Banks turns down pay rise once again

Auckland City Mayor John Banks is declining a pay rise for the second year running - and councillors may follow suit.

Tonight, the council will decide whether to increase pay for the mayor, councillors and community board members.

Last year, it turned down a 3 per cent rise from the Remuneration Authority. Council chief executive David Rankin also froze wages to council staff in the midst of the worse global economic crisis in decades.

Even though councillors opted for a zero increase, the council was bound by the 3 per cent rise, which has been squirrelled away to the tune of $118,698.

This year, the authority has recommended a zero increase, leaving the council with the question of whether to dip into the $118,698 for a pay increase.

Mayor Banks last month called a 3 per cent pay rise by Auckland Regional councillors an "act of greed".

Yesterday, he said he would not take a rise this year while people throughout Auckland were strapped for cash.

Councillors have two options - not to accept a pay rise, or make a flat payment of $565 to each councillor and community board member for the four months until the Super City comes into being on November 1.