NEWS | Wednesday, 03 December 2008

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Ministers deserve a pay rise, Labour whip

In the aftermath of a hush-hush pay rise to ministers during these times of credit-crunching and utility hikes, JAMES DEBONO asks unions and MPs for their reactions

Whips and one union official contacted by MaltaToday have expressed agreement with the pay rises effected by Lawrence Gonzi, who has given his ministers, parliamentary secretaries and himself a lavish pay rise of over 40% in a decision taken after March’s election.
The decision, unannounced by the government, will cost the country an extra €224,490 a year as all ministers and parliamentary secretaries will get a yearly increase of €14,966.
The ministers are getting the honorarium paid to Members of Parliament, which used to be forfeited when appointed to the Cabinet, and ‘only’ get a ministerial salary.
Tony Zarb, secretary-general of the General Workers Union, told MaltaToday the pay rise jars with the sacrifices many workers are having to make.
But the whip for the Labour Opposition, Joe Mizzi, has agreed with the increase, while Union Haddiema Maghqudin secretary-general Gejtu Vella slammed the secrecy with which the pay rise was introduced.
Before the decision, ministers were paid €33,495 yearly. Under the new decision, their wage will go up to €48,461.
The increase is expected to stir controversy at a time when the government is imposing tough measures in the face of economic austerity, contrasting with the meagre €4.08 cost of living adjustment given in the last budget.
Speaking in his personal capacity, Labour whip Joe Mizzi said he agreed in principle with the increase in ministers’ wages, but argued this should be accompanied by a greater sense of accountability on the part of Cabinet members.
He also questioned the timing of the measure, which coincides with increased hardships for workers.
Mizzi argued that ministers in developing countries have better salaries than their counterparts in Malta. “Personally I think that this decision was unavoidable because it does not make sense that a chairman earns more than the minister who appointed him.”
But Mizzi insisted that the pay rise is only justified if it is accompanied by accountability and a culture of resignations. Mizzi cited the hacking of thousands of government emails as a case where the Minister should have resigned. “For example on the MITTS case Minister Austin Gatt should have resigned.”
Mizzi also questioned the timing of the salary increase. “Although I firmly believe that ministers are simply being given what is due to them, I understand workers who lament that the ministers are getting a pay rise while their standard of living is deteriorating. The timing of this measure is not a good one.”
The most negative reaction to the ministers’ wage increase came from General Workers’ Union secretary-general Tony Zarb, who insisted that the 40% pay rise jars completely with the sacrifices workers are being expected to make. “Many workers are asking, why are ministers getting a pay rise while we are expected to make more sacrifices?”
And while defending the pay rise in principle, Union Haddiema Maghqudin secretary-general Gejtu Vella lashed out at the secrecy and lack of transparency which characterised this measure.
“The the lack of transparency and secrecy gave the impression that the government had something to hide and thus an essentially positive measure was shown in a bad light.”
Vella expressed agreement with the ministers’ pay rise, pointing out that chief executives of big companies have a much higher salary than government ministers.
He also said that ministers who were previously in private employment should not be expected to sacrifice their standard of living upon being appointed.
But he questioned the timing of the pay rise, arguing that the government was insensitive to the “bad climate” in the country.
On the other hand, Nationalist whip David Agius went one step forward, arguing that all MPs and not just ministers deserve a pay rise.
“The current remuneration given to ministers and MPs is a joke and ridicules the country’s institutions,” Agius told MaltaToday. “As things stand the Prime Minister earns less money than the chairmen he appoints.”
Agius also revealed that for the past years there were ongoing discussions with the Opposition to raise the salary of MPs. But according to Agius the Opposition is afraid of taking a decision.
Asked whether the government has chosen the wrong time to increase the salary of Ministers, Agius replied that this decision was long overdue. “If we do not take a decision on this we will never attract the best minds to parliament. If we want to have the best politicians we have to pay them. Otherwise they will prefer working in the private sector where they earn much more.”
On his part, PN secretary-general Paul Borg Olivier presented a legalistic defence for the pay rise, arguing that by denying ministers of their remuneration as MPs the government was effectively discriminating against them.
He pointed out that since ministers are also MPs, they perform two distinct constitutional functions. By virtue of being MPs, they serve the legislative arm of the state and by virtue of being ministers they serve the executive arm.
“Hence any remuneration for services rendered must also be seen in the light of this Constitutional distinction whereby no discrimination should be practiced between serving parliamentarians,” Borg Olivier said, adding that the pay rise simple removed “anomalies which discriminated members of the House.”
A spokesman for the prime minister last Sunday defended the decision, justifying the ministers’ role as members of parliament as a separate job. “The rationale is that Ministers have two functions, being those of a Minister and of an MP, and therefore carry out work pertaining to the two separate roles.”
Former ministers whom Gonzi sacked from his Cabinet as well as former Opposition leader Alfred Sant have also received together a total of €157,000 “to find a job”.

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