The Coalition Government’s move to increase the National Minimum Wage by 50 cents from August 1 and by another 50 cents next April has drawn criticism from the Leader of Opposition, Inia Seruiratu.
During his budget response in Parliament yesterday, Mr. Seruiratu emphasized that workers at lower employment levels deserved a living wage. He acknowledged the wage increase but argued that it falls short of addressing the significant rises in the prices of basic goods, food items, and services.
“The lift in minimum wages is welcome, but many workers view the 50 cents increase as insufficient to compensate for the substantial price increases of basic goods, food items, and services,” Mr. Seruiratu stated.
He highlighted the government’s need to address the continued rise in the cost of living. “In April, the inflation rate reached 7.1 per cent, the highest in the last 10 years, largely due to the VAT increase introduced in the previous year’s budget,” he explained.
Mr. Seruiratu pointed out the difficulty in reversing price hikes once they occur, criticizing the government’s reluctance to reduce VAT from 15 per cent to nine per cent in the current budget to alleviate the high cost of living. He described this hesitation as a lack of compassion for the underprivileged within the community.
“When prices increase, the poor suffer the most, becoming poorer, while the rich get richer,” he concluded.