The Press SATURDAY, JUNE 19, 1971. Power should stay with pay authority

Press, Volume CXI, Issue 32637, 19 June 1971, Page 16

The Press SATURDAY, JUNE 19, 1971. Power should stay with pay authority

Until the Government, by Order in Council, brought into force the third 'part of the Stabilisation of Remuneration Bill, the consent of the Remuneration Authority was required for substantial pay increases. If applicants did not accept its ruling, the authority had no alternative but to refer to the Minister any application for an increase of more than 7 per cent with which it disagreed. In fact, the authority became uneasy about two awards and referred them to the Minister of Labour; subsequently, it found that one of these awards could be justified and it consented to a 15 per cent increase. A decision on the second application has yet to be made. Having been informed by the authority of its earlier uneasiness, the Acting Minister of Labour (Mr Thomson) had but two courses open to him within the terms of the act: to accept the award proposals or to have the third part of the act brought into force. Failing to persuade parties to the award to suspend their applications to the authority, Mr Thomson caused the Government to exercise its power to bring the third part of the act into force. The authority itself has since pointed out the difficulties arising from the short time allowed by the act to test award proposals. Had more time been allowed, the further evidence on the applications might have convinced the authority and the Minister that an Order ia Council was not called for. But the point is of no great importance now. Part 111 of the act gives legal force to the authority’s declining to approve increases of more than 7 per cent; it did not have such power until this part of the act came into force. Since the Government chose to put its trust in this act to restrain pay increases, it should now show that it still believes in the ability of the authority to give effect to the intention of the act fairly and firmly. There is ample provision for the authority to acknowledge and approve special arguments for increases higher than 7 per cent. It has already done so.

The Minister of Labour (Mr Marshall) has suggested that the act might be amended so that Part HI Would apply in specific instances, not generally to all applications as it does now. The effect of such an amendment would be to put the discretion in particular instances in the hands of the Minister of Labour. This might appeal to some unions; but the idea is contrary to the whole idea of having a competent and impartial authority to decide which increases are justified and which are not. The Government should not amend the act in this way if it still believes in the efficacy of the legislation. Neither the price justification system nor the pay justification law will halt inflation; they do not reach to the root causes of inflation. Yet the authority will have some restraining influence on inflationary pressures if it is allowed to do its job. There is no reason to suppose that it is incapable of doing it with fairness to the parties to awards and with proper regard for the wider public interest.