63/ 011
FOR PRESS P. m. No. 1& Lt9L
ECONOMIC ENQU~ IRY
Statement by the Prime Minister, the Rt. Hon. R. G. Menzies
I have already anniounced the Government's decision
to institute an Enquiry into a range of matters that bear directly
on the objoctives of economic policy as the Government sees them.
These objectives, which together constitute the mainspring of our
economic policies, are explicitly set out in the Terms of Reference
of the Committee of Enquiry now to be established. Their
paramount importance is not, I think, to be denied, but a problem
of increasing difficulty is to command a comprehensive view of all
the complex and interlocking factors that must enter into their
a, ch ie-vement. This problem confronts Governmeonts and their advisers
Wat every t-. urn and we have had constantly before our minds the
nature of the questions that the proposed Committee of Ehquiry
might be called upon to answer. We have now decided that the
Terms of Reference of the Committee as previously announced should
be given in somewhat greater detail and that certain particular
Wmatters that seemed of special importance should be specifically
included. In addition, we have decided to make it clear that we
expect the Committee, as far as may be possible, to draw together
the results of its studies in the form, of conclusions as to
the bear-in. g of those results cri the achievement of our overall
economic objectives. The Term-s of Reference for the ] ff-nquiry that we have
now decided upon are therefore the followving
" Having in mind that the objectives of the
Government's economic policy are a high rate of economic
and population growth with full employment, increasing
productivity, rising standards of living, external
viability, and stability of costs and prices, to enquire
into and report its findings on the following matters
The trends in population as a whole, in the work
force, and in the distribution o-f the latter
amongst various sectors.
The economic availability of knownm basic physical
resources,
The growth of domestic savings and investment.
Wd Overseas investment in Australia ( including likely
sources and trends and. an assessment of its
significance to the Australian economy).
The availability of credit.
Trends in costs, prices and wages.
Trends in productivity.
( W The pattern of growth and geographical distribution
of industry primary, secondary and tertiary
( including Lhe governmental sector). 0a 0a 9 a .00/ 2
2-
The consequences of this for the occupations].
pattern of the work force
Trends in the standard of living
The situation with respect to the external
balance of payments.
Questions involved in the production in Australia
of goods that would otherwise be imported.
Production for export and the securing of
adequate export outlets.
The effect of customs tariffs and other forms,
direct or indirect, of protection on the
disposition of resources and on the broad
economic objectives stated above.
The Committee will report the conclusions
reached by it as to the bearing which all or any of
the matters so ascertained have upon the achievement
of the economic policy objectives above stated."
The Committee, which will commence its work in the
near future, will comprise
Dr. James Vernon, C. BoE. ( Chairman)
Professor Sir John Crawford, C. BoE. ( Vice
Chairman)
Professor PH. Karmel
D. Ge Molesworth, Esq., C oBE.
K. B. Myer, Esq,, D. S. C.
Dr. Vernon is Managing Director of the Colonial
Sugar Refining Co. Ltd., which has extensive interests in
aspects of primary and secondary industry. He is well known
as a man of exceptional ability and judgment, with a fine record
of public service. Cabinet decided that the Chairmanship should
go to one who would properly be regarded as detached from any
present or past formulation or execution of government economic
policies. Sir John Crawfordts capacity to take a prominent
part in this investigation is universally acknowledged by every
section of productive industry and business generally, as well as
in high academic circles. When I told Sir John ( who was, of
course, for years the Permanent Head of the Trade Department)
that we desired to have a completely outside Chairman but that
we greatly desired his own services, he at once, with great
generosity, expressed his complete willingness to serve as Vice-
Chairman. Having regard to the burden of responsible work which
Sir John has recently assumed, we are most grateful to him. I
think that everybody will agree that an economic enquiry without
his influential participation would be seriously handicapped,
Professor Karmol, of Adelaide, is a distinguished
academic economist, of high repute in his own field.
8' 3-
Mr. Molesworth is Chairman of rP4. Walker Ltd., a
large meat packing organisation which controls abattoirs, cold
stores, and has interests in sheep and cattle. The company
at one time or another has been associated with virtually
every Australian primary product. It owns butter facteries
and has grown wheat as well as distributing fruit and
vegetables throughout Australia including Tasmania.
Mr. Molesworth has himself for 5' 0 years been
closely associated with primary industries both in marketing
at home and abroad, and in property management, He has been
a member of the Australian Egg Board since 194+ 8. He has most
valuably represented export interests in the negotiation of
freight rates on Australian exports. As a Chartered Accountant,
he was a member of the Commonwealth Committee on Taxation in
1960-61. He will contribute a knowledge of trading and
marketing problems of important sections of primary industry
and a wealth of experience in the problems of distribution,
management and finance.
Mr. Kenneth Myer is, of course, well knmown as
Deputy Chairman and Managing Director of Myer Emporium Ltd.
of Melbourne. The Governmont is grateful to these busy and able
men who have agreed to accept this additional burden, and is
confident that a great purpose will be served by the Enquiry
on whichi they are embarking.
CANBERRA 13th February, 1963.