Remuneration Authority spin shows why taxpayers need a seat at the table

The Taxpayers’ Union says comments from the Chair of the Remuneration Authority on Newstalk ZB last night attempting to downplay massive council pay increases only reinforce the need for a taxpayer representative on the out-of-touch Remuneration Authority.

Applications for a vacant board position close tonight, and the Union is urging the Government to appoint a representative on the side of those who are paying the bills.

Taxpayers’ Union spokesperson Tory Relf said:

“The Remuneration Authority sets the overall remuneration pool per council – that’s the total amount councillors in each authority are paid each year – and then councils divvy it up amongst themselves.”

“The Authority seems to be hanging its hat on the fact councillors can decide how to allocate the pool across roles, but that doesn’t change the bottom line: The pool went up, the average pay went up, and ratepayers are left footing the bill.”

“In Western Bay of Plenty, the governance pool jumped and, after councillor numbers dropped from 11 to 9, the result was an average pay increase of 56.86 percent. But this isn’t a one-off: last year the Authority pushed through a 9.81 percent increase nationwide, more than three times inflation.”

“What we’re seeing is a complete breakdown in accountability. Councillors can claim ‘the Remuneration Authority set the pool’, while the Authority shrugs and says councils choose how to split it. Meanwhile, ratepayers still lose.”

“As the Minister responsible for the Remuneration Authority, Brooke van Velden oversees this appointment. As a member of the ACT Party - the Association of Consumers and Taxpayers - she should back that up by appointing an independent taxpayer advocate.”

“If the Authority is going to keep setting pay packets funded by ratepayers and taxpayers, then ratepayers and taxpayers deserve direct representation on that board. We’ll be encouraging qualified taxpayer advocates to apply before the deadline.”

The full Council Pay Rise Dashboard is available at https://www.taxpayers.org.nz/pay_rise_dashboard