Govt blamed for jobless

Press, 28 January 1986, Page 28

Govt blamed for jobless

PA Wellington The latest unemployment figures were “clear proof’ that Government policies were moving New Zealand into deeper troubles, said the Opposition’s spokesman on industrial relations, Mr George Gair.’ “For months last year we were told by Ministers that the economic pain was worth while to create jobs and reduce inflation and interest rates. That argument is now blown, to bite,” said Mr Gair. “Mortgage and interest rates have not fallen. Inflation, with a boost from GST, is still likely to reach 20 per cent by the year’s end and now we have confirmation that unemployment is rising rapidly while the economy runs out of steam.” Undoubtedly settlements during the wage round had contributed to the gloomy employment forecast, said Mr Gair. Had the Minister of Employment, Mr Burke, not “twiddled his thumbs” when employers and workers were calling for advice this problem may not have occurred, he said.

The Opposition, the Federation of Labour, and the Employers’ Federation had all asked for guidelines to second-tier wage bargaining and also more flexibility, but they were ignored.