Coronavirus: Act leader David Seymour calls for cut to MPs' pay

Act Party leader David Seymour wants politicians to take a pay cut to show leadership in the economic fallout from the Covid-19 outbreak. Photo / Mark Mitchell

Act leader David Seymour wants MPs and public sector bosses to take a temporary 20 per cent pay cut to show solidarity with those suffering an economic hit from the global Covid-19 outbreak.

Prime Minister Jacinda Ardern told the Herald she wasn't opposed to the move, having had MPs' pay frozen in 2018.

But she did not commit to exploring Seymour's idea, saying: "It's not beyond Parliament to make such decisions [to cut pay] and it's usually in circumstances like this."

National Party finance spokesman Paul Goldsmith was also supportive but non-committal, saying the idea was valid, given the extraordinary circumstances.

Seymour raised the idea while speaking in the House after the Government released its $12b package to bolster health services and soften job losses.

"I've never seen MPs look up when I was giving a speech like that, in all of the speeches I've given in Parliament," Seymour told media after his speech.

He said the pay cut should be 20 per cent for 12 weeks, the same length of time that the Government's wage subsidy for employers is currently on offer.

"New Zealanders in the private sector are going to be taking a hit, people going to four day weeks, others losing their jobs," Seymour said.

"Parliamentarians could show leadership from the front. Ministers could ask chief executives of the civil service to do the same thing. That's the kind of leadership that New Zealanders actually deserve."

He said if high-paid public servants also did the same, it would make more room for the public sector to hire more people, which would help soften the blow on the private sector.

Tourism and airlines have been particularly hit hard, and Air New Zealand chief executive Greg Foran has already offered to cut his pay of $1.65 million a year by $250,000.

That follows pay cuts by other airline bosses around the world including those at Singapore Airlines, Thai Airways and Qantas.

Green Party co-leader James Shaw supported Seymour's sentiment, adding that the Greens have wanted MPs' pay to be pegged to the median wage.

With a recession looming, median wage would be expected to fall and MPs' wallets would be hit by the same proportion, Shaw said.

"If Parliament had accepted that on the multiple times we have proposed that, then what Mr Seymour is suggesting would happen as a matter of course."