C0
PRIME MINISTER
CHECK AGAINST DELIVERY EMBARGOED UNTIL DELIVERY
SPEECH BY THE PRIME MINISTER
1988 BICENTENNIAL EXPORT AWARDS
BRISBANE 15 OCTOBER 1988
Let me at the outset, on behalf of everyone here tonight,
congratulate the organisers of the Bicentennial Export
Awards. This occasion is important not only because it recognise.
the achievements of successful Australian exporters, but
also because it reinforces in the minds of all Australians
the need to strive to make our economy a more active and
competitive international player.
AS all here will fully'appreciate, Australia has
traditionally relied on exports of minerals and agricultural
goods to maintain its standard of living.
tFoo r cognrtoiwntuhe , i nw el imvuisntg csotnatnidnaured s doawnnd tehmep lopaytmhe nto f oprpeosrttruuncittuireisnag
our economy by broadening our export base.
The need for a major economic restructuring became starkly
evident with the collapse in world commodity prices in
1985/ 86. That slump not only demonstrated Australia's
vulnerability to sharp movements in commodity prices, it
revealed how ill-prepared Australian manufacturing and
service industries were to take advantage of the
depreciation of the Australian currency. This inflexibility
Was due to the highly protective tariff barriers that had
sheltered manufacturing industry and inefficiencies in
public and private sector service activities that-had long
gone unchallenged.
Action across the spectrum of Government policy and changes
in attitude by Australians generally have been required. it
is with great pride that I am able to say that we have
provided such action and, as I announced only this week, we
1 are determined to continue the work.
We have encouraged manufacturers to face the challenges and
opportunities of interna tional competition by gradually
reducing barrier protection. The tariff reductions
announced in the may Economic Statement will result in the
greatest reduction in domestic trade barriers since the
per cent across-the-board reduction in 1973. 267.9
Land
craf t
-1 the
PIRB those
-inday
ce in
He Gayi
We have also undertaken the most comprehensive reform of the ext
micro-economy attempted by an Australian Government in 40 mak
years. we are moving to eliminate inefficiencies and to
improve competitiveness because through such reforms liesTh
the promise of improved prosperity for all Australians. be
AS part of this process the Government has introduced mill
significant reforms in the domestic aviation and liner abtt
shipping sectors. AS well as those, there have been the coo
reforms in the primary industry and telecommunications ni c
sectors, and in Government business enterprises. We
Of particular interest and concern to you as exporters is ele'
reform of the waterfront, reform that is necessary to make par
Australia truly competitive and export oriented. abo
I would like tonight briefly to recount what I said on this i
subject to the Business Council of Australia. corn
From the Commonwealth's perspective, there are two basicin
areas which must be addressed. we need an appropriate
incentive structure and competition amongst stevedoring
companies to encourage a greater level of productivity. And
we need a positive attitude from port authorities, both in
reducing the costs they impose on exporters and importers,
and in encouraging a competitive use of port infrastructure.
Port authorities are the principal Government bodies on the
waterfront. While there have, very recently, been
significant statements by port authorities on the need'for
them to encourage greater competition on th'e waterfront,.
there have been few specific initiatives.
State Governments need to ensure that the ports do not' it
burden users with outdated work practices, nor charge for AwF
costs which are unjustifiable. clc
The Commonwealth's recent reforms to its own business shF
enterprises provide a lead. set
In a further move to reduce the overall regulatory burden on
business, I announced that the Government had dec idad to
adopt a requests and response procedure to review existing
regulation.
our overall policy approach has received widespread support. As;
For example, during a visit to Australia in may this year, exI
the Managing Director of the International Monetary Fund, Mr mat
Michel Camdessus, stated: As;
think the world has a good deal to learn from what o
is taking place in Australia now." Thi
He went on to state that: th: Au:
Ido admire the way in which the economic strategy ont
has been conceived and implemented." h
2676
He made particular mention of the Accord between the
Government and the trade union movement as having added an
extra dimension to the traditional tools of economic policy
making. The constructive attitudes which underpin the Accord have
been directly responsible for the creation of more than 1.1
million jobs since 1983. They have also been replicated in
a broader, economy-wide sense and this expansion of the
cooperative spirit has greatly facilitated reform of the
micro-economy.
We place heavy emphasis on consultation as an integral
element of reform as a means of ensuring that those
parties affected by reform are involved in it, and informed
about it.
It is encouraging to note the commitment with which
companies are meeting the economic challenges of an
increasingly deregulated environment:
The c-ntribution of manufacturing and services ( notably
tourism) to export earnings has increased
manufactured exports as a percentage of total
exports have increased from 21 per cent in 1984-85
: to more than 26 per cent in 1987-88
-Over the sa;.. e period, tourism earnings increased
from 4 per cent to 6 per cent of goods and services
exports.
It is also qratifying to note that these Bicentennial Export
Awards attracted a record number of applicants.
Clearly Australia has the potential to capture a larger
share of the international market for its manufactures and
services It can boast a stable political environment, an
abundance of raw materials, a skilled workforce, well
developed infrastructure and proximity to the fastest
growing region in the world.
Asia is becoming ever more important as a market for our
exports. Already half of our exports are sold to Asian
markets. It has often been said that our future lies in
Asia. How, when we consider that the most dynamic economies
on earth are just to our north, can it be otherwise?
That is why I told the Asian Studies Association in February
this year that it was no exaggeration to say that as
Australia enters its third century of European settlement,
one of the most important and testing challenges we face is
the challenge of finding our true place in Asia. 2677
Australians should recognise that our self-interest lies in
our becoming an integral part of the region, a full
participant in regionalefforts towards peace and security
and an economic partner co-ordinating our skills and
specialisations with those of Asia to the consequent
prosperity of all.
Asia will continue to demand substantial supplies of our
primary commodities for decades to come.
But, in addition, as the wealth of Asia increases and as the
exchange rate pressures of industrial success begin to force
the most rapidly growing exporters to restructure, Asia will
also increasingly demand processed raw materials,
manufactures and services.
Unfortunately there are certain factors which have inhibited
our trade performance in Asia.
Research has shown that Australian companies enter export
markets in a typical sequence, starting with New Zealand and
the South Pacific, proceeding to the West Coast of the USA
and then trying the UK. They are less interested in the
markets of Asia, despite their high growth rates and
geographical proximity.
A major factor in this relative lack of interest in Asia is
that Australian business people, in general, feel less
comfortable in Asian cultures than in countries where
English is the natural language and familiar business
practices are followed.
This year's Export Award applicants reinforce the point:
finalists were much more likely to employ people proficient
in languages than were non-finalists.
Sensitivity to other cultures will also be a key to
Australia's ability to compete successfully in Asia. We
need to look beyond the imaginary and irrelevant differences
between people in order to understand and respect the real
differences which together make up the rich fabric of
humanity.
Again, this year's Export Award applicants confirm the
point. Finalists spent twice as much time visiting their
overseas customers as did non-finalists. And more effort
went into visiting customers in regions such as the Middle
East and Asia whose cultures are significantly different
from Australia's.
Finally, I would like to congratulate all of the 1988
Bicentennial Export Awards applicants. Their determination
and commitment need to be emulated by companies throughout
our manufacturing and service industries if Australia is to
secure a more prosperous future.
2678