Erosion of wages for September year 6.8%

Press, 24 December 1985, Page 1

Erosion of wages for September year 6.8%

PA Wellington The money available to a full-time worker to spend during the year to September fell 6.8 per cent.

Figures released yesterday by the Statistics Department show that the pay packets of full-time wage and salary earners have been steadily dropping since March, 1984. The latest department survey, which looks at the quarter ending September mis year, reveals that real disposable incomes have fallen 2.3 per cent for fulltime workers and 2.1 per cent for households. The statistics show that for the three months from June to September, the changes of the five income groups recorded ranged from a 2.6 per cent drop for the lowest group to a 2.2 per cent decrease for . the middle and second highest

groups. The department’s survey is made four times a year to measure the impact of changes in incomes, income taxation and consumer prices on wage and salary earners and wage-and-sal-ary-households.

According to the Deputy Statistician, Mr Ron Welply, the over-all fall in measured real disposable incomes resulted from a 0.4 per cent increase in average gross incomes being more than offset by the combined effect of a 2.7 per cent rise in the Consumers’ Price Index and a 0.4 per cent increase in average tax rates over the same threemonth period. The figures show that

since March, 1984, the fulltime worker’s real disposable income has fallen about 10.4 per cent. The latest statistics highlighted the desperate plight of many families during the Christmas holiday season, said the Opposition spokesman on finance, Mr Bill Birch, yesterday. The Government had made loud noises last year about the Family Care package which was supposed to have helped families. said Mr Birch. In fact families were significantly worse off than they were a year ago and the blame could be laid directly at the feet of the Government, he said.