This Government has increased the minimum wage to $12.75 per hour.  The Labour Party, not understanding the basics of economics, has pooh-poohed it.

What they fail to acknowledge is that the best way to raise wages overall is through increased productivity.  Many workers on the minimum wage do not stay there.  They gain experience, new skills, better education, and move up the employment ladder.

In shifting the minimum wage in line with inflation, the Government is being sensible and pragmatic.  The ridiculous call from the Left to take it to $15 per hour ignores the inflationary effects – with interest rates going up and less productivity, not to mention less people in work.

Many businesses are still getting over the recession.  While we’re helping those at the bottom of the employment ladder, it is only a strong package of across the board measures to deliver greater productivity that will help all New Zealanders in the long-term.