COMMONWEALTH OF AUSTRALIA
SPEECH BY
The Rt Hon. J. G. GORTON, M. P.
ON
DROUGHT RELIEF IN QUEENSLAND
( Ministerial Statement)
[ From the ' Parliamentary Debates', 5 May 1970]
Mr GORTON ( Higgins-Prime Minister)
-by leave-Honourable members are
aware that the State of Queensland has been
affected by serious drought conditions for
several years. They will also be aware that
the Commonwealth has been providing substantial
drought relief -assistance. Under
present arrangements, the Commonwealth
has agreed for 1969-70 to meet on a $ 1 for
$ 1 basis expenditure on eligible drought
relief measures up to $ 4m and to meet the
full cost in excess of $ 4m, and it is currently
estimated that the Commonwealth
will need to provide some $ l5m under these
arrangements in 1969-70. That would bring
total Commonwealth drought relief assistance
to Queensland since 1965-66 to over
$ 32m. Honourable members will also know
that the Premier of Queensland recently
proposed certain modifications of existing
relief measures. Following Cabinet consideration
of the Premier's proposals, I have
now informed the Premier that the Commonwealth
is prepared to reimburse the
State for carry-on and re-stocking loans
made to graziers to enable Queensland to
extend the existing limits on those loans.
The Commonwealth has always adopted
a flexible attitude to the limits of drought
loans. Our main concern has been that
normal commercial sources of finance
should first be exhausted and that in making
a loan the State authorities should satisfy
-themselves that the applicant has a reasonable
chance of recovery. It will be for the
156811~ 70 State to determine the new limits, and the
rate of monthly payments of loans, in the
light of the circumstances of individual
graziers. I have also informed the Premier
that the Commonwealth is agreeable to his
proposal for graziers who have received
drought relief carry-on or re-stocking loans
under the 1969 drought relief arrangements
to have their loans, including any unpaid
sums under the earlier 1965 arrangements,
consolidated as at 30th June 1970. 1 understand
that the State's objective is to give
further relief to graziers by extending the
period during which interest will be
capitalised and no redemption payments
will be required.
The Commonwealth has also agreed that
rebates on the transport of stock for restocking
purposes, which at present apply
only to breeding stock, should be extended
to cover all stock transported for re-stocking
up to a property's normal capacitywhether
this involves stock purchased or
stock returning from agistment-provided
that the stock are held for a minimum
period on the ' grazier's property before
being elfigible for rebate. In addition, because
of the widespread effects of the drought
on Queensland pastoral areas and the fact
that New South Wales could be a major
source of stock for re-stocking when the
drought is over, the Commonwealth has
indicated its willingness to reimburse the
Queensland Government for expenditure
on freight rebates on stock purchases in
New South Wales for re-stocking and on
returning from agistment in that State.
The existing measures provide for additional
carry-on loans to assist droughtaffected
graziers with the payment of crown
rentals and local authority rates in 1969-
We have now agreed to further assistance
in this regard in the form of grants
to the State to enable it to meet half the
cost of rates payable in 1970 by graziers
who have experienced drought for more
than 2 years in the 2 droughts of 1965-67
and 1969-70 and who are demonstrably in
need of such assistance. Even before allowing for the additional
cost in 1969-70 of the agreed extensions
to drought relief measures to which I have
referred, the Commonwealth contribution
towards drought relief measures in Queensland
this year would be easily the largest
amount ever provided to any State for
drought relief in a single year. The Government
believes that the additional measures
which I have now announced will make a
further substantial contribution to the relief
of those farmers and graziers in Queensland
who continue to be affected by
drought.
W. G. MuUAY, Government Printer, Canberra