PM disappointed with MPs' pay rise decision

Prime Minister John Key has expressed his disappointment at the Remuneration Authority’s decision to increase MP remuneration.

“I wrote to the Authority expressing my view that there should be no increase,” says Mr Key.

“My view was that, given New Zealand is set to enjoy a low inflation environment for some time into the future, an increase in remuneration was neither appropriate nor necessary.”

Mr Key says he saw no justification for the increase given inflation of 0.8 per cent in the year to December and with average wages growing at around 2.5 per cent.

Mr Key also rejects the assertion that ministerial wages should reflect those paid in the private sector for equivalent roles, saying MPs were already well-paid and not in politics for financial reward.

“The Authority needs to justify to New Zealanders why MPs need a pay increase of this size,” says Mr Key.

“If it believes that the criteria set out in the legislation leads them to these kinds of annual increases then they should advise the government and we will consult with other parties and may change the law.”

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