Call to expand talks on wages and taxes

Press, 16 January 1982, Page 4

Call to expand talks on wages and taxes

PA Wellington The Labour party has called on the Government to expand the agenda for talks on the' proposed wage-tax 5 trade-off “to take in all factors affecting wages and salaries." The Opposition's Shadow Labour Minister. Mr E. E. Isbey (Grey Lynn) said the expansion of the agenda would demonstrate the intention of the Prime Minister (Mr Muldoon) to tackle inflation.

It was "futile" to confine the discussions — scheduled for late this month — to wages and taxation. Mr Isbey said. The Government should be seen to be ready to put on the line its own responsibility in areas such as prices and Government charges, he said. Anything else would simply be an attempt by the Government to make the trade union movement the scapegoat for inflation. Mr Muldoon’s speech at Orewa earlier this week had made it clear “that he regards a wage-tax trade-off with the trade unions as the only weapon he against inflation. When inflation con-

tinues to soar as it will regardless of any agreement, because so many other factors are involved, no doubt we will have the working people held to blame." Mr Isbey said. “Tax reform is essential for wage and salary earners. But so are the stabilisation

of prices, Government charges, interest rates, house prices, and rents.

“If the Government is really serious about tackling the 18 per cent inflation rate now predicted for this year, then let it come to the table with a comprehensive proposal," he said.