LONDON (Reuters) - The "arcane" system of honouring citizens with knighthoods should be scrapped, a parliamentary committee says. Racial diversity should be better reflected in the awards and the inflammatory word "Empire" should be dropped from honours such as Order of the British Empire (OBE), the Public Administration Committee said in a report published on Tuesday. "The current system is terribly secretive ... It's over-complicated and it's certainly out of date," Labour committee member Anne Campbell, told BBC radio. "We need a system that really accords more with the modern day," she added. Obscure honours such as "Orders of...