E&OE...............................................................................................................................
Well, thank you very much Peter for those very warm words of welcome;
to Joy Howley; to Tony Staley; to Peter Poggioli; to Phil Gude, the
Deputy Leader of the State Parliamentary Liberal Party, Alan Stockdale,
the Treasurer of Victoria, to my other Ministerial and Parliamentary
colleagues, both State and Federal, and most importantly the men and
women of the Liberal Party of Victoria.
It is a great pleasure for me to back addressing once again the State
Council gathering of the strongest division of the Liberal Party of
Australia. A Division, that over the years through good times and
bad for the Federal Parliamentary Party, in Government and in Opposition,
has always delivered a magnificent electoral dividend to us in Canberra.
I want in my remarks this morning to express again my gratitude to
the Victorian Division for the tremendous understanding, and support,
and loyalty, and vigorous advocacy which all of you have delivered
to us over the last two years. It has been a two year period of tremendous
achievement. And as we turn our gaze towards the inevitability of
a Federal election some time in the next twelve months and if I were
some of the newspaper commentators I wouldn't get too excited
about particular dates. Can I say to all of you that the next twelve
months is not a time to be reticent, it is not a time to be shy, it
is not a time to be unforthcoming about what the Government that I
have the privilege to lead has achieved.
In many respects the Coalition Government elected in March of 1996
has been the greatest reform government Australia has had since the
end of World War II. In all the areas you look at you have seen sweeping,
indeed, fundamental reform. No Government and no Treasurer has achieved
what my Government, and Peter Costello has achieved, over the last
two years in turning around the disastrous fiscal inheritance that
was left to us. A $10.5 billion deficit concealed - but so obvious
and there for the asking. But the day after the election when I met
the outgoing head of the Prime Minister's Department and his
two colleagues in my then Opposition Leader's office in Sydney,
still recovering as I was from the euphoria of the night before, but
able to read, just, because I had been to Church. I was able to read
those dreadful figures. They handed me the book. It was all there
and, of course, it had been there for weeks but somebody hadn't
bothered to ask. And that is the measure of the difficulty that we
faced. We did inherit a deficit of $10.5 billion. And in just two
years we have turned that by dint of an extraordinary effort of fiscal
discipline to which all of my colleagues have contributed. We have
turned that around and I am immensely proud of that reform. And it
is a reform that is widely recognised throughout the economic world.
It is a reform that is helped to fire-proof the Australian economy
against the worst of the Asian ravages. It means that as we talk to
the leaders of Indonesia, the leaders of China and Singapore we are
able to talk from a position of strength. And along with Japan, Australia
is the only nation that has been strong enough to participate in the
three IMF bailouts, respectively of Korea, Thailand and Indonesia.
And all of those bailouts have involved an investment in the future
of Australian jobs and Australian industry and that is why we have
done it. But you only do that from a position of strength. If Mr Beazley
and Mr Keating had been returned at the last election Australia would
not have been able to help Indonesia and Thailand and Korea in their
hour of need. We would not have been able to be the good regional
mate that we have been to those countries.
But as Peter said, we have delivered the lowest interest rates that
this country has seen for thirty years, or more. The reductions in
housing interest rates, worth on average about $250 to $300 a month,
or put another way - the equivalent for the average wage and salary
earner in Australia of an increase of $100 a week in that person's
income. That is the measure. And none of you should ever forget in
the months ahead that in 1990 the overdraft rate for small business
was driven to 20.5 per cent under Mr Keating's Treasurership.
And in the last week we have had two of the major banks in Australia
announce dramatically lower interest rates for small and large businesses.
And that we will have a base rate for small business in the order
of 7.25 per cent from Westpac and about the same from the Commonwealth
Bank. And I expect it will only be a matter of time before the other
banks and financial institutions respond. None of that would have
been possible if we hadn't cut the budget deficit. None of that
would have been possible if we hadn't embarked upon a process
of fiscal consolidation.
But it doesn't end there. We have reformed the industrial relations
system and we have reformed it in a climate of industrial peace and
industrial tranquility, the like of which we have not seen at any
time since the end of World War II. Indeed, in 1997, the number of
industrial disputes in Australia hit the lowest level it had been
for
85 years. In other words, we had to go back to the years of World
War I to find a period of industrial peace, the equal of what we experienced
in 1997. So much for all the prophecies of blood in the streets and
industrial strife - all the warnings that were made in those speeches
by Mr Kelty and others on the eve of the 1996 election. Because what
the Australian people have said and what the Australian workers have
said is that they welcome the opportunities and the choice involved
in the new industrial relations era that we have introduced.
And, of course, under Peter Costello's Treasurership, we have
also embarked upon some very fundamental changes and reforms to the
Australian financial system. We have, in the Australian financial
system now, one of the most competitive in the world. And increasingly
Australia is seen as a haven for investment in this part of the world.
We have a stable political system. We have stable economic conditions.
The lowest rate of inflation in the OECD area. We have a stable legal
system. We speak the international language, the English language.
And we are seen as having a stable banking system with an open competitive
financial approach. In other words, you have a coming together of
all of the influences that make Australia the most attractive place
in the world in which to invest. And I believe that we are set fair
to realise one of our other great goals in the next century. And that
is to see Australia become, after Tokyo, the second great financial
centre of the Asian Pacific region. And to join New York and London,
along with Tokyo, as the four great financial centres of the world.
And, of course, the reform agenda doesn't end there either. We
have, by our commitment, to allow the men and women of Australia to
buy the remaining two-thirds of Telstra. We have given ourselves the
capacity, in that one single decision, to reduce, by 40 per cent,
the total Federal Government debt of this country. In other words,
40 per cent of the almost $100 billion of Federal Government debt
that we inherited from Mr Beazley and Mr Keating in March of 1996.
We've also seen significant strides on the employment front.
We have seen, over the last six months, the generation of about 140,000
new jobs. We have seen significant reforms to small business. We have
seen the introduction of the work-for-the-dole principles. The principle
of mutual obligation. The principle that Mr Beazley chokes on. The
principle that no Labor government could ever embrace because the
trade union movement would deny them the capacity to deliver it in
government.
And so, my friends, the list of reforms has been quite fundamental.
On the 1st of May we will introduce a fully competitive system of
labour market tendering. The Jobs Network, it represents, for the
first time anywhere in the world, a far more private sector approach
to the process of job placement. Wherever you go, in all the fields
of our responsibility and our endeavour, this has been a great reforming
government.
And, of course, we have ahead of us that great unfinished piece of
economic reform business in Australia, and that is to reform Australia's
increasingly outmoded and ramshackled taxation system. We've
said, consistently, that we will lay before the Australian people,
before the next election, a plan to be implemented after the election
that will restore fairness and equity to the Australian taxation system.
A plan that will be bad news for the cheats, but good news for the
honest workers of Australia. It'll be good news for the exporters
of Australia. It'll be good news for the small business men and
women of Australia. And, above all else, it will be good news for
the future economic competitiveness of our nation.
What is the response of the Labor Party to that? The response of the
Labor Party to that is to pretend that the present system is adequate
- the system that they made worse and worse over a 13 year period.
And they demonstrate, by their response to our approach, they demonstrate
their fundamental indifference to serious reform and they demonstrate
their fundamental and continuing unfitness for office.
Ladies and gentlemen, there is one other great issue that is with
us at the present time. And that, of course, is to reform the Australian
waterfront. It is part, almost of the legend of industrial relations
and life in Australia, that our waterfront is inefficient. There's
that wonderful story about the lady of Charleville, when she was told
that a cyclone was coming by her grand-daughter and she said: don't
worry, darling, the wharfies won't land it. And, of course, it's
not a joke, only in the most peripheral of senses. It has long been
the grim reality of many of the exporters of Australia, particularly
our farmers who've worked hard in difficult seasons against great
odds only to see market opportunities squandered because of the inefficiency
of our waterfront. By any measure, we have a highly inefficient waterfront.
Bob Hawke promised and delivered many meetings when he was Prime Minister.
And that is the response of Mr Beazley He said: oh, there's no
problem with the waterfront, all you've got to do is have a meeting
or, if necessary, two or three or four or five meetings and at the
end of the day you can negotiate an arrangement with the Maritime
Union of Australia. Well, they tried that. The Labor Party tried that.
And there was about $450 million spent, under the former government,
as a result of all of those meetings. And we got absolutely no lasting
dividend in terms of improved productivity.
Our waterfront is still woefully inefficient by world standards. It
is miles behind the wharves of our competitor nations in the Asian
Pacific region. The reforms that were undertaken in New Zealand a
few years ago have literally left us for dead. We have tried negotiating.
We have always been willing to embrace sensible reform. But in the
past, the law has stood in the way. But now you have a government
that has had the courage to change the law.
When we changed the Industrial Relations Act, we broke the
monopoly on the recruitment and the supply of labour on the Australian
waterfront by the Maritime Union. And it has now been possible, through
the courage of Patricks - and I say that deliberately and unashamedly
- and the courage of the National Farmers' Federation. Those
two organisations have taken advantage of the law that we are proud
to say that we changed. And what we are now seeing is the first real
attempt for 50 years to deliver a more competitive waterfront. And
this is a defining moment in Australia's industrial relations
history. It is a defining moment in a very, very long saga, a disgraceful
saga, of low productivity and anti-competitive behaviour. And it's
an opportunity that has to be embraced, an opportunity grasped by
the Australian community.
And I want to say, on behalf of the Government, that we will support
any attempts, provided they are within the laws of Australia, to make
Australian wharves more competitive and more productive. And we will
support any, legitimately, within the laws of Australia, who commit
themselves to achieve those very important national interest goals.
And, of course, we're not dealing here with the battlers of the
trade union movement. We're not dealing here with underpaid people.
We're dealing here with people whose incomes are in the order
of $70,000 to $80,000 a year on average. We are dealing here with
people who've made an art form out of the rorting that goes on,
on the Australian waterfront. And we are dealing with a union that
believes that, above all unions, it has a right to privileged treatment,
that has a monopoly on privileged treatment and to hell with the consequences
to Australia and to the rest of the trade union movement. And one
of the things that I find quite intriguing about the behaviour of
the MUA over the past few days is the way in which the ACTU is edging
itself away and saying: well, no, we really want this strike limited,
we don't really want it to spread.
Well, can I just say again to all of you, ladies and gentlemen, this
is a defining moment in our industrial relations experience. It is
a very important issue and it is very important to the national interest
of Australia that there be the right conclusion.
My friends, can I say something of the contribution, as I would very
much like to do, of my Victorian colleagues to the successful working
of my Coalition Government. I'm very proud of the fact, of course,
that there are five Victorians in the Cabinet. And one of the most
interesting things I find to do is to make a few comparisons. I think
of the Minister and, if I can remember the Shadow Minister, I contrast
the performance of the Minister versus the Shadow Minister.
Now, I start with Peter Costello. Now, he's done pretty well.
He's done very well. And you know who his Shadow is - you must.
You're not depriving Gareth of attention, are you? The only thing
I'd say about that comparison is simply this, while Peter Costello's
been cutting your interest rates, Gareth Evans has been trawling through
the gutter of Australian politics.
Now, this is one that you really won't get, even in jest. Who
really knows the Shadow Minister for Industrial Relations? But, of
course, it gets even better. I don't think there's any -
Laurie? No, no. He's the Shadow Minister for Foreign Affairs.
Laurie was the Minister for Industrial Relations, now it's Bob
McMullan, in case anybody hadn't noticed - Bob McMullan - m-c-m-u-l-l-e-n,
I think. But if you think, you know, there's a bit of obscurity
there, I don't think any of you could name - and Richard, you're
not allowed to take part in this - the Shadow Minister for Communications.
He's an obscure...
INTERJECTION:
Richard doesn't know either, Prime Minister. Richard, doesn't
know either.
PRIME MINISTER CONTINUES:
And then, of course, we have the comparison of the Health Minister,
Michael. And can I say, very, very seriously and very, very sincerely
what an outstanding job, in a very, very difficult portfolio, Michael
Wooldridge has done. He's an extremely valued member of my Ministerial
team. His opponent is that man - the little boy lost, we call him
- home alone from Dobell, Michael Lee.
And then, of course, we come to David Kemp's adversary. I'm
reminded of that old biblical injunction:- would that my enemy would
write a book. And, of course, David's adversary is Mark Latham.
And he's read his bible and he's written a book. The only
thing Mark Latham hasn't done, of course, is to say anything
relevant about education. And I can remember when he was appointed
as the Shadow Minister for Education, Mr Beazley ran around saying:
look, watch out Liberals, you'll be sorry you ever heard of Mark
Latham. I think Kim Beazley would be sorry that he'd ever heard
of Mark Latham. It's a great book. It actually contains some
thinking. And for the first time in two years you've seen somebody
in the Labor Party say something relevant about the future. And we're
very happy to remind the Australian people of this because Mark Latham
supports fundamental reform of Australia's taxation system. He
supports a broad-based, indirect tax. He supports the principle of
mutual obligation in welfare. He supports a progressive industry policy.
In other words, he supports all of the things that Kim Beazley, Simon
Crean and Gareth Evans totally oppose. He's a great Shadow Minister.
Ladies and gentlemen, could I finally say something, recognising that,
inevitably, in a federation, there will be some differences of emphasis
from time to time on the respective responsibilities of the Federal
and State governments. Can I something about the issue of the respective
health care responsibilities of the State and the Federal Government.
As governments we all have our responsibilities. And I think there
is a united view, certainly between myself and the Premier of Victoria
and all the other Premiers and Chief Ministers of Australia, that
we should deliver, to the Australian people, the best aged care and
the best health care system that we can.
We have our direct responsibilities. We have them for aged care and
we have them for private health insurance. And we also share responsibilities
through the Medicare agreement for the funding of public hospitals
by the State governments. And I know there have been some public disagreements
between the Federal and State governments. And I do want to say very
factually and calmly, on behalf of the Federal Government, that we
believe that the offer that we have made to the States is a fair and
reasonable one.
I understand the concern of States. Equally, I ask you to understand
the facts. I ask you to remember that the agreement that we propose,
commencing on the 1st of July this year, for a five year period, will
involve an increase of three per cent each, so that there'll
be accumulative real increase of 15 per cent over the five-year period.
And this is in a climate of zero inflation. I ask you to bear in mind
that in our general tax payments going to the States, for all purposes,
there will be an increase of almost five per cent, in real terms,
in a climate of zero inflation. I think it is a matter, undisputed,
on the public record that between 1993 and 1998, the Commonwealth
spent over $3.25 billion more on hospitals than if the 1992 levels
had continued. And the States only spent $355 million more than if
the 1992 funding levels had gone on. And that in the first and second
years of that five year period, State spending actually declined by
$500 million in 93-94 and $331 million in the following
year. And that according to my advice, Victoria, South Australia,
Western Australia, Tasmania and the Northern Territory, on adjusted
1992 dollar levels, is spending less now than was the case in those
years.
Now, I don't mention these figures other than to put, plainly
and unemotionally, on the public record what is our position. Because
the offer that we have made does represent real growth over that five-year
period. And it is a fair and defensible and reasonable offer. We have
responsibilities in the health and aged care area that go beyond our
responsibilities with the States in relation to public hospitals.
I announced last Thursday a very important expansion of the Commonwealth's
investment in the aged care area, built around the belief that the
greatest thing that we can do for the aged in Australia is to give
them the choice, for as long as possible, to remain within the secure
environment of their own homes. And the whole purpose of the policy
I announced on Thursday was to do that. And it was also a policy that
broke new ground at a Federal level in the area of providing assistance
and comfort for carers within our community. And I have to say, in
all the years that I've been in Parliament, the most moving stories
that I have had from constituents have been stories about the difficulty,
often of very elderly people caring for adult children with profound
disabilities and impairments. And nobody could be less than totally
moved and touched by those stories. They are the great unsung heroes
and heroines of any compassionate and decent society. And what they
have a right to expect from the Government and what they have a right
to expect from the entire community is a recognition, is a firm recognition
of the tremendous role that they play and also some improvement in
the material support that they receive.
And I'm very happy that, from the 1st of July this year, there'll
be a significant increase in the domiciliary care benefit. And also
that we are going to expand the respite facilities. And we're
also, over the next 12 or fifteen months, we're going to expand
the eligibility criteria for that care benefit and we're going
to combine it with the Disabled Childrens Benefit into a new carers
allowance which will have expanded criteria. So that a larger number
of people, I estimate up to 14,000 or 15,000 additional people, will
be able to qualify. This is an area of very great need. It is an area
of direct Federal Government responsibility. And it is an area in
which we are injecting more resources and more support.
I always regret, as I know my State colleagues do, any disagreements
on issues that are important to our joint endeavours. But it is the
responsibility of both levels of government, when those disagreements
occur it is the responsibility of both levels of government to put
their cases with care and with prudence, not emotionally, understated
it necessary, but nonetheless firmly, politely and factually. And
I have to say, on behalf of my Government, in that firm, polite, factual
fashion, that the offer that we have made does represent a generous
increase on the last five years. It does represent three per cent,
real, each year for five years. It does build upon an almost five
per cent real increase in the general tax money going to the States
in a climate of zero inflation. And it does have to be used against
the background of the individual spending decisions on hospitals that
have been made by all the State Governments over the past few years.
Now, I do have available as a result of work done by my staff, I do
have available, and with Michael Wooldridge's office, some material
explaining these things in more detail for any of you who would be
interested to have it.
Ladies and gentlemen, I know that in the course of Government it is
inevitable that there will be some disagreements and I think it is
important that the facts be examined in a very unemotional, and if
necessary, understated fashion.
Can I finally say, ladies and gentlemen, that in a sense returning
to what I said at the beginning of my address, and that is that we
have achieved an enormous amount over the last two years. And we've
achieved it because there has been tremendous co-operation between
all of the members of the Federal Parliamentary Party. And I want
to express to all of my Victorian colleagues, to all of you without
exception, my personal gratitude for the support and loyalty and understanding
that you have given over the last two years. There have been occasions