Rich for MPs to ask about qualifications

Feb 12 2009 by Iain Laing, The Journal

THIS week four of the nation’s leading bankers – and that’s not rhyming slang – were hauled before the House of Commons Treasury Committee to do penance.

My favourite part was when they were asked precisely what formal banking qualifications they had which justified them heading up RBS and HBOS.

Sir Fred Godwin, former chief executive of RBS, told the MPs he had a degree in law and was a chartered accountant. As an accountant, he added, he had audited banks and ‘had been involved in winding up banks’.

I suppose that last bit’s an ideal qualification for what he did at RBS, but I bet he immediately wished he hadn’t said it.

It is, though, a bit rich for our politicians to demand of anybody what their qualifications are. for being in charge of anything, when they themselves control massive government departments without the experience of running so much as a whelk stall.

I was brooding on this last week while watching BBC’s Question Time. On the panel was Geoff Hoon, Secretary of State for Transport, trying to explain why the country had ground to halt during the recent ‘snow event’.

Before becoming an MP, Mr Hoon was a law lecturer and a barrister: honourable occupations , no doubt, but not an ideal preparation for public administration. This might explain why the transport system coped so badly with the inclement weather.

He claimed that such weather had not occurred for 18 years, making it uneconomic for the country to invest in snow ploughs which cost £100,000, cost another £10,000 a year to maintain and need replacing after 10 years.

Had Geoff Hoon ever run a business he might have questioned the civil servant who gave him those ridiculous figures. A snow plough is just a lorry with a big shovel on the front and a converted secondhand tractor would probably be as effective.

Also, if they are only used every 18 years, why should annual maintenance costs be so astronomical and why would they need replacing before they have – on average – shovelled a single flake of snow?

It is frightening that he is a member of the Government that has taken over the running of the banks from Sir Fred and company.

Peter Jackson is a freelance writer and former business editor of The Journal - p.jackson77@btinternet.com