Chief Minister Andrew Barr has urged the Remuneration Tribunal to limit any pay increase for politicians to the 1.5 per cent given to public servants, pointing to Canberra's difficult budget.
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The tribunal increased base salaries last year by 6 per cent, to $132,775. It forecast another 6 per cent rise this year, which would bring base salaries in line with the average paid to politicians around the country.
But Mr Barr has urged the tribunal to be restrained. He pointed to pressure on the budget from the Mr Fluffy buyback, expected to cost the government $530 million over the next four years.
Mr Barr is forecasting a budget deficit of $770 million this financial year, a figure that vastly outweighs any previous result in the territory. The deficit for 2015-16 is forecast at $250 million.
In a submission to tribunal chairwoman Anne Cahill Lambert, he said the federal spending cuts were creating challenging times for the ACT.
The territory was also embarking on the biggest ever program of capital works, costing $2.5 billion over four years, to build the Gungahlin tramline, the convention centre, the City to the Lake project and new courts.
The government was determined to be "frugal" in spending to reach a modest surplus by 2017-18, he said.
"I do not wish to diminish or undervalue the important work that our MLAs, senior public servants and other officials undertake, often in difficult circumstances," he said. "Indeed, the Remuneration Tribunal will need to carefully consider the increased work value of these positions. Any adjustments to the remuneration, allowances and entitlements should be consistent with community expectations and community standards and the impact that they may have on the territory's budget."
He pointed to the 1.5 per cent pay increase for public servants in 2014-15, and said pay for senior public servants, officials and politicians should be consistent with that, and not exceed it.
If the tribunal does go ahead with a 6 per cent increase, base pay for the parliamentarians would rise $8000 a year. Most are also getting a loading, ranging from 10 per cent of base salary for committee chairpeople and government and opposition whips, to 70 per cent for a minister and 110 per cent for the chief minister. Mr Barr is paid $279,000.
The government is already facing a much bigger salary bill for the extra eight politicians to be elected next year. Those extra eight will add more than $1 million in base pay alone, plus the cost of their staff and offices.
The Liberals have not made a submission to the tribunal's review of pay.
