March 31, 2022
THE President of the Papua New Guinea Trade Union Congress John Paska, in a media release labeled the government’s intention to reduce the GST as a means to ease inflationary induced costs as the economic ‘Joke of the Century’.
“How on earth does Treasurer Ian Ling-Stuckey reason releasing more cash into the economy will ease inflation? This is so preposterous that it can make a cat laugh.”
Paska said more money in hand would mean more spending and more spending would drive inflation crazy.
“Therefore, cutting GST will bring about the opposite result; it’s the wrong prescription.”
Paska said the inflationary induced high cost of basic goods and services that is severely hurting the pockets of ordinary folks and workers is government policy driven.
“It leads out directly from debt trap Treasurer Ling-Stuckey set for the nation. Union, among the others warned him about the inflationary effects of his care free borrowing for projects the country did not need. The treasurer then went about dismantling the Central Bank Act and converted the bank into a ‘cash cow’ apparently to feed his voracious ‘mates’ politicians on the eve of national elections, thereby adding to inflationary woes.”
Paska added that opening the doors to the Central Bank vaults released untold millions into the market, creating the ‘perfect storm’ for inflation to take off on a trajectory which viciously attacked the pockets of workers and ordinary folks.
“In his panic mode, the Treasurer advised the Prime Minister to take the heat and announce cuts to the GST. Reducing the GST will simply open up another wound in the coffers of Urban LLGs who frame their budgets around GST remittances. Except for the Prime Minister, the entire nation has figured out the shortfalls of his Treasurer who seems to solve fiscal problems by creating more fiscal problems.”
Paska made a call that workers must be fully compensated for the loss of purchasing power of their wages as a result of careless borrowings and wasteful spending.
“Apportioning a lousy 2% of GST to workers’ wages is the greatest insult to workers and we reject it outright.”
