Senator WRIGHT (Tasmania) -I wish to speak briefly on this matter. I support most strongly the amendment moved by Senator Laucke. I recall that this blow was delivered to the apple industry in the time when it was facing its greatest economic crisis. This was as a result of a decision which came from Dr Coombs and his myrmidons on economic considerations. It was made without a whit or a whim of policy and with complete imprudence- almost perversityon the part of a large section of the Labor Party in an effort to destroy the rural industries. This exemption from sales tax provision was introduced so that carbonated cordials could be the vehicle by which assistance could be given to that part of the fresh fruit industry incorporating juices in its production. If 5 per cent of production were incorporated, some exemption from sales tax was given. Over 15 or 20 years all sections of the industry have built up their particular sections based upon a degree of stability in our taxation law. It was during the time of Mr Falkinder, when he was the member for Franklin, that this provision was adjusted to the advantage of the apple grower.

In a crop of apples there are secondary grades. There are unwanted varieties and unmarketable sizes. These apples are particularly appropriate for juicing. Last year approximately 1,069,000 bushels of the total factory intake were used as juice apples. In addition to that, of course, there were some factory apples which would account for 3,000 or 4,000 bushels. But in the case of the 1 million bushels that went into juicing, the producer received the small pike of only 50c a bushel. It has to be remembered that transport costs are minimal and packaging does not exist. None of the hazards of a 12,000 mile journey to an English market are involved. So for the final I million bushels of apples which are readily and inexpensively available the Tasmanian grower receives as a return $500,000, which constitutes the cream or the final result of his income.

It is proposed that this sales tax be removed. This will mean that the cordial industry will buy only a negligible quantity of the fruit for fruit juice. Consequently, all of the second grade and inappropriate varieties and unmarketable sizes will create pressure on the overseas market. Obviously these unwanted varieties will be introduced into the export trade to such a degree as to produce a blemish on the general pattern of the export trade. Those involved in the export trade see that that situation would be responsible for a depression of price on the overseas market, probably of the order of $ 1 a case. The same results would be seen on the domestic market. I believe that the total Australian apple production for juicing varies from 3 million to 4 million bushels. Even if only one quarter of this amount were to come on to the domestic market, the average price of apples would be lowered by 5c to $ 1 a bushel or the equivalent of a loss of $4m to $ 10m for the apple producers. This is in addition to the direct loss of income which is suffered because of the inability to sell fruit for juicing. It is to be seen that this will be a severe blow on an already depressed industry.

Added to that is the fact that the Government has carried on vigorously with its grubbing policy- its so-called tree-pull policy. Out of the total amount of $4.6m made available for the tree-pull scheme well over a year ago only $202,327 had been paid to the growers as at 3 1 July this year. One then contemplates what else the Government can do to damage this industry. I have already emphasised that point in a previous speech I made today. The Government has effected 2 devaluations in our currency and created a loss for our apple industry in Tasmania of at least $3m, but it has provided compensation to growers to the extent of an upper limit of $1,500 an orchard. This method of compensation is highly discriminatory and worked out on an ill-considered basis. Of course, it is most unjust to the apple exporter who employs his labour to get his crop abroad. Up to July the Government had paid out only $202,000 in relation to its tree pull scheme.

Ninety per cent of the amount provided for compensation to growers following revaluation has been paid out but it has been limited to $1,500 a grower, which represents half compensation. The growers have been receiving only 30c instead of a just 60c a case, and this compensation has been limited to about one-quarter of the crop. Would anybody ever really dream that we could have such obstinate stupidity on the part of a Government determined to bring the industry into an economic phase? Not long ago I was at a meeting at which Senator Wriedt almost exuded jealousy when he referred to the stabilisation scheme that the Government of which I was a member brought in 3 years ago. I am proud to claim that I played quite an influential pan in getting it accepted. Senator Wriedt, almost with jealousy and resentment, referred to that scheme as probably the most generous primary producing stabilisation scheme operating in Australia, in spite of the fact that I had to submit to all the criticism that it was scarcely worth while. This year it will probably be worth 67c a case for growers who export to unfavourable markets.

This Government is so purblind and obstinate that it seeks to withdraw the sales tax exemption which enables these growers to get their nonexportable or second grade varieties into the juice factories to get some return from them. The Government commissioned Dr Coombs to scavage the economic corners of the Treasury so it could deny to the fruit industry that assistance in the year of the industry's greatest depression. Today Senator Cavanagh took to himself great exaltation of the soul by reading from notes by Senator Ken Wriedt of a fortnight ago. Senator Cavanagh said: 'For the first time we have made an approach to Japan to get a new market for the apples'. Does he not remember that I had to prod Senator Ken Wriedt 3 times before he grudgingly said that he would undertake the negotiations? We have an opportunity to help this industry, which is one of the most wonderful industries in Australia, in this age of regard for the environment, in which Senator Mulvihill should rejoice. The apple industry is the loveliest industry which one could find. The opportunity presents itself to establish in Japan a market which would be a tremendous market for this industry. But this Government delivers to the industry blow upon blow- the delay in the grubbing grants, the denial of devaluation compensation and now the withdrawal of the sales tax exemption. The Bill should not be deferred; it should be destroyed.