Jersey Competition Regulatory Authority - appointment of non-Executive Chairman

STATES OF JERSEY

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JERSEY COMPETITION REGULATORY AUTHORITY: APPOINTMENT OF NON-EXECUTIVE CHAIRMAN

Presented to the States on 20th July 2004 by the Economic Development Committee

STATES GREFFE

PROPOSITION

THE STATES are asked to decide whether they are of opinion

in a cc ordance with Article  3(1)(a) of the Competition Regulatory Authority (Jersey) Law 2001, to appoint

the Rt. Hon. The Lord Kingsland as a member and non-executive Chairman of the Jersey Competition Regulatory Authority for a period of 3  years with effect from 20th July 2004.

ECONOMIC DEVELOPMENT COMMITTEE

REPORT

1. T h e States approved the Competition Regulatory Authority (Jersey) Law in November2000. It received Royal Assenton14thMarch and came into force on 1st May2001.
2. U n der Article 3(1)(a) it isfortheStatestoappointonememberoftheAuthorityas its Chairman uponthe recommendationoftheEconomicDevelopmentCommittee.Othermembersof the Authority are then appointed by the Committee, after consultation with the member appointed as Chairman. It is the Committee's intention to appoint 2 otherNon-Executivemembers, once a Chairman has been appointed.
3. U n der Article 4(2) a membershallbe appointed for a period not exceeding 5 years and upon expiry o such period shall be eligible for reappointment.
4. T h e Committee enlisted the help of search consultants,VeredusExecutive Resourcing, inorderto identify potential candidatesasnon-executivemembersoftheAuthority(JCRA).The brief was to find individuals whocould demonstrate the ability tounderstandcomplexcommercial,legalandeconomic regulatory issues and an ability toberesponsiblefortakingforwardand maintaining momentumon priority projects. Important attributes were the ability, stature and personal authority to establish credibility with the executive and key stakeholdersandbe respected by peer groups on the wider international scene.
5. A d vertisements in the national and localpress and theEconomist,together with Veredus'own database, yielded an impressive fieldofcandidates.Outof71 applications submitted, 14were shortlisted. It wasat this stage, as a result ofsignificantweaknesses in governance issues identified inan Internal Audit report of the JCRA, that the proposition to reappoint the previous Chairman was withdrawn. Following consultation withand approval by the AppointmentsCommission, it was agreed that inthecircumstances and in view ofthe high calibre of the shortlisted candidates, the position ofChairman should notbe advertised separately and that the non-executive candidates be offered the opportunity to putthemselves forward for Chairman.
6. A s election boardwasformed,comprisingthePresident of theCommittee, the Acting Chief Executiveof Economic Development and a memberof the AppointmentsCommission. With assistance from Veredus, a shortlist of 3 candidates wasprepared and interviews took placeon July 6th and 7th. TheAppointments Commission has actively participated throughout the recruitment process.
7. A curriculum vitaefortheRt.Hon.The Lord Kingsland is attached.
8. T h e Committee is of the opinion that under the guidance and leadership of the Rt. Hon. The Lord Kingsland, the JCRA will bere-establishedas a credibleandcompetentAuthority.Furthermore, the governance issues raised during the recent Audit willbeaddressedas a matter of high priority.
9. A s for the financial implications of this proposal,anindependentremunerationsurvey has been carriedout on behalf ofthe Committee into the proposedremunerationfor the incomingnon-executive Chair and how it compares with that offered by a numberof comparable organisations and elsewhereacrossthe public sector in the U.K. The conclusion of the survey is that the fee of£37,000, which has been determined bytheCommittee,tobe paid by the JCRA to the Chair is fairand equitable in the current market for a non-executive Chair of a publicbody.
10. A c cordingly, the EconomicDevelopmentCommitteerecommends that the States appointthe Rt. Hon. The Lord Kingslandas a memberandnon-executiveChairmanofthe Jersey Competition Regulatory Authority for a period of 3 years commencingon 20th July 2004.
11. T h ere are no financial ormanpowerimplications for theStatesother than those detailed in this report.

APPENDIX

The Rt. Hon. The Lord Kingsland

Before completing his legal studies, Lord Kingsland's intellectual interests were in the field of economics, a subject in which he completed 3 university degrees. His doctoral thesis at Oxford concerned the operation of markets in a self-managed economy – a study which he later expanded into a book published by Oxford University Press. Lord Kingsland also spent 3 years at the International Bank for Reconstruction and Development, a specialised agency of the United Nations, in Washington.

On returning to the United Kingdom, Lord Kingsland was appointed Leverhulme Research Fellow at Sussex University, subsequently became a lecturer in law there, following his call to the Bar in 1969, and at the same time, began to practise at the Bar in the field of European competition law.

In 1979 Lord Kingsland was elected Member of the European Parliament for Shropshire and Stafford and served until 1994. Throughout his time in the European Parliament, Lord Kingsland served on the Parliament's Legal Affairs Committee (becoming Chairman in 1987) and has played a prominent role in all matters concerning competition law.

Lord Kingsland continued to practise at the European Competition Bar to the extent that his parliamentary responsibilities allowed. He appeared in 2 of the leading cases of that decade, Stanley Adams -v- The Commission [1985] ECR 3539, on confidentiality, and Ahlstrom and Others -v- The Commission [1988] ECR 5193, concerning extra-territoriality. During that time he also contributed to the European Community editions of Halsbury's Laws of England.

On his departure from the European Parliament, Lord Kingsland returned to full-time practise at the Bar and, at the same time, was appointed to the House of Lords. As far as his legal work is concerned, while he continues to advise on competition law, his main practise has expanded into the area of environmental law. Chambers Guide to the U.K. Legal Profession for the years 2002/3 and 2003/4 indicates his rating in this field.

In 2002, he was appointed Chairman of Plymouth Marine Laboratory, clg., a recently privatised marine research institution, which is a world leader in the science of estuarine and continental shelf systems.

Meanwhile, in the House of Lords, Lord Kingsland served for a year as Chairman of Sub-Committee  F of the European Communities Select Committee, before being appointed Shadow Lord Chancellor in 1997, a position which he continues to hold. In that capacity he has played a leading role on all competition legislation introduced by the Government, a great deal of which, such as the Competition Act, 1998, and the Enterprise Act, 2002, is concerned with competition in the public utilities sectors.

As far as the Shadow Lord Chancellorship is concerned, it is unpaid and mainly concerns issues which are not party political. The fact that he has continued to sit as a Crown Court Recorder (a Judge of the Crown Court) throughout his time in the position is powerful evidence that the position of Shadow Lord Chancellor is not regarded as in any way compromising the independent judgement of the person holding the office.

As far as his legal practice is concerned, its recent movement away from mainstream competition law into environmental law would be an advantage in performing the role of Non-Executive Member. On the one hand, since  Lord  Kingsland would be  unlikely  to  be  representing  organizations  subject  to  the  jurisdiction of  the Competition Regulatory Authority, there is little likelihood that he might be conflicted out of any matter. On the other hand, his familiarity with environmental regulatory regimes, in addition to competition regulatory regimes, ensures that he will have a thorough grasp of the legal and public interest issues to which modern regulatory systems give rise.

Curriculum Vitae

Born: 1 .1 . 4 2 . Christopher James Prout

Educated: S e v enoaks School; Manchester University (BA); T h e Q  u e en  's College, Oxford (B.Phil., D. Phil.);

T h e M  i d d le Temple (Barrister at Law).

Scholarship: E n glish-Speaking Union Fellow, Columbia University, NY 1963-64.

Military: T . A . Service: OUOTC, 1966-73; 16/5 The Queen's Royal Lancers 1974-82; Staff Officer, 3rd

Armoured Division, 1982-88; RARO, 1988-2002.

Career: S t a f f Member, International Bank for Reconstruction and Development, Washington DC, 1966-

69.

B a r ri s te r a n d Lecturer in Law, Sussex University 1969-79.

B a r ri s te r a n d Member of the European Parliament for Shropshire and Stafford, 1979-94; Chief

Whip, the Conservative Group, 1983-87; Chairman, European Parliament's Legal Affairs Committee, 1987; Leader of the Conservative Group, 1987-94.

B a r r is te r 1 9 94-date (4 Bream's Buildings, EC4A 1AQ , until 2002 and thereafter, 2 Harcourt

Buildings, London, EC4Y 9DB).

C r o w n C o u r t Recorder 1997-date

S h a d o w L o rd Chancellor, 1997-date.

Publications: M arket Socialism in Yugoslavia, OUP, 1985; Halsbury's Laws of England, 4th edition (contrib.),

Vols. 8, 51 and 52, Butterworths, 1986 and 1995; various chapters and articles in books and academic journals.

Appointments: Territorial Decoration (1987); Queen's Counsel (1988); Knight Bachelor (1990); Privy

Counsellor (1994); Baron (1994); Bencher, Middle Temple (1996); Deputy Lieutenant, Shropshire (1997); Recorder (Wales & Chester Circuit) 1997-date; Master of the Garden (Middle Temple), 1999-date.

Corporate: C h a irman, Plymouth Marine Laboratory, clg. 2002-date.