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Cabinet shouldn’t get rebates for missing budget targets

Author: 2018/04/19

REGINA, SK: The Canadian Taxpayers Federation (CTF) is thanking the NDP for delaying Bill 27 and giving the government a chance to rethink its plan to send future rebates to cabinet ministers who lose pay for missing current budget targets.

“If ministers get their pay docked for missing budget targets, should they get a rebate because future ministers clean up the mess?” asked Todd MacKay, the CTF’s Prairie Director. “That’s going to be an interesting question for MLAs to chat about with taxpayers at barbeques this summer.

“NDP leader Wab Kinew is doing the right thing by delaying this bill because we know taxpayers want a balanced budget and we’re betting there isn’t much sympathy for cabinet ministers who aren’t getting the job done.”

MLAs get paid $94,513 annually. Cabinet ministers get another $51,745 for a total of $146,258.

Current balanced budget legislation requires the government to trim the operational deficit by at least $100 million per year. Cabinet minister can have their ministerial top-ups docked by up to 20 per cent for missing that target. If the government misses its target again the next year, the penalty doubles to 40 per cent.

Cabinet ministers facing the maximum penalty could have their salaries cut from $146,258 to $125,560. That’s still $31,047 more than an ordinary backbench MLA and $48,570 more than the median household income in Manitoba.

The Manitoba government wants to amend the legislation so that ministers can be rebated for the docked pay if the budget is balanced in the future.

“Here’s a fun thought experiment: what would have happened if former Premier Greg Selinger had made this amendment and current Premier Brain Pallister managed to balance budget?” asked MacKay. “Would Pallister have sent Selinger a cheque?

“The government is confidently projecting the deficit will shrink by more than $100 million every year so cabinet should have no qualms about linking a small fraction of their own salaries to the success of their own plan.”


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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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