SALARIES PAID TO M.Ps.

Southland Times, Issue 25545, 13 December 1944, Page 5

SALARIES PAID TO M.Ps.

Committee Favours Increases GOVERNMENT ACCEPTS RECOMMENDATIONS (P.A.) WELLINGTON, December 12. Increases in the honoraria of members of the House of Representatives and members of the Legislative Council are recommended by the special parliamentary select committee appointed to review the provisions of the Civil List Act 1920 in a report presented to the House of Representatives today. The presentation of the report was followed by the introduction of legislation providing for the increases and allowances recommended by the committee. The committee recommended that legislation be submitted to Parliament this session to provide for: — (1) The payment of an honorarium to members of the House of Representatives of £5OO per annum and to members of the Legislative Council of £375 per annum and of the restoration of the payments to other members holding special offices to the rates ruling in 1920, providing as far as possible for the present margin between the ordinary members and the respective officers. (2) Members of the House of Representatives to be paid an allowance of £250 per annum to cover expenses incurred in their parliamentary, duties. (3) The payment to members of the Cabinet to remain as at present, subject to provision being made for each member of the Cabinet to receive the ruling rate provided in the Civil List of £l3OO, less 10 per cent. (£1170) . (4) That these recommendations be adopted for the period of the war and that fuller consideration be given to the remuneration of members of Parliament after the conclusion of hostilities.

In arriving at these recommendations, the committee stated that to meet the circumstances of the war and the present conditions members of the House of Representatives should be paid an allowance to cover the extra living expenditure incurred when absent from home during sittings of Parliament, travelling in their electorates on necessary parliamentary work and when visiting Wellington during the recess on constituency business. MORE WORK FOR MEMBERS In reviewing its considerations, the committee said that in 1920 the honorarium of members of the House of Representatives was £5OO and of members of the Legislative Council £350. These amounts were reduced in 1922 by 10 per cent, and had not been restored to the 1920 rates. The sittings of Parliament had been extended and members had been required to serve on special parliamentary committees without extra remuneration. The changed conditions of Government and constituency duties were such that members were required to devote their full time to their work. The committee was of opinion that membership of Parliament should not be confined to citizens with unearned income to meet the expenditure required for the maintenance of home and social life. To ensure the freedom of judgment of members payment for full-time services would be made from Government funds and it was undesirable for members’ honoraria to be supplemented from outside sources. On the information available it appeared that the present net income of many members of Parliament did not exceed £2OO per annum, out of which £37/10/was deducted for the national and social security charges on an assessed income of £3OO. The Commissioner of Taxes, on evidence submitted, had allowed a deduction to cover the disbursements of members for living and hotel expenses during the parliamentary sittings of £l5O a year and this sum, although recognized as incurred expenditure, had had to be met by members from their honoraria. In addition to the sessional allowance the Commissioner of Taxes had allowed to members in rural areas as a deduction from assessable income a further sum to cover expenses proved to have been incurred in travelling in their own electorates. The short payment of some had been recognized for some years, but had been met for some time by a reduction in the pay of Cabinet Ministers and the distribution of this sum among the ordinary Government members. MAINTAINING STABILIZATION “That the financial position of many members has become intolerable has been recognized for some time," the report continued. “Reluctance to take action had been due to the need for maintaining stabilization and the desire of the Government not to increase the remuneration during the war. The position now reached is such that to maintain the membership of Parliament and to reduce the hardships incurred on members and their families it is essential that some action be now taken.”

The report sets out that the honoraria paid in other English-speaking parliaments are as follows:—United Kingdom, £750 (New Zealand currency); Australia, £1000; Canada, £1133; U.S.A., £3050. The Prime Minister, Mr Fraser, said that by arrangement with the committee the Government had had an opportunity to read the report, which was accepted in its entireety, and legislative provision would be made immediately to carry out the recommendations. The Leader of the Opposition, Mr Holland, said the Opposition concurred in the findings of the committee without reservation. The increases recommended were long overdue and were nothing but sheer justice. He complimented the committee on the courage it had shown on bringing down such a report, and said he was proud to belong to a Parliament which had the courage to take action. He could scarcely believe it. (Cries of Hear! Hear! and laughter.) He had heard one member say he would not believe it until the third reading was passed, and another said he wanted to see the Gov-ernor-General’s assent before he would believe it. Mr Holland added that many able men were unable to offer their services to the country because they could not afford to do so. That was not right. Members had been paid such a miserable pittance that in some cases they had to be subsidized by outside organizations or share the income of others and that was humiliating. He also expressed the hope that the Government would consider some form of superannuation for members who had given long service, and said that if the cuts in Ministerial salaries were restored the Opposition would support that action.

Mr H. Atmore (Ind., Nelson) said he was satisfied that the people would applaud the decision taken because the labourer was worthy of his hire and every right-thinking taxpayer would agree that his representative should be properly remunerated. He supported Mr Holland in his request for a superannuation scheme. The report was adopted.