PM Transcripts

CO1MONWEALTH CONTRIBUTION TOWARDS THE COST OF
COAL LOADING FACILITIES AT THREE N. S. U. PORTS
Statement by the Prime Minister, the flt. Hon. R. G. Menzies
The Prime Minister, Mr. Menzies, said that he was pleased
to announce that the Premier of New South Wales had accepted, on
behalf of the New South qales Government, the Commonwealth's
offer of financial assistance towrards the cost of installing new
coal loading facilities at the ports of Newcastle, Port Hembla
and Balmain. As the Commonwealth Treasurer mentioned in his
Budget Speech, there are good prospects of a substantial
increase in coal exports from New South aes, but these
prospects will be enhanced if improvements are made to existing
port facilities for handling coal.
The New South Hales Government has undertaken to ensure
that its programme of work on these three harbours, estimated to
cost some œ 10 million over about three years, is carried out with
the maximum possible expedition, and that the funds necessary for
this purpose will be provided as required.
The Commonwealth has agreed to provide financial
assistance to Now South dales in respect of the provision of coal
loading plant and equipment ( including wharfage, storage and
associated rail facilities, but excluding the provision of deep
water berths) at Newcastle, Port Kembla and Balmain. This
assistance will be provided on a for matching expenditure
basis with the State and will be up to individual maximum
amounts of œ 1,500 000 at Newcastle, œ 1,070,000 at Port Kembla,
and œ 80,000 at Balmain.
Of the total Commonwealth contribution of up to
i2,650,000, an amount of up to œ 1 million will be by way of grant
and will be provided from the Coal Industry Fund held by the
Joint Coal Board. The credit balance in this Fund arose as a
result of the Board's activities using moneys provided by the
Commonwealth. It has been agreed that the remaining Commonwealth
assistance of up to œ 1,650,000 will be provided by way of
advances, each of wiich will be wholly repayable, together with
interest at per cent, by the State within ten years from the
date on which each advance will be made. Repayments by the State
to the Commonwealth will not be subject to any sinking fund
contribution by the Commonwealth.
Having regard to the uncertainties concerning the
volume of coal trade that will develop and the costs of handling
it, the Commonwealth decided to make part of its assistance by
way of grant. This grant element will be applied to reduce the
coal loading charges that would otherwise be levied for the use
of the new facilities at the three ports.
The Prime Minister said he was satisfied that both the
Governments have good reason to be confident that the new
handling facilities will stimulate the development of our coal
export trade. Not only will the prospective improvement in this
trade benefit the workers in our coalfields, but the additional
export income will be of significance to the whole economy.
CANBErRA, 31st August, 1961.