-AUL
PRIME MINISTER
FOR PRESS 12 NOVEMBER 1978
ADDRESS TO THE NATION
Last week in Melbourne all the State Premiers, the Federal
Treasurer, John Howard, and myself came to an agreement that
will have far reaching consequences for the future development
of all the States of Australia.
We were able to do this only because of the hard decisions
we have taken over recent years, and because of the progress
we have already made towards economic recovery.
Tonight I want to report to you about that progress, and
about the way in which the Government, your Government, sees
the years ahead.
There are already significant benefits from the steady course
we have set. The runs are on the board.
Inflation is down, and it is falling. Interest rates are
coming down last February there were cuts in interest rates
affecting home buyers, and just ten days ago there were -other
cuts affecting a wide range of borrowers. Business confidence
is returning. Local and overseas investment is increasing.
Unfortunately, unemployment is still far too high. That is of
great concern to me, and I know it is of concern to all of you.
It is because the Government is so concerned that we are
prepared to take the hard, unpopular decisions that we know
are right for Australia. We are not prepared to take those
decisions that might appear to help, but which we know will not.
Actions that we have already taken are enabling Australian
manufacturing industry to get back into export markets.
How many of you know that Australian companies are exporting
furniture to Sweden, and colour television sets are being
exported into the toughest market in the world to Hong Kong
against Japanese competition. Australian-built, Australiandesigned
fishing vessels are being exported to a number of
countries in South-East Asia. At least one major motor
manufacturer is re-building its export organisation.
All this is possible only because inflation is down, because
costs have stabilised, and Australian manufacturing industry
is more competitive in our own market and in export markets. / 2
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of course, our rmining industry is also moving ahead. The oil
pricing decision we took about 15 or 16 months ago has resulted
in two companies alone committing themselves to $ 1,000 million
worth of development and exploration in Bass Strait and at
Exmouth Gulf off the Western Australian coast.
That means more oil reserves. It means more jobs for Australians.
The Ranger Agreement, reached with the Northern Land Council
last week, means that Australia will be able to meet energy
commitmaents in an energy short world. That will mean a great
deal for development, and for employment, in the Northern
Territory. For the first time in years, farmers are looking to the future
with optimism. Just on four years ago their costs increased by
about 30% in one year. Now, their costs are stabilising, and
their returns from wool, sheep, from beef and wheat are all
good, much better than they have been for a long while. Farmers
right across Australia are facing one of the best seasons they
have had in many years.
All that is good news, not only for farmers, but also for
people who live in country towns, in the cities--for those
in the industries servicing the farming community.
We often forget the very real interdependence between people
who live on the farms and in the great cities of Australia.
All of this points to a more prosperous future. If Australians
are prepared to get up and have a go, we can realise that
future, and take on the challenge of the 1980' s.
Governments have a key role to play. There is much that Governments
must do. We have to get inflation down even further. We must keep
the economy on a firm and steady course, undeterred by results in
a few popularity polls. At the same time, Commonwealth and States
must provide basic support for industry: power, transport, ports,
pipelines, water supplies, all so vital to industry and industry's
expansion. Your Federal Government has always been committed to working in
co-operation with the StCates, and last week we took that
commitment to Federalism a significant stage further. After
two years of negotiations, at a special Loan Council meeting,
the States were given authority to borrow overseas to assist
major developing projects. Earlier in the year, in June, there
was agreement about the guidelines. Now all seven Governments,
the States and the Commonwealth, acting together have taken
decisions that will enable major development works to proceed.
In NSW and Queensland, coal export facilities will be vastly
improved. In all the Eastern States there will be a great
expansion of power generation, as well as in the Pilbara of
Western Austalia. Hydro-electric and water supplies in Tasmania
will be greatly improved. For Western Australia we have taken
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decisions that will encourage the great North-West Shelf
development to go ahead, and also an alumina project.
in South Australia, where there was some concern about the
future of industrial development, we have taken decisions that
will enable the State Government to construct power supplies
and pipelines that will encourage a great petrochemical plant
at Redcliffe.
Again, in Melbourne, a great World Trade Centre will be built
that will encourage trade, to and from Australia, around the
world. It was a rare show of unity between Governments acting
together to advance Australia's cause. All seven Governments
have worked and planned together to encourage Australia's
development. It was an historic meeting.
With that kind of co-operation Australians can face the 1980' s
with enormous confidence.
The Government has great responsibilities, and we are determined
to pursue them. But Government alone cannot achieve the Australia
we all want. Only Government acting in partnership with all
its citizens can create the Australia of which we dream.
With that kind of partnership, I have unbounded faith in the
future of Australia. The 1980' s will be years of optimism,
years of development. Certainly there will still be problems,
I imagine there always are for Governments. And much remains
to be done.
But, with confidence in ourselves, with faith in Austral~ ia,
the 1980' s will be years of growth. They will be years of
prosperity. They will be years of excitement, for al1l Australians.