Members’ Salaries

David Heath Excerpts

Monday 21st March 2011 Commons Chamber

[The Parliamentary Secretary, Office of the Leader of the House of Commons (Mr David Heath)]

Hear, hear to what the hon. Member for Warrington North (Helen Jones) said at the end of her speech: I do not think that we want to be in this position again.

I want to pick up on something that my right hon. Friend the Member for Bermondsey and Old Southwark (Simon Hughes) said about pay review bodies. Yes, it is true that a succession of reports from such bodies has been accepted by the Government. They deal with teachers, the Prison Service and the health service. Every single one of them says that there should be no increase in pay this year for those who earn more than £21,000. Only one pay review body is proposing an increase for people who earn considerably more than £21,000, and that is the one that deals with Members of Parliament. Why is that happening? Because it is not an entirely independent review, as we have already heard from my right hon. Friend the Leader of the House of Commons, and because it was pre-emptively interfered with by the decision of the previous Government and the previous House in setting the parameters for our pay, which has resulted in the anomalous position of the proposal of a 1% pay increase for MPs while everyone else in the public service gets a pay freeze. That is why we have had to come back to the House today.

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

On a point of clarification, there has been a lot of disquiet in the debate about Members of Parliament having to vote on their own pay. Can my hon. Friend confirm whether there will be an annual vote on our pay when IPSA takes over this matter?

--- Later in debate ---

[Mr Heath]

There certainly will not be—[Interruption.] My hon. Friend the Member for Wellingborough (Mr Bone) can scoff, but there will not be. It will be a genuinely independent process.

The hon. Member for Bassetlaw (John Mann) asked why we had not tabled an amendment. There is no need for an amendment in order to transfer the matter to IPSA, an entirely independent body, because the legislation is already in place. All that we need is a commencement order. He went on to say that he would refuse to vote this evening. Let me tell him, and anyone who is minded to do the same, that if the House refuses to vote for the motion this evening, we will have a 1% pay increase, and those hon. Members will have to justify that pay increase to their constituents at a time of national constraint. I do not believe that that would be easy to do.

[Adam Afriyie (Windsor) (Con)]

If the Deputy Leader of the House is so keen for an independent body such as IPSA to control MPs’ salaries, why does he not hand that over from 1 April this year?

[Mr Heath]

We shall do so when IPSA and the House are ready, and it will be done shortly. We have already given that reply, and I repeat it again. Incidentally, may I tell the right hon. Member for Leeds Central (Hilary Benn) that he will soon receive a reply on pensions, but we have made it clear that MPs’ pensions will be informed by the Hutton review in exactly the same way as pensions in the rest of the public service? It is a matter that the House will soon have the opportunity to discuss.

I was extremely disappointed by part of the contribution from the hon. Member for Cities of London and Westminster (Mr Field) in which he appeared to impugn the integrity of my right hon. Friend the Leader of the House. That is entirely regrettable and unjustifiable, given his record in opposition and in government, and I hope that the hon. Gentleman will take the opportunity to withdraw that suggestion.

[Mr Mark Field]

I was simply trying to inform the House of events that took place two years ago, and was in no way trying to impugn the integrity of my right hon. Friend the Leader of the House. I was just pointing out that in his former guise he had made the case for independent reviews very strongly in amendments that he had tabled, and I hoped that he would do the same again.

May I briefly ask the deputy Leader of the House whether, if there is a salary freeze in the public sector from April 2013 to April 2014, he will do his best, once MPs’ salaries are in IPSA’s hands, to stop IPSA putting up those salaries, despite the fact that, by that stage, IPSA will be the entirely independent body that he believes the SSRB is not?

[Mr Heath]

I did not hear the hon. Gentleman say what he said that he had said about my right hon. Friend—I heard something quite different—but we shall have to look at the Official Report to be sure.

Once IPSA has control of Members’ salaries, it will be entirely independent and it will not be for me or for anyone else to tell it how to do its job. Independent assessment is right—we all agree about that. In principle, Members of Parliament should not vote on their own pay. But in a House that does not flinch from having an opinion on the remuneration of others, we cannot just ignore the perception or consequences of an increase of our own pay.

[Mr Charles Walker]

I do not think that a single Member of Parliament wants this wretched 1% pay rise. What we wanted was the chance as Members of Parliament to do the right thing and table our own motion to decline it. What we are getting, I am afraid, in a robust speech from the hon. Gentleman on the Front Bench, is Executive posturing at our expense and it does him no favours at all.

[Mr Heath]

The hon. Gentleman is entitled to his opinion, but I think that the House has been given the opportunity to decide whether it wants that 1% pay increase, and it must make that decision.

[Michael Connarty]

I am sure that the hon. Gentleman is approaching a response to the point that I made. Has it not come to everyone’s notice recently that there might be a problem with public sector expenditure? It has been parroted in every speech in the House since the election. Why did the Leader of the House and the Deputy Leader of the House not introduce something to free the SSRB from the formula in which it was trapped, enabling it to make an independent recommendation on our salaries and on which we would not have to vote? Where has the hon. Gentleman been sleeping?

[Mr Heath]

There are two answers to that. First, I am not a member of the SSRB, so I did not know what recommendation it was going to make. If we tried to adjust the so-called independent formula, would we not be having precisely the same debate about the Executive interfering with the will of the House, which had decided to give to that independent body the right to set our pay? It would be said that we were coming in with a formula of our own. I can just imagine the speeches that would be made, and they would be very similar to the ones that have been made this evening.

The hon. Member for Cities of London and Westminster talked about animal intelligence. It occurs to me that if there were a lemmings review body that independently came to the view that a headlong dash into a freezing fjord would be for the best, lemmings ought at least to have an opinion on the matter. What we are providing this evening is an opportunity for Members to consider the consequences before complying with the decision.

In this case, the review body has made it plain that it would not have made the recommendation that it did unless it was constrained to do so. It would have independently come to a view that there should be no increase in our pay this year. I find it difficult to believe that any Member of the House thinks we should be treated differently and significantly better than others working in the public sector.

[Nick de Bois (Enfield North) (Con)]

I am staggered that I should have to make this comment: no one in the House is suggesting that we should take that 1%.

[Mr Heath]

In that case I am extremely pleased, as it means that we will quickly move to a conclusion of this difficult matter. The commitment to independent review is retained. The anomalous position this year is recognised. We do to ourselves what others have had done to them. It is not a decision for Government; it is a decision for the House. Members must make up their own minds, but in my view— and I do not think I am alone—it is a no-brainer. I hope all right hon. and hon. Members will support the motion.

Question put and agreed to.

Resolved,

That the following provision shall be made with respect to the salaries of Members of this House—

(1) For the period beginning with 1 April 2011 and ending with the relevant day, the rates of—

(a) Members’ salaries, and

(b) additional salaries payable to Members under Resolutions of this House in respect of service as chairs of select or general committees, shall be the same as those salaries as at 31 March 2011.

(2) In paragraph (1) the “relevant day” means—

(a) the day before the day on which the first determination of Members’ salaries by the Independent Parliamentary Standards Authority comes into effect, or

(b) 31 March 2013, whichever is the earlier.

(3) Paragraphs (9), (10) and (12)(b) of the Resolution of 3 July 2008 (Members’ Salaries (No. 2) (Money)) cease to have effect on the day this Resolution is passed.

(4) The remaining provisions of that Resolution cease to have effect on 1 April 2011.