C 14E C:-j AUSTRALIA
PRIME MINISTER
SPEECH BY THE PRIME MINISTER, THE HON. R. J, HAWKE, MP.
PRESS CLUB
BRISBANE AUGUST 1983
As I SAID AT THE BRISBANE CHAMBER OF COMMERCE ON
MONDAY, THE TIMING OF THIS EXTENSIVE VISIT TO QUEENSLAND
IS ENTIRELY FORTUITOUS. IT HAD ABSOLUTELY NOTHING TO DO
WITH THE REMARKABLE EVENTS NOW UNFOLDING; AND OF COURSE,
NO ONE COULD HAVE FORESEEN THEMI
AND OF COURSE, I'D BE THE LAST PERSON TO WANT TO
INTRUDE ON MR BJELKE-PETERSEN'S PROBLEMS; AND I DON'T
PARTICULARLY WISH TO CANVASS THE POLITICAL CRISIS INTO WHICH
QUEENSLAND HAS BEEN PLUNGED SO SUDDENLY.
BUT I MIGHT JUST SAY THAT IT IS JUST AS WELL FOR THE
PEOPLE OF QUEENSLAND THAT MR PETERSEN DOESN'T APPLY TO HIMSELF
AND TO HIS ASSOCIATION WITH LABOR PEOPLE THE SAME STANDARDS
THAT HE APPLIES TO HIS COALITION PARTNERS.
BECAUSE I CAN TELL YOU THAT MR PETERSEN HAD NO
DIFFICULTY AT ALL IN TAKING FROM A LABOR PRIME MINISTER AND
A LABOR TREASURER, AN EXTRA $ 31 MILLION FOR QUEENSLAND WHICH
WE OFFERED AT THE PREMIERS' CONFERENCE. AND THAT $ 31 MILLION
WOULD ENABLE THE QUEENSLAND GOVERNMENT, IF IT HAD ANY
MANAGERIAL CAPACITY, TO INTRODUCE A WIDE RANGE OF NEW ACTIVITIES
TO PROMOTE RECOVERY WITHOUT HAVING TO INCREASE ITS OWN TAXES.
IT'S ABSOLUTELY ESSENTIAL FOR QUEENSLAND
THAT THERE SHOULD BE STABLE GOVERNMENT HERE TO ALLOW THE
STATE TO TAKE ADVANTAGE OF THE INITIATIVES WE HAVE
TAKEN. FOR THE FACT IS THAT THERE CAN BE NO
BROADLY-BASED NAT IONAL* ECONOMIC RECOVERY UNLESS
QUEENSLAND PARTICIPATES IN IT, AND SHARES IN ITS BENEFITS,
AND THAT, OF COURSE, IS WHY THE PRESENT
EXTRAORDINARY POLITICAL CRISIS IN QUEENSLA1ND IS A
MATTER OF NATIONAL CONCERN.
BECAUSE, ONE OF THE THINGS THAT IS ABSOLUTELY
ESSENTIAL FOR STEADY NATIONAL RECOVERY IS STABILITY
AND PREDICTABILITY. THAT IS OF PARTICULAR CONCERN TO
THE BUSINESS COMMUNITY IN QUEENSLAND AS MUCH AS
ANYWHERE IN AUSTRALIA,
AND ONE OF THE REASONS WHY THE AUSTRALIAN
BUSINESS COMMUNITY, TO A DEGREE NOT KNOWN IN AUSTRALIA
SINCE THE WAR, WITHDREW THEIR POSITIVE SUPPORT FOR
OUR POLITICAL OPPONENTS IN THE LAST FEDERAL ELECTIONS;
AND EVEN TO A CERTAIN EXTENT, TRANSFERRED THAT SUPPORT
To LABOR, 13
I
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TtII AUSTRALIAN BUSINESS CO-MUNITY HAD BECOME
DISENCHANTED AND DISTURBED BY THE POLITICAL INSTABILITY
AND UNPREDICTABILITY OF POLICY WHICH HAD COME TO CHARACTERISE
THE COALITION GOVERNMENT OF OUR PREDECESSORS.
BUSINESS CANNOT PLAN EFFECTIVELY, CANNOT TAKE
THE INITIATIVES AND SOMETIMES, THE RISKS, ASSOCIATED WITH
THE CREATION OF NEW JOBS, IN AN ATMOSPHERE OF UNPREDICTABILITY
AND INSTABILITY. AND THE EVENTS IN QUEENSLAND OVER THE PAST FEW
DAYS HAVE PROVIDED A RECIPE FOR INSTABILITY UNKNOWN IN
QUEENSLAND FOR MORE THAN A QUARTER OF A CENTURY.
THERE IS NOW NO POSSIBLE PERMUTATION OR COMBINATION
OF COALITION POLITICIANS WHICH COULD RESTORE STABILITY TO
QUEENSLAND, THAT CAN ONLY BE DONE BY THE PEOPLE
THEMSELVES. AND BECAUSE OF QUEENSLAND'S SIGNIFICANCE IN THE
NATIONAL ECONOMY, IT WILL BE SOMETHING WHICH AUSTRALIANS
EVERYWHERE WILL WATCH WITH INTEREST AND CONCERN, s/ 4
AND OF COURSE IT IS PRECISELY BECAUSE OF
QUEENSLAND'S SIGNIFICANCE, IN TERMS OF THE NATION, THAT
I DECIDED THAT I WANTED TO MAKE QUEENSLAND MY FIRST
MAJOR VISIT OUTSIDE THE CAPITALS, AS SOON AS THE BASIC
WORK OF ESTABLISHING A NEW GOVERNMENT AND LAYING DOWN THE
FOUNDATIONS FOR THE NEW ECONOMIC PROGRAM THE PROGRAM
OF NATIONAL RECONCILIATION,, RECOVERY AND RECONSTRUCTIONHAD
BEEN COMPLETED. AND THAT IS WHAT WE'VE BEEN DOING
OVER THE PAST FIVE MONTHS.
IN THE POLICY SPEECH I SAID THIS:
" WE OFFER NO MIRACLES. WE OFFER NO OVERNIGHT
SOLUTIONS FOR THE IMMEDIATE PRO1BLEMS WE FACE OR
THE DEEP-SEATED PROBLEMS WE MUST FACE TOGETHER...
WHAT I DO OFFER IS A PROGRAM TO PRODUCE GROWTH
AND EXPANSION IN THE ECONOMY,, ACHIEVABLE GOALS
FOR THE REBUILDING AND RECONSTRUCTION OF THIS NATION."
WHAT WE HAVE DONE IN THIS INITIAL PERIOD IS TO LAY FIRM
FOUNDATIONS TO FULFIL OUR COMMITMENTS OVER THE TERM OF
THIS GOVERNMENT AND BEYOND.
OUR OVERRIDING CONCERN HAS BEEN TO RESTORE BALANCE
TO THE ECONOMY AND TO ESTABLISH THE BASIS FOR SUSTAINED
ECONOMIC GROWTH,
IF WE ARE TO SERIOUSLY TACKLE UNEMPLOYMENT
IF WE ARE TO RAISE THE LIVING STANDARDS OF ALL
AUSTRALIJANS WE MUST LIFT AUSTRALIA' S ECONOMIC PERFORMANCE
WE MUST ACHIEVE A RETURN TO GROWTH,
I BELIEVE A RETURN TO ECONOMIC GROWTH IS NOW
IN SIGHT. THIS GROWTH SHOULD START TO GATHER PACE DURING
THE COURSE OF THIS FINANCIAL YEAR.
To CREATE THE BASIS FOR THIS EMERGING GROWTH,
WE HAVE HAD TO TAKE SOME DIFFICULT DECISIONS,
THE MAY ECONOMIC STATEMENT CONTAINED SOME HARD
DECISIONS, AND THE BUDGET TO BE BROUGHT DOWN ON 23 AUGUST
WILL CONTINUE TO EXERCISE THAT FIRMNESS,
RECOVERY CANNOT BE PAINLESSLY ACHIEVED OR QUICKLY
ACHIEVED. GIVEN THAT UNEMPLOYMENT WAS EXPLODING WHEN WE CAME
TO OFFICE, IT WILL TAKE A LONG TIME EVEN TO COMPLETELY HALT
THE GROWTH OF UNEMPLOYMENT, LET ALONE ACHIEVE SIGNIFICANT
REDUCTIONS. ms. A
WHILE INFLATION SHOULD FALL SIGNIFICANTLY
OVER THE NEXT YEAR, UNLES-S MORE SUBSTANTIAL PROGRESS IS
MADEj THE CAPACITY OF MUCH OF OUR ECONOMY TO CONTRIBUTE
TO GROWTH WILL BE PUT UNDER GREAT STRAIN.
THE PROSPECTS FOR GROWTH WILL ALSO BE PUT AT
RISK UNLESS WE ENSURE THAT THE DEFICIT IS REINED IN
AS THE PRIVATE SECTOR RECOVERS.
THIS IS ESSENTIAL TO AVOID PUTTING UPWARD
PRESSURE ON INTEREST RATES AND SO WEAKENING THE PROSPECTS
FOR PRIVATE SECTOR INVESTMENT.
I WAN4T TO NOW TAKE THE OPPORTUNITY HERE IN
BRISBANE TO SPEAK ABOUT OUR POLICIES FOR GROWTH AND
EXPANSION IN A NUMBER OF KEY AREAS THAT ARE ESPECIALLY
RELEVANT TO OUEENSLANDERS.
LET ME BEGIN WITH OUR MINERALS AND ENERGY POLICIES.
OUR AIM IS TO ESTABLISH A STABLE CLIMATE FOR
LONG-TERM INVESTMENT IN THE MINING AND ENERGY INDUSTRIES.
TO THIS END THE GOVERNMENT IS MOVING TO
ESTABLISH CLEAR AND CONSISTENT POLICIES FOR THE DEVELOPMENT
OF AUSTRALIA'S MINERALS AND ENERGY RESOURCES,
WE ARE PRESENTLY REVIEWING FOREIGN INVESTMENT
POLICY IN ORDER THAT CLEAR GUIDELINES ARE AVAILABLE TO
INVESTORS -AND THE POSSIBLE BENEFITS To AUSTRALIA FROM FORE IGN
PARTICIPATION ARE MAXU'MISED. 1 / 8
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THE GOVERNMENT IS DEVELOPING A PROPOSAL FOR
A RESOURCE RENT TAX WHICH WOULD RATIONALISE THE PRESENT
COMPLEX AND ARBITRARY SYSTEM OF TAXES, ROYALTIES AND
OTHER CHARGES ON MINING AND ENERGY PROJECTS.
-WE LOOK TO CO-OPERATION WITH THE STATES AND
INDUSTRY IN DEVELOPING THIS PROPOSAL.
THE GOVERNMENT IS DETERMINED TO PROVIDE THE
FULLEST SUPPORT FOR SECURING OVERSEAS MARKETS FOR AUSTRALIA'S
RESOURCE EXPORTS. RIGHT NOW THE DEPUTY PRIME MINISTER AND MINISTER
FOR TRADE, LIONEL BOWEN, IS OVERSEAS, ENGAGED IN A SERIES
OF TALKS IN JAPAN, THE UNITED STATES AND CANADA TO SECURE
AND ENHANCE AUSTRALIA'S RESOURCE EXPORT MARKETS.
I NOW TURN TO ANOTHER MAJOR AREA OF CONCERN FOR
OUEENSLANDERS, THAT OF AGRICULTURAL TRADE.
THIS HAS A SPECIAL IMPORTANCE FOR ALL AUSTRALIANS.
AGRICULTURE. CONTRIBUTES ALMOST HALF OF OUR EXPORT EARNINGS.
WE ARE ONE OF THE PRINCIPAL SOURCES OF MANY
AGRICULTURAL COM'MODITIES ENTERING INTO WORLD TRADEPARTICULARLY
BASIC FOODS SUCH AS WHEAT, BEEF,, SHEEPMEATS
AND SUGAR. HOWEVER, WE ARE NOT IN A POSITION TO SIGNIFICANTLY
INFLUENCE PRICES, I 16/
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THE NEED FOR INTERNATIONAL CO-OPERATION BETWEEN
PRODUCING AND CONSUMING COUNTRIES IN DEALING WITH COMMODITY
TRADE PROBLEMS IS OF SPECIAL IMPORTANCE.
WITH FEW EXCEPTIONS THE PROBLEMS WHICH PERSISTENTLY
AFFECT OUR TRADE IN AGRICULTURAL COMMODITIES ARISE FROM
POLICIES AND PRACTICES OF OTHER GOVERNMENTS,
THE MOST VISIBLE OF THESE POLICIES IS THE
EUROPEAN ECONOiMIC COMMUNITY'S ( EEC) Commoti AGRICULTURAL
PO L ICY, THIS HAS DONE GREAT DAMAGE TO THE AGRICULTURAL
EXPORTS OF AUSTRALIA AS WELL AS TO OTHER MAJOR AGRICULTURAL
EXPORTERS. THE COMMON AGRICULTURAL POLICY HAS NOT ONLY
GREATLY RESTRICTED ACCESS TO WESTERN EUROPEAN MARKETS,
IT HAS ENCOURAGED A VERY SUBSTANTIAL INCREASE IN THE
INEFFICIENT PRODUCTION OF PRIMARY PRODUCTS BY THE EUROPEAN
ECONOMIC COMMUNITY VIA ELABORATE ASSISTANCE MECHANISMS WITH
SURPLUSES PUSHED OUT ONTO WORLD MARKETS AT SUBSIDISED PRICES.
THIS IN TURN HAS SEVERELY DISTORTED WORLD AGRICULTUPJ
TRADE BY DEPRESSING PRICES AND DISPLACING AUSTRALIAN AND
' OTHER EXPORTERS FROM MARKETS WHICH THEY HAVE TRADITIONALLY
SUPPLIED AND LOCKING THEM OUT OF POTENTIAL NEW MARKETS,
IN MAYJ JOHN KERIN, OUR PRIMARY INDUSTRY MINISTER,
VISITED BRUSSELS TO PRESS BEFORE THE EUROPEAN ECONOMIC
COMMUNITY THE NEED TO RESOLVE ISSUES RELATING TO
EEC SUBSIDIES ON AGRICULTURAL EXPORTS AND To REVIEW ACCESS
FOR AUSTRALIAN AGRICULTURAL PRODUCTS To EUROPE.
THE FEDERAL GOVERNMENT REGARDS THIS AS A MATTER
OF VITAL IMPORTANCE. WE MUST REINFORCE OUR EFFORTS TO ACHIEVE AN
IMPROVEMENT. THE HIGHLY EFFICIENT AUSTRALIAN SUGAR INDUSTRY
IS ONE WHICH HAS SUFFERED AS A RESULT OF UNFAIR TRADING
PRACTICES WHICH HAVE BEEN PURSUED BY THE EEC IN THE COURSE
OF SUBSIDISING ITS WAY UP FROM BEING A NET IMPORTER OF SUGR
TO THE WORLD'IS LARGEST EXPORTER.
THE SUGAR QUESTION BECAME A MAJOR FRICTION POINT
IN OUR TRADE RELATIONS WITH THE EEC, THE EEC REFUSED TO
JOIN THE PRESENT INTERNATIONAL SUGAR AGREEMENT WHICH RELIES
ON A SUPPLY MANAGEMENT MECHANISM, HAVING REGARD TO THE VAST
INCREASE IN ITS EXPORTS OF SUGAR,, THE EEC's POLICIES
FRUSTRATED THAT AGREEMENT.
WE ARE CURRENTLY PLAYING A LEADING ROLE IN THE
NEGOTIATION OF A NEW INTERNATIONAL SUGAR AGREEMENT.
Its/ ll
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AND WE AND OTHER* MAJOR EXPORTERS ARE CONSULTING
CLOSELY WITH THE EEC WITH THE AIM OF ENSURING THAT THE
EEC WILL BE A MEMBER OF THE NEW AGREEMENT
THE AIM OF SUCH A NEW AGREEMENT WOULD BE TO
INTRODUCE STABILITY INTO THE WORLD SUGAR TRADE TO THE MUTUAL
BENEFIT OF BOTH PRODUCING AND CONSUMING NATIONS.
IN AN EFFORT TO COUNTER THE EFFECTS OF THE
COMMON AGRICULTURAL POLICY, THE UNITED STATES HAS RECENTLY
RESORTED TO PROVIDING SUBSIDIES FOR EXPORTS OF PARTICULAR
AGR ICULTURAL PRODUCTS.
THIS HAS ACCENTUATED TENSIONS IN INTERNATIONAL
AGRICULTURAL TRADE,
SMALLER EXPORTING NATIONS, SUCH As AUSTRALIA,
WHICH CANNOT JOIN THE SUBSIDY AND CREDIT RACE, WOULD OF
COURSE BE THE LOSERS IF THE TWO itGANSi DO NOT EXERCISE
RESTRAINT. WE . WILL BE ENDEAVOURING TO PERSUADE THE EEC AND
THE UNITED STATES THAT SUCH A DEVELOPMENT WOULD BE TO THE
DETRIMENT OF ALL IN THE LONG TERM. / 12
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BEEF IS ANOTHER EXPORT PRODUCT OF MAJOR INTEREST
TO QUEENSLAND. IT TOO IS FEELING THE BRUNT OF OTHER COUNTRIES'
UNFAIR TRADING PRACTICES.
THE INCREASI1NG ACCESS BEING PROVIDED BY JAPAN
FOR IMPORTS OF GRAIN FED BEEF FROM' THE UNITED STATES HAS
BEEN AT THE EXPENSE-OF BEEF IMPORTS FROM OTHER SOURCES,,
PRINCIPALLY AUSTRALIA,
THE UNITED STATES HAS ASKED AUSTRALIA TO ACCEPT
VOLUNTARY RESTRAINTS ON EXPORTS OF BEEF TO THE UNITED STATES
MARKET THIS YEAR.
TO DATE THE U. S. OFFERS HAVE BEEN TOO LOW.
NEGOTIATIONS ARE CONTINUING. AUSTRALIA IS SEEKING THE BEST
POSSIBLE DEAL FOR OUR BEEF PRODUCTS.
As YOU KNOW, I HAVE RECENTLY RETURNED FROM MY
FIRST MAJOR-OVERSEAS VISIT AS PRIME MINISTER.
IREMAIN CONVINCED OF THE NEED TO ACTIVELY SUPPORT
THE NEGOTIATION OF INTERNATIONAL AGREEMENTS TO PROVIDE
GREATER AND MORE PREDICTABLE ACCESS TO OVERSEAS MARKETS FOR
OUR AGRICULTURAL COMMODITIES.
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AND I REPEAT THE COMMITMENT I MADE EARLIER THIS
YEAR THAT MY GOVERNMENT WILL WORK HARD AT THE TASK OF
DEVELOPING BILATERAL ARRANGEMENTS FOR SECURE ACCESS
FOR OUR FARM AND FISHING PRODUCTS,
QUEENSLAND HAS A SPECIAL INTEREST IN OUR RELATIONS
WITH JAPAN,. OUR LARGEST TRADING PARTNER.
OUR EXPORTS TO JAPAN IN 1982 REPRESENTED
26 PERCENT OF TOTAL EXPORTS, WHILE IMPORTS FROM JAPAN WERE
VALUED AT ALMOST $ A4.8 BILLION OR 20 PERCENT OF TOTAL IMPORTS.
MINERALS ACCOUNT FOR ABOUT HALF OUR TOTAL EXPORTS
TO JAPAN WHILE AGRICULTURAL PRODUCTS ACCOUNT FOR ANOTHER
QUARTER. FOR TWO DECADES AUSTRALIA HAS EXPERIENCED RAPID
GROWTH IN ITS E XPORT TRADE WITH JAPAN AND THIS HAS BEEN
LINKED CLOSELY WITH JAPAN'S OWN ECONOMIC GROWTH$
REGRETTABLY, WE DO NOT FORESEE THE SAME RATE OF
GROWTH CONTINUING, EXPECIALLY IN OUR RESOURCES TRADE.
WHILE OUR EXPORTS OF ENERGY AND INDUSTRIAL RAW
MATERIALS WILL REMAIN LARGE IN AB3SOLUTE TERMS, PROSPECTS
FOR FUTURE GROWTH OF EXPORTS OF THESE COMMODITIES ARE LESS
THAN GENERALLY PERCEIVED AS RECENTLY AS ONE YEAR AGO.
WE NEED TO BROADEN OUR TRADE INTERESTS IN JAPAN
BY SEEKING OUT TRADE OPPORTUNITIES IN THOSE SECTORS OF THE
JAPANESE ECONOMY WHICH ARE GROWING FAST. / 14
I BEGAN MY REMARKS BY SPEAKING OF my GOVERNMENT'S
COMMITMENT TO EXPANDING THE ECONOMY AND IDENTIFYING
ACHIEVABLE GOALS FOR THE RECONSTRUCTION OF OUR NATION.
THE GOVERNMENT IS BUT A SHORT WAY THROUGH ITS
FIRST TERM OF OFFICE BUT* ALREADY WE HAVE TAKEN SOME
IMPORTANT STEPS TOWARDS ACHIEVING THESE GOALS,
WE MUST CONTINUE TO FOCUS OUR ATTENTION ON BASIC
STRUCTURAL PROBLEMS IN OUR ECONOMY, TO TACKLE PROBLEMS OF
INFLATION AND UNEMPLOYMENT TOGETHER AND TO RESTORE OUR
COMPETITIVENESS IN A VERY COMPETITIVE WORLD&
IBELIEVE NO PREVIOUS GOVERNMENT OF AUSTRALIA HAS
IN SUCH A SHORT TIME MORE DECISIVELY ESTABLISHED ITS STANCE
IN THE FUNDAMENTAL MATTER OF NATIONAL ECONOMIC POLICY.
LET ME JUST REITERATE WHAT I SAID AT THE
CHAMBER OF COMMIERCE LAST MONDAY, BECAUSE IT REALLY DOES
SUM UP THE PURPOSE OF OUR EFFORTS OVER THE PAST FIVE CRITICAL
MONTHS IN THE HISTORY OF OUR GOVERNMENT AND THE HISTORY
OF AUSTRALIA,
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 ESTAB3LISHING THAT COMPREHENSIVE AND
INTEGRATED FRAMEWORK, WE HAVE SOUGHT TO INVOLVE, ON A
CONTINUING BASISJ THE RELEVANT SECTIONS OF THE COMMUNITYOTHER
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 WELL-BEING OF AUSTRALIA ITSELF,