PM Transcripts

Transcripts from the Prime Ministers of Australia

Gorton, John

Period of Service: 10/01/1968 - 10/03/1971
Find more information on Gorton, John on the:
Release Date:
07/11/1968
Release Type:
Correspondence
Transcript ID:
1953
Document:
00001953.pdf 1 Page(s)
Released by:
  • Gorton, John Grey
FOR PRESS: P.M.NO. 90/1968 TASMANIAM DROUGHT RELIEF

FOR PRESS: P. M. No. 90/ 1968
TASMANIAN DROUGHT RELIEF
Following is the text of a telegram sent by the Prime
Minister this evening to the Premier of Tasmania ( Mr. E. E. Reece):-
" YOUR LETTER OF 22 OCTOBER RE SEASONAL CONDITIONS
TASMANIAN EAST COAST. WE ARE PREPARED TO ACCEPT
THAT THE CONDITIONS, IF REQUIRING RELIEF LOANS OF
$ 1 MILLION FOR DROUGHT AFFECTED FARMERS, WOULD
CALL FOR COMMONWEALTH ASSISTANCE. YOU WILL
UNDERSTA ND THAT COMMONWEALTH WOULD NOT BE
EXPECTED TO PROVIDE ASSISTANCE IF SUBSTANTIAL
RELIEF EXPENDITURES ARE NOT INVOLVED. IF YOU
DECIDE TO PROCEED WITH A SCHEME OF RELIEF LOANS
ON TERMS NO MORE LIBERAL THAN THOSE ADOPTED UNDER
THE DROUGHT ASSISTANCE ARRANGEMENTS INSTITUTED
BY THE OTHER STATES, THF, COMMONWEALTH WOULD
THEN BE PREPARED TO MAKE AVAILABLE FINANCE ON
THE FOLLOWING CONUYTIONS. ANY COMMONWEALTH
CONTRIBUTION WOULD TAKE THE FORM OF INTEREST-FREE
ADVANCES REPAYABLE OVER EIGHT YEARS. TO PRESERVE
CONSISTENCY WITH THE RELIEF LOANS PROVIDED BY OTHER
STATES, THE RELIEF LOANS WOULD NEED TO BE KEPT
WITHIN THE FOLLOWING PATTERN
THEY WOULD BE AVAILABLE ONLY TO DROUGHT
AFFECTED FARMERS WHO CANNOT OBTAIN
CREDIT THROUGH NORMAL COMMERCIAL CHANNELS.
INTEREST WOULD BE CHARGED AT A MINIMUM
OF 3 PER CENT PER ANNUM.
OTHER TERMS AND CONDITIONS WCULD BE
SIMILAR TO THOSE WHICH HAVE OBTAINED IN
STATES SUCH AS NEW SOUTH WALES AND
QUEENSLAND.
THE GRANTS COMMISSION WOULD NOT BE ASKED TO
MAKE AN ADVERSE " MODIFICATION" IN RESPECT OF INTEREST
" LOSSES" AND ADMINISTRATION COSTS WHICH WOULD BE
INVOLVED IN A NEW SCHEME ALONG THE LINES MENTIONED.
THE UNSPENT FUNDS TC WHICH I HAVE REFERRED ARE THE
BALANCE OF $ 288, 000 HELD BY YOUR STATE UNDER THE LOAN
( FARMERS' DEBT ADJUSTMENT) ACT.
AS YOU WILL BE AWARE THESE BALANCES MAY ONLY BE USED
BY THE STATE IN ACCORDANCE WITH PURPOSES SPECIFIED
UNDER THE COMMONWEALTH ACT. THE COMMONWEALTH
EXPECTS YOU TO USE THIS $ 288, 000 AND WOULD CONSIDER ANY
REQUEST BY YOU TO FACILITATE THIS.
COMMONWEALTH ASSISTANCE WOULD BE ON A FOR BASIS
FOR YOUR TOTAL EXPENDITURE. J. G. GORTON."
CANBERRA 7 November 1968

1953