Minimum wage

Press, 6 September 1989, Page 20

Minimum wage

Sir,—Ken Brougham’s arguments as to how, if minimum wage regulations were abolished, wages would first fall and then rise again are not convincing. His claim that “any top-up would (and should) only be a transitional scheme” depends on his assumption that the same policies which caused a general strike in Britain in 1926 would lead to full employment in New Zealand in the 19905. I have never denied that Ruth Richardson’s scheme would reduce unemployment. It is simply not the best way to reduce unemployment Winston Peters has suggested a tariff on imports from low-wage countries. That would also reduce unemployment and would increase Government revenue instead of spending it. Mr Brougham calls the minimum wage level "arbitrary.” I would have thought the minimum needed to live on at persent prices anything but "arbitrary.” Such wrong use of words may explain his inadequate thinking. — Yours, etc., MARK D. SADLER. August 31, 1989.