Venkat Raman
Auckland, March 15, 2020
Prime Minister Jacinda Ardern has led the government in announcing that she, her ministerial colleagues and a large number of government officials are voluntarily taking a 20% cut in their salaries for the next six months.
Announcing this decision at the media conference this afternoon, she said, “Today I can confirm that myself, government ministers and public sector chief executives will take a 20% pay cut for the next six months. We acknowledge New Zealanders who are relying on wage subsidies, taking pay cuts and losing their jobs as a result of Covid-19 global pandemic.”
Struggles of New Zealanders
Ms Ardern said that she feels acutely the struggles that many New Zealanders and the people that she works with are facing on a daily basis.
She acknowledged that the pay cut would not make a significant difference to the country’s exchequer of the fiscal position.
“But is it about leadership and I acknowledge my colleagues both in the Executive and the officials I work with in the public service in the decision that we have taken today. But it also stands besides many actions taken many people,” she said and named the private sector, New Zealand citizens and residents, wage freezes affecting executives and employees, landlords who are supporting with rent freezes as those who are facing the economic challenges perpetrated by the health crisis.
Ms Arden thanked people for promoting safety by staying at home, members of the Student Army for delivering groceries and essential to those who are 65 years or older and health officials who are caring for those quarantined.
Financial package to the media
Ms Ardern said that Ministers are working out a financial package for the media that have been hit by loss in advertising revenue because of closure of businesses.
“There will be more than one tranche. We do see the issues relating to the media. We do not want to do anything too late. As for advertising in the social media, we have to be there because people are there. We have taken sufficient advertising on television and media like others have done. There will be another package down the track in the next few weeks,” she said.
Parliament’s Epidemic Response Committee, chaired by Leader of the Opposition Simon Bridges has been hearing views from representatives of the media, which will be covered in a separate report shortly.
Broadcasting, Communications and Digital Media Minister Kris Faafoi told the Committee that he will have some good news for media companies soon but did not provide details.
“Plurality of voices is important and I will deal with the dearth of local media as a long-term solution, during the post-Covid-19 period,” he said.
ACT Leader’s call
ACT Leader David Seymour said that all Members of Parliament should take 20% pay cut and that he would propose a resolution for Parliament to vote on his proposal when it resumes.
“Covid-19 and the lockdown have taken a significant toll on our economy. Over 40% of workers are now receiving support from the government’s wage subsidy. Businesses across the country are suffering from a sudden halt in revenue. New Zealanders are doing it tough,” he said.
Mr Seymour said that all members of Parliament should have the opportunity to show leadership and solidarity with workers and businesses.
“The pay cut announced today must apply to all MPs, but it is constitutionally inappropriate for the Prime Minister to cut the pay of those holding the government accountable. That is why it is vital that Parliament itself passes my legislation, which will cut the salaries of all MPs by 20%, as soon as it resumes,” he said.
Today’s numbers
Director General of Public Health Dr Ashley Bloomfield reported 20 new cases of Covid-19 in New Zealand, taking the total number of cases to 1386.
He said that of the new cases, 14 were listed as probable cases and that 728 have so recovered from the virus. There are now 16 significant clusters, the latest being at an aged-care facility based in Auckland. 115 Covid-19 cases in New Zealand are healthcare workers but less than five people were confirmed to have been infected by a patient under their care.
If you have symptoms of the coronavirus, call the NZ Covid-19 Healthline on 0800-3585453 (+64 9 358 5453 for international SIMs) or call your GP – please do not show up at a medical centre.
