National hid min wage report - Labour

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Labour has accused National of hiding evidence that increasing the minimum wage does not lead to unemployment.

Labour leader Phil Goff said today John Key had intentionally ignored a Treasury report from March 2010, released under the Official Information Act, stating that a higher minimum wage does not generally lead to unemployment.

National has repeatedly shot down Labour's promise to raise minimum wage to $15 an hour, saying it would lead to a loss of 4100 to 5890 jobs - information based on a Department of Labour report.

Labour leader Phil Goff said John Key needs to "stop playing games with Kiwis".

"It is outrageous that he's sat on this advice all this time and tried to fool people by talking only about one report, instead of putting all the facts on the table," said Mr Goff.

Prime Minister John Key has accused Labour of being anti-business and running a 'head in the sand' approach to jobs.

However, Labour leader Phil Goff argues that increasing minimum wage gives workers more disposable income, boosting businesses.

"What I'm saying is, there will be a net benefit. People will have more money to spend buying the necessities. That keeps New Zealanders in work, in business. That keeps the economy going."

The CTU has backed Labour's policy, saying a higher minimum wage is crucial to advancing the economy.

"New Zealand cannot move to a high skill, high wage, and high value economy without real rises in wages and salaries."

- HERALD ONLINE