August 23, 2014
Capitanich says subsidies reduction have no impact on inflaton, wage talks
The new subsidies’ scheme will have an “insignificant” impact on prices, Cabinet Chief Jorge Capitanich has warned saying the decision aims at “encouraging the rational and responsible use of public services.”
In his daily brief to the press at the government house, the head of ministers pointed out that the reduction of public utilities involves a “redistributing effect” since the 13 billion pesos the government expects to collect will be reassigned to the Universal Child Allowance (AUH) and the Progresar cash transfers payments for most vulnerable sectors.
“There is no possible relation between the reduction of subsidies and the collective bargaining negotiations,” Capitanich added, questioning the position by some unions that the decrease of benefits in gas and water services by 80 percent will result in workers’ demands for higher salaries. A "strategy" by trade unionists, the minister insisted, that “have nothing to do with reality.”
“This progressive and gradual reduction in gas and water comes in a context in which the national state has created a strong process of investment to expand the water pipe fitting and sewer systems as well as the supply of gas in order to guarantee the universal access to services,” the head of ministers stated this morning.