Hon Jim Anderton

Member of Parliament for Wigram
Progressive Leader

03 February 2009 Media release

Minimum wage should rise

Progressive MP Jim Anderton is supporting calls for an increase in the minimum wage when the national government discusses the issue next Monday.

He says protecting the vulnerable is the highest priority for managing the global economic recession.

“The government will need to be reassured that increasing the minimum wage won’t cost jobs. And experience of the last nine years shows just that. Unemployment fell to record lows while the minimum wage was steadily increased by over 70% in nine years.

“Increasing the buying power of the lowest income workers makes sense because they are more likely than anyone to spend their income, keeping the money in circulation and boosting the whole economy at a time when it is needed.

“The employer groups calling for a cut in the minimum wage need to look at the Great Depression. The accumulated effect of everyone cutting back was to drive the economy into a deeper hole.

“The government is likely to make some changes to business tax, and depending on the design that could well be helpful. But it would send the wrong message to cut the minimum wage in real terms at the same time,” Jim Anderton said.

ENDS

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