INFORMATION AID STATE A'ELATIONS DIVISION
BROADCAST: 3HA 28 Nov.
3YB 2 Dec.
4, AUSTRALIA
PRIME MINISTER
FOR PRESS 28 NOVEMBER 1976
ELECTORATE TALK
The Australian Government has made considerable and genuine
efforts-. to keep the natioh's shipbuilding industry alive.
For many months, we have shown consistently our concern for
the future of shipbuilding and in particular, our concern
for the'New South Wales owned dockyard at Newcastle.
I and many of my senior Ministers have met delegations of
shipworkers; we've had many formal and informal discussions
Swith Mr. Wran and the trade uni-on leadership; officials from
the Commcnwealth have. spent hours in discussions with their
State counterparts.
The Government has acted in good faith. We have wanted the
shipbuilding industry to continue. We know full well of. our
obligation to the men employed and their families.
But we also have an obligation to every Australian taxpayer
and all other Australian workers. We have to act in their
best interests, too.
The Government has made it clear to the shipbuilding industry and
the New South Wales Government that shipbuilding costs are far
too high. The taxpayers would be subsidising workers at Newcastle
dockyard to build two A. N. L. ships at more than $ 20,000 per man.
Clearly then, the Government had to make a decision about the
future of the dockyard.
Last week, the Government presented Mr Wran with a number of
proposals designed to keep the industry going and to save the
Newcastle dockyard.
In essence, the Government was simply asking the dockyard
workers not to strike, to improve productivity and to agree to
forego wage rises above indexation. ./ 2
In return the Government offered to support the dockyard
with more thana $ 29 million subsidy to build the two
A. N. L. ships all money from the Australian taxpayer.
Even before the workers involved were given an opportunity
to consider the offer, Mr Wran was making it clear the
offer was totally unacceptable.
He pre-empted the decision and possibly the wishes of the
workers themselves the men he claims to have concern for.
His main concern is to avoid his own financial responsibility.
The Government believes our proposals fo~ r the dockyard are fair.
Under no-circumstances could we agree to an,' open-ended programme
of financial support. We had to be sure that -the taxpayers' money
was not being wasted. We had to be sure that the dock-yard workers'
really wanted to save their jobs.
I believe that the Australian taxpayers and the Australian0
workers have a right to know that the dockyard workers were
willing to pull their weight.
Throughout the months of negotiations over Newcastle the Government
has been concerned about industrial unrest at the yard,
The figures show a singular lack of genuine effort to slow down the
rate of industrial disruption. More than 168,000 man hours have
been lost at the Newcastle dockyard in the 12 months to
October this year, and yet, the union had claimed that industrial
trouble had stopped in the year.
The Government was not prepared to tolerate this situation with so
much taxpayers' money at stake in keeping the yard operating.
It is for that reason that we put up our proposals, that some say
are too harsh. We believe we owe the Australian taxpayer
nothing less.
Our proposals are not harsh they ar e just and reasonable. 0
While the idea of an industrial relations contract between unions
and management is novel in Australia, it is common overseas.
The Government is not asking for too much.
We are simply asking for the unions to use proper dispute
procedures so there will be not strikes. We are asking for
the unions to give up strikes while the ships are being built.
We are also saying there should be no increases in wages above
adjustmen-ts awarded by the Arbitration Commission or by the
appropriate wage tribunals.
In return, the Government is providing substantial support to
keep the industry alive. The indemnity clause in the contract is
entirely in the unions' own hands. Indemnity will simply pay for
strikes that ought not to be happening because the unions
are contracted not to strike. 3
The Government hasbeen patient on this matter. We have
listened to argument and considered options.
We have been particuarly concerned about jobs in the
industry. We have made strong efforts to protect those jobs.
But the Government will not accept the wider consequences
of allowing wildcat of political strikes and demarcation
disputes. We cannot accept the consequences of open-ended
financial support.
Our proposals to keep the New South Wales owned Newcastle
dockyard going w and to save the jobs of the men involved
are firm and final.
If jobs are not to be lost and an industry not thrown on
the scrap-heap, our offer must be accepted. I don't believe
Australians think there is any other way.
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