Trade-off chances clearer today?

Press, 19 May 1981, Page 6

Trade-off chances clearer today?

PA Wellington The possibilities of the Government and trade union leaders reaching agreement on a wage-tax trade-off could become clearer today after a further plenary session of the tripartite wages talks. Delegates at the Federation of Labour’s annual conference threw cold water on the concept when they voted earlier this month against discussions with the Government on the subject. Behind the resolution was the thought that workers were already too highly

taxed,, and deserved a tax cut as of right. The resolution also expressed the belief that social welfare benefits might be eroded if unions agreed to cuts in personal taxation as a means of lessening the impact of wage increases on the economy. The Prime Minister (Mr Muldoon) has described, the conference decision as “illogical.” However, he told a news conference yesterday that according to a letter he had received .from the F.0.L., the conference resolution did not appear to be as “cut and dried” as it first appeared.

Mr Muldoon, who said the Government had not yet put any specific proposals to the F.O.L:, commented that he would go to the. meeting today with an open mind. "I guess I’ll listen for the first 10 minutes,” he quipped. Since the last plenary session of the long-running talks sqme weeks ago, a sub-com-mittee involving the F.0.L., the Combined State Unions, the Employers’ Federation, and Government officials has been meeting on the taxwage issue. Its report will be the main topic of discussion during the plenary session.