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

 

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news