Government and Unions Continue Talking

It's been removed from the glare of public scrutiny for two weeks but talks between the Unions and the Government have continued. The question is what tax measures will be implemented on March 1st. Tonight 7NEWS has confirmed that those talks are at a critical juncture as the unions feel that government has rejected its proposals. As we report this, Financial Secretary Dr. Carla Barnett is meeting with the working group form the Trade Union Congress to find middle ground. According to out sources, the stumbling block is the level of sin taxes that would be imposed, specifically excise tax on local beer. The Unions have at all times insisted that it revert to the 1998 level of $13.88 a gallon, while the government has preferred to keep it at $3.60 a gallon. With that, and a week to go before the new tax measures are introduced, we are advised that discussions are at a fragile stage. If talks do breakdown and agreement cannot be reached some elements in the union are ready to re-launch industrial action, while moderates are calling for more dialogue. We will follow this and have more tomorrow.