MINUTES OF THIRD MEETING OF THE ALLOWANCES REVIEW PANEL ON 19 OCTOBER 2007 AT 10.00AM IN ROOM Q3.02, THE SCOTTISH PARLIAMENT
Present:
Sir Alan Langlands (Chair)
Alastair MacNish
Isobel Sharp
Tom McCabe MSP
Lord Selkirk of Douglas
In attendance:
Ian Leitch
Annette McCann
Lynda Towers
Annalee Murphy
Lori Gray (minutes)
1. Minutes
1.1. The Panel agreed the minutes of the second meeting held on 21 September 2007.
2. Accommodation
2.1. The Panel discussed a paper setting out possible options. It was agreed that an index-linked claw-back option in respect of interest payments on the capital required to purchase a property should be explored but that the Panel has not ruled out recommending the abolition of the purchase option. A further paper would be prepared for the next meeting.
2.2. To enable an informed decision to be taken, the Panel called for more information on the following:
Whether the reduction on Capital Gains Tax from 40% to 18% applies to domestic property?
What would the tax implications be on inheritors or successors if a standard security was taken out against the property?
Whether there are Corporation Tax issues for the parliament?
The total hotel accommodation costs in the last financial year for Members who fall within Group 2 constituencies as set out in the existing Members’ Allowances Scheme.
What are the average leasing and hotel accommodation costs in Edinburgh?
2.3. The Panel took an in principle decision on a number of associated issues relating to accommodation and agreed these would be formalised at the next meeting of the panel.
3. Staffing
3.1. The Panel discussed a paper setting out suggestions on separate staffing support within an Allowances Scheme. The Panel agreed that the first principles of the scheme would be that it should be fair to staff, that the Members should be the employers and that costs should be controlled.
3.2. As to the format of staff support the panel agreed that there was a fine balance between determining pay bandings and setting a capped amount for Members to provide staff support. There were also issues in relation to the workload of Members which should be further investigated and the Panel invited the secretariat to prepare additional information to enable the Panel to reach a decision.
3.3.. In response to some of the points raised in the paper, the Panel agreed:
The existing arrangement of Members employing their own staff should continue
Members should have discretion to employ whoever they wish but further consideration should be given to making such an arrangement transparent
Employer National Insurance contributions and pension costs should remain with the Member as the employer
There should be financial provision for temporary staff cover, staff training and childcare vouchers
3.4. The Panel briefly discussed the pooling of staff and separate provision for redundancy payments and agreed that these points should be discussed at a later meeting.
4. Party Leaders Allowance
4.1. The Panel discussed the paper briefly and agreed that it would be beneficial to hear a presentation on the allowance before proceeding to make any recommendations. Thereafter, the Panel agreed it would be helpful to invite further views from Party Leaders on the allowance.
5. Papers for Information
5.1. The Panel noted two information papers – “Westminster Sitting Times” and “Evidence Summary Sheet”.
6. Any Other Business
6.1. The Chair advised the Panel that he intended to meet with Sir John Baker, chair of the Senior Salaries Review Body. A meeting planned for earlier in the month was cancelled due to logistical problems.
7. Date of Next Meetings
7.1. It was agreed that the Panel would next meet on Monday 10 December at 10.00am.
7.2. A further meeting will also be held on:
Friday 25 January 2008 at 10.00am
Secretariat
October 2007