JOINT PRESS STATEMENT GOVIERNMENT/ EMPLOYER TALKS
Representatives of the Government and the National Employers'
Policy Committee comprising the Associated Chambers of
Manufactures of Australia, Australian Council of Employeis'
Federations, Metal Trades Industry Associati on, Australian
Mines and Metals Association, Australian 1-oolgrowers' and
Graziers' Council and Australian Bankers' Association -met
in Canberra today.
The meeting was chaired by the Prime Minister and attended by
the Treasurer, the Minister for Primary Industry, the Minister
for Employment and Industrial Relations, and the minister for
Business and Consumer Affairs.
The employer representatives were led by Mr Max Dillon, Chairman
of the National Employers' Policy Committee. A list of those
attending is attached.
The discussions, which ranged over the economic situation,
industrial relations and economic policies were frank and
productive. It was agreed that similar discussions are desirable
from time to time.
THE ECONOMY
There was unanimous agreement that in formulating its economic
policies the Government should continue to give the control of
inflation the highest priority.
In this connection it was recognised that continuing high
inflation was the major bar to sustained economic recovery
and the reduction ' of unemployment. Particular stress was laid
on the implications of current inflation rates continuing for
Australia's international competitiveness,
Jobs, and indeed the whole future of the Australian economy,
were being progressively threatened. Under these circumstances
there is growing evidence of Australian industry movi-ng its
production and employment to other countries where costs are
lower. This is a cause of great concern to employers and the
Government. There was general agreement that these facts
needed to be more widely appreciated by the Australian community,
particularly within the wage-bargaining context.
The employer representatives stressed their wish to see early
implementation of the remaining aspects of the Mathews Committee
recommendations pertaining to company taxation.
Ministers noted the existence of technical problems in the
implementation of the Mathews Report and indicated that early
discussions between Ministers and their advisers, on the one
hand, and experts from a wide range of industry groups on the
other hand, have been arranged.
More generally,* the Government spelt out clearly the constraints
upon it in making its Budget decisions, and these were fully
recognised by the employers.
The employers pointed out the need for the Government to recognise
the high degree of dependence of certain industries on Government
orders and that in adopting policies to reduce expenditure this
should be understood. They made the point that of equal
importance to the size of the deficit was its composition.
However, they acknowledged that, in line with the over-riding
need to give priority to reducing inflation, there was a clear
need to hold the Budget deficit to below the level of that for
1975/ 76.
EM4PLOYMENT Subject to the recognised. need to reduce the deficit, employers
indicated a desire for action to stimulate economic recovery
and increase employment generally. They underlined the special
problem of unemployment among young people.
The Government agreed that there should be discussions between
the Department of Employment and Industrial Relations and
representatives of employers on this matter.
POLICY
. hi employers stressed the serious consequences of continued
Lncreases in costs. These include not only costs of labour, but
.:; vcrnnent charges, including State Government charges.
In this connection, particular attention was drawn not merely to
. approaching National Wage Case, but also to major claims
i-pending, including one for shorter hours in the power industry.
' e employers indicated that the statistics of industrial
ppages showed the extent of pressures being placed on individual
r.-' ployers and the economy, and underlined the need for firm
vernment policies in this area.
S TCES JUSTIFICATION TRIBUNAL
.' he employers indicated their view that, in the present economic
chrcumnstances, the Prices Justification Tribunal could be retained
in the interests of maintaining a climate for wage restraint.
would, however, be suggesting some modifications in its
'.. rter. It was agreed that there should be further detailed
S'. cus;. ions between employer representatives and the Minister for
and Consumer Affairs.
IING TRIBUNALS
S" -ploycrs considered that there were important wage cost
S"' t.. ences stemming from the multiplicity of industrial
They urged the Government to rationalise the
S" erts within the Commonwealth's own jurisdiction.
-L'rTICES put strongly their view that if they were to be
restraints in respect of trade practices, the unions
S" " e exempt.
SHIPBUILDING It was noted that disd ssions were proceeding on the
shipbuilding industry, an industry which is endangered by
low productivity and intense import contribution.
2 July 1976 l 0
NATIONAL LEVEL DISCUSSITONS BV",--; EBN THE GOVERN' ENT
AND REPRESEN. TATIVES OF TIl ENPLOYERS
PARLIAMENT HOUSE, CANBE-1i111 2 JULY 1976
ATTENDANCE
GOVERNMENT The Rt Hon Malcolm Fraser, MP, Prime Minister
The Hon P R Lynch, MP, Treasurer
The Hon I McC Sinclair, MP, Minister for Primary Industry
The Hon A A Street, MP, Minister for Employment and
Industrial Relations
The Hon J W Howard, MP, Minister for Business and Consumer
Affairs
The Permanent Heads and senior officers of the Departments of
Prime Minister and Cabinet, Treasury, Employment and Industrial
Relations, Business and Consumer Affairs, and Industry and
Commerce also attended.
The Chairman of the Public Service Board and the' Chairman of the
Prices Justification Tribunal were also present.
EMPLOYERS
The following representatives of the National Employers' Policy
Committee comprising the Associated Chambers of Manufactures
of Australia, the Australian Council of Employers' Federations,
the Metal Trades Industry Association, the Australian Woolgrowers'
and Graziers' Council, and the Australian Bankers' Association
were present:
Mr M Dillon
Mr A N Edwards
Mr S G W Burston, O. B. E.
Mr F F Espie
Mr T B C Bell, A. O.
Mr G Polites, M. B. E.
Mr R Fry
Mr N Mason
Mr E Cole -Chairman, National Employers' Policy
Committee Past President
of the Australian Council of
Employers' Federations
President of the Associated Chambers
of Manufactures of Australia
-National President, Metal Trades
Industry Association
Australian Woolgrowers' and Graziers'
Council
-Immediate Past President, Australian
Mines and Metals Association; Deputy
Chairman, Conzinc Riotinto Australia Ltd
-Chairman, Australian Bankers'
Association; Group General Manager',
The National Bank of Australasia Ltd
Secretary, Executive
Director, A. C. E. F.
National Director and Chief Executive,
M. T. I. A.
Director, Chamber of Manufactures of
New South Wales
Chief Industrial Officer, A. W. G. C.
SECRETARIAT
Messrs B J Hodgetts, G C Burke and G W McGill,
Department of Employment and Industrial Relations.
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