Annette
KING
Spokesperson for Local Government

28 June 2012 MEDIA STATEMENT
Bill would ensure CEO pay transparency

Local Government executives could have their salaries put under the microscope, a measure the public have been calling for, says Labour’s spokesperson for Local Government, Annette King.

Annette King today welcomed news that her Local Government (Salary Moderation) Amendment Bill has been drawn from the Member’s ballot.

“After recent local government CEO pay increases were reported in the media, the public were very vocal in their desire to see a more transparent and independent process.

“This bill aims to address many of the concerns people have expressed,” Annette King said.

“The Bill follows the process used in the public sector. Generally, under s38 of the State Sector Act 1988, public service chief executive remuneration is determined by agreement between the CEO and the State Services Commissioner, subject to the agreement of the Prime Minister and the Minister of State Services.

“My bill proposes that while conditions of employment, including remuneration of the chief executive shall be determined by agreement between the local authority and the chief executive, the local authority must obtain prior written consent of the State Services Commissioner,” Annette King said.

There are four main advantages to such an approach:

• An independent input into remuneration, terms and conditions of chief executives;
• Transparency of process removing the appearance of a 'behind closed doors deal’;
• Protection for elected councillors and chief executives from public criticism through the use of a more open and independent process and,
• Use of appropriate comparison for determining remuneration, terms and conditions for chief executives.

“From my experience, the State Services Commission has built up considerable knowledge on both recruitment and remuneration of chief executives in the public sector. It makes sense to use it to enhance the operation of local government.

“I look forward to debating the legislation and gaining the support of my parliamentary colleagues on this issue,” Annette King said.

labour.org.nz

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