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The past 12 months for the finance industry in Australia



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TREASURER

EMBARGO 8,00 PM

PRESS RELEASE NO. 72

Address by the Tr e a s ijr f r , the Ho n. J ohn Howard, Fi.P . , .

to t h e Annual D in n e r of the Au s t r a l ia n F in a n c e Co n f e r e n c e ,

La k e s id e Ho t e l , Ca n b e r r a , Mo n d a y , J u ly 25, 1979

I very much welcome t h i s o p p o r t u n it y of a d d r e s s in g the

An nual Din n e r of th e Au s t r a l ia n F in a n c e Co n f e r e n c e ,

Th i s g a t h e r in g b r in g s t o g e th e r . the p r i n c i p a l p a r t ic ip a n t s

IN A MAJOR SECTION OF THE AUSTRALIAN FINANCIAL SYSTEM.

By any m eas u r e , the p a st 12 months have be en e v e n t f u l for

THE FINANCE INDUSTRY IN AUSTRALIA. .

The year has seen the c o n t in u e d strength and growth of

your in d u s t r y , The growth and s t a b i l i t y of Au s t r a l ia n

FINANCE COMPANIES OWES MUCH TO THOSE WHO MANAGE THEM

AS WELL AS TO THE CLIMATE IN WHICH THEY OPERATE. .

Un f o r t u n a t e l y , the past 12 months has a ls o seen d i f f i c u l t i e s

EXPERIENCED BY TWO AUSTRALIAN FINANCE COMPANIES, No .

OBJECTIVE REVIEW OF THE EVENTS OF THIS PERIOD WOULD BE

COMPLETE WITHOUT ACKNOWLEDGING THIS.

2 .

I DO NOT INTEND TO SAY ANYTHING ABOUT THE MERITS OF

THOSE OCCURRENCES BUT SIMPLY NOTE THAT NOTWITHSTANDING .

THE INEVITABLE DISTURBANCE CAUSED BY THEM, THE ESSENTIAL . .

STRENGTH AND RESILIENCE OF THE WHOLE INDUSTRY AND, IN A

BROADER SENSE, THE AUSTRALIAN FINANCIAL SYSTEM HAS ABSORBED

THOSE EVENTS WITHOUT LASTING STRUCTURAL DAMAGE BEING

EXPERIENCED.

Wi t h o u t do ubt the most s i g n i f i c a n t e v e n t of t h e y e a r, was ·

THE ESTABLISHMENT LAST JANUARY OF THE CAMPBELL COMMITTEE

of I n q u ir y in t o th e Au s t r a l i a n Fi n a n c i a l Sy s t e m .

For t h e f i r s t t i m e i n o ve r'AO y e a r s, t h e r e w i l l be a

THOROUGHGOING EXAMINATION OF OUR SYSTEM AND THE MOST

FUNDAMENTAL AND SEARCHING QUESTIONS ASKED ABOUT THE '

OPERATION OF THE SYSTEM. .

The terms of r e f e r e n c e are d e l i b e r a t e l y b r o a d. Th i s i s

DESIGNED TO PROMOTE THE FRANKEST AND MOST DETAILED

EXAMINATION POSSIBLE.

By common c o n s e n t , the persons c o m p r is in g the Co m m it t e e

of I n q u ir y are of o u t s t a n d in g i n t e g r i t y , a b i l i t y and

REPUTATION AND WHAT THEY SAY ABOUT THE SYSTEM AND THE

RESPONSE OF THE GOVERNMENT TO THEIR RECOMMENDATIONS WILL

LEAVE A PERMANENT MARK ON THE AUSTRALIAN FINANCIAL SCENE, .

3 .

One of t h e many im p o r t a n t s u b j e c t s w h ic h w i l l i n e v i t a b l y

COME UNDER NOTICE IS THAT OF THE RELATIONSHIP BETWEEN

BANKS AND NON-BANK FINANCIAL INSTITUTIONS IN AUSTRALIA.

I n common w it h so many c o u n t r ie s , Au s t r a l ia supports a

FINANCIAL SYSTEM IN WHICH OBVIOUS ANOMALIES EXIST AS

BETWEEN THE VARIOUS SEGMENTS OF OUR FINANCIAL SYSTEM.

I DO NOT PROPOSE TONIGHT TO PREJUDICE THE INEVITABLE

DEBATE AND DELIBERATION WHICH WILL OCCUR BEFORE THE ·

Co m m it t e e . I cannot h elp b u t o b s e r v e , however , t h a t .

ITS RECOMMENDATIONS UPON THIS PARTICULAR SUBJECT WILL BE

AWAITED WITH VERY GREAT INTEREST INDEED. '

The o b v io u s response of i n s t i t u t i o n s and c o m p a n ie s to the

Co m m it t e e ' s work augurs w ell for a s e a r c h in g e x a m in a t io n

OF AN AREA WHICH IS SO VITAL TO OUR ECONOMIC FUTURE.

Mig h t I t a k e t h i s o p p o r t u n it y of a g a in s a y in g how ver y

much the Government a p p r e c ia t e s the w il l in g n e s s of men

OF THE CALIBRE OF THOSE WHO COMPRISE THE CAMPBELL

Co m m it t e e to devote so much of t h e ir t i m e , energy and

DILIGENCE TO WHAT IS , ALTHOUGH REWARDING, AN EXTREMELY

ONEROUS TASK. .

I SPOKE EARLIER OF THE CLIMATE IN WHICH YOUR INDUSTRY

OPERATES.

4 .

I t is t r i t e b u t n o n eth ele ss nec essary to say t h a t there

IS NO GREATER OBLIGATION UPON THE GOVERNMENT THAN TO

CREATE AN ECONOMIC CLIMATE WITHIN WHICH THE PRIVATE

SECTOR CAN FUNCTION AND PROSPER,

Not u n n a t u r a l l y , I want to say a few t h in g s t o n ig h t about

th e Go ve r n m e n t ' s economic p o l i c i e s ,

There has been c r i t i c i s m of some of those p o l i c i e s in

RECENT MONTHS, I WANT TO RESPOND TO THAT CRITICISM AND

IN THE PROCESS PUT THE ECONOMIC ACHIEVEMENTS OF THIS

Government in proper p e r s p e c t iv e and put sq u ar ely befo r e you

THE PROBLEMS AND CHALLENGES IN THE NEXT YEAR OR SO.

I t i s true t h a t not a l l of the goals we set o urselves

YEARS AGO HAVE BEEN ACHIEVED.

Wit h o u t d o u b t , we have d is p l a y e d o p t im is m in some areas

WHERE PERHAPS GREATER CAUTION MIGHT HAVE BEEN D ESIRABLE,.

Wit h o u t q u e s t io n , some e x p e c t a t io n s abo ut what could be .

ACHIEVED HAVE NOT BEEN REALIZED, ■

Wh i l s t not every s t a t i s t i c a l o b j e c t iv e has been a c h ie v e d ,

THE BROAD ECONOMIC GOALS OF THIS GOVERNMENT HAVE BEEN

REALIZED AND THE GENERAL DIRECTION OF ECONOMIC POLICY

SO CLEARLY LAID DOWN BY THE PRIME MINISTER AT THE TIME .

OF THE 1975 ELECTION HAS BEEN VERY CLOSELY FOLLOWED.

5 .

W e do have much lower i n f l a t i o n than b e f o r e .

W e are e x p e r ie n c in g greater economic growth and a c t i v i t y ,

Au s t r a l ia i s once a g a in a d e s ir a b l e country in w hich

to i n v e s t . The r e c e n t ly concluded f i n a n c i a l year saw

THE LARGEST PRIVATE CAPITAL INFLOW SINCE 1972. .

Au s t r a l ia n in d u s t r y has r e g a in e d much of i t s l o s t

COMPETITIVENESS. THIS IS PARTICULARLY REFLECTED IN

THE STRENGTHENING OF OUR TRADE ACCOUNT IN RECENT TIMES.

W e have reduced th e o v e r a l l burden of t a x a t i o n .

The p a s t 3 years have seen a marked r i s e in t h e l e v e l

OF CAPITAL INVESTMENT IN AUSTRALIA. .

W e have r e s t r a in e d the growth of Government s p e n d in g .

O ver the p a st 3 f i n a n c i a l y e a r s , there has been v ir t u a l l y

NO GROWTH AT ALL IN.REAL TERMS IN THE LEVEL OF FEDERAL

GOVERNMENT SPENDING. .

De s p i t e the setbacks of the l a s t 2 year s th e d e f i c i t

AS A PERCENTAGE OF G .D .P . HAS BEEN REDUCED FROM

A PEAK OF 5 PER CENT TO AN ESTIMATED 3 Λ PER CENT .

IN 1 9 7 8 /7 9 .

6 .

W e have a ls o made i t p l a i n t h a t the o v e r a l l l e v e l of

THE PUBLIC SECTOR BORROWING REQUIREMENT MUST BE BROUGHT

UNDER CONTROL AND TAKEN ACTION TO THAT END.

W e have managed monetary p o l ic y in a way t h a t has served

THE TWIN OBJECTIVES OF PUSHING DOWN ON INFLATION AND

UNDERWRITING REAL GAINS IN ECONOMIC ACTIVITY.

THEY ARE THE ACHIEVEMENTS OF A GOVERNMENT WHICH HAS

KEPT FAITH WITH THE BASIC PROMISES IT MADE ABOUT THE .

ECONOMY IN 1975.

Wh i l s t i t i s , of course , open to anyone to say t h a t

PARTICULAR STATISTICAL TARGETS IN CERTAIN AREAS MAY NOT

HAVE BEEN ACHIEVED, NOTHING CAN GAINSAY THE FACT THAT

THE GENERAL DIRECTION OF OUR ECONOMIC POLICY HAS BEEN THAT

PROMISED IN 1975 AND HAS RESULTED IN A STRENGTHENING OF

THE FUNDAMENTALS OF OUR ECONOMY.

I t has produced an atmosphere of o p t im is m and c o n f id e n c e

ABOUT OUR ECONOMIC FUTURE.

There are areas where l e s s progress has b e e n · m a d e .

The p r i n c i p a l of th ese i s unem plo ym en t . Unemployment

i n Au s t r a l ia i s h ig h e r than i t was in December 1975.

7

De s p it e p l e a s in g in c r e a s e s in the l e v e l of c i v i l i a n .

EMPLOYMENT - PARTICULARLY IN THE PRIVATE SECTOR - . ■ '

THROUGHOUT 1978/79, THE number of unemployed has .

REMAINED DISTURBINGLY HIGH. .

Our opponents have a l l e g e d t h a t we have d e l ib e r a t e l y

PURCHASED A REDUCTION IN THE LEVEL OF INFLATION WITH

HIGHER UNEMPLOYMENT. No CHARGE COULD BE FURTHER FROM

THE TRUTH. ■ ' .

There i s a broad co m munity concern a b o u t .the l e v e l of

UNEMPLOYMENT BUT WIDELY DIFFERING VIEWS AS TO HOW THE

PROBLEM IS TO BE SOLVED. . .

The wage e x p l o s io n of some years ago had a l a s t in g e f f e c t

on many Au s t r a l ia n b u s in e s s e s . They s im p l y lear n ed to

DO WITH LESS EMPLOYEES ON·A PERMANENT BASIS, -

Th i s Government r e m a in s f ir m l y of the v ie w t h a t the l e v e l

OF INFLATION IS RELEVANT TO THE LEVEL OF UNEMPLOYMENT AND

WITHOUT A LASTING REDUCTION IN INFLATION, A LASTING

REDUCTION IN UNEMPLOYMENT CANNOT BE ACHIEVED.

Put s i m p l y , unemployment can only be reduced through

THE CREATION OF MORE JOBS. ·

8 .

W e b e l i e v e t h i s can only be a c h ie v e d by f o llo w in g p o l i c i e s

WHICH PRODUCE LASTING INCREASES IN THE LEVEL OF ECONOMIC

A C TIV ITY . .

Th i s must in v o l v e f o llo w in g a n t i - in f l a t io n a r y p o l i c i e s

DESIGNED TO CREATE A MORE PREDICTABLE AND STABLE INVESTMENT

CLIMATE. . . .

The only a l t e r n a t iv e str ateg y w h ic h has been advanced

IS THAT THERE SHOULD BE GREATER PUBLIC SPENDING TO ·

STIMULATE EMPLOYMENT, . .

Those who advocate t h i s a l t e r n a t iv e s t r a t e g y - p a r t ic u l a r l y

the Au s t r a l ia n Labor Par ty - do not l i k e to a d m it t h at they

ARE RECOMMENDING A SIGNIFICANT CHANGE IN ECONOMIC DIRECTION

They pr e te n d t h a t a l l t h a t is in v o l v e d i s a " f i n e t u n in g " ;

AND WITH' A LITTLE ADJUSTMENT HERE AND THERE JOB CREATION

SCHEMES CAN BE PRODUCED WHICH WILL HAVE A DRAMATIC EFFECT

ON THE LEVEL OF UNEMPLOYMENT. . -

I n d e e d / th e Leader of the Op p o s it io n sp e n t most of l a s t

week in Ad e l a id e end eavo u r in g to- g iv e t h e im p r e s s io n '

THAT THERE WAS NOT MUCH DIFFERENCE BETWEEN HIS ECONOMIC

POLICY AND THAT PRESENTLY BEING FOLLOWED BY THE GOVERNMENT.

I SHALL RETURN TO THIS MATTER AGAIN IN .A MOMENT.

9 .

However, the f a c t i s t h a t t h e a l t e r n a t i v e does in v o l v e

A SIGNIFICANT VARIATION OF OUR APPROACH V IA A SIGNIFICANT

INCREASE IN THE SIZE OF THE D E FIC IT WITH ALL THAT WOULD

ENTAIL FOR INCREASED INFLATIONARY PRESSURES AND

POTENTIALLY HIGHER INTEREST RATES, ..

Not o n ly would t h e s e co nsequences be u n d e s ir a b l e i n

THEMSELVES BUT THEY WOULD VERY QUICKLY UNDERMINE ANY

SHORT-TERM REDUCTIONS IN THE LEVEL OF UNEMPLOYMENT

WHICH A MORE EXPANSIONARY BUDGET POLICY MIGHT PRODUCE.

The g r e a t e s t ec o n o m ic c h a l l e n g e we face in th e n e x t

12 MONTHS IS A RESURGENCE OF INFLATION.

What th e OECD has c a l l e d " an o b s t in a t e v i r u s " i s s t i l l

VERY MUCH WITH US AND UNLESS APPROPRIATE POLICIES ARE

SUSTAINED WILL UNDERMINE THE PROGRESS WE ^AVE MADE IN

RECENT YEARS. , .

Our economic effo rts ' in the coming months must b e ..

DIRECTED TOWARDS RESTRAINING THE LEVEL OF INFLATION

in Au s t r a l ia and m a i n t a i n i n g the c o m p e t it iv e g a in s

WE HAVE MADE IN TERMS OF OUR TRADING PARTNERS.. .

A NUMBER OF PRICE INCREASES IN SPECIFIC AREAS WILL HAVE

A DETRIMENTAL EFFECT ON THE C.P.I. OVER THE NEXT 12

MONTHS.

10.

Th e y in c l u d e p r i c e in c r e a s e s in a s i g n i f i c a n t number

OF COMMODITIES INCLUDING O IL , FOOD AND METALS.

I t can a l s o be a n t i c i p a t e d t h a t there w i l l b e an

INCREASE IN THE HEALTH COMPONENT OF THE C.P.I. IN

t h e December quarter r e s u l t in g from in c r e a s e s i n

INSURANCE PREMIUMS AS A CONSEQUENCE OF THE INCREASE

IN DOCTORS' FEES AND THE HEALTH MEASURES I ANNOUNCED

on 24 M ay.

By far th e most s i g n i f i c a n t pressure p o in t on th e .

PRICES FRONT IS , OF COURSE, THAT OF O IL . OlL PRICE

INCREASES ALONE ARE LIKELY TO ADD AROUND ONE AND

ONE-HALF PER CENT TO THE C.P.I. IN 1979.

S in c e th e bu d g et d e c is io n of l a s t year to p r ic e

Au s t r a l ia n crude o i l a t f u l l im p o r t p a r i t y l e v e l s

. THE REAL PRICE OF O IL HAS INCREASED BY ROUGHLY 40 PER CENT.

The government has no regrets a t h a v in g take n t h e ’

DECISION TO MOVE TO FULL IMPORT PARITY IN THE LAST

BUDGET.

I n d e e d , t h e ev en ts w h ic h have unfolded s in c e August

197S HAVE CONFIRMED THE WISDOM OF THAT DECISION AT

THAT PARTICULAR TIME. ...

Le t there be no m is t a k e abo ut i t . Th a t d e c is i o n was

TAKEN IN THE INTERESTS OF ENERGY CONSERVATION.

Th a t d e c i s i o n r e c o g n is e d the a b s o l u t e f o l l y of s u b s i d i s i n g

THE CONSUMPTION OF A SCARCE ENERGY RESOURCE. ■

That d e c i s i o n has a l r e a d y had d e s ir a b l e c o n s u m p tio n e f f e c t s

i n Au s t r a l i a , . · :

Th a t d e c i s i o n has in c r e a s e d the a t t r a c t iv e n e s s of a l t e r n a t iv e

FUELS SUCH AS LRG AND NATURAL GAS AND HAS BROUGHT CLOSER .

THE DATE ON WHICH ALTERNATIVE MEANS OF O IL EXTRACTION .

BECOME ECONOMICALLY ATTRACTIVE WITHOUT SUBSIDIES. .

Au s t r a l i a has a c o h e r e n t, e f f e c t i v e energy p o l i c y w h ic h

RECOGNISES A SIMPLE FACT OF ECONOMIC L IF E , V IZ . THAT IF

YOU HAVE A SCARCE RESOURCE THE PRICE OF THAT RESOURCE

SHOULD BE DETERMINED IN THE MARKET PLACE AND NOT .

A R TIFIC IALLY DEPRESSED THROUGH GOVERNMENT INTERVENTION -

BECAUSE IF IT IS IT WILL VERY QUICKLY BECOME AN EVEN

SCARCER RESOURCE. . ,

Our p o l ic y of p r i c i n g d o m e s t ic crude o i l a t world l e v e l s

HAS RECENTLY BEEN ENDORSED BY THE O.E.C.D.

12,

I a b o r' s Al t e r n a t i v e Ec o n o m ic Po l i c y .

M r. Hayden wants to f ig h t the n ext e l e c t io n on th e is s u e

OF ECONOMIC MANAGEMENT, I RELISH THE PROSPECT OF THE NEXT

ELECTION BEING PRINCIPALLY DECIDED UPON THE COMMUNITY'S

ASSESSMENT OF THE POLICIES AND PERFORMANCE OF THE

Government and the Op p o s it io n in th e ar e a of economic

MANAGEMENT. . . .

The Op p o s it io n Leader was a t g reat p a in s in Ad e l a id e l a s t

WEEK TO D is-O W N THE FORMER LABOR GOVERNMENT. .

He ought not to forget t h a t he was a s e n io r member of

t h a t Government and as Mi n i s t e r for So c i a l Se c u r it y for

2 k YEARS AND TREASURER FOR 5 'MONTHS, HE WAS RIGHT IN THE

THICK OF ECONOMIC DECISION MAKING FROM THE VERY BEGINNING

OF THE WHITLAM ERA, .

Ben eath a facade of r e s t r a in t , c a u t io n and l i p s e r v ic e to

THE ROLE OF THE PRIVATE SECTOR, THE NATIONAL CONFERENCE

OF THE ALP HAS, IN FACT, -RE-DEDICATED THAT PARTY TO AN

EXPANDED PUBLIC SECTOR,

HOW ELSE DOES ONE READ SUCH OBJECTIVES AS "AN EXPANDED

INTERVENTIONIST ROLE BY GOVERNMENT", "A RESPONSIBLE

DEVELOPMENT OF THE. PUBLIC SECTOR", "REGULATION OF '

p u b l i c / p r iv a t e sector c o m p e t it io n " , " j o i n t , p u b l i c / p r iv a t e

SECTOR OWNERSHIP", "GOVERNMENT PROCUREMENT PROGRAMS" AND

"NATIONALISATIO N." .·.

13.

HOW ELSE DOES ONE EXPLAIN A COMMITMENT TO ESTABLISH OR

EXPAND PUBLIC ENTERPRISE TO COMBAT SO-CALLED ANTI-SOCIAL

MONOPOLIES TO FACILITATE THE RESTRUCTURING OF INDUSTRY

AND TO REDUCE FOREIGN OWNERSHIP AND CONTROL OF AUSTRALIAN

INDUSTRY AND RESOURCES. .

• ' ■ " ; ■ · ! - i * :

W e ought now know t h a t M r. Ralp h Wi l l i s , th e Shadow

Tr easu r e r , w asn' t j o k in g when he to ld a g a t h e r in g of .

LABOUR ECONOMISTS IN BRISBANE IN 1978 THAT THE FIRST TASK

OF A RE-ELECTED LABOR GOVERNMENT WOULD BE TO PERSUADE THE

ELECTORATE THAT IT WOULD HAVE TO PAY MUCH HIGHER TAX

TO FINANCE THE REBUILDING OF THE PUBLIC SECTOR.

If you t h in k I am in d u l g in g in an o ld- f a s h io n e d ,

DOCTRINAIRE ATTACK ON THE LABOR PARTY, I INVITE YOU TO

READ THE TEXT OF THE RESOLUTIONS CARRIED AT THE ADELAIDE

Co n f e r e n c e . · .

I d o n' t PROPOSE TO SAY ANYTHING ABOUT THE CIRCUMSTANCES

in w hich La b o r ' s p o l ic y on wages was a d o p t e d . .

I WILL SIMPLY READ THE POLICY.

"WITH "THE UNDERSTANDING AND CO-OPERATION OF THE

TRADE UNION MOVEMENT, DEVELOP AND IMPLEMENT POLICY

WHICH WILL ENCOMPASS PRICES, WAGE INCOMES,. NON-WAGE

INCOMES, THE SOCIAL WAGE, TAXATION REFORM AND

ELIMINATION OF TAX AVOIDANCE AND WHICH WILL ACHIEVE

■ A MORE EQUITABLE DISTRIBUTION OF OUR NATIONAL WEALTH

14.

AND INCOME WITH THE COMMITMENT TO SUPPORTING THE

MAINTENANCE OF REAL WAGES BY QUARTERLY ADJUSTMENT AND

THE PASSING ON OF THE BENEFITS OF INCREASES IN

PRODUCTIVITY."

Is Mr . Hayden r e a l l y s e r io u s in a s k in g us to a c c e p t t h a t

THE REQUIREMENTS OF. ECONOMIC· RESPONSIBILITY HAVE BEEN

MET IN THE WAGES AREA WITH A POLICY WHICH IS AS VAGUE AND

MEANINGLESS AS THAT. . . .

Once a g a i n , t h e Labor Pa r ty has e x h i b i t e d i t s p a r a n o ia

ABOUT FOREIGN INVESTMENT IN AUSTRALIA.

I ts r e c e n t l y ado pted p o l ic y has alm ost l u d ic r o u s

REFERENCES TO "INCREASING FOREIGN DOMINATION BY FOREIGN-

BASED TRANSNATIONAL CORPORATIONS ENDANGERING OUR NATIONAL

SOVEREIGNTY."

Not only i s t h i s ty p e of language out of accord w it h

REALITY, IT IS ALSO, I SUGGEST, OUT OF STEP WITH THE . .

FEELINGS OF THE GREAT MAJORITY OF AUSTRALIANS TOWARDS

OVERSEAS INVESTMENT IN THIS COUNTRY.

I n c r e a s in g l y , we r e c o g n is e the c o n t r ib u t io n of overseas

c a p i t a l to Au s t r a l i a ' s d ev elo pm en t and the a b s o l u t e

ESSENTIALITY OF FURTHER OVERSEAS INVESTMENT IF WE ARE

SENSIBLY TO EXPLOIT OUR VAST RESOURCES TO THE NATIONAL

BENEFIT.

15,

Re a l i s t s i n th e Au s t r a l i a n Labor Pa r t y know t h a t more in v e s t m e n i

MEANS MORE JOBS. UNFORTUNATELY, WHEN IT COMES TO WRITING

POLICY ON OVERSEAS INVESTMENT THE IDEALOGUES IN THE LABOR

Pa r t y alw a ys carry th e d a y,

Th i s Governm ent has done much to encourage a c l i m a t e of

PREDICTABILITY AND STABILITY FOR FOREIGN . INVESTMENT IN

Au s t r a l i a , ■ . .

Our oppo n en ts seem d e t e r m in e d to u n d e r m in e t h a t . ’ - .

The new ALP p o l i c y would g i v e to t h e Fo r e ig n I n ve st m e n t ■

Re v ie w Board a new and expanded role i n t h e a r e a of

MONITORING THE OPERATIONS OF MULTINATIONAL CORPORATIONS.

I n t h i s strange new spy r o l e , th e Board would be charged .

WITH.THE RESPONSIBILITY OF DISSEMINATING ALL MANNER OF

INFORMATION ABOUT MULTINATIONAL CORPORATIONS TO NOT ONLY

Au s t r a l ia n c o m p a n ie s bu t als o Trade Un io n s , consumer

GROUPS AND RESEARCH ORGANISATIONS IN AUSTRALIA AS WELL AS

RELEVANT INTERNATIONAL ORGANISATIONS,

Giv e n the s e n s i t i v i t y of m a t e r ia l c o m p a n ie s s u b m it to the . .

Board., i t i s hard to im a g in e large in t e r n a t io n a l c o m pan ie s

r e t a in in g much e n t h u s ia s m for d o in g b u s in e s s in Au s t r a l ia

UNDER THAT SORT OF REGIME.

16,

La b o r' s eco no m ic p o l i c y has b e e n g i v e n a l a b e l of

RESPONSIBILITY BY ITS AUTHORS, .

· " : „ . . "

B e n e a t h t h e s u r f a c e i t i s , a t b e s t , e q u i v o c a l a n d , a t

WORST, DOWNRIGHT DANGEROUS TO OUR LONGER TERM ECONOMIC

I NT E R E ST S, . . '

I t i s p u s il l a n im o u s abo ut i n f l a t i o n . - I t t o t a l l y s q u ib s

THE ISSUE OF A RESPONSIBLE WAGES POLICY AND IS PLAINLY

HYSTERICAL ABOUT FOREIGN INVESTMENT. " _

M r. Hayden may want us to b e l i e v e t h a t he has turned h i s

BACK ON THE FREE-WHEELING BIG SPENDING WHITLAM YEARS. .

He has m a n if e s t l y f a i l e d to lead h i s Party from it s

PREOCCUPATION WITH GOVERNMENT INTERVENTION IN THE ECONOMY

ITS UNREALISM ABOUT WAGES AND ITS HYSTERIA ABOUT

MULTINATIONALS.

Can ber r a

23 July 1979