EMBARGO: 5.30PM
FOR MEDIA THURSDAY, 12 AUGUST 1982
The Prime Minister today released the attached text of
a letter which he and other senior Ministers are
sending to business and other community leaders, including
State Premiers. Li 1 9 e-
,3AU a
PRIME MINISTER CANBERRA
" I am writing to draw your attention to the very significant
recommendations of the Remuneration Tribunal released by the
Treasurer and the Acting Prime 1% linister on August 8 and the
Governmesnt's decision, announced on August 10, to accept them.
The Tribunal had been considering over recent weeks the
level of salaries and allowances to apply to Ministers,
other members of Parliament, Judges, senior Commonwealth
public servants and other statutory officeholders.
The Tribunal recommended salary increases of about seven
per cent, with the increase for members of Parliament being
deferred for three months.
The Tribunal points to significantly larger increases which
have been received by some other groups in the community and
states that it has recommended a lesser rate of increase than
it would have adopted were economic circumstances not as they
are. The recommendations, and the Government's decision to
accept them, set a very clear example of wage restraint,
applying as it does to the most senior people in the Commonwealth
public sector.
I believe that the Tribunal's conclusions have given due regard
to the Government's submissions made in writing by myself and,
reflecting the Government's serious concern, by the Treasurer
in apersonal appearance before the Tribunal.
The Commonwealth argued that in the exceptional economic
circumstances which currently exist it was essential to set
a lead to the community generally and that accordingly any
wage increases should be substantially below the rate of
inflation. In support of this position, the Commonwealth pointed to
widespread concerns about the threat that excessive wage
increases pose for the recovery of the Australian economy and
hence job opportunities. -The submissions were in accord with
the spirit of the recent Tripartite discussions between the
Commonwealth, the ACTU and the CAI that Australia is facing a
very serious economic situation and that, while emphases might
differ, there is general agreement about a link between
excessive wage increases and loss of jobs. / 2
-2-
The Tribunal noted that it should, as the Government asked,
take into account the state of the economy and, within proper
limits, the effects which its decisions would have upon it.
The Tribunal was persuaded that exceptional circumstances
exist and that its recommendations could have the effects
referred to by myself and the Treasurer.
With the Remuneration Tribunal having recognised the need
for wage restraint and having set the example, I believe
the onus is on all leading Australians to give support. If
all major Australian companies follow the Tribunal's example
of restraint at the senior-levels of their own organisations,
this will set a tone wvhich . will help us in achievring -wage
restraintC throughout the wvorkforce which is so vital,
particularly in the cause of saving jobs.
For its part, consistent with the approach it took before the
Remuneration Tribunal, the Commonwealth also made strong
submissions recently to the Academic Salaries Tribunal on
the need for restraint. The Academic Salaries Tribunal has
now presented its findings, recommending an increase of
seven per cent. I believe that these findings demonstrate
recognition by the Tribunal of the pressing need for wage
restraint in all sectors, and present a further and very
welcome example to others, following the lead set by the
Remuneration Tribunal.
The Commonwealth is also arguing strongly for restraint
before a Full Bench of the Conciliation and Arbitration
Commission in the current case involving Commonwealth public
servants in the clerical and administrative areas.
The Government welcomes the initiatives taken by several major
corporations in the private sector to give a lead in wage
restraint in their own sphere. Indeed, in some cases companies
have decided that in their present circumstances a complete
freeze on executive salaries is appropriate. The Government
hopes that the examples set will be widely followed.
Moreover, since restraint at all levels is vital to improving
the competitiveness of all Australian companies, it is also
to be hoped that the message of what is being achieved and the
reasons why restraint is necessary will be conveyed to all
company employees, and their co-operation and participation
sought. This message might be presented on the basis of
national data, and the figures relating to the particular
enterprise. Thus I seek your personal support in pursuit of the vital
national objective of wage restraint. The stakes for the
Australian economy and the Australian community are high.
With a responsible approach we now have an opportunity to
improve substantially our economic prospects.."
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