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Phasing out of support for dairy industry



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ΓΗΕ LIBERAL PARTY OF AUSTRALIA

FEDERAL PRESIDENT: MR. R.J. SOUTHEY, C.M.G. DIRECTOR: MR. B.G. HARTCHER, O.B.E.

FEDERAL SECRETARIAT BLACKALL & MACQUARIE STS., BARTON, A.C.T. G.P.O. BOX 13, CANBERRA, A.C.T. 2600 TELEPHONE 73 2564 TELEGRAMS "FEDLIB" CANBERRA

I I

NEWS R E L E A S E ! FOR IMMEDIATE RELEASE

F ro m The Hon. J .M . F r a s e r , Μ. P . , L ib e ra l P a r ty Spokesm an on P r im a r y

In d u stry . _ _ __________

The E u ro p ea n .Common M a rk e t h as d e liv e re d one bad blow to the d a iry in d u stry ^ - th e L a b o r G ov ern m en t h as now d e alt a n o th e r. The G o v e rn m e n t's d e c isio n to phase out su p p o rt fo r the d a iry in g in d u stry is p re d ic ta b le a s a r e s u lt of th e ir

actio n s affecting r u r a l in d u s trie s sin c e D e ce m b er 2.

B e fo re th a t d a te , p rim a ry in d u s trie s w ere led to b e lie v e th a t the L a b o r P a rty

w as co n ce rn e d with r u r a l in d u s trie s . They now know th at they a re not.

It is ty p ic al of the G o v ern m en t th a t the d ecisio n to c u t the d airy in g su b sid y c o m p lete ly h as b een tak e n w ithout d isc u ssio n with in d u stry le a d e r s . It w ill do g r e a t h a rm to a sig n ific a n t n u m b er of d a iry f a r m e r s .

TM> M in iste r fo r P r im a r y In d u stry h a s m ade re fe re n c e to a w idened r e c o n s tr u c ­ tio n p ro g ra m m e , but he h a s given no d e ta ils of how th is m ight w ork.

T he d e c isio n w ill sav e the G o v ern m en t $28 m illio n a y e a r and a s it h a s been

d e a lt into th e s tr u c tu r e of the in d u stry sin c e it w as f i r s t in tro d u c ed by a L ab o r

G o v ern m en t, it w ill c a u se sig n ific a n t s tr u c tu r a l chan g es and d iffic u ltie s in m any d a iry in g d is tr ic ts .

P ric in g p o lic ies w ill be th ro w n into confusion. R e tu rn s to f a r m e rs w ill be s e rio u s ly re d u c e d .

If su ch a d e c isio n a s th is had to be tak en , it should not have b een done w ithout a

full and p ro p e r su rv e y of the im p a c t on p a rtic u la r lo c a litie s so th a t m e a s u re s w hich need to be taken to a lle v ia te h a rd s h ip could be w orked out befo reh an d .

If the G o v ern m en t a rg u e s th a t its ta r if f c u ts w ill o ffset the red u c ed r e tu r n s to

the p rim a ry in d u s trie s , and in p a rtic u la r, the d ia ry in d u stry , th en I am c e rta in

th a t th a t a rg u e m en t w ill p ro v e to be illu s o ry . P r im a r y p r o d u c e r s ’ c o sts w ill

not fa ll.

T he actio n s of th e G overnm ent in p e rm ittin g ra p id in fla tio n w ill indeed in c re a s e p ro d u c e rs ' c o s ts . W hile I should be delighted to se e a re d u c tio n in c o sts as a

r e s u lt of the ta r if f c u ts , I b e lie v e the effect w ill be m a rg in a l only and it w ill not .

o ffse t r i s e s due to in fla tio n a ry p o lic ie s.

ψ £ << ψ ψ sj« φ ψ # φ

JM F :FS:25 JU LY 24, 1973.