__ EMBARGO: 9.30PM
CHECK AGAINST DELIVERY II
i . PRIME-ME INISTER
FOR MEDIA FRIDAYMAY 15 981...
MELBOURNE
ANNUAL DINNER OF THE
AUSTRALIAN LIBERAL STUDENTS' FEDERATION
For more than a century, the Socialists have thought that
history is on their side. Their view has been that nothing
-" can-, top -ocialism-from-coming-in the end. . This9doctrine.--'
is one of historical inevitability, a comforting doctrine
to some kinds of people, and one that has assumed several
fonrms.
In Australia, the doctrine has, in the mainb assumed a
comparatively non-ideological form, namely, that each
Sodralistic policy put in place by a Labor government will
-remain in place even after the electors have thrown Labor
out of office at the next election. There has been a belief
that-succeeding Liberal governments will not remove, but
live with established Socialistic policies. So no matter how
infrequently Labor holds office, Socialism is inevitable
in the end by a silw _ proce-sof accretion.
This version of historical inevitability portrays the
advance of Socialism not as an irrestible swelling tide,
but a sort-of slTow shuffle. There is little. idealism in.
it, but it has at least been something for the Socialists
in this country to cling to,
From the time the Liberal Government came to office after
the 1975 election, we-made it plain that we did -not regard
existing Socialistic tyPe policies as sacrosanct. We expressed
our clear determination-to-re-establish a more Liberal
and more limited and less arrogant role for government in
Australia. We have done this because we believe that if
Australia is to meet the cfalteges-of--th-M ighties-and
beyond, we cannot afford to sit back and accept unsatisfactory
and inefficient arrangements which cause more problems than
they solve, and whose costs outweigh-the-benefits.
Never has our direction been made plainer than in our recent
decisions arising out of the Review of Commonwealth Functions
and in relation to hospital and medical arrangements in
this country, and in the recent Premiers' Conference. There
are major benefits which will flow to all Australians from
a more realistic view of whart-government-can do.
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In announcing the Governiment's decisions arisin 4from the
Review of Commonwealth Functions I' said that theyp were a
Smajor contribution to.-the historic turnaround -tVA the_-,
political oppo e~ uht:.
this turnaround was impossible. This is why so many Of
them, were -outraged. , One-of -thenm in -fact rose APi 3c
the liaPaf nt-,-wi I was only halfway thr A -the-*
-onerch. and confi aed-,. limself unable to sit t1l-j'e an
it also-helpi expla" ui: ihy 6iirpool-itical opponeiiwereso
confused in their immediate response. The Leader:, f the
Oppsiton taredby-accusing us of dsatigte
puicSeotor, -yet 1later-on-iw-tte same-spee. h1cu~ ks a,, e
Government: of spending-' too much. The leaders of -tthe-
-* Labor Party cannot make, up their minds whether hey.-
should denounce our approach arid ur__ potiaiesa a--
dismantling of government# or. whether they should-try
to gain popular support for themselves by accus-i-ng us of
not having gone. far enough.
-Our turnaround is a move away from big government; away
government ' that Labor gave this country between 11972-75., when
the number of Commonwealth employees rose by 52,000
( June 1.972 June 1975). We have brought itkA_~~ yjOO. QL. 0
and the RCr will bring it down a further 16,000 or 17,000.
under L~ abor the Governmen't's claims on the nationl's
earnings rose from under 24% of GDP in 1972-73 to more than
In 1975-76. We have cut this c17he~ Ta
and we have further to go.
We -don't--nt bi-g--govemment,--nor do the Austral-ian people.
Only Labor wants it. And let me stress that big goverment
is not caring government. It makes unemployment inevitable
by undermkning pxL~ ateernterprisg, and it fosters inflation
-and--cons equen t-ly sociiA-divisiveness, with so~ arj'g_ taxes......
and large deficits.
Limited governulefftWasafae-greater capacity to improve
* care for those who need assist * ance. B~ y strengthening the
eonomy, limited govetb1ment provides a foundation for.-
generous ss& eocu-ar i-ty_& rranqaements. Those in lieed
benefit-from more ef ficient government.. Over tbg-period
of this Government, age pensions have reached higher levels
in relation to average weekly earnings than at any time
* in the last 25 years. And you will' 1 be aware-TTYat p edi-ttns**--
have been made in income security payments as a result of
the RCF~.
A Liberal government does care about people, and the Liberal
approach is based on the view that society has immense resources
Sfor achiieving what people want-without the need for
counterproductive intrusion by governments. These resources
are the talents, the skills and the knowledge which people
possess. Big government cramps these resources.
Centralieationan bk-A; governent neuze held ouk; 1in1n
: prospects for the.-Cause of freedom' and civilii iion, for
ihitittiVd-and4 crdaeivity; -df" for the promotionmof tose--.
values which lead to the advancement of mankind. The
advance~ ment 0f. * mankifiQ& c omes -! w-amet Ty Mf Wevo~ itr..
-effot-f individal'iwithin. the-framework of-ivility
~ a P--_ thw.-rkXIe~ of:: 1aW. which governments -helpp, i W i.~
~. is hman beings whor make-history, and in this process,. historY does w-*
mtaakkee nsoid eas!. s uznIp twioafriist twoW iscahy sutoig gyeosutn gth avte ort) hee ._ fukptgure ei clqi4e& sr,.
: 7ouits'Ide himan conitol.' Sicdh-& 9bumptions. would i unqworthy......
of your own capacities and of the responBi-bili'ties which
-youiwereto the , gensr& tlions which WUTTfollowY~ oiu ,*
It is often-said. that'-the West has faced a crisis in recent
decades. I doubt that crisis propertiens.-were ever-reached..
but -there certainly have been considerable uncertaintie~ i
of both will and belief.' From the late fifties, through
to the meid seventies, the West fail~ adto perceive the need
for new policies, and by the time it did wake up..
unemployment and inflation were both high and becoming
entrenched. In those years, the distinction between caring
government and big government was n5tTaT cle-atTf1 Jy asit
should have been. The distinction between a protective
-role for government and the omnipresence of government was
Th6t-as clear as it should have been 42eople--thught--that-~-
governments -were entitled to spend almost without. limit,
and it was falsely imnagin~ ed that government money would
__ avle human problems.
The tradition of freedom -which says that the way to solve
these problems, Is to encourage people to use their sk~ ills,
tARnts and imaginations was subordinated to a reliance
on government. Hardly anyone now fails to recognise that
government had õ kdwii'too much. " Our policies reassert that
fr-eedom not paternalism and bureaucracy is the path
to the way of life that most people want.
Let me give a simple, but compelling, example of how
freedom helps to solve social problems.. u-r--polici-ea-fise---
that if government creates the right conditions for people
to use their know16edqde, and express their own wants in themarketplace,
the inevitable result is the-opening-U-pOf--
n~ ew opportunities for others, including job opportunities,
As a result, almost a quarter of a million additional jobs
camne into existence in the two years to last December in the__
private sector and the rate of unemployment is n~ wif ailing.
In April it was the lowest rate for four-years. This
achievement far exceeds what could have been achieved
with government make -work-s cheme s which-a-malways7-tl e
first resort of the Socialists and which could only have
been paid for by higher taxes anyway.
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T heidJwayof Ifreedom-4; l-.&, t6 I k ni-1
.1 -j6b! 3s> Taid lbwer-tasio.-. r~ ea~: the f
definition, the retreat of oppression arnd injustice. BY
'---axe. thei sourcesa of-ne-ppreasin-f. nqwj n u_; fte. 4d~ oi.
1ewopportunit~ es_. fox.-asubtle diecrimination * rh.
The-:. retreat of'' monolUit1cSocialism-in;, pqlan d-: ZWya--the__
ff ragi lity of' a systeyxwwh ich--uppreses thUf V antrfe
-~ values of the. people Freedom may pot end. prejudice and
_ Ihtoerance -in, prtid'atitudes but-, it--depries-the-;..
,.-. sz-pte JvdIL-e4 i -th-e lin tdi-fart-the-dami e rin 9 of= gU cant--
opportunities to grow strong.-
In implementing policies which express our faith in freedom,
* we -believe we ak6-bdiiijtrue-to the traditioniswil-hwe av
built in the West, the most humane -and creative societies that
the world has ever knowqn. The thread running through all
ou k pjidfiiie9 -is -that~ i-dividalss houl& lie able O make7-
decisions for themselves. This is why this government is
so fd is-i~ ely coiritted. to the protection of theF-t-axpayers,-
for freedom requir-e.-that individuals have their -ownl
spending power, and that governments must justify the cl~ ims
they make on taxpayers..
The Revijew of Government Functions has a particular
-relevance in this connection, for the decisions arising
from that review amount to.. the most comprehen sive practical
expression of this kind-of c6mmitment to freedam-ñ ch
has emerged from any m~ odern Australian government.
-There were -three -categjories of decisions. The~ fikstqqpcerned
with moving over to private enterprise functions which itwill
handle better * than governments, the second with passing
back to the States functions which they can handle more
appropriately, and thus -avoiding waste and dupliaTtif,-.
and the third with rationalising some of the commonwealth's
own activities.
I mention here particularly the abolition of the Prices
Justifi . cation Tr ibuinal ffie'f reeing up of the airlines>
and the establishment of TAA as a public company; the offering
zale of a * number-of-gorvernment enterprises to private_...
enteprie; the reductions in industry assistane h
abolition of dual control over public hospitals, anid the
* new health arrangements based on voluntary private-ihl-uanceTthe
introduction of a loans scheme for tertiary stu-dents
from the beginning of 1982; the maJor reductions in the
size of theCeemonweal-th bti-r aucracy; and a joint
Parliamentary standing committee to review the performance,
role, f unctions and continued need for all statuatory bodies.
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The, way, of. -f reedomvleds.-tW, I-gher ecnmcgowt. Mx.
*-rjobandlower. taikes...' And, bicause the freedom-1' I -am: ta'lking.,
defipition the retreat of oppression and injustice. BY
zC -fldbtrast j excezssi-vd zp e; x* nism and interferivg.: regulatton.
ave-th-e sourcea' of ' n-e o~ ainLaw in~ natice'-. nd of.-
~ new ,. opportumriewzt f or-subtle irjnatin.' c
_ r. ttdre at of . onli-thi-. Sbeialism in . Polard. hos 0.9W
fragility of a -yatem-whlct -suppr'essres1th-freeffom-and thi,
values of the -people-.-Freedom. may not end-prejudice, and
**--intole ran ce ' in ' pfiVataF-tttude s but ' it -deprives the
preijudiced, the
opportunities to grow strong.
In implementing policies which! expresra-lfaithin-reedon..-.
we believe we are being true to the traditions which we have
built in the West.. the most humane and creative societies that
the world has ever known. The thread running through all
our-Volicl-edis that' indtvtdilals AVrofld-be M! Ls . omAke
decisions for themselves. This is why this government is
so decisively committed to the protection of the taxpayers,
for freedom requires that individoaJs& hava-tUOi-r own-.
spending power, and that'governments must justify the claims
they make on taxpayers.
The Review of Government Functions has a priua
relevance in this connection, for-the decisions arising
from that. reviOew amount to the most cornprehen. 51vo practical
expression of this hind of-eu itmert-ta freedom-which
has emerged from any modern Australian government.
There were three categories.-of decisions. Tbha... ik-st concerned
with moving over to private enterprise functions which it
will handle better than governents, the second with passing
back to the States functions which they can handle more
-appropri ately, iand thus-avoidi ng ' wast-e and iTuirI1-iation,
and the third with rationalising some of the Commonwealth's
own activities.
I mention here -particularly the abolition of the Prices
Justification Tribunai ' the freeing up of the airline6s
and the egtablishment, of TMA as a public company; the offeri-ng
for sale of a nuniber of goverament enterprises to private
enterprise; the reductions in industry assistance; the
abolition of dual control over public hospitals, and the
ffiw-hea'flhrarange ments based on voluntary private insurance;
the introduction of a loans scheme for tertiary students
from the beginning of 1982; the major red uctions in the
-4ñ 4e of-4e-ommonwe lth bureaucracy; and a joint
Parliamentary standing commi~ ttee to review the performance,
role, functions and continued need for all statuatory bodies.
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s-determnb* nv O -t4lOW
( iot" PhVas y eli eve. ' this is ; th & Ay rgal
and iOUlt4e4.
want it to be.. our turnabout from high taxes anid iniflation,.
-44-bgh unempldymenprqvides;
' morefrbmi'ur ecricdftI dWtY And that establikhesthe,,
LA~ñ coti~ ti~ ~ i ie' gbterai~ os C o> n e
to enjoy and look forward to.
L -Otilk. turnabbuhd also -eg1h'=. hade
means givingade rngh~ ta-
Au~ tibAlian federal -ytem. One of our conoerns4ft to-* avoid'-
thew atle ahd duplicilTfon regsltiig. from over-z6TrlatOh....
byillh theF S dV4t&&' i diiibility' for fufotioo-Wh1 hareprei
n il tefg Q
What point is there in the Commonweal~ th funding a curripuluhl
develo~ pmenit centre of -its own wheny thi-s merely ov~ r-laps-with
work-being! done by the States? Or what point is there in
the Commonwealth bureaucracy being involved with the running
of piilie hospi'tals w in th-e States are both cboistitutionally
responsible and very well able indeed to run public hospitats?
There have been some differences of view about -the precise
financial contribution which the Commonwealth BhOUld ' make to
hospitals. But I have no doubt that a year or two down
_ the track when these differences will seem like ancient___
history, the States will value their independent capacity V
to them.
Over recent decades, and especially from 1972-15', the general
*~ qdwtrofgove rnment -It-Au stralia was made worsee. by-an
increasing centralism in Canberra. ideal lyfeedfra im.
should operate to limit government. But in terms of power,
the Commonwealth Government was the beneficiary of the
centaliatin ad te-r of government in Australia. 4-
Eve * n Sir Robert Menzie~ s, looking back f rom his r-etireme-nt,
made the observation that while it was easy in theory to
-favour limited power for the om nwata larger amount
of ' pbwer Iinade3i. tC ~ ii
of course, in a situation in which selfish'and divisive
groups are extremely powerful, a weak Commonwelth Government
would be a poor protector of individual rights and of the
public interest. So what the Commonwealth needs is that
measure of power which will enable it to discharge its
own proper respan-sibil-it-ie----) ithtr-more nor less and
this Governmenit will seek to retain no power in., excess of
that.
Labor has sometimes argued that government is relatively, small
* and restrained in Australia, by comparison with ' other countries.
International comparisons are always difficult because of
inins titutt~ iwT and -I-ways of compiling statistics.
Nor is there any obvious magic about the average or typical
size of the public sector in other industrial countries.
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ITw ectbk iab ' ibV filsrbnrevraM % frelation toGP--than: tha VfWM-.
' United States* the united kingan Germay,. th etrl -ra~ t
the lsize of their iiblic sectors. T: " e
And it
ispartiularly interesting that of . the majorOC
GD 1T'hose e0o-ni'c conditions-would yo -prefer'
. Au6stralia to* hA& thote-of bg. qfger sedi---United'
IFingdom and Uited'ttates 6rci those of mierpe
Japan? TW& fo" i ea~ on re~ gniionin the Weat of the
need for a turnaround is plain to see. Not only does
limited government fnean more effective and -less intrusive.
governmfent, it also means higher economicrowth,_ higher
real incomes, more job lower taxes, more nfluenceto
ordinary* Jieople'a's usersasid consumers, anrd a greater,
adaptability in our society to change.
There are also very real advantages in freeing resources
and opening opportunities for current priorities. We are
no longer so locked into programes an4-zztiviti-C.-Wihich
once had an importance they no longer have. We can
devote -resources much more-adequateoly'to areas we believe
are of major current importance.
Let me mention energy research as an example. A re-location
existing resources. -in the Australian Atomic Energy
Comi~ jion -Research Establishment and in the -C* SIRQ will
e& na~ le the Government-to establish. a new institute of
energy-and earth resources in the CSIRO.
The establishment of this institute is a recognition
of the higli. p~ ri6-ty the Government believes must be given
to endxgy research.-These -decisions, will consolidate
Australia's pres~ ent nuclear regearch establishment into
a f irst class nuclear science and technology research
organfisation and establ-ish a first class non-nuclear
research Organisation.
The rezources transferred to CSIRO will enable expansion
of research in such areas as fossil fuels, mi1nng of energy
re-sources,. alternative f uels and renewable energy andenergy.
-conserv-ation.
Because limited government compels greater awareness of
priorities, it is more effective goverrnment and government
better geared to enable Australia to take up the challengeB
and opportunities before us. We pioneered more limited_
government through the second half of the 1.970s. It has
been a hard path calling for a degree of determination,
and for a sustained resistance to demands for government
spending but other countries are now trying to follow us.
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* LUberalism stnsas a srnti-ig
-message--to th, wor ms, -eu~ ta4~ Itfe
3z~ e ef~ rt~ s... r~& t~ eiPL of 4ndividua1 humani& na
three Olu~ irce f rogresal a message -whichzifakes.. T*~
-~ ftee'~ oi pre -einenta message which insists % lat
-' People shod Eb. treateda ither 7t; B:~-
patient-An*' the hanft of -goveirnment, but-~ ds amic...
" responsible and.-adult.
This* is--the esserif'ral messagre 6! the fre6 sooleties o the.
wo idn our time.:., J'Modern Australian Liberalism stands.
at the f oref ront as W: a p . ra6caj example of th~ zbenefits.-
of the Liberal way of life. ours is the message of optimism.
It is the only message worth entertaining.-
, M i Stergtfisae. bcauei starts with human
beings as they are, withi their capabilitfies wl atheir
aspirations,--and because it recognises that the
only way to achie~ ve huma~ n aspirations is through the free
operation of hutantalents and abilittes.
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