Select Committee · Public Administration and Constitutional Affairs Committee

Propriety of governance in light of Greensill

Status: Closed Opened: 11 May 2022 Closed: 9 Oct 2023 13 recommendations 29 conclusions 2 reports

The collapse of Greensill Capital and the subsequent revelations about its relationship with government and Whitehall have raised significant concerns about the propriety of governance in this country. In April 2021, PACAC launched an inquiry into the effectiveness of rules to prevent conflicts of interest and regulation of access by current and former politicians and …

Clear

Reports

2 reports
Title HC No. Published Items Response
Fourth Report - Propriety of Governance in Light of Greens… HC 888 2 Dec 2022 25 Responded
Third Report - Propriety of Governance in Light of Greensil… HC 59 22 Jul 2021 17

Recommendations & Conclusions

8 items
3 Recommendation Fourth Report - Propriety of Governance… Acknowledged

The Government has told us that it is exploring contractual mechanisms to ensure that the...

The Government has told us that it is exploring contractual mechanisms to ensure that the Business Appointment Rules are legally enforceable. We support this. In its response to this report, the Government should outline the form that this will take and the sanctions which will apply. It should also outline …

Government response. The Government agrees that the Rules should be incorporated more effectively into contracts and is committed to developing a ‘ministerial deed’ which will be designed to legally commit ministers to the Rules, and any resulting conditions, in the same manner …
4 Conclusion Fourth Report - Propriety of Governance… Acknowledged

Enforcement and the ability to sanction those that breach the Rules is fundamental to ensuring...

Enforcement and the ability to sanction those that breach the Rules is fundamental to ensuring a regulatory regime that commands public confidence. This could be achieved by the Government pursuing those who do not comply with their obligations under the Business Appointment Rules through the courts.

Government response. The Government agrees that the Rules should be incorporated more effectively into contracts and is committed to developing a ‘ministerial deed’ which will be designed to legally commit ministers to the Rules, and any resulting conditions, in the same manner …
7 Conclusion Fourth Report - Propriety of Governance… Acknowledged

We do not think that a system based solely around voluntary compliance with general principles...

We do not think that a system based solely around voluntary compliance with general principles is sufficient to maintain public confidence in the integrity of the system regulating the ‘revolving door’ and have recommended that the Business Appointment Rules are legally enforced and that their content is strengthened. Nonetheless, the …

Government response. The Government agrees that the Rules should be incorporated more effectively into contracts and is committed to developing a ‘ministerial deed’ which will be designed to legally commit ministers to the Rules, and any resulting conditions, in the same manner …
13 Conclusion Fourth Report - Propriety of Governance… Acknowledged

This Committee, alongside other Select Committees, has tried to accommodate the Government when pre-appointment hearings...

This Committee, alongside other Select Committees, has tried to accommodate the Government when pre-appointment hearings have needed to be completed urgently, scheduling them at short notice and reporting almost immediately. However, this has now become routine. Our predecessor Committee was assured that this would be addressed, yet no improvement has …

Government response. The government acknowledges the Committee's concerns about the pre-appointment process, stating that sufficient time must be allowed for this stage to be completed. It also notes the close relationship required for the Independent Adviser on Ministers' Interests to be a …
16 Recommendation Fourth Report - Propriety of Governance… Acknowledged

The letters of engagement issued to direct appointments are tantamount to a contract of employment.

The letters of engagement issued to direct appointments are tantamount to a contract of employment. They state the purpose for which the appointment is being made, the term length, and their accountability. These letters should be shared with the Chair of the relevant Select Committee when the appointment is made. …

Government response. The government is strengthening and clarifying compliance arrangements across departments.
17 Conclusion Fourth Report - Propriety of Governance… Acknowledged

Recent events have demonstrated the impact of the perceived lack of independence and authority of...

Recent events have demonstrated the impact of the perceived lack of independence and authority of the Independent Adviser on Ministers’ Interests on public confidence in the integrity of the conduct of Ministers. In addition to advising on mitigating Ministers’ conflicts of interest, the Independent Adviser plays a crucial investigatory role …

Government response. The government agrees that transparency of the Business Appointments Rules and how the process is administered is essential to ensure that the public can have confidence in it and that the recommended information should be published. However, the specifics of …
19 Recommendation Fourth Report - Propriety of Governance… Acknowledged

Concerns about the process for appointing the Independent Adviser are longstanding.

Concerns about the process for appointing the Independent Adviser are longstanding. The independence and integrity of the postholder are fundamental to their ability to carry out the role. As with the other standards watchdogs, the power of the Prime Minister to appoint the Independent Adviser should be balanced with a …

Government response. The government keeps the honours, whistleblowing and recruitment processes under continuous review.
20 Conclusion Fourth Report - Propriety of Governance… Acknowledged

We welcome that the Terms of Reference for the Independent Adviser now effectively include the...

We welcome that the Terms of Reference for the Independent Adviser now effectively include the authority to initiate inquiries. We would expect the requirement that Prime Ministers’ consent be given beforehand to be used in extremely limited cases, such as where matters of national security or legal privilege are involved. …

Government response. The government states that the Independent Adviser may now initiate an investigation having consulted the Prime Minister, and is clear that consent would only be withheld in exceptional circumstances, where the Prime Minister considers there are public interest reasons for …

Oral evidence sessions

9 sessions
Date Witnesses
12 Jul 2022 The Rt Hon Sir John Major KG CH View ↗
28 Jun 2022 Darren Tierney · Department for International Trade, Simon Case CVO · Cabinet Office View ↗
9 Jun 2022 Rt Hon Lord Pickles · Advisory Committee on Business Appointments View ↗
17 May 2022 Rt Hon Sir Peter Riddell CBE · Cabinet Office View ↗
15 Mar 2022 Sir Alex Allan · House of Commons, Sir Philip Mawer · House of Commons View ↗
11 Jan 2022 The Lord Evans of Weardale KCB DL · Committee on Standards in Public Life View ↗
2 Nov 2021 Nigel Boardman View ↗
13 Jul 2021 Propriety of governance in light of Greensill View ↗
8 Jun 2021 Bill Crothers · Cabinet Office, Ian Watmore · Cabinet Office, Sir John Manzoni KCB · Cabinet Office, The Rt Hon Lord Maude of Horsham · Member of the House of Lords View ↗

Correspondence

7 letters
DateDirectionTitle
25 Jul 2023 To cttee Letter from Rt Hon Oliver Dowden MP, Deputy Prime Minister and Chancellor of th…
25 Jul 2023 From cttee Letter to Rt Hon Oliver Dowden CBE MP, Deputy Prime Minister and Chancellor of …
23 Jun 2021 To cttee Letter from Suzanne Heywood on Propriety of governance in light of Greensill, d…
23 Jun 2021 To cttee Letter from John Manzoni on Propriety of governance in light of Greensill, date…
25 May 2021 Correspondence with Simon Case, Cabinet Secretary on propriety and ethics in Go…
26 Apr 2021 To cttee Letter from Simon Case, Cabinet Secretary on management of outside interests by…
26 Apr 2021 To cttee Letter from Chair to Simon Case, Cabinet Secretary on Audit of Civil Service du…