My thanks to Iain Dale, for
linking to
my post suggesting that some former ministers would not appear to require state support in these stringent times, and that it should accordingly be withdrawn from them.
However, upon reflection it seems that the strokes of that brush were a little too broad. Nobody wishes to see a return to the days when only those of independent means could afford to enter public life; this is a point of particular importance in this day and age, when those of independent means who do enter public life seem to harbour a boiling, raging hostility to the rest of us.
Accordingly, those who enter the service of the state must be entitled to rely on its support in their old age, in the classical manner of a pension. The only issue that would appear to be determined is just how this pension is to be administered with due regard to fairness, both to those eligible to receive it and to those who are called upon to pay it. After all, we're all in this together.
The fairest method of ensuring justice to both the employer and the employed in this situation is, in my opinion, continuous means testing over the course of the potential recipient's lifetime. Ministerial pensions should be capped at £35,000 pa. If that figure sounds arbitrary, it's no more or less arbitrary than the figure of £10 per week to be deducted from the Housing Benefit of those who've been in receipt of Jobseekers' Allowance for 12 months. If a former minister has income from any other source which takes his total income over this level, then the level of the pension payable to them should be reduced to ensure they have a total annual income of £35,000. If any of them dare say that they can't live on £35,000 a year, they should receive nothing.
Accordingly, if a former minister receives £5,000 a year in extra income, they would receive a pension of £30,000. If they had outside income of £10,000 a year, their pension would be £25,000. If their income from any source exceeded £35,000 a year, no pension would be payable.
'Income' would be defined for these purposes as all income from any source coming into their household. Accordingly, those Tories who might be men of straw in their own right but who made the smart strategic move of marrying rich women wouldn't be able to put on the poor mouth when cadging for a handout.
If a wealthy person enters public life, they should be under the same duty to ensure adequate pension provision for themself as the meanest and greenest Skillseeker. If they are living in a country house and abusing the spirit, if not the letter, of the tax system by holding everything in their wife's name, or in discretionary trusts, or in some other presumably highly tax efficient 'vehicle', then they would be ineligible for any kind of pension. A not unjustified criticism that Michael Nesmith once levelled at the Monkees' TV show was that it depicted four young men living in a beach house 'with no visible means of support'. It is absurd that in the early 21st Century, the British taxpayer may just be the only acknowledged means of support for wealthy men who live in grand style. This is immoral, and has to stop.
By the same token, it might also help to keep many of these characters out of mischief. What use is a career politician on a board of directors? None, as far I can gather, so you have to wonder why they're there. If retired Tory ministers wish to make a packet sitting on the board of brass plate companies that trade in blood diamonds, or make money out of mucky text messaging services, or from selling cigarettes to the children in the Third World while also selling landmines to their parents, they should of course be free to do so. What they shouldn't expect is the British taxpayer to provide them with an income at the same time which, in relation to what such brilliantly able men can earn in the private sector, they would probably consider to be beer money. If they aren't really as capable as they think they are, and are only there to give a patina of respectability to some pretty unsavoury activities and because of their political connections, then the market's Darwinian impulse will very quickly engage in a little natural selection, leaving some of the greedier bastards with more time for gardening and painting watercolours. And a fixed income of £35,000 a year.
The same rules should, of course, apply to those senior civil servants who join boards after leaving office. One of the most popular shows on British TV at the moment is a preposterous piece of period toff porn called 'Downton Abbey'. A senior civil servant turning himself into a taxpayer funded tycoon at the end of their career provokes in me the same kind of horror as a particularly horrifying prospect would have on that show's characters - a butler must always be presentable and of good character, but one wouldn't ever expect him to have pretensions about becoming lord of the manor.
My apologies if I seem to have a bee in my bonnet about this, but I do. A very close acquaintance of mine got stiffed by the British state recently. They had contributed to a public sector pension scheme for just shy of 40 years. Earlier this year, they were informed that the indexation element of their pension had been removed. I may have got the wrong end of the stick when they told me this, but I don't think so. Having spent their entire working life putting part of their earnings into a scheme which promised to provide them with an inflation proof income in retirement, the rules of the game have been changed on them after nearly 10 years of claiming the pension. If the rules of the game can change for someone in their mid '70's, taking away their only safeguard against financial uncertainty, then they can change for Michael Heseltine and Michael Forsyth. After all, we're all in this together - aren't we?
Labels: The Necessary Reform Of Ministerial Pensions