POLICY SPEECH by The Rt Hon. J.D. Anthony, C.H.M.P., Deputy Prime Minister, Minister for Trade & Resources, Leader of the National Party of Australia: 21st FEBRUARY 1983.  When there are problems, as there are right now all round the world, what's needed most is firm experienced leadership. There's not much we can do about a world-wide recession, or the worst drought this century. But building on responsible, disciplined economic policies, there are some things we can do to help ourselves.  It's not a time for experiments, for taking risks. It's not time for L-plate government. It's only five years till our Bicentenary. There'll be major improvements to Australia's roads before we celebrate in 1988. We'll have the Alice Springs to Darwin railway built by then. We’ll be building standard-gauge rail links to several ports. The Bicentennial Water Resources Program is another exciting step forward. Labor says this is not the time for these great national projects, but they will mean many thousands of jobs, and we will push ahead with them. Where is Australia going? This is all building for the future. What we ought to do right now is take a good, hard look at where this country's going. How can any Australian, any Australian unionist, take pride in hearing his country described as "unreliable"? When I speak to our customers overseas, they say: "Australia! That's where you have all the strikes. "You're the people who don't keep your word on deliveries. "That's where the factories are shut so often, where the phones go out, the mail stops, the petrol dries up, the planes don't fly, the mines close; where our ships get stuck for months. That's not something to be proud of - it's something we should all be ashamed of. This reputation grew in the years when our strikes were the worst they've ever been. Those were the years of Haste leadership of the unions, Hawke presidency of the Labor Party, and Whitlam Government. Yet there's no limit to what this country can do if we all put our backs into it. It won't be easy, the way things are, but let's show we can build a better Australia, together. Unemployment worse than it need be. Everyone is worried about unemployment. When first elected, we had justifiable optimism and confidence about jobs. We brought inflation down. Investment and growth recovered. Our great resource industries surged forward. Our exporters thrived. Nearly half a million new jobs were created. And then things changed. The world got caught up in a strangling bout of high interest rates and inflation. Growth slowed down. Trade stagnated. The demand for our products fell away. Prices collapsed. The whole world plunged into recession - the worst since the Great Depression of, 50 years ago. Today around the world, 35 million people are put out of work. And we’ve found it's very hard to swim against the tide of that world-wide recession. Things have been made worse than they need be by wages and costs rising too fast. If we go on like that, there's just no way we can get people back to work, and give our young people jobs. We can start putting people back to work, but there won't be any miracles. Promises of creating half a million jobs won't do it. Summit conferences won't do it - if we don’t know what the problems are now we never will. We can turn the tide, not by spending vast amounts of your money, and setting off a new wave of inflation, but by reducing our clamour for higher wages and shorter hours, so that our businesses can compete. We can do it by stopping the strikes, the bans, the disruptions. By getting our coal and wool and sheep and machinery to our customers on time. That's how you keep the country humming, and people working, and hold out some hope to young Australians. And no one can do those things for-us but ourselves.  We don't want-union government.  Certainly leadership is important. We want leaders who can give us the confidence to get on with the job. To put jobs ahead of pay rises. To give young Australians a chance for the future. And what kind of government can give that leadership? Not a union government! Too often, the union movement has frustrated and infuriated Australians. Now Mr Hawke, who has moved from the leadership of the unions to the Labor Party says that he alone can lead us out of the darkness of division into the light of reconciliation. Don't get me wrong. We're not against unions. But I think the majority of unionists and their wives and families are just as fed up as anybody over the way some of their mates behave.  Changes in the law on unions.  That's why we're going to give them a proper secret ballot when they elect their officials. And there will be secret ballots on strikes in essential services and vital industries. We will be taking new steps to protect the community against strikes. We will seek power through a referendum for the Commonwealth to legislate to give the Conciliation and Arbitration Commission power to make sure awards and agreements are not broken, and to enable the Commission, and the Government where necessary, to prevent the community being denied essential services by the abuse of union power. The community, and union members themselves, are entitled to this protection. And while we press ahead with great national projects that create jobs, we'll continue the things we've already put into place - the tax cuts, the higher family allowances, the housing interest rebate, the increased pensions, the higher student allowances and all the other help we're giving Australian families. Interest rates are a real worry, even though they're coming down. If there were some simple way of reducing them without causing other problems, it stands to reason the Government would have done it. What we have done is give you a substantial tax rebate to reduce the interest load on home and drought loans.  Help for families will continue.  We're not offering tax cuts - we've made them. The tax reductions in the last Budget, and other benefits, are saving the average family about 17 dollars per week. In May there'll be a lift in the unemployment benefit for single people over 18. A quarter of a million people will be helped by our employment training programs. And we will be setting up a program of youth projects in conservation and reafforestation. There'll be another new program with the armed services offering places to 5,000 young people each year for two years, with trade training for as many of them as possible. I'm sure many young people and their parents will welcome this.  New tax deal for small business.  Small business is the cornerstone of so much of Australian endeavour. The foundation of employment. It has been hurt by the drought and by high wage and other costs. Carry-on finance is available in several States, although the NSW Government has so far refused it. As a further step, small business will pay a lower rate of company tax - five cents under the standard rate.... a 10 percent advantage. A special small business division of the Development Bank, with extra funds, will be-set up. Aid there is to be a new Advanced Technology Corporation to help small and medium firms develop innovative products and services. Our export development effort will be stepped up.  Drought toll unites community.  All Australians are united in their concern about the drought. All Australians, whether they realize it or not, are affected by the drought. This year, well over $350 million dollars is being provided to help farmers survive. No one begrudges that. We all hope the drought will break soon. To help farmers cope with their debts after it does, we'll continue the interest rate subsidy for a year beyond the breaking of the drought. We'll use the Rural Adjustment Scheme to help too, and a very close watch will be kept on finance for planting crops and for restocking. But drought isn't just dying crops and pastures, and starving animals. It's soil being blown away. It's the wind, and sometimes water, carrying that productive layer of earth away from our farms and into the sea. Grants to the States and tax concessions have helped, but we'll now begin a national drive against soil erosion. Five million dollars to start, building up to a total of 50 million dollars by 1988, protecting our greatest asset. And in the Bicentennial Water Resources Program, a long-awaited aspiration of my party will come closer. We'll be looking very seriously at the possibility of turning the surplus waters of some of our coastal rivers inland - something that could open up exciting prospects for large areas of Australia.  Problems must be faced.  If we're really going to put all our energies into the job that lies ahead of us, we need to face our problems realistically. A few weeks ago, it looked as if that was going to happen. All governments in Australia agreed that we needed to stop wages rising for a while. The wages pause offered us breathing space, to begin to recover. To stop, as much as possible, the loss of jobs. To begin opening up new jobs. To let us help other Australians with the money saved. Here was something we could do. Something we could control ourselves. But this great opportunity for consensus, for bringing Australians together, was met with combined Labor Party and union determination to smash the wage pause, even with strikes. And that combined attack reminds us, by the way, that Labor's leader is, after all, only one part of a package. You don't get just the leader. You get his party too. You get his party's inflationary policies. You get the powerful, militant unions. Anyone who doubts that only has to look at the long-awaited agreement on economic policy between Labor and the ACTU - the so-called prices and incomes policy. Let no-one be fooled. This policy is no mild program for reform. It is no mere tinkering with the economy as we know it. It is chilling, cold-blooded blueprint for the destruction of Australian free enterprise and the radical transformation of the Australian economy and society. This policy, if it were ever put into action, would put in place the essential framework for the creation of a Centrally Planned Economy - a State-controlled economy. 'There are other countries with Governments like this. In them, the unions are the puppets of self-appointed Governments. In Mr Hawke’s vision of Australia, the National Government would be the puppet of the union movement - and that movement, as Labor's platform makes clear, would be outside the control of Parliament and the law, and responsible to no-one but itself. There are many aspects of the agreement between the ALP and the ACTU which I believe deserve the strongest condemnation. The worst is the whole philosophy of the agreement 7 a philosophy which provides for continually increasing wages, while grinding down profits, strangling growth and extending regulation. It is a philosophy which far from boosting jobs, would slash them, and that's not surprising when you remember it comes with the blessing of the ACTU, whose wages and hours demands have already cost us thousand of jobs. But the most important thing about this policy document. and the one I want to make all Australians understand, is its basic thrust towards a centrally controlled and planned national economy. All the elements are there. Under Labor's policies, there would be State control of prices, State control of incomes, State control of finance, State control of investment, and State control of interest rates. Over and above it all would be a national economic planning mechanism, an octopus stretching its tentacles into almost every aspect of economic activity. The emphasis of industry policy, the document itself makes plain, will be "to integrate all sectors both private and public. What an admission! This document makes it plain that a Labor Government would effectively throttle the private sector as we know it today. We would have an "integrated" economy whatever that means. Frankly, this policy document scares me. I believe it will scare all Australians who value their independence. It goes far beyond anything Mr Whitlam even attempted during his three disastrous years as Prime Minister. It's what the radical wings of the ALP and the ACTU have been agitating for over many years. It would hand over control of the Government of this country to a union movement above Parliament. Socialism is an unfashionable word, I know. It's trendy to scoff at those who warn that Labor is a party based on Socialist principles. Many Labor people try to pretend that isn't true. But let's look at the basic facts about the Labor Party. The Party Platform, determined only last year, states, and I quote: “The Australian Labor Party is a democratic socialist party and has the objective of the democratic socialisation of industry, production, distribution and exchange to the extent necessary to eliminate exploitation and other anti-social features of these fields”. The platform also calls for the redistribution of income, wealth, and economic power. It spells out the Labor enthusiasm for intervention in the economy, an enthusiasm echoed in the prices and incomes policy. And it names the instruments Labor is prepared to use to intervene in the economy - instruments which include nationalisation. It is clear from this document, the prices and incomes policy, that Labor's commitment to the principles of Socialism is as strong as ever. It is a commitment which if ever put into action, would wreck the economy of this country. It is a commitment which would tear this country apart socially. And it is this commitment- spelt out in the prices and incomes policy- which sets out once and for all the absolute difference of Labor's vision of our future and the vision of the Liberal-National Party Government. The last thing Australia needs is union government.  Leaders must be strong, experienced, stable.  We can handle our problems. Not easily, or quickly - but we can do it. We can do it if there's leadership that's strong and experienced. Leadership that's respected - not necessarily loved, but respected - for its strength, its experience, its stability. We can do it if Australians accept the need for sound, safe, disciplined economic policies that continue to attack inflation. It's not easy, but it's the only way. When governments spend, you pay. Governments must do things to help. They must plan, construct, build for the future, to provide jobs and opportunities and challenges. The roads program. The water and soil conservation programs. The Territory railway, standard gauge links, mainline upgrading. A big airports program. The wage pause. The armed services job program for our young people and the forest and conservation jobs scheme. The general training programs for Australians, especially the youth of the nation. The help for industry. All these are part of our all-out effort to develop Australia and give Australians jobs.  Australia will be what we make it. But in the end, it all gets back to us as individuals. Australia will be what we make it. I know Australians don't talk much about things like pride in their country, about love of Australia. But they want to be proud. They want to see Australia grow and prosper. They want Australia to lye respected around the world. In many ways our name is respected except, that is, for our strikes. The Government must take the lead, and it is. But the Government alone can never solve all our problems. Australia isn't just the Government. Australia is all of us. Australia will be what we all make it. With leadership built on experience and strength, we can make Australia a better place. That's the kind of leadership Malcolm Fraser and I offer you. We ask for your help, your commitment, your work, to build a better Australia. This is the complete text of the 1984 Australian Labor Party Policy Speech. An edited version will be delivered by the Prime Minister, the Hon R.J. Hawke, at the Opera House at 1 p.m., 13 November 1984.  My fellow Australians,  When from this place in February 1983 I first asked for your support, I sought from you an act of great trust. Our nation was then in deep crisis - the worst economic crisis for more than fifty years; and a searing crisis of the national spirit, after a decade of confrontation and division. Unprecedented circumstances demanded unprecedented responses. Therefore, on behalf of the Australian Labor Party, I asked for your support, your co-operation – and your active participation - in a course of action and a new national approach which had never been tried in Australia in peacetime - the course of national reconciliation, national recovery and rational reconstruction.  The last twenty months have seen the supreme vindication of that trust - not only the trust you placed in us, and the new, untried approach we offered; but much more important, the -trust you expressed in yourselves, as a people, as a nation - that given leadership, we Australians could be brought together, we could work together; we could, together, beat back the crisis, restore hope, restore growth, confidence and a sense of united purpose to this nation. And together, we have done it.  But now, my fellow Australians, on 1 December 1984, you are called upon to make a very different decision, in very different circumstances, for very different purposes:  - not, this time, as it was then, a decision to fight against a deepening economic and social crisis; but now, to consolidate, sustain, and build upon the great gains we have already achieved together.  - not, this time, to end the confrontation and divisiveness of a decade, but to build a new decade of national unity, national purpose and national progress.  - not, this time, to restore positive economic growth from negative; but to ensure that the benefits of our economy - now the world's fastest-growing economy - are fully and fairly shared by all sections of the community.  - and to build, in our time, a nation foremost among the nations of the world, in freedom and fairness for all.  Never in living memory have the people of Australia had a clearer choice to make.  And never have they had a more important choice to make.  The Opposition has destroyed any vestige of credibility by the most negative election campaign any of us can remember. But long before that, their credibility was destroyed by their known record in Government and their known record in Opposition - more especially their recent performance.  And let me make this clear:  We of the Australian Labor Party do not ask you, the people of Australia, to take us on trust. The only trust I seek is the continuance of the trust we have striven to earn in the past twenty months - the trust - the mutual trust that we have tried to build with and between all sections of the community, your trust that we will continue to put Australia first. And let me make it clear, from the opening of this campaign - as I made it clear from the opening of the last campaign - we are not in the business of making grandiose spending proposals of the kind our opponents have been throwing around. We are riot offering a grab-bag of unrelated, unachievable election promises. We are not offering a fistful of dollars. It is imperative that the sound economic management we have given Australia continues. We pledge that it shall continue. We are not going to endanger all that has been achieved, and the enduring advances, the real and lasting benefits for all Australians we can achieve in the years ahead, by a vote-buying spree. There is a new spirit of confidence in Australia. And never has that confidence been more soundly based. Australia stands at a splendid – but critical - point in its history. Splendid, because of all we have achieved together since March 1983. But critical, because the alternative offered - indeed, explicitly threatened - by this Opposition, is a return to the path which produced the disasters of two years ago - the highest number of Australians thrown out of work since the Great Depression; the longest period of high inflation; the highest interest rates; growth in reverse; home ownership placed beyond the reach of an ever-increasing percentage of Australian families; and above all, a return to policies and attitudes which produced unparalleled division in the nation.  I put to you a simple question: will you risk everything we have achieved together, to return to all that? This Opposition asks you to reject the very meaning of all that we have been able to achieve together - not our Government alone, but all the sections of the Australian community who have contributed so much to the recovery by their restraint, by their responsibility, by their initiative, by their co-operation. It is an Opposition of despair - an Opposition which begrudges Australia’s new success and prosperity- an Opposition opposed to the whole spirit of co-operation we Australians have built together. We pledged ourselves to fight unemployment and inflation simultaneously - something which our critics said could not be done and something which our opponents refused to do, failed to do, throughout their seven years of waste and loss. In the last year more new jobs have been created in Australia than in any other year in our history. Against their record of two hundred thousand jobs lost, and a quarter of a million increase in unemployment in a single year, we have created 270000 jobs in the eighteen months since the National Economic Summit began its work of regeneration. We are going to maintain that effort. We will fulfil the pledge we made at the last election, to create half a million new jobs within three years. And we will continue to create jobs more rapidly than the labour force grows, so that unemployment will continue to fall. We have more than halved inflation. Building on our achievement of the lowest inflation for thirteen years, inflation over the next year will be less than five percent. We aim to keep it below five percent. We pledged ourselves to restore growth to the Australian economy. In the last year, Australia has experienced the strongest growth on record - the strongest growth of any of the member countries of the Organisation for Economic Co-operation and Development. In the world's economic stakes, we are winners again. We are going to keep Australia where it is now internationally recognised to be - among the frontrunners of the world' s industrialised economies. We pledged ourselves to end the needless confrontation and disruption in industry. Industrial disputation is at the lowest level for sixteen years. We are going to keep it that way. We pledged ourselves to bring home ownership once again within the reach of ordinary Australian families - to end that sense of despair and frustration that was beginning to engulf thousands upon thousands of young people seeking their own homes. We have increased public housing support by fifty percent. We introduced the First Home Owners Scheme, to bring home ownership within the reach of thousands of young Australians of limited means. The number of new houses being built in Australia has increased by one third. And we are going to keep it that way. In the next twelve months, 145000 new houses will be built in Australia, an increase of forty percent over the level of two years ago. And beyond the next year we will maintain at least this level of housing activity, and ensure that our housing industry never again slumps into the contraction and despair of the year before we were called to office. The overall picture for Australia – in stark contrast to the grim realities of twenty months ago - is this:  - never in the last decade - and more- there been anything like the combination of favourable economic prospects that now exist: consumer confidence at record levels; business-confidence and business investment restored and growing by the month; the housing industry buoyant; manufacturing production rising; industrial disputes dramatically down; interest rates declining; employment up; -inflation-down.  With a record like that, is it any wonder that Paul Keating has been nominated as the world's best Treasurer? This is the base - the strongest for decades - on which we can build, together, an even better and fairer Australia.  The Accord.  The cornerstone of the foundations we have laid is the Prices and Incomes Accord.  After seeing every fitful attempt at recovery in the last decade dissipate in a new round of price and wage increases, the Australian economy is now growing while inflation is failing. The continued success of the Accord is the absolute condition for achieving a sustained recovery without inflation. The Accord provides the framework for business to make major new investments with a new confidence. We pledge ourselves to maintain the Accord, and all the benefits that flow from it. Our opponents are committed to its destruction. They propose to dismantle everything which makes the Accord work.  They propose to end central wage fixing based on wage indexation, and to close down the institutions which give form and substance to the Accord, the Economic Planning Advisory Council, the Advisory Committee on Prices and Incomes, and the Prices Surveillance Authority.  But beyond that, they stand against the whole spirit of the Accord - the spirit of co-operation, and the process of consultation between Government, business and unions, which has enabled Australia, at last, to break out of the cycle of inflation and recession.  But the sabotage of the Accord and its achievements threatened by their proposals reaches even deeper, with policies which could have only one result - the unleashing of another burst of inflation and a new wage explosion. Theirs is a recipe for economic disaster. The central achievement of the past twenty months - restored growth with reduced inflation - would be wrecked, with all that would mean for employment, for interest rates, and for the standard of living for the weaker sections of the community, especially our young and our pensioners, for everything that millions of ordinary Australian can now hope for themselves and their families.  My fellow Australians,  In February 1983 I pledged my Party, my Government, myself, to a program of national reconciliation, national recovery, national reconstruction. Each part of that program interlocks. And it is through the path of reconciliation leading to recovery - by which so much has already been achieved - that we can now, in our next term, continue the task of building upon the strong foundations we have laid towards national reconstruction.  I repeat: we refuse to put at risk all that has been won, by irresponsible electioneering in this campaign. We offer a continuing, coherent program – a firm ordering of priorities to build a prosperous, fair and caring society; a strong and dynamic nation harnessing to the full the talents of our people to meet even more effectively the challenges and opportunities of an increasingly complex world and an increasingly competitive Western Pacific region, in which our destiny has placed us forever; and a nation in which, as we strive to meet those challenges and to reach those goals, all Australians, whatever their background, can truly feel that they are involved, that each has part to play, in the real life and growth of a great nation.  National priorities.  The Australian Labor Party is the Party of Growth, Equity, and Peace. I offer the Australian people the unswerving commitment of our Government to the promotion in Australia - and in the world to the extent that it is within our power to do so - of Growth, Equity and Peace. Towards these great goals, we now set these priorities for our next term:  - The maintenance of strong economic and employment growth with low inflation; and to this end, new initiatives to remove impediments to Australia applying our resources to the most productive uses, and to strengthen industry.  - a genuine reform of the Australian tax system to promote growth and to ensure that the benefits of that growth are fairly shared and bring lasting relief on personal income taxes to the millions of ordinary Australian taxpayers. What we mean by tax reform is that the hard work of the ordinary Australian is not unfairly penalised.  - a concerted effort to attack the causes of poverty and inequality in our midst, to eliminate unemployment and to create a fairer society.  - a drive to raise the levels of education, health and the other community services for all Australians.  - and to continue, with renewed vigour based on your renewed mandate, our unremitting efforts in the cause of peace and nuclear disarmament.  Reconstruction and growth.  The task of building upon the strong foundation we have laid for national reconstruction requires first of all that the conditions which built national recovery continue: co-operative industrial relations, and fiscal and monetary policy designed to support gradual reductions in interest rates and strong economic growth without any resurgence of inflation.  We have established these conditions in the past twenty moths, and undertake to maintain them through the life of the next Parliament, and for as long as the Australian people continue to charge us with responsibility for national reconstruction.  And beyond the maintenance of these favourable general conditions, we will continue to work systematically on long-term structural reforms designed to raise the capacity for sustained growth: in trade; in education; in the effective use of technology; in business deregulation; in manufacturing and rural industry, transport and other key economic sectors and in taxation reform.  The strengthening of Australia's capacity for sustained strong growth requires much greater export orientation of Australian industry. This demands the continuation of our efforts to raise productivity and improve international competitiveness, as well as to pursue an active trade policy.  The destiny of the secure, dynamic, prosperous and fair society which we are building lies in the Asia-Pacific region, and especially the Western Pacific region.  The industrial transformation of Japan, the rapid industrialisation of Korea and most of ASEAN, and now the emergence of a major new participant in the international community of a dynamic China determined rapidly to modernise its economy, provide a great challenge and opportunity for Australia.  Trade Policy.  We are living through history's most dramatic reshaping of the world economy, as the centre of gravity of world economic life shifts to the West Pacific Region to which we belong. In the years ahead, we will continue to build on the constructive and close relations that we have established with the countries of ASEAN, with Japan and China, and with cur Southwest Pacific neighbours. We will continue to build an environment of confidence amongst governments and peoples within which productive interdependence can prosper. Australia must be more than a passive beneficiary of the growing East Asian demand for foodstuffs and raw materials. Our resources and the talents of our people call for a new role: Australians as suppliers of advanced services, specialised technology, and manufactures embodying high skills, as well as the primary products which have been the traditional mainstays of our foreign trade. The Department of Trade and an upgraded Trade Commissioner Service have been reoriented towards a targeted approach in key markets such as China, Japan, North America and the Middle East, including the provision of more effective support for exports of advanced services and manufactured goods. We will continue to defend strenuously Australia’s interests in international forums against unfair and often subsidised competition in world markets, for our prospective exports of processed and manufactured goods as well as for our traditional agricultural exports. The fruits of our continued efforts in trade policy will be harvested in their contribution to growth and reconstruction in Australia over the next three years, and beyond into the twenty-first century.  The New Technology Challenge.  National reconstruction and the enhancement of sustained growth will require heavy investment in education, training and retraining, and a redirection of our education effort to ensure that it prepares our young people better for productive and creative lives in a complex and rapidly changing modern world. This concern for the quality and relevance of education has caused the Government to initiate inquiries into tertiary education through the Commonwealth Tertiary Education Commission, under its chairman, Hugh Hudson, and into secondary and primary education under the Vice-Chancellor of the Australian National University, Professor Peter Karmel. These reports will provide  the Government with a basis for ensuring that the substantially increased resources which we will make available to education at all levels are used in the most effective way in the years ahead. To succeed in building a dynamic, prosperous and secure Australia it is essential that we have available and apply the world's best technology. The strengthening of technical and applied scientific education is essential to this end. Our pure scientific research effort has been at the forefront of the world, and we will continue to maintain the very large Australian Government effort in scientific research through our universities and C. S.I.R.O. But we have to recognise that our application of new technology to many areas of industry has lagged behind. Sustained high growth in Australia will require greater and more systematic application of the best technology to all our industry.  In recognition of this weakness in our national research and development effort, we have promoted a greatly increased flow of funds to enterprises applying new technology through the Management lnvestment Companies.  Research Concession.  To further encourage this effort, we intend to allow 150 percent of genuine expenditure within Australia on research and development to be deducted against income nor taxation purposes. This will mean that the effective cost of research and development to the investor will be only thirty-one percent of increased expenditure . We expect this initiative to expand substantially the research and development effort within Australian business, and assist also in the revitalisation of the established research communities. All research and development expenditure will qualify, unless it is within projects which already receive assistance under R & D Grant Schemes.  Business Deregulation.  The reconstruction of Australia needs to systematic removal of unnecessary institutional and legal impediments to applying national resources to their most productive uses.  In consultation with the Business Council of Australia, the Confederation of Australian Industry, the Australian Council of Trade Unions, the National Farmers Federation, and the Australian Chamber of Commerce, we have begun to review the great volume of laws and regulations affecting business which have accumulated over the past eighty-four years of the Australian Federation. They fall with particular impact on small business. Our reforms in the financial sector illustrate our approach and demonstrate our commitment to the abandonment of unnecessary regulation. Over the term of the next Parliament we will remove legislation and regulation which is damaging to business and employment expansion, and which is not justified as an efficient means of promoting economic and social objectives. National reconstruction requires us to go beyond these general improvements in the economic and business environment to specific approaches to key sectors of our economy.  Manufacturing Industry Policy.  It is an absolute condition of national reconstruction that our manufacturing sector- lacking direction and in decline for a decade before this Labor Government took office - be restored as a source of national growth. We will continue to take action to strengthen manufacturing industry within the framework of consultative processes already created, involving manufacturers, unions and Government. The Government has demonstrated in steel, motor vehicle and other industries that these processes can lead to policies and agreements which raise investment and productivity, and strengthen the industry’s capacity to compete at home and abroad, consistently with the wider community's interest in quality products at more competitive prices. The steel and motor vehicle plans have been characterised by a high degree of consultation and analysis involving government, unions and business; by emphasis on the need for investment, productivity growth and strengthened competitiveness directed at long-term employment security; by gradual change towards more productive industry; and by government assistance in forms which protect the interests of the wider Australian community. In addition to these successful initiatives which have given new hope and life to major sectors of Australian manufacturing industry which for many years had been in great and increasing difficulty, the Labor Government has implemented major institutional reforms of general assistance to the manufacturing sector as a whole. The chief amongst these are the reconstruction of the Industries Assistance Commission and the Australian Industries Development Corporation and the Australian Manufacturing Council. We have honoured our pledge to save the Australian steel industry. Now it has become a source of secure employment and of real strength for the Australian economy. At last manufacturing employment is growing again, contrasted with the massive decline over the previous ten years. But the main task lies ahead. The Government will continue to treat industries on @ basis where, as with motor vehicles and steel, this approach seems likely to lead to adjustment to new conditions and growth. The strategy will require the active promotion of re-investment in modern industry; encouragement to install the best technology to achieve competitive manufacturing units; and promotion of new and improved products from Australian industry, based on research and development which is more strongly oriented to industry. A task early in our second term will be the development of an effective approach to maintaining in Australia a strong and efficient heavy engineering industry.  Defence Industry – Submarines.  Our Government is determined that there shall be the maximum practicable involvement by Australian industry in defence equipment programs. We will ensure that Australian industry shares to the maximum extent in the development, construction and maintenance of the new submarines to replace the Oberon class from the early 1990’s.  Rural Policy.  In the task of national reconstruction it is crucial that our rural sector be recognised for the fundamental contribution it makes to our economy and to our society, and the major contribution it has made to our recovery since March 1983. No Australian resource is more important than our land- our soils, water and vegetation. No sector of Australian industry is more important than our primary industries – still Australia's major source of export income. The needs of the four and a half million people who live and work outside the major cities are at the forefront of the Government’s concerns. We recognise that distance in this vast country can create problems for country people and as we implement our policies during our second term in the field of health, education, transport and communications, the special needs of country people will have a high priority. We have introduced a National Soil Conservation Program to try to halt the massive degradation that threatens more than half our agricultural land. We have introduced fisheries  management programs to bring our fish stocks back from the brink of collapse. Over the next term we will continue to develop these programs. I will give the details of Labor's rural policy at Armidale, New South Wales, on Sunday, 18 November.  Transport.  To provide the fullest support for the national reconstruction effort, and to maximise our export opportunities, we need an efficient national transport system. To this end the Government has increased road construction and road safety programs in Australia by more than fifty percent. We will continue the greatest road-building and maintenance program in Australia's history. Within the next three years, the national highway system will be brought to an all-weather, dust-free and flood-free standard. The Hume Highway will be completed as a four-lane and mostly dual carriageway from Sydney to Melbourne.  The Bruce Highway will be transformed to give the growing cities Of North Queensland the genuine highway standard link they need and deserve. We have initiated the most comprehensive overhaul ever undertaken of Australia's national transport system. We will continue this overhaul and, as a matter of priority, develop a cohesive Australian Land Transport Program, and give consideration to its financing by an indexed share of existing fuel excise, so as to provide continuity to our road building effort, and to include upgrading of our main land rail system as part of an industry restructuring package to be negotiated with rail unions and management.  Tax reform.  A second major challenge for our next terns of office is reform and a complete overhaul of our tax system. That will be of fundamental importance to the task of national reconstruction. The tax cuts which are now being enjoyed are the first dividend of economic recovery and growth being paid to the ordinary taxpayers of Australia. Unlike the fraudulent cuts of 1977- the notorious fistful of dollars which were snatched back immediately after the election- I can guarantee you’ll keep our tax cuts! And unlike any previous tax cuts for more than a decade, their real value to the taxpayers of Australia will not be filched by the theft of double-digit inflation. The tax cuts are the first element in our undertaking to achieve genuine tax reform, and to provide tax relief for the taxpayers, but particularly the middle and lows income earners - of Australia - the ordinary hard-working Australians who pay as they earn. The second element is our continuing attack on the tax avoidance industry which, throughout the years of the previous Government, became Australia’s fastest-growing industry. Our capacity to smash the tax avoidance industry has been hampered by the Opposition which by obstructing legislation in the Senate to close notorious loopholes, has effectively cost the ordinary, honest taxpayers of Australia hundreds of millions of dollars. That is one of the reasons why we ask every Australian voter who supports our Government in its effort to smash the tax avoidance industry completely - as we are now well on the road towards doing- to ensure that our Government in the House of Representatives is supported by a majority in the Senate. We will re-introduce the twice-rejected legislation and, with a Senate majority, we can complete our work of smashing the tax avoidance industry in Australia once and for all. The third element- a thoroughgoing review and reform of the entire tax system- will be central to al our tasks in our second term. Our tax reform will be preceded by widespread community consultations, and will proceed on the basis on nine clear principles and objectives. The Government's nine principles of taxation reform are:  - First, there must be no increase in the overall tax burden, as measured by the share of Commonwealth Government revenue in gross domestic product.  - Second, any reform must continue the process already begun by this Government, and provide further major cuts in personal income tax.  - Third taxation changes must contribute to smashing tax avoidance and evasion which remain as features of the tax system which the Government inherited.  - Fourth, any reform must lead to a simpler system which therefore all Australians can understand more easily, and which therefore makes tax avoidance and evasion more difficult.  - Fifth, any reform package must result in a tax system which is fairer, so that Australians are only required to pay tax according to their capacity to pay, and the overall system must be progressive.  - Sixth, any tax reform must not disadvantage recipients of welfare benefits, and should reduce or remove “poverty traps”.  - Seventh, if any reform package which includes changes in indirect taxes is contemplated, it must be acceptable to the various groups in the Australian community whose response will determine whether we can maintain moderation in wage movements.  - Eighth, any reform must provide the best possible climate for investment, growth and employment in Australia.  - Ninth, any reform package must have widespread community support, including support at a widely representative National Tax Summit of economic organisations and community groups.  We therefore propose to convene a widely representative National Tax Summit during the third quarter of 1985. And at that Summit we shall take specific steps to ensure that the citizens of Australia are directly represented in their role as taxpayers. When at the last election I foreshadowed the National Economic Conference as the first step towards national reconciliation and recovery, there were those who said it wouldn’t work, the scoffers who said it was an abdication of the role and responsibility of the Government. I made it clear then, and I made it clear at the Summit itself, that there would be no abdication and that the elected Government would exercise in full measure its role and responsibility for the economic management and the economic decision-making of this country. That of course is what we have done, and will continue to do. The great and complex task of tax reform has been made immeasurably more difficult by the failures of thirty years of Coalition rule, the incompetence and excesses of their final seven years, and the present dominance of short-term political expediency in their contribution to the tax debate. I am confident that the task of tax reform will be advanced by bringing to it the concept of consultation and co-operation which has already produced such splendid results and such enduring benefits for the people of Australia.  Towards a fairer Australia.  The third great challenge for the Government during its second term - a challenge which is basic to the objectives of the Australian Labor Party and this Labor Government - is to maintain the momentum of our first term to create a fairer, more just, and more equitable society. All Australians - whether as individuals, or as members of families - know that the Government's success since assuming office in achieving non-inflationary growth must continue if their best hopes for themselves, for their families, are to be met. There's nothing abstract about the welfare of the Australian family. What concerns the ordinary Australian family is:  - that there should be jobs available now for parents and in the future for their children.  - that they can purchase their own home at a reasonable cost and not have to face crippling interest repayments.  - that their children can receive an education which equips them in the best possible ways for their lives ahead.  - that they and their children have access to healthcare at reasonable cost; and that throughout their lives, but particularly in their old age, their income and savings are not eroded - by inflation.  And above all, that every Australian family has the opportunity to maintain and improve its standard of living. And that's where our efforts have been directed and will continue to be directed. And our efforts to ensure that these aspirations of ordinary Australian families can be realised, will continue unremittingly during our second term.  Child Care.  In our first two Budgets, we have doubled the resources for child care services. This is a-commitment to benefit both women in the workforce and those who choose the home. In our next term we will provide as a matter of high priority further substantial increases in the number of child care places. In the next three years we will create an additional 20000 places for child care. There are two groups in our community who are particularly exposed at times of economic and social change, and for whom the Government has a special responsibility. They are the young, on whose shoulders will rest the future or our nation; and the aged who have contributed so much to the nation that we have inherited.  Schools.  The Government has already contributed in a number of significant ways to helping the young. In primary and secondary education we have both provided greater stability in funding, and substantial funding increases for Government and non-Government schools over the next eight years. We have ended he divisive and sterile State Aid debate which distracted attention from crucial education issues. Over the next eight year period  Government schools will receive a real increase of 49,3 percent and non-Government schools a real increase of 17,2 percent. These funds will be used in the most effective way both to improve quality of education, and to provide incentives to remain in the education stream.  Tertiary.  At the tertiary level the Government has also provided the first significant injection of additional resources for more than seven years. As a result, at least 15000 more students will attend Universities and Colleges of Advanced Education by 1987, and a further 15000 full-time places will be created in Technical and Further Education institutions.  Youth employment.  The Government's concern for youth has extended well beyond formal education, and into its labour market and training programs. There has been an increase of 46 percent in the Community Youth Support Scheme, a program which the previous coalition Government sought to abolish. The trade training program has increased by twenty-eight percent over the last Budget of the previous Government. Our allocations for Youth Training Programs in each of our first two Budgets was around seventy-five percent higher than that provided by the previous coalition Government in 1982-83. As well, of course, our youth has benefited substantially from the Community Employment Program, which has been the Government’s major initiative in providing worthwhile employment and other disadvantaged job seekers, who would not otherwise directly benefit from economic recovery. The Government is concerned to ensure that our job creation programs give rise to the development of more permanent opportunities. Accordingly we will be establishing a New Enterprise Incentive Scheme on the pilot basis during 1984-85. This scheme will be implemented as a joint Federal/State program. Unemployed people with viable business propositions will be eligible to receive continued income support from the Federal Government for up to a year while they establish their own small enterprise. An allowance broadly equivalent to the unemployment benefit will be paid to eligible participants in the scheme, who are unemployed and have a viable business proposal. We are determined to pursue every available route to secure long term employment for those still out of work. We will also be exploring the possible extension of @ with the private sector. Our object is to assist the unemployment back into permanent workforce. The Government will continue to give a high priority to youth in its labour market and training programs during its second term. We will be guided by the findings of Kirby  Inquiry into Labour Market Programs and the O.E.C.D. review of Youth Policy in Australia. But above all we must ensure that the level of youth unemployment in our nation- in many ways our most scandalous inheritance from the previous coalition Government- continues to be steadily reduced during the Labor Government’s second term. There have been some promising signs in recent months. For example during the last twelve months there has been a seventeen percent reduction in the number of teenagers seeking full-time employment and a twenty-four percent reduction in teenagers unemployed for more than six months. But the Government acknowledges that this improvement is still a long way from being good enough, and further substantial progress must be made during our second term. It is essential for the wellbeing of our nation that in the years ahead our youth should have access to better educational opportunities and to improved labour market and training programs. It is essential that more jobs be found for them. The policies we are pursuing will ensure these fundamental objectives are achieved.  I.Y.Y.  And it is essential that the voices of our young be heard now. Our Government will be inviting the youth of Australia to be active contributors to and participants in International Youth Year in 1985 and beyond. We want the youth of Australia to be involved in planning for their future and Australia's future. And we must specifically address - as I will later - the very real concern of many of our youth, and do everything in our power to ensure that they do not inherit a world over which hangs the spectre of nuclear war.  Aged Care.  The other community group that is entitled to and will be given particular support by the Government is the aged. And the Government has provided such support during its first term. In recent years, reductions to the Consumer Price Index as a result of chances in health insurance arrangements have provided pensioners with a graphic illustration of the differing attitudes of the major political parties towards pensioners. When confronted with the opportunity to compensate pensioners with a special adjustment for their changes to Medibank, the coalition Government bluntly and callously refused. When faced with the same decision in its last Budget, my Government unhesitatingly made a special adjustment and added a bonus as well. In 1984/85 as well as indexation adjustments, the basic rates of all pensions have been increased to $ 2,50 a week for single pensioners and $4,20 a week for married pensioners. I leave it to the pensioners of Australia to judge for themselves which Party truly protects pensioners’ interests. And  I do that with complete confidence the verdict. In addition the extra assistance for those particularly needy pensioners who rent privately has been increased by fifty percent or $5 a week. There have also been substantial rises in assistance for the unemployed, the children of low income families, the handicapped, and also for aged and disabled persons  accommodation. We will establish a new cost-shared home and community care program. This will integrate existing programs into a single program and expand into new areas with substantially increased funding. We will provide increased support for aged and disabled people to help them remain in their own homes and their own neighbourhoods and to remove as far as we can a burden of anxiety and frustration. When they wish to, our elderly should he able to remain in their familiar environment, and be given assistance through meals-on-wheels, home nursing, house maintenance and other services to meet their needs. Over the next three years, our Government will contribute $300 million to this integrated program. To co-ordinate the provision of all Government services to the elderly, we will establish early in our next term an Office of Aged Care. It will establish priorities of need for aged and retired people, assess facilities throughout Australia and bring together the legislation and service provisions currently scattered around various Government Apartments.  Assets Test.  There is no part of this election campaign that has been more cruel than the calculated attempt to create needless confusion and anxiety among the aged and other pensioners in our community over the assets test. It has been introduced by the Government as a necessary supplement to the existing income test to ensure that there is the fairest and most equitable distribution of resources to pensioners. The desperate attempts by the Opposition to use this issue to scare those people who have contributed so much to our nation in peace and war are to he deplored. Those scare stories are utterly without foundation. The assets test will affect only two percent of all pensioners. In l984/85 the increase in payments to all pensioners will total $655 million - about fifteen times the revenue generated in a full year by the assets test. And that’s the real proof of our concern for pensioners. And I give four the unequivocal commitments about the assets test:  The first is that they will never see social security inspectors in their homes.  The second is that the information gathered for the assets test will not be used for any other revenue purpose.  The third is that the assets test will not be made more stringent by this Government. Indeed we have indexed the limits to ensure that this does not happen.  And fourthly, we will continue through the Office of Aged Care to monitor the assets test carefully to ensure that it is fairly administered.  The worst thing that the Australian pensioners have to fear - whether they be the ninety-eight percent totally unaffected by the assets test, or the two percent who are in some way affected - would be a return to the level of inflation which existed under the Liberals with its devastating impact on their living standards. But we will do more than just protect the pensioners of Australia from the ravages of renewed inflation. We will continue to ensure that they all share in the new prosperity. And specifically we will continue to work towards the goal of raising the basic pension rate to twenty-five percent of average weekly earnings.  Veterans Affairs.  In Veterans’ Affairs, the Government, in its second term, will take further initiatives to improve benefits and care for our veteran community. The Government accepted its responsibility to Vietnam veterans by establishing the Royal Commission they requested. The Repatriation Legislation Amendment Act will be the basis for the long overdue overhaul of the pensions-determining system, and will end the delays and procrastination which plague the system. We will, next year, introduce the Veterans Entitlements Bill to simplify the present confusing and often contradictory legislation dealing with veterans' entitlements. There will be close consultation with ex-service organisations before the legislation is introduced. But one undertaking I can now give - war widows will be allowed to retain their pensions and treatment eligibility if they remarry. In its consultative arrangements, the Government has been greatly encouraged by the close working relationship it has already established with representatives of the veterans' community and it looks forward to maintaining this relationship in future years. The Government also intends to continue upgrading repatriation hospitals to meet the needs of an ageing veteran community. This will complement the widely-praised Veterans Home Help Scheme, which greatly assists frail aged veterans to maintain their independence.  Health.  One of the Government's most significant contributions to a fairer and more equitable Australia during our first term has been in the provision of health and social services, @  areas of great devastation under the previous Government. During our first term, social service benefits have been substantially increased, and health services have been extended to all in the community. With the introduction of the Medicare program, Australia now has, for first time, a fair, affordable and stable health insurance system covering all Australians. Medicare has put an end to the constant changes in health insurance policy that have marked the past decade. Yet that is precisely what our opponents propose – a return to the pattern of their years in Government, with four separate confused and confusing systems in five years; yet each scheme leaving at least two million Australians without any health cover at all. And their new proposals involve three more changes- and then abolition of Medicare. I ask for your renewed mandate for Medicare. And I now give this undertaking- that for the term of our next government, the Medicare levy will not be increased. We will extend Medicare to provide reciprocal health care arrangements for countries with which Australia has close ties, notably Italy, Greece, Yugoslavia, the United Kingdom and Eire. The Government is firmly committed to maintaining a safe and healthy working environment and has established, with the co-operation of the States, a tripartite National Occupational Health and Safety Commission to develop a comprehensive national approach to occupational health and safety.  In our second term the Government will concentrate its health policy on initiatives designed to improve the health of the community, including increased emphasis and health awareness. The Labor Government will also upgrade the community health program through an expansion of the existing access of groups such as pensioners, children and the unemployed to a wide range of health services, including dentistry, physiotherapy, speech and occupational therapists. This year $18 million will be provided to the states for these programs as part of Medicare. Fellow Australians, I have stressed the fundamental importance of the maintenance of our policies of growth without inflation in our drive for a fairer, better Australia. But the enhancement of the quality of life and the widening of the opportunities our great country should offer to every Australian, demand even more than effective economic management. It requires a Government - a Labor Government- determined to remove the disfigurement of discrimination from our society; and a Government determined to save the rich and diverse beauty of our country, a Government staunchly encouraging the special skills and talents of the people.  Status of Women.  One group in our society - indeed half of our population -which has for too long carried the burden of discrimination - is women. The Government has acted swiftly and decisively to fulfil its commitments to improve the status of women. During our first term, the Government has taken substantial steps to improve women's access to employment, to education and training and to childcare. We have enacted sex discrimination legislation. With the co-operation of major private and public sector employers, we have initiated a wide-ranging pilot program to test our Affirmative Action policy proposals, prior to their being legislated. We have significantly increased spending on child-care, appointed the National Women's Consultative Committee with substantial back-up funding, legislated for equal employment opportunity within the Australian Public Service, and appointed more than 100 women to Government boards, authorities or advisory bodies.  Aboriginal Affairs.  A second group that has borne the brunt of discrimination in our society for too long, and which the Government has sought to redress, is the aboriginal people. The next three years, leading up to the Bicentennial year of 1988, provide for all Australians an opportunity- and a responsibility – to ensure that our aboriginal people have a secure and just place in Australian society. In the next three years, we will continue to expand on the initiatives already taken supporting the Aboriginal community in the fields of employment, education, housing, health and the aboriginal culture. Expenditure increased by more than twenty-seven percent in our first Budget and by fourteen percent in the current Budget. The vital matter of land rights for aboriginal people is currently the subject of extensive consultations by the Government. We are well on the way to a just, equitable and enduring solution which assures that the interests of all parties are adequately protected.  Organised Crime.  It will not be possible to achieve a better Australia if our society is weakened by the scourge of drugs and the growth of organised crime. In recent weeks increased attention has been paid to the growth of organised crime in this country. The Government’s detailed response on the issue of organised crime was outlined by me in a statement to Parliament on 2 October. Our Government is committed to an unrelenting attack on organised crime. To this end, the resources of the Australian Federal Police will be substantially increased during our second term. We will immediately upgrade the AFP’s computer capacity at a cost of more than $7 million and an additional $10 million will be spent in recruiting an even stronger force.  Drug traffic.  But our responsibility both as a community and as Government, goes beyond the responsibility to enforce the law. In the case of the drug trade, particularly as it affects our young people, we must do more than put those who traffic in drugs behind bars. We must educate our youth about the damage and danger of drugs, and we must do more to rehabilitate those in our society with drug-related problems. One of my first tasks after our re-election will be to call together the State Premiers, to co-operate with me in initiating a national campaign against drug abuse. This is one fight we must fight together, above party politics, above political differences. And I am confident we will. And in prosecuting this national campaign, no resources will be spared to remove this evil from our society. Our great goal is to create a better and healthier society, and a nation in which the creative talents of our people are fully developed. We have substantially increased funding and support for sport and recreation. We will maintain that support. In our third Budget we will carry out our earlier undertaking to make available to sports men and women who are subject to widely fluctuating incomes within a relatively short career, similar tax averaging provisions to those made available to farmers.  Arts.  We now propose to extend that concession to artists in the performing and visual arts.  We will make sufficient funds available, in this financial year, to the Australia Council to maintain the real level of funding for the companies of excellence in the performing arts. In the arts the Government will also maintain its effort to support and stimulate the creative talents of our people at all levels in the future, and to preserve our heritage in this field, as we have done through the National Film and Sound Archive.  Environment.  The 1988 Bicentenary celebrations will provide a focal point for much of the Government's activities in the field of the arts and the preservation of our heritage through the development of museums, libraries and conservation programs during our second term. On environmental issues Australia is fortunate in having five natural areas which have ready been given world heritage status because of their unique and outstanding value to mankind. The Government believes that we are yet to fully explore all the advantages that can be gained by having such areas of international renown. In our second term we will consider nominations from all States for areas they believe should be given world heritage status and we would work to have these areas accepted for world heritage nomination.  Referendums.  On the first of December, you will not be asked to continue with us in the work of building a fairer and better Australia. You will have an opportunity to make a fairer and better Constitution for Australia. I ask for your support- for a yes vote- to the two referendums we are placing before you. Our first referendum proposal will provide for simultaneous elections for the House of Representatives and the Senate. This will reduce the number of elections. Governments will be able to get on with the job of governing and costs to taxpayers will be significantly reduced. This is the same proposal submitted to the people by the previous Government in 1977, supported by al parties, and, at the polls, by a big majority or the Australian people. Our second referendum proposal will allow the Commonwealth and the States voluntarily to refer powers to each other. This will correct the present one-sided situation where the States may refer powers to the Commonwealth, but the Commonwealth is not able to refer any of its exclusive powers to the States. Both these proposals were given firm support by the coalition- right up to this election campaign. Such is the measure of the Opposition’s principles and integrity!  Foreign policy, defence and peace.  Fellow Australians, we have fulfilled the fundamental pledge we made to you twenty-one months age- to bring Australians together in the great task of recovery from the  economic crisis which then confronted our nation. But side by side with economic recovery we have marched towards recovery of that sense of national self-confidence and self-reliance which Australia at its best can show to the world. The alliance with the United States forged forty years ago by the Curtin Labor Government is now a more constructive relationship than it has ever been in peacetime. We have made ANZUS more than it has ever been, a close and genuine partnership, in which our views, even when they differ, are firmly and frankly expressed and mutually respected. Our voice is our own, not an echo. We have added substance to the partnership by increasing our defence spending substantially in real terms. The Government is committed to maintaining significant growth in defence spending and a greater degree of defence self-reliance. We have given priority to developing Australia’s relations with our neighbours - Papua New Guinea, the ASEAN countries and the countries of the South-West Pacific. We have significantly expanded co-operation with the great powers of China and Japan. Australia is now seen in this region as a constructive and credible partner. Australia has never stood higher in the councils of the world. Its credit and credibility are unsurpassed in our history. This was demonstrated very clearly by the record mandate which Australia was given last month by the world community- the largest ever recorded in the United Nations - for the seat on the Security Council which we will take up in January 1985.We intend to draw on our new international respect and credibility in order to pursue the cause of peace, arms control and disarmament, to which this Government has given an unprecedented priority. We will continue to throw such weight as we have behind all measures aimed at reducing nuclear arsenals, at achieving balanced and verifiable arms control agreements between the superpowers, at strengthening the international non-proliferation regime, at ending nuclear testing, at creating Nuclear Free Zone in the South Pacific region. We will pursue these efforts unremittingly, not only in the councils of the United Nations, but through dialogue with the wide range of countries with whom we can talk constructively. It was our concern for peace in our region which led the Government last year to seek ways to use its access to assist the resolution of the Kampuchean problem. And in the supreme issue of world peace, we will not be daunted or deterred by the magnitude of the task ahead. Since the U.S. Presidential elections I have confirmed to the President of the United Slates the view I have urged ever since our first meeting - that a fresh start can be made on East/West relationships and specifically that a new dialogue should begin as a basis for concrete measures to reduce the threat of nuclear war. I have been encouraged by President Reagan' s own views along these lines and have expressed to President Chernenko our deep hope that the Soviet Union will respond positively. In particular, I urged upon the Soviet leader our view that we saw an early meeting between himself and President Reagan as being of immense value in the search for positive steps to reduce the threat or nuclear war. Our efforts to create a better and safer world extend beyond arms control and disarmament to helping the poorer countries of the world as they struggle to raise their standards of living, and to fight poverty and famine. The Government’s accelerated efforts in response to the worsening famine in Ethiopia, with magnificent support from the Australian community and splendid co-operation from private aid organisations has been indicative of our concern. It is gratifying to read reports that Australian grain has arrived in Ethiopia in recent days and is on its way to the starving. The Government substantially increased Australia’s aid vote during our first term. Now we will be working to ensure that our development funds are used as effectively as possible to achieve these objectives, in line with the recommendation of the Jackson Committee.  My fellow Australians,  The high standing and reputation, the new respect in which Australia is held around the world, has not been the work of your Government alone. It is true that since the fifth of March 1983, my colleagues and I have worked unstintingly to carry out the undertakings we gave on behalf of the Australian Labor Party of the Australian for a program of national reconciliation, national recovery, and national reconstruction. No Government in Australia's history has a prouder record of the faithful fulfilment of its mandate, despite inherited difficulties of almost unprecedented magnitude. And I am proud indeed to be the leader of a team with such a record of achievement, with such recognised talent. But it is also our own achievement, because the world has seen once more, as it saw in the crisis of war forty years ago, what Australians can achieve together, if they can be brought together to work in a common effort for common goals. The new world-wide confidence in Australia and its future in the great and growing region to which we belong, is itself a reflection of our new self confidence, our confidence in ourselves and in our own future. The new respect for Australia reflects our new self respect. It is on the basis of that confidence in ourselves that we now have an unparalleled opportunity to build an even better, fairer Australia. Never then was it so important that we should unite to resist and reject those in our midst, whatever their motives, whatever side or interest they purport to represent, who would seek to undermine the very fabric and foundation of our new national self-confidence and national self-respect. And at the heart of national self-respect lies respect for each other and for the rights of all. And that has been the principle behind the great truth that the Australian community has come increasingly to realise that since March 1983 – the truth that the legitimate aspirations of each group can best be achieved, not by fighting each other, not by contrived conflict, not by setting group against group, Australians against Australians, but by working together, recognising and respecting each other’s rights, reasonable expectations and fair aspirations. That is the fundamental principle on which we can now work together to build an Australia dedicated to fairness, justice and genuine equality of opportunity for all: so that we can truly say as we approach the third century of this modern nation, that we are building together a nation in which there are no second-class Australians. A nation where each of us, irrespective of background, origin, faith, age or sex, will have undiminished title to the proud name of Australian. An inalienable entitlement for all to fairness, justice, tolerance, dignity and security. A nation in which all can share fairly in the abundance and all the opportunities offered by this grate country of ours, in the great years now within our grasp. THE CH0ICE.  CONTENTS.  • THE CH0ICE 5.  • PROSPERITY FOR AUSTRALIA 7.  • ENCOURAGING FAMILIES 17.  . RETIREMENT SECURITY 22.  • A SECURE AUSTRALIA 26.  • ONE NATION, ONE FUTURE 31.  . MAKING GOVERNMENT SERVE THE PEOPLE 37.  • THE LIBERAL DIRECTION 45.  This election is about the future for Australian families and the sort of Australia in which they want to live when we reach our bicentenary in 1988.  It is about whether we want families to be able to make their own choices about their own future - about their health care, their school, the way they spend their incomes - or whether we want the Government to make that choice for them.  It is about whether our elderly will have the security they deserve and our young people the jobs - and self-respect - they need.  It is about whether we are to enlarge the role of the Government and diminish the role of the individual and cripple the enterprise and effort on which a prosperous country depends.  It is about whether we want to reward thrift and initiative or punish those who work, save and invest.  It is about whether we want a free competitive enterprise system in which profits create investment and investment creates jobs and wealth or whether we want a system of bureaucratic direction and interference, in which the Government knows best.  It is about whether we want to improve the capacity of Australian industry to compete on the world stage.  It is about whether we want to continue to respect our heritage as a nation - our flag, our Queen, our Constitution, our values and our standards of government - or whether we want to create tensions and division within our community with radical change.  Australia can have one of the best futures in the world. In our resources, our traditions and the quality of our people we have great potential.  The Liberal Party has a clear direction for Australia. It is a direction based on our faith in ordinary Australian families and their capacity to make the most of their opportunities. It is a direction which is based on an optimistic spirit and a confidence in what people can do for themselves - for that is the essence of the Liberal approach. We have set six goals for Australia:  - to achieve prosperity for all.  - to give effective support to families.  - to ensure retirement security.  - to achieve a secure Australia.  - to keep us one nation.  - to make government serve the people.  In this document we have not made lavish promises or given commitments on every subject. Our individual policy statements have indicated our more detailed goals. Here we have set out our main priorities. Recently there have been many warnings about the economy outlook and the budgetary position in 1985 and beyond. Some of them have come from the Labor Government itself. It will only be possible to implement some of our commitments in our program as economic circumstances permit. But in our first budget we are committed to implementing our proposals for:  • a new deal for families with children, through tax cuts and child care rebates.  • abolishing the assets test.  • removing the extra tax on lump sum superannuating.  • starting the process of restoring choice in Medicare.  • beginning to restore the spending cuts in defense spending.  • tax relief for small business.  • widening opportunities in education and further training.  • helping primary industry to reduce its excessive cost burden.  If we can possibly do more we will. But we will not promise more in our first budget than we believe we can fulfil.  GOAL ONE: Prosperity for Australia.  The economic recovery that appears to be underway in Australia is largely the result of three factors for which Labor cannot claim any credit: the growing international recovery; the ending of the drought; and the last Coalition Government's Wages Pause which enabled Australia to take advantage of the international upturn.  Now we need to turn this fragile, short-term recovery into lasting prosperity.  This can only be achieved by a series of fundamental changes which aim directly at improving our international competitiveness. It is only a more competitive economy which can place Australia on a steady path of growth - and provide the jobs we all want to see.  Labor's policies are not jobs policies. Their commitment to high taxation and high spending policies can only penalize investment, incentive and job creation. Under Labor real interest rates have become among the highest in the OECD group, again penalizing investment and jobs. Add all these to Labor's inflexible wages policy and increasingly wider number of regulations - then Australia's economy can only become more inflationary and less competitive.  In contrast, our approach is to take advantage of change with positive and outward-looking policies. The next Liberal Government will:  • Introduce a new industrial relations policy to make Australian industry more competitive and maximize job creation.  • Reduce reliance on personal income tax by broadening the indirect tax base.  • Place effective limits on Government spending to allow tax cuts, reduce the deficit and interest rates and give the private sector room to grow.  • Reduce government regulation and interference.  • Sell off some government controlled enterprises such as ANL, Medibank and TAA where the interests of Australians would be better served if they were operated by private enterprise.  WAGES AND INDUSTRIAL RELATIONS.  Liberals do not accept the Labor view that high unemployment is inevitable.  There is a way to more widely share the benefits of economic recovery. And that is to gear policies to the interests of ail Australian workers - not only those currently employed but the six hundred thousand out of work.  The reality is that under the exclusive agreement between Labor and the ACTU - the Accord - unemployment remains unacceptably high. The trade unions are an important part of our country - but they are only a part, not the whole. They should certainly be consulted by the Government, but they should not run it.  The Accord's wage index and extensive non-wage cost increases can only reduce the incentive to invest. We have become accustomed to hearing the constant cry for more and more money, more services, more government spending, more perks - but we never hear where the more is to come from. There can be more - but only if we invest and produce it first.  We will introduce a much freer, decentralized and flexible structure in which Australian business and industry can work. A positive environment of industrial relations, reform, deregulation, of incentive for work and achievement will be provided so that business can make profits and workers can get jobs.  The present system takes no account of the realities facing Australian businesses - and it takes no account of the need for awards and conditions to be tailored to what industry as a whole, and individual firms in particular, can afford to pay. The result bas been to discourage competitiveness and keep people out of work. The biggest losers have been the hundreds of thousands of small businesses and their employees and the unemployed, especially the young.  We will introduce a new tribunal to replace the Arbitration Commission. It will have the power to fix a minimum wage. It will be up to individual employers and employees to work out over-award conditions and rates (e.g. penalty rates) and thus share in the benefits of co-operation. The responsibility for the future of a company will not be able to be passed off on to big groups and institutions who have no direct interest in it. Individual companies will also be free to vary award terms and conditions to preserve employment if there is unanimous agreement between an employer and his employees. We shall ensure the tribunal's decisions can be properly en-forced.  Our more flexible wage-fixing structure will mean many companies who want to take on additional workers will be able to afford to do so. Young people will also benefit from our inquiry into junior wage rates to ensure teenagers are not priced out of work.  A Liberal Government will introduce a range of measures to support the nights of workers to choose their own conditions - with a much wider introduction of permanent part-time work on pro-rata terms and conditions, including the Public Service.  We remain opposed to Labor's plan to remove the ban on secondary boycotts.  We shall encourage initiatives such as profit sharing to create a greater sense of partnership in industries.  There has been a lot of rhetoric from the present government about "bringing Australia together". Liberals will commence this process in the heart of the economy - by encouraging employers and employees to share in the responsibilities and benefits of industrial co-operation. The best of our international competitors do this - it is time we did.  CUTTING TAXES.  To become more prosperous, Australia must become more productive and Australians must be given more incentive to be productive.  Taxes have to be held down so that hard work, responsibility and success are rewarded. Our tax policy contains four clear commitments:  • We will not allow any increase in the overall tax burden, and over lime, we aim to reduce taxation as a proportion of GDP by a combination of spending restraint and economic growth.  • We will reduce the present heavy reliance on personal tax as a source of revenue by broadening the tax base and placing greater reliance on indirect taxation.  • We will give families with children priority for personal tax relief.  • We will abolish Labor's assets test and reverse the Labor Government's changes to the taxation treatment of lump sum superannuating payments. We will not introduce a Capital Gains Tax or tax on wealth or death duties.  Today, hundreds of thousands of families on average wages are losing 46 cents of every extra dollar they earn to the tax man - a rate of tax that in other countries only the rich are forced to pay. We now have the highest taxing Government in our peace time history. Such rates are a disincentive to people trying to get ahead.  Australia places an excessive and growing reliance on personal income tax. As a result more and more people are moving into higher tax brackets, destroying the incentive to work or take a risk and reducing the incentive to save. So the next Liberal Government will start the move away towards indirect tax.  Changes will be gradual, predictable and carried out in such a way as not to disadvantage any particular sector. Welfare and pension recipients on indexed benefits will be protected against the increase in prices.  In the current budgetary circumstances, it would be irresponsible to promise further immediate tax relief. In an improved climate, it should be possible to further reduce the burden of personal income taxation. But our direction is clear: less personal income taxation and more incentive to achieve.  REDUCING THE SIZE AND THE POWER OF GOVERNMENT.  The Liberal strategy for growth puts high emphasis on curtailing and reducing government expenditure - the major cause of our current levels of taxation and debt - and in removing those regulations which inhibit economic competitiveness.  By limiting the growth of the Public Service and controlling government program commitments, we can make significant savings and cut the current deficit and level of debt.  In the past two years, the Hawke Government's growth in expenditure has been nearly 7% per annum in real terms. This is in sharp contrast to the previous Coalition's seven-year average growth of only 2% per annum.  Reducing the current rate of growth in government expenditure by only 2%, a feasible target for our first budget, would result in a saving of $1200 million to tax-payers. By placing a ceiling on Public Service growth - a major item of increase in the last two Hawke Budgets - a Liberal Government would produce real savings for taxpayers.  We do not claim that reduction in Labor's frequently sharply higher expenditure programs can ail be achieved dramatically overnight. Some changes can only follow thorough investigation of the effectiveness of the programs that have been introduced. There are, however, some areas of Government expenditure where reductions can be achieved.  For example, largely because of Labor's Medicare scheme, Commonwealth outlays on health have been increased by an extraordinary 81 per cent in Labor's first two Budgets. Expressed in terms of 1979-80 prices, Labor has added almost $1.5 billion to health expenditure in just two years. And because of the fundamental weaknesses of the Medicare scheme itself, there is no doubt that the cost explosion will continue. In contrast, our changes to Medicare would result in major cost savings.  The next Coalition Government also will reduce substantially the cost of government administration. In the 1984-85 Budget, total Commonwealth administrative costs are projected to increase by a massive $724 million (16.7 per cent). In part, this increase reflects the expansion of public sector programs under the current Labor Government and this will be reduced by bringing program commitments back under control.  A Coalition government will also commence a program of sustained deregulation - both to cut government costs and to also allow more competition in the Australian economy.  We will continue the process of getting government out of regulating the, finance market - therefore allowing much greater competition in this area, to the ultimate benefit of business and consumers. We will continue the deregulation of interest rates, a move which will be of direct benefit to ordinary Australians and to Australian industry.  In the section, "Making Government Serve the People", we outline further deregulation and privatization measures which will have the effect of reducing the power of government and improving the position of taxpayers, consumers and business.  Reducing the size and power of government cannot be achieved overnight and there is no one magical solution. Instead, reductions in the burden of government will come from a range of programs within the context of an overall strategy for economic growth. The Hawke Government bas sharply accelerated growth in government and that means higher taxes and charges. It is the Liberal strategy to put firm controls on growth in the public sector now - as the best insurance for the future.  GETTING OUR MANUFACTURING INDUSTRIES GOING.  A vigorous, internationally competitive, ex-port-oriented manufacturing sector is a fundamental element in the restoration of economic prosperity and a high standard of living for ail Australians.  Government strategies cannot themselves produce revival - but they can produce the climate within which revival can take place.  The fact is many Australian manufacturing industries are highly efficient but are burdened by a generally uncompetitive domestic cost structure, including an inflexible wages System. Liberal policies are directed at overcoming many of the barriers to competitiveness.  The Liberal direction is to ensure that all of our industries can operate in an increasingly volatile international environment.  Accordingly we reject trade and industry policies which seek to permanently protect Australian industries from the realities of the market. Some industries must be restructured so that others can grow to provide more jobs.  We will promote structural changes to improve efficiency and competitiveness. There will be orderly and phased reductions in Australia's trade barriers, particularly those which are conducive to inefficiency, distortion or inequity. We will act swiftly to protect Australia from the damaging effects of dumping and unfair overseas trading practices.  The emphasis in our policies is to give business more freedom - as is reflected in our industrial relations policy, our taxation and budgetary policy and our policy on deregulation.  In keeping with this approach we will abolish EPAC, the Australian Manufacturing Council, and its advisory Industry Advisory Councils and their bureaucracies. They will be replaced with advisory bodies which are not dominated by big unions and big government.  Excessive regulation is a heavy burden on industry. We will take firm action to reduce the amount of Government regulation and to give both the "victims" and the "beneficiaries" of regulation a voice in reviewing regulations.  We will continue the process of deregulation of financial markets and interest rates - a move which will be of benefit to the consumer and industry.  As budgetary circumstances permit, we will move towards reviewing the current situation with regard to the taxation of dividends and towards maintaining and ex-tending investment allowances, so as to encourage more local investment in Australian companies.  And there will be more flexible research and development incentives in the private sector - through taxation incentives. Australia's record in the field of science is one to be proud of- now there must be more encouragement of greater research in the private sector.  There will be increased emphasis on linking the Australian economy with our neighbors - particularly in the Pacific Basin. We will consider all feasible ways to liberalize world trade, including initiatives in the Asia-Pacific region.  In keeping with our ex port-oriented approach we will amend the IAC Act to change the emphasis of the Industries Assistance Commission to that of an Industries Development Commission.  These initiatives will emphasize, our commitment to the restoration of a growing role for manufacturing industry.  RESOURCES AND ENERGY.  The development of our resources provides a challenge. Partly as a result of high inflation, high interest rates, excessive labor costs and over regulation, our resources industries have lost their competitive edge. Labor's interference has discouraged investment. A reduction in regulation and intervention, and our commitment to free enterprise and a free market, in which profit is recognized as the incentive and reward for investment, will go some way to restore their fortunes.  Where taxation changes are made they should be based on the use of a uniform corporate tax System instead of specific resources based taxes. Tax impact statements will be prepared before changes are made. We are committed to abolishing the coal levy.  Development of uranium mines and markets is essentially a matter for industry not government and we reject Labor's interventionist approach which has caused Australia to lose investment and jobs. Restrictions on marketing Australia's uranium should be limited to the strict maintenance of international safeguards, and national security.  PRIMARY INDUSTRY.  Our agricultural industries continue to make an immense contribution to our export income, provide jobs for hundreds of thousands of people and sustain the economy of the countryside. Policies for the rural sector need to be flexible and take into account the rapidly changing economic circumstances which farmers have to face through changing market and seasonal conditions.  As a major boost to export competitiveness we will ensure the Commonwealth gradually takes over the entire cost of Commonwealth export inspections. A new drought relief structure will be drawn up which will take into consideration the drought related problem of small business and industry in rural communities. Income stabilization will be improved by restoring income equalization deposits, maintaining the full excise tax rebate on diesel fuel used in the industry and continuing the petroleum freight equalization scheme. The wine tax will be abolished.  Assistance to eradicate brucellosis and tuberculosis will be maintained. Special assistance will be given to assist sugar producers through their current problems.  The rural sector will particularly benefit from the Liberal Party's more flexible wages policy. Even in bad years, Labor's wages policy forces primary producers to carry the same increase in wages as other sectors of the economy. The result is lower investment and a loss of the competitive edge built up by the Australian rural sector.  Primary producers are particularly hard hit by Labor's assets test which clearly discriminates against the rural community. We will abolish Labor's assets test.  The rural sector would also be hit hard by proposals for re-introduction of Federal death duties, which could destroy the family farm. We will not introduce death duties. Nor would we introduce a new capital gains tax, which again would discriminate against primary producers.  As the current Primary Industry Minister, Mr. Kerin, said on 1 December, 1983:  "I think it'd be fair to say in the ALP generally there isn't a strong appreciation of the life and values of people in the rural communities in Australia." Labor's tax proposals support Mr. Kerin's views.  SMALL BUSINESS.  Small businesses are the backbone of the economy - and the keys to investment, growth and jobs. Their success depends upon a growing economy, lower inflation, lower interest rates, and a more flexible approach to wages. Our overall economic policies are directed toward achieving these aims.  We will reduce the rate of company tax for smaller incorporated businesses. We have set aside almost $25 million in our first Budget for that tax reduction.  Access to information for small business will be improved including the introduction of a national small business "hot line". These are only a few of the wide range of initiatives included in our Small Business policy. As stated earlier, we remain opposed to Labor's plans to repeal the secondary boycott provisions in the Trade Practices Act.  The reality is that it is the 700,000 or more small businesses in Australia which will give this country the best chance of solving our unemployment problem. Anything which needlessly threatens investment and effort in small business should not be considered. Labor's apparent plans for a capital gains tax are a threat to small business. There is concrete evidence front the United States that a capital gains tax has a major impact on investment in small and medium size companies. These are some of the reasons why the Liberal Party remains adamantly opposed to a new capital gains tax in Australia.  TOURISM.  Tourism is Australia's fastest growing industry. It is employment intensive; and provides substantial job opportunities for many of the community groups who currently have a high level of unemployment (e.g. youth, migrants). Industry studios have forecast that 125,000 new jobs could be created by 1990.  Our industrial relations policy which provides for greater flexibility will assist this growth and job creation potential. For example, award conditions can vary according to the needs of a particular region, location or part of the industry. Again, our policy proposes that the working of standard hours at weekends or evenings should not attract overtime or penalty rates.  The Coalition's policy document on tourism contains a wide range of other initiatives, including tourist discount air tares, education and training, and encouraging the industry to develop combined rail/bus/airline packages. We would also work with the States and travel industry to promote the concept of specific package deal holidays for the Australian motoring public.  GOAL TWO: Encouraging Families. SUPPORTING THE FAMILY.  Effective support for family life and bringing up children is essential to Australia's future. We are proud of the record of Liberal Governments in encouraging families. The new Liberal Government will build upon that record and make up for me deterioration which has occurred under Labor.  The family is not a static institution. It has gradually changed over time. It is our duty to address change in family life while encouraging its strong, enduring features:  • the desire for a family home.  • help in creating a decent community environment.  • practical assistance to family budgets.  • and the provision of services, like education, to ensure that children have every opportunity.  HOME OWNERSHIP.  Under previous Liberal Governments home ownership in Australia rosé to nearly 70 per cent - the highest in the world. Our aim is to maintain and extend that level of home ownership. Crucial to this task is making housing finance more accessible. As such, further deregulation of our financial market will play a vital role.  We acknowledge that the Commonwealth Government has a special responsibility to cooperate with State Governments to assist the disadvantaged in obtaining adequate housing.  Our basic objectives include encouraging and helping home ownership across the widest possible range of income groups, while concentrating Commonwealth assistance in areas of greatest need.  We will retain the First Home Owners Assistance Scheme (F.H.O.S.) and home seekers eligible to receive benefits under this scheme can be safe in the knowledge that we will honor their entitlements to payments for the full 5-year benefit.  To widen opportunities for first home buyers to buy their own home, we will encourage financial institutions to increase the availability of innovative and flexible loan repayment schedules.  However, the most practical way to help the maximum number of Australians with homes is by responsible economic policies. Current real interest rates in Australia are higher than in all the major OECD countries. This is due solely to Labor's big spending programs and in the end will provide the biggest barrier to expanded home ownership.  FAMILY TAX RELIEF.  Families have been particularly hard hit by Labor. There are additional expenses involved in raising children and families with children have a reduced capacity to pay tax. Previous Liberal Governments increased the value of the spouse rebate and introduced family allowances, but under Labor, families with dependent children are worse off in comparison with other taxpayers.  So the next Liberal Government will give top priority to income tax justice and relief for families with children, including arrangements to give families a genuine choice of whether or not both partners will work.  In our first budget our family tax relief will give couples with dependent children the choice for tax purposes of splitting their total income up to a set limit. Each partner will then be taxed as if they had received half of a specified amount of the total income. In other words we will treat the family as a team in which both partners are recognized as making a contribution to the team effort.  It would be irresponsible to promise too much immediately, given Australia's present budgetary position. But we will make a start in our first budget.  There would be a limit to the level of aggregate income that could be dealt with in this way.  One example is where one parent works and earns $18.500 per annum and his wife has no income. If $18,500 is in fact the limit then they will be assessed for tax purposes as if each had received $9,250 per year. The benefit available at that income level would also be the maximum benefit available for higher incomes. This inclusion of a limit contrasts with the previous income splitting proposal by Mr. Hawke and the ACTU under which the higher the income- the higher the tax cut.  The Coalition family tax relief will make it easier for parents who choose not to work to stay at home. The pressure on parents to enter the workforce regardless of their personal wishes will be reduced.  The income-splitting scheme also has the following advantages.  • It reduces the impact of tax creep, particularly in the 46 cent bracket, around which the large majority of one-income families are concentrated.  • It restores equity for mostly PAYEE wage earners with workers who already have access to splitting.  CHILD CARE REBATE.  In many Australian families both parents choose to work, either full or part-time. Many parents - especially those who are sole sup-porting parents - have no choice. We recognize that going to work, and at the same time having to pay for child-care, adds to the financial burden of many parents.  So the next Liberal Government will progressively introduce a child care tax rebate for families where both parents are employed for at least part of the time or for part of the year. Married couples where one parent is employed and the other is invalid would be eligible. The rebate would be given to single parents where they are employed at least part-time. We will ensure, through a combination of adjustments to the sole parent rebate, and the operation of the child care rebate, that sole parents receive an adequate benefit.  The Liberal Child Care Plan will bring Australian taxation into line with the realities of modem family life. It is an initiative which makes a practical contribution to strengthening the family: gives direct help to the single-parent family and improves flexibility and choice for people to select their own life style.  EDUCATION.  A sound education is the first step towards obtaining a job and a rewarding life. We will restore fairness, opportunity, choice and excellence to the schools System.  The Labor party is still obsessed with the structure of the schools system, paying too lit-tie regard to the quality of education. As a result we have a system which in the view of many parents and teachers all too often fails to provide pupils with even the basic tools of literacy and numeracy. We must restore to every child the chance to progress as far as his or her abilities 'allow. So we will introduce a nation-wide "Basic Competencies Program" designed to improve standards of literacy and numeracy and try to ensure nobody leaves school without the 3Rs.  We will halt Labor policies which are undermining good schools.  We support the revitalization of the Government schools system and will support a Special Schools Commission program for those with a variety of special needs. We will re-establish the basic grant for all non-government schools with a percentage link between government school standard costs and grants for non-government schools so that genuine choice is restored. There will be further assistance to needy non-government schools through additional assistance of up to an extra 21% of government school standard cost. Restoring parents' rights of choice will also help raise standards by giving them greater influence over the education their children receive.  Throughout the education system, we are committed to excellence and equality of opportunity. We are vigorously opposed to Labor's "equality of outcome" which really means "leveling down" and producing children who are ail much the same. Through a range of programs, we will provide equality of opportunity and encourage the development of different talents and levels of ability. We will encourage a diversification of the senior school curriculum to allow students to acquire desired and valued skills.  We will introduce an expanded program for computer education in schools to equip young Australians with the technological skills they need. We will retain the Centers of Excellence program in Universities.  Greater access for the thousands of Australians who want further education will be provided through an Open University. This will particularly assist those people who, because of family, work, health, location or travel commitments, cannot attend tertiary institutions.  To encourage young Australians who want to continue their education, we will increase TEAS to narrow the gap between it and the unemployment benefit.  FIGHTING CRIME.  Australia is one of the best places in the world in which to bring up children. But we must be careful to maintain the standards the community expects and wants, We must give children and young people every chance to grow up in the best possible environment.  That is the responsibility of parents as well as Government.  The approach of Labor to these problems has been inadequate. The Costigan Commission was prematurely terminated despite the pleas of Commissioner Costigan. A National Crime Authority has been set up which is not strong enough and is potentially subject to political veto and interference. And the Labor Government was clearly reluctant to undertake any serious inquiry into video pornography. In the meantime, the war on heroin and other addictive drugs is becoming more and more difficult.  Extreme forms of pornography will have no place in our society. A meaningful inquiry into pornography and the pornography trade will be conducted and appropriate action taken.  A Liberal Government will crack down hard on drugs. There will be no mercy given to organized crime.  As part of the fight against drugs, we will establish a special surveillance command within the Australian Defense Force situated in northern Australia. All the necessary resources of State and Federal governments could be coordinated under this command.  GOAL THREE: Retirement Security.  One of our great national achievements was to lead the world in care for the elderly. Liberals can take pride in the fact that ,we have helped build a society in which those who worked and saved were rewarded in retirement. Australians are as united as ever in their support for a "fair go" for the elderly. Yet in less than two years of Labor Government, retirement security has been undermined. The imposition of the assets test has caused confusion and anxiety. Labor's 31 per cent tax on lump sum superannuating has wrecked retirement plans and forced ordinary Australians to take annuities instead of a lump sum.  The Liberal retirement program will restore certainty and peace of mind to the elderly. People should be actively encouraged by Government to put aside a nest egg for a secure retirement. They should be allowed to work, plan and save knowing that the rules will not be totally changed by Government. These principles are at the heart of Liberal retirement policy.  Th new Liberal Government will act immediately to:  • Scrap Labor's assets test on pensioners.  • Scrap Labor's tax of up to 31 per cent on lump sum superannuating.  We will scrap the assets test for the same reasons we scrapped it in 1976. Those reasons come under four basic headings: intrusion, unfairness, complexity and costs. They are analyzed in detail to indicate the misplaced priorities of Labor.  Intrusion; The truth is that at least naïf a million elderly Australians will receive unwelcome forms and letters from the Departments of Social Security and Veterans' Affairs. The great majority of these people will not be wealthy.  They will be ordinary Australians who live in modest houses and units. Their only mistake was to work a lifetime and pay their tax. Yet now they are told that the rules have changed. They will have to put a value on personal goods and if that value exceeds the limit set by the Government they will lose a part or ail of their pension.  The assets test forms require pensioners to provide information on virtually every aspect of their personal finances and goods. Intrusion is an ongoing feature of the assets test. Pensioners will be required to update information on a regular basis.  Unfairness: Assets tests are by nature, bound to be unfair and discriminatory in operation. This test is no different. It is rid-died with anomalies and inequities.  The assets test discriminates against those 479,000 pensioners who live in rented accommodation. While the Liberal Party firmly supports home ownership and the desire of people to improve their homes, we do not support Government imposing penalties on those who rent.  The assets test heavily discriminates against the 170,000 families who live on family farms. The family farm as a productive unit is not exempt from the assets test. Farmers approaching the pensionable age and those on pensions cannot give their farms to sons and daughters who have often already put in many years of work in building up the farm. The assets test threatens the future of the family farm.  Complexity: The assets test is already generating red tape, entangling and confusing those least able to rearrange their affairs. An additional 1500 public servants have already been employed to introduce and enforce the assets test. In addition to the Departments of Social Security and Veterans' Affairs, the Valuation Section of the Taxation Department will be actively involved in valuing property resulting in many pensioners having to con-tend with more than one Government Department.  Future: In its introduction and first year of operation, on the Government's own figures, the assets test will actually cost taxpayers nearly $55 million. While the costs are growing the Government bas become increasingly vague about future savings in 1986 and after.  The uncertainties surrounding the projected savings from the assets test leads to one conclusion. The present rules and regulations are only the beginning. No Government imposes an assets test that only returns comparatively small amounts of savings.  Should Labor win this election they would be in a position to tighten the regulations and restrictions. For these fundamental reasons, the next Liberal Government will scrap the assets test. We will encourage, not penalize, Australians to work towards a retirement free of worry. Our goal is peace of mind and stability for the elderly.  LABOR'S LUMP-SUM SUPERANNUATING TAX.  We will scrap the 31 per cent tax on lump sum superannuating for similar reasons. No Government has the right to tell people how they can take their superannuating pay out. In the past there was always a choice because of the widely differing circumstances of people. People need increased flexibility in their retirement options for the future. With changing work patterns and increasing movement from one career to another Australians need more flexible superannuating Systems.  Many men and women now complete their first career in their 40s and 50s. They often prefer to take their superannuating pay out as a lump sum to use to start a new business or buy a retirement home.  The Liberal Party superannuating policy lets people make their own choice about how they take their superannuating. We will scrap Labor's 31 per cent tax and return to the previous, fair arrangement.  INDEXATION OF PENSIONS.  We will continue the indexing of pensions according to movements in the Consumer Price Index. We will also move to liberalize the eligibility provisions for the Pensioner Health Card as budgetary circumstances permit.  These are Liberal priority objectives for the elderly. In the longer term though there is a need for fundamental reform of retirement policy.  We see the following elements as vital considerations in the long term improvement of the retirement System:  • Reduction of disincentives and impediments to self-provision caused by the combined effects of the means test and income tax.  • Simplification of procedures to enable pensioners to choose to deal with a single Government department instead of both Taxation and Social Security or Veterans' Affairs.  • A more effective integration of Government income support with superannuating.  • Encouragement of the widest possible employee superannuating coverage with appropriate safeguards for portability and the preservation and vesting of benefits.  • Recognition of the special problems of the self-employed to ensure their treatment is similar to employees. The Liberal Party has supported the comprehensive review of pensioner needs through the current Senate Inquiry. That Inquiry has unfortunately been delayed by the premature election. We look forward to receiving the recommendations of the Senate Inquiry after the election as thy new Liberal Government.  GOAL FOUR: A Secure Australia. FOREIGN RELATIONS.  We cannot isolate Australia from our region or the rest of the world. Our security is totally bound up with the security of our friends and allies in the Western World. It will be guaranteed best by strengthening and contributing to the Western Alliance, the ANZUS Treaty and the Five Power Agreement.  For three decades the ANZUS partnership has been the effective cornerstone of our national security. Our defense links with the United States through ANZUS are rightly seen by Australians as essential to a secure future.  Recent developments have shaken the ANZUS link. The Labor Government has cast uncertainty over the docking and visiting rights of the ships of our allies. The denial of repair facilities for HMS Invincible caused concern and uncertainty amongst our allies.  The actions of the New Zealand Labor Government in banning visits of nuclear powered or armed ships to their ports threaten to reduce ANZUS to a hollow shell. Labor's response has been weak and contradictory in spite of the Soviet naval build-up in the Asia-Pacific region.  We will repair the damage Labor has done to our national security through the weakening of ANZUS. Our strong preference is for ANZUS to continue as an effective alliance with the full participation of all three partners. A Liberal Government will make this clear to the New Zealand Government.  But if the New Zealand Government finds itself unable to play a full part in ANZUS, then the new Liberal Government will enter into negotiations aimed at concluding a bilateral alliance with the United States. Australia's national security cannot be left in continuing uncertainty.  The next Liberal Government will end the uncertainty over the visiting and docking privileges of our allies. While insisting on the highest standards of safety we will welcome the visits of allied ships. We will reaffirm our commitment to the continued operation of the Joint Defense Facilities in Australia as a contribution to world peace and support joint exercises to safeguard the Pacific and Indian Ocean approaches.  As a developed country, geographically close to developing countries, Australia can have a special role of building up trade, political, economic and development ties with our region.  PEACE AND DISARMAMENT.  Of central importance to Liberal Party policy is the prevention of nuclear war. In recognition of this the Coalition has issued a separate policy on "Disarmament and Arms Control".  In a nuclear war there can be no winners, no escape for neutral nations and no protection in so-called nuclear-free zones. Nuclear effects are world-wide.  Clearly, this whole issue is central to the future of mankind.  Under a Liberal Government, several initiatives were taken to promote the cause of peace and disarmament, including Australian participation in the influential United Nations Committee on Disarmament.  We believe that there is a place for nuclear technology in the world in such areas as agriculture, medicine and energy. But we will strongly resist the spread of nuclear weapons. For that reason, we will actively encourage more nations to sign the Nuclear Non-proliferation Treaty and urge the five nuclear weapon states to strengthen their side of the non-proliferation commitment.  Whilst nuclear disarmament promises the best long-term solution to avoiding nuclear war, it is only one part of the answer. The other is the continuation of a viable deterrent as long as it is required. At this time, deterrence remains the only effective and viable restraint.  It is not sufficient to try to prevent only nuclear war. Conventional weapons (including chemical, nerve and bacteriological weapons) are greatly increasing in lethal and destructive power. Moreover, a conventional war involving significant interests of major powers could rapidly accelerate into a nuclear exchange.  A pre-requisite for any effective long-term disarmament must be continuous diplomatic moves to eliminate or reduce areas of tension. In such matters Australia can and must play an active part.  We urge the early resumption of the Strategy Arms Reduction Talks (START).  We will advocate and support a universal agreement to achieve a comprehensive nuclear test ban whether atmospheric or subterranean. We oppose, the French testing in Mururoa Atoll.  Australia is a signatory to the Nuclear Non-Proliferation Treaty - and we should continue working to bolster and broaden its scope. As an exporter of uranium, Liberal policies have established stringent safeguards and monitoring Systems.  We will work to strengthen the role of the International Atomic Energy Agency, to improve its programs and its safeguards and surveillance Systems.  As a respected member of the Conference on Disarmament, Australia has a valuable opportunity to influence discussions and decisions in the plenary sessions.  The task of securing effective arms control and a permanent and just peace cannot rest solely with governments and international conferences. It demands a full community understanding of the many complex problems. It requires comprehensive and reasoned public debate on the issues.  In recognition of the need for a well-informed community, we will provide accurate and objective information and will encourage thorough public debate and scrutiny. With a full public understanding, we will seek to achieve bi-partisanship between all political parties, both on facts and actions.  DEFENSE.  The maintenance of an Australian Defense Force able to deter aggression against Australia, its territories, maritime zone and legitimate national interests is a prime responsibility of the Federal Government.  The Australian Defense Force should be at least independently capable of handing a low level threat and be progressively strengthened so that this independent capability is enhanced. The Australian Defense Force should have the capability to operate and integrate with allied forces.  As the recent Report of the Joint Parliamentary Committee on Foreign Affairs and Defense concluded, Australia's present defense strategy is inadequate and our forces are thinly spread and generally ill-prepared.  Under Labor, defense has not received the budget priority that the current strategic situation requires. There has been a rundown in spare parts, ammunition and fuel. Weapons and equipment are aging. The fixed wing aircraft of the RAN have been sold. Units are operating below establishment. The RAAF has no aerial refueling or airborne early warning radar. The Reserves have suffered an enforced reduction in numbers, bars to new recruitment and a reduction in training.  Liberal defense policy is dedicated to restoring the strength and vitality of the Australian Defense Force. The new Liberal Government will ensure that the ADF is efficiently organized, adequately manned, well trained, properly equipped and backed with the logistic support necessary for it to fulfil its responsibilities.  The serious budget outlook makes it impossible to assess precisely the level of available resources, but we are committed to giving defense a high budget priority. Redressing the run-down under Labor will begin in our first Budget. Priority will be given to Northern and Western Australia for new basing and deployment including a patrol boat facility in NW Australia and a RAAF base in the Cape York Peninsula.  A strong Divisional structure must be retained in the Army and it must be equipped with the manpower and arms it needs. Upgrading the capability of the Operational Deployment Force based at Townsville will be a major priority.  We will program the acquisition of air-borne early warning radar aircraft and bring Jindalee over-the-horizon radar into operation as soon as possible.  An urgent investigation will be initiated into the best replacement for the Oberon Class submarines. We will strengthen the Navy's mine countermeasure forces and anti-submarine capability.  GOAL FIVE: One Nation, One Future.  In four years time Australia will celebrate its two hundredth birthday. Over two centuries, we have built up a great heritage. Perhaps the most outstanding feature of our national experience has been the social cohesion and unity we have achieved. While other nations have been bitterly divided within, Australians have stuck together.  This has taken work, effort and practical wisdom on the part of many Australians. Successive governments have matched a vision of a growing Australia with a sensitivity to making sure that we have the social and economic climate which can absorb the many different peoples who have settled here.  In the next four years, and beyond, we have to apply the same wisdom and sensitivity. There are tensions in our society between groups and it would be unwise to assume that "she'll be right". In controversial areas such as land rights and immigration, we have to exercise foresight and judgement in making sure that we make the right decisions for all Australians.  LIBERAL SUPPORT FOR THE FEDERAL SYSTEM OF GOVERNMENT.  Australia has been well served by its Constitution and the Federal System of Government it established. The Liberal Party is a strong defender of the federal system. Unlike Labor we do not support the centralization of government power.  In a nation as vast and diverse as Australia effective Federal, State and local government Systems are needed to fulfil a variety of functions. We strongly support the division of powers amongst the three tiers of government.  A Federal Liberal Government will respect the powers and functions given to the States under the Constitution and built up over eighty-four years of federal experience. We will work with the States to produce genuinely co-operative and workable solutions to problems that arise.  NATIONAL SYMBOLS.  The Liberal Party reflects the views of the great majority of Australians who support the retention of our flag, and the constitutional monarchy. We believe that many of these traditions are binding influences in our society. The aim must be to build on the strengths - not to destroy them.  As we move toward the Bicentennial Year of 1988, our national symbols will take on added meaning. They embody a great national history. We do not seek to deny our past or to distort it.  IMMIGRATION.  Australia has one of the world's great records in immigration. To continue that record we affirm the following fundamental principles of a responsible immigration policy.  • that people should be admitted as refugees or for family reunion or for the benefit of the Australian community.  • that the size and composition of the immigrant intake should not jeopardize social cohesiveness and harmony within the Australian community.  Immigration criteria will be applied consistently to all applicants regardless of their race, color, nationality, or sex  Applicants will be considered for migration as individuals or family units.  Eligibility standards for migrants should reflect Australian social mores and Australian laws. Migration to Australia should be for permanent settlement.  While migrants have the same rights as other Australian residents, individually or collectively, enclave settlement will not be encouraged.  Policies governing entry and settlement should be based on the premise that immigrants should integrate into Australian society.  The current community concern and debate over immigration policy is the direct result of changes in the immigration program made by the current Government. These changes were made without adequate community consultation.  The Labor Government has departed from the bi-partisan policies implemented by Liberal Governments. Labor has overlooked an essential part of any successful immigration program in that they have failed to take the Australian community with them.  The next Liberal Government will move to restore community support for the immigration program. We will support the family reunion program, fully consider the employment needs of Australians and the short and long term national need for migrants with skills and capital.  MULTICULTURALISM.  The Coalition supports multiculturalism as an enhancement of the Australian way of life. Australia's strength and greatness is enhanced by the diversity of its ethnic groups  The prime thrust of our approach to multiculturalism is not to institutionalize differences between groups. The aim must be to encourage all groups in Australia to participate in the broad mainstream of the Australian way of life, using the general community based services. These services are more responsive to the needs of all Australians, particularly minorities.  Grant in aid schemes to community-based ethnic groups offering services in welfare, education and family support will be maintained. Emphasis will be given to those groups with greatest need and those servicing the most recently arrived settlers.  ABORIGINES AND TORRES STRAIT ISLANDERS.  Australians have a special responsibility to Aborigines and Torres Strait Islanders. Though there are enormous differences, as a group Aborigines are the worst educated, worst fed and worst housed people in Australia. We will give special attention to their real needs through a range of programs better targeted to ensure funds get through to those who can benefit most.  Our policy is to provide a practical approach to the problems confronting the Aboriginal community, with co-operation and consultation between the Aboriginal people and all levels of Government. We recognize that the needs of Aborigines are not uniform across Australia and, in most cases, are most appropriately dealt with by the States. For this reason, we oppose Labor's uniform land rights policy.  Liberal Land Rights policy does not include overturning existing titles and resuming farming land or private property; isolating vast areas from exploration and development; or the Commonwealth Government assuming State responsibilities.  With regard to Sacred Sites we will initiate consultations between the Aborigines and Commonwealth. State and Territory Governments with the aim of developing a better approach to identifying such sites prior to development.  We recognize the need to amend the Northern Territory legislation in some areas, including setting a specific date for the lodgment of land claims and resolving the impasse that has been created in relation to mining exploration and development.  OUR NATIONAL HERITAGE. OUR HUMAN HERITAGE.  A nation that is truly proud of itself respects its natural environment and its historical past.  The previous Coalition Government look several important conservation initiatives. We retain our commitment to managing our environment as a vital natural resource, enabling it to provide our needs for today and tomorrow. We support the National Conservation Strategy for Australia and its objectives of protecting essential ecological processes and life-support Systems, preserving genetic diversity and ensuring sustainable utilization of species and ecosystems. These goals will be met through in-creased Federal-State cooperation.  A Liberal Government will nominate appropriate areas for World Heritage listing with State approval II will encourage the States to join a national program of land use assessment- It will implement a National Conservation Strategy for Australia in consultation with the States, business, farming and environmental organizations. While coastal and marine management are primarily the responsibility of the States and local government, we will work towards the development of a national coast policy. We will also support the development of a national environmental data bank.  We will establish an Australian Environmental Corps where the unemployed may volunteer for service in assisting with conservation projects. We will maintain and develop existing animal protection projects, the National Tree Program and work towards a national program for controlling hazardous chemicals and waste.  To give young Australians a sense of responsibility for their environment, we will look at ways to encourage school children to be actively involved in the regeneration of plant and bush cover in their suburbs cities and towns. The program will give many Australian children the chance to plant a tree for Australia.  In order to preserve our historical heritage, a Federal Liberal Government in cooperation with the States, will give strong support to the Australian Heritage Commission. We will support a program to enable buildings and homes listed on the National Estate to be maintained or restored if they are in serious danger of neglect or demolition.  SPORT AND RECREATION.  Sport and recreation play an important part in our national life. Our sporting triumphs are a focus for national unity and pride. This was recognized by the previous Liberal Government which gave strong support to many of our national sporting endeavors. The establishment of the Australian Institute of Sport was an outstanding example of our commitment to the encouragement of sporting excellence.  We will maintain and develop programs of assistance to our national sporting and recreation associations and support the planned extension of the Australian Institute of Sport.  Sport also plays a vital part in improving the physical, mental and social health of Australians. We will maintain support for community and State based sport and recreation sporting programs. Consistent with our goal of ensuring that the disabled play a full role in the community, we will promote the integration of able and disabled participation and competition.  Sponsorship of sport has become a vexed issue in the Australian community. Our position on this is unequivocal a Liberal Government will support the right of any individual sport to select or reject sponsors.  In regard to sporting contacts with South Africa, the Coalition abides by the principles of the Gleneagles Agreement of June, 1977 and the subsequent code of conduct of May 1982.  ARTS.  The last decade has witnessed a dramatic revival in the understanding and expression of Australia's distinctive national cultural heritage and aspirations. This has been reinforced by an increased community support for, and interest in the Arts and cultural activities.  Funding for the Arts in Australia is a responsibility shared by all levels of Government - Federal, State and Local. The majority of Federal Government funding should continue to be through specialist coordinating bodies such as the Australia Council, the Australian Film and Television School and the Australian Film Commission  We view with concern the controversy over the Australia Council Theatre Board's recently-announced funding guidelines There is a potential threat to the continuation of major Theatre groups which have built up their high standards of excellence over many years.  We will, in Government, initiate an extensive review of the distribution of Government support to the Arts.  GOAL SIX: Making Government Serve the People.  Government plays a necessary part in our lives. But it has also got out of control in some areas - a development which has meant that it costs too much and interferes too much. The Hawke Government's big taxing program is adding to the cost and intrusion of Government.  The Liberal Party is committed to correcting the balance so that government serves the people rather than taking away their freedom to make decisions for themselves.  In previous sections, we have detailed some of the more valuable functions of government. In this section we outline other ways m which we will ensure that government does a positive job to serve Australians.  We also discuss the need to get government out of certain areas, or to curtail its activities. There are some fields - for instance, transport - where a lot less government involvement would result in a lot more benefit to the Australian taxpayer.  EMPLOYMENT AND TRAINING.  The present System of looking after the unemployed has created a series of dead end, dole-recycling programs, which have become incredibly costly. Our first priority is to create flexibility in the economy so that people can get jobs.  We will also introduce new approaches for those seeking work, especially the young. Labor has failed to tackle the major problem of the young unemployed. For a Liberal Government, it will be a priority.  Immediately on being elected to Government, we will sponsor a major. Arbitration Commission inquiry into the relativity’s between youth wages and adult wages, to determine the guidelines for setting junior wage rates in the future. The Bureau of Labor Market Research has found that "youth employment would tend to rise if youth labor costs were reduced relative to those of adults". It also found that junior wage rates have been set in an arbitrary and ad hoc manner, and that tribunals have made little assessment of the needs of juniors or the value of their work.  This is an inquiry which the Government has refused to hold. We will hold it. Social welfare organizations, and other groups representing the young and the unemployed, will be invited to take part in that inquiry.  We will propose to the Commission that they should establish a new training wage for the unemployed, set at a level which reflects the fact that school leavens are unskilled and have little or no work experience. This training wage will last for a specified period, after which young employees will go on to the prevailing award wages.  We will carry out an Australia-wide survey of employer attitudes, to find out more precisely why employers are reluctant to take on school leavens. We will also undertake a survey of jobs which have traditionally been performed by juniors, to establish the extent to which they have disappeared because of new technology, and to see what occupations can be adapted to young people.  Our industrial relations policy will deliver what world-wide experience shows is crucial to the provision of increased job opportunities - namely, a wage-fixing System which is flexible, and responsive not only to the state of the national economy but equally to the economic circumstances of individual industries and enterprises.  These initiatives are particularly important in the light of the finding by the OECD that as the economy recovers from recession, employment growth will be in areas which will not favor young people.  In its Occupational Training Policy, the Coalition proposes a retraining program to update and upgrade the skills of the unemployed, and so make them more attractive to the modem requirements of employers.  The Coalition will establish a new Occupational Training Service to oversee all occupational training and remedial programs, including a major upgrading of the Commonwealth Employment Service based on the Job Bank.  This philosophy of recurrent education faces up to the fact that many Australians - and certainly the vast majority of poorly skilled ones - will need to update their skills perhaps several limes during their working lives in order to keep pace with structural changes in employment.  The entire employment and training resources of the Commonwealth will be redirected towards occupational and remedial training. Subsidized employment merely for the purpose of removing people from unemployment statistics is out. Make-work programs with little or no training component will not be continued - though those currently taking part in them will be picked up by new training programs.  The Community Employment Program will not be continued in its present form. Too many CEP projects are failing to lift the level of skills or employability of those participating. The result is that when the CEP project ends, people go straight back on to unemployment benefits. This is disheartening for the individual, a waste of Australia's human resources, and poor use of the tax-payer's money.  A new program, to be known as Work-prep, will be introduced to provide remedial training to the most disadvantaged unemployed aged under 30. This will be designed to improve young people's reading and writing skills, increase their motivation, and provide work experience and competence of a kind which will improve the individual's chance of gaining stable employment.  In addition, we will establish an experimental program to enable people to perform voluntary work while on unemployment benefit. Local authorities will be permitted to provide work on casual award rates equivalent to the current rate of unemployment benefit plus a supplement of $35 a week. This will aid the transition of unemployed people from part-time to full-time employment, while at the same lime providing better social and economic benefits from the social welfare funds involved.  In tandem with our industrial relations policy, especially its provisions for much greater recognition of part-time work, the new Liberal initiatives in employment and training will provide a comprehensive strategy for getting people into jobs - and providing them with the skills and assistance that will keep them there.  HEALTH CARE.  Liberal Health Policy will build a better health care system by ironing out the faults in Medicare and building on the strengths of a universal health care System.  Medicare is discouraging self provision. It increases the proportion of health funding from the taxpayer and removes disincentives to overuse of services,  With fewer private dollars in the System and the need for budgetary restraint, bureaucratic controls have been tightened without regard for the patient  Under Labor, confrontation in hospitals and attacks on the medical profession and ever lengthening queues for surgery and specialist services have become a feature of today's health services.  Labor's 35 day rule, in combination with the Government's strangulation of private nursing homes, has imposed needless suffering on the acutely ill. It is not part of the Australian way of life to put sick people on the streets with nowhere to go.  Our health policy will assure comprehensive cover and will restore consumer choice; encourage private and voluntary effort; decentralize administration; and contain costs through incentive, not direction.  We will maintain a safety net of universal health insurance but will remove those aspects of Medicare that are harmful to the interests of patients, health care workers or the public or lead in the direction of nationalized health. Changes will be phased in carefully to emphasize consumer benefits and avoid confusion and disruption. High priority will be given to removing the problems faced by the long term or chronically sick and the elderly. We will implement our policy in three phases.  We will improve private insurance services by restoring stability and creating more genuine competition including permitting "gap" insurance and restoring one-stop shopping by allowing private insurers to act as agents for Medicare.  Insurers will be encouraged to include optional packages, to inhibit unnecessary use of services, reduce costs and reduce premiums. For example contributors could agree to meet an agreed amount of costs before making a claim or agree to pay a set percentage for each service.  Medibank will be converted into an independent cooperative owned by its contributors.  We will improve the hospital system by relaxing the 35 day rule and devising ways of meeting the needs of the long-term sick without causing financial hardship and distress. Restoring the $80m hospital reinsurance subsidy will enable private insurance to provide more effectively for those with long term illness.  We will end the attack on doctors with the removal of unnecessary provisions which give the Federal Minister control over con-tracts with public hospitals. Bulk billing which makes doctors the servant of the Government, will be limited to patients with PHB cards, Health Care Cards or other confessional entitlements.  In the second phase of our policy as early as possible in the life of the first Parliament, we will widen consumer choice by allowing those currently paying the Medicare levy to opt out if they have taken out a private package at a minimum prescribed level.  The size of the levy for those choosing to remain with Medicare will be tapered for low income earners.  Free public hospital care will be limited to holders of the PHB card or Health Care Card and other welfare beneficiaries unless State Governments choose to spend some of their own resources on it.  In the third phase, we will take steps to improve choice by encouraging a variety of forms of health cover such as establishing Health Maintenance Organizations which sign up contributors and meet all their health care requirements including preventive care; by promoting other competitive procedures such as "Preferred Provider" Schemes where lower premiums are offered in return for agreement to use certain doctors and hospitals; and by investigating a voucher scheme for those in receipt of benefits so they  can use the benefits towards private schemes if they wish.  In co-operation with the States we will seek a more decentralized, efficient system with local community input and greater responsibility for hospitals and doctors rather than bureaucrats.  SOCIAL SECURITY.  In keeping with the approach that we have adopted in many other areas, Liberal policy in the area of social security will be to encourage people to provide for themselves as much as possible- hence our opposition to measures such as Labor's tax on lump sum superannuating.  We will maintain the present supporting benefits in the social welfare area with a commitment to maintain income tested benefits and pensions on the presently indexed basis. Veterans and their dependants, families in crisis, the disabled and supporting parents will continue to receive special assistance.  We support the present Senate inquiry into retirement incomes as part of a need for a total comprehensive review of the income support system. Our general approach to a reform of the social welfare system incorporates the following principles:  • reduce the disincentives and impediments to people providing for themselves.  • simplify procedures so that people have to deal with one government department rather than both Taxation and Social Security.  • encourage the widest possible and most flexible employee superannuating schemes.  • increase support for voluntary agencies and for increased Federal-State cooperation in the provision of welfare services.  • ensure that the disabled are as fully integrated into the community as possible.  • make the whole system of social security more straightforward and simple.  DEREGULATION AND PRIVATIZATION.  On return to government the Liberal Party will take urgent steps to tackle the major problems of reducing the burden of regulation in Australia. We have an across the board approach to cutting red tape. It includes government regulation of business, regulatory schemes and programs, by laws and other regulatory issues. Liberal aims are:  • to maximize competition and minimize government intervention while safeguarding consumer interests.  • to achieve positive deregulation.  • to secure a more efficient process of making, reviewing and scrapping  regulations. We will achieve these aims by:  • ensuring regulations are only introduced if there is clear evidence their potential benefits exceed their potential costs.  • giving preference to self-regulation.  • concentrating on ensuring regulations are efficient and follow a rigorous, cost-benefit analysis and public consultation.  • ensuring there are effective and regular review mechanisms for existing regulations and proper scrutiny of new proposals.  • working with industry and State Governments in removing duplication and achieving uniformity of standards.  For the first time in this nation's history a coherent program for cutting red tape in the federal tier of government has been developed. The details of that program are contained in the Liberal "Regulation and Reform of the Regulatory Process Policy".  Pruning back the mass of regulations is one part of making government the servant of the people. Another vital part is reducing the size of government.  When governments regulate they are doing so to alter the way people behave and to change the uses to which resources are devoted. Public ownership is a form of regulation, since it has both these effects.  Australia's investment in state-owned enterprises runs to billions of taxpayers' dollars. We want to ensure that this vast investment is managed productively and wisely. We want to ensure that the taxpayer is getting the full value for his money.  At the moment Australians are not getting the maximum value from all State enterprises. This is not to say that people employed in public enterprises are not working diligently and responsibly. But they are often bound by rigid rules, regulations and precedents which are a barrier to efficiency.  The private sector, and privately owned companies, are equipped to do this Successful companies offer consumers the best value for money. That is how they stay in business.  In the public sector, on the other hand, a failing company which is not meeting consumers' needs is likely to be rewarded, not penalized They are frequently propped up with taxpayers' funds. No one asks the tax-payers whether they approve of this.  Liberals believe that in some carefully selected instances Australians will receive a better service as consumers, and the community's resources will be better utilized, if ownership is returned to the private sector.  Transport is a good example. While the Federal Government should have some involvement in the area of transport (for example, building the Alice Springs-Darwin railway line as part of a commitment to Northern Development), both the consumer and the taxpayer would be better served by a withdrawal by the government from certain activities. Thus, the Coalition would sell the Australian National Line. With appropriate care being given to the transition from public to private hands, this would result in cheaper shipping services and relief to the taxpayer.  We will move to terminate the two airline agreement and make TAA a private company. This deregulation will be of significant benefit to air travelers and to the economy.  We have a wider program of privatization. As well as selling ANL and TAA a Liberal Government will place the Australian Industry Development Corporation, Medibank Private and the Housing Loans Insurance Corporation in the private sector.  The Liberal Direction.  When you look at the history of our country, one thing stands out - Australia was built by the individual efforts of people, not by Big Governments or Big Unions or Big Business. They played their part but the real Australian success story is the story of men and women who struggled hard against the odds, who got things going and who provided a better life for their children. Our country was built by people who are sometimes referred to as "ordinary Australians' but who are in tact the real heart of our nation.  Today our future lies in the hands of the same sorts of Australians. If they get the chance to go ahead then Australia can really go ahead. And yet these same Australians are not getting the chance. Hard work and saving is not rewarded as it should be and Australia is losing as a nation.  In a few years our country will celebrate its two-hundredth birthday. But we are concerned about the kind of Australia we could be living in. That is what the election on the first of December is all about - not just which political party will govern Australia but what life will be like for the Australian family in the years ahead  When did you last hear Labor talk about the small business person; about the person who runs his own shop, or the woman who manages a business, or about a farmer, or about the worker who wants to better him-self, or about the migrant family trying to beat the odds; or about women trying to cope with the pressures of both having a job and raising a family?  Our Liberal policies will encourage men and women who want to have a go, who want to achieve a better life for themselves and their families. That is what the Liberal Party believes in and that is what Australia is all about.