Members’ Salaries

John Bercow Excerpts

Monday 21st March 2011 Commons Chamber

[The Leader of the House of Commons (Sir George Young)]

I beg to move,

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.

We move now to MPs’ pay. [Interruption.] Mr Speaker—

[Mr Speaker]

Order. I apologise for interrupting the right hon. Gentleman. I fully understand that right hon. and hon. Members are not that interested in hearing speeches about their own pay, but I hope that as a courtesy to the Leader of the House those Members who are disinterested and inclined to leave the Chamber will do so quickly and quietly, so that those who wish to hear the Leader of the House can do so.

[Sir George Young]

The whole House will be keenly aware of the country’s difficult financial situation, and both sides of the House accept that we have a substantial structural deficit, which must be brought down. The Government have had to take difficult decisions throughout the public sector, including imposing a two-year pay freeze on public sector workers earning more than £21,000. Hon. Members must now decide whether their constituents would welcome Parliament exempting itself from that policy and thus insulating itself from decisions that are affecting households throughout the country, or whether, as I believe, the public expect their elected representatives to be in step with what is being required of other public servants. I believe that it is right for us, as Members of Parliament, to forgo the pay increase that the current formula would have produced.

--- Later in debate ---

[Sir George Young]

There is no intention of doing that.

The Government’s policy is to have a public sector pay freeze for those earning more than £21,000 a year. Members of Parliament clearly earn more than that. I think that it would be unacceptable for those earning just more than £21,000 to have no increase and for Members of Parliament earning three times that sum to get a salary increase of about £650. That is why I think it is right this evening to ask the House to freeze our salaries. I very much hope that the House will approve the motion in my name and that of the Deputy Leader of the House.

[Mr Speaker]

I have not selected the amendment, so the Question is as on the Order Paper.

--- Later in debate ---

[Mr Mark Field (Cities of London and Westminster) (Con)]

It is universally accepted by anthropologists that one sign of higher animal intelligence is the ability to learn from experience. As the Leader of the House moved the motion, one was inclined to ask, “Have we in the House of Commons learned nothing from the calamity of the expenses scandal?”

I agree with hon. Members who said that the general public must be dismayed at Parliament’s continuing inability to put its house in order in relation to such matters, especially in view of the tumultuous events out there in the real world. How can we earn public respect and work in the national interest to solve this country’s acute economic problems and to reform public services, let alone to assert Britain’s place in the world, which we debated earlier, when we have so abjectly and continually failed to sort out our immensely damaging internal difficulties?

As the Leader of the House pointed out, after the expenses scandal, Parliament charged Sir John Baker, the then retiring SSRB chairman, to conduct a review. He was asked to make recommendations for a mechanism by which the pay and pensions of MPs could be independently determined—one that did not involve MPs voting on their own pay. His report, which was published in July 2008, recommended that MPs’ pay should be uprated annually in line with the public sector average earnings index, with a more general review of MPs’ salaries by the SSRB to take place in the first year of each Parliament.

That was supposed to be the end of the matter, with the embarrassing spectacle of MPs setting their salaries becoming a thing of the past—or so we thought. Of course, the unredacted receipts were published by The Daily Telegraph in May 2009, and suddenly the entire political class blissfully agreed on the root of the problem. Members and political commentators acknowledged that the widespread misuse by many MPs—I am afraid that it was many MPs—of second home and staff budgets, which as we all know helped to terminate several dozen parliamentary careers, came about largely as a result of Parliament voting down independently awarded salary increases.

For many years, the Executive have been overly concerned by the immediate public reaction to headline salary uplifts. As a result, subsequently, a blind eye was continually turned to the widespread misuse of the parliamentary expenses scheme, which became an income-enhancing allowance. Since the ground-breaking public revelations in The Daily Telegraph, the universal refrain from Parliament’s great and good—the Speaker’s Commission, the Members Estimate Committee and the Standards and Privileges Committee—was that the expenses system had been rotten for decades, yet those same MPs did their utmost to block meaningful reform of the now much-maligned expenses system, almost until the very day when The Daily Telegraph first published those receipts. Indeed, all the systematically suspect claims were defended resolutely by those distinguished, senior parliamentarians as being within the rules—which parliamentarians had made.

Small wonder that those parliamentarians waged such a disastrous, protracted campaign in the High Court between 2006 and 2009—in all of our names, I am afraid—to prevent the publication of expense receipts. They knew full well the public reaction that would follow.

I am particularly sorry to say that the Leader of the House, in his previous role as Chairman of the Standards and Privileges Committee, was one such senior parliamentarian. That makes his attempt to drive through the motion tonight all the more regrettable. Of all people, he knows how we got here. On 30 April 2009, just two weeks before The Daily Telegraph balloon went up, the Leader of the House, in league with other politicians, put down a serious—

[Mr Speaker]

Order. I very gently say to the hon. Gentleman that I understand the issues that surround the motion, but we have a time-constrained debate, and it is incumbent on him to focus on the terms of the motion rather than ancillary matters.

[Mr Field]

I was coming to the end of this passage, Mr Speaker.

At that juncture, however, the Leader of the House allowed the glaring loophole in relation to second home allowances for MPs in suburban seats to be overlooked, on the basis that the independent review that we are now awaiting should report first. I only wish that today he was such a keen supporter of independent reviews. I believe that the independent salary review that the SSRB and IPSA were due to commence in the next few months would also have provided a long overdue opportunity to rebalance and aggregate MPs’ remuneration away from the byzantine and almost corrupt allowances scheme, towards a more upfront and transparent salary, which is why it is particularly regrettable that the second part of the motion is being proposed tonight. I fear that that opportunity will now be lost.

For the sake of one day’s good newspaper headlines, Parliament has unwisely insisted that we set our own salary again and impose this two-year freeze. As I mentioned earlier, the calamitous expenses system began in just such a way by rejecting independent salary reviews and then boosting allowances as some form of compensation. In my view, even the mere suspicion that this was happening again would be totally unacceptable and disastrous, as we try to build public trust. Such a process of rebuilding will be difficult enough in the years ahead, given the constant backdrop of high-profile criminal cases currently going to the courts. I do not wish to prejudge any of the other expenses conflicts, but I suspect that potentially there are several more former and sitting Members whose affairs will move from police investigation to the Crown Prosecution Service and then the Crown court in the months ahead.

[Mr Speaker]

Order. The difficulty here is that the hon. Gentleman has got a prepared text, to which he is sticking closely. However, I have already advised him that he must not dilate on matters that do not relate directly to the motion. I feel sure that being an experienced parliamentarian he will now turn to the matters within the motion. If he does not wish to do so, he can remain in his seat.

[Mr Field]

I shall take on board what you say, Mr Speaker, although—

[Mr Speaker]

Order. May I make it clear that it is not a question of taking on board what I say? I am saying to the hon. Gentleman, without fear of contradiction, that I have given a ruling, and to that ruling he will adhere.

[Mr Field]

I shall adhere to your ruling, Mr Speaker.

If we pass the motion on salaries tonight, amidst a self-satisfied blaze of glory, it will be essential that we also resolve that, whatever changes are made to the IPSA allowances scheme, none will come into effect until April 2013. In short, it must be a two-year freeze on both salaries and all allowances.