John Purvis

John Purvis

John Purvis (born 06 July 1938, St. Andrews, Fife) is a former Conservative MEP (1979-1984, 1999-2009) for the south of Scotland. He was the Vice Chair of the Committee on Economic and Monetary Affairs and substitute member for the Industry, Research and Energy Committee. He has a history of work in the European Parliament on financial services and on biotechnology. He also has direct financial interests in both industries.

He is a 'founding member' of the European Parliamentary Financial Services Forum a lobby group set up by the financial services industry to get close to MEPs. It is run by lobbying firm Houston Consulting. Purvis has written two 'own initiative' reports, one on financial services and one on biotech. On 17 March 2005, he made an additional declaration in the Register of members interests which disclosed that Purvis has a remunerated position as 'Partner, Life Science Capital LLP, London, England', which is of course a venture capital firm set up to fund biotech industry developments.

Affiliations

Parliamentary Affiliations

Vice-Chair:

11.04.1983 / 23.07.1984 : Delegation for relations with the Gulf States

22.01.2002 / 19.07.2004 : Committee on Economic and Monetary Affairs

01.09.2004 / 14.01.2007 : Committee on Economic and Monetary Affairs

15.01.2007 / 30.01.2007 : Committee on Economic and Monetary Affairs

01.02.2007 / 13.07.2009 : Committee on Economic and Monetary Affairs

Member:

17.07.1979 / 23.07.1984 : European Democratic Group

20.07.1979 / 20.01.1982 : Committee on Energy and Research

10.04.1981 / 08.07.1982 : Committee on Economic and Monetary Affairs

09.07.1982 / 23.07.1984 : Committee on Energy and Research

20.07.1999 / 19.07.2004 : Group of the European People's Party (Christian Democrats) and European Democrats

21.07.1999 / 14.01.2002 : Committee on Industry, External Trade, Research and Energy

06.10.1999 / 14.01.2002 : Delegation for relations with the Mashreq countries and the Gulf

13.12.2000 / 29.11.2001 : Temporary committee on human genetics and other new technologies in modern medicine

17.01.2002 / 19.07.2004 : Committee on Industry, External Trade, Research and Energy

17.01.2002 / 21.01.2002 : Committee on Economic and Monetary Affairs

07.02.2002 / 19.07.2004 : Delegation for relations with the Mashreq countries and the Gulf

20.07.2004 / 13.07.2009 : Group of the European People's Party (Christian Democrats) and European Democrats

21.07.2004 / 31.08.2004 : Committee on Economic and Monetary Affairs

15.09.2004 / 13.03.2007 : Delegation for relations with the Mashreq countries

13.10.2004 / 13.03.2007 : Delegation for relations with Iran

16.02.2006 / 19.06.2007 : Committee of Inquiry into the crisis of the Equitable Life Assurance Society

31.01.2007 / 31.01.2007 : Committee on Economic and Monetary Affairs

14.03.2007 / 13.07.2009 : Delegation for relations with Iran

14.03.2007 / 13.07.2009 : Delegation for relations with the Mashreq countries

Substitute:

21.07.1999 / 14.01.2002 : Committee on Economic and Monetary Affairs

08.10.1999 / 14.01.2002 : Delegation to the EU-Bulgaria Joint Parliamentary Committee

07.03.2002 / 12.03.2002 : Delegation to the EU-Hungary Joint Parliamentary Committee

13.03.2002 / 19.07.2004 : Delegation to the EU-Bulgaria Joint Parliamentary Committee

22.07.2004 / 14.01.2007 : Committee on Industry, Research and Energy

15.09.2004 / 13.03.2007 : Delegation for relations with the Gulf States, including Yemen

19.01.2006 / 15.02.2006 : Committee of Inquiry into the crisis of the Equitable Life Assurance Society

15.01.2007 / 30.01.2007 : Committee on Industry, Research and Energy

31.01.2007 / 13.07.2009 : Committee on Industry, Research and Energy

14.03.2007 / 13.07.2009 : Delegation for relations with the Gulf States, including Yemen

Record and Controversies

Declaration of Financial Interest

Professional Activities:

• Farming
• Non-executive directorships

Paid Functions or Activities:

• Owner Brigton and Gilmerton Farms, St Andrews, Fife, Scotland - including rental houses
• Partner, Brigton Partners - farming
• Non-executive Chairman, Belgrave Capital Management Ltd - Investment Advisory
• Non-executive Director,* Kingdom FM Radio Ltd, Local Commercial Radio Station (*shareholder of company)

Further Information:

• Henderson Loggie, Dundee, act as my paying agent for six full or part-time assistants and the overall annual payment is between £130,000 and £140,000.
• I have a service provider contract with a part-time assistant for my Strasbourg office.

Background of Conflicts

Until February 2008, when it went into voluntary liquidation, Purvis was a nonexecutive Director and significant shareholder of the European Utilities Trust (EUT). According to its 2006 annual report, nearly 50 per cent of the investment trust’s assets were in companies with nuclear interests, and in 2007, investments in nuclear represented some 35 per cent of the company’s assets. Many of the companies listed: Iberdrola, RWE, E.On and Suez could benefit financially if there was strong support from the EU for new nuclear build.

Purvis is a keen supporter of nuclear power. In October 2005 he was one of the signatories to a European Atomic Forum (FORATOM) declaration in support of increased nuclear power in the EU. Two years later, Purvis was again one of a number of MEPs who signed another FORATOM declaration calling for EU leaders to recognise that “nuclear energy is an important part of the EU lowcarbon energy mix and will play an increasing role in limiting CO2 emissions.”

He has also advocated that nuclear is the solution to Scotland's energy problems at a conference of the European Movement.

“Scotland currently has a target of 40% of electricity coming from renewables by 2020. This just can not be done,” Purvis told the conference in 2005. “In Scotland, we have Hunterston, Chapelcross and Torness nuclear power stations but Chapelcross has closed and the others are reaching the end of their lives and yet we have no plans to build even one more nuclear power station,” he said.

“If we do not make a decision about nuclear power soon, as North Sea oil and gas run out and our nuclear power capacity expires, we will be dependent on importing the bulk of our energy from some of the most unreliable sources in the world such as Siberia, the Middle East and North Africa.”

In his register of interests at the European Parliament, John Purvis lists amongst his appointments that he is the Non-executive Director, and a shareholder of the European Utilities Investment Trust.

According to the latest (2006) Annual Report for the European Utilities Trust plc, nearly 50 per cent of its net assets - over £10 million of investments - were in companies with nuclear interests. Many of these companies would benefit financially if there was an EU-adoption of new nuclear build.

Purvis is currently involved with biotech investors, Life Science Capital (see the sub-text Benefiting from Biotech? below). He is also the non-executive Chairman of Belgrave Capital Management (BCM), which “specialises in the research and selection of talented investment advisors”. In 1999 BCM became part of the Banca del Ceresio Group, “a Swiss Bank…considered to be one of the historic and most respected investors in the field of hedge funds.” BCM is the investment manager responsible for Vitruvius, a multi-portfolio fund.

Vitruvius holds different investment portfolios. The company’s 2007 accounts show that it has significant investments in biotechnology / pharmaceuticals: 13 per cent of its Swiss Franc 26 million Swiss equity fund; 9 per cent of its $214 million US equity fund; 6 per cent of its $33 million capital opportunities fund; and 3 per cent of its 160 million Euro European equity fund. Its European equity portfolio also has significant investments in companies impacted by EU decision-making, for example; car company, Daimler; energy company E.On; and oil companies BP, Shell and Total.

Purvis is also faced with a potential conflict of interest over the hedge funds themselves. In 2003, he acted as a Rapporteur for the Economic and Monetary Affairs Committee on an own-initiative report into hedge funds, which proposed a “light-handed and appropriate EU-wide regulatory regime” for the hedge fund industry.

Purvis does not see any conflicts over his involvement with BCM and his work on hedge funds. He argues that the firm “select managers to manage money for their clients, some of them may be hedge fund managers, or use hedge fund techniques.” On the committee report into hedge funds, Purvis says: “The reason for the light-handed regulation was to have some regulation, because at the moment hedge funds themselves are mostly offshore.”

But in 2005, the Wall Street Journal reported how “a bid to cut off funds for terrorism by tightening financial-crime laws has been watered down in the European Parliament with the help of legislators with close ties to the financial industry, including one lawmaker [Purvis] who is chairman of a hedge-fund firm.” According to Scotland’s Sunday Herald: “Purvis’s revisions loosened disclosure requirements and attempted to place fewer burdens on firms.”

The minutes from a meeting of the European Parliamentary Financial Services Forum, noted that Purvis “said that while it is necessary to combat money-laundering and terrorist financing effectively”, he is concerned that “methods” being introduced risked “creating a very heavy system”. Later that year Purvis complained that “yet more enhanced and rigorous controls on money flows in the fight against terrorism” would “gravely impede” commercial and personal transactions “with red tape and regulatory officiousness”.

Still heavily involved in hedge funds, Purvis is currently Vice Chair of Parliament’s Economic and Monetary Affairs Committee, whose responsibilities include “the regulation and supervision of financial services, institutions and markets including financial reporting, auditing, accounting rules, corporate governance and other company law matters specifically concerning financial services.”

Purvis sees no conflict of interest with any of his commercial links and work as a Parliamentarian “They are fully declared” he argues. In response to detailed questions about his investments he dismissed inquiries as “clutching at straws”.

Benefiting from Biotech?

Purvis’s outside interests include being a partner in the firm Life Science Capital LLP, which invests in the biotechnology sector. It is run by his son-in-law, Tom Daniel, who is the controlling interest in the firm. Daniel also runs the parent company Life Science Capital Management Limited, which is incorporated in the Cayman Islands.

Purvis has long supported the biotechnology sector in Parliament and has been seen as leading on the issue for the Conservatives. In 2001, he was the main Rapporteur for an own-initiative report on the future of the biotechnology industry. In 2002, Purvis hit out at the “Luddite obstruction” against biotech, saying it was “high time” for biotech industries to be promoted. In 2005, Purvis hosted a dinner debate at the European Parliament on "The role of biotech in the Lisbon Process" for EuropaBio, a lobby group for the biotech industry in Europe. In 2007, Purvis again co-hosted a EuropaBio event to launch the ‘Plants for the Future’ Technology Platform, a ‘forum for the plant sector’ initiated and supported by the European Commission and dominated by industry. The Platform’s report called on Europe to use plant sciences and biotechnology to enhance EU competitiveness and welfare.

Purvis’s press spokesperson defends his biotech interests: “John has been a Rapporteur for the biotech industry [sic] in Europe at the Parliament so it obvious that it is something he is extremely interested in. He makes no apology about being in the industry himself.”

Register of interests

• Owner, Brigton and Gilmerton Farms, St Andrews, Fife, Scotland - including rental houses
• Partner, Brigton Partners - farming
• Partner, Purvis and Company - Business Advisory
• Partner, Life Science Capital LLP, London, England - Investment Management
• Non-executive Chairman, Belgrave Capital Management Ltd - Investment Advisory
• Non-executive Director, European Utilities Investment Trust Plc
• Non-executive Chairman, Kingdom FM Radio Ltd, Local Commercial Radio Station (shareholder of company)

Conflicts of Interest

In February 2006 the Sunday Herald reported:

Purvis's alleged conflict of interest was first apparent during last year's passage of the Third Money Laundering Directive, which committed member states to combating terrorism by clamping down on illegal transactions.

The legislation requires EU members to make firms report suspicious dealings, as well as tightening the regulations on the financial vehicles used for "dirty money" transactions, such as trusts and hedge funds, which are largely unregulated investment portfolios.

Bankers and others in the financial world were unhappy with the original draft of the directive because they felt it placed extra burdens on business.

These fears were shared by Purvis, a member of the European Parliament's Economic and Monetary Affairs Committee, who last year tabled amendments, the effect of which arguably watered down the document.

His revisions, some of which were accepted, loosened disclosure requirements and tried to place fewer burdens on firms.

A minute of a January 2005 meeting of the European Parliamentary Financial Services Forum, which acts as forum for the industry, showed Purvis's unease with the general plans:

"John Purvis MEP said that while it is necessary to combat money-laundering and terrorist financing effectively, he is concerned that the methods introduced recently or being introduced risked creating a very heavy system and practical problems for both commerce and individuals."

He also asked an oral question on how the fight against terrorism could be achieved without "gravely impeding commercial and personal transactions".

Other opponents of the directive ensured that one of the original proposals, which would have required anyone owning more than 10% of a trust to be identified in legal records, was amended to 25%.

Purvis's actions have caused concern because he is the non-executive chairman of Belgrave Capital Management, a financial services firm. Established in 1994, the company then became part of the Banca del Ceresio Group, a Lugano-based Swiss bank and an investor in hedge funds.

But the MEP's interest in the subject predates his proposed parliamentary amendments to the money-laundering directive. In 2004, the European parliament approved his plans for the introduction of an EU-wide 'passport' for hedge funds.

Purvis said at the time that his proposals, which have still to be adopted by member states, were about creating a "light-handed' regulatory regime that would help the sector - "It is vital that we encourage hedge funds into the EU".

His role in championing the biotechnology sector is also coming under scrutiny after it emerged that he is a partner in a life sciences firm.

Purvis has long supported biotech, as in 2001 when he helped write a report that called for the industry to be given greater help from government.

In 2002, he hit out at the "Luddite obstruction" which he believed would harm Scottish scientists and farmers, while he also said it was "high time" for European biotech industries to be promoted.

This was followed in 2005 by the MEP becoming a partner in Life Science Capital LLP, a biotech firm set up by his son-in-law.

Purvis declared the financial interests in his parliamentary register, although he has not disclosed the amount of money he receives from the companies.

Record of Parliamentary Votes

• Voted against the directive on "establishing a framework for Community action in the field of water policy" (A5-0027/2000). The directive covers all water management aspects in order to achieve a 'good status' of all waters by 2015.
• Voted in favour of the directive on "national emission ceilings for certain atmospheric pollutants" (A5-0063/2000). The amendment allows setting less ambitious national emission ceilings for sulphur dioxide (SO2), nitrogen oxides (NOx), ammonia (NH3) and volatile organic compounds (VOC), which would result in more damage to human health and the environment.
• Voted in favour of the Commission White Paper on "Strategy for a future Chemicals Policy" (A5-0356/2001). The amendment helps avoid the necessary precautionary approach towards some chemical substances that are not proven to be completely safe.
• Voted against the directive on "waste electrical and electronic equipment" (A5-0100/2002). The amendment sets higher reuse and recycling rates for IT and telecommunication equipment. Rejected due to lack of absolute majority.
• Voted in favour of the report on "Community guidelines for the development of the trans-European transport network" (A5-0135/2002). The Trans-European Network of Transport (TEN-T) is a network of so-called 'transport corridors' through Europe. This amendment calls for a full Strategic Environmental Assessment of these transport corridors and calls on the Commission to improve methods for analysing the environmental and economic impact of the TEN-T.
• Voted against the regulation concerning "traceability and labelling of genetically modified organisms and traceability of food and feed products produced from genetically modified organisms" (A5-0229/2002). The amendment allows customers the right to choose GM free food.
• Voted against the report towards a "thematic strategy on the sustainable use of pesticides" (A5-0061/2003). The amendment proposes to ban or severely restrict use of pesticides in areas around sources of drinking water and nature protected zones.
• Voted against the directive on "environmental liability with regard to the prevention and remedying of environmental damage" (A5-0145/2003). According to the amendment, polluters have to pay for environmental clean-up, and it supports an EU-wide regime which makes polluters liable for the damage they cause to wildlife, water and land.
• Voted against the directive on restructuring the "Community framework for the taxation of energy products and electricity" (A5-0302/2003). The amendment aims at giving tax benefits to environmentally friendly sources of energy, which would make them cheaper and more competitive to conventional (more polluting) sources of energy. It also gives tax benefits to environmentally friendly uses of energy for transport, for instance trains. Rejected due to lack of absolute majority.
• Voted against the amendment on Bulgaria’s progress towards accession (A5-0105/2004). The report objects to extending the life of the nuclear power stations in Bulgaria.

Personal Information

Curriculum Vitae

• MA (Hons.), St Andrews University (1958-1962).
• Military service: second lieutenant, Scots Guards (1956-1958).
• Worked for First National City Bank: London, New York, Milan (1962-1969).
• Treasurer, Noble Grossart Ltd, Edinburgh (1969-1973).
• Managing Director and Chairman, Gilmerton Management Services Ltd, St Andrews (1973-1986).
• Various non-executive chairmanships, directorships and trusteeships (1973- ).
• Scottish Conservative and Unionist Party: Chairman, Economic Affairs Committee (1986-1997); Vice-President (1988-1990).
• Member of the European Parliament (1979-1984 and since 1999).
• Vice-Chairman of the Delegation for relations with the Gulf States (1982-1984).
• Vice-Chairman of the Committee on Economic and Monetary Affairs (since 2002).
• Scottish Member and Chairman of Scottish Committee, Independent Broadcasting Authority (1985-1989).
• Member, Scottish Advisory Committee on Telecoms (1990-1997).
• Company chairman/director in radio, paper and investment industries in the UK and elsewhere in Europe and the USA.
• Farmer and landowner in Scotland.
• Trustee, charitable foundation.
• CBE (1990).

Contact

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Email:

Website:

This article is part of the MEPedia project of Spinwatch.

Resources

• European Parliament, Declaration of Members' Financial Interests: John Purvis, 2008, accessed 07 February 2009.
• European Parliament, MEP Directory: John Purvis, accessed 07 February 2009.
• European Parliament, MEP Directory: John Purvis, accessed 02 December 2010.
• Friends of the Earth, EU Vote Watch, accessed 07 February 2009.
• Hutcheon, Paul, "Tory MEP accused of having "conflicts of interest"," Sunday Herald, 19 February 2006, accessed 26 November 2008.
• Purvis, John, Addition to Declaration of Members' Financial Interests, 17 March 2005, accessed 26 November 2008.
• Purvis, John, Declaration of Members' Financial Interests, 16 November 2005, accessed 26 November 2008.
• Rowell, Andy, "Too Close for Comfort?" Spinwatch, July 2008, accessed 26 November 2008.