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Andrews government pays Big Build bosses super-sized salaries, despite public service cuts

Major projects bosses are raking in super-sized pay packets up to $780K a year, as hundreds of public servants lose their jobs. SEE THE LIST.

The Andrews Government is paying bosses on its gold-plated major projects salaries of up to $780,000, as it slashes public service jobs. Picture: David Crosling
The Andrews Government is paying bosses on its gold-plated major projects salaries of up to $780,000, as it slashes public service jobs. Picture: David Crosling

The Andrews Government is paying bosses on its gold-plated major projects salaries of up to $780,000, at the same time as it slashes public service jobs due to a budget emergency.

Special exemptions from the state’s pay-setting tribunal have been secured in recent months to pay Big Build chiefs the mega pay packets, due to strict salary limits on taxpayer-funded executive positions.

Some of the biggest packages approved include almost $780,000 for the former head of the Major Transport Infrastructure Authority, Corey Hannett, who until recently was overseeing the state’s $100 billion infrastructure program.

Other super-sized salaries approved include up to $750,000 a year for the head of Rail Projects Victoria, Nicole Stoddart, and up to $620,000 a year for Commonwealth Games Organising Committee boss, Jeroen Weimar.

The packages approved were between $127,000 and $286,000 higher than the public sector salary bands usually available for such positions.

Former Major Transport Infrastructure Authority boss Corey Hannett was on a good wicket — earning up to $780,000. Picture: Alex Coppel.
Former Major Transport Infrastructure Authority boss Corey Hannett was on a good wicket — earning up to $780,000. Picture: Alex Coppel.

They’re also significantly higher than the salary and perks pocketed by Premier Daniel Andrews, which are worth almost $470,000 a year.

Documents obtained by the Saturday Herald Sun show that the Government made dozens of applications to the Victorian Independent Remuneration Tribunal for pay exemptions in the past year.

Several positions at the $125 billion Suburban Rail Loop Authority were hiked above standard salary limits, while other projects with special packages include the Level Crossing Removal Project, the North East Link, and a regional rail upgrade program.

Jeroen Weimar’s super-sized pay packet sees him earn up to $620,000 a year as the Commonwealth Games Organising Committee boss. Picture: David Geraghty.
Jeroen Weimar’s super-sized pay packet sees him earn up to $620,000 a year as the Commonwealth Games Organising Committee boss. Picture: David Geraghty.

The remuneration tribunal largely blamed building sector competition for the inflated salaries, as well as technical skills required for some roles and a “current skills shortage for some specialist positions in the major transport infrastructure sector”.

The eye-watering wages can be revealed just days after Victorians departments and agencies were told to slash 10 per cent of their spending due to rising debt and interest rates putting immense pressure on the budget, sparking concerns up to 5000 jobs could go.

Premier Daniel Andrews and his team have softened the ground for a difficult budget, saying the state was in a different position than it was five years ago.

But insiders have expressed frustration that pet areas such as transport and health, along with key election commitments, have largely been spared from the budget’s Razor Gang.

One of the most controversial areas of the state’s infrastructure program is the Suburban Rail Loop, which experts have criticised for its immense cost.

Some of the SRL roles with salary exemptions include the rail infrastructure delivery director, who can be paid $425,000 a year – or $55,000 above the standard range.

The package director for SRL stations also got an exemption and can be paid up to $407,548.

But the biggest increase was for the executive general manager of rail and infrastructure delivery at SRL, which now nets up to $591,875 a year – up from $493,229.

Since 2015, the number of executives earning more than $500,000 has gone from three to 25.

Those earning between $300,000 and $500,000 have risen from 29 to 339.

Shadow Treasurer said Brad Rowswell said the figures showed the government couldn’t manage money and was out of touch.

“While hard working Victorians deal with a rising cost of living, the Andrews Labor Government’s hand-picked executives are taking home almost $500 million a year,” he said.

A government spokesman said the state budget would deliver on election commitments.

“Just as all Victorians are facing cost of living challenges with rising interest rates and inflation, the Victorian Budget will also take into account current economic conditions.”

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Original URL: https://www.heraldsun.com.au/news/victoria/andrews-government-pays-big-build-bosses-supersized-salaries-despite-public-service-cuts/news-story/70078c634bd5bf464b22a59808658691