Markets and the ‘gravy train’
Sunday, April 27th, 2008Sorry to have been missing from the action for so long, but I have just come back for a brief break in Paris - very enjoyable but phew! prices have really rocketed since the last time I was there. Part of it is obviously the fact that the Euro is riding high, but even allowing for that prices in restaurants set us back on our heels. And I used to warn visitors from abroad that London prices were high…
Enough of that. In one of the entries below headed ‘Cut and dried at last’, or something like that, I commented on the furore over the salaries we are paying top officers. I don’t propose to add to that here except to point out the tyranny of the ‘market’. If officers see their contempraries earning more than them, they want the same even if they don’t need the money. It’s exactly the same process as happens in private industry with directors and CEOs leapfrogging themselves without any relevance to their comparative competence.
Some time ago I read a quote from the CEO of a public company in which he said (among other things) ‘If I see old Joe from a comparable company getting a million a year, then I want at least that or I feel undervalued.’
And, of course, if the company makes a duff choice he has to be receive a ludicrous pay-off plus gold-plated pension arrangements. In local government we haven’t reached that stage yet.
I must point out that the above does not apply to elected members, including elected mayors, because the only ‘market’ for their services is local.
Nevertheless, expect to see an increase in local members allowances under the new unitary regime. Bedford has always been one of the lowest payers for councillors, but now there will be fewer councillors (halved from 74 to 37) so they will have to take on more work, especially in the transition period when we will all be working flat out. I assume the salary of the mayor will go up because Bedford’s is the lowest of all 12 elected mayors (not including the London mayor). I don’t expect your sympathy, nor do I seek it, but with increased responsibility should come increased salary.