Executive Pay
Debate between Tessa Munt and Vince Cable(12 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text
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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
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.