Ambassadors: Remuneration Committee (Hansard, 26 April 1995)

§ The Minister of State, Foreign and Commonwealth Office (Baroness Chalker of Wallasey)

My right honourable Friend the Prime Minister announced on 9 February that parallel arrangements to those established for the pay of permanent secretaries would be made for the most senior ambassadors—that is those with a rank equivalent to permanent secretary.

A remuneration committee has now been established to advise on the pay of those ambassadors. The full terms of reference are below. Though the final decisions on the pay of individual ambassadors will be for my right honourable Friend, the Minister of State for Foreign and Commonwealth Affairs (Mr. Goodlad) to take, we would expect normally to accept the recommendations of the committee.

As in the case of the remuneration committee dealing with permanent secretaries pay, there will be five members of the committee, three from the private sector, the head of the Diplomatic Service and the chief clerk of the Diplomatic Service. The recommendations made will be those of the three private sector members and the terms of reference provide that the chairman be drawn from their number.

Sir Denys Henderson has agreed to be the first chairman of the committee. Sir Michael Perry and Mr. Allan Gormly have also agreed to serve on it. We are grateful to them. The presence of Sir Michael Perry, who is also chairman of the senior salaries review body and of the Committee on permanent secretaries' pay, will help ensure that awards made to senior ambassadors are in balance with those made to permanent secretaries.

The salaries of individual ambassadors will be published in £5,000 bands in the departmental report each year.

Terms of Reference of the Remuneration Committee

Membership

1. There shall be a committee on the pay of Grade I ambassadors of whom the members will be:

Three members drawn from the private sector, including one member of the senior salaries review body (SSRB)
the head of the Diplomatic Service
the chief clerk of the Diplomatic Service.

2. The chairman of the committee will be one of the private sector members.

Remit

3. The purpose of the committee is for the private sector members to make proposals to the Secretary of State for Foreign and Commonwealth Affairs on the pay of individual Grade 1 ambassadors save in so far as their pay is determined by the terms of an individual appointment.

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4. The pay of Grade 1 ambassadors will be accommodated within the pay range for permanent secretaries to be determined from time to time by the Government. The committee may not propose other forms of remuneration or benefit than pay falling within this range.

5. In making proposals the committee shall take the following factors into account in relation to individuals:

the relative level of responsibility of the post occupied;
the performance of the embassy in meeting its objectives and executing the policy of Ministers and, in particular, the personal contribution the individual has made in terms of policy advice and efficient management, including where appropriate meeting the measured objectives of the embassy;
the particular demands placed on the individual, including those stemming from his or her public role;
the experience of the individual in the present post or in others occupied at Grade 1 level;
in the case of those newly promoted, the level of pay in their previous post;
the individual's own assessment of his/her achievements and the main requirements of the job.

6. The committee shall also take into account these wider factors:

the pay levels of permanent secretaries in the Home Civil Service and of other senior staff in the Diplomatic and Civil Services, and in particular those immediately below Grade 1/Permanent Secretary;
the increases recently given, or likely to be given in the period ahead, to DS staff and civil servants generally, and the pay progression available to them;
the extent of the change for any individual as well as the absolute level of pay, and the presentation of both;
any movement in the pay range as a whole;
the nature and terms of the Civil Service Pension Scheme;
any statements made by the Government on public sector pay;
the maintenance of the confidence of the individual, that recommendations have been properly and fairly determined;
the need to ensure recommendations are consistent with the Government's equal opportunities policies.