Explanatory memorandum
This memorandum is not part of the determination, but is intended to indicate its general effect.
This determination comes into force on 24 September 2017.
Section 44(1) of the Members of Parliament (Remuneration and Services) Act 2013 (the Act) requires the Remuneration Authority (the Authority) to determine the entitlements, if any, to travel services within New Zealand of former Prime Ministers and their spouses or partners.
Travel services and the annuity provided to former Prime Ministers who had held the office of Prime Minister for not less than 2 years had their origin in the Royal Commissions on Parliamentary Salaries and Allowances in 1964 and 1973. The Commissions noted that the office of Prime Minister inevitably attracts obligations of a social nature that do not disappear with retirement, and involve personal expense.
The Authority considers that there continues to be an expectation that former Prime Ministers and their spouses or partners will play a part in public life as a result of the office they once held. In our view, it is fair both to the individuals concerned and to the taxpayer that costs directly related to that ongoing role are publicly met.
This determination links the provision of free scheduled air and other travel to the fulfilment of commitments related to the former Prime Minister’s role as Prime Minister (and, as the case may be, to commitments of the spouse or partner that arise from his or her former role). Likewise, the use of a chauffeur-driven car is not to be used for private business purposes or employment purposes but for fulfilling commitments to the role of former Prime Minister.
The provision of a self-drive car remains. Use of a car undoubtedly has a considerable personal benefit. On the other hand, a former Prime Minister is likely to have to travel to and from airports and around the country in the course of commitments arising from his or her former role. Using a self-drive car is likely to be more cost-effective than use of taxis or chauffeur-driven cars.
This determination applies only to former Prime Ministers who ceased to hold office on or after 21 September 2014, the date of commencement of the first determination under section 44 of the Act. The Act specifies (see section 69(1)(b) of the Act) that existing individual agreements on travel services for former Prime Ministers cannot be changed.
This determination is administered by the Department of Internal Affairs.