November, 2004

November, 2004

Comment

There is a danger that with a tight labour market, the debate shifts to migration solutions rather than how to lift wages. And with a Budget surplus of such large proportions, there is a danger that the frustration about the slow pace of wage increases shifts to a debate about tax cuts. CTU policy is to support a progressive taxation system. We also know that middle and high-income people pay most of the income tax. Last time there were tax cuts (in the 1990s) only 29 cents in every dollar of the tax cuts went to low and middle income workers. But with government revenue rising because of much greater levels of employment and economic activity, it is no surprise that the tax scale has come under pressure.

"Its About Time!" defines the issue and the roles of unions, the Government and employers in removing the barriers that stop workers achieving balance between work and the rest of their lives.

October, 2004

Comment

The proportion of New Zealanders owning their own home is falling. Home ownership rates were down from 72% in 1981 to 68% in 2001 . The rate of home ownership for M?ori has fallen in that period from 48% to 44% and for Pacific peoples from 39% to 35%. Median house prices are up by 16.3% in the September year (a drop from the over 20% figures from earlier this year) whereas private sector wages are up by 2.2%. But this has been a trend for a number of years. For instance, in the year ending August 2003, house prices in New Zealand increased by 16% and rents increased by about 8%. A typical low-income worker needs about 20 hours a week to cover rent (27 hours in Auckland). In the last decade, there has been a 44% decline in the 25-44 age group of home-buyers. In the past two years, the proportion of first home buyers who are under 30 in New Zealand has fallen from 48% to 39%. This is primarily due to: increased competition between first home buyers and property investors, house prices rising faster than incomes, casualisation affecting income security, student debt, removal of specific assistance for entry into home ownership, and changing family arrangements as the number of households increases but the size of households is falling.

Future Challenges: The economy, China and the role of unions.

Greetings from the Council of Trade Unions.

Can I start by acknowledging the very important contribution your union makes to the work of the CTU. I was very keen for the National Distribution Union to re-affiliate when I became president five years ago, and I continue to value the representation which you provide on behalf of a very diverse, and important, group of workers in the private sector.