Treasury's scenarios of unemployment peaking at 13 or even 26 percent show how harmful the timing of the Government's minimum wage hike was, says the New Zealand Taxpayers' Union.

Taxpayers' Union spokesperson Louis Houlbrooke says, "Treasury indicates thousands of businesses will be making difficult decisions over the coming weeks about how many employees they will lay off. These decisions will ultimately swing on costs versus benefits, and the Government has just willfully increased the cost of keeping a low-skilled employee hired."

"If unemployment spikes to 13 or 26 percent as Treasury suggests, the Government will be partially to blame, thanks to its direct intervention on the minimum wage."

"The Government set its minimum wage plans in easier economic times. It beggars belief that these plans have remained unchanged as we enter an unprecedented employment crunch."

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