Government says it has taken note of the declaration of dispute over salary negotiations between its negotiation teams and public service trade unions, NANTU and NAPWU. Secretary to Cabinet Dr George Simaata says the matter has now been referred to the Office of the Labour Commissioner, pointing out government will comply with the legal process. Yesterday, the two unions announced that talks with government reached deadlock because the Government negotiating team could not offer any adjustments due to the prevailing unfavourable economic conditions in Namibia. In response, Simaata said that the Namibian economy contracted over the past two financial years and will only show positive economic growth of between 0.8% and 2% over the next two financial years. Furthermore, Namibia is faced with a persistent drought and it would be irresponsible, according to Simaata, from government to grant a salary increase in the face of the state of emergency over the drought situation and the proposal for a 2% voluntary contribution from all Namibians, is currently on the table. Simaata says government is also faced with other pressing priorities such as reducing youth unemployment, sourcing funding for tertiary education students and provision of jobs for qualified health professionals among other issues.. Trade unions have asked for 9% and 10% salary adjustments for the next two financial years, amounting to N$7 billion.