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E M B A R G O E D A G A I N S T D E L I V E R Y 4 P M SOUTH A U S T R A L I A N E XP ORTE RS'

HON. T O M M C V E I G H M.P. O P P O S I T I O N S P O K E S M A N ON T R A D E

C O U N C I L

IT IS T I M E T O STO P S T A N D I N G S T I L L

P E O P L E HER E T O D A Y DO NOT HAV E TO BE TOLD T H A T U N L E S S WE

R E V E R S E O U R D E C L I N I N G COM PET I T I V E N E S S , T H E C O N S E Q U E N C E S A R E G O I N G TO B E DIS ASTROUS. , .

T H E R E A R E D E E P - S E A T E D S T R U C T U R A L R I G I D I T I E S AND C O S T P R O B L E M S F AC ING A U S T R A L I A N EXPORTERS. HOWEVER, EVE N Y O U R P R E S E N C E HER E T O D A Y INDICATES P O T E N T I A L EXISTS FOR A U S T R A L I A TO PUL L ITSELF O U T OF THE P O L I T I C A L AND E C O N O M I C Q U A G M I R E INTO WHICH,

IT HAS SLID.

, W I T H . T H E . R I G H T P OL ICIE S AND WITH A D Y N A M I C G O V E R N M E N T THIS C O U N T R Y CAN REGAIN IT P OS ITIO N AS O N E OF THE G R E A T E R TRA DING N A T I O N S OF THE WORLD. IT R E Q U I R E S A. R ET URN TO REAL

FREE E N T E R P R I S E P O L ICIE S./

2

FRE E E N T E R P R I S E POLICIES. -

IT WIL L R E Q U I R E A G O V E R N M E N T TO OPE N UP O P P O R T U N I T I E S TO E N T R E P R E N E U R S SUCH AS Y O U R S E L V E S - P E O P L E WHO WAN T TO HAV E A GO

- WHO W A N T TO W O R K

- WHO W A N T TO ACHIEVE,

A N D FOR W H O M C O M P E T I T I O N IS A CHALLENGE, NOT A THREAT.

A C E N T U R Y AGO A U S T R A L I A W A S T H E RICHEST- C O U N T R Y IN T H E WORLD. R I G H T UP TO T H E E A R L Y 1 9 6 0 's WE W E R E NEA R T H E TOP OF THE WORLD G R O W T H LEAGUE. H O W E V E R T H E R E IS A WORM, A V E R Y LARGE WORM, E AT ING A W A Y A T T H E V I A B I L I T Y OF T H A T LIFESTYLE. IN PART, T H A T

WOR M IS OUR /

3

W O R M IS O U R A T T I T U D E T O W A R D S W O R K A N D THE O U T S I D E WORLD.

WE SEEM TO LAC K T H E V I S I O N OR THE W I L L P O W E R TO END T H E D O W N W A R D SPIRAL.

T H E R E IS A L A C K OF R E A L I S M A B O U T O U R INT ERN A T I O N A L REL ATI O N S H I P S . A N INE SC A P A B L E L E A NING T O W A R D S THE ILLUSIONS OF T H E P A S T WHI CH P ER VADE S A U S T R A L I A ' S E C O NOMI C INITIATIVES.

T H E R E ' S A C O N T E M P T I B L E S E L F - P I T Y W H I C H RET ARDS E F F O R T S TO B R E A K DOW N T H E B A R R I E R S TO GROWING, P R A C T I C A L T R A D E RELATIONS.

TH I S T R A V E S T Y OF A F O R WARD -THIN KING , G R O WING E C O N O M Y M U S T

S T O P NOW./

4

STO P NOW. IT IS T I M E TO E N D T H E SMOKO, T I M E TO STO P STANDING STILL. IT IS T I M E WE S T O P P E D W A L L O W I N G IN A S E L F - I M P O S E D A C C E L E R A T I N G C O S T S T R U C T U R E AND S T A RTED P U R SUIN G G RO WTH AND D E V E L O P M E N T - ACT IVEL Y.

W H E N IT COM ES TO T H E I N T E R N A T I O N A L M A R K E T P L A C E WE M U S T COM PETE ON T H E I R T E R M S IF WE E X P E C T TO WIN.

A U S T R A L I A M U S T C O M P E T E ON PRICE, Q U A L I T Y A N D A B I L I T Y T O S U P P L Y ON SCHEDULE, LIK E E V E R Y O N E ELSE. T H E R E IS NO EASY R I D E AND F U T U R E G A I N S ON T H E W O R L D M A R K E T M U S T B E E AR NED BY A D E T E R M I N E D E F F O R T BY G O V ERNM ENT, INDUSTRY A N D T H E UNIONS.

WE NEED TO /

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WE NEED TO R E S T R U C T U R E FOR ECO NOMI C D E V E L O P M E N T IN O R D E R TO B E T T E R E X P O L I T A U S T R A L I A ' S M A J O R E C O N O M I C A N D E M P L O Y M E N T OPP ORTU NITIE S. T H E G O V E R N M E N T HAS M A D E A" C O M M I T M E N T TO R E S T R U C T U R I N G INDUSTRY. BUT, WITH T H E E X C E P T I O N OF T H E MOTOR

CAR A N D S T E E L INDUSTRIES, THE G O V E R N M E N T HAS N O T A C K N O W L E D G E D TH A T INDUSTRY P O L I C Y IS M O R E T H A N S Y S T E M A T I C A D - H O C E R Y TO T H O S E IND USTR IES W H I C H C L A I M TO BE IN NEED.

I A M I N C R E A S I N G L Y C O N C E R N E D WIT H THE F E D E R A L G O V E R N M E N T ' S F A I L U R E TO I M P LEME NT INITIAT IVES W H I C H W I L L I N C R E A S E T H E E X P O R T S E C T O R ' S C A P A C I T Y TO A G G R E S S I V E L Y P U R S U E I N T E R N A T I O N A L E X P O R T MARKETS. FOR THE GOO DS PRO DUCE D BY E V E R Y R E G I O N IN THIS ■ COUNTRY, BE THE Y RE S O U R C E PRODUCTS, M A N U F A C T U R E D G O O D S OR

SERVICES. T H E /

6

SERVICES.

THE M I N I S T E R FOR TRADE, M R DAWKINS, SAYS THE RE A R E TWO P R I N C I P A L R E A S O N S F O R A U S T R A L I A ' S R E L A T I V E L Y POOR T R A D E PERFORMANCE, D E C L I N I N G W O R L D D E M A N D FOR P R I MARY C O M M O D I T I E S A N D T H E I N W A R D - L O O K I N G N A T U R E OF O U R M A N U F A C T U R I N G INDUSTRY.

I B E L I E V E T H A T TO BE SELECTIVE, N A R R O W V I E W OF WHE RE THE P R O B L E M S L I E IN O U R POOR T R A D E PERFORMANCE. .

T H E P R I M E M I N I S T E R A N D T H E M I N I S T E R S FOR T R A D E AND P R I M A R Y IND USTR Y A R E N E V E R SLO W IN P O I N T I N G O U T THA T S U C C E S S IN THE E X P O R T S E C T O R IS I N T E R D E P E N D E N T WITH INTERNATIONAL. E X T E R N A L I T I E S SUC H AS INC REAS ING P R O T E C T I O N I S T PRESSURES,

THE F O R M A T I O N OF /

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T H E F O R M A T I O N O F T R A D I N G BLOCS, O V E R - P R O D U C T I O N AND SUBSIDI SATIO N. TH E Y DO NOT POINT O U T T H A T T H E B A S I S OF A S U C C E S S F U L E X P O R T S EC TOR RESTS ON T H E G O V E R N M E N T ' S P E R F O R M A N C E AND P O L I C Y D E C I S I O N S IN THE D O M E S T I C ECONOMY.

THE I N T ERAC TION OF INDUSTRIAL POL ICIE S IN A R E A S SUCH AS TRANSPORT, L A B O U R M A R K E T AND E CO NOMI C M A N A G E M E N T IN T H E D O M E S T I C E C O N O M Y D E T E R M I N E T H E A B I L I T Y OF A U S T R A L I A N E X P O R T E R S TO C O M P E T E S U C C E S S F U L L Y IN T H E I N T E R N A T I O N A L -

MARKET. . ■

R E D U C I N G D O M E S T I C T R A D E B AR RIER S W H I C H S U P P O R T INDUSTR IAL INEFFICIENCY, D I S T O R T I O N AND INEQUITIES IS U N D O U B T E D L Y A

F O R M I D A B L E T A S K TO /

8

F O R M I D A B L E T A S K TO C O N F R O N T G O V E R N M E N T WITH. IT IS A TASK

W H I C H R E Q U I R E S A L A R G E D E G R E E OF E C O NOMI C R A T I O N A L I S A T I O N A N D P O L I T I C A L FORTITUDE.

T H E SAGA OF M I S S E D O P P O R T U N I T I E S IN THIS A R E A D U R I N G T H E F IR ST TWO YEARS OF T H E L A B O R G O V E R N M E N T IS A R A T H E R LONG A N D SAD ONE. D O M E S T I C EC O N O M I C P R O B L E M S W H I C H HAV E ERO DED O U R I N T E R N A T I O N A L C O M P E T I T I V E N E S S , C O U P L E D WI T H T H E G O V E R N M E N T ' S

F A I L U R E TO A D D R E S S :P R O B L E M S SUCH A S E S C A L A T I N G W A G E COSTS, E S C A L A T I N G N O N - W A G E L A B O U R COSTS, E S C A L A T I N G G O V E R N M E N T WAGES A N D COSTS, OF REGULATION, D E C R E A S I N G E XP ORT PRICES, INCREASING · U N R E L I A B I L I T Y OF SUPPLY, POO R P R O D U C T O R I E N T A T I O N AND

PERFORMANCE, D I S C R I M I N A T I O N A G A I N S T C A P I T A L INTENSITY,

E X C E S S I V E G O V E R N M E N T /

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E X C E S S I V E G O V E R N M E N T E X P E N D I T U R E AND S H A R E OF GRO SS D O M E S T I C P R O D U C T HAV E C O N T R I B U T E D TO A U S T R A L I A O C C U P Y I N G A LESS THA N ROS Y POS ITIO N A M O N G S T O E C D COUNTRIES.

THE G O V E R N M E N T HAS NOT USED ITS S E C O N D M A N D A T E TO SHOW D I S C I P L I N E IN G O V E R N M E N T E X P E N D I T U R E O R M O N E T A R Y POLICY.

A L O N E A M O N G M A J O R TRA DING NATIONS, A U S T R A L I A HAS INCREASED G O V E R N M E N T E X P E N D I T U R E BY 6 - 7 PER C E N T IN RE A L T E R M S O V E R EAC H OF T H E LAS T TWO YEARS. . . :

IT HAS A L S O B E E N A L O N E IN A B A N D O N I N G M O N E T A R Y S U P P L Y TARGETING.

THI S D E C I S I O N HAS RIGHTLY BEE N JUDGED I N T E R N A T I O N A L L Y AS A.

S I G N OF WEAKNESS, /

10

SIGN OF WEAKNESS, R E F L E C T E D IN T H E F A L L I N G V A L U E O F THE DOLLAR

O N L Y T H R E E W E E K S AGO T H E C O M M O N W E A L T H B A N K R EV EALE D THA T REAL INTEREST RATES B E I N G E X P E R I E N C E D IN A U S T R A L I A A R E NOW A T THE H I G H E S T L E V E L FOR A T L E A S T A CENTURY. THI S D E M O N S T R A T E S HOW M I S L E A D I N G A N D O P P O R T U N I S T I C T H E P R I M E M I N I S T E R AND THE T R E A S U R E R W E R E D U R I N G T H E E L E C T I O N C O M P A I G N L A S T YE A R WHE N T H E Y P R E D I C T E D INTEREST RATES W OU LD F A L L T H I S YEAR.

IT IS A R E F L E C T I O N ON T H E H A W K E G O V E R N M E N T ' S EC O N O M I C POL ICY T H A T A T A T I M E WHE N T H E U N I T E D S TA TES P R I M E INT ERES T RATE IS A T ^ A S E V E N - Y E A R LOW A N D FALLING, A N D O T H E R INTEREST RATES A R O U N D THE W OR LD A R E A L S O FALLING, REAL INT ERES T RATES IN

A U S T R A L I A A R E SAID /

11

A U S T R A L I A A R E SAID T O BE A T THE H I G H E S T LEV EL FOR A C E N T U R Y A N D RISING. ''

MR H A W K E C A M E TO POWER ON T H E B A C K O F T H E ACCORD.

B U T TH I S S A C R E D COW T H R E A T E N S TO T I P A U S T R A L I A INTO A N O T H E R R E C E S S I O N B E C A U S E IT W I L L D E L I V E R C O S T S B E Y O N D T H E C A P A C I T Y OF M A N Y E M P L O Y E R S TO PAY.

MR H A W K E AND MR KEATING C L A IMED T H E D E V A L U A T I O N W O U L D B E - S U C C E S S F U L L Y M A N A G E D T H R O U G H T H E ACCORD.

B U T W H A T IS THE REALITY? S T A T I S T I C S FOR THE MAR CH Q U A R T E R SHO W A W A G E S D R I F T OF A R O U N D TWO PER C E N T W HI CH IS O C C U R R I N G

D E S P I T E T H E ACCORD. /

12

D E S P I T E THE ACCORD. THE B U S I N E S S S E C T O R NOW FAC ES A D E V A L U A T I O N INFLATION W A G E SPIRAL, A P R O D U C T I V I T Y C A S E IS ON THE CARDS, AND P O T E N T I A L IS T H E R E FOR TAX C H A N G E S TO F L O W T H R O U G H INTO WAGES.

IN A U S T R A L I A ' S C U R R E N T SITUATION, W A G E IND EXAT ION AND P R O D U C T I V I T Y INCREASES W I L L SHI FT A U S T R A L I A INTO D O U B L E D I G I T INFLATION.

W H E N M O S T OF O U R T R A D I N G P AR TNER S - THE U.S., CANADA, JAPAN AND. W E S T GERMANY, H A V E C U R R E N T INF LATION RATES O F B E L O W .

4 PER CENT, WE A R E V E R Y D E E P INTO T H E QUAGMIRE. ;

B U T IT IS THE H A N C O C K R E P O R T THA T WIL L GO DOW N IN HIS TORY AS

T H E R E P O R T THAT /

13

T H E R EP ORT T H A T D A M N E D A U S T R A L I A N IND USTR Y TO A F U R T H E R D E C L I N E I IN I N T E R N A T I O N A L COM PE T I T I V E N E S S .

R E C O M M E N D A T I O N S OF T H E H A N C O C K R EP ORT R E F L E C T A N A S T O U N D I N G IGN ORAN CE OF WH A T M A K E S O N E T R A D I N G N A T I O N M O R E C O M P E T I T I V E T H A N ANOTHER.

A U S T R A L I A CAN NO L O N G E R S U P P O R T A S U B S I D I S E D L A B O U R SYSTEM.

L A B O U R P O L I C Y M U S T BE G EA RED TO T H E INDIVIDUAL, T H E E M P L O Y E R A N D HIS ENT ERPRISE. IT M U S T B E G E A R E D TO T H E C A P A C T I Y O F .

T H A T E N T E R P R I S E TO P A R T I C I P A T E IN T H E L A B O U R M A R K E T W H I L E : M A I N T A I N I N G C O M PETI TIVEN ESS.

T H E R E W I L L A L W A Y S /

14

T H E R E W I L L A L W A Y S BE A P E R M A N E N T B R A K E ON GRO WTH A N D THE C O M P E T I T I V E A B I L I T Y OF A U S T R A L I A N INDUSTRY W H I L E THE PARALLEL B E T W E E N T H E LEV EL OF W A G E INC REAS ES AND R E S ULTA NT P R O D U C T I V I T Y C O N T I N U E S TO WIDEN.

T H E G O V E R N M E N T M U S T M O V E TO T A K E A D V A N T A G E OF THE E F F E C T S OF T H E D E V A L U A T I O N TO PUT E C O N O M I C R E C O V E R Y ON A S U S T A I N E D GROWTH PATH. -

T H E B U R G E O N I N G D E M A N D S OF T H E PUBLIC S E C T O R ON T H E E C O N O M Y ' S S A V I N G S A R E E M A S C U L A T I N G T H E P R O D U C T I V I T Y P O T E N T I A L OF THE P R I V A T E SECTOR. " '

IF T H E S E PRO BLEM S /

15

IF T H E S E P R O B L E M S A R E NOT TO B E EXA CERB ATED, T H E F O L L O W I N G IMM EDIATE A C T I O N M U S T BE TAK EN -

F I R S T - C O N F I D E N C E IN THE A U S T R A L I A N D O L L A R S H O U L D B E S HO RED UP BY P R E C L U D I N G F R O M WA G E INDEXATION IN S E P T E M B E R A N Y INC REAS E D U E TO DEVALUATION.

S E C O N D - O P P O S I T I O N TO A N Y P R O D U C T I V I T Y W A G E INCREASE.

T H I R D - M A J O R REAL R E D U C T I O N S IN S P E N D I N G P R O G R A M S IN THE A U G U S T F E D E R A L BUDGET.

F OU RTH - M O V E TO GIVE M O N E T A R Y P OL ICY S O M E O I R E C T T O N B Y

R E S T O R I N G M O N E T A R Y /

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R E S T O R I N G M O N E T A R Y T A R G E T I N G AS SOON AS POSSIBLE.

F I F T H - D E R E G U L A T I N G L A B O U R M A R K E T S AS SOON AS POSSIBLE, WITH R E A L O P P O R T U N I T I E S FOR O P T I N G OUT OF THE C E N T R A L I S E D A R B I T R A T I O N SYSTEM.

S I X T H - P O S I T I V E STEPS TO T R A N S F E R W H E R E V E R A P P R O P R I A T E THE C O M M E R C I A L A C T I V I T I E S OF F E D E R A L AND STA TE G O V E R N M E N T S TO T H E P R I V A T E SECTOR, A D O P T I N G THE Y A R D S T I C K OF WH A T IS B E S T FOR T H E T A X P A Y E R AND T H E CONSUMER.

S E V E N T H - A P R O G R A M OF D E R E G U L A T I O N TO P R O V I D E G R E A T E R : - M A R K E T INC ENTI VES A N D F R E E D O M S IN TRANSPORT, FINANCE,

C O M M U N I C A T I O N , M A N U F A C T U R I N G AND DISTRIBUTION.

. ■ UPON ITS RET URN /

/

UPON ITS R E T U R N TO G O V E R N M E N T THE C O A L I T I O N W I L L M O V E RAP IDLY TO BRI NG TO A C L O S E 85 Y E A R S OF G O V E R N M E N T INT RUSI ON INTO THE LIVES OF B U S I N E S S A N D THE INDIVIDUAL.

WE A R E PAR T OF A DYNAMIC, G R O WING PAC IFIC R E G I O N IN W H I C H T H E O P P O R T U N I T I E S A R E ENORMOUS. THE R E A L I T Y OF G E O G R A P H Y A N D THE V I T A L I T Y OF T H E I N T E RNA TIONA L M A R K E T P L A C E HAV E E N S U R E D THA T A U S T R A L I A ' S E C O N O M I C F UT URE IS IRREVOC ABLY B O U N D UP WIT H O U R

REGION. ■

WE A R E IN AN E X C E L L E N T P OS ITIO N TO F U R T H E R R E G I O N A L C O - O P E R A T I O N B E C A U S E OF THE FIRM P O L I T I C A L R E L A T I O N S H I P WE

HAVE E S T A B L I S H E D WITH A L M O S T ALL T H E C O U N T R I E S OF THE REGION.

THA T IS A ROL E WE SHOULD WELCOME. H I S T O R Y HAS SHOWN US THA T

17

C O U N T R I E S THA T HAV E /

18

C O U N T R I E S T H A T HAVE F O L L O W E D T H E L E A S T R E S T R I C T I V E ECONOMIC POLICIES, BOT H A T H O M E A N D ABROAD, HAVE E X P E R I E N C E D THE MOST RAPID E C O N O M I C GROWTH. R E C E N T E XA MPLE S INCLUDE HONG KONG,

SINGAPORE, T A I W A N A N D S O U T H KOREA.

H O W E V E R MUC H WE M I G H T B E P A R T OF T H E G L O B A L ECONOMY, A U S T R A L I A NEE DS TO GI V E M O R E E M P H A S I S TO T R A D E WIT H T H E C O U N T R I E S OF ITS REGION.

TO E X P L O I T F U L L Y T H E O P P O R T U N I T I E S O F F E R E D R E Q U I R E S A N D A U S T R A L I A N W I L L I N G N E S S TO G E T C L O S E R TO T H E IND IVID UAL , C O U N T R I E S W H I C H FOR M T H E REGION. THE RE IS NO S U B S T I T U T E FOR O N - T H E - G R O U N D EXPERIENCE, G R E A T E R U N D E R S T A N D I N G OF THE

C U L T U R A L S E N S I T I V I T I E S OF T H E REGION, AND BEI NG A T T U N E D TO

D E V E L O P M E N T A L TRENDS /

19

D E V E L O P M E N T A L T R E N D S IN T H E S E COUNTRIES.

A B O V E A L L WE NEE D TO BE M O R E FLEXIBLE. T H E C O U N T R I E S OF OUR REG ION A R E C H A N G I N G RAPIDLY - NOT O N L Y IN THEIR P A T T E R N S OF O U T P U T B U T A L S O IN C O N S U M P T I O N TRENDS. WE NEED TO PAY P A R T I C U L A R A T T E N T I O N TO THE FAC T THA T T H E S E C H A N G E S P R E S E N T US WI T H IMM ENSE OPP ORTU NITIE S. A U S T R A L I A HAS THE T E C H N O L O G I E S AND T H E S K I L L S W H I C H CAN A N D SHOULD. PLA Y A V I T A L PA R T IN THE

EC O N O M I C G R O W T H OF T H E REGION.

TO D E V E L O P M A R K E T S WE MUS T BE PRE PARE D TO A C C O M M O D A T E G R E A T E R A C C E S S TO O U R O W N M A R K E T BY O T H E R COUNTRIES. THE W I L L I N G N E S S TO A C C E P T M O R E IMPORTS REQ UIRE S A R E A P P R A I S A L OF OUR ' P R O T E C T I O N I S T

MEC HA N I S M S ' IN T H E /

20

M EC HANI SMS' IN T H E SAME W A Y WE H A V E D O N E WITH OUR TRA DING R E L A T I O N S H I P W I T H NEW Z E A L A N D (CER). IT WOU LD B E IN BOT H A U S T R A L I A ' S AND NEW Z E A L A N D ' S L O N G - T E R M INTEREST TO EXTEND CER TO T A K E IN O T H E R C O U N T R I E S IN T H E REGION, TO F A C I L I T A T E

NOT ONL Y THE F L O W OF GOO DS B U T A L S O T H E FLOW OF CAPITAL.

W E M U S T M A K E A N A L L - O U T PUSH IN I N T ERNA TIONA L F OR UMS SUCH AS G A T T F O R G R E A T E R T R A D E L I B E R A L I S A T I O N AND TO E N S U R E T H E INCREASING T R E N D T O W A R D S PRO TECT IONIS M, P A R T I C U L A R L Y THE N O N - T A R I F F VAR IETY , IS REVERSED. IF T H E P R E S E N T TREND T O W ARDS PROTECTIONISM,

N O T A B L Y BY THE EEC, IS NOT STEMMED, IT MAY N EG ATE A L L O U R E F F O R T S TO B O O S T EXPORTS. ~

T O T A L INCENTI VES TO E X P O R T INDUSTR IES WAS A B O U T $234 M I L L I O N

IN THE 1 9 8 4 / 8 5 B U D G E T /

IN T H E 1 9 8 4 / 8 5 BUDGET, T AK ING INTO A C C O U N T THE EMDG SCHEME, THE E X P O R T F I N A N C E A N D INSURANCE CORPORATION, A N D T R A D E P R O M O T I O N EXPENDITURE. R E G R E T T A B L Y T H E D E P A R T M E N T OF TRADE, IN ITS S U B M I S S I O N TO T H E E C O N O M I C PLA NNIN G A D V I S O R Y C O U N C I L ON TAX REFOR, DID N O T A D V O C A T E A N Y NEW B R O A D TAX M E A S U R E S TO S P E C I F I C A L L Y S T I M U L A T E E X P O R T ACTIVITY.

THE E X P O R T M A R K E T D E V E L O P M E N T G R A N T S C H E M E IS THE G O V E R N M E N T ' S F O R E M O S T E X P R E S S I O N OF C O M M I T M E N T TO E X P O R T ENC OUR A G E M E N T . HOWEVER, IN T H E M A Y ECO NOMI C STATEMENT, M R K E A TING A N N O U N C E D . . . M A J O R CUT S TO T H E S C H E M E TO T H E TUN E O F $48 MILLION. IN - O T H E R WORDS, T H E EMDG S CH EME R E P R E S E N T E D O N E O F THE

G O V E R N M E N T ' S B I G G E S T S IN GLE CUTS. . . .

21

AS WE A L L KNO W /

22

AS W E A L L KNOW, T H E G O V E R N M E N T A N N O U N C E D T H E M A J O R C UT BACK S W I T H O U T P R I O R W A R N I N G TO E X P O R T E R S AND W I T H O U T A L L O W I N G A N Y P H A S I N G - I N PERIOD. W H I L E T H E R E IS NO Q U E S T I O N T H A T C E R T A I N A S P E C T S OF T H E S C H E M E N EE DED REFORM, I D O N ' T B E L I E V E T H E A N N O U N C E D C H A N G E S C O R R E C T L Y I DE NTIF IED T H O S E ASPECTS.

T H E A M E N D E D C H A N G E S ARE, IN T H E WOR DS OF M R DAWKINS, TO RED UCE T H E 'AIMLESS A N D FRIVOLOUS' USE OR A B U S E O F THE SCHEME.

HOWEVER, IF T H I S IS T H E R E A L INTENT, 1 B E L I E V E T H E R E A R E B E T T E R WAY S OF G O I N G A B O U T IT.

T H E R E S H O U L D BE NO R E A S O N W H Y F A L S E C LA IMS C A N N O T BE IDENTIFIED A T T H E T I M E THE D E P A R T M E N T OF T R A D E A S S E S S E S CLAIMS.

T H E P R O B L E M LIE S W I T H T H E E V A L U A T I O N P R O C E S S AND THI S IS

W HE RE THE /

23

W H E R E T H E N E C E S S A R Y C H A NGES A R E NEEDED.

THE D E P A R T M E N T S HO ULD D I R E C T M O R E OF ITS E N E R G Y INTO O R G A N I S I N G ITS R E S O U R C E S AND D E V E L O P I N G N E W P R O CEDU RES FOR A S S E S S I N G C L A I M S IN O R D E R TO M I N I M I S E T H E S C O P E FOR MISUSE.

THE G O V E R N M E N T R E C E N T L Y A N N O U N C E D THE F O R M A T I O N OF AN A U S T R A L I A N T R A D E COMMISSION.

T H E P R O P O S A L TO B R I N G F O U R S T A T U T O R Y A U T H O R I T I E S U N D E R ONE S T A T U T O R Y B O D Y W A S IN LIN E W I T H T H E C O A L I T I O N ' S P H I L O S O P H Y OF I NC REAS ING E F F I C I E N C Y IN PUB LIC S E R V I C E S E C T O R S T H R OUGH

S T R E A M L I N I N G A N D A M A L G A M A T I O N OF FUNCTIONS.

I INI TIAL LY E X P R E S S E D /

24

I INI TIAL LY E X P R E S S E D C O N C E R N T H A T U N L E S S THE C O M M I S S I O N WAS A P P R O P R I A T E L Y S T R U C T U R E D T H E W H O L E C O N C E P T COULD BE T UR NED INTO A N A D M I N I S T R A T I V E N I G H T M A R E OF EPIC PROPORTIONS.

AS M O S T OF YOU A R E NOW AWARE, AS FAR AS T H E D E P A R T M E N T IS C O N C E R N E D IT W I L L BE R E T A I N I N G P OL ICY F U N C T I O N S W H I L E ALL F U N C T I O N S C O N N E C T E D TO M A R K E T I N G W I L L BE H A N D E D OVE R TO T H E NEW COMMISS ION. .

I B E L I E V E T H E R E A R E A N U M B E R O F A R E A S W H I C H S HO ULD BE OF C O N C E R N TO BOT H THE O P P O S I T I O N A N D T H E B U S I N E S S . O C M M U N I T Y . , . . . - ■■ · ■ ■' - ;?v

* NO S P E C I F I C A R E A S OF I M P R O V E M E N T OR M A J O R D I F F E R E N C E S IN

O P E R A T I O N S WER E /

25

O P E R A T I O N S W E R E O U T L I N E D TO D E M O N S T R A T E A T A N G I B L E I M P R O V E M E N T IN C O - O R D I N A T I O N R E S U L T I N G F R O M THE C H A N G E D STRUCTURE.

* T H E R E IS NO R E V I E W OF T H E C O M M I S S I O N ' S E F F E C T I V E N E S S ENVISAGED.

* EFIC WI L L STILL BE A S E P A R A T E L E G A L E N T I T Y B A S E D IN SYDNEY.

* T H E OPC W I L L S T I L L BE A S E P A R A T E L E G A L E N T I T Y B A S E D IN SYDNEY.

* M O S T D E P A R T M E N T A L P U B L I C I T Y WHICH IS C U R R E N T L Y B E I N G H A N D L E D IN M E L B O U R N E WIL L C O N T I N U E TO BE H A N DLED IN MELBOURNE. T H E R E A R E NO /

26

* T H E R E A R E NO F O R M A L M E C H A N I S M S FOR L I A I S O N WIT H T H E D E P ARTM ENT W H E N M U T U A L C O - O R D I N A T I O N OF P R O B L E M S IS. REQUI R E D .

* A L T H O U G H IT W I L L HAVE A S U B S T A N T I A L B U D G E T A L L O C A T I O N T H E F O R M A L LINES OF M I N I S T E R I A L R E S P O N S I B I L I T Y AND A C C O U N T A B I L I T Y HAV E B E E N REMOVED. T H E R E IS P O T E N T I A L FOR A N O T H E R A B C - T Y P E AUT HORI TY.

* T H E R E IS A N E X P E C T A T I O N T H A T T H E M O R E P O S I T I V E A S P E C T S

OF P UB LIC S E R V I C E E M P L O Y M E N T W I L L B E MAINTAI NED, SUCH AS. .

PUB LIC S E R V I C E S U P E R A N N U A T I O N A N D RIG HT OF R E - E N T R Y TO - : THE P UB LIC S E R V I C E S H O U L D T H E INDIVID UAL BE D I S M I S S E D -

FRO M T H E COMMISSION.

A P P R O X I M A T E L Y 300 E M P LOYE ES /

27

* A P P R O X I M A T E L Y 300 E M P L O Y E E S W I L L BE LEF T IN T H E T R A D E D E P A R T M E N T U N D E R T H E M I N I S T E R - D E P A R T M E N T R E L A T I O N S H I P W E A R E F A M I L I A R WITH.

* IS THI S A N A T T E M P T BY G O V E R N M E N T TO D I S T A N C E ITSELF FRO M T H E P R O B L E M S EX P O R T E R S FAC E WIT H B U R E A U C R A C Y ?

E X P O R T E R S P R E V I O U S L Y USING THE M I N I S T E R ' S O F F I C E TO R E S O L V E B U R E A U C R A T I C S T O N E W A L L I N G M A Y FIN D T H A T A V E N U E IS N O W CLOSED.

O T H E R T H A N A R E C O G N I T I O N T H A T S K I L L S W I L L B E N E C E S S A R Y TO E N S U R E T A R G E T I N G D O E S NOT B E C O M E DOG MATIC, T H E R E A R E NO

' M E C H A N I S M S FOR /

28

M E C H A N I S M S FOR E X P O R T E R S TO H A V E R E C O U R S E TO SHOULD P E R CEIV ED P R O B L E M S OF D I S C R I M I N A T I O N ARISE.

W H I L E S U P P O R T I N G THE C O N C E P T O F R A T I O N A L I S I N G THE D I S P A R A T E E L E M E N T S OF T H E T R A D E PORTFOLIO, T H E O P P O S I T I O N NO LONGER S U P P O R T S THE M A N N E R IN W H I C H T H E G O V E R N M E N T IS S T R U C T U R I N G T H E COMMISSION.

T H E E XP ORT C O M M U N I T Y HAS A L W A Y S SAID T H E T R A D E D E P A R T M E N T HAS F A I L E D TO BE R E S P O N S I V E TO T H E M A R K E T I N G INT EL L I G E N C E N E E D S O F EXPORTERS. T H E M I N I S T E R ' S SOLUTION. J O T H O S E

P R O B L E M S WAS T H E O N E - S T O P T R A D E SHOP.

B U T T H E ON E - S T O P

29

BUT T H E O N E - S T O P T R A D E SHO P IS NOT A O N E - S T O P SHOP - YOU CAN S T I L L C O V E R HALF OF A U S T R A L I A TO USE ITS RESOURCES, N O T HING M O R E THAN A SID E-ST EPPIN G, R E - S H U F F L I N G OF B U R E A U C R A C Y HAS OCCURRED. T H E R E IS NO C O M M E R C I A L O P E R A T I O N S BASE, A L L C O M M I S S I O N E R S W I L L BE G O V E R N M E N T - A P P O I N T E D , A N D THE P O T E N T I A L

FOR A B U S E HAS BE E N C R E ATED T H R OUGH R E M O V I N G M I N I S T E R I A L R E S P O N S I B I L I T Y A N D A CC OUNT ABILI TY.

T H E O P P O S I T I O N CAL LS ON THE G O V E R N M E N T TO R E M O V E THE 6 - P E R S O N D E P A R T M E N T A L TE A M C U R R E N T L Y IN C H A R G E OF S E T T I N G UP THE NEW COMMISS ION. ■ w ; > : :

THE O P P O S I T I O N R E Q U E S T S T H E M I N I S T E R TO IMM EDI A T L E Y A P P O I N T

AN IND EP E N D E N T TEA M /

30

AN IND EP E N D E N T T E A M OF M A N A G E M E N T CON SULTANT, WHO HAVE A P R O V E N REC ORD IN T H E A R E A OF P UB LIC S E R V I C E M A N A G E M E N T PROBLEMS, TO D E T E R M I N E HOW SUC H A T R A D E C O M M I S S I O N COULD BE SET UP IN A C O M M E R C I A L ENV IRON MENT.

IF T H E G O V E R N M E N T D O E S NOT C A R R Y OUT SUCH A MOVE, I A S S U R E YOU T H A T UPO N O U R RETURN TO G O V E R N M E N T WE WOU LD C O M M I S S I O N SUCH A STU DY TO SEE W H A T G E N U I N E R A T I O N A L I S A T I O N OF THE T R A D E P O R T F O L I O COU LD BE U N D E R T A K E N TO M A K E IT M U C H M O R E R E S P O N S I V E

TO EXP ORTE RS' NEEDS. :