PRliVIE MIN I TEM 6 Jul 1980
ADDRESS TO THE WESTERN AUSTRALIAN
LIBERAL PARTY STATE COUNCIL
We meet at this State Council in challenging but poLcntially
rewarding times. Conditions in many overseas countries are
extraordinarily difficult. The accumulated effects of inadequate
economic policies; the steep and recurring increases in the
price'of crude oil; these have contributed to reduced productivity
and lower growth rates in many countLies in the industrialised
world. Because Australians have read in recent days about recession
in the United States; because they have read of the inflation
rate in Britain of over because they have read of the
United States and British economies actually declining this
year as production falls; they may be tempted to express concern
about our own future.
But despite the difficulties that are being experienced overseas,
I want to put it to you that there are very sound and well based
reasons for having confidence in our future. Indeed, we are
uniquely placed to meet the challenges of the 80s and to share
significantly in its rewards.
The eventful and exciting week that I have just spent in
Western Australia, confirms the spirit of confidence that: exists
in Australia about our prospects for the future. A new sense
of purpose is emerging in our national way of life; an enthusiasm
about our capacity as a nation; and a faith in, and a commitment
to, our future.
This faith is based, not on rhetorLc or political sctacement,
but on economic reality. Under Labor. Australia's inflation
rate had soared to 5 percentage points above the OECD average.
Today it is below this average and the margin in tavour
of Australia hls been growing on the basis of published statistics.
The latest available inflation figures show Australia's inflation
rate at 10.5%; less than half that of the UK; and significantly
below the USA rate of nearly 15%. Indeed, over the last year,
accentuated by the pressures of oil. prices and oE some commodity
prices, inflation in Australia i. ncreased by a little over 2%,
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much less than the increases in the United Kingdom, the USA,
Japan, Germany and France, where the average rate of increase
for all these countries was over But this is only one-measure
of Australia's improvement. We have reduced the Commonwealth
deficit; our industries are now competitive; manufactured
exports are up; and our balance of payments position is sound.
Overseas capital is being increasingly attracted to Australia
for major development of and investment in, Australia's
resources. We have access to markets in Asia and the Pacific
which can boast some of the fastest growing economies in the
world. Because of our geographical position, we are closer
to these markets. And that makes us a more attractive source
of supply.
But there are other opportunities for Australia as a result
of increases in the price of oil. Such increases have raised
the transport cost of bulk commodities. This will contribute
to Australia being increasingly seen as a country where our
natural resources and our vast coal-based energy reserves
are brought together in an expanding programme of raw material
processing. This is a decade which offers new horizons in investment and
development. A recent report in the Australian Financial Review
made explicit the confidence of British investors in the Australian
economy; a confidence which they were reported as having said they could
not gain elsewhere; a confidence which in the words of the report, " was
conditional upon the continuation of a Liberal Government."
These investors proclaimed Australia as a country featuring
a well managed economy, stable government and good prospects
for the future. We have come a long way since 1975 when
investment in Australia had ground to a halt. But the kind of
success we enjoy has not happened by accident. It is aproduct
of our general economic policy; our opposition to inflation
and our incentives to investment; all these have'lent impetus
to private sector activity.
The Government is determined that a national programme of
resource development should take place efficiently, in such
a way that Australia will be a low cost producer in decades
to come. The oil crisis of 1973/ 74 had underlined the potential
disruption and instability that can be caused to Western
economies too much dependent upon Middle East oil; and this
has been re-emphasised by the oil crisis of-the last 18 months.
While these crises have posed problems for all countries, including
Australia, they also offer opportunities for us that we are
determined to take. As a result of co-operation with State
governments and private industry, we are now embarked on a
great programme of national development. This has ' required new
initiatives from government. In the past, much of our national
development has depended upon getting long term export contracts
for iron ore, for coal and for other major resources. Of course
that will continue and'the demand for coal will increase as
a result of the dramatic increases in the price of oil.
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But because of the changes in the world energy situation, Australi.
has a unique opportunity to bring together our natural resources
and our capacity to produce, by world standards, relatively
cheap power. But for this to happen, new initiatives are being
required of governments in order to increase their capacity
for electricity generation. To make sure they respond adequately
to the challenges of the new decade; to make sure that Australia.,
through private enterprise, is capable of taking advantage
of the great opportunities before us; the Commonwealth convened
an historic Loan Council meeting in 1978,
At this meeting, agreement was reached with the States for
a special additional borrowing programme to provide necessary
facilities and alternative sources of energy for Australia's
programme of national development. Since then, special borrowing
authority has been given for just over $ 4,700 million of projects.
$ 1,200 million of this is for projects directly associated
with resource development. Almost $ 3,000 million has been
approved to increase Australia's electricity generating capacity.
Over 20% of all borrowing approvals over $ 1 billion is
for projects in Western Australia. And over 50% of the special
borrowings for resource projects is earmarked for W. A.
If we are going to plan adequately for our future, we must
have better and more efficient transport, espec. ially in a country
as large as Australia. Therefore, we are planning to upgrade
and electrify significant railway lines in Australia.
Through all these programmes the Commonwealth, in conjunction
with the States, will be assisting private investment worth
many times that which the governments themselves will be undertaking
The development being supported by government is necessary for
the industrial strength and vitality of this nation. It is
necessary for attracting continuing investment from within
Australia and overseas. Published figures bear witness to the
extent of this investment.
In my election speech in 1977, I announced to the Australian
people that " Australia is ready to go with 6,000 million dollars
of development". I indicated then that " in the coming . three
years we can look to other vast developments".
This trend has gained momentum. In the two years after 1977,
more than 6,400 million dollars of investment actually took
place. But now many more great projects are coming on line.
In the latest survey of the Department of Industry and Commerce,
the total value of Australian mining and manufacturing projects,
at the committed or final feasibility stage, had risen fro:, i
just over $ 16 billion Last October to almost $ 29 billion in
May this year.
Of the total projected investment, more than $ 19 billion is
in mining ventures; $ 9 billion in manufacturing. And Western
Australia, with less than 9% of the population, holds about
of the total investment reported in the survey more than
8 billion dollars.
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There is not the slighest doubt that with a well run economy
in this country; with the high cost of transporting raw
materials overseas; with the availability of natural
resources and cheaper supplies of energy, there is going
to be more processing of our raw materials in Australia.
This is already happening in the aluminium industry where
there is over $ 4 billion cf new investment right around
the country. Australia is experiencing an upsurge of
investment in basic resources that will keep our economy
expanding through the decade to come.
It is fair enough to ask what this upsurge means to the
average Australian; what all this resource development means
to an Australian family wanting a decent education for its
children and a secure future for them in this country.
It if fair enough for this question to be asked by those
who believe that this is the best country in the world
in which to bring up a family.
The answer is straightforward. A aation can only consume
what it produces. If a family spends more than it earns,
trouble lies ahead. So it is with a nation. A nation cannot
consume what it doesn't work for. If we want improved
standards of living; if we want improved education, health
and welfare programmes; the kind of roads which your Premier
fights so avidly to achieve; all of these can only be
provided from the wealth earned by the people of this nation.
Ther . is no particular value in resource development for
its own sake. Its merit lies in the jobs that it provides
for Australians; and in the opportunities that it makes
available to individuals and to our community to share in
a high standard of living as a result of sustainable
economic growth.
The level of economic activity currently underway in
Australia demonstrates a new respect for Australia and a
new confidence in our future. This activity is broad based,
shared by our great rural industries. Because the government
has been able to secure better markets for our rural exports
Australian farms are entitled to be optimistic abou their
long term future.
Prices [ or sheep, for wool, cattle, wheat, suga and for
other smaller but important rural industrics arc reasonable
It is not often that this happens at the oie i
Manufacturing industry -is also doing much better. Last year
manufacturing exports increased by nearly
Australia is on the go. OL~ r policies are designed to enable
all Australians to save and be independent; to. manage their
own affairs; to make decisions about their families; and
to secure their own future:. through the rewards from their
own efforts. In this sense, Liberal policies are policies
of opportunity. But they are also policies of concern for
those who-are disadvantaged and in need of more particular
help. In these last four years, while practising strlngent
government restraint, our welfare commitment has not been
compromised. Care for the aged is an important concern of
the whole cornmunitf, as it is of governments.
In significant measures to secure this, the Government has
replaced the complex means test for aged pensions with a
fairer and more easily undertandable income test. We have
approved the building of over 500 new self-contained hostel
and nursing home projects and have already determined that
this programme will continue for the next three years.
These initiatives have been complemented by our concern
for the family.
We have introduced family allowances designed to help low
income families. By July the first this year, the spouse
rebate had increased from $ 400 to $ 800 during our term of
office. The sole parent rebate has arisen from $ 200 to $ 559.
Since we came to office, we have extended the supporting
parent's benefit to include supporting fathers.
This represents pioneering assistance to single income
earners. In our first budget, we introduced triennium funding
to enable organisations to provide more certain and
effective help for handicapped persons.
Over the last three years, the funds that we have
made available through this programme have increased
by almost 80% in real terms, over the levels that
operated in the last three Labor years. Further
sums for capital and recurrent expenditure have
already been approved by the government for the next
three years and these will ensure continued expansion
of services for disabled people.
These services include the provision of training
centres and sheltered workshops Eor handicapped adults;
day training centres for handicapped children;
activity therapy centres; and residential facilities
for people who need special accommodation to enable
them to engage in normal outside employment. With
these facilities, disadvantaged people are able to
demonstrate to themselves and to their own families
and communities that they have skiLls; and that,
with these skills, they can cQntribute usefully to
society and to their own self-esteoe. Beyond thi. s,
we increased the handi capfed clii. dren's allowance
by 50% soon ifter we came to office. / 6
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At that time, it was only paid to the severely handicapped. In
1977, we widened the eligibility for the allowance
to include substantially handicapped children whose
family income is low. We have widened the eligibility
criteria for rehabilitation assistance. The result is that, in
the year ended June 1979, a record number of people was
accepted for rehabilitation. And in 1978, we recognised the
special needs of handicapped students when we extended the
allowance to cover students over 16 and under 25 who are not in
receipt of an invaLid pension.
These are significant achievements. As politicians and as a
party, we have sold ourselves short on our policies of concern,
and our achievements that have resulted from them. These
achievements have not been adequately recognised, yet they
represent a massive commitment to the needy people of the
Australian community. Not only do our achievements demonstrate
that we are better economic managers than our political
opponents, but also they represent a record of concern for the
disadvantaged in realistic and practical terms that will stand
the test of time. It is because of these achievements; it is
because of our policies of opportunity and concern that we are
entitled to feel-optimistic about Australia's future.
But we need to understand that the competitive gains
we have made have been hard won. We also need to
understand that gains so painstakingly made can be
easily eliminated by irresponsible behaviour and irresponsible
policies. There are two things that could destroy Australia's
future. First, the strike action of left wing, extremist and
often Communist led unions which dislocates significant
industries and could place in jeopardy our economic
recovery. And secondly, the kind of policies that
our political opponents, increasingly subservient to
the left wing, would put into effect if they ever
again won the confidence of the Australian people.
Only last year, strikes in the Pilbara region resulted in a
loss of iron ore exports of more than $ 100 million. Over
one-quarter of a million man days were lost.
At a time when our industries have achieved a competitive edge
in terms of cost atid price, we caniot afford to sacrifice these
gains by developing a reputation unrcLi. able suppliLers.
ReaL success lies inri Front of us in a dilT icult worl. d, Long
as we do not defeat ourselves. The ComFonealth and thi. State
have both legislated to strenthen our industrial laws. ' fhe
Trade Practices Act now applies to secondary boycotts. Yet
resolutions of the ALP. conference in Adelaide last year,
binding on every member of the ALP, show how little the Labor
Party understands the-need for this. / 7
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For at that conference the Labor Party committed themselves
to the: " Rights of unions to regulate their own
affairs.. . free from government and judicial
interference".
Labor is also committed to:
".. repeal. all penalties for strikes against
decisions of the ( Arbitration) Commission
or a c-onciliation committee..."
They are further committed to prohibit,
clauses in awards or agreements
( which prevent) the right of-workers to
resort to industrial action".
And in case that doesn't cover every union which wants
to do as it likes, the Labor Party has further committed
themselves to guaranteeing the,
". immunity of unions and their members...
in. . furtherance of a. Labor dispute".
Such immunity is not available to any Australian citizen
or to any corporation. But i~ f by supporting such policies,
the Labor Party want to commit themselves to perpetual
opposition, who are we to complain. The Australian
electorate will never support a political party which
seeks to place the union movement, large and powerful
as it is, above the law. Yet, at its conference last
year, the ALP endorsed a deal between Mr Hayden and
the Socialist left which made sure that future ALP
economic policy would be dominated by the trade union
movement. It was later revealed that this policy was written
by Mr Hayden and the Amalgamated Metal Workers and
Shipwrights' Union; the union with the most left wing
and irresponsible leadership in the country. / 8
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It was a policy which Mr. Hawke called " a gutless sellout
to the Left". It was this socialist left that Mr. Hawke
later described as a ' canker' within the ALP; a canker which
now claims Mr. Hayden as its captive.
We are entitled to ask whether such an extreme movement,
is not bent on undermining Australia's economy
and doing grievous damage to the fabric of our free society.
As a measure of the control exercised by the left wing
within the ALP and the ACTU, we are now in the midst of
the selfishness and stupidity of the 35-hour week campaign.
It is a campaign that can only lead to more unemployment;
to higher prices; and fewer goods being sold here and
overseas. Already, Alcoa have indicated that they will
shut down the Pinjarra plant. And if the 35-hour week
campaign were to succeed, many other businesses will be
damaged and many more people will be unemployed. Regrettably,
it is a campaign supported by resolutions of last year's
ALP conference and ACTU congress.
On this issue, the whole Australian community must make it
perfectly plain that to avoid damage and disruption to
Australia's economic recovery, the campaign for a
week must-be defeated with all of the vigour we can command.
If the Labor Party is serious about economic growth which
alone can lead to more employment, let it abandon now, by
example and by direction, selfish and irresponsible claims
to shorter working hours. Let it condemn the level of
disputation provoked by militant left wing union leadership
in pursuit of unreasonable demands. Mr. Hayden once said
that he would condemn irresponsible union action, but he's
not yet found an irresponsible union act to condemn'
It is no wonder a journalist in the Melbourne Age only
recently was prompted to remark that: some aspects
of Labor policy as presented by senior spokesmen are
remarkably-similar to those of one or other of the
Australian communist groupings".
Indeed, in relation to the Soviet invasion of Afghanistan,
while the Labor Party have verbally condemned the Soviet
Union, they have sought to frustrate all actions designed
to demonstrate effective international opoosition to
Soviet expansion. The Australian coLmnunity is entitled
to ask why.
It is very hard to name another major poli.-: ical party
that has taken tho same isolaLed attitude; an attitude
that has, to our repugnance, put Australia alone alongside
comm. unist Laos and communist Vietnam itt our part of the
world. / 9
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Why does Mr. Hayden try to suggest that President Carter
is reacting to the invasion of Afghanistan for domestic
political reasons? It is totally of~ fensive to a major
dEfence ally and traditional friend. Does he suggest that
Margaret Thatcher, who has just won an election, is taking
her stand for domestic political reasons? Or Pierre Trudeau,
who announced the same policy just after his eleccion. * Or
Mr. Muldoon and Mr. Rowling, the Labor leader in. New Zealandhave
they taken their stand for political reasons?
Mr. Hayden's capacity to deny Aust-ralia's true interest
and to offend our traditional friends is as great as that
of his predecessor.
In my statement of 19 February this year to-the Parliament,
I said that in the light of Soviet actions in Afghanistan,
there existed an urgent requirement for independent nations
to demonstrate to the USSR in a convincing fashion, and beyond
any doubt, that the will and resolve to meet new challenges
exist. The main burden of-doing this must inevitably fall
on the USA. But it is essential that Australia, along with
other allies, provide as much support as possible. The
cohesiveness of independent nations around the world can
have a profound influence on the behaviour of the USSR.
With the invasion of Afghanistan, the Indian Ocean has
assumed a greater strategic significance.
Because of the difficulties of the world situation, the
Government has announced a greater allocation of resources
to defence. Under the five-year programrme, there will be
an average increase in defence expenditure of per annum.
in real terms. This is indicative of the Government's resolve.
There are direct implications for Western Australia in this
develo'ment. We are expanding the facilities at Cockburn
Sound. Our ships are base-ported there now; by 1983, when
facilities are established in' the area, they will be homeported
in Cockburn Sound.
We have discussed the use of these facilities with the U. S.;
and have offered them the use of Cockburn Sound, if they
so wish, for significant units of their fEleet. The Learmonth
Air Base is to be expanded and imo-roved; to f ill the gap
between Learmonch and Darwin, a major _ RAAF base is being
established at Derby, at a cost of nearly $ 50 million.
An amphibious training area will be established in Western
Australia where our forces, and those of our allies, will
be able to exercise.
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We have made a number of other major decisions on defence.
We have ordered a fourth FFG guided missile frigate and
new tactical fighters will be ourchased.' All the Orion
surveillance aircraft will be equipped to carry the harpoon
anti-shipping missile. At a cost o'f around $ 80 million, a
second underway replenishment ship will, be built to enable
our combat units to stay at sea for long and extended periods.
We will order additional Patrol boats t o be built at Cairns.
And we know we will have the support of the whole community
in expanding the Army Reserve to 30,000 by the middle of
next year.
Our defence programme takes full account of our paramount
responsibility to all Australians. This responsibility
increases with our recognition that, in a difficult world
order, we have much to be thankful for. Our strong-and
competitive economy has recharged our national capaci ty;
confirmed our success as a government. Sometime later this
year, as a Government, and all of us as Liberals, will be
judged before the court of the Australian people.* Once
the result of the election was clear on 13 December, 1975,
I made it plain that the purpose of my Government would be
to govern fairly and responsibly for all the people of
Australia. I believe we have discharged that responsibility
honourably and with a sense of purpose.
Now another election lies before us; of great importance,
especially for those of us with a deep faith and conviction
about the future of Australia; with an idea and a new ideal
of what we want Australia to become. What happens to
Australia matters very much.
We have a particular philosophy in which individual men
aind women are paramount; a philosophy which recognises
that. the end of government is -not power or authority, but
the service of people,-their freedom and their dignity;
their self-esteem and their capacity to lead rewarding lives.
Your support in the weeks and months ahead is enormously
important in the task of securing Australia's future.
Your understanding, of our policies, Your knowled 4ge of
the difficult decisions; your advocacy and your defence
of those policies and decisions all these are vital
elements to our continued success.
The Western Australian Division has always, been vigorous and
hard working, and I thank you fur all your support over t. me
past years.
But elections that lie ahead of us are always more
important than elections already won. Every election needs
to be fought hard with all the strength at our command, and
I know the full force of this Division will be directed to
that purpose. ./ 11
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Australia has an unparalleled future.
As Liberals, we have a great responsibility, and a great
challenge to see that what we achieve today, improves
for our children the quality of the life they will lead.
Let us accept that challenge and pursue it single-mindedly;
with energy, commitment and success.
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