Corporate Governance

Tim Farron Excerpts

1st reading: House of Commons
Tuesday 29th November 2016 Commons Chamber

[Greg Clark]

My hon. Friend makes an excellent point. There are two complementary elements of corporate governance. One is the law and statutory requirements—it is important that they are enforced with vigour—but it is also true that the culture and practices of companies should reflect the high standards that we enjoy in this country and that contribute to business’s high reputation. I hope that we can further increase that through the measures that we are proposing.

[Tim Farron (Westmorland and Lonsdale) (LD)]

I thank the Secretary of State for his statement, and we welcome many of its suggestions. Does he accept that fairness in salaries must also sit alongside fairness in opportunity? Would he therefore consider going further and requiring companies to report on the training and opportunities available to employees for career progression? Would he also accept that alongside the bad practice, on which we must clamp down, there is much good practice in governance to learn from? I commend to the Secretary of State the innovative forms of employee participation in so many small and medium-sized enterprises, particularly in new start-up companies and particularly, of course, in Cumbria.

[Greg Clark]

The hon. Gentleman makes an important point. Outside of family and education, work offers some of the principal opportunities for progress and making use of people’s talents. The best businesses recognise that spotting and promoting talent is a sure way to corporate success. That is not part of the consultation, but he makes a reasonable point and will have the opportunity to respond to the section that asks whether other areas should be considered.