PM Transcripts

FOR PRESS 66/ 015
P. M. No. 17/ 1966
FURTHER DROUGHT RELIEF MEASURES
Statement by the Prime Minister, Mr. Harold Holt.
Although there have been some beneficial rains in many
parts of the country over recent weeks, the position of people
suffering from the rought is still acute in many areas and the
States o? New South Wales and Queensland are still finding it
necessary to continue measures to relieve the situation o those
primary producers who are still affected by this unfortunate
position. The Commonwealth Government made it clear some time ago
that the Premiers of the two States could take it that Commonwealth
financial assistance would cover whatever deficit they might have
in their budgets as a result of drought relief measures their
Governments might take.
Both States set up several months ago schemes of concessional
loans of up to $ 6,000 for essential carry-on purposes for drought
affected primary producers who are in necessi tous circumstances
and are unable to finance their essential carry-on requirements
from their own resources or through ordinary commercial channels.
These loans are being made at 5 per cent. interest per annum and
advances are re ayabie over a maximum period of 7 years with
repayment of interest and pr incipal de erred for the first two
years. In addition, the States instituted other schemes which
included advances through the banks for fodder purchases, grants to
local councils for special pur poses associated with drought
problems in particular areas, local unemployment relief work and
rebate and subsidy schemes for the carriage of fodder and stock
by road and rail.
The Premier of Queensland wrote to me recently saying that
in addition to these measures, his Government intended to
introduce rail and road concessions to facilitate the return of
stock from agistment areas and the re-stocking of properties
which have suffered from the drought, and he asked whether these
measures would fall within the scope of the Commonwealth's
assistance to the State on account of the drought.
I informed the Premier that the cost to his Government of
these measures will be accepted as drought relief expenditure 4nder
the arrangements for the provision of Commonwealth financial
assistance to Queensland. I also advised the Premier of New South
Wales that the advice I had given to the Queensland Government'
would apply equally in the case of his State.
The Premier of New South Wales also took up with me the
question of whether advances made for fodder purchased by the
lairying industry will be accepted by the Commonwealth as falling
within he scope of its offer of assistance and I assured him
that this would be the case.
We are looking forward hopefully to good Autumn rains and
if these come, it wil1 be a very encouragin be inning to what
could be a record wheat sowing and the rehabilitation of drought
affected pastoral areas. In the meantime, the new measures taken
by the States with the financial bakdng of the Commonwealth
Government should assist in bringing some relief.
CANBERRA 23rd Febr'uary, 1966.