Saturday, 4 October 2008

National rejects NZ/Aussie wage gap figures

RADIO NEW ZEALAND:The National Party has rejected Treasury figures which show the gap between New Zealand and Australian wages has narrowed slightly in the last nine years.

A Treasury paper obtained by Radio New Zealand under the Official Information Act finds that in real terms Australian wages were 28.4% higher than those in New Zealand in 1999; but are now 27.6% higher.

The paper estimates the wage gap blew out by 50% between 1990 - 1999, but closed by 2.6% in the last nine years.

Labour's finance spokesman Michael Cullen says the figures show there's been little change between gross wages in both countries.

ACT leader Rodney Hide accepts the gap between trans-Tasman wages, often cited as a reason for the number of New Zealanders migrating to Australia, has not worsened under the Labour-led Government.

However both he and the Labour Party's finance spokesperson Michael Cullen agree there is still a large wage gap, and it needs to be narrowed.

National Party finance spokesperson Bill English rejects the figures, saying the Treasury itself warns they are not reliable.

Mr English says Labour is massaging the figures to suit itself, and voters are very aware of the attraction of Australia because of its higher wages.

He says the trans-Tasman wage gap is getting bigger, particularly if people look at after-tax wages in both countries.

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