Thousands added to public service bosses’ pay packets
Wednesday, 16 October 2024
While the Government snipped and slashed public service spending, with job cuts rippling through agencies to save every penny, the pay packet of most public sector bosses was boosted by thousands.
Public Service Commission workforce data showed an average pay increase of 1.5% on average to the year June 30. For some, that meant tens of thousands of dollars.
Public service agencies had been tasked to scrimp and save, going line by line, cutting everything from plunger coffee, to the size of its workforce – but even agencies that had come under fire saw a nod to the wallet.
Just last week it was reported Health NZ’s forecast deficit went from $1.4 billion to $1.76b, while a commissioner replaced the board in July, “in response to serious concerns around oversight, overspend and a significant deterioration in financial outlook”, Health Minister Shane Reti said at the time.
Meanwhile, chief executive (CE) Margie Apa’s pay went from $864,000 in 2022/23 to $895,000 in 2023/24 – a $31,000 boost.
Iona Holsted, who ended her tenure as Ministry of Education CE last week, had a $27,000 rise up to $604,000 – while the department planned to cut more than 500 roles earlier this year and the Education Minister Erica Stanford described issues with school buildings as 'bordering on crisis' in February.
Other agencies with notable rises were:
Department of Internal Affairs boss Paul James, up $40,000 to $578,000;
The Ministry of Business, Innovation and Enterprise’s Carolyn Tremain, up $35,000 to $614,000
Ray Smith of the Ministry for Primary Industries, up $36,000 to $633,000.
Debbie Power of the Ministry of Social Development, up $49,000 to $618,000.
Corrections’ boss Jeremy Lightfoot rose $29,000, to $504,000
Penny Nelson of the Department of Conservation, up $59,000 - to $495,000.
The Civil Aviation Authority’s Keith Manch, up $75,000 to $510,000, which included a job resizing decision.
Disestablished roles within the Water reform programme’s National Transition Unit cost millions. The payments for the four leadership positions cost $2.6 million.
The payments in the 2023/24 year, which were mostly from July 1, 2023, to December, 2023, also included redundancy payment for some.
Green Party public service spokesperson Francisco Hernandez, in regards to the pay rises, said that it was concerning that the Minister [of Public Service Nicola Willis] ”is not only comfortable with this, but she is looking to increase the pay for these already well remunerated … with her plan to progress ‘performance pay’ for public sector CEOs”.
“New Zealanders deserve consistent and robust investment in our public service, not just more money accumulating to the wealthy bosses at the top.”
Willis asked if, in a time the government called for financial restraint in the Public Service, she was comfortable with the pay packets of almost all public service bosses going up, then directed questions about chief executives’ pay to the Public Services Commissioner.
“In New Zealand, politicians don’t get to decide how much chief executives get paid and I think that is a good thing.”
The Public Service Commission said in a statement that the approach to setting chief executive remuneration balanced two things, the need to maintain public trust and confidence in the public sector, and the need to attract and retain chief executives who were motivated by a spirit of service.
“There are a range of reasons why public sector remuneration, particularly at the senior executive level, is and needs to be lower than the private sector.”
*This story originally originally had Civil Aviation Authority’s Keith Manch as Kevin. This has been amended.