Smith Nick: Employment Relations Amendment Bill — First Reading Second Reading 
Smith Nick: Employment Relations Amendment Bill — First Reading Second Reading 
[Volume:651;Page:322] 
Hon Dr NICK SMITH (Minister for the Environment) 
: 
 I am pleased to be part of a Government that is prepared to address all the elements of law that have been holding back this country of ours. Over the last 9 years the Labour Party opposite added at every possible opportunity to the costs and compliance of those businesses that we need as a country to be competitive. I was interested to hear that Phil Goff said he would be holding the Government to account to ensure that it met its promises. Well we very specifically promised we would introduce a 90-day trial period of employment the same as that in Australia and as that which is held in the UK. In fact every developed country includes in their employment law a period of trial.  
I want to set out the reasons why I think this is an important improvement for New Zealand. I acknowledge Labour members opposite. I do not think a single member on the Labour benches has been involved in a small business that has employed 20 people. I could take my entire 10 minutes and list each of the union officials in the Labour Party who believe that the unions are the A to Z of wealth creation. I say to members opposite that this Government’s employment laws are about proper balance and the 90-day trial period is a change that we need to make.  
Let me tell members some of the good reasons for this bill to become law. I served for 3 years as the Minister of Corrections. We all know that the most important element of reducing the reoffending rate for those who come out of prison is for them to be able to get into work. In fact if we look at the statistics of those coming out of prison we see that the reality is that getting back into work is the single greatest factor in reducing their reoffending rate. The very real problem that members opposite do not understand is that a small business of fewer than 20 employees constitutes the vast bulk of businesses in New Zealand. The opportunity of employing somebody straight out of Paremoremo Prison is a very real risk that many employers are not prepared to take even though it is in New Zealand’s interests that a small employer gives a break to a person coming out of prison. It is best for them it is best for New Zealand and it is particularly important if we are to reduce reoffending rates. The reality for many small employers is that they are not prepared to take the risk with those sorts of employees such as new migrants young people and ex-prisoners. That is what makes this 90-day trial period so sensible.  
I know that I am not allowed to use the “h” word but to hear Trevor Mallard raving in this Parliament about the importance of such a bill going to a select committee is truly remarkable. We are talking about the change that is being made in this bill. Did members opposite send the KiwiSaver legislation to a select committee?  
Hon Member 
: No we did not! 
Hon Dr NICK SMITH 
: Oh! Do we hear that? When Labour members were in Government they did not have to send the changes to a select committee. But now that they are in Opposition they have suddenly changed their tune. Oh what double standards! They have not been in Opposition 6 days and they have suddenly changed their view about the importance of measures being sent to a select committee.  
I want to refer to the important checks provided in this bill in respect of the 90-day trial period and I want to commend the Minister for her very balanced and sensible approach. It is right that the 90-day trial period should not be able to be used in areas such as seasonal work. We do not want the situation of a person who does 90 days of work every year for an orchardist in my electorate being determined to be a new employee and put on a trial period every time. That is not right. That would be an exploitation of the intent of the trial period. So I commend the Minister for making plain that the trial period is a one-off and is not to be repeated over and over again.  
I also say to members opposite that it is proper that this bill will not impact on the stand-down period for a person on a benefit—that is if a person who is on a benefit takes up—[ 
Interruption 
] I know that members opposite like having people on benefits. They are the anti-growth party. They are the party of envy. They are the party that would prefer someone was not working rather than being in a trial period. I have yet to hear an argument for all the beating of their chests as to why when the Australian Labor Government has a trial period in its employment law and the United Kingdom has a trial period in its employment law if we are to have an equivalent position in the New Zealand law then that is somehow an awful position to have.  
I really think that this bill exposes just how out of touch Labour is with the wealth-creating small businesses that exist in New Zealand. I expect the human resources manager of a big employer like Sealord’s to have the expertise to ensure that that employer can meet the very detailed and demanding requirements of employment law. But the reality is that businesses employing fewer than 20 people do not have a human resources manager and they have become incredibly risk-averse around employment decisions. This 90-day trial period is just what is needed to give them the confidence to take on those higher-risk employees and give those Kiwis a fair go. The real winners from this bill are not the businesses; it is those people who to get their first step on the rung of the employment ladder—people who come out of prison who come in as migrants or who are applying for their very first job—can be given the opportunity and given— 
Moana Mackey 
: No rights. 
Hon Dr NICK SMITH 
: Oh the member says “No rights.” 
Hon Member 
: She hasn’t read the bill! 
Hon Dr NICK SMITH 
: She obviously has not read the bill. The bill makes it absolutely plain that if there are issues of exploitation in the workforce of sexual harassment— 
Moana Mackey 
: So they’ll just say it’s for another reason. 
Hon Dr NICK SMITH 
: Is the member arguing that if a person on a 90-day trial is sexually harassed then they have no protections? Of course not and the member knows that. That is where her rhetoric is getting away from the facts.  
This bill is about a new Government delivering on its promises. This bill is about giving people like young people a chance to get their first foot on the employment ladder. This bill is about recognising that the engine room of the New Zealand economy is small businesses and rather than having 9 years of extra compliance costs and extra hassle this Government is about supporting small business and creating the opportunities for jobs and wealth creation. I know that members opposite do not care about small business.