RESS STATEMENT NO. 355
29 October 1974
INDUSTRIES ASSISTANCE COMMISSION
REFERENCE ON RU1AAL INCOMES
The Pri~ Ie Minister announced today that he had sent a
reference to the Industries Assistance Commission asking it to
inquire into and report on the provision of assistance by
the Australian Government to reduce fluctuations in the
incomes of rural producers.
This matter was raised with the Minister for Agriculture,
Senator Wriedt, by the National Rural Advisory Council on
October 1974. The Council requested that the Government
give urgent consideration to the stabilisation of after-tax
farm incomes. The Green Paper on Rural Policy had pointed
out that instability resulted in a misallocation and underutilisation
of resources in agriculture, it acted as a
disincentive to investment, and it discouraged lending to
rural producers by financial institutions.
A principal recommendation of the first annual report
of the IAC tabled today was that the question of assistance
to reduce fluctuations in the incomes of rural producers
should be referred to the Commission for inquiry and report.
The Prime Minister said that it was necessary for the
Commission to consider the role which income stabilising
measures might play in achieving the broad objective of
improved efficiency in resource use. It would also be necessary
to have regard to the need to co-ordinate the various specific
assistance measures designed to meet the requirements of
individual rural industries with general assistance measures
having application to rural industries as a whole.
In considering measures for stabilising farmers'
incomes regard will need to be had to instability arising
from fluctuations in production prices and returns as well
as specific measures to stabilise after-tax incomes. This
will necessitate consideration of all factors affecting farm
income including input prices.
In recognising the importance to rural industries of
stable incomes as a basis for confident and efficient planning
the Prime Minister also pointed out that the effects of
instability in primary production extended well beyond the
farm. gate. The Green Paper on Rural Policy recognised the recent
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large swings which had occurred in the level of activity
of such service industries as grain storage, abattoirs,
fertilizer production and farm machinery.
Any measures which make a significant contribution
to reducing the fluctuations in farm incomes will not
only directly assist the farming community but will be of
benefit to the Australian community as a whole.
CANBERRA. A. C. T.