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STATEMENT BY THE PRIME MINISTER, THE HON P J KEATING MP
RELEASE OF REPORT " RESTORING FULL EMPLOYMENT"
Today, I have received the Report of the committee on
Employment Opportunities. The Government established-the
CommTittee on May 28 this year, requiring it to analyse
the causes of Australia's unemployment and present policy
options for the future.
It should be understood that this is not a Government
Report, but a Report the Government and to the
Australian community. There remains the process of
public discussion which must occur between now and the
delivery of the White Paper next May.
During this process of public discussion I think it would
help for us all to reflect that as we argue the pros and
cons most of us business people, lobby groups, and
politicians will do so from the relative comfort
station of actually having a job.
In other words, to be effective the process will require
all Australians in work to imagine what it i; s like to be
out of work.
Unemployment is at once offensive to our ideals and a
major source of inefficiency in our economy. It has
devastating affects on individuals and their families,
and debilitates social cohesion. It increases the costs
of welfare and hence the burden of taxation. It limits
the scope of public expenditure, including the reduction
of public debt. 7: is Australia's greatest contemporary
problem. it is the first priority of the Government and
must be the first priority of the nation.
The Report makes tefundamental issues abundantly., clear.
There is no simp'ñ e solution to unemploymenrt, no single
solution: but, without question, an essential condition
of success in the fight is a high and sustainable rate of
economic growth.
we have every reason for confidence that we can achieve
this growth. The cresens rate of 31.5% compares favourably
with our OECD counterparts. Interest rates are the
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lowest in more than a decade, inflation the lowest in a
generation. Profits are back to pre-recession levels.
Australia is more competitive than ever before and the
willingness to embrace change on which this new
competitiveness has been built will itself be a vital
factor in solving our unemployment problems.
The Report makes clear that more change is needed.
Australia needs to continue on the road to greater
competitiveness. Without it, and without a higher rate of
economic growth than we have at present other policies
will merely tinker at the margins of our problem.
The Government is firmly of the view that we can restore
full employment.
But as the Report says, we can only do this provided that
the Government and all sections of the community are
prepared to develop a new and stronger sense of national
purpose, and a consensus that the goal is worth pursuing.
In the past year, we have done much to make the economy
more competitive, much to stimulate growth and much in
the way of direct labour market assistance for unemployed
people. We have spent more than $ 1.3 billion on labour market
programs this year, doubling the job chances for over
500,000 unemployed Australians.
The Committee takes the view that, vital though it is,
economic growth will not on its own be sufficient to
solve the problem.
We learnt this during the 1980s when, at the end of an
employment boom, 100,000 people remained unemployed for
12 months or more. These long term unemployed
Australians now number 340,000.
The Report is unequivocal about this: long term.
unemployment has severe social implicaEions and is a
severeimpediment to labour market efficiency.
The Report, therefore, presents various options for an
immediate, determined attempt to reduce long-term
unemployment. Central to these options, is the principle of " reciprocal
obligation". That the obligation on Government and
the community to provide positive assistance to : nose who
are out of work, and the obligation on unemployed
individuals 1to actively seek work and accept it when it
becomes available.
The obligation, of course, extends to business, unions
and empioyees who must address the constraints to growth. 13 Or1
3
Foremost amongst the Conuittees options is a
" Job CompactO for the long-term unerqployed under which
this country would decide that it i..% simplv unacceptable
for anyone to remain out of work fdr longer than a
specified period the Report suggests 18 months.
The aim of the " Job s Compact" is to break through the
barriers which confronit the lona term unemployed: only a
Dob effectively puts a person back into contact with the
labour market. Only a job puts skills back into action
and encourages the development of new ones. Only a job
regenerates morale, discipline and confidence.
The Report estimates that the " Job Compact" would reduce
the number of long-term unemployed from an anticipated
290,000 in June 1988 to around 90,000.
The Report also addresses the critical issue of
restructuring our social security system to reflect
changing employment opportunities and changing job
aspirations. In addition, the Report contains a wide range of
proposals for the targeting and delivery of services,
increasing the skills of the Australian workforce and
encouraging the unemployed to undertake training and
study. This is a most important Report, not just for the
Government, not just for the unemployed, but for the
Australian community for every Australian.
It raises questions about matters which fundamentally
affect the welfare of our fellow Australians, the health
of our communities, the well being of future generations,
and ultimately our status as one of the world's advanced
social democracies.
I urge all Australians to recognise that unemployment is
their concern, and to make the goal of full employment
theg oal.
CANB3ERA December 15, 1993
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