EMBARGO: 7.15 P. M,
NATIONAL BROADCAST BY THE PRIME MINISTER OF AUSTRALIA,
MR. E. G. WHITLAM, SUND) AY 22 JULY 1973
On Tuesday I shall be flying to North America, primarily
to attend the meeting of the 32 Commonwealth Heads of Government in
Ottawa,. Before leaving I want to explain to you the reasons for the
Government's historic decision which I announced this week with my
colleague, Cairns to make an immediate reduction of 25 per cent
in all tariffs on goods imported into Australia. I want to tell you
also of the Government's policies on a matter that concerns us all
the world-wide problem of inflation.
First, our tariff cuts. Our purpose is simply to allow
imported goods to come into Australia more cheaply and in greater
quantities. This means that a whole range of imported products will
cost less to the Australian consumer. It means keener, healthier
competition for Australian industries producing similar goods.. This
in turn will encourage those industries to bring down their prices
as well. So that is our aim: cheaper imports, more goods for people
to buy, more competition, lower prices. There are five million
wage and salary earners in Australia. They, and their families, are
the people who have suffered most from rising prices. They are the
people who will benefit first, and most directly, from our decision.
When my Government came to office just over seven months ago,
inflation was runnin~ g at its highest level for 20 years. I mention
that, not in an attempt to shufL" fle off responsibility onto our
predecessors, but to remind you that inflation is, and always has
been, a problem for all political partiesw And$ as you know, it is
a problem for nearly all the major western industrial nations.
Including our friends in Britain, the United States and Japan They
knows as we do,, that there is no one quick or easy solution. For
example, it is not constitutionally possible for the Australian
Government to introduce a prices freeze in peacetime, although the
State governments could,. It is not constitutionally possible in
peacetime for the Australian and State governments, singly or
together, to freeze all wages.,
In other ways dontt forget our economy is in a sound
and remarkably robust condition,. We have, for a start, eliminated the
serious unemployment which faced us when we came to office. Demand
for labour is high. Business is booming. Consumer spending is
running at very high levels. Our overseas reserves are immensely
strong that indeed is one of the causes of our inflation problem,
although to our current advantage, the reserves make it possible for
us to pay easily for more imports., In most respectss, we have never
been more prosperous than we are now.
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None of us, however, can remain indifferent to the
inflationary pressures that are pushing up prices. Inflation is
harmful to every Australian. It is harmful to pensioners and those
on fixed incomes: it is harmful to those with savings. It is
harmful if I may take a selfish example to my own Government,
because it makes it more difficult for us to implement, as promptly
as we would wish, the great social reforms in housing, education,
health, transport and the cities, to which we are pledged. When
people talk glibly about cutting Government expenditure, they mean
that we should be content to do little or nothing about the very
things you elected us to do.
For all those reasons we have taken action without delay
to reduce inflationary pressures. I might say that my colleagues
and I have been deeply encouraged by the reception our measures
this week have met from most sections of the community. The
business community, the leaders of the trade union movement, have
both shown themselves sympathetic and understanding and where it
may create difficulties for them, forebearing in the face of the
difficult decision we have taken. We are confident that we can
count on their co-operation to implement our policies successfully.
Of course we are well aware that our tariff reforms can
entail hazards for some Australians. We know they are bound to
affect production and employment in certain industries. That is why
we have set up a tribunal which will be able to hear immediatelyappeals
from any organisation representative of employers and
employees who may be seriously affected. We are equally determined
to protect the jobs and livelihoods of Australian workers. My
Government did not restore full employment in this country merely
to take it away again even from a section of workers. Any person
who may lose his job as a result of our changes will be entitled to
receive, as special readjustment assistance, a weekly amount equal
to his average wage in the previous six months until he obtains
alternative employment. If necessary we will offer to retrain him
in a new, perhaps better, occupation. We have provided $ 25 million
to pay for the assistance which may be necessary as a result of our
tariff reforms. Above all, you may be sure that we shall remain
flexible and co-operate i~ n carrying out these reforms.
In our attack on inflation, success depends on the
co-operation of the whole community. One way we can all co-operate
is by being more vigilant about price movements. Here is a way
that every housewife, every consumer can help. If you know of
cases where tariff cuts are not passed on to the consumers tell
us about them, or tell your member of Parliament. The Government
will ensure that consumers get the benefit of our tariff reduction.
Remember, this is not the only measure we have taken to
attack inflation. The revaluation of the dollar last December was
a first step: the establishment of the Prices Justification Tribunal,
which will come into operation in 10 days time, was another. I am
confident that all these measures will allow us to keep inflationary
tendencies under control, to safeguard the prosperity which
Australians now enjoy, and to lay the foundations for the great
social reforms we are determined to carry out for the benefit of
all Australians.