6. Question No. 6—Workplace Relations and SafetyLAURA TRASK (ACT) to the Minister for Workplace Relations and SafetyQuestion No. 6—Workplace Relations and Safety6. LAURA TRASK (ACT) to the Minister for Workplace Relations and Safety: What is Government policy on Fair Pay Agreements?Hon BROOKE van VELDEN (Minister for Workplace Relations and Safety): ACT and National are both strongly opposed to fair pay agreements. When the law was introduced both parties opposed it and both campaigned to repeal it in the first 100 days of this Government. As a Government we are committed to acting quickly to remove this law before any fair pay agreements are finalised and the negative impacts are felt by the labour market. Fair pay agreements would reduce choice in workplaces and undermine the flexible labour market which has underpinned New Zealand's economic success for the past three decades. Our Government believes the best way to introduce the wages of workers is to improve productivity and reduce regulations so businesses have more money to pay staff more.SPEAKER: I call on—you just got signed in sorry. [Interruption] Camilla Belich. Sorry. My apologies.Camilla Belich: Does she agree with the statement she made on 6 December when she said I don't actually believe that fair pay agreements would help low-wage workers increase wages." or does she agree with the advice that she received in the regulatory impact statement that stated "The main costs of repealing the FPA system would likely fall on employees" and that "They may have benefited from increased wages and improved terms and conditions of work."?Hon BROOKE van VELDEN: I agree with my statement and I also agree with the recommendations from the Ministry of Business Innovation and Employment's (MBIE's) regulatory impact statement before the fair pay agreements legislation was passed where MBIE recommended against introducing fair pay agreements.SPEAKER: We come now to Question No. 7—Laura Trask: Supplementary.SPEAKER: My apologies.Laura Trask: What economic impacts does she expect if the Fair Pay Agreements Act 2022 is not repealed?Hon BROOKE van VELDEN: If any fair pay agreements were finalised the increased costs would have greatly affected a range of businesses up and down the country regardless of whether they could have afforded them. This would have increased prices for consumers and could cause business closures which is worse for employees. I don't consider that a blunt tool will help our labour markets for either employers or employees. Workers could have been negatively impacted for example if employers chose to hire fewer people or reduce hours of work due to higher costs that they face. Laura Trask: What reports if any has she seen on the impact of fair pay agreements on businesses?Hon BROOKE van VELDEN: Many businesses submitted on the introduction of fair pay agreements concerned about the impacts they would have. I have a few examples. Horticulture New Zealand said "This will be a burden on the Government to administer and compliance check yet another regulatory instrument being imposed on business. Most businesses will likely have to employ additional resource to administer the regime—where their margins are already very stretched." The Federated Farmers of New Zealand said "Employers are facing an ever-increasing range of compliance and the accompanying costs following the difficult period of the impact of COVID-19 and the likelihood of an approaching recession. We are concerned that as employers face ever increasing administrative complexities and costs some business owners will be forced to downsize or simplify their business to avoid employing people or some close the doors entirely." There are many more.SPEAKER: Good. Brevity is always useful in an answer to a question."