Next Governor of the Bank of England, Mark Carney, defends £800,000-a-year pay and perks package - Home News - UK - The Independent

Next Governor of the Bank of England, Mark Carney, defends £800,000-a-year pay and perks package

Relaxed but no revolutionary, Mark Carney keeps banking reform on the table

The next Governor of the Bank of England, Mark Carney, has been forced to defend his £800,000-a-year deal under questioning from MPs.

Mr Carney’s base salary of £480,000 is more than that of his US and European equivalents combined – and he will also receive a £250,000 housing allowance on top.

“I was offered these terms and I accepted them,” he said, pointing out that allowing for the fact that he will not receive a Bank of England pension means that his package is “equivalent” to that of his predecessor Sir Mervyn King.

Justifying the housing allowance, Mr Carney pointed out that London was a far more costly place to live than his present home city of Ottawa. “I am moving from one of the cheapest capitals in the world to one of the most expensive,” he said.

Mr Carney used his appearance before the Treasury Select Committee to call for a public debate over whether the central bank’s existing inflation should be overhauled, in order to drag the ailing UK economy out of its two-year stagnation.

In his first public appearance since he was named by George Osborne as Sir Mervyn’s successor, Mr Carney said he could see the advantage in discussing reforms of the central bank’s 2 per cent annual inflation mandate. “I think there is merit in debating the framework and coming to a relatively quick conclusion,” he said.

However, Mr Carney, who is presently the governor of the Canadian central bank, distanced himself from the speech he made in Toronto two months ago where he seemed to suggest that central banks could be given a growth objective known as an NGDP target.

“If there’s a debate it [NGDP targeting] wouldn’t be my contribution,” he said, dashing the hopes of those who wanted him to advocate a radical shake-up at the Bank.

It emerged during the hearing that the reform Mr Carney has in mind is a more relaxed version of the existing inflation targeting regime, whereby the central bank would commit to keep interest rates low until growth returns strongly, or until unemployment falls below a certain threshold.

Mr Carney added, however, that there was a “high bar” to be cleared by any reform proposal because the existing inflation targeting framework, in place since 1997, had performed well.

The Chancellor welcomed Mr Carney’s Toronto NGDP speech in December, but, along with the incoming Governor, the Treasury appears to have cooled on the idea of radical alterations to the Bank’s mandate in recent weeks, despite the fact the economy contracted again in the final three months of last year.

Despite the taut early exchanges over his pay deal, Mr Carney, who worked for 13 years at the US investment bank Goldman Sachs, soon relaxed and appeared to charm MPs on the committee. “All excellent questions,” he responded to Conservative MP Andrea Leadsom, who was probing his views on making customer bank accounts fully portable.

The session, which lasted three hours 40 minutes, left many members of the committee visibly flagging – their numbers had been whittled down from 11 to 9 by the end. But Mr Carney was still delivering detailed and fluent answers on details of bank accountancy right up until the point when chairman Andrew Tyrie called a halt to proceedings.

News
John Travolta is a qualified airline captain and employed the pilot with his company, Alto
people'That was the lowest I’d ever felt'
Life and Style
healthIt isn’t greasy. It doesn’t smell. And moreover, it costs nothing
News
peopleThe report and photo dedicated to the actress’s decolletage has, unsurprisingly, provoked anger
Property
Home body: Badger stays safe indoors
property
PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksAn unforgettable anthology of contemporary reportage
News
The programme sees four specialists creating what they believe are three perfect couples, based on scientific matchmaking. The couples will not meet until they walk down the aisle together
tvUK wedding show jilted
Arts and Entertainment
US pop diva Jennifer Lopez sang “Happy Birthday” to Gurbanguly Berdimuhamedow, president of Turkmenistan
musicCorporate gigs become key source of musicians' income
Arts and Entertainment
You've been framed: Henri Matisse's colourful cut-outs at Tate Modern
artWhat makes a smash-hit art show
Arts and Entertainment
While many films were released, few managed to match the success of James Bond blockbuster 'Skyfall'
filmsDaniel Craig believed to be donning skis as 007 for first time
Sport
Mikel Arteta pictured during Borussia Dortmund vs Arsenal
champions league
Voices
Yes supporters gather outside the Usher Hall, which is hosting a Night for Scotland in Edinburgh
voicesBen Judah: Is there a third option for England and Scotland that keeps everyone happy?
Arts and Entertainment
Pulp-fiction lover: Jarvis Cocker
booksJarvis Cocker on Richard Brautigan
Arts and Entertainment
Robin Thicke and Pharell Williams in the video of the song, which has been accused of justifying rape
music...and he had 'almost no part' in writing it
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

HR Manager - Kent - £45,000

£40000 - £45000 per annum: Ashdown Group: HR Manager / Training Manager (L&D /...

Senior QA Engineer - Agile, SCRUM

£35000 - £50000 per annum + benefits: Ashdown Group: Senior QA Engineer (Agil...

Marketing Executive - West Midlands - £28,000

£26000 - £28000 per annum: Ashdown Group: Digital Marketing Executive (SEO, PP...

Retail Business Analyst

£40000 - £50000 Per Annum: Clearwater People Solutions Ltd: Our retail client ...

Day In a Page

Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week