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NEWS RELEASE · 21st January 2010
Office of the Premier
The annual cost-of-living compensation adjustment for government MLAs will be frozen for the next two years in recognition of the budget challenges facing British Columbia, Premier Gordon Campbell announced today.

"The global economic downturn is still having a major impact on government revenues, and we are grateful for the public service's recognition of the tough choices we face as we commence contract negotiations for the coming years," said Premier Campbell. "In recognition of the progress made to date with public-sector agreements already announced that provide for no wage increases for the next two years, the Province has decided to suspend the cost-of-living compensation increase for all government MLAs for the next two budget years."

Government will pursue measures to suspend the annual April 1 consumer price index adjustment for the next two years, effectively freezing MLA pay. The compensation freeze will be effective for 2010 and 2011, which covers the same period as the existing public-sector contract negotiation mandate.

In addition, all members of cabinet will continue to forgo ten per cent of their ministerial compensation until the Province returns to balanced budgets.