EMBARGOED- '5,00PM

PRIME MINISTER

FOR MEDIA SUNDAY, 19 JULY 1981

ELECTORATE TALK

The government's economic programme is designed to bring about  stable, non— inflationary growth. And the success of this  programme is now recognised around the world. The economy  is buoyant. Prospects for employment are improving. Unemployment  was down by 53,000 in the last year, and the June unemployment

rate was the lowest for four years. It is particularly .

heartening that there has been a substantial fall in "unemployment amongst  young people. The number of young people under 19 now unemployed  is the lowest for several years. Private business investment  is growing strongly.

There is confidnece in Australia, and our prospects for the  future are extremely heartening. The OECD expects the Australian  economy to grow more rapidly than that of any other member country in 1981 and also in 1982. It predicts a growth rate of over   "  "~

5% for both those years. But there are also dangers i n .our  present situation, and it is the responsibility of us all to  make sure that we do not throw away the great opportunities  which now lie before us. In the last few weeks disruption and

strike activities have caused great and unwarranted inconvenience  to the community. And the selfish wage push by militant unions  can threaten economic prospects in this country. In particular,  there is danger that wage rises will renew inflation, which  remains the single greatest threat to improved living standards  throughout Australia. There is a clear need for restraint by  all sections of the community to restrain inflation, for the

success of our policies in producing economic growth is already  producing inflationary pressures. If the amount that we  produce as a nation goes up by three per cent, four per cent or

five per cent in a'year, and we try to get wage increases of  ten or fifteen per cent or more each year, it is inevitable that  costs and prices will go up, and we will be back on the inflation  merrygoround. Excessive wage rises damage us all.

The prosperity currently being achieved in Austrlaia is welcome  and gratifying. It is a tribute to the sound economic policies  that this Government has pursued.  However, it must not be taken  for granted. One indispensable element in combatting inflation

is co-operation.  Increasing overall prosperity depends on  the actions of millions of individual Australians and their  willingness to put aside personal short-term gains for more

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important, long-term goals. The pursuit of excessive wage  demands can only hinder consistent economic recovery. The  Benefits of t he'economic growth now occurring in this country  m u s t  Be shared By all Australians, and not Be allowed simply to

fall into the hands of militant unions.

The Government cannot force people to be responsible. It cannot  do away with the selfishness of militant unions trying to grab  the Benefits of prosperity for their own members at the expense

of the rest of the community. The Government, will do everything  that it can to protect the interests of the community as a  whole, and to encourage the kind of climate in which reasonable  solutions can be achieved. But there is a vast need for a

sense of responsibility in this area that is shared by all  Australians.

Last Friday, after a special meeting of representatives of  Government, the ACTU and employer groups, the President of the  Arbitration Commission announced a review of" the wage fixation  principles, and called for a preliminary hearing next Wednesday

of the national wage case for it:to consider procedural matters  and to fix a timetable. The Government welcomes this initiative  from the Arbitration Commission, and believes that this  approach can be of benefit so far as the operation of the  wage guidelines is concerned. It provides, an opportunity which

nobody can afford to let slip.

The Government believes t h a t .  all industrial-action—must .-.be-_^~--~~-  called off during the course of the proceedings. Unless the  damaging industrial disruption that has been all too common in  recent times is stopped the potential provided by this initiative

for more stable industrial relations cannot possibly be fulfilled  All Australians will feel the .consequences of a failure to make  the most of this opportunity. But I believe that if we work  together, the prosperity of Australia will be increasingly

shared by all Australians,

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