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Pre-poll

tax deal
mooted
in Govt

By IAN COLLIER

Support is growing within the se

nior ranks of the Federal Govern
ment for an Economic Statement to
be delivered when Parliament re
sumes at the end of February.

The statement would specifically ad
dress a wages-tax agreement between the
Government and unions which would be
hammered out under the Accord.

This would then become a springboard
to an election campaign with .the Govern
ment clearly stating how great a wage rises
and how big a tax break workers would get
during 1990.

It would allow the Government to go
on to the front foot against the Opposition
in a wide range of policy areas, including
industrial relations, pointing out that
workers and families will get guaranteed
tax relief and pay increases from July 1,
while under the Opposition's policy of
severely downgrading the centralised
wage-fixing system, many families and
workers may miss out or even be in a
worse position.

The Government would then be in a
position to run a campaign surrounding
financial uncertainty for workers and fam
ilies under a Peacock Coalition govern

ment.

An Economic Statement in late Febru
ary would also put extreme pressure on
the Coalition to reveal immediately de
tailed tax rates and specific details on their
approach to health care through the Medi
care levy.

Such a move would allow the Govern
ment to dominate what would then be
come the final parliamentary session
before the election campaign.

Senior economic ministers, including
the offices of the Treasurer, Paul Keating,

and the Minister for Finance, Senator Pe
ter Walsh, have closed ranks and refused
any comment about the possibility of a

statement. .

But it is known that the issue has been
and is' being canvassed by senior
ministers.

The ACTU and the Government will
begin meeting on the tax-wage deal either
later this month or early in February, and
'Parliament is set to resume on February

20 for a two-week session.

According to reports there have already
been a number of informal talks between
the ACTU and the Government.

It is believed the unions will push for
full wage indexation during 1990, giving
workers a wage rise of about 6.5 per cent
under the current consumer price index.

As well, the Government has indicated
support for the gradual introduction of a
further 3 per cent for occupational super
annuation.

News of support for an Economic
Statement comes as all the major parties
gear up for an election.

The Opposition Leader, Andrew Pea
cock, will deliver a key-note address to the
national convention of the Young Liber
als in Adelaide this morning.

Details of the speech are being closely
guarded but it is believed Mr Peacock will
use the speech to set the issue questions
within the political agenda.

The Liberal Deputy Leader and Oppo
sition spokesman on industrial relations,
Senator Fred Chaney, addressed the con
ference yesterday, drawing attention to an
issue the Opposition believes will be a
vote winner — the centralised wage-fixing
system and the prices and incomes Ac
cord.

Continued on Page 2

Pre-pool tax
deal mooted
Continued from Page 1
"If there is one area of our society where
individual rights are treated with particu
lar contempt, and where the power of the
bureaucracy is particularly exalted, it is
"our industrial-relations system," Senator
Chaney said.
"Under the centralised wage-fixing sys
tem, the recruitment, selection, deploy
ment, working hours, payment,
termination, and post-employment bene
fits of employees, and the conditions un
der which work is undertaken, are all
subject to third-party regulation.
"It is becoming increasingly clear that
the Accord represents not just a dead hand
on our economy but a dead hand on bur
rights as individuals."
The Leader of the National Party,
Charles Blunt, is also cranking up his ju
nior Coalition partner colleagues for an .
election.
Mr Blunt said yesterday that the Na
tionals' 1990 federal election campaign
would begin in Queensland next week.
He would spend five days campaigning
in that state and during his visit would
launch the Coalition's North Queensland
policy.
He will visit a number of areas, includ
ing towns in key marginal seats that the
Opposition has to hold and those the Co
alition has to win in the coming poll.
The Opposition is aware it has to make
up enormous ground in the northern state
auer the debacle for the conservatives in
the state election last month.
If the election result is close, a good
showing by federal Labor in retaining its
current crop of electorates in Queensland
plus adding one and possibly two seats —
Kennedy and Dawson — could mean the
difference between winning and losing.
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