Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Hansard source

I thank Senator Bernardi for his continued interest in this matter. The additional cost of the 12 per cent wage rise would be around $1,500 million over three years. Two weeks ago, the CPSU's national secretary, Ms Flood, spoke to a parliamentary committee about the desirability of the CPSU's 12 per cent wage claim being fully supplemented—that is, money simply given to agencies. She acknowledged, however, that successive governments of all persuasions—both Liberal and Labor—have chosen not to do this.

This would mean that the extra $1.5 billion worth of wage increases would simply go on the national credit card. From our point of view, we simply cannot keep borrowing from overseas to pay for public sector wage rises and all without any appreciable productivity offsets.