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Helen Coonan, Senator for New South Wales

First Speech - 16/10/1996

Thank you, Madam President. I rise this afternoon, as the last new senator of the class of 1 July 1996, to make my first speech. In so doing I am conscious that our terms as senators will expire in year 2002, and that we will have had the privilege and enormous responsibility, with others, of defining and shaping Australia's direction across the dawn of the new millennium. I have listened with interest and admiration to the speeches of my colleagues and have been impressed by the diversity of perspective, talent and unique life experience which each one brings to this place. I have no immediate predecessor to acknowledge. In the 1996 election my seat was the only numerical change in the composition of the Senate, being a gain for the coalition. Until 1990 my seat was held by a distinguished former senator Chris Puplick, currently President of the New South Wales Anti-Discrimination Board and Chairman of the Privacy Committee. In these capacities he continues to make a significant contribution to public life.

I am immensely proud to represent the people of New South Wales-the premier state. In May 1788 in Sydney, New South Wales, Governor Arthur Phillip laid the foundation stone for the first Government House, the seat of colonial power in the Pacific. This profoundly significant act has different meanings to different Australians. To some it marked the birthplace of a nation; to others it meant invasion. For many, it means a turning point in history and untold opportunities to build the nation together. It is an opportunity given to me by the people of New South Wales and I will not waste it.

I have no doubt that as the present custodians each of us wish to leave our community a better place than we found it. As I see it, the most compelling challenge facing us as a nation today is how to reconcile the need for fiscal responsibility with the provision of a meaningful and adequate safety net for the genuinely needy in an era of rapid technological and social change. To borrow the words of US economist, Arthur M. Okun from his essay `Equality and Efficiency: The Big Trade-off', the dilemma is how `to put some rationality into equality and some humanity into efficiency'.

Perhaps at no time in Australia's history has the need to balance these competing notions been so important or so compelling. To respond to this, we need to step back from the siren calls coming from simplistic feelings of fear, prejudice and misunderstanding. What Australians demand of us as legislators and what the community is entitled to have is an examination of the concept of what the community aims to be and wants to pass on to our children. In a fair society, those aims find expression in access to minimum standards of education, employment, health, housing and a decent standard of living for its citizens.

The problems that face Australia today and over the next decade are intertwined. We need to take a holistic picture of the Australian community of the future. What education do citizens need? What level of education can we afford?

What jobs will be available? What will be the requirements of a physically and socially healthy community? Inappropriate solutions for education now will necessarily aggravate the problems of lack of employment opportunities and lack of employment impacts on community health. It is only by devising appropriate solutions to all these problems that we can achieve a fair society.

Let us start with education. Are our policies well designed to ensure that the students of today are getting an education that will best enable them to obtain employment in areas where jobs will be available? In order to ensure that we train students appropriately, it is necessary to determine the likely employment picture of the future. The future of work and how we deal with unemployment and the unemployed are critical to our vision of the future--about the place we want Australia to be. Unemployment, lack of security, declining living standards and pressure on resources profoundly affect the balance of equity and efficiency. In addition, the social cost of unemployment on families and relationships is often overlooked or hidden. It affects not only individuals but all too often third parties who are the victims of crime and drug abuse born out of hopelessness and despair.

Profound shifts in employment patterns and in traditional modes of work not only impact on labour market policy but pose many questions for any forward looking job strategy. What will work mean at the close of the century? What sort of jobs will be available in the year 2020? Who will do the available work? What hours will they do it in? Will there be a physical workplace to go to? What happens to those who do not have any work? On these answers depend future strategies for appropriate education, training, employment, urban planning, infrastructure and industry policy.

Not only does Australia currently have close to one million people unsuccessfully seeking paid employment but, as well, unpublished ABS figures show that almost a quarter of those in employment work in casual jobs. One in four casual employees would undertake more work if it were available. At the other end of the spectrum, those with full-time jobs are working longer hours than ever before and those having two jobs to make ends meet have significantly increased. In his recent series in the Australian Financial Review, `Revolution in the Workplace', Stephen Long describes the great divide in the Australian workplace as `between the overworked and the out of work; between the well paid and the poorly paid; between career jobs and fringe jobs'.

The composition of the work force has also changed dramatically. Staying in one job for the whole of one's working life is no longer a reality. In its final report in May 1996 the Commission for the Future of Work identified the increase of women in the work force from 51 per cent to 62 per cent in the last 15 years as providing the most significant change in work force participation. The increase, however, is predominantly in part-time or casual work, which no doubt reflects the relentless need of most women to juggle work and family responsibilities as much as it reveals the type of available work.

The real brunt of unemployment, however, falls unequally on the young. Figures published by the commission show that almost half of unemployed people are under 30 and young people aged between 20 and 24 years of age comprise the largest group of long-term unemployed. Of most concern in sharing the burden of unemployment equitably is the long-term rise in Australian families that simply have no `breadwinner' at all.

A recent National Institute of Labour Studies report has predicted that the best official unemployment figure to expect by the year 2000 is 7.2 per cent. Downsizing, restructuring and outsourcing have eliminated thousands of jobs. If these trends continue, there are profound implications not only for wage policy, taxation, superannuation and welfare, but for health, education and our ability to deliver equity goals. Even if it were possible to achieve a more equitable distribution of jobs by making greater efficiencies, that will only affect the pool of work currently available. To be able to provide appropriate education, employment and health care for future Australians and help for the genuinely disadvantaged, it is essential that we identify and provide opportunities for growth and the creation of new jobs.

It is right, in my view, to emphasise the importance of labour market flexibility and productivity related reforms. There is also much to be said for ways of organising the workplace, including multiskilling, job sharing, perhaps self-managing units, work units tied to productivity outcomes, job pools and programs to directly assist matching of skills to available jobs for the unemployed.

Concerns that deregulation of the labour market might result in increased productivity but lower wages can be met by encouraging growth of those businesses capable of creating a large volume of high wage and high satisfaction jobs. The 1996 OECD report `Technology, Productivity and Job Creation' identifies knowledge, especially technological knowledge, in industries such as telecommunications,pharmaceuticals, new materials, environmental technologies, computers, education and software as the main source of economic growth and job creation in member countries.

If finding better ways to do things is the source of future jobs and higher living standards, what sort of education and training will best equip the work force of the future to understand and use knowledge? One thing is certain, and that is that the better educated will have an advantage in accessing the new world of electronic commerce. This may lead to widening inequalities between the skilled and unskilled, unless ways are found to train workers in the new technologies and to remove barriers to entry to new jobs. However, there are new and exciting possibilities here to provide, for example, electronic access to teachers, trainers, libraries and programs to meet needs of those in rural and remote locations or for those who would otherwise have no access to such training.

Creating new demand for new products inevitably creates the need for more highly skilled and better paid workers. One only has to consider, for example, the effect of new products such as mobile phones. The Standard and Poor's Industry Profile predicts that the telecommunications industry, worth $19.3 billion in 1994, will reach $30 billion by the year 2004, with the mobile phone sector growing in excess of 50 per cent per annum. Mobile phones, which barely existed 20 years ago, now in Australia alone constitute a $1 billion industry with some 2.5 million subscribers. If this is the way forward in Australia for job creation, the policy implications go beyond making the labour and product markets more flexible. As Dr David Clark of the School of Economics, University of New South Wales, points out, job creation also depends on addressing those factors which inhibit business investment. The role for government is not only to foster
conditions for emerging markets, it is also to develop and implement strategies coordinating initiatives across a wide range of relevant policy areas including business, taxation, industry, training and employment.

As a means of job creation, Australia's trading relationship with east Asia, the fastest growing region in the world, is of critical importance. In his recent speech to the 25th Annual Conference of Economists, ANU Professor Peter Drysdale suggested that, on an international comparison, Australia is becoming less relevant in the booming Asian markets, having lost export opportunities worth $12 billion between 1985 and 1993. This cannot be allowed to continue.

The need for increased competitiveness in existing and new import markets, especially in value added so-called `elaborately transformed' manufactures and services, should not only arrest the decline but generate more high wage export manufacturing jobs.

Despite Australia's welcome commitment together with APEC trading partners to reduction of tariff protection for local industry, care will be needed to ensure our own industries are not wiped out in the process. Whilst the distorting effect of subsidies through tariffs, rebates or tax breaks are well understood, when and how to cut business welfare and by how much is a difficult balancing act. The community as a whole is affected, simply because business responds by increasing prices or by reducing investment.

The role for government in identifying and encouraging new growth opportunities is, in my view, to promote those policies which boost productivity and to provide the settings for long-term efficiency and equity. In Remaking Australia, Professor Hugh Emy described the process thus:

Infrastructure, research, knowledge production--these are the realms of government, so there is more scope for government to intervene to improve the resource base or provide the enabling conditions likely to attract and/or advantage globally competitive industries within its own territory.

A clear example is the need to provide a regulatory environment in telecommunications and the multi-media which allows competition to deliver the very best results, while protecting community safeguards and ensuring that the fruits of such competition are widespread throughout the community.

To achieve an education system that prepares a motivated work force for the type and range of available work and to enlarge the pool of available work will enable an appropriate response to the problems of those who, by reason of health, age or disadvantage, require a social safety net.

Few community needs can be as compelling or deserving of our national attention than the need for access to health care at an affordable cost. We have an ageing population. Not only that, but we are living longer than our forebears and the ratio of those working to those retired will be 40 per cent in a short 35 years. Australia spends 8.6 per cent of its GDP on health services. This is expected to rise to 10 per cent by the year 2000. Unless the health system undergoes fundamental reform it will not survive in its present form. More particularly, unless the private health insurance system, which currently meets about 12 per cent of health care costs and takes some pressure of the public health system, is overhauled, it will disintegrate. The inquiry by the Productivity Commission is timely. The questions seem to be how much of this cost can be shifted equitably to those who can afford to pay and how the costs can be contained.

Although no measure in isolation is sufficient, the principle of community rating, with everyone paying the same premium irrespective of age or state of health, results in the young and the healthy simply opting out of health insurance, leaving only high risk users, the old and the chronically ill, as a customer base. Inevitably, premiums increase to cover the increase in claims.

We need to be much more imaginative in how private health insurance is structured and underwritten. Funds must be permitted to offer innovative products, such as lifetime community rating with lower premiums for those who join young and perhaps no-claim bonuses or 100 per cent cover to eliminate the gap between benefit paid and cost to the patient. Additionally, the place of risk rated health insurance for trauma, sickness, hospital and medical gap and income cover needs to be explored rather than shut out of calculation.

Ultimately, the most effective measure to contain health costs is to maintain a healthy population. It requires a fundamental shift in attitude to devise strategies to keep people well, especially as they age and become consumers of health services. Maintaining good health for the ageing should be as much as an investment for the future as education is for the young.

There is a sense of genuine bewilderment amongst a lot of Australians that, in spite of an expenditure in the vicinity of $10.329 billion in the last decade, there has been no substantial improvement in the health, housing, education and general living conditions of Aboriginal people. This has led many to conclude that the cause is hopeless, and further expenditure at such scale is unjustified and, at a time of economic stringency, unwarranted.

Instead, Australians should conclude that the way we have been doing it is wrong. Australia was right in concluding that the conditions of indigenous Australians were shameful and that if we were to hold up our heads and face ourselves in the mirror of our consciences we had to eradicate these conditions of shame. Obviously, that needed money. Obviously, not all the money was well spent. Why? How can we do it better? Instead of giving way to strident calls of prejudice and misunderstanding, it behoves us to rectify our system for delivery of what most fair-minded Australians believe all members of the community are entitled to. Is eradication of treatable disease, provision of running water and adequate housing really too much to ask? That indigenous Australians are less well off than other Australians is incontrovertible. Socioeconomic indicators measuring the health, education, income and housing status of indigenous Australians paint a clear picture of systemic disadvantage. According to the 1994 survey of indigenous Australians, infant mortality rates are four times the rate of the total population whilst the life expectancy of males is 18 years less than the national figure and 20 years less for females.

Overall average income in 1994 was 30 per cent less than the $20,000 average of the total population. At the last national census, 40 per cent of indigenous Australians aged 15 and over earned less than $8,000 a year. Long-term unemployment of Aboriginal and Torres Strait Islander people ranges between 60 per cent and 70 per cent compared with 46 per cent of all Australians unemployed.

To continue to be proud to be Australians in the year 2000, we must confront the problems of delivery of assistance. Reconciliation will follow, in my view, as a matter of course. It may be unrealistic to expect, at least in the short term, that indigenous Australians will be able to create a sustainable wealth base from running cattle stations or other commercial or community business ventures. Certainly, there are outstanding examples of Aboriginal people's involvement in successful commercial ventures.

It will be important to long-term relations between indigenous and non-indigenous Australians that incentives are given to Aboriginal and Torres Strait Islander people to make self-determination work so that they may better help themselves. Far more important than attributing blame is the need to reassess our priorities. We all have a stake in the outcome, and in the end we are all accountable as Australians, whatever our race or origin.

The call against immigration is another manifestation of our loss of national purpose. Contrast the conditions today with the economic and social conditions which obtained at times of strong migrant inflow. Historically, Australia has been a great migrant nation greatly advantaged by the intake of skill, labour and social diversity.

One could go back to the days of the gold rushes or Queensland canegrowing, but, rather, look at the more recent past. In the 1950s, migration gave us the mighty Snowy Mountains scheme. There was a great need in those days for hundreds of thousands of unskilled workers, and a great number of such people were anxious to come to this country. The large number of new arrivals in the 1960s and 1970s were seen as meeting an important economic need.

Conditions have changed and our migrant intake needs to reflect this. At a time when there is already serious unemployment in Australia, bringing in more unskilled workers can cause resentment. Even in skilled areas--for example, doctors--there are arguments against unconditional migration. We must first look after our own. Yet doctors are an example of an unfulfilled need. There is still a great need for doctors in rural areas which Australian graduates to date seem reluctant or unable to meet.

Instead of erecting a mindless Fortress Australia against newcomers, we should look to a pattern of migration which, as it did in the past, advances properly thought out national goals. Opposition to immigration is in part a reflection of the deep malaise and anxiety felt by many Australians. Until more wealth is created and there are more jobs on offer, tightening family reunion requirements and expanding skilled business migration makes sense. It is difficult to see how newly arrived migrants can be expected to share the values, goals and aspirations of Australians if in coming here they remain dispossessed, poor and on the margins of society. Little wonder there has been a decline in public confidence about immigration and the value of multiculturalism.

The question, however, remains as to what level of immigration is in the national interest. Our population is unlikely to grow sufficiently without immigration to take advantage of the opportunities made possible by our proximity to the south-east Asian region, nor will it be conducive to maintaining our national integrity. Fortress Australia is a mentality we cannot let prevail for long. There is a pattern of non-discriminatory migration which will serve the national interest and receive community support. Getting the balance right must be a national priority.

I enter political life laterally, so to speak, against the background of a professional career in law spanning over 20 years. Practice of many facets of law in Australia and in the United States has given me some insight into the human condition. It has heightened my awareness of the need to guard against injustice. It has strengthened my resolve to be a voice for the oppressed. The law can be a powerful instrument for social and political change. It is the machinery which maintains and regulates legal relationships and social activity in a free and democratic society.

It remains an abiding concern that many Australians cannot afford access to justice. The Attorney-General (Mr Williams) has referred to the Australian Law Reform Commission the question of changes to the adversarial system of litigation and alternative dispute resolution. The problems of delay, technicality and expense are well known and clear. The need to find a solution to provide the Australian community with an affordable and efficient dispute resolution system is yet another manifestation of a fair and just society.

I am grateful to those in the Liberal Party of New South Wales who saw in me a candidate worth fostering--one who would continue the great traditions of Liberal senators from New South Wales. I mention my friend Peter Collins, Leader of the Opposition in New South Wales, who for many years encouraged my interest; Rosemary Foot, former Deputy Leader of the Opposition and the first woman in New South Wales to hold that office, who started me on my journey; and Jessie Bartos, who helped along the way. I also acknowledge Chris McDiven, President of the Liberal Women's Council, who has excelled at identifying and encouraging women political can didates from all walks of life.

I am grateful to have the love and support of my family and friends, some of whom have travelled to be here. I especially acknowledge my father, Bill Lloyd, now in his 85th year, here with me today; my late mother, Mary Lloyd, who would have loved to be here; my husband, mentor and friend, Andrew Rogers, who has so generously encouraged my personal aspirations; and my son, Adam, who is my inspiration.

I am immensely proud to be one of the 26 coalition women in the federal parliament and to be part of the march to government on 2 March 1996, which gave expression to the Liberal Party's commitment to the advancement of women into parliament. I am also proud to take my place alongside the women representatives from other parties. Together we now constitute 20 per cent of the national parliament--an historic first. Never before has the national parliament been as representative of the people it serves.

If that is the sort of society we want Australia to be, we need to confront the choices which will deliver equality and efficiency. This is not an improbable mix of the practical and the visionary. It is about democratic values, opportunity, progress and the relentless search of the human spirit to do better. Oscar Wilde described it thus:

A map of the world that does not include Utopia is not worth even glancing at, for it leaves out the one country at which Humanity is always landing. And when Humanity lands there, it looks out and, seeing a better country, sets sail. Progress is the realisation of the Utopias.

Putting rationality into equality and some humanity into efficiency is within our grasp. And I look forward to taking part in its realisation.

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