Cut Salaries Not Jobs

“There is no question that Government spending must be reduced”, said the Kiwi Party Leader Larry Baldock. “Borrowing for infrastructure spending that can be paid back over the life of the assets is one thing, but borrowing to pay for operating costs and welfare payments is not sustainable. We should not spend more than we earn, nor borrow beyond our assets.

“On TV One’s Q & A programme on Sunday, State Services and Health Minister, the Hon. Tony Ryall, was defending the cuts in staff within the health sector and I thought of how difficult it would be for those losing their jobs in a recession at a time of high unemployment.

“Surely it would be better to reduce spending by reducing the high salaries being paid in the State Service. In the past decade of so-called prosperity, when the Government had surpluses, too many public servants have had their salaries climb through the six figure mark. While the average income remains around $48,000 it is wrong, in my opinion, that public servants are receiving incredible incomes of $300-$500,000, all paid by the tax payers and rate payers of this country.

“Instead of cutting the jobs of those lower paid workers, why not cut the salaries of all those earning over $100,000 in the State Services starting with a 5% cut at $100,000 and rising by 1% for every $10,000 up to a maximum reduction of 20% over $250,000?

If this leads to a mass exodus of CEOs and Managers from the State Service we will know they were there for the money, not the good of the country. The State Service used to be called the Public Service, and was an honourable calling for many until the reforms of the 1980s. Many began their careers in the Public Service and then moved on to higher pay in the private sector after a period of service and something akin to an apprenticeship. Now the private sector has trouble competing with the salaries in the State Services.

“Perhaps the current hard times could offer an opportunity for the government to correct some obvious imbalances of the salaries in the public sector” concluded Mr Baldock.

ENDS

© Scoop Media