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Home / New Zealand / Politics

Coalition Government repeals Reserve Bank dual mandate, Fair Pay Agreements as 100-day plan agenda ramps up

Michael  Neilson
By Michael Neilson
Senior political reporter, NZ Herald·NZ Herald·
13 Dec, 2023 04:00 PM4 mins to read

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Doctors/health specialists marches in both Auckland against the smokefree law repeals. Video / Finn Little

Hundreds of protesters took to Parliament lawn on Wednesday to appeal the new Government’s move to repeal Fair Pay Agreements - one of the cornerstones of the previous Labour government’s approach to employment relations.

Backed by unions, workers chanted outside Parliament as they delivered a 15,000-strong petition urging the Government to keep the legislation in place.

It was one of two protests at Parliament that day - the second regarding the Government’s intention to repeal the world-leading smokefree legislation introduced in the last term by Labour.

That protest delivered a petition of over 45,000 people, calling for a halt to repealing of the laws.

“There’s a protest everyday,” senior National Minister Chris Bishop responded when asked by media if he had been out to see protesters and hear their concerns.

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Inside the House of Parliament, the coalition Government repeated through speeches that despite the protests it had the majority as it set about implementing its 100-day plan, first off finishing the final stages of reverting the Reserve Bank to having a single mandate, which will be to maintain price stability - essentially to keep inflation low.

After a change made by the former Government in 2018, the bank was given a dual mandate: keeping inflation low, and supporting maximum sustainable employment.

Finance Minister Nicola Willis said the new mandate had led to a lack of focus on inflation from the bank.

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Labour’s finance spokesman Grant Robertson, who added the second mandate when he was Finance Minister, told Parliament that it was a “sad indictment” on the new Government that reverting to a single mandate was the first piece of legislation put forward.

Hundreds gather outside the Beehive to protest Govt's move to repeal smokefree legislation. Photo / Azaria Howell
Hundreds gather outside the Beehive to protest Govt's move to repeal smokefree legislation. Photo / Azaria Howell

Next was the aforementioned Fair Pay Agreements, which made it easier for workers to band together to negotiate wages and working conditions and were introduced by the Labour Government just over a year ago.

National and Act opposed it at the time, saying it was “compulsory unionism” that harmed productivity, and campaigned on repealing them through the election campaign.

Workplace Relations Minister at the time, Michael Wood, said it was restoring the collective rights of workers stripped out through the Employment Contracts Act in 1991.

Six sectors have successfully applied to start negotiations - including cleaning, security and hospitality - but none have yet received an agreement.

In repealing them, Minister for Workplace Relations and Safety Brooke van Velden said the agreements were not actually about fairness and instead “forced a minority of union workers’ views on all affected workers and all affected businesses within an industry” and would have seen fewer workers employed.

She said repealing the law would also reduce costs for employers.

“We are doing this bill to send a clear signal to businesses that this Government understands the pressures that businesses have faced in an environment of increasing inflation and a Labour-led Government that has piled on regulations on to businesses that are finding it a struggle to cope.”

Speeches from each side drew fiery debate and interjection from the other, with Opposition MPs using some of the strongest language including “disgusting” and accusing the Government of “sticking the boot into workers”.

Labour’s spokesperson for Workplace Relations and Safety Camilla Belich called it a “very sad day for this Parliament”. She referenced conversations with protesters outside Parliament, part of an “embarrassing low productivity” economy based on low wages.

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“Those people understood that in order for us all to succeed, we need to have secure work, we need to have high wages, we need to have fair conditions, we need to have safe workplaces. Fair pay agreements would have been the mechanism to achieve these goals in New Zealand, and those things are sorely needed.”

Te Pāti Māori’s Debbie Ngarewa-Packer said the law change timing just before Christmas was “disgraceful”.

“You should be ashamed of yourselves and what you are delivering to our whānau just before Christmas.”

Earlier, there was some drama during question time when Green MP Chloe Swarbrick refused to apologise for calling statements made by Prime Minister Christopher Luxon a “demonstrable lie”.

It came amid questions from Greens co-leader Marama Davidson to Luxon about the Government’s climate change policies and recent comments by NZ First Minister Shane Jones, who doubted New Zealand would meet climate change targets.

As Luxon was speaking, Auckland Central MP Swarbrick could be heard saying Luxon’s comments were a “demonstrable lie”.

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Accusing an MP of lying within the House was considered out of order and normally ended in the comment being withdrawn and an apology being offered.

However, Speaker of the House Gerry Brownlee didn’t hear the comment so said it was up to Swarbrick to apologise if she said it. Swarbrick initially refused before claiming that her comment was in reference to the substance of the Government’s policies, not directed at Luxon himself.

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