PRIME MINISTER
FOR PRESS 20 APRIL 1977
THE PRIME MINISTER SENT THE FOLLOWING TELEX TO PREMIERS TODAY:
MY DEAR PREMIER, YOU WILL RECALL THAT IN OUR AGREEMENT ON PRICES AND
INCOMES RESTRAINT ALL HEADS OF GOVERNMENTS WERE TO APPROACH
EM*.. 3OYER AND PROFESSIONAL ORGANISATIONS AND PUT TO THEM THE
PROPOSAL THAT THEIR MEMBERSHIP SHOULD VOLUNTARILY COMMIT
TH: 3IMSELVES TO A PAUSE FOR A PERIOD OF THREE MONTHS FROM INCREASES
IN THE PRICES OF THEIR GOODS AND SERVICES. AT THE SAME TIME
AL:, HEADS OF GOVERNMENTS WERE TO MAKE AN APPROACH TO T HE
ACTU AND OTHER EMPLOYEE ORGANISATIONS TO SEEK A VOLUNTARY
COM4MITMENT TO A THREE MONTHS PAUSE FROM WAGE INCREASES. AS YOU
KNOW, I SENT A MESSAGE TO OVER 200 MAJOR NATIONAL EMPLOYER,
EMPLOYEE, PROFESSIONAL AND COMMUNITY ORGANISATIONS SEEKING THEIR
COI'll'ITMENT. I HAVE ALREADY SENT YOU A LIST OF THE TWENTY FIVE
I' 4JOR NATIONAL EMPLOYER ORGANISATIONS WHOSE REPRESENTATIVES MET
WITH ME AND RELEVANT MINISTERS AND INDICATED THEIR WILLINGNESS
TO SUPPORT THE INITIATIVE. IN ADDITION, I HAVE RECEIVED MESSAGES
OF SUPPORT FROM APPROXIMATELY SEVENTY EMPLOYER ORGANISATIONS AND
MAJOR NATIONAL COMPANIES. ON THE QUESTION OF PROFESSIONAL FEES
THE AUSTRALIAN MEDICAL ASSOCIATION HAS EFFECTIVELY ADOPTED AN
8 MONTH FREEZE ON DOCTORS' FEES.
I UNDERSTAND THAT STATES HAVE ALSO RECEIVED A POSITIVE
RES; PONSE FROM STATE EMPLOYER ORGANISATIONS. THUS, AS THE
PRE3SIDENT OF THE CONCILIATION AND ARBITRATION COMMISSI[ ON SAID
IN THE DECISION YESTERDAY, EMPLOYERS GENERALLY HAVE AG; REED ABOUT
PRIE S.
TODAY I MET WITH REPRESENTATIVES OF PEAK COUNCILS
IN AN ENDEAVOUR TO SEEK THEIR AGREEMENT TO A RECIPROCAL WAGES
PAUSE. IN SUNTIARY, I MUST REPORT THAT THESE REPRESENTATIVES
INDICATED THEIR UNWILLINGNESS TO PROCEED WITHOUT A NATIONAL
CONFERENCE AND A SUBSEQUENT CONFERENCE OF TRADE UNIONSTHE
PEAK COUNCILS ASKED ME TO MEET WITH PREMIERS
AND SEEK THEIR AGREEMENT TO A NATIONAL CONFERENCE ON THIS
MATTER. I INDICATED THAT I WAS PREPARED TO DO SO IF PEAK
COUNCIL REPRESENTATIVES WERE PREPARED TO SUPPORT IN PRINCIPLE
THE OBJECTIVES OF THE HEADS OFGGVERNMENT AGREEMENT EVEN
IF ONLY ON A PERSONAL-BASIS. THIS WAS NO MORE THAN WAS
INDICATED BY ONE PEAK COUNCIL IN YESTERDAY'S PROCEEDINGS
IN THE COMMISSION. OTHER PEAK COUNCIL REPRESENTATIVES WERE
NOT PREPARED TO SUPPORT EVEN IN PRINCIPLE AND FOR THIS
REASON I DECIDED THAT SUCH A NATIONAL CONFERENCE WOULD BE
FUTILE. I BELIEVE THAT THERE IS SUBSTANTIAL COMMUNITY SUPPORT
FOR CONCEPT OF PRICES AuND INCONMES PAUSE. IN VIEW OF
UNWILLINGNESS AND INABILITY OF PEAK EMPLOYEE COUNCILS TO
AGREE ON WAGES PAUSE WOULD YOU BE PREPARED TO JOIN IN AN
APPROACH TO THE CONCILIATION AND ARBITRATION COMMISSION TO
USE ITS GOOD OFFICES TO ASSIST IN ACHIEVING THE PRICES
AND INCOMES PAUSE AS ENVISAGED BY-OUR AGREEMENT.
I SHOULD BE GRATEFUL FOR YOUR URGENT REACTION.
YOURS SINCERELY,
M ALCOLM FRASER
PRICES AND Ii" COMES RESTRAINT
The Heads of the Commonwealth and all State Governments,
meeting ' in Premiers' Conference in Canberra today,
unanimously called for a three month halt in.. price and
wage increases. They agreed that such restraint was
urgently needed if Astralia is to overcome its
current econonic nroblems.
It was agreed that all Heads of Governments will approach
employer and professional organisations and put to them
the proposal that their membership should voluntarily
commit themselves to a pause for a period of 3 months
from increases in the prices of their goods and services.
At the same time, all Heads of Governments will be making an
approach to the A. C. T. U. and other employee organisations
to seek a voluntary commitment to a 3 months pause from
wage increases.
Governments would not expect either the business organisations
or the union organisations to agree to such voluntary restraint
arrangements without agreement by the others.
Immediately following agreement to the proposal for a
voluntary general pause from increases in prices and incomes
approaches would be made -to the Arbitration Commission and the
Prices Justification Tribunal for the implementation of the
general pause.
Governments would also use their influence and the.. powers
available to them towards achieving a successful outcome.
Governments will commit themselves to not increasing their
own charges during the period of the pause. Local Government
will be expected to9Tikewise.
k1eI All Heads of Governments coirmiit themselves to work for this
voluntary pause. Upon its achievement a further conference
of H ads of Government will be held to consider what further
steps Should be taken.
The Heads of Governments called on all members of the
Australian co-m-unity to give full support to this vital
endeavour to help overcome inflation.
J. M. Fraser
Neville Wran
R. J. Hamer
J. Bjelke-Petersen
D. A. Duns-tan
Sir Charles Court
W. A. Neilson Prime Minister
Premierof New South Wales
Premier of Victoria
Premier of Queensland
Premier of South Australia
Premier of Western Australia
Premierof Tasmania
Canberra13 April 1977