FOR MEDIA 23 April 1986
ZMBARGOED UNTIL 100pm ITALIAN TIME, 9Olbpz AEST
The Prime Dlinister of Australia, and the Prime Miniatar of
Italy# Signor Czraxil today signed an historic treaty on social
security matters.
Mr Hawke said that dincuasions between the two countries had
been proceeding in a desultoxy fashion since 1952 but there
have always been obstacles in the way of progress.
He said " my Government which camne to office in March 1983 has
shown the initiative and determination to find the solutions.
We ha~ ve consulted widely with migrant communities in Australia
and-the solutions we haus found have widespread support".
The Italian and Australian social security systems are quite
different. Italy has a contributory system whereas the
Auctralian system is funded fromn taxation revenue. Italy pays a
penaion based on periods of contribution combined with level of
eanings ( with a minimum level of pension) whereas Auntralia
pays a fiuad rat pension. The Italian systam applies generally
to income earners whereas the Australian oystem applieB to all
adults who have resided in Australia.
The Australian Government has had to pacs legislation introducing a
system of proportional portability of pensions to credta a basis
on which it could negotiate agreemente.
Mr Hawke said " ths completion of this agreement will be a major
benefit to Italians and Australians who have spent some-time in
both countries. It overcomes gaps in coverage of the two social
security 3yatems which'have led to inequitios in treatment in the paot.
' it is a major cocial advance.
" Over 20,000 people in Auatralia and*. ItAly. tane expected to benefit
directly. These people will include:
people who have spent less than the minimum qualigying period
in ona of the countries ( eg less than 15 years employee
contributions in Xtaly or less -than 10 years residen= kiAintralia),
people who have spent son-ie :. time in AustralizY but who have
returned to Italy before they have beome due for a penaion.
" I am delighted that thic Agreement wil11 enable Auetralia to pay
pensions to many people who have contributed to society in Australia
but who have chosen to retire in Italy.
2.
" Australia is proud that some 500,000 Italians have chosen
to migrate and to make Australia their new home. They have
made a major contribution to economic, social and cultural
development in Australia and hence to its progress as a
nation. This agreement brings us closer together and
enables people who have moved their country of residence
to receive better rewards for a lifetime of work.
" Officials from the two countries are now working on
administrative processes to ensure that the Agreement
can be ratifieA11and come into force ot the earliest
possible time.
Mr BuW~ ke -; iddñ ztib~ ite t the work done my Mr Howe, the
Ministerlfor Social Security, for the work done in bringing
these negotiations to finality. He said that without his
interest in the welfare of ethnic cozmunities and his
initiative we would still be dithering as other Ministers
had done since 1952.
He added that Mr HOwe will issue Statements from time to
time advising the public of progress with other agreements.