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Home / Rotorua Daily Post

Most Rotorua council elected officials say no to freezing pay increase

Kelly Makiha
By Kelly Makiha
Multimedia Journalist·Rotorua Daily Post·
30 Aug, 2018 09:14 PM6 mins to read

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The Rotorua Lakes Council elected officials during a meeting. Photo / File

The Rotorua Lakes Council elected officials during a meeting. Photo / File

Most elected officials at the Rotorua Lakes Council say they won't take up a challenge to freeze their latest pay increases.

Rotorua's mayor and councillors have just been given pay rises, effective July 1 this year.

The pay rises are determined by the Remuneration Authority, a national organisation, following a process that investigates their workloads and is not influenced by the council itself.

The New Zealand Taxpayers' Union has written to every local councillor and mayor in the country, challenging them to follow Prime Minister Jacinda Ardern's lead and freeze their pay rates until they say "local government finances are brought under control".

The taxpayers' union letter explains councillors would not have to overrule the Remuneration Authority but personally choose not to accept increased remuneration this year by instructing the chief executive to return the additional remuneration to the council's consolidated fund.

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Three of the 11 elected officials on the Rotorua Lakes Council confirmed they would consider the challenge with most of the others saying the salaries were small considering their workloads or that taxpayers' union challenge was just a "stunt" and either should be ignored or wouldn't make a difference.

Mayor Steve Chadwick's salary had increased in the coming year to $138,041 from $132,069 (including a vehicle allowance of $3654) and deputy mayor Dave Donaldson's salary had increased from $57,514 to $69,893.

Committee chairs, Merepeka Raukawa-Tait and Charles Sturt, are now getting $58,860 compared with $52,396 and $51,084 respectively and deputy chairs Tania Tapsell and Karen Hunt are getting $58,860 - the same as the chairs - compared with $50,428 and $54,251 respectively.

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Cultural ambassador Trevor Maxwell's pay has increased from $48,045 last year to $53,343 in the coming year.

Councillors Rob Kent, Mark Gould, Peter Bentley and Raj Kumar have been given increases to $47,827 compared with $44,501, $45,032, $44,726 and $26,060 (part payment as only elected in November 2016) respectively.

Ardern announced plans last week to freeze the salaries of MPs while a review of the pay-setting system was carried out. The authority had recommended MPs get a 3 per cent pay rise backdated to July 1.

Some councils within New Zealand are reportedly considering the challenge.

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The Rotorua Daily Post asked Chadwick and all councillors whether they would consider freezing pay increases.

In a written response, Chadwick replied: "We have not discussed this as a council but if it is something councillors want to discuss we will do so".

However, councillor Mark Gould tried to raise it in yesterday's full council meeting as an urgent item but Sturt called a point of order with Chadwick ruling it out of order.

Sturt said in the meeting he had tried in the past to reject pay increases but he had been turned down because it was a "legislative requirement".

Chadwick said in the meeting it was not an urgent item of business and it had already been paid out.

"I think if councillors wanted to discuss it that's a green room discussion and it's certainly not a debatable discussion at the council table so I rule that out of order."

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Councillor Mark Gould told the Rotorua Daily Post, before the meeting, salary increases had in the past been on the council's agenda but hadn't this year and he said the only way to debate it was to make it an urgent business item.

Meanwhile, Hunt told the Rotorua Daily Post she didn't support the taxpayers' union calls.

"We have a professional body that analyses the salaries and workload all over New Zealand and our councillors in particular were recognised as working far in excess of the remuneration. For a few it is a full-time occupation and they give it their all."

Hunt said the taxpayers' union call was a political stunt by a few disgruntled members of ratepayer groups who were now banding together.

Will you freeze any pay increases recommended by the Remuneration Authority in the coming year? Why, why not?

Rotorua mayor Steve Chadwick
Rotorua mayor Steve Chadwick

We have not discussed this as a council but if it is something councillors want to discuss we will do so.

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Rotorua mayor Steve Chadwick

Rotorua Lakes deputy mayor Dave Donaldson.
Rotorua Lakes deputy mayor Dave Donaldson.

Since July 1 this year as deputy mayor I earn less for what I estimate to be a minimum 50 hours a week, not including travel, than the administration support clerical worker I'm married to. It's worth adding that elected members are not entitled to any employer contributions to Kiwisaver, so good luck attracting the right people under age 65.

Deputy mayor Dave Donaldson

Rotorua Lakes councillor Merepeka Raukawa-Tait.
Rotorua Lakes councillor Merepeka Raukawa-Tait.

I don't ask anyone to freeze their salary and I don't expect anyone to ask me either. What councillors are paid is hardly excessive. Ratepayers though should feel they are getting value for money. If not vote for change. The Remuneration Authority has recommended a pay increase. I will accept it.

Councillor Merepeka Raukawa-Tait

Rotorua Lakes councillor Charles Sturt.
Rotorua Lakes councillor Charles Sturt.

I have tried this before to put a freeze on increases but because it is legislated by Government we couldn't refuse it. However, in the past we were told we could donate the increase if we didn't want to receive it.

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Councillor Charles Sturt

Rotorua Lakes councillor Tania Tapsell.
Rotorua Lakes councillor Tania Tapsell.

Did not respond

Councillor Tania Tapsell

Rotorua Lakes councillor Karen Hunt.
Rotorua Lakes councillor Karen Hunt.

No. I give it my best and I work very hard at my job and devote all of my time to it. Most of us do it out of a deep sense of service and the remuneration we get in no way compensates for skills, passion and commitment that many of us give."

Councillor Karen Hunt

Rotorua Lakes cultural ambassador councillor Trevor Maxwell.
Rotorua Lakes cultural ambassador councillor Trevor Maxwell.

When Jacinda Ardern made the announcements I thought it was a good gift. We should follow. I am supportive of that move.

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Cultural ambassador Trevor Maxwell

Rotorua Lakes councillor Mark Gould.
Rotorua Lakes councillor Mark Gould.

I agree with the decision by the MPs of New Zealand not to increase their salary for the next 12 months. I feel the decision by councils in New Zealand not to increase their salaries for 2018-2019 is too late. I am in favour of not having an increase for 2019-2020 year.

Councillor Mark Gould

Rotorua Lakes councillor Peter Bentley.
Rotorua Lakes councillor Peter Bentley.

If I thought that freezing my pay would result in our local council getting its debt under control I'd do it in a heartbeat. But I do not believe it would make any difference under the present regime

Councillor Peter Bentley

Rotorua Lakes councillor Rob Kent.
Rotorua Lakes councillor Rob Kent.

Offering to forego pay increases by overpaid government officials responsible for rampant overspending on high public profile projects whilst at the same time underfunding core services such as public health and education is nothing more than a publicity stunt, and should be treated as such.

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Councillor Rob Kent

Rotorua Lakes councillor Raj Kumar.
Rotorua Lakes councillor Raj Kumar.

Yes. But I am not in for the money and never have been. I went in there because I really enjoy working for the community. Whether they freeze it, take it away, it makes no difference to me. But if you pay peanuts you get monkeys.

Councillor Raj Kumar

How the Remuneration Authority works:

Under schedule 7 of the Local Government Act 2002, the Remuneration Authority sets the
remuneration for all elected members of local authorities.

The authority is obliged to have regard to the need to minimise potential for behaviour distortion, maintain fair relativity with other levels of remuneration elsewhere, be fair to both elected members and ratepayers, and attract and retain competent people.

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