Sustainable rates for workers worth paying

Finance Minister Grant Robertson (left) with Institute of Directors Otago Southland branch committee member Duncan Fea before their event in Queenstown on Friday morning. PHOTO: MATTHEW MCKEW

Grant Robertson has suggested New Zealand workers can be found to plug the gaps in Queenstown’s labour market, it just takes change.

Speaking ahead of an Institute of Directors Otago Southland branch event at the Sofitel Hotel, he signalled resetting the tourism industry could stop New Zealanders being priced out of visiting the resort, post-pandemic.

Mr Robertson said when Covid-19 first hit, the Government was told there would not be enough pickers for New Zealand fruit with the borders closed.

"But with a tweak around rostering and yes, a boost in pay, they were able to recruit people."

By lifting basic pay rates and changing conditions — such as the affordability of housing — New Zealanders could be encouraged to come to Queenstown.

That was why the Government was working with the Queenstown Lakes District Council to ensure infrastructure was there to support housing developments.

When Tourism Minister Stuart Nash spoke at the Queenstown Chamber of Commerce two weeks ago, Ecotrek owner Trent Yeo questioned how much baristas could be paid before prices had to go up.

Responding to this point, Mr Robertson said the Government had been increasing the minimum wage because it did not think it was enough to live on and some areas would need to pay above that level to get workers.

"If a business needs to add a few cents to a cup of coffee, that will be a decision they make, but we need to make sure the people who work there are paid a reasonable and living wage."

Hospitality businesses were struggling to recruit across the globe and Mr Robertson said there was a universal challenge of rising living costs questioning the industry’s business model.

Despite this, Mr Robertson said the Immigration Minister was considering a further extension to working holiday visas, something some Queenstown businesses desperately sought.

A big criticism of Queenstown was it was unaffordable for New Zealanders to visit.

When questioned about pricing, business owners cited high rents and could only afford discounts in the past year through landlord concessions.

Mr Robertson said New Zealand wanted tourists to return, but in a more sustainable number and this would mean the market reached an equilibrium.

"The market will do some things to sort it, because if literally nobody can afford to be here, the landlords won’t have anybody in their properties.

"I know at the height of Covid a large number of landlords did step up to bring down prices.

"Will the market sustain them putting them all the way back up again?"