AUST A
PRIME MINISTER
FOR MEDIA SUNDAY, 19 SEPTEMBER 1982
ELECTORATE TALK
In the last week a number of things have happened which will.
give Australians some encouragement that we can overcome
our economic difficulties, And prepare for the world economic
recovery when finally that comes.
Last Friday the Conciliation and , Ar]; i. tr-ation Commission
announced its recommendation that nearly all Commnonweal~ th
public servants be granted pay increases of between about
6% and 63 While the Government would have preferred the
increase to have been smaller the increases awarded are
about half of the increase sought by the unions. The fact
that the Arbitration Commission took its decision in the--ight
of current economic difficulties and that it has recogn. sed
the need for wage restraint is most encouraging. It has
also recognised the need for the public sector to give a lead
in securing that restraint.
There is a growing recognition not just in the Arbitration
Commission but in the community as a whole that if we pay
ourselves too much as we did last year, then the Australian
economy will become less competitive, profits waill fall and
our level of unemployment will rise still further. That growing
recognition was apparent in earlier pay case decisions.. The
Remuneration Tribunal recommended a pay increase for
PDarliamentarians and senior public servants of a recommenrdation
wVhich the Government accepted, and the Academic Salaries
Tribunal has recommended a pay increase for academics of 7%.
In Tasmania, a State particularly hard hit by the economic
downturn, the Premier. has called for a public service
pay freeze, while in Western Australian, South Australia and
the Northern Territory, public servants have got increases
of around In New South Wales Mr Wran last month, rejected
a recommendation for a pay increase of 14.3% for his senior
public servants. In doing this Mr Wran said: . it is essential
that Governments exhort and practice wage restraint. The
New South Wales Government takes the view that in the present
exceptional economic climate a halt must be called to passing
on cost of living increases as a full percentage of total wages."
I completely agree with that statement and it shows that many
membersof the Australian Labor Party, as well as other in the
community, know that to revert to full wage indexa ' tion as the
Labor Party's platform on industrial relations demands would
only undermine our economy at this difficult time. / 2
These recent pay settlements and in particular, Friday's
recommendation on Commonwealth Public Servants' pay, show
that most Australian governments, especially the Commonwealth
Government, are setting an important example to the rest of
the community. A number of leading companies have responded
to the Government's call for restraint by either freezing
salaries or granting very small salary increases to their
executive staffs.
Later this year there will be a number of important pay
negotiations involving notably the metal workers, transport
workers and the storemen and packers. Last year these unions
got enormous pay increases and in. some cases shorter hours
which not only undermined the competitiveness of those
industries and therefore employment levels, but also set a
benchmark which other unions were determined to equal.
This year I am confident that last year's mistakes will be
recognised and that unions will accept -the example set
by the Commonwealth Government and. most State Governments in
recent pay settlements. I am also confident that they will
recognise the contribution the Commonwealth Government has
made to helping all Australians at this difficult time through
the recent Budget which will give considerable tax relief
and increased benefits to all Australians.
The strongest unions must realise that by acting selfishly
without regard for those in the community who have little or
no negotiating strength, people like pensioners and families with
children to bring up, will be seriously damaged by excessive
wage settlements. For its part, the Government will show
absolute resolve to do all it possibly can to ensure that future
wage settlements are not out of line with the pattern of settlements
which have been emerging in recent months.
Another positive sign in the economy in recent days has been
the heavy fall in interest rates on Commonwealth Treasury
bonds. These rates have fallen by about 14%. That decline is
a reflection of lower interest rates overseas, in particular
in the United States. Recent falls inanumber of private sector
rates here in Australia and a growing confidence in the Australian
economy as a result of the recent Budget.
Although it is too early to conclude with complete confidence
that overseas interest rates will contine to move downwards
thereby bringing our own rates down further, this latest development
is most welcome and will help further to rebuild confidence in
our economy.
These recent developments on wages and on interest~ rates are
early signs that things will improve for all Australiians if
international economic trends improve and if we continue to work
together to restrain unrealistic wage settlements and are
determined together to build Australia up.
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