INTENSIFIED EXPORT DEVELOPMENT
Statement by the Prime Minister.
In relation to the economic measures announced last
November, the Commonwealth Government made it plain that it would
continue to give attention to the need to increase export
income. To give still sharper focus to its activities in this
field, the Government recently established a special Committee
of Ministers, wader the chairmanship of thc Prime Minister, to
carry through a comprehensive and continuous examination of
possible measures to develop exports and to improve our overseas
exchange position. The Committee consists of Mr. Menzies, Mr. McEwen,
Mr. Holt, Senator Spooner, Mr. McMahon and Mr. Adermann.
The Government welcomes the increasing public
awareness of the need for a continuing and progressive stepping'
up of the level of Australian export earnings if Australia is
to maintain both a satisfactory rate ' of de velopment and a rising
standard of living.
Throughout recent years there has been evidence on
many sides of a lively cntcrprise on the part of many in
developing ncw kinds of exports, in opening up ncw markets and
in raising thc level of cxport trade.
For its part, the Government has, over the years,
introduced a wide range of measures which have enhanced the
opportunities of Australian producers to gain profitable export
outlets. They include the negotiation of trade agreements with
p most of our major trading partners; the very substantial
strengthening of the Trade Commissioner Service; the
organisation of special trade missions; considerable Government
assistance in financing export publicity and promotion in the
United Kingdom and ether important markets; the establishment
of the Ex'nort Paymnents Insurance Corporation; taxation concessions
to encourage primary production and mining; research aimed
at increasing productivity in primary industries; and many
others. These efforts by industry, commerce and Government
have contributed to a substantial rise in the volume of experts
during the 19501s. Comparing 1959/ 60 with the average of the
la-st three years of the 1940' s, for examplo, the volume of
exports increased by 39 Per cent. Minerals, metals and metal
manufactures went up by no less than 154 per cent. Exports of
b 2.
wool and sheepskins, our biggest export item were up by 35 per
cent; lead and zinc by 37 per cent; and exports of coal rose
from 57,000 tons to 1,100,000 tons.
Similarly, great increases have been achieved in the
value of exports to particular markets. Australian exports to
Japan increased from œ 11 million to œ 135 million; exports to
New Zealand, which include a wide and growing range of
manufactured products, were up from œ 18 million to œ 54 million.
Among the smaller markets, the development of new trade is
reflected in the growth of exports to South Africa ( from œ 3.6
million to œ 8.1 million); to the Philippines million to
œ 4.9 million) and to Mexico million to œ 3.2 million).
Those are very real achievements for a country which is only at
D the beginning of its trading history with many of these markets.
They have done much to offset the difficulties cf holding our
position in some of our traditional markets.
p Running counter to these fine performances in
export production and the expansion of markets, there has booeen a
persistent decline over some years in the average prices we have
obtained for our exports. There has been no such decline indeed
there has beeoon an increase in the prices we have had to pay
for imports. This has meant that, despite our efforts to
produce more goods for sale overseas and find outlets for
them, we tend continually to fall short of earning enough
b abroad to pay for the increasing amnount of imports our growing
economy requires. Since prices of both exports and imports are
almost entirely beyond our control there is practically
D nothing we can do to remedy this aspect of the position. Our
only resource is to produce still more for export and sell it
wherever we can. We must produce, on competitive terms, mere
of our established lines of exports and more of such now
commodities as we find to be saleable overseas; and we must
search out openings for the sale of these products wherever
they can be found.
The Government is convinced that much more can be
done by Government and industry alike, and particularly
by co-operation between Government and industry to attain the
necessary rate of export expansion. That there are many
obstacles has to be recognised. For many rural exports, market
opportunities and prices are influenced by the practices of
overseas Governments and by international price fluctuations
rather than by the competitive ability of Australian producers.
Breaking into new markets often involves heavy establishment
costs which are all the more onerous for Australian exporters
because of their geographical distance from main markets and
the rather thin spread of their products over many markets.
But we must try to overcome these and other difficulties.
We should not place too much reliance on an upturn in export price
levels. A major factor in export capacity and performance
generally is, of course, the state of the internal economy
not only through the effct-s on comparative cost levels but
also through the impact w. hich internal demand makes, directly
or indirectly, upon ihe volume of goods available for export.
The measures which the Government has put in train recently
demonstrate its determination to help the competitive -position
of Australian experts.
The special Committee of Ministers is closely
examining particular indus-tries or sections of industry.
The Special Position of Steoel
In the last ten years the steel industry has roughly
doubled its output. But this has been insufficient to keep up
with the growing Australian demand.
During the period we have achieved some exports, at
times on a significant scale, but at times there have also been
very he~ avy imports of the kinds of steel made in Australia. The
net cost in foreign exchange of all iron and steel imports,
after allowing for exportlus, has exceeded œ 220 million in the
last ten years, A considerablo contribution to the bridging of the
gap in our ba-lance of payments could flow from taking fuller
advantage of the favourable competitive position we have in the
production of steel. Our resources of iron ore and coal can
certainly support a further substantial development of the steel
industry. We have high grade coal available on an internationally
competitive basis. The potential of our steel industry to bring
about a r: * duc-t'ion in import outlays and an increase in exports
cannot therefore be ignored.
The Government receg-nises that there are difficulties
in the way of vcry rapid expansion of steel production but it
will enter into discussions with th.; industry with a view to
examining how Australia might become a major and continuing
net exporter of steel.
4.
Iron Ore The possibilities of more fully exploiting our
resources of minerals are being closely examined. As announced
by the Minister for National Development on 2nd Dccember,. the
Gcvernnmnt has decided to pernit the export of iron ore under
certain conditions which will ensure that the interests of
Australian industry arc fully safeguarded. This decision is
expected to proc-ote intensified oxploration for iron ore
reserves and to produce important new exports.
Export Facilities The Connitteo is studying a number of possible ways,
not confined to traditional or orthodox :. easurcs, of helping
Australian exporters overcooe thuir very real disadvantages of
distances fron markets, low export lack of export
experience and so on. Along with other possibilities, the
Cocnittee is examining whether increased expert business could
be obtained by Gcvernnont co-operation or assistance in such
natters as increased trade publicity and advertising abroad;
market surveys; help in tendering for overseas contracts; and
possible ways and Lceans of warehousing Australian goods in
important overseas rmarkets to enable thoe to be offered for
sale from stock. In assessing the worth and practicability of
measures of this kind, Ministers are calling on the conmmrcial
judgaont and the expert advice available to then fron industry
and comnnrcc. They expect that the success of any measurcs
would depend heavily on enthusiastic support from industry and
conmerce. In respct cf a numbor of proposals of this kind
and many other aspects of export, the Expert Developnont
Council and the Manufacturing Industries Advis'ory Council have
done a groat deal of constructive work since their establishmont
two years ago. The Goverrnnnt's current endeavours have boon
discussed with the Chairman of those two bodies, and the
G-vernnent is confident of their continuing help and co-operation.
Taxation iiuch has been said about taxation in relation to
exports. The Governnent will carefully examinc proposals for
anonding sono aspects of taxation if they can be shown to offer
real prospects of putting Australian industries into a better
position to earn substantially increased export income or to
develop new lines of export, and if they can be accomolished
within manageable limnits. It will be necessary, of course, to
ensure that such proposals do not conflict with our international
obligations. A proposal relating to taxation, put forward by the
Export Developnment Council, is now being studied at the
Departmental level.
Export Franchises Ministers have also noted the extent to which
restrictive export franchises limit or preclude Australian
exoorts. In view of our need to earn more foreign exchange,
many restrictive export franchises are clearly not in the
O national interest.
S The Government expects that responsible management
of overseas concerns will recognise that it is in their own
interests, as well as in the interest of the Australian
S econo: Iy as a whole, that Australian enterprises be permitted
and assisted to compete freely in export markets. Manufacturing
industry would thereby be helped towards making a contribution
by way of export earnings that is more comensurate with its
own very large requirements of imports of plant and materials,
Tourism International tourism has rapidly emerged as one of
the great foreign exchange earners for many countries.
S Ministers arc satisfied that tourism could make a greater
contribution to Australia's earnings of foreign exchange,
The Government has therefore decided to take a more
I active role in overseas promotion of tourist travel to
Australia. It will work closely with the State Governments
which have important interests in this field.
The Government will continue its support of the
Australian National Travel Association which it has asked to
submit ideas for the development of this trade. It has
approved an immediate additional grant to A. N. T. A. to enable
it to accelerate some of its existing plans. It will also
ensure that full benefits to tourist promotion are obtained
from trade and general publicity overseas and from the
facilities available in Government offices abroad.
Insurance of Export Payments
A numiber of organisations concerned with exports
have supported a proposal to provide export payments insurance
6.
cover for sone transactions which are considered to be in the
national interest, but would be beyond the present scope of the
Export Payncnts Insurance Corporation. Similar facilities are
available to exporters in a nunibor of countries, including the
United Kingdon and Canada.
The Govern. ient has decided to introduce legislation
in the next sittings of Parliarent to a-iond the Export
Payments Insurance Corporation Act to provide means for the
Connonwcalth Govcrnent to underwrite certain types of
transaction through the Export Paynents Insurance Corporation
in cases where the Govern. nt is satisfied that this would be
in the national interest.
The Cornnittco of Ministers does not envisage
spectacular short-tern results. Prinary products pastoral,
agricultural and mineral will continue to provide the bulk
Sof our export incone for nany years ahead. But we have strong
hopes that manufacturing industry will be able to do ruch nore
to increase exports. In fields appropriate to Government action,
the Governnent, apart fron all it has done in the past, is now
making a thorough-going investigation of the neans by
which our external trading position might be improved. What
is required is a constructive effort to find measures which will
:. ako a real and lasting contribution. The Government is
confident that, with the assistance and co-operation of private
enterprise, nuch more could be achieved in this direction.
Canberra. 3rd January, 1961.