12. Question No. 12—Workplace Relations and SafetyHon PAUL GOLDSMITH (National) (remote) to the Minister for Workplace Relations and SafetyQuestion No. 12—Workplace Relations and Safety12. Hon PAUL GOLDSMITH (National) (remote) to the Minister for Workplace Relations and Safety: What additional costs have been imposed on businesses if any as a result of Government decisions since November 2017 for which he is responsible and what impact if any have those additional costs on business had on the cost of living?Hon MICHAEL WOOD (Minister for Workplace Relations and Safety): I reject the premise of the member's question that Government decisions have imposed costs on businesses that have contributed to the cost of living and I note that the Ministry of Business Innovation and Employment's modelling indicates that the inflationary impacts of policies like minimum wage increases are very limited—and this was in fact modelled at just 0.12 percent this year. Our Government has sought to build a modern and fair workplace relations environment through policies like increasing sick leave entitlement to 10 days per year increasing paid parental leave from 18 to 26 weeks and increasing the minimum wage from $15.75 in 2015 to $21.20 in April of this year. The benefits of these policies are far-reaching—for example a minimum wage worker working 40 hours a week in 2017 compared to 1 April this year will receive $218 a week more and we've achieved that while keeping unemployment at record low levels. On this side of the House we reject the outdated and binary view of workplace relations in which any investment in the workforce is seen as a negative for business. We believe that fair and decent conditions are a foundation for good workplace relationships and a productive economy.Hon Paul Goldsmith: Is the Minister saying or rejecting the idea that increased costs to businesses inevitably flow through to costs to consumers?Hon MICHAEL WOOD: I'm saying two things. One is I've given a very specific example of the fact that some of the costs that that member and his side of the House regularly cite the minimum wage increase—which some of them have supported and some of them haven't supported—this year was modelled at only having an inflationary impact of 0.12 percent and as we've rolled out those increased minimum wage increases we've brought unemployment down to a record low 3.2 percent which is hardly evidence for it strangling businesses as that side of the House claim every single year. Secondly I'm making the point that as opposed to that side of the House which always views investments in a better life for workers as a negative for businesses and the New Zealand economy this side of the House actually has a view supported by plenty of international evidence that good terms and conditions for workers good relationships between employers and unions can actually lead to a better and more productive economy for everyone. Hon Paul Goldsmith: So what does the Minister think happens? Government imposes higher costs on businesses and they magically absorb those costs with no impact on prices—is that what you think happens?Hon MICHAEL WOOD: No that is not what I think happens and I ask the member what he thinks should happen in reverse.SPEAKER: Order! Order! The member does not ask the other member anything; he answers.Hon MICHAEL WOOD: No that is not what I think happens. What I think happens in the economy and under the workplace relation settings of this Government is that we've ensured that workers do have a good minimum wage we've ensured that workers do have a good minimum conditions like decent sick leave and under that workers and businesses have worked productively together we've delivered a growing economy and we've delivered record low unemployment. It's going pretty well and we'll continue to pursue those policies that give workers a fair go that look after the most vulnerable and that bring workers and employers together to develop a fair and productive economy.Hon Paul Goldsmith: Does he think all Kiwi workers deserve a 6 percent pay increase this year like those on the minimum wage have received; and if so what impact does he think that would have on inflation expectations?Hon MICHAEL WOOD: Well as I look around at the performance of some workers I don't think that they probably do all warrant an increase at that level Mr Goldsmith but for the most part we do believe that workers do deserve to receive fair compensation for their earnings. Of course across our system employers workers and unions will negotiate their particular employment relationships but as far as the Government's role is involved we've been very clear that when it comes to the lowest-paid workers those on our minimum wage we will support a decent increase. These are the cleaners the supermarket checkout workers and the bus drivers who have got our country through COVID-19. That side of the House is prepared to see their living standards decline; this Government will support them.Simeon Brown: We'll give you a pay cut next year.SPEAKER: Order! Mr Brown will stand withdraw and apologise.Simeon Brown: I withdraw and apologise.SPEAKER: Mr Goldsmith despite all that noise would you like another supplementary?Hon Paul Goldsmith: Does he accept that with average wage growth for Kiwis of only 2.6 percent in 2021 and inflation running at 5.9 percent the majority of Kiwis who are not on the minimum wage have been going backwards with their wages not keeping up with the rising cost of living?Hon MICHAEL WOOD: What I accept is that under this Government's policies wages whether they are measured by average hourly earnings or average weekly earnings have consistently outstripped increases in the cost of living and that if we follow the policies that member advocates then our most vulnerable workers including those on the minimum wage would see their living standards go backwards.