HC Deb 22 May 1933 vol 278 cc758-63
47. Mr. PARKINSON

asked the Minister of Transport the salaries and conditions of the engagement of the chairman and members of the London Passenger Transport Board under the London Passenger Transport Act?

48. Sir KENYONVAUGHAN-MORGAN

asked the Minister of Transport if he will make a statement to the House on the terms as to salaries and conditions of service applicable to the chairman and other members of the London Passenger Transport Board recently appointed?

The MINISTER of TRANSPORT (Mr. Oliver Stanley)

I must apologise to the House as the answer is rather long.

After consulting the appointing trustees, and with the consent of the Treasury, I have fixed the salaries of the chairman and members of the London Passenger Transport Board as follows:

£
a year.
Lord Ashfield, chairman 12,500
Mr. Frank Pick, whole-time member 10,000
The remaining members, all of whom are appointed on a parttime basis 750

All the members of the board have agreed to a temporary deduction from these salaries at the rate of 7½per cent.

I will circulate the full conditions of appointment in the OFFICIAL REPORT. Their main features are as follow:

In lieu of his rights under existing agreements with the operating companies, Lord Ashfield has agreed to accept from the board, on his ceasing to be chairman, an annual sum of approximately £l,950 a year (or, at his option, a lump sum in commutation thereof).

Lord Ashfield will be at liberty to retain the chairmanship of the operating companies whose undertakings are being transferred to the board and of the two holding companies for the purposes of winding up these companies as speedily as possible.

It has been agreed that he may retain certain directorships which he now holds, namely:

and that so long as he remains chairman of the board, he will not accept any new directorship without the prior concurrence of the Minister.

Mr. Frank Pick's salary will be open to review at the expiration of three year3. He will not accept any paid directorship or appointment or engage in any work which would conflict with the duties of his position as a member of the board.

Mr. John Cliff will resign his office as the Assistant General Secretary of the Transport and General Workers Union, and will cease all participation in the business and activities of the union during his term of office as a member of the Board.

No special conditions apply to the other members of the Board, but the Chairman and members are subject to the general conditions and restrictions contained in Sections 1 and 4 of the London Passenger Transport Act, 1933.

I would add that the arrangements made on this occasion in respect of a Chairman and a whole-time member of the Board are not regarded by the Appointing Trustees, the Treasury and myself as constituting precedents to be followed in future when the special circumstances attending the formation of the Board will no longer exist.

Mr. PARKINSON

Shall we be able to discuss the question of these salaries when Supply comes before the House?

Mr. LANSBURY

We would like an answer to that question. Will the House at any time be able to discuss or question the advisability of either the salaries or the conditions attaching to them?

Mr. STANLEY

It is not for me to answer questions as to Order. It will be for the Chairman of Committees when the time comes, but the right hon. Gentleman will remember that under the London Passenger Transport Act of 1933 the responsibility to fix these salaries is that of the Minister, and no doubt when we come to discuss the Minister's salary the right hon. Gentleman will be able to ask for a Ruling from the Chair whether it will be in order to discuss the salaries.

Captain ARTHUR EVANS

Is it not a fact that the salaries mentioned are far less than those received by these gentlemen under the Underground Group, and is it not generally recognised by autho- ritiea that the amount they received from that organisation was not excessive, and that they earned every penny of it?

Mr. STANLEY

I am sure that both the stockholders of the new board and the travelling public of London in general will be very satisfied that they have obtained the services of these two gentlemen at such salaries.

Following are the conditions of the appointments:

Lord Ashfield—

  1. (i) That, in substitution of any claims which the might have against the Board in respect of his agreements with the Common Fund Companies or otherwise, he would accept from the Board, on his ceasing to be Chairman, an annual sum (or, at his option, a lump sum to be actuarially ascertained in commutation thereof) equivalent to the pension to which he would be entitled under those agreements upon the assumption that he ceased to be the managing director of those companies on the date when he ceased to be Chairman of the Board, and on the assumption that an agreement will be entered into between the Board and Lord Ashfield in accordance with the above condition. Furthermore, that no claim by any of the operating companies against the Board will be founded on any arrangements made between him and those companies or any of them in respect of the severance of his connections with them or the termination of any agreements between him and any of them.
  2. (ii) That he shall be at liberty to retain the Chairmanship of the operating companies whose undertakings are being transferred to the Board and of the Underground Electric Railways Company of London, Limited, and the London and Suburban Traction Company, Limited, for the purposes of winding up those companies as speedily as possible, but that he will cease to draw any salary or fees from any of the operating companies after the 30th June, 1933.
  3. (iii) That his appointment as Chairman of the Board shall not preclude the retention by him of directorships of the following companies which he now holds:
  4. (iv) That so long as he remains Chairman of the Board he will not undertake any functions incompatible with the due discharge of his duties as Chairman and will not accept any new directorship or paid appointments without the prior concurrence of the Minister of Transport for the time being.
  5. (v) That, save as provided under paragraphs (ii), (iii), or (iv), he will, not later than the 30th June, 1933, resign all appointments held by him whether as director or otherwise with any company or firm.

Mr. Frank Pick—

  1. (i) That his salary will be open to review, after consultation with the Appointing Trustees and the Treasury, at the expiration of three years from the 1st July, 1933, and is in full satisfaction of any claims which he may have against the London Passenger Transport Board under the terms of the London Passenger Transport Act, 1933. He will retain his existing superannuation rights in accordance with Section 80 of the Act.
  2. (ii) That he will resign all other paid appointments, such resignation to take effect not later than the 30th June, 1933, and that he will not accept any other paid directorship or appointment or engage in any work which would conflict with the duties of his position as a member of the Board.

Mr. John Cliff—

That he will resign his office as the Assistant General Secretary of the Transport and General Workers' Union, and will cease all participation in the business and activities of the union during his term of office as a member of the Board.

There are no special conditions applicable to the other members of the Board.

In addition, the Chairman and members are subject to the general conditions and restrictions contained in Sections 1 and 4 of the London Passenger Transport Act, 1933.

NOTE.—All the members of the Board have agreed to a temporary deduction from their salaries at the rate of 7½ per cent. (or at such other rate as may in future be substituted as being in accord with any deduction from the salaries of officers of the Board then in operation).