Election pitch to cap pay of public service ‘fat cats’
Big-winning civil service executives are in the firing line on the electoral turf to rein in bureaucratic largesse.
Victorian Opposition Leader Jess Wilson has promised to cap base salaries for new senior civil service contracts if the coalition wins the November state election.
The proposed cap would be set at $598,248, the same level as the chief justice of the Supreme Court of Victoria.
Ms Wilson said civil service managers were paid as much as a quarter of a million dollars above the maximum salary range.
A Big Build executive was recently approved for a salary of $834,000 (more than $260,000 above the maximum salary range), while the head of the state’s transportation department earns up to $837,100.
Ms Wilson said the number of civil service managers, dubbed “fat cats” by shadow attorney-general James Newbury, had tripled since Labor came to power in 2014.
“There has been generosity in the public service under a Labor government for too long,” the state’s Liberal leader said after a business breakfast on Wednesday.
“These executives are paid salaries well beyond what is in line with society’s expectations.”
Victoria’s Independent Pay Tribunal is responsible for setting salaries for public service managers and politicians.
Government agencies can seek higher payments to their executives from their respective groups, but must heed the court’s advice.
The proposed salary cap would apply to new hires and renewed or renegotiated contracts and increase annually in line with statewide wages.
The coalition expects this to be applied to 28 roles and deliver an estimated savings of more than $20 million by 2036.
Ms Wilson brushed aside concerns the move could cause Victoria to lose talented managers to other states.
He also said he had no plans to change politicians’ pay, saying the proposed cap for public service managers was below what the Victorian premier earns each year.
Ms Allan is currently Australia’s highest-paid state leader, pocketing $515,972 compared to Prime Minister Anthony Albanese’s pay packet of $622,050.
The Prime Minister claimed that coalition policy was an attack on people who provide public services.
Ms Allan said in Bendigo: “Public servants’ pay is currently and always should be determined by the independent pay tribunal, not by Liberal politicians.”
The coalition has frequently complained about Labour’s appointments to board and executive positions, but Ms Wilson has made no commitment to take the decision out of politicians’ hands.
“We will review this when we come to government,” he said.
