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Need for restraint in incomes and prices



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ΙΉΕ LIBERAL PARTY OF AUSTRALIA

FEDERAL PRESIDENT: MR. R.J. SOUTHEY, C.M.G. DIRECTOR: MR. B.G. HARTCHER, O.B.E.

FEDERAL SECRETARIAT

NEWS RELEA SE:

BLACKALL & MACQUARIE STS., BARTON, A.C.T. G.P.O. BOX 13, CANBERRA, A.C.T. 2600 TELEPHONE 73 2564

FO R £f58fiEfiM8S,RA

F r o m The Hon. P h ilip L ynch, M .P ., D eputy L e a d e r of th e O pposition, L ib e ra l P a r ty S pokesm an on_Industrial R e la tio n s and Im m ig ra tio n _ _ _ ____________

T he A u s tra lia n G o v e rn m e n t's fa ilu re to adopt effectiv e an ti -in fla tio n a ry p o lic ie s is se e n by g o v e rn m e n ts o v e rs e a s a s a sig n ific a n t w eakness in the s ta b ility of o u r econom y, th e D eputy O pposition L e a d e r, M r. L ynch, sa id today.

M r. Lyn»h w as speaking a t T ull a m a rin e A irp o rt, M elbourne, a fte r an o v e rs e a s to u r d u rin g which he had d isc u ssio n s w ith g o v ern m en t, b u sin e ss and tra d e union le a d e r s in Ja p a n , th e U nited K ingdom , E u ro p e and I s r a e l .

He sa id in te rn a tio n a l e x p e rie n c e c le a rly re c o g n ise d th e need fo r r e s t r a i n t in both in co m es and p r ic e s .

"C o n c en tratio n on the p ric e s s e c to r w ithout re g a r d fo r m ovem ents in in c o m e s w as re g a rd e d a s no m o re th an econom ic to k e n ism and p o litic a l expediency, " he s a id . " A u s tra lia 's m a s s iv e in fla tio n a ry in c r e a s e s of the p a s t six m onths a re a te s tim o n ia l to the G o v e rn m e n t's unbalanced and ir r a tio n a l n atio n al p o lic ie s, and a r e a s ta r k

c o n tra s t to the p o lic ie s of o v e rs e a s g o v e rn m e n ts.

" T h e re i.s a lso a w ell-d ev elo p ed u n d e rstan d in g o v e rs e a s of the d a n g ers of e x c e ssiv e g o v e rn m e n t spending and d e fic it budgeting m an in fla tio n a ry situ a tio n . It is im p erativ e th a t th e re c e n t ta r if f c u ts not be u se d to ju stify u n w a rran ted and “irre s p o n s ib le g o v ern m en t spending - o r ae an ex cu se fo r avoiding, m e a s u re s r e la te d

to in co m es a s w ell a s p r i c e s ."

M r. L ynch sa id th a t unlike the L a b o r G o v ern m en t in A u s tra lia , o v e rs e a s g o v e rn m e n ts w e re not p reo ccu p ied with a re d u c tio n in the w orking w eek but with the re c y c lin g of h o u rs d esigned to add to p ro d u ctiv ity and r e a l le is u r e tim e ,

w ithout com pounding in fla tio n a ry p r e s s u r e s .

"G o v ern m en ts and le a d e r s in E u ro p e and Ja p a n a re now confused and d istu rb e d by th e A u s tra lia n G o v e rn m e n t's p o lic ies in a n u m b er of m a jo r a r e a s , " he s a id .

"T h e re is w id e sp re a d u n c e rta in ty about the fu tu re of the m in e ra ls in d u stry and the n a tu re of o v e rs e a s in v estm en t; and a p p re h en sio n about th e d ire c tio n of A u s tra lia n fo re ig n p olicy.

" A u s tra lia w ill s u ffe r ir r e p a ra b le h a rm u n le ss th e P rim e M in iste r and h is C ab in et co llea g u es a r e p re p a re d to re c o g n ise th e econom ic and in d u s tria l r e a litie s which re q u ire stro n g and effectiv e a c tio n ."

He s a id the G o v e rn m e n t's p re s e n t p ric e c o n tro l le g is la tio n is a m anifold f a r c e .

"T he G o v ern m en t looks s e t to go down in h is to ry a s reig n in g o v e r the la r g e s t continuous in c re a s e in th e in fla tio n a ry s p ir a l e v e r, " M r. LyncJjr sa id .

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JULY 29, 1973.