Fed: Costello says lower wages for bush only for unemployed

AAP General News (Australia)
12-13-1999
Fed: Costello says lower wages for bush only for unemployed

CANBERRA, Dec 13 AAP - A radical plan to cut wages in the bush would only apply to
the hiring of unemployed people and not affect anyone already in a job, Treasurer Peter
Costello said today.

Mr Costello today came under fire from all sides over the proposal, which he floated
in a weekend newspaper interview, with even Liberal colleagues denouncing it as dumb.

But Mr Costello insisted his proposal had been misrepresented, and his plan was simply
aimed at giving greater flexibility to tackling unemployment in regional areas.

"Nobody would suggest for a moment that anybody that's currently in a job would agree
to a wage cut," he told ABC radio.

"What we're saying, though, is if you happen to be unemployed, if you're getting no
wage and you want to get out of unemployment and get into the labour market, the only
way you're going to do it is if there's new investment.

"The only way you're going to get new investment is if it becomes attractive."

Mr Costello said this could take the form of a special below award wage companies could
pay if they hired unemployed people.

"I'm talking about absolute flexibility so that you can attract new investment," he said.

"That can be used to the advantage of new job creation. That's the point. And new job
creation is better for the unemployed."

AAP ss/mfh/apm/br 0

KEYWORD: JOBS COSTELLO (CARRIED EARLIER)

1999 AAP Information Services Pty Limited (AAP) or its Licensors.