PM Transcripts

FOR PRESS: P. M. No. 81/ 1969
FURTHER DROUGHT ASSISTANCE TO QUEENSLAND
The Prime Minister announced today a further important
measure of relief for drought stricken farmers in Queensland.
Mr. Gorton said that the Premier had advised him that, with
the increasing severity of the drought, many hard hit primary producers
will find difficulty in meeting the Crown rentals on their land and their
local authority rates.
Recognising that neither the State Government nor the local
authorities can suffer a loss of revenue by deferring or remitting these
payments due from farmers and as much as $ 2 million could be involved
this year the Commonwealth Government has undertaken to make
non-interest bearing advances to the State Government. From these moneys
advanced by the Commonwealth the State Government will be able, in
appropriate cases, to make carry-on loans to the drought stricken farmers
from which they can meet their payments of Crown rentals and local
authority rates. Mr. Gorton said that these advances by the Commonwealth
to the State Government would be free of interest and that it would be a
matter for the Queensland Government to determine whether or not, as with
their present carry-on loans to drought stricken farmers, they should
charge interest at concessional rates in respect of the advances which they
made because they will be meeting administrative costs and, within reasonable
limits, any losses which may arise.
CA NBERRA November 1969
BACKGROUND: The Commonwealth has already agreed for 1969-70 to
meet on a dollar-for-dollar basis expenditure on eligible drought relief
measures up to $ 4 million and to meet the full cost in excess of $ 4 million.
It was anticipated that payments under this agreement would cost the
Commonwealth $ 8 million in 1969-70, but on the latest available information
it is now estimated that the Commonwealth Government's share of drought
relief measures in Queensland this year could amount to $ 17 million.
In the four years ended June 1969 the Commonwealth
provided Queensland with assistance totalling $ 17 million for approved
drought relief measures. In 1966-67 and 1967-68 the Commonwealth
provided special financial assistance of a general revenue nature to
Queensland to help offset the adverse effects of drought on State revenue.
This additional assistance totalled approximately $ 5 million.