Fed: Govt calls for freeze on pollies pay rises

AAP General News (Australia)
02-14-2008
Fed: Govt calls for freeze on pollies pay rises

CANBERRA, Feb 14 AAP - The Rudd government has moved to freeze salary increases for
federal MPs until mid-2009.

Prime Minister Kevin Rudd today proposed the parliament support a regulation which
would stop federal politicians' pay going up until mid next year.

"Furthermore, the government proposes that when this measure comes to close in mid-2009
that there be no claw-back mechanism for any salary foregone between now and then," Mr
Rudd told parliament during question time.

"This is a modest measure, it does not of itself solve the nation's economic challenges
or problems.

"But it does, I believe, indicate to the public at large that the government, and I
hope the parliament, is serious about the overall challenge of wage restraint."

Mr Rudd also urged highly-paid executives in the private sector to reflect carefully
on the need for wage restraint in the coming year.

Federal MPs received a generous 6.8 per cent pay rise last year - more than double
the rate of inflation - taking their base salaries to almost $130,000 a year.

AAP ag/rl/jt/jlw

KEYWORD: WAGES

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