AS DELIVERED
' PRIME MINISTER FRIDAY, 13 FEBRUARY, 1981
ADDRESS TO BUSINESSMEN'S BREAKFAST
PERTH
I am delighted to be here in support of Allan Rocher, who is
translating himself from the Senate to the House of Representatives.
Ife has already demonstrated that he will be a very effective
and constructive member for Curtin. He will be able to contribute
very greatly to the workings of the Liberal Party and thd-
Federal Government.
I do not think there is mauch need for me to say very much about
Allan in regard to that, because he is well known here as a
very strong supporter of private enterprise and of the kind of
government that I think most of you would believe is important.
I do not really want to speak for a great while, because I want
then to hear your views, or to try and res-pond to questions.
But there are one or two points first I might make. It is plain
that over the last five years there have occasionally been one
or two difficult decisions. Much of this was building the
foundations of a strong Australia, a strong economy, which could
then march forward into the 1980s in a way that all people would
see the benefits of the work that had been done. In a sense, it
is like building a foundation. What has happened over the last
five years was all underground. Now we are up to the ground
level and over the years ahead of us, I think it is going to
be above ground and clear for everyone to see.
Five years ago Australia was economically very sick indeed.
We were worse than the world position on nearly every count
that you would like to take; whether it was inflation, or growth
or productivity. But now that has very largely been reversed.
It is much easier to get an economy moving if you are going with
the world trend, if world trade is growing, if world productivity
is rising, and if inflation is low, then an economy can be dragged
along with that. But we have achieved very significant advances
swimnung upstream, against the trend, with world trade sluggish,
with growth in major economies falling not even standing still
in a number of instances. with growth in major economies falling
and with inflation around the world rising. Against most of
that, we have done very well indeed. It worth noting that the
OECD forecast for the whole area in real growth in GDP is only
1% in 1981, but that is quite a different picture for Australia,
where they estimated 4% growth. That I think, is the highest.
estimated by that organisation for any OECD country. That ha~ s
obviously only happened as the result of consistent policies,
co-operation between States such as Western Australia and the
Commonwealth, and policies that have been persistent and enduring
and working to the advantage of industry and of all Australians.
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Some might think that this growth is just taking place in
the great resource industries, in the great mining areas, but. it
is much more broadly based than that. There has been a surge
in strength, growth in investment in the private sector, and.
the last Bureau survey suggests that real business fixed
investment for 1980 was up 25% on the year before. That again,
is not a bad effort, having ii mind the picture of what is
happening in countries such as America, the United Kingdom,
France and Italy.
Oil exploration estimates are the highest since 1969, so that
is a great turn around. The Department of Industry and Commerce
forecast of either firmly committed or final feasibility stage
mining and manufacturing projects is now up over $ 33 billion.
I can still remember that second election in 1977, when I came
out with a figure that Australia was standing ready to go with
$ 6,000 million worth of investment and development on the
same definition. Everyone knew that Labor had stopped the
country so dead in its track they thought this could not be
possible. How could there now be $ 6,000 million worth ready
to go? Well, there were, and in the two years after that, that
figure of $ 6,000 million was in fact exceeded. But that
figure of $ 33 billion, of which $ 10 billion and $ 11 billion is
estimated to be taking place in this State, is a great
challenge because the kind of problems Australia is going to face
are in a sense the reverse of those that confronted us five
years. I would much sooner, though, have the problems of trying
to accommodate all that great development in a sensible and
reasonable way, of having this country march forward, of having
the problems of shortages of skilled labour, but then having
policies that are designed the overcome that. These are much
better problems than the problems of drought, the problems of
difficulty, the problems of company losses and people going
bankrupt because inflation is too high and the whole country is
stagnated. . The problems of moving forward, and moving forward
rapidly, can be real. They can be challenging, but they are
the kind of problems that we ought to have. In fact, they are
jIKi. Ir . the kind of problems.-we-have been working to have over the last
f i: e'-: as-Iam, ddit, has come about that way.
rshould nobtbe intimidated by the size of the task, by the
:"--great scope7. of the investment that is planned and intended to
. Itake place-in Australia. That also is a challenge. But there
w ili be---soe who say ulook, this is beyond us, it is too much.
IWe will not be able to get the shortages of skilled labour filled,
and there will be other bottlenecks". Well, if there are
let us see if we cannot break the necks of those bottles open
and let us get this country moving forward as rapidly as possible.
The growth in many areas is broadly based across Australia
and across industry. Even though it is only in the early stages,
empl6yment increased by about 170,000 last year, by 30,000 or
more in this State double the Australian average. That is a
Sgreat tribute to the policies of this State and what can happen.
None of this has happened by accident. It has not happened just
because Sir Charles has spoken about development and ( inaudible),
or because I have. It has happened because of the consistent I
application of policies which are designed to keep inflation
below that of many of our major trading partners, which do restrain
Government expenditure, which keep taxes as low as possible/ 3
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consistentwith asensible and responsible budgetary approach
to the affairs of the nation. It is very easy sometimes to
say that taxes will be lowered, but if taxes are going to be
lowered, it has got to be done responsibly and it has to be
matched in broad terms by reductions in Government expenditure.
I think it is same for any family. If you are going to spendinore
yo. have got to have resources to cover the debts, and so it is
with a nation. You cannot spend on the never-never, whether it
is Governments or whatever. If taxes are going to be reduced,
you have to be able to cover that in a responsible and reasonable
way. The tax reductions which Ian Warner spoke of have been
consummated within a sensible and responsible overall approach.-
to the management of the country's affairs.
For those who are technically inclined and I mention it simply
because there has been a little laxity in this area for a great
variety of reasons over the last couple of years but in the
last six months growth, to December, the money supply growth
has been within the estimated Budget range. I know very firmly
that it is John Howard's intention to keep it there. To the
extent that wage determinations might be higher or larger than
we believe is appropriate..
( Tape turned over)
that I have been speaking, but also the problems of
militant unions, and this is something which I do not believe
any Government ha6 completely and totally got the answer to.
What you really do need is a changed attitude, a changed
understanding amongst many people. I heard on an ABC programme
two or thre3_ months ago one . of the most militant union leaders
in the United Kingdom coming out quite plainly and saying " well,
we got and we accepted a 6% wage increase because if we had
pushedfor a higher wage increase than that there would have been
more unemployment in our own industry". This was one of the real
left wing, radical trade unionists in Britain. I think
Margaret Thatcher, with quite rigid application of policies, has
achieved-a-significant change in attitude in the United Kingdom
amongst other union leaders. They are getting some more sensible
wage agreements as a result. But where do you find that kind. of
responsibility amongst Australian trade union leaders? I think
we need to remember sometimes that one of the most favourite
sons from this State is the architect of the madness of the wage
policies in the Whitlam years, and of the excesses to which the
-Z AC has consistently pressed.-It is in fact Bob Hawke ' s policies
that led to the kind of wage escalation in the 1974-75-period.
He was in charge of the ACTU at that time, and the proponent of
the policies which said ' well, we will get everything we can out
of the system, and then we will screw industries for as much as
we can get above and beyond that'. That is still the policy of
the ACTU. But is it not fair enough for this country to look
for something a little more responsible from people who we know
must realise that that kind of policy is just madness for thEir
own constituents, for employment and for commonsense and
the strength of this nation. / 4
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In the union area a changed attitude is necessary. We are
trying to assist that change in attitude with certain actions
in relation to the Builders Labourers Federation. While I know
it is mostly an Eastern problem and mostly a Victorian problem,
that particular matter is going to be pursued with the utmost
vigour. We made a decision because the various court cases
had got to the point where were able to do that. Construction
at the Omega base is just going to go ahead no matter what.
That is happening, but that is not the end of the matter and
it is not the end of the argument with the Builders Labourers
Federation which has done enormous damage to my State and which
I know quite well has prevented people from going ahead with
major construction projects in Victoria simply because of the
policies of Mr. Gallagher and the union leader who has robbed
the State of Victoria over the years of tens of thousands of jobs.
That is the kind of industrial blackmail that this country can
no longer tolerate, Governments are going to have to co-operate
very closely, to have reasoned and sensible policies. What we
are really after is that change of attitude which will make
everyone understand, and know, that if commonsense and reason
0 can only prevail there is an unlimited future for this country and
prospects in the 1980s which cannot be matched by any other
advanced Western country anywhere in the world. It is all within
our grasp.
Over the next two or three years I think we are going to seal
the success of this decade in what is going to happen. I know
that Western Australia is going to be very much in the forefront
of these great developments. The future of this State with
Sir Charles and his team is unlimited. This is exciting indeed.
If anyone doubts, well just take another trip to Britain, or
another trip to the United States you had better do that quickly
because the scene there might be changing quite dramatically.
But many countries overseas now envy the Australian economy
and the prospects and possibilities that are open for successful
enterprise, for making profits, for providing employment and for
building a greater nation. 000---
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