Public Sector Wage Growth

Mr ANDREW STONER: My question is directed to the Premier. Given the inflation rate is significantly higher than the 2.5 per cent cap the Premier has placed on public sector wage growth, when hardworking teachers, nurses, police and firefighters re-negotiate their salaries this year will the Premier cut their real wages or blow his budget?

The SPEAKER: Order! Government members will remain silent.

Mr MORRIS IEMMA: There have been 11 wage settlements under the Government's wages policy. The Opposition has discovered the 2.5 per cent wages policy today. Its members have read a budget paper or they have surfed the Internet to have a look at the online version of the Daily Telegraph or the Sydney Morning Herald. While members opposite were sleeping there were 11 wage settlements under the Government's 2.5 per cent wages policy. Those settlements have ranged between 4 and 5 per cent. They have all been consistent with the 2.5 per cent wages policy; that is, the agencies were funded for 2.5 per cent and those settlements of between 4 and 5 per cent were all funded via offsets. The Government's wages policy, which the Leader of The Nationals misrepresented in his question, is for 2.5 per cent and allows for wage claims and settlements above 2.5 per cent. All it states is that is has to be paid for.