FOR '-EDIA SUNDAY 1 JUNE 1980
ELECTORATE TALK
Over the past few years Australian farmers have experienced
the highs and lows of life on the land.
There have been both bountiful seasons and the curse of drought.
Cattle were shot as virtually worthless only a few years ago.
Now, livestock are much sought after once again.
The wool corporation emptied its warehouses as wool again
became the gblden fleece.
In fact, the recovery of our great rural industries from the
deep depression of the mid-1970s has been quite remarkable.
In the past two years, the value of rural production and exports
has increased by 60 per cent while real income per farm has more
than doubled to be 75 per cent higher than in the first few years
of the 1970s.
The whole nation has benefited.
And yet again Australian farmers have demonstrated their
traditional resilience and the rural sector has been central to
strong and balanced economic growth.
The fruits of our recovery can be seen in such diverse ways as
the revival of business in country towns, improved company returns
and tlhe renewed interest in agricultural training courses.
Nowlhere is the benefit to the nation more evident than in the
massive contribution to Australia's balance of payments of the
$ 3 billion increase in rural exports over the past two years.
As we enter a new decade, it is timely to remind ourselves of
the continuing importance of rural industries; to reflect on
the lessons of the 1970s; and to look at what the 1980s has in
store for Australian farmers.
At a time when mineral energy development attracts so much
attention and this is completely understandable it is not
often appreciated that this year wheat, and not coal, is
Australia's largest single export earner and that the rural
sector contributes 43. per cent of Australia's export earnings.
/-/ gQt9RY I-ILE
I am sure that the inid-1970s will never be forgotten by country
people. In the devastating year of 1974-75 aElone, a year of reasonable
seasonal conditions, unit farm costs rose by 30 per cent and
real-income earnings feiY . by over 40 per cent.
The strong recovery from those depths is due not only to reasonable
seasons but also to the influence of: a favourable economic
environment achieved through sound and consistent economic
management. Australia's inflation rate is now significantly below the OECD
average. As a result, our competitive position in world markets
is better than it has been for many years.
One lesson we all learned from the ihid-1970s was that no sector
of th~ e economy is more devastated by runaway inflation t-han the
export-orientated rural sector. For as costs rise, our capacity
to compete overseas is severely reduced.
During the past five years, Australia's primary producers have
responded to the Government's initiatives designed to create a
more stable economic environment. The creation of the Primary
Industry Bank, the Income Equalisation Scheme, and the Rural
Adjustment Scheme have all had beneficial effects cn the viability
of rural industries.
To se--ure continuing improvement in the viability of the rural.
sector, the Government has also:
significantly modified the tax averaging provisions.
introduced in full the Fuel Price Equalisation Scheme
increased the floor price for wool from 250 cents in 1975-76
to 318 cents per kilo.
abolished federal death duties
reduced fluctuations in returns to wheat growers and
facilitated.. earlier payments for wheat deliveries
selectively underwritten prescribed dairy products
provided special depreciation provisions for buildings
for the storage of hay, grain and fodder
and recently introduced new ' taxation concessions to assist
in increased water storage.
Under these initiatives, wheat plantings have increased by
per cent over the past two years. The value of wool production
has increased by 38 per cent in the same period. The dairy
industry has undergone one of the most successful adjustments
in Australian agricultural history. The sugar industry is at
last enjoying better prices, and it has the security of long-term
contracts for a large part of its exports. Smaller industries
such as oil seeds, cotton and rice are growing strongly.
Livestock herds are being re-built.
Of course the best news for producers and for all ralians
in the past week has been the cjoo3 rain over much cf the rural
area. The outlook for the 1980-81 season is now b-ie_ than it
was a few weeks ago when drought was tightening its v: ic.
I am advised that the 1980 wheat crop is now off to an encouraging
start and if adequate follow-up rains occur another goo harvest
is likely. Pasture growth in many areas will be dependent on
temperatures from now on, but hopefully hand-feeding should become
less prevalent. Surface water supplies have iirproved and herd
re-building is likely to gather momentum. As markets for rural
produce remain strong, the rural. economy looks set for anot. her
reasonable year. No-one know better than the farmer that in the
good times we must consolidate our advantages and build on our
opportunities. So it must be with Australia.
We cannot allow the significant successes of the last five years
to be eroded by the faulty economic management and defective
policies which dealt such a body blow to the rural sector in the
mid 1970s.
We enter the 1980s with the kind of stability and international
competitiveness that should act as an incentive to all of us.
In the years-ahead our geographic location will be one of our
great advantages. We are a net food and energy exporter in a
region with expanding demand for Australian goods and services of
all kinds.
This provides for Australian primary producers as it does for
all others a challenging role. It is a role which the Government
is determined will be fully and productively played out.
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