Vic: Wage restraint vital, says Costello

AAP General News (Australia)
02-02-2000
Vic: Wage restraint vital, says Costello

Treasurer PETER COSTELLO has called for restraint on wage claims in the wake of the
half percentage point interest rate rise announced by the Reserve Bank.

Mr COSTELLO says the bank has issued what he calls a very important warning that wage
demand should be be restrained.

He says if developments on the wages front continue, it could have effects on inflation
and interest rates.

He says that is one of the reasons why the government calls on people, particularly
in the building industry, both employers and employees, to exercise restraint.

Mr COSTELLO says large wage claims are being made, particularly in the building industry
and in Victoria, which if successful, would impact on inflation and affect interest rates.

AAP RTV lmw/sp/wz/jn

KEYWORD: RATES COSTELLO (MELBOURNE)

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