Explanatory memorandum

This memorandum is not part of the determination, but is intended to indicate its general effect.

• 1 Remuneration

• 1.1 The Remuneration Authority (the Authority) has reviewed the remuneration of members of Parliament with effect from 1 July 2009. The Authority has decided that there should be no adjustment to members' remuneration this year.

• 1.2 In coming to this decision, the Authority applied the statutory criteria set out in the Remuneration Authority Act 1977. The decision was informed by the sharp reduction in the growth of State sector pay during 2009, and also acknowledges that those who are requesting or requiring others to reduce public expenditure and forgo salary increases should, in turn, be able to demonstrate leadership in that regard. It is the Authority's understanding that this was the rationale behind the 10 February 2009 resolution by members of Parliament in which they expressed their wish for no increase in their remuneration arising from the Authority's 2009 review.

• 1.3 The Authority's approach to this determination is broadly the same as that taken earlier this year in determining the remuneration of local government elected representatives. Where there was a valid reason put forward and unanimity (or near unanimity) among the elected representatives of a council for no increase, the Authority made no adjustment to remuneration for that council, provided this could be justified in terms of the Authority's statutory criteria.

• 1.4 The Authority will again review the remuneration of members of Parliament from 1 July 2010.

• 2 Allowance

• 2.1 The basic expenses allowance is intended to cover out-of-pocket expenses incurred in the pursuit of parliamentary business and may include—

  • (a) the entertainment of visitors, staff, constituents, and officials; and

  • (b) memberships, sponsorships, and fees; and

  • (c) koha; and

  • (d) donations and raffle tickets; and

  • (e) gifts and prizes; and

  • (f) flowers (including wreaths); and

  • (g) passport photos; and

  • (h) clothing and grooming (Prime Minister only); and

  • (i) briefcases and luggage; and

  • (j) meals.

• 2.2 The list in clause 2.1 is indicative, not definitive, and will be reviewed by the Authority from time to time in consultation with the Commissioner of Inland Revenue.

• 2.3 No adjustment has been made to the basic expenses allowance this year. The allowance is not part of remuneration, and therefore the setting of the allowance is not subject to the same statutory criteria as remuneration. However, the Authority considered that, consistent with the general requirement being set by the Government for fiscal constraint, and in the absence of any submission in favour of adjusting the allowance, it should remain at the same level for a further year.