The TSC has already been granted veto rights by the Chancellor over the appointment and dismissal of the chairman of the Office of Budget Responsibility (OBR).
In a speech to the Institute of Government (IoG), Tyrie, Conservative MP for Chichester, said this power should be extended to other select committees in order “to restrain and reverse the growth of executive patronage”.
He said that select committees should play a far greater role in confirming the appointments of the most senior regulators, ombudsmen, inspectors and constitutional watchdogs.
In addition, he highlighted that the power to veto dismissal was important in order to protect a role’s independence.
Tyrie said that the power to veto the appointment of a BoE governor was vital, given that the new regulatory powers of the Bank will make it “by far the most powerful quango in the land”.
He said: “Select committees should have a say in appointments where the credibility of the body in question depends upon its independence from government.
“This can be illustrated by looking at Treasury-related appointments. Independence is manifestly needed for the OBR. On the same grounds, similar treatment could be applied to the governorship of the Bank of England.”
He said that this will be one of the issues the TSC examines in its forthcoming inquiry into the accountability of the BoE.
In addition, Tyrie said that the power of the TSC was increasing the pressure of the government to respond to its serious concerns around its reforms to financial regulation.
These concerns include that the government’s timetable is too ambitious, that there is insufficient detail about the powers being given to the BoE, and that greater thought is needed on the accountability of the new regulators and the role of government in the new structure.
