BUDGET A TEST FOR BOTH GOVERNMENT AND OPPOSITION

by Eric D. Butler
There is no doubt that the Whitlam Government is facing a major trial with its coming Budget, to be presented by Mr. W. Hayden on August 19th. But generally overlooked is the fact that the Fraser-Anthony Opposition is also on trial. Addressing the State Council of the Victorian Liberal Party on July 26th, Mr. Malcolm Fraser said that the Liberal Party did not want to govern because of Labor's ills. "We want to govern because people understand us," he said. After referring to the Whitlam Government's disastrous achievements, Mr. Fraser said "We probably would not be in this mess if the government was not trying to create a Utopia through massive government spending." Mr. Fraser overlooks the fact that the same type of "mess" varying only in degree, exists in every other Western nation, as well as in Japan.

Only a short time ago I was depressed by Mr. Fraser's advocacy that the Whitlam Government should send its experts to the U.S.A. to learn how inflation had been solved. A temporary reduction in the American inflation rate was achieved by massive unemployment and nation-wide economic disasters. Now comes the news, which I have been predicting, that the American inflation rate is rising again and that the Ford Administration will be hard pushed to keep its deficit budget down to $60,000 million. It will almost certainly be bigger, proportionately, than the deficit budget Mr. Hayden will be announcing on August 19th.

No one has been more critical of the Whitlam Government than I, but I must warn that unless Mr. Fraser and his colleagues can reverse the inflationary financial policies which have been eroding Western Civilisation for over half a century they are doomed to preside over disasters even greater than those now being suffered by Australians.

Mr. Fraser finished his address to the Victorian Liberals with the ringing challenge. "We can establish Australia as a leader of all the federalist countries in the world. The call is freedom. Let us as Liberals be heard as its champions." Mr. Fraser must be aware that the destruction of the Federal system of Government in Australia did not begin with Mr. Whitlam that he and his colleagues when in office furthered the centralisation of power, which Mr. Whitlam has used to intensify the process. If the Federal system of Government is to be regenerated by Liberal-Country Party Government, then Mr. Fraser and Mr. Anthony must clearly outline to the Australian people how they propose to reverse constructively the basic cause of most centralisation: progressive inflation. Attempts to deal with effects while ignoring causes must lead to a state of revolution.

Mr. Fraser and his colleagues could make an excellent start by using the budget debate to expose the alleged necessity for a harsh budget. The suggestion has been carefully fostered that the way to economic health is with a stiff dose of "bitter medicine." The truth is that the free enterprise system of production in Australia could, if freed from all artificial obstructions, produce sufficient for the legitimate requirements of all Australians. No one has to suffer any hardship to improve the production system. What is required is a change in financial policy to ensure that both employers and employees have the necessary incentive to co-operate to increase that type of production indicated by consumers spending their own money "votes" in their own way.

A free enterprise economy, served by a realistic financial policy, would have no difficulty in employing all those at present wasting their time on the Federal Government's numerous payrolls. Unless the Opposition steers clear of the "tough budget" theme, they will be assisting the Whitlam strategy for survival.

Mr. Whitlam and his team of professional propagandists have been attempting to condition Australians to accept the alleged necessity of a "tough", but "responsible" Budget. This is claimed to be the only way to deal with inflation. Mr. Whitlam threatens that he will have no patience with knockers and whingers" when the Budget is presented. While many will appreciate the spectacle of politicians and bureaucrats flying economy class, and applaud the curtailment of massive expenditure on a wide range of incredible activities, the hard fact remains that an increase in indirect taxation, higher charges for Government "services", coupled with a new credit squeeze, must inevitably increase business bankruptcies and swell the unemployment figures. Small income tax reductions will have little effect on the overall situation.

The League of Rights has over many years warned about the disaster course being travelled with increasing momentum. I notice that the League's critics have become rather silent. Not even the most vicious of them can blame the League of Rights for the situation, which the League predicted. The Whitlam Government's tactics are quite clear: Bring down a "responsible" Budget, feature the major (temporary) cut backs in Federal Government activities, and thus head off the threat of the Opposition denying Supply and forcing Federal Elections before Christmas.

The Government knows that its Budget is going to be politically most unpopular. The great majority, including Labor supporters are going to suffer. But Whitlam hopes that if an early election can be avoided, time will enable him to recover lost political ground. But this is impossible while the economic and social situation deteriorates still further. Which leaves the question of what the Federal Liberal and Country Parties propose to do.

The time has come for them to spell out clearly their anti-inflation and anti-centralist programme. And having spelt out their programme they should make it clear that they want the Australian electors to vote on it at the earliest possible opportunity. They should follow the lead of Queensland Premier Bjelke-Petersen who once again talked sense when, in speaking at the launching of the National Party in Victoria on July 24th, said that the coming Federal Budget should not be tough.
"A severe Federal Budget would be entirely wrong, unjust and unfair to the ordinary man", he said. "Businesses can absorb some increased costs through tax concessions, but not the ordinary man."

The Queensland Premier is right. The "Petersen Plan" is designed to tackle the inflation problem right at its source by reducing financial costs through the abolition of the Sales Tax, and by further increasing consumer purchasing power through consumer price discounts. These do not increase financial costs. The Federal Opposition should consult immediately with the Queensland Premier on the strategy they should adopt for the coming Budget debates. They would get much more realistic advice than what they are receiving at present. But if they fail to be constructive, they will have helped to sow the seeds of the disasters they suffer when they do come to office. With the 1975 Federal Budget, we have come to yet another great watershed in Australian history.

THE HELSINKI SURRENDER

The Helsinki Summit meeting, officially described as the Conference on Security and Co-operation in Europe, was arranged for the purpose of formally confirming the present political status quo in Europe. This means an acknowledgement of the right of the Soviet Union to enslave permanently the peoples of Eastern Europe.

At the Potsdam Conference of 30 years ago, even Stalin agreed that there should be no permanent settlement in Eastern Europe until free elections had been held. Not that Stalin ever intended that such elections should ever be held. Now Dr, Kissinger, the man who charges that the great Russian hero Solzhenitsyn is a threat to peace because he denounces the fraud of detente, has led President Ford to accept the Breznev doctrine.

This doctrine, first stated and applied in 1968 when there was widespread unrest in Czhechoslovakia, insists that it is the responsibility of the international Communism movement to make certain that no Communist Government is ever overthrown by the people of any country and that the Soviet has a "moral" obligation to intervene militarily if necessary to save a threatened Communist Government. This was done in Czhechoslovakia in 1968.

While the peoples of the non-Communist world are being lulled into a sense of false security by Dr. Kissinger and his international financial backers, the Soviet imperialists do not bother to disguise their ultimate intentions. The Central Committee of the Communist Party of the Soviet Union stated in its address to the peoples of the world on December 22, 1972: "The world-wide victory of the new social system is forged in the fraternal mutual assistance and comradely co-operation of the socialist states. The prototype of the future international association of all peoples of the planet is being molded today" (World Marxism Review, February, 1973).
The meaning of this statement is that all States controlled by Communists are co-operating to promote Communism in all countries, until eventually the peoples of the whole world are under Communism.

While President Ford and Dr. Kissinger were preparing to leave America for the Helsinki surrender, Solzhenitsyn was telling the American people the truth about the Soviet criminals. At his New York meeting he told his listeners "I have come to you as a witness to what it's like there in the dragon's belly....If they bury us alive in the ground, please do not send the shovel. Please do not send them up-to-date earth moving equipment."

The exiled Russian was again warning against the policy of providing the Soviet with Western technological and industrial equipment. As shown by Dr. Antony Sutton in his historic book, National Suicide the West has provided the economic blood transfusions to keep the Soviet monster alive.

The treachery at Helsinki will of course, be applauded by the Rockefellers and other Wall Street groups. But the spirit of the enslaved peoples will continue to live on. It is the duty of every free person everywhere to make it clear to the victims of Communism that he or she does not accept the betrayal at Helsinki or anywhere else. It would be instructive to hear from Mr. Andrew Peacock, Shadow Minister for External Affairs in the Federal Opposition, on the Helsinki treachery.

RHODESIAN REALITIES

The enemies of Rhodesia have been regularly predicting doom for this little nation over the past 11 years. Back in 1966 Prime Minister Harold Wilson was going to bring the Rhodesians to their knees in a few months with the use of sanctions. The ultimate result was a greatly improved Rhodesian economy. Then came the Communist-backed terrorist campaigns. These have failed to shake the Rhodesians, while recently Prime Minister Ian Smith has made it clear that a much more aggressive attitude is going to be adopted against the terrorists.

Upon his return from Rhodesia in May Mr. Eric Butler gave a much more realistic assessment of the situation than that being given by the mass media. He said that Prime Minister Whitlam did not know what he was talking about when he said at the Commonwealth Conference in Jamaica that Rhodesia could be defeated by financing Mozambique to close its ports to Rhodesia. Mr. Butler said privately what is now being admitted openly in some press reports: The proposed strategy for intensifying sanctions against Rhodesia would affect neighbouring African States much more than it would affect Rhodesia.

Although the border between Rhodesia and Zambia was officially closed two years ago, Zaire is sending copper and zinc by rail through Zambia and Rhodesia to the Mozambique port of Beira. The trains return through Rhodesia with imports picked up in Beira, as well as food and other items from Rhodesia itself. Zambia copper is also shipped out through Rhodesia. Rhodesia and South Africa are both suppliers of food for northern African States, all of whom would suffer if effective sanctions were imposed against Rhodesia.

Our prediction is that Rhodesia will be still surviving long after Mr. Gough Whitlam and his fellow Socialist Prime Ministers have been swept away by outraged electors. Rhodesia's gallant stand will go down in history as one of the great epics of a period when Civilisation was in retreat everywhere.

DR. JIM CAIRNS

BIG LEAGUE NATIONAL WEEKEND