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PRIME MONISTER
THE PRIME MINISTER'S PRESS CONFERENCE
PARLIAMENT HOUSE, CANBERRA
TUESDAY, 28 AUGUST 1973
. I AU TSAA Lc
PRIME MINISTER PRESS STATEMENT NO. 119
28 August 1973
CABINET ANNOUNCEMENTS BY THE PRIME MINISTER AT HIS PRESS
CONFERENCE, CANBERRA, 28 AUGUST 1973
APPOINTMENTS The Executive Council this afternoon
approved the following appointments:
Mr. Alan Renouf Secretary of the Department
of Foreign Affairs
Mr. R. J. Hawke Member of the roerd o-the
Reserve Bank of Australia
Mr. A. C. Woods Acting Secretary of the
Department of Secondary Industry.
SECOND AIRPORT The Department of Urban and Regional Development
has recommended the Galston sub-region as the
site of the second airport for Sydney.
Cabinet has asked the Commonwealth-State
Committee on a Second Sydney Airport to
formulate a strategic plan for the Galston
sub-region which:
establishes a land use plan for the
integration of airport development with
existing and potential uses and presents
a means of implementing this plan;
identifies transportation requirements
generated by airport and other activities
and presents a satisfactory means of
accommodating these; examines opportunities for reducing the
extent and intensity of noise annoyance
arising from the airport and of mitigating
the effects of such noise.
The Comritt, 2 consists of representatives of
the Treasury and the Departments of Urban and Regional
Development, Civil Aviation, Works and Services and
Property, the N. S. W. Departments of Transport and Main
Roads and the State Planning Authority of N. S. W.
Mr. Jones will give you further details.
AUSTRALIAN INDUSTRY DEVELOPMENT CORPORATIC:: Cabinet has
approved a submission from the Treasurer and the Minister
for Overseas Trade and Secondary Industry for the reform and
enlargement of the A. I. D. C. The broad effect of our changes
will be to enable the A. I. D. C. to finance Australian
ownership of industry, to extend its operations to
manufacturing, mining and resource development, and to
remove the restrictions limiting its participation to
temporary minority holdings. Some details cf our
proposals have already been released by Dr. Cairns.
Further details will be available from his office.
FEDERAL CODE OF EVIDENCE On the recomjn : idation of the
Economic Committee, Cabinet has approved th, preparation
of legislation for a federal code of evidence to be applied
by federal courts and, if possible also, State courts
exercising federal jurisdiction.
CONSUMER STANDARDS
Committee, Cabinet
Interim Commission
staff of six. On the recommendation -f the Economic
has approved the establi.*-nnt of an
for Consumer Standards, 71.. orted by a
The functions of the Interim C., rdnission will be
to exercise principal reni.,. sibility for
co-ordination of Australian Government action
in the development of uniform standard; for
consumer products, including advisory and
policy functions in relation to Codex
Alimentarius and Commonwealth Food Standards,
but not including standards based on health
criteria on drugs and goods, that would
remain the responsibility of the Prpartment
of Health. ./ 3
/ 2
( ii) to arrange for meetings of Commonwealth
and State officials to discuss consumer
matters, and to provide a secretariat for
appropriate meetings that may be arranged
of Commonwealth and State Ministers on
standards for consumer products and
related matters.
Cabinet approved the provision of $ 200,000 in
1973/ 74 for the Interim Commission.
It agreed that there should be consultation among
intei. sted Departments, particularly the Departments of the
Attorney-General, Health, Primary Industry and Science,
regarding the detailed administrative arrangements involved.
It noted that the Interim Commission, and
subsequently the Commission, will be responsible for
determining standards for consumer products which might be
used for prescribing minimum standards under the Consumer
Protection legislation, being prepared by the Attorney-General.
EXPORT BANK On the recommendation of the Economic Committee,
Cabinet has agreed to the establishment of an Export Bank.
The Minister for Overseas Trade and Secondary Industry and the
Treasurer will arrange details of the necessary legislative
and institutional changes. They will consider the most
appropriate means of providing Government guaranteed loan
funds for an Export Bank.
Cabinet instructed the Inter-departmental Committee
on Export Banking Facilities to reconvene, with the addition of
the Attorney-General's Department, to recommend to the
Treasurer and the Minister how best to achieve these objectives.
Ministers agreed to examine the charter of the
Export Payments Insurance Corporation with the possibility
of amending the charter to enable the Corporation to function
as a Government Export Bank to provide
export finance especially but not only
beyond 5 years for machinery and capital
equipment;
( ii) lines of credit especially to developing
countries and state-trading organisations.
PAPUA NEW GUINEA OVERSEAS DORROWINGS Cabinet authorised
legislation on the recommendation of the Economic Committee,
to provide for contractual guarantees by the Australian
Government of overseas borrowings in 1973/ 74 by the Papua
New Guinea Government in foreign currencies not exceeding
the equivalent of $ A24 million. Such guarantees would be
subject to the terms and conditions of the proposed loans
being satisfactory to the Treasurer and the Minister for
External Territories. POLLUTION OF THE SEA Cabinet has decided that Australia
should legislate to give effect to 171 amendments to the
Convention for the Prevention of Pollution of the Sea by oil.
The amendments, adopted on Australia's initiative, will prevent
the discharge of oil near the Great Barrier Eeef. Telegrams
have been sent to the Premiers advising them of our decision,
further details of % hich are available from my Press Office.
REVALUATION ASSISTArC. On the reco mcndation of the Fconomic
Committee, Cabinet ayreed that the Inter-dcepartmental Committee
set up on 10 April 1973 be asked to process applications for
adjustment assistance in accordance with the criteria then
adopted by the Cabinct. It agreed on certain cdfiniticns for
the handling of such applications, details which ire
available from my press office.
WORKEPS' COMPENSATION On the recommendation of the Economic
Committee, Cabinet has agreed that the income tax law be
amended to require companies or persons liable to pay periodical
workers' conpensation ( or accident pay) to deduct instalments
of income ta:: from the payments in the same way as cmployers
are obliged to deduct tax from salaries and wages paiit to their
employees. The amendment will apply to pa\ nents made during
or after the month following that in which the amending Bill
is assented to.
INCOME TAX ON COMPANIES Cabinet has agreed to an amendment
in the law on the status of companies for income tax purposes,
details of which are available from the Treasurer.
CONVENTION ON DUMPING OF WASTES AT SEA As announced by the
Minister for Transport, Cabinet has agreed that Australia should
immediately sign the International Convention on the Dumping
of Wastes at Sea.
NAVIGATION ACT Cabinet has decided on rn amendment to the
Navigation Act concerning off-shore vessels, details of which
are available from the Minister for Transport.
FEASIBILITY STUDIES Cabinet has authorised the establishment
of a fund to pay for feasibility studies in developing countries.
It will be known as the Consulting Services Feasibility Study
Fund. The studies would be undertaken by-Australian orofessicnal
engineers, architects, planners, surveyors, agricultural
consultants, and so on. Dr. Cairns' office will have dt. tails
of this proposal.
MISCELLANEOUS Cabinet has decided to repeal the High
Commissioner ( United Kingdom) Act, amend the Audit Act ana
legislate for an Institute of Legislative Drafting.
VISIT TO JAPAN I have accepted an invitation from the
Japanese Government to make an official visit to Japan from
26 to 31 October. I have issued separate press statements
about this visit, about Mr. Renouf's appointment and about
the motor industry.
/ 4 CANBERRA, A. C. T.
QUESTION: Do you believe that your new policy on the automotive
industry will produce a cheaper car and a better car?
PRIME MINISTER: Both.
QU.' STION: What effect do you think the decision to allow the
J3.) anese to enter the market will have? Do you think we can
sui-port another car manufacturer or another two car
maniifacturers? œ P : KE : IINISTER: I would think that Japanese types of cars
l i cei: tainly be desirable because of their size, their
economy, their safety. There is reason to hope that the
Japane-se companies would be more flexible in terms of
location and Australian participation.
QUESTION: Will you table or release the Consultants report on
which tne second airport decision in Sydney was based?
PRIME MINISTER: When this one is received, I expect so. I
won't give an undertaking but I would expect we will release
it. QUESTION: Supplementary to a matter you mentioned a moment ago,
you said you had reason to hope that Japanese manufacturers
would be more amenable towards location and Australian equity.
Have they given some indication in this regard?
PRI1. E MINISTER: There have been discussions between the
Department of Secondary Industry and the Japanese companies in
the last eight weeks.
QUESTION: Have they indicated what level of Australian
participation or equity they would agree to?
PRIE MINISTER: I haven't been party to the discussions.
You had better get them from Dr Cairns.
QUESTION: Is there any desire to influence the Japanese
manufacturers to move into the growth centres like Albury-Wodonga?
PRIME MINISTER: That would be a very welcome initiative by
them. Borg-Warner, as you know, already operates in Aibury/
Wodonga. There is, therefore, a very considerable component
industry already in that location. I would imagine that any
further automotive industries in Albury/ Wodonga would be very
well situated indeed. Albury/ Wodonga is an excellent
distribution centre.
QUESTION: The Coombs Report said that the tax deductibility of
life assurance and superannuation premiums was both unfair and
also pretty pointless. We now find that the A. I. D. C. scheme
is to be fairly closely nailed into these tax deductibility
provisions. Does this mean that we will be locked into the
life assurance deductions for quite some time? PRIME MINISTER: You read the Policy Speech and you will see
that that was forecast.
QUESTION: Is the Government going to change the composition
of the Board of the D. C.?
PRIME MINISTER: It nasn't been considered. I don't believe
that the amendments that we are proposing provides for an
amendment to the Board, but you had better ask Dr Cairns or
Mr Crean for the details there.
QUESTION: Could you tell me whether t. e are any cihanges
planned for the provisions made for audi' the A. I. D. C.' s
accounts? PRIME MINISTER: I don't think this was considered but ask
them for the details. I don't remember tat.
QUESTION: In view of the confirmation by the Attor.. ey-General
of the existence of the Melbourne Minute Men or Secret Seventy
or Black Friday Movement or whatever, howe\ er you describe
the vigilante force which has set itself . p in Melbourne, can
you tell us whether this disturbes you at all; can you tell
us if you intend to do anything about it; and, in particular,
can you tell us if in view of ASIO's apparent participation
in the early stages of this group if you are quite hanpy that
ASIO can, if you like, be trusted to -cep t-em uror
surveillance and to report honestly to tin Gvernment on their
activities? PRIME MINISTER: I think ASIO has made improvements but
I am considering the general situation o' Australian
Government's intelligence services. As yj,. realise, it is not
the practice to go into any details on tLcese matters, and I
have had to tell you that beforehand, al. predecessors have
told you, so I don't have to repeat it.
QUESTION: Mr Prime Minister, since Ott-a a ave you had any
messages of goodwill from Mr Lee Kuan Ye:" c: Mr Heath and,
furthermore, would you regard your inter-hmnges with them at
Ottawa as tart and unfriendly or would you rather thinh, as
they have been described, or would you rzther think ti. . t they
were directed straight at Mr Heath on multi-nationals
particularly? PRIME MINISTER: I have got no more to say on this at all, and
it is quite false to give any impression that the Commonwealth
Conference was at all engaged for any length of time of such
bilateral matters.
QUESTION: You said that the existence of this private spy
force in Melbourne disturbes you
PRIME MINISTER: I won't say any more on it. I don't answer
questions on security matters
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QUESTION: But I don't want to ask you about that in particular,
Prime Minister, I want to ask you whether or not you saw any
parallel between that and the Secret Government which
Dr Jonn Burton says existed in that intelligence sort of system
under the last Labor Government?
PRIME MINISTER: I don't want to say any more about this.
QUESTION: In is policy speech on the Budget, Mr Crean said
that interest on home loans would become deductible from the
Ist July next year but he didn't give details. Can we presume
from that that the rate of deductibility and the scale of wages
that it applies to will be the same as that pledged by you
during the campaign?
PRIME MINISTER: There might be some adjustments because of
changes in average incomes since then but there will be a
graduated scale of deductions.
QUESTION: Sir, pollution from these nuclear tests. Can you
tell us which has been the worst, the Chinese or the French,
and, in fact, has there been any substantial evidence of
fall-out at all from either?
PRIME MINISTER: At this stage, there is evidence of fall-out
from the French tests and not from the Chinese tests. I haven't
looked into this for a few days, maybe a week, but at last
inquiry that was the position.
QUESTION: Anything to worry about?
PRIME MINISTER: I believe all fall-out is something to worry
about. QUESTION: Can you tell us why you are not prepared to discuss
ASIO with the representatives of the Australian media when
you will talk about it at length with a visiting Pom?
PRIME MINISTER: Mr Forst didn't ask questions as to what we
would be doing in future or that sort of thing. I adhere to
what I believe is the proper policy of not discussing what is
to be done about security services.
QUESTION: I think this comes within the area that Mr Frost
raised. There is an obvious conflict of reporting between what
Mr Darbour says occurred at the Lodge on March 17 and your own
repudiation, a repudiation which Mr Barbour confirms. In the
light of the fact that Mr Barbour's reports must have considerable
effect on the career of public servants, have you taken any
steps to see that the reporting of ASIO is improved?
PRIME MINISTER: There was an earlier instance of an ASIO report
which was inaccurate concerning other public servants. This
was a specific instance and you know how I acted. QUESTION: Does this mean you will act in the same way in
this case?
PRIME MINISTER: If there are any specific instances there
was no involved in any of the reports which I saw on this
subject. QUESTIOI: I thought you were involved, Sir?
PRIKE !..' irTTRER: Yes, well that's been disposed of hasn't it?
QUESTI',:: . ay I ask why you do not regard this incident as
speci f:
PRI. lE M,!' I-STER: I will not pursue questions and answers on
tni. Thctr is still a Senate Committee enquiring into
these r., ice rs.
QUESTIC:;.: Sir, you refer to multi-nationals. Do you see any
connection between the steady decline in the Stock Exchanges
of Australia and the multi-nationals and their investors in
Australia? PRIME M: INISTER: I'm not an expert on the Stock Exchange movements
and I don't have a comment to offer on t. iat.
QUESTION: You were asked a question earlier on the Goiston
Gorge. PRIME MINISTER: No, the Galston sub-region.
QUESTIONER: Yes, well that's right. What you said was that you
were going to get a report on the Galston sub-region. Now,
Mr Edwards asked, and if he didn't, what I would like to ask
is will you release the feasibility study which says Sydney needs
a second airport, not the one w. hich is going to come about
after they have looked at Galston, but why we have to go out
of Mascot to Galston?
PRIME MINISTER: The only report which has
been about Mascot. As we all know, Mascot
to anybody within range of it, so there is
that. been made so far has
is not acceptable
no point in pursuing
QUESTION: Prime Minister, can I ask you what happens as far
as our post in Paris is concerned now that you are appointing
Mr Renouf as the Secretary of the Department. Do you plan to
replace Australia's ambassador to Paris and, if so, when?
PRIME MINISTER: I'm not sure when, but it will be fairly soon.
QUESTION: The post is vacant at the moment though, isn't it?
PRI. ME MINISTER: No, I think he hasn't left there yet. But
clearly there are approaches to be made to the French Government
about any new ambassador and those approaches have not yet
been made.
QUESTION: Mr Whitlam, could I just return to the question
on lascot. You said that it is not acceptable to anyone there.
PRIE MINISTER: Yes. I think it is obvious that no Australian
Government will increase the air movements at Mascot.
QUESTION: The size of the Government investment you are
prepared to write off at this stage because of the social
costs involved.
PRIE !-iINISTER: No, there is no suggestion to write off
the investment in Mascot, but it would not be acceptable to
increase the investment in Mascot in such a way as to make for
more aircraft movements there.
QUESTION: Wdsn't that what Mr Jones suggested, however, Sir?
PRIME ? INISTER: A report wanted a decision on that question
befor: th committee wanted a decision on that question,
about ilascot, before it went on to consider alternative sites.
The decision not. to have Mascot has been made, and we have
asked t. ve committee to consider the site which the Department
uf Urban and regional Development regards as the best.
QUESTION: 1r Whitlam, does that mean that the other sites
whic: h-, are intended to be considered by the Consultants earlier
this year won't now be considered?
PRIt2 1INISTER: They certainly won't be considered until the
repar: on the Galston sub-region is received. If that report
snous that Galston sub-region is satisfactory, then it is
quite like>.' that the other sites will not be considered. There
are three g-. neral objections to other sites. There's the
double ! 4ascot or to install a ncw airport at Tara Point or at
Watta: rolla. Wo all know that the people in the area of those
three airports would not tolerate new airports or a larqcr
airport. Then in general, there are some nites suggested to
the north-west of Sydney. Any of those sites would preclude
the developrient of Sydney as proposed along that north-west
corriclar. Similarly, along the south-west corridor, and this
reall. leaves Galston or maybe Duffy's Forest. But Duffy's Forest
would be too small. If you had a second airport there, before
long you would have to have a third airport. Then there were
some other ones which are surely precluded by distance; like
Somersby or Wyong.
QUESTION: But there are people at Galston as well as Wattamolla,
bu they are Liberal voters? PRIME MINISTER: There are fewer people in the Galston area
than in any other area and Galston doesn't lend itself to the
development such as is proposed by both Australian Government
and State Government authorities in the north-west and the
south-west corridor.
QUESTION: The public are rather perplexed about tie issue of
the costs and benefits of foreign ownership of Australian
resources. The only public document that sets out the case
in any detail was by the Treasury last year which says that
foreign ownership wasn't such a bad thing. Now, in view of
the fact that the Government is going to spend really massive
amounts of money raising Australian control of Australian
resources, is it possible that we could'have a statement setting
out why foreign control is a bad thing?
PRIME MINISTER: I think the increasing proportion of foreign
control is a bad thing. I would think everybody in the Government
accepts that and most of the people in the Opposition too.
There is no doubt that Sir John McEwen and Mr Gorton and, as
well as the Labor Party, would agree that it is undesirable
to have the increase in foreign control that has taken place in
manufacturing industry every since the war particularly, of
course, in automobiles and petrol and chemicals and base
metal and, also which has taken place in the sixties in our
mineral resources.
QUESTION: Can you tell me from what date does Mr Hawke take
up his position on the Reserve Bank Board, whom does he replace,
and whether you can see any areas where conflict of interest
could arise or where, in reverse, he can be of benefit?
PRIME MINISTER: I don't know the date. I would think that
there will be fewer conflicts of interest as far as Mr Hawke
is concerned than as far as any of the other members of the
Board. Mr Hawke, clearly, has economic qualifications superior
to those of pretty well any other non-official member of the
Board except perhaps Professor Bruce Williams.
QUESTION: Are you concerned about the rate of growth of the
Commonwealth Public Service?
PRIME MINISTER: No, I'm told it will be kept to 5 per cent.
This financial year it will be a bit tight but it will be hept
to 5 per cent, so I am advised. There will be some departments
where clearly there will be a drop as in the Defence departments
and some where there will be a smaller increase than 5 per cent
such as Taxation or Customs and Excise. The increases are
mainly in new departments. We are, however, pressing on with
the amalgamation of several departments.
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QUESTION: Have you any comment on Mr Cameron' s view that all
Se-cond Division jobs should be advertised outside the
Public Service?
PRIME MINISTER: It's an interesting thought. I don't preclude
the fact that positions in the Second Division should be open
to outsiders. There are arguments both ways.
QUESTION: You mentioned a series of Bills on off-shore
pol_ 1lution. Is this likely to strengthen your hand on the
Constitutional position in the off-shore resources legislation?
PRIME MINISTER: I would think so.
QUESTION: Will the new Organisation set up under the A. I. D. C.
umbrella place directors on the boards of companies in which
i~ t takes an interest, and will these directors be under the
control of the Australian Parliament or the Cabinet?
PRIME _ MINIFTMR: I think it would be better if you go to Mr Crean
or Dr Cairns for details like this. I don't think this was
discussed. There can be various conditions laid down for
A. I. D. C. participation on buying an existing enterprise or
setting up a new one. To have nominees on the board would seen
a very reasonable proposition, but I don't think this was
-spelt out inl the submission to us or in the decision.
QUESTION: Are you planning a reshuffle or a limited reshuffle
of tne Government.
PR~ IME MINISTER: I'm not sure when. I'll tell you when or if.
QUESTION: Has the Government received the Wool Marketing
Report from the Wool Corporation yet?
PRI. ME MINISTER: No. The Cabinet hasn't considered it.
QUESTION: Some of the new Bills that you have foreshadowedtnere
are some c uite inrportant ones seem-to be based quite
explicitly on the use of the foreign affairs power under our
Constitution to ratify a international agreement or convention.
Do you see any limits to that type of process or would you be
prepared to express a degree of confidence about how the High
Court might treat it under challenge?
PRIME 14INISTER: I would be confident that the Australian
Parliament's constitutional powers in respect'. to external
affairs enable this parliament to pass laws on many more subjects
than it has hitherto. very obviously, matters such as I have
mentioned this afternoon in the maritime field are such matters.
It's one way of overcoming the absurd situation where the
Australian Parliament can't pass laws about shipping in the
course of voyages between a port and another port in the same
State and where the State Parliament concerned can't pass laws
on that subject either except with the approval of the British
Government. Now, there are, increasingly, international
conventions dealing with all these matters, and international conventions can Only be drafted by Australian Government
representatives on behalf of Australia and can only be ratified
by Australian Government representatives on behalf of
Australia. Clearly this is a field where if Australia is to
ensure proper standards as regards navigation or pollution
or, in a related matter, off-shore resources, there -dill be
many more Conventions; there will be many more lawspassed
by the Australian Parliament.
QUESTION: Will you just give us some idea, at this stage,
wiiat you hope can be achieved at the Constitutional Convention
next week?
PRIME MINISTER: I think you ought to wait until next Monday
when I have been asked to address the Convention. I suppose
I can say now, that the matters which I would hope the
Convention would give consideration to next week, are those which
can be done promptly. There are some matters which wouldI
require a referendun. This Parliament can pass a bill for a
referendum and that bill can be put to the people at the next
general election. Secondly, there are many matters upon which
the State Parliaments which they can refer to this Parliament.
And thirdly, there is the very important question of amending
the Financial Agreement of 1927. The Government is committed to
securing a voice and a vote for local government representatives
from each State on the Loan Council. This is a matter which
the Hfeads of Government at next week's Convention couldl agree
to do straight away. I hope they do.
QUESTION: Do you see it very much as a working Convention?
PRIME MINISTER: Yes, I would wan*, something practical to come
out of the Convention. And there would be some matters which
I would be very happy to put to a referendum at the next general
election which must take place before the end of next June.
Secondly, I would be very happy for the State Parliaments,
particularly the big ones, New South Wales and Victoria, to
refer scme matters to the Australian Parliament. And thirdly,
I hope that all seven governments present at the Convention will
agree to amend the Financial Agreement to give a voice and a
vote to the local government representatives from each State
on the Loan Council.