June, 2004

Carol Beaumont to ILO

CTU Economic Bulletin No. 48

May, 2004

Comment

I have already sent out a separate Budget report. The CTU has welcomed the Working for Families Package despite the long delay before it is fully introduced. We have pushed hard for income redistribution in favour of those on low incomes. However we have also noted that there are limits to how far a Government could or should go in subsidising low wages rather than increasing minimum pay rates, improving collective bargaining mechanisms, and addressing pay equity issues. Michael Cullen in a Pre-Budget speech to Chen and Palmer on 18th May noted that the package "may take some of the pressure off wages, although that is not its primary intent".