Top politicians should take a pay cut - survey

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New Zealand's top politicians should have their pay cut by more than $100,000 each, a survey suggests.

The Massey University survey of attitudes to social inequality found cabinet ministers were thought to be paid about $175,000 a year but deserved much less - about $135,000.

Half the 935 people who responded thought senior politicians should earn $175,000 or less, and half thought they should earn $135,000 or more. The actual pay of a cabinet minister is about $245,000.

Professor Phil Gendall, head of the research team, said respondents in households earning less than $40,000 thought a cabinet minister earned $160,000 but deserved $100,000, while those in households earning $100,000 or more thought ministers earned $170,000 but deserved $150,000.

"The overall story is the same, even though the specific figures differ," he told NZPA.

Different questions showed that 'most' (62 percent) respondents believed income differences were too large and that lower income earners were perceived as underpaid while those on high incomes were seen as considerably overpaid.

"People accept that different occupations deserve different levels of remuneration, but the gap between high-paid and low-paid occupations is considered too large and increasing," said Prof Gendall. But there was also a strong belief that competence, effort and responsibility should be reflected in how much people earned.

Fifty-five percent of people thought New Zealand ought to be a society with most people in the middle, while a further 25 percent thought New Zealand society should have many people near the top and only a few near the bottom. But, 56 percent said New Zealand society was actually like a pyramid, with a small elite at the top and more people in the middle and the bottom.

Half of the survey respondents said they, personally, were paid less than they deserved, said Prof Gendall.

Half the New Zealanders surveyed were in favour of people on high incomes paying a larger share of their income in tax. That percentage has fallen over the past two decades, from 70 percent who held that view when asked in 1992 and 60 percent in 1999.

One reason for this could be the fact that more New Zealanders were now in higher tax brackets, said Prof Gendall.

In general, lower income earners were seen as underpaid and higher income earners considerably overpaid. Participants in the survey thought that unskilled factory workers and shop assistants earned about $30,000 a year, while the income they deserved was about $35,000.

At the other end of the scale, company chairman were believed to earn a median of $250,000 a year, $100,000 more than they deserved. The perceived earnings of a company chairman were about eight times that of an unskilled factory worker, but the 'deserved' difference was about four times.

As with the politicians, each person surveyed gave the figure they thought was appropriate, and the median figures showed half of those surveyed in households earning less than $40,000 company chairmen earned $200,000 and deserved $120,000. In households earning $100,000 or more, they thought a company chairman earned $300,000 and deserved $200,000.

Prof Gendall said the ratio of a "deserved" difference between the highest and lowest paid occupations had remained relatively constant since 1992, but the difference in perceived and actual earnings had increased.

"While people accept that different occupations deserve different levels of remuneration, they believe the gap between high paid and low paid occupations is too large and increasing," he said.

- NZPA