PRIME MINISTER
FOR PRESS 26 NOVEMBER 1976
EMBARGO: 8.00 p. m. GEORGETOWN MEETING
I am very pleased to be back here in Georgetown in the
Bass electorate. Gecirgetown and Bass will always have a
special place in Australian history.
In the by-election here in June last year by your decision
you gave heart to people all around Australia.
It certainly gave gipeat heart to those of us who were
work ing to halt Australia's disastrous downward slide and
to turn Australia towards economic recovery.
Those of you who took part in that campaign gave a lead
which helped to spark off the return to prosperity which
is now getting underway.
You sent to Canberra to represent you, a man who has already
made a first class contribution Kevin Newman.
In December last year, Tasmania gave a vote of confidence
to the whole Liberal team. There is no a State in Australia
more strongly, more vigorously represented in the Federal
Government than Tasmania.
Last year, Liberals around Australia committed themselves to
take the difficult decisions necessary to beat inflation and
unemployment. Throughout this year, members of the Liberal
Party have worked together as a team to see that the vital
steps were taken.
The commitments we made have been honoured: excessive
government spending the major cause of inflation and unemploymenthas
been cut back. The Federal bureaucracy is already thousands
less than this time last year. With the savings we have
made we have been able to introduce major tax reforms to
assist both individuals and business. We have introduced
full personal tax indexation. This year, to take one example,
the tax reduction under indexation for a taxpayer on
average weekly earnings with dependent spouse is $ 4.60 a week.
2
Next year, tax indexation will mean a further reduction
in tax compared to 1975-76 rates. Just how much will
depend on the rate of inflation. At 12% inflation next year,
the saving for this same taxpayer would be nearly a further $ 4.00
per week compared with this year, and $ 10.60 per week compared
with the 1975-76 rates. At 6% inflation, the taxpayer with
a dependent spouse onaverage wee! Kly earnings, would be
paying $ 7.50 per week less than if 1975-76 rates still applied.
This year, personal tax indexation is worth $ 990 million to
Australian taxpayers. By next year taxation revenue will
be some $ 2 billion less as a result of indexation adjustments.
it is an important aspect of our total attack on inflation.
We intend to introduce further reforms in this area.
As the Treasurer said earlier this week income taxes are still
too high in Australia, destroying incentives and penalising
initiatives. When it is responsible to do so, we will be
moving further in this area.
One of the most important national needs is to reduce costs.
Despite the activities of a few left wing militant unions
who have tried to undermine recovery, most Australians have
supported the Government in its calls for wage restraint.
Most people now recognise that every wage increase makes
it more difficult for private enterprise to provide new
productive jobs and delays recovery. Thosc who press for
excessive wage increases are actually producing more encmployment.
The quickest way to get higher wages without inflation is to
get industry moving.
Our programmes are directed to that. It is going to be a long
haul to -repair the damage done by the Labor Party to Australia..
It cannot be done quickly but the foundations for recovery
have been laid.
Inflation is now coming down. As inflation comes under control0
and confidence returns, employment opportunities will start to
expand. In this area of Tasmania there are now clear signs that recovery
is making headway..
This year Comalco has announced a $ 9.8 million expansion to increase
plant capacity the expansion is expected to provide some one
hundred additional jobs.
Under Labor, regions with great potential like Tasmania were
ignored.
Unfortunately the Labor Party does not understand that to make
a state prosperous you need to encourage industry. It is private
enterprise that provides productive jobs, opportunities, higher
wages and a better standard of living. / 13
State or Federal, the Labor Party seems to think that the road
to prosperity and jobs is through more and more Government spending.
This only tends to higher taxes which penalise enterprise and
destroy jobs.
While industry in Tasmania was reeling under the Whitlam inflation,
the Neilson Government dealt a further blow by increasing state
taxes and charges.
Charges and taxes imposed by the state government added up to
an additional burden imposed on Mt Lyell of about $ 1 million in
three years. No wonder that company ran into difficulties.
While private enterprise and farmers all over Tasmania were
making losses, the state government ended up with a $ 4 million
surplus last year, and more than $ 17 million credit in its
loan account.
Why weren't these funds used to help Mt Lyell?
The Labor Party seems to think it can increase taxes and spending
indefinitely without any adverse effects.
Last year, the Liberal Party committed itself to a number of
significant measures to help Tasmania. Those commitments
have been honoured. Together they amount to the most substantial
set of programmes for any state in Australia.
Foremost in importance has been the introduction of freight
equalisation. For too long, Tasmania has been disadvantaged by
the high cost of shipments of Tasmanian products to the mainland.
The i. iheral Party undertook to establish a scheme on the basis
of thc-Nimmo Report which would ensure that the cost of transporting
goods between Tasmania and the mainland is approximately the same
as moving similar goods by land over the same distance.
We have now introduced freight equalisation on northbound freight.
This will be worth over $ 16 million to Tasmania this year.
This scheme camne into operation on 1 July. At the time we
announced that we were also examining the problem of southbound
freight. Many industries * in Tasmania are held back by the cost
of bringing materials and equipment interstate.
We have now completed our examination of the southbound freight
problem. There is a very extensive range of goods that could be defined
as producers material and equipment.
Because of this the most equitable way to implement a scheme
is to ask firms in the manufacturing and mining industries to
provide the Department of Transport with a list of the commodities
imported from the mainland for use in production.
Producers' materials and equipment that represent greater than
of the factory door cost of the finished product a limit set
for practical reasons will be eligible for subsidy. / 14
The scheme, in common with that operating northbound, of
course excludes bulk cargoes.
Registration of eligible imports from the mainland will be
open from 1 December to 1 February 1977 after which eligible
firms will be notified of subsidy entitlement and will be
able to claim subsidy from the Department of Transport.
The scheme will apply retrospectively to shipments of cargo
on or after 1 July 1976.
Registration forms will be mailed automatically to those firms
that have already benefited from the Government's northbound
scheme.
Other firms who are users of imported producers' materials and
equipment from the mainland will be able to obtain forms from
the Department of Transport offices in Hobart of Customs offices
in Launceston, Devonport and Burnie.
As the requirements of agri cultural, forestry and fishery0
producers are more easily identified they will not be asked to
register individually with the Department but Jill be eligible
to participate in the southbound scheme from i. Ls commencement.
Further details enabling claims to be lodged will be announced
shortly.
Tasmania has also benefited form the new Federalism Policy.
Under the new tax sharing arrangements Tasmania will receive
some $ 4.7 million more than under the old scheme.
The new arrangements are also of great advantage to local
government. Local government will have much greater freedom
and assured funds to decide how to meet local needs than ever
before. United assistance to local government throughout
Australia will be $ 140 million this year. United grants to
local government in Tasmania have increased 43% over last year.
We insisted that local government in each state should be
represented on the new advisory council on Inter-government Relations
How absurd it would be if the representative from Queensland
had to explain what had happened to local government in Tasmania.
The Advisory Council of course will be based in Hobart.
It will have a valuable role in advising on improvements to
inter-governmental cooperation in Australia.
Tasmania has some of the most magnificent country in Australia
of which Australians everywhere are proud.
Despite stringent financial constraints the Commonwealth
has made available funds to assist Tasmania in the establishment
of the South West National Park.
The Australian National Parks and Wildlife Service is assisting
the Tasmanian service in a resources survey to identify components
in the area which should be protected.
We have been very much aware of the needs of Hobart following the
bridge disaster. So far some $ 24 million has been spent by the
Commonwealth as a result of tho disaster. Very substantial
assistance will be made available this year as well.
Conditions and politices in recent years have hit the farmers
particularly hard. Tasmania should have strong rural industries but wage
costs, strikes, incompetent Labor Government policies, have all.
made life difficult for farmers.
At the Federal level, the Liberal Party has introduced a major programme
of policies to help rural industries back on their feet.
Wle have introduced a forty percent investment allowance which
covers most new farm machinery and structural improvements.
To help the dairy industry particularly, the Commonwealth is
Sunderwriting butter and cheese, to ensure that dairy farmers receive
Wabout 6O per pound butterfat at the farm gate and is providing
$ 13.5 million for the dairy adjustment programme in 1976/ 77.
An Income Equalisation Deposit Scheme is now being introduced.
Tasmanian industries have also been particularly vulnerable to
strikes because of their dependence on one major form of transport.
We committed ourselves to legislate for secret postal ballots in all
union elections. This legislation is now in force. It places
a powerful instrument in the hands of rank and file members fed up
with militant union leaders.
These measures will all be of very great benefit to Australia.
The Liberal Party State and Federal is deeply concerned about
the unemployment caused by the incompetence of the Labor Party.
There is only one way to get unemployment down and keep it down
Wto get industry expanding again.
To do this, we have to beat inflation and the uncertainty created
by inflation. We have to reduce costs, provide incentives, create
an environment where private enterprise knows its problems are
understood by Government.
This is the way to restore prosperity and create more jobs.
The more costs can be kept down, the faster inflation comes down,
the sooner we can get unemployment down.
Because of the Liberal Party's concern for the Tasmanian situation the
Commonwealth Government has decided to hold an inquiry into the
structure of industry and the employment situation in Tasmania.
The inquiry will be undertaken by Sir Bede Callaghan, Chairman of
the Foreign Investment Review Board. / 6
6.
Sir Bie; de will examine the inherent advantage and disabiliti,--es
of TasiR* Uinian industry; existing forms of assistance to
and charges levied upon industry' by State and Commonwealth
Governments and Vir instrumentalities; the capacity
of Tasmania to assistance to industry from the financial
resources availablez to it; and any other factors that
appe-ar relevant including industrial disruption and
restrictive practices, and any special consequences there
of for the Tasmanian economy.
The I-nquiry will be of major assistance in restoring prosperity
in Tasmania.
In Tasmania a Liberal Party Government will help build -the
confidence that is vital to recovery. A Liberal Party
Government will provide the realistic policies essential
to recovery.
On * e of the things that has given great concern to the
Liberal Party has been the effect of inflation on low
income families. A number of measures we have introduced this
year have been designed to concentrate assistance on those
in most need.
Let me mention two of these measures: one is the
family allowances scheme one of the most significant measures
to help low incomes families since Federation. This measi~ re
is helping particularly some 300,000 families with 800,000
children who benefitted little, or not at all, from the
system of dependents rebates.
The other significant measure which is still at the
experimental stage is the housing allowance voucher scheme.
This important initiative has been brought forward by
Kevin Newman. If the early investigation proves successful
the scheme will provide low income families with the choice
of accommodation on the open market. It will make welfare
housing sensitive to the needs of the users rather than the0
planners. It has already been announced that Hobart will
be one of the locations for the initial try out of the scheme.
Approximately 1500 families in Hobart will benefit directly.
THe whole of Tasmania should benefit from the housing allowance
voucher experiment being conducted in Hobart. The
fact-that Hobart has been selected for the experiment should
free some money that would have been spent on welfare housing
in Hobart under the Commonwealth-State Housing Agreement,
for other parts of the State.
The Liberal Party said in the Federal election last year that
home ownership should be a national objective and we committed
ourselves to introducing a new,, home savings grant system.
We have introduced a home savings grant with more generous
provisions than the ones we announced.
The measures the Federal Liberal Party has introduced this
year have . been designed to establish conditions in which peopleand
States can meet their needs in the way they think best.
This purpose lies behind our economic policy, behind'
Our s~ llr ~ ssuch as the family allowance scheme.
Th. rL Pa~ rty's approach in these matters is very different
fr'lim tilt Laibor Party's. The Labor Party has an unrealistic
no'jIoo. that Goverrnment can do everything. That Politicians
in Hobart or in Canberra understand people's needs better than
people do themselves; that the way to make Australia prosperous
is for Government to spend more and more of people's earnings.
I have no doubt that the Labor Party will be saying yet again that
they can cure all our problems by spending just a bit more of
your mon ey. Handing more and more of people's earnings
over to politicians is not the way we are going to solve
Australia's problems. That approach has created the problems
of inflation and unemployment we now have to cope with.
It has done enormous damage to Australia and to Tasmania.
The Liberal Party is offering a practical and realistic approach.
There is no quick or easy solution to repairing the damage
done by Labor. Tasmania took a large step forward when the
people supported the Liberal Party last December in the
Federal elections. Now is the time to confirm that
judgement by supporting Max Bingham and the Liberal Party
in these State elections.
Tasmania will get the full benefit of Australia's federal system
by supporting a Liberal Party government in Tasmania which can
work constructively with the Federal Government to get
Australia moving forward again.
In supporting the Liberal Party, Tasmanians will know that
they are supporting a Party, which will work as a team; which
will' fight hard, realistically and responsibly for Tasmania;
and which will work in cooperation with the Federal Government to
beat the inflation and unemployment caused by the Labor Party.
I am confident that Max Bingham and his team are going to offer
the kind of Government Tasmania desperately needs realistic
and practical government with a genuine concern for those hit
worst by the Labor Party's unemployment and inflation.
With a Liberal Government Tasmania can begin to realise its
great potential. 000000000
TERMS OF REFFi '{ NCE FOR INQUIRY INTO STRUCTURE OF
INDT) USTRY A'TJ TJhB EMPLOYM-GNT SITUATION IN TASMANIA
The study is to enquire into and report upon the structure
of industry and its relation to the long-term employment
situation in Tasmania, in itself and in relation to the
structure of industry and employment in Australia as a
vhole, in the light, in particular, of the following.
. The inherent advantages and disabilities of
Tasmanian industry, including
separation from the Australian mainland and
its consequences;
( ii) the availability and stage of development of
natural resources, including water, land,
minerals, power resources, ports and harbours,
and tourist attractions;
( iii) relative wage levels and non-wage employment
costs ( eg workers' compensation), including
the effects of relevant State legislation
thereon;
( iv) the internal transport system.
In reporting hereon ( and elsewhere, where relevant), the
study shall have due regard to the Report of the Commission
of Enquiry into Transport to and from Tasmania and other
relevant studies.
Existing forms of assistance to, and charges levied
upon, industry by the Commonwealth and State Governments,
and their instrumentalities, including
direct and indirect financial assistance
( eg, freight subsidies and the like, non-
recovery of costs of Government services);
( ii) non-financial assistance;
( iii) tariffs, and the relative incidence thereof
in Tasmania ( having. regard to past and pending
IAC Reports on particular relevant industries);
( iv) royalties, taxes and. other charges levied upon
industry;
and the effects of these on Tasmanian industry.
The capacity of Tasmania to give assistance to industry
from the financial resources available to it.
Any other factors, that may, on enquiry, appear relevant,
including industrial disruption and restrictive practices, and
any special consequences thereof for the Tasmanian economy.
,' lith respect to location of industry, the enquiry should
identify the social and community implications of any changes
in the structure of industry in Tasmania which may, for
economic reasons, seem to be desirable.