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Wednesday 1 December 2010

Mind the gap

Much coverage today on the BBC of Lord Hutton's suggestion that the highest earner in public bodies should earn no more than 20 times the pay of the lowest in the same organisation. 20 times? Just shows that Hutton is no more than a champagne socialist these days.  I remember wehn the French socialists had a similar policy for all companies, but with a multiple of 7.  The French communists went further, and had 5.  Try telling that to some of our union leaders.

Strangely, or perhaps not, the BBC were very quiet about their own organisation, for much as they profess its independence it is a public corporation owned by the government.  It is after all funded by a tax. The BBC may be responsible for the collection of the license fee, a task it subcontracts,. mostly to Capita, but the receipts are paid into the Consolidated Fund.  DCMS takes a cut of the money for itself (not a lot of people know that) and then pay the remainder over to the BBC together with the money for licenses the over-75's which is funded out of general taxation.

Although, in the spirit of pay equality, perhaps the BBC does pay its cleaners £41,700 a year.

5 comments:

Demetrius said...

Did Hutton demean himself by actually doing some arithmetic? Moreover, given present pension arrangements did he do any calculations for these as well? In the mid 20th Century in many public sector you would be looking at ten to twelve times at most.

Alex said...

Probably. 200 * the Minimum Wage is around £230k which would cover most people in Whitehall but probably not a lot of quangocrats or university Vice Chancellors.

Anonymous said...

Not Lord (John) Hutton, the banged-out MP, but Will "the Hypocrite" Hutton. Will Hutton who has raped the Industrial Society, and turned it into the Work Foundation, enriching himself in the process. Will Hutton who berates all privilege, who wants all to be 'equal', yet who lives in a spectacular Cotswold house bequeathed him by his aunt.

Alex said...

You are right. Shouldn't believe all you hear on the BBC.

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