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Reduce inequality: lift wages

23 August 2012

Reduce inequality: lift wages

CTU is alarmed at a report from the Ministry of Social Development that shows inequality in New Zealand is at its highest level ever. The report also shows that the average income has fallen for the first time since its low point in the early 1990s.

CTU President, Helen Kelly says "the report shows the shocking truth that we are seeing real poverty, and real examples of working poor. Two out of five poor children come from families where at least one adult is in full time work, or is self employed."

"This government is presiding over record inequality, rather than addressing the problem, it's only making things worse with unfair tax changes and unfair employment law changes."

"Average incomes have dropped for the first time since the early 1990s, yet this government is moving ahead with law changes that they themselves acknowledge will cut wages further."

"Workers have seen their after tax wages drop dramatically, at the same time that we've seen our richest individuals wealth increase sharply."

"Tax changes implemented by this government have only exasperated inequality by giving our most wealthy tax cuts, while ignoring everyday working people. We need the government to rebalance the tax system to make it fair rather than contributing to the problem," says Helen Kelly.

ENDS

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