X-5 00 pmo!
J-TI -ALl A
FOR MEDIA SUNDAY, 29 JU. NE, 1980
ELECTORATE TALK
The State Premiers and the Commonwealth, meeting in Loan
Council in Canberra last Thursday and Friday took major
decisions relating to Australia's national development.
I want to tell you tonight about those decisions and what
they mean for the future of Australia.
While the oil crisis poses difficulties for all countries,
it has also presented great opportunities for Australia.
The doubling of the price of oil in less than 18 months has
increased the demand for our resources of coal and has made
Australia an attractive location for energy-intensive
manufactures such as aluminium smelting.
Some $ 17 billion worth of announced private sector investment
projects that are planned to take place over the next few
years are ample evidence of interest in Australian development.
New figures will be released shortly that will sigrnificantlv
upgrade this total.
This in'vestment obviously requires investment by governments
in pov# er generation, in transport and export facilities.
The oil crisis has affected the need to accelerate development
in another way.
It has made it imperative for us to reduce our dependence
on supplies of imported crude oil.
I therefore wrote to the Premiers in November 1979 asking them
to submit proposals to accelerate the development of
coal-fired electricity generation capacity in Australia.
We have been pleased with the response to our invitation.
There is no way the States could have provided from their own
resources the investment that is needed for development
and to take advantage of the opportunities provided to
Australia.
2
Governments must invest in electricity generation, railways,
coal loaders, telecommunications enJ in other facilities to
provide the basic strength and supnport for resource development
and processing and for private invest-menrt. generally.
So two years ago we agreed on a special borrowing programme
to underwrite Australia's national development.
At last week's Loan Council meeti:. c we approved new projects,
and major revision to previous projects, involving borrowings
of $ 1.5 billion.
This brings the total value of borrowings approved under the
programme to $ 4.7 billion over a number of years.
In addition there are a number of other projects which are
still under examination.
$ 1.3 billion of the new borrowings approved at our recent
meeting were for electricity generation.
They include large additional investments at Loy Yang in
Victoria and at Bayswater in New South Wal-es,
1.0,300 megawatts of generating capacity will be added to Australian
grids as a result of the programme.
And there is almost another 5,000 megawatts of capacity in the
projects from New South Wales, Queensland and the Northern Territory
that are still being examined by the Loan Council.
Railway electrification offers another way of reducing our
dependence on petroleum fuels.
At the Loan Council meeting, the Commonwealth indicated its
support for the electrification of three lines in Queensland
which are essential to resource development Norwich Park to
Hay Point, Blackwater to Gladstone and Collinsville to Abbott Point.
Electrification of the Gosford-Newcastle line in New South Wales
had been agreed by the Loan Council at an earlier meeting.
Another electrification project Waterfall to Port Kembla in
New' South Wales is being actively considered by the Loan Council.
The Commonwealth has said that it % w. ill support the electrification
of three other resource railway lines, two in New South Wales
and one in Western Austtalia, if and when proposals are lodged
by the States.
The Commonwealth has also offered to fund half the cost of
electrifying the Sydney-Melbourne railway line.
Unfortunately New South Wales was not in a position to
commit itself to this project. / 3 fl
3
It is my intention to talk to Premier Wran at the first
opportunity and I hope that this wi. l resolve the maLter.
All. these projects are a dramatic illustration of our
commitment to Australia's national development, and of our
desire to channel Government spending into directions othat
will build the basic strength of Australia.
But we have not forgotten that the development will not
occur unless we continue the firm economic policies that we
have consistently followed during the past five years.
We are concerned to maintain a steady pace of economic
development, and not to place too sudden a demand on
the resources of skilled labour and the capital market,
in a way that would add to inflationary pressures.
Because of this, and because of the size of these new
projects and the need to proceed in an orderly and carefully
integrated manner, the Commonwealth arid the States have
agreed to look further at the borrowing proposals to make
sure that there is an even flow and that the investment
programmes expand carefully.
Australia has entered an exciting decade during which we
will see development and investment unparalleled in our
country.
With our supplies of minerals, our vast reserves of energy
along with the quality and calibre of our people we have
opportunities that are second to none.
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sW OSFCORD/ N EW CtS-TIE RAIL
? LD R EIRSAAEI L ELECTR IF f CATI O'lO
QLD: ; ORSCH PA HAY P RAI L
ELECTRIFICAT ION
OLAM-LCK'' ATER ( 11INES) GLADSONE
RAIL ELECTRIFICATION
Q LD COLLI. NS-ABBOT POINT RAIL
ELECTRIF ICATI ON
ELECTRICITY GENERATION PROJECTS
NSW ERARING ELECTRICITY
SW BAYSIATER ELECTRCi iTY
VIC LOY YANG A POWNER STATION
OLD POWER. STATIONS
SA NORTHERN POWdER STATION
WA' PILBARA REGION PrOWER SUPPLY
1.; TE(~ iRTA i\ ON~
A KWINAHA POW: ER STATION CONVERSION
TpS HYPPNO-ELECIR IC POW1iER DEVELOPMENT
BAYS1,1ATER EXTENS 1 ON'Y
VIC LOY YANG A POW. IER STATION ( REVISION
LOY YAN G B POWER STATION*
ADD IT1iONAL POW11ER GENERATI ON FACIL 375 200 ' t92.6
irs 2 -5.73 i 5 MILLI ON
131 68
NOT AWVA LA3LE
NOTAVA I LAB L. E.
NOT AVAILABLE
199
264 135 383.3
.460 138, 7
39.1
112.8 375 200 L492, 6.
236.3
I MFP~ EAA STRUCTURE PROPO. 3ALS, JUNE 19E' 0 MEETIiNG,, COR[ SiMG
SUBSTANT I AL RE'IS IONS A) h, \: rD13 ONs AND NEW P.? OJECTS... L
I. iD WITH RESOURCE DEvELM i Ii.-NT
Nas a as TOTAL
COAL"! EXPORT FACILITIES,, PORT K\ EMBLA
COAL~ i EXPOIRT F7ACILITIES HAY PT
RE D2' L I FF
D. A*., P1El'-P-PEBTH-''[ PIPELINE
WRSLEY RAI L AND WATER
1OERSHT SHELF GAS INFRASTRUCTURE
NORTH WIEST SHELF GAS -JERVOISE BAY~
PORTLA[' D TRAUISMI SSI ON" LI NE
W' 1ORLD TRADE-CENilTRE
WIURDEE BOLUIC PIPELINE
WVATER SUPPLY
TELECXQMi, UN1l CATI ION q
ADELAIDIE--CRYSTAL BROOK RAILWAY
STAINDARD ISAT ION*
GRAIN ELEV'ATORS 122
SbA s TRLI CTURE POOASJIE 9r) tFiHk) CO; lPR I S I NG
tuSAYV I1S1 ONS AND LXTV IO1~ 0 ~ PROEE CT
C' JE FC EXC!.. UD! S I1ILr OJ~ SDU PI L EIIU-(, I F I C. ATI1 ON
NEW
PROJECTS 7,-l
* 122.8 1.29 9
6.2
1,551.7 38p 7,1
122,8 70 .3
13,. LI 0
62 55.9
311.3
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