CTF Report

REGINA: In a submission to the Saskatchewan MLA Indemnity Review Committee, the Canadian Taxpayers Federation (CTF) is calling for more transparent, fair and accountable pay for MLAs.

The CTF recommends the committee adopt four basic principles:

• MLA pay must be transparent, fair and accountable;
• MLAs must not set their own salaries;
• MLA salary adjustments should be set according to an agreed-upon external measure such as the per cent change in the average weekly earnings of Saskatchewan Taxpayers; and
• MLAs should pay the exact same rate of taxation as those they govern.

The CTF makes the following recommendations:

1) Rescind the $5,426 tax-free portion of MLA salary and institute a new, fully taxable salary of $70,243;

2) Terminate the MLA transition allowance;

3) MLA salaries should not be increased; and

4) The province should annually adjust MLA compensation according to the annual change in Average Weekly Earnings of Saskatchewanians.

"Our goal in this submission is to establish salary levels which are fair for MLAs and taxpayers alike," said CTF Saskatchewan director David MacLean. "As it stands now, this is not the case with respect to taxpayers. MLAs pay a lower effective tax rate than those they govern and they enjoy a severance package you can't beat."

Review process is deeply flawed
The mandate of the committee is limited to looking at basic salaries of MLAs. The mandate does not include a list of expense allowances, per diems, a $5,426 tax-free portion, meal allowances, the MLA pensio plan, pay for additional duties such as Legislative Secretary positions and MLA severance pay - which adds thousands to MLA compensation each year.

"The tax-free portion adds $3,000 per year to MLA base pay and, for a member who is defeated after a four year term, the transition allowance provides a one-time lump of $24,291," said MacLean. "This kind of severance is unheard of in the private sector and the committee isn't even allowed to consider it as compensation."