EMBARGO: CHECK AGAINST DELIVERY BROADCAST: 3HA May 2
.3YB May 6
J A1J1r( LIA
PRIME MINISTER
FOR PRESS May 2, 1976
ELECTORAL TALK
The interests of all Australians will be best served only
if our rural communities are sound and thriving.
Clearly, our national social and economic goals will be
P'lso best advanced if our primary producers are working in
a climate of stability and confidence.
This week the Government received some good news about the
Australian beef industry.
After two long years of low prices, instability and sluggish
demand, the cattle industry can now look confidently ahead
to a period of strengthening prices and increased demand.
As announced in the Parliament this week, the Government
has negotiated with the United States for a starting quota
of almost 8,000 tons more than we had in the previous year.
With the shortfall we will receive during the year the quota
will almost certainly exceed last year.
The Japanese have also announced that they will accept
4S, 000 tons in the current six months. This compares with the
40,000 tons they took for the whole of 1975. The
Government believes that the quota for the other half of
the year will be even larger.
The Japanese decision to announce quotas on. a six month basis
is good news for the industry.
There is little doubt that six monthly quotas will add a
stability and predictability to the trade which has been
missing since Japan reopened' its market to imports.-Since the
market was reopened in June last year quota announcements
were irregular and created planning difficulties for producers
and exporters. That should now be overcome.
Further, the Canadian Government have also removed the
global quotas they had on meat imports. This should allow
Australia to greatly exceed the 28,000 tons we sold to them
last year.
The Soviet Union has also shown enrco'raging interest in
making significant purchases. In fact, Lt has'recently
brought 10,000 tons from New Zealand. We expect success
in this area soon.
There are maay smaller ma-. Lkets for beef particularly in
countries such as Sweden, Hong Kong, Taiwan and the Middle
East which are also indicating greater interest in our
beef. On the debit side, the European Econo mic Community still
has a virtual embargo on imports. The Government, however,
will continue to vigorously seek access to that important
market. The figures released this week by the Bureau of Agricul. tural
Economics put the state of the beef export industry in perspective0.
The Bureau expects our export sales this year to top $ 507 million.
This is a 57 percent increase over-the $ 323 million figure
for last year.
Suimming up, the beef industry in Australia can look to a
brighter future mainly because of the efforts of our exporters,
better market conditions and successful Government negotiation.
The dairy industry, however, is still reeling from the highly
unsympathetic attitude of the former Labor Government.
The industry's grave problems which are particularly
critical in Victoria have been made much worse by
domestic production cost inflation. This inflation has reduced
the rr'Pa~ ginal profitability of many thousands of Australian
dairy, farmers.
This cost inflation, together with the protracted slump in the
world market for skim milk powder and casein has created
severe liquidity problems for the dairy industry.
In an effort to overcome this particular situation, I with
my colleague, Ian Sinclair, have held talks with the State
Governments about a scheme to put a floor into the market
for exported dairy products.
Tte Federal Government has offered each State the underwriting
guarantee of $ 300 per tonne for skim milk powder. The
Federal Government will contribute two thirds of this amount.
Additionally, my Government will make available $ 2 million
in cooperation with the States for dairy adjustment under
rural reconstruction. This amount is on top of the $ 1. S million
promised by the former administration for dairy adjustment.
I believe there is a strong and continuing need for rural
reconstruction. The Government intends to make sure that dairy farmers caught
in the income squeeze are entitled to all the social welfare
benefits to which every other Australian is entitled.
There are significant pockets in the dairy industry
where the average family income is way below the average
income in Australia.
The Henderson report on poverty indicated significant
areas of rural poverty. The Government has a commitment
to attack poverty in the cities it has an equal commitment
to . attack poverty where it exists in the countryside.
It is clear that the dairy industry needs specialist assistance.
To this end the Government has commissioned onc of Australia's,
and the wvorld's,, most distinguished agricultural economists
to report as soon as possible on future policy options for*
the dairy industry.
The economist is Sir John Crawford, the former head of the
Department of Trade and the Department of Primary Industry,
who is widely recognised for : his studies on the rural economy.
We have asked Sir John to report to us as an Industries
Assistance Coip. missioner on what additional steps can be
taken to relieve the industry's problems.
Finally, I want to make it clear that the Government sees
both city and country dwellers as Australians with equal
rights and equal opportunities.
We. have been concerned with the divisions between the city
and country provoked over the three years of Labor rule.
This led to uncertainty amongst primary producers and
contributed to the rural economic recessions.
This Government will not allow that to happen again.
000000000O