Hawke Government: 1988
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In
1988 Bob Hawke was still Prime Minister, John Howard the Opposition Leader,
Ian Sinclair led the National Party and Janine Haines led the Australian
Democrats. The third Hawke government was a phenomenon in Australian
politics. No Labor government since the creation of the Commonwealth had
lasted so long and no other Australian government had set before itself such
a major agenda of national reconstruction. The Hawke government’s decision
to try and turn around a national economic and social profile that was at
least a century old received support across traditional party and industrial
lines but equally it attracted criticism and the government was never
electorally dominant. While each term of the Hawke government can be
identified with particular events and developments, none can compete with
the changes that occurred between the 1987 and 1990 elections in terms of
the impact on the public sector; a public sector subjected to
commercialisation, corporatisation, privatisation and reorganisation.
Hawke as a great celebrator made the most of commemorative opportunities. In
1988 Australia celebrated the Bicentenary of the arrival of the First Fleet
at Sydney Cove and European settlement in Australia in a year-long series of
events conducted in all states and territories. Highlights included a
re-enactment of the journey of the First Fleet from the United Kingdom to
Australia, and the opening of the new Parliament House by the Queen on 9 May
1988.
The Queen sits beside Bob Hawke who waves to the crowd during the 1988 tour
Courtesy of the National Library of Australia and The Canberra Times
On Christmas Island phosphate mining and its associated infrastructure had
been the main reason for rainforest clearing with almost 3000 hectares of
forest being cleared in the post-war period up to the mid 1980s. Bob Hawke
put a Prime Ministerial moratorium on further rainforest clearing in 1988.
And the Industrial Relations Act 1988 replaced the Conciliation and
Arbitration Act 1904
JANUARY
The Prime Minister announced a minor reshuffle of the Ministry caused by the resignations of the Minister for the Arts, Sport, the Environment, Tourism and Territories, John Brown and the Special Minister for State, Senator Susan Ryan
‘Hawke looks at wider cabinet shake up’ by Geoff Kitney
Australian Financial Review, January 5, 1988
‘Reshuffle aids Hawke’s agenda on economy’ by Louise Dodson
Australian Financial Review, January 20, 1988
‘Hawke’s day for organising his team for the year’ by Glenn Milne
Sydney Morning Herald, January 19, 1988
FEBRUARY
The Australian Conciliation and Arbitration Commission granted a national wage rise of $6.00 per week after the Commission deferred its decision in December 1987. The Commission had wanted to examine the effects of the October 1987 stock market crash but concluded there was little evidence of serious or adverse effects on the economy
‘Wage bench awards a flat $6.00 from February 5’
West Australian, February 6-7
‘The Commissions $6.00 compromise’
Sydney Morning Herald, February 6, 1988: The Prime announced that an aviation training college would be built at Launceston, Tasmania. It had been planned to build the College in Canberra at Watson High School, however a bid by the Tasmanian State Institute of Technology was successful
‘Aviation courses in ACT an option’ by John Jessor
Canberra Times, February 7th, 1998: Mick Young, the Minister for Immigration, Local Government and Ethnic Affairs resigned from the Ministry and from Parliament. Young’s resignation followed controversy over a $10,000.00 donation to the Australian Labor Party in June 1987 by the wood-chipping company Harris-Daishowa Pty Ltd. The non disclosure of the donation led to an investigation by the Australian Federal Police into possible breaches of the Commonwealth’s Electoral Act. In resigning Young said he was innocent of the any wrong doing
‘PM backs Young as row grows’ by Mike Steketee
Sydney Morning Herald, February 4, 1988
‘Young quits: I’m innocent’ by Mike Steketee
Sydney Morning Herald, February 9, 1988
‘The Young resignation: cause and effect’
Sydney Morning Herald, February 9, 1988: The Prime Minister announced the second reshuffle of his ministry in 1988. The changes followed the resignation of Mick Young. In announcing the changes the Prime Minister stated that the Minister for Defence, Kym Beazley would replace Young as Vice President of the Executive Council
‘Gaps open for a minister and tactician’ by Steve Burrell
Sydney Morning Herald, February 9, 1988
‘Hawke warned: no cosy factional deals’ by Geoff Kitney
Australian Financial Review, February 15, 1988: At a meeting in Canberra between the Prime Minister and the French Minister for Defence, Andre Giraud, it was agreed to ‘bury the hatchet’ and return to normal relations between the two countries. The meeting ended a year-long freeze on ministerial contacts imposed by France following Australia’s strong support on the United Nations for an independent New Caledonia
‘French Minister to visit Australia’ by John Jessor
Canberra Times, February 25, 1988
MARCH
The Prime Minister, speaking during the by-election campaign for the seat of Groom, forecast that inflation would fall to 5 percent in 1989 and that real living standards would improve. He said that while the worst of the economic pressures were over there was still a need for tough economic policies, but that living standards should be maintained rather than decline.
‘Living standards up, inflation down’ by Steve Burrell
Australian Financial Review, March 31, 1988
‘PM sees hope on taxes and pay’ by Glenn Milne and Paul Grigson
Sydney Morning Herald, March 31, 1988
APRIL
The government announced that the 1988 immigration intake would be increased by 12,000 under the business migration and skilled workers program. The decision followed a large rise in the number of applicants and took the total 1987-1988 intake to 132,000
‘Migrant intake up 12,000 for Bicentenary’ by Ross Peake
The Age, April 7, 1988
‘Holding lifts migrant intake’ by Wayne Burns
Australian Financial Review, April 7, 1988: The Prime Minister rejected a foreshadowed Caucus move for the establishment of a national coal marketing authority. Hawke stated he did not believe an authority would be able to negotiate better prices for Australia’s coal exports. A coal authority was part of Australian was part of Australian Labour Party policy bur Ministers did not believe it would be effective in protecting the industry
‘Hawke rules out coal board’ by Peter Gill
Australian Financial Review, April 12, 1988
‘PM rejects coal authority’
Canberra Times, April 13, 1988
MAY
The Prime Minister detailed the Government’s social-justice strategy to the early 1990’s while launching the report ‘Towards a fairer Australia’, which set out the Government’s priorities. The policy was stated in general terms with no detail on costing and no radical new policy measures. Hawke said the maintenance and improvement of living standards depended upon what happened to wages, taxes and prices
‘Social justice plan to woo lost ALP flock’ by Anna Grutzner
Australian, May 2, 1988
‘Social goals dependent upon economy says Hawke’ by Anna Grutzner
Australian, May 3, 1988
‘Social policies will get more emphasis says Hawke’ by Robert Garran
Age, May 2, 1988
May 9 Parliament House Opening
The new Parliament House was opened by Queen Elizabeth 11. Parliamentarians were not due to move in until the August session of Parliament. The Canberra Times and The Age carried colour supplements on the opening of the new Parliament House and all papers had extensive coverage in may 10, 1988 editions
The Queen sits beside a standing Bob Hawke who waves to the crowd during the 1988 tour
The Prime Minister agreed to send anti-riot gear to Vanuatu after one person was killed and numerous persons injured following riots over traditional land rights. The request for assistance was made directly to Hawke by Vanuatu’s Prime Minister, Father Walter Lini. The Prime Minister later stated he would consider sending Australian military aid if necessary.
‘Riot gear sent to aid Vanuatu’ by Andrew Fraser
Canberra Times, May 18, 1988
‘Hawke sends aid after Vila riot’ by Helen O’Neil
Sydney Morning Herald, May 18, 1988: After an increase in the ratings of the government run ABC, Australian Prime Minister Bob Hawke enjoys reflected glory from popular television series "Yes, Prime Minister!"
May 25 Mini-Budget Announced
The Treasurer Paul Keating delivering the so called mini-budget stated in his opening remarks ‘I will announce to the people of Australia far reaching economic reforms that will take the nation into the 21st century’ Major components of the strategy included a substantial reduction in company taxation, reduction in tariffs, a gold tax from 1991, a tax on superannuation income and a reduction in controls on government businesses
‘ALP plans for taxing your super’ by Louise Dodson
Australian Financial Review, May 9, 1988
‘Forgoing self interest for national goals’
Australian Financial Review, May 25, 1988
‘Gold miners may lose tax exempt status, says PM’ by Robert Garran
The Age, May 14, 1988
JUNE
6-9 June ALP National Conference
The 38th Biennia national Conference of the Australian Labor Party was held in Hobart. The conference saw a number of major changes especially in relation to tertiary education fees, uranium and privatisation.
‘Faith without fervour’ by Paul Kelly
West Australian, June 11-12, 1988
‘Home team drubs Hawke in privatisation battle’ by Mike Steketee
Sydney Morning Herald, May 1, 1988
‘Tertiary tax likely to get go-ahead’ by Michelle Grattan
The Age, June 6, 1988: The Prime Minister, speaking at Barunga in the Northern Territory, outlined a consultative process designed to finalise a treaty with Aborigines by mid-1990. Hawke announced the proposal, which would include a country-wide convention, after talks with tribal elders and representatives from a number of Aboriginal organisations attending a cultural festival at Barunga.
A statement of national Aboriginal political objectives issued to the federal government in June 1988 became known as the ‘Barunga Statement’. Written on bark and presented to Prime Minister Hawke at the 1988 festival, it called for Aboriginal self-management, a national system of land rights, compensation for loss of lands, respect for Aboriginal identity, an end to discrimination, and the granting of full civil, economic, social and cultural rights. Hawke said the Government would fund the consultation process and the first part of the process would be for Aboriginal treaty. The Aborigines issued a statement to the Government setting out the principals they would like to see included in the treaty. The Prime Minister responded by saying that he wished to conclude a treaty between Aboriginal and other Australians by 1990, but his wish was not fulfilled.
‘Aboriginal treaty by 1990’
Canberra Times, June 13, 1988
‘A pact with aborigines’
Canberra Times, June 13, 1988
‘Time for white Australians to make amends’
Australian Financial Review, June 15, 1988
JULY
The government announced that Canberra’s planning body, the national Capital Development body would be abolished. The NCDC would be replaced by a small national capital planning authority to oversee the national capital plan that would be binding on the Australian Capital Territory government
‘NCDC goes, what now?’’ by Phillip Hobbs
Canberra Times, July 8, 1988: Following a meeting with ACTU representatives the Minister for Industrial relations, Ralph Willis, agreed to amend the government’s submission for the national wage case. The government agreed to alter the submission so that lower paid workers and members of weaker trade unions would not be disadvantaged under the new wages system. The move followed the threat of a national strike
‘General strike threat on wages’ by Paul Molloy
Australian, July 1, 1988
‘Kelty wins breather on general strike’ by Paul Molloy
Australian, July 5, 1988
‘National strike threat on pay’ by Brad Norington
Sydney Morning Herald, July 1, 1988: The Prime Minister, speaking at a citizenship ceremony in Melbourne, ruled out sanctions against immigrants who did mot take up citizenship, which had been a central recommendation of the Committee to Advise on Australia’s Immigration Policies. The Committee had said immigrants should be denied non-survival welfare benefits and the right to sponsor relatives to Australia if they failed to become naturalised. Hawke re-affirmed the Government’s commitment to multiculturalism, which the Committee said was devisive and confusing. Hawke emphasised that the Government had yet to consider the report of the Committee
‘PM defends multiculturalism’ by Anna Grutzner
Australian July 20, 1988
AUGUST
The British Prime Minister, Margaret Thatcher visited Australia. During the visit she held talks with Australian Prime Minister on a range of issues, including trade, South Africa and the Commonwealth. Hawke had wanted her to endorse former Australian Prime Minister Malcolm Fraser for the position of Secretary-General of the Commonwealth, but it was reported that she refused
‘Hawke lobbies Thatcher for Fraser’ by Craig Skehan
Canberra Times, August 3 1988
‘Thatcher refuses to endorse Fraser post’ by Peter Logue
Australian, August 4 1988
‘PM’s get closer except on sanction’ by David Humphries
The Age, August 4 1988
Howard Criticised by Fraser
John Howard - Leader of the opposition Liberal Party is criticised by former Prime Minister and Liberal Malcolm Fraser. Present P.M. Bob Hawke is listening to Howard's appeal which harks back to 'The Dismissal' in 1975, when Gough Whitlam's government was dismissed by the then Governor General Sir John Kerr
After months of speculation the Queen and the Government announced that the Minister for Foreign Affairs and Trade, Bill Hayden had been appointed Governor-General to succeed Sir Ninian Stephen on February 14, 1989. Hayden immediately resigned from Parliament
‘Hayden quits politics to become Governor General’ by Peter Logue
Australian August 18, 1988
‘Bill Hayden…from labor stalwart to Queen’s man’ by Mike Steketee
Sydney Morning Herald, August 30, 1988: The Prime Minister re-assured Caucus that he and the Treasurer, Paul Keating had a strong working relationship and that neither Keating nor anyone else expected him to name a date on which he would retire as Prime Minister. The reassurance followed widespread reports that Keating was anxious for Hawke to retire so that he could be appointed Prime Minister.
‘Hawke set to stay 4-5 years, says Richardson’ by Mike Steketee
Sydney Morning Herald, August 31, 1988
‘Hawke rules out a retirement date’ by Mike Steketee
Sydney Morning Herald, August 31, 1988
SEPTEMBER
The South Pacific Forum, attended by the Prime Minister concluded with no mention of the internal situation in Fiji. However while at the Forum the Prime Minister met with Fijian Prime Minister Ratu Sir Kamisese Mara who agreed to allow the Australian Minister for Foreign Affairs and Trade, Senator Gareth Evans to visit Fiji and while there meet with deposed Prime Minister Dr Timoci Bavadra
South Pacific Forum
‘Hawke to meet Fijian leader over Evans’ by David Humphries
The Age, September 20, 1988
OCTOBER
The Prime Minister announced that he had been advised the Indonesian authorities had charged an Indonesian police officer and a civilian over fatal shooting of Australian yachtsman David Blenkinsop and his fiancée, Joanne Mist, who was injured. The Prime Minister had strongly attacked the inaction of Indonesian authorities over the incident, during which it was alleged Blenkinsop was shot and thrown overboard in Indonesian waters.
‘Hawke to confront Indonesia on death of sailor’ by Keith Scott
Canberra Times, October 11, 1988: The Prime Minister, speaking at a dinner of the Business Council of Australia, announced that the Government would reduce ‘bureaucratic red tape’ for business, with a new request-and-response procedure for reviewing and removing excessive or onerous business regulations. Under the new procedures, business and professional groups, trade unions and individual firms would be able to apply for a review of any Government regulation it considered unreasonable
‘PM’s plan to cut red tape’ by Anne Davies
Australian Finance Review, October 12, 1988
October 15 and Looking for improvement!
Prime Minister Bob Hawke and Treasurer Paul Keating hard at work. In Australia's Bi-Centenary year the Caulfield Cup took place against the background of the economic backlash of the 1987 financial crash on the stock markets.
NOVEMBER
Saved by the favourite! In the Bicentennial year, the popular Empire Rose wins the Melbourne Cup. Prime Minister Bob Hawke and Treasurer Paul Keating see a way out in a time of rising interest rates.
The Prime Minister, giving the inaugural Sir Richard Kirby industrial relations address, warned trade unions that the restructuring of awards flowing from the 1988 National Wage Case decision should not lead to unwarranted wage increases. He said the restructuring awards was the key to a new era in industrial relations that would, if consensus was maintained yield “massive benefits” to the economy and the community.
‘Wage rises not the aim of reform’ by Michelle Grattan
The Age, November 17, 1988: The Prime Minister announced that the Government had agreed to extend the operation of the Pine Gap and Nurrungar Communication bases for a further ten years. It was also agreed to extend the period of notice required to terminate the agreement from one to three years. Hawke said that, after an agreement with the United States, he could specify for the first time the separate roles of Pine Gap and Nurrungar. Pine Gap was used primarily to collect intelligences which contributed to the verification of arms controls and disarmament agreements while Nurrungar was in controlling defence – linked satellites.
‘Hawke to speak on Pine gap’ by Roy Eccleston
Australian, November 22, 1988: Paul and Anita Keating were at Kirribilli House on 25 November 1988, when Hawke and Keating talked over the idea of Keating succeeding Hawke after the next election. Their mutual friend, businessman Peter Abeles, and Australian Council of Trade Unions head Bill Kelty were also present.
DECEMBER
The Prime Minister, speaking of the ‘Face to Face’ television program, reassured taxpayers that the promised 1989 reductions in personal income tax would still delivered, and in one block. But he indicated that wage earners would have to bear strong interest rates in the meantime to set the conditions for the reductions.
‘Tax cuts to go ahead’
Canberra Times, December 5, 1988
‘Hawke warns of tough measures’ by Peter Logue
Australian, December 5, 1988
Related links
Overseas Speeches - United States