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FRIDAY, NOVEMBER 15, 1991
PRIVATE SECTOR URGED TO KEEP PAY LEVEL UNDER RESTRAINT
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IT IS IMPORTANT THAT THE PRIVATE SECTOR SHOULD KEEP THE LEVEL OF ITS PAY AWARDS WITHIN INFLATION AND CONTROL
INCREASES IN ORDER TO COMPLEMENT THE GOVERNMENT'S EFFORTS IN CURBING INFLATION, THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, SAID THIS (FRIDAY) EVENING.
**ANY RESTRAINT ON THE PART OF THE PRIVATE SECTOR WILL BE REFLECTED IN THE PAY TREND SURVEY AND WILL BE MATCHED BY THE CIVIL SERVICE," MR MACLEOD SAID.
"IT IS IMPORTANT ALSO THAT THE BENEFITS OF PAY RESTRAINT IN THE PRIVATE SECTOR ARE USED TO KEEP PRICE INCREASES TOO UNDER RESTRAINT, SO BENEFITTING EVERYONE BY BREAKING THE PRESENT COST-PRICE SPIRAL."
"FOR OUR PART, IN KEEPING WITH OUR OBJECTIVE THAT THE GROWTH OF GOVERNMENT EXPENDITURE MUST NOT AGGRAVATE INFLATIONARY PRESSURES, WE WILL CONTINUE TO ADOPT AN AUSTERE APPROACH IN CONSIDERING THE ANNUAL ADJUSTMENT OF CIVIL SERVICE SALARIES NEXT YEAR, HE ADDED.
SPEAKING AT THE ANNUAL BALL OF THE RETAIL MANAGEMENT ASSOCIATION, MR MACLEOD NOTED THAT CIVIL SERVANTS CONTRIBUTED TO THE EFFORT TO CURB INFLATION THIS YEAR BY ACCEPTING A NON-INFLATIONARY PAY INCREASE.
THE SALARY INCREASE FOR THE CIVIL SERVICE FOR ANNOUNCED IN MAY, WAS 10.43 PER CENT. THIS WAS BASED ON THE IN THE COST OF LIVING MEASURED BY THE CONSUMER PRICE INDEX THE PREVIOUS 12 MONTHS.
"AGAINST THE BACKGROUND OF HIGH INFLATION AND SLOWER GROWTH, IT WAS GENERALLY CONSIDERED A FAIR AWARD, HE SAID,
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1991-92,
INCREASE
(A) OVER
ECONOMIC
HE STRESSED THAT THE GOVERNMENT WOULD CONTINUE TO DO WHAT IT COULD TO TACKLE THE INFLATION PROBLEM. "BUT THE GOVERNMENT CANNOT GO IT ALONE IN THE FIGHT AGAINST INFLATION. WE LOOK TO THE PRIVATE SECTOR TO JOIN FORCES WITH US.
"THE DECISION OF LEADING BANKS THIS WEEK TO TIGHTEN THEIR MORTGAGE LENDING POLICIES IN A BID TO DAMPEN PROPERTY SPECULATION IS A WELCOME EXAMPLE.
M
"THE MOVE PROVIDES A TIMELY BOOST TO THE OTHER MEASURES WE HAVE TAKEN WITH THE AIM OF TAKING THE STEAM OUT OF INFLATIONARY PRESSURES, HE SAID.
ON THE RETAIL INDUSTRY, THE FINANCIAL SECRETARY SAID RETAIL SALES IN AUGUST REACHED OVER $12 BILLION, UP 27 PER CENT IN VALUE ON A YEAR PREVIOUSLY.
"AND SOME OF THE RESULTANT PROFIT IS BEING PLOUGHED BACK IN THE FORM OF LABOUR SAVING TECHNOLOGY.
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