Corporate governance - A very public concern.

(From Financial Director)

Byline: Robert Bruce, a leading commentator on accountancy issues.

Nagging away beneath the huge growth in regulation the business world has seen in recent years is what is rapidly becoming a fundamental flaw. It is the centuries-old question of who regulates the regulators.

Independence is the goal, so independence has become the mantra. But behind the political scenes another motive has always been lurking, and that is for the politicians in government to be able to keep as much distance as possible between them and anything that might go wrong.

There was a startling example of this recently when a whiff of criticism reached a minister. In an interview with the Financial Times, transport minister Kim Howells said: "To me, it was insane that it is not the secretary of state who says how much can be spent on the railways every year but an independent regulator." This is breathtaking. The inference is clear.

Independence can only be allowed if it agrees with government policy.

It was simply a staggering admission of the bullying, bluff-it-out cynicism that lurks behind the facade of the public sector and independent regulation.