J. AUST AAI1 . I. A
PRIME 1/ I NISTER.
SPEECH BY THE PRI E rI'USTER, THE HON, R. J. HAWKE, f. P.
TO THE BRISBANE CHAfNBER OF COMIERCE
8 AUGUST 1983
EMBARGOED AGAJNST DELIVERI CHECK_ GAINST DEIVERY
THE TIMING OF THIS OCCASION MY FIRST VISIT TO
QUEENSLAND SINCE THE ELECTION IS BOTH FORTUNATE AND FORTUITOUS.
FORTUITOUS BECAUSE NOTHING IN THE SCHEDULING OF THIS
VISIT HAD ANYTHING TO DO WITH THE INTERESTING POLITICAL EVENTS
WHICH ARE NOW TAKING PLACE IN QUEENSLAND AND WHICH OBVIOUSLYj
ONE WAY OR ANOTHER, MUST HAVE CONSIDERABLE SIGNIFICANCE FOR THE
FUTURE OF BOTH QUEENSLAND AND AUSTRALIA. AND BEYOND THAT,
I WISH TO MAKE NO COMMENT WHATSOEVER.
BUT FORTUNATE BECAUSE THERE IS NO BETTER PLACE THAN
BRISBANE, AND NO MORE RELEVANT FORUM THAN THIS CHAMBER OF
COMMERCE, FOR ME TO HAVE THE OPPORTUNITY TO GIVE THE GENERAL
BACKGROUND TO THE MOST IMPORTANT EVENT OF THIS YEAR, APART FROM
THE 5 MARCH ELECTION ITSELF.
AND OF COURSE, I MEAN, BY THAT, THE BACKGROUND TO
THE 1983 BUDGET, I SAY " IEBAKGROUr" ADVISEDLY AND WITH PRECISION.
./ 2
-2-
THAT, OF COURSE, IS AS FAR AS i CAN GO
TO GIVE YOU, AS REPRESENTATIVES OF THE QUEENSLAND AND
AUSTRALIAN BUSINESS COMMUNITY THE BACKGROUND AGAUINST WHICH
WE, AS A GOVERNMENT, HAVE MAD) E THE DECISIONS WHICH WILL BE
ANNOUNCED BY THE TREASURER,.& P KEATING, ON THE 23RD AUGUST.
AND ABOVF ALL I WISH TO CONVEY A MESSAGE, NOT JUST
ABOUT THE BUDGET ITSELF, BUT ABOUT THE PROSPECTS FOR THE
AUSTRALIAN ECONOMY UPON WHICH OUR FIRST BUDGET WILL BE
BASED. AND THAT BASIC MESSAGE WITH ALL THE NECESSARY
QUALIFICATIONS AND RESERVATIONS, THE REASONS FOR WNHICHI
SHALL MAKE QUITE CLEAR IN THE COURSE OF THIS ADDRESS THAT
BASIC MESSAGE IS ONE OF FIRMLY-BASED CONFIDENCE,
LET ME FIRST MAKE SOME GENERAL OBSERVATIONS ABOUT
THE AUSTRALIAN ECONOMY, WITH A FEW PARTICULAR REFERENCES TO
QUEENSLAND. IT SEEMS THAT Ali IMPROVED SALES OUTLOOK IS LEADING
TO REVERSAL OF THE DE-STOCKING THAT EXACERBATED LAST YEAR'S
DECLINE, THE RAINS HAVE SET THE SCENE FOR A YEAR OF STRONG
FARM GROWTH, ALTHOUGH NATURE HAS REMINDED US OF OUR OWN
VULNERABILITY IN THE AUSTRALIAN BUSH BY REPLACING DROUGHT
WITH FLOOD IN PARTS OF OUEENSLAND.
IMPROVED WORLD DEMAND CONDITIONS HAVE INCREASED
PROFITABILITY IN SOME OF OUR MINERALS AND RURAL INDUSTRIES
NOTABLY NON-FERROUS METALS AND SUGAR AMONGST INDUSTRIES
IMPORTANT TO QUEENSLAND,
SOME PROPOSALS FOR LARGE RESOURCE INVESTMENTS ARE
BEING DUSTED AND TAKEN BACK INTO THE BOARDROOMS,
THERE ARE SIGNS OF RETURNING CONSUMER CONFIDENCE.
PRODUCTION AND EMPLOYMENT IN MOST INDUSTRIES HAVE PULLED OUT
OF THE FREE FALL THAT CHARACTERISED THE YEAR BEFORE MY
GOVERNMENT TOOK OFFICE. A FEW KEY INDUSTRIES, INCLUDING
HOUSING AND STEEL, ARE OPERATING AT HIGHER LEVELS.
UNDERPINNING THIS RETURN OF CONFIDENCE HAS BEEN
OUR EXPANSIONARY FISCAL POLICIES, AND A RE-DISCOVERY THAT
AUSTRALIANS ARE CAPABLE OF WORKING TOGETHER FOR COMMON PURPOSES,
IT IS NOT YET A STRONG RECOVERY. AT THIS STAGE WE
PREFER TO CALL IT A LIFT IN ACTIVITY, THE IMPROVEMENT IN
ACTIVITY IS UNEVEN, AS IT IS IN THE LEAD-UP TO ALL RECOVERIES,
SOME TYPES OF ACTIVITY REMAIN DEPRESSED. PRIVATE
FIXED INVESTMENT OUTSIDE HOUSING WILL FALL FURTHER BEFORE IT
STRENGTHENS AWAITING, AS IT MUST, THE REALITY OF
INCREASED DEMAND AT HOME AND ABROAD. / 4
*, jJ
THE SIGNS OF IMPROVEMENT ARE NOT UNIFORM ACROSS
AUSTRALIA. QUEENSLAND BUSINESS LEADERS WILL HAVE NOTED THE
WEAKER GROWTH, RELATIVE TO AUSTRALIA AS A WHOLE, OF SOME
QUEENSLAND DEMAND INDICATORS IN THE MOST RECENT MONTHS,
INCLUDING MOTOR VEHICLE REGISTRATIONS AND RETAIL SALES.
QUEENSLAND DWELLING APPROVALS AND HOUSING LOANS RECENTLY
HAVE NOT LOOKED SO STRONG.
IT IS INCONCEIVABLE THAT NATIONAL ECONOMIC RECOVERY
COULD OCCUR WITHOUT STRONG GROWTH IN QUEENSLAND, WITH
ONE-SIXTH OF THE AUSTRALIAN PEOPLE AND MUCH MORE THAN
ONE-SIXTH OF AUSTRALIA'S VALUABLE NATURAL RESOURCES AND
POTENTIAL FOR GROWTH. SO WE MUST ALL WORK TO ENSURE THAT
THIS GREAT STATE PARTICIPATES FULLY IN THE AUSTRALIAN
ECONOMIC RESURGENCE, ALTHOUGH THE LIFT IN ACTIVITY IS UNEVEN, AND
ALTHOUGH IT IS NOT YET STRONG, THERE SEEMS LITTLE DOUBT THAT
OUTPUT THIS FINANCIAL YEAR WILL BE SUBSTANTIALLY HIGHER
THAN LAST YEAR, CLEARLY THE MAIN TASK OF ECONOMIC MANAGEMENT IS
NOW TO WIDEN, STRENGTHEN AND SUSTAIN THE RECOVERY, WHILE
KEEPING INFLATION ON A DOWNWARD PATH.
-4-
LANDMARKJILLQdP1Q1ic POi iC'Y
IT IS NOW JUST FIVE MONTHS SINCE THE PEOPLE OF
AUSTRALIA ELECTED A NEw GOVERNMENT TO REVERSE THE DECLINING
FORTUNES OF THE AUSTRALIAN ECONOMY,
IN TWO WEEKS TIME, THE TREASURER, PAUL KEATING,
WILL ANNOUNCE MY GOVERNMENT'S FIRST BUDGET.
THE FIVE AND A HALF MONTHS BETWEEN THE ELECTION A1ND
THE BUDGET COULD NOT HAVE BEEN MORE ACTIVE AND PRODUCTIVE
IN ECONOMIC POLICY-MAKING. THAT SHORT PERIOD HAS SEEN
SUCCESSIVELY THE NATIONAL ECONOMIC SUMMIT CONFERENCE, THE
MAY ECONOMI. C STATEMENT, AND THE FIRST PREMIERS' CONFERENCE
SINCE WORLD WAR 11 TO PRODUCE AN AGREED COMMUNIQUE ON
THE MANAGEMENT OF THE NATIONAL ECONOMY,
OUR FIRST BUDGET WILL BE THE CULMINATION OF MUCH
OF OUR WORK ON ECONOMIC POLICY SINCE MARCH. IT MUST BE READ
TOGETHER WITH THE RESULTS OF THE SUMMIT, THE PREMIERS'
CONFERENCE, AND MOST IMPORTANTLY THE MlAY STATEMENT.
THESE FOUR IMPORTANT EVENTS IN ECONOMIC POLICY,
CULMINATING IN THE BUDGET, ESTABLISH A BASE FROM WHICH
NATIONAL ECONOMIC RECOVERY CAN BE LAUNCHED.
WE HAVE HAD TO' ASK THE AUSTRALIAN PEOPLE-TO ACCEPT
SOME FIRM MEASURES IN THE MAY STATEMENT AND SOON IN THE BUDGET.
WE BELIEVE THAT THE OVERALL EFFECT OF OUR MEASURES IS TO PLACE
THE MAIN BURDEN ON PEOPLE WHO ARE IN A RELATIV/ ELY GOOD
POSITION TO BEAR IT. .1
-6-
IT HAS NOT BEEN EASY, 1 AND I AM NOT ABLE TO PROMISE
THAT THE BUDGET MARKS THE END OF THE HARD CHOICES AND HARD
DECISIONS, BUT THERE IS NO EASY WAY TO REMOVE DISTORTIONS OF
THE KIND THAT HAVE DRAGGED DOWN AUSTRALIAN SOCIETY AND THE
AUSTRALIAN ECONOMY OVER THE PAST FEW YEARS$
As I SAID IN OPENING THE ELECTION CAMPA[ GN ON
16 FEBRUARY: " WE OFFER NO MIRACLES. WE OFFER NO OVERNIGHT SOLUTI ONS
FOR THE IMMEDIATE PROBLEMS WE FACE OR DEEP-SEATED
PROBLEMS WE MUST FACE TOGETHER.
WHAT WE HAVE TO DO IS BREAK OUT OF THE VICIOUS CIRCLE
OF CONFRONTATION.,. j
THAT WILL INVOLVE SIGNIFICANT NEW EXPENDITURE1..
IT WILL ALSO INVOLVE PUTTING IN PLACE MECHANISMS TO
ENSURE THAT THE NEW GROWTH DOES NOT DISAPPEAR IN A
NEW ROUND OF INFLATION THAT IS WHAT OUR PRICES AND
INCOMES POLICY IS ALL ABOUT",
ISAID THEN THAT THE WHOLE THRUST OF OUR POLICY WAS
TO ATTACK THE TWIN EVILS OF UNEMPLOYMENT AND INFLATION TOGETHER.
THAT WAS OUR FUNDAMENTAL COMMITMENT. WE HAVE COME2
A LONG WAY,, EVEN IF THERE IS STILL A LONG WAY TO GO. 11117
-7-
TONIGHT I WANT TO TAKE YOU BACK OVER SOME OF THE
POLIC-Y THEMES OF THE SUMMIT, THE MAY STATEMENT AND THE
PREMIERS' CONFERENCE, AND TO FORESHADOW SOME BROAD OUTLINES
OF THE COMING BUDGET, I. WILL THEN CONCLUDE WITH A FEW
OBSERVATIONS ON POLICY ISSUES THAT ARE CRUCIAL TO THE
LONG-TERM IMPROVEMENT OF AUSTRALIAN LIVING STANDARDS,
BEYOND THE RECOVERY THAT IS NOW IN PROSPECT.
FISCAL PolICY-L THIS-YEAR'IS BQDGET
THE 1983-84 BUDGET, EMBODYING THE DECISIONS ANNOUNCED
IN THE MAY STATEMENT AND THE PREMIER'S CONFERENCE, HAS BEEN
EXTREMELY DIFFICULT TO PREPARE.
WE CAME TO OFFICE COMMITTED TO EXPANSIONARY POLICIES
TO ASSIST IN PROMOTING NATIONAL ECONOMIC RECOVERY, DURING THE
ELECTION CAMPAIGN WE OUTLINED A NUMBER OF NEW PROGRAMS THAT
WERE TO PLAY A MAJOR PART IN RECOVERY, INCLUDING A COMMUNITY
EMPLOYMENT PROGRAM AND A PACKAGE TO STIMULATE THE HOUSING
INDUSTRY. THE PREVIOUS GOVERNMENT AT THAT TIME WAS TELLING
THE AUSTRAL. IAN PEOPLE THAT IT WAS HEADING TOWARDS A BUDGET
DEFICIT OF ABOUT SIX B~ ILLION DOLLARS IN 1983-8' 4. WE JUDGED
THAT OUR PROGRAMS WOULD HAVE ADDED ABOUT ONE AND A HALF BILLION
DOLLARS TO OUR PREDECESSORS'I ANTICIPATED DEFICIT. AT THE
TIME OF THE ELECTION, AN OVERALL DEFICIT OF ABOUT SEVEN AND
A HALF BILLION DOLLARS SEEMED TO US TO PROVIDE AN
APPROPRIATE LEVEL OF STIMULATION) WHILE AVOIDING EXCESSIVE
STRAIN ON FINANCIAL MARKETS.
-6-
THE WHOLE ENVIRONMENT OF FISCAL POLICY-MAKING
CHANGED DRAMATICALLY THE DAY AFTER WE TOOK OFFICE WHEN THE
TRUTH CAME OUT, WE WERE ADVISED THAT THE CONTINUATION OF
POLICIES IN PLACE AT THAT TIME WOULD GENERATE A 1983-84 DEFICIT
OF ABOUT $ 9,6 BILLION.
A $ 1.5 BILLION ADDITION TO A $ 9.6 BILLION DEFICIT
IS OBVIOUSLY VERY DIFFERENT TO A $ 1.5 BILLION ADDITION TO A
$ 6 BILLION DEFICIT, I SAY THE DIFFERENCE IS OBVIOUS THOUGH
IT IS SURPRISING HOW DIFFICULT IT CAN SOMETIMES BE TO GET THE
OBVIOUS ACCEPTED, A LARGER BUDGET DEFICIT CAN, WITHIN WIDE LIMITS,
PROVIDE SOME IMMEDIATE POSITIVE STIMULATION TO ECONOMIC
ACTIVITY, HOWEVER, WITHIN THE NON-INFLATIONARY MONETARY POLICIES
TO WHICH THIS GOVERNMENT IS COMMITTED, BEYOND SOME POINT
THIS WILL EXERT PRESSURES TOWARDS INCREASES IN INTEREST RATES.
IF THESE PRESSURES ARE EFFECTIVE, THEY WILL TEND TO REDUCE
HOUSING AND OTHER INVESTMENT THAT IS SENSITIVE TO INTEREST
RATES. WITH THE INFORMATION AVAILABLE TO IT IN OFFICE, MY
GOVERNMENT FORMED THE VIEW THAT A DEFICIT AROUND $ 8.5 BILLION
WOULD PROVIDE SUBSTANTIAL DIRECT STIMULUS TO ECONOMIC ACTIVITY,
WHILE AVOIDING EXCESSIVE PRESSURES ON FINANCIAL MARKETS.
WE TESTED THIS VIEW BEYOND THE CIRCLES OF OUR
OFFICIAL ADVISERS, INCLUDING AT THE SUMMIT AND, LATER, THE
PREMIERS' CONFERENCE, ,/ 9
-9-
ESTIMATES OF THE PROSPECTIVE BUDGET DEFICIT ON
UNCHANGED POLICIES HAVE VARIED THROUGH THE YEAR IN THE LIGHT
OF NEW INFORMATION, FOR EXAMPLE ABOUT PRICES AT HOME AND
ABROAD, OR ABOUT RATES OF ECONOMIC GROWTH, SOME CHANGES
HAVE INCREASED WHILE OTHERS HAVE REDUCED THE PROSPECTIVE DEFICIT
ON UNCHANGED POLICIES.
A BETTER OUTLOOK FOR ECONOMIC GROWTH IN 1983-84,
ITSELF PARTLYATTRIBUTABLE TO GREATER CONFIDENCE IN THE ECONOMY
UNDER THE POLICIES OF MY GOVERNMENT, LOWERED THE PROSPECTIVE
DEFICIT SOMEWHAT, IN THE OTHER DIRECTION, AND ALMOST AS LARGE,
REVISED ESTIMATES OF THE COSTS OF FRASER PROGRAMS IN 1983-84
ADDED SUBSTANTIALLY TO THE PROSPECTIVE DEFICIT,
THE MOST RECENT OFFICIAL FIGURING AVAILABLE TO ME SUGGESTS
THAT THE NET EFFECT OF THESE OPPOSING TENDENCIES WAS AT BEST
SLIGHTLY TO REDUCE THE PROSPECTIVE DEFICIT, LEAVING US SEEKING
NET REDUCTIONS IN THE ORDER OF A BILLION DOLLARS THROUGH
DISCRETIONARY CHANGES TO REVENUES OR OUTLAYS.
SOME DEVELOPMENTS SINCE MARCH HAVE MADE THIS DIFFICULT
TASK EVEN HARDER, THE DEFEAT OF OUR TAX RECOUPMENT LEGISLATION
IN THE SENATE WAS A BIG SETBACK.
AT THE PREMIERS' CONFERENCE, WE PROVIDED A ONCE-OFF GRANT
TO ALL STATES, ABOVE LEVELS INDICATED IN THE THREE-YEAR FORMULA
AND WRITTEN INTO THE FORWARD ESTIMATES, WE ALSO RAISED LOAN COUNCIL
BORROWINGS THROUGH THE COMMONWEALTH BUDGET ABOVE THE FORWARD
ESTIMATES, WE DID THIS TO AVOID THE STATES HAVING TO CUT
EXPENDITURE AND INCREASE CHARGES AND TAXES IN AREAS THAT WOULD BE
MORE DAMAGING TO RECOVERY THAN COMMENSURATE ADJUSTMENTS IN
THE COMMONWEALTH BUDGET. QUEENSLAND'S SHARE OF THE ADDITIONAL
$ 155 MILLION REVENUE GRANT WAS $ 31 MILLION, THIS ADDITIONAL
GRANT TOGETHER WITH THE INCR EASED LOAN COUNCIL FUNDING SHOULD
ENABLE THE QUEENSLAND GOVERNMENT TO INTRODUCE A RANGE OF
NEW ACTIVITIES TO PROMOTE RECOVERY WHILE AVOIDING TAXATION
INCREASES IN ITS NEXT BUDGET.
THIS RESPONSE TO THE PREMIERS WAS APPROPRIATE FROM THE
POINT OF VIEW OF THE NATIONAL ECONOMY AS A WHOLE, BUT IT HAD
THE EFFECT OF COMPOUNDING OUR OWN BUDGETARY DIFFICULTIES IN
1983-3L48 THERE IS NO PAINLESS WAY OF REDUCING A PROSPECTIVE
BUDGET DEFICIT BY ONE BILLION DOLLARS, IN THE MAY STATEMENT WE
WERE ABLE TO ANNOUNCE COMMITMENTS TO KEY ELEMENTS OF OUR
RECOVERY PROGRAM, NOTABLY THE PACKAGE OF NEW HOUSING POLICIES AND
THE COMMUNITY EMPLOYMENT PROGRAM, AT THE SAME TIME AS WE REDUCED
SOME OF THE OUTLAYS AND TAX EXPENDITURES WHICH WE HAD INHERITED,
THE NET EFFECT WAS TO REDUCE THE PROSPECTIVE 1983-84 DEFICIT BY
HALF A BILLION DOLLARS. SOME HARD DECISIONS HAD TO BE TAKEN TO
ACHIEVE THIS RESULT, BUT AS WAS AGREED BY ALL SIGNATORIES TO THE
SUMMIT COMMUNIQUE, NATIONAL ECONOMIC RECOVERY REQUIRES A SHARING
OF THE BURDEN OF RESTRAINT BY ALL AUSTRALIANS WHO ARE IN A
POSITION TO ACCEPT IT.
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RESPONSIBLE FISCAL MANAGEMENT HAS REQUIRED A PAINFUL
REASSESSMENT OF PRIORITIES, WE HAVE ENDEAVOURED TO IMPLEMENT
QUICKLY THOSE PARTS OF OUR ELECTION PROGRAM WHICH ARE MOST
IMPORTANT TO ECONOMIC RECOVERY AND TO ASSISTANCE TO AUSTRALIANS
WHO HAVE SUFFERED MOST SEVERELY DURING THE RECESSION.
WE WISH WE HAD INHERITED A POSITION IN WHICH WE COULD
DO MORE. BUT AS I SAID BEFORE, OUR STRONGEST EFFORTS HAVE BEETN
DIRECTED TOWARDS FULFILLING OUR FUNDAMENTAL PLEDGES ON
UNEMPLOYMENT AND INFLATION. WE HAVE HAD TO WORK WITHIN THE
LIMITS OF THE PROBLEMS WE INHERITED, AND WE WOULD HAVE LET
DOWN THE AUSTRALIAN PEOPLE IF WE HAD RISKED DAMAGING RECOVERY,
BY PRETENDING THAT THE THREE BILLION DOLLARS ADDITION TO THE
PROSPECTIVE DEFICIT MADE NO DIFFERENCE$
IDO NOT COUNT AMONGST MY DISAPPOINTMENTS THE FACT
THAT WE HAVE CONFRONTED SOME LONGSTANDING DISTORT10ONS IN THE
AUSTRALIAN TAXATION SYSTEM. TAX EVASION AND AVOIDANCE IN
RECENT YEARS HAVE REMOVED ANY SEMBLANCE OF EQUITY FROM THE
AUSTRALIAN TAXATION SYSTEM, AND my GOVERNMENT HAS A POWERFUL
MANDATE TO REMOVE THEM.
THE ACHIEVEMENT OF TAX EQUITY WAS ONE IMPORTANT
PURPOSE OF THE REFORMS OF SUPERANNUATION ARRANGEMENTS THAT WE
ANNOUNCED fN MAY. WE WERE SEEKING TO CLOSE A MAJOR TAX LOOPHOLE,
OUR PROPOSAL IMPOSES A VERY MODERATE TAX ON SUCH
LUMP SUM PAYMENTS IN RESPECT ONLY OF FUTURE EMPLOYMENT. WE ARE
REDUCING THE COST TO THE REVENUE OF A TAXATION CONCESSION
THAT HAS ALWAYS BEEN MOST USEFUL TO RELATIVELY WELL-OFF
MEMBERS OF THE WORKFORCE. Il/ 12
-12-
THE MAY STATEMENT FORESHADOWED CONSULTATIONS WITH
INTERESTED PARTIES ON THE FINAL FORM OF THE PROPOSALS, THE
MODIFICATIONS ANNOUNCED YESTERDAY BY THE TREASURER MEET ALL
REASONABLE POINTS THAT HAVE BEEN MADE IN THE DISCUSSIONS,,
WHILE PRESERVIN4G THE MOST IMPORTANT PRINCIPLES EMBODIED IN
OUR REFORM,
OTHER POLICIES-E. OR RECOVERYX
WHILE FISCAL POLICY IS OBVIOUSLY OF CENTRAL IMPORTANCE
IN ESTABLISHING A BASE FOR ECONOMIC RECOVERY, IT CAN BE EFFECTIVE
ONLY WITHIN APPROPRIATE MONETARY AND WAGES POLICIES, IN THESE
AREAS, WE HAVE GONE A LONG WAY SINCE MARCH IN IMPLEMENTING
POLICIES WHICH WILL SUPPORT RECOVERY WHILE HOLDING INFLATION
ON A DOWNWARD PATH.
WE WILL MAINTAIN SUFFICIENT MONETARY GROWTH TO ALLOW
THE ECONOMY TO REALISE ITS FULL POTENTIAL FOR GROWTH IN OUTrPUT.
THIS RATE OF MONETARY GROWTH MUST ALLOW FOR THE MINIMUM FEASIBLE
RATE OF PRICE INCREASES IN THE ECONOMY, WHICH ITSELF WILL BE
STRONGLY INFLUENCED BY THE WAGE-SETTING SYSTEM, THUS WE WILL
ALLOW SUFFICIENT MONEY GROWTH TO FINANCE THE LIKELY AND
DESIRABLE RATE OF GROWTH IN NOMINAL GROSS DOMESTIC PRODUCT.
THE " FIGHT INFLATION FIRST' STRATEGY OF OUR
PREDECESSORS IM~ PLIED THE TIGHTEST POSSIBLE MONETARY POLICY.
IN PRACTICE, MONETARY POLICY OVER THE PAST SEVEN YEARS WAS
CHARACTERISED MORE BY INCONSISTENCY THAN BY TIGHTNESS,
WI1TH OUR POLICIES SUPPORTED BY THE PRICES AND INCOMES
ACCORD, OUR MO1NETARY OBJECTIVES ARE DIFFERENT. WE AIM TO
IMPLEMENT CONSISTENTj FIRM POLICIES THAT ACCOMMODATE STRONG
GROWTH, BUT NOT INFLATION.
-13-
FIGHTING INFLATION AND UNEMPLOYMENT AT THE SAME
TIME REQUIRES US TO MANAGE THE EXCHANGE RATE WITH AT LEAST
ONE EYE ON THE COMPETITIVENESS OF OUR EXPORT AND IMPORTCOMPETING
INDUSTRIES, AND NOT SOLELY AS AN INSTRUMENT OF
ANTI-INFLATION POLICIES.
WE SHOULD REMEMBER THAT AUSTRALIA WILL BE AFFECTED
BY PRESSURES IN INTERNATIONAL FINANCIAL MARKETS, WHATEVER
HAPPENS AT HOME. AUSTRALIAN REAL INTEREST RATES WILL TEND TO
RISE IF UNITED STATES* REAL INTEREST RATES RISE. ON OUR RECENT
VISIT TO THE UNITED STATES, THE TREASURER AND I HAD EXTENSIVE
DISCUSSIONS ON MONETARY DEVELOPMENTS WITH TREASURY SECRETARY,
DONALD REGAN, THE CHAIRMAN OF THE FEDERAL RESERVE, PAUL VOLCKE?,.
OTHER SENIOR OFFICIALS IN THE UNITED STATES, AND LEADING
PARTICIPA1NTS IN THE NEW YORK FINANCIAL MARKETS. WHILE THESE
LEFT US WITH A GREAT DEAL OF CONFIDENCE IN THE SHORT-TERM STRENGTH
OF THE UNITED STATES RECOVERY, THERE WAS ALSO CAUSE FOR SOME
ANXIETY THAT THE CONTINUATION OF EXTREMELY HIGH BUDGET DEFICITS
COULD LEAD TO UPWARD PRESSURE ON UNITED STATES INTEREST RATES AS
PRIVATE INVESTMENT EXPANDED IN 1984 AND 1985
WHILE WE CANNOT INSULATE OURSELVES CO. MPLETELY FROM4
FINANCIAL DEVELOPMENTS ABROAD, CONDITIONS WITHIN OUR OWN FINANCIAL
MARKETS CAN EXACERBATE OR AMELIORATE THE PRESSURES CONING FROM
OVERSEAS. GIVEN THE CONSIDERABLE PROSPECT THAT INTERNATIONAL
FINANCIAL MARKETS WILL EXERT UPWARD PRESSURE ON AUSTRALIAN
INTEREST RATES IN THE PERIOD AHEAD, WE WILL BE WORKIN G
TO ENSURE THAT DEVELOPMENTS AT HOME DO NOT COMPOUND THE THREAT
TO THE RECOVERY OF PRIVATE INVESTMENT,
-i1l-
ALTHOUGH THERE IS WIDE ACCEPTANCE THAT A DEFICIT
AROUND $ 8.5 BILLION WOULD BE APPROPRIATE IN THE CURRENT
FINANCIAL YEAR, THE COMMONWEALTH WILL NEED TO REDUCE THE
DEMAND IT MAKES ON FINANCIAL MARKETS AS PRIVATE INVESTMENT
INCREASES IN THE PROCESS'OF RECOVERY,
THE LUMP SUM SUPERANNUATION ARRANGEMENTS WERE ONE
OF A NUMBER OF MEASURES IN THE MAY STATEMENT WHICH HAVE
THEIR MAIN EFFECT IN REDUCING THE BUDGET DEFICIT NOT IN
1983-84, BUT IN LATER YEAR~ S. THE CHANGES IN THE SUPERANNUATION4
ARRANGEMENTS ANNOUNCED OVER THE WEEKEND DO NOT SUBSTANTIALLY
ALTER THE MAIN THRUST OF. THE MAY MEASURES, WHICH WAS TO
REDUCE VERY SUBSTANTIALLY THE PROSPECTIVE DEFICIT IN THE
YEARS AHEAD. THE PROCESS OF RECOVERY ITSELF WILL TEND TO REDUCE
FUTURE DEFICITS, BY RAISING REVENUE AND REDUCING RECESSIONRELATED
OUTLAYS, AT THE TIME OF THE SUMMIT, WE ESTIMATED
THAT ABOUT HALF THE HYPOTHETICAL DEFICIT WAS CYCLICALi AND
COULD BE EXPECTED TO FALL AWAY WITHOUT DISCRETIONARY POLICY
ACTION AS THE ECONOMY RETURNED TO A MORE NORMAL LEVEL OF
OPERATION. THE RATES OF GROWTH ENVISAGED IN SNECARio A,
AS PRESENTED TO THE SUMMIT, WOULD REDUCE THE 1984I-85 DEFICIT
BY OVER A BILLION DOLLARS IN 1O'-5FROM THE CURRENT YEAR'S
LEVELS.
IT IS NOT CLEAR AT THIS EARLY STAGE WHETHER
THIS CYCLICAL EFFECT, TOGETHER WITH THE STRUCTURAL EFFECTS OF
THE MAY STATEMENT AND THE B3UDGET, WILL REDUCE NEXT YEAR'S
DEFICIT ENOUGH TO MEET OUR STABILITY OBJECTIVES WITHOUT
FURTHER DISCRETIONARY ACTION. THIS WILL DEPEND VERY MUCH ON
THE COURSE OF PRIVATE INVESTMENT IN THE RECOVERY, AS WELL AS
ON WIDER DEVELOPMENTS IN FINANCIAL MARKETS, BUT IT IS LIKELY
THAT FURTHER REDUCTIONS IN THE STRUCTURAL BUDGET DEFICIT WILL BE
REQUIREC FOR NEXT YEAR,
MIY COLLEAGUES AN~ D I HAD LITTLE MORE THAN THREE MONTHS
WITHIN WHICH TO EXAMINE CRITICALLY THE EXPENDITURE COMMITMENTS
WHICH WE HAD INHERITED FROM THE PREVIOUS GOVERNMENT, FROM THE
TIME OF THE SUMMIT TO THE COMPLETION OF WORK ON THE EXPENDITURE
SIDE OF THE BUDGET,
THE ACHIEVEMENTS OF THIS BRIEF PERIOD HAVE BEEN
CONSIDERABLE, IN REORDERING PRIORITIES TOWARDS THE REQUIREIMENTS
OF ECONOMIC RECOVERY AND, IN THE WELFARE AREA, OF THE GENUINELY
NEEDY IN OUR SOCIETY. BUT WE CAN GO FURTHER WHEN WE ARE IN
CONTROL OF THE BUDGET-MAKiNG PROCESS NOT ONLY IN THE FINAL
MONTHS, BUT IN THE FULL YEAR LEADING UP TO THE BUDGET, WIT:; A
FULL YEAR TO L lA BUDGET, WE WOULD P. E LOOKING TO INTE-' RATE
FINANCIAL " Di MANPOWER REQUIREMENTS MORE EFFECTIVELY THAN IS
POSSIPL' 2 WITHIN THE ARRANGEMENTS THAT WE HAVE INHERITED,
OUR EXPENDITURE REVIEW PROCF%" WILL BECOME PART OF THE
NORMAL OPERATIONS OF GOVERNMENT, OPERATION'S LIKE THAT OF THE
EXPENDITURE REVIEW COMtITTEE IM RECENT MONTI-S WILL CONTINUE TO
./ 16
REALLOCATE EXPENDITURE III LINE WITH THE REQUIREMENTS OF EQUITY
AND GROWTH AS WE REDUCE THE STRUCTURAL BUDGET DEFICIT IN THE
COURSE OF ECONOMIC RECOVERY$
OJR EXPANSIONARY FISCAL AND MONETARY POLICIES ARE UNDERPINNED
BY THE PRICES AND INCOMES ACCORD. WHEN THE AUSTRALIAN ECONWY WAS
STRUGGLING INTO RECOVERY IN THE SO-CALLED RESOURCES BOOM IN
1981, A WAGES EXPLOSION HELPED TO TURN A GREAT OPPORTUNITY
INTO A DISASTER, OUR PREDECESSORS AND, SPECIFICALLY; MY OWN
PREDECESSOR, INVITED THE UNIONS TO USE THEIR POWER IN THE
MARKET PLACE, AUSTRALIAN UNIONS ACCEPTED THEIR INVITATION,
THE WAGES EXPLOSION WAS AN INEVITABLE RESULT OF ABANDONING
THE CENTRALISED WAGE-FIXING SYSTEM AT A TIME OF RISING
EMPLOYMENT. WAGES POLIC Y IN ANY COUNTRY MUST BE ATTUNED TO THE
TRADITIONS OF THE LABOUR MARKET, IN AUSTRALIA, STRONG TRADE
UNIONS HAVE SHOWN SOME WILLINGNESS TO ACCEPT A DEGREE OF
RESTRAINT IN THE WIDER INTERESTS OF AUSTRALIAN WORKERS, SO
LONG AS THE OVERALL FRAMEWORK WITHIN WHICH THEY ARE OPERATING
IS SEEN AS BEING EQUITABLE. THE AUSTRALIAN TRADITION ALSO
EMBODIES STRONG COMMITMENT TO RIGID WAGE RELATIVITIES,$ UNDERSTOOD
AS itCOMPARATIVE WAGE JUSTICE" WHICH CAUSE WAGE GAINS BY STRONG
UNIONS TO BE TRANSIMITTED WIDELY THROUGH THE ECONOMY. THE LEGAL
SUPERSTRUCTURE, INCLUDING THE FEDERAL STRUCTURE OF ARBITRATION
AND CONCILIATION, MAKES THESE RIGIDITIES LESS MALLEABLE TO
ECONOMIC PRESSURES THAN THEY OTHERWISE WOULD BE,
-17-
THESE AUSTRALIAN TRADITIONS, WHICH CANNOT BE
ABOLISHED AT THE WHIM OF ANY GOVERNMENT. PROVIDE AT THE SAME
TIME A THREAT TO THE COMING RECOVERY, AND AN OPPORTUNITY TO
BUILD A DURABLE RECOVERY. THE THREAT WOULD HAVE BEEN REALISED
IF WAGES POLICY HAD IGNORED THE TRADITIONS. THE PROMISE CAN
BE REALISED BY THE APPROACH THAT WE ARE ADOPTING 1TO THE PRICES
AND INCOMES ACCORD.
F: OLLOWING THE SUMMIT AND IN OUR SUBMISSION TO THE
CURRENT WAGE CASE,, MY GOVERNMENT INDICATED SUPPORT FOR A
GENERAL WAGE INCREASE IN THE ORDER OF 3 To 4 PER CENT IN THE
SECOND HALF OF THIS YEAR, UNTIL THE GOOD NEWS ASSOCIATED
WITH THE BREAKING OF THE DROUGHT RAISED FOOD PRICES SHARPLY,
IT SEEMED THAT AN INCREASE BASED ON THE INCREASE IN THE C. P-.
IN THE FIRST HALF OF THIS YEAR MIGHT FALL COMFORTABLY WITHIN
THIS RANGE. IN THE NEW CIRCUMSTANCES, WE JUDGED THAT IT WAS
BEST TO ACCEPT A WAGE INCREASE OF 4.3 PER CENT, TO SECURE
WORKERS' FIRM COMMITMENT TO PURSUING WAGE CLAIMS ONLY THROUGH THE
CENTRALISED SYSTEM,
IF THE RECOVERY PROCEEDS STRONGLY IN THE YEAR AHEAD
AND BEYOND, AS IT SHOULD EVEN WITH A WAGE INCREASE SLIGHTLY
HIGHER THAN WE WOULD HAVE PREFERRED IN OTHER CIRCUMSTANCES,,
THIS WAGE ADJUSTMENT WILL BE SEEN AS A GOOD INVESTMENT IN
FUTURE WAGE MODERATION. IN THE FIRST HALF OF NEXT YEAR, THE
INTRODUCTION OF MEDICARE WILL TAKE A FEWq PERCENTAGE POINTS
OFF THE INCREASE IN THE CONSUMER PRICES INDEX, AS A RESULT,
EVEN WITH FULL-WAGE INDEXATION, MONEY WAGE INCREASES IN 1984
SHOULD BE IN LINE WITH THE UNITED STATES AND OTHER MAJOR
ECONOMICES EXPERIENCING STRONG GROWTH WITH RELATIVELY LOW INFLAT1(
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ON THE OTHER HAND, IF AUSTRALIAN RECOVERY IS
DELAYED, OR INSUFFICIE14TLY STRONG TO PROMISE PROGRESS IN
REDUCING UNEMPLOYMENT, THE PRICES AND INCOMES ACCORD PROVIDES
A FRAMEWORK FOR ADJUSTMENT OF POLICY, INCLUDING THE TIMING
OF WAGE INCREASES. OF COURSE, THE ARBITRATION COMMISSION RETAINS ITS
INDEPENDENCE, THE COMM4ISSION WAS THE INSTRUMENT PREFERRED BY
ALL PARTIES AT THE SUMMIT, INCLUDING EMPLOYERS, FOR
ADMINISTERING THE RETURN TO CENTRALISED WAGE FIXATION, THE
GOVERNMENT HAS MADE ITS OWN VIEWS KNOWN. IN THE PRESENT CASE,
AND IN FUTURE, EMPLOYERS AND THE UNlIONS HAVE THE OPPORTUNITY
TO CONVINCE THE COMMISSION THAT IT SHOULD ADOPT A DIFFERENT
COURSE. THE AUSTRALIAN TRADE UNION MOVEMENTS IS NOT A
MONOLITHi SOME-UNIONS FROM TIME TO TIME WILL FEEL THAT
THEIR OWN INTERESTS MIGHT BE SERVED BY PURSUING CLAIMS
OUTSIDE THE CENTRALISED SYSTEM. THE RETURN TO CENTRALISED
WAGE-SETTING WILL NOT DELIVER THE BENEFITS OF ECONOMIC
RECOVERY TO ALL AUSTRALIANS IF WORKERS FEEL FREE TO PURSUE
CLAIMS OUTSIDE THE SYSTEM, IF THAT BECAME WIDESPREAD, WE
WOULD HAVE LOST THE BASIS FOR OUR EXPANSIONARY FISCAL AND
MONETARY POLICIES, IDO NOT BELIEVE THAT AUSTRALIANS WILL'
LIGHTLY LET THIS HAPPEN, IWE ARE REASSURED BY THE STRENGTH
OF THE ACIU's COMMITMENT TO THE SYSTEM, THE ACTU LEADERSHIP
EXPECTS THE COMMISSION TO MAKE COMPLIANCE WITH THE SYSTEM A
CONDITION OF A GENERAL WAGE INCREASE,
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QDImA-POLICI ES FOR, LQIGcTERM-GROWTH
THE FISCAL, MONETARY AND WAGES POLICIES WHICH WE
HAVE PUT INTO PLACE OVER THE PAST FIVE MONTHS ESTABLISH AN
1INTEGRATED B~ ASE FOR STEADY GROWTH IN OUTPUT AND EMPLOYMCNT,
ACCUM'ANIE) BY THE MODERATION OF INF~ LATION.
BUT WHETHER AUSTRALIAN LIVING STANDARDS CONTINUE TO
RISE BEYOND THE LIFE OF THE PRESENT PARLIAMENT AND INTO THE
NEXT, AND BEYOND, DEPENDS ON OUR SUCCESS IN ALLOCATING OUR
RESOURCES TO THEIR MOST PRODUCTIVE USES. PRODUCTIVE USE OF
OUR RESOURCES REQUIRES ACCEPTANCE OF NEW WAYS OF DOING THINGS,,
STRUCTURAL CHANGE IN OUR ECONOMY,, RAPIDLY CHANGING PATTERNS
OF FOREIGN TRADE, AND HIGH LEVELS OF INVESTMENT FROM HOME AIND
ABROAD, AN AUSTRALIAN SOCIETY THAT IS BROADLY UNITED ON THE
GREAT NATIONAL GOALS, THAT IS SEEN BY MOST OF ITS CITIZENS
AS A FAIR SOCIETY, AND WHICH OFFERS ITS PEOPLE SECURITY OF
INCOMES AND EMPLOYMENT, WILL EMBRACE THESE CHANGES, BUT A
DIVIDED AUSTRALIA, A SOCIETY THAT IS SUSPICIOUS OF ITS
GOVERNMENT, WILL CLING TO WHAT IT HAS,
A CONSERVATIVE AUSTRALIA, AN AUSTRALIA THAT IS AFRAID
OF CHANGE, WILL BE CONDEMNED TO DECLINING LIVING STANDARDS
AND AN INCREASINGLY INSECURE PLACE IN A RAPIDLY CHANGING
WORLD. .120
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LONG-TERM GROWTH IN OUR LIVING STANDARDS IS
FEASIBLE ONLY IF WE MAINTAIN OPEN INVESTMENT AND TRADE
POLICIES, BUT THESE POLICIES WILL BE POLITICALLY FEASIBLE
ONLY IF AUSTRALIANS BELIEVE THAT THE BENEFITS OF PROSPERITY
ARE BEING SHARED EQUITABLY,
WE MUST PREPARE TO TAKE ADVANTAGE OF NEW TRADING
OPPORTUNITIES IN NEW INDUSTRIES IN NEW PLACES,, AS THE
DEVELOPING COUNTRIES OF NORTHEAST ASIA AND SOUTHEAST ASIA
OVERTAKE JAPAN AS THE MAIN CENTRES OF STRONG INDUSTRIAL
GROWTH IN OUR REGION AND. INDEED, IN THE WORLD,
WE MUST CREATE NEW OPPORTUNITIES IN THE RESOURCES
AREA BY FINDING NEW MARKETS OUTSIDE OUR OWN REGION.
RATIONALISATION OF FISCAL ARRANGEMENTS I N THE COAL INDUSTRY,*
THROUGH CO-OPERATION BETWEEN THE COMMONWEALTH AND THE STATES,
ALONG THE LINES MY GOVERNMENT HAS BEEN SEEKING, COULD OPEN
A NEW ERA OF EXPANSION OF COAL PRODUCTION AND EXPORT TO
EUROPE. WE WILL CONTINUE TO USE OUR INFLUENCE AS A
GOVERNMENT TO SECURE OUR TRADITIONAL MARKETS. THIS IS CLEAR
FROM THE PRIORITY MY GOVERNMENT H4AS GIVEN TO SECURING OUR
BEEF MARKETS IN THE UNITED STATES, TO BUILDING A NEW
INTERNATIONAL SUGAR AGREEMENT, AND TO PREVENTING BILATERAL
DEALS BETWEEN THE UNITED STATES AND JAPAN DAMAGING OUR OWN
FOOD AND MIINERALS MARKETS IN JAPAN.
IT IS NOT APPROPRIATE TO INTRODUCE NEW PROGRAMMES
TO LIBERALISE IMPORTS AT THE HEIGHT OF RECESSION. BUT ANY
ADDITIONAL ASSISTANCE THAT WE PROVIDE TO LESS COMPETITIVE
INDUSTRIES WILL BE DIRECTED AT ENCOURAGING RATHER THAN
DISCOURAGING PRODUCTIVITY GROWTH, AND TO THE LONG-TERM
VIABILITY WITHOUT PROTECTION OF THE INDUSTRY, THIS HAS
BEEN OUR OBJECTIVE IN NEGOTIATIONS WITH THE STEEL INDUSTRY,
THE OUTCOME OF WHICH WILL BE ANNOUNCED BY SENATOR BUTTON
LATER THIS WEEK.
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PARADOXICALLY, RAPID STRUCTURAL CHANGE AND
PRODUCTIVITY IMPROVEMENT REQUIRE STABILITY OF POLICY,
AUSTRALIAN INDUSTRY HAS SUFFERED FROM EXCESSIVELY RAPID
CHANGE IN POLICY IN RECENT YEARS. WHILE WE WILL BE DOING
ALL THAT WE CAN TO PROMOTE ECONOMIC EFFICIEN4CY AND EQUITABLE
INCOME DISTRIBUTION), WE WILL AVOID CHANGE FOR ITS OWN SAKE.
MORE GENERALLY, THE STRONG POLITICAL POSITION OF
my GOVERNMENT PROVIDES A BASIS FOR GREATER POLICY CONTINUITY
THAN AUSTRALIA HAS KNOWN FOR MANY YEARS. AND OUR SEARCH FOR
CO-OPERATIVE SOLUTIONS To AUSTRALIAN NATIONAL PROBLEMS,
SYMBOLISED IN THE PRICES AND INCOMES ACCORD, THE SUMMIT,
AND THE PREMIERS' CONFERENCE, SHOULD REDUCE THE HUGE COSTS
TO LONG-TERM GROWTH OF THE DEBILITATING CONFLICTS IN
INDUSTRIAL RELATIONS AND THE FEDERAL-STATE AND INTER-STATE
RIVALRIES THAT HAVE HELD BACK AUSTRALIAN NATIONAL GROWTH
FOR M'ANY YEARS& IDON' T BE-LIEVE IT'S POSSIBLE TO EXAGGERATE THE
COST OF THE CONFRONTATION AND CONFLICT OF THE KIND WHICH
CHARACTERISED OUR SOCIETY FOR MUCH OF THE PAST DECADE THE
COST, NOT JUST IN MATERIAL TERMS, BUT IN TERMS OF NATIONAL
COHESION AND PURPOSE. I BELIEVE IT WAS THE RECOGNITION OF
THE COSTS OF AVOIDABLE CONFLICT AND I EMPHASISE ~ A AMLE
CONFLICT THAT MOTIVATED THE OVERWHELMING MAJORITY OF THE
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PARTICIPANTS AT THE SUMMIT, AND I STILL BELIEVE THAT THE
ESSENTIAL SPIRIT OF THE SUMMIT CAN BE SUSTAINED AND PUT TO
WORKj IN A THOROUGHLY PRACTICAL WAY.
THE MOST CONCRETE EXAMPLE OF THE CONTINUING-WORK
OF THE SUMMIT is EPAC THE ECONOMIC PLANNING AND ADVISORY
COUNCILS As IT DEVELOP, EPAC'S GENUINE ADVISORY ROLE WILL
REINFORCE, AS PART OF THE NORMAL PROCESS OF ECONOMIC
DECISION-MAKING IN THIS COUNTRY THE TWO ELEMENTS WHICH
WERE THE KEY TO THE SUCCESS OF THE SUM1MIT CONSULTATION AND
KNOWLEDGE-SHARING. EPAC WILL ENSURE THAT THESE PROCESSES
OF CONSULTATION AND INFORMATION-SHARING WILL BE PLACED ON A
CONTINUING BASlSj FOR THE FIRST TIME IN AUSTRALIA'S HISTORY,
AND INDEED, THE ENTIRE EFFORT OVER THE PAST FIVE
MONTHS HAS BEEN DIRECTED TOWARDS CREATING A NEW,, AND
FOR AUSTRALIA, UNIQUE FRAMEWORK FOR ECONOMIC DECISION-MAKING
IN THIS NATION. WE HAVE NOT REGARDED OUR TASK AS BEING MERELY TO
DRAW UP AN ANNUAL BUDGET AND THEN TO PRESENT THAT BUDGET AS
THE BE-ALL AND END-ALL OF ECONOMIC POLICY,
WHAT WE HAVE DONE AND IT IS UNPRECEDENTED IN
AUSTRALIA IS TO ESTABLISH A COMPREHENSIVE AND INTEGRATED
BASIS FOR CONSISTENT, LONG TERM ECONOMIC PLANNING, AND IN
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ESTABLISHING THAT COMPREHENSIVE AND INTEGRATED FRAMEWORK,
WE HAVE SOUGHT TO INVOLVE, ON A CONTINUING BASIS, THE
RELEVANT SECTIONS OF THE COMMUNITY OTHER GOVERNMENTS,
BUSINESS, INCLUDING SMALL BUSINESS., THE UNIONS, THE RURAL
SECTOR, THE COMMUNITY GROUPS WHICH ALL HAVE SUCH A HIGH
STAKE IN THE SUCCESS OF OUR POLICIES, IN BOTH THE SHORT AND
LONGER TERM. FOR WHAT IS AT STAKE IS NOTHING LESS THAN THE
FUTURE PROSPERITY AND WELLBEING OF AUSTRALIA ITSELF. AND
I DO BELIEVE THAT WHEN THE TIME COMES AND THE WORK OF THE PAST
FIVE MONTHS AND I MEAN THE REAL WORK, OUR REAL CONCERNS AS
A GOVERNMENT CAN BE JUDGED IN THE PROPER PERSPECTIVE OF
HISTORY, IT WILL BE ACKNOWLEDGED THAT WHAT HAS BEEN ACHIEVED
NOT JUST BY MY GOVERNMENT, BUT BY ALL THE SECTIONS OF THE
COMMUNITY, LIKE YOURSELVES, WHO HAVE CONTRIBUTED TO THE WORK
IT WILL BE ACKNOWLEDGED THAT WHAT HAS BEEN ACHIEVED HAS BEEN
A TRANSFORMATION -A TRANSFORMATION INATTITUDES, IN THE APPROACH
TO ECONOMIC DECISION-MAKING, AND IN THE MEANS AVAILABLE TO
GOVERNMENT AND THE COMMUNITY FOR BETTER, MORE SOUNDLY-BASED
ECONOMIC DECISION-MAKING THAN WE HAVE EVER HAD BEFORE,