.8. PRMME MINSTER
FOR MEDIA 26 April 1983
one of thle most important results of the National Economic
Summ~ rit Conference was that during the period of wage restraint
increases in dividends and non-wage incomres such as directors'
fees should also be subject to restraint.
Accordingly, I have written to the leaders of many publtic
companies in Australia seeking their support for restr~ a. it
in this area.
Through this statement I would like to extend the rcqucst
to every company in Australia.
A central theme of the Surixit was the common recognition
that economic recovery will require res; traint in expectations
and claims from all. sections of the comirunity, excepL the
irmpoverished.
More specifically, Summit participants agreed thaxt if restraint
was to be exercised, then it would bc universal.
It is important that non-wage incomes do not increase fas ter
than movements in wages.
Employers' representatives at the Summiit recognised that during
the period of wage restraint, dividend increases should also
be restrained.
They agreed to recommend this course to their organisations.
It was also agreed that the Gover~ nm1ent recommwend restraint in
non-wage incomes to all public cormpanies.
The Summit recognised that for many companies the recessio-n
had led to reduced dividends, and restoration of reasonable
profitability was some way off.
Ncvertheless, I would hope that in the spirit of shared
restraint so evident at the Summit, priority in applying
fund!; in the course of recove~ ry would be given to restoring
and expanding job opportunities, ahea& of improvincj dividends.
The Governinent is conscious that restoration of adeqjuate
girowth in the economy will not b~ e ea~ sil~ y or cquickly ilhic" ed,
antdh at recovery will. require consistent application ofa
range of policies.
All of us at the Summuit were agreed, however, that viable
and eqiuitable arrangemzents for secur-ing mutual restraint in
irncomnes were quite central.
It is with thi~ s sense of the importance of what we are
undertaking that I am seeking the support of the whole of
the busineos comxiunity in this matter.
I and my Ministers atre also engaged in discussions with the
ACTU to ensure that the spirit and intent of the-Sununit is
adhered t~ o in remupect of wage incomes in line with the prices
and incomes accord. .3
J~ S 3~ 3.