Why MPS deserve a pay rise, but not yet
It’s 3.55pm on a Monday afternoon. The Prime Minister has just finished leading the most important weekly meeting in the country — chairing Cabinet.
He’s making his way to his weekly post-cabinet press conference, where he’ll face the news-hungry band of two dozen Press Gallery reporters.
Over the course of 45 minutes, he’s quizzed on anything and everything and is held accountable for every word he utters.
After several more hours of meetings, he’s home by around midnight — and is up before 5am to prepare for morning media.
He speaks to RNZ, 1News, Newshub and, of course, ZB’S Mike Hosking; outlets with a collective audience of millions, all before 8am.
Two hours later on his way into National’s weekly caucus meeting, he’s confronted by the Press Gallery again, all armed with more questions.
Just a few hours after that, he fronts the Press Gallery yet again on his way into the debating chamber — the third time he’s faced them in less than 24 hours.
Moments later, he’s in the House facing questions from the leader of the Opposition.
Chris Luxon’s workload is mammoth. As was Chris Hipkins’, as was Dame Jacinda Ardern’s, as was Sir Bill English’s, as was Sir John Key’s, and on it goes.
In the 24 hours from 4pm on Monday, New Zealand’s Prime Minister will front more media than any Kiwi CEO will do in an entire year.
Fronting press is just one part of the Prime Minister’s job, and many would argue it’s part of why the Prime Minister’s salary is $470,000 a year (plus perks). That’s well above New Zealand’s average wage — but then again, it’s not an average job.
Compare what Luxon makes to the country’s top chief executives.
Ebos CEO John Cullity earns $8.4 million a year. Fonterra boss Miles Hurrell gets a cool $3.7m.
Greg Foran, the man who took over from Luxon at Air New Zealand, got a $3.1m pay packet last year.
The Herald’s list of high-paid CEOS ends with Genesis Energy’s Tracey Hickman, who comes in 54th place, earning $567,000 a year.
That means Luxon’s $470,000 wouldn’t have even cracked the top 50 — he would have been lucky to even crack the top 100.
Despite the fact an argument many CEOS tend to make when it comes to justifying their exorbitant pay package is media scrutiny, none of them touch the sides of what a Prime Minister does.
Another argument executives make is their level of responsibility within their organisation.
Just under 20,000 people work for Fonterra; almost 12,000 people are employed by Air NZ.
The Prime Minister’s public service has an army of 65,000.
What about hours worked?
Luxon’s on record as being up at 4am many mornings and working past midnight — it was the same with Ardern.
The pressures of decision-making?
Ardern shut down the country to keep out Covid. Helen Clark sent troops into a warzone.
On every conceivable level, the job of a Prime Minister is harder, has more pressure and comes with more scrutiny than that of any CEO in the country.
Despite this, Luxon’s paid 21 times less than Ebos’ John Cullity. It’s true, it’s not all about the money.
Being a Prime Minister is a patriotic and honorable thing — it’s why Prime Ministers receive the “honourable” honorific. Nevertheless, a Prime Minister’s pay packet should be at least north of $1m a year to reflect their workload and sacrifice.
And not just the Prime Minister; their ministers should also be paid much, much more.
Although not at the same level as the PM, ministers face intense media scrutiny and oversee ministries with tens of thousands of employees.
For their troubles, they’re paid a whisker under $300,000 a year (plus perks). In fact, in most cases, a minister will be paid less than the ministry CE’S that report to them.
Police Commissioner Andy Coster makes $670,000 a year; Police Minister Mark Mitchell makes $296,000 (plus perks).
Even a backbench MP with no leadership or Select Committee chairing responsibilities who earns $163,000 deserves a fatter pay.
Here, it’s less about the workload and more about the type of person we want to be MPS.
We want people at the top of their game coming into Parliament.
Of course, there’s one major barrier to upping pay for MPS, ministers and the Prime Minister — the public.
The Remuneration Authority is currently deciding if MPS should get a pay rise, and a decision will be made this month.
They haven’t had one in six years, and it’s understood there are a number of MPS who are not against the idea of a pay rise.
At the best of times, increasing MPS’ pay is contentious. But when the wider public sector is being forced to sack hundreds of people, the idea of politicians getting a pay rise would be politically unthinkable.
On the other hand, everyone knows who is attracted when the pay is peanuts.