Local Government New Zealand president Lawrence Yule. Photo / Duncan Brown
Many of the country's mayors and councillors are seriously considering refusing their latest proposed pay rise, Local Government New Zealand president Lawrence Yule says.
The Remuneration Authority, which sets the pay of MPs, the governor-general, judges and councillors has written to councils seeking submissions on a proposed pay
rise which would kick in on July 1.
How much individual councils get depends on a complex formula, but for many councils the proposed rise is about 3 per cent.
MPs yesterday unanimously passed a motion asking that they not get a pay rise this year due to the tough economic times.
Governor-General Anand Satyanand has also written to the authority requesting no pay rise.
Those gestures have spurred calls for mayors and councillors to do the same.
Prime Minister John Key has also hinted that other public servants, including judges, might want to consider refusing to accept a pay rise.
The current determination of judges' salaries expires in September but a spokesman said the judiciary had no comment.
Mr Yule today said that in light of recent publicity around pay rises Remuneration Authority chairman David Oughton had indicated to councils that if they unanimously rejected the authority's proposed pay rise he was likely to accept that decision.
Mr Yule, who is mayor of Hastings, said he himself had decided to decline a pay rise and he was aware many other mayors had made the same decision.
"I understand the significant economic conditions and everyone is calling for restraint and everyone has to do their bit," he told NZPA.
"I'm wanting to send a message that I am taking that on board."
Many councils around the country were also seriously considering whether to accept a pay rise or not.
However, a single councillor refusing to decline the rise would put a spanner in the works, Mr Yules said.
That would mean those councillors who wanted to decline the rise would have to take the money in the first instance and then somehow divert it back to the council or to a charity.
He said in the case of small councils there was still a strong argument for a pay rise as many in the local government sector believed councillors on smaller authorities were underpaid for the work they put in.
Around the country, Waitakere City Councillors have deferred a decision for a month over whether to accept the proposed pay rise, while some Porirua City Councillors have called for their colleagues to stop claiming mileage and other allowances.
- NZPA
