Schedule 1 - The Office of Fair Trading
Enterprise Bill
12:00 pm
Miss Melanie Johnson (Parliamentary Under-Secretary, Department of Trade and Industry; Welwyn Hatfield, Labour)
Perhaps it would be helpful, in answer to some of the points made by the hon.
Member for Huntingdon, if I set out how we see the schedule. I will also pick up some of the other points that were made.
The schedule sets out fundamental terms by which the OFT must operate in order to ensure the accountability and transparency of this public body. The schedule stipulates that the OFT shall consist of a chairman and, as the hon. Gentleman said, a board of at least four other members. As I said earlier, our thinking is in the order of five to seven members. My right hon. Friend the Secretary of State will appoint the chairman and, in consultation with the chairman, the board members. That process will be conducted according to the principles of open competition and the Nolan procedures.
John Vickers, the current Director General of Fair Trading, will be the first OFT chairman for the remainder of his term, in line with what was agreed when he was appointed. The terms of appointment will be for a maximum of five years, as the hon. Gentleman said, and are renewable. I do not think that we should stipulate a minimum term in legislation. That would provide too little flexibility, and judging by the hon. Gentleman's remarks, I think that he understands the need for flexibility. Indeed, it is sometimes attractive—especially initially, when one is making a number of appointments—not to appoint everyone for the same time frame, simply to ensure that not all future appointments are made at the same time and that there is continuity in the organisation. It would be unfortunate if we stated a minimum time in legislation.