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17 May 2000
BANK OF ENGLAND: COURT APPOINTMENT
The Queen has been pleased to approve the appointment of Sir Brian Moffat and Bridget Blow to the Court of the Bank of England. The Queen has also been pleased to approve that Roy Bailie, Sheila McKechnie, Bill Morris, John Neill and Jim Stretton be re-appointed as Non-executive Directors to the Court of the Bank of England. All non-executives serve in a personal capacity, but bring particular experience to the Court's deliberations.
NOTES TO EDITORS
1. Under the Bank of England Act 1998 the Court of Directors consists of the Governor, 2 Deputy Governors and 16 non-executive directors. These are all Crown appointments on the recommendation of the Chancellor and the Prime Minister.
2. The Court is required by the Act to determine the Bank's objectives and strategy, to ensure the effective discharge of the Bank's functions and, subject to that, to ensure the most efficient use of the Bank's resources. Court approves the Bank's expenditure budget, which reflects the strategy determined by the Court, and monitors outturns against budget.
3. The non-executive Directors, as members of the sub-committee of Directors, are required by the Act to review the Banks performance in relation to the objectives set by Court, to monitor the extent to which the Bank is meeting its financial objectives and to keep under review the internal financial controls of the Bank. The non-executive Directors make their own annual report on the discharge of these functions. All non-executives act in a personal capacity.
4. Although they have no involvement in, nor responsibility for, the monetary policy decisions taken by the MPC, the non-executive Directors are required under the Act to keep under review the procedures that the MPC follows, and especially to satisfy themselves that the MPC has collected the regional, sectoral and other information necessary to formulate monetary policy.
Background Information
5. Roy Bailie, Sheila McKechnie, Bill Morris and Jim Stretton were first appointed on 1 June 1998 when the Bank of England Act 1998 came into force. John Neill was first appointed in March 1996.
6. Sir Brian Moffat is Chairman of Corus. Bridget Blow is Chief Executive of IT Net. Roy Bailie is Chairman of W&G Baird (Holdings) Ltd. Shelia McKechnie is Director of the Consumers? Association. Bill Morris is General Secretary of the Transport and General Workers Union. John Neill is Deputy Chairman and Group Chief Executive of the Unipart Group of companies. Jim Stretton is Director and Chief Executive of UK Operations, Standard Life Assurance Company.
7. The two new appointments replace Graham Hawker, who did not wish to be considered for reappointment when his current term expires on 31 May 2000, and Christopher Allsopp, who takes up an appointment on the MPC from 1 June 2000. Mr Allsop's move from the Court to the MPC was announced on Thursday 4 May 2000. The Bank of England Act 1998 prohibits a non-executive director serving on the MPC and the Court at the same time.
8. Terms are usually for three years and Sir Brian Moffat's will run until May 2003. For Bridget Blow the Bank of England Act 1998 requires that she is appointed for the remainder of Christopher Allsopp's term. Her appointment will therefore be for 2 years - 1 June 2000 to 31 May 2002.