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Cut govt spending to help poor: ACT

05:03 Thu May 24 2012
AAP

The ACT Party is calling for a cut in government spending as opposition parties campaign for the introduction of a "living wage" for low-paid workers.

ACT's leader and only MP, John Banks, says they should get behind policies that reduce the size of government.

"Every dollar spent by government is a dollar that must first be taken out of the pockets of New Zealanders," he said.

"Last year's financial statements showed that 49.9 per cent of every dollar spent in our economy was spent by the government or a government entity."

Labour, the Greens, unions and community groups are backing the Living Wage Aotearoa NZ campaign.

It hasn't set a figure for the wage it wants, but says a living wage most families need is well above the statutory minimum of $13.50 an hour.

Some employers in London, including local authorities and corporates, pay a living wage rate which is 30 per cent above the minimum.

The Greens want the minimum wage hiked to $15 an hour and then further gains introduced to bring it two two-thirds of the average wage.

Labour MP Darien Fenton says people on low wages need to be paid more to help ease pressure on social services and community organisations supporting the poor.

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