3HA Sunday r, June
3YB Thursday ] O June.
J',.) AUSTRALIA& k
FOR PRESS JUNE 6, ] 976
ELECTORAL TALK
As the first session of Federal Parliament is now completed
for this year, the time is appropriate to broadly review
progress. The record majority in the House of Representatives for the
Coalition at the last federal election was largely a cry
for help.
The people of this country had simply asked us to get Australia
back on its feet aga-in and in tune with the major economies
of the world.
The Coalition Government had inherited record inflation and record
levels of unemployment. That was plain for all to see. We also
inherited record and wasteful Government spending, an unparalleled
Federal Government deficit,-record interest rates and an
extraordinary and des-tructive growth in money supply.
Now just six months, the Government has laid the foundations
for economic stability and has paved the way for a return to
growth and productivity.
This has not happened by a quirk of history. It is the result
of a number of decisive and responsible economic management decisions.
First, the Governmnent moved to cut back on excessive and wasteful
Government spending. We moved to. reduce the role of centralist
Government.
We also imposed growth limits on the Federal Public Service with
great success, and without personal hardship.
We moved to halt the runaway supply of money that was a feature of
the previous administration's economic policies. We have done this
without a credit squeeze and without losing the confidence
of the business community or the consumers.
The weakest feature of the national economy in the past two years
has been business investment. Businessmen had been caught between
the millstones of rising inflation and spiralling wage costs.
The Coalition Govern-ment has acted to remove that millstone.
Only a few weeks ago the independent Arbitration Commission was
influenced by Government argument that all salary and wage
earners should not receive the full consumer price index rise.
The Commission limited the rise to those earning up to
each week. A flat $ 3.80 was paid to all other wage and salary
earners. The Commission was convinced by the Government arguments that
further steep wage rises would unnecessarily fuel the inflationary
pressures. Of course, the Government has taken a number of measures to
restore the ailing manufacturing sector.
In fact, one of our first decisions in Government was to set up
an Economic Consultative Group to monitor trends in the private
business world and report these trends speedily to the Government.
This move has been very successful.
We also looked closely at the role of the Industries Assistance
Commission. And at the factors that must be considered by the
Commission when it presents its reports.
Another of the measures the Government has taken to get manufacturing
moving forward again has been the suspension of quarterly tax
installments. Businessmen no longer have the burden of finding
cash sums each three months. They can now-plan over a ] 2 month
period without loss of liquidity throughout the year.
The cvernment's 40% investment allowance is again aimed at giving
the businessmen particularly those who invest in plant and
machinery real incentive to make expansionary plans.
Additionally, the Gover." ment has laid down clear and sensible
guideiines for the inflow of foreign money and foreign expertise.
This measure was aimed directly at getting Australian business
back in business again.
The Government is also reviewing the trade practices legislation
with the view to removing the crippling red tape and controls
that servicenp-useful purpose and that stifle meaningful expansion
plans by companies.
Overall, business leaders are now able to invest with much more
confidence, knowing that Government will make responsible economic
decisions. The Government's much debated medibank reforms are further evidence of
our desire to assist those most in need. It also provides choice
for all Australians as to the type of health care they require.
Oome of the reports on the way in which medibank will operate have
confused many Australians.
Le me set the record straiqht.
fedibank remains. It will be available for every Australian.
It will continue to provide high quality health care insurance.
There will be no means test at all.
Australians on lowest incomes and those wholly dependent on
pensions will not have to make any payments under the arrangements
we are i ntroducing. Their right to the full medibank benefit
without cost remains.
For those who will be contributing to health care that means the
vast majority of Australians there are now four clear options
available.
These options are factually and concisely explained in a pamnphlet
now available throughout Australia.
Australians do not need to make an immediate decision-on which
form of health cover they desire. The new meansures will not
come into effect until October 1.
This session has also been notable for other significant
Government decisions.
We have moved to est~ tblish a Commonwealth Ombudsman; wqe set up
a House of Representatives Expenditure Committee that will
improve the capacity of the House to scrutinise public expenditure;
we set up a Government Members Parliamentary Reform Committee
that will examine all aspects of the parliamentary process.
In the important areas of international relations we have moved
to rebuild friendships with long established allies, particularly
th' 2i United States. forthcoming visit to China and Japan
also underscored the Li-oortance my Government places in maintaining
and developing relationships with these two nations.
Australia is now entering a critical period in its recovery.
The forthcoming round table sesssion of talks between the Government
and the trade union -movement and later between the Government
and employer organisations will be an important milestone in
our efforts to achieve economic stability.
The Federal G~ adrnment's August budget will also be crucial to
the nations economic recovery.
officials and ministers are already at work planning and
developing a budgetthat will play its part in our overall recovery.
Government's however cannot do it all. Businessmen, trade union
leaders, rank and file trade unionists, and Australian families
all have a special part to play.
The fight against inflation and unemployment is not one for the
Government alone. It demands the support and sympathy of all
Australians who care for the future of their country.
For all of us the great national tasks remain to be completed.
We have only just began.