State MPs on the Central Coast, along with all NSW MPs and senior government executives, will see their wages frozen for two years as the State Government moves to fulfill a major election commitment.
The NSW Cabinet has approved two bills to freeze the pays for two years from July 1 this year.
Member for Gosford Liesl Tesch said the Government had acted quickly to prioritise investment into essential services such as schools and hospitals over the “ballooning wages” of government executives.
“Our front-line workers have suffered under wage caps while delivering the critical services that run our state and the Government has clearly shown its investment priorities,” she said.
Member for The Entrance David Mehan said the Labor Government is looking for all the savings it can make to ensure it has more to invest in frontline public servants.
Member for Wyong and Minister for the Central Coast David Harris said the decision was a “tough one” as the Government prioritised what is important.
“The Government is focussed on increasing the pay for our frontline workers and that require fiscal restraint in other areas,” he said.
NSW Treasury estimates the move will save taxpayers around $260M over four years – funds that can instead be invested into essential services like schools and hospitals.
Senior executives covered by the freeze include departmental secretaries, agency chief executive officers, executive office holders, commissioners and judicial officers.
The senior executive and politician pay freeze was supported by both major parties ahead of the March 2023 state election.
One bill will enforce the pay freeze on members of the Legislative Assembly and Legislative Council via the Parliamentary Remuneration Tribunal.
The Parliamentary Remuneration Amendment Bill 2023 will amend the Parliamentary Remuneration Act 1989 and effectively freeze the basic salary of all parliamentarians – regardless of their political party – for two years.
The second bill will enact the senior executive freeze via the Statutory and Other Offices Remuneration Tribunal.
The Statutory and Other Offices Remuneration Amendment Bill 2023 will amend the Statutory and Other Offices Remuneration Act 1975, and related regulations, to implement the pay freeze for senior executives.
The Statutory and Other Officers Remuneration Tribunal determines the remuneration for senior public servants as well as judicial and non-judicial office holders.
The Government’s bill will prevent the tribunal from awarding any increase in remuneration for two financial years.
Premier Chris Minns said the new Government had inherited a “challenging budget”.
“But budgets are about priorities,” he said.
“Our priority is rebuilding our essential services and investing in frontline workers.”
Special Minister of State John Graham said the bills were about capping the top end of the service to reinvest in front-line workers.
“This senior executive and politician wage cap will help us build capacity in the public sector and stop essential workers leaving the state,” he said.
“We value our public service leaders, and the work they do for our government and our state.
“This is a tough decision as we prioritise what is important.
“Twelve years of the Coalition created a ballooning executive wage bill yet a shortage of essential workers.
“The NSW Government offers some of the best pay for senior executives across the public sector nationally.
“Even with the wage freeze, NSW will continue to attract the best public service talent.”
Terry Collins