Supplementary Order Paper No 59

No 59

House of Representatives

Supplementary Order Paper

Tuesday, 17 March 2015

Remuneration Authority (Members of Parliament Remuneration) Amendment Bill


Proposed amendment

Metiria Turei, in Committee, to move the following amendment:

Clause 7

In clause 7, replace new section 18B (page 3, line 14 to page 4, line 35) with:

18B Fixing salaries of members of Parliament
  • (1) For the purpose of any determination under section 12(1)(a)(i), the Authority must fix the salaries of members of Parliament in accordance with this section.

    (2) A salary rate for a 12-month period from 1 July to 30 June (the relevant 12-month period) must be fixed so that—

    Sr + Sur = (Sp + Sup) × (a ÷ b) – Pr

    where—

    Sr
    is the salary rate for the relevant 12-month period
    Sur
    is the amount of the superannuation subsidy that will be payable (in accordance with the determination made under section 12(1)(b) and (ba)) in the relevant 12-month period
    Sp
    is the salary rate for the 12-month period immediately before the relevant 12-month period (the previous 12-month period)
    Sup
    is the amount of the superannuation subsidy that was payable (in accordance with the determination made under section 12(1)(b) and (ba)) in the previous 12-month period
    a
    is the change in salary and wage rates for the public service as determined by the Labour Market Statistics for each of the 4 quarters of the previous 12-month period, added together and divided by 4
    b
    is the change in salary and wage rates for the public service as determined by the Labour Market Statistics for each of the 4 quarters of the 12-month period immediately before the 12-month period referred to in item a, added together and divided by 4
    Pr
    is the amount of any change in the personal benefit or potential personal benefit that the Authority is required to take into account under section 16(2)(b) of the Members of Parliament (Remuneration and Services) Act 2013.

    (3) In subsection (2), Labour Market Statistics means the Labour Market Statistics published by Statistics New Zealand or, if that survey ceases to be published, any measure certified by the Government Statistician as being equivalent to that survey.

    (4) If the Authority is fixing a salary rate for the first time for a position for which there is no previous determination, the Authority must fix the rate consistently with a comparable position or positions for members of Parliament.


Explanatory note

This Supplementary Order Paper amends clause 7, new section 18B of the Remuneration Authority (Members of Parliament Remuneration) Amendment Bill to change the sole criterion for the Remuneration Authority to consider when reviewing the total remuneration of members of Parliament. The proposed new criterion is the change in salary and wage rates for the public service as determined by the Labour Market Statistics published by Statistics New Zealand. The Labour Market Statistics is a more accurate measure of the actual rate of increase than the Quarterly Employment Survey because it measures what people are actually paid by employers rather than income.