First Impressions By Brendan Horan

Sometimes it is hard to believe the MPs who prop up the National-led government live in the real world – especially when it comes to the wages paid to ordinary working folk. Since 2008 there has been a steady attack on the rights of workers with policies thinly disguised as 'pro-jobs” or some other spin-doctored euphemism.

The minimum adult wage of $13.50 an hour is apparently hindering employment opportunities for the young so a new, lower rate of $10.80 for teenagers starts next April. The government says this move will create 2,000 new jobs over two years.

The problem is the latest Household Labour Force Survey showed 61,700 15 to 24-year-olds were unemployed - up from 41,100 four years ago. So, under the stewardship of Messrs Key and English and Co there has been a fifty per cent (26,000) increase in youth unemployment but they will create 2,000 new jobs over the next two years by reducing pay rates!

This is the sort of twisted logic generated by unscrupulous who believe they can wallow in their wealth while others try to scratch a living. Nobody minds a successful individual enjoying the results of hard work and ingenuity but most New Zealanders believe in the concept of a fair go.

The new youth wage is 80 per cent of the minimum adult wage of $13.50 an hour. This adult wage amounts to $540, or about $455 in the hand for 40 hours work. This is a low wage but many people are still losing their jobs as the economy spirals down.

When National came into office they gave the rich tax cuts and increased GST. The Westpac bank boss on his multi-million dollar salary got a tax cut of more than $5000 a week.

Fairness aside, if we combine this with job-cuts such as Kiwi Rail, IRD and Solid Energy, it begs the question, how do we make up for lost taxes?

When we then add a low wage system to the mix it becomes obvious that this Government is creating a future with a serious shortfall of taxable income.