Robertson Grant: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeRobertson Grant: Questions for Oral Answer — Questions to Ministers[Sitting date: 17 June 2014. Volume:699;Page:18531. Text is incorporated into the Bound Volume.]10.GRANT ROBERTSON (Labour—Wellington Central)to the Minister for Economic Development: Does he agree with the Minister of Finance that workers “have a right to expect to see some of the benefits” of growth in the economy?Hon STEVEN JOYCE (Minister for Economic Development):Yes and they are. The average wage has increased by $3000 in the past 3 years to $54700.Grant Robertson: No it hasn’t.Hon STEVEN JOYCE: Yes it has and I sense an oncoming labour cost index discussion. Based on the latest strong economic growth forecast the average wage is forecast by Treasury to increase a further $7600 to $62300 over the next 4 years. Wages are increasing faster than inflation. Average weekly earnings rose 3.2 percent in the last year while the cost of living grew 1.5 percent.Grant Robertson: In light of that answer is an effective 1 percent pay increase a reasonable pay offer this year for workers at the Ministry of Business Innovation and Employment in light of his claims about wage growth?Hon STEVEN JOYCE: Well I thought the member actually understood that Ministers do not get involved in Public Service pay negotiations.Hon Members: Ha ha!Hon STEVEN JOYCE: Well it is an important thing and Mr Robertson often comes down to the House and tries to quote the Cabinet Manual or the State Sector Act and both of those make it clear that Ministers are not to get involved in pay negotiations—unless the Labour Party’s approach now is to go back to the 1970s and to the Federation of Labour and the Minister of Labour sitting down and doing the general wage order.Grant Robertson: In light of that answer what pay offer for Ministry of Business Innovation and Employment staff did he suggest or agree to when he met Ministry of Business Innovation and Employment chief executive David Smol on the afternoon of 4 June? [Interruption]Mr SPEAKER: Order! A question has been asked; I want to hear the answer.Hon STEVEN JOYCE: Well firstly if the member would like to have a look at the Cabinet Manual it says the Minister should maintain the independence of the chief executive’s decision-making process and that is what I have done in this regard. Mr Smol updates me on a range of things from time to time. In terms of a particular day I have no idea but in terms of the particular negotiations that is very much the chief executive’s responsibility.Grant Robertson: Has he discussed with David Smol the specific details of the offer made to Ministry of Business Innovation and Employment staff including at a meeting on 4 June?Hon STEVEN JOYCE: I just told the member that the chief executive has kept me updated. I cannot recall a particular date but I am prepared to accept there might have been a date of 4 June. The point is that he has kept me updated. At all times they are his decisions.Grant Robertson: Did he express a view to Mr Smol about what he would consider to be an appropriate maximum offer that should be made to Ministry of Business Innovation and Employment staff?Hon STEVEN JOYCE: No I do not believe I did. The chief executive updated me as to the progress of negotiations. He is making the offer and he gets to determine it and he consults with the State Services Commission.