Politicians’ wages in dispute during Covid-19 crisis

MHKs discuss whether to take a pay cut

With many businesses forced to cease operation due to Covid-19, the financial impact is taking its toll across the Island.

The latest survey from the Chamber of Commerce shows more than 90% of Island businesses had seen a decrease of revenue since the crisis hit, and 50% planned to reduce their workforce as a reactive measure.

With many feeling the strain around the globe, the likes of footballers and politicians are being looked at to take pay cuts where possible, in order to set an example.

On the Isle of Man, the Council of Ministers have collectively decided to forego a scheduled pay rise of 2.75%, for an unspecified period of time.

The rise comes as the third year of a three-year pay award, negotiated by the Public Services Commission.

MHKs and MLCs don’t negotiate their pay awards, and this year they have been given the choice to opt in or out.

There is a process in train for each individual to decide at the moment, as Tynwald Members’ pay is tied in with the 8,500 public servants on the Island.

Chair of the PSC, and Policy and Reform Minister Chris Thomas explains more:

*2.75% of basic member pay is £1,195 per year. This means around £1,793 for a Minister.

Politicians pay around the world.

New Zealand's Prime Minister, Jacinda Ardern, has said she and other ministers will take a 20% pay cut for six months to show solidarity with those affected by the coronavirus outbreak, as the death toll in New Zealand continues to rise.

Australian politicians discussed following suit, but the call was dismissed by Treasurer Josh Frydenberg, though pay increases have been frozen for politicians and public servants.

Politicians in the UK have also refused to take a pay cut, though UK Health Minister Matt Hancock says he and other ministers are compensating by ‘working every hour there is.’

What should IoM politicians do?

Having turned down this year’s PSC pay award, the question remains whether politicians on the Isle of Man feel it’s enough, or whether they should take a cut to their salary.

Onchan MHK Rob Callister suggested Tynwald members shouldn’t take the pay rise back in March, and says he’d be more than happy to also forego his member’s expenses during the lockdown period:

Douglas Central MHK Ann Corlett says a pay rise would be inappropriate at this time, and she would be happy to take a pay cut.

On whether cuts should be made across all Tynwald members, Mrs Corlett says it would be best to consider each individual’s situation:

Amongst those who’ve said they’ve chosen to opt-out of the 2.75% pay award are: Marlene Maska MLC, Tanya August-Hanson MLC, Kerry Sharpe MLC, Douglas North MHK Ralph Peake, Jane Poole-Wilson MLC, and Onchan MHK Julie Edge.

Speaking to Manx Radio’s Lewis Foster, Julie Edge says she’d be willing to take a percentage pay cut, but hopes that the money is put towards areas in need, and doesn’t sit in the individual’s relevant department:

Moving forward.

At the end of March, Treasury announced a £100 million support package for those affected, and within the first few weeks, there were nearly 5,000 applications for support from various businesses and individuals.

Speaking at last Friday’s government media briefing, Treasury Minister Alfred Cannan said he was confident certain parts of the Island will emerge “in good health”, after the coronavirus pandemic had passed, though admitted it was still early days, and a clearer picture will be visible in June or July.

Meanwhile, Guy Armstrong-Rossiter, Chairman of the Licensed Victuallers Association, says Island pubs could feel the effects of the coronavirus lockdown for 'two to three years', due to knock-on effects from a lack of tourism, and people’s reluctance to return to social gathering sites once restrictions are lifted:

Today, 24 April, many individuals in construction and trade industries were permitted to return to work, whilst maintaining social distancing measures.

It marks the first adjustment of the current lockdown rules, and aims to allow certain parts of the economy to start to recover.