Greens maintain support for MP pay freeze

The Tasmanian Greens today called on the Labor and Liberal parties and all independents Upper House to commit to working constructively to find a solution to the current impasse over MPs’ pay.

Greens Leader Nick McKim MP said it was important to find a solution that did not result in a massive windfall pay increase for politicians, which would be likely if the matter was referred to an independent arbiter such as the Industrial Commission.

”The Upper House is insisting on a process may award a significant pay rise to politicians which the Greens will not support under any circumstances while people in the community are doing it so tough.”

“Our position remains that MPs’ pay should be frozen until at least the next election, but we were prepared to accept the 2% increase supported by Labor and Liberal as a compromise.”

“What’s important here is that politicians show the same kind of restraint that we are asking public servants to show, and on that basis the 2% is the maximum pay rise the Greens are prepared to accept.”

“We are urging all MPs in both Houses to work constructively to break this impasse, because failure to find a solution would could mean a massive windfall pay increase for politicians, which is unacceptable while so many people are doing it tough in the community,” Mr McKim said.

• EXTRA SITTING DAYS BEFORE JULY 1ST A SOLUTION TO MPs PAY RISE

Tim Morris MP
Deputy Greens Leader
Monday May 28, 2012

In Budget Estimates today, the Greens proposed extending the number of Parliament’s sitting days to make time for the deadlock with the Legislative Council to be resolved and the MPs’ full pay rise be prevented.

Deputy Leader Tim Morris MP said that the Upper House supports referring the issue to Tasmania’s Industrial Commission, which is likely to recommend a full pay rise, but that most Lower House MPs oppose a pay rise.

“A workable solution would be for additional sitting days to ensure this issue is rapidly fixed before the end of the financial year on July 1st.”

“The Greens’ position is crystal clear: We believe there should be a pay freeze for MPs but, as a minimum, a cap of 2% is preferable to the entire increase.”

“The current deadlock between the Upper House, and Lower House which has voted in support of the 2% cap, could mean the entire increase could flow automatically to State MPs. This would be unacceptable to the Greens.”

“Given the economic climate, MPs cannot expect others to tighten their belts if they are not prepared to do the same.”

“A possible solution to this impasse would be for Parliament’s sitting days to be extended so that MPs can be resolved the issue before the end of the financial year.”

“It would be a disaster for the public standing of Parliament if this pay rise proceeds.”

“To ensure it does not, the Greens believe a workable way forward would be for Parliament to come together and sit for a few more days to show that it is serious about putting money where its mouth is,” said Mr Morris.

• LARA WRONG ON TAX EFFICIENCY
Deliberately Inefficient Tax System Unsustainable

Tim Morris MP
Deputy Greens Leader
Monday May 28, 2012

In Budget Estimates today, the Greens expressed surprise at the admission by Treasurer Lara Giddings MP that she was deliberately keeping the State’s tax system inefficient.
Greens Treasury spokesperson Tim Morris MP said an efficient tax system was self-evidently in the State’s long-term interest.

“Ms Giddings argued that her policy of deliberately keeping the tax system inefficient to attract businesses and keep down cost of living pressures was a wrong-headed approach for the right reasons,” said Mr Morris.

“Ms Giddings is obviously not an economist, which is why in April the Greens called for Treasury to be charged with producing a White Paper review of our tax system, including recommended reforms, as a matter of urgency.”

“An efficient tax system works best, is fairest and ultimately saves valuable taxpayer dollars. It would also hopefully mean vulnerable people pay the least.”

“But trying to do the right thing by deliberately keeping the state’s tax system inefficient is completely wrongheaded. It’s unsustainable, irresponsible and fiscally unjustifiable.”

“Let’s not forget that, before Labor and the Liberals walked away from the tripartite Tax Review Panel, both parties must have recognised the need for tax reform. Unlike the other two, the Greens still do and aren’t ducking the issue.”

“A real-world way to capitalise on the work already undertaken by the Review Panel would be to direct the Treasury to take up where they left off after Labor and the Liberals walked away.”

“Let’s not forget either that Tasmania’s business community and the TCCI are both also calling for state-wide tax reform. Such a move could help end our Budget deficit.”

“Given the Treasurer’s passion for economic responsibility, the Greens call on her again to do the right thing and direct Treasury to create a White Paper review of the State’s taxation system,” said Mr Morris.