As ‘frank and fearless’ advice dies, pay rockets

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Dearly, deary me. From David Uren today:

The pay of many top public servants has soared by 70 per cent since the global financial crisis, with some approaching earnings of $1 million, at a time when growth in average earnings has slowed almost to a standstill.

…Martin Parkinson, who heads the Department of Prime Minister and Cabinet, earns $861,700, which is 71.2 per cent more than his predecessor in the Howard government, Peter Shergold, was getting when he stepped down from the position in early 2008.

Malcolm Turnbull earns $517,504 and, when the last round of pay rises was awarded, received an increase of $195 a week. Dr Parkinson’s increase equated to $1132 a week as it included ­deferred increases from the ­Remuneration Tribunal.

Treasury secretary John Fraser earns only slightly less at $840,810, which is about $240,000 more than Ken Henry was getting when he was dealing with the financial crisis. Although Mr Fraser earned vastly more in his previous private sector job as head of global funds management for investment bank UBS, he is still paid more than double the $373,200 earned by Scott Morrison as Treasurer.

It was Glenn Stevens that set the benchmark when he took his $1m salary and undermined the public service ethos that it was a privilege not a reward to serve the people.

If it is about remuneration rather than service then why bother being honest with the Minister? After all, if you’re there to be paid rather than serve then why offer “frank and fearless” advice and jeopardise the sinecure? Just give the tosser what he wants and go to Europe on your holiday.

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The death of public policy moves apace.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.