BROADCAST NO. 2
BROADCAST BYTEPIEMNSIR THE RT. HON. RgG. MENZIES
OVEx NATIN,, L STA2'_ 1OjiS AT 2~ E D Y
RURAL POLICY
I have been at pains to point out, in various speeches,
the great importance of expanding our production and export of
manufactured and processed goods so as to strengthen our balance
of payments position and reduce the risks of special or emergency
mcasures, designed to reduce imports at times when export incomo
falls. But two things still remain true. The first is that
for many years to come our major exports, supporting our
inte,. nationa: solvency, will be of primary products. The second
is that no true and responsible national policy will disregard
the necessity of encouraging the productivity, efficiency, and
economic soundness of ou~ r rural industries,
It is of these industries that I now wish to speak.
'. Je have three great tasks affecting our rural
industries-1. To help cheapen production
2. To increase the quantity of production
3. To protect and expand our markets.
In a short broadcast, I can say just a few sentences about each.
1. COSTS. These always have a tendency to be pished up by
competitive wages and the cost level in the cities. But
the tendency can be resisted by scientific research (] ik3
that done in C. S. I. R. O) and extension services, When
we look back at the work done by the wheat-breeders, from
Farrer on; at the work of the researchers into the
nature and application of fertilisers; at the transformation
of hundreds of thousands of acres of almost
useless land by the trace-element discoveries; at what
myxamatosis has done -to put down the rabbit and put up
wool production; we realise that the best and most
enduring answer to rising costs is increasing efficiency0
As a Government we have never lost sight of this, and
have done much to assist it. Ole will continue to do so.
When our opponents were in office in 1949, the vote for
C. S. I. R. 0. was œ l. 7m. This year it is Over the
last 10 years, largely because of great scientific
investigation into soil deficiencies and animal
nutrition the area of scientifically improved pastures
in Australia lias increased from 20m. acres to 32r-n. acres.
I again remind you that of all the Members of the House
Of Representatives who represent and understand country
electorates, over three-quarters sit in or behind my own
Government, T11hey are not likely to overlook the -vital
importance of Australian primary production.
2. INCRE~ ASED PRODUCTION, Wdhat I have already said has a
direct bearing upon production. But we believe that
increased production of primary products is directly
related to maintaining a stable rural population enjoying
proper standards of living0 Our financial and taxation
policies have for many years been directed to this end,
and with advantage. I just have time to mention two
particular matters which will interest you particularly
at this time.
My own government introduced a special
provision for a depreciation allowance ( for taxation
purposes) of 20% per arinum on moneys laid out on farm
employees' housing. 4hen this legislation ends in
June 1962, we will ronev; it for a further period of
five years. '-de want to see the complete end of those'
old days when, because of inadequate housing, it was
difficult to attract and retain competent farm labour.
Again, in the Banking Legislation ofl959, we
gave a special position and charter to the Commonwealth
Development Bank. This does not compete with the
ordina'. j Trading, Banks for vhat i will call crdinary
l~ arking t-siness. It was established ( and I now
speak of rural finance) to encourage rural development
by dealing with cases in which ordinary bank finance
would not commonly be available. Take an example
A farmer wants to improve his property and increase
his production. His personal security is good; he is
a competent and responsible man. But his cash
resources ar,: small;, lie wants a long-term borrowing
which doRs not fit into the overdraft system; his
actual assets are not adequate to provide a normal
overdraft security. Financial accommodation for such
a man is essential. For such cases, the Commonwealth
Development Bank was created, and furnished with a
limited amount of capital. In our recent Budget we
provided it with an additional œ Cm. of capital. In
future, we will take steps to examine its work and
review its capital position so that it may have
adequate funds for its non-competitive but very special
and important Pfnnctions.
3. MABKcETS. You know that both here and abroad we are
working hard on the problems presented to * Australia by
the negotiations for the entry of Great Britain into
the European Cormon Market. As you know, if Great
Britain were to accede to the Treaty of Rome
unconditionally ( which I don't for one moment think
she will) we would lose our preferential entry for
many of our primary exports into the British Market,
while similar products from Europe which now pay
duty would enter Great Britain duty-free. The
British Government has agreed to do its best to
protect the Commonwealth interests. We, in our turn,
will bend every effort towards protecting our vital
export trade. As my own Ministers have great
experience and not a little influence, we hope to be
able to achieve satisfactory results, We have been
at particular pains to establish one most important
point. It is this. We cannot take our primary
exports as a whole and feel pleased if we preserve a
certain percentage of trade over-all. For the truth
is that, in a large continent like ours, many
individual industries have a special local
significance, and are not to be lumped in with the
mass. Let me illustrate, by a single example, what I
mean, In Australia, dried vine fruits are produced
in limited irrigated areas. Whole communities
largely depend upon them. Their prosperity, indeed
their very existence, would be directly affected if
they lost the British market. Larger and more
widespread industries, with more widiespread markets
could, though wounded, survive. I want to make it
clear that we will fight the battles of all. ' Je are
a young and growing nation, and we must therefore
have bigger and better markets. In our negotiation,
no Australian industry is to be regarded as expendabe
NO rural industry, great or small, will be let tmnbyus.
The negotiations are of historic importance. I
feel sure that you will wish them to be in the hiands
of people of experience, close knowledge, and
seasoned judgment.
We are a joint and united Government containing
Ministers from both the Liberal Party and the Country Party. We
have worked in complete harmony. Our policies are by our
common consent, joint policies. Undistracted by internal feuds,
personal differences, with no need to reconcile factions, we
have been able to present a common front to the problems of the
nation. a. rural matters we have worked in close
consultation with representative bodies. Our record in
stabilisation and extension schemes is clear,
A. e -ou going to vote for our opponents, who can claim
none of these things?