International Women's Day

My Lords, this debate is becoming an annual fixture in the business of the House, and quite right too. So far, unfortunately, it has not led to any significant, substantive progress in improving the opportunities for women to contribute fully to the economic prosperity of the country. By contrast with the UK, in the developing world there is widespread and growing acceptance of the vital role that women have played in improving wealth creation, as the noble Baroness, Lady Hayman, remarked. The Economic Affairs Committee is completing its study on overseas development aid, and the evidence it has received shows irrefutably how important women are as economic drivers. Here, I must again draw your Lordships' attention to the outstanding contribution of the UK-based charity, Camfed. For more than three generational cohorts, it has helped to improve the status and educational attainment levels of women in many parts of Africa. This, in turn, has generated tangible economic benefits. The progress in Africa has not been emulated in the UK. Soon after assuming office, very commendably the coalition Government set up the Davies inquiry into gender representation on the boards of the FTSE 100 companies. It reported a year ago, and we all look forward to hearing what the noble Lord, Lord Davies, will say later in this debate. It called for a modest 25 per cent of women directors by 2015. Although much lip service has been paid to that principle, even that low voluntary target is unlikely to be reached by that date. What increases in women's board representation there have been have been mainly in non-executive rather than executive director posts. Shamefully, 11 per cent of FTSE 100 companies still have all-male boards. Despite the very poor record in gender balance in the composition of the current Cabinet, it is interesting that the Prime Minister has expressed concern at the lack of progress in improving the participation of women in the higher ranks of business. On 12 February, he was quoted in the Observer as saying: "““It's about quality … Not just equality … if we fail to unlock the potential of women in the labour market, we're not only failing those individuals, we're failing our whole economy””." He hinted at the possible introduction of gender quotas for company boards after his trip to Scandinavia in February. Norway's quota system has been a dramatic success story, with a 40 per cent target being achieved in less than 10 years. The UK has fought shy of compulsory quotas, as in the Davies report. Some business leaders have decried the use of quotas. I must say that I am rather disappointed that the noble Baroness, Lady Bottomley, has joined them. It must be emphasised that those opposing quotas are simply airing their prejudice, against all the evidence. They have no factual evidence whatever to validate their views. Supporting evidence to the contrary is available. The proof of the efficacy of compulsory quotas is not confined to Norway and elsewhere in Europe. There is evidence from within the UK itself that quotas work. The Patten reform introduced to the recruitment procedures of the RUC and the PSNI to ensure a much higher proportion of Catholic police men and women has been very successful. It also had the significant beneficial side-effect of substantially increasing the proportion of women recruits, which was reported to have more than doubled from 12.6 per cent to almost 26 per cent in the 10 years to October 2010. The drawing-up of proper job specifications by the PSNI, as Patten required, not only led to a better community balance within police ranks but significantly enhanced women's opportunities. The coalition Government should take this evidence into serious consideration. They cannot question the evidence, because the review was introduced by Owen Paterson, the Secretary of State for Northern Ireland. The Prime Minister should now take account of this UK experience and take positive action on women's directors on the boards of major companies. As Prime Minister, he should set an example by announcing in the Queen's Speech how he hopes to achieve, let us say, a proportion of 40 per cent women Cabinet Ministers by a particular date.