Coleman JonathanCARE AND SUPPORT WORKER (PAY EQUITY) SETTLEMENT BILLFirst ReadingHon Dr JONATHAN COLEMAN (Minister of Health): I move That the Care and Support Worker (Pay Equity) Settlement Bill be now read a first time. I nominate the Health Committee to consider the bill. At the appropriate time I intend to move that the bill be reported to the House by 6 June 2017 and that the committee have authority to meet at any time while the House is sitting (except during oral questions) during any evening on a day on which there has been a sitting of the House and on a Friday in a week in which there has been a sitting of the House despite Standing Orders 191 and 194(1)(b) and (c).It is a great pleasure to be speaking here on Budget day 2017 a historic Budget that shares the benefits of growth with the people of New Zealand by improving public services investing in infrastructure reducing debt and lifting incomes. It is a reflection of the sound fiscal management of the Government over the past nearly 9 years that we now have surpluses and a growing economy and of course that brings options with how to spend that accumulated surplus. In that context it is great to be taking the first call in the debate on this bill a bill that implements what is likely to be the largest employment settlement in New Zealand's history. It is also the first pay equity settlement achieved and as such it is truly historic.I would like to thank all those involved in the negotiations for their constructive and positive approach and that has been over 20 months of negotiations. I would like to acknowledge in particular the unions—that is E tū the Public Service Association the New Zealand Nurses Organisation and the New Zealand Council of Trade Unions—and of course the employer associations consisting of the Aged Care Association the Home and Community Health Association and the New Zealand Disability Support Network. I would like to thank also the Crown negotiator and the many officials who worked tirelessly to achieve this settlement. But actually above all I think the House should pay tribute to Kristine Bartlett who agreed to put herself forward to advance the original claim and an excellent person she is. This is a major achievement that she is responsible for delivering. It was certainly great to host her in my office here in the Beehive just a few weeks ago when we signed the agreement.I would also like to thank all parties in the House that have agreed to progress this legislation giving effect to the settlement. And what a settlement it is—$2 billion over 5 years to increase wages for around 55000 dedicated and hard-working care and support workers. This predominately female workforce cares for some of our most vulnerable people helping them to live with dignity and with as much independence as possible. During my days as a GP I saw the dedication and hard work of these people at first hand on many many occasions. The skill and effort that they bring to the job is something that deserves to be rewarded fairly and I am very pleased to be able to introduce legislation that is going to make that happen.The settlement agreement in this legislation will mean that from 1 July this year care and support workers will start being paid at the level that reflects their qualifications and experience. For the 20000 workers currently on the minimum wage of $15.75 per hour it means that on 1 July they will move to at least $19 per hour which is a 21 percent pay rise. For a full-time worker that means they will be taking home an extra $100 a week which is over $5000 per year extra in the hand. New pay rates will be based on qualifications and will be phased in over 5 years.But we also recognise that many carers without formal qualifications have a wealth of experience so current workers with extensive experience will move to new pay rates based on that experience. For example a care and support worker with no formal qualifications but 8 years of experience will receive the pay rate applying to a worker with a level 3 qualification. That means that a worker in that situation who has been working in a rest home for a decade helping people find comfort through their last months of life might be getting $17 an hour. From 1 July they will now be getting $21 an hour rising to $25 an hour by 1 June 2021 and that person will be getting help to get formal qualifications. So overall for that worker that would be a 47 percent increase in remuneration over 5 years. The increase in income is going to make a massive difference to those workers and to their families.I can tell you that when I visited Anne Maree Court rest home in my electorate of Northcote the day after the announcement of the settlement the care and support workers were literally singing and dancing and cheering with excitement. It was quite an experience.It is important to note that this was a successful negotiation all round with more than just the care and support workers benefiting from the settlement. The employers managed to avoid further court action and they also avoid the risk of back-pay liability. The Government will be funding them to offset the costs. Employers will also receive the benefit of lower turnover of the workforce due to those increased wages and they will also have a more capable and skilled workforce through access to training and qualifications. At the same time the Government gets an agreed and certain outcome that is affordable thanks to the headroom built up by a long-term fiscal strategy. All of this money is new money added to Vote Health.But most importantly the clients of these services will see a benefit from more highly trained health workers who are more likely to be the same ones they saw yesterday. So there will be a more highly trained workforce with lower turnover and a definite career path for those workers.The bill implements those parts of the settlement that the parties agreed would be legislated. It extinguishes all current pay equity claims for this workforce and bars future proceedings for the term of the agreement. It establishes a set of wage rates based on qualifications with a transitional arrangement for workers who do not have formal qualifications but who do have extensive experience. It requires the funders to give the employers extra funding towards the costs of the increased wages and other requirements of the settlement. It provides for the settlement to apply to all care and support workers whether or not they are union members.The Government recognises that implementation of this agreement will be complex for some providers. This agreement will see a new pay matrix introduced that will standardise the pay offered by hundreds of providers under thousands of separate contracts. The key point is that 55000 care and support workers will be receiving their increased pay in their pay packets from 1 July this year. Aged residential care providers which employ about 43 percent of the total workforce have agreed new contract prices that reflect their increased costs. For others they will be paid according to their actual costs until new prices can be agreed.Because this bill needs to be in effect obviously by 1 July there is limited time for select committee consideration but even a shortened select committee consideration will be important in order to ensure that the House has got the legislation right and to ensure that people and organisations affected have the opportunity to comment on the bill.It is of course a big day for health in the Budget: $3.9 billion over 4 years taking health spending to a record $16.8 billion for 2017-18. That is going to be $888 million—$888 million. It is hard to believe but it is the single biggest increase in 11 years. That is what this Government is delivering in this Budget. There is $1.76 billion over 4 years for district health boards. That is $439 million this year. Of course we have covered the $279 million in this Budget for care and support workers. There is $205 million for disability support services and as was previously announced there is $60 million for Pharmac $52 million for emergency ambulance double-crewing and $38.5 million for bowel screening—all services that we are delighted to be delivering for New Zealanders.But one of the most important things is the $224 million over 4 years for mental health to strengthen our services and make sure that all New Zealanders can get access to the services that they need. That includes $100 million in the social investment fund for innovative approaches over the next 4 years; $100 million roughly for the ring-fence; and an extra $24 million for mental health initiatives delivered in an innovative manner across a range of portfolios.This is indeed an extremely historic piece of legislation. It is going to make an enormous difference for care and support workers and their families and I would just like to once again thank all the people and organisations who have worked so hard to make sure that this agreement happens. I am very proud to commend this bill to the House.