Source · Select Committees · Public Administration and Constitutional Affairs Committee
Fourth Report - Propriety of Governance in Light of Greensill
Public Administration and Constitutional Affairs Committee
HC 888
Published 2 December 2022
Recommendations
1
Not Addressed
Para 20
The Cabinet Secretary denied that there is a lack of resource dedicated to compliance issues...
Recommendation
The Cabinet Secretary denied that there is a lack of resource dedicated to compliance issues in Government but admitted that there is a “brigading issue” of making them work together. We accept that Nigel Boardman’s proposal for a Compliance Function …
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Government Response Summary
The Government states it is not bringing forward new primary legislation to underpin the roles, remits, and codes of standards bodies, failing to provide an update on addressing the 'brigading issue'.
3
Acknowledged
Para 27
The Government has told us that it is exploring contractual mechanisms to ensure that the...
Recommendation
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 …
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Government Response Summary
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 as civil servants; this will allow the Government to explore further sanctions, such as financial penalties, if and where such breaches occur.
5
Rejected
Para 29
Putting ACOBA on a statutory basis is not a prerequisite for the Rules to be...
Recommendation
Putting ACOBA on a statutory basis is not a prerequisite for the Rules to be legally enforced and should not delay it being put into operation. Nonetheless, to reflect the importance of its role and to clarify the status of …
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Government Response Summary
The Government does not believe that ACOBA should be established in primary legislation, but will allow this reform package to take effect before any further consideration of statutory change, in the next Parliament.
6
Rejected
Para 35
The Government should implement the CSPL’s recommendation to extend the scope of the Business Appointment...
Recommendation
The Government should implement the CSPL’s recommendation to extend the scope of the Business Appointment Rules to prohibit employment in sectors where the applicant has had “significant and direct” responsibility for policy, regulation or the award of contracts rather than …
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Government Response Summary
The Government does not believe that the Code, nor any other document, should set out directly indicative examples of sanctions that should apply to particular breaches, with the exception that resignation is expected for Ministers who knowingly mislead Parliament.
9
Not Addressed
Para 55
The Commissioner for Public Appointments should be placed on a statutory basis in an Act...
Recommendation
The Commissioner for Public Appointments should be placed on a statutory basis in an Act of Parliament at the earliest opportunity. The legislation should make clear that the Commissioner’s role is to ensure that public appointments made by Ministers are …
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Government Response Summary
Minister must therefore retain the ultimate right to make a determination on whether or not a Minister has breached the Ministerial Code. The Independent Adviser's role is to provide advice to support that decision making.
10
Accepted
Para 59
The system of public appointments is predicated on the principle that such appointments are the...
Recommendation
The system of public appointments is predicated on the principle that such appointments are the responsibility of the relevant Minister and it is they that should be held accountable for them. On this basis, we endorse the recommendation of the …
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Government Response Summary
The government has introduced a new model policy to improve the management of outside interests in the Civil Service.
11
Accepted
Para 61
Rather than only raising concerns, Senior Independent Panel Members should report to the Commissioner for...
Recommendation
Rather than only raising concerns, Senior Independent Panel Members should report to the Commissioner for Public Appointments on the conduct of all significant public appointments processes. The Governance Code should be updated accordingly.
Government Response Summary
The government is developing a 'ministerial deed' to legally commit ministers to the Business Appointment Rules and will strengthen contractual clauses for civil servants to clarify post-government employment restrictions, allowing for exploration of further sanctions like financial penalties for breaches.
15
Not Addressed
Para 71
To improve transparency, Cabinet Secretary Simon Case told the Committee that he considered the suggestion...
Recommendation
To improve transparency, Cabinet Secretary Simon Case told the Committee that he considered the suggestion that a register of direct appointments be maintained and published as “an obvious thing to do”.167 We agree and recommend that departments begin to compile …
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Government Response Summary
The government response discusses new guidance on Non-Corporate Communication Channels and reporting requirements for official business, but it does not address the recommendation to compile and publish registers of direct appointments.
16
Acknowledged
The letters of engagement issued to direct appointments are tantamount to a contract of employment.
Recommendation
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 …
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Government Response Summary
The government is strengthening and clarifying compliance arrangements across departments.
18
Not Addressed
Following the resignation of Rt.
Recommendation
Following the resignation of Rt. Hon. Suella Braverman MP as Home Secretary for leaking restricted material and her subsequent reappointment only a few days later, the Government has said the new Independent Adviser will not investigate matters surrounding her resignation …
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Government Response Summary
The government's response discusses reforming the regulation of public appointments.
19
Acknowledged
Para 87
Concerns about the process for appointing the Independent Adviser are longstanding.
Recommendation
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 …
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Government Response Summary
The government keeps the honours, whistleblowing and recruitment processes under continuous review.
21
Rejected
Para 95
If the introduction of graduated sanctions to the Ministerial Code is to be effective, it...
Recommendation
If the introduction of graduated sanctions to the Ministerial Code is to be effective, it cannot be used as a means to avoid significant sanction for serious breaches. The Government should outline the range of sanctions and indicative examples of …
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Government Response Summary
The government does not believe the Ministerial Code should set out directly indicative examples of sanctions that should apply to particular breaches, except that resignation is expected for Ministers who knowingly mislead Parliament, as it's for the Prime Minister to determine sanctions on a case-by-case basis.
24
Accepted in Part
Para 104
The various ethics regulators should continue to be separate and should not be consolidated into...
Recommendation
The various ethics regulators should continue to be separate and should not be consolidated into a single ethics regulator. Nonetheless, coordination is to be encouraged. Current informal coordination could be firmed up by establishing a committee comprising the heads of …
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Government Response Summary
The Government is committed to improving transparency around direct ministerial appointments, and will be requiring departments to publish annually a list of DMAs under their remit and will further require that the terms of reference for DMAs are published online.
Conclusions (12)
2
Conclusion
Not Addressed
Para 26
The threat of legal action and the resulting sanction for breaching the Business Appointment Rules would, in our view, be a sufficient deterrent to ensure that such action would be needed only rarely.
Government Response Summary
The government's response discusses the Model Services Contract and HM Treasury guidance on Novel Financing Arrangements, implementing Boardman review recommendations related to Supply Chain Finance, which is unrelated to the recommendation.
4
Conclusion
Acknowledged
Para 28
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 Summary
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 as civil servants; this will allow the Government to explore further sanctions, such as financial penalties, if and where such breaches occur.
7
Conclusion
Acknowledged
Para 38
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 Summary
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 as civil servants; this will allow the Government to explore further sanctions, such as financial penalties, if and where such breaches occur.
8
Conclusion
Accepted
Those who seek only to comply with the Rules sensu stricto and do not apply their own “smell test” when considering future opportunities will continue to risk significant personal reputational damage. (Paragraph 39) Appointments
Government Response Summary
The government states that the Independent Adviser can now initiate inquiries, with Prime Minister consent required only in limited cases, and that the next Independent Adviser is expected to retain these powers, which effectively addresses the recommendation by describing current procedures.
12
Conclusion
Not Addressed
Para 63
We have seen the extensive scope for Ministerial discretion in the public appointments process and that, in addition to the self-restraint of Ministers, the role of the Commissioner has been vital in ensuring that the principles in Governance Code have been adhered to. The Chairs of the other ethics watchdogs …
Government Response Summary
The government agrees that a MoU or Framework Document is essential to clearly set out the roles and responsibilities for it and ACoBA, which is unrelated to the conclusion regarding Ministerial discretion in the public appointments process.
13
Conclusion
Acknowledged
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 Summary
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 direct ministerial appointment.
14
Conclusion
Not Addressed
Para 66
Too often, the Government has appeared to approach the pre-appointments process as a tick box exercise rather than an important component in the public appointments process. The Committee’s patience in this respect is not limitless. We are aware that this frustration is shared by other Select Committees. When making appointments …
Government Response Summary
The government's response discusses reforming the Register of Consultant Lobbyists.
17
Conclusion
Acknowledged
Para 80
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 Summary
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 the data to be published may need to be amended given the planned system will move from an application-based system to a contractual one.
20
Conclusion
Acknowledged
Para 92
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 Summary
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 doing so; there are transparency obligations if an investigation doesn't proceed.
22
Conclusion
Not Addressed
The position of the Prime Minister in relation to their compliance with the Ministerial Code is a complex one. Whilst the Independent Adviser can initiate investigations into any suspected breach of the Code and should be able to issue private advice on appropriate sanction, it is ultimately for the Prime …
Government Response Summary
The government discusses the role of the Commissioner and other ethics watchdogs, and states that Ministers’ nominated candidates for these roles should require the endorsement of the relevant Select Committee, failing to address the conclusion regarding the Prime Minister's compliance with the Ministerial Code.
23
Conclusion
Rejected
Para 103
The landscape of standards regulation is a patchwork, with individual watchdogs with different powers, legal basis, and appointments processes.168 Placing on a statutory basis those that are not already is an opportunity to regularise them to some extent. However, whilst all have responsibility for overseeing standards, 168 See CSPL Upholding …
Government Response Summary
The government agrees that where standards bodies are committees that the Chair of the body chairs the Advisory Assessment Panel for the recruitment of their independent members, but does not believe that these appointments require an extra layer of independent oversight.
25
Conclusion
Not Addressed
The purpose of a stronger means of enforcing standards should not be seen by those in public life as a substitute for values, nor codes of conduct as the only guide to acceptable behaviour for those in public life. Individuals in public life must recognise the importance of personal restraint …
Government Response Summary
The government's response discusses improving transparency around lobbying.