Department of Health letter to Age re executive salaries

Date: Monday, 5 December 2011

The Age last week published a story claiming Department of Health executives had received 46 per cent pay increases. These claims are incorrect.

The following is a letter sent to the paper on Friday by the Secretary of the Department of Health for immediate publication.

As the letter has yet to be published it is only fair that the facts surrounding recent executive pay increases, as outlined in the 2010-11 annual report, are on the public record.

Letters Editor
The Age

Comparing Apples with Oranges

The assessment of pay increases to Department of Health executives Health bureaucrats win 46% pay rise (2/12/2011) is misleading and incorrect.

No senior Department of Health executive received more than that set by government wages policy.

A proper analysis of the remuneration details - fully disclosed in notes on page 113 of the 2010-11 Annual Report – clearly outlines the facts.

The article compared a nine-month reporting period in 2009-10 with a full 12-month reporting period for the 2010-11 financial year.

Naturally, this added 25 per cent to the wage bill.

The reason for the shorter reporting period in 2009-10 follows the creation of the Department of Health as a stand-alone department on 1 October 2009.

Your correspondent failed to take account of this noted fact.

As the notes also show, in 2010-11 there were 27 fortnights of remuneration compared with 26 in 2009-10 due to the cycle of calendar pay dates.

This adds about 4 per cent to the wage bill.

Finally, the Annual Report discloses payments to retiring officers of statutory leave entitlements after lengthy service.

The Department of Health is entrusted with the task of achieving the best health and wellbeing for all Victorians – and our executive pay increases are fully compliant with government policy.
Yours sincerely

FRAN THORN
Secretary

Media inquiries:

Bram Alexander, Department of Health Media Unit, (03) 9096 8803, mobile 0412 260 811

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 Department of Health letter to Age re executive salaries (5 December 2011)