NoMoreRates.com
The Nationwide Campaign To Reform The Council Rating System

Media Release - 28th January 2009

Statement from David Thornton

Remuneration Authority Response To NoMoreRates Call For A Freeze On Elected Council Members Pay Increases.

The Authority acknowledged ratepayers concerns but its Chairman has advised me the Authority is unlikely to approve a 'zero' increase because it must take other factors into account.

Despite that it does appear that salary increases this year are unlikely to be substantial.

This consideration should also be applied by council Chief Executives when reviewing staff salaries and wages - because it is the ratepayers who pay for all of these.

[Full copies of the exchange between NoMoreRates and the Remuneration Authority are set out below]

----- Original Message -----
From: Info-Remuneration Authority
To: David Thornton
Sent: Wednesday, January 28, 2009 2:43 PM
Subject: RE: Request for freeze on elected local authorities remuneration.

Dear Mr Thornton

I refer to your email of 22 January in which you urge the Remuneration Authority not to increase the remuneration of elected members of Local Authorities this year.

The Authority, in making its remuneration determinations, is bound by the criteria which are specified in the Remuneration Authority Act. The Act requires us to set remuneration which is sufficient to attract and retain people to the various positions which fall under our jurisdiction; has relativity to the remuneration of comparable positions elsewhere; and is fair both to the office holder and to the ratepayers or taxpayers who fund their pay.

While one of the criteria may carry more weight in our decisions in some years, we cannot wholly set aside the others. Furthermore, a fundamental role of the Authority is to ensure that decisions on pay for those in public office are not unduly influenced by immediate political considerations.

One other comment is relevant to your concerns. The Authority is not a "market leader" in remuneration fixing. This means that there is often a lag between the pay information we collect to help inform our decisions, and the pay adjustments, if any, we determine for those within our jurisdiction. Understandably this can generate adverse comment.

All that said, the point you are making about the impact on ratepayers is a fair one, and one which we have already taken into account in our consideration of Local Authority remuneration this year. Although, given the other criteria we are obliged to take into account, we are unlikely to opt for a zero adjustment, our determination will reflect the slowing in remuneration growth more generally in New Zealand over the last year, as well as changes in relativities across councils.

David Oughton
Chairman
Remuneration Authority

________________________________________
From: David Thornton
Sent: Thursday, 22 January 2009 3:26
To: Info-Remuneration Authority
Subject: Request for freeze on elected local authorities remuneration.

NoMoreRates.com
The Nationwide Campaign To Reform The Council Rating System

22ND January 2009

Chair and Members
Remuneration Authority

Request for freeze on elected local authorities remuneration.

Following the Prime Minister's proposal to you that there should be no pay increase for Members of Parliament in the current year, due to the critical international financial crisis,

I urge your Authority to make a similar decision in relation to the remuneration of elected members of all regional, city and district councils, and community boards.

While the Prime Minister may be making his appeal as a sincere public gesture, my appeal to you is on behalf ratepayers who are directly responsible, through council rates, for funding any increase in elected members pay.

I do not believe such a move will cause any hardship to elected members generally - especially councillors in the larger councils whose pay levels are currently between $70,000 and around $100,000.

A freeze on total remuneration would still allow some re-balancing of remuneration within the current remuneration limits - for example, reducing the councillors pool of funds to allow an increase in payments to community board members, whose current remuneration can be as low as 10% of a councillor's salary.

I ask you to give urgent consideration on this request.

David Thornton
Founder/Organiser - NoMoreRates campaign

ENDS

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