Erratic English loses plot on wages

Finance Minister Bill English has lost the plot, pushing the case for New Zealand to be a low-wage economy, says Labour’s Finance spokesperson David Cunliffe.

David Cunliffe said the Finance Minister’s comments at the Australia-New Zealand Leadership Forum and on a weekend television programme have raised huge concerns about the Government’s lack of a plan to create jobs and raise incomes.

“Bill English, John Key and company promised in 2008 to close the wage gap with Australia. They have failed. Instead it has blown out to more than 34 percent.

“Rather than honestly admitting that failure --- surely even Bill English can’t believe in himself any longer ---- and adopting a plan to lift wages and growth, National is trying to spin its way out of its embarrassment.

“By arguing the advantages of a low-wage economy, Bill English has turned into a dead end street, and sadly he’s taking hundreds of thousands of Kiwis with him. I don’t know any low-wage Kiwi who sees that status as an advantage!

“We will never, and should never, aim to compete with an emerging Asian economy on low wages,” David Cunliffe said. “To do so would be a social and economic tragedy.

“Mr English’s comments have become increasingly erratic over recent weeks. He has:

Wanted to borrow the entire cost of earthquake recovery, and now plans a ‘zero budget’;
Advocated austerity, but funds seat-warmers for his BMW fleet, a tupperwaka for Pita Sharples, and sly deals with media companies and film studios;
Blew the budget for South Canterbury Finance by more than $700 million, largely through his own poor decisions;
Gave a blank cheque to AMI, without knowing the costs or the state of the company.
“All the while Kiwis are doing it tough, and finding it harder to make ends meet,” David Cunliffe said.