I have today advised Parliament that the Liberal Members of State Parliament will not be accepting the proposed 2.5 per cent increase in MPs’ pay recently recommended by the Tasmanian Industrial Commission.
Under the Hodgman Liberal Government, jobs are being created, business confidence is through the roof, and wages are growing as a result.
As Members of Parliament, it is important we set the example and whilst pay increases for parliamentarians are set independently, concerns have been raised that the increase flagged is higher than the Government’s wages policy.
Liberal Members will not take the proposed 2.5 per cent increase and instead will limit our increase to 2 per cent, consistent with our public sector wages policy.
The Government’s wages policy of a six per cent pay increase over three years for public service employees is affordable, fair, and reasonable – it will ensure wages keep pace with inflation while also enabling us to employ even more frontline staff and deliver better frontline services.
The Government believes we have got the balance right and we will continue to negotiate in good faith within the parameters of our sensible wages policy. A pay-rise of just one percent extra across the public service would cost an additional $28 million to the Budget, including superannuation, each and every year and threaten our capacity to keep investing more in frontline staff and services.
I urge the public sector unions to follow our lead and accept our offer of two per cent.
Peter Gutwein, Treasurer