Butterick MikeMIKE BUTTERICK (National—Wairarapa): I have heard from small and medium business owners across the Wairarapa electorate that are suffering as a result of the last Government's poor legislation. They don't have the same capacity to absorb blanket top-down costs that large businesses do and they're suffering right now from the cost of living crisis inherited from over there that is strangling our communities.Employers within our communities have a relationship with their employees that's built on trust—trust that the employer and employees uphold; trust that they will behave fairly and reasonably to each other. There's trust that rates of pay and working conditions reflect the market the industry and the location. Owners of small and medium enterprises in the Wairarapa electorate have a personal relationship with their staff. They often go to school together. They shop at the same supermarket together. A high level of trust is a feature of the employment in small towns and our rural communities and one that we should endeavour to encourage and support.Crushing small businesses with unnecessary legislation will impoverish businesses business owners and local workers in my electorate. Repealing the Fair Pay Agreements Act will bring some relief to small businesses who are already suffering under the cost of living crisis. Both—[Suze Redmayne passes the member a note]Hon Willie Jackson: Speak from the heart!MIKE BUTTERICK: Thank you for the advice. Both National and ACT campaigned strongly against the introduction of fair pay agreements. Hon Willie Jackson: Oh sit down man—sit down.MIKE BUTTERICK: Thank you for the further advice from over the other side of the House. Businesses need the flexibility—SPEAKER: Excuse me excuse me. I think if the member was aware of the timings that have been agreed by the House he might not have so much to say about the current process. As someone who does ask us to make concessions at various times you know I would ask him to show us some indulgence at this point. I could speak for longer if I had to but I'll go back to Mike Butterick.MIKE BUTTERICK: Thank you Mr Speaker. Businesses need the flexibility to innovate if New Zealand is going to compete on the world stage. We're a trading nation and our economic viability depends on it. Workplace flexibility is also a priority for workers especially workers seeking a better work-life balance. We all want higher wages and better conditions especially during a cost of living crisis. But under fair pay agreements the cost of doing business would have increased and the price of the goods and services that businesses provide would have increased as well.Labour the Greens and the unions said fair pay agreements would be good for workers but they were likely to have the opposite effect. Employers would have hired fewer workers or they would have reduced the number of hours they offered existing workers. Some businesses would have increased their rate of automation reducing their reliance on workers. Some businesses would be at risk of closure.There's been some talk about the Government ignoring advice on this legislation. The most important thing to know about the Ministry of Business Innovation and Employment's advice is that they recommended against introducing fair pay agreements arguing that the improvements for employees would be marginal and would be achieved at a significant cost to employer flexibility and a blunt tool like fair pay agreements would not have been successful at improving employment outcomes for disadvantaged workers. Disadvantaged workers would actually have been made worse off under fair pay agreements because businesses would have hired fewer people or reduced the hours of work offered to existing workers because of the costs imposed on them.Without increasing productivity businesses can only afford so much without having to raise prices lay off staff or close down completely. The previous Government made hiring staff too difficult too expensive and disincentivised employers from taking risks. New Zealand's small and medium businesses are bursting with entrepreneurship creativity and innovation and deserve a Government that empowers them because that's how we create opportunities. Thank you. I commend this bill.