So our politicians are underpaid – they are hard to attract and retain, so says the Remuneration Tribunal. Funny that. How is that there are always multiple candidates lining up for pre-selection?
And retain? Well apart from the occasional fish out of water like Evan Thorley, most politicians seem quite desparate to hang around – unless they are booted out by the electorate.
It does seem ironic that the Rem Trib would commission John Egan and Associates – remuneration consultants – to undertake a work value study of parliamentarians. This would be the same group which is the remuneration consultant du choix to advise companies on those egregious executive salaries that the politicians routinely complain of and pass bizarre and unworkable legislation to control, such as the two-strikes policy (when a majority becomes 25 per cent – go figure).
But don’t worry, the rise for a backbencher from $140K to circa $185K is being offset, sort of, but grandfathered, of course. They will have to forgo their overseas study trips (and we will miss out on reading plagiarised reports of the jolly times they have had swanning around the nicer parts of the world) and the gold pass – but only for new parliamentarians.
It said the pass should be abolished prospectively for all new MPs and the number of return trips for current pass holders should be reduced from 50 to 25 a year.
25 free trips a year – gosh, it amounts to real deprivation that one.
(I just checked out the Rem Trib website: it actually looks like 25 to 10, but note that spouses (spice?) are also entitled to free travel.)
Now there was talk of parliamentarians forgoing their Electoral Allowances but that has been ditched. And then there is the much rorted Printing Allowance and then Travel Allowances and sitting fees for Parliamentary Committees, including higher fees for Chairs (I think this only applies to Senators).
And then there are all the family members working in parliamentarians’ electoral offices being paid for by the taxpayer.
I think we need full transparency – like that is expected of the total remuneration packages of executives of listed companies, including the value of all the components. And full disclosure of related party issues would need to be included – eg. the fact that family members are employed in electoral offices.
Anything less is just hypocrisy. And while they are at it, this should be made to apply to the CEOs, other senior managers and trustees of the industry superannuation funds as well.
If the Rem Trib were serious about streamlining parliamentarians’ pay, this is a pathetic first attempt.
I’m not quite sure the timing is good on this one either.
Pay them nothing and keep a few of the monkeys out of the joint.
Slightly less seriously, the new rules should apply to all MPs elected and re-elected at the next election. Why should the newbies get a different deal, and why should the existing parasites keep a deeper grip on the host just because they’ve been there for a while?
pedro
15 Dec 11 at 2:44 pm
Judith,
There are plenty of people lining up to be MPs, but it’s the quality of these people that is the concern. It’s that old problem: Pay peanuts, get monkeys. If you take Pedro’s advice and pay nothing, all you would get is egomaniacs.
Parliamentarian’s expenditure is tabled twice a year for all to see. Printing entitlements are quite heavily scrutinised and will always be necessary. Travel allowance is set by the Rem Trib, and is paid according to publicly available guidelines (and how else do you expect someone to be reimbursed for travel, hotels, etc).
There are a handful of pollies in the news regularly for ripping off the taxpayer (a la Craig Thompson’s plagiarised report and Slippery’s Aquarium Keeper Monthly subscription), but most MPs work incredibly hard (as the Rem Trib found) and dont get paid properly.
BTW, love your work in the Oz,
Youngster
(Disclaimer: I work for an MP)
Youngster
15 Dec 11 at 3:19 pm
Also the Rem Trib is not quite right about the super arrangements of new parliamentarians – as just like everyone in the community. In a deal with the opposition, the employer contribution was quietly bumped up to 15 per cent from the 9 per cent.
Judith Sloan
15 Dec 11 at 3:24 pm
Agree with the demand for greater transparacy regarding remuneration packages for MPs and also agree with Pedro regarding application of the new rules following the election. If you stand for re-election you do so in full knowledge of the new remuneration package and therefore have no excuse for being exempt.
Matt
15 Dec 11 at 3:38 pm
Meanwhile the rest of the community (quite rightly) has to demonstrate productivity improvements before we can get a pay-rise.
Art Vandelay
15 Dec 11 at 3:46 pm
No wonder the black economy is getting bigger and bigger when hard-working tradies etc. get a look at these sorts of rewards, and wonder why their lot is all give and no take.
While it is important to provide a decent living for parliamentarians, obvious rorts should end for all now. Spouses for instance should always pay for themselves.
Elizabeth (Lizzie) B.
15 Dec 11 at 3:46 pm
I think it is more about getting a better quality of union thug in Parliament. The good ones can earn far more the suggested salaries
extortingnegotiating contracts on behalf of their members.Woolfe
15 Dec 11 at 4:05 pm
There should be no pension till they hit retirement age…at…all.
Why we cop a 50 year old “retiring” is beyond me.
thefrollickingmole
15 Dec 11 at 4:28 pm
Woolfe … good point. Some of those trade union officials have some very nice and exxy real estate, including holiday houses. Hard to attract them into parliament.
Judith Sloan
15 Dec 11 at 4:29 pm
This is ugly. Over at Right Pulse they noted that senior Public Servants are getting hefty pay rises as well, especially Secretary of PM&C, Treasury and Defence. Right Pulse reminds us its like an old ‘Yes Prime Minister’ episode.
Angelo Codevilla, documenting the US’s lost decade of defeat since 9/11, might conclude that this is Australia’s ruling class ruling in their own interest and hell to the rest.
Meanwhile Tony Abbott could demonstrate some serious outsider credentials by promising to overturn the obscene pay rises. Take a leaf out of Latham’s book.
John Comnenus
15 Dec 11 at 4:46 pm
Senior public servant salaries bother me a lot more than salaries of politicians.
The public servants argue they need to stay up with the private sector, but their basis for comparison is all screwed up. Most would struggle at middle management and they are not subject to objective measurement.
I say let the (serving, not former) pollies make a decent buck but put the brakes on the public service gravy train.
DavidLeyonhjelm
15 Dec 11 at 5:10 pm
No it should be juror rate for the politicians and a 1 time cash bonus to be considered at election time, however, all expenses, domestic or otherwise should be covered provided they are existent at the time of first election to parliament. This way only the most successful or most desperate members of society will even seek office. I like that mix as a new red.
As for the public servants, no super, no expenses and limitations of 5 years for all positions above middle management. Forced unpaid absences of 5 years out of every 10 even for the bottom feeders. It’s not like the talent vacuum can get any bigger and inbred Canberrans could do with a dose real competition.
PS. I’d like to see different cities tender for the role of National Governance Capital every 20 years or so just like a sort beaurocratic Olympics. It will also force party politics to adjust constantly.
Simon
15 Dec 11 at 6:06 pm
We can vote out the pollies at least, but
the Pubelic Servs at top levels are a bother -
They would NOT survive in the REAL WORLD
(Disclaimer – I once worked as a lowly minion
an overseas Embassy. It was embarrassing but
I got to live in another country for 5 years
and come back with more $ than I left with)
bumpkin
15 Dec 11 at 6:37 pm
The Canberra restaurants will be full tonight !!
hzhousewife
15 Dec 11 at 6:38 pm
I actually believe that the ALP and non-ALP politicians should be paid differently. ALP politicians are ex-unionistas who for the most part mostly aren’t used to anything other than 5 figure salaries, or at a push 6 figure salaries which start with a 1. A federal parliamentarian’s salary package would look pretty fucking hot to most ALP political aspirants.
However the conservatives source mainly from a pool of private sector figures and thus have to compete with far higher wages. We should raise the salary for people joining parliament directly from the private sector to attract a higher calibre of politician.
Oh come on
15 Dec 11 at 9:33 pm
But how good are the candidates this attracts?
Boris
16 Dec 11 at 12:18 am