31 Jul 2006

Fiji Chamber of Commerce backs civil service pay cut

10:44 am on 31 July 2006

The Fiji Chamber of Commerce says the government should cut the take home pay of civil servants to prevent a national financial crisis.

The Fiji Times reports the Chamber was responding to a warning by the Reserve Bank that the government cut the civil service pay, implement measures to discourage import consumption and reduce state borrowing.

The chamber president, Taito Waradi, says the national economy is in trouble and a pay cut would help it recover.

Mr Waradi says cutting the public service age bill is important because it takes up a huge portion of the national budget, adding that the time to act is now before the financial situation worsens.

The finance minister, Ratu Jone Kubuabola, says cutting salaries and wages cannot be done overnight because it involves people.

But he has not ruled out the possibility of raising taxes and tariffs, saying there are several options available.