19 February 2008 Media Statement

Key “would love to see wages drop”

Despite regularly claiming that National would raise wages if in office, John Key has admitted that he would like to see wages drop.

When asked what he would do about the wage gap with Australia John Key told an audience in Kerikeri just before Christmas that,

“We would love to see wages drop.”

Just last week when asked by Morning Report what he would do in office he said,

“Firstly, we will raise wages.”

Finance Minister Michael Cullen has called for John Key to say which statement he actually believes.

“Which is it Mr Key?,” Dr Cullen said. “Should we believe what you told a business audience in the Far North or what you have been telling national media for months.

“The Labour-led government wants wages to increase for all workers and we do want productivity-led wage growth. That’s why we’re cutting taxes for business and working with unions and employers on improving skills.

“But we also stand by our record of raising the minimum wage and encouraging a fair labour environment where workers and business share the benefits of economic success.

“What we will not do is tell private business audiences in the Far North one story on wages, and tell another one to national media.

“Just like with doctor’s visits where John Key hailed the power of the market, his comments on wages show what he really believes.”

ENDS

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