SPEECH BY THE PRIME MINISTER,#
THE [ ION, E. G. WHITLAV1, M. Pe.,
TO THE 43RD CONFERENCE OF THE
INTERNATIONAL WOOL TEXTILE ORGANISATION,
SOUTHERN CROSS HOTEL, MELBOURNE,
MONDAY, 1 APRIL 1974
I AM DELIGHTED THAT AUSTRALIA IS HOST FOR
THE FIRST TIME TO A MEETING OF THE INTERNATIONAL WOOL
TEXTILE ORGANISATION. IN AN INDUSTRY RENOWNED FOR
ITS INTERNATIONAL LINKS AND ORGANISATIONS INDEEDI
CAN THINK OF NO INDUSTRY THAT SURPASSES YOURS IN
THIS RESPECT THE I. W. T. O. IS THE LARGEST AND MOST
IMPORTANT ORGANISATION OF WOOL TRADERS, PROCESSORS
AND TEXTILE MANUFACTURERS IN THE WORLD. YOU REPRESENT
26 NATIONS IN EVERY HEMISPHERE, IN EVERY CONTINENT.
IT IS APPROPRIATE THAT AUSTRALIA, AS THE WORLD'S
LARGEST PRODUCER OF WOOL, SHOULD BE THE VENUE FOR
YOUR CONFERENCE. YOUR ORGANISATION HAS BEEN IN
EXISTENCE FOR NEARLY HALF A CENTURY, YET IT WAS ONLY
IN THE LATE 1950' S THAT AUSTRALIA BECAME A FIRM MEMBER.
SO WE HAVE NORMALIZED OUR RELATIONS WITH THE I. W. T. O.
I AM GLAD WE HAVE; AND IF I MAY SAY SO, IT IS HIGH
TIME YOU WERE HERE AS OUR GUESTS, ON BEHALF OF THE
AUSTRALIAN GOVERNMENT I WELCOME YOU ALL MOST CORDIALLY.
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THERE IS ANOTHER REASON WHY THIS CONFERENCE
SHOULD BRING SPECIAL SATISFACTION TO THE WOOL INDUSTRY IN
AUSTRALIA, NOTHING COULD SYMBOLIZE MORE VIVIDLY THE VITALITY
AND RESILIENCE OF THIS GREAT INDUSTRY IN ALL ITS PHASES,
PRODUCTION, MANUFACTURING AND MARKETING, I HARDLY NEED
REMIND YOU OF THE GLOOM AND FOREBODING IN THE AUSTRALIAN
WOOL INDUSTRY ONLY TWO OR THREE YEARS AGO, MANY WOOLGROWERS
WERE LEAVING THE LAND, MANY OF THE HISTORIC NAMES, PLACES
AND COMPANIES IN THE INDUSTRY WERE IN JEOPARDY, DECLINING
PRICES, COMBINED WITH THE EVER-PRESENT HAZARD OF DROUGHT,
WERE TAKING THEIR TOLL, TODAY THE PROSPECTS ARE MUCH
BRIGHTER; THE INDUSTRY HAS RECOVERED ITS TRADITIONAL
CONFIDENCE, I BELIEVE YOUR CONFERENCE WILL REFLECT AND
STIMULATE THE NEW MOOD OF BUOYANCY AND OPTIMISM IN THE
INDUSTRY, IT WILL REMIND US THAT NATURAL WOOL REMAINS THE
SUPREME FIBRE, AND WHATEVER THE PROBLEMS AND FLUCTUATIONS
YOUR INDUSTRY MUST FACE, ITS UNDERLYING STRENGTH IS BEYOND
QUESTION. P/ 3
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You ARE ALL AWARE OF THE SUPREME IMPORTANCE
OF WOOL IN THE HISTORY AND ECONOMIC DEVELOPMENT OF THIS
COUNTRY, DESPITE A GREATER DIVERSITY IN AUSTRALIA'S EXPORTS
AND A GREATER DIVERSITY OF PRODUCTION WITHIN PRIMARY INDUSTRY
ITSELF, WOOL STILL HOLDS ITS PLACE AS A COMMODITY OF
ENORMOUS IMPORTANCE, ALTHOUGH SHEEP NUMBERS HAVE DECLINED
MARKEDLY IN RECENT YEARS, AUSTRALIA PRODUCES ABOUT ONE-THIRD
OF ALL THE WORLD'S WOOL AND ABOUT HALF OF THE SUPPLIES
ENTERING WORLD TRADE, OUR OWN WOOL TEXTILE INDUSTRY IS
OF CONSIDERABLE SIGNIFICANCE, THEWOOL YARN AND
BROADWOVEN FABRIC INDUSTRY PRODUCES GOODS WORTH $ 129 MILLION
A YEAR AND EMPLOYS MORE THAN 12,000 PEOPLE, NEVERTHELESS,
ABOUT 90% OF OUR WOOL IS EXPORTED, CLEARLY WE HAVE A
VITAL INTEREST IN THE PROSPERITY OF THE WOOL TEXTILE
INDUSTRY OVERSEAS, WOOL PRODUCERS AND WOOL USERS HAVE A
COMMON INTEREST, THEY HAVE THE SAME ULTIMATE CONCERN FOR
THE SUPREMACY OF THEIR BASIC RAW MATERIAL AND THE GROWTH
OF WORLD MARKETS, I BELIEVE THIS CONFERENCE WILL GIVE
ALL OF US SUPPLIERS, PROCESSORS, MANUFACTURERS AN
OPPORTUNITY FOR DIRECT AND VALUABLE PERSONAL CONTACTS
WHICH WILL BENEFIT THE INDUSTRY AS A WHOLE, / 4
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WHAT I FIND ENCOURAGING IN THE AIMS AND
FUNCTIONS OF YOUR ORGANISATION IS THE EMPHASIS YOU GIVE
TO ORDERLY MARKETING, YOU SEEK TO BRING A PLANNED AND
RATIONAL APPROACH TO THE WORLD TRADE IN WOOL, YOU
PROVIDE A COMMON MEETING POINT FOR COMMERCIAL WOOL
INTERESTS AND ENCOURAGE UNIFORM COMMERCIAL PRACTICES
IN THE WOOL TRADE, THE AUSTRALIAN GOVERNMENT SHARES
THOSE AMBITIONS AND APPLAUDS THEM, WE RECOGNISE
YOUR NATURAL INTEREST IN THE WAY RAW WOOL IS MARKETED
HERE IN AUSTRALIA, FOR THAT REASON WE HAVE MADE USE
OF MEETINGS OF YOUR ORGANISATION TO EXPLAIN THE GOVERNMENT'S
WOOL RESERVE PRICE POLICY TO THE INTERNATIONAL WOOL TRADE,
WE INTEND ALSO, AS YOU KNOW, TO ESTABLISH A NATIONAL
AUSTRALIAN WOOL STANDARDS MONITORING UNIT; AND THE
VALUE AND PURPOSE OF THAT UNIT HAS BEEN EXPLAINED AT
SESSIONS OF YOUR ORGANISATION,
IT WILL HELP YOU IF I SAY SOMETHING MORE ABOUT
OUR PLANS FOR WOOL MARKETING IN AUSTRALIA, FOR YEARS THE
WOOL INDUSTRY HAS BEEN SUBJECT TO FLUCTUATING MARKETS AND
UNCERTAIN PRICES, OUR PREDECESSORS REQUESTED THE
AUSTRALIAN WOOL CORPORATION TO REPORT ON THE WOOL
MARKETING SYSTEM, WE RECEIVED THEIR REPORT IN FEBRUARY
AND IMMEDIATELY'MADE IT PUBLIC, THE OPPORTUNITY NOW
EXISTS FOR A FULL AND OPEN PUBLIC DISCUSSION OF THE
REPORT BY ALL INTERESTED PARTIES, BRIEFLY, AS MANY OF
YOU WILL KNOW, THE REPORT RECOMMENDED THAT THE. lWOOL
CORPORATION ACQUIRE ALL EXPORT WOOL AND SELL IT IN
THE WAY IT THINKS BEST EITHER AT AUCTION OR UNDER
CONTRACT; THAT THE CORPORATION HAVE POWER TO ALLOCATE
AMOUNTS OF WOOL TO BE SOLD; AND THAT IT SHOULD STABILIZE
THE PRICE OF WOOL BY ESTABLISHING A FLOOR PRICE OR EVEN
A CEILING PRICE WHERE NECESSARY, THESE RECOMMENDATIONS
ARE BROADLY CONSISTENT WITH THE POLICY OF THE
AUSTRALIAN LABOR PARTY, WHICH STATES THAT THE WOOL
CORPORATION " WILL BE EMPOWERED TO ACQUIRE AND/ OR
MARKET THE AUSTRALIAN WOOL CLIP,"
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THE CORPORATION'S REPORT IS NATURALLY A
CONTROVERSIAL ONE, MANY PEOPLE HAVE CONGRATULATED
THE CORPORATION ON THE WORK IT HAS DONE; OTHERS
HAVE BEEN HIGHLY CRITICAL, IT WOULD NOT BE
APPROPRIATE FOR ME TO DISCUSS THE DETAILS OF THE
REPORT TODAY, IT IS CLEARLY RECOGNISED THAT ITS
IMPLICATIONS ARE FAR REACHING AND IF IMPLEMENTED
WOULD CHANGE SIGNIFICANTLY THE TRADITIONAL
AUSTRALIAN WOOL MARKETING SYSTEM, THE RECOMMENDATIONS
ARE BEING CLOSELY EXAMINED BY MY COLLEAGUE, THE
MINISTER FOR PRIMARY INDUSTRY, SENATOR WRIEDT, AND
INTERESTED PARTIES CONCERNED WITH WOOL MARKETING,
SENATOR WRIEDT HAS MADE IT CLEAR THAT, JUST AS HE HAD
NO INTENTION OF HURRYING THE CORPORATION INTO COMPLETING
ITS REPORT, HE HAS NO INTENTION OF HURRYING A DECISION
UPON IT UNTIL EVERYONE HAS STUDIED IT CAREFULLY, s17
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SENATOR WRIEDT HAS ALREADY DISCUSSED THE
REPORT WITH REPRESENTATIVES OF WOOLGROWERS, WOOLBUYERS
AND WOOLBROKERS. HE WILL BE KEEN TO LEARN OF THE
REACTION OF YOUR ORGANISATION AS AN INTERNATIONAL BODY
REPRESENTING THE WOOL INDUSTRY. I EXPECT THE GOVERNMENT
TO DECIDE ITS POLICY ON THE REPORT LATER THIS YEAR AFTER
SENATOR WRIEDT BRINGS PROPOSALS BEFORE THE CABINET,
WE HOPE THE NEW ARRANGEMENTS WILL OPERATE FROM THE MIDDLE
OF NEXT YEAR. I AM SURE SENATOR WRIEDT'S SUBMISSIONS
WILL TAKE ACCOUNT OF THE VIEWS OF ALL THOSE WHO HAVE
DISCUSSIONS WITH HIM. I URGE YOU TO ENSURE THAT HE
RECEIVES YOUR REACTIONS, AT THE SAME TIME, I HOPE
THE DEBATE ON THE MOST APPROPRIATE WOOL MARKETING SYSTEM
WILL NOT BE BASED ON THE SELF-INTEREST OF INDUSTRY GROUPS
BUT WILL BE DIRECTED AT ENSURING THE FUTURE ECONOMIC
STABILITY OF ALL CONCERNED, FROM WOOLGROWERS TO FINAL
PROCESSORS. / 8
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THERE IS ANOTHER WAY IN WHICH THE GOVERNMENT
CAN ASSIST THE LONG-TERM WELFARE OF THIS GREAT INDUSTRY,
THAT IS BY ENCOURAGING WOOL RESEARCH AND PROMOTION,
MY GOVERNMENT HAS ANNOUNCED A THREE-YEAR SCHEME FOR
THIS PURPOSE BEGINNING IN 1974-75 WE WILL CONTRIBUTE
$ 61,400,000 OVER THE THREE YEARS, I AM GLAD TO SAY
THAT LEGISLATION FOR THIS PROGRAM WAS INTRODUCED IN
THE PARLIAMENT LAST MONTH, BROADLY OUR PURPOSE IS
THAT THE GOVERNMENT SHOULD ASSUME GREATER FINANCIAL
RESPONSIBILITY FOR RESEARCH, WHICH BENEFITS THE NATION
TO'T
AS A WHOLE) AND T44E GROWERS FUNDS, COLLECTED THROUGH
THE WOOL TAX, WILL BE DIRECTED MORE TOWARDS PROMOTION,
THE BUDGETS FOR PROGRAMS OF RESEARCH AND PROMOTION FOR
EACH OF THE 3 YEARS COMMENCING IN 1974-75 HAVE BEEN
DEVELOPED IN CONSULTATION WITH THE AUSTRALIAN WOOL
CORPORATION AND, THROUGH THE CORPORATION, WITH THE
INTERNATIONAL WOOL SECRETARIAT, WITH THE COMMONWEALTH
SCIENTIFIC AND INDUSTRIAL RESEARCH ORGANISATION, AND
WITH THE BUREAU OF AGRICULTURAL ECONOMICS,
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WE BELIEVE THAT WHILE RURAL PRODUCERS BENEFIT
DIRECTLY FROM MANY OF THE RESULTS OF RURAL RESEARCH, THE
AUSTRALIAN COMMUNITY IN GENERAL ALSO BENEFITS IN MANY
WAYS, BENEFITS ACCRUE, FOR EXAMPLE, THROUGH MORE
ASSURED FOOD AND FIBRE SUPPLIES AS A RESULT OF
PRODUCTIVITY INCREASES IN THE RURAL SECTOR, FURTHER,
RESEARCH PROGRAMS IN AGRICULTURAL AND BIOLOGICAL SCIENCES
OFTEN HAVE BROAD IMPLICATIONS FOR THE QUALITY OF THE
ENVIRONMENT GENERALLY, AND FOR THE MAINTENANCE OF THE
PRODUCTIVE CAPACITY OF RENEWABLE RESOURCES,
RECOGNISING THAT THE BENEFITS OF RESEARCH ARE SO
WIDELY DISTRIBUTED, THE GOVERNMENT HAS DECIDED THAT IT WOULD
BE APPROPRIATE FOR A GREATER SHARE OF THE COST TO BE BORNE
BY A CONTRIBUTION FROM PUBLIC FUNDS THAN HAS BEEN THE
CASE IN THE PAST, IN OTHER WORDS, THE GOVERNMENT HAS
DECIDED TO INCREASE ITS SHARE OF THE COST OF THE RESEARCH
PROGRAMS FINANCED FROM THE WOOL RESEARCH TRUST FUND,
ACCORDINGLY, THE GOVERNMENT WILL CONTRIBUTE THREE QUARTERS
OF THE COST OF APPROVED PROGRAMS OF WOOL RESEARCH, TO BE
FINANCED THROUGH THE. WOOL RESEARCH TRUST FUND, DURING THE
SECOND AND THIRD YEARS OF THE FORTHCOMING TRIENNIUM,
WOOL PRODUCERS WILL BE ASKED TO FINANCE THE REMAINING ONE
QUARTER, IN ORDER THAT THERE IS ADEQUATE WARNING OF
THESE CHANGED ARRANGEMENTS, THE PRESENT COST SHARING
ARRANGEMENT WILL BE CONTINUED FOR 1974-75, .1./ 10
10
WITH REGARD TO WOOL PROMOTION, THE GOVERNMENT HAS
CAREFULLY STUDIED THE PROMOTION ACTIVITIES OF THE
INTERNATIONAL WOOL SECRETARIAT AND THE AUSTRALIAN WOOL
CORPORATION, IT IS AGREED THAT THERE ARE STRONG ECONOMIC
ARGUMENTS IN FAVOUR OF WOOL PROMOTION EXPENDITURE AND THE
BENEFITS OF PROMOTION DO SPREAD TO GROUPS OTHER THAN
WOOL GROWERS, IN ADDITION, THE GOVERNMENT RECOGNISES
THE NEED FOR CONTINUAL DEVELOPMENT AND IMPROVEMENT OF
THE TECHNICAL PROCESSING PROPERTIES OF WOOL AS A FIBRE AND
THE PROMOTION OF THESE ADVANTAGES AT ALL STAGES IN THE
MARKETING CHAIN, IN THIS WAY THE DEMAND FOR WOOL IS
INFLUENCED, BOTH ABSOLUTELY AND IN RELATION TO COMPEToING
FIBRES, WE BELIEVE, HOWEVER, THAT THE BENEFITS FROM
PROMOTION ACCRUE MORE DIRECTLY TO PRODUCERS THAN TO
OTHER MEMBERS OF THE COMMUNITY, AND ACCORDINGLY WOOL
GROWERS THEMSELVES SHOULD MAKE THE MAJOR FINANCIAL
COMMITMENT TO PROMOTION EXPENDITURE, ON THIS BASIS
THE GOVERNMENT HAS DECIDED TO FINANCE ONE QUARTER OF
THE PROJECTED WOOL PROMOTION BUDGETS, LEAVING TO WOOL
GROWERS THE RESPONSIBILITY OF FINANCING THE BALANCE,
AGAIN, IN ORDER TO ENSURE ADEQUATE ADVANCE NOTICE OF
THE CHANGED ARRANGEMENTS FOR FINANCING THE PROMOTION
PROGRAMS, THE GOVERNMENT HAS AGREED TO DEFER IMPLEMENTATION
OF THE NEW FUNDING BASIS UNTIL 1975-76, ACCORDINGLY, FOR
1974-75 THE GOVERNMENT WILL CONTINUE TO CONTRIBUTE ON AN
EQUAL BASIS WITH WOOL GROWERS TOWARDS THE COST OF BOTH
RESEARCH AND PROMOTION, I ./ 11
11
AUSTRALIA IS FULLY COMMITTED TO THE GROWTH AND
PROSPERITY OF THE WOOL INDUSTRY, WE WANT TO REMAIN A
DEPENDABLE SUPPLIER OF WOOL TO THE MARKETS OF THE WORLD,
WE WANT FAIR PRICES FOR OUR WOOL AND A STABLE SYSTEM
OF MARKETING, THIS INDEED IS OUR POLICY FOR THE SUPPLY
OF ALL BASIC RAW MATERIALS TO OUR CUSTOMERS OVERSEAS,
WE BELIEVE THAT THE AUSTRALIAN WOOL INDUSTRY WILL
PROSPER BEST IN THE CONTEXT OF STRONG RURAL INDUSTRIES
GENERALLY, ALL OUR POLICIES HAVE BEEN DIRECTED TO THAT
PURPOSE, OUR CURRENCY REVALUATIONS AND TARIFF POLICIES
HAVE, I BELIEVE, HELPED TO RESTRAIN INCREASES IN THE COST
OF FARM EQUIPMENT, OUR INDUSTRIES ASSISTANCE COMMISSION
HAS BEEN SET UP TO EXAMINE CLAIMS FOR ASSISTANCE FROM
ALL INDUSTRIES PRIMARY AND SECONDARY, WE WANT RURAL
INDUSTRIES THAT CAN STAND ON THEIR OWN FEET, THAT ARE
STRONG AND ADAPTABLE, THAT ARE BUSINESSLIKE AND
EFFICIENT, THAT CAN MEET THE CHALLENGE OF UNCERTAIN
MARKETS AND FLUCTUATING PRICES WITHOUT RELYING
EXCESSIVELY ON GOVERNMENT HANDOUTS AND TAXPAYERS'
SUBSIDIES, ONLY IN THIS WAY CAN WE CREATE GENUINELY
STRONG AND EFFICIENT RURAL INDUSTRIES, A1
11A
PERHAPS I CAN SUM UP MY GOVERNMENT'S
BROAD INTENTIONS BY QUOTING A STATEMENT BY THE
AUSTRALIAN WOOLGROWERS' AND GRAZIERS' COUNCIL,
THE COUNCIL HAS SAID THIS: " 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 IS DOING JUST WHAT THE WOOLGROWERS'
AND GRAZIERS' COUNCIL SUGGESTED, I BELIEVE OUR
POLICIES WILL BENEFIT THE GREAT RURAL INDUSTRIES
OF THIS COUNTRY AND THE AUSTRALIAN PEOPLE AS A WHOLE, / 12
12
WE HAVE GREAT FAITH IN THE FUTURE OF THE WOOL
INDUSTRY, WE ARE DELIGHTED THAT SO MANY OF ITS
LEADING MEMBERS AUSTRALIA'S GREATEST CUSTOMERS
ARE WITH US THIS WEEK, GOVERNMENTS AND ECONOMISTS
ALONE CANNOT SOLVE THE PROBLEMS OF AN INDUSTRY OR
UNDERSTAND THEM AS WELL AS THE MEN AND WOMEN
DIRECTLY INVOLVED, THERE IS NO SUBSTITUTE FOR
PERSONAL CONTACTS BETWEEN INDIVIDUALS IN REACHING
UNDERSTANDINGS AND CREATING THE CONDITIONS FOR
GENUINE AND LASTING PROGRESS, I WISH YOU EVERY
SUCCESS IN YOUR IMPORTANT DISCUSSIONS AND HAVE GREAT
PLEASURE IN DECLARING OPEN THE 43RD INTERNATIONAL
CONFERENCE OF THE INTERNATIONAL WOOL TEXTILE ORGANISATION,