Debate: Senior Management Pay

15:27
Janet Finch-Saunders
I do accept that the Welsh Conservatives were right to put amendments in the Local Democracy (Wales) Bill that would include all senior managers, not just chief executives, and, sadly, no other party in this Chamber supported us.

Even eye-watering salaries like these do not actually stop those who feel that they’re entitled to more. I think recent examples of this again include the actions of Carmarthenshire County Council’s chief executive. A recent ‘Week In, Week Out’ programme highlighted the £200,000 salary of Betsi Cadwaladr University Local Health Board’s chief executive, and then the severance payment of £470,000. Salaries of this scale are shocking at a time when we see our A&E nurses describing their own work as undervalued, underpaid and as worse than being in a war zone. Following two police investigations and a vote of no confidence, Pembrokeshire’s chief executive walked away with a severance package of £280,000. Again, Mark James of Carmarthenshire County Council, who was found to have unlawfully authorised a tax avoidance scheme, could now potentially receive a severance deal worth £446,000. I certainly hope that the councillors, predominantly Labour, will vote against that move.
 

Salaries of this scale are demoralising to those workers delivering our vital services across Wales, and we’ve seen walkouts of hundreds of people. Patchy job evaluation processes often result in some higher salaried officials receiving more, and those in lower paid jobs receiving less. These are challenging times with very tight public expenditure. We’ve seen the local government settlement reducing budgets by an average of 3.4%. This kind of pay-off is not acceptable. Wales and the Welsh Government must play its part in paying back the deficit of the previous Labour Government. Allowing individuals to earn more than the First Minister of Wales and the Prime Minister is a no-no. Aided by a lack of Welsh Labour Government leadership, examples of over-inflated payments to senior managers have had a demoralising effect on our public services. I’m really jolly proud that Welsh Conservatives were the first party in this Chamber in this term to really get to grips with the issue and force the hand of the Labour Government in the local democracy Bill. Now, we thought about all senior management pay and the work of the remuneration board, but again, I would say that that work needs to be closely monitored. I agree with the committee’s report that decisions over pay should be open and transparent and accountable. Far too often, decisions have been taken away, above those who they actually affect. Having accepted the recommendations made by the committee, I ask the Welsh Government today to tell me how you will deliver real change. When will a clear rationale be set out to detail how pay should be set in any new structure that is introduced, and, also, any existing structures?
 
All information on organisational pay must be published together in an easily accessible part of websites. Having carried out work into the publication of pay statements, which are, sort of, mentioned, I can tell you that there is gross inconsistency across Wales. Many of these recommendations are obvious and, actually, shouldn’t have to be written down. Thank you again for the report. Please, Minister, take note