Howard scraps pollie's super
February 12, 2004
PRIME Minister John Howard said today the government would close down the generous parliamentary superannuation scheme for all new MPs and senators.
Mr Howard's announcement matches Labor's promise
Mr Howard said the scheme would be replaced by one in line with community standards with taxpayers contributing nine per cent of parliamentarians' salaries instead of the current rate of about 69 per cent.
"The party room has approved a cabinet decision to legislate immediately to close down the existing commonwealth superannuation scheme for people elected at the next election," he told reporters.
Mr Howard called a special meeting of coalition MPs and senators after question time today to gain approval for the change. It comes two days after Labor announced it would close down the parliamentary superannuation scheme if it won government at this year's election.
Currently MPs who have served at least eight years in parliament retire on an annual pension of $51,000 and the amount increases with time served and responsibility.
But Mr Howard refused to match Opposition Leader Mark Latham in giving up part of the prime ministerial pension if he won office.
"I will take the entitlements I have under the existing scheme," he said.
Mr Howard said the current superannuation system for politicians was not overgenerous. "I don't think the present package is overgenerous, but I recognise that there is a community perception that the superannuation part is too generous," he said.
"By community standards the superannuation on its own is generous, but it's part of a package."
Mr Howard said the government was acting now to ensure the issue did not linger.
He said there were other more important issues facing the country.
"The most sensible thing is to recognise that, to get on with it and do something immediately, not just left it drift on for months and months," he said.
"This is not an issue that looms large in terms of a good or bad future for Australia."
Mr Howard said he did not (not) share Treasurer Peter Costello's concern that a less generous superannuation scheme would dissuade talented people from entering parliament. "As far as I'm concerned good MPs will always come forward for reasons other than money," he said. "I think some people are influenced by money but a lot of people are dissuaded by the present remuneration package, but you know people are influenced by a whole range of things.''
AAP
