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Evening Standard
Evening Standard
World
April Roach

Jacinda Ardern and New Zealand ministers take 20% pay cut during coronavirus crisis

NZ Prime Minister Jacinda Ardern revealed she and ministers would be taking a 20 per cent pay cut for six months (Picture: Getty Images)

The Prime Minister of New Zealand and her Government ministers are taking a 20 per cent pay cut for six months as people across the country struggle financially during the coronavirus pandemic.

Jacinda Ardern said a pay cut was one way ministers and herself could "take action" to close the gap between groups of people across New Zealand.

She said: "Today I can confirm that myself, Government ministers and public service chief executives will take a 20 per cent pay cut for the next six months as we acknowledge New Zealanders who are reliant on wage subsidies, taken pay cuts and are losing their jobs as a result of Covid-19's global pandemic.

"We feel acutely the struggle that many New Zealanders are facing and so do the people that I work with on a daily basis."

As the pay cut runs for six months, it will reduce Ms Ardern's salary by about 10 per cent from $471,049 New Zealand dollars (£226,000) to $423,945 (£203,605).

Cabinet ministers could see a cut of $26,900 (£12,919) and the Deputy Prime Minister Winston Peters' salary would be cut from $334,734 (£160,761) to $302,261 (£145,258), according to the NZ Newshub.

Opposition leader Simon Bridges announced on Twitter that he would also be taking a 20 per cent pay cut to his salary of $296,000 (£142,154) for six months.​

Ms Ardern's move comes after the leader of one of New Zealand's smaller parties, David Seymour of ACT, had said he would bring forward legislation for all the country's MPs to have their pay cut.

Speaking at a press conference, Ms Ardern added: "Of course many people in our public sector are our frontline essential workers, nurses, police, health care professionals, we are not suggesting pay cuts here and nor would New Zealanders find that appropriate.

"Rather, I am responsible for the executive branch, myself and ministers, this is where we can take action and that is why we have."

The Prime Minister acknowledged that the pay cut wouldn't in itself "shift the Government's overall fiscal position" but said the move was about "leadership".

"I acknowledge my colleagues both in the executive but also the colleagues we work with in the public service for the decision that was taken today," she said.

"If there were ever a time to close the gap between groups of people across New Zealand in different positions it is now."

On Tuesday, the Prime Minister said the country appeared to be over the worst of its coronavirus outbreak but it was not time to let up on strict lockdown measures.

The country recorded just 17 new cases of the virus on Tuesday, bringing the total to 1,366. There were also four new deaths, the worst day yet on that measure, bringing the total number of deaths to nine.

New Zealand MPs will decide early next week what will happen after an initial four-week lockdown ends on April 22.

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