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Home / Politics

Fitzsimons outlines plan to freeze MPs' wages

NZPA
5 Feb, 2009 03:00 PM2 mins to read

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KEY POINTS:

MPs are going to be asked to put their money where their mouths are when Parliament resumes next week.

Prime Minister John Key and others have suggested that MPs' wages should be frozen given the bleak economic climate, though there is debate about the best way to do that.

Green co-leader Jeanette Fitzsimons said she would seek to move a parliamentary resolution telling the Remuneration Authority - which sets pay for MPs - not to increase MPs' pay for the three-year term of this Parliament.

In a letter to all party leaders, Ms Fitzsimons said many MPs were uncomfortable with increases of between 3.8 per cent and 4.8 per cent last year, when others were beginning to lose their jobs. Government revenue was also falling and money used to fund MPs' pay could go elsewhere for job creation and supporting the unemployed. Ms Fitzsimons said the Greens welcomed Mr Key writing to the authority asking it to exercise restraint.

A resolution from Parliament requesting a pay freeze would add to the impact. The move followed US President Barack Obama moving to freeze the pay of top White House staff.

Labour leader Phil Goff has said restraint was needed, but a law change was necessary to allow the authority to freeze MPs' pay. At present the authority takes into account public and private sector pay rises, along with those of the judiciary.

However, the Government said the authority was able to take into account submissions when it made its decisions. Any MP could block Ms Fitzsimons' resolution from passing by just raising their voice in objection.

- NZPA

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