Kevin Rudd as a Prime Minister should earn $1 million a year and the Opposition Leader $600,000

Barnaby Joyce calls for PM's salary to be $1 million | National News | News.com.au

OUTSPOKEN Senator Barnaby Joyce has called for Kevin Rudd's salary to be almost trebled to $1 million as MPs yesterday defended another pay rise.

The Remuneration Tribunal's decision to boost the base salary of federal politicians next week to $131,000 - an extra 3 per cent - comes just months after the Australian Fair Pay Commission refused to give 1.3 million workers on the lowest wage one cent extra.

But staring down tough economic times and volatile poll results, the Queensland Government yesterday said it would stand by its 2009 election commitment and keep state MPs' salaries frozen.

Senator Joyce told The Courier-Mail that unless pay was comparable with the private sector, Federal Parliament would be filled with "lords, ladies and lunatics".

He said the position of Prime Minister should earn $1 million a year and the Opposition Leader's cheque should swell to $600,000.

Mr Rudd, is paid about $340,000 a year and Opposition Leader Malcolm Turnbull $242,000. Both are already millionaires.

But the senator stopped short of advocating pay parity with some of the country's top chief executives, such as Commonwealth Bank head Ralph Norris, whose fixed cash salary is about $3.25 million.

Independent Senator Nick Xenophon yesterday agreed with Senator Joyce and said Mr Rudd was underpaid.

Acting Prime Minister Julia Gillard said the Government agreed with the "modest" payrise, the first since 2007. Mr Rudd ordered a freeze in 2008.

"Generally, we've seen wage movements of around 3.9 per cent across the economy," Ms Gillard said.

Asked how she could justify a payrise for MPs while the lowest paid missed out, Ms Gillard said: "The Government actually said to the Fair Pay Commission that it should award a considered rise to minimum-wage workers. That's what we argued for."

Acting Opposition Leader Julie Bishop would not be drawn into a debate on whether the payrise was justified.

"The value for money that each member provides to their electorate is judged by the public at every election," Ms Bishop said.

The independent Remuneration Tribunal usually sets increases to principal executive officers on reference salary A - which also includes some bureaucrats - in July.

However, it determined earlier this year it would wait until September.

In a statement yesterday, the tribunal pointed to the nation's improving economic outlook, and "noted" the positive August minutes of the Reserve Bank.

The Australian Fair Pay Commission in July rejected the ACTU's call for a $21-a- week increase because of fears any rise would cost jobs.

It meant the paypackets of low-paid workers remained at $543.78 a week. The last time the minimum wage was frozen was in 1982.

Greens Leader Bob Brown said he would oppose the rise unless "battlers" got one too.