PM Transcripts

Transcripts from the Prime Ministers of Australia

Whitlam, Gough

Period of Service: 05/12/1972 - 11/11/1975
Release Date:
28/02/1975
Release Type:
Speech
Transcript ID:
3632
Document:
00003632.pdf 13 Page(s)
Released by:
  • Whitlam, Edward Gough
THE PRIVATE SECTOR AND THE AUSTRALIAN GOVERNMENT - ADDRESS BY THE PRIME MINISTER, MR EG WHITLAM QC MP, TO THE SYDNEY CHAMBER OF COMMERCE, WENTWORTH HOTEL, SYDNEY, FRIDAY 28 FEBRUARY 1975

lOpfl
THE PRIVATE SECTOR AND THE AUSTRALIAN GOVERNMENT
ADDRESS BY THE PRIME MINISTER, MR E. G. WHITLAM, M. P.,
TO THE SYDNEY CHAMBER OF COMMERCE, WENTWORTH HOTEL, SYDNEY,
FRIDAY, 28 FEBRUARY, 1975. 4
IT IS MORE THAN SEVEN YEARS AGO SINCE I FIRST
ADDRESSED, AS LEADER OF THE AUSTRALIAN LABOR PARTY, A
MAJOR CHAMBER OF COMMERCE, NOT SYDNEY BUT MELBOURNE, IN
OCTOBER 1968y .1 HAD THE REPORTS OF MY SPEECH LOOKED UPx
SI FOUND THAT MY THEME ON THAT OCCASION WAS THE SAME AS I
HAD PLANNED TO TAKE WITH YOU TODAY, I SAID THEN SEVEN
YEARS AGO " THE PROGRAM OF REFORM AND DEVELOPMENT OF
ANY FUTURE LABOR GOVERNMENT CANNOT BE FULFILLED WITHOUT
PROSPERITY IN THE PRIVATE SECTOR."' AND I[ SAID
S '; PRIVATE ENTERPRISE IN AUSTRALIA CANNOT PROSPER WITHOUT
GOVERNMENT -INITIATIVES PARTICULARLY AT THE NATIONAL LEVEL, " x
I MADE THOSE STATEMENTS SEVEN YEARS AGO AND I REPEAT THEM
O TODAYX, I DON'T RECALL THESE STATEMENTS JUST TO PROVE A
CONSISTENCY, I RECALL THEM BECAUSE IT'S TOO OFTEN IGNORED
THAT THIS APPROACH, THIS RECOGNITION OF THE INTERDEPENDENCE
OF OUR PROGRAM AND PRIVATE PROSPERITY, ISA FUNDAMENTAL
PART OF THE PHILOSOPHY OF THE AUSTRALIAN LABOR PARTY IN OR
OUT OF OFFICEk SEVERAL MINISTERS IN MY GOVERNMENT, IN
PARTICULAR THE TREASURER AND I, HAVE IN RECENT WEEKS BEEN
EMPHASISING THE NEED TO RAISE PROFITABILITY. IN THE PRIVATE
SECTORx 1

-2-
IN SOME QUARTERS THIS HAS BEEN DEPICTED AS A REVERSE,
IN OTHER QUARTERS AS A CONVERSION SOME MIGHT HOPE A
DEATH-BED REPENTANCE, IT IS NOTHING OF THE SORT. IT
EXPRESSES A VIEW I HAVE BEEN PUTTING, AS I HAVE JUST
EVER SINCE I BECAME LEADER OF THE AUSTRALIAN LABOR
PARTYx OUR CURRENT EMPHASIS ON PROFITABILITY REFLECTS
A RESPONSE WITHIN THE FRAMEWORK OF A CONSISTENT PHILOSOPHY
TO THE PARTICULAR NEED OF THE PARTICULAR TIME. WE HAVE
NEVER LOST SIGHT OF THAT INTERDEPENDENCE, OF WHICH I
HAVE JUST SPOKEN, JUST AS WE HAVE NEVER LOST SIGHT OF OUR
GOALS FOR AUSTFALIAx As I* AM RECALLING PAST SPEECHES I
CAN DONO BETTER THAN REFER TO THE FIRST MAJOR SPEECH I
MADE AS PRIME MINISTER TO A REPRESENTATIVE CROSS SECTION
OF AUSTRALIAN BUSINESS AT A METAL TRADES INDUSTRIES
ASSOCIATION SEMINAR IN JUNE 1973x I SAID, ". THE ASSURANCE
I GIVE YOU IS THAT WE FULLY RECOGNISE THE INTERDEPENDENCE
OF A LABOR GOVERNMENT AND PRIVATE BUSINESS. I ACKNOWLEDGED
IN MY POLI. CY SPEECH THAT WE COULD NOT EXPECT THAT OU. R
SOCIAL PROGRAM COULD BE FINANCED WITHOUT A SIGNIFICANTLY A
INCREASED GROWTH RATEx AUSTRALIA HAD BEEN STUMBLING
ALONG WITH A PALTRY GROWTH RATE OF 3 PER CENT OR SO. I
SAID THEN THAT WE WOULD NEED TO ACHIEVE A GROWTH RATE OF
6 TO 7 P'ER CENT IF OUR PROGRAM WA8. TO BE IMPLEMENTED
WITHOUT VASTLY INCREASED TAXATION.* WE SHALL PROBABLY
ACHIEVE A RATE HIGHER THAN 7 PER CENT THIS YEAR,, WE CAN
ONLY ACHIEVE SUCH A RATE IF ALL SECTORS OF THE COMMUNITY,
NOT LEAST THE PRIVATE SECTOR, IS PROSPEROUS, EFFICIENT
AND FULLY EMPLOYEDx -I 4

-3-
" You NEED A PROSPEROUS ECONOMYw So DO Ix. I KNOW VERY
WELL I CANNOT ACHIEVE A MOIETY OF WHAT I WANT TO ACHIEVE
FOR THE PEOPLE OF THIS COUNTRY DECENT SCHOOLS, DECENT
HOSPITALS, DECENT CITIES, DECENT PROVISION FOR THE SICK*
THE AGED AND THE HANDICAPPED WITHOUT YOUR PROSPERITY"
YOU MIGHT SAY THAT OUR PRESENT EMPHASIS ON THE
PRIVATE SECTOR AND OUR PRESENT PREOCCUPATION WITH THE
PROBLEMS OF THE PRIVATE SECTOR REPRESENT A PROFOUND CHANGE
OF PHILOSOPHYx I THINK I. AM ENTITLED TO SAY THAT IT
DOES NOT, BUT THAT IT DOES REPRESENT AN INTELLIQENT CHANGE
OF EMPHASIS IN A RAPIDLY CHANGING SITUATIONI IT WOULD BE
INTOLERABLE IF IN THE CIRCUMSTANCES PREVAILING THROUGHOUT
THE WORLD TODAY, GOVERNMENTS WERE TO BE ACCUSED OF
ERRATIC CONDUCT, OF RECKLESS CHOP-AND-CHANGE BECAUSE THEY
TAKE NEW INITIATIVES OR ABANDON POLICIES APPROPRIATE TO
OTHER CONDITIONS. IT WOULD BE INTOLERABLE IF GOVERNMENTS
WERE TO BE'SCARED OFF FROM MAKING CHANGES BY SUCH
ACCUSATIONSx THE FACT IS THAT CHANGE IS OCCURRING WITH
A GREATER SPEED THAN EVER BEFORE, AND ALL GOVERNMENTS
HAVE TO MAKE CHANGES WITH GREATER SPEED AND FREQUENCY THAN
EVER BEFOREx IT APPEARS THAT THERE HAS BEEN A PROFOUND
ALTERATION IN THE NATURE OF THE BUSINESS CYCLE, NOT ONLY
IN AUSTRALIA. BUT THROUGHOUT THE WORLDx NOT SO LONG AGO
IT TOOK THE BUSINESS CYCLE ABOUT FIVE OR SEVEN YEARS TO
OCCUR IN ALL COMPARABLE COUNTRIES, -NOW THE FULL CYCLE
TAKES A COUPLE OF YEARSx 4*

ACCORDINGLY, THE DECISION-MAKING PROCESS FOR GOVERNMENTS
AND FOR BUSINESS ALIKE IS SUBJECT TO QUITE EXTRAORDINARY
AND UNPRECEDENTED STRAINS) NONE OF US IN OUR LIFE-TIMES
HAVE-EVER BEFORE FACED THIS CONTINUING NEED FOR
RE-ADJUSTMENT OF POLICIES AND PLANS FOR WHICH THE NEW
PHENOMENON OF A TWO YEAR BUSINESS CYCLE IMPOSES ON ALL OF
US, WE'VE ALL BEEN CALLED UPON TO* CHANGE THE DIRECTION OF
POLICIES AND PLANS MORE FULLY AND FREQUENTLY THAN EVER
BEFOREx IT IS EASY ENOUGH TO BLAME GOVERNMENTS FOR* THIS
CHANGE AND IT IS EASY ENOUGH, I SUPPOSE, FOR PEOPLE IN
GOVERNMENT TO BLAME THE PRIVATE SECTORx I THINK, HOWEVER,
IT IS TIME. WE ALL ROSE ABOVE A DEBATE WHICH MERELY SEEKS
TO ALLOCATE BLAMEx THERE IS VERY OFTEN A'NEED' ON BOTH
SIDES FOR PLAIN SPEAKING IT IS OFTEN NECESSARY TO STATE
UNPALATABLE FACTSx FOR EXAMPLE, IT GIVES ME NO
PARTICULAR PLEASURE TO GO TO A LABOR PARTY CONFERENCE AND
POINT OUT THE PRESENT RELATIONSHIP BETWEEN WAGE INCREASES
AND INFLATION AND UNEMPLOYMENTx BUT A STATEMENT OF PLAIN
FACT SHOULD NOT BE DESCRIBED AS UNION BASHING JUST AS WHEN
I STATE FACTSWHICH MAY BE UNPALATABLE TO YOU, I DON'T
EXPECT TO BE ACCUSED OF BUSINESS BASHINGA IN RECENT
MONTHS WE HAVE LAID THE FOUNDATIONS, AS A GOVERNMENT, FOR
A NEW DIALOGUE BETWEEN THE PUBLIC AND PRIVATE SECTORS.
WE WANT TO BUILD ONTHESE FOUNDATIONS TO ESTABLISH HEALTHY
COMMUNICATION TO USE THE DIPLOMATIC CLICHE FULL AND
FRANK EXCHANGE" x 8

IT IS POSSIBLY TRUE THAT IN THE PAST THE GOVERNMENT
HAS OVER-ESTIMATED THE FLEXIBILITY OF INDUSTRY TO
-ADJUST TO CHANGEA IT IS PROBABLY EQUALLY TRUE THAT
THE PJRIVATE SECTOR HAS UNDER-ESTIMATED THE GOVERNMENT'S
OWN FLEXIBILITY. WE SHOULD ALL TRY TO UNDERSTAND TE FORCES
WHICH MAKE FOR UNCERTAINTY IN THIS NEW ERA OF CHANGE IN
WHICH WE LIVE, THE FIRST FACTOR IS THE EXTRAORDINARY
INFLATIONARY FORCES PREVAILING THROUGHOUT THE WESTERN
WORLD IN RECENT YEARS FORCES WELL UNDER WAY BEFORE.
THE OIL CRISISA THERE HAVE BEEN QUITE FUNDAMENTAL
CHANGES IN SOCIAL ATTITUDES., CHANGES IN PEOPLE'S
EXPECTATIONS, CHANGES IN PEOPLE S PATIENCE IN ACHIEVING
THEIR EXPECTATIONSx THERE HAVE ALSO BEEN CHANGES IN
BASIC INDUSTRIAL ATTITUDES, THINGS LIKE THE GROWTH OF
SHOP-FLOOR MILITANCY AND A tHALLENGE TO TRADITIONAL
CONCEPTS OF UNION LEADERSHIP. WHEN BUSINESS DEPLORES
THE UNCERTAINTY OF THE TIMES IT SHOULD-ALSO REFLECT
THAT GOVERNMENT DECISION-MAKING IS SUBJECT TO THE SAME
PRESSURES, THE SAME UNCERTAINTIESx IT'S POINTLESS TO
BLAME GOVERNMENTS FOR THOSE UNCERTAINTIES WITH WHICH
GOVERNMENTS THEMSELVES HAVE TO GRAPPLE JUST AS'MUCH AS
BUSINESS)(

-6-
I HAVE BEEN AT SOME PAINS TO TRY TO UNDERSTAND
CIRCUMSTANCES WHICH MAY HAVE GIVEN RISE TO SOME
MISUNDERSTANDING BETWEEN BUSINESS AND GOVERNMENT IN THE
PAST'FEW YEARSK PERHAPS THE FIRST FACTOR WAS THE MERE
FACT THAT WE HAD BEEN OUT FOR 23 YEARSK THERE WERE FEW
BUSINESSMEN WHO HAD ANY EXPERIENCE OF LABOR I'N GOVERNMENT
AND THERE WERE NOT MANY WELL ESTABLISHED LINES OF
COMMUNICATION BETWEEN BUSINESS AND THE LABOR PARTYX
UNDOUBTEDLY THERE WERE UNFOUNDED PRECONCEPTIONS AND
PREJUDICES ON BOTH SIDESK
WITH THIS BACKGROUND IT IS PERHAPS NOT SURPRISING
THAT COMMUNICATION WAS OFTEN INEFFECTIVEA ANOTHER FACTOR
WAS THE ENTHUSIASM AND THE SENSE OF MISSION OF THE NEW
GOVERNMENTX IT MAY BE THAT BUSINESS WAS SURPRISED THAT
WE MEANT WHAT WE HAD SAID4 THE BROAD RANGE OF POLICY
INITIATIVES . AND CHANGES WHICH WE INITIATED AT FIRST
EXHILARATED MOST PEOPLE, IF ONLY BY INVIDIOUS COMPARISON 4
WITH THE STAGNATION OF PREVIOUS YEARS CONTINUATION OF
THESE INITIATIVES AND CHANGES BECAME DIFFICULT TO ABSORBA
I CONCEDE THAT IT BECAME DIFFICULT TO KEEP UP WITH THE\.
SCOPE AND PURPOSE OF OUR POLICIES.' S, ,7/ S

-7-
THE SCOPE AND SPEED OF THE GOVERNMENT'S
DECISIONS HAVE MADE IT DIFFICULT FOR PEOPLE TO ACQUIRE
A DEFINITE PERSPECTIVE OF THEGOVERNMENT'S OVERALL
PROGRAM AND INTENTIONSx IN THIS CONTEXT IT WAS EASY FOR
PEOPLE TO GENERALISE A VERY SPECIFIC GRIEVANCE OR REACT
ON THE BASIS OF TRADITIONAL PREJUDICES ABOUT THE
AUSTRALIAN LABOR PARTYx I HAVE OFTEN DETECTED A VIEW
AMONGST THE BUSINESS COMMUNITY THAT LABOR PARTY POLICY
HAD CONSPIRATORIAL OVERTONESK SOME HAVE BELIEVED THAT
WHILST PUBLIC STATEMENTS OF LABOR SPOKESMEN HAVE BEEN
EMINENTLY RESPONSIBLE, SOMEHOW LURKING IN THE MINDS OF
MEMBERS OF THE PARTY WAS A SECRET DESIRE TO CONTROL
EVERYTHING BY OUTRIGHT NATIONALISATION OR BY STEALTHx IT
IS PERTINENT TO NOTE THAT DURING THE PERIOD OF THE LABOR
GOVERNMENT THERE HAS BEEN NO INITIATIVE TO NATIONALISE
ANY INDUSTRYx THERE WILL NOT BE. WE HAVE TAKEN STEPS
TO PROVIDE PUBLIC SECTOR COMPETITION IN AREAS HITHERTO
EXCLUSIVELY PROVIDED FROM THE PRIVATE SECTORx ' 4.
FOR AS LONG AS I HAVE BEEN A MEMBER OF THE
AUSTRALIAN LABOR PARTY, IT HAS BEEN COMMITTED TO THE
CONTINUATION OF A MIXED ECONOMYx CLEARLY WE WANT
GREATER PUBLIC INITIATIVES THAN OUR OPPONENTSx BUT THE
CONTINUANCE OF THE'MIXED ECONOMY HAS NOT BEEN SERIOUSLY
QUESTIONED FOR MANY YEARSx IT IS TRUE THAT THE ROLE OF
PROFITS HAS NOT BEEN PART OF OUR. RHETORIC BUT WE HAVE
ALWAYS ACCEPTED, AS WE MUST, THE ROLE OF THE PROFIT
MOTIVE IN A MIXED ECONOMYx 8/.

-8-
AT THE RECENT TERRIGAL CONFERENCE, THIS WAS EXPLICITLY
ACKNOWLEDGED FOR THE FIRST TIME IN THE LABOR PARTY
PLATFORM HOWEVER, THE VERY REAL COMMITMENT OF THE
AUSTRALIAN LABOR PARTY TO A MIXED ECONOMY IS OF MUCH
LONGER STANDING THAN THATv
MOST OF OUR MAJOR DECISIONS FALL WITHIN THE CONTEXT
-OF TWO BROAD POLICY OBJECTIVES OBJECTIVES WHICH HAVE
CHARACTERISED THE LABOR PARTY SINCE IT WAS ESTABLISHED AND
WHICH DISTINGUISH THE LABOR PARTY FROM ITS OPPONENTSX
THESE OBJECTIVES ARE: THE EXTENSION OF THE PUBLIC SECTOR
AND THE RE-DISTRIBUTION OF INCOMES TO PROMOTE PUBLIC
QUALITY AND PRIVATE EQUALIiY$ OF COURSE SUCH OBJECTIVES
ARE SUBJECT TO THE CONSTRAINTS OF THE GROWTH OF THE ECONOMY
AND THEY CAN ONLY BE ACHIEVED GRADUALLY IN A MIXED ECONOMYK
WE HAVE NO INTENTION TO ACHIEVE EITHER OF THESE AT THE
EXPENSE OF THE PRIVATE SECTOR WHICH PROVIDES SO IMPORTANT A
DYNAMIC IN OUR ECONOMYx
I FOUND WITH SOME SURPRISE, THAT ONE COMMENT IN
THE TREASURER'S 1974 BUDGET SPEECH WAS SO WIDELY MISINTERPRETED)
HE SAID THEN " THE RELATIVELY SUBDUED CONDITIONS UNDER
PROSPECT IN THE PRIVATE SECTOR PROVIDE THE FIRST REAL
OPPORTUNITY WE HAVEHAD TO TRANSFER RESOURCES TO THE PUBLIC
SECTOR." 1. 19/,.

-9-
THIS WAS INTERPRETED BY SOME AS A THREAT TO
THE PRIVATE SECTORx IT WAS NOT INTERPRETED IN THE
LIGHT OF A CLEAR OBJECTIVE, WHICH I HAVE MENTIONED ABOVE,
TO EXPAND THE PUBLIC SECTORv
THE GOVERNMENT'S COMMITMENTS IN SUCH AREAS AS
EDUCATION, HEALTH, AND WELFARE CLEARLY IMPLIED THIS
AND SHOULD HAVE COME AS A SURPRISE TO NO-ONEA YET IN.
THE FINANCIAL YEAR 1973/ 74, THE PROPORTION OF GROSS
DOMESTIC PRODUCT EXPENDED IN THE PUBLIC SECTOR
ACTUALLY FELL FROM 32.3 PER CENT TO 31.6 PER CENT,, THIS
OCCURRED DESPITE THE EFFORTS OF THE GOVERNMENT TO LAUNCH
ITS NEW PROGRAMSx WE WERE FRUSTRATED BY-THE QUITE
EXTRAORDINARY SHORTAGES PREVALENT IN THE ECONOMY DURING
THAT PERIQDx To QUOTE ONLY ONE EXAMPLE -OUR OBJECTIVE
TO PROVIDE BETTER HOUSING FOR LESS WELL OFF SECTIONS OF
THE COMMUNITY WAS FRUSTRATED BY SHORTAGES OF MATERIAL AND
LABOUR IN THE HOUSING SECTORX' THE " SUBDUEDCONDITIbN"
TO WHICH THE THEN TREASURER MADE REFERENCE WAS NOT A
THREAT TO THE PRIVATE SECTOR SO MUCH AS A RECOGNITION
THAT THE EXCESS DEMAND WHICH HAD EXISTED UNTIL THEN WOULD
DISAPPEAR

WE DID NOT PREDICT AT THAT TIME THE QUITE
EXCESSIVE AND RAPID DOWNTURN IN THE PRIVATE SECTOR THAT
HAS OCCURRED THE BUDGET WAS CRITICISED AT THE TIME
AS BEING TOO EXPANSIONARYw IN RETROSPECT WE CAN SEE
THAT IT WAS NOT EXPANSIONARY ENOUGHX THIS DEFECT WAS
CORRECTED BY THE MEASURES ANNOUNCED ON 12 NOVEMBER
WE RECOGNISE THAT THE PRIVATE SECTOR IS THE PRINCIPAL
AVENUE OF EMPLOYMENT IN THIS COUNTRY AND OUR DECISIONS
SINCE THE PRESENT POSITION EMERGED., HAVE CLEARLY INDICATED
THAT THE REVIVAL OF THE PRIVATE SECTOR IS ESSENTIAL FOR
O THE RESTORATION OF FULL EMPLOYMENT,
STo THIS END, WE HAVE TAKEN A NUMBER OF MEASURES
WHICH HAVE FOUR BROAD OBJECTIVESx FIRST, WE HAVE
SUBSTANTIALLY EXPANDED THE AVAILABILITY OF MONEY FOR THE
PRIVATE SECTOR. SECONDLY, WE ARE LIFTING CONSUMER DEMAND
THROUGH A SUBSTANTIAL REDUCTION IN PERSONAL INCOME TAX,
THIRDLY, WE ARE SEEKING TO ATTACK INFLATION BY REDUCING
S THE PRESSURE FOR WAGE INCREASES THROUGH A SUBSTANTIAL
IMPROVEMENT IN AFTER-TAX TAKE-HOME PAYx FINALLY, WE HAVI
SOUGHT TO ENHANCE PROFITABILITY BY A REDUCTION IN COMPANY
TAX, BY REQUESTING THE PRICES JUSTIFICATION TRIBUNAL TO GIVE
PARTICULAR CONSIDERATION TO THE ADEQUACY OF RETURNNON CAPITAL
AND BY URGENTLY INVESTIGATING THE IMPLICATIONS OF RAPID
INFLATION. FOR THE TAXATION OF COMPANIES/ THE REPORT OF THE
MATHEWS COMMITTEE IS EXPECTED SOON AND ACTION ON ITS
RECOMMENDATIONS WILL BE PROMPT/ . WE RECOGNISE THE EXTRAORDINARY
IMPACT OF RAPID INFLATION ON CORPORATE TAX RULES, PARTICULARLY
WITH RESPECT TO STOCK VALUATION AND DEPRECIATIONX 1I II I I " I 1l

-11-
I REFERRED TO THE CONDITIONS OF UNCERTAINTY
WITHIN WHICH BOTH GOVERNMENTS AND BUSINESS HERE AND
SAROUND THE WORLD ARE CURRENTLY FORCED TO OPERATEx
IN AUSTRALIA IT MUST BE SAID THAT THERE IS A SPECIAL
FACTOR OF UNCERTAINTYe THAT IS THE POLITICAL UNCERTAINTY
CREATED BY THE CONTINUING THREAT OF A NEW ELECTIONS WE
ARE CONFRONTED WITH A SITUATION BY-WHICH AUSTRALIA COULD
HAVE NATIONAL ELECTIONS EVERY SIX MONTHSy THIS IS BAD
FOR GOVERNMENT AND IT IS BAD FOR BUSINESSw WHAT
BUSINESSMAN AMONG YOU COULD PLAN ON THE BASIS OF THE NEXT
9 .4
SIX MONTHS ONLY? WHAT BUSINESS COULD OPERATE UNDER THE
THREAT OF-A TOTAL CHANGE IN MANAGEMENT EVERY-SIX MONTHS?
IT IS NOT ONLY THAT THIS THREAT, THIS HARRASSMENT, THIS
WAR OF NERVES, MAKES THE BUSINESS OF GOVERNMENT DOUBLY
DIFFICULT; IT IS NOT JUST THE DIFFICULTY THE THREAT ADDS
TO EFFECTIVE PLANNINGx THE ELECTION PROCESS ITSELF
REQUIRES A SUSPENSION OF THE NORMAL BUSINESS, OF THE
NORMAL ADMINSITRATION OF GOVERNMENTw DECISIONS WHICH " 4
SHOULD BE TAKEN ARE NOT TAKEN WORK THAT SHOULD BE DONE
IS NOT DONEx. THEWHOLE MACHINERY OF GOVERNMENT AT BOTH.
THE POLITICAL AND THE OFFICIAL LEVEL HALTS IN KEY AREAS
AND SLOWS DOWN; IN ALL AREASx
THIS INTERRUPTION CAN BE THE MORE DAMAGING WHEN
AN ELECTION COMES OUT OF THE NORMAL TIME AND IT IS DOUBLY
DAMAGING IN THESE TIMES OF VERY RAPID CHANGE WHEN
GOVERNMENTS MUST ADAPT AND REACT TO THAT CHANGE WITH SPEED
AND VIGOURx

-12-
THE FACT IS THAT THE MAY ELECTIONS MEANT A VIRTUAL SUSPENSION
OF NORMAL GOVERNMENT FOR NEARLY THREE MONTHS; AND THOSE
MONTHS OF APRiL-MAY-JUNE WERE OBVIOUSLY CRITICAL IN TERMS OF
ECONOMIC POLICY-MAKINGx AS A MATTER OF PROPRIETY I
INSTRUCTED MY MINISTERS TO MAKE NO MAJOR DECISION UNTIL THE
PEOPLE HAD MADE THEIR DECISION, AND MADE IT CLEAR THAT OUR
DECISIONS WOULD NOT COMPROMISE OR I'NHIBIT AN* INCOMING
" GOVERNMENTx o..
EVEN WHEN THE ELECTION RESULTS WERE CLEAR AND
ee
BELIEVE THAT THE TEN DAYS OF UNCERTAINTY WHICH FOLLOWED
POLLING DAY, NOT BECAUSE OF ANY REAL DOUBT ABOUT THE
MEANING OF THE PEOPLE S DECISION, BUT BECAUSE OF THE VAGARIES
AND COMPLEXITIES OF OUR ELECTORAL SYSTEM, WERE THOROUGHLY
DAMAGING TO AUSTRALIA AT HOME AND ABROAD THERE WAS THE
FURTHER INTERRUPTION OF THE JOINT SITTING, IT WAS A
TOTALLY UNNECESSARY INTERRUPTION IN THAT THE OUTCOME OF THE
JOINT SITTING WAS A FOREGONE CONCLUSIONx I DO HOPE THAT
THE DAMAGE DONE, THE UNCERTAINTY CREATED BY THIS THREATENED
DISRUPTION OF OUR NORMAL AND ACCEPTED AND TESTED
CONSTITUTIONAL PROCESSES AND CONVENTIONS IS THOROUGHLY
UNDERSTOOD BY ALL AUSTRALIANSX THE DEMOCRATIC SYSTEM IS
EVERYWHERE UNDER CHALLENGE AND GREAT STRESSA IT'S NO
COINCIDENCE THAT THE CAPITALIST SYSTEM IS EQUALLY AND
EVERYWHERE UNDER CHALLENGE AND GREAT STRESS), ,13/,

.: t SYou MIGHT PONDER HOW LONG OUR DEMOCRACY CAN PREVAIL
UNDER THESE REPEATED ASSAULTS, ASSAULTS WHICH, AS
SIR. ROBERT MENZIES HAS SAID, " WILL MAKE POPULAR,
DEMOCRACY UNWORKABLE" x AND YOU MIGHT PONDER HOW LONG
CAPITALISM CAN SURVIVE IF POPULAR DEMOCRACY DOES NOT I
SURVIVEx I VENTURE TO SUGGEST THAT THE VACUES YOU
UPHOLD WILL NOT GO UNCHALLENGED IF THOSE WHO SEEK CHANGE
THROUGH THE PARLIAMENTARY SYSTEM LOSE FAITH IN THE
CAPACITY OF THAT SYSTEM TO PROVIDE PEACEFUL CHANGE
~ 1

3632