A very good evening to you all, it’s good to be in Auckland

And can I start by getting the controversial part out the way. I promise that this speech will not make regular reference to the Crusaders beating the Auckland Blues on Saturday.

I don’t want to stand up here for too long as I’m sure most of you want to get to tonight’s panel discussion.

I’ve been asked to give an outline of how employment and industrial relations law is likely to unfold under the National Government, including the priorities and challenges ahead. Many of you will be aware of our immediate policies. These were pretty well aired leading up to the election and since, so I won’t reiterate too much detail right now but if you do have specific questions please don’t hesitate to raise them for the panel.

Since the election I have moved forward on a couple of key policies – the 90 Day Trial Period and review of the Holidays Act. The latter is an ongoing process and the draft terms of reference will go before Cabinet soon.

The Holidays Act is a big concern and I’ve spoken at length about it in other forums previously. It’s something I’m more than happy to take questions on, should you have any.

As the Government, our policy direction is aimed at driving a more flexible and productive economy. There is no doubt that employment law plays a vital role in our objectives. There are certainly a number of issues I will be looking at but fundamentally I believe that we need a more flexible and productive framework.

This will create opportunities for employers and employees. Of course, there are some people who will say that all I want to do is take away protections. I say rubbish. I reiterate now, fairness is very important.

I want to remind people that our productivity and labour market issues remain largely unsolved. It is easy in this current environment to lose sight of bigger issues. Not too long ago the media was filled with stories about the lack of skilled labour, labour shortages and lost productivity. While the current economic environment has taken centre stage, many know that our long term labour issues still remain. Yes, the public wants to know that we are doing everything we can to protect jobs and that we’re putting in place the mechanisms to help people find employment. Yes, the current economic environment is of great concern, but I also know that we can not stop considering the longer term economic problems New Zealand faces.

Focusing solely on the here and now and hoping the economy will fire itself back into life in two years time, is not part of the plan.

What is critical is that the employment framework must not be a hindrance to both job seekers and employers. The 90 day trial period is a good example of legislation that offers encouragement to employers and opportunities to employees. A business that has the confidence to take on staff is surely more valuable than one that won’t because of personal grievance concerns.

Equally, good employment law should not impose frivolous costs on business or be so convoluted that judgements end up in our Supreme Court. The Holidays Act is a good example of a piece of legislation that does cause such problems. Finding the right solution is no doubt going to take some thinking. Issues such as relevant daily pay should not require a masters’ degree in mathematics. Holiday pay should be easy to work out and it should not drive wrong behaviours. Business New Zealand and the CTU have accepted invitations to be on the working party for this review, and I thank them for their participation.

Talking with businesses around the country it is clear that they do have concerns with employment law and some would like to see drastic alterations.

Of most frustration with employers has been the inability of the past administration to boost productivity. Most employers want to get the best out of their staff so they can grow their business. It is, in my view, a reasonable position to have.

There are a number of things that have contributed to stifling productivity, some of which can be attributed to red tape, some a consequence of an underlying environment. My intention as Minister of Labour is to identify areas in our employment law that can be improved to provide a growth-friendly environment. There is obviously a balance that must be struck to ensure growth is accompanied by fairness.

There are many obstacles that can derail businesses right across the employment relations spectrum. Dispute resolution is one of those. We have a very busy mediation service in the Department of Labour and they get through around 9,000 cases each year. I am committed to promoting this avenue as the primary problem-solving mechanism.

I know people have expressed concerns about the perceived and actual independence of the Mediation Service, so I am considering ways to enhance their independence. I want to ensure the Mediation Service has properly qualified mediators.

I am also working with the Employment Relations Authority to ensure it acts in a more judicial way. What I want to see is an authority that retains relatively simple access to justice that is not bogged down by too many rules and procedures, yet ensures proper justice is delivered. If we can make the decisions made by the Authority more consistent and more reliable, employers and employees will both enjoy more certainty in the employment relationship. And hopefully, a lot of wasted time and money can be avoided.

Part of this includes a proposal to allow complicated cases to go straight to the Employment Court. This would involve complex legal issues such as injunctions and would bypass the Authority. Those issues are best resolved in a court of law to avoid unnecessary duplication and costs and to ensure that proper judicial decisions are made.

A working environment that offers encouragement to those seeking to further themselves and their families is beneficial to all. There is no mistaking that we have over 100,000 people who are struggling to get by on the minimum wage and thousands more on the benefit. I am focused on creating a framework that is conducive to growth and the people in this room are part of the solution. I hope that you all recognise your role and I can give my assurance that I am here to listen.

Good employment law is integral to a healthy economy and I am confident that, from a Government perspective, we are on the right path to being in the best position possible to capitalise when the global economy recovers.

Thank you.

Posted by staff in Speech at 12:54

New Zealand Food Safety Minister Kate Wilkinson is calling for science-based evidence on the benefits of adding folic acid to bread.

She has asked Food Safety Authority officials to prepare a paper for Cabinet on the health benefits of adding folic acid to bread, which will be compulsory from September.

Her call comes as the Bakers’ Association and Food and Grocery Council raise concerns about being able to produce bread with the required level of folic acid.

The fortification of bread with folic acid is aimed at reducing the number of brain-damaged babies and was championed by the previous Labour Government.

Ms Wilkinson says a lot of scientific research on fortification with folic acid has been done, some of which raises concerns about potential links to cancers.

"We need to make sure the health benefits outweigh the risk and that the evidence is science-based and not emotion-based," says Ms Wilkinson.

The scheme had been "inherited" from Labour and she has a lot of questions about their reasoning and the advice that was given to them.

"There was no consultation, no paper to Cabinet.

"Advice showed that 87 per cent of New Zealanders did not want it," she says.

Officials have been instructed to come back to her urgently with more information on the latest research.

Ms Wilkinson says the compulsory introduction of the fortification of bread with folic acid was led by the trans-Tasman Food Standards Australian New Zealand agency.

The Government takes its Treaty obligations seriously and will be working within the joint standard regulations to address any concerns that arise, she says.

Posted by staff in News at 12:49

Local National MP Kate Wilkinson says the time lines for consultation on proposed enrolment schemes for Rangiora and Kaiapoi High School is the responsibility of both Boards of Trustees.

Ms Wilkinson said she had asked Minister of Education Anne Tolley for more information after questions were raised about the process at a public meeting at Waikuku Beach.

The Minister’s office had since replied, advising that the Ministry of Education has not set deadlines for consultation with the respective school communities.

The process is managed by the Board of Trustees of the respective schools who have set out their timelines.

The Ministry expected that if the zoning changes were implemented they could take effect in a mutually agreed timeframe and it would be prudent to provide transitional arrangements, especially for siblings.

"I understand that the earliest that these changes would likely take place would be for the 2011 academic year," Ms Wilkinson said.

Ms Wilkinson says both schools were requested to review their enrolment schemes in a letter from the Ministry of Education on March 10.

At that time Rangiora High School had 1649 students and Kaiapoi High School 636.

The proposed revision involves the abolition of the part of the two home zones that is presently shared by both schools and involves around 200 students.

Ms Wilkinson says most students in this shared zone attend Rangiora High School, which in the future would be part of the Kaiapoi High School home zone.

She says the review process is aimed at ensuring the viability of both schools into the future, taking note of population growth and potential overcrowding issues.

Posted by staff in News at 12:44

The Pay and Employment Equity Unit (PEE) will be disestablished as part of the reprioritising of Government spending, says Minister of Labour Kate Wilkinson.

Seven positions will be affected by the change.

"The unit has worked hard researching the causes behind New Zealand’s gender pay gap and that work remains to be a valuable source of information," Ms Wilkinson says.

"But ultimately, achieving the goal of closing that pay gap can’t be realised by having a singular focus on the state sector.

"This issue is the responsibility of all employers and good employers will work to tackle it.

"Disestablishing the PEE will not mean women lose their voice on employment issues. The Government continues to receive advice from other groups such as the National Advisory Council on the Employment of Women."

The Department of Labour is working to support the staff involved.

Posted by staff in News at 12:38