Labour’s economic wrecking ball continues

Iain Lees-Galloway is the latest government minister to care not a jot for Kiwi businesses as he pursues a union-driven industrial relations platform: Quote:

Workplace Relations Minister Iain Lees-Galloway says New Zealand needs a high-skill, high-wage economy and accepts that some businesses will not survive some of its policy changes.

Speaking on TVNZ 1’s Q+A this morning, Mr Lees-Galloway told Corin Dann he wanted to see union membership among workers increase, but the government would not opt for compulsory membership in the Employment Relations Amendment Bill.

“The evidence is very, very strong from around the world that where industries have high union density, where people are covered by collective agreements, their wages rise much faster than the rate of inflation,” said Mr Lees-Galloway.

He accepted that some businesses would not be able to operate under its plans and he said the change would be implemented with enough time for businesses to choose whether they could continue.

“Operating in a global market means that businesses need to be resilient. They need to be able to work with the different market forces,” he said.

“What we as a government have to do is make sure there is an environment in which new businesses can develop; new jobs can be created; and as thing change for people, new opportunities become available for them.”

Mr Lees-Galloway also argued that planned changes to the minimum wage in New Zealand should not be a detriment to strong Kiwi businesses, and if they are then the businesses aren’t resilient enough.

If a small change to the minimum wage is going to be that detrimental to them then they don’t sound resilient,” Iain Lees-Galloway said. End quote.

What an idiot. It doesn’t mean that at all. It means that the job is no longer the mandated minimum wage. Businesses that can will automate. Those that can’t will ratchet up prices until the market tells them that the price is too high and then they close. Either way people will lose jobs, but it seems Iain Lees-Galloway is OK with that.?Quote:

National spokesperson for workplace relations Scott Simpson issued a statement in response to Mr Lees-Galloway’s comments on Q+A today. “Workplace Relations Minister Iain Lees Galloway?s gob-smacking high-handed attitude to small and medium sized Kiwi businesses on TVNZ?s Q&A this morning will do nothing to boost sagging business confidence or employment and wage growth,” Mr Simpson said.

“It’s the height of arrogance to say that Kiwi businesses don?t know what they are doing if they struggle to cope with some of the highest minimum pay rates in the world. Mr Lees Galloway writes them off by saying businesses ‘come and go’.” End quote.

What an appalling policy outline from Lees-Galloway. My longest-standing friend in caucus, Scott Simpson, is right to call him out. Like all typical unionists he looks at businesses and all he sees are fat cigar-smoking bosses, and therefore he doesn’t care if the companies disappear. But each one of those companies has employees and if their business disappears then so do their jobs. All around the world the evidence of stroppy unions destroying businesses is before us. In Australia, unions destroyed their car industry. In the US, unions have destroyed massive companies through their never-ending demands for increased entitlements. I bet there is one group of workers who will feel very safe for their future employment… parliament’s stenographers.

Moreover, Iain Lees-Galloway needs to remember what Princess Cindy-pants had to say about these changes last year:?Quote:

Prime Minister-designate Jacinda Ardern says she will ease the pressure of higher wages on small- to medium-business owners, including looking at a lower company tax rate.

As part of its deal with New Zealand First, the incoming Government will raise the minimum wage from $15.75 an hour $16.50 next year, and then to $20 by April 2021.

The increase is raising concerns in the business community and among farmers about meeting higher costs.

Speaking to Radio NZ’s?Morning Report, Ardern said she wanted a tax working group to look at how Australia’s stepped tax regime operates.

“They have a slightly lower corporate tax rate for companies and businesses that have lower turnover. I’m interested in how we can ease the burden on small businesses in particular.

In Australia, companies with turnover of less than $10 million a year pay a lower company tax rate.

“This is me foreshadowing that I do have a genuine interest in how we can support those who create jobs in New Zealand,” Ardern said.

“In large part, our small and medium enterprises – well over 40 per cent of our new jobs – are coming from our SMEs. I want to do all I can to work in partnership with them.End quote.

So, it seems either Jacinda Ardern was telling fibs back them, or they’ve decided to throw small business under the bus.

My pick is the second option. So much for working in partnership with them.