PRIME MINISTER
CH( EM. & AA8T DELZ VUR NI-LU ZD~ RLEZ VER
SPREE BY " M MINSTE
1969IP -13 NU 1989
Last Wednesday I had the pleasure of presenting the
Australian Quality Awards to a nuber of companies who have
demonstrated their coitment and their capacity to improve
the quality of Australian goods and services.
Today I have the equal pleasure of participating in this
presentation of the 1959 Australian Export Awards, in which
we honour the achievement of those whto compete,, and succeed,
in the world's markets.
By themselves, these two Awards show that some companies, at
least, have learned the funaena lesson of the Australian
economy: that we need to compete efficiently on world
sarkets if we are to achieve sustainable prosperity for
ourselves and for our children.
But taken in conjunction with reforms being implemented
throughout the economy,, these Quality and Export Awards show
that this manage is being understood and acted upon not
just by a few companies that have won the Awards not just
by he finalists in each of the Awards but very generally
b~ qout the commity.
Australia learning the lesson of economic survival.
Australians Wre starting to implement the necessary changes
to ensure we are a compeitive and successful economy.
Over the year since I addressed the Bicentennial Export
Award finalists,, much of the attention of economic
cometators baa focused on the current account deficit and
on the alleged inability or unillingness of Australian
industry to compute. This alleged reluctance to whave a go"
is attribuated to our lack of an export culture in other
words, to our lack of confidence in ourselves and in
Australia' a long term economic future.
Let me make it very clear today that the export pessimists
who hold such views have got it wrong.
We need look no further than the enormous success our
primary producers have had over decades in winning markets
overseas in developing products to meet new market
opportunitiesi in competing with the best of their foreign
rivals and consistently beating them in price and quality
be it in wool, grains, meats, minerals or metals.
You don't hear the allegations made against these primary
producers that Australians don't have the nous or the guts
to export.
Importantly, those successful exporters are competing
without the intervention or protection of Government. our
primary comaodity exports are among the most efficient
that is, the most unprotected in the world.
Many of our manufacturers have not developed this export
culture precisely because it has not, in decades past, been
required of then.
cocooned by protectionism, they were not only discouraged
from seeking overseas markets, they were actually incapable
of successful overseas competition because of the tariff
component of their pricing.
But you don't have to look only at primary producers at
industries where we have been blessed by nature with
magnificent resources, and where we have developed
production expertise over generations to see that
Australians can and do export.
Look at some of our more recent industries in the services
sector. Tourism, conaultancies and education services are
all earning valuable foreign dollars by creating, offering
and marketing services that are in demand overseas.
I know tourist operators are going through difficult tines
now. But I think we all know that Australia's attractions
as a tourist destination are peranent ones, and our ability
to provide foreign tourists with memorable and unique
vacation experiences will survive the teporary, albeit
significant, disruption operators are facing at present.
So let's not lament our alleged lack of an export culture.
we do have an export culture, we are good exporterst we only
need to expand these attitudes and practices of
competitiveness throughout the economy.
The finalists and winners represented here know that.
i want to express my thanks to the sponsors and orqanisers
of this year's Australian Export Awards and I want to
congratulate all the finalists on their achievements.
As a group, the finalists have contributed more than $ 1.7
billion in export earnings for 1988-89 by selling goods and
services ranging from artificial sno making equipment to
ophthalmic lenses.
The winners, when they are announced shortly, will know
their victory puts then at the head of a very competitive
list of companies. They really are the cream, and deserve
our heartiest congratulations.
But the basis for optiuism in Australia's export orientation
lies, as I have said, not just in the treendous
achievements of these individual companies.
It is apparent throughout the economy.
Over the past year we have seen a real increase in business
investment of over 15 per cent. Business investment as a
share of total national production is at its highest level
since statistics were kept.
In addition, Access Economics' recent survey, of large
investment products with a potential to earn foreign
exchanqe, istA projects worth $ 49 billion that are under
construction or commtted.
This survey is important in two ways. First, it highlights
the sharp contrast between the current investment surge and
the last " investment boonm of the early 1980s.
The current surge is spread over a wide range of
manufaoturers, including transport equipment, chemicals,
paper and printing, steel and food processing, and tourist
activities.
This year's Export Awards reflect this trend, with finalists
in comndities, consultanoies, high-tech manufacturing and
tourism.
And second, the Access Economics survey confirms the
substantial export implications of this investment.
Access Sconomics identifies 6 major investment projects
either coming on stream or already under construction which
in a few years are expected to generate close to $ 5 billion
a year in foreign exchange.
This is equivalent to about 10 per cent of the value of
goods and services exports in 1988-89# or, in term of our
current account dot bit, about 30 per cent for the same
period. of course, part of the argument of the export peshimists is
that what investment we do see is largely replacement driven
and not now investment for export.
Preliminary survey work by the Bureau of Industry Economics
suggests that this view, too, is misleading.
Much of the so-called replacement investment involves
substantial capital enhancement substituting competitive
capacity for uncompetitiv, capacity, which in turn increases
our ability to produce and compete on world and domestic
arkets.
Manufacturers surveyed by the Bureau did not see their
investment as being purely for replacement: they envisage
that capital upgrading will result in both capacity gains
and unit costs reduction. both of which are vital if we
are to gear up our export effort.
Close to two thirds of this yearl's Export Award entrants
report having invested in now equipment or facilities
primarily geared for exporting.
so contrary to the pessimistic view, we have made
considerable progress and our self-image, our strategic
vision, is changing from the inward-looking focus of the
past. But I don't want in any of thi. to sound like Pangloss who
pretended that all was for the best.
I certainly don't believe we can be complacent about the
task of extending the export culture throughout our economy.
But I do argue and I argue it with pride and great
conviction in this forum that we don't do ourselves any
sort of justice by imagining we are incapable of making a
very big impact, with all our products, in the world market.
My Government is determined to do all it can to facilitate
this crucial progress.
I don't went, here, to give you a lecture on micro-economic
reform, but I make the two point, that firfst, we are
embarked on an unprecedented program of reform to lift the
productivity of the nation and, second, we have made further
big strides since I spoke at last year's Awards.
Financial deregulation, tariff reductions, company tax
reform, ending the two airline agreement, bringing
competition to areas of telecommunications such a. in
customer premises equipment and value added services,
reducing shipping manning levels to international levels and
reducing excess waterfront manning are all playing a
valuable role.
only an c ony which faces competition both domestically
and internationally can have an export culture.
That is why our primary industry and services sectors have
much a culture.* That is why our manufacturing industries
are developing one.
my Government's reform agenda is a continuing one. We still
have far to go.* But the climate has changed. Everyone now
wants an internationally competitive economy and in willing
to make the necessary changes so VS can't relax our
efforts. in our international diplomacy,. we've been pursuing the saee
goals. We have been determined in our efforts to achieve a
liberalisation of world trading rules in particular,
through out efforts in the Cairns Group to achieve a
successful outcome to the current Uruguay round of world
trade talks.
And we took the initiative to convene in Canberra the
maeting last week of senior ministers of twelve Asia Pacific
economies the APEC Conference seeking to build closer
regional cooperation. I was delighted at the successful
outcome of the conference not least at its decision to
convene a meeting of Trade Ministers to exert further
pressure for a successful outcome to the Uruguay process.
Ladies and gentlemen,
The Australian Export Awards pay tribute to those firms with
the vision to persevere with the export challenge. The
awards serve not only as en accolade to the endeavour. of
this yearts finalists and winners but also provides
practical. insight into how Australian exporters can succeed
overseas. The finalists in these awards all of you here today play
a vital role in Australia's move towards developing a mature
export culture.
I congratulate you all and thank you for providinq models of
export success from which other Australian business can and
must learn.