DFT must give consent over bonus say Labour

Published on Monday, 06 February 2012 11:11
Posted by Scott Buckler

Labour has discovered that the Department for Transport has to give 'prior written consent' to Network Rail before there can be any changes to its incentive policy

This follows the release by Labour last week of documents proving that the Transport Secretary has a place on Network Rail's Remuneration Committee as the company's 'Special Member' identified in the Articles of Association filed at Companies House.

This new revelation adds to the pressure on the Secretary of State to actually block the proposed bonus package, not just simply turn up and vote at Friday's Network Rail General Meeting. The proposed scheme would see Senior Managers receive up to 60 per cent of their salary as a bonus every year, and a further 500 per cent at the end of each five year funding period.

Maria Eagle MP, Labour's Shadow Transport Secretary, said:

“Justine Greening is wrong to say that she cannot block these bonuses. Not only does the Secretary of State have a place on Network Rail's remuneration committee but we now know that she must also give prior written agreement to any change to the incentive scheme for senior managers. The government must come clean on whether that written permission has been given as it is difficult to see why Network Rail would have felt able to propose this new bonus package without knowing it had Ministerial backing.

"Justine Greening must now decide if she is going to act to stop the taxpayer funded Network Rail’s bonus plan, or just cast a vote on Friday while allowing them to go ahead.

"It is misleading of the DfT to suggest it is just one vote out of more than a hundred when it is in fact one of five people on Network Rail’s Remuneration Committee and the only one providing £4bn of funding to the industry. Being critical is no longer enough.

"Times have changed and failing to use the powers that Ministers have will show just how out of touch they are with public opinion when we are supposed to all be in this together.”

 

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