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Hipkins correct to target bureaucrat pay

Hipkins correct to target bureaucrat pay


13 DECEMBER 2017
FOR IMMEDIATE RELEASE

The Taxpayers’ Union welcomes the Minister of State Services’ new focus on restraining the wage growth of top bureaucrats.

“We’re glad to see the Minister open to action on public sector pay and hope it becomes a theme of his tenure,” says Jordan Williams, Executive Director of the Taxpayers’ Union.

“Million-dollar salaries for Super Fund and ACC chiefs are clear examples of waste, but there’s largesse across the whole sector, such as ‘golden handshakes’ for retiring bureaucrats, and more generally, public sector wages growing by 2.2 percent, compared to just 1.6 percent for the private sector.”

“Restraining public sector pay might spark resistance from Mr Hipkins’ colleagues, considering MP salaries are tied to public sector wages. He should hold firm and deliver for the taxpayer, not for his fellow politicians and bureaucrats.”

“So far, the Minister is leading from the front on this issue, to, in his words, ‘put the brakes on escalating salaries’. It’s good to see that Mr Hipkins is a friend of the taxpayer and we wish him every success.”

ENDS


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