EMBARGO UNTIL DELIVERY m

AUSTRALIA,

P R 1 M E  M I N I S T E R

FOR PR^;5 9 JULY 1978

ELECTORATE TALK

The Government has begun the formal process of taking decisions  that will lead to the framing of the Federal Budget.

This year, the Budget takes on a particular significance. It is one of the most crucial years Australia has faced. It  comes when our own economic recovery is gathering pace and when  other nations are again starting to see Australia as a secure

and stable country.

Australia must again become a favoured nation for investment. We must gather and hold a competitive edge with other nations  also competing for investment funds and for markets.

Decisions we make at home also come at a critical time on the  international trade and economic front. This is a year when  trade decisions made around the world will affect Australia -

and employment opportunities for Australians - for years to  come. In fact, some of these decisions will be made over the  next few weeks by world leaders at the Bonn Summit and the MTN.

The point I make is that this is a year when Australia has to  do its utmost to put its own house in order. For those reasons,  the decisions made in this Budget will follow the most rigorous

and detailed examination of the Government's own housekeeping.

Every area of Government spending will come under the microscope.  Spending priorities will be rigidly set. The dollars we collect  from taxpayers will be used wisely and with thrift. Vie are  determined to count the cost of every spending decision we make Â·   on behalf of the Australian taxpayer. .  . .

For too many years in Australia, governments have been less than  responsible, less than caring, with taxpayers money. Governments  seem to have accepted without question that spending must  increase year after year as a matter of course - almost as a  divine right.

Those days have been finished since my Government.

While this Government controls taxpayers dollars, we will not be  seduced into automatic willy-nilly annual increases in spending.

Massive irresponsibility in Government spending - combined with  irresponsibility in wages policy - that were the hallmark of the  Labor years, was utterly counter-productive. Our country found,  to our cost, that throwing money at problems simple added to

those problems.

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2.

Although the Federal Government carries the responsibility for  the Federal Budget, the States too have a real part to play in  exercising discipline and restraint.

It is worth noting that spending by the States and their semiÂ­ government and local authorities accounts for more than half  of Australia's total public spending.

In the last two financial years (1976-77 and 1977-78), the States  have received an increasing proportion of total grants and  advances. As this increase has come in the form of untied  general grants, there is wide scope for the States to set their

own priorities.

Expenditure proposals will be examined on their merit alone. The Government will not be lethargic in providing funds to  meet real needs. We will not be backward in recognising our  responsibilities to people, groups and communities not able

to help themselves.

In fact the reverse it true. We will continue to provide creative  support and programs that advance our national cause and enhance  the well-being and dignity of Australian men and women. We will  continue to show that we govern for all Australians.

But as the National Government, we cannot afford to apply anything  less than the strictest discipline to our actions.

I believe the Premiers well understand the special role they can  play in maintaining restraint and thereby contributing to national  goals. I believe they well understand that for Australia today  there is a need for continuing economic responsibility by those  who spend public funds.

The Government is committed to responsible, disciplined, economic  management. We have demonstrated that we will not yield to pressure  to do otherwise.

The Budget delivered by the Treasurer on 15 August will consolidate  and strengthen the gains already made. It will show all Australians,  and those looking to Australia, of our complete determination to '   build on the strong foundations set over the last 2% years.

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