Corby case shades $4380 pay rise announcement
Michael Harvey, Jason Frenkel and Ben Packham
28may05
MPs hit the jackpot
FEDERAL politicians will be $4380 a year richer after winning a generous pay rise.
MPs were quietly told of their pay packet boost yesterday while the nation's attention was fixed on the Schapelle Corby verdict. To complete a triple outrage, the 4.1 per cent salary increase was well above inflation and came just a day after unions claimed the Government's workplace package would slash wages for everyday workers.
The rise was approved by the Remuneration Tribunal and will take effect on July 1 -- the same day MPs are scheduled to get a $65-a-week tax cut.
The base rate annual salary for backbench MPs and senators will jump from $106,770 to $111,150.
As Prime Minister, John Howard will take home an extra $11,388 as his yearly pay climbs to $288,990.
An extra $8979 a year takes Deputy PM John Anderson's pay to $227,857 while Opposition Leader Kim Beazley will earn $205,627 (up $8103).
The Remuneration Tribunal reviews MPs' pay every year but the last increase was 4 per cent in 2003.
Union chiefs were outraged at the decision.
"It just underlines the hypocrisy of what's going on," ACTU secretary Greg Combet said.
"The lowest-paid workers have their wages held down, but it's OK for John Howard and his buddies to give themselves a big tax cut plus a big pay increase."
Australian Workers Union national secretary Bill Shorten described the rise as obscene.
But federal Workplace Relations Minister Kevin Andrews said it was in line with increases given to public servants. "The salaries of MPs are tied to a level within the public service, so if they have delivered a pay rise they have delivered a pay rise to the public service generally," Mr Andrews said.
He said the Remuneration Tribunal was similar to the Government's proposed Fair Pay Commission, which will determine minimum wages.
Mr Andrews confirmed the Fair Pay Commission was likely to revise the bottom pay rate annually.
Meanwhile, fallout from his workplace package dogged Mr Howard yesterday when he was forced to avoid a union protest near Geelong.
Mr Howard was due to sign a roads funding agreement with Premier Steve Bracks at the site of a new Geelong Bypass.
But he had to change venue when 150 unionists threatened to confront him.
Mr Howard said the reform plan was not an attack on wages, which had risen by 14 per cent in real terms under his Government.
He likened the union movement's reaction to the package to its response to the 1996 Workplace Relations Act.
"The same sort of scare tactics were invoked nine years ago . . . and they were proved wrong," Mr Howard said.
