EMBARGO: 7.00 p.m.

PRIME MINISTER

FOR PRESS 30 APRIL 1978

ELECTORATE TALK

This week's announcement of an increase of only 1.3 percent in  the Consumer Price Index is more welcome economic news for Australia.  It is certainly good news for business, housewives, farmers - all  sections of the community.

This quarter's increase in the CPI indicates that we are in the  best position for over five years to overcome the evil of inflation.  The figure confirms that Australia's inflation rate is running at  about 8 percent. This is a significant improvement.

We are now down to about the levels of our overseas trading  partners - this can only benefit our export and manufacturing  industries as it will improve their competitive position. Clearly, this figure again shows that our economic policies -

consistently applied from day one - have been the right policies  for Australia.

Australia - any country - will always have economic problems. They are a fact of life in a changing world. We have shown that  Australia now has a government able to competently tackle the  problems and overcome them. We have shown that we will not run away

from problems, and pretend they do not exist. We have spelt them  out in plain language and set a firm course to overcome them. We have been following that course since late 1975 - I think with  some success.

There is simply no realistic alternative. The business community -  for one - has given us its support as it comes to recognise that  there are no simple and speedy solutions to the fundamental  imbalances with which our economy is still beset. We have never  stopped preaching firm control of government spending,finely  balanced monetary policies and wage restraint.

Of course, this 1.3 percent figure is not the end of the line in  our fight against inflation. The Government is well aware that  inflation must continue to fall before we can have full economic  recovery, with job opportunities for all Australians who want to.work  We have achieved notable success in our battle against inflation -  but much work remains to be done.

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With o u r  for greater business investment by both Australian and overseas  companies. It is encouraging to see this development taking place. The conditions are also steadily improving for young Australians  seeking to buy and build their own homes. I know that the high  monthly repayments have put homes out of the reach of many  thousands of young couples. That has begun to change and as  inflation keeps falling the conditions will be established for a  further reduction which will assist families everywhere. The Government will continue with its economic policies. We will  not relax and not be side-trached. Any drift away from firm,  responsible economic policies designed to reduce inflation and  encourage investment and activity would seriously damage confidence  both of business and consumers. That would, set back economic  recovery. The Government is determined to continue with its firm and responsib  economic policies. We utterly reject any course that risks the  hard won gains already made.

for greater business investment by both Australian and overseas  companies. It is encouraging to see this development taking place.

The conditions are also steadily improving for young Australians  seeking to buy and build their own homes. I know that the high  monthly repayments have put homes out of the reach of many  thousands of young couples. That has begun to change and as

inflation keeps falling the conditions will be established for a  further reduction which will assist families everywhere.

The Government will continue with its economic policies. We will  not relax and not be side-trached. Any drift away from firm,  responsible economic policies designed to reduce inflation and  encourage investment and activity would seriously damage confidence  both of business and consumers. That would, set back economic  recovery.

The Government is determined to continue with its firm and responsib  economic policies. We utterly reject any course that risks the  hard won gains already made.

