TRANSCRIPT OF NEWS CONFERENCE, ST MARYS MEMORIAL HALL,
ST MARYS, SYIDNEY-30 NOVEMBER 1990
E 0 E PROOF ONLY
JOURNALIST: Could I just ask you for your reaction to the
United Nations resolution authorising the use of force post
January the
PM: Well I -think it's important that the Security Council
has shown such a great sense of purpose the vote is 12/ 2
with only Cuba and Yemen going against them and China
abstaining. So that should be now a very, very strong
signal to Saddam Hussein that the world is not going to
tolerate his forceful annexation of Kuwait and that, I hope,
will be the great outcome of the Council resolution. I
don't see it in terms of saying well here is the signal for
war. I see iLt as a signal, a strong determined signal to
the leadershiLp of Iraq saying what you've done is not
acceptable. The world is not going to tolerate it. What we
want you to do is to withdraw. Only in that sense to
understand that if you will not withdraw, if you will not
meet the reaSonable demands of the rest of the world then
take notice that the world may in those circumstances
reluctantly be required to use force to ensure that the wish
of the world for peaceful and normal processes to be
followed will be, in fact, followed.
JOURNALIST: inaudible
PM: Just lei: me finish. So what I want to emphasise
therefore is that how I see this, how the Australian
Government sees this is an important signal that an
unmistakeablE! signal, we hope, that perhaps up until now
Saddam Hussein has believed that the world is not serious in
its condemnation of what he has done in declaring that
unacceptability. I hope that now he will see it and that
the interests of the people of Iraq, in the interests of the
people of reg~ ion, and the interests of people of the world,
require and demand his total withdrawal and the release of
all hostages. If that happens then of course if Iraq
believes it has any cause for arguments with Kuwait in
regard to any matters then let that be done peacefully.
There are means available within the international community
for that to be done.
JOURNALIST: Mr Hawke, to the Gulf?
PM: Well I've indicated that I'll be making a statement to
the Parliamen~ t on Tuesday and that will be a considered
statement which will take into account the implications of
this Security Council Resolution.
JOURNALIST: Have you spoken to Mr Bush about this latest
resolution, Mr Hawke?
PM: No.
JOURNALIST: Prime Minister, Saddam Hussein has ignored
every previous signal that's been sent by the world
community. What makes you think that he will take any
notice of this time?
PM: Well thi~ s is different in kind. The previous
resolutions of the Security Council have been ones that have
indicated tha~ t sanctions will be imposed, they have been
imposed and there is the assumption before that Article 51
of the United Nations Charter of itself would be enough to
authorise action and that is the sustainable legal view.
But now what we have is a very specific decision by the
United Nations Security Council, the supreme body of the
United Nations, making a very, very clear and determined
statement that if by a particular period he doesn't withdraw
then the parties are specifically authorised to use force.
Now that is a. much stronger, much more specific resolution
than has ever been passed before. As I say I do hope very
sincerely that he will understand now that here is a
statement of the world's intention and that his own
interests and the interests of his own people are best
served by complying with the decision.
JOURNALIST: Is it possible that Australian troops will now
be requested to go to the Gulf?
PM: I don't anticipate that that request would be made.
JOURNALIST: Do you anticipate any increase in the size of
Australia's.. PM: Look I'll be making a statement to the Parliament on
Tuesday, a considered statement. I'll have the opportunity
JOURNALIST: inaudible
PM: Well just a minute. Then I'll have the opportunity of
having a discussion with my Party and my Cabinet about this
and that's when the statement will be made and I'm not
pre-empting it.
JOURNALIST: Is that one of the things under consideration?
PM: I'm not pre-empting the statement.
JOURNALIST: inaudible.
PM: I beg your pardon.
JOURNALIST: WJhat recycling schemes do you have up and
running in The Lodge?
PM: They have quite significant ones there I understand.
I'm informed of them and I'm sure they are carried out. I
mean, I don't, on a personal day to day sense, go and empty
the bins myself and carry it through.
JOURNALIST: Prime Minister, turning, if we can, to the
recession. It's the people who live around here and similar
places all over Australia who are suffering as a result.
What do you have to say to them to make them more optimistic
than they are?
PM: Well firstly, I want to say these things. Firstly, I
haven't denied that in terms of the impact on people's lives
that they've been in a recessionary situation. We just want
to make perfectly clear that all that we have been saying in
terms of tech~ nically acknowledging the recession is that
it's two successive quarters of negative growth which
technically will meet the definition of a recession. But
that hasn't been the important thing as far as I'm concerned
because I've understood that people have been suffering.
But what I want to be understood is this; that we could not
as a Government allow to go on what was happening 18 months
ago where a very simple statistic, you had expenditure going
at 10h per cent per annum and production at five per cent.
You can't as a community, as a society and as an economy
allow that to go on and so we had to slow the economy down
so that we have got a position where we can, out of our own
production, satisfy our own needs and also provide enough
for export. So we had to slow the economy down. We've done
that. In the process, of course, there's been some pain.
The next thing that has to be understood is this; that if we
hadn't taken that decision as a Government to slow the
economy down, then the world would've imposed upon us a much
harsher resolution of the economic problems facing this
country. So what we've had to do is to slow activity down.
That's meant some hurt for businesses and for individuals.
But we now have a situation where in the judgement of the
Government we will see in next year, 1991, economic
recovery, but: on a much firmer basis. Remember this, that
what we have now cemented into the Australian economy is
declining inflation, we've significantly lowered interest
rates and we have a situation also where wages are under
control so that as we come out of the recession, in the next
year, then we will have much more sustainable growth. We
are not going, to have inflation going crazy, we're not
having wages crazy. We'll have a more competitive economy.
We're going to, as a total Australian community, understand
that we've got to be producing more and the increase in our
production has got to be greater than the increase in our
expenditure so that we can live within our means and build
up our exports so that we'll be internationally competitive.
We're well on the way to doing that.
JOURNALIST: that blame for the recession.
PM: It's not a question of blame. We accept the
responsibility of Government for running the economy. We
made the decisions, we made the decisions of a tight fiscal
policy, tight monetary policy which meant a slowing down.
We were, it was the Government that was responsible. We had
to bring about that position where the relationship between
our production and our expenditure was acceptable. Of
course it was Government policy.
JOURNALIST: Do you think those words are any comfort to the
people who live out here because this is a particularly bad
hit area? They're the ones who
PM: Let me say this. You've been following me this
morning, I think. You've been around me, you've seen I
haven't been in an iron lung. I've been amongst the people
on the street, you saw the reception I got, didn't you? You
saw the reception I got, wherever I've been. I don't think
you'd call it a hostile reception, would you?
JOURNALIST: No.
PM: No. I don't feel complacent about that. I mean, I
know that people have been hurt but I also think that the
Australian people are not giving the Government great ticks
of approval at the moment. Nevertheless I think they do
understand the very I mean you don't have to be a
professional economist to know that where we had the economy
increasing its expenditure by 10h per cent and only
increasing its production by 5 per cent, that was going to
create an Australia which was totally unstainable in which
the world would've descended on like a pack of bricks. So
we ourselves had to slow activity down. Now that means that
when we come out of it in 1991 we're going to do it from a
much stronger-basis. As you know in respect of those who
are the least protected in the community, this Government
has revolutionised social welfare provisions in the
community, both in terms of pensions, unemployment benefits,
in terms of training programs for the unemployed, to open up
opportunities for them. This Government has done more.
It's recognised within this country by all the welfare
organisations that we've done more to make sure that there's
0 not just a safety net there for people who are hurt. But
much more important, as well as the safety net, is the range
of training and retraining programs which will mean that the
least advantaged are going to be put in a position where, as
the economy recovers they'll be able to be part of that
recovery. JOURNALIST: On that score, with unemployment rocketing up,
as Graham Richardson put it yesterday, will you rethink the
budget proposal to provide a four week delay in the
provision of unemployment benefits for people with assets of
over $ 5,000, as requested by ACOSS?
PM: Well the! Ministers responsible are always in a position
where if they want to bring to Cabinet a particular proposal
for a review of any particular situation in the light of the
way the economy and the society is developing, they are in a
position to do that. Of course, if such a proposal is
brought forward it would be considered by the Cabinet. But
at this stage! I'm not saying that's what will happen. It's
a matter for decision by the Ministers as to whether, in
their judgemetnt, any particular decision that's been made in
the past in different circumstances, needs review. If they
make that judgement then the Cabinet will consider it.
JOURNALIST: Do we have the manufacturing capacity, Mr
Hawke, to get ourselves out of this, to pay our own way?
PM: Well we're improving that capacity. If you look at the
situation over the last 12 months the figures are
interesting in regard to exports. We had a rise of 8.1 per
cent in exports over the last year to September. We are
gradually creating a more competitive manufacturing sector.
I mean, one of the things that I find most exciting as I go
around the country is to go to enterprises which are in fact
competing in the most, you know, toughly competitive markets
in the world.. We are doing that. That's not something
that's going to happen overnight where the whole of
manufacturing industry is so competitive. It is happening
and it's not happening by happenstance or by accident. It's
happening because we have now, under the policies of this
Government, seen a massive re-equipment and re-investment in
Australian manufacturing industries. Secondly, we are
seeing massive changes in work practices in the
manufacturing establishments of this country. That's under
the aegis of the Accord with the whole restructuring program
that's going on. Now we need new attitudes of management,
we need new attitudes of the workforce, those are gradually
being seen. There is a reflection in the increased level of
exports that we are becoming more competitive but none of us
governments, business or trade unions can rest on our
laurels. We've just got to continue to create an Australia
where our manufacturing sectors in areas where we can be
competitive. We'll never be able to have the mass
manufacturing of motor cars like the United States or Japan
but we can go in, there are a great number of niche areas
where the highly trained and skilled and flexible Australian
workforce can compete. Let me give you examples of it so
you can understand what I'm saying. We have an enterprise
in Adelaide, for instance, which is manufacturing lenses.
That's gone into the tough competitive United States market
competing against about 11 or 12 other countries and we've
got over half* the market. Now that's something that an
enterprise in Adelaide has set down, their own research
work, their oiwn management and co-operative trade union
movement operating there, is producing a competitive
product. We can do it. You look at steel. When we came to
office in 198.3 they were going to close the steel industry
down. That's what they were going to do. But now as a
result of co-operation from my Government with the steel
industry plan., new attitudes of management, and new
attitudes of the trade union. I mean, it's an eye-opener.
Go into BHP now and see the attitude of management and
workers. Instead of a closed down steel industry that I was
going to inherit we've now got a steel industry which is
exporting massively around the world. So we can do it.
JOURNALIST: are still high though
PM: I beg your pardon.
6.
JOURNALIST: Imports are still high and there's talk of
layoffs in the manufacturing industry. Has the pain been
worth it? We're now in a recession.
PM: Well pain when you ask a question is pain worth it,
at the moment when pain is being suffered by the person
suffering it they are going to say well no I don't like it,
it hasn't been worth it. But if you look at it overall and
you ask yourself the question; are we going to come out in
1991 with an economy with lowered levels of inflation, lower
interest rates, a more competitive structure, and the answer
to those questions is; yes we're going to come out with
those things. Then it will mean that Australia will be more
efficient and more competitive and that more opportunities
will be opening up. Just remember this when you're talking
about employment, remember the statistics, now you're
looking at the fact now that there's a growth in
unemployment, an increase in the unemployment benefit
recipient. rrhe fact is that under my Government, for the
whole of it's period, we've had employment growth five times
faster, remember that, five times faster than when the
conservatives were in there in the previous seven years.
We've also had employment growth twice as fast as the rest
of the world. Now that's happened, not by accident, but
it's happened~ because we've had a wages policy which has
contained wages, the trade union movement has accepted
improvements in the social wage rather than increases in
money wages and that's made us more competitive. Those
things could not have happened, we couldn't have had 1.6
million new jobs, it's what we've created, with 90 per cent
of them in the private sector, unless you'd had the relevant
government policies. Now the unfortunate thing, of course,
is that in that period which they talking about, up to 18
months ago, we were going ahead that strongly that our
demand, the demand of the community was exceeding our
capacity to produce and we therefore had to slow it down.
The employment record of this Government is second to none
in the world.
JOURNALIST: Would you enjoy the prospect, just changing
focus again, enjoy the prospect of going to visit the
sailors in the Gulf?
PM: Well, ofE course, that would depend, the possibility of
that would depend upon the circumstances. I simply you
will have seen some reference in the media that we had some
contemplation of that but with this deadline now of the
of January that creates a new ballpark. I don't really want
to say anything more about the Gulf issue and the
Government's reaction until I make the statement on Tuesday
in the House.
JOURNALIST: that you'll go.
PM: Look let me leave that till Tuesday, will you? I mean,
it was talked about-in a different situation the possibility
of seeing them because we were going to be in Europe about
that time and obviously if the circumstances were convenient
then, obviously, I'd like to see our people there, our
fellows on the ship. I'd certainly like to see them if that
7.
were possiblE! but we've got a new sort of situation which
must be considered now.
JOURNALIST: Will you be reviewing with Cabinet, before your
statement next Tuesday, the level of our forces in the area?
PM: We'll bEl considering the whole issue of the situation
in the Gulf i~ n the light of the Security Council Resolution.
I'm not goincf to pre-empt anything that will be in that
statement by any off-hand comments now. These are matters
of very, very grave importance for this country and we are
not going to be flippant or ill-considered in our treatment
of them. ThE! people will expect from me a considered
statement and they will get it from me in the Parliament
next Tuesday.
JOURNALIST: Do you think high interest rates might impact
on Labor voting in areas like Roger Price's and Ross Free's?
PM: I expect: that the people in areas like this will, when
the election comes, they'll make the judgement as to whether
their best interests are served by the Hawke Labor
Government or an Opposition. They will take into account
what has happened in regard to their employment
opportunities. They will say; well is it an accident that
under Hawke employment's increased five times faster than it
did under thE! Tories. They'll ask themselves too the
question about the educational opportunity for their kids
they'll say; well, when Hawkie came to government only one
in three of the kids stayed on in school because the Tories
haven't got any interest in equality of educational
opportunities;. They'll say, now, after 7h years of Hawke
Labor Government it's not one in three of the kids it's two
in three and that's because the Hawke Labor Government has
put the money into the pockets of the lower and lower to
middle income! families so that they can keep their kids in
school. They'll also remember the chaos in the medical and
health sphere-. Before I came to government the threat of
illness or hospitalisation was an absolute disaster for the
people of this area, they simply didn't have the cover. But
now every single Australian is covered through Medicare. No
Australian has now to worry about the threat of illness or
hospitalisati~ on. These things education, health, the
creation of -obs, the elimination of pensions for
millionaires so that people who really need help. They'll
remember that:. They'll remember the fact that when we came
to office we had a taxation system which was the most unfair
tax system in the world, where the wealthy didn't have to
pay tax, it was a matter of choice whether they paid tax.
We make them pay tax now so that we've been able to reduce
the tax burden for the mass of people. These are the things
that they'll remember and these are the reasons why when the
election come s we'll be returned again.
ends