PRESS STATEMENT NO 367
THAALIA zH
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THE PRIME MINISTER, MR WHITLAM, THIS EVENING
RELEASED THE TEXT OF HIS LETTER TO MR JUSTICE
WILLIAMS, CHAIRMAN OF THE PRICES JUSTIFICATION
TRIBUNAL, REFERRED TO IN HIS STATEMENT ON
THE ECONOMY.
THE TEXT OF THE LETTER IS ATTACHED.
CANBERRA 13 November 1974.
PRIME MINISTER CANBERRA
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My dear Judge, I am writing at this time to convey to you
officially the concern with which the Government regards
the present economic situation, particularly in relation
to private investment and employment.
The Government is now undertaking a number of
measures to deal with this situation, and I am this
evening making a statement in Parliament on the subject.
A copy of this statement is being sent to you for your
information. As you will see, I emphasise the complexity of
the problems confronting us and the fact that rapid
inflation is now accompanied by rising unemployment and
a falling away in private investment on which economic
growth and continued prosperity greatly depend. I also
refer to the particular problem that, in considering
new investment projects, businesses are concerned about
the prospects of maintaining worthwhile returns, not just
in the immediate future, but over the whole life of the
investment concerned, subject to normal market risks.
I therefore undertook to write to you indicating
the Government's view that, in the present economic
circumstances, the Prices Justification Tribunal should
give particular attention to the problems of sustaining
and stimulating an adequate level of private investment
and of maintaining rates of return on capital which will
induce the new investment required to maintain economic
growth and employment.
The comments that I have made are not intended
in any way to reflect on the manner in which the Tribunal
is carrying out its statutory responsibilities. Indeed,
the Government has confidence in the Tribunal's judgement
and responsiveness to the changing economic situation in
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considering particular prices or price increases, and
has no intention of changing its basic functions. In
particular, the Government appreciates that the Tribunal
has played an important part in curbing inflation and
there can be no doubt that it has been successful in
restraining prices below the level that would otherwise
have applied. While, therefore, it is desirable to make
clear the importance that the Government attaches to
investment and employment matters, it is of course
intended that the Tribunal should continue to act, in
accordance with its statutory responsibilities, to
ensure that prices are not set at levels which are higher
than are properly justifiable and that companies are not
passing on in prices avoidable increases in costs.
Yours sincerely,
t-G
E. G. WHITLAM
The Hon. Mr. Justice L. H. Williams,
Chairman, Prices Justification Tribunal,
Queens Road,
MELBOURNE. VIC. 3004