Wednesday, May 26, 2010PM Ready To Take 16% Cut

Taneka ThompsonPM Ready To Take 16% Pay Cut

PRIME Minister Hubert Ingraham has said he is prepared to take a 16 per cent pay cut this upcoming fiscal year, and is proposing similar restrictions to Members of Parliament and public officials in order to curb government spending.

In a measure which will brought to Parliament under an Order by the Prime Minister, the government proposes a seven per cent salary cut to government ministers, a five per cent pay decrease to MPs and a 16 per cent to the Prime Minister's salary, Mr Ingraham told The Tribune last night.

The government also plans to slash allowances to certain public officials; limit hiring of new personnel in the public service to critical areas; freeze promotions and increments; and offer early retirement packages to civil servants with more than 40 years of service as a means to restrain public spending.

The order is expected to be brought before the House of Assembly for a vote when the Ingraham administration unveils its Budget for the 2010/2011 fiscal year tomorrow.

Speaking to The Tribune ahead of the Budget presentation, Mr Ingraham said the decision was brought about because of the hard fiscal reality the government finds itself in.

"We want to sensitise the public to the urgency and immediacy of the problem, and as the head of Government I thought that if I made the sacrifice I'd begin to get some people to understand how serious it is," Mr Ingraham said, adding that the Prime Minister's salary has remained unchanged since 1987.

"If I'm willing to take a 16 per cent cut for a year, I hope the public understands that we mean business, serious business."

Other members of government will also have to make sacrifices as well.

"We're going to cut in half the allowances given to senior public officials, we're going to put a freeze on hiring in the public service except in essential services, very essential critical services, there will be no promotions in consequence, increments will be frozen, we have to undertake a review of the insurance policies government has for public officers. We're going to offer early retirement to a significant number of public officers who have served for more than 40 years," Mr Ingraham continued.

The Prime Minister's salary is $86,000 a year. Members of Parliament make $28,000 a year.

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