The Service and Food Workers Union, which represents over 22,000 workers in some of the lowest paid jobs in New Zealand has expressed concern at the Prime Minister's comment today that the Government is "carefully considering" a "modest increase in GST to no more than 15%".

"The Government recently announced an increase to the minimum wage of 25 cents, which our members found insulting and demeaning. If GST is increased to as much as 15%, any increase to the minimum wage would quickly disappear.", said SFWU National Secretary John Ryall.

"For our members who live on just above the minimum wage, a considerable amount of their spending is on food and basic living costs. Any increase to GST would have a devastating effect on them, but an increase to 15% would be too much to stomach.", said John Ryall.

"For low paid workers, like the members we represent, an increase to the minimum wage up to $15 would be far more beneficial than an increase to GST."

"If the Government is truly committed to improving opportunities, fairness and security for all New Zealanders, then they should have increased the minimum wage to $15 instead of considering an increase to GST.", said John Ryall.