F'OR PRESS 6 APRIIL 1977
BH13AGO: 7.. 15 p. mn. '-ST
ADDRESS TO THE NATION
Good evenving. Now that the wage case is over, ' I would likte
. speak to you for a ew moments a-bout where we stand as
a nation ,. and -aboxit where we are qoiicT in : 1977.
We all know there have been significant problems for the economy.
Th is concerns you-lt certainly concerns your Governmrent. We
a! lI know that i4f wages go up, price. c up. We know the
destructi ve of fect that infiation has on the economy. That is
Why we argued sio s~ tzcngly for wage restraint before ithe
A-rbitration Co-mmission. We have not done this as some
cartoonists, some columnist~ s, might like to suggest because
we believe -that life is not meant to be easy. We have dIone
it becauaE itc is important for the well being of Australia, for
the well being of every pevson. it is important fox providaing
the jobs that Australians want~.
We all kniow that wheni the Goveinment took office fifteen months
ago~ the economy was in bad shape, inflation was much tco high.
unenployment was much too hiuh, and Government apending ,, as
craite out of control. qe took up the fighrt against inflation
irmrediately because defeating inflation is ixrrortant to the well
being of all Australians. -We hatve tackled this job with all the
resources available tZ. o Gover-rnent. We have cut Government
spending significantly, because Governmrent spending is a major
cause of inflation.
In simple terms, a Government is somewhat like a amily.
It has to live within it~ s means. We all k-now in our own families
th~ at if we spe-nd too much for too long we will discover
eventually that are too much in debt to the bank,-c We also
kno-v that debts can take a lonq while to pay off. WE! know that
4iewe are paying off debts we are going to have to give
up other things that we would. normally want. So it is with a
nation. Australia has spent too much f'or too long. The Government
of: the ay went to the printing presses so it could clo on
sye-nlirq more and more. The inevitable result had to be more
anid more inflation.
The other major cause of Australia' a inflation has hiee Itoo xrapid
wage increases. For example, in the two years to October _ 19-i
hourly Wage. ; rates paid in Manufactulring industry went up by
5A7 while at the same time production from' manufacturing,
in~ dustry actually fell. The result can only be inflation.
2. I
Peopic WNPd a lot 0or C Money Lo oel. btwe w* erc ac C.
~ ci~: r :~ s~ Pr" c t he r oore atoou.
T~ of assc Awus~ tr li. als jiflation have been too g r cat
Gocn~ n pniiad to 7id w-a g t er s1; Ca t CVvr n nrt
ha8 actedl, quite drastiCEaL1-y, tO rC AucC itS 0" in seri." ing. 1
we are to overcom'. o in'flat -oQa, wage r-_ trai Dt is also cos ent ial.
. T xnc-a~ x~ er sc'ri,, peo'pl who claiLm that ,., hen the Govern~ merit
points to thle needf for wa! c; s r. estraint, tlien are att-ckina wiage
anid salac-f. arner.-:. That . s niot so-. I belicve thero arairior
and ruv; re neople iaround AunStrajlek Who0 are C--in to -A
t'Lhat wage restraint is in theIr own 13est Ift the ini. orefst
o f e -jPrvy At. r aii an in tha neet of thei-r mates 1' P-, o ido not
have -ob8; and,' that it-is in the J ta,: rest of resi-0r2. lq C
to the A-1itralialn a: ConormV . an1 Cstalblishi trp ie CfILrts ta . e S
w'he. re cvQ) yoone can again look forward,' to risinig livir.-g tda.
The Governent 1-bns not sa Lid onl-that there ought to be wacia
ref-trdimt. The '~ vrntnh& as~ odelibe. r&;-eiy set 0 ut to
~ tablxh the 3tanic-S An w4i'jich it is reaso'nabl t a
for wage rsa.-The Ti policy Of aml lo'. zShas do-ne
C7.' 4: at d'eal to ! Iei;? income I-amiJ~ liCs. Tens oi ouh. v._ tands
o~ famtilies arc -1eaitsr c -a r c ilt. 73-1 adlitiori, taxz
indiexation i8 helping all famili-es. 7xa'ov lastE July, taxfs
wer yS C0o0: urem i 111 o q a s a 8ulIt t ax -ati11
11-a-_ is a vary lar'; vsurr, a n aybe it is hard to ch7d
ITC mnaan that for a & n easvoe raqie earmin.," s, wit-n' a wift amii1
. two cvc-rtaxes by ie , t Ju:) e $ O9 a lOe3Ks . Lhdr) tl-oV"
WonuAfm v beeni wthiout Indexation-' That iz near'ly a ar
It is more th-an a curter of tlie tax that would oth; erwiss have.
been pa.-A withiout cur r= efor-Ms. Tax indexation is thie ffars-t
system in our history that autzc-atiCally protects you, thee.-L
automat3_ Ca7Lly pjrotects exrE-TY tax payer agains-t tax rese
nmereiv because of infiat.-ion-Unb~ these cir~ zwrstances, : 1
be1~. i-t ' is jite r( easonable to ask fEor a greatdalo
Wage res; trairnt.
In all. 1: 1e mreas under elirect GovPrr7nt 0oto V; hae atiw
A44I , m e 2S We have greaUIy reducc CTOvernm~ ent spen dinl1.
TDhat Js staiin the 7:+ ight against infLltion. W4e have anl
ap~ rpr: Lrate -and prope-r m05Et+-ary poL3cy. Our Qx'ternal policy i8 in
' the ric~ t bal,-ince. AZll of theso acticns are essential if w
ar o ~' ecm& e flton fwe arc to Crealc the jobs thaLt: we11a_ l .
rqe have ha" sjqnificarit ='. Icess ill the fiqhtli against infElation.
Inte % ete m o -jth11s t o 6 t D c Qe mb e r o n th best rigures wte have,
2.* LT~ c riwe rno ata ite over 10 percent. A year earlier
thefic~ wmar p~ C'flt No matrwhat anryone mid,, ht 2a Iyt ) S e
twa fii--: L nd i c-t! a very ro~ alI itnpvrolemenit i n the coaLirse oJ. onre
ye. 7u'. ~ tthat cani Ybe arot; 1cc if ther. e is -no cont inued wa ge:
rest~~ a~ naQinw~~ TA'C ic . s n area that is not umler the
di UCt coflt,. z0l of Ioi erJAe. ustralia Is circumstance~ s
t. i~ s vmy lirt: 7y the Aribtration Commission that de-termines the
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* ol of wacis ' oaid. Th e A jtr a Ion Co mi-Ssion is not just a
tereor tosetle industria" 64irputes. Itis also ' I
-1e c-stoi~ o n have a gireat impact on Elie wnolct economny.
af~ fect youi, they affect every ome 1. s.
L~ t -Wee% 4Vhe_ lxbltratiori Coa-SS10.1 award: edl a $ 5,70 a we e'k
14 Pe incre ase. tow that does mean-that-wear st--rtinq 1.977
Ltn a qr e at or d eqre o f -, iaq0 r L. s t -, Iilt than w-a laas t %/ era
tnd that in-itself iL3s-0011~. But th $ 5.70 ir i t L a
th tCeh q e Goerne nt b elev es is3 in te intere ts of
\ utstralia' s econxomic~ well being in the interests of tjhe wall
Aiq of ca-ch person. Lt cdoes menthat there will be delay in
ducticn in the level of inflationi, and that4 there wll1
delay~ Un -ed-" uctions in \ 1ncrmplo% ent. it d~ oes eathat it aiil1
e tar d the p-. rocess 0j: -cvery that is now under1 way, t
herefor e t-here is no reason for com-; placency, ~ n titpriu
dhisicn-" he GOvarrtmerlt will co-Ptinue to argue I' ut 1re for
wage caSes -For the cgreatc-st possible degree of 4aerestri.
tbe Cois3iol ha. s m~ ade it ! acisin and not I k. u t
eve,-yorit-to acccpt it, and to work~ within T~ ~ fi
leaders who are threateniing to go oatside thedecision and
who azc threateningq -o break tIChe aair~ ean~
turedt-Ek) irg every pc3oxn in IAustralia. Thea ArbitLrzat1ion
Cc i 9so _-LIs Cii -ust be suppox-ted. It will be sppotad
;:) elieve wE a. 11 know in our bhearts that the-kind of wagia
i. ncreaases we have hzad in recenL tilres only lead to higher anid high,
That 14 wlhy we had to d value last4 NoebrL4 o oso h
emnort ot-? srax obs. Auis. tralian rnanu~ actrr s were ;~ table
to s eJ 1 their gcods b -ause thiey werc too e'~ penslVr.. More and r'o
importk-s wcre Qoran into the cotny. JA s a r es ul t 100, 0 0
A\ st-rallans Lost their' Jobs in nanufactturin,-indust zy. ah~ t
had to ;, top. ] jundreds oi millions of dollars wcre flowing oi. L Ot
country andl th-at had -to ste-p. That ; s why we devalku.: d.
Devaluati'on Stopped und flowing ouLt of AustraliLa.
] Devaluatiori has gTiven Thstralian itn&_ stry a chance -to com~ pete aciaai:
and that is essential) if there are to bea tba iobS that Australia
nei~ ds. ~ i t-he chance of: work for tens of thousands
Au~ tralians -will bo-lost _ if t-herc -1s riot wace -estr;, a4 t,
UnemploFyment is still tcxn bigh-I ?-now y: ou -are concerned about thaaa
T am, and as the Gove!_ rL-ient is. We have, as youa k1now,
introduced it nlwnber of piclprograi-aes to heir ' uen eMIlo'e
and espeaicily to help the young iiarrployed. W2 Wiill i3-prcnv
on tl-osa p-oranrames as we. ocanV. But the o7n11 way reallyV to
ovrcmeun oo'~ eiv. ~ to overcome ria~ nandw
U~ t~ l~. l~ lto d" o that. -iniflation create3 nmlvet
It hbur-ts the por. It mak; es it harder to bya hc1-ne..
It destroys tiie value of savings and in~ o: res. ~ earta leterT -1ne'-
to oec einfElatior. an.-restore to Australia the jobs andi
opportunitic~ s thatl-Aiustralia wants.
we can establish the policies. Wecan'e thfe .4q1 0i-; 1 inC'_ 1, bu t
) restor-ig Autralia t; Lo economic hjealth is not 4ust a j-' cb for
the Govo~-, nert alone.. Tt is alIso a ob for you, to-, every g . roup
in the APwstralian bui. ss foiiin. ROvo2u r~ ny
4.
a ~~ iii er-conrac recovery. R~ vcrYcne has a role irt
r s ta-rinrl Astral. ia to c: cj~ iomc heal. th.
Now I can upderst-ad it if you think that your own per52oylaL
decisions3 are so smnall th t tey oQi-uot real> y iava any
on c~ r~ y that sete arears so Ifir; a rIf~)'
iirE~ emte ut t, e A'ustralinan ezorto-mii made
ao: ther Tt:' S like yol-xs, all arouznd
AusTr~ ets: e~~ r th hat ma-kze thep A-ustx ala
1t thes 3cr0oSs on'I thInt hav0 1 ar -gTe -2 t 0 Y) ia
in eietermininc wO-ethi-a haive a helth econocmv. SDO rC_ tor_; j C
PAustic. afia to cf--nacmic health~ is a j'ob for evarvamn-. it is
iob for You a-nd it O certainly a -1. b MrE. It i a
ifor ell101r* DcrSCMon ric e very g9tml: I in the Austrnli-. n omri.
. lf WC-Qan undi-zrL-tani tiand 1-1 we c. n wark tocjcthe:-r I have,-
n~ ot the sliq-ht-est dcub,-th1iat we wf. 11