EMBARGO: 7.00 p.m.

P R I M E  MINISTER

FOR PRESS 3 SEPTEMBER 1978

ELECTORATE TALK

A u s t r a l i a  to d a y  i s  now p o i s e d  to  move i n t o  t h e  1 9 8 0 1s w ith  v i g o u r ,

v i t a l i t y  a n d  new s p i r i t .  T h e r e . i s  a l i g h t  on t h e  h i l l  f o r

A u s t r a l i a .  An i n f l a t i o n  r a t e  o f  5 p e r c e n t  by May o r Ju n e  n e x t  y e a r

i s  a  r e a l i t y  - and n o t  j u s t  w i s h f u l  t h i n k i n g . T h a t w i l l  l e a d  to

a  c o n t i n u i n g  f a l l  i n  i n t e r e s t  r a t e s  and to  g r e a t e r  c o n fid e n c e  -

b o t h  h e r e  an d  a b ro a d .

A 5 p e r c e n t  i n f l a t i o n  r a t e  w i l l  n o t  s a t i s f y  u s , b u t  i t  w i l l  mean

t h a t  A u s t r a l i a  w i l l  b e  u n iq u e ly  p l a c e d  to  ta k e  a d v a n ta g e  o f

new in v e s tm e n t and w o r ld  t r a d e .  How ever d i f f i c u l t  t h e  w o rld

t r a d i n g  s c e n e  m ig h t become - and I  do n o t  t h i n k  i t  w i l l  im p ro v e

f o r  m onths o r  e v en  y e a r s  - i t  i s  now w i t h i n  o u r c a p a c i t y  t o  p u t  1

A u s t r a l i a  i n  a f a v o u r e d  p o s i t i o n .

P e o p le  a r e  a l r e a d y  c o m p a rin g  A u s t r a l i a  w ith  W est Germany a s an

e n c o u r a g in g  p l a c e  f o r  in v e s tm e n t. T h a t p u ts  A u s t r a l i a  i n  h i g h l y

r e s p e c t e d  i n t e r n a t i o n a l  company. C o u n tr ie s  w i l l  w a n t o u r r e s o u r c e s

b e c a u s e  we a r e  a s t a b l e  s u p p l i e r ,  w ith  s t a b l e  p o l i t i c a l

e n v iro n m e n t - and b e c a u s e  we w i l l  b e  h i g h l y  c o m p e titiv e  on th e

w o r ld  m a r k e t s . T h a t w i l l  mean a f u r t h e r  s t r e n g t h e n i n g  o f  o u r

b a la n c e  o f  p a y m e n ts, an d  g ro w th  t h a t  i s  s u s t a i n a b l e  i n  t h e  lo n g  t e r n ,

a n d  m o st i m p o r ta n t i t  w i l l  mean new j o b s .

The q u e s t i o n  o f  jo b s  b e in g  a v a i l a b l e  i n  a r a p i d l y  c h a n g in g

t e c h n o l o g i c a l  e n v iro n m e n t h a s  r i g h t l y  c o n c e rn e d  many A u s t r a l i a n s ,

i n c l u d i n g  t h e  t r a d e  u n io n  m ovem ent. The G overnm ent s h a r e s  t h a t

c o n c e rn . Two y e a r s  ago we e s t a b l i s h e d  t h e  D e p a rtm e n t o f

P r o d u c t i v i t y  to  r e c t i f y  t h e  f a i l u r e  o f  s u c c e s s i v e  g o v e rn m e n ts t o

d e v is e  lo n g  te rm  p o l i c i e s  r e g a r d i n g  th e  im p a c t o f  te c h n o lo g y  on

p e o p le . The D e p a rtm e n t h a s a l r e a d y  won t h e  s u p p o r t  o f  u n i o n s ,

m anagem ent and S t a t e  Governments i n  p r o d u c t i v i t y  im provem ent  program m es i n  la b o u r  i n t e n s i v e  i n d u s t r i e s  w h ic h  r e l a t e  d i r e c t l y

t o  t h e  c o n se q u e n c e s o f  t e c h n o l o g i c a l  c h a n g e .

The aim  i s  t o  r e j u v e n a t e  o u r e x i s t i n g  i n d u s t r i e s  and to  h a rm o n is e

th e  r a t e  o f  change c o n c e rn in g  th e  i n t r o d u c t i o n  o f  new te c h n o lo g y ,

t h e  r e t r a i n i n g  o f  la b o u r  and t h e  c r e a t i o n  o f  new i n d u s t r i e s  .

w i t h  new j o b s . .

The p o i n t  n e e d s  m aking t h a t  A u s t r a l i a  n e e d s  new te c h n o lo g y  t o  b e

c o m p e ti t iv e  a n d  t o  f i n d  e x p o r t  m a r k e t s . T h a t te c h n o lo g y  s h o u ld

b e  a s i n n o v a t i v e  a s p o s s i b l e .

The G overnm ent h a s  r e c o g n i s e d  t h a t  a g r e a t  d e a l  o f  w ork h a s  t o  b e

done to w a rd s c r e a t i n g  an e n v iro n m e n t w h ere o u r  i n d u s t r y  can r e a p  t h e

b e n e f i t s  o f  te c h n o lo g y . We know t h a t  f a i l u r e  t o  im p ro v e o u r te c h n o lo g

w o u ld  l e a d  t o  f u r t h e r  u n c o m p e titiv e n e s s  and l o s s  o f  j o b s .

2 .

W ith c o n s u l t a t i o n  an d  e x t e n s i v e  c o m m u n icatio n  w i t h  t h e  u n io n s ,

G overnm ents and m anagem ent, we h a v e  b e e n  m aking c o n s i d e r a b l e   p r o g r e s s .  I n  A u s t r a l i a  we h a v e  n o t h in g  to  f e a r  fro m  new te c h n o lo g y .

As A u s t r a l i a n s  we h a v e  t h e  c a p a c i t y  to  move fo rw a rd  w ith  v i t a l i t y  an<

v i g o u r  and w i t h o u t  any s e n s e  a t  a l l  o f  b e in g  s e c o n d  b e s t  i n  a n y th in g

A u s t r a l i a  i s  t h e  g r e a t e s t ,  c o u n tr y  i n  t h e  w o r ld . M e h a v e  fre e d o m ,

t h e  o p p o r t u n i t y , t h e  p o t e n t i a l  and t h e  r e s o u r c e s  t h a t  a re

u n e q u a l le d . A u s t r a l i a  i s  a d e v e lo p e d  c o u n try  - b u t  w i t h  a s t i l l

v a s t  u n ta p p e d  p o t e n t i a l .  The b e s t  l i e s  a h e a d  o f  u s .

W hat t h e  G overnm ent i s  a t t e m p t in g  t o  do i s  to  la y  f o u n d a tio n s  w h ere

a l l  t h e  b a s i c  i n b u i l t  f a c t o r s  i n  t h e  economy a r e  x ro rk in g  a s th e y

s h o u ld  b e . We h a v e  d i r e c t e d  o u r e n e r g i e s  to  r e d u c i n g  i n f l a t i o n  b e ca u ;

i n f l a t i o n  w as k i l l i n g  A u s t r a l i a  an d  c r i p p l i n g  o u r c o m p e ti t iv e n e s s

a r o u n d .t h e  w o r l d ; , t o  c u t t i n g , runaw ay g o v ern m en t e x p e n d i t u r e ;  to .

s ta m p in g  t h e  t i d a l  wave o f  wage i n c r e a s e s  t h a t  w e re  p u t t i n g  com panies

o u t o f  b u s i n e s s  an d  c o s t i n g  th o u s a n d s  o f  j o b s ;  an d  t o  r e t u r n i n g  '

b u s i n e s s  a n d  i n d u s t r y  to  a f a i r  and r e a s o n a b l e  p r o f i t  b a s i s  so t h a t

th e y  c o u ld  e x p a n d  i n  new p l a n t  and e q u ip m e n t and p e o p le .

We a r e  a t t e m p t i n g  t o  c r e a t e  t h e  c o n d i t i o n s  w h ere A u s t r a l i a n s  - and

t h o s e  who lo o k  t o  A u s t r a l i a  - w i l l  g ra b  th e  b i t  and a g a in  shoxv

t h e i r  f a i t h  i n  o u r g r e a t  c o u n tr y . I  b e l i e v e  th e  r u n s  a r e  now

on t h e  b o a r d  - p e o p le  can s e e  t h a t  we mean b u s i n e s s  an d  t h a t

we a r e  s u c c e e d in g .

T h a t i s  why i n  many ways t h i s  B u d g e t was a w a t e r s h e d . A few  m onths

b e f o r e  t h e  B u d g e t t h e r e  was a f e e l i n g  i n  some s e c t i o n s  t h a t  th e

G overnm ent m ig h t r e l a x  o u r  s t r o n g  a n t i - i n f l a t i o n  p o l i c i e s .  P e o p le

w e re  w a tc h in g  and w a i t i n g  t o  s e e  i f  o u r r e s o l v e  f a l t e r e d .  I t  d id

n o t  and w i l l  n o t .

T h a t was t h e  s i g n a l  f o r  a  r e s u r g e n c e  i n - c o n f i d e n c e . The s h a r e  m arke

w i t h  n o t  o n ly  t h e  b i g  money i n v e s t o r s ,  b u t  h u n d re d s  o f  th o u s a n d s

o f  A u s t r a l i a n s  i n v e s t i n g  a s h a r e  o f  t h e i r  s a v in g s  - d e m o n s tra te d

s t r o n g  c o n f id e n c e  i n  o u r f u t u r e .  The l a s t  Commonwealth Loan

r e i n f o r c e d  t h a t  f e e l i n g .

T h e re  i s  a new c o n f id e n c e  i n  A u s t r a l i a  to d a y , i n  s p i t e  o f  th e

p ro b le m s y e t  to  be overcom e . . .  a c o n f id e n c e  i n  t h e  c i t i e s ,  and

th r o u g h o u t A u s t r a l i a 's  g r e a t  r u r a l  i n d u s t r i e s  o f  t h e  k in d  t h a t  t h e r e

h a s  n o t  b e e n  f o r  10 o r  15 y e a r s .  And o v e r s e a s , p e o p le  a r e  a g a in

lo o k in g  t o  A u s t r a l i a  f o r  i n v e s tm e n t , f o r  t r a d e  an d  f o r  a s e c u r e

f u t u r e .

By w o rk in g  t o g e t h e r ,  by c o n s t a n t l y  sh o w in g  t h a t  o u r c o u n tr y  can

com pete w i t h  t h e  b e s t ,  by t a k i n g  a  ren e w e d  p r i d e  i n  o u r  oxm a b i l i t i e -

an d  a c h ie v e m e n ts  we w i l l  b u i l d  a n a t i o n  t h a t  w i l l  b e  th e  envy o f

t h e  f r e e  w o r ld  f o r  d e c a d e s to  come.

