EMBARGO UNTIL DELIVERY % AUSTLA
FOR PRESS 9 JULY 1978
ELECTORATE TALK
The Goverz7_. e; C has begun the formal process of taking decisions
that will 1-ad to the framing of the Federal Budget.
This year, the Budget takes on a particular significance.
It is one of the most crucial years Australia has faced. It
comes when our own economic recovery is gathering pace and when
other nations are again starting to see Australia as a secure
and stable co-ntry.
Australia must again become a favoured nation for investment.
We must gather and hold a competitive edge with other nations
also competi__--!: for investment funds and for markets.
Decisions we Make at home also come at a critical time on the
international trade and economic front. This is a year when
trade decisions made around the world will affect Australia
and employmentI opportunities for Australians for years to
come. In fact;-, some of these decisions will be made over the
next few weeks by world leaders at the Bonn Summit and the MTN.
The point I make is that this is a year when Australia has to
do its utmost to put its own house in order. For those reasons,
the decisions made in this Budget will follow the most rigorous
and detailed examination of the Government's own housekeeping.
Every area ofE Government spending will come under the microscope.
Spending priorities will be rigidly set. The dollars we collect
from taxpayers will be used wisely and with thrift. We are
determined to count the cost of every spending decision we make
on behalf of the Australian taxpayer.
For too many years in Australia, governments have been less than
responsible, less than caring, with taxpayers money. Governments
seem to have accepted without question that spending must
increase year after year as a matter of course almost as a
divine right.
Those days have been finished since -my Government.
While this Gov--ernment controls taxpayers dollars, we will not be
seduced into automatic willy-nilly annual increases in spending.
Massive irres-ionsibility in Government spending combined with
irresponsibility in wages policy that were the hallmark of the
Labor years, was utterly counter-productive. Our country found,
to our cost6-, that throwing money at problems simple added to
those problems. ./ 2
Although the Federal Government carries the responsibility for
the Federal Budget, the States too have a real part to play in
exercising discipline and restraint.
Tt is worth noting t~ hat%. spending by the States and their semigovern~
ent and local authorities accounts for more than half
of Australia's tota_ public spending.
In the last two r~ nilyears ( 197 6-77 and 1977-78), the States
have received fcreasing proportion of total grants and
advances. s h increase has come in the form of untied
general grants, e is wide scope for the States to set their
own priorites-.
Expenditure przposals will be examined on their merit alone.
The Government will not be lethargic in providing funds to
meet real needs. We will not be backward in recognising our
responsibilitLies to people, groups and communities not able
to help therselves.
: n fact the rse it true. We will continue to provide creative
support and ==_, grams that advance our national cause and enhance
-he well-beinz and dignity of Australian men and women. We will
continue to stow that we govern for all Australians.
But as the Na-zional Government, we cannot afford to apply anything
less than the strictest discipline to our actions.
I believe the Premiers well understand the special role they can
play in maintaining restraint and thereby contributing to national
goals. I believe they well understand that for Australia today
there is a need for continuing economic responsibility by those
who spend public funds.
IThe Government is committed to responsible, disciplined, economic
management. We have demonstrated that we will not yield to pressure
to do otherwise.
The Budget delivered by the Treasurer on 15 August will consolidate
and strengthen the gains already made. It will show all Australians,
and those looking to Australia, of our complete determination to
build on the strong foundations set over the last 2 years.
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