M.P.’S SALARIES MAY BE INCREASED

Press, Volume XCI, Issue 27634, 15 April 1955, Page 12

M.P.’S SALARIES MAY BE INCREASED

Proposed Bill Considered By Both Parties

FIXING OF AMOUNTS FOR EACH NEW PARLIAMENT (From Our Own Reporter) WELLINGTON, April 14. Members of Parliament are taking steps to increase their salaries and allowances. These were last reviewed in 1951. It is expected that legislation will be introduced this year to provide for an independent commission to sit soon after the start of each new Parliament, which is normally every three years, to review members’ emoluments. This proposal has already been considered by the Cabinet and a caucus of the National Party, and the proposed bill was discussed and approved by a caucus of the Opposition today. It is probable that the commission will be set up this year to review members’ salaries and allowances. The late Sir Arthur Donnelly presided over the last Royal Commission on members’ salaries in 1951. The other members of the 1951 commission were Messrs J. H. Boyes, former Public Service Commissioner, and W. E. Barnard, a former Speaker of the House cf Representatives.

The proposed bill would provide for such a commission to sit regularly every three years. A similar commission already sits to review electoral boundaries. Members of Parliament have been dissatisfied with the present salaries and allowance scale for some time. Preliminary discussions were held last year, but any decision was postponed because of the General Election last November.

Members argue that since their payments were last reviewed in 1951 the Court of Arbitration has raised wages by at least 25 per cent. Revision of members’ salaries has always been a delicate point for Parliamentarians. It is felt by both parties that instead of leaving the responsibility to review salaries to the Government of the day it would be far more businesslike to have them reviewed as of right for each new Parliament.

Before 1951 ordinary members were paid £5OO per annum, plus £250 as a tax-free allowance. As a result of the commission’s decision members' salaries were increased substantially in 1951. A member’s salary was raised from £5OO to £9OO, and his expense allowance of a flat rate of £250 was altered to range from £250 to £550, according to the classification of his electorate. This meant that a member representing a compact city constituency was paid a salary of £ll5O a year, and one representing a scattered rural electorate was paid £1450. In addition, the monthly free stamp allowance to members was increased from £3 to £4.

Before 1951 the salary of the Prime Minister was £lBOO a year, subject to income tax. In 1873 the Prime Minister’s salary was £1750, and in 1920 it was £2OOO. Under the scale operating before the 1951 adjustment the Prime Minister was also entitled to a

Ministerial residence, the value of which was assessed at £2OO for income tax purposes, or to a house allowance of £3OO, also subject to income tax. When travelling on public business he received £3 3s a day for expenses. Since 1951 the Prime Minister has been paid £3OOO a year, plus an expense allowance of £lOOO, which is tax free.

Before 1951 Cabinet Ministers received an annual salary of £ll7O, with the same house and other allowances as the Prime Minister’s. Of this annual salary £250 was tax free. Since 1951 Cabinet Ministers have been paid a salary of £2OOO a year, with a Ministerial house or a house allowance of £3OO where no house is provided. In addition they now receive an expense allowance of £450 a year. An extra expense allowance of £l5O a year is made for the Minister of External Affairs. Travelling allowances for Ministers were unchanged at £3 3s a day. In 1951 the salary of the Speaker was raised from £lOOO to £l6OO, and his expense allowance from £2OO to £5OO. Residential quarters for the Speaker are provided in Parliament Buildings.

Before 1951 the Leader of the Opposition was paid a salary and allowance as an ordinary member of £750 a year, plus £2OO for clerical expenses and up to £l5O for the hire of officii I cars. Since 1951 he has been paid a salary of £l6OO and an expense a !owance of £4OO. In addition he has been allowed to select a fulltime secret try and typist, paid for by the State, ; nd is permitted an annual allowance c ? £ 150 for travel outside his own ek rtorate. The recommendations of the 1951 Royal Commission were approved unanimously by the House of Representatives and’ passed with a minimum of discussion. *