SPEECH NOTES FOR 1WPRIM'E MIiNISTER F
PERTH-LUNCNEON-MEETING 2 KAY 1974
Or ALL T HE ISSUES THAT HAVE EMERGED DURING
THIS CAMPAIGN THE GREATEST OF THEM INVOLVES THIS BASIC
QUESTION: WILL AUST. RALLANS CONTINUE TO CONTROL THEIRj
OWN ECONOMIC DESTINY OR ARE W'E TO BECOME TENANTS IN
OUR OWN LAND? SEVENTEEN MONTHS APO IPUT TO THE AuSTRALIAN
PEOPLE CERTAIN PROPOSALS DESIGNED TO REVERSE THE
INSIDIOUS PROCESS BY WHICH THE PREVIOUS GOVERNMENT
ALLOWED CONTROL OF OUR ECONOMIC DESTINY TO PASS OUT
OF OUR HANDS. THE POLICIES OF THE OPPOSITION IN THIS 1
tRE SPECT SHOW NO REAL CHANGE, THIS ELECTION M1AY WELL B3E
THE LAST OCCASION ON wHicH AUSTRALIANS ARE ABLE TO CHOOSE
THEIR FUTURE COURSE, ' TO CONSERVE AN INDEPENDENT ECONOMIC
INHERITANCE FOR OUR CHILDREN AND OUR CHILDREN' S CHILDREN$
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WH-EN THE AUSTRAL IAN LAnOR PARTY WAS [ N Oo p IPOSITION
PREPARED AND PRESENTED CERTAIN POLICIES BASED ON A BELIEF.
AT AUSTRALIANS; COULD, AND INDEED MUST,. CONTROL THEIR'BASIC
NDUSTRIES AND RESOURCES. LET' ME SAY TI[ S,, WE HAVE NOW HAD
/ EXPERI-ENCE OF GOVERNMENT., WfE.. A1AVE HAD ' ACCESS TO THEEXETS
AND THE INFORMATION AVAILABLE 1TO' GOVERNMENTS I AND ALL* OF'A
* MY-MINISTERS, HAVE BROADENED OUR EXPERIENCE, EXTENDED OUR
KJOLDGEAND HORIz'ON31 IY C fIWCrO0SN77 -I VA TT ER, AND
UNF I TED CONV ICTI ON* OF MYW tABINET AND OV MY PARTY, HAVE BEEN
A MEDAND STRENGTIHENED. AUSTRALIANS MUST-PRESERVE OUR
ECONOMIC INDEPENDENC-IE. WE MUST-ftEJECT. THE SEDUCTIONS OF THEoujcK
DEAL AND RESIST THE 7FMPTATIONS TO PROJF'IT' AT THE EXAPENSE
OF-OUR. CHILDREN'S INHERITANCE, WE HAVE FOUGHT. FOR OUR. 3-
INDEPENDENCE IN SEVERAL WARS, WHAT ARMS COULD NOT CONQUER,
MUST NOT BUY'i, I AEHERE TO WE STERN AUSTRALIA BECAUSE IT IS'
H THATIN RECENT Y EAR Ir THE CHO01CE IHAVE DESCRIBED HAS BEEN
MOST ACUTE# ICAME HERE PARTICULARLY TO CHALLENGE THE MOST
INSIDIOUS OF ALL PROPAGANDA IMPOSED I N THIS DEBATE. OUR OPPONENTS
H4AVE SWALLOWED THE MULTINATIONAL LIE : THAT WITHOUT UNRESTRICTED
FOREIGN INVESTMENT, CUR DEVELOPMENT IS-RESTRICTED. IDON ' T
ACCEPT THIS PROPOSITION AND IDON'T BE L IEVE AUSTRALIA COULD
1AFFORD TO ACCEPT THIS PROPOS ITIO101 w.
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THE QUESTION IS NOT W4HETHER WE PERMIT OVERSEAS CAPITAL
TO DO LESS THE QUESTION IS WHETHER WE CAN ENSURE THAT
AuSTRALIAN CAPITAL DOES MORE, OUR Ot1JECTIVE SHOULD BE
TO MOSILISE THE RESOURCES OF OUR PEOPLEj HUMAN AND CAPITAL,
AND THE POWERS OF OUR GOVERNMENITS, 90TH STATE AND FEDERAL,
WE'MUST SIOP THE ABILITY OF MULTINATIONALS TO DIVIDEt AND
O1ULE OUR STATE GOVERNMENTS AND PRIVATE COMPANIES#
WESTERN AUSTRALIANS SHOULD KEEP * IN MIND THE FACT
THAT M4ANY OF THE CORPORATIONS WITH WHICH YOUR STATE GOVERNMENT
DEALS HAVE A BUDGET TEN. TIMES THE BUDGET OF YOUR STATE
GOVERNMENT, AuSTRALIANS MUST UNITE 1O MOBILISE THEIR
RESOURCES'. N4o AUSTRALIAN COMPANY ALONE CAN DEAL ON THE
LEVEL OF MULTI-NATIONAL CORPORATIONS. NO AUSTRALIAN
* STATE ACTING ALONE CAN DEAL-WITH ' THEM, ONLY THE NATIONAL
GOVERNMENT HAS THE RESOURCES AND THE STATURE TO DO SO,
U WE'MU-ST MOB* ILI* S'E OUR RESOURCES AND OUR SKILLS.
THERE ARE FIELDS WHERE THE COMMONWEALTH ACTING ALONE CAN BE
MOST EFFECTIVE. THERE ARE FIELDS WHERE THE COMMONWEALTH
CAN BE MOST EFFECTIVE IN PARTNERSHIP WITH THE S) TATES.
THERE ARE FIELDS WHERE THE COKMONWEALTH CAN BE MOST EFFECTIVE
IN PARTNERSHIP HITH PRIVATE CAPITAL, F]
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WHAT WE MUST DO AS-A NAT ION 3 S TO DEVE LOP THE POLICIES AND
ESTABLISH THE INSTITUTIONS WHICH VAKE SUCH ACTION AND SUCH 1
PARINERSHIP WORK, I'l
OF THE MANY MEASURES FRUSTRATED AND BLOCKED BY
THE SENATE, TWO OF THE MO ST' SI1GNIF I CANT INVOLVE THIS
~~ ESTION, THE OPPOSITION HAS FRUSTRATED OUR PLANS TO
BROADEN THE SCOPE OF THE AUSTRALIAN INDUSTRY DEVELOPMENT ~ U~
SRP ORATION AND TO ESTABLISH THE PETROLEUM ANDMNLSf. kL
THORITY, OUR OPPONENTS' RESISTANCE TO THESE MEASURES l^
TO PROMOTE AUSTRALIAN OWNERSHIP FORMS PART OF A PATTERN o F
ENCOURAGEMENT OF FOREIGN OWNERSHIP WHICH THEY SET WHEN IN
GOVERNMENT, THEY ASSERT THAT AUSTRALIAN PRIVATE CAPITAL
SHOULD BE LEFT UNIMPEDED.
THE GOVERNMENT IS NOT PREPARED TO LEAVE THIS
SIC ISSUE IN THE HANDS OF THE COMPANIES AND THE MEN WHOr
KNONE OF THE RISKS NECESSARY TO OBTAIN FOR AUSTRALIA
A LARGER SHARE IN OWNERSHIP, CONTROL AND DEVELOPMENT OF
OUR NEW RESOURCES. UNDER OUR PREDECESSORS, SIXTY-EIGHT PER
CENT OF OUR ENERGY RESOURCES FELL INTO THE HANDS OF FOREIGN
COMPANIES, NOTHING CAN CONVINCE ME 7HAT THIS WAS NECESSARY. 71
VutlS tt~ f* S fl
' I~ r CAPACITY OF THESE COMPANIES TO SHOW INITIA7IVE AllD
ENTERPRISE /% ND TO0 T AKE R ISKS CAN ONLY B E STRENGTHENED B~ Y.
MOL1i. N IUSTRALIAN RESOUIRCES AND PO WERS lNHcIs, I s wHY
WE NEE D TO EXPAND T H E ROLE OF THE AhSTRALIAN' INPDUSTRY
lkVCLOPMFmT CORPORAl ION AND ESTABLISH THE-Pu TROL EllM A ND
MINERALs AUlTHORITY. SNI C(-WE WERF ELECTED 10 GOVERNMENTW4E H-AVE.'
ALRrADY SHOWN 711E ADVANTAG-ES O F SUCH AC: TION FOR THE
F IRST TIME I N OUR HISTORY 11W-AUSTRALIAN GOVERNMENT HAS*
INIERVENED P. Y SUPERV I I ON OF iNENAL EXP'ORTS TO S71, GHE
THlE BAfKGAININ( c-POWER OF OUR EXPORTERS, WE WFRE DETERMINED
THAT OUR RESOURCES WOULD NOT t SOLD ON TIfI E CHEAP. N
LONG~ ER CAN F OR E I GN BUYERS PLAY THE GAME OF DIVIDE AND RULE
T1O0 XTkA CT LOWER PRICE S FROQM OUR COM PA Nl tS~ AN D COCSION-S
FROM OUR STATE GOVERNMENTS. lIfE Or'OS IT ION s POLICY: IS
P OMINOUSLY SILENT IN THIS RESPECT. WILL THEY ABOLISH OUR
EXP'ORT CONTROL REGUJLAT IONS?.
THlE ACTIONS OF THE USTRALIAN GOVERNMENT HAVE
RESULTED 114 SIGNIFICANT INCREASE, IN THE PRICE OF OUR' ) RON
ORE AND COAL EXPORTS. THE mET ULTOF, TI-S POLICY PAS
MEANT AN EXTRA $ 67 MILLION P ER A NNU M IN INCOME FROM IRON ORE
AND AN, EXTRA $% MILL10ON PEP, ANNUM IN iXPOfT INCOME FROM COAL. N
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IN THIS tvAY ALL JAUS7RALIAfIS INEF IT F R TPE COrJCE NTRAI I CJHs
OF OUR BARGA) NIN6 POW'ER, WIE MUcST UNITE IN I HF SAME MANNER
TO fPRCSFR 01H-4N rc HI P AND CO1NTROL Or 0 UR INDU*> TRI Es
AND RESOURCES.-
DEEP OFI SMHOSCKR AT HTHTEW SNAETNIOANSARLL ASSCSANADEA. YL SREENVSEAEL ED BYC
W THE FITZGERALD REPORT, MIANY WESTERN AUSTRALIANS PROfA13LY~ 4
BELIEVED THAT 114CI R MINFRAL INDUSTRY WAS PAYING SIG; NIFICANT V
AMPOUNTS IN TAXATION, SOME OF YOU ALLFGED THAT THIS MONEY
WAS BEING DRAINED OFF T0 711E OTHER Si,-fss L n ME MAKE
T1IS CLEAR IF THFERE WAS ANY DRAIN OF 7HE WEALTH PRODUCED
IN WFSTERN AuSIRALIA 1T DID NOT GO TO THlE OTHER STATES;
IT WENT OVERSEAS* H FITZGFRALD REPORT REVEALS THAT OVER
THE LAST SIX YEARS THE IMINING COMPANIES MADE $ 2,072 MILLON
IN PROFIT, THCY RECEIVED FROM THE AuSTRALIAN TAXPAYER i
$ 341 MILL110N IN SUB~ SIDIES AND PADOL,$~ bMILLONITA
D AND ROYALTIES % MILLION LESS, AND SIXTY PER CENT OF
THIESE PkROF TS ACCRUE TO OVErSE. Zf* A0-INVESTORS, INDEED, THE
ANNUAL AMOUNT Orr PROFITS'PAYA13LE OVERSCAS fROSEL SIXFOLD IN
THE F IVE YEARS tEDING JUNE. 197 3.
TtiE AUSTRAL I AN GOVERNMhENT IS OU! T1[) T HF
CON~ T INUAT I O' OF S I 611 I F I CANT CAP ITAL INV[ STMENT [ fI M[ N[ ING.
lii IN'E STiFNT SHOULD 1\ OT INVOLVE Lb S S E. 1T0 THE AI Of IAL
REVFNU1, NOR SHOULD. 1T PR IMAR ILY PROiMOTE FORE I Gf
PROr ITA) I. t17Y, AM AWARE orF THE BENEF I TS'IHA THE MI14 1 NG
INDUSTRY HAS 1DOL'GHT TO THEL Fsr. 11 WHOLE THRUISI of-MY
ARGUMENT IS THAT 14SIERN AU,' TRALIANS-I-IKL' ALL AUSl) TRAL IANSJ
SHUD HAVE BENEFITED MORE FROM THIS' DEVELOPMENTO WlE HAVE
-NOT TAKEN FLL1. ADVANTAGE OF OUR RESOURCES IN TERMS OF
PROM01 ING THlE WELFARE OF THE A uSTRALIAN PEOPI F 141 INTEND
TO 110 S0 I N THE FUTURE,.*.
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14F HAVE ALfREADY ANNOUNCED OUR 114TENTION TO EXTEND
AND STRENGTHEN THE FOREIGN TAKEOV/ ERS LEGISLATION,
THIS IS ONE Or THE MEASURES WHICH WA S FRUSTRATED BY THE
OBSTRUCTFION OF -THE %. ENATE, W4E PROPO. SE AND I ANNOUNCE -I
HERE FOR THE FIRST TIME"-THREE BASIC EXTENSIONS OF THIS
LEGISLATION1 THE MOST SERrOUS OMT-oioN IN THE* PRESENT ACT
I S THAT I T APPLIES ON[ LY TO THE PURCHASE Or SHAPES.
IT DOES NOT PREVENT AN OVERSEAS3 COMPANY BUYING ALL OR PART
OF THE ASSETS OF AN AuSTRALIAN COMPANY AS DISTINCTK.
rROM THE SfAREHOLD INGSS T HIS I S A MAJOR LOOPHOLE.
THE EFFECT OF AUYING SHARES OR BUYING ASSFTS IS THE SAME,
Ta Ecr)! THE LFGISLATION IS THAT
IT DOES NOT INCLUDE COMPULSORY NOTIFICATION RE. QUIREMENTS
FOR [ OREIGN COMPANIES PROPOSING TO MAKE SUCH A TAKEOVER
OF ASSETS, WE WILL iNCLUDEF SUCH PROVISIONS#
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WE PROPOSE A THIRD AMENDMENT,
THE LEGISLATION DOES NOT EXTEND TO COMPANIES At-READY UNDER
FOREIGN CONTROL BUT IN WHICH THERE IS A SIGHIFICANT, MINORITY
AbSTRALIAN INTEREST, THFRE HAVE' BEEN A NlJMP[ VR OF-OCCASiONG
W4HEN THE AoST RAL IAN EQUITY fIN A VENTURE I IAS BPE[ EN DIMIIN1 SHED
BY A SHARE ISSUE OR A'SHARE SVAP, 1WE P ROP OSE THAT;
t -ON CERTAIN CRITERIA, ANY AITIMPT TO DIMIN1-1i A SIGMIF ICANT
AI sRAL IA14 INTEREST; EVENIF IT IS A lnOl-CONTROL LINMC
INTEREST, SHOULD DL MADE EXAMINABLE IN1 ACCORDANC. E WITH
THE PROCEDURES DEVELOPED BY THlE FOREIGN TAKFEcV[ R COtMMIrTEE
CONTROL OF FO0R EI G f TAKEOVERS Is0O NE ASPFCT OFI
MOICY DESIGNED TO MAX I m i s AusTRALIAN OWNERSHIP AND CONTROL.
TUE GOVERNMENT IN ITS At'M IN I STRAT IVE ARRANGEMENTS, 14AS CESTABL ISt
A BROADER SYSTEM OF SURVEILLANCE OF FORFEIGN INVESTMENT PROPOSAL_' i_...
NOT INVOLVING DIRECT ACQUISITION OF AUSTRALIAN BUSINESSES.
' ANNOUNCED IN MY POLICY SPEECH TH-AT VIE WHOULD FORMALISE THESC
ARRANGEMENTS, WE WILL ESTABLISH A BROAD sCREENING, PROCESS1
WHICH WILL-COVER BO0TH THE FOREIGN TAKECOVERS PROCEDURES,
AS AMENDEDi AND NEW DIRECT FOREIGN I NVE STXENT. ANY. NEW
FOREIGN COMPANY PROPOSING TO SeET UP IN AoSTRALIA'FOR THE
FIRST TIME, OR ANY' FORE'IGN COMPANY PROPOSING TO EXTEND ITS
INVESTMENT INTO NElq AREAS, WILL BE REOUIRED TO APPL* Y TO 111E
Y AD HE ETILS* OF THE PROPOSED -INVESTMENT WILL BE-
,4EAURY ND T DET 04
7 1 sIENN RCS JLElSUETA N
FRANC HE SR E ENIC ND DOEVSL L H SRTE THATD ANRE
' ROPOSIN FEGTL IHNVESTGE WICHSIS POLICIES CNORAX
AVIDACE OVERAR ALP ATIODAL tTIE GUDZ NE THEIE SE
WHIC HWILL BECEOE MOR CULA TENTOR EXPRIEC GRPOST
RINCOMPANIES ALREADY OPERFAT ! NG ' AN AUSTRALIA WILL
E EXPECTED TO CONFORM, W~ ITH THESE GUIDELINES PROORESSIVELY.
IN TH1S WAY WE WILL ENSURE TVAT THE FOREIGN INVESTMtNT
TH~ AT HAS ALREADY BEEN ALLOWED IL COFR T H
AUSTRALIAN NATIONAL INTEREST AS WELL AS ANY NEW FOREIGN
INVESTMENT THAT 1S ALLUKID.-
No AusTRALIAN, NO MATTER HOW STRONGLY( HE BEL 1EVES
IN 11AE RAPID DEVCLOPMENT OF OUR l) UIRAL RESOUC
StIOULD PAY FOR THE PRI'/ lLE. G O) F liii 11,16 LXPLOITED.
THE MESSAGE OF THlE F112GEWILD REPORT IS CLEAR,
WE HAVE SOLD OURI'; ELVES SHORT IN OUR RECENT MIN) ERAL DEVELOPMENTr
Tal PEOPLE WHO HAVE SUFFERED MOST FROMi THE FAILUJRE OF THE
PREVIOU1S GOVERNMENT TO CkT TI FL I2FITS For AUJSTRALIANS9
ARE THE PEOPLE OF THIS STAII, WHERE MINEVAL t'E-VEl.. OPMENTSl
HAVE BEEN THE MOST DRAMATIC. ThE FA . ILURC I( O MAXIMI . SE
OUR REVENUE IS A FAULT OiF THE LAST FEDERAL GOVERNMENT AS
WELL. AS THE ft. CSENT STATE IGD V ERN K[ INT
THE REVE14UE wHict TrHE AUSTRALIAN GOVERNMENT WILL
RECEIVE) t. VEN FPOh~ THE DECISIONS AI. PSEAPY ' TA KE No WILL ENABLE
US TO COMWVf CONSIDERABLE ADOUNTS TO0 EXPELORATION FOR
FURT11ER RESOURCES AND THE DFVELOPMElT OF THOSE RESOURCESBy
itHE AUSTRALIAN fOVERNMENT DIRECTLY AND 1IN PARTNERSHIP
WITli PRIVAt AUSTRALIAN CAPITAL. MUCHi OF THIS EXPENDITURE
ON EXPLORAT ION AND D) EVELOPMENT VMLL OF NECESSITY BE
rJIRCCTED TO' THE GREAT MINERAL RESOURCES IN THE wEST. OnfLY
IF THlL ' AusTRALIAN GOt-VERNMIENT PLAYS A DIRECT ROLE IN Tlic
PROVISION AND MORILIGAT ION OF CAPITAL WILL OUR RESOURCES
ttE DEVELOPED' IN A MANNER CONS I ST) ENT WII1H MAXl1MW~ AIST R AL-I At
CONT ROL AND 0OWNERSHIP. K] ' 1' S .1
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THE R~ E VEFL A I) N S OF 7HC FIT ? GFRALD. kEPORT APE
pis iOWEVEtR ' T I S C! FAR FP.' M THEI P RECENT
STITE IENITS THAT THE-GUL TY MEN COF THE: PR~ EVIOUS GOV/ ERNMENT
TtHE INEi WHO At. LO'IED T F S S 1 -TUIAT 1O TO EMiERGE AAP . E
UN RElf-E N TANT THXE Y HAVE NO PLAN -NO I NT E. N 7' ON -TO
* REDUICE FORET1GN CONTROL OF OUR RESOURCES, OiN THE ATF
OF TAXAT 1O0N CON~ CE S ONNP N D LS0~ Slt THEY CONTINUE TO i~
~ CT AND TALK AS THE APOLOGISTS-OF FOREF IGN 111ING INTERESTS,
HAUSTRALIAN PEOPLE HAVE THE RIGHT TO KNOW HOW T HE
EXTRAM INARY CRUSANC, r -) LprWt HICH MADE
AuST RAL IANS3 PAY FOR THE E$ RIVIL EGE OF BEING; E\. DL01T E D3
W4E WILL E N' 01.0A GE AND 1) EV71LOP onR M f,!" AL7
WINJ( JSTRJ-E* S BULT WE ARE EQUALL YD, k" 1NF TO MAXIMISE
THE CONTR [ ULT I CN THE SE rNDUSTR IE orMAAKE TO OUR NATIONAL
' F AT H ' A HAVE TODAY SIGNE1L1 A REFFRENCF TO THE D S RE
# Ass! ISTANCrE CO MM I S t' ASKING ! T TO INQ:) UIPE ANI' REPORT ON
THE EFF-ECT 0 r T A XATNIC 0~ ICE Sf ON SSA ND R0 LT7 IE ON THE,
DE V EL C) PMLN T A-N D EF F I C .1IVNY O THE PETROLEUM IAit N IING
I L ST R IE A i T 0 A D'yIIS E F~ H P% A ND N1W14H AT WAY0. WE
SHOULD OFFER ASSISTANCE T0 r'R IMPOSE R0Y A L T I , S ON THEE
411t J"
S. t-THE FITZGERAL) REPORT REVEALtED TIlE SEERITY OF
THF LOSSES AND LOST OPPoRtU! ITIE I IHAT UUCO-ORDINATFL)
AND t4BUSINES5LIKE POLICY-MKAIN IN MI! lftljUG OPERATIONS
HAS ALREADY INFLICTED ON 09, THE REPORT OF THE COMMISSIOI 1
WILI ENSUIRE 1110 THE LOSSES WlILL. NOT CONTI NUE AND MY -i
GOVCRNMENT WILL CNSORE THAT THE GREAT LBENEFITS ACCRUIG
fiRM THF IEVELOPM'ENT Or OUR NATURAL RE8OirPCES ouR
NATURAL HERITAGE WILL PE SHAPIEr FAIRLY BY ALL
S -AUSTrALiANS I1N THI-1E INTERESTS OF ALL AUSTRALIANS.-