Task for employers

Press, Volume CXVI, Issue 34104, 17 March 1976, Page 22

Task for employers

Z Pvtn Attocintifm* i WELLINGTON. March 16. Both the Government and employers must accept a much greater responsibility for achieving an improved publicunderstanding of the issues involved in seeking price stability, the Prime Minister (Mr Muldoon) said today. Speaking to the general council of the Employers' Federation, he said a commitment from boards of directors and senior management to this was crucial to the success of wage negotiations and the achievement of once stability. “1 think that 'most employers would also agree that attitudes and degree of commitment fall short of what is

'necessary in present circumstances." Mr Muldoon said the Government’s success in achieving price stability was primarily dependent on achieving much improved public understanding on the extent to which incomes could increase each year if (Prices were to remain stable, and on the fact that the distribution of the national income was fair and equitable. Employers readily understood that trade union officials must reflect the views of rank and file union members. ’ “If the rank and file genuinely believe that they are carrying an unfair share of the burden of economic adjustment, union officials have little chance of cooperating with a Government policy aimed at keeping income increases in line with the growth of real resources. “Hence a successful in-

comes policy requires that rank and file trade union members achieve much better understanding of the distribution of the national income, the relationship between wages and dividends, and the role of profits in achieving full employment.” PRICE CONTROL Mr Muldoon said that in the present climate of opinion it was essential that i the Government implement farm income stabilisation and price control policies. “The inefficiencies and problems associated , with price control are well understood by the Government, and measures to improve the present system are under active consideration. However. price control must be visibly fair or effective if trade union support for wage restraint is to continue.” The Prime Minister said the Government's role in achieving a much improved public understanding had received too little attention in the past. “The Government is actively considering ways in which this definciency can be rectified.” Mr Muldoon said that the achievement of full employment required the creation of some 25.000 new jobs each year—most of which must be in the private sector.

ine private sector expansion requires that business has the confidence and re-j sources to invest and expand,” he said.