MPs' boardroom jobs in spotlight

The role of non-executive directors is under scrutiny

MPs and peers hold a total of 819 company directorships between them, a new study has shown.

According to Parliament's latest register of financial interests, just 15 Westminster politicians hold more than 150 directorships between them.

MPs with most directorships

Ian Taylor: 8

Tony Baldry: 7

Howard Flight: 7

Andrew Mitchell: 7

John Gummer: 6

Ken Clarke: 6

Geoffrey Robinson: 6

John Thurso: 9*

*John Thurso says only two of his posts are paid

Research of the registers by the Financial Times newspaper comes amid growing questioning after non-executive directors failed to stop the collapse of companies like Enron and WorldCom in the US.

Trade union bosses are now pressing for a new cap on the number of directorships any one person can hold.

Jobs list

Many MPs and peers who have several board seats in fact list their role in a number of inter-linked or subsidiary companies.

The most jobs are held by Liberal Democrat peer Lord Razzall, who listed 21 directorships - although he says that figure gives a misleading picture.

Next is Labour peer Viscount Chandos, who registered 17.

Lord Razzall says he has fallen foul of a misunderstanding

Among MPs, Lib Dem John Thurso lists 9 directorships but he says he receives money from only two of them.

Former Conservative minister Ian Taylor has logged eight directorships, with fellow Tories Tony Baldry and Andrew Mitchell with seven each.

Tory frontbencher Howard Flight also holds seven posts, although he has said he drop some of them because of his promotion to the shadow cabinet.

Former minister Geoffrey Robinson holds six directorships - the most for any Labour MP.

'Too many roles'

Businessman Derek Higgs is currently conducting a government-commissioned review of non-executive directorships.

The Trades Union Congress is reported to be urging Mr Higgs to recommend banning anyone from holding more than five board posts.

The failure of non-executive directors to stop recent financial scandals has fuelled interest in that review.

The TUC questions how MPs and peers can square their interests outside Parliament with serving both voters and company shareholders.

John Monks says politicians should focus on public service

TUC general secretary John Monks told BBC Radio 4's World At One: "These figures I think do alarm many who will look at MPs and peers appearing to use the House of Commons as a base for very lucrative business careers.

"I have no objection to outside interests but when you get up to eight directorships, or in the case of one peer 21 directorships, then what public service can you possibly do and what justice can you do to the non-executiveships they hold?"

'Misunderstanding'

Lord Razzall, a Lib Dem frontbencher, told the programme he in fact spent time being a director of four or five companies which had subsidiaries.

His case was misunderstood as his firm formed companies for other investors, he said.

"The picture that is given of me swanning around the City from directorship to directorship is completely untrue, added Lord Razzall.

The issue was one for business, not politics, argued the peer.

He suggested there should be limits on how many non-executive posts anyone could take on the top 250 UK-listed companies.

Wider experience

Plans for Parliament to end its late night sittings and work to usual office hours have been seen as one threat to MPs and peers having second jobs.

Some politicians argue that experience outside the Westminster village helps them to do their job in Parliament better.

Peers are only paid expenses for sitting in the House of Lords and directorships are often an important boost for their income.

The FT's survey found that Conservatives, in relative terms, hold far more boardroom posts than members of other party.

One in three Tory MPs and one in two Tory peers sits on a board.

But more than one in four Labour peers also hold boardroom posts.