Parliament

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

 

Wage rises helping Kiwis cover the cost of living

Hon David Clark

Acting Minister of Finance


23 January 2019

PĀNUI PĀPĀHO

MEDIA STATEMENT

Figures out today show wages continue to rise faster than the cost of living, Acting Finance Minister David Clark says.

Statistics NZ said today that Consumers Price Index (CPI) inflation was just 0.1% over the final three months of 2018 as food and petrol prices fell, and remained at 1.9% annually in the year to December – in line with the Reserve Bank’s target.

“The inflation figures out today are further evidence of New Zealand’s solid underlying economic fundamentals. We are now seeing income growth higher than increases in the cost of living,” David Clark said.

“Data from Statistics NZ shows household incomes up 5% annually, and the latest Quarterly Employment Survey also shows growth in individuals’ average hourly earnings of around 3% from the year before.

“The Coalition Government’s plan includes a number of key economic policies focussed on lifting the incomes of New Zealanders to help them face the cost of living.

“The Families Package will deliver an average $75 a week to 384,000 low and middle income families when fully rolled out, the minimum wage is rising by $1.20 an hour to $17.70 on 1 April 2019, and new policies like the R&D tax incentive, the Green Investment Fund and the Provincial Growth Fund are designed to encourage businesses to invest to improve productivity.

“We are also focussing on boosting the skill levels of all New Zealanders through policies like Fees-free, Mana-in-Mahi/Strength in Work and Micro-credentials, which again will lead to higher wages.

“The latest CPI data also shows annual rent rises in Auckland were the lowest in four years. This follows Auckland’s largest real estate agent, Barfoot and Thompson, saying rent increases trended down through 2018, and that December figures showed “the lowest rate of change yet”. It also fits with nationwide median rent data for December showing the annual increase was lower in December compared to November, with the median rent flat across the final three months of 2018.

“The low quarterly inflation number came as food and petrol prices fell during the December quarter. Statistics NZ said petrol prices fell 0.6% in the December quarter, despite the regular annual fuel tax increase on 30 September. By the last week of December, petrol prices were 8.3% below the average over the quarter.

“This is further evidence that the main drivers of New Zealand petrol prices are external factors like the international oil price and the exchange rate, in contrast to the Opposition’s constant negative scaremongering,” David Clark said.

ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Commerce Commission: Retail Fuel "Not As Competitive As It Could Be"

The Commission has outlined some options it considers could improve competition. There are two broad sets of options it thinks may have the potential to help create a competitive wholesale market. These are:

• Greater contractual freedom to make it easier for resellers to switch between suppliers; and
• Enabling wider participation in the majors’ joint infrastructure, notably the shared terminals and supporting logistics involved in their borrow-and-loan system.
Further options, including improving the transparency of premium petrol prices, are discussed in the draft report. More>>

 

Promises: Independent Election Policy Costing Unit A Step Closer

The creation of an entity to provide political parties with independent and non-partisan policy costings is a step closer today, according to Finance Minister Grant Robertson and Associate Finance Minister James Shaw. More>>

ALSO:

School's In: Primary And Intermediate Principals Accept New Offer

Primary and intermediate school principals have voted to accept a new settlement from the Ministry of Education, which includes entrenched pay parity with secondary principals. More>>

ALSO:

IPCA On 'Rawshark' Investigation: Multiple Police Failings In Hager Searches Confirmed

The Independent Police Conduct Authority has found that the Police's unlawful search of Nicky Hager's property in October 2014 resulted from an unwitting neglect of duty and did not amount to misconduct by any individual officer... More>>

ALSO:

Broadcasting Standards: Decisions On Coverage Of Mosque Attacks

The Authority upheld one of these complaints, finding that the use of extensive excerpts from the alleged attacker’s livestream video on Sky News New Zealand had the potential to cause significant distress to audiences in New Zealand, and particularly to the family and friends of victims, and the wider Muslim community. More>>

PM's Post-Cab: Bad Mail

Cabinet was updated on the process around prisoners sending mail, following the accused Christchurch gunman sending letters that "should have been stopped". All mail of "high concern prisoners" will now be checked by a specialist team and a changes to the legal criteria for witholding mail are expecting to go to a cabinet committee in this parliamentary session. More>>

Welfare: Ongoing Drug-Test Sanctions Contradicts Govt’s Rhetoric

Reports that two-thirds of beneficiaries who fail drug tests are still having their benefit sanctioned contradicts the Government’s so-called health approach to drugs. More>>

ALSO:

Welfare: More Measures To Help Those Facing Homelessness

Ministers have announced $54 million in Government funding for initiatives which will support at-risk individuals and whānau to stay in their existing tenancies. The funding will also provide additional wrap around services. More>>

ALSO:

Corrections: New Strategy On Māori Reoffending And imprisonment

Authentic co-design with Māori, incorporating a Te Ao Māori worldview, and greater connectedness with whānau are key elements of Hōkai Rangi, Corrections’ new departmental strategy designed to address the long-term challenge of Māori reoffending and imprisonment. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels