As the outcry over MPs salaries continues, a research report will be discussed by the ANC’s national executive committee, reports Chris Louw
SALARIES paid to members of parliament will be debated at an ANC national executive committee (NEC) meeting in Cape Town this weekend in an effort to stop accusations that MPs live like “fat cats”.
A research report commissioned by the party comparing MP’s salaries in other countries will form the basis of the discussion.
Feelings are running high on grassroots level in the ANC about the purported extravagent salaries paid to parliamentarians and especially ministers. The monthly take-home salaries of ordinary parliamentarians, after tax, is R11 000 and those of cabinet ministers R24 200.
While ordinary ANC members are complaining about the money paid to their leaders, MPs have come to their own defence. “The salaries people saw published were subject to heavy deductions,” said ANC MP John Ncinane this week. Archbishop Desmond Tutu, who said parliamentary salaries should be cut, must not mislead the people of South Africa,” said Ncune.
He accused the cleric of trying to divide the people against their leaders in parliament.
MP Phillip Dexter, whose legislative division commissioned the research report, admitted there was “a lot of confusion” about the money paid to members of parliament.
Even though the recommendations of the controversial Melamet Committee were made public, nobody knows exactly what the “perks” of ministers are, he said. This was a “highly problematic issue”. All the facts needed to become available and to be debated.
ANC spokesman Jackson Mthembu said the research report will be distributed to grassroots structures after being debated by the NEC in order for them to make an input. Once a common position is adopted within the ANC, recommendations will be made to the parliamentary Remuneration Commission, a body provided for in the transitional constitution.
The debate so far, he said, was “destructive”. The ANC accepted that the “generalisation” will only stop once the issue became more transparent.
Dexter accused the media of reporting irresponsibly on the salary issue. He stressed that it was not possible to say whether MPs are in fact overpaid or not before the facts are known.
“It is an issue in which the public, organisations on the ground and MPs themselves must be allowed to have a say. We need an in depth look at the matter.”
Dexter admitted concern that the recommendations of the Melamet Committee — which was commissioned by the Transitional Executive Council — was handed in as a fait accompli. “There was no discussion whatsoever.”
The complete salary structure of MPs, including taxes and enforced expenses, needed to be taken into consideration before coming to a decision, he said.
The comparative report will not be made public. It was an internal matter, according to Mthembu. “The NEC will only make a broad statement on the issue after our meeting.”
Recommendations from members will be discussed at an NEC national working committee meeting in a fortnight’s time. The full review process is expected to take some weeks.
Members of parliament are at present paid a basic salary of R161 000 a year. On top of this they receive another R11 400 as a car allowance. They are only taxed on R121 695 — an amount of R40 404 a year. This means that the average parliamentarian takes home a cash amount of R137 001 a year — slightly more than R11 400 a month.
Salaries increase progressively for whips, standing committee chairmen, deputy speakers and cabinet members.
Someone like Carl Niehaus, who this week was elected chairman of the Correctional Services Standing Committee, earns a salary of R250 800 a year. After taxes he takes home an amount of R14 205,33 each month. This is the same amount that Fanus Schoeman, NP chief whip, earns.
Ministers earn R470 400 a year (car allowances included) and take home an after tax amount of R24 836,91 every month. This is the amount that someone like Constitutional Development Minister Roelf Meyer, for instance, banks each month. His deputy, Mohammed Valli Moosa, takes home a monthly amount of R20 073.
In its report the Melamet Committee stressed that it has applied the principle that salaries “should be such as to attract the best available and competent people to serve in the parliamentary system”. The salary scale is such that it is competitive with the private sector for jobs of similar content and responsibility.
MPs have to pay all their expenses flowing from their having to attend parliament out of their basic salaries — but included in their salaries is an amount of R36 000 that is tax deductible.
No provision was made for a constituency allowance. However, NMPs have already voted themselves an allowance of R3 000 per month for this purpose.
Parliamentarians are allowed two free tickets per month during parliamentary sessions to proceed to and from their home base.
An allowance “calculated at 20 percent of the basic salary of the incumbent of a post” is also paid to all parliamentarians. This, according to the Melamet report, has been left as a special allowance because of the advantages tax benefits provided for in the Income Tax Act.
It was also proposed that members contribute 7,5 percent of pensionable salaries and the state 12,5 percent. On the basis it is calculated that an MP earning R250 000 a year would after a period of 10 years have an accrued invested benefit of R1 032 002.
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