Friday, 29 May 2020

Minimum Wage Hikes and Handouts: Sounds Like Labour


“It sounds like Labour, is what I’m already hearing about National’s promise to raise the minimum wage regularly while handing out money to businesses,” according to ACT Leader David Seymour

“ACT won’t sign up to supporting a Labour Government, or vote for Labour Party policies in any Government.

“New Zealand already has the highest minimum wage relative to the median wage in the English- Speaking world. Labour has raised the Minimum wage by $2.40 in the past two years. That's up 15 per cent versus inflation of four per cent.

“ACT’s Alternative Budget proposes a three-year moratorium on minimum wage increases. That is the kind of certainty businesses affected by the minimum wage need to take on new employees with confidence.

ACT’s Alternative Budget has much better ideas for getting real investment, jobs and growth, rather than spending yet another $500 million of debt on the taxpayers' tab.

“ACT’s Alternative Budget is based on accountability and critical thinking. It would get the Government back to surplus by 2023 while delivering a temporary GST cut and a permanent middle income tax cut.

“The way to reduce anxiety about hiring is to introduce a 12 month trial period, as in ACT’s Alternative Budget.

“These policies have significant long-term advantages over National’s. They benefit all businesses and therefore all employees including current ones. They also do not increase debt, and therefore do not increase businesses’ long-term tax expectations.

“Paying businesses to take people on for ninety days is no substitute for a real economic recovery, it sounds like Labour.