Background on Dr Sentance

7. Prior to his appointment to the MPC, Dr Andrew Sentance was Chief Economist and Head of Environmental Affairs at British Airways Plc. Before that, he was Director of the Centre for Economic Forecasting at the London Business School. We considered Dr Sentance's previous experience in more detail when we examined his initial appointment.[8]

Dr Sentance on the MPC

8. Dr Sentance's first appointment to the MPC was announced on 13 July 2006, and took effect from 1 October 2006.[9] His first term will end on 31 May 2008. His initial appointment was for the unusually short period of 20 months because he filled a vacancy on the MPC created by the untimely death of David Walton.[10] We took evidence from Dr Sentance on his initial appointment on 12 October 2006, and published a Report thereafter in which we stated that we were satisfied that he fulfilled our criteria for appointment.[11] On 30 January 2008, the Chancellor of the Exchequer announced that Dr Sentance had agreed to serve a second term on the MPC, on this occasion for three years beginning on 1 June 2008.[12]

9. As a member of the MPC, Dr Sentance has sought to contribute to public debate on UK monetary policy, through public speeches, interviews, regional visits, business briefings and educational activities. He has given six public speeches, and undertaken 10 two-day regional visits and 60 company visits and business briefings, as well speaking at a number of schools and universities.[13]

10. Like that of all current 'external' members of the MPC, Dr Sentance's position on the MPC is not full-time.[14] Alongside his work on the MPC, Dr Sentance is a part-time Professor at the University of Warwick, based at the centre for the Study of Globalisation and Regionalisation and also a Member of the Commission for Integrated Transport, which provides independent advice to the Government on transport policy issues.[15]

Our evidence

11. During our evidence from Dr Sentance on his re-appointment to the MPC, we asked him about a range of matters, including:

• his own contribution to the work of the MPC;
• links between the MPC and the wider public, including in particular Dr Sentance's work with schools and universities;
• links between the 'external' members of the MPC and the other work of the Bank of England; and
• conditions in the real economy and the challenges for the Office for National Statistics in providing accurate data on the real economy.

Conclusions

12. We are satisfied that Dr Andrew Sentance continues to meet the criteria by which we assess those appointed to the MPC—namely, personal independence and professional competence—and we wish him success in his continuing role.

9   HM Treasury press notice 52/06, "Appointment to the Monetary Policy Committee", 13 July 2006 Back

10   HC (2005-06) 525-I, para 10; Dr Sentance's answer to questionnaire, Q 2 Back

11   HC (2005-06) 1595-I, para 15 Back

12   HM Treasury press notice 08/08, "Appointment to the Monetary Policy Committee", 30 January 2008 Back

13   Dr Sentance's answer to questionnaire, Q 2 Back

14   HC (2006-07) 299-I, paras 69-70 Back

15   Dr Sentance's answer to questionnaire, Q 4 Back