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Responding to Sir David Walker's review of disclosure by private equity, TUC General Secretary, Brendan Barber, said:

This is a significant report on a sector that needs to be dragged kicking and screaming into the open. It is a recognition of the strength of the arguments mounted by private equity critics against the sector's secrecy and lack of transparency.

Many of its proposals can be welcomed, particularly the call for better disclosure from both private equity funds and their portfolio companies, but it will not end the debate about private equity.

First this is simply a proposal for a voluntary code of conduct, while disclosure requirements on public companies are mandatory and enforced by the courts. A 'comply or explain' code is not sufficient, there needs to be full disclosure by all players.

Second it only deals with one controversial aspect of private equity. It will do nothing to end worries about the wider economic instability threatened by the growth of highly leveraged buy-outs.

And most importantly it will do little to reassure the staff of private equity take over targets that the quest for short term returns will not continue to threaten their jobs, pensions and working conditions.

The private equity industry will be hoping that this is the least they have to do to end the controversy. But their critics will see this simply as the first step of many that need to be taken.

The TUC will make a full submission as part of the consultation. We look forward to further discussions with private equity representatives and will seek to build on the positive parts of this report.