‘Incentivation' promise

Press, 26 June 1987, Page 8

‘Incentivation' promise

NZPA Sydney The Australian Opposition leader, John Howard, promised to bring incentive and efficiency into the workforce and economy when he formally launched the Liberal Party’s campaign for the July 11 election. Mr Howard, who, has coined the word “incentivation” to encapsulate his policy, repeated Liberal promises of lower taxation, smaller government and greater individual freedom.

“It is the only sure way to restore Australia’s economic prosperity and the living standards of you and your family,” Mr Howard said. He said a Liberal Government would introduce tax concessions for employees to buy shares in their companies and would curb excessive trade union powers. In contrast to Labour’s glossy ticket-only campaign launch on Tuesday at the Sydney Opera House, the Liberals opted for a traditional political rally and invited the pub-

lie to attend at Sydney’s historic State Theatre. A crowd of about 100 noisy demonstrators, who claimed the Liberals’ housing' policy would cause homelessness, were barred from the auditorium. An environmentalist was also ejected from the threatre after trying to interrupt Mr Howard’s speech.

Mr Howard said Australia’s industrial-relations system was too rigid and trade union power excessive, but he said he would have no difficulty working with mainstream union movement leaders despite their political leanings if he was elected to government

He proposed replacing centralised wage fixing with voluntary work place agreements and,said the Liberals would hold a referendum to enshrine the right jof Australians to choose whether or not to join a union.

The Liberals would strengthen the secondary boycott provisions of the Trade Practices Act, under which Australian employers have success-

fully prosecuted unions. A Liberal Government would cut top marginal income tax rates from 49 per cent to 38 per cent and end Labour’s capital gains and fringe benefit taxes. ’ Mr Howard said lower taxes would provide greater incentive for everyone to work harder.

“That’s what, this election is all about, lower tax and the incentive to achieve a better and more prosperous life.”

The Liberals have been criticised by the Prime Minister, Mr Bob Hawke, and Treasurer, Mr Paul Keating, who questioned how Mr Howard would fund his programme of sAust7.3 billion (6NZ8.9 billion) of tax cuts. Mr Howard has accepted personal responsibility for double counting sAusts4o million (5NZ655 million) worth of savings in the programme. As personal attacks intensified in the election campaign this week, Mr Howard reminded voters of Mr Keating’s embarrassing late lodgment of his 1985 tax return.