COMMONWEALTH DROUGHT RELIEF ASSISTANCE IN
1968-69
STATEMENTJ IN THE HOUSE OF REPRESENTATIVES
BY THE PRIME MINISTER, THE
RT. HON. J. G. GORTON, M. P. ON
AUGUST, 1968
After consultation with New South Wales, Victoria,
Queensland and South Australia, my Government has decided that, subject
to certain limitations, drought relief assistance will continue to be provided
to those States in 1968-69. Although the drought which has been affecting
most of the eastern half of the Australian continent now appears to be
virtually over, we accept that the need for drought relief measures has not
ceased with the advent of rains and that some further Commonwealth
assistance in respect of State relief measures will be necessary in 1968-69.
The Commonwealth will continue to reimburse the
States in 1968-69 for their drought relief expenditures arising from
Loans made during the whole of 1968-69 to drought-affected
farmers who establish a need for " carry-on" loan
assistance prior to the end of September, 1968 or for
loan assistance for restocking prior to the end of
December;
Freight concessions extended to drought-affected farmers
prior to the end of December on the trrnsport of stock
back from agistment or for re-stocking purposes;
Expenditure actually incurred on other measures, including
expenditure by local authorities from grants for the
maintenance of employment in rural areas, pri or to the
end of September.
I emphasise that it is not the Commonwealth's intention
that the various State relief measures should necessarily cease on the dates
on which Commonwealth assistance to the States will cease. The Commonwealth's
approach is that, if a State feels that it is necessary to continue
a particular measure after the " cut-off'' date for Commonwealth assistance,
it would be reasonable for the State itself to meet the limited expenditure
likely to be involved. In this regard, I point out that contrary to the normal
arrangements in relation to natural disaster relief assistance, the Commonwealth
has been meeting virtually the whole cost of State expenditures on
drought relief measures. The arrangements have undoubtedly been the most
generous ever devised to meet such a situation and, in the three years to the
end of 1967-68, they have resulted in reimbursements of State relief
expenditur~ s amoucuing to nearly $ 60 million. For 1968-69, it is estimated
that, on the basis of the arrangements outlined, State expenditures eligible
for reimbursement will amount to a further $ 19 million made up as follows: /' 2
2
New South Wales 6. 0 million
Victoria $ 11.0 million
Queensland 0.9 million
South Australia 4 million
$ 19. 3 million
These payments include reimbursements in respect of commitments
entered into during 1967-68.
I have made it clear to the four States concerned that the
Commonwealth will be prepared to consider new arrangements if
drought conditions happen to re-emerge on a large scale. However,
I am hopeful that present expectations for a generally favourable rural
season in 1968-69 will be fulfilled and that, in consequence, there will
be a substantial increase in rural output and incomes of farmers.