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P R I M E -  mmiSJEU

FOR PRESS 23 25 FEBRUARY 1979

ELECTORATE TALK

After three years of policies directed at overcoming inflation  and rebuilding the economy, the,signs of progress are clear.  There is little doubt that 1979 is the year in which the  fruits of our endeavours will become apparent.

Official figures provide increasing grounds for optimism. .   Consumer demand is.encouraging, production has strengthened, .   private investment is growing strongly, investment in plant,  and machinery is much above last year, while the outlook for  housing is showing signs of improvement. .

The rural economy too is showing a strength and a confidence  that has not been seen in Australia for more than a decade. That is heartening news for every Australian. .

A most encouraging sign for Australia this year is the  resurgence of investment in our country's great mineral  resources. A clear pointer is new capital investment in . mining. It was 75% higher in the year to September, while

the latest survey by the industry itself shows an expected  32% increase in 1979. .

This is a far cry from policies that stifled development  between 1972 and 1975. .

In manufacturing, major new investments have been announced  over the past few weeks. One of Australia's top companies, ICl, has committed a $900 million investment in Victoria and  New South Wales. General Motors Holden, one of Australia's

largest employers, is planning a new $210 million engine complex  in Victoria. .

Only this week, the Metal Trades Industry Association released  a survey which showed in the clearest terms increased confidence  in the industry throughout Australia.

Three-quarters of the companies surveyed expected improvement  in general business conditions and employment this year. . Nearly half the companies reported improved forward orders  compared with just ten weeks ago.

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It is because of this decisive vote of confidence in Australia,  and in the Government’s policies, that we are seeing the first  tentative stages of growth in manufacturing employment in  five years.

The competitiveness of Australia's firms has improved dramatically  because we are steadily getting on top of inflation. In fact,  Australia is more competitive than at any time in the last seven  years.. Despite this, much remains to be done, we must consolidate

the gains already won.

There is no room at all for the soft or easy option. Economic  realities must be faced. There is no room for relaxation of  the Government's firm economic management.

However difficult these policies may seem in the short run,  they are ultimately the only policies that can keep us on the  road to prosperity and higher employment.

Over the last two or three months we have seen some encouraging  signs of increasing employment. These are tentative signs but  they point in the same direction. Civilian employment has  risen in Australia over the five months to November 1978, the

first time this has occurred for five years. .

In October and November last year employment in manufacturing  increased - the largest increase over these two months for  five years. Overtime,  another key indicator of employment, .   has risen each month for the last seven months to the highest

level since 1974. Similarly,  the trend for new vacancies  notified by companies to the Commonwealth Employment Service  shows a better picture.

In my first broadcast to you this year, I have pointed to a  number of areas where the economy is moving ahead much better . than it has.

While we must treat the signs with caution -- the optimism in  our industries, resurgence of investment in development in  mining and manufacturing, a revitalised rural Australia —  they  nevertheless give Australia firm ground for confidence. .

As each month passes, we will have further demonstration that  Australia is recovering from the three years of Labor's Â· mismanagement that hit every Australian firmly and shattered  our economy.  .

Your Government's policies are overcoming inflation, rebuilding  the economy, providing new job opportunities and creating a  better Australia. . .

We will stay with the job you have given us.

— oOo—

