House of Representatives
13 August 1963

24th Parliament · 1st Session

  1. House of Representatives
  2. 24th Parliament
  3. 1963

Mr. SPEAKER (Hon. Sir John McLeay) took the chair at 3 p.m., and read prayers.

page 3

GREY ELECTORAL DIVISION

Return to Writ - Member Sworn

Mr SPEAKER:

– I have received a return to the writ which I issued on 16th April, 1963, for the election of a member to serve for the electoral division of Grey in the State of South Australia to fill the vacancy caused by the death of Edgar Hughes Deg Russell, Esquire. By the endorsement on the writ it is certified that Jack Mortimer has been elected.

Mr. Jack Mortimer was introduced and made and subscribed the oath of allegiance as member for the division of Grey, South Australia.

page 3

EAST SYDNEY ELECTORAL DIVISION

Mr SPEAKER:

– I have to announce, with deep regret, the death on 31st July of the honorable member for East Sydney, the Honorable Edward John Ward. I have to inform the House that I have to-day issued a writ for the election of a member to serve for the electoral division of East Sydney in the State of New South Wales in the place of the deceased gentleman. The dates in connexion with the election were fixed as follows: - Date of nomination, Tuesday, 3rd September, 1963; date of polling, Saturday, 28th September, 1963; date of return of writ, on or before Saturday, 2nd November, 1963.

page 3

DEATH OF THE HONORABLE EDWARD JOHN WARD, M.P

Sir ROBERT MENZIES:
Prime Minister · KooyongPrime Minister · LP

– Mr. Speaker, it falls to me to make reference to the announcement that you have just made officially of the death on 31st July of the honorable member for East Sydney, Edward John Ward. The late Mr. Ward had a notable record in the Commonwealth Parliament in both length of service and offices held. It is worth while, perhaps, to remind honorable members and the public of this record. He was first elected to the House of Representatives at a by-election in March, 1931. The general election of 1931 saw him narrowly defeated by Mr. John Clasby, who died in January, 1932, before taking his seat. Mr. Ward won the subsequent by-election and was then undefeated at eleven successive ballots. He was a Temporary Chairman of Committees between March, 1932, and August, 1934. At that time, people from my own side of politics were in office. He reached Cabinet rank when Labour came into office and was Minister for Labour and National Service between October, 1941, and September, 1943. In addition, he was a member of the Production Executive of Cabinet from 1941 until early in 1946, a period which covered a considerable span of the war years. From September, 1943, until my government came into office at the end of 1949, he was Minister for Transport and Minister for External Territories.

In short - this is a very remarkable record - he was consistently chosen by his fellow members of the Australian Labour Party to be a Minister right through the lives of the Curtin and Chifley Governments, or, as one might say, right through the period of his membership of this House during which his party was in power. He was the leader of the Australian delegation to the 30th Session of the International Labour Organization at Geneva in June and July, 1947. He also held parliamentary office as a member of the Joint Committee on Co Constitutional Review from 1956 to 1959.

Sir, it is clear from this simple, factual narrative that our late colleague at all times enjoyed the confidence and support of his party and of his constituency. This is not to be wondered at when one considers his immense capacity for work and his lifelong enthusiasm for the Labour cause, in which he profoundly believed and in respect of which, if I may put it in this way, he accepted no compromise, gave no quarter and expected none. He gave the most devoted service to his electors, as all Ministers, including myself, are very well aware. He was one of the lively and controversial personalities in this House, and all honorable members will miss him very much. I am sure I speak for all of us when I say to his widow and to his family, including his grandchildren, that we offer them our deepest sympathy in their very great loss. I move -

That this House expresses its deep regret at the death of the Honorable Edward John Ward, a member of this House for the Division of East Sydney and a former Minister of the Crown, places on record its appreciation of his long and meritorious public service and tenders its profound sympathy to his family in its bereavement.

Mr CALWELL:
Leader of the Opposition · Melbourne

– The late member for East Sydney, the Honorable Edward John Ward, died too soon. His death was not expected. His last illness was of ten days’ duration and the last phase of it was of several hours’ duration only. When the people around Australia heard that Eddie Ward, as he was popularly known, was dead, there was pained surprise on the part of almost all who had ever known him; there was great anguish, disappointment and sadness on the part of hundreds of thousands of people throughout Australia who knew him or had followed him, who respected him and some of whom indeed had a great love and an abiding affection for him. His place will be hard to fill. Indeed, it will probably never be filled because the deceased gentleman was not an ordinary parliamentarian. He was an extraordinary man in many respects. He had rare gifts, and he used them, as the Prime Minister (Sir Robert Menzies) has so generously said in his tribute to Mr. Ward. I disagree with nothing that the Prime Minister has said in his eloquent tribute and I think that he has been most generous in everything that he has said, both in the historical and personal references in his tribute.

The late honorable member was gifted by nature. He was greatly endowed indeed and he spent his gifts and his talents in the way he thought he should spend them in the service of his fellow men and women throughout this country. He was an indefatigable worker. He was one of the most industrious men I have ever met or would ever hope to meet. He was eloquent; he had remarkable fluency; he had a command of English that few other people could ever acquire, and he acquired it largely as a result of his own efforts because his schooling was not pursued to any great length. He went to work quite early in life, and whatever qualifications he ultimately attained were the result of his own reading, his own observations and his association with the people with whom he talked and with whom he mixed.

Mr. Ward was a very good man personally. His family life was beyond reproach. He was a devoted husband and a devoted father. He spent himself in the interests of his family and his friends everywhere. As the Prime Minister has said, he fought hard for what he believed in. He fought from his earliest days until almost (he moment of his death. He entered public life at the age of 25 when he became a member of the Sydney City Council. From the beginning of his aldermanic days until he died as a member of this Parliament, at the age of 64, he was always in the public eye, always a controversial figure. He was always in the forefront fighting for some cause or other. He was never to be repressed. He was never a man who followed blindly behind any leader. He never accepted any doctrine or any view without first questioning its validity, but once a decision was made in his party’s councils he democratically accepted that decision and advocated it. He was a great democrat in that sense, and he was a very loyal friend.

We on this side of the House will miss him. Many men on the other side of politics who have known him over the years have had occasion, of course, to disagree with him, but outside the chamber he was not the ferocious fighter he was inside it. He was a quite humane and happy man outside politics. He had many friends in all branches of political thought and, indeed, among those who had no political persuasions. That that was so was evidenced by the large numbers of people who attended his funeral and who paid tribute by way of telegrams, floral wreaths and other expressions of sympathy to his widow and children. I think we shall never see in this Parliament another man like Edward John Ward. Men like him come very rarely, and we all are richer for having known him.

His name will remain in the annals of this Parliament for a long time, because he was fated to serve here for half the present lifetime of this Federation. He served in half the Parliaments which have gone by since the Federation was formed and yet he died at the comparatively early age of 64 years. That, in itself, is a remarkable record. I join the Opposition with the Government parties in the warm expressions of sympathy which the Prime Minister has so feelingly uttered to the widow, children and grandchildren of our departed colleague.

Mr McEWEN:
Minister for Trade · Murray · CP

– I desire, .Mr. Speaker, to associate the Australian Country Party with the condolences so feelingly uttered by the Prime Minister (Sir Robert Menzies) and the Leader of the Opposition (Mr. Calwell) and to place my party’s sympathy on record. As we all know, the late honorable member for East Sydney had a very long record of service in this Parliament, and also a very long and devoted record of service to his party. In my day, I have known no more untiring battler for the principles he stood for than the late member. From the day he entered the Parliament he began to fight for the things in which he believed and against the things in which he did not believe, and he waged that fight continuously for the next 32 years.

He came into the Federal Parliament at the time of the great depression. It was clear to all of us who served in the Parliament in those early depression and postdepression days that his mind and his thinking were influenced and affected by the suffering that he saw and by the unemployment and the controversies of those days. Those conditions helped to shape the man’s character and his speeches to the Parliament constantly bore the evidence of his recollection of the things that he did not want to see happen again. He fought untiringly for the views that he held.

Every parliamentarian will understand that we who sat on the opposite side of the House to him more often than not did not agree with his views, yet I am sure we all respected the tenacity with which he held his views and the determination with which he fought for the things that he stood for. His record in this regard was consistent, whether he was in opposition or in government. Those who were in a position to observe his capacity as an administrator have, in my experience, always spoken highly of him and his ability in that respect.

From my own observations, I know that he was certainly a very doughty oppositionist. He knew what he wanted and what he did not want and he spared neither himself nor his opponents - and perhaps sometimes not even his friends - in fighting for what he was trying to get, or to stop. He thrived on controversy. He was a great parliamentarian and a picturesque figure in Parliament. He made his contribution in his day and those of us who sat in this Parliament with Eddie Ward will always remember him. I extend the most profound sympathy from the Australian Country Party to Mrs. Ward and the family.

Mr COPE:
Watson

- -Mr. Speaker, I support the eloquent expressions of sympathy by the Prime Minister (Sir Robert Menzies), the Leader of the Opposition (Mr. Calwell) and the Minister for Trade (Mr. McEwen). Most honorable members are aware that a very close personal friendship existed between Eddie Ward and me. I vividly recall that on the day of his death I spoke to him over the telephone. He told me how well he was and said he hoped to be back in his office next day to resume his electoral work and to prepare for the forthcoming Budget session. Needless to say, when I received the news of his death on that same night I was greatly shocked. Mr. Ward never disclosed any illness from which he may have suffered. I think honorable members will agree that on some occasions during the last two or three years he did not look very well. Several times I asked him in the House whether he felt well. He was a stubborn man who would not follow the advice of his medical advisers. In fact, only a week or two before his death his doctor had advised him to enter a hospital, but, because of his great conscientiousness, particularly towards his electorate and the Australian Labour Party, he decided to ignore that, advice and to carry on with his work. I am sure that my friend Eddie passed on as he would have liked to pass on. In other words, he died in office.

His value to the Australian Labour Party can never be over-emphasized. During general election and by-election times, both in the Federal and State spheres, his services were always in keen demand. The Australian trade union movement also made great demands on his services. He was a great lover of Rugby League football, but I recall that on numerous occasions when I asked him to come to the football with me on a Saturday or a Sunday he said, “ Unfortunately I cannot come because I have too much work to do “. He gave away much of his leisure time and much of his home life to benefit the Australian Labour Party and the Australian trade union movement.

As the Leader of the Opposition remarked, Mr. Ward was a devoted family man. I visited his home on many occasions, and the great bond of love which existed between himself and his wife and family was very evident. I extend to his wife Edie, his daughter Dorothy, his son Edward, and his grandchildren my sincere expressions of sympathy.

Sir WILFRID KENT HUGHES:
Chisholm

– I crave the indulgence of honorable members to fill in what I regard as a very important gap in the recital of the political record of our late colleague. I do so not as one who shared his political principles. As every one knows, our political principles were more often poles apart than close together, but I worked very closely with Mr. Ward from the middle of 1947 until the end of 1949 in my capacity as Minister for Transport in Victoria. During that time the question of the standardization of railway gauges was very prominent. That was the first occasion on which I came into close contact with our late colleague. At that time he was the Commonwealth Minister for Transport, so naturally I had to work very closely with him.

I support very strongly the remarks of the Deputy Prime Minister (Mr. McEwen) in relation to Mr. Ward’s work as an administrator, both as Minister for Transport and as Chairman of the Australian Transport Advisory Council. Towards the end of the war, the late Sir Harold Clapp was asked to submit a report on railway gauges, which, if I remember correctly, was issued in March, 1945. There were discussions between representatives of New South

Wales, Victoria, South Australia and the Commonwealth with a view to agreeing on a method of giving effect to the gauge standardization proposals. Queensland and Western Australia did not wish to be parties to the agreement.

The Commonwealth Parliament had passed a bill. The South Australian Parliament passed a bill in 1946, the same year as that in which the Commonwealth bill was passed. I had the honour of piloting a bill through the Victorian Parliament in August of 1948. But the first bill to authorize the commencement of standardization was the Railway Standardization (South Australia) Agreement Bill, which was passed unanimously in this House on 26th October, 1949.

I well remember being in Parliament House at that time. We had been discussing the matter in the Victorian Cabinet, and as the Federal House was about to dissolve for the 1949 election, which, as honorable members will recall, led to a change of government, we wanted to get the bill through for the commencement of Victorian standardization before the House rose. Our late colleague, then Minister for Transport, even discussed the matter with the then Prime Minister, who said that he would like very much to accede to our request but that he did not think it was right for the House to be asked to pass a bill, which was then printed and ready, in the dying hours of the session, which finished on that same afternoon. But in the final stages of debate I think it was the member for Bendigo, the Tate MajorGeneral Rankin, who asked how Victoria came into this agreement and why the bill did not apply to Victoria. The reply by Mr. Ward was -

The question of how this agreement affects Victoria has been raised. Only to-day I have had discussions with the Victorian Minister of Transport and his technical officers and I am quite confident that, had this Parliament not been drawing to its close, an agreement with Victoria would have been signed and the necessary legislation would have been passed through the Parliament.

I mention these facts because I believe that our late colleague may be remembered by future historians as one of the pioneering administrators of railway gauge standardization more than in any other capacity. After that Parliament had been prorogued and the general election took place another government came to office, and later many other members of this Parliament, very ably led, if I may say so, giving honour where honour is due, by the honorable member for Mackellar (Mr. Wentworth), built very successfully upon the foundations that had been laid.

I wanted to pay this small passing tribute to one who was not of my own political faith, who did not hold my political views but who, I believe, did an excellent job, in conjunction with the late Sir Harold Clapp, the late Brigadier W. D. Chapman and Mr. Curnow, who were members of that very able band of back-room boys, so to speak, of the Commonwealth Department of Transport, and who were instrumental in laying the foundations of railway gauge standardization in Australia. I mention this fact in passing so that it will not be forgotten, and I would like to join the Prime Minister (Sir Robert Menzies), the Leader of the Opposition (Mr. Calwell), the Deputy Prime Minister (Mr. McEwen) and others in extending sincere sympathy to the family of our late colleague.

Mr PETERS:
Scullin

– I know that it does not matter at all to the dead man under ground what living men remember or forget. I know, too, that whilst the late Edward Ward, if he were with us to-day, would appreciate the expressions of the various members who have spoken and would appreciate the tributes paid by the press and by other members of Parliament to his industry and fluency, the tributes that he would appreciate most would be those of the thousands of workers on the job, and of the thousands of workers in their meeting places throughout this country who, perhaps not eloquently, paid tribute to the services that he rendered and the purposes for which he worked, rather than the capacities that he, as an individual, possessed. I, too, wholeheartedly pay my tribute not merely to his fluency as a speaker and to his industry as a member of the Parliament but also to the purposes for which he used the capacities with which he was endowed. I join with the other people who have spoken in expressing my deep sympathy to his wife, his son and daughter, his grandchildren and all those who were closely associated with him. I content myself, Mr. Speaker, with saying that the words that James Russell Lowell used in connexion with the death of Garrison, who was a fighter against chattel slavery, are true also of the death of Eddie Ward, who fought to promote economic justice and social equity in this community. The words are -

One more star neath time’s horizon dropped To gleam o’er other lands and seas; One more heart that beat for freedom stopped. What mournful words are these?

Mr JAMES:
Hunter

– I should like to associate myself with the motion of condolence on the death of the honorable member for East Sydney. I wholeheartedly support the remarks of the Prime Minister (Sir Rob:rt Menzies), the Leader of the Australian Country Party (Mr. McEwen), the Leader of the Opposition (Mr. Calwell) and other colleagues in this chamber. As I look around the chamber, Mr. Speaker, my thoughts go back to the time when I was a lad of sixteen years of age, and when my father came to this Parliament. It was only a few years before the honorable member for East Sydney was elected. As the years rolled on, I got to know the honorable member for East Sydney affectionately. I was impressed by the remarks of the Leader of the Australian Country Party when he referred to the honorable member’s memories of the last depression. The leader did not use those exact words, but he implied that the memories were constantly uppermost in the honorable member’s mind. Those thoughts were always uppermost in the minds of the great majority of the Australian people. The honorable member for East Sydney always believed, as I believe, that there should never be poverty amid plenty, as there was in the days of the last depression. It is true that he was the champion of the poor.

It has been said that his schooling was not as extensive as he would have liked it to be. I always think that there is a vast difference between schooling and education. What the honorable member for East Sydney lacked in schooling he made up for in education in the field of hard knocks. He may not have been able to manipulate words as some other honorable members of the Parliament can; but I believe that it is much easier to test the sincerity of a man who cannot manipulate words as others can. I am inclined to think that the late Edward Ward was the Eugene Debs of Australian politics. He never flinched from the principles that he held dear. He was the champion of the poor. His memory will be revered not only in this Parliament but throughout the length and breadth of Australia in the years to come. He could never be regarded as an educated idiot. He was not the type of man who would put his signature - or would even think of doing it - to a letter to a person called “ Christine “. He gained his knowledge through hard work and devotion to the cause and principles of the Australian Labour Party. I will miss him. I know that many thousands of Australians will miss him too. I express my deep sympathy to his wife, his children and his grandchildren.

Mr CURTIN:
Smith · Kingsford

– I would like to give my support to the motion. I knew the late Ted Ward for 35 years. I knew him long before he came into the Federal Parliament. With his pass;ng, the Australian Labour Party has lost one of its most able representatives. He was a doughty fighter for the little people. He was dedicated to his job and worked ceaselessly, night and day, in the interests of his constituents. He was a remarkable character. He never let up in his efforts to bring to a successful conclusion any project with which he was associated. He was outspoken in his advocacy of the principles of the Australian Labour Party and took part in many great debates on that subject. A skilled and able debater in the Parliament, he was always listened to with rapt attention by friend and foe alike. He gave no quarter and asked for none.

He had a long and distinguished record in both the political and industrial fields, and will be sadly missed by all those who came in close contact with him throughout his life. Australia has lost a great son. I take this opportunity of tendering my sympathy to his widow and to the members of her family.

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

Sir Robert Menzies:

– I suggest, Mr. Speaker, that as a token of respect the House should lift until 8 o’clock p.m.

Mr SPEAKER:

– I feel sure that the suggestion made by the Prime Minister meets with the concurrence of the House. As a mark of respect to the memory of the deceased member the sitting is suspended until 8 o’clock.

Sitting suspended from 3.38 to 8 p.m.

page 9

APPROPRIATION BILL 1963-64

Message from the Governor-General recommending appropriation for proposed expenditure announced.

Bill presented by Mr. Harold Holt, and read a first time.

Second Reading. (Budget Speech.)

Mr HAROLD HOLT:
Treasurer · Higgins · LP

– I move -

That the bill be now read a second time.

In speaking to this motion, it is my privilege as Treasurer to present the Government’s Budget proposals for 1963-64. Following the amendments to Standing Orders, the Budget speech is now made on the second reading of the Appropriation Bill, whereas in former years it was made in the Committee of Supply on consideration of the Estimates.

I am happy to be able to bring down a budget under conditions so propitious as those which rule in the Australian economy to-day. On the one hand, we can look back on a year of strong, continuous, widespread growth; on the other, we can look forward to possibilities at least as favorable - and in all probability more so - in the current year and perhaps beyond.

The gross national product may be taken as a broad measure of activity and output. In 1962-63 this was 8 per cent, greater than that of 1961-62. Prices were generally stable through the year, so that increase can largely be regarded as growth in real terms. It was quite a high rate of growth even though measured against a year when some slackness prevailed. Some say the rate should have been even faster; yet, clearly, it was sufficient both to absorb the increase in the work-force and to make possible a significant reduction in unemployment.

It was a good production year - notably so in the rural field, where several of the main industries achieved records in output. There was higher activity in building and construction, transport and communications and a generally greater volume of trade. Externally, the year brought excellent results. Exports reached the record total of the previous year and gave a favorable trade balance of £33,000,000. Imports rose considerably, but this was partly due to re-building of stocks and partly a response to greater industrial activity within Australia. The total for the year cannot be regarded as excessive. Private capital inflow continued strongly and the Commonwealth was able to obtain some £66,000,000 from loans abroad. This, incidentally, was a record sum for any one year. Over the year, our holdings of gold and foreign exchange rose by £65,000,000 and, at 30th June, stood at £626,000,000. In addition, our drawing rights at the International Monetary Fund now stand at £223,000,000.

It was a year of expansion and yet, signifying much, it was also a year of stability. Consumer goods prices changed little. The supply of goods and services seems on the whole to have been adequately matched by demand. This demonstrates in actual experience a great fact - one which the Government has consistently asserted - the fact that stability of costs and prices and economic growth can and do go together. It would be difficult to show that any one has lost through stability. Wage earners have gained by it; for although nominal wage rates have been more or less stable for a considerable time, average earnings have increased: This means that, with prices stable, average living standards have improved. For the most part, too, the business world seems to have got along well under stable price conditions. The Commonwealth Statistician estimates that incomes of industrial and trading companies in 1962- 63 were 11 per cent, above the comparatively low year of 1961-62 and were thus approximately as high as they were in the boom year 1959-60. Most businesses other than companies also gained ground. But it may well be in industry, with its large labour force and high capitalization, that stability of wage rates and other cost factors has done most to encourage growth; it is certainly clear that, with rising output and a wider spreading of overheads, costs per unit of production tend to fall. Under these conditions, too, enterprises get more benefit from anything they do to improve productivity and that is important if the quest for ever-higher productivity is to go on. It applies to farm and factory industries alike.

But important though it believes stability to be, the Government is not preoccupied with stability to the exclusion of all else.

That has often been alleged but it is not true. We regard stability as important on both economic and social grounds. We see it as a prime condition of sound economic growth. But we have never thought of it as sufficient in itself to achieve all that we want to achieve. We do not believe that it will necessarily provide the vital impetus which growth requires. That impetus must largely, if not entirely, find its origins elsewhere.

Governments, and especially central governments in a federation such as ours, have a positive role in the matter. They have long accepted the function of providing conditions favorable to growth; and stability is one of those conditions - in my view, probably the most important. But, increasingly as the years have gone on, governments in the Commonwealth, and this Government in particular, have been prepared to use their powers and resources to promote growth actively. They have sought to do this partly by extending their own facilities and services, as in transport and communications and research, partly by assisting the State governments to enlarge their services and developmental activities, and partly by direct aids and incentives to private enterprise. In this respect, of course, we have recognized that private enterprise, which provides three jobs out of every four in our economy, must always have a crucial role in growth.

Each year our developmental activities in the Commonwealth widen and take on greater variety. In their many forms they now comprehend a very large part of the annual Budget. Were I to list all the items which could .properly be said to aim, directly or indirectly, at discovery and development of resources, improvement of productivity and encouragement of enterprise, the catalogue would be very long indeed and the annual cost would add up to some hundreds of millions of pounds.

This year we again propose to add substantially and in a variety of ways to our provision for developmental activity. I feel justified, and indeed I take some pride, in putting these measures in the forefront of our budgetary scheme - this because of the point they give to the vitality and forwardlooking character of Commonwealth economic policy in these times.

page 10

ACTION FOR GROWTH

Immigration

Firstly, it gives me pleasure to announce that the Government has decided to set an immigration target for 1963-64 of at least 135,000 permanent and long-term arrivals, an increase of 10,000 on the target for last year. We expect this, after taking departures into account, to result in our securing at least 100,000 new settlers. One of the most reassuring features of our generally improved and expanding economic situation has been the strong increase in migration.

Within the overall programme for the year, provision will be made for 45,000 British migrants under the assisted passage scheme, which will be the largest intake of assisted British migrants in any financial year since the post-war immigration programme began. There will be special emphasis in the programme on attracting professional people, skilled tradesmen and other key types of workers.

Loan Council Programmes

I put this move on immigration foremost because of the surpassing importance immigration has for growth in a multitude of ways - above all, in the contribution it will make to the build-up of a larger and more versatile Australian community. But if our numbers increase - as they are increasing - rapidly, we cannot afford to lag on the social side of development - on the provision of facilities for living, for the well-being of people, young and old, and for their education both as citizens and as effective members of our national workforce. This calls for more and more expenditure on housing, schools, universities, hospitals, water and power supply and transport. The Commonwealth has long recognized this in the ever-increasing scale and range of grants it makes to the State governments and in the support it has given to the Loan Council borrowing programmes for works and housing.

This year, as announced some weeks ago, the Government has agreed to these borrowing programmes being increased in the current year by the large amount of £17,000,000 to a record total of £272,000,000. In the event of a short-fall in borrowing, the Government will, as in other years, stand ready to support the programme from its own resources. Along with these governmental programmes goes a borrowing programme of £122,800,000 for semi-government and local authorities with programmes of more than £100.000. This also is a record figure and involves an increase of approximately £10,000,000. In addition to these, there is the borrowing programme for smaller authorities. Formerly there were overall Loan Council limits on the borrowings of these smaller authorities. On the initiative of the Commonwealth these limits have been removed.

Housing - Savings Banks

I turn now to housing, and in particular I refer to the part that the savings banks will be playing. Of all the fields for social development none has stood higher in our order of priorities than housing. We are again this year providing upwards of £90,000,000- the actual figure will be about £97,000,000- for expenditure on housing, the greater part of it on new dwelling construction but a significant part also for the purchase of existing homes.

In addition, we have encouraged the flow of housing finance from institutional sources and support for housing from this quarter is now rising rapidly. In the recent June quarter, the number of loans approved by institutions for new housing was 9,770 compared with 7,847 in the March quarter and 6,419 in the June quarter of 1962. The amount, as distinct from the number of such loans is increasing still faster. In the June quarter the amount approved was no less than £30,270,000, an increase of £7,180.000 or 31 per cent, over the March quarter, and £12,490,000 or 70 per cent, over the June quarter of last year.

The savings banks are to-day the largest institutional lenders for housing purposes. They have in recent times increased very greatly their rate of housing loan approvals. The aggregate rate of such approvals by all savings banks has lately been around £100,000,000 per annum. This is almost double the rates of 1960-61 and 1961-62. This increase in lending exemplifies the co-operation the Government has had from the savings banks concerned in its objective of increasing the amount of finance available for housing. On behalf of the Government, I wish to acknowledge the value of the contribution they are making.

We have recently taken action designed to improve the position still further.

The provisions of the Banking (Savings Banks) Regulations at present limit investments by the savings banks of depositors’ funds in housing loans to not more than 30 per cent, of current balances of their depositors. We have had discussions with the savings banks which are subject to the regulations about the possible effect of these provisions. Although the provisions have not to date operated to cause the savings banks to restrict their rate of housing loan approvals, it is apparent that the time is coming when they could have a restrictive effect, particularly in the case of one or two of the banks.

The Government has therefore decided to amend the regulations. We will do this in such a way as to enable the savings banks concerned to invest up to 35 per cent, of their depositors’ balances in housing loans. The detailed amendments of the regulations to give effect to this decision will be promulgated in the near future.

The amendments will reduce from 70 to 65 per cent, of depositors’ balances the minimum amount a savings bank is required to hold in cash and in government securities. In addition, a savings bank’s deposits with banks other than the Reserve Bank and loans by a savings bank to authorized dealers in the short-term money market will become permissible forms of investment within the “ 65 per cent, items “, the effect of this being to increase further the scope for investment in housing loans. A special provision will also be included in the regulations so that the permissible extent of a savings bank’s investments in housing loans will not be subject to reduction in the event of a temporary fall in the savings bank’s depositors’ balances. Otherwise, this would have been one of the inhibiting factors. Taken together, these amendments should ensure that the savings banks concerned will be able to keep up a steady rate of increase in their lending for housing purposes.

I turn now to rural industry. Rural industry is still the great mainstay of our export earnings abroad. It has put up a remarkably fine production performance in recent years. Overseas prices are still relatively adverse despite some recent improvement. In the face of this, it is vital to keep up the rate of improvement in productivity which these industries have achieved and which has stood to the economy so well. In the Budget we propose three new measures to that end.

Superphosphate Bounty

The first is a superphosphate bounty. Provision is made in the Budget for introduction of a bounty on superphosphate at the rate of £3 per ton. The estimated cost in 1963-64 is £7,000,000 and in a full year about £9,000,000.

Superphosphate is, of course, of great importance to most of Australia’s primary industries. Large tracts of our arable and pasture land are seriously deficient in phosphorus, and the discovery of this deficiency was one of the great steps in the expansion of our larger primary industries. Indeed, the role played by superphosphate in the opening-up of new areas and in the raising of yields of crops and pastures is one of the most fascinating stories of Australia’s rural history.

The purpose of the bounty is to stimulate increased use of superphosphate as a means of improving still further the productivity of farm lands and pastures. Details of the bounty scheme will be announced to-night by my colleague, the Minister for Customs and Excise (Senator Henty), and legislation will be introduced as soon as possible.

Investment Allowance on Plant and Equipment.

Much, of course, has already been done under the income tax law to encourage farm investment so as to improve the productivity of land and the efficiency of farm operations. The special depreciation allowance of 20 per cent, per year for primary producers on plant and structural improvements is a notable illustration. It is now proposed that primary producers be granted an investment allowance at the rate of 20 per cent, on new plant and equipment other than road vehicles. This allowance will be additional to the special 20 per cent, depreciation allowance. It will apply to new plant and equipment on which expenditure is incurred after 13th August, 1963 under contracts entered into after that date. The consequence of this concession will be that, in future, primary producers will be able to claim in the year in which eligible new plant and equipment is first used or installed ready for use, investment and depreciation allowances totalling 40 per cent, of the cost of the asset. The cost of the proposal to revenue is estimated to be £3,000,000 in a full year and £1,000,000 in 1963-64. A statement giving further details of the investment allowance will be made shortly.

Commonwealth Development Bank

The Government has decided to provide a further amount of £5,000,000 towards the capital of the Commonwealth Development Bank. The Development Bank has now been operating for about three and a half years. In that time it has made a significant contribution in its special field. The Development Bank’s principal function is to provide finance to assist primary production or to establish or develop industrial undertakings, particularly small undertakings, in cases where, in its opinion, finance is desirable but would not otherwise be available on reasonable and suitable terms and conditions. Since its establishment the Development Bank has approved loans to primary and secondary industry of the order of £37,000,000. It has also provided valuable assistance by way of hire-purchase finance for producers’ equipment.

The capital of the bank on its establishment was about £16,000.000. In 1961-62, the bank’s capital was increased by a further £10,000,000. The £5,000,000 now to be provided will raise it to nearly £31,000,000. Besides this, the bank has substantial reserve funds and the use of considerable loan moneys. The total resources available to it after the provision of the £5,000.000 additional capital will be approximately £70,000,000.

The provision of the additional capital will assist the bank to maintain and, indeed, increase its contribution to primary and secondary industry. Legislation to make the necessary amendment to the Commonwealth Banks Act 1959-1962 will be introduced during this session.

Special Developmental Projects

Besides its various measures to assist rural industry, the Government has, of course, been undertaking more and more commitments to provide financial assistance to State governments for developmental projects of a major kind. The Mount lsa railway, the beef roads programme, the brigalow lands development, the coal ports in New South Wales and Queensland and the KalgoorlieKwinana railway in Western Australia are examples of projects started earlier.

Some months ago, we agreed to join with New South Wales, Victoria and South Australia in constructing, under the River Murray Waters Agreement, a big storage reservoir on the Murray River at Chowilla in South Australia. The cost is estimated to be of the order of £14,000,000 and of this the Commonwealth will itself find one quarter. It will also advance to the State of New South Wales on agreed terms the share of that State in the cost of the project.

As announced some time ago, we have also agreed to provide to South Australia all the funds needed to convert the Broken Hill to Port Pirie railway to standard gauge, the State subsequently to repay 30 per cent, of the amount advanced over a period of 50 years. The cost of this project will be of the order of £20,000,000, and provision has been made for expenditure of £1,680,000 in 1963-64. The Commonwealth has now undertaken to provide finance for two further projects of large significance.

page 13

BLOWERING RESERVOIR

Discussions have taken place between the Commonwealth Government and the Government of New South Wales on the question of construction of a dam at Blowering on the Tumut River, provision for which was included in the Snowy Mountains Agreement of 1957. Until the dam is built, water discharged into the Tumut as a result of the operation of the Upper Tumut works of the Snowy Mountains scheme is largely uncontrolled and causes damage to properties along that river. More importantly, the water diverted into the Tumut, amounting to about 1,000,000 acre feet a year, cannot be fully utilized for additional irrigation in the Mumimbidgee valley. There is little scope for further irrigation development in the Mumimbidgee valley until an additional storage is provided. Construction of the Blowering storage will enable a very extensive increase in production and in population along the Murrumbidgee valley, and the project is thus one of considerable national importance. Both the Commonwealth and the Government of New South Wales have, therefore, been concerned that it should be constructed at an early date.

I am pleased to announce that arrangements for construction of the Blowering storage have been agreed between the Commonwealth and New South Wales Governments. The arrangements provide for the bulk of the work involved to be undertaken by the Snowy Mountains Hydro-electric Authority as agent and for the account of the State of New South Wales. The undertaking of this work by the authority will not affect the authority’s programme for completion of the Snowy-Murray section of the Snowy Mountains scheme by about 1969. Under the arrangements, planning for the construction of the storage will proceed immediately with a view to the commencement of construction at the earliest . practicable date. The Commonwealth will provide financial assistance to New South Wales in the form of repayable interestbearing loans to the extent of one-half of the cost of the project. The State for its part will undertake to make the necessary provision for the use on irrigated farms of the additional water that the project will provide. Legislation to approve an agreement between the Commonwealth and the State will be introduced in the near future.

page 13

NORTH-WESTERN AUSTRALIA

Over the past five years we have provided special assistance to Western Australia amounting to £6,500,000 for expenditure on a number of development works in the northern part of the State. This amount comprised a general assistance grant of £5,000,000 - the greater part of which was applied to the construction of the recently completed Ord River diversion dam and other works associated with the first stage of the Ord River irrigation project - and provision during the two years just completed of £1,200,000 for beef cattle roads and £300,000 towards the cost of a new jetty at Derby.

Under the beef cattle roads arrangement we have undertaken to provide a further £2,250,000, at a rate of £750,000 a year tor the next three years, and, in addition, there is a further amount of £500,000 to be provided in 1963-64 and 1964-65 for completion of the Derby jetty.

We believe that the development of this remote area calls for a level of special expenditure higher than that arising from these continuing commitments, and we have therefore offered Western Australia a further provision of £3,500,000 for expenditure during the next three years. The addition of this amount will mean that, over these three years, the Commonwealth will be providing special assistance of £6,250,000 for expenditure in the area, representing a considerable stepping-up of assistance as compared with the £6,500.000 made available in the preceding five years.

It is proposed that the new provision of £3,500,000 will be used for the construction of a deep water jetty at Broome, for further supply and drainage channels and associated works within the first stage of the Ord River irrigation project, and for such other works in the area as may be agreed. “ This further assistance will require negotiation of a Commonwealth-State agreement and the submission of special legislation to Parliament for approval.

For expenditure in 1 963-64 we have provided £1,000,000 for these new projects, £750,000 for beef cattle roads, and £350,000 for further work on the Derby jetty, a total of £2,100,000.

So much for specific developmental undertakings. We expect to be spending on them this year a total of £20,600,000. The comparable expenditure last year was £15,400,000

Territories

In our own Territories, where our responsibilities have become so much more important, we are providing each year very substantial and rapidly increasing amounts for developmental activity. In the Northern Territory we now have the beef roads programme, estimated to cost £4,570,000; towards that programme an amount of £1 ,200,000 is being provided in this Budget. Besides this, we expect to spend £7,386,000 on other capital works and services in the Territory, including housing, schools, hospitals, municipal services and pastoral improvement. Amongst other things, a start will be made on the extension of the Stokes Hill wharf at Darwin, estimated to cost £430,000, and a laboratory building for animal husbandry research at Alice Springs, estimated to cost £180,000.

The grant to the Papua and New Guinea Administration will this year be increased by £5,250,000 to £25,250,000. This is an increase of a full 25 per cent, in the funds made available to the Territory. It is the highest proportionate increase of any major item in the Budget. It will enable a further significant advance to be made in Territory development, especially by providing more houses, schools and hospitals, and a large increase in the personnel required to staff them. It provides further evidence of the determination of the Government to achieve the fastest practicable rate of progress in that region. I may recall that in the Budget of 1949-50, the last Budget prior to this Government taking office, the grant for Papua and New Guinea was only £4,200,000. Thus, we have provided over the years for a six-fold increase.

National Materials Handling Bureau

We have made a decision to constitute in the Department of National Development a National Materials Handling Bureau. This is of a small order financially, but it is likely to contribute usefully towards efficiency and reduction of costs in transportation. The existing Materials Handling Branch of that department will be taken over and strengthened. It is envisaged that the new bureau will be a permanent co-ordinating authority for materials handling practices. Tt will expand existing research, advisory and administrative services to cater for industry as well as the armed services and government departments. Funds will be provided to the bureau up to a maximum of £60,000 a year. I may say that the decision to establish the bureau follows upon a recommendation to the Government by the Export Development Council.

page 14

EXPENDITURE ESTIMATES. 1963-1964

Total Commonwealth expenditure for all purposes in 1963-64 is estimated to be £2,280,700,000, an increase of £197,300,000 over expenditure in 1962-63. Expenditure on items usually charged to the Consolidated Revenue Fund is estimated to be £1,912,800,000, an increase over last year of £174,600,000. I shall refer here only to the major items in this total. Details of estimated expenditures are set out and explained in Statement No. 3 attached to the Budget Speech. With the concurrence of honorable members, I shall incorporate in “ Hansard “ this statement and others to which I shall refer in the course of my speech.

Defence

The amount to be provided for defence is £251,671,000 which, after allowing for the effect of certain accounting changes, represents an increase of £30,300,000 over expenditure in 1962-63. As honorable members will be aware from statements already published by the Government, there will be steep increases year by year over the period of the new defence programme.

Here again I may point to a vast increase in the commitments undertaken by this Government over the course of its administration. In the Budget of 1949-50 expenditure on Defence Services was approximately £54,000,000 so that, in respect of this vital item, the annual financial provision has shown almost a fivefold increase.

The Prime Minister announced on 22nd May that there is to be a large expansion in the three armed services, a speeding up of their re-equipment and further development of their strategic and tactical mobility. These measures follow upon a full review of developments in South-East Asia in the light of our treaty arrangements. They have particular reference to the security of Australia itself and of Papua and New Guinea. The scale of our expenditure on defence will progressively increase over the next few years as strengths build up and new equipment comes to hand.

Social Services

In the field of social services, the Government proposes some major additions to benefits now available. Each year, of course, we make a complete review of the field of social service benefits and in this we take account of the many representations that come to us not only from members on both sides of the House but from the many people and organizations who have an interest in this subject. It is always a matter of deciding what changes in benefits will, under prevailing circumstances, do most to provide justice between various classes of beneficiaries and promote maximum social welfare.

This year we propose an important innovation, which experience has demonstrated to be most desirable. We are providing a new standard rate of pension for single age and invalid pensioners. By adding 10s. per week to their pension, we are providing that a new standard rate of £5 15s. a week will be paid to single age and invalid pensioners. That standard rate will also be paid to widow pensioners with one or more children. Pensioners whose spouses do not receive a pension or allowance will count as single persons for the purpose of the increase, lt is estimated by the Department of Social Services that approximately two-thirds of existing pensioners - some 516,000 out of a total of 786,000 pensioners - will be eligible for this new benefit. Of course, those not immediately eligible will know that this provision exists should they themselves ever be in a corresponding position.

Next, in addition to the new standard rate of £5 15s. a week, widow pensioners with one or more children will receive a further £2 a week by way of a mother’s allowance, and will be paid an allowance of 15s. a week for their eldest or only child. All civilian widows with one or more children will, through these measures, receive an increase of £3 a week in the pensions now available to them. I am sure all sections of the House will welcome those very desirable provisions.

Mr HAROLD HOLT:
LP

– The total payment for a widow with one child will be £8 10s. a week at the new standard rate plus allowances and will be increased by 15s. a week for each child after the first. Widows without children will receive an increase of 10s. a week, which will bring their rate to £5 2s. 6d. a week. Really, Mr. Deputy Speaker, I think the Leader of the Opposition (Mr. Calwell) thinks he invented Father Christmas judging by the way he has interjected in connexion with some of these concessions. There are matters in this Budget which have been the subject of representation from all sections of this House over a period of years, and it is with pride and satisfaction that this Government claims that it has created in Australia a state of affairs that enables us to make these concessions in this Budget.

Mr Calwell:

– You read my policy speech.

Mr HAROLD HOLT:

– I also read what you had to say about this Budget and you were as bad a prophet on that as you are on most things.

Supplementary assistance on the present basis will continue to be paid to qualified pensioners. The combined pensions payable to a married couple, both pensioners, will remain at £10 10s. a week. The wife’s allowance payable to the wife of an invalid or a permanently incapacitated age pensioner will be increased by 12s. 6d., the new rate being £3 a week. The increase in pension for each child of these pensioners after the first will be raised to 15s. a week instead of 10s. as at present.

Payments at the rate of 15s. a week will be made to invalid and permanently incapacitated pensioners and to widows in respect of children undergoing full-time education up to the end of the year in which such children attain the age of eighteen years. At present such payments cease when the child attains the age of sixteen years. The total additional COSt of these pensions and allowances is estimated at £17,755,000 for a full year and £11,435,000 in 1963-64.

Another proposal which, I am sure, will give pleasure to members in all sections of the House is that the Government will legislate to enable the Commonwealth to make subsidies, on a £2 for £1 basis, to churches and approved voluntary welfare organizations towards the provision of accommodation for disabled persons working in a sheltered workshop so that they may reside near their place of employment. It is not known what amount will be sought by way of subsidies in 1963-64 but grants will be made to all organizations that satisfy the requirements. A sum of £150,000 has been allocated for the purpose.

Repatriation Benefits

The Government has also, in accordance with its practice each year, reviewed repatriation benefits and here also it has some important proposals to make. The special fT.P.I.) rate war pension is to be increased by 10s. from £13 5s. to £13 15s. per week. The domestic allowance payable to war widows who are over 50 years of age, are permanently unemployable, or have a child under the age of sixteen years, or over that age but undergoing approved education, is to be increased by 7s. 6d. from £3 2s. 6d. to £3 10s. per week. There is to be an overall increase of 15 per cent, in the rates of educational allowances payable in respect of children under the Soldiers’ Children Education Scheme other than professional students.

There will be increases for certain service pensioners, consequent upon increases approved for social service pensioners. The “ single “ member service pensioner is to receive an increase of 10s. per week from £5 5s. to £5 15s. “Member” service pensioners who are permanently unemployable and who have children are to receive an increase in their service pension of 5s. per week in respect of a second and each subsequent child. The service pension payable to a wife is also to be increased by 12s. 6d. from £2 7s. 6d. to £3 per week. These proposals are estimated to cost £2,173,000 in a full year and £1,581,000 in 1963-64.

Payments to the States.

Payments to the States this year are estimated to reach £448,925,000, an increase of £25,704,000 over last year. I think this great total emphasizes what I said earlier about the extent to which the Commonwealth is now providing for a wider range and better standard of services and facilities in our fast-growing community. The total includes, along with provision for many earlier-established commitments, provision for expenditure on the majority of the special development projects I mentioned earlier. We are again making an additional assistance grant to the States this year of £20,000,000 for expenditure on employment-giving activities. This £20,000,000 is included in the total I have mentioned. The amount provided last year for that purpose was £17,500,000.

I now mention the universities. The 1964-66 triennium for grants for the universities is at hand and the provision to be made for this will be a matter for consideration after the Australian Universities Commission has reported. Provision for Commonwealth open entrance scholarships will be reviewed at the same time.

Capital Works and Services

Total expenditure on capital works and services is expected to be £195,791,000, an increase over last year of £16,232-,000. Within this total, an amount of £13,100;000 on account of the Snowy Mountains Hydro-electric Authority will be charged to Loan Fund. There it will be financed from drawings against the 100,000,000 dollar loan raised in 1962 from the International Bank for Reconstruction and Development.

Departmental Expenditure

The large range of items which come under the heading of Departmental Expenditure is estimated to total £177,649,000. The apparent increase of £26,700,000 over expenditure last year is partly the result of accounting changes and it also reflects the recent increases in wage and salary margins. These increases also affect, in particular, expenditure on Defence Services and Business Undertakings. On the best estimate that can be made, the cost to the Budget this year of margins increases so far granted will be of the order of £13,600,000.

Defence Forces Retirement Benefits and Superannuation of Commonwealth Public Servants

The Government has again given careful thought to the position of persons receiving pensions under these schemes. Many of these pensions are being paid to or in respect of persons who retired from the Commonwealth’s service many years ago. The real value of their pensions has been materially affected by changing conditions since then and, in recognition of this, the level of the earlier pensions has been increased on several previous occasions. The Government now proposes to provide further relief by bringing the Consolidated Revenue share of these pensions up to a level comparable with what would have been payable by the Commonwealth had the pensions been determined under the scale set out in the Superannuation Act 1959 and applied to the level of salaries that reflected the marginal increases of 1959. The cost of these increases is estimated to be £1,088,000 for Superannuation Act pensioners and £315,000 for

Defence Forces Retirement Act pensioners in 1963-64, and lesser amounts in succeeding years.

The Government will also bring down legislation to correct the pattern of entitlements to contribute, so that the ratios of pension to salary that were adopted for contributors in the 1959 legislation will be restored and preserved in the future. The opportunity will be taken at the same time to modify what we regard as an over-abrupt tapering of the entitlements to contribute, which commences to operate at salaries above the lower middle ranges.

I interpose here a reference to the Budget documents.

Budget Documents

At this point, I might mention that, following the amendments to Standing Orders, the “Estimates of Receipts and Expenditure “ no longer appear in that form. In addition, the papers issued in former years under the title of “ The Budget “ have been discontinued. An explanatory memorandum on the new form of the documents is being distributed to members.

Other Commitments

Over and above those expenditures which we normally meet from Consolidated Revenue, there are the Loan Council borrowing programmes for works and housing in 1963-64, which, subject to the usual conditions, we have agreed to support. The amount is £272,000,000 of which it is estimated” that £5,000,000 will be met from State domestic raisings. Chargeable to Loan Fund also are expenditures on war service land settlement, estimated to be £4,225,000, and on the Mount Isa railway project, for which £6,700,000 is being provided. Redemptions of debt this year are estimated at about £90,000,000 which is approximately the same as in 1962-63. Hence, so far as we can at present see, the total expenditures for which finance will have to be found in 1963-64 add up to £2,280,700,000. I turn now to the large question of how a sum of that magnitude can or should be raised.

page 17

REVENUE ESTIMATES, 1963-64

Taking taxation as it stands, we estimate that receipts from that and all other sources except borrowings in 1963-64 would amount to £1,935,000,000, which is £152,700,000 more than was raised from those sources last year.

Taxation

A number of factors will help to increase taxation revenues in the current financial year - the strong rise in business incomes and in rural incomes last year, the expected rise in wage and salary earnings through this year and also the rising trend in sales and imports of goods subject to tax. On the other hand, tax revenues are now bearing the full cost of the major concessions granted in 1961-62 - such as the rebate of ls. in the £1 on individual income tax, the investment allowance on plant for use in manufacturing and the sales tax reductions on household equipment and motor vehicles. These items are estimated to be costing the Budget currently about £80,000,000 a year. Nevertheless, it is expected that, without any further concessions, taxation revenue this year would show an increase of £132,000,000 over that of 1962-63.

We have, I may say, gone very thoroughly into the whole question of what should be done about taxation under present circumstances. We have looked at it from the standpoint of the economy and its prospects, the trend of our expenditure commitments, the prospects of borrowing not only in this year but thereafter, and the likely future yield of our tax system, affected as it has been by the quite large concessions made in the past couple of years. We have reached two broad conclusions - one that there is no present justification for sweeping tax deductions to stimulate spending or to encourage investment, the other that it would be courting later trouble if we were to cut drastically into the sources from which our main revenues are drawn. Our annual Budget now has to provide for expenditures already about £2,300,000,000 and rising fast. Nevertheless, it has seemed possible to make a considerable number of concessions which will correct anomalies in the present tax system, or give relief in quarters where taxation now bears rather heavily, or provide some aid and encouragement to particular branches of production and trade.

Sales Tax

It has been represented from all parts of the House that the imposition of sales tax on foodstuffs both adds to the cost of living and discourages the consumption of foodstuffs grown by our primary producers’. For many years past, of course, most foodstuffs have been exempt from sales tax. It has now been decided, however, to remove completely sales tax from all foodstuffs remaining subject to that tax. The proposed exemption will not, however, extend to confectionery, carbonated beverages and aerated waters. It will certainly apply to dried fruits and to the children’s ice-cream. There will be a cost to revenue of £11,500,000 in a full year and £9,000,000 in 1963-64.

A number of other sales tax reductions and exemptions are proposed. Details of these will be made available in the legislation which I will introduce immediately after bringing down the Budget. Amongst the more important are the exemptions proposed for polythene, metallic foil and metal materials used in manufacturing or building construction, and a reduction from 12i per cent, to 2i per cent in the rate payable on household goods of silver-plated ware. This 2i per cent, is the rate now generally applying on household equipment. If the honorable gentleman opposite who is interjecting had followed the sales tax concessions made earlier, he would have known that we reduced to 2i per cent, the rate of sales tax on household furniture generally. This proposal in relation to silver-plated articles will bring those articles into line with other household articles.

Income Tax

As to income tax, the Government has had before it for some time the report of the Commonwealth Committee on Taxation which contains a number of important recommendations for changes in the income tax law. Some of these recommendations have far-reaching importance and they involve most complex issues. A great deal of study has been given to them and this work is continuing. The Government has, however, decided to adopt now a considerable number of those recommendations of the Commonwealth Committee on Taxation which the committee thought would simplify the existing law or remove vexatious anomalies. 1 propose to refer here only to the more important recommendations which the Government has decided to implement at this stage. A full list of the proposals to be adopted is contained in an addendum to Statement No. 3 attached to the Budget Speech.

Minimum Taxable Income

One recommendation of the committee to be adopted is that the minimum income subject to tax be increased to £209 from the present figure of £105. This will reduce the number of persons required to pay income tax and, in consequence, make possible some savings in the administrative costs of the taxation office.

Separate Net Income

Individuals maintaining a dependant of any class will benefit from a proposal to apply a uniform test as to whether the separate net income of that dependant should reduce the amount of the deduction otherwise allowable. In future, the allowance for a dependant will not be reduced unless a dependant’s separate net income is more than £65. Where the separate net income exceeds £65, the allowance will be reduced by £1 for every £1 by which the separate net income exceeds £65. The cost to revenue of this and the preceding proposal is estimated to be £960,000 in a full year and £305,000 in 1963-64.

Another proposal relating to separate net income will, I am confident, meet with the approval of parents of student children. Under the existing law the maintenance deduction for a student child is reduced by the amount of any government assistance received towards the education of that child. It has now been decided to adopt the recommendation of the Commonwealth Committee on Taxation that government assistance towards the education of a student child, in the form of payment of fees and similar expenses, should not be taken into account in determining the deduction available for the maintenance of a child. Government assistance towards the maintenance of the child will be regarded as the child’s separate net income which, however, may now be as much as £65 before affecting the amount of the deduction allowable to the parent.

page 19

EDUCATION EXPENSES

In accordance with its policy of assisting education generally the Government has decided that the maximum allowance for education expenses should be raised from £100 to £150.

page 19

MEDICAL EXPENSES

It is proposed that, in the case of medical expenses, the present maximum limit of £150 per person should be removed entirely. The existence of a limit undoubtedly works to the detriment of a taxpayer when he is in most need of assistance - that is, when he is faced with exceptionally high medical costs for himself or members of his family.

page 19

AGE ALLOWANCE

In conformity with the Government’s proposal to increase by 10s. per week the age pension for single persons, it is proposed that the age allowance exemption for aged persons not assessed as married couples be increased by £26. The new exemption for these aged persons will therefore be £481, which is equal to the sum of the proposed age pension for a single person and the permissible income. In addition, the Government has decided to adopt the recommendation of the Commonwealth committee to extend the married couples provisions to an aged person whose spouse is not of pensionable age. In consequence, an aged person will be exempt from tax, regardless of the age of the spouse, if the combined net incomes of husband and wife do not exceed £910.

page 19

BUSINESS DEDUCTIONS

A further group of recommendations of the committee which the Government proposes to adopt will, I believe, give welcome relief to a considerable number of persons engaged in business. The most important of these is that a fourth basis of valuation of trading stock be introduced. This new basis will permit taxpayers to adopt an alternative basis of valuation for certain trading stock, subject to the Commissioner of Taxation being satisfied that there are circumstances which justify such a course.

A number of other amendments are proposed which will permit taxpayers to deduct certain business expenses - generally of small amounts - which would otherwise be subject to inquiry or not deductible at all because they would rank as capital expenditure. The cost to revenue of all these proposals is estimated to be £2,440,000 in a full year but there will be no cost in 1963-64.

Other recommendations to be adopted include the treatment of forestry, including the extraction of timber, as primary production for income tax purposes, the allowance of deductions in respect of mill buildings and employees’ houses in the logging area and the allowance in the year of expenditure of the cost incurred by primary producers in erecting fences for animal pest prevention purposes and for control of saltaffected land.

page 20

PRIMARY PRODUCERS

I have mentioned elsewhere our intention to provide an investment allowance on new plant and equipment purchased by primary producers. A second proposal which, though not of wide scope, will be of considerable importance to the people affected, is that primary producers should be allowed to deduct each year one-tenth of the cost of contributions made for the extension of telephone services to property used for the purposes of primary production. In the past these contributions have not been deductible either by way of depreciation or outright deduction from income.

page 20

PRIVATE COMPANIES

The Government has given consideration to the amounts which, under the present law, private companies are allowed to retain free of undistributed income tax. This was a matter which the Commonwealth committee examined and on which it made a recommendation. The Government is satisfied that some increase in existing retention allowances is justified, so that private companies will be encouraged to retain a greater proportion of their income to finance expansion. It is accordingly proposed that the retention allowances for income other than property income should be increased to 50 per cent, of the first £5,000 of distributable income - broadly, the taxable income less primary tax payable - 45 per cent, of the next £5.000 of distributable income and 40 per cent, of the balance. Because dividends declared by private companies up to ten months after the close of their year of income may be taken into account in determining their liability to undistributed profits tax, it is proposed that this increase should apply in respect of 1962-63 incomes. The cost to revenue of the proposal is estimated at £2,500,000 in a full year and £1,500,000 in 1963-64.

It is also intended to adopt a recommendation of the Commonwealth committee which would extend in certain circumstances and subject to the agreement of the commissioner the prescribed period for payment of dividends by a private company. It is proposed that, apart from the increase in retention allowances and the 20 per cent, investment allowance on farm plant and equipment, the projected amendments to the income tax law should take effect from the commencement of the 1963-64 income year.

Estate Duty

In respect of estate duty, the Government had before it a number of representations - in particular to the effect that a rebate should be provided, along the lines of Victorian and South Australian legislation, in respect of agricultural land included in deceased estates. However, after going into the matter fully, the Government reached the view that, to preserve equity between all classes of taxpayers and yet go a considerable way to serve the purposes sought by these representations, the best thing to do is to raise further the exemption limits provided under the act. It is therefore proposed to double the existing exemptions and to shade them out more slowly than at present. In consequence, where an estate of a person who dies after the authorizing legislation has been assented to, is of a value of £10,000 or less and passes to a widow, widower, children or grandchildren, no duty will be payable. In other cases, duty will not be payable unless the value of the estate exceeds £5,000. In addition, the rate at which these exemptions will diminish is to be reduced. They will, in future, be reduced by £1 for every £4 - instead of the existing £1 for every £3 - by which the value of the estate exceeds the appropriate exemption.

Total Taxation Concessions

Further details of all these concessions are given in Statement No. 3 and addendum attached to the speech. In total they are expected to have a cost to revenue of £12.800.000 in 1963-64 and £27,600,000 in a full year.

Air Navigation Charges

In accordance with its policy of seeking progressively to recover from air transport operators the cost of maintaining and operating airport and airway facilities, the Government has decided that the present rates of air navigation charges payable by all classes of users will be increased by 10 per cent. This increase will take effect from 1st January, 1964.

Other Receipts

Other receipts include the business undertakings, from which we expect to get an additional £10,200,000 of revenue this year, and the National Debt Sinking Fund of which the receipts are expected to be about £87,000,000, approximately £5,300,000 more than in 1962-63. Thus, after allowing for the proposed tax concessions, total receipts other than from borrowings are estimated to be £1,922,300,000, and the short-fall on estimated expenditure commitments becomes £358,400,000.

page 21

BORROWING POSSIBILITIES- 1963-64

This amount of £358,400,000 will have to be obtained from borrowings in one form or another. In 1962-63 we succeeded in raising from loans in Australia and abroad a total of £323,000,000. This was far more than had ever been raised before in a peace year and was £108,000,000 more than we had reckoned on being able to borrow at the time of the 1962-63 Budget.

Without doubt, conditions last year were exceptionally favorable for loan raising within Australia and also abroad, where good fortune certainly had a part. On the domestic market, the basic factor was probably the great increase in the supply of money available to the public in the shape of bank deposits and cash. Over the year it rose by 8.6 per cent, and this followed an increase of 7.5 per cent, in 1961-62. Savings bank deposits alone rose by some £235,000.000. It was also an important fact that when, in the second half of the year, expectations of a fall in the long-term bond rate gained currency, some investors sought to put as much money as they could into securities at the prevailing rates. There was throughout the year a gratifying degree of support for special bonds, a net total of £31,000,000 being subscribed to these securities, and that trend, I am glad to say, has continued to be evident in this financial year. Overseas, we were able to raise three loans in New York, which was quite unprecedented, and also a cash loan in London which had not seemed possible at the time of the Budget.

As to prospects in 1963-64 it is, frankly, not possible to estimate with any certainty how much may be raised from public loans either in Australia or overseas. At home we can reasonably suppose that monetary conditions will continue liquid throughout the year. It is likely too that, while spending by the public will increase, the rate of savings will continue high. On the other hand, bond yields are now appreciably lower than last year and the competition of other securities could be stronger in the period ahead than it has been for some time past.

Overseas prospects for borrowing are distinctly poorer than .they were last year when, as I mentioned earlier, we obtained a total of £66,000,000 from various sources. Apart from anything else, the proposed interest equalization tax on new issues of foreign securities recently announced by the United States Administration gives rise to considerable doubt as to whether we will be able this year to raise further public loans in New York. Other sources do not at the moment look particularly promising. We will, however, be able to draw further upon the outstanding balance of the International Bank loan for the Snowy Mountains authority.

Very tentatively - indeed I might say even speculatively - I am suggesting a figure of £300,000,000 for loan raisings in 1963-64. I do this with a full recognition that the actual result could differ from that figure by a considerable margin one way or the other and for reasons which, at the present time, it is quite impossible to foresee. It is not an unusual practice that is being adopted here. I do not know of any major country overseas which attempts to announce in advance what it is likely to raise by way of public borrowing in any particular year. It is not practicable to predict that with any accuracy.

If that figure in fact proved to be somewhere near the mark, there would remain a gap of some £58,400,000 between our expenditure commitments on the one hand and the total of revenues and loan funds on the other. This gap would have to be bridged by temporary borrowings.

On present estimates, moreover, expenditure of the kind usually charged to the Consolidated Revenue Fund will exceed the revenue of that fund by £62,500,000. To avoid a deficit in that fund, I am proposing that expenditure on Defence Services to the amount of £62,500,000 should be charged to the Loan Fund. It will be necessary to seek borrowing authority for that purpose, and it is therefore proposed to ask Parliament to authorize borrowings of £62,500,000 to meet expenditure on Defence Services.

page 22

EFFECT OF BUDGET

In shaping the Budget we have necessarily given a lot of thought to the probable requirements of the economy over the next twelve months or so, and to the effect that budgetary measures might be expected to have on the general trend of activity.

We are quite clear that a good rate of expansion can be kept up through 1963-64 without causing undue difficulties. On the labour side there are some rather serious shortages of some classes of skilled people but the influx of skilled migrants may help to relieve these. With a rising demand for labour, it ought to be possible to reduce substantially further the number of persons registered as seeking jobs. Meanwhile there will be a good deal of migrant labour coming in and, at the turn of the year, there is likely to be about the same number of young people leaving school to join the work force as in recent years. There is still some unused plant capacity in some industries and, of course, further capacity is being added in other industries. It promises to be a good production year again in rural industry and, while imports are likely to rise as local activity grows, we should have little to worry about on external account if export prices hold at anywhere near their present levels

At the same time it is also clear that expenditure in most, if not all, of its main branches is likely to increase fairly strongly and so provide a strengthening demand for the products of industry. Business generally is now moving along under that most reliable of all stimuli - an upward trend of profits.

As it has been shaped, the Budget should undoubtedly have a strong expansive effect. Broadly, this will come about in two main ways. In the first place, it provides for a very considerable increase in expenditures, direct and indirect, on goods and services - a much greater increase in fact than has occurred in recent years. In the second place, the amount taken back from the community by way of taxes and charges, though larger than last year, will not increase by as much as expenditures. The gap to be financed from borrowings will thus widen.

To illustrate this, I have had the Budget estimates for this year set out on the national accounting basis used by the Commonwealth Statistician in the annual White Paper on National Income and Expenditure. They are compared there on the same basis with the Budget results for several recent years. The tabulation is shown, with the necessary technical explanations, in Statement No. 6 attached to the speech, and I suggest that it will repay some study, lt shows, amongst other things, a progressive widening over recent years of the excess of expenditure over revenues, and hence an increased reliance on borrowings to finance expenditures. Incidentally, it also shows that, contrary to much that has been said, the Budget of last year had, in these terms, a quite strong expansionary influence.

This amounts to saying that we think the Budget will play a full part in promoting an adequate rise in the level of activity through the current financial year. But that is far from being the sole purpose we have sought in framing it. More and more these days we have to think ahead and act for the future and that necessity, more perhaps than anything else, has shaped the budgetary scheme I have outlined and many of the larger proposals comprised in it - the lift :n the immigration target, the developmental projects, the bounties and the tax concessions aimed at improving productivity. Our economy is moving strongly onward. Rarely a month passes that we do not hear of some great new possibility that has opened, some large new venture planned or launched. Our object is to keep the economy moving strongly onward without departing from its steady course.

STATEMENT No. 1. - BUDGET RESULTS, 1962-63.

PART A.- SUMMARY OF BUDGET RESULTS, 1962-63.

The Budget result for 1962-63 is compared in the following table with the result for the preceding financial year: - Total expenditure excluding redemptions increased by £100,887,000 in 1962-63 compared with the corresponding figure for 1961-62. As total receipts other than borrowings increased by £62,053,000 over the corresponding figure for 1961-62, the excess of those expenditures over receipts increased by £38,834,000 in 1962-63. The excess of expenditures other than redemptions over receipts excluding loan raisings in 1962-63 was £211,460,000. Allowing for redemptions, the excess of total commitments over receipts was £301,013,000 representing the total call on borrowings in 1962-63. The corresponding amount in 1961-62 was £267,224,000. In 1962-63 the total amount raised by way of loans in Australia and overseas amounted to £317,072,000 which exceeded the total call on borrowings by £16,050,900. Of this amount, £15,510,000 was applied in reduction of temporary borrowings outstanding and the remainder of £549,000 was added to the Commonwealth's cash balances. Expenditure ordinarily charged to the Consolidated Revenue Fund, including £66,070,000 of expenditure on Defence Services and £13,100,000 of expenditure on the Snowy Mountains Hydroelectric Scheme charged to the Loan Fund, but excluding the payment to the Loan Consolidation and Investment Reserve, totalled £1,738,178,000 in 1962-63. This was £95,150,000 greater than in 1961-62. Receipts of the Consolidated Revenue Fund totalled £1,685,386,000 or £43,844,000 more than in 1961-62. After charging £66,070,000 of expenditure on Defence Services and £13,100,000 of expenditure on the -Snowy Mountains Hydroelectric Scheme to the Loan Fund, the amount available for payment to the Loan Consolidation and Investment Reserve was £26,378,000. Details of the Consolidated Revenue Fund results are given in Part B of this Statement. At its June, 1962 meeting, the Loan Council agreed to a borrowing programme of which £250,000,000 was for State works and housing in 1962-63. This amount was increased by £5,000,000 to £255,000,000 at the February, 1963 meeting of the Loan Council. As State domestic raisings amounted to £5,882,000, the amount to be met from Commonwealth borrowings in 1962-63 was £249,118,000 or £4,498,000 more than the corresponding figure for 1961-62. Cash proceeds during the year from loans raised in Australia and overseas totalled £302,836,000. Of these proceeds, £31,957,000 was applied to meet redemptions of maturing securities and £249,118,000 was used for State works and housing. In addition, an amount of £607,000 was applied to finance payments to the States for War Service Land Settlement. The remainder of the amount raised was added to Loan Fund balances. Redemptions of maturing securities, repayments of loans from the International Bank, market repurchases and other expenditures from the National Debt Sinking Fund totalled £57,596,000. As securities totalling £31,957,000 were redeemed from loan proceeds, total redemptions for the year were £89,553,000. This was £5,045.000 less than in 1961-62. The income of the National Debt Sinking Fund in 1962-63 was £81,818,000 or £5,167,000 more than in 1961-62. Receipts from the International Bank loan for the Snowy Mountains Hydro-electric Scheme totalled £14,236,000. Expenditure on the Scheme charged to the Loan Fund in 1962-63 was £13,100,000. The difference between receipts and expenditures arose from differences in timing between expenditures on the Scheme and drawings against the loan. Advances to Queensland for the Mount Isa Railway Project amounted to £5,959,000 in 1962-63, which compares with £3,750,000 advanced to the State in 1961-62. Further details of the various loan transactions of the Commonwealth during 1962-63 are given in Part C of this Statement. The manner in which the various expenditures were financed in 1962-63 may be summarized as follows: - Of the Budget surplus, £15,510,000 was applied Bank and £549,000 was added to the cash balances to redeem Treasury Bills on issue to the Central of the Commonwealth. PART B- CONSOLIDATED REVENUE FUND RESULTS, 1962-63. {:#subdebate-16-0} #### Revenue Total revenue collected in 1962-63 amounted to £1,685,386,000 or £19,954,000 more than the Budget estimate; revenue from taxation amounted to £1,430,837,000, or £12,837,000 more than the Budget estimate. Customs revenue was £9,070,000 greater than the Budget estimate reflecting a higher level of imports than had been expected combined with an increase in the proportion of imports subject to higher rates of duty. Excise collections were £1,625,000 lower than the Budget estimate. Collections from clearances of beer were higher than had been expected, but this was more than offset by collections from clearances of cigarettes, cigars, tobacco and motor spirit which were lower than anticipated. Sales Tax collections exceeded the Budget estimate by £1,533,000 principally because sales of passenger motor vehicles were higher than expected. Income Tax collections from individuals exceeded the Budget estimate by £3,712,000. Collections from " pay-as-you-earn " were lower than estimated, but the shortfall was more than offset by collections on assessments which were higher than estimated. Collections of Income Tax from companies were £2,086,000 less than the Budget estimate. The rate of collection of tax on current assessments was slightly lower than that upon which the Budget estimate had been based. Collections of Dividend (Withholding) Tax exceeded the Budget estimate by £1,965,000. The amount of dividends paid by Australian companies to non-residents was higher than anticipated. Collections of Pay-roll Tax were £745,000 less than the Budget estimate. Wage and salary payments in 1962-63 were lower than expected and in addition rebates of Pay-roll Tax under the export incentive scheme were greater than had been estimated at the time of the Budget. Collections of Estate Duty and Gift Duty exceeded the Budget estimates by £850,000 and £164,000 respectively. The average values of estates and gifts assessed to duty were higher than expected. Total revenue from Business Undertakings was £171,200,000 or £3,780,000 more than the Budget estimate. Receipts from the Commonwealth Railways and the Post Office exceeded the Budget estimates by £317,000 and £3,689,000 respectively, while Broadcasting and Television revenue was £226,000 less than estimated because the increase in television viewers' licences was smaller than had been expected. Revenue from Territories was £1,181,000 greater than the Budget estimate. Receipts from premiums on sales of leases in the Australian Capital Territory were £940,000 greater and proceeds from sales of houses and repayments of housing loans were £126,000 (greater than the Budget estimates. Other Revenue exceeded the Budget estimate by £2,156,000. Repayments of unrequired balances from Trust Accounts exceeded the estimates by £1,100,000; interest and rent on War Service Homes amounted to £13,027,000 or £284,000 more than the estimate; interest on investments of the Trust Fund at £1,033,000 was £293,000 greater. Other receipts to exceed the estimates were Civil Aviation £3,264,000 (an increase of £489,000); Interior £2,852,000 (an increase of £630,000); Defence £4,409,000 an increase of £250,000); AttorneyGeneral's £1,124,000 (an increase of £197,000); and Primary Industry £6,530,000 (an increase of £262,000). The largest shortfall as compared with the estimates was £1,733,000 in the payment to Consolidated Revenue Fund from the profits of the Reserve Bank of Australia, mainly because profits of the Note Issue Department of the Bank were lower than had been estimated. {:#subdebate-16-1} #### Expenditure Excluding the payment to the Loan Consolidation and Investment Reserve, expenditure charged to the Consolidated Revenue Fund totalled £1,659,008,000 in 1962-63 which was £44,576,000 greater than the Budget estimate. However, expenditure on Defence Services charged to the Loan Fund amounted to £66,070,000 in 1962-63 compared with the Budget estimate of £98,283,000. In addition £13,100,000 of capital expenditure on the Snowy Mountains Hydro-electric Authority - the amount estimated in the Budget - was charged to the Loan Fund. Total expenditure, including these amounts charged to Loan Fund but excluding the payment to the Loan Consolidation and Investment Reserve, was £1,738,178,000 in 1962-63, or £12,363,000 greater than had been estimated in the Budget. Expenditure on Defence Services (including the amount charged to Loan Fund) was £4,054,000 more than had been estimated. Expenditure on purchase and manufacture of aircraft for the R.A.N. and R.A.A.F. was £2,430,000 higher than had been estimated. Expenditure on arms and equipment for the A.M.F. exceeded the Budget estimate by £602,000. Aid to India, for which no provision had been made in the Budget, amounted to £1,446,000. Expenditure on economic and defence support assistance to SEATO countries exceeded the Budget provision by £248,000. Shortfalls in expenditure compared with the estimates included £565,000 on special research projects by the Department of Supply and £233,000 on Navy research and development. The payment to the National Welfare Fund was £8,280,000 less than the Budget estimate. Shortfalls in estimated expenditure occurred in respect of Age and Invalid Pensions to the extent of £4,246,000; Pharmaceutical Benefits, £2,698,000; Widows' Pensions, £723,000; Medical Benefits for Pensioners, £623,000; Child Endowment, £590,000; Hospital Benefits, £455,000; milk for school childdren, £178,000; Medical Benefits, £163,000. However, expenditure on Unemployment and Sickness Benefits exceeded the Budget estimate by £1,657,000/ Debt charges were £195,000 less than had been estimated. Other Special Appropriations were £14,171,000 more than the Budget estimate. The major variations were in respect of a payment of £11,556,000 to the International Monetary Fund, which increased Australia's gold subscription to the I.M.F., and the release of £2,672,000 in respect of the 18 per cent, portion of Australia's subscription to the International Bank. The Budget had made no provision for these payments. In addition, the payment to the Internationa] Development Association was £646,000 more than expected and payments of the Sulphuric Acid Bounty were £154,000 more than the Budget estimate. Payments for assistance to the gold mining industry and in respect of the Tractor Bouny fell short of the estimates by £209,000 and £137,000, respectively, ar.d payments under the Wheat Prices Stabilization Scheme were £212,000 less than expected because of an increase during the year in the export price of wheat. Departmental Expenditure was £2,455,000 greater than expected. The major variations were additional expenditure of £330,000 for International Development and Relief; £251,000 for the Commonwealth Scholarship Scheme; a total of £400,000 for salaries in the Department of Civil Aviation, (he Taxation Branch and the Bureau of Census and Statistics; £353,000 by the Department of Social Services, representing additional expenditure of £186,000 on the provision of homes for the aged and £167,000 for commission on benefit payments made by banks and post offices. Expenditure by the Deparment of Immigration in respect of British migration was £885,000 greater than the Budget estimate, but this was partly offset by shortfalls in expenditure in respect of German, Dutch and Italian migration. Expenditure on War and Repatriation Services exceeded the Budget estimate by £515,000. Expenditure on medical and hospital treatment and miscellaneous benfis was £852,000 greater than had been estimated. Expenditure on miscellaneous repatriation services was £495,000 more than the estimate, mainly because recoveries from Other Administrations for supplies and services were less than had been anticipated. Expenditure on War and Service Pensions and Allowances was £908,000 less than the estimate. Expenditure by Business Undertakings exceeded the Budget estimate by £256,000. Expenditure by Commonwealth Railways was £122,000 less than estimated, while Post Office expenditure was £443,000 more than the Budget estimate, mainly because of the effects of the Engineers' Award on wage and salary payments and additional expenditure associated with the restoration of services rendered inoperative by flood and storm damage. Expenditure on Broadcasting and Television Services was £65,000 less than the Budget estimate. Expenditure on Territories was £333,000 below the Budget estimate. Under-expenditure occurred in the Northern Territory where there were shortfalls of £280,000 and £107,000 in expenditure on the welfare of wards and general services, respectively. Payments to or for the States exceeded the Budget estimate by £1,138,000. At the Loan Council meeting in February, 1963, the Commonwealth agreed to increase the non-repayable additional assistance grant to the States for employ ment-giving activities by £5,000,000 to a total of £17,500,000. The payment of this additional grant was authorized by the States Grants (Additional Assistance) Act 1963. The amount of financial assistance grants paid to the States in 1962-63 under the provisions of the States Grants Act was £"970,000 less than the Commonwealth Statistician's preliminary estimate of the grants which was the estimate included in the Budget. Payments to Queensland for brigalow lands development were £1,150,000 less than the amount provided in the Budget; payments s for beef cattle roads were £730,000 below the Budget estimate and contributions by the Commonwealth to capital expenditure oh mental institutions were £568,000 less than estimated. Expenditure on Capital Works and Services fell below the Budget estimate by £1,418,000. The main variations from the estimates were an increase of £2.500,000 for War Service Homes and under-expenditures of £2,137,000 in respect of payments under the Railway Agreement (Western Australia) Act 1961, of £1,784,000 in respect of the Snowy Mountains Hydro-electric Scheme and £550,000 in respect of the Postmaster-General's Department. The. amount paid to the Loan Consolidation and Investment Reserve was £26,378,000 or £24,622,000 less than estimated in the Budget. PART C- LOAN TRANSACTIONS, 1962-63. Loan Commitments, 1962-63. At its meeting in June, 1962, the Australian Loan Council approved a governmental borrowing programme of which £250,000,000 was for State works and housing purposes in 1962-63. The Commonwealth offered, subject to certain conditions, to make monthly advances to the States for the first six months of the year on the basis of the programme for works and housing, and indicated that it would then review the position. In February, 1963, the Loan Council approved an additional £5,000,000 for State works and housing purposes. In consequence, the allocation for these purposes was increased to £255,000,000. As State domestic raisings totalled £5,882,000, the amount for State works and housing to be met from Commonwealth borrowings was £-249,118,000. An amount of £607,000 was required to finance Commonwealth payments to the States for War Service Land Settlement, bringing the total amount required for these purposes to £249,725,000. Redemptions of maturing securities amounting to £31,957,000 were charged to the Loan Fund in 1962-63. In 1962-63, £13,100,000 of expenditure by the Snowy Mountains Hydro-electric Authority was charged to the Loan Fund in accordance with the Loan (International Bank for Reconstruction and Development) Act, 1962. The Commonwealth was also called upon to make advances totalling £5,959,000 to Queensland for the Mount Isa Railway Project, pursuant to the Railway Agreement (Queensland) Act 1961. The advances were made from Loan Fund, by drawing on a borrowing of £20,000,000 made for the purpose in 1959-60. Loan Raisings, 1962-63. During 1962-63 the Commonwealth issued two public cash loans in Australia, and three conversion offers to holders of maturing securities. After allowing for discounts in the issue price, total subscriptions to the cash loans, including advance subscriptions received before 1st July, 1962, were £206,622,000. Securities eligible for the three conversion offers amounted to £457,281,000. Of these, £388,982,000 were converted, £66,996,000 were redeemed and £1,303,000 were outstanding at 30th June, 1963. The issue of Special Bonds-- Series G was discontinued in January, 1963, and was followed by the issue of Special Bonds - Series H. In May, 1963, Series H Bonds were replaced by Series I Bonds. Proceeds of sales of Special Bonds during the year were £39,082,000 and redemptions amounted to £7,849,000. Net proceeds from Special Bonds during the year were thus £31,2-33,000. In addition, maturing Commonwealth Bonds and Inscribed Stock totalling £21,481,000 were converted into Special Bonds in 1962-63. During the year four cash loans and one refinancing loan were raised overseas. A cash loan issued in London (£stg. 12,000,000) and three cash loans issued in New York (U.S.$85,000,000) yielded £14,744,000 and £37,109,000, respectively, making a total of £51,853,000. The refinancing loan totalling £stg.l9,000,000 (£12,537,000) was issued in London to refinance in part £stg. 11,790,000 (£14,781,000) of maturing debt. The balance of £stg. 1,790,000 (£2,244,000) was redeemed by the National Debt Sinking Fund. In July, 1962, Treasury Notes were issued for the first time. They replaced Seasonal Treasury Notes which had been issued in the three previous financial years to moderate seasonal fluctuations in the liquidity of the banks and the public and also had a currency of 13 weeks. Whereas Seasonal Treasury Notes had been on issue until 31st March in each year, Treasury Notes were issued on a daily basis throughout the year. The amount of Treasury Notes outstanding reached a peak of £149,603,000 in February, 1963. On 30th June, 1963, the amount outstanding was £69,538,000. Details of public cash and conversion loans raised by the Commonwealth in Australia and overseas in 1962-63 (other than issues of Treasury Notes) are given in the following table: - The amount of £206,622,000 shown in the table above as the proceeds of the two public cash loans issued in Australia in 1962-63 differs from the actual cash receipts of £220,405,000 available during the year from public loans of this kind. The main reason is that cash receipts exclude advance subscriptions brought forward from the previous year, but include those received up to 30th June, 1963, in respect of the first cash loan to be issued in 1963-64. Cash receipts also take into account outstanding instalments received during the year from loans floated in previous years but are net of expenses incurred in raising loans. The actual cash receipts in 1962-63 from public loan raisings in Australia amounted to £251,481,000 including net cash proceeds of £31,076,000 from Special Bonds. The cash receipts available from public loans overseas totalled £51,355,000- which differs slightly from the proceeds figure because of net expenses met during the year. Cash receipts in 1962-63 from public loan raisings in Australia (including net cash proeeds of Special Bonds) and overseas therefore totalled £302,836,000. After applying £31,957,000 to meet redemptions charged to the Loan Fund in 1962-63 and £249,725,000 to meet commitments in respect of State works and housing payments to the States for War Service Land Settlement, an amount of £21,154,000 (including £5,000,000 for housing advances in 1963-64, £2,983,000 to finance payments to the States for War Service Land Settlement in future years and £43,000 to meet the cost cf redemptions of overdue securities which matured in February, 1963) was added to the balances of the Loan Fund. The amounts borrowed by the Commonwealth in 1962-63 and their application are summarized in the following table: - Drawings on the International Bank loan for the Snowy Mountains Hydro-electric Scheme totalled £14,236,000 in 1962-63. This was the first year in which drawings had been made against this loan and the drawings exceeded expenditure on the Scheme charged to the Loan Fund by £1,136,000, so that there was a corresponding increase in Loan Fund balances on this account. The difference between receipts and expenditures arose from differences in timing between expenditures on the Scheme and drawings against the loan. Three private loans were raised by the Commonwealth in New York for aircraft financing purposes during 1962-63. A loan of U.S.$4,600,000 (£2,067,000) was obtained from the Chase Manhattan Bank in August, 1962, on behalf of Qantas Empire Airways Ltd. Further loans were arranged with Morgan Guaranty Trust Company of New York on behalf of Trans-Australia Airlines and Qantas. The amounts of these loans were U.S.$1 1,000,000 (£4,900,000) and U.S.$9,000,000 (£4,000,000) respectively. These loans are to be drawn before 31st December, 964. During 1962-63, U.S.$5,850,000 (£2,627,000) was received as a result of drawings on these loans. These proceeds were made available in their entirety to Qantas and Trans-Australia Airlines. {: .page-start } page 30 {:#debate-17} ### REDEMPTIONS, 1962-63 It was estimated in the Budget that expenditure on redemptions of securities maturing during 1962-63, repayments of loans from the International Bank and market repurchases and other expenditures by the National Debt Sinking Fund would in total cost £106,000,000. The actual cost of these commitments was £89,553,000. Securities with a face value of £457,281,000 were offered for conversion in public loans in Australia during 1962-63 and of these £66,996,000 were redeemed. Loan proceeds were used to finance £31,957,000 of these redemptions, and the remaining £35,039,000 were financed from the National Debt Sinking Fund. A loan of£stg.l 1,790,000 matured in London, of which £stg. 10,000,000 was refinanced from a loan issued in July, 1962, and the balance was redeemed from the National Debt Sinking Fund at a cost of £2,244,000. Repayments of loans from the International Bank cost £8,289,000 (U.S.$18,553,000). In addition, the Sinking Fund expended £7,650,000 in Australia in 1962-63 on repurchases, repayments and other expenditures, and £4,374,000 on repurchases and redemptions overseas (principally repurchases on the New York market). The total amount expended by the Sinking Fund in 1962-63 was therefore £57,596,000, made up as follows: - Current receipts of the National Debt Sinking Fund during 1962-63 were £81,818,000. This was supplemented to the extent of £7,000,000 by the sale to the Loan Consolidation and Investment Reserve of securities held as investments by the Sinking Fund. As expenditure from the Sinking Fund totalled £57,596,000, there was an excess of receipts over expenditure in the National Debt Sinking Fund of £31,222,000. As is pointed out above, in addition to the debt redeemed by the Sinking Fund, £31,957,000 of redemptions in public conversion loans issued in Australia were met from cash proceeds of loans and £7,849,000 of redemptions of Special Bonds were met from the proceeds of Special Bonds subscribed during 1962-63. Inscribed Stock and Bonds on issue on account of the Commonwealth were also reduced by £77,410,000 (face value) through the operations of the Loan Consolidation and Investment Reserve, as a result of exchanges of medium and long term securities from its own portfolio for early maturing securities held elsewhere, which were then cancelled. An amount of £252,000 was paid from the Canadian Loan Trust Account for contractual repurchases of Commonwealth Bonds issued in Canada, as a result of which securities with a face value of Canadian $661,000 were repurchased and cancelled. These repurchases were additional to those made from the National Debt Sinking Fund recorded above. Chances in Amount of Government Securities on Issue - 30th June, 1962 to 30th June, 1963. *Australia.* The following table summarizes changes during 1962-63 in the amount of Government securities, other than Treasury Bills and Treasury Notes, on issue in Australia: - *Overseas.* The following table summarizes changes during 1962-63 in the amount of Government securities on issue overseas : - {: .page-start } page 32 {:#debate-18} ### STATEMENT No. 2. - SUMMARY OF BUDGET PROSPECTS, 1963-64 Total expenditure of the Commonwealth Government excluding redemptions is expected to increase by £196,884,000 to £2,190,746,000 in 1963-64. As total cash receipts other than loan raisings are estimated to increase by £139,935,000 to £1,922,337,000, it is estimated that the excess of these expenditures over receipts will increase by £56,949,000 in 1963-64. The amount of the estimated excess in 1963-64 is estimated to be £268,409,000. Allowing for redemptions, which are estimated to total £90,000,000 in 1963-64, the estimated excess of commitments over receipts is £358,409,000, representing the estimated total call on borrowings in 1963-64. The corresponding figure in 1962-63 was £301,013,000 so that the amount which it is estimated- the Commonwealth will have to borrow in 1963-64 is £57,396,000 greater than the total amount required in this way in 1962-63. Excluding the effects of accounting changes, which are estimated to have added approximately £21,360,000 to both the expenditure and revenue sides of the Budget, the main reasons for the estimated increase of £196,884,000 in expenditures (excluding redemptions) in 1963-64 are: - State works and housing programmes for which the Commonwealth has undertaken to arrange finance are estimated to increase by £43,586,000 in 1963-64; It is estimated that total cash receipts, excluding loan raisings, will be £1,922,337,000 or £139,935,000 greater than in 1962-63. As in the case of expenditures, receipts are increased to the extent of £21,360,000 as a result of accounting changes made in the 1963-64 Budget. After allowing for the effect of the revenue proposals referred to in the Budget Speech, receipts of the Consolidated Revenue Fund are estimated to total £1,837,221,000 in 1963-64, which is £151,835,000 greater than 1962-63. Of this increase it is anticipated that taxation collections will yield an additional £119,108,000 in 1963-64 and will total £1,549,945,000. In 1962-63, expenditure from the Consolidated Revenue Fund, excluding the transfer payment to the Loan Consolidation and Investment Reserve, was £1,659,008,000. In addition, £66,070,000 of expenditure on Defence Services and £13,100,000 of expenditure on the Snowy Mountains Hydroelectric Scheme was met from the Loan Fund, so that total expenditure ordinarily met from the Consolidated Revenue Fund was £1,738,178,000. The comparable figure for 1963-64 is estimated at £1,912,821,000. It is proposed to charge £62,500,000 of expenditure on Defence Services and £13,100,000 of expenditure on the Snowy Mountains Hydro-electric Scheme to the Loan Fund in 1963-64 so that expenditure charged to the Consolidated Revenue Fund is estimated to total £1,837,221,000. On this basis, the Consolidated Revenue Fund will be balanced. At its June, 1963, meeting, the Loan Council agreed to a borrowing programme of which £272,000,000 is for State works and housing in 1963-64. As State domestic raisings are estimated to amount to £5,000,000 in 1963-64, it is estimated that the amount which will have to be met on this account from Commonwealth loan raisings will be £267,000,000. Loan moneys will again be required in 1963-64 to finance payments to the States for War Service Land Settlement, which are estimated at £4,225,000 (this figure is not comparable with the actual expenditure of £607,000 in 1962-63 because of changes in accounting procedures). Advances to Queensland for the Mount Isa railway project are estimated to be £6,700,000 in 1963-64 compared with £5,959,000 in 1962-63. It is estimated that £13,100,000 of expenditure on the Snowy Mountains Hydro-electric Scheme will be charged to the Loan Fund in 1963-64; this is the same amount as was charged to the Loan Fund in 1962-63. To finance this, it is estimated that drawings totalling £13,140,000 will be made on the International Bank loan for the Snowy Mountains Hydro-electric Scheme. Redemptions, which include redemptions of matured securities, repayments of loans from the International Bank, market repurchases, &c, are expected to total £90,000,000 in 1963-64. The income of the National Debt Sinking Fund is estimated to be £87,116,000, which would fall short of the estimate of redemptions by £2,884,000. In 1962-63 the income of the National Debt Sinking Fund was £81,818,000 and redemptions, repurchases, Ac, amounted to £89,553,000. In 1962-63 there was a net increase of £15,198,000 in Other Trust Fund Balances. It is estimated that there will be a net decline in these balances of £2,000,000 in 1963-64. The estimate for 1963-64 allows for the expected winding-up of the Korean Operations Pool and, in addition, the investment income of the Loan Consolidation and Investment Reserve is expected to decline in 1963-64 as a result of cancellations of securities held by the Reserve during 1962-63. The foregoing figures are brought together in the table below, which compares the Budget estimates for 1963-64 with the actual results for 1962-63. The manner in which it is proposed to finance the various expenditures comprehended in the 1963-64 Budget may be set out as follows: - {: .page-start } page 34 {:#debate-19} ### STATEMENT No. 3.- CONSOLIDATED REVENUE FUND ESTIMATES, 1963-64. REVENUE AND EXPENDITURE ESTIMATES 1963-64, COMPARED WITH ACTUAL RESULTS 1962-63. (Allowing for the effect of Budget proposals.) {: .page-start } page 35 {:#debate-20} ### NOTES ON REVENUE ESTIMATES The estimates of revenue for 1963-64 shown in the foregoing table include the effect of the various revenue proposals announced in the Budget Speech. The effect of those proposals on the revenue estimates is shown in the following table: - >Details of these revenue proposals, together with estimates of their effect on revenue in 1963-64 and in a full year, are as follows: - It is estimated that, if there were no changes in the existing legislation, total revenue in 1963-64 would be £1,850,022,000 or £164,636,000 more than in 1962-63. Taking into account the net effect of the proposed changes announced in the Budget Speech, total revenue in 1963-64 is estimated at *£1,837,221,000* or £151,835,000 more than in 1962-63. Brief explanations of the estimates for particular items follow: - Item No. 1. - Customs Revenue. Customs collections are estimated to increase by £5,930,000 in 1963-64 to a total of £111,000,000. Although imports are expected to increase in 1963-64, it is not expected that they will rise by as much as in 1962-63. The proportion of imports subject to higher rates of duty is expected to increase slightly in 1963-64. Item No. 2. - Excise Revenue. Excise collections in 1963-64 are estimated to total £287,500,000 compared with £274,375,000 in 1962-63. The estimated increase of £13,125,000 is based on the expectation that consumption of locally produced motor spirit and tobacco products will increase at a faster rate than in 1962-63, and that there will be a further increase in consumption of beer and other goods subject to Excise Duty. Item No. 3. - Sales Tax. On the basis of existing legislation, it is estimated that Sales Tax collections in 1963-64 would total £165,000,000, an increase of £8,467,000 on collections in 1962-63. Sales of passenger motor vehicles in 1963-64 are expected to continue at the high level of 1962-63. Sales of other taxable goods are expected to increase in 1963-64 at a faster rate than in 1962-63. After allowing for the effect of the proposed changes announced in the Budget Speech, Sales Tax collections are estimated to amount to £155,595,000 in 1963-64, which is £938,000 less than in 1962-63. Item No. 4. - Income Tax. Following the relatively small increase of £4,367,000 in collections of income Tax from individuals in 1962-63- which reflected the full year effect of the 5 per cent, rebate of tax introduced in February, 1962 - it is estimated that, on the basis of existing legislation, collections of Income Tax from individuals in 1963-64 would be £610,000,000 or £68,288,000 greater than collections in 1962-63. On the basis of existing legislation, it is estimated that in 1963-64 net " pay-as-you-earn " collections would as a result of increases in wages and employment, exceed those of 1962-63 by £41,200,000. As incomes of taxpayers subject to provisional tax are estimated to have risen in 1962- 63, collections on current assessments in 1963- 64, which relate to 1962-63 incomes, are expected to be greater than in 1962-63. After allowing for the effect of the proposed changes announced in the Budget Speech, the estimated amount of collections of Income Tax from individuals in 1963-64 is £606,855,000, or £65,143,000 more than in 1962-63. It is estimated that, on the basis of existing legislation, Income Tax collections from companies in 1963-64 would amount to £290,000,000, which is £30,086,000 greater than 1962-63 collections. The level of company incomes in 1962-63 is estimated to have been substantially greater than in 1961-62. However, the operation of the investment allowance introduced in February, 1962, will mean that collections of company tax in 1963-64 in respect of company incomes in 1962-63 will be lower than they would otherwise have been. After allowing for the effect of the proposed changes announced in the Budget Speech, collections of Income Tax from companies are estimated to be £289,895,000 in 1963-64, or £29,981,000 more than in 1962-63. Dividend (Withholding) Tax is expected to yield £9,000,000 in 1963-64, or approximately the sams as in 1962-63. It is estimated that dividends payable overseas in 1963-64 will be at much the same level as in 1962-63. It is estimated that, on the basis of existing legislation, total Income Tax collections would be £909,000,000, or £98,409,000 more than in 1962-63. After allowing for the effect of the proposed changes announced in the Budget Speech, the estimated amount of collections in 1963-64 is £905,750,000, or £95,159,000 more than in 1962-63. Item No. 5. - Pay-roll Tax. Collections of Pay-roll Tax in 1962-63 were £2,283,000 greater than in 1961-62, reflecting higher levels of wages and employment in 1962-63, offset to some extent by an increase in rebates of Pay-roll Tax paid to exporters under the export incentive scheme. Rebates of Pay-roll Tax to be paid in 1963-64, which will relate mainly to 1962- 63 exports, are expected to be lower than in 1962-63. After allowing for these smaller rebates and also for the higher levels of employment and wage and salary payments expected in the current year, it is estimated that Pay-roll Tax collections will total £68,500,000, or £5,245,000 more than in 1962-63. Items No. 6 and No. 7. - Estate and Gift Duties. After allowing for the effect of proposed changes in Estate Duty announced in the Budget Speech, collections of Estate Duty and *Gift Duty* ir. 1953-64 are estimated to be £18,300,000 and £3,300,000, respectively, compared with actual collections of £17,850,000 and £3,164,000 in 1962-63. Item No. 8. - Business Undertakings Revenue. The operating revenue of Commonwealth Railways is expected to increase by £470,000 in 1963- 64, because of a further expansion in the volume of traffic. Post Office receipts are expected to increase by £8,911,000 to a total of £159,600,000 in 1963-64, as a result of the expected growth in postal, telephone and telegraphic traffic. In 1963-64, receipts include certain recoveries which in previous years were deducted from expenditure. In 1962-63 the amount deducted from expenditure was £958,000 and it is estimated that £1,000,000 will be added to revenue in 1963-64. Broadcasting and Television revenue is estimated to be £14,380,000 in 1963-64, £806,000 greater than in 1962-63, almost entirely because of an expected increase in the number of television viewers' licences. {:#subdebate-20-0} #### Item No. 9. - Territories Revenue Territories revenue in 1963-64 is estimated to be £7,425,000 compared with £7,732,000 in 1962-63. The estimated decrease of £307,000 comprises a reduction of £456,000 in the Aus tralian Capital Territory and an increase of £149,000 in the Northern Territory. The decreased revenue in the Australian Capital Territory is due solely to an estimated reduction in receipts from the sales of leases. Of the estimated increase in Other Revenue of £22,847,000, £20,360,000 arises from the accounting changes outlined in the footnotes to the above table. The main factors responsible for variations between estimated revenue in 1963-64 and actual revenue in 1962-63 are - Treasury. - It is estimated that revenue will be £4,452,000 lower in 1963-64 than in 1962-63. Under the Reserve Bank Act 1959 the profit of the Note Issue Department of the Reserve Bank of Australia and such proportion as the Treasurer determines of the profit of the Reserve Bank from central banking business are payable to Consolidated Revenue. Payments in respect of these profits are expected to be £2,767,000 less in 1963-64 than in 1962-63. In addition, revenue in 1962-63 included a non-recurring receipt of £2,320,000 representing accumulated proceeds of sales of uranium oxide from Rum Jungle; no receipt from this source is expected for 1963-64. Interior. - Revenue is estimated to be £765,000 lower than in 1962-63 mainly because of an expected decline of £553,000 in receipts from sales of property and material. Works. - The estimated increase of £1,302,000 results from the crediting to this item of recoverable administrative charges, which in previous years were a deduction from Departmental Expenditure; it is estimated that receipts from these charges will be £1,780,000 in 1963-64. Civil Aviation. - Revenue in 1963-64 is expected to be £912,000 greater than in 1962-63. There is expected to be an increase of £388,000 in the dividend payment by Qantas Empire Airways Limited; an increase of £75,000 in the payment in the nature of a dividend by the Australian National Airlines Commission; and an increase of £108,000 in miscellaneous revenue. Air navigation charges are estimated to rise by £341,000 in 1963-64; of this amount £54,000 is related to the proposed increases in the rate of charges, which are estimated to yield £163,000 in a full year. Primary Industry. - The main reason for the estimated increase of £3,421,000 is that certain War Service Land Settlement receipts, which were previously deducted from expenditure from the Loan Fund, are now to be credited to Other Revenue. It is estimated that receipts from this source will be £3,740,000 in 1963-64. Shipping and Transport. - The estimated increase of £7,993,000 in revenue in 1963-64 arises mainly from an accounting change under which the proceeds of sales of ships by the Australian Shipbuilding Board, which were previously deducted from Departmental Expenditure, are now to be credited to Other Revenue. It is estimated that receipts from these sales will be £7,800,000 in 1963-64. Territories. - Revenue is expected to increase by £468,000 in 1963-64 partly because certain recoverable administrative charges, which were previously deducted from Departmental Expenditure, are now to be credited to Other Revenue. It is estimated that receipts from these charges will be £83,000 in 1963-64. The balance of the increase is mainly due to expected repayments of £250,000 in respect of the Christmas Island Phosphate Commission Development Agreement and the payment into Consolidated Revenue of £150,000 unrequired trust account balances. National Development. - The estimated increase in revenue of £1,074,000 is largely a result of an expected increase of £1,019,000 in receipts of interest on War Service Homes advances which refect the larger total amount of advances outstanding under the War Service Homes scheme. Army. - The estimated increase in revenue of £6,740,000 arises mainly from the fact that £6,965,000, no longer required in the Korean Operations Pool Trust Account, will be received in 1963-64. Supply. - The estimated increase in revenue of £6,225,000 arises largely from an accounting change under which repayments by the United Kingdom Government in respect of its share of the costs of the Joint Weapons Project, which were formerly deducted from Departmental Expenditure, are now to be credited to Other Revenue. It is estimated that these receipts will be £6,580,000 in 1963-64. Repatriation. - Certain items, which were formerly a deduction from Departmental Expenditure, are now to be treated as a credit to Other Revenue. This change in accounting procedure accounts for £377,000 of the estimated increase of £387,000 in revenue in 1963-64. Of the estimated total increase of £37,617,000 in expenditure on Defence Services, £27,000,000 is attributable to the planned increases in military capability and preparedness which were announced during 1962-63. An additional provision of £3,900,000 is required to meet increases in the pay of the forces and in the salaries of civilian staff arising from the recent salary determinations. The changes referred to in notes (a), (b) and (c) above account for a net increase of £7,317,000. The main factors contributing to variations between estimated expenditure in 1963-64 and actual expenditure in 1962-63 are - Defence. - The estimated reduction of £810,000 is mainly due to the completion of the payment for a computer and ancillary equipment in 1962-63. Navy. - Expenditure is estimated to increase by £5,117,000 in 1963-64 mainly as a result of increases of £4,585,000 in expenditure on the purchase and construction of ships and £1,812,000 in expenditure on general stores. Recent wage determinations require an additional £730,000. These estimated increases are partly offset by a decrease of £3,406,000 in the provision for aircraft purchase and manufacture. Army. - Of the estimated increase in expenditure of £10,481,000, £5,704,000 is in respect of expenditure on arms and equipment and £495,000 in respect of expenditure on general services. An amount of £1,396,000 has been included in respect of the recent wage determinations; in addition, provision of £1,160,000 for pay has been madeto meet an increase in the strength of the Australian Regular Army and the Citizen Military Forces. Air. - It is estimated that expenditure of the Department of Air will increase by £13,073,000 in 1963-64. Expenditure on the purchase of aircraft is estimated to increase by £7,664,000 and expenditure on equipment and stores by £4,239,000. Of the estimated total increase, recent wage determinations account for £1,058,000. Supply. - The main reason for the increase is explained in footnote (a) to the table above. In addition, there is an increase of £682,000 in the provision for special research projects. Recruiting.- The estimated increase of £250,000 is required to intensify the campaign for recruitment in 1963-64, in the light of the increased strengths approved for the Defence Forces. Aid to India. - The provision of £675,000 in 1963-64 represents the balance of the assistance to India announced by the Government in March, 1963. This is a decrease of £771,000 on expenditure in 1962-63. Government Contributions to D.F.R.B. - Expenditure under this heading was formerly included under Other Special Appropriations. In 1962- 63 expenditure was £2,390,000, and it is estimated that there will be an increase in expenditure on this account of £635,000 in 1963-64. Of this increase, £325,000 arises as a result of the proposed variations to benefits announced in the Budget. {:#subdebate-20-1} #### Item No. 12 - Payment to National Welfare Fund The National Welfare Fund Act 1952 provides that the payment from Consolidated Revenue to the National Welfare Fund each year should be equal to the actual expenditure from the Fund in that year. Expenditure from the Fund was £379,294,000 in 1962-63 and, after taking account of the cost of the Budget proposals, is estimated at £411,386,000 in 1963-64. Detailed explanations of the estimated increase of £32,092,000 in expenditure from the Fund in 1963-64 are given in Statement No. 4 - National Welfare Fund Estimates, 1963- 64. The main factors responsible for variations between estimated expenditure in 1963-64 and actual expenditure in 1962-63 are - Sinking Fund. - The estimated increase of £2,004,000 in contributions to the National Debt Sinking Fund in 1963-64 reflects the normal rate of accumulation in these contributions. Interest.- The estimated increase of £1,185,000 in interest payments on debt repayable overseas in 1963-64 is the result of loans floated in the United Kingdom and in the United States during 1962-63. The estimated decrease of £3,211,000 in interest payments on debt repayable in Australia is due mainly to the cancellation of Commonwealth debt through the operations of the National Debt Sinking Fund and the Loan Consolidation and Investment Reserve. Loan Redemption and Conversion Expenses. - Loan redemption and conversion expenses are estimated to be £424,000 greater in 1963-64 than in 1962-63 mainly because of expenses expected to be incurred in respect of debt of the Commonwealth maturing overseas during 1963-64. No such expenses were incurred by the Commonwealth in 1962-63. In addition, the amount of debt maturing in Australia in respect of which the Commonwealth is responsible for redemption and conversion expenses will be considerably higher than in 1962-63. The main factors responsible for variations between estimated expenditure in 1963-64 and actual expenditure in 1962-63 are - External Affairs. - The estimated increase of £1,802,000 is the result of an expected increase in disbursements by the Indus Basin Development Fund. Treasury. - It is estimated that expenditure will be £5,538,000 less in 1963-64 than in 1962-63. No provision has been made for payments to the International Monetary Fund in 1963-64; in 1962-63 an amount of £11,525,000 was paid to the Fund, representing repurchase of that amount of Australian currency to bring the " gold " portion of Australia's subscription to the Fund up to the full 25 per cent of quota. Government contributions to Defence Forces Retirement Benefits, which were previously included under this item, are now included under expenditure of Defence Services; in 1962-63 these contributions were £2,390,000. It is estimated that payments of £2,724,000 will be made to the International Development Association, or £1,378,000 more than in 1962-63; the estimate allows for a payment of £113,000, representing the cash portion of Australia's third annual instalment of its capital subscription, and the cashing by the International Development Association of £2,611,000 of demand securities lodged with it. An amount of £5,000,000 is being provided to increase the capital of the Commonwealth Development Bank of Australia in 1963-64. It is estimated that there will be an increase of £1,944,000 in Commonwealth contributions to the Public Service Superannuation Fund, of which £1,128,000 arises as a result of the proposed variations to benefits announced in the Budget. Customs and Excise. - Expenditure is estimated to increase by £7,195,000 in 1963-64, mainly as a result of the proposal announced in the Budget Speech to introduce legislation to provide for the payment of a subsidy at the rate of £3 per ton on superphosphate used in Australia; subsidy payments in 1963-64 are estimated at £7,000,000. Primary Industry. - Expenditure is estimated to increase by £4,539,000 in 1963-64. It is expected that it will be necessary to make a payment to wheat-growers of £11,600,000 in 1963-64 under the Wheat Industry Stabilization Act 1958-1960 *to* make up the guarantee on the 1962-63 crop. This represents an increase of £4,312,000 over expenditure in 1962-63. Growers are guaranteed a return under this Act based on " cost of production " in respect of up to 100,000,000 bushels of wheat exported from each of the five wheat crops for the seasons 1958-59 to 1962-63. If the average export price for a crop exceeds the guaranteed return, growers are required to contribute to the Wheat Prices Stabilization Fund. When the average export price for a crop falls below the guaranteed return, the deficit is made up by drawing upon the Wheat Prices Stabilization Fund, and, if that Fund is exhausted, by payment from Consolidated Revenue. Departmental Expenditure comprises the annual running costs of Civil Departments (excluding War and Repatriation Services, Business Undertakings, Defence Departments and expenditure in the Territories) and those other items which arise in connexion with a Department's responsibilities. The composition of the total Departmental Expenditure set out above is as follows: - Of the estimated increase in expenditure of £26,661,000 in 1963-64, £12,534,000 arises from the accounting changes referred to in the footnotes to the table setting out Departmental Expenditure. Increases in wage and salary payments resulting from recent wage determinations are estimated to account for a further £4,861,000 of the estimated increase. Some of the more important factors responsible for variations between estimated expenditure in 1963-64 and actual expenditure in 1962-63 are - Prime Minister's. - The estimated increase of £1,182,000 comprises expected increases of £449,000 in running costs and £733,000 in expenditure on other services. The increase in running costs is due principally to increases in salaries and administrative expenses of the Australian Security Organization, £153,000, and the Public Service Board, £123,000. Expenditures on other services include increases of £234,000 for the Commonwealth Scholarship Scheme, £631,000 for the Australian National University and £125,000 for the grant to the Elizabethan Theatre Trust. External Affairs. - Increased expenditure of £1,271,000 is expected as a result of estimated increases of £276,000 in running costs and £995,000 in expenditure on other services. The estimated increase in expenditure on running costs is due mainly to staff increases, including staff employed on Colombo Plan - Technical Assistance who were recently transferred from the Public Service Board. Of the increase in other services, £178,000 is in respect of the Colombo Plan, £375,000 represents a contribution to the United Nations Special Fund and £74,000 is in respect of the Special Commonwealth African Assistance Plan. Treasury. - Increased running costs, associated mainly with increases in staff and margins increases in wages and salaries for the Taxation Branch, the Bureau of Census and Statistics and the Central Treasury, account for £1,402,000 of the estimated increase of £1,954,000 in expenditure in 1963-64. Expenditure on other services is estimated to rise by £552,000, principally because of an estimated loss of £300,000 on the minting of coins, and an increase of £219,000 in interest payments on trustee moneys lodged at call. Attorney-General's. - Increased running costs, mainly in respect of increased salary payments, account for £407,000 of the estimated increase of £417,000 in expenditure in 1963-64. Interior.- Of the estimated increase in expenditure of £835,000, £831,000 relates to increased running costs. The estimated increase in running costs includes £294,000 for office accommodation and services and £197,000 for the Meteorological Bureau. Works. - The increase in expenditure of £5,092,000 relates entirely to running costs. Approximately £4,651,000 of this increase, however, is due to the discontinuance of the practice of recovering administrative costs from client Departments and instrumentalities and crediting these amounts to the Administrative vote of the Department of Works. The remainder of the increase in running costs is mainly due to salary increments and margins increases, the filling of vacant positions and an additional £134,000 for private consultants' fees. Civil Aviation. - Of the estimated increase in expenditure of £1,667,000 in 1963-64, increases in running costs are estimated to account for £1,484,000, due mainly to increasing air activity, preparations for the introduction of jet aircraft in domestic services and margins increases in salaries and wages. The estimated increase of £183,000 in expenditure on other services includes provision for an increase of £101,000 in the contribution towards the cost of ground facilities in the Pacific. Customs and Excise. - The increase in estimated expenditure of £490,000 in 1963-64 is the net result of an increase of £499,00 in running expenses and a decrease of £9,000 in other services. Health. - The estimated increase in expenditure of £186,000 in 1963-64 is the net result of an expected increase in running costs of £271,000 and a decrease in expenditure of £85,000 on other services resulting primarily from a smaller requirement for poliomyelitis vaccine. Trade. - Expenditure is estimated to increase by £520,000 in 1963-64, of which £466,000 is an expected increase in running costs and £64,000 an expected increase in other services. Provision has been made for expenditure of an additional £221,000 to cover salaries of an augmented star! in Australia, £202,000 for increased publicity and £97,000 to cover the continuing expansion of the Trade Commissioner Service. Primary Industry. - The estimated increase in expenditure of £51,000 in 1963-64 is the net result of an estimated increase of £206,000 in running costs partly offset by an expected decline of £155,000 in expenditure on other services. Of the estimated increase of £206,000 in running costs, £181,000 arises from estimated increases in wages and salaries. The estimated decline in expenditure on other services of £155,000 arises mainly from no provision being made in 1963-64 for contributions towards the purchase of premises for the Australian Wheat Board which cost £205,000 in 1962-63. Social Services. - Of the estimated increase in expenditure of £1,070,000 in 1963-64, running costs are estimated to increase by £406,000 and expenditure on other services by £664,000. The estimated increase in expenditure on other services consists of an increase of £514,000 in grants towards the cost of homes for the aged and an initial provision of £150,000 for the proposed scheme of grants towards the cost of accommodation for disabled persons. Shipping and Transport. - As a result of a change in accounting procedure, proceeds from sales of ships, previously deducted from expenditure under this item, are now to be credited to Other Revenue. Of the estimated increase of £8,069,000 in expenditure in 1963-64, £7,800,000 is a reflection of this accounting change. The balance of the increase is accounted for by estimated increases of £119,000 in running costs and £150,000 in expenditure on other services. Territories. - As a result of a change in accounting procedure, recoveries from Territory Administrations, formerly deducted from expenditure under this item, are now to be credited to Other Revenue. Of the estimated increase of £209,000 in expenditure, £83,000 is a reflection of this accounting change, while the balance relates entirely to increased running costs. Immigration. - The estimated increase in expenditure of £1,153,000 on 1963-64 comprises £175,000 for increased running costs and £978,000 for increased expenditure on other services. This latter mainly reflects an expected increase of £930,000 in expenditure on Assisted Migration. Labour and National Service. - The estimated increase of £226,000 is mainly for running costs. National Development. - Expenditure is estimated to increase by £1,147,000 in 1963-64, of which £498,000 relates to an expected increase in running costs and £649,000 to the estimated increase in expenditure on other services. The expected increase in expenditure on running costs includes provision for increased expenditure on oil search activities and the increase in expenditure on other services is expected to arise because of an increase of £674,000 in the provision for the Atomic Energy Commission, mainly in connexion with running and exploration costs of Rum Jungle. C.S.I.R.O. - Expenditure is estimated to increase by £1,106,000 in 1963-64. Running costs are estimated to increase by £1,067,000, comprising £500,000 for increased salary and wage costs resulting from recent determinations, and £567,000 to permit continuation of existing levels of activity and some expansion in research activity. An increase of £39,000 is expected in expenditure on other services. Of the estimated increase of £11,819,000 in expenditure in 1963-64, £1,581,000 represents the estimated cost of Budget proposals. Recent wage determinations explain £586,000 of the estimated increase. A further £846,000 arises from the accounting changes referred to in the footnotes to the above table. War and Service Pensions Allowances. - Of the estimated increase of £9,065,000, an amount of £1,517,000 is attributable to the proposed increases in pensions and allowances. The balance of £7,548,000 comprises £4,465,000 for an additional twelve-weekly bank payment of war pensions in 1963-64 and £3,083,000 for expected increases in the number of pensioners and in the rates of war pensions following re-assessments of incapacity. Repatriation - Administrative. - It is expected that administrative expenses of the Department will rise by £359,000 mainly because of increases in salary costs resulting from wage determinations and the full year of cost of additional staff appointed during 1962-63. Repatriation - Hospitals and Other Institutions. - The operating expenses of Repatriation hospitals, out-patient clinics, artificial limb centres and Anzac hostels in 1963-64 are expected to exceed actual expenditure in 1962-63 by £1,241,000. Of this increase, an amount of £253,000 is attributable to the effects of recent wage determinations and £183,000 to the extra cost for a full year of salaries and wages for staff appointed during 1962-63 and the cost of filling approved vacant positions in 1963-64. The balance of the increase comprises £130,000 for the second stage of a ward re-equipment programme extending over five years; £280,000 for increases in other operating expenses, mainly related to larger numbers of in-patients', and £395,000 due solely to a change in accounting practice whereby certain receipts are no longer deducted from expenditure but are credited to Other Revenue. Repatriation - Other Repatriation Benefits. - The estimated increase of £2,167,000 in expenditure in 1963-64 largely reflects the continuing growth in the numbers receiving medical and related treatment. Of the increase, £779,000 is for pharmaceutical services resulting from an expected rise in the number of prescriptions; £427,000 is to meet an anticipated increase in the number of visits and consultations by medical personnel and in the costs of ancillary medical treatment; £270,000 is for the Soldiers' Children Education Scheme including £64,000 for the proposed increases in allowances; and £682,000 is largely the result of a general rise in maintenance, travelling and incidental costs due to the greater numbers receiving treatment. War Service Homes - Administrative. - The increase of £141,000 comprises £83,000 for rises in salary costs resulting from recent wage determinations and £58,000 attributable to a general rise in administrative costs arising from the continued growth in the number of participants under the War Service Homes scheme. Reconstruction and Rehabilitation. - Expenditure in 1963-64 is estimated to be £624,000 less than in 1962-63, mainly because of an accounting change - see footnote (c) to table above. Of the estimated increase in expenditure of £8,886,000 in 1963-64, £3,361,000 is in respect of increased wages and salary payments resulting from recent wage determinations. The main factors responsible for variations between estimated expenditure in 1963-64 and actual expenditure in 1962-63 are: - Railways. - The estimated increase of £319,000 in expenditure in 1963-64 includes £101,000 for margins increases in salaries and wages and £218,000 for additional operating and maintenance costs associated with an expected expansion in the volume of traffic. Post Office. - Of the estimated increase in expenditure of £6,919,000, salaries and wages are expected to increase by £4,486,000 of which £2,829,000 is due to margins increases while £1,657,000 is required to meet the cost for a full year of increases in salaries, wages and allowances during 1962-63. Provision has been made for an increase of £1,206,000 in administrative expenses, mainly the additional costs of travelling and subsistence, printing of telephone directories and the upkeep and hire of motor vehicles. Expenditure on stores and materials is expected to increase by £775,000 mainly for the operation and maintenance of engineering services facilities. Broadcasting and Television. - Expenditure is estimated to increase by £1,648,000 in 1963-64. The costs of the Postmaster-General's Department for technical and other services are expected to increase by £454,000 almost entirely due to the opening of new television stations. The increase in respect of the Australian Broadcasting Commission is estimated to be £1,148,000 and includes £351,000 for margins increases. The estimate for 1963-64 includes an amount of £148,000 to meet the cost of higher wages and salaries arising from recent wage determinations. The main factors contributing to variations between estimated expenditure in 1963-64 and actual expenditure in 1962-63 are - Northern Territory. - The requirements of the Northern Territory Administration account for £767,000 of the total estimated increase of £1,350,000 in 1963-64. The operation of public utility services will require increased expenditure of £76,000 and repairs and maintenance and development services an additional £368,000. Australian Capital Territory. - The estimated increase of £539,000 in expenditure in 1963-64 reflects the continuing development of the National Capital. Provision has been made for additional expenditure of £95,000 for general services, £142,000 for the maintenance of parks and gardens, and £161,000 for educational services. Administrative expenditure of the National Capital Development Commission in 1963-64 is expected to increase by £47,000. Papua and New Guinea.- The estimated expenditure of £25,477,000 in 1963-64 relates almost entirely to the grant of £25,250,000 by the Commonwealth to the Administration of the Territory to meet the difference between proposed expenditure and local revenue. It is estimated that expenditure by the Administration will increase by approximately £6,150,000 in 1963-64 of which £5,250,000 will be met from an increase in the grant from the Commonwealth. This will provide for recruitment of additional staff and increased expenditure on capital works and services, particularly for housing, schools, hospitals, roads, bridges and wharves. The above table lists payments to or for the States from Special Appropriations of the Consolidated Revenue Fund. Full details of these and other payments to or for the States are given in the White Paper entitled " Commonwealth Payments to or for the States, 1963-64 ", issued as part of the information provided to the Parliament in connexion with the Budget. Brief notes on the items in the above table are given below. Financial Assistance Grants. - Under the provisions of the State Grants Act 1959 and 1962, the financial assistance grant payable to each State in 1963-64 is to be determined by adjusting the grant paid to that State in 1962-63 in accordance with a formula based on estimated movements in the population of that State between 1st July, 1962, and 1st July, 1963, and the percentage increase (adjusted by a " betterment factor " of one-tenth) in the level of average wages for Australia as a whole between 1961-62 and 1962- 63. Preliminary estimates made by the Commonwealth Statistician indicate that the financial assistance grants payable to the States in 1963- 64 under the States Grants Act 1959 and 1962 will total £318,352,000 or £14,032,000 more than the grants paid under those Acts in 1962-63. The final determination of the grant payable to each State will be made by the Statistician as the necessary data become available later in the year, and in any case, as required by the legislation, not later than 31st December, 1963. Special Grants. - The Commonwealth Grants Commission has recommended special grants for the claimant States in 1963-64 totalling £11,450,000, compared with £11,251,000 in 1962-63. Of the total amount recommended for payment in 1963-64, the Commission has recommended that Western Australia be paid £6,072,000, compared with £6,210,000 in 1962-63, and Tasmania £5,378,000, compared with £5,041,000 in 1962-63. Additional Assistance Grants. - At the Loan Council meeting and Premiers' Conference in June, 1963, the Commonwealth offered to make available to the States in 1963-64 a non-repayable additional assistance grant of £20,000,000 to be expended by the States, at their discretion, on employment-giving activities. In 1962-63 a total amount of £17,500,000 was provided to the States for this purpose, comprising a grant of £12,500,000 provided for in the Budget and an additional amount of £5,000,000 offered to the States at the Premiers' Conference and Loan Council meeting held in February, 1963. Payments under the Financial Agreement. - The Financial Agreement provides that the Commonwealth will, in each year during the period of 58 years commencing 1st July, 1927, contribute a fixed amount of £7,385,000 towards the interest payable on State debts existing at 30th June, 1927. The Sinking Fund contributions made by the Commonwealth in respect of State debts existing at 30th June, 1927, and incurred since that date, vary according to the nature and extent of borrowings by the States and are paid direct to the National Debt Sinking Fund. The estimated increase of £493,000 in these contributions in 1963-64 reflects the growth in State debt. Commonwealth Aid Roads Grants. - The Commonwealth Aid Roads Act 1959 provides for the payment of a total amount of £58,000,000 to the States in 1963-64, £48,000,000 as basic grants and £10,000,000 as matching assistance. In 1962-63 road grants to the States totalled £54,000,000 of which £46,000,000 represented basic grants and £8,000,000 matching assistance. The amount payable to a State as matching assistance in 1963-64 is subject to adjustment if it is subsequently found that the State has not qualified in full for the matching assistance paid to it in 1962-63. The payment of £58,000,000 to the States in 1963-64 will bring total payments for the five years 1959-60 to 1963-64 to £250,000,000 and thus complete the grants payable to the States under the 1959 Act. Financial Assistance to States for Universities. - The States Grants (Universities) Acts 1960, 1962 and 1963, which were enacted following the presentation by the Australian Universities Commission of its first report in 1960 and the report in 1961 by the Committee on Teaching Costs of Medical Hospitals, provide financial assistance to the States for universities of £44,800,000 over the three calendar years 1961, 1962 and 1963. As a result of the operation of this legislation and after taking account of the preliminary views of the Australian Universities Commission (pending its report to the Government later this year on the financial needs of universities for the three calendar years 1964, 1965 and 1966), payments to the States for universities are expected to increase from £15,709,000 in 1962-63 to £17,979,000 in 1963-64. Mental Institutions - Contribution to Capital Expenditure. - The States Grants (Mental Institutions) Act 1955 provides for Commonwealth grants of up to £10,000,000 to the States for the building and equipping of mental hospitals, on the basis of £1 from the Commonwealth for each £2 spent by a State. Expenditure by the Commonwealth in 1962-63 amounted to £795,000 and it is estimated that £920,000 will be required for this purpose in 1963-64. Replacement of Derby Jetty - Western Australia. - Under the Derby Jetty Agreement Act 1962, the Commonwealth is providing financial assistance to Western Australia of up to £800,000 for the construction of a new jetty with improved facilities at Derby in the West Kimberleys region of the State. Half of the assistance is by way of a grant and the other half is repayable with interest over fifteen years. In 1962-63 payments to the State amounted to £300,000 and provision has been made for the payment of £350,000 is 1963-64. Western Australia Northern Development. - The Western Australia Grant (Northern Development) Act 1958-1959 provided for the payment to Western Australia of up to £5,000,000 for development undertaken by the State in the area north of the twentieth parallel of latitude during the period of five years commencing on 1st July, 1958. Payments to Western Australia during 1962-63 amounted to £1,432,000 bringing the total payments by the Commonwealth in respect of the scheme to the maximum amount of £5,000,000 specified in the Act. Provision of £1,000,000 has been made for further financial assistance to Western Australia in 1963-64 under a projected new agreement which will provide a total of £3,500,000 for expenditure on approved projects during the three years 1963-64 to 1965-66. Cattle Roads - Queensland. - Under the Queensland Beef Cattle Roads Agreement Act 1962 the Commonwealth is to provide financial assistance of up to £8,300,000 to Queensland for the construction and bitumen sealing of certain roads for the transport of beef cattle. One half of the expenditure by the Commonwealth in excess of £1,700,000 is repayable by the State and the remainder takes the form of a grant. In 1962-63 payments amounting to £1,000,000 were made to the State bringing total Commonwealth contributions to £1,650,000. It is estimated that £2,500,000 will be required for expenditure by the State in 1963-64. Brigalow Lands Development - Queensland. - The Brigalow Lands Agreement Act 1962 provides for financial assistance to Queensland of up to £7,250,000 for the development of approximately 4,271,000 acres of brigalow land in the Fitzroy River Basin. The assistance is being made available by way of interest-bearing advances to cover expenditure by the State on certain specified works during the period of five years ending 30th June, 1967. Repayments are to commence in 1968. The first advances amounting to £600,000 were made in 1962-63 and provision has been made for advances totalling £1,250,000 in 1963-64. Cattle Roads - Western Australia. - The Western Australia Grant (Beef Cattle Roads) Act 1962 authorizes grants to Western Australia of amounts not exceeding £700,000 in 1962-63 and £750,000 in each of the three succeeding years for expenditure on the construction and improvement of beef cattle roads in the northern part of the State. The State received the full amount of £700,000 in 1962-63, and provision is made for the payment of £750,000 in 1963-64. Coal Loading Works - New South Wales. - Under the Coal Loading Works Agreement (New South Wales) Act 1961 the Commonwealth is providing financial assistance to New South Wales of up to £2,650,000, partly by way of repayable advances from the Consolidated Revenue Fund and partly by grants from the Coal Industry Fund of the Joint Coal Board, for improvements to coal loading facilities at Newcastle, Port Kembla and Balmain. To 30th June, 1963 repayable advances had amounted to £782,000 (and grants to £474,000). In 1963-64 it is estimated that repayable advances will be £405,000 (and grants £245,000). Coal Loading Works - Queensland. - Under the Coal Loading Works Agreement (Queensland) Act 1962 the Commonwealth has entered into an agreement with the Queensland Government to provide financial assistance up to a total amount of £200,000 to expedite improvements to coal loading facilities at the port of Gladstone. Assistance is to be by way of a repayable longterm advance of up to £100,000 and a grant of up to £100,000. It is expected that the total assistance of up to £200,000 will be provided in 1963-64. Chowilla Reservoir - New South Wales. - The Commonwealth has undertaken to provide a loan to New South Wales to finance that State's onequarter contribution of the cost of construction of the proposed Chowilla Reservoir, which is to be constructed as an approved work under the River Murray Waters Agreement. The amount to be advanced to the State in 1963-64 is estimated at £88,000. The Commonwealth's contribution to the River Murray Commission in respect of its quarter-share under the Agreement of the cost of construction of the Chowilla Reservoir is included in the expenditure estimates of the Department of National Development shown in the table for Item No. 20 - Capital Works and Services. Blowering Reservoir - New South Wales. - Arrangements have been made between the Commonwealth and New South Wales Governments for construction of the Blowering Reservoir. Under the arrangements, the bulk of the work involved will be undertaken by the Snowy Mountains Hydro-electric Authority as the agent for and at the expense of the State of New South Wales. The Commonwealth will, however, finance one-half of the cost in the form of repayable interestbearing loans to New South Wales. Commonwealth payments to New South Wales in 1963-64 are estimated at £50,000. Total expenditure on Capital Works and Services is expected to be £195,791,000 in 1963-64, or £16,232,000 more than in 1962-63. Since £13,100,000 of expenditure by the Snowy Mountains Hydro-electric Authority is expected to be charged to Loan Fund in accordance with the Loan (International Bank for Reconstruction and Development) Act 1962, £182,691,000 of the estimated expenditure on Capital Works and Services is expected to be charged to the Consolidated Revenue Fund in 1963-64. As a result of the change in accounting procedure referred to in the footnote to the above table, it is estimated that expenditure will be £1,434,000 less in 1963-64 than would otherwise have been the case. The main factors responsible for variations between estimated expenditure in 1963-64 and actual expenditure in 1962-63 are: - Prime Minister's - Australian National University. - Expenditure by the Australian National University in 1962-63 was £2,002,000, of which £554,000 was met from moneys in hand at 30th June, 1962. Thus, although the grant to the University in 1963-64 is expected to be £765,000 greater than in 1962-63, expenditure by the University in 1963-64 is expected to be £211,000 greater. External Affairs. - The major items accounting for the estimated increase of £914,000 in 1963-64 are provisions for Chancery projects in Tokyo, £160,000; Djakarta, £200,000; and the purchase of a site in Washington, £550,000. Treasury. - It is estimated that expenditure will increase by £325,000 in 1963-64. Expenditure for the Government Printer is estimated to increase by £809,000, all of which is in the nature of a working capital advance. However, with the completion of the Government Printing Office, it is estimated that there will be a reduction of £1,289,000 in expenditure on the works programme. Provision for machinery for the National Mint totals £865,000 and £121,000 has been provided to meet the initial payments on the electronic computer installation at the Bureau of Census and Statistics. Attorney-General's. - The estimated increase of £174,000 in total expenditure is accounted for by the provision of £200,000 for the Supreme Court Building at Darwin. Interior. - It is estimated that expenditure will be £126,000 lower in 1963-64 than in 1962-63. The provision for Commonwealth offices and other buildings outside the Australian Capital Territory is £346,000 less than in 1962-63 mainly because of the completion of Stage 1 of the Commonwealth Offices, Sydney. It is expected that an additional £320,000 will be required for the Meteorological Bureau's works and equipment programmes. The provision for acquisitions is £123,000 less than in 1962- 63. Works. - The estimated increase of £445,000 in expenditure in 1963-64 includes £52,000 for buildings, works, furniture and fittings; £143,000 for the transfer of the Department's Head Office property from the Department of the Interior; and £251,000 for plant and equipment. Civil Aviation - Works, Sites and Buildings. -Of the estimated increase of £1,427,000 in total expenditure in 1963-64, £1,400,000 is attributable to major engineering works to be commenced in 1963- 64 at Sydney, Tullamarine and Launceston airports. A further £120,000 will be required for runway works at Canberra airport. Expenditure on acquisitions is expected to be £322,000 less than in 1962-63 due to a substantially reduced provision for land acquisitions for airport development at Perth, Brisbane and Tullamarine. Civil Aviation - Technical Equipment. - The estimated increase of £511,000 in expenditure is due largely to the commencement in 1962-63 of a special additional programme of £3,000,000 forthe installation of radar at major capital city airports, the modification and expansion of the navigational air system and the purchase of a jet aircraft. Customs and Excise. - Expenditure is estimated to increase by £575,000 in 1963-64. The provision for buildings, works, furniture and fittings is expected to increase by £563,000 due mainly to the provision of £530,000 for the New Customs House, Melbourne. Health.- The estimated decrease of £467,000 in expenditure in 1963-64 arises from the fact that no provision has been made for capital for the Commonwealth Serum Laboratories Commission, compared with expenditure of £500,000 in 1962-63. Shipping and Transport - Railway Projects. - Under the Railway Agreement (Western Australia) Act 1961, the Commonwealth is to provide financial assistance to Western Australia for construction of a standard gauge railway from Kwinana to" iron ore deposits at Koolyanobbing and to Kalgoorlie. The first Commonwealth payments amounting to £2,163,000 were made in 1962-63 and it is estimated that £5,500,000 will be required in 1963-64. Under the Railway Standardization (New South Wales and Victoria) Agreement Act 1958, which relates to the construction of the standard railway between Albury and Melbourne, a payment of £1,488,000 was made by the Commonwealth in 1962-63, bringing the total Commonwealth payments for the project to £15,973,000. This project has been completed and no further expenditure will be required. Under the Railway Equipment Agreement (South Australia) Act 1961, the Commonwealth agreed to provide financial assistance of up to £1,325,000 for the purchase of 12 locomotives and 100 wagons for the Port Pirie-Broken Hill railway. .An amount of £1,300,000 was provided hi 1962-63 and it is expected that the balance of £25,000 will be provided in 1963-64. Work on the standardization of the Port Pirie-Broken Hill railway is expected to commence in 1963-64 and an amount of £1,680,000 for expenditure under the Railway Standarization (South Australia) Agreement Act 1949 is provided for this purpose. Shipping and Transport - Other Items. - The estimated increase of £629,000 reflects the provision of £1,000,000 for the Australian Coastal Shipping Commission (the Australian National Line) which is expected to require additional capital funds in 1963-64 for expenditure on ship construction. Expenditure on the replacement of lighthouse supply vessels is expected to be £407,000 less than in 1962-63. National Development- War Service Homes. - During 1962-63, a special provision of £2,500,000 was added to the original Budget provision of £35,000,000. It is estimated that £35,000,000 will be expended on War Service Homes in 1963-64. National Development - Snowy Mountains Hydro-electric Authority.- The increase of £2,434,000 in estimated expenditure by the Snowy Mountains Hydro-electric Authority in 1963-64 is attributable to increased activity on the construction of major works in the Snowy-Murray section of the Scheme. The Murray 1 power station is expected to be in operation by the winter of 1966. It is estimated that £13,100,000 of the total expenditure of £24,800,000 will be financed from drawings during 1963-64 on the loan of $100,000,000 being made to the Commonwealth by the International Bank for Reconstruction and Development in respect of the Murray 1 power project. National Development - Other Items. - The estimated increase of £131,000 in 1963-64 reflects additional expenditure of £132,000 under the River Murray Waters Act, including the Commonwealth's contributions to the cost of construction of the Chowilla Reservoir and the arrangements associated with the use of water from the Menindee Lakes Storage. Commonwealth Scientific and Industrial Research Organization. - It is estimated that expenditure will be £839,000 greater in 1963-64. Expenditure for laboratories and other works under the control of the Department of Works is estimated to increase by £697,000 (including an increase of £328,000 for the Chemical Physics Laboratory at Clayton, Victoria). An amount of £154,000 has been provided for certain categories of equipment, expenditure on which was previously charged to running expenses, and £45,000 has been provided to meet initial expenditure on scientific computing equipment. These increases are partly offset by estimated decreases of £27,000 for the phytotron and £72,000 in respect of the acquisition of sites and buildings. Commonwealth Railways. - Expenditure in 1963-64 is estimated to increase by £517,000 mainly because of the proposed purchase of additional locomotives and rolling stock and increased expenditure on track improvements, building works and housing. Post Office. - The estimated increase of £6,682,000 in 1963-64 includes £5,150,000 for the cost of additional technical equipment required mainly to meet the demand for telephone services. Estimated expenditure on the works programme for the Post Office is £1,559,000 greater than actual expenditure in 1962-63 due mainly to the increased provision of £559,000 for micro-wave repeating stations associated with stage 4 of regional television development and the British Commonwealth large capacity cable project. The Sydney Mail Exchange building is expected to require £1,000,000 in 1963-64. Overseas Telecommunications Commission. - The provision of £1,722,000 in 1963-64 represents portion of Australia's contribution towards the cost of the trans-Pacific telephone cable project; this provision is £1,778,000 less than expenditure in 1962-63. Broadcasting and Television. - Estimated expenditure in 1963-64 is £329,000 less than in 1962-63. Expenditure on television transmission equipment is estimated to be £857,000 less, while the provisions for television studio equipment for the Australian Broadcasting Commission for broadcasting and television buildings and ancillary works are, respectively, £240,000 and £225,000 greater than actual expenditure last year. An amount of £722,000 has been provided for regional television transmitter buildings, access roads and power supplies, on which expenditure last year was £708,000. Northern Territory. - The 1963-64 provision for the Northern Territory is £1,407,000 greater than expenditure in 1962-63. This figure includes increases of £195,000 for the provision of health services, £354,000 for advances to the Northern Territory Housing Commission for rental housing and £222,000 for loans to church organizations for the erection of residential accommodation. Estimated expenditure on works and acquisitions for the Northern Territory Administration is £430,000 greater. Provision of £1,200,000 has been made in respect of the beef cattle roads programme; this is £31,000 greater than expenditure in 1962-63. An amount of £104,000 is provided for an advance to the proposed new port authority in Darwin. Australian Capital Territory. - Expenditure in 1963-64 is estimated to be £1,882,000 greater than expenditure in 1962-63. This increase includes an additional amount of £1,770,000 in the National Capital Development Commission's programme (of which £1,330,000 is for expenditure on the Mint building), and £358,000 for the Department of Health (Canberra Hospital development). Estimated expenditure on plant and equipment for the Department of the Interior, including the transport undertaking, is expected to be £174,000 greater than last financial year. Papua and New Guinea. - The reduction of £274,000 in estimated expenditure is due to the cessation of the Ex-Servicemen's Credit Scheme of Papua and New Guinea in November, 1962. {:#subdebate-20-2} #### Item No. 21. - Loan Consolidation and Investment Reserve In 1962-63 an amount of £26,378,000 was paid from Consolidated Revenue to the Loan Consolidation and Investment Reserve, which also received interest on investments amounting to £13,005,000. It is estimated that there will be no payment to the Loan Consolidation and Investment Reserve in 1963-64. {: .page-start } page 51 {:#debate-21} ### ADDENDUM- REVENUE PROPOSALS {:#subdebate-21-0} #### Sales Tax {:#subdebate-21-1} #### Exemptions - Foodstuffs, including ice cream and ice cream mixes, but not including confectionery, carbonated beverages and aerated waters. Bags and wrapping materials of plastic film, metallic foil and similar materials and resinated paper strapping and seals used to wrap up and secure goods for marketing or delivery. Returnable bottles, jars, boxes, cases and crates used in marketing cordials. Aluminium foil used for household purposes. Unconditional exemption of tractors (but not parts therefor), of metal materials of a kind used in manufacturing or building construction (not being precious metals) and of scoops of a kind used in earth moving. Fork-lift trucks for use on roll-on, roll-off ships. Adhesives for attachment of wooden floorings, water (including distilled and filtered water), horseshoes and horseshoe nails, butane gas, propane gas, wool of all descriptions, and inside lining and packing materials for certain containers. Goods for use by safety organizations. Reduction in Rates - From 25 per cent to 2½ per cent. - floor rugs and mats made of fur. From 25 per cent to 12½ per cent - wireless receivers of a kind used by public commercial telecommunications. From 121 per cent to 2½ per cent.- household goods being silver-plated ware. {:#subdebate-21-2} #### Income Tax Minimum Taxable Income. - Increase to £209 for individual taxpayers and non-profit companies. Separate Net Income. - Maximum concessional deduction on account of a dependant to be unaffected unless the dependant's separate net income exceeds £65, thereafter the deduction to be reduced by £1 for every £1 by which the separate net income exceeds £65. Government assistance (including assistance under the Soldiers' Children Education Scheme) not to be taken into account in determining the separate net income of a child except to the extent it is paid as a contribution towards the child's living expenses. Education Expenses. - Increase maximum allowable deduction to £150 per child {:#subdebate-21-3} #### Medical, Dental, &c., Expenses - Remove limitation of £150 per person on maximum allowable claim. Inclusion of the expense of keeping a guide dog for a person who is blind; inclusion of payments made to certain dental mechanics for the supply of artificial teeth; deduction to be allowed where a trustee pays medical expenses of a beneficiary; deductions for medical expenses paid by a taxpayer to be reduced by the amount of those expenses recouped by another person from a hospital or medical benefit fund. Funeral Expenses. - Increase maximum allowable deduction to £50 in respect of a bereavement. {:#subdebate-21-4} #### Medical, Funeral and Education Expenses - Deductions for payments by more than one taxpayer in respect of the one person to be limited to the statutory maxima (if any) in respect of that person. Expenses incurred before death of a taxpayer and paid by the trustee of the estate to be deductible from the deceased's income of the year of death. Rates and Taxes. - Rates and taxes paid on " own-your-own-flats " to be deductible. Dependant's Allowance. - Dependant's allowance for a housekeeper caring for a wife receiving an invalid pension to be granted. Gifts. - Gifts to the Australian Institute of International Affairs, the National Safety Council of Australia and the Australian National Travel Association to be allowable as deductions under s. 78(1) (a). Age Allowances. - To extend married couples provision where the spouse not of pensionable age; increase in exemption for aged persons not assessed as married couples. Primary Producers. - Twenty per cent. Investment Allowance for new plant and equipment (excluding road vehicles and structural improvements); outright deduction in year of expenditure of cost of constructing or altering fences for animal pestprevention and of fencing areas affected by mineral salt; 10 per cent per annum over ten years special depreciation to apply to contributions towards extension of telephone lines. Forestry and Timber Operations. - Extraction of timber to be regarded as primary production and, as appropriate, an agricultural or pastoral pursuit up to and including the transportation of the logs to the mill; expenditure on mill buildings and housing for employees located in the logging area to be deductible on the same basis as expenditure on timber access roads. Private Companies. - Retention allowance on income other than property income to be increased to 50 per cent of the first £5,000 of distributable income, 45 per cent of the next £5,000 of distributable income and 40 per cent of the balance of distributable income; extension within limits of prescribed period during which a sufficient distribution may be made where an original assessment is issued belatedly, or an amended assessment increasing the taxable income previously assessed is issued. Valuation of Trading Stock. - A fourth basis of valuation of trading stock to be available in relation to certain classes of trading stock. General Business Deductions. - Legal expenses, not exceeding £25; fees for preparation of the taxpayers' income tax return paid to a registered tax agent; payments by a lessee under a lease covenant for unexecuted repairs to be deductible subject to the amount being included as assessable income in the hands of the lessor; bad debts which are a proper business expense; costs incurred in discharging a mortgage; expenditure not in excess of £50 incurred in borrowing money used in the production of assessable income; costs of preparing, registering and stamping lease assignment documents; losses as a result of embezzlement, larceny, defalcation or other form of misappropriation, committed by an employee or agent of the taxpayer and recoveries to be taxed. Losses of Previous Years. - Exclusion from exempt income (for the purpose of calculating losses) of bonus shares paid from certain capital sources. Dividends paid from capital profits and satisfied by the issue of bonus shares to be exempted. {:#subdebate-21-5} #### Estate Duty Existing exemptions of £5,000 to be increased to £10,000 where the estate passes to the widow, widower, children or grandchildren and from £2,500 to £5,000 in other cases, both exemptions to diminish by £1 for each £4 (instead of £1 for each £3 as at present) by which the value of the estate exceeds £10,000 or £5,000 as the case may be. {:#subdebate-21-6} #### Air Navigation Charges Air navigation charges payable by all classes of users to be increased by 10 per cent as from 1st January, 1964. {: .page-start } page 52 {:#debate-22} ### STATEMENT No. 4.- NATIONAL WELFARE FUND ESTIMATES, 1963-64 In the following table, the estimated transactions of the National Welfare Fund in 1963-64 are compared with actual transactions in 1962-63: - {: .page-start } page 53 {:#debate-23} ### RECEIPTS The National Welfare Fund Act 1952 requires an appropriation from Consolidated Revenue to the National Welfare Fund each year of an amount equal to expenditure from the Fund in that year. Accordingly, as expenditure from the Fund in 1963-64 is estimated to -increase by £32,092,000, a corresponding increase is expected in the moneys received by the Fund from Consolidated Revenue. After taking account also of an estimated increase of £24,000 in interest received from the investment of the balance in the Fund, total receipts of the National Welfare Fund in 1963-64 are estimated at £413,469,000, or £32,116,000 more than in 1962-63. {: .page-start } page 53 {:#debate-24} ### EXPENDITURE It is estimated that expenditure from the National Welfare Fund will rise by £32,092,000 to £411,386,000 in 1963-64. Of this increase of £32,092,000, £11,-135.030 arises from the proposals to increase existing benefits s and to introduce new benefits announce.! in the Budget. The proposed increases in age, invalid and widows' pensions, including the increment in invalid pension for each child under 16 years (except the first), in the allowance for the wife of an invalid pensioner, and in the increment in the tuberculosis allowance for each child under 16 years (except the first) are estimated to cost £8,477,000 in 1963-64. The balance of £2,958,000 is the estimated cost in 1963-64 of the proposed new benefits. These are - a widowed mother's allowance; an allowance for the first child under 16 years of a widow; and the proposed extension for student children of all pensioners and recipients of tuberculosis allowance of the benefits payable for children up to the end of the year in which the children attain the age of 18 years. Of the remaining increase of £20,657,000, some £12,057,000 reflects mainly the growth in the number of beneficiaries. The balance of £8,600,000 is an abnormal element arising principally from the occurrence of fourteen child endowment paydays in 1963-64. This will involve an extra twelve-weekly bank credit and an extra four-weekly cheque payment, at a total cost of £8,100,000. There will also be an additional fortnightly cheque payment of widows' pensions costing £500,000. Comments on particular items of expenditure, where the estimate, for 1963-64 varies substantially from actual expenditure in 1962-63 are set out below: - Age and Invalid Pensions. - lt is estimated that in 1963-64 expenditure will rise by £13,299,000. Of this, the proposals to increase pensions and also the allowance for the wife of an invalid pensioner account for £7,553,000. The balance of £5,746,000 is due to the continuing increase in the number of pensioners. Widows' Pensions. - Expenditure on widows' pensions is expected to increase by £4,905,000 in 1963-64. Of this increase, £3,882,000 represents the estimated cost of the proposed increases in the rates of widows' pensions, the proposed allowance for widowed mothers and the proposed allowance for the first child under 16 years of a widow. An additional fortnightly payment by cheque will require £500,000 and the balance of £523,000 is attributable to the increase in the number of pensioners. Child Endowment. - Of the estimated increase of £8,890,000 in 1963-64, an additional twelveweekly bank credit and one additional fortnightly cheque payment will require £8,100,000. The balance is to provide for an increase in the number of endowed children. Unemployement and Sickness Benefits. - Provision is made und:r this heading for expenditure of £7,^ ".J CDO on unemployment benefit and £4,000,000 on sic ness and special benefits. Expenditure in 1962-63 was £10,650,000 on unemployment benefit and £4,007,000 on sickness and special benefits. Hospital Benefits. - Expenditure on hospital benefits is expected to increase by £4,537,000, mainly because of greater bed occupancy as more beds become available and the effect for a full year of the larger benefit for uninsured pensioners in public wards that operated from 1st January, 1963. Pharmaceutical Benefits. - Expenditure in 1963-64 is expected to increase by £1,878,000, mainly due to greater utilization of benefits under the scheme. Pharmaceutical Benefits for Pensioners. - The estimated increase in expenditure of £467,000 under this item in 1963-64 is mainly attributable to an increase in the number of pensioners enrolled in the Pensioner Medical Service. Medical Benefits. - The cost of medical benefits is estimated to rise by £963,000 in 1963-64. The increase is largely attributable to increasing membership of medical benefit organizations and a rise in the average yearly number of services per member qualifying for Commonwealth benefit. Medical Benefits for Pensioners. - It is anticipated that in 1963-64 the cost of this service will rise by £427,000 because of an increase in the number of eligible pensioners and the full year effect of increased fees for participating medical practitioners payable from December, 1962. Milk for School Children. - The increase of £273,000 under this heading is due mainly to the larger numbers of schools and children participating in the scheme. OUTLINE OF COMMONWEALTH SOCIAL AND HEALTH SERVICES, 1963-64. {: .page-start } page 55 {:#debate-25} ### STATEMENT No. 5.- ESTIMATED LOAN TRANSACTIONS, 1963-64 {: .page-start } page 55 {:#debate-26} ### LOAN COUNCIL BORROWING PROGRAMMES, 1963-64 At its meeting in June, 1963, the Loan Council approved a governmental borrowing programme of which £272,000,000 is for State works and housing in 1963-64. The Loan Council also approved a borrowing programme of £120,832,000 for State semi-government and local authorities with programmes in excess of £100,000 in 1963-64, and a programme of £1,950,000 for Commonwealth authorities in the Territories. In addition, the Loan Council decided that no overall limit should be placed on borrowings by authorities for which the State Governments approve programmes of not more than £100,000 in 1963-64. The approved allocations for State works and housing in 1963-64 are compared below with the final allocations for 1962-63. {:#subdebate-26-0} #### Allocations for State Works and Housing The resolution approving the above-mentioned allocation of £272,000,000 for State works and housing was supported by the Commonwealth on the understanding that the States would fulfil certain conditions designed to promote governmental loan raisings in 1963-64. For its part, the Commonwealth undertook - {: type="a" start="i"} 0. to make available to the States the Australian currency equivalent of any new money loans raised for general purposes overseas; {: type="i" start="ii"} 0. to leave to the States, to the extent necessary to complete the borrowing programmes for State works and housing purposes, the whole of the proceeds derived from public loan raisings in Australia (other than the proceeds of borrowings for temporary purposes) after the amounts required to meet encashments of Special Bonds had been deducted; *(in)* to arrange, to the maximum possible extent, for the refinancing of maturing loans that may not be fully converted; and 1. to make monthly advances to the States for the first eight months of the financial year at an annual rate not exceeding £272,000,000, the position then to be reviewed and a tentative determination made, not later than 29th February 1964, of the amount of special loan assistance the Commonwealth may provide from its own resources. Allowing for £5,000,000 which it is estimated will be raised in 1963-64 by way of State domestic raisings, the amount to be met from loan raisings by the Commonwealth would be £267,000,000. Details of the manner in which the State works and housing programmes have been financed since 1951-52 are given in the White Paper "Commonwealth Payments to or for the States, 1963-64", issued for the information of the Parliament in connexion with the Budget. {: .page-start } page 56 {:#debate-27} ### WAR SERVICE LAND SETTLEMENT, 1963-64 It is estimated that payments to the States for War Service Land Settlement, which will again be financed from loan moneys in 1963-64, will amount to £4,225,000 compared with £607,000 in 1962-63., The increase of £3,618,000 is wholly attributable to changes in accounting practices. In fact, it is expected that there will be a decrease of £731,000 in 1963-64 in gross Loan Fund expenditure on acquisition and development and the provision of credit. The reduction is due to the completion of projects that have been under development for some time and an anticipated decrease in the demand for credit. All available holdings have now been allotted in South Australia and Western Australia. The composition of the estimated expenditures in 1963-64 is as follows: - {: .page-start } page 56 {:#debate-28} ### MOUNT ISA RAILWAY PROJECT The Railway Agreement (Queensland) Act 1961 provides for the making of advances of up *<o* £20,000,000 to Queensland towards the cost of improving the Mount Isa-Townsville-Collinsville railway. These advances are repayable by the State, with interest, over a period of twenty years commencing six months after the scheduled completion date of 31st December, 1964. Up to 30th June, 1963 the Commonwealth had provided from Loan Fund an amount of £9,709,000, of which £5,959,000 was advanced in 1962-63. It is estimated that further advances totalling £6,700,000 will be required in 1963-64. {: .page-start } page 56 {:#debate-29} ### SNOWY MOUNTAINS HYDRO-ELECTRIC SCHEME It is estimated that drawings against the International Bank loan for the Snowy Mountains Hydroelectric Scheme will total £13,140,000 in 1963-64. Expenditure on the Scheme to be met from Loan Fund in 1963-64 is estimated to be £13,100,000. {: .page-start } page 56 {:#debate-30} ### DEFENCE EXPENDITURE It is proposed that expenditure on Defence Services to the extent of £62,500,000 will be charged to the Loan Fund in 1963-64. {: .page-start } page 56 {:#debate-31} ### REDEMPTIONS OF MATURING SECURITIES, 1963-64 At 30th June, 1963, Commonwealth Inscribed Stock and Bonds maturing in Australia in 1963-u4 totalled £289,757,000. Details are as follows:- Commonwealth Registered Stock finally maturing in London in 1963-64 totalled £7,069,000 (£stg.5,655,000) at 30th June, 1963, and consisted of 4 per cent. Stock issued in 1939 on behalf of the Commonwealth Government and due to mature on 1st January, 1964. In addition to redemptions of the abovementioned securities, there will be repayments of £8,670,000 (U.S.$19,420,000) to the International Bank, and further amounts will be required to meet the cost of market repurchases, &c, *m* Australia and overseas. The total expenditure from the National Debt Sinking Fund in 1963-64 is estimated to be £90,000,000. It is estimated that the income of the Sinking Fund, which will be available to finance this expenditure, will be £87,116,000 in 1963-64. {: .page-start } page 56 {:#debate-32} ### STATEMENT No. 6. - THE BUDGET IN NATIONAL ACCOUNTS FORM A White Paper setting out estimates of national income and expenditure is presented to the Parliament with the Budget each year. It contains accounts for several sectors of the economy, including " public authorities " (i.e. governments and local and semi-government authorities). In the table below, the Commonwealth Budget is presented in national accounts form. In this form, the receipts and outlay of the Commonwealth are classified into categories which are directly comparable with those for which similar information is provided, in respect of past years, for the entire economy in the White Paper on National Income and Expenditure. The table compares the actual outcome in 1962-63 with the Budget estimates for 1962-63. with the actual outcome in earlier years, and with the prospective outcome for 1963-64 implied by the present Budget estimates. The expenditure items in the Budget are classified in the first instance according to whether they are direct purchases of new goods and services (for current or capital purposes), or whether they are transfer payments. Except where imports are concerned, the former represent a demand for local products and therefore for the employment of labour and other resources, while the latter are transfers of funds (such as interest, pensions, loans, &c.) which do not constitute a direct and immediate demand for resources, although they will do so at least in part eventually. Current direct expenditure on goods and services is classified by function, and the transfer payments are classified into their main types. Of course, persons or institutions who receive these transfers may spend part or all of them on new goods and services; such expenditure will appear in the national accounts for the economy as a whole as demand by the sectors to which those persons or institutions belong. Thus a large proportion of cash benefits to persons results in personal consumption and a large part of grants to States is spent on new goods and services. Loans to States and others for capital works and housing, which appear in the Commonwealth's overall accounts as shown in Statements 1 and 2, and which may be expected to be largely reflected in demand for goods and services by the recipients of the loans, are also shown as outlay in the table. Current receipts are divided between taxation and the other main forms of revenue. The latter include public enterprises income, which is the difference between current receipts and expenditures of public enterprises such as the Post Office, whose financial transactions are included in the Commonwealth Budget. Whether from taxation or other sources, by far the greater part of these receipts reduces the incomes of the public available for other expenditure. The net increase in indebtedness, being the difference between total outlay and current receipts, approximates broadly to the difference between the amount which the Budget outlays add to incomes and the amount by which the current receipt* of the Budget reduce them. The figure for the net increase in indebtedness is reconciled with the total call on borrowings shown in Statements 1 and 2, for the years 1962-63 and 1963-64, in the second reconciliation table appearing at the end of this Statement. {: .page-start } page 57 {:#debate-33} ### BUDGET RESULTS, 1962-63 Net direct expenditure on goods and services from the Budget in 1962-63 totalled £476 million, £5 million more than the Budget estimate, and, after allowance for the accounting change noted in the table, £31 million greater than in 1961-62. Current expenditure on goods and services totalled £7 million more than, and fixed capital expenditure on new assets £2 million less than, the Budget estimate. Cash benefits to persons in 1962-63 amounted to £471 million, £8 million less than the Budget estimate but £19 million greater than in 1961-62. Grants to States, at £428 million, were identical with the Budget estimate and £28 million greater than in 1961-62. Including interest paid, oversea grants and subsidies, total expenditure, at £1,434 million, was £6 million less than the Budget estimate and, after allowance for the accounting change already mentioned, £71 million greater than in 1961-62. After taking account of loans for capital works and housing through the Budget, which at £325 million was £4 million more than the Budget estimate and £6 million greater than in 1961-62, total outlay amounted to £1,779 million. This was £2 million less than estimated in the Budget and, on a comparable basis, £77 million greater than in 1961-62. Total taxation receipts in 1962-63 were £1,441 million, £12 million more than had been estimated in the Budget and £24 million greater than in 1961-62. After allowance for receipts of interest, rent and dividends and the income of public enterprises, the net increase in indebtedness in 1962-63 was £254 million. This was £17 million less than had been estimated in the Budget and £45 million greater than the net increase in indebtedness in 1961- 62. {: .page-start } page 57 {:#debate-34} ### BUDGET ESTIMATES, 1963-64 Net direct expenditure on goods and services from the Budget in 1963-64 is estimated to total £547 million, £71 million more than in 1962-63. Current expenditure on goods and services is estimated to total £422 million, £50 million more than in 1962-63 after allowance for the accounting change noted in the table, and fixed capital expenditure on new assets is estimated at £125 million, £21 million more than in 1962-63 on a comparable basis. Cash benefits to persons in 1963-64 are estimated to total £512 million, an increase of £41 million on 1962-63. Grants to States are estimated to total £457 million in 1963-64, £29 million more than in 1962-63. Oversea grants are estimated to increase by £7 million in 1963-64, to £36 million. Subsidies are estimated at £47 million in 1963-64, £14 million more than in 1962-63. Total expenditure in 1963-64 is estimated at £1,616 million, or £162 million more than in 1962- 63. After taking account of loans for capital works and housing through the Budget to the States and others, which in 1963-64 is estimated at £340 million, or £15 million more than in 1962-63, total outlay is estimated to amount to £1,956 million in 1963-64. This would be an increase of £177 million over total outlay in 1962-63. Total taxation receipts in 1963-64 are estimated at £1,561 million, after allowance is made for concessions granted in the Budget; this would be an increase of £120 million over 1962-63. After taking account of interest, rent and dividends received and the income of public enterprises, the estimated net increase in indebtedness in 1963-64 is £309 million. This would be £55 million greater than the net increase in indebtedness which occurred in 1962-63. {: .page-start } page 58 {:#debate-35} ### RECONCILIATIONS The following tables show how the figures contained in the table above may be reconciled with those given in Statments 1 and 2, and with figures in the White Paper " National Income and Expenditure, 1962-63 ". Debate (on motion by **Mr. Calwell)** adjourned. {: .page-start } page 60 {:#debate-36} ### APPROPRIATION (WORKS AND SERVICES) BILL 1963-64 Message from the Governor-General recommending appropriation for proposed expenditure announced. Bill presented by **Mr. Harold** Holt, and read a first time. {:#subdebate-36-0} #### Second Reading {: #subdebate-36-0-s0 .speaker-009MC} ##### Mr HAROLD HOLT:
Treasurer · Higgins · LP -- I move - >That the bill be now read a second time. I have dealt with the main points of the proposed expenditure on capital works and services for 1963-64 in my Budget speech. I commend the bill to the House. Debate (on motion by **Mr. Crean)** adjourned. {: .page-start } page 60 {:#debate-37} ### BUDGET 1963-64 {: #debate-37-s0 .speaker-009MC} ##### Mr HAROLD HOLT:
HigginsTreasurer · LP -- I present the following papers in connexion with the Budget for 1963-64 for the information of honorable members: - >Estimates of Receipts and Summary of Estimated Expenditure for the year ending 30th June, 1964. Commonwealth Payments to or for the States 1963-64. National Income and Expenditure 1962-63. Government Securities on Issue at 30th June, 1963. Income Tax Statistics for income year 1960-61. Civil Works Programme 1963-64 prepared by the Minister for Works. Ordered to be printed. {: .page-start } page 61 {:#debate-38} ### SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) BILL 1963 Bill presented by **Mr. Harold** Holt, and read a first time. {:#subdebate-38-0} #### Second Reading {: #subdebate-38-0-s0 .speaker-009MC} ##### Mr HAROLD HOLT:
HigginsTreasurer · LP -- I move - >That the bill be now read a second time. This bill is designed primarily to authorize a number of new exemptions from sales tax, and to reduce the rate of tax on certain goods. In addition, it has the effect of simplifying the application of certain existing exemptions, by making them unconditional. Details of the goods affected are set out, for the convenience of honorable members, in a statement which is being circulated. Among the new exemptions granted, the principal item relates to foodstuffs. As is well known, the main foodstuffs for human consumption have been exempt for many years. Action is now being taken to widen this exemption to cover all other foods for human consumption, apart from confectionery, beverages and cordials. Examples of the kind of foods which now become exempt are shown in the explanatory statement. It is hoped that the exemptions now granted will have an appreciably beneficial effect upon the family budget. In response to representations from a number of sources, the existing exemption of paper bags and wrapping materials of a kind used to wrap up and secure goods for marketing or delivery has been extended to include polythene film products and metallic foil. The exemption as now extended will include aluminium foil of a kind used domestically for culinary purposes and for the wrapping of food. An anomaly has been removed by extending the existing exemption of certain classes of containers used in the marketing of non-alcoholic beverages, so as to cover similar containers used in marketing cordials. Provision has also been made for exemption of adhesives for use in the attachment of wooden floorings in buildings. The handling of cargoes on the waterfront is being assisted by a new exemption of fork-lift trucks which are used by shipowners in loading and unloading roll-on roll-off ships. In accordance with the provisions of the Status of Forces Agreement between the United States Government and the Australian Government, certain exemptions are being granted in respect of goods for the use of United States personnel. The existing exemption of goods for the use of certain national safety councils and road safety councils is being widened so as to cover other b ^profit organizations established and maintained to promote safety on roads, in industry or elsewhere. Unconditional exemptions are being granted in respect of tractors, and in respect of base metal materials of a kind used in manufacture and building construction. This action will relieve vendors of such goods of the inconvenience of having to obtain certificates from purchasers in support of claims for the restricted exemptions previously available in respect of these classes of goods. The rate of tax on household goods in the form of silver-plated ware is being reduced from 12* per cent, to *2i* per cent., so as to place them on the same level as other comparable household goods made of earthenware, stainless steel or chromiumplated material. Similarly, the rate of tax on floor rugs and mats made of furskin has been reduced to *2i* per cent, to give them equality of treatment with other domestic floor coverings. This reduction is designed to cover floor rugs and mats made from skins of kangaroos and cattle, which are thus placed in the same sales tax category as sheepskin rugs and mats. Under the existing law, wireless receiving sets bear 25 per cent, tax and this applies regardless of the type of set and the use to which it is put. There are special types of wireless receiving sets which are costly and are used in the conduct of public commercial telecommunications services. It is considered inappropriate that equipment of this kind should be subjected to the 25 per cent, rate of tax, and the tax is being reduced to 121 per cent, on these goods. The bill also provides for some minor restrictions of existing exemptions. At present the law authorizes exemption of "Goods imported from Norfolk Island". This was intended to apply to goods produced in that Territory, but its terms are unqualified and the exemption, in effect, covers goods imported into Norfolk Island and then sent to Australia. This is a loophole which has recently been exploited by a company established at Norfolk Island. Using air services, the company has imported into the island goods such as cameras, transistor radios, jewellery, watches and binoculars and has sent them to customers in Australia who thus obtained them free of tax. The amendment now proposed restricts the. exemption to goods which are the produce or manufacture of Norfolk Island and which are of a kind which would be exempt from sales tax if produced or manufactured in Australia. This amendment is to take effect in respect of goods imported into Australia on and after 14th August, 1963. Another exemption which has been reviewed is that relating to re-imported goods covered by Customs Tariff Item 401. It has been brought to notice that exemption has been obtained under this provision in a number of cases in respect of motor vehicles of Australian manufacture which were exported to places such as Singapore, free of Australian sales tax, and were purchased there, as new vehicles, by or for Australians who were able to bring the goods back into Australia again on a taxfree basis. The exemption was never intended to apply in this manner, and motor vehicles are therefore being specifically excluded from its scope. Action has also been taken to revise the terms of Sales Tax Exemption Item 121, which, in its present terms, applies to cathode ray tubes covered by Customs Tariff Item 181 (j) (1.). When the exemption item was so drafted, it applied only to television picture tubes which were subject to a high duty. The relevant tariff item has, however, since been widened to cover certain other cathode ray tubes which bear a low duty only. The sales tax exemption item is now being amended to ensure that it applies only to television picture tubes as intended. Other provisions in the bill consist of drafting amendments designed to eliminate redundant matter and to bring references in the sales tax law up to date. As announced in the Budget speech, the various amendments come into effect to-morrow, 14th August, with some few exceptions in which minor concessions have been granted in anticipation of amendment of the law, and for which an earlier date of commencement is specified in the bill. The estimated loss of revenue involved in these amendments is £12,000,000 for a full year and £9,400,000 for 1963-64. I commend the bill to honorable members. Debate (on motion by **Mr. Crean)** adjourned. {: .page-start } page 62 {:#debate-39} ### SALES TAX ASSESSMENT BILL (No. 5) 1963 Bill presented by **Mr. Harold** Holt, and read a first time. {:#subdebate-39-0} #### Second Reading {: #subdebate-39-0-s0 .speaker-009MC} ##### Mr HAROLD HOLT:
Treasurer · Higgins · LP -- I move - >That the bill be now read a second time. This bill relates solely to the incidence of sales tax insofar as it is payable at the customs in respect of the importation of goods by users or consumers, or by merchants for sale by retail. In such circumstances, the sales tax is collected by the Department of Customs and Excise, and it is necessary to ensure that, in many respects, the sales tax law and procedures are kept in conformity with the law and procedures relating to customs duty. The purpose of this bill is to achieve such uniformity having regard to certain recent developments. Section 4 (2.) of the Sales Tax Assessment Act (No. 5) 1930-1953 specifies the basis upon which tax is to be paid under that act. In relation to goods re-imported into Australia after having been sent overseas for repairs with the approval of the Minister for Customs and Excise, it is specially provided in that section that the taxable sale value of the goods upon their re-importation shall be the sum of the value for duty of the goods and the duty payable thereon. This provision has become inoperative because of a change in customs procedure whereby goods to which the provision should apply may now be sent out of Australia for repairs without the approval of the Minister for Customs and Excise. It is proposed to amend the sales tax law so that the original intention may continue to be carried into effect although the Minister's approval does not now have to be obtained. The proposed amendment is designed also to effectuate the original intention that the taxable sale value in these cases shall be determined by reference to the value of repairs only, and not the value of the goods as a whole. A further purpose of the bill is to authorize refunds of tax paid at the customs on goods which are subsequently rejected as unsatisfactory by the importer and are subsequently destroyed under customs supervision. This follows upon a recommendation of the Customs Co-operation Council, of which Australia is a member, that all member nations should refund duties and taxes paid on such goods. It is proposed that this sales tax amendment shall be effective on and from 1st January, 1963, in order to maintain uniformity with the corresponding provision in the customs duty law which operates from that date. Provision is also included in the bill to give legal authority for the temporary importation of goods into Australia, free of sales tax, under the carnet system, which has international application, and is the subject of a customs convention to which Australia has subscribed. The carnet is a document which serves, in effect, as a passport for goods temporarily imported into a country by tourists or other visitors, and which eliminates the need for formal import and export entries in relation to the goods. Goods covered by carnets are admitted free of duty and sales tax provided that approved sponsoring organizations have lodged satisfactory securities for payment of duty or tax in the event of failure of the importer to export the goods within the prescribed period of time. This system is not new, but the existing provisions of the sales tax law regarding temporary admission of goods are not adequate to cover the system as it has now developed. Similar enabling provisions are to be introduced into the Customs Act Apart from the foregoing matters, the bill merely includes certain drafting amendments which are designed to eliminate obsolete provisions and to bring up to date an obsolete reference to the Minister of State for Trade and Customs. I commend the bill to honorable members. Debate (on motion by **Mr. Crean)** adjourned. {: .page-start } page 63 {:#debate-40} ### STATES GRANTS (ADDITIONAL ASSISTANCE) BILL (No. 2) 1963 Bill - by leave - presented by **Mr. Harold** Holt, and read a first time. {:#subdebate-40-0} #### Second Reading {: #subdebate-40-0-s0 .speaker-009MC} ##### Mr HAROLD HOLT:
Treasurer · Higgins · LP -- I move - That the bill be now read a second time. The purpose of this bill is to authorize payment to the States in 1963-64 of an additional assistance grant amounting to £20,000,000. As with the similar grants made to the States in 1961-62 and 1962-63, it is proposed that this payment should take the form of a non-repayable interest-free grant additional both to the financial assistance grants being made to the States under the States Grants Acts of 1959 and 1962 and the State works and housing programmes for which the Commonwealth has undertaken to arrange finance in the current financial year. At the Premiers' Conference and the Australian Loan Council meeting held in June last, the Commonwealth announced that, in addition to supporting a borrowing programme of which £272,000,000 is for State works and housing in 1963-64, it would make available to the States a non-repayable additional assistance grant of £20,000,000 for expenditure on employment-giving activities. In offering again a grant of this type to the States, the Commonwealth Government had in mind that it would enable the States to provide jobs in areas where employment opportunities were not as readily available as elsewhere or where more general measures to sustain and improve employment conditions might not be fully effective. The Commonwealth made it clear that, providing the over-riding purpose of the grant was kept in mind, it would have no objection if a State passed portion of the moneys allocated through its Consolidated Revenue Fund. It was not intended that the way in which a particular State used its grant should affect, adversely or favorably, its position in other respects. The State Premiers accepted the Commonwealth's offer and agreed to consult with the Commonwealth Department of Labour and National Service as to particular directions in which this money should be expended. The total grant of £20,000,000 is to be divided between the States in proportion to their borrowing programmes for works and housing in 1962-63. The amounts to be paid to individual States, which are shown in the schedule to the bill, are as follows:- With the expected increase in the financial assistance grants of £14,100,000 and the increase of £17,000,000 in the borrowing programme for State works and housing, the addition of £2,500,000 to this grant for 1963-64 will make available to the States in the current financial year nearly £34,000,000 more than last year from Commonwealth sources. Honorable members will appreciate the desirability of commencing payments of this grant at the earliest possible date. I trust therefore, that the legislation will be dealt with as expeditiously as possible. I commend the bill to honorable members. Debate (on motion by **Mr. Crean)** adjourned. {: .page-start } page 64 {:#debate-41} ### SALES TAX BILLS Suspension of Standing Orders. {: #debate-41-s0 .speaker-009MC} ##### Mr HAROLD HOLT:
HigginsTreasurer · LP -- by leave - I move - >That, in relation to the proceedings on any sales tax bills, so much of the Standing Orders be suspended as would prevent - > >the introduction and the first readings of the bills together; > >one motion being moved and one question being put in regard to, respectively, the second readings, the committee's report stage, and the third readings, of all the bills together, and > >the consideration of all the bills as a whole together in a committee of the whole. That motion sounds rather complicated, and I offer some words of explanation. Consequent upon the amendment of the Standing Orders the need arises for some action to be taken in the House to clear the way for the introduction at any time of sales tax bills together in order to effect any alteration of sales tax rates which may be proposed. The House will recall that in the past the procedure was, first, to propose a resolution in the Committee of Ways and Means and, subsequently, to order that nine bills be brought in to carry out the resolution. In the meantime, by means of a contingent notice of motion, the Standing Orders were suspended to enable the nine bills to be brought in and passed through their remaining stages together. The House has followed this procedure for many years and has always found it convenient. Under the new financial procedures the resolution will be dispensed with and the initiating action will be the introduction of nine bills. Standing Order No. 291 permits these bills to be introduced without notice, but it will be necessary to suspend the Standing Orders to enable the bills to be brought in and dealt with together. The motion I have now moved will cover the position for the remainder of this session. Hereafter I hope to move a similar motion at the commencement of every session, or at least at the commencement of those sessions during which I have the privilege to be Treasurer, and by so doing avoid the speculation that could result if the motion were moved later in the year. Question resolved in the affirmative. {: .page-start } page 64 {:#debate-42} ### BILLS RETURNED FROM THE SENATE The following bills were returned from the Senate without amendment: - United States Naval Communication Station Agreement Bill 1963. Loan (Australian National Airlines Commission) Bill 1963. Loan (Qantas Empire Airways Limited) Bill 1963. Pay-roll Tax Assessment Bill 1963. Income Tax and Social Services Contribution Assessment Bill 1963. {: .page-start } page 64 {:#debate-43} ### ASSENT TO BILLS Assent to the following bills reported: - Appropriation Bill (No. 2) 1962-63. Appropriation (Works and Services) Bill (No. 2) 1962-63. Public Works Committee Bill 1963. Processed Milk Products Bounty Bill 1963. Insurance Bill 1963. Commonwealth Inscribed Stock Bill 1963. Acts Interpretation Bill 1963. Australian Antarctic Territory Bill 196). Christmas Island Bill 1963. Cocos (Keeling) Islands Bill 1963. Heard Island and McDonald Islands Bill 1963. Seat of Government (Administration) Bill 1963. Supply Bill 1963-64. - Supply (Works and Services) Bill 1963-64. Papua and New Guinea Bill 1963. Evidence Bill 1963. Parliamentary Papers Bill 1963. United States Naval Communication Station Agreement Bill 1963. Loan (Australian National Airlines Commission) Bill 1963. Loan (Qantas Empire Airways Limited) Bill 1963. Pay-roll Tax Assessment Bill 1963. Income Tax and Social Services Contribution Assessment Bill 1963. House adjourned at 9.43 p.m. {: .page-start } page 65 {:#debate-44} ### ANSWERS TO QUESTIONS {:#subdebate-44-0} #### Ampol Petroleum Limited {: #subdebate-44-0-s0 .speaker-K8B} ##### Mr Curtin: n asked the Treasurer, upon notice - {: type="1" start="1"} 0. Is he able to say where Ampol Petroleum Limited is registered and whether it is a 100 per cent. Australian company? 1. If this company is not wholly Australian, can he say (a) whether the major shareholders are Australian citizens, (b) what percentage of the ordinary shares are held by Australian citizens and (c) how many ordinary shares are held in (i) America and (ii) Britain? 2. Has he any information as to the aggregate amount of Australian capital invested in this company? {: #subdebate-44-0-s1 .speaker-009MC} ##### Mr Harold Holt:
LP -- The answer to the honorable member's questions is as follows: - 1, 2 and 3. Published reports indicate that Australian Motorists Petrol Company Limited was incorporated in New South Wales on 29th March, 1936, and that the name of the company was changed to Ampol Petroleum Limited in 1948. Public information regarding shareholdings in the company is available in the office of the Registrar of Companies in Sydney. {:#subdebate-44-1} #### Australian Armed Services {: #subdebate-44-1-s0 .speaker-RK4} ##### Mr Hayden:
OXLEY, QUEENSLAND n askedthe Minister for Defence, upon notice - {: type="1" start="1"} 0. What has been the number of (a) entries into and (b) discharges from each of the three armed services during each of the past five years? 1. What has been the average age of (a) entries into and (b) discharges from each of the three armed services during each of these years? 2. What was the average term of service of the members of each of the three armed services during each of the same years? {: #subdebate-44-1-s1 .speaker-KEN} ##### Mr Fairhall:
Minister for Supply · PATERSON, NEW SOUTH WALES · LP -- The Acting Minister for Defence has supplied the following information: - 1. (a) Total entries into the services - {: type="a" start="b"} 0. Total discharges from the services - 2. (a) Average age of personnel entering the services (other than officers and cadets) - {: type="a" start="b"} 0. Average age of personnel leaving the services (other than officers and cadets) - {: type="1" start="3"} 0. Average period of service in years of personnel (other than officers and cadets) leaving the service during the years shown - {: #subdebate-44-1-s2 .speaker-KEE} ##### Sir Wilfrid Kent Hughes: asked the Minister for Defence, upon notice - {: type="1" start="1"} 0. Would it not be advisable for more of the equipment required for our armed services to be manufactured in Australia? 1. Even if costs were higher, would this not be offset by greater security resulting from technical know-how and ability to supply if outside sources of supply were cut? {: #subdebate-44-1-s3 .speaker-KEN} ##### Mr Fairhall:
LP -- The Acting Minister for Defence has supplied the following information: - 1 and 2. It is the policy of the Government to foster and develop local production of equipment for our armed services and a substantial proportion is made in Australia. Since 1951 an amount of £59,700,000 has been spent on the expansion of production capacity and the replacement and modernization of existing facilities. The advantages of local production to which the honorable member refers are appreciated, but the increasing sophistication and complexity of weapon systems and equipment for the services present formidable technical problems and involve high costs. The economics of local production have therefore to be carefully weighed in relation to the best use of the moneys available for defence. Furthermore, the time factor is all important in view of the requirement for mobile, well equipped forces at a high state of readiness. All factors are taken into account and new equipment items for the services are carefully examined to assess the practicability of manufacture in Australia. {: #subdebate-44-1-s4 .speaker-6V4} ##### Mr Daly:
GRAYNDLER, NEW SOUTH WALES y asked the Minister for Defence, upon notice - How many (a) men and (b) women, of all ranks, are serving at this date in the (i) Navy, (ii) Army and (iii) Air Force? {: #subdebate-44-1-s5 .speaker-KEN} ##### Mr Fairhall:
LP -- The Acting Minister for Defence has supplied the following information: - The present numbers of men and women serving in the permanent forces of the three services are - Church of England in Australia. {: #subdebate-44-1-s6 .speaker-6U4} ##### Mr Whitlam:
WERRIWA, NEW SOUTH WALES m asked the Prime Minister upon notice - {: type="1" start="1"} 0. Why have territorial ordinances not been passed to supplement the Church of England in Australia Constitution Acts passed by all the States in 1960 and 1961? 1. Has his attention been drawn to a written reply given by the Primate at the first general synod of the Church in May, 1962, stating that for many months past, even years, he, as chairman of the Standing Committee, together with other members of the committee, had made serious efforts to have these ordinances passed by referring the matter to the highest authorities in Canberra and that ne had personal correspondence both with the Prime Minister and the Solicitor-General? 2. Over what period has the Primate corresponded with him concerning such legislation? {: #subdebate-44-1-s7 .speaker-N76} ##### Sir Robert Menzies:
LP -- The answer to the honorable member's questions is as follows: - I received a letter from the Primate of the Church of England early in 1961 and there were subsequent communications at my suggestion between the Primate and the Solicitor-General. The matter of the drafting of Territory ordinances is in hand, and the Attorney-General's Department is in communication with the Church authorities in this regard. {:#subdebate-44-2} #### Immigration: Overseas Remittances {: #subdebate-44-2-s0 .speaker-1V4} ##### Mr Cairns:
YARRA, VICTORIA s asked the Minister for Immigration, upon notice - {: type="1" start="1"} 0. What is the limit upon sustenance payments or other remittances that can be sent overseas by migrants to members of their families? 1. What was the total amount of these sustenance payments or other remittances sent overseas during the past year? 2. Is it considered that the placing of a limit upon sustenance payments sent overseas or other remittances actually reduces the amounts sent, or is such a limit, on the average, above the amounts actually sent? 3. Have any representations been made to the Government or the Reserve Bank that limits upon sustenance payments or other remittances should be imposed or lowered? 4. If so, what is the intention of the Government in this matter? {: #subdebate-44-2-s1 .speaker-KCK} ##### Mr Downer:
Minister for Immigration · ANGAS, SOUTH AUSTRALIA · LP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. Banks are authorized by the Reserve Bank to sell to any one remitter who is a resident of Australia the appropriate foreign currency up to the equivalent of £A100 per month for payments to persons permanently resident outside Australia for bona fide sustenance purposes and other compassionate reasons. Transfers may be effected on this basis up to three months in advance. The Reserve Bank is also prepared to approve remittances for greater amounts, on the basis of consideration of individual applications, in bona tide cases. 1. Details of remittances from Australia by migrants are not available. However, the Commonwealth Statistician's publication " The Australian Balance of Payments 1957-58 to 1961- 62 " shows that personal donations remitted overseas during the year ended 30th June, 1962, were estimated at £13,900,000. A large proportion of this amount is thought to represent remittances by migrants. 2. The arrangements referred to in (1) above are designed to prevent unauthorized transfers of capital abroad rather than to limit the amount of remittances for bona fide sustenance purposes. Although statistics of individual remittances are not compiled, it can be said that the amount of £100 per month referred to in (1) above is much higher than the average amount for which applications to remit are made. 3. Yes. 4. No need is seen for alteration of the existing arrangements. {:#subdebate-44-3} #### Taxation {: #subdebate-44-3-s0 .speaker-JAG} ##### Mr Crean:
MELBOURNE PORTS, VICTORIA n asked the Treasurer, upon notice - {: type="1" start="1"} 0. What number of persons has been subject to income tax in each of the financial years since the introduction of uniform taxation? 1. What was the percentage of taxpayers to total population in each of those years? 2. What was the aggregate amount of the actual income of all taxpayers in those years, and what percentage did it bear to total personal income for those years? 3. What was the aggregate amount of income tax on individuals in each year, and what proportion did it bear to total Federal revenue (other than business undertakings) for the year? 4. What was the aggregate amount of income tax on companies for each of those years, and what proportion did it bear to (a) total corporate income for the year and (b) total Federal revenue for the year? {: #subdebate-44-3-s1 .speaker-009MC} ##### Mr Harold Holt:
LP -- The information requested by the honorable member has been supplied by the Commonwealth Statistician and is set out in the following tables: - {:#subdebate-44-4} #### Canberra to Tumut Road {: #subdebate-44-4-s0 .speaker-JYV} ##### Mr Fuller:
HUME, NEW SOUTH WALES r asked the Prime Minister, upon notice - {: type="1" start="1"} 0. Has he, as a resident of the growing city of Canberra, had drawn to his attention the advantages which would accrue to the Federal Capital from the construction of the proposed Tumut-Canberra road? 1. Is it a fact that the road would also benefit the important centre of Tumut? 2. What action does the Government propose to take to carry out a project of such undoubted advantage to his place of residence and my electorate? {: #subdebate-44-4-s1 .speaker-N76} ##### Sir Robert Menzies:
LP -- The answers to the honorable member's questions are as follows: - 1, 2 and 3. There is little I can usefully add to the reply I gave to the honorable member on 1st May, 1962 ("Hansard", page 1812). The Premier of New South Wales recently suggested to me that the Commonwealth might join with that State in making a joint assessment of the possible routes, and I have indicated to him that the Commonwealth would be prepared, without commitment, to provide technical assistance for such a joint study. {:#subdebate-44-5} #### Public Service {: #subdebate-44-5-s0 .speaker-K6T} ##### Mr Costa:
BANKS, NEW SOUTH WALES a asked the Prime Minister, upon notice - >What was the labour turnover in the Commonwealth Public Service during the year ended on 31st March, 1963? {: #subdebate-44-5-s1 .speaker-N76} ##### Sir Robert Menzies:
LP -- The answer to the honorable member's question is as follows: - >The Public Service Board keeps detailed records of permanent officers only and does not compile statistics of the turnover in temporary employees. During the year ended 31st March, 1963, permanent officers numbered 108,800 on average. In the same year, 4,250 permanent officers resigned and 4,283 left the service for other reasons (marriage, invalidity, retirement, death, &c). {:#subdebate-44-6} #### Naturalization {: #subdebate-44-6-s0 .speaker-6V4} ##### Mr Daly: y asked the Minister for Immigration, upon notice - {: type="1" start="1"} 0. How many persons eligible for naturalization at this date have not yet applied for naturalization? 1. What are the nationalities of persons in this category, and what is the number in each case? {: #subdebate-44-6-s1 .speaker-KCK} ##### Mr Downer:
LP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. It is estimated that as at 31st December, 1962, 244,972 persons were eligible to apply for naturalization but had not lodged applications. The figure does not include persons of Asian or other non-European race, but the number of these to apply but who have not done so, would be very small. Of the estimated number of 244,972 eligible aliens who had not applied for naturalization, approximately 49,000 would be children under the age of sixteen years who, as a rule, could not apply for naturalization in their own right but would be included in the application of their parents. 1. The following table shows the number of persons of each nationality who were eligible to apply for naturalization as at 31st December, 1962, but had not done so: - {:#subdebate-44-7} #### Broadcasting and Television. (Question No. 23.) {: #subdebate-44-7-s0 .speaker-K6T} ##### Mr Costa: a asked the Postmaster-General, upon notice - >How many (a) television licences and (b) broadcast listeners' licences were issued as at the 30th June in each of the years 1960, 1961 and 19627 {: #subdebate-44-7-s1 .speaker-KCA} ##### Mr Davidson:
Postmaster-General · DAWSON, QUEENSLAND · CP -- The answer to the honorable member's question is as follows: - {:#subdebate-44-8} #### Postal Department (Question No. 36.) {: #subdebate-44-8-s0 .speaker-K6T} ##### Mr Costa: a asked the Postmaster-General, upon notice - >What was the labour turnover in the (a) telephone, (b) post office and (c) telegraph branches of his department during the year ended on the 31st March, 1963? {: #subdebate-44-8-s1 .speaker-KCA} ##### Mr Davidson:
CP -- The answer to the honorable member's question is as follows: - {:#subdebate-44-9} #### (Question No. 38.) {: #subdebate-44-9-s0 .speaker-6V4} ##### Mr Daly: y asked the Postmaster-General, upon notice - {: type="1" start="1"} 0. What amount has been spent during the last twelve months on repairs and renovations of post offices in the following suburbs: - Newtown, Marrickville, Summer Hill, Lewisham, Dulwich Hill, Petersham, Enmore and Erskineville? 1. How many non-official post offices are located in these districts and where are they situated? {: #subdebate-44-9-s1 .speaker-KCA} ##### Mr Davidson:
CP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. Extensions to the Marrickville post office were completed at a cost of £18,311 and a further £952 spent on maintenance. Repairs and renovations were carried out on post offices at Newtown. £1,742, Summer Hill, £160, and Erskineville, £2,279. Requisitions for £2,310 and £2,130 were placed for repairs and renovations to the post offices at Dulwich Hill and Enmore respectively. No building work was carried out at Lewisham or Petersham. 1. The four non-official offices in these districts are located at 398 Illawarra-road, Marrickville, 245* Wardell-road, Marrickville, 25 Railway-terrace, Lewisham and 68 McDonald-street, Erskineville, respectively. {:#subdebate-44-10} #### Telephone Services. (Question No. 39.) {: #subdebate-44-10-s0 .speaker-6V4} ##### Mr Daly: y asked the Postmaster-General, upon notice - {: type="1" start="1"} 0. How many telephone applications are outstanding in the following areas: - (a) Newtown, (b) Marrickville, (c) Dulwich Hill, (d) Lewisham, (e) Petersham, (f) Summer Hill and (g) Erskineville? 1. What is the longest period for which applicants have been waiting for the provision of a telephone service in these areas? {: #subdebate-44-10-s1 .speaker-KCA} ##### Mr Davidson:
CP -- The answer to the honorable member's questions is as follows: - >Applications for telephone services which have been deferred because of plant considerations and the oldest application in the suburbs mentioned are as follows: - (Question No. 40.) {: #subdebate-44-10-s2 .speaker-6V4} ##### Mr Daly: y asked the Postmaster-General, upon notice - {: type="1" start="1"} 0. How many applications for telephones are outstanding in (a) each State and (b) Australia? 1. What is the (a) longest and (b) average period of waiting for the provision of a telephone service? {: #subdebate-44-10-s3 .speaker-KCA} ##### Mr Davidson:
CP -- The answers to the honorable member's questions are as follows: - 1. (a) Applications for telephone services out standing: - >New South Wales .. 20,135 > >Victoria .. .. 11,045 > >Queensland . . . . 708 > >South Australia . . . . 3.402 > >Western Australia .. 1,051 > >Tasmania 513 > >Commonwealth . . . . 36,854 2. (a) Seven years, (b) The average delay in meeting telephone applications is not available, but 46 per cent, of the present deferred requests are less than six months standing. 70 per cent, are less than one year old and 87 per cent, are less than two years old. {:#subdebate-44-11} #### Broadcasting. (Question No. 47.) {: #subdebate-44-11-s0 .speaker-JZX} ##### Mr Collard:
KALGOORLIE, WESTERN AUSTRALIA d asked the PostmasterGeneral, upon notice - {: type="1" start="1"} 0. Is the aerial power of the National Broadcasting Station at Geraldton only 2.000 watts? 1. If so, is this why people in outlying areas of Geraldton are unable to obtain good reception? 2. Has his department any firm proposals for increasing the strength of this station: if so, when is the increase expected to take place? 3. If there is no firm proposal at this stage, will he give the matter his urgent attention with a view to bringing about an increase in power as early as possible? {: #subdebate-44-11-s1 .speaker-KCA} ##### Mr Davidson:
CP -- The answers to the honorable member's questions are as follows: - . {: type="1" start="1"} 0. Yes. 1. Not really. Because the propagation characteristics of the terrain in the area are relatively poor, an increase in the power of station 6GN Geraldton would not result in any appreciable extension of service. In addition, because of the limited number of frequencies available, the frequency used by station 6GN is shared wilh another broadcasting station in Victoria, with the result that the effective service of station 6GN is limited. 2. No. 3. The problem of the improvement of service to a number of areas in Western Australia, including the area in question, was carefully considered some little time ago. It was decided that the best solution was to establish a new station in an area of good radio propagation and to this end a station is now being established at Dalwallinu. When this station commences operation, the service in the areas outlying from Geraldton will be considerably improved. Saw-milling. (Question No. 8.) {: #subdebate-44-11-s2 .speaker-KID} ##### Mr Luchetti:
MACQUARIE, NEW SOUTH WALES i asked the Minister for Labour and National Service, upon notice - >Can he say how many sawmills there were and how many employees were engaged in the sawmilling industry in each State and Territory during the years 1922, 1942 and 1962? {: #subdebate-44-11-s3 .speaker-009MA} ##### Mr McMahon:
Minister for Labour and National Service · LOWE, NEW SOUTH WALES · LP -- The answer to the honorable member's question is as follows: - >I am informed by the Commonwealth Statistician that the available statistics of numbers of sawmills and the number of employees (including working proprietors) engaged in the sawmilling industry in or near to the years 1922, 1942 and 1962 for each State of Australia were as shown in the attached table. Comparable statistics are not available for the Northern Territory or the Australian Capital Territory. {:#subdebate-44-12} #### Waterfront Employment. (Question No. 13.) {: #subdebate-44-12-s0 .speaker-KDV} ##### Mr Jones:
NEWCASTLE, VICTORIA s asked the Minister for Labour and National Service, upon notice - {: type="1" start="1"} 0. On how many ships have waterside Workers been required to work on public holidays in the port of Newcastle over the past five years? 1. What was, in each case, the name of the ship, the date it was worked and the type of cargo handled? {: type="1" start="3"} 0. In which cases were the ships in port on a day prior to a holiday, and were they worked on that day? 1. How many men were required to work on the holiday and the day prior to the holiday in each instance? {: #subdebate-44-12-s1 .speaker-009MA} ##### Mr McMahon:
LP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. 104. 2, 3 and 4. - {:#subdebate-44-13} #### Concilia! San and Arbitration. (Question No. 15.) {: #subdebate-44-13-s0 .speaker-BV8} ##### Mr Calwell: l asked the Minister for Labour and National Service, upon notice - {: type="1" start="1"} 0. Will he state whether Messrs. L. R. Hilton, N. A. Jensen, J. W. Geurts, B. J. Ashton, C. H. Glaubitz or K. Davis made application for financial assistance under Regulation 138 made under the Conciliation and Arbitration Act to meet the cost of their litigation against the Pulp and Paper Workers Federation of Australia? 1. If so, were any of the applications approved? 2. If any of the applications were approved, what amounts were granted in each case? {: #subdebate-44-13-s1 .speaker-009MA} ##### Mr McMahon:
LP -- The answer to the honorable member's questions is as follows: - 1, 2, and 3. **Mr. L.** R. Hilton's application was made under section 159 of the Conciliation and Arbitration Act. for an inquiry into alleged irregularities in connexion with the election for certain offices in the federation. When this matter came on for hearing in June, 1961. it was adjourned to a date to be fixed by agreement of the parties. This adjournment permitted negotiations between the parties in respect of a new set of rules. On 3rd September, 1962, representatives of the parties informed the Commonwealth Industrial Court of the terms of settlement that had been reached. These terms included an agreed amount for costs of the applicant at 100 guineas. Regulation 138 of the Conciliation and Arbitration Regulations has no application to an inquiry such as this, but my colleague, the AttorneyGeneral, may, in accordance with section 168 of the act, authorize payments by the Commonwealth for the whole or part of the costs and expenses of an inquiry. To my knowledge no such payments have been authorized. A question of law was subsequently submitted to the Commonwealth Industrial Court by the Industrial Registrar following a request by members of the federation for the election for some positions in the federation to be conducted under section 170 of the act. On 30th October, 1961, the representatives of the parties sought an adjournment for the same reasons as I have already outlined. Counsel announced his appearance as "for one of the requestors Leslie Hilton". On 3rd August, 1962, the Registrar sought leave to have this reference withdrawn in view of the fact that the organization had filed a new set of rules. Regulation 138 has no application to a case such as this. On 6th February, 1963, Kevin Davis sought, and was granted, a rule to show cause why an order should not be made pursuant to section 140 of the act, declaring certain rules of the federation invalid. An application was made on behalf of Davis for financial assistance under regulation 138. On 18th February, 1963, J. W. Geurts, B. J. Ashton, J. Jensen and C. H. Glaubitz also sought and were granted a rule to show cause why an order should not be made pursuant to section 140 of the act declaring certain rules of the organization invalid and an application was made on their behalf too for financial assistance under regulation 138. These two last mentioned actions were heard together before the Court and in a majority decision handed down on 25th March, 1953, the rules to show cause were discharged with costs The applications for financial assistance in respect of the matters concerning Davis on the one hand and Geurts, Ashton, Jensen and Glaubitz on the other were granted but. as I am informed, no bill of costs has been received from the solicitors acting on their behalf. {:#subdebate-44-14} #### Commonwealth Authorities - Classification of Officers. (Question No. 20.) {: #subdebate-44-14-s0 .speaker-K9M} ##### Mr L R Johnson:
HUGHES, NEW SOUTH WALES son asked the Minister representing the Minister for National Development, upon notice - {: type="1" start="1"} 0. Did the provisions of Public Service Board Circular No. 1961/35 state that, in all departments of the Commonwealth Public Service, all designated engineers receiving salaries up to £2,748 (S.) were to be placed into new engineer class positions, the class being automatically determined by the individual's previous salary level? 1. Is the Minister able to state whether the Australian Atomic Energy Commission, through an order issued in September, 1962, introduced engineer class designations for a number of the staff of its Research Establishment engaged on engineering work of a non-experimental nature, and subsequently made salary adjustments retrospective to the same date as applied to the adjustments made for engineers in the Commonwealth Public Service? 2. If so, was the new designation of each engineer determined on the same basis as that used in the Public Service departments for the determination of the new positions for their engineers, namely the previous salary level? 3. If a different basis was used by the Atomic Energy Commission, how many engineers received a lower salary increase than they would have received if the same basis as that used for the Public Service departments had been employed? 4. If the retrospective salary adjustments referred to in question 2. suggest that the introduction of engineer class designations by the Atomic Energy Commission did not arise from a change in the nature of the work being performed by its engineers, what is the reason for adopting a different basis for salary adjustments to that adopted within the Public Service departments? 5. Is the Minister able to state how many engineers employed by the Snowy Mountains Hydro-electric Authority are now receiving, following the implementation of the professional engineers' awards, lower salaries than they would have received if the authority had adopted a basis for the placement of engineers into new positions identical to that adopted within the Public Service departments? 6. If the answers to questions 4. and 6. reveal Inconsistencies in the methods used for determining salary adjustments for individual engineers within the Atomic Energy Commission and the Snowy Mountains authority, which are both under the administrative control of the Minister, what are the reasons for the adoption of the methods leading to these inconsistencies? 7. Is the Minister able to state whether the Atomic Energy Commission, following an offer made by it on 7th December, 1962, is now paying increased salaries to its experimental officers, and, if so, were the increases based solely on the previous salary levels of the individual officers? 8. Are any officers of the Atomic Energy Commission, now designated engineer, but designated experimental officer prior to September, 1962, receiving a lower salary than they would be receiving if they had not been re-designated? 9. If so, how many officers are in this position, and as the new salaries for experimental officer classes are less than those for corresponding engineer classes, what is the reason for this apparent anomaly? {: #subdebate-44-14-s1 .speaker-KDT} ##### Mr Fairbairn:
Minister for Air · FARRER, NEW SOUTH WALES · LP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. Public Service Board Circular 1961/35 dealt with the re-organization of engineering establishments of departments of the Public Service. It provided that officers who were qualified engineers, and in addition who occupied positions of engineer, would be placed in the new class and salary structure promulgated in the circular. The circular also indicated that the Public Service Board would re-classify engineering officers in specified salary groups to particular levels in the new classifications and salary structure and that qualified occupants of such offices would be deemed, pursuant to section 29 (4.) of the Public Service Act, to be the occupants of the offices as re-classified, lt is emphasized that the Public Service Board Circular 1961/35 dealt with types of positions requiring professional engineering qualifications in existence prior to the date of the circular and for that matter prior to the issue of Determination No. 19 of 1961 in June, 1961. Circular No. 1961/35 also stated- " It should be noted that the Circular deals primarily with departmental establishments of positions specifically designated " Engineer ". It does not, for example, deal with those positions of Experimental Officer which may be held to involve the performance of engineering duties. Such problems will be dealt with later." {: type="1" start="2"} 0. Prior to September, 1962, persons were not recruited to the service of the commission as engineers. Professional officers were recruited to the service of the commission as research officers or experimental officers and they were paid rates of salary in accordance with determinations relating to these categories of employment. The Australian Atomic Energy Commission, however, had been concerned with a number of officers who had been paid rates of salary applicable to research officers and experimental officers although they were engaged on work which was not research or experimental in nature. During the course of hearings before the Public Service Arbitrator on claims submitted by the staff associations in respect of experimental officers and in particular those claims seeking new salary rates for experimental officers possessing professional engineering qualifications, the commission gave an undertaking to the Public Service Arbitrator that it would examine all positions of experimental officer with a view to isolating and separating out from that class those positions which required professional engineering qualifications. This was done and at the same time, the commission similarly reviewed the research officer group. The interested professional associations were informed of the positions to be designated engineer, and they were invited to express their views. No objection was raised by the associations to any of the positions which had been identified as engineering positions. In June, 1962, the designation " Engineer " was introduced into the terms and conditions of the commission for the first time in accordance with section 22 of the Atomic Energy Act. In September, 1962, after a study of the future needs of the commission in relation to positions of a non-research and nonexperimental character, the commission approved the creation of a number of positions which included, for the first time, positions designated engineer. These positions were classified on the basis of the functions and responsibilities actually required at that time, i.e. September, 1962. The commission used as its standard of reference for classification purposes, the dicta of the Conciliation and Arbitration Commission in its two decisions re professional engineers. The Australian Atomic Energy Commission was not a respondent in the engineers' case. However, the Atomic Energy Commission did pay certain special allowances retrospectively to all officers who were promoted to engineering positions in September, 1962. 3, 4 and 5. As indicated in the answer to question 2, the commission fixed the classification for each of the positions of engineer introduced for the first time in September, 1962, on the basic and generally accepted grounds of the value of the work - functions, responsibilities, &c. - required of the occupants of the position at the time of classification. 6 and 7. It is necessary to appreciate that the Snowy Mountains Hydro-electric Authority was a respondent to the engineering claims which were determined by the Commonwealth Conciliation and Arbitration Commission. Moreover, unlike the Australian Atomic Energy Commission, the authority was dealing with engineering positions so denned and so designated prior to the issue of Public Service Board Circular 1961/35, and prior to the judgments in the engineers' cases. There was no case of any officer in the authority who, prior to the determinations was classified as " Engineer ", being classified otherwise after the determinations or vice versa. No authority engineers are receiving, following the implementation of the professional engineers' determinations, lower salaries than they would have received had the authority adopted a basis for salary adjustments identical to that adopted within the Public Service. 1. Officers of the Atomic Energy Commission employed as experimental officers after 7th December, 1962, and with effect from 29th December, 1962, are paid the rates contained in a consent determination issued by the Public Service Arbitrator following upon an agreement on salaries between the parties concerned. The new and higher salary rates arose from a consideration by the parties of the value of the current function, duties and responsibilities of experimental officers. 9 and 10. Separate determinations apply to engineers and experimental officers. Engineers are covered by Determination 19 of 1961 made by the Conciliation and Arbitration Commission under the provisions of the Public Service Arbitration Act while experimental officers are covered by consent Determination 54 of 1962 issued by the Public Service Arbitrator. All engineers are paid strictly in accordance with the provisions of the determination governing their employment as are experimental officers. The only basis on which officers now designated engineer would be eligible to be paid the rates of salary provided in the determination for experimental officers would be if they were transferred out of their existing positions to perform duties of an experimental nature. They would then cease to be eligible for the engineers' award. {:#subdebate-44-15} #### Australian Atomic Energy Commission. (Question No. 25.) {: #subdebate-44-15-s0 .speaker-K9M} ##### Mr L R Johnson: son asked the Minister representing the Minister for National Development, upon notice - {: type="1" start="1"} 0. Was memorandum No. 112, dated 6th May, 1963, under the name of A. C. Cooper, Senior Administrative Officer, on behalf of the Acting Executive Member of the Australian Atomic Energy Commission, circulated to all personnel employed at the commission's research establishment at Lucas Heights? 1. What is the text of this memorandum? 2. Does the memorandum instruct all personnel who may be called upon to prepare information in relation to ministerial or parliamentary inquiries to submit such information to the Acting Executive Member for approval before it is passed on to addressees outside the service of the commission? 3. Does paragraph 2. of the memorandum state the direction applies to information requested by (a) departments or authorities of the Commonwealth on behalf of the Ministers to whom they are responsible; (b) members of the Senate or the House of Representatives of the Commonwealth Parliament; (c) Premiers or Ministers of the State governments, or departments or authorities of the State governments on behalf of their Premiers or Ministers; and (d) members of the State legislature? 4. Does paragraph 3 state that the direction should be interpreted in its widest sense, and that any information which may directly or indirectly be used for ministerial or parliamentary purposes, whether Federal or State, should be regarded as coming within its application? 5. What is understood to have inspired or supported the need for this direction? 6. Are all establishment officers required to comply with this direction; if so, will this memorandum deny to personnel at the establishment the right to seek parliamentary representation about industrial or any other matters pertaining to the establishment? 7. Is it considered that the direction is a denial of civil liberties; if so, will the Minister take the necessary steps to effect its withdrawal? {: #subdebate-44-15-s1 .speaker-KDT} ##### Mr Fairbairn:
LP -- The Minister for National Development has supplied the following information: - 1 to 5. On 6th May, 1963, the Senior Administrative Officer of the Australian Atomic Energy Commission's research establishment promulgated an administrative circular relating to the procedure to be observed by officers of the commission's service who are required to provide information for replies to inquiries made by Ministers and members of parliament about the activities of the commission. This circular directed that as a normal administrative procedure the replies to inquiries of this nature would be considered by the executive member before despatch. The circular was perhaps given a wider circulation than was warranted in the circumstances, particularly as it concerned only a very limited number of senior personnel at the research establishment. {: type="1" start="6"} 0. The administrative circular is quite explicit. Its purpose is to ensure that where inquiries are received by the Atomic Energy Commission from Ministers and members of parliament, replies to those inquiries are accurate. 7 and 8. All establishment officers are required to comply with the direction; however, in practice, only a very limited number of senior personnel would be required to provide the information sought and therefore the circular would have very limited application. The circular is intended to cover only inquiries related to the official business of the commission. It does not purport to affect in any way the rights which officers of the commission's service might have to approach their parliamentary representatives. Land Settlement of Ex-servicemen. (Question No. 26.) {: #subdebate-44-15-s2 .speaker-KCB} ##### Mr Davies:
BRADDON, TASMANIA s asked the Minister for Primary Industry, upon notice - >How many acres have been recommended for redevelopment, and what amount has been credited to settlers, as a result of the committee of inquiry set up by the Commonwealth Government, in each of the following soldier settlement areas in Tasmania - (a) King Island, (b) Togari, (c) Mawbanna, and (d) Meunna? {: #subdebate-44-15-s3 .speaker-JLR} ##### Mr Adermann:
Minister for Primary Industry · FISHER, QUEENSLAND · CP -- The answer to the honorable member's question is as follows: - >Area recommended for redevelopment. - (a) King Island, 11,935 acres; (b) Montagu (Togari), nil; (c) Mawbanna, 201½ acres; (d) Preolenna (Meunna), under consideration. > >Amounts credited to settlers. - (a) King Island, £232,204; (b) Montagu (Togari), £754; (c) Mawbanna, £41,142; (d) Preolenna (Meunna), under consideration. (Question No. 27.) {: #subdebate-44-15-s4 .speaker-KCB} ##### Mr Davies: s asked the Minister for Pri mary Industry, upon notice - {: type="1" start="1"} 0. What amount has been received by the Government as rental charges during each year since soldier settlement commenced in each of the following areas: - (a) King Island, (b) Togari, (c) Mawbanna, and (d) Meunna? 1. How many settlers have been granted (a) a permanent and (b) a temporary lease in each of the above areas during each financial year from the date of the inauguration of the scheme? {: #subdebate-44-15-s5 .speaker-JLR} ##### Mr Adermann:
CP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. It is impracticable to separate these amounts as requested without a dissection of every lessee's individual account, which would involve a tremendous amount of work. 1. Issues of permanent and temporary leases - (Question No. 28.) {: #subdebate-44-15-s6 .speaker-KCB} ##### Mr Davies: s asked the Minister for Primary Industry, upon notice - {: type="1" start="1"} 0. What has been the total cost to date of war service land settlement in respect of each of the following areas in Tasmania: - (a) King Island, (b) Togari, (c) Mawbanna, and (d) Meunna? 1. How many settlers have been given tenancy of (a) dairy and (b) sheep farms in each of the above settlements? {: #subdebate-44-15-s7 .speaker-JLR} ##### Mr Adermann:
CP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. Total costs to 31st May, 1963.- King Island, £4,342,198; Montagu (Togari), £2,469,247; Mawbanna, £197,878; Preolenna (Meunna), £131,173. 1. Tenancy of settlers - {:#subdebate-44-16} #### Shipping- Steel. (Question No. 30.) {: #subdebate-44-16-s0 .speaker-JP5} ##### Mr Benson:
BATMAN, VICTORIA n asked the Minister for Trade, upon notice - {: type="1" start="1"} 0. Has his attention been drawn to a report in a Sydney newspaper of 14th May that a shipment of 365 tons of structural roofing steel aboard the Holland-Australia line vessel " Blitar ", originally intended for the extension now being made to the bulk sugar terminal at Mackay, was being diverted to Townsville to be used in rebuilding the gutted bulk raw sugar terminal at that port? 1. Is the " Blitar " a Dutch-owned and manned vessel, and is it engaged in trading between Dutch continental and Australian ports? 2. Was the steel in the "Blitar" imported into Australia; if so, where was it loaded? 3. If the steel is of Australian origin, why was it carried in a Dutch vessel? 4. Does Australia not only produce sufficient steel for its own requirements, but also export steel to overseas countries? {: #subdebate-44-16-s1 .speaker-009MB} ##### Mr McEwen:
CP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. Since my return from overseas the particular article has been brought to my attention. 1. Lloyd's Registrar of Ships describes the " Blitar " as Dutch owned. The officers and crew of til is vessel are almost entirely Dutch nationals. The " Blitar " is engaged on regular service between Australian and continental ports. 3 and 4. I have been advised that the cargo of structural steel originated in Holland and was loaded at Rotterdam. 2. There are still some categories of steel of which we must import whole or part of our needs, and structural steel is one of these categories Any particular type of steel may be imported subject to the prevailing tariff. {:#subdebate-44-17} #### Social Services. (Question No. 34.) {: #subdebate-44-17-s0 .speaker-JO8} ##### Mr Barnard:
BASS, TASMANIA d asked the Minister for Social Services, upon notice - {: type="1" start="1"} 0. Has the payment of social service pensions to inmates of mental hospitals been considered? 1. Has consideration been given to the subjectmatter raised by the State Ministers for Health concerning the payment of such pensions? 2. Why is it considered desirable not to continue these payments to inmates of mental hospitals? {: #subdebate-44-17-s1 .speaker-KZE} ##### Mr Roberton:
Minister for Social Services · RIVERINA, NEW SOUTH WALES · CP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. Yes. 1. Yes. 2. The Social Services Act provides for suspension of pension when an age, invalid or widow pensioner enters a mental hospital. Successive Commonwealth governments have always taken the view that the maintenance and care of mentally afflicted persons in State mental hospitals is the responsibility of the respective State governments. {:#subdebate-44-18} #### Tuna Fishing. (Question No. 35.) {: #subdebate-44-18-s0 .speaker-JO8} ##### Mr Barnard: d asked the Minister for Primary Industry, upon notice - {: type="1" start="1"} 0. What attempts have been made to assess the potential of the tuna fishing industry off the east coast of Tasmania? 1. Is it considered possible to develop tuna fishing on a commercial basis in these waters? 2. If so. what action is contemplated, and when is it proposed to be taken? {: #subdebate-44-18-s1 .speaker-JLR} ##### Mr Adermann:
CP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. The Commonwealth Government chartered a United States tuna clipper in 1950 to assess the potential of the live bait and pole method of tuna fishing in the waters of south eastern Australia generally. 1. As a result of work done at that time, the New South Wales tuna fishery was established, and a tuna fishery was subsequently developed near Port Lincoln, South Australia. The results of the vessel's operations in Tasmanian waters, however, were not sufficiently encouraging to attract fishermen to the fishery. Present knowledge is inadequate to assess whether a commercial tuna fishery could be established in Tasmanian waters. 2. The assessment of the tuna potential of these waters has been the subject of recent discussions between officers of my Department and the Commonwealth Scientific and Industrial Research Organization and consideration is now being given to the steps necessary to enable the assessment to be made. {:#subdebate-44-19} #### Unemployment. (Question No. 41.) {: #subdebate-44-19-s0 .speaker-6V4} ##### Mr Daly: y asked the Minister for Labour and National Service, upon notice - {: type="1" start="1"} 0. How many (a) men, and (b) women are registered as unemployed in Australia at this date? 1. Of those registered, how many are in the following age croups: - (a) under 21 years, (b) 21-30 years, (c) 31-40 years, (d) 41-50 years, (e) 51-60 years, and (f) 61-65 years? {: #subdebate-44-19-s1 .speaker-009MA} ##### Mr McMahon:
LP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. At 26th April, 1963, there were 51,600 males and 33,025 females registered for employment with the Commonwealth Employment Service throughout Australia. These were persons who, when registering, had claimed that they were not employed and who were recorded as unplaced. They include some referred to employers and some who may have obtained employment without notifying the Commonwealth Employment Service. They include also recipients of unemployment benefit 1. The only available figures by age-groups are in respect of persons under 21 years and those 21 years and over. At the above date, these were - (Question No. 42.) {: #subdebate-44-19-s2 .speaker-6V4} ##### Mr Daly: y asked the Minister for Labour and National Service, upon notice - >How many (a) men, and (b) women were unemployed in each State on the latest date for which the information is available? {: #subdebate-44-19-s3 .speaker-009MA} ##### Mr McMahon:
LP -- The answer to the honorable member's question is as follows: - >At 26th April, 1963, the following were the numbers of persons registered for employment with the Commonwealth Employment Service who had claimed when registering that they were not cmployed and who were recorded as unplaced. They include persons referred to employers and those who may have obtained employment without notifying the Commonwealth Employment Service. They include also recipients of unemployment benefit - {:#subdebate-44-20} #### (Question No. 43.) {: #subdebate-44-20-s0 .speaker-6V4} ##### Mr Daly: y asked the Minister for Labour and National Service, upon notice - 1 How many (a) men and (b) women are registered as unemployed at the Newtown Employment Office, Sydney, at this date? {: type="1" start="2"} 0. Of those registered, bow many (a) men and (b) women are migrants? 1. What are the numbers of each nationality registered as unemployed at this office? {: #subdebate-44-20-s1 .speaker-009MA} ##### Mr McMahon:
LP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. At 26th April, 1963- the latest date for which figures are available - there were (a) 786 males (681 adults and 105 young persons) and (b) 373 females (297 adults and 76 young persons) registered for employment at the District Employment Office at Newtown. These are persons who claimed when registering that they were not employed and who were recorded as unplaced. They include those referred to employers and those who may have obtained employment without notifying the Commonwealth Employment Service. They include also recipients of unemployment benefit. 2 and 3. The required information is not available. When registering persons for employment the Commonwealth Employment Service does not discriminate between migrant applicants and those of local origin. (Question No. 44.) {: #subdebate-44-20-s2 .speaker-6V4} ##### Mr Daly: y asked the Minister for Labour and National service, upon notice - {: type="1" start="1"} 0. How many (a) men and (b) women migrants are registered as unemployed in (i) each State and (ii) Australia? 1. What are the nationalities of those registered as unemployed, and what is the number in each case? 2. What is the (a) longest, (b) shortest and (c) average period of unemployment in each case? {: #subdebate-44-20-s3 .speaker-009MA} ##### Mr McMahon:
LP -- The answer to the honorable member's questions ie as follows: - 1, 2 and 3. The required information is not available. The Commonwealth Employment Service does not discriminate between local and migrant applicants for employment and consequently no separate record is kept of migrant applicants or of their nationality. {:#subdebate-44-21} #### Social Services. (Question No. 45.) {: #subdebate-44-21-s0 .speaker-6V4} ##### Mr Daly: y asked the Minister for Social Services, upon notice - {: type="1" start="1"} 0. How many persons are in receipt of (a) age and (b) invalid pensions in Australia at this date? 1. How many of these persons are eligible for medical benefits? {: #subdebate-44-21-s1 .speaker-KZE} ##### Mr Roberton:
CP -- The answers to the honorable members questions are as follows: - {: type="1" start="1"} 0. Age pension, 605,929; Invalid pension, 103,073; total, 709,002. 1. The information is not available. However, on 31st March, 1963, there were 824,411 persons in receipt of age, invalid, widows' and service pensions and tuberculosis allowance, of whom 725,889 were enrolled in the Pensioner Medical Service. (Question No. 46.) {: #subdebate-44-21-s2 .speaker-6V4} ##### Mr Daly: y asked the Minister for Social Services, upon notice - {: type="1" start="1"} 0. When was the funeral benefit for age and invalid pensioners introduced? 1. What was the (a) amount and (b) date of the last increase of this benefit? 2. When was child endowment for the first child introduced? 3. What was the date of the last increase of this endowment? {: #subdebate-44-21-s3 .speaker-KZE} ##### Mr Roberton:
CP -- The answers to the honorable members questions are as follows: - {: type="1" start="1"} 0. 1st July, 1943. 2. (a) and (b). There has been no increase in the rate of this benefit. 1. 20th June, 1950. 2. There has been no increase in the rate of endowment for the first child. Pensioners in Outback Areas. (Question No. 50.) {: #subdebate-44-21-s4 .speaker-JZX} ##### Mr Collard: d asked the Minister for Social Services, upon notice - {: type="1" start="1"} 0. Have the arbitration courts, for the purpose of offsetting to some degree the high cost of living, high cost of transport, and general lack of those amenities available to city dwellers, awarded workers in outback areas of Australia a district allowance? 1. Does he have any objection at all to the allowance being awarded for the purposes stated? 2. If not, will he give favorable consideration to arranging for an allowance, over and above the pension rate, to be paid to pensioners living in outback areas for the same purposes as the district allowance is awarded? 3. If he is not prepared to give this matter consideration, why not? {: #subdebate-44-21-s5 .speaker-KZE} ##### Mr Roberton:
CP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. Yes. 1. No. 3 and 4. It has been a long-standing policy that the rates and conditions of grant of pensions should be uniform throughout the Commonwealth. It is important to maintain this policy for the basic social services payments but it is competent for the States to supplement these payments to meet local situations. {:#subdebate-44-22} #### Fertilizer. (Question No. 52.) {: #subdebate-44-22-s0 .speaker-DB6} ##### Mr Wentworth:
MACKELLAR, NEW SOUTH WALES h asked the Prime Minister, upon notice - {: type="1" start="1"} 0. Is it a fact that immense sources of energy. Including both hydro-electric power and natural gas, exist untapped and undeveloped in New Guinea? 1. Could these resources be readily harnessed for the production of artificial fertilizer? 2. Is such fertilizer urgently required both in New Guinea and throughout South-East Asia as part of the campaign against hunger and malnutrition? 3. If the position is as stated, would it be practicable for the appropriate international agency to assist in financing the erection of a large-scale fertilizer plant in New Guinea, from whose production fertilizer, if necessary in the form of a gift, could be made available to distressed and famine-prone areas? 4. Will he consult with the appropriate international organizations on these matters? 5. Will he undertake to make some report on these matters to the House at its next meeting? {: #subdebate-44-22-s1 .speaker-N76} ##### Sir Robert Menzies:
LP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. Considerable potential for production of hydro-electric power is available in New Guinea and also in Papua. Natural gas has been found in Papua, but the extent of reserves has not been proved. 2 and 3. Nitrogenous fertilizer - most suitably in the form of urea - could be readily manufactured from natural gas if this was available in sufficient quantities, but such manufacture would not be economic unless undertaken on a very large scale or as part of an industrial complex. In addition to the very large capital requirements for the necessary chemical plant, installations such as a township, power supplies, navigational and port facilities would be required. Tremendous reserves of readily accessible natural gas have already been proved in other parts of the world, and commercial production of urea and other fertilizers is expanding rapidly in established producing countries and also in some Asian countries which might otherwise be regarded as potential markets for urea produced in Papua. There is a current demand of about 1,400 tons per year of imported urea for tree crops in Papua and New Guinea, but there is no present need for urea in fertilizing garden crops. 4, 5 and 6. In any approach to an international organization for financial assistance in the largescale production of artificial fertilizer in Papua and New Guinea, it would be necessary to demonstrate the economics of the scheme and, as indicated above, it is by no means clear that such a scheme would be practicable.

Cite as: Australia, House of Representatives, Debates, 13 August 1963, viewed 22 October 2017, <http://historichansard.net/hofreps/1963/19630813_reps_24_hor39/>.

View PDF View XML View in Voyant