Corporate Governance

Michael Gove Excerpts

1st reading: House of Commons
Tuesday 29th November 2016 Commons Chamber

[Mr Speaker]

Order. I would like to accommodate the substantial interest in the statement, but if I am to do so, given that there are two notable pieces of business to follow, pithiness will be required from those on the Back and Front Benches alike. That pithiness is first to be exemplified by Mr Michael Gove.

[Michael Gove (Surrey Heath) (Con)]

I congratulate my right hon. Friend on his statement today. We all know that the dynamic growth on which our future depends will be secured only if there is public support for the free market system that generates such growth. To that end, what more can he say about ensuring that we have working-class representatives at the heart of decision making in our great companies, and about effective curbs on executive pay when pay follows failure?

[Greg Clark]

As ever, my right hon. Friend makes his points powerfully. It is important that all the talents are represented in our boardrooms, for that is how we will achieve corporate and industrial success in this country. It forms part of the case we make in the Green Paper. Pay is appropriate when it is to attract the best talent and to reward success, but what is not in the interests of the company or confidence in industry is when pay does not reflect performance.

--- Later in debate ---

[Clive Efford (Eltham) (Lab)]

Last week, the Chancellor adopted Labour policy on fiscal investment to stimulate the economy. This week, the Secretary of State is adopting Labour policy on worker representation on boards—[Interruption.]

[Michael Gove]

Come over!

[Clive Efford]

No, you’re coming over here I’m afraid.

We need consistency from the Government. I have been advocating for years that football supporters should be represented on the boards of professional football clubs, but the Government have consistently said that that is not appropriate, so what has changed the Secretary of State’s mind?