lj> A U S L IA
PRIME MINISTER
FOR PRESS 20 AUGUST 1978
ELECTORATE TALK
The Government's Budget is the right Budget for Australiathe
only Budget for Australia. The Budget had one major
objective to build on the foundations already set for
the long term economic stability and prosperity of Australia.
We met that objective without quibble, without pretence.
That Budget has been exceptionally well-received by
Australians. I have spoken to many Australians over the last
few days and almost without exception they said we had
produced a good Budget.
Of course there are moans about cigarette prices, and beer
prices and petrol prices but people understand why we had
to take these decisions. They understand that there is
no easy way out of economic problems. There are still no
quick fixes.
The people I spoke with farmers, factory workers, Australians
from all walks of life all recognised that we had to keep
on with the firm policies and with our policy of restraint.
Even though this Budget had some so-called " unpopular" news,
people have received it far better, I believe, than our
previous two Budgets. That says a great deal about the
intelligence, commonsense and fair-mindedness of Australians.
I don't believe the kind of newspaper headlines we saw after
the Budget reflect in any way the real feeling and real
spirit in Australia.
One of the reasons the Budget has been accepted is that
Australians can see that inflation is being beaten a 5 percent
inflation rate within ten months is a reality.
Australians remember all too vividly that when we took office
inflation was in excess of 15 or 16 percent. That was hitting
hard and direct at the needy, the poor, the disadvantaged, the
pensioner, the farmer, the family and business.
Our policies have slashed inflation and have created conditions
where interest rates can continue to fall. As interest rates
keep coming down in a steady and in a sustainable way
that gets to the heart of Australian life. / 2
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The level of interest rates affects every Australian,
every buying decision. Lower interest rates really benefit
young couples buying a home or improving an existing home;
it helps farmers who rely so heavily on borrowed money to
finance expensive equipment; it helps someone buying a new
car or borrowing money from a bank or a building society
for any reason at all; and it helps business, large and small.
Reducing inflation and reducing interest rates will do more
to help every Australian than any other act of Government.
In fact the real stimulus to the Australian economy will come
from lower inflation and lower interest rates and not from
some Government induced spending programme that pumps money
out of ever-turning printing presses.
of course lower inflation and lower interest rates wgill make
our great industries more competitive in Australia and in
world markets. You all know what this will mean for jobs,
for confidence and for growth.
Significantly, of course, it means that as a resource-rich
nation we will become a favoured nation for investment.
Countries will be looking to Australia with our lower inflation
and with a sound and stable economy for years ahead.
Australia now has a high reputation in the great finance
markets of the world. Countries know we are pursuing the right
policies, they know we mean business.
Countries look also to Australia not only as a nation with a
sound economy but as a country with continuing policitical
stability. Investors still remember the damage caused to Australia to
Australian industry and jobs--by the political instability of
the three Labor years.
They now look to Australia with sound, responsible and sensible
economic policies and to an Australia with stable, united and
determined Government. We will not fail on either account.
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