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Workers Fall Further Behind With Labour

21 July 2002

Workers Fall Further Behind With Labour

"Wage increases have been seriously eroded by higher inflation under the Labour/Alliance Government's economic management," says National Party Leader Bill English.

Mr English was responding to the report in today's Sunday Star Times which reveals that annual average hourly earnings increased by 6 per cent under National, but only by 0.1 per cent under Labour.

"During Labour's term any increase in wages has been eaten up by higher inflation.

"Michael Cullen has tried to deflect attention away from this by waxing lyrical about gross wages. Job growth has happened, but these new jobs have tended to be low paid ones.

"Today's report clearly shows the dangers of higher inflation and makes a farce of Dr Cullen's recent claims that being tolerant of more inflation will provide the type of growth our economy needs.

"That's blatantly wrong. As New Zealand workers have learnt, under Labour's economic management, higher inflation is just a recipe for further erosion in our standard of living," Mr English says.


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