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Minimum Wage—Recent Changes

Tuesday 3 April 2007 Hansard source (external site)

Gosche2. Hon MARK GOSCHE (Labour—Maungakiekie) Link to this
to the Minister of Labour

What changes were made to the minimum wage last Sunday?

DysonHon RUTH DYSON (Minister of Labour) Link to this

I am very pleased that last Sunday the adult minimum wage had its biggest increase since 1999, from $10.25 to $11.25 an hour. The youth rate increased from $8.20 to $9 an hour. This change effectively gives 109,100 workers a pay rise.

GoscheHon Mark Gosche Link to this

Has she seen any reports on changes to the minimum wage?

DysonHon RUTH DYSON Link to this

Yes, I have. I have seen a report that notes that the Labour-led Government has raised the minimum wage each and every year it has been in office, from $7 an hour in 1999 to $11.25 this year—a total rise of $4.25 an hour, or 61 percent. This result stands in stark contrast to the last National Government, which over 9 years raised the minimum wage by less than $1 an hour, or 14 percent.

BrownPeter Brown Link to this

Is the Minister able to assure the House that by this time next year the minimum wage will have increased a further 35c, which is a mere 3.1 percent, to make $12 per hour as stipulated in the confidence and supply agreement with New Zealand First; if not, will she tell the House how the minimum wage will reach $12 per hour before the end of 2008?

DysonHon RUTH DYSON Link to this

If the minimum wage was to rise by only 35c an hour, that would be in breach of the accord we have with both New Zealand First and the Green Party. We are aiming to increase the adult minimum wage by 75c an hour next year, which will take it to $12 an hour.

GoscheHon Mark Gosche Link to this

Has she seen any other reports on other changes to the minimum wage?

DysonHon RUTH DYSON Link to this

Yes, I have. I am pleased to say that I have seen supportive statements from different sectors, including health care providers, the New Zealand Council of Trade Unions, New Zealand First, the Greens, and the Progressive party. However, I seem to be missing one—from a so-called supporter of raising the minimum wage, who again confirms the surveyed opinion of a growing number of New Zealanders that he is simply more style than substance. That person is John Key.

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