Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Opening speech at the Premiers' Conference



Download PDFDownload PDF

OPENING SPEECH BY THE FRIME M IN IS T E R . THE HON. E o G . WHITLAM, Q . C . . M .P 0<

AT THE PR E M IE R S' CONFERENCE. CANBERRA.

I T I S NEARLY TWELVE MONTHS S IN C E WE LAST MET I N T H IS

CHAMBER. I T HAS BEEN A MOMENTOUS P E R IO D . OVERSHADOWING THE

PA ST TWO MONTHS HAS BEEN THE E L E C T IO N . BUT THAT I S NOW BEHIND

U S'. THE PEOPLE HAVE RETURNED MY PARTY TO O F F IC E AND WE ARE NOW

GETTING ON WITH THE B U S IN E S S OF GOVERNMENT.

THE GOVERNMENT I S COMMITTED TO THE PROGRAMS OF SO C IA L

PROGRESS WHICH I T HAS GOT UNDER WAY S IN C E DECEMBER 1 9 7 2 . THOSE

PROGRAMS HAVE GREATLY EXPANDED THE O PPO R T U N IT IES AVAILABLE TO

A U S T R A L IA N S , BOTH AS IN D IV ID U A L S AND AS MEMBERS OF CO M M UNITIES.

MANY OF THEM, OF CO URSE, INVOLVE THE CO -O PERATIO N OF THE STA TES

AND TH EIR TNSTRTTMFNTALTTIES .

IN MY OPENING SPEECH AT T H IS CONFERENCE LAST YEAR I SET

DOWN CLEARLY AND UNEQUIVOCALLY THE BROAD L IN E S WE WOULD FOLLOW ,

IN OUR RELATIONS WITH THE S T A T E S . '

THE STA RTIN G PO IN T WAS SIM PLY T H IS : WE B E L IE V E THAT

THE TOTAL AMOUNTS OF A S S IS T A N C E PROVIDED TO THE STA TE S IN THE PA ST

HAVE, IN TERMS OF THE TASKS L A ID UPON THEM, BEEN INA D EQ U A TE. THE

RESULT HAS BEEN AN ACCUMULATION OF SE R IO U S D E F IC IE N C IE S ACROSS A

WIDE RANGE OF FUNCTIO NS OF CRUCIAL IMPORTANCE I N THE W E LL -B E IN G OF

OUR COMMUNITY: OVERCROWDED AND IN S U F F IC IE N T L Y STA FFED SCH OO LS,

AN INEQ UITABLE D IS T R IB U T IO N OF HEALTH S E R V IC E S , H OPELESSLY ■

INADEQUATE AND UNCO-ORDINATED SYSTEMS OF URBAN PU B L IC TRANSPO RT,

A HUGE BACKLOG OF UNSEWERED H O U SIN G , AN OVERCROWDING OF

POPULATION IN OUR MAIN C I T I E S , AND SO O N .

. . . / 2 1

2

THE AUSTRALIAN GOVERNMENT HAS TAKEN A LARGE NUMBER

OF IMPORTANT I N I T I A T I V E S DESIGNED TO TACKLE THESE D E F IC IE N C IE S '.

BROADLY, I T HAS MOVED ON W O FR O N T S. F I R S T , I T HAS E ST A B L ISH E D

NEW IN S T IT U T IO N S AND NEW MECHANISMS FOR A S S E S S I N G , ON A NATIONAL

B A S IS BUT I N FULL CO-OPERATION WITH THE STA TE S AND TH EIR

A U T H O R IT IE S , NEEDS AND P R IO R IT IE S IN EACH OF THE MAIN AREAS OF

CONCERN. THE SCHOOLS COM M ISSION, THE H O SP IT A L S AND HEALTH

SE R V IC E S CO M M ISSIO N, THE DEPARTMENT OF URBAN AND REGIONAL

DEVELOPMENT AND - THE EXPANDED GRANTS COMM ISSION ARE SOME OF THE

MAIN EXAMPLES OF MANY THAT COULD BE C IT E D .

SECONDLY, THE GOVERNMENT H A S , ON THE B A S I S OF THESE .

EXPERT A S S E S S M E N T S , BEGUN TO PROVIDE LARGE AMOUNTS OF FUNDS TO;

THE S T A T E S . I N RESPECT OF TWO AREAS - TERTIARY EDUCATION AND,

PU B L IC HOUSING - WE ASSUMED FULL F IN A N C IA L R E S P O N S IB IL IT Y AND

MADE APPR O PR IATE ADJUSTMENTS TO THE LEVELS OF GENERAL PURPOSE

FUNDS MADE AVAILABLE TO THE S T A T E S . Ϊ Ν 'OTHER A R E A S , WE

UNDERTOOK NEW OR EXPANDED PROGRAMS OF S P E C I F I C PURPOSE

A S S IS T A N C E D ESIG N ED TO ADD TO E X IS T IN G STATE P R O V IS IO N S IN THEμ

AREAS CONCERNED AND SO TO ACCELERATE IMPROVEMENTS I N STA N D A R D S.

THE O PPO R T U N IT IES FOR A BETTER AND FULLER L IF E WHICH

THESE PROGRAMS PROMISE ARE BECOMING IN C R EA SIN G L Y E V ID E N T AS TIME

GOES B Y . WE W ILL GO ON WITH THEM. THERE I S , HOWEVER, A NEED

FOR ALL OF US NOT TO TRY TO PUSH AHEAD SO F A S T THAT THE ECONOMY

I S UNABLE TO MEET OUR DEMANDS.

I SAY THAT BECAUSE THE ECONOMY I S CURRENTLY

THREATENED BY A SE R IO U S IN F L A T IO N . THAT IN F L A T IO N MUST BE

CURBED. THE GOVERNMENT I S DETERMINED TO CURB IT*. ,

. . . / 3

Jj.

WE H AVE, IN THE PA ST EIGHTEEN MONTHS, TAKEN MAJOR S T E P S

TO CHECK IN F L A T IO N . WE HAVE SET AN EXCHANGE RATE FOR THE

AUSTRALIAN DOLLAR APPROPRIATE TO OUR CIRCUMSTANCES'. WE PUT A

' STO P TO THE E X C E S SIV E INFLOW OF MONEY FROM OVERSEAS'. WE CUT

T A R IF F S SHARPLY A C R O SS-T H E -B O A R D . WE INCREASED TAXES BY OVER

$ 6 0 0 M IL L IO N , ON A FULL-YEAR B A S I S , I N OUR F I R S T BUDG ET.

THROUGH THESE AND OTHER MEANS WE ST E A D IL Y DRAINED OFF THE

E X C E S SIV E L IQ U ID IT Y PRESENT I N THE ECONOMY WHEN WE F I R S T TOOK

O F F IC E . I N DOING S O , WE HAD TO ACCEPT MUCH HIGHER IN T E R E ST

RATES THAN MY PARTY F IN D S PA L A T A B L E. MANY OF THESE S T E P S HAVE

BEEN C R IT IC IS E D BY THE VERY PEOPLE WHO COMPLAIN MOST LOUDLY ABOUT

IN F L A T IO N . I N O T IC E , HOWEVER, THAT NEARLY ALL THE PR O FE SSIO N A L

ECONOMISTS WHO HAVE COMMENTED ON OUR P O L IC IE S HAVE S A ID THEY

WERE RIGHT AND COURAGEOUS.

IN MY P R E S S CONFERENCE ON 7 MAY I N SYDNEY I S A ID

” WE ARE PREPARED TO STRENGTHEN ALL THE S T E P S 'UΛ

WE HAVE ALREADY TAKEN AND TO TAKE ANY OTHER S T E P S

WHICH OUR ECONOMIC A D V ISE R S B E L IE V E NECESSARY TO '

DEFEAT I N F L A T I O N .”

I MEANT TH AT. AND I TRUST THAT NOW, I N THE LIG H T OF THE

ELECTIO N CAM PAIGN, I T I S COMMON GROUND THAT IN F L A T IO N MUST BE

D E FE A T ED . I F THERE I S ONE THING THE CAMPAIGN HAS MADE CLEAR,

I T I S THAT1.

THERE ARE NO EASY WAYS OF CURBING IN F L A T IO N . NOR CAN

I T BE CURBED BY PU SH IN G ALL OF THE BURDEN OF DOING SO ONTO A

PARTICULAR GRO UP. A DOLLAR SPEN T BY THE P R IV A T E SECTOR ADDS

AS MUCH TO IN FL ATIO NARY PRESSU RES AS A DOLLAR SPEN T BY THE PUBLIC

SE C T O R . A DOLLAR SPEN T BY A STATE GOVERNMENT ADDS AS MUCH TO

INFLATIO NARY PR E SSU R E S AS A DOLLAR SPEN T BY THE AU ST R A L IA N

GOVERNMENT*;

. . . / 4

4

THE AUSTRALIAN GOVERNMENT I S CURRENTLY SEE K IN G TO

R E ST R A IN PR IV A TE SECTOR SPEN DING BY K EEPING MONEY T IG H T . I T

I S SEEK ING TO ENCOURAGE SAVING AND DISCOURAGE SPEN D IN G BY .

INCR EA SIN G THE ATTRACTIVENESS OF F IN A N C IA L A S S E T S „ HENCE THE

R I S E I N Y IE L D S ON GOVERNMENT S E C U R IT IE S THAT I S OCCURING I N THE

MARKET. WE ARE FOLLOWING SUCH A MONETARY P O L IC Y , NOT BECAUSE

WE L IK E I T S CONSEQUENCES I N TERMS OF FIN A N C IA L STRINGENCY AND

HIGHER IN T E R E ST R A T E S , BUT BECAUSE WE HAVE TO I F THERE I S TO BE

A CURB ON E X C E S SIV E PR IV A TE S P E N D IN G .

T H IS M EETIN G , OF CO URSE, I S CONCERNED WITH GOVERNMENT

S P E N D IN G . THAT TOO MUST PLAY I T S PART I N ANY PO LICY OF R E S T R A IN T .

I T GOES A G A IN ST THE G RAIN FOR ME TO SAY THAT BUT ALL

OF US HERE MUST ACCEPT THE R E A L I T IE S . IN FL A T IO N MUST BE CHECKED,

AND I T MUST BE CHECKED D E C IS IV E L Y .

I KNOW I AM PREACHING TO THE CONVERTED BUT LET ME SAY

A L IT T L E ABOUT THE ECONOMIC S IT U A T IO N AND OUTLOOK.

THE CONSUMER P R IC E INDEX ROSE BY 1 3 ' . 6 PER CENT I N THE

YEAR TO THE MARCH QUARTER. I T S RATE OF INCR EA SE WAS REDUCED I N

THE MARCH QUARTER BUT THE FUTURE FOR P R IC E S REMAINS OM INOUS.

P R IC E S ARE BEIN G PUSHED ALONG BY A COMBINATION OF ;-

E X C E SSIV E DEMAND AND E X C E S SIV E COST IN C R E A S E . IN C R E A SIN G L Y ,

PEOPLE ARE A D JU ST IN G THEIR SPEN D IN G BEHAVIOUR TO IN F L A T IO N ,

MAKING THE PROBLEM S E L F -P E R P E T U A T IN G .

OVER THE PA ST YEAR TOTAL S P E N D IN G , IN REAL TERM S, ROSE

BY 1 0 PER C E N T . MUCH OF THAT INCREASE WAS S A T I S F I E D , NOT FROM

OUR OWN PRO DUC TIO N, BUT BY A VERY LARGE R I S E I N IMPORTS'. WE

WANTED THAT TO H A PPE N , AND I T H A S. EVEN S O , DEMAND HAS

O UTSTRIPPED S U P P L IE S - ‘ SHORTAGES OF B A S IC MATERIALS AND EVEN OF

SOME CONSUMER GOODS ARE W ID E SPR E A D . INDUSTRY I S OPERATING AT (

FULL C A P A C IT Y , SU B JE C T ONLY TO CONSTRAINTS IMPOSED BY LABOUR AND ·

MATERIAL SHORTAGES A N D , I N SOME C A S E S , IN D U ST R IA L D IS P U T E S '.

. . . / 5

5 .

CREDIT A V A IL A B IL IT Y HAS NOT SO FAR BEEN A MAJOR CONSTRAINT -

MONETARY TIGH TNESS I S AT PRESENT CH IEFLY SER VING TO L IM IT THE

DEGREE TO WHICH PEOPLE AND FIRM S B ID AG AINST ONE ANOTHER FOR

ALREADY SCARCE RESOURCES'.

CONSUMER SPEN D IN G I S BOOMING. PR IV A T E INVESTM ENT

ALSO I S MOVING UP STRONGLY. ALTHOUGH THE SU PPL Y OF HOUSING

FINANCE HAS COME DOWN FROM THE EXTRAORDINARY H EIG H TS OF A

YEAR AGO, THE HOUSING INDUSTRY I S S T IL L VERY MUCH UNDER STRAIN*.

I N THE RECENT MARCH QUARTER, FOR EXAMPLE, THE INDUSTRY COMMENCED

MORE DW ELLINGS, I N SEASONALLY ADJUSTED TERMS, THAN I T HAS EVER

BEEN ABLE TO COMPLETE I N A QUARTER'. AT THE END OF MARCH,

THERE WERE 1 0 0 , 0 0 0 DWELLINGS UNDER CO NSTRUCTIO N, SOME 3 0 PER CENT

MORE THAN A YEAR E A R L IE R . I T I S THESE PR E SSU R ES THAT HAVE

CAUSED HOUSE P R IC E S TO R I S E SO EXORBITANTLY - AND PREVENTED

MONEYS APPROPRIATED FOR WELFARE HOUSING FROM B E IN G PUT TO

E FFE C T IV E U S E . ALTHOUGH, I N THE YEAR TO THE MARCH QUARTER,

MORE DWELLINGS I N TOTAL WERE COMPLETED THAN I N ANY PREVIO US

COMPARABLE P E R IO D , THERE WERE FEWER COMPLETED I N THE PU B L IC

SECTOR THAN I N ANY OF THE PA ST 1 5 YEARS’.

THE PU B L IC SECTOR TOO I S TRYING TO IN C R E A SE I T S

SPEN DING FASTER THAN THE A V A IL A B IL IT Y OF RESOURCES W ILL PERMIT*.

T H IS I S E SP E C IA L L Y TRUE OF CAPITAL E X P E N D IT U R E S , WHERE SU PPLY

CONSTRAINTS ARE PREVENTING BUDGETED FUNDS FROM B E IN G SPEN T AND

TENDER P R IC E S - WHERE TENDERS CAN BE OBTAINED - ARE B EIN G D RIV EN

UP EVEN MORE THAN COST MOVEMENTS WOULD N E C E S S IT A T E .

OUR P O L IC IE S WILL BE DIRECTED TO B R IN G IN G DEMAND BACK

TO AN APPROPRIATE L E V E L . WITHOUT THAT THERE CAN BE NO HOPE OF

CHECKING THE ACCELERATING TREND IN MONEY INCOMES < . IN F IA T IO N A R Y

E X P E C T A T IO N S, SPURRED ON BY THE R A PID CLIMB IN P R I C E S , ARE

LEADING TO PRESSU RE FOR VERY LARGE WAGE IN C R E A SE S AND TO

EMPLOYERS PAYING THEM I N THE EXPECTATION THAT IN F L A T IO N WILL

. . . / 6

6

CONTINUE AND THAT THEY CAN THEREFORE BE PA SSED ON AGAIN IN P R I C E S . {

WE - ALL OF US - MUST BREAK THOSE INFLATIO NARY EXPECTATIONS';

WE MUST SHOW THAT THOSE WHO BANK ON DO U B L E-FIG U R E IN FL A T IO N

CONTINUING WILL BE PROVED WRONG AND SEE THAT THEY F IN D THE

LESSON AN E X PE N SIV E O N E . I T HAS FOR SOME TIME BEEN EASY TO

BORROW MONEY, IN V E S T I N REAL A S S E T S SUCH AS PRO PERTY, AND

EMERGE WITH A HANDSOME PR O FIT A R IS IN G NOT FROM PRODUCTIVE

EFFORT BUT FROM IN F L A T IO N . WHEN, A S WE W IL L , WE HEAR OF

SOME SUCH VENTURES GOING BADLY WRONG I N THE PE R IO D AHEAD,

WE WILL KNOW THAT THE R IS K ELEMENT H A S-B E E N RE-INTRO DU CED :

INTO SUCH FORMS OF INVESTM ENT.

OF CO URSE, THE GOVERNMENT'S PRESENT P O L IC IE S WILL

STE A D IL Y BRING DEMAND BACK INTO L I N E . THEY W ILL GRADUALLY

SLOW THE INCR EA SE I N PR IV A TE SPEN D IN G A S TIME GOES B Y .

BUT THAT WILL NOT BREAK THE PRESENT S P I R A L . AVERAGE

EARNINGS SEEM TO HAVE R IS E N 1 6 - 1 7 PER CENT I N 1 9 7 3 - 7 4 AND

I F PRESENT TRENDS WERE TO CONTINUE THEY WOULD BE LIK ELY TO

R IS E BY MORE THAN 2 0 PER CENT I N 1 9 7 4 - 7 5 ’. MOREOVER, WITH

P R IC E S R IS IN G AT THE RATE THEY A R E , DEMANDS FOR NEW WAGE

INCR EA SES ARE B EIN G MADE LITERALLY W IT H IN MONTHS OF THE LAST

DEMAND1. THE S P IR A L MUST BE BROKEN. THE P R IC E S J U S T IF IC A T IO N

T R IB U N A L , WHICH WE PROPOSE TO STRENGTHEN, CAN ONLY DO SO MUCH.

I F THE S IT U A T IO N I S ALLOWED TO D R IF T , WE ARE LIK ELY

TO END WITH THE WORST OF ALL WORLDS - OUTPUT WILL SLOW, BUT

COST AND P R IC E LEVELS WILL GO ON R I S I N G . THE GROWTH OF

IMPORTS WILL EXERT A DAMPENING IN FL U E N C E : BUT THAT FACTOR

CANNOT BE CALLED UPON FOR EVER'.

I HAVE ON SEVERAL OCCASIONS ADVOCATED A REFERENCE OF

POWER OVER P R IC E S FROM THE STATES TO THE AUSTRALIAN GOVERNMENT'.

SOME OF YO U, I R E A L IS E , HAVE E XPRESSED DOUBTS OR M IS G IV IN G S ABOUT

THE IM PL IC A T IO N S OF ANY TEMPORARY REFERENCE OF SUCH A POWER1.

• . . / 7

7 .

I DO F E E L , HOWEVER, THAT THERE ARE ASPECTS OF T H IS POWER

CURRENTLY VESTED IN THE STATES WHICH ARE NOT B EIN G

EFFE C T IV EL Y USED I N MOST STA TES IN THE FIG H T A G A IN ST

IN F L A T IO N . THE MOST OBVIOUS EXAMPLE I S THE R A PID

ESCALATIO N OF LAND P R IC E S WHICH IN 1 9 7 3 WERE OF THE ORDER

OF 3 0 PER CENT AND 4 0 PER CENT I N THE MAJOR STATE C A P IT A L S .

OUR CONCLUSION THEREFORE I S THAT VIGOROUS AND

D E C IS IV E ACTION I S NEEDED NOW AND I N THE MONTHS AHEAD,

INCLUDING IN THE BUDG ET, TO TURN BACK IN F L A T IO N .'

■IN T H I S , EVERYONE WILL HAVE TO PLAY A P A R T .

THAT INCLUDES GOVERNMENTS. THE AUSTRALIAN GOVERNMENT WILL

DO WHAT I T HAS TO D O , BOTH I N THE AREAS OF SPEN D IN G AND

C O ST-PU SH IN F L A T IO N . I MENTION HERE IN RELATION TO THE

LATTER THAT I HAVE ALREADY SET UP AN INTERDEPARTMENTAL

COMMITTEE, UNDER THE CHAIRMANSHIP OF MY. OWN DEPARTMENT,

AND INCLUDING THE DEPARTMENTS OF THE TREASURY AND LABOUR,

TO PREPARE A REPORT FOR THE CONSIDERATION OF M I N I S T E R S O N

THE VERY IMPORTANT CONFERENCE CALLED BY MR J U S T IC E MOORE

TO CONSIDER METHODS OF WAGE F IX A T IO N .

TODAY, HOWEVER, WE ARE CO NSIDERING IS S U E S

RELATING TO GOVERNMENT SPEN D IN G J AS I HAVE S A I D ,

GOVERNMENT SPE N D IN G I S NOT MORE INFLATIO NARY THAN PR IV A T E

S P E N D IN G , AS SOME OF OUR WILDER C R IT IC S SEEM TO A L L E G E .

BUT NEITHER I S I T L E S S IN FL A T IO N A R Y . IN ORDER TO HELP

BREAK INFLATIO NARY E X PE C T A T IO N S, WE MUST NOW SLOW THE RATE

OF INCREASE I N GOVERNMENT S P E N D IN G . SOME PH A SIN G DOWN

OR DEFERMENT OF SOME EXPENDITURE PLANS MUST OCCUR.

· . . . / 8

8

AS REGARDS EXPENDITURE PROGRAMS WHICH ARE WHOLLY OUR

OWN R E S P O N S IB IL IT Y , THE GOVERNMENT WILL BE LOOKING CLOSELY AT

ALL SUCH PROGRAMS AS I T PROCEEDS WITH PREPARATIO N FOR I T S

1 9 7 4 - 7 5 BU D G E T, WE ARE ANXIOUS TO SEE THAT THERE I S CONTINUED

SU B ST A N T IA L PROGRESS WITH THE PROGRAMS WE HAVE BEEN IM PLEM ENTING ,

E SPE C IA L L Y I N SUCH VITALLY IMPORTANT F IE L D S AS EDUCATION AND

HEALTH, AT THE SAME T IM E , WE RECOGNISE THAT I T W ILL NOT BE

F E A S IB L E , I N THE CIRCUM STANCES, TO ACHIEVE IN THE COMING

F IN A N C IA L YEAR THE RATES OF PROGRESS WITH ALL THESE PROGRAMS TO

WHICH EA R L IE R PLANNING AND EXPECTATIONS HAVE BEEN P IT C H E D .

WITH A NUMBER OF THEM, WE W ILL HAVE TO ACCEPT A SLOWER RATE OF

IMPLEMENTATION THAN WE HAD BEEN HOPING F O R . AS PART OF THE

BATTLE TO CONTAIN IN FL A T IO N WE WILL BE FOLLOWING A P O L IC Y OF

RESTR AINT IN OUR OWN S P E N D IN G . WE WILL ALSO BE LOOKING TO ;

THOSE OF OUR B U S IN E S S E N T E R PR ISE S W H ICH ,Α ^Ε NOT PAYING TH EIR OWN

WAY - THAT I S , WHOSE LO SSE S ARE BEIN G IMPOSED ON THE TAXPAYER -

TO L IF T TH EIR CHARGES'. USERS MUST PAY MORE OF THE COSTS IN V O L V E D .

FOR THE MOST P A R T , THE AUSTRALIAN GOVERNMENT'S

D E C IS IO N S REGARDING EXPENDITURE IN THE COMING YEAR ON PROGRAMS

WHICH ARE WHOLLY I T S R E S P O N S IB IL IT Y MUST N E C E SSA R IL Y AWAIT THE

1 9 7 4 - 7 5 BU D G E T. BUT I ANNOUNCE NOW CERTAIN D E C IS IO N S WHICH

IL L U ST R A T E , BY WAY OF EXAMPLE, WHAT OUR APPROACH W ILL B E .

THE POST O FFIC E : ,

WE INTEND TO KEEP THE BUDGET .ALLOCATION FOR THE POST .

O F F IC E I N 1 9 7 4 / 7 5 TO NOT MORE THAN THE ACTUAL AMOUNT ALLOCATED

I N 1 9 7 3 / 7 4 l. ; T H IS WILL MEAN TWO T H IN G S . F I R S T , THE PO ST ,·

O F F I C E 'S CA PIT A L PROGRAM WILL HAVE TO BE REDUCED BELOW THE LEVEL

THAT HAD BEEN IN D IC A T E D BY THE POST O F F IC E ’ S FORWARD PLANNING*.

. . . / 9

9

SECOND, EVEN TO FINAN CE SUCH A REDUCED PROGRAM I T WILL BE

NECESSARY FOR THE PO ST O FFIC E TO R A IS E SU B ST A N T IA L

A D D ITIO N A L REVENUE BY WAY OF INCREASED CHARGES. THE

TELECOMMUNICATIONS SE R V IC E I S AT PRESENT OPERATING AT VERY

MARGINAL RATES OF P R O F IT A B IL IT Y , AND THE POSTAL SE R V IC E I S

PRESENTLY RUNNING AT A LOSS WHICH WOULD BE OVER $ 7 0 M IL L IO N

I N 1 9 7 4 / 7 5 . PO STAL AND TELECOMMUNICATIONS CHARGES WILL

HAVE TO BE INCREASED SO THAT AS A GENERAL RULE THE P R IC E S

P A ID BY USERS OF THE SE R V IC E S WILL MORE TRULY REFLECT

COMMERCIAL C O S T S . ONE EFFECT OF T H IS W IL L BE TO REDUCE

DEMAND FOR NEW TELEPHONE S E R V IC E S , WHICH I S AT PRESENT

INFLATED BY THE LOW P R IC E S BEIN G CHARGED R ELA TIV E TO THE

COST OF PRO V ID IN G THE SE R V IC E S'.

TO IL LU ST R A T E THE S IG N IF IC A N C E OF WHAT I HAVE

S A I D , I PO IN T OUT THAT ADVANCES TO THE PO ST O F F IC E REPRESENT

THE LARGEST SIN G L E ITEM OF AUSTRALIAN GOVERNMENT EXPENDITURE

ON ECONOMIC S E R V IC E S . ADVANCES TO THE PO ST O FFIC E Ϊ Ν 1 9 7 3 . / 7 4

WILL AMOUNT TO $ 3 8 5 M ILLION OUT OF A TOTAL EXPENDITURE ON ALL

FORMS OF TRANSPORT AND COMMUNICATIONS OF ABOUT $ 8 6 0 M IL L IO N .

AS I HAVE IN D IC A T E D , I T WILL BE NECESSARY FOR THE

PO ST O FFIC E TO R A IS E SU BSTANTIAL A D D ITIO N A L REVENUE BY WAY OF

IN C R E A SE ! CHARGES. T H IS I S ENTIRELY C O N SIST E N T WITH ONE OF

THE F IN D IN G S OF THE COMMISSION OF IN Q U IR Y INTO THE AUSTRALIAN

PO ST O FFIC E (THE VERNON COM M ISSION) - NAMELY, THAT AN

O B JEC T IV E I N SE T T IN G CHARGES FOR POSTAL AND TELECOMMUNICATIONS

S E R V IC E S SHOULD BE TO RECOUP FROM USERS THE COST OF THE

S E R V IC E S AND ALSO TO P R O V ID E , TOGETHER WITH OTHER FUNDS

GENERATED INTERNALLY SUCH AS D E PR E C IA T IO N AND * P R O V IS IO N S ,

AMOUNTS EQUAL TO 5 0 PERCENT OF CAPITAL EXPENDITURE I N EACH

Y E A R .

. . . / 1 0 '

1 0 .

CAPITAL WORKS AND OTHER CAPITAL E X PENDITURE:

WE INTEND TO APPLY MOST STRINGENT R ESTR AINTS ON

CAPITAL WORKS AND OTHER CAPITAL EXPENDITURE IN 1 9 7 4 - 7 5 BY

AUSTRALIAN GOVERNMENT DEPARTMENTS AND A U T H O R IT IE S . THE

A PPL IC A T IO N OF THESE RESTR A IN TS WILL EXTEND TO PROJECTS IN

THE AUSTRALIAN C A PIT A L TERRITORY AND THE NORTHERN T ER R ITO R Y ,

WITH DUE RECOGNITION TO THE GOVERNMENT'S P R IO R IT IE S IN THE

HEALTH AND EDUCATION A R E A S. THE F IE L D I S A COMPLEX ONE AND WE

SHALL HAVE TO SORT OUT OUR P R IO R IT IE S IN THE TIME AHEAD. AS

ONE S P E C IF IC EXAMPLE, HOWEVER, I MENTION THAT IN THE CASE OF

C I V I L A V IA T IO N C A PITA L WORKS WE SHALL IN 1 9 7 4 - 7 5 HOLD ACTUAL

EXPENDITURE TO NOT MORE THAN THE LEVEL OF EXPENDITURE IN

1 9 7 3 - 7 4 . TO THAT END WE WILL BE TAKING ACTION TO SLOW DOWN

THE RATE OF DEVELOPMENT OF NEW AIRPORT WORKS. IN A D D IT IO N , THE

C A PITA L WORKS PROGRAMS FOR C I V I L A V IA TIO N IN THE YEAR 1 9 7 4 - 7 5

WILL BE FRAMED ON THE B A S IS OF THE GOVERNMENT'S D E C IS IO N TO

BE RECOVERING BY THE END OF F IV E YEARS 8 0 PER CENT OF THE

COST OF AIRPORT AND AIRWAY F A C IL IT IE S FROM THE USERS OF THOSE

F A C I L I T I E S . ACH IEVING T H IS POLICY O BJECTIVE I S INVOLVING

MEETINGS WITH ALL SECTORS OF THE A V IA TIO N IN D U ST R Y , THE

MOST RECENT OF WHICH WAS HELD LAST WEEK. I ALSO ANNOUNCE

THAT WE SHALL L IM IT EXPENDITURE IN 1 9 7 4 - 7 5 ON THE OPERATION

OF AIRPORT AND AIRWAY F A C I L I T I E S TO THE SAME REAL LEVEL AS

IN 1 9 7 3 - 7 4 .

. . J l l

1 1.

PETROLEUM PRODUCTS P R IC E S S U B SID Y SCHEME:

T H IS SCHEME AT PRESENT OPERATES TO KEEP THE

WHOLESALE P R IC E S OF PETROLEUM PRODUCTS IN AREAS O UTSIDE

THE CAPITAL C I T I E S TO W ITH IN 5 CENTS PER GALLON OF C A PITA L

C IT Y P R IC E S . THE SCHEME WOULD COST ABOUT $ 2 8 M ILLIO N IN

1 9 7 4 - 7 5 . THE COOMBS TASK FORCE SUGGESTED THAT THE S U B S ID Y

BE A B O L ISH E D , AND WE WOULD CERTAINLY HAVE BEEN ADOPTING THAT

SUGGESTION IN THE COMING BUDGET. WE SHALL IN FACT NOW ADOPT

IT WITHOUT FURTHER DELAY, WITH EFFECT FROM 1 AUGUST 1 9 7 4 .

AUSTRALIAN PU B L IC S E R V IC E :

IN 1 9 7 4 - 7 5 WE INTEND TO APPLY A C E IL IN G INCREASE

OF 2 . 6 PER CENT ON THE GROWTH OF F U L L -T IM E STA FF EMPLOYED

UNDER TIIE PUBLIC SER V IC E A C T. AFTER ALLOWANCE FOR AN

INCREASE IN THE NUMBER OF STA FF EXPECTED TO BE ON VARIOUS

FORMS OF LEAVE, THE C E IL IN G INCREASE I N . 1 9 7 4 - 7 5 ON TOTAL

OPERATIVE STAFF EMPLOYED UNDER TIIE P U B L IC SER V IC E ACT

WILL BE 1 PER CENT.

THESE STA FF C E IL IN G S DO NOT OF COURSE TAKE INTO

ACCOUNT ANY TRANSFER OF GOVERNMENT EMPLOYEES INTO OR OUT

OF THE AUSTRALIAN PU B L IC S E R V IC E .

THE FIG U R E OF 2 . 6 PER CENT COMPARES WITH AN

AVERAGE COMPOUND GROWTH RATE FOR THE PER IO D JUNE 1 9 6 2 TO

JUNE 1 9 7 2 - THE LAST TEN YEARS OF LIBERAL-COUNTRY PARTY

GOVERNMENT - FOR F U L L -T IM E STA FF EMPLOYED UNDER THE PU B L IC

SER V IC E ACT OF 3 . 8 7 PER CENT.

. . . / 1 2

THE STRINGENT RESTRAINT ON THE GROWTH OF STA FF

- NUMBERS IN THE AUSTRALIAN PUBLIC SER VICE WILL BE REFLECTED

NOT ONLY IN SALARY C O S T S , BUT ALSO IN NON-SALARY DEPARTMENTAL

AD M IN ISTR A TIV E C O S T S .

A S IM IL A R LEVEL OF RESTR AINT WILL BE A P P L IE D TO

STA FF NUMBERS EMPLOYED BY AUTH O RITIES THAT DO NOT COME

UNDER THE PUBLIC SER V IC E A C T.

DEFENCE PROGRAM:

IN THE DEFENCE F I E L D , FURTHER ECONOMIES W ILL BE

ACHIEVED IN C IV IL IA N MANPOWER. AS ANNOUNCED IN AUGUST 1 9 7 3 .

A MAJOR REDUCTION IN C IV IL IA N MANPOWER I S BEIN G MADE IN THE

DEPARTMENTS OF DEFENCE AND SUPPLY DURING THE CURRENT YEAR

1 9 7 3 / 7 4 . T H IS LARGE SAVING I S BEIN G ACHIEVED MAINLY BY

ECONOM IES, AND THROUGH IMPROVED MANAGEMENT. IT HAS ALLOWED

RE-ALLOCATION OF AVAILABLE FUNDS TO HIGHER DEFENCE P R IO R IT IE S

INCLUDING E SS E N T IA L NEW F A C IL IT IE S AND E Q U IPM E N T S. PLANS

FOR THE 1 9 7 4 / 7 5 BUDGET AS PREVIOUSLY ANNOUNCED IN DECEMBER

1 9 7 3 ENVISAG E A FURTHER REDUCTION IN C I V IL IA N EMPLOYMENT IN

THE DEFENCE DEPARTMENT OF ABOUT 1 5 0 0 , EVEN THOUGH

L E G ISL A T IO N TO IMPLEMENT THE DEFENCE R E -O R G A N ISA T IO N HAS BEEN

DELAYED BY THE PROROGUING OF PARLIAM ENT.

IN THE M UNITIONS F A C T O R IE S , THE REDUCED SCALE OF

PRODUCTION NOW NECESSARY FOR DEFENCE PURPO SES WILL ALLOW THE

RELEASE TO THE C IV IL IA N WORKFORCE OF A SU B ST A N T IA L NUMBER OF

WORKERS INCLUDING MANY WITH S K IL L S SCARCE IN THE PRESENT TIGHT

EMPLOYMENT S IT U A T IO N . T H IS SURPLUS OF LABOUR OVER THAT

. . /l 3

13

E SS E N T IA L TO PROVIDE THE S E R V IC E S ' REQUIREMENTS FOR M UNITIONS

I S NOT A NEW SIT U A T IO N BUT I S ONE V/HICH SHOULD HAVE BEEN FACED

LONG AGO BY THE PREVIO US COALITION GOVERNMENT. A S IM IL A R BUT

MUCH L E SS SEVERE S IT U A T IO N A P P L IE S IN THE R & D ESTABLISHM ENTS

AND THERE MAY BE A SMALL RESIDUAL PROBLEM IN THE SHORT TERM

AT WILLIAMSTOWN NAVAL DOCKYARD.

ANY REDUCTIONS IN AUSTRALIAN GOVERNMENT EMPLOYMENT

WILL BE MADE AS FAR AS PRACTICAL BY NOT REPLACING THE NORMAL

WASTAGE OF PERSONNEL. RETRENCHMENTS W IL L , HOWEVER, BECOME

NECESSARY IN CERTAIN AREAS - FOR ONE THING TO KEEP THE RIGHT

SORT OF BALANCE IN EMPLOYMENT. WHERE D IS M IS S A L S BECOME

NECESSARY THE GOVERNMENT WILL ENSURE THAT S T E P S ARE TAKEN

TO HELP THE IN D IV ID U A L CONCERNED TO MOVE INTO OTHER

EMPLOYMENT, INCLUDING SOME FIN A N C IA L A SSIST A N C E AND

RETRAINING WHERE NECESSAR Y. I MIGHT ADD THAT THE GOVERNMENT

NOW H A S, FOR C O N SID E R A T IO N , A REPORT OF AN INTERDEPARTMENTAL

COMMITTEE, SET T IN G OUT G U ID E L IN E S FOR A SSIST A N C E FOR AUSTRALIAN

GOVERNMENT EMPLOYEES WHO BECOME REDUNDANT AND WOULD MAKE IT S

D E C IS IO N ON THE P R O V IS IO N S OF T H IS REPORT BEFORE D IS M IS S A L S

T /X E PL A C E .

A REVIEW OF THE ARMY'S REQUIREMENTS FOR LIGHT

OBSERVATION HELICOPTERS HAS BEEN COMPLETED AND THE PRODUCTION

PROGRAM WILL BE REDUCED FROM 7 5 TO 5 6 M ILITARY A IR C R A FT .

AS A CONSEQUENCE PROPOSED ASSO C IA TED PRODUCTION OF 1 1 6

HELICOPTERS WILL NOT NOW BE UNDERTAKEN. THE OVERALL SAVING

IN THE PROJECT WILL BE ABOUT 3 1 2 M ILLION OVER Till·' NEXT FIV E

. . . / 1 4

14

Y E A R S. CONSEQUENTIAL EFFECTS ON EMPLOYMENT AT COMMONWEALTH

AIRCRAFT CORPORATION W-ILL -BE- EXAMINED - IN ' THE" CONTEXT OF AN

OVERALL R A T IO N A L ISA T IO N OF THE AIRCRAFT IN D U ST R Y .

I EM PH ASISE THAT THE FOREGOING ARE ONLY EXAMPLES

AND DO NOT CONSTITUTE A COMPREHENSIVE L IS T OF D E C I S I O N S .

THAT MUST AWAIT THE PREPARATION OF THE 1 9 7 4 / 7 5 BUDGET.

BUT THE EXAMPLES I HAVE G IVEN AR E, I B E L IE V E , S U F F IC IE N T TO

DEMONSTRATE THE STRINGENCY OF THE APPROACH THE AUSTRALIAN

GOVERNMENT WILL BE TAKING AT THAT T IM E .

AS REGARDS EXPENDITURE PROPOSALS INVOLVING NEW

OR ADD ITIO NAL S P E C IF IC PURPOSE PAYMENTS BY THE AUSTRALIAN

GOVERNMENT TO THE S T A T E S , WE WILL ALSO NEED TO APPLY ST R IC T

T E S T S , BOTH AS TO HOW THE PROPOSALS MEASURE UP IN TERMS OF

NATIONAL IN T E R E ST S AND AS TO T IM IN G , BEFORE WE CAN ·

CONTEMPLATE COMMITTING OURSELVES TO THEM.

I CAN, HOWEVER, AT T H IS PO IN T IN D IC A T E OUR ■

PROPOSALS WITH RESPECT TO ROADS AND WELFARE H O USIN G .

NO DOUBT YOU HAVE ALL SEEN THE BUREAU OF ROADS'

RECENT REPORT ON "ROADS IN A U S T R A L IA " . T H IS RECOMMENDS

THE PR O V ISIO N OF AUSTRALIAN GOVERNMENT A SSIST A N C E FOR ROADS

OVER THE NEXT F IV E Y EA R S.

WE HAVE DECIDED HOWEVER TO RESTR IC T THE PER IO D

OF THE NEXT ROAD A S S IS T A N C E L E G ISL A T IO N TO THREE Y E A R S .

OVER THE NEXT. 1 8 MONTHS WE SHALL BE WORKING TO R A T IO N A L IS E

OUR SEPARATE ROAD AND URBAN TRANSPORT A SSIST A N C E INTO A

CLOSELY CO-ORDINATED AND INTEGRATED SET OF ARRANGEMENTS.

. . . 1 5

15

AN IMPORTANT S T E P IN T H IS REGARD I S THE ACTION WE HAVE

ALREADY TAKEN TO COMBINE THE AUSTRALIAN GOVERNMENT'S MAJOR

TRANSPORT R E S P O N S IB IL IT IE S UNDER ONE M IN IST E R AND W ITHIN ONE

DEPARTMENT. T H IS WILL FA C IL IT A T E E F F IC IE N T ALLOCATION OF .

RESOURCES, BOTH BETWEEN THE VARIOUS TRANSPORT MODES AND

BETWEEN TRANSPORT AND OTHER AREAS OF INVESTM ENT, AND WE

CAN NOW PROCEED MORE CERTAINLY TOWARDS THAT O B JE C T IV E . MY

GOVERNMENT HOPES TO LEG ISLATE BY THE END OF 1 9 7 5 FOR A NEW

APPROACH TO TRANSPORT A SSIST A N C E FOR THE STATES TO COMMENCE

IN JULY 1 9 7 7 . A P R IN C IP A L AIM IN OUR IN T E N T IO N TO

LEG ISLATE FOR THE 1 9 7 7 TO 1 9 8 0 PERIOD 1 8 MONTHS BEFORE IT S

COMMENCEMENT I S TO A S S IS T YOU WITH YOUR FORWARD PL A N N IN G .

IN THE MEANTIME, THE NEW ROADS A S S IS T A N C E L E G ISL A T IO N

WILL BE INTRODUCED IN THE F IR S T S E S S IO N OF THE NEW PARLIAMENT

AND WILL APPROPRIATE A TOTAL OF S i , 1 2 0 M IL L IO N AUSTRALIAN

GOVERNMENT A SSIST A N C E OVER THE NEXT THREE YEARS FOR ROADS

IN THE S T A T E S . T H IS I S L E SS THAN THE AMOUNT OF S i , 3 4 5 M ILLIO N

THE BUREAU OF ROADS RECOMMENDED FOR T H IS P E R IO D ; BUT THE

B U R E A U 'S REPORT MUST BE LOOKED AT IN A TOTAL ECONOMIC

CONTEXT AND IN THE LIGHT OF ALL OUR P R IO R IT IE S RATHER THAN

IN TERMS OF ROADS OR TRANSPORT IN IS O L A T IO N . THE $ 1 , 1 2 0

M ILLIO N WILL BE MADE UP OF $ 3 4 8 M ILLION FOR 1 9 7 4 - 7 5 ,

3 3 6 7 M IL L IO N FOR 1 9 7 5 - 7 6 AND $ 4 0 5 M ILLION FOR 1 9 7 6 - 7 7 .

IN MY ELECTION PO LICY SPEECH I ANNOUNCED THAT THE

AUSTRALIAN GOVERNMENT HAD DECIDED TO PR ESS AHEAD WITH THE

CONSTRUCTION OF A NATIONAL ROADS SYSTEM IN THOSE AREAS WHICH

. . . . / 1 6

1 6 .

FALL W ITHIN IT S OWN CO NSTITUTIO NAL R E S P O N S IB IL IT IE S AND

.TH A T , IN PA R T IC U LA R , IT WOULD IN FUTURE TAKE R E S P O N S IB IL IT Y

FOR THE WHOLE COST OF CONSTRUCTING AND M AINTAINING THE

P R IN C IP A L ROAD BETWEEN STATE C A PIT A L S AND OF EXPORT ROADS

TO AIRPO RTS AND SE A PO R T S. OUT OF THE TOTAL OF S I , 1 2 0

M ILLION PREVIOUSLY MENTIONED, WE WILL ALLOCATE A SUM OF

*400 M ILLION OVER THE NEXT THREE YEARS TO EMBARK ON T H IS

MAJOR NEW I N I T I A T I V E . ,

FULL D E T A IL S OF THE PROPOSED NEW PROGRAM OF

A SSIST A N C E FOR ROADS WILL BE CONVEYED TO YOU SHORTLY.

IN DETERM INING THE OVERALL AMOUNT THAT WE WOULD

BE ABLE TO MAKE AVAILABLE FOR ROADS WE HAVE, AS I IN D IC A T E D ,

HAD TO TAKE INTO CONSIDERATION OTHER TRANSPORT PROGRAMS,

PARTICULARLY IN THE URBAN A R EA S. WE SEE IMPROVED PU B L IC

TRANSPORT AS E S S E N T IA L FOR IMPROVEMENT O F 'T llE LOT OF OUR

C IT Y DWELLERS, AND WE PROPOSE TO PR E SS ON WITH THE URBAN

PU BLIC TRANSPORT PROGRAMS WE HAVE IN I T I A T E D . THE

TREASURER STATED IN H IS BUDGET SPEECH LAST YEAR THAT IT

COULD BE EXPECTED THAT OUR OUTLAYS IN T H IS F IE L D WILL .

INCREASE RAPIDLY IN 1 9 7 4 - 7 5 AND BEYOND AS T H IS MAJOR NEW

CAPITAL WORKS PROGRAM GETS UNDER WAY. THAT PROSPECT S T IL L

HOLDS. WE ALSO S E E THE RAILWAYS AS HAVING A V IT A L ROLE IN

OUR ECONOMY, BUT THEY MUST BE MODERNISED AND MADE MORE

E F F I C I E N T . SO WE ALSO INTEND TO PRESS AHEAD WITH OUR

RAILWAY PROGRAMS. IN T H IS REGARD, I RECALL THAT ONLY

RECENTLY I SIG N ED AGREEMENTS WITH THE PREMIER OF SOUTH

• . . . / 1 7

17

AUSTRALIA FOR THE NEW STANDARD GAUGE RAILWAY L IN E TO A L IC E

S P R IN G S AND A D E L A ID E .

THE GOVERNMENT I S DETERMINED TO ENSURE THAT L E S S

PR IV IL E G E D F A M IL IE S IN OUR SO C IETY ARE NOT DEN IED THE CHANCE

TO L IV E IN ADEQUATE HOMES, AND THAT MANY MORE LOW-INCOME

F A M IL IE S ARE G IVEN THE OPPORTUNITY TO BUY HOMES OF T H E IR

OWN. OUR PRESENT P O L IC IE S ARE DIRECTED TO B R IN G IN G ABOUT A

MORE BALANCED S IT U A T IO N IN THE HOUSING INDUSTRY AS A WHOLE.

THEY ARE DESIGNED BOTH TO EASE THE PRESSURE ON RESOURCES

AND THE CONSEQUENTIAL B ID D IN G UP OF COSTS AND P R IC E S IN

THE INDUSTRY AND TO MAKE ROOM FOR A MORE REASONABLE LEVEL

OF DWELLING CONSTRUCTION BY THE PUBLIC SEC TO R. NOT ALL

THE STATES WERE A B L E , IN 1 9 7 3 - 7 4 , TO E FFE C T IV EL Y USE THE

$ 2 1 8 . 5 M ILLION ADVANCED TO THEM UNDER THE 1 9 7 3 HOUSING

AGREEMENT. AS A R E SU L T , SOME MONEYS PROVIDED UNDER THE

AGREEMENT TORE NOT USED AT ALL - AND WILL THEREFORE REMAIN

AVAILABLE FOR USE IN 1 9 7 4 - 7 5 .

SOME FUNDS WERE ALSO U S E D , IN 1 9 7 3 - 7 4 , AS IN

PREVIO US Y E A R S, TO PURCHASE LAND FOR FUTURE USE BY STATE

HOUSING A U T H O R IT IE S . IN THE YEAR AHEAD, HOWEVER, WE THINK

THAT ADVANTAGE SHOULD BE TAKEN OF THE E A S IE R CO N D ITIO N S

LIK ELY TO DEVELOP TO SWITCH THE BALANCE OF A C T IV IT Y FROM

LAND PURCHASE TOWARDS INCREASED B U IL D IN G . AS PART OF THE

B /T T L E AGAINST IN FL A T IO N MY GOVERNMENT HAS MADE AVAILABLE AND

I S OFFERING FUNDS TO YOU TO SET UP LAND COM M ISSIONS TO

REDUCE LAND P R IC E S BY MAKING LAND AVAILABLE AT C O ST . WHILE

. . . . / 1 8

18

, ...

WE HAVE RECOGNISED THAT MONEY FOR WELFARE HOUSING SHOULD BE

MADE AVAILABLE THROUGH THE HOUSING AGREEMENT AT AN INTEREST

RATE OF ONLY 4 PER C E N T , IT WOULD NOT BE APPROPRIATE FOR

T H IS MONEY TO BE USED FOR THE PURCHASE AND DEVELOPMENT

OF LARGE ESTATES FOR SALE TO PEOPLE WHO WOULD NOT

QUALIFY UNDER THE MEANS TEST FOR WELFARE H O U SIN G . WE

LOOK FORWARD IN THE FUTURE TO THE STATE HOUSING A U T H O R IT IES

O BTAINING MOST, I F NOT A L L , OF TH EIR LAND REQUIREMENTS

THROUGH THE LAND C O M M ISSIO NS.

IN THE CIRCUMSTANCES WE ARE PRO PO SING TO MAKE

ADVANCES OF $ 2 3 5 M ILLIO N UNDER THE AGREEMENT IN 1 9 7 4 - 7 5

IN A D D ITIO N TO THE AMOUNT CARRIED FORWARD FROM 1 9 7 3 - 7 4 .

T H IS W IL L , IN FA C T , MEAN A SUBSTANTIAL INCR EA SE IN THE

FUNDS AVAILABLE TO THE STATES FOR EXPENDITURE ON WELFARE

H O U SIN G . HOWEVER, IN VIEW OF THE L IM IT A T IO N S WHICH THE

HOUSING AGREEMENT PRO VIDES IN RESPECT OF THE FUNDS FOR

THE HOME BUILDERS ACCOUNT, IT I S PROPOSED TO D IS C U S S WITH

THE STATES AN AMENDMENT TO THE AGREEMENT WHICH WOULD

PERMIT A HIGHER PROPORTION OF AVAILABLE FUNDS TO BE

ALLOCATED TO THE HOME BUILDERS ACCOUNT WHEN CIRCUMSTANCES

WARRANT. ·

WE THUS LOOK FORWARD IN 1 9 7 4 - 7 5 TO THE COMPLETION

OF CONSIDERABLY MORE DWELLINGS IN THE PU B L IC SECTOR THAN IN

1 9 7 3 - 7 4 . BUT I SHOULD ALSO SAY THAT, IN THE LIGHT OP

DEVELOPMENTS IN THE INDUSTRY AS A WHOLE AS THE YEAR UNFO LDS,

INCLUDING THE A V A IL A B IL IT Y OF RESOURCES FOR HOUSING CONSTRUCTION

AND THE A B IL IT Y OF THE STATES TO PUT FURTHER FUNDS TO PRODUCTIVE

USE IN WELFARE H O U SIN G , WE STAND READY TO CONSULT FURTHER

WITH THE STA TES ON THE P R O V ISIO N OF A D D ITIO N A L ADVANCES.

. . . / 1 9

1 9 .

THE STATE GOVERNMENTS MUST ALSO PLAY THEIR PARTS

IN BEATING IN F L A T IO N . MANY OF THE PREM IERS UNDERTOOK,

DURING THE ELECTION CAMPAIGN, TO CO-OPERATE WITH AN L -C P

GOVERNMENT, HAD THAT BEEN RETURNED, IN THE FIGHT AGAINST

IN F L A T IO N . THE FIGHT I S ON AND I HOPE THAT THE FULL

CO-OPERATION AND UNDERSTANDING OF THE STATE GOVERNMENTS -

FOR EXAMPLE, IN THE CONTROL OF LAND P R IC E S - WILL BE

FORTHCOMING.

IN 1 9 7 3 - 7 4 TOTAL PAYMENTS TO THE STA TES GREW

R A P ID L Y . TAKING ALL FORMS OF PAYMENTS TO THE STATES

TOGETHER WITH THE STATE GOVERNMENTS' LOAN COUNCIL PROGRAMS,

THE INCR EA SE I S ESTIM ATED AT OVER 2 0 PER CENT. EVEN

ALLOWING FOR THE EFFECTS OF INC R EA SES IN C O S T S , T H IS

REPRESENTS A VERY SUBSTANTIAL IN C R E A SE .

THE CRUCIAL Q U E ST IO N , OF COURSE, I S T H IS :

TO WHAT EXTENT HAVE THESE LARGE IN C R EA SE S IN FUNDS BEEN

TRANSLATED INTO REAL IMPROVEMENTS IN THE STANDARDS OF

ST A T E -PR O V ID E D SE R V IC E S AND F A C I L I T I E S ? I T SEEMS THAT,

PARTICULARLY IN THE F IE L D S OF HOUSING AND CONSTRUCTION,

RESOURCES HAVE BEEN OVERSTRETCHED AND IN FL A T IO N HAS EATEN

HEAVILY INTO THE MONEY SUMS A V A IL A B L E . BECAUSE OF

SHORTAGES OF LABOUR AND MATERIALS IN THESE A R E A S, THE STA TES

AND TH EIR A U T H O R IT IES HAVE IN SOME CASES BEEN UNABLE TO USE

ALL THE FUNDS AVAILABLE TO THEM.

THE PRESENT REVENUE A S S IS T A N C E ARRANGEMENTS

\

BETWEEN THE AUSTRALIAN AND STATE GOVERNMENTS WERE .../20

2 0 .

ORIGINALLY SETTLED IN JUNE 1 9 7 0 AND WERE INTENDED TO APPLY

OVER THE F IV E YEARS 1 9 7 0 - 7 1 TO 1 9 7 4 - 7 5 . MY GOVERNMENT

ACCEPTS THE OBLIG ATIO N TO REVIEW THE ARRANGEMENTS BEFORE

THE END OF 1 9 7 4 - 7 5 WITH A VIEW TO DETERMINING WHAT CHANGES

IN THEM, I F ANY, SHOULD APPLY FROM 1 9 7 5 - 7 6 .

IN THE LIGHT OF WHAT I HAVE S A ID ABOUT ACTION

PROPOSED IN THE AUSTRALIAN GOVERNMENT'S EXPENDITURE PROGRAMS,

WE HAVE G IVEN CLOSE ATTENTION TO WHAT WE CO NSIDER I S BOTH

APPROPRIATE AND F E A S IB L E BY WAY OF ADD ITIO N A L REVENUE

A S S IS T A N C E , AND SUPPORT FOR BORROWING PROGRAMS, FOR STATE

GOVERNMENTS.

ON THE REVENUE S I D E , I SHOULD F IR S T E X PR E SS

OUR A PPR E C IA T IO N OF THE MATERIAL YOU HAVE ALL PROVIDED ON

YOUR F IN A N C IA L P O S IT IO N S T H IS YEAR, AND YOUR PR O SPE C TIV E

BUDGETARY P O S IT IO N S IN 1 9 7 4 - 7 5 . . ..

ALREADY, BOTH AS A RESULT OF THE OPERATION OF .

THE FIN A N C IA L A S S IS T A N C E GRANTS FORMULA AND OF THE S P E C IA L

FIN A N C IA L A S S IS T A N C E WHICH WE AGREED TO PROVIDE TO THE

STATES T H IS YEAR, TOTAL F IN A N C IA L A S S IS T A N C E GRANTS IN

1 9 7 3 - 7 4 ARE ESTIM ATED TO SHOW AN INCREASE ON 1 9 7 2 - 7 3 OF

$ 2 0 8 M IL L IO N . WE HAVE CONCLUDED THAT THERE I S 'N O CASE

FOR ANY ADD ITIO NAL REVENUE A SSIST A N C E T H IS YEAR. WHILE

MOST STATES APPEAR LIK ELY TO INCUR BUDGET D E F IC IT S T H IS

YEAR, THE EXTENT OF THESE APPEARS TO US TO BE MANAGEABLE

G IVEN THE OVERALL ACCUMULATED P O S IT IO N S ON REVENUE AND . . / 2 1

2 1 .

LOAN ACCOUNTS COMBINED AS AT 3 0 JUNE N E X T .

FOR 1 9 7 4 - 7 5 , THE OUTLOOK, AS PRESENTLY REVEALED

BY THE INFORMATION PR O V ID E D , I S FOR SU B ST A N T IA L D E F IC IT S IN

THE ABSENCE OF ANY NEW TAXES OR CHARGES, AND BEFORE ALLOWING

FOR WAGE INC R EA SES THAT CANNOT BE FORESEEN BUT WHICH WILL

OCCUR THROUGH THE YEAR. I T I S HIGHLY RELEVANT THAT A

MAJOR ELEMENT IN THE PRESENT AND PR O SPE C TIV E BUDGETARY

P O S IT IO N S OF THE STATES I S TO BE FOUND IN THE L O SSE S

BEING MADE BY TH EIR B U S IN E S S UNDERTAKINGS - PARTICULARLY

TH EIR RAILW AYS. HOWEVER THAT MAY B E , WE ARE LOOKING TO

THE STATES TO CLOSE THOSE GAPS FROM TH EIR OWN RESO U RCES.

‘ THOSE RESOURCES, OF COURSE, INCLUDE VERY

SU BSTANTIAL INCR EA SES IN THE GENERAL REVENUE GRANTS PROVIDED

UNDER THE FORMULA. EVEN S O , WE R E A L ISE THAT THE CLOSING

OF THE S T A T E S ' PRO SPEC TIV E REVENUE GAPS WILL NOT BE E A S Y .

NOR HAVE MANY OF THE D E C IS IO N S WE HAVE HAD TO TAKE DURING

THE PA ST EIGHTEEN MONTHS BEEN E A S Y . D E C IS IO N S TO ·

TERMINATE THE SUPERPHOSPHATE BOUNTY, TO PHASE OUT THE

SU B SID Y ON THE PRODUCTION OF DAIRY PRODUCTS, TO

TERMINATE THE INVESTMENT ALLOWANCES, TO REDUCE T A R IF F S , TO

REVALUE THE CURRENCY - NONE OF THESE D E C IS IO N S WAS E A S Y .

WE TOOK THEM BECAUSE THE PREVIOUSLY P R E V A IL IN G S IT U A T IO N

IN EACH CASE REPRESENTED A DISTO R TIO N OF THE ECONOMY AWAY

FROM THE PU B L IC IN TER EST GENERALLY AND TOWARDS A SECTIONAL

IN T E R E S T . WE ACTED IN THE PUBLIC IN T E R E ST ; AND WE LOOK

. . / 2 2

22

TO THE STATE GOVERNMENTS TO DO LIKEW ISE WITHIN TH EIR OWN

DOM AINS.

FOR EXAMPLE, A MOMENT AGO, I REFERRED TO THE

L O SSE S OF STATE RAILW AYS. LET ME ADD A FEW WORDS.

UNDER OUR URBAN PU B L IC TRANSPORT PROGRAM AND

IN OTHER WAYS, WE WILL BE ENDEAVOURING TO HELP IMPROVE

A U S T R A L IA 'S RAILW AYS. WE HOPE YOU WILL COMPLEMENT OUR

EFFORTS BY LOOKING CAREFULLY AT THE OPERATING PROCEDURES

AND E X PE N SES OF YOUR RAILW AYS. WE WOULD BE PREPARED TO

PROVIDE FUNDS FOR SUCH IN V E ST IG A T IO N S THROUGH OUR

PROPOSED TRANSPORT RESEARCH AND DEVELOPMENT PROGRAMS.

AT THE PRESENT TIME THE STATE RAILWAY SYSTEMS

ARE I N E F F I C I E N T , OUTDATED AND FACING ENORMOUS D E F I C I T S .

T H IS I S WHY I OFFERED TO ACCEPT R E S P O N S IB IL IT Y FOR THE

RAILWAYS OF ANY STATE THAT WAS PREPARED TO TRANSFER

THEM. THAT OFFER S T IL L STANDS AND WE WOULD HOPE THAT IN

THE IN T E R E ST S OF E F F IC IE N T TRANSPORT THROUGHOUT A U STRALIA

THE GOVERNMENTS OF V IC T O R IA AND QUEENSLAND WILL

RECONSIDER TH EIR D E C IS IO N S NOT TO D IS C U S S T H IS MATTER

WITH U S .

I HAVE SEEN RECENT NEWSPAPER REPORTS OF STATEMENTS

BY MR M O RR IS, N . S . W . M IN IS T E R FOR TRANSPORT, THAT H IS

RAILWAY SYSTEM WILL HAVE A D E F IC IT T H IS YEAR OF

S 1 2 6 M IL L IO N . TO OVERCOME T H IS PROBLEM HE IN D IC A TE D IT

WOULD BE NECESSARY TO ATTRACT MORE B U S IN E S S AND SEVERELY

R A T IO N A L ISE R A IL OPERATIONS WHICH ARE NOT SOCIALLY OR

. . . / 2 3

2 3 .

ECONOMICALLY VIABLE - AT THE SAME TIME MR MORRIS

PLEDGED THAT T H IS WOULD NOT INVOLVE THE SACKING OR

RETRENCHMENT OF S T A F F . I BEL IE V E T H IS I S A STE P IN THE

RIGHT D IR E C T IO N . RAILWAY D E F IC IT S OF T H IS MAGNITUDE ARE

UNACCEPTABLE AT ANY TIME BUT MORE PARTICULARLY SO IN THE

PRESENT CLIM ATE.

WHAT I HAVE S A ID EARLIER B O IL S DOWN TO SAYING THAT,

WHILE WE DO NOT INTEND TO PROVIDE ANY A S S IS T A N C E OVER AND

ABOVE THAT ALREADY COMMITTED, WE ARE STANDING BY OUR

PRESENT COMMITMENTS.

ONE OF THESE PRESENT COMMITMENTS BY WHICH WE

STAND I S TO HELP ALLEVIATE THE EFFECTS OF NATURAL

D IS A S T E R S . THESE CAN THROW UNEXPECTED F IN A N C IA L BURDENS

ON THE STATES AND THEIR A U T H O R IT IE S . I WROTE TO THE

PREMIERS E A R L IE R T H IS YEAR SETTING O U T . OUR PO LICY IN T H IS

AREA. I REAFFIRM THAT P O L IC Y . I T PRO VIDES VERY REAL

PROTECTION FOR THE STATES AGAINST WHAT COULD OTHERWISE

BE INTOLERABLE FIN A N C IA L BURDENS FOR THEM. IN IL LU ST R A T IO N

OF T H I S , I PO IN T OUT THAT WE HAVE LEG ISLATED FOR PAYMENT

OF UP TO $ 7 1 . 5 M ILLION TO QUEENSLAND AND NEW SOUTH WALES

FOR R E L IE F AND RESTORATION MEASURES FOLLOWING THE FLOODS

IN THOSE STATES EARLIER T H IS YEAR, AND HAVE ALREADY

PROVIDED SOME $ 2 0 M ILLIO N OF T H I S . T H IS A S S IS T A N C E I S ,

OF COURSE, IN A D D ITIO N TO THE QUITE LARGE COSTS OF MAKING

AVAILABLE MEMBERS OF THE ARMED SER V IC ES AND THE C IV IL

DEFENCE ORGANISATION AND TH EIR EQUIPMENT FOR EMERGENCY

. . . / 2 4

24

RESCUE AND R E L IE F O PERATIO N S.

I MENTIONED EARLIER THE ADJUSTMENTS WHICH WE

MADE TO GENERAL PURPOSE FUNDS PROVIDED TO THE STATES IN

1 9 7 3 - 7 4 TO O FFSET THE COSTS TO THE AUSTRALIAN GOVERNMENT'S

BUDGET AND THE G A IN S TO THE ST A T E S' B U D G E TS, RESULTING

FROM OUR NEW OR EXPANDED COMMITMENTS IN THE F IE L D S OF

WELFARE HOUSING AND TERTIARY EDUCATIO N. THESE ADJUSTMENTS

WERE MADE IN PURSUANCE OF A GENERAL P R IN C IP L E WHICH

MIGHT, IN SHORTHAND TERMS, BE REFERRED TO AS THE

"O FFSETS P R IN C IP L E " AND WHICH I OUTLINED IN MY OPENING

SPEECH AT THE PR E M IE R S' CONFERENCE LAST Y E A R . THE

AUSTRALIAN GOVERNMENT I S FIRMLY COMMITTED TO T H IS P R IN C IP L E

AND WILL PURSUE I T S A PPL IC A T IO N WHEREVER A P P R O P R IA T E . I

HAVE INFORMED PREM IERS OF OUR IN T E N T IO N TO DO SO IN

RESPECT OF I N I T I A T I V E S WE ARE TAKING IN THE F IE L D S OF

ABORIGINAL A F F A IR S AND A SSIST A N C E FOR DESERTED W IV E S , AND

I EXPECT THAT FURTHER CASES COULD A R IS E AS WE DEVELOP OUR

P O L IC IE S IN OTHER A R E A S.

IN CONSIDERING THE S I Z E OF THE LOAN COUNCIL

BORROWING PROGRAMS WE COULD SUPPO RT, WE HAVE BEEN VERY

CONSCIOUS THAT MANY ,OF THE PROJECTS - BOTH THOSE ALREADY

UNDER WAY AND NEW PRO JECTS PROPOSED - WHICH THE BORROWING

PROGRAMS SUBM ITTED BY THE STATES AND T H EIR A U T H O R IT IES

WOULD COVER WOULD BE VERY D E S IR A B L E . IN D E E D , PROGRESS

WITH MANY OF THEM I S A NECESSARY IN G R ED IEN T FOR

ACHIEVEMENT OF OUR O B JE C T IV E S IN SUCH VIT A L L Y IMPORTANT

. . / 2 5

2 5 .

AREAS AS EDUCATIO N, HEALTH, URBAN PU B L IC TRANSPORTATION

AND URBAN AND REGIONAL DEVELOPMENT GENERALLY. WE WILL

BE PRO VIDING SUBSTANTIALLY INCREASED FUNDS IN THE COMING

FIN A N C IA L YEAR, BY WAY OF S P E C IF IC PURPOSE PAYMENTS,

UNDER THE NEW PROGRAMS WE HAVE IN IT IA T E D IN THESE A R EA S,

AND WE WILL BE AIM ING TO PR E SS AHEAD WITH THESE IN

CO-OPERATION WITH THE S T A T E S .

VE HAVE ALL RECOGNISED THAT CERTAIN ITEMS

HAVE AN IN D ISP U T A B L E PR IO R IT Y AND URGENCY. NONE OF US

CAN DOUBT THAT IT I S ONE OF OUR MOST P R E S S IN G O BLIG ATIO NS

TO INCREASE THE SUPPLY OF SERVICED LAND FOR PR O SPE C TIV E

HOME B U IL D E R S . THE P R IC E OF LAND FOR R E S ID E N T IA L

B U IL D IN G MUST BE REDUCED. THERE I S NO D IS P U T E THAT A

SU ST A IN E D COLLABORATIVE EFFORT I S REQUIRED TO ELIM IN A T E

THE SEWERAGE BACKLOG IN OUR MAJOR C I T I E S AND~TOWNS. " I T *~"^V

I S SURELY NOT A MATTER OF DEBATE THAT OUR INADEQUATE .

PU B L IC TRANSPORT>SYSTEMS NEED IMMEDIATE IMPROVEMENT.

ON ALL OF THESE MATTERS THE O B JE C T IV E S OF O UR

R E SPE C T IV E GOVERNMENTS ARE EVIDENTLY IN HARMONY. OUR

MUTUAL ASSESSM ENT OF P R IO R IT IE S SHOULD BE REFLECTED IN

THE WAY WE SPEND THE FUNDS A V A IL A B L E . WHERE WE HAVE

PROVIDED ADD ITIO NAL FUNDS TO OVERCOME A BACKLOG S IT U A T IO N ,

SUCH AS E X IS T S WITH RESPECT TO SEWERAGE AND URBAN PU B L IC

TRANSPORT, THEN I AM SURE THAT YOU WILL WANT TO M AINTAIN

YOUR OWN EFFORT IN THESE F I E L D S .

AGAINST THAT BACKGROUND, WE ARE PREPARED TO

SUPPORT SOME INCREASE IN BOTH GOVERNMENT AND "LARGER AUTHORITY"

. . / 2 6

2 6 .

BORROWINGS.

IN B R IE F , OUR PROPOSAL FOR THE BORROWING

PROGRAMS FOR STATE WORKS AND THE "LARGER” SEMI-GOVERNMENTAL

BORROWING PROGRAMS I S THAT THE "B A SIC " PROGRAMS BE INCR EA SED

IN 1 9 7 4 - 7 5 BY 1 0 PER CENT. IN THE CASE OF THE BORROWING

PROGRAMS FOR STATE WORKS, T HI S WOULD BE BEFORE TAKING

ACCOUNT OF THE O FFSET S FOR TERTIARY EDU C A TIO N . IN

A D D IT IO N , WE ARE PREPARED TO SUPPORT S P E C IA L TEMPORARY

ALLOCATIONS FOR QUEENSLAND, IN BOTH THE GOVERNMENTAL

AND SEMI-GOVERNMENT A R E A S, FOR FLOOD RESTORATION WORK,

AND ALSO CERTAIN A D D IT IO N S TO THE "LARGER" A U T H O R IT IES

PROGRAMS FOR NEW SOUTH WALES AND WESTERN A U STRALIA - A

PERMANENT A D D ITIO N FOR NEW SOUTH WALES AND A S P E C IA L

TEMPORARY A D D IT IO N FOR WESTERN A U S T R A L IA .

IN FIGURE TERMS, T H IS MEANS THAT WE WILL

SU PPO RT, SUBJECT TO THE USUAL C O N D IT IO N S , A

STATE GOVERNMENT PROGRAM OF $ 9 3 5 M IL L IO N . T H IS C O N S IST S

OF A "B A S IC " PROGRAM OF $ 9 2 5 M IL L IO N , WHICH I S AN

INCREASE OF 1 0 PER CENT BEFORE TAKING ACCOUNT OF THE

OFFSETS. FOR TERTIARY EDUCATIO N, PLUS A S P E C IA L TEMPORARY

ALLOCATION FOR QUEENSLAND OF APPROXIMATELY $ 1 0 M ILLIO N

FOR FLOOD RESTORATION WORK.

THE "LARGER" A U TH O RITIES PROGRAM OF $ 6 3 6 M IL L IO N

WHICH WE PROPOSE C O N S IST S OF A "B A SIC " PROGRAM OF

$ 6 1 0 . 5 M ILLION - AN INQREASE OF 10 PER CENT - PLUS A

PERMANENT A D D ITIO N OF $ 1 0 MI LLI ON FOR NEW SOUTH WALES AND

SPE C IA L TEMPORARY A D D IT IO N S OF $ 9 . 6 M ILLIO N FOR QUEENSLAND

27

AND $ 6 M ILLIO N FOR WESTERN AUSTRALIA

IN A D D ITIO N STATES HAVE SUBM ITTED .

AN ESTIMATED "SMALLER" AUTH O RITIES BORROWING REQUIREMENT

OF $ 1 6 2 M IL L IO N , COMPARED WITH ESTIM ATED ACTUAL R A I S I N G S

T H IS YEAR OF $ 1 4 3 M IL L IO N ; IN L IN E WITH PAST P R A C T IC E , '

NO OVERALL L I M I T I S PROPOSED FOR THESE BORROWINGS.

D E T A IL S WILL BE CONVEYED IN THE LOAN COUNCIL

M EETINGS.

WHAT I HAVE S A ID ABOUT ALL THESE PROGRAMS,

WHETHER OURS OR THE S T A T E S , HAS BEEN AG A IN ST THE SET T IN G

THAT I MENTIONED EARLY IN MY STATEMENT - THAT GOVERNMENT

SPENDING MUST PLAY I T S PART IN THE PO L IC Y OF R E S T R A IN T .

I HAVE NO DOUBT THAT T H I S WILL BE ACKNOWLEDGED BY THE

PREMIERS AS IT I S BY U S .

HAVING S A ID THAT, I WANT TO TURN FIN A LLY TO

WHAT I S A ID IN CONCLUDING MY OPENING 'ADDRESS TO THE

PR E M IE R S’ CONFERENCE LAST YEAR.

I EXPRESSED THE HOPE THEN "THAT T H IS WILL BE

BOTH THE LAST OF THE O L D -STY LE PR E M IE R S' CONFERENCE AND

THE F IR S T OF A NEW T Y P E " .

I S A ID THEN, AND S T IL L B E L IE V E , THAT OUR E X IS T IN G

STR UCTURES' ARE INADEQUATE FOR "TRULY CO NSTRUCTIVE, TRULY

CO -O PERATIVE F E D E R A L ISM ". . '

DURING THE PAST 1 2 MONTHS WE HAVE WRITTEN TO EACH

OTHER IN GREATER DEPTH AND BREADTH THAN, I B E L IE V E IT WOULD

. . / 2 8

28

BE TRUE TO S A Y , PRIME M IN IST E R S AND PREM IERS HAVE DONE AT

ANY TIME S IN C E FEDERATIO N. OUR O FFIC E R S HAVE MET ON

MANY OCCASIONS AND SO ALSO HAVE OUR M I N I S T E R I A L COLLEAGUES

THERE ARE MANY AREAS WHERE WE HAVE FOUND

D IF F E R E N C E S , BUT THERE ARE MANY MORE IN WHICH WE HAVE

QUICKLY BEEN ABLE TO REACH AGREEMENT. AND I PAY TRIBUTE

TO ALL OF YOU FOR WHAT YOU HAVE DONE I N H ELPING US IN

THE NEW OUTREACHES OF GOVERNMENT TO SERVE THE PEOPLE

THROUGH COMMITTEES AND COMMISSIONS OF IN Q U IR Y AND THE

L I K E .

I LOOK TO CONTINUING CLOSE CONTACT AND

CO -O PERATIO N BETWEEN U S . SUCH CONTACT AND CO-OPERATION

EXTENDSACROSS THE F IE L D S OF HEALTH, EDU C A TIO N , H O USING,

TRANSPORT, LAND, THE ENVIRONMENT AND URBAN IMPROVEMENT

AS WELL AS THE IMPORTANT AREAS OF M INING AND OF ABORIGINAL

DEVELOPMENT.

I F WE ARE TO MAKE PROGRESS TOWARDS A COMMON

UNDERSTANDING AND A T T ITU D ES TOWARDS NATIONAL P R I O R I T I E S ,

IT WILL BE NECESSARY FOR US TO MAI NTAI N REGULAR CONTACT.

I LOOK TO CONSULTATION EITH ER AMONG OURSELVES OR, WITH

OUR AGREEMENT, AMONG THOSE OF OUR COLLEAGUES WHO ARE

CARRYING THE MAIN R E S P O N S IB IL IT Y , OR AT O FFIC E R L EV EL.

ONE PARTICULAR AREA I HAVE IN MIND I S THE

WELFARE AND ENVIRONMENT OF THOSE WHO L IV E IN OUR C I T I E S ,

AND PARTICULARLY OUR GREAT C A P IT A L S . WE WILL BE PROPOSING

THAT M IN IS T E R S AND O F F IC IA L S DEVOTE T H E IR ENERG IES DURING

THE REST OF T H I S YEAR TO A RENEWED C O -O PE R A T IV E ATTEMPT

. . . / 2 9

2 9 .

AT CLARIFYING IS S U E S ON WHICH CO -O PERATIVE ACTION ( S

E SSE N T IA L AND A D V ISIN G APPROPRIATE PROGRAMS.

LET US DEMONSTRATE TO THE PEOPLE WHOM WE ALL

SERVE THAT WE CAN TRANSCEND THE D IFFE R E N C E S WHICH

SEPARATE US AND SEEK TOGETHER A COMMON B A S I S FOR ACTION

ON IS S U E S THAT AFFECT EVERY C IT IZ E N