HC Deb 03 May 1973 vol 855 cc1461-3
Q3. Mr. William Hamilton

asked the Prime Minister if he will take steps to impose on senior members of public bodies appointed by Ministers the same conditions relating to the taking up of employment on retirement with outside firms as are now imposed on retired senior civil servants.

The Prime Minister

I refer the hon. Gentleman to the answer which I gave to his supplementary question on 12th April [Vol. 854, c. 1505]. As I said then, I am considering this matter generally, but the position of appointees to public bodies is different from that of members of the Civil Service, and this must be taken into account.

Mr. Hamilton

Does not the Prime Minister agree that there are certain similarities between the two, in the sense that people who are appointed to public boards and then retire have a good deal of expertise which can be used with great profit by private companies in contractual relationships with Government Departments which seek to engage them? Is the Prime Minister aware that there is a good deal of disquiet in Scotland, for example, concerning two people who served for a number of years with the Highlands and Islands Development Board and are now actively engaged in land speculation based on the North Sea oil discoveries? Is not that highly undesirable? The suspicion may or may not be warranted, but it deserves careful examination. I hope that we shall have an assurance that the matter is being studied with a degree of urgency.

The Prime Minister

All members of the Highlands and Islands Development Board have to sign an Official Secrets Act declaration. That Act binds them during and after their service in regard to information obtained through dealings with the Government. If the hon. Gentleman has any evidence that a declaration of this kind has been broken, I shall see to it immediately that an inquiry is made.

On the general question of public boards, when people are appointed to them they bring a great deal of expertise with them. If there is to be any limitation after they leave the boards, the already great difficulties of persuading people to serve on public boards will become even greater. What is more, there will be no sanction to impose against them after they leave the public boards.

Mr. Harold Wilson

While awaiting the result of the survey which is being carried out, can the Prime Minister say how far it is the practice of existing public boards, corporations, and so on, in their original employment contracts, to provide, for example, that people concerned with awarding contracts do not, without the permission of the board or corporation concerned, take up service with some of those to whom contracts have been awarded? Is this fairly general practice? Do any of the boards do it?

The Prime Minister

There are variations in practice in this respect. It would affect the permanent employees of public bodies more than board members who may serve for only a limited period. That is one of the matters that I am looking into.

Mr. Loughlin

I appreciate the difficulty of trying to resolve an issue of this kind, but does the Prime Minister agree that there is increasing concern on the part of the general public about the conduct of people in public life? Will he give serious consideration to the introduction of a code of conduct applying to everyone, whether they be appointees or elected representatives, in both local government and Parliament, in much the same way as he applies a code of conduct to his Ministers?

The Prime Minister

The code is clearly laid down, has been handed on from one Government to another, and is continually brought up to date in respect of the requirements of Ministers.

I understand that discussions are still proceeding on the matter relating to Members of this House.

Regarding the Civil Service, I have reviewed all the instructions. On the whole, they have worked well. The fact that, where there have been breaches, action has been taken either internally in the Civil Service or possibly in the courts, in particular cases, shows that they are being fully implemented.

I am still studying the part relating to local government. For obvious reasons, it may not be possible to make a statement on this matter for a little while. We have just discussed the question of public bodies.

Mr. Clark Hutchison

Does my right hon. Friend realise that there is no concern in Scotland about these appointments? They are very good. Will he go ahead with them and not be diverted by any of these absurd canards of the hon. Member for Fife, West (Mr. William Hamilton)?