Prof. Prasad confirms current minimum wage will be reviewed after Chaudhry raises concerns on wage rates and cost of living

The workers of this country know that the coalition government has already restored some of their lost rights and benefits and more will come including a review of the current minimum wage through proper consultation and dialogue with unions and employers.

This has been highlighted by the Deputy Prime Minister and Minister for Finance Professor Biman Prasad following concerns raised by Fiji Labour Party Leader, Mahendra Chaudhry that there is hardly any mention of workers and their wage rates in the 160-page report of the Fiscal Review Committee that deals fairly comprehensively with almost all aspects of the nation’s socio-economic challenges.

Chaudhry says particularly so when one considers that poor wages has always been seen as the root cause of poverty and addressing poverty is one of the pivotal issues considered by the report especially in relation to the team’s recommendation for imposing VAT on basic food items which is currently zero-rated for the tax.

He asks didn’t all the three partners of the current Coalition government make promises in the election campaign to increase the minimum wage rate and reduce the high cost of living.

Chaudhry says instead they are doing just the opposite considering that increasing VAT to 14 percent as recommended by the Committee, without a corresponding increase in wages, will substantially increase the cost of living across the board, including the cost of utilities.

The former Prime Minister says in Chapter Three, titled the Social Dimension, the Committee report reveals that in their submissions to the Committee, people had asked for increase in wages and reduction in the cost of living, two very important concerns today.

He says yet the Committee totally ignores the question of wage increases, except perhaps in relation to retaining qualified medical personnel, nor does it say anything about addressing the high cost of living.

Chaudhry says this says a lot about the focus and interests of the members of the Committee most of whom are either accountants, well paid professionals from other fields, or businessmen.

He says not a single trade unionist sat on the Committee.

The FLP Leader says considerable emphasis has been placed on softening the impact on the poor of raising VAT, particularly its imposition on basic food items, by some obscure recommendations for direct targeted income support assistance to low income families.

He says in effect, this means more charity and token handouts to the poor but asks what does this do to a person’s self respect or sense of dignity.

Chaudhry says none of this is going to benefit or alleviate the plight of the workers as they will not qualify for such payments by virtue of being in paid employment, even if this is abysmally low.

He says neither has the Committee considered the critical issue of workers, professionals, tradesmen and artisans leaving the country in droves for better pay and quality of life overseas.

He says this accelerated exodus is the biggest challenge facing the nation today.

The FLP Leader says we know that Fiji faces a critical shortage of even labourers (cane cutters), bus drivers, cooks and hotel workers because they are being lured overseas for better pay.

Chaudhry says in such a situation, the Minister’s call for visa free entry for our people into Australia and New Zealand makes little sense.

He adds anyone who thinks that Finance Minister Professor Biman Prasad is going to make good his election promise to increase the minimum wage rate to $5 an hour in Friday’s Budget – would be weaving castles in the air.

While responding to Chaudhry’s comments, Professor Prasad says Chaudhry - who is talking about a promise made during the 2014 general election – is a man who joined the military government after the 2006 coup and helped trash labour laws.

He says Chaudhry who was also instrumental in curtailing labour rights, is lost in his own historical political blunder.

Meanwhile, Professor Prasad has confirmed that the government will leave the zero-rating where it is and the current rate of 9 percent VAT will increase.

He says they will provide some increased support to people currently on the social welfare system because they are the ones who will be hardest hit by these increases.