EXTRACTS FROM ADDRESS BY THE HON. JOHN HOWARD, M . P . ,

M IN IS T E R  FOR S P E C IA L  TRADE NEGO TIATION S, AND M IN IS T E R

A S S IS T IN G  THE PRIME M IN IS T E R  TO THE THIRD ANNUAL DINNER

OF THE AUSTRALIAN R E T A IL E R S ' ASSOCIATION AT THE SYDNEY

H ILTO N  HOTEL ON MONDAY, 17TH SEPTEMBER,. 1 9 / 7 .

e

YOU W I L L  PERHAPS UNDERSTAND I F  I SAY SOMETHING TONIGHT

IN DEFENCE OF THE ECONOMIC P O L IC IE S  OF THE GOVERNMENT AND PO INT

WITH SOME S A T IS F A C T IO N  TO THOSE AREAS WHERE THERE IS  CLEAR

EVIDENCE OF THOSE P O L IC IE S  SUCCEEDING.

PERHAPS YOU MAY T H IN K  THAT THESE THINGS HAVE BEEN

S A ID  BEFORE. , INDEED THEY HAVE. HOWEVER, THEY BEAR R E P E T IT IO N .

THERE IS  S T I L L  I N S U F F I C I E N T  RECOGNITION IN  THE COMMUNITY OF THE

MAGNITUDE OF THE TASK T H IS  GOVERNMENT IN H E R IT E D  IN  DECEMBER l 9 7 b .

Th e r e a r e s t i l l  t o o m a n y e x p e c t a t i o n s t h a t q u i c k s o l u t i o n s c a n

BE PROVIDED TO OUR ECONOMIC PROBLEMS AND THAT THERE ARE

ALTERNATIVES TO P O L IC IE S  WHICH SEEK ECONOMIC RECOVERY THROUGH

A STEADY AND PE R S IS TEN T ATTACK UPON THE ROOT CAUSES OF I N F L A T IO N .

FOR THREE YEARS Â· ÃÂ· -.,

THE ECONOMIC P O L IC IE S  PURSUED/PRIOR TO DECEMBER 1 9 7 b

WERE CHARACTERISED BY TWO FEATURES.

F I R S T L Y . AN ALMOST UNRESTRAINED. GROWTH IN  GOVERNMENT

SPENDING AND

SECONDLY. THE GOVERNMENT INDUCED WAGE EXPLOSION OF

1 9 7 3  AND 1 9 7 4  WHICH c o s t t h i s  c o u n t r y. so d e a r l y i n  t e r m s o f

IN TE R N A TIO N AL C O M P E T IT IV E N E S S , REDUCED BUSINESS P R O F I T A B I L I T Y

AND REDUCED EMPLOYMENT.

TH IS . GOVERNMENT HAS SUCCEEDED" IN REDUCING THE RATE OF

GROWTH OF COMMONWEALTH GOVERNMENT EXPENDITURE. IN THE LAST

BUDGET GOVERNMENT EXPENDITURE WAS HELD TO ZERO GROWTH IN  REAL

TERMS. A STARK CONTRAST WITH THE BUDGET OF THREE YEARS EARLIER

WHEN GOVERNMENT SPENDING INCREASED BY 46%.

THE RESTRAINT WE HAVE EXERCISED HAS ENABLED A

PROGRESSIVE REDUCTION IN THE AMOUNT OF THE D E F IC IT  WITH ALL

THE CONSEQUENCES FOR INTEREST RATES WHICH"LOWER D E F IC IT S

ULTIM ATELY E N T A IL . .

OUR RESTRAINT HAS ALSO ENABLED IMPLEMENTATION OF

MAJOR TAX REFORMS. OUR TAX CHANGES ARE DESIGNED TO INCREASE

IN CENTIVE AND ARE CONSISTENT WITH THE. GOVERNMENT'S B E L IE F  THAT

THE C IT IZ E N  AND NOT THE GOVERNMENT IS  THE BEST JUDGE OF THE

MANNER IN WHICH THE INCOME HE OR SHE EARNS SHOULD BE SPENT.

THE TAX CHANGES IN  THE RECENT BUDGET PLUS TAX

INDEXATION W IL L  BE A COST TO REVENUE OF $ 1 3 7 1  M IL L IO N  TH IS

F IN A N C IA L  YEAR AND $ 1 8 5 7  M IL L IO N  IN 1 9 7 8 / 7 9

OUR TAX REFORMS REPRESENT A MAJOR ASSAULT UPON

THE IN H I B I T I O N S  OF THE E X IS T IN G  PROGRESSIVE INCOME TAX SCALES.

TAKEN TOGETHER THE COMPANY AND PERSONAL TAX MEASURES OF THE

GOVERNMENT IN THE F IR S T  TWO FULL F IN A N C IA L  YEARS W IL L  HAVE

SAVED TAXPAYERS OVER $ 3 y QUO M IL L IO N ,

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REFORMS OF T H I S  NATURE WOULD NOT HAVE BEEN P O S S I B L E

UN L E S S  T H E GOVERNMENT HAD E X E R C I S E D  R I G I D  R E S T R A I N T  UPON I T S  ;

OWN S P E N D I N G .

*  Ã¢ÂÂ   ' ' *

REFORMS OF T H I S  NATURE WOULD NOT HAVE COME FROM A ;

GOVERNMENT WHI CH B E L I E V E D  T H A T  THE S O L U T I O N  TO A U S T R A L I A N

ECONOMI C PROBLEMS L A Y  I N  S P E N D I N G  EVER I N C R E A S I N G  AMOUNTS OF THE

T A X P A Y E R S '  MONEY.  =

\  .

T H I S .  GOVERNMENT FORMED THE V I E W  WHEN I T  TOOK O F F I C E

T H A T  A U S T R A L I A  COULD NOT AFFORD F U L L  WAGE I N D E X A T I O N .

WE HAVE SO ARGUED BEFORE EVERY WAGE CASE S I N C E  OUR

E L E C T I O N .  WE W I L L  GO ON ARGUING TH AT P R O P O S I T I O N  BECAUSE WE

B E L I E V E  I T  TO BE TRUE AND TH AT AS THE PROT AGO NIST  OF THE

P U B L I C  I N T E R E S T  I T  I S  THE GOVERNMENT'S R E S P O N S I B I L I T Y  I N  WAGE

H E AR IN G S TO DEFEND T H AT  I N T E R E S T  HOWEVER UNPOPULAR SUCH AN

A T T I T U D E  MAY BE I N  SOME QUARTERS.

D E S P I T E  S P E C IO U S  C L A I M S  BY SOME TO THE CONTRARY THE

GOV ERNMENT'S P O L I C Y  ON WAGES I S  E N T I R E L Y  C O N S IS T E N T  W IT H  THE

I N D E X A T I O N .  G U I D E L I N E S .

THE F I R S T  OF THOSE G U I D E L I N E S  C L EA R LY  A D M I T S  OF THE

P O S S I B I L I T Y  THAT ANY PARTY TO A HE AR IN G  M IG H T  ARGUE THAT I N

CIRCUMSTANCES THEN P R E V A I L I N G  F U L L  WAGE I N D E X A T I O N  OUGHT NOT A P P L Y .

T H IS . GOVERNMENT DOES B E L IE V E  THAT THERE IS A

DIRECT L IN K  BETWEEN WAGE INCREASES AND. EMPLOYMENT LEVELS

AND. THAT THE WAGE INCREASES OF RECENT YEARS HAVE PLAYED A

MAJOR PART IN  PRODUCING THE UNACCEPTABLY HIGH LEVELS OF

UNEMPLOYMENT WE CURRENTLY EXPERIENCE.' "

T H IS , g o v e r n m e n t ' s P O L IC IE S  HAVE PRODUCED A  v . ’

S IG N IF IC A N T  REDUCTION IN THE LEVEL OF IN F L A T IO N . I T  HAS

PRODUCED AN INCREASE IN  BUSINESS P R O F IT A B IL IT Y  FROM THE

DEPLORABLE LEVELS OF TWO YEARS AGO. . . . . .

THE D E C IS IO N  TO ALLOW THE FURTHER M INING  AND EXPORT

OF URANIUM WAS TAKEN BY THE GOVERNMENT AFTER THE MOST

P A IN STA KIN G  AND THOROUGH EXAMINATION OF THE ISSUES INVOLVED.

I T  IS AS WELL TO REMIND OURSELVES OF THE B A S IS  OF

THAT D E C IS IO N . IN  H IS  STATEMENT TO PARLIAMENT ON 25TH AUGUST

1 9 7 7 ,  THE PRIME M IN IS T E R  SUMMARISED THE B A S IS  OF THE

g o v e r n m e n t ' s d e c i s i o n  a s f o l l o w s : -  "

" t h e g o v e r n m e n t  h a s t a k e n  i t s  d e c i s i o n

WITH A DEEP SENSE OF INTERNATIONAL

R E S P O N S IB IL IT Y . I VENTURE TO SAY THAT

WERE I T  NOT FOR THAT SENSE OF R E S P O N S IB IL IT Y ,

WERE I T  NOT FOR OUR WISH TO STRENGTHEN

A U S T R A L IA 'S  VOICE IN THE MOVES AGAINST THE

PROLIFERATIO N AGAINST NUCLEAR WEAPONS, WERE

I T  NOT FOR OUR O BLIG A TIO N  TO PROVIDE ENERGY

TO AN ENERGY D E F IC IE N T  WORLD WE WOULD NOT

HAVE DECIDED TO EXPORT URANIUM. COMMERCIAL

CONSIDERATIONS WERE NOT AND ARE NOT THE

DOMINANT MOTIVE IN OUR D E C IS IO N . IN

THEMSELVES THEY WOULD NOT HAVE BEEN S U F F IC IE N T " .

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I T  DOES US W EL L  TO REMEMBER T H A T  WE DO L I V E  I N  A ,

WORLD WHOSE ENERGY RESERVES ARE R A P I D L Y  D E P L E T I N G  W I T H  A L L

T H E  CONSEQUENCES FOR L I V I N G  STANDARDS AND FUTURE WORLD

S T A B I L I T Y  WH I C H T H A T  E N T A I L S .

I T  WOULD BE AN ODD C O N T R I B U T I O N  TO THE FUTURE

W E L L - B E I N G  OF THE WORLD FOR A U S T R A L I A  T O - D E N Y  T H A T WORLD

ACCESS -  ON PROPER C O N D I T I O N S  -  TO OUR U R AN I U M  RE S E RV E S.

’ '  ' "  l

A U S T R A L I A  HA S A D O P T E D  T H E  MOS T  S T R I N G E N T  S A F E G U A R D S

Y E T  A D O P T E D  B Y  A N Y  C O U N T R Y  FOR T H E  E X P O R T  OF I T S  U R A N I U M .

P R O P E R  A C C O U N T  HA S B E E N  T A K E N  FOR T H E  W E L F A R E  OF A B O R I G I N E S  A N D

T H E  E N V I R O N M E N T  W H I C H  W I L L  B E  A F F E C T E D  B Y  F U T U R E  M I N I N G .  NOT

E V E N  OUR O P P O N E N T S  H A V E  S E R I O U S L Y  C H A L L E N G E D  T H I S ,

H O W E V E R ,  ONE OF OUR O P P O N E N T S  -  T H E  D E P U T Y  O P P O S I T I O N

L E A D E R ,  M R .  UREN -  HA S C R I T I C I S E D  T H E  USE OF T H E  A T O M I C  E NERGY

A C T .

HE S A Y S  T H E R E  A R E  S E R I O U S  I M P L I C A T I O N S  FOR W O R K E R S ,

T R A D E  U N I O N S  A N D  T H E  G E N E R A L  P U B L I C  I N  T H E  G O V E R N M E N T ' S  D E C I S I O N

T O  USE T H E  A T O M I C  E N E R GY  A C T  A S  T H E  B A S I S  FOR M I N I N G  A T  R A N G E R .

M R .  UREN A P P A R E N T L Y  D I D  NOT  H O L D  T H O S E  V I E W S  I N

1 9 7 4  A N D  1 9 7 5  WHEN HE WAS A  M I N I S T E R  I N  T H E  W H I T L A M  G O V E R N M E N T ,

OR I F  HE D I D  HE R E M A I N E D  C O M P L E T E L Y  S I L E N T  A B O U T  T H E M .

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THE A T O M I C  ENERGY A C T  WAS USED BY THE W H I T L A M

GOVERNMENT AS A B A S I S  FOR THE AGREEMENT REACHED BY T H A T

GOVERNMENT W I T H  THE RANGER C O M P A N I E S ,

T H I S  GOVERNMENT PROPOSES TO HONOUR T H A T  AGREEMENT.

. I T  I S  WORTH R E C A L L I N G  WHAT THE THEN M I N I S T E R  FOR

M I N E R A L S  AND E N ER G Y ,  T H E  L A T E  MR.  CONNOR,  S A I D  ABOUT THE

A T O M I C  ENERGY A C T I N  1 9 7 5 .  HE J U S T I F I E D  I T S  USE I N  RESPECT

OF THE RANGER P R OJ E CT  AND S A I D  I T  WOULD BE USED TO THE F U L L .

HOW S E R I O U S L Y  CAN THE A U S T R A L I A N  P U B L I C  TAKE THE

V I E W S  OF A MAN WHO, I N  1 9 7 7 , ,  SAYS A P A R T I C U L A R  ACT OF THE

P A R L I A M E N T  D E N I E S  B A S I C  C I V I L  R I G H T S  AND MAKES OUTLAWS OF

PEOPLE WHO DO NOT F U L L Y  COMPLY W I T H  T H E  M I N I N G  A N D . E X P O R T

OF U R A N I U M  Y E T  R E M A I N E D  S I L E N T  I N  1 9 7 5  WHEN H I S  M I N I S T E R I A L

COLLEAGUE T OL D THE P A R L I A M E N T  T H A T  H I S  GOVERNMENT ( T H A T  I S

MR. U R E N ' S  GOVERNMENT)  WOULD USE THE A C T TO THE F U L L  AND

T H A T  SUCH USE WAS E N T I R E L Y  J U S T I F I A B L E  AND PROPER.

THE GOVERNMENT B E L I E V E S ,  AS D I D  I T S  PR EDECESSOR,

T H A T  THE A T O M I C  ENERGY A C T  P R O V I D E S  AN A P P R O P R I A T E  B A S I S  FOR

M I N I N G  O P E R A T I O N S  A T  RANGER.

ALTHOUGH THE FOX INQUIRY EXPRESSED RESERVATIONS ABOUT

USING THE ATOMIC ENERGY ACT FOR THE ISSUE OF L I N I N G  T IT L E  I T  S A ID

IT S  RESERVATIONS ABOUT THE ATOMIC ENERGY ACT AS A M INING  LAW WOULD

HAVE"LESS FORCE I F  THE URANIUM ADVISORY COUNCIL RECOMMENDATION

OF THE INQ UIRY WERE ADOPTED. THE GOVERNMENT HAS ADOPTED T H IS

RECOMMENDATION AND W IL L  ESTABLISH AN ADVISORY COUNCIL. . . . . .

I SHALL'SHORTLY BE GOING TO EUROPE FOR THE F IR S T

TIM E AS M IN IS T E R  FOR S P E C IA L TRADE NEGO TIATIONS, '

MY B R IE F  IS  TO IMPROVE THE TRADING RELATIONSHIP

BETWEEN AU STR ALIA AND THE MEMBER COUNTRIES OF THE EUROPEAN

ECONOMIC COMMUNITY.

AT STAKE IS A .TR AD IN G  RE LATIO N S H IP WITH A. GROUP OF

COUNTRIES WHICH COMPRISE 2 6 0  M IL L IO N  PEOPLE AND ACCOUNT FOR

W o  OF TOTAL WORLD TR ADE.

THE D I F F I C U L T I E S  INVOLVED SHOULD NOT BE UNDER-ESTIMATED

NOR SHOULD THERE BE FALSE HOPES OF QUICK IMPROVEMENTS. .

THE COMMON AGRICULTURAL PO LIC Y OF THE E . E . C . WHICH IS

THE P R IN C IP A L  CAUSE OF OUR D IS S A T IS F A C T IO N  AND WHICH HAS SO

SEVERELY AFFECTED OUR PRIMARY INDUSTRY EXPORTS IS NO ORDINARY

FORM OF PROTECTION.

I T  IS  NOT MERELY DESIGNED TO PRESERVE A FAVOURABLE

MARKET SHARE. FOR DOMESTIC PRODUCERS. IN  MOST CASES I T  AIMS TO

COMPLETELY PRECLUDE IMPORTS EXCEPT WHERE DOMESTIC SHORTAGES OCCUR.

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-  8  -

. THE NATURE OF THE C . A . P .  NEEDS TO BE UNDERSTOOD WHEN

QUICK, BUT INCORRECT, COMPARISONS ARE DRAWN BETWEEN ITS

PROTECTIVE PROVISIONS AND LEVELS OF PROTECTIONS WHICH OPERATE

TO 'ÃÂÃÂÃÂ B E N E FIT OF AREAS OF OUR OWN MANUFACTURING INDUSTRY.

THERE IS A S IG N IF IC A N T  DIFFERENCE BETWEEN A POLICY

WHICH AIMS TO PRECLUDE IMPORTS EXCEPT IN CASES OF SHORTAGE AND

A POLICY WHICH W HILST M A IN TA IN IN G  A SHARE OF A DOMESTIC MARKET

FOR LOCAL INDUSTRY DOES ADMIT OF S IG N IFIC AN C E MARKET ACCESS

FOR IMPORTS.

I B E LIE V E  T H IS  D IS T IN C T IO N  SHOULD BE CLEARLY UNDERSTOOD.

IN MY VIEW IN S U F F IC IE N T  CREDENCE HAS BEEN GIVEN TO THE EXTENT

TO WHICH AUSTRALIA HAS MAINTAINED REAL MARKET ACCESS FOR

IMPORTS EVEN IN THEIR EMPLOYMENT S E N S IT IV E  AREAS.

OVER THE LAST F IV E  YEARS IMPORTS FROM ASEAN COUNTRIES

TO AUSTRALIA HAVE INCREASED BY APPROXIMATELY 196%, MUCH OF

TH IS HAS OCCURRED IN AREAS WHICH ARE EMPLOYMENT S E N S IT IV E  SO

FAR AS AUSTRALIAN INDUSTRY IS CONCERNED..

AS I HAVE S A ID  ON OTHER OCCASIONS WE SHOULD NOT AS

A NATION BE APOLOGETIC ABOUT A POLICY WHICH PRESERVES A REAL

SHARE OF. THE MARKET FOR IMPORTS WHILST AT THE SAME TIME

PROVIDES PROPER PROTECTION FOR AUSTRALIAN MANUFACTURING INDUSTRY

WHICH OPERATES UNDER THE INHERENT D IF F IC U L T IE S  OF A SMALL

DOMESTIC MARKET.

