Pay Cut Law Failure: Remuneration Authority Refuses To Use New Powers

The Remuneration Authority’s refusal to cut salaries for councillors and mayors paid under $100,000 makes a joke of the Government’s much-vaunted pay cut legislation, says the New Zealand Taxpayers’ Union.

Taxpayers’ Union spokesman Jordan Williams says, “In some parts of New Zealand, someone paid $100,000 will be among the very highest earners in their community. In the private sector, these earners are taking financial haircuts. Why does the Remuneration Authority think ratepayer-funded earners should be protected?”

“It was bad enough that the Government has only temporarily allowed the Remuneration Authority the power to cut pay. Now we see the Authority refuse to even use its temporary powers. This was the inevitable result of handing discretionary powers to an authority that has hiked MP and councillor salaries beyond the rate of inflation, year after year.”

“At the very least, council leaders should have the right to voluntarily cut their own pay. As it stands, councillors wishing to show solidarity with the private sector are placed in the awkward position of having to donate their salary to charity, instead of returning it to ratepayers.”

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