PRESS CONFERENCE GIVEN BY THE ACTING PRIME MINISTER, HON.
J. McEWEN, AT CANBERRA ON THURSDAY, 7TH MAY, 1959, AT
11.30 A. M.
QUESTION:
MR. McEWEN:
QUESTION:
MR. McEWEN:
QUESTION:
MR. McEWEN: There are reports that Australia will be called on
to further reduce its production of lead and zinc,
which arises from the current New York meeting to
the extent of 23,000 tons. Have you any information
or any comment?
Well, I have some information, I think the story
flows from falling lead-zinc prices, dating back
more than a year, followeby the A-oricar anxiety
the local anxiety of their own inducty that,
about a year ago, we were proposing from here, after
consultation with the Australian industry, tha-; there
should be a study, at the international level, of the
relevant facts, which would have the dua. objectivos
of seeing whether anything could be done to
stabilize markets and give us a basis on which we
should argue with the United States that they ought
not to take any unilateral action, That is more than
a year ago. Sir Edwin McCarthy, at his end. tool cn
instructions, an ititiative in convening inuernational
meetings, and this has evolved with nhe
Montreal Conference decisions intervening, v-hich
gave a general lead in the approach to iworld c-mmuodj. r,
prices. This had led to a succession of conferonces
between governments and their industri. c. internationally
between the industries without benefit of
government; and a succession of meetings under the
auspices of the United Nations, All thi: has
culminated in the meeting which is now curre-t and
may be, in fact, practically finished, in kew Yo
in which governments under the aispices of the United
Nations but all equipped with the dvice of their
own industry people have been considering what
might be done to stabilize world markets nd prices
for lead and zinc. I think the critical a. ppoch
was a question of whether it was practical. and
desirable to attempt to reasonably equate the
quantities of these metals coming on to world
markets with the consumptive demand, T t . iin-i-may
expect perhaps today some announcements to emerge
from the meeting. I know there have been rumoars,
but there are no official decisions yet tnat h'rav,
been communicated to me,
Do you think you might be happy about the. in formn'atio-n
that is coming?
I think so, because the whole procedure ha b adc
work-out of what I was propounding for our
Government at Montreal that there shculcu bt a
commodity by commodity study of the facto.; s :; hich
may contribute to stabilisation of c rmmnodity
prices. This has been an actual work-out of thai
approach.
Mr. McEwen, Isn't this rather a suggestion
cut production in any country, but ins'eadc, l:-p
a certain amount of lead and zinc off ' e *: arket by
stockpiling in the countries concerned?
Well, I have been carefully choosing ords I
say equate the quantity of lead and z. in coring on
to world markets to the consumptive de. oand, It
would be left to each country possibly to a-h
company to decide whether its lr'iA-but-': ooi; c~ l,
QUESTION:
MR. M cEWEN:
QUESTION:
MR. McEWJEN:
QUESTION;
MR. McEWEN:
QUESTION:
MR. McEWJEN:
QUESTION: MR. McEWEN:
QUESTION: be at the point of production, or at the point of
smelting, or at the point of export to world markets.
Would there be any Government advice to Australian
companies on that point?
There is certainly no Government instruction. There
is a desire by the Government that, to the extent
that our own policies are having a work-out, that
Australia should be capable of speaking with a
single voice. And that has substantially been
achieved. But, actually, this is more a que-Istion for industry
than for Government to take the initiative, I mean?
My own attitude is that the Government ought never
to take an arbitrary position if industry is willing
to make a decisive arrangment itself. And the units
of production in these industries are so few in
number that I have always thought -that it should be
feasible, and I believe in the Australian scene, it
is feasible, for the industries to reach such a
measure of agreement that it avoids the necessity for
Government intervention.
What you say, Sir, seems to suggest that however it
may be achieved, we may be brought to a position
of agreeing to a further reduction in exports at
least? No; I would correct you there. The industries have
done that substantially themsleves over the last
year. Some of the Broken Hill maines announced long
since that some would reduce their working days, and
some reduce their exports. And you have seen
recently the announcement on behalf of Mt. Isa.
And this would probably not affect us any agreement
we have already anticipated?
I think you may take it that it would not further
affect us.
We have had reports that Broken Hill have already
agreed with other producers on a private level to a
1212 per cent. cut in their sales. Does this mean
that if there was an agreement by the United Nations
comamittee that there would be, say, a 10 per cent.
cut in sales? Surely Broken Hill would have to
make a further cut in their sales from their current
level, following such an agreement?
Well the relationship, in my experience which is a
fairly long one between the mining groups, is
that they meet % hese problems without all necessarily
taking the same action at the same time. But they get
a total end re~ sult that is substantially the
equivalent to what it would have been if they had
all. taken the same action at the same time.
Could I just check the precise wording of something
you said earlier, Sir? You said it would be left to
each country or each company to decide at what point
there should be controls whether at maining,
smelting, or export. You said " each country" or
" leach company"?
MR. McE-4EN:
QUESTION:
MR. MoE14EN:
QUESTION:
MR. McEWt-EN:
COMMENT:
MR. McEWEN:
QUESTION:
MR. McEWEN:
QUESTION:
MR. McZWEN:
QUESTION: I said both, and I was trying to get back the
atmosphere in which I was quoting both. To each
country and, perhaps, to each company, so that in
one country it may even be a governmental decision.
In our country in this country I am sure that
whatever is done is going to transpire to be an
industry decision which may not necessarily apply in
both metals an equal formula to every producing unit.
They work out a balance " You do a little more on
lead and we'll do a little more on zinc'. They do
that kind of thing. It works out, well, much better
than a government applying an arbitrary formula.
It has been reported this morning, Mr. McEwen, that
there is something in the nature of a revolt in the
Government parties over the New Guinea taxation
position. I understand that the party met and
considered the matter again this morning. Could you
clear the thing up for us?
Well, I saw the " revolt" in print, but I would say
there has been no revolt. There has been a vigorous
discussion, as I would hope always to have as
evidence of a virile party organisation. 3. further
discussion this morning has been conducted in a
completely amicable atmosphere.
Can you say, Mr. McEwen, whether the Government will
allow debate on the New Guinea issue? If so, when
and how?
The New Guinea question of taxation?
Ye s.
There will certainly be an opportunity for debate
if legislation is passed in the New Guinea
Legislature, because our own statute requires that
such New Guinea legislation is finally tabled in our
Parliament. That produces a procedural opportunity
for debate.
I will put it another way: Will there be an
opportunity to debate it before it is finalised in
the Legislative Council?
I think that there will not be a special opportunity
created; but today is " Grievance Day". The Supply
debate is on the stocks, and there are opportunities
for any members to express themselves.
On another New Guinea question, Mr. McEwen: Is it
a fact that there are proposals before the Government,
which may or may not have reached the Cabinet, for
QANTAS to leave the New Guinea airlines field and for
them to be replaced by Ansett and as a sort
of extension of Australian domestic airline
operations. Well, I think it is publicly known that Mr. Ansett
has expressed his desire to be allowed to get into
the New Guinea traffic. This has not been a matter
of Cabinet discussion. It may well transpire
eventually to be so.
Have you got any person in mind to succeed Mr.
McDonald as T. A. A. Chairman, Sir?
MR. McEWEN: No.
QUESTION:
MR. McEvTEN:
QUESTION:
MR. McE4fEN:
QUEST ION:
MR. McEWEN:
QUESTION:
MR. MC7' WEN:
QUESTION:
MR. McDEEN:
QUESTION: MR. McEdEN:
COMM1ENT:
MR. McEWEN:
QUESTION:
MR. McEWEN:
QUESTION:
MR. iMcDJEN: Is there likely to be an early appointment?
I would think not a very early appointment, for
the reasons that were incorporated in my announcement
of his appointment to the other position.
Mr. McEwen, have you yet received any reports from
Washington on the " Food for Peace" talks or is it
a bit early at this stage?
Well, of course, I have received advice I mean
the cables are buzzing backwards and forwards
because guidance and instruction have to go from
here. I am expecting a final communique in today.
Indeed, it may have just hit my table for all I know.
But I certainly have not sighted the final
comtmunique.
When do you expect a decision to be made, Sir, on
the QA14TAS proposal for a new Sydney hotel?
I cannot put a time upon the thini~ ing that relates
to this. It is evident that the growing volume
of busines of QANTAS particularly with the
additional traffic that is expected to be associated
with the 707' s raises the question of the adequacy
of the Wentworth Hotel for QANTAS's own purposes
there. And that does quite legitimately, raise the
question of whether QJLTAS is to be in a position to
service the additional traffic and service it where?
this is a matter in which exploratory discussions
are proceedin, between QANTAS and the Government at
the present tinie.
Has it reached Cabinet level yet, Mr. McEwen?
Oh yes, it has reached Cabinet level, but not to
a definitive point.
Is there likely to be an early Cabinet decision?
Well, in a matter in which discussions are proceeding,
I frankly can't anticipate how quickly we will
reach a decision.
Is it just a question of discussion, Sir, or are you
seeking further information?
What is the difference?
Quite frequently, a preliminary Cabinet discussion
leads to a decision to get some further facts that
may not initially be before the Cabinet.
Well, I think that is partly the position, but I
think the exploratory discussions and that is the
terin I use will roam over the whole field of
necessity, dimensions, when, where I think that is
the kind of discussion that is proceeding.
Has any protest boon made to the Government against
this hotel going on in the party, for instance?
Well, I have never heard of any protest.
By private parties like Chevron?
No. To the best of my knowledge no.
QUESTION:
MR. McEU EN:
QUESTION:
Mr. McEWEN:
QUESTION: MR. McEWJEN:
QUESTION:
MR. McEWEN:
QUESTION: MR. McEVJEN:
QUESTION:
MR. McEWEN:
QUESTION:
MR. McEiIEN:
QUESTION:
MR. McEWEN:
QUESTION: Senator Paltridge is handling the matter at this
stage, I take it between Cabinet discussions?
Yes, naturally; it is his business.
The Mr. McEwen, is proposing to ask the
Government to introduce legislation to restore
soldier preference legislation which would not be
open to challenge in the court. Have you considered
that matter at all, or received any request?
My understanding and I am without the benefit of
the Attorney-General's advice on this is that
the Court's decision is on a straight constitutional
base that would leave the Government leave the
Parliament without power to legislate to reestablish
preference in ordinary employment. This,
of course, does not touch on my understanding
the constitutional right of the Government in respect
of its own employees. The Government does not
propose to vary its policy in regard to its ovm
employees. The Boyer Report which deals with the
whole matter of public service employment by the
Commonwealth, will be studied on its own merits.
I am not aware as to whether this issue is raised
at all in the Boyer Report. But it will be studied
on its merits. And I understand that the State
Governments have said that they propose to sustain
preference as they have had it up to the present time
in their own employment.
Are you proposing naything outside the public service
level on this matter?
I ami, persinally, not aware of what opportunity
there is outside the Coimmonwealth employees.
Have you had any further information, Sir, on this
so-called new wonder fibre from Italy?
No, I have not.
What is the Government's attitude to Sir Thomas
Playford's request for money for the rail
standardisation I am not equipped to answer that.
Has anything come before Cabinet yet, Sir,
Not in the immediate past.
How far past have you had something to do with it?
Well, I think it is known didn't we announce back
at the time of the election that we would make some
funds available? I think that is the most recent
treatment of the matter by the Government.
Have there been any discussions with Britain on
the launching of satellites from Woomera?
I am not able to answer.
Sir, it has been sugge3sted that a third Minister,
other than Mr. Downer and Mr. Cramer, will be going
abroad shortly. Are you in a position to tell us
who he is and what his purpose would be in going
abroad?
MR. McEWEN:
QUESTION:
MR. McEWEN:
QUESTION:
MR. McEWEN:
QUESTION:
MR. McEWEN:
QUESTION:
MR. McEWEN:
QUESTION:
MR. McEWEN:
QUESTION: MR. McEWEN: No, I am not in a position, but I have seen Senator
Spooneris nar-.-. e mentioned in the papers. All I can
say is that the very nacure of Senator Spooner's
Departrm-ent and its functions is such that there
could arise an occasion for him to go abroad, but
there is nothing in prospect as of the present.
Can you say, Sir, when you think the present sittings
will finish and when the House will resume again?
Well, I expect them to finish probably today week.
I can't say with any precision when the House will
resume the Budg--et session. That will be influenced
by the timing of the conclusion of the Cabinet's
construction of the Budget, I should think.
You have no time-table in mind for the Budget itself?
Not a precise one.
It will be later than last year, I take it, Sir?~
I would think it igcht be a little later, but not
much later.
Have you any date in mind yet for the Loan Council-
Premiers I Conference?
No, we have not a date.
Does i~ t look like being early or late?
It looks to me like being miiedium. ( Laughter.)
Mr. McEwen, there have been reports that there have
been substantial revisions in the balance of
payments estimates for 1958/ 59 and probably for
1959/ 6o, com.. pared with what was sought at the time
of the last Budget; also that the overall cash
deficit that the Government looked to at the time of
the last Budget will almost certainly not be
realised. In view of that more favourable out-turn
in those two basic financial estimates which governed
the bid at the time of the Budget, would that, in
your mind be prim-za facie evidence in favour of more
tax roducLons or a m-. ore liberal approach in the next
Budget, just as a matter of principle?
Well, let me try to deal with the two subjects
separately. The balance of payments to the extent
that the balance of payments has improved through
additional earnings, is gratifying but not very
great. The balance of payment improvement is,
undoubtedly, principally attributable to capital
outflow, which is gratifying but not predictable with
any great confidence or precision. And I would think
that, to the extent that our policies are affected
by the phenomenon it is illustrated in the fact
that with a fall-away in earnings, we have sustained,
for the time-being, the import licensing ceiling
at 800 million. I think we will take it from there
in accordance with our experience of capital inflow
and then in the import licensing period following
the present one, we will have the benefit of the
new wool season. I don't think I can really say more
than that, excopt to repeat that it has been our
constant desire to lessen the sgringency of import
licensing as we felt it was safe to do it. But we
have no intention of applying a short-term approach
and on and off approach to that. That is good for
S
QUESTION:
MR. McEWEN:
QUESTION:
MR. McEWEN:
QUESTION:
MR. McEWEN:
QUESTION:
MR. McE WEN: no one. On the other side, it is undoubtedly true
that the response to Government loan raisings has been
very gratifying. I don't think that the Government
feels that the future in this is completely predictable.
Last year, there is no doubt that the estimate of
the outcome of loan conversions was a contributing
factor to the deficit budgeting. And, by the sane
token, an improvement in the loan situation will be
appropriately taken into account in the Budget
construction, but I would be the last to be guessing
now as to the consequences for taxation.
Sir, recently the New Zealand Minister for Agriculture
conferred with Sir John Collins in Wellington on the
price of Australian butter selling in the U. K. Have
you had any official complaints from New Zealand
about us dumping butter on the U. K. market?
No I have not. I think that would come to me. Any
such issue would be first considered by the Australian
Dairy Produce Board and the Department of Primary
Industry. But I think it would come to me pretty
fast, and I have no knowledge of it at all,
Has the Goveruiment yet decided on an Ambassador to
Moscow, Mr. McEwen?
No,
Another point on this " Food for Peace"-When you
came back fr'om America, you said that ii the
Americans as i understand it if the Americans
wanted to step up their disposals following the
" Food for Peace" Conference, there would have to be
some assumption by the Americans of some obligations
towards stabilizing, or ensuring that we would be able
to have export earnings sufficient for our Durposes,
or there w-ould have to be some compensation to us if
the Americans expanded their surplus sales into our
markets. Do you think, following what you know of
the developments at the " Food for Peace" Conference,
that we will have to pursue that line of approach?
I don't think that we will. I don't feel able to be
dogmatic about this, because I feel that there has
been some shift of American policy some indication
of shift of American policy even since I was over
there In other words, they are shoving signs that they
would be prepared to bind thenselves in sor1 way to
not making sales that would affect our commercial
sales?
Well, they have been, from the outset, very
forthcoming in giving assurances that they recognise
our claim to be protected in our legitimate conmiercial
opportunities. They accept that as a principle, Th2hey
will, I am sure, come out with a much more effective
and continuous instrument of consultation, because to
accept the principle is not enough in a spatter of
individual transactions, We have always relied on
two things acceptance of a principle and then the
backing of that principle by an instrument of study
and consultationo, I think that that will be one
of the outcomes of this conference. On the other hand,
the operation of this declared principle is very
important if there be any appreciable increase in the
actual non-comiercial disposal,
QUESTION:
MR. McEWIEN:
QUESTION:
MR. McEWEN:
QUESTION:
MR. McEWEN: What form do you think this instrument of
consultation could take?
Well first it could be a committee formally
constituted, including representatives of all the
commercial exporters of wheat. So it could have
-a basis of existence founded upon an agreement a
formal agroement between the countries concerned.
Then it would need to have an appropriate charter
which would need to be a charter governed by a
declaration of principle and procedurally capable of
continous and particular study of the financial
capacities, for example, of individual countries to
buy commercially; what inhibited them from buying
commercially a complete exchange problem or an
exchange problem flowing from a diversion of their
exchange resources to developmental programmes, as
distinct from consiumption imports. These are the
k~ ind of things.
Is there some evidence that the Americans appreciate
that some countries are transferring their exchange
problems to us?
Yes, I think there is. And I really think there will
flow from this conference an acknowledgement of the
peculiar interest of Australia in wheat trade with
the Asiatic countries. They have been our historic
markets and, of course, we have the -eographic
advantage of freight.
Have you yet decided on the composition and terms of
reference of the committe to review taxation laws?
No, we have not,
With the Compliments of:
HUGH DASH
PRESS SECRETARY TO THE PRIME MINIS-TER.
4