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ARRANGEMENTS FOR SINGAPORE, TAIWAN, HONG KONG AND KOREA BY FREEZING PREFERENTIAL TARIFFS UNTIL GENERAL TARIFFS COME DOWN TO PREFERENTIAL LEVELS.
LEGISLATION TO GUARANTEE TIMBER RESOURCES FOR LARGE FORESTRY PROJECTS.
TAX DEDUCTIBILITY OVER 10 YEARS FOR ALL ENVIRONMENTAL IMPACT STUDIES, WHETHER A PROJECT GOES AHEAD OR NOT. ASSISTANCE TO EMPLOYERS TO TRY TO ENSURE THAT LABOUR SKILLS ARE NOT LOST BECAUSE OF THE RECESSION.
EXPANSION AND INCREASED FLEXIBILITY OF THE GOVERNMENT'S EXPORT FACILITATION SCHEME (WHICH PROVIDES INCENTIVES TO COMPANIES TO EXPORT).
REFOCUSSING OF AUSTRADE'S EFFORTS ON THE ASIA-PACIFIC AND TRANSFER OF RESPONSIBILITY FOR AUSTRADE TO THE MINISTER FOR OVERSEAS TRADE AND DEVELOPMENT FROM 1 SEPTEMBER.
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THE TOTAL PACKAGE IS TO COST AUSTRALIAN DOLLARS 33 MILLION IN 1990/91 AND AUSTRALIAN DOLLARS 446 MILLION IN 1991/92, RISING TO AUSTRALIAN DOLLARS 1.2 BILLION IN 1993/94. ACCORDING TO THE TREASURER, AUSTRALIAN DOLLARS 123 MILLION OF NEW SPENDING ITEMS IN 1991/92 WILL BE OFFSET BY SPENDING CUTS IN NEXT AUGUST'S BUDGET.
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INTRODUCING THE NEW MEASURES, HAWKE EXPLAINED THAT THEY WERE NOT INTENDED TO TACKLE THE IMMEDIATE PROBLEMS OF THE RECESSION, WHICH HE CONCEDED WAS DEEPER THAN EXPECTED. UNEMPLOYMENT WAS EXPECTED TO RISE FURTHER. HE ADMITTED THAT SOME OF THE PAIN COULD HAVE BEEN AVOIDED IF HIS GOVERNMENT HAD ACTED EARLIER TO EASE MONETARY POLICY AND REGRETTED THE HURT AND LOSS OF JOBS. BUT HE PREDICTED THAT AUSTRALIA WOULD EMERGE FROM THE RECESSION IN THE SECOND HALF OF THIS YEAR WITH LOW INFLATION, LOWER INTEREST RATES AND A MORE PRODUCTIVE AND COMPETITIVE ECONOMY. LOW INFLATION WAS NOW THE CRUX OF ECONOMIC POLICY.
REACTIONS
5. THE STATEMENT HAS GENERALLY BEEN GREETED AS A WELCOME IF INSUFFICIENT STEP FORWARD. THE FEDERAL OPPOSITION LEADER WELCOMED MANY OF THE NEW MEASURES BUT ACCUSED THE GOVERNMENT OF FAILING TO ADDRESS THE KEY STRUCTURAL PROBLEMS OF THE ECONOMY, CLAIMING THAT AREAS SUCH AS WATERFRONT, TRANSPORTATION, TELECOMMUNICATIONS, PUBLIC SECTOR AND LABOUR REFORM HAD BEEN EFFECTIVELY VETOED BY THE UNIONS. THE BUSINESS COUNCIL OF AUSTRALIA SAID THE STATEMENT WAS DISAPPOINTING AND THAT AN IMPORTANT OPPORTUNITY TO ACCELERATE THE PACE OF STRUCTURAL REFORM HAD BEEN LOST.
6.
PRESS COVERAGE HAS BEEN WIDE WITH THE MAJOR PAPERS DEVOTING SEVERAL ENTIRE PAGES TO THE ANNOUNCEMENT. THE AUSTRALIAN FINANCIAL REVIEW DESCRIBED THE PACKAGE AS QUOTE MORE A MODEST STEP FORWARD THAN THE REFORMIST LEAP NECESSARY TO TURN AROUND THE RELENTLESS PROCESS OF INDUSTRIAL DECAY WHICH THREATENS THE LIVING STANDARDS OF AUSTRALIANS UNQUOTE. WHILE THE GOVERNMENT COULD TAKE CREDIT FOR THE CONSIDERABLE GAINS ALREADY MADE IN THE LONG HAUL TOWARDS REFORM, THE ANNOUNCEMENT SHOWED DISAPPOINTING SIGNS THAT ITS REVOLUTIONARY ZEAL FOR THE TASK WAS WANING. THE AUSTRALIAN SAID THE STATEMENT WAS QUOTE COURAGEOUS AND VISIONARY AS FAR AS IT GOES UNQUOTE BUT DID NOT GO FAR ENOUGH. THE SYDNEY MORNING HERALD SAID THAT FOR ALL ITS SHORTCOMINGS THE STATEMENT WAS AN IMPORTANT STEP ALONG THE PATH OF MICRO-ECONOMIC REFORM AND A MORE COURAGEOUS DOCUMENT THAN AUSTRALIANS ONCE WOULD HAVE EXPECTED FROM THEIR LEADERS.
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