MEDIA RELEASE ' Z
IMPLICATIONS OF THE TASMANIAN ELECTION
( Statement by the Acting Prime Minister, the Rt lion.
J. D. Anthony, M. P.)
If the Tasmanian election result reflects a general
feeling that the policies of spending restraint being followed
by the Federal Government should be relaxed, then the
implications for the nation as a whole are very serious
indeed. The people of Australia elected the present Government,
led by Malcolm Fraser, to provide firm, strong, even : ough
leadership in the battle against inflation anJ the ev. . LSflowing
from inflation.
In fact there is a wide body of opinion whi( ch says
that the Federal Government, far from being too tough in its
approach to expenditure, has not been tough enough.
Although the inflation rate of 1974-75 has been
halved, with very important consequences for Australia's
international competitiveness, we are clearly facing renewed
inflationary pressures.
We would be foolish in the extreme to abandon, or
even weaken, our determination to keep inflation at the lowest
possible level. If it is true that the Tasmanian result refl. ects
dissatisfaction with the Commonwealth-State financial
arrangements, then perhaps there is a need to remind the
community that a major factor in the present very difficult
budgetary situation for the Commonwealth has been its
generosity in recent years to the States which, with their
authorities, will this year have available to them a thousand
million dollars more than last year. ./ 2
Premiers who compl. ain about the financial arrangements
need to be remninded that the total funds available to the
States have increased more than threefold since 1972-3.
On other fronts the Commonwealth has been forced,
as part of the fight against inflation, to clamp down on
spending. The fight against inflation is not one for the
Commonwealth alone.
Everyone must be involved including State
Premiers and their Governments.
If the Premiers cannot be convinced of the
fundamental importance of expenditure res-traint, then the
chances of the community as a whole being persuaded would
seem to be slim indeed.
Failure to achieve this understanding can only
have the most serious implications for Australia's future---
especially for her unemployed.
July 1979