Gender Balance on Corporate Boards

William Cash Excerpts

Monday 7th January 2013 Commons Chamber

[Mr William Cash (Stone) (Con)]

The first question for consideration in this reasoned opinion debate is, in a nutshell, whether the Commission will have to reconsider its proposal, and that issue turns on whether there will be sufficient opinions representing one third of all the votes in national Parliaments—on the basis that each Parliament has two votes. The real question is whether we will really get that. Of course, if we do not, the question that follows is: what will happen? Some believe that the principle of subsidiarity ought to be applied, but there is also the question of whether we should refuse to accept it—but that is for another day.

Secondly, there is a question about whether the directive will achieve its target of 40% representation of female non-executive directors and—this has not been mentioned yet—30% of all directors on the boards of publicly listed companies by 2020, or 2018 in the case of listed public undertakings. Furthermore, there is the question of the exemption for small and medium-sized enterprises—I have not heard that mentioned either—and for companies whose work forces have fewer than 10% female employees.

Thirdly, where national measures have already been introduced in some countries with a view to increasing the representation of women on corporate boards, companies need not apply the new recruitment and selection requirements, but will be required to do so from 2018-20 if they have not reached the 40% target. I put that on the record because, as far as I am aware, none of those three points has been made in the debate so far.

In the interest of brevity, I will simply say that the questions concerning breaches of the principle of subsidiarity are set out in the draft reasoned opinion and I do not need to repeat them. I would like to put several questions to the Minister, but, in order to ensure that we get through what we have to get through in the time allotted, I shall write to him with the questions that the European Scrutiny Committee would like answered, and he can reply to us. I do not therefore have to go through them all now—I would not have time anyway.

I shall make only one more point. Will the Minister tell us whether—and, if so, to what extent—the Government plan to make use of the reasoned opinion in the Council negotiations on the proposal? With that I shall conclude, but I shall be writing to the Minister and look forward to his considered response.