National seeks answers on PSA payments

National’s Finance spokesman, Don Brash, is testing the legality of lump-sum payments made to civil servants simply for belonging to a union.

Figures released by the Finance Minister show the Inland Revenue Department awarded $1.7 million in lump-sum payments to union members on its staff this year, and indications are that other departments have paid similar amounts.

Dr Brash has written to the Auditor General today seeking clarification that the payments are legal.

“On the face of it, these payments seem in clear breach of Section 9 (Prohibition on preference) of the Employment Relations Act. They may well be in breach of other legislation as well..,” Dr Brash states in his letter.

Dr Brash goes on to ask what measures might be taken by the Government to rectify the situation if the payments are not legal.

“Many New Zealanders will want an answer on this issue, as I know many agree that rewards should be based on performance and productivity, not on whether you belong to a union,” says Dr Brash.

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