LOL!! This is brilliant

Russe11

Is it not Canada that has done so well as inflating away its debts that they no longer had 1 or 2 cent coins, everything is to be priced to the nearest 5 cents?

chewmylegoff

the_flying_pig wrote: »

£250k a year for housing. That is kind of insulting.

It'd be better presentationally [imo] just to add £250k to his salary [making a total of £874k or whatever] & justify it simply by saying that the candidate wants this much [to spend, or save, according to his tastes] & could get it elsewhere, so they think it's worth paying it. Not a crazy stance to take.

Adding a housing allowance seems to imply 'need' somehow, to me anyway.

Prime London is massively overpriced... residential yields are around 3% [e.g. see this link http://www.spearswms.com/property/36022/prime-london-residential-market-remains-resilient-in-the-face-of-recession.thtml] so we're talking about an £8m house. That is a very, very serious house. I doubt that all that many of the newly crowned Goldman Sachs London-based partners ever aspire to live in a place like that [although they'll be able to afford to buy one for cash soon enough if they stick it out], and this guy is a public servant.

So it all seems a bit odd?

Well the £250k will be taxed at 47% so will only actually pay for a £4.5 million house. Poor chap, he'll have to slum it in a Chelsea townhouse like the rest of us.

That said, this is pretty standard stuff for very senior people. A commercial bank would have paid him much more.

chewmylegoff

Graham_Devon wrote: »

Look at company cars. Were all taxed on them as it's of benefit to us. Even if the company owns them, you can't just have them for your personal use. MPs and the elite can though.

Housing allowances are taxed in pretty much exactly the same way as a company car.

The bloke is in demand and this is what he has negotiated for himself. He's still only going to be paid the same as an average premiership footballer, for instance....

And as to the point you made in your other post about the lack of evidence of private sector demand for people like this - the outgoing CEO of the FSA is reported to be going to earn up to £3 million a year at Barclays. Was on about £500k at FSA.

grizzly1911

Generali wrote: »

He's running the Bank of England. !!!!!! does the lot of the common man mean?

The jealousy that Britons have towards those earning more than them is getting out of hand.

Perhaps because the gap between is growing alot faster than down under?

vivatifosi

I don't have a problem with this, but I am surprised that there isn't already a residence that goes with the job. Similar to No 10 Downing Street, The Mansion House, Lambeth Palace, Winfield House, 11 Downing Street, etc..

Moby

Graham_Devon wrote: »

Mark Carney, the incoming governor of the Bank of England is getting paid twice what Meryvn King was paid. £624,000 a year with pension taken into account. £480,000 a year without.

However, it's now been unveiled that the poor bloke can't afford UK housing.

Therefore, he will get an additional £250,000 per year of our money to pay for his housing costs.

The allowance is designed to allow him to maintain a similar lifestyle to that which he had in Canada.

Pure brilliance. How stupid can the government / BOE really be. It's like they thrive on the public backlash!

http://www.bbc.co.uk/news/business-20782364

Totally right. We live in a class ridden rip off country in which polyester shirted, barrow boy, financial adviser types have more say than people who do proper jobs such as police, nurses, teachers etc. This guy is at the top of the tree demonstrating the point. How wrong our values are. Selfishness rules!

Graham_Devon

Peston now has a blog on the subject.

The comments, put in order of rating, seem to flow with my feelings on the subject. But I've also learned something new. He will have new powers, such as setting interest rates himself, and directly influencing the supply of credit. Sounds to me as if he won't actually need the back of his members any more?

All sounds like we should at least be aware of what's happening here, considering he's obviously very keen on loose monetry stimulus and keen to get rid of the link to inflation.

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?

http://www.bbc.co.uk/news/business-20788572

Wookster

Graham, you have to ask yourself, if Mark Carney was in the commercial world he would be on a multi million pound salary.

If you're in government, and you think he's the best man for the job, then you need to offer him a sweet enough package to incentivise him to take the job.

Like it or not, most folks do their job for the money rather than some grandiose sense of helping the world out.

Graham_Devon

Wookster wrote: »

Graham, you have to ask yourself, if Mark Carney was in the commercial world he would be on a multi million pound salary.

I have asked myself that.

But he's not, and isn't. Presumably he would be if there was so much demand?

GeorgeHowell

moneyinmypocket wrote: »

There is a lot of bitterness in this thread

There's a lot of bitterness in almost every thread.