10. DARIEN FENTON (Labour) Link to this
to the Minister of Labour
Does she stand by her statement: “The goal is to match Australian income levels by 2025”; if so, will the 25c change in the minimum wage achieve that?
Hon KATE WILKINSON (Minister of Labour) Link to this
Yes. Yesterday the Prime Minister laid out an excellent plan for growing the economy, but simply raising wages by regulation is not the answer. Unlike that member, we are not prepared to risk sentencing 8,000 workers to the dole queue for the sake of a headline.
Is she aware that the 2 percent increase in the minimum wage will not even keep pace with estimated inflation increases of 2.3 percent, and can she explain how letting our poorest get poorer will help close the wage gap with Australia?
Hon KATE WILKINSON Link to this
As the member knows, the 2 percent increase in the minimum wage was linked to inflation at the time. As it turns out, it is also the average increase in wages across the board, so it is also linked to that—which also happened to be Labour’s policy 2 years ago.
What advice has she received on how much less our lowest-income New Zealanders could be earning in real terms once inflation increases as well as increases in accident compensation levies and GST are thrown in?
Hon KATE WILKINSON Link to this
The advice I received was that if we increased the minimum wage to $15 an hour, which was the suggestion made by that party over there, it could result in the loss of 8,000 jobs, and we were not prepared to put those 8,000 jobs at risk.
I raise a point of order, Mr Speaker. I do not think the Minister addressed the question. It was a specific question about the advice she had received on what the impact on the minimum wage would be once inflation and accident compensation levies had been taken into account.
Mr SPEAKERAs far as I heard, the Minister did give the advice that had been received in respect of the impact of raising the minimum wage, and I think for me to ask her to be more specific would be a little pedantic on my part.
Hon Sir Roger Douglas Link to this
Is she aware of the academic research in New Zealand that shows that Labour’s removal of youth rates is responsible for the huge increase in youth unemployment; and will she review that decision, or is she comfortable with youth unemployment of 17 percent, including Māori youth unemployment of 38 percent?
Hon KATE WILKINSON Link to this
The member may be aware that when Labour wanted to abolish the youth rate we did in fact vote against that legislation, for that very reason. We were concerned that it would price young people off the job market, and that it might also be a perverse incentive for them to leave education. I say to the member who asked the question that we are always willing to listen to good ideas.
If the Government does go ahead with an increase to GST, will she commit to supporting Trevor Mallard’s member’s bill to raise the minimum wage to $15 an hour by 2011, so that the more than 450,000 New Zealanders currently struggling to get by on less than that do not fall even further behind?
Hon KATE WILKINSON Link to this
I say to that member that if raising the minimum wage to $15 an hour is such a good idea, why did Labour not do it in the 9 years that it had the opportunity? Our advice tells us that raising the minimum wage to $15 an hour could result in the loss of 8,000 jobs. We are not prepared to risk that. I also remind the member that the Prime Minister made it very clear yesterday that any rise in GST would be offset by changes to income tax, so low-income workers will not be any worse off.