How will you spend your pay bonus this year?

Chances are, in fact, that you won’t have had a bonus, you probably haven’t had a pay increase and you are thinking about how to keep your job in the light of declining economic performance and rising unemployment.

This is in contrast to the pay experience of a band of people at the top of organisations which shape and define modern life. Take the new Chief Executive of Apple, Tim Cook, who took over from Steve Jobs just before the latter died last year. Mr Cook received a pay package in 2011 of $378 million, or some £244,000,000. As my nana used to say, I wish I was a penny behind him.

In many respects, the example of Apple, certainly under the leadership of Steve Jobs, the previous chief executive, is not the best one to use. Steve Jobs came back to Apple in the late 1990s and turned around a poorly performing company that was looking old-fashioned and obsolete, into an organisation offering innovative, even beautiful products like the iPod and the iPhone which people eagerly wanted. As a result, Apple’s profits increased massively, as did its share price. Apple was worth about $17 a share in 2000 – last time I looked, you could buy the same Apple share this week for over $425.

I don’t think anybody would mind success being rewarded appropriately. We all have an interest in companies doing well: they provide employment and offer goods and services which make our lives easier or better. Better company performance will result in higher dividends and share prices, and as many of our pensions will be invested in these companies, our retirement provision should improve if companies do well. If executives produce sustainable growth that benefit their shareholders and the communities in which they operate, there is a case that their pay should reflect that.

I think what angers most people, quite rightly, is when executives are paid an obscene amount of money but there is no increase in success. There is no link between paying a huge amount of money and a successful performance by the organisation. In many respects, executives are failing and are being rewarded handsomely for it. The situation with the banks is an obvious example, but it is not confined to the financial sector. Take Cable & Wireless, an important and historic British company that spans the world. It is important for the UK economy that this British company does well. The top two executives were paid £9 million and £10 million, but in that time the company stopped paying a dividend because it couldn’t generate enough cash, it imposed thousands of job losses, it took £650 million out of its accounts, and its share price fell from 90 pence two years ago to about 17 pence today. Last year, one of the executives quit and took about £650,000 in severance pay.

The other concern is the big difference between executive pay and the wages of ordinary workers. In 1980, the boss of Lloyds was paid £79,000, which was thirteen times higher than average pay. In 2010, his successor was paid £2 ½ million, which was 75 times the average pay packet. Such a growing gulf between the experiences of ordinary people, especially when they are experiencing cuts in standards of living, and the elite is simply unsustainable and morally questionable.

Greater curbs on executive pay, with more transparency, more effective reporting and greater representation of workers on committees that set these top levels of pay, are something which needs to be addressed quickly.

The town lost a great man at the end of last year when Ken Johnson, the former Hartlepool United player, died. This week was Ken’s funeral at the beautiful church in Seaton Carew and, as I expected, the church was packed as many, many people wanted to pay their respects.

I’ve been proud to know Ken Johnson, and his wife Olwen, or Olly, all of my life. My nana, Joyce Harland, worked for many years in the launderette at the Fens Shops. The launderette was next to Ken and Olly Johnson’s fish shop, and as far back as I could remember and as soon as I could climb out of a pushchair, I recall running back and forth from the launderette to the fish shop, no doubt causing chaos and hassle to Ken, Olly and my nana as I did so. Ken stood at the back of the fish shop, frying the fish, and always had a kind word to say to me and to everybody else. In time, it dawned on me that this man was the same Kenny Johnson who was a Hartlepool United legend and who had played and scored against the likes of Manchester United. The demeanour of this kind and generous gentleman always seemed somewhat at odds with the egos and prima donnas that were even at that time starting to infect the beautiful game and were beginning to be seen on Match of the Day. I think many of today’s Premiership footballers could learn a lesson or two from Ken’s passion for the game combined with manners, modesty and decency.

Every time I saw Ken, I always said something like: “How do you think Pools are doing, Ken?”, or words to that effect. Of course, it wasn’t just me who said that – people who met Ken everyday said something about Pools, expecting a comment or some analysis about our prospects for promotion (or, in Pools’ case in years gone by, re-election to the Football League), or what Ken thought about our latest centre forward or who we should sign. It must have been draining, somewhat similar to a comedian constantly being asked by strangers to tell a joke. In every case, however, Ken commented not just with great grace, insight and humour, but took an interest in the person asking the question.

I speak as I find, and I will always remember Ken Johnson, in my conversations with him spanning over thirty years, with affection and respect. I particularly admire the fact that he treated everybody the same, regardless of age or status. He was as polite, courteous and interested in me when I was a ten year old kid, blocking the entrance of his shop with my bike and no doubt stopping customers getting fish and chips, as when I became Member of Parliament, bringing a Secretary of State to Pools to watch a game. There were no airs and graces or false sides to Ken and I really admired that.

Since Ken’s death, I’ve looked again at my copy of the official history of Hartlepool United, published a few years ago to celebrate the club’s centenary. There is a lovely picture (on page 166 – please go and have a look if you have the book) of the team on the front page of the New Year edition of the Soccer Star of 1960. Ken Johnson is the first person you see when you look at the picture – he dominates the shot in the same way he dominated a ball. This big lad sitting third from the left on the front row stares back at you with his back straight and pride oozes out of his body, some half a century after the photo was taken.

That pride and sense of service never left Ken Johnson. It is difficult to think of another individual who has served Hartlepool United so well for such a length of time. I’m sure Ritchie Humphries, who has just achieved a remarkable 500 appearances for Pools, won’t mind me saying that Ken’s 106 goals in 413 appearances, and then his commitment to the club for decades after his retirement, will never be bettered. Ken scored on his debut, 62 years almost to the day when 17 year-old Luke James scored a fantastic goal against Rochdale, which would have made Ken proud.

At the funeral, the Rev’d Captain Paul Allinson said that he would look to place a permanent memorial to Ken in the church. I think that is a touching gesture. But given the unparalleled level of service to Pools, I hope something will be done in Victoria Park. I think the club should formally re-name the Town End as the Kenny Johnson Stand. My love to Olly and the family.

I hope you have been able to have a peaceful and restful Christmas and wish you all the very best for the New Year. Looking back over the last twelve months across the world, it is amazing to think of the significant, even historic, events that took place in 2011. The world saw the Arab Spring, leading to the toppling of regimes in the likes of Egypt, Tunisia and Libya. We saw the killing of both Colonel Gadaffi and Osama Bin Laden. We saw the collapse, more or less, of the Eurozone and the virtual bankruptcy of countries like Greece and Italy. Just before Christmas we saw the unexpected death of North Korea’s leader Kim Jong-Il, and given the nature of the regime and the fact it has nuclear weapons, we should really take notice as to how his successor deals with the transition of power. Closer to home, we saw vicious and violent riots on the streets of Britain. In the last moments of 2011, we even saw the unexpected return of Neale Cooper to Pools. Strange and unexpected things have indeed happened! 2011 certainly will be studied by historians, and the repercussions of the events of last year will be with us for many years to come.

Although 2012 has a difficult act to follow, I think it will prove to be a significant year. There will be a presidential election in the United States this year, and that event always has an impact on the world. The eyes of the world will be on Britain as a result of London hosting the Olympics, as well as the Queen’s Diamond Jubilee.

The main focus of 2012 is and should be the economic performance of our country. I don’t want to be the harbinger of doom, but I think 2012 will be even more difficult for the economy, particularly for towns like Hartlepool, than it was in 2011. The economy is weak and is getting weaker. All the evidence suggests that we are already in recession and I fear that unemployment, which is already far too high, will rise still further in 2012. People will cut back what they spend in shops, either because they simply do not have the money as a result of falling wages and standards of living and rising prices, or because they are concerned about the future. This will mean that more shops will close and more jobs in the retail industry will be lost.

In these difficult times, the Government should be doing all it can to promote economic growth and increases in employment. I think most people would recognise the need to reduce public debt, but to rush headlong into this in the fastest possible way is the wrong choice. In fact such a policy is counterproductive, not only because, as we start from a much lower base, it weakens still further the long term potential of the country’s economy, but also results in social problems, like long term unemployment, which are very expensive to deal with over many years. You only have to look at the experiences of Hartlepool in the 1980s, when a deep recession, caused in part by reductions in public investment and expenditure, helped to result in a much reduced economic base for the town and subsequent unemployment or low paid work for many people.


It seems far more sensible for the Government to concentrate on having as many people as possible in work in a growing economy. That approach would mean that the Government will take in more tax and therefore would be able to pay down the debt, as well as paying out less in unemployment benefits.

However, I am a positive sort of person. I think Hartlepool has remarkable determination and resilience, and some parts of our economy really do point to a prosperous future. There is the possibility of being a centre of excellence for energy, incorporating not only oil and gas but also nuclear and renewable. We have leading manufacturing firms that can, with appropriate support, help to pull Hartlepool and the wider country out of recession. I’m so confident and positive about the future, I even think I’ll soon see a home win for Hartlepool United. I wish you a happy, healthy and prosperous 2012.