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Economics - MPs Pay

MPs will work just 87 DAYS in 2003 under new plans to "modernise" Parliament. After a three-week Christmas break they will return to the Commons on Tuesday to knuckle down to a THREE-DAY week. But they can look forward to a staggering 21 WEEKS holiday in case the job becomes too much for them. Last year MPs agreed to end late-night sittings and give themselves Fridays and Mondays off. They also decided the Commons should close during school half-terms so they can spend more time with their kids. House of Commons Leader Robin Cook said, "We shouldn't be frightened from change by being in any way apologetic about the hours we work. The move will bring the hours of Parliament in line with real life."

Euro MPs are making MILLIONS in a flights and perks rip-off. They're paying as little as £9.99 for trips to Brussels on low-cost airline Ryanair - but pocketing the full Club Class fare of £444 in expenses. And they even get 20 per cent on top for "extras" such meals and taxis. Other EU-approved perks can push their earnings to an amazing £250,000 a year - or £1.25 MILLION over a five-year parliamentary term. MEP Nigel Farage admitted,"It's institutionalised corruption and the EU is rotten to the core."

British MEPs get a basic salary of £55,000 but they can also expect £22,100 a year in attendance fees, £27,000 in office costs, £91,800 for staff, £52,000 in air fares and £2,100 for additional travel. Mr Farage, of the UK Independence Party, said he was so disgusted by the EU's "freebie" culture he gave his air fare savings to charity - and was fined £10,500 by bureaucrats for "misusing" it. And Tory MEP Daniel Hannan said, "I tried to claim the actual cost of my air fare and was told I couldn't because the computers are set in a certain way."

MPs want to make it a very happy New Year for themselves - with a 30% pay rise. They want a massive increase from £56,358 to £72,000 a year. The demand will spark an outcry from low-paid workers told by the Government to tighten their belts for the sake of the economy. Teachers, town hall staff and other public sector workers have been held to rises of between 4-7% this year. Next year could be as low as 2%, yet MPs' basic salaries have already shot up by almost 30% since Tony Blair came to power - from £43,860 in 1997. Now a cross-party group of MPs is pressing for Westminster to be brought in line with Brussels, where British Euro-MPs are due for an increase to £72,000 in 2004.

WESTMINSTER RATES
Basic Pay: £56,358. Staff allowance: £64,304-£74,958.
Office expenses: £18,799.
Daily allowance: None.
Housing allowance: £20,000.
Travel: First-class train or economy class flights to and from constituency.
Tax perks: None.
TOTAL: £170,000

STRASBOURG RATES
Basic Pay: £72,000. Staff allowance: £108,000.
Office expenses: £32,000.
Daily allowance: £185 - about £10,100 a year.
Housing allowance: Generous low-interest loans.
Travel: Business or first-class air fare to and from constituency and meetings around Europe.
Tax perks: Special 28% Community rate.
TOTAL: £222,000

The rise is part of a move to a single rate for MEPs across the EU and breaks the 24-year link which has until now kept Westminster and Brussels on the same basic and it will create a difference of a £170,000-a-year package for a Westminster MP and £222,000 for Euro-MPs, who sit in Strasbourg, France. That does not include hidden perks for Euro-MPs such as generous housing allowances, tax-free shopping, free taxis and a £185-a-day payment just for turning up. One protesting MP, a former Minister, said, "It is not a question of money, it is the principle. To have MEPs paid more than us is ridiculous and insulting."

The average MP costs taxpayers £175,000 a year. MPs were paid a total of £115million in salaries and allowances in 2003. Salary costs stayed steady with MPs earning £56,358 a year. But "allowance" payments rose 13%. Backbenchers were given more generous allowances for staff and office equipment after the 2001 election.

Most MPs employ three staff to deal with paperwork and constituency business compared with one or two before 2001. Many also took advantage of the change to upgrade computers. Commons authorities paid £75.4million in allowances for 2002-03, almost £9million up on the previous year's £66.7million. The figure excludes additional payments to Ministers for their work.

MPs claimed almost £120,000 a year on top of their salaries and used this to help pay off homes worth hundreds of thousands of pounds. The total for all MPs in 2003 was £78million. The taxpayers’ bill for some MPs tops £200,000 a year once their pension contributions of £13,526 are added in. Mileage allowances at 57.7p a mile are double the rate for most businessmen and receipts are rarely required. When questioned, one Labour MP said, "It has nothing to do with you."


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