ADDRESS BY THE PRIME MINISTER TO THE
1983 ANNUAL CONFERENCE OF THE
VICTORIAN FARMERS AND GRAZIERS ASSOCIATION
28 JUNE 1983, DALLAS BROOKS HALL, EAST MELBOURNE
OPEN THE
GRAZIERS I AM DELIGHTED TO BE WITH YOU TODAY TO OFFICIALLY
1983 ANNUAL CONFERENCE OF THE VICTORIAN FARMERS AND
ASSOC.! ATION.
THE GATHERING HERE TODAY IS CLEAR TESTIMONY TO THE
BENEFITS OF HAVING A SINGLE BODY REPRESENTING VICTORIAN
PRIMARY PRODUCERSTHE VICTORIAN FARMERS AND GRAZIERS ASSOCIATION IS,
OF COURSE, A MEMBER OF THE NATIONAL FARMERS' FEDERATION.
LAST MONTH IN CANBERRA I HAD THE HONOUR OF OPENING
THE FEDERATION'S ANNUAL CONFERENCE.
IN MY REMARKS THEN I DREW ATTENTION TO THE GREAT
SUCCESS OF THE AMALGAMATION OF BODIES REPRESENTING PRIMARY
PRODUCERSY
THE POSITIVE ROLE PLAYED BY THE NATIONAL FARMERS'
FEDERATION SINCE ITS FORMATION IN 1979 1S PERHAPS THE MOST
OBVIOUS CASE IN POINT. IPARTICULARLY APPRECIATED THE
VALUABLE CONTRIBUTION OF THE FEDERATION TO THE RECENT
NATIONAL ECONOMIC SUMMIT CONFERENCE.
BUT WE SHOULD ALSO GIVE FULL CREDIT TO THE
CONSTRUCTIVE WORK OF YOUR OWN ASSOCIATION. THE VFGA WAS
FORMED IN THE SAME YEAR AS THE NATIONAL FARMERS' FEDERATION
1979 AND FOR THE SAME REASON TO ENABLE PRIMARY
PRODUCERS TO SPEAK WITH ONE VOICESINCE
1979 THE PROPONENTS OF UNITY AND OF
CO-OPERATION BETWEEN FARMING ORGANISATIONS CAN BE WELL
SATISFIED WITH THE RESULTS OF THEIR WORK. THEY HAVE BEEN
VINDICATEDI COME STRAIGHT TO THE CRUX OF WHAT I WISH TO SAY
TO YOUTHAT CONCERNS THE RELATIONSHIP BETWEEN THE FEDERAL
GOVERNMENT AND PRIMARY PRODUCERS AND THEIR REPRESENTATIVE
ORGAN ISAT IONS*
WE NEED A RELATIONSHIP BASED ON TRUST, BASED ON
RESPECT AND, ABOVE ALL., A RELATIONSHIP THAT WORKS-
* L rVf" S I.
BUT WE CAN ONLY WORK TOGETHER IF THERE'S A
RECOGNITION ON BOTH SIDES OF THE FUNDAMENTAL IMPORTANCE OF
THE RELATIONSHIP AND A BASIC COMMITMENT TO MAKE IT WORK.
SO I SAY THIS TO YOU SIMPLY AND WITHOUT ANY QUALMAND
PARTICULARLY TO REPUDIATE ANY MISAPPREHENSION THAT MIGHT
INADVERTENTLY HAVE BEEN CREATEDWE
ARE DETERMINED TO WORK WITH YOU AND FOR YOUWE
REGARD OUR RELATIONSHIP WITH YOU AS OF PARAMOUNT
IMPORTANCE AND ARE DETERMINED TO MAKE IT WORKTHE
CONTRIBUTION OF THE RURAL SECTOR IS NOT MERELY
INTEGRAL TO OUR SURVIVAL AS A TRADING NATION.
IT IS VITAL IF WE ARE TO MAKE ANY SORT OF FIST OF
AN ECONOMIC RECOVERYIN DEVELOPING OUR RELATIONS WITH YOU, my GOVERNMENT
IS EXTREMELY FORTUNATE IN HAVING AS MINISTER FOR PRIMARY
INDUSTRY A PERSON OF THE ABILITY AND CONVICTION OF JOHN
KER IN. HE IS QUICKLY ESTABLISHING HIMSELF AS THE MOST
EFFECTIVE MINISTER FOR PRIMARY INDUSTRY SINCE THE SECOND
WORLD WARV.-
AND JUST AS IMPORTANT FOR FARMERS, MY ECONOMIC
MINISTERS HAVE ALREADY ESTABLISHED THEIR CREDIBILITY IN THE
STRUGGLE TO RESTORE AUSTRALIA'S INTERNATIONAL
COMPETITIVENESS AND TO PUT AUSTRALIA ON THE PATH TO
NON-INFLATIONARY GROWTHMy
GOVERNMENT CAME TO OFFICE WITH A PLEDGE TO
FIGHT UNEMPLOYMENT AND INFLATION AT THE SAME TIME. WE SAID
THAT WE WOULD PURSUE EXPANSIONARY POLICIES, TO GET THE
ECONOMY MOVING AGAIN AND TO CREATE JOBS AND WE SAID THAT WE
WOULD DO THIS WHILE WINDING DOWN INFLATION AND ESTABLISHING
A LESS DISRUPTIVE INDUSTRIAL RELATIONS ENVIRONMENTAND
THAT IS WHAT WE ARE DOINGOVER
THE PAST FEW MONTHS I HAVE USED A NUMBER OF
MEETINGS SUCH AS THIS TO REMIND AUSTRALIANS THAT THERE ARE
REAL LIMITS TO THE DEGREE OF ECONOMIC STIMULUS THAT CAN BE
ACCOMMODATED WITHOUT JEOPARDISING THE BASIC OBJECTIVES THESE
POLICIES ARE SUPPOSED TO ACHIEVEI
NEED HARDLY TELL YOU OF THE OVERRIDING NEED
TO GET INTEREST RATES DOWN
TO GET INFLATION DOWN
TO CONTAIN WAGE AND OTHER COST INCREASES
TO IMPROVE THE INTERNATIONAL COMPETITIVENESS OF OUR
PRODUCTS AND
TO EXPAND OUR MARKETS , Th4; r
INEED HARDLY TELL YOU THAT ONE SURE WAY NOT TO
ACHIEVE ANY OF THESE OBJECTIVES IS TO TREAT THE FEDERAL
BUDGET AS THOUGH IT CAN BE EXPANDED WITHOUT LIMITWE
OWE IT To AUSTRALIANS WITHOUT JOBS, AS WELL AS
TO FARMERS AND OTHERS WHO MUST COMPETE ON WORLD MARKETS
WHILE PAYING AUSTRALIAN PRICES FOR THE GOODS AND RESOURCES
THEY NEED, TO KEEP THE BUDGET DEFICIT WITHIN THE BOUNDS OF
RESPONSIBILITY. WE HAVE INDICATED THAT WE HAVE BEEN PREPARED TO
CONSIDER A DEFICIT UP TO ABOUT $ 8.5 BILLION IN 1983-84.
WE BELIEVE THAT EXPANSIONARY FISCAL POLICY ALONG
THESE LINES CAN BE CONTEMPLATED WITHOUT DISASTROUS
CONSEQUENCES IN FINANCIAL MARKETS WHILE PRIVATE INVESTMENT
REMAINS AS LOW AS IT is. BUT STRONG AND DURABLE RECOVERY
WILL REQUIRE THE RESTORATION OF HIGH LEVELS OF PRIVATE
INVESTMENT. THAT GROWTH WILL BE DIFFICULT TO ACHIEVE IF
THERE ARE FURTHER INCREASES IN REAL INTEREST RATES. AND
THESE MUST OCCUR IF BUDGET DEFICITS REMAIN AT PRESENT LEVELS
AS PRIVATE INVESTMENT STRENGTHENS IN RECOVERY. THUS WE
BELIEVE THAT SUBSTANTIAL FISCAL STIMULUS IN THE NEAR FUTURE
MUST BE ACCOMPANIED BY MEASURES TO HAUL IN THE STRUCTURAL
BUDGET DEFICIT, AS RECOVERY PROCEEDS IN THE YEARS AHEAD-
OUR MAY ECONOMIC STATEMENT MADE A VERY IMPORTANT
FIRST STEP TO BRINGIN-G OUR FISCAL POLICY BACK ALONG A
RESPONSIBLE COURSE, A PROCESS THAT WILL BE CONTINUED IN THE
AUGUST BUDGET. IN FRAMING THAT BUDGET WE WILL NEED TO ALLOW FOR
THE MORE OPTIMISTIC INTERNATIONAL OUTLOOK THAT IS NOW
DEVELOPINGA SUSTAINED U. S. RECOVERY, PARTICULARLY IF IT IS
REINFORCED BY THE PICK UP IN ACTIVITY NOW EXPECTED IN A
NUMBER OF OTHER INDUSTRIAL COUNTRIES, SHOULD PROVIDE SOME
ADDITIONAL L-ECT STIMULUS TO THE AUSTRALIAN ECONOMY,
PRINCIPALLY BY WAY OF STRONGER DEMAND FOR OUR EXPORTS AND
REDUCED EXTERNAL PRESSURE ON OUR IMPORT COMPETING SECTORSIN
THE COURSE OF 1983-84, THIS EXTERNAL STIMULUS
CAN BE EXPECTED TO CONTRIBUTE TO THE INCREASE IN ECONOMIC
ACTIVITY AND EMPLOYMENT THAT WILL BE ASSOCIATED WITH OUR
EXPANSIONARY FISCAL POLICIES, THE ENDING OF THE DROUGHT AND
THE IMPROVEMENT I. N CONSUMER AND BUSINESS CONFIDENCE APPARENT
SINCE THE SUMMIT.
ALL THIS STRENGTHENS THE VIEW IEXPRESSED YESTERDAY
AT THE NATIONAL PRESS CLUB NAMELY THAT THE FINANCIAL YEAR
WHICH BEGINS THIS WEEK WILL MARK A DECISIVE WATERSHED
BETWEEN PAST YEARS OF STAGNATION AND FUTURE YEARS OF GROWTH
IN THE AUSTRALIAN ECONOMY-
OUR WHOLE ECONOMIC STRATEGY DEPENDS ON OUR BEING
ABLE TO IMPROVE AUSTRALIA'S INTERNATIONAL COMPETITIVENESS
AND TO CONTAIN THE ADVERSE EFFECT OF WAGE INCREASES AND
INFLATION ON OUR ABILITY TO COMPETETHE
FACT IS: THERE CAN BE NO LONG-TERM RECOVERY
UNLESS WE MAINTAIN OUR INTERNATIONAL COMPETITIVENESSMy
GOVERNMENT IS COMMITTED TO ACHIEVING A DEGREE OF
WAGE RESTRAINT CONSISTENT WITH THAT OBJECTIVEWE
HAVE INDICATED THAT WE DO NOT BELIEVE THE
ECONOMY CAN ACCOMMODATE A RISE IN WAGES IN 1983 BEYOND THE
ORDER OF 3 OR 14 PER CENTSIGNIFICANTLY THIS IS A LOWER INCREASE THAN WAS
EXPECTED BY THE GOVERNMENT'S OFFICIAL ADVISERS UNDER THE
PREVIOUS GOVERNMENT'S WAGES POLICY. IT IS, OF COURSE, FAR
LOWER THAN AUSTRALIA HAS HAD AT ANY TIME IN THE PAST DECADETHE
GROWTH IN AVERAGE WEEKLY EARNINGS IN CALENDAR
YEAR 1982 WAS RUNNING ABOVE 114% BUT BY THE BEGINNING OF NEXT
YEAR WE EXPECT TO GET IT DOWN TO AROUND 6%.
SUCH WAGE MODERATION WILL CONTRIBUTE TO THE LOWER
INFLATION WE EXPECT OVER THE COURSE OF THIS YEAR-4.
WE INHERITED AN INFLATION RATE OF 11.5 PER CENT AS
WE WENT INTO GOVERNMENT, BUT GOING INTO 1984 WE EXPECT
INFLATION TO BE DOWN TO THE ORDER OF 6 PER CENTTHIS
WILL HELP IMPROVE OUR INTERNATIONAL
COMPETITIVENESS AND REINFORCE THE FAVOURABLE IMPACT THAT
RESULTED FROM THE GOVERNMENT'S DEVALUATION IN MARCHEXCHANGE
RATE POLICY IS, OR COURSE, ALONGSIDE WAGES
POLICY, AN ESSENTIAL DETERMINANT OF OUR INTERNATIONAL
COMPETITIVENESS-OUR POLICY OF FIGHTING INFLATION AND
UNEMPLOYMENT AT THE SAME TIME MEAN THAT WE ARE ADOPTING A
MORE BALANCED AKP ROACH TO EXCHANGE RATE POLICY THAN OUR
PREDECESSORS, WHOSE POLICIES OF FIGHTING INFLATION FIRST
SOMETIMES LED TO THE EXCHANGE RATE BEING HELD ARTIFICIALLY
H IGH. WITHIN THAT FRAMEWORK, LET ME NOW TAKE UP SOME OF
THE SPECIFIC GOVERNMENT DECISIONS I KNOW HAVE CREATED SOME
CONCERN IN THE RURAL COMMUNITY.
ITURN FIRST TO THAT WHICH HAS CREATED PERHAPS MOST
CONCERN THE GOVERNMENT'S DECISION TO SHORTLY END THE TWO
COMMONWEALTH7FUNDED DROUGHT RELIEF SCHEMES THAT HAVE
OPERATED SINCE LAST SEPTEMBER FROM 30 SEPTEMBER IN THE
CASE OF THE INTEREST SUBSIDY SCHEME AND FROM 30 JUNE IN THE
CASE OF THE FODDER SUBSIDY SCHEME.
I HAVE TAKEN NOTE OF YOUR CRITICISM AND WOULD LIKE
YOU TO KEEP IN MIND THAT THERE ARE CONTINUING ARRANGEMENTS
TO ASSIST FARMERS IN DIFFICULT FINANCIAL CIRCUMSTANCES
REC(. A( I. รต . F nF NAT. UR/ 4,
IT IS APPROPRIATE TO REPEAT WHAT I TOLD THE
PARLIAMENT ON 3 MAY IN RESPONSE TO A QUESTION FROM THE
LEADER OF THE NATIONAL PARTY:
" THE MINISTER FOR PRIMARY INDUSTRY IS PREPARING A
REVIEW OF DROUGHT RELIEF MEASURES FOR EARLY
CONSIDERATION BY THE GOVERNMENT. AS THE SITUATION
IMPROVES, WE ANTICIPATE AN INCREASING REQUIREMENT
FOR CARRY-ON FINANCE UNDER THE N. D. R. A. SCHEME FOR
RESTOCKING AND RESTORATION PURPOSES"'
FARMERS IN DROUGHT-DECLARED AREAS WILL CONTINUE TO
HAVE ACCESS TO CARRY-ON LOANS UNDER THE N. D. R. A. OF UI TO
$ 40,000 AT INTEREST RATES NO HIGHER THAN 14 PER CENT. GIVEN
THE MARKED IMPROVEMENT IN SEASONAL CONDITIONS, AND THE
CONTINUED ACCESS TO THE NATIONAL DISASTER RELIEF
ARRANGEMENTS, IT SEEMED TO MY GOVERNMENT TO BE APPROPRIATE
TO TERMINATE THE FODDER AND INTEREST SCHEMES-MOREOVER, THE
GOVERNMENT RECENTLY NEARLY DOUBLED THE ALLOCATION MADE LAST
YEAR FOR RURAL ADJUSTMENTTHE
PREVIOUS GOVERNMENT IN INTRODUCING THE FODDER
AND INTEREST SUBSIDIES MADE IT PERFECTLY CLEAR THAT THEY
SHOULD BE REGARDED AS A ONE-OFF EXERCISE DIRECTLY ARISING
OUT OF THE GENERAL DROUGHT THROUGH ALL OF EASTERN AND
SOUTHEASTERN AUSTRALIA. THESE SPECIAL CIRCUMSTANCES MEANT
THAT NORMAL AGISTMENT ARRANGEMENTS WERE NOT AVAILABLE TO
FARMERS AFFECTED BY DROUGHT. CLEARLY THIS SITUATION NO
LONGER EXISTS-
HOWEVER, IN VIEW OF VARIOUS STATEMENTS AND
REPRESENTATIONS THAT HAVE BEEN MADE, THE GOVERNMENT IS
PREPARED TO CONSIDER ANY SPECIFIC EVIDENCE FROM FARMERS
ORGANISATIONS THAT AN EXTENSION OF THE FODDER SUBSIDY BEYOND
JUNE 30 IS ESSENTIALANOTHER AREA WHERE SOME CONCERN HAS BEEN EXPRESSED
IN THE RURAL COMMUNITY IS THE ECONOMIC STATEMENT DELIVERED
TO PARLIAMENT ON MAY 19 BY THE TREASURER, PAUL KEATINGTHIS
STATEMENT, YOU WILL RECALL, PRESENTED THE
RESULTS OF THE GOVERNMENT'S COMPREHENSIVE REVIEW OF EXISTING
GOVERNMENT F'PENDITURE AND TAXATIONTHIS
REVIEW WAS UNDERTAKEN TO DEAL WITH THE
FINANCIAL CRISIS TO WHICH I HAVE REFERREDOF
THE MASS OF DECISIONS IN THE MAY STATEMENT ONLY
FOUR DIRECTLY AFFECTED PRIMARY PRODUCERSTHE
TOTAL SAVINGS FROM THESE FOUR MEASURES WERE $ 54
MILLION IN THE COMING FINANCIAL YEARTHIS
WAS, HOWEVER, ONLY A SMALL PROPORTION ( IN
FACT, LESS THAN 6 PER CENT) OF THE AGGREGATE SAVINGS
ACHIEVED FROM THE EXERCISE.
THOSE SAVINGS TOTALLED $ 985 MILLION-
SO THERE WERE SAVINGS OF $ 541 MILLION FROM MEASURES
AFFECTING PRIMARY PRODUCERS COMPARED WITH SAVINGS OF ALMOST
$ BILLION OVERALLCLEARLY THERE CAN BE NO REASONABLE SUGGESTION THAT
THE RURAL COMMUNITY WAS ASKED TO CARRY A DISPROPORTIONATE
SHARE OF THE BURDEN OF RESTRAINTANOTHER
AREA OF SOME CONCERN IS TARIFF POLICYTHE
FEDERAL GOVERNMENT ACKNOWLEDGES THE LEGITIMATE
CONCERN OF THE RURAL SECTOR ABOUT THE EFFECT OF AUSTRALIA'S
TRADE POLICIESPROTECTION FOR AUSTRALIA'S MANUFACTURING INDUSTRY
IMPOSES VERY REAL COSTS ON AUSTRALIAN FARMERSTHE
GOVERNMENT HAS UNDERTAKEN NOT TO INTRODUCE
PROTECTION REDUCTIONS IN THE PERIOD IMMEDIATELY AHEAD
BECAUSE OF THE CURRENT UNEMPLOYMENT SITUATIONNEVERTHELESS,
WE NEED, AS A NATION, TO BE LOOKING
TO THE LONGER TERM, TO A SITUATION WHERE WE DO INTRODUCE
GRADUAL REDUCTIONS IN PROTECTION AND BEGIN TO EASE THE
SEVERE BURDEN THAT PROTECTION IMPOSES ON THE RURAL SECTOR
AND OTHERS IN OUR COMMUNITY-
12.
THERE SHOULD BE NO DOUBT IN ANYBODY'S MIND ABOUT MY
GOVERNMENT'S COMMITMENT TO TRADE LIBERALISATION AS THE
ECONOMY STRENGTHENS IN THE YEARS AHEADMy
GOVERNMENT HAS A STRONG COMMITMENT TO PRIMARY
INDUSTRYIN OUR SHORT PERIOD IN GOVERNMENT WE HAVE ALREADY
ACTED IN A WIDE RANGE OF FIEL'DS.
CONSIDERABLE PROGRESS HAS BEEN MADE TOWARD THE
ESTABLISHMENT OF A SINGLE NATIONAL MEAT INSPECTION SERVICETHE
MEAT AND LIVESTOCK INDUSTRIES ARE CONSIDERING
THE GOVERNMENT'S PROPOSAL FOR REORGANISING THE AUSTRALIAN
MEAT AND LIVESTOCK CORPORATION-.
WE RECENTLY ANNOUNCED A FIVE YEAR STABILISATION
PLAN FOR THE TOBACCO INDUSTRY-.
THREE WEEKS AGO JOHN KERIN ANNOUNCED THAT THE RURAL
ADJUSTMENT SCHEME, AN ONGOING PROGRAM TO HELP FARMERS ADJUST
TO CHANGING ECONOMIC CIRCUMSTANCES, WILL RECEIVE $ 35 MILLION
IN THE COMING FINANCIAL YEAR.
As I MENTIONED EARLIER, THIS ALMOST DOUBLES THE
CURRENT YEAR'Is $ 18.4 MILLION ALLOCATION-IT STRONGLY
CONTRASTS WITH THE APPROACH OF THE PREVIOUS GOVERNMENT WHICH
CUT RURAL ADJUSTMENT SCHEME FUNDS BY TWO THIRDS IN 1979.
QUITE SEPARATE FROM THIS DOUBLING OF FUNDING, WE
INJECTED $ 11 MILLION INTO THE RURAL ADJUSTMENT SCHEME FOR
CARRY-ON LOANS FOR THE SUGAR INDUSTRYLET
ME COME BACK TO THE FUNDAMENTAL POINT I WAS
MAKING EARLIER THE NEED FOR THE FEDERAL GOVERNMENT AND THE
RURAL SECTOR TO WORK EFFECTIVELY TOGETHER.
WE AS A GOVERNMENT RECOGNIZE THAT AUSTRALIAN
PRIMARY INDUSTRY IN TERMS OF ITS EFFICIENCY IS SECOND TO
NONE IN THE WORLD.
IWAS REMINDED OF THIS ALMOST BY ACCIDENT EARLIER
THIS MONTH WHEN I WAS IN INDONESIAWHILE
THERE, I VISITED A PLACE CALLED CIAWI, NEAR
JAKARTA, WHERE A MAJOR AID PROJECT FOR ANIMAL RESEARCH AND
DEVELOPMENT IS IN OPERATIONTHE
WHOLE PROJECT WAS EXTREMELY IMPRESSIVE.
BUT THE RELEVANT POINT HERE IS THAT THE FARM
TECHNOLOGY BEING APPLIED THE BEST IN THE WORLD WAS
AUSTRALIAN FARM TECHNOLOGY-
THIS SMALL POINT UNDERLINES FOR ME SOMETHING OF
TREMENDOUS IMPORTANCETHIS IS THE EXTRAORDINARY POTENTIAL OF AUSTRALIAN
PRIMARY INDUSTRY NOT JUST IN TERMS OF A CONTRIBUTION TO
DOMESTIC ECONOMIC RECOVERY BUT IN TERMS OF MAKING A REAL
IMPACT ON THE INTERNATIONAL ECONOMIC SCENEBUT
TO REALIZE THAT POTENTIAL, THE NATIONAL
GOVERNMENT MUST GIVE AN OPEN AND FULL COMMITMENT TO OUR
GREAT PRIMARY INDUSTRIES.
IGIVE YOU THAT COMMITMENT NOW--
WE, AS A GOVERNMENT, AND YOU, AS A VITAL PART OF
OUR COMMUNITY, MUST WORK TOGETHERAND
IN DOING SO, I CAN THINK OF NO BETTER STARTING
POINT THAN THE NEW LOGO YOUR ASSOCIATION HAS ADOPTED AS A
MOTTO " ACHIEVEMENT THROUGH UNITY".
WE WILL NOT ACHIEVE ANYTHING AS A NATION IF WE ARE
DIVIDED AMONG OURSELVES:
IF WE CREATE ARTIFICIAL DIFFERENCES BETWEEN CITY
AND COUNTRY
IF WE REFUSE TO RESPECT EACH OTHER OR TO LISTEN TO
EACH OTHER
IF WE DWELL ON PAST DIFFEREN* CES AND NOT LOOK TO THE
F UT U RE
THE ONLY BASIS FOR GENUINE ACHIEVEMENT AS A NATION
IS FOR US TO FORGET OUR DIFFERENCES AND TO UNITE AS
AUSTRALIANS. I WISH ALL OF YOU EVERY SUCCESS IN YOUR EFFORTS FOR
" ACHIEVEMENT THROUGH UNITY".
I SIMPLY ASK THAT YOU WORK WITH US, AS THE NATIONAL
GOVERNMENT, IN THAT VERY SAME ENDEAVOUR WE SEEK FOR
AUSTRALIA -ACHIEVEMENT THROUGH UNITY.
IDECLARE THIS CONFERENCE OPEN-