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PRIME MINISTER
For Media SUNDAY 29 MARCH 1981
ELECTORATE TALK
I find when I go around the country that people sometimes
ask me: when is the Government going to loosen the purse strings
and spend a bit more on projects that they think the comminft-itY
needs? Let me explain the dangers of this approach. Many people seem
to think that the policy of restraining Government spending that
we have adopted since 1975 has been necessary only because times
have been hard only because there have been serious
economic difficulties such as rising prices and unemployment.
Some people seem to think that once the worst of these problems
are, behind us, then Governments. can begin spending a lot
more again.
There are many things that we can see are needed in our local
communities. We need better roads; we might like an improved
park; we might want to see more spent on a school or a
hospital;' It is very natural that People will ask Governments
to spend more, and let me say that throughout all the time that
we have been restraining Government spending we have always
made sure that really worthwhile projects particularly projects
to help people who are disadvantaged or poor and in real
need can go ahead.
I might just mention here that spending on the handicapped and
disabled has actually doubled in the last five years and we are now
spending over a billion dollars to help these people. Helping
those in need has been one of our main concerns while we
have tried to restrain Government spending in areas which do
not have such high priority.
The important point I want to make tonight is that higher
Government spending-does not necessarily produce improvements
i~ n our community or in our country. While some people may
benefit, very serious problems can be caused to other people when
Government spending is too high. After all, all Government
spending has to be paid for by taxation. Governments do not
have money of their own to spend. The money comes from you the
taxpayers. And the more governments give in to the demands of
people to spend more money the higher your taxes are going
to be. ./ 2
-2-
We have taken the view that Australians need lower not
higher taxes and our policies are direct4 d to achieving
this. We have taken the view that peopld know how to spend
their own incomes a great deal better than officials and
politicians do. We believe that in the end this-produces-. a
much more satisfactory life for everyone than taking
away people's income so that governments can spend it for
them. Government spending needs to be kept for those matters
like defence, education, social security and other vital
public services which people can't easily provide without
Government. I think this point is probably well enough
understood.
What I find is not so well recognised is that high government
spending can actually create social problems and the two
most serious problems that it has created in recent years
have been inflation and unemployment. Let me just talk about
unemployment. Government spending which is too high can destroy jobs. Most
jobs in our community three out of every four jobs are
provided by private enterprise. Private enterprise can only
grow and provide jobs when it can obtain the money to expand
and when people have the confidence to buy. When governments
spend too much there is less available to private enterprise,
particularly to small businesses which provide most of our
jobs. They can't expand and as a consequence people can't
find work. The government has to make room for private
enterprise. I am sometimes asked why the government doesn't do more to
make work. The government is concerned to create jobs that
are productive, jobs that have a future. I do not believe that
the taxpayers want the government to spend massive sums on
dead-end, short-term jobs. And that's why the government
rejects make-work schemes which drain money which private
enterprise needs to create productive jobs. We prefer to
give assistance to employers to take on more people. We
have set up a programme called the Special Youth Employment
Training Programme under which 75,000 young people will be
helped this year in this way. The G overnment gives very high
priority indeed to helping young people particularly to obtain
the training afid skills they need to get satisfying jobs.
You may be surprised to learn that in this current year over
200,000 youpig people under 25 years of age will be assisted
by government training and employment programmes.
The Government is very concerned to see that our school system is more
successful in helping our young people obtain the necessary skills for
jobs which are opening up, now that the signs of economic
recovery are all around us. Now that private enterprise is
pibking up-the ball, thousands of new jobs are being created
and employment is growing steadily despite what some people
have said.
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It is even more important for governmenrEtto continue to be
responsible in its own spending programmes so that private
enterprise can take full advantage of the magnificent
opportunities now opening up. Restraint in government
spending is a policy that is helping to create a strong
and vigorous growing Australia with an exciting future.
It is one of the main ways in which we can guarantee
Australia's future. It is the way in which we will reduce
taxes and create jobs. It will help us to keep prices down
and free available resources to help those who really need
help. Responsibility here as in most other areas of life is
the best way to achieve what we all want.
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