29 July 2011

Rich list highlights poor policy choice

The minimum wage would be $15.60 if it had increased at the same rate as the wealth of the richest New Zealanders the Green Party said today.

The NBR rich list shows a 20 per cent increase in the combined wealth of the richest 150 New Zealanders. A 20 per cent increase to the $13 minimum wage would see it jump to $15.60. Nearly 275,000 people earn less than $15 an hour in New Zealand.

“We need fair policies, like immediately raising the minimum wage to $15 an hour, to reduce income inequality in New Zealand,” said Green Party Co-leader Metiria Turei.

“While the NBR celebrates the richest New Zealanders getting richer it is important to remember that one quarter of all New Zealand children are growing up in poverty, that’s about 270,000 kids.

“John Key was quick to give tax cuts to the wealthiest New Zealanders, but has been slow to help the poorest and their children.

“It isn’t fair that Westpac CEO George Frazis reaps around $5000 a week in tax cuts while someone on the minimum wage only gets an extra 25 cents an hour.

“What we need is a poor list. An annual document that sets out the challenges of living on less than poverty wages in New Zealand and highlights the growing gap in income inequality.”

The latest OECD report on income inequality shows New Zealand has one of the highest rates out of the developed countries. We rank 25 out of 34 countries for income equality and the report notes that since the mid-80s we were one of the countries that income inequality grown most strongly in.

“The NBR rich list serves as a wakeup call on inequality in New Zealand. We need policies to raise the income levels of the least well off,” said Ms Turei.

Metiria Turei will launch the Green Party’s plan to bring 100,000 children out of poverty by 2014 in West Auckland next Wednesday, August 3.

OECD report on income inequality www.oecd.org/dataoecd/27/60/47570121.pdf

ENDS

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