THE Chief Minister has defended the head of the public sector’s new contractual arrangement after backbenchers warned that it could create a “highly unstable situation”.
It was announced earlier this month that Dr Andrew McLaughlin would be employed on a new contract from 1 July with a six-month review period – effectively, a six-month contract with the option to extend.
Chief Minister Lyndon Farnham said he hoped Dr McLaughlin would remain in post “as long as possible” and at least until the next election in mid-2026.
Dr McLaughlin’s initial appointment as interim chief executive was announced a year ago after Suzanne Wylie left the role – which carries a yearly salary of £250,000 – last February after 12 months in office.
Deputy Farnham has been firm that Dr McLaughlin’s new contract will provide stability after five turbulent years in which four chief executives occupied the role.
Reiterating that stance in the States this week, Deputy Farnham said: “I fully expect the chief executive to remain in post until after the next election. The six-month review period included by mutual agreement is to provide flexibility and an opportunity to ensure the arrangements continue to be right for the government and public sector and, of course, Dr McLaughlin.
“It is a rolling contract, and the hope and expectation of both parties is that Dr McLaughlin will remain until at least the next election and beyond.”
Deputy Helen Miles asked: “If the current incumbent, for whatever reason, did not wish to commit permanently, why did he not instruct officials to restart the recruitment process for a permanent head of public service?”
In response, Deputy Farnham said: “The Island and public sector need stability right now. Dr McLaughlin made a very good start in his role as interim chief executive, so, in order to maintain that stability, we didn’t go back and start an open process again. We hope he will stay with us for as long as possible.”
He added that a fixed-term contract was more “sensible” than a permanent contract.
“Members will know that when permanent contracts are entered into with senior staff, they are very difficult to get out of. At that level, we should perhaps look to more fixed-term contracts than permanent contracts, and that’s a discussion we will have in due course,” he added.
Deputy Jonathan Renouf countered that the current arrangement enabled Dr McLaughlin to walk away after six months, triggering a new recruitment process. He said: “I can hear a contradiction emerging in the Chief Minister’s answers. He talks about stability, which implies a longer contract, but then talks about a six-month review. That would surely be a highly unstable situation.”
The States Employment Board has also granted permission for Dr McLaughlin to honour a previous commitment to undertake a non-executive role as chair of the board of the Bank of Gibraltar.
Dr McLaughlin is known for his leadership roles as chief executive of Commercial and Institutional, Non-RingFenced Bank at NatWest, and his tenure as chief executive of Royal Bank of Scotland International in Jersey.
He has also held advisory and non-executive roles, including chair of Prince’s Trust Scotland, member of the CBI Economics and Tax Committee, member of the Fiscal Policy Panel for the States of Guernsey, and visiting professor at the Centre for Globalisation at the University of Nottingham. He holds a first-class degree in Economics and Politics and a PhD in Public Policy.
