ADDRESS TO THE NATION ON THE ECONOMIC SITUATION
THE HON. R. J. L. HAWKE, AC, MP
CANBERRA 11 JUNE 1986
Good evening,
As a nation we now have to do some tough and challenging
things together. I want to tell you
why we must do them,
what some of those-things are,
why we will overcome the challenge facing us as a
nation.
Let me first put the position as concisely as possible:
Our exports of commodities such as wool, wheat, coal and
iron ore have, for a long time, been a major source of our
national income.
While the prices we pay for our imports have continued to
rise, the prices we get for these exports have for a
considerable period been gradually, and now dramatically,
declining. This most recent turnaround in the terms of trade has
slashed three per cent off our capacity to maintain existing
living standards.
The plight of the farmers and other exporters is not
something for them alone to bear it must mean restraint
for all of us.
The reality is that the outside world is paying us less
our standards must adjust accordingly.
As a consequence;
we have, for the time being, to accept reduced standards
of living and, permanently, increased standards of
effort, we have, in the past three years, shown that we could,
by working together, meet and overcome the economic
crisis that confronted our country. A different crisis
the same people we can do it again.
I now go to more detail.
WHAT IS REQUIRED
We must obtain a lower wage outcome than anticipated when
the Accord was renegotiated last September.
The delay in the present case will, to some extent, produce
this result.
More is required.
The 2.3 per cent which should flow from this case should be
the only national wage increase in 1986.
We believe now it will be necessary to argue for a further
discount in the following case.
And under the processes of the Accord we will be conveying
that position to the ACTU.
In these circumstances we believe that the Conciliation and
Arbitration Commission should make a positive finding on the
productivity/ superannuation case.
It should, however, under its control, prolong the
implementation of the decision over a period of some two
years. Other non-wage remuneration executive salaries, directors'
fees and professional incomes must be correspondingly
restrained. I have been given such assurances by the
relevant national business and professional organisations.
[ 6~ We will be monitoring such compliance and will expect the
States to do the same.
The community will rightly expect the business sector to
keep price increases to a minimum. We will meet any
requests from the Prices Surveillance Authority that improve
the effectiveness of its operation.
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While we have reduced our inherited inflation rate we must
get closer to those of our major trading partners.
The Governments of Australia must themselves exercise more
restraint. It's your money that we use for your collective
purposes and welfare and we will all have to set our 0
sights a little lower.
This will mean some tough decisions in the Budget. We have,
in the Budget process so far, identified savings of more
than $ 1 billion.
It will mean some tough decisions at the Premiers'
Conference later this week.
These decisions will be taken.
The tax cuts we have promised will be delivered as close as
possible to September and certainly by Ist December 1986.
In this context, I wish to report on two other decisions we
have now taken.
First, while society has a responsibility to the unemployed,
this is a two-way process. The time has come, we believe,
when this two-way responsibility will best be served by
providing as far as possible the opportunity, particularly
for the younger recipients of unemployment benefit, to
undertake some community work in return for that benefit. I
know from my experience with Priority One that this is the
overwhelming view of our young people themselves. U
Accordingly, we will be seeking, in co-operation with the
States, local governments, community organisations and trade
unions, to create the framework for progressively achieving
this objective.
Second, under successive Governments, including my own, the
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federal public service has continued, inexorably, to grow in
numbers. While a good public service is essential to the well-being
of our society, an increasingly efficient public service
does not mean an increasingly large public service.
Among the steps we will take will be a streamlining and
rationalisation of some existing functions and agencies.
Because of entrenched practices that have grown up over
generations these steps cannot produce overall dramatic,
immediate results. But they begin to reverse the trend
and to produce a leaner, more efficient public service.
The measures I mention, and indeed the indications of the
broader approach in the detailed Government statement
released tonight, are to be seen as part of our recognition
that the problems with which we are dealing are more than
immediate they are long term and need long term solutions.
We must strive to broaden and deepen our export and
import-competing base. I II I II
To this end, there are things the Government, industry and
you can do. In the statement there are details of
particular new decisions by government calculated to assist
industry towards this objective. Australian management,
with the co-operation of the workforce, must by increased
investment and other initiatives pick up this challenge.
And we, the Australian public, must. support Australian
industry. We will be launching a campaign urging all
Australians to buy Australian products whenever they can.
As Australians we take enormous and obvious delight in the
achievements of international excellence by our fellow
countrymen and women. Just think of Robert de Castella,
Joan Sutherland, Ben Lexcen and John Bertrand.
I want us to get the same sense of shared pride when an
Australian manufacturing or services firm wins a contract
against the best international competition and let me
assure you they can do it, they are doing it.
It requires the same elements as have brought Deek, Joan,
Ben and John to the top
confidence in yourselves, your product and those around
you, readiness to work with great application and dedication,
eagerness to use the best available advice and
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preparedness to forego present satisfaction for greater
long term reward,
total commitment.
We have hundreds of potential de Castellas, Sutherlands, 0
Lexcens and Bertrands out there in our manufacturing and
service industries applying the' same principles we can get
the same results.
Finally, X want to tell you why we can, why we will together
meet and overcome this challenge.
In 1983, when I first spoke to you as Prime Minister about
the economy, we were in the midst of our most serious
economic crisis for 50 years.
Three years later the picture has changed dramatically.
We've had high economic growth, record employment growth
almost 700,000 jobs, profits are up, industrial disputes are
down. The challenge now confronting us is no less daunting than
the one we faced successfully together in 1983.
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We have the same elements for success great resources, a
Government prepared to make the hard decisions and a great
people with guts and a preparedness by all sectors to pull
together to make present sacrifices for future, substantial
and sustainable rewards.
I give you ny pledge my Government, your Government will
again make the decisions necessary t6 meet this challenge.
I will not shirk the hard decisions that are necessary to
ensure a bright future for us and for our children.
I would rather risk electoral defeat than take the soft
options now that would mean we mortgage that great future.
My faith in you to take up this challenge is undiminished
it is unqualified.
Together Australia Australians together will meet and
overcome the challenge before us.