PM Transcripts

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PRIME MINISTER PRESS STATEMENT NO. 294
August 1974
PRICES JUSTIFICATION TRIBUNAL REPORT ON PROPOSED INCREASES
IN INTERSTATE FREIGHT RATES BY
MAYNE NICKLESS LIMITED
I have received the attached report dated 2 August
of the Prices Justification Tribunal on proposals by
Mayne Nickless Limited to increase interstate freight rates
by 18 per cent.
The Tribunal considers that an increase of only
12 per cent would be justified, operating no earlier than
August. In its submission, the company . relied principally on
increased costs arising from the Consent Award of $ 25.40
increase per week in the wages of drivers operative from
the beginning of the first pay period commencing on or
after 8 July. After close examination and reference to recent
contested awards, the Tribunal was not satisfied that increases
in wages beyond $ 16.00 per week could be regarded as a
justifiable reason for raising prices. I note, however,
that the Tribunal accepted cost increases resulting from the
wage increases awarded in the National Wage Case.
As foreshadowed by the Treasurer in his statement
in the House of Representatives on inflation on 23 July,
the Tribunal has been invited by the Government to scrutinise
with care price claims that are based on wage costs in excess
of awards. The Government is pleased that the Tribunal has
acted in accord with the spirit of the Government's invitation.
Those making " sweetheart" agreements have now been clearly
warned. I fully agree with the Tribunal that " this is a
burden which should properly be borne by those who agreed to
the increases in wages rather than by requiring the community
at large to carry the entire amount."
CANBERRA. A. C. T