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Mps pay rise headed for showdown by Marcus Day

The rise is urged by four of seven members of a committee which examined Parliamentarians' pay.It would push up MPs' salaries from $24,000 a year to $30,700.

salaries by nearly 28 percent.

The rise is urged by four of seven members of a committee which examined Parliamentarians' pay.

It would push up MPs' salaries from $24,000 a year to $30,700.

Ministers' pay, meanwhile, would rise from $48,000 a year to $61,400 while the Premier's salary would increase from $68,000 to $87,000.

Battle lines are now being drawn up as MPs prepare to debate the proposal in two weeks.

Three Government MPs, members of the pay review committee, yesterday staked out their positions.

Government whip Mr. John Barritt and Youth and Sport Minister the Hon. Pamela Gordon attacked the suggested 27.91 percent increase, saying Bermuda could not afford it.

It would add about $500,000 to the Parliamentary wage bill, they said.

And they recommended instead an increase of "no greater than ten percent''.

Government backbencher Dr. David Dyer, meanwhile, put forward a 15.94 percent hike.

This would boost salaries of MPs to $27,826 and senators to $18,550.

Yesterday's skirmishes in the pay battle occurred at the House of Assembly.

A select committee which reviewed Parliamentary pay -- frozen for six years -- delivered its report to MPs. The committee was chaired by Education Minister the Hon. Clarence Terceira.

As well as Ms Gordon, Mr. Barritt, and Dr. Dyer, the members included Opposition MPs Ms Jennifer Smith, Mr. Reginald Burrows, and Mr. Walter Lister.

Dr. Terceira said the committee had analysed salaries between 1980 and 1994.

It had also taken into account inflation since 1982, and how the rate had compared with Bermuda Industrial Union settlements.

Dr. Terceira explained why he and the three PLP MPs decided on their figure.

This reflected the increased cost of living of 27.91 percent -- calculated from the time the last rises were brought in on April 1 1987, until March 31 1994.

With the proposed increases -- backdated to April 1 1994 -- MPs would get $30,700, and senators $20,500.

Officers of the legislature would get increased additional salaries for special responsibilities.

These new salaries would include: Premier, $56,300; Finance Minister, $43,500; Deputy Premier, $38,500; other Ministers, $30,700; Opposition leader, $20,500; Speaker of the House of Assembly, $18,000; and Deputy Speaker, $9,000.

Others would be: Senate President, $10,250; Parliamentary secretaries, $7,700; Senate Vice-President, $2,050; and party whips, $5,200.

Dr. Terceira said it was also recommended that future Parliamentary salaries be tied to inflation and adjusted annually.

And it was suggested Parliamentarians raise their contributions to the Pension Fund from 9.25 percent to 12.5 percent.

In addition, MPs should consider reinvesting their Pension Fund money in a bid to get a higher interest.

Currently it was in the Consolidated Fund, said Dr. Terceira.

Dr. Terceira added the Speaker's Entertainment Allowance needed to be increased in the 1995/96 Budget.

This would "enable him to entertain in the style and dignity befitting his office''.

Mr. Barritt and Ms Gordon then presented their minority report of the committee.

Said Mr. Barritt: "Members have been given an invidious, if not impossible task.

"We have been asked to decide our own salaries. Would that all Bermudians had the power to decide their own salaries.

"How many would feel that they are not underpaid? How many would not think they deserve an increase? "The fact is that most Bermudians do not have the power to decide on their own salaries.

"Some do, and by and large they are people who own and run their own businesses. However, we are certain that when they decide on salary increases for themselves, they do so with a keen eye to the bottom line.

"There may be no bottom line with Government -- it is not run for profit -- but neither are the taxpayers of this country a bottomless pit from which we can draw funding.'' Mr. Barritt said he could not imagine Finance Minister the Hon. David Saul budgeted for a 27.91 percent increase.

But he stressed Ms Gordon and himself accepted the force of arguments for such a hike.

"Members have not had an increase since April 1, 1987. Since 1987, the records show that unionised and most other workers in Bermuda have had greater percentage increases.

"The role of Parliamentary representative is becoming a full-time job with its consequent demands on both our time and our pocket books.'' But Mr. Barritt added: "The unavoidable and inescapable question arises: Can the country afford it? "It is our humble opinion that this Country cannot afford the proposed, across the board increases in salaries for 51 Parliamentarians.'' Mr. Barritt said there were two other reasons against a rise.

"To some extent, it negates the sacrifice Parliamentarians supposedly made when they went without salary increases for a period of time when others in the community were called upon to forego salary increases or to accept increases that were nothing more than nominal.''