15 May 2011

MPs could get pay rise in weeks before election

12:11 pm on 15 May 2011

MPs could end up with a pay rise in the weeks leading up to the general election in November.

However, the Remuneration Authority has decided MPs should not at the moment get more pay to compensate for the loss of their international travel subsidy.

MPs did receive $2000 extra a year as reimbursement following a decision to scrap the taxpayer-funded travel discount, along with a 1.5% pay rise.

The Speaker of the House decided to do away with the subsidy last year after negative publicity over trips taken by MPs Rodney Hide, Chris Carter and Sir Roger Douglas.

The Remuneration Authority says after taking into account economic conditions and February's devastating earthquake in Christchurch, the decision on further compensation has been deferred.

The authority will consider MPs' pay again in July. Chairman John Errington says the determination is likely to be released in the two months before the election on 26 November, but that will not influence its decision.

Mr Errington says it is more likely than not that MPs will get some level of pay increase at that point.

The subsidy was worth about $3000 a year to MPs, he says.