MENZIES IS CONFIDENT

Press, Volume C, Issue 29517, 19 May 1961, Page 19

MENZIES IS CONFIDENT

No Recession Forecast

(N 7. Press Assn.—Copyright) CANBERRA. May 18 The Prime Minister, Mr Menzies refused, in the House of Representatives • ■-•frday. to say whether the Government would consider increasing unemployment be-efits. The increase was ssigby the Leader of the Oonosition, Mr Arthur Calwell. who said the Governcent's policy of promoting ''fiation would inevitably '.?ad to a rise in unemployment. Mr Menzies replied that • e question involved a matter of Government policy, and therefore he did not propose to say anything about Mr Menzies said that the degression of 1929-30 could never happen in Australia tod-iy. Pay no attention to those r ho decry ‘fluctuating policies’.” he said. “Just as rjr real policy must be concant, so must its applica'on be flexible and move with the circumstances. We sve made this cleor. and we have acted accordingly.” Mr Menzies said that nob dy taking a balanced view of Australia’s present economy or future prospects could be a pessimist. Anti-inflationary policies were necessary to deal with ‘-e inflationary boom of 1950. Mr Menzies added: "If we »"e going to become a great exporting industrial nation we must realise that the essential foundation is a great ar.fi faithful home market. “It is of the first order of "ational importance that Australian manufacturing ’ .ould become international ' ■ that it sells to the rest of 'he world, particularly those hundreds of millions of people who are nearer to us ' ’an to any other modern in'u«trial country. Let us look forward to ‘ .e time, which is not too '■: distant, when there will be such an expansion of product ion—due to the sunport r ’ the home market—that our will exoand into ' 1 world markets,” he said. "This will render Austra- ■ v if not immune, at least v-shakable by the economic ■rc.dents of the world. ‘With the backing of our (tn people the day will "vne when a future Prime '•I r ster will say that Aus“'ai.a's economy, not only •rustically, but internationy. is as sound as any in t :e world,” he said.