J|. AUSTRALIA,,/*Â·

PRIME MINISTER

FOR PRESS 20 AUGUST 1978

ELECTORATE TALK

The Government's Budget is the right Budget for Australia -  the only Budget for Australia. The Budget had one major  objective - to build on the foundations already set for  the. long term economic stability and prosperity of Australia. We met that objective without quibble, without pretence.

That Budget has been exceptionally well-received by  Australians. I have spoken to many Australians over the last  few days - and almost without exception they said we had  produced a good Budget.

Of course there are moans about cigarette prices, and beer  prices and petrol prices - but people understand why we had  to take these decisions. They understand that there is  no easy way out of economic problems. There are still no

quick fixes.

The people I spoke with - farmers, factory workers, Australians  from all walks of life - all recognised that we had to keep  on with the firm policies and with our policy of restraint.

Even though this Budget had some so-called "unpopular" news,  people have received it far better, I believe, than our  previous two Budgets. That says a great deal about the  intelligence, commonsense and fair-mindedness of Australians.

I don't believe the kind of newspaper headlines we saw after  the Budget reflect in any way the real feeling and real  spirit in Australia.

One of the reasons the Budget has been accepted is that  Australians can see that inflation is being beaten - a 5 percent  inflation rate within ten months is a reality.

Australians remember all too vividly that when we took office  inflation was in excess of 15 or 16 percent. That was hitting  hard and direct at the needy, the poor, the disadvantaged, the  pensioner, the farmer, the family - and business.

Our policies have slashed inflation and have created conditions  where interest rates can continue to fall. As interest rates  keep coming down - in a steady and in a sustainable way -  that gets to the heart of Australian life.

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The level of interest rates affects every Australian,   every buying decision. Lower interest rates really benefit  young couples buying a home or improving an existing home;  it helps farmers who rely so heavily on borrowed money to

finance expensive equipment;, it helps someone buying a new  car or borrowing money from a bank or a building society  for any reason at all; and it helps business,  large and small.

Reducing inflation and reducing interest rates will do more  to help every Australian than any other act of Government. In fact the real stimulus to the Australian economy will come  from lower inflation and lower interest rates - and not from  some Government induced spending programme that pumps money  out of evereturning printing presses.

Of course lower inflation and lower interest rates will make  our great industries more competitive in Australia and in  world markets. You all know what this will mean for jobs,  for confidence and for growth.

Significantly, of course, it means that as a resource-rich  nation we will become a favoured nation for investment.  Countries will be looking to Australia with our lower inflation  and with a sound and stable economy for years ahead.

Australia now has a high reputation in the great finance  markets of the world. Countries know we are pursuing the right  policies, they know we mean business.

Countries look also to Australia not only as a nation with a  sound economy but as a country with continuing policitical  stability. Investors still remember the damage caused — to  Australian industry and jobs— by the political instability of

the three Labor years.

They now look to Australia with sound, responsible and sensible  economic policies and to an Australia with stable, united and  determined Government. We will not fail on either account.

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