1, AUS~~ L L.
PRIME MENISTER
FOR MEDIA SATUiRDAY, 7 NOVEMBER 3.981
ADDRESS TO THE SOUTH AUSTRALIAN STATE COUNCIL
I want to talk to you today about the Australia that we know
and love, about our aims for the advancement and development
' of this country, about the kind of lead that Australia needs
and that only the Liberal Party can provide.
I want to'address these themes because I believe that
Australians need a clear perspective of where we are going as
a society, and an equally clear view of th vast difference
between the Liberal vision of the future and the Labor alternative.
We must not overlook or let anyone forget that Labor is the
Party of republican socialism, for socialism and republicanism
were both explicitly espoused by the Labor Party at its
biennial Federal Council Meeting this year. So Labor is the
Party Which would cut us off from our history and our heritage
as well as from our hopes and aspirations because Australians
have alw.. ays abhorred socialism and they will resist socialism
whether Labor tries to introduce it openly or by stealth.
The Liberal appro ach is vastly different for it favours the
way of freedom, it seeks to build up our achievements and make
the most of our history. Liberalism takes the view that people
should have the incentive to succeed in achieving goals which
they set for themselves and which they seek to pursue on their
onw account.
Let me say something first about the fruits of the Liberal
approach in terms of the kind of society we have in Australia,
because it is easy for us to overlook how far we have come in
the last few years, and easy to under-rate the real quality
and significance of the Australian achievement in world terms.
Australia in the 1980' s is one o[ the most \ uibrant and vital
countries in the world in a cultural sense, one of the most
harmonious, free and stable countries in a political sense.
It is one of the best managed and luckiest countries in an
economic sense. It is one of the most concerned and energetic
countries in humanitarian terms, one of the most realistic,
responsible and farsighted countries in the part it plays
in intern at-ional affairs, and it is one of the most self-confident
and friendly countries in term,-of the w-ay in which other
people vie. a us. / 2
2-
These are not just my perceptions of Australia in 1981. They
represent . the considered views, expressed in unambiguous terms,
of visitor after visitor, especially during the rec& bnt Commonwealth
Heads of Government Meeting. I said at the time of that
Meeting that: the world spotlight would b * e turned on Australia
and there can be little doubt that the world was impressed.
And I believe that what impressed people above all was the way
of life that we have built up in this country.
Let me mention some of the comments that our visitors volunteerE~ d
about Australia. * Pierre Trudeau spoke'oh Australia as
" self-possessed and confident about the future believing~
in the future of mankind.".. He also said that " with its
tremendous economic potential, with its exc iting technological
and natural resources, with its intense and vibrant culture,
Australia seems to be very much part of the definition and
formulation of the twentieth century as it's meant to be".
' Robert Mugabe spoke of " the positive and tireless role
Australians have played in world affairs and the outward
policy which Australia has shown consistently, especially towards
the third'world"..
Kenneth Kaunda of Zambia said that before he came to know the
present Australian Government, he " personally did not know
what Australia was, except as a country where there was
indifference to suffering people of the rest Of the world", and
he went on to say that we had brought the countries of the
Comxnonwealth to " an Australia with which we are very proud to
be associated".
Sir Julius Chan spoke warmly of the " fabled Australian
hospitality".
And Sir Dennis Hamilton, a British member of thle Commonwealth
Press Union, said that the thing hie had been struck by, going
round Australia, was " the sense of self-confidence of people
at every possible level, self-confidence in themselves that
they pan tackle any of the immense problems remaining here,
and if more problems come in the world they will help with
those too". And he continued that Australian self-confidence
" is a bit of a refresher and encouragement for some of us who
have come from some of the old countries" 1
Comments like these are representative and typical of. what
people were saying, and there are endless tZrue stories about
the impression that Australian friendliness and kindness made
on our visitors. One Namibian journalist ., as so moved when
a stranger came across to him during dinner and gave him a bottle
of Australian wine that he said h-e would take the wine back
home as a symbolic gift from all Australians to his own people.
Hundreds of the visitors received similar generosity from
friendly Australians, and as a result, hund: reds of people went
back to thcoir own* councries ambassadors f. or Australia. ./ 3
-3
We have known for years that Australia is the best country in
the world arid the superiority of the Australian way of life
is even more obvious when you visit most overseas countries
today. * Neither is there anything new about the friendliness
and generosity of Australians. But in terms of the political
history of the 1970' s there is something very satisfying and
significant about the comments on our self-confidence, our
vitality and ou. vr good management, because in 1975, under the
Labor Government, such perceptions of Australian society would
have been utterly impossible.
And while I am on the subject of the dynamism of Australia
today, I want to lay the ghost of: a view which has had currency
with-some people because it ' is sometimes thought ' that ' the
vitality and vibrancy of Australian society and cultur6 as we'
now know it, which contrasts so sharply with the image of a
less exciting society in earlier decades, might have received
its impetus from the Whitlam Government. in fact, the trendy
cultural blossoming which took place in the early seventies
had turned completely sour by 1975 because we all know what a
sense of hopelessness and despondency had come to grip the
whole of Australia by that year.
.1975 was in fact the only year since 1946 when more people left
Australia than came in and what an indictmarit it is of the effects of
Labor policies that withnin three years of , Labor coming to office,
more people were leaving this country than were entering it.
The vitality which we see in Austral~ ian society and culture today
is vastly different in its nature an~ d its inspiration. It is
maore diverse in its expression, more open to a variety of influe nces,
more alive to all the currents which are flowing through AusCra2. ian
life. There is a related point to make about the quality of
Australian life in the eighties by contrast with the early
seventies because while we live in times of great change, most
Australians now feel more secure and confident than a few years
ago about our basic values of freedom, initiative, diversity and
responsibility. The very real doubts of earlier years, and the
uncertainty which gripped the minds of many people about whether
these'values could be sustained have now largely disappeared.
The Value of diversity is being more widely experienced with
every new expression of the multicultural character of our
society, and more widely welcomed as people recognise that
the apparent dullness of Australian society in earlier times
was largely a product of sameness. While people now have a
far better understanding of the contributioh that a diversity
of lifestyles makes to a free and open society there is also,-.,.
I believe, a deeper appreciation of the basic institutions of
Australian society, especially the falmily and a greater
awareness that these institutions are important to the achievement
of progress as well as stability. / 4
-4
This brings me to the matter of our aims for -the advancement
and development of Australia. In economic terms, Liberal
Governments consistently seek to esta.-blish-the conditions for
expanding employment and increasingT prosperity for the whole
community. Without economic growth, these objectives are
impossible to achieve, and economic growth is fundamentally
dependent on the private sector having the room and the
incentive to expand. Australia has cause to be proud of its
economic achievements in recent years. Nearly 300,000 new
private sector jobs were created in the two years to September.
The unemployment rate throughout this year, on a month by
month basis, has been the lowest for four years. And there is
no doubt whatever that the unempl~ oyment position would be a
great deal better than it is except for the needless'-d6gre~ e of
industrial unrest which has occurred and the absurd wage claims
that are being made.
~ Let me add that I am encouraged by the recent improvement in
the employment position in this state because the turnaround
to a positive increase in employment of over 14,000 in the
year to September puts a far better light on a. situation that
has obviously been a matter of great concern.
I have no doubt that a great deal of the credit for what is now
happening is due to the policies of the present State
Government under the leadership of the Premier, David Tonkin.
It is two years since David Tonkin turned the tables on
Labor in this State. And it is a matter not only for congratulation
but for heartfelt satisfaction that the South Australian
Liberal Government is getting the runs on the board in this
area and that a number of other developments are getting under
way in this State because it often takes years for sound policie-: s
to bear fruit because of the long lead times that are involved.
We would be deluding ourselves in Australia if we thought we
could remain unaffected by the world economic situation, but
we have established an underlying strength in the Australian
economy as evidenced by a number of important indicators.
Inflation is continuing below the OECD average, despite the
greater difficulties which we have in controlling it in a
situation in which our economy is growing while others are
static or even shrinking.
Confidence in the Australian economy is obvious in the widesprea2d
investment in the mining and manufacturing industries that is
now taking place. The latest figures show that retail sales
were up by almost 14% in the year to September and the latestsurvey
indicates that the expectations for private investment
in 1981-82 are 32% higher than at the same time last year.
It is also worth underlining the benefits which the whole
community received from the 4% growth which was achieved last
year in the non--farmsector of the econiomy be--c: ause this crrowth was
translated into a corresponding increase in average weekly earnings
which was reflected, in an aggregate increase in real disposable
household income of $ 2.7 billion after tax. I want to say two
things about this increase. One is that our policies are aimed
precisely at making possible such improvements in thle standards
of living of Australia's families.
I
Let me add to this a general comment about people's attitudes
to Budgets because while the living standards of some people
in the community need to be directly protected through the
BudgetI-, most Australians should be looking to a healthy
economy for real improvements in their living standards.
People should be looking to Budgets as instruments in creating
the conditions in which they will be able to make real
gains through their own activities and as a result of doing things
f or themselves and everyone needs to be aware that Budget
handouts can never match the real gains and increases in living
standards that come from a healthy economy.
The second point to make about last year's $ 2.7 billion increase
in the after-tax real disposable incomes of Australian families
is that increases in incomes must reflect real improvements ini
productivity, therwise they will be ' short-lived and will
undermine the capacity of the economy to grow in the future..
I don't need to say to Liberals that economic success of the
' kind Australia has achieved does not come about by chance.
Good economic management is a discipline which calls for
deliberate and debUhir~ ed policies. And by the same token,
sustained' economic success and prosperity will continue to
depend upon constant attention by the Government to economnic
management. Obviously no Government policy' can be a substitute
for the drive of individual initiative and private enterprise.
But through our sound and responsible economic policy Australia
has been in the forefront in attacking the basic causes of the
economic downturn which plagues so much of the industrialized
world, and our consistent approach has been based on the view
that sustained prosperity requires lower inflation, less
Government spending, less bureaucracy, lower taxes, and a private
sector which can compete efficiently in world markets.
We have stuck to the task with urgency* and purpose
and a landmark in* this year's Budget is the virtual elimination
of the deficit. If we had persist~ ed.: with deficit financing
at the 1975 Hayden Budget rate of almost 5% of GDP this
year's deficit would be almost $ 7.5 billion. We have always
rejected deficit financing because it encourages
expectations that are unreal, it forces our children to pay
for yesterday's Government spending, and with the deficit virtually
eliminated in this year's Budget, we will obviously have an
enhanced potential for tax cuts.
The Government has got rid of the massive Labor deficit partly
by an honest approach to taxation and partly~ by rigorous
restraint on its own spending. We have worked at the problem
from both ends. But expenditure restraint has been the major--
ingredient of our approach to making room for the private sector
growth on which the future prosperity of Australia so fundamentally
depends. In 1975-76, the Commonwealth Government spent over 30. cents of
every dollar that Australia prodluced. in 1981-62, the Com., moneal. Jt]-
Government will bie spend-irw 2 cents less than in 1975-76 of
every dollar produced in Australia. This reduction, which -would
be nearly 3 cents but the extra payday which comes at tw. elve-
6--
year intervals, means that the Government will be spending
billion less* than-i,* f the 1975-76 proportion had, in fact,
continued. If Australia's economy can keep growing, and if at the same
time real growth in Budget outlays can be held down, the
consequences, especially in terms of an enhanced potential
for income tax reductions, and of further reductions in the
cents of each dollar spent by governments, must be obvious to
everyone. The Government's steady progress in reducing
its expenditure requirements has resulted from a resolute and
consistent commitment to the cause of restraint and more limited
Government. In economic management, we need consistency of approach and
at the same time flexibility in the use of policy instruments.
Our aim must be to maintain and build upon Australia's economic
rachievements since the time of federation, while at the same
time increasing our international competitiveness. By achieving..
a proper balance, we can and we will increase prosperity and
at the same time avoid hardship. We have stressed the need
for a strang and growing economy because it is a pre-condition
f or the achievement of so many of our widet aims and objectives,
and fundamental in this wider connection is our determination
to increase the range and availability of opportunities for
all Australian~ s to build for themselves the way of life which
they seek, in a secure and stable environment. / 7
7
Governments have a critical role in this process of increasing
people's opportunities to build their own lives, not only
through maintaining the conditions of freedom and prosperity
for all, not only through creating the opportunities that
people want and need but also through giving practical
. encouragement and assistance to enable people to grasp the
opportunities they have.
Governments must not exaggerate their role in helping people to
build their own lives because it is too easy to diminish the
incentive for people to use their own initiative in building
their own lives. But governments ca'n'give a very significant lead
to the community through their commitment to the promotion of
a way of life that is more than just a matter of dollars and
cents and the kind of leadership that is required to achieve
this while maintaining the stability, the security, and the
prosperity which are essential components of it, can only
be provided by the Liberal Party.
The future of Australia depends fundamentally on leadership from
the Liberal Party because basic liberal values are the values*
of the vast majority of Australians, because our philosophy of
concern and respect for the individual means that we are
dedicated to the well-being of every member and every part
of society, because our understanding of economic issues means
that our party and our party alone will implement. the policies
Australia needs, and. because Liberalism provided the most realistic
view of the motivations of people and the workings of institutions.
The Liberal Party is the only par-ty which will accept the
obligation to govern in the interests of everyone, of every
person and every family throughout Australia, not just the
people who vote for us or give us their support, not just the
people in ideological sympathy with us.
By contrast, Labor can never submerge the inherently sectional
and divisive interests within the Labor Party itself, so no
Labor government will ever accept the discipline of governing
in the interests of all. The Labor leadership always has to
fall in behind those who control the votes in Caucus and in
the party councils, and, as a result of this, the kind of twisting
and turning which has been so evident in Labor's performance
on the Sinai issue is never far below the surface in Labor's
policy making.
I want to look closely at this particular performance because
it is symptomatic of Labor's incapacity o provide leadership
and of its unfitness to government. Both Mr Hayden and Mr Hawke
are united in their ' opposoition to Australian participatiorT-in
the peace force but their reasons are totally different, equally
wrong, and completely unbelievable.
Mr Hayden says that the Begin Government is the greatest threat
to world peace. But how could the Prime Minister of Israel
possibly be the greatest threat to world peace. It is Pussian
guns, and Russian divisions, which represent that, and it. is
the Soviet Union, not Israel, which has continually obstructed
the peace process in the Middle East. So Mr Hayden's position
is an absurdity, although he did at least try to cast it in terms
of globjl politics. / 8
I
8
Mvr Hawke, the great proponent of' Israel, did not seek to do
that. HeI said he came to his view because of the o'pinion
polls, u to suqggc: t that Mr Hawke would be driven aa
from the actions needed to support the cause of peace by mere
opinion polls is to take too little account of what Mr Hawke
is all about. I can, to use his language, irrefutably prove
it was not the opinion polls that made Nir Hawke' s mind up for
him because at the time Mr Hawke seconded and supported the
Caucus motion opposing participation in the peace force on
27 May, no opinion polls had been taken by any of the major
polling organisations not by Morgan, not by McNair-Anderson,
not by not by the Age Poll.
So Mr Hawke still needs to tell us the real reasons for his
opposition to Australian participation. In fact, of course,
we know the reason, because we know the tactics of the Socialist
Left. The Left Wing of the Labor Party has always been adept
at capturing and breaking their opponents by making them actively
support resolutions they know to be wrong.
Mr Hayden and Mr Hawke, in coming by their conflicting routes
and from their conflicting starting points to. their common view
in relation to Australian participation have surely been
influenced by the interests of the Socialist Left, not by
the interests of Australia.
The case is in fact a classic example of a sectional interest
interfering with the formulation of Labor policy, on a national
issue. How can there be any faith, any conisistency.. in the
foreign policy or leadership of Z party one of whose leaders says
he believes that Mr Begin is the greatest threat to world peace,
and another of whom says he believes that it is proper to fo] low-0
the OPinlion polls in formulating policy on an issue where it: is
plainly the responsibility of leadership to make a decision, to
take a stand, and to carry that view to the people -to seek th. ir
support.
The Government has-acted responsibly, it has made the right
decision for Australia, and its decision will be respected because
of-the way it was made, and because i ts objective is the pursui~ t
of peace. We must never forget that Labor can never provide
the kind of firm and responsible leadership which Liberals rightly
believe in and which the people of Australia rightly require
of their government.
The importance and difficulty of the tasks ahead of us must not
be under-estimated. We live in uncertaini times, not only in
terms of world peace and stability, but also in terms of maintaining
-impetus and progress in Australia itself. But we are on the
right track we shall not stray from that track arnd on that
basis we can be optimistic about the future. Let ine just
say in conclusion that I am delighted to have this opportunity to
be at this State Council meeting and I look f orward to hearing
some of your discussions on the motions before thig meeting anci
to meeting a lot of Liberals through the daiy and at. the dinnerthis
eveningj. 000---