Williams defends MP payout

STATE MINISTER in the Ministry of Finance and the Public Service, Senator Arthur Williams, has moved quickly to quell growing disquiet within the public sector over a $32-million payout to members of parliament (MP) for outstanding motor-vehicle allowances.

On Tuesday, the Police Federation reacted angrily to the news, charging that the payment was a contradiction of the Government's claim of an "inability to pay".

In a response yesterday, Williams, who has responsibility for the public sector, said it was unfair to link the payment of motor-vehicle allowances to salary increases outstanding to public-sector workers because of the wage freeze.

Public-sector workers have had to endure three consecutive years of wage freeze and indications are that another wage freeze might be imposed on the public sector in the upcoming fiscal year, which begins in April.

Williams said the payments to MPs represent outstanding motor-vehicle allowances dating back to April 1, 2006.

Defending the payout, Williams said parliamentarians were the only group in the public service that did not receive payment for the allowances due in 2006.

Outstanding amount

Williams said all public-sector workers have received the allowances due to them from 2006. He said the only outstanding amount for general allowances to public-sector workers are for the 2008-2010 contract period.

He further argued that MPs were also subject to the wage freeze and government parliamentarians had given up 10 per cent of their salary, with the prime minister relinquishing 15 per cent.

The $32-million payment, which is for retroactive motor-vehicle allowances, was paid to past and present MPs who were members of the House of Representatives from 2006.