Liberal lemmings (aka Liberal MPs) voted en masse for a 20% pay hike (retroactive to January 1st) along with a consequent 42% top-up to their pension plan. Joining them in this bank balance boosting exercise were Bloc Quebecois MPs and a scattering of Canadian Alliance and PC MPs. Many Canadians were incensed at the raises, but they were equally angered by the speed in which this process was carried out. The Lumley commission on compensation tabled its report on May 29th.

To be fair, it contained some positive recommendations, including the abolition of tax free-allowances and simplification of the layering of allowances for various House officer (Cabinet Minister, Party Whip, etc.) positions. But the report also recommended an retroactive 20% pay increase (from $109,500 when their tax-free potions is factored in to $131,400) back to April 1st and a lowering of the MP pension plan accrual rate from 4% to 2.5% (a good start, but not low enough).

While Mr. Lumley was holding his news conference, across the street on Parliament Hill, it appears as though Government House Leader Don Boudria almost immediately sent his minions to work on drafting what would become known has Bill C-28, the pay hike bill.

Not content with Mr. Lumley's plan for a pay hike, good old Don B. (once a rat-packer who preached respect for taxpayer dollars and parliamentary process, but now an imperious and disconnected Cabinet Minister) along with the PM, sweetened the package further. The pension accrual rate was bumped to 3% and the retroactivity on the pay hike was pushed back to Janaury 1st.

These changes bumped MPs pay $7,000 higher for 2001 and ensured that base pension annual payouts to MPs would jump by $4,000 above Mr. Lumley's plan and by $9,000 above the current plan. On the pension figure, Mr. Boudria was quick to dismiss this with his usual half truths by noting that MPs will pay more into their pension (7% of their new $131,400 salary as opposed to 9% of the old $69,100 figure).
Fair enough, so MPs contribute $3,000 more a year. But for a two term MP, this means (keeping all dollars constant) they will pay in $24,000 more for a potential 20-year windfall of $180,000: not a bad deal.

And the PMs pension jumps from its current $101,000 to $139,000. But wait, this figure could climb as high as $185,000 if he sticks around for another five years. Yikes!

On process, all the bluster and rage from opposition MPs, was for the most part, utter hypocrisy. They couldn't find 25 MPs on Monday, June 8th, to stand against Minister Boudria's motion to fastrack the MP pay bill. Out of 91 CA, NDP and PC MPs, they couldn't find 25 to stand against the pay hike bill, a mere 20 minutes after the Commons was packed for question period.

So it sailed through first reading on the 8th, 2nd reading over the next two days (with no public input and little debate), and flew through third reading and a vote (211 to 52, with 38 MPs absent or not voting) on June 7th. Things moved so quickly, most MPs didn't even miss dinner reservations around 6pm. This whole fiasco has belittled the institution of parliament. In post vote comments, Mr. Boudria had the temerity to call the pay hike vote "courageous." Cowardly and contemptuous would be a more apt description of this odious spectacle.


Tax Fact:
The Washington Post's asked readers to take any word from the dictionary, alter it by adding, subtracting, or changing one letter, and supplying a new definition. Here is one of the winners -
Intaxication: Euphoria at getting a tax refund, which lasts until you realize it was your money to start with.