§ Lord Taylor of GryfeMy Lords, I beg leave to ask the Question standing in my name on the Order Paper.
The Question was as follows:
To ask Her Majesty's Government what criteria are being applied by the Secretary of State for Trade and Industry in making appointments to the Securities and Investments Board under the provisions of the Financial Services Bill.
§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Lucas of Chilworth)My Lords, the criteria concerning the composition of the governing body of a designated agency are contained in paragraphs 2 and 3 of Schedule 7 to the Financial Services Bill. The Government will be bringing forward an amendment at Third Reading which will require the membership of the governing body to be such as to secure a proper balance between the interests of authorised persons and the general public.
§ Lord Taylor of GryfeMy Lords, I should like to thank the Minister for that helpful reply. Is the Minister aware, however, that this Question is prompted by the report in the responsible financial press to the effect that Mr. John Kay, the distinguished director of the Institute of Fiscal Studies, was asked by his right honourable friend whether he would serve on the SIB but that this was vetoed by the Chancellor of the Exchequer? Since Mr. Kay is a considerable critic of government taxation policies, can I be assured that political affiliations will not influence appointments to the Securities and Investments Board?
§ Lord Lucas of ChilworthMy Lords, I cannot possibly comment on press speculation about who was, or who was not, considered for membership of the Securities and Investments Board. Clearly, there were many possible candidates for appointments of this nature, and clearly there must be wide consultation about possible names. The assurance that I can give the noble Lord is that all members of the governing body are men of the highest calibre.
§ Lord Harmar-NichollsMy Lords, is it not a little premature to have questions asked and answered on the provisions of a Bill that has not yet been approved?
§ Lord Lucas of ChilworthMy Lords, there is nothing premature about my Answer. The noble Lord, Lord Taylor of Gryfe, asked me what were the criteria. The criteria are those set down in the Bill before your Lordships' House at the moment. If there were no Bill, the criteria would still obtain.
§ Lord StrabolgiMy Lords, why did the noble Lord say "men" of the highest calibre"? Are the Government not considering ladies as well?
§ Lord Lucas of ChilworthMy Lords, the noble Lord will recall that my noble friend Lord Ferrers, when asked this question some seven years ago, said that "the male embraces the female".
§ Lord Williams of ElvelMy Lords, is the noble Lord aware that in the light of the defeat of the Government on the composition of the SRO boards and in the light of the amendment to which the noble Lord has referred, reluctantly being brought forward by the Government on Third Reading, we on this side of the House will be pressing him in the Third Reading debate as to exactly what sort of criteria will be used for these appointments?
§ Lord Lucas of ChilworthMy Lords, I am grateful to the noble Lord, Lord Williams of Elvel, for having given me notice of his intention to press this matter. I shall look forward with anticipation to that debate.
§ Lord DiamondMy Lords, the noble Lord did not answer my noble friend's question, did he? The question was whether the appointments would be free of any political commitment, to which the noble Lord said that those appointed would be of the highest calibre. Can I have his assurance that men—and "men" embraces women—other than of the Conservative Party are possibly in the category that might be described in suitable circumstances as being of the highest calibre?
§ Lord Lucas of ChilworthMy Lords, I am sure that there are many men and women of the highest calibre who have political affiliations outside the Conservative Party.