In November 2009 John Key argued that MPs and Ministers need to lead by example when it came to tightening our belts:
“As I said in January when I raised the issue with the [Remuneration] Authority, it is only right that in these changing economic times, as ordinary New Zealanders tighten their belts, MPs and Ministers must also play their part”.
However despite the rhetoric, a few weeks before Christmas, four of his ministers got a pay rise thanks to Key’s new funding regime for ministerial residences, with more of them set to benefit as they enter the new system over the next 12 months.
Based on a comparison of their previous claims and their new allowances, all four of the first ministers to enter the new regime get a tax free pay increase. Pita Sharples gets $173 per week, David Carter $204 per week, and Maurice Williamson $84 per week. It’s harder to calculate the fourth minister, Nathan Guy, because he only recently seems to have started claiming.
All of them are in the same residence that they were in as MPs and in the early part of their ministerial tenures. They previously got a parliamentary allowance based on receipts to a maximum of $24,000. They now get $30,000 with no need for receipts.
Even more ridiculous, if any of them wants to really pump up their allownace all they need to do is move house. Then their new tax-free allowance increases from $30,000 to $37,500, even if they moved into a house that was actually cheaper than their present one!
At a time when John Key and his colleagues have frozen wages for others, it’s a bit rich for them to then grant themselves a new housing allowance that amounts to more than some ordinary Kiwis would earn in a year.
“At a time when John Key and his colleagues have frozen wages for others, it’s a bit rich for them to then grant themselves a new housing allowance that amounts to more than some ordinary kiwis would earn in a year”.
A bit rich? That’s an understatement. It’s not only a travesty of justice, it has to be the ultimate in hypocrisy given Key’s previous statements on the housing issue. The MSM have let this one pass by the looks of it. I hope Labour runs with it over the next couple of months.
What cheek! Next, they will try to claim they are saving us money by getting fatter pay cheques. If that is their line then these four could save even more if they only take what they were getting previously.
Is that the truth, the WHOLE truth, and nothing but the truth? Sounds to me as though you are getting near the bottom of the barrel Chris.
Will you turn down your next pay rise when the Remuneration Authority grants it?
What crap. How desperate are you Chris. Conversely a set allowance per minister will no doubt decreased the income of several ministers – why no mention of that Chris. I own a reasonably modest home in Kelburn which is rented for $35,000 per annum. That house would not be suitable for a Minister and his / her family. the reality is that $37,000 will not get a residence suitable for a minister and family in Wellington. Many will need to top up from their own pocket to obtain a suitable residence in Wellington.
You are flogging a dead horse here and all it really does is show how desperate you really are. No doubt Kiwiblog will give you another flogging over this.
The righties are coming out of the woodwork. You’ve hit a nerve Chris. Keep at it!
I think its disgusting, you’ve done some great work chris!
Monty is threatening Chris with “another flogging from Kiwiblog” Oh Chris, you must be trembling with fear.
Or is that raucous laughter I can hear drifting through the window.
Who has hit the nerve, Anne and James?? Looked in the mirror?
What about the massive pay rises senior state servants got a couple of months ago which were set in place 18 months ago by the outgoing Labour administration. That’s equally as disgraceful.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10603391&pnum=2
Money quote:
“Mr Rennie said the pay rises flowed through from a decision in 2005 to increase the overall funding for chief executives by 5 per cent a year for five years.”
Shhhhh Gooner, you aren’t supposed to mention that, they will probably delete your post.
Like someone else mentioned Chris, have you actually calculated the entire increase/decrease across the board for everyone? Or is this selection the one that suits you best? I would be interested to know how many Ministers have lost out or stayed the same. Feel free to let us know.
@Kiwireader, D.Carter, Guy, Sharples and Williamson are the only ones already in the new scheme. Another 5 come in sometime between now and the end of Feb, another 3 sometime in April, another 4 in May and the last one in Dec.
Whether they gain or lose depends on whether they stay in their current house. That’s the problem. The new regime is based on a fixed amount, not actual expenses.
@ Gooner – they could have chosen to freeze at anytime inc budget or when they informed Rem Authority re MPs salary. The 2005 decision flowed from recruitment problems at the time and Hay survey which showed relativities with private sector were/are shot. Obviously don’t do public service CE jobs for the money but it is a factor.
Chris it may have been wiser to sit on it a bit longer and catch more of the greedy self serving pricks in action and then make a real spectacle of Keys bs, then watch him squirm.
I can hear Espiner talking to him right now. Can you hear him?
“Mr Key, do you think the public might perceive your decision as a rort by the current Govt for highly paid MPs to claim more money?
“Thanks Colin that’s a good question. The previous Lab Govt spread the wealth so evenly through out the populace that we have to take every opportunity to get some claw-back (shit)…ahhh I mean I’n not really sure where I stand in regards to that, all I know is I wasn’t for or against it, I ahhhh…..(hell)… well I’m comfortable with that Colin.”
I don’t think you can compare a decision to increase pay for public servants in 2005 with a decision to increase pay for ministers in 2008. You can’t expect the govt. of 2005 to predict a recession in the following 5 years. However you can expect a govt. to act responsibily after a recession. And it doesn’t matter that some MPs will be paid less, that’s the way it should be. We’ve just been through the biggest economic meltdown in the last 50 years. A pay cut should be expected. What shouldn’t be expected is a pay increase…… But then again, why am I not surprised…..
True, n0exit, but I’d love a job where pay increases were locked in for five years @ 5% each year.
Ahh the Baubles of office!
Dont they hate it when its their baubles that are held up to public scrutiny!
Another thing that was curious to me. Key takes the DPS with him to Hawaii.
Where he stays in a gated community- incognito you would have thought would have been the whole point.
Yet Helen went cross country skiing in Norway or climbing Kilimanjaro without them.
I guess also there is the chance of ‘meeting’ Obama on the beach
Actually, according to the Herald he’s hoping to have “sunset cocktails” with Obama…
And wouldn’t that be a good opportunity to have an ‘off-the-record’ chat. Go for it JK!!