Dear Mr Bonus
9 January 2010
Dear Mr Bonus, where are you?
David Cameroon on the Andrew Marr show today failed to say that he would use his position to outlaw inflated bank bonuses, including the rumoured bonus of £2.5 Million for Steven Hester, head of The Royal Bank of Scotland, and therefore a public service employee since RBS is currently owned by the taxpayer.
On the TV show David Cameroon did imply, and in fact skilfully convince Mrs Monk that he had in fact dealt with the issue of excessive bank bonuses. At the same time, he somehow said the opposite with smoke and mirrors. I had to watch the programme twice because of Mrs. Monk’s perception of what he had said, which turned out to be wrong.
Fraser Nelson of the Spectator was also on Andrew Marr’s TV couch, and he also defended Mr Hester’s pay and bonus package of £7 Million, justifying the bonus, because of the tax Mr Hester would be required to pay on that package.
No one doubts that all public service employees would be delighted to receive any kind of bonus, and Mr Hester’s bonus, could employ for one year, 113 extra public service workers at the national average wage.
So where are you Mr Bonus?
Don’t worry about Mr Hester; as pointed out those replacement jobs will yield a benefit to the public purse, because all new employees will have to pay tax on that salary. Furthermore, Mr Cameroon wont have to pay out 113 unemployment cheques, and they can both go to heaven, and not the other place.
I’m not at all convinced that Mr Nelson is right about that tax thing. If I were an accountant, I might advise Mr Hester, to send Mrs Nelson for a long holiday in Switzerland and have her domiciled there. Or make a donation to a cash strapped political party, choose a winning party and find himself, in due course, in the House of Lords, and if that were abolished, his real accountant would need to advise on current loopholes, though he may not necessarily go to heaven.