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'Slave' labour 164 cents less than Keating's solution



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Ian McLachlan

Shadow Minister for Industry and Ggggjerce

'SLAVE' LABOUR 164 CENTS LESS THAN KEATING'S SOLUTION

It was absolute nonsense for the Prime Minister to describe the Coalition's basic training wage as slave labour when the difference between his plan and the Coalition's alternative was a maximum of $1.64 per week, the Shadow Minister

for Industry and Commerce Ian McLachlan said today.

'Electoral desperation has led the Prime Minister to make statements on youth unemployment which he knows are quite wrong and cruelly misleading to our young people.

'The Coalition's proposal for the 15 to 17 year olds is a minimum of $120 per week if they work for 40 hours at $3 per hour - which would get thousands of youngsters a start in the workforce and would attract no tax under the

Coalition's proposed taxation reform which lifts the tax free threshold.

'The Government on the other hand, proposes to tax the $125 per week it would pay these young people and apportion their training fund to an institution. They would pay $220 per annum in tax, giving them a net wage of $120.77cents per week - 77 cents per week more than under the Coalition's arrangements.

'Again, the 18 to 20 year olds working at the basic training rate of $3.50 per hour for a 40 hour week will earn a minimum of $140 per week on which they would pay $72.80 per year in tax - 87 cents per week, to earn a net weekly income of $139.13.

'As well, all of these young people will have the,benefit of a $2,000 training voucher which is the pro rata equivalent of $19 per week over two years. .

'Under the Government plan, the 18 to 20 year olds will be paid $150 on which they will be taxed $480p.a, or $9.23 per week - earning a net wage of $140. 77.

'To suggest th at $1.64 cents is the difference between slave labour and a wage is a mark of political desperation.

'As we contemplate the disastrous circumstances now facing young people in Australia, the first priority must surely be to get a commitment from them and have them in the workforce as quickly as possible.

'Playing politics with 164 cents will do little to speed up th at process,’ Mr McLachlan said.

Further information: Ian McLachlan, Shadow Minister, Industry and Commerce, Telephone: 08 2377140. 29 July, 1992. COMMONWEALTH

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