MEMBERS' PAY

Poverty Bay Herald, Volume LXII, Issue 18879, 3 December 1935, Page 7

MEMBERS' PAY

LABOR CABINET SYSTEM MINISTERS WITH GROUPS POOLING OF SALARIES EXPLANATION OF CHANGES (Special to thfi Herald.) WELLINGTON, this day. Statements made since the general election by the Prime Minister-elect, Mr. M. J. Savage, fully confirm the preelection promise that if Labor became the Government, there would be a radical change in the method of Ministerial administration providing complete active co-operation of all members of the party, and extending even to the sharing of salaries from a common pool. "Labor has an alternative to government by Royal Commission," was tho way in which Mr. Savage, in his Wellington election rally, introduced his very complete references to the system . under which Labor would govern. He showed how they would work the Cabinet system. "We will,"- he sardj-"co-opt every man elected to represent Labor, to assist in the administration. We appoint Ministers with all the (authority Ministers have, and we have J£the right to get the assistance of every tt. man or woman elected in the name of V Labor,'to support them. Some of the newspapers have been unfair enough to say that we are going to increase the cost of government. I hope they are not going to worry, because it is our intention to leave the cost of government, so far as Ministerial salaries are concerned, where it is now. Our first job is to lift those who are down below, on relief work and sustenance. "It is also said we will displace Royal Commissions with our own members, who would get the fees. We do not want Royal Commissions, nor do we need their iees. Our job is to stand or fall together, and when the Minister of Lands or the Prime Minister takes three . or four others into his department, they are going to participate in his salary, just the same as a team of miners would if they were on a co-operative contract, working in the bowels of the earth." "WHAT THEY GET OUT OP IT" 4 With eaual clearness, the prospective Prime Minister told his large and enthusiastic audience about the salary distribution system. "I want to give you an idea how much the Labor men are going to get out of it. The average Labor Ministers would lose from £4OO to £BOO a year. (Mr. Savage in a subsequent speech declared that if he became Prime Minister he would receive about £BOO a year less than Mr. Forbes). He went on to tell the Wellington audience that the people associated with Labor Ministers would be participating in the Ministerial salaries because, as he. put it, "we want to deliver the goods during the life of the first Labor Government." According to the Civil List Act, there can be 10 paid Ministerial positions, and a representative of the Maori race who is> paid a special honorarium. However, there is apparently no statutory limit to the number of honorary Ministers "without portfolio," and this expedient may be adopted by the Labor Government to widen the basis of the Cabinet. The British system of Parliamentary Under-Secretaries, who are not specially paid, but are the right-hand helpers of the official holder of the portfolio, had. worked successfully, and may be considered by Mr. Savage as part of the new plan of radically extending the group responsibility of his 53 supporters in the House of Representatives. The basis for pooling of the salaries will be arranged by the members themselves, according to the resolution of the last national conference of the party. A POOL FORECAST

Members of the House of Bepresentatives after legislation in 1920 became entitled to a salary of £SOO per annum, but this has been modified during two subsequent depressions, resulting in three separate cuts. Since the economic revival there have been two partial restorations, and until they got their monthly salary cheques, members of the last Parliament were never really sure what they were entitled to receive. Under the full influence of retrenchment their salaries came down to £364 10s per. annum, which ruled through the major term of last Parliament, with improvement towards the end, so that today the newly-elected members receive £4ll 10s per annum, and in view of Labor's> policy of restoring wages and purchasing power, they may feel reasonably sure of taking their turn in complete restoration and of reaching the old maximum of £6OO per annum. The percentage reductions in Ministerial salaries were heavier than those for the rank and file. The full salary of the Prime Minister prior to all the changes was £2OOO per annum, with a house, or alternatively, a house allowance of £2OO per annum. But the cuts brought these payments down to £1377 and house allowance, if needed, of £IBO. To-day, with partial restoration, the >ime Minister is entitled to £1554 and a house. The Civil List Act, which gives statutory authority for payment of Ministers, authorises in addition to the Prime Minister, the holding of paid portfolios 10 in number carrying £I3OO per annum and house allowance, if needed, of £2OO. Ministers in residence to-day are entitled to £lOlO per annum, and if not provided with a residence, another £2OO. Representation of the Maori race on the Executive is also provided for. The position, if held by a Maqri or halfcaste, is remunerated, under conditions of full restoration, with £llOO, and if two such appointments are made, then each Maori representative is paid £SOO. The net result is that the new Government has at its disposal one position of £1554, 10 of £lOlO, and two of £SOO. Under a pooling of salaries among the whole group, regard would probably be had for the relative services rendered, as some Labor members might not be able to devote their whole time to the new consultative duties. It is within the power of the group to make mutual arrangements, but if the "flat rate' system is adopted and all share alike, every Labor member of Parliament will be receiving approximately £550 per annum.