This morning representatives of the Australian Woolgrowers' and Grazierst Council and the Australian Wool and Meat Producers' Federation had a frank discussion with the Prime Minister and several of his Ministerial colleagues on developments in the economy and the effects on the wool and meat industries of possible measures to expand employment.
The Australian i. Toolgrowers' and Graziers' Council was
represented by Mr. Scott, President; Messrs ToL. Bull,
D. L. McMaster and R. I. McAuley, Members of the Executive
Committee; Mr. G. D. Chislett, Economi. st; and Mr. I. P. Nicholas,
Executive Officer. The Australian Wool and Meat Producers'
Federation was represented by Mr. L. M. Ridd, Mr. J. Kerin, and
Mr. A. Laidlaw, Vice Presidents; and Mr. A. R. Johnston,
Executive Dfficer.
The Council representatives said that there was a lack
of evidence that tth current flow of imports is, in fact,
depressing secondary industry, although the effect of imports
may be contributing to unemployment in a very few sections of
some industries. The Council also doubted whether the
re-introduction of import restrictions could be expected to
stimulate consumer demand, Unless consumption rises, very large
reductions in imports would be necessary in order to create an
appreciable increase in the demand for local manufactures.
Moreover, re-introduction of quantitative restrictions for
protective purposes would handicap the export sector by the
increase in costs and loss of efficiency which such controls
would engender. In the Council's view the Tariff Board is the
appropriate body to determine the protection required by
industry. The Council believes that Section 17A " Emergency"
tariff hearings are being as promptly ezecuted as is compatible
with the maintenance of a semblance of judicial inquiry and
considered findings. These views were also shared by the
Federation's representatives.
Representatives of the Council drew attention to the
fact that the rise in prices and costs in Australia had been
severe relative to similar movements in other countries. For
these and other reasons the Council requested an expert
independent inquiry into the problems of ensuring a balanced
development of the Australian economy through the price
mechanism. This could lead to the adoption of new principles
for wage and tariff making, together with the introduction of
anti-restrictive practices legislation.
Both the Council and the Federation representatives
said they believed that as time marches on a growing proportion
of the community will come to realise that the measures
introduced by the Government in November, 1960 have had the
effect of producing a cost and price stability which provides a
sound basis for further development. At the same time they
recognized that there is an immediate problem of unemployment
which must be corrected,
Representatives of the Federation mentioned that in
their view it appeared necessary to provide a time limitation on
tariff duties so that. after a specified pericd, these could be
automatically re-examined in the light of existing circumstances
in the industry receiving protection.
Both organizations expressed the view that availability of long term credit in primary industry was inadequate and requested full examination of this matter. Mr. Menzies said that he and those of his colleagues present found it extremely valuable to hear the views of wool and meat producers whose activities are responsible for such a large proportion of our export earnings. He assured those
present that the Government would give close consideration to all the views expressed as soon as the present series of consultations was concluded.
CANBERRA,
25 January, 1962.