SPEECH , DELIVERED
SENATOR THE HON. A. J. MESSNER
MINISTER FOR VETERANS' AFFAIRS
MINISTER ASSISTING THE TREASURER
AT THE
1982 ANNUAL CONFERENCE OF THE
AUSTRALIAN COUNCIL OF LOCAL GOVERNMENT ASSOCIATIONS
ALICE SPRINGS
ON BEHALF OF
THE RT. HON. J. M. FRASER CH MP
PRIME MINISTER
MR PRESIDENT, LADIES AND GENTLEMEN
I AM VERY PLEASED TO BE ABLE TO REPRESENT THE PRIME
MINISTER AND ADDRESS YOU ON THIS OCCASION.
I ALSO APPRECIATE THIS OPPORTUNITY TO BE HERE IN ALICE
SPRINGS. APART FROM ITS OBVIOUS ATTRACTIONS, WE SOUTH
AUSTRALIANS FEEL A SPECIAL AFFINITY FOR THE NORTHERN
TERRITORY. IT WAS, AFTER ALL, A PART OF THE STATE
UNTIL 1911 WHEN IT WAS TRANSFERRED TO THE COMMONWEALTH,
AND BY BOTH HISTORY AND GEOGRAPHY WE REMAIN THE STATE
WITH CLOSEST LINKS TO THE TERRITORY.
A LOT HAS HAPPENED, HOWEVER, SINCE SOUTH AUSTRALIA SHED
RESPONSIBILITY FOR THE INFANT NORTHERN TERRITORY NEARLY
72 YEARS AGO. THE POPULATION OF THE TERRITORY IN 1911
( EXCLUDING ABORIGINES, WHO AT THAT STAGE WERE NOT
INCLUDED IN CENSUSES) WAS A MERE 3,300. TODAY ALICE
SPRINGS ALONE IS OVER 5 TIMES THAT SIZE, AND THE
TERRITORY'S POPULATION IS 130,000 AND GROWING MUCH FASTER
THAN THE REST OF THE COUNTRY. THE PROSPECTS ARE GOOD FOR
A CONTINUATION OF THE ECONOMIC DEVELOPMENT THAT HAS
PRODUCED THIS STRONG GROWTH. THE TERRITORY HAS NOW
CEASED TO BE A WARD OF THE COMMONWEALTH AND, THROUGH
SELF-GOVERNMENT, EXERCISES MOST OF THE POWER OF A
STATE. AS FOR LOCAL GOVERNMENT THE REASON WHY WE ARE
HERE, AFTER ALL ALICE SPRINGS, DARWIN, KATHERINE AND
TENNANT CREEK ALL HAVE THEIR OWN LOCAL COUNCILS.
I
SO YESTERDAY'S CHILD IS FAST BECOMING A LUSTY YOUNG
ADULT, AND THE REST OF AUSTRALIA IS SITTING UP AND
TAKING NOTICE. IN SOUTH AUSTRALIA WE LOOK FORWARD
VERY MUCH TO DEVELOPING CLOSER TIES WITH OUR VIGOROUS
NORTHERN NEIGHBOUR. THERE IS ALREADY TANGIBLE SIGN OF
THIS IN THE NEW RAILWAY FROM TARCOOLA TO ALICE SPRINGS,
AND WITHIN FIVE YEARS THE STUART HIGHWAY WILL BE SEALED
ALL THE WAY. LOOKING TOWARDS THE TOP END, THERE IS THE
PROSPECT OF THE LONG-AWAITED AND OFT-PLANNED RAILWAY
LINKING DARWIN TO ALICE SPRINGS AND THE REST OF
AUSTRALIA. THE PAST YEAR
SINCE YOU MET LAST IN THIS GATHERING THERE HAVE BEEN A
NUMBER OF IMPORTANT DEVELOPMENTS IN AUSTRALIA AND IN
THE WORLD GENERALLY THAT HAVE HAD, AND WILL CONTINUE
TO HAVE, A SIGNIFICANT BEARING ON THE TASKS YOU ARE
ASKED TO PERFORM.
THE WORLD ECONOMY IS IN THE GRIP OF A VERY SERIOUS
DOWNTURN AND ITS EFFECTS ARE FAMILIAR TO US ALL. IN
ALL THE MAJOR INDUSTRIALISED COUNTRIES, PRODUCTION IS
DEPRESSED AND UNEMPLOYMENT IS RISING. FOR AUSTRALIA
THIS HAS MEANT:-
3.
REDUCED DEMAND AND FALLING PRICES FOR OUR EXPORTS:
OVERSEAS INDUSTRIES ARE REDUCING THEIR DEMAND FOR
RAW MATERIALS SUCH AS IRON AND COAL;
DEFERMENT OF MANY DEVELOPMENT PROPOSALS AS PROSPECTIVE
OVERSEAS MARKETS FADE; AND
INCREASED COMPETITION FROM IMPORTS.
WE CANNOT KEEP OURSELVES IMMUNE FROM THESE TRENDS. AND
WHILE WE REMAIN LESS ADVERSELY AFFECTED THAN MANY OTHER
COUNTRIES, THERE ARE TWO ADDITIONAL MATTERS OF CONCERN
FOR AUSTRALIA. OUR INFLATION RATE IS PRESENTLY RUNNING
ABOVE THOSE OF MOST OF OUR MAJOR COMPETITORS. FOR ALL
OF US IN GOVERNMENT, BE IT FEDERAL, STATE OR LOCAL, THE
REDUCTION IN THE RATE OF INFLATION MUST REMAIN A PRIME
) OBJECTIVE. THE SECOND PROBLEM I MENTION IS, OF COURSE,
THE WIDESPREAD DROUGHT THAT IS DEVASTATING SO MUCH OF
EASTERN AUSTRALIA.
IN SUCH TIMES THE PROBLEMS OF ECONOMIC MANAGEMENT FACING
THE COMMONWEALTH GOVERNMENT INCREASE SIGNIFICANTLY.
SUBDUED ECONOMIC ACTIVITY HAS CONCOMITANT EFFECTS ON
REVENUE GROWTH. HIGHER UNEMPLOYMENT, THE NEED FOR
DROUGHT RELIEF, AND THE GENERAL CASE FOR ECONOMIC
STIMULUS, LEAD TO INCREASED EXPENDITURES OR TO TAX
CUTS. BUT THE CONTINUING NEED TO CONTAIN INFLATION,
AND THE ADVERSE EFFECTS OF HIGH INTEREST RATES, ARE A
POWERFUL CONSTRAINT AGAINST ALLOWING THE BUDGET DEFICIT
TO BALLOON OUT.
THE COMMONWEALTH GOVERNMENT HAS NEVERTHELESS BEEN
ADDRESSING THE ECONOMIC CHALLENGES FACING AUSTRALIA
IN A VIGOROUS AND POSITIVE WAY. THE HOUSING PACKAGE
) PROVIDED IN MARCH, THE ECONOMIC MEASURES AGREED AT THE
PREMIERS' CONFERENCE AND LOAN COUNCIL MEETING IN JUNE
FOLLOWED BY THE ASSISTANCE FOR INDUSTRY ANNOUNCED IN JULY
AND THE MEASURES SET OUT IN THE BUDGET BROUGHT DOWN BY MY
COLLEAGUE THE TREASURER IN AUGUST HAVE ALL BEEN DESIGNED
TO SHIELD AUSTRALIANS SO FAR AS IS POSSIBLE FROM THE
ADVERSE EFFECTS OF THE WORLD RECESSION AND TO PLACE US IN
A POSITION WHERE WE WILL BE ABLE TO TAKE ADVANTAGE OF
THE WORLD UPTURN WHENEVER IT COMES.
SO, AS WE ARE ALL AWARE, THE PAST YEAR HAS NOT BEEN AN
EASY ONE FOR GOVERNMENTS AT ANY LEVEL. WE HAVE ALL HAD
TO TIGHTEN OUR BELTS AND ENSURE THAT THOSE RESOURCES WE
HAVE ARE USED AS EFFICIENTLY AND EFFECTIVELY AS POSSIBLE.
IN SUCH CIRCUMSTANCES THE COMMONWEALTH'S CONTINUING
COMMITMENT TO ASSISTING LOCAL GOVERNMENT IS OF EVEN
GREATER SIGNIFICANCE.
TAX SHARING
IN 1982-83 GRANTS TO LOCAL GOVERNMENT UNDER THE PERSONAL
INCOME TAX SHARING ARRANGEMENTS HAVE RISEN BY 21 PERCENT.
THIS CONTINUES A SERIES OF ANNUAL INCREASES WHICH HAS SEEN
GENERAL REVENUE ASSISTANCE TO LOCAL GOVERNMENT RISE FROM
MILLION UNDER THE LABOR GOVERNMENT TO $ 424.9 MILLION
IN 1982/ 83. AS A RESULT LOCAL GOVERNMENT HAS RECEIVED
ABOUT $ 1783 MILLION IN UNTIED GRANTS IN THE SEVEN YEARS
OF THE TAX SHARING ARRANGEMENTS. THE FACT THAT THE GRANTS
ARE UNTIED IS AS IMPORTANT AS THE AMOUNTS PROVIDED,
BECAUSE THIS GIVES LOCAL AUTHORITIES THE FREEDOM AND
RESPONSIBILITY TO DETERMINE THEIR OWN EXPENDITURE
PRIORITIES. THE COMMONWEALTH IS AWARE OF THE DEBATE WITHIN THE
ASSOCIATION ON WHETHER THE GRANTS SHOULD CONTINUE TO BE
BASED ON 2 PERCENT OF PERSONAL INCOME TAX COLLECTIONS
IN THE PREVIOUS FINANCIAL YEAR OR BE RELATED TO TOTAL
TAX COLLECTIONS. IT IS EASY TO UNDERSTAND THE CONCERN
OF LOCAL GOVERNMENT WHEN THERE IS SPECULATION ABOUT
BROADENING OF THE TAX BASE TO REDUCE THE BURDEN ON PAYE
TAXPAYERS. LET ME JUST SAY THAT THE COMMONWEALTH WOULD
BE PREPARED TO CONSIDER ANY CASE FOR CHANGE WHICH LOCAL
GOVERNMENT COLLECTIVELY THROUGH THIS ASSOCIATION WAS TO
PUT FORWARD.
THE COMMONWEALTH IS ALSO AWARE THAT LOCAL GOVERNMENT
WOULD LIKE TO SEE ITS SHARE OF PERSONAL INCOME TAX
COLLECTIONS ( OR SOME BROADER TAX BASE) RAISED FROM 2 PERCENT
TO SAY 3 OR 4~ PERCENT. THIS IS AGAIN UNDERSTANDABLEALL
LEVELS OF GOVERNMENT FACE A SITUATION WHERE THE
DEMANDS ON THEIR RESOURCES ARE EVER-GROWING. I AM
SURE THAT NO ONE WISHES ME TO REITERATE VIEWS ON THIS
ISSUE WHICH HAVE BEEN EXPRESSED ON PREVIOUS OCCASIONS.-
BUT MY COLLEAGUE, THE HON. IAN WILSON, MP, MADE SOME
IMPORTANT POINTS WHEN, AS PARLIAMENTARY SECRETARY TO
THE PRIME MINISTER, HE ADDRESSED YOU IN 1980:-
THOSE WISHING A GREATER SHARE OF THE PUBLIC'S MONEY
NEED TO BE ABLE TO JUSTIFY CLEARLY THEIR NEED FOR IT
-YOU MUST JUSTIFY SUCH A REQUEST ON THE BASIS OF
YOUR REVENUE NEEDS; YOUR TAXING CAPACITY; YOUR
TAXING EFFORT AND ANY INCREASE OR DECREASE IN
LOCAL GOVERNMENT'S FUNCTIONS AND RESPONSIBILITIES;
* AS FAR AS POSSIBLE, THOSE MAKING A CLAIM ON THE PUBLIC
PURSE SHOULD TAKE THE RESPONSIBILITY FOR LEVYING THE
TAXES, CHARGES, ETC. REQUIRED TO RAISE IT, WITHOUT
LEAVING THE " DIRTY WORK" TO OTHERS; AND
TO MAINTAIN ITS INTEGRITY AS AN INDEPENDENT ENTITY,*
LOCAL GOVERNMENT MUST TAKE RESPONSIBILITY FOR A
LARGE PART OF ITS OWN REVENUE RAISING.
AT THE SAME TIME, IT IS ONLY FAIR THAT I SHOULD NOT GIVE
ANY FALSE ENCOURAGEMENT. AS I HAVE NOTED, THE PRESSURES
ON THE COMMONWEALTH'S BUDGET IN PRESENT ECONOMIC
CIRCUMSTANCES ARE VERY GREAT. AND MANY OTHER SECTORS
OF THE COMMUNITY COULD QUITE LEGITIMATELY POINT TO THIS
YEAR'S 21 PERCENT INCREASE IN UNTIED FUNDS FOR LOCAL
GOVERNMENT AS BEING CONSIDERABLY MORE GENEROUS THAN THE
TREATMENT THEY HAVE RECEIVED.
ONE ASPECT OF THE TAX SHARING ARRANGEMENTS WHICH IS OF
CONSIDERABLE AND GROWING CONCERN TO THE COMMONWEALTHI
HOWEVER, IS A TENDENCY BY SOME STATE GOVERNMENTS TO USE
THE INCREASED FUNDS MADE AVAILABLE BY THE COMMONWEALTH
FOR LOCAL GOVERNMENT AS AN EXCUSE TO REDUCE STATE FUNDING
OF PROGRAMS WHICH DIRECTLY AFFECT LOCAL GOVERNMENT. A
RECENT INSTANCE OF THIS OCCURRED IN THE NEW SOUTH-WALES
BUDGET. THE NEW SOUTH WALES GOVERNMENT WITHDREW ITS
CONTRIBUTION TO THE LOCAL GOVERNMENT ASSISTANCE FUND
AND REDUCED ITS COMMITMENT TO THE MANDATORY PENSIONER
REBATE SCHEME. THE NEW SOUTH WALES MINISTER FOR LOCAL
GOVERNMENT AND LANDS, THE HON. A. R. L. GORDON, MADE IT
CLEAR IN HIS SPEECH TO THE NEW SOUTH WALES LOCAL
GOVERNMENT ASSOCIATION IN GOULBURN IN OCTOBER THAT THE
STATE GOVERNMENT'S DECISIONS WERE BASED ON A VIEW THAT
THE 21 PERCENT RISE IN FEDERAL REVENUE SHARING MONEY
GAVE LOCAL GOVERNMENT THE CAPACITY TO ABSORB THE
REDUCTIONS IN STATE FUNDING. THE COMMONWEALTH, HOWEVER,
IS FIRMLY OF THE VIEW THAT SUCH AN APPROACH IS A MAJOR
IMPEDIMENT TO THE DEVELOPMENT OF A CO-OPERATIVE AND
HARMONIOUS RELATIONSHIP BETWEEN THE THREE SPHERES OF
GOVERNMENT. LOAN COUNCIL
THE COMMONWEALTH'S PACKAGE TO THE LOAN COUNCIL THIS YEAR
PRODUCED SOME HISTORIC DECISIONS. THE STATES NOW HAVE
FREEDOM TO DETERMINE THE SIZE OF THEIR ELECTRICITY
BORROWINGS AND TO SET THE INTEREST RATES ON THEM. THIS
WILL MAKE THE STATES RESPONSIBLE FOR THEIR OWN ELECTRICITY
PROGRAMS, AND THAT GREATER DEGREE OF RESPONSIBILITY WILL
BE WELCOMED BY THE COMMUNITY.
UNDER THE ' GENTLEMEN'S AGREEMENT' ORIGINATING IN 1936, THE
LOAN COUNCIL HAS APPROVED AN AGGREGATE ANNUAL NEW MONEY
BORROWING PROGRAM FOR ' LARGER' SEMI-GOVERNMENT AND LOCAL
AUTHORITIES. AT THE JUNE 1982 MEETING, THE LOAN COUNCIL
APPROVED A NEW MONEY BORROWING PROGRAM FOR THE STATES'
' LARGER' NON-ELECTRICITY AUTHORITIES FOR 1982-83 OF
$ 878 MILLION ( EXCLUDING ADDITIONS FOR INFRASTRUCTURE
FINANCING).
THE LOAN COUNCIL ALSO DECIDED AT THAT MEETING TO
INCREASE FROM $ 1.2 MILLION ( THE LIMIT WHICH HAS APPLIED
SINCE 1979-80) TO $ 1.5 MILLION, THE ANNUAL LIMIT TO
WHICH SMALLER AUTHORITIES CAN INDIVIDUALLY BORROW WITHOUT
REQUIRING A LOAN COUNCIL PROGRAM. THE LOAN COUNCIL FURTHER
APPROVED WORKING ARRANGEMENTS THAT WOULD ALLOW THE STATES,
IF THEY WISHED, TO ESTABLISH CENTRAL BORROWING AUTHORITIES
TO RAISE FUNDS, INTER ALIA, ON BEHALF OF ' SMALLER'
AUTHORITIES. THE COMMONWEALTH IS PHILOSOPHICALLY ATTACHED TO THE
CONCEPT OF PROVIDING GENERAL PURPOSE RATHER THAN SPECIFIC
PURPOSE FUNDING FOR BOTH STATE AND LOCAL GOVERNMENTS.
BUT WHILE MAJOR EMPHASIS IS PLACED ON THE TAX SHARING
ARRANGEMENTS, THERE REMAIN SEVERAL AREAS WHERE SIGNIFICANT
CONTRIBUTIONS ARE MADE FOR SPECIFIC PURPOSES.
COMMONWEALTH ROAD FUNDING
IN THE BUDGET, THE COMMONWEALTH ANNOUNCED THE ESTABLISHMENT
OF THE AUSTRALIAN BICENTENNIAL ROAD DEVELOPMENT ( ABRD)
PROGRAM. THIS IMAGINATIVE PROGRAM IS A MAJOR INITIATIVE
INVOLVING EXPENDITURE OF ABOUT $ 2,500 MILLION TO
SIGNIFICANTLY UPGRADE AUSTRALIA'S ROAD SYSTEM BY 1988.
REVENUE RAISED BY WAY OF A SURCHARGE ON PETROL AND DIESEL
FUEL EXCISE WILL BE PAID INTO A SPECIAL TRUST FUND FROM
WHICH THE AUSTRALIAN BICENTENNIAL ROAD DEVELOPMENT PROGRAM
WILL BE FINANCED.
THE PROGRAM HAS THE FOLLOWING BICENTENNIAL OBJECTIVES:-
TO BRING THE NATIONAL HIGHWAY SYSTEM TO ACCEPTABLE
STANDARDS;
STO ASSIST THE DEVELOPMENT OF MAJOR URBAN AND RURAL
ARTERIAL ROADS AND, WHERE DESIRED BY THE STATES, TO
SASSIST WITH APPROVED URBAN PUBLIC TRANSPORT PROJECTS;
STO ACCELERATE THE CONSTRUCTION OF CURRENT DEVELOPMENTAL
ROAD PROJECTS, INCLUDING ROADS OF NATIONAL TOURISM
IMPORTANCE; AND
TO ASSIST LOCAL GOVERNMENT AUTHORITIES TO UPGRADE THEIR
ROAD SYSTEMS.
11
THE AUSTRALIAN BICENTENNIAL ROAD DEVELOPMENT PROGRAM IS
ADDITIONAL TO THE EXISTING COMMONWEALTH FIVE YEAR, $ 3,650 MILLION
ROADS PROGRAM. UNDER BOTH PROGRAMS, FUNDS ALLOCATED IN
1982/ 83 TOTAL $ 914 MILLION ( AN INCREASE OF $ 229 MILLION OR
33% OVER 1981/ 82) AND $ 1,208 MILLION IN 1983/ 84 ( AN INCREASE
OF $ 294 MILLION OR 32% OVER 1982/ 83).
WITH REGARD TO LOCAL ROADS, $ 27 MILLION HAS BEEN ALLOCATED
UNDER THE AUSTRALIAN BICENTENNIAL ROAD DEVELOPMENT PROGRAM
DURING 1982/ 83 TO ASSIST LOCAL GOVERNMENT UPGRADE THEIR
LOCAL ROAD SYSTEMS. WHEN COMBINED WITH THE FUNDS* ALREADY
BEING PROVIDED UNDER THE FIVE YEAR PROGRAM, THIS WILL BRING
THE TOTAL COMMONWEALTH CONTRIBUTION FOR LOCAL ROADS TO
( ABOUT $ 200 MILLION, AN INCREASE OF SOME 24 PER CENT OVER THE
1981/ 82 ALLOCATIONS.
THE AUSTRALIAN BICENTENNIAL ROAD DEVELOPMENT PROGRAM MARKS
AN IMPORTANT STEP FORWARD IN THE COMMONWEALTH'S EFFORTS TO
UPGRADE THE AUSTRALIAN ROAD SYSTEM. THIS PROGRAM, AS WELL
AS THE ASSISTANCE PROVIDED UNDER OUR FIVE YEAR ROADS PROGRAM,
SHOULD ALLOW THE AUSTRALIAN ROAD SYSTEM TO BE DEVELOPED TO
A HIGH STANDARD BY 1988 ENABLING SUBSTANTIAL ECONOMIC AND
SOCIAL BENEFITS TO BE DERIVED BY ROAD USERS AND THE NATION
AS A WHOLE.
AERODROME LOCAL OWNERSHIP PLAN
ALSO IN THE TRANSPORT FIELD, THE COMMONWEALTH BUDGET PROVIDED
FOR A VERY SUBSTANTIAL INCREASE IN FUNDING FOR THE AERODROME
LOCAL OWNERSHIP PLAN. IN 1982/ 83 $ 40 MILLION WILL BE SPENT
I
12.
ON WORKS AT SUCH WIDELY SPACED CENTRES AS TAMWORTH, CAIRNS,
DEVONPORT, COFFS HARBOUR, BUNDABERG, PORT HEDLAND AND WYNYARD.
THE AERODROME LOCAL OWNERSHIP PLAN IS LONG STANDING GOVERNMENT
POLICY AND A CO-OPERATIVE ENDEAVOUR BETWEEN COMMONWEALTH AND
LOCAL AUTHORITIES TO PROVIDE, OPERATE AND MAINTAIN AERODROMES
SERVING LOCAL COMMUNITIES. THE AERODROME LOCAL OWNERSHIP PLAN
IS ALSO CONSISTENT WITH GOVERNMENT PHILOSOPHY AS EXPRESSED IN THE
RCF ANNOUNCEMENT THAT STATE AND LOCAL GOVERNMENTS ARE CLOSER
TO THE RECIPIENTS OF MANY SERVICES AND ARE BETTER PLACED TO
ADMINISTER THEM.
JTHROUGH THE PROVISIONS OF THE AERODROME LOCAL OWNERSHIP PLAN
THE COMMONWEALTH UNDERTAKES TO UPGRADE AERODROME MOVEMENT
AREAS-TO AN AGREED STANDARD TO MEET CURRENT AND FORESEEN
AVIATION NEEDS, AT FULL COST TO ITSELF AT THE TIME OF TRANSFER.
THE COMMONWEALTH ALSO AGREES TO PROVIDE FUNDS FOR FIFTY PER CENT
OF AGREED AERODROME DEVELOPMENT AND MAINTENANCE COSTS, INCLUDING
TERMINAL FACILITIES, ON A CONTINUING BASIS. THE LOCAL
AUTHORITY ACCEPTING OWNERSHIP OF THE AERODROME RECEIVES THE
FACILITY WITHOUT COST OR CHARGE BY THE COMMONWEALTH AND
RETAINS ALL REVENUES RAISED FROM THE AERODROME AS OFFSET
AGAINST ITS SHARE OF DEVELOPMENT AND MAINTENANCE COSTS.
LOCAL GOVERNMENT ALSO WILL BENEFIT SIGNIFICANTLY FROM THE
$ 201 MILLION BEING MADE AVAILABLE BY THE COMMONWEALTH IN THE
NEXT TWO YEARS FOR CAPITAL PROJECTS TO ASSIST THE AGED AND
HANDICAPPED OF OUR COMMUNITY, ANNOUNCED BY THE MINISTER
13.
FOR SOCIAL SECURITY, SENATOR THE HON. FRED CHANEY, ON
11 AUGUST 1982.
AGED OR DISABLED PERSONS' HOMES
UNDER THE AGED OR DISABLED PERSONS HOMES ACT 1954 LOCAL
GOVERNMENT AUTHORITIES ALONG WITH RELIGIOUS, CHARITABLE
AND CERTAIN OTHER ORGANISATIONS, ARE ELIGIBLE TO RECEIVE
ASSISTANCE FOR THE CAPITAL AND OPERATING COSTS ASSOCIATED
WITH THE PROVISION OF CERTAIN KINDS OF ACCOMMODATION FOR
THE AGED.
GRANTS ON A $ 2 FOR $ 1 BASIS UP TO CERTAIN MAXIMUM LIMITS MAY
'-BE MADE TO MEET THE COST OF ERECTION, EXTENSION OR PURCHASE
OF THE ACCOMMODATION. THE MAXIMUM SUBSIDIES ARE REVIEWED
PERIODICALLY, AND FOR APPROVED PROJECTS COMMENCING AFTER
1 JULY 1982 THE SUBSIDY LIMITS HAVE BEEN INCREASED FROM
$ 12,100 TO $ 14,000 FOR A SINGLE UNIT AND FROM $ 14,035 TO
$ 16,240 FOR A DOUBLE UNIT OF ACCOMMODATION, WHILE A MAXIMUM
) OF $ 1,920 A UNIT IS PROVIDED FOR LAND.
IN 1969 THE ACT WAS AME1NDED TO PROVIDE FOR THE PAYMENT OF
PERSONAL CARE SUBSIDIES IN RESPECT OF PERSONS AGED EIGHTY
YEARS AND OVER RESIDENT IN HOSTEL ACCOMMODATION AND
RECEIVING PERSONAL CARE SERVICES PROVIDED BY AN APPROVED
ORGANISATION. IN 1973 THE SUBSIDY WAS EXTENDED TO HOSTEL
RESIDENTS AGED LESS THAN EIGHTY YEARS WHO REQUIRE, AND ARE
RECEIVING, APPROVED PERSONAL CARE. THE SUBSIDY HAS BEEN
INCREASED FROM $ 20 TO $ 30 PER PERSON A WEEK FROM JULY 1982.
PAYMENTS TO LOCAL GOVERNMENT UNDER THIS PROGRAM IN 1982/ 83 ARE
ESTIMATED TO BE JUST OVER $ 8 MILLION, DOUBLE THE AMOUNT
PROVIDED IN 1981 / 82.
IN ADDITION, UNDER THE STATES GRANTS ( HOME CARE) ACT OF 1969
THE COMMONWEALTH PREVIOUSLY AGREED TO PROVIDE $ 4 MILLION A
YEAR FOR THREE YEARS FROM 1980/ 81 FOR CENTRES, RECOMMENDED
BY STATE GOVERNMENTS, WHICH PROVIDE WELFARE SERVICES
MAINLY FOR ELDERLY PEOPLE.
THIS IS OF PARTICULAR INTEREST HERE IN ALICE SPRINGS, AS
[-MY COLLEAGUE SENATOR KILGARIFF OPENED THE ALICE SPRINGS
SENIOR CITIZENS CENTRE IN WELLS STREET JUST LAST WEEK. IT
IS A VERY GOOD EXAMPLE OF WHAT CAN BE ACHIEVED THROUGH
CO-OPERATION BETWEEN VARIOUS LEVELS OF GOVERNMENT AND
DIFFERENT SECTIONS OF THE COMMUNITY. THE COMMONWEALTH
GOVERNMENT AND THE ALICE SPRINGS TOWN COUNCIL HAVE
CONTRIBUTED A TOTAL OF $ 90,000 TOWARDS THE COST OF THE
RENOVATION OF PREMISES, PROVIDED BY THE TERRITORY
GOVERNMENT FOR THE ALICE SPRINGS SENIOR CITIZENS'
ASSOCIATION. CHILDREN'S SERVICES
UNDER THE CHILDREN'S SERVICES PROGRAM GRANTS ARE MADE DIRECT
TO LOCAL GOVERNMENT AUTHORITIES AND COMMUNITY ORGANISATIONS
TOWARDS THE COST OF THE ESTABLISHMENT AND OPERATION OF A
RANGE OF CARE AND ASSOCIATED SERVICES FOR CHILDREN, INCLUDING
EDUCATIONAL SERVICES FOR YOUNG CHILDREN.
IN 1981-82 GRANTS PAID DIRECT TO LOCAL GOVERNMENT AUTHORITIES
UNDER THE CHILDREN'S SERVICES PORGRAM TOTALLED $ 11 .5 MILLION,
PAYMENTS IN 1982-83 ARE ESTIMATED TO BE $ 19.5 MILLION.
DROUGHT RELIEF
MUCH OF THE COUNTRY IS IN THE GRIP OF ONE OF THE WORST
DROUGHTS ANY OF US CAN REMEMBER. WITH EXPECTATIONS OF THE
WHEAT CROP BEING HALF THE LEVEL OF LAST YEAR'S AND GRAZIERS
HAVING DIFFICULTY MAINTAINING HERD AND FLOCK SIZES COUPLED
t-WITH UNFAVOU'RABLE MARKET CONDITIONS OVERSEAS THE
IMPLICATIONS FOR THE ECONOMY AT NATIONAL, STATE AND REGIONAL
LEVELS ARE OBVIOUS. A DISASTER OF THIS MAGNITUDE CREATES
PARTICULAR PROBLEMS FOR GOVERNMENTS AT ALL LEVELS AND EACH
HAS TO PLAY ITS PART IN RESPONDING TO THE SOCIAL AND ECONOMIC
CHALLENGE ISSUED BY AN ADVERSE ENVIRONMENT.
THE GOVERNMENT HAS RESPONDED SWIFTLY AND POSITIVELY TO
THE SERIOUSNESS OF THE CURRENT DROUGHT BY INTRODUCING
TWO SUBSTANTIAL RELIEF MEASURES NOT PREVIOUSLY AVAILABLE,
THE FODDER AND INTEREST PAYMENT SUBSIDIES. THESE MEASURES,
ESTIMATED TO COST MORE THAN $ 350 MILLION, ARE BEING WHOLLY
FUNDED BY THE COMMONWEALTH. THESE INITIATIVES DEMONSTRATE
YET AGAIN THAT THE COMMONWEALTH IS PREPARED TO GO BEYOND
THE CON4STRAINTS OF ESTABLISHED FUNDING ARRANGEMENTS IN
RESPONSE TO NATURAL DISASTERS WHEN THE CIRCUMSTANCES ARE
16
SO SEVERE AS TO WARRANT SUCH ACTION.
IN ADDITION, THE COMMONWEALTH GOVERNMENT HAS TAKEN THE
LEAD IN ENCOURAGING THE STATES TO EXTEND THE RANGE OF RELIEF
MEASURES ELIGIBLE FOR COMMONWEALTH ASSISTANCE UNDER THE
ESTABLISHED NATURAL DISASTER RELIEF ARRANGEMENTS. THE
SPECIFIC MEASURES VARY FROM STATE TO STATE AND CARRY-ON
LOANS, FREIGHT SUBSIDIES FOR TRANSPORT OF STOCK, FODDER
AND WATER, AND SLAUGHTER SUBSIDIES ARE DIRECTED AT PRIMARY
PRODUCERS AND SMALL BUSINESSES. THERE ARE, HOWEVER, A NUMBER
OF APPROVED NMEASURES IN DIFFERENT STATES WHICH PROVIDE
iDIRECT ASSISTANCE TO SHIRES AND TOWN COUNCILS FOR EMERGENCY
WATER SUPPLIES. WHERE A STATE IMPLEMENTS SUCH MEASURES, THE
COMMONWEALTH FUNDS EXPENDITURE IN A FINANCIAL YEAR ABOVE THE
STATE'S BASE AMOUNT ON A $ 3 COMM1ONWEALTH TO $ 1 SIATEI BASIS.
A NUMBER OF APPROACHES HAVE BEEN MADE TO THE COMMONWEALTH
BY SHIRES AND TOWN COUNCILS SEEKING FUNDS FOR SHORT-TERM
JOB CREATION SCHEMES FOR THE DURATION OF THE DROUGHT.
THE OVERALL AIM OF THE COMMONWEALTH'S APPROACH TO DROUGHT
RELIEF, BOTH WITHIN THE NATURAL DISASTER RELIEF ARRANGEMENTS
AND IN THE SPECIAL MEASURES INTRODUCED FOR THE DURATION OF
THIS DROUGHT, IS TO HELP TO MAINTAIN THE VIABILITY OF
DROUGHT-AFFECTED PRIMARY PRODUCERS AND SMALL BUSINESS SO
THAT THEY CAN OPERATE AS NEAR TO NORMALLY AS POSSIBLE AND
MEET NORMAL OPERATING EXPENSES SUCH AS RATES, EMPLOYEES'
I
17
WAGES ETC. THIS HAS FLOW-ON EFFECTS FOR OTHER SECTORS OF
THE LOCAL EOCNOMY HELPING TO MAINTAIN ACTIVITY AND.
EMPLOYMENT. THIS APPROACH HAS BEEN SUCCESSFUL IN THE PAST
AND IS MORE LIKELY TO MAINTAIN PERMANENT EMPLOYMENT IN
RURAL AREAS THAN SHORT TERM JOB CREATION SCHEMES. IN THIS
REGARD THE COMMONWEALTH IS DISAPPOINTED THAT ONE STATE,
NEW SOUTH WALES, HAS NOT SEEN FIT TO IMPLEMENT THE COMMONWEALTH'S
PROPOSAL THAT CARRY-ON LOANS BE EXTENDED TO SMALL BUSINESSES.
D THIS PROPOSAL WAS FORMULATED HAVING IN MIND THE PARTICULAR
PROBLEMS OF SMALL BUSINESSES IN DROUGHT-AFFECTED RURAL TOWNS,
AND I UNDERSTAND THAT ALL OTHER STATES HAVE AGREED TO IT.
ACIR I SHOULD NOW LIKE TO TURN TO A VERY IMPORTANT ASPECT OF THE
DEVELOPMENT OF RELATIONS BETWEEN THE THREE SPHERIES OF
GOVERNMENT IN AUSTRALIA. APART FROM INSTITUTING THE TAX
SHARING ARRANGEMENTS WITH STATE AND LOCAL GOVERNMENT THE
COMMONWEALTH ACTED SHORTLY AFTER ITS ELECTION IN
DECEMBER 1975 TO ESTABLISH A BODY, WITH REPRESENTATIVES
FROM THE COMMONWEALTH, STATE AND LOCAL SPHEI--S AND FROM THE
GENERAL COMMUNITY, WHICH COULD EXAMINE IN AN OBJECTIVE AND
ANALYTICAL WAY, THE ROLES AND RELATIONSHIPS BETWEEN THE
THREE SPHERES OF GOVERNMENT. THE CREATION OF THE ADVISORY
COUNCIL FOR INTER-GOVERNMENT RELATIONS REPRESENTS ONE OF
THE MOST SIGNIFICANT INITIATIVES IN THIS AREA SINCE FEDERATION.
BY MEANS OF ITS REPORTS, DISCUSSION PAPERS AND INFORMATION
18
PAPERS AND THROUGH THE OPPORTUNITIES IT PROVIDES FOR
POSITIVE INTERACTION BETWEEN GOVERNMENTS, IT HAS ALREADY
HAD A CONSIDERABLE INFLUENCE ON THE WAY WE VIEW OUR OWN
AND EACH OTHERS' RESPECTIVE ROLES IN THE GOVERNMENT OF THE
NATION. THE COMMONWEALTH WAS PLEASED WITH THE AGREEMENT OF STATE
GOVERNMENTS AND YOUR ASSOCIATION TO WELCOME OUR HOST
TERRITORY AS A FULL MEMBER OF ACIR.-WE ALL LOOK FORWARD
TO THE SPECIAL CONTRIBUTION WHICH THE TERRITORY'S
REPRESENTATI* VES CAN MAKE, GIVEN THEIR SPECIAL VIEWPOINT
rAS A GOVERNMENT IN TRANSITION TO STATEHOOD AND AS AN AREA
WHERE LOCAL GOVERNMENT IS AT AN EARLY STAGE OF DEVELOPMENT.
FINALLY, IT IS CLEAR THAT, DESPITE THE DIFFICULT
CIRCUMSTANCES WHICH WE ALL FACE, THE COMMONWEALTH HAS MADE
AND IS CONTINUING TO MAKE A SIGNIFICANT COMMITMENT TO SUPPORT
LOCAL GOVERNMENT AS A SEPARATE BUT INTEGRAL PART OF THE
AUSTRALIAN SYSTEM OF GOVERNMENT AND ADMINISTRATION. I
THANK YOU FOR THE OPPORTUNITY TO ADDRESS THIS IMPORTANT
CONFERENCE WHICH HAS A NUMBER OF WEIGHTY MATTERS TO CONSIDER
IN THE THREE DAYS OF ITS DURATION.
4 ZOI v