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Government Should Mount Production Drive



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FROM THE DEFUI'Y LEADER OF THE OPPOSITION LJTHE HOW, PHiLLIF LYNCH, SV5.P, η-φζ

The Deputy Leader of the Opposition, Mr, Phillip Lynch, today called on the Federal Government to put real muscle into the fight against inflation by mounting a major productivity drive.

"Australia's productivity growth is inadequate by world standards", Mr. Lynch said.

"improved productivity is one of the major ways of reducing the debilitating effects of inflation on the purchasing power of the Australian dollhr.

"The August trade deficit - the worst for twenty-three years - clearly shows Australian goods are being priced out of domestic as well as overseas markets.

"Wage costs per-unit-of-output are rising faster than those of any of our overseas trading partners.

"High productivity would enable Australia to deal effectively with inflationary pressures by narrowing the gap between minimum money wage expectations and economic capacity.

"This is a positive means of maximising gains achieved by wage •price restraint, . .

"Productivity growth is dependent, in significant measure, on the rate of investment, industrial training programs to improve the quality of the workforce, technological change and the optimum allocation of productive resources.

"The Government should concentrate on major advances in these areas, .

"For Australia to remain an economy drawing real forward ' momentum from private sector capital investment, renewed incentive must be given to productivity advancement.

"The 1974-75 Budget should reverse Labor's previous fiscal measures that specifically discriminate against capital invest­ ment, whilst the credit squeeze which has caused private sector investment to stagnate, should be immediately eased.

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SEPTEMBER 8, 1974