Granger backs pay hikes for ministers

President David Granger has defended the recent salary hikes for his ministers, which range as high as 50% for those in Cabinet, calling the move an investment in quality governance.

“It was a difficult choice in the first place. It is not something we made recklessly and we had to consider all of the actions and we felt that this was a means of ensuring that the work of the Cabinet, the work of the coalition, would continue,” Granger said during a response to a question about increases on The Public Interest programme, which was broadcast last evening.

Granger was asked whether the administration was considering reversing the decision, in light of the widespread public outcry, including from supporters of the APNU+AFC coalition.

David Granger
David Granger

However, like State Minister Joseph Harmon did last week, the president pointed out that the Cabinet was comprised of many professionals, including some who came from private enterprises where they were earning a lot more.

“…We felt that we had to make a sacrifice to get the best quality and we needed to ensure that the standard of living does not suddenly collapse… Some of them are getting a lot less than they have gotten privately and they are trying to ensure that the Cabinet will give a high level of efficiency and we felt that this was the cost of having a Cabinet of persons who are committed to the development of this country,” Granger said.

“I would even say the changes are an investment for quality governance and I believe that in time to come the evidence will emerge that we made the correct decision,” he added.

Granger said that he is aware of the criticism of the decision among the general public and the APNU+AFC supporters but sought to emphasise that the choice was made in favour of having a stronger Cabinet among the six coalition partners that will allow the members who had been selected to fulfil their duties.

The increases, which were quietly gazetted without a public announcement, have been met with stiff opposition, particularly since the coalition had promised “significant increases” for public servants during its election campaign, but only delivered a 5% increase in its first national budget.

According to the order gazetted by Finance Minister Winston Jordan, Cabinet ministers will now receive $10,439,124 annually, representing a 50% increase. Junior ministers will earn $8,346,492, which represents an over 16% increase from the annual salary of a Cabinet minister under the former administration.

Prime Minister Moses Nagamootoo will now receive $20,580,000 annually, an over $2 million increase, taking his monthly salary to over $1.7 million. Vice-Presidents, other than the Prime Minister, are to be paid $11,135,064 per annum.

Critics have said that ministerial salaries should not be raised much beyond the increase which was paid out to public servants.

Harmon, however, triggered a tidal wave of criticism last week, when he said he said he would make no apologies for the 50% salary increases to Cabinet ministers, while arguing that it is well-deserved. He also said it was necessary to avoid a situation that existed under the former administration, whose members he suggested were prepared to accept low salaries because of graft.

Minister of Governance Raphael Trotman, who in August assured that no increases were to be implemented in immediate future, attempted to defend the hikes on Wednesday, when he told reporters that they were “fair” and “necessary” and intended to ensure parity between salaries paid to members of the executive, legislative and judicial branches of government.

Nonetheless criticism has continued to mount.

Critics, who have urged that the decision be reversed, have pointed out that ministers enjoy a range of benefits, including duty-free concession on a motor vehicle by virtue of being Members of Parliament; chauffeur-driven State vehicle(s); housing allowance or the provision of free accommodation; free electricity, telephone and internet services; 24-hour guard service; a gardener/handyman; and maid services.

A demonstration to push for the reversal of the increases was staged by the Red Thread organisation and concerned citizens outside of the Ministry of the Presidency on Thursday. Two other pickets are to be held next week; one in front of the Ministry again on Tuesday, as Cabinet convenes; and another on Thursday in front of the Public Buildings, where the National Assembly is to hold a sitting.