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STATEMENT 3Y THE PRIME MINISTER (MR. MENZIES) IN THE HOUSE
Fix this textOF REPRESENTATIVES, ON TUESDAY, 27TH SEPTEMBER, 1955.
Fix this textSTATEMENT ON THE ECONOMY
Fix this textOn August 24, my colleague, the Treasurer, delivered his
Fix this textBudget Speech. The prime purpose of a Budget Speech is the outlining
Fix this textof the Government's revenue and expenditure proposals and the announcing
Fix this textof any new proposals in either field.
Fix this textThis last Budget was also accompanied by a careful analysis
Fix this textof the present state of the economy; an analysis which deserves much
Fix this textcareful study. When the Budget rejected proposals for reduced taxation
Fix this textor allowances, it did so against the background of a state of prosperity
Fix this textin which can be discerned certain tendencies of a dangerous kind. In
Fix this textbrief, it was pointed out thÄ…t although our prosperity is high and real
Fix this textand, indeed, unprecedented, ce^ain factors are visible which can cause
Fix this textus great difficulty unless they are brought under control.
Fix this textIn the course of his speech, my colleague, in the clearest
Fix this textterms, directed attention to our shortages of labour, rising wages and
Fix this textother cost elements, the substantial deficit in our external trade, a
Fix this textserious running down in our overseas exchange reserves, a much too high
Fix this textlevel in the demand for imports; a demand due to the fact that internal
Fix this textdemand fpr goods and resources in Australia is far greater than available
Fix this textlocal supplies, and the excess demand is thus spilling over into the
Fix this textfield of imports. He drew attention to the existence of a boom, chiefly
Fix this textin consumer spending and in private investment. He pointed out the impact
Fix this textupon this boom of an over-expansion of credit on the part of the banking
Fix this textsystem and the rapid growth of hire purchase finance.
Fix this textThese problems have not fallen in magnitude since the Budget.
Fix this textOn the contrary, the pressures in respect of most have grown even in the
Fix this textlast few weeks. Above all, the wool sales have opened and there has been
Fix this texta substantial fall in the price of wool. This cannot be ignored. There<-
Fix this textfore, before he proceeded overseas, my colleague had extensive talks with
Fix this textthe Cabinet, and I, myself, indicated to him certain steps which I thought
Fix this textought to be taken notwithstanding his absence abroad. He entirely agreed.
Fix this textIt will, I think, assist the House and the people best, and
Fix this textadd to general understanding, if I first of all indicate the aspects of
Fix this textthe economy with which I propose to deal in this statement and then
Fix this textindicate the programme of action in the case of each. But even before
Fix this textdoing this, it seems of vital importance to establish some balance and
Fix this textproportion in our own minds. Whenever there are economic problems of
Fix this textcritical importance to be dealt with, the first views to be heard are
Fix this textall too frequently extreme and unthinking views. Thus in a time of
Fix this textundoubted prosperity like the present, any proposals to guard against
Fix this textallowing that prosperity to be undermined will be greeted with instant
Fix this texthostility by some people, on the simple view that prosperity can always
Fix this textbe allowed to look after itself — ‘Let's eat, drink and be merry, for
Fix this textperhaps tomorrow we won't die'·
Fix this textIt's easy and takes two shakes of a lamb's tail!
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