EMBARGOA.-. 2.15pm
FOR MEDIA MONDAY, 10 MAY 1982
1982 AUSTRALIAN LTBERAL STUDENTS'
FEDERATION CONFERENCE
It is a great pleasure to be with you to open the 1982 annual
conference of the ALSF. You have a broad agenda, ranging,
as I understand, from airfares to education policy, from
student unionism to foreign policy and defence issues and I
am sure you will have a productive conference,.
It is well known that the ALSF accocmodates : a variety of
views within its membership. That is the essence of Liberalism,
just as it is of. the essence of the. inizersity ideal. But
the ALSF also has another great strength, its commitment to
standing up for what it believes in and its determination to
work eff6ctively and persistently to achieve its priorities.
One of the great causes for which the ALSF has fought and for
which it continues-to fight is voluntary student unionism.
You have fought for the right of students to choose freely
whether or not they wish to belong to a union. Whether or
not they wish to pay student union fees without fearing that
their student status will be threatened.
In this campaign, especially in relation to eliminating the
diversion of compulsory fees for socio-political activities
you have the full support of the Federal Government.
The Government has implemented a nuiber of measures designed
to guarantee voluntary student unionism in the Australian
Capital Territory and I hope the time will come when your
.: continuing campaign will be successful throughout Australia.
Voluntary student unionism is. bbviously a vital part of freedom A
in education, so is that freedom of expression which the
ALSF has championed on tertiary campuses throughout Australia.
Freedom in the widest sense is the cornerstone of the ALSF.
Indeed, it is the overriding priority and objective which
binds together all Liberals. Freedom is the great ideal
which positions us on the political spectrum. It is the
basis of our rejection of the conformity and oppressive
levelling of socialism and the reason for our commitment
to a society which encourages individuals to pursue their own
goals and -aspirations to the fullest extent of their ability. / 2
-2-
We also need to remember that influences which threaten
prosperity are in the end threats to freedom itself.
I know the ALSF does not take freedom for granted, that
you. realise it must be worked for and defended. But too
many people do take freedom easily, they accept it, they
take advantage of its benefits, and the prosperity which
it has created in Australia without realising that it
creates responsibilities, and that it cannot exist without
being defended.
As Liberals, we obviously have freedom as our central ideal.
But we should remember that freedom also provides a basis
for practical policies, and for our analysis of what the real
issues are.
I want to talk today about the real issues for Australia as
we look down the months and the years ahead. For in spite
of our comparative prosperity, in spite of the comparative
stability andsecurity which we enjoy in Australia, there are
real and fundamental threats abroad in the world to the values
and the way of life which we enjoy and which we believe in.
In concrete texis, those threats are essentially strategic and
economic. To cope with them, Western societies need resolve
and imagination to build up effective responses and practical
policies. I want to talk about the strategic and then the economic
problems which the world is facing although the two are very
much intertwined. I also want to look at what we have done
and need to do in Australia and to emphasise the contribution
we should seek to make in the: international environment.
it would be disastrous for Australians to forget or overlook
that while we are an independent country we are affected by
what happens inother countries, inthe world economy, and in the
V strategic balance.
At the present time, the world strategic and political situation
gives rise to many causes for concern. The overriding strategic
reality is that Soviet military power is greater than it has
ever been, both in a comparative and an absolute sense. The
Soviet stance continues to be essentially provocative and
the reality of Roviet policy is evident in the occupation of
Afghanistan tehind the forces for repression in Poland,
through Sovlet backing for the Vietnamese occupation of Kampuchea,
and directly and indirectly in central . Anerica, in Africa and
in parts of the Middle East.
Can anyone deny that a firm response to Soviet actions is now
a most pressing priority? Can anybody now deny the weight
of the Australian Government's consistent argument since wecame
to power in the Mid 1970' s that the advantages of detente
seemed to flow one way towards the Soviet Union? / 3
There is now great. anid widespread concern among Western
governments about the situation and growing concern about
the state of the Western Alliance.
President Reagin's sustained determination to revive
Western -power has given heart twb. a11 those people who have
been aware of what was happening, but obvioubly the United
States cannot carry the whole burden.
indeed, it is not just a matter for the Unitzed States and
Burope, the whole world has vital interests at stake,
Australiats interests are obviously involved in the wh~ le
question of world peace and isectiity and I want to ziake a
commxent here on the priority which the Government has
consistently giLven to defence expenditure.
There are alwaYs different views about which particular
exp~ enditures should come first in the defence area, always
arguments about; which priorities axe the greatest. We have
seen some of these argum~ ents in recent times in relation to
the purchase o: C a new aircraft carrier and bringing forward
the new Orion aircraft.
But in the moids; t of those arguments, we must not lose sight
of the fact that the Government hhbs #* ven defence spending
the 1) it priority it needs. We emphasised defence when
others were downgr~ lding it. We are continuing to increase
defence expenditure, it is up Aliost 20% this year and
Austr~ tlia is experiencing the benefits.
Coming back to the international stxategic situation, I
believe that what is needed now am~ ong Western nations i o an
accurate perceltion of what the SovIet Union's actions are
__ all about, because that perception-must provide the basis
V of an adequate overall Western response to the situation that
has now developed.
There are moany questions we need to ask ourselves in the West,
in the early past-war yeaxai there-would have been faiKly
general understanding and agreement on the nature of the
Soviet Union's intentions. That agreement ledto the fonrvation
of NATO and the continuation of the Western Alliance,
is there still the same understanding of the nature and
purposes of the Soviet Union? Ar& the differences that
sometimes appear in the Alliance caused by dfferent perceptions
now of the Soviet threat? Is there the capacity to achieve
agreement about the way we should conduct our relations with
the Soviet Union)' Is the West making itself a hostage to
66rtune by building dependence on Soviet markets and on Soviet
strategic supplies?
And these questions come on top of the economic diffdculties
in the Western industrialised de oracies which threaten the
cohesion and purpose of Western count-ties. / 4
-4-
In Europe next month, there will be two vital summits which
provide an opportunity to address these questions and
difficulties.
The Heads of Government of NATO countries will be meeting in
Bonn to discuss the issues facing the Western Alliance. This
meeting is potentially of enormous significance. It will
be searching for a strategy for the 1980' s. and it is certainly
the hope of the Australian government that this meeting will
lead to a renewal and strengthening of the Alliance.
The Bonn summit meeting will follow the Versailles economic
summit, at which the Heads-of Government of the United Kingdom,
France, West Germany, Italy, Japan, Canada and the United
States together with the Presidents of the Commission and the
Council-of the European Ocrmunities will discuss the economic priblems
faced by the West and policies to overcome them, energy
problems faced bythe West beyond the present downturn in
world prices, the dialogue between developed and developing
countries and problems and strategies in economic relations
between the Western countries and the Soviet bloc.
World economic conditions and their implications for the
stability of the Western democracies are seiious indeed.
It is estimated that last calendar year the value of world
exports fell for the first time in over twenty years. The
average rate growth of GDP in theindustrialised countries
of the West was only a little over 1% and real GDP actually
fell in the final quarter of the year in the United States,
West Germany and even Japan.
Predictions of recovery from recession are repeatedly made,
and repeatedly fail to materialise. Already this year, the
United States economy which produces over one third of the
output of the member countries of the OECD has experienced
Sa further fall in its real GDP in the" first quarter and its
uneployent rate has reached almost 9 of its labour force
which means that over 10 million Americans are out of work.
This pattern of recession and rising unemployment is being
repeated throughout the Western industrialised countries and
it is predicted that total unemployment in the OECD countries
will reach 30 million during this year.
It is true that inflation rates have been falling rapidly in
Europe and North America; that some workers have accepted cuts i
in real wages to help protect their . employment prospects and
oil prices have been declining.
But while these trends provide reason for some optimism
about future prospects for recovery, the persistence of
real interest rates at historically high levels continues to
discourage the investment which is so essential to building
a sustained economic recovery.
The costs of these conditions in terms of unfulfilled expectations,
in terms of unemployment and associated suffering are high
indeed, and the potential for even higher costs as confidence
in the ability of governments to cope is undermined cannot be
ignored. In some cases the reactions of governments has been to try
to defend themselves and their people not by facing up to
the need for firm policy settings, not by accepting and
facilitating the structural adjustment that is needed to
accommodate changed economic conditions, but rather by seeking
to increase and extend protectionism.
For example, the European Community has intensified its
already massive protection of its agricultural producers
and has introduced a system of subsidies for exports of its
agricultural produce to third markets. There is an increasing,
and intensely disturbing trend towards bilateral trade
agreements cutting across the forces of multilateral competition
in trade that have been the basis of world growth and world
prosperity for most of the post-war period.
It is true, of course, as our recent experience -in Australia
has made clear that economic interdependence can impose costs
on countries when world economic conditions are difficult.
But if the experience of the years of depression which preceded
World War II has taught us anything, it is surely that the
costs of isolationism are far more severe.
Throughout the 1950' s and the 1960' s, the new economic order
established in the aftermath of World War II, the liberal
system of trade and payments, sustained unprecedented-growth
of trade and prosperity.
Following the experiences-of the 1970' s, the world today is
a very different place and it is vital to the interests of us
all that the Heads of Government meeting at the Versailles
Economic Summit face up to that fact. and seek a clearer
understanding of why it is so different, and what must be done
to put the Western countries back on a path that will generate
renewed growth and renewed prosperity.
As with the NATO meeting:-at Bonn, Australia is not directly
represented at the Versailles meeting, but our interests are
very must involved.
Our economy, our workforce, is small by comparison to those
of the major countries involved in the Versailles Summit,
We currently produce a little under 2% of total GDP in the
OECD dountries taken together. There areamillions more people
unemployed in the United States today than there are members
of the total labour force in Australia. and we rely on trade
with the major economies to keep us growing, to underpin the
prosperity of all Australians.
Nonetheless, as we have shown in recent years with the right
policies we can succeed against world trends. Indeed in 1981
our growth rate of 5% was about 4 times the estimated average
growth rate for the OECD as a whole.
I-I Ill I I
. The costs of these conditions in terms of unflfilled expectations,
in terms of unemployment and associated suffering are hilh
indeed, and the potential for even higher costs as confidence
in the ability of governments to cope is undermined cannot be
ignored. In some cases the reactions of governments has been to try
to defend themselves and their people not by facing up to
the need for firm policy settings, not by accepting and*
facilitating the structural adjustment that is needed to
accommodate changed economic conditions, but rather by seeking
to increase and extend protectionism.
For example, the European Community has intensified its
already massive protection of its agricultural producers
and has introduced a system of subsidies for exports of its
agricultural produce to third markets. There is an increasing,
and intensely disturbing trend towards bilateral trade
agreements cutting across the forces of multilateral competition
in trade that have been the basis of world growth and world
prosperity for most of the post-war period.
It is true, of course, as our recent experience in Australia
has made clear that economic interdependence can impost costs
on countries when world economic conditions are difficult...
But if the experience of the years of depression which preceded
World War II has taught us anything, it is surely that the
costs of isolationism are far more severe.
Throughout the 1950' s and the 1960' s9, the; new economic order
established in the aftermath of World War II, the liberal
system of trade and payments, sustained unprecedented--growth
of trade and prosperity.
~' Following the experiences. Of the 1970' s, the world today is
a very different place and it is vital to the interests 6f us
all that the Heads of Government meeting at the Versailles
Economic Summit face up to that fact-and seek a clearer
understanding of why it is so different, and what must be done
to put the Western countries back on a path that will generate
renewed growth and renewed prosperity.
As with the NATO meeting:. at Bonn, Australia is not directly
represented at the Versailles meeting, but our interests are
very must involved.
Our economy, our wDrkforce, is small by comparison to those
of the major countries involved in the Versailles Summit.
We currently produce a little under 2% of total GDP in the
OECD Countries taken together. There arecillion8 more people
unemployed in the United States today than there are members
of the total labour force in Australia. and we rely on trade
with the major economies to keep us growing, to underpin the
prosperity of all Australians.
Nonetheless, as we have shown in recent years with the right
policies we can succeed against world trends. Indeed in 1981
our growth rate of 5% was about 4 times the estimated average
growth Xate for the OECD as a whole.
-6-
We have shown that our interdependence with the rest: of the
world has not prevented us from taking independent action to
promote the living standards of Australians, and keep
building Australia up.
Let me add thai: we have succeeded in this endeavour without
pursuing the path of increasing protectionism. Indeed in
the process we have taken decisions to gradually lower
protection throughout Australian induStry.
The importance of keeping on building Australia up by
continuing to bear down on inflation, by maintaining a
responsible approach to our budgets, by continuing appropriately
firm monetary policies, cannot be overstated.
For it is growth that is the primary source of increased
e living standards for Australia's families. It is growth that
provides the resources to enable us to effectively care for
the needy in our society, and to help other less fortunate
peoples of the world to escape from the vicious circle: of
poverty so many, 6f them face and it is growth that gives us
the capacity to effectively defend-ourselves, and play a
wider role in promoting peace and freedom in the international
community. As a result of the policies that the Commonwealth Government
has pursued since the end of 1975, not only do we now have
one of the strongest economies among the Western industrialised
nations today, but we also are one of the few net exporters
of energy in a world which, following the-rise of OPEC, badly
needs diversified sources and forms of energy.
The importance of our energy resources not only provides an
incentive for other countries to be aware of the impact of
their policies on us but it also serves as one example of the
fact that Australia does have a real contribution to make in
relation to issues and problems of world concern.
There are obviouslimnits to what a nation-of 15 million can do,
but we have a role and a responsiblity, as a concerned and
outward-looking nation, to do what we can.
I believe that a country like ours sometimes has the capacity
to highlight the concerns and interests of smaller and less
powerful nations and thus contribute to a more balanced
perspective overall.
We have also demonstrated our capacity to take initiatives
designed to encourage or enable others to act in pursuit of
important objectives. Our decision on the Sinai, for example,
was a catalyst in encouraging ' other countries to join the
peacekeeping force, and our CHOGM initiative to set up a
study group to -examine obstacles to negotiations in the
North-South dialogue which arise from the negotiating process
itself is a further important example. / 7
-7-
Not only does Australia have something to contribute, we also
have responsibilities to secure Austral~ ia's own well-being
and interests.
in the conjunction of strategic and economic circumstances
which I have been discussing in this speech, I believe it
is vitally important for Australians to be aware of what is
at issue, and how the events may affect us.
It is also important for us to realise -that while Australia
will not be attending either of the June summits, our interests
are involved.
Against that background, the discussions that I shall be
having next week with President Reagan, with Pierre Trudeau
and with Prime Kinister Suzuki are obviously timely, and they
will provide a valuable opportunity to bring forward ourI
concerns and perspectives.
We live in a troubled and uncertain world. If ever anyone
needed an example of that, look at the F'alklands.
As Liberals, as a Party and a federation determined to defend
the values of freedom and democracy, we have tremernjous
responsibilities, and tremendously challenging tasks.
We need the courage to stand up for what we know to be right.
We need the will to match our ideals with effective action
and we need the dedication to stick with far-sighted policies.
Provided we do that, there is much that we can achieve, and
we can be confident of our ability to surmount the problems
and build the kind of future that we want.