Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


With A Bigger Economy NZ Can Have Higher Wages

20 October 2005

With a bigger economy, New Zealand will be able to afford a $12 minimum wage by 2008….

Michael Barnett, Auckland Chamber of Commerce CEO said that under today’s economic conditions many employers will have a lot of difficulty staying competitive if they were forced to provide a minimum wage of $12 an hour.

“I am advised that in some businesses like supermarkets and call centres that operate for long hours and employ high numbers of staff, lifting the minimum wage from the current level of $9.50 to $12 will add move than $10 million a year to the wage bill.”

“But I also note that the minimum wage in Australia is already at A$12.30 ($13.50) and it’s about the same in Britain.”

If we are going to get competitive with Australia and other like economies, the question we should be asking is: “What urgent steps are we going to take to grow the size of the economy and improve productivity so that we can afford to pay competitive wages?”

Instead of being afraid of having a high wage economy, including minimum rates that are competitive with like countries, our challenge in the period ahead is to come up with formulae to grow the economy, boost earnings from exports and be able to afford to pay wages that help lift living standards of everyone.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Climate Leaders Coalition: Launches New Statement Of Ambition, Appoints New CEO Convenor

The Climate Leaders Coalition is tonight officially launching a new Statement of Ambition to accelerate business action on climate change... More>>

Retail: New Law Paves Way For Greater Supermarket Competition

Legislation that bans major supermarkets from blocking their competitors’ access to land to set up new stores paves the way for greater competition in the sector, Minister of Commerce and Consumer Affairs Dr David Clark said... More>>

International Business Forum: NZ EU FTA Coming Down To The Wire – Hold The Line

As negotiations accelerate to conclude an ambitious free trade agreement between New Zealand and the European Union, the NZ International Business Forum (NZIBF), representing a cross section of major exporters... More>>

MYOB: New Data Shows Increase In SMEs Experiencing Stress And Anxiety

The lingering impacts of the COVID-19 pandemic have led to a surge in the number of local SME owners and operators experiencing stress and anxiety, according to new research from business management platform, MYOB... More>>

Carbonz: Cashing In On Carbon: The New Marketplace Helping Native Forest To Thrive

The country’s first voluntary carbon credit marketplace, Carbonz, is here to restore native biodiversity and help Aotearoa reach its carbon zero goals by selling the first carbon credits exclusively from native forest... More>>
Entrust District: Dividend Will Be Welcomed After Another Tough Year
We’ve all heard of the saying; “if it sounds too good to be true, it probably is” but for Aucklanders within the Entrust District, getting their share of Entrust’s 2022 annual dividend payment really is as good as it sounds... More>>