10. DARIEN FENTON (Labour) Link to this
to the Minister of Labour
What advice, if any, has she recently received on the value of the minimum wage relative to the cost of living?
Hon TONY RYALL (Minister of Health) Link to this
How will her Government compensate minimum-wage workers when the annual increase in food prices of 6.6 percent in the August 2011 year has far outstripped the minimum-wage increase of 25c per hour, which was delivered by her Government on 1 April 2011?
As the member knows, there is an annual process of consideration about what the minimum wage will be set at, and the Minister will no doubt take that information into account in her consideration.
Does she accept that the income of minimum-wage workers has declined in real terms by $16.80 a week since June 2010; if so, will she take that into account in this year’s minimum-wage review and increase the minimum wage to $15 an hour?
Since 2008 the Government has increased the minimum wage from $12 to its current level of $13 per hour. This is an increase of 8.3 percent, which is in line with the CPI. I would reflect that that party opposite had 9 years, while previously in Government, in which to put the minimum wage up to $15.
Te Ururoa Flavell Link to this
Kia ora, Mr Speaker. Kia ora tātou. Does the Minister agree with the proposals put to the Prime Minister by the Māori Party that lifting the minimum wage to $15 per hour would have a hugely positive effect on reducing child poverty and on the cost of living for many people; if not, why not?
The Government is working every day to raise the living standards for all New Zealand families in the most difficult economic times for generations. Advice from the Department of Labour suggests that, in fact, the policy the member has described would have the opposite effect, with the loss of more than 6,000 jobs.
What plans does her Government have to improve the situation for other wage-workers whose real income has declined under her Government, with an average increase of just 1.9 percent in the past year compared with 5.3 percent inflation?