-I). AUStRALIA,,^

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

FOR PRESS 20 FEBRUARY 1977

Embargoed until 1900 hours 20.2.77

> / ELECTORATE TALK

The Government enters 1977 strongly determined to break the  back of inflation - and determined to reduce unemployment.

Our fight against inflation is in reality a fight against  unemployment.  Inflation must be conquered - and the real  productive areas in the community given the opportunity and  confidence to expand - before Australia sees a lasting and

sustained reduction in the numbers of those seeking work. If we do not beat inflation - irrespective of any temporary  action we might take in "make work" schemes - Australia will  continue with a deep-seated unemployment problem.

Today, our country has too many people in dole queues,  too  many people unable to find jobs. This situation has not  occurred overnight.  It has been an escalating problem in  Australia since the Labor Government took office in December

1972. At that time unemployment was around 137,000 - or 2.4%  of the workforce. Inflation had been funning for 10 years -  as measured by the CPI - at an annual rate of 3.57=. Three  years later, when Labor were voted out,  unemployment was  around 329,000 - or 5.4% of the workforce. Inflation had

lept to more than 16% in Labor's last year.

What caused this dramatic increase in unemployment and  inflation? Three sets of official figures provide a telling  answer. When Labor came to office, the budget deficit -  that is, the difference between what a Government receives  in taxes and what it spends on services like pensions, roads,   etc. - was $774 million. When it left office, the deficit  was rapidly heading for a staggering, and unprecedented

$4,000 million. Also, during the three Labor years, average  wages rose by 15.2%, 28% and 12.8% respectively, while Federal  Government expenditure rose by 22.6%, 33.1% and 37.97=.  Australia was living beyond her means. These figures do  not lie. They prove beyond doubt that Australia's high

unemployment is a direct legacy of A.L.P. policies. We are  now paying and suffering because of those policies.

/The

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The grim situation we inherited 14 months ago could accurately -be likened to a slippery slide - easy to slide further down,  difficult to stop, and even harder to climb back up. There is  no doubt that had the Labor policies of big spending continued -

the policies they still preach - then we would be now further  down the slide, with little or no prospect of recovery. The  Government has made a considerable achievement in holding  unemployment at present levels and stopping further deterioration.

What was Labor's cure for the problem? They certainly didn't  stop, or even try to stop inflation. In fact, they still don't  mean to stop inflation. They introduced a regional employment  development (RED) scheme - a temporary make-work scheme. But

costs got out of hand, so they abolished this scheme themselves. Yet today, they call for its re-introduction. They have nothing  new to offer - only tired, old and failed policies.

In contrast, the Liberal/N.C.P. Government has not deserted the  unemployed. We have moved quickly and creatively to introduce a  number of logically planned manpower policies. We've not just  skimmed the surface of the problem but have taken responsible

short and long term action.

Let me briefly outline some of our measures. We successfully  re-organised the N.E.A.T. schema When we came to Government, 7,500 were in training under the scheme. Today, almost double that number are in training under N.E.A.T., and most of those are getting in-plant training while engaged in productive employment

We introduced and later improved a special youth employment training  programme. Basically, it pays $59 weekly per person to employers  providing 6 months on-the-job training. Today, more than 4,000  people are being trained under the programme.

We introduced a widely acclaimed Community Youth Support Scheme. It encourages special community committees or existing youth  organisations to run counselling and support programmes for  young people out of work.

Last month we announced the Commonwealth Rebate for Apprentice  Full-Time Training (C.R.A.F.T.) The scheme encourages early  technical training and will help overcome the shortage of  skilled tradesmen. It is estimated that C.R.A.F.T. will boost  the apprentice intake by 12,000 within two years.

Other measures taken by the Government include a relocation  assistance scheme, an inquiry into the Commonwealth Employment  Service, and our full support of the National Training Council.

Finally, one of our most important initiatives in this whole area  was the setting up of a long tern inquiry into the relationship  between education and training. This will review possible  developments in the link between the education system and the

changing needs of the labour market and other matters up to the  year 2,000.

/Clearly,

Clearly, the Government has recognised the plight of the  unemployed. We've done more than talk about the problem -  we have put words into action. We have acted to relieve  immediate hardship, particularly amongst the young,  and we  have looked at the problem on a long term basis.

This Government is committed to providing jobs for all  Australians who want to work. We will only achieve this  goal - on a long term and lasting basis - by beating  inflation. There is no other way. Our commitment to  beating inflation - as we will continue to demonstrate  very clearly - is utterly absolute.

