Australia Morrison Govt advised against wage guarantees

01:15  22 march  2020
01:15  22 march  2020 Source:   skynews.com.au

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A wage guarantee, such as the one unveiled by British Prime Minister Boris Johnson last week, is not being considered by the Morrison Government, Sky News Political Editor Andrew Clennell says.

Prime Minister Scott Morrison and Treasurer Josh Frydenberg will on Sunday outline their $66 billion plan to assist small businesses and Australians doing it tough due to the economic pain caused by the COVID-19.

But Mr Clennell reported, unlike the stimulus package rolled out in the UK, it will not include wage guarantees due to the concern the payments would not flow onto workers.

“The sort of wage guarantee that British Prime Minister Boris Johnson unveiled just a day or two ago is not being announced and not being planned for at the moment,” he said.

“Treasury advice in Australia is not to proceed with the payment of wages or guarantee of wages in distressed industries.

“The government believes there will be major problems with integrity and making sure businesses pass it on to salary earners.”

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