Shearer David: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeShearer David: Questions for Oral Answer — Questions to Ministers[Sitting date: 04 June 2013. Volume:690;Page:10627. Text is incorporated into the Bound Volume.]2.DAVID SHEARER (Leader of the Opposition) to thePrime Minister: Does he stand by all his statements?Rt Hon JOHN KEY (Prime Minister): Yes.David Shearer: Does he stand by his statement that his Government has a “100 percent record” on the minimum wage; if so how does he explain the now $6-plus an hour gap between Australia and New Zealand after Australia raised its minimum wage to NZ$19.80 an hour?Rt Hon JOHN KEY: Yes. The Government has been raising the minimum wage within the bounds of what we think is possible to ensure that we preserve people’s work. If we look at the minimum wage in New Zealand it is $13.75. That is half the average adult working wage. That puts us at the highest average in the OECD. We also have the significant payments which we have maintained throughout the difficult times of Working for Families. As I pointed out in the House last week if somebody earns $40000—Dr David Clark: The widest gap between rich and poor ever.Rt Hon JOHN KEY: Well you may not want to hear it but if you want to let me give the answer I am more than happy to do so. OK so if you go and have a look at someone who earned the minimum wage of $13.75 an hour for 40 hours per week and who was bringing up three children that person would earn just a touch under $29000 a year. They would pay $4500 in tax and by the time they got their Working for Families payments and accommodation supplements they would receive over another $20000-odd in the hand. That makes New Zealand in the relative scheme of things reasonably generous for at-risk and low-income New Zealanders.David Shearer: Why does he think a minimum wage worker deserves $3 in Australia for every $2 they would earn in New Zealand for doing exactly the same work?Rt Hon JOHN KEY: Firstly there are different issues in each country. There are different costs—the inflation rates being significantly higher in Australia. For a period of time they have had higher levels of interest rates. But one of the most important points is that there is a balancing act here between making sure that people get pay rises and making sure that people do not lose their jobs. If the member believes there is no correlation between the two he is not only demonstrating that he does not understand economics but he is equally free to go and tell New Zealanders on the campaign trail that he wants to put them in the dole queue because that is the simple message you will be sending them.David Shearer: Is he aware that Australia’s unemployment rate is lower than New Zealand’s despite a higher minimum wage; if so does not that confirm the Departmentof Labour’s finding in 2004 of “positive employment responses” to minimum wage increases under the last Government?Rt Hon JOHN KEY: Yes. I am surprised that the member is spending so much time wanting to quote Australia because if one looks at a few things that have happened in Australia recently—let us just look at those. Firstly its unemployment rate is on the way up. Our unemployment rate has been on a track lower. This Government is going to get New Zealand back into surplus by 2014-15; the Australian Government is likely to get back into surplus by only 2016-17. The BNZ believes that this country will grow faster than Australia in the next few years. And I notice that the member does not get on his feet any more and ask about people leaving for Australia and the reason is that they are not leaving in droves any more; they are responding to New Zealand. In fact maybe the member should—Mr SPEAKER: Order! That is a sufficiently long answer.David Shearer: Given that he said in 2008 of New Zealanders leaving for Australia that it was a vote of no confidence in Helen Clark’s Government what does he say to people now given that the number is 43 percent higher today?Rt Hon JOHN KEY: Well yes some people have left for Australia—a lot more—Hon Members: Oh!Rt Hon JOHN KEY: Well I am glad they are cheering because a lot more of them left under a Labour Government numerically. [Interruption] Yes they did—yes they did. By the way if it is such a bad place to live—[Interruption] Well if it is such a—Mr SPEAKER: Order! That is a very unsatisfactory interjection coming from over on that side.David Shearer: Supplementary question.Mr SPEAKER: Supplementary—Rt Hon JOHN KEY: No I have not finished—no I have not finished. And if it is such a bad place to live under such a bad Government then maybe someone with Australian citizenship will want to go back to Australia rather than live under this Government in New Zealand.David Shearer: Is he aware that McDonald’s KFC Starbucks Pizza Hut The Warehouse Farmers Kmart Bunnings and Countdown are not implementing his youth minimum wage rates; if so does that mean that major corporates actually care more about New Zealanders’ cost of living than the Government does?Rt Hon JOHN KEY: Yes I am aware of that. I think the important point to note here is that this is the minimum wage. You are not actually required to pay that wage and the vast bulk of New Zealand workers are paid well and truly above the minimum wage. But here is a very simple point: if you are 16 or 17 under this Government the message is that an employer may give you a chance to get a job. You see these people on the other side of the House they do not want to give employers any incentives—David Shearer: I raise a point of order Mr Speaker. The Prime Minister answered the question in the first sentence. [Interruption]Mr SPEAKER: Order! If the member is happy with the answer then we will proceed to further supplementary questions.Hon David Parker: I raise a point of order Mr Speaker. We have got into the habit of having long speeches from Ministers in answers and it always requires a point of order from us to bring the answer to an end—Mr SPEAKER: No. [Interruption] Order! That is not right and if the member wants to have another look at the recording earlier he will see that I brought the Prime Minister to heel only about two questions ago when I felt the answer was quite long enough.