6. Hon TREVOR MALLARD (Labour—Hutt South) Link to this
to the Minister of Labour
What will be the gain in real income per hour, adjusted for inflation since 1 April 2008, of a full-time worker on the minimum wage, as a result of today’s increase to the minimum wage?
Hon KATE WILKINSON (Minister of Labour) Link to this
The member has a short memory. I answered that question on 11 February, as $3.78 for a week. If he divides that figures by 40, his calculator will tell him that the answer is just under 10c an hour.
Hon Trevor Mallard Link to this
Why was the recommended option in the Minister’s first Cabinet committee paper for a nil increase?
Hon KATE WILKINSON Link to this
Several options were recommended to Cabinet. Cabinet decided that $12.50 was the fair minimum wage to set, bearing in mind the economic conditions and that protecting jobs was our priority.
Michael WoodhouseHon KATE WILKINSON Link to this
I have seen several reports, including one from Mr Mallard himself, who said he could not commit to a large increase in the minimum wage due to the economic conditions in October last year—conditions that we know have since worsened. I have seen a report from Phil Goff demanding a rise to $13. I have seen the Labour Party’s election manifesto, which promotes an increase to $12.65. Yet Labour members’ own colleague Darien Fenton has gone on to describe today’s increase as miserable and measly. I ask where the Opposition actually stands on the minimum wage.
Mr SPEAKERHonourable members, please—I simply cannot hear when there is quite so much noise. As I say, I do not mind a boisterous question time—that is good—but this is a wee bit over the top.
Hon Trevor Mallard Link to this
Why was the Minister’s recommended option in her first Cabinet paper for a nil increase?
Hon KATE WILKINSON Link to this
There were three options in the Cabinet paper: one was a nil increase, one was an increase to $12.50, and one was an increase to $12.65. We had to bear in mind the economic conditions and the priority to protect jobs and not encumber businesses with extra expenses that would result in job losses.
Darien FentonDoes the Minister accept that some New Zealanders are still not being paid the minimum wage; if not, why not?
Hon KATE WILKINSON Link to this
As I understand it, between 94,000 and 123,000 people will actually get an increase in their wage as a result of the increase in the minimum wage. There are some New Zealanders who do not receive the minimum wage, for various reasons. One reason, for example, is that they might be under 16 years of age. There are some breaches of the minimum wage regulations and legislation, and we take that very seriously. If any workers are being exploited by unscrupulous employers, we do not condone that sort of activity, as the member well knows.