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FOR PRESS 31 January 1976
INDEXATION AND EIPLOYD4ENT
The Government took its decision yesterday because it
is vastly concerned about employment and the need to provide
opportunities for those who are out of work, and especially
for those seeking their first jobs.
The number of unemployed will inevitably rise this month,
a s has been widely predicted.
The Government had the unpleasant task of choosing between
the full application of wage indexation and policies which are
designed to curb inflation and to enable. industry to start
providing jobs.
We have placed jobs first. I hope those who will be making
submissions to the Arbitration Commission, and the Commission
itself, will also place jobs first.
There are no soft options left for Australia. The Government
next week will announce difficult ! decisions in relation to its
own expenditure.
Trade union leaders should be more concerned with providing
jobs for those who are unemployed than in asking for higher
and higher wages for those who remain employed.
There is no point in higher wages at the expense of a
neighbour's ' job.. The Arbitration Commission has great influence
on the direction of the Australian economy.
2.
If indirect taxes continue to be applied as part of the
indexation process, the Government's ability to manage the
economy with justice to all sections of the coniimunity will
be seriously jeopardised.
Those who experience the benefits of wage indexation become
an exempt group. Indexation at present compensates them for
the effect of indirect taxes which the rest of the community
have to bear.