Mayors opt for pay cuts
Two Taranaki mayors and their council chiefs will take 10 per cent pay cuts for the next six months in the wake of the coronavirus pandemic.
It comes after Prime Minister Jacinda Ardern announced on Wednesday that along with Government ministers and public sector chiefs, she would take a 20 per cent pay cut for six months.
Mayor and councillor pay packets are set by the Independent Remuneration Authority and the rules do not allow for salary reductions.
However, New Plymouth Mayor Neil Holdom, whose remuneration package in the last financial year was $142,271, and new South Taranaki Mayor Phil Nixon, whose remuneration package is worth $126,000, have got around this by promising to donate 10 per cent of their earnings to a mix charities.
The cuts are in recognition of the hardship suffered by hundreds of thousands of workers throughout the country who are unable to work, have taken pay cuts themselves or have lost their jobs because of the coronavirus lockdown.
Other mayors throughout the country have indicated they are also supportive of taking pay cuts, with Auckland Mayor Phil Goff saying on Wednesday he would also take a 20 per cent cut for six months.
In an emailed statement, Holdom said his decision was totally voluntary.
‘‘As the leader of our district it’s the right decision for me to make as we tackle the biggest financial crisis of my generation.’’
Holdom said there had been pressure from a ‘‘small but vocal group’’ in the community who were calling for councillors to also take pay cuts. But he said this was not necessary.
‘‘We now have a younger more diverse group with mortgages and young families earning around $50,000 a year doing fantastic work in our community and often quietly supporting many charity and volunteer organisations.
Nixon said whether his councillors followed in his footsteps was up to them, keeping in mind their remuneration was significantly smaller than their metro counterparts.
NPDC chief executive Craig Stevenson is also taking a cut from his salary, which was $354,671 in the last financial year, after already refusing a 2.9 per cent pay increase earlier in the year.
‘‘This is a personal decision I have made and is my way of showing empathy and support to those who are affected by the current crisis,’’ he said in the emailed statement.
South Taranaki District Council chief executive Waid Crockett will also take a voluntary 10 per cent pay cut and has asked for a wage freeze in the next financial year.
‘‘Our entire team at STDC are working extremely hard in challenging circumstances to keep our essential services running. Our next focus will be on working with businesses, iwi and other partners to develop meaningful measures that will support the recovery of our district,’’ he said.
Stratford District Council spokesperson said pay cuts had not yet been considered but will be discussed in due course.
The Taranaki Regional Council has also been approached for comment.