Change system & incentivise low inflation

The Remuneration Authority has recommended a small increase in pay for MPs and that has resulted in the usual carping:

While Christmas is still grim financially for many New Zealanders, politicians – who earn nearly three times the average wage – are about to pocket even more. . .

Good MPs are worth far more than they get.

I have some idea of the challenges my MP Jacqui Dean faces servicing an electorate which covers an area of 34,888 square kilometres as well as chairing a select committee and she more than earns her salary.

Others are overpaid for the little they appear to do but the system doesn’t differentiate for performance, or lack of it.

It’s no use criticising the MPs for the pay increase, the Remuneration Authority is an independent body.

But I would support the change in the system suggested by Kiwiblog :

. . . The easy way to solve this, is what I have long advocated – set the salary and associated terms around three months before each election, for the next term of Parliament.

So MPs would get elected to Parliament for a term, on a known salary which remains constant during that term. . .

That’s simple and fair.

It has the added advantage of incentivising MPs to keep inflation low so they don’t lose the real value of the salaries.



3 Responses to Change system & incentivise low inflation

  1. Andrei says:

    Good MPs are worth far more than they get.

    Maybe so, but alas they are few and far between.

    If you look at most MP’s resume’s the striking thing is how thin most of them are – the are people who have, for the most part done sfa with their lives


  2. homepaddock says:

    Income isn’t the only measure of doing more than sfa with your life, but an MP who came into parliament before MMP told me all but one National MP took a pay cut, all but one Labour MP got a pay rise.


  3. Andrei says:

    Income isn’t a measure of anything except the ability to feather your own nest.

    Here is a classic example of the bullshit our politicians havve foisted upon us All really atractive to accountants and lawyers who are good at the jaw jaw and double talk but an expensive pain in the you know where to those who want to produce something tangible, like food for people to eat.

    Anyway our “talented” politicians Christmas present for themselves is a pay rise and for the peasantry massive increases in petrol and tobacco prices.


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