Localism Bill
Debate between Heidi Alexander and Andrew Percy
Heidi Alexander
I am conscious that many hon. Members wish to speak, so I shall limit my comments to a few. I applaud the hon. Member for Bradford East (Mr Ward) for his speech. I did not anticipate hearing comments like that from the Government side of the Chamber, but he is a man who says it as it is, and I respect his views and the way he put them.
I shall focus on two aspects of this group of new clauses and amendments: senior pay policy, dealt with in new clauses 27 and 28, and powers to make supplemental provision, as set out in amendment 37 to clause 5. Bringing transparency to senior council pay is entirely right. I accept that some people might have been paid excessively in some circumstances, but this constant bashing of chief executives and senior council officers by Ministers does a complete disservice to people who do an incredibly difficult job in councils up and down the country. Some of these people will have worked their whole lives in local authorities; others might have left good private sector jobs to work there.
Andrew Percy (Brigg and Goole) (Con)
The hon. Lady is adopting a strange position in defending the massive increase in pay at the top of the public sector. Does she accept that her Government could have done something about transparency? When she talks about a disservice, is not the real disservice to the electors of our communities who have to pay the bills for these people who have earned incredible amounts of money over the last few years?
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.