An urgent overhaul of the law governing pay increases for MPs is the right move according to Tauranga MP Clayton Mitchell.
Yesterday the Government bowed to public pressure and will peg back pay rises for MPs by tying their salaries to those of the wider public sector - an increase of between one and two per cent.
NZ First MP Clayton Mitchell fully supports changes to the Remuneration Authority Act. Photo: File.
The decision follows last week's outcry when the Remuneration Authority lifted the pay of a backbench MP by $8200 - a rise of 5.4 per cent to $156,000 a year. On average, the base salary movement for MPs rose by about 3.5 per cent.
'That increase was neither necessary nor justified at a time when inflation is at 0.8 per cent,” says Prime Minister John Key in announcing proposed changes to the law governing pay increases for MPs.
'While the decision was made independently of MPs, they should not be receiving increases which are disproportionate to the wider public sector.”
He adds that the Remuneration Authority referred specifically to the criteria contained in the Remuneration Authority Act 1977 as the reason for the increases, therefore a law change was necessary.
The change will take away the Authority's discretion when setting MPs pay. The sole criteria will now be the average public sector pay increase for the previous year.
The new legislation will be backdated to July 1 last year, meaning the pay increase outlined in the latest determination will not be awarded.
NZ First MP Clayton Mitchell fully supports the change despite Prime Minster John Key having to overturn the decision on the back of strong public disgust.
Clayton admits when the news first broke he wasn't aware he was in line for a pay rise – a financial increase that didn't sit well with him.
'They should never have done that [a 5.4 per cent pay rise] in the first place and the people shouldn't have had to rise up in disgust and pay for the pay rise that MPs were given.
'The minimum wage is now $14.75 - that's a one per cent increase and is nothing compared to it being justifiable to give MPs' a five-and-a-half per cent pay increase. 'It just doesn't make sense.”
The Taxpayers' Union, despite welcoming the overhaul, is slamming the use of Parliamentary urgency to avoid the public getting an opportunity to have their say.
Taxpayers' Union executive director Jordan Williams says Parliamentary urgency should be used for legislation that is needed urgently, not for avoiding public input and the select committee process.
'While the proposed change is an improvement on the status quo,” says Jordan, 'it creates a conflict of interest for ministers negotiating public sector pay because the amounts paid to bureaucrats will directly affect what goes into their own pay packets.”
'The Government would be better served by a simple law change, allowing the Remuneration Authority to factor in the public service element of being an MP and requiring the appointment of a taxpayers' representative.
'Instead these changes set up a process where the foxes guard the hen house with no opportunity for the public to submit. It sets a dangerous precedent.”
Ministers anticipate more detailed advice from officials on the measure to be used, which will be set out in the legislation, likely to be introduced in the next sitting session.
Tauranga MP Simon Bridges and Bay of Plenty MP Todd Muller could not be reached for comment.
5 comments
no law change
Posted on 03-03-2015 14:14 | By Kiri Upoko
but none of the ministers will lobby for this law change..........all talk no action
has taken years
Posted on 03-03-2015 14:28 | By Merlin
It has taken years for John Key to do anything about this as usually disregards public opinion on referenda etc.Power to the people over this one.
Local Government and CCO Directors
Posted on 03-03-2015 14:38 | By Murray.Guy
Will Tauranga MP Clayton Mitchell advocate for Local Government elected members (Mayor and Councillors), for the unelected directors of Council/ratepayers companies (CCOs), to be accessed for incomes on the same basis?
Pay back the byelection cost
Posted on 03-03-2015 17:28 | By Annalist
Clayton should pay back the cost of the byelection to the ratepayers of Tauranga. He chose to go on the parliamentary gravy train. Come on Clayton, pay it back.
PM has bad planning skills.
Posted on 03-03-2015 19:30 | By dgk
Over 6 years in office, and suddenly it's an urgent matter. That's either very poor planning, or he's desperate for some good news.
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