Massive pay rise for MPs, but travel perks on way out
December 1, 2011
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MPs to boost pay but lose perks
MPs expected to be better off in a more transparent system with fewer hidden perks, says political editor Michelle Grattan.
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FEDERAL MPs are set for a massive pay rise - taking a backbencher's salary close to $200,000 a year - but will lose some entitlements and have their future ''gold pass'' travel slashed.
The Remuneration Tribunal, which makes binding determinations on salaries for MPs and senior public servants, will announce the results of a rigorous review within weeks, with speculation that the rise for backbenchers could be $50,000. They are currently paid about $140,000.
Prime Minister Julia Gillard and frontbenchers on both sides, as well as controversial Speaker Peter Slipper, would be in line for even greater pay rises under the new arrangements. Ms Gillard, who earns about $366,000 now, could earn more than $450,000.
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Prime Minister Julia Gillard ... set for a bumper pay rise. Photo: Andrew Meares
But MPs would lose perks such as overseas study tours, which in some cases are more like holidays. They have included trips such as visiting Las Vegas and inspecting grape growing and wine production.
Future gold pass entitlements would be dramatically cut for those currently in Parliament, while those for former MPs would be reduced. People entering after the changes would not be eligible for the passes, eventually phasing out the scheme.
The Special Minister of State, Gary Gray, said this week the gold pass was an unjustifiable perk.
The price of democracy: A division in Federal Parliament. Photo: Andrew Meares
A crackdown on gold passes has bipartisan support. Opposition Leader Tony Abbott said yesterday the perk was brought in ''many, many years ago''.
He said: ''I think it's outlived its usefulness. I think it adds to the perception politicians are on easy street and I don't think it's very helpful.''
An earlier review of entitlements by a senior bureaucrat suggested legal problems in totally removing gold passes. In 2004, Parliament removed politicians' pension benefits but replaced them with the overseas study tour and ''severance'' travel after they left Parliament for those not eligible for gold passes. This can be for up to five years depending on length of service and provide up to 25 trips a year. The severance benefit is part of the tribunal review.
The purpose of the review has been to create greater transparency. The big pay rise will be controversial, but the scrapping of rorted allowances will be popular.
Read more:
http://www.smh.com.au/national/mass...-on-way-out-20111130-1o7d9.html#ixzz1fFryOWko
