DEVELOPMENT OF AUSTRALIA.

Press, Volume LXIX, Issue 20919, 28 July 1933, Page 12

DEVELOPMENT OF AUSTRALIA.

NORTHERN TERRITORY SCHEME. FEDERAL GOVERNMENT'S HOPES. Chiom our owx corbespondeht.) SYDNEY, July 20. ' Great interest has been shown in : the announcement of the Federal ] Government's policy for the development of the vast Northern Terri- < tory, which to-day is almost unpopulated. Time and again experts ' have expressed the view that this . great area of tropical and semi- ; tropical country had a great future before it, but so far nothing has ' happened to suggest that there was , any sound foundation for these predictions. Millions of pounds of pub- ; lie money have been spent within the territory for no return whatever. Private enterprise has nibbled at the territory, and the nibbling has been to its sorrow. Labour troubles have done more than anything else to bring about failure after failure, and it would seem that the majority of the men who have settled at Darwin prefer to live on the beneficence of the Federal Government. Whenever they get a job they complain about the labour conditions until the job itself is abandoned. Everybody applauds the decision of the Government to leave the development of the territory to private enterprise, but people are wondering whether there will be a chartered company brave enough to face the risks that have been the undoing of ail that have preceded it. It is at last recognised that governmental development is impossible because of the constant changes of government, but there is nothing to prevent the present government granting a charter to a private company that would remain unaltered through the years. It would have to be a water-tight agreement, as the Labour party is bitterly opposed to any scheme of this nature. To the Labour party the concessions proposed are breathtaking. Complex Problem. The complexity of the problem will entail long negotiation, but the Government believes that it will be possible to overcome all difficulties fairly readily because of the liberal basis on which it is prepared to work. The Government will assist by all means in its power the establishment of a chartered company with a sound constitution to operate in the territory that would be allotted to it. It is to be clearly defined, however, that the Government will decline to be financially interested in the formation or operation of the company or companies. The Government will facilitate the activities of the companies by granting special land tenures, by certain exemption from taxation, and by special tariff concessions, but that will be the limit to which it will goIt was at first believed that the whole of the territory could be managed by one company, but this is now regarded as impracticable. It is pointed out that with the big holdings there would be a great variety of interests, suggesting that two companies at least would be necessary. At any rate, the Government will be glad to hear from two companies instead of only one, and is prepared to divide the area accordingly. Experts say that the greatest difficulty would not be in making a success of the development of the Northern Territory, but in forming a company. The capital required would be £25,000,000 or £30,000,000, and as «no dividends would be likely until the end of at least 15 years, it is hard to see how the necessary capital would be attracted. Expert's Views. Although he is by no means optimistic about the formation of the companies, M. J. B. Cramsie, an authority on the meat industry and a man who knows Australian conditions better than most, is able to visualise the development of the Northern Territory under the chartered company plan. He lived for 13 years on the fringe of the territory in central Queensland, and he knows the possibilities. The great empty wastes, he says, would be quickly converted into vast cattle runs, with railways, meat works and factories beckoning.for an evergrowing population. He is convinced that the companies scheme is best for the territory and that under it the area would be improved almost to the maximum as far as the carrying of horned stock was concerned. The number of stock, he thought, would be increased by five times its present number by the end of 20 years. Land-hungry people might find their great opportunity in the north, for the company, for its own benefit would subsidise subsidiary industries. There would be a development of tropical agriculture such a-; sugar cane and oil plants and the establishment of the fishing industry. It is understood that the Government has already received a tentative offer from one important group which is prepared to open negotiations No decisions will be reached hurriedly and the Government will be prepared to discuss every point with the exception of one—the maintenance of the White Australia policy. That policy will remain unalterable. It is important to note that the success of the Government plan will depend very largely upon the attitude of Vesteys Ltd., which is one of the most important groups with an interest in the territory. Most of the Vestey leases do not expire until 1965. So far the Government has not been approached by Vesteys, but it is stated that preliminary conversations will be carried out in London.