PM Transcripts

, jAUSAUS
FOR MEDIA WEDNESDAY 27 OCTOBER 1982
PUBLIC SECTOR WAGES IN THE CAIN BUDGET
I find it extraordinary that Mr Cain should expect praise for
the Victorian Government in relation to wage restraint. ( The
Herald*, 26 October, 1982).
The Victorian Budget provides for an enormous 17.6% increase
in public sector wage and salary payments in 1982-83. ( See
Budget Document No. 5 page 73).
Even allowing for some carry-over from 1981-82 settlements,
one can only conclude that the Victorian Government is
prepared to allow substantial wage and salary increases for
its public servants. For Mr Jolly refers in his Budget speech
to the fact that the Budget is based " on the maintenance of
public sector employment" ( Budget Paper No. 1, P. 3) and to
" iapproximately unchanged levels of employment' ( Budget Paper
No. 1, p. 8).
Indeed, Mr Cain himself concedes the point when he refers to
9wage agreements which had reflected nothing more than
community movement" ( Herald, 26 October 1981) In current
circumstances, it is essential that governments give a lead in
wage restraint to the community.
The fact that Mr Cain complains about criticisms of his
Government's wage policies shows his sensitivity on this
issue. I had not even drawn attention to these public sector
wage rises in the Victorian Budget.
I was making the point that the Commonwealth Budget
established the conditions for wage restraint by making many
average Australian-families $ 18 or $ 19 a week better off, and
that it was unfortunate that State Government Budgets
undermined these conditions by taking back much of these
benefits through increased State taxes and charges. I pointed
out that on Eric Risstrom's figures, the cost of the Victorian
Budget for Victorian families was $ 12 a week on average. This
is damaging enough in itself, but when it is combined with the
excessive public sector increases in the Victorian Budget, it
must inevitably damage the cause of wage restraint enormously.
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