Embargoed until 7.0Q p.m. Broadcast 3HA 11 Septembe

3YB 15 Septembe

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PRIME MINISTER

FOR PRESS 11 SEPTEMBER 1977

ELECTORATE TALK

There is now a better understanding amongst most Australians of  the difficulties facing many primary producers.

In many cases prices have stayed at low levels while costs have  risen sharply over the last five years. Thus it has become  necessary for the Commonwealth Government to give greater  assistance to primary industry. The present Government has taken  positive action to assist primary producers.

In the wool industry, the Government has substantially increased  the reserve price and at the same time established that price for  a minimum of two years, thus giving a long term stability to the  industry that it has not had for many years. Particularly as a  result, of .tha.t,= ancLas— a  result of the live sheep export to the  Middle East, prices of sheep are also much higher than they have  been for a long while.

For dairy farmers we introduced substantial underwriting to  enable higher interim payments to be made. We reintroduced the  superphosphate bounty on a reliable basis and we have maintained  the nitrogen fertiliser bounty for an important and significant

industry =

A number of measures have been introduced to assist the cattle  industry. We abolished the Meat Export Levy. We have introduced  a rural adjustment scheme with improved provisions, and assistance  for farm build-up, debt reconstruction and rehabilitation, and  assistance will also be provided for farm improvements, carry-on  finance and household support.

In the first Budget, we introduced the Income Equalisation Deposit  Scheme. I believe it is one of the most far reaching reforms for  rural producers, and has provided substantial assistance to farmers,  helping them to cope with the problem of fluctuating incomes. It

is interesting to note that this scheme was condemned outright by  Labor.

In the last Budget, the Government announced that it would set up  a National Rural Bank. It will be a statutory body established  by legislation which will be introduced this session. The Treasurer  and Minister for Primary Industry are now working on precise details

as to how the Bank will operate. The Bank will make sure that  farmers get better access to finance and on terms which meet their  special needs. It will work alongside existing trading banks.

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Most of Australia's rural industries rely heavily on export sales. Some 90% of wool clip, 75% sugar, 65% wheat and 55% beef and veal  products are exported. In these circumstances, our agriculture is  highly vulnerable to fluctuations in world markets, and the protection

ist policies adopted by some importing countries. We have been  endeavouring in every possible way to secure improved access to  overseas markets for our primary products. For instance, we have  worked hard to protect the beef market in Japan.

The total Japanese imports of beef from all countries in 1973 was at  a peak 127,000 tonnes - Australia’s share of that market was around  80%. In February 1974, Japan closed their market to beef. This  uncertainty of 1974 - early 1975 was clearly unsatisfactory for  Australian producers. That market has now been reopened and from

June 1976-June 1977 Japan imported 85,000 tonnes.

In Kuala Lumpur recently I talked with the Japanese Prime Minister  Mr. Fukuda, and agreed that officials from both countries should meet  to try to establish a greater certainty and stability for the market  of Australian producers. I am pleased that the first round of these

talks will take place in Tokyo later this month.

The Labor Government not only temporarily lost access to the Japanese  market, they virtually lost access to the markets in the European  Community.

Now, for the first time, an Australian Government has taken the  question of the European Community seriously.

The EEC, with 260 million people, 40% of the world's trade and the  wealthiest grouping of countries the world has seen, greatly inhibits  access by agriculture exporting countries. And this is why I have  appointed John Howard as Minister for Special Trade Negotiations to

deal with European Trade. He will be leaving shortly on his first  round of talks with the European Community.

There has been some trade success in other areas. The sale earlier  this year of 3 million tonnes of wheat to China is the largest ever  negotiated. Australia has made further inroads into Middle East  markets for lamb and the volume of cheese sold to Japan has continued

to increase.

In this coming week, the Treasurer will announce major improvements to  the tax averaging schemes for farmers. .

The Government is implementing aspects of an IAC Report relating to  averaging for farmers. The Government has decided that the present  ceiling of $16,000 on tax averaging should be abolished. There will  be no ceiling for farmers in the future. At the same time, we are

making substantial changes in tax averaging that will greatly assist  primary industry. The Treasurer will announce details during the  course of this week.

Further, the Government will examine other proposals designed to  relieve the difficulties of the beef industry. Once decisions are  taken, there will be no delay in their announcement.

The Australian community needs to understand that those who depend  entirely on beef for a living are in a very difficult position.

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I am convinced however that in the long term there are good  prospects for the beef industry. I am also convinced that  sufficient assistance should be given to industry to carry  on through the present difficulty.

The present Governmenthas a solid record of assistance to the Â· . farmer. I do not want to dwell on the past, but Labor established :   the Coombs task force that destroyed the fabric of support that Ã¢ÂÂ    had been built over many years. Further, it abolished the superÂ­

phosphate subsidy. It greatly put up costs through inflation. It sought to reduce the reserve price of wool. It had no underÂ­ standing or sympathy for the farming community.

Compare that record with our record of proposals to assist the  w o o l , dairy and beef industries.

In the next few days, further substantial measures will be  announced to help the beef industry.

Compare their record with the establishment of the Income  Equalisation Deposits, the establishment of the National Rural  Bank and the provision of the averaging for income t a x , together  with measures for the beef industry, which will be introduced

this week.

