Goff: Labour would cap public service salaries

Sunday Star-Times

SITTING TIGHT: In his state of the nation speech Labour Leader Phil Goff called for a cap on public service chief executive wages.

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Labour leader Phil Goff has called for a cap on public service chief executive wages so they do not get paid more than the prime minister, who is currently on $393,000 a year.

He also attacked "bludgers" who evade the top tax rate or rip off ACC and welfare.

It is estimated 16 state sector bosses, including Treasury Secretary John Whitehead and the heads of health and social welfare, currently earn more than Prime Minister John Key.

In his state of the nation speech in Hamilton today, entitled "The many not the few", Mr Goff told the invited audience that he would not cut existing salaries but would impose the cap on new salaries.

"Labour says the entire workforce is deserving - not just CEOs," he said.

"The Government can't keep rewarding the elites and the privileged at the same time as hundreds of thousands of New Zealanders are suffering a drop in real income."

Mr Goff said even the Conservatives in Britain were proposing the same sort of cap.

He also promised a crack down on what he called "bludgers" who evade the top rate of tax as well as those at the other end "who dishonestly rip off the community for which they are not entitled; who think the rest of us own them a living, while they make no effort to help themselves.

"We need to crack down on people whose behaviour will be used as an excuse to cut back on social services."

- © Fairfax NZ News