MINISTR CAH4JFi4A
FOR PRESS 27 NOVEM4BER, 1977
LAUNCESTON~ LIBERAL PARTY BAR-B-QUE
it is great to be in Tasmania. Tasmania always receives special.
attention from this government. The Tasmanian Liberal team in.
the House is the best team that Tasmania has ever had in
the Federal Parliament. I know. from sitting in. the House at
Question Time just how effectively Kevin Newman in the ' nity
Max Burr, Ray Groom, Bruce Goodluck and 1-sichael Hodgmnan from
Backbench pursue Tasmania's interests.
our economy is now on~ the move. After two years hard work, we hav04
managed to regain control of expenciture, to moderate wage increases
to* reduce industrial disputes-. Inflation has been reduced to9%
0 and it's falling, interest rates are falling and investment is.
up. We are ready to move into a new era of development with
$ 6 Billion of investment. From February-unemployment will fal: l'
and ) ieep falling.
We have provided wide ranging tax cuts, historic tax reforms which
have meant that $ 3,300 million in personal tax will be sav-d. in. our:-
first two budgets. A further $ 1,000 million bar, been saved by
business in that time. By putting money directly into the-hands of
consumers, our Februatry tax cuts will create more jobs, because.. as
demand rises, employers are encouraged to hire more people, and.
by reducing-ma ginal tax rates, incentive and production are increase
Our February tax cuts will* inject an extra $ 26.7 million a week into
the economy. Almost a quarter of a million low income earners,
including tens of thousands of pensioners, now paying tax will pay
no tax at all, in lime with th~ e government's general policy of.
helping those in need. This will increase consumer demand and
business activity. This will. create more jobs it ; will not
boost inflation because it is a tax. cut, not a wage* rise.
Labor wants to do away with the F3ebruary tax cuts; tax. cuts which
will create more jobs; and refuses to cow-wit itself to tax:
indexation. To pay for their abolition of payroll tax, they-have
to raise $ 850 million in the first half of 1978, * and $ 1900 million
in 1978/ 79.
They have said that they will pay for this by repealing our-February,
tax cuts; even then~ they would have to raise: an additional $ 880 mill:,
That's why the ALP won't commit themselvea on tax indexationk.
Mr WMitlam would have to take aw~ ay at least $ 6 u week from the man
on average earnings-Labor would end the jobs that the tax cuts
will bring and rip off $ 2,750 million from the people of Australia.
Mr Dunstan knows that the abolition of payroll tax won't increase
employment. He's said that " The Government has already tried
a payroll tax remission scheme and found that it does not create
employment". 2
-2-
A recent survey of large employers revealed that not one
company surveyed was prepared to forecast any inorease in their
own employment levels if payroll tax were abolished. Trhe survey
showed that, on the contrary, employers considered M-Whitlan
and Mr Hlawke's policy of full wage indexation would make the
capacity of business to create new jobs worse not better.
Labor's scheme would hurt the self-employed, and many small
businessmen who are already ex,-empt from payroll tax but.. w6uld
be lumbered with higher wage costs and higher personal tax"
conunitments. It would harm all Australians.
Labor have -no coherent economic policy each on4e of Mr Whitlam's
statements on tax indexation contradicts the statement be
made last. Mr Willis and Mr Hayden contradicted one another0
and the L~ eader of the opposition. Mrx Jjurford -the Shadow Treasur:.
has to find out what Labor's latest position on tax indexation
is from the newspapers.
On wage indexation, Labor i. s no less' disorganised in its policy0
speech. Mr Whitlam said Labor would "; cestore integrity to the
wage indexation guidelines". This mean! 5 that he was conwitted
to backing unions' claims for maximum wage increases.
Only . a few houirs aftez-AMr Whitlamla policy speech, Mr Hayden said
that Mx Witlam's formula meant support for full wage index~ Ation,
but only for people on less than average weeicly earnings.
Mr Wbitlam replied that Labor wanted full wage indexation for
everyone,. and Mr ) 3ayden confessed he night be wrong: " I feel
I'm on shaky ground", he said. He said questions on wage
indexation should be directed to Mr Willis; " I work in the
economic area" " It's a demarcation problem". Mr Witlam directed
his press secretary to say: " There was no contradiction" between
himself and -Mr Hayden on wnage indexatio".
They don't care how many people are thrown out-of work as a
result of excessive wage demands. Mr Ilayden is abdicating
responsibility for wages policy despite the fact -that he has
said that unreasonable wage demands have caused serious
economic difficulties.
Blut that' s all forgotten when th * e unions crack the whip>. The
Labor Party could do nothing without the agreement of the trade
union movement. Mzi Hawke admitted this on Friday when he
announced that Labor would have to discuss the issue of wage
indexation " with the trade union movement". Mir Hawke wouldn't
try that sort of thing on this Government he knows that we won't
abdicate our responsibilities.
Labor's abdication on economic policy its surrender of one of
the main responsibilities of Government to the unions is clear.
-It happened between 1972 and 1975
They would do it all over again
Only a Liberal Government has no vested interest in kow-towing
to trade unions. We have passed laws which bring a creater
measure of fairness and commonsense to indust-rial relations in
th-is country. Thes~ e laws. give more protection to individual
unionists and to the general publi,, tfho have been so-outrageously
harmed by industrial' disruption in the past. These laws give
rank and file xuiionists the ochan1ce to have-their voices heard in
the way their unions are run.
We have made secret postal ballots compulsory for union OaLeotons.
We have set up the Industrial Reations tureau to protect the
public interest and to act as an industrial ombudiuman.. Unions are
now required to report annually on their financial affairs to their
members. We are protecting individuals against being forced to joi
unions against their will.. E~ arlier tliis month, furthber amendments
were made to thie Conciliation and Arbitration Act which. axe of
particular relevance to Tasmania. The Industrial Court can now.
partially or fully dezeqister a union if it hinders or interfereS,
with overseas or interstate trade a-nd comnmerce.; or if it h-inders.
or intarfe-res with any service provided by the Commonwealth, a State
or any Govexnment Authocrity,.
All this legislation is now in force, protecting Tasmania against
industrial' disruption whbicb might cut off thid State. from i-he
mainland, or cut off vital supplies from or to the mainlaud.
The Labor Party would repeal all the industrial leg islation. . that
protects individuals and protects the public interest. T'hey
would unleash the industrial. disputes that cost the country 6.2
million working days in 1974. Only a Liberal Government can give
Tasmania the protection from industrial disruption which this State
needs. I now wish to mention the special initiatives which the Government
has intzoduced to help Tasmania.
The freight equalisation scheme, both -north-bound and south-bound,
is vital to Tasmania, for it reniioves Tasmania ' s freight disadvantagi
It will cost the Goverrnent $ 23 million this financial yeaIr.
The APPM multi-million dollar project at Blurnie would not have
occurred except for this scheme ( and thbe Goverrnent' a investment
allowance).
The Government has also contr~ ibuted over $ 20 million towards the
cost of the Launceston G~ neral Hospital. We have also
contributed a further $ 20 million to assist the Tasmanian Railways.
The Maritime College in Launiceston will conumence construction in
the Pew year.
The Goveriiment has always given a high priority to rural industry
throughout Australia. We have given considerable assistance to
the beef industry by obtaining increased acodess to overseas
mrkets, by ending the Labor Party I meat inspection. charge-, by
providing a cash subsidy to beef. growers for disease control
measures and spayig measures, by investigating a better marketing
system for beef and by spending very large sums indeed in the
cauipaign to eradicate brucellosis and tuberculosis in cattle.
The Government has also helped the dairying industry -by extendinm
underwriting arrangements and helping to Increase overseas markeV
particularly the Japanese cheese market. we have-helped the wool
industry by raising thbe minimum reserve price and guaranteeing that
higher minim-= price for two years. We have also promised, in
co-operation with the Iiustzralian Wool Council and the Australiato
Wool Industry conference, to investigate ways of improving theW
wool marketing system.
in the light of the Callaghan Report, which we omissioned,
Senator Cotton, and X~ evin' Newman have announced a ten-point plan
to implement major recommendations of that report. We are
studying as a matter of urgency the feasibility-of a pilot
induatkial etate in the La unceston area..
Senator Carrick, the Minister for Education, is examining ways
of establishing more specialist courses of national interest fo@
the Tasmtanian College of Advanced Education at Launceston. The
* Goverrnent'policy of-buyi~ ng Australian. goods. will be applied to
the fullest possible extent in Tasmania.
The Minister for Defence, Jim Killen, has commenced a reiwof@
defenace activities in Tasmania. The Minister for Productivity,
Ian Macphee, is undertaking a review of the Launceston Preoision
* Tool Annexe with a View to expanding its operations. The
Government is also examining ways to help the forestry, f ishing
and tourist industries. the new Decentralisation Assistance
Board will examine Tasmanian projects, such as a new convention
centre for La-unceston, with a view to Commonwealth financial
assistance. The Public Service Board will report to me on the scope available
for relocation of commonwealth activities in Tasmania. The Board
will particularly examine the feasibility of accelerating the
transfer of the Antarctic Division to Kingston. The Secretariat
of the Advisory Council on Intergovernmental. Relations has of
course already been established in Hobart.
in my policy speech last week, I also outlined rnmerous other
programmnes which will be of assistance to Tasmanians. The
Niational Water Resources Programmne will assist town and rural
water supplies throughout Australia. Our progralmmes to boost
the standards of public urban transport will also helpfrTasmanians.
What would Labor do for Tasmania?
The freight equalisation scheme is thxeatened by Labor. Mr Burford
said in H~ obart on 24* June 1976 that the freight equalisation scheme
was not effective. This extraordinary statement shows how much
Labor iscompletely out of touch with the needs of Tasmanians.
Under Labor, the " PMI project at Burnie would be threatened. The
economicsof that project are dependent on the continuation of the
freight equalisation. scheme and the investment allowance. Under
Labor, both these subsidies may be removed.
Under Labor, Tasmania could not expect any decentralisation
assistance. Labor would redirect such funds; to mainland " growth
centres". The Tasmanian textiles industry would be threat-ened. too.
The vital protection which we ha%-e given and maintained, Labor
would remove. In. July, Mr Whitlaii said to the, National Press
club: " There is no doubt that Australian industry is excessively
protected tbat is the basic trouble with our manufacturig
industry."
Th-is month, Senator Wriedt said at Rockhampton ( on 6 November),
0 Labor would4 reduce tariffs ' immuediately and he made it clear this
would proceed regardless of', the adverse effects this would have on
unemployment The position is clear-Labor would again ig-nore the Tasmanan
0 State Government and the interests of* a11 Tasmaniafla
A Liberal Government is the best Government for Tasmania -no
Government has done more for Tasmanians.
A Liberal Government is thd best Government for all Australians
we are doing the job we were elected to do, and we will keep on.-
doingj it.