Embargoed until 7.00 p. m. Broadcast 3HA 11 September
3YB 15 September
MR CARMODY
USALI~~ LLF7 7/ 19
PRIME MINISTER
FOR PRESS 11 SEPTEMBER 1977
ELECTORATE TALK
There is now a better understanding amongst most Australians of
the difficulties facing many primary producers.
In many cases prices have stayed at low levels while costs have
risen sharply over the last five years. Thus it has become
necessary for the Commonwealth Government to give greater
assistance to primary industry. The present Government has taken
positive action to assist primary producers.
In the wool industry, the Government has substantially increased
the reserve price and at the same time established that price for
a minimum of two years, thus giving a long term stability to the
industry that it has not had for many years. Particularly as a
. resul. t-of that_,. and.. asa. result of the live sheep export to the
Middle East, prices of sheep are also much higher than they have
been for a long while.
For dairy farmers we introduced substantial underwriting to
enable higher interim payments to be made. We reintroduced the
superphosphate bounty on a reliable basis and we have u~ aintained
the nitrogen fertiliser bounty for an important and significant
industry.
A number of measures have been introduced to assist the cattle
industry.* We abolished the Meat Export Levy. We have introduced
a rural adjustment scheme with improved provisions, and assistance
for farm build-up, debt reconstruction and rehabilitation, and
assistance will also be provided for farm improvements, carry-on
finance and household support.
In the first Budget, we introduced the Income Equalisation Deposit
Scheme. I believe it is one of the most far reaching reforms for
rural producers, and has provided substantial assistance to farmers,
helping them to cope with the problem of fluctuating incomes. It
is interesting to note that this scheme was condemned outright by
Labor. In the last Budget, the Government announced that it would set up
a National Rural Bank. It will be a statutory body established
by legislation which will be introduced this session. The Treasurer
and Minister for Primary Industry are now working on precise details
as to how the Bank will operate. The Bank will make sure that
farmers get better access to finance and on terms which meet their
special needs. it will work alongside existing trading banks.
/ most of
-2
Most of Australia's rural industries rely heavily on export sales.
Some 90% of wool clip, 75% sugar, 65% wheat and 55% beef and veal
products are exported. In these circumstances, our agriculture is
highly vulnerable to fluctuations in world markets, and the protectionist
policies adopted by some importing countries. We have been
endeavouring in every possible way to secure improved access to
overseas markets for our primary products. For instance, we have
worked hard to protect the beef market in Japan.
The total Japanese imports of beef from all countries in 1973 was at
a peak 127,000 tonnes Australia's share of that-market was around
In February 1974, Japan closed their market to beef. This
uncertainty of 1974 early 1975 was clearly unsatisfactory for
Australian producers. That-market has now been reopened and from
June 1976-June 1977 Japan imported 85,000 tonnes.
In Kuala Lumpur recently I talked with the Japanese Prime Minister
Mr. Fukuda, and agreed that officials from both countries should meet
to try to establish a greater certainty and stability for the market
of Australian producers. I am pleased that the first round of these
talks will take place in Tokyo later this month.
The Labor Government not only temporarily lost access to the Japanese
market, they virtually lost access to the markets in the European
Community. Now, for the first time, an Australian Government has taken the
question of the European Community seriously.
The EEC, with 260 million people, 40% of the world's trade and the
wealthiest grouping of countries the world has seen, greatly inhibits
access by agriculture exporting countries. And this is why I have
appointed John Howard as Minister for Special Trade Negotiations to
deal with European Trade. He will be leaving shortly on his first
round of talks with the European Community.
There has beensrre trade success in other areas. The sale earlier
this year of 3 million tonnes of wheat to China is the largest ever
negotiated. Australia has made further inroads into Middle East
markets for lamb and the volume of cheese sold to Japan has continued
to increase.
In this coming week, the Treasurer will announce major improvements to
the tax averaging schemes for farmers.
The Government is implementing aspects of an IAC Report relating to
averaging for farmers. The Government has decided that the present
ceiling of $ 16,000 on tax averaging should be abolished. There will
be no ceiling for farmers in the future. At the same time, we are
making substantial changes in tax averaging that will greatly assist
primary industry. The Treasurer will announce details during the
course of this week.
Further, the Government will examine other proposals designed to
relieve the difficulties of the beef industry. Once decisions are
taken, there will be no delay in their announcement.
The Australian community needs to understand that those who depend
entirely on beef for a living are in a very difficult position. / I am
3
I am convinced however that in the long term there are good
prospects for the beef industry. I am also convinced that
sufficient assistance should be given to industry to carry
on through the present difficulty.
The present Governmenthas a solid record of assistance to the
farmer. I do not want to dwell on the past, but Labor established
the Coombs task force that destroyed the fabric of support that
had been built over many years. Further, it abolished the superphosphate
subsidy. It greatly put up costs through inflation.
It sought to reduce the reserve price of wool. It had no understanding
or sympathy for the farming community.
Compare that record with our record of proposals to assist the
wool, dairy and beef industries.
In the next few days, further substantial measures will be
announced to help the beef industry.
Compare their record with the establishment of the Income
Equalisation Deposits, the establishment of the National Rural
Bank and the provision of the averaging for income tax, together
with measures for the beef industry, which will be introduced
this week.