How to set MP perks while rest struggle

Karen Chhour spent $16,686 in airport parking. Photo by Hagen Hopkins/Getty Images
Karen Chhour spent $16,686 in airport parking. Photo by Hagen Hopkins/Getty Images
Civis joins the outrage about MPs’ and ex-MPs’ entitlements.

Several egregious examples have been in the news in recent weeks. Is it any wonder the public holds politicians in low regard?

Even Labour leader Chris Hipkins has said some of the perks are “very, very hard to justify”. He says he is open to change, but would he really? He and others have had ample opportunity.

Meanwhile, Prime Minister Christopher Luxon has sought advice on former MPs’ entitlements.

Reports show $6 million has been spent over the past decade subsidising business-class travel for retired politicians who entered Parliament before 1999, and their spouses. Costs are rising and are budgeted to reach $1.6m this year. Don’t expect this issue to go anywhere.

And what about the $300,000 a year spent keeping chauffeur-driven Crown cars on standby for former prime ministers? Actual trips last year cost only $10,921. Jenny Shipley was the main user at close to $4000.

Former prime ministers also receive $64,000 a year for life.

Unsurprisingly, much attention has focused on the super superannuation subsidies. At $2.50 for every $1 an MP contributes, up to 20% of a backbencher’s base salary (soon to rise to $181,200), that amounts to more than $36,000 a year.

The money can go to private superannuation schemes controlled by MPs — unlike KiwiSaver — and has been used to buy houses, sometimes rented back to themselves as Wellington accommodation. The allowance for MPs from outside the capital is a further $36,000, and $50,000 for ministers.

All of this is galling when New Zealanders are being told there is no money to spare.

Making matters worse, Parliament deliberately excluded Parliamentary Services from the Official Information Act. Aside from overall totals, there is no visibility into the details of the $8.5m or so spent annually on transport and accommodation.

Ministerial Services, which covers Cabinet, is under the OIA. Children’s Minister Karen Chhour’s $16,686 in airport parking was revealed only because it was paid by ministerial credit card.

She might argue she saves money by using her own transport. But it is easy to clock up a $650 bill for a few days in a short-term airport carpark when someone else is paying.

Civis hopes politicians can be pressured into making changes, but experience offers little reason for optimism. The usual tactic is to shelter behind the Remuneration Authority, which “independently” sets salaries and allowances.

Its members come from the same professional-managerial class, with every incentive to bolster one another’s — and therefore their own — interests. They also operate under the Remuneration Authority Act, which prevents them from reducing the pay of any client group.

MPs should receive above-average pay for what is a demanding and important job. But, combined with generous allowances and expense opportunities, they risk losing touch with what life is like for most citizens.

While job security can be precarious, opportunities often open up for former MPs. Some earn far less than in their previous jobs, and some far more.

Sadly, too many come across as entitled and selfish, poor examples for the rest of us and poor stewards of our money.

Thanks to readers for their suggestions about Civis’ printer woes.

One was to use an online supplier of compatible cartridges at lower prices. That makes sense and is worth exploring, especially for those with the necessary know-how.

Nevertheless, error messages can still appear. Brother, the family’s printer brand, occasionally releases firmware updates that block third-party chips. Turning off automatic updates is recommended so compatible cartridges continue to work, though any warranty may be voided.

Another reader recommends an Epson printer with a large black tank and three smaller colour ones. Apart from the visible ink levels, it sounds similar to the family’s Brother printer.

civis@odt.co.nz