PM Transcripts

-FOR PRESS P. M. No. 42/ 1966
ORD RIVER PiZOJECT
Statement by the Prime Minister, ir. Harold Holt
Cabinet devoted a good deal of time yesterday to a
considerable body of material which it had before it relating to
the Ord River Project.
The Government has already demonstrated its interest
in the development of the Ord and its willingness to assist the
Western Australian Government in the hope that an extensive
agricultural settlement can be maintained in the area utilising
the water of the Ord for the irrigation of the fertile soil which
it can serve. The Commonwealth has studied closely the results of
the research and practical farming which have already been carried
out there. Some of the cotton yields have been very encouraging
and no doubt can be improved as a result of further research and
additional farming experience.
The Commonwealth Jovernment approaches the question
of second stage development of the Ord in a helpful spirit. It
has noted however that latest estimates of cost are of the order
of $ 70 million an. this amount seems likely to escalate against
a background op rising costs in Western Australia as it moves
through the greatest industrial boom in its history.
There are some problems associated with depending on
cotton as a single crop and these need to be carefully considered.
It would not be in the general interest to establish a community
depending upon a single crop which faces falling world market
prices and either has to rely indefinitely on subsidised
production or proves unprofitable if subsidy is withdrawn.
Wje are aware of the principal advantages which could
flow from the larger settlement on the Ord that adoption of Stage
2 would encourage. The creation of an attractive township at
Kununurra, and the enthusiasm of those . ho have taken up farm
areas are encouraging features.
However, we have noted that there is at present a
good deal of pressure on resources in Western Australia, including
a shortage of labour for construction purposes. It seems an
inappropriate time, therefore, to launch another major construction
project. Any delay arising from this cause can be usefully
employed in further analysis of the potentialities of a variety of
kinds of production. The further time will also bring additional
information on crop yields, the incidence of pests and cost per
acre of their control, and other matters of this sort.
In order that consideration of the project can proceed
in a manner satisfactory to both the Commonwealth and Western
Australian Governments, I have arranged with the Acting Premier of
Western Australia for a meeting to take place next week between
three Commonwealth Ministers the Treasurer the Minister for
National Development and the Minister for tAe Interior and
Ministerial re resentatives of the Government of Western Australia.
The exchange of views and information should assist both Governments
in tihe further consideration we believe to be necessary
before final decisions are taken.
CANBERRA, 18th May, 1966