26 Aug 2002

PNG government to announce cost cutting measures

3:27 pm on 26 August 2002

The Papua New Guinea government is today expected to announce what measures it has adopted to cut the public sector wage bill in its efforts to shore up government finances.

The public service minister, Puka Temu, had proposed to union members that wages be cut by ten percent but this has met with strong objections.

After talks, the union leaders now claim that the proposed cut will not be put in place.

Dr Temu has described the financial situation as serious, with about 30 million US dollars needing to be saved each year.

Public sector unions say their members cannoty be made to pay out of their pockets for the mistakes and mismanagement by leaders and wrong advice from what they call re-cycled departmental heads.

Dr Temu has confirmed that salaries of departmental heads will be cut.