7. Question No. 7—Workplace Relations and SafetyHon TODD McCLAY (National—Rotorua) to the Minister for Workplace Relations and SafetyQuestion No. 7—Workplace Relations and Safety7. Hon TODD McCLAY (National—Rotorua) to the Minister for Workplace Relations and Safety: What advice if any has he received on the impact of the 2020 minimum wage increase on job losses?Hon IAIN LEES-GALLOWAY (Minister for Workplace Relations and Safety): I've received no advice that the minimum wage increase will lead to job losses.Hon Todd McClay: Is the estimate of 6500 fewer jobs as a consequence of the increase concerning to him?Hon IAIN LEES-GALLOWAY: It would be if that was correct but the member is wrong. What the advice shows is that there may be 6500 fewer jobs created but what it also shows is the prediction that 43600 jobs will be created this year.Hon Todd McClay: Does it concern him that official advice suggests that the minimum wage increase will impose a $300 million cost on businesses at a time when businesses are already struggling?Hon IAIN LEES-GALLOWAY: I think it's important that we see that money flowing around the economy. At this time when we need economic stimulus one of the best things we can do is make sure that low-income people have money in their pockets so they can spend it in the small businesses in their community.Marja Lubeck: What has happened to the unemployment rate since this Government accelerated increases to the minimum wage?Hon IAIN LEES-GALLOWAY: Well when we came to Government unemployment was 4.7 percent; it is now 4 percent. I can also tell the House that the underutilisation rate has fallen to 10 percent the lowest in a decade and wages are rising at the fastest rate in a decade at 3.6 percent—that's well above the rate of inflation. All of this puts New Zealanders in an excellent position to weather the economic effects of COVID-19.Hon Todd McClay: Has he requested any further or specific advice on the impact of this minimum wage increase on 1 April on job losses as a result of the economic impact of COVID-19 and if not why not?Hon IAIN LEES-GALLOWAY: What this Government is focused on is supporting businesses and workers. That's why we have acted quickly to support the tourism and fishing industries—an extra $4 million for the regional business partner programme as well as support for workers and businesses that they will get from the Ministry of Social Development and IRD. Cabinet has approved work to develop a business continuity package targeted at affected businesses workers and regions. We can get through this without penalising the lowest-paid workers.Rt Hon Winston Peters: Can I ask the Minister: is he prepared to share with the National Party the experience of Lee Kuan Yew's Singapore Taiwan and the five Nordic countries who have denied and decried and destroyed this shibboleth decades ago?Hon IAIN LEES-GALLOWAY: I would enjoy that conversation. I have to say New Zealand is unlikely to take the kind of steps that Singapore used to short the labour market by having extraordinary increases to the minimum wage but we will in a measured way work alongside businesses to ensure that working people in New Zealand get a fair deal and we focus on being a more sustainable more productive and more inclusive economy.Hon Todd McClay: So the answer to the last question was no he hasn't sought any specific advice at all on the impacts of the 1 April minimum wage increase on job losses as a result of the economic impact of COVID-19—no advice at all.Hon Members: That's not a question.SPEAKER: Yeah very good point. Question No. 8 Jenny Marcroft.Hon Todd McClay: I raise a point of order Mr Speaker. I asked him to confirm was his—SPEAKER: No no no you didn't. You said so". So is—Hon Todd McClay: "So has he"—can he confirm?SPEAKER: The member—Hon Todd McClay: "So is the answer"—SPEAKER: No look the member will resume his seat. There was not—Jonathan Hunt used to say it in a way like an old quizmaster and so did Lockwood Smith: the questions start with a question word and "so" is not a question word. Jenny Marcroft.Jenny Marcroft: Thank you Mr Speaker.Hon Todd McClay: I had one more supplementary Mr Speaker.Hon Member: So?SPEAKER: All right. I think in this case it's "slow" but we'll let the member go.Hon Todd McClay: Thank you. Does he agree with the economist Shamubeel Eaqub on the minimum wage increase in respect of COVID-19—and I quote—"I think they should delay it. It will add significant increase to wage costs for hospitality businesses that will be reeling from the tourism fallout and potential recession."?Hon IAIN LEES-GALLOWAY: I note that various economists have had various views. I agree with former BNZ chief economist Tony Alexander who said that delaying the increase would not be the right move because doing so would affect businesses across the economy including those feeling little effect from coronavirus. "It would not be a targeted response and asking people on the lowest levels of earned income to sacrifice"."