Grey Power Federation Press Release Nov 21, 2011

Cash Payment Substitution to MPs for The Discredited MP Travel Perk Not Warranted

The payment of $5,000 a year to MP’s to compensate them for the loss of the much discredited overseas travel perk is just not right, and should be withdrawn, said Mr Roy Reid, President of Grey Power New Zealand.

“The announcement by the Remuneration Authority of a 1.5% increase in MP base salaries to $136,800 plus a further increase of $5,000 to $141,800 to compensate for the loss of the much abused travel perk is a disturbing ongoing example of the “sense of entitlement” that pervades upper level sections of New Zealand’s commercial and public sectors in a time when economic restraint is clearly called for.”

The salary increase of 1.5% is acceptable, if insensitive, at this time, but the $5,000 is not. The cancellation of the “under the radar’ Parliamentary personal perk was brought about by the public outrage at a number of serious abuses of the privilege by MPs and the perk was deemed no longer appropriate by the Speaker of the House and Parliament itself.

So called compensation for the loss of this privilege is not appropriate and the $5,000 increase should be withdrawn, or if this is not possible at this stage, be regarded as an advance against future base salary adjustments.

The original travel concession was established when Air New Zealand was a State owned company, and Parliamentary travel was basically restricted to using Air New Zealand where ever possible at a time when overseas travel was relatively uncommon.

This meant that one State department provided services to another, and the net cash cost to the State was minimal.

The purpose was to allow MPs to carry out personal trips related to their Parliamentary role and knowledge development in the pre computer and instant access of information days. It was not intended for holidays.

Neither of these situations continues to exist and the concession has quite rightly been cancelled. There is no need for any compensation.

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