Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 20-39)

DEPARTMENT FOR CULTURE, MEDIA AND SPORT AND UK SPORT

2 APRIL 2008

  Q20  Chairman: My personal interest in sport is sailing and presumably we are going to be there at the top, are we, Ms Nicholl, in sailing?

  Ms Nicholl: Absolutely; we are the best sailing nation in the world at this point in time.

  Q21  Chairman: And you are going to give us an absolutely commitment here that this seafaring nation is not going to have a disaster in 2012? This is down to you, is it? What are you doing about it? Tell us what you are doing about it to make sure that we retain our reputation as the best sailing nation in the world.

  Ms Nicholl: In London in 2012 I am sure we can be confident. We have some excellent sailing results.

  Q22  Chairman: We are going to be the top nation, top dog, are we?

  Ms Nicholl: And it is a matter of them retaining it. They are currently the top nation; it is a matter of retaining it.

  Q23  Chairman: But we are going to retain it are we?

  Ms Nicholl: That is what the sailing fraternity would say as well; that is their target, absolutely.

  Chairman: We are in your competent hands. Mr Bacon.

  Q24  Mr Bacon: I would like to ask first of all about targets, which the Chairman touched on. Mr Steele, you have become Chief Executive fairly recently and Ms Nicholl was our witness as Acting Chief Executive the last time. Does your remuneration include a bonus?

  Mr Steele: Yes, it does.

  Q25  Mr Bacon: How is the bonus calculated?

  Mr Steele: On a performance plan which is monitored quarterly through the year.

  Q26  Mr Bacon: Does the performance plan have any relation to these targets?

  Mr Steele: It relates to delivery of funding agreement amongst other performance indicators.

  Q27  Mr Bacon: I am talking about the targets in figure 15. Is there any relationship between the targets in figure 15 and whether they are achieved or not and your remuneration?

  Mr Steele: The relationship would be that the targets in figure 15 would be reflected in the funding agreement in terms of the overall targets we set and my—

  Q28  Mr Bacon: I am not quite sure I understand that. I am really asking, and it is very obvious—and the Chairman made this point—they are not stretching targets. The National Governing Body aggregate for the first row there is 40, the agreement between the Department and UK Sport was 30 and the actual was 51 and carrying this through all the way through the actual significantly exceeded the target. What I am saying is, does your remuneration or your bonus have anything to do with the fact that the actual exceeds the target? Are you remunerated more because the actual exceeds the target?

  Mr Steele: No.

  Q29  Mr Bacon: You are not?

  Mr Steele: No.

  Q30  Mr Bacon: At all?

  Mr Steele: No.

  Q31  Mr Bacon: Ms Nicholl, you have been in post since 1999, do you have a bonus?

  Ms Nicholl: I do.

  Q32  Mr Bacon: How is your bonus calculated?

  Ms Nicholl: On the basis of delivery of objectives which relate to—

  Q33  Mr Bacon: What are your objectives?

  Ms Nicholl: The objectives relate to the delivery of the responsibilities of the performance directorate, they are not specifically linked to—

  Q34  Mr Bacon: You do not get more money if we get more gold medals?

  Ms Nicholl: It is not as crude as that, if you do not mind me saying.

  Q35  Mr Bacon: I put it crudely deliberately but there may be a slightly more sophisticated way of putting the same point: if we do better in the Olympics do you get a bonus—a bigger bonus than you otherwise would if we do badly?

  Ms Nicholl: No.

  Q36  Mr Bacon: It sounds to me a rather poorly constructed bonus arrangement. I would have thought it would be a good bonus arrangement where you got more money if we got more medals.

  Ms Nicholl: I would say that our objectives linked to performance-related pay at UK Sport are those for which as individuals we can be held fully accountable and responsible for the delivery of them. So they are very much more specific about the responsibilities on a particular post in terms of delivery.

  Q37  Mr Bacon: Can I ask about the Finance Director—and this is probably a question for you, Mr Steele? It says in paragraph 2.35 that: "UK Sport currently has no Finance Director." This Report was published on 20 March and I presume that is still accurate, is it?

  Mr Steele: We have been in the process—

  Q38  Mr Bacon: I am asking is it still accurate?

  Mr Steele: It is.

  Q39  Mr Bacon: Is there no Finance Director as of today?

  Mr Steele: No.


 
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