Broadcast 3HA 20 February 1977
3YB 24. February 1977
AUSTRALIA
PRIME MINISTER
FOR PRESS 20 FEBRUARY 1977
Embargoed until 1900 hours 20.2.77
ELECTORATE TALK
The Government enters 1977 strongly determined to break' the
back of inflation and determined to reduce unemployment..
Our fight against. inflation is in reality a fight against
unemployment. Inflation must be conquered and the real
productive areas in the community given the opportunity and
confidence to expand before Australia sees a lasting and
sustained reduction in the numbers of those seeking work.
If we do not beat inflation irrespective of any temporary
action we might take in " make work" schemes Australia will
continue with a deep-seated unemployment problem.
Today, our country has too many people in dole queues, too
many people unable to find jobs.. This situation has not
occurred overnight. It hasbeen an escalating problem in
* Aus': ralia since the Labor Government took office in December
1972. At that time unemployment was around 137,000 or 2.4%
of : he workforce. Inflation had been running for 10 years
gs measured by the CPI at an annual rate of Three
years later, when Labor were voted out, unemployment was
around 329,000 or 5.4% of the workforce. Inflation had
lepl-to more than 16% in Labor's last year..
What caused this dramatic increase in unemployment and
inflation? Three sets of official figures provide a telling
answer. When Labor came to office, the budget deficit
that is, the difference between what a Government receives
in taxes and what it spends on services like pensions, roads,
etc. was $ 774 million. When it left office, the deficit
was rapidly-heading: for a staggering, and unprec. edented
$ 4,300 million. Also, during the three Labor years, average
wages rose by 15.2%, 28% and 12.8% respectively, while Federal
Government expenditure rose by 22.6%, 33.1% and 37.9%.
Australia was living beyond her means. These figures do
not lie. They prove beyond doubt that Australia's high
unemployment is a direct legacy of A. L. P. policies. We are
now paying and suffering because of those policies.
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The grim situation we inherited 14 months ago could accurately
be likened to a slippery slide easy to slide further down,
difficult to stop, and even harder to climb back up. There is
no doubt that had the Labor policies of big spending continuedthe
policies they still preach then we would be now further
down the slide, with little or no prospect of recovery. The
Government has made a considerable achievement in holding
unemployment at present levels and stopping further deterioration.
What was Labor's-cure for the problem? They certainly didn't
stop, or even try to stop inflation. In fact, they still don't
mean to stop inflation. They introduced a regional employment.
development ( RED) scheme a temporary make-work scheme. But
costs got out of hand, so they abolished this scheme themselves.
Yet today, they call for its re-introduction. They have nothing
new to offer only tired, old and failed policies.
In contrast, the Liberal/ N. C. P. Government has not deserted the
unemployed. We have moved quickly and creatively to introduce a
number of logically planned manpower policies. We've not just
skimmed the surface of the problem but have taken responsible
short and long term action.
Let me briefly outline some of our measures. We successfully
re-organised the N. E. A. T. scheme When we came to Government,
7,500 were in training under the scheme. Today, almost double
that number are in training under and most of those
are getting in-plant training while engaged in productive employment.
We introduced and later improved a special youth employment training
programme. Basically, it pays $ 59 weekly per person to employers
providing 6 months on-the-job training. Tod~, y. more than 4,000
people are being trained under the programme.
We introduced a widely acclaimed Community Youth Support Scheme.
It encourages special community committees or existing youth
organisations to run counselling and support programmes for
young people out of work.
Last month we announced the Commonwealth Rebate for Apprentice
Full-Time Training The scheme encourages early
technical training and will help overcome the shortage of
skilled tradesmen-It is estimated that C. R. A. F. T. will boost
the apprentice intake by 12,000 within two years.
Other measures taken by.-the Government include a relocation
assistance scheme, an inquiry into the Commonwealth Employment
Service, and our full support of the National Training Council.
Finally, one of our most important initiatives in this whole area
was the setting up of a long term inquiry into the relationship'
between education and training. This will review possible
developments in the link between the education system and the
changing needs of the labour market and other matters up to the
year 2,000. / Clearly,
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Clearly, the Government has recognised the plight of the
uneinployed. We've done more than talk about the problem
we have put words into action. We have acted to relieve
immediate hardship, particularly amongst the young, and we
have looked at the problem on a long term basis.
This Government is committed to providing jobs for all
Australians who want to work. We will only achieve this
goal on a long term and lasting basis by beating
inflation. There is no other way. Our commitment to
beating inflation as we will continue to demonstrate
very clearly is utterly absolute.
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