EDMONTON: The Canadian Taxpayers Federation (CTF) today reiterated its support for MLAs receiving an annual pay increase based on the Statistics Canada average weekly earnings index. MLAs receive their annual raise today, in the range of one to three percent.

"This annual increase to the MLAs' salary is transparent, fair, and fully deserving of Albertans' support," stated CTF-Alberta director John Carpay.

"However, many aspects of MLA compensation do not yet conform to principles of simplicity, transparency, accountability and fairness," continued Carpay.

The Legislative Assembly's web site (www.assembly.ab.ca) has a main page for MLA remuneration, which does not mention the extravagant severance packages which MLAs voted themselves in 2001. Nor does the main page tell you that MLAs receive an "RSP allowance" of $9,000 per year in addition to their salary and their tax-free allowance.

"This failure to mention the MLAs' RSP allowance and large severance pay packages on the main web page under 'MLA remuneration' is a sad example of a lack of transparency," stated Carpay.

Alberta's MLAs can look forward to huge severance pay packages upon retirement or defeat. MLA severance pay is based on three months' salary for every year in office, calculated on the highest-earning years as premier, opposition leader, speaker, minister, or committee chair. Ralph Klein will get $670,000 if he retires in 2008, and many ministers will each receive over $600,000 if they retire in 2008. The 28 MLAs who retired or were defeated in the 2004 election will receive $6.1 million in severance pay.

In 1993, Ralph Klein's Tories abolished the MLA pension plan, and used this to beat the Liberals in the 1993 provincial election.

"Simplicity would mean paying Alberta MLAs one straight salary, as is done in B.C., Manitoba and Ontario. It's not clear to the average taxpayer how much MLAs really earn, because their remuneration comes from three different sources, and over $22,000 of that remuneration is tax-free," stated Carpay.

"Transparency would mean displaying the MLAs' RSP allowance and generous severance pay on the main web page, for all taxpayers to see."

"Accountability would mean public input and consultation prior to changing MLA compensation, and no changes going into effect until after the next provincial election."

"Fairness would mean bringing MLA severance packages into line with what other Albertans get. There is no job on earth which, when you quit or get fired, pays you three months' salary for every year on the job," concluded Carpay.