[Australia] Victorian government defends huge boss salaries amid criticism

[Australia] Victorian government defends huge boss salaries amid criticism
10 Jul 2023

In Australia, the Victorian government has cited market forces as the reason it has paid 25 transport infrastructure project bosses more than $12 million a year in combined salaries as criticism over the decision grows, PerthNow reports.

A leaked report published by the Herald Sun on July 9 revealed that some public sector road and rail executives are earning twice as much as those in equivalent department roles.

Government Services Minister Danny Pearson reportedly wrote to the Victorian Independent Remuneration Tribunal in 2021 to request advice on transport infrastructure chief salaries following private market competition.

The tribunal's advice indicated that 16 of the 25 assessed executives were earning more than the maximum recommended packages for their roles, as of mid-2022.

Rail Projects Victoria chief executive Evan Tattersall had the highest annual earnings at $814,251 - compared to the advised pay packet of $768,000 a year - he has since retired.

The other salaries revealed include those of North East Link chief operating officer ($748,755), Major Road Projects Victoria chief executive ($713,307) and Suburban Rail Loop executive general manager of rail and infrastructure delivery ($680,000).

Senior Victorian minister Lily D'Ambrosio told reporters that the state government had to spend more to remain competitive with other states for senior roles in the crowded infrastructure construction market.

"This does put pressure on labour availability ... and we're also competing with investments in big infrastructure by the private sector," she said.

"There's lots of pressures of course in terms of those infrastructure projects that exist across the country, and that is why we always need to have an eye to being able to retain or attract the best possible people to do these jobs."

In June, Ms D'Ambrosio and other Victorian MPs were reportedly awarded a 3.5 per cent base salary increase by the independent tribunal.

Wage rises for lower-level Victorian public sector workers, by contrast, are capped at three per cent; significantly below annual inflation.

Shadow Treasurer Brad Rowswell said Victorian taxpayers expected to get value for their money as belts tightened during the cost of the living crisis.

"Having a circumstance where you've got executive fat cats sitting in ivory towers far removed from the realities of a family kitchen table ... is completely out of step with community expectation," he said.

In recent years, budgeted costs and forecast completion dates have reportedly not been met for several major Victorian projects in recent years.

Mr Rowswell said the opposition did not have an issue with the government attempting to attract the best talent to helm major projects, however, he stated that the salaries must come with performance measures.

"This isn't Danny Pearson's money ... this is Victorian taxpayers' money," he said


Source: PerthNow

(Quotes via original reporting)

In Australia, the Victorian government has cited market forces as the reason it has paid 25 transport infrastructure project bosses more than $12 million a year in combined salaries as criticism over the decision grows, PerthNow reports.

A leaked report published by the Herald Sun on July 9 revealed that some public sector road and rail executives are earning twice as much as those in equivalent department roles.

Government Services Minister Danny Pearson reportedly wrote to the Victorian Independent Remuneration Tribunal in 2021 to request advice on transport infrastructure chief salaries following private market competition.

The tribunal's advice indicated that 16 of the 25 assessed executives were earning more than the maximum recommended packages for their roles, as of mid-2022.

Rail Projects Victoria chief executive Evan Tattersall had the highest annual earnings at $814,251 - compared to the advised pay packet of $768,000 a year - he has since retired.

The other salaries revealed include those of North East Link chief operating officer ($748,755), Major Road Projects Victoria chief executive ($713,307) and Suburban Rail Loop executive general manager of rail and infrastructure delivery ($680,000).

Senior Victorian minister Lily D'Ambrosio told reporters that the state government had to spend more to remain competitive with other states for senior roles in the crowded infrastructure construction market.

"This does put pressure on labour availability ... and we're also competing with investments in big infrastructure by the private sector," she said.

"There's lots of pressures of course in terms of those infrastructure projects that exist across the country, and that is why we always need to have an eye to being able to retain or attract the best possible people to do these jobs."

In June, Ms D'Ambrosio and other Victorian MPs were reportedly awarded a 3.5 per cent base salary increase by the independent tribunal.

Wage rises for lower-level Victorian public sector workers, by contrast, are capped at three per cent; significantly below annual inflation.

Shadow Treasurer Brad Rowswell said Victorian taxpayers expected to get value for their money as belts tightened during the cost of the living crisis.

"Having a circumstance where you've got executive fat cats sitting in ivory towers far removed from the realities of a family kitchen table ... is completely out of step with community expectation," he said.

In recent years, budgeted costs and forecast completion dates have reportedly not been met for several major Victorian projects in recent years.

Mr Rowswell said the opposition did not have an issue with the government attempting to attract the best talent to helm major projects, however, he stated that the salaries must come with performance measures.

"This isn't Danny Pearson's money ... this is Victorian taxpayers' money," he said


Source: PerthNow

(Quotes via original reporting)

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