. AUST A1A.
PRIME MINISTER
FOR PRESS 25 SEPTEMBER 1978
ADDRESS AT SYDNEY ROTARY CLUB
I am particularly pleased to have an opportunity to speak to
your club which has such a fine record of community service
in the city of Sydney.
Voluntary organisations such as Rotary play an essential role
in helping to solve the problems of individuals in need of
help. The community depends on you, just as it depends on
government. Neither of us alone can fully meet the social problems in our
society. Ours is a co-operative venture to ascertain what the
real needs in this community are, and to respond to them with
compassion, efficiency and effectiveness.
In recent years, there have been remarkable social changes in
Australia: the increase in family disruption; the number of
single parents; the significant increase in women in the workforce;
the increasing component of overseas-born members of
our population, many recently of refugee status; the increasing
number of aged people in the community; and the problems of
structural unemployment which have emerged.
The Government has responded to these changes by modifying
programmes which are no longer serving the purpose for which
they were designed, and initiating new programmes which meet
areas of real need. For example, our decision to assist sole
fathers to place them on a similar basis to supporting mothers;
our greater emphasis on the provision of day care centres for
children of working mothers; the decision reflected in the
recent Budget to boost spending for pensioner housing; and the
introduction of generous family allowances.
The particular problems suffered by many members of our ethnic
communities has received special recognition. Migrants are a
group that have contributed enormously to the economic, social
and cultural life of Australia. Migrants have to face extreme
psychological and social stresses loneliness, home sickness
and anxiety, and in many cases, the frustration caused by
language difficulties. ./ 2
2
They have to cope with a completely different environment,
different laws, different customs. But they have a strong
desire to become self-supporting independent and productive
members of Australian society-as quickly as possible, without
undue reliance on government.
The Government was concerned that services available to migrants
were fragmentary and inadequate, and not up to the task of
serving migrants' needs.
For this reason, we established last year a major inquiry into
post-arrival prograimmes and services, with Mr Frank Galbally as
Chairman. That inquiry presented its report in April and after
careful consideration, the Government endorsed it, accepting its
proposal to spend an additional $ 50 million over the next three
years, giving migrants a new deal.
The Government is setting up sixteen centres to enable newly
arrived migrants to take part in full-time English and
orientation courses: spending an additional $ 10 million over
three years to teach English to migrant children; upgrading and
increasing English classes for adult migrants; extending the
telephone interpreter services; making more funds available to
Ethnic groups and co-mmunity organisations to employ their own
welfare workers, health workers, and people skilled in assisting
their children and the aged; and we shall establish a new
Institute of Multi-Cultural Affairs to encourage the further
growth of our multi-cultural society.
It is not only government that has had to respond to the
fundamental social changes which have been occurring. As a
result of these changes, demands on voluntary agencies have
been increasing, and some agencies are having difficulty in
recruiting experienced voluntary helpers.
The Government has recognised these needs in our programmes of
financial assistance to State and Local Governments, and to
voluntary community organisations which provide facilities and
services for the aged, children and their parents, Aboriginals
and migrants.
These programmes complement the Commonwealth Income Support
Programmes by providing accommodation, counselling, education
and other services aimed at assisting those in need.
Voluntary agencies and organisatons such as Rotary have also
had to rethink their community service programmes, winding
down those that have served their purpose, and redirecting
energy and resources to new initiatives which provide effective
assistance to new areas of need.
One of the greatest social problems in Australia today is
unemployment. Particularly for the young, who want to make
a start in their careers. / 3
I am delighted to see that the members of this club have
responded by making assistance for the young unemployed in
Sydney your major project for the year.
Unemployment can cause great unhappiness and frustration,
it is cruelly wasteful of the community's resources, and in
tackling this grave problem, the Government needs the wholehearted
support of all sections of the community.
May I say that the co-operative community approach which we
seek is exemplified' in the way that your club members are
working closely with the new Commonwealth Youth Job Centre
in Martin Place, and notifying job opportunities in members'
own organisations, and any others that come to notice through
your wide range of contacts.
In view of the particular interest which you have shown in this
all-important subject, I thought I might spend a few minutes
outlining the Government's co-ordinated strategy to overcome
the unemployment problem.
Before the last election, I said unemployment would fall
from February and keep falling. This prediction was based
on forecasts available to me at that time.
Unemployment has indeed fallen so far this year, but by less
than I had hoped. Progress in reviving employment has been
slower than-expected. This has been attributed to a number of
factors in particular, the slow rate of growth in world trade.
We had looked to a greater lift in world trade and a greater
expansion in world markets this year and next than it is now
clear will in fact take place.
The expansion of world markets and the growth of world trade
will probably be insufficient either this year o' next year
to reduce the general level of unemployment in the advanced
industrial countries.
There have been significant setbacks in the fight against
inflation among the major Western nations. We know that
inflation is increasing in the United States. It has been
rising in Britain and in France, and it has levelled off at
a high point in Italy.
Two countries that stand out for their success in containing
inflation are Japan and West Germany, and now Australia is
joining their ranks.
But the high and increasing rate of inflation in very significant
parts of the developed world is certainly a major setback to,
world recovery. It means that Australia cannot look to a general
expansion of world trade to provide any real improvement in its
own trading position.
A further factor that has not-assisted the creation of new
employment opportunities has been the failure to contain wage
increases to a reasonable and realistic level.
Through the course of the last financial year, average weekly earni
acain increased by more than the Consumer Price Index.
The real increase in wages has meant that the share of wages
in relation to profits has remained higher than we expected.
Because of the slow growth in world trade, we cannot look to
a resurgence in general overseas trade and markets to lift
our economy, and thus increase employment. Since we are powerless
to affect what happens to the economies of the United
States and Europe, we must rely even more on our own efforts
to get our own economy right.
The firm line we have taken in the fight against inflation
has thus been all the more necessary. It is vital that we
get inflation below that of our major trading partners so that
our industries can become more competitive instead of less
competitive, as in the past.
A lower inflation rate in Australia will bring greater activity
to this country because our industries will be able to capture
a larger share of our own markets, and will be encouraged to
develop new export markets. A lower than average inflation
rate in Australia will also give Australian and overseas
investors the confidence to increase their investment here,
particularly in our natural resources.
By maintaining a firm fiscal and monetary policy, we can
attract a larger share of foreign investment than otherwise
would be the case. This is now becoming evident because
overseas investors as they have said in discussions with mehave
started to couple this economy with the highly efficient
German economy.
It is against this total background that our progress to date
in dealing with unemployment needs to be viewed.
on 14 September, in a significant Parliamentary speech, Tony Stree
outlined in detail the progress made to date and prospects for
increasing employment in the future. He had first discussed this
speech with me prior to the Budget, and we then determined that
it should set out very plainly all the facts on this vital
issue.
The immediate forecast made in the speech, which was consistent
with the Budget forecasts, was that it is likely that a now
peak in unemployment will be reached in January-February 1979.
As Tony Street's statement made clear, the causes of our
unemployment problem are not hard to discern.
During the time of our predecessors in office, wages outstripped
productivity, inflation increased at an alarming rate, and
demand, investment and confidence fell. He went on to say:
" As a Government we believe these problems are
fundamental to the present predicament in the
labour market".
" We have, therefore, consistently advocated maximum
restraint in wage increases and sought to improve
productivity". " We have adopted policies to reduce infaltion and
improved demand, investment and confidence".
" There is increasing acceptance that our policies
have achieved substantial improvement, particularly
when it is recalled that we inherited a deteriorating
economy and worsening world trade".
After reviewing the many difficulties and challenges
which lie ahead in improving employment prospects, he
concluded that: " the best result will be achieved
through the pursuit of ( the Government's) present
economic policies"
In taking this course, the Government is firmly acting in the
best long-term interest of this nation. For it is the only
course which will restore economic health and growth the
growth required to provide more jobs for Australians.
It is not a question of the Government not being concerned
for the unemployed, it is a question of being so concerned that
we are determined to stay with policies which we know in the
longer term will put the matter right. It is a question of
being so concerned that we are not prepared to trade Australia's
longer term future for shorter term political gains. it is
a question of being so concerned that even at the cost of
political popularity for the time being we are determined to
give. Australians the prospect of obtaining and keeping lasting
jobs jobs that they can keep.
The Government's economic policies are succeeding in reducing
inflation and laying the foundations for greater investment
and more jobs.
The annual report of the G. A. T. T. affirmed in the strongest
terms that policies of the kind this Government is pursuing
are the only policies that can be successful. The report
said: " The inescapable conclusion is that the industrial
countries can only move towards increased growth
and employment.. by reducing their inflation rate
to the levels experienced until the mid 1960' s." 1
The tragedy is that for one reason or another, in too many
advanced developed countries, inflation is moving the wron( I
way. It is high and it is increasing.
That will ' have very significant adverse effects for activity
and employment in those countries. It does not mean, however,
that we need suffer the same fate.
Convinced as we are then that our policies are the only ones
to get the Australian economy back on its feet, the question
still needs to be asked: Is the Government doing enough to
alleviate the hardship of unemployment while our other
objectives fall into place?
The Government is providing meaningful help to those who do
not have jobs and providing particular assistance to the
young unemployed. Our NEAT Scheme, the Special Youth
Employment Training Programme and a number of other programmes
are designed to achieve this end.
At the end of June 1978 six times as many people were being
trained under NEAT as at the end of December 1975, and we
have changed NEAT to give a much greater emphasis to on-the-job
training training more directly related to Industries'
needs. Our programm'fes to assist young people include the introduction
of a Special Youth Employment Training Programme. More than
60,000 young people have already been assisted by this
programme since it was introduced in October 1976, and there
are another 40,000 people in training under the Scheme at the
moment. A further 45,000 young people have been assisted under the
Community Youth Support Scheme and the Experimental Programme
for Unemployed Youth provides remedial education assistance
for -young people who have never had a fair go in their whole
lives.
We have never been for one moment complacent about these
schemes, and they have been steadily modified, expanded and
improved as we have gained experience with them..
I believe that these training programmes are better than those
in most other countries, for we have avoided the pitfall of
locking labour into unprofitable industries, a problem which
some overseas organisations are becoming very concerned about.
But the Government's foresight went beyond the establishment
of vocational training programmes. We were concerned in 1976
about the problems which Australian industry faced: the
need to become more competitive; to increase its productivity
and technological capacity; to adapt smoothly to structural
change.
Accordingly, long before the current debate on these issues
became widespread, we looked ahead and set a number of actions
in train. We established the Williams Inquiry into education
and training: we initiated an Inquiry chaired by Sir John Crawford
to recommend ways in which industry might best adapt to necessary
structural change; we established a separate Department of
Productivity; and we authorised the first review ever made of
the Commonwealth Employment Service. / 7
The Inquiry under Professor Williams was set up in October 1976.
We were concerned to make sure that our educational system was
adequately designed to meet the educational needs and preferences
of the individual, and the requirements of the labour market.
The results of that long and difficult inquiry will, I hope, be
available within weeks, and we are looking for a constructive
report which will clearly involve the States and many sections
of the community in its implementation.
At the same time as the Williams Inquiry was established, the
Government also commissioned the present Chairman of the
Australian'Broadcasting Commission, Mr Norgard, to make a
comprehensive and detailed examination of the Commonwealth
Employment Service. This was the first inquiry into the C. E. S.
since its inception.,
The Inquiry reported late last year and we have acted on the
report to upgrade the C. E. S. with the aim of making-it a
modern and efficient employment and counselling service.
Since coming to office the Government has also sought to give
every encouragement to Australian industry to increase its
competitiveness in domestic and world trade. OuLr successful
anti-inflationary strategy has been of most direct benefit,
but a number of other complementary initiatives have also been
taken.
Over a year ago, we established the Crawford Inquiry to examine
the adjustment problems which face the most highly protected
Australian industries and ascertain how we might best maintain
the long term strength, stability and viability of Australian
manufacturing industry.
Two years ago, being most conscious of the need for Australian
industry to improve its productivity and adapt effectively to
the newest technological development, the Government established
a separate Department of Productivity.
I seem to recall that the new Department was greeted at the time
with a degree of scepticism. one editorial even sought to
dismiss it as the Department of Silly Walks.
In retrospect, it is now the editorial rather than the Department
which looks distinctly silly. Ian Macphee and his officers have
been particularly successful in developing joint programmes
involving management, unions and government in finding wasy to
increase productivity particularly through new technology
in highly protected industries.
Such tripartite consultations are presently underway in the
footwear, clothing, textiles, forging, tyres, tanning and
whitegoods industries.
The adoption by industry of the latest technology can often
lead to an increase in employment. It is true that in the
narrowest sense new technology may lead to a particular
article being produced by fewer employees. But because of
the cost reduction brought about by new technology, demand is
increased both by Australian and overseas customers for the
goods concerned.
Furthermore, the general purchasing power of consumers is
increased and overall demand is strengthened. The introduction
ofthe latest techniques is the best overall strategy for
employment. Without adopting new technology the industries concerned
will falter and jobs will be lost. Moreover, by developing
and exploiting new technology, we can create entirely new
products and systems, such as Interscan and this creates
more jobs.
Fear of new technology is no more justified in 1978 than it
was justified at the beginning of the Industrial Revolution.
We have a great opportunity to play a major role in world
trade, particularly in Asia, because of our resources and
because of our skilled workforce. By producing high quality,
technologically advanced products for domestic and world
markets, the prospects for Australian manufacturing industry
will be bright.
These long term initiatives which I have mentioned, which were
begun one and two years ago, demonstrate the Government's acute
awareness of these problems of technology, structural change
in industry and employment. I am delighted that there is now
a widespread debate on these subjects.
In the coming months, the Government will be activ ely seeking
to involve the community in the challenges which these issues
provide. This consultation will not take place in forums
which would only provide a political platform without
achieving any result. Rather, they will be working groups
comprising representatives of those sections of the community
most directly involved in these vital issues.
Tony Street has called a meeting of labour Ministers as one element
of that broader-based discussion an initiative which I note
Neville Wran sought to claim as his own in his recent policy speec.
As I have indicated, tripartite discussions are already underway
in a number of industries with the assistance of the
Department of Productivity. When the reports of the William
Inquiry and Crawford Inquiry are to hand, I would also expect
widespread consultation to take place. / 9
The decision to establish a powerful committee of Cabinet,
under the chairmanship of Tony Street, to review the basis
of our industrial relations is also closely related to these
issues. During our period of less than three years in office, the
Government with Tony Street as its Minister for Employment
and Industrial Relations has achieved a remarkable
improvement in industrial relations in this country.
That does not mean to say that the Government is satisfied
with the present situation. Three of the basic aspects of
our industrial relations which Tony Street's committee will be
examining are the practical processes of consultation between
concerned parties; the creation of a public opinion aware
of the consequences of industrial disputes on unemployment;
and the legislative framework of industrial relations.
We have made progress in all three areas, but while much has
been done there is always room for improvement. It is this
Government which established a permanent National Labor
Consultative Committee in which Government, employers and
employees can sit down together to discuss important industrial
relations issues.
Through the work of Tony Street's committee, we hope to
achieve a better climate of industrial relations. Tony Street
returned this morning from a visit to Japan, accompanied by
representatives of employers and Trade Unions. The purpose
of that visit was to discuss the impact which good industrial
relations can have in further developing our mutually profitable
and beneficial trading relationship with Japan.
The impact of a reduction in industrial disputes could be very
great indeed. To take one example, if a deeper understandinq
of this issue were to lead to a reduction in industrial
disputes on the waterfront, the impact on our exports and on
the confidence of our purchasers would be substantial.
Tony Street's committee will also be examining the vital issue
of how to idevelop a much wider understanding throughout the
community and the Trade Union Movement that industrial
stoppages wherever they occur keep Australian men and
women out of work.
We have already established a legislative framework to provide
just and fair laws to protect all parties to an industrial
dispute as well as the interests of the general public.
But the committee will be examining the need for
modifications in this area. Good industrial relations cannot,
however, be produced by laws alone. But the charter of Tony Street's
Cabinet committee is a wide and important one. The committee's
task is of crucial significance because greater success in
this area would significantly boost our general economic
performance and complement the Government's economic policies.
Mr President, I have stressed today the importance of
consultation and community involvement. In all the great
social issues that face Australian society, government alone
can never provide all the solutions.
Whether it is the needs of the aged, the migrant, the
handicapped, the sole parent, or the unemployed, effective
help will only be provided through the closest co-operation
between government and voluntary organisations.
You, by your involvement in Rotary, demonstrate your public
spirit and commitment to assisting those in need.
I believe that Australia is the land of opportunity. We have
the opportunity to develop together a society which is most
conscious of its responsibilities to human rights and human
dignity. A society which promises effective help to those
in need.
By working together we can realise these opportunities.
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