Time for MPs to take a pay cut

GUEST COLUMN

understandable that concrete deficit calculations will have to wait.

But as taboo as it might be to observe, there is still no ignoring the elephant in the room: this crisis is very, very expensive. That’s why it’s important for our MPs to get ahead of the inevitable fiscal challenges ahead and vote to cut their own paycheques. For both practical and symbolic reasons, Canadians need to know that the people in charge are willing to make sacrifices themselves, before asking the rest of us to endure even more pain.

Consider the enormity of the task. The Parliamentary Budget Officer projects next year’s federal deficit will be $184 billion, seven times larger than it was predicted to be just two months ago, and that analysis assumes that there will be no additional spending measures forthcoming.

Eventually, all of the measures will have to be paid for and that will require many painful choices. It won’t happen overnight, but over time, the public sector will be forced to endure salary cuts, reduced staffing levels or both. Pet spending projects and nice-to-have programs will take a backseat to core government services. Prospective tax measures designed to recoup government revenues that have been decimated by the dormant economy will have to be balanced against the risk of trampling on the recovery.

Many Canadians who have seen their paycheques shrink through no fault of their own fairly wonder why MPs should be immune from this predicament. Many MPs already understand this, which is why nearly half of them have voluntarily agreed to donate their annual pay increase this year. They know full well that taking a pay hike during this crisis looks bad, especially when they are already earning $178,900, which is triple the average Canadian household income of $59,800.

While it’s good to see MPs donating those pay raises to charity, they need to go further. Most Canadians aren’t merely forgoing raises. Most Canadians are struggling with sharp drops in their income and savings and millions are out of work. MPs need to take a pay cut.

The sooner they lead by example to show both the bureaucracy and taxpayers that our leaders are willing to share in the pain of this sobering new reality, the better placed they will be to make the case for necessary reductions elsewhere.

Around the world, many politicians seem to understand this. Hong Kong’s leader is taking a 10 per cent pay cut. New Zealand’s prime minister cut her own pay, along with her entire cabinet and top bureaucrats, by 20 per cent for the next six months. In Japan and India, politicians are cutting their salaries by 20 and 30 per cent, respectively, for at least the next year.

Canadian politicians would do well to follow suit.