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Australian tobacco leaf percentages



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PRESS STATEMENT

966

Australian Tobacco Leaf Percentages

Statement by the Minister for Customs and Excise (Senator the Honorable Denham Henty)

The Minister for Customs and Excise and Acting Minister

for Trade, Senator the Honorable Denham Henty, to-day announced

reductions in the determined minimum percentages of Australian

tobacco leaf to be used in the production of cigarettes and

tobacco. Tobacco manufacturers who use these, percentages in

their blends qualify for concessional rates of duty on leaf

they import.

Senator Henty said the existing proportions of 43 per cent,

for cigarette production and 40 per cent, for tobacco production

for the year ending 3 0 th June, 1963, would be reduced to 40

per cent, and 37 per cent.' respectively' as from 12th September.

The proportions for the year commencing 1st July, 19 6 3 , namely

43 per cent, for both cigarettes and tobacco, would be reduced

to 40 per cent, for both products.

This action had been decided, on, said Senator Henty? after

.discussion between himself, the Minister for Trade, Mr. McEwen,

and the Minister for Primary Industry, Mr. Adermann. '.· A

reduction in the statutory percentage was necessary because

this year’s Australian tobacco leaf crop had fallen substant- ,

ially short of original expectations.

Senator Henty went on to say that these adjustments did

not in any way relate to the usage of the 1963 tobacco leaf

crop. As soon as reliable indications of the size of the 1963

tobacco leaf crop were available early next year, the percentage

for the manufacturing year commencing 1st July, 1964, would be

determined in accordance x^ith the customary arrangements. ·

The Minister said that except for Western Australia, this

year's selling season had been most successful for growers.

Approximately 95 per cent, of all leaf offered had been taken

up by manufacturers and prices had proved satisfactory.

However, Senator Henty continued, growers and the State ‘

authorities assisting them must continue their efforts to

improve the quality of leaf for the future good of the

Australian tobacco-growing industry. In particular, he said,

it would be undesirable for expansion to proceed in areas where

the possibilities of producing good quality leaf had not been

tested by adequate research. The allocation of £259,290 which

the Minister for Primary Industry announced recently would

facilitate expansion of research programmes. This money,

Senator Henty added, had been allocated from the Tobacco

Industry Trust Account which is financed by contributions

from manufacturers, growers and the Commonwealth and State

Governments.

Senator Henty said that certificates had been issued by

him to all manufacturers entitling them t o ·the relevant duty

concessions. The system introduced by the Government early

this year to give a n 'effective degree of stability to the

tobacco-growing'industry had worked quite satisfactorily

during the 1962-selling season. However, the Government

would continue to keep the arrangements under review in

order to ensure- their continued effectiveness. '

CANBERRA. A.C.T. 1 0th September, 1 962.