-AUSTRAL( A
PRIME MIN* ISTE~ R
FOR I1IDIA SUNDAY, MAY 3 1981
ELECTORATE TALK
With the Premiers' Conference to be held in Canberra tomorrow,
the decisions announced last Thursday following the review
of Commonwealth functions could not have been more timely.
The review of Commonwealth functions has been mo re than a
mere cost-cutting exercise. It-has demonstrated that the'
Federal Government is determined to be more efficient.
* The various decisions in every area of Government set the
example to the States to follow our'lead in the mostsignificant
and far-reaching Ministerial review ever
undertaken by a Federal Government.
What the Federal Government has done is not just a shift
of emphasis from the bureaucracy to private enterprise, or.
from the Commonwealth to the States, but proof . that smaller
Government can be. achieved. These decisions reflect our.
great pride and confidence in Australia. We are determined
not to see Australia undermined by inefficient bureaucracyA
and higher taxes as has happened in some other countries.
Australia has a great future ahea ' d of it provided wq act*
with commonsense and determination.
One of thie most important things to realise about the decisions
I announced last week is that they are part of an approach
which is producing major benefits for all Australians-
* these are th& benefits of higher economic growth, leading
to higher incomes, lower prices, more jobs and lower tax rates.
Special care has been taken to protect those underprivileged
and disadvantaged in the community. M4ore-limited government
-is now encouraging massive job creation. Economic growth is
. on the rise and that is why the review of Commonwealth functions
was crucial if this trend was to be maintained, and the benefits
are not to be lost simply in expanding bureaucracy.
Three basic elements of Government activity have been concentrated
on the size of public expenditure and tax ' ation, the size of
the public service, and the extent of regulation. As a result,
some 350 decisions have been made.-
The Commonwealth has not only reviewed its own regulatory
activities. Areas which could be easily or better done by
private enterprise or the States are to be offered for sale
or transferred. The States, have, if anything, even nore considerable
responsibilities in these areas, and I hope that the measures
that I have announced will act as a stimulus to the States to
review their own extensive regulatory provisions. o / 2
-2
One area where functions presently being conducted by the
Commonwealth are being. transferred to the States is health.
The Commonwealth will continue to provide substantial financial
support for hospital facilities and community health services,
but from now on overall funds will no longer be tied to
particular purposes.
State governments will have the right to decide the appropriate!.
balance of health care services, the level of services andt
the exte * nt to which health care has priority over the provision.
of other public goods and services.
Not only has the Government decided on major reductions in its
own capital works area as an example of its expenditure
restraint,. but it also believes that the most rigorous
controls must continue to be exerted over spending by
Commonwealth Departments and authorities.
For instance, there will be a three per cent reduction in
real terms on the current level of expenditure of
administrative and operational items for the coming
financial year.
The re-allocation of functions between . the Commonwealth and
States, between Government and private sector, together w * ith
decisions in relation to the Commonwealth's own activities
will result in a reduction of 10,000 to 11,000 Government
employees. There will also be a 2% reduction in the number
of Commonwealth Government employees in the areas subject
to staff ceilings, to be effected over the next two years.
To achieve a total reduction in staffing in the order of
17,000 over the next two years, a very large re-deployment
operation will be necessary.
" Obviously, the review of Commonwealth functions has been much
more than. an expenditure review; exercise. Nevettheless, the
Government has regarded the review of Commonwealth functions
as making an important contribution to the objective of further
reining in Government spending to make room for private sector
growth and pave the way for significant reduction in the
burden of taxation.
-The decisions taken will mean an eventual savinq in Budqet
~ outlays of the order of $ 560 million. Government revenue-_
will be boosted from the. sale of assets and a reduction
in industry tax concessions saving $ 130 million.
This Government's attitude to expenditure restraint again will
be. firmly evidenced in its approach at the Premiers' Conference
tomo-rro; Pand the forthcoming Loan Council Meeting, and in our
determination to hold down outlays in the lnl/ 82 Budget.
The decisions that have been announced from the review of
Commonwealth functions will benefit all Australians. They are
a significant further expression of the Government's broad strat~ egy
to achieve more jobs, lower taxes, lower infl. ation, higher economic
grovwth, higher wages and salaries and less centralised Government.
The se decisions will strengthen Australia. They will make a significanl
contribution to the important task of streamlining Government in the
1980s and beyond. o 00---