Export Guarantees Advisory Council:
Terms of Reference
1. The Export Guarantees Advisory Council ("the Council") has been established under Section 13 of the Export and Investment Guarantees Act 1991 (external site) ("The Act"). Its statutory purpose is to give advice to the Secretary of State, at his request, in respect of any matter relating to the exercise of his functions under the Act. In particular, the Secretary of State is required to consult the Council in exercising his duty under Section 11(2) of the Act (in relation to reinsurance).
2. This note sets out terms of reference for the Council in respect of:
- 2.1 those matters on which the Secretary of State wishes to have the advice of the Council, and the broad procedures for giving such advice;
- 2.2 the handling of advice on issues in relation to which a Council member may have a business interest; and
- 2.3 the need for members of the Council to carry out their duties in such a way as to maintain the values and standards of public service.
Scope of and Procedures for Giving Advice
3. The Council’s broad remit is to provide advice on the principles that should guide the Export Credits Guarantee Department’s (ECGD) pursuit of the aims and objectives set out in its Mission Statement, and how these principles should inform its business policies. The Council will also advise on the drafting of the statement of these principles.
4. The Council will not be asked to give advice on any individual cases, transactions or markets.
5. The Council will normally provide its advice to ECGD, through which the Secretary of State is empowered to exercise and perform his main statutory functions under the Act. The main areas on which the Council or individual members will be asked to provide advice are as follows:
- 5.1 ECGD’s risk management policies and whether these are properly directed to the achievement of the business and financial targets specified by Ministers from time to time;
- 5.2 ECGD’s marketing and product development policies and whether these adequately address the needs of small and medium sized firms as well as ECGD’s existing customer base;
- 5.3 the ability of ECGD to compete fairly with overseas Export Credit Agencies;
- 5.4 ECGD’s stance relative to the private financial services and capital markets and whether this is complementary rather than competitive, specifically in relation to reinsurance pursuant to Section 11(2) of the Act;
- 5.5 ECGD’s policies for ensuring that it commands a high reputation for fairness, openness and integrity with Parliament, the public and its customers; and
- 5.6 ECGD’s business policies and whether these support the Government’s policies for good environmental standards, the promotion of sustainable economic development in emerging markets, and good governance.
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6. The minutes of the Council’s meetings will be made available to the public on request, and published on ECGD’s website, unless they contain commercially sensitive information. The Council will review ECGD’s performance in relation to its statement of Business Principles, and may propose changes to Ministers, to ensure that the principles continue to address the objectives in ECGD’s Mission Statement.
7. The Council will publish an annual report of its proceedings, to be published within ECGD’s Annual Report to Parliament*.
8. Advice will usually be given at regular Council meetings - about 4-6 per year – to ECGD, who will provide the Council Secretariat and will make an agreed record of the meetings of the Council. The Council will be free to address its views directly to the Secretary of State or the Minister for Trade on subjects which it deems appropriate.
Legal Proceedings
9. Although legal proceedings by a third party against individual board members of advisory bodies are very exceptional, a Council member may be personally liable if he or she makes a fraudulent or negligent statement which results in a loss to a third party. The Government has provided a 'letter of comfort' to Advisory NDPB members. If a Council member has provided advice honestly, reasonably, without negligence and in good faith ECGD will provide an indemnity against personal civil liability.
Public Service Values
10. Members of the Council are expected to:
- 10.1 observe the highest standards of impartiality, integrity, and objectivity in relation to the advice they provide; and
- 10.2 be accountable to the Secretary of State for the Council's activities and for the standard of advice they provide.
Standards in Public Life
11. All Council members should:
- 11.1 follow the Seven Principles of Public Life set out by the Committee on Standards in Public Life (annexed);
- 11.2 comply with the terms of reference, and ensure they understand their duties, rights and responsibilities, and are familiar with the function and role of the Council and any relevant statements of Government policy. New Council members should attend an initial briefing session with ECGD;
- 11.3 neither misuse information gained in the course of their public service for personal gain or for political purpose, nor seek to use the opportunity of public service to promote their private interests or those of connected persons, firms, businesses or other organisations. Documents provided by ECGD for use in Council meetings should never be disclosed to third parties without the prior consent of ECGD; and
- 11.4 not hold any paid or high-profile unpaid posts in a political party, and not engage in specific political activities on matters directly affecting the work of the Council. When engaging in other political activities, Council members should be conscious of their public role and exercise proper discretion.
Declaration of interest
12. To avoid any suggestion of Council members being influenced, or appearing to be influenced, by their private or business interests in the exercise of their public duties members should declare an interest in relation to any advice they may give. A declaration of interest will not preclude that member from giving advice, but it should be included in the agreed record of the meeting. Exceptionally, if a Council member considers that to give a declaration of interest may compromise their position in any way, the member should discuss it with the Chief Executive of ECGD before the meeting.
13. Council members should declare directorships and executive appointments held, and any substantial shareholding or interest held by a member, or member of his/her immediate family **. For the purposes of this declaration a substantial shareholding is defined as shares in any one company worth more than £50,000, or more than 1% of the share capital of any company. A Register of Interests will be held by the Council Secretary to whom Council members should give the relevant information, keeping it up to date. The Register will be open to the public upon request.
* From 2000/01
** Defined as Partner and Children under 18 years of age.
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ANNEX A
The Seven Principles Of Public Life
Selflessness
Holders of public office should take decisions solely in terms of the public interest. They should not do so in order to gain financial or other material benefits for themselves, their family, or their friends.
Integrity
Holders of public office should not place themselves under any financial or other obligation to outside individuals or outside organisations that might influence them in the performance of their public duties.
Objectivity
In carrying out public business, including making public appointments, awarding contracts, or recommending individuals for rewards and benefits, holders of public office should make choices on merit.
Accountability
Holders of public office are accountable for their decisions and actions to the public and must submit themselves to whatever scrutiny is appropriate to their office.
Openness
Holders of public office should be as open as possible about all the decisions and actions that they take. They should give reasons for their decisions and restrict information only when the wider public interest clearly demands.
Honesty
Holders of public office have a duty to declare any private interests relating to their public duties and to take steps to resolve any conflicts arising in a way that protects the public’s interests.
Leadership
Holders of public office should promote and support these principles by leadership and example.
EGAC information
