The Prime Minister of New Zealand, Jacinda Ardern has announced that she, her Ministers and 34 Heads of Government Departments are to take a 20 per cent pay cuts as a direct result of the Coronavirus outbreak.
She said the cut does not extend to other senior Public Servants or Crown Entities.
Some senior Government officials have their pay set by the Remuneration Authority, and Crown Entities by boards, so the Government is unable to direct them to take a cut.
However, some who are exempt, including the Mental Health Commissioner and Health and Disability Commissioner, have offered to give 20 per cent of their pay to charity as a workaround to the system.
Minister for State Services, Chris Hipkins said the Government wanted to see pay restraint applied more broadly for leaders in the public sector, “especially at this time when New Zealanders in the private sector are experiencing job loss and pay cuts”.
“The Government, as a priority, is working through a number of options on how to achieve this,” Mr Hipkins said.
This might involve changes to legislation which would allow Public Service leaders to take a pay cut.
State Services Commissioner, Peter Hughes (pictured) said achieving pay restraint in the public sector was complex and he was working with the Government on how it could be done.
The cuts so far announced will save roughly $NZ2.4 million ($A2.2 million) but Ms Ardern said it would not shift the fiscal position of the Government.
“For us, it’s about showing leadership,” Ms Ardern said.
Wellington, 19 April, 2020
