Advisory Committee on Business Appointments — House of Commons, 2018-06-28
Topic: Government Operations
Christian John Patrick Matheson (Labour, Centre-left): I am most grateful for that clarification and the House will have noted it The Advisory Committee on Business Appointments is entirely necessary, but, to use the phrase of the moment, not at all fit for purpose. The clue is in the name. The A in ACoBA stands for "advisory" and it is clear that the committee is just that: it has no teeth and if its harshest sanction is to embarrass—well, that is scarcely a sanction at all. I wonder whether, as currently constituted, it is even designed to make a difference with a very narrow remit. As far as I can tell, ACoBA has never actually refused an appointment ACoBA is appointed by the Government to provide independent advice to senior Crown servants and to all former Ministers of the UK, Scottish and Welsh Governments on any appointments they wish to take up within two years of leaving public or ministerial office. ACoBA applies the business appointment rules, which are largely procedural and set by the Government. They have no statutory basis and there are no sanctions for non-compliance. The rules apply for up to two years after leaving office and they are applied with inconsistency It is a clear failure of ACOBA that it cannot adequately distinguish between different types of post-ministerial appointment, for example paid as opposed to unpaid work. One former senior civil servant recounted to me the story of when they left the civil service. They took a position on the board of trustees of a community group. It took months upon months for this voluntary position to be approved. Part of the delay was down to due diligence, because the trust was a charity. If charities and the Charity Commission can undertake due diligence and prevent an appointment pending such checks, why can ACOBA not do that Meanwhile, as we have heard, the former Chancellor George Osborne can take a job with BlackRock in the City of London and not even tell ACOBA that he was taking a job editing the London Evening Standard. I understand the same applies to the former head of GCHQ, Robert Hannigan, who was appointed to the European advisory board for a new US cyber-security firm, BlueteamGlobal, and did not even tell ACOBA. Because it is set up as an advisory and non-statutory committee, ACOBA finds enforcement difficult. I suspect that this is the reason it does not attempt to enforce. Indeed, it may be the reason it was set up in this way in the first place In addition to ACOBA’s toothlessness, there are further problems, for example with conflicts of interest. There are numerous, multiple examples of members of the committee declaring interests in firms to which the applicants were being appointed, but not recusing themselves from those cases. This included Mary Jo Jacobi, who has financial interests in BP but did not recuse herself from Vernon Gibson’s application, and John Wood, who has interests in BT, did not recuse himself from Keith Bristow’s commission with them ACOBA was also criticised by the former Public Administration Committee for having an "establishment" make-up—the hon. Member for Harwich and North Essex raised this point. ACOBA is chaired by a Baroness and former Conservative Minister, who also works as a consultant for a company that looks very much like a lobbying firm. Other members of the committee include two Lords, a knight, a former general secretary of the First Division Association, lawyers and former senior civil service grandees. I go back to the evidence cited by the Chair of the Public Administration and Constitutional Affairs Committee about bus drivers or hairdressers. As he says, there seems to be no sight of them.