ANNEX
MINISTERIAL AND OTHER SALARIES BILL
Memorandum from the Cabinet Office
(Office of Public Service)
The Ministerial and Other Salaries Bill implements Recommendation
14 of the Senior Salaries Review Body Report of 1996 by providing
a formula for Ministerial salaries to be increased automatically
each year in accordance with a formula. It is the same formula
as that set out in the Resolution of the House of Commons of 10
July 1996 which increases MPs' pay and would give Ministers as
from 1 April 1998 the same annual percentage increase as MPs.
Power to make delegated legislation
The Bill also makes provision for individual salaries provided
for by the Ministerial and other Salaries Act 1975 ("the
1975 Act") to be changed by Order as at present, and for
the initial formula to be amended or replaced by Order by another
formula, or by a different link.
Order-making power
Clause 1(2) inserts two new sections after Section 1 of the 1975
Act. The order-making power is contained in the new Section
1B, which provides powers to make an Order for changing
the annual amount of a salary, or for providing that the amount
of a salary may be determined or changed by reference to another
amount or a replacement formula.
Subsection (1) provides power to make an Order to make
provision for changing the annual amount - or the maximum or minimum
annual amount - of any salary set out in the Act. This extends
the power presently available under subsection 1(4) of the 1975
Act (which is repealed by Clause 1(1) of the Bill) which only
allows an Order to change the amounts currently stated on the
face of the Act.
Subsection (2) sets out what an Order may do. Paragraph
(a) has the effect of re-enacting section 1(4), by providing
that an Order may specify a new amount. Under paragraph (b),
an Order may provide for an amount to be determined or to change
from time to time by reference to another amount or another specified
formula. Under this power, the formula provided by the new section
1A could be replaced by a new formula; or a salary could be fixed
by reference to another amount, for example the amount of another
specified salary.
Subsection (3) provides flexibility to cover the various
formulae or arrangements which might be necessary. Paragraph
(a) provides that the Order may make different provision for
different circumstances. Although paragraph (b) is a "Henry
VIII" power, necessary to allow for possible amendment or
replacement of the formula in section 1A, it can only be used
to change the Act for the purposes set out in subsection 1B(1).
Subsection (4) provides for Parliamentary scrutiny. Paragraph
(a) provides for a draft Order to be approved by resolution
of each House of Parliament, unless it relates solely to the salary
of the Speaker of the House of Commons, in which case paragraph
(b) requires a resolution of the House of Commons only.
Why Delegated Powers?
The power to make delegated legislation has been included in the
Bill in order that Ministerial and other salaries may be continue
to be changed without the need for primary legislation.
Procedure Selected
An Order is to be laid as an affirmative draft and cannot be made
unless approved by Parliament (or the House of Commons in the
case of a draft Order relating only to the salary of the Speaker
of that House). This ensures that any change to the formula set
out in new Section 1A or to any individual ministerial or other
salary will continue to need positive Parliamentary approval.
29 July 1997
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