DEPUTY PRIME MINISTER
MINISTER FOR TRADE
LEADER OF THE AUSTRALIAN COUNTRY PAR
at
SHEPPARTON, Victoria
NOVEMBER, 1961
EMBARGOED: Do not broadcast or publish before
8 Monday, 20th November, 1961.
AUSTRALIAN COUNTRY PART
196l FEDERAL ELECTION
OPENING SPEECH
PART II
by
THE RIGHT HONOURABLE JOHN McEWEN
P. ART I I
EMBARGOED: DO NOT BROADCAST OR PUBLISH BEFORE:
8 MONDAY,. 20th NOVEMBER, 1961.
I have earlier outlined the major policies for
which we stand the policies for which our Government and the
Country Party stand., These policies we will pursue vigorously
in the future as we have in the past.
As I have said previously the record of more than
a decade of our administration of this country's affairs is, I
believe, an impressive one. It's a period in which we have paid
full regard to the overall needs of the nation. Of course, nothing
is more basic to the development of the Australian nation than
the safeguarding of the interests of the primary industries. Nothing
is more fundamental to the build-up of our population than the
safeguarding of the interests of the manufacturing industries.
And we have had both clearly in mind.
In regard to the primary industries we have been
aware that there'is a problem of costs producing in a fairly high
cost country like this and selling in competition with the outside
world. And the consciousness of that problem, inherent for
primary industry in Australia, is part of the explanation of the
economic policies of last year.
Primarily they were policies designed to arrest
inflation. There was in mind, the necessity to see that there
wasn't a continous internal spiralling upwards of costs, making the
competitive position of primary industries intolerable. In the
bank credit'squeeze, we had a curtailment of credit, but a
reservation that credit was not to be curtailed by banks, to
export industries. / 2.
2-
We had a lift in the interest rate, but again
a direction to the banks that the interest rate was not to be
raised in the case of primary export industry. Here is the
awareness of the Government, and I think it fair to say here
comes out thie consciousness on the part of the Country Party
of its specialised role in this scene.
Taking the industries one by one we have policies.
Wie believe that our fellow Australians, for what
Sthey buy and consume at home, ought to pay a fair Australian
price, not the open world price which is often a depressed one.
So in industry after industry we have the concept of a home price.
Where itts necessary, we have a protective tariff for primary
industries, just as wve have a tariff to protect secondary
industries. Overall we are wanting all the time to sustain the
that the Government isn't the enemy of the people, the
Government is the partner of the people.
So in these primary industry arrangements vwe
constantly work as a government in consultation with the industry
concerned. In wool we have worked all the time that way, for
example, for the protection of the auction system 10 or 12 years
ago, or again in negotiation of the Japanese Trade Treaty, or
an endeavour to get the duties down on American wool.
If it is a problem of the costs of woolgrovwingq
or research to step up the efficiency of wool-groUing; if
there's a discussion about reserve price plan all the time,
we are working, not in insulation from the industry, but in
close consultation, and I believe with great and profitable results.
-3
The Japanese Trade Treaty I am sure has put an
enormous amount of money into the pockets of Australian woolgrowers.
I've said, and I believe itt true, that the strength
of Japanese competition has added as much as œ C50 M. to the value
of the Australian clip in one season. That's w--hat has gone into
the pockets ef wool growers in one eeason from the transformation
of the Japanese from modest buyers into the biggest buyers in
the world of our wool.
Now we have the Woil Enquiry set up, and as soon as
the result of the Wool Enquiry is out, we will go into consultation
with the industry to decide what is the best thing for the
Government to do, what the industry wants, to protect the
future of this great industry,
And similarly, but differently, we've worked in
consultation with the wheat industry to establish a stabilisation
plan a home price; to discuss the overseas marketing arrangements
in wheat the International Wheat Agreement; the United Kingdom
Trade Treaty under which we have obliged the United Kingdom to
buy 28 million bushels of our wheat ayear and the Japanese
Treaty similarly. And so on, selling wheat or flour around the
world. What I now say is that as this present great stabilisation
plan draws to a close, we will in adequate time beforehand, go
into intimate discussion with the wheat industry, and the State
Governments, who are principals in the stabilisation scheme
and from those discussions, in this atmosphere of partnership,
we will work out with the industry the details of the stabilisation
plan to replace the present one. / 4.
-4
In dairying the story is again as I say, th
sam but different in detail. Home price for butter and cheese,
constant overseas negotiations to safeguard the sale of our
dairy products overseas; support for the home market, encouraging
bigger consumption by subsidising the cost of butter and cheese
t4 the Australian consumier To stabilise this great industry and
to keep prices down to consumers here we have provided œ-180
million over 12 years.
Here's an industry that in certain areas has real
problems. We will work closely with it and vie will replace the
present dairy stabilisation plan, for another period with a plan
that will have been worked out with the industry itself and the
State Governments. And with the sua industry in Queensland again
the same kind of approach; a fair home price for sugar, negotiations
overseas to keep wol prices stable; special negotiations to
sell to the British, our biggest buyers; preferential sales to
Canada; entry to the high priced American market; sales to the
Japanese our third biggest buyer since the Trade Treaty all
the time negotiations for the sugar industry, to see that we are
acting to support this great industry along lines that the
industry wants. And in accordance with our Counitry Party and
our Government's policy all the time working with the sugar
industry. And for meat take the Long Term Meat Agreement
which has been of very high value to the beef industry. Not
only have we distributed œ 9qj M. collected from the British
Treasury under it, but the market price at auction has been
sustained. I said a couple of years ago that the value of
beef herds in Queensland was, I was quite sure, œ C50 M. higher
than it would have been without the Long Term Meat Agreement.
Then when the chance emerged for the first time for us to break
into the high-priced American market with manufacturing beef,
that was negotiated. We negotiated sufficient flexibility within the
United Kingdom Agreement to enable entry into the United States
market. Everyone knows that the boom in values of beef which
followed, was not only enjoyed by the beef producers, but
benefited to a tremendous extent the dairy farmers, by getting
them a high price for their cull cattle and to that extent,
lifting the efficiency of the dairying industry.
Industry after industry has received consideration.
The cane fruit industry, here in this great
irrigation area, and the M. I. A. and dowm the Murray in South
Australia~ is very efficient both in the orchard and in the
cannery. It has a magnificent record as an exporter and
employer of labour. We wish to continue satisfactory arrangements
with the sugar industry, which contribute to price stability for
canned fruit growers. We will continue support for the sale of
its products overseas to preserve the stability of this great
industry. In a different but quite effective manner the
dried vine fruit industry has been supported by negotiated
arrangements at home and overseas. Ple are determined to preserve
the stability of this great industry which has a special
importance because entire communities are built around it. / 6.
7-
6
We are not without troubles in some of the
industries. Take the tobacco industry as an example. Here
is one that wie found, flat on its face in 1949 and we lifted it
by policies to a level of prosperity greater than that I think
enjoyed by any other primary industry; this produced an amazing
expansion 50% increase each year in the quantity produced in
recent years, and now unhappily there is trouble in the industry.
I am not going to devote myself in this speech
to details of tobacco. I shall speak again specially about
O this industry. Recently when the industry asked us to help them
in setting up a Committee of Inquiry we immediately acceded and
provided assistance, financial and other;! ise, to enable the
Tobacco Industry's own leaders to make their investigations of
the industry's problems, present and future.
I pledge that we will not let up, either Country
Party or Government, until the tobacco industry is restored to
a position of stability and progress once again.
Some Labor Party spokesmen are today trying to
secure the political support of tobacco growers with rash promises.
I know that all groviers who have been in the industry since
Labor was last in power will remember the peasant level to which
growers had been reduced by 1949, after 8 years of Labor
responsibility for the tobacco growers.
And, of course, there are other primary industries
that I haven't the tima to talk about now in detail but the
Country Party and our Government will work in co-operation with
every primary industry to ensure profitable stability. / 76
I have been speaking of marketing aspect.%
There is alsn the aspect that has loomed high in our minds of
aiding in the efficiency of production. Here, no Government
has a record comparable with ours in the outpouring of millions
of pounds of money for research and for Extension Services.
This is our Policy. We have provided millions for research in respect
of wool, millions for research and Extension Services for
dairying, and enormous sums for tobacco.
Now, in more recent time, all of the major primary
industries, practically without exception, have come to accept
the idea that a Government such as ours in not an organisation
to hate or to fear or to doubt, but one to work with.
So, industry after industry has come to us and
said it would like to con-tribute something to this great work of
research and Extension and market development. Industry after
industry has asked the Government to pass a law to impose a levy
so that everybody engaged in dairying, or wool or wheat growing,
or w;. hatever it is, should contribute equally his share towards
this valuable research, production and marketing work.
Out of these approaches by the various industries
this idea of partnership betaeen Government and Industry which
I have been preaching for years has now been taking firm shape.
At the request of the variou-s
Now, all industries are making a contribution by levy.! industries vie
have legislated for a levy on wool; on wheat -1d. a bushel;
on dairy produce; on beef ( sugar levies itself) on tobaccos
on the canning fruit industry for promotion purposes; on the
wine industry all are now contributing in a partnership
with the Government, with the Government always also putting in
its balancing share of money. / 8.
-8
So gigantic research activities are proceeding with
the industry concerned entitled to take a part in directing the
activity. The results of research are going out through
Extension Services, mostly through the agency of State Governments,
to get the results of research onto the farm. Market promotion
is going ahead at the same time.
So we have recognized the problem of costs at home.
VWe have dealt with price on the home market, with stabilisation
schemes, research, Extension Services, promotion, that kind of
thing, always developing the reality of partnership bet,.-een
Government and industry.
But there are aids to industry primary industry
of a more general kind.
I have already spoken of last year's so-called credit
squeeze, where our policy said that in respect of export industries
alone, there was to be no restriction of bank credit, and no
increased interest rates.
The Develop~ ment Bank, of course, emerges from the
old Country Party request of quite many years ago for a Mortgage Bank.
Now we have a Development Bank with, as I have said a little
earlier, capital and other funds that give it a lending capacity
of about fœ' 5 M. at the present time.
The rest of the problem of primary industry is, of
course, in the field of export promotion the right to sell; the
negotiation by the M, 1inister for Trade of the right to get into an
overseas market and of the terms upon which we get in; then the
Trade Commissioner Service to aid selling.
Trade Publicity in the United Kingdom is under the
direction of a Committee in London which includes representatives
of the Industries whose products are being sold, merchants and
Commonwealth officials. The Export Payments Insurance Corporation can insure
Export transactions which cannot be commercially insured.
-9-
We aided the export industries in freight negotiating
with the shipping co mpanies. Since 1956 the Export industries
wanted to do it themselves. So we have put up money to help them
to have the strongest organisation to enable them to put their case
to the shipping companies,
Quite recently I have announced that the Government
has negotiated the commencement of two new shipping services to
South America, and to get them going we are for a period accepting
some financial liability.
This work for export continues all the time. The
Country Party and our Government believe that the great primary
export industries are entitled to the support of Government and
O that we want the job of export to be regarded as a partnership
venture in which we help.
Now there is overshadowing us this enormous problem
of the European Common Market.
I am going to make that the subject of quite separate
and specialised speeches to analyse it.
Of course, I am involved as the Minister for Trade,
in trying to safeguard our trading interests. What I say here in
* broad terms is that the whole resources of government w., ill be
devoted to safeguarding the interests of the Australian export
industries as the United Kingdom negotiates to join the Common
Market. We will not accept it that any single Australian
industry is expendable as a price for the preservation of other
industries. All will have our best efforts of protection, and
if any should unhappily be grievously harmed then I pledge that
we will stand by industries should they be so harmed.
So much for the general field of primary industry.
I shall make special speeches in respect of manufacturing industry
but let me say here that as in the case of primary industry,
manufacturing industry in our opinion, is entitled to protection
in the home market.
10
That's our concept whether it be primary or
secondary industry. Again, whatever policy ought to be made -on time to
time, we want to emerge from relations of partnership between the
manufacturing industries and the Government and we have set up
organisations as a point of contact there.
As we are reaching out now, to put it to manufacturing
industry that national need requires them to engage more in export,
I am making it quite clear that I don't believe that manufacturing
industry will be able to export unless given a firm grip on the
home market. That's the only place where we can put our ovm price
put a fair price. To be strong at home, gives a strength to
export, whether it be a farm. or factory product.
The Country Party believes in this. I have
illustrated it in wh-at and dairying and sugar and all these other
thing7s. There are quite a number of primary industries that
actually depend upon tariff protection.
There is no tension today between the Country Party
or the primary industries and the manufacturers. It is a matter
S of historical fact that it was I, the Leader of the Country Party,
who came up with the idea of supr lementing the Tariff Board
S system with the concept of temporary duties, an arrangement under
which, with only a 30-day inquiry, an industry which could
demonstrate that it was in real trouble from import competition,
could get a quick and adequate protection. Quite a number of
industries have benefited from that, including the Bruck Hills
across in Wangaratta. But here basic Government policy is at stake. I have
said again and again that there is nothing that we count more
important in this development of Australia than that we build up
our population. Ten million isn't safe in a Continent like this.
We want 20 million. 1.7e want 30 million. / lie
And we know perfectly well that we can't get tens
of millions on farms in Australia. Only peasant countries provide
a big proportion of population on farms. Ours is a high living
standard country. Where we will get the millions, tens of millions,
in this country is in and around great manufacturing industries.
It would be a contradication of all that I say and of all that we
as a Country Party and a Government stand for, if I, and the
Government, were not to give adequate Protection to economic and
efficient manufacturing industry.
Again, I pledge the wrord of the Government to see to
it that this is maintained.
As to the general effectiveness of our support for
manufacturing industry, there can be no doubt about that, for any
person who is willing to look at the facts.
In the last 12 years vwe have added 41% more factories.
Nowhere else has industrial expansion been faster.
The value of factory production today is 3-2t1i mes what it was when
we came into office 12 years ago.
The jobs in Australia are mostly jobs in or around
factories and the service industries. There are -J million more
O jobs in Australia today than there were when you elected us to
office 12 years ago.
This is the evidence that our Policy of building the
population of Australia, and building it with strong primary
industry, and a strong and expanding secondary industry, is net a
matter of words; it is now a matter of history. The results are
there to be seen and I have complete confidence that wie will
continue these policies of expansion just as effectively for the
future as we have done in the past.
That's what 1Mr. Menzies and I devote ourselves to.
Continuous development of A1ustralia is the high
ambition of my Australian Country Party. WUe bring to the
Parliament at Canberra a concentration on the problems of the
great primary industries of their export problems, and an / 12.
12
awareness of their problems when costs rise against them at home.
At the same time we wvili maintain an equal consciousness that all
we plan for the great future of Australia will be at risk if
we don't continue to build the population of this country by
supporting manufacturing industry, so that we can sustain our
migration programme and grow as we have grown in the last 12 years
from less than 8 million people to 1021 million today.
Give us another ten years a nd our population will
be lifted to 13 million people on tho policies that we propound.
And don't forget that it is no good just voting the
Government back to office in the House of Representatives
we have got to have a majority in the Senate also.
And so in every State I put it very high in my appeal
that people shall not only vote for but work for the Government
Senate candidates. Give us the powor and we will continue to do the job
for this country.
O SHEPPARTON. VIC.
November, 1961.