No pay rises for MPs

The Herald reports:

Prime Minister Jacinda Ardern has announced plans to freeze the salaries of MPs while a review of the pay-setting system is carried out.

A smart move politically.

The Taxpayers’ Union has welcomed the MP pay freeze announcement.

“This is a very welcome and wise decision from the Prime Minister, and acknowledges the problems we flagged last year,” Taxpayers’ Union executive director Jordan Williams said.

“When the previous government decided to tie MP salaries to public sector wage growth, we pointed out that it would create perverse incentives for politicians to boost public sector wages. We’re glad to see Prime Minister Jacinda Ardern listening.”

“We will be engaging with the Government and publishing a report in the coming weeks, proposing more taxpayer-friendly ways to set MPs’ pay.”

I have said for some years that the simple solution is to set a rate of pay for an entire Term of Parliament. I’ve submitted to Parliament on this, yet the MPs keep up the masochism of payrises that always attract derision no matter what their size.

So if the Government is sensible they’ll look at a law change which states the salary and perks for an MP remain fixed during the term of Parliament. A few months before the term expires the Remuneration Authority sets the salary and perks for the upcoming term.

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