More talks on wage-tax deal

Press, 29 May 1981, Page 3

More talks on wage-tax deal

PA Wellington The Federation of Labour, the Combined State Unions, and the Employers' Federation will attend further talks on a wage-tax trade-off at the suggestion of the Prime Minister (Mr Muldoon). On Monday. Mr Muldoon spoke about proposals for a wage-tax agreement but saic that further talks with th< F.O.L. and the employer: would be required.

He said that settlement during the coming wag round should not exceed per cent and should be de pendent on any tax cut. offered in the Budget in late July. However, the Govern me’nt would have to seek the agreement of the F.O.L. or such an approach and woulc need to ratify the move with the Employers’ Federation. The F.O.L. and the C.S.U. have said that thev would

need significant long-term proposals by the Government if the ''stalemate" on the wage-tax issue were to be broken.

The F.O.L.’s secretary. Mr K. G. Douglas, said yesterday that if the government had specific proposals or if any big developments emerged at the meeting a special oneday conference of the F.O.L. would be convened to deal with them.

Mr Muldoon said yesterday that the Arbitration Court's wage-order hearing had involved a catch-up but that the Government had presented evidence that such an order could not be justified.

The language in which the Court had delivered its decision indicated "that the order was being given in advance of this year’s wage round. This was expressed exactly.’’