The Council of Trade Unions has criticised the Government for promoting New Zealand's low wages as a way of attracting investment here.
Finance Minister Bill English told the Australia-New Zealand leadership forum in Auckland that New Zealand has competitive advantages over its trans-Tasman neighbour, including the fact wages here are 30% lower.
CTU secretary Peter Conway says on the one hand, the Government has a policy of closing the wage gap with Australia, yet on the other Mr English is telling businesses to use the fact wages are far lower here to attract investment.
Mr Conway says Mr English's comments call into question what the Government's real policy is.
Also at the forum, Mr English said he was confident New Zealand could successfully compete with Australia over the next decade or more, despite Canberra benefiting from its minerals boom.
Mr English told the forum he is more interested in beating the Australians than co-operating with them.
Mr English said New Zealand has a range of factors in its favour, which means it will do better than its trans-Tasman neighbour and he is not intimidated by Australia's vast mineral wealth.
He said the minerals boom is focused very narrowly on the Chinese construction industry, whereas there is much wider demand for high-quality New Zealand food products.
New Zealand's regulations are also better than those in Australia, he says.
Also attending the forum were New Zealand Prime Minister John Key and Foreign Affairs Minister Murray McCully, Australian Trade Minister Craig Emerson and Attorney-General Robert McClelland.
