47-PRIME MINISTER
SPEECH TO TIHE CONFEIl I ON0 A USiTATN I1NND USTIRY, CANBERRA
2 DECEMBER 1983
IT (; IVES ME GREAT PLEASURE TO ADDRESS THIS, THE ANNUAL GENERAL
MEETING OF THE CONFEDERATION OF AUSTRALIAN INDUSTRY,
THE CONFEDERATION HAS FOR MANY YEARS BEEN A FORCEFUL ADVOCATE
OF AUSTRALIAN BUSINESS INTERESTS,
THE PARTICIPATION BY THE CAI IN THE SUMMIT AND DON HUGHLS
INVOLVEMENT IN THE EPAC HAVE BEEN ESPECIALLY APPRECIATED,
THE COMMITMENT TO AND UNDERSTANDING OF CONTMPORARY AUSTRALIAN
NEEDS DEMONSTRATED BY CA AND DON HUGHES PERSONALLY IN BOTH
THOSE FORA HAVE CONTR: ' JTED IMPORTANTLY TO THE NATIONAL EFFORT
TO ACHIEVE ECONOMIC RE2GVERY,
THE CAI's CONTINUING C TRIBUTION TO PUB! IC AJWAFRENES, AND
GOVERNMENT POLICY DEVW -' PMENT IS AN IMFPJRTANT I: GhEbI ENT IN
MY COVERNMENT'S EFFOR. T70 FORGE A NAIIONAL CONSENS1US AROUHD
THE MEASURES NEEDED T. SURE SLUSTAINED ECONOMI: RECOVERY,
WE MfUST BEGIN WITH THL . COGNITION THAT EViERYTHIN65 DEPENDS
ON THE GOVERNMENT A) O PO! ICIE', AND SVCIJRING THU NE-[ : SARY
CHANGES OF A TITUDES J! NESS ND UNINS, CHAT WIL. EN
GROWTH TO BE SUSTAINE..
THAT IS THE MAIN THRU' OUR POLICY EFF ORT,
OF PARTICULAR INTERES--YOUR MEMBERSHIP PAS BEEN THE
APPROACH MY GOVERNMENT ADOPTING ON INDUSTRY POLICY,
TH.-RE A TriiRLL PRINCII AL ASPFCTS TO OU-I( J. Y Pol I( CY
THl ENCOURAGEMENT OF STRONGER GROWTH, HFIE PROMtOTION OF
EFFICIFNCY IN INDUSTRY AND THE DEVELOPMENT A FAIR AND
EQUITABLE BUSINESS ENVIRONMENT,
LET ME TAKE EACH OF THESE POINTS IN TURN,
THERE IS NOW WIDESPREAD AGREEMENT HAT AUSTRAL.. IA HAS TURNED
ITS BACK ON THE DISASTROUS ECONOMIC DECLINE THAT BEGAN IN
1981, AND CAN LOOK FORWARD TO STRONG GROWTH IN PRODUCTION
OVER THE NEXT YEAR OR SO,
BUT THIS OF ITSELF, AS I HAVE SAID BEFORE, WILL NOT PROVIDE
AN ANSWER TO AUSTRALIA'S ECONOMIC PROBLEMS.
A
THE EFFECTS OF THE STAGNATION, THE HIGH AND RISING
UNEM( LOYMENT, THAT HAVE BEEN FEATURES OF AUSTRALIA'S
ECONOMIC LIFE OVER THE PAST DECADE, 1WILL NOT BE WIPED OUT
BY A SHORT UPTURN IN LEVELS OF ACTIVITY.
AUSTFRALIA NEEDS STRONG SUSTAINED AND WIDELY DISTRIBUTED
GROWTH OVER A LONG PERIOD.
WE HAVE TO REPLACE THE ENTRENCHED UNDFRPERFO-lrMANCF OF THE
LAST DECADE WITH PERSISTENT GROWTH IN PRODUCTIVITY, ') iUTPUI
AND EMPLOYMENT.
THE SIGNS ARE ENCOURAGING,
IHE PROSPECT AR. FOR SUR'STANTIA G( OWTH THP( H, l IRtI
F INANCIAL YE/ P,
I H'DU~ iTHE LAi F INANC IAL YEAR THE RE AS YOU KNOW,
A DECLINE IN OUIPUT.
THIS YEAR'S iBU'DCET ANT IC IPA TED GROW'TH THROU( IH THE YEAR OF
PER CENT IN NON-FARM PRODUCT, AND MORE IN TOTAL PRODUCT
BECAUSE OF ' FHE STRENGTH OF THE FARH SF1P
[ HIS TURNAROUND FROM DECLINE THiROU( GH 1982-83 TO VIGOROUS
EXPANSION THROUGH 1983-84 IS REMARKABLE.
A'ND ALL THE SIGNS ARE THAT THE BUJDGET FORECASTS W', ILL BF
ACHIEVED AND POSSIBLY SURPASSED,
IT IS PARTICULARLY STIR 1KNG THAT Et-PLOYMEN I GN) OWTH SI NCE
THE SUMIMIT IN APRIL CONIT! NHES TO BtRELATIVELY STRONG AND
EVERY INDICATION IS THAT THIS WILL CONTINUE IN THE YEAR . XHF-A1T'
THE MOST lI-PO.-TArNT T--Ac K FOR THE GVPM2TH> ER I S
-0 " P, 3ADEN TH REC( OV. LR) Y A; D zUS AI ii I NIITC' li i FUTURL.
THIS 11. L 1RFQOJ: RE A SCr. ON-; GRWNGIC D'S
IT IS MY GOVERNMENT'S FIRM VIEW THAT , TRON(, MANHiFArful I N
AND SERVICE INDUSTRIES ARE NECESS'RY FOR IHE ACHIEVEMENT
OF FULL EMPLOYMENT AND HIGH STANDARDS OF LIVING FOR ALL
AUSTRALIANS, ACHIEVE THIS NEEDS ACTION IN SEVERAL AREAS,
FIRSTLY, THE RECOVERY IN ECONOMIC ACTIVITY MUST PROGRESS
SMOOTHLY AND NOT BE ABORTED BY THE EMERGENCE OF BOTTLENECKS
IN SPECIFIC AREAS,
THIS WILL REQUIRE THAT ALL MAJOR SECTORS CONTRIBUTE TO THE
CURRENT EXPANSION IN ACTIVITY,
WE MUST BUILD ON THE RECOVERY NOW-BEGINNING AND ENSURE
THAT IT IS BROADLY BASED AND SUSTAINABLE, RATHER THAN
BASED ON ONE OR TWO SECTORS,
NARROWLY BASED RECOVERIES IN THE PAST HAVE OFTEN BEEN SHORTLI
VED,
IN ADDITION TO THESE INDUSTRY-BASED CONCERNS, MACRO-ECONOMIC
POLICIES HAVE TO BE SET TO CREATE A STABLE CLIMATE FOR
INTEREST RATES, COSTS AND PRICES,
WITHOUT THIS STABILITY WE COULD REPEAT ThE EXPERILINCE OF
THE PAST DECADE WHERE RECOVER I -S WERE ABORTED,
IWITHOUT INVESTMENT THE ECONOMY CANNOT LXPERIENCE LONG
PERIODS OF STRONG GROWTH.
NORi CAN COMPANIES ADOPT THE INNOVATIVE APPROACH REQUIRED
TO MAINTAIN COMPETITIVENESS,
MY GOVERNMENT IS AWARE OF THE PARTICULAR IMPORTANCE OF
INTEREST RATES TO THE BUSINESS SECTOR AND THAT INTEREST
RATES ARE A SIGNIFICANT DETERMINANT OF A FIRM'S
WILINGNESS TO INVEST AND EXPAND.
To EASE THE POSSIBLE PRESSURE ON INTEREST RATES ARISING
FRDM A LARGE PUBLIC SECTOR BORROWING REQUIR:-MENT OCCURRING
AT THE SAME TIME AS PRIVATE SECTOR DEMAND FOR FUNDS RECOVERS,
WE HAVE BROUGHT FORWARD MUCH OF THE'FINANCING OF THIS YEAR'S
BUDGET DEFICIT TO PROVIDE FOR THE POSSIBILITY OF A
RECOVERY OF PRIVATE BORROWINGS IN THE FIRST 1I'LF OF THE
NE-i YEAR,
AS THE PRIVATE SECTOR'S DEMAND FOR FU'DS INCREASES THE
COMMONWEALTH WILL BE SFKING TO LIMIT ITS OWN nEMANDS IN
THE CAPITAL MARKETS,
IN THE YEAR AHEAD THE , RA1E OF INFLAl ION SHOULD BE 31S( NIFICANTLY
LDWER THAN IN PREVIOUS YEARS, THIS LOWERING OF THE INFLATION
RATE COMES AT THE SAME TIME AS THERE ARE PRESSURES IN ; ANY
OVERSLAS COUNTRIES FOR AN UPWARD MOVEMENT IN PRICES AND
WILL CONTRIBUTE TO THE COMPETITIVENESS OF AUSTRALIAN INDUSTRY,
TO TAKE FULL ADVANTAGE OF FHE RE7' UCTION IN INFLATION, WE
HAVE TO ESTABLISH A CLIMATE WHERE INFLATION AND INFLATIONARY
EXPECTATIONS STAY ON A DOWNWARD PATH.
IHE PRICES AND INCOME ACCORD IN CONJUNCTION WITH THE OTHER
MACRO-ECONOMIC POLICIES WE HAVE ADOPTED IS THE ONLY WAY TO
ACHIEVE THIS.
IMPLEMtENTATION OF THE ACCORD WILL, . OF COURSE, REQUIRE THE
SUPPORT OF THE WHOLE COMMUNITY.
A FUNDAMENTAL PART OF THE ACCORD IS FULL COMPLIANCE WITH
THE RECENTLY AN. OUNCED WAGE-SETTING PRINCIPLES OF THE
ARBITRATION COMMISSION AND MODERATION IN NON-WAGE IN; COME CLAIMS.
MR HOWARD'S SUGGESTION THAT A COALITION GOVERNMENT WOULD
AMEND THE COMMONWEALTH CONCILIATION AND ARBITRATION ACT
TO PERMIT EMPLOYERS AND EMPLOYEES " TO EXCLUDE THEMSELVES
FROM THE AMBIT OF THE COMMONWEALTH CONCILIATION AND
ARBITRATION SYSTEM", RATHER THAN HAVING THE EFFECT OF
ENSUFING COMPARATIVE WAGES JUSTICE WOULD INSTEAD MAKE
ITS ACHIE'VLM; ENT VIRTUALLY IMPOSSIBLE,
A CENTRAL ISED SYSTEM IS ABSOLUTELY Ni CFSSARY 13O 1H1 FOR THE
MAINTENANCE OF A STABLE INDUSTRIAL E-NVIRONMENT AND FOR THE
PREF; ERVATION OF CONDITIONS CRITICAL TO A RAPID ECONOMIC
RECOVERY. IF THE UNIONS ARE TO BE ASKED TO GIVE A ' COMMITMENT TO WAGES
RESTRAINT, THEY MUST BE SECURE IN THE KNOWLEDGE THAT
RESTRAINT WILL BE SHARED EQUITABLY ACROSS THE BOARD
EQUALITY OF SACRIFICE UNDERPINS THE ACCORD AND IS MADE
CREDIBLE THROUGH THE COMMISSION.
THERE IS ALSO A NEED TO CHANGE PAST APPROACHES IN THE AREA
OF INDUSTRY POLICIES.
OUR POLICIES IN THIS AREA ARE DESIGNED-TO REINFORCE THE GROWTHl
OF INDUSTRIES, TO IMPROVE THE EFFICIENCY OF THESE INDUSTRIES
AND TO DEVELOP A FAIR AND EQUITABLE BUSINESS ENV'IRONMENT.
FIRST, LET ME OUTLINE My GOVERNMENT'S POSITION WITH RESPECI
TO EFFICIENCY.
AS A SOCIETY AND NATIONAL ECONOMY, AUSTRALIA MUST BE MORE
CAREFUL THAN IN THE PAST TO ALLOCATE RESOURCES TO THEIR
MOST PRODUCTIV'E USES.
MY GOVERNMENT RECOGNISES THE NEED FOR EFFICIENT AND
COMPETITIVE INDUSTRIES,
OUR GENERAL APPROACH IN THIS AREA IS TO ENCOURAGE THE
DEVELOPMENT OF A COMPETITIVE ENVIRONMENT FOR FIRMS,
BUT TO INTERVENE WHERE THIS IS NECESSARY TO CORRECT MARKET
FAtLURF, OR TO ACHIEVE EQUITY,
WE HAVE IN THE PAST FAILED TO GRASP OPPORTUNITIES TO IMPROVE
ECONOMIC CONDITIONS IN AUSTRALIA AS A WHOLE BECAUSE, ON OCCASIONS,
THERE HAS BEEN A SHORT-SIGHTED INSISTENCE THAT SHORT-TERM SECTIONAL
INTERESTS SHOULD COME FIRST.
WHILE THERE ARE MANY POINTS ON WHICH I WOULD FIND MYSELF AT
ODDS WITH THE INDUSTRIES ASSISTANCE { OMMISS ION, I DO AGREE
WITH IT THAT:
INCREASES IN REAL WEALTH, AND THUS IN THE LIVING
STANDARDS OF AUSTRALIANS, DEPEND IMPORTANTLY ON
ENCOURAGING THE DEVELOPMENT OF LOCAL INDUSTRIES WHICH
USE THE COMMUNITY'/ S BASIC RESOURCES OF LABOURi CAPITAL
AND LAND MOST EFFICIENTLY.
THE EFFICIENT ALLOCATION OF RESOURCES BETWEEN INDUSTRIES
REQUJIRES CHANGES IN THE TRUCTURE OF INDUSTRY AS THE
ECONOMIC ENVIRONMENT CHANGES, THUS IMPROVED LIVING
STANDARDS AND ECONOMIC GROWTH REQUIRE AN IND" STRY
STRUCTURE WHICH HAS THE FLEXIBILITY TO RESPOND TO
CHANGING ECONOMIC CIRCUMSTANCES,."
THI BRINGS US TO THE POINT OF ASKING, IF THESE OBJECTIVE-S
ARE * TO BE REACHED, WHAT SORT OF POLICIES ARE MOST APPROPRIATE,
AND IN PARTICULAR WHAT TYPE AND L[ VEL OF PROTECTION SHOULD
BE AFFORDED AUSTRALIAN INDUSTRY?
WHILE OVER THE LONGER TERM AUSTRALIA HAS BEEN GRADUALLY REDUCING
THE PROTECTION AFFORDED LOCAL PRODUCERS IN THE RECENT PAST
THIS HAS BEEN REVERSED.
THE IAC HAS NOTED IN ITS LATEST ANNUAL REPORT THAT THE
AVERAGE EFFECTIVE RATE OF ASSISTANCE AFFORDED TO MANUFACTURING
INDUSTRY INCREASED FROM 23 PER CENT IN 1977-78 TO 26 PER CENT
IN 1981-82.
THIS INCREASE HAS RESULTED MAINLY FROM ASSISTANCE PROVIDED
BY WAY OF QUOTA PROTECTION'TO THE CLOTHING AND FOOTWEAR AND
MOTOF VEHICLE INDUSTRIES,
LET tIE FIRST SAY THIS MUCH: MY GOVERNMENT HAS ALREADY
INDICATED THAT ! T WILL NOT REDUCE PROTECTION INDUSTRY
DURING THE CURRENT ECONOMIC CRISIS,
NOTWIiHSTANDING THIS, THE GOVERNMENT IS LOOKING FORWARD
TO FUTURE OPPORTUNITIES TO REDUCE PROTECTION TO THE MOST
HIGHLY ASSISTED INDUSTRIES IN AN ENVIRONMENT OF CONFIDENCE
AND SUSTAiNEP CROWTH,
R).
IN VIEW OF THE COSTS OF ADJUSTMENT AND DISLOCATION ASSOCIATED,
WITH REDUCTIONS IN PROTECTION, ANY SUCH REDUCTIONS WILL BE
INTRODUCED CAREFULLY AND GRADUALLY,
A STEADY AND WELL CONSTRUCTED PROGRAM OF REDUCTIONS IN
PROTECTION WILL RESULT IN SHORT TERM COSTS,
HOWEVER, THE GOVERNMENT CONSIDERS THAT SUCH AN APPROACH.,
PROPEFLY ENGINEERED, CAN MINIMISE SHORT TERM DISLOCATION.
FURTHERMORE, AND MORE FUNDAMENTALLY, WE CONSIDER THAT ULTIMATELY
THE LONG TERM REALITIES OF INDUSTRY PROTECTION MUST BE
ADDRESS ED.
THE REALITY OF PROTECTION IS THAT ALL PROTECTION INVOLVES
A COST THAT MUST BE BORNE -1Y EITHER THE CONSUMER OR THE
TAXPAYER, HOWEVER, THAT IS NOT THE END OF THE EQUATION.
IF AUSTRALIA IS TO GRASP ITS OPPORTUNITIES IN THE
INTERNATIONAL ARENA, AN EFFICIENT AND COMPETITIVE INDUSTRIAL
B3ASE IS ESSENTIAL.
AS I MENTrIONED RECENTLY IN BANGKOK, AUSTRALIA IS IN A
UNIQUE POSITION IN THE WORLD.
OUR PROXIMITY TO THE GROWING MAPKETS OF ASIA AND THE
PACIFIC PRESENTS THIS COUNTRY WITH ENORMOUS PROSPECTS FOR
TRADE,. WHICH WOULD BENEFIT BOTH AUSTRALIA AND OUR TRADING
PARTIJERS. HOWEVER, TO REALISE THIS POTENTIAL,. WE MUST MEET THE
CHALLENGES THAT LIE BEFORE US,
THE ONLY WAY THAT WE CAN TAKE ADVANTAGE OF THESE TRADING
OPPORTUNITIES AND CONSEQUENTLY MAXIMISE OUR NATIONAL INCOME,.
IS IF WE ARE PREPARED TO REDUCE PROTECTION AND ENCOURAGE
OUR MOST EFFICIENT INDUSTRIES.
OUR POLICIES WILL BE DESIGNED TO ENCOURAGE THE EXPANSION OF
OUR MOST PRODUCTIVE INDUSTRIES AND 7O PROMOTE STRONG GROWTH
IN THE PRODUCTIVITY OF ALL INDUSTRIES.
THIS BRINGS ME TO THE ROLE OF NEWq TECHNOLOGY IN AUSTRALIA,
THERE IS A CLEAR DISTINCTION WHICH NEEDS TO BE DRAWN BETWEEN
THE DEVELOPMENT OF NEW TECHNOLOGY AND THE USE OF NEW TECHNOLOGY
BY EXISTING INDUSTRIES,. BOTH OF WHICH HAVE AN IMPORTANT ROLE
TO PLAY IN IMPROVING PRODUCTIVITY.
THE U'SE OF NEW TECHNOLOGY By AuSTRALIAN INDUSTRY, AS IT
BECOMES AVAILABLE, OFFERS THE POTENTIAL TO MAINTAIN INDUbFI;' kE,
COMPETITIVENESS AND ALLOWS INDUSTRY TO GROW.
HOWEVER, NOT ONLY DOES INVESTMENT IN NEW TECHNOLOGY OFFER
ADVANTAGES; FAILURE TO USE THE REST AVAILABLE TECHNOLOGY
WILL PREVENT US FROM ENJOYING THE IENEFITO" IN TERMS OF
HIGHER LIVING STANDARDS THAT THIS TECHNOLOGY OFFERS,
WHILE LARGE INVESTMENTS WILL BE REQUIRED TO ADOPT NEW
TECHNOLOGY, WITHOUT THAT INVESTMENT, B USINESS COMPETITIVENESS
WILL SUFFER, INDUSTRIES WILL STAGNATE, AND THE NATION WILL
BE DEPRIVED OF THE BENEFITS OF ECONOMIC GROWTH BROUGHT ABOUT
BY THE EMERGENCE OF NEW INDUSTRIES AND THE REVITALISATION OF
EXISTING INDUSTRIES.
THERE IS NO REAL ALTERNATIVE TO STAYING ABREAST OF NEW/
TECHNOLOSY ABROAD.
OBVIOUSLY THE GOVERNMENT RECOGNISES THAT THERE ARE PROBLEMS
ASSOCIATED WITH THE USE OF NEW TECHNOLOGY,
THE INTRCDUCTION OF SUCH TECHNOLOGY MAY LEAD To DIRECT DISPLACEMENT
OF LABOUR.
AT THE SAME TIME HOWEVER, WE MUST RECOGNISE THE POSITIVE AND
D'JRECT IM'? ACT ON EMPLOYMENT GENERATED BY THE DEVELOPMENT
AND INTRODUCTION OF NEW TECHNOLOGY.
THE GROWTH IN REAL INCOME ASSOCIATED WITH TECHNOLOGICAL
CHANGE AND THE ASSOCIATED ECONOMIC GROWTH SHOULD IMPROVE THE OVERALL
DEMIAND FOR LABOUR,
13,
DEMAND WILL ALSO BE STIMULATED BY THE PROSPECTS OF REAL
PRICE REDUCTIONS BROUGHT ABOUT BY THE IMPROVEMENT TO
EFFICIENCY ASSOCIATED WITH NEW TECHNOLOGY.
THE INTRODUCTION OF NEW TECHNOLOGY NEEDS TO OCCUR IN A
BALANCED MANNER, AND FOLLOWING CONSULTATION BETWEEN
EMPLOYERS, UNIONS AND GOVERNMENT,
IN THIS WAY THE BENEFITS FROM THE INTRODUCTION OF NEW
TECHNDLOGY AND THE SOCIAL COSTS ASSOCIATED WITH THE
CHANGE ARE MOST LIKELY TO BE ACCOMMODATED.
IN ADDITION TO INDUSTRY TAKING FULL ADVANTAGE OF AVAILABLE
TECHNOLOGY, THERE IS A PLACE FOR INNOVATIVE AUSTRALIAN
FIRMS TO CAPITALISE ONNEW DISCOVERIES AND APPLICATIONS
TO BUILD FOR THEMSELVES A NICHE IN THE EXPANDING MARKET
FOR HIGH TECHNOLOGY PRODUCTS,
THE GCVERNMENT RECOGNISES THE NATIONAL BENEFITS OF THE
EMERGENCE OF VIGOROUS, COMPETITIVE, HIGH TECHNOLOGY
INDUSTRIES IN TERMS OF STIMULATING GROWTH AND HAS MOVED
TO ASSIST THESE INDUSTRIES,
PERHAP S THE MOST IMPORTANT FORM OF SUCH ASSISTANCE IS
THE E[ COURAGEMENT TO THE DEVELOPMENT OF A VENTURE CAPITAL
MARKET it-AUSTRALIA TO FUND THESE HIGH RISK VENTURES.
THiIs BRINGS ME TO THE LAST ASPEC-T OF OUR INDUSTRY POLICY:
THE DEVELOPMENT OF A FAIR AND EQUITABLE BUSINESS ENVIRONMENT,
ONE PARTICULAR FEATURE OF OUR POLICY FRAMEWORK IS DIRECTED
TOWARDS SMALL BUSINESS.
THE GOVERNMENT RECOGNISES THAT SMALL ENTERPRISES PLAY A VITAL
ROLE IN GENERATING INVESTMENT AND EMPLOYMENT OPPORTUNITIES,
IN PROMOTING COMPETITION AND IN PROVIDING THE MEANS FOR
ENTRY INTO BUSINESS OF NEW ENTREPRENEURIAL TALENT,
THIS GOVERNMENT ALSO RECOGNISES.. HOWEVER, THAT SMALL FIRMS
MAY BE PLACED AT A DISADVANTAGE PURELY BECAUSE OF THEIR
SMALL SIZE.
ADDRESS THIS PROBLEM, WE HAVE ACTED TO INCREASE THE
AVAILABILITY OF FINANCE FOR SMALL FIRMS,
BOTH THE COMMONWEALTH DEVELOPMENT BANK AND THE AUSTRALIAN
I\ DUSTRY DEVELOPMENT CORPORATION HAVE BEEN GIVEN GREATER
SCOPE TO BORROW FUNDS FOR ON-LENDING TO FIRMS,
151
IN ADDITION, THE NATIONAL COMPANIES AND SECHRITIES COMMISSION
IS CURRENTLY CONSIDERING A PROPOSAL FOR AN OVER-THECOUNTER
MARKET FOR UNLISTED SHARES IN SMALL PUBLIC COMPANIES.
FOR THE GoVERNMENT'S PART WE ARE MOVING TO IMPROVE COMMUNICATION
BETWEEN THE SMALL BUSINESS SECTOR AND THE GOVERNMENT.
WE ARE KEEN TO ENSURE THAT WE RECEIVE ADVICE FROM PEOPLE
WORKING IN SMALL FIRMS ON SOLUTIONS WHICH ARE APPROPRIATE
TO CURRENT PROBLEMS EXPERIENCED BY SMALL BUSINESS.
THE APPOINTMENT OF A REPRESENTAT! VE FROM SMALL BUSINESS TO
EPACJ REPRESENTS THE ESTABLISHMENT OF AN IMPORTANT CHANNEL
OF COMMUNICATION BETWEEN SMALL BUSINESS AND GOVERNMENT,
ON ThE MORE GENERAL ISSUE OF EQUITY, THE GOVERNMENT HAS JUST
COMPLETED A REVIEW OF CERTAIN PARTS OF THE TRADE PRACTICES ACT.
THE GOVERNMENT HAS UNDERTAKEN THIS REVIEW FOLLOIUNG
CRITICISMS OF PARTS FOUR AND FIVE OF THE ACT A, IT CURRENTLY
STANDS., AND IN THE BELIEF THAT ALL MEMBERS OF THE COMMUNITY
SHOULD BE PROTECTED FROM MISUSE OF MARKET POWER.
HOWEVER, WE ARE CONCERNED TO ENSURE THAT THE PROVISIONS
OF ii4E ACT SHOULD NOT STIFLE HEALTHY COMPETITION NOR INVOLV
DROHIEITIVE COMPLIANCE COSTS.
WE PROPOSE TO RELEASE BEFORE THE END OF THE YEIAR AN EXPOSURE
DRAFT TO ELICIT PUBLIC COMMENT ON THE PROVISIONS OF AN AMENDING
B ILL.
YOU WOULD APPRECIATE THAT IN PROCEEDING THIS WAY THE GOVERNMENT
IS INTERESTED IN THE WIDEST POSSIBLE CONSULTATION WITH INTERESTED
PARTIES. THE EXPOSURE DRAFT OFFERS A SPECIFIC BASIS UPON WHICH COMMEINTS
CAN BE DEVELOPED.
My GOVERNMENT' S AIM, AT LEAST IN PART, IS TO ENSURE THE
MAINTENANCE OF COMPETITIVE MARKETS BY PROHIBITING UNFAIR
BUSINESS PRACTICES.
WAE BELIEVE THAT FAIR COMPtTITION IS ESSENTIAL IF EFFICIENT
FIRMS, WHICH COULD BE THREATENED BY LESS EFFICIENT BUT
MORE POWERFU4 COMPETITORS, ARE TO SURVIVE,
IN CONCLUJSION, LET ME STRESS THAT NONE OF THE THREE ASPECTS
CF THE GoVERNMENT'S INDUSTRY POI ICY CAN ALONE PRODUCE A
PANACEA FO0R OUR INDUSTRY PROBLEMS.
PIDREOVER, GOVERNMENTS ACTING IN ISOLATION CANNOT HOPE TO
ACHIEVE THE NECESSARY CLIMATE FOR INDUJSTRY DEVELOPMENT,
17,
TO BE A SUCCESS, INDUSTRY POLICY REQUIRES COMMITMENT AND
CO-OPERATION FROM GOVERNMENTS, EMPLOYERS AND UNIONS.
THE CHALLENGE IS TO DEVELOP A COMPETITIVE INDUSTRY WHICH
WILL CONTRIBUTE TO THE IMPROVEMENT OF OUR STANDARDS OF LIVING
AND TO A STRONG AND PROSPEROUS AUSTRALIA,
LET US JOIN TOGETHER IN MEETING THIS CHALLENGE.