Hansard

At the outset, I make it clear that I speak on behalf of the Scottish Parliamentary Corporate Body, not on behalf of the Conservative group or any other political entity.

All members know that, in this debate, we will discuss the Parliament salaries scheme and the party leaders' allowances scheme. The two proposals that are before Parliament would give effect to new salaries for members and ministers based on the recent report of the Senior Salaries Review Board and would provide for the leaders of the two main non-Executive parties to receive an additional allowance.

I should make it clear that the SPCB's role today is to facilitate the debate. The SPCB has not taken a view on the salary levels; we consider that to be a matter for Parliament. Whatever is decided today, the SPCB will ensure that the arrangements for it are implemented.

I will explain briefly the background to the salaries proposal that is before the Parliament. Before the establishment of the Scottish Parliament, the Scottish Office commissioned the Senior Salaries Review Board to undertake an initial review of salaries for members and ministers. The SSRB's recommendations formed the basis of the Scotland Act 1998 (Transitory and Transitional Provisions) (Salaries and Allowances) Order 1999, which was passed at Westminster.

One of the report's recommendations was that a further review should be undertaken within three years. The SSRB considered that, with the experience of the Parliament's having been in existence, it would be in a better position to assess salary levels more accurately. On 8 June last year, the Presiding Officer and the then First Minister jointly commissioned the SSRB to undertake such a review, and the board's recommendations were published on 18 December 2001.

The SSRB's initial review pegged MSP salaries to 86.5 per cent of MP salaries. However, with MPs receiving additional pay in April 1999 and again in June 2001, MSP salaries fell to 82 per cent of MP salaries. In its report, the SSRB considered that, without some increase in salaries, MSPs would fall further behind members at Westminster. The board also considered that, with the rapid development of the Parliament, there had been an increase in the job weight of MSPs. It concluded that MSP salaries should be set at 87.5 per cent of MP salaries.

I offer those comments as a factual summary of the outcome of the review and the report. It should also be remembered that members do not work an eight-hour day; their working day can be considerably longer than that. Few members present would disagree with that observation.

The salary proposal makes provision for members to receive from 1 April an annual salary of £48,228, which is 87.5 per cent of what an MP will receive.

Today members are in the uncomfortable position of having to vote on their own salaries. We all accept that that cannot continue and that this should be the last time that it happens. However, under the Scotland Act 1998, Parliament cannot remove its discretion entirely; at the moment, the decision cannot be delegated to someone else. For that reason, the motion would confer on the SPCB the function of deciding salary levels for members and ministers. It is proposed that any future annual increases for members will be based on changes in Westminster salaries, to keep the linkage of 87.5 per cent. The same percentage increase will be made to ministerial salaries, in order to retain the linkage. It is likely that that mechanism will work for a considerable number of years and that no changes will be needed.

At the same time, it is recognised that Scottish circumstances could change in the future. In such circumstances, it might not be appropriate to retain the automatic linkage to Westminster salaries. For that reason, the proposal clearly places a responsibility on the SPCB first to review and then to implement any future pay changes, not only for members, but for ministers. That is important. When undertaking a review, the corporate body will be required to take appropriate advice on salary levels from outside bodies or individuals before implementing salary changes. That is a key point. The corporate body will also have to have regard to such advice.

On the party leaders' allowance scheme, members will be aware that an additional recommendation of the SSRB was that the leader of the main non-Executive party should receive a salary of just over £32,000 in addition to their member's salary. I should make it clear that during the review neither the leader of the SNP nor anyone else argued for such a salary increase. What was argued was that party leaders should be provided with an allowance to support them in carrying out the extra duties that they have as parliamentary party leaders. That includes their role as party spokespersons.

The proposal on a party leaders' allowance scheme therefore provides that those qualifying party leaders of parties that are represented by 30 or more members in the Parliament shall receive an annual allowance of up to £21,000. The proposal extends the provision to the leaders of non-Executive parties that are represented in the Parliament by between 15 and 29 members—such a leader will receive an annual allowance of up to £11,000. I should make it clear that no work of a party-political nature can be undertaken in connection with party conferences and election campaigns using that money. The payment of such allowances will be transparent and all expenditure must be receipted and will be published along with information on the general allowances scheme.

I am not sure whether you wish me to move the motion at this point, Presiding Officer.