No ] 9, q4 0: 2. PE~ RrH PRIME MINISTER OFFICE ( 09 25267 -01
PRIME MINISTER
FOR MEDIA 19 NOVEMBER 1984
SPEECH NOTES FOR THE PRIME MINISTER
PUBLIC RALLY COLLIE WESTERN AUSTRALIA
OVER THE NEXT FEW YEARS COLLIE WILL BE PLAYING A MUCH MORE
PROMINENT ROLE IN AUSTRALIA'S NATIONAL RECONSTRUCTION, TO
THE ENORMOUS ADVANTAGE OF THE PEOPLE OF THIS TOWN, THIS REGION,
THIS STATE AND AUSTRALIA.
ONE REMARKABLE FEATURE ABOUT THE STRONG AUSTRALIAN ECONOMIC
RECOVERY SINCE MID-1983 IS THAT THE AUSTRALIAN ECONOMY HAS
HAD RECORD GROWTH DESPITE SUBDUED PERFORMANCE FROM THE
RESOURCESSECTOR. WE HAVE HAD STRONG GROWTH IN RURAL PRODUCTION; IN PRIVATE
SERVICES, LED BY THE GOVERNMENT'S INNOVATIVE AND INTENSIVE
PROMOTION OF TOURISM; IN GOVERNMENT SERVICESj IN HOUSING
AND IN MANUFACTURING.
BUT SINCE THE COLLAPSE OF THE DISASTROUSLY MANAGED ORESOURCES
BOOM" OF THE LATE COALITION YEARS, INVESTMENT IN THE RESOURCES
SECTOR HAS BEEN DEPRESSED. THIS HAS DRAGGED DOWN THOSE PARTS
OF THE MANUFACTURING SECTOR WHICH SUPPLY RESOURCE PROJECTS,
MOST NOTABLY HEAVY ENGINEERING. a s/ 2.
19,4 07: 27 PERTH PRIME MINISTER OFFICE ( 09) 32'; 23672.2
2.
FROM NEXT YEAR, AUSTRALIAN ECONOMIC PERFORMANCE WILL BE BOOSTED
BY RESOURCE INVESTMENT RETURNING TO STRONG GROWTH.
OVER THE PAST THREE MONTHS, MAJOR RESOURCES DEVELOPMENTS TO THE
VALUE OF ABOUT $ 15 BILLION HAVE MOVED FROM BEING GOOD IDEAS TO
BEING CONSIDERED BY THEIR PRIVATE SPONSORS AS CERTAIN TO PROCEED
THROUGH 1985.
To PUT THIS FUGURE IN PERSPECTIVE TOTAL PRIVATE GROSS FIXED
CAPITAL EXPENDITURE ( INCLUDING ALL PRIVATE BUSINESS INVESTMENT AND
HOUSING) IN AUSTRALIA IN 1983-84 WAS $ 23 BILLION.
THIS NEW RESOURCE INVESTMENT WILL BE ON TOP CF INVESTMENT THAT IS
GROWING STRONGLY IN OTHER SECTORS OF THE ECONOMY. IT IS CLEAR FROM
RECENT SURVEYS OF INVESTMENT AND INVESTMENT EXPECTATIONS THAT THE
BUDGET ESTIMATE OF 5 PER CENT REAL GROWTH IN PRIVATE INVESTMENT
WILL BE EASILY EXCEEDED. THIS STRONG MOMENTUM OF GROWTH IN
NON-RESOURCE INVESTMENT THROUGH 198L4-85 WILL CONTINUE IN 1985-86.
SEVERAL OF THESE HAVE ALREADY BEEN THE SUBJECT OF RECENT PUBLIC
ANNOUNCEMENTS: DEVELOPMENT OF PREVIOUSLY DISCOVERED OIL FIELDS
IN BASS STRAIT WHICH HAVE BECOME COMMERCIALLY VIABLE UNDER THE
TAXATION POLICIES OF THIS GOVERNMENT; THE PORTLAND ALUMINIUM
SMELTER IN VICTORIA; AND OF SPECIAL INTEREST TO COLLIE AND THE
SOUTHWEST REGION OF WESTERN AUSTRALIA, THE SYNTHETIC RUTILE PLANT
AT CAPEL.
AND, ON. OTHER EXCITING PROJECTS RECENT NEWS HAS TURNED POSSIBILITIES
INTO PROJECTS WHICH THE RELEVANT INVESTORS CONSIDER TO BE CERTAIN,
Nuv 1I-',& 04 07: 28 PERTH PHTME MINISTER OFFICF ( O9. I32 j,. 367
3.
ON THE BASIS OF INFORMATION AVAILABLE TO THE GOVERNMENT, I
AM ABLE TO SAY THAT THREE ADDITIONAL MAJOR RESOURCE INVESTMENTS
IN WESTERN AUSTRALIA WHICH HAVE BEEN THE SUBJECT OF CONSIDERABLE
PUBLIC DISCUSSION HAVE JOINED THE LIST OF NEW PROJECTS WHICH
ARE CONSIDERED CERTAIN TO PROCEED THROUGH 1985.
WORK IS PROCEEDING AT* AN EXTRAORDINARILY RAPID RATE ON THE
COMPLETION OF THE FEASIBILITY STUDY FOR THE JOINT VENTURE
WITH CHINA ON THE DEVELOPMENT OF AN IRON ORE MINE AT CHANNAR
IN THE PILBARA, THE PARTIES ARE PROCEEDING ON THE BASIS
THAT WORK WILL COMMENCE IN THE SECOND QUARTER OF NEXT YEAR
ON THE CONSTRUCTION OF THE FIRST NEW IRON ORE MINE SINCE THE
FIRST PHASE OF PILBARA DEVELOPMENT ENDED IN THE EARLY 1970s.
THE NORTHWEST SHELF LNG SCHEME HAS BEEN THE SUBJECT OF TALK
AND SPECULATION FOR OVER A DECADE. I CAN NOW TELL YOU WITHOUT
EQUIVOCATION THAT THIS IMMENSE PROJECT'S TIME HA S COME. THIS
WAS CONFIRMED WHEN ARRANGEMENTS WERE COMPLETED A FEW DAYS AGO
FOR THE INTRODUCTION OF THE JAPANESE FIRMS MITSUI AND
MITSUBIS HI AS ONE SIXTH PARTNERS. FORMAL. AGREEMENT ON MAJOR
CLAUSES OF TtIE SALES AND PURCHASE ARRANGEMENTS ARE ON TARGET
FOR THE END OF THIS YEAR. PRE-DESIGN ACTIVITY IS PROCEEDING
TOWARDS THE COMMENCEMENT OF WORK DURING 1985, AFTER FINALISATION
OF FORMAL APPROVALS AND COMPLETION OF FINANCING ARRANGEMENTS@ Os s/ 4.
ov .19,4 07: 29 PERTH PRIME MI. ISTER OFFICE ( 09) 3252:-67 .04
14.
THE LNG PHASE AT NORTHWEST SHELF IS BY FAR THE LARGEST
PROJECT EVER TO HAVE BEEN UNDERTAKEN IN AUSTRALIA, ON
ITS OWN IT REPRESENTS A MAJOR INCREASE IN PRJlVATE INVESTMENT
AND TOTAL ECONOMIC ACTIVITY IN AUSTRALIA.
OF SPECIAL IMPORTANCE TO COLLIE AND THIS REGION, I AM
ALSO ABLE TO CONFIRM THAT THE CONSTRUCTION OF A PROJECT
THAT WILL INCLUDE A NEW POWER STATION AT COLLIE AND AN
ASSOCIATED ALUMINIUM SMELTER NEARBY WILL PROCEED IN 1985.
TOTAL INVESTMENT WILL EXCEED $ 1.2 BILLION OVER A SIX YEAR
PERIOD. TIlE FINAL FEASIBILITY STUDY FOR THIS DEVELOPMENT IS WELL
ADVANCED AND ALL OF THE PARTIES ASSOCIATED WITH THE PROJECT
ARE CONFIDENT THAT IT WILL GO AHEAD. THE FEDERAL GOVERNMENT
HAS BEEN MONITORING THE LEVEL OF AUSTRALIAN CONTROL AND
OWNERSHIP, AND IS SATISFIED THAT POTENTIAL AUSTRALIAN
PARTICIPANTS ARE BEING PROVIDED WITH OPPORTUNITIES FOR
MAXIMUM FEASIBLE AUSTRALIAN OWNERSHIP. 4 4/ 59
13v 19, 84 U : 9 pERTH E t11IS T R OFF IC E 0*
THE SMELTER WILL AT FIRST OPERATE ON SURPLUS POWER FROM THE
STATE GRID, SWITCHING TO SUPPLY FROM A NEW POWER STATION HERE
AT COLLIE WHEN IT BECOMES OPERATIONAL IN 1991. THE ONSITE
POWER STAT ION CONSTRUCTION WORKFORCE WILL PEAK AT ABOUT 800.
THIS WILL OCCUR AFTER THE SMELTER'S CONSTRUCTION HAS PEAKED,
ENSURING A HIGH AVERAGE LEVEL OF CONSTRUCTION EMPLOYMENT
BETWEEN THE TWO PARTS OF THE PROJECT FOR MO0RE THAN FIVE YEARS.
ABOUT 250 DIRECT POSITIONS WILL HE CREATED IN THE POWER STATION'S
CONTINUING OPERATIONS.
WHEN THE NEW, FULLY COAL-FIRED POWER STATION BECOMES OPERATIONAL,
THE PROJECT WILL ALSO GREATLY EXPAND PERMANENT EMPLOYMENT IN THE
COLLIE COALFIELDS. EMPLOYMENT OPPORTUNITIES IN THE COAL INDUSTRY
WILL, OF COURSE, EXPAND IN ADVANCE OF COAL PRODUCTION, THROUGH
INVESTMENT IN THE REMOVAL OF OVERBURDEN AND OTHERWISE IN
PREPARATORY EXPANSION OF CAPACITY.
APART FROM THIS DIRECT EMPLOYMENT, THERE WILL BE SUBSTANTIAL
EXPANSION OF GENERAL BUSINESS AND EMPLOYMENT ACTIVITY IN
COLLIE, BUNBURY AND THE SURROUNDING REGION. THERE WILL ALSO BE
SUBSTANTIAL OPPORTUNITIES WHICH THE WESTERN AUSTRALIAN
AND AUSTRALIAN GOVERNMENTS WILL MAXIMISE WITHIN COMMERCIALLY
REASONABLE LIMITS FOR SALE OF AUSTRALIAN ENGINEERING PRODUCTS
AND SERVICES. ABOUT ONE HALF OF TOTAL INVESTMENT EXPENDITURE IS
EXPECTED, TO BE ON WESTERN AUSTRALIAN WAGES, MATERIALS AND SERVICEr
AND ABOUT ONE FIFTH ON ENGINEERING AND OTHER GOODS AND SERVICES
FROM ELSEWHERE IN AuSTRALIA. 16
Nov 19,84 07: 20 PERTH rPIIEF MINISTER OFFICE ( J'j) 3; 252.3u*, P. 06
IDO NOT NEED TO SPELL OUT FOR YOU THE HUGE BENEFICIAL
IMPACT OF THIS DEVELOPMENT ON THE ECONOMY OF TH~ IS REGION.
IT WILL BE IN ADDITION To THE BENEFITS FROM THE SYNTHETIC
RUTILE PLANT TO BE ESTABLISHED NEARBY AT CAPEL, WHICH WILL
PROVIDE 200 NEW JOBS DURING THE CONSTRUCTION PHASE,
PERMANENT JOBS, AND SUBSTANTIAL DEMAND FOR ELECTRICITY AND
COLLIE COAL.
IT HAS ALWAYS BEEN STATE AND FEDERAL LABOR POLICY TO
ENCOURAGE THE PROCESSING OF AUSTRALIAN RESOURCES IN
AUSTRALIA, WITH THE COMMONWEALTH GOVERNMENT'S ACTIVE TRADE
POLICYj FOCUSSING ESPECIALLY ON OPPORTUNITIES IN THE DYNAMIC
WESTERN PACIFIC REGION; WITH LOWER INFLATION AND INFLATIONARY
EXPECTATIONS; WITH A REALISTIC FLOATING EXCHANGE RATE; WITH THE
STEADY PROGRESS WE ARE MAKING IN IMPROVING INTERNATIONAL
COMPETITIVENESS; AND WITH INCREASING CONFIDENCE THAT STABLE
ECONOMIC CONDITIONS AND MODERATE INTEREST RATES WILL BE MAINTAINED
OVER THE LONG PERIOD REQUIRED TO BRING LARGE PROCESSING PROJECTS
TO FRUITION, THIS GOAL IS BECOMING A REALITY.
THE CAPEL AND COLLIE PROJECTS ARE ONLY A BEGINNING OF A NEW~
ERA OF EXPANSION IN WESTERN AUSTRALIAN MINERAL. S PROCESSING.
SEVERAL OTHER MAJOR PROJECTS ARE AT AN ADVANCED STAGE OF
NEGOTIATION. CHINA HAS INDICATED ITS WILLINGNESS TO PURCHASE
THE WHOLE OF THE OUTPUT OF THE KwINANA BLAST FURNACE SHOULD
THE FURNACE, AND THE LINKED IRON ORE MINE AT KOOLYANOBBING
BE'RE-OPENED. NEGOTIATIONS BETWEEN BHP AND CHINA ON ARRANGEMENTS
FOR LONG-TERM CONTRACTS WILL CONTINUE EARLY IN THE NEW YEAR UPON
COMPLETION OF FURTHER TECHNICAL WORK RELATED 1TO COST OF PRODUCi ION.
BHP IS OPTIMISTIC ABOUT A FAVOURABLE OUTCOME.
i :. RTH PRIE INISTER OFFICE ( 09) 325 3 u*,
7.
NEGOTIATIONS ARE ALSO ADVANCED ON TWO MAJOR MINERAL SANDS
PROCESSING DEVELOPMENTS NEAR GERALDTON, ONE OF MONAZITE
AND ONE UPGRADING ILMENITE TO SYNTHETIC RUTILE, AND AN
AMMONIA/ UREA PLANT AT A LOCATION YET TO BE! DECIDED IN THE
SOUTHWEST OF WESTERN AUSTRALIA.
GIVEN THE EXPECTED CONTINUATION OF STRONG GROWTH IN OTHER
SECTORS OF THE ECONOMY, ALL OF. THIS ADDS UP TO AN UNPRECEDENTED
ERA OF ECONOMIC EXPANSION AND PROSPERITY IN COLLIE AND THE
SOUTHWEST REGION, AND IN THE WHOLE WESTERN AUSTRALIAN ECONOMY,
IT ALSO REPRESENTS A SUBSTANTIAL CONTRIBUTION TO THE ECONOMIC
RECONSTRUCTION OF AUSTRALIA, ALONG LINES THAT PROVIDE SECURE
JOBS BASED ON MAKING EFFECTIVE USE OF AUSTRALIA'S COMPETITIVE
ADVANTAGES IN INTERNATIONAL TRADE. IT REPRESENTS A SUBSTANTIAL
CONTRIBUTION TO THE RESTORATION OF THE FORTUNES OF AUSTRALIA'S
TROUBLED HEAVY ENGINEERING INDUSTRY.
THESE MAJOR NEW DEVELOPMENTS ALL OF THEM COMING WITHIN
REACH ONLY IN THESE LAST FEW MONTHS SINCE WORK ON THE CURRENT
BUDGET WASCOMPLETED ARE A REWARD FOR THE PROGRESS THAT
HAS BEEN MADE IN IMPROVNG AUSTRALIAN COMPETITIVENESS AND
RE-ESTABLISHING STABLE ECONOMIC CONDITIONS. THESE NEW
DEVELOPMENTS HAVE BEEN ASSISTED SIGNIFICANTLY BY THE BUSINESS
TAXATION INITIATIVES ANNOUNCED IN THE BUDGET, INCLUDING THE
PROVISIONS FOR GROUP TAXATION, MORE RAPID DEPRECIATION OF
INCOME-EARNING BUILDINGS, AND THE ONE-YEAR PARTIAL EXTENSION
OF THE INVESTMENT ALLOWANCE.
Aeov 19, e4 107K' 5, PERTH PRIME MIN. STEt. O1* jrICE 3_
8.
BUT LET ME MAKE ONE POINT CLEAR: THIS GOVERNMENT DOES NOT
LOOK TO EXPANSION IN THE RESOURCES SECTOR ALONE FOR MAINTAINING
STRONG GROWTH IN THE AUSTRALIAN ECONOMY.
WE ARE SEEKING TO PROMOTE STRONG PERFORMANCE ACROSS ALL SECTORS,
AND NOT A LOP-SIDED RESOURCES BOOM.
IT WAS THE HEIGHT OF FOOLISHNESS FOR THE LIBERAL AND -NATIONAL
PARTIES IN GOVERNMENT TO BELIEVE THAT STRONG GROWTH IN ONE SECTOR
COULD SOLVE THE PROBLEMS THAT THEY HAD CREATED FOR AUSTRALIA.
ONE IMPORTANT COMPONENT OF THE RESOURCE SECTOR, COAL MINING ON THE
EAST COAST, WILL BE A MAJOR FOCUS OF CONCERN FOR THE NEW LABOR
GOVERNMENT AS WE ADDRESS PROBLEMS ARISING FROM THE OVER-CAPACITY
ESTABLISHED IN THE SO-CALLED RESOURCES BOOM, WHICH WILL CONTINUE
FOR SOME TIME DESPITE EXTRAORDINARILY STRONG GROWTH IN PRODUCTION
AND EXPORT VOLUMES.
WE ARE SEEKING WELL-BALANCED GROWTH IN AUSTRALIA, WITH ALL
SECTORS CONTRlBUTING THEIR PARTICULAR STRENGTHS.
FROM NEXT YEAR, WITH THE RESOURCES SECTOR AGAIN CONTRIBUTING
STRONGLY TO GROWTH IN THE ECONOMY, WE ARE SU1PERBLY PLACED TO
MAINTAIN THE POSITION THAT WE HAVE ESTABLISHED FOR OURSELVES
SINCE MID-1983,. AMONGST THE FRONTRUNNERS OF THE WORLD' S ADVANCED
ECONOMI ES.