New Minimum Wage Not Enough: Seruiratu

The Coalition’s Government 50 cents increase in National Minimum Wage from August 1 and by another 50 cents next April, has been criticised by the Leader of Opposition Inia Seruiratu.

Mr Seruiratu, while making his budget response in Parliament yesterday, told Government that workers at the bottom rungs of employment ladder deserved a living wage.

“The lift in minimum wages is welcome, but many workers are of the view that the 50 cents increase is far short of compensating them for the significant increases in prices for basic goods, food items, and services,” Mr Seruiratu said.

“The continued rise in the cost of living is something that Government should be concerned about. In April, our inflation rate – the rate at which the prices of goods and service has increased, rose to 7.1 per cent, which according to newspaper reports was the highest observed in the last 10 years.

“It has been noted that the rise in prices has been due in large to the VAT increase introduced in the previous years’ budget.”

He said Government must note that once the prices of goods increase, it would be difficult to reverse the price hike.

“The reluctance of Government to reduce VAT from 15 per cent to nine per cent in the current budget to help relieve citizens from the high cost of living is a concern. This demonstrates Governments’ lack of compassion for the underprivileged within our communities.

“When prices increase, the losers will always be the poor, as they will become poorer, while the rich get richer.”

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