30 Jul 2013

Govt not concerned that Australian jobs moving to NZ

8:35 am on 30 July 2013

The Government has no qualms about Australian companies shifting jobs to New Zealand because of lower wages.

Labour is concerned that New Zealand is becoming a desirable destination for Australian businesses taking advantage of the wage gap.

Several big Australian banks and food producers have shifted jobs to New Zealand in the last two years.

Now call centres are also making the move, mostly because it is cheaper.

Darien Fenton MP said the trend is deeply worrying.

Economic development Minister Steven Joyce said the wage gap with Australia is an opportunity to create more jobs.

But the Council of Trade Unions said an economy created on low paid jobs lowers productivity, which could actually widen the pay gap even further.