Sowry Roger: Questions for Oral Answer — Questions to Ministers Questions to Members Questions to Ministers 
Sowry Roger: Questions for Oral Answer — Questions to Ministers Questions to Members Questions to Ministers 
[Volume:615;Page:11508] 
7.  
Hon ROGER SOWRY (National) 
 to the  
Minister of Labour 
: Has he received any reports that the Employment Relations Law Reform Bill will create more jobs; if so who were those reports from? 
Hon PAUL SWAIN (Minister of Labour) 
: 
 The purpose of the Employment Relations Act and the Employment Relations Law Reform Bill is to build productive employment relationships in the workplace. I have had a report from the New Zealand Council of Trade Unions stating that good work relationships can have a positive effect on economic and job growth. However I have also seen a report from the New Zealand Business Roundtable stating that there is likely to be a negative impact on jobs as a result of the reform bill. I have also received reports stating that since the Employment Relations Act was introduced in 2001 New Zealand has had the lowest unemployment figures for almost 16 years. 
Hon Roger Sowry 
: Does the Minister also agree with the Treasury statement on the transfer clauses in the bill which states: “The imposition of this requirement will not just affect the price paid for businesses or contracts but will impact on firms’ investment or expansion decisions.”; if not why not? 
Hon PAUL SWAIN 
: Yes I have seen the comments of Treasury around that matter and the member will know that it is a big issue that I imagine the select committee will consider. However I do note that Treasury did state that overall the impact of the proposed changes to the collective bargaining provisions is assessed as modest. Treasury probably stated similar things in 2001 but the facts did not bear out some of the concerns. 
Hon Mark Gosche 
: Does the Minister recall claims being made that the Employment Relations Act would increase labour costs industrial action and unemployment? 
Hon PAUL SWAIN 
: Yes I do. The fact is that none of those claims have been proved to be correct. As I have said New Zealand has its lowest unemployment rate for almost 16 years. In addition work stoppage figures are steadily declining and it has been confirmed as the Minister of Finance has said that New Zealand is one of the easiest places in the world to start up a new business. 
Peter Brown 
: If nothing else changes and the Employment Relations Law Reform Bill passes as it is does the Minister believe that there will be greater incentive or less incentive for employers to engage people permanently or casually—or does he not know? 
Hon PAUL SWAIN 
: It is too early to say that there will be no changes to the bill. That is what the select committee is doing. I think the member is a member of the committee; he will hear the arguments. Ultimately the committee’s report will come back to Parliament about the views that have been expressed by the people who came to the committee. 
Hon Roger Sowry 
: Does the Minister agree with the Treasury paper of 21 March 2003 on the transfer clauses which states: “Increasing the cost of workforce adjustment will lead to a greater reluctance to hire workers.”; if not why not? 
Hon PAUL SWAIN 
: I have seen many of those Treasury reports over the years. I imagine that they stated similar things a couple of years ago and of course the reality of what has happened is that we have high employment growth at the moment in New Zealand. 
Hon Roger Sowry 
: Does the Minister have any evidence that the Employment Relations Law Reform Bill will increase employment or is he just choosing not to agree with the Treasury paper because it is from Treasury? 
Hon PAUL SWAIN 
: Of course evidence around things that may happen in the future is not possible to get but the reality is that those claims were made in 2001 as the member has stated and what has happened is that employment growth is high and unemployment is at its lowest level in 16 years.