F77/ 228
PRIME MINISTER
FOR PRESS 16 OCTOBER 1977
ADDRESS AT LIBERAL PARTY FEDERAL COUNCIL
Thirty three years ago today on October 16, 1944, a meeting of
non-Labor groups in Canberra adopted the name " Liberal Party"
for their new political organisation. They believed that
Australia was a great country and had the potential to be even
greater. They believed that applying Liberal ideals to the task
of Government would enhance the lives of all Australians.
Since that time, the face of Australia has been vastly changed.
Changed by the migrants who have come from all over the world to
start a new life, and who have so enriched Australia; changed by
new industries and by new technologies; changed by the influence
of world issues and events.
But the cornmitmets and ideals that led our founders to form this
party more than a third of a century ago the commitment to
individual freedom; to growth and development; to the rule of law;
to a tolerant society; to assisting those in need are as valid,
as relevant, now as they were then.
Liberalism has never been allowed to harden into an inflexible
dogma. It has kept touch with the real concerns and feelings of
Australians in city and country. One demonstration of this, of
the strength of our philosophy, of our success as a Party and as
a Government, is that we are never afraid to declare our commitment
to liberalism. What a contrast with our political opponents.
How many of them are willing to stand and declare their commitment
to socialism. On this matter, if on no other, the Labor Party is
acutely sensitive to the feelings of the Australian people.
Labor leaders remain silent and sullen because they know Australians
do not want socialism at any price. They know it is a dogma
totally alien to Australians.
We are proud to be called Liberals, because liberalism can provide
unity and a sense of national purpose, whileallowing people t'-o
live their own life in their own way. Because liberalism can
provide responsive and effective Government without creating an
over-powerful and intrusive state. Because liberalism can provide
real help to those in need while encouraging the energy and initiative
that are a healthy nation's lifeblood.
Labor can provide * none of these. In Government it was incompetent,
divided, bungling and scandal-ridden. It was a Government of
higher taxes committed to the destruction of incentive. It was
a Government that encouraged industrial lawlessness, held up
/ Australia' s
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Australia's development and squandered Australia's potential.
They have not changed in Opposition. They have not made any
constructive contribution to Australia they are aimless and
divided. But they do agree on some things.
They all want higher taxes. They all want Government to spend
eTxhtery avaalgl awntalnyt to Mrd. e pWrheistsl-bamu swinoeuslsd bsyp entad kiantg leawasaty a$ 2l l bthiel litaoxn more.
concessions this Government has given. They all want to stifle
mining projects and Australia's development. Labor's Deputy Leader,
Mr. Uren, has been running a campaign attacking mining development,
and the Labor Party's policy on uranium tries to undermine the
properly safeguarded development of a vital energy source. Labor
has made -its position perfectly plain. They would stifle growth,
halt development, remove all tax concessions and incentives to
invest. One financial newspaper has described Labor's approach
as " more of the same old bungling".
But in the light of Labor's consistent attack on development, in
the light of Mr. Hayden's cynical attempts to promote speculation
against the Australian dollar, in the light of the concentration of
union disruption in export industries, where it will come to the
attention of overseas investo~ rs, one is entitled to ask whether it
is more of the same old bungling or a deliberate attempt by the
Labor Party, acting in harness with union extremists, to undermine
Australia's economic and social framework, with all the consequences
that would entail. One thing is absolutely clear the Labor Party's
opposition to growth. and development is denying people one of their
most fundamental-rights_-I the right to work.
The Liberal Party has always stood for growth and development.
Without growth, without development, there simply will not be the
opportunities Australians should have to improve the quality of their
lives. Without continuing development there simply will not be enough
decent and rewarding jobs for our young people.
As Liberals, we knew that there could not be a full return to
prosperity unless inflation was reduced, unless individual initiative
and achievement was encouraged and rewarded, unless private enterprise
was given room to grow. We always said that Australia could not be
restored to full economic health overnight. We said it would be
difficult. We never pretended it would be painless. We were
elected because we said we would face up to the hard decisions.
Our anti-inflationary policies, our tax reforms, our incentives to
private enterprise, have all flowed from the basic principles of
liberalism. They have laid the foundations for prosperity.
Australia is on the move.
In my 1975 Election Policy speech I said " Over the next three years,
we will introduce a number of major reforms to direct resources away
from Governmet and back into the hands of individuals and business".
In just twenty two months, we brought in tax indexation, we created
new simplified and lower personal income tax rates, we brought in for
business the investment allowance, the trading stock valuation
adjustment and to aid the small business sector, the burden of
division 7 tax liability on private companies has been eased.
We have made much needed taxation concessions for mining and
exploration. We are achieving the transfer of resources back
into the hands of individuals and businesses -the transfer that
is vital to development. / In this
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In this financial year and the one just ended, corporate and
individual taxpayers will on present estimates have saved almost
$ 3.4 billion in tax. We have been able to do this because we kept
our promise to rein in Government spending. We have ended the days
of Government waste and extravagance, and reduced the Government
deficit by half a billion dollars in each of our two Budgets.
But the best news for Australia is that inflation is falling.
Under Labor, inflation reached the height of 19% in the last half
of 1974. Information now available from the Organisation for
Economic Co-operation and Development, an international b. ody of
high standing, shows that we are cutting the inflation gap with the
rest of the world. In the first half of 1977, consumer prices in
Australia rose at an annual rate of less than 10%. This was in
fact lower than the average increase by our major trading partners.
And other measures of prices show that inflation is continuing to
fall.
For example, in the three months to July, the price index of
materials used in manufacturing rose only. compared with a'
rise of 3.6% over the same period in 1976. Our policies have enabled
for the first time in four years some downward movement in interest
rates. A downward movementwhich has been confirmed by the terms of
the conversion loan announced by the Treasurer this week. The trend
to lower interest rates will gather momentum as inflation falls.
There has been a -substantial strengthening of our trade and current
account. In the September quarter, seasonally adjusted exports
increased by around while imports decreased about Here
we see some of the beneficial effects of last November's devaluation
and we can expect a further strengthening of'our trading position.
The outlook for bur economy is steadily improving. In 1976-77 the
non-farm sector of the economy grew by 3.5% in real terms compared
with an actual decrease under Labor in 1974-75. Company profits
have increased by 23%, and investment in plant and equipment was
up 6% in real terms. Consumers have been prepared to spend increasing
proportions of their wages and salaries. Real household
disposable income largely because of lower taxes, falling prices
and the Family Allowance Scheme, was 1.6% higher in 1976-77 than in
1975-76. There has been a marked recovery in housing approvals,
and many large industrial and mining projects have been announced
including the North-West Shelf development, $ 600 m. commi~ tments to
expand the Robe River, Mt. Newman and Hammersley iron ore projects.
$ 600 m. of new projects in the manufacturing sector were announced
in the June quarter alone.
We have laid the foundations for sustained economic recovery. We
are breaking the back of inflation and in 1978 we can look to even
further successes, so that our vast wealth of manpower, skill and
resources can once again be utilised.
one challenge which remains to be met is a major reduction in
unemployment. It is true one can deduce from recent surveys made
by the Australian Bureau of Statistics, that only a small percentage
of the unemployed are family breadwinners; that ove-r 40% of persons
unemployed left their last job voluntarily or for reasons other
than dismissal or retrenchment; and that many people registered
with the Commonwealth Employment Service in fact have a part-time
or full-time job. / But this
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But this Government is vitally concerned for those who genuinely
want work, and who cannot find jobs. There are too many Australians
in this situation. We have already taken wide ranging action on
this front. We have protected employment by giving Australian
industry the protection it needs. Since December 1975, we have
placed over 850,000 people in new jobs through the Commonwealth
Employment Service. We have established or expanded manpower and
training programmes, including a special youth employment
training programme, the Community Youth Support Scheme, relocation
assistance, and the C. R. A. F. T. scheme for apprenticeships.
Over 100,000 people have benefited from these schemes, and more
than $ 100 million has been provided to continue and expand them.
Still more will be spent if necessary. No eligible unemployed person
will be refused assistance under these schemes.
In a time of economic recovery, employment is always the last
factor to come right. Employers first use up existing spare capacity,
and make more use of overtime. And when wage costs are high,
productivity can often be increased more effectively by devising
new management techniques, and purchasing labour saving equipment.
But as inflation declines further, and demand increases, the present
high levels of unemployment will go down. A more responsible union
attitude would hasten the recovery in employment. Excessive wage
increases have priced people out of jobs particularly young people
and the unskilled.
We have consistently sought to achieve wage restraint. We have
had some success on this front but not nearly enough. / The rank
The rank and file unionist knows that excessive wage demands cost
jobs. it is time that union leaders and shop stewards faced up to
the facts. Unions also have a responsibility to prevent
disruptive strikes which are a prime cause of unemployment.
In Victoria alone, 450,000 people were laid off directly because
of the destructive Victorian power strike. But it's not just a matter*
of workers being temporarily stood down. A survey by the three
major Victorian employer groups showed that as a consequence of the
Victorian power strike, the number of workers who will be re-employed
will be significantly fewer than the number of employees laid off.
The extremist officials of a few key unions have set their face
against conciliation and arbitration. They have engaged in a campaign
of disruption in the key power, construction, mining and maritime
industries. Look what the extremists are doing to Australia.
Look at the construction industry, one of the most vital Australian
industries from the point of view of providing jobs.
Largely under the leadership of the Builders Laborers Federation
last month projects worth $ 469 million had been halted or substantially
disrupted. Look at the maritime industry, strike after strike,
damaging businesses vital to Australian prosperity. Look at the
constant stoppages and bans in the great mining projects in Western
Australia and Queensland.
The senseless economic damage, and distress to tens of thousands
caused by the Victorian power strike have been condemned by all
responsible commentators. But the silence from the Labor Party
has been deafening. Surely the self-styled guardians of the
working man should be vociferously attacking a campaign which strikes
at a fundamental right, the right to work. But not once has any
Labor spokesman offered one word of criticism, one word of regret.
The reason is not hard to find. Men engineering the
industrial disruption are leaders of unions with close affiliations
with the Labor Party. Unions which are heard in the highest councils
of Labor's policy making machinery. Yet we need to understand that
a number of these men are avowed enemies of democracy and the
Australian way of life.
What has Mr. Whitlam said about this? Not a word. What has Mr. Hawke
said about this has he repudiated these extremists? He has not.
The fact is that Labor is too weak to resist the demands of the
extremists. In fact their official policy is to place unions abdve
the law.
This Government is determined that the law shall prevail in industrial
relations. No community can tolerate the exemption of one section of
the community from the law. We certainly do not intend to tolerate
it. We showed that in the air controllers strike, we showed that in
the recent postal dispute. In the Victorian power dispute, it was
the Commonwealth and Victorian Government's move to deregister the
four unions involved that got Mr. Hawke and the strikers back to
work. We -have
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We have already passed new legislation to bring a greater measure
to justice, order and common sense to industrial relations in this
country. We have legislated for secret postal ballots for union
elections. We have established the Industrial Relations Bureau as an
independent agency to ensure that industrial law is observed. We
have amended the Trade Practices Act to ban damaging secondary boycotts
The Commonwealth and Queensland Governments will together use this
legislation against the Seamen's Union campaign to damage the coal
industry in Queensland. A campaign which has caused deferral of the
quarter billion dollar Norwich Park project, and robbed hundreds of
Australians of jobs. We have recently passed but not proclaimed the
Commonwealth Employees ( Employment Provisions) Act 1977, strengthening
the Government's power to stand down Commonwealth employees.
Currently, the Postal Commission is being faced by bans at the Redfern
and Newcastle mail exchanges, designed to prevent improvements which
will render our postal services more efficient. Similarly, the
Australian Telecommunications Employee Association is using bans
clauses to prevent technological change, which will make for more
efficient telephone services and which will help contain telephone
charges. It is totally unacceptable that Commonwealth employees should
expect full pay for doing only part of their job, for refusing to
perform tasks essential to the operation of their employers.
The Postal Commission already has stand down clauses and Telecom
will be applying to the Arbitration Commission on Monday for the
insertion of stand down clauses into their Act. If the bans continue,
there is no doubt those stand down clauses will be applied. we hope
it will not be necessary to proclaim the new Act, but if it is, we wi ll.
We have done much in the area of industrial relations but more remains
to be done. Tony Street will shortly introduce further industrial
legislation. Its provisions cover three major areas. They will provide
a wider range of consequences for the breach of industrial law,
they will protect the rights of individual employees against oppressive
acts by their own unions, and they will-for the first time enable
strong and effective action to be taken under the Conciliation and
Arbitration Act to deal with demarcation disputes.
The decision has been taken after long and careful consideration with
both employers and unions and through the processes of the NLCC. Tony
Street has not yet had time to put them to the Party Committee or to
the Party Room, but I have little doubt these changes will be supported.
We have a record of achievement that has been made possible by the consistency
and coherence the Liberal philosophy has given our programmes.
We have acted to aid the disadvantaged and those in need, the introduction
of the Family Allowance, the indexation of pensions and benefits,
our new measures for the handicapped, are milestones in social reform.
We have protected and enhanced individual rights, the Ombudsman, . the
Administrative Appeals Tribunal, new simplified methods of reviewing
bureaucratic decisions, legislation for a Human Rights Commission,
amply demonstrate our concern to advance civil liberties.
We have shown care and concern for Australia's ethnic minorities and
the recently appointed Galbally inquiry into post arrival services
for migrants will I believe provide a basis for a new deal for
migrants in this country.
We have enlarged people's ability to make the important decisions
affecting their lives. Tax cuts allow Australians more say over how
their own hard-earned income is spent. The Medibank reforms have
restored choice in health insurance and our policies to assist the
the Aboriginal communities give first priority to Aborigines
participating in running their own programmes. / We have
We have ended the movement to concentrate more and more power in
Canberra and shared power and responsibility with the States and
local Government. We have ended the bias against the rural community
which Labor deliberately introduced. Income equalization deposits,
tax averaging and our other tax reforms have greatly helped to
maintain incomes of ' rural producers during a period of depressed
markets and rising costs.
The wide range of measures to help rural industries in distress
the recent package of assistance to the cattle industry and the
decision to establish an Australian Rural Bank all demonstrate our
determination to ensure the continued viability of our rural
industries.
Help has also been forthcoming for small business, a sector which
embodies the spirit of independence and initiative so important
to the health and vigour of our nation. Our tax concessions were
consciously framed particularly to help small business and on
Thursday, after the most intensive study we announced a range
of measures to increase the availability of finance to small business.
These achievements have been made possible through the unity of the
Ministry, the strength of the Parliamentary Party, the loyal and
strong support from our coalition partners. And the superb
cooperation that has been built up under Federal Executive's
guidance between the Federal organisation and the Parliamentary
Party. The Government values highly the advice regularly given to us
by the Economic. Advisory Committee and the. four specialist committees.
Rural, manufacturing, tertiary industries and natural resources.
The Joint Standing Committee on Federal Policy has met with sixteen
federal ministers to review the Government's policies in their areas
of responsibility. This has provided an invaluable stimulus for
Ministers. The Federal Women's Committee and the Young Liberals
have performed very important work for the Party, and have assisted
the Government particularly in bringing forward possible new policy
initiatives for consideration.
The Federal Secretariat has never operated so effectively, or served
so well the Government and Backbench Committees which have come to
rely on its professionalism and expertise.
The last 22 months have been difficult ones, and the overwhelming
support given by the party to the Treasurer and the Government have
been of inestimable value. Most of the commitments we made at the
last election have already been fulfilled. In my 1975 election
speech I made 51 specific promises, in less than two years, over
have been fully implemented, 5 partially implemented and a
further 10 are under implementation at the present time.
We are now beginning to see the signs of a real turnaround in
the Australian economy. Inflation is down, our balance of payments
is far healthier interest rates are declining growth and development
of this great country of ours have started once again. In 1975/ 76
only $ 128 million in foreign investment came to Australia. In the
year just ended over 6 times that figure, $ 826 million, flowed
into the country. While we
While we have concentrated on getting the economy right, easing
the crippling taxation burden, and restoring order and common
sense to industry relations, we have also devoted much attention
in making fundamental reforms to enhance the rights of individual
Australians of minorities, of those in need. Our social reforms
have been designed to advance the well being of all Australians,
our law reforms have been designed to advance the liberty, the
independence of all individuals.
Ladies and gentlemen, we have made a start, a strong start, in
restoring Australia to prosperity. But our task has only just
begun. At an earlier time in our history, Australia was regarded
as one of the world's most advanced and enlightened liberal democracies.
Our aim is nothing less than to restore Australia to that position of
strength and pre-eminence. The challenges that face us are
great, but the potentialities of our country are boundless.
Together we can realise that potential.
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