ALU5 Ill . IA L 2 9 JUL V!
FOR M= DA ' SUNDAY, 27 JULY, 1980
ADDRESS' TO VICTORIAN STATE. COUNCIL
I mst say, that itl is good to be back at Maivern Town -all
from where we launched our last great election victory.
A meeting of this kind, in any year, is an important occasion.
But in this election year, it provides a significant opp. Dortunity
to share, with genuine pride, in the optimism that now
exists about Australia's future.
Major indicators reflect more than favourably on our
chances in the year ahead. And these chances, emerging for
Australia at the end of five years of Liberal Government,
demonstrate the proven capacity of Liberalism to lead Australia
to new levels of achievement.
We have come a long way since 1975 when the nation was
experiencing a sense of gloom.
Confidence, optimism and the sense of challenge, for so
long the envied characteristics of Australian life, had
been overtaken by national doubt, and a sense of
pessimism and defeat.
Without underrating the magnitude of the problems we faced,
we rejected this pessimism.
Now, we stand at the beginning of the 80s, much better placed
than inany other advanced industrialised countries.
But, we must match the success we have achieved with a
willingness and a commitment to tackle the challenge that
lies ahead.
What is this challengc?
What are going to be the opportunities and difficulties of
the 1930s to which we, as Liberals, must respond?
The first, is the continuing need to maintain responsible
economic management; and to make the hard decisions necessary
to make this possible. / 2
-2
The second challenge, is the need to respond to the world
energy problem, responsibly, and with a sense of Austra: lia's
future. The third is the challenge of harnessing the nation's
resources in a co-ordinated and responsible programme of
national development.
The fourth is the challenge to malke sure that this
development is not, just development for its owan sake; but
to see that it provides opportunities for as many Australians
as possible.
The fifth is the challenge to meet our responsibilities to
~ uini~ c ~ rrivlege d.
And finally, our responsibility in domestic management
must be complemented by a concerned and responsible
stance in international affairs.
In all of these, we need to approach our task with the
determination to create a fairer, more just and more
tolerant society.
Of all these considerations, the responsible management
of the economy remains pre-eminent; for without that WE!
will not be able to reach our objectives.
To date, in absolute and relative terms, we are ahead in the
important fight against inflation. While our inflation r. ate of 10.7%
is still too high, it is well below that of the United States at
14% and the United Kingdom at 21%; and the OECD, the
economic organisation of advanced industrialised countries,
has predicted that Australia's inflation rate in 1980 will
be significantly below the average level forecast for these
countries as a whole.
But our efforts must not be compromised.
It is only by maintaining the success of our fight again~ st
inflation that we can secure sustainable economic growth;
that industriescan produce more, and employ more.
One of the chief weapons in the containment of inflation is
restraint in Government expenditure.
We remain unapologetic about our commitment to this goal, and
in the financial yebar just ended, the Government a'hieved the
largest ever recorded reduction in the Budget deficit.
Yet, already, Mr. Hayden has announced policies to spend.
at least $ 2 billion of taxpayers' money in only five areas.
3
That is not a bad effort; after all, it is only' July.
And what will Mr. Hlayden do
when all his Shadow Ministers put in their bids?
After all, the A. L. P. Conference commits the Labor Party
to more than 150 programmes that are not accounted. for
in the figure of $ 2,000 million, and Mr. Hayden reminded
us, only as recently as June 27, that they are serous
about all these program-mes: " What i do say is that wec-have
the sanction of our platform to devise policies and we are
prepared to imp lenient themi as a Government."
Mr. Hayden is alw,, ays careful to avoid telling us how ' he
is going to pay for all" this.
But we do know that M Keating said that Labor's resources
tax will collect more revenue than our current oil levy:
" The debate about resources taxes doesn't matter much tO the
motorist at all. What does matter is if, over time, the
resources tax does collect more than the levy and I
expect it will."
Mr. Hayden has been just as specific, reminding us last
December that his revenue raising programmes were: " Somewhat
more radical than had been outlined up to 1972."
He warned us about our taxation future under Labor, when.
he said: have committed my organisation to a capital
gains tax, a resources rental tax, a levy on domestic oil
producers, a number of initiatives in the tax area and
other measures of that nature."
In what constitutes an elaboration of the " other measures"
the Opposition's Spokesman on Economic Affairs has said
that it is " wrong" that we do not have " some form of tax on
capital, be it death duties, capital gains tax, weal~ th tax,
or perhaps some kind of combination of those, or all thr~ ee."
We cannot say we have not been warned.
We must thank Mr. Hayden for reminding us that Australia
cannot af. Eord the Labor Party.
It is the containment of inflation that has made us
competitive at home and abroad; and won for Australian
industry a new share in world markets.
Exports last year were up 33%; -and this enables us to pay
our way internationally.
The recorded improvement in Australia's economic activity is
reflected in employment growth. While unemployment is still too
high, total employment in May was 194,000 higher than in
May last year.
4
Australia's economic achievements are winning increasing
international acceptance.
A recent report made explicit the confidence of British
investors in the Australian economy; -a confidence which
they were reported as having said they could not gain
elsewhere; a confidence w. hich, in the words of the report,.
" wa* S conditional upon the continuation of a Liberal Government."
These investors proclaimned Australia as a country featuring
a well managed economy, stable government, and good prospects
for the fruture.
The O. B the economic organisation of advanced
induscriali_ d countries, has drawn attention to the
that Australia's growth prospects are very much better than
those anticipated for member countries as'a whole, and riuch.
be-tter than the prospects for the U. S. and the U. K.
It is because of our improved economic health that development
of all kinds is being attracted to Australia.
But for this to continue, investors, small and large, must
know that this economic environment can be sustained.
They must know that an economic climate exists which makes
risk taking worthwhile.
The second challenge that we face is that of responding to
the world energy problem, responsibly, and with a sense of
Australia's future.
It is a challenge which occupied the attention of the recent
economic summit meeting in Venice.
The leaders of the seven major industrialised countries
pronounced that the link between economic growth and oi: l
consumption must be broken this decade.
And they stressed that this must be done through maximum
reliance on the pricing mechanism.
The summtit confirmed that the Australian Government's import
parity pricing policy is the right policy: that only by
allowing prices to bring supply and demand together can we hope
tto encourage exploration and development of new energy
resources; to moderate the growth in demand for oil; and to
facilitate the shift to alternatives to oil-fired energy.
on all these fronts, as a result of our oil parity pricing
policy, the Government has secured significant success.
In oil exploration and development:
* expenditure levels are five times what they were
in 1975;
* during this year 50-60 on-shore wells are likely to.
be drilled compared with six in 1975;
* in the last four years one billion barrels of
petroleum l'iquids h1-ave been added to Australia's
economically recoverable reserves;
4-5,000 maillion of investment is about to procee~ d
on the North West Shelf, and
* Esso/ B. H. P. have already announced programmes of
$ 1.2 billion in Bass Strait.
In conservation: * Australian vehicle manufacturers recently announced
new targets for fuel efficiency and economy, based
on voluntary standards suggested by the Governent;
* this will result in significant reduction in the use
of petrol;
* petrol consumption for May 1980 was 9.8% below that
for May 1979.
In promoting the use of alternatives to oil,
* the extension of natural gas pipelines will result
in further savings, for example, the Sydney-Newcastle
pipeline due to be completed later this year will save
the equivalent of about 3 million barrels of oil
a year.
* In 1979, two million barrels of fuel oil were saved
in the Sydney market alone by industrial conversions
frori oil to natural gas.
Parity pricing is accelerating the development of alternatives
to oil.
The massive Rundle shale oil project would not have beer.
contemplated without our internationally competitive
parity pricing.
Yet the Rundle project provides that, by about 1990, it
would be producing approximately 200,000 barrels per day-,
equal to about one quarter of Australia's crude oil demands
at that time.
Of course, in the short term, oil parity pricing poses
difficulties; nobody likes increased prices for petrol.
6
But in the current world energy situation, it is the height
of irresponsibility to talk about cheaper petrol.
With cheaper petrol, industry would be encouraged to
postpone new technologies.
Cheaper petrol would make Australia, in the years ahead,
a defenceless victim of the key oil exporting countries
beggars for fuel with prices much higher than we now have
to pay.
Such a policy of cheaper petrol would be a selfish policy;
a policy for tcday; a policy which ignores the needs of ourchildren.
It would be asking our children to make adjustments in the
future, more extreme and much more difficult than are being
asked of us today.
And even with parity pricing, our petrol prices of around
32-33½ per litre in capital cities, still compare more than
favourably with New Zealand 45½ per litre; West Germany 57½
per litre; Britain 62½ per litre; Japan 67½; the
Netherlands 67½; France 73½; and Italy 77½ per litre.
Our energy policy is a key part of the Government's overall
economic strategy, designed to take full advantage of our
energy strength in an energy scarce world.
But not only do we have substantial reserves of energy; we
also have great natural resources.
Together, these provide the third challenge that the
Government is already successfully facing the challenge to
harness the nation's resources in a co-ordinated and responsible
programme of national development.
Almost every day of the week in Australia's financial papers,
there are reports of great development taking place in this
country. In mining and manufacturing alone, the May survey of the
Department of Industry and Commerce indicates $ 29 billion of
projects either committed, or in the final feasibility stage.
Over 70% of these projects are energy related.
They include more than $ 7 billion in oil and gas exploration
and development; and over $ 7 billion in coal exploration
and development projects.
Australians can look forward to widening export opportunities
for our coal. / 7
7
This is reflected in the massive rise in our exports of
black coal and steaming coal that is predicted by the
International Energy Agency.
In steaming coal, for example, these are expected to rise
from the current level of 6 million tonnes per annum to
34 million tonnes per annum by 1990.
It is because of Australia's abundant coal reserves, andl
in particular, our-potential for cheaper coal-fi. red energy,
that our raw materials and energy are increasingly coming
together in a significant progrartLme of mineral processing.
The Tnutvand Corzrce survey shows that almTost $ 5 billion
of aluminium projects are either under way or about o
For some time now, it has been the Government's concern that
the development challenges of the decade ahead are
adequately met.
In order to achieve this, the Commonwealth, at three Loan
Council meetings since 1978, authorised the States to
proceed with almost $ 5 billion worth of projects, designed
to provide the facilities for accommodating our expanding
development. These include construction and expansion of ports, coal loaders,
electricity generating facilities and pipeline development.
More than $ 1.3 billion is scheduled for Victoria, including the
massive increase in the capacity of the Loy Yang power station.
This extended capacity, together with Bass Strait development,
will make Victoria one of the energy rich States of Australia,
a facility which will act as a springboard to further development.
What this activity suggests is that the energy crisis for much
of the industrialised world has become an energy opportunity
for Australia.
And -ve are responding positively and successfully to the
call for expanded energy and raw material development in.
a world greatly in need of both.
This presents us with the fourth challenge to make sure
that this development is not just development for its ow; n sake,
but that it provides opportunities for as many Australians
as possible.
This process is already under way as new job opportunities
are being created and Australia's employment growth shows
a marked improvement.
These new employment opportunities are not just occurring
in the construction and production phases of development.
8
For development, and the wealth it creates, give direct
stimulation to other sectors of the economy manufacturing,
retial, transport, communications, and a whole variety of
service industries.
The net result of all this activity is the improved
well-being of all Australians.
The Government has a far reaching strategy for making
sure that the Australian interest is secured in national
development. It was this Government which established the Foreign
Inves-ent Review Board in 1976 to provide advice to
the Covernment on foreign investment proposals.
It enforces specific guidelines which pronote Australian
participation and partnership in our great resource projects.
The Government's objective is to achieve 50% Australian
equity wherever that is possible; and, where possible,
a predominance of Australian management.
We need to understand that foreign investment only takes
place when companies comply with Australian laws.
All foreign investors have to comply with our normal
taxation policies.
They have to comply with the environmental legislation of
the States and the Commonwealth.
They have to operate within the framework of the Trade
Practices Act; and they have to meet the conditions o: F
the Companies Act.
Just as all these things apply to all Australian corpor ations.
On these proper terms, it is in our interest to accept
foreign capital in partnership with Australian enterprises.
We simply can't develop Australia without it.
We want foreign investment, and we are getting foreign
investment.
For without foreign capital, many of our resource projects
would not take place because of the limited capaqity of our
capital markets. / 9
For example, the North I-est Shelf, by itself a
$ 4-5,000 million project, would run our capital markets
dry if it were to be financed from our own resources
alone.-
And this would not be in the interest of Australia, or
our children, or r** he security of the nation.
The Government also recognises that there is a clear need
t * o make sure that development has due regard to the
irntenance and enht-ancei-menF-of the Australian env: Lro= P. nt
in which it is located.
Wie have sometimes had to take difficult decisions to
protect the environment; just as we have been prepared to
take difficult decisions to secure the heal~ th of the
economy.
This has been proven by our actions in relation to
Fraser Island.
The Government promotes and supports development
because it believes that the wealth and strength of this
country are of vital importance.
The fifth challenge that confronts us as a nation is the
challenge to assist the underprivileged, those in need;
and the greater the wealth we generate from national
development, the greater will be our ability to do this.
10
Governments have no resources of their own.
1 hen people ask things of Government, they sometimes forget
that what we provide has first to be taken from you, and
from every other Australian.
Thefore, the ore wealth there is in Australia, the more
we can create as a people; the better the services; the better
the education; the more resources there are for excellence
in research; and the greater is our capacity to provide
for those who need assistance.
One area where assistance is being provided is in equipping
young people with adequate skills to increase their
opportunities for employment.
Many of these job opportunities will require a specialised
form of training; yet there are many young people in our
community who face the risk of unemployment because they do
not possess the necessary work skills.
Many of them are products of an education system which for
too long has placed too much emphasis on academic qualities.
It has ignored the needs of those whose talents lie in
different vocational directions, especially those requiring
trade training.
It is the responsibility of Australian schools to develop the
qualities and talents of all Australian students; to find
something that each student can do well.
I doubt that most of our schools are meeting that standard
at this time.
To the extent that they are not, I regard the school
system as failing young Australians.
As a result, many are inadequately prepared for the
transition from school to work.
The Government accepts a significant obligation to help
train these young Australians; to increase their chances
of competing successfully for the jobs that are becoming
available. l
11
Since we came to office, over 600,000 people have heen
assisted by our manpower and training programmes.
These initiatives are just part of the Government's concern
for those who are -disadvantaged and in need of particular help.
In the last five years, while practising stringent government
rost. r-aint-, we have not comLpromised the proud Liberal tradition.
of assistance to tI. hose in need.
Care for the aged is an important concern of the whole
community, as it is of governments.
In significant measures to secure this, the Government has
replaced the complex means test for aged people with a
fairer and simpler income test.
Apart from the security offered by the automatic indexation of
pensions, the standard rate of pensions has reached its
highest level in over thirty years as a proportion of
average weekly earnings.
We have approved the building of over 500 new self-contained
hostel and nursing home projects and have already determined
that this programme will continue for the next three years.
These initiatives have been complemented by our concern for
the family.
We have introduced family allowances designed to help low
income families.
By July 1 this year, the spouse rebate had increased from
$ 400 to $ 800 during our term of office; and the sole
parent rebate has risen from $ 200 to $ 559.
Since we came to office, we have extended the supporting
parent's bene-fit to include supporting fathers..
This represents pioneering assistance to single income
families.
The Government is determined that the abilities and apt: Ltudes
of people . with hiandicaps should receive w~ ider recognition.
In our first Budget, we introduced triennial funding to
enable organisations to provide more certain and effective*
help for handicapped persons. 12
1
Over the last three years, the funds that we have made
available through this programme have increased by almost
in real terms, over the levels that operated in
the three Labor years.
Furth: r sums for capital and recurrent expenditure have
already been approved by the Government for the next three
years and these will ensure continued expansion of services
for disabled people.
These services include the provisions of training centres
and sheltered workshops for handicapped adulL-s; d. ay
training centres for handicapped children; activity therapy
centres; and residential facilities for people who need
special accommodation to enable them to engage in normal
outside employment.
With these facilities, disadvantaged people are able to
demonstrate to themselves and to their own families and
communities that they have skills; and that, with these
skills, they can contribute usefully to society and to
their own self-esteem.
In taxation reform, we have increased the level at which
a single taxpayer pays income tax from $ 2,519, when we came
to office, to $ 4,041, today.
For the taxpayer with a dependent spouse, in 1975-76 income
tax was paid on all income from $ 4,000.
Today, there is a tax-free area for this family up to
$ 6,542.
In these ways, we have relieved many low income earners from
paying any tax; and, as a result, about half a million more
Australians now pay no tax at all. / 13
13'-
And because of further tax reductions on July 1, all
Australian taxpayers are now paying l~ ess tax.
All this is only part of the catalogue of Government
achievrrdents during the last five years.
T~ hese achievements have lifted Australians to a new sense
of confidence in our future.
But this brings with it our -final challence in the decade
ahead, the need to complement our responsibility in domestic
management with a concerned and responsible stance in
inter-national affairs.
There i ot the S'ij~~ c4ub tL. hr u~ ou
the major problem is going to be coming to terms wit~ h
the reality of Soviet power, and Soviet attempts to expand
their influence.
You all know the Government's position on the Soviet invasion
of Afghaistan, which has changed the strategic circumstances
in which we live.
As a result, we must increase the general level of defence
preparedness and accept a higher real level of defence
expenditure. We must selectively improve our overall operational capability
for surveillance and deployments.
In particular, following the invasion of Afghanistan, -the
Indian Ocean has assumed a greater strategic significance.
We are expanding the facilities at Cockburn Sound; and we
have offered the use of these facilities to the if
they so wish.
As part of our five-year programme, significant defence
decisions have already been made:
* we have ordered a fourth FFG guided missile-frigate,
and 75 new tactical fighters will be purchased;
* all the Orion surveillance aircraft will be equipped
to carry the harpoon anti-shipping missile;
at a cost of around $ 80 million, a second underway
replenishment ship will be built to enable our combat
units to stay at sea for long and extLended-periods;
* and we know we'll have the support of the whole
community in expanding the Army Reserve to 30,000.
by the middle of next year.
In short, we must be more prepared for the uncertainties of
the future. ./ 14
14
But this is only part of the story.
success in meeting the Soviet reality will only come with
a clear understanding of what it's all about.
That places a responsibility on government to educate people
to the challenges and dangers ahead.
If, in a democracy, political leaders are not prepared to0
do tnat; if they -seek to move witLh the popular view raither
than argue for the right view, they are not fulfilling their
duty and responsibiliLty to their owvn people.
-! any countries share a commton perception about the dangErs
in 1. iest Asia.
Wqhat"-is now new, is that many more countries are also
beginning to understand that there are similar dangers in
South East Asia.
People are looking at South West Asia and South East Asia as
twin parts of the one problem.
W1here formerly Europeans and others paid little attention to
Iampuchea and its problems, now they are much more concerned
about the reality of Soviet influence in Indo-China; and
Soviet support for Vietnam's 220,000 troops in Kampuchea;
support which is costing the Soviet Union $ 3 million a day or
$ 1,000 million a year.
There is a growing concern around the world about these dangers;
a growing understanding that what's happening in Afghanistan
and South West Asia is not unrelated to the expanding Soviet
influence in Indo-China, and its increasing direct use of major
Military bases in Vietnam itself.
In recent years, new international initiatives have
strengthened aid to refugees.
Since the fall of Saigon in April 1975, nearly one million
refugees h-ave fled Vietnam.
Mo-re recently, the Vietnamese invasion of Kamouchea in
September 1978 has led to the displacement of more than
500,000 Kampucheans to United Nations camps or unofficial
camps along the Thai -Kampuchc an border.
The Russian invasion of Afghanistan has created refugees
in excess 600,000.
Indeed, the history of events since World War Two, including
the Soviet invasions of Hungary, Czechoslovakia, and
Afghanistan; and Soviet behaviour in Mlozambique, Ethiopia,
Somalia and South East Asia; all these demonstrate the
influence of Soviet policies on the staggering post war refugee
tota--l of 13 million.
15
No other regime, no other political philosophy, has everc
shown such a capacity to create vast movements of refugees.
Such a shameful legacy condemns the Soviet Union, its
policies and its actions.
It is the legacy of an alien regim e, which seeks to suppress
the free will and spirit of men and women; a spirit which
has never been, and will not, be suppressed.
In this country, tens upon tens of thousands ofpel,
who have come here, have directly experienced comimunist
s uppre ssioen, and the extinction of democracy.
Th1e t~ cc'vof oo rl1. d i1s t h at ths ba r br m cCn ti n L! 2S;
that man's inifinite capacity to act with inhumanity to 11ims
fellow man is not something of the.-past.
Inhumanity and brutality have occurred all too often i'n
the years since 1945.
We must learn to see the world as it is, not as we would
like it to be.
As a wealthy country, we have a duty to do what. we can -to
help.
After the war, a massive refugee movement came to Australia;
people who are now helping us to build a better, a greater
and a more tolerant nation.
And we will accept a further 20,000 this year, most of wahom
will come from Indo-China. 40,000 South East Asian refugees have
come to Australia since 1975. In assisting refugees from
South-East Asia our response is more generous than that of any
other Western country in relation to our size. a
This is not only a source of pride,* but an indication of
Australia's sense of international responsibility.
In 1979, the Government recognised the severity of the
suer _ Iign Kampuchea and called for seilrsos
from Australia..
Since September last year, when the first international appeals
for assistance were launched, the Government has pledged and
contributed over $ 14 million for humanitarian relief.
We also decided to encourage public support for tue.
Kamipucheain relief appeal by allowing donations made in 1979-80
to qualify as tax deductions.
This is the first occasion on which any Government has allowed
tax deductibility for donations to foreign aid.
Together with the Commonwealth Government, the Australian
people have demonstrated their very real concern fL: or the humant
and suffering of people in Indo-China. / 16
16
And we have been particularly active in seeking to stir
other nations to do more to assist refugees from our own
part of the world.
Such programnes take into account our responsibility as
members of the international community.
This responsibility increases with our recognition that,
in a difficult world order, we have much to be thankful
for.
Our strong and competitive economy has recharged our
na" ional capcity; confirmed our success as a Covernment.
,; aDther election lies betfore us; of great inportance
especially for those of us with a deep faith and conviction
about the future of Australia; with an idea and an ideal
of what we want Australia to become.
What happens to Australia in the 80s matters very much.
We have a particular philosophy in which individual men and
women are paramount; a philosophy which recognises that the
end of government is not power or authority, but the service
of people, their freedom and their dignity; their self-esteem
and their capacity to lead rewarding lives.
Your support in the weeks and months ahead is extremely
important in the task of securing Australia's future.
Your understanding of our policies; your knowledge of the
difficult decisions; your advocacy and your defence of
those policies and decisions all these are vital elements
to our continued success.
The Victorian Division of the Liberal Party has a proud record
in its contribution to Federal and State Parliament; and in
the strength of its unwaivering support in the cause of
Liberalism. In recent times, we have secured significant electoral success.
But elections that lie ahead are always more important than
those already won.
Every election needs to be fought with all the strength at
our command.
I know the full support of the Victorian Divisionwill be
directed to that purpose.
Australia has an unparalleled future.
But one of the things we must never forget as Liberals, is
that this future depends totally on our capacity to govern;
on the idealism, on the strength and the vitality of the
Liberal Party. ./ 17
17
We know what Labor did in three years; we know that
their capacity for the destruction of our values, and
our way of life is infinite.
That places an even greater responsibility on us, as
Liberals, to govemfairly, and for all the people of
this nation; to see that what we achieve today, improves
for our children, the quality of the life they will lead.
Let us accept that challenge and pursue it single-mindedly;
with energy, coimitment and success. 000---