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Business has no confidence in the government

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The capital expenditure figures released in Canberra today confirm that Mr Keating's recession just keeps rolling along.

The figures from the Bureau of Statistics show that the fall in private investment in the December quarter 1990 was the largest quarterly investment drop since 1979.

The bureau also records that investment in the coming financial year is likely to fall by 13 per cent. The last thing Australia needs to address our significant current account problems is a continued decline in the level of private investment.

The revised drop of 10 per cent (seasonally adjusted) in new capital expenditure between the September and December quarters last year highlights the fact that the business community has lost all confidence in Treasurer Keating and his policies.

No-one believes Treasurer Keating's stories about strong investment - not even his colleagues.

Employment Minister, John Dawkins, noted on the weekend that:

"The proportion of investment going to fund traded

activities appears to have been declining. This will have to be reversed."

The Cabinet in - fighting that's been revealed this week

highlights a lack of consensus in government ranks on how to deal with Australia's massive economic problems.

And Prime Minister Hawke should take heed of his own advice during the last election campaign:

"If you can't govern your party, you can't govern Australia."

CONTACT: DAVID TURNBULL 06 277 4277 D44/91