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Monday, June 02, 2008

Treasury Neglect and Incompetence

In a worrying sign of Treasury incompetence and neglect, that bodes ill for its handling of the economy, it seems that the Treasury has allowed the contracts for three Bank of England Governors to expire.

John McFall, chairman of the Treasury Select Committee, is none too impressed with the slack attitude of the Treasury. He used the polite phrase "surprise and concern" to express his displeasure on hearing the news.

The three year directorships of Arun Sarin, Paul Myners and Geoffrey Wilkinson expired last week, leaving the members of the Bank's court in limbo.

At the eleventh hour the Treasury called each executive to assure them that their contracts would be renewed in due course.

Pretty pathetic, by even this government's standards of incompetence!

To add to the list of Treasury failings, wrt their handling of the Bank of England, they have yet to find a replacement for outgoing deputy governor Rachel Lomax, who leaves at the end of June.

John McFall is quoted in The Telegraph:

"The court is a key part of the Bank. It is the body which provides invaluable advice to the Governor and scrutinises the Monetary Policy Committee.

It is hugely important - and it is essential its members get adequate advance notice of their future and their positions.

This is a cause for surprise and concern, given that the Treasury has said it would be focused in the future on making timely appointments to the Bank
."

One Treasury insider told The Telegraph:

"What is particularly worrying is everyone assumed the problem in previous years had just been that Gordon Brown tended to take a long time taking his decisions, and that things would get better under a new Chancellor.

If anything, things are now worse. There is an element of neglect here
."

This ongoing neglect and incompetence by the Treasury does not bode well for the economic stability/prosperity of the UK.

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