PRIME MINISTER PRESS STATEMENT NO. 348
22 October 1974
SPECIAL ASSISTANCE FOR COUNTRY CITIES AND TOWS
The Prime Minister, Mr. Whitlam, today announced details
of a scheme to give special assistance to country cities and towns
affected by certain Government decisions.
Mr. Whitlam said the Government had se-aside fundis
for this purpose from the $ 10 million allocated for structural
assistance. He said: " The Government has taken many decisions in
the national interest acz part of its fight against inflation and
its campaign for greater Productivity.
" These policies must stand. The fight against inflation
must go on. " Nevertheless, there are country cities and towns which
find it difficult to cope immediately with the effects of some
of these policies. " Our scheme is designed to help them over their
difficulties and prevent unnecessary unemployment.
" There will be continued close co-operation between
the Australian and State Governments so that this policy is
co-ordinated with decentralisation policy generally."
Mr. Whitlam said that those initially eligible for
assistance would be companies affected by:
1. the 25% tariff cut;
2. the consumer electronic components and equipment tariff decision;
3. the domestic appliances tariff decision;
4. the lifting of tariff quotas on woven shirts and knitted
outergarments; the decision of 18 December 1973 to revise the subsidy and
quota arrangements for the shipbuilding industry.
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The C'overnment would consider extendinq its assistance,
wherever necessary, to companies affected by other decisions
involving structural change.
The scheme will apply in all non-metropolitan centres
except those immediately adjacent to capital cities.
The Government will give priority to assistance to
relevant companies in Launceston and Wangaratta.
Mr. Whitlam said the scheme was being introduced to
supplement existing adjustment assistance measures.
The measures now approved include:
Subsidies to companies. Where necessary pre-payment of
subsidy may be arranged to grant immediate liquidity. A
profit limitation will be applied to such payments.
Capital grants to companies or local bodies for the establishment
of viable alternative production and employment.
Loan guarantees ( after necessary legislation has been passed)
Finance to companies or local bodies for feasibility studies
to improve methods of production or to examine alternative
forms of production.
Subsidies to help people travel from adversely affected towns
to jobs in nearby towns.
The scheme will be administered by the Department of
Manufacturing Industry in consultation with other interested
Departments pending the establishment of the Structural Adjustment
Board. The Interim Committee on Structural Adjustment will review
the program and provide advice on both policy and practical aspect3.
All enquiries should be directed to the Department of Manufacturing
Industry. A reference on the principles and operations of the
scheme will be sent to the IAC after the scheme has been in operatlon
for two years.
CANBERRA. A. C. T.