FOR PRESS: PM. NO. 26/ 1970
RUMOURS ABOUIT PROPOSED INDUSTRIAL 1
DEVELOPMENT CORPORATION
Statement by the Prime Minister, Mr. John Gorton
It is necessary to dispose of some of the wild stories and
mistaken rumours which are circulating concerning the proposed
Industrial Development Corporation.
An official, detailed statement will be made at the
appropriate time by the Government, and prior to that any
observations on the details of the proposal can be nothing but
speculation. However, there are certain matters which should be
made clear. These are
It is not intended that the Corporation should have the
status of a bank or that any loans it negotiated would
be guaranteed by the Commonwealth.
It Is not intended that the Corporation should work under
the jurisdiction or subject to the direction or influence of
any Commonwealth Department. It would be an institution
established by the Government by statute and be entirely
free of any influence other than that set out in the statute
creating it. It is intended that its directorate should
include iion-Government persons of top business
experience. It would in no way diminish capital in-flow from overseas.
Its objective would be, on the exercise of a business
judgement, and when an Australian enterprise desired it,
to substitute fixed interest borrowing abroad for some
of the overseas money at present supplied in return for a
surrender of Australian equity. Any internal borrowing
would be kept to an absolute minimum and would be subject
to the agreement of the Reserve Bank.
It would in no way conflict with the functions of the States
or in any way affect their freedom in industry matters.
2.
Its function is to tap those sources of overseas funds
from which overseas companies at present borrow for
investment in Australia. If it does this, and thereby helps
to assure that a greater proportion of Australian
development remains in Australian hands, its objectives
should commend themselves to all who do not think
attempts to maximise Australian ownership are
positively bad.
CANBERRA 11 FEBRUARY 1970