~ P R 2fiiE BY] II S T R
FOR PRESS 18 APRIL 1977
INCOME AND PRICE RESTRAINT
The Federal Government has adhered scrupulously to the spirit
and the letter of the agreement reached last week with the State
Premiers on income and price restraint.
All actions taken by the Government are consistent wit~ h the joint
statement which was issued at the end of the Premiers Conference.
The hearing of the Conciliation and Arbitration Commission, which
is to take place tomorrow, is entirely at the initiative of the
Commission Chairman acting within his statutory powers..
The agreement itself did not contemplate that the Arbitration
Comiission, of its own initiative, would bring on a hearing
at this time.
At all stages, the Commonwealth has consulted fully with the State
Governments as its partners. Accordingly, the Commonwealth
sought the views of the States on the approach which should be
taken before the Commission and, in the spirit in which these
views were sought, it welcomes constructive suggestions.
This was made completely clear to the Premiers.
Some Premiers have expressed the view that the calling of the
hearing at this stage is outside the agreement we reached in
Canberra.
Accordingly, in the spirit of the agreement which we en.-tered into
we will be altering our submission to the Commission to take
account of them. We
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We propose therefore in our submission to explain the background to
our joint initiative; to refer to the clear understanding in the
agreement between the Heads of Government that action would be sought
by the Commission following agreement by the parties to a voluntary
general pause; and to ask the Commission to defer consideration of
action at this stage.
We will also suggest that the Commission might explore assisting
the parties to arrive at an agreement on a voluntary general pause.
Under the agreement, and in support of it, the Government has sent
messages to more than 200 employer and employee organisations.
It has made a national appeal to the community at large to work
for price and income restraint.
The Minister for Business and Consumer Affairs, Mr. John Howard,
has written to the Prices Justification Tribunal asking the Tribunal
to defer decisions on price rises and to investigate any claims
that price increases have occurred.
All Commonwealth Ministers and Departments have been instructed
that there shall be no increase in Commonwealth charges, fees, etc.
Action has already taken place in a number of specific areas to
stop increased Commonwealth charges which were in progress.
On Friday I met with representatives of 25 major national employer
organisations which indicated their willingness to support restraint.
Yesterday Mr. Howard announced that the Government was proposing
a special group representing employers, unions and the Prices
Justification Tribunal to assist in the implementation of the
wage/ price halt.
All these actions are firm evidence that the Government is
pursuing its agreement with the States wholeheartedly, and in
full consultation with the States.
The Commonwealth has consulted the States throughout the period
since the Premiers Conference on action taken and proposed.