Little Andrew: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeLittle Andrew: Questions for Oral Answer — Questions to Ministers[Sitting date: 28 May 2014. Volume:699;Page:18395. Text is incorporated into the Bound Volume.]9.ANDREW LITTLE (Labour) to theMinister of Labour: What new measures if any is he considering that will lift pay rates so that all wage and salary earners share in a growing economy?Hon STEVEN JOYCE (Minister for Economic Development) on behalf of theMinister of Labour: The Government is committed to continuing to grow the economy through both the recent Budget and our Business Growth Agenda and ensuring that everyone gets a fair and growing share of the pie. This includes our year-on-year increases to the minimum wage which now sits at $14.25 an hour. The April increase of 50c was higher than the CPI which helps lift the real incomes of the lowest paid while not damaging their job prospects. Job growth in our economy has been strong over the last year and we are seeing in Budget 2014 that this trend is likely to continue with forecasts of average wage growth of $7600 by 2018 and around 170000 new jobs in the next 4 years.Andrew Little: What exactly is intended by the statements in the Ministry of Business Innovation and Employment statement of intent 2014-18 that “We will review employment standards to make sure they are encouraging fair and productive workplaces.” and that “We will also look at the employment framework more generally to ensure it remains fit for purpose …” and will we see more changes to the Employment Relations Act along the lines of those currently being made?Hon STEVEN JOYCE: I think the matters in relation to employment standards are to strengthen the requirements to meet the employment standards in legislation and I imagine the Minister will make announcements in due course about that. In relation to employment relations generally my understanding is that there are no plans for further changes at this point beyond what is already in front of the House.Andrew Little: In view of his claim made previously in this House and indeed the claim made by the Minister for Economic Development today that wage rates have increased 3.2 percent on average last year and in view of reports of for example Universal College of Learning staff settling on a pay rise of 1.25 percent Christchurch port workers settling on a pay rise of 2.85 percent print workers settling on 1.6 percentfor 18 months and many other workers struggling to get a 2 percent pay increase who does he say is getting increases in pay rates of 3.2 percent and more?Hon STEVEN JOYCE: It is not the Government saying that. It is actually Statistics New Zealand saying that average weekly wages are—Hon David Parker: Not correct.Hon STEVEN JOYCE: It is correct. Go and look at it Mr Parker. You are going to go back down your little labour cost index hole again. The reality is that under the quarterly employment survey average weekly wages have lifted by 3.2 percent over the last year.Grant Robertson: It means nothing.Hon STEVEN JOYCE: It is actually significant and it refers to actual wage increases. Members opposite can hate it if they like. They hate success and they hate progress in the New Zealand economy.Andrew Little: Does he accept that when 46 percent of wage and salary earners in 1 year namely last year got no increase in their pay rate achieving a 3.2 percent average increase across all wage and salary earners means that some are getting extraordinary pay rises and could he please tell us who they are?Hon STEVEN JOYCE: It is important the member notes that his premise at the start is actually incorrect. Again members opposite are working off the labour cost index which is only one small element of the overall wage increases for New Zealanders. Wage increases are made up of increases as a result of productivity increases increases as a result of promotion and so on increases as a result of increases in hours worked and increases as a result of inflation which is the only bit that is measured by the labour cost index. Members can wander down here and pretend that that is the actual situation for as many months as they like but it is not.Andrew Little: Why will he not accept that when nearly half the workforce cannot get a pay rise in a growing economy there is something wrong with wage setting in this country and that workers and employers need a better approach than this Government has so far offered?Hon STEVEN JOYCE: No what we have seen in this economy over the last year is 84000 new jobs the fastest job growth rate in a decade. What we have also seen is an average weekly wage increase of 3.2 percent which is well ahead of the cost of living increase of 1.5 percent. If the member thinks that that needs reform well he is entitled to his view but most New Zealanders understand that the New Zealand economy is on the right track. It is going to deliver better job growth and better incomes for New Zealanders in the years ahead provided that that lot does not get control.