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Polity: Minimum wage rises do not cause unemployment

Written By: - Date published: 10:00 am, July 16th, 2014 - 48 comments
Categories: Economy, minimum wage, wages - Tags: , ,

polity_square_for_lynnReposted from Polity.

There was a fascinating review of new research into minimum wages in The Age last week, written by the Sydney Morning Herald’s business editor:

When the Fair Work Commission announced a 3 per cent increase in the national minimum wage to more than $640 a week – or almost $16.90 an hour – from last week, employers hinted it would lead to fewer people getting jobs and maybe some people losing theirs.

And to many who’ve studied economics – even many professional economists – that seems likely. If the government is pushing the minimum wage above the level that would be set by the market – the “market-clearing wage” – then employers will be less willing to employ people at that rate.

That’s because market forces set the market rate at an unskilled worker’s “marginal product” – the value to the employer of the worker’s labour.

Almost common sense, really. Except that such a conclusion is based on a host of assumptions, many of which rarely hold in the real world. And over the past 20 years, academic economists have done many empirical studies showing that’s not how minimum wages work in practice. They’ve also developed more sophisticated theories that better fit the empirical facts.

The reason the “higher minimum wages cause more unemployment” argument is so influential is that it is based on Econ101 models. Because so many of us took Econ101, they are intuitive.

The basic Econ101 (perfect competition) idea is that with heaps of available workers and heaps of firms hiring and price being the only bargaining chip and perfect information everywhere, firms will end up paying workers exactly what they are worth. If a worker demands more than that, they get fired and can’t find another job anywhere. If a firm pays less than that, all their workers quit for better jobs across town, and they cannot hire anyone else.

That, obviously, is a cartoonish fantasy world.

In the real world, it’s a bit more complicated. In most low wage sectors of the economy, firms are better equipped than workers to handle employment interruptions.1 And this has big implications for the impact of wage laws such as the minimum wage.

For example workers, who often face tight household budgets, cannot afford to go without getting paid for more than a couple of weeks. Beyond that, there are real consequences for their ability to house and feed their families. Firms, on the other hand, can often carry a temporary labour shortage without it crippling the enterprise.

This means firms are more powerful than individual workers in pay negotiations, with the result that the eventual pay rate ends up below the perfect competition equilibrium. (There are plenty of other, similar, fictions in the low-wage labour market, most of which point in the same direction – more power for the firms, less for the worker.)

This is where things get interesting:

If firms are paying workers less than their marginal value to the company, then a government demand for higher wages should not lead them to lay anybody off, so long as the new minimum wage demand is not higher than the worker’s marginal product.

The key calculation for the firm is not “do I have to pay this person more than I did last week?” It is “do I have to pay this person more than they contribute?” If a firm pays $14 an hour to people who produce $20 an hour of productivity, then raising the wage rate to $15 an hour won’t cause anyone to get the sack.

That is what the Australian research quoted in The Age / SMH has found.

Earlier this year, more than 600 US economists – including seven Nobel laureates – signed an open letter to Congress advocating a $US10.10 minimum wage. They said that, because of important developments in the academic literature, “the weight of evidence now [shows] that increases in the minimum wage have had little or no negative effect on the employment of minimum-wage workers”.

The first such study, published by David Card and Alan Krueger in 1994, compared fast food employment in New Jersey and Pennsylvania after one state raise its minimum wage and the other didn’t. They did not find a significant effect on employment.

Since then, many similar US “natural experiments” have been studied and have reached similar findings. In Britain, the Low Pay Commission has commissioned more than 130 pieces of research, with the great majority finding that minimum wages boost workers’ pay but don’t harm employment.

This may appear alien to many of us, who have had “if the price goes up, the quantity demanded will fall” beaten into us since high school.

But the world is not nearly as tidy as that, allowing the community to protect the dignity of low-wage workers without costing them their livelihoods.


 

  1. For some very high wage workers, however, the opposite is true.

48 comments on “Polity: Minimum wage rises do not cause unemployment”

  1. shorts 1

    the world would be a better place if we stopped listening to economists – end of story

    • One Anonymous Bloke 1.1

      Disagree, rather: their advice comes with a large confidence interval.

    • Draco T Bastard 1.2

      The big problem with economists as that they have NFI WTF the economy is focusing solely upon the the movement of money to produce a profit. This is why our economy is destroying the Earth’s environment and the economists tend to whinge about how much it’s going to cost to stop doing that.

      • One Anonymous Bloke 1.2.1

        The problem with Economists is that they tend to make wild sweeping generalisations that ignore individual circumstances and ethics.

        A bit like this comment thread.

    • Tom Jackson 1.3

      Google the Second Best Theorem. Economics is quite reasonable. It’s just that people tend to ignore that theorem and treat marketisation as an ideal.

      • blue leopard 1.3.1

        It is economists who have pushed ‘marketisation’ as an ideal.

        • Tom Jackson 1.3.1.1

          No it isn’t. It’s some economists, and those people should know better.

          Economic analysis is incredibly useful in many situations. It also has limits. The Second Best Theorem expresses one of those limits (an extremely important one).

          It’s simply true that a perfectly free market would be perfectly efficient: that is a mathematical proof. But the perfectly free market premised in that proof could never exist in reality. But just because a perfectly free market is perfectly efficient, it does not follow that an almost perfectly free market is almost perfectly efficient, or that making any market freer necessarily makes it more efficient. To argue that it does is to commit a basic logical fallacy. Yet this is the fallacy that the free market maniacs commit on a regular basis.

          Sure, in some cases marketisation increases efficiency, and in others it doesn’t. We can’t establish that on the basis of abstract models – we have to do actual, empirical research. Once you accept this, economic analysis stops looking like bullshit and starts looking like part of common sense.

          • framu 1.3.1.1.1

            i would say its MOST economists – well the ones the public hears from anyway

            “It’s simply true that a perfectly free market would be perfectly efficient:”

            theoretical or real?

            in reality thats hogwash – and to a point that anyone using it in any fashion, theoretical or otherwise should be ashamed

            • Tom Jackson 1.3.1.1.1.1

              theoretical or real?

              This shows that you didn’t even read my post.

              Once more with feeling. Yes, it is mathematically proven that a perfectly free market is perfectly efficient. This was proven back in the 1950s. It’s an important conceptual discovery.

              But the Second Best Theorem (proven not long after) shows that you can’t apply this to the real world as an ideal to be approximated to. It’s fallacious to claim that because a perfectly free market is perfectly efficient, that increasing market freedom generally increases efficiency.

              http://en.wikipedia.org/wiki/Theory_of_the_second_best

              WTF is wrong with you? Here you have standard economics explaining to you exactly why free market fundamentalism is wrong, and not only wrong, but logically fallacious in a completely glaring way, and you won’t accept the admission.

              • Draco T Bastard

                I came the conclusion awhile ago that economics, as it’s taught in schools today, is nothing more than a justification for capitalism. I came to this conclusion because of the many false assumptions and logical fallacies that are taught as gospel in economics. Then throw in the simple fact that it just doesn’t work.

                A few people accumulating all the wealth must result in:

                1. A return of feudalism and
                2. An increase in poverty for the many

                Now you come along and say that the perfect free-market can’t exist and approximating it won’t result in better efficiencies. So, why isn’t that taught as economics 101? Because it obviously needs to be.

                • Tom Jackson

                  I think it’s still taught to economics majors. YMMV.

                  • Draco T Bastard

                    Something so critical needs to be taught right at the beginning. But I suppose saying This is the model that we’re teaching and, BTW, it doesn’t work probably wouldn’t get too many students in to pay fees.

                  • Yeah this is critical enough it needs to be in a 101 course, as it completely overturns the conclusions you’d come to in applying economics properly.

              • framu

                which proves you didnt read my post – so WTF is wrong with you right back atchya 🙂

                “in reality thats hogwash – and to a point that anyone using it in any fashion, theoretical or otherwise should be ashamed”

                i accept the admission – im actually agreeing with you, sort of

                my point is that the first theory is such monumental bullshit that there shouldnt even be the second best theory to start with.

                “Yes, it is mathematically proven that a perfectly free market is perfectly efficient. ”

                i dispute this – a made up theory might have been proven using math – but thats got nothing to do with markets, people and economies does it – so why does ANY economist give it the time of day in the first place?

                its like expecting scientists to have a theory for turning lead into gold thats been proven mathmatically, but which doesnt actually work, having to use a second theory to tweak it. When they should have just thrown the first theory out the window.

                theres tons of old scientific theories that have been proven to be wrong – do we see scientists hanging on to them and insisting they are still relevant?

          • blue leopard 1.3.1.1.2

            If you wish to posit that a discipline is sound – then that discipline needs to be invulnerable to its most extreme adherents. It would need to have solid safe-guards set up so that it is not captured by some of it’s nuttier disciples. This has not occurred with economics.

            In the last 30 years the most extreme and fairly well proven wrong theories became mainstream in economics. That is why the GFC came as such a ‘shock’. (What was that question the Queen asked again?) The GFC was actually a predictable outcome for ‘some’, however there weren’t enough of those ‘some’ to make a blind bit of difference.

            So I therefore correct you – there were some economists who were taking their discipline seriously and an entire foolish herd that led us galloping off the cliff.

            ….And as I understand it that there hasn’t been a huge shift in economic approaches since the GFC – and that was 6 years ago now – so I take it that ‘herd’ still holds sway.

            • Tom Jackson 1.3.1.1.2.1

              If you wish to posit that a discipline is sound – then that discipline needs to be invulnerable to its most extreme adherents.

              Untrue. Almost no discipline would satisfy this criterion.

              Just because some economists let their politics get in the way of their discipline does not mean that the discipline itself is wrong or distorted.

              The only relevant question is this: does standard economic theory hold that we must marketise as much as possible in order to increase efficiency as much as possible?

              The answer is no.

              Hence, you should direct complaints to particular economists or groups of economists rather than impugning the discipline itself, which doesn’t actually claim what you think it does.

              • blue leopard

                I think I see where you are coming from but, no, I really disagree with what you are attempting to put forward – you appear to be omitting to acknowledge that the entire main stream expression of the discipline was taken over by nutters over the last 30 years.

                I would cite many scientific disciplines as not having had this occur.

                Economics may very sluggishly be responding to the last massive crisis but it is starting to look like it is too captured by those that stand to gain hugely by misinforming us all to come clean as quickly as we need it.

                • One Anonymous Bloke

                  Yes, peer review is slow, and it’s the best thing we’ve got, and you’re forgetting the large bodies of people who are not economists with vested interests one way or t’other.

                  • blue leopard

                    Yes, those vested interests who are not economists, yet who can happily cite mainstream economists because mainstream economists have been so happy to sell-out….(or so it would appear)

                    Are you saying there is a peer review system in economics OAB?
                    If so, that surprises me – that the entire lot of them went rabid all over the same time – amazing!

                    • One Anonymous Bloke

                      Market fundamentalism is practiced in so many countries you can count them on one hand. Mainstream? Pfft.

                    • KJT

                      Part of the problem is that “social science” is a misnomer.

                      This gives the fallacious impression that how society/economies works can be proven with the same certainty as “science”.

                    • blue leopard

                      What is your point OAB?

                      Are you being sarky?

                      Or are you going to explain to me that our country didn’t just sell out half of our nationally owned power companies in the name of the greater ‘efficiency’ that partially privatizing them will provide?

                • Tom Jackson

                  I would disagree with this. The public perception of economics has been taken over in this way, but economists themselves are somewhat of a boring lot.

                  It doesn’t change the fact that absent a firm refutation of the Second Best Theorem, market fundamentalism is nuts.

                  • blue leopard

                    …yeah they are all so boring they fell asleep in front of the t.v. while their discipline became entirely corrupted and irrational…or what? They were too busy counting numbers to notice?

  2. Draco T Bastard 2

    For example workers, who often face tight household budgets, cannot afford to go without getting paid for more than a couple of weeks.

    Most can’t afford to go without work for more than a couple of days.

    But the world is not nearly as tidy as that, allowing the community to protect the dignity of low-wage workers without costing them their livelihoods.

    And the best way to do that would actually be a Universal Income that provides a living income. This would free up the labour market that governments and businesses keep saying they want. Of course, it would also shift the power to the workers as they’d now be able to tell the business owner to go stuff themselves if the business owners were being an arsehole.

  3. Tracey 3

    this is a great analysis of income inequality and class warfare. It is worth a watch

  4. blue leopard 4

    Great post.

    The issue needs to be addressed from the other angle too:

    What is ‘viable’ about a worker being paid wages that don’t cover living costs? Such a scenario is completely unacceptable.

  5. SPC 5

    Of course not, since the global market arrived – the price competitive jobs have already gone.

    The ones remaining are transfer cost jobs or domestic economy service sector jobs – meaning higher wage costs are transferred to business cost onto the consumer.

    The risk to these jobs comes from technology replacement or displacement of transferable service sector jobs (offshore call centres and accounting) not from a higher MW.

    The debate is not about jobs so much as between those for a higher MW and a living wage vs the middle class who object to higher tax (higher public service pay) and rates cost (higher council wages) consequences of this (or consumer cost). The middle class already enjoy the lower cost of imported goods from the loss of local working class jobs but are not used to the well being of the poor being factored into decision-making.

    • Tracey 5.1

      There is also the casualisation of the work force to consider. Increasing numbers in casual work = no holiday pay, no sick leave, on call, no guaranteed hours or days. I know several people who have three casual jobs to try and get a full time wage. Some weeks one or more of the jobs has no work. These people arent on benefits so dont show on those stats but are strugglingon a wing and a prayer.

      • SPC 5.1.1

        And most will still be hit with secondary tax and will be entitled to tax refunds – routinely overtaxed.

    • blue leopard 5.2

      The middle class already enjoy the lower cost of imported goods from the loss of local working class jobs but are not used to the well being of the poor being factored into decision-making.

      True.

      This really shows how the entire theory of ‘everyone going after their own self interests works to benefit all’ is failing miserably.

      The middle class continue to object to the poor being factored into decision-making at all through the convenient propaganda coming from the elite (I guess) that it the poors’ own fault that they are poor.

      It is like noone ever played musical chairs when they were children.

      The middle class rail against any form of assistance to the poor, yet receive direct benefits from that welfare themselves.

      Those on welfare, however find it increasingly difficult to lift themselves out of the rut because unless they happen to score a well paying job they are fairly well much stuck in a poverty trap.

      ‘Well go and get an education’ we hear the middle class cry.

      It must be mentioned that it is getting harder to raise oneself out of such poverty traps by education because a majority of New Zealanders keep voting in parties that remove the ability to take up education such as this government has. And education is becoming less of a fix-all as far as gaining a job goes because more money is being made on money than productivity. Making money on productivity is less ‘viable’ as far as profits go these days. So to hell with creating jobs.

      Whilst people continue to be so receptive to faulty ideas, lies and propaganda I guess we are simply left to sit back and watch what a complete sham the whole idea of ‘everyone following their self interests is a sufficient principle to create a society that serves us all’ by witnessing the whole thing collapse with the backdrop of the cries of the ‘middle class’ fueled by the elite screeching about how hardly done by they are because they have to pay prices that allow for wages that cover workers’ living costs or pay higher taxes.

      May as well just start stocking up on popcorn for the event -be quick though – the spectacle has already begun.

      • Draco T Bastard 5.2.1

        And education is becoming less of a fix-all as far as gaining a job goes because more money is being made on money than productivity. Making money on productivity is less ‘viable’ as far as profits go these days. So to hell with creating jobs.

        And all of that is why we had all those rules about importation before. It forced jobs to be created in new sectors as increasing productivity reduced jobs elsewhere.

        It really is possible and economic for a country to be fully self-sufficient needing only to import and export the knowledge from R&D.

        • blue leopard 5.2.1.1

          …yeah…it really is possible if the members of our society weren’t so taken with the idea that the poor are victims of their own poor choices rather than what is really the case – that of being victims of foolish self-interested and/or short-sighted government, business, and the-most-privileged-people-in-our-societies’ choices.

  6. aerobubble 6

    Going to the mall today. Its going to cost more to get there, as they are placed at a distance and are large places to get round. Whats more, they are glitzy places, and of course I’m paying more to go to this sparklingly new looking facade. Basically as a consumer I’m supporting the retail space owners property value, and a lot of PR firms, distributers networks etc. So of course I’m going to believe an economist who says that every extra dollar someone on minimum wage earns extra an hour isn’t going to boost retail asset prices, isn’t going to lead to more people being employed to come up and ask if I need anything, or be sucked out of my wallet electronically. No, the idea doesn’t mess with the propaganda, that we are regaled by, relentlessly, that sees the vast bulk of our spending already maintain these temples to consumerism. Please, anyone with an ounce of sense knows that power supports itself, that wealth will inevitable speak louder and drown out the poorer voices. And as we see in economics, the idea that unemployment rises if the minimum wage rises is straight out of the mouths of wealth holders rather than the retailers who want consumers with more cash to spend (as they are so good at getting us to part with it buying crap).

  7. SPC 7

    The ability of an employer to import workers suppresses the market wage in the domestic economy – it prevents shortages increasing wage price.

    Also the inability of a worker to leave a job voluntarily and get income support means they are dependent on the availability of another job to push up the wage for the job they are in – as the economy has a RB with the prime function to suppress wage price demand by keeping a reserve of unemployed workers, this is virtually impossible.

  8. Jrobin 8

    DTB, yes in theory. But wouldn’t everyone have to swallow a big drop in living standards? Every pragmatic politician knows this would be electoral suicide. People are too selfish to change. Isn’t this the crucial missing link in all radical solutions. Look at Capital gains as an eg. Its taken years to start to be accepted despite the damage to the economy.
    Middle Nz would never vote for such perceived radical solutions so they won’t happen. Unless you can organise a monarchy with you as head. I’m not being sarc, democracies mean change is incremental.

    • Draco T Bastard 8.1

      But wouldn’t everyone have to swallow a big drop in living standards?

      No. I figure it would increase living standards while also increasing sustainability and using our economy better.

      Middle Nz would never vote for such perceived radical solutions so they won’t happen.

      An interesting point but middle NZ didn’t actually vote for the radical policies that we got from the 4th Labour government on wards. Before that we did try to be as close to self-sufficient as possible and we had one of the highest living standards in the world.

      • KJT 8.1.1

        No country in history has had a successful economy, without a healthy internal economy.

        Sacrificing an entire economy for the export success of one commodity has never worked for more than the short term. A problem that many oil producing countries are well aware of.

  9. Jrobin 9

    You mean manufacturing cars here and so forth? 1970’s do you mean? But we also paid farmers massive subsidies to keep them economic. Might work for manufacturing from wool, wood, meat, dairy, trains, some tech. But would consumers wear the increases in consumer goods. Admittedly this would be good for the planet if you could sneak it by voters, but could be a one term govt and then be reversed. I guess what you are implying is that you don’t tell them what your policies are at Elections. Is this really ethically justified? Sounds like what National are planning to do this time. They re keeping radical policies quiet so as not to frighten voters. Interesting to consider anyway.

    • KJT 9.1

      We are still paying massive subsidies to farmers, as well as sacrificing workers wages, and the rest of the economy for them.

      • KJT 9.1.1

        As for keeping radical polices quiet to get votes. Labour in 1984. National in 1990 and National, now.

        The problem with our revolving absolute dictatorship.
        We can change the names, but not the policies.

    • Draco T Bastard 9.2

      1970′s do you mean?

      No, not the 1970s. Things have changed and we have learned more.

      You mean manufacturing cars here and so forth?

      We could manufacture cars here. Producing a car here doesn’t cost any more than producing it elsewhere and then shipping it here. In fact, it would use less resources because it would no longer need shipping. A factory in China really doesn’t cost any less to run than the same factory in NZ. Things is, back in the 1970s we didn’t actually manufacture cars here – we assembled them but they were manufactured elsewhere.

      But we also paid farmers massive subsidies to keep them economic.

      We didn’t pay them subsidies to keep the economic – we paid them subsidies to keep them financial. There’s a big difference. Producing more and more sheep/cows/farms here isn’t economic.

      But would consumers wear the increases in consumer goods.

      Haven’t seen anybody complaining about increases in consumer goods yet.

      I guess what you are implying is that you don’t tell them what your policies are at Elections.

      I’m a firm believer in democracy and in that I believe that the people should be consulted, costs and benefits shown and then they vote on it – we don’t leave it to the government.

  10. JonL 10

    Michael Reich and Arindrajit Dube examined employment in several hundred pairs of adjacent counties lying on opposite sides of state borders, each with different minimum wages, and found no statistically significant increase in unemployment in the higher-minimum counties, even after four years. (Other researchers who found contrary results failed to control for counties where unemployment was already growing before the minimum wage was increased.) They also found that employee turnover was lower where the minimum was higher.

    Click to access 157-07.pdf

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    2 weeks ago
  • Another Green win as climate change considerations inserted into the RMA
    The Green Party is thrilled to see changes to the Resource Management Act (RMA) that mean consents for large projects can be declined if they will have significant climate change implications that are inconsistent with the Zero Carbon Act and Aotearoa New Zealand’s Paris Agreement obligations.  ...
    2 weeks ago
  • New Navy vessel Aotearoa to arrive in New Zealand
    Hon Ron Mark, Minister of Defence The Royal New Zealand Navy’s new ship, Aotearoa, set sail for New Zealand on 10 June from the Republic of Korea, and is due to arrive in Auckland tomorrow, announced Minister of Defence Ron Mark. “Aotearoa is the Royal New Zealand Navy’s new fleet ...
    2 weeks ago
  • Racing Industry Bill passes third reading
    Rt Hon Winston Peters, Deputy Prime Minister, Minister for Racing Racing Minister Winston Peters has today welcomed the Racing Industry Bill passing its third reading, creating the legislative framework for revitalising the racing industry while limiting the need for future government intervention. “For too long our domestic racing industry has ...
    2 weeks ago
  • Green Party seek amendment to ensure all prisoners can vote
    The Green Party has today put forward an amendment to the Electoral (Registration of Sentenced Prisoners) Amendment Bill to ensure all people in prisons can vote in general elections. ...
    2 weeks ago
  • Green Party welcomes new approach to delivering light rail
    The Green Party welcomes the decision to not proceed with Public Public Investment (PPI) delivery of Auckland’s light rail project and to instead run the process through the public service. ...
    2 weeks ago
  • New Zealand First welcomes PGF investment in Wairarapa Water
    Hon Ron Mark, New Zealand First List MP based in the Wairarapa New Zealand First List MP Hon Ron Mark welcomes the announcement of Provincial Growth Funding investment of $1.4 million to help secure the Wairarapa’s water supply. The funding boost will allow the Greater Wellington Regional Council (GWRC), and ...
    2 weeks ago
  • New Zealand First MP Mark Patterson selected as candidate for Taieri
    New Zealand First list MP Mark Patterson has been selected to represent the party in the newly formed Taieri electorate at the upcoming election. Mr Patterson, his wife Jude and two daughters farm sheep and beef at Lawrence and Waitahuna. He previously stood in the Clutha-Southland electorate however boundary changes ...
    2 weeks ago
  • Ground-breaking on NZ Post depot
    Hon Shane Jones, Associate Minister for State Owned Enterprises A new ‘super depot’ to be built for NZ Post in Wellington will create around 350 jobs during construction, Associate Minister for State Owned Enterprises Shane Jones says. Shane Jones today attended a ground-breaking and blessing ceremony for the parcel-processing depot ...
    3 weeks ago
  • Week That Was: Putting our economic plan into action
    Our strong economic management prior to COVID-19 - with surpluses, low debt and near-record-low unemployment - put us in a good position to weather the impact of the virus and start to rebuild our economy much earlier than many other countries. Now we're putting our plan to recover and rebuild ...
    3 weeks ago
  • Fleeing drivers hit new record-high yet again
    Darroch Ball MP, New Zealand First Spokesperson for Law and Order Recently released Police fleeing driver statistics have shown yet another increase in incidents with another record-high in the latest quarter. “This new quarterly record-high is the latest in a string of record-high numbers since 2014.  The data shows incidents ...
    3 weeks ago
  • Fletcher Tabuteau selected as candidate for Rotorua
    New Zealand First MP Fletcher Tabuteau is pleased to be confirmed today as the party’s candidate for the Rotorua electorate. Speaking at the Rotorua AGM for New Zealand First, Mr Tabuteau said this is an election that is incredibly important for the people of Rotorua. “The founding principles of New ...
    3 weeks ago

  • New Zealand to review relationship settings with Hong Kong
    Foreign Affairs Minister Winston Peters has announced that the New Zealand Government is reviewing the settings of its relationship with Hong Kong. “China’s decision to pass a new national security law for Hong Kong has fundamentally changed the environment for international engagement there,” Mr Peters said. “New Zealand remains deeply ...
    BeehiveBy beehive.govt.nz
    9 hours ago
  • Funding for Whangārei’s infrastructure projects revealed
    Regional Economic Development Minister Shane Jones has announced details of a multimillion-dollar investment in Whangārei for infrastructure projects that will help it recover from the economic fallout from the COVID-19 pandemic. More than 200 jobs are expected to be created through the $26 million investment from the Government’s rejuvenation package ...
    BeehiveBy beehive.govt.nz
    10 hours ago
  • Managed isolation and quarantine update
    Following a second incident in which a person escaped from a managed isolation facility, security is being enhanced, including more police presence onsite, Minister Megan Woods said. “The actions of some individuals who choose to break the very clear rules to stay within the facilities means that more resourcing is ...
    BeehiveBy beehive.govt.nz
    11 hours ago
  • Funding for Kaipara district community waste programmes
    Waste reduction and recycling programmes in Kaipara are set to get a boost with Associate Environment Minister Eugenie Sage today announcing a $361,447 grant from the Ministry for the Environment’s Waste Minimisation Fund (WMF) Sustainable Kaipara. “The new funding will allow Sustainable Kaipara to partner with local schools, kura, community ...
    BeehiveBy beehive.govt.nz
    13 hours ago
  • Government will support the people and economy of Southland
    The Government will support the Southland economy in the wake of multinational mining company Rio Tinto’s decision to follow through with its long signalled closure of the Tiwai Point aluminium smelter. “This day has unfortunately been on the cards for some time now, but nevertheless the final decision is a ...
    BeehiveBy beehive.govt.nz
    15 hours ago
  • New transformational tools for the Predator Free 2050 effort
    New tools being developed to help boost Aotearoa’s Predator Free 2050 effort were unveiled today by Minister of Conservation Eugenie Sage and Under Secretary for Regional Economic Development Fletcher Tabuteau. A new rat poison, a camera with predator recognition software to detect and report predators, a new predator lure and a ...
    BeehiveBy beehive.govt.nz
    17 hours ago
  • New Armoured vehicles for New Zealand Army
    The Coalition Government has approved the purchase of a fleet of Bushmaster vehicles to replace the New Zealand Army’s armoured Pinzgauers, Defence Minister Ron Mark has announced today. The new fleet of 43 Australian-designed and built Bushmaster NZ5.5 will provide better protection for personnel and improved carrying capacity. “The age ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Community-led solutions to prevent family violence
    The Government’s three prevention frameworks to reduce family violence in Aotearoa were launched this week by Associate Minister for Social Development Poto Williams.   The frameworks were developed in partnership with communities around New Zealand, and build on the work the Government has already begun with its new family violence prevention ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Govt confirms investment in better radiology and surgical services for Hawke’s Bay
    The Government is pleased to confirm funding for improvements to radiology and surgical services at Hawke's Bay DHB, Health Minister Chris Hipkins says.     "The Minister of Finance the Hon Grant Robertson and former Health Minister Dr David Clark approved funding for Hawke's Bay DHB’s redevelopment of their radiology facilities ...
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    1 day ago
  • Specialist alcohol and drug addiction services strengthened across New Zealand
    •    New funding for four beds at Napier’s Springhill Residential Addiction Centre •    A new managed withdrawal home and community service, and peer support before and after residential care at Tairāwhiti DHB  •    A co-ordinated network of withdrawal management services throughout the South Island •    Peer support in Rotorua and ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Coastal Shipping Webinar
    Introduction, seafarers and POAL Good morning everyone, I am delighted to be online with you all today. Before I begin, I have to acknowledge that COVID-19 has disrupted the maritime sector on an unprecedented scale. The work of seafarers and the maritime industry is keeping many economies around the world ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Support for resilient rail connection to the West Coast
    A $13 million investment from Government will create jobs and improve the resilience of the rail connection between Christchurch and the West Coast, Infrastructure Minister Shane Jones and Regional Economic Development Under-Secretary Fletcher Tabuteau say. The funding comes from the tagged contingency set aside in Budget 2020 for infrastructure projects ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Major investment in safe drinking water
    The Government is investing $761 million to assist local government upgrade under-pressure water services across the country, Prime Minister Jacinda Ardern and Local Government Minister Nanaia Mahuta announced today.  The announcement was made at the site of the water bore that was found to be the source of the fatal ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Supporting stranded seasonal workers to keep working with more flexible options
    Recognised Seasonal Employers and migrant seasonal workers stranded in New Zealand will be able to continue working and supporting themselves with more flexible hours and roles, says Immigration Minister Iain Lees-Galloway. The time-limited visa changes are: Stranded RSE workers will be able to work part-time (a minimum of 15 hours ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Relief for temporary migrants, employers and New Zealanders who need work
    The Government is making immediate short-term changes to visa settings to support temporary migrants already onshore in New Zealand and their employers, while also ensuring New Zealanders needing work are prioritised, Immigration Minister Iain Lees-Galloway says. We are: Extending temporary work visas due to expire by the end of 2020 ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Freshwater commissioners and fast-track consenting convenor appointed
    Professor Peter Skelton CNZM has been appointed as Chief Freshwater Commissioner and Alternate Environment Court Judge Craig James Thompson as Deputy Chief Freshwater Commissioner for the newly established Freshwater Planning Process (FPP). Environment Minister David Parker today also announced the appointment of Chief Environment Court Judge Laurie Newhook as the ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Appointment of Judge of the High Court
    Auckland Queen’s Counsel Neil Campbell has been appointed a Judge of the High Court, Attorney‑General David Parker announced today. Justice Campbell graduated with a BCom and LLB (Hons) from the University of Auckland in 1992. He spent two years with Bell Gully Buddle Weir in Auckland before travelling to the United ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Feedback sought – Commercial Film and Video Production Facilities
    The Associate Minister for Greater Christchurch Regeneration, Poto Williams, is seeking feedback on a proposal to better enable the development and operation of commercial film and video facilities in Christchurch. The Proposal, developed by Regenerate Christchurch in response to a request from Christchurch City Council, asks that powers under section ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Govt launches bold primary sector plan to boost economic recovery
    The Government has launched a bold plan to boost primary sector export earnings by $44 billion over the next decade, while protecting the environment and growing jobs. Prime Minister Jacinda Ardern today released Fit for a Better World – Accelerating our Economic Potential, a 10-year roadmap to unlock greater value ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Wellbeing of whanau at heart of new hub
    A new approach to prevent family harm that encourages greater collaboration across government and community groups is being celebrated at the opening of a new facility in Auckland. Prime Minister Jacinda Ardern today opened the Multi-Disciplinary Family Harm Prevention Hub Te Taanga Manawa in Lambie Road in Manukau. The facility ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New Report on Auckland Port Relocation
    The Government has released a major new report on the options for relocating the Port of Auckland’s freight operations while deferring any decision on the issue. “That decision needs to be informed by policy analysis that is still to be completed. As a result it will be up to a ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Dual place names for Te Pātaka-o-Rākaihautū / Banks Peninsula features
    The history of Rāpaki is being restored through the inclusion of te reo in thirteen official place names on Te Pātaka-o-Rākaihautū / Banks Peninsula and around Lyttelton Harbour/Whakaraupō, the Minister for Land Information, Eugenie Sage, announced today.   “I am pleased to approve the proposals from Te Hapū o Ngāti ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government and Air New Zealand agree to manage incoming bookings
    Bookings for seats on Air New Zealand flights into New Zealand will be managed in the short term to ensure the Government is able to safely place New Zealanders arriving home into a managed isolation or quarantine facility, says Housing Minister Megan Woods.  “Last week Air Commodore Darryn Webb and I ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • $80 million for sport recovery at all levels
    Grant Robertson has today announced the first major release of funding from the $265 million Sport Recovery Package announced at Budget 2020.  “Today we’re setting out how $80 million will be invested, with $54 million of that over the 2020/2021 financial year for organisations from community level through to elite ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Keeping ACC levies steady until 2022
    The Government is maintaining current levy rates for the next 2 years, as part of a set of changes to help ease the financial pressures of COVID-19 providing certainty for businesses and New Zealanders, ACC Minister Iain Lees-Galloway says. “New Zealanders and businesses are facing unprecedented financial pressures as a ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Extended loan scheme keeps business afloat
    Small businesses are getting greater certainty about access to finance with an extension to the interest-free cashflow loan scheme to the end of the year. The Small Business Cashflow Loan Scheme has already been extended once, to 24 July. Revenue and Small Business Minister Stuart Nash says it will be ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New investment creates over 2000 jobs to clean up waterways
    A package of 23 projects across the country will clean up waterways and deliver over 2000 jobs Prime Minister Jacinda Ardern and Environment Minister David Parker announced today. The $162 million dollar package will see 22 water clean-up projects put forward by local councils receiving $62 million and the Kaipara ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Speech to Labour Party Congress 2020
    Tena koutou katoa  Nga tangata whenua o tenei rohe o Pōneke, tena koutou Nau mai, haere mai ki te hui a tau mo te roopu reipa Ko tatou!  Ko to tatou mana!  Ko to tatou kaupapa kei te kokiri whakamua  Tena koutou, tena koutou, tena tatou katoa   Welcome. I ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • PGF top-up for QE Health in Rotorua
    The Provincial Growth Fund (PGF) is investing $1.5 million to ensure QE Health in Rotorua can proceed with its world class health service and save 75 existing jobs, Under Secretary for Regional Economic Development, Fletcher Tabuteau announced today. The PGF funding announced today is in addition to the $8 million ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Building a more sustainable construction sector
    A new programme, which sets a firm course for the Building and Construction sector to help reduce greenhouse gas emissions, has been announced by the Minister for Building and Construction Jenny Salesa. “A significant amount of New Zealand’s carbon emissions come from the building and construction sector.  If we’re serious ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • PGF funds tourism boost in Northland
    The Provincial Growth Fund is investing more than $7.5 million in Northland ventures to combat the economic impact of the COVID-19 virus, Deputy Prime Minister Winston Peters and Regional Economic Development Minister Shane Jones have announced. The Provincial Growth Fund (PGF) investment is going to the Northern Adventure Experience and ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Four new projects announced as part of the biggest ever national school rebuild programme
    Prime Minister Jacinda Ardern and Education Minister Chris Hipkins today announced significant funding for Auckland’s Northcote College as part of the first wave of a new nationwide school redevelopment programme to upgrade schools over the next 10 years. The $48.5 million project brings the total investment in Northcote College to ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • COVID-19: Support to improve student attendance and wellbeing
    The Government has opened an urgent response fund to support schools and early learning services to get children and young people back on track after the Covid-19 lockdown. “While we are seeing improvements in attendance under Alert Level 1 Ministry of Education data shows that attendance rates in our schools ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Fast-track consenting law boosts jobs and economic recovery
    The law to boost the economic recovery from the impact of COVID-19 by speeding up resource consenting on selected projects has passed its second and third readings in the House today. “Accelerating nationwide projects and activities by government, iwi and the private sector will help deliver faster economic recovery and ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Whanganui Port gets PGF boost
    Five port-related projects in Whanganui will receive a $26.75 million Provincial Growth Fund investment to support local economic recovery and create new opportunities for growth, Regional Economic Development Minister Shane Jones announced today. “This is a significant investment that will support the redevelopment of the Whanganui Port, a project governed ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • More support for Sarjeant Gallery
    Whanganui’s Sarjeant Gallery will receive an investment of up to $12 million administered by the Provincial Growth Fund to support its redevelopment, Regional Economic Development Minister Shane Jones announced today. The project is included in a $3 billion infrastructure pipeline announced by Finance Minister Grant Robertson and Shane Jones yesterday. ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Funding for training and upskilling
    The Provincial Growth Fund is investing nearly $2.5 million into three Te Ara Mahi programmes to support Manawatū-Whanganui jobseekers and employees to quickly train and upskill, Regional Economic Development Minister Shane Jones announced today. “Up to 154 local people will be supported into employment within the first year by these ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Statement from the Minister of Health Dr David Clark
      This morning I have formally tendered my resignation as Minister of Health, which was accepted by the Prime Minister. Serving as Minister of Health has been an absolute privilege – particularly through these extraordinary last few months. It’s no secret that Health is a challenging portfolio. I have given ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Scholarship placements for agricultural emissions scientists doubles
    Scholarships for 57 early-career agricultural emissions scientists from 20 developing countries is another example of New Zealand’s international leadership in primary sector sustainability, says Agriculture Minister Damien O’Connor. Mr O’Connor, announcing the scholarships today, says hundreds of applications were received for this fourth round of the CLIFF-GRADS programme (Climate, Food ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Funding for Foxton regeneration
    A project to help rejuvenate the Horowhenua town of Foxton will receive a Provincial Growth Fund investment of $3.86 million, Regional Economic Development Minister Shane Jones announced today. “This funding for the Foxton Regeneration project will be used to make the well-known holiday town even more attractive for visitors and ...
    BeehiveBy beehive.govt.nz
    1 week ago