CHECK AGAINST DELI\ p I
DELEGATES, THE PARTNERSHIP
AND THE AUSTRALI
BEGINNINGS OF OL
YEARS WE HAVE WO
THE REFORMS THAT
BEEN MADE WOULD
TOGETHER AT EVER
UNDERPINNED EACH
AUSTRALIANS A FA E RYEMBARGOED UNTIL DELIVERY
SPEECH BY THE PRIME MINISTER
ACTU CONGRESS MELBOURNE
12 SEPTEMBER 1983
FORGED BETWEEN THE AUSTRALIAN LABOR PARTY
AN TRADE UNION MOVEMENT DATES BACK TO THE
IR POLITICAL SYSTEM, TO-GETHER THROUGTH THE
RKED FOR A BETTER AUSTRALIA,
HAVE BEEN ACHIEVED, THE PROGRESS THAT HAS
HAVE BEEN IMPOSSIBLE IF WE HAD NOT WORKED
Y OPPORTUNITY. WE HAVE REINFORCED AND
OTHER. AS A RESULT WE HAVE SECURED FOR ALL
IRER, MORE JUST, MORE EQUITABLE SOCIETY,
THIS PARTNERSHIP MUST NOT BE TAKENI FOR GRANTED. IT IS
SOMETH ING WE MUST WORK AT AND BU ILD UPON CONT INUALLY,
THIS IS ESPECIALLY TRUE TODAY. THE LABOR GOVERNMENT IS
DEDICATED TO SECURING WITHIN THE CONTEXT OF RENEWED ECONOMIC
GROWTH A RIGHTFUL SHARE FOR THE WORKING MEN AND WOMEN OF
AUSTRALIA OF THAT GROWTH, ONLY A HEALTHY AUSTRALIAN ECONOMY
WILL PROVIDE EMPLOYMENT AND GOOD STANDARDS OF LIVING FOR
ALL ITS PEOPLE, AND A PROPER DISTRIBUTION OF THE FRUITS OF
GROWTH IN THIS GREAT NATION. THE COOPERATION AND SUPPORT
OF THE TRADE UNION MOVEMEN T IS ESSENTIAL IF THIS IS TO
BE ACHIEVED, i4 -I n
IERY .1,33> AU S I I A LA-
2
IN SIX MONTHS MY GOVERNMENT
GETTING AUSTRALIA BACK TO WO
MAKING AUSTRALIA A MORE EQUI
TO BRING AUSTRALIANS TOGETHEI
DIVISION AND A SHARP ECONOMI
WHEN WE CAME TO OFFICE YHE E
RECESSION IN FIFTY YEARS, U
ONE QUARTER OF A MILLION PEO
AT 11,5% WAS DOUBLE THE OECD
UNACCEPTABLY HIGH. THE AUST
SOCIETY HAD SUFFERED FROM
COMMITMENT OF OUR PREDECESSO
APPROACH, THE CHALLENGE FACING THE NAT
AUSTRALIA'S ECONOMIC PROBLEM
TO RAPID SOLUTION. TO ARRES
THE GENERATION OF HIGH GROWT
ACHIEVE SUCH GROWTH RATES RE
THE CHALLENGE IN A COOPERATI
ACHIEVEMENT OF THE NECESSARY
EMPLOYMENT REQUIRES AS AN AB
PRICES AND INCOMES POLICY,
NOT BE FRITTERED AWAY IN ANO
SPIRAL. THIS IS WHAT THE PR
ABOUT. HAS LAID THE FOUNDATION FOR
RK, WE HAVE BEGUN THE TASK OF
TABLE SOCIETY, WE HAVE STARTED
R AGAIN AFTER SEVEN YEARS OF
C DECLINE,
CONOMY WAS FACING ITS WORST
NEMPLOYMENT HAD RISEN BY MORE THAN
PLE IN ONLY A YEAR, INFLATION
AVERAGE. INTEREST RATES WERE
RALIAN ECONOMY AND AUSTRALIAN
THE BLINKERED AND INSENSITIVE
RS TO A " FIGHT INFLATION FIRST"
ION THEN AND NOW IS FORMIDABLE,
S ARE DEEP SEATED AND NOT AMENABLE
T AND REVERSE THE DECLINE DEMANDS
H RATE FOR LONG PERIODS, TO
QUIRES THIS NATION TO RESPOND TO
VE'ANDIINNOVATIVE MANNER.
RATES OF GROWTH IN ACTIVITY AND
SOLUTE, PREREQUISITE AN EFFECTIVE
THE BENEFITS OF RECOVERY MUST
THER ROUND OF THE WAGES PRICES
ICES AND INCOMES ACCORD IS ALL
3.
UNLESS WE ARE SUCCESSFUL IN FORGING A LONG TERM COMMITMENT
BY ALL TO SUCH AN APPROACH THERE IS LITTLE CHANCE WE WILL BE
ABLE TO ACHIEVE SUSTAINED RECOVERY, IMPROVE LIVING STANDARDS
OR MAKE ANY REAL PROGRESS IN CUTTING INTO THE UNACCEPTABLY
LONG QUEUES OF THE UNEMPLOYED,
MY GOVERNMENT IS I BELIE VE ON THE RIGHT TRACK, LAST WEEK'S
WELCOME DECISION BY THE SAVINGS BANKS TO CUT HOME LOAN
INTEREST RATES WAS A CLEAR SIGN THAT THE MARKET HAS CONFIDENCE
IN THE GOVERNMENT'/ S OVERALL ECONOMIC STRATEGY AND PARTICULARLY
THE 1983-84 BUDGET,
NHE ACCORD ON PRICES AND INCOMES BETWEEN THE AUSTRALIAN LABOR
PARTY AND THE TRADE UNION MOVEMENT WAS AN ACHIEVEMENT OF
HISTORIC PROPORTIONS, IT OFFERED HOPE THAT WE COULD ESCAPE
THE DIVISIVE, CONFRONTATIONIST APPROACHES OF THE PAST, ITS
ACHIEVEMENT SET THE TONE OF CONSULTATION AND COOPERATION
FOR THE NEW LABOR GOVERNMENT. IT IS NOW A CRUCIAL
CORNERSTONE IN THE GOVERNMENT'IS EFFORTS TO ACHIEVE ECONOMIC
RECOVERY. THE FRASER GOVERNMENT'S TOTAL RELIANCE ON THE BLUNT
CONVENTIONAL WEAPONS OF CONTRACTIONARY FISCAL AND MONETARY
POLICY GOT US NOWHERE. THE COSTSIN TERMS OF REDUCED ACTIVITY
AND INCREASED UNEMPLOYMENT WERE INTOLERABLY HIGH.
THE NEW POLICY APPROACH NOW DEVELOPED OFFERS HOPE WHERE
PREVIOUSLY THERE WAS DESPAIR. WE AIM TO GET AUSTRALIA MOVING
AGA IN.
BY MEANS OF AN EFFECTIVE PRICES AND INCOMES POLICY IT SHOULD
NOW BE POSSIBLE TO SEE CONFLICTING INCOME CLAIMS RESOLVED AT
LOWER LEVELS OF INFLATION THAN WOULD OTHERWISE BE THE CASE.
THIS WILL PROVIDE GREATER SCOPE FOR OUR EXPANSIONARY FISCAL
POLICY AND WILL LEAD TO STRONGER GROWTH IN OUTPUT AND
EMPLOYMENT, AND ULTIMATELY TO IMPROVED LIVING STANDARDS
FOR ALL. THE OPPORTUNITY MUST NOW BE SEIZED TO IMPROVE
AUSTRALIA'IS LONG-TERM GROWTH PERFORMANCE AND TURN
OUR BACK ON THE STAGNATION THAT HAS CHARACTERISED MUCH
OF OUR ECONOMIC PERFORMANCE IN THE LAST DECADE.
THE ACCORD REPRESENTS A COMPREHENSIVE APPROACH, THE
UNDERTAKINGS EMBRACED IN IT COVER NOT ONLY PRICES, WAGES AND
NON-WAGE INCOMES BUT ALSO TAXATION AND THE " 1SOCIAL WAGE" THAT
IS., THOSE GOVERNMENT EXPENDITURES AFFECTING THE LIVING STANDARDS
OF THE PEOPLE. IT ALSO PROVIDES FOR A RANGE OF POLICIES
IN THE AREAS OF INDUSTRIAL RELATIONS LEGISLATION, HEALTH
INSURANCE, OCCUPATIONAL HEALTH AND SAFETY, SOCIAL SECURITY,
INDUSTRIAL DEVELOPMENT, EDUCATIONAND AUSTRALIAN GOVERNMENT
EMPLOYMENT ALL POLICIES MY GOVERNMENT IS NOW WORKING TO
IMPLEMENT, lHE PRINCIPLES OF FAIRNESS AND EQU~ ITY ARE FUNDAMENTAL TO
THE ACCORD. THE EQUITABLE DISTRIBUTION OF INCOME IS A BASIC
OBJECTIVE AND GUIDES THE APPROACH OF BOTH THE ACCORD
AND MY GOVERNMENT.
THE LABOR GOVERNMENT DOES NOT UNDERESTIMATE THE DIFFICULT
TASK AHEAD. IT WAS RECOGNISED IN THE ACCORD THAT THERE ARE NO
RAPID SOLUTIONS AND THAT OUR OBJECTIVE OF FULL EMPLOYMENT
CAN ONLY BE REACHED OVER TIME, WE CERTAINLY DO NOT OFFER
MIRACLE CURES. THE ACTU SUBMISSION TO THE RECENT NATIONAL
WAGE CASE WAS RIGHT IN OBSERVING THAT ' I'll. IT WAS NEVER
PERCEIVED THAT ALL THE INDIVIDUAL PROVISIONS, COMMITMENTS,
GOALS IN THE ACCORD WOULD BE ACHIEVED IN THE FIRST TERM
OF OFFICE IT IS SOMETHING THAT WILL BE GRADUALLY
IMPLEMENTED OVER YEARS) NOT MONTHS"
WE HAVE, HOWEVER) MADE CONSIDERABLE PROGRESS.
AT THE HEART OF THE ACCORD IS THE COMMITMENT TO A CENTRALISED
SYSTEM OF WAGE FIXATION WHICH WE BELIEVE IS DESIRABLE FOR
ECONOMIC) EQUITY AND INDUSTRIAL RELATIONS REASONS,
SUCCESSFUL IMPLEMENTATION OF SUCH A SYSTEM IS ESSENTIAL TO AN
IMPROVEMENT IN INDUSTRIAL RELATIONS. ONLY IN THIS MANNER
CAN BETTER WAGES AND CONDITIONS BE ACHIEVED AND SUSTAINED
INTO THE LONGER-TERM,
THE PRINCIPLES OF WAGE FIXATION BfING PURSUED BY THE
GOVERNMENT PROVIDE A BASIS UPON WMICH ALL PARTIES CAN
PARTICIPATE IN AND BENEFIT FROM THE SYSTEM, WE AIM TO ENSURE
IN CIRCUMSTANCES OF RISING PRODUCTION AND PRODUCTIVITY AN
EQUITABLE DISTRIBUTION OF INCREASED COMMUNITY WEALTH.
6.
AT THE NATIONAL WAGE CASE WE SOUGHT TO STIKE A BALANCE
BETWEENSHORT AND LONGER TERM ECONOMIC AND INDUSTRIAL RELATIONS
CONSIDERATIONS WITHIN THE FRAMEWORK OF AN EFFECTIVE PRICES
AND INCOMES POLICY. ACCORDINGLY WE SUPPORTED FULL INDEXATION
ON A SIX-MONTHLY BASIS, ON THE CONDITION THAT THERE SHOULD
BE NO EXTRA CLAIMS, IT IS THE GOVERNMENT I S FIRM VIEW THAT ANY
UNION NOT PREPARED TO GIVE A COMMITMENT TO NO EXTRA CLAIMS
SHOULD BE DENIED THE NATIONAL WAGE INCREASE. IF SUCH AN
UNDERTAKING IS GIVEN AND LATER BREACHED THIS SHOULD ALSO BE
TAKEN INTO ACCOUNT WHEN NATIONAL WAGE INCREASES ARE BEING
CONSIDERED IN RELATION TO THAT UNION,
THE GOVERNMENT HAS ARGUED THAT RATIFICATION OF SECTIONAL
SETTLEMENTS SHOULD BE REFUSED UNLESS THE COMMISSION JUDGES
THAT SPECIAL OR-EXTRAORDINARY CIRCUMSTANCES APPLY. IT IS FOR
THE COMMISSION TO RATIFY SUCH AGREEMENTS. THE GOVERNMENT
FOR ITS PART WOULD NOT SUPPORT ANY INCREASE IN ALLOWANCES
WHICH AMOUNTED TO A DISGUISED WAGE INCREASE. THE GOVERNMENT
WOULD ALSO BE CONCERNED THAT PARTICULAR ATTENTION BE PAID
TO THE POSSIBILITY OF FLOW-ONS. SUCH POSSIBILITIES MUST
AT ALL COSTS BE PREVENTED.
YOU WILL RECALL THAT IT WAS AGREED AT THE SUMMIT THAT IF
RESTRAINT IS TO BE EXERCISED THEN IT SHOULD BE EXERCISED
UNIVERSALLY AND THAT NON-WAGE INCOMES SHOULD NOT BE INCREASED
FASTER THAN MOVEMENTS IN WAGES. WHERE THERE ARE NO
AUTHORITIES DETERMINING FEES, GRO. UPS WERE TO BE ENCOURAGED
TO HAVE THEIR FEES DETERMINED ON A VOLUNTARY BASIS BY MEMBERS
OF THE CONCILIATION AND ARBITRATION COMMISSION. .71,
7,
MY GOVERNMENT HAS TAKEN A NUMBER OF STEPS TO IMPLEMENT THAT
APPROACH. I HAVE WRITTEN TO MAJOR COMPANIES ASKING THEM TO
EXERCISE RESTRAINT IN SETTING DIVIDENDS AND OTHER NON-WAGE
INCOMES SUCH AS MANAGERIAL SALARIES AND DIRECTORS'I FEES.
THE MINISTER FOR EMPLOYMENT AND INDUSTRIAL RELATIONS HAS SOUGHT
THE SUPPORT OF PROFESSIONAL ASSOCIATIONS FOR INCOME RESTRAINT
AND HAS ENCOURAGED THEM TO USE MEMBERS OF THE CONCILIATION
AND ARBITRATION COMMISSION TO DETERMINE FEES. THE RESPONSE
TO THESE APPEALS HAS BEEN ENCOURAGING. ALMOST ALL OF THOSE
GROUPS HAVE EXPRESSED STRONG SUPPORT FOR THE GOVERNMENT'IS
CALL FOR RESTRAINT.
AT THE NATIONAL ECONOMIC SUMMIT WE WERE ENJOINED TO ESTABLISH
EPAC AND TO DEVISE MACHINERY FOR PRICE SURVEILLANCE. EPAC
IS NOW IN PLACE AND WE EXPECT SOON TO ESTABLISH A PRICES
SURVEILLANCE AUTHORITY TO MONITOR AND ASSESS THE VALIDITY
OR OTHERWISE OF PRICE INCREASES BY SELECTED CORPORATIONS
AND PUBLIC AUTHORITIES, DRAFT LEGISLATION HAS BEEN PREPARED
AND IS TO BE CONSIDERED BY A WORKING PARTY SET UP AFTER THE
SUMMIT. OUR INTENTION IS TO INTRODUCE THIS LEGISLATION INTO
THE PARLIAMENT DURING THE CURRENT FITTINGS. WITH SIMILAR
AIMS IN MIND THE GOVERNMENT IS ALSO CONSIDERING STRENGTHENING
TRADE PRACTICES LEGISLATION TO ENSHRE THAT THERE IS MORE
EFFECTIVE COMPETITION AND LESS OPPORTUNITY FOR ANTICOMPETITIVE
ARRANGEMENTS,
I
YOU ALL APPRECIATE THAT MAINTENANCE OF, OR IMPROVEMENT IN,
LIVING STANDARDS MAY BE SECURED THROUGH PROCESSES OTHER
THAN BY MONEY WAGE INCREASES. IN TAKING OUR DECISIONS ON
THE ECONOMIC MEASURES ANNOUNCED IN MAY, AND MORE RECENTLY
IN THE BUDGET, MY GOVERNMENT SET ABOUT A GENUINE, FUNDAMENTAL
RE-ORDERING OF PRIORITIES, FAIRNESS AND EQUITY WERE
GUIDING, CENTRAL CONSIDERATIONS.
FEATURES OF OUR APPROACH SOME OF WHICH WE HAVE IMPLEMENTED
DIRECTLY AND SOME OF WHICH WE HAVE PROGRESSED IN CO-OPERATION
WITH THE STATES HAVE BEEN:
THE COMMUNITY EMPLOYMENT PROC-RAM, INVOLVING VERY
SUBSTANTIAL INCREASES IN SPENDING ON JOB CREATION;
ALTOGETHER WE WILL BE SPENDING $ 958 MILLION ON
EMPLOYMENT AND TRAINING PROGRAMS IN 1983-84 AN
INCREASE OF 80 PER CENT ON 1982-83 EXPENDITURE.
IN TOTAL WE EXPECT EMPLOYMENT TO GROW BY ABOUT
YO, 000 OVER THE COURSE OF 1983-84;
THE REPLACEMENT OF THE SYETF BY A MORE EFFECTIVE
JOB CREATION AND TRAINING PROGRAM FOR YOUNG PEOPLE
IN THE PRIVATE SECTOR;
THE INTRODUCTION OF THE NEW FIRST HOME OWNERS SCHEME
TO ASSIST PEOPLE ON LOW TO MODERATE INCOME INTO
HOME OWNERSHIP;.
MEASURES TO INCREASE_) SIGNIFICANTLY THE AVAILABILITY
OF LOW COST RENTAL ACCOMMODATION; I 119/ 1
TME DICARE, WHICH WILL MEET THE NEED SET OUT IN THE
ACCORD FOR A SIMPLE, UNIVERSAL AND EQUITABLY FUNDED
SCHEME; INCREASED SPENDING ON ASSISTANCE TO THOSE MOST SEVERELY
AFFECTED BY RECESSION, NOTABLY THE UNEMPLOYED AND
PENSIONERS WITH CHILDREN;
SPECIAL STEPS TAKEN AT THE PREMIERS I CONFERENCE TO
ASSIST THE STATES AT A TIME OF REVENUE DIFFICULTIES
THEREBY REDUCING PRESSURE ON THEM TO RAISE CHARGES
AND TAXES WITHIN THEIR AREAS OF RESPONSIBILITY,
WHEN WE REDUCED OUTLAYS OR ASSISTANCE THIS WAS AT THE EXPENSE
OF THE RELATIVELY BETTER OFF PEOPLE IN THE COMMUNITY AT
THE EXPENSE OF THOSE WHO COULD AFFORD IT. THE INTRODUCTION
OF AN INCOME AND ASSETS TEST ON PENSION ENTITLEMENTS., INCOME
TESTING ON OVER 70S AGE PENSIONS, TAXATION OF LUMP-SUM
SUPERANNUATION PAYMENTS AND THE TVRMINATION OF THE HOUSING
INTEREST REBATE SYSTEM REFLECT THIS APPROACH,
IWANT TO MAKE PARTICULAR REFERENCE TO THE MATTER OF TAXATION
OF LUMP-SUM SUPERANNUATION PAYMENTS. THE MEASURES PROPOSED
BY THE GOVERNMENT IN ITS 19 MAY ECONOMIC STATEMENT AIMED TO
ADDRESS A SITUATION IN WHICH $ 2 BILLION OR SO OF ASSISTANCE
FOR OCCUPATIONAL SUPERANNUATION WAS GOING DISPROPORTIONATELY
TO PEOPLE WHO WERE BETTER OFF AMONGST MEMBERS OF THE
WORK FORCE, 4D .10/ 1
IT IS TRUE THAT MANY ORDINARY WORKERS ARE AFFECTED TO SOME
EXTENT BY THE SUPERANNUATION CHANGES. BUT A LARGE PART OF THE
WORKFORCE IS NOT, EXCEPT THROUGH THE INCREASED CAPACITY THAT
THE REFORMS WILL PROVIDE FOR THE GOVERNMENT TO ASSIST THE
AUSTRALIAN COMMUNITY AS A WHOLE, FOR THOSE WHO ARE AFFECTED,
SUPERANNUATION WILL CONTINUE TO RECEIVE HIGHLY FAVOURABLE
TAXATION TREATMENT THROUGH THE ABSENCE OF TAXATION ON
SUPERANNUATION FUNDS AND THE TAXATION DEDUCTION FOR EMPLOYERS
CONTRIBUTIONS THAT IS NOT MATCHED BY IMMEDIATE TAXATION
IN THE HANDS OF THEIR BENEFICIARIES. FOLLOWING THE
MODIFICATIONS ANNOUNCED BEFORE THE BUDGET, AND AFTER
DISCUSSIONS WITH THE UNIONS, THE SMALLER LUMP SUMS WHICH ARE
MOST IMPORTANT FOR GENUINE RETIREES WHO HAVE BEEN ON
RELATIVELY LOW INCOMES WILL BE TAXED ONLY AT A LOW RATE,
MOREOVERi THE REFORM IS A GRADUAL ONE, AND, ESPECIALLY WHEN
THE EXEMPTION OF EMPLOYEES'I CONTRIBUTIONS IS TAKEN INTO
ACCOUNT, IT WILL BE MANY YEARS BEFORE MANY OTHER THAN THE
MOST PRIVILEGED WORKERS WILL HAVE THEIR LUMP SUMS TAXED
AT MORE THAN 15 PER CENT.-
YOU WOULD ALL APPRECIATE THAT THE TECHNICALITIES INVOLVED IN
IMPLEMENTING A MOVE OF THIS KIND WERE COMPLEX, RECOGNISING
THIS THE GOVERNMENT UNDERtOOK CONSVULTATIONS WITH ALL INTERFSTED
PARTIES, INCLUDING THE ACTU, AIMED AT ADDRESSING REASONABLE
CONCERNS EXPRESSED BY SOME GROUPS, THE RESULTANT CHANGES
ACHIEVED SUBSTANTIAL IMPROVEMENT IN THE FAIRNESS OF THE
SYSTEM WITHOUT COMPROMISING THE GQVERNMENT'S OVERRIDING
OBJECTIVE. ,. 11
THE METHOD BY WHICH THIS AGREEMENT WAS ACHIEVED WAS
INDICATIVE OF THE APPROACH OF MY GOVERNMENT. WE ARE PREPARED
TO TAKE ON BOARD REASONABLE, WELL-CONSIDERED SUGCESTIONS
FOR IMPROVED ADMINISTRATION OF OUR POLICIES. IN RETURN,
AND LET ME BE FRANK ABOUT THIS, WE EXPECT ADHERENCE TO
AGREEMENTS ONCE THEY HAVE BEEN STRUCK. PROGRESSIVE WHITTLINCAWAY
AT THE MARGINS OF OOLICY IS UNACCEPTABLE, NO GOVERNMENT
CAN OPERATE EFFECTIVELY IF IT IS NOT ABLE TO HAVE DECISIONS
ONCE TAKEN STICK. CONCILIATION AND COMPROMISE IS NOT A
RECIPE FOR WEAKNESS. IT IS RATHER THE APPROACH OF AN
OPEN BUT RESPONSIBLE GOVERNMENT.
ANOTHER ELEMENT IN THE GOVERNMENT'S THINKING ABOUT LUMP
SUM SUPERANNUATION TAXATION WAS THAT THE THEN EXISTING TAX
PROVISIONS FACILITATED TAX AVOIDANCE ARRANGEMENTS UNDER WHICH
AN EMPLOYEE'IS PAY COULD BE DEFERRED SO AS TO TAKE IN A LUMP
SUM TERMINATION PAYMENT AT THE END OF HIS OR HER EMPLOYMENT
IN A PARTICULAR JOB. CONSIDERATIONS OF EQUITY AND FAIRNESS
MAKE IT IMPERATIVE THAT WE CRACK DbWN ON SUCH PROCEDURES.
ONLY IF WE MOVE AGAINST THIS AND OTHER GLARING EXAMPLES OF
TAX AVOIDANCE AND EVASION CAN WE HAVE ANY HOPE OF ACHIEVING
A MORE JUST, MORE EQUAL, MORE HUMA 4E SOCIETY.
t9
MY GOVERNMENT IS STRONGLY COMMITTED TO ACHIEVING A MORE
EQUITABLE AND EFFICIENT TAX SYSTEM, THIS IS NOT ONLY AN
IMPORTANT END IN ITSELF IT IS ALSO A KEY ELEMENT IN THE
BUDGET STRATEGY WE HAVE DEVELOPED. THE THREAT BY THE
OPPOSITION AND SOME OTHERS IN THE SENATE TO THE NEW TAX
RECOUPMENT LEGISLATION IN wRELATION TO BOTTOM OF THE HARBOUR 12/,
12.
SCHEMES PUT AT RISK KEY REVENUE ASSUMPTIONS UPON WHICH THE
GOVERNMENT HAS BUILT ITS BUDGET. THE THREAT POSED TO
ECONOMIC RECOVERY MUST BE FULLY APPRECIATED FOR WHAT IT IS.
THE MEASURES WE HAVE TAKEN TO TIGHTEN THINGS UP AND THE
TAXATION REFORMS WE HAVE UNDERTAKEN) MUST SUCCEED IF THOSE
MOST IN NEED ARE NOT GOING TO BE DEPRIVED OF THE SUPPORT
WE OWE THEM. THREATS REEKING OF HYPOCRISY AND SHORT-TERM
OPPORTUNISM, THREATS PUTTING THE INTERESTS OF A HIGHLY
PRIVILEGED FEW ABOVE THE NEEDS OF THE COMMUNITY AT LARGE,
MUST NOT PREVAIL.
FOR THE LONGER-TERM, A THOROUGH-GOING REAPPRAISAL AND
RATIONALISATION OF THE TAX SYSTEM IS NEEDED. THE POINT HAS NOW
BEEN REACHED WHERE A DETAILED EXAMINATION OF THE ACTUAL AND
POTENTIAL NATIONAL REVENUE BASE MUST BE UNDERTAKEN. WIDELY
BASED COMMUNITY CONSIDERATION OF WHAT IS APPROPRIATE IN
TERMS OF ECONOMIC EFFICIENCY AND EQUITY rq TIMELY, THIS WILL
ENlABLE SENSIBLE AND FAIR ' CHANGES TO BE EFFECTED, NOT IN A
PIECEMEAL FASHION, BUT AS PART OF A WELL-CONSIDERED,
PROPERLY INTEGRATED PACKAGE. THE GOVERNMENT IS ASKING EPAC
TO UNDERTAKE AN EARLY EXAMINATION OF THESE MATTERS.
INDUSTRIAL RELATIONS POLICY ISSUES ARE AT THE HEART OF THIS
CONGRESS'S PREOCCUPATIONS AND CONCERNS, AS A MATTER OF URGENCY
MY GOVERNMENT IS MOVING TO ACHIEVE BADLY NEEDED REFORM IN
THIS AREA. WE ARE COMMITTED TO ACHIEVING REFORMS WHICH WILL
HAVE A LASTING IMPACT AND WHICH WILL LEAD TO A BASIC AND
BENEFICIAL CHANGE IN THE,! ATTITUDE OF ALL PARTIES.
13,
ACCORDINGLY A COMPREHENSIVE REVIEW OF THE INDUSTRIAL
RELATIONS SYSTEM IS TO BE CONDUCTED BY A TOP LEVEL
TRIPARTITE COMMITTEL OF INQUIRY, IT IS A MATTER OF
PARTICULAR PERSONAL SATISFACTION TO ME THAT CHARLIE
FITZGIBBON A GREAT AUSTRALIAN AND RESPECTED LEADER OF
THE TRADE UNION MOVEMENT, HAS AGREED TO SERVE AS THE
UNION REPRESENTATIVE ON. THAT COMMITTEE. THE HANCOCK
COMMITTEE REVIEW, WHICH IS LONG OVERDUE, WILL FOCUS
PARTICULARLY ON COMMONWEALTH LAWS RELATING TO THE
PREVENTION AND SETTLEMENT OF INDUSTRIAL DISPUTESi
COMMONWEALTH LAWS RELATING TO THE RECOGNITION OF UNIONS
AND EMPLOYER ORGANISATIONS, AND THE MANNER IN WHICH
COMMONWEALTH AND STATE INDUSTRIAL RELATIONS SYSTEMS MIGHT
BETTER INTER-RELATE. THE REVIEW WILL REPORT BY MARCH 1985
AND SHOULD PROVrDE THE BASIS FOR CHANGES THAT WILL SET
THE SCENE FOR INDUSTRIAL RELATIONS WELL INTO THE FUTURE,
IN THE MEANTIME, WE HAVE TAKEN STEPS TO ABOLISH THE
PERNICIOUS INDUSTRIAL RELATIONS BL REAUj A BODY WHOSE
ESTABLISHMENT BY THE FRASER GOVERNMENT WAS STRONGLY OPPOSED
BY BOTH UNIONS AND EMPLOYERS. WE HAVE ALSO MOVED TO
FACILITATE THE AMALGAMATION OF ORGANISATIONS REGISTERED
UNDER THE CONCILIATION AND ARBITRATION ACT AND WILL BE
INTRODUCING LEGISLATION IN THE CURRENT SITTINGS TO
IMPLEMENT OTHER REFORMS ALREADY ANNOUNCED, INCLUDING A
COMPLEMENTARY COMMONWEALTH-STATE INDUSTRIAL RELATIONS SYSTEM.
WE HAVE REVITALISED THE ROLE OF THE NATIONAL LABOUR
CONSULTATIVE COUNCIL AND , TURNED IT INTO A REAL FORUM FOR
CONSULTATION, CONSTRUCTIVPE CRITICISM AND INFORMED DEBATE. Jill,
1' 4.
ON ANOTHER FRONT THE GOVERNMENT PUT A SUBMISSION TO THE
COMMISSION IN THE JOB PROTECTION CASE IN SUPPORT OF
IMPROVED JOB SECURITY STANDARDS. TOO OFTEN THE STANDARDS
APPLIED IN AUSTRALIA HAVE FAILED TO MEET THE LEGITIMATE
EXPECTATIONS OF WORKERS AND HAVE COMPARED POORLY WITH THOSE
WHICH APPLY IN MANY COMPARABLE COUNTRIES. THE GOVERNMENT
ACCORDINGLY INDICATED ITS SUPPORT FOR:
IMPROVED STANDARDS IN RELATION TO DISMISSAL PROCEDURES;
OBLIGATIONS ON EMPLOYERS TO CONSULT IN ADVANCE WITH
WORKERS AND THEIR UNIONS ON PRODUCTIONj TECHNOLOGY AND
OTHER CHANGES LIKELY TO HAVE SIGNIFICANT EFFECTS ON
EMPLOYEES, INCLUDING PROPOSED REDUNDANCIES;
THE PRINCIPLE OF MINIMUM PERIODS OF NOTICE AND
CONSULTATION; AND
THE PRINCIPLE OF RETRENCHMENT COMPENSATION.
A KEY AREA NEGLECTED FOR FAR TOO LONG HAS BEEN THAT OF
OCCUPATIONAL HEALTH AND SAFETY. IT IS ENCOURAGING THAT
SEVERAL STATES ARE NOW STA'RTING TO TAKE ACTION.
9
RESPONSIBILITY FOR THESE MATTERS L'IES PREDOMINANTLY WITH THE
STATES., WITH THE COMMONWEALTH HAVING A DIRECT RESPONSIBILITY
ONLY IN RELATION TO ITS OWN EMPLOYEES, THE ACT AND EXTERNAL
TERRITORIES. BUT THERE IS MUCH TO BE GAINED BY GREATER
COORDINATION. THE COMMON 1EALTH IN CLOSE CONSULTATION WITH
THE STATES AND OTHER RELEtANT BODIES CAN PLAY AN IMPORTANT
ROLE IN THIS REGARD. .1015/ 1
MlY GOVERNMENT IS NOW FINALISING ARRANGEMENTS TO ESTABLISH
A NATIONAL HEALTH AND SAFETY COMMISSION AND OFFICE, THE
FOLLOWING STEPS ARE ENVISAGED:
ESTABLISHMENT OF AN INTERIM COMMISSION, SERVICED BY
A SECRETARIAT, TO DRAW TOGETHER INTERESTED PARTIES
AND SPECIALIST EXPERTISE TO PLAN FOR AND IMPLEMENT A
PROGRAM TO ESTABLISH THE COMMISSION AND OFFICE;
CONTINUED CONSULTATIONS WITH STATE/ TERRITORY GOVERNMENTS.)
INDUSTRY AND EMPLOYEE REPRESENTATIVES;
DEVELOPMENT OF LEGISLATION TO PROVIDE FOR THE FUNCTIONS
OF THE PROPOSED COMMISSION AND OFFICE, INCLUDING ITS
RESPONSIBILITIES FOR AUSTRALIAN GOVERNMENT EMPLOYMENT,
STEPS OF THIS KIND ARE PART OF OUR BROADER INTEREST IN MOVING
TO IMPLEMENT THE LABOR PARTY'/ S NATIONAL OCCUPATIONAL HEALTH
AND SAFETY STRATEGY. THEY WOULD AL4SO BE A PRECONDITION OF
OUR BEING ABLE TO RATIFY ILO CONVENTION No, 155 THE
CONVENTION CONCERNING OCCUPATIONALSAFETY AND HEALTH AND
THE WORKING ENVIRONMENT A CONVENTION TO WHICH MY GOVERNMENT
ATTACHES HIGH PRIORITY,
SOME OF THE MEASURES WHICH COULD BE INTRODUCED AND
COORDINATED BY THE COMMISSION MIGHT INCLUDE:
THE LICENSING OF CHEMICALS USED IN INDUSTRY .16/,
THE PROMOTION OF NATIONAL STANDARDS THROUGH
CONSULTATION AND IN COOPERATION WITH THE STATES
ENCOURAGING THE ESTABLISHMENT OF HEALTH AND SAFETY
UNITS IN THE WORKPLACE TO MOUNT EDUCATION PROGRAMS
AND TO MONITOR WORKING CONDITIONS
THE PROVISION OF INFORMATION ON POTENTIAL HAZARDS
COMMISSIONING RELEVANT RESEARCH PROJECTS,
SUCH MEASURES ARE BADLY NEEDED. MORE THAN 150,000 AUSTRALIANS
PER YEAR ARE INJURED AS A RESULT OF INDUSTRIAL ACCIDENTS.
THE CURRENT ESTIMATE OF PRODUCTION COSTS AND LOSSES DIRECTLY
RESULTING FROM INDUSTRIAL ACCIDENTS IS $ 6 BILLION PER YEAR.
THE ECONOMY CANNOT AFFORD SUCH COSTS AND INDIVIDUALS AFFECTED
DESERVE GREATER PROTECTION,
THE EARLY EXPERIENCE OF MY GOVERNMENT HAS UNDERLINED THE SCOPE
THAT EXISTS IN AUSTRALIA FOR ENLARGING AND IMIPROVING BILATERAL
CONSULTATION BETWEEN THE GOVERN~ MEN T, UNIONS AND EMPLOYERS IN
ALL SECTORS OF THE ECONOMY, WE HAVE ACTED IMMEDIATELY TO
ESTABLISH NEW AND IMPROVED CONSULT-ATIVE ARRANGEMENTS. OUR
PURPOSE WAS TO PUT CONSULTATIVE PROCESSES ON A SURE FOOTING
AND TO AVOID THE DISASTROUSLY CONFRONTATIONIST APPROACHES
OF THE PAST, *. 171,
HE ECONOMIC PLANNING ADVISORY COUNCIL HAS BEEN SET UP TO
CONTINUE THE PROCESS OF CONSULTATION AND) INFORMATION EXCHANGE
BEGUN AT THE SUMMIT, WITH MEMBERS DRAWN FROM GOVERNMENT,
UNIONS, THE BUSINESS SECTOR, WELFARE AND OTHER COMMUNITY
GROUPS. THE COUNCIL HAS A WIDE CHARTER, IT WILL PROVIDE THE
GOVERNMENT WITH INDEPENDENT COMMUNITY-BASED ADVICE ON THE
BROAD CONDUCT OF ECONOMIC POLICY, PARTICULARLY IN A MEDIUM
AND LONGER-TERM CONTEXT. NOT LEAST IMPORTANT AMONG ITS
FUNCTIONS WILL BE THE PROVISION OF ADVICE ON DESIRABLE AND
FEASIBLE GOALS AND TARGETS AND ON POLICIES TO REALISE THE
AUSTRALIAN ECONOMY'/ S FULL GROWTH POTENTIAL.
WE HAVE ALSO MOVED TO ESTAB3LISH AN ADVISORY COUNCIL ON PRICES
AND INCOMES, AS PROVIDED IN THE ACCORD, THIS BODY WILL
MONITOR, AND ADVISE THE GOVERNMENT ON) THE IMPLEMENTATION OF
THE VARIOUS ELEMENTS OF THE PRICES AND INCOMES POLICY, IT
WILL ALSO ADVISE ON THE COORDINATION AND CONSISTENCY OF THE
POLICY AT THE FEDERAL AND STATE LEVELS AND BETWEEN INCOME GROUPS,
IT WILL REVIEW AND REPORT ON THE EFFECTIVENESS OF THE POLICY
AT REGULAR INTERVALS. MEMBERSHIP WILL COMPRISE COMMONWEALTH
AND STATE GOVERNMENT REPRESENTATIVES, AND REPRESENTATIVES OF
UNION AND EMPLOYER GROUPS, AS WELL,, AS A REPRESENTATIVE FROM
PROFESSIONAL ASSOCIATIONS. THE ADVISORY COUNCIL WILL MEET
FOR THE FIRST TIME IN OCTOBER.
MY GOVERNMENT HAS THEREFORE PLAYED ITS PART IN MOVING TO
IMPLEMENT THE KEY ELEMENTS OF THE'ACCORD, THE UNION MOVEMENT
SHARES WITH THE GOVERNMENT A RESPONSIBILITY FOR ITS SUCCESS.
18/.
13,
SUCCESS OR FAILURE OF THE. ACCORD WILL BE CRUCIAL TO
DETERMINING WHETHER OR NOT THERE WILL BE A GENUINE
RECOVERY AND WHETHER OR NOT ITS BENEFITS CAN BE FAIRLY
SHARED BY-~ THE AUSTRALIAN WORKFORCE AND ALL SECTIONS
OF THE AUSTRALIAN COMMUNITY,
THE PRINCIPLES OF THE ACCORD MUST BE UPHELD AND SECTIONAL
INTERESTS AND DEMANDS TURNED ASIDE1
MY GOOD FRIENDS, IDO NOT COME TO YOU AS PRIME MINISTER
OF A LABOR GOVERNMENT WITH A MESSAGE THAT IS DIFFERENT
FROM WHAT I HAD BEGUN TO MAKE CLEAR AS YOUR PRESIDENTI.
IN 1975 I PERCEIVED THE CHANGING ECONOMIC ENVIRONMENT
IN THIS AND OTHER SIMILAR COUNTRIES AROUND THE WORLD,
IATTEMPTED IN MY PRESIDENTIAL ADDRESS TO THE AC. TIU,
CONGRESS IN THIS CITY, ON SEPTEMBER' 15TH, TO SPELL OUT THE
IMPLICATIONS FOR US AS TRADE UNION LEADERS RESPONSIBLE
TO OUR MEMBERS AND TO OUR COMMUNITY,
MAY I REMIND YOU OF WHAT ISAID THEN:
19.
"' THREE OUT OF EVERY FOUR OF WAGE AND SALARY
EARNERS ARE EMPLOYED IN THE PRIVATE SECTOR,
OUR MEMBERS, THE MILLIONS OF PEOPLE OUT THERE,,
DERIVE THEIR EMPLOYMENT WITHIN THAT SYSTEM AND
PAY THE PRICES WHICH DETERMINE THEIR STANDARD
OF LIVING WITHIN THAT SYSTEM,
ivlIN THESE CIRCUMSTANCES I SAY TO YOU THAT OUR
AFFILIATES MUST RECOGNISE THE FULL IMPLIC ATIONS
OF THEIR ACTIONS. IT IS ESSENTIAL THAT THE SELFINTEREST
OF PARTICULAR GROUPS BE BALANCED AGAINST
THE INTERESTS OF WORKERS AS A WHOLE. THAT, AFTER
ALLj IS WHAT TRADE UNIONISM IS FINALLY ABOUT.
AND AT THIS TIME THERE IS NO DOUBT THAT THEIR
PARAMOUNT INTERESTS ARE TO BE PROTECTED FROM
RISING UNEMPLOYMENT AND HIGH INFLATION, As
RESPONSIBLE LEADERS WE ARE BOUND TO PROVIDE
THAT PROTECTION. NO RHETORIC, 1OR CONCEIVED
PROVOCATION, SHOULD DIVERT US FROM THE BASIC
DUTY. ialTHE TRADE UNION MOVMENT IN'THE CIRCUMSTANCES
CONFRONTING THE COMMUNITY TODAY MUST BE PREPARED
TO EXERCISE ITS OWN RESTRAINT. THE SPECIAL
CIRCUMSTANCES MUUJ BE SPECIAL AND NOT SIMPLY THE
USE OF SOME EXCUSE WHICH IF EX TENDED WIDELY WOULD
MEAN THE GENERATION OF PRESSURES FUELLING MASSIVE
UNEMPLOYMENT AND FURWJIR INFLATION. lot
" THERE IS ABSOLUTELY NO DOUBT OUR MEMBERS WANT TO
AVOID THAT SITUATION AND I TRUST THAT FROM THIS
CONGRESS YOU WILL EXPECT YOUR INCOMING
EXECUTIVE TO PLAY ITS PART IN ENSURING COMPLIANCE
WITH THOSE EXPECTATIONS."
THAT WAS ALMOST EXACTLY EIGHT YEARS AGO. THE SITUATION
TODAY IS MUCH MORE URGENT AND DANGEROUS, FOR-WE HAVE HAD
SEVEN INTERVENING YEARS SEVEN YEARS OF MISGUIDED
CONSERVATIVE RULE CHARACTERISED BY AN ABSENCE OF ANY
COHERENT ECONOMIC POLICY, PARTICULARY IN THE AREA OF
WAGES. THE~ CONSERVATIVES' OWN PHILOSOPHY OF THEF FREE PLAY OFf MAKET
FORCES INEVITABLY LED TO ANOTHER UNSUSTAINABLE WAGES
EXPLOSION. WE HAVE REPLACED THAT CHAOS AND UNCERTAINTY WHICH LED
TO A MASSIVE DETERIORATION IN OUR ECONOMY, WITH A COHERENT,
COHESIVE AND POSITIVE ECONOMIC STRATEGY. THE PRICES.
AND INCOMES POLICY IS CENTRAL TO TF4AT STRATEGY.
t9
THEREFORE I REPEAT IN 1983 WITH AN EVEN GREATER SENSE
OF URGENCY WHAT I SAID IN 1975. BUT I SAY I ' T ' NOW WITH\
THE ADDED FORCE WHICH COMES FROM THE KNOWLEDGE THAT YOU'
ARE BEING ASKED TO EXERCISE RESTRAINT WITHIN THE FRAMEWORK
OF A COMPREHENSIVE AND EQUITABLE STRATEGY FOR ECONOMIC
RECOVERY, / 21
21.
SIGNIFICANT WAGES INCREASES EXTRACTED OUTSIDE THE
CENTRALISED SYSTEM WILL UNDERMINE OUR POLICIES AND CAUSE
THE ULTIMATE COLLAPSE OF THE INCIPIENT RECOVERY.
My GOVERNMENT, A LABOR GOVERNMENT, WITH A PARTICULAR
COMMITMENT TO INTERESTS OF AUSTRALIAN WORKING . MEN AND
WOMEN AND TO THE MASSES OF THE UNEMPLOYED, WILL-NOT
RESILE FROM ITS DETERMINATION TO UPHOLD THE PRICES AND
INCOMES POLICY, TO SEE REALISED THE PRINCIPLES OF THE
ACCORD AND TO ENSURE THAT THE POLICY SUCCEEDS IN
ITS CENTRAL AIM OF ACHIEVING A SUSTAINED AND SUSTAINABLE
RECOVERY, ADHERENCE TO THIS APPROACH WILL BE OF SUBSTANTIAL BENEFIT
TO ALL MEMBERS OF THE INDUSTRIAL PARTNERSHIP.
MY GOVERNMENT EXPECTS AND LOOKS FORWARD TO THE CO-OPERATION
OF EACH AND EVERY AUSTRALIAN IN THIS ENDEAVOUR,
22.
FINALLY, I WOULD NOT WANT YOU TO CONFINE YOUR DELIBERATIONS
TO MATTERS OF STRICTLY DOMESTIC PREOCCUPATION AND CONCERN,
THE INTERNATIONAL POLITICAL SITUATION, AND ESPECIALLY THE
EXTENT TO WHICH RELATIONS BETWEEN THE SUPER-POWERS HAVE
DETERIORATED, SHOULD COMMAND YOUR CLOSEST ATTENTION.
WE HAVE BEEN MADE VIVIDLY AWARE OF THIS IN tHE PAST WEEK
WITH THE COMPLETELY INEXCUSABLE SHOOTING DOWN OF KOREAN
AIRLINES FLIGHT 007 BY THE SOVIET UNION. WE REMAIN
DEEPLY CONCERNED AT THE CONTINUING INADEQUACY OF SOVIET
EXPLANATIONS OF THEIR ROLE IN THIS TRAGEDY. WE, ABHOR
THEIR LACK OF CONTRITION AND EXPECT THEM TO HEED THE OUTRAGE
OF THE INTERNATIONAL COMMUNITY,
THE WORLD TODAY IS3 FRAUGHT WITH TENSIONS. THE THREAT
OF NUCLEAR WAR IS AS REAL TODAY AS IT HAS EVER BEEN IN THE
PAST, THE NUCLEAR ARMS RACE HAS TO BE BROUGHT UNDER THE
CONTROL OF EFFECTIVE AGREEMENTS. A CLIMATE MUST BE ESTABLISHED
WITHIN WHICH A COMPREHENSIVE AND FYLLY VERIFIABLE BAN ON
NUCLEAR TESTING MIGHT BE POSSIBLE. W4E OWE THIS TO OURSELVES
AND TO FUTURE GENERATIONS.
MY OWN GOVERNMENT'S MOVES TO PROMOTE A. NUCLEAR FREE ZONE IN
THE SOUTH PACIFIC ARE A FIRST STEP IN THIS DIRECTION. WE
INTEND PRESSING AHEAD WITH THIS AND THE OTHER INITIATIVES
WE HAVE MOUNTED IN THE ARMS CONTROL AND DISARMAMENT Flt. rDi
23.
VLTIMATELY. PROGRESS SHOULD BE POSSIBLE ESPECIALLY IF, AS
IBELIEVE LIKELY, POPULAR AWARENESS OF THE RISKS INVOLVED
IN THE CURRENT SITUATION BECOMES SHARPER AND MORE DEMANDING.
IN CONCLUSION, MR PRESIDENT AND DELEGATES; MAY I STRESS
AGAIN THE OBLIGATION THAT WE ALL HAVE TO THOSE SIGNIFICANTLY
LESS PRIVILEGED THAN OURSELVES, PARTICULARLY THF LJNFMPl0YFV),
LET OUR THOUGHTS, OUR DELIBERATIONS AND OUR DECISIONS HAVE
THEM CONSISTENTLY IN MIND.
THAT IS WHAT OUR GREAT AUSTRALIAN LABOR MOVEMENT OF W~ HICH
YOU ARE SUCH AN INTEGRAL PART IS AND OUGHT TO BE ABOUT.
BELIEVING THAT YOU WILL SHARE THIS CONVICTION WITH ME,
I WISH THIS CONGRESS WELL.