The Committee deliberated.

Confirmation hearings: Dr Sushil Wadhwani was examined.

Confirmation hearings: Mr Ian Plenderleith, Monetary Policy Committee, Bank of England, was further examined.

Draft Report [The Monetary Policy Committee of the Bank of England: Confirmation Hearings], proposed by the Chairman, brought up and read.

Ordered, That the Chairman's draft Report be read a second time, paragraph by paragraph.

Paragraphs 1 to 6 read and agreed to.

Paragraph 7 read, as follows:

"We raised with Dr Wadhwani the fact that his replies to our questionnaire relied heavily on the replies given by the existing MPC members in last year's confirmation hearings. The questionnaire is part of our process of assessing whether a candidate fulfils the criteria of demonstrable professional competence and independence from the Government, and the questions are designed to cover a range of economic and monetary policy issues where MPC members would be expected to formulate their own opinions. We were therefore concerned that Dr Wadhwani's approach to our questionnaire cast doubt on his ability to do this. In oral evidence, he explained that, where he agreed with the answers of MPC members, he had used their wording to avoid focusing questioning on differences of expression. We do not agree that this was appropriate, and in any case would have expected the sources to be acknowledged. Upon reflection, Dr Wadhwani accepted this, and we hope that he will remember that he is a member of the MPC as an individual with individual responsibility and independent views. We are satisfied that he does fulfil our two criteria. We are also satisfied that Mr Plenderleith continues to satisfy both these criteria. We would like to thank both candidates for their readiness to take part in our hearings."

Amendment proposed, in line 11, to leave out from "this" to "We" in line 13, and insert "We regret that we are unable to confirm Dr Wadhwani's appointment on the grounds that we do not feel that he has shown the necessary personal independence to serve on the MPC either in his written answers to our questionnaire or in his oral evidence".—(Mr Brian Sedgemore.)

Question put, That the Amendment be made.

The Committee divided.

Paragraph agreed to.

Paragraph 8 read and agreed to.

Resolved, That the Report be the Fifth Report of the Committee to the House.

Ordered, That the Chairman do make the Report to the House.

[Adjourned till tomorrow at a quarter past Ten o'clock.