Oral Answers to Questions

Nadhim Zahawi Excerpts

Wednesday 2nd June 2010 Commons Chamber

[The Prime Minister]

I would much rather sell the shares in the banks to the hon. Gentleman’s constituents. I believe in popular capitalism, and there might be an opportunity to do that. Clearly, important decisions will have to be made to ensure that we get the maximum amount of money back for the taxpayer, who has had to put so much money into the banks, and that we have a fully competitive banking system that serves business in this country so that it does not get ripped off by the banks. At the same time, privatising those banks back into the private sector where they belong can help encourage popular capitalism once again.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

Q6. Will the Prime Minister join me in congratulating Denys Shortt of Stratford-on-Avon on his nomination as entrepreneur of the year in the Ernst & Young competition—a well-earned accolade? On the question of earnings, was the Prime Minister surprised to learn that so many people in the public sector earn more than he does?

[The Prime Minister]

I join my hon. Friend in congratulating his constituent. Transparency on pay is an important principle, because it is good for democracy and accountability if we know how much people in the public sector are earning. I also think that it will help us to control public spending. When people see how much people are paid in the public sector, the pressure will be on to keep top pay levels down. It would also be worth while having a maximum multiple of 20 times earnings; we are holding a review to get that done. People at the top of a public sector organisation should not earn more than 20 times what people at the bottom earn. It is that sort of progressive idea that we are looking forward to introducing.