Conditions

Rebuild services before cutting taxes - unions

The ACTU Executive meeting in Melbourne today passed a resolution saying that it does not support further across the board tax cuts ahead
of appropriate funding for education and health services.

ACTU President Sharan Burrow said quality public education and health services were the basis of a fair society and were being eroded by the
Howard Government's policies.

"Working families would benefit far more from decent education and health services than they do from the Howard Government's insignificant tax cuts," Ms Burrow said.

"Many working families cannot afford Medicare co-payments, higher university fees or increasing childcare costs. Another lousy tax
cut is not the answer. Public services need to be adequately funded and resourced."

Ms Burrow said the unions would support tightly targeted tax reforms to benefit low income working families but would oppose across-the-board tax cuts.

An ACNielsen AgePoll after the Federal Budget in May 2003 showed that 77% of people would prefer the Government to spend more on services
such as health and education instead of giving tax cuts; only 20% of people would prefer tax cuts.

Increasing health, education and childcare costs were the fastest growing components of the Consumer Price Index in the year to March
2003, according to the Australian Bureau of Statistics: childcare costs increased by 16% compared to average inflation of 3.4%; health costs increased by 7.2%; and education costs increased by 4.9%. This year's Federal Budget tax cuts provide only about a 2% benefit to average wage earners.

Since the Howard Government came to office, the rate of bulk billing by GPs has fallen to an all time low of 68.5% while the average cost of seeing a doctor who does not bulk bill has risen by more than 55%.

The ACTU Executive today and tomorrow is considering policies to go before the unions' triennial ACTU Congress meeting of more than 800
delegates in Melbourne next month.

© 2001 Community & Public Sector Union - State Public Services Federation (CPSU-SPSF) - National Office

http://www.cpsu-spsf.asn.au/campaigns/schools/20030715_149.html
Last Modified: 15 Nov 2005