1 Introduction
Background
1. In our First Report of the current Session, we
indicated our intention to continue with the practice of holding
hearings and issuing short Reports on appointments to the Monetary
Policy Committee (MPC) of the Bank of England.[1]
This practice enhances the transparency of the appointment process
and increases the level of information available to the public
and to Parliament about the functioning of the MPC.
2. We have resolved to restrict questioning to issues
of the appointee's personal independence and professional competence.
We have also decided to send a preliminary questionnaire to each
appointee prior to the hearing requesting information about the
appointee's career and views on relevant economic issues.[2]
3. In this Report, we have considered the suitability
of Professor Tim Besley and Dr Andrew Sentance for their roles
as members of the MPC. We have not considered the appropriateness
of the current appointment process for members of the MPC. We
have also not commented on the overall composition of the MPC.
We have previously indicated that we may return to these topics
at an appropriate time,[3]
which we expect to be in the course of 2007.
4. We took evidence from both Professor Tim Besley
and Dr Andrew Sentance on 12 October 2006. This evidence, for
which we are most grateful, will be published shortly, together
with their answers to our questionnaire and their CVs.
Current vacancies
5. The current vacancies on the Monetary Policy Committee
arose from the appointment of Richard Lambert as Director General
of the Confederation of British Industry, and the untimely death
of David Walton.
6. We would like to thank Richard Lambert for his
contribution to the work of the MPC, and wish him every success
in his new role.
7. David Walton had served as Specialist Adviser
to the Treasury Committee in the last Parliament and was making
his mark as a thoughtful and independent member of the MPC. It
was with great sadness that we learnt of his death. His passing
has deprived the MPC and British public life of a great economist.
1 Treasury Committee, First Report of Session 2005-06,
The Monetary Policy Committee of the Bank of England: appointment
hearings, HC 525-I Back
2
Treasury Committee, Third Report of Session 1997-98, Confirmation
Hearings, HC 571 Back
3
Treasury Committee, Third Report of Session 2005-06, The Monetary
Policy Committee of the Bank of England: appointment hearing for
Sir John Gieve, HC 861, para 3 Back
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