CHECK AG AINS P. MR EMjAR= Rn! UNTIL DELIVERY
SPEECH BY THE PRIME MINISTER
OPENING OF AUS TRALIAN COUNCIL OF
SOCIAL SERVICE'S CONGRESS
SYDNEY OCTOBER 3, 19g1
1991 is barely nine months gone, yet in those months we have
witnessed more change in the world than in any full year of
my lifetime.
Over the weekend, just when the world was catching its
breath after the dissolution of the Soviet Communist Party
and the break-up of the Soviet Empire, President Bush
announced a unilateral nuclear arms reduction program of
unprecedented size and scope. This courageous and farsighted
decision is yet another signal that the Cold War now
belongs to history, and that most horrifying acronym
M. A. D. Mutually Assured Destruction can finally be
eliminated from our strategic lexicon.
These are signposts towards the chance of a better world
than humanity has thought possible since World War II, when
the great hopes at war's end were to be blasted by the
nightmare of nuclear confrontation. The way ahead remains
immensely complex and difficult. But the one thing that
stands out i~ s the enduring passion of humanity for
democracy, f-or social justice, for the twin goals of
political arid economic freedom.
Australians have been among the fortunate few who have
enjoyed those freedoms, however they may have sometimes seen
to be threat~ ened in the worst periods of the Cold War.
Indeed, too often we may have taken them for granted.
I would not want to insult the sacrifice of those men and
women in so much of the world who are attempting to throw
of f the dead weight of the command economy and
totalitarianism by measuring our Australian experience
against the: Lrs.
But AustraliLa also has faced the pressure of change.
Many Australians and their families have been affected by
the great changes the Australian economy our Australian
society is undergoing, as we undertake the necessary tasks
of making our economy more internationally competitive.
I don't expect any section of the Australian community to
accept hardship blindly, passively, uncomplainingly. That
is precisely what social justice in the Australian democracy
stands against: we are not in the business of imposing
diktats as a government, or accepting diktats as a people.
A continuing and central element of the policies pursued and
implemented by my Government has been to ensure that the
principles of social justice go hand in hand with the
principles of economic reform
that means people don't get thrown of f unemployment
benefit after nine months
that means people are covered by a universal health
care system irrespective of their ability to pay
that means people have security in their retirement
income through their age pension in the short term and
legislated superannuation in the long term
that means assistance for low to moderate income
families.
A Labor Government means we are building a more just society
at the same time as we are embarking on the necessary tasks
of economic reform.
We can never accept that economic change must mean social
injustice. Ladies and gentlemen, with all our long tradition of freedom
we still have much work to do in securing social justice for
all Australians.
Much has been achieved, much remains to be done. But one
thing has remained obvious. There can be no social justice
in Australia, or anywhere else, without economic progress.
There can be no social justice without an internationally
competitive economy. We must have an economy able to stand
on its own feet, based on an expanding manufacturing sector,
on adding value to our unique suite of natural resources so
that we are less reliant on our commodity export base, and
thereby less exposed to the volatility of international
commodity prices.
Economic progress means securing low unemployment and
permanently lower inflation through sustainable growth.
Let me emphasise that it is no part of our policy that high
unemployment should be allowed to become anything like a
permanent feature of our society.
For a Labor Prime Minister the idea of permanently high
unemployment is repugnant but there is only one way to cure
unemployment in the long term. We must attack the causes.
We must create sustainable employment in an efficient,
export oriented economy not make up artificial job
creation schemes, where the jobs finish with the money.
We have never wanted to step from the path of job growth.
But had we niot, three years ago, done something about the
fact that spending was growing at twice the rate of
production 1: he world would have extracted a far heavier
price f rom us with much graver social consequences than ore
in fact have experienced.
But these past 12 months of job loss should not mask our
achievement of the previous 7 years of job creation. Even
after taking into account recent job losses, a total of
million new jobs have been created that's 177,000 new
jobs a year., My message is that we did it before and we
will do it again, as the economy moves, healthier than
before, out of recession.
We have joined the league of low inflation nations. Our
inflation rate is forecast to drop to 3% in this financial
year. At 3.4% it is already below the 4.3% average of our
major trading partners in the OECD.
We must keel) inflation at levels comparable with our trading
partners. Low inflation is critical to achieving economic
progress and to building a just society. High inflation
distorts key economic decisions on savings and investment
and eats away the incomes and savings of low and fixed
income earners.
As I have been saying to industry bodies over the past
weeks, to achieve sustainable economic growth, and the jobs
growth it will bring, we must build a competitive economy.
And we are doing this, although many Australians are just
beginning to realise that restructuring is not only being
talked about: it is being achieved the great change that
has occurred in our manufacturing industry is testimony to
our success.
Over the eight year period to 1990-91 the value of
manufacturing exports increased by 220 per cent. This has
resulted in a dramatic improvement in the Balance of
Payments wit~ h, for the first time in ten years, a surplus on
goods and services forecast for 1991-92. The August figure,
released earlier this week, showed record exports for the
fourth successive month and the biggest ever recorded
surplus on goods and services.
The benefits of the, sometimes tough, policies we have had
to pursue are now being seen.
These benefits will continue to flow and become felt widely
through the economy.
The Budget forecasts show real growth returning to the
economy in 1991-92 with growth through the year of 3 3/ 4 per
cent. Concerted employment growth should begin to be
evident early in 1992.
We are coming out of the recession, but we are not
complacent. I gave an undertaking to the ACTU that we will
carefully study the ACTU Charter for Jobs and we are meeting
with them later this month. We will continue to consult
with relevant groups in the community.
Ladies and gentlemen, the thrust of this government's policy
effort has been to get the basics of the economy right,
because without the basics we cannot build a just society.
But social justice means much more than creating an
internationally efficient economy. It is not difficult to
think of economies apparently more efficient and competitive
than ours which are deficient in personal and political
freedoms.
Social justice demands a fairer Australia, a compassionate
Australia. In restructuring the economy we cannot and must
not neglect those affected by the changes.
In the transition to recovery, my Government is providing a
comprehensive safety net for those people directly affected
by the downturn.
First, benefits have been increased substantially in real
terms over the period of my Government. For example, the
real income of an unemployed single adult has increased by
26% for those not renting privately and by 54% for those
renting privately. These real increases are protected by
the indexation of all welfare payments.
Second, the introduction of Newstart represents a
substantial positive commitment by Government to assist
those most in need. It is aimed at assisting unemployed
people, particularly those disadvantaged in the labour
market, to move from social welfare dependency into
employment through active job search and training.
Initially the Newstart initiative raised some concerns in
the community, not least from ACOSS. But I understand that
it is becoming more accepted as some of the concerns prove
to be unfounded.
The Newstart initiative has been supported by increased
expenditure on labour market programs by 50%, from $ 399
million in 1990-91 to an estimated $ 598 million in 1991-92.
In addition, TAFE funding has increased to $ 420 million and
funding for entry-level and skills training programs has
increased to $ 180 million.
The purpose of these measures is twofold. First, to
strengthen the skills of job-seekers and workers
particularly the most disadvantaged job-seekers the long
termi unemployed, workers with literacy and language
difficulties, and young people. And secondly, to ensure that
skill shortages do not emerge during the recovery, as they
did after thle 1982/ 83 recession.
The last line in the safety net is emergency relief. The
demand for this type of assistance increases markedly during
recession and emergency relief agencies find themselves
under great pressure to meet the genuine needs of people in
crisis. Emergency relief funding was increased in the Budget by
$ 3 million to a total of $ 10.84 million.
I am able to announce today that, since the Budget, the
Government has re-examined the role of the emergency relief
program in providing vital " last resort" financial
assistance to people in need, and has agreed to provide
additional funding of $ 3.5 million this year to bring the
total funds available under the program in 1991-92 to $ 14.4
million. In taking this decision the Government has recognised that
unemployment is one of the major factors impacting on the
demand for emergency relief assistance, and has agreed that
in future years the level of emergency relief funding
provided in * the budget will be related directly to the
forecast level of unemployment for that year.
Ladies and gentlemen, my Government has the policies to
secure a return to sustainable jobs growth, although
unemployment could increase in the short term. The Budget
strategy for economic recovery is on track. This is
obviously an absolutely fundamental prerequisite to
establishing a more just society.
To build a truly just society, however, requires action on a
much broader front. We need to direct assistance to those
in need; ensure that our rapidly ageing population has a
secure retirement income base; provide an equitable and
sustainable health care system; improve Government services
and their delivery; and improve the places where people
live and work.
My Governent is responding to each of these challenges.
In 1987, my Government delivered a historic reform to assist
low-income families by introducing the Family Allowance
Supplement. As a result, we have massively increased in
real terms support for low-income families.
The 1991-92 Budget builds on those achievements. We have
made the families support system simpler and more
consistent; increased assistance to low-to moderate-income
families; provided stronger incentives for people to seek
jobs; and delivered greater assistance to the primary
carer.
I am sure you are familiar with the changes announced in the
Budget. Suffice to say that these reforms including an
increase in the FAS threshold, measures to improve FAS takeup,
and the payment of Guardians Allowance to sole parents
will benefit over 200,000 low to moderate income families.
Also, all payments for children will now be made to the
primary carer, usually the mother. The major beneficiaries
are spouses of Jobstart, Newstart and Sickness Allowance
recipients. They will directly receive benefit payments for
their children.
Furthermore, they will continue to get payments for their
children through the Social Security system even though
their family circumstances change. This means that families
making the transition from unemployment to employment will
have the security of knowing that their FAS entitlement will
be assessed and paid to them quickly.
Ladies and gentlemen, our population is rapidly ageing to
the point where in just 20 years time, around 20% of
Australians will be aged over 60 years and in 40 years time
more than 26% of Australians will be aged over 60 years.
An increasingly ageing population will create massive
strains unless we act now. The security of retirement
incomes of the current generation depends on us acting now.
Social justice demands that we act now. That is why we
announced in the Budget that we will be legislating for a
minimum level of employer superannuation support of 9% by
the year 2000.
I am aware that ACOSS is concerned about the equity of the
current superannuation tax arrangements.
We announced in the Budget that the tax arrangements for
personal contributions to superannuation will be reviewed.
The review will focus on simplification and on ensuring that
the arrangements are equitable.
Your concerns will be assessed in that review, although I
would point out that my Government has already significantly
reduced inequities in the superannuation area.
Prior to 1983, only 40% of the workforce had any
superannuation cover largely restricted to high income
earners and to the public sector. Virtually unlimited
deductions were available for employer contributions, and
only limited deductions were available for the self-employed
and for unsupported employee contributions.
The Government has transformed this situation by increasing
coverage through award superannuation and the Superannuation
Guarantee Levy announced in the Budget, and by changing the
tax system to help focus superannuation on retirement income
provision.
Superanniuation tax concessions are ultimately regulated by a
person's reasonable benefit limit which is based on a
tapered scal. e to ensure a more equitable distribution of tax
concessions. Reforms to the reasonable benefits limit
implemented in July 1990 have enhanced its effectiveness and
improved thet access of low income earners to superannuation
tax concessions.
Medicare is a central plank of our social justice strategy.
It is the most stable system of health insurance in our
history. It: guarantees access to basic health services for
all Australians and, at the same time, has contributed to
restraining our total health costs.
However, the: current growth rate in medical services,
particularly in general practice, radiology and pathology,
are unsustainable. At current growth rates, the number of
services per person will double in just 20 years.
That problem is not a problem of Medicare it is a problem
that flows from open ended insurance for fee-for-service
medical practice.
Therefore, we are restructuring the Medicare benefits
arrangements to promote more appropriate use of medical
services, higher quality of care and more efficient use of
health resources. At the same time we are providing for
improved protection for families from high out-of-pocket
costs for private medical services. The Government has also
maintained protection for people on low incomes and the
chronically ill.
These reforms are designed to entrench Medicare into the
Australian landscape. The Government is, nevertheless,
aware that the announced reforms to Medicare has aroused
concerns in -the community, including from ACOSS. You will
be aware that a special Caucus working party will be
assessing these concerns in a Report which will be
considered shortly.
Ladies and gentlemen, the July Special Premiers' Conference
agreed to fundamental microeconomic reforms to develop a
more efficient and competitive economy.
It is now time to ensure that the singular opportunity
offered by the Special Premiers' Conferences is similarly
harnessed to improve social and community services.
I have always believed that co-operation flowing from
consensus is the best, and, ultimately, the only way of
achieving a better and more efficient Federal structure
which is the aim of the Special Premiers' Conference
initiative.
Current intergovernmental arrangements have developed in an
ad hoc way since Federation and although some find them
comforting, ultimately they will fail us.
The search for a better way has involved looking at all
options for the management of current joint responsibility
programs. Community views have provided an important input
to this process. In the health, housing and community
services areas, for example, ACOSS itself has co-ordinated
national consultations with the community welfare sector.
The results of this process will be considered at the
November Special Premiers' Conference. Importantly, there
has been a willingness to consider new structures and new
arrangements which may hold the promise of an end to the
present in-built causes of inefficiency and poor service
delivery. One thing that will not be changing, however, is my
Governent's commitment to social justice and what it means
in terms of equitable access to appropriate and adequate
services. Let me make this very clear: the Commonwealth will not walk
away from any of its social justice responsibilities and
objectives. This Government has a very strong record in
advancing social justice through protecting the interests of
the more disadvantaged members of the community. In
conjunction with the States, priority has been given to
improving services for groups including Aborigines, women,
the aged, the disabled and the homeless.
The Government's commitment to these principles and
priorities remains unchanged. Any agreement on future roles
and responsibilities must protect the interests of clients
and must clearly specify national interests and agreed
national objectives.
Ladies and gentlemen, where people live can have an
important influence on, and be an underlying cause of,
difficulties in gaining access to employment and services.
Initiatives addressing both ends of the locational issues
spectrum are being advanced in 1991-92.
The first of these concerns Australia's cities; the second
relates to the very different problems faced by the people
in rural and remote areas across the whole of the north of
our continent.
Both of these sets of problems have dimensions which cut
across the usual boundaries of responsibility between levels
of government and service-delivery agencies. For this
reason they have tended to be put into the " too hard"
basket. We must overcome that inertia.
The Building Better Cities Program will provide $ 800 million
over five years to State and Territory Governments to assist
them with projects that will improve linkages between work,
housing and services, to improve public transport and to
address issues of housing density and better governmental
processes relating to land use and service delivery.
With 60 per cent of Australians living in our five largest
cities it is essential that we address the problems of our
urban environment now, if there is to be real social justice
in the 21st -century.
For Australians living in remote areas, our decision to
develop, by mid-1992, a North Australia social justice
strategy, is clear evidence of my Government's awareness
that problems of access to housing, education, employment
and services are by no means confined to city dwellers.
To overcome the " tyranny of distance" we need to go beyond
services designed for urban environments and make more
imaginative attempts to develop programs better suited to
the specific geographic and demographic characteristics of
the north.
To carry this work forward we have established a North
Australia Taskforce, whose aim is to develop and recommend
practical improvements, based on an assessment of actual
needs, rather than on the limitations of existing programs.
Ladies and gentlemen, I note that the Opposition Leader is
going to speak to you tomorrow. The Coalition's priorities
are plain; economic dogma over social justice.
The Opposition' s proposed consumption tax is deeply
regressive. The' winners will be the most privileged the
losers will foe the lower and middle income earners, the
poor, the aged, the disadvantaged. Bread and milk will be
dearer luxury cars will be cheaper.
The consumptiLon tax would smash our historic inflation
gains, and cause a once and for all reduction in the value
of accumulated savings.
Combined with massive Government spending cuts, a
deregulated : labour market and a 0-2% inflation target it is
a policy package designed to drive unemployment much higher
indeed, there could be no other possible outcome from such
a package. And the measure of their compassion is their
policy to cut: people of f unemployment benefits after
9 months.
It is a policy package which makes my Government more
determined than ever to deliver a more just society, a
fairer Australia.
Ladies and gentlemen, I began by saying what an
extraordinary year 1991 has been, and how in the events of
this year, especially in the progress towards the removal of
the nuclear t: hreat hanging over us all, we can find hope and
a way forward.
In the past Australians have shown that we are adaptable and
capable, clever and compassionate. The difference now is
that, as I have said many times this year, we are a nation
of 17 million in a world of 5 billion people. It is a not a
world composed of old friends who will help us out. It is a
super competitive world, where each nation is as selfinterested
as the next.
The challenge for us is to create in this country an
internationally competitive economy at the same time as
advancing our agenda for social justice and social change,
and providing for the underprivileged and disadvantaged.
That is what we are in government to achieve. There are
hard and complex decisions to be taken, and we will take
them. Not from an ideological point of view, but from a
compassionate and fairminded view of where we are going, and
what we must do to get there.
Australia will face the twenty first century with an
internationally competitive economy, but it will be a fairer
Australia striving to be fairer still.
REAL INCOME IMPROVEMENTS FOR PENSIONERS AND BENEFICIARIES
Coalition Labor
1975-1983 1983-1991
Sol* parent with
2 children,
Not renting privately
Renting Privately + 32%
Married pensioner writh
2 children
Not renting privately + 21t
Renting Privately -2t + 26%
Unemployed single adult
( 21 and over)
Not renting privately -19% + 264
Renting Privately -19t + 54%
Single pensioner,
no dependents
Not renting privately + 140
Renting Privately -24 + 21%
Married pensioner couple,
no dependents
Not renting privately + 144
Renting Privately 21k + l8%