States ‘have met inflation target’

Thursday 27th April 2006, 12:00AM BST.

STATES spending for 2005 increased at a rate below inflation, Chief Minister Frank Walker revealed to an audience of business leaders yesterday.

He said the States accounts would be published soon and would show that for the second year running, increases in public spending would be below the rate of inflation.

He did not reveal the figures but as the end-of-year rate of inflation rate was 2.2% the increase in States spending is now expected to come out at below that figure.

Meanwhile, the Senator, who heads the body which will negotiate pay awards with public sector workers, said this year’s pay round would be a crucial test of the anti-inflation policy.

And he made it clear to unions that ‘there can be no return to the inflation-busting pay deals of the past’.

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