RTTNews - UK Chancellor of the Exchequer Alistair Darling ruled out setting up a High Pay Commission to act as a watchdog over paying high remuneration to bankers on Monday.

The Compass, an independent democratic left pressure group had called for the establishment of the pay commission. Darling said, he was not persuaded by the idea.

Responding to the Chancellor's comment, Gavin Hayes, General Secretary of Compass said, It is exceptionally disappointing that the Chancellor has attempted to close down the debate on excessive pay. The group said doing nothing on excessive pay is not an option.

According to Compass, the UK urgently need a High Pay Commission to instigate a holistic and evidence-based investigation into the affects of excessive pay on the economy and society, as well as come up with concrete solutions to tackle it.

In an interview to Sunday Times, Darling said he is willing to legislate a law that curbs banks from paying huge remuneration.

The Financial Services Authority had introduced a remuneration code last week, demanding large banks, building societies and broker dealers to follow remuneration policies consistent with effective risk management. But, the new code is not very effective as it is applicable only to 26 banks and financial firms operating in the UK.

The British Banker' Association assessed that the pay rules in the UK are more stringent that in many other nations.

The High Pay Commission, mooted by Compass, is something similar to the Low Pay Commission launched in late 1990s to recommend the minimum wage.

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