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  • Lord Mendelsohn – 2016 Parliamentary Question to the Department for Business, Innovation and Skills

    Lord Mendelsohn – 2016 Parliamentary Question to the Department for Business, Innovation and Skills

    The below Parliamentary question was asked by Lord Mendelsohn on 2016-04-25.

    To ask Her Majesty’s Government what assessment they have made of the FTSE share index of public companies trading at broadly the same levels as 1998 whilst executive pay over the same period has trebled.

    Baroness Neville-Rolfe

    Executive pay has risen significantly since 1998 and the link between top pay and company performance has sometimes been weak. That is why the executive pay reforms brought in by the Government in 2013 included measures to clarify the links between pay and performance as well as giving shareholders a stronger say. Company remuneration policies (on which shareholders now have a binding vote at least every three years), for example, must include information on how directors’ pay is linked to different levels of performance. In addition, the Annual Remuneration Report, which sets out what directors have been paid in the past financial year, has to set out clearly how the actual payments made relate to performance.

    It is too soon to form firm conclusions about the impact of the 2013 reforms. Executive pay is typically set on a three year cycle and the reforms have not yet reached their third anniversary. However, there is growing evidence from the current AGM season that shareholders are prepared to use the new powers, particularly where pay is out of line with company performance.

    The Government does not track executive pay across the more than 1,000 companies subject to the Regulations. We do however work closely with independent researchers that regularly survey the level and structure of pay, such as Manifest, and with key stakeholders such as the Investment Association and the Financial Reporting Council to ensure that we have access to the evidence needed to keep executive pay under review.

  • Lord Mendelsohn – 2016 Parliamentary Question to the Department for Business, Innovation and Skills

    Lord Mendelsohn – 2016 Parliamentary Question to the Department for Business, Innovation and Skills

    The below Parliamentary question was asked by Lord Mendelsohn on 2016-04-25.

    To ask Her Majesty’s Government whether they track executive pay; and whether they collect data on what percentage of Long Term Incentive Plans were changed for FTSE 100 companies when performance changed negatively.

    Baroness Neville-Rolfe

    Executive pay has risen significantly since 1998 and the link between top pay and company performance has sometimes been weak. That is why the executive pay reforms brought in by the Government in 2013 included measures to clarify the links between pay and performance as well as giving shareholders a stronger say. Company remuneration policies (on which shareholders now have a binding vote at least every three years), for example, must include information on how directors’ pay is linked to different levels of performance. In addition, the Annual Remuneration Report, which sets out what directors have been paid in the past financial year, has to set out clearly how the actual payments made relate to performance.

    It is too soon to form firm conclusions about the impact of the 2013 reforms. Executive pay is typically set on a three year cycle and the reforms have not yet reached their third anniversary. However, there is growing evidence from the current AGM season that shareholders are prepared to use the new powers, particularly where pay is out of line with company performance.

    The Government does not track executive pay across the more than 1,000 companies subject to the Regulations. We do however work closely with independent researchers that regularly survey the level and structure of pay, such as Manifest, and with key stakeholders such as the Investment Association and the Financial Reporting Council to ensure that we have access to the evidence needed to keep executive pay under review.

  • Lord Mendelsohn – 2016 Parliamentary Question to the Department for Business, Innovation and Skills

    Lord Mendelsohn – 2016 Parliamentary Question to the Department for Business, Innovation and Skills

    The below Parliamentary question was asked by Lord Mendelsohn on 2016-04-25.

    To ask Her Majesty’s Government whether they will be participating in the Investment Association’s roundtables on executive pay; and whether Minister or officials intend to communicate with the Investment Association in preparation of those roundtables.

    Baroness Neville-Rolfe

    The Government welcomes the interim conclusions of the Executive Remuneration Working Group. They represent a valuable source of ideas for ensuring more effective engagement between investors and directors and ensuring that executive pay policies are tailored to the needs of individual businesses. We also welcome the Working Group’s plans to consult interested stakeholders on practical ways of improving the current approach to executive pay. Departmental officials will be engaging with the roundtables that are being planned.

    The Government made significant reforms to the governance of executive pay in 2013. Under these reforms, companies are required to put their pay policies to shareholders at least every three years. These policies have to include information on how each director will be paid and how that is linked to different levels of performance. This is subject to a binding vote. Companies also have to provide shareholders with an Annual Remuneration Report which reports the pay of each director in a single figure and again has to set out clearly how the actual payments relate to performance. Shareholders have an advisory vote on this report, but if they reject the report, the company must submit a revised pay policy to a binding vote at the next AGM.

    These reforms give shareholders effective powers to challenge excessive pay and hold boards to account on executive pay policies. There is strong evidence from the current AGM season that shareholders are willing to use these powers, particularly where levels of pay are out of line with performance.

    The Government has no current plans for further legislation or regulation, but is looking for firm evidence that companies are liaising effectively with shareholders and adjusting pay policies where there is shareholder dissatisfaction.

  • Baroness Randerson – 2016 Parliamentary Question to the Department for Transport

    Baroness Randerson – 2016 Parliamentary Question to the Department for Transport

    The below Parliamentary question was asked by Baroness Randerson on 2016-04-25.

    To ask Her Majesty’s Government whether they will outline the decision-making process following their expected announcement on airport expansion in the South East, and at what stage in that process there will be a vote in Parliament.

    Lord Ahmad of Wimbledon

    On 14 December 2015, the Government formally announced that it accepted the Airports Commission’s case for new runway capacity in the South East, as well as the Commission’s three shortlisted schemes. At the same time, it was also announced that the Department for Transport would undertake a package of further work which it anticipates will conclude over the summer. Alongside this, they would prepare an airports national policy statement as the framework for implementing decisions on airport capacity in line with the Planning Act 2008. National policy statements are designated in Parliament, at which point there can be a vote.

  • Baroness Randerson – 2016 Parliamentary Question to the Department for Transport

    Baroness Randerson – 2016 Parliamentary Question to the Department for Transport

    The below Parliamentary question was asked by Baroness Randerson on 2016-04-25.

    To ask Her Majesty’s Government whether they intend to consult on a replacement regime once the current night-flight regime comes to an end in October 2017, and when that consultation is expected to take place.

    Lord Ahmad of Wimbledon

    The Government intends to consult on a new night flights regime later this year.

  • Baroness Randerson – 2016 Parliamentary Question to the Department for Transport

    Baroness Randerson – 2016 Parliamentary Question to the Department for Transport

    The below Parliamentary question was asked by Baroness Randerson on 2016-04-25.

    To ask Her Majesty’s Government on what basis they intend to decide how much public funding to put into the new transport infrastructure that would be required if there is to be expansion at Heathrow, and whether the same approach could apply to infrastructure improvements required if there is expansion at Gatwick.

    Lord Ahmad of Wimbledon

    The Government’s 2013 Aviation Policy Framework makes clear that developers should pay the costs of upgrading or enhancing road, rail or other transport networks or services where there is a need to cope with additional passengers travelling to and from expanded or growing airports. Where the scheme has a wider range of beneficiaries, the Government will consider, along with other relevant stakeholders, the need for additional public funding on a case-by case basis.

    The Government’s approach would be the same for each of three short-listed options for airport expansion considered by the Airports Commission.

  • Baroness Randerson – 2016 Parliamentary Question to the Department for Transport

    Baroness Randerson – 2016 Parliamentary Question to the Department for Transport

    The below Parliamentary question was asked by Baroness Randerson on 2016-04-25.

    To ask Her Majesty’s Government whether they will finance feasibility work on plans to redevelop Cardiff Central Station during the current Control Period 5, in order for work to start promptly in Control Period 6.

    Lord Ahmad of Wimbledon

    I am pleased that we have already funded additional platform and station capacity at Cardiff Central station to facilitate forecast passenger growth. The Welsh route study has identified an opportunity to redevelop the station area as a stimulus to economic growth and we will work with the Welsh Government and the new Cardiff City Region Capital Transport Authority to understand the economic benefits of this, as set out in the Cardiff City Deal.

  • Baroness Randerson – 2016 Parliamentary Question to the Department for Business, Innovation and Skills

    Baroness Randerson – 2016 Parliamentary Question to the Department for Business, Innovation and Skills

    The below Parliamentary question was asked by Baroness Randerson on 2016-04-25.

    To ask Her Majesty’s Government whether there is a specific allocation within Local Growth Deal funding for Local Enterprise Partnerships for spending on transport.

    Baroness Neville-Rolfe

    The Department for Transport is contributing over £7 billion of the £12 billion Local Growth Fund. This includes £475m reserved for major transport schemes too large for regular Growth Deal allocations. We expect that transport schemes will continue to feature strongly in Local Enterprise Partnerships’ proposals for further funding, though LEPs have flexibility in what they bring forward and how they use the funding.

  • Baroness Randerson – 2016 Parliamentary Question to the Department for Business, Innovation and Skills

    Baroness Randerson – 2016 Parliamentary Question to the Department for Business, Innovation and Skills

    The below Parliamentary question was asked by Baroness Randerson on 2016-04-25.

    To ask Her Majesty’s Government whether they intend to act on the concerns raised by the National Audit Office in its 23 March report regarding the lack of transparency in spending by Local Enterprise Partnerships in order to ensure taxpayers get value for money.

    Baroness Neville-Rolfe

    The Government welcomes the findings in the report and the helpful scrutiny of our approach. Section 151 officers from the accountable local authorities for each of the 39 Local Enterprise Partnerships have already written to the Department for Communities and Local Government confirming that their assurance frameworks adhere to our national standards, including on transparency. Government will continue to work with Local Enterprise Partnerships to ensure this system remains robust.

  • Henry Smith – 2016 Parliamentary Question to the Department for Transport

    Henry Smith – 2016 Parliamentary Question to the Department for Transport

    The below Parliamentary question was asked by Henry Smith on 2016-04-25.

    To ask the Secretary of State for Transport, what steps his Department is taking to ensure that roadworks cause less disruption to motorists.

    Andrew Jones

    The Government wants to deliver better journeys for drivers. Roadworks are essential, but that doesn’t mean they should be in place any longer than is absolutely necessary. We are currently consulting on changes that will reduce the congestion caused by roadworks on local ‘A’ road from works left in place at the weekend but where no work is happening, and to remove temporary traffic lights as soon as the works are complete.

    We have asked Highways England to look closely at reducing the length of roadworks on the Strategic Road Network. This is being reflected in the next phase of smart motorway schemes, where Highways England are reducing both the length (distance) and duration (time they are in place) of roadworks.

    Highways England are also considering the use of higher speed limits through roadworks, where this can be done safely. Subject to safety assessments, Highway England will be starting a trial of higher speed limits on roadworks later this year.