The Coalition Government’s decision to increase the National Minimum Wage by 50 cents from August 1 and another 50 cents next April has drawn criticism from Leader of Opposition Inia Seruiratu.
During his budget response in Parliament yesterday, Mr. Seruiratu argued that workers at the lower end of the employment spectrum deserve a living wage.
“The lift in minimum wages is welcome, but many workers believe that the 50 cents increase is far from sufficient to compensate them for the significant rises in prices of basic goods, food items, and services,” Mr. Seruiratu said.
“The continued rise in the cost of living is something that the Government should be concerned about. In April, our inflation rate—the rate at which the prices of goods and services have increased—rose to 7.1 per cent, which, according to newspaper reports, was the highest observed in the last 10 years.”
“It has been noted that the rise in prices is largely due to the VAT increase introduced in the previous years’ budget.”
He emphasized that once the prices of goods increase, it would be difficult to reverse the price hike.
“The reluctance of the Government to reduce VAT from 15 per cent to nine per cent in the current budget to help relieve citizens from the high cost of living is a concern. This shows the Government’s lack of compassion for the underprivileged within our communities.”
“When prices increase, the poor will always lose, becoming poorer, while the rich get richer.”