From Jim Cable of the Taxpayers Union
The average public sector CEO is paid $443,950. With poverty on the rise, and so many families struggling with the cost of living, this is eye watering.
Many of these CEOs make major decisions about services that impact millions of taxpayers’ lives. Shining a light on their salaries helps to promote accountability and transparency at the highest level.
While some of these salaries can be justified, others are totally out of whack. For example, many mid-ranking Rich Listers lead obscure agencies that most New Zealanders wouldn’t have heard of and which generate little value for taxpayers.
Who has heard of New Zealand Food Innovation? Its boss, Alexandra Allan, is paid a salary of $327,000.
Then there’s Victoria Crone of Callaghan Innovation: she takes home a cool half a million for running the corporate welfare agency. That’s even more than the Director-General of Health and is totally unjustified.
Our Executive Director, Jordan, joined Heather du-Plessis Allan to go over the list. The project was also discussed by The Panel on RNZ.
But what about local government?
The Rich List covers CEOs funded by the central government.
Until now, pay rates were only ever revealed as broad salary ‘bands’. We’ve been able to get the precise amounts to rank these individuals thanks to assistance from the Ombudsman and the State Services Commission.
We’re proud of our Rich List, but taxpayers deserve more. What about the small army of second tier staff earning more than $250,000? And what about local government?
Local councils have not been co-operative in releasing salary figures. Despite this, we are making progress, and with the Ombudsman’s help we plan to release a Local Government Rich List next year.
The Brish laboufr party tried to stop it (among other things) and look where that got them.
No the answer is in taxation. Say 45% tax over $100k, 50% 0ver $200K and 60% over $300K etc.
Days gone by the UK had super tax at 19 shillings and 6 pence in the pound for the very rich, which is when they all packed up and went overseas!
Higher top rates of tax would also sort out the pensions conundrum by taxing them out of existence while keeping away from an income tested regime.
The easier answer would be an indefinite freeze on these pay levels? The people in charge of setting them (Remuneration authority) seem to have the notion that they need to be more generous than equivalent private sector levels. No they don’t.