NSW: Egan says nurses' pay rise will be factored into budget

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NSW: Egan says nurses' pay rise will be factored into budget

SYDNEY, Dec 19 AAP - The almost 16 per cent payrise for nurses would result in a $120million-a-year slug on the NSW budget, Treasurer Michael Egan said today.

However, the government had no plans to appeal the decision handed down today in theNSW Industrial Commission which will mean a $420 million drain on the budget over thenext four years, he said.

Mr Egan said nine per cent of the rise had already been factored into this year's budgetwith the remaining amount an additional cost to the government.

"The additional six per cent that was awarded today wasn't factored in and that willbe a cost in this coming financial year of just under $60 million and an annual ongoingcost of just under $120 million," Mr Egan said.

Mr Egan said it was important that the budget be able to sustain such extra pressuresand warned there was no room for wild election spending in the coming months.

"It's very important that a budget be in a position to be able to cope with those thingswithout going into the red," Mr Egan said.

"There is no scope for wild spending promises in the coming election."

Possible wage claims by the state's teachers and police would also be dealt with whenthe time came, he said.

"We are no strangers to industrial relations wage bids, the next round we will facewill be our third major round during our time in government and we will negotiate thoseissues when the time comes."

Mr Egan said a mid-year financial statement would be released in the coming days.

AAP swe/nf/mg/sb

KEYWORD: NURSES NSW EGAN