MINISTER FOR FINANCE

r

PRESS RELEASE

embargo 1 PM/ THURSDAY, 2 9  AUGUST 1 9 S 5  n o: 2 0 / 8 5

ADDRESS BY THE M IN IS T E R  FOR F IN A N C E , SENATOR PETER WALSH,

TO THE MELBOURNE CHAMBER OF COMMERCE AND THE

V IC T O R IA N  EXPORTERS' A S S O C IA T IO N ,

MELBOURNE, THURSDAY, 2 9  AUGUST 1 9 8 5

I AM PLEASED TO BE ABLE TO TALK TODAY TO THIS GATHERING BECAUSE

THERE HAVE BEEN A NUMBER OF RECENT MAJOR ECONOMIC EVENTS THAT

SPELL GOOD NEWS FOR AUSTRALIAN BUSINESS MANAGERS, ESPECIALLY

e x p o r t e r s , These e v e n t s  can be su m m a r is e d  as d e v a l u a t i o n ,

DEREGULATION, GROWTH AND THE BUDGET,

Sin c e  our d e c i s i o n  to f l o a t  the dollar  there  has been a

DEVALUATION OF THE ORDER OF 20%. THAT THE DOLLAR MOVED SO

SUBSTANTIALLY IS TESTIMONY TO THE DESTRUCTIVE EFFECTS ON OUR

EXPORT INDUSTRIES OF THE PREVIOUS COALITION GOVERNMENT'S POLICY

OF DELIBERATELY OVER-VALUING AUSTRALIA'S CURRENCY. NOW THAT THE

CONSTRAINT OF AN OVER-VALUED EXCHANGE RATE HAS BEEN REMOVED, OUR

INTERNATIONAL COMPETITIVENESS HAS BEEN ENHANCED AND EXPORTS ARE

ALREADY RESPONDING TO THE DEVALUATION STIMULUS, I n THE FINANCIAL

-  1  -

YEAR JUST FINISHED THE VALUE OF EXPORTS INCREASED BY NEARLY A

QUARTER, REFLECTING A 15% GROWTH IN VOLUME AND AN 8% INCREASE IN

PR IC E S ,

I t would be m i s l e a d i n g  to a t t r i b u t e  too much of Au s t r a l i a ' s

strong  1 9 8 4 - 8 5  e x p o r t  performance  to the d e v a l u a t i o n . More than

HALF OF THE GROWTH IN EXPORTS CAME FROM INCREASED EXPORT VOLUMES

OF WHEAT, COAL AND PETROLEUM. I n THOSE EXPORT INDUSTRIES SOME

SPECIAL FACTORS-WERE AT WORK:

. WHEAT EXPORTS BENEFITED FROM CONTINUED GOOD SEASONAL

CONDITIONS; .

. SUBSTANTIAL ADDITIONAL COAL EXPORTING CAPACITY CAME ON STREAM;

AND

, THE FULL-YEAR EFFECTS OF THE GOVERNMENT'S DECISION IN AUGUST

1983 TO ALLOW CRUDE OIL EXPORTS WERE FELT,

Th i s  surge in e x p o r t s  has been a major c o n t r i b u t o r  to Au s t r a l i a ' s

RECENT IMPRESSIVE GROWTH PERFORMANCE -  A PERFORMANCE WHICH RANKS

US, FOR THE SECOND CONSECUTIVE YEAR, AMONG THE FASTEST GROWING OF

the We s t e r n  i n d u s t r i a l i s e d  c o u n t r i e s , Over the l a s t  decade

EXPORTS ON AVERAGE HAVE ACCOUNTED FOR UNDER 30% OF OUR ECONOMIC

g ro w th , I n 1984-85 t he y nearly  doubled  t h e i r  c o n t r i b u t i o n  -  to

OVER HALF OF THE NEARLY 5% GROWTH IN THE AUSTRALIAN ECONOMY,

-  2  -

Ow in g to c u r r e n c y h e d g i n g by e x p o r t e r s and to many c o n t r a c t s

HAVING BEEN WRITTEN IN AUSTRALIAN DOLLARS, THE MAIN EFFECTS OF

THE DEVALUATION ON EXPORT RETURNS HAVE. NOT YET BEEN FELT. AND OF

COURSE IT  TAKES BUSINESSES SOME TIME TO GEAR UP TO THE INCREASED

WORLD DEMAND FOR AUSTRALIAN GOODS AND SERVICES, A STRIKING

DEMONSTRATION OF THE PROSPECTS FOR THE EXPORT SECTOR IS PROVIDED

BY RECENT OECD FORECASTS THAT IN 1 9 8 5 -8 6  EXPORTS WILL CONTRIBUTE

3 , 2  PERCENTAGE POINTS OF THE EXPECTED GROWTH IN THE AUSTRALIAN

e c o n o m y , Ne t e x p o r t s  are for e c a s t  by the OECD to make a 1 , 4

PERCENTAGE POINT CONTRIBUTION TO GROWTH IN 1 9 8 5 - 8 6 .  ÃÂªÃÂÃÂ BUDGET

FORECASTS INCORPORATE A SLIGHTLY MORE CONSERVATIVE ESTIMATE FOR

NET EXPORTS OF l k  PERCENTAGE POINTS,

The s p e c i a l  facto rs  a s s o c ia t e d  w it h  w h e a t , coal and crude  o i l

expo rts  IN 1 9 8 4 - 8 5  ARE not e x p e c t e d  to BE as strong  t h i s

FINANCIAL YEAR, THIS WOULD OFFSET, TO A GREATER OR LESSER

EXTENT, THE EXPECTED BOOST TO EXPORTS FROM THE DEVALUATION,

B u r the p o i n t  r e m a in s  -  the d e v a l u a t io n  o ff e r s  a welcome  boost  to

the c o m p e t i t i v e n e s s  of Au s t r a l i a ' s, e x p o r t  i n d u s t r i e s .

Whether  the f u l l  b e n e f i t s  of the d e v a l u a t i o n  are r e a l i s e d  -  such

t h a t  our e x p o r t  c o m p e t i t i v e n e s s  i s p e r m a n e n t l y  im p r o v e d  -  DEPENDS

ON how s u c c e s s f u l  we are at e a s i n g  the i n f l a t i o n a r y  p r e s s u r e s  of

the d e v a l u a t i o n , As announced  by the Pr im e  Mi n i s t e r * and the

-  3 -

Tr e a s u r e r, the Go v e r n m e n t w i l l be a r g u i n g for d i s c o u n t i n g  of the

CPI FOR THE PRICE EFFECTS OF THE DEVALUATION AT THE NEXT TWO

NATIONAL WAGE HEARINGS,

Si n c e the f l o a t and t he $A d e v a l u a t i o n , t h e m e r c a n t i l i s t  no strum

THAT THE EXCHANGE RATE IS THE CRITERION OF EFFECTIVE ECONOMIC

PERFORMANCE HAS BEEN RESURRECTED. By THAT CRITERION B R I T A I N 'S

ECONOMIC PERFORMANCE FOLLOWING THE RESTORATION OF THE GOLD

Sta n d a r d i n 1 9 2 4  at the p r e- war rate must be awarded  h i g h e s t

m a r k s , I n f a c t  t h a t  d e c i s i o n  d e l i v e r e d  THE UK DOUBLE D IG IT

UNEMPLOYMENT FOR THE REST OF THE 1 9 2 0 s  AND THE SOCIAL CONFLICT OF

the General  St r i k e .

I t IS LESS SURPRISING THAT THE TWO AUSTRALIANS MOST

ENTHUSIASTICALLY- PEDDLING MERCANTILIST NOSTRUMS TODAY WERE THE

SUPERVISORS OF AN ECONOMIC POLICY BASED ON AN OVERVALUED $A

OSTENSIBLY TO CONTROL INFLATION, THEIR POLICIES ULTIMATELY

DELIVERED FOR AUSTRALIA DOUBLE D IG IT  UNEMPLOYMENT AND DOUBLE

D IG IT  INFLATION,

The strong  e c o n o m ic  growth  e x p e r ie n c e d  s i n c e  Labor came to o f f i c e

TWO AND A HALF YEARS AGO HAS ALLOWED THE GOVERNMENT TO IMPLEMENT

INDUSTRY POLICIES AIMED AT BRINGING ABOUT A'MORE COMPETITIVE,

ROBUST AND DYNAMIC ECONOMY. THESE POLICIES ARE DESIGNED TO

secure  Au s t r a l i a ' s lo n g - term growth  and p r o s p e r i t y .

" * . '

-  4  -

Most of the n a t i o n a l  b e n e f i t s  from the r e m o v a l of s t r u c t u r a l

OBSTACLES TO GROWTH TEND TO BE REALISED BEYOND THE NORMAL

THREE-YEAR FEDERAL EJECTION CYCLE, BUT THE BURDEN OF ADJUSTMENT

IS FELT ALMOST IMMEDIATELY, THIS HAS CAUSED PREVIOUS GOVERNMENTS

TO REGARD INDUSTRY RESTRUCTURING AS A FORMULA FOR ELECTORAL

d i s a s t e r , I n d e e d, most of the p r o t e c t i v e  b a r r i e r s  a g a i n s t

INTERNATIONAL TRADE WERE ERECTED BY LIBERAL-COUNTRY PARTY

Go v e r n m e n t s  i n t he 1 9 6 0s . Those Co a l i t i o n  Go v e r n m e n t s  are c o m i n g

TO BE CORRECTLY SEEN TODAY AS GOVERNMENTS IN FAVOUR OF PRIVATE

ENTERPRISE BUT VEHEMENTLY OPPOSED TO FREE ENTERPRISE, THE

DISTINC TION IS A CRUCIAL ONE, SPELLING THE DIFFERENCE BETWEEN

ECONOMIC GROWTH AND STAGNATION,

From the b e g i n n i n g  t he Hawke Go v e r n m e n t has b e e n c o m m i t t e d  to

REMOVING GROWTH IMPEDIMENTS. THE RESULTS, EVEN AT THIS EARLY

STAGE, ARE IMPRESSIVE,

We REDUCED THE LEVEL OF PROTECTION OF THE STEEL INDUSTRY AND IN

SO DOING, WE PROVIDED ASSISTANCE IN A MORE E F F IC IE N T  MANNER

THROUGH DIRECT SUBSIDIES. WlTH EFFECT FROM THE BEGINNING OF 1 9 8 4

WE ABOLISHED IMPORT QUOTAS ON ALL FLAT STEEL PRODUCTS (THE ONLY

STEEL QUOTAS REMAINING IN PLACE AT THAT T IM E ) ,

I n f o r m a t io n  r e l e a s e d  by BHP._in July shows t h a t  the Au s t r a l i a n

STEEL INDUSTRY HAS BEEN TRANSFORMED FROM A FEEBLE PERFORMER

VULNERABLE TO COMPETITION FROM IMPORTS THREE YEARS AGO TO A

STRONG, HIGHLY COMPETITIVE INDUSTRY TODAY, -

-  5  -

The ag gre gat e l e v e l s of p r o t e c t i o n  for t he a u t o m o b i l e  and

T E X T IL E S , CLOTHING AND FOOTWEAR INDUSTRIES COMPRISE THE PREMIUM

BIDS FOR QUOTAS, OVER AND ABOVE THE TARIFF LEVELS , OUR POLICIES

PROVIDE FOR THE SALE OF AN INCREASING PROPORTION OF QUOTA, THE

ULTIMATE REMOVAL OF QUOTAS AND PROGRESSIVE TARLFF REDUCTIONS,

The quota p r e m i u m s b i d have be en f a l l i n g ,

Motor v e h i c l e  qu ota s for w h i c h t e n d e r s were r e c e i v e d  l a s t month

HAVE A PREMIUM OF ONLY 11%, COMPARED WITH 94.5 %  LAST YEAR .

Mo r e o v e r, t ho se t e n d e r s were for a p e r i o d of four y e a r s, d u r i n g

WHICH THE TARIFF WILL BE REDUCED BY MORE THAN 15%.

For t e x t i l e s , c l o t h i n g  and footwear t h e r e has a lso be en

ENCOURAGING NEWS, THERE HAS BEEN A SUBSTANTIAL REDUCTION IN

TENDER PREMIUM RATES FOR 1986. I n A .NUMBER OF CATEGORIES NO

PREMIUMS WERE BID AT ALL. THE EFFECTIVE LEVEL OF PROTECTION IN

MANY PARTS OF THESE INDUSTRIES HAS ALREADY FALLEN TO THE TARIFF

LEVEL,

Th i s  r e c e n t  news d e m o ns t ra te s  t h a t trade i m p e d i m e n t s  have been

REDUCED SUBSTANTIALLY IN JUST TWO AND A HALF YEARS.

La s t w e e k' s Bud get  i s another  landmark  i n the s u c c e s s f u l

IMPLEMENTATION OF THE GOVERNMENT'S STRATEGY FOR SUSTAINED

NON-INFLAT I ONARY ECONOMIC GROWTH, THE GROWTH IN GOVERNMENT

SPENDING WAS LIMITED TO 1 ,3 % , THE SLOWEST IN S IX  YEARS. THIS

-  6  -

REVERSES A FIVE YEAR TREND OF OUTLAYS RISING AS A PROPORTION OF

Gross Do m e s t i c Pr o d u c t. To ta l 1 9 8 5 - 8 6  Bu d g e t o u t l a y s are $ 2 , 3 0 0m

BELOW THE SELF-IMPOSED TRILOGY L I M I T ,

The Bu d g e t d e f i c i t  of $ 4 , 9 1 9m p l e a s a n t l y  s u r p r i s e d  most -

COMMENTATORS AND, I BELIEVE, MOST BUSINESSMEN. I n ONE H IT  WE

HAVE REDUCED THE D E F I C I T  BY A MASSIVE 34% IN REAL TERMS.

I t WOULD BE IRRESPONSIBLE TO MAINTAIN A "STRUCTURAL" D E F I C I T ,

I . E ,  A D E F IC IT  WHICH WOULD PERSIST EVEN IN A FULL EMPLOYMENT

s i t u a t i o n . Th e r e are d i f f e r e n c e s  of o p i n i o n  on what a s t r u c t u r a l

D E F IC IT  I S ,  DEPENDING ON ASSUMPTIONS ABOUT THE NATURAL RATE OF

UNEMPLOYMENT, Be THAT AS IT  MAY, THE D E F IC IT S  IN OUR FI RS T TWO

Budge ts have p r o v i d e d  enough s t i m u l u s  to s u s t a i n  h i g h growth

RATES AND FALLING INFLATION, I T  FOLLOWS LOGICALLY THAT THE

D E F IC IT  MUST BE PROGRESSIVELY REDUCED FOR AT LEAST AS LONG AS

UNEMPLOYMENT CONTINUES TO FALL,

Our EXPENDITURE RESTRAINT, WHICH MADE POSSIBLE THE HUGE CUT IN

THE D E F I C I T ,  WILL EASE THE PRESSURE ON FINANCIAL MARKETS CREATED

BY THE VERY STRONG COMPETITION FOR FUNDS AMONG PRIVATE INVESTORS.

Pr i v a t e b u s i n e s s  f i x e d  i n v e s t m e n t  grew by 4% l a s t f i n a n c i a l  yea r

AND IS EXPECTED TO GROW EVEN FASTER THIS YEAR, OUR EFFORTS IN

CUTTING BACK THE HUGE D E F I C I T  WE INHERITED WILL ALLOW THAT

JOB-CREATING INVESTMENT TO GO AHEAD, .

-  7 -

I AM CERTAINLY NO ADVOCATE OF PROFLIGATE GOVERNMENT SPENDING OR

THE UNNECESSARILY HIGH TAXES REQUIRED TO SUPPORT I T ,  BUT THIS

DEBATE MUST BE KEPT IN PERSPECTIVE, SOME FUNDAMENTAL FACTS

SHOULD BE KNOWN, THEY INCLUDE:

. By the s tandards  of most OECD c o u n t r ie s  n e i t h e r  t a x e s  nor

Government  e x p e n d i t u r e  i n Au s t r a l i a  are h i g h .' Au s t r a l i a  ranks

ABOUT SIXTH LOWEST OF THE 2 3  OECD COUNTRIES IN TAXES AND

Government  e x p e n d i t u r e  as a p r o p o r t io n  of GDP.

. The e f f e c t  on Commonwealth  Budget  outcomes  -  through  payment

OF UNEMPLOYMENT BENEFITS AND INCOME AND OTHER TAXES FOREGONE -

OF TODAY'S UNEMPLOYMENT LEVEL COMPARED TO THE UNEMPLOYMENT

LEVEL OF THE 1 9 6 0 s , IS AROUND $5b . THE EXTRA INTEREST

PAYMENTS REQUIRED TO SERVICE THE CUMULATIVE DEFICITS CAUSED BY

UNEMPLOYMENT OVER THE LAST 1 0  YEARS IS ANOTHER $2~3b , THE

BEST WAY OF DEALING WITH THAT PROBLEM IS TO MOVE BACK TO FULL

EMPLOYMENT, THIS GOVERNMENT HAS MADE SUSTAINED PROGRESS IN

THAT DIRECTION,

, La s t month the L i b e r a l  Pa r t y ' s Feder al  Co u n c i l  c a r r i e d  a

MOTION CALLING FOR EXPENDITURE 1 CUTS EQUAL TO 4% OF GDP,

Measured  a g a i n s t  t h i s  y e a r ' s e s t i m a t e d  GDP t h a t  would r e q u ir e

AN OUTLAYS CUT OF $ 9 . 3 b , ÃÂ¤ÃÂ· IS COULD BE DONE BY:

-  8  -

-  CUTTING BY $20 A WEEK ALL AGE, WAR SERVICE D I S A B I L I T Y ,

INVALID AND WIDOW'S PENSIONS, SUPPORTING PARENT'S BENEFIT

AND UNEMPLOYMENT BENEFITS;

-  TERMINATING FAMILY ALLOWANCES;

-  CANCELLING ALL PAYMENTS TO INDUSTRY, THE ARTS AND FOREIGN

A ID;

-  ABOLISHING THE DEPARTMENT OF PRIMARY INDUSTRY AND ALL

PAYMENTS MADE THROUGH I T ;  AND - '

-  CLOSING DOWN THE ABC, CSIRO AND THE ATOMIC ENERGY

Co m m i s s i o n , "

Even t h e n a n o t h e r $ 8 0 0m worth of c u ts would have to be m a d e,

I n v i e w  of t h e i r  suppo rt  for the c u t t i n g  PROPOSITION I HAVE

i n v i t e d  the Op p o s i t i o n  Leader and h i s  De p u t y  to n o m in a t e  t h e i r

PREFERRED CUTS IF THEY DO NOT LIKE THE INDICATIVE LIS T ABOVE,

Un t i l  t he y do I am e n t i t l e d  to t r e a t  them as cargo c u l t i s t s .

The Op p o s i t i o n ' s c r e d i b i l i t y  on e x p e n d i t u r e  d i s c i p l i n e  i s f u r t h e r

t a r n i s h e d  by i t s  1981 Razor Gang record  -  i n e f f e c t i v e  to the

POINT OF IRRELEVANCE " BY ITS AS YET UNREPUDIATED 1 9 84  FIRM

PROMISES TO INCREASE OUTLAYS BY MORE THAN $1 b -  INCLUDING SUCH

-  9  -

BIZARRE UNDERTAKINGS AS BUILDING A RAILWAY TO DARWIN -  AND BY

LAST MONTH'S PROMISE FROM THEIR NATIONAL PARTY PARTNERS FOR AN

ADDITIONAL $ 2 6 0m FOR AGRICULTURE ALONE,

YOU WILL RECALL THAT ONE OF THE DECISIONS WE MADE THIS YEAR WAS

on t he Ex p o r t Ma r k e t i n g  De v e l o p m e n t  Gr a n t s Sc h e m e. I t i s

APPROPRIATE IN THIS FORUM FOR ME TO EXPLAIN THE GOVERNMENT'S

THINKING BEHIND THAT DECISION.

For some t i m e t h e Go v e r n m e n t had been c o n c e r n e d a b o u t t he

OPERATION OF THE EMDG SCHEME, APART FROM OUR CONCERN OVER ABUSE

OF THE SCHEME, INCREASING DOUBTS. AROSE OVER ITS EFFECTIVENESS.

The Government  i s concerned  to ensure  t h a t p u b l i c  funds p r o v i d e d

FOR EXPORT INCENTIVES ARE USED IN A COST-EFFECTIVE MANNER AND

RESULT IN AN IMPROVEMENT IN SUSTAINED EXPORT PERFORMANCE. I.T IS

MINDFUL THAT THE EMDG SCHEME IS AN INCENTIVES SCHEME TO ENCOURAGE

Au s t r a l i a n  e x p o r t e r s  to seek out and d e v e l o p  o v e r s e a s  m arkets  and

NOT A SUBSIDY FOR INDUSTRY. Â·

YOU ARE PROBABLY AWARE THAT M r . DAWKINS INTRODUCED LEGISLATION TO

AMEND THE SCHEME IN THE PARLIAMENT LAST WEEK. I n HIS SECOND

Re a d in g  Sp e e c h , he h i g h l i g h t e d  some of the p e r c e i v e d  d e f i c i e n c i e s

OF THE EXISTING SCHEME. FOR EXAMPLE, ALMOST 50% OF CLAIMANTS'

WERE SHOWN TO: BE DROPPING OUT OF THE SCHEME AFTER THREE YEARS,

HAVING GENERATED LITTLE OR NO EXPORT EARNINGS., ÃÂªÃÂÃÂ SCHEME

ENABLED RECIPIENTS TO OBTAIN GRANTS OF UP TO $ 2 0 0 , 0 0 0  PER YEAR

FOR THE FIRST THREE YEARS WITHOUT NECESSARILY GENERATING ANY

-  10 -

EXPORT EARNINGS AT A L L , AND LESS THAN 51 OF CLAIMANTS, GENERALLY

THE LARGE EXPORTERS, WERE RECEIVING ALMOST ONE-THIRD OF TOTAL

EMDG p a y m e n t s. Many of t h e s e were s u b s i d i a r i e s  of la rg e

INTERNATIONAL CORPORATIONS WITH ACCESS TO THEIR OWN # IN-HOUSE/

MARKETING NETWORKS AND THEREFORE WITH A QUESTIONABLE NEED FOR

ASSISTANCE FROM SCARCE PUBLIC FUNDS.

The MOUNTING COST of the scheme l e d to i t b e i n g u n d e r f u n d e d i n

RECENT YEARS BY SUCCESSIVE GOVERNMENTS RESULTING IN A LARGE

BACKLOG OF UNPROCESSED EMDG CLAIMS. TOWARDS THE END OF 1 9 8 4 - 8 5

the Government  p r o v i d e d  funds  of $54m to reduce  the backlog  of

OUTSTANDING CLAIMS, THESE FUNDS WERE ADDITIONAL. TO THE $125 m

PROVIDED FOR THE EMDG SCHEME IN THE 1 9 8 4 - 8 5  BUDGET.

The Go v e r n m e n t ' s v i e w  of the scheme  was the s u b j e c t  of e x t e n s i v e

CONSULTATION WITH INDUSTRY GROUPS AND EXPORTERS, BY DIRECT

CONTACT AND THROUGH A SERIES OF SEMINARS IN STATE CAPITALS. THE

Government  also took account  of the r e c o m m e n d a t io n s  in the report

of the Na t i o n a l  Expo r t  Ma r k e t in g  St r a t e g y  Pan el and the r e s u l t s

OF AN EVALUATION OF THE SCHEME BY THE DEPARTMENT OF TRADE. I

UNDERSTAND THE VICTORIAN EXPORTERS' ASSOCIATION PROVIDED COMMENTS

to the Go v e r n m e n t . Â· .

The Government  t h e r e f o r e  d e c id e d  to in t r o d u c e  a t i g h t e r  e xpo r t

EARNINGS TEST UNDER THE SCHEME, BUT WILL ALLOW A TWO YEAR 'NO

EXPORTS' PERIOD OF GRACE FOR NEW EXPORTERS, W e ALSO DECIDED TO

EXCLUDE CLAIMANTS WITH EXPORT EARNINGS IN EXCESS OF $20 m ,

-  11 -

A MINIMUM ELIGIBLE EXPENDITURE TEST OF $ 5 , 0 0 0  WILL APPLY TO ALL

CLAIMANTS SO THAT GRANTS ARE PAID ONLY ON ELI GIBLE  PROMOTIONAL

EXPENDITURE IN EXCESS OF THAT FIGURE, THIS IS TO SAFEGUARD

AGAINST POSSIBLE FRIVOLOUS CLAIMS. THE GOVERNMENT CONSIDERS THAT

$ 5 , 0 0 0  REPRESENTS A MEASURABLE AMOUNT OF EXPENDITURE WHICH

CLAIMANTS SHOULD BE PREPARED TO BEAR IN ORDER TO DEMONSTRATE

THEIR BONA FIDES AND SOME FINANCIAL CAPACITY TO MOUNT SUSTAINED

EXPORT A C T I V I T I E S ,  .

The Go v e r n m e n t d e c i d e d  to add e d u c a t i o n , h o s p i t a l  and m e d i c a l

SERVICES TO THE L I S T  OF ELIGIBLE SERVICES UNDER THE SCHEME; AS

WELL AS INSURANCE PREMIUMS PAID IN PROTECTING AUSTRALIAN PATENTS,

REGISTERED DESIGNS OR TRADE MARKS OVERSEAS AND COPYRIGHTS OPEN TO

INFRINGEMENT OUTSIDE AUSTRALIA,

The Go v e r n m e n t ' s o b j e c t i v e  i n the p r o p o s e d l e g i s l a t i o n  has be en

TO pr odu ce, a pa ckage w h i c h w i l l b e s t a d d r e s s t h e i d e n t i f i e d

s h o r t c o m i n g s  i n the s c h e m e, and e f f e c t i v e l y  a l l o c a t e the

Go v e r n m e n t ' s a s s i s t a n c e  to the e x p o r t s e c t o r, v i a  the s c h e m e,

CONSISTENT WITH ITS INTENTION TO RESTRAIN SPENDING AND REDUCE THE

D E F I C I T ,

Ec o n o m i c growth and a h e a l t h y b u s i n e s s  s e c t o r go hand i n h a n d; -

SO, TOO, DO e c o n o m i c growth and i m p r o v e d o p p o r t u n i t i e s  i n t he

LABOUR MARKET, FOR BOTH BUSINESS "AND LABOUR, MUCH HAS BEEN

-  12 -

ACHIEVED IN THE PAST TWO AND A HALF YEARS IN THE IMPLEMENTATION

OF POLICIES TO GET THE ECONOMY GROWING AGAIN AFTER A PROTRACTED

PERIOD OF RECESSION,

Ju s t as i m p o r t a n t , we have t a k e n some i m p o r t a n t  s t e p s to promo te

LONG-TERM GROWTH, I HAVE REFERRED TO SOME OF THE STRUCTURAL

ADJUSTMENT MEASURES WE HAVE PUT IN PLACE, AND TO OTHER MEASURES

WE HAVE TAKEN TO ASSIST IN ENHANCING THE INTERNATIONAL '

COMPETITIVENESS OF AUSTRALIAN INDUSTRY. "

The Go v e r n m e n t i s , w or ki ng now w i t h t h e s e s e c t o r s to r e v i e w the

REGULATION OF BUSINESS, AND WITH EPAC TO LOOK AT FURTHER POLICIES

FOR LONG- TERM GROWTH.

Many ch a llen ges  r e m a in  for the Government  a n d , I b e l i e v e , for

BOTH BUSINESS AND LABOUR, IN ENSURING THAT THE ECONOMIC SUCCESS

OF THE LAST COUPLE OF YEARS IS BUILT UPON,; TO THE BENEFIT ALL

Au s t r a l i a n s .

I LOOK FORWARD TO, AND AM CONFIDENT OF, THE COOPERATION OF

Au s t r a l i a n  b u s in e s s  in r e s p o n d in g  to t h e s e  c h a n g e s .

Thank y o u .

