ACT Calls On National To Support Youth Wage

National should follow Minister for Social Development and Employment Paula Bennett’s lead and announce its support for a youth minimum wage after Ms Bennett said during question time in the House today that she would prefer a young person to earn $10 an hour than be on the dole, ACT MPs Sir Roger Douglas and Hon Heather Roy said today.

“My question to Ms Bennett asked whether she would prefer a 16 year old to earn $10 an hour – $400 a week – or $150 a week on the dole. After some confusion Ms Bennett admitted that she ‘would always rather see the young person in work’ – giving her support to youth rates as a way to assist young people into work,” Mrs Roy said.

“Scrapping the youth wage priced young people out of the market. Ms Bennett was saying what we all know; that it is better to have a low paying job than none at all. Sadly when you force young people to compete with older, more experienced workers the effect is that many of them are left with no job at all.

ACT New Zealand Finance Spokesman Sir Roger Douglas said that with Ms Bennett’s admission in the House now was the perfect time for National to commit to supporting his Minimum Wage (Reduce Youth Unemployment) Bill, which would reinstate the youth wage.

“I announced this week that I would resubmit the Bill because the youth unemployment rate is at 27.5 percent, the highest it has ever been. This translates to nearly one in three young people and almost two in five young Maori out of a job,” Sir Roger said.

“There is nothing caring about forcing young people on to the scrapheap of unemployment. Economist Eric Crampton has calculated that there are over 12,000 unemployed young people who could expect to be in work if youth rates were reinstated.”

“In light of Ms Bennett’s support for young people to be in work we look forward to National coming to its senses and agreeing to reinstate a youth minimum wage,” Sir Roger Douglas and Heather Roy said.