PRIME MINISTER
TRANSCRIPT OF NEWS CONFERENCE, Y400NEE VALLEY RACECOURSE,
MELBOURNE, 21 NOVEMBER 1990
E 0 E PROOF ONLY
JOURNALIST: Prime Minister, do you think there's a danger
with the wage/ tax trade off that the $ 500M economy that
it could refuel demand?
PM: No, I don't think we've got any problem there. What
you've got to realise is that if the wage increase of the
0.7% had been granted that would've put more money in the
pockets of wage anid salary earners but it would've fed into
our cost an inflation structure and on the balance of our
considerations it was much better from everyone's point of
view employees, employers and the community generally
that we should take this opportunity of further reducing the
infl~ ation rate. Now I ask you to remember just what's
happened in this period since the election. We've had
significant successive reductions in interest rates,
significant reductions in the inflation rate and while we've
had to slow the economy down and so we've seen some
reflection in the employment area. What we are now doing is
setting the base for a solid economic recovery next year.
JOURNALIST: Mr Hawke, ACOSS says it would've preferred the
lower income people to have higher wages and lower taxes.
How do you react to that?
PM: Well I talked with the ACOSS people yesterday and
pointed out to them that in fact the concentration of the
benefit was in the range from $ 12,000 per annum up to about
$ 30,000. in other words it was in the area of the lower to
middle incomets who were getting relatively the greatest
benefit out of the tax cuts.
JOURNALIST: union rank and file endorsement like?
PM: It's been pretty good in there to me.
JOURNALIST: 1Well the BWIU, Sir, is already saying it will
oppose the deal?
PM: Well you see we don't deal with a particular official
or a particular union. We deal with the Australian Council
of Trade Unions which represents the whole trade union
movement and they have not only endorsed the deal but they
think it's an appropriate deal, which of course it is.
JOURNALIST: But the ACTU executive has yet to endorse the
deal. PM: Would you like to have a bet? The Spring Carnival's
nearly over., Would you like a bet?
JOURNALIST: No, I wouldn't care to bet.
PM; No, I didn't think you would.
JOURNALIST: Mr Hawke, going back to the ACOSS position,
surely the -timing of the tax cuts is wrong. Shouldn't it
have been better if the benefit came before Christmas when
the PM: They know that the amount of money is there, it's
scheduled, the legislation is in place for it to be in
January and the balance of benefit obviously is in it being
by way of tax cut rather than a rather small wage increase
and that can only be effected in January.
JOURNALIST: inflation beei, is there any chance that
the Accord Mark VII similar wage/ tax deal in an attempt
to push dampen inflation in..
PM: It's too early to any on that one. We've shown a very
considerable degree of flexibility in the negotiations we
have with the trade union movement to try and get what for
the community overall is to be the beat outcome. Now all
options are open but no particular item is on the agenda.
JOURNALIST:. Is there a danger that workers may see that
they are being asked yet again to endure more wage
restraint? PM:. This is getting boring, if I may say so. Is there a
problem, is3 there a difficulty, what's this particular draw
back? Why don't you face up to the fact that this has been
welcomed by the trade union movement generally, it's been
9 welcomed by employers, it's been welcomed by responsible
economic spokesmen. Why? Because it is going to give
Australians a further opportunity to cement into the system
this downward inflationary movement so that as compared with
the rest of the world where inflation is rising, in
Australia it's coming down and we're closing the gap. Why
do you always have to try and look for a draw back? Why
don't you understand that this is something which is for the
benefit of all Australians? I mean, just once, just once do
you think it mightn't be a bad idea to say, gee, some good
news? You've got a psychological hang-up have you, about
seeing some good news for all Australians?
JOURNALIST: Mr Hawke, can I just change the subject?
PM: Yes, it would be good.
JOURNALIST: Senator Haines, what do you think of her
comments saying that our hostages are being left to rot?
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PM: Well I think Australians will make their own judgement
about that. I won't use the language I'm inclined to. it
is deliberately untrue and she knows it to be untrue. What
good she thinks she does herself or anyone else in speaking
like that escapes my comprehension. Australians will judge
her. JOURNALIST: inaudible
PM: Well you'll have to ask her.
JOURNALIST: Three Australian families have now accepted
invitation to spend Christmas in Kuwait or Iraq. 19 that
making your job difficult in that area?
PM: No, I don't make judgements about the actions of
families in those circumstances. I mean let's be
understanding-and compassionate about this. Who can put
themselves I certainly don't attempt to put myself in
their minds and in their hearts. They are going through a
great trauma. They must make their own judgements.
JOURNALIST: Well what do you think about the Iraqi
Embassy's offer for Christmas accommodation?
PM: Well I mean what do you think about it? I mean here is
a regime playing with the lives and the emotions of people
whom they have seized against all international law and
international convention. I mean. it is how they are
treating these people in making them pawns in an attempt to
get some Just~ ification for their totally unjustifiable
annexation of a neighbouring country is unacceptable.
ends
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