Mar 7, 2008

Key On Wages

Audrey Young takes on Andrew Little over the Labour Party beat up on Key over his comments on wages in Northland.

There is a certain amount of rubbish being pedalled by the Engineering Printing and Manufacturing Union about the Herald's involvement in the saga over whether or not John Key told the Bay Report in Northland he wanted wages to drop. National secretary Andrew Little is entitled to ask questions but they should be based on facts. Amid many questions in a press statement today headed "Has National muzzled the press?" he asks why the Herald is publishing a "correction" ahead of a Bay Report "correction" on the story. That is false.

The problem with this Key wages story from the start is that the transcript of what Key said appears to be contradictory. Key does say he wants to see wages drop but in the next breath he says he wants to see them rise. Key was recorded by the Bay Report reporter in a Kerikeri cafe last year as he was talking to the Kerikeri District Business Association President, Carolyne Brooks-Quan. Key knew he was being recorded by a reporter. The political backdrop is that Key has repeatedly said he wants New Zealand wages to rise. What the transcript says it this (the tape has been wiped): Brooks-Quan: There's been a lot surrounding the exodus of people to Australia that are lured by higher wages. There are some calls here for employers to pay more. What's your take on that? Key: We would love to see wages drop. The way we want to see wages increase is because productivity is greater. So people can afford more. Not just inflationary reasons, otherwise it's a bit of a viscous circle as it come back to you in higher interest rates. We really want to drive that out. Not what you would call and open and shut case, is it?