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Keating slammed over irresponsible remark



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/1EDIA RELEASE

JOHN MOORE MP SHADOW M INISTER FOR

BUSINESS, PRIVATISATION AND CONSUMER AFFAIRS

KEATING SLAMMED OVER IRRESPONSIBLE REMARK

The Treasurer's extraordinary statement playing down the significance of corporate failures was greeted with the laughter and derision it deserved", said John Moore, Opposition Business Spokesman.

Mr Keating told the Australian Business Economists Conference in Sydney recent collapses of high profile Australian companies were not a bad thing because it

reduced our international indebtedness.

Mr Moore said this was the most outrageous statement for a politician in charge of our economy and smacked of irresponsibility.

"Under no circumstances are these failures good for Australia, said Mr Moore.

"Ultimately Australian corporations could be shunned

from international capital markets if lenders take the

Treasurer's cavalier approach seriously.

"Using a one-dimensional high interest rate policy to lower demarfd means business failures will be the order

of the day.

"Qintex, Ariadne, Rothwells, Hookers are the early

symptoms of an unhealthy trend.

COMMONWEALTH PARLIAMENTARY LIBRARY MICAH

IN Q U IR IE S CANBERRA (062)774133 BRISBANE (07)3710644

"The Treasurer appears oblivious to the plight of corporate Australia.

"Last night's statement highlights his ignorance and irresponsibility when dealing with corporate Australia.

"Corporate collapses result in:-

. rapid decline in business investment;

. further downgrading of Australian companies and the

Australian economy; . greater difficulty and expense in raising capital; . increased unemployment; . exacerbated current account problems by

reducing export earnings.

"This Government sits on it hands refusing to make the

structural changes to improve the other side of the current account coin - the low level of exports.

"It's little wonder that we've become the known as the

banana republic of the South Pacific.

"Our international reputation has been savaged in the USA and Japan by a string of recent collapses.

"Furthermore, Moore said the Treasurer's statement

openly encourages borrowers to treat their debt obligations lightly and without responsibility.

5 December, 1989