Decision

Summary of business appointments applications - Sir Derek Jones

Updated 14 December 2017

1. Chair of the Advisory Council, The Prince’s Trust Cymru

Sir Derek sought the Committee’s advice about a position with The Prince’s Trust Cymru, a charity which works with young people from deprived backgrounds to help improve their life chances. His role as Chair is to offer advice on the whole range of the Trust’s activities including strategic direction, fundraising, investment and risk management.

When considering this application the Committee took into account that this is an unpaid, part-time role. It also noted that this role may involve some contact with Welsh Government but would not require him to lobby the Welsh Government. The Permanent Secretary for the Welsh Government was contacted with regard to this application, who had no concerns with him taking up this role.

As a former Permanent Secretary, a three-month waiting period from Sir Derek’s last day in Crown service is consistent with the approach the Committee has taken to other Crown servants of equivalent standing.

The First Minister of Wales accepted the Committee’s advice that, in accordance with the Government’s Business Appointment Rules, the appointment be made subject to the following conditions:

• he should observe a waiting period of three months from his last day in Crown service;
• he should not draw on (disclose or use for the benefit of herself or the organisations to which this advice refers) privileged information available to him from his time in Crown service;
• for two years from his last day in service, Sir Derek should not become personally involved in lobbying the Welsh Government on behalf of the Prince’s Trust Cymru or make use, directly or indirectly, of his contacts in Government and/or Crown service to influence policy or secure funding on behalf of the Prince’s Trust Cymru.

Lord German recused himself from this case.

The letter containing the final decision was sent in April 2017 and the appointment was taken up later that month.

2. Special Adviser, Cardiff University

Sir Derek Jones sought advice under the Business Appointment Rules about taking up an appointment as a Special Adviser at Cardiff University.

The Committee noted that this is a paid, part time role. Sir Derek described his role as providing advice on the formation of partnerships between the University and business; to advise on any “political/governmental backdrop” relevant to such partnerships; identify possible partners; and, where appropriate, negotiate suitable agreements with the companies concerned.

When considering the application, the Committee took into account the factors listed in the advice letter, including:

• Before becoming Permanent Secretary in 2012, Sir Derek worked at the University. He stated that this “new role is in effect a part-time return to similar work, but in an advisory, rather than executive capacity.”
• Sir Derek confirmed that during his time in Office, he attended academic events held by Cardiff University. He has also met with Colin Riordan, Vice Chancellor of Cardiff University in his role as Chair of ‘Universities Wales’ at events (Universities Wales represents the interests of universities in Wales and Mr Riordan represents them at key meetings and conferences).
• Sir Derek and the Welsh Government confirmed that he had some involvement in policy discussions about Higher Education in Wales, its structure, funding and governance generally. However, they also confirmed he had no involvement in relation to any decisions that concerned Cardiff University specifically.
• Whilst Sir Derek told the Committee that; “Cardiff University will have received mainstream funding from the Welsh Government via the Higher Education Funding Council,” he and the current Permanent Secretary for the Welsh Government have confirmed he was not personally involved in these decisions and is not aware of the details. He confirmed he had no involvement in the award of grants and has no commercially sensitive information that would give an unfair advantage to Cardiff University.
• The University has confirmed it is aware of Sir Derek’s obligations to seek advice from the Committee on this role and will follow any conditions imposed, including the ban on lobbying the Welsh Government.
• The Permanent Secretary for the Welsh Government has no concerns about this appointment.

In considering what conditions would be appropriate for this application the Committee noted that Sir Derek’s role at the University will focus on advice relating to partnerships with business. It expressed some concern about the potential for perception that Sir Derek could use contacts within business that have been gained whilst he was in office. The Committee therefore drew Sir Derek’s attention to the first condition, which would prevent any privileged or sensitive information in this respect from being exploited.

The First Minister of Wales accepted the Committee’s advice that, in accordance with the Government’s Business Appointment Rules, the appointment be made subject to the following conditions:

• Sir Derek should not draw on (disclose or use for the benefit of himself or the organisation to which this advice refers) any privileged information available to him from his time in the Crown Service; and

• for two years from his last day in service, he should not become personally involved in lobbying the Welsh Government on behalf of Cardiff University, its entities, or its partners, or make use, directly or indirectly, of his contacts in Government and/or Crown service to influence policy or secure funding on behalf of Cardiff University, its entities, or its partners.

Lord German recused himself from this case.

The letter containing the Committee’s advice was sent in July 2017 and the appointment was taken up in October 2017.

3. Non-executive Director, board of IQE plc

Sir Derek Jones sought advice under the Business Appointment Rules about taking up an appointment as a Non-executive Director on the board of IQE plc (IQE).

This is a paid role, involving 1 or 2 days per month.

Sir Derek informed the Committee that the chief executive of the company, who Sir Derek has known for over 25 years, approached him informally about the role after it had been announced that he would shortly be leaving government. Sir Derek subsequently put a note on the record of the approach (in mid-November 2016) and asked that he saw no papers concerning the company for the remainder of his time in post. After he had left the civil service, he subsequently met the chairman of the company and later received an offer of a non-executive role on the board, subject to advice from ACOBA.

Sir Derek stated that he had no direct contractual dealings or any other type of official contact with IQE as Permanent Secretary.

The Welsh Government has explained that various grants were awarded to IQE during the period that Sir Derek was Permanent Secretary. The details are set out in the Committee’s advice letter.

The Permanent Secretary for the Welsh Government considered this application and concluded that, as Sir Derek has had no involvement in dealings with IQE for a number of years and, since November 2016, has not seen any papers relating to it, she had no concerns that this appointment could be seen as improper.

The Committee concluded that the risk of this appointment affording IQE an unfair advantage is low. The Committee noted that Sir Derek’s last day in post was 3 February 2017 and that he would not take up the post until 1 November 2017, which is a gap of 10 months since leaving office. Further, having been approached about a potential future role in November 2016 he deliberately put arrangements in place to ensure that he saw no papers concerning the company for the remainder of his time in post. This reduced the likelihood of him being aware of relevant sensitive information. In addition, the nature of his proposed role with IQE is to advise the company on governance and he has been very clear with it that his appointment would be subject to restrictions on lobbying and making use of contacts.

The Committee noted that Sir Derek is seeking to join a company that was in receipt of Government grants during the time that he was Permanent Secretary. It concluded that the risks suggested by this are significantly mitigated by the fact that he was not involved in the award of the grants and because he had no personal dealings with the company in his capacity as Permanent Secretary. The Committee also noted that any award of government funds should have been administered in line with established procedures in place in the Welsh Government and Innovate UK. Had there not been a long gap between Sir Derek leaving office and his intended start date in this role, a significant waiting period would have been appropriate, given the connections between the Welsh Government and the company.

The First Minister of Wales accepted the Committee’s advice that, in accordance with the Government’s Business Appointment Rules, the appointment be made subject to the following conditions:

• Sir Derek should not draw on (disclose or use for the benefit of himself or the organisation to which this advice refers) any privileged information available to him from his time in the Crown Service; and

• for two years from his last day in service, he should not become personally involved in lobbying the Welsh Government on behalf of IQE plc or its subsidiaries or partners, or make use, directly or indirectly, of his contacts in Government and/or Crown service to influence policy or secure funding on behalf of IQE plc or its subsidiaries or partners.

Lord German recused himself from this case.

The letter containing the Committee’s advice was sent in September 2017 and the appointment was announced in November 2017.