HC Deb 19 March 1963 vol 674 cc204-5
Q4 Mr. Berkeley

asked the Prime Minister (1) what was the salary of a Cabinet Minister in 1938; and to what figure his present salary would have to be amended to take account of the increase in the index of retail prices since that date;

(2) what was the salary of a Parliamentary Secretary in 1938; and to what figure his present salary would have to be amended to take account of the increase in the index of retail prices since that date.

The Prime Minister

In 1938, senior Ministers were paid £5,000 and Parliamentary Secretaries £1,500. The retail price index only started in 1947, but taking into account the rise in consumer prices since 1938, the corresponding figures now would be £15,300 and £4,590 respectively. Of course, if questions of taxation were to be taken into account, very much larger figures would be involved.

Mr. Berkeley

Would not my right hon. Friend agree that these figures reveal that his colleagues are grotesquely underpaid in the light of the consistently successful way in which they carry out their duties?

The Prime Minister

The question of additional payment is, of course, mentioned from time to time and has been dealt with, and may be dealt with again. Meanwhile, we must be content with the approbation of our fellow countrymen.

Mr. Shinwell

Apart from Ministers receiving reasonable salaries, did not the Prime Minister say the other day that he hoped they would be judged by results? That being so, would it not be desirable in the case of some of his colleagues, in view of the lavish promises they have made which remain unfulfilled, to pay them by results?

The Prime Minister

I think that had that applied during the last Labour Administration there would have been very little pay.

Mr. Ronald Bell

Will my right hon. Friend bear in mind that in relation to Cabinet Ministers' salaries, the right year of comparison is not 1938 but 1831, when their present remuneration was fixed by way of reduction as a temporary economy measure? Does not my right hon. Friend think that the particular circumstances of 1831 which caused that reduction have now passed away?

The Prime Minister

These are relevant matters, of course, but I must point out that if my hon. Friend is thinking that we should try to aim at the same net receipts, the gross sums would rise considerably, because this is the result —[An HON. MEMBER: "Of inflation."]—of the taxation system. It has nothing to do with inflation. The Question is connected with retail prices, but if net receipts were the consideration there would be very large, almost astronomical, figures, and that is an important fact in the modern conditions of life.