An 80 percent boost to the fee framework for certain Crown board members is being defended by the Government as necessary to attract top talent, but opposition MPs say it’s out of touch with the reality most New Zealanders are facing.
The significant increase was quietly made public through a published Cabinet paper on Monday, and confirmed that ministers had agreed to the change following a regular three-yearly review by the Public Service Commission.
The new framework, which came into effect on July 1, includes a jump in the top annual fee for chairs of some Crown entities and trust boards, from $90,000 to $160,000.
While the framework isn’t binding, it provides a pay range to guide ministers and agencies, based on factors such as role complexity, budget, and scrutiny.
The type of boards or entities included in the framework includes royal commissions, public inquiries, government inquiries, and ministerial inquiries. Statutory Tribunals and Authorities.
Prime Minister Christopher Luxon is defending the move, saying the changes were necessary because public service director fees had “got completely out of whack” compared to those in the private sector.
“Over the last decade, it’s got to such a degree that we’re being informed that actually we can’t attract good people who want to come into the public sector to do some of those jobs,” Luxon said.
But opposition parties say the government’s priorities are skewed, particularly when nurses, teachers, and frontline workers continue to push for fair pay.
Labour leader Chris Hipkins called the hike “out of touch” and noted the timing would be difficult for ordinary Kiwis to stomach.
Te Pāti Māori co-leader Debbie Ngarewa-Packer strongly criticised the decision as favouring particular government-picked positions, while cutting back on Māori-led initiatives and advisory boards.
“We see Māori who are out there looking after the communities every day, and we’re expected to do it for free. And we see government that’s clawing back any sort of Māori governance positions, as in Te Aka Whai Ora, as we have seen in Pae Ora legislation amendments as well. So again, it’s just the government looking after its mates,” she said.
Ngarewa-Packer also questioned who typically holds these governance roles, suggesting they’re politically aligned with the coalition.
“They are usually the sort of demographic that would probably support this coalition government. So again, a government that continues to forever look after its mates forever. That’s why its economic policies are failing average New Zealanders, because they can’t see us, they don’t know who we are.” She said.
Green MP Chlöe Swarbrick said the government is demonstrating it can find funding for its own priorities but has failed to invest where it matters most.
“The government can show the New Zealand public that it can find the money when it wants to and when it needs to for the things that it considers a priority, but it has not found the requisite investment for child poverty, or for climate change, or for any of the things that really matter to New Zealanders.”
Labour’s Peeni Henare pointed to the economic pressures many are under amid this significant hike for those who are not as in need as many others in need of support.
“Ko tāku atu ki te kāwanatanga - he nui kē ake ngā take kei mua i tō tāua iwi. Anā, ko te cost of living, koina te take nui kei mua i a mātou. Nō reira, he aha te take kei te tautoko te kāwanatanga i ngā hunga kei runga i ngā poari, engari kei te pēhi tonu tō tāua kei raro?”
