HAVING long been slow and cautious about putting a figure on its election pledge of a national minimum wage, the government today gave clear signals that it will not be much - and, moreover, that young people may be exempt.

This is sure to upset the trade unions who have £4.40 an hour as their ideal.

But New Labour, with the tenets of the Tories' flexible labour policies firmly grasped, is obviously determined to write its own score - with a pro-business and pro-enterprise theme.

True, it has handed the task of recommending a figure to the independent Low Pay Commission.

But ministers today insisted that the full economic impact on employment, inflation and firms' competitiveness of a minimum wage must be taken into account when the level is set.

This suggests that expectations must fall in line with reality.

And some of that was spelled out to it today in the largest ever survey of firms on the minimum wage's potential impact.

A British Chambers of Commerce report is warning that too high a figure would cause unemployment, increased prices, cuts in working hours and wage inflation.

However, many other countries have introduced minimum wage legislation without serious pain.

Yet, coupled with the possible exemption of young people up to 25, the government's signal today to the Commission suggests it is anxious to avoid any pain at all, even if it means that its promise of a minimum wage becomes tarnished in the eyes of the trade unions and that of many low-paid voters.

And why the exemption for young people?

Pay levels for juniors have traditionally been lower than those of adults, though many in their twenties are clearly that and have family responsibilities, too.

But could it be that this step is allied to the government's Welfare to Work programme aimed at reducing unemployment among the young?

For the step smacks of a desire to create as many employment opportunities for them as possible, even if part of the mechanism is for them to be low-paid, bottom-rung jobs.

Cheap labour, the unions might say.

But better than no jobs at all, others might add.

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