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7.00 p.m. /&ÃÂ EMBARGO:

FOR PRESS 4 September 1977

ELECTORATE TALK

Governments and people throughout the world are concerned  about the conservation of energy and the need to develop energy  resources and technology for the benefit of all people.

Australia - because of our abundant energy resources - has special  obligations.  We have a need for a sound and workable energy  policy to achieve a balanced development of our resources.

When framing our policies, we must strike a balance between  our own. present,,.and future needs.  We must also "strike a balance  between our own energy interests and our responsibility to  contribute an adequate and stable supply of energy raw materials

to other countries.  My government is acutely mindful of its  dual obligations, in this critical area.  .

However, we do not see a detailed national energy policy as  a rigid blueprint to,develop our resources.  Rather, we believe  an energy policy must be flexible so it can adapt to changing  circumstances and needs.  ,

The Government's role is to create conditions for the proper  and balanced development of energy resources, with full regard to  the impact on people and the environment. We are creating  those conditions.

The Government's resource initiatives are key and integral .   elements in our energy policy. Our decisions on the mining and exnort  of uranium, the development of the North West Shelf, and  our crude oil pricing policy - along with mining industry

incentives - are interwoven. They were not isolated decisions,  but taken with full regard to the requirements of an evolving  energy policy. ' '

Although we are resource-rich compared with most countries, Australia's greatest resource deficiency is liquid fuel  which is such a vital energy source.  In the absence of further  discoveries, our domestic production will contribute a declining

proportion of our liquid fuel requirements in the years ahead.

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There are several ways of tackling this problem including,   encouraging the development of our known crude oil and  exploration for new oil; encouraging conservation of our  resources with appropriate pricing and other policies ;

constantly examining new technology in meeting our energy  requirements, and in particular, our liquid fuel requirements.

The Government is taking positive action in each of these areas. We have encouraged oil exploration and development through a  wide range of incenti\res. Our record stands in stark  contrast with the Labor Government which refused to encourage

the search for more oil, to the nation’s cost. We have  encouraged the conservation of our scarce crude oil resources  through our pricing decision.  We increased the price of crude  because we could not afford to continue with a pricing policy ^

that flew in the face of all energy conservation principles fe by condoning excessive consumption of our scarce supplies. We also needed a pricing policy that encouraged new exploration

to make sure of the full recovery of our known deposits. We now have that policy.

It is clear that Australia's energy research must be stepped  up significantly as a matter of urgency if we are to develop the  required technological capacity to participate in world advances. We are taking positive and planned steps to improve our .

energy technology - and we will play our part in developing  that technology for the world to share.

For example,  we ar e .examining the possible production of liquids  for fuel from coal. The Government has announced it it willing  to join with the States and the Federal Republic of Germany  to examine the feasibility of setting up a coal based motor @

spirit plant in Australia. >Â·-

Australia has also signed an agreement with the United Kingdom  to encourage joint cooperation in coal technology and research. __  Discussions with the United States are also at an advanced stage Q   in this area.  .  A Government official - a coal research specialist -  will be visiting the United Kingdom and United States shortly

to liaise on detailed aspects of cooperation.

We have also announced a levy of 5c a tonne on coal production in  Australia in the next three years to finance coal research.

Of the so-called alternative energy sources, solar energy  seems the most logical for exploitation in Australia. There is  already a sizeable solar energy research programme in Australia  to which the Government is the main contributor of funds through

the C.S.I.R.O. and the Australian Research Grant Committee.

Unfortunately, Government spending restraints have meant that the  Government had to defer any immediate plans for expanded funding  in this area for the coming financial year.  But the Government  has announced its decision that as resources flow from the further  development of uranium., additional funds will be provided to

increase substantially our national effort on solar energy research.

The Government has before it the report on solar energy,  from the Senate Standing Committee on National Resources, .

and is awaiting the advice and recommendations on energy  research and development from the National Energy Advisory  Council and also from the Australian Science and Technology Council.   These two expert bodies are also considering matters relating -

to energy research and development in the context of overall  research and development in Australia. .

The Government is aware of its obligations,  and. responsibilities  with our great energy resources.  Our actions have demonstrated  our commitment to conserving energy and developing those energy

producing, materials we have :  in abundance,  to the benef it of  all nations.

