van Velden BrookeSecond ReadingHon BROOKE VAN VELDEN (Minister for Workplace Relations and Safety): I move That the Fair Pay Agreements Act Repeal Bill be now read a second time. The Fair Pay Agreements Act Repeal Bill repeals the Fair Pay Agreements Act that was brought to this House by the previous Government. We do not believe that that bill would have improved workers' outcomes or business outcomes in our economy in New Zealand.We've spoken at length in the first reading about what the effect of those laws would be but I wanted to take the time and the opportunity to express what we heard when the fair pay agreements legislation went through the House under the previous Government some very clear submissions that happened at the time. There were quite a few people who spoke about the effect that that law would have on businesses and on workers in our economy and this is why we are repealing the bill. The first one I'd like to note was the Federated Farmers of New Zealand. They said Some business owners will be forced to downsize or simplify their business to avoid employing people or some will close the doors entirely." That would be an effect of the Fair Pay Agreements Act.Horticulture New Zealand when they talked about the effect talked about the effect on the cost of living for New Zealanders. They said "Fair pay agreements will result in additional costs and organisational compliance for growers. Growers cannot continue to absorb increased costs. If growers stop producing a variety of fruits and vegetables in New Zealand or at worst have to close their businesses this will result in less local choice and diversity of produce for consumers. An increased price of kai for Kiwis—clearly clearly a terrible outcome." There was a quote from a small family-owned promotions company which talked about how this would bring other people into the relationships between an employer and an employee. And they've said "I have a very transparent and good relationship with our team and see any collective agreement that applies to our business will only start alienating my relationship with our small team. Having to negotiate an employment agreement via an unrelated third party may work in a large organisation but certainly not in most small businesses."There was a struggling business in the hospitality sector that said "Our industry is already paying more. Market conditions resulting from labour shortages have already driven hospitality industry wages up beyond what many businesses can afford. Many small hospitality businesses have already closed or are operating reduced days and hours only and they simply can't pay more. The Fair Pay Agreements Act 2022 would represent further change that would go too far too fast with damaging consequences."I note also from the New Zealand Shipping Federation that they said "New Zealand workers must have the right to associate with a trade union where they wish to do so. But the right to freely associate with others includes the right not to associate where an individual does not wish to. This bill has the effect of utilising the powers of the State to compel people who have in many cases consciously and explicitly chosen not to associate with a trade union or an employers association to have a trade union or employers association represent them and their interests without their agreement."These are clear examples of why this Government is repealing the Fair Pay Agreements Act. We do not believe that all employees and all employers within scope should be forced into an agreement where it doesn't work for the worker and it doesn't work for the business. We need a flexible labour market that focuses on productivity growth that focuses on reducing regulation and focuses on reducing inflation so that everybody can have more food on their table for themselves and their families but where businesses have the confidence to flourish and employ more and where business owners have more money to pay their staff more. This Fair Pay Agreements Act would not have done that. It would have led to worse outcomes. We have a clear mandate from the voters for this law to be repealed. We campaigned clearly. It was in the coalition agreement. It is part of our 100-day plan. It will make a better more flexible labour market to return to what we had before the Fair Pay Agreements Act came into force. So therefore I commend it to the House."