. AEBAGO: Not for publication or broadcast before 6.30 p. m. on
Sunday, 26th February. 1961..
MAJOR PROJECTS TO ASSIST THE EXPORT TRADE
Statement by the Acting Prime Minister ( Mr. McEwven).
The Acting Prime Minister today said that the decision
by the Commonwealth to discuss with State Governments the plannil
of largo-scale developmental vorks, was an important stop in a
programme designed to assist in the expansion of Australia's
export trade. He vas referring to the announcement by the Prime
Minister that the Gove-nment had under particular and
sympathetic consideration large ontcrpriscs such as road
development in the North; improved port and loading facilities
to assist the coal export trade; standardization of the rail
links in South Australia and . cstcrn , ustralia; and proposals to
stimulate the discovery of oil and minerals generally.
Mr. McEwen-rrcallcd the twin objectives of the
Government in its current policies-were to put. abhrake on
inflation and, at the same time, place a new sense of urgncy-on---
policies aimed at the substantial expansion of export earnings.
^ s one important step towards avoiding recurring
balance of payments difficulties, it is the Government's aim to
give the national development effort a pronounced bent towards
the expansion of our export trade.
Against this background the Government has considered
certain problems associated with the expansion of exports of
beef, minerals, coal and steel, all of which are important
commodities in any long-range plan to increase total exports.
Large-scale developments will be needed to exploit the full
-export potential of these industries in which the investment of
the private capital needed to increase production for export is
dependent to a very important degree on the provision of largescale
public works.
In this field the Commonwealth is prepared, where
necessary, to devise special financial arrangements to encourage
projects on rhich export expansion depends, especially when the
projects are of such size as to place them beyond the resources
of a single State.
The Prime Minister announced that the Government would
discuss road development in the North with the appropriate
Governments. The Commonwealth has had the benefit of surveys and
advice on this particular issue. These suggest that road
developments in this area could trigger-off an expansion of
private investment in the beef industry and give an important
stimulus to the beef exports. Additional exports of œ 15m./œ 20m.
are in prospect from this industry and the first results could
be-obtained within. very--few-years
There were very good prospects that coal exports -could
earn upwards of œ 10m. a year by 1965 if the inadequacy of coal-
2.
loading and berthing facilities in the jor export ports is
remedied. We were competing for business in Japan against
countries which had highly mechanized and extremely modern loadirg
facilities on berths which could accommodate the very large ore
carriers which Japanese buyers plan to use for coal transportation.
State Governments and the industry are giving
attention to this problem. The Commonwealth proposes to discuss
rith the State Authority whether some assistance from the
Commonwealth may be necessary to enable these installations,
which are so vital to the future of the coal export field, to be
completed in time to enable the industry to renew the long-term
contracts on which its export trade depends.
In the Prime Minister's statement on thd 3rd January,
he indicated that attention would be given to the special
position of steel as an export carncr. Discussions had already
taken place with the steelmakers and, at this stage, there
appear excellent prospects of the steel industry making further
very sizeable contributions to import savings and to export
earnings within very few years. To do so, the industry will need
to expand its production considerably and an integral part of its
overall expansion plans is the development of an additional
steelmaking centre in WJestern Australia. The industry has
stated that the development of a steelmaking plant at Krinana is
dependent on the standnrdization of the rail link between
Kalgoorlie and the Coast.
The Government has been asked to provide special
assistance for the construction of this standard gauge line from
Kalgoorlie and is considering this request, particularly in
light of the benefits which this might bring to the expansion of
steel and mineral exports.
In addition to undertaking discussions with the Western
Australian Government on the Kalgoorlic-Fremantle rail link, the
Commonwealth is considering a request to assist in the
standardization ( including the provision of modern rolling stock)
of the Broken Hill/ Port Pirie rail link. Mr. McEven said that
the freight economies which would be expected to flow from the
standardization and dieselization of this line could assist the
Broken Hill producers to compete more effectively on
increasingly competitive world markets.
The Prime Minister had stated that the Commonwealth
will proceed with discussions with State Governments on the
planning of such selected projects. Although no substantial
funds can be provided from the Treasury in the near future, the
Government is nevertheless convinced that some projects of
economic development, especially those vhich will make an
important contribution to our export capabilities, should proceed
as soon as the economic situation permits.
By planning now, the way should be clear in 1962 for
such projects to proceed as would substantially assist to expand
our export earnings.
Mr. clc67v sid tht these importarnt decisions yore
further steps in the Goverrnnt's progrnmc to cnsure a
substartial and a continuous increase ir J-ustria's export
earnings. Works of the types rcferred to wr o n csscrtial prerequisite
to the large private ir. vcstmcnt viaich the Govcernont
is ccrfidient 17ill floG, as a result, into these important
industries and rhich will contribute substantially to the desired
increase in our expnort ear: iings.
oTB1BRRI 26th Februry, 1961.