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Address to the Liberal party



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TREASURER

EMBARGO DELIVERY

PRESS RELEASE NO.

ADDRESS BY THE TREASURER, THE HON. J . HOWARD, MP

TO THE LIBERAL PARTY, NORTH SYDNEY CONFERENCE DINNER,

"THE HOUSE OF CHINA" RESTAURANT, CROW'S NEST, 7 .0 0 PM

SATURDAY, 24 MAY 1980

ADDRESS BY THE TREASURER, THE HON. J . HOWARD, MP,

TO THE LIBERAL PARTY, NORTH SYDNEY CONFERENCE DINNER,

"THE HOUSE OF CHINA" RESTAURANT, CRON'S NEST,

SATURDAY, 24 MAY 1980

I WELCOME THE OPPORTUNITY TONIGHT OF ADDRESSING TH IS

DINNER GATHERING OF THE NORTH SYDNEY CONFERENCE. IT IS

PARTICULARLY PLEASING TO SHARE THE PLATFORM WITH JOHN

SPENDER WHO, FOLLOWING A FIN E FAMILY P O L IT IC A L TR A D ITIO N ,

W IL L , BY THE END OF THE YEAR, BE THE MEMBER FOR NORTH

SYDNEY.

I AM SURE THAT HE WILL MAKE A NOTABLE CONTRIBUTION TO

THE COMMONWEALTH PARLIAMENT AND THE FEDERAL PARLIAMENTARY

LIBERAL PARTY AND I LOOK FORWARD TO WORKING WITH HIM IN

CANBERRA AND ALSO AS A 'NEXT DOOR NEIGHBOUR'.

THE AUTUMN SESSION WHICH HAS JUST CONCLUDED CONTAINED LESS

DEBATE ON ECONOMIC ISSUES THAN HAS BEEN THE CASE IN SOME

EARLIER SESSIONS.

T H IS HAS BEEN DUE IN PART TO THE GREATER PROMINENCE OF

FOREIGN AFFAIRS AND DEFENCE ISSUES, BUT ALSO I BELIEVE IT

REFLECTS THE FACT THAT OVER THE PAST S IX TO N IN E MONTHS

THE AUSTRALIAN ECONOMY HAS SO V IS IB L Y STRENGTHENED, AND THAT

AS A CONSEQUENCE THERE IS A GREATER ACCEPTANCE W ITHIN THE

COMMUNITY THAT THE GOVERNMENT IS FOLLOWING THE RIGHT

ECONOMIC COURSE. .... '

. .2 /

T H IS IS NOT A COUNSEL OF COMPLACENCY. CLEARLY THERE

ARE AREAS IN WHICH FURTHER IMPROVEMENT MUST S T IL L OCCUR.

AT THE SAME T IM E , HOWEVER, I THINK WE MUST ACKNOWLEDGE

THAT CURRENT ECONOMIC CONDITIONS AND THE PROSPECTS FOR

THE FUTURE ARE FAR BETTER THAN THEY HAVE BEEN FOR SOME

T IM E .

IN THE BUDGET SPEECH LAST AUGUST, I EXPRESSED CONCERN

AT THE IN T E N S IF IC A T IO N OF INFLATIONARY PRESSURES WHICH

WAS OCCURRING THROUGHOUT THE WORLD. THE ECONOMIC

P O L IC IE S FORMING THE BASIS OF THAT BUDGET RESPONDED

D E C IS IV E L Y TO THOSE RENEWED PRESSURES.

AS A RESULT OF THOSE ECONOMIC P O L IC IE S WHICH THE

GOVERNMENT HAS PURSUED CONSISTENTLY SINCE COMING TO

O F F IC E , AUSTRALIA IS NOW FAR BETTER PLACED IN A VERY

D IF F IC U L T INTERNATIONAL ECONOMIC ENVIRONMENT THAN A

NUMBER OF OTHER COUNTRIES.

ONE IN D IC A T IO N OF T H IS , AND AN IMPORTANT ONE, IS OUR

RELATIVELY BETTER PERFORMANCE IN CONTROLLING IN F L A T IO N .

IN THE 12 MONTHS TO THE MARCH QUARTER AUSTRALIA'S RATE

OF INFLATION AS MEASURED BY THE CONSUMER PRICE INDEX WAS

1 0 . 6 PER CENT. OVER THE 12 MONTHS TO THE END OF MARCH

THE AVERAGE RATE OF INFLATION AMONGST THE OECD COUNTRIES

WAS 1 3 .3 PER CENT. OVER THE LAST YEAR, AUSTRALIA'S

INFLATION RATE HAS BEEN CONSISTENTLY BELOW THE AVERAGE

OF THE OECD AREA. ........ . "

- 3 -

THIS' D IFFE R E N TIA L REMAINS ESSENTIAL TO THE MAINTENANCE

OF OUR INTERNATIONAL COMPETITIVENESS, BUT WE SHOULD

NOT BE LULLED INTO A FALSE SENSE OF SECURITY.

I T REMAINS V IT A L THAT WE ALSO LOWER, IN ABSOLUTE TERMS,

OUR OWN INFLATION RATE. .

ASSOCIATED WITH OUR MUCH IMPROVED INTERNATIONAL

COMPETITIVENESS HAS BEEN A VERY STRONG EXPORT GROWTH.

WHILE EXPORTS OF THE RURAL AND M IN IN G INDUSTRIES HAVE

PLAYED A LARGE ROLE IN THE OVERALL INCREASE, THE 37 PER

CENT GROWTH IN MANUFACTURED EXPORTS SO FAR TH IS FINANCIAL

YEAR IS PARTICULARLY ENCOURAGING. ' .

TH IS STRONG EXTERNAL PERFORMANCE HAS ASSISTED IN THE

B U ILD -U P OF OUR INTERNATIONAL RESERVES. IT HAS ALSO

MEANT THAT THE WISDOM OF THE GOVERNMENT'S-POLICY OF

BORROWING OVERSEAS ON IT S OWN ACCOUNT TO M AINTAIN THE

LEVEL OF ITS RESERVES HAS BEEN DEMONSTRATED AND THAT

THE OPPOSITION, IN ARGUING THAT TH IS WAS UNWISE, HAVE

BEEN PROVED WRONG. . .

THE GROWTH IN OUR EXPORTS W ILL ASSIST IN THE PROVISION

OF ADDITIONAL JOB OPPORTUNITIES WHICH ARE SO NECESSARY

TO PROVIDE A LONGER-TERM SOLUTION TO OUR UNEMPLOYMENT

PROBLEMS. ;

: ' . . 4 / -

- 4 -

ALREADY, AS POINTED OUT ON A NUMBER OF OCCASIONS RECENTLY

BY MY COLLEAGUE THE M IN IS T E R FOR EMPLOYMENT AND YOUTH

A F F A IR S , THERE HAS BEEN A MARKED IMPROVEMENT IN THE

STATE OF THE LABOUR MARKET.

UNEMPLOYMENT CONTINUES TO REMAIN AT HIGH LEVELS, BUT I T

IS PLEASING TO SEE THAT THE GOVERNMENT'S ECONOMIC P O L IC IE S

OF FOSTERING SOUND PRIVATE SECTOR A C T I V I T Y ARE BEARING

SOME F R U IT . " . _ “ . '

A P R IL WAS THE S IX T H SUCCESSIVE MONTH IN WHICH THE LEVELS

AND RATES OF UNEMPLOYMENT WERE BELOW THOSE RECORDED

IN THE CORRESPONDING MONTH A YEAR E A R LIE R .

THE S T A T I S T I C I A N 'S LABOUR FORCE SURVEY SHOWS GROWTH IN

TOTAL EMPLOYMENT ON AN OVER~THE"YEAR B A S IS OF 2 PER CENT

OR MORE FOR SEVEN SUCCESSIVE MONTHS. THE GROWTH IN

EMPLOYMENT CAN NO LONGER BE REFERRED TO AS A ' SHORT-TERM

MOVEMENT', AS SOME HAVE TR IE D TO LABEL I T .

THE GOVERNMENT REMAINS UNDETERRED FROM IT S B E LIEF THAT

THERE IS NO SUBSTITUTE FOR A STRONG PRIVATE SECTOR IN

THE PROVISION OF LONG-TERM JOB O PPO RTUNITIES.

TH IS GOVERNMENT MAKES NO APOLOGY FOR T H IS B E L IE F . INDEED,

THE SIGNS ARE THAT IT IS W E L L -J U S T IF I ED.

. .5 /

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PRIVATE SECTOR INVESTMENT A C T IV IT Y IS STRONG, THE

INVESTMENT AN TICIPATIO NS DATA SHOW THAT WE CAN EXPECT

STRONG GROWTH IN BUSINESS INVESTMENT IN THE SECOND HALF

o f 1 9 7 9 / 8 0 a n d i n 1 9 8 0 / 8 1 .

IN THE HOUSING SECTOR, PRIVATE DWELLING APPROVALS AND

COMMENCEMENTS DATA POINT TO CONTINUING STRENGTH IN

PRIVATE DWELLING INVESTMENT, '

' > · ' .. '

THE NUMBER OF PROPOSALS COMING BEFORE T H E F O R E I G N ·

I N V E S T M E N T R E V I E W BOARD AND THE L E V E L S OF I N V E S T M E N T

FORESHADOWED BY THE PROPOSALS T H A T HAVE BE EN APPROVED

P O I N T S TO VERY STRONG I N T E R E S T BY OVERSEAS I N V E S T O R S

AND R E F L E C T S T H E I R ENDORSEMENT OF A U S T R A L I A AS A SOUND

PLACE FOR LO NG - TERM I N V E S T M E N T , .

I NEED NOT M E N T I O N TO YOU THE VE RY LARGE NUMBER OF

RESOURCE DEVELOPMENT PROJECTS WHI CH HAVE BE EN FORESHADOWED

FOR THE COMING YEARS WHI CH OUGHT TO P R O V I D E FURTHER

STRONG GROWTH P O T E N T I A L FOR A U S T R A L I A .

RECENT E V I D E N C E OF GREATER C O N F I D E N C E BY CONSUMERS I S ALSO

A P P A R E N T , FOR E X AM PL E , I N THE MARCH QUARTER R E T A I L SALES

I N C R E A S E D BY 4 Λ PER CENT WHI CH COMPARES VERY FAVOURABLY

W I T H THE MORE SUBDUED RATES OF GROWTH W H I C H HAD OCCURRED

D U R I N G THE P R E C E DI N G Y E A R . THE T A X CUTS W H I C H COME I N T O

E F F E C T FROM 1 J U L Y COULD P R O V I D E A FURTHER S T I M U L U S .

. .6 /

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OVERALL, THE ECONOMY IS NOW MORE ROBUST THAN WAS

ANTICIPATED AT BUDGET TIME LAST YEAR,

' . .> ’■ ·

T H I S I S TRUE N O T W I T H S T A N D I N G SOME I N T E R N A T I O N A L EVENTS

WH I CH I T MUST BE S A I D HAVE H I N D E R E D THE PROGRESS OF THE

A U S T R A L I A N ECONOMY, :

THE F I R S T OF T H ES E WAS THE VERY D R A M A T I C R I S E I N

I N T E R E S T RATES W HI CH OCCURRED, P A R T I C U L A R L Y I N THE

U N I T E D S T A T E S , AND WHI CH TO SOME E X T E N T HAS BEEN PASSED

ON TO THE A U S T R A L I A N ECONOMY.

I T I S A MARK OF THE SUCCESS OF OUR ECONOMI C P O L I C I E S

T H A T THE I N C R E A S ES I N I N T E R E S T RATES W H I C H HAVE OCCURRED

I N A U S T R A L I A HAVE BY NO MEANS BEEN AS GREAT AS THOSE

W HI CH HAVE OCCURRED ELSEWHERE,

THE D E C I S I O N W HI CH THE GOVERNMENT TOOK E A R L I E R T H I S YEAR

TO USE A D D I T I O N A L REVENUE FROM THE CRUDE O I L L E V Y TO

REDUCE THE BUDGET D E F I C I T I N 1 9 7 9 - 8 0 HAS H E L P E D

C O N S I D E R A B L Y TO REDUCE THE PRESSURES I N D O M E S T I C F I N A N C I A L

MARKETS WHI CH M I G H T O THE RWI SE HAVE FORCED I N T E R E S T RATES

UP S T I L L H I G H E R ,

- 7 -

ANOTHER INTERNATIONAL DEVELOPMENT WHICH IS A SOURCE OF

SOME CONCERN HAS BEEN THE R IS IN G PRICE OF CRUDE O IL ,

T H IS HAS MEANT SOME SLOWING DOWN IN THE GROWTH RATES

OF THE INDUSTRIALISED ECONOMIES, BUT AT THE SAME TIME

HAS EMPHASISED THE IMPORTANCE OF M A IN TA IN IN G SENSIBLE

PRICING PO LIC IES FOR OUR OWN CRUDE O IL AND NOT

A R T IF IC IA L L Y S U B S ID IS IN G IT S CONSUMPTION AT A TIME OF

GROWING SCARCITY,

OF COURSE, THE OUTLOOK ON THE WAGES FRONT REMAINS

OMINOUS, WHILE THE GOVERNMENT W ILL CONTINUE TO ARGUE

FOR THE MAXIMUM POSSIBLE WAGE RESTRAINT, MUCH W ILL

. DEPEND ON HOW THE LABOUR MOVEMENT CONDUCTS ITSELF IN

THE COMING FEW MONTHS AND ON WHAT DECISIO N S THE

CO NCILIATION AND ARBITRATION COMMISSION COME TO IN THE

NATIONAL WAGE CASE,

IT IS AGAINST T H IS BACKGROUND THAT WE HAVE ALREADY

COMMENCED THE PROCESS OF FRAMING THE 1 9 8 0 BUDGET,

SPECULATION AS TO THE NATURE OF THE BUDGET WITH SOME

OF THE USUAL MELODRAMATIC DESCRIPTIONS HAVE ALREADY

APPEARED,

- 8 -

I AM AFRAID I AM GOING TO DISAPPOINT YOU TONIGHT AND

EXCUSE MYSELF FROM ANY COMMENT UPON THE CONTENT OF

THE BUDGET OTHER THAN TO PROMISE IN THE MOST E X P L IC IT

TERMS THAT I T W ILL CONTINUE THE SENSIBLE AND RESPONSIBLE

APPROACH OF EARLIER YEARS, .

THERE I S , HOWEVER, ONE.MATTER WHICH I DO BELIEVE OUGHT

TO BE ADDRESSED IN ORDER THAT WE FULLY UNDERSTAND THE

CONTEXT IN WHICH THE COMING BUDGET W ILL BE PUT

TOGETHER. ' v ' ' _

I DO BELIEVE THAT THERE HAS DEVELOPED IN SOME SECTIONS

OF THE COMMUNITY AN EXAGGERATED EXPECTATION AS TO THE

MAGNITUDE OF THE REVENUE AT THE GOVERNMENT'S DISPOSAL

IN THE COMING YEAR AND AS A CONSEQUENCE THE EXTENT TO

WHICH OUR BUDGETARY TASK HAS BEEN EASED. .

T H IS UNREAL EXPECTATION IN THE MINDS OF SOME DERIVES

FROM THE KNOWLEDGE OF THE INCREASED REVENUE FROM THE

CRUDE O IL LEVY. '

TO PUT IT QUITE BLUNTLY, THE GOVERNMENT IS NOT 'FLU S H '

WITH FUNDS,

T H IS YEAR WE SHALL RAISE SOME $2500 M IL L IO N FROM THE

CRUDE O IL LEVY, NOT $ 3 0 0 0 M IL L IO N AS SOME WOULD HAVE

YOU B E LIEVE .

' · · 9 /

T H IS IS SOME $ 3 6 0 M IL L IO N MORE THAN WE ESTIMATED AT THE

TIME OF THE LAST BUDGET, IN OTHER WORDS, $ 2 1 0 0 M IL L IO N

OF THE AN TICIPATED $2500. M IL L IO N WAS ALREADY COMMITTED

IN AUGUST OF LAST YEAR,

AT THAT TIME WE EXPECTED A BUDGET D E F I C I T OF ABOUT

$ 2 2 0 0 M IL L IO N , ALL OF THE IN D IC A TIO N S TO DATE ARE THAT

THE BUDGET PROJECTIONS MADE LAST AUGUST ARE VERY MUCH ON

TRACK, IF TH IS CONTINUES THE D E F IC IT OUTCOME FOR 1 9 7 9 / 8 0

SHOULD BE ABOUT $ 3 6 0 M IL L IO N LESS THAN ORIGINALLY

A N T IC IP A T E D , BUT THE EXISTENCE OF EVEN A D E F I C I T OF T H IS

S IZ E MEANS THAT THE REVENUE HAS ALREADY BEEN SPENT,

ASSOCIATED WITH THE EXAGGERATED EXPECTATIONS WHICH I

HAVE JUST MENTIONED HAS ARISEN THE B E L IE F THAT I T IS

APPROPRIATE FOR THE GOVERNMENT TO EARMARK PARTICULAR FORMS

OF REVENUE FOR PARTICULAR PURPOSES, . .

THE OUTSTANDING EXAMPLE OF T H IS HAS BEEN THE-RECENT CAMPAIGN

CONDUCTED BY VARIOUS MOTORING ORGANISATIONS TO HAVE A

PART OF THE PROCEEDS OF THE CRUDE O IL LEVY COMMITTED TO

THE FUNDING OF ROADS. .

THE GOVERNMENT DOES NOT ACCEPT THE P R IN C IP L E OF. HYPOTHECATING

REVENUE FOR PARTICULAR AREAS OF EXPENDITURE AND I WANT TO

SAY WHY WE TAKE T H IS VIEW , .

. . - 9 - ; . · . ■ ■ ■

..10/

THE GOVERNMENT IS CHARGED WITH PROVIDING A WIDE RANGE OF

SERVICES TO THE COMMUNITY AND IN DOING SO I T MUST U T IL IS E

THOSE RESOURCES I T TAKES FROM THE COMMUNITY THROUGH ‘

TAXATION AS EQUITABLY AS POSSIBLE TO ACHIEVE THE GOALS

WHICH I T AND THE COMMUNITY SETS, .

THESE A C T I V I T IE S COVER SUCH DIVERSE AREAS AS DEFENCE,

SOCIAL WELFARE AND THE PROVISION OF PUBLIC LAW AND ORDER,

THE GOVERNMENT MUST FUND THE SERVICES AS BEST I T CAN AND,·

PARTICULARLY IN TH E .S O C IA L WELFARE AREA, T H IS MEANS RAISING

REVENUE FROM ONE PART OF THE COMMUNITY TO BE USED FOR THE

B E N E FIT OF ANOTHER PART, AS A MATTER OF P R IN C IP L E , T H IS

IS GENERALLY ACCEPTABLE TO THE COMMUNITY ALTHOUGH THERE

IS UNDERSTANDABLY CONTINUING DEBATE AS TO THE APPROPRIATE

LEVEL OF THESE PARTICULAR SERVICES,

THOSE WHO ARGUE THAT REVENUE BEING RAISED FROM ONE SECTOR

OF THE COMMUNITY OUGHT TO BE SPENT ON THE INTERESTS OF

THAT PARTICULAR SECTOR ARE SUBVERTING T H IS P R IN C IP L E ,

LET ME TAKE THE CRUDE O IL REVENUE AS AN EXAMPLE,

AUSTRALIA, LU C K IL Y , CAN PROVIDE A LARGE PROPORTION OF

IT S PETROLEUM NEEDS FROM IT S OWN RESERVES. THESE ARE

PART OF THE N A T IO N 'S RESOURCES, TO HELP CONSERVE THESE

RESOURCES, THE GOVERNMENT HAS ADOPTED A POLICY OF IMPORT

PARITY PR IC IN G WHICH HAS MEANT QUITE SUBSTANTIAL INCREASES

IN THE PRICE OF CRUDE O IL WITH POTENTIALLY LARGE INCOME

GAINS TO THOSE COMPANIES EXPLO ITIN G O IL F IE L D S , .

- 10 - ,

. ,11 /

THE GOVERNMENT ACCEPTED THAT I T WAS NOT APPROPRIATE THAT ALL

OF THESE GAINS SHOULD ACCRUE TO THE COMPANIES IN- T H IS WAY

AND AS A RESULT RAISED THE CRUDE O IL LEVY,

NO ONE GROUP . IN THE COMMUNITY HAS ANY SPECIAL CLAIM TO

T H IS TAX REVENUE WHICH IS DERIVED FROM A NATIONAL ASSET.

HOW I T IS SPENT OUGHT TO BE DETERMINED IN PRECISELY THE

SAME WAY AS IN ANY OTHER CASE, NEITHER THE UNANTICIPATED

LEVEL O F,THE REVENUE NOR ITS NOVELTY. ARE S U F F IC IE N T

REASONS TO FALL INTO PROFLIGACY AND BREACH IMPORTANT

BUDGETARY P R IN C IP L E S , '

ASIDE FROM T H IS I T SHOULD ALSO BE APPARENT THAT ANY MOVE

TO EARMARK FUNDS FOR PARTICULAR AREAS OF EXPENDITURE IN

PRACTICE REDUCES BUDGET F L E X I B I L I T Y , . . .

I T MEANS THAT THE GOVERNMENT LOSES IT S A B IL IT Y TO ALTER "

IT S SPENDING P R IO R IT IE S BECAUSE IN DOING SO I T WOULD

ALSO HAVE TO ALTER ITS METHODS OF R A IS IN G TAXATIO N, I T

HINDERS RESPONSE TO COMMUNITY NEEDS,

I T WOULD ALSO MEAN THAT THOSE SECTORS OF THE COMMUNITY

WHICH CANNOT SUPPORT THEIR OWN PROGRAMMES WOULD RECEIVE

FEWER B E N E F IT S , FOR EXAMPLE, IN THE SOCIAL WELFARE AREA,

I T IS UNCLEAR WHAT FORM OF REVENUE' COULD BE USED TO SUPPORT

FAMILY ALLOWANCES, PENSIONS OR, INDEED, UNEMPLOYMENT B E N E FIT S ,

WHAT TAX IS MOST APPROPRIATELY USED FOR DEFENCE EXPENDITURE?

I NOTICE THAT ONE COMMENATATOR, TAKING THE P R IN C IP L E TO .

AN EXTREME, SUGGESTED THAT EXCISE ON BEER AND ALCOHOL ·

.COULD BE APPLIED TO IMPROVING THE COMFORT OF DRINKERS

IN HOTELS! ..

AS I HAVE S A ID , NOTWITHSTANDING SOME A D D ITIO N A L REVENUE

FROM THE CRUDE O IL LEVY WHICH HAD NOT BEEN A N TIC IPA TED

LAST AUGUST, THE GOVERNMENT S T IL L EXPECTS THE BUDGET

D E F IC IT TO BE IN THE ORDER OF $ 1 8 0 0 M IL L IO N . AS A RESULT,

THOSE PEOPLE WHO ARGUE THAT A PARTICULAR AREA OF

EXPENDITURE SHOULD RECEIVE PREFERENCE IN THE ALLOCATION

OF CRUDE O IL REVENUE ARE ARGUING EITHER THAT SOME OTHER

EXPENDITURE SHOULD BE CUT OR THAT TAXES IN SOME OTHER

AREAS SHOULD BE RAISED. '

THAT OUGHT TO BE REALISED BY THOSE UNDERTAKING SUCH

CAMPAIGNS AND BY THOSE PEOPLE SUPPORTING THOSE CAMPAIGNS.

IN CONCLUDING, I WOULD L IK E TO MAKE A PLEA TO THOSE WHO

WOULD TRY TO CONVINCE THE GOVERNMENT IN THE COMING WEEKS

OF THE MERITS OF PARTICULAR EXPENDITURE PROPOSALS OR EVEN

THE MERITS OF AD DITIO N AL TAXATION CONCESSIONS WHICH THEY

SEE AS BEING OF SOME B E N E FIT TO THEMSELVES OR TO OTHERS.

I WOULD ASK THAT THEY TRY TO UNDERSTAND THE IM PLIC ATION S

OF ANY REQUESTS THAT THEY MIGHT MAKE. THEY ARE, THAT

EITHER TAXATION W IL L BE HIGHER AS A RESULT OF IMPLEMENTING

THEIR REQUEST THAN I T OTHERWISE WOULD HAVE BEEN, OR THAT

EXPENDITURE IN SOME OTHER AREAS W IL L BE CUT BACK.

- 12 -

. .13 /

- 13 -

IF SOME INCREASE IN TAXATION IS A CONSEQUENCE, THEN TH IS

MEANS THAT THE INTERESTS OF THOSE PEOPLE BENEFITING

FROM THE ADDITIONAL EXPENDITURE IS MORE IMPORTANT THAN

LEAVING INCOME IN THE HANDS OF THOSE WHO EARN IT FOR

THEIR OWN DISPOSAL ACCORDING TO THEIR OWN P R IO R IT IE S .

IF ON THE OTHER HAND, SOME REDUCTION IN OTHER SPENDING

TAKES PLACE, TH IS MEANS THAT THE NEW PROGRAMME IS MORE

IMPORTANT TO THE COMMUNITY THAN THAT WHICH HAS BEEN

DELETED FROM THE GOVERNMENT'S L IS T OF PROGRAMMES.

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