Cities and Local Government Devolution Bill [HL]

Debate between Baroness Williams of Trafford and Lord Smith of Leigh
Monday 22nd June 2015

(8 years, 10 months ago)

Lords Chamber
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Baroness Williams of Trafford Portrait The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Williams of Trafford) (Con)
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My Lords, I appreciate the intentions behind these amendments, and noble Lords have made very valid points. I have just asked for some comparator salaries for city or conurbation mayors. The London mayor earns nearly £144,000 a year, and the Bristol mayor earns nearly £66,000.

There are already statutes in place regarding independent remuneration panels and the remuneration of elected members. A combined authority’s constituent councils are required by the Local Government and Housing Act 1989 to establish and maintain independent remuneration panels which make recommendations to local authorities regarding the remuneration of elected members to which local authorities have to have regard. To take my noble friend Lord Heseltine’s point, there is nothing to stop them making international comparisons.

It would seem that to make provisions for a combined authority to establish its own independent remuneration committee merely to determine the remuneration of the elected mayor would be introducing an unnecessary layer of bureaucracy and would take away some of the flexibility that this Bill offers to those areas that seek to establish a combined authority. Further legislation, the Local Transport Act 2008, enables the Secretary of State to make provisions about the remuneration of, and pensions or allowances payable to or in respect of, any member of the combined authority. That includes making provision about the remuneration—that is, the allowances—of a metro mayor, including the part to be played in setting those allowances by independent remuneration panels in the combined authority’s area. As this power already exists, we consider it unnecessary to make further regulations in connection with the remuneration of elected members. With those explanations, I hope that the noble Lord feels able to withdraw the amendment.

Lord Smith of Leigh Portrait Lord Smith of Leigh
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My Lords, I thank noble Lords for contributing to this very brief debate; it is about time we hurried up a bit on the Bill.

I take the point made by the noble Lord, Lord Heseltine, about local authorities. I decided, earlier in my career, that I would eventually become a full-time local politician and therefore I lost out on my chosen career—I probably would have been paid more money. I am sure that the noble Lord made sacrifices; if he had gone into business and used his strategic mind there, he probably would have earned a lot more money than he ever did as a Cabinet Minister or an MP. So we all make choices. It can be a dilemma, because sometimes people have to say to their families, “I really enjoy doing this job, but I’m not going to get paid as much as I might in another job”. The Minister will recall that her successor as leader of Trafford had to make that personal choice. That was a very sad loss for others, as he was making a very good contribution, but he decided that he needed to support his family more. So we make those choices.

We also need to think about the fact that the new mayor and the new combined authority’s work needs to be judged in the cockpit of public opinion. If it is perceived that people are getting overpaid, that will detract both from the reputation of the mayor and from the work of the elected members.

This is a difficult issue, and certainly we need to think about it. If we just leave it to local members to decide, as the noble Lord, Lord Heseltine, said, they will be totally criticised for that, and that would be unfair. However, we also need to respect that not all those positions will be exactly the same. The theme of the Bill has been flexibility, so in a sense there needs to be flexibility there. With those comments, I beg leave to withdraw my amendment.