Pay deals for public sector fat cats need justifying, say MP

[TrueBlueTerrier]

http://www.independent.co.uk/news/uk/po ... 46354.html" onclick="window.open(this.href);return false;

All-party committee recommends commission to scrutinise highly paid posts

By Andy McSmith

Monday, 21 December 2009

Local councils and other public bodies who overpay their most senior staff should be "named and shamed", a committee of MPs has recommended.

The all-party Public Administration Committee wants the Government to set up a new Top Pay Commission with the expertise to analyse salaries at the top end of the market to ensure that taxpayers get value for money.

Councils, NHS trusts and other public bodies are increasingly presenting the argument that they have to pay six-figure salaries to hold on to the senior staff because skilled executives can easily find better paid jobs in the private sector.

There are now more than 300 executives in the public sector who are paid more than the Prime Minister, who is entitled to a salary of £197,689. Some, such as the heads of the Royal Mail, Channel 4 or the BBC, are paid more than three times Gordon Brown's salary.

Ed Richards, who once worked as Gordon Brown's political adviser, now earns twice his old boss's salary as head of the media regulator, Ofcom.

But in defence of Mr Richards's salary, the MPs point out that Ofcom was created six years ago by merging five different regulators, and the combined salaries of their five chief executives was way above what Mr Richards is paid.

In their report, Top Pay in the Public Sector, the MPs criticised the lack of imagination shown by many councils when they recruit senior staff.

"There is little to discourage those taking local decisions on senior pay from paying over the odds for a candidate who is a 'safe bet', and very little to incentivise them to appoint someone who might represent better value, possibly internally, who is of potential but with less experience at the top level," the MPs warned.

The MPs agreed that putting an arbitrary limit on the top salaries in the public sector could cost taxpayers a lot more money than it saved, by creating badly run public services where staff morale was low.

They argued that there should be a new Top Pay Commission with a "broad remit" to collect, analyse and publish information about all highly paid posts in the public sector, and on what people doing comparable jobs in the private sector are being paid.

They would then publish principles which all public sector employers would be expected to follow, and would have the power to investigate and expose those who are not following them.

"Set against the stratospheric pay increases seen at the top of the private sector over the past 10 years, the public sector has got excellent value from many of its top people," the committee chairman, Dr Tony Wright, said.

"However, we do not believe that the ever-growing gulf between average earnings and top pay is sustainable or desirable – especially in a time of recession. Our Top Pay Commission would ensure that public sector pay setters would have to justify top pay deals and set them in the context of pay at lower levels and the state of the public finances."

[norbert]

Yeah but Pa McRuin insisted on feeding them - he was the Chancellor at the time !, he approved top civil service basic pay - let alone bonuses up to £180,000 in 2002 so that more " talent " could be brought in from the Private Sector which worked very well of course - not ! .

Then there was rises to £240,000 - slightly above inflation ? . McRuin should have been headhunted by Enron .

He kept the bankers happy with "the light touch of regulation" and their excesses to bring in a extra few hundred million in income or Corporation Tax to save his hide . Britain will be the last out of the recession as it's a economy based on nothing or shopping and selling debt at the very best .

Money should have been spent on infrastructure .

[Wessex]

They're going to be named but not shamed , there will be no salary cap that's because the poor darlings might get very,very upset and leave their jobs bless them and then where would we all be ?

So no change then :mfo

[norbert]

" The MPs agreed that putting an arbitrary limit on the top salaries in the public sector could cost taxpayers a lot more money than it saved, by creating badly run public services where staff morale was low."

Think you've already got that - not just RM either

"Set against the stratospheric pay increases seen at the top of the private sector over the past 10 years, the public sector has got excellent value from many of its top people,"

of course - that excuse , The State takes the risk and the debt if they cock up , no angry shareholder's meetings

[bogstandard]

If the fat cats are threatening to leave let them go.
I would put money on it that there are plenty out there waiting to take over those jobs in the hope of being head hunted for better things.

the government should grow a pair and cut the strings off of these leeches.
Bloody parasites that the world would be a better place without.

[norbert]

If the fat cats are threatening to leave let them go.
I would put money on it that there are plenty out there waiting to take over those jobs in the hope of being head hunted for better things.

the government should grow a pair and cut the strings off of these leeches.
Bloody parasites that the world would be a better place without.

The EEC want more of it , supposed to be trying to get another directive through - unbelievable

http://www.no2eu.com/publicservices.html" onclick="window.open(this.href);return false;
http://www.no2eu.com/publicservices.html" onclick="window.open(this.href);return false; ( How the EU is destroying RM )

http://www.caef.org.uk/" onclick="window.open(this.href);return false; ( Campaign against Euro Federalism ) - No wonder they kept bullying the Irish until they got the result on Lisbon that they wanted . At least they could vote ! , Cameron has backtracked on it too which will upset part of his party .