Premiers' Conference and Loan Council Meeti g,
28 a-id 2C J Y..
Press Statement_ bvthe 1? rimre Minister
The Australian Government and the State Premiers have
arrived at agreement on the following matters during the discussions
that have taken place;
Welfare Housing The States will enter into a Housing Agreement with the
Australian Government under which the following advances for welfare
housing will be made to the States in 1973-74 amounts allocated by
the States for housing in 1972-73 are shown for comparison:-
Allocations for Welfare Housing
H1ousinf. rby__ Sates 7-d-vance s Increase
1972-73 I9iL/ z-
Sm $ M
N. S. W. 65.7 86.0 30o9
Vic. 39.0 53.5 37.2
Qld. 14.6 17.4 19.2
S. A. 30.0 32.8 9.3
W. A. 15.4 13.0 -15.6
Tas. 8.8 16.0 81o8
Total 173.5 218.7 26.1
Advances for welfare housing will be made outside9 and
in addition to, the borrowing programs approved by the Loan Council
for the States.
Tertiary Education The States have accepted the Australian Government's
offer to take full financial responsibility for financing
tertiary education from 1 January 1974. It has been agreed that
amounts by which additional expenditure by the Australian Government
relieve State Governments of expend( Iitutre th-ey would
otherwise have incurred. should be deducted from the general
purpose funds provided by the Australian Government to the
States. This will mean offsets to the financial assistance
grants for recurrent expenditure on tertiary education, and
offsets to the Loan Council. programmes for capital expenditure.
In 1973-74, only a half-year's expenditure will be
involved. The amount of' the offsets to the financial
assistance grants and the Loan Council programns
and 1974-75 are as follows:-
Offsets for Tertiary Education
S million
Financial Assistance Grants Loan Council Programs
1973-74 1974-75 1973-74 1974-75
N. S. W. 36.4 75.2 11.1 22.0
Vic. 34.8 70.8 10.2 20.3
Qi. 13.5 27.6 3.9 7.8
S. A. 12.0 24.-7 3.8 7.7
W. A. 11.6 24.2 2.7 5.4
Tas. 3.5 7.2 1.1 2.2
Total 111.8 229.7 32.8 65.4
Revenue Assistance for States
The Australian Government, in recognition of' the
States' budgetary problems in 1973-74, agreed to provide
special additional revenue assistance of' $ 25 million, to be
distributed between the States in proportion to the financial
assistance grants payabl~ e under existing legislation.
T t : i ; red a iso tii: 1 t the al( 1i 1, iofll 1 inanc
; Is s i t1v c f II L b1l)\ . to w11este rn . i s ro I : i a in 197* 3 -7]
shiouil reln-ail alat; 56.5) mil i.] ion i u." teiid of bei nt. roduced to
3 nili 1 1 o n provid cd i n ix ist J. n ~ Ije i ii. o n. ' vcs orni
Au: stri.! ia i z to reco-). vc an add i. LI oznal. 1 f-1(, iaol. rrVv raiit ; 11
197* 3-71, the 11: 100111, o1f Wjj hi il 1. h1. c the : subject ofj IN -, tLher
1. 2( i o~ li he uWOi jJ7 A stt. l j: Ssnt r! All Z Ira~ l i o enn nI
TIhe FPl owin t ! A eo qtows est Iatfs o 1 reve I Ier fl'. 11t~ s
pavo~ ldo to the 3 atcas in 1 973-71 ltahiriir into accountf, ie a( dId i. I. 0onal
assisI rice now t; he prowv idfed, a mIld a loilry '[ or oiffset' Oil accountf.
of ter 1,13ry ed'u;, Lion.
P TI E. Li,>' j21: 1i -PA v' 7m TO Q M; 1 973-741
F i 111' Cioa 1 P 1 is \ i( Id i t i. o na 1Le 3 s Lort i a rv, T o~ tal1
Under Kitfr rs' Of fst.!
6 ionh Confie c~ f
i. l o nilon nmillion S mill Io!
601 0 7 -9 3 6. 572.5
V i. 4 5 7. 0 6.0 31.8 12) 8 2
4l 13.-5 3 10.7
209 0 2.8 12.0 19(). 91
219.0 59 ( 1i 11.6 21.-3 .3 ( d)
i; 1S O' 1.0 .23.5 S'
To tal 1 1 ,70 11. 1,813 2 d'( i
The Granl s C. orriss ion h-not Yoet recommended the
amounts ofl t. he spca -r* rm1 raiis fo-r par mont to
rs~ l~ au lid, th AIStr7al I-ia. and Tas~ iin ia I n. 1 ( 17)-7-1
b ) Based on rie Ii iminarv e S LO5~' i 1,11 PCHer cn [. M
111Cr] ' liSo In! wia) e0rc~ In theo ' ear en'lj. TrC] h 11 7; j
~ Lrf) l(( orlc toe n( 000 fl0 0 il t4:~ 1i ts popn. I a t. LC'f
i~ n the rc r( li -' jr. lT D cihr I19O7 ')
c) C o m ri s i. n rP ; n i I1A . ion Lo o( div LIe d in pr).) ortion to
the Finattcial !-Ssi. stIuco ( I'n : 1iO 53 m. i . io n
f'or ' estern Qutn] I osu Liln, -f from retention the
rvid iti onal rant of* 5 il l ion najul in 1972-73.
To i ncrco-sod bY the a''! iou; nl 1, o he( deoter!:! i nd inl the isus a
en the Au stral ian a sto'ri.. \ i! traill i . t fo1! jc1
4 Loan Counc i Programs
The program for the States and their larger
authorities agrced for 1973-74 and approved by the Loan Council
are as follows:-Loan Council Program! s 1973-74
State Governments " Larger"
Grants Borrow i nprs Toal Auth. ori ties( a
mmillion illion million million
86.6 183.1 269.7 199.9
70.8 149.7 220.5 182.7
37.0 78.2 115.2 104.6
37.6 79.6 117.2 27.1
25.8 54.6 80.4 33.2
20.5 43.5 64.0 16.5
278.3 588.7 867.0 564.0
Authorities borrowing over $ 400,000
individ. ually during the year. Total mill ion
469.6 403.2 219.8 144.3 113.6 80.5
1,431 .0
NOTE: The State Governmental programs, as explaine a, ove,
exclude welfare housing advances and are net of
offsets for tertiary education,
29 June 1973
N. S. W.
Vie. Qld. S. A.
V. A.
Tas To tal
EX'PLAkNAVOIY NOTES PREMIERS' CONITF'ETRO MCE
2L, 2,9 June 1973
FUITDS AA~ r: TTLJA YdLE TO THlE STATS IN 1 973-74
The following ta. les supplement the information
pi-ovided in the Prime Minister's press statement.
million 1 97 7-1
E; s t t~ i. atres
o f
V* c m i] !. s e0 r ce r) t
Inc reaE
1 * Finaoc lal ssi st', nce ( rm sUnder
. iXL~ 1T L e-ill. ;' i-LOr
inaki" off!-; ej.: on acecouni-t of'
tertj. cl. 11c~ rbion in 1c73-7.1( a)
2. S31)( ci.;-A Loan fo " ev S'oiit-. aiel s
3 ' Pin3 * AO d ti nuial " reed mt
I rem icr s : c) il ~ 11C 1,16-7.31 t 785 2Oh)
1 28.0
TOTATL ( 3) 1 ,562.3
~ aI'b~ cs ~ p. C n;~ ciiPro' rutli IOes 932.0 6 6( c)
7. hoi c : o.-row
r ro rtn! j
8. T ola1 5) 6) d ( 7)
9. GRANT) 10.1. a nil ( 8) 512.5
1 ,501 1
3,1163.4 1 ,813.2( 5)
867.0 7
56,1.0
1 ,19.7 ( Z
3,462.9
A~ ldTu'> of' : finlsnci 0o f ertia ry
i~ dcitio fxpn'. 2treto the
Aus Lrali,). n i. Government as rom
1 / l1/ 1974 3,163.43, 607 .514.0
The 197'--74 estimates of the finiancial ass-* s5tance ~ r isare.
p I, c eLrnma ry onl1y. I n addition to the financial ssistpAce ; c-rnts
iuoens land. L ii.. 110 Tasriani a rec cived in 1 97:-73
w i 11 -cceivc , nn 1O~ 9; T-7 pel'' i. s on. the r~ comnenduw iion of
the Grants ' Joimiss i ol.
ftrnan offsets oE.-r.: cciint of tertiary, e l catij o n.
c) Advrnces for omor -% nc-v hni!, ing -,, reed. to byr thc fjcve-r)-mmnt 8.4
9.1
10.1 9.9
-1N 1 073_ 7.: ACm--) 21 1 2-73
NOT;-, 1Tli s t~ tblc C-oes not includ~ e -zpecilal 1' ratnts ~ oi~ on
aw~ u Dt~ s eIPo i c, t I r e f'or c r 0 1r soe: i t 1i
: 1 111d. s ' Go ' Oe ', dc t c to th e S L, 1 73-74
6. llmus:. ni,
GENERAL, REV,. ENUE, PAYMENTS TO THE STATES EXCLUDING
SP. CIAL GIRAN'S ( a)
Note: For reasons set out in footnote the percentage
increase in " Total Payments" would not represent
the effective increase in general revenue
assistance available to the States in 1973-74.
This is represented by the percentage increase
after adding the additional assistance and
before deducting Uhe tertiary education offsets.
1972-73 1973-74 Porcentap
Actual. Estimates Increase
million S mil 1ion l
Financial Assistance Grants Under
Existing Legislation 1,647.3 1,897.0( b) 15.2
Special Loan to New South Wa. les 15.0
Plus Additional Assistance Agreed at
Premiers' Conference 28.0
1,662.3 1,925.0 15.8
Less Tertiary Education Offset 111.8
TOTAL PAYMENTS 1,662.3 1,813.2 ( c)
Special grants are supplemontary general revenue
assistance paid on the recommendation of the Grants
Commission. The Grants Commission has not yet
made its recommendation of amounts for payment in
1973-74.' For that reason, these payments are not
included in these tables.
Preliminary estimate.
The tertiary education offsets are equal to the estimated
savings to the States as a result of the Australian
Government's assumption of full responsibility for
financing tertiary education as from 1 January 1974.
That is to say, the arrangements will not result in a
rnet effective reduction in the funds available to the
States. For this reason the percentage increases in
" Total Pavyents" are . ot shown in these tables. The
effective increase in the general revenue payments is
represented by the . percentage increase after adding the
additional assistance and before deducting the tertiary
education offsets.
LL.
Loan Council P'rorrammes State Governmients
N I'i: The following taile is designed to enable the 1973-74
state Government Ioan ' ouncil proorarme to be con. pared
with the 1972-73 iro , ramme, i. ning into e. ccoint the
changed . rrange; ents in respect of housing and tol-rtiary
education. 1972-73 1973-74 Perceintae Increase
3 million illion
Six States
Actual PIrogranmmos 982.0 867.0
Adjustments to make fif'ures
coimp; rable
Allocations for Veelfare
iiousint' from within
Pro! rammes 166.9
( ii) Tertiary .' ducation Offsets 32.8
" Adjusted P'rogramnmes" 815.1 899.8 10.4
In 1973-74 advances to the States for welfare housing
will be made outside the Loan Council programmes.
The 1973-74 Loan Council prograrmes have been reduced by
the estimated savings in State capital expenditures
resulting from the Australian Government's assumption of
full responsibility for financing tertiary education
from 1 January 1974.
The programmes approved for larger State authorities,
with comparisons with the 1972-73 programmes, are shown. in
the following table.
,1972-73 Borrowings
Basic
Programmes( a)
$' 000 BORROWING PROGRALNES FOR LARGER AUTHORITIES
Temporary Allocations $ 1000
175,485( b)
168,776 93,822 25,065 25; 159
15,193
503,500 9,000 9,000 Total $ 1000
175,485 168,776 93,822 25,065 34,159 15,193
512,500 Basic
Pro ( dra) mme s
$' 000
189,949 182,687 101 ,555
27,131 27,233 16,445
545,000 1973-74 Proposed
Permanent Temporary
Addition Allocations
$ 1000
10,000 $ 1000
3,000( c)
6,000( e)
10,0009,000 Total $ 1000
199,949 182,687 104,555 27,131 33,233
-16,445 564,000 Percentage rcc-Tr ease
1973-74 Total
Over
1972-73 Total
13.9 8. 2
11.4 8.2
-2.7 8.2
10.1
Including additional programmes approved in March 1975.
Including permanent addition of $ 10 million.
At its June 1972 meeting the Loan Council approved a special allocation of $ 3 million
for Queensland in 1972-73, for the purpose of financing certain works associated with
beach erosion on the Gold Coast. The borrowing approval was not taken up by the State
in 1972-73 and has been deferred until 1973-74.
S&
The distribution between the States is based on the distribution of the 1972-73 basic
programme. The temporary addition of $ 9 million for which Western Australia was " due" under
arrangements originally discussed at the June 1970 Premiers' Conference/ Loan Council
meeting and as since revised, has been reduced to $ 6. million under arrangements agreed
at this meeting, which also involve additions to the State * srevenu. gar ants.
N. S. W.
Vie. Qld. S. A.
WY. A.
Tas. TOTAL