Kiwi income relativity goes backward under National
Kiwi family incomes have fallen further behind Australia for the past 18 months, and the National Government has no credible plan to turn this around, says Labour Finance spokesperson David Cunliffe.
David Cunliffe said that wage growth, measured by the Labour Cost Index, of 1.6 percent this year is down from 4 percent in 2008, and follows the low 1.5 percent last year.
“The Government’s own budget document has forecast a fall in real wages of minus 1.4 percent in 2011 and minus 0.6 percent in 2012,” David Cunliffe said.
"This proves what Labour has been saying all along. Hard-working Kiwi families have been hit by the recession. Many have lost their jobs, are working reduced hours, and have had overtime cut. Some have lost their homes as well.
"The situation will become worse in October when National lifts GST on everything we buy, at the same time as it aims most of its tax cuts at wealthier Kiwis who do not need that windfall.
"With a further 5.9 percent inflation predicted for next year, and no sign of the so-called ‘aggressive’ recovery John Key promised Kiwis, National looks incapable of helping Kiwis get ahead," David Cunliffe said.
"Worse, National is now clearly lurching from one daft idea to another as it attempts to govern by opinion polls. There is no credible strategy to protect jobs or lift Kiwi incomes, as today's numbers prove.
"Mining National Parks, cycle ways to nowhere, selling holidays and firing at will, and flogging off farmland and productive assets, do not add up to a credible plan for jobs and growth,” David Cunliffe said.
"National promised to close the income gap with Australia, but the numbers prove the opposite is happening, and last week National got caught trying to cover up that truth.
"Every Kiwi knows in their gut something is wrong. They face that reality every week.”
