Commission Determines MLAs' Pay Raise

Members of the Legislative Assembly and some other elected officials should receive pay increases to bring their salaries and compensation packages in line with their colleagues in other provinces, an independent commission has determined.

The three-person commission -- chaired by former federal cabinet minister Barbara McDougall and including George McLellan and Gordon Gillis -- has said the salary of an MLA should be increased from $65,556 to $79,500, a 21 per cent increase.

The commission also decided that the premier -- as the most senior executive in the province's legislative structure -- should receive the same salary as the chief judge of the provincial court, phased in over the next five years.

The report was presented today, Sept. 13, to Cecil Clarke, Speaker of the House of Assembly.

In a unanimous decision in July, members of the legislature voted that the commission's recommendations on compensation would be binding. Legislation dictates that increases take effect the first day of the month following an election date, in this case on July 1, 2006.

"We know that Nova Scotians do not want members of the legislature to be deciding their own pay levels," Mr. Clarke said. "That is why we brought in independent experts to take an objective look. It is also why members of the legislature unanimously agreed they should not have the power to alter the salary and indemnity recommendations made by the review commission."

In its report, the commission notes that MLAs in Nova Scotia are currently the third lowest paid in Canada, and that, measured against five other provinces with similar economic or regional characteristics, Nova Scotia has the second lowest salary.

Still, the MLA compensation increase is significantly less than one recommended by former Speaker Arthur Donahoe in a December 2003 review of remuneration.

"Mr. Donahoe recommended that an appropriate level for MLA salaries in Nova Scotia would be 63 per cent of salaries paid to Canadian members of Parliament," said the report. "The recommendation was not implemented, but, had it been, MLA salaries would have increased to $93,051."

MLA salaries are now fully taxable. A tax-free allowance once given to MLAs was abolished on Jan. 1.

In its report the commission said that "it would not be prudent" to increase the premier's salary to that of the chief judge in one leap. It recommends instead that the premier's allowance be increased by $10,000 per year for the next five years.

The premier currently earns $126,880 ($65,556 as an MLA and $61,324 as an indemnity for his responsibilities as premier). The chief judge, whose salary is set by an independent tribunal, currently earns $190,000.

"Determining the 'right' level of compensation is not an exact science. None of the comparatives fit precisely," the report said.

The report does not give additional increases for cabinet ministers (who currently earn $43,696 in addition to their MLA salary), the Speaker or deputy Speaker. The report did recommend a change in the pay for House leaders.

Commission members said they drew heavily on Mr. Donahoe's report, information from public meetings, and a report recently published on MLA salaries in Saskatchewan as well as compensation levels in Manitoba, New Brunswick, Prince Edward Island and Newfoundland and Labrador.

"Many members of the public accept that MLAs work hard although they are not entirely sure at what. In this case they will give MLAs the benefit of the doubt," said the report, which outlined the workload and personal toll of the job and noted that the MLA increase still means MLAs earn "considerably less, appropriately in the view of the commissioners, than Alberta, Ontario and Quebec."

Mr. Clarke said the legislature's Internal Economy Board will also consider suggestions made in the report. The commission suggested that a review of pensions and benefits also be undertaken and that a process of "disclosure and transparency" be developed to ensure that the public understands such issues.

"Under the leadership of then-Speaker Murray Scott, the Internal Economy Board took steps in December of 2005 to try to make its decisions on issues like expenses more widely accessible. The board will certainly consider the commission's suggestion that more must be done to be sure we are meeting public expectations," said Mr. Clarke.