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.