My Lords, I quite understand the desire of the noble Lord, Lord Stevenson, for greater transparency in the administration of public bodies. However, I am concerned that this amendment would unduly limit the flexibility to respond to the possible circumstances in which removal of a board member might be necessary.
General public law principles and the terms and conditions of members’ appointments already ensure Ministers act rationally, reasonably and fairly in removing public appointees. Currently, the Secretary of State has the power to appoint members to the HEFCE board under such terms and conditions as he or she sees fit, detailing the circumstances whereby it would be appropriate for that member to be dismissed. This arrangement has worked successfully to allow Secretaries of State to lay out what they expect from HEFCE board members, while allowing for flexibility to customise these expectations according to the priorities of the day.
This is also fair to board members themselves, as what is expected of them is made clear through the terms and conditions. We are replicating those arrangements in this Bill.
It is also important to recognise that there could be many occasions when it would be inappropriate for the Secretary of State to divulge the grounds for dismissal in an individual case. For example, if the member were removed for problems relating to health or the personal life of themselves or their family, it may well be inappropriate to reveal that publicly. More generally, the reputation of a dismissed member, and therefore their employment prospects, might be impinged were the reasons for his or her dismissal made public. There may also be legal implications for a breach in confidentiality.
Although it has never been necessary to remove a HEFCE board member from office, if the occasion had arisen, the Secretary of State would have corresponded directly with that member to lay out the reasons for the dismissal. This correspondence would have to explain the decision in detail, and the dismissed member would have the right to publish that letter should they wish.
I turn now to Amendments 20 and 21, on the remuneration and compensation of board members. Let me reassure noble Lords that the OfS is a public body and, as such, the salary of its chair and chief executive will be made public in the usual way via a list of the remuneration of senior civil servants and officials from the public sector. In line with HM Treasury’s financial reporting manual, the OfS will already be expected to publish data relating to board member remuneration, allowances, expenses and compensation as part of its annual reporting process.
Turning to Amendment 23, let me assure the noble Lord, Lord Stevenson, that I wholly understand and sympathise with his desire to ensure that the OfS board is able to take the often difficult decisions with which it will be faced, free from political influence. However, I do not believe that this amendment is the right way to achieve that. To bar the Secretary of State’s representative from participating effectively in OfS board deliberations would create a barrier to the OfS board having access to the latest policy thinking from government when considering strategic decisions, in the way that HEFCE is currently able to. Current legislation allows the Secretary of State’s representative to take part in discussions at HEFCE board meetings, and such discussions have routinely been two-way, with both HEFCE’s decisions and government policy thinking benefiting as a direct result. This arrangement has not, though, led to any credible doubt about the independence of the HEFCE board or to suggestions of undue influence.
We believe that this is because the current legislative framework makes very clear that the Secretary of State’s representative on the HEFCE board has no formal influence over or voting rights as regards board decisions, and this Bill replicates those clear and explicit limits on how the Secretary of State’s representative can act at OfS board meetings. I trust that these reassurances have been helpful and ask that the noble Lord withdraws his amendment.