PRIME MINISTER
FOR PRESS 19 FEBRUARY 1977
REGIONAL LIBERAL PARTY CONVENTION ALBURY-WODONGA
We have been having an interesting week in Canberra. The Labor
Opposition, as usual, revived during the Christmas recess and
expired on the first day of sitting. But it must be said that
they worked hard over Christmas just before Parliament
resumed, they put forward a new plan.
If Labor has done nothing else, they have earned their
self proclaimed label as the party of planners. On the economic
side, we have had the Hawke plan, the Whitlam plan, the
Wran plan and just a few days before the opening of Parliament,
the Hurford Plan was unveiled.
A plan in which the Shadow Treasurer promised to cure the ills
his party had brought upon Australia by repeating all of the
mistakes of the Labor years.
At least he had the good grace to tell everyone that his plan
threatened to prolong inflation.
Mr Whitlam told us in a television interview 11 days ago that
the Labor Government panicked in 1974.
" Of course we panicked," he said. " The Cabinet panicked, the Caucus
did. They did in the last three months of 1974."
Why did they panic? It was because of the tragic effects of the
1974 budget the budget which contributed so greatly 1: o present
inflation and unemployment.
Labor's solution then was to spend up big Government outlays
rose by 46 percent in a single year. The deficit rose by $ 293 million
to $ 2,600 million a nine-fold increase. Unemployment more than
trebled.
The Hurford plan now put forward makes precisely the same errors
agaLn. Government spending would rise; the deficit would rise;
inflation would rise; unemployment would rise. Clearly Labor
is panicking again.
The Government is determined to break the inflationary spiral.
In this fight, which closely affects every Australian, we are
going to stick to our guns.
Inflation hits all sections of the community, but none harder
than the rural producer who must pay increased prices while
having little or no influence on prices he receives.
He has been caught in the vice of rapidly rising costs, and often
diffi. cult or depressed markets combined with adverse seasonal
conditions. In the three years ended 30 June 1976, prices paid by farmers
rose by 76 percent. During the same period, prices received
rose by only 7 percent. The solution to this problem lies in
a combination of factors: the resources, skill, initiative
and stamina of the producer himself; improved prices in external
markets; sympathetic government action, and favourable seasonal
conditions.
You all remember the so-called rural policy of the last Government,
Labor attacked the rural sector on all fronts. There was the
Coombs Task force, the abolition of the bounty on superphosphate,
and the attempted reduction of the wool reserve price by
percent.
Yet the then Prime Minister had the gall to tell the audience
at an agricultural show in February 1974 " You have never had
it so good."
As Alan Reid, in his book " The Whitlam Venture" aptly
summed up the position: " Country dwellers were given
justification for believing that Whitlam's advisers, and among
them advisers on whom he leaned heavily, were not only indifferent
but hostile to the rural sector."
The policies of the present Government stand in sharp contrast
to those of Labor. The Government has formulated policies for
the benefit of the whole of our community, recognising the
close interdependence between the urban and rural communities.
Let us look briefly at some of those policies that have particularly
affected the rural sector.
1. Income Equalisations Deposit Scheme
This ' scheme supplements the existing provisions for averaging
incomes. It should greatly assist primary producers by providing
a flexible method of evening out fluctuations in farm incomes.
The scheme will enable them better to withstand natural disasters
and years of unusually poor returns. The aim of I. E. D.' s is to
allowt primary producers in those years in which return are
higher than expected because of unusual seasonal or market
circu: mstances to put aside income for the years when adverse
circu-mstances apply.
The s'cheme is particuarly helpful when a producer receives
unusivally high income at one time from forced sales and insurance
procceeds arising from a natural disaster like that recently
expe-rienced in Victoria. / 3
The scheme was ' recommended by the Industries Assistance Commission
and 3hould prove of substantial assistance to a great number
of primary producers.
Yet, despite the fact that the report originiated from the [ 1AC,
Mr Whitlam in Parliament last Tuesday scornfully dismiss3e d
the scheme as " the latest lurk for Pitt and Collins Street
farmars". Mr Whitlam's view of the rural community, it is
clear, remains unaltered.
The Dther recommendations of the IAG regarding averaging of
incomes have not been rejected by the Government and remain under
revi ew.
2. Dther Taxation Reforms
A number of other taxation and duty reforms have been introduced
which should substantially benefit the primary producer.
Tax indexation is an historic reform. All taxpayers will benefit
saving this year a total of $ 1050 million. Next year the amount
of tax foregone by the Government will be even greater.
To the rural producer tax indexation constitutes a significant
boost to after-tax income. The investment allowances provided
a much needed boost to private investment. The requirement for
distribution of profits by private companies has been eased.
Estate duty relief has been introduced for cases where an interest
in an estate passes to a surviving spouse.
3. Devaluation
Our decision to devalue on 28 November last year helped primary
producers considerably. 55 percent of primary production is
exported; devaluation helped regain our competitiveness
on world markets and will boost farm incomes.
Devaluation also brought forward some major resource projects
and greatly assisted the mining industry, particularly those producers
whose sales contracts are written in United States dollars.
The advantages of devaluation are many and can bring great
rewards, but there are also dangers if the other arms of economic
policy are relaxed. We intend to retain the benefits of devaluation
by making the appropriate adjustments in other arms of policy to
ensure that our overriding commitment to attain a fall in inflation
is achieved.
There have also been a substantial number of initiative! s
madE! in particular rural industries.
Today I shall mention just three.
The beef industry has been facing extremely difficult times.
The plight oT many beef growers is recognised by the Government
in its provision in the Clast budget of a further $ 15 million to
be made available for carry-on loan assistance to be jointly
financed with the States. Conditions of these loans have been
liberalised to enable producers who had already obtained finance
t~ o apply oneco agLiin. / 4
The Government has also suspended the meat export inspection
charge and is contributing in excess of $ 10 million for the
tuberculosis and burcellosis eradication campaign.
The best indicator for future prosperity in this industry
is the number of ' recent breakthroughs made in achieving
market access, particularly in Japan,-the the
the Soviet Union and the Eastern bloc.
The recent Australia-Japan Ministerial Committee meeting in
Tokyo resulted in a supplementary quota of 15,000 tonnes for the
second half ' of this fiscal year; a special additional quota
of 5,000 tonnes boiled beef and beef for Japan's school lunch
programme; an undertaking by the Japanese officials to
endeavour to announce the quota for the next six months as
soon as'possible after 1 April.
Negotiations have also led to an increase of 9,000 tonnes
in our entitlement in the U. S. market for 1977, and a probable
sale of about 100,000 tonnes of beef to the Soviet Union.
The prospects this year are for record meat sales. The abbatoirs
will be at or near full capacity and we look to the meat employee
unions to ensure that the abbatoirs are worked at full capacity.
Wheat growers have had a less difficult period, although total
production this year will be slightly down. The first advance
on wheat for 1976/ 77 has been increased 20 percent to $ 66 per tonne.
The home consumption price for wheat has been increased by
$ 6 per tonne.
For the 1976/ 77 season for wool the Government initially
guaranteed a minimum reserve price for 234 cents per kilogram clean
clip average, a rise of 14 percent. At that time the Government
also undertook to retain not less than such minimum price throughout
the 1977/ 78 season.
This has given a greater measure of stability to the industry
andhas facilitated forward planning and investment decisions.
After the devaluation in November, the minimum reserve price was
raised to 284 cents to give growers the full benefit of devaluation.
There has been continued strength in the wool market and the present
price of 322 cents is well above the reserve price.
These are but a few of the initiatives introduced by the Government
since taking office. They are indicative of the deep concern felt
by the Government at the shoddy treatment given to rural
producers by the Labor Government, and the steps taken to correct
the distortions which had occurred under Labor.
Further initiatives concerning the rural sector are under consideratic
at the moment.
For example, thc Government is committed to the establishment of
a rural bank to provide long term finance and specialist services
to the rural community.
The Government has already accepted a broadening of the role oE
the River MNurray Commission with regard to water quality in the
Murray, and with. the three states concerned,-will examine proposals
to be put forward by the Commission for increasing its -role
in the management of the Murray system.
The Liberal Party Federal Rural Committee and the Government
Backbench Rural Committee greatly assist us in our continual
review of policies for the rural sector.
I take this opportunity to commend the work of my colleague
Wal Fife, the Member for Farrer, who is an active member of
both those committees.
Two other matters of importance were announced this weekthe
referenda to amend the Constitution and the redistribution.
Bills are now before Parliament which seek to make four amendments
to the Australian Constitution. All four arise out of decisions
reached at the Hobart Constitutional Convention.
These proposals are: that Senate elections be held at the same time
as elections for the House of Representatives. That any casual
vacancy in the Senate be filled by a person of the same political
party as the Senator originally elected and for the balance
of his term. That there be a retirement age for judges of all
Federal courts, and that voters in the Territories be entitled
to vote at -referendums to alter the Constitution.
All four bills passed the House of Representatives
this week without a single dissenting voice.
Assuming the bills are passed by the Senate, referendums will be
held on 21 May to seek voters? approval for these changes. It appears
that-each of the proposals will enjoy the support of all parties.
If members of the Liberal Party actively support these fair and
equitable constitutional amendments as I am sure you will
I am confident that the referendums will be successful.
The Government is also taking the opportunity to enable the
Australian voters to choose a new national song. In view of
the prolonged debate over the relative merits of " God Save The
Queen", " Waltzing Matilda", " Song of Australia", and " Advance
Australia Fair", this approach seems to me to be the only fair
method of resolving this matter once and for all.
The Government has made it clear, however, that " God Save The Queen"
will be retained for all Regal and Vice-Regal occasions.
The redistribution which was announced this week has become
necessary at this time, because of the grave imbhalance in
numbers of voters between differing electorates, and bEcause
of the need to implement recent High Court decisions.
The coalition parties, to the great chagrin of Labor, quickly
reached agreement on this issue. The present provisions whereby
enrolments in electorates may not vary by more than 10 percent from
the quota will be retained. The Government was concerned to avoid
the inequity of very large electorates having more voters than
small city electorates. / 6
Thle redistribution which was proposed by Labor in 1975 and
rejected by the Senate did so provide the proposed seat of
Doncaster Templestowe was to have had 59,000 voters whereas
the huge electorate of Mallee was to have had 66,000 electors
on the roll.
The greater difficulty for a member of Parliament in adequately
serving a very large electorate is self-evident. In order
to avoid this inequity, the relevant legislation will be
amended to provide that rno electorate of more than
5000 square kilometres can have more voters than an electorate
of less than 5000 kilometres.
The rapid agreement reached between the Liberal and National
Country Parties is a good example of harmonious relationships
at work within the coalition and is a triumph for common sense.
Mr Chairman, I am delighted to have had an opportunity to speak
to this Convention today in Albury-Wodonga. This is a centre
which,, as the results of the last census indicate, is growing
rapidly. Over the past five years, Albu'ry-Wodonga has increased
in size by over 8,000 people or 18.1 percent.
This can be compared with Sydney and Melbourne which only grew
by 2.9 percent and 4.1 percent respectively over the same period.
The Government has confirmed its commitment to the development
of Albury-Wodonga by making available a further $ 6 million to
the Albury-Wodonga Development Corporation in addition to the
initial allocation of $ 15 million in the last budget.
We now look to private investors, and to the two state governments
to show an equal commitment. If such a commitment is forthcoming, thE
future of Albury-Wodonga seems assured.
Not only the rural community but the entire community has been throug.-
a most difficult period. When we were elected, we said it would
take three years to sort out the economic mess we inherited
from Labor. There are now signs of recovery, encouraging signs.
But there is more to be done and more will be done by the
Government to ensure that full recovery is achieved. In this
we need your' full support. I know you will not let us down.
I am confident that the Government will not let you down.
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