MPs to face 'fast track' scrutiny over pay

DONALD MACINTYRE

Political Editor

The Senior Salaries Review Board - the body which fixes the pay of the most senior civil servants - is expected to carry out a fast-track inquiry into the sensitive issue of MPs' pay, with the possibiity of reporting by this June.

Negotiations between the main political parties were being finalised last night, ahead of an expected announcement today that the issue will be examined by the board, which already has a remit to report on parliamentary pay.

In a concession to more than 300 MPs, of all parties, who wanted Lord Nolan's committee on standards in public life to investigate the issue, the terms of reference are expected to allow for the board to consult with Lord Nolan on how pay could be affected by the new curbs on outside interests approved by MPs last year.

The inquiry will cover not only salaries (currently pounds 34,000 a year) but also secretarial and office allowances (currently pounds 42,754 a year) and pensions. In addition, it will cover ministerial salaries in the light ofcomplaints that they are underpaid, especially after having pounds 10,000 of their MP's salary "docked" in measure taken by Lady Thatcher when she was Prime Minister. the issue of ministers' pay was highlighted by the unexpected resignation of Tim Eggar, the Minister of State for energy, who is to pursue a career in the private sector.

The use of the Senior Salaries Review Board will excite expectations among some MPs that they could be lifted into a new salary league. Previously, MPs were linked to Grade 6 of the civil service, but the Review Board covers only Grades above Grade 5 - paid around pounds 10,000 a year more than the old Grade Six.

An early report - before the general election and probably before the summer recess - would mean that outgoing MPs, many of whom have signed the Early Day Motion, would benefit from any improvement in pension arrangements.

Leaders of all parties have apparently agreed to get the announcement on MPs out of the way before Thursday's announcement of next year's pay awards for over 1.3m public sector workers. These are expected to be about four per cent.

Meanwhile, anger has surfaced among MPs at the adverse publicity given to suggestions that some could be seeking to double their salaries. In response to a question from Bob Parry, the left-wing Labour MP for Liverpool Riverside, Tony Newton, Leader of the Commons, said he had no plans to require lobby journalists to declare "their salaries, employers' pension contributions, and allowances" in return for retaining Commons accreditation.