EMBARGO: 7.00 p. m.
FOR PRESS 30 APRIL 1978
ELECTORATE TALK
This week's announcement of an increase of only 1.3 percent irk
the Consumer Price Index is more welcome economic news for Australia.
It is certainly good news for business, housewives, farmers all
sections of the community.
This quarter's increase in the CPI indicates that we are in the
best position for over five years to overcome the evil of inflation.
The figure confirms that Australia's inflation rate is running at
about 8 percent. This is a significant improvement.
We are now down to about the levels of our overseas trading
partners this can only benefit our export and manufacturing
industries as it will improve their competitive position.
Clearly, this figure again shows that our economic policies
consistently applied from day one have been the right policies
for Australia.
Australia any country will always have economic problems.
They are a fact of life in a changing world. we have shown that
Australia now has a government able to competently tackle the
problems and overcome them. We have shown that we will not run away
from problems, and pretend they do not exist. We have spelt them
out in plain language and set a firm course to overcome them.
We have been following that course since late 1975 I think with
some success.
There is simply no realistic alternative. The business community
for one has given us its support as it comes to recognise that
there are no simple and speedy solutions to the fundamental
imbalances with which our economy is still beset. We have never
stopped preaching firm control of government spending, finely
balanced monetary policies and wage restraint.
of course, this 1.3 percent figure is not the end of the line in
our fight against inflation. The Government is well aware that
inflation must continue to fall before we can have full economic
recovery, with job opportunities for all Australians who want to work.
We have achieved notable success in our battle against inflation
but much work remains to be done.
With our inflation rate down at less than half the peak of the
Labor years, the financial and economic conditions are steadily
improving for the return of investor confidence. The Government
has stressed that a sustained fall in inflation is a pre-requisite
for greater business investment by both Australian and overseas
companies. It is encouraging to see this development taking place.
The conditions are also steadily improving for young Australians
seeking to buy and build their own homes. I know that the high
monthly repayments have put homes out of the reach of many
thousands of young couples. That has begun to change and as
inflation keeps falling the conditicns will be established for a
further reduction which will assist families everywhere.
The Government will continue with its economic policies. We will
not relax and not be side-trached. Any drift away from firm,
responsible economic policies designed to reduce inflation and
encourage investment and activity would seriously damage confidence
both of business and consumers. That would set back economic
recovery. The Government is determined to continue with its firm and responsible
economic policies. We utterly reject any course that risks the
hard won gains already made.