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Don't mess with a good thing

Author: Adrienne Batra 2004/02/25
Late last year, Mr. Earl Backman was appointed Manitoba's Commissioner to study MLA pay, allowances and retirement benefits. He will be making recommendations to the legislature in the next few months as to whether or not Manitoba MLAs should receive a pay increase - not a simple task since determining pay for elected officials is something of a thorny issue. But the question that must be asked is why is this suddenly an issue

Unlike Parliamentarians elsewhere in Canada, Manitoba's Members of the Legislative Assembly (MLA) have a reasonably simple and transparent compensation regime. Manitoba's MLAs do not receive a tax-free allowance and do not have a defined benefit pension plan. In these respects, Manitoba has led the country in MLA compensation. With the Fox-Decent Commission in 1995, Manitoba wrote the book on simple, transparent, accountable and fair compensation. In fact, other provinces have followed Manitoba's lead when determining compensation for elected officials.

Since the Fox-Decent Commission of 1995, there have been many reports across Canada dealing with the question of Legislative Member compensation. Some common themes have emerged from these reports:

  • Provincial Legislatures are a valuable institution that must function effectively;
  • the work done by an MLA is roughly comparable to that done by middle-upper level professionals;
  • MLAs should not become wealthy or profit excessively as a result of their public service, nor should MLAs see their pay increase when other Canadians are suffering financial hardship and regardless of any determination of what constitutes fair compensation for the value of the work they do; and
  • MLAs' remuneration must be consistent with public expectations.

By many of these standards, Manitoba's MLA compensation package is already consistent with these principles. In lieu of a pension, Manitoba's MLA are eligible for a generous RRSP contribution that matches MLA contributions dollar for dollar up to 7% of all their total pay for the year.

If changes are required, they should only be done to strengthen what is already in place. For example at the end of each fiscal year, MLA expenses should be published in the following areas: advertising, office maintenance, travel, entertainment and total spending. A similar accounting should be published for all Ministerial Offices as well.

With regards to MLA remuneration, provide MLAs with an annual pay increase every year on April 1, and tie it to any increase in the cost of living using either the Consumer Price Index from the previous calendar year, or a provincial weekly earnings average composite. The second option is most like a performance measurement for legislators. The rate can go up or down depending on the health of the economy, and it is a reflection of the economic conditions experienced by the people paying their salaries.

Currently, MLAs earn $65,535 a year (tack on an additional $29,000 for cabinet ministers). That puts them in the top 7.2% percent of all income earners in Manitoba. There is no doubt that citizens desire and deserve competent and talented women and men in elected public service. However, there is no evidence to support the argument that better pay and compensation will attract more qualified individuals to public life. While a competitive wage should be paid to our MLAs, one sincerely hopes that an over-riding sense of civic virtue and duty are the first and primary motives for Manitobans who want to serve as MLA.

CORRECTION
It has been brought to our attention that Cormer Group Industries received a $2.75 million loan from Manitoba Industrial Opportunities Program, which must be repaid with interest. In a previous column dated March 19, 2003 we incorrectly described this $2.75 million loan as a "$12 million handout". We apologize for this error.

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