Other entries featuring Bert Kelly»

Bert Kelly, April 13, 1979. Economics Made Easy (Adelaide: Brolga Books, 1982), pp. 104-06, as “Iron and Steel (3)”.

Eccles recently paid one of his rare visits to Fred’s farm and he has been behaving in a queer way. He usually demands to see Fred’s account books as soon as he gets out of the car, but on this occasion he took no interest in Fred’s financial well-being. Instead, as soon as he had polished off a plate of Mrs Fred’s scones with jam and cream (he has a queer human streak in him) he got a little mat out of his case, went outside, faced his mat and himself towards the east and sternly invoked the aid of Allah.

This unusual behaviour upset Fred’s dog who had never seen anything like this before. So he (the dog) started howling to keep Eccles company. So Fred rang to ask me to come over quickly in case he (Eccles) became violent.

When I arrived, Eccles was explaining the reasons for his strange behaviour. And every now and again he would reverently pat a report of the Industries Assistance Commission (I.A.C.), which he evidently regarded as something handed down from Mount Sinai. I couldn’t help remarking that this would be a lot quicker than sending it by post. Fred winked at me and I knew we had to humour Eccles and hear what was on his mind or else he would get to work on his mat again. So we sat back and listened.

Eccles says that the draft report on Iron and Steel Products just published by the I.A.C. is a most significant document. The tariff protection that B.H.P. now receives is low, much lower than is usual for Australian protected industry. But the I.A.C. recommendation is for these low tariffs to be still further lowered and that B.H.P. be assisted instead by a set of subsidies of various kinds which are designed to encourage the company to be more export orientated.

Eccles then gave us a long lecture about how this recommendation was in line with the government’s frequently expressed view that all industries would do better for themselves as well as Australia if they were to be more outward looking. And when Eccles explained it, we could see that, if B.H.P. went bald headed for exports, then the company would get the extra through-put that would justify the installation of the most modern and sophisticated labour saving saving equipment and so be able to get its costs down even further.

B.H.P. has been, is now and no doubt will continue to be a considerable exporter if things are left as they are. But the I.A.C. says that it is not enough for B.H.P. to be content to only export when the opportunity offers, the company should do its planning and investment with the clear objective of getting into the export market, boots and all. By so doing, it would not only help Australia by improving our balance of trade and by supply other industries with cheaper steel, but it would also help the company.

There were many figures and tables in the report, the most interesting fact for me was that B.H.P. had lost far more than it had gained from the past policies of protection. The I.A.C. estimated that, for B.H.P., the cost of protection outweighs the benefits by approximately $150 million a year. I have always thought that B.H.P. got clobbered by the tariff in the same way as we farmers do, but I had not realised that it suffered to that extent.

Eccles is desperately anxious that B.H.P. accept the challenge posed by the draft report. If the company goes to the final hearing determined to go back to the old ways of being helped, then he despaired that Australia would ever develop as the country should. And we have been told over and over again that we must be more outward looking if we are to have a more vital and vibrant economy, instead of battening on one another as we do now. B.H.P. is such a respected and powerful organisation; that it refuses to pick up the challenge means we have an awful sinking feeling that lesser companies will never do so and we will continue as a second class country forever.

So Fred and I can see now why Eccles was so busy on his prayer mat. After talking it over we decided to join him there. But we made our supplications to the shades of Essington Lewis and other giants of B.H.P.’s proud past. I don’t think they would have backed away from the challenge posed by the I.A.C. Report. And we hope and pray that today’s leaders of B.H.P. will not let Australia down either.

(in order of appearance on Economics.org.au)
  1. Bert Kelly on Journalism
  2. Move for a body of Modest Members
  3. Modest Members Association
  4. Bert Kelly's Maiden Parliamentary Speech
  5. Government Intervention
  6. 1976 Monday Conference transcript featuring Bert Kelly
  7. Petrol for Farmers
  8. Some Sacred Cows
  9. Experiences in Parliament
  10. Spending your Money
  11. Who needs literary licence?
  12. A touch of Fred's anarchy
  13. Supply and Demand
  14. Bert Kelly on Disaster Relief
  15. Bert Kelly Wants to Secede
  16. Under Labor, is working hard foolish?
  17. An Idiot's Guide to Interventionism
  18. Bert Kelly Destroys the Side Benefits Argument for Government
  19. Bert Kelly gets his head around big-headed bird-brained politics
  20. First Modest Member (Bert Kelly) AFR Column
  21. Second Modest Member (Bert Kelly) AFR Column
  22. Third Modest Member (Bert Kelly) AFR Column
  23. Fourth Modest Member (Bert Kelly) AFR Column
  24. Fifth Modest Member (Bert Kelly) AFR Column
  25. Sixth Modest Member (Bert Kelly) AFR Column
  26. Bert Kelly on the 2011 Budget and Australia's Pathetic Journalists and Politicians
  27. Bert Kelly, Bastard or Simple Sod?
  28. Liberal Backbencher Hits Govt. Over Import Restrictions
  29. Bert Kelly feels a dam coming on at each election
  30. Bert Kelly Enters Parliament
  31. Why take in one another's washing?
  32. Bert Kelly breaks the law, disrespects government and enjoys it
  33. Gillard's galley-powered waterskiing
  34. Can price control really work?
  35. Should we put up with socialism?
  36. We're quick to get sick of socialism
  37. Time the protection racket ended
  38. Can't pull the wool over Farmer Fred
  39. People not Politics
  40. Bert Kelly admits he should have had less faith in politicians
  41. Labor: a girl who couldn't say no
  42. Why leading businessmen carry black briefcases
  43. Ludwig von Mises on page 3 of AFR
  44. Mavis wants the Modest Member to dedicate his book to her
  45. Time to Butcher "Aussie Beef"
  46. Bert Kelly reviews The War Diaries of Weary Dunlop
  47. Bert Kelly reviews We Were There
  48. Tariffs get the fork-tongue treatment
  49. Bert Kelly reduces government to its absurdities
  50. Politician sacrifices his ... honesty
  51. It's all a matter of principle
  52. Bert Kelly Destroys the Infant Industry Argument
  53. Bert Kelly Untangles Tariff Torment
  54. Bert Kelly resorts to prayer
  55. Eccles keeps our nose hard down on the tariff grindstone
  56. "Don't you believe in protecting us against imports from cheap labour countries?"
  57. Even if lucky, we needn't be stupid
  58. Great "freedom of choice" mystery
  59. Small government's growth problem
  60. Tariffs Introduced
  61. More About Tariffs
  62. Sacred cow kicker into print
  63. Modest Member must not give up
  64. Traditional Wheat Farming is Our Birthright and Heritage and Must be Protected!
  65. Bert Kelly brilliantly defends "theoretical academics"
  66. The Society of Modest Members
  67. John Hyde's illogical, soft, complicated, unfocussed and unsuccessful attempt to communicate why he defends markets
  68. Modesty ablaze
  69. Case for ministers staying home
  70. The unusual self-evident simplicity of the Modest Members Society
  71. Animal lib the new scourge of the bush
  72. The Association for the Prevention of Cruelty to Krill
  73. Repeal economic laws, force people to buy new cars and enforce tariffs against overseas tennis players
  74. Thoughts on how to kill dinosaurs
  75. Let's try the chill winds
  76. Taking the Right's road
  77. Bert Kelly: "I did not try often or hard enough"
  78. Bert Kelly "lacked ... guts and wisdom"
  79. A look at life without tariffs
  80. The Gospel according to Bert
  81. Tiny note on Bert Kelly's column in The Bulletin in 1985
  82. Why costs can't be guaranteed
  83. Hitting out with a halo
  84. Paying farmers not to grow crops will save on subsidies, revenge tariffs, etc
  85. "The Modest Farmer joins us" | "How The Modest Farmer came to be"
  86. Bert Kelly Destroys the Freeloading Justifies Government Argument
  87. Government Intervention
    vs
    Government Interference
  88. Bigger Cake = Bigger Slices
  89. Bert Kelly on the Political Process
  90. Charabanc: Part 1
  91. Charabanc: Part 2
  92. Charabanc: Part 3
  93. Relationships with the Liberal Party
  94. Tariffs = High Prices + World War
  95. Bert Kelly's Family History
  96. Bert Kelly's Pre-Parliament Life
  97. Why Bert Kelly was not even more publicly outspoken
  98. WEATHER IS USUALLY UNUSUAL
  99. How to stand aside when it's time to be counted
  100. How the Modest Member went back to being a Modest Farmer
  101. My pearls of wisdom were dull beyond belief
  102. Bert Kelly on Political Football
  103. Ross Gittins Wins Bert Kelly Award
  104. Interesting 1964 Bert Kelly speech: he says he is not a free trader and that he supports protection!
  105. This is the wall the Right built
  106. Has Santa socked it to car makers?
  107. Is the Budget a cargo cult?
  108. Will we end up subsidising one another?
  109. Do we want our money to fly?
  110. Can a bear be sure of a feed?
  111. How to impress your MP -
    ambush him
  112. The time for being nice to our MPs has gone ...
  113. Don't feel sorry for him -
    hang on to his ear
  114. Trade wars can easily end up on a battlefield
  115. Tariffs Create Unemployment
  116. Bert Kelly recommends Ayn Rand
  117. Bert Kelly's Satirical Prophecy: Minister for Meteorology (tick) and High Protectionist Policies to Result in War Yet Again (?)
  118. Bert Kelly in 1972 on Foreign Ownership of Australian Farmland and Warren Truss, Barnaby Joyce and Bill Heffernan in 2012
  119. Parliament a place for pragmatists
  120. Of Sugar Wells and Think-Tanks
  121. Bert Kelly: "I must take some of the blame"
  122. A Modest Farmer looks at the Problems of Structural Change
  123. Government Fails Spectacularly
  124. Know your proper place if you want the quiet life
  125. Bert Kelly on political speech writers
  126. Perish the thawed!
  127. Modest Farmer sees his ideas take hold
  128. Max Newton: Maverick in Exile
  129. Why no-one nails the Big Green Lie
  130. A case for ministerial inertia
  131. Why politicians don't like the truth
  132. Ominous dark clouds are gathering
  133. Better to be popular than right
  134. Crying in the wilderness
  135. Ivory tower needs thumping
  136. Bert Kelly asks, "How can you believe in free enterprise and government intervention at the same time?"
  137. Rural Problems
  138. Unholy state of taxation
  139. Boring economics worth a smile
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