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ÃÂ ÃÂ² Ã’ ÃÂº ÃÂ· ÃÂ² ÃÂ ÃÂ½  4 Q 7 n c a  s e e m a Â» * * . Â« 3 0 0 0 3 0 Â» eneaÂ«Â» w w  js s e f t m  ^ Â« o m c c e . is s a c Â» * * Â» m e n  . ... ,fflSS*3e8BSl 6331 KS53 A S Â®  _  mae js *i*Â» a *a B 3 a  vxszavsss&p /nasassaxssÂ»  tscsa '^ s a a s p '' Â«xesEKcssoEa Ã¢ÂÂ  FOR RELEASE: 1 9 - ^ Â·  NO.: | ÃÂ° ÃÂ¤ THE ALP-ACTU COMPACT The M i n i s t e r  f o r  I n d u s t r y  and Commerce, Mr P h i l l i p  L y n c h , s a i d  t oday  L a b o r ' s  s o - c a l l e d  agr eement  w i t h  t h e  t r a d e  u n i o n  movement i s n o t h i n g  more  t han a s o c i a l i s t  m a n i f e s t o . " I t  endor ses,  un i on power i n A u s t r a l i a ;  i t  paves t he v/ay f o r  a mas s i v e  e x p a n s i o n  o f  Gover nment  and sweepi ng new t a x a t i o n  m e a s u r e s ; i t  r e a f f i r m s   and u n d e r l i n e s  L a b o r ' s  commi t ment  t o s h a c k l i n g  e n t e r p r i s e  and i n v e s t m e n t . " i n  s h o r t ,  i t  i s a r e c i p e  f o r  chaos i n a l l  o u r  i n d u s t r i e s  and a t h r e a t  t o  t he s e c u r i t y  and w e l l - b e i n g  o f  e v e r y  A u s t r a l i a n  w o r k i n g  man and woman. " The p u r p o r t e d  agr eement  w i t h  t h e  t r a d e  un i o n  movement i s a t o t a l  s e l l  o u t   t o  t he p o w e r f u l  l e f t  wi ng f o r c e s  spr ead t h r o u g h o u t  t h e  l e a d e r s h i p  o f  t he  u n i o n  movement and t h e  Labor  P a r t y . " I t  r e b u f f s  t h e  p r o p o s i t i o n  o f  a s o c i a l  c o n t r a c t  t o u t e d  by Mr Hayden because  t h i s  wo u l d  be anathema t o  t h e  l e f t . " i t  exposes Mr Hayden' s a s s e r t i o n  o f  L a b o r ' s  s p e c i a l  r e l a t i o n s h i p  w i t h  t he  t r a d e  u n i o n s  as a f r a u d  and a sham. " i n  t a c k l i n g  t he key q u e s t i o n  o f  wages,  Mr Hayden and t he Labor  P a r t y  endor se  t h e  r i g h t s , o f  u n i o n s  t o a c t  as t h e y  w i s h ,  and o n l y  r e q u i r e  them t o a c t   " w i t h  a f u l l  a p p r e c i a t i o n  o f  t he need t o  a v o i d  e x a c e r b a t i o n  o f  i n f l a t i o n " . " The w o r d i n g  o f  t he document  has no d i r e c t i o n  r e g a r d i n g  wage r e s t r a i n t ,  but   i t  does d i r e c t l y  s u p p o r t  r educed hour s o f  wo r k  as c u r r e n t l y  b e i n g  pur sued _   by t he ACTU. ' ' " i t  opens t he way f o r  t he ACTU t o  go ahead w i t h  i t s  campai gn f o r  f u l l  wage  i n d e x a t i o n  p l u s  a sweepi ng package o f  o t h e r  pay r i s e s  and c o s t l y  b e n e f i t s   o u t s i d e  t h e  A r b i t r a t i o n  Co mmi s s i o n . ' . . . / I ! -  2 - ' Si mpl y p u t ,  i t  e n s h r i n e s  t he p o s i t i o n  taken a t  t h e  A d e l a i d e  c o n f e r e n c e  in  1979 " t h a t  b i n d s  ever y member o f  t he Labor P a r t y  - when Mr Hayden  abandoned Mr Hawke in a l u n c h t i m e  deal w i t h  t he l e f t ;  i n Mr- Hawke's own  terms "a g u t l e s s  s e l l  out  t o  t he l e f t " .  ' ' I t  is not  s u r p r i s i n g  t h a t  t he document f a i l s  t o  t a c k l e  t he pr obl em o f  how  i n f l a t i o n  c o u l d  be o v e r c o me , and how t he economy c o u l d  be managed. ‘ In f a c t , t he document i s a p r e s c r i p t i o n  f o r  g a l l o p i n g  i n f l a t i o n  t h a t  would  reduce A u s t r a l  ran l i v i n g  s t a n d a r d s  and harm ever y t r a d e  u n i o n i s t  and ever y Ã¢ÂÂ    A u s t r a l i a n .  ‘ ' Â· ' P a r a l l e l  to t he t ake o f f  in wages t h a t  u n d e r l i e s  the document , t he ALP and  t he uni ons have a commitment t o  a s o c i a l i s t  economy. 'They w o u l d ,  as d e s c r i b e d  i n t h e i r  document, " i n f l u e n c e  t h e  a l l o c a t i o n  o f   r es o u r c e s  between the v a r i o u s  s e c t o r s  in t he economy i n accor dance w i t h   p r i o r i t i e s  s e t  by t he n a t i o n a l  economic and s o c i a l  s t r a t e g y " . 'The a u t h o r i t a r i a n  s t a t e  t h a t  l i e s  behi nd t h i s  l anguage is c l e a r  from the  r e s t  o f  t he p a p e r . 'They ar e commi t t ed t o  i n c r e a s i n g  t he p u b l i c  s e c t o r  - i n c r e a s i n g  t he s i z e   o f  Gover nment . , 'They demand new p u b l i c  c o r p o r a t i o n s '  t o c a r r y  out  t h e i r  s o c i a l i s t  programmes,  such as the H y d r o - c a r b o n s  A u t h o r i t y  whi ch has been endorsed once a g a i n . ‘To f i n a n c e  i t s  p l a n s ,  and as one o f  t he pl anks in i t s  d e s i r e  to r e d i s t r i b u t e   t he e a r n i n g s  and c a p i t a l  o f  A u s t r a l i a n s ,  the ALP woul d set  up a Royal  Commission i n t o  t he d i s t r i b u t i o n  o f  income and w e a l t h .  . ' Thi s is o b v i o u s l y  t o  p r ep a r e  t h e  way f o r  L a b o r ' s  w e a l t h  t a x  in whi ch the  a s s e t s  o f  ever y f a m i l y  and ever y home woul d be a t  r i s k . ‘S t a r t i n g  from the e s t a b l i s h m e n t  o f  t he Commission a Labor Government, by  s ubpoena, woul d i n t r u d e  i n t o  the p r i v a c y  o f  a l l  A u s t r a l i a n  homes. ' . ' ' Ã¢ÂÂ   . Â· . / 3 -  3 “ They have g i v e n  us f a i r  wa r n i n g  t h a t  a Labor Government wi shes t o  d i v e s t   A u s t r a l i a n s - o f  t h e i r  a s s e t s ,  and w i l l  do t h i s  by i n s p e c t i o n ,  by i n t e r r o g a t i o n ,   and by p u n i t i v e  cap i t a 1  and w e a l t h  t a x e s . " L a b o r  have a l s o  r e a f f i r m e d  t h e i r  o b s e s s i o n  w i t h  r e s t r i c t i n g  and s py i ng on  i n t e r n a t i o n a l  compani es. " L a b o r ' s  p l a t f o r m  commits them t o s u p p l y i n g  i n f o r m a t i o n  gai ned in t h i s  way,  i n t h e  words o f  t h e  p l a t f o r m ,  t o  " . . . ( A u s t r a l i a n )  t r a d e  u n i o n s . . . a n d  a p p r o p r i a t e   i n t e r n a t i o n a l  t r a d e  uni on o r g a n i s a t i o n s " . " E l s e w h e r e  in t he document t h e r e  i s a pr oposal  f o r  c ut s  i n d i r e c t  and i n d i r e c t   t a x e s . ' . " T h i s  s u g g e s t i o n  is i n t o t a l  c o n f l i c t  w i t h  the Labor P a r t y ' s  e x p e n d i t u r e   p r o p o s a 1s . " T h e i r  commitment t o  $2,000 m i l l i o n  o f  e x p e n d i t u r e  in f i v e  areas o f  ' Government a l o n e ,  was ext ended by Mr Hayden on r a d i o  a c o u p l e  o f  morni ngs  a g o , to $2,300 m i l l i o n ,  o r  more. "And i t  is s t i l l  e a r l y  days f o r  Mr Hayden and h i s  Shadow M i n i s t e r s  i n t h e s e   and a l l  t he o t h e r  ar eas o f  p u b l i c  s p e n d i n g . " L a b o r ' s  l a t e s t  document  i s b u t  a b u n d l e  o f  wo r d s ,  w h i c h  i f  anyone t r i e d   t o  i mpl ement  i t ,  woul d t a k e  us t o  some k i n d  o f  f a n t a s y  l a n d . " T h e r e  i s no u n d e r s t a n d i n g  t h a t  i n c r e a s e d  i ncomes and b e n e f i t s ,  and i n c r e a s e d   empl oyment ,  can  o n l y  come, f r o m i n c r e a s e d  w e a l t h  and p r o s p e r i t y . " T h e r e  i s no u n d e r s t a n d i n g  o f  t h e  b a s i c  f a c t s  o f  a modern economy. The ALP s t i l l  does not  r e a l i s e  - d e s p i t e  t h e i r  d i s a s t r o u s  p e r i o d ,  i n Government  - t h a t  ma s s i v e  i n t e r v e n t i o n  and u n c o n t r o l l e d  wage" i n c r e a s e s  cause d i s l o c a t i o n  o f t he economi c syst em,  and l ead t o  r a p i d  i n c r e a s e s  i n unempl oyment  such as t he  appa 1  1  i ng r i se o f  197^1. " B u t  most o f  a l l ,  t h i s  document  i s n o t  t h e  h e r a l d e d  agr eement  w i t h  t h e  uni o n   movement . 'V- . Ã¢ÂÂ . / h ~ k - " I t  i s t h e  u n i o n  movement t e l l i n g  Mr Hayden we w i l l  a c c e p t  you i f  you l e t   us do what  we wa n t . " I n  Mr Wr a n ' s w o r d s , L a b o r ' s  p o l i c i e s  a r e  a " h o t c h  p o t c h " . " CANBERRA A. C. T.   22 A u g u s t ,1980

ÃÂ ÃÂ² Ã’ ÃÂº ÃÂ· ÃÂ² ÃÂ ÃÂ½  4 Q 7 n c a  s e e m a Â» * * . Â« 3 0 0 0 3 0 Â»

eneaÂ«Â» w w  js s e f t m  ^ Â« o m c c e . is s a c Â» * * Â»

m e n  . ... ,fflSS*3e8BSl 6331 KS53 A S Â®  _

mae js *i*Â» a *a B 3 a  vxszavsss&p /nasassaxssÂ»  tscsa '^ s a a s p '' Â«xesEKcssoEa Ã¢ÂÂ

FOR RELEASE:

1 9 - ^ Â·

NO.: | ÃÂ° ÃÂ¤

THE ALP-ACTU COMPACT

The M i n i s t e r  f o r  I n d u s t r y  and Commerce, Mr P h i l l i p  L y n c h , s a i d  t oday

L a b o r ' s  s o - c a l l e d  agr eement  w i t h  t h e  t r a d e  u n i o n  movement i s n o t h i n g  more

t han a s o c i a l i s t  m a n i f e s t o .

" I t  endor ses,  un i on power i n A u s t r a l i a ;  i t  paves t he v/ay f o r  a mas s i v e

e x p a n s i o n  o f  Gover nment  and sweepi ng new t a x a t i o n  m e a s u r e s ; i t  r e a f f i r m s

and u n d e r l i n e s  L a b o r ' s  commi t ment  t o s h a c k l i n g  e n t e r p r i s e  and i n v e s t m e n t .

" i n  s h o r t ,  i t  i s a r e c i p e  f o r  chaos i n a l l  o u r  i n d u s t r i e s  and a t h r e a t  t o

t he s e c u r i t y  and w e l l - b e i n g  o f  e v e r y  A u s t r a l i a n  w o r k i n g  man and woman.

" The p u r p o r t e d  agr eement  w i t h  t h e  t r a d e  un i o n  movement i s a t o t a l  s e l l  o u t

t o  t he p o w e r f u l  l e f t  wi ng f o r c e s  spr ead t h r o u g h o u t  t h e  l e a d e r s h i p  o f  t he

u n i o n  movement and t h e  Labor  P a r t y .

" I t  r e b u f f s  t h e  p r o p o s i t i o n  o f  a s o c i a l  c o n t r a c t  t o u t e d  by Mr Hayden because

t h i s  wo u l d  be anathema t o  t h e  l e f t .

" i t  exposes Mr Hayden' s a s s e r t i o n  o f  L a b o r ' s  s p e c i a l  r e l a t i o n s h i p  w i t h  t he

t r a d e  u n i o n s  as a f r a u d  and a sham.

" i n  t a c k l i n g  t he key q u e s t i o n  o f  wages,  Mr Hayden and t he Labor  P a r t y  endor se

t h e  r i g h t s , o f  u n i o n s  t o a c t  as t h e y  w i s h ,  and o n l y  r e q u i r e  them t o a c t

" w i t h  a f u l l  a p p r e c i a t i o n  o f  t he need t o  a v o i d  e x a c e r b a t i o n  o f  i n f l a t i o n " .

" The w o r d i n g  o f  t he document  has no d i r e c t i o n  r e g a r d i n g  wage r e s t r a i n t ,  but

i t  does d i r e c t l y  s u p p o r t  r educed hour s o f  wo r k  as c u r r e n t l y  b e i n g  pur sued _

by t he ACTU. ' '

" i t  opens t he way f o r  t he ACTU t o  go ahead w i t h  i t s  campai gn f o r  f u l l  wage

i n d e x a t i o n  p l u s  a sweepi ng package o f  o t h e r  pay r i s e s  and c o s t l y  b e n e f i t s

o u t s i d e  t h e  A r b i t r a t i o n  Co mmi s s i o n . '

. . . / I

!

-  2 -

' Si mpl y p u t ,  i t  e n s h r i n e s  t he p o s i t i o n  taken a t  t h e  A d e l a i d e  c o n f e r e n c e  in

1979 " t h a t  b i n d s  ever y member o f  t he Labor P a r t y  - when Mr Hayden

abandoned Mr Hawke in a l u n c h t i m e  deal w i t h  t he l e f t ;  i n Mr- Hawke's own

terms "a g u t l e s s  s e l l  out  t o  t he l e f t " .  '

' I t  is not  s u r p r i s i n g  t h a t  t he document f a i l s  t o  t a c k l e  t he pr obl em o f  how

i n f l a t i o n  c o u l d  be o v e r c o me , and how t he economy c o u l d  be managed.

‘ In f a c t , t he document i s a p r e s c r i p t i o n  f o r  g a l l o p i n g  i n f l a t i o n  t h a t  would

reduce A u s t r a l  ran l i v i n g  s t a n d a r d s  and harm ever y t r a d e  u n i o n i s t  and ever y Ã¢ÂÂ

A u s t r a l i a n .  ‘ ' Â·

' P a r a l l e l  to t he t ake o f f  in wages t h a t  u n d e r l i e s  the document , t he ALP and

t he uni ons have a commitment t o  a s o c i a l i s t  economy.

'They w o u l d ,  as d e s c r i b e d  i n t h e i r  document, " i n f l u e n c e  t h e  a l l o c a t i o n  o f

r es o u r c e s  between the v a r i o u s  s e c t o r s  in t he economy i n accor dance w i t h

p r i o r i t i e s  s e t  by t he n a t i o n a l  economic and s o c i a l  s t r a t e g y " .

'The a u t h o r i t a r i a n  s t a t e  t h a t  l i e s  behi nd t h i s  l anguage is c l e a r  from the

r e s t  o f  t he p a p e r .

'They ar e commi t t ed t o  i n c r e a s i n g  t he p u b l i c  s e c t o r  - i n c r e a s i n g  t he s i z e

o f  Gover nment . ,

'They demand new p u b l i c  c o r p o r a t i o n s '  t o c a r r y  out  t h e i r  s o c i a l i s t  programmes,

such as the H y d r o - c a r b o n s  A u t h o r i t y  whi ch has been endorsed once a g a i n .

‘To f i n a n c e  i t s  p l a n s ,  and as one o f  t he pl anks in i t s  d e s i r e  to r e d i s t r i b u t e

t he e a r n i n g s  and c a p i t a l  o f  A u s t r a l i a n s ,  the ALP woul d set  up a Royal

Commission i n t o  t he d i s t r i b u t i o n  o f  income and w e a l t h .  .

' Thi s is o b v i o u s l y  t o  p r ep a r e  t h e  way f o r  L a b o r ' s  w e a l t h  t a x  in whi ch the

a s s e t s  o f  ever y f a m i l y  and ever y home woul d be a t  r i s k .

‘S t a r t i n g  from the e s t a b l i s h m e n t  o f  t he Commission a Labor Government, by

s ubpoena, woul d i n t r u d e  i n t o  the p r i v a c y  o f  a l l  A u s t r a l i a n  homes.

' . ' ' Ã¢ÂÂ   . Â· . / 3

-  3

“ They have g i v e n  us f a i r  wa r n i n g  t h a t  a Labor Government wi shes t o  d i v e s t

A u s t r a l i a n s - o f  t h e i r  a s s e t s ,  and w i l l  do t h i s  by i n s p e c t i o n ,  by i n t e r r o g a t i o n ,

and by p u n i t i v e  cap i t a 1  and w e a l t h  t a x e s .

" L a b o r  have a l s o  r e a f f i r m e d  t h e i r  o b s e s s i o n  w i t h  r e s t r i c t i n g  and s py i ng on

i n t e r n a t i o n a l  compani es.

" L a b o r ' s  p l a t f o r m  commits them t o s u p p l y i n g  i n f o r m a t i o n  gai ned in t h i s  way,

i n t h e  words o f  t h e  p l a t f o r m ,  t o  " . . . ( A u s t r a l i a n )  t r a d e  u n i o n s . . . a n d  a p p r o p r i a t e

i n t e r n a t i o n a l  t r a d e  uni on o r g a n i s a t i o n s " .

" E l s e w h e r e  in t he document t h e r e  i s a pr oposal  f o r  c ut s  i n d i r e c t  and i n d i r e c t

t a x e s . ' .

" T h i s  s u g g e s t i o n  is i n t o t a l  c o n f l i c t  w i t h  the Labor P a r t y ' s  e x p e n d i t u r e

p r o p o s a 1s .

" T h e i r  commitment t o  $2,000 m i l l i o n  o f  e x p e n d i t u r e  in f i v e  areas o f  '

Government a l o n e ,  was ext ended by Mr Hayden on r a d i o  a c o u p l e  o f  morni ngs

a g o , to $2,300 m i l l i o n ,  o r  more.

"And i t  is s t i l l  e a r l y  days f o r  Mr Hayden and h i s  Shadow M i n i s t e r s  i n t h e s e

and a l l  t he o t h e r  ar eas o f  p u b l i c  s p e n d i n g .

" L a b o r ' s  l a t e s t  document  i s b u t  a b u n d l e  o f  wo r d s ,  w h i c h  i f  anyone t r i e d

t o  i mpl ement  i t ,  woul d t a k e  us t o  some k i n d  o f  f a n t a s y  l a n d .

" T h e r e  i s no u n d e r s t a n d i n g  t h a t  i n c r e a s e d  i ncomes and b e n e f i t s ,  and i n c r e a s e d

empl oyment ,  can  o n l y  come, f r o m i n c r e a s e d  w e a l t h  and p r o s p e r i t y .

" T h e r e  i s no u n d e r s t a n d i n g  o f  t h e  b a s i c  f a c t s  o f  a modern economy. The ALP

s t i l l  does not  r e a l i s e  - d e s p i t e  t h e i r  d i s a s t r o u s  p e r i o d ,  i n Government  -

t h a t  ma s s i v e  i n t e r v e n t i o n  and u n c o n t r o l l e d  wage" i n c r e a s e s  cause d i s l o c a t i o n  o f

t he economi c syst em,  and l ead t o  r a p i d  i n c r e a s e s  i n unempl oyment  such as t he

appa 1  1  i ng r i se o f  197^1.

" B u t  most o f  a l l ,  t h i s  document  i s n o t  t h e  h e r a l d e d  agr eement  w i t h  t h e  uni o n

movement .

'V- . Ã¢ÂÂ . / h

~ k -

" I t  i s t h e  u n i o n  movement t e l l i n g  Mr Hayden we w i l l  a c c e p t  you i f  you l e t

us do what  we wa n t .

" I n  Mr Wr a n ' s w o r d s , L a b o r ' s  p o l i c i e s  a r e  a " h o t c h  p o t c h " . "

CANBERRA A. C. T.

22 A u g u s t ,1980

