Civil servants in the money

Bureaucrats are three times more likely to earn six-figure salaries than other workers, a study of Government pay rates reveals.

Figures released under the Official Information Act show 10 per cent of public servants from five of the biggest departments earned $100,000 or more last year - most of them in Wellington.

Over the same period, just over 3 per cent of workers nationwide earned a six-figure salary.

The surprising new figures appear to give the lie to the oft-quoted claim that Government department officials take a "civil service discount" to their salaries, working for less than those in the private sector because of their commitment to serving the public.

The outgoing Director-General of Health, Stephen McKernan, was believed to be the best-paid civil servant, earning more than $550,000.

It comes after the Government has frozen the senior management salaries and promised to cut the number of "back office" jobs.

State Services Minister Tony Ryall said: "All chief executives of Government departments know they are operating in times of restraint, and are looking for ways to save money, and shift resources from the back office to frontline services."

Business New Zealand chief executive Phil O'Reilly said the Government had to ensure it did not create a civil service "elite".

He said: "They need to be very careful that they don't get themselves out of whack with the private sector. We don't want to see salaries in the public sector get too far ahead of what the private sector is paying."

Of those surveyed, the department with the highest proportion of top earners is the Ministry of Foreign Affairs and Trade, where around one in four staff earns $100,000 or more. A spokeswoman said in addition to ambassadors, they employed senior staff who were responsible for "key initiatives" like negotiating free-trade agreements.

One in six staff at the Ministry of Health, which is being restructured, is paid more than $100,000.

Andrew Little, national secretary of New Zealand's biggest union, the EPMU, said the top-paid civil servants would often hold postgraduate degrees and be responsible for budgets worth tens of millions of dollars.

He said: "I don't think the private sector is a very good model for pay rates. Businesses are good at paying their senior management very well."