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Vol. 769 Wednesday No. 131 23 March 2016 PARLIAMENTARY DEBATES (HANSARD) HOUSE OF LORDS OFFICIAL REPORT ORDER OF BUSINESS Questions Companies: Remuneration............................................................................................................2371 Property: Shared Ownership ........................................................................................................2373 Palestinian Authority Television ..................................................................................................2375 Army: Helicopter Pilots ...............................................................................................................2378 Enterprise and Regulatory Reform Act 2013 (Consequential Amendments) (Bankruptcy) and the Small Business, Enterprise and Employment Act 2015 (Consequential Amendments) Regulations 2016 Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2016 Motions to Approve ......................................................................................................................2381 Environmental Permitting (England and Wales) (Amendment) (No. 2) Regulations 2016 Third Parties (Rights against Insurers) Regulations 2016 Motions to Approve ......................................................................................................................2381 NHS (Charitable Trusts Etc) Bill Third Reading................................................................................................................................2381 Housing and Planning Bill Committee (9th Day)...................................................................................................................2382 Greater Manchester Combined Authority (Election of Mayor with Police and Crime Commissioner Functions) Order 2016 ............................................................................................2412 Tees Valley Combined Authority Order 2016 Motions to Approve ......................................................................................................................2427 Brussels Terrorist Attacks Statement .......................................................................................................................................2427 Housing and Planning Bill Committee (9th Day) (Continued) .............................................................................................2439 High Speed Rail (London—West Midlands) Bill First Reading .................................................................................................................................2518 UK Convergence Programme Motion to Approve........................................................................................................................2519 Royal Assent......................................................................................................................................2520 Grand Committee Budget Statement Motion to Take Note.............................................................................................................GC 363 £4·00 Lords wishing to be supplied with these Daily Reports should give notice to this effect to the Printed Paper Office. No proofs of Daily Reports are provided. Corrections for the bound volume which Lords wish to suggest to the report of their speeches should be clearly indicated in a copy of the Daily Report, which, with the column numbers concerned shown on the front cover, should be sent to the Editor of Debates, House of Lords, within 14 days of the date of the Daily Report. This issue of the Official Report is also available on the Internet at www.publications.parliament.uk/pa/ld201516/ldhansrd/index/160323.html PRICES AND SUBSCRIPTION RATES DAILY PARTS Single copies: Commons, £5; Lords £4 Annual subscriptions: Commons, £865; Lords £600 LORDS VOLUME INDEX obtainable on standing order only. Details available on request. BOUND VOLUMES OF DEBATES are issued periodically during the session. Single copies: Commons, £65 (£105 for a two-volume edition); Lords, £60 (£100 for a two-volume edition). Standing orders will be accepted. THE INDEX to each Bound Volume of House of Commons Debates is published separately at £9·00 and can be supplied to standing order. All prices are inclusive of postage. The first time a Member speaks to a new piece of parliamentary business, the following abbreviations are used to show their party affiliation: Abbreviation Party/Group CB Cross Bench Con Conservative DUP Democratic Unionist Party GP Green Party Ind Lab Independent Labour Ind LD Independent Liberal Democrat Ind SD Independent Social Democrat Ind UU Independent Ulster Unionist Lab Labour LD Liberal Democrat LD Ind Liberal Democrat Independent Non-afl Non-affiliated PC Plaid Cymru UKIP UK Independence Party UUP Ulster Unionist Party No party affiliation is given for Members serving the House in a formal capacity, the Lords spiritual, Members on leave of absence or Members who are otherwise disqualified from sitting in the House. © Parliamentary Copyright House of Lords 2016, this publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 2371 Companies: Remuneration[23 MARCH 2016] Companies: Remuneration 2372 the Royal Commission on the Distribution of Income House of Lords and Wealth I remember the numbers going back to the start of the 20th century—came down from 100:1, to Wednesday 23 March 2016 90:1, to 80:1, to 70:1, winding up at 15:1 or something like that? Would he not agree with the Labour Party’s 11 am manifesto that there should at least be workers’ representatives on boards’ remuneration committees? The House observed a one-minute silence for the victims of the Brussels attacks. The Earl of Courtown: At least the noble Lord, Prayers—read by the Lord Bishop of Chelmsford. Lord Lea of Crondall, has asked me a question that I can answer. The answer is, of course, no. My right honourable friend the Chancellor of Exchequer has Companies: Remuneration been working throughout his period as Chancellor to Question reduce inequality. 11.08 am Noble Lords: Oh! Asked by Lord Brooke of Alverthorpe The Earl of Courtown: My Lords, there is always To ask Her Majesty’s Government whether they more that can be done and we hope that, with the have plans to legislate to introduce secret ballots for policies we have introduced, inequality will reduce. all employees to ratify decisions made at a company’s annual general meeting on the remuneration of that Lord Robathan (Con): My Lords, does my noble company’s directors and its five most highly paid friend think that many people in the country agreed employees. with that proposal in the Labour Party manifesto last May? The Earl of Courtown (Con): My Lords, the Government have no such plans. The remuneration of company directors is primarily a matter for the company The Earl of Courtown: We all remember what happened and its shareholders. Comprehensive reforms to the at the general election in May. I, by the way, was in reporting and governance of directors’ pay in 2013 Kuala Lumpur at the time. I will not bore noble Lords have boosted transparency for shareholders and given with what I was doing there, but I do, of course, agree them a binding vote on companies’ remuneration policies. with my noble friend. All company directors must have regard to the interests of employees in discharging their legal duty to promote Lord Stevenson of Balmacara (Lab): Let us get back the success of the company. to the Question. This raises important issues about transparency and equity. In 1980, to back up what my Lord Brooke of Alverthorpe (Lab): My Lords, my noble friend was saying, the median pay of directors question starts, “Does the noble Baroness know?”. of FTSE companies was £63,000 and the ratio to the However, does the noble Earl know that the UK now average wage was 11:1. In 2013 that ratio had risen to has very high income inequality compared with most 130:1 and median board pay is now £513,000. You other developed countries? Further, does he know have tried transparency, it does not work. What plans that, even with the coming living wage increases planned have the Government really got to regulate those who over the next few years, it is possible that the wage gap abuse their position by taking excessive pay and whose will still be the same by 2020 as it is now and as it was warped judgments prioritise short-term gains instead in 2010? Is it not time, after a decade of stagnation, of long-term growth? that we had some thoughts about how we can try to bring about a narrowing of that gap? Will the Minister The Earl of Courtown: My Lords, regulation of pay please go back—or at least give an indication that he throughout the banking sector, the high pay and the will go back—and come forward with some ideas differences between all these subjects—I am sorry, I about how we will narrow it? have lost track. Basically, it is important that there is equality in pay, and regulation of various sectors is so The Earl of Courtown: I thank the noble Lord for important in this area. I will write to the noble Lord. I his question. He raised a number of points, including apologise for that answer. the national living wage, which is about to come into force. We must also remember that the national minimum Lord Tyler (LD): My Lords, in the interest of the wage has had one of the biggest increases in its history. transparency and effective democracy to which the We
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