SPEECH BY THE PRIME MINISTER
THE HON. E. G. WHITLAM, M. P.,
A DINNER OF THE AUSTRALIAN-FARMERS' FEDERATION
HOTEL CANBERRA, TUESDAY 23 OCTOBER 1973
I WELCOME THIS OPPORTUNITY TO ADDRESS ONE OF THE
LARGEST, MOST REPRESENTATIVE AND MOST RESPECTED PRIMARY
PRODUCERS'I ORGANISATIONS IN THIS COUNTRY.
ONE OF THE SIGNAL FEATURES OF YOUR FEDERATION
AND I FIND IT SPECIFIED IN YOUR CONSTITUTION IS YOUR
POLICY OF POLITICAL NEUTRALITY. YOU ARE AFFILIATED WITH
NO POLITICAL PARTY OR SECTIONAL INTEREST. I GIVE YOU CREDIT
FOR RECOGNISING THAT THE TRUE INTFRESTS OF THE PRTMARY
PRODUCER ARE NOT NECESSARILY SERVED BY THE POLITTCAL FORCES
MOST VOCAL, MOST STRIDENT, IN YOUR SUPPORT. Yotj KNOW IT
IS OFTEN SAID THAT WE IN THE LABOR PARTY ARE HOSTILE TO
THE RURAL COMMUNITY: THAT LABOR IS A CITY-8AS~ F) PARTY
DANCING TO THE TUNE OF POWER-HUNGRY UNIONS.
THE FACT IS THAT LABOR IS NEITHER AN' URBAN NOR A RURAL
PARTY, BUT A NATIONAL PARTY. WE ARE A NATITONAL GOVERNMENT,
GUIDED BY NATIONAL CONSIDERATIONS, AND DETERMINED TO
PRODUCE A MORE OPEN, MORE EQUAL, MORE TOLERANT AND MORE
PROSPEROUS SOCIETv THAN WE INHERITED FROM OUR PR[ DFCESS: ORS.
I WANT TO CONVINCE YOU THAT JUST AS THE GOVERNMENT'S INTERESTS
ARE NATIONAL INTERESTS, SO YOUR INTERESTS, THE FARMERS'I INTERESTS,
DEPEND IN THE ULTIMATE ON A BROAD PERCEPTION OF THE NATIONAL GOOD,
.1./ 2
-2AHAS
ANY COUNTRY, ANY STATE, EVER PROSPERED THROUGH A
CONCENTRATION ON ONLY ONE SECTOR OF ITS PEOPLE OR INDUSTRY?
WE USED TO BE OVERWHELMINGLY A PASTORAL ECONOMY; WE ARE A
GREATER NATION TODAY BECAUSE OUR ECONOMY IS MIXED AND DIVERSIFIED.
AND YOU, THE FARMERS, LIKE ALL AUS! TRALIANS, HAVE BENEFITED FROM
THIS GREATER STRENGTH AND DIVERSITYi YOU CAN SEE THIS BY LOOKING
AT THE RURAL ECONOMY ITSELF. YOU ARE LESS DEPENDENT ON THE
RANDOM FORTUNES OF ONE COMMODITY WOOL. MANY A PASTORALIST
HAS BEEN SAVED BY THE BUOYANCY OF THE CATTLE MARKET OR ONE OF
OUR GRAIN MARKETS. TO ADAPT A FAMILIAR PHASE, WHAT IS GOOD
FOR PRIMARY INDUSTRY IS GOOD FOR THE COUNTRY.
I CONFESS THAT NOTHING EXASPERATES ME MORE THAN THIS
BASELESS ACCUSATION THAT LABOR IS AN ANTI-RURAL PARTY. THE
LABOR GOVERNMENT RECONGISES THE GREAT CONTRIBUTION MADE BY THE
RURAL SECTOR TO THE NATIONAL ECONOMY AS A PROVIDER OF FOOD
FOR OUR GROWING POPULATION, AS A PROVIDER OF LARGE EXPORT
SURPLUSES EARNING VALUABLE FOREIGN EXHANGE. RURAL EXPORTS
LAST YEAR ACCOUNTED FOR MORE THAN 50% OF THE VALUE OF OUR EXPORT
EARNINGS, DESPITE THE RISING CONTRIBUTION OF MANUFACTURED GOODS
AND MINERALS TO * THE TRADE BALANCE. ALTHOUGH THE RURA[
POPULATION HAS DECLINED SUBSTANTIALLY IN THE POST-WAR PERIOD$
WITH A LARGE DROP IN THE FARM WORKFORCE, THE PRODUCTIVITY OF
AUSTRALIAN FARMERS HAS EASILY OFFSET THIS TREND. THROUGH
GREATER INVESTMENT IN MACHINERY AND FERTILISERS1 PRODUCTION HAS
CONTINUED TO EXPAND EXCEPT IN YEARS OF DROUGHT, So AUSTRALIAN
FARMERS ARE EFFICIENT FARMERS, AUSTRALIA'S REPUTATION~ ABROAD,
AS A TRADER IN PRIMARY PRODUCTS, IS HIGH. DOES ANYONE SERIOUSLY
BELIEVE THAT WE IN THE LABOR PARTY CAN BE INDIFFERENT OR HOSTILE
TO AN INDUSTRY AS VAST, AS EFFICIENT, AS PRODUCTIVE, AS ESSENTIAL
AS YOURS?
IF WE LOOK BACK ON THE HISTORY OF PRIMAR'. INDUST-T
IN THIS COUNTRY, WE SEE ONE OUTSTANDING FEATURE. I PUT IT
TO YOU THAT TI. CHIEF CHARACTERISTI OF YOUR INDLSTRY,
WHATEVER GOVERNMENT IS IN POWER, IS. ITS VULNERABILITY, IORE
THAN ANY OTHER SECTOR OF THE ECONOMY YOU ARE SUBJECT TO
UNPREDICTABLE AND IMPONDERABLE CIRCUMSTANCES. YOU ARE AT
THE MERCY OF THE SEASONS, AT THE MERCY OF WORLD CURRENCY
REALIGNMENTS, OF FLUCTUATING INTFRI'ATIONAL MARKETS, GLUTS
AND SHORTAGES. CAN YOU HONESTLY SAY THAT THE POLICIES
PURSUED DURING 23 YEARS OF GOVERNMENT BY OUR OPPONENTS
BY YOUR SELF-PROCLAIMED POLITICAL ALLIES HAVE REMOVED
YOUR FUNDAMENTAL PROBLEMS OR GUARANTEED YOU ANY PERMANENT
SECURITY AND PROSPERITY?
JUST THREE YEARS AGO, YOU WILL REMEMBER, FARM INCOMES
IN THIS COUNTRY WERE THE LOWEST IN TERMS OF PURCHASING POWER
SINCE 1944, WHEN DROUGHT AND WAR-TIME CONDITIONS PRODUCED
A QUITE DRASTIC RURAL RECESSION. No GOVERNMEN1, OF COURSE,
AN GUARANTEE YOU IMMUNITY TO ACTS OF2 GoD OR TO INTERNATIONAL
DEVELOPMENTS BEYOND OUR CONTROl.., I MERELY SIIGGEST " HAT
PAST GOVERNMENT POLICIES TOWARDS RURAL INDUSTRY HAVE 4OT
SOLVED YOUR UNDERLYING PROBLEMS, AND IN KANY CASES HAVE SERVED
TO PERPETUATE THEM. 1 1/ 4
-4-
I GIVE YOU AN EXAMPLE, IN THE LAST 30 YEARS,
GOVERNMENTS HAVE POURED SOME $ 77 " MILLION INTO THE DAIRY
INDUSTRY BY WAY OF BOUNTIES, -THESE BOUNTIES HAVE DONE
NOTHING TO SOLVE THE INDUSTRY'S MAdOR PROBLEM THE ADJUSTMENT
OF FARM PRODUCTION LEVELS TO REALISTIC LOCAL AND OVERSEAS
DEMAND, BY FAVOURING THE WEALTHIER PRODUCER AND THE RICHER
DAIRYING STATES, THEY HAVE DONE LITTLE TO IMPROVE THE LOT
OF SMALL DAIRY FARMERS, MANY OF WHOM ARE REPRESENTED IN
YOUR FEDERATION, THIRTEEN YEARS AGO, AN INDEPENDENT
COMMITTEE APPOINTED BY OUR PREDECESSORS UNANIMOUSLY
RECOMMENDED THE ABOLITION OF THE DAIRY SUBSIDY, THAT
RECOMMENDATION WAS IGNORED, WHAT BETTER TIME TO PHASE OUT
THIS SUBSIDY THAN NOW, WHEN RETURNS IN THE MAJOR ALTERNATIVE
ENTERPRISE THAT OF BEEF PRODUCTION ARE AT RECORD LEVELS,
AND WHEN THE LONG-TERM PROSPECTS IN THAT INDUSTRY ARE
REGARDED AS HIGHLY PROMISING? DON'T FORGET THAT IN
CONSULTATION WITH. THE INDUSTRY AND STATE AUTHORITIES, WE ARE
EXAMINING THE BEST MEANS OF PROVIDING RE-ADJUSTMENT
ASSISTANCE WHILE THE BOUNTIES ARE PHASED OUT,
I GIVE YOU ANOTHER EXAMPLE OF UNFAIR AND
SELF-DEFEATING CONCESSIONS TO THE RURAL SECTOR, IN THE
BUDGET THIS YEAR WE LOOKED CRITICALLY AT A NUMBER OF TAX
CONCESSIONS RECEIVED BY FARMERS, WE FOUND THAT THESE
CONCESSIONS MADE LITTLE REAL SENSE FROM YOUR LONG-TERM
POINT OF VIE1W, OR FROM THE COMMUNITY'S POINi: OF VIEW,
I REMIND YOU THAT A CONCESSION TO ONE GROUP OF 1AXPAYERS CAN
BE MADE ONLY AT THE EXPENSE OF TAXPAYERS GENERALLY; IT IS
GOOD GOVERNMENT PRACTICE TO LOOK AT THESE THINGS CRITICALLY
t
FROM TIME TO TIME, WE FOUND THAT SOME TAX CONCESSIONS
FARMERS WERE RECEIVING WERE DESIGNED TO ENCOURAGE FARM
INVESTMENT, THEY WERE INTRODUCED, IN THE MAIN, IN THE
DECADE AFTER WORLD WAR II WHEN AUSTRALIA WAS CRITICALLY SHORT
OF FOREIGN EXCHANGE RESERVES AND WHEN THERE WAS AN URGENT
NATIONAL NEED TO EXPAND EXPORTS, CONDITIONS HAVE, OF COURSE,
CHANGED DRAMATICALLY SINCE THEN, OUR EXPORT INCOMES ARE
HIGH AND RISING; OUR INTERNATIONAL RESERVES ARE NEAR RECORD
LEVELS LEVELS UNDREAMT OF 3 OR 4 YEARS AGO. IN THESE
VASTLY ALTERED CIRCUMSTANCES, ARTIFICIAL BOOSTS TO FARM
INVESTMENT AND EXPORT PRODUCTION MAKE, QUITE SIMPLY, LITTLE
OR NO ECONOMIC SENSE, THIS DOES NOT MEAN THAT WE CAN IGNORE
THE VITAL IMPORTANCE OF ECONOMICALLY HEALTHY AND EFFICIENT
INDUSTRIES, IT SIMPLY MEANS THAT IT NO LONGER PAYS US AS
A NATION TO DEVELOP FARMS MORE RAPIDLY THAN IT WOULD PAY YOU
YOURSELVES TO DEVELOP THEM,
IN THIS CONTEXT, IT IS IMPORTANT TO CONSIDER THE
CURRENT HEALTH OF THE RURAL SECTOR, WORLD DEMAND HAS
INCREASED SHARPLY FOR MOST OF AUSTRALIA'S EXPORT COMMODITIES,
ESPECIALLY WOOL AND MEAT, THE BUREAU OF AGRICULTURAL
ECONOMICS HAS ESTIMATED NET FARM INCOME IN 1972-73 AT A
RECORD LEVEL OF $ 1,880 MILLION, A RISE OF $ 744 MILLION OVER
THE YEAR BEFORE, PRELIMINARY ESTIMATES FOR 1973-74 SHOW A
NET FARM INCOME OF $ 2,865 MILLION, UP 52% OF 1972-73, ,/ 6
-6-
THE BUREAU'S PRELIMINARY ESTIMATE OF THE GROSS VALUE OF
RURAL PRODUCTION IN 1973-74 IS A" MASSIVE FIGURE OF $ 6,110
MILLION MORE THAN $ 1,000 MILLION GREATER THAN THE PAST
YEAR, AT THE SAME TIME THE RATE O'INCREASE IN RURAL DEBTS
IS SLACKENING OFF, AND FARMERS ARE REPAYING THEIR EXISTING
DEBTS MORE QUICKLY. HIGHER FARM INCOMES HAVE ENABLED MANY
FARMERS TO REPAY THEIR DEBTS; AND THIS, COMBINED WITH
BUOYANT AND RISING PRICES, HAS MADE THE FARMING COMMUNITY
MORE PROSPEROUS TODAY THAN AT ANY TIME SINCE WORLD WAR II,
Now I DON'T WANT TO MAKE TOO MUCH OF THIS. IN MANY
WAYS IT IS FORTUITOUS, JUST AS YOUR RECENT RECESSION WAS
FORTUITOUS; AND AS I HAVE ARGUED ALREADY, THE INHERENT
CHARACTERISTIC OF YOUR INDUSTRY IS ITS PATTERN OF INSTABILITY,
I SUGGEST, HOWEVER, THAT YOUR CURRENT OVERALL PROSPERITY
PRESENTS A GOOD OPPORTUNITY TO MAKE FARMING MORE OF A
COMMERCIAL ENTERPRISE, MORE VIABLE, MORE EFFICIENT, MORE
SECURE, MORE FLEXIBLE AND RESPONSIVE TO MARKET TRENDS, WE
ARE OPPOSED TO OPEN-ENDED COMMITMENTS WHICH PLACE NO LIMIT
ON TREASURY ALLOCATIONS AND SUBSIDIES AND WHICH CAST ThE
FARMERS, IN THE EYES OF THE COMMUNITY AT LARGE, AS A
MENDICANT CLASS, HEEDLESS OF SOUND BUSINESS PRACTICE AND
DEPENDENT ON THE TAXPAYERS' CHARITY$ I GIVE YOU MY ASSURANCE
THAT THE GOVERNMENT WILL CONTINUE TO ASSIST PRIMARY INDUSTRY,
BECAUSE YOUR CONTINUED PROSPERITY IS ESSENTIAL TO US ALL, . BUT
OUR ASSISTANCE WILL BE GEARED TO NATIONAL INTERESTS AND NEEDS,
,/ 7
7-
THE GREAT INSTRUMENT FOR DIRECTING GOVERNMENT
ASSISTANCE TO RURAL INDUSTRY WILL BE-OUR INDUSTRY ASSISTANCE
COMMISSION. As YOU KNOW, THIS IS BEING SET UP ON THE
BASIS OF A REPORT FROM SIR JOHN CRAWFORD IN ORDER TO
SUBJECT CALLS FOR ASSISTANCE TO ALL INDUSTRIES, INCLUDING
RURAL INDUSTRY, TO REGULAR INDEPENDENT AND PUBLIC SCRUTINY.
IN THIS CONNECTION, I COMMEND THE FULL AND GENEROUS SUPPORT
I HAVE RECEIVED FROM YOUR ORGANISATION ON THIS ISSUE. YOU
RECOGNISED QUITE FRANKLY THAT SUCH A COMMISSION MIGHT,
ON OCCASIONS, WORK AGAINST THE SHORT-TERM INTEREST OF ONE
OF YOUR INDUSTRILS, BUT THAT REGULAR, INDEPENDENT PUBLIC
SCRUTINY OF ALL ASSISTANCE PROPOSALS WILL, IN THE LONG RUN,
BENEFIT MOST ECONOMIC PRODUCERS AND ALL OF US AS CONSUMERS
AND AS TAXPAYERS. THAT IS A. REALISTIC AND SENSIBLE APPRAOCH, BUT IT
IS NOT, I GATHER, THE APPROACH TAKE' BY THE COUNTRY PARTY,
THEY SEEM TO THINK THEY KNOW BETTER THAN YOU, THE FARMERSi
WHAT IS GOOD FOR THE FARMING COMMUNIV. THIS MAY NOT BE THE
PLACE TO SPECULATE ON THE COUNTRY PARTY'S MOTIVES,, BUT I MUST
DISCOUNT THE SUGGESTION THAT THEIR APPROACH TO THIS MEASURE
HAS ANYTHING TO DO WITH THEIR PLANS TO COINTEST CITY ELECTORATES.
I CANNOT BELIEVE FOR A MOMENT THAT THEY ARE MORE INTERESTED IN
WINNING SUPPORT AMONG CITY MANUFACTURERS ' TIAN IN FLIFTHERING THE
INTERESTS OF COUNTRY PEOPLE. I LEAVE TIIOS ; F UESTIONS TO YOU)
YOU KNOW THE COUNTRY PARTY BETTER THAN I DO. J NOTICE) HIOWEVER,
MR. ANTHONY'S STATEMENT THAT THE COMMISSIOiJ WILL USLhZP THE
GOVERNMENT'S AUTHORITY. I ,/ 8
-8-
HE SUGGESTS THAT THE COMMISSION WILL BE SO POWERFUL THAT NO
GOVERNMENT WILL BE ABLE TO REJECT ITS ADVICE, COMING FROM
A MEMBER OF GOVERNMENT THAT REJECTED ADVICE, AND CONCEALED
ADVICE, ON INNUMERABLE OCCASIONS'-I FIND THAT HARD TO ACCEPT,
IT IS, OF COURSE, A FANTASY, IT IS INTENDED TO CREATE
DOUBT AND UNCERTAINTY ABOUT PROPOSAS-THAT ARE IN FACT
QUITE CLEAR AND HAVE BEEN SPELT OUT-IN OUR LEGISLATION IN
PRECISE DETAIL, THE HEART OF THE LEGISLATION IS THE SO-CALLED
MANDATORY REFERENCE PROVISION. THIS REQUIRES THE GOVERNMENT
TO REFER TO THE COMMISSION FOR INQUIRY AND REPORT ALL QUESTIONS
OF ASSISTANCE TO A PARTICULAR PRIMARY OR SECONDARY INDUSTRY
BEFORE TAKING ACTION TO PROVIDE SUCH ASSISTANCE. THE MANDATORY
REFERENCE PROVISION PROVIDES A VITAL SAFEGUARD TO THE
INTEGRITY OF THE GENERAL SYSTEM, WHEREBY THE GOVERNMENT
DECIDES ON THE DIFFERENT AMOUNTS OF MONEY TO BE GIVEN TO
PARTICULAR INDUSTRIES, IT ENSURES THAT THE SYSTEM FOR
DISCRIMINATING BETWEEN DIFFERENT INDUSTRIES WILL BE OBJECTIVE
AND IMPARTIAL. IN THE ABSENCE OF THIS PROVISION THERE WOULD
BE VERY GREAT PRESSURE ON PARLIAMENTARIANS, AND IN PARTICULAR
ON MINISTERS, TO HAVE LEVELS OF ASSISTANCE DECIDED BEHIND
CLOSED DOORS WITHOUT PUBLIC INQUIRY, CONTRARY TO THE
PRINCIPLES OF OPEN GOVERNMENT AND THE INTERESTS OF CONSUMERS, ,/ 9
Twl ViwwFroy PW~ VI S ION DOES NOT RESTR IWr TWf
GovE~ wr'IsSF REEDOM~ TO M~ AKE ACROS-S-ThE-BOARD AWUSIEVTS
OF TARIFFS AWO OThER ASSISTANCE, iTV EXTEND FREFEPRMArIAL
" MEArTMEtIT TO DEVELOP I t4fr COU NT RI FS OR -TO NEGOI VATE7 CHA G ES
IN4 LEVELS OF ASSISTANCE FOA THE PUJRPOSE OF INTEERNATIONAL
TRADE AGREEMENTS.-IT DOES NOT R ESTR ICT THE GO) VERN~ T'S
ABILITY TO PROVIDE URGE14T TEMPORARY FINANCIAL ASS ISTAN4CE
TO INDUSTRIES FOR PERIODS NOT EXCEEDIIG ' TWELVE, M OWi* HS.
TolE 6OVENME4T wiLL-BrE AELE-TO REiPER To ThdE Commiss tON
THE QAESTION Of 4SSISTAWE TO Atty AuSTRALIAtI INDUSTRYj
AN I MjAKING, ITS INQUIRY THE C0144ISSION WILL BE FREE
TO C014SIDER AND REPORT ON ALL FORM4S OF ASSISTANCE WICk
T4E INDUSTRY INd QUESTION IS RECEIVING. IN CASES WERE
ASSISTANCE HAS BEEN UNCHANGED OR UNREVIEWED FOR AT LEAST
SIX YEARS, THE COMMISSION WILL BE ABLE TO INITIATE lWUIRE%
THIS WILL BE A SAFEGUARD A6AINST THE~ fIDEFINITE CDWA&'& jVU~ tW0A/-
OF ASSISTANCE TO PARTICULAR INDUSTRIES AFrEA 17 IS twEDEP
IREMIND) YOU THAT TWl GOVERIW1EPJT iv) LL STILL HAVE
AVAIJLABLE TO IT SOURCES OF ADVI CE 6TIER rorHE-Comm& is otv
THIS ADVICE WILL COME FRom INDUSTRIES ') F-IENSELXESj q~ f r-Ror
INDUSTRY ASSOCIATIONS SUCH AS ' YOURSi IF Tih6ApVICE 0, F rHb
COMMISS ION IS S0 GOOD THAT IT CANINOT 867 RWECTIP' IHAT119
WILL SURELY BE IN TWf JNTERETSTS OF Tif W/ f1l"#/ AS A WN0C3L
J F THE ADVICE IS NO# 07,, Ir SHOULD NOT WE VERY HAA4) l-o
RIEJECT. I MIEELY 14OI4DER k~ HETER OUR~ OPPONENTS AR~ E IN~ TEREST Ej,
IN GM1ING? GOOD ADVICE AT ALL.
OUR LEGISLATION FOR THE INDUSTR, ASSISTANCE COMMISSION
WILL NOT AFFECT OUR PLANS FOR RURAL RECONSTRUCTION. W4E WILL,
HOWEVER, BE GUIDED BY ADVICE FROM THE COMMISSION. AFTER A
REVIEW OF THE RURAL RECONSTRUCTION SCHEME THIS YEAR, THE
GOVERNMENT DECIDED TO CONTINUE THE* SCH . EME UNTIL 1976, BUT WITH
MORE EMPHASIS BEING PLACED ON THE BUILD-UP OF UNECONOMIC FARM
UNITS. MORE THAN $ 47 MILLION WAS INCLUDED IN THE BUDGET FOR
EXPENDITURE IN THE CURRENT FINANCIAL YEAR. AN IMPORTANT PART
OF THE SCHEME IS THE REHABILITATION OF NEEDY FARMERS WHO WISH
TO LEAVE THE LAND. THE DEPARTMENT OF PRIMARY INDUSTRY IS
EXAMINING PROPOSALS FOR A MORE IMAGINATIVE AND CONSTRUCTIVE
PROVISION IN THIS REGARD, SIMILARLY, THE FRUITGROWING
RECONSTRUCTION SCHEME, WHICH IS DESIGNED TO HELP FRUITGROWERS
IN FINANCIAL DIFFICULTIES TO REMOVE SOME OR ALL OF THEIR TREES
AND EITHER LEAVE THE INDUSTRY OR PUT THEIR LAND TO AN
ALTERNATIVE USE, HAS BEEN EXTENDED FOR ANOTHER YEAR AT AN
ESTIMATED COST OF $ 2 MILLION.
IN THIS CONTEXT, THERE IS ONE PARTICULAR BUDGET MEASURE
THAT I WANT TO EXPLAIN TO You. As YOU KNOW, WE DECIDED TO
REMOVE THE EXEMPTION FROM SALES TAX ON CARBONATED SOFT-DR! NKS
CONTAINING 5% OR MORE OF AUSTRALIAN FRUIT JUICE. THIS DECISION
WAS TAKEN BECAUSE SUCH EXEMPTION WAS THE WRONG INSTRUMENT FOR
ENLARGING THE FRUITGROWER'I S MARKET. ONLY A FRACTION OF THE $ 23
MILLION A YEAR WHICH THE EXEMPTION COST THE GOVERNMENT WAS
RETURNED TO THE GROWER. IASSURE YOU THAT WHILE ASOLISHING THE
EXEMPTION THE GOVERNMENT IS READY TO PROVIDE FIJNDS TO ASSIST
ANY SECTOR OF THE FRUITGROWING INDUSTRY THAT MAY BE ADVERSELY
AFFECTED. THIS HELP WILL PROVIDE MORE LASTING BENEFIT THAN THE
SALES-TAX EXEMPTION WHICH REQUIRES CONTINUING SUBVENTIONS BY
THE TAXPAYER. ./ 11
11
WE. HAVE TAKEN OTHER MEASURES TO ASSIST RURAL
INDUSTRIES. AN AMOUNT OF $ 20 MILLION WAS PROVIDED IN THE
BUDGET TO FACILITATE LONG-TERM RURAL LENDING BY THE
COMMONWEALTH DEVELOPMENT BANK FQR A WIDER. RANGE OF PURPOSES.
THEY INCLUDE THE FINANCING OF FARM PORCHASES, REPAYMENT OF
SHORT-TERM DEBTS IN APPROPRIATE CASES, AND ASSISTANCE IN CASES
OF FINANCIAL DIFFICULTY ASSOCIATED WITH THE DEATH OF A FARM
PROPRIETOR, OUTSIDE THE BUDGET ITSELF, THE GOVERNMENT HAS TAKEN
A WHOLE SERIES. OF DECISIONS THAT WILL BENEFIT THE FARMER. IN
OUR EARLY DAYS, WE SHOWED OURSELVES. READY TO RESPOND TO THE
URGENT NEED TO ENCOURAGE WHEAT PRODUCTION. WE NOT ONLY
ACCEPTED A DELIVERY QUOTA OF 514 MILLION BUSHELS THE HIGHEST
OP RECORD.-BUT ADDED A " FLOATING POOL" OF 20 MILLION BUSHELS
ON TOP OF THAT, READY FOR ANY STATE THAT.. EXCEEDED ITS PORTION
OF THE NATIONAL QUOTA. WE INCREASED THE FIRST ADVANCE PAYMENT
ON WHEAT FROM $ 1.10 TO $ 1.20 A BUSHEL FOR THE NEXT HARVEST.
THIS WAS THE FIRST INCREASE IN THE ADVANCE FOR 15 YEARS.
Wœ EHAVE ALSO AGREED TO AN IMMEDIATE PAYMENT OF A SECOND ADVANCE
ON THE 1969-70 CROP. OUR INITIATIVESIN QUICKLY ESTABLISHING
DIPLOMATIC RELATIONS-WITH CHINA HAVE BEEN WELCOMED BY THE
. AUSTRALIAN WHEAT INDUSTRY. As YOU KNOW, THE MINISTER FOR
OVERSEAS TRADE, DR. JIM CAIRNSj RECENTLY ANNOUNCED OUR FIRST
LONG-TERM WHEAT CONTRACT WITH CHINA. THE DEPARTMENT OF
PRIMARY INDUSTRY IS NOW WORKING ON A NEW WHEAT* STABILISATION
PLAN TO REPLACE THE ONE-YEAR EXTENSION OF THE CURRENT PLAN.
WE HOPE TO IMPROVE THE PROVISIONS FOR STABILISATION.
r"
THEN 7tH-RE WERE OUR TARIFF CUTS, IN JULY 1973
T* HVE GOVERNMENT REDUCED ALL TARIFF RATES By 257 TO ALLOW
IMPORTS TO EN4TER AUSTRALIA MORE CHEAPLY. IBELIEVE
PRIMARY PRODUCERS WILL REAP SIGNIFICANT BENEFITS FROM THE
TARIFF CUT. IN PARTICULAR IT IS EXPECTED-TO REDUCE THE
PRICE OF A WIDE RANGE OF FARM MACHINERY. ' IT WILL REDUCE
TO SOME EXTENT THE NEED FOR AN ADDITIONAL REVALUATION
OF THE DOLLAR, AND WILL HELP PRIMARY PRODUCERS BY RESTRAINING
THE RATE OF INFLATION AND HENCE THE COST OF LABOUR EMPLOYED
IN PRIMARY INDUSTRY.
IASK YOU TO REMEMBER THAT ItN ANY PERIOD OF INFLATION
THERE ARE DIFFICULT PROBLEMS FOR ALL DEMOCRATICALLY ELECTED
GOVERNMENTS. IT IS NO ACCIDENT THAT THOSE IN CHARGE OF
NATIONAL AFFAIRS DURING INFLATIONARY PERIODS OFTEN BECOME
SOMEWHAT UNPOPULAR. TO ACT RESPONSIBLY THEY MUST REDUCE
THE COMMUNITY'IS LEVEL OF SPENDING IN ONE WAY OR ANOTHER.
THEY MUST BRING IT CLOSER TO THE COMMUNITY'S CAPACITY TO
PRODUCE OR IMPORT GOODS AND SERVICES. REDUCING ANYONE'S
SPa NDING IS NOT THE BEST WAY TO COURT POPULARITY YET IT
MUST BE DONE IN THE INTERESTS OF RESPONSIBLE ECONOMIC
MANAGEMENT. THE PRESENT INFLATIONARY PERIOD IS IN MANY WAYS
REMINISCENT OF THE WOOL BOOM IN THE EARLY 1950O'S, AT THAT
TIME SIR ARTHUR FADDEN THEN LEADER OF THE AIJSTRALIAN
COUNTRY PARTY AND TREASURER FOUND IT NECESSARY TO INTRODUCE
THE WOOL SALES DEDUCTION TAX, UNDER WHICH WAS DEDUCTED
FROM EACH GRAZIER I'S WOO&~ CHEQUE.
13
A; YOU MIGHT EXPECT, THIS DIDN'T MAKE ARTIE FADDEN THE MOST
POPULAR MAN IN THE BUSH. I QUOTE FROM HIS AUTOBIOGRAPHY:
" CRITICISM OF THIS DECISION ROLLED IN LIKE A TIDAL WAVE,
BACKED BY HOSTILE RESOLUTIONS FROM BRANCHES,. CANCELLED
MEMBERSHIP SUBSCRIPTIONS AND DEMANDS FOR MY EXPULSION."
I AM SOMETIMES RELIEVED THAT I BELONG TO SUCH A GENTLEMANLY
BODY AS THE AUSTRALIAN LABOR PARTY.
I MENTION THESE MATTERS TO ILLUSTRATE MY POINT THAT
DEMOCRATICALLY ELECTED GOVERNMENTS ARE SOMETIMES FORCED BY
CIRCUMSTANCES TO TAKE UNPOPULAR DECISIONS DECISIONS WHICH.
THEY BELIEVETO BE IN THE BEST INTERESTS OF THE NATION. IT
IS EASY, AT THE PRESENT TIME, TO DEPICT US AS AN ANTI-RURAL
PARTY, TO CONCENTRATE ON THE UNPOPULAR DECISIONS WHICH WE
AVE FELT IT NECESSARY TO TAKE IN THE GENERAL INTEREST, AND
CONVENIENTLY IGNORE THOSE THINGS WE HAVE DONE WHICH
HAVE HELPED THE COUNTRYMAN.
AS A GOVERNMENT WE STAND READY TO HELP AUSTRALIANS
' IV ARE SUFFERING MISFORTUNES WHERE EVERI THEY MAY LIVE ON
FAAINS, IN COUNTRY TOWNS OR IN THE CITIES. IF THE FARMING
COMMUNITY IS AGAIN EXPOSED TO ECONOMIC HARDSHIPS WE WILL R"
PREPARED TO PLAY OUR PART IN HELPING-INDIVIDUALS TO MAKE
THE BEST AND MOST RATIONAL CHOICES AND, IF NECESSARY, CUSHION
THEM AGAINST ECONOMIC ADVERSITY, WE HAVE qLWAYS VOTED FOR
SUCH POLICIES WHEN WE WERE IN OPPOSITION; WE WILL ADOPT 1& EM
IF NECESSARY NOW THAT WE FORM THE GOVERNMENT. IN FEBRUARY TH( S
YEAR WE ANNOUNCED PROPOSALS COSTING $ 10 MILLION TO HELP CHILPA E
IN ISOLATED RURAL AREAS UNDERTAKE PRIMARY AND SECONDARY SCHOOLING.
/ 14
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PERHAPS I CAN SUM UP MY GOVERNMENT'S BROAD INTENTIONS
BY QUOTING A STATEMENT BY THE AUSTRALIAN WOOLGROWERS' AND
GRAZIERS' COUNCIL, THE COUNCIL HAP THIS TO SAY: " THE MOST
IMPORTANT LONG-TERM STEP THE GOVERNMENT CAN TAKE IS TO
IMPROVE THE EFFICIENCY OF NATIONAL RESOURCE ALLOCATION BY
ENCOURAGING THE EXPANSION OF LESS PROTECTED INDUSTRIES IN THE
ECONOMY ( WHETHER PRIMARY OR SECONDARY) AND DISCOURAGING THE
GROWTH OF THOSE INDUSTRIES WHICH CAN ONLY PRODUCE WITH THE
HELP OF MASSIVE LEVELS OF ASSISTANCE EITHER SUBSIDY OR
TARIFF. THIS WILL INCREASE THE LEVEL OF REAL ECONOMIC GROWTH
FOR THE BETTERMENT OF THE WHOLE COMMUNITY,"
I SUGGEST THAT THE GOVERNMENT, IN THE INTERESTS
OF THE COMMUNITY AS A WHOLE, IS DOING JUST WHAT THE WOOLGROWERS'
AND GRAZIERS' COUNCIL SUGGESTED. I BELIEVE THAT OUR POLICIES
WILL BENEFIT, NOT ONLY THE GREAT FARMING COMMUNITY OF THIS
NATION, BUT THE AUSTRALIAN PEOPLE AS A WHOLE.
-o-o-o-0-o-o-o-