FOR PRESS: P. M. No. 104/ 1968
PREMIERS' CONFERENCE
Following is the text of letters exchanged by the Premier
of New South Wales ( Mr. Askin) and the Prime Minister:-
Mr. Askin's Letter ( dated 19 December)
Dear Mr. Gorton, The State Premiers met yesterday in Adelaide
to consider further the matters which they discussed in Sydney
in October last and which have since been the subject of
correspondence between us.
With regard to the impact of recent wage changes
on State finances, you did suggest that our Treasury officers
should meet to establish the facts. In point of fact our respective
Under Treasurers have met, and it seems to us that the information
they have collated and which forms the basis of the statement
which I am submitting with this letter, is quite straightforward
and that there is no real necessity for Treasury discussions.
The submission attached is on behalf of all the
Premiers and shows that the impact of the National Wage Case
on State finances for the present financial year will total
$ 23 million. After allowing for the assessed effect of these
increases on the tax reimbursement grant for this year, the
net burden which the States must meet is roundly $ 14 million.
As against this we have also been given figures to show that
after meeting its own costs and allowing for the increase in
the tax reimbursement grant under present formula arrangements)
Commonwealth revenue will show a substantial net gain this year
as a result of this wage decision.
The attached statement also shows the costs in
which the States have been involved in respect of their recurrent
expenditure because of other award changes since the June
Conference, and with the national wage case costs the figures
aggregate $ 48 million for this year alone.
At the unanimous request of all Premiers and
with a sense of great urgency, I now ask that you meet us to
discuss the information which I am now submitting and to
consider how our problems can be met. / 2
-2
While naturally we would prefer these discussions
to be with you personally, if it should be that your commitments
preclude you from doing this we would be prepared to talk with
the Deputy Prime Minister and the Treasurer.
What I have said does not cover the major issue
of Commonwealth-State financial relationships generally. We
also desire to discuss this problem with you as soon as it can
be arranged. Yours faithfully,
R. W. ASKIN
Premier and Treasurer.
Prime Minister's Letter ( dated 27 December)
Dear Mr. Askin, I am writing to acknowledge the receipt on
23 December of your letter of 19 December. I note that you
have attached to it information collated by the Under Treasurers
of each State and that it seems to you that there should be no
real necessity for discussions between our Treasury officials
and those of the individual States. I have referred the information
you supplied to my colleague, the Treasurer, as clearly we must
have it examined by our own Treasury officers. I assume that.
if they are unable to agree with your figures you would not, speaking
for New South Wales, object to their communicating and discussing
with your Treasury officers any queries they may have?
It is my intention to propose a Premiers' conference
in the New Year to discuss the financial arrangements, as from
1 July 1969, concerning roads. This could also provide the
opportunity you request for you and your colleagues to discuss
with us the problems, and the submitted information, mentioned
in paragraph 5 of your letter. Having regard to my commitments
arising from the Commonwealth Prime Ministers' Conference, I
suggest that we meet in Canberra on Thursday, 13 March, continuing
as necessary on Friday, 14 March. Our new Parliamentary sittings
are to begin on 25 February and the dates I mention will be the first
recess in those sittings. Yours sincerely,
J. G. GORTON.
CA NBERRA
31 December 1968