Income-fixing optimism

Press, 3 October 1979, Page 1

Income-fixing optimism

PA Wellington Government and tradeunion representatives emerged from discussions at Parliament last evening with an apparent commitment to establishing a better system of fixing incomes.

“Both sides want to do that,” said the Minister of Labour (Mr Bolger). “I think that sort of commitment is a good basis to work from.”

The president of the Federation of Labour (Mr W. J. Knox) also expressed confidence after the 90-minute meeting in the conference room of Mr Bolger’s suite in the Beehive.

“Some basis exists for us to have additional discussions,” said Mr Knox. The meeting was the second between the Gov-

ernment and the F.O.L. since last month’s general strike. It was preceded by a “mini” Cabinet meeting which brought together Mr Bolger, the Acting Prime Minister (Mr Talboys), the Acting Minister of' Finance (Mr Templeton), and the Associate Minister of Finance (Mr Quigley), as well as Treasury and Labour Department officials.

The meeting of Ministers and their advisers emphasised the importance the Government attached to discussions with the F.O.L. Mr Knox said last evening that the F.O.L. had presented a paper to the Government setting out its proposals for a future incomes policy. He would not disclose details of the proposals.

The Government would have to examine the proposals before the F.O.L.

would discuss “anything further,” Mr Knox said. However, Mr Bolger said that one of the F.O.L. proposals was a request for the Government to examine making another adjustment, such as a general wage increase. The F.O.L. was interested in some form of regular adjustment to maintain people’s purchasing power. “They emphasised that to us in their discussions and the paper they presented,” Mr Bolger said. However, the Government had not yet defined its policy on future general wage increases.

He said that it wrnuld be optimistic to say the parties made great progress yesterday, but little disagreement had arisen over such broad objectives as the need for growth in the economy and the pursuance of policies to increase employment.

Problem areas included productivity, relativities, employers’ ability to pay, and concern about sonie protection for low-income groups, Mr Bolger said.

Asked how far apart he believed the parties were on the key issues to be settled, Mr Bolger said that common goals were held, but he foresaw a significant difference in approach, at least in the earlv stages. The F.O.L. had reiterated that it would not participate in round-table discussions with the Government and the employers.

“I am quite happy to proceed with discussions between the parties individually,” Mr Bolger said.

Mr Knox said that the main difficulty in achieving an incomes policy was the Government's interference in free wage-bar-gaining.