No pay rise for MPs this year

MPs and ministers have got their wish and will receive no pay rise for the 2009/2010 financial year.

The Remuneration Authority released its decision today, saying in light of Parliament's message to it about restraint in times of economic recession there would be no increase to their pay.

The authority determines salaries and allowances for MPs, the judiciary, other statutory positions, mayors and local authority representatives.

Its decision means Prime Minister John Key will stay on $393,000 until at least July 2010, when the authority will once again begin considering the issue.

It usually releases decisions late in the year, backdated to the beginning of the financial year.

Ministers inside Cabinet will remain on $243,700 and ministers outside Cabinet on $204,300. Ordinary MPs with no extra duties get $131,000.

The authority also said that MPs' expenses would remain frozen at $14,800 for MPs, and $19,700 for the Prime Minister.

The authority had indicated it could not take solely into account the recession when setting MPs' salaries, as it had to be mindful of other issues.

Parliament was to pass a law forcing the issue, but that law has not yet passed and the authority - now headed by Michael Wintringham - seems to have changed its mind.

Mr Wintringham, a former State Services Commissioner, was appointed in September.

Governor-General Sir Anand Satyanand in January wrote to the authority saying he did not want a pay rise, but still got it.

He said he would pay the money back into the Crown's account.

The following month MPs unanimously passed a motion asking that they not get a pay rise this year due to the tough economic times.

In its determination today the authority referred to the motion in Parliament as one reason for not awarding a pay rise.

Earlier, in its annual report, the authority said the 2008 increase of between 3.8 per cent and 4.8 per cent for MPs was lower than salary movements in senior state sector positions in the previous year.

"Maintaining relativities between Parliament, the judiciary and the public service is increasingly a challenge for the authority."

- NZPA