7ANNEXTI No. L-171 LThis report is restricted to use within the Bank. INTERNATIONAL! BANK FOR RECONSTRUCTION AND DEVELOPMENT FAl Sh DESCRIPTION OF AUSTRALIAN DEVELOPMENT PROGRAMS July 3, 1952 T ,on T1nrtnn - 1 - AUSTRALIA OUTLIVE OF DEVELOPMNT PLANS IN CERTAIN INTRODUCTION This report outlines the main features of the development which the Commonwealth Government has proposed should be the basis for a loan from the Bank. It deals with programs for the following: Agriculture and Land Settlement Coal Mining Iron and Steel Electric Power Railways Road Transport Non-ferrous Metals and Industrial Minerals Tindntrial nAvantment ThA report hneAed n infnrmatnn prnv4Ad h the rnmmnwal1th Government.. The Bank has not had an opportunity of studying the development po4e vb4h make up +hen programs nor of dseunci4n them with the State and Commonwealth authorities and the business enterprises -- ,.'4 w 4l.3 nn & --4- 4-1-- -4- T- 4-U- - - -4 4. ~ VJ4.~' ~ J. - v -z4'.V J VIJ%P- '-"U. 46 & V44&V JWUJ .L L.UC work, the Bank mission which visited Australia in the spring of this year was in touch w4 .4 a number of koA4es conen r44-U a - 4- o development projects and saw something of the work that is being projects. The Bank is, however, satisfied that the need for develop- ment as set out ia these programs is of the highest priority and that the general lines on which this development is being carried out is appropriate to the ends in view, -2 - I. AGRICUTURE AND LAND. SETTLEMT PROGRAM Objectives The need to supply food to Australia's growing population, and to expand the export of those agricultural and pastoral products which provide Australia's main source of income, have now been fully recog- nized by the Commonwealth and State Governments. Increased food production is also realized to be an important contribution to defence preparedness. The Commonwealth and State Governments have accordingly agreed upon a program which sets certain output targets for the crop year 1957/58. Under this program, grain production is to be raised by 20%, the wool clip by 10%, meat production by 15% and milk production by 134. Achievement of these aims would increase the production of Australia's principal export products by about LA 100 million (t220 million) based on 1941/52 prices. Durino the five vars of -the nrnrnm the nPnned incr-nn. ann be achieved only by improving existing farms and by carrying forward certain devel=,ment mna+oamnvudrwy Mnw4aina term projects will be started, although they can contribute to i.na A rnAnc4nn ^ly #%rA. 4hk a-A n^ ha + 4I a ra- -m"4nA imup rvemoue n u t-ouu su use of fertilizers and the adoption of better methods of farming and animal husuary. Te ma tsel s o mae gou te arrear u wain- tenance and the deficiencies due to the agricultural depression of the nirties and To tne impovsuxlly of getting equ>pment ana material during-and after the war. Much of the existing machinery has become uneconomical through long use,. or obsolete through technical advances in design. Increased and improved mechanization necessarily Involves dollar expenditure., Heavy duty wheel tractors required for large scale cereal cropping, and additional supplies of heavy duty ploughs and harvesting machines, have to be Imported from the United States, the only country where machines.suited to Australian conditions are made. Fodder conservation machinery-to secure the stability and expansion of livestock breeding must also be imported.. The Commonwealth Depart- ment of Commerce and Agriculture.estimated that the annual investment in farm machinery-required would be about L& 48 million ($107 million). (if this total imports from the dollar area are estimated to be $22 million and imports from elsewhere (mainly the sterling area) LA 16 million ($36 million). These figures are probably too high under present conditions. -3- Basic Development Basic development, involving in most cases water conservation and irrigation works, land clearing and the establishment of new farms, will be carried out mainly, but not exclusively, by State Governments and their instrumentalities. Northern Australia - Development of the Beef Industry This project aims at a substantial increase of the output of beef in the sparsely settled areas of the Northern Territory, Queens- land and the Kimberlye area of Western Australia. It provides for the establishment of much needed water points (sub-artesian bases and dams), for the fencing of farmn And fnr PtocTr route improvement. Basically the project will cover privately owned land and will be imnlemented by individuAl holders; with the Govern- ment providing assistance. Stock route development, however, will rpairssn tlblin 4nvPtnt.-r te cipate in the scheme, the work is estimated to comprise 1,900 bores, 1,700 m ds an".d 50,00 minles of fencIn..Itr adeuimn are available, the project will be completed in five years. By the end of the five years, the direct value of the increase ..L U L4LLU .UL 1 1 1 i.U 1, all" SE0, C G%.LV bZW"UJU Ue a.uUU i U &A J il."-.1Lvl ($22 million) per.annum, which could represent a net addition to export receiLp tp , Queensland 3rigalow land development: upen pla4ns now used for extensive grazing and large belts of Brigalow scrubland, mainly east of the 24-inch rainfall line, are to be developed into a mixed farming pattern in which the cropping of grain sorghum would support intensive beef cattle husbandry and dairy farming. In better areas this would be combined with lucerne, Rhodes grass and wheat growing. Some 750,000 to 1 million acres in the Wandoan-Tarcom region are suitable for closer settlement, with grain sorghum growing and stock fattening as major aims. Similar developments are possible in the Dalby-Toowoomba, Clermond-Rolleston-Peak Downs, Glads'tone-Biloela and Goomeri-Gaynda regions. The total area available for such development covers at least 5 million acres., and it is considered practicable to establish 1,000 new farms within five to seven years. - 4- At full development the annual potential production would comprise: Summer grains and wheat W- million bushels Beef 20,000 tons Dairy produce 3 million lbs. butter (or equivalent) Pigmeats 3 million lbs. The gross value of this production at current export prices would amount to LA 6.5 million ($ 14.5 million). Mareeba - Dimbulah ProJect: This proJect is for irriation and land development and involves the storage of the waters of the Barron rivAr nvqtpm for thp Antabli%hmant of t^Innn ornwno and mixed farming lands on the Atherton tableland. The project, which choiile bn cnmnlAted by 1969 n"nviApm fny thn =Pin3hmn+ of 1,180 tobacco farms and 240 mixed farms with an annual production estimated at LA 7 mi4114n (fiC m14 ur e i I j ec u - V. u A~ .q .J.~ .4 41. L U U~. IL L111. Burdein.. project involves the construction of a weir on the Burdekin river in centalU,~ P .XL~~~U U£U.1UYJU 1KL;±J..L.LjW5 .L rr UppLruXl- mately 200 tobacco farms. Already 80 farms have been provided with water and worK on the remainder should be completed by -y-3/5" Dawson valley Project: This irrigation and land develonment project in central coastal Queensland involves storing water from the Dawson river. It provides for the establishment of about 915 mixed farms to be engaged chiefly in.cotton growing and dairying. Soil survey work has been completed and basic services, including transport, already cover most of the area. The scheme should be completed in about eight years, and result in additional annual production of a value of at least LA 3 million ($6.8 million). Emerald Project: This water conservation, land development and irrigation project in the Emerald area of the Fitzroy Basin consists of the establishment.of about 500 farms to produce cotton, butter, beef, pigmeRts and lamb of a gross annual value of LA 2.5 - 3 million ($5.5 - 6.8 million). New South Wales Riverina Irrigation Project: By channeling and light land clearing over three years, water from existing storage is to be used for the establishment of about 1,500 irrigation farms in the Riverina area to produce dairy products, fat lambs, rice, citrus and stone fruits of an estimated gross annual value of at least LA 6 million ($13.5 million). -5- Blowering Dam: This water conservation scheme is to provide for the extension of irrigation farming in Southern New South Wales, It has not yet been begun. Other Projects: Longer term irrigation works are in progress, such as extensions to the Hume and Burrinjuck Dams. Victoria Heytesbury Area: In the Heytesbury area there is a project for land clearinR and the development and establishment of about 600 dairy farms over five years, producing a gross annual value of LA 3 million (t6.8 million)- It haq not vet bnpn startel- wrt.enon of E18in Dam Thin nrniet. alranAv in mnt involves the completion of irrigation channels and other water distri- bution wrnlr 4 4+ha Plihn 7alny + incese +hn 4"4 meal -a -p"m 350,000 to 700,000 aires over ten years. It is estimated that it will resul. in am nal aAnien+4,- atmP +Va L- A -4114- f1t2 e 4 out at the Nambrok-Dennison, Cairn-Curran, Maffra-Sale and Rocklands acres (over and above 70,000 acres already cleared) for the establish- ment, over the next seven to eight years, of an additional 150 to C00 farms, chiefly dairy and fat lamb farms, producing an annual gross value of LA 05 million ($1.1 million). Ninety-Mile Desert: A project underta1;en by a leading insurance company for the clearing of about 300,000 acres of land and for the establishment of fat lamb and wool farms. Western Australia The project,.already in progress, is centered in the Denbarker- Albany area and involves land clearing for the establishment of about 600 wool, fat lamb and beef farms over the next three to five years to result in an annual gross production of about LA 3 million ($6.8 million). Tasmania Montague Swamp and surrounding areas: The project is for the draining and clearing of swamp areas for the establishment, over 10 to 12 Years, of about 500 new dairy and mixed farms producing on completion a gross annual net value of about LA 3.5 to 4 million ($7-8 to 9 million). - - -0 King Island: Land clearing and the establishment of 100 to 150 A. - n m ShwA.h4m +ha1 A^ iA iahml 44 e +h4e a 4 a planned. The cost of the additional work is estimated at about -PA -I fdzo4- -3 --, 4-Tm.\ k- 4A-1A -4- - .- --Ime ? n un A about LA 0.5 million ($1.1 million).. Flinders Island: Work is in progress on a land clearing project lor the establisihment, over six years, of '150^ dalry and fato lamb farms. The foregoiig enumwe-LTon of projeuts uos noT exuausT tne fUll list of projects but covers the principal ones which are either under way or could be proceeded with at an early date if finance were available. -7- II. COAL MING PROGRAM Bituriuous amd anuhracite coal (olack coal), mined for the most part in New South Wales and to a lesser extent in Queensland, represents nine- tenths of the thermal value of all the coal mined in Australia, Lignite (brown coal), coming from the Yallourn field in Victoria,. accounts for the greater part of the rest. There are small deposits or sub bituminous coal in South Australia and in estern Australia. Four-fifths of all this coal goes to six vital industries: railways, bunkers, electric power generation, gas production and the cement and steel industries. For many years the demand for coal has increased faster than has pro- duction. While in 1940/41 net exports of coal totalled 324,000 tons, since 1948/9 .considerable imports have been necessary. In 1949/50 net imports were 425,000 tons. As imported coal costs more than domestic coal, it has been subsidized by the Commonwealth Government to bring its cost down to that of New South Vales coal. Australials coal production in 1951 totalled 17,2 million tons of black coal and 7.8 million tons of brown coal (equivalent to 2.6 million tons of black coal), making a total of 19.8 million tons of black coal equiva.- lent, Demand may be estimated at 23 million tons, so that there was a shortage of over 3 million tons, this shortage being met only partly by imports, The shortage, particularly in high arade gas and coking coal. handicapped Australian industry in many ways and was mainly responsible for steel and iron production being below capacity. The Joint Coal Board estimates that by 1Qh total hlq.k n n rnnl v. ments will be 23.9 million tons and that brown coal requirements will be 3.4 million tons in terms of black coal ninivalents making a tntnl raneirement for 27.3 million tons of black coal equivalents. Year by year requirements have been estimated by the Joint Coal Board as followns: TkTP V- -n r. L- f, e% MI V '"i To+ 2 . I. Wales of other black b:cl= Recuire- (Expressed in millions of tons of black coal .L~*j 4*. VJ 1952 17.3 4.3 21.6 203 23.9 1954 19.0 4.9 23.9 3.4 27.3 Even if the development program is carried out in full, production QWll Vsl O ourU Vf requiXemens by about 0 million tons per year. Outline of the-Program New South Wales New South Wales is the principal coal producing state, all other 0+ e -.4- e-+ In-nrn~ -e~1~crojv - rloprlanit, nnv it. fevr thtzir r-n.0 L &~I OJW."J _ VVt br_-C- - -_ - -- - - supplies before the war. Some of the mines are publicly owned and some are privately owned but mentality of the Commonwealth and the New South .'ales Governments. In recent years New South Wales coalfields have been unable to meet the increased demands, anu despite teps alreay taken to reorganzcvaJ. production, some years will pass before they can supply all requirements., Consequently shipments from New South 7ales to olner ZaQs hve ueen our- tailed severely and they have been forced to develop whatever coal they had within their own borders in an effort to gain a measure of independence. The following table shows estimates, in millions of tons, of proauc- tion, requirements and shortages: Production Requirements Shortage Year underground open cut total 1951 11.2 2.2 13.4 16.5 3.1 1952 11.8 3.0 14.8 17.3 2.5 1953 13.1 4.0 17.1 l8.0 0.9 1954 13,2 5.0 18.2 19.0 0.8 As a rapid means of providing a partial though temporary solution of the coal problem, an expansion of open cut coal production from 2.2 million tons in 1951 to 5 million tons in 1954 is being undertaken. This work is concentrated near Wallerawang on western coal fields and near Muswellbrook, Singleton and Cessrock on northern fields. It involves further expenditure on earth-moving and excavating equipment and provision for sidings, dumps, washing plants and other ancillary works. Reserveof open cut coal being limited, an output of 5 million tons a year could be maintained only for a few years. It is expected that, during this time, planning and development of underground mines will take place and that later, underground mines will use machinery and equipment prov.ded temporarily for open cuts. The hard core of the roblem is how to raise production in underground mines when reserves of open cut coal will have been exhausted. The Joint Coal Board proposes' to this end to develop three further mines to increase their nroduction bv a total of 1.A million tons a. var viz: Newstan: production to be increased from 1,400 to 3,000 tons per day, Newcom: a new mine to produce L0O tons per day, Huntley: to produce 2,600 tons per day as a source of coal for the Tallawarra IT 4h e A^ -,1 -P,.4 -r i,v-'+,In . 4',.i,i. -iiv,Am .', i nA ri vi 4 e h1- ry e-n'v' m out by the New south Wales Government to increase their production, by 1958, -Prm -a+ A .1f mi"4I +-nn +n a 1414a +n-e -an -, m ---P- +h-ia om-r M. A. M. WJ JJ V - _'O 3UJ..LL JU ,J P 1 1 11&L0'4 U''US Ve Al 4 4.11 1-± .11-~ railways, power generation and other public utilities. It is further proposed to mechanize and develop the existing mines ctu ij.U11gow ad. K-nj-L'~ Ua ad to. open up aLI'U Ut:Vt:.L.JJ £jjVVV jjIj.4jt-- 4U j U.LLAt..-i CUJA% Burragarong. Many owners of private mines are undertaking programs of rehabilitation and mechanization, te principal mne- 1v-lveu being tuse ---ou-aueu wtn the steel and iron industry. Details of plans for these mines are not yet available. The provision of housing to maintain labor recruitment is a mast important part of the Program. The Joint Coal Board program requires immediately an additional 2,500 workers. The main work in house building is being done by the New South !.'ales Housing Commission. The total expenditure of the coal program in New South Wales over four years is estimated at TA 12 - 15 million("P27 - 34 million) and that of housing at bA 8 million (,8 million). About "l million of equipment from the dollar area will probably be required. Queensland In Queensland, which also has important black coal deposits, some mines are owned by the State, others are privately owned. The Queensland Coal Board, a State authority, has certain supervisory powers over the industry. Total production of about 2.3 million tons being sufficient to meEt demand, development plans are directed mainly to raising the output of special types of coal, including coal for shipment to other States, and to technical improvements in production methods. The program of the Queensland Coal Board comprises the following: West Moreton Field: the expansion and rehabilitation of three existing mines to meet increasing demands of southern Queensland and the develoment of a new mine by the City Electric Light Co. (Brisbane) to supply the power station. The exnpcted increase in nroduction should yield nO000 tnns npr annum by 1951. Collinsville Field: the mechanization of an existing State mine and of a. - 10 - t1o CUOUV COU,vUU oVlb a yetr L'u Zupp±y wue lusut o ufutt. U"IuS.LUIu aUu to provide more coke for Mt. Isa Mines; Callide: the installation of a coal-loading plant at Gladstone, the seaport for Callide. South Australia South Australia's only coal deposits are the sub bituminous deposits in the Leigh Creek field which is being worked by the State Electricity Trust of South Australia, a State authority. The development of the Leigh Creek open cut, now under way, will raise output by 1956 from about 400,000 to 900,000 tons per annum. The coal is used mainly to supply power stations at Osborne and Port Augusta by the State railways and other public utilities. Expenditure over the next few years, not including the cost of improving the railway to and from the field, is estimated at EA 3.6 million ($8 million). Western Australia The development of underground mines by three private companies on the Collie field will increase annual production from 860,000 tons in 1951 to 1,250,000 tons in 1954. Victoria Reserves of black coal are very limited and practically the whole of the black coal output comes from a State owned mine and is used to sunnly the Victorian Railways. There are estensive brown coal deposits in the Latrobe Valley which are owned and onerated by the State Rletricity rommission. The voranm being iindertanlcen by- t.hem Sqtate+. P gn.rnity-% C.mi rmo envisages a large increase in the production of brown coal with the aim ultimately of meeting all Victoria's demands for solid fu.- ThA nrOgram includes the following projects: Yallourn: the expansion of open cuts to increase production from 7 to 10 factory and the development of the towns of Yallourn and Nevborough for the benefit of coal vrorler Eq114 -p-ent rie 1'~ 4 4 -;n vi e I'~ A _. __ -In"+ two new dredges to replace old ones., and another bucket wheel dredge. New I a-.L v. rwe" SS&..A 4-, 3 - 1%fl _&S.J -f~t~ - ..UU _-__ -. A~ .h - -CC AC mrnuVIV we Li L1M UtZVtZAUtuL VLs 7 u=nW9 Upen cut tU pruviu LU"bially ( wAlLI tons of brown coal a year for a new briquette factory to supply a gasifica- tion plant anu inuuurial consumers, No briquette or gas production is likely before 1956, but the cut is expected to produce by 1?57 or 1958 about 10 million tons of brown coal a year, of whicn o milion tonz will be used for briquettes. This project involves removal and disposal of over-burden - 11 - and brie provi-sion of facU.LLO.Lub JV-u.Lg LUFZ LL.L oUppjJy .IJUT'V L, c..% centers. Five or six coal dredges and an overburden spreader will be recuired. A number of small, privately owned mines also propose to increase output. Tasmania No major development scheme is planned, but the Statefs policy aim at expanding coal production (about 240O,000 tons in 1951) to meet local demand as far as possible. Summary Although total cost figures for the entire coal program are not avail- able, on the basis of the cost of the major projects, the total expenditure on mine development, housing and accommodation for mine workers, coal har- vesting and washing facilities and other ancillary work directly connected with coal (but not including transport) may be estimated at about TA 60 - 70 million (4134 - 157 million) of which the sum required in 1952/53 might amount to about RA 20 million ($55 million). On the same basis, the foreign exchange component could be put at BA 12 - 15 million ($27 -- 34 million) of which EA 7 million ($16 million) would represent purchases in dollars. It is clear, however, that the need to restrict capital expenditure and to limit dollar expenditure will neces- sitate substantial reductions in the above figures. - 12 - III. IRON AND STEEL PROGRAM The Iron and Steel Industry The centre of the iron and steel industry in Australia is in New South Wales. Its location is based on the coal fields which provide a good quality coking coal. The other raw materials required are nrincinallv iron ore and limestone. and these are brought by sea from South Australia. The two main production centres are Newcastle wni Part Vambla. The 4nde to y lar ly tP 7he hanA- %d 'o% 4 s completely integrated. It owns extensive iron ore deposits at Iron V -k --A T--- MAnnn a& A-sd4 4 6 Ia s& -& __n a - Kno M"",. &.LW"J r&ona-X_b6., So*Mth.J A0u& JC I t- o -,Van, a 'kw.L 'U CLA~a'~,a steel furnace and a shipyard at the port of Wyalla, South Australia: Lt Uriugs ore in is ouwn ships o N a ste Or Port AAMU, Ume.L s Ta ore with coke made partly from coal raised from its own mines, and manufactures pig iron, Ingots, blooms, billets, and a wide range of rolling mill products. Its plant at Neucastle and Port Kembla includes by-product coke ovens, blast furnaces, open hearth steel furnaces, rolling mills, a ferro alloy plant and ancillary plant. The group is one of the cheapest producers in the world. Its output, however,.is not enough for Australia's growing needs. Its capacity is about 2 million tons of ingot steel a year. In 1951 it produced about 1.2 million tons of finished steel products, whereas demand is estimated at 2,6 million tons. Imports in 1951 amounted to about 0.9 million tons. General Scope of the Program The main part of the program consists of the construction of blast furnaces, open hearth furnaces, steel furnaces, rolling mills and a tinplate plant. Ancillary developments comprise coal mining and transport of raw materials, particularly iron ore. The program, when completed, will substantially increase the total Australian production of pig iron and ingot steel and will provide for appropriate increases in rolling mill capacity to make finished steel products. It will enable Australia for the first time to roll tinplates which will result in a considerable dollar saving. Outline of the Program Naw nth Wlen At Navicastle the main n%ePv a I niiIA anA n nnmtn1qqA in about two years a battery of coke ovens and a new blast furnace with a capaclt of. abou 1,000A tons per Aay. The- compan also nas clnICVS to - 13 - erect a new skelp mill with a capacity of 275,000 tons a year. These plans are in their initial stage and the major work may not be under- taken for some years. At Port Kembla, a subsidiary of the main concern is just completing a new blast furnace with a capacity of about 1,50 tons of pig iron per day and it will soon complete the erection of a new battery of coke ovens. It will also construct new open hearth steel furnaces and other auxiliary equipment in the open hearth plant which will increase steel producing capacity by 500,000 tons of ingot steel per year. This company is under.- taking major alterations and additions to existing blooming, billet and section mills. Its most important project is the construction of a hot and cold strip rolling mill and tinplate plant with a capacity of one million tons of flat steel products a year. includina tinDlate. The work is already well advanced and it is expected to be finished by about 1956. At Port Kembla, another subsidiary company is extending its annnity fInn nllino black pnd enlvanized steAl shAt to more than double its present capacity by about 1956. The main concern is also extending and modernizing its collieries taownm -n4 'wn6hw hndC eMA +^ae -ne AnTy A1L..J- - A ..... 4. --,A DO Zk- .. 4 Ml. UV1t a LLVuL GLILvLou a n&sj% euCv;V rL"%& ua - A nOw ASMe L.&CLU10 and works, including electrical installations, will also take place in steel plants ancillary to those mentoned above9 Western Australia At Kwinana, the main concern plans to build a new steel rolling mill with a capacity of 50,000 tons per year. Commencement of this work is still dependent upon negotiations with the Western Australian Government. In New South Wales, South Australia and Western Australia, the group will provide for additional facilities for the extraction of iron ore and other raw materials for the improvement of transport facilities (including the building of ships, improved mechfnical handling and wharf facilities) and for moving ore and other raw materials and finished products, - 14 - IV. ELECTRIC POVER PROGRAM The Eletric Power Sunnly Positon The generoyand b o ofnlcric p%rwri in AmaliA ic almost entirely in the hands of the six States or their instrumentalities nnr tho nrmnr nitivn+ ,r TkrA"t% 1 =+.i Aia+-4+rr.h4h s a P0 wmwn1 +-h instrumentality. Before the war, installed capacity was 1085 IvI which exceeded by industry, 3270 by domestic consumption, 16% in the commerce and 7% by Uuring the war din the early postwar period, rvnstruction of nen generating capacity has been held up by delays in the delivery of equipment from overseas and by the shortage of labor and materlal, and generation has often been hampered by the shortage of coal. For these reasons the supply of electric power has not kept pace with increasing demand, and restrictions on the use of electricity have been necessary in some states. Particularly in New South Wales, the level of industrial output and efficiency in secondary industries have suffered. Aims of the Program (a) To make good -the present deficiency of installed capacity. (b) To provide for future growth of demand. (c) To provide sufficient surplus capacity to give an adequate operating margin over peak demand. The Program in General The plans prepared by the Commonwealth and State authorities respon- sible for power supply aim at more than doubling power capacity between 1951 and 1956. It is now certain that the completion dates envisaged in these plans will not be met, owing to the necessity of restricting the general level of public investment. The plans of Commonwealth and State authorities are now being reviewed with the object of working out a timetable appropriate to present conditions. Present plans of the Commonwealth and the States taken together show the following position: Power 1951 1952 1953 1954 1955 1956 Maximum firm power by winter of year (M) 1612 1927 2510 3134 3653 4115 Estimated demand 1994 2207 2112 2710 2939 3184 Nominal margin of firm power over estimated demand (MN) .382 -280 498 4424 4714 +931 % of power available -19% -13% 41% 413% 419% 429% Only in 19q6 will there be an adeauate resArve of nanaity, - 15 - The individual plans of the Comonwealth and of the States show the foloowing position: Firm power Fim power available in available in 1952 (MW) 1956 (W) New South -i,ales 622 1538 Victoria 589 1,P7 Queensland 193 343 South Australia 169 329 West Australia 111 156 Tasmania 2P3 522 Commonwealth - 180 Total 10927 4,115 The total cost of the program over the five years, 1951/2 to 1955/6, is estimated at I-A 536 million ($1,195 million), but slowing down the program will reduce this figure appreciably. Outline of the Program New South Wales Metropolitan thermal stations at Pyrmont,White Bay, Balmain and Bunnerone are planned to provide an additional 305,()00 EW by 1955. Plans are also being considered for ordering two 60,000 KW generators for installation at Balmain Station. These generators. if obtained quickly. could be in operation in about three years. Three new thermal stations at Lake Macquarie (Newcastle), Tallawarra nn Take Tllawarra (Wllonvong) and Wallprwanrr (Tithonw) ar. inttndled to sunnlv a total of 460,000 Kv! by 1956 and 600,000 KW when fully developed. These stations will serve industrial enterprises in coal and steel areas and HnmaRtAn nnnqnAr. U4 n+lt,1 ,-+ w ,,v,v'IA %1 + 11 w-i 1W mvw~4i.~arn~ De - n-in ie4 e k"vm t^-n-n - nIIv- v - - ---n rl n n-nnra mimn-i an additional 200,000 K between 1953 and 1956 for local industrial and A -e .+n4^" n o intuii alA oAn AvY mInu TuuT ww%,r 10Cr I herr a -a - bJ onsW,~dSAJ %a-....J - ~J additional capacity of 92,000 KVI by 1956. Both stations are using black coal 'Pro aewSut "a"e Qvaurn-3- and; ovurs-nes eeumn spanu supp Ay L kv.Luvorian LUt.L%L-LU U6V0.L0j00UUILLo LO F.&It:;U LKL) supply 60,.000 VT by 1954. - 16 - Hydro-electric projects at Eildon and Hume reservoirs in central and northeastern Victoria wilJ. yield 120,000 and 50,000 KN respectively by .95/>. These last two projects are ancillary to irrigation schemes and will generate power in summer only. Queensland Two new thermal stations in Brisbane (using Queensland black coal), will develop 150,000 0N. Two regional stations, one each at Rockhampton and Townsville, will provide 22,500 KW each, and one at Howard, 15,000 IW. These, and a small supply from bydro-electric stations at Tully and Somerset, are planned to be available by 1955. South Australia Of a total additional 160^00 K of power to be provided by 1956, 90,000 K is to be installed in the existing thermal station at Osborne "B" Station, Adelaide, and 90,000 KN in the new thermal station at Port Augusta, allowing for 20,000 KWI of capacity to be retired at Osborne "A" Station. West Australia The main addition to power supply by 1956 will be installed in South Fremantle station. The East Perth and Collie stations will be expanded by 1957 or 1958 and a new station will be constructed ai' Bunbury. Tasmania New hydro-electric station will supply by 1956 at Tungatina, 125,COO KW at Travallyn. 79-n00 KWU at Take Enhn- '-00 Th! and at Wavatinah. 95-000 KW. Power production in Tasmania is entirely hydro-electric. Commonwealth - Snowy Mountain Scheme This is a major project with a dual irrigation and electric power fin-tion rdoned +. fod intn the int.er-nnnanted qvstms of New South Yales and Victoria with an ultimate planned capacity of 3,000,000 Ks. It is designed to supplement -1pplie of thermal pwAr= and + meet peak loas T+ will enable the retirement of thermal capacity in due ogurse. By 1954, firt to new Sout i ale, to be folowel Tb s o V first to New South 17bales, to be followed by supplies to Victoria. - 17 - V. RAILYAY IR OGRAM in Australia, wIt is scattered centers of primary and secondary production, railways represent the main link between industrial centers and provide principal means of transporting to local markets or to the seaboard the products of primary industries situated in the interior. Railways in Australia developed on a State rather than on a 'conti.- nental' basis. Each of the States built its own system with an eye to its own needs and local conditions. There are five different gauges. Victorials railways are broad gauge (51 311); estern Australia, Northern Territory, Queensland and Tasmania have narrow gauge (31 6") lines. South Australia uses the broad gauge for its main lines and narrow gauge for the lines carrying lighter traffic,. To link the South Australian railways to the Y:estern Australian railways the Commonwealth Government has built a standard gauge (41 81") line from Kalgoorlie to Port Augusta. There are some 2,200 miles of Commonwealth line and 24,900 miles of line in the six State systems; in addition there are about 600 miles of privately owned line, making a total of about 27,700 miles in all. During the War, railway traffic reached unprecedented levels. After a decline during the first postwar years, traffic has again increased, coming close in recent years to wartime records. Goods and livestock carried (in millions of ton miles)are shown below: 1938/39 h.066 million 1946/47 5,605 I 197/8 5.93) n 1948/49 6,212 H 19)19/q 0 nA 1950/'51 6,.121 I Estimates for 1951/52 show a substantial increase, to 6,668 million ton miles. During the war, maintenance work and replacement had to be deferred wherever nossible and the war ended with the rnilways seanriouly oerstaiTne and badly needing rehabilitation. Since then, little progress has been made in overtaking hacklo. in maintenann work and replacement manlbese of difficulties in securing new locomotives and other rolling stock from domes- tin andi nu-npn_ imn1 iP.q' nnr in, c7c%++jncr lnkv -nt -F- way repair and maintenance. The following table shovotbe quantity of rolling stock of the Common- Uuuuv venUu ) U/i)( LuJOt: ) /)4 Coaches 8,043 8,131 8,072 uoyf- >F.9U Y>0(1 - 18 - 12 years, its quality is low and about 60% of the locomotives are over 35 rIue railways at present are unabe to satsfy transport UVLU1U, eILUre- by curtailing production and causing costly delays in the distribution of goods. Aims of the Program Both Commonwealth and States, in their programs, aim at overtaking backlogs of capital equipment, at expanding their equipment and at improving, standardizing and expanding permanent way in the following manner: (a) by buying locomotives and other rolling stock, (b) by restoring and duplicating existing lines, particularly in coal mining and industrial areas where the demand for railway services has been heaviest, (c) in certain States, such as New South wales, where urgent trans- port problems have arisen in urban areas,by building new lines and electrifying existing lines. In the main, however, these are long term plans. At present, the main emphasis is on the procurement of further rolling stock and on the improvement of existing lines and relatively little con-- struction is contemplated for the immediate future. Consideration of plans for standardization of railway gauges throughout the mainland States has had to be deferred, with the exception of the south-east of South Australia, where work has advanced to a stage which makes completion necessary, and one standard gauge railway being built by the Commonwealth to assist coal transport in South Australia. Outline of the Program New South Wales The Government intends to pay particular attention to the.provision of rolling stock. Nearly one-third of total expenditure for rolling stock up to June 30, 1954 will be for locomotives, including diesel-electric locomotivP from overseas. Turing th nrt two to thrp vPar. ennqidPrah1. PYnPnditurP is planned on new power stations serving railway lines. Electrification, though planned on a wesa mill h dfArr.d until after 19qh. Rwin~tina lines with a high t.raffic HPn.qit- wmill be Himlient.oA and (in~ many cases) quadruplicated during the next three years. These include lines near SydrneyK nnd Newn-casle, whelre Oa a-_n i sta t.raQffic- hasq jt-rasbtd substantially in recent years. Development of the Sydney metropolitan railway system (principally + . P,n+ 4- -ln----n+ nP +1n .wAn,%,w,A Tn1 e+nm nAll m-+e+1" kr postponed until after 1954. - 19 - apart from several new spur lines to serve coal mines and power stations. Victoria Priority is to be given to the provision of rolling stock and that part of the program is to be completed as far as possible within the next three years. Apart from housing for railway employees, most of the remaining part of the program for the next three years relates to the improvement and de- velopment of the permanent way. This covers relaying and reconditioning permanent way and reconstruction of bridges both in urban and country areas. The largest single project is the electrification and partial dupli- cation of the Gippsland line as part of the brown coal development in the Latrobe Valley. Queensland The greater part of the expenditure will be for rolling stock - mainly locomotives (including 33 diesel-electric engines already ordered from over- seas) and wagons, particularly coal wagons. Permanent way projects include the completion of the construction or reconstruction of lines serving the Callide and Blair Athol coal fields and the electrification of the Brisbane metropolitan railway system. Relining work consists mainly of the duplication of existing lines to meet increased demands due to the industrial development in the Brisbane area but it also includes replacement of worn out lines in other parts of Queensland. South Australia Besides replacement of equipment, the plans for the next three years comprise: (a) the conversion to standard gauge of certain portions of perma- nent way and the completion of the Mt. G1ambier line. enablinv tr the railways to carry certain traffic now carried by road, (b) the electrification of the Adelaide metropolitan railways, (c) the extension of the railway in the Port Adelaide area to speed up cargo clearine. (d) the construction of a lin- hAtween Unrgan and Barma tog±ve primary products better access to the seabord and to link up The int lway i J 1Ter Austraa i worse than in other States. - 20 - required for the purchase of new locomotives and other rolling stock, milJ.y tr31.un..Ii works comprise the construction of a new locomotive depot and of new mar-- shallig yards, inldn on to sev the~ Colliet colJ fiLeAl. NoU netw .lines are planned and some uneconomic lines are being closed. Tasmania The permanent way is generally in a condition to meet increased traffic aemands, and most of the expenditure will be on rolling stock. Commonwealth Railways Practically all the expenditure during the next three years will be on the acquisition of rolling stock to serve mainly the Leigh Creek coal field. Orders have been placed for diesel-electric locomotives to serve both transcontinental and northern railways to a total value of 1A 2 million (04.5 million). Proposals for the construction of a new line from Dajarra in northwest Queensland to Newcastle Waters in the Northern Territory to stimulate cattle industry in Northern Australia are under consideration. If approved, the work would involve over 500 miles of new track to cost about EA 14 million ($31.4 million) and diesel-electric locomotives for about EA 2 million (04.5 million), but little expenditure would be incurred before 1953/54. It is estimated that the new line might contribute to increasing beef production by 20,000 tons per annum. Financial Aspects of the Program Original plans of a year ago estimated expenditure at EA 70 million ($156.8 million) per annum over the three years ending 1953/54. Under present conditions, however, expenditure mill have to be reduced and it is likely to be less than bA 50 million (8112 million) per annum. Import restrictions may also curtail the program. The main items of purchases from overseas will include locomotives (both steam and diesel-electric), other rolling stock and a wide range of specialized equipment such as machine tools for workshops and rail maintenance machines. - 21 - VI. ROAD TNSPORT PROGRAM The road transport program has two aspects: The maintenance and development of the road system and the provision of road transport vehicles. In each State there is a central authority or government depart- ment responsible directly for main roads and for the general super- vision and coordination of road policy throughout the State, the construction and maintenance of local roads and bridges being generally the responsibility of local authorities. The total known length of roads in Australia is about 500,000 miles of which. however. only 130,000 miles represent roads with worked surface (30,000 miles of this being covered with bituminous and 1.eOO miles with concrete surface. the rest beine macadam road). 135,000 miles of road are only formed and 237,000 miles have natural snuface only. common with other means of transportation from necessarily deferred -. 4e ^n..a --A nan w,+*- a" by^-Ir A,"4 r ng% %.m-" un-A -P-^r 0e.+oan of materials, manpower, equipment and finance in the postwar years. transportation caused a substantial increase of heavy long distance freight transports on roads. ThIn, apar Frm adding to th trn on the already deteriorated road system, puts emphasis on the need for the reconstruction, repair and mainteninCe of existing roaus, and the building of new roads. The Commonwealth-State Consultative Committee on Road Transport, in a report dated October 1951, reported that there were shortages of labour in all States for work on the roads and that there was a need for imported building and maintenance equipment and material, in their recommendation the Committee urged the restoration and main- tenance to appropriate standards of specifically important roads, the general maintenance of the existing road system, the construction and reconstruction of main and feeder roads, the building of new roads or extensions for specific urgent needs of coal mines, power station or new food production areas, the duplication of carriage ways, the widening of narrow heavily trafficked roads and the carry- ing out of major deviations and alignments. In addition to the LA 84.5 million ($189.3 million) vhich will be provided by the Commonwealth and the States, the proper execution of the road program would require a further LA 23.5 million ($52.6 million) during the three years 1951/52 - 1953/54. - 22 - Only a relatively small proportion of this total is required for imported equipment. it is, however, necessary to import earth- moving equipment, graders, spreaders and industrial tractors, bitumen and timber. The road haulage is in private ownership, and the vehicles used are purchased through normal commercial channels. Most of the heavier road transport vehicles are imported, although to an increas- ing extent they are being assembled by Australian subsidiaries of a few overseas automobile manufacturers. There is a need for imports of heavy road transport vehicles and components to be used in Australian-assembled vehicles. - 23 - VII. NON-FERROUS METALS AND INDUSTRIAL MINERALS PROGRAM Objectives The aim of the program is to increase the production of lead, zinc, tungsten, rutile and zircon for export and to reduce the need for imports by expanding the production of copper, tin, pyrites, mica and asbestos. Outline of the Program Lead and Zinc Lead and zinc are found in the same ores, usually in association of silver and gold and other metals. Most of the lead mined in Australia is produced in the form of con- centrates by four companies operating at Broken Hill. Smelting and refining is done at Port Pirie, Western Australia. The plant at Port Pirie is the. largest in the world and is the only producer of market lead in Australia. Five major projects are planned.at Broken Hill and at Port Pirie to increase lead production capacity from 160.000 tons a year to 200.000 tons a year. The cost is estimated at EA 2.7 million ($6.0 million) of which about one-third will be spent in 1952/3 and one-third in 1953/. The rest will be spent in the following three years. Other developments in lead production are also planned. The only producer of metallic zinc in Australia has its treatment works at Risden. near H4ob-rt. Tasmania. About three-nuarters of the 7inn nonen. trate it uses comes from Broken Hill and the rest comes from mines at Rose- berv and W irmqfnrd on +hh w-F .m+o nm romtn e%P Tmnnin (Thrm s Ann++ has a 31% sulphur content and suLphuric acid is produced as a by-product). P1nsq hn%r )non mnan~ +. i""oa *A". p-rq i,+An byi 2,600 to% n a ft yar byAth treatment of residues. The capital cost of the plant required is over 4A 1 million (C2.2 million). 'PL Q(V II anri rN"%1v-J% nA I~ I h!nrD ,.ex% -P ^ Onr) r)r)t) ~ 4-. 258,000 tons a year, and zinc production from 200,000 tons a year to 230,000 tons a year. At these- leve-ls rduto -411 s+-l 'I Ioa production for lead and 10% above for zinc. Copper Australia uses more copper than she produces and she has been hampered 1u1 presotou plans 2for expansion am al., -Wereasing by 1y>5 mine pro-- duction from the present 16,700 tons to 35,000 tons per annum, euivalent to a slightly lower level of refined copper output. The total investment for mining and processing will be in the order of LA 1.5 million ($393 M-LLi"ln) - 24 - 1 0 11'- T110VAIV jL.Y=L.LJ 41"14V V. UU. U.L VJJ.L VV LAJ U J.a.L60'_" L .LW AJJ w 10,000 tons a year and capacity for refining the concentrates is to be Queensland: At Mount ian, mine producton is to be mrueue to provide additional material for a new copper mill and smelter for fire refined copper. New South W1ales: The only customs smelter and refiner of copper-bearing materials in Australia is at Fort Kembia, New South Wales. Here it is pro- posed to raise smelting and refining capacity by 1954/55 from 14,000 to 19,000 tons a year. The cost adll be about U 750,000 (V,7 million) over the next three years: about one-third of this will be for imported equipment. Tin Tin production in Australia has fallen from 3,100 tons in 1939 to about 2,000 tons in 1951. Whereas before the war Australia exported tin, rising domestic demand and declining production has turned her into an importer. The large tinplate rolling mill planned within the iron and steel development program is expected to raise domestic demand to over 51000 tons a year and the development of tin production is planned to provide to the largest possible extent for the domestic demand. A large ore body in Ardlethan, New South Wales, has been explored and it will be developed during the next few years. It is also intended to open up new tin areas in northern Queensland by dredging. Total investment in tin development will be of the order of EA 2 million ($.4 million). Aluminum Australia depends entirely on imports for its supplies and in 1950 imported 8,758 tons, mainly from Canada. Present requirements are well in excess of supplies and are growing. The Australian Aluminum Production Commission is erecting a plant at Bell Bav in northern Ta mania with a cacitv of IALOOO tnns npr annum. The Boyer process will.be used for pure aluminum production from crude bauxite and the 1all-Nerault Trocess for electrolytic aluminnm from .0nmina. Pleb tric power will be taken from the Trevallyn hydroelectric power station which is bein- built nrimarily to meet the reunirements of t.he aluminum industry (see Program IV). Production is expected to begin in 195b. Workable deposits of bauxite have been proved in New South Wales, of northern New South Tales, where reserves of over 8 million tons have been brought under the COMmi sion, s control. e Be '-lI tay plan --4- star b1--&--&U using high grade imported bauxite. As domestic bauxite becomes available, .LV V..l o do.meLsU iVcVIL bujxj.Lte LJdLU s_; .IA be usedLl ultimately only domestic bauxite would be used. - 25 - J_U seems 'l1Kely that Dy the t.uLme P.LUUULV1 UMMIU0, ftutr,'.L-n demand will be sufficient to absorb the plantrs entire production. The total cost, which will be provided in equal shares by the Common- wealth and Tasmanian Governments, is estimated at !A 7.2 million (10.2 million) of which BA 3.5 million ($7.8 million) has been spent already. Approximately EA 2 million ($4.4 million) will be required for imports of equipment during the next four years of which about one-third is expected to require dollars. Tungsten Australia exports tungsten. It is proposed to increase by 50% capacity for treating scheelite (tungsten ore), mined at King Island, Tasmania. Equipment is also required Yor small mines in the Northern Territory and New South Tiales. Pyrites Pyrites are required for the manufacture of sulphuric acid. The largest mining development to exploit pyrite deposits is planned at Nairn, South Australia, where it is hoped to produce enough pyrite con- centrates to make 30,000 - 40,000 tons of sulphuric acid a year. Other developments of pyrites are planned at Norseman, Yestern Australia; at Mount Lyell, Tasmania, where it is a by-product of the flota- tion of copper ore: and at Mount Morgan, Queensland. The production will depend on sufficient transportation being avail- able and on the successful development of capacity to covert pyrites into sulphur (see Proaram VIII). The canital exnenditure is estimated at about LA 2 million (L.h million). Other Developments These include the opening up of deposits and the expansion of the n-rnHnion of ntiornnn at Rlun qnn in wentern Aumtralia of nqhPstn at Wittenoom Gorge, fluorspar in Northern Queensland, and beach sand minerals Financial r.cst o-f t.he Progam nllr' +,.4 1 jo,. ^- Z. ~~h ~'+~ -tA,.,f A 91- It + he v T una ._ves n t is to 25 million (p52.6 to 56 million) over the next three to five years. The wil ~ lJ. . be require Lor puh fromL.ate dolla UrJ of wi JLA.L 2 mill will be required for purchases from dollar sources of which TA 2 million k,_-494 WU.LL.L-LV4J VL.L.L LJt; .L- . F.V_ rVUUD~ .LU and ~ the '. Lvov .J. L AUI5.)L consuniable ma l O - 26 - VIII. INDUSTRIAL DEVELOPMENT PROGRAM General Outline of the Program As most of the industrips coneArned are privately owned. their development plans may not become known until they make them public. Informa- tion reenived from the Commonwa1+.h nvernment, connqn1ntly. refers to the general economic need and the general outlines of the possibilities of dP-VP1onmPnt. r4+thsr +.h-qn n ananfit anAAd +.oQi1 o nr% lans. ~an n " rA nil 4 A i4vhi+,4- -Nn t4-Pn mv,,+v+ i' ~ 44rv' n ,~ ment. A number of basic chemicals are hard to obtain abroad and are very - _0 -AeS~ *Wi. .tf4.4flt.VIU 0 5., 1 UIAQ a& I WWU VS LU AU.tL WWt QmWo U j. .% sa growing needs of engineering and manufacturing industries and of agriculture. Petroleum refining so far has developed in Australia in a small way WAA t ViL~ LS W41 J1V II~VVV;L, 11CZ C% V.LUt c11Vi.Lce J vj iJL crude oil and can secure the petroleum products it wants. Modern refineries AU.L" tJ1hus be of. vitlUGJ -imprujJJance.. L.o AiUSE'l-aA. 0LL1Ju-10 0L Liv uul 1UUL 1 LSLEU-J11 New Guinea, where prospecting is in progress, the existence of refineries in AUl-olUJ.l.a WJJ. "Cl UL0 &U:Ctu CIYAUCi~ges we manulfacture f fabricated shapes of non-ferrous metals could create an important link between her copper production and the electrical equipment industries. in the basic engineering fields, planned development in earth moving and construction equipment and transport industries would meet the increasing demand created by the mechanization of agriculture, by public works aiming at the development of natural resources and by the need to improve timber production. As in the past, Australia still depends primarily on the U. 6. and on the U. K. for its supply of heavy transport vehicles. This dependence always created problems of supply and suitability and also of replacement parts. Development of the motor vehicle industry in Australia has progressed considerably but it still needs the support of domestic production of components of motor vehicles (e.g. steel forgings), greater facilities for the production of heavy duty motors and improved capacity for producing spare parts. Typical Development Australian agriculture relies heavily on superphosphate to maintain production. The manufacture of this fertilizer requires sulphuric acid, the manufacture of which accounts for about 84% of Australia's consumption of sulphur. Manufacture of anmonium sulphate accounts for a further 8% of sulphur consumption. In the past, about two-thirds of the total sulphuric acid used has been made from imported brimstone (elemental sulphur). The remainder has been manufactured from indigenous sulphur-bearing materials. Although there are ample resources of sulphur-bearing materials such as iron writes in Australia, there are no known deposits of elemental sulphur. - 27 - In recent years, the changed world supply position of brimstone has necessitated the adoption of a program in Australia for the conversion of brimstone-burning sulphuric acid plant to the use of indigenous materials and the construction of additional acid-manufacturing capacity to meet expanding needs. This proaram involves large outlays of capital and provision of sub- stantial quantities of plant, and is expected to require some years for comnletion. "ork has. howevpr. startPd on th- tonvPr.ion and Pxnansion of eight sulphuric acid plants in New South Wales, Victoria, Western Australia and South Australia, Tnder n-ra-imilina mnMA.n the TT_ R A- i +.he nrincinal qnirce of supply of sulphur, and is almost the only assured source. Hence replacement of dollar saving. Developmentsnow under way are estimated to reduce the need million a year in dollar imports. An important company engaged in zinc production and refining by the e .L-r.LL JVL J. FI %AO LO UU.L_LU.L16 42 1LCUIIJ 01 LL.Q"U1AX I13WUCa1L1.LCk U L'J 1W U W 50,000 tons of ammonium sulphate a year, enough to cover Australian needs. in growing sugar cane. Work has been proceeding for about two years and 'is A large company producing inuutrial g5es plan to buld a pilant ou produce calcium carbide for the production of cheap acetylene for welding and steel cutting, to make pojZrv3nyl chloride and various chemical solvents. I certain technical problems related to the use of brown coal can be solved, the plant will be built in Victoria and will use brown coal as a source of carbon and power. It would meet by 1956 most of the expected domestic demand. Most of the 15 cement works of the Australian cement industry are being enlarged. Three new plants are being built and new kiins are being built at five works. Within the next three years total cement capacity will be increased from about 1,6 million to about 2 million tons per annum. A gas company in Victoria has just started work on a large brown coal gasification plant at the brown coal deposits in the Latrobe Valley to supply Melbourne's gas requirements. This project, which should be completed by 1956, will relieve Melbourne of its dependence on about 600,000 tons of black coal per annum from the New South Wales coal fields. The Australian subsidiary of an American oil company proposes to build a refinery of a capacity of about 84,000 tons of refined petroleum per annum. The plant, which will be erected conveniently close to tanker berths, would be a modern plant with cracking facilities. It should be completed in three to four years and will supply a variety of petroleum products. - 28 - A large company proposes to increase its capacity to process copper wires and tubes by installing further equipment for tube drawing and for vire drawing and stranding. The work, to be completed by 195h, will provide copper conductors for power distribution and industrial use and high tolerance tubes for industry. The same company proposes to double bv about June. 1953. its capacity for drawing, stranding and reinforcing steel cored aluminum cable for electric Dower distribution. Eventuallv it will rely on aluminum from Tasmania, thus saving copper. An American firm plans to commence the production in Australia of diesel-engined crawler trartnrq of 33 madmum drAw-har h-n- Thp nlant- to h located in Victoria, would be an assembly plant initially. It is expected to commence nroduction in a vnrl. time The Autralian q1hJqJMr'v of A r.AnAdiAn Auitombhile mnAnuifactulringr concern has for some time been following a program aiming at the production in Australin of V Type mo+.rve rhicle The final C+ae in ths program involves the manufacture of engines capable of powering large passenger cars and trucks a modern mechanized foundry and the expansion of machine shop and assembly -P a^l4++J + at eistin rorks a Geelo n VWhU ma. 1Q46V V.hL yJA".U.LAWJ.'L W.L major components for motor vehicles, especially heavy duty engines. A forging company is building a factory for the forging of enginee:ring compUUento .VL mUr vLL _L UU 4L1rU. Lu 1UU eU.L:n UlU . u LUrg.L ugI for major engineering projects. It should be completed during 1953. A steel sheet fabricating firm is building factories or modernizing existing ones in five States to increase the production of steel drums up to 4-gallon size. Besides their many uses in industry and commerce, steel drums are important in the distribution of oil, allowing it to be shipped in bulx, Expenditure on these works over three years is estimated at ;A 300,000 to A vuuou toof to o0.9 mi.llion) per annum, A large canning company is about to begin the erection of a food canning and bottling factory in Victoria. The total cost will be about ;A 3 million (06.7 million). The factory will process large quantities or roodstur and should come into production during 1953/54. Financial Aspects The total annual cost of the major projects known to be in progress or planned is estimated at about 1A 33 million ($73.9 million) per annum. *This figure, however, is no more than a broad indication of the order of magnitude,