Executive Pay

Debate between Tessa Munt and Vince Cable

Monday 23rd January 2012 Commons Chamber

[Vince Cable]

I am actually. I realise that when I first raised the issue of responsible capitalism 18 months ago, I was denounced in parts of the press as a Marxist. I thought I had left that behind, but apparently not.

[Tessa Munt (Wells) (LD)]

I am sure that my constituents will be absolutely delighted with the arrangements for more transparency and, in particular, increased shareholder power. I wonder whether the Secretary of State will consider the fact that Somerset county council has imposed a pay freeze and is making people redundant—indeed, it sends me a Christmas card, at the same time as it is shutting libraries and slashing youth services—and is now considering abandoning youth carers, to save a paltry £70,000. Will he consider applying exactly the same principles of transparency and shareholder power—or in this case taxpayer power—to councils and their pay and bonuses arrangements for senior management?

[Vince Cable]

Mercifully, I am not responsible for local government, but there are certainly moves afoot, which my hon. Friend is aware of, to ensure much greater transparency in pay. Will Hutton prepared a report for Government with some good recommendations, which include those she mentioned.

Higher Education and Student Finance

Debate between Tessa Munt and Vince Cable

Tuesday 12th October 2010 Commons Chamber

[Vince Cable]

I do not know the full details of the financial position of the university of Bolton, but I would have thought that it could draw two sources of strength from our approach. First, our approach encourages part-time students by making university more financially attractive for them. Secondly, Bolton can choose to attract students by offering a lower graduate contribution, which it may well succeed in doing.

[Tessa Munt (Wells) (LD)]

What steps are the Government taking to encourage the development of a greater endowment base for university funding, thus eventually reducing universities’ reliance on taxpayers and students? If the Government are about to dispose of a large number of properties and fixed assets, should not the proceeds be used for long-term investment rather than as a one-off boost to Government funds?

[Vince Cable]

I have not referred to endowments, but it is probably fair to mention that there is quite a substantial section on them in the Browne report, which I hope that hon. Members look at. The report says that endowments are a potential additional source of finance beyond graduates and the Government. As my hon. Friend will know, endowments are a major source of funding in the United States, and they need to be made attractive and encouraged in this country. Obviously, I cannot predict what the Chancellor of the Exchequer will do in his next Budget, but such encouragement relates in large part to tax treatment.