Category: Budget 2024

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NZCTU slams Government cutting disabled workers wages as disgraceful

Source: Council of Trade Unions – CTU

The NZCTU is slamming a decision by the Government in Budget 2024 to cut a programme which ensured that disabled workers are paid the minimum wage.

“It is disgraceful that this Government is cutting the incomes of hundreds of workers with disabilities across Aotearoa New Zealand,” said NZCTU President Richard Wagstaff.

“The idea that any worker should be paid below the minimum wage, let alone as low as $2 per hour, is totally unacceptable.

“The Government was elected on a platform of supporting New Zealanders through the cost-of-living crisis, and yet with this change they are intentionally making life harder for disabled workers,” said Wagstaff.

“The previous Government’s decision to end the minimum wage exemption for disabled workers by paying employers a subsidy was a long-overdue decision,” said Nicole Wallace, convenor of Kaimahi Whaikaha, the NZCTUs disabled workers sector group.

“That policy was the result of decades of advocacy by workers with disabilities, the union movement, and disabled people’s organisations. Workers with disabilities deserve to work with dignity.  

“It is deeply disappointing that the new Government is reversing that policy and condemning many disabled workers to low wages.

“Workplace discrimination and lack of access to work are a significant contributor to high rates of poverty among people with disabilities. This decision will further increase poverty among disabled people,” said Wallace.

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New Zealand not in Better Health after Budget 2024

Source: Council of Trade Unions – CTU

The NZCTU has analysed the health spending at Budget 24 in conjunction with ASMS and NZNO. Health funding was central during the election campaign. All major political parties stated that they would increase health funding every year.

 “This Government has added $93 million to health operating expenditure for the 2024/25 fiscal year on a net basis. This appears to be much less than the $2 billion of new operating expenditure claimed in the Budget. Much of that is not new money, it’s simply recycled expenditure. When adjusted for inflation, total operating expenditure fell by $775 million or nearly 3%,” said Craig Renney, NZCTU Economist and Director of Policy.

“With population growth, this figure becomes even more troubling. Per capita operational expenditure on health fell by 1.3%, and real per capita expenditure (i.e., adjusted for inflation) fell by 4.5% on current population projections.

“Many election promises were not delivered in Budget 2024, including:

  • 13 new cancer drugs
  • 50 additional doctors per year
  • More nurses and midwives
  • Funding a new medical school.

“As an example of the priorities within government, Budget 2024 commits more new money to funding security guards for A&E departments than to training new medical staff. We would question whether hospitals would need so much security if patients were being seen more quickly by doctors.

“This Budget doesn’t appear to have addressed any of the key workforce shortages in any meaningful way. This is likely to increase stress levels across the workforce and encourage more trained medical staff to move overseas.

“Budget 2025 will present another opportunity to address the shortages being generated by this Budget. The Coalition Government needs to take that opportunity to invest properly in health services and health workforces,” said Renney.

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Budget 2024 fails to deliver investment that New Zealanders need

Source: Council of Trade Unions – CTU

Budget 2024 is placing this governments ideological wants before real New Zealanders’ needs.

“Tax cuts and spending cuts are favoured over addressing the cost-of-living crisis and delivering the investments that New Zealanders need,” said NZCTU Economist Craig Renney.

“Nicola Willis has failed her own tests that she set herself, such as when she said her tax cuts would “not require any additional borrowing” said Renney. According to Treasury, the Government will borrow an additional $17.1bn by June 2028. Tax cuts will cost nearly $10bn. Future taxpayers are going to pay for tax cuts today.

“Willis also claimed that she would be able to deliver on all National’s election promises. Yet the tax cut programme doesn’t include the Working for Families changes promised by National in opposition. The gambling tax changes were supposed to bring in $716m over the next four years. They now bring in $190m. It’s now clear that the tax package isn’t being delivered as promised.

“The Budget also fails the test of not cutting front-line services. Real terms cuts are made to operating grants to education. Vote Customs sees only cuts, no investment at all. The same is true for Agriculture, Biosecurity, Fisheries, and Food Safety, as it is for Māori Development and Pacific Peoples.

“The Budget fails the test of helping to end child poverty. Officials now forecast that  targets on child poverty will be missed significantly. The Government states that, “A key driver of child poverty is living in a benefit-dependent household”. In reality, the key driver of living in poverty is being poor – something that is not helped by real terms cuts to the minimum wage, and cuts to welfare payments.

“This Budget fails the test of preparing New Zealand for the future. Investment to support business, science, and innovation is cut by $1.4bn – and only $700m is returned. This includes cutting large elements of the Warmer Kiwi Homes programme, which improves the energy efficiency and health of New Zealand’s ageing housing stock. Tackling climate change is no longer a concern, with $180m cut from the Energy Efficiency and Conservation Authority. The National Resilience Plan, established to help with future natural disasters, is ended.

“The Government has clearly signaled its values with this Budget. Short-term benefits for some in the form of tax cuts will come at the cost of long-term borrowing, rising child poverty, and increasing insecurity from challenges such as climate change and rising unemployment.

“This is a Budget for the few. It doesn’t deliver for the people who need it most. The Government has failed the most important test of all – delivering a better future for Aotearoa,” said Renney.