PRIME MINISTER'S PRESS CONFERENCE
CANBERRA, 10 JUNE, 1975
Mr. Whitlan: Ladies and gentlemen, when I announced the
ministerial changes last Thursday night, I didn't include details
of the Ministers assisting. As you will notice, there are now
several departments which have been given additional responsibilities,
so there is a need to have additional Assistant Ministers.
Senator Bishop, the Postmaster-General, will also be Minister
assisting the Minister for Defence. You remember that he did
act as Assistant Minister earlier, before Mr. Morrison became
Assistant Minister.
Senator James McClelland, the Minister for Labor and Immigration,
will also be the Minister assisting me in-matters relating to the
Public Service.
Mr. Morrison, the Minister for Defence, will also be Minister
assisting the Minister for Foreign Affairs in matters relating
to the islands of the Pacific.
Mr. Stewart, the Minister for Tourism and Recreation, who has
been Minister assisting the Treasurer, will now also be Minister
assisting the Minister for Social Security and Minister for
Repatriation and Compensation.
Mr. Riordan, the Minister for Housing and Construction, will
also be Minister assisting the Minister for Urban and Regional
Development. The Government has decided to establish a National College of
Navigation and Communication to provide education and training
for officers in the Australian maritime industry and to site it
at Launceston. The decision results from the report on ' Training
Requirements for Sea-going Personnel' by Mr. Malcolm Summers, who
is the Royal Commissioner inquiring into various acqDects of the
maritime industry. His report was tabled on the 11 JulY last,
and has since betn discussed with all the States.
Launceston was chosen because the College needs to have practical
training fadilities at a seamanship centre, including a jetty,
boat repair sheds, boats, liferafts and periodic access to a
small training ship. It needs to be situated close to sheltered
water with good access to the sea.
Those were the requirements set out by the Royal Commissioner,
Mr. Summers, and Launceston has all these requirements and
its proximity to Bass Strait is a decisive consideration.
As you know, the RAAF has always centred its navigation training
in Bass Strait.
The! Government accepts the recommendation of the Royal
Commissioner, that the College should be based on a requirement
of 300 student places, with provision for future growth. The
Government accepts the recommendations of the Commissioner that
the College should be situated close to a tertiary institution
which may need to be developed further than the existing advanced
education facilities in Launceston. Library, hall of residence
and some other facilities could, by arrangement with the Tasmanian
Government, be available for joint use with Tasmanian tertiary
students.
The Committee which has been investigating post secondary education
in Northern Tasmania will be asked to recommend the manner of
this association between the National College of Navigation and
Communication and the new tertiary educational facilities which
are being developed in Launceston.
The College will educate deck officers, engineer officers, radio
officers and it will provide for higher studies including nautical
science degree qualifications for which at present Australian
seafarers are forced to go overseas.
The College will be comprehensive, with predominantly tertiary
level studies with associated courses at a level appropriate for
seamen and fishermen and including practical training in safety,
fire fighting and life saving.
Prime Minister: Are there any questions?
Question: How do you equate your Brisbane statement that
ordinary people are more prosperous than they've ever been with
tLhe highest unemployment since the depression and the present
high inflation rate? What immediate steps do you expect the new
Treasurer to take to rectify this anomaly?
Mr. Whitlam: The steps which have been made to alleviate
unemployment are well-known to you all and they are working.
The fact is, as I stated in my weekly broadcast in Queensland
on Sunday, the standard of living for most people has certainly
risen. That is the average income, taking into account taxation,
is higher than it was in real terms, and in many cases, such as
those who are on pensions, it is conspicuously higher. I think
3.
to give one instance there, the cost of living in our two and
a half years, has risen by about 36%. The age pension for single
paensioners has risen by 80%, for pensioner couples by 74% and
one can go through all those fields where incomes depend on
payments by the Australian Government to demonstrate that in
ever-y case the incomes, in real terms, are conspicuously higher
than they were when we camne into office two and a half years ago.
As regards incomes fixed in the general sphere by Arbitration
proceedings and so on, after taxation incomes are worth more
than they were when we camne in, significantly more.
Question: When do you expect to have the report of the
inquiry into the allegations by Dr. Cairns?
Mr. Whitlam: I wrote on Friday afternoon to Dr. Cairns, to
Mr. Hayden, since some of Dr. Cairns' former office staff may
now be in Mr. Hayden's off ice, and to Sir Frederick Wheeler, the
Secretary of the Treasury, Mr. Harders the Secretary of the
Attorney-General's Department and Mr. Menadue the Secretary of
my own Department in these terms:
" rYou will be aware of the statement made in the House of
Representatives yesterday by Dr. Cairns concerning the
handling of papers in his office in the Treasury and in
the Attorney-General's Department dealing with loan raisings.
Naturally I take a serious view of what Dr. Cairns has said
and I, therefore, require from you a full report insofar as
your Department is concerned, including signed statements
from any individual members of the staff who have dealt with
this matter in any material way. The report and accompanying
statements should be produced to me early next week."
Those letters were delivered to Sir Frederick Wheeler and
Mr. Menadue at 4.30 on Friday afternoon and delivered, I believe,
to the others at the same time, within a few minutes thereafter.
I've had no written statements or reports yet. If there is any
disparity in the statement, any discrepancies in the reports,
the statements I receive, then I will have an inquiry of a quasi
judicial nature instituted.
Question: Last week at his press conference, Dr. Cairns
said that he was removed as Treasurer because, in your view,
he had acted unwisely in his dealings with Mr. George Harris.
Was that the only reason he was removed?
Mr. rdhitlam: The sole reason.
Question: Would you say what prompted you to remove
Mr. Cayiewrn. as Minister for Labor and Immigration?
Mr. Whitlam: The general changes were due to my belief of
where men can best serve; which Ministers can best discharge
perticular portfolios at the present time or from now on.
Question: Can you tell us then what special qualifications
Mr. Cameron has as minister for Science?
Mr. Whitlam: The Department is Minister for Science and
Consumer Affairs. The Department was changed last Friday to
emphasise that consumer affairs are primarily in that Department.
Mr. Cameron's qualities to investigate and pursue issues are well
known to you and such qualities are conspicuously suitable for
consumer affairs.
Question: If the sole reason for Dr. Cairns~ dismissal
as Treasurer was the question of the letters on overseas loan
raising and since you have already asked for an inquiry to be
instituted, would it not have been fairer to wait for the result
of the inquiry before dismissing Dr. Cairns?
Mr. Whitlam: I believe not. Dr. Cairns doesn't dispute, he
never did disputeothe letters which he had given Mr. George Harris
as he has already reported to the Parliament. I believe that it
was unwise for him to give such letters. There's no dispute
concerning the passage of letters between Dr. Cairns and Mr. Harris.
There is the question of how the letters came to be transmitted
by Treasury officials to the Attorney-General's Department. It
is obviously a matter of interest that the Head of a Department,
the Departmental Head, should seek a legal opinion about his
Minister without telling the Minister, without telling the Prime
Minister. Quest ion: Your judgement there, is that based on the
original letters or on the version that you received via the
Attorney-General' s Department?
Mr. Whitlam: I didn't receive a version directly from the
Attorney-General's Department. I received the Attorney-General's
Department's opinion from the Secretary of the Treasury.
Question: What is the distinction between the loan
raisings of Mr. Connor and Dr. Cairns? Did Mr. Connor provide
full details of all his intermediaries to Cabinet and why is it
that he has escaped scot-free in this matter?
Mr. Whitlam: it's well-known that the transaction iLn which
Mr. Connor had authority, was known and discussed by all relevant
Departmnts; his own Department, Treasury, Attorney-General's
Department and myself.
Question: Why did you decide to incorporate the Social
Welfare Commission into the Department of Social Security?
Mr. Whitlam: What I've done is given the same man,
Senator Wheeldon, both portfolios. The Departments are separate,
but one Minister holds both of them. There has been concern
about the proliferation or duplication of the delivery of
welfare services. Senator Wheeldon, the Minister for both
Social Security and Repatriation and Compensation, has shown
his outstanding effectiveness as Minister for Repatriation and
Compensation and I thought he would be an ideal man to see that
research and policy and equipment, new computers and that sort
of thing, were all properly coordinated between these two
principal welfare departments.
Question: The question I think was about the Social
Welfare Commission which has been abolished or is to be abolished.
Mr. Whitlam: Yes. Legislation will be introduced to abolish
the Social Welfare Commission. I announced that last Thursday
night, about 10 o'clock last Thursday night. I did state then,
that the Social Welfare Commission would now become a bureau
within the Department of Social Security. It may become a bureau
within the Department of Repatriation and Compensation. As you
know, the National Advisory Council for the Handicapped, under
Mr. Justice Meares, will be responsible to the Minister for
Repatriation and Compensation and it may be that the Social
Welfare Commission will become a bureau in that Department. But
in all events in either case, it will be under the same Minister,
Senator John Wheeldon.
Question: Why have you decided to make the Social Welfare
Commission a bureau, to take away its former status?
Mr. Whitlam: So that the policy functions which it has been
discharging, will, in fact, be fed in directly to the Department
most concerned.
Question: * Are you satisfied that no legal agency existed
between Dr. Cairns and Mr. Harris on the basis of his letters?
If so, can you tell us why you think his action was unwise
Was it because he failed to consult properly?
Mr. Whitlam.: I don't believe it was a responsible thing
for a Treasurer to give that sort of letter. I'm not going to
give a legal opinion on it. You have a legal opinion from the
Secretary of the Attorney-General's Department.
Question: Have you had a legal opinion on the letter
Mr. Connor gave to Mr. Khemlani. How does it differ from the
letter Dr. Cairns gave to Mr. Harris? And why is Dr. Cairns'
action less responsible than that of Mr. Connor?
Mr. Whitlam: I've already stated that what Mr. Connor did
was in consultation with the Departments I've named. There
have been many statements by the Opposition and by the media
in recent weeks regarding the borrowing overseas of petrodollars.
I want it clearly understood that the Government has not negotiated
any such borrowing. I want it clearly understood that no-one
has authority to make any such borrowing on the Government's
behalf. In answer to a question in the House of Representatives
on the 21st May, I informed the House that the authority given
to the Minister for Minerals and Energy in connection with a
proposed $ 2 billion loan, had been revoked. The authority has
not been renewed. The week before last, I became aware that the
former Treasurer had given certain letters relating to the possible
borrowing of Itnies overseas. This was done without my knowledge
and without consultation with the Minister's Department. Henceforth,
no person has authority to do anything in relation to borrowings
by the Australian Government unless it is done with Mr. Hayden's
authority. That includes the AIDC which, as you know, has statutory
authority to borrow overseas. It is, ministerially, the responsibility
of Senator James McClelland.
Question What other intermediaries did Mr. Connor use
besides Mr. Khemlani if any, and why is there this reluctance
to make Mr. Connor's letters public?.
Mr. Whitlam: Mr. Khemlani was not an intermediary. Mr. Connor
had authority under the Executive Council minute, to borrow as
Minister for Minerals and Energy . That authority has been revoked.
Question: Dr. Cairns said he had authority under ExCo.
as well.
Mr. Whitlam: I don't believe he did say that.
Question: If you believe that Dr. Cairns
Mr. Whitlam: You're referring to the Saudi Arabian Monetary
Authority and AIDC. Well those are authorities given to the
Treasurer under Executive Council minute.
Question: If you believe that Dr. Cairns has acted
unwisely, what do . you feel about the role played by Sir Frederick
Wheeler in not telling anybody that he'd sought this legal advice?
24r. Whitlam: I've already made the only commeat I'm going
to make on that subject at this stage.
Question: Would you agree that a Permanent Head's first
obligation is loyalty to his Minister?
Mr. Whitlam: There are several duties which a Permanent Head
has, several duties. I believe that if there is a difference of
opinion between a Permanent Head and his Minister, then the
Permanent Head, according to custom, according to precedent,
according to right practice in my view, should bring the matter
to the attention of the Prime Minister.
Question: Can you explain why the Federal Government has
brought the North West Shelf Gas project to a standstill for
more than twelve months?
Mr. Whitlam: Because the States have challenged the Federal
legislation in the High Court. I say the Federal Government's
legislation. The legislation which is being challenged by
Western Australia and by all States in the High Court, certainly
was introduced by my Government and it was passed by Parliament
under my Government. But it is the same legislation as was
introduced in April, 1970, under the Gorton Government, in the
name of Mr. McMahon, who was then Foreign Minister.
Question: The company just want details of the optake of
gas, the price and when it will be available so they could continue
to plan even while this
Mr. Whitlam: You can put their case if you wish. You can
be their advocate. I'm not going to be an advocate. What I
want to do is to assert the Australian Government's responsibility
in this matter. When I was in Opposition, I made it quite plain
that the opposition would support the Gorton Government's legislation.
When Mr. McMahon became Prime Minister, I still made it plain that
we would support that legislation. It was still on the noticepaper
throughout the . term of office of the McMahon Government.. After
Mr. McMahon became Prime Minister, it was on the noticepaper,
under him, in the name of his Foreign Minister, Mr. Bowen. When
we came in, we brought the legislation in.. At last, on the second
attempt, we secured its passage. Now we've done all we can. We
did so in Opposition, when it was introduced in April, 1970. We
at last got it through in our first Parliament. We've done all
we can. I sympathise with the position of the company for
which you are speaking. The fact is, however, that the Australian
Government has done all it can. It introduced the law, it is
justifying the law before the High Court which has reserved its
decision.
Question: Have you asked Mr. Connor if he has sent
any further letters to other people involving overseas borrowings?
Mr. Whitlan: Yes.
Question: Has he sent any?
Mr. Whitlai: No.
Question: The letter to Mr.-Khemlani is the only one
is it?
Mr. Whitlam: There is no letter. There was a cable, there
have been cables. There have been no communications to anybody
else. As I mentioned, the whole of that transaction is ended.
I thought I'd made that plain.
Question: Next week the annual meeting of the Premiers
is being held in Canberra. I understand that officers, federally
and state, have been having discussions. Is there any sign of
a better accord being reached or are we to expect the usual
wrangle at the end of next week? And do you propose that the
new formula which is to be worked out should run for the usual
five years which has been the practice, or for a lesser period?
Mr. Whitlam: There have been discussions between me and
my colleagues and by us with our officials on this matter for
some weeks past. The Premiers sent us proposals on the
of last month. I received a telephone call from Mr. Lewis on
their behalf last week and I told him what our program was.
The principal Ministers concerned discussed this yesterday. I
am sending a cable to Mr. Lewis and maybe the other Premiers too
today. our officials are meeting theirs on Thursday. The
Cabinet will be discussing the whole matter on Monday, and I
expect then to give a fuller reply to the Premiers on Tuesday.
We meet on Thursday and maybe Friday of next week. You'll see
from this timetable that there has been much more preliminary
discussion than there has been before previous Premier's Conferences.
on previous occasions, the Premiers had not made their officials
available and had not themselves forwarded any commuunications
to the Federal Government, certainly not to the extent that has
happened on thi-s occasion. on previous occasions, the Federal
response was made on the day of the meeting itself. As you see,
there will be a preliminary response by me today. It will be
pursued by officials on Thursday and there will be a definitive
response next Tuesday. This means that the Premiers will be able
to confer further on Tuesday or Wednesday and on Thursday there
will still be some matters, I expect, for us to discuss directly.
9.
Question: Have you asked Sir Frederick Wheeler to take
the governorship of the Reserve Bank when it becomes vacant, Sir?
Mr. Whitlan: We made an offer a couple of months ago.
Question: Beyond paying his fare, will your Government
give Mr. Phillip Lynch any assistance in his offshore operations
overseas? Mr. Whitlam: He's going into the sleuthing business over
there apparently. Well I frankly haven't considered this matter
and it hasn't been put to me up till now, so therefore I haven't
given very much consideration to it. As I think I made pretty
plain on ' Monday Conference' last week, Mr. Lynch may get some
scraps of informat~ ion. They are either misleading to him or
he has embroidered them in a misleading fashion. The only things
that Mr. Lynch has ever said precisely on this matter, have been
quite wrong.
Question: the offer? Did
Reserve Bank?
Mr. Whitlam:
Question: Mr. Whitlam:
Question: Mr. Whitlam: What was Sir Frederick Wheeler's reaction to
he accept the offer of the governorship of the
Not at that time.
Has he accepted it since?
It's only been made once.
Do you plan to offer it again?
I've got no answer for that.
Question: As the Government claims a strong record on
civil liberties questions, have you got any comment to make on
the Opposition's. endorsement of a march in Melbourne recently,
in which the leader of that march said that she'd be naming the
private political beliefs of members of the Victorian Education
Department? Mr. Whitlam: I hadn't heard of this. I read your paper
quite closely, Mr. Clark, and I didn't see it, but I haven't
seen it elsewhere. I'm not aware of the matter at all. Igm
not sure whether-this is a breach of civil liberties. I don't
suppose that there should be any particular mystery as to what
people's beliefs are if they're in a position where those beliefs
might be relevant. I think it's sufficient to say that if they
II are relevant then a person is entitled to hold them but it's
nothing unreasonable in them being disclosed. There's nothing
particularly mysterious about this. Some people in the media
have even had the gall to ask me what my beliefs were on certain
matters. I don't let the Australian media get away with such
an impertinence but I must confess I yielded once or twice to
a couple of B. B. C. people.