Sheltered workshops must pay the minimum wage

A controversial plan to force sheltered workshops for the disabled to pay the minimum wage will go ahead despite opposition in Parliament, the Government said yesterday.

The social services select committee reported back to Parliament yesterday that it had been unable to reach agreement on whether the bill should be passed.

Organisations that run workshops for disabled people are concerned the bill will force them to close or cut back their operations.

If the bill goes ahead, workshops will either have to pay the minimum wage - which rose yesterday by 50c to $9.50 an hour - or negotiate a special rate based on the level of disability.

National, NZ First, Act and United Future all oppose the bill, but the Greens said yesterday that they would support the Government.

Disability Issues Minister Ruth Dyson accused opposition MPs, particularly Act deputy leader Muriel Newman, of scaremongering. "Concerns by providers, family members, disabled people about their future are understandable because this is change," Ms Dyson said.

"However the fears have been heightened by what I think is deliberate or extraordinarily lazy misrepresentation of the facts by Muriel Newman particularly."

Former Health and Disability Commissioner Robyn Stent has emailed all 120 MPs warning that many workshops will close if they pass the bill.

She was disappointed the Government was going ahead without ensuring there was provision for those who were the most disabled.

Dr Newman said the bill was one of the worst examples she had seen of a Government failing to do its duty.

"You've got a group who are amongst the most vulnerable New Zealanders. They haven't got a clue what the bill means for them."

There are about 3700 disabled people working in sheltered workshops.