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Robertson Detached From Reality On Impact Of Minimum Wage

“Labour’s Finance Spokesperson is completely detached from reality on the impact of the minimum wage on business,” says ACT Leader David Seymour.

“Asked this morning on RNZ’s Nine To Noon whether increasing the minimum wage would hurt job creation, Robertson denied it.

“That’s at odds with the reality on the ground and the advice he’s getting from his own officials.

“Every time the minimum wage goes up, costs faced by small businesses go up by 6 percent. But small business owners can’t increase productivity by the same amount each and every year.

“That either means higher prices for consumers, or fewer jobs and hours for workers. There’s no free lunch.

“When Labour increased the minimum wage as we entered recession and a lockdown, its own officials told it that 6,500 fewer jobs would be created.

“That was a totally irresponsible decision and was criticised by a wide range of economists.

“ACT has seven small business owners in its top 10. We understand the pressures employers face.

“Our small business plan would pause minimum wage increases for three years and reinstate 90-day trials for all businesses to boost job creation and the economy.”

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