FOR PRESS: PM. NO. 103/ 1972
COST OF ELECTION PROPOSALS
Statement by the Prime Mlinister, the Rt. Hon.
William McMahon, C. H., M. P.
I was hoping to announce the cost figures of the
Government's new proposals in the Liberal Party Policy Speech
together with costs of the Labor Party proposals on a comparable
basis. This is not possible. In many cases, there is no detail
and no clear basis for costing Labor's proposals. The details of our
proposals on a full year basis are set out below:-
COSTING OF NEW PROPOSALS FULL YEAR BASIS
PROPOSALS MILLION
HOUSING Interest Rate Subsidy
War Service Homes 7
EDUCATION Pre-School
Primary School Libraries
Underprivileged Children
Isolated Children 9
Other ( scholarships, etc.) 11
HEALTH Dental Service 10-20
Drugs, Alcoholism, Mental Illness 9
Low-income Families Health Insurance 7-11
Other ( physiotherapy, para-medical,
handicapped children, etc.) 1-3
WELFARE Pensions link with C. P. I. 7r
TRANSPORT Urban Transport
Main Line Railways 32
Other ( Road Safety, Beef Roads) ./ 2
INDUSTRY Depreciation Allo. wance on Buil ings 8
OTHER Allowance to cover other smaller items
loans for ex-servicemen,
environment) 1
TOTAL 333-349
The above figures do not include expenditure on urban and
regional development. As stated in the Policy Speech, $ 5 million
has been made available to the National Urban and Regional
Development Authority this financial year and Commonwealth
expenditure is expected to rise to the rate of about $ 80 million
a year in the first five years.
These estimates have been checked by the Commonwealth
Departments. They indicate that the total cost of the proposals
would be under $ 350 million on a full year basis.
The Labor Party has made some 90 promises on policy
involving new costs. At this stage it has not been possible to
make cost estimates for the majority because they are altogether
too vague or general in expression. But in some cases, costs can
and have been estimated. Nine out of the 90 promises have been
costed. They have been checked by the relevant Commonwealth
Departments. The total is some $ 1300 million on a full year basis.
Details are:-VILLION
EDUCATION ( full year basis)
Tertiary Education 280
( ii) Abolition of Fees ( from 1974)
( iii) Pro-School Centres and completion of
secondary education 50 at least
HEALTH Insurance 110
PENSIONS Increases
HOUSING Mortgage Interest
PUBLIC SERVICE week
4 weeks' annual leave and other
matters. 90
TRANSPORT Takeover-of all State railways
annual costs 190
( ii) Upgrading the systems 230
$ 1330 million
A total of over $ 1300 million for thee. costs makes it
plain that the costs of a lot of others coula be very substantial.
There are many others. One example is regional devlomont.
Another is the shipping proosals which are large indeed.
If the Leader of the Opposition likes to give more detail
on his promises, I will have the total cost estimated for him.
Mr Whitlam made a statement on Thursday last in which he
said, " All the proposals I have put and 1r McMahon has put are
within the rope of Commonwealth financial responsibility."
He is right about mine and completely wrong about his own.
Mr Whitlam has said that the money to pay for his proposals
would come f'obm a $ 5,000 million increase in Commonwealth revenue
in the next three years.
There are at least two comments which can be made about
this statement. First, Commonwealth revenue increases without any tax
changes would have beun of the order of $ 1,000 million between
11 and 12 per cent in 1971/ 72 and this year.
On that, the revenue increase over three years could not
approach $ 5,000 million unless inflation ran riot and the tax
burden was substantially increased.
Second, Mr Whitlam has overlooked one fact one
elementary fact the automatic growth of expenditure.
Commonwealth expenditure has also risen by about $ 1,000
million, or 11-12 per cent, in 1971/ 72 and this year. So that the
rises in revenue and exoenditure have been roughly the same.
A high proportion of the increase in expenditure goes to meet
increased wage and other costs.
A list of uncosted Labor proposals is attached.
CANBERRA, November, 1972
ATTACHMENT
LIST OF UNCOSTED LABOR PROPOSALS
EDUCATION: Remove ceiling on Conimonwealth Grants for education
from 1974.
Tax deductibility of child care fees to $ 250P. A.
( with conditions)
Extend commonwealth assistance ( building, equinment,
teachers, students) to Teachers' Colleges.
Child-care facilities in Dre-schools.
HEALTH " Sponsoring" of health centres: Public Nursing Homes;
Free School dental service; Dental therapists'
training Colleges.
WELFARE Australian assistance plan ' cost sharing" a range
of local welfare services.
National Superannuation Scheme.
National Compensation Scheme.
Abolition of means test within three years.
Payment of pensions overseas to Australians and
returned migrants.
CITIES Six Commonwealth-State land development commissions
operating costs.
Acquisition of non-income-earning land for parks,
coastlines, historical sites.
Deliberate rcduction of interest rates.
Funds for State housing commissions for waiting
periods to be brought down to uniform 12 months.
War service homes: Loan ratio raised to 100%
establishment of revolving fund removal of 1951
and 1961 restrictions.
Semi-government and local government authority access
to Loan Council.
Water and sewerage works programme 1973-78. ΓΈ/ 2
REGIONAL DEVELOPPIENT rro grar. imc-concciitratcd cn Albury,-Wodonga and
Towvnfzvi. l..:
* reduction -t'o loc-il-call te-7lephone rates of calls
between growth c : rtres and ca-itals.
PRIMARY INDUSTRY rca : v zv Lraiii of long-term, low-interest
inar: c tirough the banking -stem.
* co: 1scrv-otici and construction authority
irograiirle of wzuter conscrvation financed from
P. A. iLncomrz frorn Snowy Mountains Scheme.
fit,,, st-dityy on storage of wheat suri. Dluses.
wz~ o cqnourered to acqiuire/ market whole
' o; 7 :. ic st'b-liztion" of primary industries in
* acce'. c: at. cn of re-afforestation
PD-jor 2sur'C : ucesiirvevL assistance in
nro. Cinyj vesscls, pr-: cessing facilities.
abolition of r,, ine ex-_ cise tax
NORTHERN DEVELOPMF. N2,-
~ Coo?: cLtC~ n Pilbatra vroj ect
join4-I~ sic vc ture of ai. n. Ld private owners.
ship co:-uc; o inancincr on lines of Japanese
Co~ i~ twh c'i: r ' for X--ustralian Resources
Dev~ or1~.~: L~ u~' -Financ!.-c; of '-, hip construction.
FOREIGN IN% 7ESTVI-' T
Expanls f.' n of !~ L
guaran: C e Lnu&(* companies against diminished
re-turr. s
coOt IC l3c ;: i-ving lf-sufficiercy in rolling stock,
pipJ ~ Fhi light aircraft, fighter aircraft.
INDUSTRIAL RELAT3I( Q u~ tdl in v cai~ oaltraining and retraining
QUALITY OF LIFE 0e st a of ~. muiycentres in Schools by
Ca.-j tal C:. r. ts i-nitily ( all) High Schools.
tr3 -nillr" 0-yCDu h le-aderzs
a' s-zhuii-cr~ a... a: or ". chool f; porting facilities.
( cont'd) tourist promotion indefinite grants, loans, tax
concessions and other inducements.
International Airport at Townsville
establishment of National Parks service and proposals
re Australian Alps and Central Australian wilderness area.
" encouragement" for cheap airline holidays within
Australia entry of tourist commission into business activities.
LAW AND ORDER appointment of ombudsman
mandatory publication of Covernment information
improved training, pay, conditions etc. of Commonwealth
Police Force.
ABORIGINES payment of all legal costs for aborigines
o establishment of Central Australian Aboriginal Reserve
Aboriginal Land Fund: $ 5M P. A. for 10 years
DEFENCE automatic annual adjustment of defence pay allowances
adoption of all D. F. R. B. Committee proposals
appointment of military ombudsman
$ 1,000 re-engagement bonus
benefits for servicemen: war service homes, Repatriation
health benefits, rehabilitation training, scholarships for
children, " generous" allowances for retirement and
resettlement
PRICES Subsidies, tariff changes, etc. to restrain price
increases
NEW COSTS FOR ESTABLISHMENT AND RUNNING OF:
economic planning machinery
permanent expert committee on taxation
price justification tribunal
( expanded activities of) defence standards laboratory,
commonwealth Analyst, C. S. I. R. O.
Australian Schools Commission
Australian nre-Schools Commission
Australian Hospitals Commission / 4
o Ministry of Urban Affairs
SCommonwealth/ State Land DeveloPment Commissions
Inter-State Commission
National Disaster Organisation
Commonwealth Superior Court
SMinistry of Northern Development
Single health insurance body
Secretariat for ( Foreign Takeovers
Commonwealth Serum Laboratory
Commonwealth Arts Council: ( seven) autonomous cultural
bodies Securities and Exchange Commission
o Ministry for Aboriginal Affairs
Aboriginal " conciliation procedures"
Conservation and Construction Commission
Fuel and Energy Commission