My dear Premier,
Thank you for your recent advice concerning those
employment related projects in your State which you
would wish to see funded from the Commonwealth's Wage
Pause Program.
As you know, the Commonwealth has appropriated $ 300
million, corresponding to its anticipated savings under
the Wage Pause Program, for expenditure to generate and
maintain employment in Australia. Of this amount the
allocation of a total of $ 100 million for a welfare
housing element of the Program was announced in
December.
The Commonwealth has decided that the remaining $ 200
million should be allocated between the States and the
Territor-ies under two additional elements of the
Program. $ 100 million will be provided for assistance
to the young unemployed and $ 100 million to assist older
unemployed and others disadvantaged in the labour
market. The youth element of the Wage Pause Program will provide
assistance to unemployed young people by offering them
an opportunity to work on worthwhile community projects
rather than being unemployed.
The other element will be aimed particularly to assist
the older unemployed and others who are disadvantaged in
the labour market. This group will also, of course,
benefit to a greater extent than the young from the $ 100
million welfare housing element that has already been
allocated under the Wage Pause Program.
Proposed guidelines for both the new elements of the
Program are attached. It is intended that State and
Territory initiatives for employment generation and to
assist youth would be considered for support under the
umbrella of the Wage Pause Program.
The type of projects you nominated in December are
generally acceptable to the Commonwealth and, provided
they satisfy the conditions of the Special
Employment-related Programs Act, would seem appropriate
for funding under the Wage Pause Program.
The Commonwealth has decided to allocate the remaining
funds between the States and the Territories on the
basis of the recently released population statistics.
On this basis, each $ 100 million would be allocated as
follows:
million
New South Wales 34.96
Victoria 26.33
Queensland 15.95
South Australia 8.77
Western Australia 8.79
Tasmania 2.83
Northern Territory 0.84
Australian Capital Territory 1.52
We propose that a Commonwealth/ State Ministerial
Committee be established under the chairmanship of the
Minister for Employment and Industrial Relations, the
Hon. Ian Macphee, MP, to oversee the-new elements of the
Program. The Committee would meet as required so that
experience with different projects could be shared by
all with a view to supporting those initiatives which
prove to be most effective.
The Commonwealth proposes that the Ministerial Committee
meet in Canberra, preferably Wednesday next week, to
finalise decisions on projects to be included in the new
elementsof the Wage Pause Program. It would, I think,
be desirable for officials to meet beforehand. Funds
from the Wage Pause Program will be made available
immediately after Ministers have met and decisions are
finalised. In addition to the Minister for Employment and
Industrial Relations, the Minister for Social Security,
Senator the Hon. Fred Chaney, will also be present.
I should be grateful for your urgent response to these
proposals and for your nomination of your Ministerial
representative. I hope that the Commonwealth's Wage Pause Program will
receive your support. It is framed to provide
flexibility for each State and Territory to mount
projects directed at their own priority areas while
maximising the benefits of available funds.
Yours sincerely
( Malcolm Fraser)
[Exact date unconfirmed]