CORPORATION'S MEMBERS' TERMS OF APPOINTMENT, ETC.: NO NEED FOR STATEMENTS TO BE LAID BEFORE PARLIAMENT

HC Deb 15 July 1981 vol 8 cc1361-2

Lords amendment: No. 13, after clause 5, insert the following new clause— . The following provisions of the 1975 Act shall cease to have effect: —

1. (a) in section 1, subsection (6) (after appointing member of Corporation, Secretary of State to lay before Parliament a statement of term of appointment); and
2. (b) in Schedule 1, paragraph 8 (Secretary of State to lay before Parliament a statement of certain determinations about remuneration etc. of Corporation's members)."

Mr. Michael Marshall

I beg to move, That this House doth agree with the Lords in the said amendment.

Mr. Deputy Speaker

With this we may take Lords amendments Nos. 16, 18 and 21.

Dr. John Cunningham

Amendment No. 13 removes a provision it section 1(6) of the 1975 Act, which states: As soon as possible after appointing a person to be a member of the Corporation the Secretary of State shall lay before each House of Parliament a statement of the term for which he has been appointed. The proposed new clause alters paragraph 8 of schedule 1 on the disclosure of the terms and conditions of remuneration to such appointees to the board. We are in favour of the disclosure of such appointments both to Parliament and to the public and the terms and conditions on which they are appointed. Why is the amendment removing the provision for the House to be so informed? Is the point to be met in some other way, and, if so, what is that way to be? If it is to be met, we shall be happy to accept the amendment. I hope that the Minister will be able to give us, an assurance that the amendment will not mean that appointments will be made and not publicly recorded in some way, even if it is not within the terms presently laid down by the 1975 Act.

4.30 am

I understand that the linked amendments are merely drafting or consequential amendments. I have no questions to ask about the other amendments.

Mr. Michael Marshall

I confirm that amendments Nos. 16, 18 and 21 are consequential and related to amendment No. 13. The amendments take the opportunity afforded by the Bill to remove from the Secretary of State the duty to lay before Parliament certain statements about members of the corporation. This is to bring the corporation in line with other nationalised industries. Section 1(6) of the lion and Steel Act 1975 requires that As soon as possible after appointing a person to be a member of the Corporation the Secretary of State shall lay before each House of Parliament a statement of the term for which he has been appointed. Paragraph 8 of schedule 1 to the Act provides that the Secretary of State shall also lay before each House of Parliament a statement of the remuneration, allowances and pensions of board members whenever there is a change in the amounts being paid.

It is considered that these provisions are no longer necessary. Information on board members will still be available to the House as the corporation publishes similar details in its annual report and accounts, which are laid before Parliament. Should the corporation for any reason decide to discontinue this practice, it would be open to the Secretary of State, under section 24(1) of the 1975 Act, to direct the corporation to resume it. These amendments follow the precedent set in respect of the remuneration, allowances and pensions of board members of other nationalised industries that are sponsored by the Department.

The hon. Gentleman may be aware that the proposed clause follows the practice of the previous Administration in the proposals put to the House at the time of the Aircraft and Shipbuilding Industries Act 1977.

Question put and agreed to.