COMMONWEALTH OF AUSTRALIA
SPEECH BY 2O2* C T~ 9
The Rt Hon. J. G. GORTON, M. P.
ON
POWER HOUSE FOR CENTRAL QUEENSLAND
( Minlisterial Statement)
[ From the ' Parliamentary Debates', 26 September 1 969]
Mr GORTON ( Higgins-Prime Minister)
-by leave-In September 1968 the Premier
of Queensland wrote to me concerning
negotiations between the Queensland
Treasurer and industrialists interested
in major development in Queensland. The
Queensland Government intended to build
a power house in central Queensland to
feed electricity into the Queensland grid,
and proposed that the Commonwealth
might provide capital so that the power
house would be larger than one required
solely for this purpose, and so that the
additional capacity could be used to attract
industries to central Queensland. The basic
requirement for such industries, if they are
to be so attracted, is the provision of large
blocks of power on a continuous load basis,
at tariffs comparable with those offering in
major industrial centres overseas. If this
could be attained it appeared there was a
real possibility of the development, in that
underdeveloped area, of a new industrial
complex that would grow and become a
tangible expression of our interest in decentralised
development.
At this point I stress the advantages
which this underdeveloped part of Australia
possesses. There are vast coal deposits and
cheap steaming coal is available as a byproduct
of the coking coal export industry.
There are extensive brine deposits as raw
material for a power intensive chemical
industry producing caustic soda for the
22750/ 69 alumina industry and chlorine for export.
The existing alumina industry will expand
with consequent opportunity for aluminium
production, which requires large amounts
of power. A deep water port and harbour
facilities suitable for bulk carriers are
ready at hand in Gladstone. All in all it
is an area crying out for that development,
and for that use of its natural resources,
which will benefit the area itself and add
to the greatness of the nation. It offers an
exciting opportunity for a great stride forward
in national development. And it offers
opportunity to increase our exports.
After preliminary consideration I
arranged with the Premier that Commonwealth
and State officials should examine
the proposal. In March 1969 our officials
met with their Queensland colleagues to
consider the technical proposals prepared
by the State Electricity Commission of
Queensland. These official discussions continued
in April and May. At that time the
Snowy Mountains Hydro-electric Authority
was retained as consultants to make an
independent study of the proposal. The
Authority presented a comprehensive report.
Following study of it by the officials, the
Premier of Queensland, on 25th August
1969, presented the State's financial proposals
for the development of the project.
An interdepartmental committee, after
examining the project in depth, reported to
us on 19th September.
The Government is greatly impressed
with the potential of the project both for
the development of central Queensland and
for the development of exports. We are
convinced that the project is feasible from
a technical point of view. We believe the
estimates of cost are soundly based technically
and financially. We believe thatgiven
the establishment of certain key industries-
there is a real prospect of
attracting a variety of other important
industries in the future. Given an initial
stimulus we think that growth will continue.
We believe that the wide spaces of
central Queensland, which are presently
underpopulated, will be able to develop
natural resources to the full and will see
towns grow to cities. Therefore, on behalf
of the Commonwealth I have advised the
Queensland Premier and Treasurer that we
are prepared to advance up to $ 80 million
to the State over a 6 year period to help
with this scheme. It is proposed that the
advance should be repayable over 30 years
and that it should bear interest at the semi-
Governmental rate. This offer is made for the purpose of
financing that part of the power station
which will meet the requirements of the
special industrial development envisaged
and it is hoped that this will enable the
power station to sell bulk supplies to the
industries at rates which will enable them
to compete in world markets. The offer will
enable the Queensland Government to proceed
further with its negotiations with
industry and to settle with the Commonwealth,
as a result of such negotiation, the
exact amount of the advances which will
be required and the final terms and conditions
for the servicing of the loan. The
offer is, of course, conditional on the State
being able to satisfy the Commonwealth
that it can attract a viable export-oriented
industrial complex in central Queensland
with a demand appropriate to the output of
that part of the station which the Commonwealth
contribution is intended to finance.
Should this proposal come to completion
I believe it will provide a great strengthening
of Queensland and of the Commonwealth
as a whole.
Printed for the Governmezit of the Commonwealth by W. G. MURAY at the
Government Printing Office, Canberra