. jjAUSTAL A
FOR MEDIA APRIL 18 1982
ELECTORATE TALK
One of our important responsibilities is to present a balanced,
realistic view of where our economy stands, and of the prospects
which lie ahead. People have a right to expect that the various
elements bearing on Australia's economic position will be
explained in a rational way, so that the whole picture emerges
and can be understood. Balance, stability they are the keys
to keeping Australia's economy on course, not only in the
public presentation of the position but also in the substance
of responsible economic management.
Australia does not function in isolation. When the economies
of the major industrialised nations strike trouble, then that
is reflected in Australia. We are affected by the slackening
demand for our products in those countries. We are affected
by the levels of interest rates in Europe and America. The unhappy
truth is thai: the economy of several of these major countries
is not growing. Not only that, but in some instances, they are
actually producing less.
There are many economic indicators, but I think the plight
of the United States' motor car industry illustrates the
position quite dramatically. Four years ago, the United States
produced 15 million vehicles. Last year, they produced half that
seven and a half million. Imagine the impact of that change
on jobs, peop:. le's spending, the suppliers of metals, and so on.
In the face of a world economic downturn, Australia has done
comparatively well. Our economy has grown faster than the
average rate of other major industrialised countries in
recent years.. Business investment growth in Australia was
at its highest for 30. years in the last financial year.
After-tax real incomes have been rising in Australia and
more jobs have been created. In the three years to last
February, almiost 380,000 new jobs were created in Australia.
We know that we can succeed in Australia against world trends.
We cannot avo~ id being influenced by those trends, but there
is much we can do ourselves to meet the challenge of keeping
Australia's economy on course in the face of difficult international
conditions. For the Government's part, it is committed to
providing stable, reliable government, the kind of government
that inspires confidence among business people, large and small,
in Australia and overseas. That is fundamental. / 2
2
At the same time, the Government must be sufficiently flexible
to respond to changing economic circumstances internationally
and at home. As a nation, it is vitally important that we
recognise ourselves as an integral part of the world market
place in which we must compete to sell our wares. We must be
reliable suppliers of quality goods at the right price. At a
time when the market for so many goods is very tight indeed,
we are jeopardising our competitiveness. Put bluntly, this
is a time for containing costs. This is not a time for
shortening working hours. Nor is it a time for substantial
wage increases when in some other countries people are actually
accepting reduced wages in order to preserve jobs. This is
not a time for talking the economy up or talking it down.
This is a time for sound economic management, for stability
and reliability.
It is a time to recognise our achievements in the face of
a world downturn and to accept the challenge of keeping
Australia competitive in the difficult period ahead.