F.O.L. astonishes P.M.

Press, 9 May 1981, Page 2

F.O.L. astonishes P.M.

PA Wellington The Federation of Labour Conference resolution opposing tax cuts in lieu of wage increases as a means of combating inflation, was astonishing and disturbing, said the Prime Minister (Mr Muldoon) yesterday. “I hope that this does not mean that the discussions which have taken place for well over a year must come to an end,” he said.

“The Federation of Labour resolution is a vote for continuing high inflation and is directly contrary to the best interests of rahk-and-file trade union members.

“I can only assume that the issue, which has widespread support, was not put clearly to the conference. “The Government will give early consideration to the consequences of this decision, but in the meantime a meeting has been arranged with the Federation of Labour and the Employers’ Federation for May 19. The Government representatives, led by myself, will be ready at that time to clarify the matter and indicate what further steps will have to be taken,” Mr Muldoon said. The president of the New Zealand Employers’ Federa-

tion (Mr S. Duncan) said, the resolution opposing a wagetax trade-off was in direct opposition to the interests of the people the conference was supposed to represent. - “I would have thought that the benefits in such a tradeoff were’obvious,” he said. “It would put more cash in the pockets of workers, while keeping costs down. 'This, in turn, would keep inflation down and be of considerable benefit to the country. “Most New Zealanders have had enough of inflation, but not the F.0.L., it would seem.”