Quotas for women on boards: all the pros and cons in one place

The UK has just voted against an EU-wide quota.

The UK is opposing attempts to impose a 40 per cent quota for women on all boards for companies listed within the EU, and has just recieved enough support to block it. According to the FT, a draft letter signed by nine labour and business ministers said:

We agree with the commission’s stance that there are still too few women on the boards of publicly listed companies

[But] we reiterate that any targeted measures in this area should be devised and implemented at national level. Therefore, we do not support the adoption of legally binding provisions for women on company boards at the European level.

The FT has reported that many businesses are opposed to female quotas, with  Business Europe, the largest employers group in the EU, saying that they fail to address the real problems with equality in businesses.

It's a fraught issue, and over the last few years there's been much back-and-forth about whether quotas damage or promote women's interests. It's irritating to see the same arguments trotted out again and again, so here's a summary of some of the strongest in both directions:

Pros:

1. Here's a pretty strong one to start with: quotas are the quickest and most effective way to ensure more equal numbers of men and women on boards.

2. Quotas force the break up of elite circles that might otherwise remain unchallenged.

3. If women are promoted into positions of power, they can act as positive role models for others.

4. Once on the board, women are more likely to hire more women.

5. Quotas are not disciminatory, they simply correct existing discrimination. Is there existing discrimination? Well yes, if you a) believe that there are as many competent potential female board members as their male counterparts and b) take stock of the current imbalance in numbers.

Cons:

1. Quotas discriminate against the individual men who happen to be running against a woman for a seat.

2. If women are employed through quotas, they will be seen as "token", will be less respected and will have less power.

3. Quotas set women against each other, competing for a certain number of "women's seats", which might destroy co-operation and unity.

4. Instating a quota might lend businesses to view them as a ceiling rather than a floor on the number of women, stalling progress on equality in the long run.

So there they are. Have I missed any? Please leave a comment....

The first female doctor qualifies despite all male board. Photograph: Getty Images.

Martha Gill writes the weekly Irrational Animals column. You can follow her on Twitter here: @Martha_Gill.

Getty
Show Hide image

The tale of Battersea power station shows how affordable housing is lost

Initially, the developers promised 636 affordable homes. Now, they have reduced the number to 386. 

It’s the most predictable trick in the big book of property development. A developer signs an agreement with a local council promising to provide a barely acceptable level of barely affordable housing, then slashes these commitments at the first, second and third signs of trouble. It’s happened all over the country, from Hastings to Cumbria. But it happens most often in London, and most recently of all at Battersea power station, the Thames landmark and long-time London ruin which I wrote about in my 2016 book, Up In Smoke: The Failed Dreams of Battersea Power Station. For decades, the power station was one of London’s most popular buildings but now it represents some of the most depressing aspects of the capital’s attempts at regeneration. Almost in shame, the building itself has started to disappear from view behind a curtain of ugly gold-and-glass apartments aimed squarely at the international rich. The Battersea power station development is costing around £9bn. There will be around 4,200 flats, an office for Apple and a new Tube station. But only 386 of the new flats will be considered affordable

What makes the Battersea power station development worse is the developer’s argument for why there are so few affordable homes, which runs something like this. The bottom is falling out of the luxury homes market because too many are being built, which means developers can no longer afford to build the sort of homes that people actually want. It’s yet another sign of the failure of the housing market to provide what is most needed. But it also highlights the delusion of politicians who still seem to believe that property developers are going to provide the answers to one of the most pressing problems in politics.

A Malaysian consortium acquired the power station in 2012 and initially promised to build 517 affordable units, which then rose to 636. This was pretty meagre, but with four developers having already failed to develop the site, it was enough to satisfy Wandsworth council. By the time I wrote Up In Smoke, this had been reduced back to 565 units – around 15 per cent of the total number of new flats. Now the developers want to build only 386 affordable homes – around 9 per cent of the final residential offering, which includes expensive flats bought by the likes of Sting and Bear Grylls. 

The developers say this is because of escalating costs and the technical challenges of restoring the power station – but it’s also the case that the entire Nine Elms area between Battersea and Vauxhall is experiencing a glut of similar property, which is driving down prices. They want to focus instead on paying for the new Northern Line extension that joins the power station to Kennington. The slashing of affordable housing can be done without need for a new planning application or public consultation by using a “deed of variation”. It also means Mayor Sadiq Khan can’t do much more than write to Wandsworth urging the council to reject the new scheme. There’s little chance of that. Conservative Wandsworth has been committed to a developer-led solution to the power station for three decades and in that time has perfected the art of rolling over, despite several excruciating, and occasionally hilarious, disappointments.

The Battersea power station situation also highlights the sophistry developers will use to excuse any decision. When I interviewed Rob Tincknell, the developer’s chief executive, in 2014, he boasted it was the developer’s commitment to paying for the Northern Line extension (NLE) that was allowing the already limited amount of affordable housing to be built in the first place. Without the NLE, he insisted, they would never be able to build this number of affordable units. “The important point to note is that the NLE project allows the development density in the district of Nine Elms to nearly double,” he said. “Therefore, without the NLE the density at Battersea would be about half and even if there was a higher level of affordable, say 30 per cent, it would be a percentage of a lower figure and therefore the city wouldn’t get any more affordable than they do now.”

Now the argument is reversed. Because the developer has to pay for the transport infrastructure, they can’t afford to build as much affordable housing. Smart hey?

It’s not entirely hopeless. Wandsworth may yet reject the plan, while the developers say they hope to restore the missing 250 units at the end of the build.

But I wouldn’t hold your breath.

This is a version of a blog post which originally appeared here.

0800 7318496