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2.3 Senator B.E. Shenton of the Minister for Treasury and Resources regarding selection process procedures for directors of Jersey Post, commitment sought and remuneration:
Would the Minister explain the procedures utilised in the selection process for directors of Jersey Post and inform Members of both the number of hours per week commitment that is anticipated for this position and details of the proposed remuneration?
Senator T.A. Le Sueur (The Minister for Treasury and Resources):
In the appointment of a board of directors the post of chairman is a key position and that appointment will be subject to a rigorous and impartial process following an advert in the local press. Following receipt of applications, a short list of candidates was interviewed by a panel, which I chaired with the assistance of a professional firm of recruitment consultants. After due consideration of those candidates, an appointment was made. The original appointee subsequently withdrew his position and, following that, Mr. Liston was nominated for the post on the recommendation of the previous Finance and Economics Committee. He was one of the original candidates and has shown a wide track-record and performed very well in the original interview process. Ensuring standards of corporate governance requires a very effective board and, following that appointment of chairman, the chairman designate then recommended to me and the former Committee those people who he thought had the right qualities to put together to make a suitable board. Those Members' names are now included in the proposition before the House for debate later on in this year and I agreed to their nomination for that post. Fees for those directors on incorporation were agreed in conjunction with recruitment consultants, bearing in mind the charges applicable locally, and the market conditions. The chairman will receive fees of £35,000 a year, and the non-executives will receive £12,500 a year. The executive directors will receive no fees other than their ordinary annual salaries. The workload of the chairman is expected to be about 35 days a year and that of the other non-executive chairman, directors about 20 days a year. Those fees are regarded by the recruitment consultants as offering value for money.
- Senator B.E. Shenton:
Was the Appointments Commission involved in the selection process, given that the chairman of the Jersey Appointments Commission and the chairman of Jersey Post are now one and the same person?
Senator T.A. Le Sueur :
The Appointments Commission did consider this at their meeting in October 2004 and I gave details of that in an answer to Deputy Baudains in a question to the States last year. But basically the agreement of the Appointments Commission would not normally extend to that of a public company.
- Deputy R.G. Le Hérissier:
Notwithstanding the excellent credentials in many respects of the person, would the Minister not acknowledge that it is a very dangerous precedent to set that an existing managing director, already very heavily involved in that and other positions, is now going to be directly involved in running another major service?
Senator T.A. Le Sueur :
On the contrary, the appointment was made with the full knowledge and consent of the board of directors of the Jersey Electricity Company who believe it is in the best interests of that company that the executive directors of JEC should have wider experience and should participate in other services to the community, Sir. Far from being a hindrance, it is regarded as a help.
- Senator B.E. Shenton:
Does the Minister believe that the appointment opens the Assembly up to allegations of cronyism?
Senator T.A. Le Sueur :
No. The appointment was made, as I say, by a rigorous process after a selection panel and clear evidence of suitability of a candidate for the post.
- Deputy R. G. Le Hérissier:
Can the Minister confirm that there was indeed an open advertisement process and how many people applied and were there, for example, people who applied who had tremendous breadth of experience, not necessarily on-Island.
Senator T.A. Le Sueur :
I cannot say how many applied but there was certainly a short list of 5 for the post, which included people from off-Island. After consideration, although some of the off- Island candidates would have had qualities, I believe that this post requires someone who is on the Island for the majority of the year should any unforeseen circumstances require his presence.