A CALL by the TUC for a minimum wage for 16 and 17-year- olds could reduce employment opportunities for students and other young people, a local business organisation is warning.

Rick Hopkins, South West spokesman for the Forum of Private Business said: "This is a key issue for many small firms in the region.

"The cost impact on the service, retail and tourism sectors alone could be significant.

"Young employees may lack skills or training that justifies paying a higher wage and many employers may wish to have the flexibility to decide for themselves whether the minimum wage is extended below the age of 18 years."

The TUC claim that a rate of £3.60 would benefit 45 per cent of young workers.

The FPB however has warned that the recent announcement in the increase of the national minimum wage to £4.50, with another projected increase to £4.85 next year, will only cause further suffering for many businesses.

Said Mr Hopkins: "Most employers respect the view that pay is an incentive to young people seeking employment and pay a rate that recognises this."