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State sector workers cannot expect pay increases in the futureunless they are matched by productivity gains, Finance Minister BillEnglish said today.
Mr English told MPs that anyone whose paycame from the taxpayer should realise the Government faced 10 years ofdeficits and the public sector had to provide "smarter, better"services with limited funding.
The Government would honour contracts settled by its predecessor in pay rounds prior to the election.
Theseincluded senior doctors who received a 4.25 per cent pay increase atthe end of June and nurses who received a 4 per cent increase in March.
"No one should take these pay increases as an indication of settlements in the near future," Mr English said.
"That kind of pay rise is no longer sustainable."
Most in the private sector were receiving nothing or little extra in current pay rounds, Mr English said.
"ManyNew Zealanders see state sector workers as having relatively securejobs and would be concerned if the representatives of state sectorworkers were out of touch with what is going on in the wider community."
Mr English said the public sector had been used to large on-goingincreases, but next year's budget allowed for only a $1.1 billionincrease in total spending across the entire budget.
"We havegiven the whole public sector 12 months that they need to be looking ata much wider range of tools to be able to secure productivity gains andmeet public expectation without large and reckless spending increases."
Anypay increases in the public sector would have to be matched byproductivity gains, which had been at "appalling" levels in recentyears.
Asked if he was telling primary school teachers and nursesthat they could expect no pay increases in 2010, when their currentcontracts expired, Mr English indicated they could not expect increases.
"We are signalling very clearly there will be restrained funding," he said.
"Thoseprofessional groups whose dedication we admire and services we needhave the opportunity to think about better ways of working, but thedays of going to ministers and getting large increases at the expenseof the taxpayer without any productivity gains are over."
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10582112 |
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