Bank of England (Appointment of Governor) Bill

Thérèse Coffey Excerpts

Friday 6th July 2012 Commons Chamber

[John McDonnell]

I shall come to that almost Jesuitical distinction between Executive roles.

It is critical that the right person be appointed to the crucial role of Governor of the Bank of England in this coming period. The new Governor will need to demonstrate not only that he or she is professionally competent, but that they can exercise sound ethical judgment. They must be able to convince the public and the markets that they can turn the liner that is financial services around. To have any credibility they will need to demonstrate that they have the confidence of not only the Chancellor of the Exchequer but of Parliament as a whole, and that they are independent—no crony, no place person, no political appointee—and able and willing to give robust independent advice. Given the scale of the task facing the new Governor and the heightened political atmosphere and context in which the banking reforms are to be developed, now, more than ever, this critical appointment cannot be left in the hands of a single Minister.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

I understand what the hon. Gentleman is saying, but there is a significant difference between having confidence in the Treasury Committee and having its consent. At the moment, Select Committees have the power to suggest changes, but I am not aware that they have a veto.

[John McDonnell]

The hon. Lady needs to recognise that the Treasury Committee has a veto over the appointment of senior members of the OBR, but I will come to that point, because it is a valid one and was also raised by the hon. Member for Watford (Richard Harrington).