Never mind a pay rise, let’s stop paying our MPs to fail

We wouldn’t mind what MPs’ salary was if they were making the UK a demonstrably better place. Alex Andreou makes the case for performance-related pay in Westminster.

How much should MPs get paid? The truth is, in the grand scheme of things, it really doesn’t matter. An entire country debating the remuneration of 650 public servants; £65k per annum? Higher? Lower? Do I get a Brucie bonus? It is a tiny droplet of mist in the vast ocean of the UK’s finances.

You might say that, in times of austerity, in times when most people are feeling the squeeze, in times when other public servants are being clobbered with pay freezes, it is perverse for MPs to get such a pay rise. You might say its importance is highly symbolic. If I want symbolism, I will read some Verlaine. I am interested in the reality of how the UK is governed.

And the reality is that, on the whole, the UK is governed pretty badly. The direct results of this failure are austerity, the squeeze, the pay freezes. So, X a year already represents a gross waste, in many MPs’ cases. And X + 10% will be a marginally grosser one. To argue about the precise level of X, seems to me a futile exercise based on subjective criteria – the central of which appears to be “how much do I make?” It is also a dangerous diversion from the real reform needed.

MPs are in a position to make a difference in people’s lives, if they do their job properly. So, I would like to advance the contentious notion that how much we pay our MPs is not the issue. The way in which they are remunerated for failure is.

Let us imagine that MPs’ reward consisted of two elements – a low basic salary and a performance related bonus. We already have an established culture of setting all sorts of targets; for reducing child poverty, tackling unemployment, growth in the economy, crime rates, inflation, average earnings, mortality rates, educational success. All of these indicators are set and then promptly ignored. What if they were linked to the reward of those in charge? It is not such an alien concept.

If we managed to eradicate the ridiculous situation of our elected representatives moonlighting for outside interests, treating public office as if it were merely an inconvenient way to get the portcullis on your business card, and that cost us a tiny bit more money, would we seriously mind? If we managed to guarantee a full, spirited and informed debate on education or welfare, rather than a small minority of conscientious people making speeches to an empty chamber, and that cost us a tiny bit more money, would we seriously mind?

Would we mind so much if the 650 people in question got a very generous bonus for making the country in which we live a demonstrably better place? Would anyone care that they made two hundred grand a year if crime rates plummeted, everyone’s standards of living rose and homelessness became obsolete? We must commonly agree the things that would prove they are doing a good job and link them to their reward.

This is where it gets tricky, however. Because the truth is, we are not sure what we want from them; what makes a good MP. We wish them to be independently minded, as long as they don’t rebel against the party we support. We want them to be supremely experienced “in the real world”, while having no past. We ask that they pass liberal legislation which does not interfere with our daily lives, while acting in a draconian way against whatever group we happen to despise that week. We demand that they be brutally honest and above reproach, while keeping the ugly side of governing to themselves. We want them to live like paupers, but be completely untouchable by bribes.

No other group faces such competing demands coupled with such close scrutiny. So, let us get rid of the notion that it is an easy job. Like any other job, it is a very easy one to do badly. Unlike most other jobs, doing it badly can have severe consequences for millions. The healthy thing to do, for our democracy, is to focus on what it takes to do it well and how we put the right people in place. If that happens to cost a little more, so be it. Let us address voter apathy, low turnouts, candidate selection, party whipping, outside interests and the influence of lobbying. If we do that, the issue of fair remuneration will become much less contentious. If we don’t, then whatever level the salary happens to be set at will still be a legitimate target for criticism.

It is easy for a pay rise to become the focus of anger and much of the media has done an excellent job of blowing the dog-whistle, without any deeper critical enquiry. It is easy to mount a campaign designed to pick on an already despised group of people – many of them fairly despised. It is rare to find a political issue on which we all agree superficially. So, you can tut and roll your eyes at a particular figure, but ask yourselves this: if this campaign is successful and the IPSA-proposed rise does not become reality, will anything have changed? Will the economy grow any faster? Will a disabled person receive fairer treatment? Will fewer women become victims of rape? Will the parents of a child living in poverty be able to feed it Nick Clegg’s symbolic moral stand?

The 200+ new MPs elected at the 2010 election together in Westminster Hall. Photograph: Getty Images

Greek-born, Alex Andreou has a background in law and economics. He runs the Sturdy Beggars Theatre Company and blogs here You can find him on twitter @sturdyalex

Getty
Show Hide image

Leader: The unresolved Eurozone crisis

The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving.

The eurozone crisis was never resolved. It was merely conveniently forgotten. The vote for Brexit, the terrible war in Syria and Donald Trump’s election as US president all distracted from the single currency’s woes. Yet its contradictions endure, a permanent threat to continental European stability and the future cohesion of the European Union.

The resignation of the Italian prime minister Matteo Renzi, following defeat in a constitutional referendum on 4 December, was the moment at which some believed that Europe would be overwhelmed. Among the champions of the No campaign were the anti-euro Five Star Movement (which has led in some recent opinion polls) and the separatist Lega Nord. Opponents of the EU, such as Nigel Farage, hailed the result as a rejection of the single currency.

An Italian exit, if not unthinkable, is far from inevitable, however. The No campaign comprised not only Eurosceptics but pro-Europeans such as the former prime minister Mario Monti and members of Mr Renzi’s liberal-centrist Democratic Party. Few voters treated the referendum as a judgement on the monetary union.

To achieve withdrawal from the euro, the populist Five Star Movement would need first to form a government (no easy task under Italy’s complex multiparty system), then amend the constitution to allow a public vote on Italy’s membership of the currency. Opinion polls continue to show a majority opposed to the return of the lira.

But Europe faces far more immediate dangers. Italy’s fragile banking system has been imperilled by the referendum result and the accompanying fall in investor confidence. In the absence of state aid, the Banca Monte dei Paschi di Siena, the world’s oldest bank, could soon face ruin. Italy’s national debt stands at 132 per cent of GDP, severely limiting its firepower, and its financial sector has amassed $360bn of bad loans. The risk is of a new financial crisis that spreads across the eurozone.

EU leaders’ record to date does not encourage optimism. Seven years after the Greek crisis began, the German government is continuing to advocate the failed path of austerity. On 4 December, Germany’s finance minister, Wolfgang Schäuble, declared that Greece must choose between unpopular “structural reforms” (a euphemism for austerity) or withdrawal from the euro. He insisted that debt relief “would not help” the immiserated country.

Yet the argument that austerity is unsustainable is now heard far beyond the Syriza government. The International Monetary Fund is among those that have demanded “unconditional” debt relief. Under the current bailout terms, Greece’s interest payments on its debt (roughly €330bn) will continually rise, consuming 60 per cent of its budget by 2060. The IMF has rightly proposed an extended repayment period and a fixed interest rate of 1.5 per cent. Faced with German intransigence, it is refusing to provide further funding.

Ever since the European Central Bank president, Mario Draghi, declared in 2012 that he was prepared to do “whatever it takes” to preserve the single currency, EU member states have relied on monetary policy to contain the crisis. This complacent approach could unravel. From the euro’s inception, economists have warned of the dangers of a monetary union that is unmatched by fiscal and political union. The UK, partly for these reasons, wisely rejected membership, but other states have been condemned to stagnation. As Felix Martin writes on page 15, “Italy today is worse off than it was not just in 2007, but in 1997. National output per head has stagnated for 20 years – an astonishing . . . statistic.”

Germany’s refusal to support demand (having benefited from a fixed exchange rate) undermined the principles of European solidarity and shared prosperity. German unemployment has fallen to 4.1 per cent, the lowest level since 1981, but joblessness is at 23.4 per cent in Greece, 19 per cent in Spain and 11.6 per cent in Italy. The youngest have suffered most. Youth unemployment is 46.5 per cent in Greece, 42.6 per cent in Spain and 36.4 per cent in Italy. No social model should tolerate such waste.

“If the euro fails, then Europe fails,” the German chancellor, Angela Merkel, has often asserted. Yet it does not follow that Europe will succeed if the euro survives. The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving. In these circumstances, the surprise has been not voters’ intemperance, but their patience.

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump