PRESS OFFICE TRANSCRIPT 15 DECEMBER 1978
Interview with Laurie Power on Side Steps of
Parliament House
Question
Mr. Fraser, the last year has been a fairly tough one,
economically and for employment. What are the prospects
for the coming year?
Prime Minister
The prospects for activity, economic activity, I believe
are much better indeed because the benefits flowing
through from lower inflation, more stable cost base,
is really starting to have an impact. I've been
given indications on a subjective way, not statistical
yet, but many firms have had a better time over the
few months and are looking forward to 1979 with more
optimisim and enthusiasm than they have had for
many years.
The BHP domestic production, steel production for
domestic sort of purposes, is up very very significantly
over the same period last year. That is as a result of
a better situation in many Australian industries.
Coming on top of that, the Australian farming community
are facing better times than they have for a very long
while. You've got all the major components: bumper
wheat harvest and good prices. Sheep, beef, meat prices,
are all good and that's coupled with a good season
right around Australia. Farmers who for many years have
had to button up are getting the benefit of these things
with a more stable cost base and they will be getting
on with deferred maintenance, replacing worn out equipment,
repairing buildings renewing fencing.
That will flow through to country towns, to the industries
that service the great rural communities and rural
industries and that, therefore, will provide a lift which
I think our official forecasters often underestimate
the impact of the rural community on Australia.
So all of this means a much better outlook in terms of
activity and that is good for Australia.
I continue to be worried about employment and especially
so in the face of the last wage decision because I don't
want to see a situation develop in which, in a sense, there are
two communities within Australia a prosperous section
and then a group because of the price of labour is alhost
permanently priced out of work. / 2
-2
Prime minister ( continued)
Now, the price of labour: if you have a factory and
you are producing something and you can't sell it all,
you try and reduce the price if you can so you will
sell more of whatever you are producing. But when
people come to the price of labour, something which
af fects the livelihood and the well-being of people,
they don't react that way. They say " well, let's
put up the price of labour even more". That plainly
is going to make it harder to see that the jobs are
created. It will provide a greater stimulus to people
to go to mabhines that can replace labour. The 4 percent
wage decision showed no appreciation or understanding
of that.
Question
And that's the concern that's brought about the review
of the wage fixing structure?
Prime Minister
It has yes. I have written to the Premiers about this
because they have their own wage-fixing Tribunals.
They often leap-frog the Commonwealth Tribunal.
There is a very serious case in the oil industry in
New South Wales where a State Tribunal gave a judgement
three or four days after a Commonwealth judgement and
destroyed the stability created by the Commonwealth
judgement. Now these things are serious. They are an
aspect of the problem. If we are to get to a better
resolution of it, the States are certainly involved.
The surveys show that overwhelmingly, the working men
and women of Australia in Australian factories understand
what I am saying. They also show that they agree with
what I am saying. That they know that unreasonable
wage increases do harm to their colleagues and to the
bloke down the street who can't get a job. What we don't
have in this country is a trade union leadership that
will recognize, that will lead, will act with responsibility.
I suppose there is some irony in this.
You've got a Liberal Prime Minister in Australia who has
these problems with his trade union leadership. You have
a Labor Piime Mifiister in the United Kingdom who has
exactly the same problems with their trade union leadership.
But the view of the British Labor Government and of-my
government, is virtually identical in relation to the
consequences that flow from unreasonable wage decisions
that takes jobs away from people.
We ought to be prepared to show our concern, all of us,
as a total community, in recognising that we all have a
responsibility. 000---