House of Representatives
28 March 1946

17^th Parliament · 3^rd Session

DEATH OF THE HONORABLE SIR ROBERT “WALLACE BEST, K.O.M.G
STEVEDORING INDUSTRY
QUESTION
- RE-ESTABLISMENT
QUESTION
- SALVAGE COMMISSION
QUESTION
- MOTOR VEHICLE MANUFACTURE
QUESTION
- COAL-MINING INDUSTRY
QUESTION
- BRETTON WOODS AGREEMENT
QUESTION
- COMMONWEALTH BANK
INTERIM AIR FORCE
QUESTION
- FAT STOCK SALES AT MELBOURNE
QUESTION
- CIVIL AVIATION
QUESTION
- FLOOD DAMAGE
QUESTION
- STONY GROUND
QUESTION
- OPIUM SMUGGLING
QUESTION
- COTTON GROWING
QUESTION
- ARMED FORCES
QUESTION
- AUSTRALIAN TENNIS TEAM.,
QUESTION
- MEAT INDUS TR Y
BUFFALO FLY
SUGAR AGREEMENT BILL 1946
- Second Reading
COMMONWEALTH CONCILIATION AND ARBITRATION BILL 1946
JUDICIARY BILL 1946
COMMONWEALTH PUBLIC SERVICE BILL 1946
- Second Reading
SUPERANNUATION BILL 1946
- Second Reading
INCOME TAX (WAR-TIME ARRANGEMENTS) BILL 1946
- Second Reading
ENTERTAINMENTS TAX ASSESSMENT BILL 1946
- Second Reading
ENTERTAINMENTS TAX BILL 1946
INCOME TAX ASSESSMENT BILL 1946
- Second Reading
WAR-TIME (COMPANY) TAX ASSESSMENT BILL 1946
- Second Reading
WAR SERVICE HOMES BILL 1946
- Second Reading
NATIONALITY BILL 1945
- Second Reading
ORDERS OF THE DAY
- Discharge of Motions
ADJOURNMENT
- Sitting Days - Wheat Industry: Manufacture of Dog Biscuits - Petrol - Buck’s Bay Reef - Tobacco
AUSTRALIAN WHEAT BOARD
- Sydney. 11th February, 1946
- Circular to Millers, M.4/46 Wheat Distributors and Others Concerned
- Dear Sir/s:
- Wheat and Wheat Products for Feeding Livestock
- State Superintendent
PAPERS
ANSWERS TO QUESTIONS
- Wives of Ex-servicemen : Transport to Australia
- Suiting Materials : Export
- Food Ships for Indonesia

Mr. Speak.br (Hon. J. S. Rosevear) took the chair at 30.30 a.m., and read prayers.

page 706

DEATH OF THE HONORABLE SIR ROBERT “WALLACE BEST, K.O.M.G

Mr CHIFLEY:
Prime Minister and Treasurer · Macquarie · ALP

– I regret to inform honorable members of the death yesterday of the Honorable Sir Robert Wallace Best, K.O.M.G. Sit Robert Best’s association with the public life of Australia dated from 1SS9, when he was elected a member of the Victorian Parliament. In 1901, he resigned to enter the federal sphere. At the first general Commonwealth elections he was elected” a senator for Victoria and thus became a member of the first Commonwealth Parliament. He was Chairman of Committees during the years 1901 to 1903, Vice-President of the Executive Council and Leader of the Senate- from February, 3907, to November, 190S, and Minister for Trade and Customs during 1009-10.

Subsequent to his defeat at the Senate elections held in 1910, Sir Robert Beat successfully contested a by-election in August of that year for the Division’ of Kooyong in the House of Representatives, and hold that seat until 1922.

Sir Robert Best attained the ripe age of 91 years. A great portion of his life m-as devoted to the public service of this country. I am sure that honorable members of all parties will join me in extending our deepest sympathy to the members of his family. I move -

That this House records its sincere regret at the death of the Honorable Sir Robert Wallace Best, K.C.M.G., former senator for Victoria and member for the Division of Kooyong, place* on record it* appreciation of bis meritorious public service, and tenders its deep sympathy to the members of his family in their bereavement. l£r. MENZIES (Kooyong- Leader of the Opposition). - I second the motion. The death of Sir Robert Best has brought to an end a career of great distinction and value. As one of his successors in the representation of Kooyong, it is difficult for me to believe that almost a quarter of a century has passed since he ceased to take an active part in public or political life. He certainly did not cease to take an active interest in life, because, for the last quarter of a century, during which I have enjoyed a very close friendship with him. I have never ceased to marvel at his energy, enthusiasm, steadily maintained interest in various activities of the community, and constant practice of the law to a very advanced age. Sir Robert Best was a man of amazingly dynamic mental and physical energy. He was also, in my experience of him, a man of amazing generosity towards other people. He had the rare and admirable faculty in an older man of being interested in younger men. lie helped me in many ways not only at the beginning of my legal carreer, but also at the beginning of my political life. He had that faculty which we all so much admire, of being able to talk to very much younger men on terms of equality of mind and experience. I profoundly regret the news of his death. I convey sympathy to the members of his family, and express personal thankfulness for a splendid life of service to this country.

Mr McEWEN:
Indi

– On behalf of the Australian Country party I support the motion expressing appreciation of the service rendered to this country by Sir Robert Best, and sympathy with his sorrowing relatives. Sir Robert Best was one of that dwindling group of men who played an important part during the very critical formative period of the Commonwealth of Australia. He was one of the leaders in the Victorian Parliament at a time when the legislatures of the colonies were deciding whether the people of this continent should become an Australian nation. It is well that we should not allow the years that have rolled by to prevent us from properly recognizing all that we owe to those who did so much for this country at that period.

Mr HOLT:
Fawkner

– I wish to be permitted on personal grounds to add my own tribute to the memory of the late Sir Robert Best. After graduating at the University of Melbourne, I was privileged to serve my period of articles in the office of Sir Robert. I learnt there to respect him, and I developed an affection for him which lasted down through the years. As the Leader of the Opposition (Mr. Menzies) has pointed out, despite his very advanced age he was a most active and dynamic man. If there is any truth in the saying that a man is as old as he feels, it is true of him. Almost up to the time of his death he had his regular game on the links of the Kew Golf Club. He actively pursued his’ extensive practice of the law in the city of Melbourne. I join in the tribute paid to him for his public service, and add my own expression of sympathy with hi3 widow and family, to whom he was greatly devoted.

Question resolved in the affirmative, honorable members standing in their places.

page 707

STEVEDORING INDUSTRY

Report bt Judge Foster.

Mr CHIFLEY:
Prime Minister and Treasurer · Macquarie · ALP

.- I lay on the table the following paper: -

Stevedoring Industry - Report of Judge Foster. Commissioner appointed under National Security Regulations. and move -

That the paper be printed.

Debate (on motion by Mr. Menzies) adjourned.

page 707

QUESTION

RE-ESTABLISMENT

Disabilities NOT caused by War.

Mr GEORGE LAWSON:
BRISBANE, QUEENSLAND

– Will the Minister for Post-war Reconstruction state whether the following report published in the Brisbane Telegraph of the loth March is correct -

A Department of Social Services has been formed to provide for medical treatment of ex-service men and women suffering from non-war-caused disabilities, states a bulletin issued to-day by the Department for Post-war Reconstruction V

If the statement be correct, will the service be available to ex-service men and women in Brisbane, and, if so, when and where will it be provided?

Mr DEDMAN:
Minister for Post-war Reconstruction · CORIO, VICTORIA · ALP

– I have not read the press report referred to, and I do not know .whether the information contained in’ it is accurate or not. It refers, I understand, to a statement authorized ‘by the Department of Health and Social Services, and apparently published by my department. I shall have the matter investigated.

page 708

QUESTION

SALVAGE COMMISSION

Mr HARRISON:
WENTWORTH, NEW SOUTH WALES

– Will the Prime Minister inform the House whether he has read a report in the Sydney Sun last evening which states -

Operations of the Commonwealth Salvage Commission are criticized by the Commonwealth Auditor-General. Mr. Abercrombie, and he has refused to certify the Commission’s accounts and balance-sheets. “ They cannot be certified as a true and complete reflex of the Commission’s business,” he declares in a report tabled in Parliament to-day.

In view of the fact that this is a reflection . on the administration of the department, does the Prime Minister propose to susr pend the Minister concerned until the current inquiry is completed, and the report presented? Further, in view of the public interest aroused, will the Prime Minister make public the name of the refugee firm which has been so frequently mentioned ?

Mr CHIFLEY:
ALP

– Onequestion I can answer quite definitely: I do not intend to suspend the Minister. I have not yet had an opportunity to read the report of the Auditor-General. The report itself was not submitted to me, but to Mr. Speaker, and was tabled by him. But for once I happened to read the press statement quoted by the honorable member, which contains extracts from the report. As the honorable member knows, the activities of the Salvage Commission, apart from being investigated at the particular request of the Minister himself-

Mr Harrison:

– It was at my request.

Mr.Lazzarini. - The investigation was going on for six weeks before the honorable member referred to the matter.

Mr CHIFLEY:

– The Minister did, in the first place, seek to get the AuditorGeneral to make an investigation. It is true that the honorable member for Wentworth (Mr. Harrison) raised the matter in this House about the same time. The matter was referred for inquiry, ‘ under terms of reference of which the honorable member is well aware, to Mr. Aber crombie, and he was directed also to inquire into certain allegations made by the Leader of the Country party. The inquiry is proceeding. I have not read all the details in connexion with it, but the Minister showed me the report which the Auditor-General had made to him. There are certain suggestions in the report, and some very strong criticism, but there is no allegation of any dishonesty regarding the transactions of the commission, although there are suggestions of carelessness. I do not remember the name of the refugee firm.

Mr Harrison:

– Is it M. Lassy?

Mr CHIFLEY:

– I do not know, but I think it is mentioned in the report, and I shall make the information available to the honorable member.

page 708

QUESTION

MOTOR VEHICLE MANUFACTURE

Statement of Lord Nuffield

Mr ABBOTT:
NEW ENGLAND, NEW SOUTH WALES

– Has the Minister for Post-war Reconstruction seen a statement in this morning’s press, issued on behalf” of Lord Nuffield, wherein he says that heis so disgusted with hrs treatment by the Government of New South Wales in connexion with Victoria Park race-course, on which he planned to erect motor carmanufacturing, works costing £1,000,000,. that he now proposes to establish his factory in South Australia? Will theMinister say whether, in planning Australian industries, priority is given to the horse-racing industry over the motor carmanufacturing industry? If so, is it because although, motor car manufacturing provides more employment, the horseracing industry controls more votes?

Mr DEDMAN:
ALP

– The honorable member is well- aware that the Commonwealth has no constitutional power over the production of goods or services within Australia. We asked the people for that power at the last referendum, and the honorable member was one of those whoworked very hard to- induce the people to record a negative vote. The question which he has directed to me should bedirected elsewhere.

page 708

QUESTION

COAL-MINING INDUSTRY

Conditions of Employment

Mr JAMES:
HUNTER, NEW SOUTH WALES

– Can the Minister repre senting the Minister for Supply and Shipping- say whether it is a fact that; the J. and A. Brown Abermain Seaham Company threatens to cavil out half the employees at Stanford Main No. 1 Colliery unless they accept changed conditions of employment, namely, the extraction of pillars by a method different from that which has prevailed for many years - by tonnage or contract rate - and that the company now proposes to pay the men 25s. for each shift, in Lieu of the rate for first-class shift-men which a miner was always paid when he was taken from his tonnage or contract rate work? In view of the great demand for coal, is the Government prepared to allow that mine to close down due to the avarice of the company and despite wage-pegging regulations? “Will the Minister direct the Coal Commissioner to instruct the Production Manar ger to inspect the colliery forthwith, in order to keep the mine in full production and to maintain the conditions which have been laid down by regulation?

Mr DEDMAN:
ALP

– The Commonwealth Government is very concerned to maintain the production of coal at the highest possible level. In view of the detailed nature of the question, I shall bring the honorable member’s request to the notice of the Minister for Supply and Shipping, and ask him to furnish an answer.

page 709

– The right honorable gentleman should direct that question to the Minister for Transport himself.

Mr Menzies:

– There is no proper Cabinet at all.

Mr CHIFLEY:

– Let me be perfectly clear. I do not intend to ask my colleagues to furnish me with the text of every speech that they deliver in this country in order that it may be supplied to honorable members.. I have no intention of doing so,, and honorable members should get that clearly into their minds.

page 709

– (Hon. J. S. Rosevear) - Order! The Prime Minister is replying to a question asked by the Deputy Leader of the Country party.

Mr CHIFLEY:

– We have been holding in Australia a great quantity of gold but it was not owned by the Commonwealth Bank. A large quantity was held, on behalf of the Bank of England, but the greater part of that has been shipped. We are also holding gold in Australia on behalf of certain other governments and foreign banks. We have added to our gold holdings, but not greatly, in the last twelve or eighteen months. When I have discussed . the matter with the Governor of the Commonwealth Bank, I shall be able to say whether it is desirable in the public interest to make public details of the character asked for. I shall at least be prepared to tell honorable members, who have asked questions on this matter, privately what quantity of gold is held, even if I do not make a public statement.

Mr Abbott:

– I wish to make a personal explanation. When the Prime Minister was replying to a question asked by the honorable member for Indi with regard to gold holdings of the Commonwealth Bank, he challenged the accuracy of certain figures which I cited in a recent debate. I inform the Prime Minister that the figures which I used were supplied to me by the Commonwealth Statis tician, Dr. Roland Wilson. If the right honorable gentleman doubts their accuracy, he must doubt the accuracy of the Government Statistician.

page 710

INTERIM AIR FORCE

Mr DRAKEFORD:
Minister for Air · MaribyrnongMinister for Air and Minister for Civil Aviation · ALP

– by leave - As was announced by the Prime Minister recently, the interim air force will consist of personnel required for the force of occupation of Japan and for garrison duty and other commitments in the islands, as well as those required on the mainland for the maintenance of those forces.-

As honorable members will realize, it is imperative that on completion of hostilities action be taken by the Government in the interest of Commonwealth economy to effect demobilization as rapidly as possible, consistent, however, with the retention of an organization and strength of personnel adequate to cope with immediate post-war commitments and demobilization requirements.

Demobilization of the Royal Australian Air Force is being effected in accordance with . the Government’s plans, which provide for the establishment of an interim force and commitments, as I have already indicated.

The interim force organisation necessary for those commitments has been prepared, and applications, which closed on the 28th February, have been called from all personnel who are still serving in the Royal Australian Air Force, and will volunteer to continue for a period of two years. Those applications are now being considered in conjunction with the personnel requirements provided in the interim force establishment, and recruitment from outside the service to make good the deficiencies will be initiated as soon as the additional numbers required under each of the various musterings are decided.

Shortages of personnel do exist in some of the skilled trades, but it is hoped that early recruitment of former members in those musterings will fill the gap, thus enabling a proper balance in the organisation and strength of the forces to be maintained.

As regards the squadrons, adequate numbers of volunteers in all musterings have been provided for the maintenance and operation of our squadrons in Japan and the islands, whilst considerable numbers are available for similar purposes on the mainland, though as a temporary expedient the majority, of such personnel will be temporarily diverted to such work as the collection, storage, care and maintenance of the aircraft equipment, stores, &c., required for the interim and postwar permanent forces, as well as for the disposal of surplus stocks, demobilisation duties,’ and other temporary commitments.

might add that early consideration will be given by the Government to the organisation of the forces on ‘ their ultimate post-war. basis, but at the same time, I would emphasise that the interim force will have proper relationship to foreseen commitments in the intervening period.

I lay on the table the following paper : -

Interim Air Force - Ministerial Statement. and move -

That the paper be printed.

Debate (on motion by Mr. Menzies) adjourned.

page 711

QUESTION

FAT STOCK SALES AT MELBOURNE

Mr LEMMON:
FORREST, WESTERN AUSTRALIA

– Has the Mister for Commerce and Agriculture seen a statement reported to have been made by Mr. W. McNamara, a Melbourne stock agent, that if the Government agreed to suspend the meat acquisition order for two weeks, agents would guarantee that Melbourne consumers would have a fairly good supply of fresh meat next week? Does the Minister agree that this indicates that stock agents are responsible for the meat hold-up at Newmarket? Did Mr. McNamara advocate the lifting of ceiling prices and quotas as a solution to the problem? If so, does the Minister know what actuated Mr. McNamara to give unsound advice to the Government, and later shift his ground?

Mr SCULLY:
Minister for Commerce and Agriculture · GWYDIR, NEW SOUTH WALES · ALP

– A deputation which waited upon me in respect of this matter consisted of Mr. McNamara, Mr.

McLelland, Mr. Field and Mr. McKenzie, and I. believe that they represented stockowners and agents in Victoria. The deputation requested that the Government lift the ceiling prices and quotas, and said that if that were done they could guarantee future market supplies. In reply to the first part of the honorable member’s question, I have received advice on several occasions during the last few days, including a telegram which I received last evening and to which I have not yet replied, to the effect that the acquisition order was mainly responsible for the withholding of supplies, and that the order should be withdrawn. That advice has been repeated in direct communications from the agents’ representative in. Melbourne. That indicates that the agents consider that they have some influence on the withholding of supplies to Melbourne. However, if the acquisition order is the obstacle, and the agents contend that normal supplies will be restored if the order be lifted, I again say definitely to the agents and to all other meat interests in Melbourne, that when they are able to inform me that normal supplies are available that order will be lifted.

Mr McEWEN:

– Is the Minister for Commerce and Agriculture able to confirm an allegation made at. the meeting which offered suggestions in respect to the settlement of the meat dispute in Melbourne that, prior to the action taken by the Government to issue the acquisition order and take certain other steps which resulted in that dispute, there was a consultation upon- such projected action between the wholesale butchers and the meat control authorities? It is alleged that Mr. Tonkin, the Meat Controller, made an admission to that effect. If the Minister is not able to confirm this allegation will he make inquiries into the matter ? As the principal wholesale butchers in Melbourne are Angliss and Company, which is Vesteys Limited, and the Deputy Meat .Controller ‘ in Victoria was previously an employee of Angliss and Company, and as the authority of the Government to maintain its control of meat may suddenly disappear through a court decision and the Deputy Controller may thereupon resume work for his former employers, does the Government consider it entirely proper that such ;a consultation should have taken place? I also ask whether the . Government considers it proper that prior to the taking of such action, there should have been confidential consultations -between the wholesale hoteliers and the Meat Controller, and no consultations whatever between that Got vernment authority and the producers who, af ter all, are the persons principally concerned ?

Mr SCULLY:

– I shall have an investigation made, and shall supply answers to the principal points raised in the question.

page 712

QUESTION

CIVIL AVIATION

Western Junction Aerodbome

Mr GUY:
WILMOT, TASMANIA

– While attempting to land at Western Junction aerodrome on Tuesday, ‘a fully loaded aircraft with 21 passengers aboard crashed into a building because the brakes failed to hold on the sodden surface of the aerodrome. A member of the crew was slightly injured, and the aircraft and the building were extensively damaged. Jm order to prevent a recurrence of this kind ‘of accident, will the Minister for Civil Aviation issue instructions for the construction, at the earliest possible date, of hardened runways at Western Junction and making the surface of the aerodrome more suitable for the landing of aircraft?

Mr DRAKEFORD:
ALP

– My attention has not yet been directed officially to the accident at Western Junction aerodrome on Tuesday. A very ‘brief reference to it, appeared in the press ; . the report stated that none of’ the passengers was injured.

Mr Guy:

– That is ‘true.

Mr DRAKEFORD:

– To date, I have not been given any further particulars of the accident. The landing was one of hundreds of landings which have been made at Western Junction under similar conditions over the years. Whilst I d-o not desire to pass judgment on the crew of the aircraft, the ‘fact that so many safe landings have been made over a long period indicates that it is perfectly safe to operate aircraft on the aerodrome in its present condition. Nevertheless, I have indicated to the honorable member for Wilmot and other representatives of Tasmanian constituencies that the construction of hard-surfaced r.unways at Western Junction is now under consideration, and I shall be happy , to facilitate the work as .soon as it is possible to do so.

page 712

QUESTION

FLOOD DAMAGE

Mr ANTHONY:
RICHMOND, NEW SOUTH WALES

– As the Prime Min- .ister is aware, there has been a succession of damaging floods in the northern district? of New South Wales and southern Queensland. The difficulties of the local governing bodies in repairing this damage are obvious, and shire engineers have advised me that, because of the lack of suitable machinery, it is impossible for them to restore many communications. Will the Prime Minister investigate the number of tractors and bulldozers at present in the possession of the services? I am informed that dozens of them are held at the Royal Australian Air Force park at Brisbane. Will the right honorable gentleman consult with service Ministers to see -whether this machinery can be made available through the Commonwealth Disposals Commission to shire -councils and other authorities which desperately require it? ‘

Mr CHIFLEY:
ALP

– I shall discuss the matter with the Minister for Works, because the Director-General of Works supervises the release of earth-moving equipment. Inquiries will be made immediately to see whether tractors and bulldozers can be made .available to local governing bodies to enable them “to repair damage caused by floods. As the honorable member for Richmond no doubt is aware, this equipment is in great demand throughout Australia. ‘ I treat . with reserve the assertion that considerable numbers -of ‘these machines are standing idle in various places. Although numbers of -these machines are located in’ parks or are in .storage, they are lendlease ma-feeria-1 and the Commonwealth Government is not yet in a .position to release them.

Mi-. Anthony - I believe that -the machinery to which I referred has .been used. . ‘ ,

Mr CHIFLEY:

– That may be so, but the machines may have been obtained under the lend-lease agreement and used for war -purposes. There is a great deal of lend-lease machinery in Australia; some of it has been used and a small portion- has not been used. The Commonwealth cannot release that machineryuntil it reaches with the United States of America a final settlement regarding lend-lease. The. Minister for Trade and Customs (Senator Keane), who is now in America, is endeavouring to effect that settlement. I shall ask the Minister for Works immediately to investigate the honorable member’s request..

page 713

QUESTION

STONY GROUND

Mr MORGAN:
REID, NEW SOUTH WALES

– Has the attention of the Minister for the Army been directed to an article in the test issue of the Sydney Sunday Sun in reference to a book entitled Stony Ground which has just been published in London? The author is said to be a high-ranking officer on the permanent staff of the Australian Army. He used the pseudonym of “ John Norwood “. In this book, the author* made a sweeping attack on the democratic institutions of Australia, and advocated the setting, up of a virtual Fascist regime. He advocates the abolition of trade unions, sterilization of the unemployable, and other Fascist practices, and claims to be an admirer of the British Fascist, Sir Oswald Mosley.

Mr SPEAKER:

– Order ! I think we have heard enough lurid details.

Mr MORGAN:

– I agree, Mr. Speaker. The book speaks for itself. In view of the position that the writer claims to hold on the Australian Army staff, I should like to know what steps the Minister has- taken to ascertain his identity. Also, should the real name of the writer ‘be revealed, will appropriate action be taken?

Mr FORDE:
Minister for the Army · CAPRICORNIA, QUEENSLAND · ALP

– I have read the report to which the honorable member refers, but I am unable to say whether or not the book was- in fact written by an Australian. Possibly, it was not.I have no. means of finding out.

Mr Morgan:

– The British Government could find out.

Mr Menzies:

– Is the book not dedicated to the Minister for the Army?

Mr FORDE:

– It was written under the nom-de-plume “John Norwood”.

Mr Pollard:

– He might be Eric Harrison.

Mr FORDE:

– It is just as likely that it was written by a member of the Opposition as by a high ranking military officer.

page 713

QUESTION

OPIUM SMUGGLING

Mr FALSTEIN:
WATSON, NEW SOUTH WALES

– Has the Minister for the Army received or read a letter from the Dutch authorities complaining of opium smuggling activities by an Australian Army officer - possibly he has since been discharged - of field rank? If not will the Minister have inquiries made into this matter, and make a report upon it at an early date?

Mr FORDE:
ALP

– I have not seen any such letter, but I shall have inquiries’ made and furnish a reply to the honorable member as soon as possible.

page 713

QUESTION

COTTON GROWING

Mr ADERMANN:
MARANOA, QUEENSLAND

– About twelve months ago an investigation was made by the Tariff Board into the cotton-growing industry in Queensland, and a report has been furnished to the Minister for Trade and Customs..Can the Minister for Commerce and Agriculture indicate the Government’s attitude to the industry as a result of that report, and will he state whether a bill will be introduced, or any. other action taken, to give security to the industry over a period of years ?

Mr SCULLY:
ALP

– I shall have an investigation made and supply the honorable member with full details.

page 713

QUESTION

ARMED FORCES

Occupation Force in Japan.

Mr HARRISON:

– Has the Minister for the Army read in the press reports that Australian troops in Japan are complaining of “ unbelievable bungling” in occupation plans? Is it a fact, as reported, that 129 men are living in ‘.an unheated room measuring 120 feet by 140 feet? Is it also a fact that the occupation forces have not, been immunized against typhus, which is prevalent in Japan? Will the Minister inform the House what, action has been taken to examine press reports of hardship amongst occupation troops, which persist despite official denials?

Mr FORDE:
ALP

– My attention has been drawn to a report in the press following a similar report of a few days ago. The second report added that “angry officers blamed fumbling by politicians at Canberra for the state of affairs “. I say very definitely that- 1 doubt whether any officer made such a. statement, because it is .absolutely absurd to suggest that any Minister at Canberra has been responsible for the internal arrangements made for Australian members of the British Commonwealth Occupation Forces in Japan. The statement to which the honorable gentleman refers is attributed to an unnamed Reuter’s correspondent, who alleges that disillusioned Australian troops” have complained that plans for British occupation of Japan have been “ unbelievably bungled “.

Such arrangements are obviously a matter primarily under the control of the Commander-in-Chief of the British Commonwealth Occupation Forces, who is in turn responsible to the joint Chiefs of Staff, known as Joint Chiefs of Staff, Asia, stationed at. Melbourne,’ who are representative of the United Kingdom,. New Zealand and Australia. Statements of a similar nature to that mentioned by the honorable member, alleging “bungling “, recently appeared in a report published in sections of the press under the name of a correspondent, Massey Stanley. On that occasion the situation was thoroughly investigated by Lieutenant-General Northcott. Commander in Chief, British Commonwealth Occupation Forces, who, in a report to Joint Chiefs of Staff, Asia, described the statements as “ misleading and inaccurate “. General Northcott reported’ that the article gave a “most distorted “ view of the actual situation. General Northcott carried out a personal inspection of the Australian troops in their- quarters, and, considering the short period that units had been ashore, he found everything most satisfactory and reported that the men were happy to be in Japan after months of waiting in the tropics. He added that officers and men of advanced units of British, New Zea-V land and Indian contingents had expressed satisfaction with and admiration of arrangements made for their accommodation and reception. In General

Northcott’s opinion, the movement into the area had been well organized and efficiently carried out. There was evidence of damage to certain installations which had previously been occupied by American forces at Kure, but such damage was being repaired and improvements were being carried out. Investigation by General Northcott revealed that fresh meat and vegetables were on issue, and that fresh meat had been available in ample quantities since the arrival of the first troops. Limited quantities of fresh vegetables were available. Temporary heating of buildings had been installed until such time as oil heating stoves could be unloaded and tested before use. Sporting amenities were available to troops on arrival, and cinemas and canteens were in operation. The further criticism of the living conditions in the British occupation zone by the Reuter’s correspondent has been brought under the notice of the Joint Chiefs of Staff, Asia, who in turn will take the matter up with LieutenantGeneral Northcott. On receipt of a further report from General Northcott the matter will again be considered by Joint Chiefs of Staff, Asia.

page 714

QUESTION

AUSTRALIAN TENNIS TEAM.,

Issue of Passports

Mr CONELAN:
GRIFFITH, QUEENSLAND

– I ask the Minister for Immigration if any application has been made by the Lawn Tennis Association of Australia for passports for a team nf four players who propose visiting the United Kingdom to participate in the “Wimbledon tournament? If no such application has been made by the association, is this just another case of ‘trying to put the Government in the wrong?

Mr CALWELL:
Minister for Immigration · MELBOURNE, VICTORIA · ALP

– No official application has been made by the Lawn Tennis Association of Australia for the issue of any passports, and consequently no such application has been refused; but that does not prevent the Sydney Morning Harold from- making one of its usual mischievous and lying statements that passports have been, refused bv me for the Australian tennis team. The other newspapers, of course, published a different story, which proves that the Sydney Morning Herald is now edited and published from the deepest of Sydney’s sewers. The facts are that Sir Norman Brookes, chairman of the Lawn Tennis Association of Australia, yesterday rang my private secretary and asked him to ascertain from me what the position would be if the association made an application- for passports for the Australian tennis team. He was informed that it was the desire of the Government that nothing should be permitted to interfere with the early transport to Australia from the United Kingdom of the wives and children of Australian servicemen, who had priority in the allotment of steamer passages. My secretary added that as the association’s proposal involved the provision, of passenger accommodation from Australia to Great Britain and, a. few months later, from Great Britain to Australia, it was not likely that the Government would receive any such application favorably. Sir Norman was also told that such an application would prove embarrassing to the Government and the association alike. My secretary asked if the team would travel by air both to and from the United Kingdom, stating that if such an assurance were given, particularly in respect of travel from the United Kingdom to Australia, passports would probably be issued. Sir Norman replied that air travel would be too costly, and that the association desired the team to travel by steamer. During a later conversation on the subject, an officer of the association was told that the issue of passports to the team raised difficulties because of the thousands of people who. had been waiting for a long time to go to London on legitimate business or who for compassionate reasons were entitled to priority of travel over members of the sporting fraternity. The Melbourne officials of the association were understanding, and said that already, on two occasions, the association itself had decided not to send a team to Wimbledon as it was aware of the difficulties that existed in regard to passenger accommodation on ships. The pressure for the despatch of the team to Wimbledon came from Sydney, and an attack has been made by certain Sydney officials of the association upon a decision which I did not give and which was not asked of me. I now refer to a conversation between my secretary and two pressmen, one representing the Sydney Daily Telegraph, and the other the Sydney Morning. Herald. I do not blame the representative of the Sydney Morning Herald for that newspaper’s published distortion of the facts, because what he was told does not appear iri his newspaper, which carried a story concocted in Melbourne. These two pressmen were told what the position was, and also that the Government had done nothing to facilitate the passage to Australia of an English rugby team. That team is coming to Australia on a British aircraft carrier and apparently the members of it will serve as ratings en route. The Government.has not provided any facilities or made any arrangements for the displacement of any brides, children or fiancées of Australian servicemen’ by footballers who wish to visit Australia. I do not believe that any true lovers of sport, whether they be cricketers, tennis players or rugby footballers, will support the attempt that is being made by certain people to make political capital out of a decision which, I am sure, will commend itself to the hearts and minds of the great majority of the Australian people.

page 715

QUESTION

MEAT INDUS TR Y

Dispute in Tasmania.

Mr GUY:

– In view of the fact that housewives in Tasmania were unable to purchase fresh meat recently owing to the dispute in the meat industry there, I ask the Acting Minister for Trade and Customs whether he will make the necessary arrangements for meat coupons which expired while the butcher shops wereclosed to be made negotiable for the purchase ‘of fresh meat as and when it again becomes available?

Mr DEDMAN:
ALP

– Such a course of action would be very unwise and I would not take it. Meat rationing applies to a commodity required for current consumption and, in my opinion, it would be utterly ridiculous to provide that when individual consumers had not been able to obtain supplies of, say, 2 lb. of meat a week for a fortnight when it was not available, they should be allowed t.o purchase 6 lb. in the third week.

page 716

BUFFALO FLY

FORMAL- Motion VOR ADJOURNMENT.

Mr SPEAKER (Hon J S Rosevear:
DALLEY, NEW SOUTH WALES

– I have received from the honorable member for Richmond (Mr. Anthony) an intimation that he desires to move the adjournment of the House for the purpose of discussing a definite matter of urgent public importance, namely - ‘

The serious situation developing in the dairying’ and cattle-raising industries of Queensland and New South Wales by the southward advance of the buffalo fly. and the failure of the Government to take steps to deal adequately with the problem.

Mr ANTHONY:
Richmond

– I move -

That the House do now adjourn.

Mr SPEAKER:

– Is the motion supported?

– At this time,* I was doing my utmost to impress Ministers with the seriousness of the problem; and I have been continuing my endeavours ever since. On the 6th June, 1944, the Minister for Commerce and Agriculture, in a telegram to me, said that he was fully seized with the gravity of the problem, but did not favour the sending of a commission to northern Queensland to report on it. At that time, I was, and I have been since, urging that, because of the seriousness of the problem, a commission composed of veterinary experts and cattlemen should be sent to the affected areas to gain first-hand knowledge, and report to the Minister upon their investigations. The only satisfaction that I received from the Minister for Commerce and Agriculture was contained in a letter to him, from the East Barron dairymen’s organization which he forwarded to me, asking for the retention of Mr. Norris, an officer of the Council for Scientific and Industrial Research, Malanda. In that letter, the association said -

Mr. Norris lias done good work in the time and with the material he had to work on.

On the 21st June, the Minister for Commerce and Agriculture wrote to me in the following terms: -

I am satisfied that all necessary steps have been taken to deal with the spread of the fly.

That illustrates his complacency. He went on to say -

Officers of the Council for Scientific and Industrial Research, in co-operation with State Government officials, have, as you know, been giving the closest attention to the spread of the buffalo fly in recent months, and under the circumstances I do not think it necessary to arrange for a further investigation to be made by the Federal Tick Commission.

Every effort by me and others to have the matter independently investigated has been frustrated. In a letter to the Leader of the Australian Country party (Mr. Fadden) on the 11th July, 1944, the Minister for Commerce and Agriculture said - it is known that in parts of the country where the buffalo fly has existed for several years, the cattle have accommodated them selves to thu fly and have’ shown little signs of loss of condition, although at first they were badly affected when attacked by the fly-

Apparently, that was regarded as good ground for complacency. The letter went on to say -

Therefore, while the loss of production may be rather serious in the early stages, it is probable that the loss will decline considerably within a year or two.

That was the answer of the Minister to requests for prompt action to avert a calamity. Before I left for northern Queensland in July, 1944, I was assured by the Minister that a research station had been established at Malanda and - using his words - “ everything possible was being done “.

When I arrived at Malanda I found . the research station to be a small room in the local hotel building, and the only practical piece of equipment in it was a refrigerator in which to store samples of blood and other matter. The young scientist, whose name is Norris, was keenly anxious to serve, but he was handicapped in every .way by the lack of adequate help and equipment. He had one part-time assistant in the person of the local daily instructor. One would have expected that he would have been provided with the labour for manual tasks, but he had to do even a substantial part of the fencing in order to erect the fly trap, ;of which I have a photograph. In the last Estimates an amount of over £750,000 was expended by the Council for Scientific and Industrial Research. I ask the Minister in charge of that institution, how much of that money was used in the investigation of the buffalo fly problem? I challenge him to say that the expenditure, in that direction exceeded even £5,000, although millions of pounds is involved in the beef and dairying industries and food production is seriously threatened. I shudder to think of the consequences to the cattle and dairying industries of northern New South Wales and southern .Queensland, if as little is done to help the farmer as I found to be the case when I visited northern Queensland. The producers there were left practically to their own devices. They were using every kind of insecticide from flytox to sheep dip in a desperate effort to help themselves. They were unable to secure the necessary materials, such as wire gauze, to build the traps which the Council for Scientific and Industrial Research said should be used, and which have proved to be effective so far as dairy-farms are concerned.

On my return- to Canberra, as I mentioned earlier, I organized a deputation to the Minister for Commerce and Agriculture, as the result of which 625 coils of gauze wire, sufficient for 650 traps, were made available to the farmers of northern Queensland. I point out, however, that in the area which the fly is now approaching - the Burnett, Gympie, and Maryborough districts and the Moreton and South Coast districts of Queensland - there are about 30,000 dairy-farms. I have been informed by the New South Wales Department of Agriculture that each cage trap - and one will be essential at every milking yard - requires 400 superficial feet of timber and 35 yards of gauze; or, if glass is used, it might require IS square yards of glass. I have not the exact figures with regard to glass. It is only a matter pf simple arithmetic to determine that 30,000 dairy-farms will require 12,000,000 superficial feet of timber and 1,000,000 yards of gauze. If glass is used, over 500,000 square yards will be needed.

The Minister has said that after the fly becomes established in a district, the cattle get used to it and no. very serious damage is done, but I have two letters, bearing on that point, one of which is from Mr. W. D. Davies, secretary of the North Queensland Coastal Cattle Fatteners Association, Innisfail, who wrote to me on the Sth August last as follows : -

The fly. is still very bad in this district and causing considerable damage to live-stock.

From unofficial sources we have been informed that the fly is making rapid progress south.,

We cannot understand the attitude of Commonwealth Ministers in apparently hedging ur at least not forcing the issue of DDT under proper control if necessary to graziers, yet allowing mixtures to be put on the market containing DDT.

That letter was written to me in response to representations which I had made to the Minister, asking that DDT be made available to stock-owners. The delay in providing it is inexcusable, because I saw it being sprayed on beasts at Townsville eighteen months ago. Not until the 20th November last did the Council for Scientific and Industrial Research issue a circular approving of the use of this particular insecticide on stock. It took eighteen months even to get a formula* from the council enabling stockowners to use it.

The Lismore Chamber of Commerce was so concerned recently about the inaction that it wrote to the Rockhampton, Mackay and Townsville Chambers of Commerce to ascertain the position in their districts. The Rockhampton Chamber of Commerce replied -

Apparently the Federal Government has done little or nothing, and the steps ‘taken by the Queensland Government to prevent the spread of the fly have proved ineffective.

The Townsville chamber said -

Having regard to the great importance of the subject, it has not been treated with the urgency and serious attention it deserves.

The answer from Mackay was as follows : -

Very little, if anything, has been done in a concerted way to check the spread of the pest.

When I was in Queensland the fly had become established in Nebo, in the Clermont district. I have a map before me which will show the Minister how seriously the fly has spread since then. In January, 1943, it had reached Malanda, in north Queensland, which is 900 miles from the New South Wales border. In July, 1944, eighteen months later, it had advanced 360 miles, and was then 540 miles from New South Wales. In November, 1945, a letter from the Minister showed that the line of advance was from Springsure to Bororen, so that the fly had advanced 160 miles in seventeen months, and was then only 3S0. miles from New South Wales. I am informed by the honorable member for Maranoa (Mr. Adermann) that the fly is now in the districts of Taroom and Eidsvold, and is now less than 180 miles from the New South Wales border’. Two years ago it was 900 miles away from the border and now it is only 180 miles away, yet the Government says that everything possible has been done ! The pest is now entering a district through which it will be able to spread like a fire through dry grass. It is entering the rich dairying districts of South Burnett, Gympie, Maryborough, and the electorate of the honorable member for Moreton (Mr. Francis) where the dairy farms adjoin for many miles. There are in those two areas in South Queensland 16,000 dairy-farmers, but nothing has been done’ to meet the situation that will exist when the fly eventually reaches there. All that the Council for Scientific and Industrial Research has done is to issue a circular dated the 16th November telling farmers how they can mix an emulsion containing a DDT, and use spreaders of various kinds. Another circular issued about the 30th December gave details of the construction of a new kind of fly trap,- using glass instead of gauze. It was not until the 14th February last that the Minister gave any sign of recognizing the seriousness of the problem. On that date he held a conference with the Ministers of Agriculture of New South Wales and Queensland. [Extension of lime granted.] Afterwards, a statement was issued by the Ministers to the effect that they realized that the problem of the buffalo fly must be treated as a national one. They recognized the inroads which the fly was making into the production of milk in Queensland, and how it was having the effect of reducing the weight of beef cattle aid damaging hides. It was further stated that an agreement had been reached to provide funds for research purposes. This was twenty months after honorable members had stressed as emphatically as possible the danger threatening the cattle industry. The Minister for Commerce and Agriculture promised that he would try to arrange for a supplementary grant to be made for investigation purposes.

Now the fly has reached the northern edge of the south Burnett district, and also the districts of Maryborough’ and Moreton. In those districts there are more than 640,000 dairying cattle which produce S3,000,000 lb. of butter a year. There are 864,000 beef cattle, and 16,000 dairy farmers. In northern New South Wales, where the fly may be expected to make its appearance at any time in the next twelve months, there are 1,776,000 cattle of which 976.000 are dairy cattle. Dr. Nicholson, of the Council for Scientific and Industrial Research, has said that fly, once it enters New South Wales, will probably spread as far south as Newcastle and Sydney. Butter production in this threatened area amounts to 76,000,000 lb. a year, or 82 per cent, of the total butter production of New South Wales. The area produces 4,491,000 lb. of cheese, or 44 per cent, of the total State production. It also produces 523,000 pigs, or 51 per cent, of the total State production. The value of the butter produced in southern Queensland and New South Wales is £12,000,000. a year. Although food production in this area is so seriously threatened, a mere trifle has been expended up to date by the Council for Scientific and Industrial Research on research work to control the menace, and only a handful of men have been made available for the work. In reply to the statement of the Minister for Commerce and Agriculture about eighteen months’ ago that cattle became inured to the fly after a year or two, and that, there was, therefore, no need to take active control measures, I quote the following telegram which I received the day before yesterday from Mr. W. Davies, secretary of the stockowners of Innisfail : -

Buffalo fly is still severely attacking cattle coastal littoral. Council for Scientific and Industrial Research officials conducting experiments Innisfail district with DDT emulsions which protect cattle from fly for periods of about three -weeks after each spraying but DDT very expensive.

I have here a- map which illustrates the rapid advance of the buffalo fly during the last few years. In 1941, it had reached a line beyond Douglas. By 1942, it was down to Cardwell, in the Innisfail district. By 1943, it was as far south as Townsville, and in 1944 it had reached Nebo and Clermont. In November, 1945, it reached Springsure and Bororen, having advanced 160 miles in seventeen months. After the lapse of a further four and a half months, it. had travelled another ‘ 200 miles south of Springsure, and, is now in the Taroom and Eidsvold districts, where it is only 180 miles from the New South Wales border. The rapidity of this advance requires immediate action by the Government. It has not been my purpose to embarrass the Government by advocating the establishment of buffer areas. I believe such schemes to be as impracticable as Ministers have described them. I believed that it was impracticable to establish such areas, and the Minister, after investigation, came to the same conclusion. It was suggested at one time that a buffer area 50 or 100’ miles wide should be established on the Queensland, coast, andall cattle removed from it. I did not believe that it was possible to do that. However, I now . make a suggestion that the following measures be applied: -

The immediate appointment of a statutory body consisting, not only of government officials, but also stock- owners’ representatives, armed with sufficient funds and powers to take immediate action, and able to give expert advice to the Minister on other phases of the problem requiring additional government aid.
A greatly increased research staff under the. Council for Scientific and Industrial Research to advise on improved methods of control, and able to advise stock-owners of the best and most economical means of attack on. the pest.

There is much difference of opinion as to the most economical kind of fly trap that can be constructed. Practical men have told me that they can make a fly-trap which costs only half as much as the one recommended by the Council for Scientific and Industrial Research. An investigation should be undertaken in order to ensure that the utmost economy will be exercised in connexion with traps.. Other suggested measures are -

The provision of materials, such as timber, gauze wire and glass, which will be urgently required in large quantities immediately, the fly descends on a district.
The strict control of stock movements, and, in certain instances, the total prohibition of movement, in order to arrest the advance of the fly as long as possible.

I pay tribute to the work of the Queensland Department of Agriculture and Stock, which has done much to arrest the advance of this pest. The department has continued to use spraying materials, and has placed restrictions on themovements of stock, but despite its efforts, the fly has- advanced.

The construction of traps on a mass production basis for erection by farmers, in order to reduce the cost and make them available quickly and financial assistance to purchase trapswhere necessary.

I have here a photograph of a trap constructed by the Council for Scientific and Industrial Research at Malanda. An examination of it will reveal that thetrap is a somewhat intricate arrangement, involving a series of gauzewirecages. ‘ The large number of traps- required justifies their manufacture on a mass production basis.

The provision of adequatequantities of DDT for the effectivecontrol of the pest, and a sharing of the cost by the Commonwealth Government by way of a subsidy.

Mr FRANCIS:
Moreton

.- The remarks of the Minister for Post-war Reconstruction (Mr. Dedman) have been the most pathetic that I have listened to in this chamber. They were not only unworthy of a Minister, but also stupid. What a hopeless outlook it is for the producers of Queensland and New South Wales when the Minister holds up his hands in righteous indignation and says that he lacks the power, under the Constitution, to establish an organization to combat the buffalo fly and assist primary producers to get gauze and glass and timber for their traps on sheds. The Minister states that because honorable members on this side of the chamber did not support the Government’s referendum proposals, he is not now able to catch even a buffalo fly. What an appalling proposition! The Minister’s reply is the weakest that I have ever heard in this House. The honorable gentleman should how his head in shame.

Hundreds of thousands of producers from north Queensland to New South Wales are on the verge of losing the productivity of their live-stock at a time when the world urgently requires more fond. People are starving in the devastated areas of Europe, our kinsfolk in Great Britain are undernourished, and India is experiencing a famine. Australia should be ‘ the storehouse of the world, capable of satisfying the needs of all those hungry people, but all that the Minister could say was, “I cannot do anything unless the people endorse the Government’s referendum proposals “. Words can hardly describe his attitude. . Never before have. I heard such stupidity in defence of inactivity. Years ago, this Government was warned of the danger of the buffalo fly. I first raised this matter when the present Government was in office on the 27th. January, 1943, and Honor able members opposite received my warnings with derision. On that occasion, the Minister said that he had not received any representations about the danger, and did not know anything about it. I then pointed out what had been done to bring the matter to his notice. Between January, 1943, and to-day the buffalo fly has moved 900 miles down the coast of Queensland, destroying valuable beef cattle and the productivity of dairy herds. The pest is responsible for the loss of 25 per cent, of the calves, through being bom prematurely, a loss of weight in cattle as high as 25 per cent., a loss of at least 3s. a hide, and a decline of dairy production of 33 per cent. In 1943 I warned the Minister of those dangers, but he took no action. On the 19th July, 1944, a deputation, which included the honorable member for Richmond (Mr. Anthony) and myself,, waited on the Minister. We pointed out the serious consequences of the spread of the buffalo fly, and appealed to the honorable gentleman for- assistance to obtain supplies of gauze, timber, and DDT for emulsions for spraying stock, in order to check it and for the provision of traps. What has happened ? To-day, the Minister declared that he cannot do anything because the Government has not the constitutional power to act, but that if we had supported the Government’s referendum proposals last year the position might have been different. He implied also that if we did not support the forthcoming referendum he would never be able to catch a buffalo fly. Never in my life have I heard such foolishness. It staggers me.

The ravages of the buffalo fly are also affecting the settlement of ex-servicemen on the land. “ Because of the menace, hundreds of ex-servicemen are reluctant to engage in cattle-raising and dairy production. Two gentlemen who purchased large and valuable properties in my electorate, discussed the problem with me. They informed me that they had bought the properties for their sons, who had served this nation faithfully and helped to defend it during the war. They desired to raise stud stock and stud dairy cattle, but because of the ravages of the buffalo fly, they would not attempt to do so. The Minister for Post-war Reconstruction has a “ dead hand “, he murders everything he touches. Through his neglect, food production is suffering. No person in this community is more dangerous than he is. The Reestablishment and Employment; Bill, which he introduced, provides preference for exservicemen for a period of only seven years from the 15th August, 1945. The Minister reduced the period as far as he possibly could, and thereby reduced the value of the preference almost to vanishing point. To-day, hundreds of thousands of servicemen who have not yet been demobilized will receive the benefit of the preference for a period substantially less than seven years.

Whenever the Minister is allotted a task he fails dismally. I urge him to realize that his indifference to the ravages of the buffalo fly will cost Australia hundreds of millions of pounds. Because of his neglect, food is not being produced in the required quantities. In spite of his contention that he lacks the necessary authority, this problem could be properly tackled if the Commonwealth supplied the Government of Queensland with all the assistance that it needs. With that spirit of co-operation, the pest could have been successfully combated in 1943, when I first raised the matter. But instead of doing that, the Minister is happy to sit back, raise his hands in righteous indignation, and say that he cannot do anything. If the honorable gentleman met some of the cattlemen in my constituency, be would hang his head in shame. Ex-servicemen’s organizations in Queensland invited him to visit them and discuss their problems with them, but instead of going north, he went as near to the South Pole as he could. I challenge him to make the utterly stupid speech, which he delivered this morning, to some of my constituents, or the electors of Maranoa and Wide Bay. If he did so, he would not leave their meeting without being severely handled. He would not deserve to. Our rural industries are being seriously affected by his indifference. Why does he not do something?

To-day, the honorable member for Richmond (Mr. Anthony) referred to the many attempts that had been made to arrest the spread of the buffalo fly. But the only reply which the Minister made was that he had no power to act. Where there is a will there is a way. I am satisfied that if the Minister had the inclination, he could tackle the problem. Instead of doing so, he occupied the time at his disposal this morning in pointing out what he could not do. We are not asking for that information. We should like to know whether he proposes to do anything, because we are anxious to cooperate with him. He accused us of political motives in launching this motion. There can be no politics in the destruction of two of the principal industries of the Commonwealth, namely, the cattleraising industry and the dairying industry. They have been important factors in establishing Australia’s favorable trade balance overseas so as to enable us to import the raw materials that we require for our development. The Minister for Post-war Reconstruction has done as great a disservice to Australia in regard to these industries, as he has done in the handling of the problems of exservicemen.

Mr SCULLY:
Minister -for Commerce and Agriculture · Gwydir · ALP

– I have listened with, interest to this debate. At least, the honorable member for Richmond (Mr. Anthony) endeavoured to indicate some reasonable method whereby assistance could be given by the Commonwealth Government to counteract the depredations of the buffalo fly, and for that practical contribution to the debate we are grateful; but generally speaking, honorable members opposite have, by interjection, suggested utter impossibilities. The Government has no wish to minimize the seriousness of this pest which is menacing the beef cattle and dairying industries not only in certain parts of Australia, but also in other countries. Endeavours to halt the onward march of various species of the buffalo fly in the United States of America have been without success. As the Minister for Post-war Reconstruction (Mr. Dedman) said, the ultimate check is climatic conditions. It is true, as the honorable member for Richmond said, thai, some time ago a deputation waited on mc and that I promised to visit areas affected by the buffalo fly. Unfortunately, circumstances prevented me from fulfilling that promise. There was no lack of will on my part to make the visit, but certain difficulties arose, and I found it impossible. However, I sent to those areas, a man who is more familiar with the history and movements of the buffalo fly than any one else in this country. I refer to the Director-General of Agriculture, Mr. Bulcock, who for twelve years was Minister for Agriculture and Stock in Queensland. Recently in Brisbane, a conference was held of Commonwealth, Queensland and New SouthWales Ministers and technical officers, including the most highly qualified technical men in those States. Delegates included myself, the Queensland Minister for Agriculture and Stock, the New SouthWales Minister for Agriculture, Mr. E. H. Graham, the Commonwealth Director-General of Agriculture, Mr. F.W. Bulcock, Mr. A. H. “Williams, Live-stock Officer, Department of Commerce and Agriculture, Mr. Max Henry, Chief of the Division of Live-stock, and Dr. Legge, Chief Veterinary Officer of Queensland.We went into the matter thoroughly. We had before us the history of the buffalo fly and could trace its movements over the years. All available information was supplied to us by scientific and veterinary officers. The conclusion reached was that the depredations of the fly could be reduced only by some method of control, and that the only effective method of control seemed to be the setting of traps. The real difficulty with which cattle-owners have had to contend is that of securing adequate supplies of DDT. When I visited Queensland recently, L received deputations from stock-owners in the areas affected by the buffalo fly, and from the Graziers Association of Queensland: The chief complaint voiced by the spokesmen for these deputations was the inadequate supply of DDT and also its high cost. In addition, there was serious criticism of the quality of the DDT that had been supplied. A promise was given by Queensland and New South Wales Ministers, that immediate steps would be taken to have an analysis made of all supplies of DDT to ensure that it met specific requirements. . That seemed to satisfy most of the stock owners. To every deputation that has waited upon me in regard’ to this matter - there have been four or five - I have put the question, “ What do you suggest can be done to prevent the spread of the fly? “, and on not one occasion has anybody been able to offer a worthwhile suggestion. All that the deputations sought was the assistance of the Commonwealth and State Governments in ensuring the availability of materials necessary for the erection of traps and only in the dairying districts. They assured me that on the Atherton Tableland four or five hundred traps were operating. I have been informed also that the depredations of the fly are worse immediately upon its entry to a new district. After that, the stock seem to become more tolerant, and to some degree immune from attacks.

Mr Anthony:

– There is a difference between coastal stock and stock in the drier areas.

Mr SCULLY:

– I gather that only in exceptional circumstances can the fly live in the drier areas. In very wet seasons it may spread so far inland as Tamworth, but as soon as dry conditions . re-assert themselves, it returns to the moist coastal areas. Members of the Queensland Parliament and cattle owners in the subtropical coastal portions of Queensland have told me that in those regions, after a certain period, stock becomes immune to a certain degree from the buffalo fly. They do not suggest that it is not still a pest; but the general opinion is that its effect upon thestock is minimized. They informed me, also, that they do not think there is anything that can be done. We discussed at length the proposal of a buffer area, and came to the conclusion that it might be a possible solution.

Mr SPEAKER:

– Order ! The Minister’s time has expired.

Motion (by Mr. Sheehan) put -

That the question be now put.

The House divided. (Mr. Speaker - Hon. J. S. Rosevear.)

AYES: 37

NOES: 21

Majority . . 16

AYES

NOES

Question so resolved in the affirmative.

Question put -

That the House do now adjourn.

The House divided. (Mr. Speaker - Hon. J. S.Rosevear.)

AYES: 21

NOES: 38

Majority … 17

AYES

NOES

Question so resolved in the negative.

Sitting suspended from 12.55 to 2.15 p.m.

page 728

SUGAR AGREEMENT BILL 1946

Motion (by Mr. Dedman) agreed to -

That leave be given tobring in a bill for an act to approve anagreement made between His Majesty’s Government of the Commonwealth of Australia and His Majesty’s Government of the State of Queensland, and for other purposes.

Bill presented, and read a first time.

Second Reading

Mr DEDMAN:
Minister for Post-war Reconstruction and Minister in charge of the Council for Scientific and’ Industrial Research · Corio · ALP

– by leave - I move -

That the bill be now read a second time.

The bill is to approve the sugar agreement made on the 17th December, 1945; between the Commonwealth Government and the Government of Queensland. Thebill, which is in substantially the same terms as the Sugar Agreement Act of 1941-1946, is one of a series of agree- ments dating back to 1915 made between successive governments of the Commonwealth and the State of Queensland. Thirty years of experience have demonstrated the special suitability of the sugaragreement as an effective means of protecting the industry and for giving adequate consideration to the reasonable- needs of growers, manufacturers, distributors and consumers. Commonwealth and Queensland governments of every political complexion have, since 1915, been parties to various renewals of the agreement. It has indeed become a nonparty matter. The existing agreement is due to expire on the 31st August, 1946, and the Commonwealth Government has accepted the invitation of the Government of Queensland and decided to renew the agreement before its expiration. It is necessary that the agreement be approved as soon as possible so that the industry will know the position which will exist after August, 1946, and be able to plan accordingly.

The Australian sugar industry is to be congratulated on the very good production effort it made in the very difficult circumstances existing during the war. As in the previous war, Australian consumers and manufacturers were protected by the fixation of the home consumption price by the sugar agreement. No matter what fantastic heights the price of sugar reached on the world’s markets, and irrespective of whether Australian seasons were good or poor, Australian consumers for very many years have had to pay only. 4d. per lb., which, as the following statement shows, is the lowest retail price in any capital city in the world at present. “Consumers and manufacturers have been protected under the sugar agreement from the high prices prevailing in the world’s .markets not only during the war but also during peace-time. The present retail price of sugar has stood for fourteen years. In this respect, it takes a unique place amongst important primary products. Exporters of manufactured preducts are protected by special conditions in the agreement which enable them to obtain their sugar at the Australian equivalent of the world parity price or £32 10s. 9d. a ton, whichever is the lower. “Whilst accepting with gratification the stability and security which the agreement’ affords, the industry has expressed some fear for the future. The limitation of prices to prevailing amounts was viewed with some misgivings and assurances were .sought that the Commonwealth would meet any further increases of production costs and reimburse the industry in the event of a fall of export, prices. It must be pointed out that the industry has been able to carry on at the present domestic price, despite increased costs of certain of its requirements, principally because of the remarkable improvement of its efficiency. The acreage yield in terms of raw sugar is now at least twice as great as it was in 1900, while the mills have also -greatly increased their efficiency during the last 30 years: Further, the Tariff Board in 1944 conducted an intensive investigation into the economics of the industry in respect of the 1943 crop, which was one of the worst- seasons experienced, but found that the payment of a subsidy was not war: ranted. The Commonwealth Government, however, while taking the stand that there could be no grounds for varying the existing terms of the agreement, recognized that future Australian cost levels were unpredictable, and accordingly gave an assurance to the Queensland Government that if, during the currency of the agreement, cost levels in Australia increased substantially it would be prepared, on representations from the Queensland Government, to give consideration to instituting an investigation into the sugar industry’s, position in relation thereto. The claim by Queensland that the Commonwealth should guarantee the price of export sugar could not be entertained. The Commonwealth could not recognize as an obligation that it should subsidize sugar exports, and this is specifically provided under clauses 9 and 10 of the agreement. Clause 9 states -

The Queensland Government shall on behalf of the Australian cane-sugar industry accept responsibility for any loss arising from the exportation of surplus cane-sugar from Australia.

Clause 10 provides that the Queensland Government shall take the necessary action to control the production of raw sugar.

Advice was received from the secretary of the Federation ofRetail Grocers Associations that his executive had instructed him to state that, if any adjustment was to be made to the wholesale price of sugar, provision should also be made for an increased margin to the grocer. As the wholesale price remains unchanged under the new agreement, the question of any alteration to the retailer’s margin, therefore, does not arise. It must be pointed out that the Sugar Agreement is a document which relates mainly to peace-time conditions, and is based on the normal powers of the Commonwealth. The retail price of sugar is, therefore, not relevant to this bill. The Government has also received representations that the existing 2 per cent. wholesale discount be granted to what are termed “ genuine wholesalers “ only. The agreement provides that this 2 per cent. discount is allowable to any person, firm or corporation who or which in the opinion of the Queensland Sugar Board -

provides reasonable credit facilities for retailers on a comprehensive range of groceries;
keeps reasonable stocks of such groceries for resale to retailers; and
buys not less than £1,500 worth per calendar month of sugar and other sugar products as aforesaid.

The Government recognizes that the wholesale trade is an essential and important factor in the distribution of sugar and other groceries, and both the Commonwealth Government and the Queensland Government gave careful consideration to these representations when reviewing the agreement. Both governments agreed, however, that it would be undesirable to revert to the chaotic conditions which applied before 1940, when, under the agreement then existing, an endeavour was made to restrict the trade in the manner now desired. It has been decided, therefore, that it would be in the best interests of all concerned to allow ‘the conditions for wholesale discount to remain as prescribed in the 1941-46 agreement. The agreement continues to provide for the prohibition of imports of sugar into Australia, except as to types of sugar which may be required for special manufacturing purposes and for scientific research. In consideration of this extended prohibition of imports, the Queensland Government accepts numerous obligations, the chief of which are -

to accept full responsibility for any loss arising from the export of surplus cane sugar from Australia ;
to take such action as is necessary to control effectively the total production of raw cane sugar in Australia.;
to make sugarand other products available at not more than specified maximum prices at all State capital cities and at Darwin, Fremantle and Launceston.
to contribute £216,000 per annum to the Fruit Industry Sugar Concession Committee for disbursement by that committee in paying domestic and export sugar rebates and assisting processors of Australian fruits generally ; and
to pay export sugar rebates in respect of other goods containing sugar so that the net cost of Australian sugar contained in such goods shall be no more than the Australian equivalent of the world sugar parity price ;

In conclusion, I point out that on previous occasions the economic value of this industry to Queensland has been stressed. On this occasion it is quite unecessary for me to mention at length the great national importance of this industry, which has supplied Australia and other countries with sugar throughout the war period when sugar supplies were unobtainable from other sources.

The agreement is essential to the stability of the industry and to the security of the many people dependent upon it for their livelihood. I, therefore, commend to the House this bill for the approval of the new sugar agreement, believing thatall honorable members will agree that it provides equitable treatment for all sections of the community.

Debate (on motion by. Mr. Menzies) adjourned.

page 731

COMMONWEALTH CONCILIATION AND ARBITRATION BILL 1946

Motion (by Dr. Evatt, through. Mr. Ch.ifi.ey) agreed to -

That leave be given to bring in a bill for an act to make provision for the performance by the next senior judge of the duties of the Chief Judge of the Commonwealth Court of Conciliation and Arbitration in the event of his absence from office or his inability to perform the duties of his office.

Bill presented, and read a first time.

page 731

JUDICIARY BILL 1946

Motion (by Dr. Evatt, through Mr. Chifley) agreed to -

That leave be given to bring in a bill for an act to restore the number of justices of the High Court to the number of seven.

Bill presented, and read a first time.

page 731

COMMONWEALTH PUBLIC SERVICE BILL 1946

Second Reading

Debate resumed from the 20th March (vide page 432), on motion by Mr. Chifley-

That the bill be now read a second time.

Mr MENZIES:
Leader of the Opposition · Kooyong

– It seems to me that this bill and the two or three that will immediately follow it are consequential upon the State Grants (Tax Reimbursement) Bill that we discussed yesterday. Having regard to the fact that uniform income taxation has been made permanent, it becomes necessary to make certain consequential changes in respect of civil service superannuation, the rights of transferred officers and wartime arrangements generally as they existed under the original scheme. As 1 have said all I desire to say on the larger question involved, I do not propose to add to the debate on this bill or the four that will follow it.

Question resolved to the affirmative.

Bill read a second time.

In committee:

Clauses 1 to 3 agreed to.

Clause 4 -

After Division 9a of Part III of the Principal Act the following Division is inserted: - “ Division 9u. - Appointment and Employment of Certain State Taxation Employees. “ 81u. A State employee shall, upon his being appointed or employed under this Division, be credited with the sick leave for which he would have been eligible if he had been continuously employed in the Commonwealth Service for the period of his continuous employment . . . “Sly - (1.) Where a State employee was, immediately prior to his being appointed or employed under this Division, entitled to; or eligible for, the grant of furlough or pay in Men of furlough (including pay to his dependants on his death) after a period of continuous service (being less than twenty years) specified in the law of the State in which he was employed . . .

Mr LAZZARINI:
Minister for Works and Housing · Werriwa · ALP

.- I move -

That, in proposed new section Siu, after the word “ employed “, second occurring, the following words be inserted: - “as a permanent officer “.

It was intended when this provision was drafted to enact that a State employee some or all of whose service with a State had been in a temporary capacity, should be credited for sick leave purposes with the whole of his State service as though he had been a permanent officer of the Commonwealth during that period. The purpose of this amendment is to make that intention clear.

Amendment agreed to.

Mr LAZZARINI:
Minister for Works and Housing · Werriwa · ALP

.- I moye -

That, in proposed new section 81v subsection (1.). the words “ (being less than twenty years) “ be left out.

The provision is designed to preserve the furlough rights which a State employee had under State law. There is a slight difference between the practice in the New South Wales Public Service and the practice in the Commonwealth Public Service after an employee has had 20 years’ service. The amendment is designed to ensure that the furlough rights of a State employee will be preserved both before and after the completion of 20 years’ service.

Amendment agreed to.

Clause, as amended, agreed to.

Title agreed to..

Bill reported with amendments ; report - by leave - adopted.

Bill - by leave - read a third time.

page 732

SUPERANNUATION BILL 1946

Second Reading

Debate resumed from the 20th March (vide page 433),on motion by Mr. Chifley-

That the bill be now read a second time.

Question resolved in the affirmative.

Bill read a second time and committed pro forma; progress reported.

Message recommending appropriation reported.

In committee (Consideration of Governor-General’s message) :

Motion (by Mr. Lazzarini) agreed to -

That it is expedient that an appropriation of revenue be made for the purpose of a bill for an act to amend the Superannuation Art 1922-.1945.

Resolution reported and - by leave - adopted.

In committee: Consideration resumed.

Clause 1 agreed to.

Remainder of bill - by leave - taken as a whole and agreed to.

Bill reported without amendment; report adopted.

Bill - by leave - read a third time.

page 732

INCOME TAX (WAR-TIME ARRANGEMENTS) BILL 1946

Second Reading

Debate resumed fromthe2 0th March (vide page 433), on motion by Mr. Chifley -

That the bill be now read a second time.

Question resolved in the affirmative.

Bill read a second time and reported from committee without amendment or debate; report adopted.

Bill - by leave - read a third time.

page 732

ENTERTAINMENTS TAX ASSESSMENT BILL 1946

Second Reading

Debate resumed from the 20th March (vide page 434), on motion by Mr. Chifley -

That the bill be now reada second time.

Question resolved in the affirmative.

Bill read a second time and reported from committee without amendment or debate; report adopted.

Bill - by leave - read a third time.

page 732

ENTERTAINMENTS TAX BILL 1946

In Committee of Ways and Means: Consideration resumed from the 20 th March (vide page 437), on motion by Mr. Chifley -

That the tax imposed by the Entertainments Tax Act 1942-1944 continue to be imposed without the limitation on the period of its operation contained in section6 of that act.

Question resolved in the affirmative.

Resolution reported.

Standing Orders suspended ; resolution adopted.

Ordered -

That Mr. Lazzarini and Mr.Dedman do prepare and bring in a billtocarry out the forgoing resolution.

Bill presented by Mr.Lazzarini, and passed through all stages without amendment or debate.

page 732

INCOME TAX ASSESSMENT BILL 1946

Second Reading

Debate resumed from the 20th March (vide page 437), on motion by Mr. Chifley -

That the bill be now read a second time.

Mr HOLT:
Fawkner

.- The purpose of this bill is to amend the Income Tax Assessment Act. Any such bill is of importance because of the tremendous implications of the taxation policy in operation in Australia at present, which affects every man and woman in the community. Before World War I. Commonwealth income tax was unknown to our people. It began its tremendous growth from the- days of that war and it has now reached proportions which at that time were undreamed of. A great widening of the ambit and severity of taxation has also occurred. Just prior to the outbreak of World War II. only 300,000 people in Australia were paying income tax. To-day, the number is more than 1.700,000. As our 600,000 odd service men and women obtain their discharges the. number of taxpayers in the community will again be greatly increased. By the time demobilization hasbeen completed we may expect to havewell over 2,000,000 income taxpayers in.

Australia, and that will be a very substantial proportion of the total population. As might be expected the quantum of tax collection has been swollen greatly. The budget of 193S-39, introduced prior to the outbreak of the Avar, estimated that £76,000,000 would be collected in that financial year. The budget estimate for this financial year, which includes many months of peace, is £336,000,000. I have no doubt that when the final collections have been made for this year the amount will ba substantially in excess of the estimate. Honorable members will no doubt bc interested to note how the volume of taxation collected in Australia has grown during the last five years. In the latest issue- of the booklet. Facts and Figures made available to us by the Minister for Information (Mr. Calwell) we are. furnished with the somewhat gloomy intelligence that from the middle of 1939 to September, 1945, tha total amount of tax collected was £844,000,000. But that is not the complete story, for those figures refer only to income tax. As we all know, there are many other sources from which both direct and. indirect taxation is . obtained. As we move about from day to day we cannot avoid realizing how these taxes affect the family budget and the individual pocket. If you take what I regard as the truer figure of total tax collections, you will find that for the five years ended June 1945, the Government collected £1,651,000.000. When the present year has concluded, that will have swollen to over £2,000,000,000- an ‘ astronomic figure for this yoting country with a population of 7,000,000. We have become almost reconciled to the fact that we are, and have been for some years, the heaviest taxed people in the world; but we experience more difficulty’ in reconciling ourselves to the probability that we shall be the last country in the world to experience a substantial reduction of the enormous tax burden that we are called upon to bear. In other parts of the English-speaking world, the position is very different. Already it has been found practicable in Britain, the United States of America and Canada to make considerable reductions of taxes compared with war-time levels. The Treasurer of South

Africa, introducing his budget recently, described the proposed tax remissions in that dominion as a veritable Pandora’s Box of benefits for the taxpayers. Contrast the position in Australia. An insignificant reduction of taxation was announced in the budget last year. If. did not take effect until the 1st January of this year, and in respect of income tax it represented one-sixteenth of the amount to be collected from each individual. There were not, at that time, reductions of the enormous taxes of other kinds. The total tax collections in the present year will be very much greater than in the previous year, despite the socalled remissions. All sections of the people of the Commonwealth were expecting a spectacular- reduction of taxation at an early date, by reason of the termination of the war resulting in a reduction of expenditure on armaments and the discharge of hundreds of thousands of service personnel; but even as recently as the last few weeks, when speaking in the course of the Henty byelection campaign, the Prime Minister (Mr. Chifley) damped whatever hopes we might have had when he said that he could not offer any prospect of a reduction of taxes in the near future. Inthe absence of a clearer statement of Government policy, that is the sorry position in which we find ourselves at the present time. Members of. the Opposition consider that that statement has placed an unnecessary obstruction against normal recovery of the Australian- economy in the post-war period. We believe that substantial reductions of taxation are possible, and should be made. The Liberal party as a whole, not merely the parliamentary section of it, has announced that, if returned to power, income tax reductions will be made, aggregating 40 per cent, during the next three years. In saying that, we. do not contemplate that there shall be a trifling reduction in the first year and probably a more substantial reduction later. What we envisage is a reduction in the first year which will give a real impetus to economic recovery in Australia. I shall be most disappointed if it is not possible to state that in the first year, should we resume office, the reduction will -be at least 25 per cent, on personal income tax rates.

We consider that a .close examination of Government policy and accounts proves that to be practicable. Our views in that respect are supported by the dispassionate and very close examination of the problem which has been made by the economists attached to the Institute of Public Affairs in Victoria. They have gone to considerable pains to prove that the reduction I have mentioned should be practicable in the next three years. How tax reductions should be made is a matter of detail with which I am not required to deal on this occasion; but as this bill is aimed primarily at giving concessions which, though minor, are useful so far as they go, in order to encourage the conversion of war-time industries in’ Australia to peace-time purposes, it may be interesting to consider for a moment the comparative usefulness of substantial reductions of company tax compared with substantial reductions of personal income tax. In recent years, studies of the tax position have been made by experts in the United States of America and Great Britain. Generally, their findings go to show that it would be preferable in those countries to grant material relief in respect of company tax before dealing with the tax oh personal incomes. They point out that the high taxes on industry have four main disadvantages: They reduce business reserves and thus the rate of capital development, detract from business incentive and the willingness to undertake risky forms of investment, and tend to hold up prices and to depress wages. The conclusion arrived at was that, when the contraction of war expenditure made possible a reduction of taxation the reduction in respect of the tax on .profits should eventually be greater proportionately than that in respect of the income of individuals. The problem in Australia is somewhat dissimilar, and leads to a different conclusion. Our rates of tax on personal incomes are very much higher than the rates in the United States of America. Associated with that, we have the principle of the double taxation of company profits, which results in profits being taxed not merely in the hands of the company but also in the hands of the individual when distributed in the. form of dividends.

Consequently, the net return to the individual on his investment is very small indeed, particularly as the dividends are taxed at property rates. Although, as I- hope to show, the reduction of the taxes on companies should be substantial, the first priority in Australia to-day, if we are to restore to the employer and employee the incentive, to speed up the sluggish response which Australian industry so far has manifested towards our peace-time demands, must be such a degree of relief from personal income tax as will, lead to that expansion of production which the national economy is demanding at the present time.

Turning to the position of companies, a particularly strong case is to be made out for relief in that direction. I do not intend to spend much time in examining the main proposals in this amending bill. It is claimed that they provide some assistance to post-war industry to get back into production for the purposes of peace. If we’ examine the principal provisions, we find that they relate to a special allowance in respect of research activities conducted by Australian industries. They allow specially favorable rates of depreciation to those organizations that install amenities for their employees. They provide a favorable rate of depreciation in respect of machinery installed after June, 1945. The Government has not gone so far as the British Parliament, which has provided specially favorable rates of depreciation in respect of buildings constructed for peace-time production. There is one important and significant concession, namely, an extension of the concessional period of six months, which previously obtained in respect of technicians a.nd experts brought from overseas to aid Australian industry. That period has been extended to twelve months, and, in certain cases, where the Secondary Industries Commission gives a certificate that such a course would be desirable, the twelve months period may be extended to two years. These concessions are useful enough in themselves, but if it is claimed by the Government that that represents its policy for the encouragement of industry in Australia in the post-war years, I say that Ministers have dealt with only a fraction of that problem, and that the mass of Australian employers and Australian industries will experience little practical benefit as the result of the action taken under this measure. One would imagine that any government which bothered to peer beneath the surface would be convinced of the necessity for giving every possible encouragement to, not only the big industries, but also the small ones.

I have indicated something of the quantum of tax which governments have collected in past years from the Australian companies. It is estimated that for the financial year 1945-1946, the estimated collections from the taxation of profits will amount to £59,000,000. This sum is about £15,000,000 more than the total amount of tax collected by the Commonwealth from this source in any year prior to the war. That, of course, is only the beginning of the story. It, does not take into account the pay-roll tax, which makes a big contribution to Commonwealth revenues, and the sales tax, which is an enormous impost. Even then, we have not got anywhere near the bottom of the well. Every telephone call made by an Australian business firm, every cheque that is signed, every letter that is posted, and every gallon of petrol that is used in the course of business, carries its share of Commonwealth or State imposts, and contributes to the revenues of governments in Australia. Therefore, every business in this country, however big or small, however profitable or unprofitable, continues to be the provider of an incessant stream of dividends for governments in the Commonwealth. As each one of them represents a small gold-mine, the Government should take every possible action to see that they are kept in a healthy state, so that the payment of dividends may be maintained. It should not overlook the fact that the law of diminishing returns can apply where taxation rates are concerned no less than in other directions.

I mentioned earlier that these concessions would mainly assist the larger industries in the Commonwealth. That is undoubtedly true. The big organizations are those that bring experts from overseas, are able to expend considerable sums on research, and will get the greatest benefits from, special allowances in respect of machinery. The smaller organizations have not, in the war years, been able to build up reserves to the same degree as their larger competitors. They are mainly family concerns. The individuals engaged in those businesses have to carry the highest rates of tax, and can put very little away in reserves for expansion. But the large undertakings, with their capital position established over a long period, and concerned with the payment of moderate dividends from time to time, can set aside large reserves for expansion purposes. During the war, we have witnessed the steady concentration of business in the hands of the larger organizations in Australia at the expense of the smaller ones. It has always amazed me that a government, which claims to represent especially the smaller man, has consistently pursued a. policy which has built up the larger businesses at the expense of the smaller ones. Just how important small industries were in the Australian scheme of things immediately prior to the war is indicated by statistics contained in the Commonwealth YearBook, which show that at least 50 per cent, of industrial employment was given by organizations with fewer than 100 employees. Prior to that time the number employed in larger organizations was slightly fewer than in the smaller concerns, but during the war, with big war orders concentrated in the larger industrial establishments, the proportions changed. Last year fewer than 40 per cent, of the employees were engaged in organizations with fewer than 100 employees, whilst about 60 per cent, were employed in the bigger businesses. I believe that that trend is continuing and will be accentuated in the post-war period. There has never been a time in the history of Australia when it has been more difficult for a man with small capital reserves, but with an abundance of industry and enterprise, to establish himself. There are all the difficulties which war-time controls impose, and the further drawback that out of the balance left to him, after paying his personal taxes little remains for business expansion. That is an unhealthy trend in a young and growing country like Australia. As happened in the United States of America, small industries built up on the basis’ of the family group, or conducted by two or throe individuals of capacity, should gradually expand; but that is not the situation which has developed in Australia in recent years, and which the policy of the Government is maintaining. The solution of that problem is not to be found in u minor reduction of taxes. Lt requires a genuine and considerable reduction if the requisite encouragement is to be given to the individual. On this point honorable members “will find considerable interest in a lecture by Colin Clark, who is, I think, known to most of them. The lecture, which was one of the John Fisher series, was delivered in Adelaide just before the war, the title being, “Australian Economic Progress Against a World Background “. So many of us are apt to assume - I among them - that there is in man’s affairs a steady development towards a higher economic level, that this lecture makes extraordinarily interesting reading. The opening paragraph reads -

To regard economic progress as the normal and natural condition of human affairs is to betray the limitation of one’s mind in both time and space. Of the continents of the globe, northern Europe, America, Australasia, and Japan, have, during the last century, made genuine and striking economic progress. But in southern and eastern Europe the evidences of progress are much more dubious. The great hulk of Africa’s population remains in an entirely primitive stage of economic development; while in Asia, other than Japan (in which continent over half of the world’s population is to be found, there is evidence of actual economic retrogression during the period which we are pleased to call “ the century of progress”. Even within the favoured minority of countries where genuine economic progress has been made, the rate of this progress is often grossly exaggerated. Alleviating the colossal total of the world’s poverty will take much longer than some people think.

Australia, at the time the lecture was given, stood fourth on the list of the countries of the world as regards real income per person per year on the basis of a working week of 48 hours. The countries are listed in the following order : -

The lecturer emphasized the great economic spurt made by Australia between 1920 and 1926. He said-

From 1920 to 1920-27 came a rate of economic progress which has never been equalled at any other time in Australia’s history, or scarcely in the world.

This spurt took place during the decade following the last war. Ear from that war having had any long-term depressing effect on Australian industry and production, it seemed to have the effect of stimulating Australian enterprise during the years that followed. To-day, we find ourselves in a comparable situation. We have just concluded a war which was conducted on an even greater scale than was the last, and there are certain factors of Australia’s economy- which should, enable us to take a rosy view of the future. The country remains relatively unscathed: Industry, far from being destroyed as in some other countries, has expanded. We have an industrial population which is better trained than ever before. Before the last depression we had an unbalanced economy dependent too much on the seasons and on the wool-clip ; to-day, we have a balanced economy with secondary industries able to cater for most of our needs, and it is reasonable to suppose that during the next ten years they will be in an even better position to do so than they are to-day. Together with this, there is the pent-up purchasing power of- the people in the form of record savings deposits in the banks, and there is a greater demand for -consumer goods than ever before. There is an unprecedented demand for houses, and this will stimulate allied trades such as the manufacture of furniture, crockery, &c. Thus, there are .present all the factors required for a decade of prosperity greater than we have ever before experienced.

Unfortunately, the results so far achieved are not proportionate to these prospects. Our economy is in a sluggish state. It seems to have bogged down. There is a much slower response to consumer demands than the times would seem to indicate as proper. The reason for this is, in part, high taxation. If persons are not spurred on by a belief that extra effort will obtain for them increased economic advantages, we shall remain in the present state for a long time to come.

If those with capital to invest believe that there is not a reasonable prospect of success, having regard to the hazards which the investment of capital inevitably carries, there will not be after this war the economic spurt that was such a marked feature of our economy after the1914-1918 war. The trifling concessions contained in this measure only toy with the problem which confronts Australia. The Prime Minister does a. great disservice to his country when he says,ashe said in the Henty electorate recently, that he cannot offer any substantial reduction of taxation. The Institute of Public Affairs has shown that a reduction can be made, and we on this side promise that, if returned at the next election, it will be made. If the Government cannot give the impetus to production which a reduction of taxes would provide, it should get out of office and make way for another government, which willdoso.

Question resolved in the affirmative.

Bill read a second time.

In committee:

Clauses 1 to 4 agreed to.

Clause 5 (Exemptions).

Mr ARCHIE CAMERON:
Barker · ALP

– Paragraph c of sub-clause 1 relates to benefits under the Unemployment and Sickness Benefits Act 1944. I have no objection to this paragraph if it means what it appears to mean, but I wish to know whether, during certainstrikes which occurred recently, men who refused to work received benefits under that legislation. I cannot think of anything more immoral than that payments made under that legislation should be exempt from income tax. Before agreeing to this provision the Committee should have a statement from the Minister setting out the position. I shall reserve any further remarks until after the Minister has spoken.’

Mr LAZZARINI:
Minister for Works and Housing · Werriwa · ALP

-The position is quite clear. Any person on strike, or who refuses to work when work is available, isnot classed as unemployed. But a person who, through no fault of his own is thrown out of work-

Mr Archie Cameron:

– That is another matter.

Mr LAZZARINI:

– I take it that the honorable member is concerned only with strikers. The answer to his question is definitely that no person who is on strike, or refuses work when work is available, is eligible for unemployment relief. No such person has been paid under that act, so far as Iknow.

Mr ARCHIE CAMERON:
Barker · ALP

– The last words of the Minister contain an important qualification. He says that “ No such person has been paid under that act, so far as I know “. During the last six or seven months certain employees, as for instance, miners, ironworkers and transport men, particularly in the maritime industries, refused to do their work, thereby throwing thousands of others out of employment. I now ask whether the funds provided under the Unemployment and Sickness Benefits Act have been used to make payments to those who through the action of their fellow unionists, were unemployed ?

Mr LAZZARINI:
Minister for Works and Housing · Werriwa · ALP

.- The social service legislation referring to this matter specifically provides that men who are on strike or who refuse work when it is available cannot receive unemployment relief.

Mr Archie Cameron:

– That does not answer my question. I want to know whether the funds have been drawnon to make payments to persons who were out of work because other trade unionists, notably coal workers, ironworkers and transport workers, refused to work.

Mr LAZZARINI:

– Should any section of workers go on strike, thereby throwing men in other trades out of employment, those other workers, not being responsible for their employment, are entitled to unemployment relief. That is provided in the act.

Mr Archie Cameron:

– That is all I want to know.

Clause agreed to.

Clause 6 agreed to.

Clause 7 (Depreciation).

Mr ARCHIE CAMERON:
Barker · ALP

– This is an important provision. Paragraph c of section 54 of the principal act relates to -

Plumbing fixtures and fittings, including wall and flooring tiling, in premises acquired after the thirtieth day of June, One thousand niue hundred and thirty-eight, or installed in premises after that date, by a person carrying on a business for the purpose of producing assessable income, where those fixtures and fittings are provided principally for the use. for persona! purposes, of persons employed by bini in that business.

– The lists are available in the Parliamentary Library.

Mr ARCHIE CAMERON:

– In my interviews at the Commonwealth offices in Adelaide I was given the impression that this was information which the department did not give outto the public. The officers adopted the attitude that they would show it to me as a favour ; and I am not unused to dealingwith Government officers. It is high time that a public declaration was made of the rates of depreciation. On another occasion I had a personal argument with the Taxation Department. In respect of one’s own affairs one can get down to tin-tacks. For years the rate of depreciation on farm engines was 10 per cent.; but during the war it wasreduced to 5 per cent. Even if a farmer purchased a second-hand engine fourteen years old the rate of depreciation wasstill 5 per cent. on a residual basis. That is ridiculous, and would not be tolerated outside an economic kindergarten. I should like the Minister to say frankly what are the rates of depreciation on buildings, fences, dams, tanks, engines and the hundred and one items in respect of which the farmer is obliged to incur expenditure! My constituents will certainly be interested to know what those rates are. I was given to understand that the rates shown to me were purely an office arrangement. If a copy of the rates is available in the Library I should like the Minister to explain the secretiveness of the Commonwealth officers whom I interviewed in Adelaide last year on this matter.

Mr RYAN:
Flinders

.- I should like to deal with the non-provision of special depreciation in respect of new buildings from the point of view of the primary producer. The large majority of farms in Australia will probably be mechanized as soon as possible. Mechanization will decrease the cost of production, but we cannot have mechanization of farms without providing the buildings to house the necessary plants. The price of all machinery rose considerably during the war. In addition, the cost of erecting a building to-day exceeds by 100 per cent. the pre-war cost. The proposed concessions should be extended in order to cover buildings used for housing machinery,whether they be situated on farms or at factories. I should like the Minister (Mr. Lazzarini) to explain why that concession has not been granted.

Mr LAZZARINI:
Minister for Works and Housing · Werriwa · ALP

– The right honorable member for Yarra (Mr. Scullin) presided at a conference which considered the matters that have been raised by the honorable member for Fawkner (Mr. Holt) and the honorable member for Flinders (Mr. Ryan). The Government examined the proposals, but was obliged to reject them. Perhaps they will be reconsidered when the next budget is being compiled. One of the reasons for rejection was the desperate need to obtain building materials of all descriptions for housing.

The Commissioner for Taxation has advised me that there is no reason why the list which the honorable member for Barker (Mr. Archie Cameron) requested, should not be published. I do not know whether the honorable member was correct when he said that the information was available in the Parliamentary Library, but I shall give a copy to him as soon as possible.

Clause agreed to.

Clauses 10 to 17 agreed to.

Clause IS (Rebate of tax payable by visiting industrial experts).

Mr HOLT:
Fawkner

.- This clause deals with the rebate of tax payable by visiting industrial experts. As I mentioned earlier, the practice in the past was to allow a rebate of tax in respect of the first six months that a visiting expert stayed in the Commonwealth. That period is to be extended to twelve months, and if the Secondary Industries Commission so recommended, the period may he further extended by twelve months. In that way, an inducement is offered to technicians and experts to ‘come to Australia from other countries. One of the serious taxation difficulties, to which no reference has been made in this measure, is the double taxation of the investments in Australia of persons residing in other countries and, I assume, the income earned in Australia by persons who normally reside abroad. I am not clear regarding the difficulties of the individual, but double taxation acts as a deterrent to overseas companies establishing themselves in Australia. The reason is that taxation must be paid first in Australia on income earned here, and secondly, paid on the net income when it is remitted to the country in which the company is based. The Commissioner for Taxation went ‘abroad in an attempt to resolve this difficulty, but I gather from references in the press that his mission was not so successful as he had hoped.

One of the unhappy consequences of the continuance of this difficulty is that the United States Treasury is not so severe on an American organization earning income abroad as the British Treasury is on a. British organization earning income abroad. Possibly, the United States Treasury imposes lower rates of tax and allows some special concession on income earned abroad. “

Mr BURKE:
PERTH, WESTERN AUSTRALIA

– The United States of America allows as a rebate the amount of tax paid abroad.

Mr HOLT:

– I thank the honorable member for Perth (Mr. Burke) for that information. I do not claim to know all the details, but representatives in Australia of overseas organizations have informed me that it is one of the important factors which influence them when they are considering whether they shall establish industries here. 1 should like the Government to take the opportunity presented by the discussion of this clause to say whether it can offer any hope that this difficulty will be resolved. It would be most unfortunate if industries now based in Great Britain were placed at a serious disadvantage compared with industries in foreign countries when they attempted to establish branches in Australia. The Government may be able to indicate what progress has been made to resolve the difficulty.

Mr LAZZARINI:
Minister for Works and Housing · Werriwa · ALP

– Proposed new section 160ab deals only with the rebate of tax payable by visiting industrial experts. The wider field which the honorable member for Fawkner (Mr. Holt) ‘discussed is not covered by this provision.

Mr Holt:

– The act does not deal with it either.

Mr LAZZARINI:

– That is so. There are many difficulties to be overcome. So far as I know, they have not been resolved.

Clause agreed to.

Clauses 19 to 22 agreed to.

Title agreed to.

Bill reported without amendment: report adopted.

Bill - by leave - read a third time.

page 743

WAR-TIME (COMPANY) TAX ASSESSMENT BILL 1946

Second Reading

Debate resumed from the 20th March (vide page 437), on motion by Mr. Chifley -

That the bill be now read a second time.

Mr HOLT:
Fawkner

.- This bill is complementary to the measure which has just been passed by this House, and I do not wish to add anything to what I said when that legislation was under discussion.

Question resolved in the affirmative.

Bill read a second time, and reported from committee without amendment or debate; report adopted.

Bill - by leave - read a third time.

page 743

WAR SERVICE HOMES BILL 1946

Second Reading

Debate resumed from the loth March (vide page 401), on motion by Mr. Lazzarini -

That the bill be now read a second time.

Mr SHEEHY:
Boothby

.- This bill seeks to embody four important and desirable amendments in the principal act. First, it raises the limit on war service homes from £950 to £1,250. This increase will give to purchasers a wider choice of designs, and will be of special benefit to. ex-servicemen who have family responsibilities and require fairly large homes. In most cases, deferred pay is absorbed in the purchase of furniture and cannot be applied to the construction of a larger dwelling. The increase will also offset to some degree the increased cost of home construction. At a later Stage I shall show honorable members how building costs have increased in South Australia, and indicate methods by which, in my opinion, the cost of war’ service homes can be reduced to some degree without reducing their size. Stress has been laid on the fact that the shortage of building materials has greatly retarded the construction of war service homes. That is indisputable. However, I understand that State building authorities have a right to 50 per cent, of available building materials, and exservicemen have suggested to me that if the necessity to obtain a permit to secure the release of building materials were obviated, more war service homes could be built. What can be done in that sphere I am unable to say. In relation to the war service homes programme in South Australia, I wish to pay a tribute to the Deputy Commissioner for War Service Homes in that State, who has worked untiringly for the commission, and has done his best to assist exservicemen. Speaking on this measure, the honorable member for Balaclava (Mr. White) criticized the extension of war service homes benefits to merchant seamen. Apparently, the honorable member would not recognize the fact that merchant seamen -played a’ vital and dangerous role in the war. I disagree entirely with the honorable member’s view. Although I admit that he proved himself a worthy son of Australia in the war of 1914-1S, and in the last war. I remind him that an all-in conflict such as that from which we have just emerged is hardly a healthy matter for men work-, ing below the water line in ships on the high seas. Their employment, in fact, is very hazardous, and I consider that they have every right to the benefit of our war service homes legislation. . They have taken great risks to carry vital materials of war and troops. My mind goes back to. the time when the news came through that S.S. Hereford had been mined off Kangaroo Island, which, of course, is not very far from the shores of South Australia. I had an opportunity to inspect that vessel, and found that a hole 40 feet by 60 feet had been blown in’ its side. Another vessel struck a mine off Port Lincoln. I have before me a map of the coast of New South Wales showing the names of the ships that were sunk or damaged by enemy action during the war. Altogether, 29 ships were either sunk or damaged off that coast alone. The last war was quite unlike the war of 1914-18, when the Allies had the assistance of the Japanese navy and the Italian navy, both of which were our enemies in the conflict just ended. In this war men lost their lives even in Sydney Harbour. For those reasons, I support the claims of merchant seamen who served the Commonwealth and the Empire during the war, for inclusion in the War Service Homes Act.

Ias k leave of the House to have the map which I have mentioned incorporated in Hansard.

Mr SPEAKER:

– The question of inserting maps in Hansard was discussed some time ago, and it was found that this was a difficult matter. I suggest that the honorable member seek the permission of the House to insert in Hansard a list of the vessels sunk or damaged on the coast of New South Wales. I believe it would be ill-advised to have a map incorporated.

Mr SHEEHY:

– With the consent of honorable members I incorporate in Hansard the following list: -

Kowarra, sunk, 25th April, 1943.

Centaur, sunk, 15th May, 1943.

Limcrick, sunk, 25th May, 1943.

Caradale, torpedoed, but no explosion, 12th May, 1943.

Portmar, sunk,16th June, 1943.

Ormision, torpedoed, salved, 12th May, 1943.

Fingal, sunk, 5th May, 1943.

Peter Hi Burnett, torpedoed, salved, 22

January. 1943.

Wollonbar, sunk, 29th April, 1943.

Wellen, shelled, damaged, 16th May, 1942.

Nimbin. sunk. 5th December, 1940.

LydiaM. Child, sunk, 25th April, 1943.

Allara, shelled, salved, 23rd July, 1942.

Miliimumul, sunk, 26th March, 1941.

Star King, sunk, 10th February, 1943.

Mobilube, torpedoed, salved, 18th January, 1943.

Kalingo, sunk, 18th January, 1943.

Guatemala, sunk, 14th June, 1942.

Iron Chieftain, sunk, 3rd June, 1942.

Kultabul, sunk, 31st May, 1942.

Orcstes, shelled, damaged, 8th June, 1942.

I.S.Livanos, sunk, 20th July, 1942.

Coast Farmer, sunk, 21st July, 1942.

Dureenbee, shelled, wrecked, 3rd August, 1942.

Robert J. Walker, sunk, 25th December. 1944.

Wi’liam Dawes, sunk, 22nd July, 1942.

Iron Knight, sunk, 8th February, 1943.

Iron Crown, sunk, 4th July, 1942.

Recina, sunk, 11th April, 1943.

It was an “ all-in “ war, and the merchant seamen had a large share in bringing victory to our side.

Much has been said about the cost of house construction at the present time. The latest available report of the War Service Homes Commission, that for 1944-45, shows that the average construction cost of war service homes is £912 13s. 5d. The average cost of a house and the land on which it is built is £1,0321s. 3d. I see nothing to quibble about in those figures. In South Australia to-day, good five-roomed brick homes can be built for £900, a fact which may be of interest to honorable members from the eastern States. An examination of the comparative costs of building materials now and before the war may be of value in considering this matter. During the war of 1914-18, the cost of iron increased to £80 a ton. However, the present price of iron is about £30 a ton, the price pegging regulations having held it down almost to the pre-war level. Before the war, the inside plastering of a home in South Australia cost1s. 9d. a yard and to-day the cost is 2s. 3d. a yard, representing about £7 for the house. The cost of ceilings before the war was 4s. 6d. a yard, and to-day it is 5s. 9d. a yard, which represents about £5 for the house. After studying costs and considering various means of economizing without affecting the durability of houses, I have come to the conclusion that the cost of a house estimated to be worth £1,200 to-day can be reduced by £60 or £7.0. This saving can be achieved by having the bricks of inside walls laid on their edges and set with cement mortar. I have had extensive experience of home-building, and I know that this method can be employed with satisfactory results. It requires fewer bricks and offers an admirable way of reducing housing costs. I am anxious that everybody should be properly housed, and I should like every man to have the chance of owning his own home. I have said before, and I reiterate now, that interest charges on capital outlay for home-building should be reduced as low as possible so that ex-servicemen and others may be able to own their homes within their lifetimes. The ideal rate of interest would be one merely sufficient to cover administrative expenses. The report of the War Service Homes Commission states that delay is caused by the necessity for architectural work. The Commission has about 500 designs for homes. It should adopt the system used by the State Bank of South Australia. A contractor for the erection of a house under the bank’s scheme is provided with specifications, and with a ground plan of the projected building on which the roof is indicated by dotted lines. That is all that any contractor should need to build a home. If the War Service Homes

Commission adopted that method, and employed inspectors to examine houses in course of erection, its building programme could be speeded up considerably. Under the present system, tenders are called by advertisement for the construction of homes. Then, contractors have to be supplied with the architects’ plans. Then there is a further delay, until estimates are submitted by the contractors, before work can be undertaken. Under the bank’s system, the contractor has specifications and the “plan for the type of building chosen by the prospective owner, and uo delay is necessary. There is not much work in the construction of a cottage which would require any departure from the ordinary specifications, r make this suggestion to the Minister in the hope that he will give serious consideration to it. It is a good way of speeding up construction of war service homes.

I now raise another’ matter which affects “diggers” of the 1.914-18 war. I do so because, on a previous occasion in this House, I stressed the difficulties experienced by some ex-soldiers of the 1914-18 war during the economic depression. I cited particular cases. Since then I have had to wait some time for an opportunity to reply on this subject to statements made by the honorable member for Richmond (Mr. Anthony).

Mr SPEAKER (Hon J S Rosevear:

– Order ! The honorable member would not be in order in referring to that subject during consideration of the bill now before the House.

Mr SHEEHY:

– I bow to your ruling, Mr. Speaker. I hope that something will be clone to implement the suggestions which I have made, particularly with reference to the plans and specifications of war service homes, with a view to speeding up the programme, and also with reference to the reduction of interest rates so as to enable ex-servicemen to acquire complete ownership of their homes as early as possible.

Mr FRANCIS:
Moreton

.- This short measure contains four important specific provisions. The first is designed to increase, from £950 to £1,250, the maximum amount that may be advanced for war’ service homes. The second provision relates to the value of land on which war service homes may be erected. The War Service Homes Commission has held some blocks since the depression, and their value has now increased to such a high level as to make it impossible for a soldier purchaser to. pay their present value. The Government has wisely decided that the land on which a war service home is to be erected shall be assessed at its fair value or its actual capital value, whichever is the less. I commend tha Government for this proposal which will confer a distinct advantage on the prospective borrower The third provision enables the War Service Homes Commission to grant loans on the. security of Crown lands leased in perpetuity from a State. This is an innovation which I have advocated in this House on many occasions, as has also the honorable member for Wide Bay (Mr. Corser). At some of the seaside resorts on the south coast of Queensland only leasehold land - can be obtained, this provision will extend to those entitled to the benefits of the legislation a privilege which they have not hitherto enjoyed and will be particularly welcomed by many’ exservicemen living in mining areas and coastal towns of Queensland.. The fourth provision extends, to all members of the mercantile marine working on the Australian coast the benefits of the Avar service homes legislation. I am opposed to this proposal. Under the original act eligibility for its benefits was restricted to members of the fighting forces who entered a theatre of Avar, and to a limited number of munition workers who went to the United Kingdom during the war of 1914-1S to assist in the manufacture of the munitions there - probably their number would not exceed 100 - and members of the mercantile marine who risked their lives to keep the sea lanes free of a marauding enemy. Under the amendment proposed by this bill, ‘however, h seaman who sails across the entrance to Port Phillip Bay, from say Point Nepean to Geelong, or whose ship is engaged in trading between the headlands of .Spencer’s Gulf, will in future become entitled to apply for a war service home-. That is not only unreasonable but also distinctly unfair to those who have risked their lives- in the defence of this country or to keep safe from enemy activity the trade routes of the world. It is especially so when we consider the large numbers” of servicemen who to-day are awaiting war service homes and who probably will have to wait another twenty years before material and labour are available in sufficient quantities to permit free building. This watering down of the conditions of eligibility is reminiscent of the. Government’s attempt to water down conditions of eligibility under the rehabilitation legislation. Seamen foremen employed on the Australian coast receive £10 14s. 6d. a week including special war risk payment, but those who fought on the battlefields of the world received nothing but their service pay.

Very many members of this House and organizations of returned servicemen throughout the country have pressed for two years for an increase of the maximum amount Of the loan. The only comment I make upon the Government’s proposal in this connexion is that it has been too long delayed. Money alone will not build war service homes; adequate supplies of building materials, furnishings, fittings, and equipment of all descriptions, together with skilled and semi-skilled labour must be provided. With the inflated costs of labour and materials, it is obvious that the maximum amount of loan would have to be increased. On the 7th August, 1945, Mr. F. E. O’Connell, manager of the Timber Merchants Association, of Melbourne, said this regarding the cost of building labour -

The’ cost of labour is the biggest single item in the cost of building, and this could bo reduced appreciably if workers could be induced by their union officials to do a fair day’s work for a fair day’s pay. For the last three or four weeks, however, certain union officials have been” prepared to adopt “ goslow”’ tactics on works being carried out under the Government.

Mr SPEAKER:

– Order ! The honorable member is not entitled to deal with general building costs during the debate on this bill.

Mr FRANCIS:

– I was about to show that the maximum amount of loan is not sufficient because ‘ of high . costs in the building industry. Mr. O’Connell continued -

On one important work the workers are going so slow that they have almost stopped. These go-slow tactics are the union’s attempt to get even with employers because Judge Kelly cancelled the Defence Workers’ award.

What a sad disillusionment, what a tragic blow it will be to the men who return only to find that they are unable to obtain a war service home! I appeal to the Minister to make every effort to ensure that the necessary materials will be supplied. That can be done only in cooperation with the States. I urged the Minister many times last year to release from the services every man who could swing an axe with skill, for the felling of trees in the mountains and scrub, as well as all those who could work in timber mills, who could make bricks and tiles, and who could produce pipes and galvanized iron. I said that hundreds of thousands of skilled workers would be available as soon as the war was over for the building of war service homes and homes for civilians. The Minister then replied that all the materials required were available, and the Minister for Repatriation (Mr. Frost) said that in regard to money “ the sky was the limit”.. I now ask that ex-servicemen be given the homes which for too long they have been denied.

Mr DALY:
Martin

.- The War Service Homes Bill is a very important measure. Before making observations on the amendments to the act that are proposed in the bill, I shall reply briefly to some of the statements of the honorable member for Moreton (Mr. Francis). I am not greatly influenced by the “ crocodile tears “ which he shed in regard to war service homes and the general set-up of the organization that is responsible for them. In the first place, the honorable gentleman stated that he was emphatically opposed to members of the. mercantile marine receiving any consideration under the act. He cited the case of a man who will be entitled to a war service home even though his service during the war consisted only of his having sailed from Point Nepean to Geelong. In citing that case, he rather exaggerated the position. The circumstances of such a man would not differ very greatly from those of a man who, having enlisted for overseas service, would be entitled to a war service home even though, through no fault of his own, he ‘ had not left Bankstown during the period of the war. The men who oran the risk of sailing in dangerous waters are as much entitled to a war service home as is any other person for whom the act makes provision.

The honorable gentleman also referred to building costs. I regret that it has been found necessary to increase from £950 to £1,250, the maximum amount to be provided, mainly because of higher building costs. No matter what party » we may belong to, all of us should endeavour to ensure that building costs will be kept down to the absolute minimum., so that the average wage-earner or ex-serviceman may be able to obtain a home which he will have a reasonable chance of paying for. Unfortunately, building costs have risen. . Many factors are responsible for that. Unlike the honorable member for Moreton, I do not “ pass the buck “ to the workers. It is all very well to assert flippantly that the men will not work, and that there are industrial troubles which cause costs to rise. Not many years ago, State governments composed of men of the same political ilk as honorable members opposite, sold the State brick works’ in New South Wales, which would have been largely instrumental in keeping, building costs at a reasonable level.

Mr SPEAKER:

– Order ! I have already ruled that the cause of ‘the rise of building costs cannot be debated extensively.

Mr DALY:

– I bow to your ruling, sir. I considered it necessary to say that honorable members opposite are hardly fair when they “ pass the buck “ to men who are not in any appreciable measure responsible for the rise .of building costs that has taken place. Honorable mein.bers opposite are remarkable in that they are disposed at all times to boost the magnificient Labour Government that is in. office in New Zealand. One of the reasons why Australia is somewhat backward at present in regard to the provision of war service homes and other things, is that it did not have a Labour Government as early as did New Zealand. It is all very well to acclaim what New Zealand” is doing in regard to housing, and to cast aspersions on efforts to the same end in Australia. The figures cited by the honorable member for Moreton in regard to the New Zealand situation’ were misleading, and must be refuted. The Commonwealth Government is faced with the same circumstances as the Government of any other country, in regard to building construction. It is not short of money, but is handicapped by lack of man-power and materials, am] there is a definite lim i: to the resources available for home building. The Government considers that the ideal approach to the matter is for the various State governments, in co-operation with the Commonwealth, to build a number of houses, a proportion of which -shall be available to ex-service personnel. An agreement between the Commonwealth and the States with regard to the matter was reached at a conference of Commonwealth and State Ministers, and of the houses now being erected in the various States not less than 50 per cent, are being made available to ex-servicemen. With the permission of the House I shall incorporate in Hansard the following table showing the number of homes allocated to ex-servicemen under the Commonwealth and State housing agreement up to the 31st December, 1945 :-

lt will be seen that of 3,1S8 houses allocated throughout the Commonwealth, 1,839, or 59 per cent., have been allocated as required by section 9 of the Commonwealth and States housing agreement. It is interesting to note that in one small part of my electorate about ISO houses are being erected. That is more than the total number built by the anti-Labour governments which have been in power in this country during the last 20 or 30 years.

Those who paint a gloomy picture with regard to war service homes should remember that the position is not so bad as it may appear. If the Commonwealth Government built a greater number of war service homes than at present, as suggested by the honorable member for Moreton (Mr. Francis), it would merely cause fewer homes to be built under the various State schemes, because it would correspondingly reduce the limited supply of building materials now available to the States.

We cannot fight a war and send many thousands of our able-bodied men overseas, thus taking them out of essential industries, and at the same time have houses built at as high a rate as in normal times. I shall not be happy until every ex-serviceman and every civilian who needs a home can obtain one at a reasonable rent, or ‘ at a fair purchase price. I commend the Minister for Works and Housing (Mr. Lazzarini) upon the desirable alteration for which the bill provides of the conditions under which war service homes are to be built. The provision in clause 4, which will increase the maximum permissible expenditure on a war service home from £950. to £1,250 is long overdue. I hope that all land available for the building of war service homes will be utilized ‘at an early date. The bill has my cordial support, as it provides for changes which will confer on ex-service personnel benefits to which they and their families are justly entitled.

Mr HARRISON:
Wentworth

– This bill contains matters of moment to ex-service men and women and others who will ultimately obtain war service homes, but we should not lose sight of the precedent established after World War I. when war service homes were provided as a special recognition of the sacrifices made by members of the fighting services. The bill now before us is designed to extend the enjoyment of a privilege formerly confined . to ex-service personnel. It follows a precedent established by the present Government with regard to measures formerly designed for the benefit of members of the fighting services, so that persons whom the Government selects may receive the benefit of this legislation. We saw that policy adopted in the Reestablishment and Employment Act, and we now find it repeated in connexion with the War Service Homes Act. The honorable member for Martin (Mr. Daly) rightly said that this bill is designed, not only to give merchant seamen an advantage, but also to grant a benefit to men who did not leave Australia during the recent world war.

Mr Chambers:

– Some of them wished to go overseas but were not able to do so.

Mr HARRISON:

– Those who fought overseas are worthy of added recognition. These members of the services who did not leave Australia, possibly for reasons beyond their control, had the advantage of living in safe bases practically under peace-time conditions. Why should the base “ wallahs “ be granted the same benefits as those who made blood sacrifices overseas? I believe that the merchant seamen should not be included in a measure of this kind. In view of the fact that the War Service Homes Act was designed to recognize the services of our fighting men it should be used exclusively for that purpose. A .measure is already on the statute-book relating to merchant seamen and recognizing their war services. That gives them the advantage of a war loading in respect of their pay. Our fighting men received no extra payment for going into the firing line and doing battle to save the people of Australia and preserve their standards of living. They fought for a rate of pay which was a mere bagatelle, whereas the merchant seamen received a war loading which gil ve bini a handsome wage, in comparison with the payment made to our fighting men. I do not desire to detract from the bravery of the merchant seamen who carried our troops through danger zones and into the fighting arenas. I have the utmost regard for them, but if they have not received sufficient recognl:lon of their services, , the Government should be prepared to submit a separate measure for that purpose. If the Government desires to give special recognition to the seamen who have risked life and- limb, let it do so; but this bill will produce fantastic anomalies. Seamen who have travelled from port to port in Australia, and have never experienced danger greater than that involved in making a trip from Circular Quay to Manly, are’ to receive recognition similar to that to be given to men who fought on the Kokoda Trail, or who suffered the loss of limbs or eyesight. This bill has been designed to cut across an important principle that has been established in respect of measures such as the War Service Homes Act. Men who have never smelt danger should not be placed on the same footing as those who have made blood sacrifices. I do not wish it to be said that I blame the men who wished to fight overseas but were not permitted to do so. Yet that is no reason why merchant seamen should receive the same consideration as others who made blood sacrifices. Whilst commending certain features of the bill, which I regard as of great value to ex-:members of the fighting services, I consider that the Government is largely destroying the value of the measure by including among the beneficiaries men who have no valid right to be included. If the merchant seamen are worthy of special recognition - and many of them did go into the danger zones and are worthy of consideration - they received it in ihe ‘form of a- war loading. Fantastic wages were received in some instances. Not only did seamen get f/om lis. to 16s. a day, as compared with the 6s. 6d. paid to our fighting men, but. also seamen who took a dredge around the Austraiian coast were paid up to £78 a month. The first cook employed on the dredge received £S6 10s. a month and the second cook, £65 10s. If the Government wishes to recognize the services of merchant seamen, let it bring down a measure to deal with the matter, and I shall give it the support to which I think it is entitled, but I do not wish a bill designed to benefit ex-servicemen to be cluttered up with the extraneous matters which this measure contains.

Mr RYAN:
Flinders

. -This bill embodies several amendments of the War Service Homes Act, and one of them provides for an increase of the maximum advance which may be made in respect of a war service home from £950 to £1,250. If £950 was considered a reasonable limit in 1935, how can £1,250 be regarded as reasonable now, seeing that costs have risen enormously in the meantime? The Minister ought to know more about housing costs than I do, but my personal experience is that prices have risen by from 80 per cent, to 100 per cent, since the beginning of the war. The increase of the maximum amount allowable for war service homes is out of proportion to the -actual rise of costs, and therefore I ask the Government to consider raising the limit by another £300. We do not want to put men who served Australia well into indifferent houses. As an instance of the greatly increased cost of building, I mention that in 1939 I had a cottage built for one of my employees. It was constructed of fibrocement, and although it did not have all modern conveniences, it had proper sanitation, and water and electricity were laid on. That cottage cost £600, exclusive of the land on which it was built. I now wish to build a house for another employee, and have consulted the same architects, who say that a similar house would now cost £1,200. Even at that cost, the house would not be suitable for a returned serviceman with a wife and family; it would not be big enough nor would it be sufficiently well constructed. I urge the Government to increase the amount which may be granted for the construction of homes for ex-servicemen. It is, however, useless to increase the permissible amount if houses arc not to be built. “We have been told that the Housing Commission in Victoria has built very few homes during the last five years. The number of houses now under construction is small compared with the houses being erected in other parts of Australia for civilian use. Figures supplied to me in this connexion arc striking. They show that whereas 1915 applications for homes were received in 1944 only nine houses were built. In the following year, eight homes were completed notwithstanding that applications for homes totalled 3,500. In the present year 65 homes were completed to the 28th January. It has been said by some honorable members, including the honorable member for Martin (Mr. Daly), that the comparison made by the honorable member for Moreton (Mr. Francis) between the number of houses constructed in Australia and in New Zealand is wrong. The honorable member for Moreton said that in New Zealand 2,239 homes were built for exservicemen to the 31st January, 1946, whereas in Australia only 69 homes were built in the same period. The honorable member for Martin explained that the homes built in New Zealand comprised all the houses allotted to soldiers, whereas of the houses built by the Australian States for soldiers, 1879 have been handed over to ex-servicemen. I point out first, that the conditions under which homes are built by the States and then handed over to ex-servicemen are not the same as under the “War Service Homes Act. if the States can build houses and hand them over to ex-servicemen. I want to know why the War Service Homes Commission cannot do so. The statistics do not reflect credit on the com mission. Considering the support that it should havereceived from the Commonwealth Government, the commission ought to have constructed more than 69 homes during the war. This is a matter which the War Service Homes Commission and the Minister for Housing should investigate. If the act is to be of any benefit to ex-servicemen, a much larger number of homes should be constructed. Many hundreds of applications for homes are already in hand, and others are coming in daily. I know th at honorable members generally regard the situation in regard to war service homes as unsatisfactory, and are anxiously looking for an early improvement.

Mr TURNBULL:
WIMMERA, VICTORIA · CP

– Ex-servicemen throughout the country will appreciate the increase of the maximum advance for homes which is contained in this bill, because they have found that the greatly increased cost of building has made it impossible to get suitable homes constructed within the limit previously permitted.

– We will look at all cases on their merits. They are few.

Mr ARCHIE CAMERON:

– I direct the Minister’s attention to the fact that clause 2 provides -

This act shall come into operation on the day on which it receives the Royal Assent.

Mr Lazzarini:

– That is true.

Mr ARCHIE CAMERON:

– So the Minister cannot make this legislation retrospective, unless a clause providing for retrospectivity is inserted.

Mr Lazzarini:

– The honorable member will be surprised.

Mr ARCHIE CAMERON:

– I should not be surprised at anything the Government tried to do. but good legislation and sound administration carries the principle that the law shall state what the Government has the power to do; and if this bill cannot come into operation until it receives the Royal Assent, obviously the Government cannot make it retrospective, unless an amendment to that effect be made. Therefore, in the interests of those concerned, it is only fair that the Government should give serious consideration, before we go into committee, to the acceptance of the amendment I have suggested. I do not want to force anything on the Government.

Mr Lazzarini:

– The honorable member would notbe allowed to do so.

Mr ARCHIE CAMERON:

– But I havebeen known to insist on the bells being rung for a division, and I will do so if the Minister is not able to see reason between now and when clause 7 is reached in committee. Those are the important points. It is useless for the Government to talk about housing schemes for the soldier, or anybody else, until it attends to the first essential, the production of adequate materials. Unless that be done the Government, instead of engaging in comforting talk as it has up to the present, must say to the soldiers, “ Until certain men are prepared to work, especially in New South Wales, you boys will have to do the best you can. You can go and live with mother “.

Mr LAZZARINI:
Minister for Works and Housing · Werriwa · ALP

– in reply -I have no desire to engender heat in the debate. The constructive criticism, offered by honorable members opposite will be carefully considered, and any amendment of this legislation deemed to be necessary in the light of experience will be made. I admit that up to the present only a. limited number of war service homes has been constructed. However, the honorable member for Wentworth (Mr. Harrison), the honorable member for Moreton (Mr. Francis), and the honorable member for Balaclava (Mr. White) simply endeavoured to make a political football of the soldiers’ needs. Other honorable members opposite did not attempt to do so; their criticism will be carefully considered by the Government.

Honorable , members opposite who believe that under the conditions that have operated during the last few years it was possible for the Government to embark on an extensive scheme of building war service homes in accordance with the traditional policy of the War Service Homes Commission are just hoping for the impossible. But I hope that as the result of this measure and of departmental action which will be taken in co-operation with housing commissions in each of the States, which now control supplies of building materials-, we , shall obtain a greater now of materials and shall be enabled to launch a reasonable programme of construction within the near future. The honorable member for Wentworth spoke only on behalf of the man who served outside Australia, the man who sacrificed

Ii is blood. That is a new argument for honorable members opposite, because the original War Service Homes Act which wa.= introduced after World War I. by a. _ government which they supported provided that every man who volunteered for the Australian Imperial Force, whether he left Australia or not, should be eligible for a home. This bill does not alter that provision. In that respect it follows the policy embodied in the original act. ‘The honorable member for Wentworth, apparently, can be speaking for only himself in (hat regard. 1 doubt whether he really gave serious thought to this matter when he was a member of a previous government. He may have voiced in Cabinet the views he has just expressed, but he has certainly not done so elsewhere. The honorable member for Flinders (Mr. Ryan) said that if other housing commissions could build homes throughout Australia the War Service Homes Commission should be able to do likewise. The War Service Homes Commission does not propose to build homes under the same conditions as will be observed by State housing, authorities,’ because it seeks to give to the soldier and his wife a home to their liking. Applicants are permitted to make a choice from hundreds of plans. If none of those plans satisfies them the com- . mission will accept plans prepared by their own architect provided all relevantconditions under the act are observed. In that respect the commission observes a policy that was laid down long before the present Government took office. That policy will enable the commission to obviate jerry-building. The commission does not build great groups of homes to a common pattern, but aims to give to the soldier and his wife the right enjoyed by every other citizen who can afford to buy or build a house to obtain the kind of home which they desire. When the housing agreement was. made with the States, the Commonwealth, realizing that that was the policy of the commission, insisted that at least 50 per cent, of the homes constructed by State authorities must be rented to returned soldiers until such time as it was possible for the commission to build homes to their own liking. The fact is that in practically every State 60 per cent, of homes so far constructed by State authorities have been let to returned soldiers. The honorable member for Balaclava urged that the maximum advance of £1,250 should be increased. The Government stands firmly by that limit. However, this legislation is not unalterable, like the laws of the Medes and Persians. Twelve months hence, when this Government will still be in office, the legislation will be reviewed in the light of experience; and should it be necessary that limit will be increased. However, we hope that the flow of building materials will be increased as the result of action now being taken by the States :<> mechanize brick kilns and to improve organization, and that building costs will decrease. If that hope i3 realized the advance of £1,250 will be sufficient. I repeat, that if it be found to be notsufficient, the Government will not hesitate to ask Parliament to raise the limit.

Most opposition has been expressed to the extension of the benefits of this legislation to merchant seamen who served during the war off the Australian coast. I have here a copy of last week’s Sunday Sun, in which appears a map showing the number of ships sunk off the Australian ea3t coast, and the locations of sinkings during the war. It shows that 29 Australian ships were sunk and eleven damaged as the result of enemy action. The provision to which honorable members opposite object was inserted in the original act after World War I. Admittedly, it applied only to merchant seamen who had served on ships overseas, but fortunately, no hostile submarine operated off the Australian coast in 1914-1S. Consequently, merchant seamen serving in ships in Australian waters took no risk in World War I.

In 1941, the honorable member for Fawkner (Mr. Holt), as Minister for Labour and National Service, introduced a bill to amend the War Service Homes Act. Why did not honorable members opposite insist then that ha should not commit the Government to give serious consideration to the proposal that, merchant seamen who had- served in ships off the Australian coast after the outbreak of war in 1939 should be eligible for the benefits of the War Service Homes Act. Replying to representations by honorable members on this side of the House, he said - 1 appreciate that some hazards in Australian waters are just as great as those which are experienced by seamen in service abroad. . . I assure honorable members that this point will receive full and sympathetic consideration by the Government. .Normally I would suggest .that wc defer this measure until the Government has had a;i opportunity to consider the submissions of honorable members; but, in view of the f act that the Parliament will bo in recess for some weeks, and any deferment of .the bill might hold up aid which otherwise could be given to men or their dependants, I suggest that the bill be passed as it is now drawn. If that be done, I shall bring under the notice of the Minister for War Service Homes the representations made byhonorable members during this debate and ask him to consider them during the recess.

The honorable member was not speaking irresponsibly, as the honorable member for Barker does in this chamber. He spoke as a responsible Minister in charge of a bill, and made that definite and considered statement. If this principle is so wrong, why was not the honorable member for Fawkner compelled to abandon it in 1941? Yet he promised that the government of the day would .’consider it carefully and sympathetically

The Government has decided that members of’ the mercantile marine who served in ships off the Australian coast after the commencement of World War II. have taken serious risks. The bones of some of them are now lying at the bottom of the sea off the Australian coast. Merchant seamen took the risk which soldiers and sailors took. In reply to the objection raised by the honorable member for Wimmera (Mr. Turnbull), I point out that merchant seamen will not be able to apply for war service homes until this bill becomes law. Thousands of applications have already been lodged with the War Service Homes Commission which deals with them in the order in which they are received, and for that reason, any applications which may be lodged in future by merchant seamen will be low on the list.

Mr TURNBULL:
WIMMERA, VICTORIA · CP

– The ‘ applications which have already been lodged by servicemen will have priority over any applications that may be lodged by merchant seamen ?

Mr LAZZARINI:

– Certainly ! I now desire to deal briefly with the charge that this Government has erected only a small number of war service homes. I have already informed the House that this Government considered that 50 per cent, of the homes which are erected by the housing commissions of the States should be allotted to ex-servicemen. They are entitled to that privilege. The honorable member for Moreton. (Mr. Francis) declared that during the war of 1914-18, the government of the day built war service homes. I am not impressed by that statement, because the original act wasnot passed until 191S. Therefore, few, if any, war service homes could have been built during World War I. Apart from . that, let us examine, the ability of Australia to build war service homes during the two world wars. If this Government had been able to build three houses for every one thousand that, were built in 1914-1S, it would have done an excellent job. In the war of 1914-18, Australia was not threatened with invasion, as it was in the last war. After Japan entered the war, we were compelled to divert ‘to the armed services materials which normally would have been used for building. However, I shall not. weary the House with a repetition of facts which .are known to every one. Honorable members opposite in criticizing this bill, are again playing the game of politics. They will play politics with any subject, and even with servicemen. The truth is that after Japan entered the war, it was physically impossible for the Government to build war service homes.

Mr Archie Cameron:

– A few days ago, the Minister contended that the Government had. built war service homes during the war.

Mr LAZZARINI:

– Nothing of the sort! From 1939 to 1941, very few persons were eligible for war service homes. Before a serviceman may apply for a war service home, he must be discharged from the forces. That provision was inserted in the act by a non-Labour government. Applications for homes increased as the war progressed. In 1941-42, 160 applications were received in New South Wales, 47 in Victoria, 9 in Queensland, 45 in South Australia, 24 in Western Australia and 10 in. Tasmania. In 1942-43 applications were: New South Wales 191, Victoria 95, Queensland 25, South Australia 81, Western Australia 33 and Tasmania 23. In 1943-44. when numbersof men were being discharged, applications for war service homes increased appreciably; they were: New South Wales 66S, Victoria 511, Queensland 126, South Australia 190, Western Australia 172, and Tasmania84. For the first eight months of 1945-46, the number of appli- cations totalled 7,882. The War Service Homes Commission has advised me that many of the applicants do not desire to build at the present time. They are waiting until this amending legislation becomes law, so that they may derive the benefit of the increase of the statutory limit from £950 to £1,250. During the regime of the Labour Government, the War Service Homes Commission has implemented a portion of the act which was never given effect while honor- able members opposite occupied the treasury bench. I refer to the provision which permits an exserviceman to build his own home privately, if he is able to do so, and to have plans prepared privately. An applicant may go to the office of the War Service Homes Commission in any State and select one of 400 or 500 plans available to him. This service is provided free of charge. If he cannot find a plan to suit his requirements, he may employ his own architect and have a special plan prepared. He may also have a home constructed on his own land if he so desires, provided certain standards are adhered to. The War Service Homes Commission owns housing blocks in every State, and an applicant may select a block and have his home built by a private builder, either to a plan provided by the commission or to a plan of his own. We are hopeful that with the passing of this measure, and the appointment of liaison officers between the commission and the housing authorities in the various States, a larger share of available building mate rials will be given to the commission. I can assure honorable members that there will be no repetition of the jerry-building which was a feature of war service home.? construction after the last war. On that occasion some homes were so poorly constructed that bricks could be pulled out of the walls with the bare hands. Hundreds of thousands of pounds were wasted on houses which practically fell down on the occupants.

The Government has introduced this amending legislation to facilitate the erection of war service homes. The new provision enabling homes to be built on leasehold will be a big advantage in Queensland, where, because of land tenure conditions, the activities of the commission have hitherto been restricted. I commend this bill to honorable members and hope that it will have a speedy passage.

Question resolved in the affirmative.

Bill read a second time.

In committee:

Clauses 1 and 2 agreed to.

Clause 3 (Definitions).

Mr HOLT:
Fawkner

.- This clause provides for the inclusion of merchant seamen in the list of persons eligible for benefits under the War Service Homes Act. As the Minister for Works and Housing (Mr. Lazzarini) has introduced my name into the discussion and has referred to certain comments made by me some time ago, I take this opportunity to say something in relation to the object of this clause. It was interesting to be reminded of certain évents which, quite frankly, I had forgotten during the intervening years. However, I do not rise now to retract anything that I said at that time. I merely wish to draw the attention of the committee to two developments in regard to merchant seamen which have occurred since my earlier remarks were made. The first of these is that, in view of the hazards to which merchant seamen were subjected during . the war, a carefully graduated scale of bonus payments bearing direct relation to the risk involved was worked out. The position of merchant seamen, therefore, was different from that of servicemen who were undergoing risks, in some cases, perhaps, not greater than those of merchant seamen, but in other instances very much greater. The servicemen had a standard rate of pay irrespective of the risks they were undergoing, whereas merchant seamen received bonus payments to compensate them for the hazards of their employment. Another important difference between the two groups was that merchant seamen were pursuing their normal calling, and therefore had opportunity for advancement in that calling, whereas servicemen, except the relatively few professional soldiers, were engaged on a task very far removed from their peacetime avocations. The theme running through the whole of the rehabilitation legislation of the Government is the obligation which rests upon the community to restore to their peace-time opportunities and occupations persons whose civil careers had been interrupted by their services to their country. I believe that that, in the first place, constitutes an important distinction between servicemen and men of the merchant navy. Secondly, we should not allow this fact to slip from our minds: Whilst there may have been very good reason for Us to view sympathetically the claims of merchant seamen during the war, I do not think any of us will commend the attitude that these men have adopted since the end of hostilities, so far as war risk payments are concerned. It is almost incredible that seven months after the end of hostilities in the Pacific, merchant seamen should still be receiving their high war-risk bonuses. The current order of the Maritime Industries Commission prescribes a 25 per cent, bonus on interstate and intra-state ships trading south of Townsville and Port Hedland, 15 per cent, for St. Vincent’s Gulf, 33^ per cent, for interstate and intra-state ships north of those points, and 50 per cent, for overseas ships going north of Townsville and Pert Hedland, from their last Australian port on the outward voyage to their first Australian port on the homeward voyage. So, we have carried into this peace-time period, very substantial bonuses which have no relation to the hazard that the seamen are called upon to accept.

My final comment on this clause I make on the assumption that all members in this chamber have as their prime objective the construction of homes, not merely for ex-servicemen or merchant seamen, but also for the community as a whole. I believe, however, that the Government is trying,, in some respects, to devolve responsibility for the construction of these homes on to State instrumentalities and State governments. The consequence of that, a3 I have already observed in Victoria- ‘

THE CHAIRMAN (Mr. Riordan).Order ! I ask the honorable member to confine his remarks to the clause now under discussion.

Mr HOLT:

– I was endeavouring to save the time of the committee. The remarks that I was about to make are relevant to clause 4, and in view of your ruling, Mr. Chairman, I shall reserve further comment until that clause is before the. committee. The Commonwealth Government has passed over to the State governments many controls which it exercised during the war. Its justification for this policy is the necessity for restricting building activity to home construction only. On paper that appears to be very desirable, but in practice it does not work out very well. If the Minister wants homes to be constructed as rapidly as possible, he will not achieve his end by restricting industry for the benefit of one special section. In order to prove my point, I refer to what happened in the last year of the Menzies Government’s administration. In that year, a record number of homes was built in Victoria. In the same period a record general construction programme was carried out in that State. The one helped the other. Artisans passed from one job to another, and, as the building industries were expanded to meet the demand for one kind of construction, they were able to handle other kinds as well. That sort of expansion will not be achieved by confining building operations to one particular group. If the Minister wants the building industry to expand, he should remove, as far as possible, the restrictions now in force. If he fails to do so, he may find that the policies adopted by State governments, from the best of motives, will nullify the development which he seeks to encourage.

Mr FRANCIS:
Moreton

.- I draw attention to sub-clause 3 (d), which reads -

Section four of the Principal Act is amended -

by omitting, from paragraph (f) of that definition the words “port other than “ and inserting in their stead the words “ other port, including “;

It appears to-be very innocuous at first glance, but it proposes to grant to merchant seamen who travelled between ports within a State during the war the special benefitof the war service homes legislation, which was designed primarily to assist members of the fighting forces to obtain homes at reduced costs. The war service homes scheme, in its present form, provides one of the easiest means of purchasing a home ever offered. This bill introduces an entirely new principle into the scheme. As I said in my secondreading speech, although the Minister for Works and Housing (Mr. Lazzarini) probably did not appreciatemy point, the original act was designed specifically to assist members of the fighting forces, persons who went to Great Britain to make munitions, and merchant seamen who travelled overseas into theatres ofwar. I definitely oppose the inclusion of men who were engaged in the merchant, naval service between certain Australian ports only. If the Government wishes to grant some measure of assistance to those seamen, it should introduce legislation for that special purpose. Thousands of exservicemen are to-day awaiting a chance to build war-service homes, and it is possible that many hundreds of thousands who have not yet applied will eventually do so. There is already a serious holdup in the war service homes programme.

Sitting suspended from 6 to. 8 p.m.

Mr FRANCIS:

– I regard the war service homes legislation as being, in the main, a gesture of appreciation by the nation of the splendid servicesrendered by the members of the fighting services. The proposal to bring within its ambit members of theAustralian mercantile marine who served in ships plying along our coasts is not in keeping with the spirit that prompted the introduction of the original act, namely, to extend its benefits to those who had gone overseas into the theatres of war. The members of the Australian mercantile marine not only get very substantial rates of pay, but also good quarters and food, and, in addition, a war-risk bonus. The current order of the Maritime Industries Commission provides that the war-risk bonus shall be at the rate of 25 per cent. in respect of interstate and intra-state ships trading south of Townsville and Port Hedland, 15 per cent. for ships trading in Spencer’s Gulf, and331/3 per cent. for interstate and intra-state ships trading north of the ports mentioned. For overseas ships going north of Townsville and Port Hedland, a bonus of 50 per cent. is paid from the last Australian port of call on the outward voyage to the first port of call on the homeward voyage. A soldier on active service received a payment of 6s 6d. a day plus 2s. a day deferred pay. He had to withstand the privations of desert warfare in the Middle East, of snow-clad mountains in Greece and Syria, and of jungle and infected swamps in the Southwest Pacific Area. All of this for a total of 6s. 6d. a day! Yet the soldier is asked to share the limited number of homes that can be built by the commission with members of the mercantile marine working in Australian waters who, throughout the war, have enjoyed a relatively comfortable existence. The extension of the benefits of this legislation in the manner proposed will have a disastrous effect upon ex-servicemen who have been waiting years for a war service home. If the Government wishes to build homes for members of the mercantile marine it should bring down a special bill for that purpose which could be discussed on its merits. In time of battle a soldier lives largely on biscuits and bully beef; his- more fortunate compatriot in the mercantile marine is amply catered for all the time by the generous scale of rations laid down by bis awards. Let me refresh the Minister’s mind by a recital of the terms of the agreement entered into between the Commonwealth and the Seamen’s Union in respect of the voyage of the dredge Matthew Flinders from Melbourne to Fremantle. ‘ The terms of the agreement were as follows : -

In respect of the voyage from Melbourne to Fremantle, each employee shall be paid a minimum of three months’ wages inclusive of war risk, bonuses and all other conditions provided in awards and agreements.
Upon the termination of the voyage, i.e., midnight on day of arrival at Fremantle, each employee shall “have the right of repatriation to Melbourne at the expense of the Commonwealth by the first available train.
Victualling allowance provided in award shall be paid while awaiting commencement of return voyage.
Wages are to be paid from the time of termination of voyage to Fremantle up to and including the day of arrival in Melbourne.’

The following table shows the award rates that should have been paid and the amounts that were actually paid by the Commonwealth Government under the agreement : -

No Minister can. honestly defend a proposal such as we now have before us. I am not unmindful of the services rendered by members of the mercantile marine. I pay a tribute to their work; but I do not agree that they should be placed on °an equal footing with members of the fighting forces and be enabled to compete with ex-servicemen for the few homes that the War Service Homes Commission can build each year. If thisclause is passed in its present form it’ will cause grave disappointment to manythousands of ex-servicemen, mostly young men with families’, who have been waiting for years for a home. Instead of adopting a policy which will result in still further delaying the provision of homes-‘ for ex-servicemen, the Government shouldbe taking every possible step to expeditetheir construction. I paid tribute earlier to the Commisioner and his staff, many of whom I know personally. They aremost estimable men, who are anxious torender the best service they can to theirexservicemen comrades. If, in addition to dealing with their present difficult problems, they are to be obliged to make provision for another group of men out of the limited building and man-power resources that are available, an entirely new organization should be established! and should operate under separate legislation. I ask the Minister to withdraw this provision.

Mr ROSEVEAR:
Dalley

.- Seldom do I disturb the pleasant atmosphere of the committee by intervening; in a debate; but as one who represents a waterside electorate which embraces manymen who went down to the sea in ships,. I consider that I ought to say ‘somethingon this clause. I am not seeking for thosemen great, gifts, rewards or honours, because such are not bestowed by this legislation, but I do seek on their behalf recognition of the services that they rendered’ during the war period.- They were, in effect, the life-line between the battle linesand as indispensable to the war effort as the men in the trenches. There should besome tangible recognition of what they did. I have said that I am not seekingfor them gifts, rewards or honours. In plain fact, a war service home’ is neithera gift nor an honour, and the right to possess one is merely a recognition of.” service. My reason for saying that, is that the purchaser of a war service home is in no ‘better position than the private individual who contracts to build a home for himself. For instance, he does not :get any concession in regard to price. It costs as much, perhaps more, to build a war service home as to build by private contract. The purchaser of a war service home gets very little concession in regard to the interest charge, .because to-day the ex-serviceman is charged an interest rate of 3-J per cent, which is exactly the same a.s the private bank rate on building operations. The penalty for failure to maintain payments does not advantage the purchaser of a war service home in comparison with the man who buys a home privately. It has been proved in thousands of instances since the last war that the purchaser of a war service home who fails to keep up his payments faces eviction and the loss of his equity in the property, as does any private individual who contracts to purchase a home. Added to that, the man who takes on a contract to purchase a war service home accepts a life obligation, under which he gambles against the fate of industry, assuming that until he is able to complete his payments, possibly in 30 years’ time, he will remain in employment and will not default. So those who are given the privilege of purchasing a war service home have bestowed on (hem not a gift or an honour, but merely a recognition of the service they have rendered to their country. It is true that, as the result of amendments subsequently embodied in the act, a concession is given to the widow of the purchaser of a war service home. If a man dies before discharging completely the obligations imposed on him under his contract, his widow may take over the contract to complete the payments, and if unable to do that may occupy the home at a nominal rent during her lifetime. That is no greater concession than many building societies give to those Who build homes under their control. Under a system of insurance, the purchaser of a. home under many private contracts is protected -in that connexion. If he dies, the home immediately becomes the property of his widow. Therefore, if this concession wore given to the men who went down to the sea in. ships, it would be neither a gift nor an honour, but merely a recognition of their -services.

What is the history of the war service homes legislation?, It was enacted early in 191S; not in the heat, fervour find enthusiasm of war, but when this Parliament had an opportunity to survey the whole field- both recognition of members of the armed forces and the possibility of housing them. Despite all contradiction, there was no war service homes legislation in force during the war of 19.14-18. I have said that a war service home is neither a gift nor an honour. I go further and say that those who purchased such homes in 1919 placed a millstone round their necks. One of the greatest scandals, in building construction in this country was the building of war service homes by jerry-builders. Reviewing the history of this legislation, we can be assured that those originally responsible for it legislated in a calm atmosphere. In that atmosphere, they decided to include men of the merchant marine who had served overseas. Let us consider the present position. The concession was given to men with overseas service because World War I. was fought overseas. But in the spread of the recent war, there was not an area on the globe which was safe for the men of the merchant marine. I cannot recollect- any ship having been sunk or damaged in Australian waters in World War I. In the recent war, however, more than 30 ships were sunk or damaged on the New South Wales coast alone, and the total number on the whole of the Australian coastline was 33 sunk and thirteen damaged. Therefore, honorable members will see that the whole spread of the most recent war was different from that of 1914-18. What is there to show that those responsible for the original Avar service homes legislation, had they been faced with the problems with which we were confronted in the recent Avar, would not have omitted from that legislation the qualification that men of the merchant marine must have served overseas? Comparisons in such matters are odious. I remind honorable members that service in any armed force is an absolute lottery. Because of the disposition of the units to which they were attached, many men who served throughout the recent war did not hear a shot fired, yet they are as much entitled to a war service home as is the man who went through the thick of it and was severely injured. As the honorablemember for Barker (Mr. Archie Cameron) has said - viewing the matter in the worst light, what is the difference between giving a war service home to a member of the merchant marine and giving one to the “ Base Wallah “ who did not go beyond Victoria Barracks? That is the position we are up against. Even though comparisons are odious, I remind the committee that there was no more nerve-racking job in the whole war than that performed by the men of the merchant marine. Very often they were ill-protected, and did not sail in convoy, yet they faced the same risks from bombs and torpedoes and mines as did the bestequipped ship in the British Navy. Even if their ships did not meet with disaster - and a great many ships did - the fact that for over five years they were subject to such nerve racking experiences should entitle them to special consideration. They performed their duties with heroism. There is no brighter page in the history of Australia’s war effort than that which records the deeds of the men of the merchant navy, whether they sailed in convoy or not.In 90 per cent. of the cases they were over-matched in that they lacked a sufficiency of defence weapons, and had no protection against mines. Therefore, the matter of pay or bonuses should not enter into it. Does the honorable member for Moreton (Mr. Francis) believe that high pay or a bonus could compensate a man for the loss of hislif e ? Does he believe that a wife would be prepared to sacrifice her husband for the sake of benefiting by high pay or a. bonus? If pay is to be a consideration, we should compare the rates of pay received by various ranks in the Army. Would the honorable member deny a general the right to a war service home because he received more pay than a private? Not only does the honorable member throw into the scale against the merchant seaman his pay and bonus, but he also throws in the menu. While he charitably remarks that he is not opposed to seamen getting good food, he neverthe less mentions the good food as a reason why seamen should not be entitled to war service homes. The fact remains that the merchant seamen were engaged on the Australian coast in an extremely risky service. Would the honorable member for Moreton have taken on the job at their pay?

Mr Francis:

– I never had an opportunity.

Mr ROSEVEAR:

– No, and the honorable member would nothave taken it if he had. I am not asking for gifts or honors for these men who, in wartime, went down to the sea in ships. It is not in our power to provide them with such things, but it is in our power to do whatthe Parliament did in 1918 : that is, to give to merchant seamen who served in war theatres the right to war service homes. During this war our merchant seamen serving on the Australian coast were exposed to all the hazards of war, and the Parliament should suitably recognize their service.

Mr ARCHIE CAMERON:
Barker · ALP

– Whenever I hear the honorable member for D alley (Mr. Rosevear) take part in a debate, I realize that this Parliament is the poorer because of his elevation to the exalted position of Speaker. He’ is one of the incisive debaters in the House, and for that reason I welcome his participation in the debate. This evening, he said that 33 ships had been sunk off the Australian coast during the war. I am not an authority on the subject, but I heard a Minister of the Crown say that the number was 29, and the honorable member for Boothby (Mr. Sheehy) mentioned the same figure this afternoon.

Mr Rosevear:

– The Darwin sinkings were not included in that number.

Mr ARCHIE CAMERON:

– Then I think it will be necessary to revise the figures, because there are many masts and funnels poking up out of the water at Darwin.

The CHAIRMAN (Mr. Riordan).The honorable member must discuss the clause.

Mr ARCHIE CAMERON:

– I was about to remark that the honorable member for Dalley made a very good secondreading speech on the clause. It is interesting to note that heshould be four ships out, in his account of the sinkings. Such a matter should be the subject of accurate knowledge. The honorable member drew a gloomy picture of the economic future of persons who take war service homes. He did not use the word “ liability “ although I tried to put the word into his speech, for him.. However, everything he said indicated that the ex-serviceman who takes up a. war service home accepts a liability for 30 years, and he referred to the inconvenience of such a liability in the event of the occupant being evicted or losing his equity in the home. While the Labour party was in opposition I was lead to believe from the speeches of Labour supporters that when Labour got into power every one would be immensely well off, and that, indeed, no one would have to work at all. There would be no such things as loss of income or poverty oi’ evictions. There would be a state of universal well-being guaranteed by the Government. Now, the honorable member for Dalley, in a speech lasting only ten minutes. has completely wrecked my faith in the Australian Labour party. He should take the opportunity to assure me that he was speaking without the Australian Labour party policy before him ; that on this occasion he was looking at life and at the facts of the situation as they arn, and not as they are represented in the Australian Labour party policy.

Mr BRYSON:
Bourke

.- I agree with the comments of the honorable member for Dalley (Mr. Rosevear) who, in contra-distinction to the honorable member for Moreton (Mr. Francis) explained clearly the position in regard to merchant seamen. The honorable member for Moreton ran true to form, and mouthed the usual platitudes about what ought to be clone for e’x-servicemen. He has been doing the same thing for the last 25 years. For part of that time he was a Minister of the Crown, and for twenty years out of the 25 he was a supporter of the government in office. He has had many golden opportunities to do for’ cx-servicemen what he now says that this Government ought to do, but the fact that it is necessary for him to keep on making the same requests indicate that he is not anxious to do anything in particular for ex-servicemen, but wishes only to use them for his own political ends. By now, I think the ex-servicemen have reached a proper understanding of the honorable member and his friends, who are now demanding that the Labour Government should do the things which they declined to do when they had the opportunity, and which they are secretly hoping that the Labour Government will not do, either. I am tired of that sort of thing. I do not like, hypocrisy. I believe that politicians and statesmen should speak their minds.; that they should not speak in one way and act in another.

As for the clause under discussion, I believe that the proposal of the Government is a sound one. Seamen who took ships to sea during the war ran grave risks, graver risks than some members of the services, and I believe that they should have the same right to war service homes. Indeed, I believe that the Government should have gone a - good deal further. It is provided that any person who volunteered, and was accepted for overseas service, and those who actually served overseas, shall be entitled to a war service home. Yet it is a fact that many men who volunteered and were accepted never left their own. States, or even the capital cities. Nevertheless, they are. entitled to war service homes. There were in the armed services many mcn who were called up, and did not have a choice as to their place pf service. They were drafted into the service, put into uniform and sent to Western Australia, Queensland or the Northern Territory, where they served for over four years. They should receive the same consideration as other ex-servicemen. If this cannot be provided in the bill now, the Government should amend the legislation as soon as possible so as to provide for it.

While houses are so urgently needed, and while the powers of the Commonwealth Government are restricted in regard to the provision of homes, the Government should use the War Service Homes Act as a method to provide homes for as many persons as possible. In this way, it should be possible to provide homes for a great many more people than in any other way. The Government should seize the opportunity to build twice as many homes for the people as is possible under the act as it now stands.

Mr ABBOTT:
New England

– Many merchant seamen who sailed the seas during this war faced dangers and suffered hardships as great as did any of those who sailed with the Royal Navy or the Royal Australian Navy. I do not think that any experience could be more horrible than that of’ a stoker working in the bowels of a ship running the blockade to Malta during the height of the blitz against that island; and what could be worse than the experience of seamen on ships carrying supplies on the northern route to Russia? I remember once travelling to Tasmania on the Zealandia, which now lies wrecked in Darwin harbour. I went down into the engine room, and along the propeller shaft as far as the thrust blocks. I went down to the stokehold, and in the engine room inspected the triple expansion engines. There, I talked to the second engineer, and it struck me what a harrowing experience it would be vo be working down there in a ship that was going through seas where there existed danger from mines or torpedoes. Actually, the engineer had been in a ship that was torpedoed during the last war. I can speak as a neutral on this matter, because no submarines ever went up the New England rivers, nor were any mines laid in them, but my honest opinion is that merchant seamen ought to be. entitled to the benefits of this measure.

Mr JAMES:
Hunter

.- The remarks of the honorable member for Dalley (Mr. Rosevear) should have the endorsement of every honorable member. As the honorable member for New England (Mr. Abbott) has indicated his intention to support the bill there cannot be much wrong with it, because generally the honorable member, for political purposes, does his best to find flaws in proposals submitted by the Government. During the war enemy submarines frequently lay off the coast of New South Wales, particularly in the vicinity of Newcastle. It may not be generally known that many vessels were sunk off the Australian coast. I have had some sad experiences following disasters caused to merchant shipping by enemy action. On one occasion I represented the Government at a funeral of nine merchant seamen belonging to the Arawa, which was torpedoed by the enemy. Luckily,, the bulkhead held, although the propellor was missing and the aft part of the ship was. badly damaged. Oxy-welders had tobe engaged to extricate the body of at. least one seaman which was encased in steel. The devastation was indescribable. I said then that if any men were deserving of honour for the part they played in the war, no one was more entitled to it than were the merchant seamen who risked their lives in enemyinfested waters. When the present Government first came into office it had to rely a good deal on the support of two independent members. In 1942 a bill to amend the Australian Soldiers Repatriation Act was returned from the Senate with an amendment providing for preference to ex-servicemen. The then Prime Minister, Mr. Curtin, agreed to accept the Senate’s amendment, provided that merchant seamen were included. Later, the Senate, to its eternal disgrace, refused to accept his suggestion, and as the Government could not rely ‘on the support of the two independent members in this House, it was not able to give effect to its intention. At that time the Opposition in this chamber was larger than it is now. Honorable members will recall that its ranks were thinned at the last election. That” process will be carried further when the next appeal is made to the electors.

The CHAIRMAN (Mr Riordan:
KENNEDY, QUEENSLAND

I ask the honorable member to discuss the clause before the committee.

Mr JAMES:

– Although the seaplane base at Rathmines Bay afforded some protection to shipping, enemy torpedo boats frequently lay off the coast near to Newcastle. That was natural, because from time to time ships carrying iron and steel to the rest of Australia sailed from New- castle. There were many sinkings of vessels in that vicinity. I know something of the seamen from that locality,, and I sincerely support this clause which will give to them the right to a war service home.

Mr SHEEHY:
Boothby

.- The honorable member for Barker (Mr. Archie Cameron) said that there was some discrepancy between figures cited by honorable members in giving the number of ships sunk off the Australian coast. I rise to make it clear that the figures cited byme related only to sinkings off the coast of New South Wales, and did not include naval vessels. In this clause the Government is endeavouring to give effect to its general poiicy of meting out justice to every one. Some twelve months ago I attended a dinner of ex-naval men at which Commander Symonds, of South Australia, paid a great tribute to the members of the merchant navy. He referred particularly to those who had sailed in vessels which traded along the Australian coast, and stated that it was not an uncommon thing for them to suffer from extreme cold and that other risks awaited them beyond the 3-mile limit. I regard Com- mander Symonds as sufficient authority for saying that these men endured many hardships.

Clause agreed to.

Clauses 4 to 6 agreed to.

Clause 7 (Maximum advance).

Mr ARCHIE CAMERON:
Barker · ALP

– Earlier to-day I inquired of the Minister whether the increase of the maximum advance to £1,250 would apply to all war service homes constructed for ex-servicemen returning from service in the war which has just ended, and the Minister said that he hoped to be able to let me have a reply later. I now invite him to make a statement on the subject.

Mr LAZZARINI:
Minister for Works and Housing · Werriwa · ALP

– I indicated earlier to the honorable member for Barker (Mr. Archie Cameron) that I thought that the increased maximum would apply to all war service homes erected for men who served in the recent war if they desired it. I have since spoken to the War Service Homes Commissioner, and he assures me that he will have power to make available additional loans up to the extra £300 to servicemen who apply for them.

Clause agreed to.

Clauses 8 and 9 agreed to.

Title agreed to.

Bill reported without amendment; report adopted.

Bill - by leave - read a third time.

page 765

NATIONALITY BILL 1945

Second Reading

Debate resumed from the 14th March (vide page 316), on motion by Mr. Calwell -

That the bill be now read a second time.

– in reply - I thank the House for the reception it has given to this measure. At least the bill proves that the age of chivalry has not yet passed, ft proves too, that honorable members in the Parliament are prepared to concede to the women of Australia some of that equality of rights about which we talk quite a lot, but at times do very little. As the honorable member for Darwin (Dame Enid Lyons) has said, this subject has been discussed at a number of Imperial Conferences. It was not possible at any of those conferences to secure complete unanimity of opinion, and the best that could be done with the proposal that women should not surrender their British nationality upon marriage to an alien inside the British Commonwealth of Nations was the compromise to which the honorable member for Indi (Mr. McEwen) has referred, giving to each Dominion that elected to do so, the right to pass legislation conferring the rights and privileges and also imposing the obligations of British citizenship upon women who, after having married aliens, made application to the appropriate authority in the dominions for the retention of those rights. It was of course provided, necessarily, that the exercise of any such rights and the acceptance of any such obligations could only exist while the person concerned remained a citizen of the dominions that passed the legislation. The Dominion. of South Africa has not yet passed the legislation which the honorable member for Indi said this Parliament passed whilst he was Minister for the Interior. Speaking from memory, only New Zealand and Australia have passed the legislation. We have dealt with the problem in two ways. First there is the international aspect which is covered by the Hague Convention, and then there is the practice obtaining within the British Commonwealth of Nations which, is determined from time to time by agreement at Imperial conferences. South Africa holds the view which has obtained from about 1870 onwards in the British statutes followingthe abandonment of common law practices, that a woman loses her nationality on marriage. This Government believes that it is important that we should go much further than has so far been attempted within the British Commonwealth, and I confess that what is proposed in this measure has not been a’ matter of agreement at any Imperial Conference. We propose to pass this legislation and to bring it into operation by proclamation. We shall then say to the British Dominions that we think that they should pass the same or similar legislation, and should not offer any objection to this particular piece of legislation. However, the subject-matter of this bill and other questions of nationality are likely to come before an Imperial Conference at an early date. In October last year, the Canadian Parliament, introduced legislation which goes even farther than that- which we .are now discussing. It proposes to establish Canadian citizenship which will be the paramount consideration for persons residing in Canada. No person can be a Canadian citizen unless he or she is a British national, but under the Canadian legislation the emphasis will be placed on citizenship within the Dominion of Canada. That far-reaching measure has evoked a request from the Dominions Office in Great Britain that the whole subject be referred to an Imperial Conference at an early date. According to a cablegram that arrived from the British Dominions Office on the 26th March, that conference will be held at Paris in June, at the conclusion of the Peace Conference. I believe that at that conference a much more liberal view - I do not mean in the party sense but in the true and proper sense of the word - will be taken of this question of nationality than has heretofore prevailed. It is true, as the honorable member for New England (Mr. Abbott) has said, that many problems are associated with this question. If we leave the question alone we shall leave many problems unsettled ; if we pass this legislation we shall . create a few more problems; but I believe that the general opinion will be that if we pass this measure we shall be dealing with women much more fairly than in the past.

Mr McEwen:

– And we hope to deal with them better still.

Mr CALWELL:

– Precisely, and I trust that after the Imperial Conference takes place we shall have further amending legislation introduced into this Parliament which will give not only to women who reside in Australia, but also to Australian women who go abroad, the right to retain British citizenship upon marriage to aliens. Their right to British nationality because of their birth within the British Commonwealth of Nations should be inalienable. That is the basis of this Government’s views. Australian wives of Americans who go to the United States do so as British citizens, and remain British citizen? unless, by their own overt act, they decide to become American citizens. The United States of America has faced up to the problem mentioned by the Leader of the Opposition of’ the nationality of children born of an American father and a non-American mother in a realistic fashion. A child born of- American parents, outside, the United States of America can only be an American citizen if, at the age of 21, he or she opts to become an American, and a child of an American father and a non-American mother has the same right to opt to he an American citizen, as has the child of two American parents. A child of an American father and a non-American mother born in the United States of America is a citizen of the United States of America. Other countries, too, have adopted a policy similar to that of the United States of America. Inside the British Commonwealth of Nations, Eire has passed legislation to give effect to that policy. In Soviet Russia, and in a number of South American countries, the same rule obtains. Eventually, I suppose, at a convention at the Hague or elsewhere., the principle will win universal acceptance, as I believe it should. In the concluding passages of his speech, the Leader of the Opposition suggested that the Government should give consideration to his proposal that an expert committee be appointed to discuss with the Government the problems dealt with by this legislation. I accept the suggestion, and as I have no doubt there are people interested in this legislation the officers of my department will meet their representatives and ascertain their views on it. I am sure their views will be freely given and that they will also be of great value. When the report comes back from the Imperial Conference we might find that this legislation can be extended as honorable members would desire it to be extended, and that other dominions will be found to be willing to recognize, in their territories, the British citizenship which we confer on Australian women by this bill.

There is little more that I can add except to draw attention to the fact that divided sovereignty in Australia of itself creates difficulties. Some State laws permit an unnaturalized subject to hold land while others forbid it. Before 1937, when legislation was passed following upon the Imperial Conference of 1935 which gave the limited right we now propose to extend to women, it was possible for an Australian-born woman, because she was the wife of an alien, to have no right to hold property in Queensland but to be able to hold property in her own right in Victoria. The actof 1937 did, to some degree, correct that absurd and grotesque anomaly. I have no doubt that this bill will have a speedy passage through this House and through the Senate. After its passage through both Houses of the Parliament the. Government will take action on the proposal of the Leader of the Opposition for the convening of a conference of those interested so that we may obtain the benefit of their views.

Question resolved in the affirmative.

Bill read a second time and reported from committee without amendment or debate; report adopted.

Bill - by leave - read a third time.

page 772

ORDERS OF THE DAY

Discharge of Motions

Mr.CHIFLEY (Macquarie- Prime

Minister and Treasurer) [9.32]. - by leave - I move -

That the following orders of the day he discharged : -

No. 12. - United Nations Organization - First Session of General Assembly - Report of Australian Delegation - Resumption of debate on motion to print pa per.

No. 14. - Japanese Atrocities - Report of Australian. War Crimes Commission - Resumption ofdebate on motion to print paper.

No. 16. - Full Employment in Australia - Government Policy - Resumption of debate on motion to print paper.

No. 17. - Cases of Private Wilson, Private Derrick and Sapper Chalmers - Report - Resumption of debate on motion to printpaper.

No. 18. - Aircraft Crash, Spring Plains, Victoria - Findings of Air Court of Inquiry - Resumption of debate on motion to print paper.

No.19.- Additional Financial Assistance to South Australia for Year 1944-45 - Report of Commonwealth Grants Commission - Resumption of debate on motion to print paper.

No. 20. -Post-war WoolRealizations - Report of Conference - Resumption of debate on motion to print paper.

No. 21. - Food Consumption Levels in Australia and the United Kingdom - Report of Committee - Resumption of debate on motion to print paper.

No. 22.- Case of Mrs. M. E. PedvinReports of Committee - Resumption of debate on motion to print paper.

No. 23. - Air Attack on Darwin- Report of Commissioner - Resumption of debate on motion to print paper.

No. 24. - The War - Surrender of Japan - Ministerial Statement - Resumption of debate on motion to printpaper.

No. 29. - Conditions on Japanese Destroyer Yoizuki - Report of Investigating Mission - Resumption of debate on motion to print paper.

I have conferred with the Leader of the Opposition (Mr. Menzies) and the Deputy Leader of the Australian Country party (Mr. McEwen) in regard to this motion which I move with their concurrence and consent.

Question resolved in the affirmative.

page 773

ADJOURNMENT

Sitting Days - Wheat Industry: Manufacture of Dog Biscuits - Petrol - Buck’s Bay Reef - Tobacco

Mr. CHIFLEY (Macquarie - Prime Minister and Treasurer [9.34]. - I move -

That the House do now adjourn,

In view of the excellent progress made in the consideration of legislation placed before this chamber during the past weck, it is not proposed, after we adjourn to-morrow, to call the House together again until Wednesday of next week, when the Constitution bills will be discussed. It is proposed to ask the House to meet on Thursday morning of next week, instead of, as usual, in the afternoon.

Mr ABBOTT:
New England

– I desire to bring before the House a matter which gravely reflects upon the administration of the Department of Commerce and Agriculture. From the evidence which I shall bring before honorable members it appears that the Minister has given preference to the manufacturers of dog biscuits, primarily used to feed racing greyhounds, over the needs of the people of Great Britain and Europe and the starving millions in India. As I shall show, this preference has been given, not only to the detriment of our export obligations, but also at the expense of the Australian poultry farmer and bacon producer and at a price which sacrifices the interests of the wheat farmer. The unfortunate position of the people of Great Britain, and of India where famine stalks the land, is only too well known to honorable members.I remind them, however, particularly those representing dairying and poultry farming districts, of the acute shortage of mill offals for feeding poultry for the acute is this shortage that many poultry production of eggs and pig products. So men have had to go out of production and pig fatteners have ceased operations. In the New England electorate, particularly in the Tamworth area, which pro- duces one-twelfth of the total egg production of New South Wales, poultry farmers have had to slaughter their flocks because of the shortage of mill offals for feed. Yet, at this very time, the Minister chooses to cut down their already restricted feed supplies, thus further reducing production. In support of these very grave charges, I produce a circular dated the 11th February, 1946, which was addressed by the New South Wales State Superintendent of the Australian Wheat Board to millers, wheat distributors and others concerned. The circular reads as follows : -

page 773

AUSTRALIAN WHEAT BOARD

Bank of N.S.W. Chambers, 16-18 O’Connell Street,

Sydney. 11th February, 1946

Circular to Millers, M.4/46 Wheat Distributors and Others Concerned

Dear Sir/s:

Wheat and Wheat Products for Feeding Livestock

For some months past, acting on the advice of the Wheat Allocation Committee, representative of Federal and State Department of Agriculture, instructions have been clearly given to all concerned that Wheat and Wheat products (other than bran and pollard manufactured from the gristing of Wheat into Flour) may only be supplied to the priority of livestock, pigs and laying hens and pullet chicks.

The fact that these’ instructions must be taken literally and that Flour or Wheat and Wheatmeals must not be supplied for feeding any stock other than that specified and underlined above, has been ‘emphasized on all occasions, but nevertheless reports have reached the Board that some Millers and others have been supplying Wheat products for other stock including the manufacture of dog biscuits.

This advice is therefore given to all concerned that a serious view will be taken of any future departure from the instructions in this regard and that offenders will be liable to have supplies of Wheat discontinued.

Yours faithfully, (Sgd.) G. A. H. Holborow.

State Superintendent

I direct particular attention to the first paragraph of the. circular, which reads -

For some months past, acting on the advice of the Wheat Allocation Committee, representative of Federal and State Departments of Agriculture, instructions have been clearly given to all concerned . . .

The State Superintendent, acting on the advice of his technical officers, issued a very stern warning to everybody who had been using wheat for the purpose of making dog biscuits, that if they continued this practice it was likely that their supplies of wheat would be cut off. In a time of acute shortage like the present, it was a practice which the State Superintendent refused to countenance. Doubtless he had the support of the Australian Wheat Board. Those orders should be enforced, and not be subject to external interference. I want the House to note particularly the date of the circular - the 11th February, 1946. The order was enforced, and no wheat was supplied to dog. biscuit manufacturers for the purpose of making dog biscuits, up to the 4th March, 1946. In the interval, something must have happened. Very strong representations must have been made to the Minister for Commerce and Agriculture (Mr. Scully) to induce him to act as he did. Had the Minister been in the chamber, I would have put it to him that during that period he must have met representatives of the dog biscuit manufacturers,and that the outcome of the meeting was a circular issued by the same State Superintendent, Colonel G. A. H. Holborow, to millers, which read -

AUSTRALIAN WHEAT BOARD.

16-1 8 O’Connell-street,

Sydney, 4th March, 1946.

Circular to Millers No. H.8/46. Dog Biscuits.

Dear Sirs,

With reference to Circular H.4/46 we have now to advise that the Minister for Commerce and Agriculture has made available 50,000 bushels of wheat for the manufacture of dog biscuits from 1st March to the end of the present ration period.

The price of the wheat will be 4s.11d. per bushel Sydney bulk basis and is not to be confused with the allocations made for feeding priority livestock.

The wheat will be allotted on a percentage basis of the quantity used by millers for dog biscuit-meal between 1st March and 30th November, 1944. If you. are interested in this trade, please fill in replies to questions hereunder and return by first mail. As the allocations must be made as quickly as possible replies must reach this office by Friday 8th inst. otherwise they must be excluded.

Yours faithfully, (Sgd.) G. A. H. Holborow,

State Superintendent.

Honorable members should contrast that circular with the first circular, which stated that wheat supplies would be cut off from millers if they used wheat for the purpose of making dog biscuits - which, I understand, are largely used for the feeding of racing greyhounds. In his circular of the 11th February, the State Superintendent said -

Acting on the advice of the Wheat Allocation Committee, representative of Federal and State Departments of Agriculture, instructions have been clearly given . . .

Only three weeks later, he had to issue another circular, in which he said -

We have now to advise that the Minister for Commerce and Agriculture has made available 50,000 bushels of wheat for the manufacture of dog biscuits from 1st March to the end of the present ration period.

No mention was made in that circular of the Wheat Allocation Committee which is representative of the State and Commonwealth Departments of Agriculture. Apparently, the Minister had completely overriden his technical advisers in having made this quantity of wheat available for the purpose of making biscuits for racing greyhounds. Unless he had unimpeachable justification for doing so, the Minister should not have overriden the Australian Wheat Board, which had the support of its technical advisers. Had he been here, I would have asked him what justification he had for overriding his tenhnical advisers. I point out to honorable members that 50,000 bushels is not a mere bagatelle, but is equivalent to 1,000 tons of flour and 300 tons of pollard and bran. This latter, if fed to poultry, would result’ in the production of many thousand dozen eggs, which could be used to feed starving people overseas ; and the 1,000 tons of flour, if placed on the Indian market, would have a very good effect. I also direct attention to the price at which this generous Minister graciously offered the farmers’ wheat to the owners of racing greyhounds. The circular stated -

The price of the wheat will be 4s.11d. per bushel, Sydney bulk basis.

On the 27th March, I asked this question, upon notice -

What price or prices are at present being charged by the Australian Wheat Board f.o.b. for wheat for export, or for the manufacture of flour for export, bagged basis?

The reply of this generous Minister was that the export price was 10s. 4£d. a bushel, trucks port basis. This means that the wheat-farmer, through the generosity of the Minister, has made a compulsory gift to the dog biscuit manufacturers of approximately £12,500. What representations were -made to the Minister which caused him to divert this quantity of wheat? By whom, were they made? What claims did the dog biscuit manufacturers advance which could be considered superior to those that I have mentioned, namely, those of the hungry people of Great Britain and the starving millions of India ? These ‘charges are- so grave that they demand the fullest reply from the Minister. It is essential that he shall reply on the facts as I have stated them. No other course is open to me than to charge him with having placed racing greyhounds before the starving humans of Great Britain and Europe. If this is the sort of administration for which the Department of Commerce and Agriculture is responsible, the Prime Minister (Mr. Chifley) should investigate the matter.

Mr ARCHIE CAMERON:
Barker · ALP

– I am somewhat intrigued by information that I have received fromSouth Australia in regard to the petrol position in that State. It appears that some action has been taken by the Garage’ Owners Association to approach the Minister for Supply and Shipping (Senator Ashley), who is not in this chamber or this city; therefore, I would appreciate it very much if, before the adjournment to-morrow afternoon, the Minister representing that honorable gentleman in this chamber can assure me as to whether there are any grounds for the belief that is held at Mount Gambier and other places that there is likely to be a shortage of petrol, or, alternatively, whether the Liquid Fuel Control Board in South Australia is likely to embark shortly on a new petrol policy, the possibility of which is causing a certain degree of confusion, and, at the very least) concern, in country districts. The matter could be cleared up by the Government in 24 hours.

Mr Chifley:

– May the Minister concerned have the information now?

Mr ARCHIE CAMERON:

– Tes. I have no details in writing, but I can convey the information to him verbally.

For some time a request has been made by means of correspondence and interviews for certain action to be taken at Buck’s Bay, in my electorate, in the interests of fishermen. This bay has a beautiful natural breakwater, and the local fishermen are engaged in the sharkfishing industry, which has developed to a considerable degree on the South Australian coast. They need improved harbour facilities for their craft, and these could be provided by blasting a hole in the reef at Buck’s Bay. The Minister concerned knows that this matter is of interest to a large number of ex-service- ‘ men, but his last communication to me was that they had better get in touch with the Navy or Army authorities, with a view to obtaining explosives with which to do the job themselves. Although men may have served in the defence forces, they are not necessarily qualified to use a large quantity of explosives in order to blast a hole in a reef. The Government should take up the matter as a post-war work. It could not safely be left to local residents. The government departments concerned could complete the job at an early date. I have letters from Melbourne firms which are prepared to purchase certain products of the sharkfishing industry. The matter should toe regarded more as one of Government policy than a question whether one department or another has explosives to spare.

Mr McEWEN:
Indi

.- The honorable member for New England (Mr. Abbott) has raised a matter which is not to be mistaken as a mere criticism of one of the many acts of government administration which will call for comment, but as one of first-class consequence. I feel sure that it will not be regarded by the Prime Minister (Mr. Chifley) nor the Minister for Commerce and Agriculture (Mr. Scully), as one which can be disregarded, but will be recognized as one of serious import, upon which some explanation is called for, if, indeed, a satisfactory one can be devised. We all know that Australia has not sufficient wheat at present to meet the demands for human .requirements. The strongest representations have ‘been made to it from the headquarters of Unrra, and from various governments overseas, that we should exercise, to the most extreme degree, care in allocating wheat for stock feed, and go to the limit in making every ‘bushel we can possibly spare available for export abroad for human consumption.

For many months past we have read in the daily press that in the next year or two the most critical food shortage in modern times will be experienced. One reads daily in the newspapers authoritative statements to the effect that millions of people are condemned to die of starvation within a measurable period of time. In that atmosphere, and in those circumstances, these appeals have been made to the Government to restrict, ‘as far as possible, the use of wheat for stock feed and other purposes, and to make it available for human consumption. The Minister for -Commerce and Agriculture himself in the last couple of weeks has so explained the position to the House, and has capped his remarks by saying what we recognize with some pride, that, upon a close examination of the position, and as a result of these desperate appeals from overseas, another 5,000,000 bushels of wheat have been subtracted from the quantity previously set aside for stock feed in Australia, and will be exported for human use. I have not the slightest doubt that that was the cause of the warning circular sent out by the State Superintendent of the Australian Wheat Board in Sydney, pointing out- to millers that they were not permitted to supply wheat intended ‘ to be used for dog’ biscuits. The warning was .given that if it were discovered that wheat was allocated by them for this purpose their whole . supplies might be cut off. But three weeks later another circular was addressed to the same millers by the Australian Wheat Board. The honorable member for New England read its exact terms. It stated clearly, on the authority of the Minister for Commerce and Agriculture, that millers were now advised that 50,000 bushels of wheat were to be set aside for the manufacture of dog biscuits. That meant that 50,000 bushels of wheat which had been hypothecated for human consumption was, on the direction of the Minister, to be .withdrawn and used for the manufacture of dog biscuits. Surely this is not something that can be lightly brushed aside. An explanation is demanded. The matter raises some interesting points. The honorable member for New England put his finger on one when he said that wheat which had been allotted for export at 10s. 43/4d a bushel would now, by direction of the Minister for Commerce and Agriculture, be fed to dogs in the form of biscuits and the growers would be paid only 4s. lid. a bushel for it. This, on the quantity involved, would represent a loss of £12,500.

For many years, the wheat-growers, who have had as bad a time as any other section, have been agitating for control of the” product of their labour. Governments with which I was associated were charged by the Labour party with setting up boards which were not controlled by the growers, and the Labour party gained many thousands of votes by promising that if it were returned to power it would establish boards on which growers’ representatives would be in a majority. There is, in fact, now an Australian Wheat Board upon which the growers representatives are in a majority, but that board is no .longer permitted to decide how the wheat shall be disposed of. It is the. Minister for Commerce and Agriculture who decides how much shall be exported and how much held in Australia. The board cannot say how much wheat shall be allotted to power alcohol distilleries, or whether the wheat is to be sold at a low price for use in Australia or at a high price for export. The Australian Wheat Board is no more than a ghost institution. It has an office but it has no authority. The Labour party honoured its promise by appointing to the board a majority of growers’- representatives, but it destroyed the value of this concession by taking away from the board all effective authority. The board cannot determine whether wheat shall be sent to the .starving people abroad, or whether it shall be used to feed dogs, probably racing dogs. I am a man who earns his living with the valuable aid of sheep dogs, but I have never seen a working clog fed with dog biscuits. These biscuits are fed to poodles, lap dogs ‘ and racing dogs. This matter must be dos<.:y examined, and an explanation given to the people and to the Parliament.

Mr ADERMANN:
Maranoa

– During the last eighteen months, I have repeatedly stressed the need for Go- eminent assistance to the tobaccogrowing industry in Australia if the industry is to be saved. To-day, the industry needs Government help, or it will go out of existence. For some time past the Government has been conducting an inquiry through the Director-General of Agriculture, Mr. Bulcock, into conditions in the industry, as a result of which the Government paid a 10 per cent, subsidy on. realization in order to assist the growers. Since the Government has had control of marketing and the system of appraisals has been in operation, the percentage increases have- been liberal, and I have no quarrel on that point. In 1941-42, the Government increased payments by 10 per cent., and in the following year by another 10 per cent. It had previously increased payments by 25 per cent., so that, the total increase represented 45 per cent. The point is, however,’ that although prices were increased by 45 per cent., growers did not obtain any financial benefit as a result. That is my quarrel with the system, and in this the Minister for Commerce and Agriculture (Mr. Scully) agrees with me. The following table illustrates how the system has worked out .so far as the growers are concerned :-

As I have said, the Government granted a 10 per cent, subsidy in addition to the 45 per cent, increase, and that is the only addition which has resulted in an actual increase of income to the grower, because that did not come into conflict with the interests of the tobacco combine. “When the first increase of 25 per cent, was given, the grading list was revised and some of the lower grades were eliminated. Thus, the growers had less tobacco to send, and actually received less money, while the combine benefited by getting tobacco of a better quality at the same average price. Each year, as the increase was made by the Government, so the grading became stricter. The combine declares that the quality of Australiangrown tobacco has deteriorated. Tobacco

is grown in Australia in four zones - northern Queensland, southern Queensland and northern New South Wales, Victoria and Western Australia. Would any honorable member suggest that, over a period of years, the grade would automatically decline in each of those four zones, so that the average payment would remain the same? Is it suggested that, after twelve or fifteen years’ experience, the growers have not learned something about tobacco-growing, and that their product would not improve in quality, rather than deteriorate? I was told that the tobacco combine said that it would not buy . Australian tobacco unless it was graded by the. combine’s own appraisers. In theory the grading is done by a representative of the combine, a’ representative of the growers, and a representative of the department, but in practice the combine’s representative gives his verdict, which generally prevails. The stage has been reached when the Government must act. The question to be decided is whether the combine or the Government is to control the industry. If the present conditions are maintained the industry will be driven out of existence. If it be contended that the combine is justified in having its own appraiser I retort that the growers have an equal right to say that they will not sell their product unless they have their own appraiser. That would cause a strike. Commonwealth graders appraise wool and butter, and the producers of those commodities do not object. They realize that that is the only fair system. In the first year of appraisement the quantity of tobacco grown in Australia totalled 0,900,000 lb. In 1944-45 it fell to 2,500,000 lb., and the estimate for this year is about the same. “When I visited the Texas district about 2 years ago I found that tobacco was being grown on nearly every farm along the river road. Recently I visited the same district again, and I saw tobacco growing on only two of those ‘blocks. I saw costly barns .and treating plants lying idle. The Government must decide whether or not Australia intends to retain this industry. When that question was put to the Minister for Commerce and Agriculture, he replied strongly in the affirmative, and I believe every honorable member would echo his reply, because Australia needs all the industries that can be established here. The subsidy paid to the combine amounts to £750,000 annually: the profits made by the combine amount to £960,000. lt pays dividends every quarter. Last year, £753,000 was paid by way of subsidy, and the profits of the combine remained about the same as before and the dividends were continued. The combine is protected against rising and falling prices. I admit that it was necessary to regulate prices in war-time, but the combine has had a fair deal, whereas growers’ costs have increased immeasurably during recent years and yet they have had no offset in price. Many growers have been driven off the land.

The table of limits means nothing to the tobacco combine, because the appraisement systematically declines as the table of limits is revised. By the courtesy of the Minister for Commerce and Agriculture I was able to attend a tobacco conference recently in Sydney. I was unable to remain to the end of the conference because of my parliamentary duties here, but I learned that the conference broke down because the growers stood out for an average price of 3s. per lb. I endorse that demand. The Minister admitted to me that that was a fair request. The solution of this trouble is for the Government to appoint independent appraisers” so that the growers may know that when a table of limits is decided on it will be faithfully .observed. I see no other way cf saving the industry.

Mr CHIFLEY:
Prime Minister and Treasurer · Macquarie · ALP

– in reply - The. matters raised by the honorable member for. Barker (Mr. Archie Cameron) will be given attention. I understand that the honorable member will furnish some information regarding the petrol position in South Australia to the Minister representing the Minister for Supply and Shipping, who will look into the, matter. His remarks im-relation to Buck’s Bay also will be given careful consideration.

The honorable member for New England (Mr. Abbott) and the honorable member for Indi (Mr. McEwen) charged the Government with having permitted 50,000 bushels of wheat to be made into dog biscuits, despite the fact that three weeks previously millers were warned not to use wheat for that purpose. It is contended that wheat was sold at 4s. lid. a bushel instead of at a higher price. I do not know the facts of the case hut I shall arrange to have the matter examined. The Minister for Commerce and Agriculture (Mr. Scully) is absent to-day attending a wheat conference.

The honorable member for Maranoa (Mr. Adermann) has again referred to the tobacco industry. I recollect that this matter was raised by him when he introduced a deputation to the Minister for Commerce and Agriculture some time ago. I understand that his charge is that because appraisers have adopted a certain practice, the substantially increased subsidy by the Government does not benefit the growers. That subsidy had been a matter of contention for many years. The subsidy was paid because otherwise the cost of tobacco to the consumer would have been substantially increased, as during the war the price of imported tobacco almost trebled. The subsidy was based on the lower dividend as compared with the dividend paid before the war. I understand that the honorable gentleman requests the appointment of government appraisers so that the British-Australasian Tobacco Company Limited and other tobacco companies, but particularly the former, because it processes the bulk of tobacco sold on the Australian market, shall be required to pay for Australian leaf prices determined ) by a government appraiser, f shall certainly discuss that with the Minister for Commerce and Agriculture. There certainly seems to be some reason for the honorable gentleman’s request, if, as he says, that principle’ has been applied to other industries.

Question resolved in the affirmative.

page 779

PAPERS

The following papers were presented : -

Lands Acquisition Act - Land acquired for - Commonwealth purposes - East Sale, Victoria.

Postal purposes - Greenvale, Victoria. Passports Act - Regulations - Statutory Rules 1945. No. 183.

House adjourned at 10.22 p.m.

page 779

ANSWERS TO QUESTIONS

The following answers to questions were circulated: -

Wives of Ex-servicemen : Transport to Australia

Mr Fadden:
DARLING DOWNS, QUEENSLAND

n asked the Minister for Repatriation, upon notice -

What system of priority is adopted in the repatriation of wives, children and fiancees of Australian airmen from the United Kingdom ?
Are wives of officers of high rank given precedence ?
Did any unmarried wing commanders travel home on the Durban Castle ‘
Were their fiancees allowed to travel with them on the same ship?

Mr Frost:
Minister for Repatriation · FRANKLIN, TASMANIA · ALP

– The answers to the honorable member’s questions are as follows : - 1. (a) First priority is accorded wives of servicemen who have been discharged from the Forces and who are thus in a position to set up housekeeping; (6) wives who have suffered long separation, even although their husbands may still be serving, receive second priority; (c) expectant mothers are given special priority, even although their husbands may not have been discharged; (d) special priority may also be extended in what are termed hardship cases, e.g., where the serviceman’s health calls for the care and attention of a wife, or, conversely, where the wife’s health may be such that delay in embarking may bring about hardship; (c) ordinarily, widows are considered to have the lowest priority of all, but as a result of strong representations to the Minister, it was decided that in the case of a widow with children and where the in-laws, in Australia, were pressing for an early passage and were prepared to provide a home, special priority may be granted.

No.
The commission- is not in possession of a copy of the nominal roll of service personnel who were on board the Durban Castle.
The commission was not advised of any fiancees being on’ board - hi fact it did not receive any intimation from London regarding this vessel. It was not a “ bride “ ship.

Mr White:
BALACLAVA, VICTORIA

e* asked the Minister for Repatriation, upon notice -

What is the number of (a) wives, (ft) children and (c) fiancees of Australian servicemen, still awaiting transport from Great Britain to Australia?
How many of (a), (6) and (o) have been returned to Australia since V-P Day?
When is it estimated that all will leave for Australia?

Mr Frost:
ALP

– The answers to the honorable member’s questions are as follows: -

As at the 28th February, 194fi, the position was as follows: - (a). 2,40(5, (6) 501, (c) fiancees are not provided for in the free passage provisions as contained in the Australian Soldiers’ Repatriation Regulations, but where the fiancee of a member makes the journey at private expense and marries the serviceman within one month after arrival, the commission is prepared to consider, favorably, an application for refund of expenses, provided, of course, that the amount involved does not exceed what the journey would have cost the Commonwealth in the case of an eligible wife. In the circumstances, it will be seen that the commission has no knowledge of the total number of fiancees involved. 2. (a) 549, (6) 122, (c) I.
It is not possible to form an estimate.

Suiting Materials : Export

Mr Abbott:

t asked the Acting Minister for Trade and Customs, upon notice -

Is there a shortage of suiting materials, particularly with regard to the requirements of ex-soldiers?
Is it a fact that all supplies of worsteds in New South Wales from the Yarra Falls Company Limited have been cut off from the local market?
Is it a fact that the Yarra Falls Company Limited is controlled by what is known as the “ Collins House Group” ?
Is it a fact that this powerful company is being given preferential treatment in the issue of export licences by the Minister?
Is it a fact that by selling in the export market this company obtains an extra profit of at least 2s. 6d. a square yard over the home market?

Mr Dedman:
ALP

– The answers to the honorable member’s questions are as follows : -

There is a shortage of suiting materials of the worsted variety which is the type mainly preferred by Australian men. The supply position in regard to tweeds and woollens is much better and in excess of local demand. Such shortages as exist of worsted suitings is due almost solely to the inability of textile mills to attract female labour. The requirements of ex-soldiers arc catered for by an arrangement made between the Government and the Federal Retailers Association, whereby the latter body agreed to give preference to discharged personnel for one suit, two fashion shirts, one pair of shoes and one hat. If this agreement is faithfully applied, then servicemen should have no difficulty in obtaining a suit within a reasonable period of their discharge.
Although Yarra Falls Company Limited have recently transferred their agency from Hooper and Harrison to other Sydney distributors, New South Wales is still receiving the same percentage of the factory’s total output which is allocated to the Australian market. Whilst the Commonwealth has no control over distribution, steps have been taken which should enable the previous recipients of Yarra Falls cloth through Hooper and Harrison to secure their previous quota through the present distributors.
Yarra Falls Company is a limited liability company. Details of the persons holding shares in it are available from the RegistrarGeneral’s Office, Melbourne. I have no information as to how the company is controlled.
I have not given any instructions on the lines suggested nor have my responsible officers any knowledge of any such preference having been given. If, however, information be supplied to substantiate the suggestion contained in the question, the matter will be fully investigated.
No.

Food Ships for Indonesia

Mr Ryan:

n asked the Prime Minister, upon notice -

Will he read an item in a Sydney Sunday newspaper of the 24th March, in which a Dutch ex-internee asks his Australian friends, Former prisoners of war in Java, if they remember that his wife and children risked their lives to smuggle supplies into the camps, and concluding, “ Do you know that countrymen of yours now keep from my wife and children the very things they brought to you with great risk for their liberty and theirlives? Do youknow that my wife and children are still living in camps, that they are still urgently in want of sufficient food and medicines “?
Will he, after reading this item, suggest to all organizations of ex-servicemen that copies should be printed for distribution to all their members?

Mr Chifley:
ALP

– The answers to the honorable member’s questions are as follows : -

The Prime Minister is aware of the contents of the item referred to’ by the honorable member.
ThePrime Minister regrets that he cannot see his way clear to adopt the suggestion.

Re-establishment : Malarial Ex-servicemen .

Mr Chifley:
ALP

y. - Yesterday the honorable member for Wentworth (Mr. Harrison) asked the following question : -

Will thePrime Minister state whether exservicemen who contracted malaria are prohibited from obtaining positions in the Public Service? Is it a fact that malaria cases are not accepted as pensionable by the Repatriation Commission? If so, will the right honorable gentleman explain why ex-servicemen who contracted malaria in the execution of their duty are penalized by being prevented from obtaining positions in the Public Service?

The answer to the honorable member’s question is as follows : -

No. The fact of having contracted malaria does not itself prohibit appointment to the Commonweal th Public Service. All appointees must pass a medical examination, but there is provision in the Public Service Act for the admission of servicemen who do not reach the health standard required of other entrants. War pensions are granted in respect of incapacity arising from malaria in the same manner as incapacity arising from any other disability.

Cite as: Australia, House of Representatives, Debates, 28 March 1946, viewed 22 October 2017, <http://historichansard.net/hofreps/1946/19460328_reps_17_186/>.

View PDF View XML View in Voyant

House of Representatives28 March 1946

DEATH OF THE HONORABLE SIR ROBERT “WALLACE BEST, K.O.M.G

Mr CHIFLEY:Prime Minister and Treasurer · Macquarie · ALP

Mr McEWEN:Indi

Mr HOLT:Fawkner

STEVEDORING INDUSTRY

Mr CHIFLEY:Prime Minister and Treasurer · Macquarie · ALP

QUESTION

RE-ESTABLISMENT

Mr GEORGE LAWSON:BRISBANE, QUEENSLAND

Mr DEDMAN:Minister for Post-war Reconstruction · CORIO, VICTORIA · ALP

QUESTION

SALVAGE COMMISSION

Mr HARRISON:WENTWORTH, NEW SOUTH WALES

Mr CHIFLEY:ALP

Mr Harrison:

Mr CHIFLEY:

Mr Harrison:

Mr CHIFLEY:

QUESTION

MOTOR VEHICLE MANUFACTURE

Mr ABBOTT:NEW ENGLAND, NEW SOUTH WALES

Mr DEDMAN:ALP

QUESTION

COAL-MINING INDUSTRY

Mr JAMES:HUNTER, NEW SOUTH WALES

Mr DEDMAN:ALP

QUESTION

BRETTON WOODS AGREEMENT

Mr MENZIES:KOOYONG, VICTORIA

Mr CHIFLEY:ALP

Mr Menzies:

Mr CHIFLEY:

Mr Holt:

Mr CHIFLEY:

Mr Menzies:

Mr CHIFLEY:

Mr Menzies:

Mr CHIFLEY:

QUESTION

COMMONWEALTH BANK

Mr McEWEN:

Mr CHIFLEY:ALP

Mr Abbott:

Mr CHIFLEY:

Mr Abbott:

Mr CHIFLEY:

Mr Abbott:

Mr SPEAKER:

Mr CHIFLEY:

Mr Abbott:

INTERIM AIR FORCE

Mr DRAKEFORD:Minister for Air · MaribyrnongMinister for Air and Minister for Civil Aviation · ALP

QUESTION

FAT STOCK SALES AT MELBOURNE

Mr LEMMON:FORREST, WESTERN AUSTRALIA

Mr SCULLY:Minister for Commerce and Agriculture · GWYDIR, NEW SOUTH WALES · ALP

Mr McEWEN:

Mr SCULLY:

QUESTION

CIVIL AVIATION

Mr GUY:WILMOT, TASMANIA

Mr DRAKEFORD:ALP

Mr Guy:

Mr DRAKEFORD:

QUESTION

FLOOD DAMAGE

Mr ANTHONY:RICHMOND, NEW SOUTH WALES

Mr CHIFLEY:ALP

Mr CHIFLEY:

QUESTION

STONY GROUND

Mr MORGAN:REID, NEW SOUTH WALES

Mr SPEAKER:

Mr MORGAN:

Mr FORDE:Minister for the Army · CAPRICORNIA, QUEENSLAND · ALP

Mr Morgan:

Mr Menzies:

Mr FORDE:

Mr Pollard:

House of Representatives
28 March 1946

Mr CHIFLEY:
Prime Minister and Treasurer · Macquarie · ALP

Mr McEWEN:
Indi

Mr HOLT:
Fawkner

Mr CHIFLEY:
Prime Minister and Treasurer · Macquarie · ALP

Mr GEORGE LAWSON:
BRISBANE, QUEENSLAND

Mr DEDMAN:
Minister for Post-war Reconstruction · CORIO, VICTORIA · ALP

Mr HARRISON:
WENTWORTH, NEW SOUTH WALES

Mr CHIFLEY:
ALP

Mr ABBOTT:
NEW ENGLAND, NEW SOUTH WALES

Mr DEDMAN:
ALP

Mr JAMES:
HUNTER, NEW SOUTH WALES

Mr DEDMAN:
ALP

Mr MENZIES:
KOOYONG, VICTORIA

Mr CHIFLEY:
ALP

Mr CHIFLEY:
ALP

Mr DRAKEFORD:
Minister for Air · MaribyrnongMinister for Air and Minister for Civil Aviation · ALP

Mr LEMMON:
FORREST, WESTERN AUSTRALIA

Mr SCULLY:
Minister for Commerce and Agriculture · GWYDIR, NEW SOUTH WALES · ALP

Mr GUY:
WILMOT, TASMANIA

Mr DRAKEFORD:
ALP

Mr ANTHONY:
RICHMOND, NEW SOUTH WALES

Mr CHIFLEY:
ALP

Mr MORGAN:
REID, NEW SOUTH WALES

Mr FORDE:
Minister for the Army · CAPRICORNIA, QUEENSLAND · ALP

Mr FALSTEIN:
WATSON, NEW SOUTH WALES

Mr FORDE:
ALP

Mr ADERMANN:
MARANOA, QUEENSLAND

Mr SCULLY:
ALP

Mr FORDE:
ALP

Mr CONELAN:
GRIFFITH, QUEENSLAND

Mr CALWELL:
Minister for Immigration · MELBOURNE, VICTORIA · ALP

Mr DEDMAN:
ALP

Mr SPEAKER (Hon J S Rosevear:
DALLEY, NEW SOUTH WALES

Mr ANTHONY:
Richmond

Mr DEDMAN:
Minister for Post-war Reconstruction and Minister in charge of the Council for Scientific and Industrial Research · Corio · ALP

Mr FRANCIS:
Moreton

Mr SCULLY:
Minister -for Commerce and Agriculture · Gwydir · ALP