PM Transcripts

F76/ 165
PRIME MINISTER
FOR PRESS 12 August 1976
WAGE CASE DECISION
The Commnission's decision should add impetus to economic
recovery which is already underway.
It will particularly assist manufacturers and businessmen as
it will allow them to plan ahead and plan for expansion with
greater certainty. It will help stabilise the economic climate.
It will allow businesses to free the money for investment that
would have been used up-in wages if the full 2.5 percent
CPI increase had been-granted~ across the board.
Clearly, the Commission has largely recognised that
recovery of the Australian economy depends on continuing wage
restraint. It has understood and taken into account the government argument
that unemployment will not be controlled until both inflation
and the level of industrial disputes are reduced.
The decision will also have a further dampening affect on
the growth of inflation which will add considerably to consumer
confidence.
The Government believes that most Australians now recognise
the link between excessive wage increases and inflation.
We will continue to intervene before the Commission as strongly
as possible in the interests or our national economic objectives.
000 000