Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Government needs to ensure economy raises living standards

Government needs to do more to ensure economy raises living standards for all

Figures out today show that what New Zealanders produced, measured by our Gross Domestic Product (GDP), increased by 1.1 percent in the three months to September.

“But while these figures look good on paper they don’t tell the whole story. These figures hide the reality that too many working Kiwis are struggling to make ends meet. The economy is something that we control and for many people it’s not working. We are still in a low wage, low value trap,” says CTU Economist Bill Rosenberg.

“While GDP increased 1.1 percent over the three months to September, and 3.0 percent year on year, it doesn’t do much to improve our living standards and doesn’t make life fairer. What was produced per person in New Zealand increased only 0.9 percent over the year because of strong population growth at 2.1 percent over the year. That means that what is available to increase our standard of living is increasing only slowly - much more slowly than in the 2000s when it increased by 2.6 percent per year on average.”

“Per hour worked, I estimate that New Zealand’s production went backwards by 1.6 percent over the year. That is, labour productivity fell 1.6 percent* in the year to September compared to the previous year. It fell 0.2 percent in the three months to September alone.

“In the long run wages cannot rise sustainably if productivity is falling,” Rosenberg says.

“The Government has a crucial role to play and can do much more. Kiwis need the Government to take action and move the economy away from low wage industries such as tourism and low value commodity exports like milk powder and logs towards higher value goods and services. We need employers much more committed to raising the skills of the people they employ. We need good employment law that ensures that the income that is created by higher productivity flows into wages and salaries,” Rosenberg said.

*This is after correcting for the changes in the Household Labour Force Survey from June which led an artificially high increase in hours worked in the June quarter.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Human Rights Commission: Urgent Need For Action On Seclusion And Restraint

A new independent report has outlined a number of serious concerns about New Zealand’s seclusion and restraint practices, says the Human Rights Commission...

Chief Human Rights Commissioner David Rutherford says that while the report makes for sobering reading, the focus should now be on how the recommendations can be used to reduce the occurrence of seclusion and restraint in New Zealand and, in circumstances where it is necessary, to improve practices. More>>

 

$11bn Capital Spend, New Debt Target: Steven Joyce On Budget Priorities

First, delivering better public services for a growing country – providing all New Zealanders with the opportunity to lead successful independent lives... And finally, we remain committed to reducing the tax burden and in particular the impact of marginal tax rates on lower and middle income earners, when we have the room to do so. More>>

ALSO:

JustSpeak Report: Bail Changes To Blame For New Billion Dollar Prison

In 2013 criminal justice spending was falling and the Government was mulling over what to spend the money on. 3 years later there are 10,000 people in prison and a new billion dollar prison is announced. More>>

ALSO:

Asylum: Dunne Accepts Hundreds Of Postcards On Refugee Categories

Minister Peter Dunne today accepted over 800 postcards calling for convention refugees to have the same entitlements as quota refugees... The campaign has been run with ActionStation together with LUSH Cosmetics, with postcards being signed in stores around New Zealand. More>>

ALSO:

Reshuffle: PM Announces Changes To Ministerial Portfolios

Prime Minister Bill English today announced the appointment of Gerry Brownlee as Minister of Foreign Affairs, Nathan Guy as Minister of Civil Defence, Nikki Kaye as Minister of Education and Mark Mitchell as Minister of Defence. More>>

ALSO:

Q+A Transcript: CTU Call For 'National Standards' On Wages

‘If you look at countries who do better than us, who pay wages better, who have more competitive industries, more successful economies, they have systems where there are national standards.’ More>>

ALSO:

Energy: Greens Launch Plan For Cheaper And Cleaner Electricity

$112 million for winter warm-up payments to help low-income households cover their power bills • setting a goal for 100 percent renewable electricity by 2030 (in average hydrological conditions) • an investigation into the electricity wholesale market. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news