In view of what my noble friend has been discussing in terms of the operation of the boards, I find it absolutely unbelievable that the Secretary of State should be able to appoint the chairman, the deputy chairman, all the board members and the chief executive. We in the corporate sector, in private companies, have been ““Higgsed””—and I hope that the agricultural department knows what that means. There is a rule of corporate governance, there is a code of practice, and the independence of the board is absolutely paramount. The independence of everyone who is appointed to the board is scrutinised and agreed on by other members of the board, by the nominations committees and by the chairman. If they are all appointed by one man, however marvellous the great and the good that are on these boards, I fear that their independence will be compromised.
As for the idea that board members should be given pensions—surely that compromises independence. I know that that did happen in the old utilities years and years ago, but when they were privatised and independent board members were appointed, that went out the window. There is no way that the appointment of a non-executive director to a board, or an independent chairman, independent vice-chairman or deputy chairman, should include a pension; absolutely no way. Am I missing something really different?
Natural Environment and Rural Communities Bill
Proceeding contribution from
Baroness O'Cathain
(Conservative)
in the House of Lords on Tuesday, 24 January 2006.
It occurred during Committee of the Whole House (HL)
and
Debate on bills on Natural Environment and Rural Communities Bill.
About this proceeding contribution
Reference
677 c1107-8 Session
2005-06Chamber / Committee
House of Lords chamberSubjects
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