Wage rise to sweeten Polish food-price leap

Press, 20 January 1982, Page 8

Wage rise to sweeten Polish food-price leap

NZPA-Reuter W’arsaw Poland’s military authorities have announced plans for huge increases in food prices from February 1, but have sweetened what they acknowledge will be an unwelcome move by raising wages in compensation.

The Polish news agency, Pap. said that the Government’s economic committee had proposed that food and fuel increases of between 200 and 400 per cent should come into force on February 1. Wages would be increased at the same time.

Previous attempts by Polish governments to put up food prices caused widespread social unrest and were a major factor in the labour revolt which led to the founding of the nowsuspended Solidarity independent trade union and ultimately to last month’s imposition of martial law.

A Deputy Prime Minister (Mr Mieczyslaw Rakowski) yesterday quashed speculation about an early end to military rule, telling a press conference: "No politician today could say precisely when this state will end."

But he added: “One thing

is certain: we do not treat martial law as a normal phenomenon. This policy may not please everybody, but we who live here... want to remain here within the borders that emerged after the Second World War. We want to be a sovereign State that decides its own destiny."

A statement at the weekend by the Polish Ambassador in London that Solidarity’s leader, Lech Walesa, would soon be released from house arrest brought a cool reaction from the Deputy Foreign Minister (Mr Jozef Wiejacz) yesterday. “Maybe what the ambassador said was interpreted in too optimistic a way," Mr Wiejacz said.

Mr Rakowski said he could imagine a situation in which Mr Walesa would have no part in shaping Poland's future. But he added: “That does not mean I have crossed Mr Walesa off.” Possible relaxation of the emergency restrictions was discussed yesterday by representatives of the Government and the Roman Catholic Church.

But the Pap news agency said the meeting “was un-

equivocally critical of decisions by Western governments on blocking aid to Poland."

Pap did not say who attendtAi the talks, which took place at the first reported session of a joint commission of Government and episcopate representatives since martial law was imposed on the country last December 13.

The Government's economic committee said in its announcement of plans for food price increases that it was aware that the move “could not possibly be welcome by society — for no such proposal would." but it hoped the increases would “meet social understanding."

The committee said the proposed prices were lower than real costs but that the difference would be subsidised by the Government to preserve living standards. Pay increases to help with increased bills would be worked out on a two-part system, it said, with basic compensation for most workers of 750 zlotys (SNZII.SO) a month, rising to 1400 zlotys ($NZ21.50) for underground miners.