CHECK AGAINST DELIVERY EMBARGOED UNTIL DELIVERY
ADDRESS BY THE PRIME MINISTER
NATIONAL PRESS CLUB
CANBERRA 5 MARCH 1986
I THANK YOU MADAM PRESIDENT, AND THROUGH YOU, THE NATIONAL
PRESS CLUB, FOR THE OPPORTUNITY ONCE AGAIN, TO REPORT TO THE
PEOPLE OF AUSTRALIA THROUGH THIS MOST IMPORTANT FORUM.
THIS IS IN EVERY WAY AN APPROPRIATE PLACE AND OCCASION TO
MARK THE THIRD ANNIVERSARY OF MY GOVERNMENT'S ELECTION IN
THE PRESENCE OF SO MANY OF YOU WHO HAVE BEEN THE CHRONICLERS
OF THOSE THREE YEARS.
AND LET ME SAY AT ONCE IN THE SPIRIT OF THE OCCASION,
MAGNANIMOUS IN VICTORY YOU HAVE CARRIED OUT THE TASK
RESPONSIBLY, OBJECTIVELY, IMPARTIALLY AND, IT ALMOST GOES
WITHOUT SAYING, WITH TOTAL ACCURACY AT ALL TIMES.
HAVING SAID THAT, LADIES AND GENTLEMEN, I NOW PROCEED TO THE
TASK IN HAND.
I
IT IS NOT MY INTENTION TO GIVE A COMPREHENSIVE CATALOGUE OF
THE ACHIEVEMENTS OF THE PAST THREE YEARS. AND I'M SURE
YOU'LL BE RELIEVED TO HEAR THAT.
FAR MORE IMPORTANT IS WHAT CAN BE ACHIEVED IN THE NEXT THREE
YEARS, AND BEYOND WHERE AUSTRALIA IS HEADING AND THE
CHALLENGES WHICH FACE US NOT CHALLENGES FOR THE GOVERNMENT
ALONE, BUT CHALLENGES FOR US ALL, AS AUSTRALIA ENTERS ITS
THIRD CENTURY.
IN ONE SENSE, THE THREE YEARS FROM 5 MARCH 1983 HAVE BEEN
FOUNDATION YEARS.
THEY HAVE NOT BEEN ONLY YEARS OF ACHIEVEMENT IN THEMSELVES,
BUT YEARS IN WHICH MY COLLEAGUES AND I HAVE TRIED TO KEEP
FIRMLY IN VIEW THE LONGER TERM RESPONSIBILITY TO BUILD FOR
AUSTRALIA'S FUTURE TO BUILD A STRONGER ECONOMY AND A
FAIRER SOCIETY.
AT THE OUTSET, THERE IS A POINT OF SUPREME IMPORTANCE WHICH
I MUST EMPHASISE. IT IS ABSOLUTELY FUNDAMENTAL TO MY
PHILOSOPHY AND FUNDAMENTAL TO THE PHILOSOPHY OF THE PARTY
AND GOVERNMENT I LEAD.
IT IS TRUE THAT FOR THE PAST THREE YEARS THE PROBLEMS OF
ECONOMIC MANAGEMENT HAVE BEEN AT THE FOREFRONT OF OUR
CONCERNS. THAT WAS INEVITABLE GIVEN OUR INHERITANCE OF AN
ECONOMY IN DEEP CRISIS ON 5 MARCH 1983.
IT IS TRUE THAT THE RESTORATION OF GROWTH AND THE CREATION
OF JOBS HAVE BEEN AMONG OUR MOST CONSPICUOUS SUCCESSES. AND
THE PURSUIT OF SOUND RESPONSIBLE ECONOMIC MANAGEMENT WILL
REMAIN DOMINANT IN OUR POLICY CONSIDERATION.
BUT I EMPHASISE THAT THE LONGER TERM OBJECTIVE OF OUR
ECONOMIIC POLICIES IS TO USE THE FRUITS OF GROWTH TO CREATE
NOT ONLY A MORE PROSPEROUS SOCIETY BUT A MORE EQUITABLE
SOCIETY.
AND THAT IS THE WIDER MEASURE BY WHICH OUR RECORD OF THE
PAST THREE YEARS AND OUR PERFORMANCE AS A LABOR GOVERNMENT
IN THE YEARS TO COME MUST ULTIMATELY BE JUDGED.
WE ARE CERTAINLY PREPARED TO BE JUDGED ON OUR ECONOMIC
MANAGEMENT AND OUR ECONOMIC ACHIEVEMENT.
WE WILL MORE THAN CHEERFULLY BE JUDGED ON OUR RECORD AND OUR
POLICIES AGAINST THE ALTERNATIVE THE DISASTERS THEY
WROUGHT AND THE DISASTERS THEY PROPOSE.
BUT THOSE ARE NOT THE ONLY STANDARDS BY WHICH WE WOULD
CHOOSE TO BE JUDGED. WE WISH ALSO TO BE JUDGED BY THE
STANDARDS OF ACHIEVEMENT WHICH OUR PHILOSOPHY, OUR
OBJECTIVES, OUR ASPIRATIONS SET FOR US AS A LABOR
GOVERNMENT. TO PUT IT IN SPORTING TERMS, WE WANT TO BE JUDGED ULTIMATELY
AGAINST OUR PERSONAL BEST THE BEST LABOR STANDARDS, THE
BEST LABOR TRADITIONS, THE BEST LABOR ASPIRATIONS.
I! HERE CAN BE NO DOUBT WHATSOEVER ABOUT THE GREATEST SINGLE
ACHIEVEMENT OF THE PAST THREE YEARS.
THREE YEARS AGO I MADE, ON BEHALF OF THE AUSTRALIAN LABOR
PARTY, A COMMITMENT TO THE CREATION OF 500,000 JOBS IN OUR
FIRST THREE YEARS. THAT WAS AS IMPORTANT AND FUNDAMENTAL AN
UNDERTAKING AS HAS EVER BEEN GIVEN BY ANY LABOR LEADER
SEEKING ELECTION.
WE HAVE IN FACT BETTERED OUR COMMITMENT. SINCE APRIL 1983,
OVER 600,000 NEW JOBS 608,300 TO BE PRECISE HAVE BEEN
CREATED IN AUSTRALIA.
AND I BELIEVE THAT'S A REAL CAUSE FOR CELEBRATION, NOT JUST
FOR A LABOR GOVERNMENT ON ITS THIRD ANNIVERSARY, BUT FOR ALL
AUSTRALIANS. BUT ALMOST AS IMPORTANT AS WHAT RAS BEEN ACHIEVED IS THE WAY
IT HAS BEEN ACHIEVED.
IT HAS NOT BEEN ACHIEVED BY SETTING OFF A NEW SPIRAL OF
INFLATION, BY GOING FOR EXCESSIVE FISCAL STIMULUS.
ON THE CONTRARY, WE HAVE MORE THAN HALVED THE BUDGET DEFICIT
BEQUEATHED TO US BY OUR PREDECESSORS AND HAVE NOW SET
INFLATION FIRMLY ON A DOWNWARD PATH, DESPITE THE SIGNIFICANT
UPWARD PRESSURES STEMMING FROM LAST YEAR'S DEPRECIATION.
WE HAVE NOT BEEN IN THE BUSINESS OF PURCHASING TEMPORARY
POLITICAL GAIN AT THE EXPENSE OF OUR LONGER TERM ECONOMIC
AND SOCIAL OBJECTIVES.
FOR US, THE CREATION OF JOBS HAS NOT ONLY BEEN A CENTRAL
OBJECTIVE OF OUR ECONOMIC POLICIES, IT IS CENTRAL TO OUR
SOCIAL OBJECTIVES OUR OBJECTIVES OF GREATER EQUITY, NOT
ONLY FOR THOSE ABLE TO TAKE PART IN THE PRODUCTIVE PROCESSES
DIRECTLY, BUT FOR THOSE OF OUR FELLOW AUSTRALIANS WHO DEPEND
UPON A COMPASSIONATE SOCIETY IF THEY ARE TO SHARE EQUITABLY
IN THE FRUITS OF GROWTH.
UNEMPLOYMENT ITSELF IS ACKNOWLEDGED AS THE SINGLE MOST
IMPORTANT CAUSE OF POVERTY IN AUSTRALIA. CLEARLY,
UNEMPLOYMENT CAN BE LOWERED PERMANENTLY ONLY THROUGH
SUSTAINED ECONOMIC GROWTH.
SIMILARLY IT IS CLEAR THAT THE CAPACITY OF SOCIETY
PROGRESSIVELY TO REDISTRIBUTE INCOME IN FAVOUR OF THE
POOREST IS GREATER IN A GROWING ECONOMY. AND ECONOMIC
GROWTH CAN BE MAXIMISED ONLY THROUGH THE PURSUIT OF ECONOMIC
EFFICIENCY. I WANT TO DISPEL UTTERLY THE ILLUSION, FOSTERED SO
ASSIDUOUSLY, AND INSIDIOUSLY IN CERTAIN QUARTERS, THAT FOR A
LABOR GOVERNMENT, THE REQUIREMENTS OF SOUND ECONOMIC
MANAGEMENT AND OUR HIGHER SOCIAL OBJECTIVES ARE
INCOMPATIBLE. THERE IS NO CONFLICT BETWEEN EFFICIENCY AND EQUITY.
ON THE CONTRARY IN TODAY'S WORLD, IN TODAY'S ECONOMY, THERE
CAN BE NO EQUITY WITHOUT EFFICIENCY.
WHILE ECONOMIC EFFICIENCY CANNOT OF ITSELF GUARANTEE GREATER
EQUITY, IT IS CERTAINLY A NECESSARY CONDITION FOR THE
CREATION OF A FAIRER SOCIETY.
IT JUST STATES PART OF OUR CASE TO SAY THAT ONLY A LABOR
GOVERNMENT POSSESSES THE WILL TO PURSUE THE TWIN GOALS OF
EFFICIENCY AND EQUITY SIMULTANEOUSLY AS WE HAVE DONE FOR
THE PAST THREE YEARS.
CERTAINLY, GREATER EQUITY, A FAIRER SOCIETY, IS NOT AND HAS
NEVER BEEN ON THE AGENDA OF OUR OPPONENTS.
BUT NEITHER IS ECONOMIC EFFICIENCY.
FOR PROOF OF THAT, YOU DO NOT HAVE TO GO BACK TO THEIR
PERFORMANCE IN THE YEARS BEFORE 1983.
THEY HAVE MADE IT CLEAR, UNDER THEIR CURRENT LEADERSHIP,
THAT THEY ARE COMMITTED TO THE ABANDONMENT OF THE VERY
CONDITIONS UPON WHICH THE ACHIEVEMENTS OF THE PAST THREE
YEARS HAVE BEEN SECURED, AND UPON WHICH THE NATION'S
PROSPECTS FOR SUSTAINED AND SUSTAINABLE GROWTH CHIEFLY REST.
A STRIKING PARADOX OF OUR AGE IS THAT THE CONSERVATIVES WHO
PROFESS SOME CONCERN FOR HISTORY APPEAR INCAPABLE OF EVER
LEARNING THE LESSONS OF HISTORY.
AND HISTORY SHOWS US CLEARLY THAT ECONOMIC PROGRESS IS
FASTEST WHEN THE COMMUNITY SHARES COMMON GOALS AND HAS
AGREED PRIORITIES.
THAT IS MOST LIKELY TO BE THE CASE WHEN ALL PARTICIPANTS ARE
SURE THAT THE FRUITS OF GROWTH ARE TO BE FAIRLY DISTRIBUTED.
FOR EXAMPLE, IT IS NOW WIDELY ACCEPTED THAT THE ECONOMIC
RECOVERIES OF THE SEVENTIES PROVED SHORT-LIVED, BECAUSE
DISPUTES OVER INCOME CLAIMS COULD ONLY BE RECONCILED AT THE
PRICE OF GROWTH-DESTROYING INFLATION.
FURTHER, IT IS ALSO PLAIN THAT PEOPLE ARE MORE WILLING TO
ACCEPT STRUCTURAL CHANGES WHICH COULD ADVERSELY AFFECT THEM
IN THE SHORT TERM, BUT WHICH ARE ULTIMATELY DIRECTED AT
PROMOTING ECONOMIC GROWTH, IF THEY BELIEVE THAT BENEFITS OF
THAT HIGHER GROWTH PERFORMANCE ARE TO BE SHARED EQUITABLY.
AND OF COURSE, OUR RECOGNITION OF THESE PRINCIPLES HAS BEEN
AT THE HEART OF OUR APPROACH FROM DAY ONE FROM THE DAY WE
SET ABOUT THE PROCESS OF NATIONAL RECONCILIATION, RECOVERY
AND RECONSTRUCTION.
IT IS AN APPROACH WHICH HAS FOUND ITS MOST EFFECTIVE
EXPRESSION IN THE ACCORD -NOT JUST THE DOCUMENT CALLED THE
PRICES AND INCOMES ACCORD -BUT IN ITS ACTUAL OPERATION.
THERE IS NOTHING MORE CURIOUS IN THE CURRENT POLITICAL SCENE
AND LET ME SAY, NOTHING MORE SPURIOUS THAN THE LINE
PEDDLED, CHIEFLY BUT NOT EXCLUSIVELY BY OUR OPPONENTS, THAT
THIS LABOR GOVERNMENT IS TOO CLOSE TO BUSINESS AND TOO CLOSE
TO THE UNIONS.
LET ME MAKE IT ABSOLUTELY CLEAR THAT I MAKE NO APOLOGY
WHATSOEVER FOR THE EXTENT TO WHICH WE HAVE BEEN ABLE TO
ESTABLISH WITH THE KEY ECONOMIC GROUPINGS IN THE COMMUNITY
AN UNPRECEDENTED LEVEL OF UNDERSTANDING ABOUT COMMON GOALS,
PRIORITIES AND PROBLEMS.
I MAKE NO APOLOGY FOR A PROCESS AND AN APPROACH THROUGH
WHICH 600,000 JOBS HAVE BEEN CREATED IN THREE YEARS.
I MAKE NO APOLOGY FOR A PROCESS WHICH HAS REDUCED INDUSTRIAL
DISPUTATION TO THE LOWEST LEVEL FOR SIXTEEN YEARS.
I MAKE NO APOLOGY FOR AN APPROACH WHICH HAS LED TO THE
RESTORATION OF THE PROFIT SHARE AND THE CORRESPONDING
DECLINE IN REAL UNIT LABOUR COSTS TO THE LEVELS OF THE LATE
1960' S AND EARLY 19701S.
I MAKE NO APOLOGY FOR THE FACT THAT OUR INTERNATIONAL
COMPETITIVENESS HAS NOW BEEN RESTORED TO THE LEVELS OF
YEARS AGO AND THAT THAT IMPROVEMENT IS EXPECTED
SUBSTANTIALLY TO BE RETAINED OVER THE LIFE OF THE ACCORD
MARK II.
AND I MAKE NO APOLOGY FOR AN APPROACH WHICH HAS CREATED
THROUGHOUT THE COMMUNITY A NEW AWARENESS AND ACCEPTANCE OF
THE NEED FOR FUNDAMENTAL RESTRUCTURING OF KEY SECTORS OF THE
AUSTRALIAN ECONOMY, NOW UNDER WAY.
AND IF CLOSENESS MEANS OUR CAPACITY TO CONSULT AND
CO-OPERATE, TO AN EXTENT UNMATCHED BY ANY PREVIOUS
AUSTRALIAN GOVERNMENT, I MAKE NO APOLOGY FOR THAT EITHER.
THIS HAS BEEN AN APPROACH WHICH IS SERVING AUSTRALIA WELL.
IT MUST CONTINUE.
AND TWO THINGS HAVE TO BE UNDERSTOOD ABOUT THE ACCORD, IN
ITS WIDEST MEANING.
FIRST, IT PROVIDES A FRAMEWORK OF CERTAINTY AND
PREDICTABILITY, YET AT THE SAME TIME IT IS FLEXIBLE ENOUGH
TO COPE WITH UNFORESEEN CHANGES IN ECONOMIC CIRCUMSTANCES.
AND SECONDLY, THE ACCORD GOES FAR BEYOND BEING A UNIQUELY
SUCCESSFUL METHOD OF INCREASING EMPLOYMENT, REDUCING
INDUSTRIAL DISPUTATION AND CONTROLLING INFLATION. IT IS A
COMPLEX OF AGREEMENTS AND UNDERSTANDINGS ABOUT ECONOMIC AND
SOCIAL GOALS FOR THIS NATION THE GOALS WHICH ARE
FUNDAMENTAL TO THIS LABOR GOVERNMENT'S VISION FOR AUSTRALIA.
BUT WE COULD NOT HAVE MOVED SO FIRMLY AND SUCCESSFULLY
TOWARDS THE ACHIEVEMENT OF THOSE GOALS IF SUPPORT FOR THEM
HAD BEEN CONFINED TO THOSE GROUPS AND INTERESTS
TRADITIONALLY DEFINED AS LABOR.
WYEN WE UNDERTOOK THREE YEARS AGO TO TURN THE ECONOMY
AROUND, LABOR PRESENTED AUSTRALIA WITH A NEW APPROACH
DESIGNED TO ENLIST THE WIDEST POSSIBLE COMMUNITY SUPPORT.
THE ACCORD WAS PART OF THE APPROACH. SO WAS THE SUMMIT.
AND LET ME REMIND YOU THAT THE SUMMIT COMMUNIQUE REPRESENTED
WIDE AGREEMENT ON SOCIAL AS WELL AS ECONOMIC GOALS.
MANY COMMENTATORS WERE SCEPTICAL OF OUR APPROACH.
NOW OF COURSE NOBODY HERE WAS AMONG THE RANKS OF THE CYNICS.
IN PARTICULAR THERE WERE THOSE WHO WERE SCEPTICAL ABOUT THE
ABILITY OF THE ACCORD TO ENDURE AND TO SECURE SUSTAINED
GROWTH WITHOUT A RE-EMERGENCE OF UNCONTROLLED INFLATION.
THE RECORD SPEAKS FOR ITSELF. IT REPRESENTS A SUBSTANTIAL
DOWNPAYMENT ON OUR PROMISE TO DELIVER LONG-TERM GROWTH. BUT
A DOWNPAYMENT IS NOT ENOUGH. WE HAVE SET ABOUT CASTING
ASIDE THE MANY OBSTACLES TO GROWTH LEFT ALONG THE TRACK BY
PREVIOUS COALITION GOVERNMENTS.
WE HAVE ENCOURAGED INDUSTRY AND COMMERCE TO BECOME MORE
ROBUST AND INTERNATIONALLY COMPETITIVE, MORE
EXPORT-ORIENTED, MORE WILLING TO SEEK OUT MARKET
OPPORTUNITIES, MORE READY TO TAKE ADVANTAGE OF DEVELOPMENTS
IN TECHNOLOGY AND MODERN BUSINESS PRACTICE, AND LESS RELIANT
ON GOVERNMENT ASSISTANCE AND INTERVENTION.
WAGE RESTRAINT THROUGH THE ACCORD, STRONG PRODUCTIVITY
GROWTH, AND THE SIGNIFICANT DEPRECIATION OF THE AUSTRALIAN
DOLLAR IN 1985, HAVE MADE OUR MANUFACTURING INDUSTRIES MORE
INTERNATIONALLY COMPETITIVE THAN THEY HAVE BEEN FOR AT LEAST
FIFTEEN YEARS.
AND IT IS HEARTENING TO SEE THAT THE MANUFACTURING SECTOR IS
RESPONDING TO THAT OPPORTUNITY. THERE IS FIRM EVIDENCE OF
INCREASING MANUFACTURING INVESTMENT AND RISING PRODUCTIVITY,
TOGETHER WITH GREATER TECHNOLOGICAL AWARENESS, AND A MORE
CO-OPERATIVE APPROACH BETWEEN EMPLOYERS, UNIONS AND
GOVERNMENT. THE GOVERNMENT'S CAREFULLY CO-ORDINATED, WIDE-RANGING
PROGRAM OF POLICY INITIATIVES FOR AUSTRALIAN INDUSTRY HAS
CONTRIBUTED IMPORTANTLY TO THIS NEW-FOUND VIGOUR.
IN PARTICULAR, THE GOVERNMENT HAS ESTABLISHED SPECIAL
SECTORAL PLANS FOR ADDRESSING THE PROBLEMS FACING CERTAIN
LARGE AND PREVIOUSLY AILING INDUSTRIES SUCH AS STEEL AND
MOTOR VEHICLES.
AND WE HAVE PROMOTED AN UPGRADING OF THE TECHNOLOGICAL
CAPACITY OF MANUFACTURING INDUSTRY BY BRINGING ABOUT A
SUBSTANTIAL INCREASE IN THE R D EFFORT OF PRIVATE
INDUSTRY, BETTER LINKING INDUSTRY TO THE PUBLIC RESEARCH
INSTITUTIONS, AND PROVIDING A BETTER BASIS FOR NEW PRODUCTS,
PROCESSES AND ENTERPRISES UPON WHICH FUTURE GROWTH DEPENDS.
I1 ADDITION WE HAVE ALREADY TAKEN SUBSTANTIAL STEPS TO
REMOVE UNNECESSARY OR OUTMODED REGULATIONS AND RESTRICTIONS
ESPECIALLY, BUT NOT EXCLUSIVELY, IN THE FINANCIAL SECTOR.
IN EACH CASE OUR OBJECTIVE HAS BEEN TO SECURE FOR AUSTRALIA
AN ENVIRONMENT WHICH WILL PERMIT AND ENCOURAGE EFFICIENT,
COMPETITIVE AUSTRALIAN INDUSTRIES TO CONTRIBUTE THEIR FULL
POTENTIAL TO INCREASING AND SUSTAINING ECONOMIC GROWTH IN
AUSTRALIA. THE SAME APPROACH HAS CHARACTERISED THE GOVERNMENT'S
RESPONSE TO THE DIFFICULTIES FACED BY THE RURAL SECTOR.
WE ARE SEEKING DOMESTICALLY TO MITIGATE THE IMPACT OF
ESCALATING FARM COSTS ON OUR RURAL PRODUCERS. THE RECENT
GOVERNMENT DECISION ON FUEL COSTS IS EVIDENCE OF THIS.
WE HAVE SOUGHT AT THE SAME TIME TO PROMOTE MORE EFFICIENT
M4ARKETING AND PRODUCTION PRACTICES WITHIN THE RURAL SECTOR.
THE REFORMS WE HAVE INTRODUCED IN PRIMARY INDUSTRY STATUTORY
M4ARKETING AUTHORITIES, AND THE PLANS WE HAVE DEVELOPED FOR
THE DAIRY AND SUGAR INDUSTRIES, TESTIFY TO OUR COMMITMENT TO
SEEING AUSTRALIAN RURAL INDUSTRIES SURVIVE AND PROSPER.
FINALLY, WE ARE WORKING TO SECURE A REVERSAL OF THE POLICIES
OF OTHERS, WHICH ARE CORRUPTING INTERNATIONAL MARKETS.
DURING THE PERIOD WE HAVE BEEN IN OFFICE WE HAVE
CONSISTENTLY MADE CLEAR TO THE EEC OUR CONCERN ABOUT THE
DISASTROUS EFFECTS OF ITS COMMON AGRICULTURAL POLICY ON
WORLD TRADE IN AGRICULTURAL COMMODITIES. MORE RECENTLY WE
HAVE EXPRESSED OUR CONCERN TO SENIOR MEMBERS OF THE UNITED
STATES ADMINISTRATION AND CONGRESS ABOUT THE FURTHER ADVERSE
CONSEQUENCES FOR OUR RURAL PRODUCERS OF THEIR EXPORT
ENHANCEMENT PROGRAM.
IN EACH CASE THE GOVERNMENT HAS NOT HESITATED TO PUT ITS
VIEWS STRONGLY TO THE EEC AND THE UNITED STATES BECAUSE,
DESPITE OUR CLOSE FOREIGN POLICY AND HISTORICAL TIES WITH
THESE COUNTRIES, WE WILL NOT STAND IDLY BY WHILE THEIR
AGRICULTURAL POLICIES AND PROGRAMS DAMAGE OUR VITAL RURAL
SECTOR. I AM, THEREFORE, PLEASED TO ANNOUNCE TODAY THAT I HAVE
RECEIVED A POSITIVE RESPONSE FROM PRESIDENT REAGAN FOR AN
EARLY MEETING WITH HIM AND WITH OTHER SENIOR MEMBERS OF HIS
ADMINISTRATION. THEY HAVE SUGGESTED, AND WE HAVE AGREED,
THAT THESE MEETINGS SHOULD TAKE PLACE ON 17 APRIL. ON THIS
VISIT I WOULD ALSO EXPECT TO MEET WITH SENIOR CONGRESSIONAL
LEADERS. THESE MEETINGS IN WASHINGTON WILL DISCUSS WAYS OF ENSURING
THAT THE EXPORT ENHANCEMENT PROGRAM DOES NOT HAVE A NEGATIVE
IMPACT ON OUR RURAL SECTOR, AND HOW BEST TO PROMOTE A MORE
RATIONAL INTERNATIONAL TRADING SYSTEM IN AGRICULTURAL
PRODUCTS AT THE FORTHCOMING ECONOMIC SUMMIT OF THE HEADS OF
GOVERNMENT OF THE LEADING INDUSTRIALISED COUNTRIES.
14ADIES AND GENTLEMEN
AT THIS POINT I WISH TO REVERT TO MY BASIC THEME AND TO
EMPHASISE AGAIN THAT FOR THIS LABOR GOVERNMENT THE GOALS OF
GREATER EFFICIENCY AND GREATER EQUITY ARE INDISSOLUBLY
LINKED.
CENTRAL TO OUR POLICIES IS THE UNDERSTANDING THAT ONLY A
GROWING ECONOMY CAN FULFILL THE LEGITIMATE ASPIRATIONS OF
ALL AUSTRALIANS ENGAGED IN PRODUCTIVE ACTIVITY TO IMPROVED
LIVING STANDARDS AND A BETTER QUALITY OF LIFE.
BUT IT IS EQUALLY TRUE THAT AN EXPANDING ECONOMY CAN BEST
PROVIDE THE OPPORTUNITIES TO SATISFY ASPIRATIONS OF
AUSTRALIANS TO CARE FOR THE NEEDY AND THOSE LESS ABLE TO
CARE FOR THEMSELVES.
OUR WELFARE INITIATIVES HAVE CONCENTRATED ON THOSE IN
GREATEST NEED THE UNEMPLOYED, LOW INCOME FAMILIES WITH
CHILDREN AND SOCIAL SECURITY BENEFICIARIES RENTING
PRIVATELY. INDEED THE IMPACT OF THESE INITIATIVES HAS BEEN TO INCREASE
THE REAL DISPOSABLE INCOME OF PEOPLE ON SOCIAL SECURITY BY
UP To 20 PER CENT SINCE 1983. DESPITE THE SHARP DROP IN
THEIR REAL INCOMES IN THE YEARS 1976-77 TO 1982-83, ALMOST
EVERYONE ON A FULL PENSION NOW HAS A HIGHER DISPOSABLE
INCOME THAN THEY DID A DECADE AGO, SOME BY UP TO 10 PER
CENT. A MORE GENERAL INDICATOR OF OUR WILLINGNESS TO RE-ORDER
PRIORITIES TO ASSIST THE NEEDY IS THE FACT THAT THE SHARE OF
COMMONWEALTH OUTLAYS ( EXCLUDING PUBLIC DEBT INTEREST)
DIRECTED TO HEALTH, WELFARE AND HOUSING HAS RISEN STEADILY
IN EACH OF OUR BUDGETS, AND IS NOW OVER 3 PERCENTAGE POINTS
HIGHER THAN IN THE 1982-83 BUDGET.
THE SWEEPING TAXATION REFORMS WE HAVE ANNOUNCED WILL ENHANCE
SOCIAL EQUITY THROUGH THE MEASURES TO REDUCE POVERTY TRAPS
AND THROUGH THE CLOSURE OF TAX SHELTERS. AND THE REFORMS
WILL CONTRIBUTE TO GROWTH BY PROVIDING GREATER INCENTIVE TO
UNDERTAKE PRODUCTIVE WORK.
OUR POLICIES IN THE CRITICAL FIELD OF EDUCATION ARE DIRECTED
TO IMPROVING THE QUALITY AND RELEVANCE OF EDUCATION,
ENSURING EQUALITY OF OPPORTUNITY AND ENCOURAGING STUDENTS TO
REMAIN LONGER IN EDUCATION AND TRAINING.
WE HAVE DONE SO IN RECOGNITION NOT ONLY OF THE MAJOR
ECONOMIC BENEFITS WHICH WOULD FLOW-FROM A MORE ADAPTABLE,
MORE HIGHLY SKILLED WORKFORCE BUT ALSO-IN RECOGNITION OF THE
INESTIMABLE VALUE TO INDIVIDUAL STUDENTS OF A MORE RELEVANT
EDUCATION. INDEED, A HIGH PRIORITY HAS BEEN ACCORDED TO INTRODUCING A
PHASED PROGRAM TO RATIONALISE AND ENHANCE YOUTH INCOME
SUPPORT ARRANGEMENTS TO ENSURE THAT OUR YOUNG PEOPLE HAVE
MORE INCENTIVE TO CONTINUE IN EDUCATION RATHER THAN OPT OUT
INFO. UNEMPLOYMENT.
THIS WAS PART OF A PACKAGE OF INTEGRATED MEASURES
IMPLEMENTED IN THE 1985-86 BUDGET PRIORITY ONE THAT
ESTABLISHED FOR THE FIRST TIME, A COHERENT SET OF POLICIES
AND PROGRAMS TO PROVIDE GREATLY ENHANCED OPPORTUNITIES FOR
YOUNG PEOPLE TO CONTINUE EDUCATION, TO ACQUIRE SKILLS AND TO
UNDERTAKE PRODUCTIVE EMPLOYMENT.
A CENTRAL ELEMENT OF PRIORITY ONE IS THE TRAINEESHIP SCHEME
WHICH WILL PROVIDE YOUNG PEOPLE WITH A MAJOR IMPROVEMENT IN
VOCATIONAL TRAINING OPPORTUNITIES AND ESPECIALLY IN THEIR
TRANSITION FROM SCHOOL TO WORK.
AND LET ME HERE MAKE THIS POINT AN ESSENTIAL ELEMENT IN
THE WORKING OF PRIORITY ONE IS THE NEED FOR UNIONS,
EMPLOYERS AND THE YOUNG PEOPLE THEMSELVES TO GET BEHIND
IT. IT IS A SPECIFIC EXAMPLE OF THE WAY IN WHICH IN THE
FINAL ANALYSIS, THE FULL SUCCESS OF OUR ECONOMIC AND SOCIAL
INITIATIVES REQUIRES COMMUNITY SUPPORT AND C0OMUNITY
CO-OPERATION, IN THE SPIRIT OF THE ACCORD ITSELF.
LADIES AND GENTLEMEN.
A BALANCED ACCOUNT OF THE PAST THREE YEARS MUST, OF COURSE,
INCLUDE REFERENCE TO AUSTRALIA'S ENHANCED INTERNATIONAL
STANDING AS REFLECTED IN THE RECORD VOTE WE RECEIVED IN
1984 FOR OUR MEMBERSHIP OF THE UNITED NATIONS SECURITY
COUNCIL. WE HAVE TAKEN AS OUR GUIDING PRINCIPLES THE
IMPERATIVE OF AUSTRALIA'S INDEPENDENCE AND NATIONAL
SECURITY; THE ASPIRATIONS OF THE AUSTRALIAN PEOPLE TO LIVE
IN A WORLD FREE OF THE THREAT OF NUCLEAR WAR; AND THE
STRATEGIC AND ECONOMIC FACTS OF AUSTRALIA'S POSITION IN THE
ASIA-PACIFIC REGION.
FACED BY THE DIFFICULTIES IN THE RELATIONSHIP BETWEEN THE
UNITED STATES AND NEW ZEALAND, WE HAVE WORKED SUCCESSFULLY
TO ENSURE THE CONTINUING STRENGTH OF OUR SECURITY
ARRANGEMENTS WITH THE UNITED STATES UNDER ANZUS. AT THE
SAME TIME, WE HAVE STRIVEN TO ENSURE THAT OUR CLOSE
RELATIONSHIPS WITH NEW ZEALAND, INCLUDING THE DEFENCE
RELATIONSHIP, IS IN NO WAY DIMINISHED.
WE WILL CONTINUE TO MAKE WHATEVER CONSTRUCTIVE CONTRIBUTION
WE CAN TO ENCOURAGE THE RESTORATION OF TRILATERAL
CO-OPERATION UNDER ANZUS, AND AT ALL EVENTS TO ENSURE THAT
OUR TWO-WAY COMMITMENTS TO AND WITH THE UNITED STATES REMAIN
FULLY OPERABLE AND IN FORCE.
AUSTRALIA SHARED WITH MOST OTHER COUNTRIES AROUND THE WORLD
A GREAT SENSE OF RELIEF WHEN THE SUPER-POWERS RESUMED
SERIOUS NEGOTIATIONS ON ARMS CONTROL AND DISARMAMENT. WE
SHOULD NOT, HOWEVER, UNDERESTIMATE THE DIFFICULTIES WHICH
LIE ON THE PATH TO AGREEMENT. NOR SHALL WE IN ANY WAY RELAX
OUR OWN EFFORTS IN THIS AREA.
OUR MAJOR ACHIEVEMENT IN THE ARMS CONTROL AREA IS OUR
INITIATIVE TO DEVELOP THROUGH THE SOUTH PACIFIC FORUM THE
SOUTH PACIFIC NUCLEAR FREE ZONE TREATY. THE CONCLUSION OF
TIHE TREATY SIGNALS OUR DETERMINATION TO DO WHATEVER WE CAN
IN THE FIELD OF ARMS CONTROL. IT ALSO EXEMPLIFIES THE
PRIORITY WHICH WE HAVE GIVEN TO AUSTRALIA'S OWN PART OF THE
WORLD, THE ASIA-PACIFIC REGION.
FROM THE OUTSET OF ITS TIME IN OFFICE, THE GOVERNMENT HAS
INVESTED THE HIGHEST POSSIBLE ENERGY AND RESOURCES TO THE
DEVELOPMENT OF AUSTRALIA'S RELATIONS WITH ALL ITS
NEIGHBOURS. THE FRUITS OF THESE EFFORTS CAN BE SEEN IN MANY
WAYS. I WOULD MENTION ONLY ON THIS OCCASION THE CONSTRUCTIVE
DISCUSSIONS WHICH BILL HAYDEN HAS JUST HAD WITH INDONESIA
LEADERS ON A NUMBER OF SUBJECTS, INCLUDING THE SEA BED
BOUNDARY; THE DEVELOPMENT OF A COMPREHENSIVE RELATIONSHIP
W4ITH CHINA, WHICH I LOOK FORWARD TO VISITING AGAIN IN MAY;
AND OUR RESPONSE TO THE DEVELOPING SITUATION IN THE
PHILIPPINES, AS A RESULT OF WHICH I WOULD SUGGEST THAT NO
COUNTRY IS BETTER PLACED THAN AUSTRALIA TO ESTABLISH A
CO-OPERATIVE RELATIONSHIP WITH THE GOVERNMENT OF PRESIDENT
AQUINO. LADIES AND GENTLEMEN,
IN THIS NECESSARILY VERY GENERAL ACCOUNT OF THE PAST THREE
YEARS I HAVE TRIED TO PLACE OUR ACHIEVEMENTS FIRMLY IN THE
CONTEXT OF OUR GOALS OF GREATER EFFICIENCY AND GREATER
EQUITY.
THIS DISCUSSION OF OUR ACHIEVEMENTS IS NOT TO DENY THAT IN
M4ANY RESPECTS THE KEY ECONOMIC DECISIONS WE MUST NOW MAKE
ARE MORE DIFFICULT AND COMPLEX THAN THOSE THAT FACED THE
GOVERNMENT IN 1983.
THE IMMEDIATE GOALS OF A GOVERNMENT ELECTED, AS WE WERE, TO
DEAL WITH THE WORST ECONOMIC CRISIS FOR FIFTY YEARS, WERE
RELATIVELY SIMPLE, ALTHOUGH THERE WAS CERTAINLY NOTHING
SIMPLE OR EASY-ABOUT THE MEANS BY WHICH THAT CRISIS COULD BE
BROUGHT TO AN END AND SUSTAINED RECOVERY COULD BE ACHIEVED.
IN A SENSE, THE DIFFICULT ECONOMIC ISSUES WE MUST NOW
ADDRESS ARE IN FACT THE PRICE WE PAY FOR THE VERY SUCCESS OF
OUR POLICIES, AND THE STRENGTH OF THE GROWTH THAT HAS BEEN
ACHIEVED IN THE ECONOMY.
IN ADDRESSING THESE ISSUES WE MUST ACCEPT THAT THE WORLD
DOES NOT OWE US A LIVING. WE CANNOT EXPECT TO RAISE
AUSTRALIA'S LIVING STANDARDS JUST BY CALLING TO AN EVER
GROWING EXTENT ON THE WORLD'S SAVINGS.
AUSTRALIA MUST TO BE PREPARED TO LOOK CLOSELY AT ITS
INDUSTRIAL STRUCTURES AND BE PREPARED TO EMBRACE CHANGES
WHICH WILL INCREASE OUR POTENTIAL TO COMPETE.
WE NEED TO BE PREPARED TO UNDERTAKE THE INVESTMENT NECESSARY
TO LIFT OUR PRODUCTIVITY AND PRODUCE GOODS AND SERVICES OF
THE KIND AND QUALITY WHICH IS DEMANDED IN WORLD TRADE.
INCREASINGLY SUCH DECISIONS ARE LIKELY TO REQUIRE A
WILLINGNESS ON OUR PART TO EXAMINE CLOSELY WHERE OUR
COMPARATIVE ADVANTAGE LIES IN WORLD TRADE, AND TO SEEK TO
SHIFT RESOURCES OUT OF AREAS WHERE OUR ADVANTAGES ARE LEAST
INTO THOSE AREAS WHICH WILL MAXIMIZE OUR CHANCES TO SELL IN
OUR REGION.
AND, NOW AS MUCH AS ANYTIME IN THE PAST THREE YEARS,
AUSTRALIA NEEDS THE SAME HIGH QUALITY OF ECONOMIC
DECISION-MAKING, AND THE SAME COMMITMENT TO FISCAL AND
MONETARY DISCIPLINE, AND THE SAME ACCORD-BASED APPROACH TO
INCOMES POLICY TO ENSURE NON-INFLATIONARY LONG-TERM GROWTH
AS HAS SERVED US SO WELL OVER THE PAST THREE YEARS.
WE WILL-NOT BE DIVERTED FROM OUR TASK OF RESPONSIBLE
MACROECONOMIC MANAGEMENT. OUR INCOMES POLICY HAS BEEN
SECURED FOR A FURTHER TWO YEARS. OUR COMMITMENT TO THE
TRILOGY OF FISCAL RESPONSIBILITY IS FIRM. AND OUR MONETARY
POLICY WILL BE FIRM BUT ACCOMMODATING TO A RATE OF ECONOMIC
GROWTH WHICH IS CONSISTENT WITH LOW INFLATION.
WE WILL CONTINUE TO REMOVE PROGRESSIVELY THE REMAINING
OBSTACLES TO GROWTH AT A PACE WHICH CAN BALANCE THE
COMPETING [ NTERESTS OF THOSE DIRECTLY AFFECTED.
THERE CAN BE NO DOUBT THAT THE MONTHS IMMEDIATELY AHEAD WILL
CALL FOR CAREFUL, DIFFICULT AND SOMETIMES TOUGH DECISIONS.
THOSE DECISIONS WILL REFLECT OUR CONTINUING COMMITMENT TO
THE ACHIEVEMENT OF SOCIAL PROGRESS, REFORM AND EQUITY
THROUGH SUSTAINABLE ECONOMIC GROWTH. IN THE FINAL ANALYSIS,
THOSE DECISIONS ARE THE ULTIMATE AND INESCAPABLE
RESPONSIBILITY OF THE ELECTED GOVERNMENT OF AUSTRALIA. WE
ACCEPT THAT RESPONSIBILITY UNRESERVEDLY.
YET, JUST AS THE SUCCESS OF THE PAST THREE YEARS COULD NOT
HAVE BEEN ACHIEVED WITHOUT THE WORK AND CO-OPERATION OF ALL
SECTIONS OF THE AUSTRALIAN COMMUNITY, AND JUST AS THOSE
ACHIEVEMENTS ARE, IN A VERY REAL SENSE, THE ACHIEVEMENTS OF
THE AUSTRALIAN PEOPLE, SO IN THE YEARS AHEAD OUR SUCCESS AS
A NATION WILL BE A SHARED RESPONSIBILITY.
SUCCESS IS NOT AUTOMATICALLY GUARANTEED TO ANY NATION, EVEN
ONE SO FUNDAMENTALLY FORTUNATE AS OURS. NOW MORE THAN EVER,
IT IS SOMETHING THAT HAS TO BE WORKED AT AND WORKED FOR,
UNREMITTINGLY NOT ONLY BY GOVERNMENTS, BUT BY THE WHOLE
COMMUNITY. I AM PROUD TO BE AT THE HEAD OF SUCH A GOVERNMENT, AS I AM
IMMENSELY PROUD TO BE AT THE HEAD OF SUCH A PEOPLE AND SUCH
A NATION DURING THESE THREE GREAT YEARS AND THE EVEN
GREATER YEARS OF ACHIEVEMENT FOR AUSTRALIA TO COME.
YET LET ME SAY THIS IN CONCLUSION: THE THREE YEARS DURING
WHICH I HAVE HAD THIS HIGHEST OF PRIVILEGES OF LEADING THIS
GREAT COUNTRY HAVE CONFIRMED, MONTH BY MONTH AND YEAR BY
YEAR, MY DEEPEST CONVICTION THAT IF THE SUCCESS WE ALL SO
DEEPLY DESIRE FOR OUR COUNTRY IS TO BE SECURED FOR THIS AND
FUTURE GENERATIONS, THEN IT WILL BE ONLY UNDER THE
LEADERSHIP OF A LABOR GOVERNMENT, ACTING ON TRUE LABOR
PRINCIPLES IN THE AUTHENTIC LABOR TRADITION.