Just as labor is in short supply, so is mining management, for here the demand has truly outstripped the supply. Although we have been reluctant to do so, we and other American mining companies have found it necessary to fill many of our management positions with people brought from this country, since we simply could not find qualified Australians available and willing to leave their present employers. Two features of the Australian tax law have a dampening effect upon key people in the middle income brackets and make them reluctant to risk a change in employment. First and most obvious is the substantially higher rate of taxation to which they are subjected. But perhaps even more significant are the wide range of levies against the employee and employer for a broad spectrum of social benefits imposed by statutes, as well as those otherwise assumed and financed by the employer, and having the common effect of reducing both the employee's incentive for further advancement and the employer's ability to compete. Money is a problem for mining everywhere, but is particularly acute in Australia, where the size of the investment required to take a position in Australia's mineral industry is unusually large and the local supply of risk capital is severely limited. Any nation growing and developing as rapidly as Australia must turn to the more industrially developed nations for help and import much of the capital required. The two major sources of outside capital have been the United Kingdom and the United States, but each of these countries is now faced with a serious problem in their balance of payments and has taken steps to protect its own currency by restricting in some measure the outflow of capital. With the flow of funds from abroad diminished, -12-