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Home / Hawkes Bay Today

Pay packet, not scenery is the key

Hawkes Bay Today
8 Mar, 2005 11:25 PM2 mins to read

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Paul Taggart
It is election year, consequently the number of daft initiatives coming out of Wellington seems to be on the up.
This week's little beauty is a cunning plan to entice Kiwis home to fill job vacancies.
We have a labour shortage in key areas, the benefit system is so generous many
people don't want to get out of bed, so we need immigrants.
But the idea that the current number of Kiwis returning home for a variety of reasons can be expanded to fill major gaps in the labour market is a little naive, as a flood of letters to newspapers throughout the country this week have pointed out.
The point is that most Kiwis left these shores to seek a better life - and a lot of them found it.
The aspects of New Zealand that are being held out as a carrot to encourage our diaspora to return - a pleasant climate, lovely scenery and laid-back lifestyle - were all here when they left.
But what is also the same as when they left is high taxation, a bureaucracy that is a burden to the productive sector, and low wages.
When New Zealand's average annual income is a mere $28,808 a year ($554 a week) before tax, are we really likely to see a flood of skilled workers jetting back from Sydney and London?
The minimum adult wage recently increased to $9.50. That's $380 a week before tax. In Australia the rate is $A12.30 an hour, so can our politicians really foresee the tide of migration across the Tasman turning?
Of course not. It is an election year fantasy designed to draw attention to a successful economy. However, it is a success that has happened despite politicians, not because of them. It is also a success that hasn't trickled down to the workers, but has been retained by those sitting around boardroom tables, many of them overseas.
Perhaps it is an issue a Labour Government should be distancing itself from, not placing at centre stage as it prepares to invite the country to judge its performance.

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