Aust. Wheat Dilemma

Press, Volume CX, Issue 32360, 28 July 1970, Page 18

Aust. Wheat Dilemma

<N.Z. rtf u A(in.—Copyrlpht> CANBERRA, July 27. The Australian Government’s estimated support for growers of export wheat under the wheat stabilisation scheme has more than doubled.

The Minister of Primary Indutries (Mr Douglas Anthony) speaking in Perth tonight, described the scheme as proving its worth. Addressing a conference of the Western Australian Country Party, Mr Anthony said that for the first year of the stabilisation plan (which was negotiated two years ago for a five-year period), the Commonwealth contribution was estimated at between s2m and s4m. In fact, the Commonwealth’s contribution would now be more than s3om for the first, year.

The stabilisation plan provides a guaranteed return to the grower of export wheat.

Sales under this guarantee add to the Commonwealth’s contribution.

Mr Anthony said: “When the plan was negotiated, Commonwealth support over the five years was estimated at

368 m. But, based on recent cost experience and on present world prices, the estimate now would be more like 8175 m.” Mr Anthony also announced that, for the second time, the Australian Wheat Board would not be able'to meet its commitments to the Reserve Bank, and that special financial arrangements would have to be made. In the last Parliamentary sesssion, legislation approved for the loan to the board of up to 8300 m to meet its 1970 commitment to the bank of at least s2som. The board borrows the money each year to assist in the marketing of the wheat crop, but for 1970 its income from sales was not enough to repay the borrowings in full by the due date. The Commonwealth, as guarantor of the stablisation plan, had to lend the board enough to repay its debt. Mr Anthony also announced that the board would not be able to pay off this debt on the 1968-69 pool until about the middle of 1971. When legislation for the Commonwealth to lend the board the money was introduced on March 4, 1970, the board estimated that it would take 15 months to recoup the debt from sales. A second payment on the 1968-69 pool could not be made until the debt was paid off. Mr Anthony said.