The NZBR supports markets as the best mechanism for determining the relative pay rates of New Zealand workers. In our view, a deregulated and flexible labour market is most likely to lead to better labour market outcomes for all New Zealanders. Further regulation of the labour market in the form of pay equity is unlikely to serve the interests of New Zealanders generally or 'target' groups such as women, Maori and Pacific Peoples. We would recommend against any proposals to introduce bureaucratic programmes such as pay equity. Rather, flexible labour markets, sound antidiscrimination laws and well-designed education policies that promote efficient investment in human capital offer a better and fairer mechanism for protecting workers generally and workers in 'target' groups in particular.