Editorial: Pay rise changes right move

The timing for the announcement of MPs pay rises could not have been worse, writes Inglis. Photo / NZME.

The issue of MPs getting pay rises is always emotive. But this year it has been more so than usual.

The Remuneration Authority last week announced it was awarding politicians a 5.5 per cent pay rise backdated to last July 1 - pushing the base salary of a backbench MP from $147,800 to $156,000, and the prime minister from $428,500 to $452,300. These rises would be partially offset by a drop in their travel entitlement.

Unbelievably, this meant 25 MPs no longer in Parliament would get an extra lump sum payment of about $4000. No one wonder people got angry.

And the timing could not have been worse because it came shortly after the minimum wage was increased by 50c to $14.75. MPs would receive nearly $5 an hour more in comparison.

The pay rises came under fire - including from politicians themselves. But what could they do? The Remuneration Authority decides their pay, not them. It's a familiar, but somewhat lame, comment that we've heard before.

My view has always been if MPs or anyone else receiving taxpayer money don't want their pay rises then they should publicly donate them to charity.

However, this year the matter has been torpedoed. Prime Minister John Key will use urgent legislation to change the Remuneration Authority Act so increases are pegged to the average public sector pay rise for the previous year.

This pushes down the latest rises to between 1 and 2 per cent - much more palatable.

MPs who work hard deserve their salaries. They work long hours, spend a lot of time away from home and are subjected to pressures and public exposure that few other roles can match. It can't be easy.

But their incomes are generous, perception is everything - and getting inflated pay rises while some constituents are struggling is a bad PR move.

They're also not in the private sector. It can be argued they are serving their country and it's not all about money.

Mr Key is doing the right thing, although the Government should not use this to unfairly subdue public sector pay rises.

It is, however, time to curb the Remuneration Authority's power.