PM Transcripts

STATEMENT BY THE PRIME MINISTER, THE RT. HON.
HAROLD HOLT, IN THE HOUSE OF REPRESENTATIVES
7TH MARCH, 1967
TASMANIAN BLJSHFIRE AID
I desire to inform the Wnuse that I have this day informed
the Premier of Tasmania that the Govorrinent has agreed to his
to provide special financial ac-sistanc. to the State of Tasmania L& c. rdance
with the broad terms and conc.. iions sez out in the report b. y Offfcers
of the Tasmanian Government and agrcc~ d to by officials of the ( Comi-n-nowealth
Government, based on the case presented on behalf of the Govera;.; S,, flC of
Tasmania. As agreed, the measures of assistance that will be introduced
will be State measures with the Commonwealth standing behind the State to
provide adequate support for the State's ove: 41al financial position. Ti'is
would accord with the arrangements agree-with the States of New South Wales
and Queensland in connection with assistance for drought measures.
Estimates of the maximum assistance likely to be required by
the State indicate that the total amount that will have to be provided by the
Commonwealth will be about 14.5 m~ illioni dollars. This estimate is, however,
tentative and may be subject to substantial revision.
As in the case of the drought measures, the Commonwealth's
overall financial assistance to the State will be provided partly by way of
interest-free loans and partly as grants according to the proportions in which
the State's own expenditures, under the various measures, take the form of
loans and grants respectively. Loans made by the Commonwealth will be
interest-free and have a term of fifteen years. Repayments will be sought
in twelve equal instalments over the last twelve years of the loans.
The Commonwealth is proposing to provide loans to the State
free of Interest on the understanding that the State will charge interest, where
appropriate, on advanm for housing and loans to businesses and primary
producers. The interest received by the State is regarded as being available
to enable the State to meet any losses arising from bad debts. We also
expect that any excess of interest received by the State over its requirements
should be applied to reduce its dependence on special grants.
As soon as possible a Bill will be presented to the Commonwealth
Parliament to authorise payments of Commonwealth financial assistance to
Tasmania. I expect that the bill will be drawn in general terms to authorise
a grent and a loan to the State of Tasmania for measuires associated with the
f ire. In the meantime, our officers will continue to be in contact on
detailed arrangements. From the outset I have, on behalf of the Commonwealth, assured
the Tasmanian Government and people that the Commonwealth Government
would approach their difficulties in a helpful and, indeed, a generous fashion.
I knew that this would be supported by the people of Australia as a whole. I
am glad, therefore, to be able to report to the House that we have met in
substance the requests which have come to us from the Government of Tasmania
and we hope that this quite substantial assistance will quickly enable the
people of that State to be restored to full economic operation.