Select Committee on Treasury Third Report

1  Introduction

1. In our First Report of Session 2005-06, we indicated our intention to continue with the practice of our predecessors of holding hearings and issuing 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 Sir John Gieve for the post of Deputy Governor for Financial Stability at the Bank of England and for his role as member of the MPC. We express full confidence in the work of the MPC, whilst noting that both Deputy Governors of the Bank of England were formerly civil servants. The appointment process for senior posts at the Bank of England and for positions on the MPC and the composition of the MPC are issues to which we will return at the appropriate time.

4. We took evidence from Sir John on 26 January 2006. This evidence, for which we are most grateful, is published with this Report, together with his answers to our questionnaire.

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

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