---

Members' Salaries, Pensions and Allowances

Members' remuneration—our pay—is different from the reimbursement of expenditure. As far as ensuring public confidence in how we go forward is concerned, it is right that the Prime Minister has asked for there to be an independent external review. Of course, the Members Estimate Committee can decide what it does; of course it can decide to consider the issue mentioned by the right hon. Gentleman and propose a memorandum to the Sir John Baker review. It does not need a resolution of the House for that; under the leadership of Mr. Speaker, the Committee can do what it sees fit. However, I urge the House against mandating the Committee to carry out an exactly parallel review to the one that the Government resolution asks to be done independently. Amendment (f), in the name of the hon. Member for North Devon (Nick Harvey), would have the effect of implementing SSRB recommendations 2 and 3, so that MPs' pay would be uprated for 2008-09 onwards by the increase in base pay of the senior civil service and MPs would receive a £650 supplement for 2008-09, with the proviso that the award would be staged to ensure that MPs' pay for 2008-09 increased by only 1.9 per cent. Amendments (g), in the name of the hon. Member for North Southwark and Bermondsey (Simon Hughes), and (d) in the name of the hon. Member for Christchurch (Mr. Chope), would both leave the current system in place. In the case of amendment (g), that would be until such time as a new system had been agreed. I have already outlined the Government's reasons for not accepting the SSRB's proposals on Members' pay. However, we are seeking to rescind the existing arrangements so that we clear the decks and the House can resolve the issues as soon as possible and before the summer recess. Incidentally, the 1.9 per cent. proposed for 2008-09 in amendment (f) would extend the 1.9 per cent. that we ask the House to accept for April 2007-08 until April 2008-09. That is not what the Government propose for the rest of the public sector. I hope that the hon. Members who have tabled the amendments will withdraw them; if they do not, I ask the House to vote against them. I turn to amendment (a), on Members' allowances, in the name of the hon. Member for Cities of London and Westminster (Mr. Field). He has proposed that the Members Estimate Committee look into recommendation 29 of the SSRB report which suggests an immediate increase in the London supplement from £2,812 to £3,500; henceforth, he also proposes that it should be adjusted in line with the public sector average earnings index. I realise that the hon. Gentleman has a long-standing concern over the issue and that he submitted evidence to the SSRB on that point. However, the Government reject the proposal because the London supplement is not, like other allowances, a reimbursement for costs—it is part of taxable income. I turn to amendment (b) on Members' allowances, tabled by the hon. Member for North Southwark and Bermondsey. Although we support the intention—namely, that the increases in staffing allowance should take effect from 1 April this year—and although I think I can say that that would already be the broad intention of the Members Estimate Committee, it is difficult to be certain at this point that all the necessary systems would be in place by then. It therefore might be wiser not to specify a date. However, the intention of the amendment is accepted: 1 April for the start of the increase for the salaries of Members' staff. I hope that the House will support the Government's position on this year's pay. It keeps us within the pay discipline that has applied to others in the public sector. I also hope that the House will agree that we should finally put an end to the inappropriate practice of MPs voting for their own pay.