Premiers' Conference and Loan Council Meetin!)-
Statement by the Prime Minister, the Rt. Hon.
William Mcahion, C. li iP
22 June 1972
This has been my fourth meeting with the Premiers in
this forum since I became Prime Minister.
The three previous meetings were all characterized
by a genuine effort by all parties to reach accommodations
which took account of the problems of all of us. I am
delighted to be able to say that the same atmosphere of
warm and friendly co-operation has once again characterized
this meeting. Our discussions on the States' fi1nancial. positions and
requirements were greatly assisted by the States making
available to us in advance of'the meeting extensive information
on their financial positions and prospeCts. We appreciate
their cc-operation in this.
The discussions today have been conducted with great
freedom and frankness. As a result I feel that we all have a
greater understanding of the problems each of us faces.
The Commonwealth, for its part, entered the discussions
anxious to do what it could to assist the States in meetin5T theirheavy
responsibilities. We know that they have great pressures
upon them. All sections of the community have their ox'm
requests to make. Each, naturally enough, sees its own
problems as being of greatest moment. The State governments are
therefore faced with a great variety of competing demands, which
they have to deal with in some order of priority.
-2
The Commonwealth is in a similar situation. One of
its highest priorities, however, is the need to enable the
States to meet their responsibilities. The allocation of
funds for this purpose is the greatest single element in the
Commonwealth Budget.
Against this background we approached this meeting
with the firm reso" lve that we had to reac~ h a fair and equitable
agreement with the Premiers, having in mind both their
responsibilities and the other responsibilities facing the
Commonwealth. I am glad to be able to say that we have
succeeded in reaching such an agreement.
The elements of this agreement are as follows:-
Revenue Assistance Additional assistance in the form of a permanent
increase of $ 112 million to the financial assistance grants
will be provided by the Commonwealth in 1972-73.~ This amount
will be built into the formula grants for the purpose of
calculating the grants for subsequent years, and will be
distributed in proportion to the 1971-72 formula grants as
escalated in 1972-73 under the formula.
In addition to this extra $ 112 million, the
Commonwealth will provide further amounts of approximately
$ 7.1 million to New South Wales and $ 5.4 million to Victoria
in 1972-73 by increasing the per capita payments over ' and above
their formula grants by $ 1.50 from the present $ 2 to $ 3.. 50.
The per capita payments, as increased, will be added to the
formula grants for the purpose of calculating the grants in
future years. A further amount of $ 3.5 million will, be paid to
Western Australia in 1972 -73 as a special temporary addition to that
3.
State's financial assistance grant in that year.
Borrowing Pro rammes
Works and housing programme
The borrowing programme for State governments will
total $ 982 million, an increase of $ 90 million or 10.1 per cent
over 1971-72. Of the total, $ 248.5 million will be in the
form of a grant, and ', 733.5 million will represent borrowings
to be arranged by the Commonwealth.
Larger authorities programme
The borrowing programme for the larger (" semi-government")
authorities will be $ 488 million, an increase of $ 49 million or
11.2 per cent over 1971-72. The basic programme will total
$ 466 million, and to this will be added a permanent addition
of $ 10 million to New South Wales' share of the programme, and
special temporary allocations of $ 3 million for Queensland
and $ 9 million for Western Australia.
Smaller authorities programme
The practice of recent years of not imposing any
limit on the over-all amount to be borrowed by smaller
authorities will be continued. The limit on borrowings by
individual authorities in this category will be raised from
$ 300,000 to S400,000, thereby adding an amount conservatively
estimated at 310 million to their total borrowings in 1972-73.
Non-Metronolitan Unemplo rment Relief Grants
The amount being provided by the Commonwealth for the
relief of non-metropolitan unemployment will be increased from
million to 6 million monthly. This increase will operate to
the end of 1972, before which date the scheme will again be reviewed.
Details of these decisions, and the distribution of the
various amounts between the States, are shown in the tables attached.
SUIMIARY OF AIDDITIONAL FINANTCE FOR STATES, 1972-73*
S million
( i)( 2)( 3)
Additional Revenue Grants Increase in
Works and
Housing Programmes Total ( 11) and ( 2) Increase in
" Larger"
Authorities Pro gramnme s
New South Wales
Victoria Queensland South Australia
Western Australia
Tasmania Total 44.3 33.1 17.6 12.0 15.9 5.1
128.0 28.6 23.0 11.4 12.3 8.4 6.3
90.0 72.9 56.1 29.0 24.3 24 .3
11.4
218.0 21.4 11.6 7.5 1.7 7.7
-0.7
49.2
* It must be emphasised that the revenue grants figures shown are not comparable with those shown
for the increases in the borrowing programmes. The former represent the additional assistance
to be granted in 1972-73 over and above that which would be paid under existing legislation,
whereas the latter represent increases over last year's levels. ( 4) Total 94.3
67.7 36.5 26.0 32.0 10.7
267.2
1. Revenue Grants to States in 1972-73
million)
Estimated
Financial Assistance
Grants under
existing legislation
479.1 362.1 252.1 169.1 182.5 75.9
1,518.8 $ 124.5 million
addition to
F. A. Gs
33.1 17.6 12.0 12.4 5.1
124.5 Temporary
revenue assistance
3.5 3.5
2. Loan Council Borrowing Programmes
million)
Works and Housing
New South Wales
Victoria Queer. sland
South Australia
Western Australia
Tasmania Grant 79.0
63.4 51.4 34.0
23.2 17.4
248.5
Authorities borrowing Borrowing 25533.3 187.1 92.8
100.6 68.5 Total 312.53
250.5 124.2 134.6 91.7 Larger authorit
159.5 91.7 25.7 32.8
51.2 68.6 14.4
753.5 982.0 488.0
over $ 400,000 individually during ; ies Total
478.2 410.0 215.9 158.3 124.5 85.0
1,470.0
the year
3. Local Authority Programme
The limit on individual borrowings by the smaller authorities
was raised from $ 300,000 to $ 400,000. It is conservatively estimated
that, as a result of this increase, the smaller authorities might borrow
some $ 10 million in excess of the amount they might otherwise have
raised. The practice of imposing no over-all limit on borrowings by these
authorities has been continued.
4. Non-metropolitan UnemDloyment Relief Grants
( 000ooo)
New South Wales
Victoria Queensland South Australia
Western Australia
Tasmania Total New monthly grant
2,510 1,350 1,200 360
450 330
6,000
N. S. W.
Tas. Total 523.4 395.2 269.7 181 .1
198.4 79.0
1,646.8