COMMONWEALTH OF AUSTRALIA
SPEECH BY
The Rt Hon. W. McMAHON, M. P.
Prime Minister
ON
Relief of Non-Metropolitan Unemployment
Ministerial Statement
[ From the ' Parliamentary Debates', 2 December 1971]
Mr McMAHON ( Lowe-Prime Minister)-
by leave-I wish to inform the
House that I have written to each of the
State Premiers seeking agreement to the
introduction as soon as possible of a
scheme of Commonwealth grants to the
Sta-les for employment-creating activities in
non-metropyolitan areas where such -action
is desirable for social and economic
reasons. Te Government has been concerned,
as I know the State governments
have been, at the difficulties confronting
some of our rural industries-wool, in particular-
and the communities dependent on
them. We are, of course, with the cooperation
of the State governments, where
appropriate, already providing massive
assistance to the industries in quest-ion.
Indeed, as the House will know, I have
had correspondence recently with some of
the Premiers on these matters and particularly
on the problem of unemployment in
non-metropolitan areas.
The Government is determined to meet
and overcome the problems facing the
rural industries that are in difficulty. But
that will take time, and we believe that
meanwhile there is a need to take temporary
measures for the alleviation of unemployment
in non-metropolitan areas, with
the social problems associated with that.
This is a particular aspect of the difficulties
facing our rural populations and one which
is of increasing concern to us. Much of this non-metropolitan unemployment
is of a structural kind and, therefore,
requires particular rather than
general economic measures to deal with it.
As the health of the rural industries concerned
improves, this will contribute over
a period to the alleviation of non-metropolitan
unemployment. The current rural
reconstruction scheme and the retraining
programme and rehabilitation assistance
associated with it will make a useful contribution.
But all these measures will take
time to become fully effective and, in the
meantime, the stubborn economic and
social problem of rural unemployment
seems likely to continue unless specific
short term action is taken to deal with
it. Following my return from overseas the
Treasurer ( Mr Snedden) had discussions
with me about this matter, and subsequently
Cabinet has considered the problem
and possible responses to it. A
measure which we believe would have a
quick and direct impact on the problembut
without significantly impeding the long
term adjustments necessary to meet changing
economic conditions in rural areas-is
the provision of funds for employmentcreating
activities in affected non-metropolitan
areas and I have written to the Premiers
proposing a scheme of grants for
this purpose.
The details of the scheme would, of
course, be determined in consultation with
the States. In -broad terms, however, the
Government envisages an arrangement providing
for grants for employment-creating
activities to be made to the States for the
period up to 30th June 1973, subject to
review after 30th June 1972 in the light of
the then prevailing conditions.
The objective of the scheme would be to
make a significant impact on the level of
unemployment in non-metropolitan areas.
Thus, grants would be made for the purpose
of reimbursing expenditures on additional
labour-intensive activities of a productive
kind which might be undertaken
by State, semi-government and local government
authorities to provide employment
for those unemployed in non-metropolitan
areas. Recent grants made to some States
under the drought relief arrangements to
enable the employment of persons who
were unemployed as a result of drought
might be taken as a broad indication of
the type of scheme the Government has in
mind. Obviously, since the details of the
scheme remain to be settled with the Premiers,
it is not possible at this time to put
any precise figure on what the cost of the
scheme might be in the balance of this
financial year. Details will, of course, be
given as soon as they can be worked out.
and, on the assumption that the proposal
will meet with the approval in principle of
the Premiers, the Treasury will be moving
speedily to arrange the necessary discussions
between Commonwealth and State
officials. The chief costs involved are, however,
likely to be wage costs, plus some lesser amount-perhaps up to 25 per cent
of the total-for the purchase of materials
and, perhaps, equipment. A figure of $ 2m
a month or thereabouts might approximate
the kind of broad order of cost we have in
mind but having said that, I must add that
there are numerous uncertainties about
such a figure at this stage. Much will
depend not only on our discussion of the
details with the States but on the extent to,
and the speed with, which they can give
effect to the proposals. In this latter regard
I may mention also that we would envisage
the Department of Labour and National
Service being closely associated with the
scheme at the ground roots level. But, for
all the reasons I have indicated, we do not,
at this stage, have a closed mind on the
question of the precise amount to be
provided during the balance of this financial
year even though we have in mind
something of the order already mentioned.
On the assumption that these proposals
will be acceptable in principle to the Premiers
we shall require to bring forward to
the House early in the autumn session legislation
to authorize the necessary grants to
the States. Meanwhile, however, temporary
arrangements will be made for the financing
of the scheme in the interim. I believe
that that would, in all the circumstances,
meet with the approval of the House. This
proposal, of course, demonstrates the Government's
readiness to respond to changing
circumstances. Designed as it is to meet
the emerging social and economic problem
of unemployment in non-metropolitan
areas the scheme will, I believe, be warmly
welcomed by the House and by the community
at -large.
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