M INISTER FOR EDUCATION

PARLIAMENT HOUSE

CANBERRA A.C.T.

31 October 1977

PRESS STATEMENT BYs .

COMMONWEALTH MINISTER FOR EDUCATION,

___SENATOR THE HON. J.L. CARRICK

The Minister for Education and Minister Assisting -  the Prime Minister in Federal Affairs, Senator Garrick,  today responded to criticism by the Australian Council of  Local Government Associations of the Governmentes policies

to reduce unemployment.

In the first two years of the new Federalism under  the Fraser Government, it had provided local government with  a guaranteed percentage share of personal income tax.

During this period we have more than doubled the  untied Commonwealth funds granted to local government. They  have risen from $79.9 million in the 1975/76 Budget of the  Whitlam government to $165 million in our 1977/78 Budget,

he said.

This has enabled local government to stabilise rates  and to expand its programs. .

Senator Garrick said that any further expansion of  any substance by way of money supply would need to be achieved  by deficit financing with the inherent danger of increased  inflation. This would result in increased unemployment.

Senator Garrick said that it was important to remember  that in 1974-75 the Whitlam government had shown that increased  public expenditure did not reduce unemployment, particularly  during*inflationary periods. During the period of the greatest

increase in public expenditure ever seen in Australia, unemployment  had risen to drastic proportions.

-  At the recent Premiers8  Conference, all Premiers had  stressed that their priorities were to lower inflation and to  reduce interest rates. .  .

The additional funds available to local government  and the stability resulting from a permanent and guaranteed  share of personal income tax collections, along with the  continuing downward trend in inflation would greatly assist

in any progress to lower unemployment levels* Â·

CANBERRA 31.10.1977

