Parliamentary Salaries and Allowances Determination 2016

  • revoked
  • Parliamentary Salaries and Allowances Determination 2016: revoked (with effect on 1 July 2017 and after expiring on 30 June 2017), on 31 August 2017, by clause 7 of the Parliamentary Salaries and Allowances Determination 2017 (LI 2017/262).

Explanatory memorandum

This memorandum is not part of the determination, but is intended to indicate its general effect.
1

The Remuneration Authority Act 1977 requires the Remuneration Authority (the Authority) to set remuneration for members of Parliament by—

  • reference to the change in ordinary time weekly earnings for full-time equivalent (FTE) employees in the public sector as determined by the Quarterly Employment Survey (QES); and

  • 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.

The formula to be used is set out in section 18B of the Remuneration Authority Act 1977.

2

The change in the ordinary time weekly earnings for FTE employees in the public sector between 2015 and 2016 was 2.49%. This is calculated by comparing—

  • the average ordinary time weekly earnings for FTE employees in the public sector as determined by the QES for each of the 4 quarters of the period ending 30 June 2015, added together and divided by 4 ($1,359.81); and

  • the average ordinary time weekly earnings for FTE employees in the public sector as determined by the QES for each of the 4 quarters of the period ending 30 June 2016, added together and divided by 4 ($1,393.61).

3

The changes in amounts of personal benefit or potential personal benefit arising from any changes in entitlements as a result of a determination made by the Authority, directions issued by the Speaker, or a determination made by the Minister Responsible for Ministerial Services under the Members of Parliament (Remuneration and Services) Act 2013 have been assessed as follows:

(a)

Members’ and Executive New Zealand travel

There has been no change in entitlement and so there is nothing to take into account when setting salaries.

(b)

Executive self-drive cars

Included in this heading are self-drive cars for the Speaker, Deputy Speaker, and Leader of the Opposition.

There has been no change in entitlement and so there is nothing to take into account when setting salaries.

(c)

Chauffeur-driven cars

There has been no change in entitlement and so there is nothing to take into account when setting salaries.

(d)

Spouses’ and partners’ New Zealand travel

There has been no change in entitlement and so there is nothing to take into account when setting salaries.

(e)

Dependants’ New Zealand travel

There has been no change in entitlement and so there is nothing to take into account when setting salaries.

(f)

Members’ Wellington accommodation

There has been no change in entitlement and so there is nothing to take into account when setting salaries.

(g)

Members’ accommodation outside Wellington

There has been no change in entitlement and so there is nothing to take into account when setting salaries.

(h)

Home base security

There has been no change in entitlement and so there is nothing to take into account when setting salaries.

(i)

Information and communications technology

There has been no change in entitlement and so there is nothing to take into account when setting salaries.

4

The change in QES has been applied according to the formula in the Remuneration Authority Act 1977. This results in salary increases of 2.49%.

5

Since 2002, members have been entitled to a tax-free allowance intended to cover out-of-pocket expenses incurred in the pursuit of parliamentary business, which 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 (excluding wreaths for public commemorative events); and

(g)

passport photos; and

(h)

briefcases and luggage; and

(i)

meals.

This allowance has, as in previous years, been increased by the New Zealand Consumers Price Index movement to 30 June 2016 (0.4%).

6

This determination is effective from 1 July 2016 and expires on 30 June 2017. The determination could not be finalised earlier because of the preparatory work that the Authority was required to undertake before making the determination.