PRIME MINISTER
FOR PRESS 24 SEPTEM4BER, 1978
ELECTORATE TALK
The announcement of a significant oil find in the Bass
Strait reminds us our country's great natural wealth.
It reminds us that in a very true sense we are a lucky country,
endowed with rich and abundant mineral resources required
by countries throughout the world.
When the Coalition Government was first elected, one objective
was perfectly clear we had to reverse Labor's policies
that had stifled mineral exploration. We had to restore the
mineral industry to its former role and to set about
re-establishing Australia's credibility as a sound and safe
place for investors. Our policies are succeeding.
We nave to look to the industry itself to energetically
seek out opportunities, seek out customers, marshall the
necessary capital and then carry out development.
In Australia there are now a number of significant resource
investment indertakings involving a total cost of about
$ 2 billion now under construction. Some of the major works
are the Gregory and Norwich Park coal projects, expansion
by the Western Australian iron ore producers and further
development of the Bass Strait petroleum reserves.
New capital expenditure in mining is expected to be in excess
of $ 800 million in 1977/ 78, an increase of 70 percent over
the previous year, indicating the success of our policies.
The North West Shelf Gas Project joint. ventures are carrying
out their preliminary design. work. The Gove Partners have
announced their decision to carry out a feasibility study for
the construction of an aluminiumL smelter. An aluminium smelter
at Gladstone is proposed and new bauxite/ alumina projects are
under consideration for south west Western Australia..
Coal continues to provide evidence of its bright future.
Companies have been announcing substantial progress towards
the negotiation of long term, sales contracts for steaming
coal with buyers in Japan, South Korea and Israel. Contracts
have been announced with Japan, Brazil and South Korea to cover
the initial planned production from the Gregory Project.
It's those kinds of investment decisions that demonstrate a
tangible faith and confidence in Australia's future. ./ 2
-2-
The mining industry is a great national enterprise. It
provides and will continue to provide wealth,
expansion and jobs for Australians. It will provide jobs
not only for its own industry, but in many other areas which
supply goods and services to the mining industry. But for
private enterprise to take risks and to take the opportunities
the Government also had to restore the basic soundness of
our economy. We had to make our industries more competitive
on world markets. Simply put, it meant an all-out attack
on inflation.
Without control of inflation and without the Government
being seen to act decisively and successfully in the fight
against inflation there could be no basis whatsoever for
confidence among investors and those looking to Australia.
our inflation rate today is now below that of most of our
major trading partners, and it is still falling. The gross
imbalances in the economy that occurred during the Labor
years are slowly being unravelled and corrected. Confidence is
returning within Australia, for we only have to look at the
national share market, where many tens of thousands of
Australians are demonstrating their faith in the future of
their country through the investment of their hard-earned savings.
Companies and investors around the world are also looking again
at Australia with renewed confidence. It is a fact that
Australia is now being compared with West Germany as one other
country where secure and long term investment can take place
in the knowledge that governments are pursuing the right
economic policies.
The decade of the 1980' s will be an exciting one for Australia.
Our country will reap the rewards of a sound economic base and
begin to realise fully our great potential.
To the forefront of this new era in growth and prosperity will
be Australia's great mining industries. In partnership on
a fair sharing basis between local and overseas investors
we will be able to take advantage of our great natural wealth.
Our minerals will be more competitive on world markets because
we will have an economy that is sound, with low inflation,
low interest rates, and a proper balance in all arms of
economic policy.
As a Prime Minister, I share the confidence that many...
thousands of Australian investors are now showing. I share
the increasing confidence of investors and governments around
the world in the performance of this Government.
We have much to be proud of in Australia. Much to look forward
to. Working together with a common purpose, a sense of
cohesion we can 1. fulfill our country's great promise.
0 000---