JHBP(. O01.) AG1AIENST DELIVBPRY,
MIPEiCTE) AT APPROX. 8. P. M.
% I x1
FOP, PRESSOCTOBER 29, 1976
ADDRESS TO THEl MFLBOURNE CEQ41E3R OF C( ObHIMERC1E
Thank you for.-Your ir4vitation to address you this evenang.
I am glad to*-have this opportunity to discuss with -you the,
Governmnmt's-think\ ing on a number of import'ant. is'sues.
The principal' concern of us all at the moment is economic
: recovery. Throughout th-is year the Governiment bas given top
pririt tothe fight against inflation. Until i-nf: Lato
is-brought under ' control -there -will be no solution to the
' problem-of unemploymrent-.
inflation is-, the g-; re-atest. single enemy of individual
security, of : Jobs, of a'resumption of economic growth, and
of our interna -tional competitiveness.
The attack on'ainflation has been. based on~ a strategy o f.
restrai-nt in -Government spending and restraint in wage . an d
salary-incrcases. With cooperation from all sections of the
community thereare now Clear signs that the, battle is being
' Won. The%-Consumer: Price Index increased by 2.2 percent in t he
, Septemher quiarter, the lowest quarterly -increase, iwith t-he
exception of the MedibanR abe rration, since tbe Muirch
quarter in 1973-There wiji be an apparent break in this
i-mproving trend in thc Dlecember quarter as the changos to Hedibank
affect the C. P. I. The community has to pay for its health servicet
in one form or-anotber.. We should not be diverted from that
fund-amental falct by focussing on one index. With continued
good'sense prevailing in wage determainations the December result
will only briefly obscuru it continuing trend to lower rates
of inflation.
This in turn will cteate the conditions in -which a signifi cant
da~ cline in-Imempioymcnt can come about. Let me emphasise
that our coincern with uneinploymcnt is one of ' the major reuasons
why wo -arc pressing the attack on inflation so strongly.
S-ome apparenflt3y believe that we should relax the pressure
on inflation and should incr'ease Government spending, in the hope
thut wn~ employment can be brought down morve rapidly. This
Jp) L lr-UlJ1~ i t. If t-hc : xci C ! i 0 t 1 a-ST filw )' Zr
has tautght us a. n-yt'-Thiag it has surely demuonstrated that the_
condi tioxniso w f~ i Aust-ralia, higher Govanil~ OYtsedn
7I4R E PA N ' 53" l-P-IR
Z.
can -actually be -associatted with Worsening
tin emlyieit In one year imder Labor Fcderal Government
spenld. ing rose -by 46%-and unemploym~ ent by almost
200000-. almost 200(, 000 in one year.
While action can certainly be tknto ease the problemn of
uncmploy-nexit in the shiort torm -and we are taking such ac-tion
it real solution will only bt found when iinflationi is beaten.
If tihe Govornmert tried tko hasten the growth in activity and
eMplo0yment bV" pumP Priming" this ' would quickly show 11p in
more inflation-* n -at best,, only ttemporary reductions
t. n unemployment...,
The'-approach we ; ire flow foilowing..; in -Justralia is the course
which:: has. been tak en in virtually all the major industrial
countri es. In-the light of th experience of recent years
it S~ wcepted that,.. the growth ofGovernment spending
muset. tbw-e-nc tt hbec k astfisal ~ d he. preentone.
The-. Uni ted. Kingdomn has. cut back the raeo0rwho eta
Government s pen di ng from 28% to l7 Canada from 19 to 1M,;
Gem v-ny from .19 -to N1-w Zealand from 2-4 to 5t; United
States from 113-' to 1114; . Australia frtom 23 to l~
As I . said earlier. there are now clear signs that that.
strategy is.-working. The ultimate stuccess of this strategy
is goinpg to-depend, however, not only on what the Government
does, but -On: the actions and attitudes of both managlement an& l
emnployees.. No section of the communi ty can adopt is attitudes, or act,
in isolation from t1. he rest of the comwity.
It is -a very shortsighted view to thinrk that one group can
prosper by depressing the condition-of another. We are all
interdependent, and if we want. Australia ' to recover -and prosper
w-have to be prepared to work : together to achieve that result-.'
Both trade u~ nion leadership and management carry a heavy
responsibility for creating the conditions-which will lead
to a soundly based recovery
Trade union leaders can do much to ease the problem of
unemployment by helping-to restrain wage and salary demnands.
ThiS . r * estraint, m akes possible conditions in which, inadustry and
commerce. can provide desperately needdid jobs. The social
responsibility-: of trade unions in present ci-rcumstances extends
of course ' well beyond the c-ontainmient of wag'e and salary
demands-to reasonable levels. It encompasses rejectionof
unreasonable strikes of all kinds -of political strikes
strikes . resulting from inter-union disputes whicliraise costs,
inhibit production, and destroy more job OPPO-tunities.
One crucial p) oint wh'-ich needs to be made again and again is that
both employees and. managlament as well as thf-Public at large
have an ovor-riding common interest -in a profitable, efficicnt
-and productive sector.
whatever differences there-may be arising over padrtictuar
mattors -from time -to time, iIn cir TCUMstaces such as
the presen-t we must all work to see that this common interest
has ai deciSiVe Voice. There has been a great deal of
ill1-conceived-talk about tha Government's policy on real wage,,.
Vhere IS 011c central point htere which must not be obscure * d:
if real wages, are to incecase without somieone else bceing
worse off there 1) as to be Lan incroase in prodluctioi3. The
bust guarante-of rising real wages -is a profitablc private
sector suppotting a growing economy.._
Achieving this is -not just a Job for the Government -bt
insofar as Government policy can create thvewneessary conditions
that * is what.-our policy is designed to do. Our policy : Ls
des_-igned to bring ab-out conditions in which r~ al wages can begin
to rise ag,-in-in t-he Shortest possible ' Lime. Polic~ ies
. dosignd to increase wage and salary costs in the short termn
run directly,. counter to the -interests of the: great majority
of loage, and salary earners and reveal a contemptuous disregard
of the plight of the unemployed.
i RLnow-I-do not.-have to cemphasise to the M~ embers of thi s
chamber the. great importance of communicating and d-iseulssing
the facts about the frete tuiterprise system directly with
employee-s.. Part of the responsibility for this present crisis
rests with those of us who have done too little in the past
to get the message across that thc free enterprise system
is eas-ily-the best systeii for every Australian.
Not only dues it provide ch~ oice of jobs, of industry, of employe r,
of product and, service, through the profit and loss system
it provides the consumer with more influence over the whole
pattern of production than any other system.
It is an important tL-ask not only. for Goverment, but also for
managemirent, to commnuncate * the facts about bow the economic . system
ioriks. A managem-ent concerned to discuss these matters with
its own employees as many now are is wvorking not only ill its
own interests, but in the interests of its eployees and the commun
at large.
The fight against inflation would be greatly helped if a13
cornpanics made a practice of discussing with their employees
bow-inflation affects the business,, the ctxomp~ aniy. s-trading record
and the prospects. and conditions for new investment. and
consequently -more employment.
ID. the end, unions, companies an d employees find their
justification in the service they provide to others.
They have, no absolute right to exist apart . from this.
It is inevitable and proper that in this age ofgown
intordependcncc thero should he a conce~ rn with the wider social
vespns'iilitics of both trade unionis and businesses. Sca
responsibility dous not only imply that busine-rises should sclj
to Eu; Ol)' good* s an-1 . erv:( cperso fitably and efficiently,
and thnat trade unions shoul-d Se~ to imaprove to the best of the; ijr
ability, the waa % odtin of hermebs-
' 3social respoiisibility" also ipesthat these
ac. ti vities will be unidertaken with. ful1l recgarcl to t11eir
efi-ects on other members Of the organIsation and the
puul ic. beyond..
The age when aniy action , qas justifie-d if it : led to a prof it
has long. since gone if it cvcr existed. The age
wh'en anything was justifiel Iif it led to another victory
focir thbe inionshould also have gone.
People rightly-det . iand now that both business anid unions
rc~ gnsethey are part of a COM1u1nity and that they must be
concerned with + the impact of their actions on other3U People in.
t h at commu ni ty-.
Mr Whitlam has recently indicated that be~ b Ieeves so cially
Ccncrned Unionism must inevitably use the weapop of the
political strile. This is a fundamental misundestriding of
the social responsibilities of trade undins. Treis nothi-ng
socially resppnasible about using. irtinidatiop in a vain ef fort
to impose the will. of a few mili tant union leaders on the
elected democratic institutions of the country. There is
nothing socially responsible about stri~ es whiuh cause direct
loss . to. ofteIa-unwilling. mem; bers and simply ensure that unernploy,.
will. stay at. high. leve-is.
Social responsibility consists inparticipating in the demnocra-.
debateoon policy along, with all other people -not trying to
xMp) ose -ones.+ wll in an undemocratic fashion.
-pr fo -oa c
Suppr fo oiIa strikes+ would appear+ to indi cate a l ack
regard'for democraltic principlcs, and processes f or Par ljam C-V
-~ whichAs the -proper forum for democratic decisions+.
W& cannot, dont and will not-. have decisionas sdintetr
Earlier leaders of the+ Lab~ or Party like Chificy took a very
dif ferent attitude to the responsibIli ties of the trade union
m~ ovement. We are all aware that some powerful unions zare
presently controlled by officials who do not support the
ddeismruopcrtaiotinc , sydsetleamy, reac-nod vewrhyo, s e anodab kjeecetpiv e4. n eitm pilso ymtoe nct. a uhsigeh+.
1 believe that-ivcreas~ ingly ijembers of trade unions are becom. ning
* disillusioned with the irresponsibility-of ai few officials.
The legiSlation. we have in-troduced to requirt stecret postal
hallots in' all union elections has been operatizg. sinDcv August.
It places a powerful weapon in tbhe hands of union members who
be-come รต convinced that the actions of their'union are not in
accord _ Wjth their own real interests.
A discussion ~ ofthe social responsibilities of-unions and
busa-nuss inevi1tably lcads to a consideration of what both these
important setctors oF the tcom; munity can do For disadvajitaged
minorities migrafit workers, youth, working mothers. aboriginals. f. / Ci
Government of course has very significant responsibi-lities
in this area. Policy rD-le of the Depa-rtumeftt of smmgna~ o
EFtlinic. Affairs is being strengthened. A number of measu-res
have rece-ntly been introduced to hellp unnployed school lea-Vers,
There is an active 1o1fef1' r stin an my own departwent.
Vie have. taken action to ensure that aid to aboxigi-nals takes
the~ most. ef fective f orn. B3ut as in othe-r matters xwhut
Government can achieve by itself is strictly ' Limited.
be done-by uin-Ions anid managem-ent who have Atbe will to help.
In the case of migrants, FOr examPle, Only a few employars
provide multi-lingual. iinformation on award' provisions,
workng . conditions or workRcrs comnnensatio-n. Union journals
are almost invariably published in English, despite the
igh concentration of iion-Englis,; h:--speaking migrants in
certain industries. The lack of i; julti-lingual safety signs... could
wcll contribute to indvstrial aciet among migr ant worlr
- I por ant tat. tierei I~ S -f
s~ hsii~ rit ahe Plan level among. middle La1gmn
and -f oremen, -of.-the roblemis faced by mnigrant workers.
Some large -manufacturing organisations have set up communication
* netwo-ks with key bi-lingual personnel drawn from itt mpjor
c thnic. groups. represcultod on site.-
Linf ortunately -the6 trade imion movement aS a ' whole has been slow to
. recogise the ' needs and problems of particularly, -jj
nion-English speaking migrant membership. U nti11.-th e u'nia on
movement* does mnore to close the iif'ormation gyap between
themselves and their migranit members they Can hardly claim to'
be adequately urepresenting those nmembers. When we can see
that appreciably more an-Ion office holders and more delegates
* at union conferences are migrants, then we will be able to say
tbat.. trade unions-have a greater claim ' to represent their total
membership. Wage issues are no~ t the only important issues facing the union
Move-Ment. There are nany other matters which affect the working
lives of members. Inadequate cmphasas has so far been given to
improving consultation between management and employees and
to the special-problems of mi-nority groups.
it. -IsIn ila tters;-uc as-thi. that real' meaning can be 8given
to the concept-of " social responsiLbility".
" Social responsibility" refers principally to the concern we are
prepared to show for those affected by our actiops, and a
willingness to take realistic and practical steps to give
meaning to. that concern.
* Unfottunately in recent years recognition of socital -responsiil-ity
bas come to be equated in the min&-, of some with a preparedness
to promise more and more Government spunding. A wildlinkneto
make vast promise--is not a mark of social -responsibility.
7, I I 1 -1
6.
cLta-i irresponsIbi lit), of the worst kindl. It can lead
a s we. have sccn to d.-vastat. o'a, inflation. which destroys
saiA n g s and depresses tu condition especially of the weaker
sections. of . the co-Mmunity. It can laad to massive unempl-. yoient
which. beca rs hardeUst on the less we_:-l organised or disadvantaged
minorities. Because, it must bce financcd by hAigher ' taxes it
ic:. u-ally arocde-s peoph-' s cafpmacity . to mneet tbeir own needs
in tlie way they thiTnk best.
It i S t ijAe wye _ t rete Wj4,1 sou ~ rt n poli ticians WhoQ promiSe
to solve all-our problems -to 4-elp the disadvantaged
by S2iMp Y. sDcnd~ ng more: who -treat Government revenue as
IfT it , were manna. f$ rom he~ aven rathe~ r than the product of
labour ald. eff. Ort
1hr Whitlam is no . w proposing to spend an. extra billion* dollars
to gatz: thle economy ' Tight. 1i-do -Pot thin' tbijs is aLabor~ Party
vicly,* but it is , Nr Whitlam's view-
L et LLs.-f a ce -reality.. Higher taxation, exparin-qg: bureaucracy
growing+ regulation and centralisation. of pwer is nott
pilth to. ca' batter. life it is the very .6pposite of+ the
direction in which we should be-going. Australians are rioreequal
-btecr cducated better informed than ever., befdre.
Austlralia.. Js a co-untry better suited -than any other to the
intelligent,-socially responsible exercise of freedomn aud
individuoal, choice. -The ni a determiniant of-Ph Rin ofAstaI
that. devel-ops over the next few years will be our own effortsas
indilvi duals:, work ing together.
we cannot evade our responsibiliti';) r by. trying to leave it all t:
Gover'ment. In the end our standard of' living, as well as our capacity to
-introduce new progran-mes of _ Governinent Spending, dtependls
on how much weprodue on how hard and how-well we are
prepare-d to work.
Miaking. Australia a more compassionate, more sociallty responsible
society is not accomplished bymassive programmes of Government.
spendinq'. It is accompltished by. treating each other,-as
individuals employees, employers, cons ers'prducr
-with mutual respect.
AWe ' are all Tesponsible for what happens t o Australia. i. a
confident that it -as within our power to make Australia a+
country -th at ca-n he an exaMTple to the World.