Low wage growth underlines National’s barren approach to budget

Struggling Kiwis can’t expect to find any encouragement in this month’s Budget even though latest statistics show the lowest increase in salary and wage rates for almost a decade, says Labour Finance spokesperson David Cunliffe.

“In fact, the opposite is the case. The Budget will do nothing to create jobs to help struggling Kiwi families share in New Zealand’s economic recovery,” David Cunliffe said.

David Cunliffe said the latest Labour Cost Index (LCI) showed salary and wage rates grew 1.5 percent in the year to the March 2010 quarter, the lowest since the year to the September 2000 quarter, when salary and wage rates recorded an identical 1.5 percent gain.

“These figures, on top of rising unemployment during the recession, prove how tough it has been for Kiwi families,” David Cunliffe said.

“National is fixated on providing tax cuts for the rich, and the way it intends to do that is not by growing the economy, but by increasing GST so that those already feeling the pinch will be dealt to again.

“Kiwi families could justifiably expect some relief and understanding from the Government in this month’s Budget, but that’s not National and Prime Minister John Key’s way of doing things.

“Their way is to look after their friends first. That’s why those earning the most will get the biggest benefit out of this month’s Budget. The vast bulk of Kiwis won’t be given any hope whatsoever that better times are ahead,” David Cunliffe said.

“Budget 2010 won’t deliver jobs, and it won’t deliver the growth in our economy that is an essential pre-requisite if most Kiwis are going to share in the bonanza National is about to shower on its friends.”

ENDS

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