Australian business leaders push through crisis at Canberra conference
At the 7th annual Australian Chamber of Commerce conference in Canberra, Mr B. L. Nicholson warned of serious difficulty facing enterprises amid a broader economic crisis. Prime Minister Fraser pledged action, while schemes of arrangement and a five-year moratorium were discussed, with observers noting the observer, tied to Max Newsom's group, publishing the report.
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Private investment drives 13 percent March quarter growth
Private investment in stocks and new plant equipment lifted the economy to a 13 percent annual growth rate in the March quarter. Net exports lagged while private and public consumption and building investment remained to support the rise. corporate income stayed around 9 percent of national income.
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Government to set new wool reserve price level
Minister for Primary Industry Mr Sinclair announced plans to establish a new wool reserve price during the next selling season. He noted the price would reflect current nonfarm output growth and the base price pressures, while outlining ongoing discussions with Australia and related conferences on the reserve price and holding program.
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Ecommendatons
Pound Slide Continues as Healey Refuses Immediate Cuts
London reports show the pound weakening further on foreign exchange markets opening, dipping briefly to the 1.70 level against the dollar before recovering slightly. A Bank of England style statement by Chancellor Healey suggested no immediate major spending cuts, with government borrowing seen around 1.5 billion abroad, contributing to the pound's continued pressure and a roughly 13 percent drop from three months prior. Australia’s dollar exchange rate is cited at 0.9845, reflecting wider regional currency moves.
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Private sector disillusionment with Fraser government promises
Private industry expresses clear disillusionment as Fraser's administration abandons or delays major election commitments. The Prices Justification Tribunal and Industries Assistance Commission remain in flux while federal regulation and monetary policy faces criticism. Business groups, unions, and industry bodies voice alarm at stalled reforms and ongoing regulatory hurdles amid broader economic uncertainty.
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Canberra ministers and economic policy in focus
Reported tensions in the Australian government reflect internal power dynamics over economic policy. Analysts note the influence of the Minister for Employment and Industrial Relations and the Prime Minister on portfolio control and budget choices, with potential shifts in accountability across the public service.
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