Parker David: Questions for Oral Answer — Questions to Ministers 
Parker David: Questions for Oral Answer — Questions to Ministers 
[Volume:665;Page:12748] 
6. 
Hon DAVID PARKER (Labour) 
 to the  
Minister for Economic Development 
: What was the gap expressed in New Zealand dollars between the average gross weekly wage or salary paid to an adult full-time worker in Australia compared with New Zealand in December 2008 and what was the gap in March 2010? 
Hon GERRY BROWNLEE (Minister for Economic Development) 
: 
 I start by acknowledging the very specific nature of the member’s question and its attempt to cherry-pick the measures relative to wage movements between our two countries. In making this calculation we are reliant on a number of factors so I will set out in detail the calculation for the benefit of the House. Advice from Statistics New Zealand is that the two most comparable statistical series are for New Zealand the Statistics New Zealand quarterly employment survey or QES which shows that the total average weekly earning series rose from NZ$914.05 in November 2008 to NZ$959.13 in March 2010 and for Australia the most appropriate measure is the Australian Bureau of Statistics total average weekly earnings for full-time earners series which shows that earnings rose from A$1210.80 in December 2008 to A$1290.70 in March 2010. To equate the Australian series into New Zealand dollars for comparison using the relevant purchasing power parity factor of 1.0226 we can make a conversion to New Zealand dollars. The purchasing power parity figure for March 2010 is not yet available but to be fair to the member we have decided to provide an approximate answer and we have used the same purchasing power parity adjustment figure. It should also be noted that these are gross figures which do not relate to what the average worker would receive as take-home pay. I can inform the House that the Australian figure equates to NZ$1228.16 in December 2008 and NZ$1319.86 in March 2010. This represents a fall in the relative position of the New Zealand worker of approximately 1.1 percent compared with an Australian worker over the same period of time. This means that the gap measured by these particular series on this particular cherry-picked number has gone from NZ$314.11 to $360.73. The Government has a comprehensive economic programme to address that gap. [ 
Interruption 
] 
Mr SPEAKER 
: There will not be more. The answer was quite long enough. 
Hon David Parker 
: Is he confirming that the gap grew by more than $50 a week? 
Hon GERRY BROWNLEE 
: That would entirely depend on which series the member wants me to answer from. If he would like to be specific about the series I will give him a specific answer. I gave him a long answer before because I know that he spent the morning poring over the spreadsheets celebrating New Zealand workers earning less than Australians. 
Hon David Parker 
: Is he denying that the gap grew by more than $50 a week? 
Hon GERRY BROWNLEE 
: When the member makes it clear which series of numbers he wants me to comment on I will give him an appropriate comment. I have given him a very full answer. If he could not work out from that exactly what the picture is I cannot help him. 
Hon David Parker 
: Does the Minister agree with the Prime Minister that the document that the Prime Minister tabled today shows that the wage gap adjusted for purchase price parity has narrowed since the election or has the Minister read that document properly and seen that even on those numbers the gap has grown wider? 
Hon GERRY BROWNLEE 
: I find it difficult for the member to make that claim when in fact the gap was $117.07 a week in 1999 had risen to $187.60 a week in 2005 and now in 2010 sits at $160.25 a week. The difference between $187.60 and $160.25 is a narrowing of the gap. 
Hon Phil Goff 
: Can the Minister confirm that in the massaged figures tabled by the Prime Minister himself the gap has actually increased from $137 a week when Labour left office to $160 a week now—a widening of the gap of about 14 percent on the Prime Minister’s own massaged figures? 
Hon GERRY BROWNLEE 
: No because we are talking about a series of figures. If members want to cherry-pick and say the best that Labour ever did while in Government was get the gap to the figure he just mentioned that would be a sad indictment on that Government’s ambition for New Zealanders. 
Amy Adams 
: What impact will the Government’s 1 October income tax cuts have on relative after-tax incomes between New Zealand and Australia? 
Hon GERRY BROWNLEE 
: When the— 
Hon Member 
: Oh it’s a series now is it? 
Hon GERRY BROWNLEE 
: That is the problem that we have. We get a simple question about money going into people’s pockets and the Opposition wants to talk about— 
Mr SPEAKER 
: The Minister was asked a question and he does not need to go into talking about problems with regard to the question. The questioner was his own colleague and I am sure that he can answer her. 
Hon GERRY BROWNLEE 
: It is not surprising that the Opposition does not want to hear the answer because when our tax cuts kick in on 1 October the gap between after-tax wages in New Zealand and Australia will have narrowed since 2008. In December 2008 an adult full-time worker in New Zealand received a net $726 per week compared with $964 in Australia—a gap of $238. That is net after tax. As at March 2010 these figures were $774 for a New Zealand worker and $1021 for an Australian worker which is a gap of $247. The tax cuts will shift these figures to NZ$803 and A$1030 reducing the net pay gap by more than $20 per week to $227. 
Hon David Parker 
: Which of the Government’s economic development initiatives contributed most to the widening of the wage gap: the cycleway the Job Summit the financial services hub Chinese broadband investment or mining in national parks? 
Hon GERRY BROWNLEE 
: If the member had listened he would know that his question was ridiculous. But I can tell him that the wage gap will narrow because the Government has a comprehensive programme that includes Resource Management Act reform tax cuts massive investment in infrastructure considerable investment in skills and education science and innovation investment not seen in this country before free-trade agreements by the score a trade focus from our agencies such as there has never been before a focus on front-line services labour-market reform and a reduction in the size of the Government. The list could go on and on. Those are all positive initiatives and they are reasons why the wage gap between Australia and New Zealand will continue to narrow. 
Hon David Parker 
: How much more will the wage gap grow before his Government admits that it is failing to meet its election promise? 
Hon GERRY BROWNLEE 
: The information is all there for members to see. It is now in  
Hansard 
; there has been information tabled. The proposition being put by Mr Parker is completely wrong. He is starting to look like Don Quixote running outside and looking for a windmill. 
Mr SPEAKER 
: That last bit was unnecessary. 
Hon David Parker 
: Which is widening faster: the ever-widening wage gap with Australia or his Government’s credibility? 
Hon GERRY BROWNLEE 
: I seek leave of the House to table poll results later today to show also how preposterous that question was. 
Hon David Parker 
: I raise a point of order Mr Speaker. I would be most interested to see the National— 
Mr SPEAKER 
: That is not a point of order. [ 
Interruption 
] 
Hon GERRY BROWNLEE 
: I raise a point of order Mr Speaker. 
Mr SPEAKER 
: The member will resume his seat. We will deal with the Hon David Parker first. The member was under no doubt that the Speaker was on his feet and he just continued regardless of that. I realise that members have had quite a robust exchange over this issue and I realise that the way that figures are treated can make a difference to how they are seen but when I am on my feet the member will resume his seat. If he wishes to raise a point of order I will hear it but I will not tolerate that kind of behaviour again. 
Hon David Parker 
: I raise a point of order Mr Speaker. I was seeking clarification as to the poll that he wanted to table. [ 
Interruption 
] 
Mr SPEAKER 
: That is not a point of order because the member did not seek leave to table any particular document at all. 
Hon Ruth Dyson 
: He did. 
Mr SPEAKER 
: The member did not raise a point of order and get my approval to seek leave to table a document so no leave has been sought to table a document. The Minister as I heard him was answering the Hon David Parker’s question and I was weighing up in my mind whether what the Minister said could in any shape or form be considered to be an answer. I reflected on the question asked by the Hon David Parker and I felt that given the question maybe it could be considered to be an answer. I think that is where I will leave it.