4~ ASTRLI~ L-CHECK AGAINST DELIVERY
FOR MEDIA WEDNESDAY, 27 JANUARY, 1982
LAUNCHING OF CAMPAIGN FOR CONSTRUCTION
OF N. F. F. HOUSE
CANBE RRA
It is a great pleasure to have the opportunity to launch
the campaign for the construction of N. F. F. House
for the in just two and a half years of existence,
has established itself as an effective and constructive voice
for Australian farmers in the National Capital. In doing so,
it has fulfilled an objective a dream that many in the farming
community had been pursuing since the turn of the century,
namely,. to establish a single national organisation to
represent farmers.
I applaud the success of the N. F. F. in securing an unprecedented
degree of unity among representatives of rural communities,
and I applaud its success in promoting the interests not only
of farmers but of the whole Australian community through its
constructive approach to major issues of national policy.
What the N. F. F. has achieved the role it has played could.
not have happened with divided organisations representing
the rural interest.
I would like to take this opportunity to make some brief rema~ rks
about two issues of concern not only to the N. F. F. and its members
but also to the Australian community at large the issue of
inflation and wage settlements and the issue of the latest
Japanese beef tender.
There is no doulbt that inflation remains a major threat to the
renewed growth and prosperity that the Australian economy has;
experienced in the last few years, for it undermines the
confidence, profitability and competitiveness of producers inl
all sectors of the economy. And without question, the greate! st
potential source of continuing inflationary pressure lies in
excessive wage-settlements. It is not only producers who suffer loss
of profits and sales as a result of high wages: their employees
also lose for, directly or indirectly, employees can price
themselves out of the market and destroy job opportunities not
only for themselves, but also for those who are already unemp" Loyed.
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The last six months has seen a significant change occur
in the wage determination process. Following the Commonwealth
Conciliation and Arbitration Commission' s decision to abandon
wage indexation, a series of industry-by-industry cases have
gone before the Commission, and settlements of various sorts
have been made, now covering an estimated 65% of wage and
salary earners. We may not all be happy with everything that
has occurred, or all the settlements that have been made, but
what is done is done. What we need now is time to digest
the wage increases and other developments that are taking place.
What we do not Want, what the economy must not be subjected
to, is a further general wage increase on top of those which
have already occurred.
There is one aspect of wage increases in recent times that
I think stands in need of some correction, an aspect that is
particularly relevant to the perceptions of farmers and the N. F. F.
People often point at manufacturers, especially those affordedl
protection by tariffs, and argue that by conceding excessive
wage increases under the shelter of Government assistance
policies, they lead the thrust to higher wages throughout the
economy. But the reality is quite different. While the metal
trades award is certainly a key award in the wage process, and
spreads throughout the system, in terms of the size of wage
increases, workers associated with export oriented projects
miners and construction workers on big resource projects
have been among the leaders, and in terms of the timing of
increases in the industry-by-industry wage round, workers in
the naturally protected non-trading sector transport workers
and storemen and packers have led the round. But in the endt,
it really matters little where the wage pressures start from.
The very fact that they exist threatens profitability and
competitiveness in all sectors of the economy, and threatens
the prosperity of all Australians, especially in a period when
trading conditions are so difficult because of the world
economic situation.
Australia has been subject to inflationary pressures because of
our growth and development. Our important t rading partners iii
North America and Europe have had little or no growth
and are suffering massive unemployment rates in the vicinity
of 8-10%. As a. consequence, inflationary pressures in those
countries Eare less than those we face. They are still diminishing
and the combination of these overseas factors with the very high
wage settlEments which have been taking place in Australia means
that overseas inflation rates could drop below our rate.
Combined with slack world trade, these overseas conditions
are creating a difficult situation for Australian producers and
exporters. The Government is aware of these problems, and I am
sure you are aware of them. I just wish that more of our
unions and employees were more aware of them and more aware of the fact
that high wages create more une'mployment than there would otherwise
be. / 3
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It is appropriate t~ hat I should also take this opportunity
to say a few words about the latest Japanese beef tender.
I am disturbed that about half of this tender has specifications
which'can only be met by U. S. grain-fed beef.
When the Minister for Primary Industry, Mr. Nixon was in Japan
just over a month ago, he received assurances at the
highest levels of Government that Japan's beef imports would
be administered in a genuinely non-discriminatory way.
But the fact is that over the past 12 months in some
specific tenders, we have seen the share of U. S. specification
beef steadily rise. It rose from around 25% in earlier tenders to
38% in a tEnder announced last month and now in the latest
tender it has risen to 49%. This is obviously a matter of
great concern to the Government. Today Mr. Anthony called
in the Japanese Ambassador to protest about the terms of this
latest tend. er, and the Government will be seeking urgent
clarification of the Japanese Government's intentions before
considerinc-what further action it might take.
At a time of major challenges to the Australian economy and
to the well-being of farmers an organisation of the calibre arid
vision of the N. F. F. has an important role to play. The record
that the N. F. F. has established in a short space of time
has ensured that it is here to stay, and the construction of a
permanent headquarters for the N. F. F. here in Canberra will
give concrE. te expression to that fact.
It gives ME! great pleasure to launch this campaign
and to wish it every success. 00