PM Transcripts

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6 NOVEMBER 1978
PRIME MINISTER'S INTERVIEW OUTSIDE THSURY PLACE, MELBOURNE
PRIME MINIER: I haven't decided for the moment which horse
to back, I will have to study it this evening.
QUESTION: If the States are allowed to borrow such large sums
of money overseas, what is to stop another burst of inflation?
PRIME MINISTER: You need to, you are preempting a decision of tke
Loan Council to start with, but you are also, I think, forgetting
that the borrowings will be over a period of eight or nine years,
and they need to be seen, therefore, in the context of
Australia's normal borrowing requirement. The Commonwealth has
said very plainly we have got a responsibility for managing the
economy, for managing the money supply and therefore tle decision
of the Loan Council in these matters needs to be one in which
there is a simple majority of which tle Commonwalth is a part.
We are not going to take decisions which will jeorpardise
Budget decisions or Budget strategies.
The fact that this meeting was coming up was well in our minds
when we were forming our own 1udget decisions. But, while the
overall sum might appear to be large, the totality of what the
States have asked for this year is about $ 150m and that b~ ings
it down within the area in which it can be seen that it is not
inflationary, and self-evidently I wouldbelieve, by and large,
a responsible set of pnposals. That is not preempting any
attitude in relation to specific ones but a responsible set of
propo,. als designed to add to the strength of Austmlia's basic
industries, infra structure, export capacity, matters that will
build up the basic strength of the economy of Australia.
That is tiv substance of the guidelines, that is the purpose of
the programme, and we have had some hard-won gains against inflation
there is no way we are going to prejudice that with any po] icy.
QUESTION: The Labor Party says it will repudiate agreements
on uranium if they get into power. How can you guarantee investors
who might be pouring money into
PRIME MINISTER: They are not going to get into power, and the
Labor Party is just becoming the Party of knockers.
But it was Mr Uren who~ said that and I don't think Mr Uren has
has got any reason to speak for the Australian Labor Paity in
relation to those particular issues-., On these infra-structure
proposals for example, we have had Mr Hayden saying one tling,
saying that the borrowing reqirements shouldn't be pursued,
and we have had Senator Wreidt and I think Mr Hurford saying that
the agreements should be made in full. So They are in a great deal
of disarray, and nobody need be concerned abbut any statement
that Mr Uren made he will never again be given an opportuity
to apply it.
ENDS