Furey criticizes proposed hefty hike in MHA pay, as debate reignites over what politicians earn

Premier Andrew Furey says he strongly opposes a plan to increase the salaries of Newfoundland and Labrador politicians by roughly $25,000 per year, while an Opposition MHA says it's time to end the 15-year freeze on increases.

CBC News asked Furey this week if he supported a recommendation from earlier this year to set the base annual salary for MHAs at $120,000, which is a significant jump from the current salary of $95,327, which has been in place since 2009.

"I don't think that that's appropriate at this time with other families struggling with the cost of living right now," Furey said.

He added that a nearly 26 per cent increase is "not something that I would support."

Progressive Conservative MHA Barry Petten said he believes most MHAs of all political stripes support an increase, though — like the premier — he's not convinced that a $25,000 increase is merited.

Petten said it would be difficult to find an occupation in which compensation has not changed in 15 years.

"I think the freeze needs to be lifted … but I have not arrived at a number," said Petten.

'How we value democracy'

Politicians are the gatekeepers of democracy, and 40 MHAs — 22 Liberals, 14 Progressive Conservatives, two New Democrats and two Independents — in are the stewards over a $10-billion government in Newfoundland and Labrador. 

But debate over their own compensation is often one of the most uncomfortable issues faced by elected leaders, because it's such a hot political potato.

• Report recommends $25K salary increase for MHAs, after annual salary frozen for 15 years

In late March, an independent entity called the Members' Compensation Review Committee, led by lawyer and longtime Justice department bureaucrat Heather Jacobs, released a report titled How we value democracy. 

The report made some bold recommendations on MHA salaries, severance, pensions and allowances, with Jacobs saying the current MHA salary is "unfair at best," and at worst is a "detriment to our democracy by potentially discouraging diversity and excellence in the provincial legislature."

She said the current salary is "neither fair nor reasonable," that the public is supportive of an increase, and that the province has the financial wherewithal to increase MHA compensation.

The report also recommended increases for the 25 MHAs who either serve in cabinet or hold other positions that pay them additional remuneration. For example, she recommended increasing the salary for Speaker of the House of Assembly from $48,665 to $55,000, a sum that is paid on top of the base MHA salary. 

Salary No. 1 issue for MHAs

The report also recommends the reinstatement, with retroactive effect, of more generous pension benefits for current and defeated MHAs first elected in 2015. Changes to their pension entitlements were made two years after they were first elected, which the report described as a "significant departure from past practice."

If the recommendations of the report are enacted, MHAs will also receive increased severance and allowances.

Jacobs consulted with MHAs while preparing her report, and said salary was the "No. 1 issue raised by MHAs who participated in the process."

 WATCH |  A suggested $25K MHA pay raise is drawing different reactions:

A $25K raise for MHAs? Furey says no. PC Barry Petten is less decisive

2 months ago

Duration 1:43

It’s been 15 years since Newfoundland and Labrador politicians have seen a pay raise. An independent report commissioned by the House of Assembly concluded not boosting salaries is “unfair.” But Premier Andrew Furey is rejecting the suggested hike of almost $25,000, while it isn’t quite as clear where PC Barry Petten stands on the number.

The report was presented by Jacobs and her team to the all-party House of Assembly Management Commission in April. The commission is responsible for the financial stewardship of all public money approved by the legislature.

Jacobs' report was accepted "without modification" by the commission following a 4-3 vote that saw Speaker Derek Bennett cast the tie-breaking ballot. In doing so, Bennett broke ranks with his three Liberal colleagues on the commission: John Hogan, Lisa Dempster and Lucy Stoyles.

Opposition MHAs Barry Petten, Craig Pardy and Lela Evans also voted to accept the report.

Petten said he voted to accept the report so its recommendations can be debated in the House of Assembly, which he said will likely happen this fall.

"Whatever comes out of that comes out of it and you know it'll be what it'll be," he said.

Meanwhile, Furey said he's "fine" with proposed changes to the pension plan and increases in travel and other allowances, but said he won't support what he described as a nearly 30 per cent pay increase for MHAs.

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