EMBARGO: 7.00 p. m.
PRIME MINISTER
FOR PRESS 23 OCTOBER 1977
ELECTORATE TALK
This week's announcement of a 2 percent increase in the
Consumer Price Index for the September quarter is good news for
Australia. It is good news for big companies,. small companies
for farmers and its certainly good news for families.
It is the first time in more than four years that the rate of
increase has been held below 2.5 percent in each of three
successive quarters. It confirms that Australia's rate of inflation
is now running at an annual rate of around 9 percent and
coming down.
The figure confirms as I pointed out ten, days ago that we are
beating inflation. There can be no doubt of that. It again
shows up Mr Whitlam's pitiful attempt to talk the economy down
in the Parliament just ten ' days ago when he claimed that inflation
would spurt ahead in the quarter. He was trying to wreck confidence
throughout Australia. He failed then. He will continue to fail.
Clearly, the latest CPI result continues to vindicate our
consistent economic strategy. Surely, there could hardly be a clearer
confirmation of the success of our strategy. It shows above all
else as we have never stopped repeating the benefit of firm
control on Government spending, sensible monetary policies and
wage restraint.
This sustained and steady decline in inflation and in
inflationary expectations will strengthen the economy in many ways.
It gives business and industry the green light to expand: with
confidence. Industry can now see that we have broken through ixi the
fight to stop run-a-way inflation. It can plan ahead with the
knowledge that the Government will maintain its policies.
Industry can be certain that the Government will keep on with
policies that encourage them to produce and to make profits, in a
stable economiic climate. Australia's export and manfacturing
industries will be in a stronger competitive position.
The gains fJrom last year's devaluationlhave not been thrown away in
higher prices. Exports are strengthening and we can look forward to
a consolidation in this vital area. The economy will also
strengthen as interest rates come down. This will reduce the
Cost of borrowing to Australian companies and will certainly
encourage new investment decisions. / 2
Our fight against inflation is not being taken in isolation.
Inflation has hurt millions of Australians. Perhaps its most
devastating effect has been on the growth of jobs in the community.
There is only one way to effectively increase the number of jobs
in Australia and that is by restoring growth in our economy.
We are growing as a nation if we produce more goods and services.
These goods and services must be sold and the degree to which this
can be done depends on individuals buying and business investing.
Now the great problem in Australia over the last few years
is that inflation has affected people's willingness to make
these decisions about buying things they want. This also has
other effects. If people don't spend on the things they want
Australian manufacturers and other producers pull back their
production. This inevitably means that jobs are lost.
That is why we need growth to provide., those essential jobs for
people now looking for work and especially for young people
still at school who will be wanting jobs in the years ahead.
That is why we have placed priority in winding down Australia's rate
of inflation. We know that we cannot relax in-policies to beat
inflation. Our determination to keep inflation moving down must be
fully miantained. We cannot afford to throw away the hard won
gains. The Government is completely determined to press on with its
economic strategy. There is no alternative.
The fLull b-enef-its-of-.--ur-strategy consistently applied from our
first day in Government will soon become even more widely
recognised. There will be a lift in optimism, in confidence.
It will be reflected throughout Australia in the cities and in
the country. Australia is back on the road to economic health.
There is no question of that.
I and my Government know that our policies are right for Australia.
We know too that Australia will never accept the kind of forlorn
economic thinking still being advanced by the Labor Party.
As I said two weeks ago we must never forget what happened
to Australia under Labor. There is no way we could survive that
kind of experiment again.