THE LEGACY OF JOHN KERIN A LABOR PARTY MAN OF RURAL POLICY BASED ON SCIENCE by Neil J. Inall Doctor of Philosophy 2015 Western Sydney University ACKNOWLEDGEMENTS The author of this study wishes to acknowledge the very significant support and guidance in developing this thesis by Professor W Bellotti who holds the Vincent Fairfax Chair in Sustainable Agriculture and Rural Development at the Hawkesbury campus within the University of Western Sydney at Richmond, NSW, Australia. The study would not have been attempted or completed without Professor Bellotti’s encouragement and guidance over five years. Acknowledgement is also due to the University itself for support. This researcher wishes to thank his wife and family for their ongoing tolerance and guidance over many days and nights. Without them the project would never have been contemplated. I also wish to acknowledge the year on year support by John Kerin for this project. He has answered innumerable questions and provided a copy of a key submission that gained the support of the Hawke Government for the establishment and financial support of the RRDCs. John Kerin entrusted me with bound copies of the numerous press releases and speeches made while he was Minister for Primary Industries and later Minister for Primary Industries and Energy as well as those speeches he has made since leaving Parliament. He has also provided copies of his extensive recollections in dealing with industry officials and state governments in the reform process he administered. Others who are warmly acknowledged are: • Dr Benjamin Taaffe • The late Dr Geoff Miller • Bob Whan • Tony Gleeson • Julienne McKay • David Campbell • Gordon Gregory • The late Philip Toyne • Dr Brian Fisher • Tim Lester • Dr Linda Botterill • Craig Miller • Robert Macadam • Hamish Inall • Charles McElhone • Margo Mason DECLARATION This work contains no material which has been accepted for the award of any other degree or diploma of any University or tertiary institution and, to the best of my knowledge and belief, contains no material previously published or written by another person, except where due reference has been made in the text. I give consent to this copy of my thesis, where deposited in the University Library, being made available for loan and photocopying. ………………………………………………… Neil Inall 2015 TABLE OF CONTENTS ACKNOWLEDGEMENTS DECLARATION TABLE OF CONTENTS ...................................................................................................................... I LIST OF FIGURES .......................................................................................................................... VII ABBREVIATIONS ............................................................................................................................ IX NOTE .................................................................................................................................................. XI EXPLANATION REGARDING QUOTATIONS FROM JOHN KERIN ................................... XIII ABSTRACT ...................................................................................................................................... XV INTRODUCTION ........................................................................................................................... XXI CHAPTER 1: CHARACTERISTICS OF AUSTRALIAN AGRICULTURE THAT SHAPED JOHN KERIN’S APPROACH TO RURAL RESEARCH AND DEVELOPMENT ................. 1 1.1 INTRODUCTION ................................................................................................................................... 1 1.2 ECONOMIC VALUE ............................................................................................................................... 2 1.3 EXPORT RETURNS .............................................................................................................................. 2 1.4 DOMESTIC RETURNS .......................................................................................................................... 4 1.5 FOOD IMPORTS .................................................................................................................................... 5 1.6 INDUSTRY STRUCTURE ....................................................................................................................... 5 1.7 SUBSIDIES ............................................................................................................................................ 6 1.8 POLITICS OF THE FARM INDUSTRIES IN AUSTRALIA ..................................................................... 7 1.9 TECHNOLOGY ...................................................................................................................................... 8 1.10 PRODUCTIVITY .................................................................................................................................... 8 1.11 CONCLUSION ..................................................................................................................................... 10 CHAPTER 2: FARM BOY BRANCHING INTO POLITICS ................................................... 11 2.1 INTRODUCTION ................................................................................................................................ 11 2.2 AUSTRALIA IN THE 1930S ............................................................................................................. 11 2.3 EARLY YEARS .................................................................................................................................... 12 2.4 THE FARM AT YERRINBOOL ........................................................................................................... 13 2.5 OFF TO SCHOOL ............................................................................................................................... 15 2.6 HIGH SCHOOL ................................................................................................................................... 16 2.7 A HINT OF POLITICS........................................................................................................................ 17 i 2.8 FOLLOWING FATHER’S EXAMPLE .................................................................................................. 18 2.9 A LOVE OF FARMING ....................................................................................................................... 19 2.10 STUDYING AGAIN ............................................................................................................................. 20 2.11 AUNT RUTH’S INFLUENCE ON KERIN’S POLITICAL LEANINGS ................................................. 21 2.12 LIFE CHANGING ENCOUNTER ........................................................................................................ 23 2.13 MORE CHANGE FOR KERIN ............................................................................................................ 24 2.14 STRONG PRESSURES ON THE YOUNG FARMER ............................................................................ 26 2.15 CONCLUSION ..................................................................................................................................... 26 CHAPTER 3: POLITICS AND RURAL POLICY ..................................................................... 29 3.1 INTRODUCTION ................................................................................................................................ 29 3.2 MAJOR POLICY IMPERATIVE – PRODUCE MORE ......................................................................... 31 3.3 THE EMERGENCE OF THE COUNTRY PARTY ................................................................................ 32 3.4 CO-ORDINATING THE STATES FOR NATIONAL FARM POLICY.................................................... 34 3.5 DOMINANCE OF THE COUNTRY PARTY IN FARM POLICY ........................................................... 37 3.5.1 Protectionism ............................................................................................................................... 37 3.6 TWO MAJOR POLICY ISSUES .......................................................................................................... 39 3.6.1 The Policy of Farm Price Supports ..................................................................................... 39 3.6.1.1 Price Support for Wool and Wheat ....................................................................................................... 44 3.6.2 Soldier and Closer Settlement ............................................................................................... 50 3.7 SENIOR ECONOMIST PINPOINTS POOR POLICY OUTCOMES ..................................................... 51 3.8 NUMEROUS ENQUIRIES INTO RURAL POLICY ............................................................................. 56 3.9 WARNINGS IN 1944 ABOUT SUBSIDISED PRICES AND CLOSER SETTLEMENT ...................... 59 3.10 LABOUR SETS UP ANOTHER RURAL POLICY ENQUIRY ............................................................. 61 3.11 POLICY PAPERS BY THE NATIONAL FARMERS’ FEDERATION .................................................... 65 3.12 OTHER GOVERNMENT POLICIES SUPPORTING RURAL AUSTRALIA ......................................... 66 3.13 AGRICULTURAL ECONOMISTS: TURNING FARM POLICIES UPSIDE DOWN ............................ 69 3.14 BOB HAWKE AND HIS POLICY REFORM GOVERNMENT ............................................................