John MacDonald: Now is not the time for 80% pay increases

I understand what the Prime Minister is saying about these pay increases for board members at Crown agencies, such as Health NZ and Kāinga Ora, but I’m not buying it.   

The top payment was $90,000. It’s now $160,000.  

Christopher Luxon says the Government needs to offer higher pay for these board roles so they can attract the best people. But tell that to the 28,000 people who have lost their jobs in the past year. 

Tell that to the hospital staff striking for more pay. Tell that to the hospital staff who have had a gutsful of staffing levels going south.  

Tell that to most people in New Zealand, and I think they’ll say that the Government couldn’t be more tone deaf if it tried.  

As Labour leader Chris Hipkins is saying, people are struggling to make ends meet and this just shows how out of touch the Government is.  

To be fair, the Prime Minister is correct when he says that they need to make these roles worth people’s while. Because, whether we like it or not, the Crown is competing with the private sector in trying to get the best people.  

But being correct doesn’t always make someone right, and someone needs to tell Christopher Luxon that people don’t care what he knows until we know that he cares.  

There he was again yesterday saying that he understands that people are doing it tough at the moment. He knows. But does he care?  

The way Public Service Minister Judith Collins puts it is that this is actually a strong move by the Government. Because past governments have been too chicken to pay its board members more, and she says we can’t expect these people to work for chickenfeed.  

I get what Judith Collins is saying too. And I know that, in the scheme of things, it’s not as if these increased payments to board members will amount to a massive amount of money.  

But for me it’s all about perception and the message it sends. 

Yes, people putting their hands up to sit on government boards want to be recognised for their time and effort. But consider how busy the Government has been telling local councils to cut their cloth. Consider how busy the Government’s been telling government departments to cut their cloth.   

Yes, people on government agency boards should be paid what they’re worth, but now is not the time for 80% pay increases. 

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Episode Transcript

Speaker 1 (00:06):
You're listening to the Canterbury Mornings podcast with John McDonald
from Newstalk ZB.

Speaker 2 (00:12):
Speaking of Christopher Luxen. I understand what the Prime Minister
is saying about these pay increases for board members at
crowned agencies such as Health ENDZ and Kayeing Order. I
understand it, but I'm not buying it. The top payment
was ninety thousand dollars, it's now one hundred and sixty
one thousand dollars, eighty percent increases, and the Prime Minister says, well,

(00:38):
the government needs to offer higher pay for these board
roles so they can attract the best people. But tell
that to the twenty eight thousand other people who've lost
their jobs in the past year. Tell that to the
hospital staff striking tomorrow for more pay. Tell that to
the hospital staff we were talking about yesterday. You know
they've had a gut sort of staffing levels going south,

(01:01):
trying to cover everything. Tell it to them. Tell that
to most people in New Zealand, and I think they'll
say that the government couldn't be more tone deaf if
it tried, as labeled a precipitency saying today people are
struggling to make ends meet and this just shows how
out of touch the government is. It makes all this

(01:22):
fuss about hauling fond terror over the coals, over the
price of blom and butter nonsense, makes token gestures like
banning payWave surcharges which we all know will just end
up with us paying more in some way, shape or form,
and then it goes and gives out these pay increases
to the people sitting around the board tables at its
entities and agencies and outfits like Health endzired and caying

(01:45):
order to be fair, because it want to be fair.
To be fair. The Prime Minister is correct when he
says that they need to make these roles worth people's while,
because whether we like it or not, the crowd is
competing with the private sector and trying to get the
best people. But being correct doesn't always make someone right,

(02:08):
or being correct doesn't always make something right. And someone
needs to tell Christoph Luxon that people don't care what
he knows until we know that he cares. And there
he was again yesterday saying, oh, yes, he understands that
people are doing tough at the moment, but does he
care he knows? Does he care? The way Public Service

(02:29):
Minister Judith the Collins put up when she was on
with Mike a couple of hours ago, is that this
is actually a strong move by the government. H it's
a strong move because past governments have been too chickened
to pary its board members more.

Speaker 3 (02:43):
Oh, there wasn't any increase. It's about the last decade,
apart from a ten percent increase the previous government to
in twenty two twenty tweeny two. And I think the
problem is that governments basically lost the bottle to actually
say we can't have our chair people of these organizations
that many cases are responsible for hundreds of millions or

(03:06):
thousands of millions of dollars of assets being the poorest
people paid people in the room. And because that's basically
what's been happening.

Speaker 2 (03:14):
She says, no longer can we expect these people to
work for Chicken feed.

Speaker 3 (03:18):
The people who really know how to do this job.
And I've done this job in the past before I
came into politics. It's hard. They're not going to do
it if they've a frankly insulted and they're told their
time stop worth anything.

Speaker 2 (03:30):
Now, look like the Prime Minister. I get what Judith
Collins are saying, my head gets it, but my heart
says something quite different. My heart says something complete, the
complete opposite. And I know that. Look in the scheme
of things, it's not as if these increased payments to
board members will amount to a massive amount of money
in the scheme of things. But for me, this is
all about perception and the message it sends. Yes, people

(03:54):
putting their hands up to sell on government, well, of
course they want to be recognized for their time and effort.
But consider how busy the government has been telling local councils,
for example, to cut their cloth. Consider how the government's
been telling government departments to cut their cloth. And in
my mind, the government needs to be consistent, has to
be consistent, and it needs to be holding tight on

(04:16):
pay increases for the people on its boards. Because if
you get yourself onto a board for a government entity,
an entity run by a government which has committed itself
to reducing costs and getting the finances in order and
getting the economy in shape, then I reckon you're going
to be prepared to suck it up for a bit,
aren't you surely? And if you're not, are you really

(04:40):
the type of person we want in charge of our
government agencies at board level. But what it comes down,
what it comes down to for me is this, Yes,
people on government agency boards should be paid what they're worth.
But here's the clincher. Now is not the time for
eighty percent pay increases.

Speaker 1 (04:59):
For more from Canterbory Mornings with John McDonald, listen live
to news talks It be christ Church from nine am weekdays.
He of the podcast on iHeartRadio