E&OE...
I thought I'd had my morning walk already but... Mr Leon Kempler, Mr Hugh Morgan, and Mr Solomon Lew, ladies and gentlemen. And I thank you Solly for those very kind words of introduction, they were very generous and very, very, touching. This is not the first time that I have addressed this Chamber of Commerce, and I do so in the spirit of unwavering commitment to the bilateral relationship between Australia and the State of Israel. There are important economic dimensions to that relationship, and the contribution that the Chamber has made to building the strength of that bilateral economic relationship has been very important and I remember my visit to Israel in 2000 as Prime Minister at the height of the hopes that were then entertained about a settlement with the Palestinians, unfortunately those hopes were to be dashed, not through a lack of resolve and commitment on behalf of the then Prime Minister of Ehud Barak, but rather the intransigence of the Chairman of the Palestinian Council, but I do remember that visit very well, and I was accompanied by quite a number of members of the Chamber who are here today. And the Government will continue to do all it can to expand and diversify that economic relationship, but the bilateral relationship between our two societies is deeper and broader than the economic one. It is a relationship founded on common values, of the freedom and dignity of the individual, a robust commitment to democracy, and a determination to stand together against the forces of terrorism, and the forces in the Middle East that are determined to deny Israel the right to exist free from attack and molestation, and I take this opportunity of re-committing my Government to, not only a strong pursuit of a settlement in the Middle East based on the two-state solution, but also an unwavering determination to support diplomatically, not only through the United Nations, but in other ways, a proper protection of the legitimate rights of the State and the people of Israel.
Israel's courageous defence of her territorial integrity since the formation of that state back in 1948 has won the admiration of millions of people around the world, and millions of people in Australia. We respect and recognise the legitimate aspirations of the people of Palestine to also achieve statehood and independence, but it must be on the basis of proper respect and regard for the rights of people of Israel, and the undoubted right of those people and those state to exist within secure, internationally recognised, and thoroughly defensible boundaries. One would have to be a supreme optimist to believe that such an outcome is likely to be achieved in the near future. But optimism is infinitely preferable to pessimism when it comes to the Middle East, and I want to make it very clear before this gathering, that my Government remains determined to persevere with our commitment to the people of Iraq, our determination to stay a good participant in the coalition until such time as the people of Iraq, through their own security forces, are able to provide reasonably for their own security future. The alternative, and that is an outcome that would represent a perceived defeat for the United States and for the coalition in Iraq, would represent a devastating blow to the hopes of a stable future for the Middle East. It would embolden the Iranians, it would unsettle and destabilise the more moderate elements amongst the Arab states in the region, and it would represent a monumental victory for the cause of international terrorism. The idea that a coalition or American defeat n Iraq would be anything other than the most enormous boost to terrorism, not only in the Middle East, but around the world, the idea that it would be anything other than that, is very, very unsoundly based.
Now it remains very much in Australia's national interests, as well as in the interests of the cause that we hold in common with other democratic nations around the world, the fight against terrorism, that the coalition's mission in Iraq, difficult though it is, be persevered with. And to those who criticise our position, I pose a simple question, if it is legitimate and right to deny the terrorists a victory in Afghanistan, why isn't it legitimate and right to deny the terrorists a victory in Iraq?
It seems to me to be a very simple equation, but ladies and gentlemen, I have come here at your invitation to say something as I have about the personal commitment I have to the relationship between Australia and the State of Israel, and also of course to take the opportunity to pay tribute to the extraordinary commitment over generations that the Jewish community has made to the life and shaping of our nation, and it seems entirely appropriate that I should address this gathering the day after Anzac Day, because Australia has had no greater Jewish son than John Monash, and his extraordinary leadership skills rated quite rightly by Les Carlyon in his wonderful work on The Great War released only a few months ago, rated along with the Canadian General Arthur Currie as being the greatest Field Commander of World War I, a man that demonstrated extraordinary leadership skills, he is a metaphor in so many ways for the contribution that the Jewish community has made to the Australian nation.
I also want to say something about the state of Australia, something about the mood, and the sense of hope and optimism that people feel about our country. I thank Solomon Lew for the remarks he made about what has happened in Australia over the last eleven years. We are enjoying the longest unbroken, economic expansion in our history, these are the best of times for the Australian economy but they are also times that cannot be taken for granted. We don't have prosperity by accident, the prosperity we now have does not rest entirely as some would allege on the resources boom. It is wrong to suggest that only the resources boom has given us our economic prosperity, it is of course as Don Argus in his classic capacity for understatement once said to me, ‘now is a good time to be in mining', it certainly is a very, very good time to be in mining, but there is a bit more to it than that. If you look back over the last 15 years, you see major decisions as having been taken that have strengthened the underpinnings of the Australian economy.
If we could take ourselves and those in the room who are able to do it back to a period say around about 1980, we would have looked at the Australian economy and we would have said what this Australian economy needs to do is to undertake major reform in five areas. We need to deregulate our financial system, we need to do something about our high tariffs, which are not really creating a competitive environment, we need to reform our taxation system, we need to get the government out of business enterprises because governments are lousy when it comes to running businesses and finally and very importantly we need to do something about our arthritic industrial relations system.
Now they were the five great reforms that any objective observer of the Australian economy in 1980 would have said needed to be undertaken. And now 27 years later, just over a quarter of a century later, we have in fact achieved all of those major reforms and can I put it to you that it is achieving those five major reforms, more than anything else, more than the mining boom, more than anything else which is responsible for the current strength of the Australian economy where it's possible to say we have a 32-year low in unemployment. Over the last year the number of long term unemployed in Australia, that is people who have been out of work for more than 12 months has actually declined by something close to 25 per cent. And that is the real human dividend of a strong economy when people who have been struggling for years to get a job and have found it very hard finally can get a job in a very buoyant labour market.
And the importance of the commitment that has been made to reform in those areas is demonstrated by the very strong economy that we have, and as I have always done, I acknowledge that some of those reforms were carried out by the former Labor Government. And I make the point that when they proposed those reforms, they had the strong support of the Liberal and National Parties in opposition and those reforms have been built on over the last 11 years. I have to say, however, that at every turn we have been opposed by the Australian Labor Party in opposition. But I have always argued in public life that it is not only governments and it's not only political parties in government that have responsibilities for good public policy, it's also oppositions that have responsibility for good public policy. You can't expect to have credibility as a political movement if you in effect say to the Australian public ‘well don't take any notice of what I do in Opposition. I am entitled to behave as irresponsibly and as opposed to the national interest as I can while I am in opposition but once I get in government it's an entirely different matter.' You are on display and you are accountable for what you do both in opposition as well as in government.
But we have been able to reform our economy because we've moved in those five areas. But right now, one of those major changes, that is reforming our workplace relations system, is under very significant threat. If we roll back; or let me put it more precisely and very directly and unapologetically to you, if a future Labor government rolls back the workplace relations reforms that my Government has enacted under the title of WorkChoices, that will represent the first time in a generation that this country has reversed a major economic reform. And that spells bad news for the Australian economy on two accounts. It says to the Australian people that governments have lost their stomach for major reform and it also says to the rest of the world that this country is no longer committed to further economic reform in the future. Because the reality is that today's prosperity is a product of yesterday's reforms, and tomorrow's prosperity can only be based on today's reforms.
So what is at stake in relation to our industrial relations changes? And I won't weary you with the details except to make the observation that what is being proposed is a scuttling of Australian Workplace Agreements. Ironically the very resources boom that our opponents say is the foundation of our current wealth, a proposition that I dispute, but even if you accept it for the purposes of discussion, our opponents are proposing to pull away one of the central underpinnings of that resources boom, and that is the widespread use of Australian Workplace Agreements in the mining industry, especially in Western Australia but also in other parts of the country. But the cost in terms of the international reputation of this country as being a nation that is prepared to undertake important economic reforms would be very significant.
And I thought of this yesterday when my press secretary told me that I had been asked to contribute a piece as Prime Minister of Australia to a British magazine which is doing an edition assessing the legacy and the contribution of Tony Blair to British life and to international life. I like Tony Blair. He may belong to the British Labour Party and he may therefore have different views than I do on a number of issues, but I have respected Tony Blair's commitment to the international fight against terrorism, his willingness to confront where required his own party in order to argue for what he believes is in the interests of the United Kingdom. And I have also admired Tony Blair's recognition of the historic changes that have occurred in the British economy and in British society.
And undoubtedly the most seminal moment in the early years of Tony Blair's prime ministership was when he stood before the Trade Union Congress, which is the equivalent in Britain of our ACTU and said that fairness in the workplace starts with the chance of a job. And he went on to say that the industrial relations reforms that had been carried out by Margaret Thatcher's Government, which transformed the British economy from the sick economy of Europe to arguably Europe's strongest economy in 2007 that it was essential he told the Trade Union Congress that those reforms be kept in place. Because although they had been opposed by the labour movement in opposition, they were reforms that were essential to the long term prosperity of the British economy. I make no further comment on comparisons that one might seek to draw between different leaders of labour parties around the world.
Finally my friends, can I say to all of you that when you talk about the strength of an economy and when you talk about economic achievement, you should never look at it in isolation from the impact it has on people. Good economic policy, a budget in surplus, good monetary policy, low inflation, hopefully continued low interest rates; none of those things are ends in themselves. They are only means to an end. They are means to achieving what I have described as a great human dividend. And the greatest human dividend I have always believed is the dignity of work that a strong economy gives to as many as possible of its citizens. And of all the human dividends that have been achieved over the last 11 years, none has been more important than the success we have had in Australia in bringing down our level of unemployment.
Employment, a worthwhile job, provides men and women with a sense of worth and a sense of dignity and there can be nothing more soul destroying and destructive of the human spirit, especially in an apparently prosperous community which ours undoubtedly is, than the feeling that somehow or other you are missing out. And I regard that human dividend as being, after all, what good economic policy and good economic management is all about.
I leave you with the thought that whatever we have achieved over the last 11 years has more than anything been due to the spirit and hard work of the men and women of our country. People are kind enough to say things about government policy and that government policy is important. But I think what we have seen in this country over the last decade is the unleashing of an entrepreneurial spirit, a commitment to the future, a belief in self and a belief in this nation, the like of which we've not had in such measure certainly in my lifetime. Australia has always been a highly regarded nation but over the last decade or more our economic performance, our willingness to stand shoulder to shoulder with our allies and friends often in the face of great unpopularity, fighting terrorism and working to achieve just outcomes has won this country enormous respect and admiration.
I want to thank the Chamber for its contribution to the civic life of Australia. I want to thank the Chamber for the contribution it makes to that precious bilateral relationship between Australia and Israel, and I want to thank all of you very warmly for honouring me in inviting me to attend and address today's luncheon. Thank you.
[ends]