Check against
DeliveryJj) AUSTRALIA
SPEECH BY THE PRIME MINISTER TO THE ALP POST-BUDGET BREAKFAST
MELBOURNE 21 AUGUST 1985
LAST NIGHT PAUL KEATING DELIVERED OUR THIRD BUDGET.
LIKE OUR FIRST TWO BUDGETS, IT IS A BUDGET FOR JOBS AND
GROWTH JOBS FOR TODAY AND JOBS FOR THE LONG TERM,
IT IS A BUDGET WITH A CLEAR DIRECTION, CONSISTENT WITH
OUR OVERALL ECONOMIC STRATEGY,
ANn IT IR A RIInFT nF RFFRM IN PAPTWIII AP PFFAM nA
OUR PROGRAMS IOR YUUNG PEOPLE SO AS 10 ADDRESS THL MAJOR
ECONOMIC AND SOCIAL ISSUE OF OUR TIME-YOUTH UNEMPLOYMENT
AND DISILLUSIONMENT#
BUT, THIS IS AN HISTORIC BUDGET IN ANOTHER QUITE FUNDAMENTAL
SENSE. THIS BUDGET HANDSOMELY FULFILS THE STRINGENT TRILOGY
OF FISCAL COMMITMENTS MADE IN THE LAST ELECTION CAMPAIGN.
COMMITMENTS WHICH NO OTHER GOVERNMENT HAS EVER HAD THE
CONFIDENCE TO MAKEj COMMITMENTS WHICH THE SCEPTICS SAID
COULD NOT BE FULFILLED.
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IN PLEDGING THAT WE WOULD NOT INCREASE TAX REVENUE, AND
WOULD REDUCE SPENDING AND THE DEFICIT, IN PROPORTION TO
GDP, WE SET OURSELVES CONDITIONS WHICH HAVE ONLY BEEN MET
TWICE BEFORE IN THE PAST QUARTER CENTUR~ Y BUT WE MET THEM.
IN ADDING TO THESE COMMITMENTS THE FURTHER UNDERTAKING TO
REDUCE THE DEFICIT IN MONEY TERMS FOR 1985-86, WE SET
OURSELVES CONDITIONS WHICH HAD NOT BEEN MET FOR SIXTEEN
YEARS BUT WE MET THEM@
IT IS WORTH RECALLING THE RATIONALE FOR THAT UNPRECEDENTED
SET OF COMMITMENTS AND THE ECONOMIC POLICY CONTEXT IN WHICH
THEY ARE SET.
CAST YOUR MIND BACK TO THE EARLY MONTHS OF 1983.
AUSTRALIA HAD ENDURED SEVEN LONG YEARS OF LIBERAL RULE,
RULE BASED ON CONFRONTATION AND DIVISION WHICH REAPED A
DEBILITATING WAGE-PRICE SPIRAL AND ECONOMIC STAGNATION.
RULE WHICH EARNED FOR JOHN HOWARD * THE DUBIOUS HONOUR OF BEING
THE ONLY TREASURER IN AUSTRALIA'S HISTORY TO* PRESIDE OVER
BOTH DOUBLE-DIGIT INFLATION AND DOUBLE-DIGIT UNEMPLOYMENT.
THEIR APPROACH SHARPLY ESCALATED REAL UNIT LABOUR COSTS AND
DROVE THE PROFIT SHARE, IN THE SECOND HALF OF 1982, DOWN TO
A RECORD LOW OF LESS THAN 12 PER CENT. s60/ 3
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THEIR APPROACH DESTROYED OUR INTERNATIONAL COMPETITIVENESS@
IT REAPED A WHIRLWIND OF INDUSTRIAL D[ SLOCATION AND
DISHARMONY. AS THEY STROVE TO FIGHT INFLATION WITHOUT AN INCOMES POLICY
BY HOLDING THE EXCHANGE RATE ARTIFICIALLY HIGH, THEY WENT
CLOSE TO BREAKING THE BACK OF OUR GREAT MANUFACTURING,
MINING AND RURAL INDUSTRIES.
OVER THE 7 YEARS OF LIBERAL RULE, NON-FARM GDP AVERAGED
GROWTH OF ONLY 2.4 PERCENT PER ANNUM. EMPLOYM'ENT CREPT UP
AT AN AVERAGE RATE WELL BELOW THE GROWTH IN THE LABOUR FORCE
AS A RESULT, UNEMPLOYMENT ROSE INEXORABLY, IN EARLY 1983,
MOST COMMENTATORS THOUGHT THAT THERE WAS LITTLE PROSPECT OF
ACHIEVING SUSTAINED GROWTH AT A PACE FAST ENOUGH TO STOP
TIIE RISE OF UNEMPLOYMENT, LET ALONE TO REDUCE THE DOLE QUEUES,
WE PROMISED IN 1983 TO SEEK RECONCILIATION AND CONSENSUSTO
GET AUSTRALIANS WORKING TOGETHER AGAIN,
WE BROUGHT To GOVERNMENT AN. ECONOMIC POLICY BASED ON. THE
ACCORD, PROGRESSIVELY LESS STIMULATORY FISCAL POLICY, AND
RESPONSIBLE MONETARY POLICY. ISI/ 14
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WE SET OURSELVES SEVERAL INTER-RELATED GOALS: TO CREATE
HALF A MILLION JOBS IN OUR FIRST THREE YEARS; TO REDUCE
UNEMPLOYMENT AND INFLAT ION SIMULTANEOUSLY; PERMANENTLY
TO IMPROVE OUR LONG-TERM GROWTH PERFORMANCE BY
CORRECTING STRUCTURAL WEAKNESSES; AND PROGRESSIVELY TO
ACHIEVE A MORE JUST, MORE EQUITABLE SOCIETY.
OUR APPROACH -AND IN PARTICULAR THE EMPHASIS WHICH WE
PLACED ON PRICES AND INCOMES POLICY WAS FRAMED IN
RECOGNITION OF THE ENVIRONMENT WITHIN WHI CH ANY AUSTRALIAN
GOVERNMENT WOULD HAVE TO WORK.
AND I BELIEVE THAT AUSTRALIANS CAN BE PROUD OIF THE FACI
THAT, TOGETHER, WE HAVE MADE SO MUCH PROGRESS TOWARDS
ACHIEVING THESE GOALS.
AUSTRALIA HAS EXPERIENCED ONE OF THE STRONGEST RECOVERIES
OF ALL THE OECD COUNTRIES ALREADY 10 PER CENT GROWTH IN
TWO YEARS.
AND WE ARE LOOKING TO A FURTHER FIVE PER CENT REAL NON-FARM
GROWTH IN 1586-FIVE PER CENT GROWTH IN AUSTRALIA WHILE
THE OECD IS ONLY EXPECTING ABOUT 3 PER CENT FOR THE WORLD'iS
MAJOR INDUSTRIAL COUNTRIES.
THE STRONG GROWTH HAS BEEN THE KEY TO THE 4110,000 NEW JOBS
THAT HAVE BEEN CREATED IN AUSTRALIA SINCE THE NATIONAL
ECONOMIC SUMMIT CONFERENCE IN4 APRIL, 1983.
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IN THIS BUDGET WE HAVE REDUCED THE GROWTH OF REAL OUTLAYS
TO 1.3 PERCENT, THE LOWEST IN 6 YEARS. AND EVEN MORE
IMPRESSIVELY, THIS BUDGET HAS THE LOWEST NOMINAL GROWTH
OF OUTLAYS SINCE 1968-69..
WITH NO INCREASE IN TAX REVENUES AS A PROPORTION OF GDP
WE HAVE, IN THIS BUDGET, REDUCED THE DEFICIT TO
$ 4.9 BILLION A CUT OF $ 1.8 BILLION.
THIS YEAR'S DEFICIT REPRESENTS 2 .1 PERCENT OF GDJP,
SUBSTANTIALLY LESS THAN HALF THE PROSPECTIVE RATIO THAT
WE INHERITED EARLY IN 1983.
AS A RESULT THE GROSS BOND SALES TO THE PRIVATE SECTOR
THIS YEAR ARE EXPECTED TO AMOUNT TO ONLY $ 5 BILLION,
COMiAflED TO $ 7.6 DILL-ION LACT V& An. AND TWAT S5 DILLIONI
INCLUDES $ 3 BILLION OF REFINANCING OF MATURING SECURITIES.
IN CONJUNCTION WITH THE CUTBACK IN STATE AUTHORITIES' BORROWING
PROGRAMS NEGOTIATED WITH THE PREMIERS IN MAY, THIS BUDGET
WILL PERMIT A SHARP REDUCTION IN THE GROSS PUBLIC SECTOR
BORROWING REQUIREMENT IN 1985-860
SUCH A REDUCTION WILL HELP TO REDUCE PRESSURES ON REAL INTEREST
RATES FROM THIS SOURCE AND HELP TO BRING MONETARY AND FISCAL
POLICY INTO BETTER BALANCE.
THIS REDUCTION WILL HELP TO UNDERPIN DOMESTIC INVESTMENT
AND CREDIT-SENSITIVE CONSUMPTION EXPENDITURES AND CONTRIBUTE
TO A FIRM BASIS FOR ON-GOING ECONOMIC. GROWTH.
WE HAVE CREATED 70,000 MORE JOBS SINCE THE SUMMITr THAN
THE FRASER GOVERNMENT MANAGED. IN 7 YEARS. OUR THREE
YEAR TARGET OF 500,000 IS NOW COMFORTABLY WITHIN REACH,
AND THE UNEMPLOYMENT RATE, WHICH HAS ALREADY FALLEN BY
2 PERCENTAGE POINTS, IS EXPECTED TO FALL FURTHER THIS YEAR
To 7-1/ 2 OR, AT WORST, 8 PER CENT.
AT THE SAME TIME, EVEN THOUGH THERE HAS BEEN SOME PICK UP
RECENTLY IN RESPONSE TO DEPRECIATION, THE ANNUAL INCREASE IN
PRICES IN THE PAST YEAR WAS THE LOWEST SINCE 1970-71.
INDUSTRIAL DISPUTATION IS AT ITS LOWEST FOR ONE AND A HALF
DECADES, BUSINESS PROFITABILITY HAS BEEN RESTORED. REAL
UNIT LABOUR COSTS HAVE BEEN REDUCED TO LEVELS LAST SEEN IN
THE EARLY
WE RECOGNISE THAT, WHILE FISCAL PUMP PRIMING WAS APPROPRIATE
WHILE ECONOMIC ACTIVITY IN THE PRIVATE SECTOR WAS WEAK, IT
IS NO LONGER NECESSARY OR APPROPRIATE FOR THE PUBLIC SECTOR
TO SHOULDER SO MUCH RESPONSIBIL. ITY.
CONSISTENT WITH OUR FISCAL TRILOGY WE HAVE,-IN THIS BUDGET,
REDUCED THE SHARE OF COMMONWEALTH OUTLAYS IN GDP BY A FULL
PERCENTAGE POINT, AS THE MAY MEASURES AMPLY DEMONSTRATE,
THIS IS THE RESULT OF RIGOROUS EXPENDITURE PRUNING AND FIRM
CONTROL OVER NEW PROGRAMS, a. 16
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LET ME SAY A LITTLE MORE ABOUT THE STRENGTH OF RECOVERY
IN 1985-86o AND THE FACTORS WHICH WILL SHAPE OUR GROWTH
PROSPECTS BEYOND THAT.
A PLEASING FEATURE OF THE ECONOMIC OUTCOME IN 1984-85 WAS
THE CONSISTENT GROWTH IN PRIVATE SECTOR ACTIVITY ACHIEVED
THROUGH THE COURSE OF THE YEAR.
REAL PRIVATE CONSUMPTION EXPENDITURE GREW AT AN ANNUAL RATE
OF 5.5 PER CENT IN THE SECOND HALF OF 19841-5, UP FROM
3.7 PER CENT IN THE FIRST HALF. BUSINESS INVESTMENT GREW
STEADILY AT AN ANNUAL RATE OF 4I PER CENT.
MOST PLEASING OF ALL WAS THE HUGE PRIVATE SECTOR CONTRIBUTION
TO EMPLOYMENT GROWTH.
SOME 90 PER CENT OF THE GROWTH IN EMPLOYMENT WHICH OCCURRED
IN THE YEAR TO THE MARCH QUARTER ( THE LATEST FOR WHICH THE
DISAGGREGATED DATE ARE AVAILABLE) WAS PRIVATE SECTOR EMPLOYMENT,
1985-86 IS FORECAST TO BE ANOTH4ER BUOYANT YEAR FOR THE
PRIVATE SECTOR, UNDERPINNED BY SOLID GROWTH IN PRIVATE
CONSUMPTION AND FASTER GROWTH IN BUSINESS INVESTMENT.
PARTLY REFLECTING THE STRENGTH OF SALES, THE OFFICIAL
FORECASTS ASSUME THAT BUSINESS INVENTORIES DO NOT MAKE MUCH
CONTRIBUTION TO GROWTH IN 1985-86. BUT STOCKS ARE NOW VERY
LOW RELATIVE TO SALES, IN HISTORICAL TERMS, AND THERE IS A
CHANCE THAT WE WILL DO BETTER THAN THE FORECASTS ON THIS POINT.
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A SIGNIFICANT FACTOR IN THE OUTLOOK FOR 1985-86 AND
BEYOND IS THE RECENT DEPRECIATION OF THE AUSTRALIAN DOLLAR,
WE,. AS A COMMUNITYA HAVE A REAL CHANCE TO MAKE A DECISIVE
BREAK WIT11 THE CONSEQUENCES OF PAST POOR COMPETITIVENESS&
OUR MANUFACTURING INDUSTRIES NOW HAVE A REAL CHANCE
SUBSTANTIALLY TO INCREASE THEIR SHARES OF DOMESTIC DEMAND.
AND OUR MANUFACTURING, RURALo MINING AND SERVICE INDUSTRIES
NOW ARE WELL PLACED TO DO MUCH BETTER ON EXPORT MARKETS.
IHAVE SUGGESTED BEFORE THAT WE COULD CREATE 100,000 NEW
JOBS FOR AUSTRALIANS IF WE RETAIN AND UTILISE OUR NEWLY
STRENGTHENED COMPETITIVENESS.
BUT THE SAME INCREASES IN THE PRICES OF IMPORTED GOODS WHICH
HAVE ALREADY STRENGTHENED THE COMPETITIVENESS OF DOMESTIC
PRODUCERS ARE RAISING CONSUMER PRICES. IF THESE INCREASES
FLOW RIGHT THROUGH TO ALL OUR COSTS WE WILL HAVE LOST OUR
ADVANTAGE. FOR THIS REASON THE GOVERNMENT. WILL BE ARGUING FOR DISCOUNTING
OF THE CPI FOR THE PRICE EFFECTS OF DEPRECIATION
AT THE NEXT TWO NATIONAL WAGE HEARINGS.
WE WILL BE MEETING EMPLOYERS AND UNIONS BEFORE THE NEXT CASE.
TO DISCUSS THE GOVERNMENT IS APPROACH. AS THE TREASURER
INDICATED LAST NIGHT, WE WILL BE EXPLORING WITH THE ACTJ,
WITHIN THE FRAMEWORK OF TH4E ACCORD, MEANS BY WHICH ANY 6Ul./ 9
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TEMPORARY LOSS IN REAL INCOME CAN BE FULLY RESTORED, OVER
TIME, WITHOUT DAMAGING THE ECONOMY6
AS A FURTHER INDICATION OF THE SCALE OF BENEFITS WHICH CAN
BE ACHIEVED IF ONLY THE REAL DEPRECIATION CAN BE PRESERVED,,
THE OECD HAS ESTIMATED THAT NET EXPORTS COULD CONTRIBUTE
1.41 PERCENTAGE POINTS TO GROWTH IN 1985-860 THE BUDGET
FORECASTS INCORPORATE A SLIGHTLY MORE CONSERVATIVE ESTIMATE
OF ONE AND A QUARTER POINTS,
BUT BASED ON PAST EXPERIENCE THE CONTRIBUTION COULD TURN OUT
TO BE HIGHER THAN THAT.
AND WHILE CIRCUMSTANCES MAY VARY, ACROSS INDUSTRIES, MUCH
OF AUSTRALIAN MANUFACTURING CERTAINLY HAS THE CAPACITY TO
RESPOND TO THE BUSINESS OPPORTUNITIES WHICH ARE EMERGING,
BUT WHETHER THOSE OPPORTUNITIES WILL BE PRESENT IN 1986-87
AND BEYOND WILL DEPEND VERY MUCH ON HOW SUCCESSFUL WE ARE AT
CONTAINING INFLATIONARY PRESSURES IN THE AFTERMATH OF
DEPRECIATION.
Tiic BUDGFT rSTIMATES OF OUTLAYS AND REVENUE ASSUME CONTINUED
FULL INDEXATION 01-WAbhS TO im1IAi 1
IF INSTEAD AND AS WE WOULD HOPE THE CONCILIATION AND
ARBITRATION COMMISSION IS PERSUADED TO TAKE ACCOUNT OF THE
EFFECTS OF DEPRECIATION, THE BUDGET DEFICIT WOULD BE SOME
$ 350M HIGHER.
IN A SPEECH TO THE ECONOMIC SOCIETY IN SYDNEY A COUPLE OF
WEEKS AGO, I DESCRIBED HOW OUR MONETARY POLICY IS FIRMLY
DIRECTED TO SUPPORTING STRONG GROWTH BUT NOT ANY RESURGENCE
OF INFLATION. OUR APPROACH TO MONETARY POLICY WAS REAFFIRMED
LAST NIGHT IN THlE BUDGET.
IN ADDITION TO STRENGTHENING THE FOUNDATIONS OF ECONOMIC
GROWTH, OUR THIRD BUDGET, LIKE ITS TWO PREDECESSORS, IS
A BUDGET OF REFORM IN AN EVEN WIDER SENSE.
WE HAVE FOCUSED STRONGLY ON THE MAJOR ECONOMIC AND SOCIAL
CONCERN OF OUR TIME THE POSITION OF YOUNG PEOPLE.
As I SAID IN MY ADDRESS ON SUNDAY NIGHT, WE MUST NURTURE
THE TALENTS OF YOUNG AUSTRALIANS. THEIR ENTHUSIASM,
THEIR BRAINS, THEIR VISION CAN LIFT THIS COUNTRY TO THE
FRONT LINE OF THE WORLD'IS INDUSTRIAL POWERS$
BUT SO OFTEN WHEN WE HAVE SPOKEN TO YOUNG PEOPLE WE HAVE DETECTED
A SENSE OF FRUSTRATION AND ANGER BECAUSE A DISTURBING NUMBER
FEEL THAT THEY HAVE NOT BEEN GIVEN A CHANCE. I. I. I 11
1.-
IN THIS BUDGET my GOVERNMENT HAS GIVEN EFFECT TO A
CO-ORDINATED STRATEGY TO GIVE YOUNG PEOPLE THAT CHANCEESPECIALLY
YOUNG PEOPLE FROM FINANCIALLY POOR OR
OTHERWI SE DISADVANTAGED BACKGROUNDS&
A BETTER TRAINED WORKFORCE MEANS A WORKFORCE WHICH IS MORE
FLEXIBLE AND BETTER ABLE TO RESPOND TO THE CHALLENGES
WHICH LIE AHEAD OF US.
WITH THIS IN MIND WE HAVE REVITALISED ARRANGEMENTS FOR
YOUTH INCOME SUPPORT AND PUT IN PLACE AN IMAGINATIVE NEW
APPROACH TO YOUTH TRAINING PROGRAMS AN APPROACH MODELLED
CLOSELY ON THE RECOMMENDATIONS OF THE KIRBY REPORT,
INVOLVING A MIX OF BOTH ON AND OFF-THE-JOB STRUCTURED
TRAINING AND EDUCATION.
WE WILL BE DEVOTING SUBSTANTIAL ADDITIONAL BUDGETARY RESOURCES
TO THIS TASK. RESOURCES TO PROVIDE AN ADEQUATE LEVEL OF
INCOME SUPPORT; TO PROVIDE 20,500 ADDITIONAL TERTIARY PLACES
OVER THE CURRENT TRIENNIUM; TO SPONSOR TRAINING PLACES
IN THE PUBLIC SECTOR;-AND TO ENSURE THE SUCCESS OF
TRAINEESHIPS IN THE PRIVATE SECTOR.
WE HAVE GIVEN THE LEAD. BUT TO REACH ITS FULL POTENTIAL OUR
SCHEME REQUIRES THE CO-OPERATION OF ALL PARTIES EMPLOYERS,
UNIONS, EDUCATORS AND YOUNG PEOPLE THEMSELVES TO TURN THAT
INITIAL ENTHUSIASM INTO REAL TRAINEESHIPS AND REAL JOBS.
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IASK ALL AUSTRALIANS YOUNG AND NOT SO YOUNG ALIKETO
CAREFULLY CONSIDER THE CHALLENGE WHICH OUR PROPOSALS
INVOLVE, WE NEED YOUR WHOLEHEARTED SUPPORT. BUT WITH
YOUR WHOLEHEARTED SUPPORT WE CAN ENSURE A NEW DEAL FOR
THE COMING GENERATIONS OF AUSTRALIANS.
OF COURSE THIS BUDGET HAS NOT NEGLECTED OTHER AREAS OF
ECONOMIC AND SOCIAL REFORM.
THERE IS GREATLY EXPANDED SUPPORT FOR RESEARCH AND DEVELOPMENT
WITHIN THE MOTOR VEHICLE PLAN,
THERE ARE SUBSTANTIAL INITIATIVES TO EASE THE BURDEN ON
FARMERS IN THEIR TIME OF CRISIS. THESE INCLUDE THE COMPLETE
REMOVAL OF THE EXCISE ON FUEL FOR ELIGIBLE PRIMARY PRODUCERS
AND THE REPLACEMENT OF THE TARIFF ON GRAIN HARVESTERS BY
BOUNTIES ON LOCAL PRODUCTION.
WE HAVE BUILT UPON THE SUBSIANIIAL KtAL 1MPHUVE'IENT3 114
BENEFITS PROVIDED IN PREVIOUS BUDGETS TO PROVIDE MORE
ADEQUATELY FOR OUR MOST NEEDY FELLOW AUSTRALIANS.*
IN PARTICULAR, WE HAVE INTRODUCED A SUPPLEMENTARY PAYMENT OF
PER WEEK FOR LONG TERM UNEMPLOYMENT BENEFICIARIES WHO RENT
PRIVATELY AND WE HAVE FURTHER INCREASED THE ADDITIONAL BENEFITS
PAID TO CERTAIN LOW INCOME FAMILIES WITH CHILDREN.
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THE BUDGET THEREFORE INCORPORATES A CONSISTENT, MEASURED
APPROACH DESIGNED TO PRODUCE A MORE HIGHLY SKILLED, MORE
EFFICIENT AND MORE EQUITABLE AUSTRALIA. AND IT DOES SO
WHILE ALSO SUBSTANTIALLY WINDING BACK THE BUDGET DEFICIT.
BUT LET US BE CLEAR. THIS GREAT FISCAL FEAT IN 1985-86
IS NOT THE OUTCOME OF ANY FISCAL SLEIGHT OF HAND.
THERE IS NO INCREASE IN THE TAX BURDEN. THERE IS NO
ARTIFICIAL FUNDING OF DEFICITS BY WHOLESALE SELLING OF
PROFITABLE ENTERPRISES, AS OUR OPPONENTS WOULD HAVE US DO.
THIS FISCAL OUTCOME HAS BEEN ACHIEVED AFTER A HARD SLOG TO
PRUNE WASTE AND UNNECESSARY EXPENDITURES DATING BACK TO
CHANGES IN PROCEDURES THAT WE INTRODUCED ALMOST A YEAR AGO;
A HARD SLOG TO REORDER PROGRAMS TO TARGET THEM MOST CLOSELY
ON NEED; AND TO CONTAIN NEW PROGRAMS TO THOSE WHICH ARE
ESSENTIAL TO SATISFY THE PRESSING NEEDS OF AUSTRALIA.
IT IS A BUDGET FOR THE FUTURE NOT ONLY BECAUSE IT DELIVERS
THE RIGHT MIX BETWEEN MONETARY AND FISCAL POLICY; NOT ONLY
BECAUSE IT WINDS BACK THE DEGREE OF FISCAL STIMULUS AT A TIME
WHEN THE PRIVATE SECTOR IS SET TO EXPAND STRONGLY! BUT ALSO
BECAUSE IT PUTS IN PLACE MEASURED STRUCTURAL REFORMS DESIGNED
TO RAISE SKILL LEVELS AND PURSUE SOCIAL JUSTICE. 1
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ABOVE ALL, IT IS A BUDGET TO UNDERWRITE A THIRD YEAR OF
STRONG GROWTH
, A THIRD YEAR OF GROWTH WHICH FURTHER DEFIES
AND, I TRUST, SHALL DEFEAT THE PESSIMISM ABOUT
GROWTH THAT DESCENDED UPON AUSTRALIA IN THE
MID-SE VENTI ES.
A THIRD YEAR OF GROWTH FOR AUSTRALIANS TO
LEARN AGAIN THE HUGE REWARDS FOR ALL AUSTRALIANS,
TO BE WON BY COMMUNITY CO-OPERATION WITHIN A
WELL-CRAFTED STRATEGY FOR NATIONAL RECOVERY
AND RECONSTRUCTION,
1SAID AT THE BEGINNING THAT THE FULFILMENT OF THE TRILOGY
ACHIEVED IN THIS BUDGET ITSELF JUSTIFIES PAUL KEATING'S
DESCRIPTION OF His BUDGET LAST NIGHT AS HISTORIC
BUT TIIERE IS MUCH MORE TO IT THAN THAT.
IPROFOUNDLY BELIEVE-THAT IF THE AUSTRALIAN PEOPLE -AND
IN PARTICULAR, AUSTRALIAN BUSINESS AND AUSTRALIAN TRADE
UNIONS RESPOND TO THE OPPORTUNITIES THIS BUDGET OFFERS,
THEN THE 1985-86 BUDGET CAN BE A WATERSHED IN OUR HISTORY.
AND I SAY THAT FOR THIS REASON:
FOR TOO LONG, THE BUDGET-MAKING PROCESS IN AUSTRALIA
LACKED CONSISTENCY,-PURPOSE, AND DIRECTION. UNTIL 1983,
BUDGET AFTER BUDGET FAILED TO PROVIDE ANY COHERENT
FRAMEWORK WITHIN WHICH BUSINESS COULD PLAN OR IN WHICH
THE TRADE UNION MOVEMENT COULD FULFIL ITS RESPONSIBILITIES
OR IN WHICH THE AUSTRALIAN COMMUNITY AS A WHOLE COULD SEE
WITH CONFIDENCE THE FUTURE DIRECTIONS OF AUSTRALIAN
ECONOMIC AND SOCIAL POLICY,
THIS BUDGET, EVEN MORE THAN ITS TWO IMMEDIATE PREDECESSORS,
AND CERTAINLY IN A WAY NEVER ATTEMPTED IN THE BUDGETS
OF THE SIXTIES AND SEVENTIES, DOES ESTABLISH THAT FRAMEWORK
-A FRAMEWORK OF CONFIDENCE AND CONSISTFNCYO OF
DIRECTION AND PURPOSE THAT WILL SERVE AND STRENGTHEN THE
AUSTRALIAN ECONOMY AND THE AUSTRALIAN SOCIETY NOT MERELY
THIS FINANCIAL YEAR, BUT FOR MANY YEARS TO COME.
THIS WILL BE AN HISTORIC ACHIEVEMENT. THIS IS AN
HISTORIC BUDGET. 0I*