PRIME MINISTER
FOR~ MEDIA TUESrAY FEBRUJARY 8 198-3
BUSINESSMEN ' S BREAXFASTp BRISBAN~ E
When this breakfast was first organised, I think we all
thought this was going to be a normal, quiet cabinet meeting
a little later today. I am meeting some people from Brisbane
this morning and at lunch and again this evening, but since
then events seer' to have changed a little bit. i don't really
think we would have all these photographers and journalists
with us in those other circumstances.
We have a very serious job ahead of us, and it is well worth
recalling that up until the time in which the world recession
really hit Australia hard, this country was growing well.
Many tens upon tens of thousands of additional jobs had
been created. Our inflation rate was in good standing compared
to the rest of the world, but then of course, certain t. hings
happened. There iS the world recession which has rione on
much longer than anyone thought, and a bit harder than anyone
thought it would. As one of the great trading nations of the
world, it obviously had-to have its impact on us.
The drought which is affecting most of NSNW dnd most of my
owrn State, and abo~ ut 60 or / 0 pt! rc ent of this State is
obviously having a great impact over Australia. It can
yet end up being the worst drought in the recorded history
of the country. Already there are 100,000 farms, lCO milliin
sheep, 14 to 18 million cattle directly affected. We have
taken policies, many in support of the State governments
under the core mneasures for drought relief, btit othl~ er policies
because we believe it was be',' ond the financial capacity of the
States which are de signed to preserve people ont their farmts
and properties and to preserve Australia's essential breeding
stock. Those policies I believe are affective.
The drought is obviously something we need to monitor in the
months and period ahead of us because its severity and the
potpential damage just depends upo-, n when the rainis actually
come. As each month goes by, the whole situation bDecomes
more serious.
Then of course, Australia was also hit by wagje 2ciisions.
over the last couple of yeai s which have bcenn enurmously
damaging. Wage. decisions whichn led to increase-T of 15 to
percnnt mny wges toether with shorter hIours at a time
when our competitors over'^ 3ezk weree: p iec. Ywacaju mr;
of 5 or-6 percent._ So our indu. st rires bcc--an LO bcm n n) t. L
and in onie set of 1r( utries al( no, in " he' mctal tradetu,
unemployment increcisd by 13,000. A sic. nificarit 1-arL of the--
I
unemployment was the inevitable result of the wages pressure
that had been put in place, the inevitable result of the
wages policy that was in place in the ACTU in 1979 when
Mr Hawke was president of the ACTU because it was that policy
which gave the impetus to the union pressure over the last
2 to 3 years.
Now many people arg reaping the whirlwind and many Australians,
many young Australians, are finding it difficult or impossible
togt jobs as a consequence. Against this total background,
it would of course be possible for a government in Australia
to say it is the world recession, it is the drought and we
will have to wait until these things pass. But that hasn't
for one moment been the attitude of my government. We have
put many policies in place, designed to assist Australians
in difficulty designed to help build up the basic strength
of this country at a period of difficulty, and we are not
waiting for other people. We are not waiting for recovery
in the United States before we take action to improve things
in this country.
Through the last year we acted on many fronts. We made
decisions which put $ 1.2 billion into the home building
or home purchasing industry, and no-. that interest rates
are starting to come down, that is having an impact. I have
heard in Melbourne, in Sydney and yesterday here, that there
is much more activity in the home market than there has been
for a very, very long while indeed. It was inevitable that
once interest rates broke that many people would take
advantage of the policies we have put in place. I can understand
why they wouldn't do it until that happened because even if
they could pay the mortgage off today, if they were concerned
that rates might go up, they wouldn't know about next month
or next year. But once the worst of the interests were through,
then it is clear that people would be able to buy or build
much greater confidence.
Now, that was only one of the fronts on which we moved.
We also acted to assist industry through much improved
depreciation schedules, but again, that is a longish term
measure, not one that can be expected to attract much
immediate investment. But when our own industries do feel
the confidence . to reinvest, to buy modern equipment, to put
in place new technology, those new depreciation schedules
are going to make it very much easier to do than would otherwise
have been the case.
In the last budget, we took many decisions designed to
help the disadvantaged people in our own co: mr. unity, designed
to help Australian families, and designed to help young puople.
Many typical Australian families would be $ 17 or $ 19 better
off as aresult of a combination of tax measures, improvements
in family allowances and housing measures that were the
result of the last budget. There are many elderly people,
many disadvantage people who are much better off as a result
of the last budget. I know quite well that it is common to
tag that particular bud. giet as an electLion budget becauce it
had some good things in it. If it hadn't thoe sort of thing
in it, I ar quite sure it wouldn't have been regarded as an
election budget, rather that commentators would have said that / 3
-js 8 J
this is a government that doesn't deserve. to Lie in governmenit
because it is not sh; wing concern for the needs of Autralian
families and of Aiistralians at a time of recession and difficulty.
It was a sensibl. e budget, it was well attuned to the circumrstanres
of the time and the measures that we took especially to help
Australian fa-milies are having an benleficial impact.
I don't know t'lidely it is und erstood but the tax cuts
through this year have a total value of $ 1.5 billion and in
a full year, about $ 2.5 billion. So, the measures of the
budget were substantial indeed.
Now, a number of the policies in that were a direct result
of consultations we had with the ACTLJ, with the Confederation
of Australian Industry, and of consultations Ian Macphee
and John Howard had airectly with the ACTLIJ, because we
were concerned to establish the circumstances in which
it would be realistic to ask for arid to require wage restraint.
We believe that we d1id just that. But it became clear as last
year drew to a close that something further was needed to
re-establish a competitivc base for Alustralian industry arid to
get a realistic relationship between wage-s and profits because
wages had gone up so much and profits had fallen, to the locst
level for about 20 years. Against that background, people
just can't employ Australians.
Therefore, the idea of the wages pause came into being.
But it was a wage pause with a difference it had a very
real streak of idealism in it. It was a wage pause that says
the money that would be going otherwise to the Commnonwealth
public servants in hig-her wages will be used directly to
help other Australians. So $ 300 million has been put out
for welfare housing, directly to assist through the progranmnes
of the States, unempl. oyed young Australians, and older people
have been retrenched as a result of the recession.
The people who would have otherwise been getting the wage
increase can see their dollars at work in a sensible way
and in the best tCradition of Australian mateship. I think that
makes it easier to point out to people iA* n private industry
look; the wage pause is important. It will hielp you to keep
your job. It will help keep your industry in. business. It will
help to sell ~ ust. ralian goods, and as time passes, it will
help and enable businesses to employ more Australians.
In this election, we can say very -validly as a result of
our policy of tChe wage pauzse, to all employees, vote for this
governmont and you -are votling for your own job. Vote ffor the
Labor Party and yo,-, i are voting to be unentployed! becaus
allknow that the Labor Party is committed to hIgher wac--, Fs.
Their policy cor-iits them to full cost of living adjustmen
and we all know that on the basis of past history, that would
be extraordinarily 6anacjing for Australian firms. We all
know that tlie present pause an,' all. that business is a t( 3t1al
sham for a four week period of the election.
The nil indu., stry union were set. upon breaking the wage P, u se
and the Lab-or Party, LinlBo%,: en, said ' of course you ha~ ve g-. D
to expect them to go,-On strike we -: 11e SUpporting the strikel
lie madle it nerfoc't~ ly p1 amn that he b-el ieveS they ~ crc juiti1fle-3
i. b Q, 4 I -J
Businessmen's breakfast, Dris
in fact inciting the shutdown of Australian industry.
The Government believed that it could not allow that to
happen. Now they have said that the wage pause can continue until
there is a conference. But when is the conference? One day,
one week, ten days after an election? That of course is a sham,
fabrication and something that is totally meaningless.
The Labor Party is committed to that oil industry 8%.
That would start a new wage round and we would be back
on the same old merry-go-round once again. We need to
understand that very clearly.
We are doing other things which are building this country
for the future. The great bicentennial road development
programme is not only going to assist transport right
throughout the major networks of Australia, it is also
going to improve transport in capital cities and it will
make a major change in the transport system of this country
between now and the bicentennial year of 1988. Later this
morning with Ralph Hunt I will be visiting a project which
will be a very significant urban electrification of Brisbane
city transport. A major part of that project funded by that
programme. That again indicates our detormination to build
for the future.
The water resources programme which I announced with John
Carrick several days ago is one which is very necessary
in the present dry and sparse circumstances. This is one
of the driest continents in the world but I believe we have
now taken decisions which are doing to do a great deal to
shoreup Australia's reserves for the future. We are also
going to make sure we get the best possible examination
of the age old dream of turning Australia's coastal rivers
inland for better use of our scarcest resource. This again
is building for the future.
Again, these are things in the present circumstance, the
Australian. Government needs to do. I don't say it is the
end of the track in relation to that because there will
be a policy speech next week and that speech will be looking
very much to the future, very much to building Australia,
very much to the confidence we must have in ourselves and
in our capacity to do things in a difficult world.
Now, this is a record of achieverment, but it is also a
record of putting in place policies designed to grapple
with some of the most difficult economic circumstances that
any country has ever faced. I believed that that is being
done effectively. That needs judging against the policies
of the Australian Labor Party if they have got any policies.
I asked a couple of dozen of the more intelligent members of
our community in Melbourne over the last three or four days
I have reversed the process. When being questioned by
journalists, I asked them all a question. I asked if any of
them could name a single policy of the Australian Labor Party
that they have in place, that is relevant to Australia's
economic problems in 1983. I got from one who is a good
friend of mine a goodi political answer, but it wasn't an answer.
I g: t from another that they arc going to have a conference. but'. I
4 8/ 2/ 83
tU/ 0 j
a confer*-nlce is not a poli. c-y, iior is it a substitue for a pl'y
We have coieei:-all the time with a great variety of
people, but we don't erect them into a policy on which you can
go to an election and seek people's support. That is nornsense.
As to the rest, they couldn't think of a thing. That says
great deal about the Australian Labor Party.
We have had somie c~ nfusions ini recett times. Mr Kiawke, in the
middle of last ytear was maKing lit plain that he didn't think
much of Labor advocacy if they couldn't persuade people to
adopt a capital gcins tax. But over the last periJod, he
seems to have sail a few things that I would, have thought
are grossly offe~ nsive Lo the Chief Commissioner of Taxation
because the implication is that he is riot applying the law
adequately. I would have thought that most people believe he
is too vigorous in applying taxation law,; and there are many
people who wished he wouldn't. But he has now had at latter
day conversion and sucjgestCed that the Party is not committed
to a capital gains tax. lie says somehow or other he is going
to apply suich a tax through the existing law, in somne way
as yet not defined. Well, it is legitimate to ask ourselves
which Mr Paw.-ke ., Le believe.
Then we are told there is going to be agreement about a
prices incomes policy. This is going to be a fascinat'ing
piece of wrapping paper when it ultinm1ate1ly does emerge,
if it does emerge, because there was an attempt to have it
brought to the light in the last winter. There was no
agreement. There was a postponement. It was going to come
out before Christmas. There was no agreement. There was a
postponement. It was going to come out in the end of January,
early F'ebfuary, and it was postponed again. All along
Mr Hawke was of course chief negotiator as Industrial
Relations spo~ esman. Now I suppose somet -hing will be provided
for electoral purposes.
But over the last couple of days Mr Dolan has been sayin-g
there has got to be an excess profits tax. It is no good
saying it doesn't matter an excess profits tax being put
in ! place because there are aren't any excess profits at the
moment. But if it is there, it wo.-uld obviously be v'ery damaq.-inq
on business, investment, the pZrospocts of attractingj capital
from overseas and the prospe-cts of having Atustritlian therselves
chance their-arm in somne of the high risk propositions which
are so important to the future development and strength of this
country. But Mr Haw'Y. e says now is, not. the right time for it.
Hie doesn't say wher, it will be, but it is interesting to
note 1 think the argumient.
The Labor Party ay-e qqlinq to this eloction on a slogan of
brincjing At i icocl in. I would like to make
the point atc ntroncgly a~ s I can that T believe that that if;
sheer and utter h-umrbug. If thoy were interested in bringing
Australia Locqethcr, if they w,. rre inteorested in reconcili'a-tion,
they would not be pursuirng the policies that they are usig
because their iolicies across a broad range are -totally and
utterly 1h'ie~-ica re -bsrcr rte ~ at caid~ ctu her i
for Inany Austral Iian families.
Busin' srnlen's Breakfast, Bris 828
Let tne take one or-two examiples: We have got the wage pause
in place. Douig Anthony and John Howard achieved a remarkable
rest1t. when they c; ot the agreement of seven governments.
It is hard enouch sometinies for the Coimmonwalth to agree
with one State go%! ernment, ) b-ut to get the agreement of all
eight Liberal, r.': lional Party, and three Labor State
governments. N~ ow, there was a total, national political
consensus for t-hat wage pause with the exception of the
Federal Labor Party, with the exception of the policy in the
charge of Mr 11awke. Mhere is the reconciliatiqtn in that?
If you are really concerned with reconciliation, against
that backgroundc, even if you didn't believe in the policy
of a wage pause, there would be a commitment on you to
support it because. all gjovernments had supported it.
This miserable opposition seeks to break and frustrate
it and incite the oil industry to bring this country to
its knees.
Now, that in itself makes a mocke-, ry of the slogan that they
are trying to go to the people on. But we need to look at
some othar policies.
In education, there has been a long standing consensus in
Australia, a long standing agreement that all children
have a right to expec-t Somi'e governm:' ent support for the
education of their children. Nov! the Labor Party would break
that and says, so-' e kids will get no support at all. Again,
a divisive policy.
On ANZUS, the Victorian government has taken a divisive
attitude trying to prevent allied ships;, American ships
going into ports. 1believe with a Federal Labor government,
you would find the V,. ictorian government, dominated by the
Socialist left, would win its way and that would make
it very difficult, if not impossible for the AN7US treaty
to continue.
But then you can look at other things in the tax forum
that have been put there in the last year or two. If
they are concerned w-ith rteconciliation, if th * ey are
concerned with bri-nging this country together, why
have they put intc their-platform inthe last couple of years
the determination to form Australia into a republic? If ever
there was a divisi ve issuo to brew a brawl around this country,
that would be one. The sheer humb. ug of the Party whci a'.
election times3 they put an Australian flag behind tCheir
srokesran on ca;-iyiaicn mt-etings and then their spokesman
says it i. q the wretched limp wrap that ought to be torn
up and somethin~ g else pu-, t in its place. A firm commitment.
to destroy and get rid of the Australian flag in theirplatfor-
m.
I make these points, an' they cire rele:-vant in this campaign
because for a party? to be say-ing it is a party of reconciliation
of bringing tnstaliatcethor it is the party of the most
bitter divi sion tha-this3 country 1, as ever see-n.. Their policie6
and the waac p-, ise the I int) c pl., tform and othfe. r
policies denionstr---Iet b e1~ eve, very cleati. y indeoed.
6 8/ 2/ 83
There are going to be some odd polls over the next two or
three weeks. I have also got no doubt that whcni, the time
comes, the people of Australia are going to vote for
substance, they are going to vote for a team that is
working together, and they are going to vote, not just
for the achievement of what this government has done,
but for the policies we have in place for the policies
that will be announced to take this country up and forward
out of recession to build the kind of country that we all
want to see.