Localism Bill

Justin Tomlinson Excerpts

Tuesday 17th May 2011 Commons Chamber

[Heidi Alexander]

I am not sure that the hon. Gentleman was listening. I said that I accepted pay transparency is a good thing at both the top and the bottom of an organisation. I accept that the previous Government could have brought forward measures to insist on pay transparency and I know that some local authorities were transparent. Many have independent remuneration panels that would take decisions about councillor pay. I know that my own local authority is certainly looking at having an independent panel to review executive pay. My point is that we should shine a light on abuses, but that this constant barrage is disproportionate.

These measures are, in my view, all about the Secretary of State getting a headline. Listening to him, anyone could be forgiven for thinking that if only 600-odd council chief executives were paid less, the national budget deficit would be dealt with. It will not. This is a complete red herring. Let us take the example of my local authority of Lewisham. The council’s overall pay bill is £280 million, which pays for thousands of staff. The top 32 jobs of senior management account for £4.1 million; the five executive directors and the chief executive cost the council in the region of £1 million. Yes, £1 million is a huge amount of money, but we have to take account of these individuals’ responsibilities and the repercussions they might face if they gave bad advice, took bad decisions or implemented bad management. When politicians make a bad decision, they might lose an election, but council officers doing the same could end up in prison.

[Justin Tomlinson (North Swindon) (Con)]

The responsibility of chief officers has not changed. The last Government actively encouraged councils to be rewarded in inspections for being seen to pay high salaries, because that appeared to make the same officers better officers.