7. Question No. 7—Workplace Relations and SafetyHon SCOTT SIMPSON (National—Coromandel) to the Minister for Workplace Relations and SafetyQuestion No. 7—Workplace Relations and Safety7. Hon SCOTT SIMPSON (National—Coromandel) to the Minister for Workplace Relations and Safety: What is his response to Treasury's advice that implementing a Fair Pay Agreements regime will have uncertain implications for productivity and that there is minimal empirical evidence for the problem or policy response" it seeks to address?Hon MICHAEL WOOD (Minister for Workplace Relations and Safety): Sector level bargaining of which fair pay agreements are a kind are recommended by the OECD and are commonplace in many advanced prosperous economies like Australia Singapore and large parts of Europe many of whom have a stronger productivity record than New Zealand does. In answer to the second part of the member's question I would encourage the member to read the report put out by the Rt Hon Sir Jim Bolger and the—SPEAKER: Order! Order! He's certainly not a knight. Hon MICHAEL WOOD: Yes thank you Mr Speaker—the Rt Hon Jim Bolger who produced along with a range of others a Fair Pay Agreement Working Group report which shows that while New Zealand has experienced economic growth and productivity growth over the last 30 years the share of that going to people—working people—has declined over that period. This is the graph reproduced from that working group report. That is the fundamental problem that we are trying to resolve. After 30 years of a trickle-down model that has failed to deliver for working people and that has not produced the improved productivity performance that was promised we say that it's time for a new approach. It's time to stop the race to the bottom.Hon Scott Simpson: What is his response to Treasury's advice that fair pay agreements may make substantial changes to the economy and risk widespread negative effects on employment?Hon MICHAEL WOOD: In respect of making changes to the economy this Government is a Government which does propose to make changes which benefit those people who are currently being left behind. After the year of COVID in which we have been reminded of the value of the cleaners the bus drivers the supermarket checkout workers—people who have to exist at barely over a minimum wage—we believe it is time to make a change so that those people's terms and conditions are not driven down by competitive processes. We quite happily stand up and say that we support that change. The other side of the House may be happy with it but we're not.Hon Scott Simpson: Does he consider that Treasury's concerns about there being minimal empirical evidence for implementing a fair pay agreements regime could possibly relate to his plans that would allow just 10 percent of workers in a sector being able to force the other 90 percent into the regime?Hon MICHAEL WOOD: I don't think those two points are related at all.Hon Scott Simpson: Does he consider that Treasury's concern about there being minimal empirical evidence for implementing a fair pay agreement regime could relate to his plans that would see a small business in Invercargill having the same conditions imposed on them as a major employer based in the Auckland CBD just because they're operating in the same sector?Hon MICHAEL WOOD: I'd make two points in response to the member's question. The first is that I believe that Governments which are elected on manifestos that have a mandate to govern need to listen to the advice that is given by officials and to carefully consider it but also to listen to the advice and views that come through from a range of stakeholders and to hold faith with the commitments they made when they were elected. So members on that side of the House might think that it's a good way to govern—to just go along with whatever the officials tell you. We actually bring a range of wider considerations into the mix. Secondly I would encourage the member to actually read the policy which has been put out. He might be too busy at the moment reading Simon Bridges' biography—SPEAKER: Order! Order! The member will resume his seat."