Supplementary written evidence submitted
by David Paterson, Head of Corporate Governance,
The National Association of Pension Funds Limited
1. How should Government/Green Investment Bank
combine the very different skills of finance and green technologies
into a single organisation?
- How should the Green Investment Bank attract
the best expertise from the finance sector?
- Should a Green Investment Bank be able to offer
bonuses in the same way as commercial banks?
2. What (if any) bridging role would you like
to see the Green Investment Bank adopting, whereby investors and
financial markets might be able to shape Government policy on
the various initiatives that might affect green infrastructure
investment?
NAPF RESPONSE
1. We suggest that the Green Investment Bank
should focus on developing the necessary financial skills, building
on the project finance expertise which already exists in London.
Such an approach fits with the idea that its primary role will
be to raise capital for infrastructure projects where that capital
has been hard to attract in the private sector. It is hard to
see how the full range of green technology expertise can be developed
in the GIB, so inevitably it will have to make use of consultants
and other specialists when evaluating technical aspects of projects.
The Bank will compete with the private sector for
the best expertise (some of which may be available on secondment
in the early years) so it will have to offer employment packages
which are market-based, including bonuses.
2. We believe the Bank can play an important
role in educating investors as to the opportunities and reflecting
investor issues to Government. However it should reflect carefully
on whether, given its ownership/sponsorship by Government, it
can act as an effective lobby for the finance sector rather than
an "expert witness" on green issues.
6 December 2010
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