EMBARGO:  5:00 PM

FOR MEDIA SUNDAY, 20 JULY, 1980

ELECTORATE TALK

Federal Cabinet has been meeting in Canberra over the past  week making decisions that will lead to the framing of this  year's Budget. .

There is still much to be done,  but the Budget that the  Treasurer will deliver in four weeks'  time will consolidate  and strengthen the progress that we have made over the  past five years.

That progress has resulted from consistent policies that have cast aside soft options and the so-called "easy solutions".

Our policies have consistently maintained downward pressure  on inflation, and have helped restore the profitability, the  competitiveness and vitality of Australian industries.

The Organisation for Economic Co-Operation and Development  has recently drawn attention to the fact that Australia's  growth prospects are twice as strong in 1980 as those for  the O.E.C.D. area as a whole.

What is particularly pleasing to the Government is that  Australia has been able to maintain and improve its level of  economic activity at a time when there is a significant downturn  in a number of major overseas economies.

This better growth rate reflects Australia's sound economic  management,  improved competitiveness and abundant resources, .  including energy.

This potential would not,  of. course, be realised were it not  for our tighter control over inflation.

Australia's inflation rate this year is forecast by the O.E.C.D.  to remain significantly below the average of the O.E.C.D. area.  Current developments in the Australian economy support' our  faith in Australia's prospects.

The basis for this encouraging outlook can be seen in a revitalised  Australian capital market; in the high level of private capital  inflow; in the progress of our industries such as the great  rural industries which had earlier encountered severe setbacks.

For the first half of the past financial year the main source  of improving activity was exports.

It is most pleasing that recent figures show that the sources  of economic growth broadened in the second half of the . . . . .  .

financial year.  .  \ . . Â· Â· Ã¢ÂÂ  . Â· . Â· Â·  Ã¢ÂÂ  '  -

Private consumption and private investment are showing . indications of solid growth.  -  .  .  \

The rise in investment, based on confidence in the future,   is expanding Australia's capacity to generate prosperity and '  jobs in the years ahead.  .  . .  .  .  .  .

A number of important domestic surveys confirm, the strength  of Australia's prospects as forecast by the.  0. E .  C .  D .  . . ,

The survey in May of investment prospects by.the Department . of Industry, and Commerce shows that there is $29 billion of Ã¢ÂÂ  investment projects.committed or in a final feasibility stage.

This investment is beginning to be put in place.

A survey taken during April and May by the Bureau of Statistics  shows that expected investment expenditures for the current  financial year are about 407= higher than the expectations at  this time last year.

Even allowing for inflation, this rise is dynamic.

The Statistician's survey reflects the very large anticipated 1 investment in resource-based projects but also shows the  improvement taking place in a wide range of Australian industries.

This investment demonstrates a confidence that Australian  goods can be competitive both at home and abroad.

In the competitive trading world in which we live the present  encouraging outlook is due largely to the Government's  economic policies. .

Sensible and firm economic management is a continuing requirement  if we are to keep this momentum going.

We-  have particular advantages in resources, .  in energy, and in  our geographic position in the fast-growing Asia-Pacific region  which gives us the potential to partially ride out the bleaker  conditions in the world economy. .  ,  .

More than 457Â». of our exports now go to Asian and Middle East .  .. ; Â· ,   countries which in general, are likely to do relatively well -; in sustaining their growth rates in the years ahead.

The world is becoming increasingly dependent on reliable .  .. energy supplies and. in that we are better placed than most. 7 . .  ,

I must emphasise, however, that these forecasts depend very 7 '  * much on the continuing success of our anti-inflationary strategy.

Warning signs are already here.

The rate of increase of wages has been accelerating in recent  months placing upward pressure on the Australian inflation rate.

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Claims for increased benefits such as a 35-hour week are  ;  totally self-centred and irresponsible when the welfare of ; Ã¢ÂÂ¢  the whole Australian community depends on retaining our. .  favourable position in the world; on keeping our recovery

on the move.  _  .  .  .  .  .  .  ,  .  .

It is fair enough to ask what all this activity and development -  means to the average Australian;.  what all this development, means to an Australian family wanting a decent education for  its children and a secure future for them. .

The answer is straight-forward. -  A nation can only consume .   what.it produces.  A nation cannot consume what it.does, ... ..  ’ Ã¢ÂÂ   ; not work for. . ,  . Â· .  . .  .  .  .  .  Ã¢ÂÂ   . ' Â·  .  .  .  .  Â· . ' .  Ã¢ÂÂ   . . .  '  :  . Â· .  Â·

If we want improved standards of living, if we want improved  education, health and welfare programmes;  all of these can only  be provided from the wealth earned by the people of our nation.

There is no particular value in development for its own. sake.

Its merit lies in the jobs that it provides for Australians;   and in the opportunities that it makes available to  individuals and to our community to share in a high standard  of living as a result of sustained economic growth.

To this end, the Government is committed to responsible,   disciplined economic management.

Our track record matches that commitment.

The Budget to be brought down next month will show all  Australians - and those looking to Australia - of our resolve  to build on the strong foundations established over the  last five years.

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