PRIME MINISTER
EMBARGOED UNTIL DELIVERY CHECK AGAINST DELIVERY
SPEECH BY THE PRIME MINISTER
COAPANY DIRECTORS' ASSOCIATION OF AUSTRALIA
( QUEENSLAND DIVISION)
BRISBANE 25 AUGUST 1966
ALMOST THREE YEARS AGO TO THE DAY I ADDRESSED ANOTHER
DISTINGUISHED BUSINESS A. UDIENCE HERE IN BRISBANE. ON THAT
OCCASION 1 CONCLUDED WHAT WAS A PRE-BUDGET SPEECH BY
REVEALING THE STRATEGIC THINK( ING BEHIND OUR FIRST BUDGET.
AS I EXPLAINED IT THEN: " WE HAVE NOT REGARDED OUR TASK AS
BEING MERLLY TO DRAW UP AN ANNUAL BUDGET AND THEN TO PRESENT
THAT BUDGET AS THE BE-ALL AND END-ALL OF ECONOMIC POLICY."
" WHAT WIE HAVE DONE AND IT IS UNPRECEDENTED IN AUSTRALIA
IS TO ESTABLISH A COMPREHENSIVE AND INTEGRATED BASIS FOR
CONSISTENT, LONG-TERM ECONOMIC PLANNING."
TODAY, I WOULD LIKE TO REVEAL SOME OF THE STRATEGIC THINKING
BEHIND THIS, OUR FOURTH BUDGET, AND THE CRITICAL ROLE THE
EARLY COMMITM4ENT OF MY GOVERNI4ENT TO LONG-TERM ECONOMIC
RESTRUCTURING HAS PLAYED IN EQUIPPING US TO TACKLE THE
CHALLENGE OF OUR CURRENT EXTERNALLY IMPOSED NATIONAL
ECONOMIC DIFFICULTIES.
LET ME PUT IT DIRECTLY AND PRECISELY AUSTRALIA IS NOW
BETTER ABLE TO DEAL WITH OUR PRESENT STRAITENED TRADING
CONDITIONS BECAUSE WE WERE SO EARLY COMMITTED TO DEVELOPING
AND IMPLEMENTING ECONOMIC REFORMS TO MAKE THIS COUNTRY
BETTER EQUIPPED TO COMPETE ON WORLD MARKETS. IF IT HAD NOT
BEEN FOR THIS FORETHOUGHT AUSTRALIA WOULD NOW BE FACING A
VERY REAL PROSPECT OF A PROLONGED AND DEEP ECONOMIC
RECESSION. INSTEAD, WE ARE IN A POSITION TO FACE UP TO
THESE CHANGED CIRCUMSTANCES WITH CONFIDENCE.
AUSTRALIA HAS ALWAYS BEEN A TRADING NATION WHOSE FORTUNES
HAVE BEEN LARGELY DEPENDENT ON THE HEALTH OF THE
INTERNATIONAL ECONOMY.
THE DEVELOPMENT OF OUR RICH RESOURCE ENDOWMENTS IN LAND,
MINERALS AND ENERGY HAS BEEN THE BASIS FOR OUR EXPORTS AND A
DRIVING FORCE IN THE GROWTH OF OUR ECONOMY AND OF THE
NATION.
UNFORTUNATELY OUR RESOURCE-BASED EXPORTS HAVE ALWAYS BEEN
PRONE TO FLUCTUATIONS IN INTERNATIONAL MARKETS AND, MTORE
IMPORTANTLY, SUSCEPTIBLE TO THE LONG TERM DECLINE IN THE
VALUE OF COM4MODITIES RELATIVE TO PROCESSED GOODS AND
SERVICES.
THIS DECLINE IN OUR TERMS OF TRADE HAS ACCELERATED
DRAMATICALLY OVER THE PAST EIGHTEEN MIONTHS. ESPECIALLY IN
RECENT MIONTHS WE HAVE BEEN HIT BY THE CORRUPT TRADING
PRACTICES OF THE EEC AND THE US.
THE COST TO AUSTRALIA OF THESE CHANGES IN WORLD PRICES IS
CURRENTLY RUNNING AT ABOUT $ 6 BILLION PER ANNUM.
WE HAVE NC CHOICE BUT TO ADAPT TO THIS DECLINE.
BUT WE DO HAVE A CHOICE ABOUT HOW WE ADAPT.
WE COULD PRETEND THAT NOTHING HAD CHANGED AND ATTEMPT TO
MAINTAIN LIVING STANDARDS.
THE RESULT OF TAKING THAT COURSE WOULD HAVE BEEN A MlASSIVE
BOUT OF INFLATION AND CURRENCY INSTAB'LITY WHICH WOULD BE
BROUGHT TO AN END BY AN EQUALLY MASSIVE ECONOMIC RECESSION
AND AN ASSOCIATED REDUCTION IN LIVING STANDARDS.
OR WE CAN LIAXE THE HOST OF THE CURRENT SITUATION:
BY TARING ADVANTAGE OF THE OPPORTUNITIES BEING OFFERED
TO AUSY. i.' ALIAN PRODUCERS BY THE ENHANCED COMPETITIVENESS
RESULTTNG FROM THE FALL IN THE AUSTRALIAN DOLLAR;
BY BEGINNING TO REDUCE THE DEPENDENCE OF THE ECONOMY ON
OUR TRADITIONAL SOURCES OF EXPORT INCOME; AND
BY CREATING THE CONDITIONS TO UNDERWRITE SUSTAINED
GROWTH WELL INTO THE FUTURE.
WHILE I HAVE PAINTED THE ALTERNATIVES RATHER STARKLY THEY
NEVERTHELESS REPRESENT THE CHOICE CURRENTLY FACING
AUSTRALIA. I BELIEVE TRAT, GIVEN PROPER LEADERSHIP, AUSTRALIANS WILL
OPT FOR THZ COURSE THAT TURNS CURRENT ECONOMIC PROBLEMS INTO
SOLUTIONS AND BUILDS ON THE LONG-TERM ECONOMIC REFORM TO
WHICH I HAVC REFERRED.
THE GOVERN; IENT HAS SET ITS ECONOMIC STRATEGY ACCORDINGLY.
LET ME OUTLINE THE KEY ASPECTS OF OUR INTEGRATED APPROACH TO
ECONOMIC MIANAGEMENT.
IN ESSENCE, IS AN APPROACH WHICH COMBINES RESPONSIBLE
FISCAL POLICY WITH REALISTIC WAGES, MONETARY AND INDUSTRY
POLICY. THE BUDGET THAT THE TREASURER INTRODUCED LAST WEEK WILL
FACILITATE THE ADJUSTMENT OF THE ECONOMY TO THESE NEW,
TOUGHER TRADING CONDITIONS.
IN THESE CIRCUMSTANCES RESTRAINT IN SPENDING HAS BEEN
ESSENT" AL TO ALIGN OUR LIVING STANDARDS MORE CLOSELY WITH
OUR CAPACITY TO PRODUCE. THE PUBLIC SECTOR CANNOT BE EXE1MPT
FROM THIS RESTRAINT. ACCORDINGLY, THIS BUDGET INCORPORATES
CUTS ACROSS THE FULL SPECTRUM OF PROGRAMS.
WE HAVE CUT EXPENDITURE BY NEARLY $ 3 BILLION AND HAVE COME
IN WITH A DEFICIT OF $ 3.5 BILLION. COMPARE THAT WITH THE
$ 9.6 BILLION HANDED OVER TO US BY MR HOWARD.
OUTLAYS GROWTH IN REAL TERMS WILL BE ZERO. THIS HAS BEEN
ACHIEVED ONLY TWICE BEFORE IN 30 YEARS.
THE LOW BUDGET DEFICIT MEANS THAT THE COMMONWEALTH
GOVERNMENT'S CALL ON SAVINGS HAS BEEN REDUCED, THEREBY
REDUCING PRESSURES ON FINANCIAL MARKETS.
THE GROSS PUBLIC SECTOR BORROWING REQUIREMENT AS A SHARE OF
GDP IS EXPECTED TO FALL FROM 6.0 PER CENT TO 4.4 PER CENT,
COMPARED WITH A PEAK OF 8.1 PER CENT IN 1983-84.
THIS FALL IN PUBLIC BORROWING WILL PROVIDE SCOPE FOR
INTEREST RATES TO DECLINE. OF COURSE THE TIMING OF THOSE
FALLS DEPENDS UPON A NUMBER OF DEVELOPMENTS IN WORLD
FINANCIAL MARKETS AND ON CONFIDENCE. THE GOVERNMENT CANNOT
CONTROL THESE FORCES. HOWEVER IT CAN AND HAS PUT IN
PLACE POLICIES WHICH MAXIMIZE OUR CHANCES FOR SUCCESS.
SOME CRITICISM OF THE BUDGET HAS BEEN MADE BECAUSE OF THE
RESTRAINT IMPOSED ON PARTICULAR ITEMS OF EXPENDITURE,
ESPECIALLY IN. THE HEALTH AND WELFARE AREAS.
THE ALTERNATIVE TO SUCH RESTRAINT WOULD HAVE BEEN TO LET
ARBITRARY ECONOMIC ADJUSTMENTS FORCED ON US BY A RECESSION
DICTAT2E WHERE THE REDUCTION IN LIVING STANDARDS WOULD BE
CONCENTRATED. INEVITABLY, THE HURT WOULD HAVE FALLEN MOST HEAVILY ON THE
DISADVANTAGED, PARTICULARLY THE UNEMPLOYED.
INSTEAD THIS BUDGET SPREADS THAT ADJUSTMENT FAIRLY ACROSS
THE COMMUNITY.
WHILE SIGNIFICANT SAVINGS WERE MADE IN THE AREAS OF
EDUCATION, HEALTH, SOCIAL SECURITY AND WELFARE AND HOUSING
AND COMMUNITY AMENITIES THESE PROGRAMS WILL ACTUALLY
INCREASE THEIR SHARE OF TOTAL OUTLAYS FROM 46.4 PER CENT TO
46.7 PER CENT.
THE BUDGET ALSO EMBODIES SEVERE RESTRAINT ON PAYMENTS TO THE
STATES. THESE WILL DECLINE BY 1.6 PER CENT IN REAL TERMS.
IT IS MYi HOPE THAT, IN FRAMING THEIR BUDGETS, THE STATE
GOVERNMENTS, INCLUDING YOUR OWN, WILL EXERCISE THE SAME
DEGREE OF RESTRAINT ON SPENDING AND RESIST THE TEMPTATION TO
FINANCE HIGHER SPENDING THROUGH SHARPLY HIGHER TAXES AND
CHARGES.
TAX REFORM REMAINS CENTRAL. TO THIS GOVERNMENT'S AGENDA.
PERSONAL TAX CUTS WILL BE DELIVERED ON 1 DECEMBER, WITH A
FINAL TRANCHE ON 1 JULY 1987. OUR COMMITMENT TO THIS SECOND
TRAHiCHE IS TO BE REFLECTED IN LEGISLATION, TO BE INTRODUCED
FOR PASSAGE THIS SESSION.
IT IS IMPORTANT THAT THE FULL SIGNIFICANCE OF THE TAX
PACKAGE BE APPRECIATED. IT CERTAINLY IS A MAJOR STEP
TOWARDS AN EQUITABLE TAX SYSTEM. BUT, EQUALLY IMPORTANTLY,
IT ALSO INCORPORATES SIGNIFICANT REDUCTIONS IN THE CRIPPLING
MARGIN~ AL TAX RATES WHICH MR HOWARD BEQUEATHED US.
WE WILL BY JULY OF NEXT YEAR HAVE BROUGHT THE 60 CENT RATE
DOWN TO 49 CENTS AND THE 46 CENT RATE DOWN TO 40. THE COST
OF THESE CONCESSIONS IS $ 1.4 BILLION THIS YEAR AND
BILLION IN 1987-88 BENEFITS WHICH DWARF OTHER REVENUE
MEASURES. EVEN AFTER ALLOWING FOR THE HIGHER MEDICARE LEVY,
ORDINARY WAGE EARNERS WILL RECEIVE A TAX CUT FROM 1 DECEMBER
OF ABOUT $ 6 PER WEEK.
LOOKING A LITTLE FURTHER AHEAD, THE PROPOSAL TO INTRODUCE AN
IMPUTATION SYSTEM WHICH WILL ELIM4INATE THE SO-CALLED DOUBLE
TAXATION OF DIVIDENDS SHOULD ENCOURAGE A STRONGER, HEALTHIER
INTEREST IN THE EQUITIES MARKET ENABLING THE MORE
ENTLRPRISING COMPANIES TO RAISE GREATER QUANTITIES OF RISK
CAPITAL. TAKEN AS A WHOLE, THESE MEASURES PROVIDE REAL INCENTIVE,
INCENTIVE TO INVEST, TO WORK HARDER AND TO TAKE UP THE
CHALLENGE OF MEETING THE COMPETITION AT HOME AND ABROAD.
THE BUDGET ALSO SETS OUT OUR APPROACH TO THE GROWTH IN WAGES
OVER THE COMiING YEAR.
ON OCCASIONS I HEAR CRITICISM OF OUR WAGES POLICY.
OCCI. SIONALLY SUGGESTIONS ARE MADE THAT AUSTRALIA SHOULD
ADOPT THE PRACTICES OF THE UNITED STATES AND THE UNITED
KINGDOM TO GET EVEN MORE MODERATE WAGES OUTCOMES.
THE RESULTS, UNDER CUR POLICY, COMPARE MORE THAN FAVOURABLY
WITH THESE COUNTRIES. OVER THE PAST THREE YEARS AUSTRALIA
HAS EXPERIENCED A REAL WAGE DECLINE OF 5 PER CENT. BY
CONTRAST OVER THE SAME PERIOD, THE US HAD A FALL OF JUST ONE
PER CENT AND THE UK A RISE OF 10 PER CENT.
WE HAVE SAID THAT A RESPONSE TO CURRENT ECONOMI4C CONDITIONS
REQUIRES FURTHER RESTRAINT IN WAGE GROWTH TO ENSURE THAT THE
GAINS IN COMPETITIVENESS CAUSED BY THE DEPRECIATION ARE NOT
DISSIPATED IN WAGE AND PRICE INFLATION.
A FURTHER 2 PER CEN4T DISCOUNT AT THE NEXT NATIONAL WAGE CASE
WILL SEE WAGES GROWTH IN 1986-87 OF A LITTLE OVER 6 PER CENT
ABOUT THE SAME AS IN 1985-86 AND ONLY A LITTLE HIGHER THAN
OUR TRADING PARTNERS.
SO, EVEN THOUGH OUR DOMESTIC PRICES MAY RISE IN 1986-87 AT A
FASTER RATE THAN THOSE OF OUR TRADING PARTNERS, THIS WILL
LARGELY REFLECT HIGHER IMPORT PRICES FACING CONSUMERS. OUR
RELATIVE COST STRUCTURE WILL CHANGE ONLY SLIGHTLY.
HOWEVER, OUR COMPETITIVENESS WILL BE VERY MUCH BETTER THAN
THE AVERAGE IN 1985-86. THIS IS BECAUSE OF THE FALL IN THE
EXCHANGE RATE WHICH HAS ALREADY OCCURRED.
BEYOND 1986-87 WE HAVE ALSO SAID THAT, IF REQUIRED BY
ECONOMIC CIRCUMSTANCES AT THE TIME, THE GOVERNMENT WILL
CONSIDER FURTHER ADJUSTMENTS TO WAGES AT THE FOLLOWING WAGE
CASE.
OUR DETERMINATION IS TO PRESERVE THE COMPETITIVE BENEFITS
PROVIDED BY THE DEPRECIATION.
OUR RECORD TO DATE IN THIS AREA IS THE PROOF OF THIS
DETERMINATION. LET M4E REmIND YOU THAT IN THE PAST THREE YEARS REAL UNIT
LABOUR COSTS HAVE FALLEN BY OVER 7 PER CENT. THE STEPS WE
PROPOSE WILL RESULT IN A FURTHER FALL OF 1 PER CENT IN
1986--87, PRODUCING A TOTAL OF OVER 8 PER CENT IN 4 YEARS.
THIS IS A RESULT WHICH FEW INDUSTRIAL COUNTRIES CAN BOAST IN
THEIR FNTIRE ECONOMIC HISTORY. THIS GOVERNMENT IS NOT GOING
TO SEE THAT GAIN ERODED.
I WOULD LIKE NOW TO PLACE THESE RECENT POLICIES IN THE
BROADER CONTEXT OF OUR INDUSTRY POLICY, WHICH IS ANOTHER
EXA14PLC OF OUR COMMITMENT TO LONG-TERM ECONOMIC POLICY.
IN DOING SO I DO NOT WANT TO REFER SOLELY TO MANUFACTURING
INDUSTRlY. THE SERVICES SECTOR WILL ALSO PLAY AN IMPORTANT
PART IN THE FUTURE GROWTH OF OUR ECONOMY. TOURISM IS BUT
ONE EXXIPLE, TO WHICH I SHALL RETURN SHORTLY.
FACED WITH THE ADVERSE OUTLOOK FOR AGRICULTURAL AND MINERAL
EXPORTS, WE MUST ASK WHAT ROLE IS THERE FOR OUR
MANUFAC-TURING AND SERVICES SECTORS?
ONE OF THE GREAT TRAGEDIES OF AUSTRALIAN ECONOMIC HISTORY
HAS BEEN THE DEMISE OF OUR MANUFACTURING SECTOR.
MANUFACTURING WAS TEETERING ON THE BRINK BY THE LATE 1970S.
THE PROTECTIONIST POLICIES OF A SUCCESSION OF SO-CALLED FREE
ENTERPRISE COALITION GOVERNMENTS SAW TO THAT.
MANUFACTURING WAS DEALT A HEAVY BLOW IN THE EARLY 19805,
BECAUSE OF THE NEGLIGENCE OF OUR PREDECESSORS IN OVERSEEING
A WAGES EXPLOSION, INDUSTRIAL WARFARE AND ECONOMIC
RECESSION. EVER SINCE THEN, MY GOVERNMENT HAS BEEN
IMPLEMENTING POLICIES TO REVIVE AUSTRALIAN MANUFACTURING.
THESE POLICIES ARE BASED ON SOUND BUDGETARY, 1MONETARY AND
WAGES POLICIES. BUT THEY EXTEND TO INCLUDE SPECIFIC
RESTRUCTURING PLANS FOR THE STEEL, CAR AND HEAVY ENGINEERING
INDUSTRIES, SUPPORT FOR R& D AND A RANGE OF OTHER MEASURES.
A GRAP'HIC ILLUSTRATION OF THE EFFECT OF THESE POLICIES IS
THAT INVESTMENT IN MANUFACTURING IN 1985-86 GREW By 40 PER
CENT Im 1985-86 A SUBSTANTIAL REAL INCREASE EVEN AFTER
ALLOWING FOR THE CONSIDERABLE PRICE INCREASES FOR IMPORTED
CAPITAL EQUIPMENT.
HOWEVER DEPRECIATION OF THE AUSTRALIAN DOLLAR HAS PROVIDED A
MAJOR ADDITIONAL FILIP. SINCE EARLY 1985, THE AUSTRALIAN
DOLLAR HAS DEPRECIATED AROUND 25 PER CENT AGAINST THE US
DOLLAR, 40 PER CENT AGAINST THE TRADE WEIGHTED INDEX AND A
MASSIVE 50 PER CENT AGAINST THE JAPANESE YEN.
COUPLED W'ITH THE WAGE RESTRAINT I HAVE REFERRED TO, THIS HAS
BESTOWED UPON AUSTRALIAN INDUSTRY A LEVEL OF INTERNATIONAL
COMPETLTIVENESS UNKNOWN FOR AT LEAST TWENTY YEARS.
AUSTRALIAN INDUSTRY IS NOW ON4 THE THRESHOLD OF A NEW ERA.
FOR EXAMPLE, SEVERAL COMPANIES HAVE BROKEN INTO THE
DIFFICULT JAPANESE MARKET.
OTHER CON4PANIES HAVE SUCCESSFULLY ENTERED WORLD MARKEtS FOR
MEDICAL SUPPLIES, INCLUDING HIGH TECHNOLOGY PRODUCTS.
AUSTRALIAN COMPANIES ARE ALSO SUCCEEDING INTERNATIONALLY
WITH INNOVATIVE AUTOMOBILE COMPONENTS AND NEW MANUFACTURING
PROCESSES, SUCH AS RAPID DRY PAINTING.
IN THE SERVICES SECTOR, NEW HOTEL ACCOM1MODATION AND
ENTERTAINMENT FACILITIES ATTEST TO THE GROWTH IN TOURISM.
QUEENSLA" ND, WITH ITS UNIQUE SCENERY AND RECREATION
FACILI. TIES, AND THE HOSPITALITY OF ITS PEOPLE, IS
PARTICULARLY WELL ENDOWED TO TAKE ADVANTAGE OF THE GROWTH IN
INTERN~ ATIONAL TOURISM! TO AUSTRALIA.
AUSTRALIA WILL CONTINUE TO RELY ON QUEENSLAND FOR A MAJOR
SHARE OF EXPORT EARNINGS WHETHER THE EMPHASIS IS ON RAW
MATERIALS, AS IS NOW THE CASE, OR ON INTERNATIONAL TOURISM
AND LOCAL MANUFACTURES, AS WILL INCREASINGLY BE THE CASE fN
THE FUTURE.
OUR COMPLREHENSIVE WORK ON LONG-TERM RESTRUCTURING AND THE
HARMONISATION OF INDUSTRY POLICY WITH OUR SHORT-TERM
ECONOMIC POLICIES IS PAYING DIVIDENDS. I ASK YOU TO COMPARE
THIS WITH THE PATHETIC ATTEMPTS OF THE OPPOSITION TO DEVELOP
A CREDIBLE ECONOMIC STRATEGY.
JUST A FEW DAYS AGO, THE LEADER OF THE OPPOSITION HAD THE
OPPORTUNITY TO PRESENT HIS ALTER1NATIVE VISION. IT WAS A
TRULY REMARKABLE DOCUMENT, A COLLECTOR'S ITEM IN TERMS OF
ECONOIU-1C UNREALITY AND NAIVETY.
FOR ALL OF THE RHETORIC AND CHEST BEATING ABOUT CUTTING
GOVERNMENT SPENDING, THE DOCUMENT WAS DISTINGUISHED BY THE
VIRTUAL ABSENCE OF SPECIFICS AND COSTINGS. INSTEAD WE WERE
GIVEN ONLY A GRAB BAG OF VAGUE PROMISES. THE CHALLENGE TO
COME UIP WITH DETAILS WAS BEYOND MR HOWARD. HIS HYPOCRISY IS
EXPOSED IN FAILING TO MEET THE TESTS HE W1OULD IMPOSE ON
OTHERS, AND I REFER HERE TO HIS CELEBRATED INJUNCTION TO HIS
THEN LEADER IN 1984 TO FACE UP TO THlE COSTINGS ISSUE.
AS MR HOWARD'S MEMORANDUMl TO HIS THEN LEADER SAID: " SUCH AN
APPROACH IS NOT ONLY CREDIBLE. IT IS ALSO ECONOMICALLY
HONEST". HE HAS CLEARLY FAILED TO MEET HIS OWN STANDARDS OF
ECONOMIC CREDIBILITY AND HONESTY.
LADIES AND GENTLEMEN,
I RAVE ENDEAVOURED TO SHOW THAT WE HAVE APPLIED
FUNDAMENTALLY CORRECT POLICIES FOR AUSTRALIA FROM THE START
OF OUR TERM. THIS BUDGET, CERTAINLY OUR MOST DIFFICULT, IS
PART OF A CONTINUING PROCESS OF ADDRESSING THE REAL
CHALLENGES AHEAD FOR THE ECONOMY AND THE NATION.
I HAVE DELIBERATELY DEALT ONLY BRIEFLY WITH THE ALTERNATIVE
NOW OFFERED BY AN OPPOSITION WHOSE POLICIES AND PHILOSOPHY
PREVAILED ALMOST WITHOUT INTERRUPTION FOR THREE POST-WAR
DECADES.
THE PEOPLE OF AUSTRALIA WILL, OF COURSE, MAKE THEIR OWN
JUDGEMENT. THEY WILL JUDGE THE RESPECTIVE RECORDS, COMPARE
THE PERFORMANCE, CONTRAST THE ACHIEVEMENTS, AND DETERMINE
WHOM THEY CAN TRUST.
BUT LET M4E CONCLUDE, LADIES AND GENTLEMEN, BY MAKING THIS
POINT. THE GLIB CLAIM IS SOMETIMES MADE TO THE EFFECT THAT
WE, AS A GOVERNMENT, EXPECT TO BE TAKEN ON TRUST. THE TRUTH
IS QUITE THE OPPOSITE, WE EXPECT NOTHING BEYOND THE TRUST WE
EARN BY OUR PERFORMLANCE.
BEYOND POLICIES AND ACTUAL ACHIEVEMENT, THERE IS THE MATTER
OF OUR GOVERNMENT'S APPROACH TO ITS RESPONSIBILITIES.
I DO NOT BELIEVE ANY POST-WAR AUSTRALIAN GOVERNMENT HAS HAD
A FAIRER CLAIM TO PLAIN DEALING WITH THE AUSTRALIAN
COMMUNITY. I DO NOT BELIEVE ANY GOVERNMENT HAS MADE GREATER
EFFORTS TO TAKE THE COMMUNITY INTO ITS CONFIDENCE, AND TO
EXPLAIN THE REALITIES. IT HAS BEEN A COURSE OF CONDUCT WE
HAVE FOLLOWED CONSISTENTLY SINCE MARCH 1983. IN SHORT, WE
HAVE NEVER SOUGHT JUST TO BE TAKEN ON TRUST. BUT,
EMPHATICALLY, WE RAVE SOUGHT TO EARN THAT TRUST.
THE AUSTRALIAN COMMUNITY-DEMONSTRATED BEYOND DOUBT ITS
CAPACITY TO RESPOND TO SUCH AN APPROACH IN THE COMMON EFFORT
TO ACHIEVE ECONOMIC RECOVERY AFTER MARCH 1983. IT WAS A
MAGNIFICENT EFFORT AND A MAGNIFICENT ACHIEVEMENT.
I AM CONFIDENT THAT THE 1986-87 BUDGET PROVIDES THE BASIS
FOR A SIN~ ILAR RESPONSE AND THE SAME KIND OF COMMON EFFORT,
FROM A GOVERNM4ENT PROVIDING FIRM LEADERSHIP, AND A COMMUNITY
FULLY AWARE OF THE GRAVITY OF THE PROBLEMS, BUT SHARING A
COMMON DETERMINATION TO OVERCOME THEM.