The Sydney Morning Herald from Sydney, New South Wales, Australia • Page 1

Thursday, April 14, 1977 NOWRA Sailor's court-martial over air base blaze opera- 2 FORECAST (for today): Metropolitan: Mild, seabreczes. NSW: Isolated showers and thunderstorms in NE. Mild, light winds. Max temps: City 24, Liverpool 25. Weather, sun, moon, tides page 20.

No 43,470 Telephone 2 0944 First published 1831 26 PAGES 12c LATE EDITION COUDI EVEN GOVT UNITED 3 ddodCe rfi today THE Premiers and their 40-odd advisers attending the big conference in Canberra have experienced Mr Fiver's famous edict on life at first hand. i i i ALL through the sessions. mm as 3-month freeze of wages, prices suggested From PETER BOWERS and IAN FRYKBERG CANBERRA. The Commonwealth and the six State Governments united yesterday in an unprecedented call to the nation for an immediate voluntary three-month pause in wages and prices. The official implementation of the pause depends oji the success of a round of urgent talks with employer and union groups, but the Prime Minister and the six Premiers made it clear that they regarded the pause as applying immediately.

attendants have been taking in trays of coffee for the Prime Minister, the Treasurer and the Attorney-General. But they pointedly haven't offered coffee to the State delegations, many of whom are understandably put out. trim SCHOOLCHILDREN On the eve of a public Inquiry into the funeral Industry, Alan Gill uncovers some disturbing facts in a two-part report. Page 7. Mr Dolan: "Unions would be Surprised unions either sceptical or hostile have been milking the soft drink machines at the NSW Art Gallery.

Instead of dropping coins in the slot and sliding the cans out, they've been arming themselves with straws and emptying rows of them. ROOTS 0 A 1 The second of two articles which question the historical validity of Alex Haley's best-selling book. Page 7. WE call it Dream Point. By KEITH MARTIN, Showscene Mr Fraser and two Labor Premiers, Mr Wran (NSW) and Mr Dunstan (SA), warned they would condemn any move to beat the pause by raising prices when business and commerce opens this morning.

If unions and employers agree to the pause, it will mean that the next national wage case hearing, due to start on May 3, would be deferred until after the three-month period. It will also mean that employees expecting an increase in wages from renegotiated awards due to start within this three-month period would not get the pay rise until later. The agreement took unions and employers by surprise. The unions were generally sceptical that the pause would work and some elements were openly hostile. Employers gave the proposal their cautious approval but the executive directbr of the Australian Council of Employers' Federations, Mr George Politcs, said he thought the freeze would have to last six months if it were to be effective.

Unless cost structures were reduced during the freeze, there would be a rush to increase prices and wages once it was over. Latest in entertainment, film and theatre. PagelO Tomorrow Officially it's the Maritime Industrial Park at Blackwattle Bay, an ugly, space-for-rent parcel of treeless foreshore where skeletons of partly-finished yachts and cruisers tell of optimism, heartbreak and determination. Many hopeful builders begin boats here (see picture, Page 3), some even living in caravans on the site. But as John O'Neill, a veteran yachtsman (he has just launched his fourth boat) told Column 8, few complete them.

THE ROCK RELEASE Pause may be extended Mike Parker reviews the latest rock music records. BUT some do. Kent PAGE 6: Editorial. PAGES 8, 9: Comment trom Prim Minister and Premiers, employers, Industrialist and econo- Industrial Reporter Union reaction. last night to the proposed wages-prices freeze ranged from scepticism on the part of the right wing to open hostility on the part of the left.

The sudden proposal took all sections of the trade-union movement by surprise. The ACTU president, Mr Hawke, who is ill in bed, was noncommittal last night. He said he would raise the proposal at the next meeting of the ACTU executive, which begins in Melbourne in the first week in May at the same time as the Arbitration Commission is due to begin its consideration of the national wage adjustment for the March quarter followed by a complete review of wage fixing methods. Mr Hawke said he could not comment further until he received some definite communication from the Premiers' Conference. But the ACTU senior vice-president, Mr Cliff Dolan, Federal secretary of the Electrical Trades Union, who is a strong supporter of Mr Hawke was less reticent.

"So what is new?" he asked. "The unions have been under a wage freeze, caused by plateaucd, cut-off and minimum wage indexation for months. "Now the Prime Minister and the Premiers are talking about a prices freeze. We will believe it The Victorian Premier, Mr Hamcr (left), the architect of the proposed wage-price freeze, arrives at Parliament House yesterday with his deputy, Mr Thompson. Phone 20944 to have the Herald delivered; K'e easier.

mitt. Tn DacKgrouna to in freeze. Text of Premier' statement. PAGE 18: Financial Editor com ments. No bans, but supplies short ihops increase If agreement is reached for a voluntary pause, the Commonwealth and the States will ask the Arbitration Commission and the Prices Justification Tribunal to implement the "general pause." A general pause would mean that consumer goods and services prices would not rise apart from some items such as fresh fruit, vegetables and meat which are subject to daily price factors.

Land prices, local council power and transport charges and a wide range of other areas would also be frozen. Although the joint statement released after the special Premiers' Conference referred only to a three-month pause, Mr Fraser and the Premiers will consider extending it to six months if it proves success- ful. The agreement came dramatically and unexpectedly at the end of the two-day conference in Parliament House called by Mr Fraser to discuss federalism. It emerged after attempts by the States to force Mr Fraser into a Borjesson, 28, and Stefan Bjorne, 29, have their 17-metre ketch Wasa Tangi (Fijian for Sea Wind) ready to sail. After three years scrimping and hard work, they leave in a month orr their dream trip ar-round the world.

Glenn Stedman, 27, has just resigned as manager of a mining equipment company to complete his $40,000, 16-metre yacht Fusion, which he began while working in Kalgoorlie (it cost $3,000 to transport to Sydney). "Like every idiot here," he says, "I'm planning to sail the seven seas." All should be ready in three months. order bread full-scale debate on the economy, and the wage and price pause was initiated by the Victorian Premier, Mr Hamer. Mr Hamer originally proposed a national conference of unions, employers and governments to discuss the pause, but after a day of manoeuvring the conference opted for an immediate pause on the advice that this was the only way it would work, The proposal could have major political repercussions for the Federal Government because inherent in the wage and price pause is an admission by Mr Fraser that his economic policies are not supermarkets and had in creased the number ot deliveries from two to three a day. Union officials pre when we see it.

dieted yesterday a return to home deliveries. They said the decision of the Prices Commission to equalise the price A ROADSIDE stall on of home delivered and Leaders pledge support Petrol flows free in price war Ten thousand gallons of free petrol will be offered by the Service Station Association and the Motor Traders' Association today to mark the launching of their campaign for cheaper petrol. Motorists who fill-up with the 45.000 litres of free petrol at the Granville Caltex Service Station in Parramatta Road from 8 am today will also receive a pamphlet outlining the proprietors' case. The Caltex station is three blocks from the Granville ACTU-Solo station. A spokesman for the Service Station Association said yesterday that the free petrol was being offered so the public would realise that the proprietors were not against discounting.

There was no justifiable reason why all service stations should not be able to purchase petrol at the same price. The spokesman said that, because the oil companies dominated retail outlets, proprietors were obliged to pay high prices for petrol and so were customers. If the present system of discounting continued many regular service stations and their mechanics would disappear. Garage men to meet PM over cut-price war, Page 20. shop bread at 50c a loaf Botany Bay carries the sign, "Prawn-brokers." No prizes for guessing what Is sold.

markets and place an immediate ban on any discounters. Because of the union ban deliveries to some shops would be cut off while others would order less than normal, as has happened this week, fearing that they would be caught with bread which they could not return. Spokesmen for the Coles New World supermarket at Marrickvillc, Permewans at Campsie and Flemings at Clcm-ton Park said their bread orders had been cut by up to a third this week. They said customers shopping late on Tuesday and yesterday had been unable to buy bread. The executive director of the NSW Retail previously shop bread was lc cheaper than home-delivered bread HAVE Australians be and any shortages which might occur at shops could be expected to increase the demand for home deliveries.

Mr Young said householders could get home deliveries by telephoning bread manufacturers. Editorial, Page 6 come so politically divided that what may possibly be best for them is now stifled by party political concepts? This is the basis for a question to Mr Fraser, on Page 3. "I am surprised that Mr Wran and Mr Dunstan have gone along with this idea. "The unions would be very suspicious about anything emanating from Mr Hamcr and Mr Fraser. "First we would want restoration of the wage losses caused by indexation about four to five per cent.

"We would want some assurance that the price freeze is fair dinkum. "Instead of talking, Mr Fraser should have been using his influence on some of his friends like BHI General Motors-Holden's. Wool-worths, Coles and Grace Bros, who have been making profit increases by the million. "1 don't think the unions would refuse to confer with governments on the idea. "But we would need to see something tangible on how prices would be controlled, not just voluntary control." Mr Laurie Short, national secretary of.

the Federated Ironworkers' UnFon and a leading right-winger, said he was sceptical about the proposal but he would like to see it given a try. He said the idea would probably get popular support, but the reality was that it would have to overcome many obstacles. Mr Short said he was in the United States when President Nixon Major supermarket chains have increased bread orders today to overcome shortages. Supermarkets had cut back their orders of fresh bread this week because of Government legislar tion banning the return of bread to manufacturers. Only four supermarket chains had bread left yesterday to sell at a discount of five cents and customers at some suburban supermarkets were unable to buy bread because of the cutbacks.

Nine out of ten supermarkets visited by the Herald yesterday had reduced their orders from bakeries because of the threat of a union ban if they sold day-old bread at a discount. The NSW Bread Industry Employees' and Salesmen's Association has a ban on delivery of bread to shops which sell it at less than the maximum retail price of SO cents for a sliced and wrapped 680g loaf. The association feels that discounting would be a threat to jobs. The State secretary of the association, Mr Eric Young, said no bans had so far been imposed because they had found no instances of sale of discount bread. But, he said, union officials would continue to watch shops and super Traders' Association, Mr On other pages Immediately after yesterday's conference, the Prime Minister and most of the Premiers pledged their total support for the pause in a series of interviews on the front steps of Parliament House.

"We believe there is the wijl within the Australian community to respond to the appeal that is going forward," Mr Fraser said. "It is a rare occasion when you get people from the Commonwealth and from the States, from the Labor Party, the Liberal Party, and the Country Party all putting forward a national call in a national cause. "The force of that call, on its own, I believe will carry a good deal of weight." Mr Fraser, Mr Wran, Mr Dunstan and Sir Charles Court (WA) in separate interviews all issued strong warnings against companies not to try to "beat the gun" by increasing prices first thing today. Mr Fraser said: "I would look very sourly indeed at any firm or business that sought to put up its prices at 9 am tomorrow morning to beat the introduction of the three-month period on a formal basis. "I certainly hope that would not happen.

If anyone does it, that particular business would deserve condemnation. "A reference to the Prices Justification Tribunal will enable that tribunal to report on any firm that acts in that way." Mr Wran was even stronger, declaring that he would use the full force of the NSW Government to isolate any company which raised prices (report below). Commonwealth and State officials will meet in Canberra today to start working out details of the national pause. The Leader' of the Federal Opposition, Mr Whitlam, who addressed the nation last night on television in a recorded statement, is expected to comment on the proposal today. However, his declared challenger for the Labor leadership, former Treasurer Mr Bill Hayden, said the pause was a "flimsy political gimmick." It was no substitute for sounds-economic management.

"Inflation, like bad cannot be banished overnight or over three months by Government fiat. It is a symptom of a deep-seated problem in the economy," he said. "At the end of three months the problem of inflation will not only still be there but will have built up a full head of pressure and burst out again with greater force." Roy Lawrence, said there had been some under-ordering and under-delivery of bread yesterday, but the eight major supermarket chains had decided to by John FilrfiK mSSKi ot Jonti street, irotwiy. ox 506, C.P.O., SvdnJv 2001. Rwl.t.r.d tor patting prict tniy, Inttrititi br air extra.

place new orders last night for today's trading. "This will ncessarily mean some bread will be left over the next day," LATE NEWS Mr Lawrence said. "That will be sold at Section 2 Turf: Stewards censure jockey after Dalrello wins All-Aged Stakes at Randwick. Malcolm Johnston off to England soon. Page 15 Trotting: NSW reinsman to drive NZ pacer in Inter-Dominion.

Page IS Cricket: Three home games for Tasmania in next year's Sheffield Shield competition. Page IS Rugby League: Phil Lowe to play for Hull Kingston Rovers again. Page 15 Finance: Bonds warns that price increases for its products are inevitable. Page IS a discount." The executive director applied a 90-day price and wage freeze in 1971. As soon as the freeze was lifted there was a big surge forward of prices and wages which had been bottled up during the pause.

Continued, Page 9 of the Bread Manufac-facturcrs of NSW, Mr Max Austin, said bakers were prepared to provide additional supplies to Wran commits NSW to plan Whitlam: Fraser attacked over the economy. Page 2 Libel case! QC tells jury of attempt to "destroy Junie Morosi. Page 3 Ferries: Jet-foil plan for Manly ferry. Page 3 Pakistan: Ambassador resigns in protest at Mr Bhutto's regime. Page 4 Zaire: US limits Zaire aid to "non-lethal" Page 5 Fiji: Unusual vice-regal powers Peter Hastings.

Editorials. Letters. Mol-nar. Page 6 Funerals: The economics of death first of two articles by Alan Gill. More question marks over the best-seller Roots.

Music. Page 7 Showscene: Hayes Gordon talks about theatre as a propaganda tool; News on Cliff RichardLittle River Band, Renee Cieyer and Norman Gunston concerts; New films. Page 10 Discrimination: UN praise for Australia's "candid" report on racial problems. Page It A ticket for the cello; School for underachieve; Women at the lnter-Parliumentry Union Conference; Recipes from Russia; Auction of ancient race books; Outdoor gear. Pages 12-14 Comics 10 Crossword 10 Finance 18-20 Law Notices 17 Look! 12-14 Lotteries (2858, 7074) -22 Mall 20 Radio 17 Shipping 17 Showscene 10 Sport 15-17 Television 20 Weather 20 Italy hit by earth tremor ROME.

Wednesday. An earth tremor- woke thousands of people today in the Frtiili province of northern Italy, scene of last year's massive earthquake which killed 1,000 people. The tremor registered 2.9 on the Richtcr scale, according to the Geophysical 1 Institute ut 1 rieste. IN FINANCE, PAGE 18: Capital inflow cut Australia's overseas reserves fell in March after a sharply reduced inflow of private capital failed to offset a heavy deficit on current account. The downturn reduced overseas reserves to $2,999 million and poses the question whether the Government will soon case controls on overseas borrowing.

News Ltd profit up News Ltd, publishers of The Daily Telegraph, The Australian and Daily Mirror newspapers, increased net profit by 22.4 per cent to $8.54 million in the half-year to Decern her 3 1. However, directors have warned that devaluation and the higher cost of newsprint will make the second half-year more difficult. South Wales is a State governed by Labor, he replied jocularly: "Well, as 1 think someone else has said life wasn't meant to be easy, was it." As far as Mr Wran is con-, cerned, the price pause is effective immediately and all-embracing. In an interview on the front steps of Parliament House he took an uncompromising stand by declaring he would publicly condemn any company which tried to "beat the gun" by putting up prices this morning. "I will not only publicly condemn them," he said.

"All the resources of the Government will be used to isolate any such From IAN FRYKBERG, State Political Correspondent CANBERRA. The New South Wales Government will use the full force of its powers to make the wage and price pause work. The Premier, Mr Wran, gave this undertaking yesterday after the special Premiers' Conference. The question has not been discussed by the NSW Cabinet, but Mr Wran conferred by telephone with some of his ministers during the day. "I have committed New South Wales to this.

1 am committed to making a personal appeal and I vill," he said. "The economy is not improving under the present economic strategy and I would be miscreant to my duty if I didn't seek any alternative course." The Premier will start talks today with his ministers and Labor officials on the part NSW will play in the national pause plan. However, he is likely to strike some opposition from sections of the labour movement in the State. Some sections of the NSW Labor Council as well as some members of his own parliamentary party, are likely to ask why the decision was taken without consultation, f. When asked if he expected some problems from unions because New 1 ii mi it 'nlaki'l.