BBC

Lord Tugendhat Excerpts

Thursday 15th September 2016 Lords Chamber

[The Earl of Courtown]

The noble Baroness makes an interesting point, but the fact is that to follow through on the transparency that runs all the way through the charter review, it was important that we arrive at this point and have transparency around individuals earning more than this amount. I disagree with her slightly about public bodies being competitive. I know that in a former life as a contractor, we had to compete on price for jobs against people in the public sector. We knew their costs but it was not a very easy game, I must admit. I understand the noble Baroness’s view, but our view is different.

[Lord Tugendhat (Con)]

My Lords, I will first revert to the question raised by my noble friend Lord Sherbourne. The question of renewal is a very important one because everybody has seen in the public sector that when appointments are coming up for renewal, the appointees sometimes become a little more flexible and a little more willing to listen to those who will be doing the appointing. I think that two terms of four years is excessive. It would be much better to consider one term of five years. That would help to ensure a greater degree of independence. Does the Minister agree that transparency is a very important principle where public money is concerned? When we talk about the licence holder, that is public money. If the BBC goes down this route, there will be pressures on others to follow—and that is very important. The question of transparency is spreading across British life; we see it more and more in business, as well as in the public service. I commend the Government for this action.

[The Earl of Courtown]

I thank my noble friend Lord Tugendhat for his question. As he said, life is changing. Twenty years ago there was no transparency in all sorts of areas—there was no transparency on matters relating to your Lordships’ House. But the world is now becoming more open and we have to accept that. I also have no doubt that the department will listen carefully to my noble friend’s comments about the term for non-executive directors.