Thank you very much Terry. You are very gracious and over-generous and I do appreciate your very kind remarks and can I start my address today by paying tribute, a very warm tribute, to the extraordinary support and persistent loyalty and faith that Terry has displayed in the Liberal Party here in Western Australia through good times and bad, our Party has had no dearer friend than you, and thank you very much.
I would like to acknowledge Peter Middleton, the Chairman of The 500 Club, Danielle Blain, the President of the Western Australian Division of the Liberal Party and somebody who's brought great leadership skills to the organisation of the Party, my ministerial and parliamentary colleagues, both state and federal, Paul Omodei, the leader of the Opposition in Western Australia, and my good friend, and the former Premier of Western Australia, Richard Court.
It is an important moment, the 20th anniversary of the foundation of The 500 Club, and I thank all its members for the wonderful contribution you have made to the cause of the Liberal and National parties in this state. I understand your separate constitution, that is entirely a matter for you, your commitment to our cause has never been in doubt and I especially acknowledge the destination of the proceeds of this gathering, a great cause. Federal, marginal seats here in Western Australia, because at a federal level these elections come around with maddening frequency. We have three year terms federally, you have four terms at a state level. I suppose, it depends a bit, three and four year terms, whether you are in government or opposition. Oppositions seem to like three year terms, I have found on balance, governments prefer four year terms. But, anyway, whatever it is we have three year terms, we are now past the half way mark in this current term of government, the Government's fourth term. Elections get harder each time. Winning a fifth term whatever you may think about the strength of the economy, whatever you may feel about the inadequacy of our political opponents, winning a fifth election is going to be very hard. And the electoral statistics tell us a couple of things. They tell us we have an amazingly high number of Coalition seats in New South Wales and Queensland. It's a miracle that in both of those states at the last election we actually added to the number of seats we held. And we did very well in Western Australia. I think we can do even better in Western Australia at the next federal election, and I will be talking to your President and your State Director about the prospects of winning more marginal seats here in Western Australia, and that makes the contribution from today's lunch so incredibly important and special.
We do of course meet today, in what is the boom state of Australia, the boom state of Australia. And let me get it out of the way straight away, I know you have only 11 per cent of the population, but you are not only providing 29 per cent of the export income of the nation, you are carrying the whole lot of us on your back. I understand that very well, and I pay tribute to the drive and the entrepreneurial spirit of the people of Western Australia and the remarkable contribution that the prosperity of this state is making to the wealth of the nation.
Our economy is strong, it will remain strong, it will continue to grow, we will continue to keep the Budget in surplus. We'll continue to encourage business investment, and we will continue to have an economy which is the envy of the rest of the world. That shouldn't blind us, of course, to the reality that, that economy can experience sudden jolts and shocks; we had one yesterday. We had a larger than expected inflation rate. It gave new meaning to that old song about yes I have no bananas. It's a reminder, I mean, in fact, that is the problem, we had no bananas for a long time, and that caused a spike in the inflation rate. That spike, of course, is going to go, it will pass through, and it's not likely to come again any time soon. But the other cause of the high inflation rate is high fuel prices. I have to say to you in all candour that they are not going to come down in the near future, the world is stuck with high petrol prices for some time. Those high prices are due to high crude oil prices, which in turn is due to the veracious demand of China, and of course the growing demand of India, the impact of low investment in refining capacity over the years, and the large number of political challenges in places like the Middle East and Nigeria.
But it's very important that we understand the context of that figure yesterday, to understand the particular reasons that brought it about, and to understand that it underscores, in turn, the absolute essentiality of keeping in charge of the economy of this country, people who have a track record on prudent economic management. It's precisely because our economy can be buffeted from time to time by these shocks, that we need on all other occasions very strong and steady economic management. And that will remain the cornerstone of our approach and it will remain the principal difference between our claim to continuing government of this country, and the claims of our political opponents. Because we've seen in recent days an example of the relative priorities of our opponents. It is apparently believed by the Labor Party, and particularly by its leader Mr Beazley, that it's some sign of great economic credibility to finally summon the courage to challenge the absurd three mines policy of the Australian Labor Party; a policy that says that there's good uranium and bad uranium. The bad uranium, or rather the good uranium is in the mines that are already in operation, the bad uranium is all the other uranium in Australia. It's a 19th or 20th Century policy at best, and I said when I heard the announcement about the possible, policy change, that the Labor Party was merely limping towards basic commonsense in this particular area of energy policy.
Because if there's one thing that this country must do, in the world in which we now live, and that is to explore and sensibly exploit all of the energy capacity and strength that providence has given us. At a time when the world demands increased energy, and at a time when this country is uniquely placed to not only contribute to that, but to influence the way in which the world consumes energy, any policy other than a policy that puts everything on the table, including an examination of the nuclear power option, any policy that does other than that is a policy that totally and completely fails Australia's national interest.
I don't of course need to tell a Western Australian audience how important our resource sector is, and I don't need to remind anybody in this room of the extraordinary partnership that our country has forged trade wise with the nations of north Asia. If I reflect on the achievements of the Government over the last 10 years, I don't count any achievement more important than our simultaneous capacity to have forged the closest relationship that Australia has ever had with United States at the same time as claiming a very strong and growing relationship with the Republic of China, with Beijing. Because that relationship is very important to Australia's economic future, and it's a relationship that is not only based on Australia's self-interest in supplying something that China wants. But it's also based on a recognition on the party of China of the pivotal importance of Australia as a close ally of the United States. And contrary to what some of the sceptics have said, it's our very closeness to the United States which is one of the assets that we bring to our relationship with China. And it's very obvious to me in my contact with the Chinese leadership that our closeness to the United States adds value to our relationship with China.
I can't of course talk about the resource sector in Western Australia without saying something about what has been a life-long policy cause of mine, and that is the cause of industrial relations reform. We have finally got through the national parliament, a set of changes to our workplace laws, that lay the basis for the future prosperity of this country. We are prosperous today, we have strong growth, we are doing well today because of yesterday's policy changes. It's a truism that today's prosperity is a product of yesterday's reforms and so it is that tomorrow's prosperity, can only be a product of today's reforms. And that is why we are persevering with industrial relations reforms, because we know that if we stopped the reform process, that if we weary and get tired of change and reform, then our competitors are going to overtake us.
Those of you involved in the mining industry here in Western Australia, know the transformation that Australian Workplace Agreements have brought about. You understand better than probably any other industry sector in Australia, the enormous value of being able to make workplace agreements at an enterprise level to suit the circumstances of individual employers and their employees. And you know better than any, the enormous damage that will be done to the mining industry here in Western Australia and all over the nation, if it is no longer possible to have Australian Workplace Agreements. And understand that if there is a change of government federally, that will be the consequence and don't believe that all of the existing Australian Workplace Agreements are going to be allowed to remain in place. It's already being made very clear by union leaders here in Western Australia that only good or acceptable Australian Workplace Agreements, will be allowed to remain in place. So it won't just be a question of allowing the existing ones to work themselves out and there would be no new ones allowed in the future. There will also be a ruler run over the existing ones to see if, according to some self-imposed standard of theirs, those understandings and those arrangements, are acceptable.
So when I speak of the importance of the reforms that we have brought in, and these reforms are designed to lock in our prosperity for the future, we must understand the nature of the campaign that is being waged against them. A campaign that seeks to encourage Australians to believe that these laws will represent a green light for mass sackings. That's what Bill Shorten, the National Secretary of the Australian Workers' Union said. We have seen in the past few days, as a result of the work of the Office of Workplace Services, that just about every individual featuring in the ACTU advertisement about the villainy of these laws, that the arguments that they have used in that advertisement, have only been half of the story. And when the full story is told, none of the evil attributed to these laws has in fact taken place. The truth, of course, is that in the three and a half months that have gone by since the laws were introduced, we've seen an increase of 102,000 in the total number of people in work in this country, and although these figures of 4.9 to 5.0 per cent unemployment are going to bounce around a little, the reality is that for some time, we have had 30-year lows in unemployment, and there is no reason why those statistics should not continue. And there is no evidence, and there is no basis for the claim, that these new laws have made people more vulnerable. The truth is that the removal of the unfair dismissal laws of the Keating Government affecting firms with fewer than 100 people delivers on an oft-repeated promise of the Coalition, and will be seen universally in the small business community of Australia as an incentive, not to sack people, but an incentive to take on more staff, knowing that if some of them don't work out, they can be let go without $20,000 or $30,000 or even more go-away money in order to avoid an expensive day or two in court.
So these laws are unconditionally good laws, designed to lock in the economic future of our country and they are part and parcel of our commitment to continue the process of economic reform. Winning government is not only about pointing to a strong record in government, and also demonstrating the weakness and inadequacies of one's opponents, but it is also about projecting an agenda for the future. Of being able to say to people, we do have a plan and a strategy to maintain the future prosperity of this country, and part of that strategy is workplace relations reform. Another part of that strategy of course is to make sure that we exploit in a sensible manner and to the full, the enormous resource and energy endowments of this nation. And of course, part of that strategy is to maintain the remarkable improvements in industrial relations, particularly in certain industry sectors that we have enjoyed. And no industry sector has a particular Western Australian resonance, I suppose I could put it that way, than the building and construction industry, which has contributed here in this state, more than its fair share of interest and attraction. And I came across some very interesting statistics this morning when I was giving some thought to the remarks that I would address to you today, and they relate to the levels of industrial disputation. Of course over the last 10 years, we have seen a great decline in industrial disputes and strikes throughout Australia. And despite all the predictions that were made, that the workforce wouldn't cooperate with a Coalition Government, that there would be widespread mayhem and industrial disputation, the reverse has proved to be the case. And one of the reasons of course, is that real wages based on real productivity gains have risen by 16.8 per cent in the 10 and half years that we have been in power.
But can I tell you that in the building and construction industry, in the March quarter of 2006, the number of days lost through industrial disputation was 5.7 per thousand employees. And that represents an 86 per cent decline, an 86 per cent decline, on the number of days lost per thousand employees, compared with the March quarter of just a year ago, and that is 2005. And I would be immodest enough to put it to you, that that may have had something to do with the introduction of the new legislation dealing with the building and construction industry. It may have had something to do with the determination of this Government to end lawlessness in that industry, it may have had something to do with the fact that having fortuitously won a majority of one in the Senate on a good day, and that is about the best that you can describe the size of our majority, and I am indebted to Peter Costello for that very humorous description of our position; I think it is due to the fact that having won that majority we were able to get that building and construction industry legislation through. So I think it is worth making the point that legislation of that kind can bring about a change in attitude and a change in behaviour.
My friends, this country has in my lifetime, not experienced greater prosperity. Prosperity of the early part of the 21st Century, is more soundly based than the prosperity we had, great though it was, in the 1950s and the 1960s. Because in those days our economy was heavily protected, we had high tariff barriers, we had a fixed exchange rate, we had centralised wage fixation, we depended on a narrow range of export industries, great though they were, for our prosperity, it was a great country then, it's still a great country. But the prosperity today is a prosperity that we have earned in a more competitive environment. It's a prosperity built on industries that don't have tariff protection, and it's a prosperity that is built upon the hard work, and the entrepreneurial spirit of growing numbers of Australians. But it's a prosperity that can easily go, and as I mentioned at the beginning of my speech, sudden shocks and jolts can come along unexpectedly and can disturb the economic progress of the country unless the fundamental (inaudible) of economic management remain well and truly in place. And just as we were able in 1997 to work through and not be affected by the Asian economic downturn, because our fundamentals were strong, and just as in the wake of the terrorist attacks in 2001, the Australian economy remained virtually unaffected by the worldwide economic disturbances following those events, so it will be that the strength of the economic settings that we have in this country, will ensure that things like yesterday's news do not cause any lasting damage of any kind to the Australian economy.
Can I again thank all members of The 500 Club for the tremendous support that you've given to our cause over the last 20 years. We have much to do, we need to win a federal election, we need, here in Western Australia, to win a state election. That's a joint cause, it's a joint challenge, and one to which I remain very strongly committed. I thank all of you for your past help, and I look forward to much cooperation and joint endeavour in the time ahead. Thank you.
[ends]