rioters bloc
23rd December 2005, 02:20
Treasurer Peter Costello has been accused of lying to Parliament about the
impact of the new industrial relations laws.
A Treasury analysis released yesterday concluded that the changes would deliver
smaller wage increases for low-paid workers and, in the short-term, would have a
negative effect on productivity.
The government has strongly argued the new laws will lead to more jobs, higher
productivity and higher wages.
Facing questions in Parliament last month, Mr Costello denied the existence of
secret modelling work by Treasury.
Yesterday, Treasury secretary Ken Henry released a 16-page "executive minute",
but denied reports that the department had done economic modelling work on the
changes.
"The Treasury has never undertaken any modelling of the effects of the
Government's workplace relations reforms," Dr Henry said in a statement.
The minute said the new system for setting the wages for up to 1.6 million
low-paid workers would mean "minium wages are likely to be lower than they would
have been".
Mr Costello denied misleading Parliament, insisting that Treasury had never done
any "modelling" work.
"What has been released today is a minute which is not a specially commissioned
research or modelling, but gathers together the economic case in relation to the
importance of labour market deregulation," he said.
Most economists believe the changes will lead to higher employment, but through
lower wages, not because of higher productivity as the Government maintains.
Rory Robertson, an economist with Macquarie Bank, said the workplace changes
would enable new workers to be employed at below-award rates.
"It's pretty obvious that there will be downward pressure on the wages of the
least paid members of the labour force," he said.
impact of the new industrial relations laws.
A Treasury analysis released yesterday concluded that the changes would deliver
smaller wage increases for low-paid workers and, in the short-term, would have a
negative effect on productivity.
The government has strongly argued the new laws will lead to more jobs, higher
productivity and higher wages.
Facing questions in Parliament last month, Mr Costello denied the existence of
secret modelling work by Treasury.
Yesterday, Treasury secretary Ken Henry released a 16-page "executive minute",
but denied reports that the department had done economic modelling work on the
changes.
"The Treasury has never undertaken any modelling of the effects of the
Government's workplace relations reforms," Dr Henry said in a statement.
The minute said the new system for setting the wages for up to 1.6 million
low-paid workers would mean "minium wages are likely to be lower than they would
have been".
Mr Costello denied misleading Parliament, insisting that Treasury had never done
any "modelling" work.
"What has been released today is a minute which is not a specially commissioned
research or modelling, but gathers together the economic case in relation to the
importance of labour market deregulation," he said.
Most economists believe the changes will lead to higher employment, but through
lower wages, not because of higher productivity as the Government maintains.
Rory Robertson, an economist with Macquarie Bank, said the workplace changes
would enable new workers to be employed at below-award rates.
"It's pretty obvious that there will be downward pressure on the wages of the
least paid members of the labour force," he said.