Frank Newman: Dear David

19 April 2020

David Seymour
Leader, ACT NZ
Parliament Buildings
Wellington

Dear David

Congratulations on drafting legislation to extend the Ministerial and public sector chief executive pay cuts announced by the Prime Minister to all MPs.  (See press release >>>)

I agree with your sentiments when you say, "New Zealanders are making extraordinary sacrifices right now. It is only fair that all MPs show solidarity and make them too.”

I am writing this open letter to you to request that the draft legislation be amended to include those who have their remuneration set by the Remuneration Authority and local government elected officials in particular.

I recently called for local authority mayors, chairmen and councillors follow the Prime Minister's lead and take a 20% cut in remuneration. Some have responded by saying they do not have the discretion to make that call because their remuneration levels are set by the Authority.

As you will know the Remuneration Authority was formerly the Higher Salaries Commission, which was first established in 1974 by the Wage Adjustment Regulations. You will also be aware the Authority sets the remuneration for:

•         local government elected officials
•         Judges
•         the Prime Minister
•         Members of Parliament
•         former Prime Ministers
•         the Governor-General
•         former Governors-General and their spouses
•         independent officers and boards

My request is simply that a clause be added to your draft legislation giving all of the above, the right to reduce their salaries should they wish to do so, for whatever duration they choose.

There are a number of advantages in doing so for the group generally, but more specifically for local government elected officials.

Firstly is removes the moral dilemma many mayors and local councils now find themselves in, that is; wanting to do the right thing but not being permitted to do so.

Secondly, it introduces flexibility. Permitting the discretion to reduce one's remuneration, allows each mayor and elected representative to take the reduction they consider to be morally fair, according to their means. Conceivably some who do not depend on their remuneration may elect to forgo 100% of their remuneration for a time, while others may feel justified in no reduction at all. I do not wish to judge and impose a blanket reduction on all. As an advocate of liberty and freedom, I am sure you will appreciate that nuance. At the end of the day, it is for each representative to do what they feel is right. The amendment I am proposing would permit them to do so.

I sincerely ask that your draft legislation be amended accordingly.

Regards

Frank Newman