P R IM E  M IN IS T E R

FOR MEDIA .  .  APRIL 18 1982

ELECTORATE TALK

One of our important responsibilities is to present a balanced,  realistic view of where our economy stands, and of.the prospects  which lie ahead. People have a right to expect that the various  elements bearing on Australia's economic position will be

explained in a rational way, so that the whole picture emerges  and can be understood. Balance, stability ^ they are the keys  to keeping Australia's economy on course, not only in the  public presentation of the position but also in the Substance  of responsible economic management. .

Australia does not function in isolation. When the economies  of the major industrialised nations strike trouble,  then that  is reflected in Australia. We are affected by the slackening  demand for our products in those countries.  We are affected  by the levels of interest rates in Europe and America. The unhappy  truth is that the economy of several of these major countries

is not growing.  Not only that, but in some instances, they are  actually producing less.

There are many economic indicators, but I think the plight  of the United States' motor car industry illustrates the  position quite dramatically. Four years ago, the United States  produced 15 million vehicles. Last year,  they produced half that

- seven and a half million. .  Imagine the impact of that change  on jobs, people's spending, the suppliers of metals, and so on.

In the face of a world economic downturn, Australia has done  comparatively well. Our economy has grown faster than the  average rate of other major industrialised countries in  recent years. Business investment growth in Australia was  at its highest for 30 years in the last financial year. After-tax real incomes have been rising in Australia and

more jobs have been created.  In the three years to last  February, almost 380,000 new jobs were created in Australia.

We know that we can succeed in Australia against world trends. We cannot avoid being influenced by those trends,  but there  is much we can do ourselves to meet the.challenge of keeping  Australia's economy on course in the face of difficult international

conditions. For the Government's part, it is committed to  providing stable,  reliable government,  the kind of government  that inspires confidence among business people, large and small,   in Australia and overseas.  That is fundamental.

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At the same time, the Government.'-must be sufficiently flexible  to respond to changing economic circumstances internationally,  and at home. As a nation,  it is vitally important that we  recognise ourselves as an integral part of the world market  place in which we must compete to sell our wares. We must be .

reliable suppliers of quality goods at the right price.  At a  time when the market for so many goods is very tight indeed,  we are jeopardising our competitiveness. Put bluntly, this  is a time for containing costs. This is not a time for

shortening working hours. Nor is it a time for substantial  wage increases when in some other countries people are actually  accepting reduced wages in order to preserve jobs. This is  not a time for talking the economy up or talking it down.

This is a time for sound economic management,  for stability  and reliability. .  .  .

It is a time to recognise our achievements in the face of  a world downturn and to accept the challenge of keeping . Australia competitive in the difficult period ahead. .

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