PM - MP remuneration ‘generally adequate’

The Prime Minister has said that he will push for an end to MPs’ international travel perk – and that Pansy Wong allowed herself to be “tripped up” by the rules.

He said it is National’s “strong view” that the international travel perk for MPs and their spouses, and ex-MPs and their spouses (a 25%-90% rebate depending on length of service) should be abolished.

Mr Key said that he understood the Speaker was “receptive” to the proposal – and that he did not foresee opposition from other parties.

Labour leader Phil Goff has already indicated his support.

The official line is that the international travel perk is deducted from the overall pool of money set aside for MPs’ remuneration – indicating that salary top-ups might be needed to compensate.

“Personally, I’m not supportive of a whopping great increase to MPs just because the travel perk that they usually enjoy has been eliminated,” Mr Key said.

A payrise of $9000 - the Remuneration Authority’s estimate of what the perk is worth - would be unacceptable.

In terms of the wider issue of remuneration, Mr Key said he was prepared to consider whether MPs’ remuneration and expenses should be totally determined by an independent body.

The Law Commission is due to release a report on the matter – “and that will provide the opportunity for further debate and consideration”.

One option would be to transfer full control to the existing independent Remuneration Authority.

Mr Key said that, for him personally, the crucial element is to recognise that the work and environment of an MP is “quite different to many other jobs”.

He gave his view that the current level of MP remuneration is generally adequate.

“There will be some people in the public who think we’re overcompensated but on the other side, as I’ve often said, if you pay peanuts, you get monkeys.”

Wong ‘tripped up’
Mr Key said that Ms Wong’s resignation would not be used as an excuse for a wider Cabinet reshuffle.

“I think my Ministers are doing a good job and, actually, for that fact, I think Pansy Wong did a very good job,” he said.

“She’s allowed herself to be tripped up by the rules and she’s played a very heavy price for that but as a Minister I think she did a good job.”

He brushed off questions relating to today’s press statement by Labour’s Pete Hodgson, who raised concerns that two of Sammy Wong’s companies, Sampan Enterprises and Shipley & Wong, are registered at the same address as Ms Wong’s publicly funded electorate office in Botany.

Mr Key pointed out that mailing addresses are not, of themselves, particularly significant, and stood by his advice to Ms Wong not to answer media questions until a report into her and her husband’s use of travel perks is completed.

Mr Key refused to speculate on Ms Wong’s continued future within Parliament.