PRIMAE MINISTER L13R
FOR MEDIA January 14,
ADDRESS TO THE
NATIONAL CONVENTION OF THE YOUNG LIBERAL
MOVEMENT OF AUSTRALIA
I am g rateful to you, Mr President, and to your Executive,
for the invitation to open this-twelfth annual convention, and
to address you.
Of course, this convention has a special significance. We have
not ' only entered a new year, but also a new decade. The future
invites us to action and challenges us with opportunity.
But above-all, this is an election year in which we must again
assert the continuing relevance and capacity of Liberalism to
meet the emerging challenges.
As we confront new tests as a Party, a Government, a nation,
our confidence in what we can achieve is strengthened by the
significant progress we have made in the last four years. This
progress has been won by the Government accepting its resoonsibilitics.
, It has been assisted by a nation, often confronted with difficult
choices. But. to-eether we have learnt tChat di-. 7fficult decisions, difficultchoices,
often provide the only responsible, solutions. . Now, -at
the end of four years of respo~ nsible economic management, our
achievements are significant. In many areas they are being
internationally acknowledged.
Liberalism, called upon in the middle 70' s by the Australian
electorate to inject commonsense and commitment into the Australian
nation and its economy, has fashioned a magnificent response.
For four years, we have waged the fight against inflation, and our
success in absolute terms has-been significant. In terms relative
to some of our major trading partners, our improvement has also-,
been significant. But this fight must continue, even though we
start the 80' s with a relatively better record against inflation
than countries like Great Britain and the United States of America.
Because we have. coritained costs, our exports are more competitive
on world markets. This provides incentives for increasing factory
Iproduction. Business investment is-str-engthening. The gross value
of rural output shows a dramatic improvement on levels of two years
ago. / 2
-2
And while unemployment is still too high, figures released only
last week show that the numbers of civilian employees, that is,
wage and salary earners,* in Australia, passed the 5 million mark
for the first time. Inthe year ended October 31, there were
81 thousand more wage and salary earners in employment than was
the. case a year ago, and the figures for over-all employment
are even higher than this.
These are significant achievements. To them we can add our national
endowments of raw materials and energy resources in a world
experiencing deficiencies in both.
In my election speech in 1977, I announced to the Australian
people that, " Australia is ready to go with $ 6,000 million
of development". In the two ' financial years which followed
that statement, actual investment was even higher than I predicted,
at $ 6,400 million.
I indicated then that " in the coming three years we can look to
other vast developments". This has now been proven. Most recent
figures indicate that $ 16.5 billion wotth of mining and manufacturing
projects are either about to go ahead in Australia, or are in
the final stages of preparation. A massive increase on the level
of two years ago.
The Government's dedication to economic growth has produced results.
This. is the measure of business response, here and overseas, to
our hard-won and vastly improved economic position. 11ow much
more important this is today in the politically delicate international
situation which is emerging. It is only from a position of economic
strength that a nation can command international and diplomatic
influence. How much more significant it is, in the light of
international circumstances, that in the last four years we have
arrested and reversed Australia's economic decline.
Mistakenly, all of this prompts cries of complacency about us being
the lucky country. The fact that we cannot rely on luck was
adequately demonstbrated in tL-he Labor years. It was then proven
conclusively that in spite of, our great-endowments, . all things:
do not come to those who simply sit and wait.
Rather, we must pursue economic, individual,. and nationa. success.
We have to work to make a better nation arid the only way we can do
this-is to implement policies-which will increase our total
national wealth. Our Party seeks its continuing claim to govern in
the 80' s on its capacity to secure and enhance conditions for economic
growth. This goal, central to national well-being, was beyond the
capacity of the Whitlam governmeant to realise; the means for achieving
economic growth, the priorities which lead to it, are beyond the
understanding of t~ he Labor Party now.
Last week, the Leader of the Opposition felt so ag grieved that I,
as Prime Minister, had addressed the nation about the great
opportunities before us, that he felt it necessary to respond.
In his reponse, Mr Hayden posed as the new economic miracle man.
His promise was no more than an economic joke.
In a rare concession, he at last acknowledged that " we should
get inflation under contro'TIn the same breath he promised
massive expenditure: " free medical insurance for mothers-and
3
children"; " your family pay packet ( increased) by an average of
$ 17 a week"; " major Labor. intensive capital works in all States";
" a national community services corps".
Time did not allow further detailing by Mr Hayden of a long list
of expenditure promises he is already committed to. Yet no sooner
had he finished promising this expenditure, when he told us,
" There must be cuts in indirect taxeg, and substantial additional
cuts in income tax and sales tax".
By this time,' the audience realised that Mr Hayden's joke was at
their expense. Here was the old Labor prescription all over again.
Showing contempt for the economic well-being of Australia;
contemptuous of the intelligence of all Australians, he promised
increased expenditure and lower taxation while maintaining the
pretence that inflation would be reduced.
We would all be enriched if Mr Hayden would explain to this nation,
and the nations of the world, ho ' T this could be done. There is
no cargo cult creed.
You cannot have increased expenditure and decreased taxation
without massive inflation and massive defidits. Margaret Thatcher
put it well this week when she said, " Pennies don't come from
heayen, they have to be earned here on earth".
Mr Hayden compounded his economic fantasies when he announced in
his broadcast that we should reduce the price of petrol. Yet,
in March; 1979, Mr Hayden was asked on the ABC, " Can we ever remain
a haven for cheaper petrol?". His answer, " No-one can argue against
the economic principles, the sound economic principles, in support
of parity pricing, import parity pricing of petroleum products".
The London Economist of December 22 last, arguing about the
validity of increasing petrol prices, said, The West's citizens
can be chi vied and cozened into energy conservation, provided
the prices signal is pointing in the same direction".
In the London Sunday Times of December 16 last, the economics editor
said, " Rising prices of energy in the 70' s were indeed necessary....
to hold back demand and provide incentives to supply".
He asked, " Are higher oil prices necessary to bring forth more
energy?". To which he answered', " Many oil fields would n0t have-*
been viable if real oil prices had not risen."
All this wisdom was wasted on Mr Hayden. The Labor Party, the
tax-mongers of Australia's wealth in the mid-70' s; the doom-mongers
of Australia's future; now-seek to become the waste-mongers of
Australia's energy.
We are in a privileged position in relation to supply and cost of
petrol. We must match this privilege with responsibility.
The United States has already announced, and is acting upon, its
commitment to world parity pricing, as America, too, finds limited
insulation from the world energy problem. Our petrol price of
around 29½ a litre still compares more than favourably with Britain
51½; Germany 57; Japan 63½ a litre; France 68½; and Itay
4-
In fact, an Australian motorist purchasing 40 litres of petrol
a week in 1959 would have spent 7.8% of average weekJ-ly earnings.
In 1969, the same amount of petrol would have cost only 5.1% of
average weekly earnings. In 1979, a motorist purchasing 40 litres
of petrol a week would spend even less of average weekly
earnings.. To gain any credibility onthe petrol pricing question, the Opposition
will need to move their argument from myth to reality. It may
be slick politics to offer cheap petrol; to talk in slogans
about breaking with the import parity system. Has no-one
in the Labor Party thought this through?
Let us take a realistic look at what Labor's so-called cheaper
petrol means. It means that this generation of Australians
would have an almost unlimited right to use up our scarce fuel reserves
It means that, as a nation,* we should have-no responsibility
to the energy needs of the next generation.. It means that industry
would be enticed to postpone new technologies of conservation and
replacement rather than be * encouraged to move into more viable
forms of energy. It means that development and exploration would
be inhibited.
All of this means that Australian reserves would run down, and
Australia would become a defenceless victim of the international
oil cartel beggars for fuel, not just at parity pricing,
but even pot prices; prices which cash in on factors of limited
supply and unlimited demand.
There is rno escaping the reality that price must be used as a
barometer of scarcity. Our decision on parity pricing represents
further proof that we have to look to the most difficult decisions
for the most responsible solutions.
What Labor is promising is not just a selfish, narrow-minded,
inward-looking policy. It is a policy which. pays no regard to
Australia's future needs and indicates the depth to which Labor
s%, ill sink in an attempt to purchase votes.
I am confident that the judgment of the'Australian people reflects
their concern also for Australia's-future. The cynicism of
the Labor Party about the Australian voter is reflected in -their
recently-published views that swinging'voters are, and-I quote,
" Basically ignorant and indifferent about politics ill-informed
and generally pretty-selfish".
I believe that on the petrol issue, Australians-are capable of
distinguishing between the myth and the reality of future
economic growth in Australia. Our dedication to promoting economic
growth is proven and unyielding, not because it is inherently more
important than other personal and social goals, but because without
economic growth the aspirations-of an advanced society cannot be
realised. Without economic growth, our goals of creating more jobs;
Improving welfare; continuing support for the arts and cultural
activities; providing a life for all Aus-tralians which maximises
choice, freedom, opportunity and achievement these goals cannot be
achieved without sustainable economic growth.
if, as under the Whitlamxn years, goals are pursued without containing
inflation, without regard for productivity or economic growth, then
the result is that while one goal might be achieved, it is only
achieved at the expense or impoverishment of something or someone else
As Professor Henderson said in his recent report on poverty in
Australia, an inflationary spiral does more damage to poor
people than the assistance provided by reforms".
Because there ' are inherent threats to the well-being of our
community in the policies and platform of the Labor Party, we
must pronounce our achievements and pursue our future plan
with-purpose and persistence. We must harness all our talents, our
energy,, our enthusiasm, and those of all Australians.
Success in the 80' s, as in recent years-, will require the right
policies from Government, coupled to a willingness amongst us
all to use our freedom profitably in new enterprises. All-Australians
have learnt that the policies which allo-w for the enterprise which
brings achievement; the policies which provide appropriate
rewards for risk-taking in the pursuit of achievement; these policies
can only be forthcoming from a Liberal Government. They have been
possible under Liberal government because Liberalism rejects the
notion that a Government growing in size and power, and concentrated
in Canberra, is the answer to a better life for all Australians.
In the F. E. Chamberlain lecture in March last year, Mr Hayden stated
clearly that, " The challenge to Socialism is the rapid spread
of philosophies based on lower taxes and smdller government.."
Let us unapologetically proclaim that Liberalism will continue
with its challenge. The most powerful force for progress and
achievement in the future is the individual who, by his own efforts,
his own decisions, his own volition, charts his-way through this new
decade. Your role, as in the past, will be significant. Like any organisation
you face your own challenges., They will increase accordi-ng to the
level of responsibility you accept. One of our challenges isto
see that young people see our Party and the Young Liberal movement
as relievant* to LEheir-needs.
. We. all sometimes need reminding that the Party does-not exist for
our persontal advancement-or-benefit, but rather as an organisation
through which Australia can be responsibly and well-governed for
the advantage of all Australians. It is through our own example
that other Australians-will be encouraged to accept our principles,
and to join with us in the fight for their political ascendancy.
One of the great strengths of this annual convention is the forum
that it provides for discus-sion and debate about issues* in which
you have a special expertise. Often, this expertise derives from
the particular qualities, talents and experiences you have as part
of Australia's youth. Especially is this true on the question of
education, and on the vexed question of youth unemployment.
These problems are overstated by some, underestimated by others.
The solutions to them are'never simple. The educa ' tion. o f our youth
has gathered momentum as an urgent priority since the war. As a
top priority of governmenbs, it has won universal acceptance. / 6
-6
In 1961, the then President of the United States said, " Our progress
as a nation can be no swifter than our progress in education our
hopes for economic growth and the demand. for citizenship itsel. f
require the maximum development of every young person's-capacity".
Implicit in this statement was the belief that education was the
vehicle for the development of these capacities. It was legitimately
argued that the human mind was our most fundamental resource; that the'
basic educational training of it was the most sophisticated preparatior
for professional.. work.
Fdr more than two decades this view has been shared by Australian
governments and Australian parents. In the 1970/ 71 financial year,
the total Commonwealth and State government expenditure on schools
in Australia was $ 840 million.
By this financial year, this total had risen to $ 4,049 million.
This-explosion occurred against a background in which for a long
time., people had clot jobs almost irrespective of their educationsome
might say in spite of it. Those who were not so good at
school left and got employment. Those who were good at schoo.
stayed on and got better employment. Because of this, the education
system was rarely placed under the microscope.
Now; of course, more peopl,: h want to work. Yetf recent surveys
show that employers are protesting that there are jobs which cannot
be filled; that the capacities of some young people entering the
workforce are not adequate to meet the demands placed upon them.
Some em'ployers complain about the poor representation of certain
young people in the workforce; of attitudes and abilities which are
not conducive to winning employment.
These complaints say more about the systems through which young
people pass than they do about young people themselves. The
advocates of universal education down through the years, have
argued that education was the agent of equality. Now, education's
critics are arguing that the flaws of the system are such that
edlucation is raising barriers aga inst young people's progress
rather thani elim-Linating them.
Go ver nmen . ts have pr Iovid ed resdurces; proper returns have not occurred.
In fact, it is in recent times while colossal expenditure in education
has been going on, that-the values, direction and competence of the
educat ioft ' systemae been most severely questioned.
Peoleare rightly concerned that too much education is for the
academically-minded, those with special talents. But those without
academic ability are entitled to at least as much attention. I would
argue, more. They are not getting it. People with academic
preoccupations, inside or outside the education system, must
understand their capacity to compound and frustrate a student's
sense of failure when goals are pursued that cannot be reached.
A New South W'ales Labor quoted in this week's Bulletin,
says," What we need is public confidence in our schools and that's
not there Lh. e education system is not doing what we want it to
do". Yet expenditure in primary and secondary education has risen
phenomenally during the last decade. / 7
7
Because of this, recurrent expenditure per primary student in
government schools rose by more than 50% in real terms between
1972-73 and 19.77.-78, and by 38% at secondary level.
At the seame time, pupil/ teacher ratios have been significantly
reduced. There can be no doubt that there are many, many proven
and dedicated teachers in education today. Yet if, in spite of all
this-, children are sent out of school unable to read, write or
add up to an acceptable standard; if the values transmitted by the
education system are inconsistent with those which society expects
of young people, then clearly young people are being betrayed by
the system.
We can no longer remain impervious to community concern.' Does
anyone believe that all these monies have been well-directed,
in the public good? The system is-failing those to whom ' it owes
the most help. Good students will survive and succeed anywhere.
Indeed, they thrive on academic structures.
But for those not so academically inclined, curricula and course
structures are deficient. Courses are needed which meet the
aspirations of all students. It must be the objective of every
school to enable each child to find a level of opportunity, to
e-: perience a sense of achievement.
To do otherw7ise, not only fails our young people, but leaves
them with a sense of isolation and frustration. Of-course,
there must be discipline, relevance and content in any educational
system. But it is time that education accepted the demands of a
modern, industrial society and confronted new education realities.
For education, this is the challenge of the 80' s. New successes
will come, not by arguing successfully for the spending of more
money, but by reassessing how existing monies are to be spent.
Young people should not be penalised for their inability to cope
with the society they enter, when they have not received adequate
training fPor such an entry.
While the Commo6nwe7alth has' nd general direct responsibility for
primary and secondary education, it views with great seriousness
its limitations. It has-devised schemes which, while not eliminating
the ' problems-, will' hop6' filly assist young people to surmount them.
Some of our programmes are designed to help the unempl. oyed and the
young unemployed without skills. They give special training and
work experience, and by the end of this financial year, over half
a million Australians, many of them young Australians, will have
been assisted by these training programnmes.
Recently these programmes-have been strengthened*. Acknowledging
that skills are needed amongst the young unemployed, we have increased
the incentives to employers to take on new apprentices.
We have expanded other measures to increase the intake of apprentices.
We have announced plans to treble the intake by Commonwealth
departments of the Special Youth Employment Training Programme.
we have extended support in this programme ' to trainees taken
on by State governments. / 8
8-
The Government is concerned that there is a recognised short-fall
of tradesmen while young people, willing to take apprenticeships,
have been unable to obtain them. our initiatives demonstrate that
we have acted upon that concern.
I have already referred to the problems facing young people as
they move from school to work. I would argue that if existing
institutions were doing their job properly, many of these problems
would not exist. In particular, the school and the family will
always possess an undeniable capacity to minimise such problems.
However, because problems exist, the Government accepts its
responsibility to-help overcome them. We have agreed to
provide $ 150 million over 5 years-for a special transition programme
which, we hope, will involve, in later years, increased contributions
from the States and the Northern Territory.
The programmes are designed to stimulate or extend the interests
of young people and our primary concern is for the thousands
of young people who are leaving school each year with poor employment
prospects. We want to provide appropriate education and training
courses for them. We want also to tackle the problems of those in the
schools who are likely to be in similar difficulties when comes
their turn to leave.
Our aim is that, ultimately, all young people in the 15-19 age group
will be provided with options in education, training, employment
or any comnbination of these.
Unfortunately, deficiencies cannot be removed overnight. The
Government can provide direction and thrust; but unless teachers,
parents, employers and the community at large act upon their concern,
young people are not going to receive the support they deserve.
We all have a role to play politicians, parents, employerLs,
community leaders, trades unionists, and of course, youth themselves.
The whole thrust of the Government's initiative is designed to ensure
that teenage years are produc't-ive, constLructive and Satisfying. The
programmes I have outlined are essential. Yet, we must-retain -a.
balanced perspective about welfare programmes.
One of the challeniges of the 80' s will be to strikea balance
between Lhe cost of social welfare and the desire of the taxpayer
to retain resources to support the living standards-of himself and
his family. These resources can only be improved in a healthy economy.
The economic problems we inherited had placed the well-being of
all'Australians in jeopardy. We would have been entitled to make
the economy and its-health our sole concern.
Instead, our initiatives have been broad-based. Complementary
with our pursuit of economic growth-has been our achievement of
great social reforms which service the needs of the nation from
the strength of the economy.
Our 1976 Family Allowances Scheme, at the time, gave increased
assistance to 300,000 families with. 800,000 children. In the
last three years, our support of facilities for the aged and
handicapped has been greater than ' Chat of any other three-year period.
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The provision of increased access to Cormmonwealth rehabilitation
service programmes and the acceptance of the Galbally Report
recommendations on the needs of migrants have confirmed our
continuing conmmitment to those in need.
As well as these achievements, your initiatives, translated into
Government action, have produced the National Youth Advisory Group,
the office of Youth Affairs, and the National Youth Conference.
There is now, as never before, available to young people, the
opportunity to bring forward their views to government. There is
a certain appropriateness about speaking to a gathering of young
Liberals as we begin a new year.
The enthusiasm, imagination, and latent ambition of all young people
are capable of giving significant momentum to our quest for new
achievement in the
These qualities, coupled to our Liberal policies, have not only
brought Australia in the last four years to the current feeling
of optimism and pride. They will be central to our continuing
commitment to advance the frontiers of achievement for Australia
and all Australians further and further out.