Protecting the new governor's lifestyle

 
Mark Carney Mark Carney will take up his new post in July.

The Treasury offered Mark Carney a £250,000 annual accommodation allowance, on top of his £624,000 salary and cash in lieu of pension, because it did not see why his lifestyle should suffer from a move to London.

Currently governor of the Bank of Canada, Mr Carney, his English wife and four children live in a large family house a short distance from his office in Ottawa.

Apparently an equivalent home in London would cost around £2600 per week, which is the value of his new allowance after tax and national insurance.

Even so, even in the private sector, it is unusual to receive a housing subsidy on that scale.

And what may stir controversy is that Mr Carney's package protects him from the kind of gyrations in the economy that it will be his role to temper.

What is more, Mr Carney will be the first governor of the Bank of England not only to have the power to set interest rates but also to directly influence the supply of credit through the newly created Financial Policy Committee.

How would it play with people and media if he announces significant restrictions on the availability of mortgages in a housing boom, for example, when he would be wholly insulated from such tough policy announcements?

Little wonder that the non-executives on the court of the Bank of England have taken a couple of weeks to ratify the chunky housing payment which was offered to Mr Carney by the Treasury.

 
Robert Peston, economics editor Article written by Robert Peston Robert Peston Economics editor

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  • Comment number 204.

    This comment was removed because the moderators found it broke the house rules. Explain.

  • rate this
    +2

    Comment number 203.

    To the whingers - blah blah blah. Pathetic - get some perspective. Guy's job is to address a multi-billion pound liability on the taxpayer, and to curb the behaviour of many hundreds of irresponsible bankers being paid many times this guy's salary. If he succeeds he's worth every penny and more. If he fails, his salary is less than peanuts in comparison with the cost of his failure. Grow up.

  • rate this
    +2

    Comment number 202.

    Perhaps they should get in Rooney - he's probably on that much a month. Isn't Beckham available these days?

    Point being - for such an important job, it's peanuts.

  • rate this
    -1

    Comment number 201.

    @153C-P
    My MP is good but collectively-yes-they often annoy me, too!

    If I was Mark Carney, I'd take package but I would ruin GO's summer break (& give Treasury officials extra work) by persuading GO to close a lot of tax loopholes, up the existing top tax rate, create a new one on top while reforming whole fiscal system.

    By which time, it would be summer 2014 ... and I'd be paying more tax!

  • rate this
    +1

    Comment number 200.

    I didn't see why my lifestyle should have suffered as a result of trusting Equitable Life and those who job it was to supervise such institutions,

  • rate this
    +1

    Comment number 199.

    As he is protected from UK inflation with inflation proof gold plated pension I now understand why he wants to drop inflation targeting.

    If he had to live in the real world his policies would be more realistic!

  • rate this
    +2

    Comment number 198.

    I am trying to find out if he has a work permit for this country. yes/no

  • Comment number 197.

    All this user's posts have been removed.Why?

  • rate this
    -5

    Comment number 196.

    Given that he was effectively put by GO in a position to write his own terms, the outcome seems to me to show his demands to have been reasonable and moderate. Compare his package with that of voracious private-sector "operators" like Blankfein and his ilk, paying-out tens or hundreds of millions p.a. plus eye-watering pension and/or termination payments...Without personal risk...

  • rate this
    0

    Comment number 195.

    This only becomes an issue if he is rubbish at his job. For now it is a non story, which is backed up by the fact that Robert has struggled to write more then a few paragraphs on it. It must be the week leading up to xmas!

  • rate this
    -1

    Comment number 194.

    "How would it play with people and media if...he would be wholly insulated from such tough policy announcements?"

    How would it play if he were not? At least this way there can be no credible slurs cast about his being influenced one way or the other by personal considerations.

    Would people find it more acceptable if he were paid a bonus based on how much harm he causes (like the banksters)?

  • rate this
    +3

    Comment number 193.

    And this extremely wealthy man cannot pay his own rent because...? This is a prime example of how the elites live in another world. Could you imagine walking up to your boss and demanding that the company pay for your housing costs.

    "That comes out of your wages!" is what they'd say.

  • rate this
    +2

    Comment number 192.

    This sounds like a man who has no idea how to control his OWN spending if he needs a top-up on his £625,000 per annum salary.
    Is he the right sort of person to be in charge of the BoE?
    As a Canadian will he even pay any tax?

  • rate this
    +1

    Comment number 191.

    190.costmeabob - "........Out of the major conurbations, £250k will buy you a decent 4-bed house with garage and garden and a better lifestyle than London....."


    You should should come down here & check out house prices in rural west Devon...or south Devon.....you'd be lucky to get 3 bedrooms for that with other stuff......

  • rate this
    +1

    Comment number 190.

    Absolutely well worth it if Mr Carney gets the job done!

    Out of the major conurbations, £250k will buy you a decent 4-bed house with garage and garden and a better lifestyle than London

    Worthwhile compensation for living anywhere in London.

    Glad I left all those years ago. Life is so much better here.
    Fresh air. Decent people. Good schools.

  • rate this
    +2

    Comment number 189.

    I wish we were 'all in it together' . This guy gets £250,000 housing allowance. Yesterday it was revealed that head of the lawn Tennis Association gets £640,000. (How much should Dave Brailsford get for relative success?) BBC DG pay off of £400K.There is a world where the people with access to budgets are just feeding each other silly money. Those who work below them have to pay for it.

  • rate this
    0

    Comment number 188.

    Another example of the folly of voting for Thatcher all those years ago where successive governments have made the rich richer and the poor poorer. What does this government do, cap benefits to give the rich more not just the new BOE governor but for example allowing people like Sir Philip Green and companies such as Starbucks, Amazon etc to legally 'avoid' tax while the poor pay their fair share

  • rate this
    0

    Comment number 187.

    Weird world. I paid mortgage out of my salary. Why does this guy get his housing paid for? There is a level in society where the 'getting the right person' and 'need to retain employees' is constantly played. Millions of ordinary workers just have to put up with pay freezes at a time of rising bills. IT STINKS!

  • rate this
    0

    Comment number 186.

    135tcowsley

    So he's getting 15-20k per week and paying tax thereon. Not sure a premiership footballer would get out of bed for that....just to put it into perspective....
    ====
    I don't care what footballers get paid as I don't contribute to their wages nor does what they do affect my living standards. You've just knocked down a straw man, well done.

  • rate this
    0

    Comment number 185.

    @181.davidmelamedoff

    Agreed. Just who do people think rent those houses/flats in London in excess of £5k per WEEK?

    Corporate rentals for expats, that's who.

 

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