HC Deb 04 April 1967 vol 744 c12
15. Mr. Palmer

asked the Minister of Power since the capital investment of the electricity supply industry was about 12 times as large as that of the iron and steel industry in 1965, on what basis the deputy chairman of the Iron and Steel Board is to be paid approximately twice the salary of the chairman of the Electricity Council.

Mr. Marsh

I would refer my hon. Friend to the statement which I made to the House on 15th March.[Vol. 743, col. 420–428.]

Mr. Palmer

Is that Answer sufficient? Does not he think that the comparison which I have made indicates how much confusion has been caused in the salary structure of the nationalised industries generally by paying these ridiculously inflated salaries to members of the new Iron and Steel Board?

Mr. Marsh

I am surprised that my hon. Friend should regard them as "ridiculously inflated". This is the first time that I have heard that view expressed. The size of capital investment is a factor, but it is by no means necessarily the most important in determining appropriate salaries for people in different industries. It is relevant to take into account what the market position is if one wants good management in the nationalised industries.

Sir G. Nabarro

But is the Minister aware that, whereas the Chairman of the Electricity Council is paid £12,500 a year the Chairman of B.O.A.C. is paid £15,000 a year, although in terms of turnover the Electricity Council is hundreds of times larger than B.O.A.C? Cannot some equilibrium be restored?

Mr. Marsh

As I said in reply to an earlier Question, one cannot say when this review will take place. However, I think that it is a great pity that hon. Members opposite did not recognise these anomalies, for which they are directly and completely responsible, a little earlier.