THE former NSW Liberal MP Bruce Baird has supported the Remuneration Tribunal's concerns that federal ministers are underpaid, saying politicians' salaries are not high enough to attract talented people into Parliament.

But sitting MPs on both sides of politics passed on the tribunal's suggestion that they needed substantial pay rises yesterday, declaring that they were happy with their existing pay packets.

The debate was sparked by the tribunal's president, John Conde, who used his annual report to Parliament to urge a quantum leap in ministerial pay rates.

Mr Conde said the tribunal was concerned pay rates for MPs generally, but especially for ministers, had fallen in relative terms for decades.

He said cabinet ministers in the late 1960s were paid around the same as secretaries of a federal government department.

Now a cabinet minister was on $219,179, while the salary of a lower-level departmental secretary was $365,670.

Mr Baird, who retired at last year's election after 20 years in politics, told ABC radio that fewer people were seeking Liberal preselection than in the past, a trend he put down to declining salary levels for politicians.

"Quite often I talk to young people who say, 'Look, I just can't afford it, mate; the salaries are too low. I've got to look after my family, pay off the mortgage'.

"If we want people who are competent and understand the various strategies that the Government should follow, then I think we need to have people who are well-trained with appropriate background experience … and pay them accordingly."

The Treasurer, Wayne Swan, said he did not agreed that ministers' pay should match that of departmental secretaries.

"We work hard in our jobs and we do it because it's our responsibility and that's what the people elected us for."

The Opposition's finance spokesman, Joe Hockey, said he had not gone into politics for the money.