Plea to delay rise in minimum wage
The hospitality industry says delaying a rise in the minimum wage could help save jobs threatened by fallout from the coronavirus.
The drop in Chinese visitors is expected to cost the tourism industry almost $100 million in the fortnight after borders were closed to prevent the spread of the virus that has killed more than 550 people.
Hospitality NZ chief executive Julie White said her members – which include cafes, bars, restaurants and commercial accommodation – were feeling the effects of the sudden drop in visitors, and delaying the scheduled minimum wage rise by three to six months would help avoid job losses.
The minimum wage is due to increase from $17.70 to $18.90 on April 1, putting an extra $48 a week into the pockets of those working 40 hours a week on the lowest rate.
White said the April minimum wage rise would be a ‘‘double whammy’’ for small to mediumsized businesses facing a much reduced income over summer.
‘‘They won’t be able to carry both.
‘‘They’re not getting the cash coming in over the traditional peak so they’re going to have to relook at their staff levels.’’
Workplace Relations and Safety Minister Iain Lees-Galloway said while he shared concern about possible economic impacts of coronavirus, delaying the wage increases was not an option.
‘‘[They] were well signalled in 2018, and they’re much needed by those on low incomes.’’
White said offering tax breaks to businesses severely affected by the loss of Chinese tourism was an alternative measure to soften the blow inflicted by coronavirus.
White said it would be helpful if the tourism industry aimed travel packages at Kiwis so they stayed here instead of going overseas.
Charlie Ives heads Regional Tourism New Zealand, which represents about 30 tourism promotion organisations nationally.
He said some were looking at packages for domestic tourism, which already accounts for 60 per cent of total tourism spending, but suddenly changing target markets was not easy with limited budgets.
Looking to boost business from Australia was also problematic because the Australian Government last year poured $20m into encouraging its residents to holiday at home to buoy up tourism businesses hurt by the bushfires.
‘‘We don’t want to be seen to be trying to benefit off another country’s misfortune,’’ said Ives.
He agreed that delaying introduction of the minimum wage could help, especially if the travel restrictions lasted more than a couple of weeks. ‘‘There are some businesses that will be very severely compromised.’’
A Westpac economic update this week predicted that the travel ban could lower New Zealand’s quarterly GDP by 0.4 per cent if it lasted two months.
It is OK for adult shops to display sex toys in their windows, providing the display is not ‘‘sexually explicit’’.
A ruling by the Advertising Standards Authority (ASA) did not however rule whether it considered bondage boxed sets with photographic covers showing scantily-clad women tied up for pleasure were sexually explicit.
That is because the owner of the DVX adult entertainment store on a busy Auckland shopping street removed the items, meaning the ASA considered the complaint from mum Lynne Low to have been ‘‘settled’’. Low also petitioned Parliament for change, believing community standards existed against which shop window displays should be judged.