(Statement ..by Rt Hon. J.D. Anthony, M.P., Deputy Prime  Minister and Minister for Trade and Resources, in the  House of Representatives, 13 September, 1979.)

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URANIUM ADVISORY COUNCIL FIRST REPORT

For the information of honourable members

I have pleasure in tabling the first Report of the

Uranium Advisory Council covering the operations of

the Council for the period ended 30 June 1979.

Honourable members will remember that one '

of the principal recommendations of the Ranger Uranium

Environmental Inquiry was that there should be established

a Uranium Advisory Council to advise the Government and

report to Parliament with regard to the export and use

of Australian uranipm having in inind the hazards,  dangers

and problems of and associated with the production of

nuclear energy.

The terms of reference of the Council and the

groups from which representation would be drawn were

set out in my statement to the Parliament on 10 April

1978.

On 24 November 1978 I was pleased to announce

the names of the distinguished group of Australians who

would serve on the Council under the Chairmanship of

Sir Laurence McIntyre. .

The Council held its inaugural meeting in

January 1979 and has met regularly since. As honourable

members will see from the Report, the Council has been

most industrious in informing itself on issues related

to the nuclear fuel cycle and it has already initiated

studies of several issues which it sees as relevant to

the development of the uranium industry in Australia. I

look forward to receiving its reports on these studies.

In its Report, the Council has drawn attention

to the question of communications between itself and the

Government.  In the initial stages of any independent

advisory body there will be an inevitable settling-in

period during which the relationship between the advisory

body and the Government is developed. The Government notes

the Council's desire to be kept closely informed on areas

where Government decisions might be made in the future,.  .

and I have drawn the Council’s comments in this regard

to the attention of my Ministerial colleague^. The

extensive briefings provided to the Council by Departments

and related statutory bodies, referred to in the Council’s

Report, reflects the Government’s desire that the Uranium

Advisory Council be fully informed on matters of Government

policy. '

I have already asked the Council for its views

on the possibility of the Government disposing of its

interests in the Ranger Uranium Project. I "will refer . Â«

to this aspect later. .  .

Ã¢ÂÂ¢  x I' am also referring to the Council the final

Environmental Impact Statements of Pancontinental Mining

Limited and Noranda Australia Limited, when prepared,

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together, with any comments, suggestions and

recommendations provided by the Minister for Science .

and the Environment under the Environment Protection

Administrative Procedures.

In formulating the role and functions of the

Uranium Advisory Council, the Government was conscious

of the suggestion of the Ranger Inquiry that the Council

should have a substantial degree of independence and be.

able to undertake periodic reviews of Government policy.

In this regard the Government has been expecting that the

Council will be self-motivated in pursuing the role envisaged ... . 3

for it by the Ranger Inquiry? I would also wish to see the

Council take up the suggestion of the Ranger Inquiry that

the Council could provide accurate information to the

public in order that the public may be kept fully informed.

I consider the Uranium Advisory Council has an .

important role to play which will not only involve it in

responding to matters referred to it by the Government from

time to time, but which also will require the Council to

demonstrate a significant measure of initiative in order

to establish the level of public confidence envisaged by

the Ranger Inquiry.

In relation to the Ranger Uranium Project,

honourable members are aware that the Government is

examining proposals for the acquisition of its interests

in the Ranger Uranium Project. As I indicated in answer .  .  Â·' Ã¢ÂÂ   S

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to a question by the honourable member for Blaxland on

21 August, .the Government has not yet decided whether or

not it will dispose of its interests in that Project.

That decision will not be taken until we have an Ã¢ÂÂ

opportunity to examine proposals submitted by companies.

I would also mention that I have asked my .

Department to investigate the possibility of divesting

the Government’s shareholding in Mary Kathleen Uranium Ltd.

As I have mentioned, I asked the Uranium Advisory

Council for its views on the possibility of the .Government .

disposing of its interests in the Ranger project. The

Council has advised me in a letter dated 22 August 1979

that the prevailing view of the Council is that the Government

should continue to retain a substantial interest in Ranger

with most members believing that the Government should not

at present contemplate selling any of its share. However, . .  v ’  '  .

in its letter the Council does indicate that some members

have suggested that, while any sale of the Government’s

interest in whole or in part, if there is to be a decision

to sell, should be made for the most part to an Australian

consortium, it would be appropriate to allow some overseas

buyers to acquire a minority interest. . .

The Council goes on to say that,  if the Government

does decide not to sell, it should establish a separate

commercial authority to take over the management of its .

interest from the Australian Atomic Energy Commission,

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leaving the Commission to carry out its nuclear and other

energy research and advisory functions.

I seek leave :to have the full text of the letter

from the Council incorporated in Hansard. .

The Government will be proceeding to examine

proposals submitted by companies for acquisition of the

Government's interests in Ranger. .The .views of the Council

will be taken into account by the Government when it finally

takes a decision on this matter, but as the Council has noted

the decision is ultimately a political decision. In its

letter the Council does refer to environmental, safety

and other controls and regulations on uranium development.

I will be asking the Council to examine this aspect more

closely and to advise me if it sees any particular

difficulties in this area. .  '

The Government has received about 50 expressions

of interest in acquiring the Government’s interests in the

Ranger Project. As I previously advised the House, this

interest exposes the falseness of the argument of those

people who say that there is no market for or interest

in uranium. Â·  -

Indeed, the market outlook for uranium over the

balance of this century is very encouraging. Over 800

reactors are either operating, under construction, ordered

or planned in some 47 countries.

I have been advised by the Australian Uranium

Export Office that the demand for natural uranium is ,

estimated to increase from 37,000 short tons U^Og this

year to about 100,000 short tons U^Og in 1990.

Indeed, in regard to the period beyond the late

1980s, the question is not whether there will be a market

for uranium but whether there will be a productive capacity

available to meet the requirements of the reactors then

in use. '  ‘ Â·

There can be no question that the orderly

development now of the Australian uranium mining industry

will not only bring economic benefits to this country,

both over the next decade and beyond, but it will also

.make an essential contribution to world energy requirements

to the overall betterment of future international economic

stability and prosperity,

