Hawke Government: 1987
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Return to Anniversary introduction
Former
Liberal leader, Andrew Peacock, was dismissed from the Shadow Ministry by
John Howard in March, following Peacock's comments to Victorian Opposition
Leader, Jeff Kennett.
A Federal election (the double dissolution Election) was called six months
early by Prime Minister, Bob Hawke to capitalise on the disunity in the
Federal Opposition. It was the first winter election in Australian Federal
political history and resulted in an increased majority for the Labor
government, a result that saw it become the first Labor government to win
three successive terms
The New York stock market crash in October soon had 'ripple' effects in
Australia, ending the speculative boom and leading to the spectacular
collapse of the business empires of high profile entrepreneurs who had
emerged during the early 1980s.
Ministry
The third Hawke Ministry was sworn into office by the Governor General, Sir Ninian Stephen, on July 24, 1987. Prime Minister Hawke announced details of the new 30-member Ministry following their election by Caucus, and implemented a two-level ministerial structure, with distinctions drawn between senior and junior ministers.
The third Hawke Ministry comprised the following Cabinet members and junior ministers responsible for portfolios within the Cabinet members’ departments.
| Hon. Robert James Lee Hawke, AC, MP | Prime Minister* |
| Senator Hon. Susan Ryan | Special Minister of State, Minister assisting the Prime Minister on the Status of Women and the Bicentenary* |
| Hon. Lionel Bowen, MP | Deputy Prime Minister and Attorney-General* |
| Senator Hon. Michael Tate | - Minister (Parliamentary Secretary) for Justice |
| Hon. Peter Staples, MP | - Minister for Consumer Affairs and Minister Assisting the Treasurer for Prices |
| Senator Hon. John Button | Leader of the Government in the Senate, Minister for Industry, Technology and Commerce* |
| Hon. Barry Jones, MP | - Minister for Science and Small Business |
| Senator Hon. Gareth Evans | Deputy Leader of the Government in the Senate, Minister for Transport and Communications* |
| Hon. Peter Duncan, MP | - Minister for Land Transport |
| Hon. Paul Keating, MP | Treasurer* |
| Hon. Michael Young, MP | Minister for Immigration, Local Government and Ethnic Affairs* |
| Senator Hon. Margaret Reynolds | - Parliamentary Secretary for Local Government |
| Senator Hon. Peter Walsh | Minister for Finance* |
| Hon. William Hayden, MP | Minister for Foreign Affairs, Trade* |
| Hon. Michael Duffy, MP | - Minister for Trade Negotiations |
| Hon. Ralph Willis, MP | Minister for Industrial Relations* |
| Hon. John Dawkins, MP | Minister for Employment Education and Training* |
| Hon. Allan Clyde Holding, MP | - Minister for Employment Services and Youth Affairs |
| Hon. Kim Beazley, MP | Minister for Defence* |
| Hon. Ros Kelly, MP | - Parliamentary Secretary for Defence Science and Personnel |
| Hon. John Kerin, MP | Minister for Primaries Industry, Energy* |
| Hon. Peter Morris, MP | - Minister for Resources |
| Hon. Brian Howe, MP | Minister for Social Security* |
| Hon. Stewart West, MP | Minister for Administrative Services* |
| Senator Hon. Robert Ray | - Minister for Home Affairs |
| Hon. John Brown, MP | Minister for the Arts, Sport, the Environment, Tourism and Territories* |
| Senator Hon. Graham Richardson | - Minister for the Environment and the Arts |
| Hon. Dr Neal Blewett, MP | Minister for Community Services and Health* |
| Hon. Benjamin Humphries, MP | - Minister for Veterans’ Affairs |
| Hon. Gerry Hand, MP | - Minister for Aboriginal Affairs |
* Minister in Cabinet
JANUARY
‘Options to free the airways’ by Tony Harrington
The Age, January 8, 1987
‘End of airline pact in sight’ by John Jessor
Canberra Times, January 8,1987: The report of the Independent Review of Economic Regulation of Domestic Aviation was released outlining five options for the Government to consider in developing a new domestic airlines policy
‘Hawke to put peace ideas to Israelis’ by Mike Steketee
Sydney Morning Herald, January 26, 1987: The Prime Minister continued his visit to the Middle East and held a meeting in Jerusalem with Israeli Prime Minister Yitzhak Shamir. Hawke discussed the Jordanian peace conference proposal with Shamir, who objected to the participation at the Soviet Union in such a process and continued to refuse to recognise the Palestinian Liberation Organisation.
‘Hawke offers to ‘bind’ tariffs in bid to roll back protection’ by Gregory Hywood
Australian Financial Review, January 30, 1987: The Prime Minister
giving a keynote address at the World Economic Forum in Davos, Switzerland
issued a warning that the trade war between the main Western economies had
the potential to undermine the Western security and political relationship
leading to world turmoil. Mr Hawke proposed a ‘ceasefire’ by the United
States and European Community on the level of subsidies for agricultural
produce. He stated that Australia would negotiate the binding of tariffs in
all sectors - a plan whereby there would be no overall increase in tariff
levels. The Prime Minister outlined seven specific proposals.
The details were published in a government publication Resolving the world
agricultural crisis: an Australian proposal 1987
FEBRUARY
‘Canberra to boost South Pacific Defence’ by Mark Taylor
The Age, February 21 1987: Moves to help island countries upgrade their national maritime surveillance systems by provision of patrol boats, naval advisory assistance and training; a wider program of ship visits by the Royal Australian Navy and long-range maritime surveillance flights within the region and island States to Australia’s north. Beasley said the aim was to protect the national sovereignty of the island nations occupying Australia’s trade sea lanes.
APRIL
‘Hawke signals squeeze on dole’ by Garran, Robert & Hugo Kelly
The Age, April 8 1987: The Prime Minister and the Minister for Social Security (Brian Howe) foreshadowed major changes to the unemployment benefits system designed to get long-term unemployed back into the workforce. Hawke stated that the Government was examining benefit payments for those people not actively seeking work. Howe stated that the benefits need to be integrated in a training-education system and he favoured a three-pronged approach to redesign unemployment benefits, to measures to encourage people to return to work, and to integrate income support with training and work.
MAY
‘Libyans expelled’ by Ross Peake’
The Australian, May 19 1987: The Prime Minister announced that the Government had severed diplomatic relations with Libya and had ordered the Libyan People’s Bureau closed and its officials expelled. The Prime Minister said the action was taken in the context of both domestic and regional concern about the “increasingly disruptive activities of Libya” but did not give details of the activities. The decision was believed to be linked with alleged Libyan activities in the South Pacific and contacts with Australia Aborigines.
‘Hawke moves against coup leaders in Fiji’ by Amanda Buckley
Australian Financial Review May 22 1987: In response to the situation in Fiji the Australian Governor decided to cancel scheduled bilateral talks with Fiji, suspend the training of Fijian military personnel in Australian and instruct Australian Defence Force advisory personnel serving in Fiji not to report for duty. The Government decided not to impose economic sanctions at the time and called on the Australian Council of Trade Unions not proceed with sanctions “at this stage”
‘Hawke keeps the betting open on an early elections’ by Michelle Grattan
The Age May 25 1987: Speculation increased that the Prime Minister would call an early election when the Government withdrew the Industrial Relations Bill 1987 only hours before it was scheduled to be debated in Parliament.The withdrawal was ostensibly to allow further consultations with employers, who vigorously opposed the Bill, over previous three years. Speculation was also fuelled by reports that the Government would release its family assistance package in June 1987 rather than as part of the 1987-1988 Budget
‘Hawke names the day' by Paul Malone
The Canberra Times May 28 1987: Tacticians for both the Government and the Opposition agreed that Victoria would be the main ‘battleground’ for the election since it had a large number of marginal electorates
‘Hawke says Labor will reduce hospital queues’ by Louise Dodson
Australian Financial Review 19 June, 1987: The Prime Minister, in the Australian Labor Party’s first spending initiative for the election, offered the States $50 million to reduce hospital waiting lists over two years. The dollar-for-dollar proposal was designed to answer Liberal Party claims that long hospital waiting lists were linked with the failure of Medicare
JUNE
‘The Hawke briefed by US leaders’ By Nichols Rothwell
Canberra Times June 22, 1987: The Annual United States – Australian NAZUS Ministerial Council, was preceded by an Association of South East Asian Nations meeting in Singapore at which Australia disagreed on the issue of a nuclear free zone in the South Pacific
The third Hawke Government: an address by the Prime Minister Bob Hawke, Sydney Opera House, June 23, 1987
The Prime Minister announced the Australian labor Party policy for the July 11, 1987 election in a speech at the Sydney Opera House. Hawke called on the Australian people to give the Government a mandate to continue its task of ‘national renewal, construction and revitalisation’. A family allowance supplement designed to ensure that by 1990 no Australian child would need to be living in poverty was the major initiative announced
‘PM vows no poor children in 1990’ by Paul Malone
Canberra Times, June 24, 1987
‘Family aid tops slim ALP policy promises’ by Michelle Grattan
The Age, June 23, 1987
‘Hawke supports share plan without tax break’ by Paul Kelly
Australian June 26, 1987: Abolish capital gains tax, assets test and fringe benefits restore tax; re-introduce for bona fide entertainment expenses, modify racing lump superannuation payments. Funding for non-government school on a basic grant and needs-based supplement; schools to raise unlimited funds privately; support private universities ; free scholarships to country’s best applicants ; elimination of disparities between AUSTUDY and un-employment
JULY
‘Hawke’s third-term agenda’ by Paul Kelly
Weekend Australian July 4-5 1987: The Prime Minister, responding to pressure to outline a twelve-point which emphasised industrial relations and deregulation of the oil industry and placed heavy emphasis on tourism, high technology and manufactured exports. Hawke also outlined his goal of achieving five million international visitors to Australia by the year 2000 as part of his plans to expand the tourism industry
Hawke’s
Third Ministry
Despite loss of popularity as measured by opinion polls, Hawke took the ALP to a record third term in office at the general election on 8 July Hawke’s third ministry was sworn in on 24 July 1987.. The new 30 member Ministry comprised the cabinet, members of which were responsible for one of the ‘super’ departments announced in the public service reorganisation on July 14 and a junior Ministry whose members were responsible for a particular portfolio within a department. Senator Susan Ryan was the only member of Cabinet not responsible for a department and the Department of Veterans’ Affairs the only department headed by a ‘junior’ minister. New ministers included Gerard Hand, Ros Kelly, Graham Richardson, Robert Ray, Benjamin Humphreys, Peter Duncan, Peter Staples and Margaret Reynolds
‘Public Service Changes’ by Rod Campbell
Canberra Times July 15, 1987: The Prime Minister announced major changes to the public service with the number of department reduced from 28 to 17 and 3.000 positions abolished, saving $96 million per year. The Departments of Prime Minister and Cabinet, Defence, Social Security and Finance were largely unaffected and the Departments of Industry, Technology and Commerce. As part of the restructuring the Public Service Board was abolished and replaced by a small Public Service was abolished and replaces by a small Public Service Commission to consider policy matters
First Fleet re-enactment in trouble
A First Fleet re-enactment stalls in South Africa for lack of funds and is refused financial help by the Hawke Labour Government
AUGUST
‘PM caves in to Fiji’s new rulers’ by Mike Steketee
Sydney Morning Herald August 14, 1987: Reported that the Prime Minister had started to build links with new regime in Fiji, including agreeing to the appointment of a new Fijian High Commissioner in Canberra. It was also reported that he had written to the Fijian Government-General, Ratu Sir Penaia Ganilau, who headed the interim administration, emphasising Australia’s goodwill towards Fiji and preparing the way for a future restoration of aid to Fiji
‘Hawke rejects Labor opposition to assets sales’ by Michelle Grattan
The Age August 25, 1987: The Prime Minister suffered a setback when the Victorian State conference of the Australian Labor Party rejected any proposal to sell off public assets to private enterprise. It had been widely reported in the previous weeks that the Government wished to sell all or part of several assets, such as Qantas and the Commonwealth Banking Corporation, in an effort to reduce the Budget deficit. Hawke told the conference that it was time for the Party to begin debate on the privatisation issue and that the public resources were not being misdirected
SEPTEMBER
‘Hawke plans pact with Aborigines’ Paul Malone
Canberra Times September 2nd, 1987: The Prime Minister, speaking on an Aboriginal radio station in Alice Springs, stated that the Government planned to implement a form of treaty with Aborigines before the end of 1987. He said the “compact of understanding” could be implemented as part of legislation coming before Parliament to establish an independent body to administer Aboriginal affairs. However, the unexpected announcement fell short of the demands of Aboriginal leaders for a treaty formalized in the constitution. The announcement also brought widespread criticism from Aborigines and other sections of the community
‘Hawke’s challenge to streamline government’ by Michelle Grattan
The Age September 7 1987: The Prime Minister announced that the Government would review all Commonwealth programs and procedures to see whether any could be handed over to local government. Speaking at a meeting of the Local Government Association of Queensland, he said the at ‘it is necessary for all of us … to reassess how we undertake our functions and to reach agreement on respective roles and responsibilities
‘US Trade’ by Peter Logue
Australian September 13 1987: The Prime Minister, speaking on television, warned the United States that its trade policies were jeopardising relations with Australia. He said the United States was “trying to pervert normal international commercial relations’ and seeking to undermine Australia’s coal and beef trade with Japan. Revealing the depth of his concern with the increasingly protectionist nature of United States if Australian trade interests were seriously threatened. The following day in Canada, refused to rule out the use of the joint United States communication bases in Australia as a lever against the United States. However the Prime Minister responded bargaining chips in trade negotiations
OCTOBER
CHOGM & FIJI : PM may be right on Fiji but shouldn’t have said it by Michelle Grattan
The Age October 14th, 1987: Australia recalled its High Commissioner in Fiji, John Piper, following the resignation of the Fijian Governor-General, Ratu Sir Penia Ganilau. The Prime Minister of Australia, attending the Commonwealth Heads of Government Meeting (CHOGM) in Vancouver, responded that the resignation meant that Fiji was ‘prima facie’ out of the Commonwealth. Hawke’s statement on Fiji at CHOGM varied, from criticism of rhe Rabuka regime to verging on diplomatic recognition, and his contention that the Queen would issue a state on the status of Fiji was rejected by officials. The host of CHOGM, Canadian Prime Minister Brian Mulroney, announced that on the basis of established conventions, Fiji’s membership of the Commonwealth had lapsed with emergence of the Fiji republic on October 15, 1987
The economic outlook...
Australian Prime Minister, Bob Hawke, returns from the Commonwealth Heads of Government Meeting to find that the economy at home is in trouble in the wake of stock market crashes around the world, including an appalling day's trading on the Australian Stock Exchange on "Black Tuesday"
The stock market crash
A massive depreciation of the floating Australian dollar and heavy borrowing all led to a dramatic rise in Australian foreign debt. The Hawke government sought ways of reducing the budget deficit by privatising sections of Australian industry. Qantas, Australian Airlines, Telecom and Australia Post were put on a more commercial footing
NOVEMBER
‘Hawke urges Reagan to reduce US budget deficit’ by Mike Steketee
Sydney Morning Herald November 10, 1987: The Prime Minister wrote to the President of the United States, Ronald Regan, urging him to reduce the United states government deficit of US$23 billion. In a blunt political letter from ‘one politician to another’ Hawke made it clear that Australia believed confidence could only be restored to international financial markets if there was a tightening of United States fiscal policy
‘PM buries the hatchet over ship ban’ by Mike Taylor
The Prime Minister on an official visit to New Zealand confirmed that Australia with the approval of the United States had had a change of attitude towards New Zealand on the nuclear ship visit issue. And furthermore he indicated that Australia intended strengthening its defence relationship with New Zealand
DECEMBER
‘Hawke strikes a chord in Moscow’
The Age, December 4, 1987: The Prime Minister on his visit to the Soviet Union met with the Soviet Leader Mikhall Gorbechov and had what Hawke described as ‘genuinely frank and direct talks’ and said he believed he had established a cordial, constructive relationship with Gorbechov