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EMBARGO 1 30 pm PIEST
15 July 1978
JSjSCL IA
PRIME MINISTER
FOR PRESS 15 July, 1978
ADDRESS TO THE WESTERN AUSTRALIAN.
STATE COUNCIL OF THE LIBERAL PARTY
It is good to be in the West again, after the enormous win our
Party had in the last election. In 1977 Western Australia once
again showed clearly the direction in which it wanted our country
to move, and they gave the Liberals an. unprecedented victory.
As you know, the Liberals won nine of the ten House of Representative
seats and for the first time since Federation we have six Western
Australian Liberal Senators. This was a wonderful result, which
we could not have achieved without your support and the full support
of Sir Charles Court who campaigned magnificently and relentlessly
for the return of the Government.
In 1977 we proved again that the people of Australia wanted a
Government with a Liberal philosophy.-a Government with a sense
of national purpose, a commitment to national unity a commitment
to-free enterprise and achievement and a commitment to promoting the
growth and development of this Nation; a Government committed to
seeing that all Australians have a fair go and to providing help to
those-in need while encouraging the initiative that is essential to
a vibrant nation.
Above all, Australians voted for a Government that is not indebted
to any single class or vested interest. A Government dedicated to
the National interest and that governs for all AustralIians. That
is what the Australian people want a Government that can work
together with the community to achieve our great national objectives.
By contrast, the Labor Party is in disarray once again divided
by conflicting interests, riven by factions, committed to negativism.
The ALP is so negative, that they even negate one another. Labor
may be a socialist party but there is nothing collective about
their economic statements. Mr Hayden thinks interest rates have
fallen too far; Mr Hurford says that they haven't fallen far enough.
Mr. Hayden wants to reduce significantly protection for Australian
Industry, but Mr Hurford wants to keep it up. These sorts of
statements are par for the Labor Party course they've always had
a. big handicap.
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They had the same problem during the last election. Then, in the
vain attempt to paper over their many differences, they resorted
to 5-way long-distance telephone hook-ups. Well, this year, we're
going to help the ALP we've reduced long distance telephone
charges. While on the subject of Labor Party spokesmen I should say that
there are certain standards which, in the past, all Australian
political leaders have observed. These standards Australians
overwhelmingly endorse, regardless of their Party affiliation.
When Australian political leaders are abroad they do not attack
our country's policies, nor do they undermine the fundamental
values that unite us all as Australians.
Itwas therefore unfortunate that, on his recent trip around Asia,
MrHayden chose to inform the local press that, " Australians too
often leave other countries with the impression that they are
abrasive and insensitive people". These remarks were in bad taste,
they were unnecessary and they should never have been made.
Mr-Hayden. went on to call for the withdrawal of the RAAF squadrons
inL. Malaysia because according to him, these could be interpreted as
an " imperialist intrusion". Mr Hayden disregarded the facts, for
the squadrons are only there because the Government of Malaysia
welcomes their presence.
Mr Hayden also attacked Australia's favourable trade balance with
ASEAN. He said that Australia had to " crunch this thing as quickly
as possible" and " turn around" the trading balance against ourselves.
These remarks were off-hand, ill-considered and damaging to
Australia. And they ignore the fact that Asean exports into
Australian markets have been growing at a rate of 35% per annum.
over the period 1971/ 72 to 1976/ 77.
People who assume the responsibility of political leadership should
not promote foreign criticism of Australia for party political
reasons. Mr Hayden's inexperience is no excuse for this most
regrettable display. Labor's negative approach stands in stark
contrast to this Government's positive and united approach to all
national issues.
our coherent and rational economic policies have enabled Australia
to emerge from an economic morass, a morass for which Mr Hayden,
as the ALP's favourite Treasurer, must take a major responsibility.
Under our sound economic management inflation has fallen dramatically,
interest rates have been reduced significantly and investment has
grown. We have achieved this by a rigorous control of Government
expenditure, by a responsible management of the money supply, by
arguing strongly before the Arbitration Commission for wage restraint
and by making Australia an attractive place in which to invest.
In.. preparing the Budget, we will continue this course, for only in
this way will we overcome inflation and move back to sustained
economic growth.
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We will make sure that the maximum benefit is obtained for each
dollar of public money your money. Every Government programme,
without exception, is being scrutinised. Some hard decisions have
to be made, and we shall not shirk our responsibility. We all
know from our own experience that families cannot always afford
all the things they would like to have and as a Nation, we cannot
afford to pay for all the things Governments are asked for.
A responsible Government must have the capacity to say no to
demands that outrun the resources it can reasonably expect from
taxpayers. We will not betray our obligations. Your Government.
will never seek political popularity at'the price of economic
responsibility. We have worked together; we have gained so much
and if anyone thinks we are going to turn off course now, they
mistake the quality of this Government. For we are determined
to keep on the path to lower inflation because' this is the best
guarantee that interest rates will continue coming down and that
in turn will provide the best incentive for business, small and
large, to invest and expand.
Because we have followed these policies and because you have an
enlightened and energetic Liberal Government in Western Australia
there are exciting mining developments taking place here.
Bauxite production in the Darling Ranges now exceeds that at Weipa\
and construction of a third Alumina plant is to commence this
year. With strong Commonwealth and State support, the North-West
Shelf $ 50 million planning and definition study is in progress
and production at the Agnew Nickel Mine will commence soon.
Also, expansion of facilities is underway in the Pilbara despite
the temporary downturn in Japanese demand for iron ore. offshore
petroleum explorations has been stepped up and planning for the
uranium project at Yeelirrie is at an advanced stage. Also, there
is the recent promising diamond prospect in the Kimberleys.
For those who wish to foresee Australia's long-term future, I
suggest to them " Look West" it is a marvellous tonic.
The prospects for this State are unlimited, a great part of
Australia's future lies here. The Commonwealth recognises the
particular growth potential of this State, and has backed
Western Australia in its approach for funds for the development
of the Kwinana Power station, the Muja Power station, the upgrading
of the Kwinana-Koolyanobbing railway and we are increasing
Western Australia's semi-Government borrowing programme in
recognition of this State's above-average population growth.
The development of Western Australia shows that the vital tasks
of getting-the economy back on its feet is a task in which we
must and will succeed. It requires whole-hearted cooperation
between State and Commonwealth Governments. Australians are
entitled to expect such a united effort.
The Agreement reached at the Premiers' Conference on guidelines
for infrastructure financing for new development projects was a
striking example of this cooperation and Sir Charles played a
crucial role in developing this new Commnonwealth-State initiative.
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One would not expect there to be total unanimity on all things
between seven Governments. But what is vital is that we all
work together in Australia's interest. Cooperation between
Federal and State Governments covers many fields.
Relations on offshore matters have bedevilled Commonwealth-State
relations for more than a decade.
We are now very near to a happy solution.
It was, of course, open to the Commonwealth, on the basis
of the High Court's decision, to assume all power over the
offshore area, and virtually ignore the States.
That is the course Labor wanted to take. But we took a
very different approach. We believe in cooperation for
Australia's advantage. Liberals believe in shared power, in
shared responsibility. The States will exercise increased
powers over the first three miles offshore. The Commonwealth
is also willing to share with the States responsibility for
activities such as mining and f ishing beyond the three-mile
limit., our cooperation goes further.
We have taken the unprecedented step of consulting the
States during the negotiation of international treaties
and we are prepared to insert into treaties clauses
protecting State's interests.
We have reached agreement on a National Companies and
Securities Scheme. There is close cooperation with this
state on legal aid and family law, and we are moving
to a fully cooperative Commr~ onwealth-State approach on
environmental protection. This cooperation embodies
the spirit of the new Federalism we promised when we camne to
power. As Liberals we know that ever-increasing centralised
power at Canberra may make life easier for the Commonwealth
bureaucracy but too often at the cost of the individual
many thousands of miles away in Perth or Kalgoorlie.
The prosperity of Western Australia, or the whole of Australia,
depends upon trade, upon markets overseas. Sir Charles Court
has tirelessly sought markets overseas to advance the great
mining industries of this State. The Commonwealth Government
is seeking to promote a new export consciousness throughout
all Australian industry.
We are providing new and significant export . incentives and
tax concessions and have undertaken a major campaign to
expand world markets and Australia's access to. them.
We have pursued this course in the knowledge that Australia,
more than many nations, depends on international trade.
A substantially higher rate of growth in world markets
would greatly speed up the rate of our own recovery, and
the rate at which new jobs can be created in Australia.
In my recent discussions in Japan, the United States
and Europe, I have been adding Australia's weight to
those who want to get the world economy moving again
a movement which can only come about if we expand world
trade and halt the spread of unreasonable protectionism.
We have been working for a positive and wide-ranging
agreement at the Geneva Multilateral Trade Negotiations the MTN.
Doug Anthony and Vic Garland have spent the last fortnight
there directly arguing Australia's case. We have insisted
that the MTN must be balanced and include agriculture
as well as industrial products.
President Carter shares these views, and in a recent letter
to me he said about the MTN:
" I will not consider these negotiations a success unless they
lead us toward a significant liberalisation of world trade in
agricultural products." These negotiations have just passeda
critical phase they will be resumed in the European autumn.
Meanwhile, the Bonn Summit beginning tomorrow will review
the situation and major participants -especially the EEC
will have to re-appraise their negotiating mandates.
Australia supported strongly by. the USA has clearly
established a position whereby the MTN must provide additional
access for agriculture, and a code of behaviour on export
subsidies on agricultural products. In particular both
in the MTN itself and on a bilateral level we have been
pressing the European Community to reduce its trade barriers.
We have stated our position
without equivocation and I believe we have had some success
on this front. The justice of Australia's case is being
increasingly recognised by a growing body of world opinion.
In July, The Economist reported that the case for a change
to the EEC's approach has " been most powerfully put by the
United States; most justly by countries such as Australia
and New Zealand".
Just last week, the British Foreign Secretary, Dr. Owen,
told a meeting in Brussels that the EEC was " highly protectionist
particularly of course in agriculture". He said of the EEC:
" We are causing very considerable distortions in the world
agricultural industries because of protectionist policies".
" Some people are now beginning to feel the full force of
it because Australia, New Zealand and the United States are
campaigning " 1 A1
The British Prime minister, Mr Callaghan, said in June that:
" The Community's Common Agricultural Policy, for example,
needs major reform it is like the cuckoo depriving
the consumer of access to cheaper goods, gobbling up an
unfair proportion of the Community's budget and starving
a number of more worthwhile fledglings in the Community's nest".
The EEC will find it even more costly to ignore the
fairness and economic good sense of Australia's case.
No less than 75 percent of the total EEC budget goes on
agriculture yet agriculture produces only 5percent of their
GDP. The cost of the EEC agricultural support and
subsidy budget is now in excess of $ 8 billion about
for each EEC taxpayer who as a consumer is also burdened
with having to pay double to treble world prices for his
foodstuffs.
The problem for Australia is not only one of lack
of access. There-is also the staggering magniture of new and
growing EEC agricultural export subsidies.
In 1978, EEC export subsidies on items which compete with
Australian agricultural products in overseas will total about
$ 4 billion.
In beef, 150,000 tonnes are to be dumped with export subsidies
of $ 1,000 per tonne; butter 500,000 tonnes subsidies
of $ 2,000 per tonne; wheat and flour $ 1 billion in subsidies;
sugar 3 million tonnes with $ 800 million in subsidies.
These subsidies range from double to treble the world price
of these commodities. These massive subsidised exports have
made major inroads into Australia's markets in Asia, the
Middle East and South America. Where once we supplied
the whole of the market such as flour to Sri Lanka
we have been wiped out. Is it any wonder some of our
primary industries are in difficulty when a bottomless purse
provided by 260 million people is used to subsidise
producers, driving us out of markets by destroying commercial
trading.
I cannot understand people who say we should accept the
EEC's policies on these matters. I cannot understand
the Australian Labor Party counsels of despair except that
it is a party to which despair is second nature.
They attack the Government for trying to get a fair go for
Australia. They would have us meekly accept not only
exclusion from the world's largest, richest market, but
also massive dumping of surpluses on our other marketsmarkets
important for the well-being of many of our industries.
That is not the path your Government will take. We have no
intention of abandoning Australia's national interest in this
or any other area.
At the same time we have not allowed our commitment to getting
a fair go for Australia in the EEC to blunt the momentum of
our movement into other markets. We have consistently
encouraged Australian exporters and given particular attention
to the growing markets in the Middle East and
South East Asia and our trade with new markets has been
expanding rapidly in recent years.
In 1976-77 our exports to ASEAN countries were $ 772 million
a 100 percent increase over 1972-73. In 1976-77 our exports
to South Korea were $ 191 million an increase of 260 percent
over 1972-73. Our exports to Iran in 1976-77 were $ 150 millionan
increase of 480 percent over 1972-73.
We are committed to sustaining our thrust into available markets
and our initiatives include new export incentive arrangements,
strengthening the Trade Commissioner service, the
Australia/ ASEAN Industrial Cooperation Conference, the
Commonwealth Regional Consultative Group on Trade,
the ASEAN/ Australia Consultative Committee, and we are
establishing the Overseas Projects Corporation.
We will continue to expand our trade into those markets
available to us and keep fighting to get into markets
that are closed to us.
I have found an increasing willingness by most nations to adopt
a more flexible and practical approach to the demands of
expanding world trade. There is universal. concern to see that
present sluggish world growth rates are improved.
The ongoing Multilateral Trade Negotiations and the impetus
to them from the Bonn Summit Conference will be6 of enormous
importance to the trading world for the rest of this century.
The nations gathered together have the power to take the world
forward to establish a new, improved trading system, which
will expand markets and employment around the world.
If nations lack the wit, the will, the determination to move
forward they run the risk of moving backward to the tragic
beggar-thy-neighbour policies of the 1930' s
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Indeed, present European attempts to allow selection and
discriminatory measures against imports underscore the
real gravity of that danger. Whatever the outcome at
Geneva, because of the domestic economic position of many
of the world's major economies, the international trading
scene is likely to remain difficult, not just for months
but for years.
At this moment, the most important thing that we can do
for Australia is to put our economy to rights, to correct
the grave imbalances of the Labor years. we have made
considerable progress, but much remains to be done.
Together we can make further progress, by using to the
full our natural resources, and our own capacities our
skill, dedication and inventiveness. We need to strengthen
our great industries, our productive and competitive
sinews.
We need to offer stability and predictability in decision
making, and above all we need to utilise the capacity and
potential as yet untapped in our nation. If we do so
we will be better able to withstand whatever stresses
developments in international trade impose on our nation.
We will be better able to take advantage of whatever
opportunities are available.
Make no mistake, we have an opportunity to make Australia
an example to the world an example of how dedication
and a determination to overcome economic problems can
enhance the life of our people to join that narrow band
of countries where decisions are taken because they are right,
not because they are thought to be politically popular.
Such government is only possible where there is a respect
by the Government for the people, and where the Government
has earned the respect of the people.
our pulrpose is to create an Australia in which every
Australian shares in a great national pride. working
together in support of our common objectives.
The opportunities are great the possibilities-exciting.
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