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Media release 29th January 2009

Remuneration law must be changed and councillors should set their own salaries and be directly accountable to their paymasters - ratepayers and the public generally.

In response to my call for a salary freeze on salaries to elected councillors the Remuneration Authority has relied on the criteria in the Remuneration Authority Act to point out that the salaries it sets must be free of political consideration, and must include consideration of a wide range of factors

The Remuneration Authority uses all this to indicate that it is really unlikely to freeze councillors’ salaries –despite the certainty that such a freeze would enjoy overwhelming public support.

No doubt the Remuneration will give a similar response to Prime Minister John Key who made a plea for a freeze on the salaries on MPs and Cabinet Ministers.

It is now clear that the Remuneration Authority sees itself – probably correctly – above the need to respond to political pressure.

Prior to the Remuneration Authority being given power to set local councillors salary levels, about 11 years ago, it was the councils themselves which set salaries - and where thus directly accountable to, and subject to pressure from, their ratepayers.

This accountability is now effectively denied to ratepayers who must meet the cost of salaries.

Offers, like that of Christchurch Mayor, Bob Parker, to donate his spay increase to a charity or local project, do not relieve the burden on the ratepayer. The council must pay whatever the Remuneration Authority decides – and councils must fund those cost almost totally out of rates income.

So Mayor Parker’s gesture may reflect his general concern for ratepayers, but does not help them at all towards reducing their rates.

It is clearly time for a change in the legislation so that, in critical times, councillors pay increases can be frozen.

And perhaps its time that salary setting was carried out once again at council level so that elected members can be held accountable by their communities.

Ends.

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