The Coalition Government’s decision to raise the National Minimum Wage by 50 cents from August 1 and an additional 50 cents next April has come under fire from Opposition Leader Inia Seruiratu.
During his budget response in Parliament, Mr. Seruiratu stated that workers at the lower end of the employment spectrum deserve a living wage.
“While the increase in minimum wages is a positive step, many workers feel that the 50-cent hike falls far short of compensating for the significant price increases of basic goods, food items, and services,” Mr. Seruiratu said.
“The ongoing rise in the cost of living is a matter of concern that the Government should address. In April, the inflation rate—the rate at which the prices of goods and services have risen—reached 7.1 percent, the highest observed in the past decade according to newspaper reports.”
Mr. Seruiratu attributed the rise in prices largely to the VAT increase introduced in previous budgets. He pointed out that once prices go up, it is difficult to reverse the increase.
“The Government’s reluctance to reduce VAT from 15 percent to nine percent in the current budget to help alleviate the burden on citizens from the high cost of living is troubling. This shows a lack of compassion for the underprivileged in our communities,” he said.
“When prices rise, the poor suffer the most, becoming poorer while the rich continue to become richer,” Mr. Seruiratu concluded.