With salary packages of between $180,000 and $500,000, New Zealand Members of Parliament currently earn more than 99% of their constituents. This gross economic inequality between voters and their representatives is due to a combination of factors, but mostly it reflects the belief of MPs that they are ‘professional politicians’ rather than ‘public servants’ and that they therefore should be compensated with a market-based remuneration in line with those in other professional careers.
A large part of their salary package comes from their many opaque allowances and expenses, which have been surreptitiously added to their incomes over recent decades. The holiday travel subsidy that MPs legislated for themselves – in which they have received up to 90% off international flights, and for which National MP Pansy Wong has just resigned her Cabinet post over – has been one of the most contentious, illogical and flagrant ways in which MPs have attempted to inflate their personal affluence. Yet with the mounting public awareness of the rorts and misuse of taxpayer-funded parliamentary resources, together with recent increasing awareness and concern about economic inequality in New Zealand, there has never been a better time for the public to demand the rollback of MP salaries and perks. And the abolition of the international holiday travel subsidy has been a good place to start, although the devil is very much in the detail of how the perk is axed and how these supposedly minor details are sorted out.
This blog post outlines why the perk had to be axed, but more importantly it highlights the many crucial issues that are involved in the process of reforming the MP perks system. It does so by putting forward “10 pertinent questions” that the public and politicians need to consider, and also attempts to provide some detailed answers to them. In brief, this extensive blog post argues for the holiday perk to be totally axed without compensation, exemptions, or bureaucratic reviews. Former MPs need to be stripped of their entitlement, no new travel scheme should be re-established to replace the rort being axed, and we should avoid falling for the populist proposal that so-called ‘independent bodies’ (such as the Remuneration Authority) should determine MP pay, allowances and perks. [Read more below]