Remuneration Authority legal framework
The main acts relating to remuneration for elected local authority members are:
- The Local Government Act 2002, clause 6 of Schedule 7 which provides for:
- the Remuneration Authority to set the remuneration, allowances and expenses of mayors, and other elected members on local authorities, community boards and Auckland Council local boards
- to set scales of salaries, allowances, ranges of remuneration, different forms of remuneration; prescribe rules for the application of those scales, ranges or different forms of remuneration; differentiate between individuals occupying equivalent positions in different, or in the same, local authorities or community boards; set pay arrangements that apply to individuals or groups occupying equivalent positions
- place a levy on local authorities, to be set by the Minister responsible for the Remuneration Authority, to cover the costs of the Remuneration Authority in setting the remuneration of local authority members.
- The Remuneration Authority Act 1977, ss. 18, 18A which sets out the criteria to which the Authority must have regard in setting pay for local body elected members and the other groups and individuals for which it sets pay. These are:
- fair relativity with comparable positions
- the need to be fair both to the individuals whose pay is being set, and to ratepayer
- the requirements of the job
- the need to recruit and retain competent individuals
- any prevailing adverse economic conditions (which may lead the Authority to set remuneration at a rate lower than might otherwise have been the case).
The Local Government Act 2002 also requires the Authority to minimise the potential for certain types of remuneration to distort behaviour.