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MP Pay Madness, Taxpayers Scream "No More!"

Author: John Williamson 2004/09/26

List of pensions and severances collected by departing MPs after June 28, 2004 federal election
Pension calculations for retired MPs from 1968 to present

MP Pay Madness, Taxpayers Scream "No More!"Winnipeg: The Canadian Taxpayers Federation (CTF) responded today to news reports a federal pay commission is recommending judicial salaries increase by 10% this year, plus be awarded additional cost-of-living increases in each of the next three years. Under reforms passed by Parliament in 2001, the salary of federal parliamentarians is tied to judges, meaning these recommendations would see the pay of MPs and Senators go up.

"The process of setting the pay of parliamentarians is rotten," said CTF federal director John Williamson. "Under this recommendation, the pay raise will likely be more than 16%, over the next four years, when annual cost-of-living increases are included. There is no good reason for MP pay to be tied, in perpetuity, to the federal bench. Indeed, both Paul Martin and Stephen Harper acknowledged this in the recent campaign."

On June 18, 2004, it was reported the pay commission might recommend a 20% pay raise for judges. At the time - only 10 days before Canadians went to the polls - both the Liberal and Conservative leaders stated they were unconditionally opposed to hiking MP pay beyond a cost-of-living adjustment. They each vowed to change the legislation and untie the pay of lawmakers from that of judges to ensure salaries did not jump.

"A proposed 10% increase does not negate the bipartisan vow they made to taxpayers," said Williamson. "This raise is unacceptable to Canadians as truly accountable politicians would not fleece taxpayers simply because a commission suggests it. We expect MPs to move swiftly and change the law when Parliament returns next week."

MP Pay Facts:

  • Members of Parliament are currently paid $141,000 a year - an amount that places them in the top 2% of Canadian income earners.
  • Three years ago, federal politicians last voted themselves a 20% raise, increasing their pay from $109,500 to $131,400 (the prime minister's salary increased by 42%). And since then their salaries have increased by another 7.3%. This represents a 28.8% pay raise since 2000.
  • An additional 10% increase will see MP pay jump to $155,100 this year since it is retroactive to April 1 2004. The annual cost-of-living raises would see that figure rise to 165,000 by 2007. A 16.7% four-year pay boost. All said this represents an astounding 50% increase since 2000.


"Public service was never intended to jettison the 'peoples' servants' into the highest income echelons," concluded Williamson. "Another raise is out of line with both public opinion and the average yearly private sector pay increase of 2.0-to-2.5%. Besides what will our lawmakers say when public sector workers go on strike demanding higher pay MPs will lack the moral authority to hold the line on wages and that is more bad news for taxpayers."


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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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