Brown to outline 'international deal' on bank bonuses

British Prime Minister Gordon Brown is expected to outline plans today for securing international agreement on bankers' pay and bonuses.

He will call for executive pay in the financial sector to form part of a "global new deal" in a speech to the Scottish Labour conference, according to the BBC.

Brown will also inform delegates of progress he has made in securing international co-operation to help the world's battered economy. He is speaking at the conference in Dundee.

The speech, hard on the heels of his US visit, is also likely to dwell on the need for investment to beat the downturn.

But shadow foreign secretary William Hague said last night: "Gordon Brown's conference speech should be the shortest in political history.

"Just one word - sorry.

"His inability to own up to his part in Britain's economic downfall and its deep impact on Scotland is shameful."

In an article to be published tomorrow in the political magazine Holyrood, Mr Brown has disclosed how he and US president Barack Obama first discussed the need for international co-operation in a phone call Mr Brown took while meeting apprentices in Glasgow.

"Scotland's future prosperity - so important to those young people looking to enter the world of work - depends on countries being able to work together to tackle this global slump in demand and the loss of confidence that is hitting economies across the world," Mr Brown wrote.

"That is why we are striving for an agreement on a global new deal at the G20 summit of the world's biggest economies when they come to Britain next month."

He continued: "The growing interdependence of trade between countries means that one country acting alone to revive confidence in the economy and so sustain jobs can never be as effective as many countries acting together.

"That is why we want all countries to commit to investing now to beat this downturn."

The global nature of financial markets meant problems that started in the US wreaking "havoc" in banks across the world.

"And now our financial sector workers here in Scotland have been victims of a storm not of their making," said Mr Brown.

"So we want stronger global regulation to ensure there is no repeat of the crisis we are experiencing now."

His speech in Dundee today is also likely to see an attack on the Scottish National Party.

Mr Brown's article argued that when Scottish banks were at risk of collapse, the UK as a whole "stood by the Scottish people" with an investment bigger than Holyrood's entire annual budget.

"I think that people who are in positions of responsibility at this difficult time should be focusing on helping people through the recession and building a better future for Scotland rather than remaining fixated on separating Scotland from the United Kingdom at any cost," said Mr Brown.

"That is why Labour's approach in a devolved Scotland recognises the strength the country draws as part of the United Kingdom - added security in the hard times and the platform to build a stronger, fairer future."

He extolled the record of Scottish Labour leader Iain Gray and Scots Secretary Jim Murphy - Mr Gray for helping create nearly 8,000 apprenticeships and Mr Murphy for his efforts in helping to put together a £1bn (€1.12bn) package to go towards building a new road bridge over the Forth.

Mr Brown listed other Labour moves to help families and businesses across the UK.

"That is Labour's approach - giving real help now to families and businesses, working with other countries to end this global recession, and taking action now to build Scotland's tomorrow, today," he said.

"It sets the right course for Scotland to emerge stronger from this global downturn, and we owe it to the Scottish people to keep the country on that course in the months and years ahead."

Mr Brown's spokesman told a daily press briefing: "One of the issues we will wish to discuss with our G20 colleagues is seeking to establish general principles on the banking sector. Executive remuneration and pay will be part of that discussion."

The spokesman said different countries would want to deal with the issue in different ways, but added: "These are issues that many countries face, not just issues for the UK, and we believe there is an appetite across many countries for moving towards executive remuneration and bonuses in the financial sector which better reflect long-term performance."