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Public Sector Wage Freeze

Kim Booth

Kim Booth  -  Thursday, 28 August 2014

Tags: Wages, Public Service, Budget Cuts

The Hodgman Liberal regime is recklessly proceeding with its public sector wage freeze without having secured any modelling on potential impacts on the economy, Greens Leader and Treasury spokesperson Kim Booth MP said today.

“A range of commentators have raised concerns about the potential slow down of expenditure which could be the flow on effect of Tasmania’s public sector wage freeze,” Mr Booth said.

“It is to be expected that people who have a reduction in salary, which a wage freeze is in effect when CPI and other costs continue to increase, tighten their belts and reduce their spending to anything but the essentials.”

“This wage freeze will impact on many local businesses and independent operators who rely on people spending their discretionary salary component on their products and services.”

“Instead of assisting in stimulating the local economy, this freeze on public sector workers risks stagnating the state’s local business sector.”

“The Greens are calling for independent modelling of the impact of a public sector wage freeze will have on local businesses and stimulation of the state’s economy.”

“Hanging the axe of uncertainty over the head of our public sector workers, both in relation to job cuts and a wage freeze is false economy from the Hodgman regime,” Mr Booth said.