EMBARGO: 7.30 P. M.
NATIONAL BROADCAST BY THE PRIME MINISTER OF AUSTRALIA,
MPl. E. G. WHITLAM, SUNDAY, 30 SEPTEMBER 1073
Good evening. I want to speak to you tonight about some very important decisions taken this week by the national Parliament.
I want to explain what these decisions mean to you, the people of Australia. The Parliament has decided to seek your authority to deal as effectively as possible with a problem affecting all of us the problem of inflation. We will be asking you to give the national Parliament power over prices and power over incomes.
These two requests will be submitted to you as a referendum a vote of all the people in the six States on 8 December.
Let me tell you why the Government -and both Houses of Parliament have taken this course. It's just ten months since you elected us to Government. You may recall that soon after the elections a fortnight after we assumed office I addressed you on national television and acknowledged that inflation was
the major problem of economic management we had to face.
I pledged to continue the fight against inflation while
at the same time restoring full employment. We have achieved genuine full employment. That part of the task is done. The other battle the battle against this worldwide problem of inflation continues.
I want to emphasise that there are some old-fashioned methods
of controlling inflation that our Government rejects. We will
not attack inflation by creating unemployment. We will not attack
inflation by throwing Australians out of work. We will not expose
industry to clumsy, stop-go fluctuations in demtand, which can
destroy its ' efficiency and incentives. This year we have lifted
our national growth rate to a near record of 7 per cent; we are
enjoying conditions of buoyant business prosperi-t--y. We want to
keep things that way. So our attack on inf,_ at ion has been through
a series of carefully timed and related measures. We have cut
tariffs. We have twice revalued the currency, stimulating the
flow of imported goods and reducing the. ir prices. We-have
initiated a whole series of long-term policies to assist industry,
to protect the consumer, to encourage greater efficiency and
competition in a system where business and Government must
share responsibilities.
There is, however, one weapon against inflation that the national Parliament lacks. It is the only capon thzat will give
zeal force to the measures we have taken. 1iLweapon is power
over prices and incomes. The national Parlia1. ecnts of all
comparable countries, including those withei: l systems,
possess such powers; our Parliament does not. Every other major
industrial nation has been able to use such powe-rs whlen the national
Government needed them; we have not, Accord-: ngly, my Government
Will be asking you to grant these powers to the Australian
Parliament.
Our referendum has been designed to give you the widest choice of alternatives. We shall submit to you two separate
qijestions one concerning prices, the other concerning incomes.
You will therefore be able tp decide whether you wish to give
t: ie national Parliament power over prices alone, over incomes
aLone, over both, or as at present over neither.
You may ask why we are seeking a specific power over incomes.
I give you one reason. There are many lawyers who believe that
a power over prices alone would include a power over wages as
wall since wages may be regarded as the price of labour. But
t: aat would leave the Parliament without power over other forms
of income, like rents and dividends. So we believe the fairest
course is to seek a power over incomes of every sort not just
tae wage earner's pay packet.
Let me remind you how this referendum came about. You will ramember that early this month, representatives of the Australian Government, the State Governments and local government met in Sydney to consider changes in the Constitution. At that convention I invited the Premiers on three separate occasions to refer to the national Parliament the powers over prices which the State
Parliaments have. The Premiers of the major States were unwilling to do so. I have to say frankly that, had they done so, there
would be no need for this referendum. Some people argue that the
States could apply these powers themselves; again they have not
done so. Even if they did, we believe the difficulties of
applying control over prices and incomes would become immensely
complex if many different governments were involved.
Remember, we are not asking you to deprive the States of any
powers they are using; we are merely asking you to give us the
same powers that the States have but refuse to use. Inflation is
not a problem for the States; it is a problem for us all. If the
powers we need are to be effective, they must be immediate, beyond
challenge, and uniform in their application. Only the national
Parliament can act in that way.
You may ask why these questions have to wait till December to be decided. The answer is that we are required by the Constitution to wait at least two months before asking you to vote
cn our proposals. That gives both sides time to prepare their arguments, which will be printed and distributed to every voter-in
Australia. I remind you,, in passing, that new voters must be Enrolled no later than 12 November. But do not imagine we will sit
idly by till this issue is determined. We shall act, if necessary, to strengthen the measures we have already taken.
I do not want to give the impression that the powers we are
Eeeking will be a magic cure for inflation on their own. I should
ntot be honest with you if I did. For there is, of course, no magic
cure; no simple solution. Other countries have proved that.
B~ ut we believe that the Australian Parliament, charged with
responsibility for the management of the national economy, should
have a full range of weapons in its armory. Do not ask us to fight
this battle with one arm tied behind our backs. Grant us the
weapons which other national governments possess and have found it
necessary to use.
A second reason why the Commission can contribute to a better use of the nation's resources stems from its status as an independent statutory authority. The Commission will be able to develop and pursue a long term program of inquiries, free from dayto-day political pressures. This in turn has very important implications for the amount and quality of its information and for the depth of analysis which the Commission can undertake.
This cf course includes analysis of the effects of its
recomrendations on the use of resources in different industries.
For example, industries which are comparatively wasteful in their
use of resources and which impose a significant cost on the
community can be systematically examined through public inquiries,
and obliged to justify any special assistance they receive from
the government by demonstrating the benefits they bring to the
community. The Commission will be obliged, through its public
reports, to explain why it considers that certain industries should
receive more assistance than others.
I propose now to consider some of the more important clauses in the Bill and the reasons for them.
Clause 21 states that the functions of the Commission
are tD hold inquiries and make reports...." in respect of matters
affecting assistance to industries and other matters that may be
referred to the Commission....". This clause covers any industry,
whether in the primary, secondary or tertiary sector of the economy.
It is therefore the clause which gives effect to the Government's
wish to extend the present advisory system for manufacturing
industries based on the Tariff Board. Together with Clause 23 ( 2)
which allows the Commission to consider all possible forms of
assistance for a particular indtstry Clause 21. provides the basis
for systematic analysis of the si-ructurn of industry assistance in
Australia, and thus for evolving a more coherent and rational policy
by the Government towards industrial development.
Clause 22 provides certain policy guidelines for the
Commission which place the work of tihe Commission firmly in the
framework of general economic management.
The guidelines will also help those making submissions for assistance from the Government, by providing a basis for them to relate their claims to the public interet. Thev also make clear the need for Australia's assistance policies to recognise our international trade obligations.