E OZ PROOF ONLY
PM Hawke on Diana Warnock 6WF
27/ 1/ 89
DW; The coming State election is an important one. It's the first of
several this year and commentators are seeing it as a barometer for the
fortunes of both the ALP and the Conservative Parties federally. The
short campaign has been distinguished by the visit of numerous
political illuminaries from the east. This morning we welcome to the
studio Australia's Prime minister, Bob Hawke. Welcome to the studio.
PX; Tlweink yuu vtxzy muuh1 Diana.
DW: Well now you will have obviously heard that polls are
predicting a very close result indeed in the WA election and it is
known too that the preferences of the minor parties and independents
will be vital this time. How important is this State election to
Federal Labor's fortunes do you think?
PM: Well I don't say it is vital, but every State election has its
significance. We would obviously rather wine and I believe we will.
It will increase our confidence correspondingly if the opposition
didn't win here having set such high store on it will effect their
moral and standing. So it would be very dishonest politician to say
that it's not significant. But it is not crucial in the sense of what
happens here will determine the federal outcome.
DW: It can't be long of course until the next federal election and you
don't feel at all that the result here is likely to influence that. I
am thinking of the domino effect that some people...
PM: Oh no the next Federal election is in the order of a yea~ r away and
I repeat for the benefit of your listeners what I have said publicly
now the sort of period within which the election will come will be some
latter part of this year to May of 1990. So it is in the order of 12
months away.
DWs Prime Minister the minor parties are very much a feature of this
campaign suggesting perhaps disillusionment with the major parties.
Does that confirm that Labor has lost touch with the ordinary person as
some people have been suggesting for about a year or two now?
PM: No I don't think so. I think it is true to say though Diana that
about a year ago it couuld be uaid there was evidence of that sort of
feeling and I suppose the most dramatic illustration of that was in the
results of the NSW State election. I am very confident that; in regard
to our base of ordinary working people, and when I say ordinary working
people that's not just at the lower income level, I mean we have got a
lot of support now right up the salary scale. And I think in there
that support has come back during 1988.
DWz Prime Minister people appear to be hurting financially. H~ ow firm
a commitment can you give that low and middle income earners the people
you were talking about will get tax cuts?
PHI I can give an absolute commitment. I have done it -, QlIready
within the last f ew weeks, I take this opportunity Diana on your
programme to say to the people of Western Australia that those tax cuts
will come in July lst. They will as I have said be targeted tovards
the lower and the middle income groups. People who may I say take this
opportunity of again Baying directly to them, have paid an enormous
role in the great economic progress of this country by exercising.
restraint and the time has come where with responsible 19conomic
management we believe that we can assist them to improve their living
standards, their living standards will go up during this year as a
combination in this state of the tax cuts that we will bring in, the
lowered inflation rate which is coming through in 1989 and mixy I also
say that in regard to the wage movements the position of my Govt and my
party reflected by Mr Dowding is that people should get legitimate wage
increases as against the Conservatives who have opposed every wage
* increase in the last 6 years. So the combination of tax cuts, lowered
Winflation and wage increases, with the additional element in Western
Australia of the performance of the Dowding Govt in keeping State taxes
and charges to zero in this last year, .11 those things together in
Western Australia will mean as a combination of the Dowding and Hawke
Labor Govt's improve4 living standards.
DW; But you do admit a moment ago you said that people had had to be
restrained for some time. Do you think any anti-Labor backlash during
this campaign might be the result of delays in relief for the average
tax payer?
PM: No I don't think so, because I had to f ace up to this issue in
1987 Diana, of whether you were taking unacceptable political risks in
being absolutely frank with the Australian electorate. I was told by a
lot of people in the Labor Party that I was risking electoral suicide
in 1987 going in and telling them it was tough and they had to have
their belts pulled in and that's what we had done and will continue to
do while it was necessary. And I think what happened turnod
0traditional political wisdom on its head. In other words I believe
and I have for a long time that the Australian electorate is more
mature and more intelligent, more adult than most political
commentators and politicians give them credit for. I mean we lost $ 11
billion of our national income there in 1985/ 1986 as a result of no
fault of your listeners, the workers of this country it was just wiped
off Australia's national income by the decline of the terms of trade.
Now that meant standards had to come down and we did it in the most
equitable way possible.*
DWI The cost of building and buying a house of course is a big issue
in the State election campaign and that is what we are righ~ t in the
middle of now. You've deliberately tightened monetary policies sending
up interest rates. Have these policies damaged the local State Govt's
chances?
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PM: Well let me say this. It is true that for anty politician, any
political party, govt or opposition interest rates are always
significant and i would rather have interest rates lower than higher.
There is no politician alive who wouldn't rather be operating with them
down rather than up. But at the same time you have got to understand
that monetary policy is part of the overall policy and for-.~ the
Australian people, people of Western Australia included, we have still
a problem on the external account where we cannot keep on sucking in
imports in an unlimited way. We have got to temper the level of
economic activity in Australia so that our import bill is manageable
and therefore the problem I have got as Prime Minister in managing the
Australian economy is not a weak economy, but one in a sense which is
growing too strong, so we have got to keep the level of activity down a
bit so that we will be able to accommodate the other areas of policy
including the reductions in taxation this year. But interest rate.
will stay high for no longer than is necessary to deal with the overall
management of policy and containing the level of growth. rA~ fd may I
* Just make this point in regard to housing and interest rates, in all
those difficult circumstances interest rates under my Govt have not
reached anywhere near the peak they did under the Howard/ Fraser Govt.
DW i Prime Minister I want to move on to another subject. Labor in
this State like Federal Labor has been criticised f or its close links
with big business. Do you believe that Labor is simply changing with
the times and doing what any political party in the 1980s and
approaching the 190s must do to govern today, or do you think that that
is a liability for Federal and State Labor, the perceived liLnks with
business? PM: I think that those links were in the case of Federal Govt grossly
overstated and I think here as well. I came to Govt, in the election
of 1983, you will recall I said this is going to be a Govt which is
going to have close co-operation with the trade union movement and with
business. I called the summit, had the representatives of big
business, small business and the unions that's been the characteristic
of this Govt.
M~ So it is a necessary part of Govt in the
PM: It is a necessary part of Govt to be able to have communication
with close dialogue with and consultation with the business community.
But you've got to be in a position where in the end you make the
decisions that are in the interests of the community. That no-one can
say that the decision you take is a dictate of business. Now it cannot
be said in this State and it certainly can't be said Federally and I
guess in the end the best test of the outcome of this consultation
Diana is what's happened in the area of jobs and could I just remind
you that under this Govt Federally and under this Govt hero in this
State, we have had the highest rates of job. growth in our history and
twice and fast as the rest of the world and you only get that because
you have co-operation with both the trade union movement; and the
business community. You get common goals and understanding.
DWs Well the opposition don't necessarily feel that links with
business for this Govt certainly in western Australia have been
fortunate.* Your Federal colleague MAbtrn 1, John Moore.. was here this
week and he said a Fitzgerald type enquiry should be held here to look
into Govt business ties, Rothwells and so on, what would you Say?
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PM: It is very easy for John Moore, a singly indistinguished Federal
politician if I might say so, to come here a man who was head of the
Stock Exchange in his home state of Qid a man who has the most intimate
historical ties with business to be talking on this sort of plane. The
fact is that the people of Western Australia will be making their
decisions on the issues of cost of living, the care for the elderly,
jobs, education where our record is impeccable and leaves their record
for dead and if the John Moore's ex-President's of the Stock Exchange
is now in the political world, if they want to talk about the question
of relations between political parties and business let them look at
the only parts of Australia where any suggestion of corruption between
a political party and business exists and that is in Qid and now in
) 1tw.
DW: Prime Minister thanks very much for your time today that's all we
have time for. I know that you are very busy, thank you for joining
Us. PM: it has been my pleasure Diana.
DW;. And Just before you leave us just let me quickly give you the
cricket score. The first wicket has fallen in the cricket, with Marsh
out for 4, Taylor is on 7 and Boon still to score.
PM: Oh well it's not a bad target they have got though iB it, great
performance by Border.
DW: Thank you.
ENDS.
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