Raising the minimum wage to $21.20 is an admission by Labour that New Zealand has a cost of living crisis, National’s Finance spokesperson Simon Bridges says.

“This won’t stop the pain lower income New Zealanders are feeling when inflation is up to its highest level in over thirty years, when petrol is going to $3 and when rents are $50 more a week than last year.

“Despite this huge increase, those receiving it will be no better off than they were a year ago. And it’s cold comfort to millions of other Kiwis who are also being hurt by cost of living pressure.

“The only reason the Government has had to increase the minimum wage this much is to keep pace with the cost of living crisis they have created.

“It’s no coincidence the increase is 6% - almost exactly the same as inflation over the last 12 months.

“This increase is going to be incredibly hard for many businesses who are already struggling – that’s the reality of the mess that Labour have created.

“National knows that what New Zealanders need doesn’t come from the flick of a pen on minimum wage but from an agenda to lift growth and productivity.

“Finance Minister Grant Robertson just doesn’t back Kiwi businesses.

“To deal with the cost of living crisis New Zealand now faces, he needs to rein in his new spending and focus on quality. But with an upcoming Budget where he is planning to increase permanent spending by a staggering $6 billion dollars, the most ever, inflation and interest rates will remain higher for longer.

“Tragically, while Labour now knows we have a cost of living crisis, they don’t know what to do about it. National does.”

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