FOR MEDIA 19 JULY 1982
STATEMENT ON ALCOA, PORTLAND
Alcoa's announcement that,' it intends to defer letting new
contracts and review existing contracts for work on its
aluminium smelter project in Portland, in light of its
decision to defer its planned completion date until about
mid-1985, is a matter of great regret.
The decision will have an impact on economic conditions
throughout Victoria, but it will be a matter of particular
concern to people and businesses in the Portland area.
I know the hardship that will be faced by the people of
Portland. The full resources of the Commonwealth
Department3 of Social Security and Employment and
Industrial Relations will be available to give what
assistance they can. And I shall be visiting Portland
on Monday next, July 26.
Alcoa's decision is a clear reflection of the harsh
reality of the current world economic situation. Alcoa
obviously had not expected that commuodity prices and
world demand would fall in the way that they have.
For years we have all received repeated predictions that
sustained recovery in the major world economies was
imminent: but that recovery has always failed to
materialise. Today it is hard to find anyone who is
prepared to predict when real and sustained recovery
will begin.
The task that we all face in the period ahead is to do
all we can to minimise the impact of world recession on
the Australian economy for as long as it lasts. We
must also be prepared to take full advantage of recovery
when it does eventually come.
The Comamonwealth Government has already' introduced a
number of initiatives to further these objectives.
Our proposal to free electricity authorities from Loan
Council borrowing controls, which was accepted at the
June meetings, has given to the States and their
electricity authorities including the S. E. C. V.
freedom and responsibility for meeting the power needs
of all consumers, including those of resource developers.
One of the reasons why we proposed this new arrangement
was to ensure that there would be no impediment to
electricit~ y authorities in meeting the needs of projects
that had already been attracted to the various States.
Further, the new package of industry assistance measures
announced by the Commonwealth today has improved the
climate for investment by giving to industry improved
depreciation allowances, and a foundation on which to
base long-term planning. We now look to business to
respond positively to those measures; and we look to
labour by moderating its demands for higher wages and
shorter hours to help those decisions bear fruit in
the form of more jobs and increasing real incomes.
Alcoa's decision gives added weight to the need for all
Australians to work together to improve our competitiveness,
our industrial relations, and our reliability as a supplier.