g3
EMBARGO 8.00 P~ rm. SATURDJAY 90 JUNE 197LI
ADDRESS BY THE PRIME MINISTER, MR E. G. WHITLAM, M. P.,
TO THE SECOND NATIONA~ L CONVENTION OF THE INDUJSTRIAL RELATIONS
SOCIETY " INDUSTRIAL RELATIONS THE POWER GAME"
CHEVRON HOTEL, SUJRFERS PARADISE, SATURDAY 29 JUNEF 3,97
THIS IS MY SECOND ADDRESS AS PRIME MINISTER TO THE
INDUSTRIAL RELATIONS SOCIETY OF AUSTRALIA. SINCE I SPOKE TO
YOU JUST OVER A YEAR AGO AT TERRIGAL, I SUPPOSE I HAVE LEARNED
MORE ABOUT THE SORT OF " POWER GAME" THAT TOOK PLACE IN THE
BRITISH TV' SERIES THAT CARRIED THAT TITLE. IHAVE HAD ONE
EXPERIENCE THAT NEVER SEEMED TO THREATEN THE ORDERED
MACHIAVELLIAN LIVES OF THE PROTAGONISTS OF THAT SERIES-I
HAVE SURVIVED AN ELECTION. HAVING SAID THAT, I WILL IGNORE THE
OBVIOUS ALLUSION To TV DRAMAS CONTAINED IN THE TITLE OF
YOUR SEMINAR, INSTEAD, FOR A MOMENT I W4ILL PURSUE AN ANALOGY
APPROPRIATE TO OUR SPORTS-MINDED NATION.
IN THE POWER GAME OF INDUSTRIAL RELATIONS, THE
AUSTRALIAN GOVERNMENT HAS A MOST PECULIARLY MIXED ROLE. AS A
LAW-MAKER, IT HAS SOME OF THE ATTRIBUTES OF THE GOVERNING BODY 0-
A SPORTING CODE. IT HAS SOME OF THE FUNCTIONS OF AN UMPIRE OR
REFEREE IN HELPING . TO SEE THOSE RULES IMPLEMENTED. AT TIMES
IT ACTS AS A COACH IN HELPING TO GUIDE THE OPPOSING TEAMS IN THE
PLAYING OF THE GAME. AND, AS A MAJOR EMPLOYER, THE GOVERThIENT
IS ALSO, OF COURSE, A KEY PLAYER. THE ONLY ROLE IT H4AS
ABANDONED SINCE 1972 IS THAT OF TRYING INEFFECTUALLY TO BE THE
EQUIVALENT OF THlE JUDICIAL TRIBUNAL OF A SPORT IN COLLECTING
FINES FOR WHAT SOME MIGHT JUDGE TO BE FOUL PLAY. DESPITE THE
COMPLEXITY OF ITS POSITION, THE OBJECTIVE OF THE GOVERNMENT'S
ROLE IS CLEAR: IT'MUST SEEK TO REDUCE THE HEAT, MINIMISE THE
CONFLICT IN INDUSTRIAL RELATIONS.
TO DO THIS IT MUST PURSUE TWO GOALS. IT MUST CREATE
A BODY OF LAWS TO ENABLE AUSTRALIA TO HAVE THE MOST MODERN
INDUSTRIAL SYSTEM TO AV/ OID UNNECESSARY CONFLICTS. IT MUST ALSO
HELP CREATE AN ECONOMIC AND SOCIAL ENVIRONMENT IN WHICH THE
FINANCIAL CAUSES OF MANY DISPUTES ARE AS MUCH AS POSSIBLE
ERADICATED. THE PROVISION OF MODERN INDUSTRIAL LAWS WAS THE PRIME
AIM OF THE AMENDMENTS TO THE CONCILIATION AND ARBITRATION ACT
WHICH THE GOVERNMENT INTRODUCED INTO THE PARLIAMENT LAST YEAR.
THESE AMENDMENTS WERE TWICE REJECTED BY THE SENATE AND THE
GOVERNMEN4T WAS OBLIGED TO SHELVE THEM, AT LEAST TEMPORARILY.
ONE OF THE MOST IMPORTANT AIMS CONTAINED IN THOSE AMENDMENTS
WAS THE ENCOURAGEMENT OF THE AMALGAMATION OF TRADE UNIONS.
THE EXCESSIVE NUMBER OF UNIONS IS ONE OF THE GREAT
PROBLEMS DEDEVILLING INDUSTRIAL RELATIONS IN AUSTRALIA.
THERE HAS BEEN A SLIGHT DECLINE IN THE NUMEER OVER THE YEARSFROM
375 IN 1956 TO 305 IN -1972 B3UT THAT IS STILL TOO MANY.
OF THOSE UNIONS, 158 HAD LESS THAN 1,000 MEMBERS; 82 HAD BETWEEN
1,00Q0 AND 5,000 MEMBERS; 28 BETWEEN 5,000 AND 20,000;
23 BETWEEN 20,000 AND 50,000; AND ONLY 14 HAD A MEMBERSHIP
OF OVER 50,0OOR. ONE NEEDS TO LOOK NO FURTHER THAN GOVERN4MENT
INSTRUMENTALITIES TO GET SOME IDEA OF THE EFFECT THIS HAS.
A TOTAL OF 28 UNIONS ARE REPRESENTED IN THE POSTMASTER-GENERAL' S
DEPARTMENT; WORKERS IN THE SYDNEY MAIL EXCHANGE ARE COVERED
BY NO LESS THAN 20 UNIONS. THE WORKFORCE OF TRANS-AUSTRALIA
AI . RLINES IS COVERED BY NO FEWER THAN 26 UNIONS, THiE MEN AND
WOMEN EMPLOYED BY THE COMMONWEALTHi RAILWAYS DELONG TO J14 UNIONS.
I NEED ONLY DESCRIBE AN AIRLINE JOURNEY TO INDICATE THE
ABSURD COMPLEX-ITY THAT EXISTS. IF I WERE TO FLY FROM SYDNEY TO
MELBOURNE I WOULD RUN THE GAMUT OF AT LEAST 3 UNIONS. MY FLIGHT
BOOKING W1OULD BE TAKEN BY A MEMBER OF THE FEDERATED CLERKS UNION.
I WOULD BE DRIVEN TO THE AIRPORT BY A MEMBER OF THE TRANSPORT
111ORKERS UNION. MY PLANE SEAT WOULD BE ALLOCATED BY A MEMBER OF
THE FEDERATED CLERKS UION. MY BAGGAGE WOULD BE TAKEN BY A
MEMIBER OF THE TRANSPORT WORKERS UN'IONI. THE PASSENGER LIST WOULD BE
C HECKED BY A MEMBER OF THE AIRPORT TRANSPORT OFFICERS' FEDERATION.
SECURITY FOR THE FLIGHT WOULD BE HANDLED BY A MEMBER OF THE
FEDERATED MISCELLANEOUS WORKERS' UNION. THE AIRCRAFT WOULD BE
CHECKED BY MEMBERS OF THE PROFESSIONAL PADio ENGINEERS INSTITUTE
OR THE AUSTRALIAN SOCIETY OF ENGINEERS OR THE AMALGAMATED ! AETAL
tIORKERS' UNION OR THE ELECTRICAL TRADES UNION, OR THE ASSOCIATION
OF LICENSED AIRCRAFT ENGINEERS. THE PLANE WOULD BE FUELED BY A
MEMBER OF THE TRANSPORT ! JORKERS UNION. IT WOUJLD BE CLEARED FOR
TAKE-OFF BY THE CIVIL AIR OPERATORS' OFFICERS ASSOCIATION. IT WOULD
BE CREWED BY MEMBERS OF THE FEDERATION OF AIR PILOTS, THE FLIGHT
ENGINEERS ASSOCIATION AND THE AIR HOSTESSES ASSOCIATION, THE FOOD
SERVED ON THE PLANE WOULD BE COOKED BY THE LIQUOR TRADES UNION.
THE EXCESSIVE NUMBER OF UNIONS CREATES PROBLEMS BOTH FOR
THEIR MEMBERS AND FOR THE COMMUNITY AS A WHOLE. THE FRAGMENTATION
OF UNION RESOURCES IN TERMS OF STAFF, FINANCE AND FACILITIES
IMPOSES LIMITATIONS ON THE EFFECTIVENESS OF THEIR WORK. THE
RESEARCH RESOURCES OF UNIONS ARE MEAGRE AND SUFFER BADLY IN
ANY COMPARISON WITH HIGHLY ORGANISED EMPLOYER ORGANISATIONS.
THE FRAGMENTA1ION CAN LEAVE UNIONS IN AN ALMOST IMPOSSIBLE POSITION
IF THEY ARE DEALING WITH A WILL ORGANISED EMPLOYERS GROUP OR A
A
MAJOR COMPANY. TAKE THIE EXAMPLE OF EM~ PLOYEES OF fM ILT I-NAT IONAL
CORPORDATION. THE AUSTRALIAN EMPLOYEES OF SUCH A CORPORATION MIGHT
WELL BELONG To 6 UNIONS OR MlORE. IN ANY NEGOTIATIONS THOSE UNIONS'
ARE CONFRONTED BY AN ORGANISATION WITH THE BACKING OF ENORMOUS
FINANCIAL POWER AND OTHER RESOURCES. IT PLACES THE EMPLOYEES AT
AN ENORMOUS DISADVANTAGE FOR THEIR INTERESTS TO RE REPRESENTED
BY DIFFERENT GROUPS OF VARYING SIZE WHEN CONFRONTED BY SUCH
CORPORATE COHESION. THE DISPERSAL OF UNIONS MUST ALSO INEV/ ITABLY
DIMINISH THEIR POLITICAL INFLUENCE.
THE COMMUNITY SUFFERS BECAUSE THE LARGE NUMBER OF UNIONS GIVES
RISE TO DEMARCATION DISPUTES WHICH ARE A COMMON OCCURRENCE IN THIS
COUNTRY. AN EXAMPLE OF THE PROBLEM CAN BE FOUND IN THE
POSTMASTER-GENERAL'S TEPARTMENT WHERE AT LEAST SIX UNIONS OR
ASSOCIATIONS ARE ELIGIBLE TO COVER EMPLOYEES IN THE TECHNICAL
GRADES. ACTION BY ONE ORGANISATION TO IMPROVE THE CAREER
STRUCTURE OR TO CHANGE THE RANGE OF WORK OF ITS MEMBERS CAN
IMPINGE ON THE RIGHTS OF MEMBERS OF OTHER ORGANISATIONS.
DEMARCATION DISPUTES ARE A READY SOURCE OF PUBLIC
EXASPERATION WITH UNIONS. IT IS NOT SURPRISING IF THE PUBLIC
BECOMES EXTREMELY ANNOYED THAT IT IS DENIED A BASIC SERVICE FOR
SOME TIME BECAUSE OF A STRIKE FOUGHT NOT EVEN OVER WAGES AND
CONDITIONS PUT BECAUSE OF A POWER STRUGGLE BETWEEN UNIONS.
YET THE CONCILIATION AND PREITRATION ACT AT PRESENT
MAKES IT UNNECESSARILY DIFF ICULT FOR UNIONS TO AMALGAMATE.
AT PRESENT, FOR AN AMALGAMATION PROPOSAL TO BE ADOPTED, TWO
CONDITIONS MUST BE SATISFIED: AT LEAST HALF THlE MEMBERS MUST
VOTE AND MORE THAN HALF OF THE FORMAL VOTES MUST BE IN FAVOUR
OF THE AMALGAMATION. IN CONTRAST, THE GOVERNMENT ' S AMENDMENTS
WOULD MAKE IT NECESSARY MERELY FOR A MAJORITY OF THOSE VOTING
TO APPROVE OF AMIALGAMIATION; IT WOULD NO LONGER BE NECESSARY
FOR 50% OF THE UNION MEMBERS INVOLVED TO VOTE ON THE ISSUE. 11/ 5
ALTHOUGH IT HAS BEEN TWICE REBUFFED BY THE SENATE, THE
GOVERNMENT WILL PERSIST IN ITS ATTEMPTS TO ACHIEVE THIS VITAL
LEGISLATIVE CHANGE.
THE GlOVERNMENT IS ALSO DETERMINED TO SIMPLIFY THE
PRESENT SYSTEM OF INDUSTRIAL REGISTRATION. AUSTRALIA HAS FIVE
INDUSTRIAL ARBITRATION REGISTRATION SYSTEMS. THE AUSTP LIAN
CONCILIATION AND ARBITRATION ACT REQUIRES AN EMPLOYER OR
EMPLOYEE ORGANISATION TO BE REGISTERED UNDER THE ACT BEFORE
IT CAN REPRESENT ITS MEMBERS IN THE AUSTRALIAN CONCILIATION
AND ARBITRATION SYSTEM. THERE IS A S: MILAR REQUIREMENT IN THE
INDUSTRIAL ARBITRATION LEGISLATION IN hIEW SOUTH ' JALES, QUEENSLAND,
SOUTi AUSTRALIA AND ' ESTERN AUSTRALIA. THE EFFECT OF
REGISTRATION UNDER EACH OF THESE LEGISLATIVE SYSTEMS IS THAT
EACH REGISTRATION CREATES AN ORGANISATION WITH ITS OWN LEGAL
IDENTITY. THIS CREATES ABSURD COMPLICATIONS IN INDUSTRIAL
RELATIONS, COMPLICATIONS WHICH WERE POINTED OUT BY THE AUSTRALIAN
INDUSTRIAL COURT IN THE CASE OF MOORE V DOYLE IN FEBRUARY ] 069.
AT THE CONCLUSION OF THEIR JUDGMENT IN THAT CASE, CHIEF JUSTICE
SPICER, MR JUSTICE SMITHERS AND PIR JUSTICE KERR ( AS HE THEN WAS)
SAID: " A SYSTEM OF TRADE UNION ORGANISATION IS URGENTLY
NEEDED WHICH WOULD ENABLE THE ONE BODY TO REPRESENT
ITS RELEVANT MEMBERS IN BOTH THE FEDERAL AND STATE
ARBITRATION SYSTEMS AND IT SHOULD BE POSSIBLE FOR
FEDERAL AND STATE AUTHORITIES TO EXAMINE THE QUESTION
WHETHER ORGANISATIONS AND TRADE UNIONS'CAN BE
PROVIDED WITH SUCH A SYSTEM.
WE HAVE DECIDED TO REFER OUR JUDGMENT IN THIS MATTER AND
6.
THESE REMARKS TO THE ATTORNEY-C-ENERAL FOR THE COMMONWEALTH
IN THE HOPE THAT IT MAY BE POSSIBLE, AFTER CONSULTATION
BETWEEN COMONWEALTH AND STATE ATTORNEYS-GENERAL, THE TRADE
UNIONS, BOTH FEDERAL AND STATE, AND OTHER INTERESTED
GOVERNMENT AUTHORITIES TO ARRANGE FOR THE EXAMINATION OF
THE IMPORTANT ORGANISATIONSL MATTERS TO WHICH WE HAVE
REFERRED.
DESPITE THIS URGENT APPEAL THE PREVIOUS GOVERNMENT AND
THE NON-LABOR STATE GOVERNMENTS DID NOTHING. SO IN JANUARY LAST
YEAR I WROTE TO THE PREMIERS OF NEW SOUTH WALES, QUEENSLAND AND
WESTERN AUSTRALIA SU3GESTING THAT THEY MIGHT CONSIDER ADOPTING A
SOUTH AUSTRALIAN PROPOSAL AIMED AT PROVIDING SOLUTIONS TO THE
PROBLEM. THE PROPOSAL PROVIDED FOR THE " RECOGNITION" OF A STATE
BRANCH OF A FEDERAL UNION UNDER STATE INDUSTRIAL ARBITRATION
LEGISLATION. A " RECOGNISED" STATE PRANCH WOULD NOT HAVE A LEGAL
IDENTITY DISTINCT FROM THE FEDERAL UNION BUT WOULD EXIST AS A
PORTION OF THE FEDERAL UNION AND ACT AS THE FEDERAL UNION WITHIN
THE STATE INDUSTRIAL JURISDICTION. THE PREMIER OF OUEENSLAND
INDICATED THAT HIS STATE DID NOT FAVOUR THE FEDERAL BODY OF THE
UNION BEING THE BODY RECOGNISED UNDER STATE LAW. THE OREMIER OF
NEW SOUTH '! ALES SAID THAT HIS GOVERNMENT WAS STILL CONSIDERING
THE MATTER.. HESTERN AUSTRALIA DID NOT REPLY.
THE AUSTRALIAN GOVERNMENT HAS APPOINTED AN INQUIRY UNDER
MR JUSTICE L. B. SWEENEY TO EXAMINE THE PROBLEMS DISCLOSED DY THE
MOORE V DOYLE CASE. THE JUDGE HAS BEEN ASKED TOEXAMINE THE
DESIRABILITY OF A SYSTEM OF ORGANISATION AND/ OR REGISTRATION WHICH
WOULD ENABLE THE ONE BODY TO REPRESENT ITS MEMBERS IN BOTH
AUSTRALIAN AND STATE ARBITRATION SYSTEMS, HOW THIS COULD EE
ACHIEVED, THE EFFECT OF EXISTING REGISTRATION SYSTEMS ON EMPLOYER
AND EMPLOYEE ORGANISATIONS AND THE PROBLEMS AND DIFFICULTIES TO
WHICH THE P. RESENT SYSTEMS GIVE RISE. WESTERN AUSTRALIA AND
N~ EW SOUTH WALES HAVE INDICATED THEY WOULD CO-OPERATE WITH THE
COMMITTEE, WHILE THE Q~ UEENSLAND PREMIER SAID, AFTER THE OUEENSLAND
INDUSTRIAL REGISTRAR HAD INFORMED M4R JUSTICE SWEENEY OF THE
STATE GOVERNMENT' S POLICY, THAT THE QUESTION OF HOW HIS GOVERNMENT
IVOULD BE ABLE TO FURTHER ASSIST THE COMMITTEE WOULD BE KEPT
UNDER REVIEW. HIS REPORT IS EXPECTED ABOUT THE END OF THIS
MONTI]. ITURN NOW TO THE SECOND GOAL WHICH THE GOVERNMENT
MUST PURSUE TO HELP MAINTAIN HARMONIOUS INDUSTRIAL RELATIONS:
THE CREATION OF AN ECONOMIC AND SOCIAL ENVIRONMENT IN WHICH
THE FINANCIAL CAUSES OF MANY DISPUTES ARE MINJIMISED. IT
SHOULD BE CLEAR TO ALL BY NOWI THAT MUCH OF THE GOVERNMENT'S
ACTIVITY IS DEDICATED TO THIS END. OUR POLICIES AND PROGRAMS
HAVE BEEN DIRECTED TOWARDS. REDUCING AND EV/ ENTUALLY ERADICATING
INEQUALITIES IN OUR SOCIETY WHILE AT THE SAME TIME MAINTAINING
A HEALTHY PATTERN OF EFFICIENT ECONOMIC GROWTH. AT THIS POINT
I WOULD LIKE PARTICULARLY TO EMPHASISE OUR EFFORTS TO CREATE A
MORE EQUAL SOCIETY.. THE ACHIEVEMENT OF EQUALITY MEANS MUCH MORE
THAN SIMPLY PROVIDING HIGHER WAGES AND SALARIES. IT MEANS
PROVIDING A RANGE OF COMMUNITY SERVICES TO SATISFY THE
REASONABLE NEEDS OF ALL CITIZENS A1ND TO CREATE REASONABLE
OPPORTUNITIES FOR ALL CITIZENS. -THIS IN TURN MEANS THE
CREATION OF THE BEST COMMUNITY SERVICES THAT THE COUNTRY
CAN AFFORD. IT IS NO COINCIDENCE THAT IN OUR FIRST iSMONTHS
IN OFFICE WE HAVE CONCENTRATED SO MUCH OF OUR EFFORTS IN THE
FIELDS OF EDUCATION, HEALTH AND URBAN AND REGIONAL DFVELOPMENT.
AN INCREASED WAGE ALONE IS NOT GOING TO ENSURE THAT A WORKER'S
CHILDREN WILL RECEIVE A PROPER EDUCATION. AN INCREASED WAGE
WILL NOT GUARANTEE THAT WORKER'S FAMILY ACCESS TO HIGH OUALITY
MEDICAL AND HOSPITAL CARE AT A REASONABLE COST. AN INCREASED
WAGE WILL NOT GRANT HIM ADEOUATE TRANSPORT, ROADS, CHILD CARE
FAC>' flIES, RECREATION OUTLETS AND THE LIKE. IT WILL NOT
EVEN NECESSARILY GUARANTEE HIM PROPER HOUSING, PARTICULARLY
I t~ TVES IN A CITY WITH RAMPANT INFLATION IN LAND PRICES.
THE PROVISION OF ADEQ7UATE SERVICES AND OPPORTUNITIES
OF THIS KINE ;' 7UST DEPAND ONIBROAD COMMUNITY ACTION; AND THAT
MEANS GOVERNMENTIACTION. THAT IS WHY SO MUCH OF OUR PUBLIC
SPENDING HAS BEEN DIRECTED TOWARDS BUILDING NEW SCHOOLS AND
TRAINING NEW TEACHERS; TOWARDS ESTABLISHING COMMUNITY HEALTH
CENTRES AND HOSPITALS IN CLOSE PROXIMITY TO WHERE PEOPLE
( NOT JUST DOCTORS) LIVE; TOWARDS THE PROVISION OF BASIC
FACILITIES IN THE MASS OF SUBURBS WHICH HAVE PEEN NEGLECTED
SINCE THEIR EMERGENCE IN THE POST-WAR YEARS; TOWARDS THE
CREATION OF NEW CITIES; AND TOWARDS THE BUILDING OF MORE
HOUSING FOR LOW-INCOME EARNERS.
FORTUNATELY, THE ELECTORATE HAS JUST GIVEN THE
GOVERNMENT A FURTHER THREE YEARS IN WHICH TO PURSUE THESE
GOALS. THEIR FULL ACHIEVEMENT WILL, OF COURSE, TAKE LONGER
THAN THAT. JBUT WHEN THEY ARE ACHIEVED, WAGE AND SALARY
EARNERS WILL NO LONGER BE QUITE AS DEPENDENT ON THEIR PAY
PACKETS FOR THE SATISFACTION OF THESE NEEDS. THIS WILL, IF
YOU LIKE, MOVE ALL OF US AT LEAST SOME DISTANCE AWAY FROM
WHAT MIGHT BE TERMED AN INCOMES MENTALITY. EQUALITY OF
OPPORTUNITIES AND SERVICES MUST IN ITSELF REDUCE SOME OF THE
CAUSES OF CONFLICT IN OUR SOCIETY AND IN INDUSTRIAL RELATIONS.
TO ACHIEVE THESE GOALS AND INDEED TO ACHIEVE ANY
KIND OF RE-ALLOCATION OF RESOURCES WE MUST, OF COURSE,
MAINTAIN A HEALTHY ECONOMY. W'OULD EMPHASISE MY USE OF THE
WORD MAINTAIN IN MY LAST SENTENCE.. CONTRARY TO WHAT SOME
PROPHETS OF DOOM ARE NOW SAYING, ' IUSTRALIA HAS AN ESSENTIALLY
HEALTHY ECONOMY. D) ESPITE WHAT OUR ECONOMIC JEREMIAHS MIGHT
SAY, THE LAST 18 MONTHS HAVE BEEN MARKED BY EXCEPTIONALLY
RAPID GROWTH. LET ME GIVE A FEW EXAMPLES TO DEMONSTRATE THIS.
GROSS NATIONAL EXPENDITURE ROSE IN REAL TERMS BY 12.4 PERCENT
IN THE YEAR TO THE MIARCH QUARTER OF 19/ 4, COMPARED WITH
IN THE PREVIOUS YEAR AND PERCENT IN TH E YEAR BEFORE THAT.
GROSS NON-FARM PRODUCTION INCREASED BY PERCENT COMPARED WITH
4.2 PERCENT AND 3.3 PERCENT IN THE PREVIOUS TWO. YEARS. CIVILIAN
EMPLOYMENT INCREASED BY MORE THAN 200,000 OR 4., 5 PERCENT, THE
LARGEST PERCENTAGE INCREASE IN ANY COMPARABLE PERIOD SINCE 11I
ALTHOUGH THE SHARE MARKET . MIGHT NOT REFLECT IT, COMPANY INCOME
HAS INCREASED BY 18. q PERCENT.
SOME PROBLEMS DO EXIST IN CERTAIN INDUSTRIES. RUT I T
WOULD BE WRONG TO SEE ALL OF THOSE DIFFICULTIES AS INDICATING
AN OVERALL ECONOMIC PROBLEM OR, TO BE DEFENSIVE FOR A MOMENT,
TO BLAME THE GOVERNMENT FOR THEM. IT IS SURELY AT LEAST
QUESTIONABLE FOR A CAR MANUFACTURER TO BLAME THE 93OVERNMENT FOR
ITS FAILURE TO CAPTURE A LARGE ENOUGH SHARE OF THE MARKET FOR
ITS PRODUCTS WHEN THE LATEST FIGURES FOR MOTOR VEHICLE
REGISTRATIONS SHOWS THEY ARE RUNNING AT A HIGH LEVEL. I I/ i q
THE FACT REMAINS, HOWEVER, THAT AUSTRALIA, IN COMMON
WITH OTHER COUNTRIES, IS UNDERGOING A PERIOD OF EXCESSIVE
INFLATION,' IN CASE ANYONE SHOULD THINK THAT THIS IS A NEW
DISCOVERY FOR US, SOME OF YOU MAY REMEMBER'MY ADDRESS TO THE
INDUSTRIAL RELATIONS SOCIETY IN ( MAY LAST YEAR" " IT HAS
ALREADY BECOME CLEAR," I SAID THEN, " THAT THE THREAT OF
INFLATION WILL BE THE MOST SERIOUS ECONOMIC PROBLEM FACING
OVER NMENT." AT ANOTHER POINT IN MY ADDRESS I SAID:
" LET THERE BE NO DOUBT OF HOW SERIOUSLY my GOVERNMENT REGARDS
THIS PROBLEM OR THE STRENGTH OF OUR DETERMINATION TO TACKLE IT."
' E HAVE EXHIBITED SUCH A DETERMINATION EVER SINCE WE CAME INTO
OFFICE. As SOON AS WE-WERE ELECTED IN 1972, WE REVALUED THE
DOLLAR TO CUT THE PRICE OF IMPORTS AND WE ESTABLISHED THE
DEPOSIT REQUIREMENT TO REDUCE THE INFLOW OF FOREIGN MONEYS.
WE EFFECTIVELY REVALUED THE DOLLAR TWICE AFTER THAT. V! E HAVE
TIGHTENED MONETARY POLICY TO REMOVE THE EXCESSIVE AMOUNT OF
MONEY IN THE ECONOMY, IN JULY WE CUT ALL TARIFFS By 25/ 1 IN
ORDER TO DECREASE THE PRICE OF IMPORTS AND TO RESTRAIN LOCAL
PRICE RISES BY INCREASING COMPETITION. W" E HAVE ESTABLISHED THE
PRICES JUSTIFICATION TRIBUNAL WHICH HAS UNDOUBTEDLY PLAYED A
SIGNIFICANT ROLE IN RESTRAINING PRICE INCREA-0ES. ',-;. ITEVER OUR
CRITICS MIGHT SAY,. WE EVEN RESTRAINED THE GROWTH IN GOVERNMENT
EXPENDITURE, / 11
DESPITE THESE MEASURES, WE NEED TO TAKE FURTHER
ACTION TO BEAT INFLATION. THE VERY BUOYANCY WHICH HAS BEEN
A FEATURE OF OUR ECONOMIC GROWTH HAS HAD ITS DISADVANTAGES;
DEMA1ND HAS CONTINUED TO BE EXCESSIVE. THAT IS WHY, AT THE
PREMIERS CONFERENCE EARLIER THIS MONTH, I ANNOUNCED FURTHER
MEASURES TO CURB INFLATION. THE AUSTRALIAN GOVERNMENT
IS EXAMINING ITS OWN EXPENDITURE PROGRAMS SO THAT IT CAN PLAY
ITS PART, SAID THEN THAT WE WOULD LIMIT THE BUDGET ALLOCATION
FOR THE POST OFFICE IN 107LI-1075 TO NOT MORE THAN THE ACTUAL
AMOUNT ALLOCATED IN 1973-1974; WE WOULD PUT RESTRAINTS ON
CAPITAL WOtR-KS AND OTHER CAPITAL EXPENDITURE BY THE GOVERNMENT;
WE WOULD ABOLISH THE PETROLEUM PRODUCTS PRICES SUBSIDY SCHEME;
WE WOULD LIMIT THE GROWTH OF THE AUSTRALIAN PUBLIC SERVICE;
WE WOULD REDUCE THE AMOUNT RECOMMEN DEDFOR SPENDING ON ROADS
BY THE BUREAU OF ROADS. AT THE SAME TIME THE GOVERNMENT FOUND
IT NECESSARY TO HOLD DOWN THE INCREASE IN FINANCIAL ASSISTANCE
TO BE PROVIDED TO THE STATES IN 1074-1975, IN DOING THIS, I
CALLED ON THE STATES TO PLAY THEIR PART IN BEATING INFLATION.
THE GOVERNMENT'S MEASURES HAVE INEVITABLY AROUSED SOME
HOSTILITY. IT TAS BEING SAID THAT THE AUSTRALIAN GOVERNMENT IS
FORCING THE STATES TO RAISE TAXES AND CHARGES. IT IS ONLY FAIR
TO POINT OUT THAT IT COULD BE JUST AS EASILY SAID THAT THE STATES
ARE TRYING TO FORCE THE AUSTRALIAN GOVERNMENT T'O RAISE IT'S TAXES
AND CHARGES. FOR IF MORE MONEY IS NEEDED FOR STATE SERVICES
IT CAN BE MADE AVAILABLE IN ONE OF ONLY TWO WAYS: EITHER BY THE
COMMONWEALTH RAISING MORE MONEY A1ND PASSING IT ON TO THE STATES
OR BY THE STATES THEMSELVES RAISING EXTRA MONEY. IT IS ALL VERY
WELL FOR THE STATES TO EXPECT THE COMMONWEALTH TO CARRY THE FULL
OPPROBRIUM FOR UNPOPULAR MEASURES AIMED AT RAISING EXTRA MONEY.
IDO NOT THINK IT IS UNREASONABLE OF THE AUSTRALIAN GOVERNMENT
TO EXPECT THE STATES TO SHARE IN SUCH PROBLEM. THERE IS ANOTHER
POINT TO BE MADE ABOUT THE ACCUSATION THAT THE* AUSTRALIAN
GOVERNMENT IS FORCING THE STATES TO RAISE TAXES AND CHARGES.
OUR MAIN EMPHASIS HERE IS, IN FACT, ON ECONOMIC RATIONALITYPUBLIC
ENTERPRISES -BOTH COMMON4WEALTH AND STATE MUST GO CLOSER
TO PAYING THEIR OWN WAY; THEIR SERVICES MUST BECOME MORE CHARGES
G4rU4S ERS AND LESS CHARGES ON TAXPAYERS. AT THE SAME TIME, THEY
MUST BECOME MORE EFFICIENT. ADMITTEDLY ALL GOVERNMENTS IN
AUSTRALIA FACE THE PROBLEM THAT IT IS LEFT TO THEM TO CONDUCT
THE LEAST PROFITABLE ENTERPRISES. BUT THIS SHOULD BE wo EXCUSE
FOR AVOIDING RATIONAL CHARGES AND EFFICIENT OPERATION. THE
AUSTRALIAN GOVERNMENT IS ACCEPTING ITS SHARE OF THE RESPONSIBILITY
IN THIS DIRECTION. IT ASKS NO MORE THAN4 THAT OF THE STATES.
AT LEAST SOME OF THE CRITICISM THAT HAS BEEN-DIRECTED
AGAINST US HAS COME FROM THE VERY PEOPLE WHO HAVE URGED ACTION
UPON US AND EVEN AT TIMES OVER THE VERY MEASURES THEY HAVE
SUGGESTED. THiE PRICE OF LAND AND HOUSING IS A GOOD EXAMPLE$
ONE OF THE MOST DAMAGING ELEMENTS IN THE INFLATIONARY BOOM
IN THE PAST YEAR OR SO HAS BEEN THE SOARING PRICE OF HOUSES.
NIOW, DUE TO THE CUTTING DOWN OF-THE PREVIOUSLY EXCESSIVE FLOW
OF FINANCE INTO BUILDING., HOUSE PRICES APPEAR TO BE TENDING TO
FLATTEN OUT. PRICES OF COSTLIER HOUSES HAVE TENDED TO DROP.
WHILE NO GOVERNMENT LIKES TO SEE INTEREST-RATES FOR HOME-BUYING
INCREASE UNDULY, WE MUST PURSUE THIS SITUATION FOR A WHILE
IF WE ARE TO HAVE ANY CHANCE OF DELIVERING A SOLID BLOW TO
INFLATION IN THIS AREA.-W~ E MUST DESTROY THE SELF-FULFILLING
PROPHECY OF MANY PEOPLE THAT THE PRICE OF LAND WILL ALWAYS RISE
MORE RAPIDLY THAN INFLATION. WE MUST ALSO REDUCE THE EXCESS DEMAND
IN THE PRIVATE SECTOR OF THE BUILDING INDUSTRY IF WE ARE TO
NONE OF THE DECISIONS THAT WE HAVE HAD TO MAKE HAVE
BEEN EASY. WE WILL BE EXTREMELY VIGILANT. TO MAKE SURE THAT, IF
ANY. UNPREDICTABLE OR EXTREME RESULTS FLOW FROM OUR MEASURES, WE
CAN TAKE APPROPRIATE ACTION. I CERTAINLY GIVE THAT PLEDGE IN
THE AREA OF EMPLOYMENT. TESPITE THE MORE SENSATIONAL HEADLINES,
DOES ANYONE REALLY BELIEVE THAT THE AUSTRALIAN LABOR PARTY,
WHICH OWES ITS EXISTENCE AND SURVIVAL TO WAGE AND SALARY EARNERS,
WOULD PURSUE POLICIES DESIGNED TO PUT THOSE PEOPLE OUT OF WORK?
VE CAME INTO GOVERNMENT, PLEDGED TO RESTORE FULL EMPLOYMENT.
WE ACHIEVED THAT OBJECTIVE VERY QUICKLY. WE WILL CONTINUE TO
PURSUE IT. THE KIND OF ADJUSTMENT WHICH WE ARE TRYING TO MAKE
TO THE USTRALIAN ECONOMY IS A COMPLEX AND DIFFICULT EXERCISE.
WE HAVE ALREADY SHOWN A FLEXIBILITY OF APPROACH TO MEET
CHANGED NEEDS OR OVERCOME PROBLEMS THAT MIGHT ARISE, OUR
RELAXATION OF THE OVERSEAS CAPITAL DEPOSIT REQUIREMENTS AND
OF STATUTORY RESERVE DEPOSITS ARE EXAMPLES OF THIS FLEXIBILITY,
THERE CAN BE NO DENYING, HOWEVER, THAT DEMAND INFLATION HAS
BEEN A PROBLEM FOR SOME TIME AND ACTION TO COUNTER HAS BEEN
NECESSARY. WHAT WE MUST DO NOW IS AVOID ANOTHER PROBLEM, COST-PUSH
INFLATION. TO DO THIS, WE WILL NEED THE CO-OPERATION OF THE
WHOLE COMMUNITY. INDUSTRY MUST MODERATE ITS PRICE INCREASES,
As. I HAVE MENTIONED, THE PRICES JUSTIFICATION TRIBUNAL HAS HELPED
IN THIS AREA, IF THE SENATE IS WILLING, WE WILL BAN COLLUSIVE
PRICE FIXING BY COMPANIES, EMPLOYEES MUST ALSO PLAY THEIR PART.
WE CANNOT CONTINUE TO HAVE ANNUAL WAGE AND SALARY INCREASES OF
THE ORDER OF 20%.
-14-
EMPLOYEES SEEKING THESE INCREASES ARE IN DANGER OF BECOMING
LIKE SQUIRRELS IN A CAGED WHEEL: NO MATTER HOW FAST THEY RUN,
THE WHEEL ( INFLATION) ONLY GOES FASTER THEY STILL DO NOT
ADVANCE. IT IS FOR THIS REASON THAT THE GOVERNMENT IS
INTERESTED IN THE IDEA OF SOME FORM OF REGULAR COST OF LIVING
ADJUSTMENTS TO WAGES AND SALARIES, OR WAGE INDEXATION, TO USE
THE CURRENTLY POPULAR TERMa EMPLOYEES WOULD NO LONGER FEEL
COMPELLED TO SEEK HUGE INCREASES AS A HEDGE AGAINST INFLATION
IF THEY WERE OFFERED SOME REAL INCOME PROTECTION. ' 4E THEREFORE
WELCOME THE DECISION OF THE CONCILIATION AND ARBITRATION
COMMISSION IN ITS 19/ LI ' NATIONAL WAGE CASE JUDGMENT TO CALL A
CONFERENCE "/ TO-SEE WHETHER CONSENSUS CAN BE REACHED ON THE TWO
COUNTERACTING ISSUES WAGE FIXATION METHODS AND WAGE
I NDEXAT ION" THERE IS NO DOUBT THAT A REVIEW OF THESE ISSUES IS
TIMELY. THE ' ATIONAL WAGE INCREASE OF ABOUT WEEK
BECOMES QUITE MEANINGLESS IN PROTECTING THE INTERESTS OF THE
LOWER PAID WORKERS WHILE INDUSTRY AWARDS ARE BEING INCREASED
BY AGREEMENT IN INDEPENDENT NEGOTIATIONS AT LEVELS RANGING
FROM $ 15 TO $ 25 A WEEK. THE ULTIMATE RESULT OF THIS PROCESS
WILL BE THAT THE WAGES OF WORKERS IN INDUSTRIES COVERED BY
STRONG UNIONS WILL INCREASE DISPROPORTIONATELY TO THOSE OF
WORKERS WHO RELY ENTIRELY ON THE COMMISSION FOR WAGE MOVEMENTS.
THE IDEA OF WIDENING THE WAGE NEGOTIATING PROCESS WHICH TAKES
PLACE IN SUCH INDUSTRIES AS THE METAL TRADES ON AN ANNUAL BASIS
TO INCLUDE ALL SECTORS OF INDUSTRY IS, IN THE GOVERNMENT'S
VIEW, A GOOD ONE IF IT CAN BE ACHIEVED.