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Hain wants £1m City bonuses shared with the poor
Last updated at 21:52pm on 11.02.07
City firms should donate two-thirds of their bonus pots to charity or inner-city regeneration, according to one of the candidates for Labour's deputy leadership.
Cabinet minister Peter Hain said that massive bonuses - which this Christmas totalled £8.8 billion - were fuelling envy and social discontent.
And he warned that City firms could face government legislation or tax hikes to reduce inequality if they do not act themselves to curb excessive payouts.
Mr Hain told the Sunday Telegraph that people on average incomes did not feel that the seven-figure bonuses enjoyed by a few thousand City high-fliers were "proportionate".
And he warned that there would be a "big fight" if the firms did not show more "moral and social responsibility".
"There's a real problem of people on average incomes feeling there's a sort of super-rich class right at the top," said the Northern Ireland Secretary.
"What is it? Four thousand city workers receiving more than £1 million each in bonuses. People don't feel that's proportionate. We've lost a sense of moral corporate responsibility here.
"That sort of thing creates a society where you start getting envy being promoted and a sense of real antagonism and that breeds all sorts of socially undesirable behaviour."
Mr Hain rejected the suggestion that huge bonuses were essential to attract the best talent to the City.
He said: "I don't believe that people will only work in the City because they get those sort of bonuses. They don't need to offer them.
"Why don't they give two-thirds of that £8.8 billion and invest it in charity or invest it in regeneration schemes for unemployed kids who are living a mile away from the opulence that there is in the City?"
He added: "I think in the interest of the City, particularly if they don't want to invite attacks for greater regulation or changes in taxation, if they don't want to get into that kind of arena then they have to show a lead.
"Let's work this out on the basis of consensus, let's not have a big fight over it, because it will come to a big fight otherwise."
Reader views (2)
Here's a sample of the latest views published.
Slowly but surely the old Labour emerges from under the new!
It's very interesting how their social justice agenda has slowly transformed from "equality of opportunity" to "equality of result" - i.e. just like in the 1970's people like Mr Hain feel they have a right to put a cap on people's income. Where will this stop? Today it will be the easy targets, like City traders, tomorrow it will be others. Remember Neil Kinnock and his desire to see incomes capped at £60,000? This is the way Labour are going and will continue to go.
Mr Hain continues to peddle the lie that others are poor because some are rich. In fact it is obvious that the opposite is true. We're all better off because of the money these people make and pay in tax. We would all be better off if we had ten times as many people getting £1M bonuses. Mr Hain is just disguising simple envy with talk of social justice.
I can also assure Mr Hain that these City workers very much work for these bonuses. If they are taken away, they will leave and then we all have a nice big share of nothing.
And to be lectured by any member of this government on issues of morals really is the most incredible arrogance.
- Charles, Bath, Banes
And how much does Peter Hain get paid compared with "average incomes"?
- David S, Stevenage UK
