THE PRESS TUESDAY, AUGUST 28, 1979 Is an M.P. worth $21,000?

Press, 28 August 1979, Page 16

THE PRESS TUESDAY, AUGUST 28, 1979 Is an M.P. worth $21,000?

Parliamentarians accepted salary increases averaging nearly 15 per cent last September; next month they will receive further increases—representing 17.7 per cent for back-benchers. This will put their salaries up to §21.187 a year. On the face of it. Parliamentarians are doing better in the relativity race than wage-earners. Earnings of ail employees in industries surveyed by the Department of Labour rose 15.9 per cent in the year to March, 1979, which is the latest published estimate of pay increases. In the previous year the increase in earnings was 12.3 per cent.

Members of Parliament were already well ahead of wage-earners before their latest pay rise: the average wage in April this year, according to an estimate made at that time, was about $155 a week, or $BO5O a year. The comparison between the absolute levels of the average wage and the salaries of members of Parliament, though often quoted, has only limited validity.

A better comparison would be between salary levels of members and those of business executives, senior public servants and university staff, few of whom, it should be noted, have to run the risk, every three years, of losing their jobs. The full range of these salaries is not published, but the Higher Salaries Commission, which has the responsibility of reviewing Parliamentarians’ salaries every year, has access to these figures. On hours of work, and allowing for the unremitting burdens put on members of Parliament, the commission has surely come up with a fair figure.

Since March this year, many

awards have been reviewed, and increases of the order of 9 or 10 per cent have not been uncommon. In addition, all workers will receive the 4.5 per cent wage increase approved by Parliament from September 3. Allowing for the fact that the members’ salary increase last year was retrospective to April of that year, their salary increase in 18 months has been 35 per cent; the average wage, over the same period, will have increased about 32 per cent. Both calculations are based on pre-tax figures: the after-tax figures will probably show that the wage-worker has reduced the gap.

The salaries of Cabinet Ministers and other senior members of Parliament—Leader of the Opposition, party whips—now range as high as $52,337 for the Prime Minister. It is difficult to comment intelligently on these salaries without access to the array of figures available only to the Higher Salaries Commission. It should be noted, however, that roughly; half of these large salaries will be deducted in taxation.

As for the ordinary back-bencher, it can be said that he has been treated fairly by the commission. It is often said that people get the government they deserve; if we are not prepared to pay members of Parliament generously we can scarcely expect men and women of ability to stand for Parliament. Having entered Parliament, and having put themselves at the beck and call of their electors, members should feel that the electors are willing to pay a decent salary. It is still a fair guess that few people would stand for Parliament for the sake of the money. Most members could do as well, or better, in other fields and for a good deal less trouble