REITH'S GST WAGES BREAKOUT

Date: 10 May 2000

Government claims that wages demands will not increase in response to the GST have been torpedoed by revelations that a registered industrial agreement in Peter Reith's own department includes a GST 'top up' clause.

Labor Shadow Minister for Industrial Relations, Arch Bevis, said: "This agreement covers the Australian Industrial Registry, right at the heart of Peter Reith's industrial relations system.

"The agreement which was certified on 24 February this year and tabled in the Parliament today has caused acute embarrassment to the Government, as the Prime Minister and the Treasurer attempt to play down the inflationary aspects of their GST.

"The clause in the agreement is quite explicit in its wording. It states:

Goods And Services Tax

12.2.7 It is agreed that any effects of the 'Goods and Services Tax' on employee entitlements and conditions of service will be discussed and appropriate actions implemented.

"Last night's Budget predicted inflation running at 6.75 per cent following the introduction of the GST. This figure blows away the 1.9 per cent price effect that the Government claimed last year.

"Australian workers will see their cost of living sky rocket following the introduction of the GST, and this in turn will put pressure on future wage claims. The management and staff of the Australian Industrial Registry, headed up by Peter Reith's former senior staff member Peter Richards, have acknowledged this fact even if Peter Reith won't publicly.

"It is only a matter of time until other workers follow the lead of Peter Reith's own department", said Mr Bevis.

For further information

Contact:	Moira Farrelly
Union:	ALP Federal
Phone:	(02) 6277 4518
Fax:	(02) 6277 8534
Email:	moira.farrelly@aph.gov.au
WWW:	http://www.alp.org.au

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