Minimum wage rise on cabinet agenda

WELLINGTON - The Labour-Alliance cabinet is likely to decide next week on an increase to the minimum wage.

But Prime Minister Helen Clark gave no indication whether Labour would accept the 50c rise the Alliance advocates.

Speaking after the first meeting of the 20-member cabinet, she said Labour Minister Margaret Wilson had received advice from officials about the implications of an increase.

"She is now going to circulate that to other ministers and we will see if it is possible to act next week."

The wage was unlikely to stay at its present level of $7 an hour for adults.

The cabinet also discussed plans to pass legislation next week to make student loans cheaper and to raise taxes on higher incomes.

It was briefed on the cancellation of Timberlands' West Coast beech logging and on the implications of calling off a deal to lease F-16 fighter aircraft from the United States.

Helen Clark said she hoped the student loan policy would be settled next week.

"We want students enrolling next year not to pay interest if they're fulltime students or low-income part-time students, so we're taking measures to get those systems in place." - NZPA