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Friday, 28 November 1986
Page: 4064

(Question No. 4581)


Mr Mildren asked the Minister for Primary Industry, upon notice, on 18 September 1986:

What (a) expenditure was incurred in marketing Australian products abroad and (b) has been the change in expenditure in real terms in each instance of the (i) Australian Wheat Board, (ii) Australian WoolCorporation and (iii) Australian Dairy Corporation in each of the years 1980-81 to 1985-86.


Mr Kerin —The answer to the honourable member's question is as follows:

(a) Overseas marketing expenditure incurred by the statutory marketing boards concerned with wool, wheat and dairy products is as follows-

Year

Australian

Wheat

Board

Australian

Wool

Corporation

Australian

Dairy

Corporation

$Am

$Am

$Am

1979-80...

6.8

45.5

1.1

1980-81...

9.9

52.1

1.1

1981-82...

11.0

56.5

0.6

1982-83...

13.8

61.2

0.7

1983-84...

15.5

75.4

0.7

1984-85...

19.8

76.3

1.0

1985-86...

29.1

101.2

1.4

Notes:

1. The Australian Wheat Board (AWB) has derived from its published annual financial statements estimates of expenditure, including salary costs, directed to its export marketing function. The large increase in costs between 1984/85 and 1985/86 is due primarily to the commencement of silo construction projects in Egypt directly related to the marketing of Australia's wheat in that country.

2. The Australian Dairy Corporation advises that the variation between 1980-81 and 1981-82 was caused by a significant reduction in promotion activity in Japan, resulting from a decline in the level of milk production in Australia and a consequent fall in the volume of cheese available for export to Japan.

Apparent real expenditure incurred for overseas marketing by these statutory marketing authorities has been calculated by inflating actual expenditure using the weighted average consumer price index (CPI) for all major capital cities, with a base of 1985-86=100. The results are as follows-

Year

CPI*

Australian

Wheat

Board

Australian

Wool

Corporation

Australian

Dairy

Corporation

$Am

$Am

$Am

1979-80...

61.47

11.1

74.0

1.8

1980-81...

67.25

14.7

77.5

1.6

1981-82...

74.24

14.9

76.1

0.8

1982-83...

82.78

16.7

73.9

0.8

1983-84...

88.50

17.5

85.2

0.8

1984-85...

92.27

21.4

82.7

1.1

1985-86...

100.0

29.1

101.2

1.4

(b) Changes in apparent expenditure in real terms (1985/86 values) incurred for overseas marketing by these statutory marketing authorities were thus as follows-

Year

Australian

Wheat

Board

Australian

Wool

Corporation

Australian

Dairy

Corporation

$Am

$Am

$Am

1980-81...

+3.6

+3.5

-0.2

1981-82...

+0.2

-1.4

-0.8

1982-83...

+1.8

-2.2

0.0

1983-84...

+0.8

+11.3

0.0

1984-85...

+4.0

-2.5

+0.3

1985-86...

+7.7

+18.5

+0.3

It should be noted that the above data do not provide an accurate indication of changes in real marketing efforts overseas as other factors, including exchange rate variations and different rates of cost increases in overseas countries, affect Australian dollar expenditure and promotion effort in overseas markets.

* Source: Australian Bureau of Statistics; Consumer Price Index Catalogue No. 6401.0.