Australian Prime Minister, Malcom Fraser, said in Canberra on Monday (29 November) that the decision to devalue the Australian dollar by a record 17.5 percent had followed his government's failure to stop capital flowing from the country.
GV ZOOM IN: Prime Ministers residence, Canberra, Australia.(silent)
SV: activity on stock market in Sydney. (2 shots)
SV: building society offices (6 shots)
SV: electrical products and people shopping (5 shots)
GV AND CU: Australian and overseas cars (6 shots)
SV: travel agents shops (4 shots)
HUMPHERY (TRANSCRIPT): "The Sydney stock exchange went wild when trading opened this morning. News of the devaluation electrified the market and prices shot up. Most brokers admitted they'd been caught on the hop by the announcement. Some were resentful after Phillip Lynch's recent statement that devaluation jus isn't on."
STIRLING: "Home buyers are likely to be hard hit by the increase in interest rates and the hinted-at credit squeeze accompanying devaluation. Sid Einfeld, (phonetic) State Minister for Consumer Affairs and Co-operative Societies, says he expects building societies to up their loans rate by half a per cent. That will add another nine dollars to the monthly repayments on an average home loan. Our state roundsman Paul Mullins reports that Mr. Einfeld (phonetic) is also concerned that unscrupulous retail traders may try to cash in on devaluation by making premature price adjustments."
MULLINS: "One of the real fears is that devaluation ripp-offs could mean a big increase in Christmas bills. It shouldn't but already the complaints are coming in. And consumer groups are worried that some traders may take advantage of the situation by pricing on the 17-and-a-half increase to coincide with the Christmas buying spree."
STIRLING: "To the man in the street one of the most noticeable effects of devaluation will be seen in the motor industry. Australia already has one of the world's highest car price structures and with the large slice of the local markets going to overseas manufacturers, the extra 17-and-a-half per cent slug will have repercussions throughout the trade. International travel arrangements have been thrown into chaos and travel agents today were besieged by customers wanting to know how they'll be affected. They say air fares are not likely to go up until the International Air Travel Association meets in April. But other cost aspects, including accommodation, tours and monetary exchange, will bear the full brunt."
Australian trade and industry officials said in Canberra on Monday that they were confident the nation's exports would rise following the devaluation of the dollar. Leaders of industry are said to be planning concerted sales campaigns overseas to boost Australia's exports, which during 1975-1976 earned a record 9,555.8 million dollars. But at the same time hey are already pressing the Government to provide export incentives in the way of subsidies, and to lower tariffs to assist manufacturers.
SONYA HUMPHRIES/JIM STIRLING/PAUL MULLINS
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Background: Australian Prime Minister, Malcom Fraser, said in Canberra on Monday (29 November) that the decision to devalue the Australian dollar by a record 17.5 percent had followed his government's failure to stop capital flowing from the country. In Sydney Channel Ten 10 reporters Sonya Humphries, Jim Stirling and Paul Mullins investigated reaction from the stock market - which responded favourably to the move -- and the influence of devaluation on consumer and service industries most likely to affect the man in the street.