Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Cullen fails to show restraint with public sector

John Key MP
National Party Finance Spokesman

21 August 2006

Cullen fails to show restraint with public sector wages

Finance Minister Michael Cullen should explain why he expects the private sector to show restraint over wage hikes when he fails to show such restraint with public sector wage rises, says National Party Finance spokesman John Key.

The latest Labour Cost Index showed the public sector recorded its biggest rise in 15 years in the year to June, at 4.2%. This compares with a 3% rise for the private sector.

"This shows Dr Cullen has failed to restrain the public sector. Instead, he has been busy feeding wage inflation with rises of up to 20% for prison guards and big hikes on the way for other departments like TPK," says Mr Key.

"Yet Dr Cullen has been joining Reserve Bank Governor Alan Bollard in saying that people can't or shouldn't expect wage rises to compensate for inflation, which is now running at an uncomfortable level.

"Dr Cullen said at the beginning of the year that he was going to take a strong line with state sector CEOs about wages, but this has obviously not happened.


"The Reserve Bank has now been outside its 1-3% inflation target for 18 months.

"There's a big risk of inflation becoming imbedded in the system. A key component of that is ongoing wage increases, something Dr Cullen says he's been keen to dampen down in the private sector but has failed miserably to address in the public sector.

"Left unchecked, this will without doubt mean New Zealanders will face either higher interest rates for a longer period of time, or potentially further interest rate hikes.

"Labour's love affair with the public sector is continuing unchecked. Labour has added 10,000 more people to the core public sector- that's bureaucrats, not teachers, nurses or police officers - since 1999.

"With its large wage increases in the public sector, Labour is now adding more petrol to the inflationary fire.

"The thing that keeps Dr Bollard awake at night is the thought of rampant wage inflation.

"Dr Cullen is doing nothing to give Dr Bollard a restful night's sleep."

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>

ALSO:

Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>

ALSO:

General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>

ALSO:

Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>

ALSO:

Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news