SALARIES POOL.

Auckland Star, Volume LXIX, Issue 136, 11 June 1938, Page 19

SALARIES POOL.

N.Z. INNOVATION.

PARLIAMENT MEMBERS.

HOW THE SYSTEM OPERATES.

Our Own Correspondent.) WELLINGTON, this d*y. Oie of the most remarkable innovations of an innovating Labour Government was the pooling of all salaries of tlis 54 Parliamentary members of the party. It had the result of levelling up tho general average, because the higher salaries of Ministers went into tLe salary pool. Inquiries show that throughout the life of the present Parliament the system hae been working, and that there is no proposal for any modification. "Oh yes, it is still working emoothly," if plied the Prime Minister, the Rt. Hon. M. J. Savage, when he was asked about •the salary pooling scheme in hie party. '•The principle behind it k that all meml>ers of the party take an active share in tho administration of the country. Members who are not Ministers have been doing so. They represent the (Jovernment in various, centres, and they have been keeping closely in touch with the country' 3 requirements in a way which will compare favourably with any <.ther period in the Dominion's history." The Prime Minister was asked how tho pool system overcame the problem of the income tax. The Laid and Income Tax Department recognises only the statutory payments to members and Ministers, although these in actual practice differ considerably from the sums voted by Parliament. Income tax, it was explained by Mr. Savage has been covered by the organisation of the salary pool, so that a member of Cabinet would only be debited with the income tax which would be payable if hie official salary squared with the leeeer «um awarded out of the salary pool. Members' salaries prior to the various retrenchment cuts amounted to £500 ]>er annum. Restorations brought the salaries back to £450 per annum from July 1, 1936. when the Legielative Councillors'salaries stood at £315 per annum. However, Labour members, as a consequence of the sharing system with Ministers, have been averaging about £.345 per annum. This unofficial increase has come from the higher salaries paid to Ministers, who have in general contributed between £400 and £500 towards the emoluments of their colleagxiee not holding Cabinet rank.- ■ The Prime Minister ie actually receiving C7OO less than his Civil List salary, but a special allowance of £250 was set aside by the pool to meet the entertainment obligations necessarily associated with tlte head of the Government. The net. result so, far as Mr. Savage is concerned is that he receives slightly leas than half the gross salary of £1800 associated with the position.