N EMBARGOED AGAINST DELIVERY JAUSrRAL1A
TEXT OF ADDRESS BY THE PRIME MINISTER AT THE VICTORIAN
STATE COUNCIL
The Liberal Party's victory in the Federal election last
December and now in Victoria should make us all very conscious
of the enormous responsibility which falls on us. It is not a
responsibility to be taken ' lightly. We not only have an
obligation to provide Australia and Victoria with good government
but the Federal and State Liberal Parties have been entrusted
by the people with the vital task of bringing inflation under
control and once more providing , the conditions in which there are
jobs for all who want to work. That is our pre-eminent
responsiblity at the present time.
The basic strategy of the Federal Government in this task is to
transfer resources from the Federal Government back to individuals
and private enterprise, where these resources will ease the
pressure for higher wages and create more jobs. Excessive Government
spending under Labor led to ever higher taxes on both individuals
and private enterprise. Alongside other policies these taxes
pushed people to ask for higher wages. These taxes drained away
from both large and small businesses the money needed to create
jobs.
The first step towards prosperity is for Government to take a
responsible attitude to its own spending. On that basis people
can once more have the confidence to spend and Australia can
start moving forward to real economic growth again.
I have said that this is going to be a tough budget. In the past,
when other Governments have said they were going to have a tough
budget, what they have meant is more taxes more money for the
government, and less money for people. Our budget is not going
to be that kind of budget. For a change, it is going to be a
tough budget for the Government. The Government will for the
first time in three years show responsibility in its own spending.
We are absolutely determined to have a budget which will give
people the confidence to spend and business the confidence to
invest a budget which will put money back in the hands of people.
Economic recovery jobs and prosperity will only be complete
if consumers and producers have confidence. * Only a budget that
requires the Government to take a tough-line with its own spending,
that takes hard decisions about the limits on Government resources
will enable the measures to be introduced which will give people
this confidence. / 2
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Only a budget which forces the Government to take a tough line
on its own spending will give the private sector room to expand.
That is the way to get investment, jobs and an increase in
Australia's real wealth.
The Government's budgetary decisions will be based on the
realistic view that Government should not keep taking money from
individuals and private enterprise in order to promise the things
that the Labor Party extravagantly and irresponsibly offered.
The Government's restraint of its own expenditure will give
business room to expand and make jobs available for all those who
want to work. The Government's restraint will provide the
opportunities for individuals and business that have been denied
to them by Labor's policies of high taxes and lavish uncontrolled
spending. Fro the polnt of view of the people this Will be a good budget,
that will put the heart back into business and consumer confidence.
The Government will do its part. Every other section of the
Australian community must do its part. People must be willing to
invest in productive enterprises. Businesses must be willing to
take development decisions. Consumers must overcome their unfounded
reservations about the future when a family buys a washing machine
or new car'it is providing jobs. When a'family postpones
expenditure it would normally make and when every family in
Australia does the same thing, unemployment must result.
Our job is to give people confidence in the future so that through
their renewed spending new jobs can be created once more. In
this way we will increase Australia's real wealth and prosperity.
The room for growth that our Government's restraint will allow,
extends beyond budgetary matters. We are going to stop Government
bureaucracy stifling individual initiative and business enterprise
by over-regulation regulation that is in no-one's interests
except the regulators. We are having an inquiry into trade practice.
regulations and we will remove unreasonable and unnecessary
. restrictions. There must and will be, protection for the consumer
but the rules must actually protect the consumer. Restrictiong,
regulationsi are not for this Government, ends in themselves.
Those regulations that are not in the public interest will be
removed. For example, companies have gone into liquidation
because the laws, as they now stand, have prevented them merging
with another. viable enterprise. Productive capacity and jobs have
been lost through unwise regulations
Restrictions which are contrary to the national interest, which
serve neither consumer or producer, will be discarded. Industry
needs to-be allowed to breathe to expapd, to grow. Under Labor,
regulation was getting out of hand. No wonder there was no
investment and major unemployment. Only if real economic growth
can be got under way can the position of the disadvantaged and
weaker sections bf the community be improved.. This must be
realised and explained to the general community if people are going
to fully understand what the Liberal Party stands for, and what
it can achieve.
Since its overwhelming rejection by. the Australian people the Labor
Party and its apologists have attempted to build up the myth that
Labor was a reforming social democratic Government, full of concern
for the disadvantaged and those in real need. People should be
aware that the real record of the Whitlam Government is far from
this. The truth of this is that the Labor Party has done great
damage to the disadvantaged and weaker sections of the community by
its policies over the last three years. 1.
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It was -far less concerned for the disadvantaged that it was for
its dream of centralising all political power in Canberra.
Labor's record as it affected the poor was examined in the report
of the Inquiry into Poverty. The Report of the Inquiry into
Poverty st~ ated quite plainly that inflation contributed to
poverty in Australia. " No country with a continuing inflation
rate of over 10% has been able to prevent this causing grave
harship to important groups of poor people". The Report emphasised
the danger of governments: " falling into the inflationary trap of
attempting to carry out so many social reforms or other public
expenditures at once that they accelerate an inflationary spiral
that does more damage to poor people than the assistance provided
by the reforms". This has happened in Australia in the last
three years. As a result of the inflation caused by Labor's
policies, the position of the weaker sections of the community has
got worse. That is why the report on poverty concluded that:
" 1one element essential in any programme to reduce poverty in
Australia is that the rate of inflation be brought under control"
I have stated before that the Liberal-National Country Party
Government has an absolute determination to bring inflation in
Australia down. This is not only because inflation is essential
to get Australia moving forward again, but it is also because it
is absolutely essential as part of our determination to assist
the disadvantaged and those in real need, in ways which really do
improve their position, and not by cosmetic programmes which leave
the real problem untouched.
Nor is inflation the only way in which the Labor Party has harmed
the weaker sections of the community. The worst unemployment
since the depression caused mainly by labor's irresponsible
policies has harmed most of all the wak, the migrant and the
poor last on, first off sections of the community. The school
leavers looking for work who still can't get jobs have Labor to
thank for the lack of job opportunities. The revival of job
opportunities is one of the principal objectives of our programme
to get Australia moving to prosperity.
There is yet a further way in which Labor's policies failed to
help the disadvantaged. Labor's approach to social welfare
as in so many other areas was to throw money around and hope
that the disadvantaged would be able to pick some of it up.
The result has been and here I quote from the Report on Poverty
again that: " very large sums are being spent by Governments
on the pretext that they are helping poor people when in fact the
great bulk'of the money goes to the middle class and poor people
get little." We have made it plain that our approach in
welfare is going to be quite different. We will be taking steps to
ensure that money spent on welfare is directed much more accurately
to those who are in need of assistance. In conditions of limited
resources much & an be done to improve opportunities for the
disadvantaged provided that resources are not spread too thinly
across many who are not in need of assistance. / 4
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We are a Government committed to providing conditions in which
all Australians can live lives of dignity and self-respect.
We are equally a Government deeply opposed to programmes which
increase the dependence of everyone on what politicians and
civil servants choose to provide and which reduce the independent
capacity of people to decide how their own incomes will be spent.
our approach in social welfare will be to concentrate support on
the disadvantaged, to adopt general policies which will add
greatly to the security of the weaker sections of the community,
and to minimise the role of Government in reallocating funds to
those sections of the community which are well able to provide for
themselves. This will free vital resources to invidivuals and
private enterprise. This government aims to make an imaginative
and major step towards improving social security in Australia.
We will show that this can only be done effectively as part of an
overall programme designed to encourage creativity, enterprise,
and achievement.
Last year, Australia actually produced less than the year before.
We are literally poorer as a people as a result of Labor's.
misgovernment. If some well organised sections of the community
actually succeed in making themselves better off by higher wages
this must be at the expense of other sections of the community.
These higher wages and salaries are paid out of money that should
be used to create jobs for those out of work. They are paid
through inflation out of the earnings of those on fixed incomes
and out of the hard earned savings of pensions and all retired
people. What kind of people are we if we cannot work together
as a community to get on top of our problems? I believe that
the great majority of the Australian people realise that unless
we get off the inflationary spiral of higher wages and salaries,
followed inexorably by higher prices, we are throwing away our
future. Australia will never be the great country we want it
to be unless we act firmly, and work together as a people instead
of scrambling for what's left after Labor's ravages.
As evidence of our concern in this matter, we took the tough
decision of deciding to oppose the full 6.4% increase in the
last wage hearing. When we considered all the facts, we believed
that we had no alternative. It was, and remains, the view of the
Government that tax indexation *( and its accompanying tax reforms)
is a far more effective way of protecting people's earnings than
higher money wages which are soon eroded by price increases
and higher taxes. Tax indexation was a major plank in our policy
at the Federal election.. We not only stand by our pledge to
introduce tax indexation. We will be looking to take the largestpossible
step towards its introduction this year. Tax indexation
will ensure that people will keep more of what they earn and will
not add to inflation.
Of course, we will have inflation, and more inflation, if wages and
salaries increase at 15% or 20% a year. Increases of this magnitude
are economic madness which benefit nobody and do great damage to
many Australians.
In bringing Australia back to economic sanity the Arbitartion
Commission has a crucial role to play. The Government has
no direct power over wages and salaries. It only has a power
to establish a body which can conciliate and arbitrate
industrial disputes. The Arbitration Commission established
under this power clearly has a responsibility to consider in
the course of resolving a dispute the economic consequences
and social justice of its decision. The Government considers
that we in turn, have an obligation to put arguments on the
economic consequences of decisions to the Commission. The
Commission would not seek to deny this. It is clearly the
duty of the Commission as an independent body to listen to
the Governments arguments, those of trade unions and employers.
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Th wuuhiz the Cc-ni-sion hs a tre-. i-ndou
7\ stralia IF, . t-tuggli-nq to hreak free frcm t~ i qrip C f t6-ha Vst
nflatdoftary Period i cl~ x history and eveity 3
mui~ it give *. eight to tjiiii.
Inc r~ of tbe Carmtisision is the heavier PrecdiselY
t~ zase the Gvvernzmnt tis no dixect powe~ r in. the walle and salary
G.? oae -vie st. ate ourz views strontgly, the i;* houlS -not ix-
-i en as atte. Witing te place pxes: uxre or. h o
Th ovr~ oinl_% Lke sovme otber people, has no nuai of plci-, 3..
Presureon. the cfision and would rs't see% to d" 4-0 iie ep-L
the ~ si~ snec
PMUt w-Will. not h~ n from Etating in the -Sz3-iest Zvsibl* esmi;
Coi3r View Of th-e measxes ne-Ciessary to xevive the. ecomuay. lmd I.
ph~ seour VAev that no -_ espops: ile Part Cof th~ a oovmymity car.
id iJ* ts obligation in the f ight agaiitst. rA ! atims '. ot the
trade union 1leadejuiiP and. liarge compan-les h-a. respoosibility to
helai bri~ g inlflation unjder controlwe
IMuslt ar to mve AUStraia Positively', by acier~ Tad ina the
di ractioa our pIhi-osophay indir., tes. Tae test ve-apply to Our
P-olicies 10 Whether they Contribute to a gVeatar feoa -and a-19nity
the Anu a. b
All. onr insttitioXos G~ ov e-. ir-Ae. rd:, Li. siness txade. t. Nhion
Giving cffect to our phiilosophy is not igoing to. be e3y--We have.
get out of the fraime oft nmcnad tha~ t esosile xo-iftio, r
meanst more and. mxe Governw, tnt speandingy, tlore and aore reguiati.& t
; Lnd bureaucracy. ' That iri ot sotial. reapo~ xsi. ility-It can be
s ocial irresponiility of th-e ? worst kaln. ThI'at. ' wa Lanboxa
I' iierit2mistake. We n-st avc'id it tit all cast.
hgbhe~ r and higher taytes, it erodes i~ tVeit r~~ people
xrrore zxrno more dpendent on~ what 0_-itiZ AJ~ d Ciwil SMerV1
4~ c-os to DrVie It feedz a Jc~ OT efe initiative and
w~ EienSpeoples caaity to allocate scarce reaarea~ rationall,
In* T the end, 4 t dest-ro , q prosperity -itsel. f as we. have: seen in other
MIany people still. do not rea. ise the greatcag in. approach
reuir& ed. Y" L should rightly : inmsxst that. we poi. ticiartB s~ how th
strenqthC. 1 of will not to ; xak-:. t wi* nieesr1o1fhiec ,1flu rthe-r eopl
rintzol over thei own Xeoxces..
tend to Inke yqe-should all realise the iraiona. ity oif a Systemn
This is Thbe cra2 y merry-go-rournd n whLio~ i our cind'~ s and
QUz Prosperity w-il W1 los~ ct un. es5 toe b~ yeak AtXCC Of
Jmust reform u". ecesazry blaeax) crauy and eIirainat~ e waste. We have
eSt--hisha 2a -ajor rvip-of Government rad2nistrartion at the
Feder-: 13 level aB a start in this dize~ tCxioi We Wiut stafrt a Syi
~ 1e ~ h~ ehif {~ oe~ nswant biqghex taxe&-cthey leislat
for tb
A1,, l arouna the wir2L6. peouie ina tkte arroe cnze. rnea'
aLb= t-lozs p=-pjoe, loss of direct-ion.
.11 balieve œ b23-t one oanrsouuce of~ tis~ CtzflceiD is eciuze peo-_ ta
1h; ve thought Cove~ rnnent is just a rquffatiaz. oi VTvising to
cv nh tati~ tha e ~ a-iest pazt of bei
a illzn Xt cam, also the-i i. soraxze
lWtree ehdaovme , fonror1a: a09tettern i the ~ v~ alelmcec omf brieafonzmed inw itthlii. e a ddixexeamp( c ~ t-Av artx gfkeo zat
who kr l i-ra ~ n~ d That is the path along WhIch var
philosophy directs
In -Australia today, people are better-edu~ cated, bette.-r informed
ever befoxe. It is a nortsense to say that such-a peop~ le should
all political. power over tCo Can~ berra and~ more and more controlc
theiz7 Jive-s to Government and other bureaucracies.
Our philosophy is now more relevant than ever. People should be
able to part-icipate more effectively in Covexns. ett not less-.
People sbould have m~ ore control ovexr hcr& they "_ rdtheir
eaxnings, not less.
Ouz policy on federalism will be the single, most positive step
th. is direction since Federation. I believe we a-re on the verge
a great new age of Libera. lism. ' The great challenge before. the
L~ ibera. Party, is not only to restore prosperity to Mostralia. I
is to showr that the great philoophy of which our. Party 4. s the
vo; Ice in Australia provides a way to a new sense of pux~ ose for
a idemocratic cou~ intry. It is to help buiil. in Australia, a soci
wh-ich can be an e> xa~ ile to the world-.