Value for money?
Mark Wallace 11:48amWith recession tightening its grip, the taxpaying public are more concerned than ever about the size of the tax burden, the efficiency of public services and getting value for money from the state.
It is for that reason that the TaxPayers’ Alliance has published the third annual Public Sector Rich List, which provides a full run-down of the 387 public sector employees from 140 different organisations whose total remuneration in 2007-08 was above £150,000.
With ordinary people footing the bill not only for these individuals’ large salaries, hefty bonuses and generous pensions, but also for the services and organisations they run, the list provides a crucial opportunity for taxpayers to hold their employees to account.
Unfortunately, there are a number of individuals on the list who are effectively being rewarded for failure. Some of them (such as Adam Applegarth, former Chief Executive of Northern Rock, Sir Ian Blair of the Met and Paul Gray, former Chairman of HMRC) have since resigned, floating off into the sunset on taxpayer-funded golden parachutes. Others, though, are still in post despite their serious failures. For example, Iain Coucher, Chief Executive of Network Rail, tops the rich list on £1,244,000 despite the appalling failures in track maintenance that have caused huge disruption to passengers.
The list as a whole reveals a costly trend, too. Shockingly, the average year-on-year rise enjoyed by those on the list was 10.9% between 2006-07 and 2007-08, far above the national average and way above the Government’s 2% target for the public sector. Such an increase is not only costly, it is hypocritical and damaging to the important drive to enforce pay restraint across the public sector.
Above all, the Public Sector Rich List is an exercise in transparency and accountability. This is your money, and they are your employees: take a look through the list and consider whether you are getting value for money.
Mark Wallace is Campaign Director for the Taxpayers' Alliance.
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HJ
November 24th, 2008 12:44pm Report this commentI don't think the list includes any GPs either as they are nominally self-employed contractors to the NHS, even though all their income comes from government and they are part of the NHS pension scheme. If you consider the higher earning GPs, the number earning above £150k in the public sector would be much larger
dennis
November 24th, 2008 12:48pm Report this commentPerhaps someone will suggest to Brown and Darling that, as an example to us all, and an acknowledgment of their own part in bringing about the downturn, they should themselves take only half-pay for the duration of the recession.
geoff
November 24th, 2008 1:04pm Report this commentIronic. I suppose this means the TPA favours increasing the tax on these people?
Or are we supposed to be worried they will now go overseas.
If you were designing a piece of research to blow apart the idea that people earning more than 150k a year can all move to the US or monaco you couldnt do a better job.
Simone
November 24th, 2008 1:11pm Report this commentPay them less now! They are not worth the money.
But dont increase their taxes or they will leave the country.
TPA = timing pretty abysmal
SDR
November 24th, 2008 1:13pm Report this commentThere are indeed GPs who earn more than £150,000, but VERY few exclusively from the public purse. The private element of their remuneration (which varies enormously)is excluded from the NHS pension scheme.
Jo
November 24th, 2008 1:14pm Report this commentThis is an outrage. What a waste of money.
Increase the tax rate on these people now!
Seriously though, arent most of these salaries set at market rates? Clearly bodies like channel 4 and royal mail and northern rock are basically competetive enterprises
Rhoda Klapp
November 24th, 2008 1:38pm Report this commentIf they are at market rates, they won't mind being asked to find alternative employment in the private sector, will they ? This has always been a con, whether for public sector employees or for the director's pay mutual appreciation fiddle.
True Bred Pomponian
November 24th, 2008 1:52pm Report this commentThe reality is that public sector employment has become the dole for the middle-classes. An income for all those graduates who can't hack it in the private sector.
Colin.
November 24th, 2008 2:22pm Report this commentMaybe the Tories should decline to reply to the PBR today?
Why doesn't Osborne stand up and say that, due to the weasels in previous budgets and due to the fact that this PBR merits a reasoned well analysed response, they'll get back to us in a few days.
This would send two very clear signals: Firstly, that the Tories feel the stakes are so high for the nation that they'll keep their powder dry until they've spotted all the weasels and secondly, that they, along with the rest of us have had enough of labour's cynicism. They should follow it up by refusing to table any questions on any subject at PMQ's.
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