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FOR MEDIA FRIDAY, 15 JANUARY, J. 982
ADDRESS TO THE NATIONAL YOUNG LIBERAL
CONVENTION, SYDNEY
I am pleased to have the opportunity to address this Young
Liberal Convention, because as members of the only nationwide
Party committed to the well-being of all Australians, Liberals
share a profound responsibility for Australia's future.
I have no doubt that a great future lies ahead for Australia,
a great economic future and a great future as a vibrant,
concerned and diverse society in which there is freedom and
opportunity for all. Australia is now known around the world
as a stable yet exciting country, and I want to dwell for a
momen~ t on the transformation in Australian life which has
occurred over the last 30 years under Liberal Governments
because the early 1950' s are outside the memory of most
Young Liberals.
Australian life as it was when the first Liberal Gov~ ernment came
to office in 1949 would be almost totally unrecognizable to us
today. At that time, cars were the exception rather than the
rule for most families. Fridges were only starting to replace.
Coolgardie safes or ice chests. Washing machines were only
starting to replace coppers. Home heating as we know it was
virtually unknown. Most of Australia's households had no
telephone. There was no tel. evision, cassettes were unheard of,
long playing records were just coming onto the market. At that
time, air travel was a novelty, and the Gold Coast as we know it
simply did not exist.
Since the early fifties our GDP has more than trebled in real
terms, average weekly earnings have more than doubled inreal terms
and to give just one indication of the level of industrial
development which has taken place, power generation is about seven
times what it was in 1954.
Over the same period, the great rail. standardisation programmes
have been carried through, and while people often grumble about the
roads today, the length of sealed roads has mnore than quadrupled,.
to almost quarter of a million kilometres. Despite our small
population we have put a modern communications netw.. ork into a
continent as large as the United States, and with the satellite,
television and other communications will become available to all
Australians. / 2
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over the same 30 year period Australian society itself has
developed enormously, again under successive Liberal Governments
in terms of artistic achievement, of educational opportunity,
and of cultural diversity.
The genesis of many vital Government programmes in education and
the arts is to be found in Liberal initiatives of the 1950' s and
1960' s, such as the Murray Report on Universities, the formation
of the Australian Elizabethan Theatre Trust and the inception of
the Film and Television School. There are five times as many
students at Australian universities today as there were at the
start of the 1950' s, and at that time, despite massive migration
programmes, the idea of multiculturalism had not been thought of.
Again, none of us would find it easy to contemnplate an Australia
without the Australian Opera or Ballet, or without the burgeoning
film industry which is already recognised worldwide. And it is
worth remembering that it was under a Liberal-Government that the
decision was made in 1953 to build up the national collection which
will be housed in the National Gallery in Canberra which will open
this year.
With a population of just over 8 million in 1949, which has now
grown to almost 15 million, we have established a pattern of
achievement which provides a strong foundation for continuing progress
and re-form. Virtuallyali the changeshave occurred over these years.
Changes which have uplifted people's horizons and transformed our
way of life have taken place under Liberal Governments.
These are the great legacy of the Liberal Party to Australia. They
would not have happened without the Liberal Party, and they are
the guarantee that we can provide the hind of government Australia
needs in the future.
I am proud that the present Liberal Government, strongly supported
by the branches and other sections of the Liberal organisation, has
carried on the traditions of progressive Liberalism establ~ ished by
the earlier Liberal Governments. Indeed, I believe that the
Government's record over the last six years equals that of any
comparable period, despite the massive problems which we have had
to deal with.
This Government's achievements have been wide ranging and profound,
not only in terms of economic recovery and social welfare initiatives,
not only in terms of the realisation of multicultural Australia, not
only in terms such as health care and self-management initiativesfor
Aboriginals, not only in terms of an historical and visionary
exercise such as the Review of Commonwealth Functions, but in terms
of progressive legal reforms, including the Commonwealth Ombudsman,
the National Companies and Securities Commission, the Human Rights
Commission, and our freedomr. of information legislation; in terms
of environmental measures, including the protection of the Barrier'
Reef and' progressive declarations of -the Marine Park, the prohibition
of sand mining on Fraser Island and the banning of whaling in
Australian waters; and in terms of employment-and youth affairs,
including the apprenticeship, training and transition schemes, the
recent campaign to encourage more young women to enter apprenticeships,
the establishment of the National Youth Advisory Group, and the
significant start that has been made in appointing young people to
advisory bodies.
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In Looking at the changes and reforms which h * ave taken place under
successive Liberal Governments, we need to be'aware that these things
do not happen by chance, but as a result of the steady and
determined pursuit of Liberal policies. It is important as we look
to the future that we remember the old saying that " progress is not
a law of nature".
Our vision for the future must be built upon our pride in Australia
and its achievements. It must grow out of our determination to
improve the Australian way of life, and it must draw upon those
fundamental Liberal values which are shared by the great majority
of Australians. I want to list some of these values, because they
highlight our profound differences from the sectional, socialist
approach of the Labor Party.
Liberals believe that people are the best judges of their own wants..
The Socialists believe that they know what is good for others.
Liberals believe that the incentives created within a competitive
market economy are essential to prosperity and meeting consumer needs.
The Socialists believe in Government direction. Liberals believeeconomic
freedom is vital to political freedom and democracy. The
Socialists want Government direction and control. Liberals believe
that Governments must work to promote interests of all Australians.
The Socialists, concentrate on the interests of their own supporters
and the pursuit of abstract theories. Liberals believe that all
Australians must accept their responsibilities to each other.
The Socialists want to leave all the problems to a centralised
Government in Canberra. These values are at the heart of our philosophy
and I would like to say something about three-policy areas which
are vital to them: the importance of e ' conomic management in
developing Australia's resources and creating the opportunities arid
living standards people want; the impor Lance of providing adequately
for the disadvantaged, the needy, and the people who need help
to help themselves; and the importance of safeguarding our national
security through sound defence and foreign policies and the promotion
of international peace and prosperity.
In relation to economic management and development, there is no doubt
whatever that our position is the envy of many other countries, because
0 we pioneered and stuck to policy approaches which are increasingly
widely recognised as appropriate in the 1-980' s. Economic recovery is
a long haul, and we are still paying the penalties for Labor's
mismanagement. But our policies, particularly our unremitting fight
against inflation, have borne iripressive fruit in the last two or
three years. Over 400,000 new jobs have been created in the last
three years. In the two years to the last September Quarter, the--
annual income of a person on average weekly earnings increased in
real terms by over $ 700, and in 1980-81, the real disposable incomes
of Australian families increased by almost $ 3 billion after tax.
And when we consider as well as these increases in real incomes we havo
been able to increase spending on welfare by over 30% in real terms.--
since 1975/ 76, we get a clear measure of the benefits of the growth
that has occurred under this Government, and an overwhel~ ming rebuttal
of the talk we hear of deepening poverty, and of Australians being
worse-off. ./ 4
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By establishing confidence in the economic future of Australia,
Liberal policies have also vastly strengthened business investment
in Australia. In 1981, for example, record amounts of over $ A billion
were to be spent on petroleum exploration and development almost
times greater than the comparable figure of $ 145 million in 1975.
There was a 21% real increase overall in business investment in
1980-81, the strongest growth for 30 years, and a further substantial
real increase in investment is expected this year. This is providing
great under * lying strength in the economy. A sure basis is being laid
for long term benefits for all Australians and we must never forget
that there can be no other basis apart from investment for sustained
ificreases in living standards. Nor should we overlook the stark
contrast between Australia's economic p~ erformance and that of our
major trading partners in North America and Europe.
While our economy is growing, their economies have had little or
no growth. While our economy has generated record levels of business
investment, their economies have experienced stagnant or declininginvestment.
Australia's unemployment rate, while still too hih at
6.2% in December, has been significantly below 6% through most of
1981.
We can see how much better we are doing than other countries by putting
this against the most recent rates of over 8% in Candda and the
United States, and over 11% in the United Kingdom, and the OECD
predicts a worsening of al~ l these overseas rates during 1982.
By any standards, the Australian economy has done well, but let
there be no misunderstanding about why it has done well.. Australia
has done well because we have faced the economic challenges of our
times with the right policies. When we think of the situation of
many overseas economies, we must not say to ourselves " it can't happen
here". If wve relaxed our efforts, or if Australia was subjected to
Labor' s misguided economic policies, we too w-ould be suffering the
disaster of substantially higher unemployment rates, stagnant
investment and economic recession. Let me add that round economic
management is not just a matter of getting the right policies in place
and watching them bear fruit: it is a continuing process of facing
new circumstances, anticipating new challenges, and adapting to them.
One of the most significant of the challenges we * currently face is
to keep development and growth going in Australia while the world
economy remains depressed. A clear indication of the impact of poor
world economic conditions is reflected in the state of our balance of
payments. Because of our strong growth of real incomes, and the demandS
created by resource development, our import bill has been rising
significantly, but because of depressed world trade and falling
commodity prices our export earnings have been falling. This has
restricted the cash flow to exporters which is an important source'
of funds for investment in new developments. Inevitably, faced with
poor current earnings and the high cost of borrowing additional funds,
some projects have been deferred or delayed, but most development
projects are going ahead providing a sign of confidence in Australia's
prospects, providing benefits now to the whole economy, and building
strength for the future.
While to the superficia. observer there may appear to be signs
of a weakening of the economy, the reality is not that there is.
weakness in the Australian economy, but rather weakness in be
world economy, and when the world up-turn comes as inevitably
it will we will be well-placed to take * advantage of it.
The Government is aware that people are concerned by talk of weakness
in the balance of payments, or of projected development being
deferred, but there is a quite unnecessary tendency to speak and
think in extremes, and nothing illustrates this better than some
current talk of " boom or gloom". Do people really believe that the
Government has been unaware of changing d* ircumstances, of what is
happening overseas, and of its implications for the balance of
payments and the Australian economy that having restored confidence-,
incentive and profitability in Australia we would not have been
monitoring and anticipating threats to those achievements?
While th e Government cannot totally insulate the Australian economy
from the effects of overseas trends, or make long range predictions
of every twist and turn in events, we canl and have already shaped
our policies in response to the challenges that overseas conditions
pose, as any careful analyst of the Budget papers, or observer of
our exchange rate management, would iblearly see. But the challenges
to our continued growth are not limited to conditions overseas, for
strikes and wage demands'are also posing real threats. It is one of
our objectives that wage earners should share the benefits of economic
growth, and I have alrezid referred to the real increases in wages
that have been occurring. But people are fed. up with the kind of
strikes and unreasonable wage demands Whi4ch have been all too common in
the past year, which have damaged our international competitiveness,
have threatened investment, and have destroyed job prospects for
many young people. There are limits to the impact which Governments
can have through changes in the law, because industrial relations
are relations between people. And Management and unions as well
as Governments have a vital role in the establishment of a better
industrial climate in this country, and such an outcome, with the
objective of dramatically reducing the number of strikes, is
necessary to the continued strength of the Australian economy.
At the Government's next meeting with the ACTU, later this month,
this important objective will be a major item for discussion. The
ACTU is obviously concerned about the well-being of Australians and
Australian families, and as part of the process of securing improved
living standards this country badly needs some rational debate on
the issue of how the benefits of economic growth should be shared..
If the economy grows at 3% a year, and if inflation is to be contained,
then the benefits that are available to be shared are plain to see,
and there are massive limitations to the w.. age increases that can occur.
/ 6
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Obviously the unions, along with the government and the community,
would want some of the benefits to go into, improved wages. Most,
people would want some of the benefits to go into improved
welfare provisions, and I believe that the unions understand
the need for some of the benefits to go into improved profits,
which are essential. to fund the developments on) which future
growth depends. If a rational debate on thes~ e issues can
occur and if as a result there can be a better grasp throughout
the community of what is involved, then we will have an opportunity
to develop greater u ' nity of purpose as a nation in the resolution
of the issues themselves.
A further requirement of continuing strength in the Australian
economy a requirement essential to the control of inflation,
to the maintenance of incentive -and profitability, and to the
growth of real incomes is the sustained restraint of government
spending. our record of holding the annual average real growth of budget
outlays to just over 1% per annum since 1975-76 stands in
stark contrast to real growth rates of spending of over 2% in
the nearly 3% in West Germany, over 4% in the USA, and
about 10% in Japan over the same period -and the real growth
over over 10% p. a. in government spending in Australia in the
Labor years.
As a result both of the restraint on spending we have exercised
and of the renewed confidence and economic activity that our
policies have generated, we have reduced Commonwealth spending
as proportion of GDP by 2 cents in every dollar since 1975/ 76
over a period in whicC 11Most industrialised countries have
seen the Government's share of GDP-continue to grow.
We must not forget that renewed big government and massive budget
deficits would present an enormous threat to the Australian
economy, and neither Must we forget that the big government,
big spending, big taxation party in Australia is the Labor Party.
Mr Hayden was once incautious enough to admit that he is a
" high tax man.". Hie continues to support the introduction of
entirely new kinds of taxes. Hie has expressed his commitment
" to seeing a larger public sector", ' and under its existing
promises alone, Labor would establish over 50 new government bodies
It is simply a myth to suppose that Mr H-ayden knows about
good economic management and we should not forget that his
so-called " restrained" 1975 budget contained a real increase
in budget outlays approaching 6% or that his estimated deficit
of $ 2.8 billion would have run out to an actual deficit of
well over $ 4 billion except for the spending cuts which we
introduced on coming to office, and which still left that
Hayden Budget with a deficit of $ 3.6 billion.
Nor should we forget that by 1983, well over a Million voters
will be too young to remember the disastrous economic mismanagement
under the Labor Government and we share the responsibility
to make sure that the threat which the Labor Party poses to
to Australia's economic well-being does not become a reality.
Liberal Governments emphasise good economic management. because
a prosperous economy is the precondition of so many of our other
objectives and this leads to the question of our ability to provide
adequately for disadvantaged and needy people. / 17
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Thiere are obviously many hard decisions to be made about
priorities in the social welfare area and many difficult
lines to be drawn.
But the Liberal Party's record of effective concern to
provide care and attention for the needy and disadvantaged
is unparalleled in Australia's history, and we all know that
the often-heard claim that Liberals do not care is an absurd
fabrication. The people who make this claim are n ot only
historically wrong they fail to grasp the fundamental
philosophical concern of Liberalism with the individual
well-being of every Australian.
This Liberal concern has received consistent arnd balanced
practical expression over decades through budgetary and
other initiatives and obviously that process will continue
in the years ahead.
1981 saw the initiation of the new health scheme under which
there is provision for free health care for about three
million Australians,, and with the tax rebate for health
insurance, a growing number of people have beeni taking out
health insurance.
As a result of the 50% family allowance increase for third and
subsequent children, more than half a million Australian
families, many of them the most needy, are now better off.
The Government is proud of the progress that has been achieved
across a wide front of social welfare concerns, including a
39% real increase since 1975/ 76 in assistance to disabled and
handicapped persons, and also including -the automatic
indexation of pensions, a Liberal initiative which p.. rovides
essential security to those people, especially women, who
depend on their -pens ions.
Any society which cares about individuals and their well-being
will inevitably face on-going challenges in relation
to social welfare, and one major challenge which lies ahead
for Australia arises from the increasainqily ageing composition
of our population.
Australians are generous in their concern to provide well for
aged and needy people and there is need for on--going discussion
about which needs are the greatest and which priorities are
the highest.
But economic growth is quite obviously the decisive precondition
of our being able to provide the highest desirable
level of social welfare benefits and it is indeed largely
because the Liberal. Party has always recognise * d this simple
truth that Liberal governments have been able to do * so much
to improve social welfare arrangements in Australia.
In considering the prospects and challenges which lie ahead
for Australia as a nation another area which obviously must
concern us is the international environment.
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I believe that the community is increasingly recognising
the value and appropriateness of our defence policy and our
foreign policy which work together as the two arms of our
approach to national security. We have embarked on a longterm
programme to strengthen our defence forces and we have
also strengthened our relations with, our free world partners.
As a middle level power, Australia's role is obviously a
limited one but I believe that as a result of sustained pursuit
of some central attitudes and policies, and as a result of
our willingness to play what part we can, as expressed for
example in'the terms of our decision to participate . in the
Sinai Peacekeeping Force, Australia's reputation has been
enhanced as a country with a capacity to make a contribution
to discussions on issues of world concern.
The kind of reputation we. have been achieving as a concerned
and constructive country does not come easily, but through
the steady, balanced pursuit of sound policies we shall continue
to buiildup that. reputation.
There are obviously many challenges on the world scene extending
beyond issues of stability and world peace, and including the
promotion of human rights and the strengthening of the spirit
of liberty, independence and democracy.
Au~ stralia is actively involved in discussions of such issues
by various world bodies, but one of the most-important
challenges today is that of world poverty, and the need for
dialogue between) the developed and developing countries.
Australia-has put its weight behind moves to revitalise this
dialogue, and to give it the urgency and priority which it
deserves because its significance for the kind of world in
which we and our children will live cannot be exaggerated.
I believe that Australians increas1ingly want this challenge to
be faced; that they want it to receive continuing emphasis as
a matter of government policy and it will certainly continue
to receive priority in terms of the governmentC's concerns.
Like so many of the great challengos in p : olitics, it i~ s not the
kind of issue that can be solved today or tomorrow,; not the kind
of issue which will ever be dealt with in a final. way. But
it is an issue on which every incremeiital gain is worth striving
for and which will call for continuing efforts from all of us.
In this respect, it is like most of the great challenges of
politics. There will always be challenges to meet, both long and short
term, in terms of economic progress, in terms of adequate
care for those in need, in terms of building the kind of
world we want, in terms of pursuing our Liberal ' objectives
of freedom, security and opportunity for all.
Young Liberals have a very real contribution to mak~ e in meeting
the challenges of the future, and it is no accident that the
Young Liberal Movement is strongly represented at the highest
levels of the Liberal Party organisation.
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This representation recognises the value of the Young Liberal
input in discussions of our philosophy and policies. It
recognises the importance of the young Liberal Movement as
a source of strength in Party membership:, and in carrying
the Liberal message to young people especially. And it is
worth noting that the level of Young Liberal representation
at our Federal Council is twelve times higher than the
corresponding level in the Labor Party.
I would like to say how much I have valued the close consultation
I have had with Young Liberals, especially Saul Eslake and
Mark Birrell, throughout 1981, and how much I am looking forward
to a continuation of that close association with your new
Executive. Provided that we work together as one party for
the advancement of Australia, I believe that continuing
success for the Liberal Party and continuing achievement by
Australia are secure. ooo000ooo---