Amy: 
Minister, yesterday the federal Labor government said that by the end of the year inflation may reach 7.75 per cent, yet nurses are being offered an increase of just four per cent on their base rate this year. What is the government’s plan to make sure that hardworking healthcare workers who have been on the front lines of the pandemic get properly paid?


Minister for Health and Ambulance Services:
I thank the member for the question. The pay offer that has been put forward in addition to any other arrangements we enter into through the bargaining process—obviously the base salary increase is just one component of improvements to their wages and working conditions available through the bargaining process—is one of the most generous offers across the country right now. We are pleased that we can offer that. I acknowledge the tremendous work that our health workers do each and every day. They are worth every cent we pay them. The original offer was going to be 2½ per cent, and I am very grateful that, because we have managed the budget well and the work the Treasurer has done, we are able to offer this additional increase. It would be misleading to say that four per cent is the only benefit they will get through the bargaining process.


Amy:
Minister, would the government see this as an effective pay cut for workers? If inflation does reach 7.75 per cent we will effectively be giving our frontline healthcare workers a pay cut in real terms.


Minister for Health and Ambulance Services:
I thank the member for the question. If the member can point to anywhere in the economy right now where businesses are offering over seven per cent wage increases per annum I would be very interested to see that—or any government, for that matter.

Our without prejudice offer to the nurses and midwifery union in June this year includes an annual increase to wages and allowances—so allowances as well—of four per cent, four per cent and three per cent over the forward years with a cost-of-living adjustment and other items. We have built in a cost-of-living adjustment as well to factor in that we know there are escalating costs and inflation. We recognise that, and that has been built in as part of the without prejudice offer.

Amy:
If we do reach 7.75 per cent that cost-of-living adjustment of three per cent will still not be enough to make sure that workers—


Chair:
That is giving an opinion.


Minister for Health and Ambulance Services:
It is still the highest pay rise offered to nurses across the country.