PRIME MINISTER
FOR P?^ 5S 2 JULY 1978
ELECTORATE TALK
For many years, beef producers have helped ease the burden
of inflation f: r people throughout Australia.
While incomes generally have risen in money terms because of
inflation, re-turns to meat producers and to many other primary
producers have been depressed.
Many beef fa= ers have been driven off the land, while others
have struggled to cover costs.
The recent sa=. e of beef to the United States to meet a special
requirement was heartening and welcome news for the grower.
It has heled prices in the saleyards.
Although saleyard prices recently have improved, it has not yet
been sufficie= t to help a great number of cattlemen overcome
the economic difficulties of the past four or five years.
For some t--e now, the Government has been concerned about
returns to beef producers. While cattlemen have been receiving
poor average prices at the saleyard, abattoirs and processors
have been accused of making inordinate profits.
Because of this, the Government has announced a wide ranging
examination into beef marketing and processing charges and
margins. The inquiry will be conducted by the Prices
Justification Tribunal, and will be one of the largest ever
undertaken by that body.
It will closely examine the whole cost structure of the
industry literally from the farm gate to the dinner plate.
This inquiry has been under active consideration for some time.
Both the Minister for Primary Industry and myself, prior
to the last election, referred to the Government's intention
to hold such an inquiry. We were very well aware of dissatisfaction
among cattlemen throughout Australia with poor returns for their
stock. The Govermmen.-intends by this incuiry to establish precisely
how the costs and profits in the beef industry are distributed.
The infor. ati: n will assist the Government and the industry
to formulate e= ffective future policies for the livestock and
meat indust-== s. / 2
in Apr* this year, I wrote to all State Premiers seeking their
e inquiry. The last State, New South Wales,
res. cl-agreeing that State and Municipal abattoirs
snIoUld-be the scope of the inquiry.
While i be conducted by the its hearings
will nct be p-However, the final report will be made
public by te Z-. er7=_ ent.
The Governe. fe, t the P. J. T. Act was not sufficiently wide
to e to conduct the all-embracing inquiry
considered neze= sary. For that reason we sought the assistance
of each State and decided on an informal hearing.
Specifically, the P. J. T. will examine the charges and margins
that apply to beef marketing and processing including livestock
selling companies, abattoirs, wholesalers and retailers.
7t will reDc_-on the basis on which these charges and margins
are established. Here it will have special regard to the costs
of resources required to process and market cattle and beef,
and to the : e-r= ns from beef exports.
The also report on the significance of these charges
and margi-ns determining retail prices.
As Prime Manzster and Member of Parliament for a rural electorate,
I am very ccrnscious of the widespread community interest in
this whole -estion of beef prices.
Producers and the beef industry generally are rightly concerned
about poor returns. The housewife is also concerned that she
should not be paying more than what is necessary.
I am confident this wide ranging examination will lead not only
to assured and stable returns for cattlemen, but will also mean
a better deal for housewives who have to balance the family
budget.
Another announcement of great interest to people in rural areas
was made last week. The Government has decided to raise the
floor price for wool to the whole clip average of 298 cents
per kg. clear for the 1978/ 79 season.
The floor price scheme will be continued in 1979/ 80 at not less
than 298 cents.
The Goverm" ernt has raised the level of the floor price on a
number of occasions. It had raised it to 284 cents per kg.
clear on the whole clip average when the Australian dollar was
devalued in : vamber 1976. We have maintained it at that level
throughout-1977/ 78 season.
The increase e Government has now authorised for this coming
season rep-s-t a rise of 5 percent which the market can
well suppCr-. / 3
9 3.
The c-rrent market price indicator stands at 310 cents, and
furt'-r i: rz-ve-enz in the market is forecast for 1978/ 79.
Price relativi--ie for the various wool types for the purpose
of the reserve zrie support around the average will be
announced by a -Z-tralian Wool Corporation.
This decisiozn :--lills the Government's commitment to make sure
the floor price scheme continues well ahead in a way that provides
stability and : cntinuity for the industry.
The woed rare--ing operation is a great success story for the
Corporation ai-for all producers. oOo--