Ed Davey’s Quick To Cash In After Leaving DECC

By Paul Homewood

 

h/ts and thanks to all those who have given info on Ed Davey’s “other interests”

 

Edward Davey left his role as Secretary of State for Energy and Climate Change in May 2015, after losing his seat in Parliament.

It did not take him long to hawk his services, experience and connections around interested parties. The Advisory Committee on Business Appointments offers this list:

 

1. Patron, Sustainable Futures Foundation

Sir Edward sought the Committee’s advice about becoming an patron of the Sustainable Futures Foundation (SFF), a new charity being established to promote environmental sustainability for the public benefit.

The Committee noted that this was an unpaid role and would involve supporting SFF in developing projects, raising awareness by speaking in public about them – mainly at their own events – and helping raise money for their activities. They noted that he would initially be working to promote SFF’s inaugural project, Solar Team GB.

The Committee advised Sir Edward that it saw no reason why he should not take up this appointment, subject to the following conditions:

• He should not draw on (disclose or use for the benefit of himself or the persons or organisations to which this advice refers) any privileged information available to him from his time as a Minister; and
• For two years from his last day in ministerial office he should not become personally involved in lobbying the UK Government on behalf of the Sustainable Futures Foundation (SFF), Solar Team GB or any of SFF’s projects. Nor should he make use, directly or indirectly, of his contacts in Government and/or Crown service to influence policy or secure Government financing on behalf of SFF or its projects.

The Committee wrote its advice letter to Sir Edward in June 2016, and he took up the role in July 2016.

2. Non Executive Director, Nord Engine Capital

Sir Edward Davey asked for the Committee’s advice about taking up a part-time, paid position as a non-Executive Director with Nord Engine Capital (NEC), a private equity investor.

When considering this application, the Committee took into account that during his last two years in office, Sir Edward did not have any official dealings with NEC nor was he aware of a relationship between NEC and his former department. The Committee also noted that he did not have official dealings with competitors of his prospective employer.

The Committee also took into account that Sir Edward left ministerial office over seven months ago, and that his former department had no propriety concerns regarding this application.

The Committee advised Sir Edward that it saw no reason why he should not take up the appointment subject to the following conditions:

• That he should not draw on (disclose or use for the benefit of himself or the organisation to which this advice refers) any privileged information available to him as a Minister; and
• For two years from his last day in ministerial office, he should not become personally involved in lobbying the UK Government on behalf of Nord Engine Capital, its partners or its clients.

The Committee wrote its advice letter to Sir Edward in December 2015 and the appointment was announced in February 2016.

3. Consultant, MHP Communications

Sir Edward sought the Committee’s advice about a role as a consultant for MHP Communications, assisting with the development of MHP’s business and providing its clients with strategic advice on communications and government relations.

When considering this application, the Committee noted that Sir Edward did not have any contractual dealings with MHP or its competitors in his time as a Minister. It noted that EDF Energy, which Sir Edward had dealings with as a Minister, particularly in relation to Hinkley Point C, is a client of MHP. However, Sir Edward was clear that he would not have any involvement with EDF whatsoever in relation to their generating business prior to the announcement of a final investment decision in relation to Hinkley Point C. The Committee also took into account Sir Edward’s assurance that he would not be required to lobby the UK Government on behalf of MHP or any of their clients in this role.

The Committee also took into account the views of Sir Edward’s former department, which did not have any concerns about the propriety of this appointment.

The Committee advised Sir Edward that it saw no reason why he should not take up this appointment, subject to the following conditions:

• He should not draw on (disclose or use for the benefit of himself or the organisations or persons to which this advice refers) any privileged information available to him as a Minister;

• He should not involve himself in work related to Hinkley Point C or any commercial deal in which DECC is currently involved; and

• For two years from his last day in ministerial office he should not become personally involved in lobbying the UK Government on behalf of MHP Communications, its parent company or its clients.

The Committee’s advice letter was sent to Sir Edward in December 2015 and the appointment was announced in January 2016.

4. Chairman, Mongoose Energy

Mr Davey asked for the Committee’s advice about taking up a part-time, paid appointment with Mongoose Energy as Chairman, having left Government in May 2015.

When considering Sir Edward’s application, the Committee noted that Mongoose Energy grew out of Bath & West Community Energy (BWCE) who did, and still do, have a relationship with DECC. However, Mr Davey’s former department have advised that as Secretary of State, Mr Davey would have met many individuals from the sector during his normal course of business, including those from Mongoose Energy.

The Committee does not believe this appointment could reasonably be interpreted as a reward for decisions he or his former department had made while Mr Davey held ministerial office. However, given the links, between DECC and Mongoose Energy and the possible public perception of the appointment, it is of the view that a waiting period in addition to the standard three-month waiting period for former Cabinet-level Ministers would be appropriate in this instance.

The Committee sees no reason why Sir Edward should not take up this appointment, subject to the following conditions:

• A six month waiting period from his last day in ministerial office;
• for two years from his last day in office, he should not become personally involved in lobbying the UK Government on behalf of Mongoose Energy, its parent companies, its subsidiaries, or its clients; and
• He should not draw on [disclose or use for the benefit of himself or the organisations or persons to which this advice refers] any privileged information available to him as a Minister from his time in Government.

The Committee’s advice letter was sent in September 2015 and the appointment was announced later that month.

5. Independent Consultancy; and commission with Herbert Smith Freehills

Sir Edward asked for the Committee’s advice about setting up an independent consultancy and accepting a commission under that consultancy with Herbert Smith Freehills (HSF), having left Government in May 2015.

Sir Edward’s independent consultancy aims to provide consultancy services in the area of energy and climate change, covering the full spectrum of the energy industry – from renewables to offshore UKCS, from community energy to the UN climate change talks. His aim would be to help organisations to develop thought leadership in the energy and climate change sector, to understand past energy policies and to understand how future policy in the UK, the EU and elsewhere might develop.

The Committee took into account that Mr Davey had some dealings with HSF when they acted for Drax in Judicial Review proceedings against DECC. Mr Davey is not aware of any relationship between DECC and HSF, and during his last two years in office, he did not have any official dealings with any competitors of HSF. Finally, Mr Davey informed us that his consultancy work would not include any lobbying of the UK Government at any level and would not involve use of any confidential information gained as a Minister.

The Committee advised Sir Edward that it saw no reason why he should not establish the consultancy and take up this commission, subject to the conditions that:

• he should not draw on privileged information available to him from his time in Government;

• a three month waiting period from his last day in Ministerial office;

• for two years from his last day in ministerial office, he should not become personally involved in lobbying UK Government on behalf of his new employer, its subsidiaries or its clients;

• he should not involve himself in work related to Hinkley Point C or any commercial deal in which DECC is currently involved; and

• once he has received approval to set up as an independent consultant, he must seek confirmation from the Committee directly that each subsequent individual commission is permissible under the terms of his consultancy before taking it up. If, after enquiry, the Committee takes the view that a commission is, or may be, outside the terms of the consultancy he will be expected to submit a fresh application.

John Wood recused himself from this case.

The Committee’s advice letter was sent to Mr Davey in July 2015 and he took up the commission with HSF in September 2015.

6. Trustee, Tourism for All

Mr Davey asked for the Committee’s advice about becoming a Trustee of Tourism for All, a charity whose mission is to be a centre of expertise on accessible tourism, working for a world-class tourism experience for everyone. This is a part-time, unpaid position.

The Committee advised this appointment be subject to the following conditions:

• that he should not draw on (disclose or use for the benefit of yourself or the organisations or persons to which this advice refers) any privileged information available to you as a Minister;

• For two years from your his day in ministerial office he should not become personally involved in lobbying the UK Government on behalf of Tourism For All.

The Committee sent it’s advice letter in April 2016 and Sir Edward took up the appointment later that month.

https://www.gov.uk/government/publications/davey-edward-secretary-of-state-for-energy-and-climate-change-acoba-recommendation/summary-of-business-appointments-applications-rt-hon-edward-davey

 

Since returning to Parliament after this year’s election, Davey has relinquished his roles at Nord Engine and MHP.

According to the Register of Interests, however, he is still paid £20000 pa for his chairman role at Mongoose, which he estimates equates to 96 hours work a year.

He is also paid £5000 per month by Herbert Smith Freehills.

 

But most intriguing is his own business consultancy, Energy Destinations Ltd, which he set up in September 2015.

During its first year of operation, Energy Destinations turned a profit of £54K.

The only original shareholders were Davey and his wife, Emily, although Davey has now declared that he has transferred his shares to a new company called the John Alban Davey Foundation, whose sole purpose is to receive monies and disburse as necessary for the health, education and well-being of his disabled son, John Alban Davey.

This is no doubt very worthy, and also very convenient and tax efficient. It is presumed his wife still owns her shares, though this is not clear.

 

So who is his business consultancy doing work for? The Advisory Committee list the projects he has applied for permission.

7. Commissions

Since establishing the independent consultancy (in the area of energy and climate change, helping organisations to develop thought leadership in the energy and climate change sector; to understand past energy policies; and to understand how future policy in the UK, the EU and elsewhere might develop), the Committee has advised on the following commissions which have been taken up:

• Macquarie Bank (taken up in September 2015)
• Fit for the Future (taken up in April 2016)
• Work on a project board examining the feasibility of establishing a new energy company (taken up in April 2016)
• ENGIE UK (taken up following advice provided in June 2016)
• Grantham Institutes (LSE) and the Association for Decentralised Energy (taken up following advice provided in October 2016)
• Next Energy Capital (taken up in February 2017)
• INGINE Wave Energy Systems Ltd(taken up in February 2017)
• Gerson Lehrman Group (taken up in February 2017)
• SIT Group (taken up in May 2017)

Most of these commissions appear to be energy related. To be fair, if an MP loses his seat, he is entitled to find employment that matches his skills and experience. You could not expect Davey to get a job as a plumber or work at Macdonalds!

However, prior to taking over from the criminal, Chris Huhne, as Energy Secretary, he had absolutely no experience, training or qualifications in matters relating to energy.

Some might argue that his spell at DECC proves that he still does not understand the energy sector!

So, it seems he has little to offer his clients other than his inside knowledge of how DECC, and its successor BEIS, operate, the contacts he has developed and his ability to lobby and influence public policy. both within the Lib Dem party and without.

The Advisory Committee, of course, insist that he should not use privileged information, blah blah. But in reality they are a toothless watchdog.

Perhaps next time Davey appears on the BBC to help them with their propaganda, they should warn listeners about his vested interests. There again, pigs might fly!