PRi'ME MIN ISTER' S. SPE. ECH-Xf ' 11E FARNERS AkND 11OOLGROWERS ASSOCIATION CONFERENCE.
SYDNEY, 9 JULY-] 976
I fun very pleased tohv been asked here-today to-open your Conference. This is a
Very difficult tilue for a nuober of. kuka1: industfies. . Thle Govarniant riecogaisos-our
obligation to do what we can to case the very severe probolems wh ich do exist for. 8
biaiy TUral producers.
Those prob-lems-are having-a very severe inpact-on many communities.. The economic
hardship faced by farming famirlies is highlighted in the followingfigures: 45% of
gmaziers had net incomes of $ 4,000 or below in ) 974/' 75; 30% of diaryfarmers had net.
incomes of $ 00orbo; 2 fGaegrowers had net -incomes of $ 4,000 or below atn
4 1% of apple. and. pear & r~ owers. had -net'incowes of $ 4,000 or below.
On top-of this we-have had drought and a disastrous situation in the Dairy Industry
whwiiclhl make ~ the position indefinitely worseintiinury
coming to office. Rural industry in Australia was. dangorously ignored -at a very.
critical time.: Policies-wer'e adopted without any concern for the effects they might
have on the rural community.
National1 prosperity cannot be built. ona a declining. rural sector.. All sections of.
Australian industry are interdependent,. and foXicy has to recognise that fact.. The.
economic problens.. which affect Australians in-the cities affect farmers also.
The greatest of . these problems has been inflation. -Inflation has destroyed profit--
ability in ma-ny businesses-through rising costs and the tax system.. In primary
industry, the priority is to restore proiitability. Only when business is, or has a.
prospect of being profitable, is new invostment-likely to take pl-ace and job
opportunities expanded.
This is why it is the Governoenit's absolute deteimination'to bring inflation and
rising cssvdrcontrol. Only in this way can we start Australia moving forward
again.
TeGoVernments strSIIategy -Waus'developed -in opposition anid * has' been conStaY~ tI* 7y
retrtiec e..' Tt an-oeenso ti trieyhatve'' been to. bring
go~ reetspending-under. control-;: to-free-. resources, to the-private sector. and-to
inaIviduals-;,. to, pursuo' a-respon'sible . monetaryo policy . with; t1early,. anznoWncadq goalS.
ndtogeertea~ cllmate of natioenat, epniifiiIic w a. aar etriL1
willI be! possibl a; and. in whi-c. botli; business-and. unilonswill--act-. With. a. Printipul K A~.
TJipkdately. after-codiing-to ofi-w ok ste -t bein Iffiplemrentinag this. strategy,
byitrdcigadiisrtieani sening eoome by . haltitg -pub il c-service-growth
ndby nupber,;' fstp to-. elp" -investmentapdi ease: tlel cash crisisfo ry
_ to: now -plant purcased: or -lea: ed -between 1Ja~ nuari7 r 30 June* 17an fis
tse or inste by. 30 Je ' 979.
s-d 3 -O
Thael~~ o~ a c il e viable in respect*-of: purchases of v6 6bt new fa rmmaher..:
such a's: tractors; ayses etc; and for. rfelw-Structural iiwproveatents: such as. for,
On : 20' May Ithe Treasurer aoncdafurther'sarie s. of mesrsill this strategy.
Thnsec ldedsavings'to the , udget'' amounting, to almost,$ 2,6006 Million;-fulrpron)
inomitdax aio; nwscheme -of-family: ailowancos which. will be 6f p& artIcilar-.
beneft-, to frigfamiis.-
Imentioned* at' the -outset,-" th' large -proportion* S-of faimer idiying . fruitgrowing aL,
other r. uratl Andustries whc. Ii,-i ~ os'blw. tbe taxable level. '. hs will derive.
-great~ b nofitfrom the family; allowance sheo.
O: Oexx diturc re stra insjnear that3 f~~ h. isL-ti n Iivx. y. hr a e
' o-. aundy-b~* ed onide-o-it he.,-comionity. that: jovexnmoat., spending . hai_-a 4. s-sl...
broughet wI Vr Ietrt: P" in* r ,11.
piri ncipal. forces-fuelling excss inflSation. and: ithemloymnnv Whei We ca me t
te ov nk! out o7f:' conPtoV.
Rempsi~ grejosiil~,~' nthe_-Public: Sector-means that_.' uro , can bo freed-to t
theo privae scto adtindividuals. f. 7.
3. N
" We hav e Iem ise! d ' consultation i. th. rpeepesnn~ aiio~ O off al1 MjPhvajrss ections of the.
1 Th6~ nrmoy-h~-ei disi sS~ i ns it. dnustry. repmeentatives->
including th'piiary -industry-group
Sevekal: week s--agr we; hel d an iinpbrt-atii-scrts -consulttioi-thTrde----
Unin bbveert; oto th odscssion. caineacl. r recognition of -the cnrbioff
of thewae d. slrbilt Infti.
IW9e an s -t: IfIa o-Yb
* demands-. f ot are to bo con tained-and growth in the economy res5uned.-l! LhereI . rT
signsthate natonalcooperative'. ef fort ' can'be ahee.
uigou buidge t eonside n; couir rent! economic-conditions -ant -prospects. a ir6 ' being.
closely r tnie. A numb6r-of leading -economic : inlicators. point to recovery i
~> real iecocno mic-* g r As -always.. there,.. are. conf licting signs. am~ ongst the-inditators.:: 7.
Wbee liev, howvr that t-p'osi tive -indi cations -are now more. wispad
Torehas_ -been a-signif fcant! s lowing in teu elyn raeofpi ndwage
incrases. in-the-past, yer iTeconsumer, ~ in. idexicrad by2Si the'. n -~ o
tr; and -iYI-thptahtyh-eie -oe 3 compAred wt irt'
-previ ous, ye
There haLS also be0en inre'eta n*-n the0 ~ wt lhu " tfherei g rate:--
stirl e~ aishigh. Average weekly~ eai-nings,: excluding-overtime, nr~ eb
11.6%. ji th r to the March quarter.... 1976' compared. with' 33.3A in the: year* t o . the
'. Mafch-quarter 17.
* Retail;' sales so -far, th is: year, h ave showe6d signs of rea 1l growth.,:-Taken with t-he . i-
:,, strong rise, in motor; vehiclo'rejistrktiolfs~ this, incates.-that: torns-uor conf Wabco
fI-S-imnProving: Dwol-ling approval s, aintaiytbd. healthy lesinMost! states,.
'~ Our exprsn* ue$ 73ilowr recr -' rd 9c7 5176. as a. whole,* exports.
0O; --y71i~ j r w971 inrctnhs-Tst-c~ e ofor-m-o
tradi ng partners-1ive' contiaued: -to. recover, -export.. Volumes h~ ve bogun -togow or
rapidly,. at ith& same. time, average, export. prices are. firming.---. N
irPlant and-? quipnlon Wll
-record a return to real, growthIn. th ue 96.-
resrait, tee sign are z-: enourofgtng. Anoweeasoe-scin
of -the. econorfyk-remaini sluggih-and. only:' 00continjual.: reduction
in. he. inf latioirate7 can pave--the -way, f or-, a return to: steady'
and. lasting'qgrowth... UnI~ ploYment-9: stilL f ae---to6 high-b. t further lArge
inrae-in -government: spending . will ' nott takeui p:.-the" s lack. -in.
. a way that. Would be sustained.-
. L An'ow-, eeza_* ke-the lpOSY). t-so-si~ t. there-. s no im1. Lr
bit o-itIeLrepn 1 bility. hsSdc~ 4 l te
St -pt l l h-St aire: hot beinq -as ced-
They hve as prfondan_.... iterest. as the.:* wowelhGveneW:
iLrducil9... the,*, national-def icit-rd~ etunn
their ' ecoomico af fairs.__-
-It'is utterly ~ unreal ' to think, tha E goverranents cngo.
o p nn more in real-. terms, -: year, after: year. Ththe pashi
theStates -have -axj; ezted-the CoirmonwealIth. -to foot the _ bi1 tl.
mleet-State Pr'omises. They, _ expected:-these increases in. real
terms -athghi -T. divine iht-_ eywanted: to on-.~
the cash, but, not. the-. cost'...
The States. ilhaet e Lethatteywlhaeo>-;-
share " economic , responsibili'ty : if. this; nation is-to! go andproaper..
-f -they, doni't.-thew voters wi411l give them-the. resq
_-_ bktter . than Jcan.--)~. thLstrng. b
Ithink. that Au now unders-tand-that if--the, co -nwAlr
or. the. St atI --want to spend -more of: taxpayers: money' : thy egon
to have to justi fy ' their; actions.-*-
4hi.. aw1en~ of f ar--o-1~-pp~-ae more-aware,
* than anyone. of the cornsequences * of -Governmnents who--want. more
and more-of Peo PIe's incomes-
An~ nvde-arty.. 1remier-cla' tt'hey have bee frugal,
Ccni, annhc'-da fyre6WiaI beef ul'-lot-us have--a.
quc'okAt the: f igus -Last -financial-year ( 957)
State' Otljays, went -up The f innilya bef orit d
rL~ ixq_ 3 iow-iharclA-th9-State, Pree
utiythe additioni-a riodinig to' -their. own* el ectorx how--
hard did they.. try to lmak6':-sure thtevery cent-' waso pUt-to best
poDS Sible -use.
Let usn6o. w'". l oo at: the: growith.-fthe P blic-Service in the--
'$ tate'. -Betiwee6n-December and -December. .75 -just--three years
th0 tae6mpoe an, -aditional.., 83,-000' peplai'. wonder
if the. States'* us ed;. the samne-criteria-thAt, a, bisineIsema-. Dx
farmerwouqld-have. in decid ing how. mnetaepl t~ ie..
~ be-St'-cit-Wrii--ine-V-~-l~-e'c-yR-cT'
Ahrtttti--years,
f or. the,. former-admii-stration o1. f.: New, South Wae.-' nVictoria
that-fiuews1.%. Itwitesm nQeensland.-l
Tesmrijt al a16w 3% i h~ i-6 Sowth A 9
The" Comonwealth under' a Labor * Governyment! increa-sed -it's Plubli-
NOW: fo'r'-the," first . tiie in ' twent four. yer, C ommonwealth-
Govermnient le putting.' a-halt: to-this cidf qr-gowth4 justw
s~ vn months, wehv-rdcd-h ie fthe. 001rucnwealith. Publi
haver -been, reached under-: ceilings; set--by : thel-pr-evious, Goverru~ ient.-
0 , olo'e wa, afked), Tno. one, waS' askeAd-to: leave'.' It ~' a'. 7achieved
by:' natuial wastagae,* rtrmn and',. tne'. anid asubsequent.
more efficient... use. Of' manpower and womanpower.., We have not.
t~ op~ c~ Th) enrneb J~ je--y te Conowcalth w; If-I
continue! to reduce-until,-jne-next . year.-T-hage aJlreadyt " nouncea
new ' ceilinjs.
.211 s't~ L . ax show; respuns i bitixY~ in oonmi A-6--1ejN
stteso; If we, call sathegight aigainstin~ t~ n. s
~ n h ~~ rido.. ast~ zt ~ hn.. wi1. j . th estite sIo. m. the. Start. Zwhich
. theyi~ sll -know i. they s. caw make' their : own. contribution;
a ' ti.. ng, inlt ynovinrsi ntesad ahrga _ 01syar
After" taking: into-, accouint hesharp.. o ta~ eeu on otesae ndlol
utorities together with'Itheir. allocation idr oncoliporme
the-stawtes. and. local' Voernmentdl hitV16' moreth ari $ 9 00 i 1llion noe a lat
year-, at thoeir, disp~ os al. 7-
This--s-a n4hc esof1% aov rat ofifato, a-hul nab~ e h
w tkIbe th onthrthtthe'statos + are, reD& to . make . thoir: own+ eiin;
Iil + how, thoy , spen this. addi tional' + 1 y. They: have. b acn. given, grea terf, ibit
hnevek befor& s-Ti ' ihu* sso'-to-o -balanced& f cb6e g1nst u'-y
Some+ g h ~ rne~ ~ d~ o U1et2k exc. 2c. fo the
wDolO I e p-7tc--275-et--? r-k ' Cleanl for. Uw1oi; i o T i . s'a
inrae f 5cnsover., the-rate thM ar preie for: the -last th-ree: years.+;-i-. L
h, i ght'a dd that this :-action . also is+ in'm arked -contrast froirthaV+-taken -bY theI
fimer-' administratkor-whnj-n -t gthpiniare siuaio t re.. c t . su
price ii 2+ 00* -cents fom, 250cc ents pe kilo,:-6lean o. 2 irnwo. Ti,: o
p0P o-satterod coif i-denein', wol-tad,
' me gove" rnrn hS lso, deci edto continue: tWhe' loor p1iei 977/ 78 -at -not+ bolow z
~ the l-evel 4pprovetro thi yer. Tiwlpoie ontrmsaltyfoth
-' indtjs r,
The'Government : has, conf ide i h fxuture; demanid frwo htdmn a an
str ngth Dnin g in recentiweeks;
Wo are confident tht cbfisidorable ' quantities + of the Aut aar-corporation'stcswl
bsold over, the+ n es U2 tto ' h+ sns orpin a] : tyading opOrarins0tvns
tvhr net elevsthoit,-thok corporationneeOsito retai. n, considorable oc .0
K ool TiWill-enable wool~ to be suppli ed to maj or. consumers.; in. particular
7
ircumstanoes,-that . might, arise.,:-and to. make: -sure:. that.. dai STuptinS. to Supply.-
cannot!-. interrupt. the pi~ ocess; of production
Tiisapositive. action-that; thet Covernmenth as -taken_ to. reinforce oiie of.
* Austra ia s. mkst. significant; industries...., This-docision, of.. course involves nto,-
chargeon. th tapaeW 74
-rwr. knotew-r e-ulngtirown: fund: to. support-these rniarktn
p'ITgfie Ppecent. of'. r~ sp eeis. Of th C sa I1e 60w~ 1. andill
additioiTto -that, it: Is exetdta u hthavbon avan4ed, by. th
GoVernjfent Iov er the", pa s t, yars, d conuferci 1.. intere s tra tes, will. be. r epa i d amot
entirely; n: th et tw e lve emonths
: J the nex IZ
4
' Tern is ate: gdeifr en , iiD rie-pac-y hi oene c1rshfe a6". 77
theo right paidto thef ut.' ain'poue wane~ bt~ hntey..:. y-d'the-a -ca. cot
tor. handling, . and n -for'i.: _ sil-CfaInnad f-': afq or & xmle, jwree
an-I te' . S frmonrpdigr. o-Vfa,~ e aiies-cetwtey et mow. whlsale.: mat ri--Jrpn u
no Canad hae rmiedcoe. i. in. ih. hs. X h'U. A
ofehan Ipe4pro und, procfi-a sml: eae.. axm-e,, n'rcn.
eeI 4, II, v f-b w
ve. r.: o n -h s f en eI v h
LI) pou e Original. -oill4I* 4. Of.,
The ~ o v er i. m Lash I been: a c tive i I I _ eking to_._ Secura im~ roe accessy
to bIe i~ rs o64ar 6e al. -The be ef fre w -an important. . asp6ct-.
ofm0 icsin aa. W ho twonat Ong; are: as clS ey. 3. n
f-U a -r M-. J
: ous 3* blt was no he,-wy' -ua Ther., e h. As-t e tsiiy
taad in ' bYoft h airoation tecee
to turt eapWaenk rxctn-a. t aCA ri f Uth iestnF iprtace weloc
jjjWthe C77. t 65tJpnhsdca4 orsmei~ ot fbe'ai h i
t!.. rri ec1n to reae;!--so toy. st r thly . pr quta anouceen
Thswel l'ijet more' sh-* ott ri~ ab~ t entth is trae. ihrs 47-
ofu -rs ae'i both d.. Q.-t niro fo 197 287,00 tones. whch',
i h l o at o eae
coueA. iirz~ aia poitovrnt spplyan. hottiaig. on ' te USA ia3
not soo unh. aea oabletoexec epasin. ofth.. Xotz~ prst
theko inr~ tuheel myoeta rs d:
T i o-. ra e
. m
* C 0 -to: sup alpyo. stio any -s orVta-l.*-.( on.
Low* iziterest-r* ata carry-! ow f inance is asvaitablotrehrc~ tut
authorities-6* x. t-"' 4id-* Xt'-h aked . the: states:-1 o indic~ ate
what. f urther. Ifunds, they. Conaider -Should. be. provided, Woe hae ecdeo
to. provide. fundS, to " coinplen9ate9Jp' roducer&. fo t'he: aaughkter' of'.
brcoloinsd tuerul~ s. rectrc4ttle. -This WU. 1 , bft a4j Impor tail C.
ongoin รต pr-9ramme. In: 1976/ 7-7 wewill-. proVida Million for
Compan a Ypjpsde $ 1million in. the cuxrent-year
f for': the conduct . of -the ca aig ' to eiradicate: the-so: two,-I diseases
* of which. ony.$. 8milonwilberope yle recen tly-: in troducedz
$ 1 per, -had-sl auqht6r -levy-., 7
my Co0le; iag Ue,. th el Mniste for P rIma ry. -1ri d ut ry en tly , an no u n Cad
be. reviewed. ooultetlarnh i i h beef-eporting-6o tres ha
beant-v. l-~ pr n-theuF" ro pxji~( iinui fo a eturn
to a Aiirb eral: imnport-sya tent -for. beef.
W e ar etrid.. to . upqradea: the'a t ronqth o x our, xaprosentto~ t
the R u rop aan. 1)' 1ozii CCommUuort y tolong we. have. ' take i a-) arge-ly
psi8appro acqh. to~ Atis-qroupinq, : whichr . supp X-ta free trade-ii the
-man+~ tu+ iij0 : prodUCts_ while rai in 9 -ioense barriers * against farm+
products%.',: in.~ isn. e t wt thrlkemne e vi' 1, be
Seekfng to break t roug-h -these: barrirai
L S T O
_ The-Liberal a National. Country % Partiesa' re. greatly _ coocernied., ou
one of the, major. problem-fcnsp r-. poues. teetee
wide luctu~ tiona, iii -their: icms rn yeartoya. e-r cmiotirutroducric
an -incomit! eqiiali satIonidpoi. o f aitn kncOme rosexve
f u nd which: wil1 :' overcome the. Ppblem, of . incomea utitoa ad nor
q robterstaboklity: in frosInvestme t' expeiidi turs : Under the,. ssem
taxpayers wudb loe osra bi noeoe -nme. o-er
by0 ging deposit -iha7 ec3-en. Ths depo It, would thnbe
ddut~ ehdaf" r my a2~ ta~ ile iIeom-. Later-; wthen whole ;-or -part--o ip".
* theJ -4epvosit i0 -WAthdrawn,. tbamoun tr-is-add ed to: tba t year. a taxable,
i nfome. -+ Decisions-on theo I. A. C. recommendations,, in thig matter: will
MiAd i thiks yeA XS B6udyet,
' X
CA~ RY OWN S S ' ANC R
1ha. Cjoe e rnm6 n IIa S actedO: to -re Iie ve.-the. d A-. t u .1Mi
roeaio 6n-. individuafarer.. .01 . May. .10. as a n.
' ugntitei resu~ the-conditions:. of cli cjihiliy I. or Unmp-1oY ' Aft~
b P le fi ts were . Val: . dit inld'ar s ui cr in 9. f 11) 1) C k 1 h r'd hi
who. I have. rogist6red f or UnYFI~ e pxiou~ t_ s
ctmdiIions. we rpe I-nelq
To ~ qualilfy,-p.) imary p rdu c. exs-havew to be. actively:. se-ekingem1y3e9t
and-th eI T r-f arm: basines ret~ rnirig.: a. net': income! -lower than. thle: uhipd.-
i e n b er. f i t. 2 082-farzmer$ (.-20o-inN! e * Sut.-dS. r rcivi ng
unemployme nt. binef its-' imit -of Abhese' farmcrs. -did.-not -qual1ify-. prior.-~ x
m~ e. ra tion-
, Th e ro1axation of !-unemployment, be~ nef tsl r des igned Meet immfdi atejir
nptd will br eviewed: tog ethexr with-. thd atoP. n... oom
11 ruralrcotuciY. Cabinet. Will : 600y Cos Cer roconmeId a L on~ s:
on Juture. asslstance . fobr-rulr'al ' ar3jxtment,... iflcltidin. touscho'id * I
-from J'a -197.7..
TheSeL Cabinet decisiQns,-wiil f orm the.. basi. _ f 6r di scu& , ions. with th L'
State:. * Io~ owing discu9SI~ ns-with tbe-. State*, adc o
takezi-. on tbe-f orm of: -any -househeoId support,.. to be. provideO.;: K
0.. 0