New Bank chief Mark Carney says he's worth £874,000 salary

Feb 7, 2013

Canadian picked to run Bank of England provides 'breath of fresh air' as he discusses his role

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MARK CARNEY, the next Governor of the Bank of England, provided a "welcome breath of fresh air" as he defended his £874,000 pay packet and gave "candid" answers about his anticipated role at the central bank.

Answering questions from MPs at the Treasury Select Committee today, the 47-year-old Canadian banker said his salary was justified because the fact he was not taking a pension meant it was in line with that paid to the current governor, Sir Mervyn King.

Asked about the inclusion of a £250,000 housing allowance, Carney pointed out he was moving from "one of the least expensive capital cities in the world - Ottawa - to one of the most expensive capital cities in the world."

During his appearance, Carney revealed he expects to "undertake a thorough review" of the UK’s economic policy regime when he takes up his post in July. He said he wanted to "engage widely" using speeches and social media, and rejected suggestions that his new position would essentially make him the head of a "court of the Sun King".

Oversight structures meant that he will be accountable through a number of mechanisms, including the hearings of the Treasury committee itself, he insisted.

Writing in the Daily Telegraph, Jeremy Warner said Carney had made a good impression during the more than three-hour grilling by MPs. The Canadian had "confirmed his reputation as a smoother, less chippy performer than Sir Mervyn," Warner said, "and it seems certain he's going to be more consensual in his approach to policy than the incumbent."

But the air of goodwill was punctured by the controversial American economic commentator Max Keiser, who told the BBC the Canadian should "resign immediately" and let markets set interest rates.

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