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  14. <title>Election Speeches · Malcolm Fraser, 1980 · Museum of Australian Democracy at Old Parliament House</title>
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  29. <h1 class="visuallyhidden">
  30. Malcolm Fraser, 1980
  31. </h1>
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  33. </section>
  34.  
  35. <section id="speech">
  36. <div class="left-won row" id="match-up">
  37. <div class="candidate left-candidate span3 offset1">
  38. <span>
  39. Malcolm Fraser
  40. </span>
  41. </div>
  42. <div class="vs span4">}<span>1980</span>{</div>
  43. <div class="candidate right-candidate span3">
  44. <span>
  45. <a href="/speeches/1980-bill-hayden">Bill Hayden</a>
  46. </span>
  47. </div>
  48. </div>
  49. <div class="row">
  50. <div class="span8 offset2" id="candidate">
  51. <span class="speaker">
  52. Malcolm Fraser
  53. </span>
  54. <span class="blue-party">
  55. Liberal/National coalition
  56. </span>
  57. <p class="delivered">
  58. Delivered at Melbourne, Vic, September 30th, 1980
  59. </p>
  60.  
  61. </div>
  62. </div>
  63. <div class="row" id="notes">
  64. <div class="span5 offset1">
  65. <p>The election was held on 18 October, 1980. Malcolm Fraser and the Liberal/National Country Party coalition sought a third term. The Australian Labor Party was now led by Bill Hayden, who had taken over from Whitlam following the 1977 election.</p>
  66.  
  67. <p>A global economic downturn had taken place in 1978 to 79 and the government was criticised for its economic management. Polls showed the government was increasingly unpopular and despite the large majority, was in a weak electoral position. The government campaigned on its record and accused Hayden of being a prisoner of his party’s socialist Left faction, while </p>
  68.  
  69.  
  70. </div>
  71. <div class="span5">
  72.  
  73.  
  74. <p>Hayden blamed the government for the decline in living standards. Labor focused not just on Hayden but on two popular figures – NSW premier Neville Wran and ACTU President Bob Hawke, who himself was elected to parliament at the general election. Tensions between these three men contributed to the perception of Hayden as a weak leader.</p>
  75.  
  76. <p>The Australian Labor Party won significant gains, winning 51 seats to the Coalition’s 74, reversing much of the damage done by the previous two elections.</p>
  77.  
  78. </div>
  79. </div>
  80. <div class="double-line line-small"></div>
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  84. <img alt="Malcolm Fraser, National Library of Australia" src="https://m...content-available-to-author-only...s.com/uploads/regular_8682ef4e.jpg" />
  85. <div class="caption">
  86. Malcolm Fraser, National Library of Australia
  87. </div>
  88. </div>
  89. <div id="bio">
  90. <p>John Malcolm Fraser was born 21 May, 1930. Fraser was Prime Minister of Australia 11 November, 1975 to 11 March, 1983. He was the Leader of the Liberal Party. Fraser represented the electorate of Wannon, Vic 1955 to 1983.</p>
  91.  
  92. <h2>Elections contested</h2>
  93. <a href="/speeches/1975-malcolm-fraser">1975</a>, <a href="/speeches/1977-malcolm-fraser">1977</a>, <a href="/speeches/1980-malcolm-fraser">1980</a>, and <a href="/speeches/1983-malcolm-fraser">1983</a>
  94. </div>
  95. </div>
  96. <div class="span7">
  97. <div id="body">
  98. <h2>Challenges</h2>
  99.  
  100. <p>Tonight, I want to talk to you about the challenges and opportunities that lie before us. First, we must maintain responsibility in economic affairs because, without that, all else fails. Second, we must harness this nation&#39;s resources in a co-ordinated and responsible programme of national development. Third, we must see that from the prosperity we generate, we provide adequately for those in need. Fourth, as individuals and as a nation, we must encourage ability and cultivate excellence. And finally, in a world where there is conflict, division and illusion, we must guide Australia safely through the difficulties and the dangers.</p>
  101.  
  102. <h2>First challenge: responsible economic management</h2>
  103.  
  104. <p>The first challenge facing Government in the 80s is the pursuit of responsible economic management. Responsible economic management may sometimes sound far-away from our everyday lives. But responsible economic management has brought our inflation rate to: </p>
  105.  
  106. <ul>
  107. <li> much less than it was in 1975. </li>
  108. <li> much less than the inflation rate of Britain. </li>
  109. <li> below that of the United States. </li>
  110. <li> and below the average of advanced industrialised countries. </li>
  111. </ul>
  112.  
  113. <p>But there is more to be done. Continued economic responsibility demands restraint in Government expenditure. And last year, we achieved the largest ever recorded reduction in the Budget deficit $1.5 billion. And now, this financial year, the domestic deficit will be wiped out altogether.</p>
  114.  
  115. <h2>Taxation</h2>
  116.  
  117. <p>We earlier committed ourselves to reform the tax scales. We have fulfilled that commitment absolutely. Under the Hayden/Labor scales: </p>
  118.  
  119. <ul>
  120. <li> from $7,000, paid 35 cents in the dollar. </li>
  121. <li> from $10,000 you paid 45 cents in the dollar. </li>
  122. <li> from $15,000 you paid 55 cents in the dollar.</li>
  123. </ul>
  124.  
  125. <p>Under our scales, you are on the standard rate of 32 cents in the dollar, right up to $17,239. And on the first of July this year, taxes were cut by over $600 million — of particular benefit to single income families.
  126. Under our present policy of half tax indexation there will be a further tax cut of around $500 million from July the first next year. Of course, we would have preferred to go further. But any tax cut purchased at the cost of higher inflation would be no tax cut at all. And we will continue to fight inflation. No wonder British investors recently said that their confidence in the Australian economy was &#39;Conditional upon the continuation of a Liberal Government.&#39; And we plan to keep it that way.</p>
  127.  
  128. <h2>Second challenge: development</h2>
  129.  
  130. <p>And so I come to the second challenge — the need for a broad based and responsible programme of national development.</p>
  131.  
  132. <p>In my Policy Speech in 1977, I said Australia could look forward to $6,000 million of development. Some amazement was expressed at this — even disbelief. Because the Labor Party had stopped development dead in its tracks. Yet in the two years after that, more than $6,000 million was invested in mining and manufacturing. _And now, prospective investment is $29,000 million. This development promises to be as important to Australia and individual Australians as anything in the last 35 years.</p>
  133.  
  134. <p>Already, new aluminium smelters and mines are being established in Australia along with the associated new towns, railways, roads and port facilities. The benefits of this will be felt nation-wide. We are not just talking about development for development’s sake &ndash; we are talking about development because of what it means to people. And it means jobs, prosperity and security for Australian working men and women.</p>
  135.  
  136. <p>To achieve all this we have had to trim our sails once or twice, for the world is a harsher place that anyone expected five years ago. But responsible management means placing Australia first, not once or twice, but always. Placing Australia first is the responsibility of management, Labor and trade unions just as much as it is of Government. Responsibility to Australia means achieving greater rank-and-file influence within unions; and giving rank-and-file trade unionists, confronted with the demand to join a strike, the option of a secret ballot.</p>
  137.  
  138. <p>But above all, it means rejection of 35-hour weeks; rejection of unrealistic wage claims; and rejection of extremist union leaders. And that rejection is the duty of us all.</p>
  139.  
  140. <p>Let me give you another measure of what is happening in Australia. The increase in electricity generation through the 1980s will be almost equal to that which occurred over the last 30 years. We are going to do in ten years what previous generations took 30 years to accomplish. Modern new industries are coming on-stream with modern plant and equipment involving the most advanced technology. These new developments will give Australia in the 1980s a much stronger international base. New markets are opening up for Australian industries.</p>
  141.  
  142. <p>None of this has happened by accident. We have introduced firm anti-inflationary policies, policies which encourage and support new Australian initiatives, policies which reflect a responsible and reasonable attitude to overseas investment, and policies which protect the Australian environment. What is happening is the result of our policies.</p>
  143.  
  144. <p>And our oil parity pricing is an important part of the overall plan. We want Australia to be as energy self-sufficient as possible in future years. We do not want Australia to be a beggar for fuel on the international market. We want to attract investment in alternatives to oil &ndash; and we are succeeding.</p>
  145.  
  146. <p>The giant Rundle Shale oil project in Queensland is likely to be the largest ever undertaken in Australia, and one of the largest in the world. This would not have occurred without parity pricing. We are not just concerned for next year, or the year after. We are building Australia
  147. for the next decade and beyond; to do otherwise would be a betrayal of you and your children. Against the dangers and the difficulties of the current war in Iran and Iraq, does anyone dare tell us that we should alter our policies?</p>
  148.  
  149. <p>It is fair enough to ask where the oil revenues are going. Every cent is being returned to Australians. For example, this year more than $600 million in tax cuts, more than $500 million on defence, and over $460 million to further reduce the Budget deficit. The growth and confidence in Australian industry is broad-based &ndash; industries generally are looking to the future, encourage by incentive for investment, for innovation, for research and for export. These policies will continue.</p>
  150.  
  151. <p>The tax laws will be altered again to make it easier for small business to build up their reserves.</p>
  152.  
  153. <h2>Tourism</h2>
  154.  
  155. <p>We will provide additional incentives for the tourist industry; amongst these, many of our airports are being remodelled and rebuilt. We have built on our programmes for Tasmania; and with New Zealand approval, the Hobart to Christchurch air link will soon begin.And we have decided to proceed with the Alice Springs-Darwin railway.</p>
  156.  
  157. <h2>Farmers</h2>
  158.  
  159. <p>Five years ago, it was an unhappy business travelling around the Australian countryside. Many farmers were bankrupt; prices had collapsed. Farmers did not know whether to encourage their sons to stay on the land, or to desert their farms. Now, all that has changed. Our rural industries are doing much better. Our fight against inflation; our policies in support of rural industries; our effective trade offensive overseas; these have played a major role in rural recovery. We understand rural industries. We assist them through troubled years and variable prices. And new initiatives will betaken in the coming Parliament.</p>
  160.  
  161. <h2>Drought</h2>
  162.  
  163. <p>I know that, as I speak tonight, there is severe drought in many parts of Australia. We will continue to co-operate with the States to see if there is more we can do to assist.</p>
  164.  
  165. <h2>Labor taxes</h2>
  166.  
  167. <p>Would anyone exchange our programmes of assistance for the threat of Labor&#39;s death duties? Would anyone exchange our current industrial and rural strength for the certainty of Labor&#39;s wealth tax? Would anyone trade their present position for the policies of the Whitlam years and the introduction of a capital gains tax?</p>
  168.  
  169. <h2>Employment</h2>
  170.  
  171. <p>As a result of rural recovery, last year, for the first time in 30 years, farm employment grew. Indeed, in the 12 months to August this year, total employment in Australia grew by over 200,000. What are the Labor Party doing? They are promising to provide half that number of jobs — but they are going to charge you a thousand million dollars to do it. Our dedication to strengthening the economy is the only way to create more jobs. I know it is difficult for some people who leave school. Some move smoothly into a job; others have difficulty. Because of this, we have established a range of manpower and training programmes to improve the skills, the versatility and the mobility of those looking for work. These programmes will benefit this year more than 236,000 Australians. And last year, the number of apprentices in training was an all-time record of 136,000. </p>
  172.  
  173. <p>We will do more by extending counselling services and introducing a new allowance providing much greater encouragement to the young unemployed to take advantage of new and expanded training opportunities.</p>
  174.  
  175. <h2>Labor</h2>
  176.  
  177. <p>I am not going to say much about the Labor Party tonight. Mostly, they speak for themselves.</p>
  178.  
  179. <p>Their essential policy is a massive programme of additional spending. In only six areas they promise to spend an additional $2,500 million of taxpayers&#39; money. These programmes have been costed by Government Departments, and by the Department of Finance. The figure of $2,500 million is a figure that would have to go into any Labor Budget.</p>
  180.  
  181. <p>If this amount were to be paid out of taxes, it would represent an average of over $8 a week — more than $400 a year — for every Australian taxpayer.
  182. Are Labor&#39;s policies worth that to you? Would you allow any of Labor&#39;s three leaders to spend your money in this way? And they have the nerve to suggest that they could lower taxes.</p>
  183.  
  184. <p>But there are more than 250 other programmes to which the Labor Party is committed and which have not been costed. Well, I say to Bill Hayden and the Labor Party, stand up and be costed. Stand up and tell us that these promises would be funded through higher taxation or by printing money. Stand up and tell us that these measures will fuel inflation, promote unemployment, and kill off economic growth. Labor in the 1980s is merely the Whitlam years recycled.</p>
  185.  
  186. <p>There is not a word in what Labor say or do that will encourage investment, promote growth, increase productivity, or contain the unions. And they try to kid people that they are raising the standards.</p>
  187.  
  188. <p>The Fraser-Anthony Government is the only option for the 1980s. It is only Liberal National Country Party Government that can provide sustainable economic growth. Only economic growth enables us to meet our third challenge &ndash; the provision of assistance to those in need.</p>
  189.  
  190. <p>It is our belief that the strength of Australia depends upon the strength of Australian families. That is why we are spending almost $100 million a year on family allowances. That is why we have increased the tax rebate for single-income families.</p>
  191.  
  192. <p>Our programme of family support will continue: we will establish crisis
  193. accommodation for families in distress; we will initiate a new building programme for homeless persons to help, in particular, homeless youth. And, with the States and voluntary organisations, we will establish a national children’s foundation to tackle the problems of child abuse.</p>
  194.  
  195. <h2>Fourth challenge: excellence</h2>
  196.  
  197. <p>An important and often ignored challenge facing us all is the pursuit of excellence.</p>
  198.  
  199. <p>For a continuing feature of our national development is the rich, artistic and cultural talent which complements our national character. The world of film, science, literature, theatre, opera, dance and sport has produced great Australians.</p>
  200.  
  201. <p>Australia&#39;s record at home and abroad is a catalogue of excellence. That excellence will be fostered.</p>
  202.  
  203. <p>We have provided greatly increased funds for medical research and, with the Government of Victoria, we will rebuild the Walter and Eliza Hall Institute. the courage to speak up for Australia.</p>
  204.  
  205. <p>We have increased funds for marine research in Townsville.</p>
  206.  
  207. <p>We will fully fund the rebuilding, in Sydney, of the National Institute of Dramatic Art and the Australian Film and Television School.</p>
  208.  
  209. <p>Australian film-makers and actors are winning international acclaim. We will provide special and additional incentives to induce further investment in the film industry. And we will make funds available for the support of Research Centres of Excellence in Australia&#39;s universities.</p>
  210.  
  211. <p>We have established a National Sports Institute in Canberra. And we will develop international standard sports facilities in the States and the Territories.</p>
  212.  
  213. <p>The Government will continue to support Australians of ability; to allow them, with their imagination and their capacities, to advance Australia.</p>
  214.  
  215. <h2>Final challenge: national security</h2>
  216.  
  217. <p>But finally, over-riding all these considerations, is the challenge to safeguard our national security. We must lead Australia safely through a world of increasing tension and difficulty; an increasingly dangerous world, a world of Afghanistan, Kampuchea, Iran and Iraq.</p>
  218.  
  219. <p>That is why: </p>
  220.  
  221. <ul>
  222. <li> we must contribute to the strength of the western alliance. </li>
  223. <li> we must co-operate and consult within our region.</li>
  224. <li> we must seize the opportunities provided by membership of the Commonwealth, and </li>
  225. <li> we must strengthen our links with other middle-sized powers, all of whom have an important role to play.</li>
  226. </ul>
  227.  
  228. <p>That is why we are expanding our defence forces. That is why we are building up our reserves.</p>
  229.  
  230. <p>But the defence of Australia is more than men and destroyers; patrol boats and tactical fighters. The defence of Australia is the courage to speak up for Australia.</p>
  231.  
  232. <p>We are only 14 million people on a large continent. That is why we need to co-operate with our friends and allies. We are revitalising the 5-power defence treaty with Singapore, Malaysia, New Zealand and Britain.
  233. We have contributed:</p>
  234.  
  235. <ul>
  236. <li> to the settlement of racial problems in Zimbabwe. </li>
  237. <li> to the establishment now, on a permanent basis of a new regional grouping of the Commonwealth. </li>
  238. <li> to a new sense of concern and participation in the Pacific region. </li>
  239. <li> to a new phase of co-operation with ASEAN.</li>
  240. </ul>
  241.  
  242. <p>And there is closer co-operation with the United States today than there has been for a long time. With the world as it is, we need that co-operation.</p>
  243.  
  244. <p>The last five years have seen a progressive strengthening of Australia&#39;s place in the world.</p>
  245.  
  246. <p>Is this the time to be lukewarm to the use of freedom? Is this the time to be uncritical of socialism or communism? This is the time for responsibility, not apology. This is the time for commitment, not compromise.</p>
  247.  
  248. <h2>Conclusion</h2>
  249.  
  250. <p>Undeniably, the challenges we face together are great; but our potential as a nation is even greater.</p>
  251.  
  252. <p>We are entitled to be confident of our capacity to march through the decade ahead at a better pace than almost any other nation. We are entitled to be confident of our capacity to march through the decade
  253. ahead at a better pace than almost any nation. We are entitled to be optimistic about our future.</p>
  254.  
  255. <p>A future in which Liberal government will seek power and authority, not for its own ends, but for the service of all Australian people, their freedom and their dignity. This is the future I seek for all Australians &ndash; let us work together to achieve it. Above all, let us be proud of the country, where it stands in the world.</p>
  256.  
  257. <p>We owe this much to the Australian men and women who have given their talents and their dedication, their courage and their hard work, even their lives for almost 200 years to bring us the Australia we now enjoy.
  258. Let us be enthusiastic about the tasks ahead; let us communicate this enthusiasm to one another. Let us unite in full-blooded commitment to a progressive, free and independent Australia.</p>
  259.  
  260. <h2>Responsible economic management</h2>
  261.  
  262. <p>Only in a thriving economy — with government spending, taxes and inflation kept down — can private enterprise generate the wealth which alone can create real jobs and lasting security for all Australians and their families.</p>
  263.  
  264. <p>Since July 1980 the Government has implemented or announced:</p>
  265.  
  266. <ul>
  267. <li> a reduction in the overall Budget deficit of 23% in 1980/81. </li>
  268. <li> a domestic Budget surplus of about $39m, for 1980/81. </li>
  269. <li> 50% tax indexation from 1 July 1980. </li>
  270. <li> an increase in the dependent spouse rebate to $800 from 1 July 1980. </li>
  271. <li> a rise in the sole parent rebate to $559. </li>
  272. <li> an 11% increase in payments to the States, NT and local government. </li>
  273. <li> an increase in local government tax sharing entitlements of 36% to $302m (2% of personal income tax collections), </li>
  274. <li> an inquiry into zone allowances. </li>
  275. <li> further legislation to tighten up on tax avoidance. </li>
  276. <li> an increase in interest rates payable on IEDs from 5% to 7%.</li>
  277. </ul>
  278.  
  279. <p>Building on these initiatives, in the Policy Speech the Government has announced: </p>
  280.  
  281. <ul>
  282. <li> Under our present policy of half tax indexation there will be a further tax cut of around $500 million from 1 July next year.</li>
  283. </ul>
  284.  
  285. <h3>Industrial relations</h3>
  286.  
  287. <p>Since July 1980 the Government has implemented or announced: </p>
  288.  
  289. <ul>
  290. <li> the extension of secret ballot provisions to enable individual employees to apply for a secret ballot to express their views on strike action. </li>
  291. <li> legislation to facilitate the amalgamation of unions where there is &#39;a community of interest&#39;. </li>
  292. <li> a joint Commonwealth/State review of the arbitration system.</li>
  293. </ul>
  294.  
  295. <h3>Employment and youth affairs</h3>
  296.  
  297. <p>Since July 1980 the Government has implemented or announced:</p>
  298.  
  299. <ul>
  300. <li> a 22% boost to manpower, training and youth support programmes, </li>
  301. <li> increased funds for training programmes to assist 236,000 people. </li>
  302. <li> continued funding of the School-to-Work Transition programme. </li>
  303. <li> a Commonwealth Work Experience Programme for secondary school students, </li>
  304. <li> new initiatives for trade training. </li>
  305. <li> a 34% increase in the Australian Public Service intake of apprentices in 1980/81. </li>
  306. <li> extra support for the Occupational Information Programme. </li>
  307. <li> a campaign for work and training opportunities for disabled people in support of the International Year of the Disabled, </li>
  308. <li> International Youth Exchange Programme with South Pacific countries. </li>
  309. <li> a $500,000 programme of assistance to youth organisations.
  310. Building on these initiatives, in the Policy Speech the Government has announced:</li>
  311. <li> a transition allowance to encourage young people to undertake full-time training; a higher subsidy for young unemployed for training under SYETP; development of special counselling services for young unemployed ($25 million in a full year). </li>
  312. <li> expansion of the Australian Volunteers Abroad Programme.</li>
  313. </ul>
  314.  
  315. <h2>Harnessing our Resources</h2>
  316.  
  317. <p>A balanced programme that develops our resources — minerals, energy reserves and farmlands—will not only create the maximum opportunities for Australians now, but will also conserve those resources and our environment for the future.</p>
  318.  
  319. <h3>National development and energy</h3>
  320.  
  321. <p>Since July 1980 the Government has implemented or announced:</p>
  322.  
  323. <ul>
  324. <li> a 50% increase in funding for alternative energy research. </li>
  325. <li> a $52m increase in the petroleum products freight subsidy to assist rural areas. </li>
  326. <li> commitment to funding construction of the Burdekin Dam in Queensland.
  327. Building on these initiatives, in the Policy Speech the Government has announced: </li>
  328. <li> taxation concessions to encourage the storage of liquid fuel (10 million in 1981/82). </li>
  329. <li> the extension of the $80 per tonne LPG subsidy for household use to traditional users in decentralised industries ($8-10 million per year). </li>
  330. <li> that it will encourage the States to give special assistance to local government authorities in remote areas which generate electricity from diesel fuel. </li>
  331. <li> $3 million for the States in 1981/82 for soil conservation purposes. </li>
  332. <li> additional funds through the Commonwealth Extension Services Grants Scheme to improve access to information on fuel saving technology and equipment.</li>
  333. </ul>
  334.  
  335. <h3>Industry and commerce</h3>
  336.  
  337. <p>Since July 1980 the Government has implemented or announced:</p>
  338.  
  339. <ul>
  340. <li> a 27% increase in Government assistance to manufacturing industry, </li>
  341. <li> a 20% loading to existing depreciation rates for plant. </li>
  342. <li> a 55% increase in industrial research and development funding. </li>
  343. <li> increased funds for export assistance. </li>
  344. <li> self-employed superannuation up to $1,200 per annum to be tax deductible. </li>
  345. <li> legislation to protect licensee and lessee petrol retailers. </li>
  346. <li> a PJT Inquiry into petrol product prices. </li>
  347. <li> a commitment to protecting jobs in textiles, clothing and footwear industries and a new programme of assistance including bounties, duties, quotas and tariffs. </li>
  348. <li> a National Tourism Outlook Conference to be held in 1981.
  349. Building on these initiatives, in the Policy Speech the Government has announced: </li>
  350. <li> extension of the private company retention allowance during the life of the next Parliament. </li>
  351. <li> removal of the present specific exclusion from the investment allowance of plant for use in connection with amusement or recreation ($5 million).</li>
  352. </ul>
  353.  
  354. <h3>Primary industry</h3>
  355.  
  356. <p>In the Policy Speech the Government has announced:</p>
  357.  
  358. <ul>
  359. <li> tax concessions for capital costs involved in connecting mains electricity in rural and remote areas ($5 million). </li>
  360. <li> three year funding of the Primary Industry Bank&#39;s operations. </li>
  361. <li> tax concessions to compensate for the cost of private electricity generation in country areas (up to $5 million). </li>
  362. <li> special depreciation allowance for new machinery used in agricultural, pastoral and forestry operations — also to apply to the purchase of new vessels in the fishing industry ($7 million). </li>
  363. <li> Government financial support for wool promotion on a three year basis. </li>
  364. <li> full tax deductibility of capital expenditure on soil conservation by a primary producer 
  365. ($ 1 million). </li>
  366. <li> maintaining concessions for farmers for full write-off of the cost of providing bores, dams and reticulation facilities. </li>
  367. <li> withdrawals from IEDs can be made up to 31 August.</li>
  368. </ul>
  369.  
  370. <h3>Transport</h3>
  371.  
  372. <p>Since July 1980 the Government has implemented or announced:</p>
  373.  
  374. <ul>
  375. <li> signature of a new Two Airline Agreement encouraging greater competition between TAA/Ansett and allowing regional airlines to operate over sections of domestic trunk routes. </li>
  376. <li> an inquiry into domestic airfares, </li>
  377. <li> a $145 million major airport development programme. </li>
  378. <li> a Hobart/Christchurch airlink by Ansett/TAA (awaiting New Zealand Government approval). </li>
  379. <li> the introduction of international air services from Townsville to Honolulu, Los Angeles and New Zealand. </li>
  380. <li> signature of an agreement with South Australia to enable the Adelaide/Crystal Brook railway 
  381. standardisation project to commence, </li>
  382. <li> an allocation of $3,650 million to the States, the Northern Territory and local government over the next five years for roads. </li>
  383. <li> $30 million for Tasmanian Freight Equalisation in 1980/81.
  384. Building on these initiatives, in the Policy Speech the Government has announced: </li>
  385. <li> a firm commitment of $10 million for the first stage of the construction of the Alice Springs/Darwin railway and the provision of funds to complete the railway within ten years.</li>
  386. </ul>
  387.  
  388. <h3>Post and telecommunications</h3>
  389.  
  390. <p>Since July 1980 the Government has implemented or announced:</p>
  391.  
  392. <ul>
  393. <li> a commitment to cable and subscription TV </li>
  394. <li> increased funds for the ABC in 1980/81 </li>
  395. <li> commencement of multicultural TV services in Sydney and Melbourne. </li>
  396. <li> continuing reductions in a range of telephone call charges. </li>
  397. <li> tendering for the domestic satellite.</li>
  398. </ul>
  399.  
  400. <h3>Science and environment</h3>
  401.  
  402. <p>Since July 1980 the Government has implemented or announced: </p>
  403.  
  404. <ul>
  405. <li> approval for a $52 million rebuilding programme in the Antarctic over 10 years. </li>
  406. <li> the nomination of the Great Barrier Reef for the World Heritage list. </li>
  407. <li> initial allocation for construction of oceanographic vessel. </li>
  408. <li> $16 million for Australian scientific research. </li>
  409. <li> development of a National Conservation Strategy in co-operation with the States and the Northern Territory.</li>
  410. </ul>
  411.  
  412. <h2>Policies for people</h2>
  413.  
  414. <p>Helping people to become home owners, improving the standards of our children&#39;s education, and concentrating health and welfare services on the effective support of those most in need is the best way to support family life in Australia.</p>
  415.  
  416. <h3>Education</h3>
  417.  
  418. <p>Since July 1980 the Government has implemented or announced: </p>
  419.  
  420. <ul>
  421. <li> a 3.2% increase in real terms in spending on schools in 1981. </li>
  422. <li> a 20% increase in major allowances under the Secondary Allowance and Assistance for Isolated Children Schemes. </li>
  423. <li> $23 million for the Disadvantaged Schools Programme to improve standards. </li>
  424. <li> a 10% increase in Tertiary Education Allowances.</li>
  425. </ul>
  426.  
  427. <p>Building on these initiatives, in the Policy Speech the Government has announced: </p>
  428.  
  429. <ul>
  430. <li> increased emphasis on vocational and technical education. </li>
  431. <li> additional capital grants of $25 million over three years (1981-83) for non-government schools in the States and NT for the provision of new places. </li>
  432. <li> compression of the existing six levels of non-government schools to three levels in the life of the next Parliament ($5.8 million over three years). </li>
  433. <li> an increase in the per capita grants to Level 6 non-government schools to 40% of overall government schools standard running costs in the life of the next Parliament ($44.8 million a year by the third year). </li>
  434. <li> an additional $2 million a year for the Schools Commission from 1981 to develop educational programmes for severely handicapped children. </li>
  435. <li> commencement of a $4 million, three year pilot programme, to provide on loan video facilities to isolated students in areas without regular television services, commencing with School of the Air students. </li>
  436. <li> an increase in the basic boarding allowance under the Assistance to Isolated Children Scheme to $780 a year from 1981 ($2.7 million in a full year). </li>
  437. <li> a per capita grant of $30 a pupil a year for two years to non-profit making ethnic part-time schools, provided they have an open entry policy ($3 million). </li>
  438. <li> $1 million for the establishment of Research Centres of Excellence in a number of universities in 1981, and allocation of a further 15 million during the 1982-84 triennium. </li>
  439. <li> additional funds for the Tertiary Education Commission to support the establishment of courses in community languages in universities and/or CAEs.</li>
  440. </ul>
  441.  
  442. <h3>Housing</h3>
  443.  
  444. <p>Since July 1980 the Government has implemented or announced:</p>
  445.  
  446. <ul>
  447. <li> a major forward commitment for welfare housing with the States involving a Commonwealth guarantee of a base funding level of $200 million a year for five years from July 1981. </li>
  448. <li> a significant increase in home value limits under the Home Savings Grants Scheme.
  449. Building on these initiatives, in the Policy Speech the Government has announced: </li>
  450. <li> further improvements to the Home Savings Grants Scheme, involving a full year cost of $25 million and to apply from 1 October 1980, include: 
  451. — a family bonus of $500 for families with one dependent child and $1,000 for families with two or more dependent children. This would increase the maximum grant to $2,500 for families with one child and to $3,000 for families with two or more children. 
  452. — an increase in the value of homes on which the maximum grant is obtainable to $60,000 reducing to nil grant at a value of $70,000. 
  453. — widening of the forms of savings acceptable for the grant.</li>
  454. <li> full tax deductibility of home insulation costs for a person&#39;s first home where that home was purchased or where construction commenced after 1 October 1980 ($5 million in a full year).</li>
  455. </ul>
  456.  
  457. <h3>Health</h3>
  458.  
  459. <p>Since July 1980 the Government has implemented or announced:</p>
  460.  
  461. <ul>
  462. <li> a 30% rise in funds for Medical Research. </li>
  463. <li> an additional $75m for the Hospital Benefits Reinsurance Fund. </li>
  464. <li> an increase in the Domiciliary Nursing Care Benefit from $2 to $3 a day. </li>
  465. <li> a new programme of &#39;aids for daily living&#39; for the disabled. </li>
  466. <li> improvements to the Isolated Patients Travel and Accommodation Assistance Scheme. 
  467. Building on these initiatives, in the Policy Speech the Government has announced:</li>
  468. <li> that it will join with the Victorian Government in the construction of a new building for the Walter and Eliza Hall Institute (Commonwealth share: $ 11.25 million). </li>
  469. <li> an additional $500,000 for continuation of the national development of the &#39;help yourself&#39; health promotion campaign. </li>
  470. <li> an additional $200,000 support for alcohol and drug abuse rehabilitation. </li>
  471. <li> in line with a previous commitment, benefits will be increased from the first pension pay day in November to cover the cost of fees for 70% of patients in non-Government nursing homes.</li>
  472. </ul>
  473.  
  474. <h3>Welfare</h3>
  475.  
  476. <p>Since July 1980 the Government has implemented or announced:</p>
  477.  
  478. <ul>
  479. <li> an increase in spending to $9.9 billion in 1980/81. </li>
  480. <li> $52.5 million in 1980/81 as part of a three year $225 million programme for aged persons accommodation. </li>
  481. <li> $4 million in 1980/81 as part of a three year $12 million programme for senior citizens centres. </li>
  482. <li> commitment of $155 million over three years for handicapped persons facilities commencing 1 July 1980. </li>
  483. <li> an increase in pensions in November 1980 of $3.05 ($5.10 married). </li>
  484. <li> a substantial increase in income limits for unemployment and sickness benefits. </li>
  485. <li> from November 1980 a $2 a week increase in unemployment benefits for those 18 and over without dependents.</li>
  486. <li> from November 1980 extension of the supporting parents benefit to cover the first six months of sole parenthood. </li>
  487. <li> increased allowances for children of pensioners and beneficiaries. </li>
  488. <li> increased allowances for handicapped children to assist an estimated 27,000 children by June 1981. </li>
  489. <li> support for the International Year of Disabled Persons 1981. </li>
  490. <li> rights of appeal for pensioners and beneficiaries to the Administrative Appeals Tribunal.</li>
  491. </ul>
  492.  
  493. <p>Building on these initiatives, in the Policy Speech the Government has announced:</p>
  494.  
  495. <ul>
  496. <li> $10 million for a three year homeless persons assistance programme, with special priority for homeless young people. </li>
  497. <li> an increase in the personal care subsidy for residents in hostels for the aged and disabled from $15 per week to $20 per week ($5.8 million per year). </li>
  498. <li> expansion of the Family Support Services Scheme ($10 million over three years). </li>
  499. <li> Crisis accommodation for families in distress (in consultation with the States). </li>
  500. <li> establishment of a National Children&#39;s Foundation (in consultation with the States and voluntary organisations).</li>
  501. </ul>
  502.  
  503. <h3>Veterans&#39; affairs</h3>
  504.  
  505. <p>Since July 1980 the Government has implemented or announced:</p>
  506.  
  507. <ul>
  508. <li> a rise in repatriation and other benefits from November 1980. </li>
  509. <li> consideration of only half the disability pension in determining eligibility for fringe benefits. </li>
  510. <li> an increase in the maximum loan for Defence Service Homes to $25,000 and a reduced waiting period of 10 months. </li>
  511. <li> establishment of an advisory committee on the Commonwealth Institute of Health study into the possible effects on veterans and their children of herbicides and defoliants including 
  512. Agent Orange.</li>
  513. </ul>
  514.  
  515. <h2>Community development</h2>
  516.  
  517. <p>Safeguarding individual rights, promoting equality of opportunity and encouraging the pursuit of excellence in the arts are essential elements for a strong and vital community.</p>
  518.  
  519. <h3>Attorney-General</h3>
  520.  
  521. <p>Since July 1980 the Government has implemented or announced:</p>
  522.  
  523. <ul>
  524. <li> $32 million for legal aid (in 1980/81). </li>
  525. <li> ratification of the International Covenant on Civil and Political Rights. </li>
  526. <li> establishment of the Human Rights Bureau. </li>
  527. <li> implementation of legislation to reform procedures for judicial review of administrative action. </li>
  528. <li> the creation of an Australian Bureau of Criminal Intelligence. </li>
  529. <li> special judicial inquiry into drug related organised crime. </li>
  530. <li> the opening of the Institute of Family Studies.</li>
  531. </ul>
  532.  
  533. <p>Building on these initiatives, in the Policy Speech the Government has announced: </p>
  534.  
  535. <ul>
  536. <li> reintroduction of legislation on both the Human Rights Commission and Freedom of Information. </li>
  537. <li> introduction of legislation on Complaints against the Police.</li>
  538. </ul>
  539.  
  540. <h3>Aboriginal affairs</h3>
  541.  
  542. <p>Since July 1980 the Government has implemented or announced:</p>
  543.  
  544. <ul>
  545. <li> a 19% increase in direct spending by the Department of Aboriginal Affairs. </li>
  546. <li> the establishment of the Aboriginal Development Commission from 1 July 1980 with funds of $23.8m in 1980/81. </li>
  547. <li> $59.9 million for Aboriginal housing and health. 
  548. Building on these initiatives, in the Policy Speech the Government has announced: </li>
  549. <li> responsibility for Aboriginal housing to be transferred from the Department of Aboriginal Affairs to the Aboriginal Development Commission. </li>
  550. <li> $50 million for environmental health improvement over five years.</li>
  551. </ul>
  552.  
  553. <h3>Immigration and ethnic affairs</h3>
  554.  
  555. <p>Since July 1980 the Government has implemented or announced:</p>
  556.  
  557. <ul>
  558. <li> $28 million for adult migrant and refugee education programme. </li>
  559. <li> commencement of multicultural TV services in Sydney and Melbourne. </li>
  560. <li> further expansion of the telephone interpreter service. </li>
  561. <li> the introduction of a system of nomination of overseas relatives and friends of Australian residents.
  562. Building on these initiatives, in the Policy Speech the Government has announced:</li>
  563. <li> upgrading of adult migrant education. </li>
  564. <li> further expansion of the telephone interpreter service. </li>
  565. <li> a public awareness programme to encourage migrants to obtain citizenship. </li>
  566. <li> the expansion of the Bilingual Information Officer system. </li>
  567. <li> a review of NUMAS. </li>
  568. <li> an extension of the refugee programme.</li>
  569. </ul>
  570.  
  571. <h3>Home affairs</h3>
  572.  
  573. <p>Since July 1980 the Government has implemented or announced:</p>
  574.  
  575. <ul>
  576. <li> increased funding for culture and the arts.</li>
  577. <li> $7.1m for National Gallery acquisitions. </li>
  578. <li> a 45% rise in funds for the Sports Development Programme. </li>
  579. <li> preparation of a Plan of Action on combatting discrimination following the UN Mid Decade for Women Conference in Copenhagen.</li>
  580. </ul>
  581.  
  582. <p>Building on these initiatives, in the Policy Speech the Government has announced:</p>
  583.  
  584. <ul>
  585. <li> tax concessions to encourage investment in the production of Australian films ($2 million). </li>
  586. <li> establishment of permanent homes for both the Film and TV School ($9 million over five years) and the National Institute of Dramatic Art ($3 million). </li>
  587. <li> further development of the National Library. </li>
  588. <li> $25 million, on a dollar for dollar basis, with the States and Territories, over three years, for the development of international standard sports facilities. </li>
  589. <li> support for the Australian National Games and the National Athlete Award Scheme ($350,000). </li>
  590. <li> special assistance for the development of sport and recreation for the disabled.</li>
  591. </ul>
  592.  
  593. <h2>A strong and secure Australia</h2>
  594.  
  595. <p>Unless we secure and defend our freedom today, there will be no free tomorrow. </p>
  596.  
  597. <h3>Foreign affairs and defence</h3>
  598.  
  599. <p>Since July 1980 the Government has implemented or announced:</p>
  600.  
  601. <ul>
  602. <li> $547m for foreign aid. </li>
  603. <li> a 7% real growth in defence spending this year and in following years as part of the five year $17.6 billion programme. </li>
  604. <li> a record $2,000 million peacetime naval construction programme. </li>
  605. <li> a replacement for HMAS Melbourne. </li>
  606. <li> commitment to build two new FFG-type destroyers at Williamstown, </li>
  607. <li> funds for accelerated increases in defence manpower in regular and reserve forces. </li>
  608. <li> payment of certain assurance premiums for reservists. </li>
  609. <li> Darwin to be long term base for a Tactical Fighter Force Squadron. </li>
  610. <li> tenders for 940 trucks for the Army. </li>
  611. <li> potential of $800 million of defence work for Australian industry.</li>
  612. </ul>
  613.  
  614. <p>Liberal policies are designed to enable all Australians to live free and independent lives in a secure nation. They are policies to promote the enterprise and initiative which will enable people to secure their own future through the rewards of their own efforts.</p>
  615.  
  616. <p>They are also policies of compassion and concern for those in need.</p>
  617.  
  618. <p>Lead on, Liberal.</p>
  619.  
  620. <p>Note: Costings
  621. The programme initiatives announced in the Policy Speech will cost approximately $185 million in a full year. The taxation measures announced in the Policy Speech involve a foregoing of revenue of approximately $40 million in a full year (not including continuation of our present policy of half tax indexation).</p>
  622.  
  623. <p><em>1980 Policy speech supplementary statements</em></p>
  624.  
  625. <h2>Responsible economic management</h2>
  626.  
  627. <p>The fight against inflation will go on. The central objective of the Government&#39;s economic policy is to reduce inflation and thereby promote real economic growth and employment. Our policies will continue to be directed to:</p>
  628.  
  629. <ul>
  630. <li> maintaining the environment for economic growth and increased employment. </li>
  631. <li> underpinning the development of our vast mineral and energy resources. </li>
  632. <li> encouraging our rural and manufacturing industries to grow and prosper. 
  633. A strong private sector is essential for economic success. It should be encouraged, not fettered, by government.
  634. This is the only way to: </li>
  635. <li> raise our living standards. </li>
  636. <li> create new jobs. </li>
  637. <li> provide the capacity to help the disadvantaged.</li>
  638. </ul>
  639.  
  640. <h2>Inflation</h2>
  641.  
  642. <p>The Government&#39;s policy has already brought Australia&#39;s inflation rate down from a record 17.6% under the Labor Government to 10.7%. This is 2-3 percentage points below the industrial world&#39;s average. This achievement is the result of five years of consistent economic policies designed to counter inflation.</p>
  643.  
  644. <p>The Government&#39;s own house is in order. </p>
  645.  
  646. <p>While maintaining a strong commitment to revenue sharing with the States and local government, overall Federal spending is on a very tight rein. Since 1976 spending has increased in real terms on average by only slightly above 1% a year — by far the lowest rate of increase for a long time. The Government has wiped out the domestic Budget deficit and, for this financial year, estimated a domestic surplus of some $39 million — the first surplus in seven years. </p>
  647.  
  648. <p>This has reduced the pressure on interest rates and lessened the impact on Australia of increases in those rates overseas. The individual buying a home, the investor creating jobs, the producer and the consumer, all benefit. This reflects the stability and consistency in the 
  649. Government&#39;s economic management. The results are impressive:</p>
  650.  
  651. <ul>
  652. <li> the highest employment increase for 10 years — in the year to July 1980. </li>
  653. <li> a considerable improvement in Australia&#39;s competitive position. </li>
  654. <li> the value of exports up by one third in 1979/80. </li>
  655. <li> foreign investment at record levels. </li>
  656. <li> the best prospects for business in years. </li>
  657. <li> an encouraging lift in expenditure on personal consumption. </li>
  658. <li> huge new investments in industry and resource development.</li>
  659. </ul>
  660.  
  661. <p>We are now going in the right direction but we must try to reduce inflation further to create more jobs and protect people on fixed incomes. To a large extent success will depend on moderation in wage demands, a reduction in industrial disputes and continuing tight control on government spending at all levels.</p>
  662.  
  663. <h2>Taxation</h2>
  664.  
  665. <p>The Government will maintain its declared taxation objectives: </p>
  666.  
  667. <ul>
  668. <li> to keep taxes at the lowest level possible compatible with responsible economic management and community needs. </li>
  669. <li> to distribute the tax burden as fairly as possible, with particular concern for low income families. </li>
  670. <li> to provide incentives for initiative and enterprise.</li>
  671. </ul>
  672.  
  673. <h3>Personal</h3>
  674.  
  675. <p>Taxation scales have been reduced and simplified during our term of office, We have introduced new concessions and incentives. We are clamping down on tax avoidance. </p>
  676.  
  677. <p>Today most individual taxpayers pay tax at the standard rate of 32c in the dollar. </p>
  678.  
  679. <p>The first $4,041 is tax free — $6,542 for a man with a dependent wife. Tax indexation at 50% and the increase in a wife&#39;s allowance from 1 July this year means that a wage earner on standard rate with dependent wife now pays $4.76 a week less tax.</p>
  680.  
  681. <p>Under our present policy of half tax indexation there will be a further tax cut of around $500 million from 1 July next year.</p>
  682.  
  683. <p>The top marginal tax rate has been reduced from 65c in the dollar to 60c. This is the lowest top rate since 1942. By reducing the number of steps in the tax rate scale from 7 to 3, taxpayers no longer move into higher tax brackets as quickly as before.</p>
  684.  
  685. <p>Hard work, overtime and promotion are worthwhile once again. We have restored the rewards for enterprise and achievement. We have also made adjustments in the tax system to strengthen our commitment to the family and those with special needs:</p>
  686.  
  687. <ul>
  688. <li> we have doubled the dependent wife&#39;s allowance to $800. </li>
  689. <li> we have increased the sole parent&#39;s rebate by 180% to $559. </li>
  690. <li> we have helped lower income earners by increasing the tax free threshold from $2,579 in 1975/76 to $4,041, </li>
  691. <li> we have introduced a special tax concession for self employed persons and those not covered 
  692. by employer superannuation to assist them in providing for retirement. </li>
  693. <li> we have announced an inquiry into zone allowances for those living in remote areas. </li>
  694. <li> we have abolished all Commonwealth estate and gift duties.</li>
  695. </ul>
  696.  
  697. <p>The contrast with Labor&#39;s period of office is dramatic. In those three years personal tax collections rose by 125% as men and women from all walks of life were dragged into paying higher taxes, If Labor&#39;s 1975 tax scales had remained, a taxpayer on average weekly earnings today with a dependent wife and child would be paying an extra $22.55 a week more tax. </p>
  698.  
  699. <h3>Business</h3>
  700.  
  701. <p>We believe fair rewards for business are just as important as fair rewards for people. Only a healthy, profitable private sector can provide real, lasting, secure jobs. Concessions to our primary and secondary industries have been designed to foster profitability and reinvestment of 
  702. profits. We have, amongst other measures:</p>
  703.  
  704. <ul>
  705. <li> reintroduced the investment allowance. </li>
  706. <li> allowed accelerated depreciation to assist business with technological change. </li>
  707. <li> raised the Private Company Retention Allowance from 50% to 70%, which is a benefit of $60 million in a full year. </li>
  708. <li> introduced income equalisation deposits for primary producers. </li>
  709. <li> abolished previous income limits on the tax averaging scheme for primary producers. </li>
  710. <li> stimulated resource development, oil exploration and energy conservation through special tax concessions.</li>
  711. </ul>
  712.  
  713. <p>Overall, we have created a fair, balanced tax system. That is why we are taking a hard line on tax avoidance. We are committed to continuing our restraint on public expenditure and ensuring we get value for money so that we can continue to keep taxes down. 
  714. Unlike Labor, we know that governments have no money of their own to spend — only taxpayers&#39; money.</p>
  715.  
  716. <h2>Industrial relations</h2>
  717.  
  718. <p>The Government&#39;s principal objectives are to: </p>
  719.  
  720. <ul>
  721. <li> work to improve the industrial relations climate. </li>
  722. <li> protect the rights of individuals and the public interest. </li>
  723. <li> emphasise the responsibility of all parties to meet their obligations. </li>
  724. <li> improve conciliation and arbitration procedures.</li>
  725. </ul>
  726.  
  727. <p>The Government is concerned that almost four million working days were lost through industrial diputes last year, This is an improvement on the record of over six million working days lost under the Labor Government in 1974. But the figure is still too high — and far too costly for individual employers, employees and their families,and the community as a whole.
  728. There are Constitutional limits on the Government&#39;s industrial relations powers. Nevertheless, we have already acted within those powers to protect the public interest.</p>
  729.  
  730. <p>We have legislated to:</p>
  731.  
  732. <ul>
  733. <li> establish the National Labour Consultative Council and ensure regular consultation at national level, </li>
  734. <li> provide secret postal ballots for elections in Federal employer and employee organisations. </li>
  735. <li> require industrial organisations to produce audited annual financial accounts to members. </li>
  736. <li> protect genuine conscientious objectors to union membership, </li>
  737. <li> improve the procedures of the Conciliation and Arbitration Commission. </li>
  738. <li> extend grounds for deregistration of organisations acting to damage the interests of the community. </li>
  739. <li> strengthen the Commission&#39;s powers to deal with demarcation disputes. </li>
  740. <li> establish the Industrial Relations Bureau to secure observance of the <em>Conciliation and Arbitration Act</em>, Regulations and Awards.</li>
  741. </ul>
  742.  
  743. <p>The task is a continuing one. For the future, the Government proposes to:</p>
  744.  
  745. <ul>
  746. <li> extend the secret ballot provisions to enable individual employees to apply for a secret ballot to express their views on strike action. </li>
  747. <li> legislate to facilitate the amalgamation of unions where there is a &#39;community of interest&#39;. </li>
  748. <li> in consultation with industry, initiate a major campaign of advice and assistance to all levels of management on the conduct and practice of industrial relations.
  749. The Government remains firmly committed to the principle of conciliation and arbitration.</li>
  750. </ul>
  751.  
  752. <h2>Employment</h2>
  753.  
  754. <p>We have made substantial progress in creating more jobs. 205,200 more people joined the work force in the year to August 1980. Unemployment is still high, but Australia is making better progress than many other developed countries. Through the Commonwealth Employment Service 
  755. alone half a million jobs were filled last year. Those placed included 9,000 disabled people.</p>
  756.  
  757. <p>Three out of four jobs in Australia are in the private sector. That is why the Government is strongly committed to encouraging its growth. Over the next few years resource and manufacturing development projects will create at least 60,000 new jobs directly and thousands more indirectly throughout industry and commerce. </p>
  758.  
  759. <p>In our five years in Government more than 570,000 Australians have received specific help through our manpower and training programmes. We have given special emphasis in these programmes to job and apprenticeship training for young people. All our programmes have been reviewed to meet the challenge of technological change and the special needs of the nation&#39;s new development projects. We will spend $139 million on manpower, training programmes and youth support to assist another 236,000 Australians this year.</p>
  760.  
  761. <p>New features of job programmes will include reform of the trade training system to increase the supply of tradesmen trained in Australia. This will include shortened indentures for those with appropriate qualifications and experience and renewal of the $1,000 bonus scheme for, apprentices in short supply. Australia is now training an all time high number of apprentices and a record level of first year apprentices. To complement this scheme and the School-to-Work Transition Policy, the Government will also provide further assistance to young people who find difficulty in obtaining regular work. This will provide for: </p>
  762.  
  763. <ul>
  764. <li> a transition allowance (unemployment benefit plus $6) for young people unemployed four months or more who undertake a transition course, and a similar allowance for those unemployed for eight months or more who take up any full time training course in Technical and Further Education (TAFE) institutions likely to lead to employment.</li>
  765. <li> a higher subsidy (up to $80 a week) for the training under the Special Youth Employment Training Programme (SYETP) of those unemployed 18 to 24 year olds who have been out of work for eight out of twelve months.</li>
  766. <li> automatic eligibility to SYETP for those who successfully complete a transition course and need further on-the-job training.</li>
  767. <li> development of special counselling services for young unemployed registered with the Commonwealth Employment Service for eight months or more.</li>
  768. </ul>
  769.  
  770. <p>This new programme is a further expression of the Government&#39;s commitment to assisting young people.</p>
  771.  
  772. <h2>Harnessing our Resources</h2>
  773.  
  774. <h2>Resources</h2>
  775.  
  776. <p>The Government is firmly committed to the development of Australia&#39;s abundant natural  resources — one of the great tasks for the 80s — for the benefit of the Australian people. Its objective is to ensure that Australia takes full advantage of its unique combination of natural resources, competitively priced energy, improving cost competitiveness and proximity to major growth markets.</p>
  777.  
  778. <p>The Government has already acted — and will continue to act — to: </p>
  779.  
  780. <ul>
  781. <li> stimulate increased exploration and development. </li>
  782. <li> encourage more processing of raw materials in Australia. </li>
  783. <li> attract overseas investment, with due regard for Australian participation in resource projects and the assertion of our national interests.</li>
  784. <li> assist development through support for essential infrastructure.</li>
  785. </ul>
  786.  
  787. <p>This has led to an estimated $29 billion investment in major mining and manufacturing projects, either committed or under final study. Three-quarters of this expenditure should be on goods and services bought in Australia. Around 60,000 jobs will be created directly and thousands more will be created indirectly in supply and service industries. In support of this development the Government has already approved a total investment of $4.7 billion in infrastructure programmes, e.g. railway electrification; electricity generation; and coal export facilities.</p>
  788.  
  789. <h2>Energy</h2>
  790.  
  791. <p>Our aim is to ensure adequate energy supplies for Australia for the long term future and to help energy hungry countries whose living standards are threatened. </p>
  792.  
  793. <p>Our national energy policies are based on four goals:</p>
  794.  
  795. <ul>
  796. <li> to conserve petroleum fuels to the maximum. </li>
  797. <li> to convert from oil to other energy sources (e.g. gas, electricity, coal). </li>
  798. <li> to explore vigorously for oil and gas. </li>
  799. <li> to develop the production of synthetic fuels (e.g. oil from coal and shale, ethanol from biomass, methanol and fuels from renewable sources).
  800. The world is consuming oil at twice the rate it is finding it and the price of oil must reflect its scarcity value. Most of the world is energy-hungry, with few or no local substitutes for oil. Australia is energy-rich in coal and uranium and has significant resources of natural gas. Therefore we must accept and develop our responsibility as a major international supplier of energy. We can, and must, be a major energy exporter, consistent with our own domestic needs.</li>
  801. </ul>
  802.  
  803. <h3>Oil</h3>
  804.  
  805. <p>Australia&#39;s local oil reserves are diminishing rapidly. Without further major oil discoveries our current 67% self-sufficiency will fall to 50% in 1985, 40 % in 1990 and to as low as 10% by the turn of the century.
  806. The key to achieving our goals is the import parity pricing of oil (i.e. reflecting its world scarcity value).</p>
  807.  
  808. <p>The high cost synthetic fuel industry depends for its competitive survival upon the maintenance of import parity pricing. It cannot compete if oil prices are held down artificially. Yet, without synthetics Australia would be energy hungry and perilously dependent on the uncertainty of high cost oil imports. The Rundle shale oil development and other large synthetic enterprises like it are vital to ensure energy for the years ahead.</p>
  809.  
  810. <h3>Gas</h3>
  811.  
  812. <p>The Government will support the development of LPG as a premium fuel with top priority for automotive use. A clear price differential between LPG and petrol will be maintained. The $80 a tonne subsidy paid to domestic consumers will be extended to traditional users of LPG in decentralised industries. Where practical natural gas pipelines will be extended in country areas.</p>
  813.  
  814. <h3>Electricity</h3>
  815.  
  816. <p>We will continue to co-operate with the States in infrastructure financing for the increased development of electricity generation capacity to meet heavier demands. Growth in power generation in this decade will be greater than in any two previous decades. The concept of an electric power grid for south-eastern Australia is now under intensive study.</p>
  817.  
  818. <h3>Uranium</h3>
  819.  
  820. <p>The Government recognises that many countries will be compelled to develop nuclear power generation in order to meet their energy needs. Australia will supply uranium for peaceful purposes under the strictest safeguards, including the monitoring of materials and the disposal of radioactive wastes.</p>
  821.  
  822. <h3>Research and development</h3>
  823.  
  824. <p>The Government will continue to expand energy research and development through existing agencies particularly in the field of renewable energy sources.</p>
  825.  
  826. <h3>Water, soil and decentralisation</h3>
  827.  
  828. <p>The Government will also: </p>
  829.  
  830. <ul>
  831. <li> expand the Water Resources programme in partnership with the States. </li>
  832. <li> allocate $3 million to the States in 1981/82 for soil conservation purposes. </li>
  833. <li> continue to aid regional development programmes with the advice of the Decentralisation Advisory Board.</li>
  834. </ul>
  835.  
  836. <h2>Manufacturing industry</h2>
  837.  
  838. <p>A vigorous and profitable manufacturing industry is fundamental to real economic growth and new jobs. The Government is committed to the development of efficient, outward-looking Australian industries.
  839. Tariff reviews, sensitively approached, have a role to play in facilitating desirable changes in industry structure and in encouraging greater specialisation. In the longer term, the Government considers that Australia will be best served by an industry structure placing less reliance on protective measures than at present. However, movement toward this goal must necessarily be gradual and appropriately timed. Where reductions are appropriate we will give industry advance warning and time to adapt to change.</p>
  840.  
  841. <p>The record of industry in the past year reflects its own enterprise and the Government&#39;s success in fighting inflation: </p>
  842.  
  843. <ul>
  844. <li> internationally, the competitiveness of Australian industry is at its highest level for many years. </li>
  845. <li> employment in manufacturing rose by 41,000. </li>
  846. <li> factory production expanded by 7% in real terms. </li>
  847. <li> manufacturing investment increased significantly. </li>
  848. <li> the volume of exports reached a record level.</li>
  849. </ul>
  850.  
  851. <h3>Incentives</h3>
  852.  
  853. <p>The Government has provided significant assistance and incentives for the private sector. It has: </p>
  854.  
  855. <ul>
  856. <li> greatly increased direct financial assistance to manufacturing industry over the past five years to a record $416 million in 1980/81.</li>
  857. <li> provided $540 million over the five years to June 1981 for modernisation assistance through the reintroduction of the investment allowance. </li>
  858. <li> increased depreciation rates on plant and equipment by 20% in the last Budget. </li>
  859. <li> lifted industrial research and development grants by 180% over five years to $54 million. </li>
  860. <li> increased export development incentives by 225% over five years to $260 million. </li>
  861. <li> ensured Australian firms can participate in the current upgrading of Australia&#39;s defence force with business worth in excess of $800 million this year.</li>
  862. </ul>
  863.  
  864. <p>The Government will continue to take positive action to encourage the development of an outward-looking, specialised and innovative manufacturing sector. The Government will continue its strong support for export incentives beyond 1982. Industrial research and development grants and export incentives will continue to be essential elements of our industrial policy. We will avoid overregulation of business, which stultifies initiative and enterprise and imposes costs that must ultimately be borne by the public.</p>
  865.  
  866. <h2>Small business</h2>
  867.  
  868. <p>There are half a million small businesses in Australia, about 90% of Australian businesses, providing 40% of total private employment. They are a central feature of the Australian free enterprise system. The most important assistance the Government has given to small business has been to lessen the burden of inflation. We have also helped small business to help itself.</p>
  869.  
  870. <p>We have eased its taxation burden by $60 million a year by increasing the Division 7 retention allowance from 50% to 70%. During the life of the next Parliament this allowance will be extended further.</p>
  871.  
  872. <p>We have also:</p>
  873.  
  874. <ul>
  875. <li> given a special tax concession to self employed persons and employees not covered by employer superannuation arrangements to encourage them to make a proper provision for their retirement. </li>
  876. <li> assisted with finance by relaxing constraints on the Commonwealth Development Bank&#39;s powers to lend to all small farms. </li>
  877. <li> abolished all estate and gift duties.</li>
  878. </ul>
  879.  
  880. <h2>Tourism</h2>
  881.  
  882. <p>Tourism is an important Australian industry and has outstanding prospects for further growth. In 1979 tourism earned around $650 million in foreign exchange and between 1973/74 and 1985 it should have created some 60,000 new jobs. The Government&#39;s policy is to promote Australia&#39;s tourist attractions and encourage a vigorous, competitive industry.</p>
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<h2>Challenges</h2>

<p>Tonight, I want to talk to you about the challenges and opportunities that lie before us. First, we must maintain responsibility in economic affairs because, without that, all else fails. Second, we must harness this nation's resources in a co-ordinated and responsible programme of national development. Third, we must see that from the prosperity we generate, we provide adequately for those in need. Fourth, as individuals and as a nation, we must encourage ability and cultivate excellence. And finally, in a world where there is conflict, division and illusion, we must guide Australia safely through the difficulties and the dangers.</p>

<h2>First challenge: responsible economic management</h2>

<p>The first challenge facing Government in the 80s is the pursuit of responsible economic management. Responsible economic management may sometimes sound far-away from our everyday lives. But responsible economic management has brought our inflation rate to: </p>

<ul>
<li> much less than it was in 1975. </li>
<li> much less than the inflation rate of Britain. </li>
<li> below that of the United States. </li>
<li> and below the average of advanced industrialised countries. </li>
</ul>

<p>But there is more to be done. Continued economic responsibility demands restraint in Government expenditure. And last year, we achieved the largest ever recorded reduction in the Budget deficit $1.5 billion. And now, this financial year, the domestic deficit will be wiped out altogether.</p>

<h2>Taxation</h2>

<p>We earlier committed ourselves to reform the tax scales. We have fulfilled that commitment absolutely. Under the Hayden/Labor scales: </p>

<ul>
<li> from $7,000, paid 35 cents in the dollar. </li>
<li> from $10,000 you paid 45 cents in the dollar. </li>
<li> from $15,000 you paid 55 cents in the dollar.</li>
</ul>

<p>Under our scales, you are on the standard rate of 32 cents in the dollar, right up to $17,239. And on the first of July this year, taxes were cut by over $600 million — of particular benefit to single income families.
Under our present policy of half tax indexation there will be a further tax cut of around $500 million from July the first next year. Of course, we would have preferred to go further. But any tax cut purchased at the cost of higher inflation would be no tax cut at all. And we will continue to fight inflation. No wonder British investors recently said that their confidence in the Australian economy was 'Conditional upon the continuation of a Liberal Government.' And we plan to keep it that way.</p>

<h2>Second challenge: development</h2>

<p>And so I come to the second challenge — the need for a broad based and responsible programme of national development.</p>

<p>In my Policy Speech in 1977, I said Australia could look forward to $6,000 million of development. Some amazement was expressed at this — even disbelief. Because the Labor Party had stopped development dead in its tracks. Yet in the two years after that, more than $6,000 million was invested in mining and manufacturing. _And now, prospective investment is $29,000 million. This development promises to be as important to Australia and individual Australians as anything in the last 35 years.</p>

<p>Already, new aluminium smelters and mines are being established in Australia along with the associated new towns, railways, roads and port facilities. The benefits of this will be felt nation-wide. We are not just talking about development for development’s sake – we are talking about development because of what it means to people. And it means jobs, prosperity and security for Australian working men and women.</p>

<p>To achieve all this we have had to trim our sails once or twice, for the world is a harsher place that anyone expected five years ago. But responsible management means placing Australia first, not once or twice, but always. Placing Australia first is the responsibility of management, Labor and trade unions just as much as it is of Government. Responsibility to Australia means achieving greater rank-and-file influence within unions; and giving rank-and-file trade unionists, confronted with the demand to join a strike, the option of a secret ballot.</p>

<p>But above all, it means rejection of 35-hour weeks; rejection of unrealistic wage claims; and rejection of extremist union leaders. And that rejection is the duty of us all.</p>

<p>Let me give you another measure of what is happening in Australia. The increase in electricity generation through the 1980s will be almost equal to that which occurred over the last 30 years. We are going to do in ten years what previous generations took 30 years to accomplish. Modern new industries are coming on-stream with modern plant and equipment involving the most advanced technology. These new developments will give Australia in the 1980s a much stronger international base. New markets are opening up for Australian industries.</p>

<p>None of this has happened by accident. We have introduced firm anti-inflationary policies, policies which encourage and support new Australian initiatives, policies which reflect a responsible and reasonable attitude to overseas investment, and policies which protect the Australian environment. What is happening is the result of our policies.</p>

<p>And our oil parity pricing is an important part of the overall plan. We want Australia to be as energy self-sufficient as possible in future years. We do not want Australia to be a beggar for fuel on the international market. We want to attract investment in alternatives to oil – and we are succeeding.</p>

<p>The giant Rundle Shale oil project in Queensland is likely to be the largest ever undertaken in Australia, and one of the largest in the world. This would not have occurred without parity pricing. We are not just concerned for next year, or the year after. We are building Australia
for the next decade and beyond; to do otherwise would be a betrayal of you and your children. Against the dangers and the difficulties of the current war in Iran and Iraq, does anyone dare tell us that we should alter our policies?</p>

<p>It is fair enough to ask where the oil revenues are going. Every cent is being returned to Australians. For example, this year more than $600 million in tax cuts, more than $500 million on defence, and over $460 million to further reduce the Budget deficit. The growth and confidence in Australian industry is broad-based – industries generally are looking to the future, encourage by incentive for investment, for innovation, for research and for export. These policies will continue.</p>

<p>The tax laws will be altered again to make it easier for small business to build up their reserves.</p>

<h2>Tourism</h2>

<p>We will provide additional incentives for the tourist industry; amongst these, many of our airports are being remodelled and rebuilt. We have built on our programmes for Tasmania; and with New Zealand approval, the Hobart to Christchurch air link will soon begin.And we have decided to proceed with the Alice Springs-Darwin railway.</p>

<h2>Farmers</h2>

<p>Five years ago, it was an unhappy business travelling around the Australian countryside. Many farmers were bankrupt; prices had collapsed. Farmers did not know whether to encourage their sons to stay on the land, or to desert their farms. Now, all that has changed. Our rural industries are doing much better. Our fight against inflation; our policies in support of rural industries; our effective trade offensive overseas; these have played a major role in rural recovery. We understand rural industries. We assist them through troubled years and variable prices. And new initiatives will betaken in the coming Parliament.</p>

<h2>Drought</h2>

<p>I know that, as I speak tonight, there is severe drought in many parts of Australia. We will continue to co-operate with the States to see if there is more we can do to assist.</p>

<h2>Labor taxes</h2>

<p>Would anyone exchange our programmes of assistance for the threat of Labor's death duties? Would anyone exchange our current industrial and rural strength for the certainty of Labor's wealth tax? Would anyone trade their present position for the policies of the Whitlam years and the introduction of a capital gains tax?</p>

<h2>Employment</h2>

<p>As a result of rural recovery, last year, for the first time in 30 years, farm employment grew. Indeed, in the 12 months to August this year, total employment in Australia grew by over 200,000. What are the Labor Party doing? They are promising to provide half that number of jobs — but they are going to charge you a thousand million dollars to do it. Our dedication to strengthening the economy is the only way to create more jobs. I know it is difficult for some people who leave school. Some move smoothly into a job; others have difficulty. Because of this, we have established a range of manpower and training programmes to improve the skills, the versatility and the mobility of those looking for work. These programmes will benefit this year more than 236,000 Australians. And last year, the number of apprentices in training was an all-time record of 136,000. </p>

<p>We will do more by extending counselling services and introducing a new allowance providing much greater encouragement to the young unemployed to take advantage of new and expanded training opportunities.</p>

<h2>Labor</h2>

<p>I am not going to say much about the Labor Party tonight. Mostly, they speak for themselves.</p>

<p>Their essential policy is a massive programme of additional spending. In only six areas they promise to spend an additional $2,500 million of taxpayers' money. These programmes have been costed by Government Departments, and by the Department of Finance. The figure of $2,500 million is a figure that would have to go into any Labor Budget.</p>

<p>If this amount were to be paid out of taxes, it would represent an average of over $8 a week — more than $400 a year — for every Australian taxpayer.
Are Labor's policies worth that to you? Would you allow any of Labor's three leaders to spend your money in this way? And they have the nerve to suggest that they could lower taxes.</p>

<p>But there are more than 250 other programmes to which the Labor Party is committed and which have not been costed. Well, I say to Bill Hayden and the Labor Party, stand up and be costed. Stand up and tell us that these promises would be funded through higher taxation or by printing money. Stand up and tell us that these measures will fuel inflation, promote unemployment, and kill off economic growth. Labor in the 1980s is merely the Whitlam years recycled.</p>

<p>There is not a word in what Labor say or do that will encourage investment, promote growth, increase productivity, or contain the unions. And they try to kid people that they are raising the standards.</p>

<p>The Fraser-Anthony Government is the only option for the 1980s. It is only Liberal National Country Party Government that can provide sustainable economic growth. Only economic growth enables us to meet our third challenge – the provision of assistance to those in need.</p>

<p>It is our belief that the strength of Australia depends upon the strength of Australian families. That is why we are spending almost $100 million a year on family allowances. That is why we have increased the tax rebate for single-income families.</p>

<p>Our programme of family support will continue: we will establish crisis
accommodation for families in distress; we will initiate a new building programme for homeless persons to help, in particular, homeless youth. And, with the States and voluntary organisations, we will establish a national children’s foundation to tackle the problems of child abuse.</p>

<h2>Fourth challenge: excellence</h2>

<p>An important and often ignored challenge facing us all is the pursuit of excellence.</p>

<p>For a continuing feature of our national development is the rich, artistic and cultural talent which complements our national character. The world of film, science, literature, theatre, opera, dance and sport has produced great Australians.</p>

<p>Australia's record at home and abroad is a catalogue of excellence. That excellence will be fostered.</p>

<p>We have provided greatly increased funds for medical research and, with the Government of Victoria, we will rebuild the Walter and Eliza Hall Institute. the courage to speak up for Australia.</p>

<p>We have increased funds for marine research in Townsville.</p>

<p>We will fully fund the rebuilding, in Sydney, of the National Institute of Dramatic Art and the Australian Film and Television School.</p>

<p>Australian film-makers and actors are winning international acclaim. We will provide special and additional incentives to induce further investment in the film industry. And we will make funds available for the support of Research Centres of Excellence in Australia's universities.</p>

<p>We have established a National Sports Institute in Canberra. And we will develop international standard sports facilities in the States and the Territories.</p>

<p>The Government will continue to support Australians of ability; to allow them, with their imagination and their capacities, to advance Australia.</p>

<h2>Final challenge: national security</h2>

<p>But finally, over-riding all these considerations, is the challenge to safeguard our national security. We must lead Australia safely through a world of increasing tension and difficulty; an increasingly dangerous world, a world of Afghanistan, Kampuchea, Iran and Iraq.</p>

<p>That is why: </p>

<ul>
<li> we must contribute to the strength of the western alliance. </li>
<li> we must co-operate and consult within our region.</li>
<li> we must seize the opportunities provided by membership of the Commonwealth, and </li>
<li> we must strengthen our links with other middle-sized powers, all of whom have an important role to play.</li>
</ul>

<p>That is why we are expanding our defence forces. That is why we are building up our reserves.</p>

<p>But the defence of Australia is more than men and destroyers; patrol boats and tactical fighters. The defence of Australia is the courage to speak up for Australia.</p>

<p>We are only 14 million people on a large continent. That is why we need to co-operate with our friends and allies. We are revitalising the 5-power defence treaty with Singapore, Malaysia, New Zealand and Britain.
We have contributed:</p>

<ul>
<li> to the settlement of racial problems in Zimbabwe. </li>
<li> to the establishment now, on a permanent basis of a new regional grouping of the Commonwealth. </li>
<li> to a new sense of concern and participation in the Pacific region. </li>
<li> to a new phase of co-operation with ASEAN.</li>
</ul>

<p>And there is closer co-operation with the United States today than there has been for a long time. With the world as it is, we need that co-operation.</p>

<p>The last five years have seen a progressive strengthening of Australia's place in the world.</p>

<p>Is this the time to be lukewarm to the use of freedom? Is this the time to be uncritical of socialism or communism? This is the time for responsibility, not apology. This is the time for commitment, not compromise.</p>

<h2>Conclusion</h2>

<p>Undeniably, the challenges we face together are great; but our potential as a nation is even greater.</p>

<p>We are entitled to be confident of our capacity to march through the decade ahead at a better pace than almost any other nation. We are entitled to be confident of our capacity to march through the decade
ahead at a better pace than almost any nation. We are entitled to be optimistic about our future.</p>

<p>A future in which Liberal government will seek power and authority, not for its own ends, but for the service of all Australian people, their freedom and their dignity. This is the future I seek for all Australians – let us work together to achieve it. Above all, let us be proud of the country, where it stands in the world.</p>

<p>We owe this much to the Australian men and women who have given their talents and their dedication, their courage and their hard work, even their lives for almost 200 years to bring us the Australia we now enjoy.
Let us be enthusiastic about the tasks ahead; let us communicate this enthusiasm to one another. Let us unite in full-blooded commitment to a progressive, free and independent Australia.</p>

<h2>Responsible economic management</h2>

<p>Only in a thriving economy — with government spending, taxes and inflation kept down — can private enterprise generate the wealth which alone can create real jobs and lasting security for all Australians and their families.</p>

<p>Since July 1980 the Government has implemented or announced:</p>

<ul>
<li> a reduction in the overall Budget deficit of 23% in 1980/81. </li>
<li> a domestic Budget surplus of about $39m, for 1980/81. </li>
<li> 50% tax indexation from 1 July 1980. </li>
<li> an increase in the dependent spouse rebate to $800 from 1 July 1980. </li>
<li> a rise in the sole parent rebate to $559. </li>
<li> an 11% increase in payments to the States, NT and local government. </li>
<li> an increase in local government tax sharing entitlements of 36% to $302m (2% of personal income tax collections), </li>
<li> an inquiry into zone allowances. </li>
<li> further legislation to tighten up on tax avoidance. </li>
<li> an increase in interest rates payable on IEDs from 5% to 7%.</li>
</ul>

<p>Building on these initiatives, in the Policy Speech the Government has announced: </p>

<ul>
<li> Under our present policy of half tax indexation there will be a further tax cut of around $500 million from 1 July next year.</li>
</ul>

<h3>Industrial relations</h3>

<p>Since July 1980 the Government has implemented or announced: </p>

<ul>
<li> the extension of secret ballot provisions to enable individual employees to apply for a secret ballot to express their views on strike action. </li>
<li> legislation to facilitate the amalgamation of unions where there is 'a community of interest'. </li>
<li> a joint Commonwealth/State review of the arbitration system.</li>
</ul>

<h3>Employment and youth affairs</h3>

<p>Since July 1980 the Government has implemented or announced:</p>

<ul>
<li> a 22% boost to manpower, training and youth support programmes, </li>
<li> increased funds for training programmes to assist 236,000 people. </li>
<li> continued funding of the School-to-Work Transition programme. </li>
<li> a Commonwealth Work Experience Programme for secondary school students, </li>
<li> new initiatives for trade training. </li>
<li> a 34% increase in the Australian Public Service intake of apprentices in 1980/81. </li>
<li> extra support for the Occupational Information Programme. </li>
<li> a campaign for work and training opportunities for disabled people in support of the International Year of the Disabled, </li>
<li> International Youth Exchange Programme with South Pacific countries. </li>
<li> a $500,000 programme of assistance to youth organisations.
Building on these initiatives, in the Policy Speech the Government has announced:</li>
<li> a transition allowance to encourage young people to undertake full-time training; a higher subsidy for young unemployed for training under SYETP; development of special counselling services for young unemployed ($25 million in a full year). </li>
<li> expansion of the Australian Volunteers Abroad Programme.</li>
</ul>

<h2>Harnessing our Resources</h2>

<p>A balanced programme that develops our resources — minerals, energy reserves and farmlands—will not only create the maximum opportunities for Australians now, but will also conserve those resources and our environment for the future.</p>

<h3>National development and energy</h3>

<p>Since July 1980 the Government has implemented or announced:</p>

<ul>
<li> a 50% increase in funding for alternative energy research. </li>
<li> a $52m increase in the petroleum products freight subsidy to assist rural areas. </li>
<li> commitment to funding construction of the Burdekin Dam in Queensland.
Building on these initiatives, in the Policy Speech the Government has announced: </li>
<li> taxation concessions to encourage the storage of liquid fuel (10 million in 1981/82). </li>
<li> the extension of the $80 per tonne LPG subsidy for household use to traditional users in decentralised industries ($8-10 million per year). </li>
<li> that it will encourage the States to give special assistance to local government authorities in remote areas which generate electricity from diesel fuel. </li>
<li> $3 million for the States in 1981/82 for soil conservation purposes. </li>
<li> additional funds through the Commonwealth Extension Services Grants Scheme to improve access to information on fuel saving technology and equipment.</li>
</ul>

<h3>Industry and commerce</h3>

<p>Since July 1980 the Government has implemented or announced:</p>

<ul>
<li> a 27% increase in Government assistance to manufacturing industry, </li>
<li> a 20% loading to existing depreciation rates for plant. </li>
<li> a 55% increase in industrial research and development funding. </li>
<li> increased funds for export assistance. </li>
<li> self-employed superannuation up to $1,200 per annum to be tax deductible. </li>
<li> legislation to protect licensee and lessee petrol retailers. </li>
<li> a PJT Inquiry into petrol product prices. </li>
<li> a commitment to protecting jobs in textiles, clothing and footwear industries and a new programme of assistance including bounties, duties, quotas and tariffs. </li>
<li> a National Tourism Outlook Conference to be held in 1981.
Building on these initiatives, in the Policy Speech the Government has announced: </li>
<li> extension of the private company retention allowance during the life of the next Parliament. </li>
<li> removal of the present specific exclusion from the investment allowance of plant for use in connection with amusement or recreation ($5 million).</li>
</ul>

<h3>Primary industry</h3>

<p>In the Policy Speech the Government has announced:</p>

<ul>
<li> tax concessions for capital costs involved in connecting mains electricity in rural and remote areas ($5 million). </li>
<li> three year funding of the Primary Industry Bank's operations. </li>
<li> tax concessions to compensate for the cost of private electricity generation in country areas (up to $5 million). </li>
<li> special depreciation allowance for new machinery used in agricultural, pastoral and forestry operations — also to apply to the purchase of new vessels in the fishing industry ($7 million). </li>
<li> Government financial support for wool promotion on a three year basis. </li>
<li> full tax deductibility of capital expenditure on soil conservation by a primary producer 
($ 1 million). </li>
<li> maintaining concessions for farmers for full write-off of the cost of providing bores, dams and reticulation facilities. </li>
<li> withdrawals from IEDs can be made up to 31 August.</li>
</ul>

<h3>Transport</h3>

<p>Since July 1980 the Government has implemented or announced:</p>

<ul>
<li> signature of a new Two Airline Agreement encouraging greater competition between TAA/Ansett and allowing regional airlines to operate over sections of domestic trunk routes. </li>
<li> an inquiry into domestic airfares, </li>
<li> a $145 million major airport development programme. </li>
<li> a Hobart/Christchurch airlink by Ansett/TAA (awaiting New Zealand Government approval). </li>
<li> the introduction of international air services from Townsville to Honolulu, Los Angeles and New Zealand. </li>
<li> signature of an agreement with South Australia to enable the Adelaide/Crystal Brook railway 
standardisation project to commence, </li>
<li> an allocation of $3,650 million to the States, the Northern Territory and local government over the next five years for roads. </li>
<li> $30 million for Tasmanian Freight Equalisation in 1980/81.
Building on these initiatives, in the Policy Speech the Government has announced: </li>
<li> a firm commitment of $10 million for the first stage of the construction of the Alice Springs/Darwin railway and the provision of funds to complete the railway within ten years.</li>
</ul>

<h3>Post and telecommunications</h3>

<p>Since July 1980 the Government has implemented or announced:</p>

<ul>
<li> a commitment to cable and subscription TV </li>
<li> increased funds for the ABC in 1980/81 </li>
<li> commencement of multicultural TV services in Sydney and Melbourne. </li>
<li> continuing reductions in a range of telephone call charges. </li>
<li> tendering for the domestic satellite.</li>
</ul>

<h3>Science and environment</h3>

<p>Since July 1980 the Government has implemented or announced: </p>

<ul>
<li> approval for a $52 million rebuilding programme in the Antarctic over 10 years. </li>
<li> the nomination of the Great Barrier Reef for the World Heritage list. </li>
<li> initial allocation for construction of oceanographic vessel. </li>
<li> $16 million for Australian scientific research. </li>
<li> development of a National Conservation Strategy in co-operation with the States and the Northern Territory.</li>
</ul>

<h2>Policies for people</h2>

<p>Helping people to become home owners, improving the standards of our children's education, and concentrating health and welfare services on the effective support of those most in need is the best way to support family life in Australia.</p>

<h3>Education</h3>

<p>Since July 1980 the Government has implemented or announced: </p>

<ul>
<li> a 3.2% increase in real terms in spending on schools in 1981. </li>
<li> a 20% increase in major allowances under the Secondary Allowance and Assistance for Isolated Children Schemes. </li>
<li> $23 million for the Disadvantaged Schools Programme to improve standards. </li>
<li> a 10% increase in Tertiary Education Allowances.</li>
</ul>

<p>Building on these initiatives, in the Policy Speech the Government has announced: </p>

<ul>
<li> increased emphasis on vocational and technical education. </li>
<li> additional capital grants of $25 million over three years (1981-83) for non-government schools in the States and NT for the provision of new places. </li>
<li> compression of the existing six levels of non-government schools to three levels in the life of the next Parliament ($5.8 million over three years). </li>
<li> an increase in the per capita grants to Level 6 non-government schools to 40% of overall government schools standard running costs in the life of the next Parliament ($44.8 million a year by the third year). </li>
<li> an additional $2 million a year for the Schools Commission from 1981 to develop educational programmes for severely handicapped children. </li>
<li> commencement of a $4 million, three year pilot programme, to provide on loan video facilities to isolated students in areas without regular television services, commencing with School of the Air students. </li>
<li> an increase in the basic boarding allowance under the Assistance to Isolated Children Scheme to $780 a year from 1981 ($2.7 million in a full year). </li>
<li> a per capita grant of $30 a pupil a year for two years to non-profit making ethnic part-time schools, provided they have an open entry policy ($3 million). </li>
<li> $1 million for the establishment of Research Centres of Excellence in a number of universities in 1981, and allocation of a further 15 million during the 1982-84 triennium. </li>
<li> additional funds for the Tertiary Education Commission to support the establishment of courses in community languages in universities and/or CAEs.</li>
</ul>

<h3>Housing</h3>

<p>Since July 1980 the Government has implemented or announced:</p>

<ul>
<li> a major forward commitment for welfare housing with the States involving a Commonwealth guarantee of a base funding level of $200 million a year for five years from July 1981. </li>
<li> a significant increase in home value limits under the Home Savings Grants Scheme.
Building on these initiatives, in the Policy Speech the Government has announced: </li>
<li> further improvements to the Home Savings Grants Scheme, involving a full year cost of $25 million and to apply from 1 October 1980, include: 
— a family bonus of $500 for families with one dependent child and $1,000 for families with two or more dependent children. This would increase the maximum grant to $2,500 for families with one child and to $3,000 for families with two or more children. 
— an increase in the value of homes on which the maximum grant is obtainable to $60,000 reducing to nil grant at a value of $70,000. 
— widening of the forms of savings acceptable for the grant.</li>
<li> full tax deductibility of home insulation costs for a person's first home where that home was purchased or where construction commenced after 1 October 1980 ($5 million in a full year).</li>
</ul>

<h3>Health</h3>

<p>Since July 1980 the Government has implemented or announced:</p>

<ul>
<li> a 30% rise in funds for Medical Research. </li>
<li> an additional $75m for the Hospital Benefits Reinsurance Fund. </li>
<li> an increase in the Domiciliary Nursing Care Benefit from $2 to $3 a day. </li>
<li> a new programme of 'aids for daily living' for the disabled. </li>
<li> improvements to the Isolated Patients Travel and Accommodation Assistance Scheme. 
Building on these initiatives, in the Policy Speech the Government has announced:</li>
<li> that it will join with the Victorian Government in the construction of a new building for the Walter and Eliza Hall Institute (Commonwealth share: $ 11.25 million). </li>
<li> an additional $500,000 for continuation of the national development of the 'help yourself' health promotion campaign. </li>
<li> an additional $200,000 support for alcohol and drug abuse rehabilitation. </li>
<li> in line with a previous commitment, benefits will be increased from the first pension pay day in November to cover the cost of fees for 70% of patients in non-Government nursing homes.</li>
</ul>

<h3>Welfare</h3>

<p>Since July 1980 the Government has implemented or announced:</p>

<ul>
<li> an increase in spending to $9.9 billion in 1980/81. </li>
<li> $52.5 million in 1980/81 as part of a three year $225 million programme for aged persons accommodation. </li>
<li> $4 million in 1980/81 as part of a three year $12 million programme for senior citizens centres. </li>
<li> commitment of $155 million over three years for handicapped persons facilities commencing 1 July 1980. </li>
<li> an increase in pensions in November 1980 of $3.05 ($5.10 married). </li>
<li> a substantial increase in income limits for unemployment and sickness benefits. </li>
<li> from November 1980 a $2 a week increase in unemployment benefits for those 18 and over without dependents.</li>
<li> from November 1980 extension of the supporting parents benefit to cover the first six months of sole parenthood. </li>
<li> increased allowances for children of pensioners and beneficiaries. </li>
<li> increased allowances for handicapped children to assist an estimated 27,000 children by June 1981. </li>
<li> support for the International Year of Disabled Persons 1981. </li>
<li> rights of appeal for pensioners and beneficiaries to the Administrative Appeals Tribunal.</li>
</ul>

<p>Building on these initiatives, in the Policy Speech the Government has announced:</p>

<ul>
<li> $10 million for a three year homeless persons assistance programme, with special priority for homeless young people. </li>
<li> an increase in the personal care subsidy for residents in hostels for the aged and disabled from $15 per week to $20 per week ($5.8 million per year). </li>
<li> expansion of the Family Support Services Scheme ($10 million over three years). </li>
<li> Crisis accommodation for families in distress (in consultation with the States). </li>
<li> establishment of a National Children's Foundation (in consultation with the States and voluntary organisations).</li>
</ul>

<h3>Veterans' affairs</h3>

<p>Since July 1980 the Government has implemented or announced:</p>

<ul>
<li> a rise in repatriation and other benefits from November 1980. </li>
<li> consideration of only half the disability pension in determining eligibility for fringe benefits. </li>
<li> an increase in the maximum loan for Defence Service Homes to $25,000 and a reduced waiting period of 10 months. </li>
<li> establishment of an advisory committee on the Commonwealth Institute of Health study into the possible effects on veterans and their children of herbicides and defoliants including 
Agent Orange.</li>
</ul>

<h2>Community development</h2>

<p>Safeguarding individual rights, promoting equality of opportunity and encouraging the pursuit of excellence in the arts are essential elements for a strong and vital community.</p>

<h3>Attorney-General</h3>

<p>Since July 1980 the Government has implemented or announced:</p>

<ul>
<li> $32 million for legal aid (in 1980/81). </li>
<li> ratification of the International Covenant on Civil and Political Rights. </li>
<li> establishment of the Human Rights Bureau. </li>
<li> implementation of legislation to reform procedures for judicial review of administrative action. </li>
<li> the creation of an Australian Bureau of Criminal Intelligence. </li>
<li> special judicial inquiry into drug related organised crime. </li>
<li> the opening of the Institute of Family Studies.</li>
</ul>

<p>Building on these initiatives, in the Policy Speech the Government has announced: </p>

<ul>
<li> reintroduction of legislation on both the Human Rights Commission and Freedom of Information. </li>
<li> introduction of legislation on Complaints against the Police.</li>
</ul>

<h3>Aboriginal affairs</h3>

<p>Since July 1980 the Government has implemented or announced:</p>

<ul>
<li> a 19% increase in direct spending by the Department of Aboriginal Affairs. </li>
<li> the establishment of the Aboriginal Development Commission from 1 July 1980 with funds of $23.8m in 1980/81. </li>
<li> $59.9 million for Aboriginal housing and health. 
Building on these initiatives, in the Policy Speech the Government has announced: </li>
<li> responsibility for Aboriginal housing to be transferred from the Department of Aboriginal Affairs to the Aboriginal Development Commission. </li>
<li> $50 million for environmental health improvement over five years.</li>
</ul>

<h3>Immigration and ethnic affairs</h3>

<p>Since July 1980 the Government has implemented or announced:</p>

<ul>
<li> $28 million for adult migrant and refugee education programme. </li>
<li> commencement of multicultural TV services in Sydney and Melbourne. </li>
<li> further expansion of the telephone interpreter service. </li>
<li> the introduction of a system of nomination of overseas relatives and friends of Australian residents.
Building on these initiatives, in the Policy Speech the Government has announced:</li>
<li> upgrading of adult migrant education. </li>
<li> further expansion of the telephone interpreter service. </li>
<li> a public awareness programme to encourage migrants to obtain citizenship. </li>
<li> the expansion of the Bilingual Information Officer system. </li>
<li> a review of NUMAS. </li>
<li> an extension of the refugee programme.</li>
</ul>

<h3>Home affairs</h3>

<p>Since July 1980 the Government has implemented or announced:</p>

<ul>
<li> increased funding for culture and the arts.</li>
<li> $7.1m for National Gallery acquisitions. </li>
<li> a 45% rise in funds for the Sports Development Programme. </li>
<li> preparation of a Plan of Action on combatting discrimination following the UN Mid Decade for Women Conference in Copenhagen.</li>
</ul>

<p>Building on these initiatives, in the Policy Speech the Government has announced:</p>

<ul>
<li> tax concessions to encourage investment in the production of Australian films ($2 million). </li>
<li> establishment of permanent homes for both the Film and TV School ($9 million over five years) and the National Institute of Dramatic Art ($3 million). </li>
<li> further development of the National Library. </li>
<li> $25 million, on a dollar for dollar basis, with the States and Territories, over three years, for the development of international standard sports facilities. </li>
<li> support for the Australian National Games and the National Athlete Award Scheme ($350,000). </li>
<li> special assistance for the development of sport and recreation for the disabled.</li>
</ul>

<h2>A strong and secure Australia</h2>

<p>Unless we secure and defend our freedom today, there will be no free tomorrow. </p>

<h3>Foreign affairs and defence</h3>

<p>Since July 1980 the Government has implemented or announced:</p>

<ul>
<li> $547m for foreign aid. </li>
<li> a 7% real growth in defence spending this year and in following years as part of the five year $17.6 billion programme. </li>
<li> a record $2,000 million peacetime naval construction programme. </li>
<li> a replacement for HMAS Melbourne. </li>
<li> commitment to build two new FFG-type destroyers at Williamstown, </li>
<li> funds for accelerated increases in defence manpower in regular and reserve forces. </li>
<li> payment of certain assurance premiums for reservists. </li>
<li> Darwin to be long term base for a Tactical Fighter Force Squadron. </li>
<li> tenders for 940 trucks for the Army. </li>
<li> potential of $800 million of defence work for Australian industry.</li>
</ul>

<p>Liberal policies are designed to enable all Australians to live free and independent lives in a secure nation. They are policies to promote the enterprise and initiative which will enable people to secure their own future through the rewards of their own efforts.</p>

<p>They are also policies of compassion and concern for those in need.</p>

<p>Lead on, Liberal.</p>

<p>Note: Costings
The programme initiatives announced in the Policy Speech will cost approximately $185 million in a full year. The taxation measures announced in the Policy Speech involve a foregoing of revenue of approximately $40 million in a full year (not including continuation of our present policy of half tax indexation).</p>

<p><em>1980 Policy speech supplementary statements</em></p>

<h2>Responsible economic management</h2>

<p>The fight against inflation will go on. The central objective of the Government's economic policy is to reduce inflation and thereby promote real economic growth and employment. Our policies will continue to be directed to:</p>

<ul>
<li> maintaining the environment for economic growth and increased employment. </li>
<li> underpinning the development of our vast mineral and energy resources. </li>
<li> encouraging our rural and manufacturing industries to grow and prosper. 
A strong private sector is essential for economic success. It should be encouraged, not fettered, by government.
This is the only way to: </li>
<li> raise our living standards. </li>
<li> create new jobs. </li>
<li> provide the capacity to help the disadvantaged.</li>
</ul>

<h2>Inflation</h2>

<p>The Government's policy has already brought Australia's inflation rate down from a record 17.6% under the Labor Government to 10.7%. This is 2-3 percentage points below the industrial world's average. This achievement is the result of five years of consistent economic policies designed to counter inflation.</p>

<p>The Government's own house is in order. </p>

<p>While maintaining a strong commitment to revenue sharing with the States and local government, overall Federal spending is on a very tight rein. Since 1976 spending has increased in real terms on average by only slightly above 1% a year — by far the lowest rate of increase for a long time. The Government has wiped out the domestic Budget deficit and, for this financial year, estimated a domestic surplus of some $39 million — the first surplus in seven years. </p>

<p>This has reduced the pressure on interest rates and lessened the impact on Australia of increases in those rates overseas. The individual buying a home, the investor creating jobs, the producer and the consumer, all benefit. This reflects the stability and consistency in the 
Government's economic management. The results are impressive:</p>

<ul>
<li> the highest employment increase for 10 years — in the year to July 1980. </li>
<li> a considerable improvement in Australia's competitive position. </li>
<li> the value of exports up by one third in 1979/80. </li>
<li> foreign investment at record levels. </li>
<li> the best prospects for business in years. </li>
<li> an encouraging lift in expenditure on personal consumption. </li>
<li> huge new investments in industry and resource development.</li>
</ul>

<p>We are now going in the right direction but we must try to reduce inflation further to create more jobs and protect people on fixed incomes. To a large extent success will depend on moderation in wage demands, a reduction in industrial disputes and continuing tight control on government spending at all levels.</p>

<h2>Taxation</h2>

<p>The Government will maintain its declared taxation objectives: </p>

<ul>
<li> to keep taxes at the lowest level possible compatible with responsible economic management and community needs. </li>
<li> to distribute the tax burden as fairly as possible, with particular concern for low income families. </li>
<li> to provide incentives for initiative and enterprise.</li>
</ul>

<h3>Personal</h3>

<p>Taxation scales have been reduced and simplified during our term of office, We have introduced new concessions and incentives. We are clamping down on tax avoidance. </p>

<p>Today most individual taxpayers pay tax at the standard rate of 32c in the dollar. </p>

<p>The first $4,041 is tax free — $6,542 for a man with a dependent wife. Tax indexation at 50% and the increase in a wife's allowance from 1 July this year means that a wage earner on standard rate with dependent wife now pays $4.76 a week less tax.</p>

<p>Under our present policy of half tax indexation there will be a further tax cut of around $500 million from 1 July next year.</p>

<p>The top marginal tax rate has been reduced from 65c in the dollar to 60c. This is the lowest top rate since 1942. By reducing the number of steps in the tax rate scale from 7 to 3, taxpayers no longer move into higher tax brackets as quickly as before.</p>

<p>Hard work, overtime and promotion are worthwhile once again. We have restored the rewards for enterprise and achievement. We have also made adjustments in the tax system to strengthen our commitment to the family and those with special needs:</p>

<ul>
<li> we have doubled the dependent wife's allowance to $800. </li>
<li> we have increased the sole parent's rebate by 180% to $559. </li>
<li> we have helped lower income earners by increasing the tax free threshold from $2,579 in 1975/76 to $4,041, </li>
<li> we have introduced a special tax concession for self employed persons and those not covered 
by employer superannuation to assist them in providing for retirement. </li>
<li> we have announced an inquiry into zone allowances for those living in remote areas. </li>
<li> we have abolished all Commonwealth estate and gift duties.</li>
</ul>

<p>The contrast with Labor's period of office is dramatic. In those three years personal tax collections rose by 125% as men and women from all walks of life were dragged into paying higher taxes, If Labor's 1975 tax scales had remained, a taxpayer on average weekly earnings today with a dependent wife and child would be paying an extra $22.55 a week more tax. </p>

<h3>Business</h3>

<p>We believe fair rewards for business are just as important as fair rewards for people. Only a healthy, profitable private sector can provide real, lasting, secure jobs. Concessions to our primary and secondary industries have been designed to foster profitability and reinvestment of 
profits. We have, amongst other measures:</p>

<ul>
<li> reintroduced the investment allowance. </li>
<li> allowed accelerated depreciation to assist business with technological change. </li>
<li> raised the Private Company Retention Allowance from 50% to 70%, which is a benefit of $60 million in a full year. </li>
<li> introduced income equalisation deposits for primary producers. </li>
<li> abolished previous income limits on the tax averaging scheme for primary producers. </li>
<li> stimulated resource development, oil exploration and energy conservation through special tax concessions.</li>
</ul>

<p>Overall, we have created a fair, balanced tax system. That is why we are taking a hard line on tax avoidance. We are committed to continuing our restraint on public expenditure and ensuring we get value for money so that we can continue to keep taxes down. 
Unlike Labor, we know that governments have no money of their own to spend — only taxpayers' money.</p>

<h2>Industrial relations</h2>

<p>The Government's principal objectives are to: </p>

<ul>
<li> work to improve the industrial relations climate. </li>
<li> protect the rights of individuals and the public interest. </li>
<li> emphasise the responsibility of all parties to meet their obligations. </li>
<li> improve conciliation and arbitration procedures.</li>
</ul>

<p>The Government is concerned that almost four million working days were lost through industrial diputes last year, This is an improvement on the record of over six million working days lost under the Labor Government in 1974. But the figure is still too high — and far too costly for individual employers, employees and their families,and the community as a whole.
There are Constitutional limits on the Government's industrial relations powers. Nevertheless, we have already acted within those powers to protect the public interest.</p>

<p>We have legislated to:</p>

<ul>
<li> establish the National Labour Consultative Council and ensure regular consultation at national level, </li>
<li> provide secret postal ballots for elections in Federal employer and employee organisations. </li>
<li> require industrial organisations to produce audited annual financial accounts to members. </li>
<li> protect genuine conscientious objectors to union membership, </li>
<li> improve the procedures of the Conciliation and Arbitration Commission. </li>
<li> extend grounds for deregistration of organisations acting to damage the interests of the community. </li>
<li> strengthen the Commission's powers to deal with demarcation disputes. </li>
<li> establish the Industrial Relations Bureau to secure observance of the <em>Conciliation and Arbitration Act</em>, Regulations and Awards.</li>
</ul>

<p>The task is a continuing one. For the future, the Government proposes to:</p>

<ul>
<li> extend the secret ballot provisions to enable individual employees to apply for a secret ballot to express their views on strike action. </li>
<li> legislate to facilitate the amalgamation of unions where there is a 'community of interest'. </li>
<li> in consultation with industry, initiate a major campaign of advice and assistance to all levels of management on the conduct and practice of industrial relations.
The Government remains firmly committed to the principle of conciliation and arbitration.</li>
</ul>

<h2>Employment</h2>

<p>We have made substantial progress in creating more jobs. 205,200 more people joined the work force in the year to August 1980. Unemployment is still high, but Australia is making better progress than many other developed countries. Through the Commonwealth Employment Service 
alone half a million jobs were filled last year. Those placed included 9,000 disabled people.</p>

<p>Three out of four jobs in Australia are in the private sector. That is why the Government is strongly committed to encouraging its growth. Over the next few years resource and manufacturing development projects will create at least 60,000 new jobs directly and thousands more indirectly throughout industry and commerce. </p>

<p>In our five years in Government more than 570,000 Australians have received specific help through our manpower and training programmes. We have given special emphasis in these programmes to job and apprenticeship training for young people. All our programmes have been reviewed to meet the challenge of technological change and the special needs of the nation's new development projects. We will spend $139 million on manpower, training programmes and youth support to assist another 236,000 Australians this year.</p>

<p>New features of job programmes will include reform of the trade training system to increase the supply of tradesmen trained in Australia. This will include shortened indentures for those with appropriate qualifications and experience and renewal of the $1,000 bonus scheme for, apprentices in short supply. Australia is now training an all time high number of apprentices and a record level of first year apprentices. To complement this scheme and the School-to-Work Transition Policy, the Government will also provide further assistance to young people who find difficulty in obtaining regular work. This will provide for: </p>

<ul>
<li> a transition allowance (unemployment benefit plus $6) for young people unemployed four months or more who undertake a transition course, and a similar allowance for those unemployed for eight months or more who take up any full time training course in Technical and Further Education (TAFE) institutions likely to lead to employment.</li>
<li> a higher subsidy (up to $80 a week) for the training under the Special Youth Employment Training Programme (SYETP) of those unemployed 18 to 24 year olds who have been out of work for eight out of twelve months.</li>
<li> automatic eligibility to SYETP for those who successfully complete a transition course and need further on-the-job training.</li>
<li> development of special counselling services for young unemployed registered with the Commonwealth Employment Service for eight months or more.</li>
</ul>

<p>This new programme is a further expression of the Government's commitment to assisting young people.</p>

<h2>Harnessing our Resources</h2>

<h2>Resources</h2>

<p>The Government is firmly committed to the development of Australia's abundant natural  resources — one of the great tasks for the 80s — for the benefit of the Australian people. Its objective is to ensure that Australia takes full advantage of its unique combination of natural resources, competitively priced energy, improving cost competitiveness and proximity to major growth markets.</p>

<p>The Government has already acted — and will continue to act — to: </p>

<ul>
<li> stimulate increased exploration and development. </li>
<li> encourage more processing of raw materials in Australia. </li>
<li> attract overseas investment, with due regard for Australian participation in resource projects and the assertion of our national interests.</li>
<li> assist development through support for essential infrastructure.</li>
</ul>

<p>This has led to an estimated $29 billion investment in major mining and manufacturing projects, either committed or under final study. Three-quarters of this expenditure should be on goods and services bought in Australia. Around 60,000 jobs will be created directly and thousands more will be created indirectly in supply and service industries. In support of this development the Government has already approved a total investment of $4.7 billion in infrastructure programmes, e.g. railway electrification; electricity generation; and coal export facilities.</p>

<h2>Energy</h2>

<p>Our aim is to ensure adequate energy supplies for Australia for the long term future and to help energy hungry countries whose living standards are threatened. </p>

<p>Our national energy policies are based on four goals:</p>

<ul>
<li> to conserve petroleum fuels to the maximum. </li>
<li> to convert from oil to other energy sources (e.g. gas, electricity, coal). </li>
<li> to explore vigorously for oil and gas. </li>
<li> to develop the production of synthetic fuels (e.g. oil from coal and shale, ethanol from biomass, methanol and fuels from renewable sources).
The world is consuming oil at twice the rate it is finding it and the price of oil must reflect its scarcity value. Most of the world is energy-hungry, with few or no local substitutes for oil. Australia is energy-rich in coal and uranium and has significant resources of natural gas. Therefore we must accept and develop our responsibility as a major international supplier of energy. We can, and must, be a major energy exporter, consistent with our own domestic needs.</li>
</ul>

<h3>Oil</h3>

<p>Australia's local oil reserves are diminishing rapidly. Without further major oil discoveries our current 67% self-sufficiency will fall to 50% in 1985, 40 % in 1990 and to as low as 10% by the turn of the century.
The key to achieving our goals is the import parity pricing of oil (i.e. reflecting its world scarcity value).</p>

<p>The high cost synthetic fuel industry depends for its competitive survival upon the maintenance of import parity pricing. It cannot compete if oil prices are held down artificially. Yet, without synthetics Australia would be energy hungry and perilously dependent on the uncertainty of high cost oil imports. The Rundle shale oil development and other large synthetic enterprises like it are vital to ensure energy for the years ahead.</p>

<h3>Gas</h3>

<p>The Government will support the development of LPG as a premium fuel with top priority for automotive use. A clear price differential between LPG and petrol will be maintained. The $80 a tonne subsidy paid to domestic consumers will be extended to traditional users of LPG in decentralised industries. Where practical natural gas pipelines will be extended in country areas.</p>

<h3>Electricity</h3>

<p>We will continue to co-operate with the States in infrastructure financing for the increased development of electricity generation capacity to meet heavier demands. Growth in power generation in this decade will be greater than in any two previous decades. The concept of an electric power grid for south-eastern Australia is now under intensive study.</p>

<h3>Uranium</h3>

<p>The Government recognises that many countries will be compelled to develop nuclear power generation in order to meet their energy needs. Australia will supply uranium for peaceful purposes under the strictest safeguards, including the monitoring of materials and the disposal of radioactive wastes.</p>

<h3>Research and development</h3>

<p>The Government will continue to expand energy research and development through existing agencies particularly in the field of renewable energy sources.</p>

<h3>Water, soil and decentralisation</h3>

<p>The Government will also: </p>

<ul>
<li> expand the Water Resources programme in partnership with the States. </li>
<li> allocate $3 million to the States in 1981/82 for soil conservation purposes. </li>
<li> continue to aid regional development programmes with the advice of the Decentralisation Advisory Board.</li>
</ul>

<h2>Manufacturing industry</h2>

<p>A vigorous and profitable manufacturing industry is fundamental to real economic growth and new jobs. The Government is committed to the development of efficient, outward-looking Australian industries.
Tariff reviews, sensitively approached, have a role to play in facilitating desirable changes in industry structure and in encouraging greater specialisation. In the longer term, the Government considers that Australia will be best served by an industry structure placing less reliance on protective measures than at present. However, movement toward this goal must necessarily be gradual and appropriately timed. Where reductions are appropriate we will give industry advance warning and time to adapt to change.</p>

<p>The record of industry in the past year reflects its own enterprise and the Government's success in fighting inflation: </p>

<ul>
<li> internationally, the competitiveness of Australian industry is at its highest level for many years. </li>
<li> employment in manufacturing rose by 41,000. </li>
<li> factory production expanded by 7% in real terms. </li>
<li> manufacturing investment increased significantly. </li>
<li> the volume of exports reached a record level.</li>
</ul>

<h3>Incentives</h3>

<p>The Government has provided significant assistance and incentives for the private sector. It has: </p>

<ul>
<li> greatly increased direct financial assistance to manufacturing industry over the past five years to a record $416 million in 1980/81.</li>
<li> provided $540 million over the five years to June 1981 for modernisation assistance through the reintroduction of the investment allowance. </li>
<li> increased depreciation rates on plant and equipment by 20% in the last Budget. </li>
<li> lifted industrial research and development grants by 180% over five years to $54 million. </li>
<li> increased export development incentives by 225% over five years to $260 million. </li>
<li> ensured Australian firms can participate in the current upgrading of Australia's defence force with business worth in excess of $800 million this year.</li>
</ul>

<p>The Government will continue to take positive action to encourage the development of an outward-looking, specialised and innovative manufacturing sector. The Government will continue its strong support for export incentives beyond 1982. Industrial research and development grants and export incentives will continue to be essential elements of our industrial policy. We will avoid overregulation of business, which stultifies initiative and enterprise and imposes costs that must ultimately be borne by the public.</p>

<h2>Small business</h2>

<p>There are half a million small businesses in Australia, about 90% of Australian businesses, providing 40% of total private employment. They are a central feature of the Australian free enterprise system. The most important assistance the Government has given to small business has been to lessen the burden of inflation. We have also helped small business to help itself.</p>

<p>We have eased its taxation burden by $60 million a year by increasing the Division 7 retention allowance from 50% to 70%. During the life of the next Parliament this allowance will be extended further.</p>

<p>We have also:</p>

<ul>
<li> given a special tax concession to self employed persons and employees not covered by employer superannuation arrangements to encourage them to make a proper provision for their retirement. </li>
<li> assisted with finance by relaxing constraints on the Commonwealth Development Bank's powers to lend to all small farms. </li>
<li> abolished all estate and gift duties.</li>
</ul>

<h2>Tourism</h2>

<p>Tourism is an important Australian industry and has outstanding prospects for further growth. In 1979 tourism earned around $650 million in foreign exchange and between 1973/74 and 1985 it should have created some 60,000 new jobs. The Government's policy is to promote Australia's tourist attractions and encourage a vigorous, competitive industry.</p>
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