PM Transcripts

FOR PRESS 27 OCT1961
L P. M. No. 110/ 1967.
DROUGHT RELIEF VICTORIA AND SOUTH AUSTRALIA
Statement by the Prime Minister, Mr. Harold Holt
On Monday last discussions were held between officials from
the Commonwealth and States of Victoria and South Australia about
ways in which the Commonwealth might help the two States provide
relief in those areas at present suffering from drought. I had
already indicated the Commonwealth Government's willingness to
provide such assistance and the purpose of these talks was to
examine the specific measures proposed by the two States for
drought relief.
The Commonwealth's general policy towards natural disaster
relief is that where State Governments, which have the primary
responsibility in this area, do not have sufficient financial
resources to provide the assistance required, the Commonwealth
is prepared to help meet the cost of such relief measures as
appear to be appropriate in the circumstances. Thus where the
disaster is on a large scale, as was the case in the droughts
in New South Wales and Queensland and the bush fires in Tasmania,
we are prepared to assist State Governments in financing such
expenditures. Over the past two years the Commonwealth has
provided .43 million in assistance to reimburse State for
expenditure incurred in providing relief from the effects of
natural disasters.
As regards the request made by the Governments of Victoria
and South Australia, the Commonwealth Government has agreed to
meet the total cost of the specific measures which the two States
consider to be necessary at this stage, and to make an immediate initial
advance of P'l million to each State. These measures are as
follows:-loans to enable primary producers to continue in
production where cred. it is not available through
normal commercial channels;
rebates on freight in respect of the transport of
fodder and water to drought-affected areas, the
transport of starving stock out of drought areas
and their subsequent return;
some miscellaneous items of expenditure in relation
to the drought, which may include cloud seeding and
certain emergency water supply measures.
The Commonwealth will give sy7mpathetic consideration to
extending the present ariangements as necessary.
The present arrangements will apply to expenditure on drought
relief incurred by the two States from 1st October 1967. It has
also been agred that the arrangements will be examined before the
end of the 1967/ 68 financial year so as to determine what
arrangements should apply for 1968/ 69. Assistance to the States
will take the form of loans wheie the States themselves make
loans; assistance in respect of other expenditure will take the
form of grants.
It is not possible to say at this stage what the expenditure
of the two States on relief measures will be in 1967/ 68, but
estimates have been mentioned of the order of a total of
million. CADTBERRA October, 1967.