§ Mr. ForthTo ask the Secretary of State for Trade and Industry (1) when Lord Sainsbury of Turville(a) took up his duties as Parliamentary Under-Secretary of State at his Department, (b) relinquished his business responsibilities and (c) divested himself of his beneficial shareholdings; [55280]
(2) what arrangements he has made to ensure that there can be no conflict of interest between the ministerial duties of Lord Sainsbury of Turville and his business connections and shareholdings; and if he will make a statement. [55279]
§ Mr. MandelsonLord Sainsbury issued the following statement on 31 July that answered these questions
When I was appointed as a Minister in the DTI on 28 July, I was still Chairman of J. Sainsbury plc and the owner of a major shareholding in the company together with a variety of lesser financial interests.In order to avoid any actual or potential conflict of interests with my Ministerial responsibilities I have arranged my private interests, in consultations with the Permanent Secretary.I resigned as Chairman of Sainsbury's yesterday, and prior to that date saw no official papers. I now hold no other company directorships.I have today created a blind trust into which I am placing all my shareholdings, including my shares in Sainsbury's. Overseas trusts, the income of which I am a beneficiary, are being treated similarly. I have today exercised my options over shares in Sainsbury's which have been sold.The size of my shareholding in Sainsbury's means that I shall retain, and know that I retain, a beneficial interest in that company via the blind trust. I shall therefore stand aside from decisions or discussions having any specific effect on the company, including eg competition decisions concerning the company or questions of planning policy, and my officials have been instructed to keep issues giving rise to potential conflicts away from me. On generic issues such as competition policy or corporate governance, I shall have to use my judgment, as have Ministers in the past, to decide whether the issues at stake involve the possibility of particular advantage for Sainsbury's, and whether I therefore need to stand aside.Ministers are not involved in decisions on individual science projects in accordance with the long established Haldane principle, such matters being for decision by the Research Councils; and Research Councils funding goes to universities and scientific institutes rather than firms. The wider science issues with which I shall be dealing are generic, and I am advised are unlikely to lead to potential conflicts of interest. In the event of such a potential conflict, decisions would be taken by the Secretary of State or another DTI Minister.