❓ The Leader of the Opposition questions the Premier about public sector wage increases being limited to 2.75% while household charges increase at a higher rate, and about large pay rises for the Premier's staff. The Premier defends the increases in charges and explains the CPI, and justifies the staff pay rises by noting they are contract staff.
AnsweredQoN 247Legislative Assembly
QuestionView source ↗
PUBLIC
SECTOR MANAGEMENT — WAGES
247. Mr M. McGOWAN to the
Premier:
I refer to the Premier's recent increases in
household charges in excess of the consumer price index, including electricity,
four per cent; water, six per cent; and gas, six per cent.
(1) By
limiting public sector wage increases to 2.75 per cent, has the Premier now
condemned those public sector workers fortunate enough to still have jobs to go
backwards against the rising cost of living in Western Australia imposed by the
government?
(2) How does
the Premier explain pay rises of up to 52 per cent for his own personal staff
while telling everyone else to accept 2.75 per cent?
SECTOR MANAGEMENT — WAGES
247. Mr M. McGOWAN to the
Premier:
I refer to the Premier's recent increases in
household charges in excess of the consumer price index, including electricity,
four per cent; water, six per cent; and gas, six per cent.
(1) By
limiting public sector wage increases to 2.75 per cent, has the Premier now
condemned those public sector workers fortunate enough to still have jobs to go
backwards against the rising cost of living in Western Australia imposed by the
government?
(2) How does
the Premier explain pay rises of up to 52 per cent for his own personal staff
while telling everyone else to accept 2.75 per cent?
AnswerView source ↗
(1) I think
most people accepted that the rates of increases in fees and charges of between
four and six per cent were reasonably modest in the circumstances, bearing in
mind that we still have massive cross-subsidies in electricity being paid for
by the taxpayer and ongoing, probably permanent, massive subsidies in various
concessions through the Water Corporation and the Public Transport Authority. The public in this state is more
informed than the Leader of the Opposition gives them credit for; they
understand that, one way or another, services have to be funded.
The Leader of the Opposition
implies that a four to six per cent increase means that people are worse off.
Can I explain to the Leader of the Opposition how the consumer price index
works? The consumer price index has a lot of categories through which consumer items are priced and weighted according to
consumption levels. If electricity goes up by four per cent, it does not mean
CPI is four per cent. I am sure the member for Riverton would be delighted to
give members opposite a formal lecture and presentation on how CPI is
constructed. It is a weighted average index and members opposite misunderstand
and misinterpret it. They are modest increases and, indeed, many people in the
public service would be pleased that their wages will at least keep in line with CPI. In other words, they will not have a
real wage decrease. That is the result.
(2) With
respect to salary increases for staff the Leader of the Opposition has
repeatedly named in this Parliament, they are contract staff. They are
term-of-government staff. Yes, some adjustments were made and they were large,
but they are contract staff; they do not have any of the benefits or
entitlements that normal public servants have.
most people accepted that the rates of increases in fees and charges of between
four and six per cent were reasonably modest in the circumstances, bearing in
mind that we still have massive cross-subsidies in electricity being paid for
by the taxpayer and ongoing, probably permanent, massive subsidies in various
concessions through the Water Corporation and the Public Transport Authority. The public in this state is more
informed than the Leader of the Opposition gives them credit for; they
understand that, one way or another, services have to be funded.
The Leader of the Opposition
implies that a four to six per cent increase means that people are worse off.
Can I explain to the Leader of the Opposition how the consumer price index
works? The consumer price index has a lot of categories through which consumer items are priced and weighted according to
consumption levels. If electricity goes up by four per cent, it does not mean
CPI is four per cent. I am sure the member for Riverton would be delighted to
give members opposite a formal lecture and presentation on how CPI is
constructed. It is a weighted average index and members opposite misunderstand
and misinterpret it. They are modest increases and, indeed, many people in the
public service would be pleased that their wages will at least keep in line with CPI. In other words, they will not have a
real wage decrease. That is the result.
(2) With
respect to salary increases for staff the Leader of the Opposition has
repeatedly named in this Parliament, they are contract staff. They are
term-of-government staff. Yes, some adjustments were made and they were large,
but they are contract staff; they do not have any of the benefits or
entitlements that normal public servants have.
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