PRIME MINISTER'S PRESS CONFERENCE
PARLIAMENT HOUSE, CANBERRA
TUESDAY, 26 AUGUST 1975
PRIME MINISTER: I thought I might say a few things about the
Budget at the outset. Tonight the Leader of the Opposition will
have an opportunity to be precise in his criticisms of the Budget.
He has made some general criticisms thatit'sa bad Budget and so
on. He has also lamented many of the changes'brought about,
particularly in the tax system. This seems to strike home very
grievously to him, but anyrate he will be able to be precise. tonight,
he will be expected to be precise.
There is another thing however that I would like to say
about the Opposition's approach to the Budget in general. Its been
entirely destructive criticismt there have been no proposals
from the Opposition, what they would have done if they were
bringing down a budget in the present domestic or international
situation; what deficit they would have had; what bounties or
subsidies or remissions or concessions they would have made;
what expenditures they would have initiated, what expenditures
they would have retrenched. It is I believe a damaging thing
in general that criticism should be'entirely negative this way.
It just doesn't help business confidence, which is quite necessary
to restore health to our economy, just to make generalised cries
of doom and criticism. At least an alternative government ought
to be precise, it should be constructive at least to that extent.
Now I should say something about one of the features
of this Budget which is quite epoch-making. It represents the
biggest change in the taxation system which has ever been made
in Aus-tralia. The present tax scales, of course, were introduced
in 1954. Particularly the general approach of the
taxation system as a result of this Budget's proposals will be
very much more just. The people who will benefit from the tax
changes are, overwhelmingly. those who have dependents~ and those
who worki. harder, or longer will not be deterred by the very
high rate of taxation which as applied to marginal incomes in
their bracketc. This will have beneficial effect in industrial
relations. People work be wanting to ask for too much from their
employers or from the Arbitration system so as tb'. overcome the
additional tax which they will have to pay. But there will be
a very great number of Australians who will pay less tax airi
there will be in fact, the number of taxpayers will be halt a
million less than is at presentthe case. A lot of people won't
have to fill in tax forms at all. And for everyone the tax forms
will be simpler So the taxation system,. particularly in substituting
rebates for concessions is a very equitable thing and very much
more efficient. Now there is an addition or two of course. The
concessions which the Budget has made for companies, in
particular the rate of company tax will be lower than it has
been for very many years and the double rates of depreciation,
which were to cut out at the end of last June, wiIl be continued
indefinitely. So, while no Budget, of course, would please
everyone, no Budget would have applied the prescriptions of all
the expertswin fact the experts don't agree among themselves,...
but this Budget does recognise/ that there are basic irreconcilables
and accept
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but it makes the most of that contraint by a balanced and
imaginative combination of measures.
The next thing I wanted to say to you was to correct
quite a spate of misrepresentations that some. of your
newspapers have made. I want to make it quite plain that
none of these misrepresentations have been signed by any of
you or any of your colleagues. They seem to have come from
the top of the management in each case. I give three
instances: One was the Mirror last Wednesday in its editorial.
It responded to the Treasurer, Bill Hayden's request
that critics should be specific. And this comment was made:
" We will be specific, Uthe editor says " While we don't question
the( eventual need for an A. B. C. network of stereo FM
stations, is it really necessary for the Government to spend
a massive $ 132 million on it in this economically ailing year?"
Now the sum of $ 132 million is the sum total in the Budget
for every activity of the ABC. The amount which will be
spent on stereo FM stations: is $ 616,000 and there will be also
be $ 254,000 for the PMG. So it is rather an exaggeration.
That is it willbe$ 870,000 will be spent this financial year,
not $ 132 million. Now the next one is a relatively simpler misrepresentation.
I noticed on Friday the Melbourne Truth said: " The Prime Minister
Mr Whitlam, had a face-to-face showdown with his stormy Minister
for Minerals and Energy, Mr Rex Connor, in his office at Parliament
House yesterday." Then it says: " The Deputy Prime Minister,
Mr Crean, the Treasurer, Mr Hayden, and the Senate Leader, Senator
Wriedt, were present with Mr Whitlam during yesterdayt meeting.
Then on the basis of that story, presumably, last Friday's
Mirror said: " The Prime Minister, Mr Whitlam, had a face-to-face
showdown with his Minister for Minerals and Energy, Mr Connor,
at Parliament House, it was reported in Melbourne today." And
that was from the Mirror's Melbourne office.
Now in fact Mr Connor wasn't in my office at any time
last Thursday. Senator Wriedt wasn't in my office at any time
last Thursday. I don't recall having spoken to Senator Wriedt at
any time last Thursday or having written to him. And I might
easily have said hello to Rex Connor at Question Time on Tltursday
ut I didn't write to him or speak to him anywhere on Thursday
at all. The story is a complete fabrication.
And the third thing is the" Australian On Saturday it
lists a great number of projects for Chanceries and residences
in other countries which the Government is includingamong its
$ 53 million for those purposes!' And on Monday there was an
editorial in the Australian on the same subject.
Now it all flowed, I take it from an answer which I
gave as representing the Foreign Minister, Senator Willesee last
Thursday on these projects. It happens that all the expensive ones
all the big ones, were approved by our predecessors.
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Now to be quite precise let me go through them. The cost
of the Bangkok Chancery and Residence will be $ 5.8 million, approved
by our predecessors. The renovat~ on] s and-electrical w7orksj'at:
Australia House in London will be $ 477,400, approved by our
predecessors. The Chancery and accommodation in Paris will be
$ 18 and a half million, approved by our predecessors. The Chancery
in Port Moresby will be $ 2 million, approved by our predecessors.
The Chancery in Singapore will be $ 4.4 million, approved by our
predecessors. And the extensions to the Chancery in Washington
will be $ 4.6 million, approved by our predecetsors. And lastly
the construction of the Chancery in Kuala Lumpur will be $ 4.2
million approved by our predecessors.
Now admittedly the question didn't ask when these projects
were approved. It was assumed that we had approved them all.
This year as anybody can see from the Budget we will be spending
$ 3 million on overseas construction for Chanceries and Residences
for our High Commissioners and our Ambassadors. But the whole
of that amount that I read, that is all the big amounts were
approved by our predecessors.
It grieves me very much that Mr Peacock should have been
reported in Saturday's Australian as saying: " Mr Whitlam's concept
of open Government doesn't seem to extend to Opposition front-benchers.
I haven't had a chance to see the figures yet but when I do so I
may make some comment on them." That's the Australian of Saturday.
Presumably Mr Peacock's comments were made on Friday. He got the
answer on Thursday afternoon, b ecause no questions are printed
in Hansard unless they are r , eceived by 5.30 in the afternoon. ' But
in all events the editorial and the original story w~ ere grossly
misplaced. / 4
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QUESTION: On the question of Timor. In your Statement
about Timor today you mentioned the Government welcoming the
outcome of talks in Dili and Macao.
PRIME MINISTER: I will say no more on the subject of Timor.
I said that I would be reporting to the Parliament probably
if there were other developments. I'll leave it at that.
QUESTION: Well can I ask you about...?
PRIME MINISTER: No, no I will not elaborate on the statement
I made.
QUESTION: Well there is a bit of ambiguity about
PRIME MINISTER: No I don't believe so. Please I will not
elaborate on the statement.
QUESTION: No funds were allocated in the Budget for
the Westwood extension of the Transcontinental Pipeline for
the Northwest shelf. Is this project defunct or only
postponed? And may I also enquire why no Chairman has been
appointed to the Pipeline Authority as required by Section
61( a) of the Pipeline Authority Act which was proclaimed more
than 2 years ago?
PRIME MINISTER: I don't know.
QUESTION: Prime Minister, the Gover-nment's obviously very
satisfied with the Budget. Do you think that it will show its
sati~ sfaction by ensuring that the Secretary of the Treasury,
Sir Frederick Wheeler, has a long tenure of office?
PRIME MINISTER: That will depend on his health and his conduct.
QUESTION: What effect will the Government's entry into the
manufacture of car engines, in Adelaide, have on the private
sector? Referring to G. M. H. and Ford who claim that this will
lead to unemployment in the industry?
PRIME MINISTER: I don't believe that the public is so readily
moved by G. M. H. and Ford as they were last year. I trust that
the Party isn't so readily moved by G. M. H. and Ford as it was at
the end of last year. The proposal that the Government h'as made
is that it should participate with the two Japanese col.-ipanies,
Nissan and Toyota, and Chrysler, in setting up a four cylinder
engine plant in Chrysler's premises in Adelaide Each party
to take a quarter share in that enterprise. The overall interest
that the Government has is that Australians should have a
choice of Australian motorcars which is more consonant with what
the consumers want. There can be no doubt that Australians would
like more four cylinder motorcars. They're more manouverable,
they're more economical, they are cleaner, and the difficulty
up until now has been that if you wanted four cylinder motorcars
they usually had to be imported and usually imported from Japan.
So accordingly we are wanting to encourage the Japanese manufacturers
to make the engine, which is the biggest component"' getting the
Australian content, made in Australia. Australians shouldn't
be forced if they want an Australian motorcar to choose between / 2
those that the American subsidiaries have hitherto compelled
them to make.
QUESTION: Does the Government intend to introduce a Supply Bill
before the passage of the Budget? And if so could you say for
-what purposesthe money will be used?
PRIME MINISTER: No decision has been made on this.
QUESTION: Are you planning a trip abroad for December/ January?
And if so what stage have you reached regarding details?
PRIME MINISTER: No stage has been reached in any such plan.
Quite obviously if I went away it would be over Christmas. I
never miss any of the Parliamentary Session. No arrangements
have been made for any overseas visit.
QUESTION: I believe it was Sunday, you intimated that the
Government hadn't quite reached full Open Government. How
long do you expect this to take and under what circumstances
would we arrive at a situation under which we could have Open
Government? PRIME MINISTER: I haven't got the speech that I made on Sunday
with me. I don't accept your summary of it. I did make a passing
reference to the very glib questions and comments that so many
of you put, that you-Lre entitled to know every item and detail
of the decision-making process. I pointed out that Open Government
means rather the fact that the public should know the options which
the-decision-makers have, and that is something which the present
Government has implemented very greatly indeed. The public knows
to an exceptional extent, completely unprecedented extent, the
advice which the Government receive I've been asked a question
already about motorcars. The reports of the Industries Assistance
Commission are published much more promptly than ever was the
case with the old Tariff Board. But you go through the whole
range of initiatives that my Government has taken and you will
see that most of them have been based on reports-compiled by
experts who' ye sought views and the experts~ views have been
published. That is people now know what the options are. There
is Open Government, particularly to that extent. The Government
mightn't necessarily accept the advice that it receives but the
public knows what the advice is. 1
QUESTION: In the event of any of our nearneighbours finding
themselves in the unfortunate circumstances of being involved in
1. civil war, will Australia consider providing humanitarian aid
to them?
PRIME MINISTER: Yes.
QUESTION: Will it do so in terms of Portuguese East. Timor?
PRIME MINISTER: I'm not elaborating on the statement. ./ 3
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QUESTION: Prime Minister, why won't you answer questions in
relation to what's going on up there?
PRIME MINISTER: I've made a statement in the Parliament,
3 hours ago, and I'm not going to elaborate on that statement.
The situation is quite sensitive and I'm not going to respond
to particular slants that you might want to give it.
QUESTION: In April last year, you said that the Government
would not extend agreements on foreign bases in Australia.
Last Wednesday and again today you indicated that's changed,
in the case of Pine Gapand some other bases. Can you tell us
when the Government changed its mind and why?
PRIME MINISTER: The position hasn't changed. I gave an answer
to a written question, a question on notice on this matter,
last Thursday and the question stands.
QUESTION: It's different from your attitude in April last year.
PRIME MINISTER: No it's not.
QUESTION: Why has Australia dumped Papua New Guinea-if we are
to believe Mr Somare?
PRIME MINISTER: We haven't dumped Papua New Guinea. We are
in fact assisting Papua New Guinea to the extent of some hundreds
of millions of dollars every year. I promised early last year,
I think it was, that in the course of last financial year, this
and next, we would be contributing $ 500 million -to the P. N. G.
Budget and we shall be. That incidentally is completely apart
from any Defence expenditure.
QUESTION: What bases were you talking about in April last year
when you said that the Government would not extend agreements?
PRIME MINISTER: I haven't got, you're referring to a question
that I answered without notice, I think about the 3rd April last
year, wasn't that it? And I gave an answer last Thursday.
I think you're referring to some comments which you very easily
elicited from one of my colleagues who was never briefed on the
purposes. I have stated all along that these facilities are not
parts of any weapons system.
QUESTION: When can we expect some clarification of the Government's
joint venture with the Ranger Uranium parties../. for nearly a year?
Peko/ E. Z.
-PRIME MINISTER: Within the next couple of months I would expect.
I would hope less time than that.
QUESTION: Does the Government intend to press on with the
establishment of the Australian Government Insurance Corporation?
PRIME MINISTER: Yes, of course. There is a gap in the insurance
available to a very great number of Australians and furthermore
the insurance available to a great number of other Australians
is only available on terms which are too onerous. It'll be
remembered that in the-election campaign in May last year, I
stressed that the Australian Government Insurance Corporation / 11
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would be set up to meet, for instance, the situation which
was found to apply in Brisbane at the beginning of last year,
and in Ipswich. There were a very great number of people who
were not insured against the disasters which overwhelmed them.
It was not possible for them to get that insurance from any of
the normal companies or institutions. The only institution,
I think, from which you were able to get fl ' ood insurance on
reasonable terms, was the War Service Homes Insurance. -The
other point I made was that insurance has been available very
much more cheaply, not only from the War Service Homes Scheme,
but also from the Commonwealth Savings Bank Scheme. So the
Australian Government Insurance Corporation will give insurance
where none is available at the moment and furthermore it will
give insurance where it is at present available but on much more
reasonable terms. I point out that despite all the propaganda
that's been brought about the A. G. I. C. it wil. l have to pay its
way; it will be subject to all Federal and State legislation.
QUESTION: Are you considering using Mr Connor' s considerable
talents in another area?
PRIME MINISTER: I don't answer questions concerning the future
of my colleagues. I never have and I won't this time.
QUESTION: The Adelaide family of Dr -Grady, a Geologist, somewhere
in Timor. has * expressed concern about his safety. one report says that
he is now in the hands of Fretilin supporters. What efforts, if
any,. are being made to find out about this man?
PRIME MINISTER: I don't remember all the details. Every
Australian known to be in Timor was contacted with the offer
to be taken out, and I'm told that the only ones who didn't
come out declined to do so of their own free will. There was
a plane went in and got some other people out who had previously
declined but these ones were able to be contacted after they
had second thoughts. NoI forget the names.
QUESTION: The Chairmanship of the Film, Radio and Television
Board of the Australia Council has been vacant since the beginning
of July and is apparently causing some problems in the operation
of that Board. I was wondering, is any announcement imminent of a.
replacement Chairman.
PRIME MINISTER: Yes it is.
QUESTION: You can't say now who it will be?
PRIME MINISTER: No I will put it in the whole context. I
approved it all last week, I think.
QUESTION: It's been reported that a large number of the evacuees
who arrived in Darwin on the Lloyd Bakke want to stay in Australia.
What is the Government's attitude
PRIME MINISTER: If there are sponsors, if there are relatives
who have sponsors here well they're staying on the usual condition.
QUESTION: Could you tell us when the Government decided that
it would renew the Pine Gap and also Northwest Cape and who
made the decision Agreement
PRIME MINISTER: The question to renew, it doesn't take that
form. The facility continues unless steps are taken to end it.
The situation to end it can't arise until the 9th December next
that's the earliest date at which notice, a years notice, could
be given to end the agreement. No such notice will be given,
as I stated last Thursday.
QUESTION: The Government's Uranium Policy Statement of the
31 October 1974 said that the Government would consider
separately the question of some earlier return for the shareholders
of Queensland mines, Naranda and Pancontinental, they
have had a rather hard trot from the Government's Uranium Policy.
Has this question
PRIME MINISTER: Wait a bit, wait a bit. You know what was said
about Queensland Mines, by Mr Justice E. A. Woodward. You know
that don't you?
ANSWER: Yes.
PRIME MINISTER: He recoimmended that no uranium lease should be
granted to Queensland Mines. We accepted his recommendation.
QUESTION: We've still got N~ anda and Pancontinental Sir.
PRIMJE MINSITER: I forget the details there.
QUESTION: But has the Government considered some earlier return
PRIME MINISTER: I told you that this will be considered. I
think I said within two months, I hoped earlier. And, of course,
I would expect there will be a statement made then. I forget the
details, but you mention Queensland Mines, you sought to cast
the Government in a wrong light. The Queensland Mines was dealt
with by the Rae Committee arnd was dealt: with by Mr Justice
E. A. Woodward. The Government agrees with what they found.
QUESTION: You have no doubt noted Mr Somare' s statementg that
he might perhaps go elsewhere because of Australia' s reluiIctance
to give it more money. Does that concern you and have ycu
spoken to Mr Somare since he made those statements?
PRIME MINISTER: It doesn't concern me. I haven't spoken to
Mr Somare. I have written to him since we had a discussion on
Monday week. But this question was dealt with in my Second
Reading speech on the Papua New Guinea Independence Bill and
the related legislation last Wednesday. Papua New Guinea will
be independent on the 16th of next month. It is entitled, it
is welcome to receive assistance from any country in the world.
It would be compeltely inappropriate for us to look as if we
resented that. There are other countries which are assisting
P. N. G. as it is. There are some international financial
institutions; there is New Zealand; and there are one or two
other countries as well. It is perfectly natural for Papua
9
New Guinea to get assistance wherever it can. I notice there
was some suggestion that it was Mr Peacock made it
that the Russians had promised some assistance. That matter
was disposed of by Sir Maori Kiki, the P. N. G. Foreign Minister
and by the Soviet Ambassador.
QUESTION: On the night of the Budget, Mr Hawke said that he
agreed that those people making projections of half a million
unemployed by next year. Do you agree with Mr Hawke?
PRIME MINISTER: No.
QUESTION: What information do you have concerning this?
PRIME MINISTER: The information that the Treasurer has. He
was asked a question about this last Wednesday; he gave an
answer; his answer was correct. I support it.
QUESTION: Why is the Government refusing an export permit
for Utah, the development of Norwich Park Coal Mines, as it's
now going to get $ 6 a ton off it. And under what conditions
would the Government give an export permit to the Norwich
Park Coal Fields?
PRIME MINISTER: I think you'd better put that on notice. I-