Archive for May, 2009
The role of the Speaker of the House of Commons
The Speaker of the House of Commons chairs debates in the Commons chamber. The holder of this office is an MP who has been elected to be Speaker by other Members of Parliament. During debates they keep order and call MPs to speak. The Speaker is the chief officer and highest authority of the House of Commons and must remain politically impartial at all times.
The Speaker also represents the Commons to the monarch, the Lords and other authorities and chairs the House of Commons Commission.
The role of the Commons Commission as the overall supervisory body of the House of Commons Administration is: Appointing staff of the House; Preparing and laying before the House the Estimates for the House of Commons Service; Allocating functions to House departments and Keeping staff pay and conditions broadly in line with those of the Civil Service.
The Members Estimate Committee has the same membership as the Commission. It considers matters relating to MPs’ pay and allowances on behalf of the House of Commons.
Politicians have shown themselves unfit to govern themselves, the House of Commons Commission and Members Estimate Committee should be taken out of their control. It can not be acceptable any longer, for MPs or anyone they directly elect, to have any responsibility for Administration, finances or regulation of MPs.
This Commission should be directly elected by the General Public, for a fixed four year term, with no second term of office. The Commission should be responsible for both the House of Commons and the House of Lords.
The terms of reference should encompass: Regulation and Compliance; Audit and accounting; Salary and benefits; Staff appointments in the; and the Administration and maintenance of the House of Commons and Lords.
MPs really do not seem to have got the point yet about their endemic corruption.
Prime candidates for the position of Speaker, include:
Sir Alan Beith, who together with his wife claimed £178 000 in second home allowances between 2004 and 2008. This included a claim for a £5 457 kitchen and a £219 air-conditioning unit. He also has an external consultancy for which he is remunerated in the region of £20 000 a year. He also decided he needed to claim just over £6 000 in food expenses between 2005 and 2008. Would he have dared try any of these expenses claims with his external consultancy? Really great references for revising the system Beith.
Sir Alan Haselhurst, currently Deputy Speaker and another prime candidate, claimed £12 000 for gardening expenses, including £202 for pea gravel, which I am sure made was absolutely essential to carry out his role as an MP and makes him a suitable person to clean up British Politics. He earns £104 000 a year so a bill for £202 would cause him to struggle.
David Davis, who may or may not stand, felt the need to claim £2 000 to roll and mow his gardens. Thanks Davis, I can’t understand how having your lawn mown is necessary to Parliamentary duties, but I guess I can trust you to deal with excessive claims by MPs.
Sir Menzies Campbell, was so comfortable with his claim of £1 490 for a designers fee, that he has since felt the need to pay it back. But he also feels he is the man to lead reform and stop these outrages claims. Say that again in a language I understand Campbell. You took the money until you were found out then felt you needed to pay it back, but you can be trusted to be honest in the future? Yes, sure, got it now.
John Bercow, can’t quite recall which home was his second and which was declared as his first at a particular point in time he was so busy flipping homes, but is certain he didn’t have to pay Capital Gains Tax. He is such a busy and dedicated Constituency MP, he can only just squeeze in a consultancy paying him about £40 000 a year for a Cayman Island registered business. Like it Bercow, tax havens and clean ups, I am sure you will make a real change to stopping MPs finding loop holes in avoiding taxes.
If these really are the leading Candidates and MPs believe they are appropriate for the role of chairing the Commons Commission, I guess cleaning up and change mean different things to MPs and the rest of the population.
Politicians should not be in a position whereby they have any choice in the people regulating of their tax, pay, pensions, regulation audit or compliance.
I am an MP I need to be compensated
Before politicians decide they need a pay rise, as inevitably they will loose many of their perks and argue strongly they require a pay rise in compensation, it is time for an examination the career aspirations of politicians.
We frequently hear politicians proclaiming, what an honour it is to serve their constituents. I do not wish on this entry to look at the relationship between politicians and those they are meant to serve, rather, to question the expectations politicians have of their ‘career’.
A precept has crept in to politicians minds that they have the right to a career as an MP, through the path of: Hopeful candidate; safe seat; established MP; Minister and possibly to Chancellor or Prime Minister and they appear to assume this is their right of passage.
Disregarding their success on the political career path, many MPs secure plum roles in industry, way above their capability, barring their contacts in Government.
I would argue there is no case for a career path expectation.
Does any one vote in their MP on the basis they need a career and promotion? (Other than the unrepresented consituents for whom the Speaker of the House is their uncontested representative, which is a different debate), Politicians assume this to be the case.
It is due to this career path acceptance, that politicians now insist they require second jobs and a higher salary.
This mind set needs to be reviewed.
A politician is voted in for a period of office and only that period of office. They do not have a right to become an MP leading to a career path.
We will undoubtedly hear a call for politicians to be paid a higher salary in the coming months, but this has no foundation.
The argument provided by MPs is that they could secure a higher salary were they not serving the country; in very few cases would this be true. The majority of MPs are able to secure a decent salary, only after a stint as an MP.
As two simple examples, John Major, turned down to be a Bus Conductor, became the Prime Minister and now secures substantial fees for public speaking. I won’t here question how a failed bus conductor with no money managed to purchase a large property in his constituency just on an MPs salary.
John Prescott a ships steward, who sunk to the position of Deputy Prime Minister, now, secures significant payments for public engagements.
Would a failed Bus Conductor and a Ships Steward, (albeit Prescott became a Shop Steward) really have become household names demanding large appearance fees were it not for their stint in the political arena?
It is pertinent to consider what Politicians expect out of their move in to politics; evidently many see this as a right of passage.
For certain there are politicians who are on a successful career path and would expect to obtain high office in their chosen profession. However it is they who choose to become politicians not someone forcing them. Those on successful career paths appear to see this is a short cut to more fame and power and it is not acceptable.
The premise that a politician has a right to a long career in politics is the root of the problem and this expectation sits in stark contrast to the proclamation that ‘serving my constituents is a privilege’.
There is no reason why an MP takes a second job. If the role is worth the £60,000 a year, then there is no time for a second job.
The fatuous argument that ‘I need to keep in touch with “real people”’, is easily countered; when a politician feels they have lost touch, stand down, take a different job and if latterly they wish to continue as a politician, seek re-election. The counter argument being of course: but then you are left with politicians who know nothing about running a country.
There are plenty of counter arguments to this, including the argument the Conservative Party will present at the next election, never mind one of the most influential politicians in the world, the President of the United States, who doesn’t need a career in politics to be elected to power.
There is no acceptable reason politicians require a higher basic salary on obtaining office as an MP. They have 113 day holiday a year, the trite rubbish about constituency surgeries is a nonsense, (try making an appointment for a surgery in most constituencies) and for the first year of any administration, most people are on a learning curve.
If they wish to serve the people, that is well and good, there are no excuses for second jobs or higher salaries unless the precept that politicians quote is the accepted position.
‘…We need a higher salary to secure the best people and we need second jobs so that we stay in touch….’
If peole wish to serve their constituents, then salary is a lesser argument if it is only a five year term rather than a career option and a second job is irrelevant.
The role of an MP should be to serve their constituents. An argument rages in this country as to whether we vote for a person or a party, which is yet another debating point. In the voting publics mind, there is not a perception that we vote in someone to enhance their career, yet over the coming months this will be unspoken basis of the ongoing argument for a pay rise.
MPs should not have a second job and neither do they need a higher salary. If they do not like the salary the position carries, don’t stand for office. If they feel the need for a second job to ‘keep in touch’ they have been in the role too long.
Aside from all of that, please do not call for MPs to stand down until the contracts for new MPs are changed.
An MP is entitled to a tax free pay off of almost £40,000 if they are voted out of office and more gallingly even though this is written in to their contract, unlike every one else in this Country, who has a severance pay entitlement, they do no have to pay tax on it.
Yes, it was MPs who voted for this exclusion from taxation.
Die for the UK but don’t try and live here
The disgraceful treatment of Gurkhas continues, despite very strong protests, which have been ongoing for years.
Gurkha Corporal Kumar Pun served in the Gurkhas for 14 years, just one month in to a tour of Afghanistan he was killed in a suicide bomb attack.
The first step was to alert his wife Parbati, just 24 hours after his death that she and their children could be ordered out of the UK next year, when their Visa expires.
This position was subsequently changed with the UK Borders Agency stating: ‘…We will not curtail this lady’s leave. We would not seek to remove the widow of any soldier killed in action, whether they are a Gurkha, a foreign or a Commonwealth soldier… A soldier’s spouse or dependants would almost certainly be granted settlement after applying for leave to stay in the UK…’
The statement still leaves a question as to settlement and is not an acceptable position.
Yesterday Wotton Bassett saw the homecoming of four soldiers who died that day, including Corporal Pun, marking the sacrifice made by these men, yet hypocritically at the same time, obfuscating on whether his family had any right to be here.
Corporal Pun Kumar served all over the world, including tours of duty in Bosnia, Sierra Leone, Oman, Kenya, Kosovo and the Falklands. Most of the past decade has been based around living in Britain.
In 1999, Corporal Pun married his wife, he had been serving in the Gurkhas for 3 years, but she wasn’t granted leave to live in this country until 2006, 7 years after they married, when their eldest daughter was three.
It transpires that this is sadly not the end to the appalling way Gurkhas are treated.
In 2007 Gurkhas were given the right to leave their own pension scheme and switch to the regular Army scheme, which provides a widow with a lump sum payout in the event of her husband being killed, it is not known whether Gurkha Corporal Kumar Pun had transferred to the new scheme, so his widow may receive nothing.
Because Corporal Pun only served for 13 years, there is no entitlement to war widow’s pension; they are required to serve 15 years for this entitlement.
It would be better if Britain omitted the word Great, from its self congratulatory name.
There is nothing to be pounding a chest about; service personnel and the families of non-British Nationals who fight for this Country, are treated in a morally reprehensible manner.
RBS – we need bonuses – we need them now
The RBS Board appear to have learnt nothing and are keen to review their perks once again.
In early May RBS reported a loss of £895 million for the first quarter, which compares to a profit of £245 million a year earlier.
Last year the bank managed a loss of £24.1 billion and has an estimated £325 billion of exposed potential uncovered debt, more prosaically termed toxic debt so it doesn’t sound quite so dire. This is being transferred to yet another tax payer bailout, with RBS being liable for £19.5 billion of the debt and paying an insurance premium for £6.5 billion for the risk, bearing in mind the tax payers own 70% of RBS, we the tax payer are in effect paying another set of bureaucrats to insure against a risk, we the tax payer are already covering, money for old rope if you can find a spot in the Quango.
This is the Bank that managed to pay off their former Chief Executive Sir Fred Goodwin a pension amounting to £16 million and is set to pay Gordon Pell, the last remaining executive still on the board from the Goodwin era, a pension worth £9.8 million, when he retires next year.
Looking forward
But it all gets better for the future of RBS Executives though sadly, not for the tax payers who bailed out the bank.
The tax payers will be injecting another £13 billion in to RBS, in addition to the £20 billion already paid to strengthen the balance sheet, with a further £6 billion on stand by.
The Bank is undertaking a restructure and there are resulting board changes.

Stephen Hester CEO RBS
In essence the suggestion by Stephen Hester, Chief Executive is that the bank would be separated into two arms, with the bank’s riskier assets and operations grouped together.
Without going in to the finer details, the headlines are:
Gordon Pell, head of Retail Banking is being replaced by Brian Hartzer, from ANZ. Mr Hartzer, who is not an Executive Board Member, so his remuneration package has not been disclosed, is expected to be paid a £3 million pound handshake,
Chris Sullivan, currently head of the bank’s insurance business, is going to head up Corporate Banking, taking over from Alan Dickinson, who is being moved to Chairman Corporate Banking until he retires next year. His pay off is unknown as he is not a Board Executive.
Brian Stevenson, who runs the group’s global transaction services division will report to Mr Sullivan.
Nathan Bostock will join the lender from Abbey National on June 1 as its news head of risk and restructuring.
Paul Geddes, who currently runs UK retail and reports to Mr Pell, will run the insurance division and become a member of the executive board.
Guy Whittaker, the finance director, is being replaced by October and it is expected he will receive a share award.
It has come to light that several senior bankers at RBS are being paid guaranteed bonuses, this flies in the face of Government Policy and any morally acceptable position. The current FSA rules at present clearly state that the bank must be able to claw back bonuses in the event of poor performance and there must be no rewards for failure. A guaranteed bonus cannot be clawed back.
The argument, few months on from the supposed ‘change of culture’ and wringing of hands of course being, that the best people need to be retained and incentivised, so these rules which sounded good when the situation was daily news, just shouldn’t apply now as we can probably get away with it, as the focus is on MP sleaze and upcoming elections.
I just wonder how many people could do worse than a £895 million loss for the first quarter and if this is the best, are the ‘best’ worth the money?
This becomes more apposite when Stephen Hester said of the results and the likely time scale of RBS returning to profit:
‘…It’s not really in our hands, it’s in the hands of the economy and what it does to our loan books,…’
If it isn’t in the hands of the Executives and it is all down to a bit of luck and wind in the right direction, why pay the executives anything?

Philip Hampton Chairman RBS
But it gets better yet; please step forward Sir Philip Hampton, the Chairman of RBS. It transpires he is in talks with the Government about a new incentive scheme for Executive Bonuses, which are expected to net senior staff awards running into millions of pounds. Once again the argument being, this is how the best people will be recruited and retained. The best people to run a business that is: ‘not really in our hands’.
The proposals focus on how these poor beleaguered bankers can be awarded a bonus when the market is so volatile, with the suggestion being there should be some complex measurement of performance against banking sector peers and FTSE 100 companies. Hardly a fair measure, when this is a business that can’t fail, whilst most of the other businesses in the FTSE 100 do not have Government subsidies running to the tune of £ billions and are in sectors or markets which can fail.
These negotiations will only cover this financial period, the period in which the prospects are ‘not really in our hands’ as the FSA are looking at a new set of rules for the coming future.
RBS has learnt nothing and the moral decay continues.






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