1. BUSINESS APPOINTMENT APPLICATION: Sir James Bevan KCMG, former Chief Executive at the Environment Agency. Paid appointment with Dŵr Cymru Cyfyngedig.

Sir James sought advice from the Advisory Committee on Business Appointments (the Committee) under the government’s Business Appointments Rules for Former Civil Servants (the Rules) on an appointment he wishes to take up with Dŵr Cymru Cyfyngedig (Dŵr Cymru Welsh Water) as a Non Executive Director.

The purpose of the Rules is to protect the integrity of the government. Under the Rules, the Committee’s remit is to consider the risks associated with the actions and decisions made during Sir James time in office, alongside the information and influence a former Crown servant may offer Dŵr Cymru Welsh Water. The material information taken into consideration by the Committee is set out in the annex.

The Committee’s^{[footnote 1]} advice is not an endorsement of the appointment – it imposes a number of conditions to mitigate the potential risks to the government associated with the appointment under the Rules.

The Rules^{[footnote 2]} set out that Crown servants must abide by the Committee’s advice. It is an applicant’s personal responsibility to manage the propriety of any appointment. Former Crown servants are expected to uphold the highest standards of propriety and act in accordance with the 7 Principles of Public Life.

2. The Committee’s consideration of the risks presented

There is a limited overlap with Sir James’ previous responsibility for environmental regulation in England. Dŵr Cymru Welsh Water is a not-for-profit company that supplies drinking water and wastewater services to most of Wales and bordering parts of England. As a Wales-based water company, the majority of its work is by Natural Resources Wales. There is a small operation in England - providing drinking water to parts of Hertfordshire - this is regulated by the Environment Agency.

The Environment Agency confirmed he did not meet with, nor was he involved in any decisions specific to Dŵr Cymru Welsh Water. Therefore, the Committee considered the risk he could reasonably be seen to have been offered this role as a reward for decisions made, or actions taken in office, was low.

As Chief Executive of the Environment Agency Sir James was responsible for advising on major industry, water and resources - as such, there are risks associated with his access to privileged information in this sector. The risks are limited in relation to this appointment as the Environment Agency does not consider him to possess sensitive information that may provide an unfair advantage to Dŵr Cymru Welsh Water. Further, it has been almost two years since Sir James left Crown service – creating a gap between his access to information and this proposed role.

As the Chief Executive of an environmental regulator, there is a risk that Sir James might be seen to offer unfair access to, and influence within, government. Sir James confirmed his role as Non Executive Director excludes any dealings with government, reducing the risk he could be perceived to be lobbying government - which all former senior Crown servants are prevented from doing for two years after leaving office.

3. The Committee’s advice

The Committee determined the risks identified in this application can be appropriately mitigated by the conditions below. These make it clear Sir James cannot make use of any privileged access to information, contacts or influence gained from his time in government to the unfair advantage of Dŵr Cymru Welsh Water.

The Committee’s advice, under the government’s Business Appointment Rules, that this appointment with Dŵr Cymru Cyfyngedig should be subject to the following conditions:

● he should not draw on (disclose or use for the benefit of himself or the persons or organisations to which this advice refers) any privileged information available to him from his time in Crown service;

● for two years from his last day in Crown service, he should not become personally involved in lobbying the UK government or any of its arm’s length bodies on to or behalf of Dŵr Cymru Cyfyngedig (including parent companies, subsidiaries, partners and clients); nor should he make use, directly or indirectly, of his contacts in the government and/or Crown service contacts to influence policy, secure business/funding or otherwise unfairly advantage Dŵr Cymru Cyfyngedig (including parent companies, subsidiaries, partners and clients); and

● for two years from his last day in Crown service, he should not provide advice to Dŵr Cymru Cyfyngedig (including parent companies, subsidiaries, partners and clients) on the terms of, or with regard to the subject matter of, a bid with, or contract relating directly to the work of the UK government or any of its arm’s length bodies.

The advice and the conditions under the government’s Business Appointment

Rules relate to an applicant’s previous role in government only; they are separate from rules administered by other bodies such as the Office of the Registrar of Consultant Lobbyists, the Parliamentary Commissioner for Standards and the Registrar of Lords’ Interests^{[footnote 3]}. It is an applicant’s personal responsibility to understand any other rules and regulations they may be subject to in parallel with this Committee’s advice.

By ‘privileged information’ we mean official information to which a minister or

Crown servant has had access as a consequence of his or her office or employment and which has not been made publicly available. Applicants are also reminded that they may be subject to other duties of confidentiality, whether under the Official Secrets Act, the Ministerial Code/Civil Service Code or otherwise.

The Business Appointment Rules explain that the restriction on lobbying

means that the former Crown servant “should not engage in communication with Government (Ministers, civil servants, including special advisers, and other relevant officials/public office holders) – wherever it takes place – with a view to influencing a Government decision, policy or contract award/grant in relation to their own interests or the interests of the organisation by which they are employed, or to whom they are contracted or with which they hold office.”

All Peers and Members of Parliament are prevented from paid lobbying under the House of Commons Code of Conduct and the Code of Conduct for Members of the House of Lords. Advice on obligations under the Code can be sought from the Parliamentary Commissioners for Standards, in the case of MPs, or the Registrar of Lords’ Interests, in the case of peers.

Sir James must inform us as soon as he takes up this work or if it is announced that he will do so. Similarly, he must inform us if he proposes to extend or otherwise change his role with the organisation as depending on the circumstances, it might be necessary for him to seek fresh advice.

Once this appointment has been publicly announced or taken up, we will publish this letter on the Committee’s website.

4. Annex - Material Information

4.1 The role

Dŵr Cymru Welsh Water is a not-for-profit company that supplies drinking water and wastewater services to most of Wales and bordering parts of England. It is regulated under the Water Industry Act 1991 as amended by the Water Act 2014.

Sir James stated he seeks to take up a paid, part-time appointment in a standard Non Executive Director role – to form part of the Board which sets the company’s strategy, monitors performance and holds the executive to account for delivery. The Board is looking to improve Dŵr Cymru Welsh Water’s overall operational performance and to appoint someone with extensive regulatory and environmental experience to help do so.

Sir James confirmed his role does not involve contact with government.

4.2 Dealings in office

Sir James advised the Committee that he did not meet with, nor was he involved

in decisions specific to Dŵr Cymru Welsh Water:

● As Chief Executive of the Environment Agency, he stated he was involved in providing advice to departmental officials on how best to manage and regulate the water sector in England.

● All policy decisions on the overall framework set for the Environment Agency were taken by Defra ministers. The Environment Agency is not a policy-making body.

● Neither himself nor the Environmental Agency provided advice on policy relating to Dŵr Cymru Welsh Water. Policy on the Welsh water sector is devolved to the Welsh government advised by, and regulated by, Natural

Resources Wales - the relevant regulator in Wales.

● The Environment Agency does regulate a small amount of Dŵr Cymru Welsh Water’s operations, i.e. those in England providing drinking water to parts of Herefordshire. He stated was not involved in any decisions specific to the company.

Sir James stated that the Environment Agency is responsible for regulating the environmental performance of most of the companies in England, so during his time as Chief Executive, he dealt with hundreds of company CEO’s and others operating in the environment sector. He added that, though privatised, the water companies in England and Wales are not commercial competitors - as they operate as monopolies within a commercial framework set by the regulator - Ofwat.

Sir James stated he did not have access to sensitive information specific to the company.

4.3 Departmental assessment

The Environment Agency confirmed the details Sir James stated. It also confirmed that Sir James was not involved in decisions specific to Dŵr Cymru Welsh Water, nor did the department consider him to possess sensitive information that may provide an unfair advantage to the company.

The Foreign, Commonwealth and Development office is Sir James’s home department and therefore also provided a view, though it had nothing to add to the Environment Agency’s view.

The Environment Agency did not have concerns with the appointment and recommended the standard conditions.