4JAUSA ALIA
FOR PRESS 7 JANUARY 1977
EMBARGO: 2.00 p. m.
NINTH NATIONAL CONVENTION OF YOUNG LIBERALS MOVEMENT
It is a great pleasure for me to be here at the Ninth Annual
Convention of the Young Liberal Movement.
The Young Liberal Movement has always placed great emphasis
on social issues. The Government values the part the Young
Liberal Movement has in developing its forward policies its
role as a sounding board for testing ideas, and in alerting
the Government to the views of young people across the whole
range of national issues.
Today I would like to speak to you about the Government's approach
to social reform, and place this within the larger context of the
tasks that face it in the economic field.
Outlinin" -his broader context is important because occasionally
some people focus on only one aspect of Government policy and treat
that aspect as if it is, or should be, the Government's exclusive
preoccupation. Such a partial perspective neglects the fact that the Government
has responsibilities in all areas of social policy. More importantly,
it neglects the relationships between one area-of policy, one
sphere of Government action, and another.
The relations between actions taken in one area with our ability
to act effectively in other areas is nowhere more apparent thau
in the relationship between economic policy and the effectiveness
of programmes to assist the poor and disadvantaged. 41
When this Government was elected it faced an economy which~ had been
thrown into fundamental disarray. What should have been one of
the world's most prosperous economies had been afflicted ' by high
unemployment, accelerating inflation and economic stagnation.
Government spending had grown enormously doubling in three years,
from $ 10 billion to $ 22 billion. In one year unemployment had
increased by almost 200,000. Australia's deficit had reached
record levels. Economic activity had declined.
The poorest people in our society were harmed most by the erosion of
living standards inflation brought, and by the unemployment
which inevitably follows inflation. .2
2.
In this situation the Government had to give priority to righting
the economy and defeating inflation. And we have pursued a , consistent
economic strategy directed at achieving this goal.
Although there is still a long way to go, at the end of our first
year in office, we have made substantial progress towards dealing
with Australia's economic problems.
As the C. P. I. figures and a number of otherprice indices show,
we have made significant progress., in winding back inflation.
On the activity front, the estimates for the September quarter
national accounts showed the third successive quarterly increase
in gross non-farm product. Indicators for the December
quarter show further gains in private spending and employment:
and reports of retail trading in December have been particularly
encouraging. It is worth noting that even if there were no
further growth in the remainder of this financial year, the
year as a whole would show a growth of 5.3% in real non-: Earm.
G. D. P. over 197S/ 76.
The decision to devalue was made inevitable by the almost universal
belief that the dollar was overvalued, the consistent speculation
against the Australian dollar and the uncompetitive position of
Australia's export and import competing industries.
Provided we pursue our anti-inflation strategy with even greater
intensity devaluation presents us with the opportunity to build on
the economic progress of the past twelve months. We intend to
do so.
Our economic strategy is an intrinsic part of our approach to social
reform. The ability to effectively carry through social reform
cannot be separated from a Government's capacity to provide
the nation with responsible economic management.
As the Henderson Report has pointed out, reducing inflation is
central to our ability as a nation and as a Government to assist
those who are disadvantaged or living in poverty.
Our economic strategy is directed at supplying this essential
condition of social welfare. It recognises that only an
efficiently functioning economy, one which adequately rewards
personal achievement and initiative can provide the material sinews
necessary for social reform in many areas.
But having said this, it should equally be recognised that
economic management alone is not enough. All the social reforms
Australia needs will not inevitably flow from economic recovery.
Beating inflation is, and must be, the dominant objective of
this Government it is not, and cannot be, the sole objective
of a responsible Government.
While we have been unrelenting in the fight against inflation, we hay
also been carryring through the commitment which all of us here
share as Liberals to achieving major social reforms. / 3
3.
The objective of our reforms has beeun to bring meaningful
change in those areas which require change. Change which is
appropriate to the needs of the particular situation and -to the needs
of people. Change which enhances the quality of Australian life'
and which increases people's ability to achieve the things they
valI. ue.
If reforms are to achieve these goals they must co! mprehend
and be responsibe to the complex character of Australia as a highly
developed industrial society in which people pursue a diversity
of objectives.
Reform must be conducted with a sense of urgency because there
are areas in our society which are in great need of change. They
must also be conducted with an awareness of Australia's basic
strengths and achievements.
In all cases, policies and programmes must be constantly monitored
to ensure that they are actually acheiving the purposes they were
intended to. Inevitably, in a complex democratic society
the knowledge that we must operate on will be incomplete..
There will be instances where, despite careful planning, some programmE
might have unforseen consequences that do not serve the ends the
programme intended.
In such cases, the Government must be prepared to act to remedy
these consequences. Governments which refuse to do so on the
grounds that remedial action casts into doubts their firmness or
purpose are in fact admittingthe most fundamental weakness the
refusal to see reality as it really is. Such Governmnents; evade
their central responsibility coming to grips with that reality
in the interests of the Australian people.
A central element in coming to grips with problems is thE. ability
to direct assistance to the people in need and ensure that they
actually get the assistance which is directed at them.
We have'acted to achieve this.
In the area of children's services, Labor's programmes were
primarily directed to funding pre-schools. Despite the o'bvious
fact that the most urgent need of many working mothers particularly
low income families is for full day care.
The alternative to this is often leaving their children in
unsuitable care or no care at all.
Accordingly, we have changed the direction of the children's services
programme to give greater emphasis to the provision of full day care
facilities. Some people have argued that by reorientating the child care
programme the Government is encouraging women to leave their
children in care. They are refusing to face the -reality that
thousands of mothers do work and are unable to make adequate
provision for their children. The Government is responding to
this reality. ./ 4
Unemployment amongst Young people is a matter of particular concern
to the whole community and the Government as I know it has been
for the Young Liberal Movement which has made representations to
us on this issue.
The position of school leavers from 1975 who have been unable to
establish themselves in stable employment has been especially
pressing.. Accordingly, in extending the advantages of on the
job training under the NEAT shceme to the young unemployed with
the Special Youth Employment Training Programme, we have given
priority to this group of young people.
A special subsidy of $ S9 per week was arranged, and the programme
took off from the moment it began. The acceptance the programme
achieved in the community and particularly with employers, enabled
the Government to extend the conditions for entry. By mid December
3600 young-people had been placed in employment under the scheme.
Where major changes have been necessary and where it is clear that a
wide ranging change will actually bring improvement, we have
not hesitated to make radical changes.
The introduction of the new system of family allowances has been
widely and I believe correctly identified as the most
significant reform in the Australian social welfare system since
Federation. It has improved the position of a vast number of
fEamilies. It has given particularly important assistance to
300,000 poorer families with 800,000 children who benefitted only
partially or not at all from the previously operating system of
tax rebates for children.
Family allowances also exemplify our commitment to directing
assistance to those in greatest need and making this assistance
available in forms giving recipients the maximum feasible choice
of how they will use that assistance.
We have also made radical reforms in the Federal system and taxation
policy. In the area of Federalism, the Government has brought about
the most significant reform since Federation by giving State and
local Government access to a fixed percentage of personal income
tax receipts. This gives these governments an unprecedented
degree of budgetary independence and capacity to meet their
responsibilities and set their own priorities without interference
from Canberra. For 1976-77 united grants to the States have been
increased by almost 21% and to local government by almost
These funds can be used as state and local government wish.
The financial autonomy our reforms give, to these spheres of
government will enable them to respond more effectively to their
constituents while enabling the public to more sensitively evaluate
the actions Governments take and the alternatives they might
realistically have chosen. A major part of the significance
of our Federalism reforms lies in the opportunities they offer
the public for more effective and meaningful participation in state
and local governments. / S
Tax indexation also enhances our democracy and increases governmental
accountability to its citizens. No longer will governments be
able to exact greater and greater po;-tions of people's incomes merely
because of inflation. Where government needs more money, it will
explicitly have to raise taxes, with all. the requirements for
public discussion and justification that actions of this sort require.
While making major changes in some areas, we have also heeded
the warning the Henderson Report offered Australian Governments
against " falling into the inflationary trap of attempting to
carry out so miany social reforms or other public expenditures at
once that they accelerate an . iFatonary spiral that does more
to damage poor people than the assistance provided by the reform."
All too often politicians haveassumed that the only requirement for
successful social reform is a programme any programme so long
as it involves the expenditure of large amounts of money.
The expereince of the Labor years has shown us that money thrown
at problems does not only often miss, but actually hurt those whom
it was ostensibly aimed at assisting.
The Government must be willing to try different methods of
bringing about reforms, so that we can determine whether or not
they will achieve the things we desire of them; so we can
gauge the unintended consequences of the programme, and where
possible, determine whether one approach is more effective than
another.
Accordingly, in some areas, the Government has adopted an experimental
approach in order to determine the effectiveness of programmes.
In the housing area, for example, we have begun work on the
design to test the feasibility and effectiveness of providing
subsidies earmarked for rent directly to families in need.
We are also beginning an imaginative experiment with migrant
resources centres in Melbourne and Sydney. Each of these centres
is to be developed along distinct lines to assist the Government
assess the relative effectiveness of the different approaches.
The Melbourne centre involves the contracting out by the Government
of the provision of some services to an ethnic welfare gr~ oup which
is in close touch with the needs of migrants.
The Sydney Resource Centre will be staffed by officers of the
Department of Immigration and Ethnic Affairs, members of
state government agencies and of voluntary organisations, and
there will be close liaison with, and participation by, the ethnic
communities who are served by the centre.
Reform is not mere ly a matter of taking new initiatives which are
striking in their innovativeness or imposing in their magnitude.
Of fundamental importance is mal~ ing adjustments within the
administrative machinery to render it more efficient and
sensitive to the needs of thc people with which it deals.. If the
people dealing with a government agency feel-that they are being
treated insensitively, if a migrant feels lost because he cannot
communicate his problems to a Departmental officer; a person
is bewildered by a complexity of forms and cannot cope;
if a pensioner dependent on a pension cheque failes to recieve it
puncutally and is caused distress, then the best, the most
abstractly enlightened social security system will have failed that
individual.
Such failures cannot be taken lightly and dismissed as individual
cases ultimately, there are only individual cases.
,1e have sought to make changes in the administrative machinery
which will make it more efficient and sensitive.
In the Department of Social Security for instance we have made
changes which will facilitate people's ability to get the benefits
to which they are entitled in a more dignified and expeditious
manner. Particular attention has been given to assisting
migrants . One important improvement which has already been
introduced is the installation of dual handset telephones linked
to the telephone interpreter services-in many of the Department's
counter areas. These handsets enable a counter officer and a
migrant who are having difficulty in communicating to converse
through an interpreter. The means test on pensions has been
replaced by an income test which is simpler more readily
understandable by recipients, and more equitable. Improvements
in the computer system for social security benefits have reduced
processing time thus making the system of payments faster and
more punctual and also permitting an increase in the work
effectiveness of social security personnel.
I cannot pretend that the changes we have made will resolve all the
problems in this area, but they are an important beginning, and
we will do more.
In the decades since Federation, the Commonwealth's bureaucracy
has grown enormously in size, power, and in the range and diversity
of its formal and informal discretions. Many citizens have felt
powerless in the face of the governmental apparatus and believed
they have little recourse against decisions emanating from it.
'% Whea ve taken steps to ensure that people dealing with the government
are treated faiirly promptly and according to the law, that discretion
are properly used, that grievances against the government are properi.
and impartially investigated and that -wheire grievances are justified
they will be remedied. The Administrative Appeal Tribunal has
been established. It has the power to review the merits of any decis
of a Minister or official acting under statutory power where the
relevant le ' gislation allows appeals to the Tribunal, and it
may set aside or alter decisions of a othiistor-or official.
The Ombudsman Act has been passed through Parliament and the
government expects shortly to appoint the Federal Ombudsman.
' The Ombudsman will be able to review all administrative acts of
officials and recommend corrective action where he finds
maladministration. These measures will enhance the freedom of all Australians and proti
their rights in an area in which protection has long been needed an.
too long delayed. If reform is to be, as it must be, an ongoing
process, it is imperative that the machinery of government bc
7.
structured to provide advice on needed reforms, and that
the government have the advice and be able to consult groups
which have special expertise in the area.
We have taken steps to bring this about.
To ensure that the needs of women are taken into account in the
formulation of government policy, women's units have been
established in a number of Departments and authorities.
The Government also intends to establish a Women's Advisory Committee.
An Inquiry has been established to report on youth matters and to
examine the advantages of establishing a youth bureau or a youth
advisory panel to advise the government. This Inquiry will
provide an important means through which the government can consult
with youth.
In the area of Aboriginal affairs, an Inquiry into the NACC
has made recommendations for increased involvement of Aboriginals
in developing programmes and priorities in Aboriginal affairs.
These are now being considered by the government.
Some of the other reforms which we have initiated over the last
year include: the legislation for the automatic adjustment
of social security benefits every six months in accordance
with movements in the CPI; the introduction of an improved home
savings grant scheme that is in fact more extensive than the one
we committed ourselves to during the 1975 election campai. g n;
the decision to establish a Human Right's Commission ' which
will promote human ri ghts and ensure that Australian laws
are maintained in conformity with the United Nations International
Covenant on Civil and Political Rights; the passage of the
Aboriginal Land Rights Act through Parliament
an Act which will be of major importance in restoring land to its
traditional owners in the Northern Territory; the reintroduction of
triennial funding for the eduation commission; the protection
of the unique and fragile beauty of Fraser Island as an important
part of our national heritage and the making of provision to
assist those whose employment was affected by our decision on the
island.
This only sketches in the barest outlines some of the areas in which
the government has acted to acheive reform in the past twelve months,
and some of the steps taken to lay the groundwork for further
action. There are other areas in which we are carefully considering the most
effective ways of proceeding. Income Security and the care of the age
are two areas in which we intend to act in the future.
The government has elso tabled proposals for a Freedom of
Information Act and intends to introduce Freedom of Information
legislation in the next sitting of Parliament.
Law reform particularly on matters touching the protection of the
individual's rights, and freedoms against the state and Other
indidividuals has a high priority with the Government.
A number of references have been made to the Law Reform Commiss:; hml
in this respect. In this constant process of reform,
I believe that the Young Liberal Movement has an important part to play,
We need imaginative proposals for reform which avoid the cliches
and posturing which have done Australia so much harm in the recent
past. The Labor experience has shown us that one of the greatest
traps a government call fall into is to attempt to win politicial
kudos by dre-ssing up illconsidered change as reform. Such masquerades
not only fail to come to grips with the real problems facing our
society, but they often exacerbate the problems they were ostensibly
intended to resolve. The reforms which we have made in the last year
have been reforms of substance which will make a lasting and
meaningful contribution to improving Australia, which will make a
difference to people's ability to cope with the complexity of
our society.
In their depth, breadth and appropriateness, they represent a
record of achievement of which any Liberal, any Australian, can
be proud. Our reforms have recognised that radical action is
necessary in some areas, that experimental approaches are necessary
in others, and that there must be constant attention paid
to the consequences of policies and to the administrative. mach-inery's
capacity to implement programmes.
They have been based on the recognition that qualitative
criteria are more important than quantitative criteria in
judging reforms. The important questions are not how many progiv:, mes
has a government begun nor how much money has been expended on a
programme. We have shown that there is room for reform in areas
where no additional expenditure is needed.
The Labor Government amply demonstrated that ill-considered
expenditures do not make reforms and can in fact be counterproductive.
The important questions that must be asked of a programme are:
does the change actually assist the people who are most in need?
Does it promote the elimination of those pockets of discrimination
and areas of power imbalance that exist in our society?
Does it materially assist the poor and disadvantaged while avoiding
the debilitating loss of self-respect that over dependence brings?
Does it make a contribution to enhancing the rights and
freedoms of Australians? Does it make the government more
responsible to the citizen and more responsible and accessible to him
Judged against these standards, 1976 can be considered the year
in which the Commonwealth Government carried through some of its
most significant reforms since Federation.
But these reforms can only be a beginning. There is a manifest
need for further reform in many areas of our society. We will make
these reforms. The basic strengths of our society, its
egalitarianism, its lack of fundamental class or racial
conflicts,, its great wealth gives us an unmatched potentiality for
building a society which is unsurpassed in its equality;
its opportunity, the independence Of its c , itizens, and their
capacity to achieve the goals they value i~ n their own ways.
We ave Oeguyl to real ise that potential.