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Viscount Cranborne: The Government announced in Command 2748 presented to Parliament on 26 January that they intended to introduce new arrangements for the pay of Permanent Secretaries from 1 April, and that they would make a further announcement in conjunction with their response to the report of the Senior Salaries Review Body. The Government have now considered the recommendations of the Review Body.
As foreshadowed in the Command Paper, a remuneration committee will be established to advise Ministers on where individual Permanent Secretaries should be placed within the pay range. The full terms of reference are below. The final decisions on the pay of individual Permanent Secretaries will be for the Government, who expect normally to accept the recommendations of the committee.
There will be five members of the committee, three members of the Review Body, the Head of the Civil Service and the Head of the Treasury. The chairman of the Review Body will normally chair the committee. The three external members will, sitting alone, make recommendations to the Government on the salaries of the Heads of the Civil Service, the Treasury and the Diplomatic Service.
Sir Michael Perry, who will succeed Lord Nickson as chairman of the Review Body in April, has agreed to chair the committee. Mr. Gordon Hourston and Ms Yve Newbold, both members of the Review Body, have agreed to serve on it. I am grateful to all of them for undertaking this important and additional task.
The Review Body proposed a pay range of £90,000£150,000. The Government accepts this recommendation. The salaries of individual posts will be published in £5,000 bands once each year in the following annual report of the Review Body.
2. The Chairman of the committee will be one of the members, normally the Chairman, of the SSRB. Remit: Permanent Secretaries other than the Heads of the Home Civil Service, the Diplomatic Service and the Treasury.
3. The purpose of the committee is for the three SSRB members to make proposals to Ministers on the pay of individual Permanent Secretaries save in so far as their pay is determined by the terms of an individual appointment.
4. The pay of Permanent Secretaries will be accommodated within the pay range 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.
7. The SSRB members of the committee will, sitting alone, make proposals to Ministers on the pay of the Heads of the Home Civil Service, of the Diplomatic Service and of the Treasury. For this purpose they will take account of all the factors noted in paragraphs 46 above as relevant to the pay of Permanent Secretaries.
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