SALARIES Rise Of 7½% Made Retrospective

Press, Volume CVIII, Issue 31831, 8 November 1968, Page 1

SALARIES Rise Of 7½% Made Retrospective

(New Zealand Press Association)

WELLINGTON, November 7.

Parliament today gave authority for members’ salaries to be increased by 7f per cent as from April 1, this year. The increase also covers Ministerial and members’ basic expenses, and sessional allowances.

Both the Government and the Opposition supjported the increases; the leader of the Social Credit Political League, Mr V. F. Cracknell (Hobson), opposed the report which recommended the increases.

The new salaries were recommended in the Royal Commission report on Parliamentary salaries and allowances tabled in Parliament in July.

The Prime Minister (Mr Holyoake) moved that the Royal Commission report be accepted without amendment. Mr Holyoake reminded the House that by law the commission was required to make its report a year ago, but because of the economic problems which faced New Zealand it was decided that it be deferred about a year.

Consequently, there had been no change in salaries and allowances for M.P.s for four years, and no change in basic allowances for Ministers and the Leader of the Opposition for seven years. Minimum Rates Quoting the report, Mr Holyoake said the minimum rates of wages specified in awards of the Court of Arbitration and other wage-fixing authorities advanced by 16.8 per cent between March, 1964, and September, 1967. Similarly, there was an Increase of 21 per cent in ruling rates of wages as indi-

cated by the hourly average of ordinary time of all workers in industries surveyed by the Department of Labour. Figures from the State Services Commission showed that a Public Service salary commensurate with that of a member of Parliament rose by 18 per cent between April 1, 1964, and April 1, 1968. Mr Holyoake said that the commission reported that it seemed that M.P.s would be entitled to a salary increase of between 15 per cent and 20 per cent. Relative Position

This, it said, would do no more than bring their relative position in line with increases in wages and salaries paid elsewhere. He said the commission also reported there was overwhelming evidence for a significant increase in members’ basic and electorate allowances.

The Leader of the Opposition (Mr Kirk), supporting Mr Holyoake’s motion, said that under law the increase was due last year, but members decided to defer any increase. This, he said, was an example and a contribution not made by any other group in New Zealand—it was a considerable sacrifice on members’ own Initiative. Because of the deferment, members lost between $3OO and $7OO income in the last year. Final Say Mr Kirk said that although the salary-fixing procedure with the commission was a good one, he thought it could be improved if the commission was given the power to have the final say—that its recommendations were in effect decisions. “As it is at the moment, it appears to everyone that members are increasing their own salaries,” he said. Mr Cracknell said he was opposed to adopting the commission’s report. “We, as the Government, have called on the rest of the community to exercise restraint in view of the national economic situation, with a view to curbing inflation. “This could have presented an opportunity for us to set an example to the rest of the country,” Mr Cracknell said. He said no member of the House would dare compare his financial standing with that of social security beneficiaries or with those in lower and middle income brackets.

‘Rubber Stamp’ “This House has been criticised for the rubber stamp process that takes place once an increase in Parliamentary salaries has been recommended,” Mr Cracknell said. Mr A. H. Nordmeyer (Lab., Island Bay), a former Minister of Finance, said Mr Cracknell had made no criticism of the proposed increase in Parliamentary allowances. “Mr Cracknell apparently does not oppose the increase in allowances, which in his case will amount to about $7OO a year,” Mr Nordmeyer said.

Mr Cracknell interjected and said: I opposed the report, full stop. “I am sure he will accept the allowances as he will the salary increase," Mr Nordmeyer said. The Minister of Broadcasting (Mr Adams - Schneider)

said Mr Cracknell had made it clear to a committee of members of Parliament who considered the report that he objected to the increase in salaries but not the increase in allowances and expenses. Other Earnings Sir Leslie Munro (Nat., Waipa) said it was a generally accepted view that being a member of Parliament was a full-time occupation; he should not be expected to earn some emolument elsewhere. “I cannot live on the income I receive as a member of this House and of necessity I am forced to earn money in ot’-er ways.” Noting that almost every other member of the community during the last few months had received an, increase in his salary award Sir Leslie Munro said; “We are at least entitled to a reasonable emolument and a decent standard of living.”

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