Oral Answers to Questions

Gregg McClymont Excerpts

Thursday 2nd February 2012 Commons Chamber

[Mr Prisk]

The changes that Professor Löfstedt has identified are not about reducing safety at work; they are about cutting unnecessary red tape. That is clear; indeed, it is why one Opposition Member has been part of that panel and has supported its proposals, which this Government will implement.

[Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)]

2. For what reasons he does not plan to implement all the recommendations of the High Pay Commission.

[Mr Wayne David (Caerphilly) (Lab)]

12. For what reasons he does not plan to implement all the recommendations of the High Pay Commission.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

I welcome the High Pay Commission’s valuable contribution to this debate. The proposals that I announced to the House last week drew on its analysis, and we are taking forward 11 of its 12 recommendations either in full or in spirit. We have chosen not to implement its recommendation requiring workers to be put on all remuneration committees.

[Gregg McClymont]

Most people in this country would consider £180,000 a year to be high pay. Will the Secretary of State tell the House who signed off the special dispensation with Her Majesty’s Revenue and Customs regarding the extraordinary tax arrangements of Mr Ed Lester, the chief executive of the Student Loans Company?

[Vince Cable]

I understand that there is to be an urgent question shortly, when hon. Members will be able to go into that issue in detail if they wish. I simply say that this concerns an exceptionally useful individual who has helped to turn around that organisation. The arrangements under which the negotiations took place involved substantial value for money for the taxpayer and a tax cut by the individual. We will pursue matters of public concern on the tax issues, and the answers will be given by the Chief Secretary to the Treasury in response to the urgent question.

--- Later in debate ---

[Mr Davey]

I am sorry that after the initial e-mail sent just before Christmas there was no substantive follow-up. I apologise to the right hon. Gentleman’s constituent, but the Secretary of State has now written to the right hon. Gentleman, as he acknowledged, and I confirm that officials of the Insolvency Service who exercise those powers will now make contact with his constituent as he has requested.

[Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

My Department has a key role in supporting the rebalancing of the economy and business to deliver growth while increasing skills and learning.

[Gregg McClymont]

A moment ago, the Minister for Universities and Science referred to student loan repayments, which the right hon. Gentleman will know are deducted at source, which is more than can be said for the extraordinary contract awarded to Mr Ed Lester of the Student Loans Company. Will the Minister explain why he signed off those extraordinary tax avoidance arrangements?

[The Minister for Universities and Science (Mr David Willetts)]

Let me be absolutely clear that this arrangement is set out very clearly in the Student Loans Company annual accounts. If Labour Members had cared to study the report, they would have seen on page 42 a completely transparent account of the arrangements for Mr Ed Lester’s reimbursement. It is set out very clearly there. The payments are to the recruitment consultancy company that found him, and he was appointed on an interim basis to tackle a disaster in the SLC that we inherited from the Labour Government. We of course recognise the importance of ensuring that proper arrangements are in place and will continue to monitor the situation, but I can inform the House that we have agreed that, for the remainder of the chief executive’s contract, the SLC will account for PAYE and national insurance at source.