Public service chiefs get big pay hikes

The State Services Commission has given big pay rises to key Government department chiefs over the past year and is warning that even larger increases may be needed.

The winners include the chief executives of Foreign Affairs and Trade, Treasury and the Labour Department, whose salary package bands were increased by $60,000 each during the 2004-05 year, the commission's annual report reveals.

Foreign Affairs and Trade chief executive Simon Murdoch is the biggest winner of the three, as his salary band was also given a $40,000 injection the previous year.

He is now one of the three highest-paid public service heads earning between $420,000 and $429,999. The other two are Treasury Secretary John Whitehead and Inland Revenue Commissioner David Butler.

The overall increases are bigger than those awarded last year and have narrowed the gap between the public service chief executives and the highest-paid person on the public payroll, the Police Commissioner, whose salary is set by the Remuneration Authority.

Commissioner Rob Robinson, soon to retire, earned just $20,000 extra in the last pay round, but it came on top of a big rise last year and his package is worth $440,000.

Ministry of Social Development chief executive Peter Hughes and Education Secretary Howard Fancy reaped $50,000 salary band increases and another seven chief executives got $40,000 rises.

There are now six department chief executives earning more than $400,000, a big change from last year when Mr Butler was the highest earner within the core public service, on a maximum remuneration package of $389,999.

Three chief executive positions have had their salary bands reduced. The Customs, Corrections and Fisheries chiefs have lost $20,000 to $50,000 of their packages.

The biggest increase awarded by the Remuneration Authority went to the Chief of Defence Force, Air Marshal Bruce Ferguson.

He has gained a $40,000 rise, taking his salary to a maximum $349,999.

State Services Commissioner Mark Prebble, whose salary band went up $30,000 to a maximum $399,999, said in the report that core public service salaries were too low compared with other public sector jobs.

He had warned last year that despite rises the discrepancy was growing.

"Even after these [latest] increases, public service chief executives' remuneration continues to be below par for equivalent-size roles in other parts of the public sector."

After the latest pay round only chief executives of the smallest departments could be considered to be properly paid, he said.

"I am now at a point where I need to give serious consideration to a step change in the levels of remuneration offered to public service chief executives.

"Without this change I believe I will be unable to attract and retain highly competent public service chief executives."

The rises for the public service heads - around 15 per cent - have been revealed as the Public Service Association continues to press for wage rises.

The Engineering, Printing and Manufacturing Union, which has pushed for a 5 per cent pay increase, estimates that thousands of its members have picked up an extra $1900 this year.

Meanwhile, Dr Prebble expressed concern about the risk posed by the rising number of internet blog sites, appearing to warn public servants about posting opinions that could bring their agencies "into disrepute".

"In some online forums, there have been various allegations, or personal slurs, made against senior public servants," he said.

"It would be regrettable if this new medium gave unjustified currency to baseless accusations. On occasion the entries in some weblogs have amounted to political personal attacks on public servants."