Trade union contribution

Press, 8 May 1985, Page 2

Trade union contribution

PA Wellington The New Zealand trade union movement had made “a very real contribution" to the nation’s economic recovery, said the Minister of Finance, Mr Douglas, yesterday. Mr Douglas was responding to a question posed at a Sales and Marketing Executives Internationa] luncheon, on bow he felt about “murmurings” from the trade union movement about the the Government’s economic path. “I think their acceptance

of a wage settlement of about 7 per cent last December made a major contribution to bringing stability to and giving us the opportunity of having some real medium term growth and a higher standard of liquidity,” Mr Douglas said. “It is my intention that we continue the dialogue with the Federation of Labour and the trade union movement,” he said. Mr Douglas was hopeful that, in terms of the goods and services lax for example, the Government would have “close dialogue” with the movement “to receive the benefit of some

major input from them in terms of some of the equity questions that are involved." Mr Douglas said the internal deficit was falling to a level lower than was predicted in the published November forecast. On the proposed goods and services tax, Mr Douglas said the benefits accruing from it would be better for small businesses because two-monthly returns would bring better information. Better decisions, and consequently bigger profits, would follow, he said. The Government had yet to find a suitable exemption level for small businesses, he said.