Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Living wage puts bill on those who cannot afford it

FOR IMMEDIATE RELEASE

1 April 2014

Living wage puts bill on those who cannot afford it – MANZ

The calls for a so-called living wage ignores economic reality and puts the cost on to mostly small businesses that cannot afford it, says the Motel Association of New Zealand (MANZ).

New Zealand economic growth is still fragile and many small businesses such as motels are still in recovery mode after some lean years, and not well equipped to deal with the constant cost pressure being heaped on them by local and central government, MANZ Chief Executive Michael Baines says.

“It’s fine to call for higher wages for those at the lower end of the income scale, but it’s just as important to figure out who is going to pay for it. In the past few years small businesses such as motels have been lumped with a range of cost increases, many of which are being imposed by greedy councils who see us as an easy target for revenue gathering,” Mr Baines says.

“Small businesses are being bled by an ever-increasing array of compliance costs, and for some the so-called living wage could be enough to tip them over the edge.”

With many motels owner-operated, if staff costs become unaffordable the owner in many cases will be more likely to lay off staff and do more work themselves. “There’s little point introducing a living wage if the ultimate cost of this is jobs,” Mr Baines says.

New Zealand’s economy is looking positive but many motel-owners need to retire debt accrued during the lean years, or address maintenance and upgrading which may have been deferred.

“Unlike many of our corporates, the profits made from small businesses are reinvested into our communities. Politicians should be examining ways to nurture small businesses, not pile additional costs on them,” Mr Baines says.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news