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Pay MLAs for Performance, Scrap MLA Pensions, CTF Tells Committee

Author: Kevin Lacey 2014/02/13

In its presentation to the MLA Remuneration Review Panel, the Canadian Taxpayers Federation (CTF) recommendednew penalties if MLAs fail to properly manage taxpayers’ money.

 

The CTF urged the panel to take an idea from British Columbiaandcut a cabinet minister’s salary by 10 per cent if they fail to hit their departmental spending targets and another 10 per cent if the government fails to balance the budget.

 

“At the very least, we expect our MLAs to spend only as much as they’re allocated. These are the principles every Nova Scotia family lives by; these are the ones our politicians should live by, and if they don’t, there should be consequences,” said Kevin Lacey, Atlantic Director for the Canadian Taxpayers Federation.

 

The CTF also renewed its call to scrap the MLA pension program.

 

In 2010, the CTF launched its Atlantic office with a major report on MLA pensions that showed that for every $1 a politician contributes to the pension program, taxpayers contribute $22. So rich was this pension plan that some MLAs actually earned more when they left office than when working as an MLA.

 

Urged on by the CTF, the then NDP government sent MLA pensions to be reviewed in 2011. That committee reduced pensions by about 30 percent – a step in the right direction, but not far enough.  

 

The CTF recommended the current pension plan be scrapped and replaced with a matching, dollar-for-dollar RRSP system. As well, the CTF suggestedthat the 30 percent reduction announced for existingMLAs should be applied to all MLAs currently collecting a pension. MLA pensions cost taxpayers approximately $11 million each year.

 

“Getting rid of this outrageously rich MLA pension program should be the number one priority of the panel,” addedLacey. “And the MLAs who created this program for themselves in the first place should see their own pensions cut.”

 

The CTF made three other recommendations:

 

First, end “show up to work pay”: MLAs are given $43 per day for each day the House of Assembly sits.

 

“Politicians should not be given extra payments for simply doing what they were elected to do – representing their constituents in the legislature,” saidLacey.

 

Second, reform definition of Outside Member: right now any member whose riding is 40 km from Province House receives a special budget for an apartment in Halifax and other travel benefits.

 

A 40 kilometre drive should take less than a half-hour. Giving an MLA a free apartment for that is out of touch with reality,” continued Lacey.

 

Third, set up acitizens’ committee: regular citizens who represent a wide cross-section of the province should decide all future entitlements of MLAs. 


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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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