2. CRAIG FOSS (National—Tukituki) Link to this
to the Minister of Finance
What previously agreed State sector pay increases is the Government having to fund as part of the Budget this year?
Hon BILL ENGLISH (Minister of Finance) Link to this
There are a number of previously negotiated pay contracts in place, which the Government will honour. Included in these contracts are those for 42,500 teachers and principals who received a 4 percent increase in July 2008, to be followed by another 4 percent in July 2009; 22,000 nurses and midwives who received another 4 percent increase in March 2009; 2,800 senior doctors who received 4.5 percent in June 2008 and will receive another 4.5 percent in June 2009; 2,400 junior doctors who will receive a 2 percent increase in July, on top of 8.68 percent in August 2008; and there are many more of them. The contracts are all legally binding agreements made by the previous Government, and they will be funded in this year’s Budget.
What has the Minister done to ensure future State Service pay agreements are fairer and more reasonable in the current economic environment?
We have indicated to the chief executives of Government departments that we expect State pay settlements to fall in line with what is happening in the rest of the economy, in particular in the private sector, where pay increases are quite low. We have also indicated to them that they will be funding remuneration increases from within the budgets they are given and that there will not be additional funds or ministerial funds to assist them. This will be the Government’s position for the foreseeable future.
Hon Trevor Mallard Link to this
Does the Minister of Finance understand that this policy means that after 1 July, school cleaners will be paid substantially more than support staff who work with kids with disabilities; if so, does he think that is fair?
Fairness will be a critical part of the Government’s approach to State sector remuneration. The member should wait and see the bargaining parameters for that pay round before he gets too worried about it.
How does the Minister’s approach to State Service pay contribute to the Government’s objective of providing better, smarter public services?
In a time of recession, more New Zealanders will need more front-line services. In that environment it will simply not be feasible to continue to provide significant pay increases of the order of 3 to 5 percent for public servants, without any benefits to productivity and more front-line service. Our focus will be on providing more public services.