John Davies (businessman)
Encyclopedia
John Emerson Harding Harding-Davies, MBE
Order of the British Empire
The Most Excellent Order of the British Empire is an order of chivalry established on 4 June 1917 by George V of the United Kingdom. The Order comprises five classes in civil and military divisions...

, PC
Privy Council of the United Kingdom
Her Majesty's Most Honourable Privy Council, usually known simply as the Privy Council, is a formal body of advisers to the Sovereign in the United Kingdom...

 (8 January 1916 – 4 July 1979) was a successful British
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 businessman who served as Director-General of the Confederation of British Industry
Confederation of British Industry
The Confederation of British Industry is a British not for profit organisation incorporated by Royal charter which promotes the interests of its members, some 200,000 British businesses, a figure which includes some 80% of FTSE 100 companies and around 50% of FTSE 350 companies.-Role:The CBI works...

 during the 1960s. He later went into politics and served in the Cabinet
Cabinet (government)
A Cabinet is a body of high ranking government officials, typically representing the executive branch. It can also sometimes be referred to as the Council of Ministers, an Executive Council, or an Executive Committee.- Overview :...

 of Edward Heath
Edward Heath
Sir Edward Richard George "Ted" Heath, KG, MBE, PC was a British Conservative politician who served as Prime Minister of the United Kingdom and as Leader of the Conservative Party ....

 as the first Secretary of State for Trade and Industry
Secretary of State for Trade and Industry
The Secretary of State for Business, Innovation and Skills is a cabinet position in the United Kingdom government. Its secondary title is the President of the Board of Trade...

, a position which he held from October 1970 to 4 November 1972. Davies was President of the Board of Trade and from July to October 1970 was Minister of Technology. He became Privy Councillor to Queen Elizabeth II and, in 1972, was appointed Chancellor of the Duchy of Lancaster
Chancellor of the Duchy of Lancaster
The Chancellor of the Duchy of Lancaster is, in modern times, a ministerial office in the government of the United Kingdom that includes as part of its duties, the administration of the estates and rents of the Duchy of Lancaster...

 with special responsibilities for the co-ordination of British policy towards the European Communities. Davies was to be granted the baronial title of Lord Harding-Davies, but died before the creation of the peerage passed the Great Seal
Great Seal of the Realm
The Great Seal of the Realm or Great Seal of the United Kingdom is a seal that is used to symbolise the Sovereign's approval of important state documents...

. Peerage history was made when, by Royal Warrant bearing the date 27 February 1980, Queen Elizabeth II granted his widow Vera Georgina the title of Lady Harding-Davies; his children The Hon. Francis William Harding Harding-Davies and The Hon. Rosamond Ann Metherell were given the rank of children of a life peer.

Family and early life

Davies was born in Blackheath
Blackheath, London
Blackheath is a district of South London, England. It is named from the large open public grassland which separates it from Greenwich to the north and Lewisham to the west...

, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

 on the 8 January 1916, the second son of Arnold Thomas Davies (1882–1966) a Chartered Accountant
Accountancy
Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management; the art lies in...

 from Folkestone
Folkestone
Folkestone is the principal town in the Shepway District of Kent, England. Its original site was in a valley in the sea cliffs and it developed through fishing and its closeness to the Continent as a landing place and trading port. The coming of the railways, the building of a ferry port, and its...

, by his wife Edith Minnie Harding (1880–1962) only child of Captain Francis Dallas Harding (1839–1902) - see Harding of Baraset - and Minnie Mary Malchus of Calcutta. Davies went to Windlesham House School in Sussex and St. Edward's School
St Edward's School (Oxford)
St. Edward's School is a co-educational independent boarding school located in Oxford, England. The school is located on the Woodstock Road in the north of the city close to the suburb of Summertown. In 2007 it was voted by the Country Life Magazine as number one in the top ten schools in the UK...

, Oxford
Oxford
The city of Oxford is the county town of Oxfordshire, England. The city, made prominent by its medieval university, has a population of just under 165,000, with 153,900 living within the district boundary. It lies about 50 miles north-west of London. The rivers Cherwell and Thames run through...

. He followed his father into accountancy as an articled clerk from 1934; he had just obtained professional qualifications as the youngest Chartered Accountant
Chartered Accountant
Chartered Accountants were the first accountants to form a professional body, initially established in Britain in 1854. The Edinburgh Society of Accountants , the Glasgow Institute of Accountants and Actuaries and the Aberdeen Society of Accountants were each granted a royal charter almost from...

 in the country in 1939, when the outbreak of World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

 led him to enlist in the Royal Army Service Corps
Royal Army Service Corps
The Royal Army Service Corps was a corps of the British Army. It was responsible for land, coastal and lake transport; air despatch; supply of food, water, fuel, and general domestic stores such as clothing, furniture and stationery ; administration of...

. Davies was commissioned as a Second Lieutenant and spent most of the war in the Combined Operations headquarters. From 1945 he worked for Combined Operations Experimental Establishment (COXE), and received the MBE on demobilization in 1946. On the 8th of January 1943, he married Vera Georgina Bates, only child of George William Bates, Managing Director of Barratts Shoes, by his wife Elvina Rosa Taylor. The marriage produced two children; a daughter - Rosamond Ann, and a son - Francis William Harding Davies.

Business career

He joined the Anglo-Iranian Oil Company as an accountant in the marketing division. He qualified as a Fellow of the Institute of Chartered Accountants in 1949. Davies worked for the company in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

, Stockholm
Stockholm
Stockholm is the capital and the largest city of Sweden and constitutes the most populated urban area in Scandinavia. Stockholm is the most populous city in Sweden, with a population of 851,155 in the municipality , 1.37 million in the urban area , and around 2.1 million in the metropolitan area...

 and Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...

; the company renamed as British Petroleum
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...

 in 1954. In 1956, Davies was promoted to be General Manager (Markets) for BP, and in 1960 he was Director of BP Trading.

Management

The next year, Davies was appointed as Vice-Chairman and Managing Director of Shell-Mex and BP Ltd, becoming the youngest man ever to hold the post. This position put him in charge of a national chain of petrol stations. He also became a Director of Hill Samuel
Hill Samuel
Hill Samuel is a wholly owned subsidiary of Lloyds TSB's Offshore Private Banking unit. It was formerly a leading British merchant bank and financial services firm before the takeover by TSB Group Plc. in 1987, which itself merged with Lloyds Bank to become Lloyds TSB in 1995.-History:In 1832,...

 Group. Due to his position he was made a member of the grand council of the Federation of British Industry, and chaired a committee on technical legislation. His conduct on that committee was regarded as impressive.

CBI Director-General

The Federation merged with British Employers' Federation and the National Association of British Manufacturers in 1965 to form the Confederation of British Industry
Confederation of British Industry
The Confederation of British Industry is a British not for profit organisation incorporated by Royal charter which promotes the interests of its members, some 200,000 British businesses, a figure which includes some 80% of FTSE 100 companies and around 50% of FTSE 350 companies.-Role:The CBI works...

. Davies was appointed as its Director-General from that July, wanting the organisation to have a much higher profile than previously. He supported initiatives such as the National Economic Development Council
National Economic Development Council
The National Economic Development Council was a corporatist economic planning forum set up in the 1962 in the United Kingdom to bring together management, trades unions and government in an attempt to address Britain's relative economic decline. It was supported by the National Economic...

 where government, employers and trades unions
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...

 met to discuss the economy, and set up a joint CBI-TUC joint committee. He was also supportive of British entry into the European Community when the government applied in 1967.

Davies surprised some such as Enoch Powell
Enoch Powell
John Enoch Powell, MBE was a British politician, classical scholar, poet, writer, and soldier. He served as a Conservative Party MP and Minister of Health . He attained most prominence in 1968, when he made the controversial Rivers of Blood speech in opposition to mass immigration from...

 in May 1967 when he made a speech in California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...

 in which he observed that the Labour government's measures to keep pay and prices down were working; Powell considered this not only untrue but an example of collaboration in which "the very spokesmen of capitalism
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...

" were doing the work of the socialists. As CBI chief Davies had some quango
Quango
Quango or qango is an acronym used notably in the United Kingdom, Ireland and elsewhere to label an organisation to which government has devolved power...

 appointments as a member of the British Productivity Council, the British National Export Council and the Council of Industrial Design. He was briefly a member of the Public Schools Commission.

However Davies was a Conservative
Conservative Party (UK)
The Conservative Party, formally the Conservative and Unionist Party, is a centre-right political party in the United Kingdom that adheres to the philosophies of conservatism and British unionism. It is the largest political party in the UK, and is currently the largest single party in the House...

 by instinct and after the devaluation
Devaluation
Devaluation is a reduction in the value of a currency with respect to those goods, services or other monetary units with which that currency can be exchanged....

 of the Pound sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...

 in November 1967, he became much more critical of the government. Increasingly he would lambast Labour ministers on television, although he continued to work together with Ministers in private. Davies handed over the title of Director-General to Campbell Adamson
Campbell Adamson
Sir Campbell Adamson was a British industrialist who was best known for his work as Director-General of the Confederation of British Industry from 1969 to 1976...

 in 1969.

Political career

In 1969 Davies was recruited by Edward Heath
Edward Heath
Sir Edward Richard George "Ted" Heath, KG, MBE, PC was a British Conservative politician who served as Prime Minister of the United Kingdom and as Leader of the Conservative Party ....

 to join his government once he won the next election. Heath was looking to lead a 'businesslike' government and believed that senior business figures serving in senior posts would provide more expert management. Davies began to be more quotably critical, describing the "solemn and binding" accord between the government and the TUC (after the failure of In Place of Strife
In Place of Strife
In Place of Strife was a UK Government white paper written in 1969. It was a proposed act to alter the functionality of trade unions in the United Kingdom, but was never passed into law....

) as useful only in the lavatory.

He failed to win the selection for the Conservative nomination at the Louth
Louth, Lincolnshire (UK Parliament constituency)
Louth was a county constituency in Lincolnshire which returned one Member of Parliament to the House of Commons of the Parliament of the United Kingdom from 1885 until it was abolished for the 1983 general election....

 byelection of 1969, and for Cities of London and Westminster
Cities of London and Westminster (UK Parliament constituency)
Cities of London and Westminster is a borough constituency covering the area comprising the City of London and southern portion of the City of Westminster in Central London...

 for the general election. However, with Central Office support, Davies was found a seat at Knutsford
Knutsford (UK Parliament constituency)
Knutsford was a county constituency in Cheshire which returned one Member of Parliament to the House of Commons of the Parliament of the United Kingdom from 1885 until it was abolished for the 1983 general election.- Members of Parliament :...

 in Cheshire
Cheshire
Cheshire is a ceremonial county in North West England. Cheshire's county town is the city of Chester, although its largest town is Warrington. Other major towns include Widnes, Congleton, Crewe, Ellesmere Port, Runcorn, Macclesfield, Winsford, Northwich, and Wilmslow...

, which he easily won in the general election
United Kingdom general election, 1970
The United Kingdom general election of 1970 was held on 18 June 1970, and resulted in a surprise victory for the Conservative Party under leader Edward Heath, who defeated the Labour Party under Harold Wilson. The election also saw the Liberal Party and its new leader Jeremy Thorpe lose half their...

 on 18 June 1970.

Trade and Industry

That October, Davies was promoted to be Secretary of State for Trade and Industry
Secretary of State for Trade and Industry
The Secretary of State for Business, Innovation and Skills is a cabinet position in the United Kingdom government. Its secondary title is the President of the Board of Trade...

, a new department set up by Heath. He introduced himself at the Conservative Party Conference with a speech which reiterated Heath's pre-election policy of refusing to intervene in industry. The phrase most closely associated with him was said in the House of Commons on 4 November, when Davies said:

"We believe that the essential need of the country is to gear its policies to the great majority of people, who are not 'lame ducks', who do not need a hand, who are quite capable of looking after their own interests and only demand to be allowed to do so." (Hansard
Hansard
Hansard is the name of the printed transcripts of parliamentary debates in the Westminster system of government. It is named after Thomas Curson Hansard, an early printer and publisher of these transcripts.-Origins:...

, 5th Series, volume 805, column 1211)


The term 'lame ducks' became associated with Davies. However, when Rolls-Royce
Rolls-Royce Limited
Rolls-Royce Limited was a renowned British car and, from 1914 on, aero-engine manufacturing company founded by Charles Stewart Rolls and Henry Royce on 15 March 1906 as the result of a partnership formed in 1904....

 (a vital defence contractor) ran into financial difficulties early in 1971, it was decided that the government should help by bailing it out. When nugatory efforts did not help, the company was nationalised
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...

 to prevent it from going bankrupt.

In June 1971 the Upper Clyde Shipbuilders
Upper Clyde Shipbuilders
Upper Clyde Shipbuilders was a British shipbuilding consortium created in 1968 as a result of the amalgamation of five major shipbuilders of the River Clyde in Scotland...

 went into receivership after the government refused it a £6 million loan. The workers at the yard, led by Communist
Communist Party of Great Britain
The Communist Party of Great Britain was the largest communist party in Great Britain, although it never became a mass party like those in France and Italy. It existed from 1920 to 1991.-Formation:...

 shop stewards, decided to hold a 'work-in' when they occupied the yard and continued production. This industrial action tended to refute claims that trades unions
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...

 were work-shy and was therefore embarrassing to the government. Davies' London home was firebombed by the Angry Brigade on 31 July 1971. In February 1972 the government changed its policy and decided to retain three of the four shipyards at a cost of £35 million, although Davies knew they would never operate on a commercial basis.

Chancellor of the Duchy of Lancaster

Davies moved sideways to become Chancellor of the Duchy of Lancaster
Chancellor of the Duchy of Lancaster
The Chancellor of the Duchy of Lancaster is, in modern times, a ministerial office in the government of the United Kingdom that includes as part of its duties, the administration of the estates and rents of the Duchy of Lancaster...

 in November 1972, with special responsibility for British relations with the European Community which Britain joined on 1 January 1973. Davies' role was predominantly behind the scenes in making sure British law was in compliance with European law. In Cabinet discussions, Davies advocated a confrontational approach to the trade unions, although he feared for the future.

Opposition

After Heath left office in 1974, Davies retained his Parliamentary seat but was not given a post in the Shadow Cabinet
Official Opposition Shadow Cabinet (UK)
The Official Loyal Opposition Shadow Cabinet are, in British parliamentary practice, senior members of Her Majesty's Loyal Opposition who scrutinise their corresponding office holders in the Government, develop alternative policies, and hold the Government to account for its actions and responses...

. He resumed his directorship of Hill Samuel. From May he took the Chairmanship of the European Scrutiny Committee of the House of Commons, examining the details of legislation, and won a strong reputation for looking in detail at the regulations coming out of the EC institutions. In 1975, Davies campaigned for a 'Yes' vote in the referendum on EC membership
United Kingdom referendum, 1975
The United Kingdom referendum of 1975 was a post-legislative referendum held on 5 June 1975 in the United Kingdom to gauge support for the country's continued membership of the European Economic Community , often known as the Common Market at the time, which it had entered in 1973 under the...

.

Davies was nominated by the Conservative Party as a European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....

er for the term beginning in 1977, but was unacceptable to the Labour government. However in November 1976 Margaret Thatcher
Margaret Thatcher
Margaret Hilda Thatcher, Baroness Thatcher, was Prime Minister of the United Kingdom from 1979 to 1990...

 decided to sack the unimpressive Reginald Maudling
Reginald Maudling
Reginald Maudling was a British politician who held several Cabinet posts, including Chancellor of the Exchequer. He had been spoken of as a prospective Conservative leader since 1955, and was twice seriously considered for the post; he was Edward Heath's chief rival in 1965...

 as Shadow Foreign Secretary and appointed Davies to replace him. Mrs Thatcher's memoirs give praise for the effectiveness of Davies' work in the role.

Davies was not a strong supporter of monetarism
Monetarism
Monetarism is a tendency in economic thought that emphasizes the role of governments in controlling the amount of money in circulation. It is the view within monetary economics that variation in the money supply has major influences on national output in the short run and the price level over...

, although he did agree with Thatcher's view on Soviet
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....

 expansionism. The major disagreement within the Conservative Party was over Rhodesia
Rhodesia
Rhodesia , officially the Republic of Rhodesia from 1970, was an unrecognised state located in southern Africa that existed between 1965 and 1979 following its Unilateral Declaration of Independence from the United Kingdom on 11 November 1965...

 and whether to continue sanctions
International sanctions
International sanctions are actions taken by countries against others for political reasons, either unilaterally or multilaterally.There are several types of sanctions....

 on the government of Ian Smith
Ian Smith
Ian Douglas Smith GCLM ID was a politician active in the government of Southern Rhodesia, the Federation of Rhodesia and Nyasaland, Rhodesia, Zimbabwe Rhodesia and Zimbabwe from 1948 to 1987, most notably serving as Prime Minister of Rhodesia from 13 April 1964 to 1 June 1979...

: Davies believed that Smith was not entirely committed to a negotiated peace and therefore that sanctions should be maintained.

Illness and death

Davies was diagnosed with a malignant brain tumour in 1978 and swiftly stood down from the Shadow Cabinet and from Parliament. Davies was granted the position of Steward of the Manor of Northstead on 6 November 1978. In the Queen's birthday honours list of 1979, he was awarded a life peer
Life peer
In the United Kingdom, life peers are appointed members of the Peerage whose titles cannot be inherited. Nowadays life peerages, always of baronial rank, are created under the Life Peerages Act 1958 and entitle the holders to seats in the House of Lords, presuming they meet qualifications such as...

age, but on 4 July 1979 The London Gazette announced that "Gentle Davies [was] dead" from a relapse before the patent of creation passed the Great Seal
Great Seal
- Countries :* Great Seal of Canada** Great Seal of Ontario* Great Seal of France* Seal of the President of Ireland* Great Seal of the Realm ** Great Seal of Northern Ireland** Great Seal of Scotland**Welsh Seal* Great Seal of the State...

. Peerage history was made when, by Royal Warrant bearing the date 27 February 1980, his widow Vera Georgina was granted the style and title of Lady Harding-Davies, Baroness of St. Mellons, indicating the title Davies had intended to take; his children The Hon. Francis William Harding Harding-Davies and The Hon. Rosamond Ann Metherell were given the rank of children of life peers.

External links

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