Greens' policies good mix for jobs, living standards and environment

Green Party economic policies are a welcome mixture of measures to combat growing income inequality and to develop the economy in sustainable ways, says Bill Rosenberg, CTU economist.

"Importantly, the policy recognises the high levels of income inequality in New Zealand and therefore supports strengthening collective bargaining, raising the minimum wage immediately to $15, removing 90-day trials, and implementing international standards for employment. It also proposes progressive energy pricing which would lower costs of energy to low income earners," Rosenberg says.

Green Party policies to keep the SOEs in public ownership while using them to develop the economy, and strengthening government procurement to help local industry are positive policies that the CTU can support, Rosenberg said.

"However use of the SOEs in this way will need carefully designed safeguards to ensure they don't put public investment at risk and their management does not take its eye off the main objectives such as stable, low cost, environmentally sustainable electricity supplies."

The CTU also welcomed the willingness of the Greens to look at new monetary and exchange rate policies and their support for a capital gains tax, exempting the family home. "Boosting Kiwibank is another sensible step to improve the quality of competition in the banking sector. We would support them going further to reduce New Zealand's vulnerability to international financial markets and to increase the quality of overseas investment here."

"Building energy-efficient state and community houses, jobs to improve our environment and rescue polluted rivers, and encouraging forestry are all positive ways to create worthwhile jobs creating assets the community needs while working to make New Zealand's economy and environment more sustainable. They are particularly timely when there is still high unemployment with a fragile economic outlook."

"The policies to encourage more research and development and to increase industry training are much needed to boost New Zealand's productivity. This is an area in which much more could be done. Industry training also needs clearer pathways through school to encourage school leavers into these vocations."

The CTU supported moves to make the Emissions Trading Scheme more effective, but said that changes do need to consider the threat of "environmental dumping" - competition from imports which are cheaper because they don't have carbon costs built in. It is also timely to review mineral royalties given their very low levels. "New Zealanders deserve a much bigger slice of the profits from mining their minerals."

ENDS

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