PRIME MINISTER
FOR MEDIA SUNDAY, 23 SEPTEMBER, 1979
ELECTORATE TALK
The Commonwealth Statistician gave the nation some
encouraging news this week with the publication of figures
showing that food prices are evening out.
In fact, the CPI food index for August fell by 0.6 of
1 per cent.
This, of course, does not mean that the fight against
inflation has been won. Far from it.
Several cost and price increases are already in the pipeline.
They will mean that the CPI for the September, and
particularly the December quarters, will inevitably rise.
The Ju ne national wage decision, oil prices increasing sharply
in July, and the sharp rise in the price of beef and other
-meats have affected the CPI.
The key point to be remembered is that these price increases
have already occurred, even though they will continue to
affect the CPI through the remainder of the calendar year.
Although the next few months will see inflation edge up
again, the downward trend that Australia has now enjoyed
for some time should reassert itself in the new year.
That will come about because the Government is-firmy.-
resolved in continuing with anti-inflationary policies--
policies that are paying off.
One has only to glance at the business pages of the daily
newspapers to see the renewed enthusiasm in the Australian
financial world. Large scale investment is taking off with
millions of dollars tagged for projects right around the nation.
They are the projects that will provide sound, rewarding jobs
for the working men and women of Australia.
One of the things that has been of great benefit to Australia
is that we have been able to keep our inflation rate below
that of most other industrialised western nations. We have not
sat back and blamed overseas developments. They are a fact of
life we have faced up to them, and are carrying out policies
that minimise the damage they cause. / 2
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In an earlier period, under Labor, inflation in Australia
shot up to 17 per cent levels 5 points above the average
of the and caused by policies pursued in Australia.
In the last 6 months, with an inflation rate ' round 9 per cent,
we are doing much better than the O. E. C. D. nearly
3 points below their average.
We are not suffering the agonies of Britain and the United States.
In Britain over the past 6 months inflation has been running
at annual rates around 22 per cent in the United States
at about 14 per cent.
In this climate our manufacturers and our exporters have an
increasing competitive edge both in Australia and
in overseas markets.
The Much improved international competitiveness of Australian
industry is demonstrated by the rise of 16 per cent in the
volume of manufactured exports in 1978-79.
And because of our almost unequalled natural resources, our
great mineral wealth and because of our lower inflation
we are attracting more than our share of investment.
Overall, more than $ 13 billion worth of investment in mining
and manufacturing are ready to go forward in Australia.
That's a real sign of confidence as hard-headed investors show
their faith in our country. We are, in short, seeing the
benefits of the Government's sustained responsibility in
economic policy.
At the* same time, let me recognise quite frankly that some
economic problems persist. The outlook is for a subdued world
economy and Australia cannot expect to be completely immune
from the consequences.
Nevertheless, we are in-a much sounder position than most of
the industrialised world to withstand those difficulties
and to make the most of the opportunities on offer.
One economic lesson we have learned from the decade of the
is crystal clear: nations plagued by high inflation
do little to enhance the welfare of their peoples.
That's why it's in the interests of all Australians and
not just business that we keep on with firm
economic management. It is a responsibility we will not shirk.
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