Monday, February 27, 2006

Wellington - the subsidised city.

Leading the DomPost business pages today is a report about a survey which shows the majority of Wellington businesses approve of the rise in the minimum wage and the abolition of youth rates. This is at odds with a survey done in Auckland. Why would that be? You may recall that Wellington's economic growth is outstripping other regions. That's primarily due to the growth in the civil sector.

Business New Zealand chief executive Phil O'Reilly said the Wellington respondents were more likely than the Auckland ones to be involved in the domestic sector as retailers and small manufacturers, rather than in the exporting sector.

Considering the nature of the respondents' businesses, it was possible some would think an increase in the minimum wage would mean more spending, which could benefit them, particularly if they were retailers and small manufacturers.

It is also possible that those already paying over the minimum wage want their competitors forced to follow suit. There's the key word. FORCE. Notice that force is always used against the productive. We don't force people to get jobs but we force employers to pay those who do whatever arbitrary figure the govt wants to put on it.

Good on those employers who pay the extra. But why embrace turning choice into edict?

This morning Wellington is absolutely positively socialist.

No comments: