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Government get off back of free enterprises



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THE HON MICHAEL HODGMAN QC MP

SHADOW MINISTER FOR HOUSING AND CONSTRUCTION

"Governments must get off the back of Free Enterprise and let Management lead Australia into the 21st Century," the Federal Shadow Minister for Housing and Construction, Mr Michael Hodgroan MHR said in Hobart today.

Mr Hodgman was Guest Speaker at a Luncheon arranged by the Australian Institute of Management Tasmania. ,

"It is Free Enterprise - not Politicians who will make Australia great. It is therefore absolutely critical that Australian Management is attuned to the initiatives and directions of the 21st Century - which is only 15 years

away," Mr Hodgman said.

Describing Australian Management as 'arguably the best in the world today', Mr Hodgman said that of all the qualities Free Enterprise needed most at the present time, the most important was Leadership.

. . "As recently as two generations ago, Management in Australia was still based on 'working through the system'.

In many instances young people joined the family Firm and, predictably, worked their way to the top. Excepting Entrepreneurs who successfully engaged in Corporate take-overs most young Australian Executives had little chance of reaching

positions of authority until they had virtually achieved middle-age," Mr Hodgman said. . .

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"Thankfully this is all now changing, with the recognition that there are two distinct areas of Management expertise. In the United States big Corporations are training young people in two separate streams. The first stream is

that which relates to the ordinary functions of running that particular business. The trainee becomes expert in all the component functions of the Corporation and, as he or she becomes older, specialises in one particular area and ultimately reaches the pinnacle. That is why a large Corporation like the Hughes Aircraft Company has as many as 12 Vice-Presidents , each one responsible for a particular segment of the Corporation's operations. The second stream, which in many ways will be ultimately more important than the

first, is in the training of Leaders - whose sole function is to formulate Policy directions for the Corporation," Mr Hodgman said.

Mr Hodgman said that those being trained for Leadership were developing a foresight and an initiative 1 well in advance of their years'.

"A recent example of this new trend in Management being applied in Australia was brought home very forcibly to me Φ last week when I travelled from Sydney to Kembla Grange with the Executive General Manager of Tubemakers of Australia

Limited Steel Pipe Division, Mr Alan R. Ambler. Alan informed me that the initiative for Tubemakers of Australia to become involved in the $50 million proposed Alice Springs- Darwin Gas Pipe Link - utilising the enormous resources Amadeus Basin - came from a 25 year old Executive who challenged

the Northern Territory Government's decision to proceed with Coal-fired Electricity Generation. Only last year, after an extensive Inquiry the Northern Territory Government decided

that all future Electricity Generation was to be Coal-fired.

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This young Executive challenged the rationale of the decision and, almost single-handedly persuaded the Northern Territory Government to change its mind and to move towards a massive Gas-fired Electricity Generation Programme, which in turn

led to Tubemakers of Australia gaining a $50 million contract to provide the Pipeline. What is more important is that this $50 million job is now likely to lead to a further $150 million job which will constitute a single link in the proposed National Gas Pipeline Grid," Mr Hodgman said.

"I return to my original point - that Governments, must get off the back of Free Enterprise, if Australia's Management is to have any chance of achieving its full potential. Every hour wasted because of Government interference and Bureaucratic Red-Tape is an hour lost to Free Enterprise. Every dollar spent in Government Taxes, Charges, Regulations and Fees

is a dollar lost in the fight to ensure that Australia reaches its full potential. What this country wants - and desperately wants right now - is Smaller Government, less Red-Tape and Lower Taxation. Time is running against us and already

valuable opportunities have been lost. Australian Management, truly holds the key to the future of this Nation, but it will have no chance at all of opening the door to success, whilst Governments (Federal, State and Local) continue to scramble on its back and impede its progress. Now is the time for decision - today! Tomorrow will be too late." Mr Hodgman said.

Hobart, 6 June, 1985.