PRESS OFFICE TRANSCRIPT TUESDAY, 29 JANUARY, 1980
PRIME MINISTER INTERVIEWED BY STEVEN FOX, ASSOCIATED PRESS,
LOS ANGELES
Question After I dictated to my office I was standing next to several
of the gentlemen who attended the lunch at ( inaudible) and one
of them said one of the problems about investing in Australia
is that there is a lot of labour strikes. Is that correct?
Prime Minister
There are a lot of strikes; in the last international figures
I saw somewhat less than in the United States on a per capita
basis. Question Do they tend to be more wild-cat though and more disruptive
therefore? Prime Minister
No. They are generally over wages or
Question But I think that is predictable.
Prime Minister
It might be less predictable if you do not know the scene.
You have got to study the industrial relations scene and a great
deal depends upon the management of particular corporations.
If somebody had said-that, then I wish he had asked me a question
Question I noticed there was an absence of questions at the end. ( about strikes).
Prime Minister
It has not stopped a great many corporations investing and making
good profits.
Question California is very heavily in aerospace and of course resource
materials too. Some of the gentlemen here work for oil companies.
Do you think Californian companies have taken as much advantage
of opportunities in Australia as they might?
Prime Minister-
I think United States companies as a whole have taker. a good slice
of the opportunities that have been going. Over the last 20 or
ASSOCIATED PRESS INTERVIEW -2-
Prime Minister ( continued)
years many United States' corporations have been skilfull,
through their own judgement, in getting into areas where they
have made high profits, good profits. There have been one or
two difficult years in Australia as they know and we know.
That is behind us. There are many more
opportunities for the future, but there might be more competition
for those opportunities because I think there will be greater
European interest, much greater German interest, and greater
interest in investment from Japan. One or two Californian
companies may have been inhibited in the past by Californian
environmental rules, which had got in the way of investment in
Australia not from anything that was going to happen at the
Australian end, what might have been happening at this end.
You might take longer to get through the environmental
maze than we wrould in investment decisions in Australia.
* Question
I am not quite clear on how our rules would affect their decision
to Prime Minister
Well, if you want to buy natural gas from Australia and you
have got to get permission to ship it to California, for example,
you need to have environmental approval to put up gas tanks
on the Californian coast.
What areas would you think would be the most promising for
U. S. companies in Australia. Obviously minerals
Prime Minister
Minerals, resource areas. But I would hope a much greater
degree of processing in Australia, because we can provide by
world standards, cheap electricity based on coal. As oil prices
rise further, I would believe it is going to make much more
economic sense to conduct processing in Australia.
Question Could you give me some specific examples of what you mean?
Prime Minister
Well, the development of the alui-rinium smelting industry in
Australia is a classic example. It has $ 4 billion worth of
investment in that area going into Australia at the moment.
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ASSOCIATED PRESS INTERVIEW 3-
Question So do you mean processing of raw materials primarily
Prime Minister
Yes. Question For that manufacturing?
Prime Minister
Manufacturing also. Our manufacturing industry is pretty
cost competitive at the moment. It is able to get in
and compete in a large number of markets right around the
-world. If people make a good product that is well designed
and well produced, that does open up opportunities for Australian
manufacturing, not just to supply the Australian market.
I think the objective ought to be, when manufacturing takes
place in Australia, to do it on a basis of exports as well.
For example, the motor industry is starting to get into
worldwide production.
Question Unemployment in Australia now is about 5 1 per cent, or 6?
Prime Minister
This is the seasonal peak at the moment. Between 5 and 6.
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ASSOCIATED PRESS INTERVIEW -4-
Question Is there an opportunity there for American workers, to immigrate?
Prime Minister
Skilled workers, yes.
Question What trades would that be?
Prime Minister
I think through most of the skilled trades: through the metal
trades. There would be opportunities in some of the remoter
parts with resource development that is undertaken. With the
North West Shelf very likely to get under way there could be a
considerable need for people. Our Labour Department keeps a
current list of skills that are in short supply in Australia.
It is modified, and changed. It is monitored. It is
hard to get into Australia, obviously, if there are unemployed
Australians who could or want to fill the vacancies. But on the
other hand, we do not want projects held up because of a
shortage of skilled labour.
Question Is there much protectionist sentiment in Australia?
Prime Minister-
I think less than in many other countries, but there is
protectionism in Australia. I gave the answer downstairs. No.
In broad terms the level of protection is less than it was.
Question How long ago? Less than 10 years, or
Prime Minister
There has been a fairly steady movement I think. Certainly less
than 10 years ago, yes. We have not gone into all the new
protective devices and sophisticated protective devices, so a
straight-out comparison on tariff levels gives a very unreal
view of protection in Australia.
Question Parkinson ( Sir Nicholas Parkinson) spoke recently of what he called
the damage to the constituency that Australia has in the United
States. Could you expand on what he was talking about.
Prime Minister-
I did not hear the speech, and I have not read the speech, but
he might have been referring to the fact that very large numbers
ASSOCIATED PRESS INTERVIEW
Prime Minister ( continued)
of United States' servicemen were in or went through Australia
during the war. As time passes they get a little older. There was
a group of people who got to like Australia during those times
who had an affection for Australia out of their own personal
experiences. Whether that is what the Ambassador was referring
to or not I-am not sure, but that seems to me to make sense.
* Question
He made reference to efforts to rebuild that constituency, or
to strengthen ties between our two countries. What efforts are
you making
Prime Minister
I think the natural relationship tends to keep Australia and
the United States reasonably close together. Also, events over
the last three or four months are likely to bring the two
countries closer together because we have very similar views about
a number of present concerns. That is likely to lead to a
similarity of policy in a number of areas, and also make more
relevant for example long standing associations such as the ANZUS
defence alliance. When there are no international worries these
things can go into the background, but in the current climate
they are much more likely to come to the fore. I have already
said that we are prepared to co-operate with the United States,
to undertaken greater patrolling and sufveillance in the Indian
ocean for example. The practical associations, whether they
are out of defence or through business co-operation, business
investment, the normal interchange between our peoples, these are
the things that add to the strength of a broad relationship.
The much cheaper air fares that are now between this country and
mine are encouraging a much higher level of tourism, I think in
both directions.
Question Is there anything you would single out as one main, or primary
barrier to increased economic relations, commercial relations.
If there was one problem ( inaud) what would that be?
Prime Minister
I do not think there is any one problem of that kind. The sort
of thing that would help us most is runningthe economy well,
tightly, keeping inflation lower than many others. That attracts
business investment to Australia, I would imagine in an increasing
number of areas. Now that can be lost very quickly if an economy
is mis-managed, if inflation runs riot. Some. of those people
at lunch would have mentioned American concerns that left
Australia in the ' 54, ' 55 period, but those who have stayed are
very glad. I think many others are now starting to think of
involvement in Australia, because again, the fact that we have
large quantities of many minerals and resources and a plentiful / 6
ASSOCIATED PRESS INTERVIEW -6-
Prime Minister ( continued)
supply of certain forms of energy in Australia, is going to mean
that there will be increasing investment opportunities open in
this decade.
Question For technology primarily, or capital in technology ( inaud)?
Prime Minister
Oh, both. A country like Australia needs foreign capital.
our own capital market is too small. We cannot provide for the
kind of developments that are taking place, that could take place.
We could not find all the capital ourselves. A number of the
projects are just too big.
Mr. MacKellar ( Minister for Health)
Just one thing on immigration. You mentioned specifically
skilled workers. Not only skilled workers, as the Prime Minister
has said, but we are also anxious to bring to Australia if we
can, a thing we call entrepeneurs those with capital
to invest, bring new technology to Australia, set up businesses
in Australia, which will provide employment opportunities within
Australia, so there is a broad range of approach to the question
of immigration.
Question Are there any fields you can identify as being
Mr. MacKellar
It depends. Each application is assessed on its individual
merits, but it is a flexible approach. Hopefully, there would be some
people in the quite a number of people in the U. S., who
would respond to that sort of challenge.
Question Have your laws been changed recently to make it more easy for
a small business to come into Australia?
Mr. MacKellar
we have brought in new immigration guidelines recently, yes, which
, does emphasise amongst others, this category.
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