PRIME MINISTER

FOR MEDIA .  :  '  Ã¢ÂÂ   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 Arbitration Commission  announced its recommendation that nearly all Commonwealth  public servants be granted pay increases of between about  6% and 6%%. 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 light .   of current economic difficulties and that it has recognised

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 will 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  Parliamentarians and senior public servants of 7%, a recommendation  v/hich 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 6%. 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  members of the Australian Labor Party, as well as other in the  community, know that to revert to full wage indexation as the  Labor Party's platform on industrial relations demands would

only undermine our economy at this difficult time.

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.  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.  :  ;  Â·

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 1%%. That decline is . Â· -a reflection of lower interest rates overseas, in particular

in the United States. Recent falls .in a,number 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 Australians 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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