One in four council staff earn more than $100k
Councillors have promised to scrutinise staff pay after it emerged more than a quarter of Christchurch City Council employees earn over $100,000 a year – leading to accusations that bureaucrats are fleecing ratepayers.
The council’s payroll bill has spiralled in recent years, jumping from less than 25 per cent of operating costs in 2013 to almost 40 per cent at the end of the last financial year. The number with salaries above $100,000 has more than doubled, up from 248 seven years ago to 554 in 2020, a rise from 12.8 per cent of the total staff to 25.5 per cent.
Pay rates are negotiated at the start of contracts and are based on comparative jobs in similar organisations, a council spokeswoman said.
But campaign group the Taxpayers’ Union said the ‘‘bloated’’ salaries were a sign of ratepayers’ money being used to line staff pockets.
‘‘Year after year, council politicians tell ratepayers they need to hike rates to build and maintain infrastructure,’’ spokeswoman Islay Aitchison said.
‘‘But capital expenses, like roads and pipes, aren’t where the money’s going – it’s headed straight into the back pockets of an ever-growing payroll and bureaucracy.’’
A major restructure in 2015 and the impact of the February 2011 earthquake both affected staff levels, the council said, with contractors brought in-house to save money, more people employed in consenting during the post-quake building boom and others needed for anchor projects and new facilities such as Taiora QEII, Tu¯ ranga, and the Sumner library.
Some employed in quake recovery organisations were taken on by the council, while employees seconded to government agencies also returned.
Councils around the country are searching for ways to tighten their belts ready for a postcoronavirus financial recovery, with Christchurch chief executive Dawn Baxendale saying there are ‘‘no no-go areas’’ as she looks for savings.
‘‘We have a very complex financial conundrum and we need to find savings right across the organisation.’’
With pay costing $193.5 million and the number of staff swelling 15 per cent between 2013 and 2019 compared to Christchurch’s population rising by eight per cent in that time, some councillors believe it is time to reexamine the books.
‘‘I think over time it’s clear there has definitely been wider parameters set annually in the budget by the elected council; this has created an environment where costs have increased,’’ deputy finance committee chairman and Waimairi councillor Sam MacDonald said.
‘‘New councillors have brought a healthier tension to the annual budget debate, and it’s fair to say previous assumptions will be challenged to ensure ratepayers get value for money.’’
Central ward councillor Jake McLellan wants the authority to have a ratio between its highest and lowest paid staff, similar to other public institutions around the world.
‘‘I believe the chief executive gets paid 11 times more than the lowest earners at council [Baxendale, on $495,000, is taking a 10 per cent pay cut next year].
‘‘Ideally this would move to a figure more like eight times (or less) over a period of time. This is something I’m keen to look at into the future.
‘‘It’s really important we don’t have lots of staff who are out of touch with average wage earners.
‘‘There’s a public service element to leadership working at council. At the same time there’s lots of hard-working people at council who don’t earn that much — libraries’ staff and those working to fix our roading infrastructure.’’