Grey Power Federation Press Release

Freeze on High Level Public Sector Salaries

Grey Power calls on the Government to follow the lead of the ANZ Bank and freeze the salary increases of senior public sector staff for the next year and restrict overall cost of executive salary increases to 1% to be allocated across staff at lower levels who have performed well.

“Government and local authorities should all take note of the ANZ Bank’s action and follow their example,” said Mr Roy Reid, Grey Power National President.

“It is a key Grey Power election strategy to press Government to adopt relevant economic and social policies to reduce the income gap between the rich and the less well off in New Zealand. The ANZ Bank approach of restricting senior executive salary increases should be recognized as a major step in the right direction and be adopted by both central and local Government.”

ANZ Chief Executive Michael Smith has announced there would be a limited salary increase budget of 1% for the top 900 Bank executives this year. This meant that salaries for most executives would remain fixed for the next year with rises targeted at those positioned lower and performing well. “We are taking action to position ANZ ahead of the curve by making decisions that demonstrate to our people, customers and shareholders that we are running our business in a responsible and sustainable way.”

“It would be an appropriate and appreciated recognition of the financial difficulties the country and the people of New Zealand face if the Government and local Councils could take the same stance and demonstrate that they also are running their operations in a similarly responsible and sustainable manner”, said Mr Reid.

Economic and political commentators have been critical of the high level and large increases in senior public service salaries in recent times and called for restraint.

It is particularly important that the administrative, governance, financial and professional sectors share the difficulties and restraints that the productive industries and commercial companies face in these depressed economic times where many people are facing reduced incomes and losing their jobs.

A successful economic and social future for New Zealand is critically dependent on establishing a more equitable income spread, reducing the country’s collective administrative and governance overhead costs and seriously increasing the real productivity and effectiveness of our work force.

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