_.) AUSTVAI I A
FOR PRESS10 DECEMBER 1976
NEWCASTLE STATE DOCKYARD
The New South Wales Premier, Mr. Neville Wran, has
communicated with the Prime Minister over the future
of the Newcastle State Dockyard. His message and
the Prime Minister's reply are attached. I
0. IL PRIME MINISTER C: ANBERRA
My dear Premier, I refer to your telex message of 9 December
about the future of shipbuilding at the State Dockyard
at Newcastle and, in particular, the Heads of Agreeme-nt
and the Industrial Relations Contract between your
Government and the ACTU and shipbuilding unions at
Newcastle. Your message states that you understand that
the President of the ACTU will be meeting me shortly to
discuss these matters. That is not correct. My
discussions with Mr. Hawke on Monday next are to cover
wages policy matters.
The position is that the New South Wales
Government, as the owner of the ' Newcastle State
Dockyard and the employer of the union members in it,
made approaches to the Commonwealth with the aim of
keeping the Dockyard in operation. As a result of those
approaches, and its consideration of the IAC Report and
various other reports, the Commonwealth decided on the
Heads of Agreement for an Industrial Relations Contract.
In our discussion on 19 November I made it
clear to you that the Heads of Agreement are firm and
final and that the Commonwealth expected that you
would negotiate the Industrial Relations Contract with
the ACTU and the shipbuilding unions. You accepted -that.
At no stage was it contemplated that the Commonwealth
would be involved in the negotiations with the ACTU and
unions. You agreed to respond before 17 December on
the results of your negotiations, and on your
Government's attitude to the other contractual
arrangements necessary for the construction of the two
ANL ships at Newcastle. o. ./ 2
Nothing has happened to alter the position
reached at our meeting on 19 November. It would
therefore be inappropriate for me to discuss the Heads
of Agreement or the Industrial Relations Contract with
Mr. Hawke and I do not intend to do so. It is, I
repeat, up to the New South Wales Government, as the
owner of the Newcastle State Dockyard, to negotiate the
Industrial Relations Contract.
I look forward to receiving advice of your
Government's position before 17 December, as agreed. o
Yours sincerely,
( Malcolm Fraser)
The Hon. Neville Wran, M. L. A.,
Premier of New South Wales,
SYDNEY. N. S. V. 2000 I
DEPARTMENT OF THE PRIME MINISTER AND CABINET
IINWAR S TELEPRINTER IESSACI
Referred to at on
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9.12.76' THE RT. ' HON. FRASER, m. P.,
PR I IME MI 1 1I STER OF THE COi> 1--ON&-, EALTH CF
AUSTRALIA,
CA NIBERR A.
FOLLOWING TALKS WITH THE PRESIDENT CF THE A. C. T. U.
MR HAWKE I UNDERSTAND THAT HE WILL BE NIEETING YOU SHORTLY
TO DISCUSS THE FUTURE OF THE NEWCASTLE STATE DOCKYARD AND
THE TRADE UN IONS RESPONSE TO THE COM* 1IONvIEALTH GOVERNM11ENT' S
OFFER. AS TO THE HEADS OF AGT EI* ENT OF THE INDUSTRIAL RELATIONS
COI-TRACT SUBM ITTED BY YOU TO THE N. S. W. GOVERNMENT, I T MUST
BE OBVIOUS THAT NO FINALITY CAN BE REACHED U! NTIL:
A) THE COillMCNWEALTH GOVERNd; ENT COMES TO SOl'ME AGRECEENT
WITH THE A. C. T. U. AND SHIPBUILDING UNIONS AT
NEWCASTLE: AND
B) THE DETAILS OF THE I: NDUSTRIAL RELATIONS CONTRACT ARE
WORKED OUT.
AS TO THE THREE OTHER CON-ITRACTS REQUIRED BY THE COMMONWEALTH
G 3V E R N I E NT. U
A) THE NE4-SOUTH WALES GCOVERIM-ENIT 13S PREPARED TO ENTER
INTO A CONTJRACT '. 11TH ThE QMi~'! AT GOVERNMElN4T TO
SHARE $ 1 FOR $ 1 TO EQUATE THE NE7, WCASTLE DOCKYARD
AFTER s UBSIDY PRICE WITH THE JA ANESC. RIE
B) THE NEW SOUTH WALES1 1OEP3RMETPIA RED TO ENTER
INTO A-SHIPBUILDING C0ONTRACT NITH A. N. L. WHICH WILL
INCLUDE NORMAL PROVISION-S TO MEET LIQUIDATED DAMAGES
RESULTING FROM A BREACH OF CONI. TRACT. NEGOTIATIONS
BETWEEN A. N. L. AND THE NIEW SOUTH * viALES GOVERNMENT
COULD PROCEED IMM1EDIATELY.
C) THE THIRD CONTRACT, BETWEEN THE CiOMMONWEALTH GOVERNMENT
AND THE A. NM. L. DOES NOT REQUIRE PARTICIPATION BY THE
N. S. W. GOVERNMENT.
NOTWITHSTANDING OUR WILLINGNESS TO PARTICIPATE IN THESE
CONTRACTUAL ARRANGEMENTS THE N. S. W. GOVERNMENT HOLDS THE VIEW
THAT THE TERMS LAID DOWN BY THE COMMONWEALTH GOVERNMENT IN THE
HEADS OF AGREEMENT TO BE UNNECESSARILY HARSH.
IF IN PRINCIPLE AGREEMENT CAN BE REACHED AT THE MEETING
BETWEEN YOURSELF AND THE A. C. T. U. ON INDUSTRIAL RELATIONS
CONTRACT THE NEW SOUTH WALES GOVERNMENT WILL CONSIDER IN
THE LIGHT OF ITS CONTENTS WHETHER WE ARE PREPARED TO BE
PARTY TO IT.
I WILL BE PREPARED TO DISCUSS THE MATTER AT ANY TIME WITH
YOU. IN VIEW OF RECENT EVENTS AND WITH A VIEW TO AVOID ANY
MISINTERPRETATIONS I INTEND TO RELEASE THIS TELEX TO THE
PRESS AFTER YOU HAVE RECEIVED IT. NEVILLE WRAN,
PREMIER.
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