Media Release: National Distribution Union
Wednesday November 3, 2010

Don Brash’s grab bag of deregulation policies have already failed the economy

Don Brash’s deregulation policies are the same ones that sent the global economy into recession, and will do nothing to close the Australian wage gap, the National Distribution Union said today.

“As Treasury has confirmed, the wage gap opened up in the 1990s when firms were offered the low road, including the deregulation of the labour market. Poor investment in plant and machinery was coupled with cut-price wages thanks to the Employment Contracts Act,” NDU General Secretary Robert Reid said.

“That is the real story behind the Australian wage gap, the story that Don Brash doesn’t want told.”

“Our wage levels were roughly comparable to Australia in the 1980s, but then dropped to 60% of their level by 2002.”

“Australia retained wage fixing systems, and these produced better outcomes for workers, where there are clear industry standards on wages and conditions.”

“Cutting the minimum wage, privatisating state assets and slashing spending like Britain has just done and are all silly ideas that will do nothing to improve the economy and lift wages. Tackling our exchange rate problems, lifting the minimum wage and committing to full employment would bear more fruit.

“This report has done nothing for the economic debate and has been a waste of money. Don Brash blew his budget on his last report. The Government should spare the country from any more of them.”

“Don Brash and his mate Roger Douglas should completely retire,” Robert Reid said.

Ends.

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