-1j A~ R 11
FOR MEDIA SUNDAY, 26 AUGUST 1979
ELECTORATE TALK
The Government's Budget faces up to the needs of our country
in a world grappling with new and complex economic. problems.
It demonstrates our determination to keep up the fight
against inflation. If we were to relax or relent in that
fight, Australia would slip back, perhaps for decadcs
to come. Investment would falter and jobs would g( out
the window. Development would seize up, and that w " 7-
lose jobs. We would no longer be competitive here z d on
world markets and that would cost jobs. The poor ind
the pensioners would be hit and farmers would strugi-e
to overcome rising costs.
Plainly, John Howard's Budget keeps up our 3 year fight
against inflation.
Again, Government expenditure has been restrained. In the
last three years Government expenditure in real terms has grown
at less than 1 per cent a year. That is a remarkable
achievement, with pressures for expenditure on our country's
social welfare and defence needs. No Government State or
Federal in Australia's history has ever excercised that
degree of restraint in its own expenditures.
The Government's deficit has been significantly reduced,
from nearly 3 per cent of gross domestic product to
1.9 per cent. And what is called the domestic deficit has
been reduced to a bit under $ 900 million the lcwest figure
for six years. These figures are important because they
mean greater funds available for business investment
and housing.
Reduction in Government expenditure, lower deficits these
are instruments in fighting * inflation. But this fight isn't
just an economic objective. It is not just about facts and
figures. It is central to any community that seeks to care
for the needy and build a better and more tolerant society.
So when I say this is an anti-inflation Budget, that doesn't
mean it is only for big business or industry. It means
it is for families everywhere.
Our political opponents have tried to portray it as a Budget
that does nothing for the unemployed. That is absurd and
they know it. By persisting with strong anti-inflation
policies, this Government shows more concern for the unemployed
than those who say spend more money here, spend more
money there. / 2
1 -2-
It is a false hope that " make work programs of one kind
or another will solve the problem of unemployment.
Governments certainJy hav; e to tackle unemployment through
training programs that equip anrd re-equip people to take
up jobs in companies in all kinds of industry.
But above all, Governments have to create the kind of climate
that encourages development and investment. That gives
a real incentive to create new and lasting job opportunities.
our policies are attracting great new investment programs
in private industry. And now for the first time in years
the numbers of civilian employees and employees in manufacturing
are starting to grow. These are lasting and productive
jobs created in industry after industry.
In spite of expenditure restraint, the Budget has not lost
sight of our commitment to contLLinuing social reform. Because
inflation is higher than forecast at this time last year
for reasons that we are all aware of, we decided to restore
twice-yearly automatic indexation for all indexed p. sions
and benefits. This means that in addition to the Nk. ember
increase, there will be a further increase in May nc -'. year
in line with the rise in the Consumer Price Index.
We also decided to extend the eligibility for pensioner
health cards to single parents and their dependents. This
means that single parents will be able to take advantage of
benefits such as free pharmaceuticals. These changes will
also be available to repatriation pensioners.
On tLop of that, as promised in the 1977 policy speech, we
have decided that the service pension will be extended to
include allied servicemen on the same basis as for
British servicemen.
We have an unparalleled record of help for the handicapped.
This Budget builds on that achievement. Expenditure on help
for the handicapped has been increased by 14 per cent this
year. In the last couple of days many of you will have seen conflicting
headlines and heard conflicting reports about whether you
will get a tax'cut or not. Of course you will.. The surcharge
comes off in December. As a result, every Australian wage and
salary earner will pay less.-and keep on paying less tax
than would otherwise be the case. It is not a hoax or a myth.
We are told that Australians will be paying more tax after
December. That can only happen if wages go up after December.
If people have a larger income, obviously they expect to pay
tax on the extra dollars they earn. But let's not lose sight of
the simple and irrefutable fact from December 1, every
Australian wage and salary earner will have a tax cut, and for
a person on about average weekly earnings, that means paying
$ 4.45 less tax each week.
The Budget is an ec onomic blueprint that equips us to succeed
in a world environment of rising costs and greater competition.
At the same time, it responds to important social and
welfare needs. It is a further affirmation of our commitment
to build on the progress we have made.
000---