One principal feels demoralised after the Government announced a public sector pay freeze. 

Public sector workers earning more than $60,000 will only get pay rises under exceptional circumstances for the next three years.

The Government says the move means pay increases can be targeted to lower-paid public servants.

Bruce Cunningham, principal of Belmont Primary School in Auckland, told Heather du Plessis-Allan that it's a "real kick in the guts" after their hard work last year. 

"Teachers worked very hard during that time, we had to change and adapt very quickly, and this is the thanks we get." 

He says that many of his teachers won't be able to get a pay increase - and will reach the highest pay band within only a few years.

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