Financial Services, Latvia, Legislation, Wages

The committee had received a letter from the Bank of Latvia pointing out that European Central Bank statutes designate the Bank of Latvia an independent institution and therefore it cannot be part of a unified salary system, informs LETA.

The committee also decided today to exclude from the system members of the Finance and Capital Market Commission. Also, the State Audit Office will have a "ceiling" – salaries cannot be larger than the prime minister's.

State Auditor Inguna Sudraba pointed out at the meeting that the government cannot set salaries for her institution, and the Office itself can classify its job positions, just as the Cabinet of Ministers does, but not exceeding those salary levels that are the norm in other state institutions.

Gunars Kusins, who heads the Saeima Legal Office, also told the meeting that the State Audit Office's independence is set in the Constitution, and that this institution in fact also controls the Cabinet of Ministers. Therefore, setting its salaries would be unacceptable.

As for including the salaries for Saeima deputies in the unified system, the committee agreed that this would be inappropriate as Saeima is the nation's highest legislative body.

As reported, Saeima committees have received and are reviewing the bill drawn up by Latvia's First Party/Latvia's Way on amending the law "On the Bank of Latvia", which would have salaries for Bank of Latvia president, council, board members and staff included in the unified salary system. At this time, the central bank's council sets salaries.

Finance Minister Einars Repse (New Era) believes that the alterations made by the Saeima Budget and Finance (Taxes) Committee today will nullify the unified salary system for state officials.

In Repse's view, the system proposed by the government is the most appropriate and fair, taking into consideration the nation's economic situation. If Saeima deputies make alterations, then they bear responsibility. Still, in making themselves exempt, "this is no longer a unified salary system," he said.

Repse added that from now on it will be hard to control salaries for CEOs at municipal companies, that often are higher than the president's or the prime minister's.