Alliance Spokeswoman on Employment, Dunedin
While the Alliance welcomes improvements, the package will be of very little long-term
value while government policies result in a permanent level of unemployment of 6% or more.
This means that for the foreseeable future a base line of 109,000 officially unemployed,
174,300 jobless and 160,000 on the unemployment benefits and on subsidised work schemes. That is
as good as it gets: 16% Maori and 17% Pacific Island unemployed. In a downturn, that is the
level of unemployment we start from, whereas we used to start from zero.
The government's employment policy aims to increase labour supply so as to keep the low
wage segment of the labour market highly competitive and to maintain downward pressure on
low wages.
We welcome improvements in abatement rates, childcare subsidies, early childhood education
and kura kaupapa funding and the evaluation of the TOPs programmes. However the Alliance
opposes the introduction of mandatory work tests and career interviews for spouses of
unemployment beneficiaries etc. These are coercive measures designed to increase labour supply at the
low wage end of the labour market, maintaining a downward pressure on low wage rates and
entrenching the inequalities which have been allowed to develop in the labour market.
Source - fax to the Jobs Letter 19 October 1995 (attributed to Leah McBey) "Employment Package fiddles - but some
positive measures."