Appendix 2:
Letter to the Clerk of the Committee from Mr Derek Conway, 14
January 2008
I would be grateful if you could submit this letter
to Members of the Committee for consideration with Sir Philip's
report.
Section (a) Could I draw
the Committee's attention particularly to the Commissioner's conclusion
that Freddie "was employed to meet a genuine need, as perceived
by his father in helping him undertake his parliamentary duties"
(para 66). I would in that regard point out that I had no other
research assistant and that the Commissioner recognises that Members
of Parliament work in different ways and have different needs.
With regard to paragraph 65 (page 26 lines 3-4) I would like to
make it clear that Freddie was not paid a salary to commute
between London and Newcastle, nor was any travel claim made for
him.
Section (b) Likewise I
would like to draw attention to what the Commissioner concludes
in (para 67) namely that Freddie "was able, in terms of his
qualifications and skills, to do what was required of him".
Section (c) The Commissioner
accepts that Freddie did do the work but has concerns as to how
much he did during term-time. In paragraph 71 he notes that the
work involved covered researching extracts, scanning newspapers
and making cuttings. In paragraph 65 he comments that some of
this work could have been done by the House Library staff. However,
the Library staff have considerable pressures on their time and
cannot in any event assist with marking up Parliamentary Bills
which, as I explained in my statement to the Commissioner, was
an important part of the work Freddie had to do in regard to my
duties as a member of the Speakers Panel. He does, however, accept
in (paragraph 66) that there is a great deal of discretion about
staffing support. The issue is not, I would respectfully suggest,
how it might have been done but how it was done. As indicated,
the Commissioner accepts that Freddie had the appropriate intellectual
skills to do the work. To that I simply add that he fully applied
himself. My son had a deep interest in these matters which motivated
him to conscientiously spend the time he and I described to the
Commissioner.
His was a geography course with limited time demands
in terms of lectures. Many students have part-time jobs, so Sir
Philip's doubts about Freddie's capacity to do the work (page
28, line 7) is, I believe, wide of the mark. Freddie frequently
travelled between Newcastle and London (never at public expense)
and the journey is only 3 hours by train and 4.5 by car. As a
young man he was doing a journey which many Hon. Members twice
and three times his age travel on a weekly basisor further.
Section (d) With regard
to bonuses, in his first year no bonus was paid and in the subsequent
years no salary up-rating applied. My error was in using form
SA3 for one-off payments to reflect the combination of up-rating
and bonus. I hope the Committee accepts that my error in which
form to use was inadvertent and I accept that a proportion of
those sums related to a bonus which exceeded the 15% maximum should
be repaid.
What proportion of that £4620.90 should be repaid
is a matter for the Committee's judgment. I hope the Committee
will bear in mind that over the three year period the maximum
of the DFA grade would have allowed for a total payment of £48137.79
combined salary and bonus and Freddie was paid £45163.29
salary and bonus which is £2974.50 below the maximum set
by the House.
Unfortunately I had not read the Green Book provisions
and I accept I was in error for which I apologise unreservedly.
In paragraph 75 Sir Philip expresses his reservations
about salary level but does not refer to any breach of the rules.
The figures upon which he bases his report were only made by DFA
in December 2007 and were not available to Hon. Members.
The Director of Operations has explained to me that
he expressed a number of qualifications in providing the figures
and that, with regard to paragraph 76, they are based on an average
of payments made to all lower grade staff across the UK and Northern
Ireland. He offered Sir Philip an "arithmetic mean"
but that was a higher figure and would have reduced the discrepancy
between hypothetical assertion and actual salary paid to Freddie.
The issue of an appropriate level of payment is a
somewhat different allegation from the original complaint. It
is not an easy matter to deal with as Members do not have access
to the analysis documents on which the Commissioner relies, nor
can one get information as to comparable rates of payment as the
information is necessarily confidential. That guidance is provided
by the DFA annually in a table of employment grades showing a
maximum permissible and minimum recommended. It is upon these
published grades that I make this submission to the Committee.
Attached is a chart giving the maximum salary that
could be paid, the middle of the scale and the actual salary paid,
all the figures are pro-rata from the DFA 37.5 hour week to Freddie's
contractual 17 hours.
This shows:
Column 1the three
year total as £41858.95 for the permitted DFA maximum.
Column 2the figures
£35097.35 being the actual payment made for the three years
to Freddie.
Column 3the figure
of £32770.89 being the mid-point figure between recommended
maximum and minimum salary figures.
Column 4shows year
by year that Freddie was paid £6761.60 and 16.95% less than
the permitted DFA maximum (in column 1).
Column 5Freddie
was paid over three years £2326.46 and 6.63% more than the
mid-point of the scale (in column 3).
The House does not stipulate the point within the
grade to which Hon. Members appoint. If the Committee were to
conclude, as Sir Philip has argued, that a middle point would
have been more appropriate (though DFA had the forms giving his
age and salary level and raised no objection to the point set
within the scale) then this would have resulted in a salary overpayment
of £2326.46 over three years.
In summary, were the Committee inclined to uphold
Sir Philip's view on salary, then I would be judged against a
scale not available to me and would call in to question the "appropriateness"
of every remuneration point selected by Hon. Members for their
staff.
I hope the Committee will conclude that actual salary
payments to Freddie were well within the published grade, and
therefore appropriately approved by the DFA and that no infringement
of the rule applied.
F
E Conway Salary Scale Analysis
| | 1 |
2 | 3
| 4 | 5
|
| YEAR | DFA
Max Scale
| FEC
Actual
| DFA
Mid-point
| FEC Compared to Max
| FEC Compared to Mid-point
|
| 2004 | 7762.29
| 6867.56 | 6077.90 | - 894.73
| 789.66 |
| 2005 | 13905.55
| 11772.96 | 10888.16 | - 2132.59
| 884.80 |
| 2006 | 14434.13
| 11772.96 | 11297.05 | - 2661.17
| 475.91 |
| 2007 | 5756.98
| 4683.87 | 4507.78 | - 1073.11
| 176.09 |
| TOTALS: | 41858.95
| 35097.35 | 32770.89
| - 6761.60 | +2326.46
|
| | 83.05% | |
93.37% | -16.95% | +6.63%
|
N.B. Figures based on DFA published scales, adjusted for the 37.5
hour week to FEC's 17 hour week.
DFA Guidance 2004
NB: Freddie started in September 04 making this a
7 month financial year so all scales are divided by 12 and multiplied
by 7 for comparative analysis.
The standard DFA week of 37.5 hours equates to 1137.5
hours and Freddie's part-time 17 hour week to 515.67 hours.
| DFA Pay Range Maximum
| £17122.68 | |
|
| Freddie hours equivalent |
| | £7762.29 |
| DFA Pay Range MID-POINT |
| | |
| | |
7762.29
4393.51-
3368.78
2÷
1684.39
4393.51+
| | | |
| | |
| | | £6077.90
|
Freddie ACTUAL |
| |
£6867.56 |
| Comparison:- | |
| |
| | Max Grade
7762.29
6867.56
-00894.73
| | Mid-Point
6077.90
6867.56
+00789.66
| | |
DFA Guidance 2005
NB: The standard DFA contract of 37.5 hours per week
equates to 1950 hours per annum and Freddie's part-time 17 hours
per week equates to 884 hours so for comparative analysis scales
have been dived by 1950 and multiplied by 884.
| DFA Pay Range Maximum
| £30674 | |
|
| Freddie hours equivalent |
| | £13905.55 |
| DFA Pay Range MID-POINT |
| | |
| | |
13905.55
7870.77-
6034.78
2÷
3017.39
7870.77+
| | | |
| | |
| | | £10888.16
|
Freddie ACTUAL |
| |
£11772.96 |
| Comparison:- | |
| |
| | Max Grade
13905.55
11772.96
-02132.59
| | Mid-Point
10888.16
11772.96
+00884.80
| | |
DFA Guidance 2006
NB: The standard DFA contract of 37.5 hours per week
equates to 1950 hours per annum and Freddie's part-time 17 hours
per week equates to 884 hours so for comparative analysis scales
have been dived by 1950 and multiplied by 884.
| DFA Pay Range Maximum
| £31840 | |
|
| Freddie hours equivalent |
| | £14434.13 |
| DFA Pay Range MID-POINT |
| | |
| | |
14434.13
8169.97-
6264.16
2÷
3132.08
8169.97+
| | | |
| | |
| | | £11297.05
|
Freddie ACTUAL |
| |
£11772.96 |
| Comparison:- | |
| |
| | Max Grade
14434.13
11772.96
-02661.17
| | Mid-Point
11297.05
11772.96
+00475.91
| | |
DFA Guidance 2007
NB: Freddie ended 3rd week of August 07
making this a 20 week year, so all scales are divided by 52 and
multiplied by 20 for comparative analysis.
The standard DFA contract of 37.5 hours per week
equates to 750 hours and Freddie's part-time 17 hours per week
equates to 340 hours.
| DFA Pay Range Maximum
| £12699.23 | |
|
| Freddie hours equivalent |
| | £5756.98 |
| DFA Pay Range MID-POINT |
| | |
| | |
5756.98
3258.59-
2498.39
2÷
1249.19
3258.59+
| | | |
| | |
| | | £4507.78
|
Freddie ACTUAL |
| |
£4683.87 |
| Comparison:- | |
| |
| | Max Grade
5756.98
4683.87
-1073.11
| | Mid-Point
4507.78
4683.87
+ 176.09
| | |
|