Monday, January 16, 2006

MP pay rises
Constitutional Thoughts

The Herald on Sunday has an article today (in the print edition at least, I can't find it online at present) about the latest MP pay rise. This pay rise was announced by the Renumeration Authority back in December, but was back-dated to July 1. Now, we had an election in Mid-September and a total of 28 MPs were voted out or retired, and so obviously they would get the back-dated pay rise up to the election.

Well, apparently under the Civil List Act 1979, ex-MPs continue to be paid a backbencher's salary for three months following an election. This seems a bit weird to me, but maybe someone can shed a little light on why that is the case.

In any case, the current renumeration scheme for MPs seems to be designed to cause them great criticism and embarassement every year, as the renumeration authority seems to give them a pay rise every year. Now, I am definately in favour of paying MPs, and especially Ministers adequately, as we want quality people for the jobs, however, I actually think that the system used in the United States is significantly better.

In the USA, Congress can vote themselves a pay rise (subject to it being signed into law by the President), but the 27th ammendment to the constitution means that any such payrise does not come into effect until after the next House of Representatives election (every two years). This means of course that the voters could punish the politicians and vote them out.

I think that we should adopt a similar system in New Zealand. Parliament would have the direct authority to vote themselves pay rises (so that they can't hide behind the Renumeration Authority and claim that it's not their fault they are getting a pay rise), but any such pay rise could not take effect until after the next general election (every 3 years in New Zealand).

Update: Herald on Sunday report is now online.

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