Wide-ranging response to job creation study

John Bezett
John Bezett
The reaction to the Otago Daily Times two-part investigation into who creates jobs for young people ranged from Dunedin city councillor John Bezett talking about local government-inspired job creation to Act New Zealand list MP Hilary Calvert telling the Government to try harder.

In between, some readers and correspondents asked for some things that were already in place.

However, Tom Murdoch, from Arrowtown, did suggest that tax concessions could be offered to people employing "youth" along with age-related salary scales to encourage employers to offer jobs to young people.

"Given that the world is going through a period where employment is being affected by economic decline in developed countries, we need to react strongly and earlier than our competitors," Mr Murdoch said.

He also suggested giving financial preferences or incentives to employers to employ Kiwis over foreign visitors, initiatives to encourage local onward processing of New Zealand's raw materials and the need to concentrate particularly on tourism and education.

"Some of the above may offend delicate sensitivities but having our young people in work avoids many of the habits that create what they are calling sicknesses in society that we need to avoid," he said.

Cr Bezett, the chairman of the council's economic development committee, said the city had created many jobs and that a local authority was in the best place to influence job creation rather than the Government.

The Government could help with adopting policies that made it easier to hire people.

Cr Bezett pointed to some recent examples within Dunedin of how jobs had been created by council actions.

They included 300 to 400 jobs created during the building of the Forsyth Barr Stadium, hundreds of other jobs coming through the upgrade of the Dunedin Town Hall, the Settlers Museum and the Regent Theatre.

A member of a committee which tried to get KiwiRail to issue some contracts to Hillside Workshop rather than take a cheaper Chinese contract, Cr Bezett, also a city businessman, said the whole aim of the committee was to keep jobs in Dunedin.

Cluster engineering industries would be affected by the downsizing of Hillside, he said.

Asked whether he saw any irony in the fact that jobs were being created by the council and paid for by ratepayers, Cr Bezett said he did recognise that ratepayers were paying for the jobs.

"I believe people in Dunedin are prepared to put 1% extra on their rates for the city council to subsidise this job creation activity. It keeps young people and workers here and families together."

One of the problems faced now by the city was the rebuilding of Christchurch. Already, workers were commuting to Christchurch.

on Monday and back on Friday.

Eventually, those workers could decide to stay for a year or more for work and longer for family reasons.

In Dunedin, there were hopes of setting up a consortium of smaller businesses to form a combined company to build infrastructure in the city and rail it to Christchurch.

"That is much better than sending workers to Christchurch," he said.

Ms Calvert said the National Party, and list MP Michael Woodhouse who responded on Monday to the suggestions made in the two-part series, still relied too heavily on government schemes to create jobs.

"It is business, not government that responds to consumers needs, creates jobs and generates wealth," she said yesterday.

The best thing government could do for job creation was to develop good infrastructure, creating an environment in which businesses would thrive and otherwise stay out of the way.

"What government should not do is spend millions of taxpayer dollars on pointless make-work schemes such as Job Ops and Community Max schemes lauded by Mr Woodhouse. Options such as reintroducing the young minimum wage would achieve much better results at almost zero costs," Ms Calvert said.

dene.mackenzie@odt.co.nz

Add a Comment