9. Hon MARK GOSCHE (Labour—Maungakiekie) Link to this
to the Minister of Labour
What changes to the minimum wage took effect on 1 April 2008?
Hon TREVOR MALLARD (Minister of Labour) Link to this
The adult minimum wage rose from $11.25 an hour to $12 an hour on 1 April. As well as that, the youth minimum rate of $9 an hour for employees aged 16 and 17 ceased from 1 April and was replaced by a new entrants minimum hourly rate of $9.60 or 80 percent of the adult minimum wage. The new entrants rate can be paid to 16 and 17-year-olds for the first 200 hours or 3 months of employment, and then the adult minimum wage applies. This is the ninth increase in the minimum wage that the Labour-led Government has delivered, with a total increase of $5 for adults since we came into office in 1999, and of $7.80 for 16 and 17-year-olds with the requisite experience.
Hon TREVOR MALLARD Link to this
Yes. I have seen reports showing that between 1990 and 1999, under a National Government, in real terms the wage gap between Australia and New Zealand grew from 19 percent to 28 percent, an increase of 50 percent. The same report shows that between 1999 and 2007, under a Labour Government, in real terms the wage gap between Australia and New Zealand did not widen. The report also shows that the National Party has opposed every opportunity to support real wage growth to workers. Apart from opposing every increase to the minimum wage, National opposed the Employment Relations Act and the Holidays Act. After first opposing paid parental leave it looks as if National has flip-flopped, but who really knows?
Hon TREVOR MALLARD Link to this
I have seen a slippery report from Mr Key—and this is amazing from someone who cannot do an hour’s work at a time in this House—saying: “We would love to see wages drop.” I have seen subsequent reports trying to explain away the comment as being light-hearted. Then he tried to say he was talking about Australian wages. Then he tried to say that it did not count because he said it in a café. Then he said that he had not finished his thought. When none of those efforts worked, efforts were made to bully the editor into sacking the reporter. Subsequently, a clarification was forced, but everyone who read it knew that John Key had said it—
Hon Bill English
Madam SPEAKERThe member is quite right. Would the Minister please succinctly address the question and not give a political speech.
Hon TREVOR MALLARD Link to this
More than that, I am advised that at every opportunity the National Party has—
I raise a point of order, Madam Speaker. There is, as I think we all know, some acceptable standards about the length of answers. I felt you were very tolerant towards the member. When you pulled him up he then continued with a further element of his speech. We cannot all answer questions at that length, or start asking them at that length.
Hon Dr Michael Cullen Link to this
I raise a point of order, Madam Speaker. I think the member should have said “slippery”, and left it at that.
Well, I am not sure that that is a point of order. We had this discussion in the House about the length of questions and answers. For a short period I think members were trying. That answer was far too long; the member is finished.
Peter BrownNoting that answer, and noting that the Minister is a relatively new Minister of Labour, will he confirm that the $12 minimum wage was put in the confidence and supply agreement by New Zealand First; and will he give us the response he gave to me when I advised him, on behalf of New Zealand First, that we would be striving very, very hard to ensure that the minimum wage will go up regularly every year from now on?
Hon TREVOR MALLARD Link to this
I can confirm that best endeavours were made to do that—not an absolute guarantee, but best endeavours was part of that confidence and supply agreement with New Zealand First. I am glad that the member is saying that he wants to be returned to Parliament and to have a similar arrangement in the future, because there is only one party that will do it with him.