EMBARC3ED: 5, OOPM
PRIME MINISTER
FOR MEDIA SUNDAY, 19 JULY 1981
ELECTORATE TALK
The gover-r~ ent's economic programme is designed to bring about
stable, non-inflationary growth. And the success of this
programme is now recognised around the world. The economy
is buoyant. Prospects for employment are improving. Unemployment
was down ' by 53,000 in the last year, and the June unernDloymentp
rate was the lowest for four years. It is particularly
heartening that there has been a substantial fall inurferployment amongst
young people. The number of young people under 19 now unemployed
is the lowest for several years. Private business investment
is growing strongly.
There is confidnece in Australia, and our prospects for the
future are extremely heartening. The OECD expects the Australian
economy to grow more rapidly than that of any other member country
-i~ l98ahdal~ on~ I82~ I~ preict ~ grwthrate of over
for both those years. But there are also dangers inour
present situation, and it is the responsibility of us all to
make sure that we do not throw away the great opportunities
which now lie before us. In the last few weeks disruption and
strike activities have caused great and unwarranted inconvenience
to the community. And the selfish wage push by militant unionsV
can threaten economic prospects in this country. In particular,
there is danger that wage rises will renew inflation, which
remains the single greatest threat to improved living standards
throughout Australia. There is a clear need for restraint by
all sections of the community to restrain inflation, for the
success of our policies in producing economic growth is already
producing inflationary pressures. If the amount that we
produce as a nation goes up by three per cent, four per cent or
five per cent in year, and we try to get wage increases of
ten or fifteen per cent or more each year, it is inevitable that
costs and prices will go up, and we will be back on the inflation
merrygoround. Excessive wage rises damage us all.
The prosperity currently being achieved in Austrlaia is welcome
and gratifying. It is a tribute to the sound economic policies
that this Government has pursued. However, it must not be taken
for granted. One indispensable element in combatting inflation
is co-operation. Increasing overall prosperity depends on
the actions of millions of individual Australians and their I
willingness to put aside personal short-term gains for more
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important, long-term goals. The pursuit of excessive wage
demands can only hinder consistent economic recovery. The
benefits of the'economic growth now occurring in this country
' must be shared by all Australians, and not be allowed simply to
fall into the hands of militant unions.
The Government cannot force people to be responsible. It cannot
do away with the selfishness of militant unions trying to grab
the benefits of prosperity for their own members at the expense
of the rest of the community. The Government. will do everything
that it can to protect the interests of the community as a
whole, arnd to encourage the kind of climate in which reasonable
solutions can be achieved. But there is a vast need for a
sense of -responsibility in this area that is shared by all
Australians. Last Friday, after a special meeting of representatives of
Government, t he ACTU and employer groups, the President of the
Arbitration Cum ission announced a review of the wage fixation
principles, and called for a preliminary hearing next Wednesday
of the national wage case for it to consider procedural-matters
and to fix a timetable. The Government welcomes this initiative
from the Arbit-ration Commission, and believes that this
approach can be of benefit so far as the operation of the
wage guidelines is concerned. It provides an opportunity which
nobody can afford to let slip.
The Government believes that all industrial-actionmustbe
called off during the course of the proceedings. Unless the
damaging industrial disruption that has been all too common in
recent times is stopped the potential provided by this initiative
for more stable industrial relations cannot possibly be fulfilled.
All Australians will feel the consequences of a failure to make:
the-most of this opportunity. But I believe that if we work
together, the prosperity of Australia will be increasingly
shared by all Australians.