93D~
SPEECH BY THE PRIME MINISTER, MR E. G. WHITLAM, M. P. 1
AT THE OPENING OF THE FEDERAL CONFERENCE OF THE FEDERATED
MISCELLANEOUS WORKERS' UNION OF AUSTRALIA,
DICKSON HOTEL, CANBERRA, 14 OCTOBER 1974
I WELCOME THIS OPPORTUNITY, SO SOON AFTER RETURNING
To AUSTRALIA, TO COMMENT DIRECTLY ON SOME OF THE BASIC
ISSUES WHICH HAVE BEEN DEBATED IN AUSTRALIA IN THE LAST TWO
WEEKS. I HAVE OF COURSE BEEN IN CLOSE TOUCH WITH
DEVELOPMENTS AD DECISIONS AFFECTING'THE AUSTRALIAN ECONOMY
WHILE TRAVELLING OVERSEAS. IMAKE THAT POINT BECAUSE
OUR OPPONENTS AND SOME SECTIONS OF THE PRESS HAVE TRIED
TO SPREAD THE IDEA THAT BECAUSE OVER THE LAST TWO WEEKS
IHAVE ADDRESSED THE GENERAL ASSEMBLY OF THE UNITED NATIONS.-
HAD DISCUSSIONS WITH THE NEW PRESIDENT OF THE UNITED STATES
AND THE RE-ELECTED PRIME MINISTER OF CANADA-AND ATTENDED THE
SOUTH PACIFIC CONFERENCE, THE Fiji CENTENNIAL AND THE
NORFOLK ISLAND BICENTENNIAL. THEN SOMEHOW I HAVE BEEU OUT
OF TOUCH WITH AUSTRALIA AND INDIFFERENT TO DEVELOPMENTS
AT HOME. IDO NOT NEED TO LABOUR THE ABSURDITY OF THIS
ARGUMENT. IMERELY SAY THAT IN MY ABSENCE MY COLLEAGUES
AND I HAVE CONSULTED AND WORKED TOGETHER. ICOMMEND THE ACTIONS
THEY HAVE TAKEN, THE DECISIONS WE HAVE TAKEN TOGETHER.-
AS A GOVERNMENT, AS A TEAM. mi. / 2
-2-
I REAFFIRM MY COMPLETE CONFIDENCE IN THE STABILITY
OF THE AUSTRALIAN ECONOMY, MY COLLEAGUES ACTED DECISIVELY
TO DEMONSTRATE THAT OUR FINANCIAL INSTITUTIONS SUCH AS BANKS
AND BUILDING SOCIETIES ARE SOLID AS A ROCK, I BASE MY
CONFIDENCE ON THE FUNDAMENTAL SOUNDNESS OF OUR ECONOMY
ON THE STRENGTH OF OUR NATURAL RESOURCES AND THE CONTINUING
ECONOMIC PROGRAM OF THE GOVERNMENT, TODAY I SHALL REFER
DIRECTLY AND FRANKLY TO THE PROBLEMS WHICH ARE FOUND IN
SOME DEGREE IN THE AUSTRALIAN ECONOMY, FIRST, HOWEVER,
I UTTERLY REJECT THE WARPED ATTITUDE OF THE OPPOSITION IN
SEEKING TO MISREPRESENT AND EXAGGERATE THE PROBLEMS WE
FACE, FIDAMENTALLY THE GOVERNMENT'S PROGRAMS IN THE FIELDS
OF EDUCATION, HEALTH AND TRANSPORT, AND THE GOVERNMENT'S
DETERMINATION TO MAINTAIN EMPLOYMENT OPPORTUNITIES, MEAN
THAT AUSTRALIANS CAN LOOK FORWARD TO A CONTINUING AND
IMPROVING HIGH STANDARD OF LIVING, OUR OPPONENTS, FOR
SELFISH POLITICAL REASONS, REJOICE IN CREATING AN ATMOSPHERE
OF PANIC, CONFUSION AND RUMOUR-MONGERING, THEY PREACH
ABOUT A LACK OF CONFIDENCE, YET NOTHING DOES MORE -TO
DESTROY CONFIDENCE THAN THEIR OWN INCESSANT PROPHESIES OF
DOOM AND DISASTER, LET US REJECT THESE MERCHANTS OF GLOOM
AND THEIR MESSAGE OF DESPAIR, THESE NAGGING AND NEGATIVE
MEN HAVE NOTHING TO OFFER US IN OUR PRESENT DIFFICULTIES, / 3
-3-
I EXPRESS MY CONCERN NOT MORBID PESSIMISM, BUT
A FRANK AND REALISTIC CONCERN ABOUT THE NUMBER OF AUSTRALIANS
REGISTERED AS UNEMPLOYED. ON THIS ISSUE I EMPHASISE WITH
ALL THE FORCE AT MY COMMAND THAT THE GOVERNMENT REJECTS THE
CONSERVATIVE PHILOSOPHY WHICH SAYS THAT MASSIVE
UNEMPLOYMENT SHOULD DELIBERATELY BE CREATED AS A DEVICE
FOR SLOWING DOWN THE RATE OF INFLATION. IN MANAGING THE
ECONOMY THE GOVERNMENT CONTINUES TO PURSUE THE GOAL OF
FULL EMPLOYKENT. ALL OF US WHO ARE INVOLVED IN
CONSIDERING THESE NATIONAL ISSUES SHOULD ACKNOWLEDGE THAT
IT IS NO SIMPLE MATTER, GIVEN INTERNATIONAL ECONOMIC
FORCES, TO SECURE BOTH FULL EMPLOYMENT AND ALSO A LOW
INFLATION RATE. OUR OPPONENTS PRETENDe QUITE DISHONESTLY,
AND IN THE FACE OF EXPERIENCE IN OTHER COUNTRIES WITH.
ECONOMIES SIMILAR TO OUR OWN, THAT THE LIBERAL PARTY ALONE
HAS A MAGIC FORMULA TO ACHIEVE THIS GOAL. MY MEETINGS
WITH WORLD LEADERS HAVE SHOWN ME JUST HOW COMPLEX, HOW
UNIVERSAL, HOW DIFFICULT THIS PROBLEM is. No ONE HAS
FOUND A SOLUTION EXCEPT THE LEADER OF THE OPPOSITLON IN
AUSTRALIA, AND MRWII WJINI MdAHON. I AM GLAD TO SEE THAT
MR MCMAHON HAS EMERGED AS CHIEF LIBERAL SPOKESMAN ON
THE ECONOMY-WITH THE EXCEPTION OF O-IS LEADER HE KNOWS
MORE* ABOUT ECONOMIC MISMANAGEMENT THAN ANYONE IN AUSTRALIA.
THEIR EXPERIENCE IS UNRIVALLED. THEY ARE THE ARCHITECTS
OF THE TWO MOST DISASTROUS BUDGETS IN RECENT HISTORY.
BETWEEN THEM THEY CREATED THE CONDITIONS WHICH HAVE LED TO
OUR PRESENT INFLATION. YOU DON'T HAVE TO TAKE MY WORD ' FOR
IT. I GIVE YOU THIS QUOTATION FROM AN EDITORIAL IN OUR
LEADING ECONOMIC JOURNAL, THE " AUSTRALIAN FINANCIAL REVIEW".
iss/ 4
L4f r -u /; iA/
THIS IS WHAT THE " FINANCIAL REVIEW" HAD TO SAY/ ABOUT
THE RECORD OF OUR TWO CHIEF DOOM-SAYERS:
" THE MCMAHON GOVERNMENT... FOR ELECTORAL REASONS,
PROMOTED A RATE OF MONETARY EXPANSION WHICH WAS
TOTALLY UNJUSTIFIABLE IN ITS RAPIDITY AND
WHICH, WITH THE ACCOMPANYING RATE OF CAPITAL
INFLOW, WAS MAINLY RESPONSIBLE FOR THE
DEMAND INFLATION OF 1972-73 AND THE INEVITABLE
CONSEQUENCE OF THE CURRENT COST INFLATION.
THIS IS SOMETHING WHICH HAS BEEN SAID OFTEN
ENOUGH BEFORE, BUT WHICH SHOULD NOT BE
FORGOTTEN IN THE HEAT OF POLITICAL CONTROVERSY..."
IN ITS ECONOMIC POLICY THE GOVERNMENT HAS ALREADY
INDICATED ITS DETERMINATION TO TAKE IMMEDIATE AND
APPROPRIATE ACTION IN ORDER TO MAINTAIN EMPLOYMENT OPPORTUNITIES.
THE TREASURER'S STATEMENT, MADE WHEN PRESENTING THE BUDGET,
SAID THAT " SHOULD THE NEED ARISE, WE STAND READY DURING
THE YEAR TO TAKE ACTION ON THE EXPENDITURE OR REVENUE SIDE
OF THE BUDGET TO GIVE A QUICK STIMULUS TO DEMAND AND
EMPLOYMENT. CRUCIAL AS THE FIGHT AGAINST INFLATION IS,
IT CANNOT BE MADE THE SOLE OBJECTIVE OF GOVERNMENT POLICY.
THIS GOVERNMENT IS COMMITTED TO THE PROGRAM OF SOCIAL
REFORM TO IMPROVE THE POSITION OF THE LESS PRIVILEGED
GROUPS IN OUR SOCIETY AND TO MAINTAIN EMPLOYMENT
OPPORTUNITIES." -4-
THE ALTERATION IN THE EXCHANGE RATE WHICH WE
MADE ON 25 SEPTEMBER WAS ONE IMPORTANT EXAMPLE OF OUR
WILLINGNESS TO BE FLEXIBLE AND RESPOND TO DEVELOPMENTS IN
THE ECONOMY. THE GOVERNMENT SHOWED BY THAT ACTION ITS
SENSITIVITY TO THE CLIMATE IN WHICH BUSINESS OPERATES.
THE NEW EXCHANGE RATE WILL ASSIST IN RESTORING THE GENERAL
LEVEL OF BUSINESS ACTIVITY AND IN MAINTAINING
EMPLOYMENT OPPORTUNITIES. THE EASING OF CREDIT WILL HAVE
THE SAME EFFECT. I EMPHASISE OUR UNDERTAKING THAT ANY
AVOIDABLE TENDENCY FOR UNEMPLOYMENT TO INCREASE WILL BE
CHECKED BY GOVERNMENT ACTION. IN ITS POLICIES TO REDUCE
INFLATION AND MAINTAIN EMPLOYMENT OPPORTUNITIES, THE
GOVERNMENT NEEDS THE ACTIVE COOPERATION OF TRADE UNIONS,
EMPLOYERS AND STATE GOVERNMENTS. I BELIEVE THE
AUSTRALIAN PEOPLE EXPECT THAT COOPERATION AND WILL BE
MAKING THEIR JUDGMENTS ACCORDINGLY.
SOME AUSTRALIANS MAY FIND THE CURRENT PUBLIC
DEBATE ON IMPORTANT POLICY ISSUES DISTURBING BECAUSE MOST
OF US WANT LIFE TO GO ON SMOOTHLY AND WITHOUT ANY PROBLEMS.
HOWEVER, SOME OF THE CURRENT DEBATE AND DISCUSSION ON POLICY
ISSUES IS NECESSARY BECAUSE OF THE VERY REAL COMPLEXITY OF
THE RELATED MATTERS OF COUNTERING INFLATION, MAINTAINING
EMPLOYMENT LEVELS, AND CONTINUING THE GOVERNMENT'S PROGRAM.
,/ 6
BECAUSE THE POLICIES NEEDED TO COUNTER BOTH
INFLATION AND UNEMPLOYMENT ARE COMPLEX IN THEIR RELATIONSHIP
TO EACH OTHER THE GOVERNMENT IS USING A NUMBER OF DEVICES
TO ACHIEVE ITS ENDS. IN SPEAKING ABOUT MEASURES TO
MAINTAIN THE LEVEL OF EMPLOYMENT WE CAN LIST THE
FOLLOWING ACTIONS:
FIRST, WE HAVE THE REGIONAL EMPLOYMENT DEVELOPMENT
SCHEME WHICH IS DESIGNED TO IMPROVE EMPLOYMENT OPPORTUNITIES
IN CERTAIN GEOGRAPHICAL AREAS WHERE UNEMPLOYMENT EXISTS.
THE SCHEME WILL ENCOURAGE LOCAL INITIATIVES IN SUCH AREAS.
THE RELEVANT LOCAL GOVERNMENT AUTHORITY, FOR EXAMPLE,. WILL
BE ENCOURAGED TO SUGGEST SUITABLE LABOUR-INTENSIVE WORK
PROGRAMS WHICH WILL HELP BUILD UP PUBLIC FACILITIES-IN
THE AREAS CONCERNED.
SECONDLY, THE NATIONAL EMPLOYMENT AND TRAINING
SYSTEM WILL PROVIDE COMPREHENSIVE TRAINING AND RETRAINING
SCHEMES. IN THE DETAILS ALREADY ANNOUNCED THE GOVERNMENT
HAS SAID THAT IT WILL GIVE PRIORITY TO THOSE SEEKING
RETRAINING BECAUSE OF TECHNOLOGICAL CHANGE IN INDUSTRY
OR BECAUSE OF GOVERNMENT POLICIES SUCH AS THE ACTION LAST
YEAR IN REDUCING TARIFF LEVELS BY 25 PER CENT. THE
MINISTER FOR LABOUR IS INTRODUCING THIS TRAINING SYSTEM
AS FAST AS POSSIBLE. REMEMBER THAT WE HAVE HAD TO SET UP
A COMPREHENSIVE NATIONAL RETRAINING SYSTEM VIRTUALLY
FROM NOTHING BECAUSE THE PREVIOUS GOVERNMENT DID NOTHING
IN THIS FIELD IN ITS 23 YEARS OF OFFICE. a/ 7
-7-
THIRDLY, ANY PEOPLE WHO LOST THEIR JOBS EITHER
DIRECTLY OR INDIRECTLY BECAUSE OF THE GOVERNMENT'S TARIFF
CHANGES CAN BENEFIT FROM A RANGE OF ADJUSTMENT ASSISTANCE
MEASURES, FOURTHLY, IN A MORE WIDE-RANGING APPROACH, THE
BUDGET SHOWED THAT THE GOVERNMENT IS DETERMINED TO MAINTAIN
EMPLOYMENT OPPORTUNITIES THROUGHOUT THE COMMUNITY, I HAVE
ALREADY EMPiASISED THAT THE GOVERNMENT STANDS READY TO
TAKE FURTHER STEPS TO ENSURE CONTINUED PROGRESS IN
BUILDING UP EMPLOYMENT,
FIFTHLY, THE CHANGE IN THE EXCHANGE RATE, RECENTLY
ANNOUNCED, IS A PARTICULAR MEASURE WHICH WILL HELP TO PROTECT
EMPLOYMENT OPPORTUNITIES BY IMPROVING THE COMPETITIVE
POSITION IN THE AUSTRALIAN MARKET OF INDUSTRIES COMPETING WITH
IMPORTS AND THE COMPETITIVE POSITION ON OVERSEAS MARKETS OF
AUSTRALIA'S EXPORT INDUSTRIES,
IN REAFFIRMING MY CONFIDENCE IN THE LONG-TERM
BASIC STRENGTH OF THE ECONOMY I AGAIN DECLARE THAT THE
GOVERNMENT CANNOT AND WILL NOT BE DETERRED FROM THE PROGRAM
WHICH THE PEOPLE TWICE ELECTED US TO CARRY OUT, WE MUST
OVERCOME THE PROBLEM OF OVERCROWDED AND INSUFFICIENTLY
STAFFED SCHOOLS A SITUATION INHERITED AFTER A GENERATION
OF NEGLECT BY THE LIBERAL PARTY, 1 ,/ 8
I
-8-
IN AUSTRALIA THE WELL-TO-DO HAVE READY ACCESS TO
SOPHISTICATED HEALTH SERVICES WHICH PEOPLE ON MIDDLE AND
LOWER INCOMES MAY OFTEN BE DENIED, OUR OPPONENTS ARE
COMPLACENT ABOUT SUCH INEQUALITIES IN AUSTRALIAN SOCIETY,
THE CONTINUING PROGRAM OF MAJOR REFORM BY THE AUSTRALIAN
GOVERNMENT IN THE FIELDS OF EDUCATION, HEALTH, TRANSPORT
AND GENERALLY IMPROVING COMMUNITY FACILTIES MEANS THAT
GOVERNMENT EXPENDITURES WILL HELP SUSTAIN THE GENERAL
LEVEL OF ECONOMIC ACTIVITY, AT A TIME WHEN SOME AREAS IN
PRIVATE INDUSTRY ARE PROCEEDING SOMEWHAT CAUTIOUSLY
WITH THEIR PLANS FOR DEVELOPMENT AND EXPANSION THIS
CONTINUING PROGRAM OF GOVERNMENT ACTION IS OF SPECIAL
ADVANTAGE TO THE ECONOMY AS A WHOLE,
To KEEP OUR PRESENT DIFFICULTIES IN PERSPECTIVE,
IT IS USEFUL TO MAKE SOME COMPARISONS BETWEEN THE AUSTRALIAN
EXPERIENCE AND EXPERIENCES IN OTHER COUNTRIES, WE CAN
LOOK AT THE RATE OF INFLATION IN THE 24 COUNTRIES WHO ARE
MEMBERS OF THE ORGANISATION FOR ECONOMIC COOPERATION AND
DEVELOPMENT( OECD), IN 1961-71 THE AVERAGE RATE OF INFLATION
IN THESE 24 COUNTRIES WAS 3,7 PER CENT, IN 1972 THE
AVERAGE RATE OF INFLATION IN THE OECD COUNTRIES WAS 4.7
PER CENT AND IN 1973 IT ROSE TO 7,7 PER CENT, AT THE PRESENT
TIMEt TAKING THE YEAR TO AUGUST 1974, THE AVERAGE RATE OF
INFLATION IN THE OECD COUNTRIES IS 13.4 PER CENT, THE
ANNUAL RATE IN AUSTRALIA AS INDICATED BY THE MOST RECENT
QUARTERLY FIGURES IS 14,4 PER CENT,
-9-
IN OTHER WORDS, IN 24 COUNTRIES ALL AROUND THE WORLD,
INCLUDING ECONOMIES VERY SIMILAR TO AUSTRALIA, THERE HAS
BEEN A STRONG TENDENCY FOR THE RATE OF INFLATION TO
INCREASE, EVEN THE MOST NEUROTIC OPPONENTS OF THE
GOVERNMENT WILL CONCEDE THAT THE AUSTRALIAN GOVERNMENT
DOES NOT CONTROL THE ECONOMIES OF THE USA,, CANADA, THE
UNITED KINGDOM AND THE OTHER MEMBER COUNTRIES OF THE OECD.
ALL THAT HAS HAPPENED IS THAT THE AUSTRALIAN ECONOMY IN
ITS CHANGE IN PRICE LEVELS HAS HAD AN EXPERIENCE SIMILAR
TO THAT OF MOST OTHER COUNTRIES,
LOOKING AT THE QUESTION OF UNEMPLOYMENT IN
TERMS OF INTERNATIONAL COMPARISONS IS NOT A SIMPLE MATTER
BECAUSE OF THE DIFFERENT DEFINITIONS OF UNEMPLOYMENT IN
VARIOUS COUNTRIES, HOWEVER, WE CAN NOTE THAT IN BROAD
TERMS WE HAVE IN THE UNITED STATES AND IN CANADA OFFICIAL
UNEMPLOYMENT FIGURES WHICH ARE ABOVE FIVE PER CENT COMPARED
WITH THE AUSTRALIAN FIGURE FOR SEPTEMBER 1974 OF JUST
OVER TWO PER CENT, I AM NOT SAYING THAT WE SHOULD REST
EASY MERELY BECAUSE THE ECONOMIES OF THE UNITED STATES AND
CANADA ARE SUFFERING FROM AN UNEMPLOYMENT RATE WHICH IS
MUCH WORSE THAN OUR OWN.
UNLIKE OUR OPPONENTS WE DO NOT REGARD ANY INCREASE IN
UNEMPLOYMENT AS " ACCEPTABLE OR " TOLERABLE" I iEWSPAPERS
HAVE RECORDED THE ECONOMIC DIFFICULTIES OF THESE COUNTRIES
AND ALSO THE ECONOMIC PROBLEMS FACING BRITAIN. ALL I AM
SAYING IS THAT THE AUSTRALIAN ECONOMY, IN WHICH
INTERNATIONAL TRADE PLAYS A SIGNIFICANT PARTI IS INEVITABLY
AFFECTED BY SOME OF THE ADVERSE FORCES WHICH ARE FOUND
IN THE ECONOMIES OF VARIOUS OVERSEAS COUNTRIES,
ALL IN ALL WE CAN SAY THAT AUSTRALIANS WHILE
TACKLING THEIR OWN ECONOMIC PROBLEMS, SHOULD REMEMBER THAT
THEIR STANDARD OF LIVING AND THE GOVERNMENT'S PROGRAM'FOR
A BETTER LIFE FOR EVERY FAMILY COMPARE VERY WELLI NOT
JUST WITH DEVELOPING COUNTRIES IN OUR REGION, BUT WITH
THE STANDARD OF LIVING IN MOST OTHER WESTERN ECONOMIES,
THERE IS A SEPARATE AND FUNDAMENTAL ISSUE WHICH
OUR OPPONENTS WOULD LIKE TO OBSCURE, IN THEIR CRITICISM
OF THE GOVERNMENT THE OPPOSITION IS ASKING THE PUBLIC TO
ACCEPT THAT THE PERSONAL INCOME OF THE FAMILY MAN IS ALL
THAT MATTERS, AND CAN BE CONSIDERED IN ISOLATION FROM
EVERYTHING ELSE THAT HAPPENS TO HIM AND TO HIS FAMILY,
AN AUSTRALIAN FAMILY DEPENDS ON ESSENTIAL COMMUNITY SERVICES
TO MEET ITS NEEDS, IN ADDITION TO THE NEEDS WHICH IT
FULFILS FOR ITSELF FROM ITS OWN DIRECT INCOME, ,/ ii
-11-
TAXES PAID BY ORDINARY AUSTRALIANS ARE NOT BEING FED
INTO SOME MYSTERIOUS MACHINE IN CANBERRA WHICH IS
OPERATED FOR THE SOLE BENEFIT OF THE WHITLAM GOVERNMENT,
THE GOVERNMENT HAS NO INCOME OR PURPOSES WHICH ARE
SEPARATE FROM THOSE OF THE AUSTRALIAN COMMUNITY,
AUSTRALIAN CITIZENS, THROUGH THEIR TAXES, ARE PROVIDING
THE FUNDS TO PAY FOR THE ESSENTIAL COMMUNITY SERVICES
WHICH ARE NECESSARY IN A MODERN ADVANCING COUNTRY,
IN ADDITION TO THE GOVERNMENT'S CONCERN THAT WAGE AND
SALARY EARNERS SHOULD CONTINUE TO IMPROVE THEIR TAKE-HOME
PAY, THE AUSTRALIAN COMMUNITY HAS DECIDED THAT ESSENTIAL
COMMUNITY SERVICES MUST BE PROVIDED AND MUST BE IMPROVED,
THE GOVERNMENT REJECTS THE IDEA THAT EVERY CITIZEN SHOULD
BE ENTIRELY SELF-CENTRED IN THE WAY HE DISPOSES OF HIS
INCOME AND IN HIS RELATIONSHIP TO THE WIDER COMMUNITY,
WE REJECT THE NOTION OF " EVERY MAN FOR HIMSELF", BECAUSE
THIS ATTITUDE WAS ENCOURAGED BY THE PREVIOUS GOVERNMENT
WE HAVE STILL IN MANY PARTS OF AUSTRALIA NEGLECTED SCHOOLS,
INEFFECTIVE HEALTH SERVICES, HOPELESSLY INADEQUATE
AND UNCORDINATED SYSTEMS OF PUBLIC TRANSPORT, A HUGH
BACKLOG OF UNSEWERED HOUSES AND ALL THE PROBLEMS OF
OVERCROWDING IN OUR MAIN CITIES, To ANY REASONABLE PERSON
IT MUST BE CLEAR THAT PROVIDING ESSENTIAL COMMUNITY
SERVICES IS NOT SOMETHING WHICH CAN BE DONE IN JUST A YEAR
OR TWO, PARTICULARLY AFTER 23 YEARS OF COMPLACENT NEGLECT,
OUR OPPONENTS WANT THE ORDINARY AUSTRALIAN TO THINK ONLY
OF WHAT HE PAYS IN TAXES AND TO NEGLECT THE GIANT STRIDES
THAT HAVE BEEN TAKEN BY THE AUSTRALIAN GOVERNMENT SINCE
BEING ELECTED IN DECEMBER 1972, / 12
-12-
THE BUDGET FOR 1974/ 75 ANNOUNCED AN EXPENDITURE
ON EDUCATION OF $ 1,535 MILLION, AN INCREASE OF 78 PER CENT
ON THE PREVIOUS YEAR, HEALTH EXPENDITURE ROSE BY
21 PER CENT IN 1973/ 74 AND ' IS SET TO RISE BY $ 285 MILLION
OR 30 PER CENT THIS YEAR, OUR EXPENDITURE ON SOCIAL
SECURITY AND WELFARE AMOUNTS TO NEARLY ONE QUARTER OF
BUDGET OUTLAYS AND IS EXPECTED TO REACH $ 3,441,5 MILLION
THIS YEARI AN INCREASE OF 38,3 PER CENT OVER LAST YEAR,
WHICH WAS ITSELF WELL UP ON THE PREVIOUS YEAR, OUTLAYS
ON HOUSING ARE SET TO REACH A RECORD $ 401 MILLION THIS
YEAR, COMPARED WITH $ 77 MILLION SPENT BY OUR PREDECESSORS
IN THEIR LAST YEAR IN OFFICE, EXPENDITURE ON URBAN
IMPROVEMENTS AND THE ENVIRONMENT WILL ALMOST REACH
$ 400 MILLION, A THREE-FOLD INCREASE ON LAST YEAR AND
EIGHT TIMES THE AMOUNT SPENT BY OUR PREDECESSORS IN
1972/ 73, WE HAVE ALSO TAKEN IMPORTANT STEPS IN IMPROVING
PUBLIC TRANSPORT, WATER SUPPLY AND ELECTRICITY, RETRAINING,
REGIONAL EMPLOYMENT AND IN NATIONAL COMPENSATION AND
REHABILIATION SCHEMES,
WHILE THIS LIST IS OBVIOUSLY NOT AN EXHAUSTIVE
STATEMENT I WOULD EMPHASISE THAT THESE PROGRAMS ALL SERVE
TO CHANNEL RESOURCES INTO AREAS OF MOST BENEFIT TO LOW
AND MIDDLE INCOME GROUPS, / 13
-13-
THE CHANGES IN THE PERSONAL INCOME TAX SCALE
ANNOUNCED IN THE BUDGET WILL LEAD TO A FURTHER IMPROVEMENT
IN THE REAL INCOME AND LIVING CONDITIONS OF WAGE AND
SALARY EARNERS, PARTICULARLY THOSE IN LOWER INCOME
BRACKETS, TO THE ORDINARY'AUSTRALIAN TAXPAYER, TO THOSE
WHO NEED PERSUASION ON THIS ISSUE, I MAKE AN OBVIOUS
POINT: THE HEALTH CENTRES, HOSPITALS, SCHOOLS, BETTER
TRANSPORT AND ALL THE OTHER ESSENTIAL COMMUNITY SERVICES
DO COST LARGE SUMS OF MONEY, THIS IS ALL THE MORE TRUE
AS THE AUSTRALIAN GOVERNMENT SETS OUT WITH DETERMINATION
TO MAKE UP FOR THE HOSTILITY AND NEGLECT WHICH OUR
PREDECESSORS SHOWED TOWARDS THESE COMMUNITY SERVICES,
WHO WOULD DENY HEALTH CARE AND A GOOD EDUCATION TO THE
CHILDREN OF AUSTRALIA? THIS IS A PERFECTLY FAIR QUESTION
BECAUSE THIS IS PRECISELY WHAT WOULD BE DENIED TO THE
CHILDREN OF AUSTRALIA IF THE FORMER REGIME HAD ITS WAY,
ALTHOUGH THEY TRY TO HIDE WHAT THEY ARE REALLY SAYING IT IS
NOTHING LESS THAN A PROPOSITION THAT THE AVERAGE AUSTRALIAN
FAMILY SHOULD " MAKE DO" AND SHOULD PUT UP WITH CROWDED
SCHOOLS, AN OVER-WORKED AND INEFFICIENT HEALTH SYSTEM,
CHAOTIC TRANSPORT SYSTEMS, POLLUTION OF THE ENVIRONMENT
AND THE OTHER EVILS WHICH FOLLOW IF YOU NEGLECT OUR
COMMUNITY SERVICES, I AM SURE MY MESSAGE IS PERFECTLY CLEAR,
1 ,/ 14
-14-
WHAT THE GOVERNMENT WANTS TO GET ACROSS TO THE PEOPLE
IS THIS BASIC IDEA: A DECENT AND IMPROVING STANDARD
OF LIVING IS NOT MERELY OBTAINED BY CHASING A HIGHER
LEVEL OF PERSONAL INCOME. A DECENT WAY OF LIVING
AND CONTINUING IMPROVEMENTS IN THE STANDARD OF LIVING
FOR ALL AUSTRALIAN FAMILIES IS ACHIEVED, IN FACT, IN
TWO WAYS: BY STEADY IMPROVEMENTS IN THE PURCHASING POWER
OF OUR PERSONAL INCOMES AD BY THE USE OF MODERN
COMMUNITY SERVICES WHICH MEET THE REAL NEEDS OF THE PEOPLE,
IT IS TRUE THAT RAPID PROGRESS IN HEALTH AND
EDUCATION AND OTHER AREAS IS MADE MORE DIFFICULT BY CERTAIN
CURRENT ECONOMIC PROBLEMS, WHEN, EARLIER IN THIS SPEECH,
I ASSESSED THE AUSTRALIAN SITUATION AND MADE SOME
REASONABLE INTERNATIONAL COMPARISONS, I WAS IN EFFECT
EXPRESSING MY AGREEMENT WITH THE OPENING LINES OF THE
RESOLUTION CARRIED BY THE MEETING OF ACTU UNIONS IN
SYDNEY ON 24 SEPTEMBER, THE ACTU RESOLUTION SAID THAT
" THE TWO PROBLEMS OF INCREASING INFLATION AND RISING
UNEMPLOYMENT ARE NOT UNIQUE TO AUSTRALIA". MY GOVERNMENT
WAS HEARTENED BY THE FACT THAT THE ACTU CONFERENCE OF
UNIONS EXPRESSED " ITS GENERAL SUPPORT FOR THE SOCIAL
CONCEPTS AND ECONOMIC STRATEGY CONTAINED IN THE BUDGET
IN 1974/ 75", IN RELATION TO WHAT I HAVE SAID ABOUT THE
IMPORTANCE OF PROVIDING COMMUNITY SERVICES THE GOVERNMENT
ALSO WELCOMES THE ACTU SUPPORT FOR WHAT IT DESCRIBED AS
" THE SIGNIFICANTLY INCREASED OUTLAYS UPON EDUCATION.
HEALTH, WELFARE AND URBAN AND REGIONAL DEVELOPMENT
THE ACTU RESOLUTION STATED CERTAIN POLICY GOALS
OF THE TRADE UNION MOVEMENT, WE DO NOT FIND THE LISTING
OF THOSE POLICY AIMS STRANGE OR SOMETHING WHICH NEED CAUSE
DISAGREEMENT WITH THE GOVERNMENT, IT IS PART OF THE
TRADITION OF THE TRADE UNION MOVEMENT THAT IT SHOULD
IDENTIFY THE IDEALS AND THE POLICIES WHICH IN THE FUTURE
WILL SERVE THE NEEDS OF THEIR MEMBERS,. THESE PROPOSALS
AND THE GOVERNMENT'S OWN ECONOMIC POLICY ARE TO BE
DISCUSSED AT A MEETING BETWEEN THE ACTU AND THE
GOVERNMENT, THE GOVERNMENT BELIEVES IN THE PRINCIPLE
OF CONSULTATION WITH COMMUNITY ORGANISATIONS AND
ON THE SUBJECT OF PAY FIXATION AND ECONOMIC POLICY IT
IS RELEVANT FOR THE GOVERNMENT TO HAVE DISCUSSIONS
WITH THE ACTU. THE GOVERNMENT IN THE SAME WAY HAS
CONSULTED, AND WILL CONTINUE TO CONSULT, WITH
EMPLOYER ORGANISATIONS, PRIMARY PRODUCERS AND OTHER
BODIES EXPRESSING A WHOLE RANGE OF VIEWS WITHIN THE
AUSTRALIAN COMMUNITY, / 16
-16-
THE DISCUSSIONS BETWEEN THE GOVERNMENT AND TRADE
UNION SPOKESMEN WHICH ARE PRINCIPALLY TAKING PLACE UNDER
THE CHAIRMANSHIP OF THE PRESIDENT OF THE ARBITRATION
COMMISSION, MR JUSTICE MOORE, WILL BE COVERING THE EXACT
DETAILS OF WAGE INDEXATION AND OTHER ASPECTS OF PAY FIXATION.
HOWEVER, I WANT TO TAKE THIS OPPORTUNITY TO CLEAR UP A
COMMON MISUNDERSTANDING ABOUT THE GOVERNMENT'S POLICY ON WAGES
AND SALARIES. I SPEAK NOW TO ALL OF AUSTRALIA'S WAGE AND
SALARY EARNERS-AND I SAY TO THEM THATTHE OBJECT OF THE
GOVERNMENT'S POLICY OF RESTRAINT IN THE GROWTH OF WAGES AND
OTHER INCOMES IS TO SLOW DOWN THE EXCESSIVE AND SELF-DEFEATING
ESCALATION OF MONEY INCOMES. THE GOVERNMENT NEVER INTENDS
NOR EXPECTS ANY REDUCTION IN THE PURCHASING POWER OF WAGES.
ON THE CONTRARY, THE GOVERNMENT BELIEVES THAT A SLOWER GROWTH
IN MONEY INCOMES WOULD ENHANCE THE PROSPECTS FOR FASTER GROWTH
IN REAL WAGES AND IN LIVING STANDARDS.
As I HAVE SAID, PROPOSALS ON PAY FIXATION ARE BEING
CONSIDERED BY THE CONFERENCE BEING CHAIRED BY MR JUSTICE MOORE.
THE GOVERNMENT IS REPRESENTED IN THAT CONFERENCE AND WILL MAKE
A CONSTRUCTIVE CONTRIBUTION TO PROMOTE AGREEMENT BETWEEN ALL
THE PARTIES. THE GOVERNMENT HAS DECLARED ITS SUPPORT FOR
QUARTERLY COST OF LIVING ADJUSTMENTS, COMMONLY DESCRIBED TODAY
AS INDEXATION, IN THE BELIEF THAT SUCH ARRANGEMENTS, AS PART OF
A PACKAGE, WILL HELP TO RESTRAIN THE EXCESSIVE GROWTH IN MONEY
WAGES TO WHICH I REFERRED WITHOUT DEPRIVING WAGE EARNERS OF THE
PROGRESSIVE IMPROVEMENT OF REAL EARNINGS MADE POSSIBLE BY RISING
NATIONAL PRODUCTIVITY.
-17-
I TURN NOW TO SOME REMARKS WITH PARTICULAR RELEVANCE
TO YOUR OWN ORGANISATION, PLEASE LET ME SAY THAT I WELCOME
THE OPPORTUNITY TO BE WITH YOU AT THE TIME OF YOUR FEDERAL
CONFERENCE, I AM VERY MUCH AWARE OF THE SUPPORT, IN FINANCIAL
AND MORAL TERMS, WHICH THE AUSTRALIAN LABOR PARTY HAS RECEIVED
FROM THE MWU, IN THE YEARS LEADING UP TO OUR WIN IN 1972
AND ALSO IN THE PERIOD SINCE THEN,
I AM AWARE OF YOUR SUCCESS IN EXTENDING YOUR MEMBERSHIP
RULES SO THAT YOUR UNION IS ESTABLISHED IN EFFECT AS BOTH A
CRAFT AND AN INDUSTRY ORGANISATION$ YOU HAVE COME A LONG WAY
SINCE YOUR ORGANISATION WAS ESTABLISHED IN 1915. You HAVE 13
BRANCHES IN ALL AROUND AUSTRALIA AND YOUR UNION HAS ALMOST
120 FULL-TIME EMPLOYEES IN THE VARIOUS STATES AND TERRITORIES,
YOU HAVE ALREADY ESTABLISHED A REPUTATION AS A MODERN GO-AHEAD
TRADE UNION AND THIS IS SHOWN BY YOUR EMPLOYMENT OF 10 RESEARCH
OFFICERS, YOUR DIVERSITY IN MEMBERSHIP COVERAGE IS A
REFLECTION OF THE FACT THAT YOUR TRADE UNION SERVICES SOME
360-AWARDS, DETERMINATIONS AND AGREEMENTS THROUGHOUT AUSTRALIA.
I AM HEARTENED BY THE FACT THAT YOUR UNION, WITH ITS
90,000 MEMBERS, HAS ALL ITS BRANCHES AFFILIATED WITH THE
AUSTRALIAN LABOR PARTY, / 18
-18-. I
I PAY TRIBUTE TO YOUR SUCCESS IN ENTERING INTO NO
FEWER THAN 15 AMALGAMATIONS WITH VARIOUS TRADE UNION BODIES.
MY GOVERNMENT HAS SOUGHT TO ENCOURAGE TRADE UNION AMALGAMATION
SO THAT DEMARCATION DISPUTES ARE AVOIDED. THERE IS ALSO THE
CONSIDERABLE ADVANTAGE FOR EMPLOYEES TO HAVE A LARGE MODERN
TRADE UNION WHICH CAN REPRESENT THEM IN AN EXPERT WAY AND
WHICH CAN PROVIDE ALL THE SKILLS REQUIRED FOR'THE PROCEDURES
OF NEGOTIATION AND ARBITRATION. THE. GOVERNMENT WELCOMES
SUPPORT FROM EMPLOYEE ORGANISATIONS SUCH AS YOUR OWN AND FROM
MANY OTHER GROUPS IN THE COMMUNITY WHO ARE CONTINUING TO
SUPPORT THE PROGRAM OF THE GOVERNMENT.