House of Representatives
19 August 1975

29th Parliament · 1st Session



Mr SPEAKER (Hon. G. G. D. Scholes) took the chair at 2. 1 5 p.m., and read prayers.

page 1

CHAIRMAN OF COMMITTEES

Mr SPEAKER:

-On 14 July 1975, I received the following letter from the honourable member for Perth (Mr Berinson):

Dear Mr Speaker,

I hereby resign my position of Chairman of Committees of the House of Representatives and, in doing so, I desire to express my appreciation for the help and courtesy extended to me by all honourable members and officers of the House.

Yours faithfully, J. M. BERINSON

The office of Chairman of Committees being vacant, it is now necessary for the House to elect a Chairman of Committees. I call for nominations for the position.

Mr LAMB:
La Trobe

-I move:

That the honourable member for Scullin, Dr Jenkins, be appointed Chairman of Committees of this House.

Mr SPEAKER:

-Is the motion seconded?

Dr Cass:

– I second the motion.

Mr SPEAKER:

– Is there any further nomination?

Mr ENGLAND:
Calare

-I move:

That Mr Lucock, the honourable member for Lyne, be appointed Chairman of Committees of this House.

Mr SPEAKER:

-Is the motion seconded?

Mr Bourchier:

– I second the motion.

Mr SPEAKER:

-Is there any further motion? There being no further motion, I call the honourable member for La Trobe.

Mr LAMB:
La Trobe

-Mr Speaker, we on this side of the House believe that our candidate, the honourable member for Scullin (Dr Jenkins), is a most admirable and honourable member to fill the office of the Chairman of Committees. Unlike the previous Chairman of Committees, he is not a lawyer, although he does come to the Parliament with a duo of academic successes, in the fields of medicine and science. I say this because while it is not important to hold legal qualifications to be a Chairman of Committees, the qualifications of the honourable member for Scullin do indicate the self-discipline and objectivity possessed by him, characteristics displayed so well by the honourable member for Perth (Mr Berinson) during his tenure of office as Chairman of Committees. Primarily it is parliamentary experience rather than legal experience or academic qualifications that is the prerequisite for the holder of the office of Chairman of Committees or of Speaker- and one of the tasks of the

Chairman of Committees is to deputise for you, Mr Speaker. I believe that the honourable member for Scullin possesses the necessary requirements- an intimate understanding of parliamentary life, of the problems of members individually and collectively, and of the atmosphere of this House.

The honourable member for Scullin has had a long and distinguished apprenticeship inside and outside Parliament in the way of preparation for holding this position. He has served 14 years in Australian parliaments, 8 years as the member for Reservoir in the lower House of the Victorian Parliament, and the last 6 years, since 1969, as the honourable member for Scullin in this House, having been re-elected in 1972 and 1974. I believe that in all that time he has served his electorate with dedication, sincerity and distinction. Moreover, he is a person well versed in the committee system of Parliament. He was a member of the Printing Committee of the Victorian Parliament and was Deputy Chairman of the Statute Law Revision Committee in that State. He was appointed Deputy Chairman of the House of Representatives Select Committee on Wildlife Conservation on his election to this Parliament. I have served on the House of Representatives Standing Committee on Environment and Conservation, under his chairmanship, for more than 2 years, as have members on the other side of the House. He has been Chairman of the Joint Committee on the Parliamentary Committee System since that Committee was established 1 1 months ago. He is also a member for the Privileges Committee of this House. I have mentioned all of those matters because it is in that extraordinary record of Committee service and as one of our former Deputy Chairmen of Committees that we have observed the qualities that make him an ideal candidate- integrity, judgment, a sense of humour, common sense and firmness tempered with understanding.

The honourable member for Scullin is a man of integrity, a virtue he demonstrated when he stood down as a Deputy Chairman of Committees this year over a matter that has forced all honourable members on both sides of this House to re-examine their conceptions and understanding of the chairmanship of this House. The persons who preside over the proceedings of this House are the protectors of the rights of the Parliament- not of the Executive or a political party- while acknowledging that the Government must control the business of the House.

In my maiden speech in this House a few years ago I said that this Parliament was in danger of being seen by the public as an anachronistic gas chamber where politicians make wordy speeches, throw around inane interjections and manipulate parish pumps. That is a constant danger. Its avoidance depends upon the members themselves and the chairmanship of this House. Honourable members on this side of the House believe that their candidate- the honourable member for Scullin- possesses the qualities required to complement your own contribution, Mr Speaker, towards constantly raising the standards of this place in the eyes of the public, particularly at a time when the number of supporters of the Government and the Opposition is fairly close and the potential atmosphere is highly charged. We commend his candidature to the House.

Mr ENGLAND:
Calare

-Mr Speaker, I regard it as being an honour to commend to you and to the House the appointment of Mr Philip Ernest Lucock, Commander of the Order of the British Empire and the honourable member for Lyne, as the Chairman of Committees of this House. For the smooth and efficient running of the House I think we should be looking at the aspect of service. In this respect I do not intend to go into such detail as did the honourable member for La Trobe. Service falls into 2 parts. Over a period of 23 years, Mr Lucock has provided a fully effective service to those whom he represents in his electorate of Lyne. It is not given to many to have the opportunity of serving the people for such a length of time. As we all know, periodically we have to face the public. The people of Lyne have continued to send Mr Lucock back to this place to serve them. Over that period he has demonstrated without doubt a knowledge of and an ability in relation to matters of Federal import over a very wide field.

Further, and more importantly, I refer to the qualifications he has for the specific task for which I have had the honour to nominate him. He served for a record term in the history of this Parliament- I emphasise that- as Deputy Speaker and Chairman of Committees. That service commenced from 8 March 1961 and, without going into further detail as to the exact date, I emphasise that it continued for a period of approximately 12 years. In addition he was associated with the work of the Chair in this Parliament before he was appointed Deputy Speaker and Chairman of Committees and he has been associated with it since that time, and this has given him an association either as a Deputy Chairman, of Committees or, as the position used to be called, a Temporary Chairman, and then Chairman of 1 7 or 1 8 years in all. There are many members of this Parliament who have witnessed the efficient and impartial manner in which Mr Lucock has conducted his work from the Chair.

I would like to go to the words not of somebody from his own political party but of somebody from outside it. I refer to the last election of a Chairman of Committees when the honourable member for Burke (Mr Keith Johnson) said: . . . having seen both contenders for the position in operation in the chair both as the deputy of the Speaker and as the Chairman of Committees, I would find it very difficult, I suppose, to choose between them in respect of their competency. The honourable member for Lyne during the period of his occupancy of the chair, in my view, performed very fairly and within the Standing Orders.

The person with whom he was comparing him, Sir, was you. I feel that that speaks for itself. The honourable member’s record is a magnificent one; it would be very hard to beat. I firmly believe that that record will be added to on a further occasion. I commend to the House the appointment of Mr Lucock to the position of Chairman of Committees.

Dr CASS:
Minister for the Media · Maribyrnong · ALP

– I rise to endorse the nomination of the honourable member for Scullin for the position of Chairman of Committees. I will not traverse the historical facts that have been given by the honourable member for La Trobe. However, if you will forgive me, Mr Speaker, I would like to make one or two personal reminiscences. I have known Dr Jenkins for many years in the Australian Labor Party and my comments relate to my personal experience with him in that period and particularly to his capacity as a chairman. Many of us aspire to be chairmen. We all like to think that we know how to control things and people, and I can be accused of that; but, sadly, very few people are competent in this field.

I am reminded that the very first occasion on which I got to know Harry Jenkins was when he was chairman of a Labor Party committee that was dealing with a very controversial topic, a topic which was known to be of an explosive nature. The people appointed to the committee were all at sixes and sevens. It was a measure of Harry’s skill as a chairman that the committee brought in a unanimous report. He has shown that same skill in his time in this Parliament as chairman of committees which have dealt with quite controversial topics relating to the environment. He has managed so to encourage- not suppress- the full expression of points of view, and yet at the same time to maintain relevance on the part of the contributors, that he has succeeded in getting a large measure of unanimity or consensus of opinion on most of the committees with which he has been concerned. In short no doubt I will suffer like the rest of the members of this place if Dr Jenkins is appointed to this position because he will force me, I hope like the rest of the members of this place, to be relevant. For these reasons I endorse his nomination.

Mr BOURCHIER:
Bendigo

-In rising to second the nomination of the honourable member for Lyne for the position of Chairman of Committees I can only endorse the remarks that have been made by the honourable member for Calare (Mr England). I and other members of the Opposition have seen Mr Phil Lucock in operation during the last 2lA years and we know how very effective he has been both as a Deputy Speaker and as a Deputy Chairman. When he has been in charge of proceedings the House has always run very smoothly. He has a very sound knowledge of the operations that are required of the House and he carries them out to the very best of his ability. I feel somewhat like the honourable member for Burke (Mr Keith Johnson) felt when he was in a similar position last year, because I realise that the honourable member for Lyne and Dr Jenkins are people who are both very capable and very able to carry out the duties of the position. If Phil Lucock is unfortunate enough not be be elected, then I am sure that Dr Jenkins will be a good second string. I heartily endorse and recommend Phil Lucock for the position.

Mr WENTWORTH:
Mackellar

-Mr Speaker, I think that nothing could be said which would detract in any way from the personal merits of either candidate for this position. I am sure that personally both honourable members are qualified to occupy the position. I think that perhaps the Labor Party has been wise in nominating one of the few of its members who is likely to retain his seat after the next general election.

On a more serious note, may I say this: There is generally a tradition in this House that the Chairman of Committees should come from the Government side. On the whole, I think that that is a good tradition. I am wondering whether in these particular circumstances, that tradition should be observed. The particular circumstances arise because of the habit of the Prime Minister of hectoring and intimidating the occupants of the chair or the Chairmen in this House.

Mr SPEAKER:

-Order! I suggest that the honourable gentleman debate the question which is now before the Chair and that is the nomination of the 2 honourable members concerned. The subject matter upon which the honourable gentleman is now embarking is one which he can take up in other circumstances.

Mr WENTWORTH:

– Indeed, Sir. While I concede that both honourable members have personal merits, I am now debating the question as to whether we should follow the tradition of the House in electing somebody from the Government side as Chairman. I am saying, Mr Speaker, that this is generally a good tradition but in these particular circumstances I doubt that it is because I looked at the way in which the Prime Minister assassinated your predecessor in the chair.

Mr SPEAKER:

– Order! If the honourable gentleman continues on that line, I will ask him to resume his seat.

Mr WENTWORTH:

- Sir, I am trying to make my point as relevant as I can.

Mr SPEAKER:

– I realise the honourable gentleman is having great difficulty with relevance and I will help him with it if he continues on that line.

Mr WENTWORTH:

– My point has a very great relevance to whether or not we should vote for the nominee from the Government side. That is the question before the House. What I am saying is entirely relevant to that question. I am saying that in these circumstances, Mr Speaker- and your predecessor in the chair would know the circumstances very well- there is something to be said for having in the chair as Chairman of Committees, somebody who does not come from the Government side. Sir, what I am saying, with all respect, is entirely relevant to that question. I remind the House and you, Mr Speaker, of the way in which the present Prime Minister, who continues as Prime Minister, assassinated your predecessor, and that is relevant.

Mr SPEAKER:

– Order ! The honourable gentleman will resume his seat. In accordance with the Standing Orders, the bells will be rung for 2 minutes. ( The bells having been rung)-

Mr SPEAKER:

-The ballot papers will now be distributed. Will honourable members please write on the ballot papers the name of the candidate for whom they wish to vote. The candidates are Dr Jenkins and Mr Lucock. (A ballot having been taken)-

Mr SPEAKER:

– The result of the ballot is: Dr Jenkins 62 votes, Mr Lucock 58 votes. I therefore declare Dr Jenkins elected as Chairman of Committees and offer him my congratulations.

Mr WHITLAM:
Prime Minister · Werriwa · ALP

-Mr Speaker, on behalf of the Government, and I have no doubt on behalf of all honourable members, I should like to congratulate the honourable member for Scullin on being elected as Deputy Speaker. It was a difficult choice for honourable members to make because we had to choose between 2 experienced parliamentarians and 2 gentlemen who are respected by every member of the House. It was a secret ballot. I suspect that the result would have been the same if there had been a division.

The honourable member for Lyne has held the office of Deputy Speaker for, 1 believe, a record term. The honourable member for Scullin has not been a member of this House nearly so long- barely a quarter of the time- but he had been for 8 years earlier a member of the Legislative Assembly of Victoria. He has already been a Deputy Chairman of Committees for 2 years in this House. He had been a member of parliamentary committees in the Victorian Parliament and, as we all know, he has been a member of many committees- standing committees, select committees and joint committees- as a member of this Parliament. He has been a member of the House Committee, he was the Deputy Chairman of the House of Representatives Select Committee on Wildlife Conservation, he is the Chairman of the House of Representatives Standing Committee on Environment and Conservation and he is the Chairman of the Joint Committee on the Parliamentary Committee System. He has, moreover, been a member of the Australian delegation to the annual conference of the InterParliamentary Union at Paris in September 197 1 and a member of the Third International Parliamentary Conference on the Environment in Nairobi in April last year. It will be seen that he is an experienced and diligent parliamentarian. I congratulate him, as will all honourable members. There is only one other comment I must make: He is one of those doctors who are frank in acknowledging their politics and rational in advocating them.

Mr MALCOLM FRASER:
WannonLeader of the Opposition

– For the Opposition I congratulate the honourable member for Scullin who has had a wide experience and who, I believe, will serve the Parliament well. The Prime Minister pointed to the fact that it was a difficult decision for honourable members of this House and that the honourable member for Lyne also is exceedingly well qualified to fill this position. So he is. I say to the Prime Minister that the House will be given an opportunity at some stage for the decision to be reversed. I have no doubt that it will be. That in no way indicates ill will to the honourable member who has won the vote on this occasion. It is not indicating any ill will to him to say that I believe that his holding of the position will not be all that long lived. Nothing should be read into that remark.

The honourable member for Scullin, as Chairman of the Joint Committee on the Parliamentary Committee System, has a real concern for the arrangements of this House; he has a real concern to see that there is reform, to bring the procedures and practices of the House of Representatives into the 20th century and to equip it to go into the 2 1st century. I hope that his new responsibilities will in no way delay the report which I know he has been pursuing, with his Committee members, with diligence. There is a real need for reform in many areas and avenues of the work of this House. This is not the time to canvass the sorts of things which should be done, but the need for reform is very clear. It cannot come about unless there is a government which has a will to make the Parliament work. If there is a government or a Prime Minister who seeks to by-pass the Parliament, then presumably the report of the Committee on the Parliamentary Committee System will be left aside and not acted upon. I say again that there will be a government which will be concerned for the procedures and practices of this House. I hope that the report which Dr Jenkins will be tabling at the appropriate time will lay the ground work for reform which will complement his chairmanship of the committees of this House.

The Opposition will co-operate with the Chairman. We will support his decisions always when we believe them to be right. We will uphold the dignity of the chairmanship, as we do in relation to yourself, Mr Speaker, because propriety of performance in this House is something about which I believe every honourable member is concerned. I am glad that the Government has put forward a candidate of whom I hope all members of this House can be proud in his performance in the position.

Mr ANTHONY:
Leader of the National Country Party of Australia · Richmond

- Mr Speaker, I add my congratulations to the honourable member for Scullin on being elected Chairman of Committees and your Deputy. He has had a good deal of parliamentary experience, although we have not seen a great deal of his experience in this position in the House. However, we wish him well in the new position. I know that he hopes he will be in the position for some time. I have to warn him that there is nothing very permanent about positions in this Government, where ministerial changes are a regular pattern of government and where the Speaker and the Chairman of Committees seem to hold their positions for only a very short time. However, we hope that he displays a good deal of capacity either as the Deputy Speaker or Chairman of Committees in seeing that the procedures of the House are carried out quickly and succinctly and that Ministers do not use this chamber as a forum for party political purposes or for filibustering. There would be one or two exceptions. I would not mind if Ministers were to spell out the Government’s policies in a few areas. I am thinking particularly of minerals and energy, an area in which we have been waiting for Vh years to hear a policy. It would be a pity, after such a distinguished record of national development, for us not even to know the policies and why we have no national development. I should like to say again that we are pleased with the election of the honourable member although we are disappointed that our own nominee was not elected. He is by far the most distinguished and the most experienced person in the House for this office. We know that in the fullness of time he will be back in that position.

Mr LUCOCK:
Lyne

-Mr Speaker, I take the opportunity of joining with the Prime Minister, the Leader of the Opposition and the Leader of the National Country Party of Australia in offering the warmest congratulations to the honourable member for Scullin on his appointment. I must confess that when one of the Government supporters walked across the aisle just a few moments after the vote had been taken my heart rose and I thought: ‘Ah, it has happened at last’. But it was not to be. I do congratulate Dr Jenkins. I can assure him of my support. It is not an easy task to hold this office. I think sometimes that the Deputy Speaker has a harder task even than the Speaker himself. Dr Jenkins can be assured of my fullest support and assistance on any occasion on which he feels it may be an advantage to have advice.

Dr JENKINS:
Scullin

-Mr Speaker, it is with some humility that I thank the House for the honour that it has paid me in electing me to this position. I thank the honourable member for La Trobe and the Minister for the Media who put forward my name to the House. I am grateful for the words they had to say. I am even more grateful, after having chaired committees of which the Minister for the Media was a member over the years, to find he admits that there may have been occasions when I had to place a rein on his exuberance. I thank you, Sir, for your congratulations. I thank the Prime Minister for the words he had to say. Of course I must also thank the Leader of the Opposition and the Leader of the National Country Party of Australia for their remarks.

As was indicated, I have been a member of parliament for a good many years. I have seen fortunes wax and wane. I am under no illusions about what happens in parliaments. I am grateful, however, that the Leader of the Opposition made some remarks with regard to the question of parliamentary procedures. I believe that we are facing an era in which changes have to be made. I trust that the Joint Committee on the Parliamentary Committee System, which he mentioned, will very soon be able to make worthwhile, sensible and dignified suggestions. To the Leader of the National Country Party of Australia I say that term of office does not worry me. The thing is that the task is ahead and that the task should be properly carried out. I trust that, the House having given me its confidence, I will be able to carry out my duties, to maintain the dignity of the parliamentary institution and to allow the proper conduct of its business, the business for which we are all here. I thank the House.

page 6

PETITIONS

The Clerk:

– Petitions have been lodged for presentation as follows and copies will be referred to the appropriate Ministers:

Australian Government Insurance Corporation

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled: The humble Petition of the undersigned Citizens of Australia respectfully showeth that the establishment of an Australian Government Insurance Office will:

  1. Cause the loss of jobs and future prospects of employees and agents of the private Insurance Industry throughout Australia.
  2. Compete unfairly with private insurers.
  3. Require large taxation subsidies for a lengthy period.

Your Petitioners therefore humbly pray that the House of Representatives rejects completely the Australian Government Insurance Office Bill 1975.

And your Petitioners as in duty bound will ever pray. by Mr Clyde Cameron.

Petition received.

Australian Government Insurance Corporation

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled. The humble Petition of undersigned citizens of Australia respectfully showeth that the establishment of an Australian Government Insurance Office will:

  1. . lead to the nationalisation of the Insurance Industry.

    1. Divert a substantial flow of funds from the private to the public sector.
    2. Depress the private sector still further and create unemployment both within the Insurance Industry and elsewhere.

Your Petitioners therefore humbly pray that the House of Representatives rejects completely the Australian Government Insurance Office Bill 1975.

And your petitioners as in duty bound will ever pray. by Mr Drury and Mr Killen

Petitions received.

Australian Government Insurance Corporation

To the Honourable the President and Members of the Senate in Parliament assembled: The humble Petition of the undersigned citizens of Australia respectfully showeth:

  1. 1 ) That Parliament should reject the Bill currently before it to establish an Australian Government Insurance Office.
  2. That while there is a need to establish in Australia a Natural Disaster Fund to provide compensation for property damage and other losses resulting from disasters such as earthquakes, floods and cyclones, such a Fund can be established, as in other countries, using the medium of the existing private enterprise insurance offices.
  3. That a plan for such a Fund was submitted to the Treasury in October 1974.
  4. That no reasons for the establishment of an Australian Government Insurance Office (other than the desire to provide non-commercial disaster Insurance and Australian Government competition with private enterprise) have been given by the Government.
  5. That there is already intense competition between the existing 45 life assurance offices and between over 260 general insurance companies now operating in Australia, and that further competition from a Government Office would only be harmful.
  6. That the insurance industry is already faced with

    1. the effects of inflation,
    2. increased taxation on life assurance offices,
    3. c) the effects of recent natural disasters,
    4. other legislative measures already in train or in prospect by the Government, e.g. the National Compensation Bill, a National Superannuation Plan and Improved Commonwealth Public Service Superannuation.
  7. That as taxpayers your petitioners are greatly concerned at the huge costs (far more than the $2 million initial capital and loan funds which it is proposed will be allocated ) of establishing an Australian Government Insurance Office.

Your petitioners therefore humbly pray that the House will reject the Bill.

And your petitioners as in duty bound will ever pray. by Mr Killen.

Petition received.

Australian Government Insurance Corporation

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled. The humble Petition of the undersigned citizens of Australia respectfully showeth:

  1. 1 ) That Parliament should reject the Bill currently before it to establish an Australian Government Insurance Office.
  2. That while there is a need to establish in Australia a Natural Disaster Fund to provide compensation for property damage and other losses resulting from disasters such as earthquakes, floods and cyclones, such a Fund can be established, as in other countries, using the medium of the existing private enterprise insurance offices.
  3. That a plan for such a Fund was submitted to the Treasury in October, 1974.
  4. That no sound reasons for the establishment of an Australian Government Insurance Office (other than the desire to provide non-commercial disaster insurance and Australian Government competition with private enterprise) has been given by the Government.
  5. That there is already intense competition between the existing 45 life assurance offices and between over 260 general insurance companies now operating in Australia, and that further competition from a Government office would only be harmful at this time.
  6. 6 ) That the insurance industry is already coping with:

    1. the effects of inflation;
    2. b ) increased taxation on life assurance offices,
    3. the effects of recent natural disasters,
    4. other legislative measures already in train or in prospect by the Government, e.g. the National Compensation Bill, a National Superannuation Plan and improved Commonwealth Public Service Superannuation.
  7. That as taxpayers your petitioners are greatly concerned at the huge costs (far more than the $2m initial capital and loan funds which it is proposed will be allocated) of establishing an Australian Government Insurance Office.

Your petitioners therefore humbly pray that the House will reject the Bill.

And your petitioners as in duty bound will ever pray. by Mr Jacobi.

Petition received.

Australian Government Insurance Corporation

To the Honourable, The Speaker and Members of the House of Representatives in Parliament assembled. The humble petition of undersigned citizens of Australia respectfully showeth:

That the establishment of an Australian Government Insurance Office will enable this and every future Government to control absolutely all private enterprise, both corporate and private.

Your Petitioners therefore humbly pray that the House of Representatives rejects completely the Australian Government Insurance Bill 1975.

And your petitioners as in duty bound will ever pray. byMrStaley.

Petition received.

Australian Government Insurance Corporation

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled. The humble Petition of undersigned citizens of Australia respectfully showeth that the establishment of an Australian Government Insurance Office will:

  1. Cause serious disruption of already established career opportunities of employees in the private insurance industry.
  2. Eliminate private insurance thereby denying Australians a freedom of choice.
  3. Nationalise the insurance industry as a step towards nationalising many other industries.

Your Petitioners therefore humbly pray that the House of Representatives rejects completely the Australian Government Insurance Office Bill 1975.

And your Petitioners, as in duty bound, will ever pray. byMrStaley.

Petition received.

Australian Government Insurance Corporation

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled. The humble petition of undersigned citizens of Australia respectfully showeth:

That the people of Australia do not want the establishment of an Australian Government Insurance Office.

The private insurance industry adequately caters for the needs of all Australians.

The A.G.I.O. is the first step in a program to socialise and nationalise insurance in Australia and this can only be to the great detriment of individual Australians.

Your petitioners therefore humbly pray that the House of Representatives rejects the Australian Government Insurance Office Bill 1975.

And your petitioners, as in duty bound, will ever pray. byMrViner.

Petition received.

Australian Government Insurance Corporation

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled. The humble Petition of undersigned citizens of Australia respectfully showeth that the establishment of an Australian Government Insurance Office will:

  1. 1 ) Further shrink the flow of funds available for finance for private enterprise in Australia.
  2. Will eventually lead to nationalisation of much of private enterprise in Australia.
  3. Cause serious unemployment in the private insurance industry throughout Australia.

Your Petitioners therefore humbly pray that the House of Representatives rejects completely the Australian Government Insurance Office Bill 1975.

And your Petitioners, as in duty bound, will ever pray. by Mr Ellicott, Mr Fisher, Mr Graham, Mr McVeigh and Mr Donald Cameron.

Petitions received.

Australian Government Insurance Corporation

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled. The humble Petition of the undersigned employees and agents of the Australian insurance industry respectfully showeth:

  1. 1 ) That Parliament should reject the Bill currently before it to establish an Australian Government Insurance Office.
  2. That while there is a need to establish in Australia a Natural Disaster Fund to provide compensation for property damage and other losses resulting from disasters such as earthquakes, floods and cyclones, such a Fund can be established, as in other countries, using the medium of the existing private enterprise insurance offices. ‘
  3. That a plan for such a Fund was submitted to the Treasury in October, 1974.
  4. That no reasons for the establishment of an Australian Government Insurance Office (other than the desire to provide non-commercial disaster insurance and Australian Government competition with private enterprise) have been given by the Government.
  5. That there is already intense competition between the existing 43 life assurance offices and between over 260 general insurance companies now operating in. Australia, and that further competition from a Government Office would only be harmful.
  6. That the insurance industry is already faced with

    1. the effects of inflation,
    2. b ) increased taxation on life assurance offices,
    3. the effects of recent natural disasters,
    4. other legislative measures already in train or in prospect by the Government, e.g. the National Compensation Bill, a National Superannuation Plan and improved Commonwealth Public Service Superannuation.
  7. That as taxpayers your petitioners are greatly concerned at the huge costs (far more than the $2m initial capital and loan funds which is proposed will be allocated) of establishing an Australian Government Insurance Office.
  8. That as employees and agents of existing insurance offices your petitioners fear for their jobs and their future prospects if the Parliament proceeds with the legislation.

Your petitioners therefore humbly pray that the House will reject the Bill.

And your petitioners as in duty bound will ever pray. by Mr Clyde Cameron, Mr Graham and Mr Staley.

Petitions received.

Tertiary Education Scheme

To the Honourable Speaker and Members of the House of Representatives in Parliament assembled. The humble petition of the undersigned citizens and foreign students respectfully showeth:

That the undersigned most strongly agree with the changes proposed to the tertiary education scheme in the submission to the Committee to review the scheme presented by the Australian Union of Students, and see the following specific changes as being immediately necessary:

  1. 1 ) An immediate increase in the maximum awayfromhome and independence rates from the present $32 p.w. to $49 p.w., as indicated in the 1974 joint Department of Education and A. U.S. survey of student cost and expenditure.
  2. Indexation of the allowance according to moves in the Consumer Price Index weighted for particular student costs.
  3. Abolition of the present complex academic requirements preventing financially needy students from obtaining benefits on grounds of their academic standing and replacing them with one year’s automatic grace for students who fail or transfer.
  4. Abolition of the pernicious regulations which prevents students who are less than 2 1 and living away from home from receiving the away-from-home rate (except under three limited conditions).
  5. Increase in the allowance for dependent spouse from $5 to $17 per week.
  6. Efficient administration of the scheme.

And your petitioners as in duty bound will ever pray. by Mr Beazley, Mr Charles Jones, Dr Cass, Mr Riordan, Mr Coates, Mr Hurford, Mr Mathews and Mr Ruddock.

Petitions received.

Increased Postal and Telephone Charges

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled. The humble petition of the undersigned citizens of Australia respectively sheweth. That we wish to protest most vigorously at the proposed increases in postal and telephone charges.

Your petitioners most humbly pray that the House of Representatives in Parliament assembled will take immediate steps to:

Diminish the size of the increase or, if possible, leave charges as they are.

And your petitioners as in duty bound will ever pray. by Mr Lynch, Mr Davies, Mr Ellicott, Mr Erwin, Mr Kelly, Mr Kerin and Mr Luchetti.

Petitions received.

Metric Systems

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled. The petition of the undersigned citizens of Australia respectfully showeth:

That the plan to obliterate the traditional weights and measures of this country is causing and will cause widespread inconvenience, confusion, expense and distress:

That there is no certainty that any significant benefits or indeed any benefits at all will follow the use of the new weights and measures.

That the traditional weights and measures are eminently satisfactory.

Your petitioners therefore pray:

That the Metric Conversion Act be repealed, and that the Government take urgent steps to cause the traditional and familiar units to be restored to those areas where the greatest inconvenience and distress are occurring, that is to say, in meteorology, in road distances, in sport, in the building and allied trades, in the printing trade, and in retail trade.

And your petitioners as in duty bound will ever pray. by Mr Riordan, Mr McMahon, Mr Ellicott and Mr Staley.

Petition received.

South West National Park- Tasmania

To the Honourable Speaker and members of the House of Representatives in Parliament assembled. The humble petition of the undersigned citizens of Australia respectfully showeth:

That present and proposed development of limestone mining at Precipitous Bluff, tin mining at Coxs Bight, woodchipping in the remaining native forests and damming of South West rivers to produce power, will significantly affect the wilderness quality of South West Tasmania necessitating extensive road systems and damaging irreparably one of the last great wilderness areas of the world.

Your petitioners therefore humbly pray that the House of Representatives will protect this national heritage by refusing Australian Government financial assistance to any project which will further alienate this wilderness.

And your petitioners as in duty bound will ever pray. by Mr Coates, Mr Davies and Mr Duthie.

Whales

To the Speaker of the House of Representatives assembled. The humble petition of residents of Australia respectfully showeth:

That we believe the plight of the world’s great whales to be desperate; that we are convinced that they need conservation now, and that exploitation should cease; that we agree with Dr Sidney Holt of FAO, who says that a complete re-assessment of all scientific data on whales is needed; and we further submit that substitutes to all whale products are available, and could, with Government encouragement, be made in Australia. We are convinced that the great whales, as a significant part of the World’s Wildlife Heritage, and being on the verge of extinction, now need our complete and wholehearted protection.

We, your petitioners, therefore humbly pray that you will:

  1. 1 ) Support a 10 year moratorium on whaling at the 1975 meeting of the IWC.
  2. Support research and development of alternatives to whale products, and encourage production of these products in Australia.
  3. Provide increased funds for research into marine biology.
  4. Force the cessation of whaling operations at Cheynes Beach, W.A.; at the same time providing funds to assist the personnel and facilities of the factory to be otherwise gainfully used (perhaps in whale research, to further our own and the world ‘s knowledge).
  5. Ban the import into this country of all whale products, and all goods containing whale products.
  6. Urge that Australia, as a member of the IWC, use all possible influence to encourage the end of whaling throughout the world, and refuse to service ships of all whaling nations at Australian ports.

And your petitioners as in duty bound will ever pray. by Mr Berinson and Mr Kerin.

Petition received.

Australian Government Insurance Corporation

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled. The humble petition of the undersigned citizens of Australia respectively showeth:

  1. That Parliament should pass the Bill concurrently before it to establish an Australian Government Insurance Office.
  2. That while there is a need to establish in Australia a National Disaster Fund to provide compensation for property damage and other losses resulting from disasters such as earthquakes, floods and cyclones, such a fund can be established using the medium of the proposed Australian Government Insurance Offices.
  3. That a plan for such a fund be submitted to the Treasury forthwith.
  4. That no sound reasons for the non-establishment of an Australian Government Insurance Office exists.
  5. That there is already intense competition between the existing 45 life assurance offices and between over 260 insurance companies now operating in Australia, and that the further competition from a Government Office will engender further useful competition.
  6. That the insurance industry is failing to cope with:

    1. the effects of inflation,
    2. increased taxation on life assurance offices,
    3. the effects of recent national disasters,
    4. other legislative measures already in train or in prospect by the Government, that is the National Compensation Bill, a National Superannuation Plan and improved Commonwealth Public Service Superannuation are commended by your petitioners.
  7. That as taxpayers your petitioners are greatly concerned at the huge costs being spent by the private insurance industry to oppose the establishment of an Australian Government Insurance Office.
  8. That as taxpayers and citizens of Australia, we are concerned as policy holders and prospective policy holders of insurance agents actively campaigning against the proposed legislation.

Your petitioners therefore humbly pray that the House will support the Bill.

And your petitioners as in duty bound will ever pray. by Mr Malcolm Fraser and Mr Bennett.

Petitions received.

Omega Navigation Station

To the Honourable the Speaker and members of the House of Representatives assembled. The humble petition of the undersigned citizens of Australia respectfully showeth:

That an Omega navigation station in Australia would be an integral part of the United States nuclear weapons delivery systems.

That Australian collaboration in such a navigation facility would endanger the people, and negate any Australian initiatives towards nuclear disarmament, nuclear free zones and the non-proliferation of nuclear weapons.

Your petitioners therefore humbly pray that the Government will take all steps to acquaint the people with the dangers of nuclear warfare and to work internationally for nuclear disarmament. And that it will refuse to diminish Australia’s independence and standing through the construction of an Omega station in Australia.

And your petitioners as in duty bound will ever pray. by Mr Coates and Mr Newman.

Petitions received.

Education Assistance: Isolated Children

To the Honourable the Speaker and members of the House of Representatives in Parliament assembled. The humble petition of the undersigned electors of the Division of Wakefield respectfully showeth:

Those children living in isolated country districts arc suffering disadvantages because:

  1. 1 ) they do not have access within their own areas to certain special or diverse forms of education which would answer their particular needs
  2. they are not sufficiently well informed as to special or diverse forms of education which are available to city children with similar needs
  3. they have to move away from home if they have need of a special or diversified type of education
  4. they have difficulty in finding accommodation near schools which offer the courses they desire.

So that disadvantages suffered by children living in isolated country districts may be lessened, there is need for:

  1. 1 ) an expansion of educational facilities in country areas
  2. an Information Centre where country parents can obtain information concerning special or diverse forms of education available to city children
  3. more financial assistance to parents whose children have to live away from home to be educated in a way which meets their particular needs
  4. cottage-type homes in metropolitan areas so that country children living away from home may be adequately cared for.

Your petitioners therefore humbly pray that the House of Representatives will review the assistance given to help the education of isolated children.

And your petitioners as in duty bound will ever pray. by Mr Kelly.

Petition received.

Education Assistance: Isolated Children

To the Honourable the Speaker and members of the House of Representatives in Parliament assembled. The humble Petition of undersigned electors of the Division of Wakefield respectfully showeth:

Those children living in isolated country districts are suffering disadvantages because of this isolation and need more financial assistance than is now available and more accommodation for them.

They would also be helped if an Information Centre where country parents and students could obtain:

  1. details of courses available, particularly alternative and vocational courses, and
  2. types of accommodation available- particularly in relation to the location of ( 1 ).

Your Petitioners therefore humbly pray that the House of Representatives will review the assistance given to help the education of isolated children.

And your petitioners as in duty bound will ever pray. by Mr Kelly.

Petition received.

Taxation Indexation

To the Honourable the Speaker, and the members of the House of Representatives, in Parliament assembled. The humble petition of the undersigned citizens of Australia respectfully showeth:

That the progressive taxation scale is seriously reducing the ability of wage earners to keep up with ever increasing costs, and by forcing them to apply for large gross salary increases in order that their nett take home pay will meet these costs, is a major cause of inflation.

With these considerations in mind, we urge that the Australian Government adopt, at the earliest possible date, the recommendations of the Mathews Committee Report on taxation indexation.

And your petitioners as in duty bound will ever pray. by Mr Coates.

Petition received.

Taxation

To the Honourable the Speaker and members of the House of Represenatives in Parliament assembled. The humble petition of the undersigned citizens of Australia respectfully showeth:

That the undersigned persons believe that:

The $300 limit on income tax deductibility in respect of personal residential statutory outgoings is unrealistic and is a discriminatory income tax penalty.

Your petitioners therefore humbly pray that the Government will take steps to see that the aforesaid limitation is removed entirely or substantially increased.

And your petitioners as in duty bound will ever pray. by Mr Connolly.

Petition received.

Education: Aquinas College

To the Honourable the Speaker and members of the House of Representatives in Parliament assembled. The humble petition of the undersigned citizens of Australia respectfully showeth:

  1. That Aquinas College has been supported by the Sisters of Mercy and the people of Ballarat, Sandhurst, Wagga Wagga and other dioceses since 1909.
  2. That Aquinas College serves a vital need of the Catholic systematic schools of Ballarat, Sandhurst and Wagga Wagga Dioceses.
  3. That Aquinas College is a member of the Institute of Catholic Education and thereby a constituent of the State teacher training authority, the State College of Victoria.
  4. That at the end of this year one hundred and sixty students will be at intermediate stages of their professional training.
  5. That it is a reasonable projection that ninety to one hundred students will wish to begin their training at Aquinas College in 1976 and would be required to begin to ensure adequate future staffing of Catholic schools in the aforementioned dioceses.
  6. That the failure of the Commission on Advanced Edu cation to recommend support for Aquinas College threatens the training of students presently enrolled at that College.
  7. Aquinas College has faithfully met all the requirements for funding prescribed by the Australian Department of Education m July 1973.
  8. That Aquinas College operates at a rate of economy and level of Academic standard comparable with such rates and levels at any other Colleges of Advanced Education in Australia.
  9. That Aquinas College should receive the same per capita financial support from the Australian Government as is granted to other Colleges of Advanced Education in Australia.

Your petitioners therefore humbly pray that the Australian Government will grant to the State College of VictoriaInstitute of Catholic Education such funds as will ensure the continued efficient operation of Aquinas College during the triennium 1976-78.

And your petitioners as in duty bound will ever pray. byMrErwin.

Petition received.

Medibank

To the Honourable the Speaker and Members of the House of Representatives in Parliament assembled. The humble petition of undersigned citizens of Australia respectfully showeth:

That Medibank should not be forced upon an unwilling Australian people.

That taxpayers money should not be used to mount an unprecedented propaganda campaign to sell Medibank to the people.

That any system of comprehensive health care in Australia should not be based upon salaried general practitioner or specialist services or allocated hospital staff as proposed by Medibank but upon the principle of freedom of choice of doctor at the surgery and in the hospital.

That private hospitals should be supported and maintained as a viable, independent and necessary part of national hospital service.

And your petitioners as in duty bound will ever pray. by Mr Viner.

Petition received.

School Cadet Corps

Petition to the Honourable Speaker and Members of the House of Representatives in Parliament.

We the undersigned the citizens of Australia humbly petition the Parliament of the Commonwealth of Australia that they do take such steps as necessary to continue the school cadet movement and actively promote the same; which we do humbly petition the honourable Parliament to make sure, and your petitioners as in duty bound, will ever pray. by Mr Viner.

Petition received.

Uranium

To the Honourable the Speaker and members of the House of Representatives in Parliament assembled. The humble petition of the undersigned citizens of Australia respectfully showeth:

  1. 1 ) that we, citizens of Australia, see our country as a responsible nation that does not encourage nuclear warfare.
  2. that nuclear energy presents the possibility of environmental and genetic catastrophe. Technology has not eliminated that damage.

Your petitioners therefore humbly pray.

  1. 1 ) that the Government will immediately suspend sales of uranium to any country engaged in violent conflict or where common sense tells us that the manufacture of nuclear weapons could be the ultimate purpose to which our uranium is put. It should be a matter of inflexible policy not to consider such sales in the future.
  2. that until technology can prove that the hazards of nuclear energy have been overcome, no Australian uranium should be mined except for medical purposes.
  3. that the Government should actively and immediately encourage the search for safer energy sources by making grants to appropriate institutes for the research and feasibility studies into solar and other alternative sources of energy. by Mr Wentworth.

Petition received.

page 11

MINISTERIAL ARRANGEMENTS

Mr WHITLAM:
Prime Minis ter · Werriwa · ALP

– I inform the House that on 14 July His Excellency the Governor-General accepted my resignation as Minister for Environment and appointed the Hon. Joseph Berinson as Minister for Environment.

page 11

QUESTION

QUESTIONS WITHOUT NOTICE RED SCHEME

Mr RUDDOCK:
PARRAMATTA, NEW SOUTH WALES

-I address my question to the Minister representing the Minister for Labor and Immigration. Is it the case that the Regional Employment Development scheme is being wound down because unemployment has reached such levels that the scheme can no longer be funded at an acceptable cost?

Mr RIORDAN:
Minister Assisting the Minister for Urban and Regional Development · PHILLIP, NEW SOUTH WALES · ALP

– The question is not one which I can answer at this stage because the matter of the funding of the RED scheme is a matter contained in the Budget, as I would expect the honourable member to know. However, I do want to say that the unemployment figures were certainly disappointing but I do not believe that it is appropriate to look at them in their totality and to say there is doom, gloom and nothing more. For example, there has been a significant increase in employment in the clothing and textile industries. I think that should be emphasised. I also think it should be emphasised that, whereas the figures are quite high and unacceptably high at the present time for unemployed persons, those figures should nonetheless be considered in conjunction with the figures that have applied previously. For example, as at July 1972, let the record be clear, under the LiberalCountry Party Government there were 95 732 unemployed persons, excluding school leavers and we are, therefore, looking at something less than 150 000 extra.

Mr Anthony:

– That means nothing! What is another 150 000! Goodness me.

Mr RIORDAN:

– I take the point of the Leader of the National Country Party: What is an extra 150 000? It is a very great number indeed. It is a matter of very great concern to this Government that such a situation should have developed. I want to say this: The right honourable gentleman has little to crow about. If he looks back through the history of his Government when in office he will see a generation of neglect in terms of employment planning and labor planning and a complete lack of any manpower policy. The point I am wanting to raise at this time is that whereas the figures are extraordinarily high- my own view is that they have reached about the height and will go little if any further, and will start to improve significantly- the fact of the matter is that under the full employment program of the Liberal-Country Party Government almost 100 000 people were out of work. That is what those opposite call ‘full employment’. I would say this: After this Government’s policies are implemented and inflation is stabilised, there will be a significant improvement in the employment position.

page 12

QUESTION

EXPORTS OF COAL FROM QUEENSLAND

Mr CROSS:
BRISBANE. QLD

-I ask the Minister for Minerals and Energy: Is there any justification for the claim recently and frequently made by Sir Gordon Chalk, the Treasurer of Queensland, that the Minister is favouring coal producers in New South Wales at the expense of coal producers in Queensland?

Mr CONNOR:
Minister for Minerals and Energy · CUNNINGHAM, NEW SOUTH WALES · ALP

-The answer is definitely no. I am the Minister for Australia, and I do not favour any State. In particular, in the period in which this Government has held office, there has been a distinct forging ahead of coal exports from Queensland. It is a very distinct one. In the current year, of a total of 30 million tons to be exported, no less than 1 7.5 million tons will come from Queensland. As for the innuendo- and the repeated innuendo- that somehow I am favouring the South Coast district, in point of fact in this year there will be a reduction in its exports of coal from 4.5 million tons to 4 million tons. As I see the future, Queensland will forge ahead. It has huge resources easily won and, by the very nature of orthodox technology, it will continue to progress.

page 12

QUESTION

TASMANIAN SHIPPING FREIGHTS

Mr NEWMAN:
BASS, TASMANIA

– My question is directed to the Minister for Transport. Is it a fact that the Minister is refusing the Holyman shipping company consent to charter the roll-on roll-off vessel Wanaka and that this refusal could lead to further increased freight rates to Tasmania? Is it a fact that Tasmanian primary industry and secondary industry are being crippled by the freight rate increases approved by the Minister in recent months? Will the Minister tell the House what steps the Government proposes to take to relieve the crippling freight rate burden on Tasmania?

Mr CHARLES JONES:
Minister for Transport · NEWCASTLE, VICTORIA · ALP

-It is perfectly true that the William Holyman company has made several approaches to me concerning bringing new ships, or imported ships, on to the Australian coast. I have given the company a number of extensions of time with respect to a ship it already has on the coast- a ship that was built overseas and imported into Australia. I have cooperated with the company. The former honourable member for Bass, the Honourable Lance Barnard, spoke to me about this matter on a number of occasions and I co-operated with him and gave the company every assistance possible. It is true to say that at this stage I have not approved the importation of the ship from New Zealand that the company is desirous of bringing to Australia. The matter is still under consideration. It will be interesting to hear what the Opposition has to say on whether it believes in the importation of second hand ships to the disadvantage of the Australian shipbuilding industry. If the Holyman company is prepared to build a replacement ship in Australia, we will be able to give the matter more favourable consideration.

I will deal now with the other part of the honourable member’s question, which was about the freight rates that apply to Tasmania being crippling. Let me say to the honourable member that when the Party of which he is now a member was in government it did nothing whatsoever to assist Tasmania as far as freight rates are concerned. It continually increased freight rates and gave no assistance whatsoever in this place. As far as the actions of the present Government are concerned, the recent 40 per cent increase in freight rates was applicable throughout Australia. It was applicable not only to Tasmania but also to other people using the Australian National Line for the carriage of general cargo. That increase was necessary because of the increases that had occurred in port charges, the cost of fuel and the cost of labour and as a result of industrial disputes. Those matters placed an additional burden on the ANL and on other shipping companies. The real position, as the Prime Minister has said, is that the present Government will endeavour to assist the people of Tasmania.

Let us look at the real facts. This year we will be subsidising northbound freight to the extent of $4m to $5m. That is $4m to $5m more than the Party of which the honourable member for Bass is now a member was ever prepared to pay. We are paying a subsidy of $ 1 m a year in respect of the Empress of Australia. That is $lm more than the honourable member’s Party was ever prepared to spend. The carriage of wheat from the mainland to Tasmania will be subsidised to the extent of about $1.8m. Let us boil down the matter in facts and figures. Every Tasmanian family is receiving from the present Government a subsidy of about $80 a year. On a per capita basis that represents about $22 for every man, woman and child in Tasmania. As a result of action taken by the Whitlam Labor Government, freight rates are being subsidised.

Representatives of the paper manufacturers saw me and said that they were being disadvantaged by the increase in freight rates. I asked them with whom they were in competition. They certainly are not in competition with any other Australian paper manufacturer, because there is none. I explained to them that if they were experiencing problems with respect to paper imports the way to go about overcoming them was to approach either the Temporary Assistance Authority or the Industries Assistance Commission and to seek an increase in tariff protection. That is up to them. It is not up to the Department of Transport to determine the extent and the degree of disability that they might incur. As far as the other bulk commodities that are being exported from Tasmania are concerned, the Tasmanian exporters are not in competition with anyone else. Other Australian bulk commodity handlers have to pay the increase. There is no reason why the Tasmanian bulk section should not likewise be required to carry it. As far as southbound traffic is concerned, it was clearly established in a Bureau of Transport Economics study that was carried out late in 1972 and presented to the Parliament in 1973 that a considerable amount of the southbound freight comes under price equalisation and therefore Tasmania is not disadvantaged. All the bunkum that has been printed about the effect the increase will have on prices in reality cannot be borne out by the facts.

So that the people would get a fair go the Government appointed Mr Nimmo to carry out a study of the requirements of the situation and what should be done about it. But the real answer to the problem is the establishment of an Inter-State Commission so that the facts and figures can be established and so that all the details can be brought out. It is the Opposition which is frustrating the establishment of an Inter-State Commission. In fact if the Opposition had allowed the legislation to go through the Senate, the Inter-State Commission at this stage would have been operational and would have been in the position to carry out a detailed investigation into any disability from which Tasmanians suffer and which the Liberal and Country Party governments in 23 years of office were not prepared to tackle.

page 13

QUESTION

TELEVISION: STATION TVT6

Mr SHERRY:
FRANKLIN, TASMANIA

– My question is addressed to the Minister for the Media. The Minister will recall the 2-hour suspension imposed by him on TVT6 of Hobart last Saturday night. I ask: Under what section of the Broadcasting and Television Act was this penalty imposed? Who introduced the provisions of that Act? Had the station transgressed before and has the Government in fact attempted to amend some of the more anachronistic sections of the Broadcasting and Television Act? Finally, were any alternatives offered to the station management for this breach of the law on 3 occasions?

Dr CASS:
ALP

– I had a sneaking suspicion that such a question might arise in view of the fact that I am depicted as a goateed Goebbels, or words to that effect, in seeking to control what the Press says and does and so on.

Mr Keith Johnson:
BURKE, VICTORIA · ALP

– That is incredible.

Dr CASS:

– I thought it was incredible too. However, it was offered in a humourous fashion so I did not take offence. In November last year the station broke the rules as laid down by the Australian Broadcasting Control Board. The breach was of the rules laid down in regard to the time for which advertisements can appear on television stations. I might point out that those rules were laid down by the Control Board long before we came into power. They are the sorts of rules that the Opposition when it was in government lived with and we are still living with them. That is not to say that the Opposition when in government necessarily liked them any more than we necessarily like them, but that is the situation. As a result of the breaking of the agreement which every other commercial television station seeks to observe- and I want to point that out- the Minister at the time wrote to this station in the following terms:

In view of the fact that TVT has had a very satisfactory record of compliance with the Board’s standards you will understand it is not my desire to exercise my power under Section 86 of the Broadcasting and Television Act -

This is the answer to the question raised by the honourable member about which part of the Act we are operating under- to take action to suspend the licence for the operation of the station. However, as I have stated publicly on several occasions, the Australian Government is not prepared to countenance breaches of the standards. In the present case, therefore, I have decided to take no action pending an assurance from you that steps have been taken to bring the seriousness of the matter to the attention of the management and that adequate procedures have been established to ensure that there will be no further cause for complaint in this area.

That was written in November 1974. Sure enough, a letter was received from Mr McRae pointing out that the letter was acknowledged, stating what had happened and assuring the Minister at the time that this would not happen again. Mr McRae wrote:

We have critically reviewed our procedures in order to ensure that breaches do not occur.

That is not very long ago. However, it was drawn to my attention that on 3 and 4 May this yearless than 6 months later- the same sort of thing had happened. So I wrote another letter pointing out the situation and suggesting that something had to be done because, after all, the station has been warned and it had undertaken not to let it happen again.

I personally do not care much about this particular regulation. I think that people who look at commercial television have to expect to view advertising. I take it that the rule was brought in because people, while they want to look at commercial advertising and are prepared to accept the screening of advertisements as a penalty for doing so, still want limitations placed upon the amount of time during which advertising can be shown. Limitations were placed by the previous Government and we are still abiding by the same rule and regulation. The station concerned gave an explanation as to why the breach had occurred and I accepted its explanation. But it does not alter the fact that the station had broken the rules.

So we are faced with the question as to whether we should ignore the law. If we should, I will stop the Control Board bothering trying to implement that particular law. Why waste money having people sitting in front of television sets timing the length of advertisements if when one discovers that someone has broadcast an advertisement for longer than he should have, one does nothing about it? Let us stop pretending. However, that is a different question.

The fact is that the law is as it is. So I chose to suggest to the station that I would require it to go off the air unless it could make some alternative suggestion. I will not bother reading the letter. Needless to say, I gave warning that I intended to suspend the station. I again want to point out that there is no alternative for me. I either ignore the station’s transgression or I suspend the station. As one critical letter to me pointed out, any school child could have suggested an alternative penalty. I quite agree. But the law does not allow me to impose an alternative penalty. That is the fact. Needless to say, the gentlemen from the station came over to talk to me. I made it quite clear, after they had agreed that they had broken the regulations- they did not deny it- that something had to be done. I gave a very broad hint that as far as I was concerned, I had no desire to impose a penalty. If, in recognition of their transgression, they were prepared to -

Mr Peacock:

– I rise to order, Mr Speaker. I am sorry to interrupt the Minister for the Media, but 1 wonder whether he would table the documents which he is consulting in this connection.

Mr SPEAKER:

– Order! The honourable gentleman will resume his seat. He cannot ask the Minister to table the documents while he is using them. It would deprive the Minister of the documents.

Mr Peacock:

– Well, I will ask the Minister afterwards.

Dr CASS:

-With the greatest of pleasure, I should like to have the documents incorporated in Hansard. There is no secret about them at all.

Mr SPEAKER:

-Order! Is the Minister seeking leave to incorporate the documents in Hansard?

Dr CASS:

-Yes, Mr Speaker.

Mr SPEAKER:

-Is leave granted? There being no objection, leave is granted. (The documents read as follows)-

TVT 6 HOBART

Extract from a letter addressed from Senator Douglas McClelland to Mr G. F. Davies, Chairman of Directors, Tasmanian Television Limited, sent on 16 December 1974. (Breaches of the Advertising Standards were summarised in the letter as below).

Sunday 10 November 1974

In view of the fact that TVT has had a very satisfactory record of compliance with the Board’s Standards, you will understand that it is not my desire to exercise my power under Section 86 of the Broadcasting and Television Act to take action to suspend the licence for the operation of the station. However, as I have stated publicly on several occasions, the Australian Government is not prepared to countenance breaches of the Standards. In the present case, therefore, I have decided to take no action pending an assurance from you that steps have been taken to bring the seriousness of the matter to the attention of the management and that adequate procedures have been established to ensure that there will be no further cause for complaint in this area.

Extract from a letter from E. G. McRae, now Chairman of Directors of Tasmanian Television Limited, to Senator Douglas McClelland sent on 20 December 1974.

Your acknowledgement of our station having a satisfactory record of compliance with the Australian Broadcasting Control Board ‘s Standards and the statement that you do not desire to suspend our licence is very much appreciated. However, the threat and the danger is clear in what you have said. We have critically reviewed our procedures in order to ensure that breaches do not occur.

Dear Mr McRae, 29 July 1975

I have received a report from the Australian Broadcasting Control Board, advising me that station TVT has again been found to be in breach of the Board ‘s Advertising Time Standards. You will recall that, in replying on 20 December 1974, to a letter from my predecessor, Senator Douglas McClelland, regarding breaches which occurred on 10 November 1974, you stated that you had critically reviewed station procedures in order to ensure that further breaches would not occur.

The latest excesses which occurred on Saturday and Sunday, 3 and 4 May, have been taken up by the Board with the station management, and in the opinion of the Board the explanations received from the station did not satisfactorily account for the breaches.

Details of the breaches are set down below:

I am told that your General Manager, Mr D. Carter, has informed the Board that, as a result of these breaches, he has established a continuity department under the direct supervision of the station program manager, whose responsibility it will be to ensure that the Board ‘s standards will be observed at all times.

Notwithstanding this action by Mr Carter I am satisfied that in all the circumstances the appropriate course open to me is to consider suspending the licence granted to Tasmanian Television Ltd, in respect of the operation of the station. Accordingly I am enclosing a formal notice of my intention to take such action pursuant to the provisions of Section 86 of the Broadcasting and Television Act 1942-1975. As required by sub-section 2(b) of Section 86, before reaching a final decision in the matter, I will take into consideration any action by Tasmanian Television Ltd, to prevent the recurrence of similar breaches.

Yours sincerely, (Moss Cass) Minister for the Media Mr E. G. McRae, Chairman of Directors, Tasmanian Television Ltd, Box 1209M,G.P.O., Hobart, Tasmania 700 1 .

BROADCASTING AND TELEVISION ACT 1942-1975

NOTICE UNDER SECTION 86

I, MOSES HENRY CASS, Minister of State for the Media, hereby give Tasmanian Television Limited notice that after the expiration of seven days after the date of service of this notice I intend to suspend the licence numbered 1974/10 dated the 27th day of November 1974 granted to the said company under the Broadcasting and Television Act 1942-1975 on the ground that the said company has failed to comply with sub-sections (4) and (5) of Section 100 of the said Act in that the said company has failed to comply with the standards determined by the Australian Broadcasting

Control Board in relation to the televising of advertisements. The standards referred to are those set out in paragraphs 46 and SO of the second edition of the booklet entitled ‘Television Program Standards’.

DATED the

MOSES HENRY CASS

Minister of State for the Media

TO:

Tasmanian Television Limited, 52 Newtown Road, Newtown, Tas. 7008

MINISTER FOR THE MEDIA CANBERRA, A.C.T.

5 August 1975.

Dear Mr McRae,

Thank you for your letter of 1 August, in response to my letter and notice of 29 July.

I have noted your comments on the factors surrounding your station’s breaches of the Australian Broadcasting Control Board’s Advertising Standards. It is clear from your letter that you are in no way challenging the fact that the breaches, as outlined in my earlier letter to you, did in fact occur. I note that you have not been able to supply any information in explanation of these breaches additional to that already provided to the Australian Broadcasting Control Board and to me in our meeting on 3 1 July.

I reiterate my conviction, which I expressed to you at our meeting, that a licensee must assume full responsibility for the conduct of its television station. This responsibility extends to ensuring that staff, at all levels, comply with applicable statutory and regulatory provisions. The application of these provisions must be uniform and universal. It was my impression that, at our meeting, you accepted this proposition.

I did, however, indicate to you that I was prepared to differentiate between an inadvertent and a deliberate infringement of a regulation in terms of the penalty applicable. On the advice tendered to me by the Australian Broadcasting Control Board, I am prepared to accept that your station’s breaches of the regulations were inadvertent rather than deliberate. However, I am also convinced there is an element of negligence involved. In view of this I believe 1 have no course other than to apply some form of penalty.

The Broadcasting and Television Act provides only one penalty; suspension of a licence for a period not exceeding 7 days. I would rather avoid .applying such a penalty in this situation. However, I am convinced that some action must be taken.

Unless I receive from you by 5.00 p.m. Thursday 7 August, an acceptable alternative suggestion as to some action you will undertake which will demonstrate public acknowledgement of the breaches and will penalise the station in some way, I am obliged to suspend your licence for an appropriate period.

Yours sincerely, MOSS CASS

Mr E. G. McRae, Chairman of Directors, Tasmanian Television Ltd, Box I209M.G.P.O., Hobart, Tas. 7001

Dr CASS:

– Having had this informal discussion with representatives from the station, I made it clear that if they were prepared to make a gesture it would resolve the difficulty. For example, they could refrain from having advertisements on for the period for which they had transgressed. As I got a bit of feedback that might put them in a difficult position with their advertisers, I would have let them put their advertisements on and donate the proceedings to a charity. I was perfectly happy to accept that proposal.

Mr DONALD CAMERON:
GRIFFITH, QUEENSLAND · LP

-To the Labor Party?

Dr CASS:

-No, not to the Labor Party-to an acceptable charity which they could nominate themselves. I ask the honourable member not to get scungy about it. I was perfectly happy with either of those possibilities, in which case I would not have imposed a penalty. That would have signified that the station had recognised that a mistake had been made. That was all that I thought ought to be done. However, I subsequently learned- I cannot vouch for this, but I have been told- that the station representatives were leant on by somebody and told not to do this sort of thing. They had to stand up and resist the monster from Canberra, I take it. So, in my view, I had no alternative but to flick them with a feather duster. That is all it was really; let us face it. I could have taken the station off the air for a whole week. The suspension was for only 2 hours to make the point. If all the commercial networks are in an uproar about it, I am perfectly happy to meet them and discuss alternative proposals so that we can introduce a Bill into this House to change the Act. Hopefully honourable members opposite will endorse the proposal, as we will. We will then get more adult, sensible and intelligent means of control- if control is needed -for commercial stations.

Mr SPEAKER:

– Order ! I ask honourable members to make their questions somewhat shorter. I ask Ministers to make their answers considerably shorter. The answers so far this afternoon have been exceedingly long. The questions have provoked long answers. I think Ministers should refrain from going into a complete historical analysis and should seek to answer the questions in a shorter form.

page 16

QUESTION

NON-OFFICIAL POST OFFICES

Mr HEWSON:
MCMILLAN, VICTORIA

-I ask the Minister representing the Postmaster-General: Has the Government given consideration to the proposals in connection with the new Postal Commission to alter the title of non-official post offices to postal agents? If the changes are made, will the present rights and privileges be retained to protect the non-official postmaster, and will his duties remain the same?

Mr LIONEL BOWEN:
Minister for Manufacturing Industry · KINGSFORD-SMITH, NEW SOUTH WALES · ALP

-As I understand the position, there will not be any real change. I have not had the benefit of discussing the matter with the Postmaster-General but I am assured that the Australian Postal Commission itself has discussed the matter. There have been a lot of groundless fears and a lot of suggestions that changes are going to be made, but I understand there is no truth in them. If there is anything I have to add which I can acertain by further inquiry, I will let the honourable member know.

page 16

QUESTION

FAMILY LAW ACT

Mr McKENZIE:
Diamond Valley · ALP

– My question is directed to the Attorney-General. Following the passing of the Family Law Bill by the Parliament, I and many other honourable members have received numerous inquiries regarding the future operation of the Family Law Act. Can the AttorneyGeneral inform the House of the progress to date in introducing the Family Court of Australia and the likely date of commencement of the Family Law Act?

Mr ENDERBY:
Attorney-General · ALP

– I thank the honourable gentleman for the question because I too have had a number of inquiries about the matter and it has been the subject of speculation in the Press. Honourable members will recall the passing of the Family Law Bill through this House. It received the royal assent on 12 June 1975. There is a section in it, section 41, that requires me to confer with the various State Attorneys on the subject to give them the option of setting up family courts within the various States of the Federation. That consultation has been going on. I have attended personally on each of the State Attorneys, which has taken time in itself. The matter has been the subject of correspondence, and I can tell the House now that I have been informed by the Attorneys in each of the States, other than Western Australia, that they do not wish to set up a family court in their States. I imagine that the decisions in the States had to be considered by the respective Cabinets. New South Wales and Victoria were fairly early off the mark, but I was informed by the Minister for Justice in Queensland only a week or 10 days ago that Queensland does not wish to set up a family court in Queensland but would prefer the Family Court of Australia to operate there. Mr McNeill in Western Australia has told me that he prefers to set up a family court of Western Australia, and no doubt that will be done in due course there.

There are other aspects that have to be considered. For example, the Act in its present form puts a limitation on the number of judges that may be appointed. It restricts the number to seven. In view of the developments I have outlined to the House, the number will now have to be increased. That will be the subject of regulations that I will be introducing into the Parliament in the not too distant future. There are the problems of acquiring premises, recruiting staff, having interviews, placing advertisements and providing for appeals within the Public Service for people who might want to claim that they should have a position. However, I am happy to tell the House now that the date when we hope to have, or will have, the Family Law Act operating is 5 January 1976.

page 17

QUESTION

REGIONAL EMPLOYMENT DEVELOPMENT SCHEME

Mr STREET:
CORANGAMITE, VICTORIA

-My question is directed to the Minister representing the Minister for Labor. I refer to his refusal to answer the question whether there will be an allocation of funds to the Regional Employment Development scheme in the Budget. Is the RED scheme funded by Supply until 30 November? Has the RED scheme in fact already run out of money voted for it, which was to last until 30 November, because of the huge increase in demand for RED funds resulting from the Government’s causing over 250 000 people to be unemployed?

Mr RIORDAN:
ALP

– I repeat what I said earlier. The RED scheme and its future activities and funding are contained in the Budget. I want to take up again the point that the honourable gentleman raised about unemployment created by the Government. I categorically deny his assertion. Horse laughs from the Opposition do not add any more credit to that assertion. The fact of the matter is that the economy has been through a period of downturn in the same way as similar economies in western Europe, North America and Japan have gone through a downturn. The Government has illustrated over recent monthsand I believe it will illustrate it even more clearly in the immediate future- its very great concern to bring inflation under control. There is simply no doubt that the level of inflation has been responsible for a significant increase in the rate of unemployment. I believe that this is now being accepted by large sections of the community. I would simply say this to the honourable gentleman who asked the question: If he believes that unemployment in Australia can be rectified simply by having bigger and better RED schemes, I have less respect for him than 1 had previously.

page 17

QUESTION

AUSTRALIAN ECONOMY: JULY DEFICIT

Mr DAWKINS:
TANGNEY, WESTERN AUSTRALIA

– My question is addressed to the Treasurer. Did he see an article in the West Australian newspaper this morning which suggested that the Government was rocked by the July deficit? Is there any substance in the suggestion? If not, in the interests of raising the standard of economic debate in Australia will the Treasurer arrange for some special instruction to be made available for the journalist on the subject of the interpretation of national accounts?

Mr HAYDEN:
Treasurer · OXLEY, QUEENSLAND · ALP

-I noted the comment in the West Australian this morning. The Government was not rocked. We were well aware of the dimensions of the deficit for the month of July. It is usual for the July monthly deficit to be bulging in comparison with other months. On this occasion there was an added reason. I ought to point out that it is also usual for the development of the deficit to be more significant in the first half of the financial year than in the second half. However, there were special circumstances that affected this July. Unusually in the second half of last financial year there was a substantial increase in Government outlays consciously injected into the economy for the purpose of supporting the private sector. In fact, over the 12- monthly period the additional outlays over those proposed in the Budget were of the order of $ 1 ,600m. It is possible to identify about $ 1 ,300m of that amount as having a fairly direct stimulatory effect for the private sector. I wonder whether anyone on the opposite side of the House would argue that stimulation should not have been provided. If honourable members opposite do argue that way I would ask them: From under what sectors do they propose to pull the pins?

The facts are that the level of the deficit in July was anticipated. The people who advise us, the technical people who assist this Government, are the same technical people who assisted previous Liberal-Country Party governments. They were competent in these things then; they are competent now. We were well informed. As honourable members will discover from the Budget tonight, an appropriate calculation has been made for this and for all other factors in the economic management of the country over the next 12 months. The last proposition put forward by the honourable member is an interesting one and I will consider it.

page 18

QUESTION

RANGER PROJECT

Mr Kevin Cairns:
LILLEY, QUEENSLAND · LP

– My question to the Prime Minister comprises 5 sentences. What arrangements for profit sharing have been made between the participants in the Ranger project? How will supervision of the accounts and the revenue from the project be exercised? What part will the Auditor-General and/or the Government play in that supervision? What are the proposed sources of public money for the project? Have any efforts been made to obtain loans overseas or is it intended to obtain loans overseas for the Ranger project?

Mr WHITLAM:
ALP

-The arrangements for Ranger are the same as announced to the House last October. I expect that within the next few weeks there will be further discussions between the Australian Government and the Ranger interests.

page 18

QUESTION

LEADER OF THE OPPOSITION

Mr KEATING:
BLAXLAND, NEW SOUTH WALES

– I ask a question of the Prime Minister. Have the pleas of the Leader of the Opposition for ‘minimum controls over the pursuit of alternative life styles compatible with human dignity’ had any impact upon the Government’s priorities or will the Government regard this advice, as the Melbourne Age does, as imprecise, disturbing waffle?

Mr WHITLAM:
ALP

– If the Melbourne Age can bring itself to making that comment about the Leader of the Opposition I should of course hasten to endorse it. I must say that I have not followed all the vagaries of the honourable gentleman’s philosophy. The one that particularly remains in my mind, of course, is this idea of imposed equality- that is, the idea that people should attain those positions to which they were born and the devil take the hindmost. It is quite clear that in the interstices of his philosophy there is an itch to dismantle those things which the Labor Government has introduced to bring equality of opportunity to all people in Australia, whether they were born here or migrated here, wherever they live in Australia and whatever their parents’ means were. The creation of equal opportunities should be the first task of any government, and it will continue to be the first preoccupation of the present Government.

page 18

QUESTION

UNEMPLOYMENT BENEFITS

Mr O’KEEFE:
PATERSON, NEW SOUTH WALES

– I direct my question to the Minister representing the Minister for Social Security. Is it a fact that many thousands of young Australians are drawing full unemployment benefits and living in our coastal areas? Has the number of young people living in the areas mentioned and seeking social security benefits doubled in the past 7 months? What action does the Government intend to take to make sure that these people can be gainfully employed or work for the social security assistance being given to them, thus making a contribution for the benefit of the nation?

Mr STEWART:
Minister for Tourism and Recreation · LANG, NEW SOUTH WALES · ALP

– It is not true that many thousands of young people living on the coast of Australia are drawing unemployment benefits. It is the intention of the Government to make absolutely certain that anyone who is in receipt of social security benefits receives them because they are due to him and not because he is infringing the regulations in any way. The Department of Social Security carries out work tests and makes checks on the people who are receiving unemployment benefits. In the last few months in particular many young people and others have had their unemployment and sickness benefits discontinued because they have been detected infringing the regulations. It is the Government’s intention to review continuously the payment of social security benefits to make certain that they are paid only to people who are entitled to receive them.

page 18

QUESTION

SUPERPHOSPHATE SUBSIDY

Mr DUTHIE:
WILMOT, TASMANIA

-I ask the Prime Minister: Did the Cabinet have before it last week the Industries Assistance Commission interim report recommending restoration of the superphosphate subsidy? Was a decision made by Cabinet for or against that recommendation, or did Cabinet refer the question to the Government Resources Committee? If the latter is so, were not Press reports that Cabinet had rejected the recommendation wholly, utterly and mischievously false?

Mr WHITLAM:
ALP

– I do not remember seeing many reports on the subject; so I will not venture to categorise any reports as mischievous. The Government did not consider the Industries Assistance Commission interim report on superphosphate. I expect that it will be doing so at the next Cabinet meeting or the one after. The honourable gentleman mentions one of the Government committees. I have no doubt that that committee would bring down an overwhelming endorsement of the majority opinion of the IAC I am equally certain that the Government Economic Committee would bring down an overwhelming endorsement of the minority IAC opinion. So, if the honourable gentleman is seeking to give the Cabinet the benefit of committee advice on this, perhaps he could get the 2 committees together. I would imagine that then we would be dealing with a majority report and a minority report. As the honourable gentleman knows, in all these matters the Government publishes the report as early as possible. It also seeks the advice of all the relevant departments.

page 19

QUESTION

PRE-BUDGET DISCUSSIONS

Mr HYDE:
MOORE, WESTERN AUSTRALIA

– My question is addressed to the Prime Minister. Is it true that only 4 members of the 27-man Ministry met representatives of primary industry for pre-Budget discussions and that one of those members could not or would not spare the time to sit through those discussions? Is it true that the 3 Ministers who sat through the discussions were the Minister for Environment, the Minister for Tourism and Recreation and the Minister for Aboriginal Affairs?

Mr WHITLAM:
ALP

– I do not know, Sir.

page 19

QUESTION

MEDIBANK

Mr MORRIS:
SHORTLAND, NEW SOUTH WALES

-I ask the Minister Assisting the Minister for Social Security: What action can the Australian Government take to prevent the heartless, callous and iniquitous practice being followed by some general practitioners in demanding payment in advance, at rates oftentimes in excess of the scheduled fee, from invalid and age pensioners before they will provide medical attention?

Mr STEWART:
ALP

– I do not know what one can do with people who deliberately set about to infringe an Act of Parliament and who refuse to abide by the regulations which are laid down. That is not the only thing which is happening with doctors under the Medibank system. Some doctors are refusing to refer patients to a specialist because that specialist is bulk billing. It is entirely unjust for people to suggest that we are wrong in introducing Medibank. We are trying to introduce in Australia a health scheme which the people want. For the medical profession to take the action it is taking to try to sabotage Medibank is, to me, absolutely callous, as the honourable member has said. We will continually review the activities of the medical profession and of chemists who act as agents under Medibank to see that the people of Australia receive the benefits of a health system to which they are entitled.

page 19

QUESTION

APPOINTMENT TO THE AUSTRALIAN HOUSING CORPORATION

Mr McLEAY:
BOOTHBY, SOUTH AUSTRALIA

– Is the Minister for Urban and Regional Development aware that the Government has a commitment to appoint a nominee of the Returned Services League of Australia to the

Board of the Australian Housing Corporation? If so, what steps are being taken to make that appointment?

Mr UREN:
Minister for Urban and Regional Development · REID, NEW SOUTH WALES · ALP

– The Government has no commitment in this respect. The nomination of the Returned Services League of Australia was considered by Cabinet. It made its decision. At no time was there any commitment by the Government to the RSL. That is a falsity.

page 19

QUESTION

SOUTH AUSTRALIAN ELECTIONS

Mr YOUNG:
PORT ADELAIDE, SOUTH AUSTRALIA

-Has the Minister for Services and Property studied the recent South Australian election for the Legislative Council which, for the first time, was elected on a system of optional preferential voting? Has there been any complaint about the system used or any suggestion by any political party that the system should be altered for future elections?

Mr DALY:
Minister for Services and Property · GRAYNDLER, NEW SOUTH WALES · ALP

– I have studied the results of the South Australian elections. They were very satisfactory from every point of view. They even resulted in a change of leadership in the Liberal Party. The results of the elections, particularly for the Upper House, indicated that optional preferential voting is a very effective method of giving democracy in a real way to all people in the country. I noticed that in South Australia 6 Australian Labor Party members were elected to the Upper House, with 3 Liberal Party members and 2 Liberal Movement members. Under the optional preferential system one had only to vote on a group basis for one candidate. As a matter of fact, on one occasion in this Parliament that method was suggested to this House by that outstanding radical, the honourable member for Sturt. It is a method which commends itself to a lot of people throughout the country.

Until 1973 in South Australia the Liberal Party had 16 members in the Upper House and the Australia Labor Party 4 members. In other words, voting for the Legislative Council was under restrictive franchise and most undemocratic. Thanks to the optional preferential system real democracy prevails in South Australia as far as the election of members to the Upper House is concerned. It has now 10 members of the Australia Labor Party, 9 members of the Liberal Party and 2 members of the Liberal Movement. I believe the optional preferential system of voting is one of the most democratic advances which this country can endorse. It was opposed by the Opposition in another place, and here also, when we sought to introduce it for Senate elections, but in South Australia there has been no complaint by any section of the community or any political party about the result or the methods employed.

Might I just give a bit of advice, which I rarely give to those opposite? They should follow the example of South Australians, introduce an optional preferential system in accordance with what has been presented to the Australian Parliament by the present Government, and in that way we would get the democratic results that have come on this occasion to the South Australian Upper House.

page 20

VIETNAM

Mr WHITLAM:
Prime Minister · Werriwa · ALP

-For the information of honourable members I present, as I promised in my statement in the House on 13 May, a paper prepared for the Government by the Department of Foreign Affairs entitled: ‘Australia’s Military Commitment to Vietnam’.

Motion (by Mr Daly) proposed:

That the House take note of the paper.

Debate (on motion by Mr Peacock) adjourned.

page 20

NUCLEAR WEAPONS

Mr WHITLAM:
Prime Minister · Werriwa · ALP

-For the information of honourable members I present the final declaration made on 30 May by the review conference of parties to the Treaty on Non-proliferation of Nuclear Weapons.

page 20

RADIO

Mr WHITLAM:
Prime Minister · Werriwa · ALP

-For the information of honourable members I present the report on radio by the Priorities Review Staff made in August last.

page 20

PAPUA NEW GUINEA: SUPERANNUATION

Mr HAYDEN:
Treasurer · Oxley · ALP

-Pursuant to section 16 of the Superannuation (Papua New Guinea) Ordinance 1951-71I present the Twentieth and Twenty-first Annual Reports of the Papua New Guinea Superannuation Board for 1970-71 and 1971-72 respectively.

page 20

CATTLE TICK

Dr PATTERSON:
Minister for Northern Australia · Dawson · ALP

– For the information of honourable members I present the report of the Cattle Tick Control Commission on ‘Cattle Tick in Australia’.

page 20

CHICKEN MEAT

Dr PATTERSON:
Minister for Northern Australia · Dawson · ALP

– Pursuant to section 16 of the Chicken Meat Research Act 1969 I present the fifth annual report of the Australian Chicken

Meat Research Committee for the year ended 30 June 1974.

page 20

AUSTRALIAN AGRICULTURAL COUNCIL

Dr PATTERSON:
Minister for Northern Australia · Dawson · ALP

– For the information of honourable members I present the resolution of the ninety-second meeting of the Australian Agricultural Council held in Melbourne on 28 April 1975.

page 20

COMMONWEALTH TEACHING SERVICE

Mr BEAZLEY:
Minister for Education · Fremantle · ALP

– Pursuant to section 52 of the Commonwealth Teaching Service Act 1972-73 I present the annual report of the Commonwealth Teaching Service for 1974.

page 20

ADVANCED EDUCATION

Mr BEAZLEY:
Minister for Education · Fremantle · ALP

– For the information of honourable members I present the fourth triennial report on advanced education by the Commission on Advanced Education, together with a statement on that report.

page 20

INDUSTRIES ASSISTANCE COMMISSION

Mr Lionel BOWEN:
KingsfordSmithMinister for Manufacturing Industry · ALP

– For the information of honourable members I present reports of the Industries Assistance Commission on cosmetics and toilet preparations, new land farms, production of gold and heat transfer printing paper.

page 20

REMUNERATION TRIBUNAL

Mr Lionel BOWEN:
KingsfordSmithMinister for Manufacturing Industry · ALP

– Pursuant to section 7 (7) of the Remuneration Tribunal Act 1973-74 I present 5 determinations by the Remuneration Tribunal, each dated 12 May 1975.

page 20

GRANTS COMMISSION

Mr Lionel BOWEN:
KingsfordSmithMinister for Manufacturing Industry · ALP

– Pursuant to section 25 of the Grants Commission Act 1973-75 I present the report by the Grants Commission on applications for financial assistance for local government for the financial year 1975-76.

page 20

MEDICAL RESEARCH TRIBUNALS

Dr EVERINGHAM:
Minister for Health · Capricornia · ALP

-Pursuant to section 9 of the Medical

Research Endowment Act 1937 I present a report titled ‘ Medical Research Projects, 1973’

page 21

TROPICAL MEDICINE

Dr EVERINGHAM:
Minister for Health · Capricornia · ALP

– For the information of honourable members I present a report of a committee of review on the School of Public Health and Tropical Medicine.

page 21

TRADE PRACTICES COMMISSION

Mr ENDERBY (CanberraAttorneyGeneral) Pursuant to section 171 of the Trade Practices Act 1974-75 I present the first annual report of the Trade Practices Commission for the year ended 30 June 1975.

page 21

BILLS RETURNED FROM THE SENATE

The following Bills were returned from the Senate without amendment or request:

Grants Commission Bill 1975

Australian Bureau of Statistics Bill 1975

Australian Heritage Commission 1975

Health Insurance Bill 1975

National Gallery Bill 1975

Loan (War Service Land Settlement) Bill 1975

Trade Practices Bill 1975

Conciliation and Arbitration Bill 1975

Dried Fruits Export Charges Bill 1975

Dried Fruits Levy Bill 1975

Victoria Grant (Seymour Flood Mitigation) Bill 1 975

National Capital Development Commission Bill 1975

States Grants (Advanced Education) Bill 1 975

States Grants (Universities) Bill 1975

Railways (South Australia) Bill 1 975

Railways (Tasmania) Bill 1975

Tasmania Grant (Associated Pulp and Paper Mills Ltd) Bill 1975

Customs Tariff( Anti-Dumping) Bill 1975

Customs Bill 1975

Customs Tariff Validation Bill 1975

Ship Construction Bounty Bill 1975

Urban and Regional Development (Financial Assistance) Bill 1975

Income Tax Assessment Bill 1975

States Grants (Beef Industry) Bill 1975

Wool Tax Bills (Nos 1 to 5) 1975

Dairy Produce Bill 1975

Dairy Produce Sales Promotion Bill 1975

Northern Territory Supreme Court Bill 1 975

Great Barrier Reef Marine Park Bill 1 975

page 21

ASSENT TO BILLS

Assent to the following Bills reported:

Racial Discrimination Bill 1975

Children’s Commission Bill 1975

Trade Union Training Authority Bill 1975

Family Law Bill 1975

Postal Services Bill 1975

Telecommunications Bill 1975

Postal and Telecommunications Commissions (Transitional Provisions) Bill 1975

Australian Heritage Commission Bill 1975

Health Insurance Bill 1975

Grants Commission Bill 1 975

Australian Bureau of Statistics Bill 1975

National Gallery Bill 1975

Loan (War Service Land Settlement) Bill 1975

Trade Practices Bill 1975

Conciliation and Arbitration Bill 1975

Victoria Grant (Seymour Flood Mitigation) Bill 1975

National Capital Development Commission Bill 1 975

States Grants (Advanced Education) Bill 1 975

States Grants (Universities) Bill 1975

Railways (South Australia) Bill 1975

Railways (Tasmania) Bill 1975

Tasmania Grant (Associated Pulp and Paper Mills Limited) Bill 1975

Dried Fruits Levy Bill 1975

Dried Fruits Export Charges Bill 1 975

Urban and Regional Development (Financial Assistance) Bill 1975

Aboriginal and Torres Strait Islanders (Queensland Discriminatory Laws) Bill 1975

Customs Tariff (Anti-Dumping) Bill 1975

Customs Bill 1975

Customs Tariff Validation Bill 1975

Ship Construction Bounty Bill 1975

Income Tax Assessment Bill 1975

States G rants ( Beef Industry ) Bill 1975

Dairy Produce Bill 1975

Dairy Produce Sales Promotion Bill 1 975

Northern Territory Supreme Court Bill 1975

Great Barrier Reef Marine Park Bill 1975

Wool Tax Bills (Nos 1 to5) 1975

page 21

JOINT COMMITTEE ON THE AUSTRALIAN CAPITAL TERRITORY

Mr SPEAKER:

– I have received advice from the Leader of the Opposition in the Senate that he has nominated Senator Davidson to be a member of the Joint Committee on the Australian Capital Territory to fill the vacancy caused by the resignation of Senator Sir Kenneth Anderson.

page 21

PUBLICATIONS COMMITTEE

Mr McKENZIE:
Diamond Valley · ALP

-I have the honour to bring up the eighth report by the Publications Committee of this House sitting in conference with the Publications Committee of the Senate. Copies of the report have been circulated to honourable members in the chamber.

Report-by leave- agreed to.

page 21

CUSTOMS TARIFF PROPOSALS

Mr ENDERBY:
Attorney General · Canberra · ALP

– I move:

The customs tariff proposals I have just tabled relate to proposed amendments to the Customs Tariff 1966-1974. These proposals formally place before Parliament, as required by law, tariff changes introduced by gazette notices during the last recess. The changes arise from the Government’s decisions on the recommendations of the Textiles Authority in its report on certain yarns and textile products and of the Industries Assistance Commission in its report on nitrogenous fertilizers.

Also included in the proposals are the addition of further commodities to Schedule A of the New Zealand- Australia Free Trade Agreement and a modification of the developing countries’ preference in respect of toy balloons. Changes of an administrative nature in the footwear area of the tariff have also been made to remove certain redundant provisions. A comprehensive summary setting out the nature of the changes and the origin of each of the alterations contained in the proposals is now being circulated to honourable members. I commend the proposals.

Debate (on motion by Mr Adermann) adjourned.

page 22

SUPERANNUATION BILL 1975

Message received from the Senate intimating that it insists upon the amendments made to this Bill by the Senate and disagreed to by the House of Representatives.

Motion ( by Mr Stewart) agreed to:

That the amendments be taken into consideration in the Committee of the Whole forthwith.

In Committee

Consideration of Senate’s amendments. Senate’s amendmentsNo. I- In clause 3, sub-clause (1), leave out ‘60 years’, insert ‘65 years’.

No. 2-In clause 3, sub-clause (1), leave out ‘60 years’, insert ‘65 years’. .No. 3- In clause 3, sub-clause (I), leave out ‘60 years’, insert ‘65 years’.

No. 4- In clause 3, sub-clause (I), leave out ‘60 years’, insert ‘65 years’.

No. 5- In clause 3, sub-clause (1), leave out ‘60 years’, insert ‘65 years’.

No. 6-In clause 3, sub-clause (1), leave out ‘60 years’, insert ‘65 years’.

No. 7- In clause 3, sub-clause ( 1 ), leave out ‘60 years’, insert ‘65 years’.

No. 8- In clause 7, sub-clause (2), leave out ‘60 years’, insert ‘65 years’.

No. 9- In clause 9, sub-clause ( I ), leave out ‘60 years’, insert ‘65 years’.

No. 10- In clause 9, sub-clause (2), paragraph (d), leave out ‘ 60 years ‘, insert ‘ 65 years ‘.

No. 1 1- In clause 9, sub-clause (3), leave out ‘60 years’, insert ‘65 years’.

No. 12- In clause 9, sub-clause (4), paragraph (b), leave out ‘ 60 years ‘, insert ‘ 65 years ‘.

No. 13- In clause 9, sub-clause (5), paragraph (b), leave out ‘60 years’, insert ‘65 years’.

No. 14- In clause 56, sub-clause ( 1 ), leave out ‘60 years ‘, insert ‘65 years’.

No. 15- In clause 57, sub-clauses (1) and (2), leave out the sub-clause, insert the following sub-clause:

No. 16- In clause 59, sub-clause (2), paragraph (a), leave out ‘60 years’, insert ‘65 years ‘.

No. 17- In clause 59, sub-clause (2), paragraph (b), leave out ‘60 years ‘, insert ‘65 years ‘.

No. 18- In clause 59, sub-clause (3), leave out ‘60 years’, insert ‘65 years’.

No. 19- In clause 59, sub-clause (3), paragraph (a), leave out’60 years’, insert’65 years’.

No. 20- In clause 6 1 , leave out ‘60 years’, insert ‘65 years’.

No. 21- In clause 61, leave out ‘60th anniversary’, insert ‘65th anniversary’.

No. 22- In clause 62, sub-clause (1), paragraph (a), leave out ‘ 60 years ‘, insert ‘ 6 5 years ‘.

No. 23- In clause 62, sub-clause ( 1 ) paragraph (a), leave out ‘60th anniversary’, insert ‘65th anniversary’.

No. 24- In clause 62, sub-clause (3), leave out ‘60th anniversary’, insert ‘65th anniversary’.

No. 25-In clause 62, sub-clause (3), leave out ‘60 years’, insert’65 years’.

No. 26- In clause 67, sub-clause (1), leave out ‘60 years’, insert ‘65 years’.

No. 27- In clause 67, sub-clause (2), paragraph (a), leave out ‘ 60 years ‘, insert ‘ 65 years ‘.

No. 28- In clause 67, sub-clause (3), leave out ‘60 years’, insert’65 years’.

No. 29- In clause 68, sub-clause (2), leave out the subclause.

No. 30- In clause 69, sub-clause (3), leave out the subclause.

No. 31- In clause 75, sub-clause (1), leave out ‘60 years’, insert ‘65 years’.

No. 32- In clause 77, sub-clause (2), paragraph (c), leave out ‘ 60 years ‘, insert ‘ 65 years ‘.

No. 33- In clause 79, sub-clause ( I ), leave out ‘60 years’, insert ‘65 years’.

No. 34- clause 86, sub-clause (1), leave out ‘60 years’, insert’65 years’.

No. 35- In clause 86, sub-clause ( 1 ), leave out ‘60 years’, insert ‘65 years’.

No. 36- In clause 86, sub-clause (2), paragraph (a), leave out ‘60 years ‘, insert ‘65 years ‘.

No. 37- In clause 98, sub-clause (1) paragraph (a) leave out ‘60 years ‘, insert ‘65 years ‘.

No. 38- In clause 99, sub-clause (1), paragraph (a), leave out ‘60 years’, insert ‘65 years ‘.

No. 39- clause 100, sub-clause (1), paragraph (a), leave out ‘ 60 years ‘, insert ‘ 65 years ‘.

No. 40- clause 101, sub-clause (1), paragraph (a), leave out ‘60 years ‘, insert ‘65 years ‘.

No. 41- clause 102, sub-clause (1), paragraph (a), leave out’60 years’, insert’65 years’.

No. 42- clause 103, sub-clause (1), paragraph (a), leave out ‘60 years ‘, insert ‘65 years ‘.

No. 43-clause 103, sub-clause (2), paragraph (a), leave out ‘ 60 years ‘, insert ‘ 65 years ‘.

No. 44-clause 104, sub-clause (1), paragraph (a) leave out ‘ 60 years ‘, insert ‘ 65 years ‘.

No. 45- clause 104, sub-clause (2), paragraph (a), leave out’60 years’, insert’65 years’.

No. 46- clause 105, sub-clause (1), paragraph (a), leave out ‘ 60 years ‘, insert ‘ 65 years ‘.

No. 47- clause 105, sub-clause (2), paragraph (a) leave out ‘ 60 years ‘, insert ‘ 65 years ‘.

No. 48- clause 143, sub-clause (2), paragraph (d), leave out ‘ 60 years ‘, insert ‘ 65 years ‘.

No. 49- clause 143, sub-clause (6), leave out ‘60 years’, insert’65 years’.

No. 50- clause 144, sub-clause (1), leave out ‘60 years’, insert’65 years’.

No. 51- clause 145, sub-clause (1) paragraph (b), leave out ‘ 60 years ‘, insert ‘ 65 years ‘.

No. 52- clause 149, sub-clause (9), leave out ‘60 years’, insert’65 years’.

No. 53- clause 149, sub-clause ( 10), paragraph (a), leave out ‘60 years ‘, insert ‘65 years’.

No. 54- clause 151, sub-clause (1), after ‘pension’ (second occurring), insert’, additional age retirement pension by virtue of section 58, additional early retirement pension by virtue of section 62, or spouse’s additional pension by virtue of section 84’.

No. 55- clause 153, leave out the clause.

No. 56- after clause 185, insert the following new clause: ‘ 1 85a ( I ) Any eligible employee referred to in the last preceding section who immediately preceding the commencement day would have been entitled to benefits under the superseded Act upon his retirement on attaining the age of either 60 or 65 years may elect to continue his contributions under that Act and to receive benefits in accordance with the provisions thereof. ‘(2) The contributions of any eligible employee making an election under sub-section ( I ) who would have been entitled to benefits under the superseded Act upon attaining the age of 65 years shall be increased to the level of contributions applicable to persons who have been entitled to benefits under the superseded Act upon attaining the age of 60 years. ‘(3) An election under sub-section (1) shall be made by notice in writing served on the Commissioner within such period as is prescribed. ‘(4) An eligible employee who makes an election pursuant to this section and who complies with the requirements of that Act shall be entitled to receive benefits under the superseded Act and the superseded Act shall continue in force and apply in relation to such requirements and entitlements as if this Act and the Superannuation Act Amendment Act 1975 had not been passed. ‘.

No. 57- Schedule I , leave out the Schedule.

No. 58-Schedule 3, leave out the Schedule.

Mr STEWART:
Minister for Tourism and Recreation · Lang · ALP

– I move:

On 5 June 1975, the House disagreed to the amendments that the Senate had made earlier that day to the Superannuation Bill 1975. The reasons adopted by the House for disagreeing to the amendments were:

Because the superannuation arrangements for Australian Government employees that would result from the amendments proposed would be detrimental to many existing contributors to the present superannuation pension scheme: would compare unfavourably with the superannuation schemes maintained by the State governments for their employees; and would result in complex and difficult administrative arrangements.

The Senate, however, on 1 1 June 1975 decided to insist on the amendments.

The Senate amendments change the new superannuation scheme in the following way: The standard Government-financed retirement pension benefit of 50 per cent of final salary would be available only on retirement at age 65 after 30 years contributory service with reduced benefits for retirement before that age so as to provide a 40 per cent of final salary pension at age 60. Because this would result in a reduction in benefits presently attainable on retirement before age 65, existing pension scheme contributors would be allowed to continue under the conditions of the present scheme providing that they contributed at the higher age 60 retirement rates. The supplementary Government-financed pension of one-half of one per cent of salary for each year of contributory service in excess of 30 years before reaching age 60, which would lift the maximum Government-financed pension from 50 per cent of salary after 30 years to 55 per cent after 40 years, would be eliminated. The one times consumer price index post-retirement updating of new age retirement pensions would be confined to the Government-financed element.

It is estimated that, with the amendments of the Senate, contributors to the present pension scheme, overall, would be 9.8 per cent worse off under the new scheme. I seek leave to incorporate in Hansard estimates prepared by the Treasury of capital costs of the new scheme, as amended by the Senate, compared to present scheme costs.

Mr SPEAKER:

-Is leave granted? There being no objection, leave is granted. (The document read as follows)-

NEW SUPERANNUATION SCHEME IF AMENDED AS PROPOSED BY THE SENATE ESTIMATED CAPITAL COSTS COMPARED TO PRESENT SCHEME COSTS Note. The following estimates have been prepared on the same general basis as those contained in paragraphs 90 to 93 of the Explanatory Memorandum on the Superannuation Bill 1 975 circulated by the former Treasurer
Mr STEWART:

– I thank the House. By far the worst feature of the Senate amendments is the option provision that would allow contributors to the present pension scheme to remain in that scheme providing they contributed at the higher age 60 retirement rates. The problems and defects of the present pension scheme are well documented. It is most complex and expensive to administer and is rapidly becoming unworkable. Yet the option provision would require the scheme to be continued for many years into the future, conjointly with the present scheme. Moreover, for older contributors the option would be largely worthless. The choice for the older age 60 contributors would be either to accept the lower overall benefits of the new scheme, as amended by the Senate, or to condemn themselves to penury by remaining in the present scheme and trying to meet rapidly escalating contributions in their last years of service. The older age 65 contributors would be faced with an immediate substantial increase in their contributions to the age 60 basis if they elected tc remain in the present scheme, in most cases far beyond their capacity to pay.

Older contributors therefore would have little alternative but to accept transfer to the new scheme. Younger contributors, particularly those already contributing on an age 60 basis, faced with higher immediate contributions under the new scheme and not attracted by the lower overall benefits of the new scheme, would be most likely to elect to remain in the present scheme. It is these contributors who would ensure that the present scheme would need to be continued with all the attendant administrative problems and complexities. The situation would be worse than that which existed with defence forces retirement benefits from 1959 until 1972.

I seek leave to incorporate in Hansard a statement providing 34 examples, calculated by the Australian Government Retirement Benefits Office, of the immediate increases in contributions, expressed for convenience as percentages of salary, that would result upon members of various ages, salaries and length of service changing from age 65 to age 60 contributions.

Mr SPEAKER:

-Is leave granted? There being no objection, leave is granted. (The document read as follows)-

Mr STEWART:

– I thank the House. The schedule also illustrates the very low contribution rates at young ages and the punitive rates at older ages that are characteristic of the present pension scheme. There is an urgent need to replace the present superannuation scheme for Australian Government employees but the new scheme, as amended by the Senate, would not be a reasonable alternative. An already difficult situation would be aggravated and widespread dissatisfaction throughout the Public Service and the other areas of Australian Government employment already covered by the Superannuation Act would surely result.

The Government considers that, in the Superannuation Bill 1975, it has a reasonable solution to the problem of superannuation for Australian Government employees. The Senate ‘s failure to pass the legislation has meant that the new scheme could not come into operation on 1 July 1975, the date of commencement specified in the Bill. Because of the very serious difficulties that would be associated with retrospective operation of the new scheme the Govenment therefore proposes to put aside the present Bill and shortly to introduce a new Bill in the same form, but providing for the scheme to come into operation from a date to be proclaimed.

Mr GARLAND:
Curtin

-The Opposition will vote against this motion. I want to draw attention immediately to the attitude displayed by the Minister for Tourism and Recreation and Minister Assisting the Treasurer (Mr Stewart) in the prepared speech which he delivered in this House, a copy of which he handed to me 2 minutes ago for the first time. His speech underlined the attitude taken by the Government in this matter from the beginning which is that it is the perfect scheme. The Government offers this scheme to the Parliament, to the taxpayers as well as to Government employees on a take it or leave it basis- an all or nothing approach. That has been the attitude of the Minister and of other Ministers not only in this House but in the Senate. Their attitudes have been revealed as the debate has unfolded.

We, of course, have just had a lengthy recess. This matter reached a deadlock situation because of the action taken by the Government in June this year. At no time during that recess did the Government mention to the Opposition what it was thinking about this matter. It did not indicate whether there could be a meeting of the minds on some of the points. The Government’s attitude is that there is nothing to be said for any of the Opposition’s amendments and that it will bring in a new Bill to deal with the situation. The Australian Labor Party is the Government. It has to govern and has to deal with the existing situation. The attitude that, after all the discussions that have taken place, Parliament should not be permitted to make any amendments to the Bill, that there ought not to be any changes to this scheme because it is of such great perfection, is obviously silly. Indeed, representations have been made to me by people relying on advice that has been given by the Government and, indeed, by some of its advisers that that is the attitude of the Government and that we, in the Opposition, had something of a cheek to disagree in any way with these proposals. If that were the case what is Parliament for?

I should like to refer to one or two matters in the relatively short time I am permitted to speak because this matter will continue obviously in the future. It must. I start off with the point that an all or nothing approach was the attitude of the

Government. When I stood in this place last, in June, the Minister for Tourism and Recreation, who is sitting at the table, could not wipe the grin off his face. He thought he had an election winner and that it would see the Government through because of the great number of Commonwealth employees concerned. The AttorneyGeneral (Mr Enderby) who is in the chamber- I am not sure whether he made a speech or interjectedindicated he was very pleased that this situation had arisen. Now, of course, they are not so sure that they are on an election winner and the tone is more muted.

The Minister for Tourism and Recreation talked about what happened on 5 June. He did not add, as he could have, that when we sought to respond on 5 June the debate was gagged by his colleagues who are sitting on the benches behind him at this moment. The Minister went on to recite the reasons adopted by the House. I hope that he will be gracious enough to recall that the Opposition voted against those reasons and that what he calls the decision of the House was a motion supported by Labor Party supporters only. Of course, the way the motion reads is biased. It talks about our proposals being detrimental to existing contributors- although that has been explained- and speaks of our proposals comparing unfavourably with superannuation schemes maintained by the State governments. We have explained ad nauseam that changes made in the schemes in two of the States flowed from the proposals of this Government. The changes in those schemes were as a result of those proposals. I believe that those States will rue the day they took that action.

We in this place have a responsibility to look at Government proposals and proposed laws and to decide what is responsible and what is not. We recognise that the present superannuation scheme needs to be changed. We have emphasised every time this matter has come up for debate, and on behalf of the Opposition in Press releases and statements that I have prepared, the features of the new scheme that we think are desirable. But, when our amendments were moved, who was it who allowed the deadlock to continue so that the new scheme could not come into operation? It was the Government. The Government’s insistence on that deadlock has meant members in their latter years of service will have to keep on paying the onerous contributions. The Minister for Tourism and Recreation has described these contributions as punitive rates. Of course they are punitive rates. This is the main disability in the present scheme. For the needs of most people, it must be changed. But, if the Government allows a situation to develop in which it will not accept amendments dealing with 3 areas of the whole superannuation package, that position will continue.

In its statement, the Government says that it has found a reasonable solution. We believe that the solution that was found to the problems was unreasonable. In any package of superannuation proposals there is in each feature a range from generous to less generous. What the Government did in its proposals, we believe, was to choose the most generous aspect of every feature. We have pointed out four of these over-generous aspects and the Senate has agreed with three of them. We believe that those 4 aspects were overgenerous. We have sought to amend not the whole scheme but the proposals in those areas. There has been a deliberate muddying of the pool by the Government.

Mr Stewart:

– You sound as though you are regretting your action.

Mr GARLAND:

– You read your speech. It was carefully written by someone else. Perhaps you will allow me, in the 7 minutes that I have left -

Mr SPEAKER:

– Order! I suggest that the honourable gentlemen on my right remain silent and that the honourable gentleman who is addressing the House address the Chair.

Mr GARLAND:

– I was doing that, as you are aware, Mr Speaker -

Mr SPEAKER:

– Order! I do not think you were. I have asked you to do so.

Mr GARLAND:

– I was doing that. I wish to touch on some of the points which have been raised. My time is limited. No doubt the Minister for Tourism and Recreation will not seek to give me an extension of time to deal with these points which have been raised by way of criticism.

I refer, first of all, to the policy of the Opposition in respect of the normal retiring age. We took considerable interest in the evidence that exists as to what should be the normal proper retiring age and came to the conclusion that the proper one was 65 years. The new scheme put forward by this Government proposed a normal retiring age of 60 years on full pension. The adoption of that retiring age would have resulted in a 30 per cent increase in the cost of the scheme. This increase would have been brought about by paying a pension for an additional 5 years and meeting the consumer price index adjustments to that pension. We referred to a schedule that was attached to the Bill as there was an indication in that schedule that people were to be encouraged later to retire at 55 years or between 55 years and 60 years. We noted that there was a discounting of 4 per cent of the pension for each year below 60 years. We thought that that was an appropriate discounting to make in respect of the pension paid to any contributor who retired at an age earlier than 65 years. That scale relating to a retiring age between 55 years and 60 years is indicative of the direction in which the Government was pointed in its approach to this matter. In this one area there would be a 30 per cent greater cost to the Australian taxpayers if a contributor was to retire at age 60 instead of age 65.

We believe that the proper retiring age is 65. years. To say, as many people have, that by our proposal we are forcing employees to work to age 65 is playing fast and loose with the truth. The terms and conditions of employment are laid down in the Public Service Act and other Acts. It is for a member to decide when he wishes to retire. The question here is what amount of pension a member should receive on retirement at a given age. The Opposition says that, for a member retiring at 60 years, the payment of 80 per cent of full pension is a reasonable discounting as it is the rate of discounting which the Government was prepared to introduce for a lower age of retirement. The new scheme provides for a contributor the right to take a lump sum payment, together with other rights. The Minister would be aware that most of the conditions concerning existing members were to be covered by regulations. He has not let us see any draft regulations. We do not know what those details were to be. We would have envisaged that members who under our scheme opted to stay in the existing scheme would have perhaps some of those rights given to them including, among others that we could consider, the change in respect of the position of widows.

This raises a matter of which I spoke earlier, namely, the need for some give and take and some discussion on this matter. By its whole manner and attitude, the Government has refused to do this. I might add that this is demonstrated particularly by the antagonism the Government displayed in the debate on these proposals in the Senate. As a result, these matters cannot have been fully discussed in a reasonable way because there has been no reasonable approach. Apparently we must now wait until this new Bill is presented to see what range of features it offers and how much the Government may wish to see itself in the role of buying votes and of being over-generous again. Perhaps it will be’ identical.

At times when I hear Ministers and other Labor supporters speak about these proposals I wonder whether they really know the costs that are involved in this scheme. What about the unions representing blue collar workers and also pensioner organisations which are complaining so much about these proposals? They are properly asking: Why is it that this Labor Government should be giving such advantages to one sector of the community? Why is it putting those in the Government service in such a superior position to those in superannuation schemes outside the Government service or indeed to those who have no superannuation schemes at all? The figures from the Government Actuary- these were produced pretty well at the last minute, when the debate on this matter was last heldshowed that if the Commonwealth were to set aside money for a funded scheme, which it does not do, approximately 23 per cent of the salaries and wages paid to Government employees would be required to meet the cost of that scheme. That is based on certain long range assumptions, including an inflation rate of 3.9 per cent and an interest rate of 5.5 per cent. It is very difficult to believe in the present conditions that even over a long period such rates are likely to be the case.

We recognise that there would be some members in the existing scheme who would wish to stay where they are. On the principle that a promise has been made to them in that respect we believe that it is right to say to those people that if they want to stay in it is reasonable for them to opt for the existing scheme, although frankly I do not believe that many would stay in the existing scheme, in spite of some of the comments that have been made in this place. It can be a matter of judgment only. I do not believe that many would stay in the existing scheme. I think that some contributors in their last year or two of service might contemplate it. I doubt whether younger people would want to be locked into a position in which they thought they would remain for the rest of their service. There is a limit to what can be done in relation to the making of some sort of amendment from the Opposition side of the chamber. We of the Opposition are not in the position to make sweeping changes to the scheme and to look again at some of these things from the beginning. Broadly speaking, we can only lay down the general principles of what we believe should be the case and identify areas of over-generosity. If the Government digs in its heels and will not do anythingthat has been the situation until now- there is very little that we can do about it. The AttorneyGeneral refused in writing to give drafting assistance.

People can point to this aspect and to that aspect and complain, but I believe that we have tried to adopt a reasonable approach to the matter. I believe also that many of the people who have been complaining have been anxious to believe the propaganda that has emanated from the Australian Labor Party and, indeed, have been misled by a few of their own trade union leaders. I think that they do not understand the cost involved and how relatively badly off are the people outside of the service of the Government who, after all, are also paying high income taxes and having their take-home pay reduced. They are not getting into a scheme that will allow them to be index-linked- tied to the consumer price index- and proofed against the ravages of inflation that is affecting the rest of the community. I have no time to go on further. The Opposition maintains its view. It is open to further consideration of the details if that is what the Government wishes. It is the Government. It has to govern. It has to face up to the situation. I think 1 have referred to enough items to make clear the Opposition’s view and in general the principles behind its adoption.

Mr ENDERBY:
CanberraAttorneyGeneral · ALP

– I would be remiss for no other reason than the fact that I am the honourable member for Canberra in this House if I were not to say a few words in reply to the remarks of the honourable member for Curtin (Mr Garland), who has just resumed his seat. One is continually surprised by the ability of the honourable gentleman to take a set of facts and twist them to his own advantage. The facts here are quite clear. One knows that there is indeed a great degree of inequity in the existing superannuation scheme. The honourable member for Curtin has conceded that. Yet he has said that in seeking to remove those inequities the Government is trying to win votes. The Government will always seek to remove inequities. The honourable gentleman has had the gall to say in defence of the action of his colleagues in the Senate that they are trying to save the taxpayers’ money and that they are trying to think of other interested groups in the community. It is well known that this proposal will not cost the taxpayers any more money. It is just a more efficient and more rational use of the existing resources of the contributions being made.

Mr Garland:

– Look at your own figures.

Mr ENDERBY:

– I can tell the honourable gentleman that the measure was thoroughly thrashed out in the party rooms of the Australian Labor Party before the final decision was taken on it because within the ranks of the Party there were a number of people who had expressed interest and concern lest the situation be what he had said it is. Every one of those doubts was put to rest because the measure was subjected to a thorough scrutiny and a thorough examination. It was referred to auditors and costed out. The Government went ahead with the measure in order to give a greater degree of equity to the quarter of a million or so public servants of the Australian Government.

Lest the honourable gentleman should underestimate the feeling on this subject, I point out that it is my understanding that the Australian Capital Territory Branch of the Liberal Party of Australia took the view that the Government takes on the subject and made representations to people on his side of the House not to be stubborn, not to be foolish and not to try and. win votes in the way in which honourable members opposite are obviously trying to win them- by appealing to some kind of prejudice outside against public servants. I understand that that branch of the Liberal Party made such representations but that its appeals fell on deaf ears. The arrogance that so often comes forward from the Liberal Party when it deals with its own colleagues in the Australian Capital Territory and that we saw manifested over 23 years revealed itself on this issue.

I should also tell the honourable gentleman another fact of life. When one speaks with the officers of the various white collar unions that speak for public servants on these matters one finds that they are almost united and speak with almost one voice on one aspect of this matter; that is, that if the amendments in the form that they have come to us from the Senate were to be accepted their acceptance would cause an even greater amount of inequity and place an even greater financial burden on public servants than the present scheme casts upon them- the present scheme that the Government knows to be wrong and wants to change and that the Opposition knows to be wrong but, speaking with 2 voices, finds a reason for opposing. That is all I wanted to say. The facts will speak for themselves. No doubt the people of Canberra and the other parts of Australia in which public servants live and work will also speak for themselves.

Mr HOWARD:
Bennelong

-The contribution that I make to this debate will be short. In view of the aspersions cast by the AttorneyGeneral (Mr Enderby) on the motives of the Opposition in relation to this matter I think it is only proper that I should say 2 things. The Opposition has not approached this matter in a political sense, in the sense of solely being concerned with currying political favour. If the Opposition had approached it in that manner the very simple, expeditious, easy option would have been to adopt the Government’s scheme in toto.

The Opposition realises that there has been criticism of its stand. I, along with other members of the Opposition, have received submissions which, I might say, have been in the main very courteously and helpfully put by leaders of the Public Service unions throughout Australia. We have listened to their points of view and can understand their interest in the matter. The fact of the matter is that the Opposition has decided that, having regard to all of the implications for the Australian economy at the present time, the stand it has taken is a reasonable one. In no way does it cut across the very many reforms which are contained in the 2 Bills which were debated during the last session. In no way does the Opposition’s stand represent a punitive attitude towards Commonwealth public servants. The Opposition believes that it does have a responsibility to all sectors of the Australian community. It believes that it has an obligation not only to those employed in the public sector but also to those employed in the private sector.

If there is one argument in the whole debate on this superannuation scheme that has not been answered by the Government and that in my belief has not been effectively answered by the leaders of the Public Service unions in Australia it is the argument that if the benefits provided under this scheme were to be matched by the private sector an intolerable financial burden, particularly in the light of present economic difficulties, would be placed upon the private sector. In all responsibility to the Australian people we cannot put aside consideration of the impact of this scheme upon the private sector. It may suit the convenience of the Government to do so but it does not suit the convenience of the Opposition. We believe that the impact of this scheme upon the private sector is a relevant consideration. That is one of the matters that weighed so heavily upon the Opposition in formulating its attitude.

I want to make one other comment about the remarks of the Attorney-General. He talked about the passage of a resolution at the Canberra Branch of the Liberal Party of Australia. I know that a resolution was passed in relation to this matter and that it was carried by a vote of something like 22 to 18, as was pointed out by the honourable member for Curtin (Mr Garland), but I really do not think that that sort of selective choosing of the actions of a particular branch of the Party really contributes very much to the debate. I could just as easily point out- I know it to be true- that some of the honourable members who sit opposite are still privately opposed to this scheme and that so are some blue collar unions. I do not think that that really contributes a great deal to the debate. It is inevitable in any matter of some controversy that there is going to be a division of opinion inside political parties, but the overwhelming consensus within the Liberal Party and the National Country Party of Australia is that whilst we warmly support the improvements contained in this scheme and the elimination of the many anomalies in it we believe that in certain defined areas it goes too far, having regard to the present economic circumstances. We believe that an intolerable financial burden would be placed upon the private sector if it tried to match the scheme. Given the newfound concern which has been expressed by some supporters of the Government towards the economic health of the private sector we are frankly surprised that they have not paid more regard to this aspect of the argument.

Question put:

That the House insists on disagreeing to the amendments insisted upon by the Senate.

The House divided. (Mr Speaker-Hon. G. G. D. Scholes)

AYES: 61

NOES: 53

Majority……. 8

AYES

NOES

Question so resolved in the affirmative.

Motion (by Mr Stewart) agreed to:

That the Bill be laid aside.

page 30

PARLIAMENTARY COUNSEL BILL 1975

Message received from the Senate intimating that the Senate insists upon the amendment made by the Senate to this Bill and disagreed to by the House of Representatives.

Motion ( by Mr Enderby ) agreed to:

That the amendment be taken into consideration in the Committee of the Whole forthwith.

In Committee

Consideration of Senate’s amendment.

Clause 3.

Section 3 of the Principal Act is repealed and the following section substituted:

Senate’s amendment-

At the end of the proposed section 3 of the Principal Act, add the following new sub-section:

In discharging the functions of the office a section of not less than two of the professional staff shall be seconded to draft proposed laws, amendments and instruments at the request of Members of the Parliament in priority to services for Ministers.

Mr ENDERBY:
General · Attorney · ALP

-I move:

Honourable members will recall this measure which proposed to make certain changes to the Parliamentary Counsel Act. The Opposition in this House sought to impose an obligation on the Office of the Parliamentary Counsel to provide certain assistance to Opposition members. The amendment proposed by the Senate is to the effect that a section of not fewer than two of the professional staff of the Office of Parliamentary Counsel should be seconded to draft proposed laws and amendments at the request of private members.

The Government’s reasons for moving that the House insist on disagreeing to the Senate amendment are the same as those which I put to the House on 3 June 1975 when the House considered the Senate amendment and disagreed to it. In short, those reasons are that the needs of private members would be less adequately met under the amendment than they are at present and that the amendment would prejudice the legislative program of the government of the day, without giving to private members a corresponding benefit.

I should add once again to what I have said before, that it is the Government’s intent to give every possible assistance to honourable members, including backbenchers, whether they be on the Government side or on the Opposition side. Honourable members will appreciate that the strains on the office of Parliamentary Counsel these days are immense. They are immense because of the Government’s very energetic and industrious program of law reform. The measures that are put into this House which go to the Senate, sometimes to be rejected there, sometimes to have amendments made there and sometimes to pass there, cast a burden of legislative activity on the office of Parliamentary Counsel which has never been equalled in the history of Australia since Federation. Although we do try to make the services of officers available, it would be counter-productive to write in a law that they must be available in the ways in which the Opposition puts forward. As I have said before, the Government could not possibly accept that situation.

Mr HOWARD:
Bennelong

-The Opposition regrets that the Government will not accept the amendment which was inserted during the Senate debate on this Parliamentary Counsel Bill 1975. The argument advanced by the Opposition is, in our belief, a very strong argument. Having regard to the remarks that were made on an earlier occasion today regarding the dignity of the procedures of this House, the Opposition wonders whether some of the things said by Government members were completely sincere. One of the important things that has to be achieved if the procedures of this House are to become more effective and if the Executive is not to have a completely untrammelled run- be it an Executive of the present Government’s political persuasion or an Executive at some time in the not too different future of the opposite persuasionthen more effective parliamentary facilities must be provided for private members. I repeat what was said in the earlier debates on this measure: The Opposition is in no way critical of the efforts of Parliamentary Counsel to assist the Opposition at present. But as the AttorneyGeneral (Mr Enderby) rightly pointed out, the legislative burden at the present time is such that it is just not possible for the type of assistance that ought to be provided to be provided. In the Opposition’s view, that is all the more reason for the insertion of the amendment that was placed in this Bill during the Senate debate.

The Attorney-General spent some time talking about the massive legislative program that the Government had undertaken. Whilst that is acknowledged, I think that many honourable members on this side of the House and people throughout the Australian community, might well think that had there been a little less legislation from this Government in many areas and a little more responsible government, we would all be a great deal better off. So it is hardly a very good excuse for the attitude that the Government is taking towards our amendment just to refer to the sheer quantity of legislation that has been passed during the lifetime of this Government. The Opposition regrets that the Government will not agree to the Senate amendment. The Opposition does not intend to change its attitude in this place on the Senate’s amendment and will accordingly vote against the motion moved by the Attorney-General.

Question put-

That the House insists on disagreeing to the amendment insisted on by the Senate.

The House divided. (Mr Speaker-Hon. G. G. D. Scholes)

AYES: 61

NOES: 56

Majority…….. 5

AYES

NOES

Question so resolved in the affirmative.

Motion (by Mr Enderby) agreed to:

That the Bill be laid aside.

page 32

STEVEDORING INDUSTRY CHARGE BILL 1975

Bill received from the Senate with a request.

page 32

PROPOSED JOINT STANDING COMMITTEE ON THE NEW AND PERMANENT PARLIAMENT HOUSE

RESOLUTION AGREED TO BY HOUSE OF REPRESENTATIVES ON 5 JUNE 1975

Mr DEPUTY SPEAKER (Dr Jenkins:
SCULLIN, VICTORIA

-I have received from the Senate the following message:

Mr Speaker,

The Senate having considered Message No. 323 of the House of Representatives has agreed to the following Resolutions in connection therewith, viz.:

  1. 1 ) That the Senate concurs in the Resolution transmitted to the Senate by Message No. 323 of the House of Representatives relating to the appointment of a Joint Standing Committee on the new and permanent Parliament House, subject to the following modifications:

    1. paragraph (1), after’appointed’, insert’(a)’;
    2. paragraph (1), at end of paragraph add the following new sub-paragraph: ‘(b) to investigate and recommend what Departments and persons be removed from the Parliament to provide each and every Senator and Member with-
    1. an office for his sole use and occupation; and
    2. office space for a secretarial/legislative assistant.;

    3. paragraph .(10), leave out the paragraph, insert the following paragraph: ‘( 10) That the Committee have power-
    4. in respect of the matter referred to in sub-paragraph (1) (a), to report from time to time; and
    5. in respect of the matter referred to in sub-paragraph ( 1 ) (b), to report on or before the 1st day of November 1975, and that any member of the Committee have power to add a protest or dissent to any report. ‘
  2. That the provisions of the Resolution, so far as they are inconsistent with the Standing Orders, have effect notwithstanding anything contained in the Standing Orders.

The Senate requests the concurrence of the House of Representatives in the Senate’s modifications of the Resolution transmitted to the Senate by the House.

page 33

JUSTIN O’BYRNE

President

The Senate, Canberra, 5 June 1975

Motion (by Mr Uren) agreed to:

That the message be taken into consideration forthwith.

Mr UREN:
Minister for Urban and Regional Development · Reid · ALP

– I move:

  1. 1 ) That the modifications of the Senate be disagreed to.
  2. That a message be sent to the Senate requesting reconsideration by the Senate of the resolution in respect of the modifications disagreed to.

For too long now this Parliament has paid lipservice to the long standing goal of building a permanent Parliament House in Canberra. Once again we are on the way to being diverted from this main role. The time has come for immediate action. The Senate has transmitted a message to us today which contains an Opposition amendment seeking to add a further term of reference to the terms of reference of the proposed Joint Standing Committee on the New and Permanent Parliament House and thus add to the Committee’s task. The effect of this amendment will be to put the Committee under immediate pressure to resolve the very difficult question of accommodation in the present House. This can only mean that the special client committee will be diverted from its primary task, that is, to build the new Parliament House on Capital Hill as soon as possible. This is a goal for which we all are striving- a permanent Parliament House to serve parliamentary democracy in Australia. This is the important point we must now consider and resolve.

To reassure all honourable members on both sides of the Parliament that the unsatisfactory accommodation situation at present in the House is not being neglected, I point to the existence of the Joint House Committee whose role it is to examine questions such as that raised in the Senate amendment. It would be an appropriate task for this Committee to decide as soon as possible on which departments and people could be removed from the House to ensure that the members of the Parliament have adequate facilities to carry out their elected duties until the new Parliament House is built.

For these reasons the Government intends to oppose the amendment. It hopes that the Senate sees the wisdom of this and accepts the resolution of appointment as first proposed by the Prime Minister (Mr Whitlam). This will mean that we can get on with the job of building a new and permanent Parliament House without any further delay.

Mr DRURY:
Ryan

-I support the view that has just been put forward by the Minister for Urban and Regional Development (Mr Uren). I think those who have been in the Parliament for a number of years and have heard the matter of a new and permanent Parliament House debated a number of times would agree that the Minister is right when he says that there should be no further delay in proceeding and making a decision and taking the necessary steps to enable the new Parliament House to be got under way. I think one of the most important points to make is that in this matter there will be no major outlay of finance for several years, even after the decision is made to proceed. I admire the attitude that has been taken by the Minister in his attempt to get a decision made on this very important matter for Australia. I do not want to prolong the debate. I merely want to indicate where I stand myself. I believe the Minister is moving in the right direction, and I for one am completely with him.

Mr Keith Johnson:
BURKE, VICTORIA · ALP

-I rise in support of the attitude expressed by the Minister for Urban and Regional Development (Mr Uren). I very much support the remarks made by the honourable member for Ryan (Mr Drury), whose interest in this matter is well known to the House. He has expressed a consistent view over a number of years. The purpose of the proposed Joint Standing Committee on the New and Permanent Parliament House is to get on with the job of designing and building a new and permanent Parliament House for the Parliament of Australia. The present building is inadequate. Those who live in it know that very well. The opening comment of those who visit it always is: ‘What a very old and archaic building it is’.

The comfort of honourable members is not my prime concern. It seems to me that the amendments suggested by the Senate go more to the subject of the comfort of honourable member’s at the moment than it goes to what in my view is the principal subject, and that is a building far more contemporary with political life in Australia and certainly far more contemporary with a parliament in a developing country in the last quarter of the 20th century and one that we trust will serve well into the 21st century. The present building not only has limitations in accommodation for members but in my view it has grave limitations in the way in which it causes the parliamentary system to operate. The present building places a great deal of restraints and constrictions upon the very function it is supposed to assist the Parliament to carry out. It constrains and restricts the members in the carrying out of their tasks; it constrains and restricts the Parliament in its deliberation on a very wide variety of subjects.

For those reasons I support the attitude expressed that the amendments suggested by the Senate ought to be rejected and that the proposition that was carried by this House is a sound one because it goes to the very root of the problem. It goes to the problem of getting a permanent Parliament House constructed on the site that has been decided by this Parliament, and that is Capital Hill. The Minister for Urban and Regional Development has pointed out already that there is in existence a committee to care for this building; that is, the Joint House Committee. If. the proposition as agreed to by this House is changed in accordance with the modification suggested by the Senate the proposed committee will start to lose its effectiveness and it will divide its efforts between 2 jobs. Some honourable members may be of the view that the committee can function properly by exercising its mind in deliberating on 2 matters at the same time, but I am afraid that that is not my view and I am sure that it is not the view of the House. As I said, there is in existence a committee to care for the present Parliament House.

It is proposed that a committee be formed to look after, to investigate and to oversee the design and construction of a new parliament house. I hope that this House, without disagreement, will report back to the Senate that it does not agree with the suggested changes. I also hope that at a very early date the proposed committee will be set up so that it may get on with the task of devising a new parliament house that will be far more in line with what is required in Australia from the 1970s right through to the year 2000. It is my hopeful wish that the same sort of institution will be in existence in the year 2 100. 1 commend the motion to the House.

Mr LLOYD:
Murray

– I basically support the resolution but I more particularly support the resolution as amended by the Senate which not only is in favour of a joint committee proceeding with plans for the new parliament house but also includes a reference to investigate and make recommendations in respect of the provision of better and reasonable facilities for members in the present building here and now. I do not believe that the Senate’s amendment is contradictory. I believe that the acceptance of the suggested modification is necessary for 2 reasons. One is that no matter how quickly any committee proceeds there will be quite a time lag before a new parliament house is constructed. With the best will in the world I think it would be 10 to 1 5 years before members were able to move into the new parliament house. There is a time lag between the design specifications, the construction and the movement of members and staff to the new building. I would think that in some ways 10 to 15 years could be a conservative estimate.

What is to happen to the ordinary members of Parliament who occupy this building? The facilities available to them will not improve in that time. Their work load is increasing. The membership of the House of Representatives is restricted to 127 at the present time. On many occasions while I have been a member of this House- I am sure that ordinary members who have, been here for much longer than I also have seen this- I have seen the rights of and the facilities available to the ordinary members come last in the list of priorities in what is actually provided in this building for those who occupy it. When one looks at other parliament houses and what is provided for members one can see the perhaps lavish provisions in the United States, but I will refer to Canada which is probably the most comparable country to Australia. In Canada a federal member represents about half the number of people that a federal member in this country represents. Every ordinary member of the Federal Parliament in Canada has a separate double office with a staff of two to assist him in his work, and he considers that to be by no means a generous provision. Yet ordinary members here, with twice the number of electors of Federal members in Canada generally, have no support facilities at all in this building. One sees room after room in this place occupied by two and even 3 members.

I believe that the previous Government was neglectful in this area, just as it appears that the leadership of the present Government is being neglectful of the rights and privileges of the ordinary members of Parliament in this place. Putting to one side the Ministry and the facilities provided for it, if there is a restriction on space in this building then a reasonable requirement- as suggested in the Senate’s amendment- is that ordinary members of Parliament should have first priority and that every other requirement for space in this building for the various officers and departments should come second. If the Parliament is to be the place for members of Parliament to carry out their duties rather than the place . for all the additional facilities and requirements that appear to have been tacked on over the years, then the rights of ordinary members of Parliament on both sides should come first. It is because of this time lag in processing details for and creating a new and permanent parliament house, even with the best will in the world, that I think it is important that this amendment of the Senate be agreed to so that something can be done.

In reply to a question during question time today the Prime Minister (Mr Whitlam) laid stress on equality. I hope he will have a look at equality in this place and see the differences between the facilities available to himself and the Ministry and those available to ordinary members. I would say the same thing if my Party were in government because this was true when it was in office. When one talks about travelling economy class and equality, does it mean that as members of Parliament we are all to travel VIP? Does it mean that the Prime Minister also will travel economy class? One could also talk about travelling in Mercedes-Benz cars. I believe that the Senate ‘s amendment should be supported.

Mr BRYANT:
Minister for the Capital Territory · Wills · ALP

– I am a little surprised that the Senate, after its long battle to get some action on this matter, should delay it by this method. In a long history of parliamentary endeavour there is nothing more designed to delay things than seeking to amend running affairs. The Senate itself has played a fairly effective part in having a decision made on the location of the new permanent parliament house. I think it is fairly obvious from all our experience that if you want something done you hand it to someone whose function it is to determine that question and that question alone. This resolution from the Senate and the support from some members of the Opposition will only help to confuse matters because it is a different question altogether.

The question of accommodation in this building at the present moment is under review by the Joint House Committee, as I understand it. I also understand that submissions have been made already and are in the process of being made ready for presentation to the appropriate authorities. In fact, expenditure on this building is a matter that involves serious architectural constraints. It is a very difficult question and one which can be resolved only by close study by the appropriate authorities and the experts. There is not all that much that we can do about it. Consideration of a new and permanent parliament house and the function of the committee that we want established as soon as possible will call for the greatest possible intellectual effort and continual study, work and consideration. It will not be a sinecure. In the first instance we are going to erect a building which will be totally different from any other building in this country- not because it will be contemporary but because for the first time someone will be setting out to construct a building for a modern parliament and for that alone.

I was a member of the original committee which examined the requirements of a new and permanent parliament house and brought down its report some 7 or 8 years ago on the functional relationship of the building and the accommodation that would be required. We travelled around the world and we investigated a number of other parliament houses. The thing that struck me- I presume it made the same impact upon the honourable member for Ryan (Mr Drury) who was a member of that committee- was that although some very fine buildings had been designed and built they did not cater for the functions of parliament. The Parliament House building in Kuala Lumpur, for instance, looks well on a postcard. The building in Delhi represents another architect’s vision of what a parliament house ought to be, but it has been designed without much consultation with parliamentarians. In Rome and Bonn the staff are working under constraints imposed by old buildings. The British Houses of Parliament are a magnificent building but totally inadequate, as is the building in Ottawa which was mentioned by my friend the- honourable member for Murray (Mr Lloyd).

The function of parliament as an institution is totally different from its function in the past. Great demands are placed upon the people who work in it. The general public are increasingly attracted to visit it. The people in it have an increasing workload and there is an increasing work force. In a way the parliamentary institution now has to include executive functions, legislative functions and the general accommodation of the people who work in it. The Committee that has been set up has a very difficult and involved task before it. I can only hope that it will get on with the job and, in the not too distant future, produce designs which will be a substantial advance on anything that has been produced so far anywhere else. I fondly hope that it will create a new style of architecture for Australia.

This matter has been fraught with unusual and unnecessary delays. The Committee produced its report about 7 years ago. This House decided by a small majority that the new parliament house ought to be on Camp Hill. The Senate decided by a large majority that it ought to be on Capital

Hill. I think that the majority in favour of the Capital Hill site was about thirty, there being a total of 185 members at that time. The then Prime Minister, the right honourable member for Higgins (Mr Gorton), perhaps acting in concert with his Cabinet but perhaps not, just announced in the House that as the Parliament could not make up its mind about the matter the Government itself would decide on it. He said: ‘We will put it on Camp Hill’. One would have thought that even a Liberal Prime Minister would have been able to add up two simple numbers.

Mr DONALD CAMERON:
GRIFFITH, QUEENSLAND · LP

– That move was not one of his finest moments.

Mr BRYANT:

– That is right. One would have thought that there were only two ballot boxes in that election- one in the Senate and one in the House of Representatives- and that even a Liberal Prime Minister, dedicated to electoral inequality as all Liberals are- all except my friend from Griffith- would have been able to add them together and say that the majority was in favour of Capital Hill. But he did not do that. The result is that for 7 years there has been a complete delay, and the person principally responsible must be the right honourable member for Higgins. If it had not been for his intervention in that way the building would now be half completed. So I think that it would be an important contribution to alacrity in this matter if the Opposition did not vote against the motion and if we relayed to the Senate the unanimous view of this House that the Committee should get on with the job as it was defined by this House in the first place and that the function, the subject of the Senate’s resolution, be returned to the respective House committees to establish the accommodation needs. As I understand it from information I have received, submissions have been largely completed on the matter. This is a totally different function from the design of the new and permanent parliament house. Therefore I suggest that this House carry the motion without division so that the Senate will be encouraged to make its decision without delay.

Mr DONALD CAMERON:
GRIFFITH, QUEENSLAND · LP

-Mr Chairman of Committees, may I take this opportunity to congratulate you on your appointment?

Mr DEPUTY SPEAKER (Dr Jenkins:

-We are in the House at the moment.

Mr DONALD CAMERON:
GRIFFITH, QUEENSLAND · LP

-Thank you, but I still take the opportunity. I will be very brief. Shortly after I arrived in this Parliament in 1 966 discussions on the siting of the new parliament house commenced. Here we are in the mid-1970s still discussing it. I feel that I share the view of the vast majority of Australians who have heard the various debates on this subject, that the nation is well convinced of the need for a new parliament house but is disgusted at the lack of ability of the Parliament itself to come to grips with making such a simple decision. I hope that today’s debate will be the final one on this subject and that in the very near future we will get on with the job.

Mr DALY:
Minister for Services and Property · Grayndler · ALP

– At the outset I would like to congratulate the honourable member for Griffith (Mr Donald Cameron) on one of the few really good speeches I have heard him make in the Parliament. I support the view put forward by the Minister for Urban and Regional Development (Mr Uren) that we should reject the Senate’s amendment. The honourable member for Griffith and the honourable member for Ryan (Mr Drury)- and all honourable members for that matter-must realise that no one would imagine that a parliament could be properly conducted with the sort of accommodation and facilities that are available here for members and others. It is true that we suffer greatly in comparison particularly with Canada and the United States of America. The British House of Commons does not offer much in the way of facilities for private members. As the honourable member for Griffith said, for a long time- almost since the time I entered the Parliament- there has been a demand for a new parliament house. The facilities are not available for Ministers and private members adequately to provide for the staff that is necessary. The real purpose behind the resolution, which was moved and carried by the Parliament, was to get the proceedings under way and to commence the erection of a new parliament house. I thought that we had gone a long way when this matter was decided by a vote on nonparty lines; undoubtedly this delaying tactic will upset our hopes and aspirations.

The amendment refers to matters relating to facilities in this House at the present time. The fact is that at the present time a committee is investigating what can be done. But not much can be done in this building unless it is extended another storey or sideways or unless the walls are turned into concertina walls. All the inquiries in the world would reveal that it is necessary to erect another building, either by adding to this one or by building a new parliament house. Why the Senate should consider just investigating the possibility of improving the facilities here is quite beyond me. I suggest that that is completely out of order with what was meant by the original motion. Where will we get if we just keep on inquiring about what we can do in this Parliament House? Why not be more constructive and say: ‘When can we commence to lay the foundation stone of a parliament house that will do justice not only to the people of this country but also to those who are honoured to represent them here?’ Those people who have seen the Canadian building appreciate what has been done there. It is a magnificent Parliament House with good facilities for members. The same thing applies in the United States Congress.

We have been asked to go into certain matters in the resolution. The honourable member for Murray mentioned the neglect of accommodation for honourable members. He criticised governments in which his own Party participated but he was also somewhat critical of the present Government and said that it also had gone to sleep in regard to facilities for honourable members. I do not want to push the matter any further but all honourable members know that in the last few yea.rs, right throughout the length and breadth of the country, the facilities for honourable members in their offices in their electorates and in other places have been substantially increased, and the secretarial legislative research assistance mentioned has been provided by the Labor Government. For 23-odd years Liberal governments did not bother to do anything about that. The criticism by the honourable member for Murray does him no credit. It is easy to see that he did not suffer as other honourable members did from the complete lack of facilities not only in this Parliament but also in the electorates.

This Government has not gone to sleep on the matter. It has put forward this motion regarding a new parliament house in order to improve and continue the progress it has made in providing adequate facilities for members in this Parliament. Consequently these delaying tactics do little credit to the Senate and will not help those who seek to improve conditions for honourable members here. Every Minister and every private member wants additional accommodation. Those who work within the Parliament, such as the clerks and others, need additional facilities. The staff and all those associated with Parliament who work for the people of this country certainly look forward to a better parliament house, better facilities and surroundings. I do not wish to say more than that I hope the Parliament will reject this suggestion and that the Senate, in good sense, will accept the original motion which was sent forward and let a new Parliament

House get under way. From what I have seen of the Senate, it could do with some improvements in its own facilities over there, as far as honourable senators are concerned. This offers the Senate that opportunity.

I suggest again to the honourable member for Murray that while it does him little credit to criticise honourable members on this side of the House for what has been done, by all means he should aim his darts at those who sat on this side for a long time and those in ministries who enjoyed to the full what a Minister could get in regard to facilities. Honourable members then on this side, as well as those of us who were then in Opposition, were given nothing at all in regard to what is needed by private members. I well remember that a member of the Opposition when he was defeated said: ‘Do not blame us if you never get anything over there. Our Ministers did not give us anything either.’ So it was all a one-way traffic. Under the previous Government 27 men had all the facilities that mattered and private members got nothing inside or outside the Parliament. This practical attempt by the Government to see that we get under way with the new Parliament House deserves to be supported. Motions aimed at delaying the commencement of the important construction of a new Parliament House deserve to be opposed. We should send this resolution back to the Senate. We should advise the Senate that we want to get under way and that we hope it wants the same thing and supports the original motion which was sent there.

Question resolved in the affirmative.

page 38

CONSTITUTIONAL CONVENTION

Mr SPEAKER:

– I have received from the Senate the following message:

Mr Speaker,

The Senate transmits to the House of Representatives the following Resolution which was agreed to by the Senate this day:

That the Senate affirms the decision taken by resolution of the Senate on 31 May 1973 that the Australian Parliament join with the Parliaments of the States in the Constitutional Convention to be convened to review the Australian Constitution in September of that year, and at such subsequent times as the Convention from time to time determined, and agrees:

  1. 1 ) That, for the purposes of the Convention-

    1. a Delegation from the Australian Parliament consisting of sixteen members of the Parliament take part in the deliberations of the Convention, of whom six shall be members of the Senate and ten shall be members of the House of Representatives;
    2. the six members of the Senate comprise three members of the Australian Labor Party, two members of the Liberal Party of Australia, and one member of the National Country Party of Australia:
  2. That-

    1. three Senators, being members of the Australian Labor Party, nominated by the Leader of the Government in the Senate;
    2. two Senators, being members of the Liberal Party of Australia, nominated by the Leader of the Opposition in the Senate; and
    3. one Senator, being a member of the National Country Party of Australia nominated by the Leader of that Party in the Senate, be members of the Delegation:
  3. That the Prime Minister be the Leader of the Delegation, and the Leader of the Opposition be the Deputy Leader:
  4. That a member of the Delegation cease to be such a member if-

    1. he ceases to be a member of the Australian Parliament;
    2. the House of the Parliament of which he is a member terminates his appointment; or
    3. he resigns as a member of the delegation by writing addressed to the President of the Senate or the Speaker of the House of Representatives, as the case requires:
  5. That where, because of illness or other cause, a member of the Delegation is not available to attend a meeting, or part of a meeting, of the Convention, the Leader or senior available member of the Party in the House from which the member was drawn may nominate an alternate member (being a member of the House of which the first-mentioned member is a member) and the member so nominated shall be a member of the Delegation for that meeting, or that part of that meeting:
  6. That, in the event of a member of the Delegation ceasing to be such a member, the Leader of the Party in the House from which the member was drawn may nominate another member (being a member of the House of which the first-mentioned member is or was a member) to replace the first-mentioned member:
  7. That the Leader of the Delegation from time to time make a report for presentation to each House of the Parliament on matters arising out of the Convention, and that the Deputy Leader of the Delegation may make an accompanying report.

JUSTIN O ‘BYRNE President

The Senate

Canberra, 12 June 1973

page 38

ADMINISTRATIVE APPEALS TRIBUNAL BILL 1975

Bill returned from the Senate with amendments.

Motion (by Mr Enderby) agreed to:

That the amendments be taken into consideration in the Committee of the Whole forthwith.

In Committee

Consideration of Senate ‘s amendments.

Clause 3 (Interpretation).

Senate ‘s amendment No. 1 -

At end of clause add the following sub-clause: ‘(3) A reference in this Act to a decision includes a reference to-

making, suspending, revoking or refusing to make an order or determination;

giving, suspending, revoking or refusing to give a certificate, direction, approval, consent or permission;

issuing, suspending, revoking or refusing to issue a licence, authority or other instrument;

imposing a condition or restriction;

making a declaration, demand or requirement;

retaining, or refusing to deliver up, an article; or

doing or refusing to do any other act or thing.’.

Clause 8.

Senate’s amendment No. 2-

In sub-clause (3), leave out ‘the Governor-General determines ‘, insert ‘ are prescribed ‘.

Senate’s amendment No. 3-

In sub-clause (4), leave out the sub-clause.

Clause 9 (Status of presidential members).

Senate’s amendment No. 4- leave out the clause.

Clause 12.

A full-time member shall not, except with the approval of the Minister, engage in paid employment outside the duties of his office.

Senate’s amendment No. 5-

Leave out ‘ , except with the approval of the Minister, ‘.

Clause 19 (Application of Judges’ Pensions Act).

Senate’s amendment No. 6-

Before sub-clause ( 1 ), insert the following new sub-clause: ‘(1a) Subject to this section, the Judges’ Pensions Act 1968-1974 has effect as if a presidential member had the status of a Judge of the Australian Industrial Court. ‘.

Clause 23.

Senate’s amendment No. 7-

In sub-clause (2), line 25, after ‘sub-section 26(6)’, insert ‘ or a provision of the Schedule ‘.

Clause 26.

Senate’s amendment No. 8-

In sub-clause (2), leave out the sub-clause, insert the following sub-clause: ‘(2) An enactment (being an Act, on Ordinance of a Territory, or regulations made under an Act) may make provision under this section that is inconsistent with a provision of the Schedule and, where such an enactment so makes provision, any provision of the Schedule that is inconsistent with that provision of the enactment is of no effect. ‘.

Senate’s amendment No. 9-

In sub-clause (3), lines 40 and 41, leave out ‘or (2), that enactment, or another enactment having effect under that enactment ‘, insert ‘ , that enactment ‘.

Senate’s amendment No. 10-

In sub-clause (6), paragraph (a), lines 12 and 13, leave out ‘, or another enactment having effect under that enactment,’.

Senate’s amendment No. 1 1-

In sub-clause (6), paragraph (b), lines 20 and 21, leave out ‘, or another enactment having effect under that enactment,’.

Senate’s amendment No. 12-

After clause 26, insert the following new clause: ‘26a. (1) The provisions of the Schedule have effect according to their tenor notwithstanding anything contained in any other provision of this Act (other than sub-section 26(2)) or in any provision of any other enactment in force at the commencement of this Act. ‘(2) A reference in sub-section 26(4) to an enactment includes a reference to the Schedule. ‘(3) The regulations may amend the Schedule-

by inserting in the Schedule-

provisions authorizing the making of applications to the Tribunal for review of decisions made in the exercise of powers conferred by an enactment; and

where a provision authorizing the making of such an application is contained in the Schedule- provisions, having effect in relation to the application, of the kinds mentioned in paragraphs 26(6) (a) and (b);

b ) by inserting in the Schedule a provision modifying or excluding the operation of any provision of an enactment in force at the commencement of this Act that provides for the review otherwise than by the Tribunal of decisions in respect of which applications may be made to the Tribunal for review; and

by omitting any provision of the Schedule that has ceased to have effect by virtue of the operation of any other enactment. ‘(4) An amendment of the Schedule made by the regulations applies only in respect of decisions made after the amendment takes effect. ‘.

Clause 27.

Senate’s amendment No. 13-

In sub-clause (1), leave out ‘an’ (first occurring), insert ‘ this Act or any other ‘.

Clause 28.

Senate’s amendment No. 14-

In sub-clause (2), leave out ‘a Minister’, insert ‘the Attorney-General ‘.

Senate’s amendment No. 15-

In sub-clause (2), paragraph (c), leave out the paragraph, insert the following paragraph:

for any other reason specified in the certificate that could form the basis for a claim by the Crown in right of Australia in a judical proceeding that the contents of the statement should not be disclosed, ‘.

Clause 36.

Senate’s amendment No. 16-

In sub-clause (1), leave out ‘a Minister’, insert ‘the Attorney-General’.

Senate’s amendment No. 17-

In sub-clause ( 1 ), paragraph (c), leave out the paragraph, insert the following paragraph: ‘(c) for any other reason specified in the certificate that could form the basis for a claim by the Crown in right of Australia in a judicial proceeding that the information or the contents of the documents should not be disclosed,’.

Senate’s amendment No. 18-

In sub-clause (S), leave out ‘, but does not affect any rules of law relating to privilege in relation to the disclosure of information or of the contents of documents in such proceedings ‘.

Clause 40.

Senate’s amendment No. 19-

After sub-clause (3), insert the following new sub-clause: ‘(3a) A person summoned to appear before the Tribunal may request that he be represented by counsel or a solicitor and upon such request being made the tribunal may allow such person to be represented. ‘.

Clause 43.

Senate’s amendment No. 20-

In sub-clause (6), leave out ‘Superior Court of Australia’, insert ‘Supreme Court of a State or Territory’.

Clause 44.

Senate’s amendment No. 21-

In sub-clause (1) leave out ‘Superior Court of Australia’, insert ‘Supreme Court of a State or Territory’.

Senate’s amendment No. 22-

In sub-clause (2), leave out ‘Superior Court of Australia’, insert ‘Supreme Court of a State or Territory ‘.

Senate’s amendment No. 23-

In sub-clause (3), leave out ‘Superior Court of Australia’, insert ‘Supreme Court of a State or Territory’.

Senate’s amendment No. 24-

In sub-clause (4), leave out the sub-clause.

Senate’s amendment No. 25-

In sub-clause (5), leave out ‘Superior Court of Australia’, insert ‘Supreme Court of a State or Territory’.

Senate’s amendment No. 26-

In sub-clause (6), leave out ‘Superior Court of Australia ‘, insert ‘Supreme Court of a State or Territory’.

Clause 45.

Senate’s amendment No. 27-

Leave out ‘Superior Court of Australia’ (wherever occurring), insert ‘Supreme Court of a State or Territory’.

Clause 46.

Senate ‘s amendment No. 28-

Leave out ‘Superior Court of Australia’ (wherever occurring), insert ‘Supreme Court of a State or Territory’.

Clause 47 (Temporary exercise of jurisdiction by Australian Industrial Court).

Senate’s amendment No. 29-

Leave out the clause.

Proposed new Part IV A.

Senate’s amendment No. 30-

After Part IV, insert the following new Part: ‘PART IVa-ADMINISTRATIVE REVIEW COUNCIL ‘47a. (1) In this Part, unless the contrary intention appears- ‘appointed member’ means a member referred to in paragraph 47c (l)(d); ‘Council’ means the Administrative Review Council; ‘ member’ means a member of the Council. ‘(2) A reference in this Part to an administrative decision or an administrative discretion includes a reference to an administrative decision made, or administrative discretion exercised, otherwise than under an enactment. 47b. There is hereby established a Council by the name of the Administrative Review Council. ‘47c. ( 1 ) The Council shall consist of-

the President;

the Australian Ombudsman holding office under the Ombudsman Act 197S;

the Chairman of the Law Reform Commission established by the Law Reform Commission Act 1973; and

not less than 3 or more than 7 other members. ‘(2) The members referred to in paragraph ( 1) (d) shall be appointed by the Governor-General and shall be appointed as part-time members. ‘(3) The performance of the functions or the exercise of the powers of the Council is not affected by a vacancy in the office of a member referred to in paragraph (1) (a), (b) or (c) or by reason of the number of appointed members falling below 3 for not more than 3 months. ‘47D. A person shall not be appointed as a member referred to in paragraph 47C(1) (d) unless he has had extensive experience in public administration or has an extensive knowledge of administrative law. ‘47e. ( 1 ) The functions of the Council are-

to ascertain, and keep under review, the classes of administrative decisions that are not the subject of review by a court, tribunal or other body;

to make recommendations to the Minister as to whether any of those classes of decision should be the subject of review by a court, tribunal or other body and, if so, as to the appropriate court, tribunal or other body to make that review;

to inquire into the adequacy of the law and practice relating to the review by courts of administrative decisions and to make recommendations to the Minister as to any improvements that might be made in that law or practice;

to inquire into the adequacy of the procedures in use by tribunals or other bodies engaged in the review of administrative decisions and to make recommendations to the Minister as to any improvements that might be made in those procedures;

to make recommendations to the Minister as to the manner in which tribunals engaged in the review of administrative decisions should be constituted; (0 to make recommendations to the Minister as to the desirability of administrative decisions that are the subject of review by tribunals other than the Administrative Appeals Tribunal being made the subject of review by the Administrative Appeals Tribunal; and

to make recommendations to the Minister as to ways and means of improving the procedures for the exercise of administrative discretions for the purpose of ensuring that those discretions are exercised in a just and equitable manner. ‘(2) The Council may do all things necessary or convenient to be done for or in connexion with the performance of its functions. ‘47f. An appointed member shall be appointed for such period, not exceeding 3 years, as the Governor-General specifies in the instrument of his appointment, but is eligible for re-appointment. ‘47g. (1) An appointed member shall be paid such remuneration as is determined by the Remuneration Tribunal but, if no determination of that remuneration by that Tribunal is in operation, he shall be paid such remuneration as is prescribed. ‘(2) An appointed member shall be paid such allowances as are prescribed. ‘(3) This section has effect subject to the Remuneration Tribunals Act 1973-1974.

*47h. An appointed member may resign his office by writing signed by him and delivered to the Governor-General. ‘47j. (1) The Governor-General may remove an appointed member from office for misbehaviour or incapacity. ‘(2) If an appointed member is absent, except by leave of the Minister, from 3 consecutive meetings of the Council, the Governor-General may remove him from office. ‘47k. (1) The Council shall hold such meetings as are necessary for the performance of its functions. ‘(2) The President may at any time convene a meeting of the Council. ‘(3) The President shall, on receipt of a request in writing signed by 3 members, convene a meeting of the Council. ‘(4) At a meeting of the Council, 4 members constitute a quorum. ‘(5) The President shall preside at all meetings of the Council at which he is present. ‘(6) If the President is not present at a meeting of the Council, the members present shall elect one of their number to preside at that meeting and the person so elected shall preside accordingly. ‘(7) Questions arising at a meeting of the Council shall be determined by a majority of the votes of the members present and voting. ‘ ( 8 ) The member presiding at a meeting of the Council has a deliberative vote and, in the event of an equality of votes, also has a casting vote. ‘(9) The Council may regulate the conduct of proceedings at its meetings as it thinks fit and shall keep minutes of those proceedings. ‘(10) A person acting in the office of the Australian Ombudsman may attend a meeting of the Council and, in relation to a meeting of the Council that he attends in pursuance with this sub-section, shall be deemed to be the Australian Ombudsman. ‘47l. The staff of the Council shall be persons appointed or employed under the Public Service Act 1 922-1 975. ‘47m. ( 1 ) The Council shall, as soon as practicable after 30 June in each year, prepare and furnish to the Minister a report of the operations of the Council during that year. ‘(2) The Minister shall cause the report of the Council to be laid before each House of the Parliament within 1 5 sitting days of that House after the receipt of the report by the Minister. ‘(3) The first report by the Council shall relate to the period commencing on the date of commencement of this Act and ending on 30 June 1976.’.

Clause 58.

Senate ‘s amendment No. 3 1 -

In sub-clause (2), leave out the sub-clause, insert the following sub-clause: ‘(2) Where an application is made by a person under subsection ( 1 ), the Attorney-General may, if he is satisfied that it would involve hardship to that person to refuse the application and that, in all the circumstances, it is reasonable that the application should be granted, authorize the provision by Australia to that person, either unconditionally or subject to such conditions as the Attorney-General determines, of such legal or financial assistance in relation to the proceeding as the Attorney-General determines. ‘.

Proposed Schedule.

Senate ‘s amendment No. 32-

Add the following Schedule: ‘SCHEDULE Section 26a

‘PART I- INTERPRETATION

‘1. (1) This Schedule applies only in respect of decisions made after the commencement of this Act. ‘(2 ) Expressions used in a succeeding Part of this Schedule have, unless the contrary intention appears, the same respective meanings as those expressions have in the Act specified in the heading to that Part. ‘(3) A reference in this Schedule to a decision by the holder of an office includes a reference to a decision by a person for the time being acting in or performing any of the duties of the office. ‘(4) This Schedule applies to a decision made by a person to whom the power to make the decision has been delegated in like manner as it would have applied if the decision had been made by the person who delegated that power.

‘PART II-AIR NAVIGATION ACT

‘2. (1) Applications may be made to the Tribunal for review of decisions by the Director-General of Civil Aviation

refusing to grant a licence or certificate referred to in regulation 254 of the Air Navigation Regulations; or

varying or cancelling such a licence or certificate or suspending such a licence or certificate otherwise than under regulation 257 of those Regulations. ‘(2) A person is not entitled to-

have a matter to which a decision relates submitted for review to a board of review; or

appeal against a decision, in accordance with regulation 259 of the Air Navigation Regulations if an application may be made to the Tribunal in respect of the decision by virtue of sub-clause ( 1 ).

‘PART III-AUSTRALIAN CAPITAL TERRITORY TAXATION ADMINISTRATION ACT

‘3. (1) An application may be made to the Tribunal for review of the revocation by the Commissioner of Taxation under section 20 of the Australian Capital Territory Taxation Administration Act 1969-1973 of an authority granted to a banker under Division 2 of Part III of that Act. ‘(2) A person is not entitled to appeal under section 2 1 of the Australian Capital Territory Taxation Administration Act 1969-1973 against the revocation of an authority in respect of which an application may be made to the Tribunal by virtue of sub-clause ( 1 ). ‘(3) For the purpose of reviewing a revocation of an authority referred to in sub-clause ( 1 ), the Tribunal shall be constituted by a presidential member alone.

‘PART IV- AUSTRALIAN FILM COMMISSION ACT

‘4. An application may be made to the Tribunal for review of a requirement made under section 10 of the Australian Film Commission Act 1975.

‘PART V- BROADCASTING AND TELEVISION ACT

‘5. (1) Applications may be made to the Tribunal for review of decisions of the Minister made under section 86 of the Broadcasting and Television Act 1942-1974 or decisions of the Australian Broadcasting Control Board made under section 1 1 9 of that Act. ‘(2) A person is not entitled to appeal under section 87a of the Broadcasting and Television Act 1 942- 1 974 against a decision in respect of which an application may be made to the Tribunal by virtue of sub-clause ( 1 ).

‘PART VI-CUSTOMS ACT

‘6. (1) In this clause, ‘Customs Act’ means the Customs Act 1901-1974. ‘(2) Applications may be made to the Tribunal for review of-

a demand made by a Collector under section 35a of the Customs Act;

a decision by the Minister under Division 1 of Part V of the Customs Act;

a decision by the Minister under section 1 19 of the Customs Act not to grant a certificate of clearance;

a refusal by a Collector under section 126 of the Customs Act;

quota orders, and variations of quota orders, made by the Minister under sections I 32b and 132c of the Customs Act;

a decision by the Minister under section 160 of the Customs Act;

a direction by the Minister under section 164b of the Customs Act;

a decision by a Collector under section 183a of the Customs Act; and

a decision by the Minister under section 183b of the Customs Act. ‘(3) Where a dispute referred to in sub-section 167 ( 1 ) of the Customs Act has arisen and the owner of the goods has, in accordance with that sub-section, paid under protest the sum demanded by the Collector, an application may be made to the Tribunal for review of the demand made by the Collector for that sum. ‘(4) For the purposes of the reviews referred to in paragraphs (2)(b), (h) and (j), the Tribunal shall be constituted by a presidential member alone. ‘(5) Sub-section 119(3) of the Customs Act does not apply where a Certificate of Clearance is granted to the owner of the ship or aircraft referred to in that sub-section as a result of a review by the Tribunal. ‘(6) A person is not entitled to apply for a review under section 1 32e of the Customs Act of a quota order, or a variation of a quota order, if an application may be made to the Tribunal under paragraph (2)(e) in respect of the quota order or the variation, as the case may be. ‘(7) An application may not be made to the Tribunal under sub-clause (3) unless the application is made within the time specified in paragraph 167 (4) (a) or (b), whichever is appropriate, of the Customs Act. ‘(8) Where the owner of goods has made an application to the Tribunal under sub-clause (3), he is not entitled to bring an action under sub-section 1 67 (2 ) of the Customs Act. ‘(9) Where, on an application made under sub-clause (3), the Tribunal has made a decision reviewing a demand made by the Collector, the power duty payable in respect of the goods concerned shall be deemed to be-

the sum determined to be the proper duty by, or ascertained to be the proper duty in accordance with-

the decision of the Tribunal; or

an order of a court on appeal from that decision; or

b) the sum paid under protest, whichever is the less. ‘( 10) A person is not entitled to appeal under sub-section 183c ( 1 ) of the Customs Act against a suspension, further suspension or revocation of a licence in respect of which an application may be made to the Tribunal under paragraph 2(j).

‘PART VII-CUSTOMS TARIFF

‘7. Applications may be made to the Tribunal for review of-

a direction given by the Minister under section 7 of the Customs Tariff 1 966- 1 974; and

determinations made by the Minister under sections 8 and 3 1 of the Customs Tariff 1 966- 1 974.

‘PART VIII-DISTILLATION ACT

‘8. Applications may be made to the Tribunal for review of-

a decision by the Collector under section 20 of the Distillation Act 1901-1973; and

b) a cancellation of a licence by the Minister under section 24 of the Distillation Act 1 90 1- 1 973.

‘PART IX-EXCISE ACT

‘9.(1) In this clause, ‘Excise Act’ means the Excise Act 1901-1974. ‘(2) Applications may be made to the Tribunal for review of-

a decision by a Collector under section 5a of the Excise Act;

a decision by the Collector under section 40 of the Excise Act;

a cancellation by the Minister under section 43 of the Excise Act;

quota orders, and variations of quota orders, made by the Minister under sections 59a and 59b of the Excise Act; and

a demand made by a Collector under section 60 of the Excise Act. ‘(3) Where a dispute referred to in section 154 of the Excise Act has arisen and the owner of the goods has, in accordance with that section, deposited the amount of duty demanded by the Collector, an application may be made to the Tribunal for review of the demand made by the Collector for that amount. ‘(4) A person is not entitled to apply for a review under section 59p of the Excise Act of a quota order, or a variation of a quota order, if an application may be made to the Tribunal under paragraph (2) (d) in respect of the quota order or the variation, as the case may be. ‘(5) An application may not be made to the Tribunal under sub-clause (3) unless the application is made within a period of 6 months after the making of the deposit referred to in that sub-clause. ‘(6) Where the owner of goods has made an application to the Tribunal under sub-clause (3)-

the consequences referred to in paragraph 1 54 (2 ) of the Excise Act shall not ensue and the owner of the goods is not entitled to institute against the Collector an action referred to in that paragraph; and

the proper duty payable in respect of the goods shall be deemed to be-

the amount determined to be the proper duty by, or ascertained to be the proper duty in accordance with-

the decision of the Tribunal; or

an order of a court on appeal from that decision; or

the amount of the deposit, whichever is the less, and where the amount of the deposit exceeds the amount referred to in subparagraph (a), the excess shall be refunded by the Collector to the owner with interest at the rate of 5 per centum per annum.

PART X-INCOME TAX ASSESSMENT ACT

‘10. ( 1 ) An application may be made to the Tribunal for review of the cancellation by a Tax Agents’ Board under section 251k. of the Income Tax Assessment Act 1936-1975 of the registration of a tax agent. ‘(2) A person is not entitled to appeal under sub-section 251k (5) of the Income Tax Assessment An 1936-1975 against a cancellation of the registration of a tax agent in respect of which an application may be made to the Tribunal by virtue of sub-clause ( 1 ). ‘(3) For the purpose of reviewing the cancellation of the registration of a tax agent, the Tribunal shall be constituted by a presidential member alone.

PART XI- MARRIAGE ACT

‘11. (1) An An application may be made to the Tribunal for review of a decision of a Registrar of Ministers of Religion refusing to register a person who has applied for registration under Division 1 of Pan IV of the Marriage Act 1 96 1 - 1 973 or removing the name of a person from a register in pursuance of section 33 of that Act. ‘(2) A person is not entitled to request a review under section 34 of the Marriage Act 1961-1973 of a decision in respect of which an application for review may be made to the Tribunal by virtue of sub-clause ( 1 ). ‘(3) For the purpose of reviewing a decision referred to in sub-clause ( 1 ), the Tribunal shall be constituted by a presidential member alone.

PART XII-MIGRATION ACT

‘12. (1) Applications may be made to the Tribunal for review of decisions of the Minister made under section 12, 13 or 48 of the Migration Act 1958-1973 other than a decision made on a matter remitted by the Tribunal for reconsideration in accordance with sub-clause (3). ‘(2) A person is not entitled to make an application under sub-clause ( 1 ) in relation to a decision made under section 12 or 13 of the Migration Act 1958-1973 unless-

the person is an Australian citizen; or

the continued presence of the person in Australia is not subject to any limitation as to time imposed by law. ‘(3) After reviewing a decision referred to in sub-clause ( 1 ), the Tribunal shall either affirm the decision or remit the matter for reconsideration in accordance with any recommendations of the Tribunal. ‘(4) For the purpose of reviewing a decision referred to in sub-clause ( 1 ), the Tribunal shall be constituted by a presidential member alone.

PART XIII-NATIONAL HEALTH ACT

‘13. (1) An application may be made to the Tribunal for review of a decision of the Director-General of Health under section 90 of the National Health Act 1953-1975 rejecting an application of a pharmaceutical chemist under that section. ‘(2) A person is not entitled to appeal under sub-section 90(5) of the National Health Act 1953-1975 against a decision in respect of which an application may be made to the Tribunal by virtue of sub-clause ( 1 ). ‘(3) An application may be made to the Tribunal for review of a decision of the Minister under section 95 of the National Health Act 1953-1975 suspending, further suspending or revoking the approval or authority of a medical practitioner or a pharmaceutical chemist. ‘(4) A person is not entitled to appeal under section 97 of the National Health Act 1953-1975 against a decision in respect of which an application may be made to the Tribunal by virtue of sub-clause (3).

PART XIV-PATENTS ACT

‘14. (1) Applications may be made to the Tribunal for review of a refusal by the Commissioner of Patents to register a person as a patent attorney und*r section 133 of the Patents Act 1957-1973. ‘(2) Applications may be made to the Tribunal for review of an order by the Commissioner of Patents under regulation 27 of the Patent Attorneys Regulations directing that the name of a patent attorney be removed from the Register of Patent Attorneys. ‘(3) A person is not entitled to appeal under regulation 29 of the Patent Attorneys Regulations against an order in respect of which an application may be made to the Tribunal by virtue of sub-clause (2). ‘(4) For the purpose of reviewing an order referred to in sub-clause (2), the Tribunal shall be constituted by a presidential member alone.

PART XV-SPIRITS ACT

‘15. An application may be made to the Tribunal for a review of a decision of a Collector of Customs under section 20 of the Spirits Act 1906-1973.’.

The CHAIRMAN (Dr Jenkins:
SCULLIN, VICTORIA

-Is it the wish of the Committee to adopt the procedure suggested by the Attorney-General? There being no objection I will allow that course to be followed.

Mr ENDERBY:
CanberraAttorneyGeneral · ALP

– I move:

As the Committee will recall, these amendments deal with a number of matters. In some cases the amendments deal with substantive matters and in other cases the amendments are consequential upon amendments dealing with substantive matters. A substantial number of these amendments are consequential upon amendment No. 32. That amendment added a schedule to the Bill setting out those matters in which the Administrative Appeals Tribunal is to have jurisdiction immediately. The Senate amendments consequential upon Senate amendment No. 32 are Senate amendment Nos 1 and 7 to 1 3. 1 point out that some of these amendments were moved by the Government in the Senate. Senate amendment No. 2 provides for the terms and conditions of service of members of the Tribunal to be prescribed by regulation instead of being determined by the Governor-General. Senate amendment No. 3 is consequential upon this amendment.

Senate amendments Nos 4, 6 and 29 are consequential upon Senate amendments Nos 20 to 28, omitting references to the Superior Court of Australia and substituting references to State and Territory Supreme Courts. Senate amendment No. 5 deleted a provision empowering the Minister administering the Act to permit a full-time member of the Tribunal to engage in outside paid employment. Senate amendments Nos 14 and 16 restrict to the Attorney-General the power to give a certificate entitling information or documents to be withheld from parties to proceedings before the Tribunal. Those amendments were moved by the Opposition.

Senate amendments Nos 15, 17 and 18 clarify the grounds on which such a certificate may be given, and make consequential changes. Senate amendment No. 19 provides that a witness before the Tribunal may have legal representation. Senate amendment No. 30 inserts provisions in the Bill establishing an Administrative Review Council. The Government accepts and supports that provision completely. Senate amendment No. 3 1 amends the provisions in the Bill relating to the granting of legal aid to parties before the Tribunal. The substantial change is the omission of any specific reference to the Australian Legal Aid Office. On this point I take the opportunity to say that of course the Legal Aid Bill is coming along. It will be considered by this House in the not too distant future. The Government stands firmly committed to the proposition of there being an Australian Legal Aid Office although the Government recognises that at this stage the Office has no legislative context or background, save for, I think, reference in some Acts, particularly the Family Law Act. That is a matter at which the Government can look at another time in the future when, I hope, the Legal Aid Bill becomes law.

Mr HOWARD:
Bennelong

-The Administrative Appeals Tribunal Bill has already been the subject of a very lengthy debate in the House and also in the Senate. The Opposition is pleased to say that it will support the amendments now moved by the Attorney-General (Mr Enderby). Most of them, as the AttorneyGeneral has pointed out, are consequential upon amendments inserted during the Senate debate. The Attorney-General acknowledged that, in substance, a number of the amendments which he has just moved arose from amendments inserted by the Opposition. I am very happy to say that this Bill will, because of this debate, pass into law very soon and will bring to a legislative conclusion a process which has been going on for a long time in Australia to provide a framework for appeals against the exercise of administrative discretion.

While, during the course of the debate, there were some substantial disagreements between the Government and the Opposition regarding the original form of the Government’s Bill, I think that all honourable members will acknowledge that there has been a degree of unanimity on both sides of the House regarding the desirability of establishing an effective tribunal to review administrative decisions. In this regard the Opposition is pleased to support the amendments which have been moved by the AttorneyGeneral. We believe that they will improve the Bill. We believe in particular that it is desirable that the principal law officer of the Crown, the Attorney-General, have the responsibility of deciding whether there should issue a certificate, which in effect excludes from the operation of the Tribunal certain acts of departments or Ministers. We believe that discretion should be with the Attorney-General and not with the individual Minister concerned. That point is, of course, the substance of amendments 1, 2 and 3.

The other amendments deal with the question of jurisdiction. The House will recall that, at the time the Bill was debated during the second reading and Committee stages, the Opposition was critical of the fact that no jurisdiction had been conferred upon the Tribunal, that having come so far the Government did not go the step further and confer upon the Tribunal some effective jurisdiction, that we were given a framework without any substance or a skeleton without any flesh, as I think the honourable member for Wentworth (Mr Ellicott) described it. Whilst the amendments now proposed by the AttorneyGeneral perhaps fall short of those originally devised by the Opposition, we are nonetheless pleased to accept them so that the Tribunal once established by this Bill when it becomes an Act will not only have an excellent framework but it will also have some substantial jurisdiction. The Opposition is pleased to support the amendments moved by the Attorney-General.

Amendments agreed to.

Mr ENDERBY:
CanberraAttorneyGeneral · ALP

– Consequential upon the acceptance by the House of amendments Nos 14 and 16 of the Senate, I move:

I need not go over these amendments again. The matter has been the subject of debate on many occasions and indeed was touched on in my opening remarks and also by the honourable member for Bennelong (Mr Howard). We accept the proposition and we think that the amendments improve the Bill.

Mr HOWARD:
Bennelong

-Might I have the leave of the Committee to mention one matter which perhaps ought to have been more appropriately mentioned during debate on the earlier clauses and that is the question of the Australian Industrial Court. The Committee will recall that -

The CHAIRMAN (Dr Jenkins) The honourable member is seeking leave to deal with this point. Is leave granted?

Mr Enderby:

– Yes, it is.

The CHAIRMAN:

– Leave is granted.

Mr HOWARD:

-I thank the Committee. Honourable members will recall that at the time of the earlier debate and also during the Senate debate the Opposition criticised the Bill for having conferred jurisdiction on the proposed Superior Court of Australia to hear appeals on matters of law from the Administrative Appeals Tribunal. Honourable members will be aware that the Opposition is opposed to the establishment of the Superior Court of Australia. During the Senate debate the Opposition secured the insertion in the Bill of amendments to confer that jurisdiction on the Supreme Courts of each of the States. Whilst the Opposition still holds to the view that it would be more desirable that the jurisdiction be vested in the Supreme Courts of the various States, in the interests of the legislation coming into force at an early date and having regard to the spirit of some compromise which has been adopted by the Government in respect of other Opposition amendments, the Opposition will not oppose the proposal of the Government that the jurisdiction be given to the Australian Industrial Court, although the attitude of the Opposition in that respect should not be interpreted as any alteration of our attitude regarding the establishment of an Australian Superior Court, nor indeed our general attitude regarding the types of jurisdiction that ought to be exercised by the Supreme Courts of the various States.

Mr ENDERBY:
CanberraAttorneyGeneral · ALP

-Mr Chairman -

The CHAIRMAN Before you proceed, Mr Minister, I noticed that the honourable member for Bennelong (Mr Howard) spoke by leave. I wonder whether he was a little ahead of himself in speaking to the amendments that you are going to deal with. Perhaps if you intended to answer his remarks in that area you could answer them when you move the motion.

Mr ENDERBY:

-Yes, Mr Chairman, I take your point.

Mr Howard:

– I apologise, Mr Chairman.

The CHAIRMAN:

– That is all right. The honourable member had leave and I let the matter flow. The question is that the amendments be agreed to.

Amendments agreed to.

Mr ENDERBY:
CanberraAttorneyGeneral · ALP

– I move:

That Senate amendments Nos. 20, 21, 22, 23, 23, 26, 27 and 28 be amended by omitting the words ‘insert “Supreme Court of a State or Territory” ‘ and substituting the words ‘insert “Australian Industrial Court’ ‘ ‘.

Perhaps this is now the appropriate time for me to say a few words in reply to what the honourable member for Bennelong (Mr Howard) said with leave a moment or two ago. The Government of course takes a different point of view on the notion of a Superior Court from that taken by the Opposition. The history of the Superior Court of Australia Bill is well known. The Bill has been through this chamber twice. It has been through the Senate twice and rejected twice in the Senate. There are certain other aspects that are probably not so well known, and they are these: The federal courts of Australia are in great need of reform. The Industrial Court itself is in great need of reform. The Territory Supreme Courts are in great need of reform and in particular of having an appellate court to which they can readily resort.

I say, just for the assistance of honourable members and particularly the honourable member for Bennelong, that it is my intention soon to introduce legislation that will not seek to create a Superior Court of Australia but which will seek to rationalise the existing federal courts in a much more modest way than was contemplated by the Superior Court proposal. The legislation will seek to establish an Australian federal court. Above that there will be, we hope, an Australian court of appeal which will take some of the original jurisdiction away from the High Court where it has often been said it should not be and also will serve as a court of appeal from the federal court and the Territory Supreme Courts. I just mention that to the honourable gentleman because I know he has a great interest in the subject. Indeed, so do other honourable members. It has been the subject of discussions with some of the High Court judges and some of the Territory judges. When I put the legislation forward to this House I hope it will find general support.

Amendments agreed to.

Mr ENDERBY:
CanberraAttorneyGeneral · ALP

– I move:

  1. After Part I of the proposed Schedule, insert the following Part:-

‘PART IA- AGRICULTURAL TRACTORS BOUNTY ACT

’ 1a. Applications may be made to the Tribunal for review of-

  1. a decision of the Minister under sub-section 6 (S) of the Agricultural Tractors Bounty Act 1966-1973;
  2. a determination of the Comptroller-General of Customs under sub-section 6 (6) of that Act;
  3. a decision of the Comptroller-General of Customs under section 8 of that Act; (.d) a decision of the Minister under section 9 of that Act;
  4. a decision of the Minister under sub-section 1 1 (3) of that Act;
  5. a determination of the Minister under sub-section 1 1 (6) of that Act; and
  6. a decision of the Minister under sub-section 1 1 (8) of that Act cancelling the registration of premises ‘.

Amend Part II of the proposed Schedule-

  1. by omitting from sub-clause (1) of clause 2 the words ‘Director-General of Civil Aviation’ and substituting the words ‘Secretary to the Department of Transport’; and
  2. by inserting in paragraph (b) of sub-clause (1) of clause 2, before the figures ‘237’, the figures and word ‘256 or’.

After Part V of the proposed Schedule, insert the following Parts: - ‘PART Va-BOOK BOUNTY ACT ‘5a. Applications may be made to the Tribunal for review of-

  1. a direction of the Minister under sub-section 3a (2) of the Book Bounty Act 1969-1975;
  2. a determination of the Minister under sub-section 4

    1. or (3) of that Act;
  3. a decision of the Minister under section 9 of that Act;
  4. a decision of the Minister under sub-section 1 1 (3) of that Act;
  5. a determination of the Minister under sub-section 1 1 (6) of that Act; and
  6. a decision of the Minister under sub-section 1 1 (7) of that Act cancelling the registration of premises. ‘PART Vb-CELLULOSE ACETATE FLAKE BOUNTY ACT ‘5b. Applications may be made to the Tribunal for review of-
  7. decisions of the Comptroller-General of Customs made under section 9 of the Cellulose Acetate Flake Bounty Act 1956-1973; and
  8. decisions of the Minister made under sub-sections 10

    1. , (4) and (5) of that Act. ‘PART Vc-COAL EXCISE ACT ‘Sc. Applications may be made to the Tribunal for review of decisions of the Collector under sections 12 and 16 of the Coal Excise Act 1 949- 1973. ‘PART Vd-COMMERCE (TRADE DESCRIPTIONS) ACT ‘5D, (I) Applications may be made to the Tribunal for review of-
  9. decisions of the Comptroller-General of Customs made under sub-section 7 (3) or section 10 of the Commerce (Trade Descriptions) Act 1905-1973 other than a decision in respect of which an appeal has been made to the Minister for Police and Customs under that sub-section or section, as the case may be; and
  10. decisions of the Secretary to the Department of Agriculture made under sub-section 1 1 (3) or section 13 of that Act other than a decision in respect of which an appeal has been made to the Minister for Agriculture under that sub-section or section, as the case may be. ‘(2) A person is not entitled-
  11. to appeal to the Minister for Police and Customs under sub-section 7 (3) or section 10 of the Commerce (Trade Descriptions) Act 1905-1973 against a decision of the Comptroller-General of Customs made under that sub-section or section, as the case may be; or
  12. to appeal to the Minister for Agricutlture under subsection 11 (3) or section 13 of that Act against a decision of the’ Secretary to the Department of Agriculture made under that sub-section or section, as the case may be, if an application has been made to the Tribunal for review of that decision. ‘PART Ve-COPYRIGHT ACT ‘5e. (1) Applications may be made to the Tribunal for review of decisions of the Comptroller-General of Customs made under sub-section 135 (6) of the Copyright Act 1968-1973 other than a decision in respect of which an appeal has been made to the Minister for Police and Customs. ‘(2) A person is not entitled to appeal to the Minister for Police and Customs under sub-section 135 (6) of the Copyright Act 1968-1973 against a decision of the subsection of Customs made under that sub-section if an application has been made to the Tribunal for review of that decision.’.

Amend Part VI of the proposed Schedule by inserting after paragraph (e) of sub-clause (2) of clause 6 the following paragraphs:- ‘(ea) a direction Of the Minister under paragraph 151 (8)

  1. a ) of the Customs Act; ‘(eb) a decision of the Collector under section 1 5 1 a of the

Customs Act; ‘(ec) a specification of the Minister under sub-section 157 (4) of the Customs Act; ‘.

After Pan VI of the proposed Schedule, insert the following Part:- ‘ PART Via- CUSTOMS REGULATIONS ‘6a. Applications may be made to the Tribunal for review of-

  1. decisions of a Collector made under regulation 128b and sub-regulation 132 (2) of the Customs Regulations; and
  2. decisions in relation to drawback of customs duty made by the Minister or a Collector under regulations 129, 131, 133 and 134 (other than declarations by the Minister under sub-regulation 131(1)) of those Regulations.’.

After Pan VII of the proposed Schedule, insert the following Part:- ‘ PART VIIa-DEFENCE FORCE RETIREMENT AND DEATH BENEFITS ACT ‘7a. (1) Applications may be made to the Tribunal for review of a decision of the Defence Force Retirement and Death Benefits Authority established under section 8 of the Defence Force Retirement and Death Benefits Act 1973-1974 in a case where, but for this Part, a request in relation to the decision could be made to that Authority under section 1 0 1 of that Act. ‘(2) A person is not entitled to make a request to the Authority referred to in sub-clause ( 1) of this clause under section 101 of the Defence Force Retirement and Death Benefits Act 1973-1974 in relation to a decision in respect of which an application may be made to the Tribunal by virtue of that sub-clause. ‘.

After Part IX of the proposed Schedule, insert the following Part:-

‘PARTIXA-EXCISE REGULATIONS

‘9a. Applications may be made to the Tribunal for review of-

  1. decisions of a Collector under regulation 58 of the Excise Regulations; and
  2. b) decisions in relation to drawback of excise duty made by the Minister or a Collector under regulations 76, 77, 78, 78a and 78b (other than declarations by the Minister under sub-regulation 77 (1) of those Regulations.’.

After Part XI of the proposed Schedule, insert the following Part:-

‘PART XIA-METAL WORKING MACHINE TOOLS BOUNTY ACT

‘11a. Applications may be made to the Tribunal for a review of-

  1. a decision of the Minister under sub-section 3 (2) of the Metal Working Machine Tools Bounty Act 1972-1973;
  2. b) a determination by the Comptroller-General of Customs under section 5 of that Act;
  3. a decision of the Comptroller-General of Customs under section 9 of that Act;
  4. a decision of the Minister under section 10 of that Act;
  5. a decision of the Minister under sub-section 12 (3) of that Act; (0 a decision of the Minister under sub-section 12 (6) of that Act;
  6. a determination by the Minister under sub-section 12 (7) of that Act; and
  7. h) a cancellation of the registration of premises made by the Minister under sub-section 1 2 ( 8) of that Act. ‘.

At the end of the proposed Schedule, add the following Part:-

‘PART XIV- TRADE MARKS ACT

‘14. (1) Applications may be made to the Tribunal for review of decisions of the Comptroller-General of Customs made under sub-section 103 (2) of the Trade Marks Act 1955-1973 other than a decision in respect of which an appeal has been made to the Minister for Police and Customs under that sub-section.

  1. A person is not entitled to appeal to the Minister for Police and Customs under sub-section 103 (2) of the Trade Marks Act 1955-1973 against a decision of the Comptroller-General of Customs made under that sub-section if an application has been made to the Tribunal for review of that decision. ‘.

These amendments relate to Senate amer ‘r -it No. 32 which sought to include a schedule giving instant jurisdiction to the Tribunal. I suggest that the Committee may consider these amendments together. They are numbered 5 to 13 on the list of amendments circulated by the Government. Honourable members will see from a perusal of them that they reflect the work that has been put into the subject during the parliamentary recess. The amendments now take the stage that we had reached when we last sat before the recess much further. As a result of negotiations with various government departments a whole sheaf of jurisdiction is now to be taken and given to the Tribunal.

The CHAIRMAN (Dr Jenkins:

-Is it the wish of the Committee to adopt the procedure suggested by the Attorney-General? There being no objection, we will follow that procedure.

Amendments agreed to.

Senate amendment No. 32, as amended, agreed to.

Resolutions reported; report adopted.

page 49

PRIVY COUNCIL APPEALS ABOLITION BILL 1975 [No. 2]

Second Reading

Debate resumed from 27 May 1975 on motion by Mr Whitlam

That the Bill be now read a second time.

Mr SNEDDEN:
Bruce

-The Privy Council Appeals Abolition Bill 1975 (No. 2), as we are reminded in the second reading speech of the Prime Minister (Mr Whitlam), comes to the Parliament for the third time. I think it is necessary to put it in perspective. The perspective is this: If this Bill were passed by both the House of Representatives and the Senate, a request then would be made to the House of Commons and the House of Lords to pass legislation in the form contained in the Schedule to the Act.

If the House of Commons and the House of Lords did so pass that requested legislation, it is very likely that it would have the effect of ending all appeals, in totality, from Australian judicial tribunals to the Privy Council. I say that in all likelihood it would have that effect because nobody can be certain that in law it would have that effect It would be subject to challenge and would need to be considered by the High Court itself. It would be considered not by the Privy Council but by the High Court. So, in any event, the matter could be determined by law. The position at present is that there can be no appeals to the Privy Council on matters that relate to the limits of power as between the Commonwealth and the States. That is provided in the Constitution. In order to appeal to the Privy Council there must be leave of the High Court; a certificate must be granted by the High Court. No such certificate has been given since 1912. Indeed, if my recollection is correct, only one certificate has been given under that provision of the Constitution. Therefore, one can reasonably assume that such a certificate would not be issued.

The next step in the process was, in 1968, to limit appeals to the Privy Council which related to Federal jurisdiction. So, there has been a limitation of the right of appeal to the Privy Council further than the practical effect of no certificate since 1912. As a companion to the present Bill, legislation was brought into the House- it was passed by the House and by the Senate- which would have meant that there could be no appeals from the High Court to the Privy Council. The net result of that would be that if litigants opted to go to the High Court they could not then go on to the Privy Council. If they wished to go to the Privy Council and it was an appellable cause, they would have to go direct from the State Supreme Courts to the Privy Council.

The legislation that was passed has not yet been proclaimed and has not come into effect. Presumably it will not be proclaimed until the result of the third consideration of the current Bill is determined by this chamber and by the Senate. There are 2 methods by which there can be an end to appeals from the State Supreme Courts to the Privy Council. One method is the course adopted in this legislation- that of requesting the British Houses of Parliament to pass an Act preventing appeals from any State court to the Privy Council. The other method is to have a constitutional referendum. There are good arguments for having a constitutional referendum. Let me deal first with the method which is adopted in this Bill. Honourable members will find that clause 7 of the Bill states:

The Parliament - that is the House of Representatives and the Senate- requests and consents to the enactment by the Parliament of the United Kingdom of an Act in, or substantially in, the terms set out in the Schedule.

The Schedule sets out the terms of the Imperial Act. As I construe that Schedule, it would mean that all appeals, on whatever justiciable issue before any judicial tribunal in Australia, would end.

Let us consider the way in which it is done- by request to the House of Commons and the House of Lords. If we are to emphasise the independence, which many people in Australia would emphasise, is this a reasonable way in which we should do it? The very argument that we should end all appeals is put on the basis that we are an independent country and we should end all appeals with our own judiciary and a final line of law should remain in Australia. I would support that. I think there is nobody in this chamber who would not support that. The High Court is the final court of appeal establishing the law. It is a single authority which all other judicial bodies should follow. We would all accept that I am sure. The Opposition accepts it. I most certainly do. Therefore, the argument is as to the method of doing it. If it is argued that we should have the High Court as the final court of appeal to establish law because of our independent status, is there anybody in this House who would support the Attorney-General (Mr Enderby) and the Government by saying that the way in which to do it is to establish our lack of independence; to establish clearly by an act of this House and the Senate that we do not have the full constitutional independence? We are asking the British Houses of Parliament to do the job for us. We are requesting the House of Commons and the House of Lords to pass this legislation.

I find it an offensive manner in which to go about it. Of course, the States find it an offensive manner in which to go about it. It pretends that it is fully in accordance with the Statute of Westminster, which is now more than 40 years old. The constitutional change in this 4 decades has been immense. Even at that time, it was undertaken by everybody who was concerned with the Statute of Westminister and the construction of it that there would be no interference in the States and that the House of Commons and the House of Lords would not be asked to do something which would alter the constitutional position of the States. If this legislation were passed and if we suppose that the British Parliament passed the legislation as requested, it would interfere with the Constitution of the States. Therefore, it is not only a wrong process in terms of the way we see the development of our Constitution but also a direct contradiction of what was undertaken clearly and without qualification at the time of the Statute of Westminster.

We know that the States still hold that view very strongly, because in 1973 I think four- certainly three- of the Premiers went to the United Kingdom to petition the Queen, the Prime Minister and other Ministers in the United Kingdom not to pass any legislation of this request nature. I ask honourable members to imagine the situation: If we establish the precedent of passing this legislation- request and consent legislationthere is no area into which the British House of Commons and House of Lords could not go to pass legislation which affected the States of the Commonwealth of Australia- the 6 constituent States. It ought not to be done in that way. I am not certain whether the States would maintain a view that there should be appeals direct from the State Supreme Courts to the Privy Council. I make it clear that I think that all appeals ought to go exclusively to the High Court and not to the Privy Council. But I am not prepared to participate in any way in a method which emphasises the dependence of Australia instead of its independence and creates a precedent for further request and consent legislation which can seriously imperil the constitutional status of the 6 constituent members of our federation.

Therefore, I will call in aid for the argument which I put the words of the Leader of the Government, the very man who introduced this legislation. I quote the Prime Minister (Mr Whitlam) speaking in 1968 as Leader of the Opposition in respect of the limitation of appeals legislation of that year introduced by my former colleague, Mr Nigel Bowen as he then was, who in now Chief Judge in Equity of the Supreme Court of New South Wales As recorded in Hansard, volume 58 page 853 in that year, the then Leader of the Opposition had this to say:

It is impossible for this Parliament or for the State Parliaments, by legislation, to abolish appeals from the State Supreme Courts to the Privy Council. This is because the Australian States opted out of the Statute of Westminster. The Australian States are still British Colonies. If they wanted to abolish appeals from their Supreme Courts to the Privy Council they would have to ask the British Parliament to repeal the Judicial Committee Appeals Acts of 1833 and 1844. This would emphasise Australia’s dependence on Britain. An alternative course- and I do not suggest that this is free of legal doubt- would be for this Parliament to pass a Bill for a referendum and for the Government to put that referendum to the people to abolish these appeals. This would emphasise our independence.

What was said in 1968 by the present Prime Minister, then Leader of the Opposition, is as true today as it was then. There is not a single word offered in any second reading speech as to why this course of action should be taken; that is, to establish our dependence and to ask the House of Commons and the House of Lords to pass this legislation.

Let us suppose- and I certainly hope that it will not come to pass- that this legislation did pass. There is then one necessary question to ask: Would the British Parliament- the House of

Commons and the House of Lords- accede to the request and pass the legislation? My own view is that the House of Commons would steadfastly refuse to do so. Why should the House of Commons in 1975 interfere in the internal constitutional arrangements of Australia? I believe that the Conservative Party and the Liberal Party would have no pan of it. Whether the Labour Party in Great Britain would respond to a request from the Labor Party in Australia to do so I am unable to say, but I feel most confident that the Labour Party in government in Britain would refuse to have any part of it. So we are probably setting about an empty exercise anyway. The emptiness of that exercise is manifested by the unwillingness on the part of Great Britain to interfere in our constitutional affairs.

The way in which what is proposed should be done is to consult the people who determine the Constitution, and that is all the Australian people, voting as they can, at a referendum. They could be asked whether they are in favour of the ending of appeals to the Privy Council or, to put it in more positive language, whether they are in favour of the final court of appeal in all matters legal being the High Court of” Australia. I favour it. If there was a referendum I would support it and I am quite sure that it would be supported by the people. That would have the effect of ensuring that the constituent States need not fear in a similar sort of manner anybody interfering further with the powers which were given them by the Constitution or in some way imperilling their position as constituent States of the Commonwealth.

For these reasons this Bill should be rejected by this chamber. I would regard it as offensive if it were passed. I would regard it as embarrassing if a request was actually made by the Government of my country to the government of another country to pass legislation in its Parliament to affect us. It is embarrassing and belittling to us. Can we not solve the issue ourselves? We have had plenty of opportunities in the life of this Government to consider referendum proposals. That is the way in which it should be done instead of going on with this nonsense. No doubt what the Government wants to do is to have the legislation rejected by the Senate. Then it will claim that it has been frustrated. Such action is not frustration. It is preventing the Government from establishing a precedent of dependence of the national Parliament of Australia on the national Parliament of Britain. I will have no part of it. The Bill ought to be rejected.

I recapitulate: If the Government wishes to have a referendum and to test the matter by constitutional amendment, I will support it because I very strongly believe that the final court of appeal should be the High Court of Australia. I conclude by emphasising the point that to end all appeals with the High Court would not in any way submit us to any risk of a deterioration of our legal standards in Australia, for I say without any disrespect intended whatever to the learned judges who form the Judicial Committee of the Privy Council none of them can claim greater wisdom in the law, either collectively or individually, than we can claim for our own High Court. We are not going to have any diminution in standards by the High Court’s becoming the final court of appeal. What we will have if we achieve this by referendum is a determination according to the Constitution and not by reverting to some anachronistic procedure which is fraught with peril and which stands as a direct threat to the independence of the constituent States which make up the Commonwealth of Australia.

Debate (on motion by Mr Enderby) adjourned.

Sitting suspended from 5.53 to 8 p.m.

page 52

APPROPRIATION BILL (No. 1) 1975-76

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

Bill presented by Mr Hayden, and read a first time.

Second Reading (Budget Speech)

Mr HAYDEN:
Treasurer · Oxley · ALP

– I move:

In doing so, I present the Budget for 1 975-76.

This Budget is presented at a time of high inflation and, by Australian standards, high unemployment.

Other countries have been confronted with much the same economic problems as currently bedevil Australia. Some have responded to these problems with drastic measures which, although partly successful in curbing inflation, imposed the severe social and economic costs of higher levels of unemployment and lost production to a greater degree than in any period since the Great Depression.

For example, the United States of America suffered unemployment rates peaking at 9.2 per cent, and still at 8.4 per cent; and peak to trough falls of 14 per cent in industrial production and 8 per cent in real Gross National Product. In the process inflation in terms of seasonally adjusted annual rates has fallen from around 14 per cent at the peak to around 7 per cent in the most recent quarter.

The costs, however, have been great.

By contrast, unemployment in Australia has remained below 5 per cent and the peak to trough decline in real Gross Domestic Product was 5 percent.

There are now some early signs of a recovery in the private sector. Retail sales are improving. Business inventories are falling. The home building industry is strengthening.

On balance unemployment in recent monthsand notwithstanding the rise in July- has been fairly steady. The situation will be carefully watched.

Meanwhile, unless appropriate economic measures are adopted now, the hopeful signs in the economy could prove illusory, and inflation could take off again from its already high level, to a thoroughly destructive effect. The private sector would find it increasingly difficult to function, with increasing business failures, and unemployment could rise to dramatically higher levels.

That situation can be avoided and it was with this objective in mind that this Budget was designed. Some sacrifice and patient restraint is called for from all of us in our demands for more resources, whether it is additional public services that are wanted or higher personal incomes.

We expect that as the expansion of public sector activity is restrained, the opportunities for private sector expansion will improve, though full responses to greater room for growth may take time to develop.

The public sector has played an important part so far in stimulating the movement towards recovery from the recession. Furthermore, the big increases in spending on our programs in the past two years were needed to overcome decades of neglect.

This Government began great programs of change in our society. The achievements are readily measurable. Incomes have risen, not only in terms of real personal disposable incomes but in terms of facilities provided to the whole community in health, in education, in social welfare. The Australian Government’s record in these areas is widely acknowledged.

Our reforms are enduring; they will not be reversed. Now we propose to pause to take stock of the achievements.

Because of the structure of our mixed economy, where three out of four jobs are in the private sector, there are firm limits on how far the public sector should be stimulated in this recovery phase. In framing the Budget, therefore, we have exercised the utmost restraint on government spending.

For these reasons, the key-note of this Budget is consolidation and restraint rather than further expansion of the public sector.

On the economic front, inflation is this nation ‘s most menacing enemy. We aim to curb it. Unless this aim is achieved, the nation’s productive capacity will run down and job opportunities will diminish.

Our present level of unemployment is too high. If we fail to control inflation unemployment will get worse.

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THE BUDGET AND ECONOMIC POLICY

The economic situation is reviewed in Statement No. 2 attached to the Budget Speech. Here I concentrate on the policy problems inherent in the situation. Recent developments offer some hope that 1975-76 will be a better year than its predecessor. For that, steady and responsible economic policies are needed.

The objectives we seek- continued economic growth and the control of inflation- are almost universally applauded. Achieving them is another matter. In that regard, this Budget is crucial.

But it is only one of several tools of economic management. Also of major importance are wages and salaries, monetary and external policies. There are important linkages between these arms of policy.

In coming to our budgetary judgments, we have had those linkages well in mind.

This year’s budgetary considerations began, as usual, with an examination of the prospective Budget aggregates. Expenditures were projected to grow much more rapidly than revenues and the prospective deficit was nearly double that of 1974-75. Clearly, such a deficit could not be countenanced under the circumstances.

In the context of an economy beginning to pick up, a deficit of the order initially projected would have been a prescription for accelerating inflation. Its acceptance would have been tantamount to abandoning concern with inflation, discarding our wages policies, condemning the corporate sector to an attack upon its profitability and threatening the future jobs of thousands of Australiansall at a time when the first signs of improvement in most of those respects are beginning to appear.

We are no longer operating in that simple Keynesian world in which some reduction in unemployment could, apparently, always be purchased at the cost of some more inflation. Today, it is inflation itself which is the central policy problem. More inflation simply leads to more unemployment.

Some might argue that a large deficit could be offset by a tough monetary policy- but this would mean greatly increased interest rates, disruption in financial markets, further depression of business confidence and serious company failures. That is an unacceptable option.

We therefore rejected a deficit or the order implied by all the expenditure proposals before us.

An alternative approach, in its own way equally extreme, would have been to seek to pull down outlays sufficiently to bring the deficit well below that of 1974-75. That would have caused severe disruption to the economy. Economic recovery would almost certainly have halted.

True, such an approach would certainly have dealt a solid blow to inflationary expectations. But at what a cost!

The prescription which this course would have entailed is just as unacceptable as the other prescription of letting inflation rip. This Government rejects a policy of deliberately creating massive unemployment and widespread business failures in order to stop inflation abruptly.

We have therefore tried to find a middle way- a line along which we can achieve sound and sustainable growth while at the same time bringing inflation down gradually over perhaps two or three years.

In the outcome, this Budget holds the share of Australian Government outlays in the total economy steady. Even to restrain that share from rising further has involved us in many painful decisions.

We have sought to frame a firm Budget in which the rate of growth in outlays has been halved as compared with last year.

It is a Budget neither too lax, thereby inviting a renewed acceleration of inflation; nor too harsh, causing unconscionable loss of production and the human and social costs of massive unemployment.

page 54

WAGES AND SALARIES

The Budget is one major instrument of economic policy. Another major policy area concerns the growth in wages and salaries.

If wages and salaries continue to outstrip productivity increases, the productive capacity of the economy will decline and we shall all eventually be worse off.

It is too early yet to determine whether wage indexation will succeed in dampening the recent wage-price spiral. The signs are mixed. The Government intends to do what it can to make indexation work.

Meanwhile, however, it is clear that some wage and salary pressures are unrealistic and, when successful, harmful. It does employees generally no good to get higher and higher money incomes if the results are just higher prices, a severe squeeze on profits, a slump in new investment and a contraction of job opportunities.

Wage and salary earners’ purchasing power is already being maintained through wage indexation and the indexation guidelines provide for increases to be sought on other specified grounds, including increases in productivity. To call as well for tax indexation, and at the same time expect the Government to provide better education, free medical services and so onwhich it can only do by increasing its claims upon our national resources- is to ask for the impossible.

Let me develop that thought a little. The average employee’s real after-tax earnings in 1974-75 rose by 7 per cent. When the increase in publicly provided benefits in education, health, social security and so on is added in, his total real income rose by 9.5 per cent.

Now this really is a very high rate of increase. It cannot be sustained.

It is not possible to provide more and more government services or transfer payments from the Budget without ultimately having to pay for them through cutting back after-tax earnings via increased taxes. It is not possible to get quarts out of pint pots.

In this Budget, we have exercised restraint. That restraint needs to be shared throughout the whole community. There must be a community will to combat inflation. There must be action to back up that will.

page 54

REINING IN BUDGET OUTLAYS

Last financial year, outlays increased very sharply- by 46 per cent.

Whereas total Australian Government Budget outlays maintained a remarkably stable proportion of around 25 per cent of Gross Domestic Product in the decade to 1973-74, in 1974-75 that proportion increased to 30.5 per cent. There was a number of special factors present in that outcome, including the need for some fiscal stimulus during the year.

There is noting sacrosanct about the particular public and private sector shares of GDP. But sharp movements in these shares can be disruptive.

If Budget outlays this year were again to grow faster than total spending, a further decline in the private sector share of GDP would ensue. That would mean an accelerated deline in investment and productivity as well as a further contraction in job opportunities.

This Government is committed to the present ‘mixed economy’ framework. We want to strengthen that framework. To reduce unemployment lastingly, revovery in the private sector is essential.

Expenditure restraint in this Budget will lay the foundations for a desirable balance between the public and private sectors.

Total outlays are now estimated to increase by 23 per cent in 1975-76, half the rate of increase of last year. Little change is expected in the proportion of Budget outlays to GDP. This offers a challenge to the private sector to respond with robust attitudes towards expansion which should serve well those who adopt them.

Cutting back the increase in Budget outlays is not easy. Everyone favours expenditure restraint in the abstract; few favour it when it affects them personally.

Many articulate groups in the community champion their favourite causes and I know that we will soon be hearing from them. I hope that, when we do hear, they will help the Government and me by indicating what alternative expenditure cuts might have been made or what tax increases they would be willing to bear.

Meanwhile, in approaching the task, we have distinguished between programs of utmost priority; programs where very rapid increases in recent years now permit some consolidation; and programs which might be deferred for a time.

In all this we have protected the less well-off members of the community. Inevitably in the process, many desirable expenditures have been scaled down or postponed. We know this will concern and disappoint many. That is unfortunate, but in present circumstances it is also unavoidable.

The process of consolidation upon which we embark in this Budget will need to be continued through a planned approach to expenditures into the years ahead. Indeed it will not be until the next Budget that we shall be able to begin to reap the fruits of consolidation in terms of the increased budgetary flexibility which we need. I am therefore considering the institution of improved procedures to ensure that the future growth of government spending is consistent with both broad economic management requirements and with the Government ‘s highest priority social objectives.

page 55

OUTLAYS

Outlays in 1975-76 are estimated to total $21,91 5m, an increase of 23 per cent over actual outlays last year.

Let there be no misunderstanding. Certainly we have cut back the growth of public expenditure. But the outlays we are undertaking provide continuing support for programs of scope and imagination never envisaged, much less undertaken, by our opponents.

The cuts in proposed expenditure have been painful. But unfulfilled hopes should not obscure the realities of the range of reforms which already have touched- and will touch- every area of our society.

I propose here only to mention briefly the major expenditure proposals. Statement No. 3 attached to the Budget Speech sets out the expenditure programs in great detail. The facts given in that Statement will show, function by function, the detailed working out of the process of consolidation I have referred to.

Additional information will be announced by the responsible Ministers.

page 55

DEFENCE

Defence expenditure in 1975-76 is estimated at $ 1,800.1m.

Last year we approved the acquisition of a number of major items for the Services, including long-range maritime patrol aircraft, tanks and patrol frigates. Significantly greater expenditure will be incurred this year on capital equipment, improvements to defence installations and on housing for servicemen.

The Minister for Defence will make a detailed statement on Defence matters at a later time.

page 55

EDUCATION

One of the most important areas in the Budget is education.

In 1975-76, total outlays on education are estimated at $ 1,908m, an increase of $237m over last year.

In the first full year of office of this Government, Australian Government expenditure on education almost doubled. Last year, it almost doubled again.

We have therefore almost quadrupled expenditure on education in these two years, and we are maintaining in 1975-76 the high level of expenditure now reached. This advance since 1972-73 reflects our determination to make good the relative neglect of earlier years.

Our initiatives include pronounced increases in expenditure on schools and teachers colleges; expansion of technical and further education; acceptance of full financial responsibility for tertiary education throughout Australia; abolition of fees for tertiary and technical education and the introduction of new student assistance measures; and increased academic salaries adopted on the recommendation of the Academic Salaries Tribunal, with effect from October 1974.

This year, recurrent expenditure will be maintained at no less than the present real levels, but capital expenditure will be limited to essential projects.

Ordinarily, the 1976 calendar year would have seen the start of a new triennium for the financing of universities, colleges of advanced education and schools; and the technical and further education area would have been phased into triennial financing in July 1976. However, we have decided to treat the calendar year 1976 as a year outside the triennial progression.

During the period to December 1976 we will continue the programs of the education commissions and present practices on escalating appropriations for cost increases will be continued.

In the meantime, the education commissions will be asked to review their recent triennial reports and to bring in revised recommendations by March next for new triennial programs to commence in January 1977. The Minister for Education will provide more details later.

The remarkable quadrupling of the total education expenditure figures in just over two years has been only part of the record. Benefits in relation to the quality of education will continue to flow on a long term basis from the machinery we have established and the programs we have fostered. Budget Paper No. 8, on education, outlines our record of achievements in this area.

Care and Education of Young Children

The Government is providing $74m in financial assistance to community organisations and to the States towards the care and education of young children.

page 56

HEALTH

Medibank

Medibank was launched on 1 July last. $ 1, 445m is included in the Budget for this program.

This financial year, medical and optometrical benefits are estimated to cost $6 15m while the hospital side of Medibank is estimated to cost $822m.

Community Health

A sum of $65m is appropriated for services provided under the Community Health Program.

Hospitals Development Program

A further $ 108m will be made available to the States in 1975-76 by way of capital assistance for the development of public hospitals and related health care facilities.

The Australian Government will maintain its contribution at least at this level during each of the remaining 3 years of the program.

Nursing Home Benefits

It is proposed to increase the additional nursing home benefit in three States- New South Wales, Queensland and Western Australia. These increases represent the first step towards a common nursing home benefit rate for all States.

The effect of the increases will be that ordinary care patients in those States will receive a uniform total benefit of $66.15 a week. Rates of benefit for ordinary care patients in other States, which are already higher, will be maintained at current levels. The supplementary intensive care benefit will be increased from $21 a week to $30.80 a week in all States. This benefit has remained unchanged since January 1969.

The increases in both the additional and intensive care benefits will not apply to patients in Government nursing homes.

These increases, estimated to cost $10m in 1975-76, take effect from the first pension pay day in November.

Medical Research

The Government will increase by 39 per cent, to $24m, its support in the 1976-78 triennium for medical reseach under the auspices of the National Health and Medical Research Council. Expenditure in 1975-76 is estimated at $4.0m.

Additional payments totalling $lm will be made to the Florey and Walter and Eliza Hall research institutes.

page 56

SOCIAL SECURITY AND WELFARE

Since this Government came to office a great stride forward in the field of social security and welfare has been taken. Now we must take stock of our programs and consolidate our gains.

To that end the Prime Minister has announced that the Government is to institute a review of Australia’s income security system.

Social Security Benefit Rates

The standard rate of social service pensions and benefits will be increased in the Spring of 1975 by the percentage increase in the Consumer Price Index between the December quarter 1974 and the June quarter 1975; and again in the Autumn of 1976 by the increase in the Consumer Price Index between the June and December quarters of 1975.

This will mean a first increase in the standard rate of $2.75 a week. The combined married rate will be increased by $4.50 a week so as to maintain the standard rate at 60 per cent of the combined married rate. These increases will become effective from the first pension pay day in November.

The basic pension has increased by 80 per cent since the December quarter of 1972, well ahead of the rate of increase in average weekly earnings 56 per cent- and consumer prices- 41 per cent. The relative improvement compared to the average wage earner is even more pronounced in after-tax terms. Since the December quarter of 1972, the increase in take-home pay of the typical family man on average weekly earnings has been 50 per cent.

The increases proposed will maintain the real purchasing power of those greatly increased pensions and are estimated to cost $233m in 1975-76.

There will be no change in the rate of unemployment and sickness benefit payable to persons under 18 years of age.

The rates of additional pension and benefit payable for dependent children, including student children, are to be increased by 50c to $7.50 a week.

Abolition of the Means Test

For budgetary reasons the Government will not be able to complete the final stage of the abolition of the means test- for those aged 65 to 69 years- as quickly as it had hoped. Nonetheless we intend to make as much further progress as economic circumstances allow.

We have decided to abolish the means test for residentially qualified persons aged 69 years from 1 July 1976. The necessary legislation will be introduced in the Autumn sittings.

Repatriation Benefits

Since coming to office the Government has improved repatriation benefits substantially. Legislation providing further improvements will be introduced in the current sittings and in Autumn 1976.

Further information will be announced by the Minister for Repatriation and Compensation. Details are set out in Statement No. 3.

Aboriginal Advancement

The record level of expenditure on Aboriginal advancement achieved in 1974-75 will be exceeded in 1975-76; direct expenditure in 1975-76 is estimated at $193m, compared with $ 158m in 1974-75 and $98m in 1973-74.

page 57

HOUSING

Welfare Housing

In the light of the recovery in private housing now in train, advances totalling $364.6m will be provided to the States for welfare housing purposes in 1975-76. Bearing in mind the $ 10.4m advanced in June on the basis that it would be taken into account in this year’s allocation we are thus maintaining advances in 1975-76 at the greatly increased 1974-75 level and well above the $2 1 8.6m allocated in 1 973-74.

Australian Housing Corporation

Responsibility for the Defence Service Homes scheme has been transferred to the newly proclaimed Australian Housing Corporation. An amount of $ 122.5m will be available for Defence Service Homes advances in 1975-76.

A further $20m has been provided for the Corporation in 1975-76. Together with the $25m remaining unspent from 1974-75, this will enable the Corporation to meet its administrative expenses and to undertake new programs in the housing field.

Details will be announced later by the Minister for Urban and Regional Development.

page 57

URBAN AND REGIONAL DEVELOPMENT

This year we plan to spend $442m on urban and regional development programs.

A comprehensive statement by the Minister for Urban and Regional Development is being tabled with the Budget papers.

Canberra

Expenditure on development for residential, commercial and community uses in Canberra this year is estimated at $43. lm.

Growth Centres $38.6m is being provided in 1975-76 for further works and planning by the AlburyWodonga Development Corporation.

Agreement has been reached with New South Wales for financial assistance for two further growth centres at Bathurst-Orange and the South-West sector of Sydney and $28.5m has been allocated for these centres.

Land Agreements

This program will help stabilise land prices. Expenditure this year is estimated at $53.6m.

Sewerage Program

This year a further $115m will be provided towards eliminating the backlog of sewerage services.

Woolloomooloo Redevelopment $ 14.67m is being provided to New South Wales to assist with land acquisition and site development in the Woolloomooloo Basin in Sydney. The Australian Government has also agreed to transfer, at no cost, land it owns in the area valued in excess of $ 1 1 m.

page 57

CULTURE AND RECREATION

$132m is being provided to the Australian Broadcasting Commission. Provisions are also being made for support for the Arts through the Australia Council and for the Australian Film Commission, International Women’s Year, the National Estate and Nature Conservation programs.

Figures are given in Statement No. 3.

page 58

ECONOMIC SERVICES

Postal and Telecommunications Services Since 1 July 1975, the former functions of the Post Office have been undertaken by the Australian Postal Commission and the Australian Telecommunications Commission.

Increased postal and telecommunication charges to operate from 1 September 1975 have already been announced. The increased charges are necessary to cover significant increases in the cost of providing services and to enable each Commission to comply with the requirement, under its constituting legislation, to cover its costs and finance at least 50 per cent of its capital expenditure from internal sources.

The amount to be provided from the Budget to help finance the capital programs of the two Commissions comprises $14m for the Postal Commission and $403m for the Telecommunications Commission.

If the increased charges were not applied, then the costs they were to cover would have to be covered in some other way. That is, the Government would either have to increase direct or indirect taxes, or add to the deficit by printing money.

Alternatively, the Goverment could cut-back further on existing programs but it is clear that additional cut-backs would be extremely difficult to make.

Air Transport

It was announced in the 1973-74 Budget Speech that the Government proposed to increase the rate of recovery of the costs of providing and operating airport and airway facilities to 80 per cent within 5 years. It was then estimated that a recovery rate of 70 per cent should be reached in 1975-76.

Despite increases in air navigation charges, very little progress has been made towards this objective. Currently about 55 per cent of costs are being recovered.

The Government does not believe that the general taxpayer should continue to subsidise air services and proposes to achieve its objective of 80 per cent recovery by 1977-78. Action will be taken to increase the recovery rate to 70 per cent this year.

This will require increases in air navigation charges substantially greater than the maximum 15 per cent annual increase referred to in the 1973 Airlines Agreement. The airlines have undertaken in the Agreement to negotiate such changes as are necessary to achieve the objective of 80 percent recovery by 1978.

Rail Transport

An amount of $5 1.9m is being provided to finance the new Australian National Railways Commission’s 1975-76 capital works program, compared with expenditure of $ 14.6m by the former Commonwealth Railways in 1974-75. This includes work on the railway between Tarcoola and Alice Springs, and on the Adelaide to Crystal Brook standard gauge line. It also includes funds for the Tasmanian railways and for the South Australian railways.

A further $40m is being provided to the Commission as a subsidy to cover its estimated losses in 1975-76; the Tasmanian and nonmetropolitan South Australian railways are expected to account for about 80 per cent of this loss.

Urban Public Transport the Australian Government has so far agreed to provide $138m under the terms of the Urban Public Transport Assistance Agreement to assist the States to upgrade their urban public transport systems.

We expect to provide some $43m this year towards the cost of presently approved projects.

Shipping

An amount of $56.9m is being provided from the Budget to help finance the Australian National Line ‘s capital program.

Provision is also made for subsidy payments of $lm for the operations of the Empress of Australia between the mainland and Tasmania and $3.9m in respect of northbound general cargo services between Tasmania and the mainland.

Freight rates on this latter service are being maintained at present levels pending receipt of the Report by the Nimmo Commission of inquiry.

Roads

A total of up to $445m will be made available for roads in the States in 1975-76. This provision should ensure that the real level of our outlays for this purpose is maintained this year.

Pipeline Authority

An amount of $67m has been provided for advances to the Pipeline Authority for expenditure on the Moomba-Sydney natural gas pipeline and associated works. The pipeline is expected to be completed early in 1 976.

Wool

As already announced, the Government has authorised the Australian Wool Corporation to continue to operate a minimum reserve price equivalent to 250c per kilo clean for 2 1 micron wool during the 1975-76 season. An amount of $80m is included in the Budget for advances to the Corporation; the Government will also guarantee further borrowings of $70m from private sources.

While we judge that this $ 150m should be adequate, we shall of course keep the position under close review.

Beef

In addition to existing measures, we will provide $ 19.6m for the joint Australian Government/State Government scheme of carry-on finance at concessional rates of interest.

An extra $8m will be provided to the Commonwealth Development Bank to supplement the $20m provided to the Bank last year to lend to seriously affected beef producers.

As already announced, the question of further short-term assistance for beef producers has been referred to the Industries Assistance Commission.

Rural Reconstruction

The Government is providing $50m in 1975-76 to facilitate the adjustment of certain rural industries to changing market conditions through the Rural and Fruitgrowing Reconstruction Schemes and the Dairy Adjustment Program. These schemes expire on 30 June 1 976.

The question of possible future arrangements is under examination by the Industries Assistance Commission.

Mining Industry

Pending the passage by the Parliament of a new Petroleum and Minerals Authority Bill, $ 10.4m has been provided in the appropriation of the Department of Minerals and Energy to meet commitments entered into by the former Petroleum and Minerals Authority.

The appropriation for the Australian Atomic Energy Commission in 1975-76 includes approximately $4.7m for uranium exploration in the Northern Territory.

Australian Industry Development Corporation

The capital stock of the Australian Industry Development Corporation is to be increased by a further $25m to $75m.

Provision is made also for $50m to be on-lent to the Corporation from the proceeds of official overseas loans.

Regional Employment Development Scheme

In present circumstances, no new projects are being approved. There remains, however, a large volume of commitments, in respect of which an amount of $ 135m is included in the Budget. This will provide continuing employment on previously approved REDS projects for some time.

Industrial Training

The Government is allocating $88m this financial year to its various manpower training programs, including NEATS and support for apprenticeship training.

Immigration

We have decided to double the migrant contribution towards assisted passage costs, to an amount of $ 1 50 per family or single person.

page 59

GENERAL PUBLIC SERVICES

Legal Aid

To extend the availability of legal aid we are proposing to establish a further 28 regional offices during 1975-76.

Total expenditure on legal aid in 1975-76 is estimated at $ 16.7m; this includes $3m on legal aid for Aboriginals.

Foreign Affairs and Overseas Aid

Outlays from the Budget on foreign aid, excluding defence co-operation, are estimated to increase from $334m in 1974-75 to $385m in 1975-76.

Papua New Guinea will continue to be the major recipient, receiving an estimated $2 10m in 1975-76.

Further details are included in Statement No. 3 and in the separate document being tabled with the Budget papers.

Ceiling on Staff Growth

Our measures to restrain the growth in spending apply particularly to staff growth. As already announced, the growth in full-time staff employed under the Public Service Act in 1975-76 is to be limited to a ceiling increase of 2.8 per cent.

After allowance for the expected increase in staff on leave, the ceiling increase in operative staff is effectively 1.5 per cent. This compares with increases in operative staff of over 4 per cent in 1972-73 and 1973-74, and over 5 per cent in 1974-75. Government authorities financed from the Budget have been requested to operate within an overall ceiling increase of 2.2 per cent.

Administrative Savings

We are also imposing stringent restraint on administrative expenditures. Overall, the provisions for administrative expenses for Departments and statutory authorities (other than business undertakings) financed from the Budget have been reduced by about 10 per cent.

Particular examples of restraint include economy class domestic air travel for Members of Parliament and Government employees -

Mr HAYDEN:
ALP

– I knew I would touch a tender spot. Particular examples of restraint include economy class domestic air travel for Members of Parliament and Government employees, restrictions on the use of Government cars, reductions in overseas travel, non-replacement of existing office furniture and fittings and restrictions on overtime working and engagement of consultants.

It is estimated that these measures will produce savings totalling about $35m in 1975-76. They will not only make a significant contribution towards reducing the deficit, but will also induce greater efforts by Departments and authorities to improve efficiency and avoid waste.

page 60

PAYMENTS TO OR FOR THE STATES AND LOCAL GOVERNMENT AUTHORITIES AND NATURAL DISASTER RELIEF

General Purpose Funds for the States

At the Premiers’ Conference on 19 June 1975 the Australian Government undertook to improve the financial assistance grants arrangements with the States.

These improvements took the form of an addition of $220m to the grants otherwise payable in 1975-76, with this amount to be subject to escalation under the formula in subsequent years, and of an increase, in 1 976-77, in the socalled ‘betterment factor’ from 1 .8 per cent to 3.0 per cent. It is estimated that the financial assistance grants payable to the States in 1975-76 under these new arrangements will total about $3,185m, an increase of $81 lm or 34.2 per cent over the grants paid in 1 974-75.

In addition, the Government has accepted recommendations by the Grants Commission that special grants totalling $38.8m be paid to Queensland and South Australia in 1975-76.

The Government also agreed in June to support a 1975-76 Loan Council program for State Governments of $l,291m which, after adjustments are made for special factors, represents an increase of 20 per cent over the program for

1974- 75.

Local Government Grants

The Government has already announced its acceptance of the recommendations contained in the Grants Commission’s second report on unconditional financial assistance for local government totalling $79.9m, or 42 per cent more than last year.

Natural Disaster Relief

It is presently estimated that expenditures by the Government on natural disaster relief in 1975- 76 will total $57.6m, of which $48. lm will be for relief measures arising out of the devastation of Darwin by Cyclone Tracy.

Included in this latter amount are $33m for continuation of compensation payments to Darwin residents and $12m for the maintenance of various relief measures, including emergency accommodation and loans to small businesses.

We have also established the Darwin Reconstruction Commission, and provided $99.7m for the Commission’s construction program in 1975-76.

page 60

RECEIPTS

In deciding on our revenue measures we took it as essential that there be some reduction in both personal and company income tax. At the same time we judged it necessary to reduce the potential deficit somewhat.

Consequently, we have determined on a mix of tax measures, some of them increasing the revenue and some reducing it. Their net effect is to increase total tax revenue in 1975-76 by an estimated $207m. Details are given in Statement No. 4.

I turn now to the individual tax measures.

Beer

It is proposed to increase the duty on beer immediately by the equivalent of 4c a 10 ounce glass. The estimated revenue yield in 1975-76 is $234m.

Potable spirits

Duties on potable spirits have been increased considerably over recent years and the present scope for further increase is not great. It is proposed to increase the duty on potable spirits immediately by the equivalent of lc a nip. It is also proposed to complete the third and last step in the phasing out of the differential between the rates of duty on brandy and other potable spirits. The estimated revenue yield of these measures in 1975-76 is $ 12m.

Tobacco Products

The duty on tobacco and cigarettes will be increased immediately by the equivalent of 6c an average packet of 20 cigarettes, with equivalent increases on other tobacco products. The estimated revenue yield in 1 975-76 is $75m.

Crude Petroleum

The present price of domestically produced crude oil is about one-quarter of the landed price of imported crude. The low domestic price is not conducive to rational resource usage. Yet is does not necessarily follow that increases in the domestic price should be reflected fully in corresponding increases in prices to Australian producers: the rise in world oil prices has occurred largely because governments in OPEC and other producing countries have greatly increased their taxes on production.

The indigenous crude oil absorption policy, which runs for a period of 10 years from 17 September 1970, provides for a review of price after 5 years. The Government is considering and will be announcing shortly the price arrangements which will apply from 17 September next.

Meanwhile, the Government has decided to impose a levy of $2 per barrel on production of crude oil, condensate and naturally occurring liquified petroleum gas, with immediate effect. The levy will not fall on natural gas or refinery products although, of course, its price effects can be expected to spread through into the latter.

The estimated revenue yield in 1975-76 is $280m.

Export Duty on Coal

Following the sharp rise in oil prices, coal prices have risen dramatically in the past two years, in many cases trebling. In consequence, very large windfall profits are currently being earned by the export sector of the coal industry. The Government considers it reasonable that part of these increased profits should be channelled to the community by means of an export duty.

Price movements for various classes of coal have not been uniform but higher quality coking coals have experienced much greater price increases than other coals. It is therefore proposed to levy export duty of $6 per tonne on these high quality coking coals and $2 per tonne on other coals, with immediate effect. To protect buyers in respect of prices recently renegotiated, approval to export will be in terms of those prices and no consideration will be given to adjustment of prices to take account of the duty.

The revenue yield from this duty in 1975-76 is estimated to be $ 1 20m.

Details of this and the other levies I have announced will be given later tonight by the Minister representing the Minister for Police and Customs.

Company Tax

The Government has had before it the recommendations on business taxation contained in the Mathews Report on ‘Inflation and Taxation’. These are important recommendations with complex ramifications and there is a need for further study of them before final decisions are made. Meanwhile, we are acting to alleviate business taxation and we have been aided in coming to our decisions by the Mathews Report.

The first of the Mathews recommendations related to the valuation of most trading stocks for taxation purposes. Its primary purpose was to ease pressures on business liquidity in inflationary periods.

After careful consideration we have decided that it is not at this time possible to act on this recommendation, partly because of its enormous revenue cost but also because of the complexity and difficulty involved in giving effect to the Committee’s proposal to defer tax for individual firms on the basis of each individual firms ‘s changing stock values. Very serious practical problems would also be created for both industry and the Taxation Office in implementing the Committee’s suggestion that deferred tax be collected when stock values fall or when businesses change hands. It has not been possible to this time to resolve these difficulties.

We shall, of course, keep the question of business profitability and liquidity under careful notice but, in all the circumstances, we have turned to the other alternative in this area which was mentioned by the Mathews Committeenamely, a reduction in company tax.

The Government has decided to adopt this alternative and proposes to reduce the general rate of company tax by 2.5 per cent to 42.5 per cent. The new rate will apply to 1974-75 income and will cost an estimated $ 120m in 1975-76.

We have also decided to continue the system of doubled rates of depreciation beyond 30 June 1975 and extend it to all sectors of commerce and industry. We have here taken note of the Mathews Committee’s advice that: ‘Accelerated depreciation and investment allowances are appropriate policy options for a government which wishes to influence the level or the pattern of private investment . . .

The doubled rates of depreciation will be made applicable to all new plant other than motor cars and utility trucks, including plant used in industry such as transportation and construction that were excluded from the 1974-75 double depreciation provisions and from the investment allowances granted from time to time by the previous Government. The first cost to revenue of this proposal will fall in 1976-77 and will approximate $7 5m.

Our decision to opt for double depreciation rather than the indexation of depreciation allowances as recommended in the Mathews Report reflected our view that it was desirable to introduce immediately a clearly understood aid to business investment. The indexation recommendation would introduce some complex new elements into the depreciation provisions and there is a need for further study as to how a practicable and equitable scheme might be worked out.

Meanwhile, the double depreciation provisions will without delay greatly help the business sector in the planning of its investment and cash flows.

Personal Income Tax

At this point I say simply that we have decided to introduce a radical new personal income tax system. We have undertaken fundamental reform of the tax system with one overwhelmingly important objective- the achievement of a more equitable distribution of the tax burden.

Before explaining the features of the new scheme, I want to explain the rationale behind what is perhaps the most revolutionary change since the inception of our personal income tax system. Yet one fact will highlight the direction we are taking more than anything else I might say. Under the new system nearly half a million existing taxpayers will be freed from tax entirely. Those earning least in the community will be exempted from personal tax.

A very large number of taxpayers will benefit by the changes we are making. But what is of greatest satisfaction to the Government is the fact that those in most need will benefit substantially.

In the best of economic times inequalities could not be removed in one sweep. We make no pretence of doing so now. We do say that the new system represents a very considerable advance.

The existing personal income tax system has persisted almost unchanged for over two decades and has about reached the end of its tether.

Criticism of the present arrangements has rightly focused upon the excessive marginal rates which are imposed upon taxpayers on average incomes. For example, a taxpayer on average weekly earnings with a dependent wife and two dependent children and average other deductions would lose 44 cents of each dollar of his pay in higher taxation if the present rates were maintained. If he had smaller deductions his marginal rate could be as high as 48 cents in the dollar.

In deciding what to do about this state of affairs we had several choices. The Mathews Report recommended that this year we introduce tax indexation or, alternatively, introduce a new tax schedule with a commitment to index it in future. The Asprey Report recommended that a quite different type of rate scale be introduced, with an initial marginal rate much higher than at present and with much lower marginal rates at intermediate ranges of income.

So far as the rate scale is concerned, what we are proposing is based on the Asprey concept. But before going on, I should explain the Government’s attitude to tax indexation.

It would not be possible to introduce tax indexation this year because of the very great revenue cost. In any case, the present rate scale is wholly unsatisfactory as a basis for indexation. Consequently we are taking up the Mathews suggestion of introducing a new tax scale to apply this year.

As for next year, no Government can commit itself to a precise measure a year hence when the revenue implications are so large but the circumstances of that future time are not foreseeable. However, in framing the 1976-77 Budget the Government will take full advantage of the greater flexibility- including greater flexibility in adjusting for price increases- which this year’s reform of the tax system will offer. Indexing of the new scale will thus be available as an option next year.

Meanwhile, so far as this year is concerned, I mention that the new scale will actually reduce marginal tax rates of taxpayers on average weekly earnings by more than would be the case if the present scale were indexed. That is, what we propose will produce a better result than tax indexation so far as the marginal ‘tax bite’ is concerned.

I turn now to the proposed new system. The Asprey Report drew attention to the low marginal rates of tax on low incomes and suggested that they be increased. It added: ‘The most important advantage of an initial step of some magnitude is not that it raises much tax from the taxpayers whose total income is confined within this step; it is rather that a sizeable minimum average rate is thereby struck for all higher incomes. Without a significant rate on the lower steps, much higher marginal rates than otherwise must be imposed further up the income scale . . .’

This approach, of course, involves raising more tax from so-called low income earners. Many such people depend solely on their own incomes and could hardly be expected to pay more tax. Certainly this Government does not expect them to do so.

But many others in this income group are members of multi-income households who might be supposed, on general social grounds, to be capable of contributing further.

We have therefore devised a system designed to retain the desirable features of the Asprey suggestion but to exclude the undesirable income distribution features. Material is available describing the new system in detail. Here I outline its main features.

First, there will be a new and much simplified rate scale, with only seven steps instead of the present fourteen. The marginal rates will begin at 20c in the dollar on taxable incomes up to $2,000 rising to 27c in the dollar on incomes from $2,000 to $5,000 and 35c in the dolar on incomes from $5,000 to $10,000. The marginal rates rise in four further steps to reach a maximum of 65c in the dollar at a taxable income of $25,000.

On incomes from $6,000 to $25,000 marginal rates generally will fall, the greatest fall being in the $8,000-$ 10,000 income range, where the drop is from 48c to 35c in the dollar.

Secondly, every individual taxpayer, whether or not he or she has dependants or spends on items which attract deductions, will receive a minimum concessional rebate of $540. This will protect low income earners from the impact of the higher marginal rates at low income levels.

The minimum concessional rebate does this by, in effect, increasing the minimum taxable income from its present $1,041 to $2,520 per annum. The introduction of this rebate will make possible the elimination of the present age rebate and the new scheme provides for that.

Thirdly, the present concessional allowances for dependants will be replaced by much more generous dependants’ rebates. For a spouse the rebate will be $400; for children it will be $200 for the first child under 16 and student children redefined to include all children under 25 receiving full-time education, and $150 in respect of other children.

There will be a separate rebate of $200, known as the Sole Parent Rebate, for parents without partners, such as widows or widowers or unmarried persons, who have the sole responsibility for maintenance of dependent children.

Fourthly, with some exceptions 1 shall mention, the existing concessional deductions for private expenditures will be converted to rebates calculated at 40c in the dollar of the amounts allowable under the present law. However, the minumum concessional rebate will be regarded as covering the first $540 of rebate claimable, other than for dependants. The effect of this will be that taxpayers whose rebatable expenditures are less than $ 1 ,350 will not need to itemise them as they will be covered by the minimum concessional rebate.

There will be certain exceptions to these rebate arrangements, as follows.

The existing housing loan interest deduction scheme will remain in its present form; that is, allowable deductions as presently prescribed will reduce taxable income.

The existing provisions for gifts to charities and school building funds will also remain unaltered.

There will be separate Zone Allowance Rebates over the above the $540 minimum concessional rebate for taxpayers in the prescribed zones.

Finally, the allowable deduction for education expenses, now one of the concessional deductions to be converted to the rebate basis, will be increased from $ 1 50 to $250 per student child.

It is not possible to outline all the benefits of the new tax system in this Speech. The main attractions, however, are as follows: nearly 500 000 taxpayers will be freed from tax entirely; there will be a very big increase in minimum taxable incomes- for example, to $5,372 in the case of a taxpayer with a dependent wife and two dependent student children; there will be a very big drop in marginal rates of tax on incomes in the range into which most full-time employees fall; taxpayers with dependants are heavily favoured as compared with the present system, particularly in the lower income ranges. For example, in his statement announcing tax cuts last November, the Prime Minister gave as an illustration the taxpayer with a dependent wife and two dependent children earning $100 a week. If his other deductions were 10 per cent of his income his tax payable would have declined from $568 in 1973-74 to $264 in 1974-75. Under the new arrangements such a taxpayer is freed from tax entirely.

We believe that the new system is both more equitable and more adaptable for revenue raising and economic management purposes.

Because of the extensive changes it entails, it will not be possible to have the proposed system in operation for PAYE purposes until 1 January 1976.

The cost to revenue of the new system I have outlined cannot be as simply summarised as is usually the case. On a true ‘full year’ basis, the cost to revenue will be $205m.

However, an additional advantage of the new system to taxpayers is that it will permit a large reduction in the present degree of overdeduction of PAYE tax instalments- and a consequential reduction in refunds which, this year, are estimated at $ 1,025m. That will assist the monetary authorities by reducing seasonal swings in revenue flows; it will also reduce the need for taxpayers to make, as it were, involuntary loans to the Government.

The combined effect of the taxation measures I have outlined and of the more accurate PAYE deductions which they make possible will be a substantial reduction in PAYE tax instalments for most taxpayers from the beginning of 1976. The precise instalments to be applied will be determined in due course, but I mention, for purposes of illustration, that the rise in the takehome pay of a wage-earner with a dependent wife and two children, and earning between $ 100 and $ 1 50 per week, will be well over $5 per week. There will be small rises- generally of less than $1 per week- in the PAYE instalment deductions of some taxpayers without dependants.

The total estimated cost to revenue of the scheme in 1975-76 if $395m but, of this $365m is attributable to the more accurate PAYE deductions which the new arrangements will permit.

Property Income Surcharge

It is proposed to abolish the property income surcharge with effect from this income year. There will be no cost to revenue in 1975-76; the cost in a full year will be $25m.

page 64

BUDGET OUTCOME

In aggregate, Budget outlays are estimated to increase in 1975-76 by $4,084m or 22.9 per cent to$21,915m.

Receipts are estimated to increase by $3, 852m or 25 .2 per cent to $ 1 9, 1 1 7m.

The estimated deficit is thus $2,798m and the domestic deficit $2,068m.

page 64

THE POST-BUDGET ECONOMIC OUTLOOK

Given the budgetary decisions we have made, what is the economic outlook for the period ahead?

Some indications are provided in Statement No. 2 attached; here I pick up the key points.

Reflecting our policy decisions, government spending at all levels will show only modest real growth.

With the exception of business investment expenditure, which remains the weakest area of prospective demand, other components of domestic spending should show a strengthening trend and prospects for exports are also reasonably good. Imports have been quite subdued but will probably pick up during the year.

In recent months, consistent with the need to avoid sudden and disruptive changes in the monetary aggregates, the Reserve Bank has acted to gradually restrain the growth in bank lending and liquidity. Nonetheless the liquidity of the banking system should be sufficient to meet the basic immediate needs of the economy for finance without being fully accommodating to inflation.

In this Budget fiscal policy has been brought into better balance with monetary policy; both have now appropriately shifted from earlier strong stimulus to postures of moderation.

Against this background, real Gross Domestic Product is forecast to increase by about 5 per cent in 1975-76, after falling by 2 per cent in 1974-75. Prospects for employment should improve, but the improvement is likely to be gradual.

The course charted has its risks and the possibility of temporary reverses cannot be ruled out. Our commitment to what I earlier called a middle way between the two extremes makes that inevitable. What I do say is that, if there is an equal commitment in the community to play its part in steering the economy back to a firmer footing, we shall be able to overcome any such temporary problems.

On the matter of prices, the increased duties on beer, tobacco and potable spirits will increase prices as stocks are worked off. There will also be price increases, which cannot be calculated with precision, resulting from the passing on of the crude petroleum levy into the prices of motor spirit and other products. The increased postal and telephone charges to come into operation from 1 September next will also add a little to the CPI in the December quarter.

The Government is fully aware that, in itself, the effect on prices is unwelcome. What were the alternatives?

One alternative would have been to let the deficit rise even further. That would have been more inflationary and would have thrown an undue burden onto monetary policy.

Another alternative would have been to refrain both from raising these indirect taxes and from reducing company and personal income taxes.

We considered that course equally untenable.

In theory, another alternative would have been to cut our expenditures by a further $500m or $600m. We examined that possibility but concluded that it was impracticable.

I can only say that I hope that those who suggest the contrary will bring forward specific suggestions as to where we could have reined in expenditures even more stringently than we have.

In drawing attention to these price effects, I add that it is the Government’s firm view that, for the purposes of wage indexation, increases in prices resulting from tax measures of the sort that I have announced should be discounted. It would be self-defeating if the system of wage indexation were to attempt to insulate the community from tax measures designed to redistribute resources for the benefit of the community in the form of improved public facilities in fields such as education, health, welfare, personal benefits, urban improvement and so on. These improvements must be seen as a real improvement in people’s living standards and are a non-money form of addition to their incomes.

In its submissions in the recent wage indexation hearings before the Arbitration Commission the Government foreshadowed the likelihood that it would make submissions on this matter in future quarterly hearings.

Notwithstanding these direct price effects of the indirect tax measures, we look for a continuing downward shift in the underlying rate of inflation during 1975-76. It can hardly be more than a slow winding down within that timeframe; but our time-frame must extend beyond the immediate confines of this financial year. 1975-76 is therefore seen as a year of consolidation. Economic growth will only be restored by way of gradual policies firmly grounded upon an effective anti-inflationary foundation.

page 65

CONCLUSION

In this Budget the Government has endeavoured to give a lead to the community.

If inflation is to be curbed there are no soft options- only a choice between more or less difficult ones.

For our part, our hope is that with a community appreciation of the need for restraint, we can make a real start on getting inflation under control and further raising living standards for everybody.

I commend the Budget to Honourable Members.

Debate (on motion by Mr Malcolm Fraser) adjourned.

The following table provides details of the major components of estimated domestic outlays in 1975-76 compared with 1974-75. A comprehensive account of the economic setting for the 1975-76 Budget and of the post-Budget outlook for the economy is presented in Statement No. 2. {:#subdebate-65-0} #### Functional Classification of Budget Outlays A detailed account of estimated Budget outlays in 1975-76, classified by function, together with comparable figures for each of the past two years, is presented in Statement No. 3. The summary table below shows Budget outlays in 1974-75 and estimated outlays in 1975-76 classified according to the main functional headings. The major features are: o with one exception, the estimated increases in 1975-76 are all very much smaller than in 1974-75; *o* the more than doubling of outlays for health purposes ($1,494 million or 116 per cent) reflects in the main the additional costs associated with the introduction of Medibank, and very large increases in the provision of funds to meet commitments under the Hospitals Development Program and the Community Health Program; o the rise of $1,069 million or- 29 per cent in outlays for social security and welfare reflects the full-year effects of the large rise in pension and benefit rates in May 1975, the estimated effects of increasing pensions and other social welfare benefits in 1975-76 in line with movements in the Consumer Price Index, and large increases in expenditure under a number of programs, including the RED Scheme, aged persons accommodation and assistance for handicapped children; © the decrease of $69 million or 10 per cent in 1975-76 outlays for housing stems largely from the fact that in 1974-75 a special advance of $150 million was provided to the savings banks for lending for housing, of which $120 million was drawn in 1974-75, leaving only $30 million to be drawn in 1975-76; and o the decrease of . $235 million or 10 per cent in outlays on economic services reflects, among other things, an estimated reduction of some $100 million in the call on the Budget by the Postal and Telecommunications Commissions, a substantial decline in the estimated requirement for assistance to the wool industry, and the repayment to the Consolidated Revenue Fund of most of the 1974-75 advance to the former Petroleum and Minerals Authority. These decreases are only partly offset by increases in the estimates for roads grants, advances to the Australian National Railways, assistance to the beef industry and employment training schemes. A table showing a cross-classification of estimated Budget outlays in 1975-76 by function and economic type is presented below. {:#subdebate-65-1} #### Budget Receipts On the basis of existing rates of taxes and other charges, total receipts in 1975-76 were estimated to amount to $18,910 million, an increase of 24 per cent over actual receipts in 1974-75. After allowance for the net effect in 1975-76 of the revenue measures announced in the Budget Speech, total receipts in the year are estimated to amount to $19,117 million, an increase of 25 per cent compared with 1974-75. Details of the receipts estimates for 1975-76, including the impact of the new measures on receipts in . 1975-76 and in a full year, are presented in Statement No. 4. {:#subdebate-65-2} #### Historical Data Historical data on Budget transactions are presented in Statements Nos. 5 and 6. Statement No. 5 provides a detailed account of the Budget outcome in 1974-75, while Statement No. 6 presents Budget data in both functional and national accounts form for the period 1965-66 to 1975-76. An Appendix to the Budget Statements describes the basis of the functional classification of Budget outlays and notes changes in classification which have been adopted since this classification was introduced in the 1973-74 Budget. {: .page-start } page 72 {:#debate-66} ### STATEMENT No. 2 - .THE BUDGET AMD THE ECONOMY This Statement sets out the economic context in which the Budget has been framed and provides an assessment of economic prospects for 1975-76 as they now appear. Review of Economic Developments in 1974-75 {:#subdebate-66-0} #### Background Developments in the Australian economy and associated policies in 1974-75 need to be seen against the backdrop of the events of the immediately preceding years, both at home and abroad. 1974 saw a severe cyclical downswing in most industrialised countries. The degree of coincidence of the cycle across countries was unusual and, via trade and other international linkages, helped to intensify the recession. In the same period, the price performances of most countries deteriorated further with inflation rates reaching record heights. This situation was aggravated by the significant cost-inflationary and demandcontractionary effects imparted by the large abrupt increases in oil prices in 1973-74. In the face of escalating inflation rates (and in some cases balance of payments difficulties), most major countries, were reluctant to use demand management policies to try to offset the developing recession in its early stages. Australia had been comparatively insulated from the oil price rises; and the downturn in world activity also reflected in only muted fashion in demand for Australian exports. Of more significance to domestic developments was the surge in imports which got under way in 1974, reflecting orders placed when demand was buoyant, and which ensued with the relaxation of global capacity constraints. In Australia the year 1973-74 had been one in which the labour market was very tight and pressures on resources acute. Many goods were in short supply. These conditions had their origins in an earlier world boom in commodity prices and induced domestic wage responses; large balance of payments surpluses; budgetary policies primarily concerned with increasing the relative command over resources by the public sector; excessive growth in the monetary aggregates in the early stages of the expansion; a build-up of demand pressures and, consequently, wage-price pressures. A variety of anti-inflationary policy measures were taken during 1973-74. With fiscal options constrained by other objectives, reliance was placed on monetary and external instruments to a much greater extent than in the past and on the operation of the Prices Justification Tribunal. Mid-1974 proved a turning point. As 1974-75 unfolded, aggregate output declined very sharply; for the year as a whole consumer prices rose by almost 17 per cent and the unemployment rate reached a peak of almost 5 per cent. Stimulatory policy responses were quick and substantial. As a result the downturn, although pronounced, now shows signs of reversal. {:#subdebate-66-1} #### Activity and Employment The course of economic activity in 1974-75 falls into two phases corresponding to the two (half-years: a sharp downturn in the first half followed by the beginnings of a recovery in the second. The following commentary conforms to this pattern, drawing upon the accompanying charts which show half-yearly movements. Since the economy is an interrelated whole, starting the discussion with developments in real activity, though conventional, is to some extent arbitrary. During the first half of 1974 it became increasingly apparent that excess demand had peaked. As the then Treasurer said in the House on 23 July 1974, "The boom, perhaps, is already on the wane'. On the other hand it was equally clear that inflationary expectations were intensifying. Activity weakened dramatically in the opening months of 1974-75 with consequential effects in the labour market. The lift in unemployment that occurred was considerably larger than would normally be associated with the turn-around in domestic demand. This development seems principally attributable to the following factors: o The volume of money dropped sharply in mid-1974 following a restrictive domestic monetary policy stance and a sizeable outflow of funds on external account. (A more detailed discussion of monetary developments appears below.) o Structural adjustments in demand which were creating specific strains on the supply side. o An 'overhang' of imports ordered in more buoyant times which, with the easing of foreign capacity constraints, significantly added to supplies in the June and September quarters. With liquidity tight and short-term interest rates temporarily high, stock-holding could not be financed easily. o The wage explosion which, in the face of weakening demand, financial tightness, heightened import competition and administrative restraint on the ability to recoup cost increases in prices, caused a very sharp squeeze on profits. o General uncertainty in the face of continued inflation. o A greater tendency for 'working wives' to register with the CES on becoming unemployed than was the case in the past. It was the concurrence of these influences, not the uniqueness of any one of them, that intensified the increase in unemployment. It should be clear, in the light of the rapid 'turn-over' of wage negotiations that was occurring, that the removal of any or all of the policy constraints applied in that period would have allowed the wage explosion to run even further and more fully. Examining 1974 in more detail, it is evident from Chart 1 that the growth of *total final expenditure* (panel f) was little different in the two halves of the calendar year. In the second half, *private consumption expenditure* (panel a) showed little growth, partly because of the inroads into disposable income generated by the progressive tax scale, and partly because of the influence of tight financial conditions. *Private investment* (panels b and c) also turned down - earlier in the cycle than is normally the case - again partly because of the availability and cost of finance but, more importantly, because of the effects on confidence from the squeeze on profits conjoined with inflation. Slackening private sector expenditure was partly offset by a sharp rise in *government expenditure* (panel d) and by a resurgence of *exports* (panel e) which occurred in spite of the deteriorating world economic outlook. Although total final expenditure held up rather well during 1974, product growth fell away sharply. *Stock accumulation* (panel g), largely involuntary, remained positive but in the first half of 1974-75, made almost no contribution to growth. Growth in *imports* (panel h) more than satisfied the sluggish aggregate demand and *domestic product* fell accordingly (panel i). Private sector *employment* fell sharply in the latter part of 1974, the manufacturing sector being particularly hard hit. Rapid growth in government employment provided some offset but seasonally adjusted registered *unemployment* climbed to 3.9 per cent by the end of the calendar year. As unemployment increased, its relief was accorded top policy priority. Stimulatory measures were initiated as early as the September quarter and continued through to the March quarter of 1975. (A comprehensive list may be found in the Calendar of Economic Events in quarterly Treasury Information Bulletins.) External, fiscal, monetary and employment policy measures were taken, the more important being: o *External measures:* Devaluation of the $A by 12 per cent in September 1974; relaxation and then suspension of the Variable Deposit Requirement provision and removal of the overseas borrowing embargo beyond 6 months; and imposition of quotas and other restrictions on imports in certain sensitive areas where unemployment considerations were overriding. o *Fiscal measures:* Substantial cuts in personal income tax; reduction in company tax rates and introduction of accelerated depreciation allowances; very substantial additions to outlays, including significantly increased payments to the States and an advance of $150 million to banks for on-lending for housing; and temporary reductions in sales tax on motor vehicles. The 1974-75 Australian Government Budget originally allowed for an increase in outlays of 32 per cent and a deficit of $570 million. Outlays in fact increased by 46 per cent and the actual deficit was $2,567 million. o *Monetary measures* (in addition to the monetary effects of the external and fiscal measures mentioned above): The SRD ratio of the major trading banks was reduced progressively from 9 per cent to 3 per cent (a record low ratio); a special drawingfacility was created by the Reserve Bank to support bank liquidity; short-term official interest rates were substantially reduced; and regulations governing savings bank investments were amended to encourage lending for housing. o *Employment policy measures:* Specific schemes to create employment opportunities including the Regional Employment Development Scheme, special employment grants to the States, and greatly expanded subsidies for apprenticeship training. Largely in response to these policies, *total final expenditure* rose sharply in the second half of the financial year (see Chart 1, panel f). *Government expenditure* (panel d) and *exports* (panel e) continued to grow strongly and the first signs of recovery in private sector demand appeared with a sharp jump in retail sales in January. Reflecting disposable incomes that had been boosted by the temporary doubling-up, from 1 January 1975, of income tax rate reductions, and the sales tax cut on motor vehicles, *consumer spending* (panel a) grew at above average rates throughout the second half of the financial year. Lending for housing by the major institutions increased rapidly in the December quarter and, in total, continued to grow throughout the March and June quarters. Although an abnormally large part of this lending was applied towards the purchase of previously occupied dwellings, commencements of new dwellings did pick up somewhat in the March quarter and, by the June quarter, overall *dwelling activity* had begun to rise again. *Other private investment* (panel c) continued to fall. The upsurge in final expenditure was accompanied by a sharp fall in *imports* (panel h) and an equally sharp run-down in *stocks* (panel g). Notwithstanding a net contribution from these non-production sources of supply, aggregate output had begun to respond by the June quarter and, for the half-year, registered a moderate increase. The prominent role in the cyclical adjustment process played by movements in inventories and imports (illustrated in Chart 1) has something of a counterpart in productivity (average output per worker) changes. Just as those former movements acted to buffer production against fluctuations in domestic sales, short-run productivity changes partly cushioned the effect on employment of swings in output. In other words, the improvement in productivity allowed production to increase at an appreciably faster rate than employment. Chart 2 provides the picture. Although *employment* (panel a) declined throughout the first half of 1974-75, it remained a little higher on average than in the previous half-year. Accordingly, a sharp fall in *product* (panel c) was largely reflected in an even sharper drop in *productivity* (panel b) - a development that had already begun in the previous halfyear. As product began to recover in the second half of the financial year, most of the adjustment was again borne by productivity growth, with employment continuing to decline. Seasonally adjusted registered *unemployment* rose further in the opening months of 1975, to 4.7 per cent in April, but by mid-year seemed to have reached a plateau. Specific public employment-creating schemes contributed significantly to this levelling. {:#subdebate-66-2} #### Balance of Payments For the financial year 1974-75 there was a payments deficit of $463 million, comprised of a deficit on current account of $1,081 million and a capital account (including balancing item) surplus of $618 million. At the close of the year international reserves stood at $3.5 billion. The external account, and its influence on the domestic economy, altered radically through the year (see Table 1). After several earlier months of deficit, the *overall payments position* moved sharply into a record deficit of $585 million in the September quarter as the import boom peaked. In the following months the payments position recovered and for the second half of 1974-75 was in overall surplus. During the year world trading conditions became progressively more difficult. The level of economic activity in a number of major countries declined, with particularly sharp falls in industrial production. The overall volume of world trade fell away. Despite these circumstances, the value of Australian *export receipts* expanded through the period - chiefly due to price increases but for 1974-75 as a whole, volumes rose by around 5 per cent. This performance reflected very strong growth in a few products - wheat, sugar, coal, iron ore - while markets for many other products weakened. Bottlenecks in the supply of traded goods were removed with the easing of demand overseas early in calendar 1974. In consequence, despite weaker internal demand, the Australian market experienced an unprecedented inflow of *imports,* building up extremely rapidly in the June and September quarters of 1974. By the end of the September quarter this belated response to earlier excess domestic demand conditions was working itself out. Lower internal demand, together with the September devaluation and, to some extent, import controls, produced a dramatic falling away in imports; by the June quarter import volume had declined by about 30 per cent from the: September peak. *Private capital movements* were for the most part subdued and foreign investment of an equity nature remained particularly weak in 1974-75. There was some renewed interest in overseas borrowings following the September devaluation and the relaxation of the capital controls but, despite a period of relatively low interest rates overseas, net apparent private capital inflow remained well below the average experience of earlier years. {:#subdebate-66-3} #### Monetary Conditions Table 2 sets out the main factors underlying quarterly movements in the volume of money (M3) over the past three financial years. Quarterly changes in the volume of money (seasonally adjusted) are shown in Chart 3. In 1972-73 the *volume of money* broadly defined (M3) increased by 26 per cent. Reinforcing measures affecting the external account late in 1972, action was taken progressively during 1973, including increases in interest rates and the Statutory Reserve Deposit ratio applying to trading banks, to curb the growth of the monetary aggregates. Even so, the volume of money continued to grow rapidly and in September 1973 Government security yields were sharply increased in a move by the authorities to control financial conditions by means of open market operations. At this time the $A was revalued by a further 5 per cent. These measures rapidly influenced the broad monetary aggregates. The volume of money (M3), which had grown at a seasonally adjusted annual rate of 23 per cent in the September quarter 1973, grew by 12 per cent in the December quarter. The continuing effects of the measures taken during 1973, and the greater than normal run-down in private sector holdings of LGS assets in the first half of 1974, resulted in a substantial tightening in financial conditions. In the June quarter a number of trading banks borrowed from the Reserve Bank in order to hold their LGS ratios to the conventional minimum. *Interest rates* continued to move up toward the end of 1973-74 and, with trading banks bidding competitively for funds through the issue of large denomination certificates of deposit, both private and official short-term rates increased sharply; an inverse yield structure emerged. As can be seen from Table 2 and Chart 3, increases in *primary liquidity* (private sector LGS assets) continued to show more than seasonally normal declines as 1974 progressed. For 1973-74 as a whole, primary liquidity showed no change compared with increases of $1,644 million in 1972-73 and $1,440 million in 1971-72. Despite the tightening financial conditions during the year, M3 increased by more than 14 per cent over the year to June 1974. In the opening quarter of the new financial year a substantial balance of payments deficit intensified the tightening conditions and, in combination with a fall in advances outstanding of the major trading banks, culminated in a seasonally adjusted fall in the volume of money, broadly defined, in that quarter (see Chart 3). New lending by most financial institutions fell away to very low levels. In recognition of the need to moderate the tightness in financial markets the *SRD ratio* was lowered in eight stages from 9 per cent to 3 per cent between June and October 1974, entailing the release of approximately $700 million to the major trading banks. Additional measures included reductions in yields on short-term Government securities and freer access to foreign funds by suspension of the Variable Deposit Requirement scheme and contraction of the embargo period for short-term overseas borrowings from 2 years to 6 months. In September the $A was devalued by 12 per cent. A number of prominent companies extensively involved in property development failed during the period of tightness and investor activity became cautious. As a consequence some financial institutions experienced difficulties with net funds flows in the early weeks of October 1974. The fiscal and monetary measures taken during 1974-75, along with the turnaround in the balance of payments, have substantially altered the monetary situation and outlook. At the time of the Budget in September 1974 the overall deficit for 1974-75 was estimated at S570 million; a deficit of 82,567 million eventuated. Mainly as a result of the slower tempo of domestic economic activity and the devaluation of September 1974, the balance of payments, which was sizeably in deficit in the second half of 1974, has now moved into surplus. *Primary liquidity* grew by a record $2,250 million in 1974-75 and the trading banks in particular have been in a very liquid position. In June 1975 the *LGS ratio* of the major trading banks was 26.2 per cent compared with 19.2 per cent in June 1974; in seasonally adjusted terms the ratio was 29.5 per cent in June 1975 (see also Chart 3). The trading banks were directed in March not to expand their rates of new lending further and these directives were reiterated in April. The directives were reinforced early in 1975-76 when the SRD ratio increased in two steps to 4.6 per cent and banks prepaid the special drawing facility of last Otcober. In June 1974 usage of overdraft limits was 73 per cent; in June 1975 the ratio had fallen to 65 per cent. With an easier liquidity situation, official and private sector short-term rates fell in the early part of 1975. Most banks reduced their deposit and lending rates but there has been no corresponding easing in rates offered on longer-term official or private sector securities. In fact, in July 1975 yields on longer-term Government securities rose from 9.5 per cent to 10 per cent bringing them more into line with private sector yields. The funds position of most *non-bank financial institutions* is now relatively easy. The inflow of funds to building societies has recovered strongly in recent months after the setback late last year and societies have steadily expanded their lending. Flows of funds into finance companies have increased but, reflecting a strong liquidity preference by investors, have been mainly short-term in nature. Lending by other financiers remains generally subdued. Over the year to June 1975, M3 increased by 15 per cent. The annual figure is weighed down by the negative September quarter movement. After seasonal adjustment, the volume of money (M3) grew at an annual rate of 22 per cent in the December quarter, 27 per cent in the March quarter and 17 per cent in the June quarter of 1974-75. This last figure may be somewhat understated because of technical seasonal adjustment problems associated with the changed timing for company tax payments so that the underlying rate of increase probably remains in excess of 20 per cent. {:#subdebate-66-4} #### Prices and Incomes Increases in earnings and prices, by half yearly periods, are shown in Chart 4. Chart 5 displays movements in wages and profits per unit of non-farm product. Chart 6 illustrates related movements in the shares of wages and profits (gross operating surplus) in non-farm product at factor cost. In the wake of a period of excess demand pressure and build-up of inflationary expectations, a number of exceptionally large wage increases occurred in the closing stages of 1973-74. This development intensified in the opening months of 1974-75; not only were claims made for successively higher amounts but awards were re-negotiated more frequently. Both economic and administrative constraints operated to limit the full flow-on of these cost increases into prices. *Unit wage costs* (Chart 5, panel a) rose even more rapidly than male *average weekly earnings* (Chart 4, panel a) throughout calendar 1974, a reflection of the more rapid growth of female award rates and a concurrent fall in productivity. Partly as a consequence *unit profits* (Chart 5, panel b) declined and, with the volume of output also falling, total profits dropped even more sharply. Current data indicate some recovery in both unit and total profits in the second half of 1974-75 leading to a levelling out in the *profit share* (Chart 6) . Even though weakening demand, including that for labour, and financial tightness in the first half of 1974-75 constrained the ability and willingness of employers to accede to further wage claims, the rate of growth of earnings remained relatively high. The second half of the year did, however, see something of a lull in the rate of award increases. As well as reflecting labour market conditions this was due to the timing of major award cases. The reduction in personal income tax rates, announced in November 1974 and made, in part, as an explicit element in the wages policy of the time, was also a contributing factor. The 1975 National Wage Decision, which introduced a form of conditional wage indexation, represented an important development in the process of wage determination in Australia. Guidelines covering non-indexation increases were also laid down by the Commission in its Decision. The *Consumer Price Index* (Chart 4, panel b) increased by 16.7 per cent in 1974-75, compared with 12.9 per cent in the previous year and 6.7 per cent in 1972-73. It is now apparent from the quarterly figures that the underlying trend *through* 1974-75 was one of slight moderation. Rates of increase of both wages and prices remain high, by comparison either with Australia's past history or with current rates abroad. {:#subdebate-66-5} #### The Economic Outlook for 1975-76 {:#subdebate-66-6} #### Pre-Budget Prospects Pulling together the several strands of economic developments, as canvassed above, the situation as Budget policies were being formulated was, briefly, that: the recovery in some major components of private sector spending was beginning to feed through into activity and rises in employment were in prospect; there had been an apparent steadying in the rate of increase in prices and perhaps some decline in the underlying rate of increase in wages; the external account posed no immediate problems; and some initial steps had been taken to restrain the previously strongly stimulatory rate of monetary expansion. As to policy objectives, there was an obvious need to ensure that there was a basis for continued recovery but at a pace that would not lead, once again, to the emergence of demand pressures and, more importantly, to the intensification of inflationary expectations. Against this background, prospects for the Budget were that, on the basis of unchanged tax rates and the expenditure proposals that had been advanced, the projected deficit was of the order of $5,000 million. That was without making any allowances for desired reductions in both personal and company income taxes. The kind of economic situation that would have emerged from accepting a deficit of the magnitude initially projected is one which would be quite outside the range of Australia's previous experience. The following observations could therefore be significantly wrong in detail, particularly in chronology. None the less, and having some regard to experience elsewhere, the general implications seemed clear enough. Because of lags in the functioning of the economic system, such a Budget would have had little effect on the statistical performance of the economy over the rest of this calendar year. None the less, there would have been a pervasive psychological shock, leading to heightened inflationary expectations, with the most serious long-term consequences for the economy. The present depression of business investment would have become even more pronounced; employers would have stepped up their search for survival by yet further contraction. Before long, the economic recovery would have faltered and moved strongly into reverse. Private investment would have become even more depressed because there would have been a strong expectation that the rate of inflation, which presently is showing tentative signs of coming under control, would have accelerated. If such an expectation had gained ground it would have tended to become self-fulfilling - in particular, it would almost certainly have up-ended the whole basis of wage indexation. Furthermore, another large lift in the share of activity accounted for by government would have further depressed business and community confidence. Continued growth in the relative size of the government sector can only be at the expense of wage and salary earners (taxpayers) or businesses or both. In the downturn of 1974-75 some increase in the relative size of the government sector was appropriate. With recovery in the private sector beginning, a *further* rapid shift of resources to the public sector would have intensified wage demands and inflation, further squeezed profits, further depressed the propensity to invest in the private sector and increased the probability of business failures. A deficit of the projected magnitude would also have resulted in an excessive increment to liquidity. Initially, this might merely have piled up in idle balances; but even with little secondary credit expansion through the banking system, there would probably have been growth in the volume of money of 30 per cent or more during 1976. For a time, this might well have strengthened the statistical aggregates but any such development would before long have seen rates of price increase significantly faster than currently being experienced. Such a deficit would have implied an unprecedently large injection of liquidity into an economy which was already picking up, with financial conditions still easy, and when the money supply was already rapidly expanding. It would have laid a monetary foundation for inflation even larger than that which built up in 1972 and 1973 (at that time principally from external sources), and to which many of the subsequent difficulties of 1973 and 1974 can be traced. The foregoing was thus a prospect of an unusually short-lived recovery. Unlike the former policy paradigm - in which some reduction in unemployment could always be purchased at the cost of some more inflation - it seemed clear that if inflation took off from its present high base it would almost certainly lead before long to even greater unemployment. {:#subdebate-66-7} #### Post-Budget Projections Given the Budget decisions, what is now the economic outlook for the period ahead? The unprecedented concatenation of still very high rates of inflation and very high levels of unemployment makes the economic prospects for 1975-76 extremely difficult to foresee. It would hardly be surprising then, if the broad picture outlined here were to prove, in retrospect, an inaccurate description of 1975-76. As well as the necessity to make assumptions about many factors beyond the control of the Government and which, in the event, will not turn out as assumed, the accuracy of the picture also hinges on two intangible elements having a critical bearing on economic conditions over the next year to eighteen months. The first of these intangibles is *inflationary expectations.* The underlying rate of inflation is now slightly lower than it was a year ago, to a considerable extent because of the easing in the rate of increase of wages and salaries. The effect this is having on inflationary expectations - a crucial determinant of what happens to future prices - is very uncertain. Measures of these expectations are crude and the forces impinging on their formation are many and varied. The second, but related, intangible factor is *consumer and business confidence.* Business investment is possibly the most unpredictable component of final demand. There are broad relationships between investment and the actual and expected level of economic activity in relation to capacity, the cost of capital, profitability and liquidity conditions, but at any particular point of time, investment is not tightly related to these tangible factors. Investment decisions are also influenced by the state of mind of decision makers - their overall feelings of confidence, their 'enterpreneurial spirits' - which may reflect a variey of other forces. To a lesser extent similar feelings affect consumers, especially in relation to major discretionary items of expenditure such as large durables. The outlook presented here is also based on a number of more specific assumptions, any or all of which may turn out differently. The more important assumptions are: o The general stance of monetary policy will remain such that the liquidity of the banking system is sufficient to meet the basic immediate needs of the economy for finance without being fully accommodating to inflationary demands. o Apart from the Budget proposals themselves, there will be no new fiscal measures during 1975-76. o During that period, there will be no significant change in Australia's external economic policies; meanwhile, the recovery just beginning in the economies of several of our major trading partners will progress at a moderate pace. e Indexation of award wages will continue throughout the period and other award increases will reflect restraint. c Seasonal conditions will be such as to produce about the same growth in aggregate farm production in 1975-76 as in 1974-75. On the basis of the foregoing, *private consumption expenditure* seems set to grow moderately during the rest of 1975 and 1976. Increases might be quite low at first due to the influence of the reversion, from 1 July, to the schedule of PA YE deductions appropriate to the 1974-75 rate scale, the indirect tax measures contained in this Budget and the continued unwinding of the earlier temporary sales tax cut on motor vehicles. *Investment in dwellings* is recovering at present and financial flows imply continuing growth. The recovery rate envisaged is broadly appropriate given continuing concern with the re-emergence of sectoral capacity constraints and their familiar consequences. Available anticipations and survey data suggest that *non-residential investment,* which is the weakest area of demand, will continue , declining at least until mid-1976. For instance, there are continuing reports of surplus office floor space in Melbourne and Sydney. A subsequent pick-up is in part dependent upon some dampening of inflationary expectations and recovery of confidence and profits in the business sector. If investment does not start to grow again during 1976 overall recovery beyond then would be very unbalanced. Specific capacity constraints might quickly emerge with attendant price pressures and import spill-over. Reflecting policy decisions taken in this Budget, *expenditure on final goods and services* by all levels cf *government* will be only slightly higher (in real terms) in 1975-76 than in 1974-75. Indeed, this year-on-year comparison reflects growth which has already taken place; no growth *during* 1975-76 is contemplated. *Inventories* have been run down at a rapid rate recently. More moderate decumulation is expected to continue until towards the end of 1975, with accumulation resuming in 1976. The present slowing in the rate of decumulation means that inventory investment is already contributing to growth in product. Prospective developments in the balance of payments depend importantly on the relative speed and strength of the respective recoveries in world economic activity and the domestic economy. *Exports* are forecast to continue growing in 1975-76. Although *imports* in volume terms seem likely to begin to grow again in the near future, this follows a very steep decline so that, for 1975-76 as a whole, their level will probably still be somewhat below that of 1974-75. At this stage, it seems plausible to think in terms of a current account not far from balance with some continued net inflow of private capital. Such a return to relative equilibrium in the external accounts would be influenced by, and contingent upon, the greater stability being forecast both overseas and in the Australian economy. With relative equilibrium in external transactions the major influence on basic *liquidity conditions* would come from the Budget deficit. This would provide a sizeable increment but, with bank lending under a degree of restraint, growth in the monetary aggregates should not be fully accommodating to inflation at current rates. On the basis of the foregoing influences, *gross non-farm product* is expected to grow by about 5 per cent for 1975-76 as a whole. This would imply stronger growth rates over the course of the year, but compared with other post-war experience does not represent a particularly strong recovery phase. This fact reflects, in particular, the state of private investment and the budgetary cut-back in the rate of growth of government outlays. Product growth of this order would probably be associated with an increase in *employment* of about 1 per cent in 1975-76 and a sizeable recovery in *productivity.* Given the likely growth in the labour force, the picture for *unemployment* consistent with these developments is one of slow decline from the present high levels. However, the uncertainties involved in the overall picture are such that the possibility of some unevenness in trend cannot be ruled out. Wage indexation, provided it is honoured in practice, should contribute towards a rationalization of wage claims. Other factors, including inflationary expectations, will also influence wage developments. The extent of any possible amelioration in wage demands as a result of the revisions to personal tax scales proposed in the Budget is also relevant; in this respect it should be noted that the consequent revisions to the PAYE schedules cannot come into effect until January 1976. *Average weekly earnings* are expected to grow more slowly in 1975-76 than in 1974-75, when the rate of increase was 26 per cent. It would be pretentious to attempt to be too precise, given the unknowns, but an outcome 4-6 percentage points below 1974-75 is not unlikely. An increase in the *Consumer Price Index* somewhat less than in 1974-75, and relatively greater reductions in more broadly based price indexes, would be consistent with this assessment of earnings prospects and the other elements of the overall outlook. There is a possibility, along the lines noted earlier, that if inflationary expectations are being revised downwards the performance of wages and prices will reflect what would now appear an optimistic assessment. In this case the tendency would be for the Budget deficit to be greater in the outcome because tax receipts would probably be reduced by more than expenditures, though it is not possible to quantify this precisely in terms of so much increase in the deficit for each one per cent reduction in the rate of increase in prices. Of course, a greater deficit in those circumstances (i.e. one resulting from a greater than anticipated decline in inflationary pressures) would not carry the same policy implications as it would in other circumstances. Anticipated productivity gains are likely to contribute to fairly strong growth in *profits* even though overall prices are not expected to increase by as much as wages. The share of total income accounted for by profits, although probably higher than last year, is still likely to fall short of normal, long-term levels. {: .page-start } page 89 {:#debate-67} ### STATEMENT No. 3- ESTIMATES OF OUTLAYS, 1975-76 This Statement presents detailed estimates of Budget outlays in 1975-76, classified according to their primary function or purpose. Total Budget outlays in 1975-76 are estimated at $21,915 million, an increase of $4,084 million or 22.9 per cent over actual outlays in 1974-75. Estimated Budget outlays in 1975-76, under their main functional headings, are shown in the summary table below, together with figures of actual outlays in the preceding two years. Outlays for defence in 1975-76 are estimated at $1,800.1 million, an increase of 10.6 per cent over 1974-75. Estimated outlays for defence in 1975-76 represent 8.2 per cent of estimated total Budget outlays; the corresponding figure in 1974-75 was 9.1 per cent. {:#subdebate-67-0} #### Manpower Costs Provision has been made for an increase of S3 1.7 million in manpower costs in 1975-76. The main reasons for the increase are the full-year effects of awards and determinations made in 1974-75 and a rise in the average number of service personnel (excluding Papua New Guineans). These increases will be offset in part by the assumption of financial responsibility by Papua New Guinea for its indigenous service personnel, some reduction in strengths of civilian staffs, and lower Defence Forces Retirement and Death Benefits payments which in 1974-75 contained a non-recurring refund of contributions amounting to S6.8 million. Manpower costs are estimated to account for 55 per cent of total defence outlays in 1975-76, compared with 59 per cent of actual defence outlays in 1974-75. {:#subdebate-67-1} #### Defence Equipment and Stores Outlays on defence equipment and stores are intended to ensure that operational equipment (ships, aircraft, etc.) is adequate to meet likely contingencies. Outlays on such equipment in 1975-76 are estimated at $168.5 million, an increase of $81.7 million, and relate mainly to projects already committed, including Oberon Submarines, Light Destroyers, an Oceanographic Ship and ten Sea King Helicopters for the Navy, Light Observation Helicopters, Fire Support Vehicles and Tanks for the Army and eight Long Range Maritime Patrol Aircraft for the RAAF. Provision has been made also for initial payments on new major equipment projects and for other equipment, details of which will be announced by the Minister. Expenditure on supporting equipment in 1975-76 is estimated at $145.9 million, an increase of $15.7 million over 1974-75. Outlays on repairs and maintenance are expected to increase by $9.1 million. {:#subdebate-67-2} #### Defence Facilities Expenditure under this heading is to provide and maintain capital facilities including adequate living and working accommodation for personnel. Advances to the States for the provision of housing for servicemen and their families are estimated to total $40 million, $13.2 million more than the amount spent in 1974-75. Other significant buildings and works items include the continuation of construction of the Naval Support Facility at Cockburn Sound (W.A.) and the upgrading of facilities at HMAS Nirimba (N.S.W.), RAAF Regents Park (N.S.W.), RAAF Amberley (Qld), the Royal Australian Transport Corps Centre, Puckapunyal (Vic), Williamstown Dockyard (Vic.) and Canungra Ground Warfare Training Centre (Qld). Expenditure on these and other projects is expected to total $77.6 million in 1975-76, $16.2 million more than in 1974-75. {:#subdebate-67-3} #### Industrial Capacity The main reasons for the expected decrease of $0.4 million for this purpose are reduced working capital and production assistance requirements for the NOMAD aircraft project, largely offset by the higher cost of maintaining reserve production capacity, due to wage increases in Government defence factories. {:#subdebate-67-4} #### Defence Science and Technology Establishments Expenditure on defence science and technology is aimed at assisting the Services to keep abreast of advances in military technology and at developing weapons systems suitable for Australia's defence needs. The estimated increase of $5.1 million to $84.7 million reflects mainly wage and other cost increases. Defence Co-operation Through defence co-operation the Government aims to help friendly countries in the region of immediate interest to Australia to strengthen their own and the region's capacity for defence. Estimated expenditure of $39.2 million in 1975-76 includes $11.3 million for continuing assistance to Indonesia, Malaysia and Singapore, at levels similar to those in past years. Military training and advisory assistance to some other countries, including Thailand and Fiji, will continue, to be provided on a small scale. New budgetary arrangements for providing financial assistance to Papua New Guinea for defence were introduced from 6 March 1975. An amount of $27.8 million is being provided for 1975-76 compared with $77.8 million last year. The decrease in defence aid to Papua New Guinea in 1975-76 reflects the substantial special assistance of $70 million given to that country in 1974-75 ($4 million in 1975-76) to facilitate the 'purchase' of defence assets. (Proceeds from the 'sale' of these assets to Papua New Guinea in 1974-75 and 1975-76 are shown under 'Recoveries and Repayments' in the table.) {:#subdebate-67-5} #### Storage and Transport Services Included in this category are removal and storage costs associated with the transfer of government employees in the defence sector and servicemen. In the past the totality of expenditure on storage and transport services was shown as a defence outlay but, with the transfer of responsibility for such services from the Department of Manufacturing Industry to the Department of Services and Property, only that expenditure attributable to the defence function is included in defence outlays. All other expenditure on this activity is now included in outlays on 'Common Services' within the function 'General Public Services'. Adjustments in respect of these changes have been made to data for earlier years to maintain comparability with the 1975-76 estimates. {:#subdebate-67-6} #### General Administrative Expenditure This broad category of expenditure covers a wide range of items including travel, office requisites, postage and telephone services, light, power and water supplies, freight and cartage, compensation payments, and medical and dental services provided by civilian authorities. {:#subdebate-67-7} #### Natural Disasters, Civil Defence and Other Included in this category are outlays on natural disasters, civil defence, war graves and various miscellaneous items. The estimated 47 per cent increase in expenditure in 1975-76 is primarily due to increased support of State Emergency Services. {:#subdebate-67-8} #### Overseas Expenditure Included in the estimated outlay of $1,800.1 million for defence in 1975-76 is provision for expenditure overseas amounting to $212.8 million, or $75.7 million more than in 1974-75. This estimate of expenditure overseas includes provision for payments in respect of Orion and other aircraft, tanks and submarines, and on maintenance of defence forces overseas; it does not include defence expenditure in Papua New Guinea or any overseas component of the remaining $11.4 million planned to be expended on defence co-operation for overseas countries. {: type="1" start="2"} 0. EDUCATION Consistent with the high priority accorded to education by the Government, there has been an extremely rapid increase in education outlays in recent years. In 1975-76 the emphasis is on the consolidation of the various improvements so far achieved, rather than on new initiatives. Total outlays on education are estimated to increase by 14.2 per cent in 1975-76 to $1,908.2 million, equivalent to 8.7 per cent of estimated total Budget outlays. {:#subdebate-67-9} #### Tertiary and Technical Education {:#subdebate-67-10} #### Universities, Colleges of Advanced Education and -Teachers Colleges In May 1975, the Universities Commission and the Commission on Advanced Education presented reports recommending programs of financial assistance for the 1976-78 triennium totalling $3,463 million compared with $2,509 million for the current 1973-75 triennium (both figures at December 1974 prices). For the reasons set out in the Budget Speech the Government has decided on an alternative program for tertiary education in the 1976 academic year which aims to consolidate improvements already achieved. This approach will involve some slowing of new capital expenditure in 1976; it also involves having the new triennium begin in 1977. Total expenditure on university education is estimated at $569.8 million in 1975-76, an increase of $17.6 million, while expenditure on colleges of advanced education and teachers colleges is estimated to increase by $11.8 million to $405.0 million. Estimated outlays in 1975-76 therefore reflect the provision of funds for programs approved for the current 1973-75 triennium (as appropriated under the *States Grants (Universities) Act* 1972-75 and the *States Grants (Advanced Education) Act* 1972-75) and for the further programs of financial assistance which have been approved by the Government in the light of their consideration of the recommendations of the Universities Commission and the Commission on Advanced Education. Grants to universities of $510.0 million and to the colleges of $364.0 million have been approved for 1975-76. The corresponding figures in 1974-75 were, respectively, $502.1 million and $360.7 million. These estimates for 1975-76 also reflect the full-year cost (approximately $55 million) of the increased academic salaries accepted by the Australian Government on the recommendation of the Academic Salaries Tribunal which took effect from October 1974. Prior to January 1974 grants were provided to the States for universities, colleges of advanced education and teachers colleges, and pre-school teachers colleges on a matching basis. When the Australian Government assumed full financial responsibility for universities and colleges the States agreed that appropriate offsets, to take account of payments that they would no longer have to make to these tertiary institutions, would be made in the general purpose funds provided by the Australian Government to the States. (Details of these offsets are provided in Chapters II and III of *Payments to or for the States and Local Government Authorities, 1974-75.)* Other initiatives introduced in this area at the beginning of 1974 include the abolition of fees in tertiary and technical education institutions and new student assistance measures. Details of the Australian Government's programs of financial assistance for previous triennia and for the current triennium (1973-75) for universities, colleges of advanced education and teachers colleges are included in Chapter IV of *Payments to or for the States and Local Government Authorities, 1975-76.* In January 1974 the Government introduced the Tertiary Education Assistance Scheme, thereby supplementing the decisions to assume full financial responsibility for tertiary education and to abolish tuition fees. This Scheme provides noncompetitive means-tested allowances to full-time non-bonded Australian students admitted to approved courses in tertiary and approved post-secondary institutions. From January 1975 living allowances under the Scheme were increased and the means test relaxed to allow for movements in salaries and wages. From November 1975 the allowances for a dependent wife and for each dependent child will be increased. The maximum benefit available under the Tertiary Education Assistance Scheme is $31 per week and approximately 62,800 university' and college students are receiving some benefits from the Scheme. The cost of the Scheme for university and college students is estimated at $76.5 million in 1975-76, an increase of $14.4 million over 1974-75. Increases in allowances payable under the Postgraduate Awards Scheme and the Pre-School Teacher Education Allowances Scheme were effective from January 1975. Under the Postgraduate Awards Scheme an allowance of $3,250 per year is paid to post-graduate students (with additional allowances for married students) and outlays under the scheme are estimated at $8.0 million in 1975-76. Outlays for the Pre-School Teacher Education Allowances Scheme are estimated at $3.6 million; the maximum allowance under the scheme is $31 per week. From 1974 the Government has undertaken to supplement the approved programs of financial assistance to universities and colleges to allow for wage, salary and other cost increases (other than academic salary increases, which are provided for by separate supplementation) above the level provided for when the original triennial programs were determined. An allowance for retrospective cost increases has been incorporated in the grants for these institutions for 1975-76 and allowance for expected further adjustments during 1975-76 has been incorporated within a total allowance of $70 million for prospective cost increases for universities, colleges and schools. {:#subdebate-67-11} #### Technical and Further Education Australian Government expenditure on technical and further education is estimated to total $101.3 million in 1975-76, compared with $70.6 million in 1974-75. Financial assistance by the Australian Government for technical and further education in 1975-76 is being provided under a program developed by the Australian Committee on Technical and Further Education for the biennium July 1974 to June 1976. A program of $100 million was approved for the two years, comprising S96.5 million for allocation to the States to enhance the quality and extend the availability of technical and further education, on the understanding that the States would not reduce the level of their own activities in this area, and $3.5 million in the Australian Capital Territory for a capital development program. In May 1975, the Australian Committee on Technical and Further Education submitted its Second Report on 'Needs in Technical and Further Education'; this Report covered the *2i* year period 1 July 1976 to 31 December 1978. For the reasons set out in the Budget Speech the Government has been unable to accept the recommended level of expenditure of $494 million at this time. Consistent with its decisions on expenditure on other levels of tertiary education in 1975-76 the Australian Government is concentrating on the consolidation of its activities in this area in the 1976 academic year. The major implications of this will be a slowing of new capital expenditure in that year and the postponement of the commencement of the first full triennium to 1977. Estimated grants for technical and further education in 1975-76 are S81 .8 million, compared with $55.0 million in 1974-75. Students attending technical colleges are eligible for similar assistance to university and college students under the Tertiary Education Assistance Scheme. The Budget provides $18.8 million in 1975-76 for these benefits, an increase of $3.4 million; about 14,200 students are expected to receive benefits. Schools, Pre-schools and Child Care Total expenditure by the Australian Government on schools, pre-schools and child care in 1975-76 is estimated at S664.9 million, an increase of $90.5 million or 15.8 per cent over 1974-75. The various schemes of financial assistance for these purposes are summarised below. (A detailed account of financial assistance for schools and pre-schools in the States is included in Chapter IV of *Payments to or for the States and Local Government Authorities, 1975-76.)* *Schools in the States* Outlays by the Australian Government on schools reflect, in the main, initiatives taken from the beginning of 1974 to provide substantially increased financial assistance to both government and non-government schools in the States on the basis of the recommendations of the Interim Committee for the Australian Schools Commission and the Schools Commission which was established in December 1973. In May 1975, the Schools Commission presented its report recommending programs of financial assistance for the 1976-78 triennium totalling $2,070 million, compared with $794 million for these purposes for the 1974-75 biennium (at December 1974 price levels). For the reasons set out in the Budget Speech, the Government has not adopted these recommendations but has provided for a continuing program with an emphasis on consolidation of improvements so far achieved. This will involve a slowing of new capital expenditure in 1976 and a deferment of the beginning of the first full triennium to 1977. The schools program includes grants for general recurrent purposes at government and non-government schools, for new and upgraded buildings, for libraries, 'disadvantaged' schools, handicapped children, innovatory projects, teacher development and, as from 1 January 1976, the education of migrant children. Grants to the States for these purposes for both government and non-government schools are estimated at $446.4 million in 1975-76, compared with $418.0 million in 1974-75. Earlier legislation in the form of the *States Grants (Schools) Act* 1972-1974, provided for capital assistance for both government and non-government primary and secondary schools in the States by way of unmatched grants over a 5-year period commencing 1 July 1973. The capital grants available in 1975-76 for government and non-government schools under the *States Grants (Schools) Act* 1972-1974 are estimated to total $52.2 million. This amount is included in the total program referred to in the previous paragraph. Two programs of special purpose assistance to the States, for secondary school libraries and science laboratories, terminated on 31 December 1974 and 30 June 1975, respectively. Provision for these purposes is now made within the Schools Commission's programs. Expenditure on these programs in 1974-75 totalled, respectively, $4.7 million and SI 1.5 million. *Schools, Pre-schools and Child Care in the Territories* Outlays by the Australian Government for schools, pre-schools and child care in the Territories are estimated to $105.6 million in 1975-76, an increase of $24.6 million or 30.6 per cent compared with actual outlays in 1974-75. Pending the establishment of the Australian Capital Territory Schools Authority, an Interim Schools Authority has been created to administer and develop the Government's pre-school, primary and secondary education systems in the Australian Capital Territory. Provision is made in the estimates for 1975-76 for initial supplies and equipment for four new government secondary colleges which will open in 1976 to cater for students entering their final two years of secondary schooling. The Australian Government also has direct responsibility for meeting educational needs in the Northern Territory. Expenditure on community schools in the Territory is estimated to increase from $23.5 million in 1974-75 to $36.2 million in 1975-76. (See also references to the education of Aboriginals in the Territory under 'Special Groups'.) The main increases are in teachers' salaries ($5.2 million) and construction of schools ($6.5 million). *Pre-schools and Child Care in the States* After considering the Reports and recommendations of the Australian Pre-Schools Committee, the Social Welfare Commission and the Priorities Review Staff on the development of pre-school and child care services, the Australian Government decided to appropriate $75 million in the 1974-75 Budget for the care and education of young children in the States. This provided for continuing commitments under the interim pre-schools program begun in 1974 and the *Child Care Act* 1972-1973, and to enable a start to be made in January 1975 on a new program for the care and education of young children. The new program involves a fully integrated approach to the needs of childhood embracing education, health and care services. An Interim Committee for the Children's Commission was established in October 1974 pending the establishment of the Children's Commission as a statutory body, to assume responsibility for the administration of existing commitments and to develop the new program. Total expenditure in 1974-75 from the S75 million provided was $44.9 million of which some $7.4 million was paid direct to local government bodies and other non-profit organisations. A further $74.0 million has been provided for the continuation of this program in 1975-76. {:#subdebate-67-12} #### Student Assistance Estimated outlays for 1975-76 include $2.9 million for the first full year of operation of the new Adult Secondary Education Assistance Scheme under which means-tested allowances are made available to adults who, subject to certain conditions, are undertaking full-time studies in the final year of the secondary school system. Allowance is also made for the continued phasing out of the Senior Secondary Scholarship Scheme, expenditure on which is estimated to fall from $6.1 million in 1974-75 to 81.2 million in 1975-76. {:#subdebate-67-13} #### Special Groups Assistance by the Australian Government for the education of special groups is estimated to increase from $65.7 million in 1974-75 to $78.4 million in 1975-76. {:#subdebate-67-14} #### Aboriginal Education Assistance is provided under the Aboriginal Secondary Grants Scheme to all full-time students of Aboriginal descent attending an approved secondary school or class. Expenditure under the Scheme is estimated to increase from $7.2 million in 1974-75 to $8.7 million in 1975-76. The Aboriginal Study Grants Scheme provides, in the main, for assistance to Aboriginal students taking courses at universities, teachers colleges and technical, business and agricultural colleges. Expenditure in 1975-76 is estimated at $1.7 million compared with $1.4 million in 1974-75. The Australian Government has direct responsibility for the education of Aboriginal children in the Northern Territory and, in accordance with its policy of preserving Aboriginal languages and cultures, has introduced a program under which Aboriginal children living in Aboriginal communities receive primary education in their own language and instruction in traditional Aboriginal arts, crafts and skills. Total outlays by the Government for Aboriginal education in the Northern Territory are estimated at $21.9 million in 1975-76, compared with $16.6 million in 1974-75. Provision of $9.1 million is made in the Budget for grants to the States and to non-government organisations in the States for Aboriginal education purposes in 1975-76. These grants will finance construction and equipping of pre-schools and primary and secondary schools. Additional expenditure will be incurred on several programs of special assistance for schools with high Aboriginal enrolments and on special courses in Aborginal studies at tertiary institutions. Total assistance for Aboriginal education under these various arrangements is estimated at $41.5 .million in 1975-76, $10.3 million or 32.9 per cent more than in 1974-75. {:#subdebate-67-15} #### Migrant Education Expenditure under the *Immigration (Education) Act* 1971-1973 on special English language instruction for child and adult migrants in 1975-76 is estimated to cost $23.6 million, compared with $21.3 million in 1974-75. Under this program the Australian Government provides special instruction to assist migrant children with English language difficulties to facilitate their participation in normal classes. Funds are provided to government and non-government school authorities for special language teaching equipment and for salaries of special teachers. Provision is made for estimated expenditure of $11.5 million on child migrant education under the Immigration (Education) Act for the six months period to 31 December 1975. From January 1976, however, the child migrant education program will be funded from the general recurrent grants program administered by the Schools Commission. Adult migrant education in the English language is conducted in special courses. Expenditure, including salary and administrative costs and living allowances for some students, is estimated at $8.7 million in 1975-76, an increase of $2.7 million over 1974-75. Provision of $3.2 million is made also for demountable classroom accommodation for child migrant classes in government and non-government schools in 1975-76, an increase of $1.3 million over 1974-75. {:#subdebate-67-16} #### Soldiers' Children Education Scheme This Scheme provides for payment of fees, fares and allowances and for provision of books and equipment for the tertiary education and training of children of ex-servicemen who died as a result of their war service or who are either totally and permanently incapacitated or blind. Allowances are paid in respect of children attending secondary schools. The cost of this Scheme in 1975-76 is estimated at $3.7 million. {:#subdebate-67-17} #### Isolated Children The Australian Government introduced, from the beginning of the 1973 school year, a scheme of allowances to assist in the education of children who, because of their geographic isolation, do not have reasonable daily access to a government school providing courses at the appropriate level. A basic boarding allowance and an additional allowance subject to a means test are paid in respect of such children living away from home to attend school. Additional assistance is available in cases of particular hardship. For isolated children who study at home by correspondence there is an allowance free of means test. The estimated cost of this scheme in 1975-76 is $9.2 million, compared with actual expenditure of $9.5 million in 1974-75. Allowance for Adjustment for Cost Escalation in Education Grants The Government has undertaken to supplement the approved programs of financial assistance to universities, colleges of advanced education and schools for cost increases above the level provided for when the programs were determined. Amounts for retrospective cost increases have been incorporated in the figures shown for grants to these institutions. In addition, an overall allowance of $70 million has been included in the estimates for prospective cost increases in the remainder of the 1975 academic year which will require supplementation during 1975-76. {:#subdebate-67-18} #### General Administrative and Other Expenditure General administrative and other expenditure of the Department of Education is estimated to increase by $2.2 million in 1975-76 to $19.7 million. The increase includes $1.4 million for salaries, $0.8 million for the Curriculum Development Centre and $0.2 million for increased support of research in education. {: type="1" start="3"} 0. HEALTH The introduction of Medibank is the main factor affecting expenditure for health in 1975-76. There are, in addition, significantly higher allocations for the Hospitals Development Program and the Community Health Program. Direct outlays from the Budget on health are estimated to rise from $1,283.5 million in 1974-75 to $2,777.6 million in 1975-76, an increase of 116.4 per cent. Estimated outlays on health are equivalent to 12.7 per cent of total estimated outlays in 1975-76. Details of actual outlays on health in 1973-74 and 1974-75, together with estimated outlays in 1975-76 are shown in the following table: {:#subdebate-67-19} #### Medical Services and Benefits {:#subdebate-67-20} #### Medibank Benefits From 1 July 1975 everyone in Australia is entitled, under the *Health Insurance Act* 1973-75, to medical benefits which cover at least 85 per cent of the schedule fees for medical services provided by private doctors to patients out of hospital and to private patients in public or private hospitals. In no case will the cost to the patient exceed $5 for any single medical service for which the schedule fee is charged. Doctors have been asked to accept medical benefits as full payment for medical services rendered to eligible pensioners and their dependants. Residents have similar entitlements in respect of medical services overseas. From the same date everyone in Australia is entitled to benefits for consultations by optometrists who agree to participate in arrangements authorised by the *Health Insurance Act* 19-73-75. These benefits are equal to 85 per cent of the schedule fees, with a maximum patient payment of S5. Participating optometrists have agreed to accept benefits as full payment for consultations rendered to eligible pensioners and their dependants. Expenditure on benefits for medical services and optometrical consultations is estimated to amount to S615.0 million in 1975-76. This estimate is not comparable with expenditure on 'other medical benefits' in 1974-75 as it relates to a substantially different health insurance program. In addition to medical services, the program now provides benefits for optometrical consultations and the restriction on payment of Government benefits for consultations at which spectacles were prescribed has been removed. The program covers the whole population instead of insured members of private health funds and eligible pensioners (who are now covered for all private services instead of only general practitioner surgery consultations and home visits). The Medibank benefits replace the Commonwealth Benefits previously paid from the National Welfare Fund and private health insurance fund benefits, financed by members' contributions. They also relate to schedule fees higher than those applicable in 1974-75. {:#subdebate-67-21} #### Other Medical Benefits Included here are residual expenditures on medical benefits and payments for pensioner medical services that were authorised by the National Health Act. It is estimated that expenditure on these medical benefits and payments for pensioner medical services which were rendered before 1 July 1975 will amount to $65.0 million in 1975-76. {:#subdebate-67-22} #### Diagnostic Services This item covers the running costs of the Australian Government Pathology Laboratories, which provide a free pathology service to hospitals and medical practitioners, and the cost of supplying radio-active isotopes by the Australian Radiation Laboratory to hospitals and medical practitioners. The cost of these services is estimated to increase by $2.5 million in 1975-76, to $19.0 million. {:#subdebate-67-23} #### Treatment and Allowances for Ex-Servicemen and Women The Government meets the cost for eligible persons of specialist, local medical officer, paramedical and dental services, of providing and maintaining surgical aids (including spectacles) and of travelling expenses incurred in procuring medical treatment. Expenditure on these activities in 1975-76 is expected to increase by $9.3 million of which $7.4 million is due to increased fees for local medical officers and specialists. {:#subdebate-67-24} #### Hospital Services and Benefits {:#subdebate-67-25} #### Medibank Hospital Payments Under Medibank the Government will meet, from 1 July 1975, 50 per cent of the net operating costs of public hospitals in those States participating in the hospital cost-sharing arrangements authorised by the Health Insurance Act. In return, the participating States provide free standard ward public hospital treatment without means test and free public hospital out-patient services. Because of the increased Australian Government contributions under the costsharing arrangements the charges for private and intermediate care in public hospitals have been reduced significantly. The charge for a private patient in a public hospital in a participating State is $30 a day for a bed in a single room or $20 a day for any other bed. Private hospitals in participating States receive daily bed payments of $16 a day. Expenditure on Medibank hospital payments is estimated to amount to $822.0 million in 1975-76. All States and mainland Territories except Queensland and New South Wales are participating in the cost-sharing arrangements. {:#subdebate-67-26} #### Other Hospital Benefits This item mainly reflects expenditure authorised by the National Health Act on hospital benefits of $2 a day for insured patients, special account subsidies and subsidised Health Benefits Plan payments (which were not subsumed by payments under Medibank hospital cost-sharing arrangements) . With the introduction of the Medibank cost-sharing arrangements, expenditure on National Health Act benefits and payments is expected to decline by $43.4 million in 1975-76 to $97.9 million. {:#subdebate-67-27} #### Treatment of Ex-Servicemen and Women Hospitals and clinics are maintained in each State for the treatment of eligible ex-servicemen and women and dependants. Use is also made of private and State public hospitals where this is appropriate. The cost of this treatment (including capital outlay) is expected to increase by $12.1 million in 1975-76 to $110.3 million. The main factor in this increase is the cost of operation of repatriation institutions, which is expected to rise by $1.5 million in 1975-76 largely because of increases in wages and the higher cost of medical supplies. The cost of accommodating patients in non-repatriation institutions is expected to increase by $1.1 million in 1975-76, mainly because of increased hospital charges. {:#subdebate-67-28} #### Mental Health Facilities These expenditures include an annual payment to the New South Wales and South Australian Governments for the cost of maintaining residents of the Australian Capital Territory and the Northern Territory receiving psychiatric treatment, and the cost of medical care and treatment for eligible ex-servicemen and women at State mental hospitals. Assistance for non-residential mental health facilities is provided under the Community Health Program while assistance for residential mental health facilities is provided under the Hospital Development Program. *Hospitals in the Territories* The Capital Territory Health Commission operates two hospitals in the Australian Capital Territory and the Department of Health operates five hospitals and a leprosarium in the Northern Territory. With 50 per cent of the net operating costs of the hospitals being met by Medibank hospital payments from 1 July 1975, net expenditure under this item on hospital services in the Territories is estimated to be about the same as in 1974-75. Construction and equipping of the 300-bed Calvary Hospital and a central hospital services complex continue to account for the major part of capital outlays in the Australian Capital Territory. The major projects in the Northern Territory in 1975-76 are construction of a new hospital in Darwin and redevelopment of hospital sites at Alice Springs and Tennant Creek. . {:#subdebate-67-29} #### Hospitals Development Program The Hospitals and Health Services Commission completed a study of hospitals in Australia and its report was tabled in Parliament in April 1974. After considering the *report the* Government initiated, in 1974-75, a five-year program of capital assistance for the development of public hospitals. Grants are being provided to the States, subject to their meeting part of the cost from their own resources, for the provision and modernisation of approved public hospital and other residential health facilities, such as mental institutions, hostels for the mentally ill and nursing homes and hostels for the physically infirm. As announced in the Budget Speech, funds of $108.0 million have been provided for 1975-76, $77.7 million higher than in 1974-75. The amounts that the States will be required to provide from their own resources in 1975-76 have yet to be determined. {:#subdebate-67-30} #### Health Program Grants Health Program Grants, which are authorised by the *Health Insurance Act* 1973-75, are payable to eligible organisations to meet the costs, or such proportion as the Minister may determine, of approved health services, including contract medical services provided on other than a fee-for-service basis, ancillary and allied health services, including diagnostic screening. Expenditure on Health Program Grants in 1975-76 is estimated to amount to $8 million. {:#subdebate-67-31} #### Pharmaceutical Services and Benefits {:#subdebate-67-32} #### Pharmaceutical Benefits - General and Pensioners Except for a flat charge per prescription which is payable by patients, the Government meets the cost of a range of drugs and medicinal preparations supplied on a doctor's prescription to any person in the community. It is proposed to introduce legislation to increase, with effect from 1 September 1975, the patient contribution of $1 per prescription to $1.50 per prescription and the patient contribution payable by persons eligible for assistance under the Subsidised Health Benefits Plan by 25 cents to 75 cents per prescription. Persons enrolled in the Pensioner Medical Service and their dependants will remain eligible for benefits without charge. Estimated expenditure on general pharmaceutical benefits in 1975-76 is $179.5 million, a net reduction of $2.1 million compared with 1974-75. This reduction reflects a number of offsetting factors. On the one hand, higher dispensing fees for chemists are estimated to cost $36.7 million in 1975-76, including retrospective payments to 1 July 1973 (the full-year cost is $15.3 million), while price increases, changes in prescribing patterns and an increase in utilisation are estimated to cost $11.5 million. On the other hand, savings from the higher patient contributions in 1975-76 are estimated to amount to $23.3 million and part ($27 million) of the estimated cost of supplying pharmaceutical benefits to patients in public hospitals has been transferred to Medibank Hospital Payments. Expenditure on pharmaceutical benefits for eligible pensioners is estimated to increase by $20.8 million in 1975-76, to $101.5 million. The additional outlay results from increases in chemists' dispensing fees, including retrospective payments to 1 July 1973, amounting to $18 million (the full-year cost is $7 million) and increases in numbers of beneficiaries and in utilisation. {:#subdebate-67-33} #### Pharmaceutical Benefits - Ex-Servicemen and Women The Government meets the full cost of drugs and medicinal preparations supplied on a doctor's prescription for eligible ex-servicemen and women and dependants. The cost of these benefits is expected to increase by $4.4 million in 1975-76 to $27.2 million. The increase mainly reflects increases in chemists' dispensing fees, including retrospective payments, amounting to $3.4 million. {:#subdebate-67-34} #### Nursing Home and Domiciliary Nursing Care Services and Benefits {:#subdebate-67-35} #### Nursing Home Benefits and Payments For all patients in nursing homes not participating in deficit financing arrangements authorised by the *Nursing Homes Assistance Act* 1974, a benefit of $3.50 a day is payable, with a supplementary benefit of $3.00 a day for patients requiring intensive care. An additional benefit is also payable for pensioners enrolled in the Pensioner Medical Service, and an equivalent fund benefit is payable to other patients insured with registered hospital insurance funds. Under the *Nursing Homes Assistance Act* 1974 the Government meets approved operating deficits, after the receipt of patient contributions, of eligible nursing homes that agree to participate in arrangements authorised by the Act. As announced in the Budget Speech, the Government proposes to increase from the first pension pay day in November 1975 the supplementary intensive care benefit to $4.40 a day in all States and the additional pensioner benefit payable in New South Wales, Queensland and Western Australia to $5.95 a day. The proposed increases in both benefits will not apply to patients in Government nursing homes. Estimated expenditure on nursing home benefits in 1975-76 is $190.5 million, an increase of $28.9 million compared with 1974-75. Financing the deficits of eligible nursing homes is estimated to cost $31.3 million, an increase of $21.2 million. {:#subdebate-67-36} #### Domiciliary Nursing Care Benefit The Government pays a 'benefit of $2 a day to persons who arrange for the provision of adequate nursing care for elderly relatives at home as an alternative to institutional care. The elderly relative must have attained the age of sixty-five years and have a medical condition that would justify admission to an approved nursing home. Expenditure on the benefit is estimated to increase by $1.2 million in 1975-76 to $8.3 million, reflecting an increase in utilisation. {:#subdebate-67-37} #### Nursing Home and Domiciliary Nursing Care for Ex-Servicemen and Women The Government meets the full cost of nursing home accommodation required by ex-servicemen and women because of service-related disabilities. Certain other categories of ex-servicemen and women, including chronically ill war widows, may be assisted with the cost of nursing home accommodation for disabilities not due to war service, on the same basis as nursing home patients enrolled in the Pensioner Medical Service. Free domiciliary care services are provided to these groups as required. Expenditure on nursing home and domiciliary care for eligible persons is expected to increase by $4.8 million in 1975-76 to $25.9 million. Of this increase $4.3 million is attributable to higher nursing home charges. {:#subdebate-67-38} #### Other This item includes provision for a further instalment of $925,000 in 1975-76 from a special grant of $1.7 million on a dollar-for-dollar basis to Queensland for the construction of Stage 2 of a public nursing home at Wynnum. It also includes subsidies, estimated to cost $5.9 million in 1975-76, to non-profit organisations that provide home nursing services. The rate of subsidy was increased with effect from 1 July 1975. For organisations established before September 1956, the annual Australian Government payment for each nurse who attracts subsidy was increased from $6,200 to $7,100. For organisations established after that date, the annual subsidy for each nurse employed was increased from 83,100 to $3,550. As at present, the Australian Government subsidy to any organisation will not exceed that paid to the organisation by a State. The increase in the subsidy is expected to cost $525,000 in 1975-76. {:#subdebate-67-39} #### Community Health Facilities and Services The Government is providing assistance to the States, local government authorities and other eligible organisations for the provision of community-abased health services. Except for projects having an Australia-wide application, the Government meets 75 per cent of capital costs and 90 per cent of operating costs for all projects. An amount of $64.9 million has been allocated to the Program for 1975-76; this is $36.0 million higher than expenditure on the Program in 1974-75. In addition, grants to the States and institutions for planning and research purposes are estimated at $1.0 million in 1975-76. The *Mental Health and Related Services Assistance Act* 1973 expired on 30 June 1975 but expenditure on projects approved before 30 June 1975 is estimated to amount to $1.0 million in 1975-76. Facilities previously funded under the Act will be eligible for funding under the Community Health Program. {:#subdebate-67-40} #### Treatment and Prevention of Tuberculosis Under the *Tuberculosis Act* 1948, the Government reimburses the States for capital expenditure on facilities for the treatment of tuberculosis and for maintenance expenditure on the diagnosis and treatment of tuberculosis to the extent that maintenance expenditure is in excess of the States' expenditure in 1947-48. On the introduction of the Medibank hospital cost-sharing arrangements, the maintenance of tuberculosis patients in hospitals is included in public hospital costs. New hospital facilities will be funded under the Hospitals Development Program. The Government also extends allowances to persons suffering from tuberculosis and their dependants. It is proposed to increase these allowances with effect from the first pension pay day in November 1975. Because of the transfer of some costs to the Medibank cost-sharing arrangements, expenditure under this item on the treatment and prevention of tuberculosis is estimated to decline by $4.5 million in 1975-76, to $10.6 million. {:#subdebate-67-41} #### Health Schemes for School Children The Government is establishing, in co-operation with the States, an Australia-wide school dental scheme. The aim is to provide a free dental service to all primary school children by 1982, and subsequently, to pre-school and secondary school children under 15 years of age. The Government is meeting the capital and running costs of training facilities as well as the capital costs and 75 per cent of the running costs of clinics. Expenditure on the scheme is estimated to increase by $7.5 million in 1975-76, to $26.4 million. Health Services in the Territories In the Australian Capital Territory and the Northern Territory the Australian Government provides health services of the type provided elsewhere in Australia by State and local government authorities. These services include public health activities, ambulance services and community health centres. The cost of these services is estimated to increase by $8.1 million in 1975-76, to $26.5 million. {:#subdebate-67-42} #### Health Services for Aboriginals The main expenditure under this heading consists of grants to the States for Aboriginal health services. These grants, which are estimated to increase by $4.5 million in 1975-76 to $15.1 million, will provide additional hospital facilities, clinics, health centres, doctors and nurses in areas of high Aboriginal population. Provision is made also for the development of programs of health education and preventive medicine. {:#subdebate-67-43} #### Other Health Services {:#subdebate-67-44} #### Medical Research Grants Through the medical research program of the National Health and Medical Research Council, the Australian Government assists the medical research activities of Australian and State Government departments, universities and institutions, and individual research workers, as well as the training of medical research workers. The Government has decided to increase by $6.7 million to $24 million its support for medical research under the auspices of the National Health and Medical Research Council in the 1976-78 triennium. Expenditure in 1975-76 is estimated at $4 million, comprising $1.7 million remaining under the 1973-75 triennium and $2.3 million for the first six months of the 1976-78 triennium. Additional payments of $500,000 each will be made to the Howard Florey Institute of Experimental Physiology and Medicine and the Walter and Eliza Hall Institute of Medical Research. Similar payments were made to these Institutes in 1974-75. {:#subdebate-67-45} #### Commonwealth Serum Laboratories Commission The main functions of the Commonwealth Serum Laboratories Commission are to produce and sell biological products, undertake research into the production of therapeutic biological products and maintain stocks of biological products. The total provision of $14.1 million for 1975-76 is $6.2 million higher than actual expenditure in 1974-75. {:#subdebate-67-46} #### Purchase of Pharmaceutical Manufacturing Company Estimated expenditure of $8.4 million under this heading in 1975-76 reflects the purchase price, less a repayable advance of $0.3 million, of a group of private pharmaceutical companies. {:#subdebate-67-47} #### Aids and Appliances The Government meets the cost of supplying, free of charge, hearing aids (and batteries) to children, eligible pensioners and their dependants, artificial limbs to civilians, and stoma appliances and home dialysis equipment (and supplies) to all persons in the community who need them. Expenditure is expected to increase by $6.2 million in 1975-76 to $8.6 million. {:#subdebate-67-48} #### Educational Campaigns The Government has sponsored two educational campaigns in the health field, namely the National Drug Education Program and the Anti-Smoking Campaign. Funds have been provided to support State and national projects of drug education since 1970-71; $750,000 has been allocated for the program in 1975-76. The National Education Campaign on Smoking was launched in 1972. Under this program up to $500,000 for each of the three years to 1974-75 was made available for the purposes of disseminating information on the health hazards of smoking. An amount of $100,000 has been allocated to the Campaign for 1975-76 to meet carryover commitments. To reinforce this educational campaign, the Government has decided that advertising of cigarettes and cigarette tobacco on television and radio will be phased out over three years ending September 1976. {:#subdebate-67-49} #### Blood Transfusion Service and Products The Australian Government meets 35 per cent of the annual operating cost of the Red Cross Society's Blood Transfusion Service in the States and 95 per cent in the Territories. The Government has now agreed to the inclusion of approved special projects in operating costs for subsidy purposes and to share equally with the States approved capital expenditures. The Australian Government's share of the increased cost in 1975-76 is estimated to be $450,000. Blood collected by the Society's Transfusion Service is processed into blood fractions, plasma and serum by the Commonwealth Serum Laboratories Commission. The blood products are supplied, free of charge, to hospitals and approved pathologists for use in medical diagnosis and treatment. The Australian Government reimburses the Commission for the cost of processing the blood. The Government's contributions are estimated to increase by SI. 3 million in 1975- 76, to $5.5 million. {:#subdebate-67-50} #### Quarantine Services Human, animal and plant quarantine measures are enforced mainly to prevent the introduction of exotic diseases into Australia. By arrangement, the States administer animal and plant quarantine and have their costs reimbursed by the Australian Government. Human quarantine is administered by the Australian Government. To encourage the safe disposal of overseas ships' garbage, the Australian Government has met the whole cost of providing incinerators and ancillary structures at selected ports and has shared equally with the States the cost of access roads. Quarantine services in 1975-76 are expected to cost $7.5 million, $0.8 million more than in 1974-75. {:#subdebate-67-51} #### Other Included here are the Australian Government's subsidy of $983,000 to the Royal Flying Doctor Service, subsidies towards the cost of certain international health conferences, and administrative expenditures related to public health and the administration of the Therapeutic Goods Act. {:#subdebate-67-52} #### General Administration This item comprises the general administrative and capital expenses of the Department of Health, the Department of Social Security (in respect of health insurance), the Hospitals and Health Services Commission and the Health Insurance Commission. Expenditure is estimated to increase from $40.8 million in 1975-76 to $81.8 million, reflecting the full-year effect of salary and other cost increases in 1974-75 and the increased costs of the Health Insurance Commission in its first full year of operation. {:#subdebate-67-53} #### Recoveries Recoveries stem mainly from charges met by certain countries for treatment given to their ex-servicemen through repatriation facilities. {: type="1" start="4"} 0. SOCIAL SECURITY AND WELFARE The Australian social security system is intended to protect people from economic hardship caused by events such as loss of earnings through age, invalidity, sickness, unemployment or the loss or absence of a supporting male as a result of death, desertion or long-term separation. It is designed also to compensate ex-servicemen for war-caused disabilities and the dependants of those whose deaths are war-related and to assist parents with the expenses associated with bearing and raising children. Much of this assistance is provided by way of cash benefits. There are selective, or means-tested, benefits such as invalid and widows pensions and unemployment benefits, as well as universal benefits such as maternity allowances and child endowment. Additionally, assistance is provided, either directly or through State and local government authorities and voluntary agencies, for a wide range of welfare services for people with special needs. The aged, for example, are assisted with their accommodation needs and invalids may be trained so that they can re-enter paid employment. Assistance is provided in a variety of forms for the advancement of Aboriginals. Total direct outlays on social security and welfare are estimated to increase from $3,703.4 million in 1974-75 to $4,772.2 million in 1975-76, an increase of 28.9 per cent. Direct outlays on social security and welfare in 1975-76 are equivalent to 21.8 per cent of estimated total Budget outlays. During 1975-76 the Government expects to receive and consider the reports of several major inquiries which could have a significant bearing on the future development of the Australian social security and welfare system. Final reports are expected from the Commission of Inquiry into Poverty and the National Superannuation Committee of Inquiry. The report of the Independent Inquiry into the Repatriation System is also expected during 1975-76. The Prime Minister has announced that the Government is to institute a review of Australia's income security system. Details of actual outlays on social security and welfare in 1973-74 and 1974-75 together with estimated outlays in 1975-76 are shown in the following table: Brief , explanations of the composition of the items and comments on the estimates for 1975-76 are given below. Assistance for the Aged {:#subdebate-67-54} #### Pensions and Allowances Age pensions are payable, free of means test, to residentially qualified men and women aged 70 years or more or who are permanently blind. Age pensions are payable, subject to a means test on income and property, to residentially qualified women aged 60 to 69 years and to residentially qualified men aged 65 to 69 years. To be residentially qualified for age pension, a period of ten years continuous residence in Australia is usually necessary. As announced in the Budget Speech, the Government proposes to abolish the means test for residentially qualified men and women aged 69 years as from 1 July 1976. Wife's pension is payable to an age pensioner's wife who does not qualify for an age, invalid or repatriation service pension in her own right. The pension is subject to a means test. Additional payments are available to pensioners with dependent children. These payments are subject to a means test. As announced in the Budget Speech, it is proposed to increase the additional pension for children by 50 cents to $7.50 a week. Supplementary assistance of up to $5 a week is payable, subject to a special means test, to pensioners who pay rent or lodging charges. Generally the amount of supplementary assistance payable is not to exceed the actual amount paid for rent or lodgings. Upon the death of one of a married pensioner couple, the surviving member may become entitled to receive, for up to six fortnightly instalments, the equivalent of the two pensions that would have been paid had the spouse not died. It is proposed to increase the standard rate of pension in Spring 1975 and Autumn 1976 by the percentage increase in the Consumer Price Index between the December quarter 1974 and the June quarter 1975 and between the June and December quarters 1975 respectively. At the same time the married rate of pension and benefit will be increased so that the standard rate is equal to 60 per cent of the combined married rate. The Spring increase is to take effect from the first pay period in November. The existing maximum rates of pensions and additional payments are set out below, together with those proposed as from 1 November 1975: The estimated cost of the proposed Spring and Autumn increases in the rates of age pension and additional pension for children is $149.2 million in 1975-76 and $336.3 million in a full year. At 30 June 1975 there were 1,119,000 age pensioners (including wives of age pensioners in receipt of a wife's pension) and during 1975-76 the number is estimated .to increase by 57,000 to 1,176,000. The average amount of age pension (including additions for children and supplementary assistance) is estimated to rise from $28 a week in 1974-75 to $35 a week in 1975-76, an increase of 25 per cent. The main reasons for this are the proposed increases in pension rates in line with the CPI, the full-year effects of increased rates of pension introduced during 1974-75 and of the abolition from April 1975 of the means test for residentially qualified men and women aged 70-74 years. {:#subdebate-67-55} #### Aged Persons Accommodation The *Aged and Disabled Persons Homes Act* 1954-1974 is designed to encourage and assist organisations to provide suitable homes in which aged people may live in conditions approaching as nearly as possible ordinary domestic life. The Government makes grants on a $4 for $1 basis to religious and charitable organisations and localgoverning bodies towards the cost of erection, extension or purchase of homes for the aged. The maximum subsidy limits under the Act are $9,360 for a single unit and $10,920 for a double unit plus a maximum of $1,920 a unit for land. Handicapped adults may also be accommodated in subsidised homes. The Government pays a personal care subsidy of SI 5 a week to eligible organisations for persons aged 80 years or over and other residents who require, and are receiving, approved personal care while living in hostel-type accommodation provided by those organisations. Expenditure under the Act is estimated at $30.0 million in 1975-76, $7.2 million more than in 1974-75. The *Aged Persons Hostels Act* 1972 is designed to encourage the provision of hostel accommodation for the aged. Subject to certain conditions, the Australian Government meets the cost of providing additional hostel accommodation by eligible organisations up to a maximum of $11,700 a person. The Government also pays an additional grant of up to $2,400 a person for the purchase of land; a further $250 a person is available for furnishings. Accommodation provided under the Act must be allocated strictly on the basis of need and without any contribution from the prospective resident. Expenditure under the Act is estimated at $40.0 million in 1975-76, $20.3 million greater than in 1974-75. The *States Grants (Dwellings for Pensioners) Act* 1974 continued the scheme of grants provided in earlier legislation for the provision of self-contained dwelling units at reasonable rentals for single age pensioners or repatriation pensioners (receiving pension on grounds of age) who have little or no means apart from pension. Under the 1974 Act the eligibility conditions were widened to include single invalid and Class B widow pensioners and single repatriation pensioners who are permanently unemployable or suffering from tuberculosis. Grants totalling $30 million are being made available over the three-year period commencing July 1974 and allocated among the States in proportion to the total number of age, invalid and Class B widow pensioners in receipt of supplementary assistance in each Slate. Rents of units provided under the extended scheme are to be not less than the maximum rate of supplementary assistance paid to pensioners. Expenditure in 1975-76 is estimated at $13.8 million, $7.7 million more than in 1974-75. {:#subdebate-67-56} #### Home Care Services Under the *States Grants (Home Care) Act* 1969-1973 and the *States Grants (Paramedical Services) Act* 1969, the Australian Government provides funds, in association with the States, for the provision of a range of home care services, mainly for aged persons and for the provision of senior citizens centres. Under the *States Grants (Home Care) Act* 1969-1973, the Australian Government shares on a $2 for $1 basis with the States the cost of approved housekeeping or other domestic assistance provided wholly or mainly for aged persons in their homes. The Australian Government also shares on a $2 for $1 basis with the States up to a maximum of two-thirds of the capital cost of approved senior citizens centres, as well as meeting on a $2 for $1 basis the cost of the salary of a welfare officer employed in conjunction with such a centre. Grants are estimated to amount to $6.2 million in 1975-76, $1.6 million more than in 1974-75. The Australian Government shares, on a $1 for $1 basis with the States, the cost of approved paramedical services provided wholly or mainly for aged persons in their homes under the *States Grants (Paramedical Services) Act* 1969. Grants in 1975-76 are estimated at $347,000, $15,000 less than in 1974-75. The *Delivered Meals Subsidy Act* 1970-1974 is designed to assist the establishment, expansion, improvement or maintenance of approved meals-on-wheels services. The basic rate of subsidy is 25 cents a meal. An additional subsidy of 5 cents a meal is payable if the organisation undertakes to include with each meal approved kinds and quantities of fresh fruit or fruit juice. Expenditure under the Act in 1975-76 is estimated at $1.9 million, $0.4 million more than in 1974-75. {:#subdebate-67-57} #### Assistance to Veterans and Their Dependants {:#subdebate-67-58} #### War Pensions and Allowances In general, until September 1973 a prerequisite for a veteran or his dependants to be eligible for a war pension (and in certain circumstances associated benefits, including medical treatment), was that the veteran must have had service in the 1914-18 War, the 1939-45 War, or certain subsequent operations of a warlike nature and have suffered incapacity or death related to that service. From 7 December 1972 eligibility for most repatriation benefits was extended to: o Members of the Defence Force who have completed 3 years effective full-time service on or after 7 December 1972; o Persons engaged or appointed to the Defence Force for a period of full-time service of not less than 3 years but who, on or after 7 December 1972, died or were discharged on medical grounds for reasons attributable to their defence service before the completion of 3 years service, unless their discharge occurred before the completion of 12 months effective service and resulted from a preexisting condition which was not aggravated by service; and o National Servicemen serving immediately before 7 December 1972 who complete the period of service for which they were engaged to serve or who die or are discharged on medical grounds as a result of their service prior to the completion of that period of service. The term 'veteran' now includes any man or woman eligible for consideration under the *Repatriation Act* 1920-1975 or associated Acts by virtue of service in the Australian armed forces. The term 'service' includes service in the 1914-18 War, the 1939-45 War, the Korea-Malaya Operations, the Far East Strategic Reserve, special service in South-East Asia and service with the Defence Force on or after 7 December 1972. Basic eligibility varies according to the nature of service. Broadly, for those with 'active service', incapacity or death resulting from 'any occurrence' during service may be accepted. For those with 'home service', however, the criterion is narrower, in that incapacity or death must have arisen out of, or be attributable to, that service; incapacity or death arising from a condition existing prior to enlistment may be accepted if aggravated or contributed to by the conditions of service. {:#subdebate-67-59} #### Classes of War Pensions Pensions are paid to eligible veterans in three main categories: o The Special Rate (known as the T & PI) Pension, payable to a veteran who, as a result of service, is blinded, or is totally and permanently incapacitated so that he is unable to earn more than a neglible percentage of a living wage; o The Intermediate Rate, payable to a veteran who, because of the severity of his incapacity accepted as related to service, can work only part-time or intermittently, and in consequence is unable to earn a living wage; and o The General Rate, payable to a veteran who has an incapacity accepted as related to service, but who is yet able to work full-time, although under difficulties. The amounts payable range from 10 per cent to 100 per cent of the maximum general rate, according to the assessed degree of incapacity. Pensions are also paid to the wives of incapacitated veterans and to their children. Such pensions are paid at rates varying with the assessed degree of the particular veteran's incapacity. When the death of a veteran has been accepted as related to his service, his widow qualifies for the war widow's rate of pension and for associated benefits, while his children each receive pensions at 'orphan' rates and other benefits. If a veteran's death has not been accepted as related to service, but at the time of death he was receiving, or is later adjudged to have been eligible to receive, a pension at one of the special rates or as a double amputee, his dependants qualify for pensions as if his death had been accepted as related to service. Other dependants of deceased veterans may qualify for pensions in certain cases. {:#subdebate-67-60} #### Allowances Various allowances are provided to supplement war pensions. These allowances vary according to the type or severity of disablement and the special needs of the pensioners. {:#subdebate-67-61} #### Rates of Pension and Allowances The existing and proposed rates of the main war pensions and allowances are set out below: During 1974-75 the average number of veterans and their dependants in receipt of war pensions was 523,500 and for 1975-76 the number is estimated to be 507,000. The effect on expenditure of this estimated decline in numbers is more than offset by the full-year effects of increased rates of benefits introduced in 1974-75 and the increases in benefit rates announced in the Budget Speech. The proposed changes in war pensions are estimated to cost $10.0 million in 1975-76 and $20.2 million in a full year. {:#subdebate-67-62} #### Service Pensions Service pension may be payable to: o a male veteran who served in a theatre of war and who has attained the age of 60 years or is permanently unemployable; o a female veteran who served in a theatre of war or embarked for service abroad and has attained the age of 55 years or is permanently unemployable; and o a veteran suffering from pulmonary tuberculosis irrespective of age or the area of service. Service in a 'theatre of war' means, in respect of the 1914-18 War or 1939-45 War, service 'at sea, in the field or in the air, in naval, military or aerial operations against the enemy in an area, or on an aircraft or ship of war, at a time when danger from hostile forces of the enemy was incurred in that area or on that aircraft or ship of war . . .' In respect of certain later service, 'service in an operational area', and 'special service' as defined, are the qualifications equivalent to service in a 'theatre of war'. From Autumn 1975 ex-members of the Defence Forces of British Commonwealth countries who served in a theatre of war and have had at least ten years residence in Australia may be entitled to a service pension. A service pension is the broad equivalent of an age or invalid pension. The advantages to the veteran are availability of the service pension five years earlier and, in certain circumstances, eligibility for a wide range of medical treatment services in the repatriation system. Service pensioners are eligible for the same range of pensions and allowances as age pensioners and the rates of benefit are the same. Like age pensions, service pensions will be increased in the Spring and Autumn in line with movements in the Consumer Price Index. Service pensions are paid, free of means test, to eligible veterans aged 70 years and over. For eligible veterans under 70 years of age 50 per cent of any war pension received is disregarded as income for service pension means test purposes. During 1974-75 the average number of service pensioners (including wives) was 115,500; it is estimated to rise to 137,000 in 1975-76. Increased expenditure in 1975-76 reflects this increase in numbers arising from widened eligibility and normal growth, the full-year effect of pension increases granted in 1974-75 and increased rates in 1975-76. The proposed increases in service pensions are estimated to cost $15.2 million in 1975-76 and $32.8 million in a full year. Assistance to the Handicapped {:#subdebate-67-63} #### Invalid Pensions and Allowances Invalid pensions are payable, subject to a means test on income and property, to persons not less than 16 years of age who are permanently incapacitated for work to the extent of at least 85 per cent or permanently blind and have become so while residing in Australia. Pensions are subject to a means test on income and property except in the case of people who are permanently blind. If the incapacity or blindness occurred outside Australia, the residence qualification is the same as for an age pension (i.e. 10 years). Invalid pensioners are eligible for the same additional payments as age pensioners and the rates of payment are the same. Similarly, wife's pension is payable to the wife of an invalid pensioner if she is not eligible for an age, invalid or service pension in her own right. At 30 June 1975 there were 198,000 invalid pensioners (including wives of invalid pensioners in receipt of wife's pension) and during 1975-76 the number is estimated to increase by 9,000 to 207,000. The average amount of invalid pension (including additions for children and supplementary assistance) is estimated to rise from $31 a week in 1974-75 to $38 a week in 1975-76, an increase of about 23 per cent. The main reasons for this are the proposed increases in pension rates in line with the CPI and the full-year effects of increased rates of benefit introduced during 1974-75. The estimated cost of the increases in rates of invalid pension and additional pension in Spring 1975 and Autumn 1976 is $25.9 million in 1975-76 and $57.4 million in a full year. {:#subdebate-67-64} #### Handicapped Child's Allowance Handicapped child's allowance, of $10.00 a week, is payable to parents or guardians in respect of a child under the age of 16 years who is cared for at home and who, because of the severity of the handicap, is in need of constant care and attention. The allowance became payable on 31 December 1974 and 1975-76 is its first full year of operation. The number of recipients at 30 June 1975 was 13,000 and this number is estimated to increase to 16,000 by 30 June 1976. The allowance is estimated to cost $7.8 million in 1975-76, $6.2 million more than in 1974-75. {:#subdebate-67-65} #### Sheltered Employment Allowances Sheltered employment allowances are payable to disabled people employed in approved sheltered workshops who are qualified to receive an invalid pension or who would become so qualified if they ceased to be provided with sheltered employment. The allowance is subject to the same means test as applies to the invalid pension and the rates of payment are the same. An incentive allowance of $5 a week is paid (free of means test) to the recipients .of sheltered employment allowance. Recipients of the incentive allowance are not eligible for supplementary assistance. The *Handicapped Persons Assistance Act* 1974 has replaced the *Sheltered Employment (Assistance) Act* 1967-1973 and the *Handicapped Children (Assistance) Act* 1970-1973. Under the Act, the Australian Government provides subsidies on a $4 for $1 basis to non-profit organisations and local governing bodies for the purchase, construction, extension, alteration, rental and maintenance of premises that cater for physically and mentally handicapped people. Buildings qualifying for subsidy comprise day training centres for handicapped children, activity therapy centres and sheltered workshops for handicapped adults and residential projects for people who attend these establishments. Residential projects for people who, because of a disability, need special accommodation to allow them to engage in normal outside employment also qualify for subsidy. Subsidies on a $4 for $1 basis are also available for the cost of furnishing and equipping the various types of centre, while assistance with operating costs may be provided by means of staff salary subsidies. The latter are usually on a $1 for $1 basis although a higher percentage, up to 100 per cent, may be paid for the first two years of operation of some new projects. A training fee of $500 is paid to eligible sheltered workshops for each former employee who, after completing more than six months sheltered employment, graduates to and retains normal employment for 12 months or more. Expenditure under the Act is estimated at $30.0 million in 1975-76, compared with $14.9 million in 1974-75 under the two Acts it has replaced. {:#subdebate-67-66} #### Handicapped Children's Benefit The handicapped children's benefit of $3.50 a day for each child is payable to charitable and religious organisations conducting approved homes accommodating and caring for 'both physically and mentally handicapped children under 16 years of age. The benefit continues to be paid to an eligible organisation when a child is absent from the institution for a short period only, e.g., a week-end home visit. Expenditure on the benefit is estimated at $1.2 million in 1975-76, $0.3 million more than in 1974-75. {:#subdebate-67-67} #### Rehabilitation Services The Australian Government Rehabilitation Service is designed to restore disabled people to their fullest physical, mental, social and vocational usefulness. Treatment and training are provided free to persons in the following categories if there is a reasonable prospect of their engaging in gainful employment: o invalid pensioners; o widow pensioners and supporting mothers (other than those eligible under the National Employment and Training System) ; o recipients of unemployment, sickness or special benefit; o former national and regular servicemen who are disabled at time of discharge but are ineligible for rehabilitation assistance from the Department of Repatriation and Compensation; o persons receiving a tuberculosis allowance; o persons who become disabled while working for the Australian Government and who are covered by the Compensation (Australian Government Employees) Act; and o boys and girls of 14 and 15 years who would otherwise be likely to qualify for an invalid pension at 16. Expenditure is estimated at $12.0 million in 1975-76 compared with $9.4 million in 1974-75. {:#subdebate-67-68} #### Assistance to Widows and Supporting Mothers {:#subdebate-67-69} #### Widows' Pensions and Allowances Pensions are payable to widows subject to a means test on income and property. No period of residence is necessary if a woman and her husband were residing permanently in Australia when she became a widow. In other cases, there is a residence qualification of either 5 years immediately prior to claim or ten years continuous residence in Australia at any time. There are three classes of widows' pension: Class A - A widow with one or more dependent children in her care. Class B - A widow without dependent children and at least 50 years of age or at least 45 years of age if her Class A pension ceased after she reached that age because she no longer had a dependent child in her care. Class C - A widow without dependent children and in necessitous circumstances within 26 weeks of her husband's death. For all classes, the term 'widow' includes a woman who was the common-daw wife of a man for at least three years immediately before his death. For Class A and B, it includes a wife who has been deserted for six months, a divorcee, a woman whose husband has been imprisoned for six months and a woman whose husband is in a mental hospital. Widow pensioners are eligible for supplementary assistance, additional pension for dependent children and mother's allowance (in lieu of guardian's allowance) at the same rates as age and invalid pensioners. These payments are made subject to a means test. At 30 June 1975, there were 121,000 widow pensioners and during 1975-76 the number is estimated to increase by 5,000 to 126,000. The average rate of pension (including additions for children and supplementary assistance) is estimated to rise from $39 a week in 1974-75 to $48 a week in 1975-76, an increase of about 23 per cent. The estimated cost of the increases in the rates of widows' pensions and additional payments announced in the Budget Speech is $19.4 million in 1975-76 and $42.7 million in a full year. {:#subdebate-67-70} #### Supporting Mother's Benefit and Allowances A supporting mother's benefit is paid to unmarried mothers and mothers who are deserted de facto wives, de facto wives of prisoners and separated wives. The benefit becomes payable six months after the date of the event which gives rise to eligibility (e.g. the birth of a child or separation), and it is payable at the same rate and subject to similar conditions as the Class A widow's pension. Supporting mothers are alsoeligible for supplementary assistance, additional benefit for dependent children and mother's allowance. At 30 June 1975, there were 36,000 supporting mother beneficiaries and during. 1975-76 the number is estimated to increase by 6,000 to 42,000. The average rate of benefit (including additions for children and supplementary assistance) is estimated to rise from $46 a week in 1974-75 to $55 a week in 1975-76, an increase of about 20 per cent. The estimated cost of the increases in the rates of supporting mother's benefit and additional payments announced in the Budget Speech is $7.1 million in 1975-76 and $13.7 million in a full year. {:#subdebate-67-71} #### Other Under the *States Grants (Deserted Wives) Act* 1968 the Australian Government shares,, within limits, on a $1 for ,$1 basis with the States the cost of helping certain mothers of families without a breadwinner where the mothers are ineligible for a Class A widow's pension or the supporting mother's benefit. Assistance is provided during the first six months after the date of the event which gives rise to eligibility (eg. the birth of a child or separation). The main groups of mothers assisted are deserted wives,, deserting wives, wives of prisoners and unmarried mothers. After the first six months, these groups of mothers may qualify for either a Class A widow's pension or a supporting mother's benefit. {:#subdebate-67-72} #### Assistance to Families {:#subdebate-67-73} #### Child Endowment Child endowment is payable to people with children under 16 years of age, or over 16 but under 21 years of age and receiving full-time education at a school, college or university and not in employment. There is no means test. Endowment is usually paid to the mother and to be eligible for endowment she must reside, or intend to reside, permanently in Australia and have the care of one or more children. Special conditions apply if the person does not intend to reside permanently in Australia. The rates of endowment are as follows: At 30 June 1975, there were 4,284,000 endowed children (including student children) and during 1975-76 the number is estimated to increase by 16,000 to 4,300,000. {:#subdebate-67-74} #### Maternity Allowance Maternity allowance is payable, as a lump sum, to mothers on the birth of children. There is no means test. A woman is entitled to the allowance if she resides, or intends to reside, in Australia permanently and gives birth to a child here or on board a ship travelling to Australia. Special conditions apply to a woman who is not a British subject and does not intend to reside in Australia permanently. The rates of allowance are as follows: During 1975-76 the number of grants is estimated at 240,000. {:#subdebate-67-75} #### Other Grants are made to eligible marriage guidance organisations (estimated at $1.6 million in 1975-76) and to eligible family planning organisations (estimated at $0.4 million in 1975-76). Expenditure on the provision of family planning facilities and on the training of medical personnel is estimated at $0.7 million. In 1975-76, $0.1 million will be provided to finance studies into the effectiveness of existing programs and of other ways of providing family planning services. An orphan's pension of $1 1 a week is payable free of means test to the guardian of a child under 16 years of age or a full-time student 16 to 20 years of age both of whose parents are dead or one of whose parents is dead and the whereabouts of the other is unknown. It is proposed to extend this benefit in respect of a child whose sole surviving parent or adoptive parent is in prison or in a mental hospital. Expenditure is estimated at $2.0 million in 1975-76, $0.6 million more than in 1974-75. Assistance to the Unemployed and Sick {:#subdebate-67-76} #### Unemployment and Sickness Benefits Unemployment and sickness benefits are available, subject to a means test on income, to people who are unemployed or to people who are temporarily incapacitated for work and have thereby lost income. A special benefit may be paid to a person ineligible for a pension or for an unemployment or sickness benefit if he is unable to earn a sufficient livelihood for himself and his dependants. To be eligible for unemployment or sickness benefit, a person must be at least 16 years of age and under 60 (females) or under 65 years (males). He must also have lived in Australia for at least a year immediately prior to claiming benefit or intend to remain here permanently. The basic rates of benefit are generally the same as for age and invalid pensions. As announced in the Budget Speech, however, it is proposed that pension increases proposed for 1975-76 should not flow on to unemployment, sickness and special beneficiaries under 18 years of age. Beneficiaries are also eligible for additional benefit for each dependent child. After receiving benefit for six consecutive weeks sickness beneficiaries become eligible, subject to a special means test, to receive supplementary allowance of up to $5.00 a week if they pay rent or for lodgings. This allowance is not payable to beneficiaries in hospital who have no dependants. The cost of the increases in rates of unemployment, sickness and special benefits and additional payments announced in the Budget Speech is estimated to be $22.3 million in 1975-76 and $49.4 million in a full year. {:#subdebate-67-77} #### Regional Employment Development Scheme This Scheme was introduced by the Australian Government in September 1974. Under it, financial assistance is provided towards expenditures on projects of economic and/or social benefit which provide employment for persons who would otherwise remain out of work. Local government bodies, State Government departments and authorities, community, sporting and recreational organisations and charitable bodies have received assistance under the Scheme. When the Scheme was first introduced, assistance under it was confined to bodies in areas 'declared' by the Australian Government to be of high unemployment. In February 1975, eligibility for assistance under the Scheme was extended to 'nondeclared' areas but subject to limits in total commitments for assistance at any one time of $350,000 for expenditure in each metropolitan local government authority area and $100,000 in each rural local government authority area. (No such limits apply in 'declared' areas.) At 30 June 1975 the number of persons employed under the Scheme was almost 30,000. $60.4 million was spent in 1974-75. Expenditure in 1975-76 is estimated at $135 million. {:#subdebate-67-78} #### Structural Adjustment Assistance Following the provision of assistance to employees displaced as a direct result of the Government's decision to reduce tariffs 'by 25 per cent in 1973, an expanded scheme of income maintenance was introduced with effect from 23 April 1974. This expanded scheme assists people who become unemployed as a direct result of specific action by the Government which is designed to bring about significant structural changes in industry in the national interest and which the Government judges will have effects beyond the normal adaptive capacity of the economy. The scheme provides for payments equal to a person's average weekly earnings over the previous six months, with a limit equal to *H* times average weekly earnings, for up to 6 months or until suitable alternative employment is obtained, whichever is the lesser period. As a general principle, applications for assistance must be made within twelve months of the Government's announcement of the availability of adjustment assistance. Assistance with relocation is available in approved cases. Provision is made for expenditure of $7.5 million in 1975-76, a reduction of $43.6 million on 1974-75. {:#subdebate-67-79} #### Other Welfare Programs {:#subdebate-67-80} #### Funeral Benefits A funeral benefit of up to $20 is payable to any person liable for the funeral costs of an age or invalid pensioner. A higher benefit of up to $40 is payable to an age, invalid or widow pensioner (including a woman in receipt of supporting mother's benefit) liable for the funeral cost of a spouse, a child or another such pensioner. For these benefits 'pensioner' means a person who satisfies, or had satisfied, the Australian Government pensioner 'fringe' benefits means test. {:#subdebate-67-81} #### Telephone Rental Concessions A reduction of one-third in the basic annual rental for a telephone is available to pensioners and recipients of some other benefits who meet certain requirements including, in most cases, a special means test on income and property. {:#subdebate-67-82} #### Australian Assistance Plan The Australian Assistance Plan was introduced in 1973-74 as an experimental program, involving community consultation and social action research to assist the Australian Government plan for the provision of welfare services (and the integration of these with existing welfare services). It is designed to provide, on a regional basis, social planning organisations to facilitate the co-ordinated development of welfare services in the community. These organisations, known as Regional Councils for Social Development, comprise representatives of the Australian, State and local governments, trade unions, employer groups, welfare consumer groups and non-government bodies concerned with social welfare, and advise the Australian Government on the development of welfare services and on the allocation of grants and subsidies within their regions. In 1975-76, grants will be made to 37 Regional Councils for Social Development to cover their administrative costs. Grants to cover the cost of employing Community Development Officers are made to these Councils, 14 of which have access to capitation funds and advise the Australian Government on the allocation of these funds on social welfare projects in their regions. Other bodies have received initiating grants to aid them in the task of establishing Regional Councils for Social Development. An on-going evaluation has been an important aspect of the Australian Assistance Plan experimental program; reports commissioned by the Social Welfare Commission were released towards the end of July 1975. Both the Commission and the Department of Social Security are continuously assessing the Plan's achievements and are consulting with a wide range of Australian, State and local government bodies and community groups on the future scope of the program. Following completion of the assessment task the Social Welfare Commission will be making recommendations to the Government in relation to the Australian Assistance Plan, which recommendations would form the basis for the drafting of legislation. The total cost of the Australian Assistance Plan is estimated at $7.4 million in 1975-76, compared with $4.2 million in 1974-75. {:#subdebate-67-83} #### Assistance to Homeless Persons The *Homeless Persons Assistance Act* 1974 provides, over a three-year period, for the payment of capital grants to voluntary agencies and to local authorities for approved projects (such as night shelters, reception centres and hostels) in order to upgrade and replace inadequate existing accommodation and to build new facilities for homeless persons. It also provides for the payment of a salary subsidy of 50 per cent of the salary of approved staff, an accommodation subsidy of 75 cents a person a day, and a meal subsidy of 25 cents a meal in respect of non-resident homeless persons. The program is to be reviewed on completion of the three-year period. The first payments under the Act were made in June 1975. It is estimated that expenditure in 1975-76 will be $4.4 million, $4.1 million more than in 1974-75. {:#subdebate-67-84} #### Assistance for Migrants The Australian Government makes grants to the Good Neighbour Council and other community agencies engaged in migrant integration activities. Expenditure in 1975-76 is estimated to be $1.6 million, $0.1 million more than actual expenditure in 1974-75. Aboriginal Advancement Programs nec This item includes expenditure on grants for Aboriginal community enterprises which is expected to increase by $5.4 million to $8.6 million in 1975-76. In addition, an amount of $0.5 million is to be provided for payment to the Aboriginal Enterprises Fund of the Aboriginal Loans Commission. Grants to the States, municipal authorities and Aboriginal Councils for the development of employment opportunities for Aboriginals are estimated at $19.6 million, an increase of $5.8 million over expenditure in 1974-75. Provision is also made for grants to voluntary organisations and Aboriginal communities (not elsewhere classified). {:#subdebate-67-85} #### General Administrative and Other Expenditure This expenditure comprises the general running and capital expenses of the Departments of Social Security (except those relating to health insurance where they are identifiable), Repatriation and Compensation (except those relating to repatriation institutions) and Aboriginal Affairs and of the Social Welfare Commission. §. HOUSING Outlays for housing are estimated to total $632.6 million in 1975-76. This total includes assistance to the States for welfare housing, for improvements in housing accommodation for Aboriginals, for housing in the Territories, for migrant accommodation and for the Australian Housing Corporation (including Defence Service Homes loans)._ {:#subdebate-67-86} #### Advances to States for Housing Under the terms of the 1973-1974 Housing Agreement the Australian Government is making advances to the States for welfare housing purposes during the five years 1973- 74 to 1977-78. The advances are repayable at low rates of interest over a 53 year period. The amount to be advanced to the States under the Agreement in 1975-76 is $364.6 million, compared with advances of $385.4 million in 1974-75. The initial allocation in 1974- 75 was S235 million but this was supplemented during the year by further advances totalling $150.4 million to take up some of the slack then appearing in the home building industry. Of the $150.4 million, $10.4 million was advanced in June 1975 on the basis that the advance would be taken into consideration in determining the total of 1975-76 advances. Details of the Agreement are outlined in the document *Payments to or for the States and Local Government Authorities 1975-76* published concurrently with the Budget Speech. {:#subdebate-67-87} #### Grants to States for Housing The *States Grants (Housing) Act* 1971-1973 authorises the provision of housing assistance to the States by way of basic grants of $2.75 million a year, payable for a period of 30 years in respect of their housing operations in each of the years 1971-72 and 1972-73. Payments in 1974-75 totalled $5.5 million; the same amount will be paid in 1975-76. A rental assistance grant of $1.25 million a year is payable in the five-year period 1971-72 to 1975-76 as a general contribution by the Australian Government towards the cost of reduced rents charged to needy families occupying housing authority dwellings. Further details of these arrangements are presented in the document *Payments to or for the States and Local Government Authorities 1975-76.* {:#subdebate-67-88} #### Australian Housing Corporation (Including Defence Service Homes Scheme) The Australian Housing Corporation Act was proclaimed on 24 June 1975. The Corporation's principal function is to lend money for the building or purchase of dwellings and the purchase of land to be used for dwellings. The Corporation also assumed responsibility for administering the Defence Service Homes Scheme from 24 June 1975, although existing funding arrangements for provision of loans and repayments by borrowers will continue until December 1975. From December 1975, principal repayments by Defence Service Homes borrowers will be retained by the Corporation for re-lending. The advance to the Corporation in 1975-76 includes $19.3 million for Defence Service Homes advances which with estimated principal repayments by borrowers should allow total new loans of $52.5 million to be made in the seven month period. Including the $70 million appropriated separately for the first five months of the year, the provision for Defence Service Homes advances in 1975-76 will be the equivalent of $122.5 million, a reduction of $7.5 million on the record amount advanced in 1974-75. An additional amount of $20 million is being advanced to the Corporation in 1 975-76. Together with the $25 million provided in 1974-75 but not spent, this will enable the Corporation to meet administrative expenses and undertake a range of new activities. The Australian Housing Corporation Act also provides for interest to be payable on the capital of the Corporation, which includes the net assets of the Defence Service Homes Scheme. An interest subsidy of $30 million reflecting the extent to which interest charged to borrowers, mainly under the Defence Service Homes Scheme, falls short of the long-term bond rate, is expected to be required by the Corporation to meet interest on capital in 1975-76. {:#subdebate-67-89} #### Home Savings Grants Under the *Homes Savings Grant Act* 1964-1975, a grant has been payable to eligible persons who have accumulated savings, over a period of at least three years, towards the purchase or construction of their first home. With the introduction of a scheme of tax deductibility of home loan interest with effect from 1 July 1974, the Government announced the phasing out of the Home Savings Grant Scheme in the 1973-74 Budget Speech. Grants will continue to be paid on homes contracted to be bought or built, or to be commenced by an owner-builder, on or before 31 December 1976, by persons who had already commenced to save by 21 August 1973. Expenditure on the Scheme is expected to decrease by S3. 2 million to $10.0 million in 1975-76. {:#subdebate-67-90} #### Housing Loans to Savings Banks The *Banks (.Housing Loans') Act* 1974 provided for a special appropriation of $150 million to be advanced to the savings banks and certain other banks for the purpose of making additional housing finance available to give a short-term stimulus to activity and employment in the home building industry. The whole allocation was fully committed by banks at the end of March 1975. An amount of $119.7 million was advanced to banks in 1974-75 to meet drawings against loan approvals and the balance is expected to be advanced between July and December 1975. Repayments of $15.0 million are estimated in 1975-76. Housing in the Territories Expenditure under this heading covers the construction of new houses and flats in the Australian Capital Territory and the Northern Territory, and advances to individuals for house construction. Of the $61.2 million provided in the Budget for dwelling construction in 1975-76, $20.9 million will be allocated to the Australian Capital Territory and $40.3 million to the Northern Territory. Of the latter amount, $38.8 million is for dwelling construction in Darwin by the Darwin Reconstruction Commission. In 1975-76 $30.6 million will be available for first mortgage lending by the A.C.T. Commissioner for Housing compared with $27.6 million in 1974-75. An amount of $13 million will be provided in 1975-76 for the N.T. Housing Commission. The increase of $7.7 million over expenditure in 1974-75 provides for the replacement of dwellings damaged by Cyclone Tracy. In addition, an advance of $4 million is to be made to the Northern Territory Home Finance Trustee for on-lending on first mortgages to eligible Darwin residents. {:#subdebate-67-91} #### Accommodation for Migrants Outlays by Commonwealth Hostels Limited on building works and equipment for migrant accommodation are estimated at $1.3 million in 1975-76, an increase of $0.6 million over 1974-75. {:#subdebate-67-92} #### Housing for Aboriginals This item includes grants to the States and to Aboriginal housing associations for the construction and purchase of homes for Aboriginal families. In 1975-76 a total of $13.8 million will he made available by way of payments to the States and $19.8 million in grants to Aboriginal housing associations. In addition, an amount of $7 million is provided for the Aboriginal Housing and Personal Loans Fund of the newly established Aboriginal Loans Commission for the purpose of providing loans to Aboriginals for the construction and purchase of dwellings and the purchase of land on which dwellings are to be erected. Payments to Aboriginal Hostels Limited to meet the cost of acquisition and operation of hostels for Aboriginals is estimated at $3.6 million in 1975-76. {:#subdebate-67-93} #### General Administrative Expenses Administrative costs associated with the housing functions of the Department of Housing and Construction are expected to total $3.9 million in 1975-76, a decrease of $9.5 million compared with 1974-75. As noted above, the Australian Housing Corporation has now assumed responsibility for the salaries and administrative expenses associated with the Defence Service Homes Scheme. Last year these costs were met by the Department. {:#subdebate-67-94} #### Other Recoveries and Repayments Included here are rents received in respect of Government-owned dwellings in the Territories. The level of rent receipts for the Northern Territory in 1974-75 and 1975-76 reflects a six months rent-free period in Darwin following Cyclone Tracy and concessional rentals to be applied from 1 July 1975 for damaged dwellings. Receipts from housing rentals in the A.C.T. are estimated to increase from $7.5 million in 1974-75 to $8.7 million in 1975-76. This increase reflects an increase in the number of Government-owned dwellings being rented in the A.C.T. and the Government's decision to increase rentals by an average of $1 per week from not later than 1 October. {: type="1" start="6"} 0. URBAN AND REGIONAL DEVELOPMENT NEC AND THE ENVIRONMENT Outlays for activities within this function, which include some of the major programs of the Australian Government in urban and regional development and environmental protection, are estimated to total $448.0 million in 1975-76 compared with $378.6 million in 1974-75. This increase reflects within the overall budgetary restraints the continuation of programs designed to improve the environment and the quality of life of the community. Details of the outlays are set out in the following table: Urban and Regional Development nec This heading brings together outlays of the Australian Government on urban and regional development which are not classified to other functions. These include financial assistance for selected growth centres, land agreements, the area improvement program and urban rehabilitation. Initiatives in urban public transport are discussed under 'Transport and Communication' in the function 'Economic Services'. Expenditure on national parks and the national estate is classified to the function 'Culture and Recreation'. {:#subdebate-67-95} #### Growth Centres The Budget provides an amount of $84.0 million in 1975-76 for the development of various growth centres, including Albury/Wodonga, the Sydney South-West Sector and Bathurst/Orange. The assistance to be provided in 1975-76 carries forward in a significant way initiatives designed over the longer term to improve the distribution of employment opportunities and the population. The growth centres program aims to raise the level of urban life by encouraging the development of a small number of regional growth centres to provide viable alternatives to the existing metropolitan centres. From the overall allocation, $38.6 million is expected to be provided for Albury/Wodonga. An amount of $4.6 million is being allocated for a project on land owned by the Australian Government at Holsworthy. The main purpose of the project is to investigate and demonstrate innovative planning, development, environmental and social concepts. Sites for dwellings, a small activity centre, a school site and open space areas are planned. {:#subdebate-67-96} #### Urban Rehabilitation In 1974-75 the Australian Government acquired 700 dwellings on 19 hectares of land in Glebe from the Anglican Church at a cost of $17.5 million. An initial instalment of 10 per cent of the purchase price was paid in 1973-74. An amount of $2.0 million has been provided in the Budget for the purpose of continuing the first stage of redevelopment. Expenditure on redevelopment in 1974-75 amounted to $1.5 million. The aims of the redevelopment are to preserve accommodation for low-income households, to achieve a suitably broad socio-economic mix in the population of the area and to preserve the historic landscape. An amount of $14.7 million is provided in the Budget for the acquisition and site development of land in the Wooloomooloo basin of Sydney. The site is to be developed for mainly residential purposes. In addition to this financial assistance, the Australian Government will transfer to the New South Wales Government, at no cost, land valued in excess of $11 million. {:#subdebate-67-97} #### Urban Flood Mitigation The Australian Government agreed during 1974-75 to provide assistance to Victoria for flood mitigation works at Seymour. The lack of legislative authority prevented disbursement of the funds in 1974-75 and it is now envisaged that the full amount of $200,000 will be paid to the State in 1975-76. An agreement was concluded with Queensland in 1974-75 under the *Urban and Regional Development (Financial Assistance) Act* 1974-75 to provide up to $450,000 for certain flood mitigation works on various creeks in the Brisbane metropolitan area. The full amount was paid to the State early in 1975-76. A further amount of $2.2 million is provided in the Budget for this purpose in 1975-76. {:#subdebate-67-98} #### Area Improvement Programs An amount of $17.7 million is included in the Budget for Area Improvement Programs. These programs were introduced originally in the western regions of Sydney and Melbourne and later extended to other regions in various States. The programs are intended to remedy deficiencies arising from a number of causes in the provision of public facilities in specific locations. The assistance will finance planning activities and projects such as municipal drainage schemes, improvements to waterways, management and provision of solid waste disposal systems, environmental protection, acquisition of parklands and open space, landscape design and construction, and public education activities on urban issues. Outlays in 1974-75 for these programs totalled $13.8 million. {:#subdebate-67-99} #### Land Agreements An amount of $64.6 million has been provided for the land agreements program. This involves provision of financial assistance to the States for land acquisition, servicing of land acquired (where these costs are not met from normal Government subventions) and urban renewal and development. The main aims of the program are to make land available for residential and associated uses at fair prices, and to facilitate the efficient planning and development of new urban areas. The assistance, chiefly in the form of loans, is conditional upon the establishment of Land Commissions or their equivalents to control or co-ordinate the acquisition and development of urban land. Land Commissions or their equivalents are now operating in five States and an agreement , with Queensland is imminent. {:#subdebate-67-100} #### Other Urban Development and Amenities Expenditures on land acquisitions and development in the Australian Capital Territory and the Northern' Territory are the major items included under this heading, with $37.4 million allocated for the Australian Capital Territory and $17.8 million for the Northern Territory. The latter figure includes $11.5 million for land servicing by the Darwin Reconstruction Commission. {:#subdebate-67-101} #### Development of Aboriginal Community Amenities The estimate of $17.9 million shown for this item is to meet the cost of programs of land purchase, water supply, sewerage and other facilities for Aboriginal communities. Expenditure on the provision and improvement of facilities is expected 'to amount to $15.7 million, including grants to the States and to non-government bodies ($7.1 million) and direct expenditure by the Australian Government (S8.6 million). An amount of $2 million will be paid to the Aboriginal Land Fund to assist Aboriginal communities to acquire land outside Aboriginal reserves. {:#subdebate-67-102} #### General Administrative Expenditure This item includes the administrative expenditure of the Department of Urban and Regional Development ($7.2 million, part), the Darwin Reconstruction Commission ($5.1 million) and the National Capital Development Commission ($20.7 million). The increase of $7.4 million in estimated expenditure in 1975-76 reflects the very substantial build-up in the involvement of the Australian Government in urban and regional development. The Albury/Wodonga Development Corporation became fully operational in 1974-75 and an amount of $270,000, representing one-third of the Corporation's estimated administrative expenses in 1975-76, is to be provided by the Australian Government. The remaining administrative costs are to be shared equally by New South Wales and Victoria. Protection of the Environment The Australian Government is associated with a variety of activities concerned with environmental protection and conservation, including environmental studies and support for national and international organisations. Steps towards establishing a National Air Monitoring Program are continuing in 1975-76 and $315,000 has been provided for this purpose. In addition an amount of $200,000 has been allocated for the payment of matching grants to the States for the purchase of air monitoring equipment. With the enactment of the Environmental Protection (Impact of Proposals) Act it is expected that several public hearings will be held during the year. An amount of $315,000 is being appropriated to meet the costs associated with those hearings. {:#subdebate-67-103} #### Sewerage and Garbage The estimates for 1975-76 include $114.9 million for the National Sewerage Program. Under this Program financial assistance is extended to the States to help eliminate the backlog of unsewered premises in major urban areas and to rectify inadequacies in reticulation, trunk sewers, purifying stations and treatment and disposal works. The Program commenced in 1973-74 in the larger cities and was extended to include smaller cities such as Bundaberg, Ipswich, Mt Isa, Sale, Warrnambool and Kalgoorlie in 1974-75. Certain research and planning activities also are now supported under the Program. Outlays on this Program in 1974-75 amounted to $117.7 million. Further details are contained in the publication *Payments to or for the States and Local Government Authorities 1975-76.* The estimates also include an amount of $15.3 million for the construction of sewerage facilities in new areas being developed in Canberra and various centres in the Northern Territory. {: type="1" start="7"} 0. CULTURE AND RECREATION The Australian Government provides funds for a wide range of cultural and recreational activities. The 1975-76 Budget includes outlays of 262.6 million for these purposes, $25.8 million more than in 1974-75. Details of outlays in 1973-74 and 1974-75, together with estimated outlays for 1975-76, are provided in the following table and associated commentary. {:#subdebate-67-104} #### Broadcasting Services The National Broadcasting and Television Services are programmed by the Australian Broadcasting Commission and broadcast through transmitters operated for the Postmaster-General's Department by the Australian Telecommunications Commission. Outlays on these services in 1975-76 are estimated at SI 64.9 million, an increase of $17.2 million on 1974-75. In addition to rises in wages and salaries and other operating costs, the increase reflects continued expenditure on colour television conversion and upgrading of radio and television services generally. Provision is made in the estimated expenditure for the introduction of the first stage of FM radio, the continuation of the experimental 'rock' station in Sydney (2JJ), and the Melbourne access station (3ZZ). An amount of $158,000 is available for continued experiments with ethnic broadcasting in both Sydney and Melbourne. {:#subdebate-67-105} #### Australian Broadcasting Control Board The Broadcasting Control Board is responsible for the regulation and control of broadcasting by commercial radio and television stations and for planning the development of radio and television services generally. A sum of $4.9 million is included in the Budget for the Board in 1975-76 compared with $4.5 million in 1974-75. {:#subdebate-67-106} #### Libraries Included under this heading are expenditures on the National Library of Australia, the Canberra Public Library Service and library services provided in the Northern Territory. Total outlays are expected to increase by $1.3 million in 1975-76, mainly because of higher running costs of the National Library. The Government has appointed a Committee of Inquiry into Public Libraries, the cost of which is estimated at about $50,000 in 1975-76. Under its terms of reference, the Committee will report on the roles of State, regional and municipal library services, community needs and the likely costs and manpower required to meet those needs. The Committee is expected to report to the Government by 1 December 1975. {:#subdebate-67-107} #### Australian National Gallery and Collection The allocation for the acquisition of works for, and the conservation of, the National Collection has been increased by $0.7 million to $5.8 million in 1975-76. This provision will allow the further development of the National Collection so that, when it opens, the National Gallery will exhibit not only works of Australian art but also a selection of other works, including works of twentieth century art, ethnic and primitive art and, wherever possible, masterpieces. Estimated expenditure in 1975-76 includes a provision of $3.0 million for the continuation of construction of the National Gallery. *Assistance to the Arts* The Australia Council, which was established as a statutory authority in March 1975, administers programs of support for the arts through Boards responsible for theatre, music, literature, Aboriginal arts, crafts, visual arts and radio, film and television. These Boards previously operated under the control of the Australian Council for the Arts. The amount provided for the Council's operations in 1975-76 is $23.7 million which will maintain broadly the level of support provided for similar purposes in 1974-75. In October 1974 the question of assistance to the performing arts was referred to the Industries Assistance Commission. For the purpose of the inquiry, performing arts include live performances of ballet, dance, opera, music, drama, music hall, vaudeville, puppetry and the like. The Commission is to report to the Government by 30 June 1976. 'Assistance to the Arts' also includes an amount of $0.7 million for the 1975-76 operations of the Public Lending Right Scheme, under which payments are made to Australian authors and publishers. Film industry development: included in the Budget estimates is an amount of $3 million for the Australian Film Commission (General Activities Branch). From July 1975 the Australian Film Commission assumed the functions and commitments of the former Australian Film Development Corporation, together with about $4.5 million in assets. The functions of the Commission are to encourage the making, promotion, distribution and exhibition of Australian films and television programs. {:#subdebate-67-108} #### Archives The Government will continue to develop, preserve and maintain archival resources that are of national significance or of general public interest. The 1975-76 Budget provides $5.7 million for these purposes. This total includes $1.6 million for the Archives building program, relating in the main to the construction of repositories at Perth and Collinswood (S.A.). {:#subdebate-67-109} #### Sporting and Recreational Facilities Expenditure on the Australian Government's programs to assist and encourage leisure, sport, youth and recreation activities within the community is estimated at $12.2 million in 1975-76, $4.1 million more than in 1974-75. An amount of $6.3 million has been provided under the Government's Capital Assistance for Leisure Facilities Program for community sporting, arts/cultural and leisure facilities. Grants are made through the States in the majority of cases and are allocated on a needs basis in accordance with the Government's priorities. States, local government and/or voluntary bodies normally contribute towards the cost of projects, although this is not mandatory. Growth in activity under youth, sports, national fitness and community recreation programs is expected to raise expenditure to $3.4 million in 1975-76. In addition to planning and research studies, assistance is provided for travel by sporting teams, for the introduction of suitable programs and as grants-in-aid to organisations. Provision is also made for the payment of $1.4 million to the YMCA Canberra Incorporated as part of a loan of $1.6 million for the construction of a 200 bed hostel. The hostel will provide low tariff accommodation, mainly for young people. {:#subdebate-67-110} #### International Women's Year The Government has allocated a further $1.3 million in 1975-76 for the continuation of special activities related to the objectives of the United Nations International Women's Year. The 1974-75 Budget contained an initial provision of $2.0 million for this purpose. The funds are allocated on the advice of a National Advisory Committee. {:#subdebate-67-111} #### Wildlife and National Parks An estimated $1.8 million will be provided in 1975-76 by way of assistance to the States for the acquisition of land for nature conservation purposes. Also included in the 1975-76 Budget is an amount of $1.1 million for the continuation of the National Parks and Wildlife Research Program, which commenced in 1974-75. This program includes an ecological survey of Australia and research into, and surveys of, flora and fauna, with emphasis on the protection of endangered species. Provision of $1.0 million also has been made for the first full year of operation of the Australian National Parks and Wildlife Service. {:#subdebate-67-112} #### National Estate The Australian Heritage Commission has been established recently to advise on the protection of Australian heritage property, to review and report on the progress of action taken and to advise on the allocation of funds. This Commission will replace the Interim Committee on the National Estate which performed similar functions in 1974-75. An amount of $250,000 has been provided for the administrative expenses of the Commission in 1975-76. The Budget includes $5.1 million for grants to the States and National Trusts and for expenditure in the Territories for the preservation and enhancement of the National Estate. The broad objective of the program is to identify, preserve and enhance land and buildings of historical or other interest. Expenditure under the program will finance the acquisition of land and buildings, the restoration, preservation and enhancement of properties, and studies related to the National Estate. *Cultural and Recreational Activities in the Territories nec* Included here is a range of mainly 'State' and municipal-type expenditures relating to such activities as the construction and/ or maintenance of parks and gardens, halls, swimming pools and theatres, together with assistance to cultural organisations in the Territories. Expenditure on these activities is estimated at $15.3 million in 1975-76, $3.8 million more than in 1974-75. {: type="1" start="8"} 0. ECONOMIC SERVICES This function brings together the various services and categories of assistance provided by the Australian Government to industry and the community generally. It embraces the provision of economic infrastructure, the regulation of private sector economic activity and more direct forms of Government participation in economic activity. {: type="A" start="A"} 0. TRANSPORT AND COMMUNICATION The Australian Government is heavily involved in providing transport and communication services; total outlays in 1975-76 are estimated at $1,280.9 million, a decrease of $0.8 million. {:#subdebate-67-113} #### Communication The Vernon Commission of Inquiry into the Post Office recommended that the Post Office be replaced by two Commissions - the Australian Postal Commission and the Australian Telecommunications Commission. Since 1 July 1975 postal and telecommunications services previously undertaken by the Postmaster-General's Department have been provided by these two statutory authorities. Both Commissions are to operate on a commercial basis and have the financial objective of generating, by way of charges for services, such amounts as are necessary to meet all operating costs plus at least 50 per cent of total capital expenditure. The remainder is to be financed through interest bearing advances from the Budget. These advances in 1975-76 are estimated at $14 million for the Australian Postal Commission and $403 million for the Australian Telecommunications Commission. The responsibilities provided for in the Wireless Telegraphy Act will continue to be exercised by the Postmaster-General's Department. These responsibilities include the regulation of the operations of radio communications stations in Australia; there are more than 222,000 licensed operators. {:#subdebate-67-114} #### Air Transport Advances by the Australian Government to Qantas Airways Ltd and the Australian National Airlines Commission mainly represent the passing on of proceeds of loans raised by the Government on behalf of the airlines to assist in the financing of aircraft. Amounts repaid by the airlines in respect of past loans are in turn repaid to the lenders. The proposed advances to Qantas of $26 million in 1975-76 are to assist in purchasing two B747 aircraft. Advances can also include new capital provided to the airlines from time to time, but no such provisions are to be made in 1975-76. The Department of Transport provides many services to the air transport industry, including the provision and operation of over 100 airports and associated navigational facilities. These activities account for the major portion of administrative and operational expenditure and outlays on buildings, works and equipment. Included in the expenditure estimates for 1975-76 are $2.7 million to complete work on the Brisbane International Terminal and the Hobart domestic terminal, $1.7 million for further work on the Sydney International Terminal and $6.0 million for further payments on three new F28 aircraft for testing of air navigation facilities. For many years the Australian Government has paid air services subsidies for 'essential' rural services to country areas and 'developmental' services in outback areas. Subsidies for 'essential' rural services ceased on 30 June 1974 and 'developmental' services subsidies are to be phased out by 30 June 1977. In the 1973-74 Budget, the Government announced its intention to increase the rate of recovery of costs of providing airport and airways facilities to 80 per cent by 1977-78. At the time, charges to users of these facilities were recovering only about 50 p:r cent of costs. Despite increases in air navigation charges of 15 per cent in 1973-74 and 1974-75 and tight restraint on costs, very little progress has been made towards achieving the Government's objective. At the present level of charges only about 55 per cent of costs are being recovered. The Government proposes to pursue its objective of 80 per cent recovery by 1977-78. To this end, action will be taken to raise the cost recovery level in 1975-76 to 70 per cent, which was the anticipated level of recovery for this year at the time the 80 per cent objective was set. This will require an increase in air navigation charges substantially greater than the maximum 15 per cent annual increase referred to in the 1973 Airlines Agreement. However, the Agreement provided for a review of progress towards the 80 per cent cost recovery objective to be completed by September 1975 and requires the Government and the two major domestic airlines to negotiate such changes to the Agreement as are necessary to ensure attainment of the objective. The main element in an estimated increase of $9.3 million in other recoveries is an increase of $5.6 million in airport terminal rentals. This increase is largely the result of increases in levels of charges introduced during 1974-75. {:#subdebate-67-115} #### Road Transport Under the *Commonwealth Aid Roads Act* 1969 grants totalling $1,252 million were provided to the States over the five years 1969-70 to 1973-74. Continuing arrangements for the three years 1974-75 to 1976-77 are embodied in three Acts - the *National Roads Act* 1974, the *Roads Grants Act* 1974, and the *Transport (Planning and Research) Act* 1974. Together, these Acts appropriated $350 million for roads in 1974-75, $369 million in 1975-76 and $407 million in 1976-77. Following the Premiers' Conference on 14 February 1975, the Prime Minister announced that an additional $30 million ($9.2 million for National Roads and $20.8 million for other road categories) in road grants would be made available to the States in 1974-75 to maintain employment opportunities. In the event, the total available grants were not fully drawn upon and total grants to the States for roads, including grants under the Transport (Planning and Research) Act, amounted to $368 million in 1974-75. The Government has decided that a further additional grant of $64 million will be made in 1975-76 as an offset against roads cost increases which have occurred at rates higher than allowed for and embodied in the scheduled appropriations of the roads Acts. This additional grant will supplement the National Roads 1975-76 appropriation of $130 million by $23 million and the 1975-76 Roads Grants appropriation of $229.9 million by $41 million. Additional grants will not be provided under the Transport (Planning and Research) Act in 1975-76. In 1974-75 a residual sum of $278,557, which was originally appropriated under the *States Grants (Beef Cattle Roads) Act* 1968, was paid to Queensland under the *States Grants (Beef Cattle Roads) Act* 1974. Payments for beef roads are now made under a specific schedule in the *Roads Grants Act* 1974. A separate amount of $2.6 million has been provided for the maintenance of existing beef cattle roads in the Northern Territory. In addition to the above outlays, $17.0 million has been provided for roads and highways in the Northern Territory and $14.9 million for roads in the Australian Capital Territory. An amount of $3.9 million has been included in the estimates for the acquisition of equipment to upgrade the Canberra bus service and $2.4 million for the purchase of transport pool vehicles for use in the Australian Capital Territory. Outlays on other road construction and maintenance include $13 million in assistance attributable to, or to cope with, the effects of the Tasman Bridge disaster, including the restructuring of the Bridge to provide an additional traffic lane. An amount of $0.9 million is to be provided to Tasmania for preliminary design work on the second Derwent River crossing at Dowsing Point. The Australian Government has announced its intention to finance the cost of this second river crossing for Hobart. {:#subdebate-67-116} #### Rail Transport An amount of $51.9 million is provided in the estimates to finance the capital works program of the Australian National Railways. The program covers the requirements of the former Commonwealth Railways, the Tasmanian Railways, which became the responsibility of the Australian National Railways on 1 July 1975 under an agreement between the Australian and Tasmanian Governments and the South Australian non-metropolitan railways, which will also become the responsibility of Australian National Railways if the Australian and South Australian Parliaments ratify the agreement made between the Australian and South Australian Governments in May, 1975. **Major projects** in the program include the standard gauge railway lines between Tarcoola and Alice Springs and Adelaide and Crystal Brook. The estimates provide a further $40 million to meet the operating losses of the Australian National Railways in 1975-76. Outlays in 1974-75 included payments of $10.0 million to South Australia in connection with the transfer of the State's non-metropolitan railways and $5.0 million to Tasmania under arrangements for the transfer of the Tasmanian Railways. {:#subdebate-67-117} #### Urban Public Transport As part of its program to improve living conditions in cities, the Government is providing financial assistance to the States under the Urban Public Transport Agreement to meet two-thirds of the cost of approved urban public transport projects. The objectives of the program are to improve the quality, capacity, efficiency and frequency of public transport in Australian cities. The *States Grants (Urban Public Transport) Act* 1974 and *Appropriation (Urban Public Transport) Act* 1974, respectively, appropriated funds for the 1973-74 and 1974-75 approved programs. A further sum of $2.5 million will be provided in 1975-76 to meet the Australian Government's share of cost increases on approved projects completed before or during 1975-76. The total assistance so far agreed to by the Government under the Agreement is $140.5 million, plus $1.0 million under the *Urban Public Transport (Research and Planning) Act* 1974, of which the draw-down to date has been $45.3 million. The total funds requirement for 1975-76 is estimated at $43.0 million, including a final outstanding sum of $197,000 to reimburse the States for their 1973-74 expenditure on urban public transport research in accordance with the *Urban Public Transport (Research and Planning) Act* 1974. Under this Act reimbursement of $230,091 was also paid in 1974-75 for the 1973-74 program. Urban public transport planning and research funds for the period 1974-75 to 1976-77 are provided under the *Transport (Planning and Research) Act* 1974 (see 'Road Transport'). Shipping and Harbours $56.9 million has been included in the Budget estimates for advances to the Australian Shipping Commission in 1975-76, compared with $80.8 million last year. Expenditure during 1975-76 will be primarily on commitments previously entered into by the Commission. These include contracts for the purchase of six bulk carriers (two 140,000 dwt, two 120^000 dwt and two 25,000 dwt), one cellular container vessel, one general cargo vessel, some associated seaborne and onshore equipment and a container terminal at Botany Bay. The Commission is making a repayment of $1.0 million in 1975-76 in respect of an earlier loan. The estimates provide for the expenditure in 1975-76 of $2.4 million on preliminary work associated with the construction of a dry dock at Newcastle. The proposed dry dock represents the Australian Government's contribution to a joint Australian-New South Wales Corporation to run all government ship repair and shipbuilding facilities at Newcastle. 'Other' outlays of $12.1 million in 1975-76 include $6.1 million for capital expenditure, mainly by the Department of Transport on a navigational aids vessel, navigational aids and facilities. Also included are subsidies payable to the Australian Shipping Commission of $1.0 million for the 'Empress of Australia' passenger service between Tasmania and the mainland and $3.9 million on northbound general cargo from Tasmania to the mainland. {:#subdebate-67-118} #### Pipelines The advance of $67.3 million to be made to the Pipeline Authority in 1975-76 includes an amount of $14.0 million for interest payable in respect of outstanding advances to the Authority, the balance being for expenditure on construction of the Moomba-Sydney pipeline, which is due to be completed early in 1976. {:#subdebate-67-119} #### General Administrative and Other Expenditure An amount of $21.9 million is provided in 1975-76 for the running expenses of the Department of Transport (excluding the expenses relating to the provision of air transport services and administration of assistance to the shipbuilding industry), of which $14.7 million represents wages and salaries. {:#subdebate-67-120} #### Other Recoveries Light dues, which are charges on commercial shipping for the use of marine navigational aids provided by the Australian Government, are the major source of recoveries. The current levy is 3 cents per net registered ton per quarter and is estimated to raise $15.4 million in 1975-76. {: type="A" start="B"} 0. WATER SUPPLY AND ELECTRICITY The following table gives details of Budget outlays on water supply and electricity projects; these outlays are estimated to total $73.4 million in 1975-76, an increase of $17.3 million or 31 per cent compared with 1974-75. {:#subdebate-67-121} #### Urban Water Supply The Australian Government is providing financial assistance to the Queensland Government to help finance the construction of the Ross River Dam, Stage 2, near Townsville. Of the total grant of $2.6 million, $1.4 million is expected to be made available in 1975-76. The Budget includes an amount of $9.7 million for assistance to South Australia for water treatment works for metropolitan Adelaide. The scheme is designed to upgrade the water quality standards of the Adelaide water supply; $4.4 million was provided for this purpose in 1974-75. An amount of $0.9 million is being provided to Tasmania in 1 975-76 toward the cost of a regional water supply system in the north-western region of the State. Included in the estimates is an amount of $10.4 million for water supply works in the Australian Capital Territory. Work on the Googong Dam, which will provide additional water storage for Canberra, commenced in 1974-75; the total cost of the project is estimated at $30 million. Completion of the project will provide water storage capacity for the Canberra and Queanbeyan area capable of sustaining a population of around 400,000. Expenditure on the Googong Dam in 1975-76 is estimated at $4 million. {:#subdebate-67-122} #### Snowy Mountains Scheme The diminishing level of outlays on the Snowy Mountains Scheme over recent years reflects progress towards completion of the Scheme. The proposed payment of $4.7 million to the Snowy Mountains Hydro-Electric Authority will enable the Authority to provide permanent facilities for the operation and maintenance of the Scheme and to clean up construction sites. {:#subdebate-67-123} #### Gladstone Power Station The Australian Government is providing financial assistance to the Queensland Government, by way of loans, to help finance the construction of a thermal power station at Gladstone in central Queensland. Assistance provided by the Australian Government for the project is proportionate to the total cost of the power station in the ratio of 80 to 155. Payments of $26.6 million and $32.4 million were made in 1973-74 and 1974-75 and it is estimated that a further $37.0 million will be required in 1975-76. *Electricity Supply in the Territories* The increase of $4.8 million in estimated expenditure in 1975-76 reflects the work being undertaken in Darwin by the Darwin Reconstruction Commission. The estimate includes provision for the rehabilitation of electricity reticulation in Darwin, the servicing of sites for new housing and Stage 6 of the Stokes Hill Power Station. {:#subdebate-67-124} #### Repayments Repayments under this heading in 1975-76 are estimated at $8 million, consisting of repayments of $5 million by the Snowy Mountains Hydro-Electric Authority, and $3 million by the Tasmanian Government in respect of assistance provided for hydroelectric power development. {: type="A" start="C"} 0. INDUSTRY ASSISTANCE AND DEVELOPMENT The Australian Government assists industry through a variety of measures, including direct financial assistance, taxation concessions, guaranteed home price arrangements, financial guarantees and the customs tariff. Net direct assistance from the Budget, i.e. after deducting amounts collected by way of industry levies and charges such as the wool tax and the meat export charge, is estimated at $471.5 million in 1975-76, a decrease of $308.2 million compared with 1974-75. Direct industry assistance takes the form of bounties and subsidies, reconstruction schemes, contributions to research and promotion programs, and other payments to or for the benefit of industry. It includes also some outlays by Government departments and instrumentalities (e.g. Department of Overseas Trade, Department of Manufacturing Industry, Department of Agriculture and the Australian Tourist Commission); such organisations provide many services either free of charge or at prices which do not fully recover the cost incurred. Apart from these direct outlays from the Budget, substantial additional assistance, as noted above, has been provided through the Budget by way of special taxation concessions which, as they result in a reduction of Government revenues, are as much a call on the Budget as direct outlays. The amount of revenue forgone in 1974-75 through the main taxation concessions for which data are available is estimated to have been $244 million. Further information relating to these taxation concessions is provided at the end of the commentary on this sub-function. Outlays under some other functional headings in this Statement also assist industry. Examples include the provision of airports and airways facilities for the aviation industry, assistance for the development of the film and television industry, some specific purpose payments to the States, expenditure to improve the defence capacity of industry, and part of the expenditure on the CSIRO. Outlays for net direct industry assistance in recent years, together with estimates for 1975-76, are shown in the following table and discussed in the brief commentary which follows. {:#subdebate-67-125} #### Forestry and Fishing Industries {:#subdebate-67-126} #### Softwood Forestry Development Under the *Softwood Forestry Agreements Act* 1972 the Australian Government is providing financial assistance for a five-year planting program ending on 30 June 1976. As in the previous Agreement, the assistance provided is by way of interestbearing loans repayable over twenty-five years, with repayments and the payment of interest to commence approximately ten years after the date of each advance. Payments amounting to $21.3 million have been made to the States under this Agreement up to 30 June 1975. Payments of $7.1 million were made in 1974-75 and it is estimated that further payments of $7.9 million will be made in 1975-76. {:#subdebate-67-127} #### Karumba Prawn Facilities The Australian Government has offered a grant of $1.45 million to the Queensland Government towards the provision of an all-weather access road and a loan of $2.8 million towards the cost of providing water supply and sewerage facilities to assist in the development of the prawning town of Karumba on the Gulf of Carpentaria. Of these amounts, $1.0 million and $0.7 million, respectively, are to be provided in 1975-76. {:#subdebate-67-128} #### Agricultural and Pastoral Industries {:#subdebate-67-129} #### Wool Industry The Government has authorised the Australian Wool Corporation to continue to operate a minimum reserve price equivalent to 250 cents per kilo clean for 21 micron wool during the 1975-76 selling season. The Corporation will continue to regulate the flow of wool on to the auction market to improve the balance between quantities of wool supplied and demanded and will exercise a 'pot-holing* function to reduce the losses due to random movements in prices when the market is above the floor. An amount of $80 million has been provided against the possibility of the Government having to support the Corporation's activities in 1975-76; $289 million was provided to the Corporation in 1974-75 (including $13 million provided from the Corporation's Working Capital Trust Fund). The wool tax (8 per cent on the gross return from wool sold) is estimated to yield $74 million in 1975-76. This includes a special levy of 5 per cent on the gross return from wool sold to offset any losses that may arise from the operation of the reserve price scheme. It is estimated that an amount of $46.25 million will be collected and paid to the Corporation's Market Support Fund. Of the estimated expenditure of $47.75 million in 1975-76 for wool research and promotion, $27.75 million is expected to be contributed by the industry out of the proceeds of the Wool Tax. {:#subdebate-67-130} #### Wheat Industry The sixth Wheat Industry Stabilisation Scheme commenced with the marketing of the 1974-75 crop. The new Stabilisation Scheme covers the seasons 1974-75 to 1978-79. No stabilisation payments by the Australian Government are due in 1975-76 because export prices have been at a higher level than the stabilisation price for the 1974-75 season. The wheat growers' contribution for 1975-76 will be $30 million, which is the maximum amount provided for under the *Wheat Industry Stabilisation Act* 1974. {:#subdebate-67-131} #### Dairy Industry The phasing out of butter and cheese bounties and the processed milk products bounty was completed on 30 June 1975. Carryover payments in 1975-76 are estimated at $1.3 million. An amount of $19.2 million is included for advances to the States under the Dairy Adjustment Program. This Program, which expires on 30 June 1976, continues and broadens the Marginal Dairy Farms Reconstruction Scheme, which it replaced, and provides assistance to develop and diversify dairy farms and assist their conversion to refrigerated bulk milk supply. The question of assistance to the dairy industry after 1975-76 is the subject of an Industries Assistance Commission inquiry. {:#subdebate-67-132} #### Fruit Industry The Australian Government guarantees minimum returns under stabilisation schemes for apples and pears and for dried vine fruits. No Australian Government contribution in respect of dried vine fruits is expected to be required in 1975-76. Both schemes are currently being reviewed by the Industries Assistance Commission. For the 1974 export season, the Australian Government joined with the Governments of Tasmania, Western Australia and Queensland in underwriting the returns on certain apple exports, the Australian Government meeting half the costs of underwriting returns on apples exported 'at risk' during 1974 to the United Kingdom and Europe. This undertaking was subject to a maximum Australian Government contribution of $2.6 million; in the event, the Australian Government contribution amounted to $2.1 million in 1974-75. The Australian Government has agreed with -the Governments of Victoria, Western Australia, South Australia, Queensland and Tasmania to provide similar assistance for the 1975 export season. An amount of $1.2 million has been included in the Budget estimates for this purpose. Under the Fruitgrowing Reconstruction Scheme introduced in 1972 the States were offered $4.6 million in financial assistance towards a scheme for the removal of trees producing fruit deemed to be surplus to long-term market requirements. Assistance is available only to orchardists experiencing or threatened by financial difficulties. Expenditure in 1974-75 was $1.1 million and the estimate for 1975-76 is $0.75 million, which would bring total expenditure under the Scheme to $3.1 million. The closing date for applications for assistance is 31 December 1975. {:#subdebate-67-133} #### Poultry Industry Expenditure on stabilisation and research in the poultry industry is mostly financed from industry levies which flow back to the industry through State egg marketing authorities in accordance with the egg industry stabilisation scheme. {:#subdebate-67-134} #### Cattle, Sheep and Pig Meat Industry The Australian Government is making up to $19.6 million available to the States in 1975-76 for a joint scheme to provide carry-on finance to certain beef producers, at concessional rates of interest. To qualify for assistance producers would1 need to be judged to be viable under normal market conditions, lack finance to carry on through the present slump and be unable to obtain carry-on funds from normal sources. Outlays for meat export inspection services are estimated at $17.9 million in 1975-76, the same as expenditure in 1974-75. These outlays will be partially offset by revenue raised from the charge of 1 cent per lb on all meat exports. This charge is estimated to yield $13.6 million in 1975-76. In August 1974 the Australian Government announced its approval of the establishment of a Bureau of Animal Health for the purposes of streamlining animal health activities aimed at disease eradication and prevention. The operation of the meat export inspection services is a function of the Bureau. In response to more stringent requirements by overseas countries on the entry of meat, the Australian Government has, since January 1970, assisted the States in financing an intensive campaign for the eradication of bovine brucellosis and tuberculosis. By June 1975 $19.5 million had been paid to the States, including $6.5 million in 1974-75. A further $8.2 million is provided in the estimates for 1975-76. In 1973-74 the Government introduced a charge of 0.6 cents per lb on all beef exports to recoup expenditure incurred on this campaign. Revenue from the charge amounted to $7.3 million over the two-year period 1973-74 to 1974-75 and is estimated at $6.5 million in 1975-76. A report by the Industries Assistance Commission on brucellosis and tuberculosis is currently being considered by the Government. Expenditure on research and promotion is estimated at $8.6 million in 1975-76 compared with $6.5 million in 1974-75. Some $6.4 million of this expenditure will be financed by the industry's livestock slaughter levies. {:#subdebate-67-135} #### Outlays Not Allocated to Specific Agricultural and Pastoral Industries {:#subdebate-67-136} #### Rural Lending The Australian Government proposes to advance $8 million to the Commonwealth Development Bank in 1975-76 to augment the Bank's capacity to lend to beef producers whose capital structures have been seriously affected by recent trends in beef prices hut who, in the opinion of the Bank, still remain viable. This follows an advance of $20 million for the same purpose in 1974-75. {:#subdebate-67-137} #### Rural Reconstruction Scheme Under the States Grants (Rural Reconstruction) Act assistance is made available to the States on a 75 per cent loan/ 25 per cent grant basis for a scheme which embraces debt reconstruction, farm build-up and rehabilitation. By 30 June 1975, $159.8 million had been paid to the States and a further $30 million has been provided for 1975-76. {:#subdebate-67-138} #### Fertilizer Bounties The Phosphate Fertilizer Bounty Act which provided for the payment of a bounty inrespect of superphosphate and ammonium phosphate produced and sold for use in Australia expired on 31 December 1974. The Government referred the question of further assistance to consumers of phosphatic fertilizers to the Industries Assistance Commission for an interim report by 31 July 1975 and a full report by 31 July 1976. Bounty payments under the scheme amounted to $29.5 million in 1974-75. The Nitrogenous Fertilizer Subsidy was introduced in 1966 and is payable on nitrogen contained in natural sodium nitrate and in manufactured nitrogenous substances produced in Australia and sold for use in Australia as a fertilizer. The Act under which the subsidy was paid was due to expire on 31 December 1974, but was extended to 31 December 1975 pending a report on the subsidy by the Industries Assistance Commission. It is estimated that $6.5 million will be paid between 1 July 1975 and 31 December 1975. {:#subdebate-67-139} #### Agricultural Extension and Research Since 1948-49 annual grants have been made to the States to promote improved farm practices in the dairy industry and further grants have been provided, since 1952-53, for expansion in the States of agricultural advisory services generally. In addition to the funds provided to the States, a small amount is spent directly by the Australian Government on projects nominated by the States which are of national interest. Up to 30 June 1975 about $61 million had been provided for these purposes; a further $9.1 million is included in the estimates for 1975-76. {:#subdebate-67-140} #### Irrigation and Other Pastoral Water Projects Expenditure under this heading comprises Australian Government financial assistance to the States for rural water conservation and irrigation purposes and flood mitigation. The main expenditures provided for in 1975-76 represent continuing assistance for the Kinchant Dam in Queensland ($2.8 million), the Bundaberg Irrigation Scheme in Queensland ($2.5 million) and the Dartmouth Dam on the Mitta Mitta River ($12.0 million). The estimates also include provision of $2.0 million for flood mitigation works on coastal rivers in New South Wales and $120,000 towards the cost of a flood mitigation scheme on the Proserpine River, Queensland. Payments to the States estimated at $5.9 million in 1975-76 are provided for as part of the three-year program of surface water measurement and underground water resources investigations commenced in 1973-74, and the two-year program of water quality assessment commenced in 1974-75. Additional information on these projects is contained in the White Paper entitled *Payments to or for the States and Local Government Authorities 1975-76.* {:#subdebate-67-141} #### Land Development Projects {:#subdebate-67-142} #### Soil Conservation An interim program of financial assistance for State soil conservation programs and concurrent studies is being undertaken by the Australian Government in the general context of an orderly approach to land management. The program is extending over a two-year period with grants totalling $2.5 million being provided to the States. $154,000 was spent in 1974-75 and $1.7 million has been provided to the States in 1975-76. The balance of the total grants was to be allocated to New South Wales which has elected not to participate in the program. A provision of $230,000 has been made for Australian Government soil conservation studies. {:#subdebate-67-143} #### Brigalow Lands Development Scheme The *Brigalow Lands Agreement Act* 1962-67 approves an agreement with Queensland for the provision of financial assistance to that State for land development in the Fitzroy River Basin. The Act provides for assistance, subject to an overall limit of $23 million, to finance expenditure incurred by the State on specified works during the thirteen years ending 30 June 1975. The assistance has been in the form of interestbearing loans repayable over twenty years. Payments amounting to $16 million have been made to Queensland under this Agreement up to 30 June 1975, with payments of $0.5 million made during 1974-75. Outlays in 1975-76 under the scheme are estimated at $1.7 million. {:#subdebate-67-144} #### Locust Control The Australian Government has agreed to finance a Plague Locust Control Commission on a dollar for dollar basis with the States of New South. Wales, Victoria, South Australia and Queensland up to a maximum Australian Government/ State expenditure of $500,000 per annum. In October 1973 the Government entered into an agreement with the States of New South Wales, Victoria, Queensland and South Australia to share on a dollar for dollar basis the costs of plague locust control in 1973-74. Similar agreements were entered into in December 1974 and June 1975 with the States of Queensland and New South Wales in respect of spur-throated locust control in 1974-75. The total Australian Government commitment to the three programs amounted to $396,000 in 1974-75 and is estimated to be $525,000 in 1975-76. {:#subdebate-67-145} #### Mining Industry {:#subdebate-67-146} #### Uranium Exploration and Development In October 1974, the Government decided that all new exploration for uranium in the Northern Territory would be carried out by the Australian Atomic Energy Commission as agent of the Government; $4.7 million is provided for exploration activities in 1975-76. About $0.7 million is provided for interest payable on overdraft borrowings made by the Commission to finance its obligations under the underwriting agreement with Mary Kathleen Uranium Pty Ltd. {:#subdebate-67-147} #### Petroleum and Minerals Authority On 24 June 1975 the High Court handed down a decision declaring the Petroleum and Minerals Authority Act invalid in that the proposal for legislation had not met all the requirements of the Constitution relating to a double dissolution of Parliament and consequently could not validly be considered by the joint sitting. In 1974-75, $50 million was advanced to the Petroleum and Minerals Authority to enable it to carry out its responsibilities. Following the High Court decision, the balance of funds held by the Authority was repaid to the Government and this repayment of $46.2 million is included in the 1975-76 estimates. {:#subdebate-67-148} #### Petroleum Search Subsidy The Petroleum Search Subsidy Scheme expired on 30 June 1974. An amount of $5.9 million was paid in 1974-75 and $0.2 million is included in the 1975-76 Budget for approved exploration programs completed before 30 June 1974. {:#subdebate-67-149} #### Other Mining The reason for the increase in this item is the inclusion in the 1975-76 figures of an amount of $9.6 million to meet firm commitments of the former Petroleum and Minerals Authority. {:#subdebate-67-150} #### Manufacturing Industry Direct assistance to manufacturing industry is estimated to decrease by $27.3 million to $140.5 million in 1975-76. {:#subdebate-67-151} #### Shipbuilding Assistance The Government's shipbuilding policy provides for a phased reduction in the level of assistance to an eventual long-term rate of 25 per cent by December 1980. Under the *Ship Construction Bounty Act* 1975, future assistance will take the form of a direct bounty to shipbuilders; previously the subsidy was provided by the Government buying ships and selling them to shipowners at a lower price under the Australian Shipping Commission Act. The assistance, which is payable in respect of the construction of vessels in Australia following a case-by-case examination by the Australian Shipbuilding Board, is estimated at $30.0 million under both schemes in 1975-76. This will subsidise the construction of about 77 vessels, 52 of which have already been ordered or are being constructed, while the remainder are expected to be ordered in 1975-76. A further $1.1 million is included for the administrative expenses of the Board. {:#subdebate-67-152} #### Industrial Research and Development Grants The Industrial Research and Developments Grants scheme was introduced in 1967 to encourage research and development expenditure by Australian companies. Grants under the scheme are based on increases in eligible research and development expenditure above the levels of a (moving) base period. In general the grants are provided for increases in research and development expenditure up to $50,000 a year, with the rate of grant being 50 per cent or such other rates as the Minister determines. Selective grants on expenditure greater than $50,000 a year may be made if the expenditure meets certain national interest criteria. A review of the scheme will be completed shortly. Expenditure on the present scheme is estimated at $17 million in 1975-76. A further $0.4 million is included for the administrative expenses of the Industrial Research and Development Grants Board. {:#subdebate-67-153} #### Refrigerator Compressor Bounty Following a recommendation of the Industries Assistance Commission, the Government introduced a bounty of up to $5 for each compressor of 1.5 kw or less, for use as a refrigeration component in the manufacture of goods that are subsequently used in Australia. An amount of $3.9 million was provided in 1974-75 and the bounty is expected to cost $2.0 million in 1975-76. {:#subdebate-67-154} #### Book Bounty An amount of $6 million has been provided for estimated book bounty payments in 1975-76. This includes a small amount for the Government's recent decision to extend the bounty to law reports which satisfy the eligibility criteria. {:#subdebate-67-155} #### Export Development Grants Legislation establishing the new Export Development Grants Scheme was passed in 1974. The Scheme replaces the former export incentive grants and market development rebate scheme. Residual payments under the former scheme are expected to amount to $33.0 million in 1975-76. Expenditure of $27.5 million in 1975-76 is expected under the new Scheme, which is designed to encourage firms to seek and develop overseas markets and to participate in Australian Government sponsored trade promotions. Grants under the Act are payable on the basis of eligible export market development expenditure in respect of goods and services substantially of Australian origin. The Scheme is administered by the Export Development Grants Board. {:#subdebate-67-156} #### Structural Adjustment Assistance The Government is continuing its structural adjustment assistance scheme introduced to help eligible firms and industries adjust to the effects of new Government initiatives, such as tariff and similar changes, which are desirable in the national interest. Assistance to eligible firms affected by prescribed changes is available in the form of consultancy grants, loan guarantees and closure compensation. Special assistance for firms in non-metropolitan areas affected by prescribed changes is also available under certain conditions. An amount of $3 million has been provided for expenditure in 1975-76. {:#subdebate-67-157} #### Other Assistance Included in the amount of $3.0 million provided for 'Other Assistance' in 1975-76 is a provision of $1.5 million for interim assistance, pending the Government's consideration of the Industries Assistance Commission's report on professional electronic equipment, to manufacturers of selected electronic components of defence, telecommunication or technological significance. In 1974-75, $385,400 was spent for this purpose. {:#subdebate-67-158} #### Tourist Industry Total outlays to assist the tourist industry are estimated at $8.9 million in 1975-76, compared with $7.2 million in 1974-75. Of this amount $4.0 million will be provided to the Australian Tourist Commission for the purposes of encouraging overseas visitors to travel to and within Australia, and for promoting domestic tourism. Of the $6.8 million estimated to be spent on other assistance to the tourist industry, $2.5 million has been provided for grants for the development of tourist attractions and $3.1 million to acquire further equity in tourism attractions. The Government has decided to replace assistance extended by way of loans to Old Sydney Town, a reconstruction of early Sydney, by acquiring an increased equity in the company conducting the enterprise. The criteria on which grants have been made to develop tourist attractions have been widened to include information and interpreter centres, visitor facilities and certain other basic facilities necessary for the development of tourist attractions. {:#subdebate-67-159} #### Other Assistance To Industry {:#subdebate-67-160} #### Australian Industry Development Corporation The function of the Australian Industry Development Corporation is to facilitate and encourage the establishment, development and advancement of Australian industries by providing financial resources to, or participating with, Australian companies engaged in activities falling within a wide area of industrial, mining and related activities. To facilitate its operations, the Corporation has requested, in accordance with the *Australian Industry Development Corporation Act* 1970-75, the payment of a further instalment of capital of $25 million this year. The Act provides that $100 million is payable to the Corporation as its capital. The payment of $25 million to be made this year will increase the Corporation's paid-up capital from $50 million to $75 million. The estimates also provide for $50 million to be advanced to the Corporation from the proceeds of loans to be raised overseas in the name of the Australian Government. Any such loans arranged would be undertaken at the request of the Corporation, and the proceeds would be advanced under the authority of the *Loans (Australian Industry Development Corporation) Act* 1974, on terms and conditions which accord with the provisions of that Act. {:#subdebate-67-161} #### Petroleum Products Subsidy The Government decided to discontinue the Petroleum Products Prices StabilisationScheme from 1 August 1974. This Scheme previously operated to subsidise the wholesale price of certain petroleum products in non-metropolitan areas. The estimates provide $50,000 for outstanding claims by the oil companies under the Scheme. {:#subdebate-67-162} #### Export and Trade Promotion Expenditure on export and trade promotion is estimated at $15.4 million in 1975-76. This total includes expenditure on the Trade Commissioner Service ($10.5 million), matching grants to primary product marketing boards ($1.2 million) and trade publicity, fairs, displays and trade promotion visits ($3.7 million). {:#subdebate-67-163} #### Export Finance and Insurance Corporation The Export Payments Insurance Corporation was wound up on 1 February 1975 when the Export Finance and Insurance Corporation (EFIC) came into operation. In addition to the insurance and guarantee services previously provided by the Export Payments Insurance Corporation, the new export finance division of EFIC facilitates the provision of export finance for medium- and long-term credit sales of machinery and capital equipment, and the establishment of lines of credit, especially to developing countries and state trading organisations. In peforming these functions, EFIC supplements the medium- and long-term export financing facilities provided by the trading banks. . The Corporation has authority, where appropriate, to match, but not lead the financing arrangements provided by overseas government-supported export finance institutions, but EFIC may only finance a particular transaction when, in its opinion, this is desirable and the finance would otherwise not be available on reasonable and suitable terms and conditions. Typically EFIC has supported Australian capital goods exporters in their overseas tenders by blending its funds, provided at concessional interest rates, with funds provided by the trading banks at normal commercial rates of interest. The mix of funds is apportioned so that the blended interest rate approximately matches the rates offered by foreign competitors. Funds for EFIC's export financing operations are made available from the Budget on terms determined by the Treasurer which enable the Corporation, where appropriate, to match overseas competition. $2.0 million was advanced to EFIC in 1974-75 for this purpose and a further $2.0 million will be appropriated in 1975-76. Interest payable to the Government on these funds is 7i per cent. In capital goods transactions of the type financed by EFIC, considerable time elapses between the Corporation agreeing to provide concessional finance in respect of a tender and, in the event it is successful, EFIC being called upon to advance funds to finance the export. Because of these time lags the Government has determined special budgetary arrangements for EFIC under which it will set each year a maximum 'commitment authority' which accumulates over the years (a commitment being defined as a firm legal agreement to provide funds). The commitment authority for 1974-75 was $5.0 million and the new commitment authority for 1975-76 is $12.5 million, making a cumulative total commitment authority of $17.5 million. With participation of the Australian trading banks on a 50:50 basis, EFIC would be in a position to assist in supporting business of double this amount. The provision of funds from the Budget to EFIC at a concessional rate of interest involves a subsidy to the extent that the concessional rate is below the comparable cost of such funds to the Government. The subsidy on the $2.0 million advanced in 1974-75 is therefore the difference between the long-term bond rate, which was at the time 9i per cent, and the rate at which funds were advanced to EPIC, i.e. *1* per cent. On the basis of these rates the cost of the subsidy for 1975-76 is estimated at $70,000. {:#subdebate-67-164} #### Other Assistance The item 'Other Assistance' includes an amount of $1.1 million allocated for the cost in 1975-76 of Australian participation, in conjunction with the Governments of Papua New Guinea and Japan, in a technical feasibility study of the Wabo hydro-electric project in Papua New Guinea; $0.4 million was spent on the study in 1974-75. Industry Assistance Through the Taxation System As mentioned earlier in this Statement, a considerable amount of assistance to industry has been provided in the past through special taxation concessions. Some of these concessions were withdrawn during 1972-73 while others were withdrawn or modified in 1973-74 and 1974-75. On the other hand, a new *short-run* concession was introduced in 1974-75 - double depreciation on new plant used in manufacturing and primary production. As indicated in the Budget Speech, this concession is now to be continued beyond 30 June 1975 and extended in its coverage. Such concessions result in a reduction of, or a delay in the receipt of, Australian Government revenues (and a corresponding increase in the funds available to the recipients). They are, in fact, as much a call on the Budget as equivalent direct outlays would be, and for this reason have sometimes been described as disguised expenditures. Assistance of this type through the taxation system has been provided mainly by way of income tax concessions which permit firms and individuals to make deductions from their assessable income additional to those authorised under the general provisions of the income tax law. The amount of revenue forgone in 1974-75 through the main taxation concessions is estimated to have been about $244 million. Details are shown below. (Pay-roll tax rebates under the export incentive scheme in respect of exports in 1970-71 and prior years are included under the heading 'Manufacturing Industry'.) Most of the relevant concessions in the income tax field may be grouped in three broad categories, namely: A those allowing the deduction of larger amounts than are authorised under the general provisions of the law (included in this category is the rebate for export market development expenditure, which, until it was withdrawn, in respect of expenditure incurred on or after 1 July 1974, gave a tax saving additional to the saving resulting from the deductions from income for this expenditure) ; B those allowing certain taxpayers to deduct the cost of items of plant over shorter periods than is the case for the general run of taxpayers; and C those exempting certain classes of income. The main provisions in each of these classes and the estimated amounts of revenue forgone in 1974-75 are shown in the following table. A miscellany of other provisions is not included, in some cases because of lack of data on revenue forgone or questions about the extent to which they may properly be regarded as wholly 'Industry Assistance'. These provisions include the concession whereby primary producers are allowed to adopt artificially low values for natural increase in their livestock accounts for taxation purposes; drought bonds; and the accelerated depreciation of expenditure on employees' amenities. The averaging provisions applied to primary producers are also not included. Taxpayers to whom these provisions apply are assessed on their taxable incomes for the current year at rates of tax corresponding to the average of their incomes for the current year and the preceding four years. One effect of the provisions, which is an intended effect, is to ensure that *fluctuations* in income in conjunction with progression In rates of tax do not lead to those taxpayers bearing higher tax rates than other taxpayers having incomes which, over a period of years, are comparable but nonfluctuating. The effects go beyond that when there is an upward trend in incomes over a number of years and, even if there are fluctuations in income superimposed on that trend, the averaging provisions can result in the taxpayers covered by them bearing lower tax rates than other taxpayers whose incomes over a period of years are comparable. {: type="a" start="c"} 0. Immediate deductibility for capital expenditure by general mining and petroleum mining companies and deductions for appropriations by general mining companies have been withdrawn in respect of expenditure incurred or appropriations made after 17 September 1974. These concessions continue, however, in respect of expenditure incurred before 1 July 1976 if the expenditure was contracted for prior to 18 September 1974. Plant and development expenditure is now deductible over the life of the relevant mine or as depreciation. Expenditure on facilities for the transport of minerals is now deductible over 20 years instead of 10 years. The 10 year write-off continues in respect of expenditure incurred on or before 17 September 1974 or after that date and before 1 July 1976 under a contract made on or before 17 September 1974. *(ft)* An optional scheme of accelerated depreciation, at twice the scheduled rates, was announced on 9 December 1974, to apply to new plant and equipment first used or installed ready for use by taxpayers in the manufacturing and primary industry sectors on or after 1 July 1974 and before 1 July 1975. The scheme would apply to those classes of new plant and equipment which would have attracted eligibility for the income tax investment allowances had these still been in operation. Plant and equipment that attracted these allowances by reason of its coming under a contract signed before 22 August 1973 would not be eligible also for accelerated depreciation. {: type="A" start="O"} 0. This estimate is based on the deductions allowable in the 1973-74 income year in respect of purchases and appropriations in that year (net of amounts included in the 1973-74 assessable income in respect of appropriations made in the previous year) *less* the depreciation that would have been allowable in that year on the relevant plant purchases or the plant in respect of which the appropriations were made. While the provisions in question do not allow any greater total deduction over the life of the plant and equipment than do the normal depreciation provisions of the income tax law, they result in a deferment of tax which involves a cost to the Budget and a benefit, namely the provision of interest-free finance, to the taxpayers concerned. Normal depreciation allowances are designed to allow taxpayers to write off the cost of plant and equipment against income as the plant and equipment is used up in producing that income. The value of accelerated depreciation allowances to taxpayers depends on how much sooner they receive savings than would be the case if the allowances had been based on the usage of plant and equipment, and on the value to them of having the use of these savings. Where there is a constant or increasing rate of investment in plant and equipment subject to accelerated depreciation, the concession virtually provides the taxpayers concerned with a revolving or increasing credit in their account with the taxation revenue. (/) This estimate is based mainly on the exemption of income under section 23 (o) - gold mining, and section 23a - one-fifth exemption of income from the mining of prescribed metals and minerals. Dividends declared after 21 August 1973 out of exempt profits of gold mining, mining of prescribed metals or minerals, the sale of mining rights and profits from the sale of locally produced petroleum are liable to tax in the shareholders' hands. The one-fifth exemption of income from mining prescribed metals and minerals under section 23a has been withdrawn as from the commencement of the 1974-75 income year. {: type="A" start="D"} 0. LABOUR AND EMPLOYMENT Expenditure on labour and employment programs is expected to total $212.0 million in 1975-76, an increase of $45.2 million on 1974-75. The expected increase in expenditure in 1975-76 reflects greater activity under the National Employment and Training System (NEAT) ($22.1 million), further assistance for apprenticeship training ($17.6 million), expansion of departmental activity ($8.0 million) and provision of funds for the Australian Trade Union Training Authority ($3.0 million). This is partly offset by the Government's decision to reduce the provision of funds for assisted migration to $9.0 million in 1975-76. Details are shown in the following table: {:#subdebate-67-165} #### Conciliation and Arbitration Expenditure in 1975-76 is estimated to increase by $0.8 million to $4.8 million as a result of increasing costs and higher levels of activity. {:#subdebate-67-166} #### Payment to Stevedoring Industry Authority This payment is financed from man-hour levies imposed on stevedoring employers under the *Stevedoring Industry Charge Act* 1947-1973 and collected by the Government on behalf of the Authority. The funds are utilised by the Authority to pay attendance money and leave benefits to waterside workers, and to reimburse employers for pension and redundancy payments. The payment to the Stevedoring Industry Authority in 1975-76 is estimated at $22.8 million, an increase of $0.4 million over expenditure in 1974-75, due to the full-year effect of increased man-hour levy rates. {:#subdebate-67-167} #### Coal Mining Industry Long Service Leave Long service leave benefits for coal miners are financed from a Trust Fund established under the *States Grants (Coal Mining Industry Long Service Leave) Act* 1949-1968. In States where miners have been awarded long service leave, the States reimburse employers the cost of granting this leave. The Australian Government in turn reimburses the States from an excise imposed on the production of coal. The excise is estimated to yield $3.1 million in 1975-76 and this amount has been provided for payments to the Trust Fund. Expenditure from the Trust Fund in 1975-76 is estimated to be $3.4 million. {:#subdebate-67-168} #### Trade Union Training This item provides funds for expenditure under the *Trade Union Training Authority Act* 1975 for the establishment and operation of trade union training courses conducted by the Australian Trade Union Training Authority at the national and state level. Provision is also made for the commencement of construction of the Clyde Cameron College at Albury-Wodonga. Expenditure in 1975-76 is estimated at $3.0 million. {:#subdebate-67-169} #### Apprenticeship Training Government assistance for apprenticeship training is intended to promote apprenticeship opportunities and to improve the standard of training of apprentices in industry. The major components of apprenticeship training include the National Apprenticeship Assistance Scheme (NAAS), provision for the wage costs of apprentices, surplus to normal requirements, employed in Australian or State Government establishments, and the subsidisation of apprenticeship training supervisors in State Government employment. It is estimated that apprenticeship training assistance will more than double from $17.3 million in 1974-75 to $34.9 million in 1975-76. NAAS, which provides incentives to employers by way of subsidies for first-year apprentice wages and for off-the-job training, accounts for the major expenditure on apprenticeship training. The outlay is estimated to increase from $16.6 million in 1974-75 to $31.3 million in 1975-76. The increase of $14.8 million reflects the fullyear cost of increased employer subsidy rates introduced from 1 January 1975 and subsequently increased further following the April 1975 National Wage Decision. The average wage subsidy paid to employers of first-year apprentices is $1,300 a year. The off-the-job training subsidy for each apprentice is $20 a week. Allowances available to first- and second-year apprentices living away from home under NAAS are to be terminated in 1975-76, this is estimated to yield a saving of $2.7 million. $6 million has been provided for the continuing wage costs of apprentices, surplus to normal requirements, undergoing training in Australian and State Government establishments. Apprenticeship training supervisors subsidised in State Government employment are estimated to cost the Australian Government $0.4 million in 1975-76. {:#subdebate-67-170} #### Employment Training Schemes NEAT and other employment training arrangements are estimated to cost $52.9 million in 1975-76, an increase of $20.8 million on 1974-75. Under NEATS, trainees receive full- or part-time training allowances, living-away-from-home and book and equipment allowances, and assistance with the payment of fees and fares. Subsidies are available to employers providing in-industry training or who release trainees for training during working hours. $52 million has been provided for NEATS in 1975-76, an increase of $22.1 million on 1974-75. {:#subdebate-67-171} #### Assisted Migration In determining the annual migration program, account is taken of such factors as the need for skilled workers and employment conditions in Australia, the availability of suitable migrants, family reunions and humanitarian considerations, especially as far as refugees are concerned. Expenditure on assisted migration is estimated at $15.8 million in 1975-76, $6.4 million less than in 1974-75. The reduced level of the assisted migration program is partially offset by the full-year effect of increases in passage costs. The main components of the assisted migration program in 1975-76 are embarkation and passage costs ($9.0 million) and transitory accommodation ($6.0 million). Contributions by assisted migrants towards passage costs are to be increased from $75 to $150 a migrant unit and are estimated to total $0.6 million in 1975-76. {:#subdebate-67-172} #### General Administration Expenditure in 1975-76 for the operating costs of the Department of Labor and Immigration is estimated at $75.3 million, an increase of $8.0 million on 1974-75. The increase is due almost entirely to the full-year effects of increases in staff numbers,, particularly in employment and training areas, and in wage and salary costs. {: type="A" start="E"} 0. OTHER ECONOMIC SERVICES This residual group covers several economic services which are not readily categorised elsewhere. Outlays on these various services in each of the past two years and the estimates, for 1975-76 are summarised in the following table. {:#subdebate-67-173} #### Economic and Trade Regulation Most of the outlays under this heading relate to the costs of operations of the various authorities listed. The Industries Assistance Commission was established by the Government in 1973 to inquire into and report to the Government on questions of assistance for all industries. The Tariff Board had previously advised on protection for manufacturing industry, and its activities have been taken over by the Commission. The 1975-76 estimates include $1.1 million for consumer protection. This amount is to meet the costs of the Government's expanded activities in connection with consumer affairs, including the proposed establishment of an Australian Consumer Protection Authority, the testing of consumer goods and grants to consumer organisations. {:#subdebate-67-174} #### Australian Government Insurance Corporation The Government has introduced legislation to establish an Australian Government Insurance Corporation. The sum of $1.8 million is being allocated in 1975-76 to provide the initial working capital and advance to enable the Corporation to undertake its proposed functions. {:#subdebate-67-175} #### Specialised Activities and General Administrative Services Increases in wage and salary costs are responsible for most of the increases of both the specialised activities and general administrative services listed in the above table. Recoveries in respect of specialised activities are estimated to increase to $12.0 million in 1975-76; these represent revenues of the Bureau of Meteorology from specialist services. {: type="1" start="9"} 0. GENERAL PUBLIC SERVICES This broad functional heading covers a range of general public services and activities concerned with the organisation and operation of the Australian Government, including legislative services, administrative services, the maintenance of law and order and foreign affairs and overseas aid. {: type="A" start="A"} 0. LEGISLATIVE SERVICES Estimates of outlays on legislative services in 1975-76, together with details or actual outlays in the preceding two years, are shown in the following table: {:#subdebate-67-176} #### Parliamentary Expenditure - Salaries and Allowances In its review of March 1975, the Remuneration Tribunal determined increases in salaries and allowances payable to Senators and Members of the House of Representatives. The Tribunal's determination was accepted by the Parliament and is estimated to add $2.9 million to expenditure for this purpose in 1975-76. {:#subdebate-67-177} #### Parliamentary Expenditure - Other This item covers salaries, administrative costs and capital works associated with the functioning of Parliament and includes costs relating to State and Electorate offices of Senators and Members of Parliament, ministerial staff and the staff of other officeholders. The $2.6 million increase relates mainly to increased costs of salaries and allowances, including a full year's operation of the Legislative Drafting Institute and the entitlement of Senators and Members to additional assistance in Electorate offices. {:#subdebate-67-178} #### Australian Electoral Office This item reflects the administrative costs of maintaining electoral rolls and the conduct of Australian Government elections and referenda. $3.5 million is included for the scheduled Senate elections in 1975-76. {: type="A" start="B"} 0. LAW, ORDER AND PUBLIC SAFETY Australian Government outlays on law, order and public safety are estimated to total $114.1 million in 1975-76, an increase of $30.1 million over 1974-75. Details of actual outlays in the two years to 1974-75, together with estimates for 1975-76, are provided in the following table and associated commentary: {:#subdebate-67-179} #### Courts and Legal Services {:#subdebate-67-180} #### High Court A new High Court building is being constructed in the Australian Capital Territory at an estimated cost of $18.4 million; $0.5 million is provided for further expenditure on this building in 1975-76. The other $1.2 million under this heading represents the estimated running costs of the High Court in 1975-76. {:#subdebate-67-181} #### Commonwealth-State Law Courts The Australian Government is meeting approximately 45 per cent of the construction costs of a joint court complex with the State of New South Wales in Sydney. A further $4.2 million is included in the estimates for the Australian Government's share in 1975-76; the complex is scheduled for completion in mid-1976. {:#subdebate-67-182} #### Australian Family Courts The *Family Law Act* 1975 established the Family Court of Australia, the Family Law Council and the Institute of Family Studies. A total of $4.9 million has been allocated for the 1975-76 operations of these bodies. An amount of $2.9 million has been provided for the Family Court of Australia, the Family Law Council and the Institute of Family Studies and $2.0 million has been provided for reimbursement of State Govern- / ments for the provision of a maintenance administration and enforcement function and for public education and information on the role of the Court. {:#subdebate-67-183} #### Australian Law Reform Commission The Government has established the Australian Law Reform Commission to deal, on a national basis, with the systematic development and reform of the law, including in particular, the modernisation and simplification of the law, the elimination of defects in the law and the adoption of new or more effective methods of administration of the law and the dispensation of justice. An amount of $0.5 million is to he provided in 1975-76, the first full year of operation of the Commission. {:#subdebate-67-184} #### Legal Aid The Australian Government is committed to the provision of legal aid to provide advice and assistance to persons in need, particularly disadvantaged persons, on an equitable basis throughout Australia. In furtherance of this objective, provision is made in the Budget for the establishment of an additional twenty-eight regional offices during 1975-76. By June 1975, one central office, eight branch offices and twenty-one regional offices were operating throughout Australia. The Family Law Act is expected to generate heavy demands on the Australian Legal Aid Office and the bulk of cases will need to be referred to private legal practitioners. The estimated total cost of $16.7 million for 1 975-76 includes payments to private legal practitioners estimated at $7.0 million, grants of $1.0 million to the States to supplement existing legal aid schemes and $3.0 million for legal aid to Aboriginals. {:#subdebate-67-185} #### Protection of Human Rights The *Racial Discrimination Act* 1975 established a Commissioner for Community Relations and a Community Relations Council. The running costs of the Office of the Commissioner and the Council are estimated at $0.3 million in 1975-76. {:#subdebate-67-186} #### Police, Security and Detention The Commonwealth, Australian Capital Territory and Northern Territory Police Forces have been combined under the Department of Police and Customs. The estimated increase of $6.9 million in 1975-76 reflects mainly salary increases ($4.2 million) and the further upgrading of equipment and strength of the forces. Legislation to establish the Australia Police is expected to be introduced in the Budget Session of Parliament. {:#subdebate-67-187} #### Attorney-General's Department Administrative expenditure by the Attorney-General's Department is estimated at $13.9 million in 1975-76, an increase of $2.2 million on 1974-75. The main increase is for salary payments; other outlays include $0.8 million to complete the 1901-1973 consolidation of Australian Government Acts. {:#subdebate-67-188} #### Public Safety and Protection An amount of $2.1 million is included for the recently created Road Safety and Standards Authority, including $0.7 million for the acquisition of land and initial expenditure on buildings and facilities. The Government is also providing an annual grant to the States of $150,000 for the promotion of road safety practices. Other outlays on public safety are very largely for various fire-prevention services. {: type="A" start="C"} 0. FOREIGN AFFAIRS AND OVERSEAS AID This heading embraces most of the expenditures undertaken by the Australian Government in the pursuit of policies designed to foster relations with foreign countries and external territories. The bulk of the expenditures (about 75 per cent in 1975-76) relates to various external economic aid programs to assist developing countries, including Papua New Guinea. A detailed account of these aid programs is given in Budget Paper No. 9 entitled *Australia's Development Assistance, 1975-76.* Total outlays on foreign affairs and overseas aid are estimated to increase by $72.8 million, or 16.8 per cent, to $507.1 million in 1975-76. As the following table shows, the net increase in aid payments accounts for most of this increase. {:#subdebate-67-189} #### Aid Payments Total expenditure on overseas aid in 1975-76 is estimated at $378.2 million, an increase of $48.6 million or 14.7 per cent over 1974-75. The overall cost of providing assistance to developing countries is considerably greater than the readily identifiable expenditures in the Budget which have been incorporated under 'Aid Payments' in the above table. When outlays which are mentioned in later paragraphs are added in, the total resources devoted to the provision of official assistance to developing countries in 1975-76 are estimated to amount to $422 million. This figure does not, however, allow for significant sums spent by Australian and State Governments on the education of several thousand students from developing countries or for the portion of Australia's contributions to the regular budgets of a number of international organisations which help to finance aid projects in developing countries. Nor does it take into account the relevant activities of the Export Finance and Insurance Corporation (previously the Export Payments Insurance Corporation). The Government, in the national interest, has assumed large contingent liabilities on behalf of developing countries through its support of EFIC activities in export and investment insurance. Since February 1975 EFIC has also operated a facility to finance exports of capital goods, on concessional terms if necessary, especially to developing countries. {:#subdebate-67-190} #### Papua New Guinea An amount of $210.0 million has been provided for expenditure on aid to or on behalf of the Papua New Guinea Government in 1975-76, $39.3 million more than in 1974-75. The Papua New Guinea aid program for 1975-76 includes provision for general budgetary support grants totalling $97.3 million and payments in respect of the Australian Staffing Assistance Group (ASAG) totalling $102.0 million. The latter amount covers salaries and allowances payable to continuing employees of ASAG ($37.0 million); a grant for staffing assistance to the PNG Government to meet the cost of salaries and allowances of former ASAG employees taking up contract emlpoyment with the PNG Government arising out of the recent agreement by the PNG and Australian Governments to phase out the ASAG arrangement by 30 June 1976 ($16.0 million), and termination and retirement benefits payable to certain former expatriate officers of the PNG Public Service ($49.0 million). Other expenditures on aid to Papua New Guinea include the cost, estimated to be $9.2 million in 1975-76, of upgrading civil aviation facilities at Port Moresby and Nadzab (near Lae) and an amount of $1.5 million as the third instalment of a grant of $5.0 million to be paid over 5 years for the Papua New Guinea cultural development program. *Bilateral Aid (excluding Papua New Guinea)* Expenditures on bilateral aid programs (excluding Papua New Guinea) are estimated to decrease by $5.1 million, or by about 4.4 per cent, to a total of $111.0 million in 1975-76. The expected decrease is due mainly to a decline in wheat prices compared with the level of prices over 1974-75, and the completion of some programs such as contributions to the Indus Basin Development Fund. A total of $59.1 million has been provided for expenditure on bilateral aid projects, technical co-operation and related activities in 1975-76. This is $4.9 million or 9.0 per cent greater than actual expenditure in 1974-75. A total of $16.1 million has been provided for various training schemes for people from developing countries in 1975-76, compared with $11.4 million in 1974-75. Australia will provide of the order of 350,000 tonnes of wheat or flour equivalent as food aid under the International Wheat Agreement in 1975-76 compared with 332,000 tonnes in 1974-75. The expected lower level of wheat prices compared with that current in 1974-75 explains the decrease of $15.0 million in the estimate for this item. Support for voluntary aid organisations in Australia will increase by 21.2 per cent, from $487,000 to $590,000 in 1975-76. {:#subdebate-67-191} #### Multilateral Aid Expenditures on multilateral aid programs are estimated to increase by $14.4 million, or 33.6 per cent, to a total of $57.2 million in 1975-76. This total comprises $15.9 million for UN and other organisations, $31.0 million for the Asian Development Bank and World Bank Group and $10.3 million for new multilateral aid initiatives. Total payments by Australia to the Asian Development Bank and the World Bank Group are expected to increase by $4.3 million to $31.0 million in 1975-76. As in the previous financial year, there will be an offsetting receipt of $706,000 from the International Bank for Reconstruction and Development in respect of the maintenance of value repayments which that institution is required to make to Australia in accordance with its Articles of Agreement. In addition, provision has been made this financial year for a further receipt of $100,000 in respect of similar maintenance of value payments from the Asian Development Bank. The bulk of the estimated payments by Australia to international development finance institutions in 1975-76 represents calls on Australia in accordance with previously announced commitments to those institutions. These calls, in respect of Australia's contributions to the replenishments of the resources of the International Development Association and to the Asian Development Bank and its special funds, are expected to total $30.1 million in 1975-76, $7.6 million more than in 1974-75. In addition, Australia proposes to make available a further contribution of the equivalent of $US250,000 to the Asian Development Bank Technical Assistance Special Fund in 1975-76; there was no payment to this Fund in 1974-75. Australia recently took up a special increase in its capital subscription to the International Bank for Reconstruction and Development. The paid-in portion of this increased subscription ($277,000) was paid in cash in 1974-75 and a promissory note was issued for the balance ($2,489,000). This note will be encashed in eight equal six-monthly instalments, and two further encashments under this schedule account for the provision in 1975-76. Of the $10.3 million provided for new proposals, $4.0 million has been allocated for a contribution to the International Fund for Agricultural Development and $5.9 million for contributions to inter-governmental agencies to assist countries most in need. The remainder allows for contributions to the International Labor Organisation for technical co-operation purposes and to overseas research and development programs. *Assistance Additional to 'Aid Payments'* The provision of Defence Co-operation ($39.2 million in 1975-76) represents an extension of Australia's own defence effort but it also supplements the Government's external economic aid programs in furthering the broad foreign policy objectives of helping developing countries in the Asia/ Pacific area to raise their standards of living. It serves this objective by releasing resources that the recipient Governments themselves might otherwise have devoted to defence purposes for development purposes. Details of Australia's assistance in this respect are included in the section on Defence Cooperation under the 'Defence' function. The administrative expenses of the Australian Development Assistance Agency are: estimated at $8.1 million for 1975-76. These costs form part of Australia's aid effort but are classified as 'General Administrative Expenditures'. Expenditures of some other departments can be regarded as a form of development assistance although they are not included in the above estimates of aid payments. Expenditure incurred by the Department of Transport in assisting Fiji upgrade facilities at Nadi International Airport would come into this category as would expenditure incurred by the Department of Overseas Trade in financing Australian consultancy services in developing countries, and in encouraging a greater flow of private direct investment in developing countries by Australian companies. {:#subdebate-67-192} #### Cocos (Keeling), Christmas and Norfolk Islands Included under this heading are the costs involved in administering these three small external territories. An increased amount has been provided for the Cocos (Keeling) Islands in 1975-76, reflecting in part the appointment in July 1975 of an official Administrator for the Islands. An allocation of $265,000 has been made in the Budget for a continuing program for restoration of historic buildings on Norfolk Island. Provision of $179,300 has been included in the estimates to meet the cost in 1975-76 of a Royal Commission set up by the Government to inquire into matters relating to Norfolk Island. {:#subdebate-67-193} #### Membership of International Organisations and Other Non-Aid Expenditure This item encompasses expenditure incurred by virtue of Australia's membership of a wide range of international organisations. Active participation in many global and regional organisations is an integral part of Australia's present foreign policy. This involves financial contributions towards the administrative expenses and, in some cases, the functional activities of the organisations in question. Total expenditure under this heading is expected to increase from $13.4 million in 1974-75 to $15.1 million in 1975-76. The major items include $3.0 million for the United Nations Organisation, $1.2 million for the World Health Organisation, $1.2 million for expenditures associated with Australia's cultural relations with various other countries, $1.0 million to the Organisation for Economic Co-operation and Development, $1.0 million towards the costs of the UN Peace Keeping Force in the Middle East and $0.8 million for the United Nations Education, Science and Cultural Organisation, $1.0 million for participation in the U.S. Bicentennial celebrations and $0.5 million for the proposed Australia/Japan Foundation. {:#subdebate-67-194} #### General Administrative Expenses Included in this item are the administrative costs of the Department of Foreign Affairs, the Australian Development Assistance Agency and the Overseas Property Bureau. The increase in 1975-76 is explained in part by the continuation of the large overseas construction program, which commenced last financial year. It reflects also the provision for a full-year effect of cost increases during 1974-75 associated with the establishment of the Australian Development Assistance Agency's State office organisation, wage and salary increases and the September 1974 devaluation of the Australian dollar and subsequent currency variations. {: type="A" start="D"} 0. GENERAL AND SCIENTIFIC RESEARCH NEC The largest expenditure under this heading is that by the CSIRO. Also included are expenditures on specific programs of research undertaken by several Government departments and instrumentalities, such as the research activities of the Department of Science and Consumer Affairs in Antarctica and the nuclear research activities of the Australian Atomic Energy Commission. Assistance for general research activities through the Australian Research Grants Committee, fellowship schemes and support for the learned academies is included also. {:#subdebate-67-195} #### Australian Atomic Energy Commission The Commission's functions include research and investigation into matters associated with uranium and atomic energy and the production and sale of radio-isotopes. In addition the Commission has been given responsibility for the Government's participation in uranium exploration and development. Outlays relating to that role are included under 'Industry Assistance and Development*. {:#subdebate-67-196} #### Commonwealth Scientific and Industrial Research Organization Expenditure by CSIRO relates to the Organization's activities in the fields of agricultural, biological, industrial and physical research, together with the provision of research services and facilities and support for research associations. The increase of $9.3 million in the provision for CSIRO in 1975-76 includes additional salary and wage costs of $4.4 million and an increase of $5.0 million for capital works. Partly offsetting these and other smaller increases is a reduction of $8.3 million resulting from the transfer of the financing of minerals and solar energy research to the Department of Minerals and Energy. {:#subdebate-67-197} #### Research Grants Assistance is provided through the Australian Research Grants Committee, the Queen Elizabeth II Fellowship Scheme and the Queen's Fellowship Scheme for research projects by individuals in the humanities and social sciences, physical, chemical, biological and earth sciences, engineering and applied sciences and marine science. The reduction in the provision under this heading reflects the decision to provide $20.0 million for the Australian Research Grants Committee triennial program in 1976-78. The provision for this purpose in 1973-75 was $22.8 million. {:#subdebate-67-198} #### Australian Institute of Marine Science The Australian Institute of Marine Science was established in 1972 to conduct studies in marine science and to co-ordinate and develop marine science in Australia. Initially, the work of the Institute is being directed to studies of the Great Barrier Reef, the Coral Sea and the coast and adjacent waters of North Queensland. The Institute will occupy temporary premises in Townsville pending the construction of a laboratory at Cape Ferguson. The provision in 1975-76 of $6.3 million reflects expansion of the Institute's research program and progress with the construction of the permanent laboratory. {:#subdebate-67-199} #### Anglo-Australian Telescope Board This item covers the Australian Government's share of the cost of constructing and operating a 3.9 metre optical telescope near Coonabarabran in New South Wales; the total capital cost of the project, estimated at $15.9 million, is being shared equally between Australia and the United Kingdom. The construction of the telescope was completed in 1974-75. The cost of operating the facility in 1975-76 is estimated at $1.7 million, one-half of which will be met by Australia. {:#subdebate-67-200} #### Australian Institute of Aboriginal Studies <" The Australian Institute of Aboriginal Studies was established in .1964 to promote, encourage and assist studies and research in relation to the Australian Aboriginal people. The grant to the Institute of $1.9 million in 1975-76 will enable the Institute to maintain the level of activity achieved in 1974-75. Work r..:11 continue on the identification, recording and preservation of sites that are of special significance to Aboriginals, on the collection of Aboriginal music, folklore and language and on research into the interaction between Aboriginals and Europeans. {:#subdebate-67-201} #### Minerals and Solar Energy Research As already mentioned, responsibility for minerals and solar 'energy research has been transferred from the Minister for Science and Consumer Affairs to the Minister for Minerals and Energy. The costs of these activities in previous years are included in the figures for the CSIRO. *Other Research and Science nec* Items under this heading include support for the Academies of Science, the Social Sciences and the Humanities, the Australian and New Zealand Association for the Advancement of Science and other minor support for scientific and research activities. In addition funds are provided for activities under several agreements for scientific and technological co-operation with other countries. Also included are amounts for the support and development of major scientific facilities such as the Balloon Launching Station at Mildura, the Nuclear Magnetic Resonance Spectrometer and the facilities operated under arrangement with US agencies. {: type="A" start="E"} 0. ADMINISTRATIVE SERVICES Included under this heading are general administrative services not allocated to specific functions, together with some common services. Details of outlays on general administrative services in 1973-74 and 1974-75, together with estimates for 1975-76, are shown in the following table: >The Government has decided to reimpose a policy of restraint in its employment of staff in 1975-76. The ceiling increase of 2.8 per cent on the growth of full-time staff under the Public Service Act which has been imposed for 1975-76 compares with actual increases in comparable staff of 5.3 per cent in 1973-74 and 6.3 per cent in 1974-75. After allowance for largely unavoidable increases in the number of staff on leave of various kinds, the ceiling increase on total operative staff employed under the Public Service Act will be 1.5 per cent. Similar restraints on staff numbers are to apply to employment by Government Statutory Authorities (which are not encompassed by the Public Service Act). > >In 1974 the Government established a Royal Commission on Australian Government Administration, which was expected to report within two years of its establishment. The 1975-76 estimates include $0.5 million for the cost associated with the inquiry. {:#subdebate-67-202} #### Financial Affairs and Fiscal Administration {:#subdebate-67-203} #### Taxation Administration The Taxation Office has undertaken a program of decentralization of its activities by establishing a regional office at Parramatta. A further regional office is planned for Dandenong while the present office at Townsville is to be enlarged. {:#subdebate-67-204} #### Statistical Services The *Australian Bureau of Statistics Act* 1975 established the Bureau as a statutory authority. The same Act established the Australian Statistics Advisory Council as a body representative of users of official statistics to advise on statistical priorities and the efficiency of statistical systems. The estimated increase in outlays of. $5.7 million is attributable mainly to increased salary costs ($4.1 million) and an estimated amount of $1.7 million related directly to the proposed 1976 Census of Population and Housing. General Administration of the Territories {:#subdebate-67-205} #### Buildings, Works and Equipment An amount of $4.0 million, an increase of $1.1 million over 1974-75, is to be provided for the Department of Housing and Construction for on-going construction activities in the Northern Territory. A further $15.3 million is provided for expenditure by the Darwin Reconstruction Commission, mainly for the restoration of public buildings (excluding housing) damaged by Cyclone Tracy. Other Administrative Services nec *Department of the Prime Minister and Cabinet* The estimates include $1.9 million for computing equipment associated with the MANDATA project being undertaken by the Public Service Board. This project will provide a centralised facility for the maintenance of personnel and establishment records and for the automation of the application of non-discretionary staff entitlements for all Australian Government Departments. {:#subdebate-67-206} #### Ombudsman and Administrative Appeals Tribunal An amount of $0.1 million has been estimated for the running costs of the Office of the Ombudsman in 1975-76. The Administrative Appeals Tribunal Bill is currently before the House of Representatives and is expected to be passed during the Budget Session of Parliament. Running expenses of the Tribunal are estimated to amount to $0.3 million in 1975-76. {:#subdebate-67-207} #### Common Services Included under this heading are outlays of departments and agencies providing general services to the Government as a whole, such as construction activities, printing, publicity, storage and transport services and the purchase and lease of buildings. {:#subdebate-67-208} #### Construction Services (Net) The estimated net increase of $0.4 million in outlays on construction services is due mainly to increases in salaries for the Department of Housing and Construction ('non-housing' function), and to higher outlays on construction and maintenance of workshops and depots and purchase of furniture and fittings. {:#subdebate-67-209} #### Australian Government Offices This item reflects the costs of constructing, purchasing and maintaining Australian Government offices, including land for new offices. The exceptionally high expenditure in 1974-75 ($45.3 million) reflected an extensive acquisitions program which included building sites in Sydney and Adelaide ($10.0 million) and a new office block in Brisbane ($2.5 million). Outlays in 1975-76 include $1.0 million towards the cost of a new Australian Government office complex at Parramatta which has an estimated total cost of $47.0 million. {:#subdebate-67-210} #### Property Management and Services Provision is made for the services necessary to maintain and service Government office accommodation. The major increases are in salaries ($3.1 million) and increased costs of fitting out leased premises ($3.4 million) following a large increase in requirements for leased space during 1974-75. {:#subdebate-67-211} #### Government Purchasing The establishment of the Australian Government Purchasing Commission is subject to the passage of legislation. The main component of the estimate for 1975-76 is salaries ($7.9 million). {:#subdebate-67-212} #### Publicity Services Expenditure under this heading includes the programs of publicity undertaken through the Australian Office of Information and through films made by Film Australia. {:#subdebate-67-213} #### Rent This heading covers the payment of rent for office space leased by the Australian Government. {:#subdebate-67-214} #### Stores and Transport Included in this item are removal and storage costs associated with the transfer of government civilian employees and the costs of operating Australian Government transport pools in the States. Much of the increase in 1974-75 was due to a large motor vehicle purchasing program. {: type="1" start="1"} 0. NOT ALLOCATED TO FUNCTION Outlays not allocated to specific functions comprise payments to the States and local government authorities not elsewhere classified in this Statement, natural disaster relief, interest payments on the public debt, and an allowance of $150 million for increases in wages and salaries for Australian Government employees and the defence forces. {: type="A" start="A"} 0. PAYMENTS TO OR FOR THE STATES AND LOCAL GOVERNMENT AUTHORITIES NEC AND NATURAL DISASTER RELIEF Outlays under this heading comprise general revenue assistance for the States, State Government Loan Council programs, assistance related to State debt, certain forms of financial assistance for local government and natural disaster relief. Details of these payments are presented below; additional information on these and other payments to the States classified under various functional headings is contained in the Budget Paper *Payments to or for the States and Local Government Authorities, 1975-76.* {:#subdebate-67-215} #### General Revenue Assistance General revenue assistance is utilised for purposes determined by the States themselves. The financial assistance grants, which make up most of this assistance, are determined under a formula by which the grant to each State each year is equal to the grant paid in the previous year escalated by the percentage increase in the State's population and in average wages in the whole economy and by a further 'betterment' factor. Between 1971-72 and 1974-75 the 'betterment' factor was 1.8 per cent. Following re-negotiation of the financial assistance arrangements at the June 1975 Premiers' Conference, this 'betterment' factor is to be increased to 3.0 per cent for purposes of calculating the grants in 1976-77 and subsequent years. It was also agreed during the re-negotiation of the arrangements that the grants for 1975-76 would reflect a permanent addition of S220 million to the base grants. The grants for 1975-76 and subsequent years will also reflect adjustments associated with transfers of railways in South Australia and Tasmania to the Australian Government and the withdrawal of the former State from the Grants Commission system. Special grants are paid on the recommendation of the Grants Commission, an exception to that being grants totalling SI 6.4 million made in 1974-75 to South Australia in connection with its withdrawal from the special grants system at the end of that year. Queensland and Tasmania are at present applicant States under the Grants Commission system but no payments to the latter State are provided for in the 1975-76 Budget. Repayments under the- general revenue assistance heading relate to special repayable and interest bearing advances made to Victoria in 1969-70 and New South Wales in 1971-72 and 1972-73. In total, general revenue assistance (net) in 1975-76 is estimated at $3,216.9 million, an increase of $728.4 million, or 29.3 per cent, compared with 1974-75. {:#subdebate-67-216} #### State Government Loan Council Programs At its June 1975 meeting the Loan Council approved a total State Government program of $1,291.0 million for 1975-76 made up of a basic program of $1,281.0 million and a special permanent addition of $10.0 million for New South Wales in recognition of the State's relatively low per head share of Loan Council programs compared with other States". Of the total program of $1,291.0 million, $860.7 million will be represented by borrowings and $430.3 million by capital grants provided by the Australian Government. . The programs agreed to for both South Australia and Tasmania were $6.0 million lower than they would otherwise have been to take account of savings to the States' capital works programs brought about by the transfer of Tasmania's railway system to the Australian Government on 1 July 1975 and the proposed transfer of the South Australian non-metropolitan railways. The Loan Council agreed that if the South Australian transfer was not effected, both the total program and South Australia's share of it would be increased by $6.0 million. The basic State Government program for 1975-76 of $1,281.0 million represents an effective increase (that is, adjusted for the effects of the railway 'offsets' referred to above) of 20 per cent over the 1974-75 basic program. When account is taken of the special permanent addition of $10.0 million for New South Wales, the increase in the total 1975-76 program over the 1974-75 basic program becomes 20.9 per cent. {:#subdebate-67-217} #### Assistance Related to State Debts Under the Financial Agreement the Australian Government pays $15 million each year to the States as a contribution towards interest payable on their debt and also contributes sinking fund payments. The sinking fund payments in 1975-76 are estimated to total $30.2 million. Debt charges assistance grants have been made in accordance with an undertaking by the Australian Government to meet the debt charges on $200 million of State debt in 1970-71 and a further $200 million each year from 1971-72 to 1974-75. Grants totalling $57.5 million were made for this purpose in 1974-75, the last year of the arrangements. The formal transfer of the $1,000 million debt from the States to the Australian Government will be effected retrospective to 30 June 1975 when proposed amendments to the Financial Agreement have been ratified. {:#subdebate-67-218} #### Assistance for Local Government The Budget provides for the payment of $79.9 million to the States in 1975-76, to be passed on to local government authorities for the purpose of reducing financial inequalities between such authorities. This assistance is based on recommendations of the Grants Commission and represents a continuation of the program of assistance for local government commenced in 1974-75 with the provision of $56.3 million. The assistance is provided to local government authorities without conditions as to the purposes for which it may be used. In addition, the Budget provides an amount of $0.3 million in 1975-76 to assist the establishment and maintenance of regional organisations of local government authorities which make applications for assistance to the Grants Commission. The purpose of the funds is to meet administrative expenses and encourage activity on a regional basis. {:#subdebate-67-219} #### Natural Disaster Relief Following the devastation of Darwin by Cyclone Tracy on 25 December 1974, the Australian Government undertook the evacuation of the city, the restoration of essential services and the provision of emergency food and medical supplies and accommodation. The Government also implemented a scheme of social welfare benefits both for those remaining in Darwin and those evacuated and living elsewhere, and implemented a loans scheme to assist small businesses to re-establish themselves. The Australian Government is also providing financial assistance to New South Wales, Victoria, Queensland and South Australia for relief and restoration measures necessitated by an unprecedented number of separate natural disasters, many of which occurred in 1974-75. Expenditures on natural disaster relief included under this heading in 1974-75 totalled $1 19.3 million, of which $65.9 million was for relief and restoration measures in Darwin while $53.4 million took the form of payments to the States. Additional outlays resulting from the Darwin cyclone and the Derwent bridge collapse are included under other functional headings. It is estimated that expenditure on natural disaster relief will total $57.6 million in 1975-76. Of this amount $48.1 million is provided for relief and restoration measures in Darwin, including the provision of emergency accommodation, repatriation of people to Darwin, loans to private businesses, concessional rental and telephone charges and compensation payments. The balance of $9.5 million represents payments to the States. No allowance has been made in the estimates for natural disasters which may occur in 1975-76. {: type="A" start="B"} 0. PUBLIC DEBT INTEREST This heading brings together interest payments made from the Budget sector to other sectors, including interest payments on Australian Government securities, and under defence credit arrangements with other countries. Interest received by Government Trust Funds on Australian Government securities held as investments and cash balances is offset against gross interest payments. *Gross Interest Paid on Australian Government Securities* The estimate for gross interest paid on Australian Government securities comprises interest on all Australian Government securities on issue, except for interest on defence borrowings. It includes interest paid on securities recorded at State Registries and also interest on advances for housing, railways and War Service Land Settlement that is reimbursed by the States to the Australian Government. {:#subdebate-67-220} #### Loan Defence Act Interest Estimated interest payments on loans raised in the United States for defence equipment purchases reflect the declining level of outstanding debt in 1975-76. {:#subdebate-67-221} #### Loan Consolidation and Investment Reserve Interest is received by the Loan Consolidation and Investment Reserve on investments in Australian Government securities which were mainly issued in Special Loans to assist State works programs. {:#subdebate-67-222} #### Other Interest is received by other Australian Government Trust Funds, including the National Welfare Fund and the National Debt Sinking Fund, on investments in Australian Government securities and cash balances. {: type="A" start="C"} 0. ALLOWANCE FOR WAGE AND SALARY INCREASES An allowance of $150 million has been included in the Budget estimates to take account of increases in rates of wages and salaries in the public service which can reasonably be expected to occur over the course of the year. The calculation of this allowance is necessarily approximate but it has been done on a basis consistent with the wage-fixing principles outlined by the Arbitration Commission in its April 1975 National Wage Case decision. {: .page-start } page 170 {:#debate-68} ### STATEMENT No. 4- ESTIMATES OF RECEIPTS 1975=7(5 On the basis of *existing* rates of taxes and other charges, it is estimated that total receipts would amount to $18,910 million in 1975-76, an increase of 23.9 per cent on actual receipts in 1974-75. The various proposals announced in the Budget Speech are estimated to increase receipts in 1975-76 by about $207 million. Overall, total receipts are estimated to amount to $19,117 million, an increase of 25.2 per cent on actual receipts in 1974-75. The estimated effects of the new measures on receipts in 1975-76 and in a full year are shown in the following schedule: The following table compares estimated receipts in 1975-76 with actual receipts in each of the two preceding years. {: .page-start } page 171 {:#debate-69} ### TAXATION REVENUE Total taxation revenue in 1975-76 is estimated to increase by $3,523.9 million, or 25.0 per cent, to $17,608.0 million. The main components of this change are described below. {:#subdebate-69-0} #### Customs Duty - Imports At *existing* rates of duty, collections in 1975-76 are estimated at $850 million, or 1.1 per cent more than in 1974-75. After allowance for the effects of the new measures listed in the above schedule, collections are estimated at $858.4 million in 1975-76. {:#subdebate-69-1} #### Customs Duty - Coal Exports As announced in the Budget Speech, the Government has decided to impose export duties of $6 per tonne on high quality coal and $2 per tonne on lower quality coal. Receipts from this duty are estimated at $120 million in 1975-76. {:#subdebate-69-2} #### Excise Duty The recovery in consumer demand in prospect in 1975-76 is expected to lead to somewhat larger increases in clearances of goods subject to excise duty than those recorded in 1974-75. At *existing* rates of duty total collections are estimated to increase by 5.0 per cent in 1975-76, to $1,815 million. After allowance for the effects of the measures announced in the Budget Speech, including the new duty of $2 per barrel on the production of naturally occurring petroleum liquids including crude oil and naturally occurring liquified petroleum gas (LPG), excise duty collections in 1975-76 are estimated to increase by 39 per cent to $2,408.4 million. The main components of the 1975-76 estimates are as follows: {:#subdebate-69-3} #### Sales Tax It is expected that increases in prices and sale volumes of goods subject to sales tax will combine to produce an overall increase in sale values in 1975-76 similar to that recorded last year. On the basis of existing legislation, sales tax collections are estimated to increase by 23.5 per cent to $1,425 million in 1975-76, compared with an increase of 19.1 per cent in 1974-75. Both increases reflect, in varying degrees, the temporary reductions in rates of sales tax on motor vehicles which were introduced on 29 January and are due to 'be phased out by 1 September 1975. {:#subdebate-69-4} #### Income Tax - Individuals On the basis of *existing* legislation, it is estimated that net collections of income tax from individuals in 1975-76 would increase by 39.2 per cent to $10,735 million. {: type="a" start="a"} 0. *Pay-as-you-earn Instalment Deductions* Before allowance for the changes announced in the Budget Speech, gross pay-as-you-earn instalment deductions in 1975-76 were estimated at $10,100 million, an increase of 46.0 per cent over 1974-75. Underlying this estimate are assumptions that average weekly earnings per employed male unit will increase by 22 per cent, and average employment in male units by 2 per cent, during 1975-76. In present circumstances, this average earnings assumption is very uncertain. There are some, though as yet tentative, indications that it may be on the high side. To the extent that the assumption should prove to be an over-estimate then inflation, and the effect of inflation on the Budget, will be that much less. The measures announced in the Budget Speech are estimated to reduce gross collections from pay-as-you-earn instalment deductions by $392 million in 1975-76. Refunds of pay-as-you-earn tax instalment deductions in 1975-76 are estimated to increase by 20.9 per cent to $1,025 million. Concessional deductions to be allowed on assessment are thought to have increased at a lower rate than incomes in 1974-75 and this will act to depress refunds in 1975-76. On the other hand, refunds are expected to increase as a result of a net over-deduction by employers in 1974-75 (when three different instalment schedules operated) and because of deductions under the scheme of housing loan interest deductibility introduced last year. The estimate for net PAYE collections in 1975-76 is therefore $8,683.0 million, an increase of S2.611.7 million or 43.0 per cent compared with 1974-75. {: type="a" start="b"} 0. *Other* Collections on assessments of individuals are expected, on the basis of *existing* legislation, to increase by only $17.3 million, or 1.1 per cent, to S 1,660 million in 1975-76, compared with an increase of 31.2 per cent in the previous year. For this category of taxpayers, it is 1974-75 incomes which are subject to tax in 1975-76. Incomes of primary producers are estimated to have fallen sharply in 1974-75 and it is this decline which principally accounts for the smallness of the increase in collections; relatively modest increases are estimated in collections on assessments of other individuals in this category. The measures announced in the Budget Speech are estimated to reduce collections by $3 million this year, bringing estimated total collections from this source to $1,657 million. {:#subdebate-69-5} #### Income Tax - Companies Company incomes in 1974-75, from which the great bulk of the present year's collections are drawn, are estimated to have fallen by 6.0 per cent overall compared with 1973-74 levels. On the basis of *existing* tax rates, collections of income tax from companies were estimated to decline by 3.3 per cent in 1975-76, to $2,280 million. After taking into account the reduction in company tax rates announced in the Budget Speech, collections are estimated to decline to $2,160 million, 8.4 per cent less than in 1974-75. Receipts classified under this heading include income and capital transfers which are essentially of a governmental nature and involve regulation or compulsory payment or which are primarily to raise revenue. Included are miscellaneous taxes, regulatory fees, fines and unfunded employee contributions to retirement benefit schemes. Total other taxes, fees and fines are estimated to decline by 11 per cent to $94.7 million in 1975-76. The largest single change is the disappearance of receipts from Broadcast Listeners' and Television Viewers' Licences, *1975-76* being the first full year following the abolition of those licence fees in September 1974. All interest received by the Australian Government from sources outside the Budget sector is included under this heading, together with land rents collected in the Territories and dividends received from Government-owned companies and corporations. Total interest receipts are estimated to increase by $308.7 million or 26.9 per cent in 1975-76. This reflects the large increases which have been recorded in levels of advances from the Budget to non-Budget and other sectors in recent years. The largest increases in interest receipts in 1975-76 are in respect of advances to the States ($1)46.9 million), the Australian Housing Corporation/ Defence Service Homes ($32.8 million), the Pipeline Authority ($6.0 million), the Postal and Telecommunications Commissions ($69.6 million) and the Wool Corporation ($29.3 million). This heading covers withdrawals (other than taxation receipts) from public financial enterprises, such as the Reserve Bank and Commonwealth Banking Corporation. In addition, the operating revenues, net of operating expenses, of activities carried on as business-type enterprises are included to the extent that the transactions are recorded in Budget sector cash accounts. An overall net gain on government enterprise transactions of $1.5 million is estimated in 1975-76. Because of the transfer of Australian National Railways from the Budget sector to the non-Budget sector (discussed in the Appendix to the Budget Statements) no amounts are included for ANR in the table above for 1975-76. Most of the estimated increase in receipts from the sale of assets in 1975-76 is attributable to an estimated increase of $6.4 million from lease sales in the Australian Capital Territory, mainly reflecting an increase in estimated disposal of serviced residential blocks. {: .page-start } page 176 {:#debate-70} ### STATEMENT No. 5- BUDGET 1ESULT, 1974-75 {: .page-start } page 176 {:#debate-71} ### SUMMARY There was an overall deficit of $2,567 million in 1974-75, compared with the deficit of $570 million estimated at the time the Budget was brought down. Outlays totalled $17,831 million, $1,719 million more than the Budget estimate; receipts, at $15,264 million, were $277 million less than estimated. Post-budget decisions by the Government to assist particular sectors of the economy and help counter rising unemployment contributed most to the large increase over budgeted outlays. On the receipts side, too, measures taken during the year to stimulate the economy and improve employment opportunities had an impact on the outcome. Reductions in the rates of personal and company income tax in November 1974 resulted in total tax collections being lower than the Budget estimate. Many categories of outlays were affected by increases in wages and prices during 1974-75. The Budget estimates included an allowance of $150 million for the effects of increased rates of pay during 1974-75 on direct wage and salary payments by the Australian Government. In the event increased rates of pay added a little more than that to direct wage and salary payments in 1974-75; the additional payments involved have been allocated to the respective functional headings in the following table. Larger than assumed wage and salary increases raised expenditure on a number of other items, including the advance to the Post Office, recurrent grants to tertiary institutions and financial assistance grants to the States. {: .page-start } page 177 {:#debate-72} ### OUTLAYS Actual outlays in 1974-75 are compared with the Budget estimates in the following table: The main variations from the Budget estimates are discussed below. {:#subdebate-72-0} #### Defence Defence outlays in 1974-75 were $141 million greater than the Budget estimate. Manpower costs exceeded the Budget estimate by $91 million, reflecting increases in rates of pay and higher than estimated payments from the Defence Forces Retirement and Death Benefits Fund. The latter outcome was mainly the result of more retiring servicemen opting for lump sum payments than had been assumed, and of a postbudget increase in rates of pensions. The purchase of the Leyland complex at Zetland added $19.6 million to outlays for the acquisition of sites for defence purposes. Advances to the States for the provision of housing for servicemen exceeded the Budget estimate by $11 million; additional funds were provided to the States to meet increasing costs and better than estimated progress on construction, the latter resulting from readier availability of land, labour and materials. {:#subdebate-72-1} #### Education Total outlays on education exceeded the 1974-75 Budget estimate by $138 million. Recurrent payments to universities and colleges of advanced education were $97 million greater than the Budget estimate. Increases in academic salaries contributed $47 million towards this increase over the Budget estimate. Capital grants for colleges of advanced education totalled $33 million more than the Budget estimate; this was partly because of rising costs and partly because of a faster than expected rate of construction of new colleges. For similar reasons, capital grants to the States for Government schools were $37 million more than the Budget estimate. On the other hand, outlays for pre-schools and child-care centres in the States were $30 million less than the Budget provision because of difficulties encountered in implementing the first year of the expanded program of assistance. {:#subdebate-72-2} #### Health Outlays for health in 1974-75 were $53 million more than estimated in the Budget. Medical benefits exceeded the Budget estimate by $10 million, reflecting an increase in the rate of benefit payable from February 1975 and greater utilisation of medical services than originally estimated. Outlays on hospital services for ex-servicemen and women were $10 million more than the Budget estimate, with increases in wage and salary costs at repatriation institutions being the major contributing factor. An increase from October 1974 in the rate of benefit payable for pensioners was largely responsible for nursing home benefits being $15 million more than estimated. Payments for pharmaceutical benefits were $13 million more than the Budget estimate; dispensing fees were increased during the year, the volume of scripts processed was higher than assumed at Budget time and arrangements were introduced in New South Wales which involve part-payment of pharmacists' claims in advance of complete processing. There was a shortfall of $7 million in outlays on community health facilities because of delays in implementation of some projects. {:#subdebate-72-3} #### Social Security and Welfare Outlays for social security and welfare exceeded the Budget estimate by $241 million. The 1974-75 Budget estimate included an allowance of $70 million for pension and benefit increases following the Autumn review of benefit rates. In the event the Autumn increase is estimated to have exceeded the Budget allowance by $20 million. Supporting mothers' benefits were $10 million greater than the Budget provision, mainly because of a higher than expected number of beneficiaries. Because of the sharp rise in unemployment, payments of unemployment and sickness benefits were $133 million more than the Budget estimate. The higher level of unemployment also led to increases in outlays under the Regional Employment Development Scheme - $60 million compared with $25 million included in the Budget estimates - and to the provision of $40 million to the States in special employment creating grants. Income maintenance payments under the structural adjustment assistance scheme were $39 million more than estimated at Budget time. There were small shortfalls in a number of items, including war pensions and allowances ($4 million) and the Australian Assistance Plan ($2 million). {:#subdebate-72-4} #### Housing Outlays for housing were $301 million greater than the Budget estimate, reflecting in the main the Government's measures during the year to revive activity in the housing industry. Additional advances totalling $150 million were made available to the States for the expansion of their welfare housing programs. In November 1974 the Government announced that advances of $150 million would be provided to the savings banks to augment their normal lending for housing; of that amount $120 million had been drawn by the end of the year. With the more generous borrowing provisions introduced in the 1974-75 Budget, demand for defence service home loans increased sharply and advances were S15 million more than estimated. Repayments of principal of defence service home loans were $20 million less than the Budget estimate because sales of mortgaged houses and consequent discharges of liability were considerably less than assumed in arriving at the Budget estimate. *Urban and Regional Development nec and the Environment* Total outlays ascribed to this function fell short of the Budget estimate by $15 million. Delays in finalising and implementing agreements with the States resulted in a shortfall of $15 million in outlays on growth centres and a shortfall of $16 million in outlays on Land Commissions. On the other hand, outlays on financial assistance to the States for sewerage programs were $13 million greater than the Budget estimate as the States stepped up their sewerage works. {:#subdebate-72-5} #### Culture and Recreation Outlays for culture and recreation exceeded the Budget estimate by $9 million. Outlays on broadcasting services, which account for more than half of the total outlays within the function, were $10 million higher than the Budget estimate, largely on account of greater than estimated wage and salary payments. Outlays for wildlife and national parks fell short of the Budget estimate by $4 million; slow progress in land acquisition for nature conservation purposes was the main reason for the shortfall. {:#subdebate-72-6} #### Transport and Communication Outlays for transport and communication exceeded the Budget provision by $165 million. The advance to the Post Office was $133 million greater than the Budget provision; a larger than assumed increase in rates of pay was the main factor but other contributing factors included a shortfall in estimated receipts, increased interest payments and other cost increases. Following the Premiers' Conference in February 1975, an additional $30 million was made available to the States for road grants; in the event road grants actually paid over to the States exceeded the Budget estimate by $18 million. An extra $26 million was advanced to the Australian Shipping Commission to provide for the purchase of two ships, for a progress payment on two vessels under construction overseas and for cost increases associated with the devaluation of the Australian dollar in September 1974. Total outlays on rail transport, at $27 million, were $10 million more than the Budget estimate; payments of $5 million to Tasmania and $10 million to South Australia in connection with the transfer of the Tasmanian and non-metropolitan South Australian railway systems to the Australian Government were partly offset by shortfalls in outlays on a number of items, including the proposed Parramatta railway. Assistance to the States for the upgrading of urban public transport systems fell short of the Budget estimate by $22 million, reflecting delays in implementing the program. There was a shortfall of $9 million in advances to the Pipeline Authority stemming largely from delays occasioned by adverse weather conditions and industrial problems. {:#subdebate-72-7} #### Industry Assistance and Development Outlays for industry assistance and development were 1369 million more than was provided for in the 1974-75 Budget. The major factor in this increase was advances of $276 million to the Australian Wool Corporation to support the operation of the wool floor price scheme. No allowance was made for these advances in the Budget figuring. An advance of $20 million was made to the Commonwealth Development Bank mainly to enable it to help specialist beef producers. An amount of $56 million from the proceeds of a Government loan raised in the USA was on-lent to the Australian Industry Development Corporation; the Budget estimates did not include any allowance for payments to the AIDC in 1974-75. Export incentive grants exceeded the Budget estimate by $6 million. Payments to firms under the structural adjustment assistance program were $5 million below the Budget estimate because of difficulties experienced in processing applications and fewer than expected applications for assistance. {:#subdebate-72-8} #### Labour and Employment Total outlays for labour and employment were $20 million greater than provided for in the Budget. Outlays under the National Employment and Training System amounted to $30 million, an increase of $12 million on the Budget estimate. More people took up assistance for full-time training under the System than had been assumed at Budget time. {:#subdebate-72-9} #### Foreign Affairs and Overseas Aid Total payments for foreign affairs and overseas aid were $9 million more than the Budget estimate. Within this total there was a shortfall of $21 million in aid payments to Papua New Guinea; payments of termination benefits to former overseas officers of the PNG public service were not as great as expected because of the delay in the timing of independence, and portion of an allowance included in the estimates for wage and salary increases for overseas staff was not required. Payments to the Asian Development Bank were $5 million more than the estimate, the devaluation of the Australian dollar in September 1974 necessitating an increase in Australia's contribution to the capital of the Bank. There was an increase of $4 million in outlays under the Colombo Plan. Food aid provided under the International Wheat Agreement was $2 million more than the Budget estimate, with increases in the price of wheat primarily responsible. A payment of $3 million made for emergency relief for Indochina was not allowed for in the Budget. Administrative expenses under this heading exceeded the Budget estimate by $11 million, largely because of the effects on expenditure overseas of the September devaluation. *General and Scientific Research nec* Outlays within this sub-function were $11 million greater than the Budget estimate, mainly because of increased wage and salary costs within the Commonwealth Scientific and Industrial Research Organisation. {:#subdebate-72-10} #### Administrative Services Outlays on administrative services exceeded the Budget estimate by $52 million. The cost of wage and salary increases since the Budget accounted for most of the increase. *Payments to or for the States and Local Government Authorities nec and Natural Disaster Relief* A number of factors contributed to the increase of $262 million over the Budget estimate in outlays under this heading. Financial assistance grants to the States exceeded the Budget estimate by $46 million mainly because average wages increased faster than assumed at Budget time. To help maintain employment opportunities, it was agreed at the Premiers' Conference in February that State Government Loan Council programs be increased by $60 million over the Budget estimates and that special revenue assistance grants of $60 million be paid to the States. Special payments totalling $26 million were made to South Australia under arrangements agreed to with the State in connection with the State's withdrawal from the Grants Commission arrangements and the transfer of the South Australian non-metropolitan railway system; as indicated earlier, part of these grants ($10 million) has been allocated to the sub-function 'Transport and Communication'. Payments for natural disaster relief were $75 million more than estimated, largely on account of the Darwin cyclone; outlays of $66 million under this heading resulted from the cyclone. {:#subdebate-72-11} #### Public Debt Interest Payments of interest on public debt were $92 million more than the Budget estimate, mainly reflecting higher than forecast subscriptions to Treasury Notes during 1974-75. {: .page-start } page 181 {:#debate-73} ### RECEIPTS The Budget estimates for 1974-75 are compared with actual receipts in the following table: The main variations from Budget estimates, and the reasons for them, are indicated briefly below. {:#subdebate-73-0} #### Customs Duty Collections of customs duty were $71 million more than the Budget estimate. The value of imports subject to duty was greater than assumed at Budget time with the increase in Australian dollar prices of imports following the September devaluation more than offsetting the effects of the lower than estimated value of imports in 1974-75. {:#subdebate-73-1} #### Excise Duty Revenue from excise duty was $36 million less than the Budget estimate; clearances of all major dutiable goods were lower than assumed at Budget time. {:#subdebate-73-2} #### Sales Tax Sales tax collections were $49 million greater than the Budget estimate. The main reason for the higher collections was larger than assumed increases in prices of taxable goods. Higher than estimated sales and a faster than estimated increase in prices of motor vehicles more than offset the effect on revenue of the reduction in rates of sales tax announced on 28 January. *Income Tax - Individuals - Pay-as-you-earn* Gross collections of PAYE instalment deductions were $200 million less than the Budget estimate. The Budget estimate was based on assumptions that average weekly earnings would increase by 22.5 per cent in 1974-75 and that average employment would increase by 4.0 per cent (both on a male unit basis). In the event, the increases were about 26 per cent and 2 per cent, respectively, and the net effect would have been an increase in PAYE collections over the Budget estimate but for the reductions in rates of personal income tax announced in November 1974. It is estimated that these reductions in personal income tax rates lowered PAYE collections by around $440 million in 1974-75. Refunds of PAYE income tax collections were $82 million less than the. Budget estimate. The effect on refunds of taxpayers moving into and within that part of the tax instalment schedule that has a loading in it for concessional deductions other than for dependants was greater than expected; concessional deductions allowed on assessment were also less than expected. {:#subdebate-73-3} #### Income Tax - Individuals - Other Collections on assessment of income tax on individuals were $134 million less than the Budget estimate, in large part reflecting the lower rates of individual income tax announced in November 1974. Higher than estimated property and other business incomes in 1973-74 offset to some extent the effect of the lower rates on collections in 1974-75. {:#subdebate-73-4} #### Income Tax - Companies Company income tax collections were $121 million less than estimated at Budget time. The main reason for the lower than estimated level was the reduction in company tax rates announced as part of the November 1974 measures; the influence of the reduced rates was partly offset by a larger than estimated increase in company incomes in 1973-74 (assessed to tax in 1974-75). {:#subdebate-73-5} #### Other Taxes, Fees and Fines Collections of other taxes, fees and fines exceeded the Budget estimate by $10 million. The main variation was an increase over the Budget estimate of $8 million in unfunded employee retirement contributions resulting from wage and salary increases for servicemen during the year. {:#subdebate-73-6} #### Interest, Rent and Dividends Receipts from interest, rent and dividends were $30 million higher than the Budget estimate. As indicated already, the advance to the Post Office was significantly higher than the Budget estimate and interest paid on the advance exceeded the Budget estimate by $10 million. Other factors contributing to the higher receipts were $8 million in interest on the advance to the Wool Corporation and an increase of $5 million in bank interest. *Net Receipts from Government Enterprise Transactions* It was estimated at Budget time that net receipts from Government enterprise transactions would be $4 million. The outcome in fact was a net loss of $12 million, a difference of $16 million. Electricity supply enterprises made a loss of $6 million, $4 million more than the Budget estimate and the Australian National Railways made a loss of $7 million, $5 million more than the Budget estimate. {:#subdebate-73-7} #### Sale of Land and Buildings Receipts from the sale of land and buildings were $18 million less than the Budget estimate. Proceeds from lease sales in the Australian Capital Territory were $14 million lower than estimated. {: .page-start } page 183 {:#debate-74} ### FINANCING TRANSACTIONS The following table presents a summary of financing transactions in 1974-75: In most years, and 1974-75 was no exception, financing transactions have their main effects on the composition and distribution of financial assets rather than on incomes and demand. Some financing transactions, particularly those involving government securities in Australia, have important implications for monetary conditions and monetary policy which are distinct from the implications of the size of the deficit itself. Brief comments on the main 1974-75 financing transactions are provided below. *Net Drawings under Credit Arrangements for Defence Purchases in the United States of America* The *Loan (Defence) Acts* of 1966, 1968, 1970, 1971 and 1973 authorised the Government to finance defence equipment purchases in the United States of America on extended payment terms. No drawings were made under these arrangements in 1974-75; repayments of previous drawings amounted to $45 million. *Net Drawings under Credit Arrangements - Qantas Airways Limited and the Australian National Airlines Commission* Drawings on aircraft loans arranged on behalf of Qantas and the Australian National Airlines Commission amounted to $42 million and $17 million respectively; repayments of previous drawings for Qantas were $19 million and for the Australian National Airlines Commission $6 million. {:#subdebate-74-0} #### Net Proceeds of Other Overseas Borrowings During 1974-75 three public loans totalling $107 million were raised in Germany and Switzerland for the purpose of converting and redeeming maturing loans. One public loan involving new cash raisings of $75 million was arranged in New York ($56 million of the proceeds were raised on behalf of the Australian Industry Development Corporation and $7.5 million on behalf of the Australian Shipping Commission). Two private loans totalling $31 million were raised in Germany. Two maturities in London were redeemed at a cost of $45 million. Securities to the value of $41 million were repurchased or redeemed in New York, Germany, London, Canada and the Netherlands. Repayments of $9 million were made on borrowings from the IBRD. *Net Proceeds of Loan Raisings in Australia* Three Government public cash loans were raised in Australia in 1974-75, in July, February and May. The proceeds from cash loans during the year totalled $564 million. Cash proceeds from the sale of Special Bonds during the year totalled $343 million. Proceeds of $21 million from State domestic loan raisings and $1 million from Drought Bonds brought total cash proceeds from loan raisings in Australia to $929 million. Of the $823 million of securities (other than Special Bonds) maturing in Australia which were offered for conversion in 1974-75, an amount of $252 million was redeemed. Redemptions of Special Bonds of all series amounted to $382 million while market repurchases totalled $6 million, bringing total redemptions and repurchases to $640 million and net proceeds of loans raised in Australia in 1974-75 to $289 million. *Net Change in Treasury Notes on Issue* As at 30 June 1975 Treasury Notes on issue amounted to $2,076 million, an increase of $1,689 million on the amount on issue at 30 June 1974. {:#subdebate-74-1} #### Other Financing Transactions There were net outgoings of $73 million in other financing transactions in 1974-75. A surplus amount of $80 million was distributed from the Commonwealth Superannuation Fund to pensioners and contributors. {:#subdebate-74-2} #### Residual Financing To complete the financing of the deficit in 1974-75 Government cash balances were run down by $660 million; cash balances at 30 June 1975 stood at $765 million. These balances, and movements in their level from year to year, reflect the net cash results of all other transactions of the Australian Government. {: .page-start } page 185 {:#debate-75} ### STATEMENT No. 6- BUDGET TRANSACTIONS SINCE 1965-66 This Statement presents -Budget transactions since 1965-66 classified according to the two complementary methods of classification adopted throughout the Budget Speech and Statements. The *functional classification,* which was introduced in the 1973-74 Budget, categorises Budget outlays according to their primary objectives or purposes. This classification facilitates consideration of, and decisions on, the nature, extent and relative priorities of various Australian Government activities. The *national accounting classification* details Budget outlays by economic type and facilitates comparisons of Budget aggregates with other Australian National Accounts data. This classification is essential when it comes to assessing the overall economic impact of the Budget. {:#subdebate-75-0} #### Functional Classification Functionally classified historical Budget outlay data for the period 1965-66 to 1974-75 are presented in summary form in Table 1 on page 132, and in more detail in Table 2 on pages 133 to 139. In bringing together categories of outlays with similar objectives or purposes, the functional classification focuses attention on the nature of Government activities and the share of resources devoted to particular objectives. It also provides a logical framework within which programs can be developed to facilitate an assessment of the effectiveness of outlays in meeting objectives. An added advantage is that the functional classification generally adopts national accounting conventions for the definition of Budget outlays and receipts. This means that the figures used for the analysis and discussion of outlays by function are broadly in line with those used in the analysis of the economic impact of the Budget. The introduction of the functional classification and the concurrent adoption of national accounting conventions resulted in a number of important changes in the definition of Budget aggregates such as 'Total Outlays' (formerly Total Expenditures) and 'Total Receipts'. Further information on these changes and on the basis underlying the functional classification is given in the Appendix to the Budget Statements. The functional classification is essentially a re-classification of appropriation data, supplemented where possible with sub-costings of appropriation items of substantial magnitude that cover several functions. However, Table 2 provides less detail than do the tables in Statement No. 3, partly for ease of presentation and partly because some of the sub-costings necessary to eliminate the effects of all changes in accounting procedures and administrative arrangements are not available. To the extent possible the definitions and concepts followed in compiling this historical series are the same as those used in Statement No. 3. **Major discontinuities** are indicated where appropriate. {:#subdebate-75-1} #### Budget Sector Outlays Total outlays of the Australian Government Budget Sector increased at an average annual rate of 13.1 per cent over the period 1965-66 to 1974-75. Within that period, however, there were some significant changes in the rates of growth of the various functional categories of outlays. The distribution of total outlays between the broad functional categories and changes in that distribution from year to year provide some indication of the importance attached to particular programs and focus attention on changing objectives and priorities of public expenditure. Comparisons of trends in outlays over the period shown in the tables are affected by certain major developments such as the transfer of pay-roll tax to the States, 'offsets' to grants to the States, and changes in the operation of certain retirement benefit schemes. These factors are discussed in the Notes on Tables. The figures in the tables are in current prices and therefore reflect price increases as well as increases in resources devoted to particular functional categories. Because of differential rates of price increase between both functional categories and economic types of outlays, these figures distort to some extent comparisons of relative 'real' growth rates in outlays within and between functions. These considerations apply also to comparisons between public and private sector outlays. A comparison of outlays in the years 1965-66 and 1974-75. is given in the table below. The average annual rate of increase of total outlays over the period has been 13.1 per cent. But, as the table indicates, outlays on Education, Urban and Regional Development and Law, Order and Public Safety have grown at substantially higher rates. On the other hand, the growth in outlays on Defence and in payments of Public Debt Interest has been significantly less than average. Average annual rates of increase can mask movements within the period. The chart below shows the proportion of total outlays within the major functions in each of the past ten years. {:#subdebate-75-2} #### Budget Sector Receipts Details of Australian Government Budget sector receipts for the period 1965-66 to 1974-75, together with 1975-76 estimates, are presented in Table 4 on page 141. Data on the composition of Budget receipts in 1965-66 and 1974-75 are shown in the following table. The chart below gives an indication of the relative importance of the various categories of receipts in total Budget sector receipts over the ten years from 1965-66. By far the most important single category of receipts is income tax on individuals, which increased from 36.3 per cent of total receipts in 1965-66 to 50.5 per cent in 1974-75. This increase stems from the growth in net pay-as-you-earn income tax, which in turn reflects the effects of the progressive rate scale in a period of strong growth in wage and salary incomes, despite adjustments to the rate scale in 1970-71, 1972-73 and 1974-75. Taken together customs and excise duties and sales tax receipts have declined steadily as a proportion of total receipts. The major reason for the contracting share of 'Other General Taxation* in the total is that pay-roll tax revenue after 1972-73 relates to collections in the Australian Capital Territory and Northern Territory only, following the transfer of this tax to the States in 1971. The Government's decision, announced in the 1974-75 Budget Speech, to abolish broadcasting and television licences from 18 September 1974 also contributed to this contraction in 1974-75. {:#subdebate-75-3} #### The Budget Deficit The overall Budget deficit in each of the years 1965-66 to 1975-76 is shown in Table 1. There is a brief discussion of the Budget deficit in the next section. {:#subdebate-75-4} #### National Accounts Classification The national accounts for the economy as a whole provide a systematic summary of the transactions that take place within the economy, especially those relating to the production and use of goods and services, and to transfers of income or capital between sectors of the economy. The national accounts classify transactions into various categories and, by outlining the relationships between the categories, enable analysis of the processes by which production and expenditure are linked. Traditional methods of presenting estimates of public sector receipts and expenditure grew out of the requirement for maintaining parliamentary control over government spending. Estimates presented in a form suitable for this purpose do not necessarily lend themselves to an assessment of the economic impact of government financial activity. By presenting Budget sector data on a basis which is conceptually consistent with, and more easily related to, the national accounts for the economy as a whole, the National Accounting presentation of Budget transactions by economic type clarifies the nature of transactions between the public sector and the rest of the economy. The classification also provides a consistent framework within which the aggregation of Australian Government and State and local authority outlays and receipts is facilitated, to produce consolidated figures for the public sector as a whole. There is no single measure of the economic importance of government transactions. In terms of national accounting categories, the most direct influence that Budget outlays have on demand is by means of expenditure on final goods and services, i.e., the resources used in the provision of public goods such as defence, education, health and community amenities. Transfers and advances from the Budget to other sectors are also important, but the impact on economic activity of these outlays depends on the spending propensities of the recipients of the transfers and advances. For Budget receipts, it is also true that any assessment of their effect on the economy has to take into account the varying impact of different taxes and other receipts. The total economic impact of the Budget is an amalgam of all these influences. In a shorthand way the Budget deficit or surplus is usually taken as a summary measure of the Budget impact; like all summary measures, however, it is subject to a number of important qualifications. {:#subdebate-75-5} #### Australian Government Outlays The contribution of the Australian Government and its authorities to recent growth in the size of the public sector has been dominated by the transactions of the Budget sector. In 1974-75, for example, the Budget's direct call on resources, in the form of final expenditure on goods and services, represented over 75 per cent of final expenditure by the Australian Government sector as a whole. Advances from the Budget to Australian Government authorities also finance a significant part of final expenditures on goods and services recorded in the non-Budget sector. Direct expenditure on goods and services, however, represents only a moderate and, in recent years declining, proportion of total Budget outlays. The bulk of the Australian Government's budgetary transactions comprise transfer payments and advances to other sectors of the economy, including other government sectors. In 1974-75 transfer payments and net advances accounted for 78 per cent of total Budget outlays, of which almost half represented grants and net advances to State Governments. Table 3 attached to this Statement shows Budget outlays since 1965-66 on a national accounts basis. On this basis, transfers between different parts of the accounts of the Australian Government Budget sector are eliminated and additional detail included so that the figures shown relate to the transactions which occur between the Australian Government and the rest of the economy, including other levels of government, and overseas. The national accounts figures therefore show government transactions classified into economically significant categories comparable to those presented in the White Paper *National Income and Expenditure* 1974-75. Over the past decade there has been a tendency for Australian Government Budget outlays to grow somewhat faster than expenditures in the economy as a whole. The following table compares the average annual rates of growth of the main components of Budget outlays with the average annual rate of growth in gross national expenditure for the period since 1965-66. During the period 1965-66 to 1973-74 there was little change in the proportion of total Budget outlays to gross national expenditure, with fluctuations between a low of 24 per cent in 1965-66 and a peak of 25.3 per cent in 1972-73. In 1974-75, however, the proportion increased sharply to 30.4 per cent, reflecting the rapid growth in Budget outlays in that year. Total transfer payments have grown rather faster than direct expenditure on goods and services over the period. The patterns of growth of direct expenditure and transfers have, however, been similar. Taking the period as a whole, the Budget's *direct* call on resources, as measured by final expenditure on goods and services, grew strongly from 6.0 per cent of gross national expenditure in 1965-66 to 7.3 per cent in 1967-68; it declined ' thereafter to 5.9 per cent in 1973-74 but rose to 6.6 per cent in 1974-75. In assessing the total economic impact of the Budget on final demand for goods and services it is not sufficient, however, to look only at its direct call on goods and services. This is 'because, as noted previously, the larger proportion of Budget outlays is in the form of transfer payments, such as payments of pensions, subsidies, interest and grants, and the call on resources from such payments depends on the uses to which the recipients put the funds. Other Budget outlays take the form of advances, (e.g., to the States) and the economic impact of these is different again. Consequently, it is necessary to take account of variations in the composition of total outlays in analysing the Budget's impact. Expenditure on goods and services declined as a proportion of total Budget outlays from a peak of 29.1 per cent in 1968-69 (associated with the strong growth in defence spending in the preceding years) to 21.8 per cent 1974-75. On the other hand, cash benefits to persons have increased as a percentage of total outlays from 20.6 per cent in 1967-68 to 24.2 per cent in 1974-75. Although it is not possible to specify precisely the final use of funds transferred from the Budget in this way, it is known that many of the recipients of these benefits have very high marginal propensities to spend and thus this category of outlays is likely to have a fairly immediate impact on final demand for consumption goods. A major proportion of Australian .Government outlays comprises payments to the States. Because of changes from time to time in the methods of making such payments, it is more useful to look at 'Grants to the States' and 'Net Advances to the States' as one category. Considered as a whole, payments to the States have normally accounted for about one-third of Australian Government Budget outlays. Over the last ten years, the proportion has ranged between 31.3 per cent in 1968-69 and 35.9 per cent in 1974-75. These outlays finance, inter alia, the States' health and education services and their works and housing programs. As with cash benefits, it is not practicable to trace through precisely the final use of all these funds from the Budget. Moreover, the timing of outlays by the States can differ from the timing of payments to them of funds to finance those outlays. Advances other than to the States are distributed chiefly within the Australian Government sector itself in the form of advances to government instrumentalities operating outside the Budget. These include the Postal and Telecommunications Commissions, the Australian National Airlines Commission, Qantas Airways Limited, and the Snowy Mountains Hydro-electric Authority. Advances to such authorities in 1974-75 amounted to $1067 million or 6.0 per cent of Budget outlays. Again, it is not practicable to trace through the precise utilisation of the funds advanced to these instrumentalities from the Budget. It is, however, possible to offset transfers between the Budget and non-Budget sectors of the Australian Government and to consolidate outlays, other than inter-sector transfers, to form a statement of the outlays and receipts of the Australian Government sector as a whole. The method of consolidation used is outlined in the September 1974 Supplement to the Treasury Information Bulletin. Table 5 attached to this Statement sets out national accounts estimates of the main categories of receipts and outlays of the Australian Government sector as a whole for the period since 1965-66. Total outlays by the non-Budget sector amounted to $1558 million in 1974-75. There are some significant differences between the relative composition of outlays of the Australian Government sector as a whole and that of the Budget sector alone. The following table details the respective compositions of outlays for 1974-75. As the table shows, final expenditure on goods and services represents a greater proportion of total Australian Government outlays than of Budget outlays. The relatively greater outlays of the non-Budget authorities for capital purposes lift capital expenditure from 2.3 per cent of Budget sector outlays to 9.3 per cent of total outlays; the pattern is reversed in the case of advances. *Total Public Sector Direct Expenditure on Goods -and Services* Taking into account State Government and local authorities, the relative size of total public sector direct expenditure on goods and services remained fairly steady until 1974-75. The following table shows the trend' in the public sector's share of final goods and services over the period since 1965-66. The very sharp rise in the share of resources going to the public sector in 1974-75 reflected a combination of increased demands by governments and particularly by the Australian Government, on the resources of the economy, and the downturn in private sector activity. The growth pattern of final consumption expenditure on goods and services, however, has differed from that of capital expenditure. In most years since 1965-66, public sector final consumption expenditure 'has grown at a faster rate than gross national expenditure, the ratio increasing steadily from 11.2 per cent in 1965-66 to 15.4 per cent in 1974-75. Public capital expenditure growth has been more erratic; its share of gross national expenditure reached a peak of 9.8 per cent in 1965-66, and declined to a low-point of 7.9 per cent in 1973-74 before rising to 9.2 per cent in 1974-75. {:#subdebate-75-6} #### Budget Receipts Total budget receipts in national accounts terms have increased at an annual average rate of 13.1 per cent over the period from 1965-66, rising from 23.3 per cent of gross domestic product in 1965-66 to 26.1 per cent in 1974-75. These receipts comprise taxes of various types together with a number of other charges, interest, rent and dividends. As with outlays, different types of receipts have different effects on the economy. Taxes on incomes, for example, influence private demand for goods and services through their effect on the level of disposable incomes; sales taxes, on the other hand, affect private demand through the prices of goods. Consequently, the 'mix' of 'Budget revenues, as well as their total size, needs to be considered in any assessment of the overall impact of the Budget on the economy. {:#subdebate-75-7} #### The Overall Budget Result The Australian Government has incurred deficits on its budgetary transactions over the decade 1965-66 to 1974-75 (see Table 1). Estimates of the domestic budget result (see Statement No. 1) are available only for the years since 1968-69. These estimates are shown in the following table, along with the overall Budget result for the same years. The table also shows that, expressed as a proportion of gross domestic product, the overall deficit in 1974-75 was more than twice as large as the next highest deficit over this period. The main financing transactions undertaken to meet the deficits in the Budget over the period have been domestic and overseas loan raisings, the issue of Treasury Notes, and temporary borrowings from the Reserve Bank. Details of these financing transactions are given in Table 6 attached to this Statement. Notes on Tables To the extent practical, historical data have been adjusted to eliminate major breaks in series. However, some important changes which affect year to year comparability cannot be readily removed. At the Premiers' Conference in June 1971 it was agreed that the Australian Government would cease to levy pay-roll tax in the States as from 1 September 1971 and that the States would levy their own pay-roll taxes as from the same date. This decision resulted in a reduction in Australian Government pay-roll tax revenues estimated at $253 million in 1971-72. To offset most of this loss in revenue, financial assistance grants paid to the States in 1971-72 were reduced. The full-year effect of these transfer arrangements is reflected in the 1972-73 figures for outlays and receipts. The transfer arrangements had the effect of reducing the growth of outlays and receipts below the rate that would otherwise have been recorded by approximately 3 percentage points in 1971-72 and about 1 percentage point in 1972-73. The figures shown in the Tables reflect these lower growth rates. Comparisons between 1972-73 and subsequent years are not affected by the transfer since no significant effects of the changeover continued beyond 1972-73. Increases in special purpose payments to the States are recorded under the appropriate functional heading, while 'offsetting adjustments' to General Revenue Assistance Grants to the States are taken into account under the functional heading 'Payments to or for the States and Local Government Authorities nec and Natural Disaster Relief. In the 1973-74 the assumption of full financial responsibility for universities and colleges of advanced education by the Australian Government contributed to an increase in outlays classified to 'Education', but also involved a compensating decline in general purpose funds provided to the States. This means that the rate of increase in Australian Government resources devoted to education, as shown in the function 'Education', is somewhat overstated. A similar effect occurs in 1974-75, which was the first full year of the new tertiary education arrangements; these arrangements applied only to the second half of 1973-74. Changes in the operation of the Defence Forces Retirement and Death Benefits, Ministerial Retiring Allowances and Parliamentary Retiring Allowances Schemes affect the outlays for 1973-74 and subsequent years under the function Defence, and under the receipts headings 'Other Taxes, Fees and Fines - Unfunded Retirement Benefits Contributions'. These changes involved a move from funded schemes to unfunded benefit schemes. Notes on Tables 1 and 2: Budget Sector Outlays Classified by Function The 1956-66 Housing Agreement was not renewed on its expiry at the end of 1970-71. Instead, the Australian and State Governments agreed on arrangements under which housing allocations would be met, in the same way as other expenditures, by the States out. of their approved Loan Council borrowing programs. Amounts totalling $160 million in 1971-72 and $166.9 million in 1972-73 were subsequently allocated by the States for housing projects similar in nature to those covered by the 1973 Housing Agreement. Tables 1 and 2 show these amounts classified to 'Payments to the States etc' instead of 'Housing'. However, for the purposes of the calculation of the trend rate of growth and the chart of proportions of total outlays these amounts have been included in the function 'Housing'. Because of revisions in the classification of items to the various functional headings (see Appendix to the Budget Statements) the figures in these two tables are not directly comparable with those given in the Budget documents for previous years. Notes on Table 3: Figures in National Accounts Terms - Budget Sector Outlays *Net Expenditure on Goods and Services* This heading covers direct purchases of domestic output and imports, and includes wages and salaries of government employees and pay and allowances of defence forces. Any recoupments of such expenditures from other sectors of the economy or overseas are netted off. Current and capital expenditure are shown separately. In accordance with national accounting conventions, the cost of purchasing equipment for defence purposes is classified as current expenditure. {:#subdebate-75-8} #### Transfer Payments Current payments to other parts of the economy or overseas, other than payments for goods or services supplied, but including the purchase of existing assets, are listed in their various forms under this heading. {:#subdebate-75-9} #### Net Advances Loans, advances and additional capital made available by the Australian Government are shown in the respective items under this heading. Repayments of loans and advances are deducted to arrive at the net figures. Notes on Table 5: Australian Government Sector The method of presentation of national accounting estimates and expenditures for the Australian Government sector as a whole is discussed in Chapter II of the Supplement to the Treasury Information Bulletin, *National Accounting Estimates of Receipts and Outlays of Australian Government Authorities.* Notes on Table 6: Financing Transactions The figures for 'loan proceeds' and 'drawings on credit arrangements' include the actual cash proceeds from loans, etc., credited to Loan Fund in 1974-75, or their equivalents for the earlier years. The figures for loan proceeds in Australia include amounts raised through State domestic loan raisings but exclude amounts subscribed by the Australian Government to Special Loans. The redemption and repayment items, both 'Overseas' and 'Australia', consist of outlays incurred in reducing the amount of debt outstanding (other than temporary borrowings by way of Treasury Bills and Notes). They include outlays on redemptions, repurchases and repayments from the National Debt Sinking Fund and outlays on redemptions, etc., from Loan Fund, from the Consolidated Revenue Fund and from the Canadian and Swiss Loan Trust Accounts. {: .page-start } page 211 {:#debate-76} ### APPENDIX TO THE BUDGET STATEMENTS- THE FUNCTIONAL CLASSIFICATION OF BUDGET OUTLAYS The purpose of the functional classification is to bring together outlays with like objectives' or purposes. In this way the classification aims to present information on the nature of government activities and on the share of resources devoted to particular objectives, and to facilitate assessments of the effectiveness of outlays in meeting objectives. Compared with the classification used in Budget Statements prior to 1973-74, the functional classification has the added advantage of being based on national accounting conventions. There is thus a consistent conceptual basis underlying both the economic classification and the functional classification. This removes a considerable source of confusion which existed in Budget documents prior to 1973-74 when two conceptually different classifications were used - the so-called 'conventional' classification and the national accounting classification. Basis of the Functional Classification The conventions and principles used in the functional classification are essentially those set out in the publication *A System of National Accounts,* United Nations, New York 1968. That classification is a widely accepted international standard for the classification of public expenditure by function. It is also used by the Organisation for Economic Co-operation and Development as a basis for the development of internationally comparable statistics on the public sector. The Australian Bureau of Statistics has concurrently adopted these conventions and principles in the documents it publishes on public authority finance. While the major functional headings adopted for budget purposes are conceptually consistent with those used by the Statistician in his publications, it should be noted that the figures published by the Bureau for Australian Government outlays cover both budget outlays and outlays by Australian Government authorities which operate outside the budget sector. They therefore differ somewhat from the figures shown for the budget sector in the Budget Statements. Information on the transactions of authorities operating outside the budget sector is shown in the Supplement to the Treasury Information Bulletin entitled *National Accounting Estimates of Receipts and Outlays of Australian Government Authorities,* which is published with the Budget documents. Two further differences should be noted. First, outlays on primary industry assistance are shown in the Budget Statements 'net' of the relevant primary industry levies and charges; these outlays are shown on a gross basis by the Statistician. Secondly, part of the expenditure incurred by some Australian Government departments and instrumentalities operating in Papua New Guinea is classified by the Statistician as foreign aid. These outlays, however, are shown under the same functional heading in the Budget Statements as similar outlays made within Australia. Supplementary information on the functional allocation of these outlays is available in the Bureau's publication *Public Authority Finance - Authorities of the Australian Government.* With the transition to independence in 1975 this difference in treatment should disappear in respect of future years. The Structure of the Functional Classification The major functional headings are shown in the summary table in Statement No. 3. Brief descriptions of the contents of each function are given below. These descriptions are intended to convey the scope of the outlays included under each heading rather than to be a detailed listing of the contents of each category. Further detail on each function is provided in the body of Statement No. 3. Historical data for the period 1965-66 to 1974-75 are given in summary form in Statement No. 6. From an examination of the classification structure set out in the Budget Statements it will be evident that the functional classification is relatively aggregative in nature. On the whole it has not been possible, for example, to dissect the administrative outlays of departments and to allocate them over the particular sub-categories shown under each functional heading. Outlays under each functional heading in the classification have been grouped together into readily identifiable expenditure blocks. These expenditure blocks do not, as a rule, purport to represent detailed purpose-oriented sub-functions or programs; rather, they are meant as recognisable and meaningful groupings which lend themselves to discussion and analysis. Nevertheless, the main' outlay blocks are decidedly more purpose-oriented than was the case with the categories of expenditure identified under the conventional classification used in the past. Given the need to produce a continuing and up-to-date record of actual monthly outlays and receipts which is consistent, with the overall estimates embodied in the Budget Speech and documents, it has been necessary to work largely within existing central accounting records. These records are, at present, built around the Appropriation Acts, which are the legal authority for expenditure rather than detailed costing documents. The figures presented have, therefore, been derived essentially by reclassifying appropriation data, supplemented where necessary by a limited number of sub-costings of substantial appropriation items which cover several functions. It should also be noted that the functional categories do not necessarily correspond with appropriation or departmental structures. Furthermore, some outlay and receipt figures are netted in arriving at aggregates. Expenditure votes and revenue heads under the control of a particular department may, therefore, be classified under more than one functional heading and it will not always be possible to identify individual appropriation items in the Statements. The introduction of the functional classification does not, however, alter the structure of the appropriations or the summaries presented with the Appropriation Bills, such as the document *Estimates of Receipts and Summary of Estimated Expenditure.* Although the basic aim of a functional classification scheme is to reveal the broad purposes for which government outlays are undertaken, it is important to note that such a classification cannot always be applied unambiguously. Particular outlays will often serve two or more distinct functions. Military colleges, for example, may be said to serve both a defence and an education purpose. The application of a functional classification scheme, however, requires that an outlay be classified to the function which it is considered primarily to serve. In the example above, the primary function is considered to be defence; this is in line with United Nations recommendations. In any single classification system, it is not possible to focus at one and the same time on every outlay characteristic that may be of interest to the Government or the public. Supplementary information on particular aspects of expenditure is therefore provided in other documents; for example, details of wage and salary estimates are shown in the document *Estimates of Receipts and Summary of Estimated Expenditure* and a separate White Paper is provided on *Payments to or for the States and Local Government Authorities.* Other supplementary Budget Papers issued with the Budget Speech this year deal with the Civil Works Program, Education, Urban and Regional Development and Australia's Overseas Development Assistance. {:#subdebate-76-0} #### The Implications of Adopting National Accounting Conventions As indicated earlier in this Appendix, the use of definitions of budget outlays and receipts based on national accounting conventions places budget data on a basis which, in the main, is conceptually consistent with national accounting information published by the Bureau of Statistics and can be related to trends in the public sector and in the economy reflected in that information. The principles underlying the national accounting presentation of budget data are set out in the Appendix to the Supplement to the Treasury Information Bulletin entitled *National Accounting Estimates of Receipts and Expenditure of Australian Government Authorities,* September 1974. Concurrent with the introduction of the functional classification in 1973-74, some changes were made to the previous national accounting definitions of outlays, receipts, the deficit, and their components used in the Budget Statements. The more significant of these changes were: {: type="a" start="a"} 0. net advances to the Australian Wheat Board are now treated as outlay items rather than financing transactions as in the past. This brings the classification of these short-term advances into line with that accorded to other advances from the budget; 1. purchases of land and existing buildings (including inter-departmental transfers for which a financial adjustment is made) are now treated as outlays rather than offsets to the proceeds from the sale of these assets under a receipts heading. This change permits gross outlays on these assets to be shown under the appropriate functional headings. Other conceptual changes in line with the principles set out in the publication *A System of National Accounts* were also introduced. These changes relate mainly to the treatment of rents and business enterprise transactions and are indicated in the September 1974 Supplement to the Treasury Information Bulletin. Overall, they do not have a very significant effect on the figures shown for total receipts and total outlays. The adoption of national accounting conventions implies that the receipts and outlay figures shown in the Statements attached to the Budget Speech relate, for the most part, to the net transactions of the budget sector with the rest of the economy. Some important characteristics of the national accounting treatment shown in the Statements are: {: type="a" start="a"} 0. the transactions of various Funds forming the Public Account (the Consolidated Revenue Fund, Trust Fund and Loan Fund) are consolidated and inter-fund transfers are eliminated. For example, payments to the Aboriginal Advancement Trust Account are not shown as part of outlays; rather, the expenditure from that Trust Account is included. The aim is essentially to record the transactions between the budget sector and the rest of the economy. Allowance is made, however, for adjustments between functions arising from the transfer of existing assets where financial adjustments for these transfers are recorded; 1. receipts derived from activities which are essentially of a governmental nature, involving regulation and compulsory payment, are normally treated as revenue items. As mentioned earlier, however, the various primary industry levies and charges which are collected by the Government and applied more or less directly for the purposes of commodity stabilisation, research and promotional activities are now offset against the relevant outlays. Other recoveries and repayments are normally offset against the relevant outlays to arrive at net outlay figures. For example, repayments of principal on advances to other authorities are offset against the corresponding advances under the same outlay heading. Bringing together the revelant outlays and recoveries or repayments makes it possible to see more readily the extent of financial resources which are directed through the Budget to a particular activity. Other taxes, compulsory charges, licence fees and the like which are more of a general revenue nature continue to be treated as receipts items under the heading 'Other Taxes, Fees and Fines'; 2. the operating revenues of activities which are carried out as business-type enterprises are shown net of operating expenses as receipts items and do not appear in the outlay tables. The current operations of enterprises are therefore reflected in the Budget Statements to the extent that they contribute to general budget revenues; and 3. certain transactions which are netted in published totals of the receipts and payments of the Public Account are shown in gross form. The more important of these are interest on loans raised by the Australian Government for State works programs and for the Australian National Airlines Commission and Qantas Airways Ltd. Interest paid on these loans is included under the outlay heading 'Public Debt Interest', while interest received on advances made to the relevant authorities is included as a receipts item. This has the effect of making the coverage of interest in the Statements the same as the coverage of the debt to which it relates. Changes in the Functional Classification Because the organisation for and coverage of government activity is not static, changes need to be made to the functional classification headings or their contents from time to time. For example, following the administrative rearrangements announced in June 1974, the various outlays on 'Immigration' (shown as a separate function in Budget Statements in 1973-74) were allocated to appropriate functions, including the renamed 'Labour and Employment' function (previously 'Employment Conditions'). The principal changes made to the contents of the functional headings this year are indicated below: {: type="a" start="a"} 0. Defence. The amalgamation of the Departments of Supply and Secondary Industry to form the Department of Manufacturing Industry (June 1974), together with the transfer of Stores and Transport and purchasing activities to the Department of Services and Property (June 1975), have necessitated reconsideration of the previous practice of classifying some outlays associated with these activities to 'Defence'. A basis for apportioning these activities between defence/civil has now been determined and expenditure allocated accordingly. The civil component of 'Storage and Transport' is now shown as a common services item, as is expenditure associated with central purchasing activities. The historical series has been adjusted, as far as data allow, to a comparable basis. {: type="a" start="b"} 0. Rents. Previously, payments of rent for civilian accommodation leased by the Government and controlled by the Department of Services and Property were allocated on the best basis possible, to the appropriate functional headings. The costs of government-owned office accommodation however were treated as a common service and not allocated. To remove this divergence in treatment it has been decided to treat civil rent payments as a common service item also. 1. Railways. The Australian National Railways (ANR) has replaced the Commonwealth Railways. In the past Commonwealth Railways has been treated as a departmental enterprise within the budget sector; its capital payments were shown as outlays under the heading 'Transport' while operating receipts were offset against expenditure under the receipts heading 'Net Receipts from Government Enterprise Transactions'. Under the new arrangements ANR is to be treated as an enterprise outside the budget sector, with advances for capital purposes and an operating subsidy being shown as outlays. For the moment there is a break in the series at 1975-76 but if it proves possible to do so data for earlier years will be adjusted to a comparable basis in next year's Statements. 2. As already indicated, it has been decided to offset primary industry levies and charges against the relevant outlays rather than show them as receipts under the heading 'Other Taxes, Fees and Fines' as previously. The effect of this new treatment is to show more clearly outlays on assistance to primary industries which are financed out of general revenue. Because the functional classification is derived largely from existing appropriation accounting data, adjustments to the functional classification are constrained by availability of suitable data in that system. In particular, the major changes to departmental administrative arrangements announced in December 1972, June 1974 and June 1975 have made it difficult to produce a strictly consistent set of outlay aggregates for the periods covered in the Budget Statements. Where possible, the more important discontinuities have been eliminated by the sub-costing and re-grouping of appropriation data, but it has not been practicable to eliminate all inconsistencies and produce an entirely comparable series. This should be borne in mind when examining the tables in Statement No. 3 and, more particularly, Statement No. 6. For all these reasons, considerable care must be exercised when comparing functionally classified data in the 1975-76 Budget Statements with those in Budget Statements for earlier years. {:#subdebate-76-1} #### Descriptions of Functions The following notes describe briefly the scope of the net outlays encompassed under each functional heading. {: type="1" start="1"} 0. *Defence* Outlays on military defence, including outlays to keep the armed services in a state of readiness. Includes outlays on central administration and on research in connection with activities carried out for defence purposes; outlays on miltary construction and equipment, inspection, transport and storage; all outlays on recruiting, training, equipping and housing the armed forces, and on medical care and other services for them; outlays on military colleges; expenditure for the provision of quarters for families of military personnel; outlays on pensions and other payments for military personnel under the Defence Forces Retirement and Death Benefits Scheme; outlays on civil defence; outlays on foreign military aid and contributions to international military organisations and alliances. {: type="1" start="2"} 0. *Education* Outlays on the provision, management and support of educational services from pre-school level through to higher school certificate level, trade and technical courses, courses in music, fine arts, etc., and of university and other higher education. Includes outlays relating to the provision of scholarships and allowances to students at all levels; special educational programs designed specifically for the benefit of persons of Aboriginal descent, for migrants and for handicapped children; expenditure on non-vocational adult education courses, school bus services, and general administration, regulation and research activities related to education. {: type="1" start="3"} 0. *Health* Outlays on facilities or services for the prevention and treatment of human illness, includes outlays related to the prevention of diseases, such as chest X-ray campaigns, immunisation and vaccination programs', regulation of standards of sanitation, etc.; outlays concerned with the provision of hospital and clinical services, including treatment and care of those suffering from psychiatric disorders, infectious diseases, etc., and expenditure on nursing schools associated with hospitals. Also includes the payment of hospital, nursing home, medical and pharmaceutical benefits which are designed to cover all or part of the costs of hospitalization and medical treatment and care of specific groups, such as persons of Aboriginal descent, the aged, former members of the armed forces and their dependants; community health centres, centres for the treatment of drug addicts, and domiciliary care services; general administration, regulation and research related to health matters. {: type="1" start="4"} 0. *Social Security and Welfare* Provision of pensions and allowances and other benefits to persons who, because of age, physical or mental disability, domestic circumstances or other reasons, are unable or not expected to earn a sufficient livelihood for themselves and their dependants. Includes the provision of benefits such as unemployment benefits, age and repatriation pensions, accident and sickness benefits, other benefits to compensate for loss of income and unemployment relief schemes. Provision of financial assistance towards the expenses associated with the bearing and raising of children, marriage guidance and child care facilities, other social security benefits, child welfare services and institutions, homes for and care of the aged and disabled and welfare programs to meet specific needs of disadvantaged groups. {: type="1" start="5"} 0. *Housing* Outlays on the provision of dwellings for sale or rental, and mortgage finance for purchase or construction of dwellings, other financial assistance aimed at facilitating the purchase or construction of dwellings or home ownership. General administration, regulation and promotion of standards, and research in the field of housing. {: type="1" start="6"} 0. *Urban and Regional Development nec and the Environment* Urban and Regional Development nec: Outlays on general promotion and assistance for urban and regional planning and development. Includes outlays on the development of new cities or suburbs where it is not possible to distinguish expenditure as specifically for housing, roads, sewerage or other purposes, or it is not appropriate to classify the expenditure to other categories (such as in the case of major urban sub-division or renewal outlays, including the purchase of land for such purposes). Administrative costs of departments and agencies engaged in urban and regional planning and development and miscellaneous outlays on the provision of community amenities. Environment: Outlays on water quality control, air pollution and monitoring and other outlays related to pollution prevention and protection of the environment including research, planning and investigation. Sewerage and Sanitation: Outlays on the treatment and disposal of sewage, refuse collection and disposal. {: type="1" start="7"} 0. *Culture and Recreation* Outlays related to the support of performing and creative arts; support of organisations concerned with sporting and other leisure-time activities, and provision of facilities serving purposes primarily related to these activities, such as swimming pools, community centres, athletic fields, etc.; contributions to youth and social organisations; outlays on the protection and preservation of historic sites and buildings, parks and wildlife reserves, and other elements of the national estate; outlays on the provision and operation of government radio and television broadcasting services. {: type="1" start="8"} 0. *Economic Services* This category covers regulation of and assistance provided to, the private sector; direct government participation in economic activity and provision of economic infrastructure. {: type="A" start="A"} 0. *Transport and Communication.* Outlays concerned with postal services, and domestic and overseas telecommunications; outlays on construction, maintenance, promotion, administration and research relating to the various modes of land, sea and air transport, including urban transportation systems and pipelines for petroleum and gas transport. (Road traffic control services are shown under the category 'Law, Order and Public Safety'.) 1. *Water Supply and Electricity.* Outlays on construction and other assistance, regulation and research in connection with the production, transmission and distribution of electricity; and on the conservation, collection, purification and distribution of water primarily for domestic and industrial consumption. 2. *Industry Assistance and Development.* Direct assistance to primary, secondary or service enterprises in forms such as bounties, subsidies, export incentives, advances from the Budget and other transfers including payments to ensure guaranteed prices for commodities or to maintain the prices of commodities below their normal market price; support of agricultural and other industrial research and development and of promotional activities including export promotion; outlays on the management of timber and fishery resources; provision of veterinary, extension and other services to agriculture; land clearing, reclamation and settlement activities, outlays on programs of rural debt reconstruction and farm rehabilitation; investigation, measurement, development and management of water resources for irrigation and pastoral purposes and rural flood mitigation; assistance and encouragement of mineral exploration; geological surveys; development of tourist facilities and tourist promotion; administration, promotion, regulation and research, directly associated with specific primary, secondary or service industries. 3. *Labour and Employment.* Outlays related to the regulation of working conditions, the prevention and settlement of industrial disputes and the enforcement of industrial awards and agreements; programs designed to facilitate changes of occupation by persons displaced by redundancy, occupational training schemes for adults including assistance to enter or re-enter the work-force, provision of labour exchange facilities; outlays directly related to the assisted passage migration scheme; general administration, regulation and research in the field of labour affairs. 4. *Other Economic Services.* Outlays related to regulation of monopolies and restrictive trade practices, price control and justification, regulation of the tariff, other forms of business regulation; outlays on patents and trade marks administration, outlays on meteorological services and other technical services not allocable to specific kinds of industry; outlays on general administration in the area of economic and commercial affairs not allocable to other outlay categories within the 'Economic Services' function. {: type="1" start="9"} 0. *General Public Services* This category covers outlays on a number of general public services and activities concerned with the organisation and operation of government. {: type="A" start="A"} 0. *Legislative Activities.* Outlays of the legislative and executive bodies of government, including parliamentary committees and the operation of the Governor-General's establishments; outlays related to the conduct of elections and maintenance of registers of voters. 1. *Law, Order and Public Safety.* Outlays on law courts (other than those concerned with industrial relations) and bodies concerned with the administration of the legal system and preparation and execution of law court action; provision of legal aid; registration of legal titles to property; outlays in respect of prisons and other places of detention and correction, and probation services; police services, including traffic control; fire protection and other public safety promotion or services; general administration and research related to these activities. 2. *Foreign Affairs and Overseas Aid.* Outlays of departments and agencies charged primarily with the handling of foreign relations; administration and other expenditure relating to external territories; and outlays on foreign economic aid and contributions to international bodies other than military alliances and organisations. 3. *General and Scientific Research.* Contributions for the promotion of and outlays on, basic and general research in the biological, physical and social sciences, which cannot readily be classified to other outlay categories or linked with the provision or promotion of a particular service or activity. 4. *Administrative Services.* Outlays on the collection of taxes, raising public loans, managing public debt, and controlling the disbursement and audit of public funds. Outlays on general services for the government as a whole, such as statistical services, the purchase and operation of government buildings and equipment (including the construction, repair and maintenance of general purpose buildings), rent, office cleaning, personnel and other administration. General administrative expenses of departments covering a variety of government activities and which cannot be readily apportioned over relevant functions are also included under this heading. {: type="1" start="1"} 0. *Outlays Not Allocated to Function* 5. *Payments to or for the States and to Local Government Authorities nec and Natural Disaster Relief.* General purpose grants and advances to State and other local government authorities which may be spent at the recipient's discretion and grants not classifiable to specific functions. This category includes payments to assist the States to meet debt charges. Payments to States and direct assistance for the relief of victims of drought, flood, fire and other natural disasters, and for the restoration of community services and facilities. Long run specific reconstruction is, to the extent possible, classified according to purpose. {: type="A" start="B"} 0. *Public Debt Interest.* Net interest payments made from the budget sector to other sectors, including interest payments on government securities, or under credit arrangements with other countries. Interest received from Government investments in Australian Government securities is offset against gross interest payments. {: .page-start } page 219 {:#debate-77} ### APPROPRIATION BILL (No. 2) 1975-76 Message from the Governor-General recommending appropriation for proposed expenditure announced. Bill presented by **Mr Hayden,** and read a first time. {:#subdebate-77-0} #### Second Reading {: #subdebate-77-0-s0 .speaker-RK4} ##### Mr HAYDEN:
Treasurer · Oxley · ALP -- I move: >That the Bill be now read a second time. This Bill contains details of proposed appropriations of the Consolidated Revenue Fund in 1975-76 totalling $2,268,980,000 for expenditure on: (a) the construction of public works and buildings; (b) the acquisition of sites and buildings; (c) advances and loans; (d) items of plant and equipment which are clearly definable as capital expenditure; (e) grants to the States under section 96 of the Constitution; and (f) new policies not authorised by special legislation. Included in the above total is an amount of $120m as an advance to the Treasurer for the purposes set out in the Bill. The proposed expenditures in this Bill were dealt with as appropriate in my Budget Speech. I commend the Bill to honourable members. Debate (on motion by **Mr Sinclair)** adjourned. {: .page-start } page 219 {:#debate-78} ### BUDGET 1975-76 {: #debate-78-s0 .speaker-RK4} ##### Mr HAYDEN:
Treasurer · Oxley · ALP -- For the information of honourable members, I present the following papers in connection with the Budget for 1975-76: {:#subdebate-78-0} #### Estimates of Receipts and Summary of Estimated Expenditure 1975-76 {:#subdebate-78-1} #### Civil Works Program 1975-76 Government Securities on Issue at 30 June 1975. Payments to or for the States and Local Government Authorities 1975-76. {:#subdebate-78-2} #### Education 1975-76 {:#subdebate-78-3} #### Urban and Regional Development 1975-76 {:#subdebate-78-4} #### Australia's Overseas Development Assistance 1 975-76 {:#subdebate-78-5} #### National Income and Expenditure 1974-75 {:#subdebate-78-6} #### Income Tax Statistics Ordered that the papers be printed. {: .page-start } page 219 {:#debate-79} ### TARIFF PROPOSALS {: #debate-79-s0 .speaker-8H7} ##### Mr ENDERBY:
CanberraAttorneyGeneral · ALP -I move: >Excise TariffProposals No. 1 (1975). {:#subdebate-79-0} #### Customs Tariff Proposals No. 24 (1975) Excise Tariff proposals No. 1 and Custom Tariff Proposals No. 24 which I have just tabled introduce the tariff changes foreshadowed by the Honourable the Treasurer **(Mr Hayden)** in his Budget Speech this evening. The Proposals increase the duties of excise and customs on beer, manufactured tobacco products and spirits and impose a new excise duty on the production of crude oil, condensate and naturally occurring liquefied petroleum gas. The increases operate from 8 o'clock this evening. The increase on beer represents an increase of about 4c in the duty component on a 10-ounce glass of beer. The proposals increase the rate of duty on cigarettes equivalent to 6c per packet of twenty. The increase of 86c per litre of alochol on spirits other than brandy is equivalent to lc per nip or 26c per bottle. The increase in the rate of duty on brandy is $1.26 per litre of alcohol. This increase consists of 2 factors. These are firstly an increase of 86c per litre of alcohol as in the case of other spirits and secondly an increase of 40c per litre of alcohol representing the completion of the 3-year phase-out of the duty differential between brandy and other spirits which was announced in the 1973 Budget. A summary of these alterations is being circulated to honourable members. I commend the Proposals. Debate (on motion by **Mr Adermann)** adjourned. {: .page-start } page 219 {:#debate-80} ### CUSTOMS TARIFF PROPOSALS {: #debate-80-s0 .speaker-8H7} ##### Mr ENDERBY:
CanberraAttorneyGeneral · ALP -- I move: {:#subdebate-80-0} #### Customs Tariff(Coal Export Duty) Proposals ( 1975) This Proposal is designed to impose export duties on coal exported from Australia. They were foreshadowed by my colleague the Honourable the Treasurer **(Mr Hayden)** earlier this evening. As the Treasurer mentioned, the price of coal in world markets has risen dramatically over the last 2 years in the wake of the very sharp rise in oil prices. In many cases the price is now 3 times as great as it was before the oil price increases. The Minister for Minerals and Energy **(Mr Connor)** has returned only recently from Japan where he discussed acceptable levels of export prices, in the case of hard coking coals, of the order of $37 per tonne. Coal exporters are as a result earning very large windfall profits. The Government believes that it is only reasonable that some part of these windfall profits should be re-channelled for the benefit of the community. The duties proposed will achieve that result. Coal varies in quality and the variation is reflected in the prices which are received by exporters. The higher quality coking coals have experienced greater increases than have some of the other classes of coals. It is therefore proposed that the various coals will be classified according to their quality and duty will be levied appropriately. The higher quality coals will bear a duty of $6 per tonne. Other coals, including steaming coals, will bear a duty of $2 per tonne. The Government is concerned that those overseas buyers who have agreed to pay higher prices for our coals should be protected in respect of those prices. In other words, the Government does not wish the duty to be passed on to those buyers. It is therefore proposed that, in order to protect buyers in respect of prices recently renegotiated, approval to export will be in terms of those renegotiated prices as appropriately adjusted by escalation provisions but not including the new duty. I commend the Proposals. Debate (on motion by **Mr Adermann)** adjourned. {: .page-start } page 220 {:#debate-81} ### PRIVY COUNCIL APPEALS ABOLITION BILL 1975 [No. 2] {:#subdebate-81-0} #### Second Reading Debate resumed. {: #subdebate-81-0-s0 .speaker-8H7} ##### Mr ENDERBY:
CanberraAttorneyGeneral · ALP -- The Government has great difficulty appreciating the reasons that the Opposition opposes this measure. One would have thought that in this day and age, in 1975, Australians of whatever shade of political hue or feeling would have agreed on one thing at least, namely, that Australia is a nation which today recognises, as far as its legal system is concerned, that the High Court is and should be the ultimate court of appeal from all Australian courts, whether those courts be part of the Federal system or whether they be part of the State systems. Yet, as is so often the case, the Opposition once again says that it will oppose the Bill, this time not because it claims that the measure itself is bad- no one could be heard to say that- but because somehow or other it finds offensive or objectionable the method chosen to achieve the end. One has to analyse the Opposition's motives. As so often happens when one listens to the speeches of Opposition members, one is forced to look around behind the words they choose to use to the purpose they seek to achieve. I listened with great interest to the right honourable member for Bruce **(Mr Snedden),** who said that he would support a referendum proposal. Well, he might as an individual support such a proposal, but we all know the results of attempts made in this country to change the Constitution be referenda. This Labor Government more than any other government has tried to change the Australian Constitution by referenda, but it requires only one determined group of people, hiding behind the words with which they choose to cloak their real thoughts, to oppose a referendum for the community as a whole to oppose it. It seems that the Australian experience is that Australians vote no. In this situation the Australian Government is using the legal means available to it. There are different points of view, it is true, on whether a challenge would succeed in the High Court were it ever to be mounted. But there are views both ways. The Australian Government takes the view that it wants to go to the limit of constitutional power because it has to change the absurd situation whereby an appellant in a State system of courts- in the New South Wales Supreme Court or the Victorian Supreme Court or the South Australian Supreme Court or the Western Australian Supreme Court or the Tasmanian Supreme Court or the Queensland Supreme Court- can bypass the High Court and go to the Privy Council, thus setting up 2 different competing lines of authority. No dignified Australian in this day and age can tolerate such a situation. Australians belong to one nation, one nation alone. Yet the Australian Government, in trying to give effect to its policies, to see the High Court of Australia as the single and only ultimate court of appeal, once again is met with arguments from the Opposition to the effect that it does not really oppose the Bill but there must be some other way in which the Government should try to do this. It is the Opposition's credit that is at issue, the credit of the Opposition when once again it says: 'We know that what you are trying to do is the right thing. We do not really want to oppose you, but we are going to oppose you.' Then the Opposition searches, sometimes with incredible ingenuity, to find an additional reason why the measure that it recognises as being sound has to be opposed. So we see yet another example of this attitude coming from the Opposition. I am reminded of the peculiar situation that exists in Australia with its successively rigid Constitution. I have had occasion in recent times to make a number of speeches on this issue. One was a speech I gave in Perth, Western Australia, a little while ago, titled 'Barriers to ReformPolitics of Opposition'. I tried to deal with the opportunities that are given to an Opposition that controls the Senate to thwart, frustrate and delay the proposals that are put forward by a popularly elected government. One can think of examples other than the Privy Council (Abolition of Appeals) Bill that we are discussing tonight. One thinks of the legislation that relates to the Petroleum and Minerals Authority and the electoral reforms that we have tried to put through. One could go on. I think there are some 30 Bills which have been rejected by the Senate since the double dissolution in May of last year. Those Bills are resting in the bank, so to speak, and testify to the unreasoning opposition of the Opposition in the Senate in particular where the Opposition has the numbers. An Opposition that lost an election is able in the Senate to stop a Government that won an election from carrying out its policies. Surely there is no greater example to be found of this ability than in respect of this legislation. The Opposition says: 'Look, we know that the measure is good, but we are going to block it anyway'. The Opposition comes along and says in this respect: 'We disapprove of this particular legal method'- no one argues that is an illegal method- 'of achieving your end'. The Opposition claims that in some way it is undignified for Australia to take this one additional step towards nationhood in this way, when such action is the only legal way open to the Government. We heard the right honourable member for Bruce **(Mr Snedden)** say: 'Do not use this legal method that is open to you. Use another one', when he knows full well that the whole experience of Australia since Federation is that the method that he puts forward as the one that we should try is doomed to failure. I will not take up the time of honourable members very much longer on this matter. We know the attitude of the Opposition. We know that the Opposition has declared itself on this legislation. This is one further example of the attitude of the Opposition when its members rise in this place to say that it is right and proper- that is the effect of their words if not the meaning of their wordsthat Australians should not use their own High Court but in six different ways from six different parts- called States- of Australia should be able to appeal to a supreme judicial body in another country that increasingly is a foreign country to Australia notwithstanding its very close historic ties with Australia. The Privy Council of the United Kingdom and of the Commonwealth should rule on appeals from New South Wales, Victoria and Tasmania, often perhaps in different ways, when that body and the United Kingdom are obsessed with their own concerns. That is what the Opposition says. The Privy Council is not familiar really with Australian law. Australian law is going its own way. It has been going that way for many, many years now. The United Kingdom has been going ever increasingly into Europe as its entry into the European Economic Community and similar developments of that sort prove. Yet here in 1975 the Opposition- the Liberal Party and the National Country Party- is able to say that a situation should exist by which the Privy Council located in England should rule on what is the law in, say, New South Wales, or what is the correct legal solution to a problem between 2 Australian citizens living in Hobart or Perth, merely because the Australian Government, according to one view, does not have the constitutional power to say what the Canadian Government said back in about 1933. They would have this absurd and very dangerous situation continue whereby we cannot give ourselves the symbols and dignity of nationhood. This is an absurd situation in 1975, **Mr Deputy Speaker.** This attitude does not do the Opposition any credit at all. It brings discredit on the Opposition. I can only hope that people listening to the broadcast of these proceedings from the Australian Parliament, immediately after the presentation of the Budget, will realise what is happening in the House of Representatives tonight after the presentation of that Budget and not related to it at aU. The proposal to abolish appeals from the State supreme courts to the Privy Council in London is being opposed by the Opposition. No matter what the members of the Opposition say, the effect of their actions is to oppose the proposal. The Opposition says: 'Of course we cannot say that it is not a desirable measure, but you must find a better way to do it'. But the only way the Opposition can suggest is a referendum when it knows that invariably when this Government puts forward referendum proposals the Opposition opposes them and its very opposition frustrates the attempts to change the Australian Constitution. Many people in Australia increasingly, I hope, are becoming aware of the rigidity of the Australian Constitution and its complete and total inadequacy to meet the needs of Australians in 1975. Yet here and now we see another example of Liberal-Country Party people saying: 'There must be some way that you can do it'. They know full well that the way that they put forward will not succeed. They know that the Statute of Westminster exists. They know that the provisions contained in it have often been commented upon. They know that it is a legal way. For some reason or other they simply say: 'Do not use it. Use the referendum procedures', when we know that they will oppose those measures at another time. So Australia must limp along. Australia is one of the few countries in the world whose people must appeal not to its own courts but to somebody else's court in another part of the world. It may not be irrelevant if I mention tonight that there was a report, which is probably true, although not officially confirmed- I think that should not prevent me from using it- of the Bartons having succeeded in their case in Paraguay. The reason they succeeded is not unrelated to the matter about which I am talking because a United Kingdom treaty of 1908 may have been held to be not applicable to Australia in 1975. How absurd! The Whitlam Labor Government tries to make changes, tries to develop treaty relationships and tries to develop the legal apparatus appropriate for an independent nation- not for 8 different nations; not for New South Wales as a nation and Victoria as a nation, each as different from the other as France is different from the Soviet Union, as the members of the Opposition would sometimes like them to be. We do not wish that the Australian Capital Territory should be as different from the Northern Territory as Spain is from Portugal. But when we try to develop a single coherent set of courts with a single appellate system and we use the only practical and legal means available to us, the Opposition opposes us. The Opposition does not challenge the legality of those means but chooses to find some strange and political form of words to seek to use its numbers in the Senate to block the measure. In 1975, 1976, 1977 and 1978, and for all we know in the year 2000 if the Opposition has its way and continues to control the Senate, Australians will still be required to appeal from the Supreme Court of, say, Western Australia not to our own High Court but to the Privy Council in England. One despairs of continuing to have patience with the Opposition when it persists with this nonsense. {: #subdebate-81-0-s1 .speaker-ZD4} ##### Mr HOWARD:
Bennelong -- I am extremely sorry that the Attorney-General **(Mr Enderby)** adopted the line of argument that he did because I do not think it reflected any credit on him or upon this debate. It seems very strange to me and, I am sure, to all members of the Opposition that a government that is so intent on breaking what the Attorney-General's predecessor described as 'those vestigial legal links between Australia and the United Kingdom' should resort to one of the most vestigial of all those links to bring about the purposes contained in this Bill. I am referring to the Statute of Westminster. During his remarks the Attorney-General, who became more heated about the subject as he went along, called in question the Opposition's credit. He said that we are not really genuine in saying that we want to abolish appeals from the courts in Australia to the Privy Council. Honourable members will know that at the time this Bill was introduced there was a companion Bill to abolish the final right of appeal from the High Court of Australia to the Privy Council. Was the Opposition seen to be opposing.that Bill? It was not. The Attorney-General knows that; the Government knows that. We supported that Bill and our support was consistent with our attitude that the final court of appeal should be the High Court of Australia. We supported that Bill because the correct course of action was being followed. On that occasion we were not being asked to embark upon the embarrassing exercise of reviving a 1 93 1 statute. It never ceases to amaze me that the leader of this.Government, who is so intent upon breaking what he calls the vestigial links that in government offices throughout Australia he hangs his own portrait in place of the portrait of the sovereign of this country, is prepared when it comes to his own political purposes to use a 1 93 1 statute of the Imperial Parliament- a statute which by its very description, by the history which led up to it and by the history which followed it - {: .speaker-8H7} ##### Mr Enderby: -- I rise to a point of order, **Mr Deputy Speaker.** Surely it is inappropriate for my good friend to speak in such, terms of imperial statutes. Our own Constitution is an imperial statute. {: .speaker-ZD4} ##### Mr Howard: -- Speaking to the point of order, **Mr Deputy Speaker** - **Mr DEPUTY SPEAKER (Mr Luchetti)Order!** The honourable member for Bennelong may proceed, but I ask him to respect the terms of the Bill before the House. {: .speaker-ZD4} ##### Mr HOWARD: -- With respect, **Mr Deputy Speaker,** it is impossible to talk intelligently about this Bill without referring to the Statute of Westminster because that is the very legal device that the Government is using to abolish appeals from Australian courts to the Privy Council. {: #subdebate-81-0-s2 .speaker-10000} ##### Mr DEPUTY SPEAKER: -- The honourable member for Bennelong may proceed. {: .speaker-ZD4} ##### Mr HOWARD: -I think, with respect, that the Attorney-General's point of order was not a legitimate one. I share the view expressed by the right honourable member for Bruce **(Mr Snedden),** that is, that the High Court of Australia should be the final court of appeal. A process was initiated in 1968 by one of the AttorneyGeneral's predecessors- the Honourable Nigel Bowen- to limit appeals from the High Court to the Privy Council. I certainly share the view and I believe that most members of the Opposition share the view that that process ought to be completed. But it ought to be completed in a manner which is consistent with the independence and the dignity of Australia in 1975. We are constantly being harangued that we are the people who are hanging on to unnecessary colonial links. I return again to the Statute of Westminster. How colonial can you possibly get to resort to a statute the very purpose of which was to emphasise the legal independence of the then dominion countries of the British Commonwealth? The purpose of the Statute of Westminster was to make it clear beyond all doubt that the laws of the United Kingdom Parliament would not apply to the dominions of the British Commonwealth unless the Parliaments of those countries expressly requested that those laws so apply and consented to their applying. It was clearly believed at the time that no self respecting dominion would resort to the device to which the present Government has resorted in 1975. The present Government is intent on breaking these vestigial links but, surprisingly enough, it has resorted to this very colonial, vestigial and dependent device. The Attorney-General spent a great deal of time talking about the futility of his Government putting forward referenda proposals. I was very intrigued to hear that, because bis Leader, only a few months ago in the dying hours of the autumn session of this House, reintroduced a Bill providing for a referendum for simultaneous elections. Apparently the Prime Minister **(Mr Whitlam)** does not believe that it is futile to put referenda proposals to the Australian people, although I believe that certain branches of the Australian Labor Party's organisation throughout Australia believe that it is futile to do so because the Prime Minister was criticised for doing so at the time of the last double dissolution campaign. The AttorneyGeneral knows very well that a referendum proposal could be put to the Australian people to deal with this subject. It is to completely confuse the debate and to mislead the House to say that that option is not open. The Attorney-General knows that the self-respecting option open to the Government in this issue is to have a referendum. The Australian Constitution provides that that document can be changed by referendum of the people. On this occasion the AttorneyGeneral's Government is in effect saying: 'The Constitution is not adequate; we will bypass it and revive an ancient device'. I think it reflects no credit on either the political or historical approach of the Government to these matters. I am very sorry that the Attorney-General finds our constitutional setup so rigid and so frustrating. I venture to suggest that a great number of people throughout Australia have been extremely grateful over the past 2'/2 years that we have had the Constitution Act of 1 90 1 because if we had not we aU know very well that the legal balance which still exists between the Federal Government and the State governments in our Federation would have been greatly disturbed. Of course the Constitution needs updating. Of course one could always improve on the basic document of our Federation. For the AttorneyGeneral to manifest so very clearly during the course of this debate his frustration and annoyance with the rigidity of the Constitution is, I think, very revealing. The Attorney-General is convinced that all referendum proposals presented by this Government are doomed to failure. I suggest that if the Government chooses to put forward a sensible referendum proposal, one which is not designed solely to accrue more and more power to the Federal Government, it might have a Utile more chance of success. So I emphasise again that the Opposition is in no way opposed to a situation in which the High Court of Australia rightly becomes the final court of appeal on all matters arising in the Commonwealth of Australia. We made this point very clear in the debate on the Bill dealing with the abolition of appeals from the High Court to the Privy Council. Our credibility is not in doubt. It is the credibility of the Government on this matter which is in doubt. The use of the device which the Government seeks to use in this legislation is to remind the Australian people of a dependent status, not to remove it. It is to remind the Aus.tralian people that unnecessary colonial links still exist between Australia and the United Kingdom; it is not to remove it. We support the objective of this legislation. I support it very strongly. I have long believed that all appeals to the Privy Council should be eliminated. We deplore the device which has been used by the Government on this occasion. We believe that it could prejudice relations between this country and the United Kingdom. I believe that the points which the right honourable member for Bruce made during his remarks were most relevant. Why should we involve the United Kingdom Parliament in a domestic Australian dispute? In effect, that is what we run the risk of doing. For the first time since the Statute of Westminster was passed in 1931 we run the risk of involving the United Kingdom Parliament in a domestic Australian legal matter. How dependent, vestigial and colonial could one possibly get? Yet that is the device on which this progressive independent Government of Australia of 1975 relies. Instead of recognising the self-respect of Australia as an independent country, it resorts to this ancient and colonial device. I repeat that the Opposition supports the principle of the abolition of appeals to the Privy Council. It deplores the device which has been used by the Government on this occasion. It rejects any suggestions that its credibility is in doubt. It is not in doubt. The Opposition facilitated the passage of the companion Bill which completed a process which was commenced by a Liberal Attorney-General in 1968. The Opposition will again oppose the Bill. {: #subdebate-81-0-s3 .speaker-YF6} ##### Mr ELLICOTT:
Wentworth -My reason for rising in this debate is somewhat unusual. I have risen not to speak on the measure but to explain that I shall abstain from voting on this Bill if a division takes place. I want simply to explain to the House my reason for doing so. As the Prime Minister (Mr.Whitlam) said in his second reading speech, this measure has been introduced for the third time in 2 years, and 2 years ago I was the Solicitor-General. This measure was settled by me as Solicitor-General and I took part in negotiations with the British Government in relation to it. In the circumstances I think it is proper that I should abstain from voting on the measure. I say that to explain my reasons to both sides of the House. Question resolved in the affirmative. Bill read a second time. {:#subdebate-81-1} #### Third Reading Leave granted for third reading to be moved forthwith. Bill (on motion by **Mr Enderby)** read a third time. House adjourned at 9.52 p.m. {: .page-start } page 225 {:#debate-82} ### ANSWERS TO QUESTIONS UPON NOTICE The following answers to questions upon notice {:#subdebate-82-0} #### Department of Special Minister of State: Grants for Programs (Question No. 2037) {: #subdebate-82-0-s0 .speaker-DQF} ##### Mr Snedden: asked the Minister representing the Special Minister of State, upon notice: {: type="1" start="1"} 0. 1 ) When will the Minister answer my Question No. 1 559 which first appeared on the Notice Paper on 13 November 1974. {: #subdebate-82-0-s1 .speaker-ZE4} ##### Mr Lionel Bowen:
ALP -- The Special Minister of State has provided me with the following answer to the right honourable member's question : (1)1 refer him to my predecessor's answer to Question No. 1559 on page 2747 of Hansard 22 May 1975. {:#subdebate-82-1} #### National Archives (Question No. 2038) {: #subdebate-82-1-s0 .speaker-DQF} ##### Mr Snedden: asked the Minister representing the Special Minister of State, upon notice: {: type="1" start="1"} 0. 1 ) When will the Minister answer my question No. 1 723 which first appeared on the Notice Paper on 13 November 1974. {: #subdebate-82-1-s1 .speaker-ZE4} ##### Mr Lionel Bowen:
ALP -- The Special Minister of State has provided me with the following answer to the right honourable member's question: {: type="1" start="1"} 0. I refer him to my predecessor's answer to Question No. 1723 on page 1563 of Hansard for 10 April 1975. {:#subdebate-82-2} #### Population Statistics (Question No. 2039) {: #subdebate-82-2-s0 .speaker-DQF} ##### Mr Snedden: asked the Minister representing the Special Minister of State, upon notice: {: type="1" start="1"} 0. 1 ) When will the Minister answer my question No. 1724 which first appeared on the Notice Paper on 13 November, 1974. {: #subdebate-82-2-s1 .speaker-ZE4} ##### Mr Lionel Bowen:
ALP -- The Special Minister of State has provided me with the following answer to the right honourable member's question: {: type="1" start="1"} 0. I refer him to my predecessor's answer to Question No. 1724 on page 705 of Hansard for 25 February 1975. {:#subdebate-82-3} #### Archives (Question No. 2040) {: #subdebate-82-3-s0 .speaker-DQF} ##### Mr Snedden: asked the Minister representing the Special Minister of State, upon notice: {: type="1" start="1"} 0. When will the Minister answer my question No. 1728 which first appeared on the Notice Paper on 13 November, 1974. {: #subdebate-82-3-s1 .speaker-ZE4} ##### Mr Lionel Bowen:
ALP -- The Special Minister of State has provided me with the following answer to the right honourable member's question. {: type="1" start="1"} 0. I refer him to my predecessor's answer to Question No. 1728 on page 1563 of Hansard for 10 April 1975. were circulated: {:#subdebate-82-4} #### Darwin: Aborigines (Question No. 2214) {: #subdebate-82-4-s0 .speaker-SH4} ##### Dr Klugman:
PROSPECT, NEW SOUTH WALES asked the Minister for Northern Australia, upon notice: {: type="1" start="1"} 0. Before the partial evacuation of Darwin after Christmas 1974, what was the total number of residents in the Northern Territory. 1. What proportion of this number were Aborigines. 2. What was the total number of police in the N.T., and what proportion of them were Aborigines. {: #subdebate-82-4-s1 .speaker-KXV} ##### Dr Patterson:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. The Bureau of Census and Statistics advises the estimated population of the Northern Territory immediately prior to the partial evacuation of Darwin after Christmas 1974 was 105 000. 1. The Bureau estimates the proportion of this number that were Aborigines was 25 per cent. 2. The total number of police in the Northern Territory on 24 December 1974 was 389 none of whom were Aborigines. However, since that date seven Aborigines have been employed and trained as police liaison assistants, and they commenced duty at four of the major population centres, on 3 March 1975. {:#subdebate-82-5} #### Tertiary Institutions: Undergraduates (Question No. 2228) {: #subdebate-82-5-s0 .speaker-3V4} ##### Mr Chipp:
HOTHAM, VICTORIA asked the Minister for Education, upon notice: {: type="1" start="1"} 0. What sums were allocated in Victoria for undergraduate education in respect of (a) social workers, ( b) occupational therapists, (c) speech therapists and (d) physiotherapists during each of the years 1971, 1972, 1973, 1974, 1975 and 1976. 1. Is any expansion planned in the number of undergraduate places for (a) social workers, (b) occupational therapists, (c) speech therapists and (d) physiotherapists. {: #subdebate-82-5-s1 .speaker-JF7} ##### Mr Beazley:
ALP -- The answer to the honourable member's question is as follows: >It is to be noted that of the categories listed under both sections (1) and (2) of the question, Victorian universities provide undergraduate education only for social workers. > >1 ) General recurrent grants to universities and colleges of advanced education are not specifically allocated by the tertiary commissions to individual courses and detailed expenditures by course are not therefore available. Because of the sharing of facilities, capital expenditure likewise is not available in such detailed dissections. > >However to increase further facilities for the training of social workers and social work planners beyond the level already provided in the 1973/75 triennial program of universities and colleges of advanced education, special supplementary grants have been allocated to colleges of advanced education in Victoria as follows; 1973 $95,000; 1974 $160,000; 1975 $185,000. > >As part of the same special program the University of Melbourne was allocated an additional $240,000 and Monash University $75,000. The grant to Monash University was later withdrawn following advice from the Vice-Chancellor of the University that it would not be possible to accelerate the introduction of the new course as proposed. > >A moderate growth is planned for these courses in Victorian colleges of advanced education during the 1976-78 triennium. > >La Trobe University proposes to introduce a course in social work beginning in 1 976. > >For further information on the matter, I would refer the honourable member to my answer to Parliamentary Question 2229. Publication 'Secrecy- Political Censorship in Australia' (Question No. 2265) {: #subdebate-82-5-s2 .speaker-0J4} ##### Mr Ruddock: asked the Minister for Aboriginal Affairs, upon notice: {: type="1" start="1"} 0. With reference to the Prime Minister's answer to my question No. 1779 (Hansard, 5 December 1974, page 4763), has his attention been drawn to the book of **Mr J.** J. Spigelman entitled *Secrecy- Political Censorship in Australia* and, in particular, *An Inside Dopester's Index of 1 00 Examples of Secrecy,* on pages 1 77- 1 80. 1. Has his attention also been drawn to indexed item 23- Independent consultant's report on Social Indicators and Social Accounts. 2. 3 ) In respect of that item, has it been made publicly available since 1972; if so, when, and in what manner, and by whom was the disclosure made. 3. If the item has not been made publicly available, what is the reason for the continuing secrecy. {: #subdebate-82-5-s3 .speaker-K9M} ##### Mr Les Johnson:
HUGHES, NEW SOUTH WALES · ALP -- The following is the answer to the honourable member's question: {: type="1" start="1"} 0. Yes. 1. Yes. 2. Yes. This report was prepared by the management consultant firm W. D. Scott & Co. for the Office of Aboriginal Affairs and is available for reading by any interested person in the library of the Department of Aboriginal Affairs. It has been available ever since this Government took office in 1972. Publication 'Secrecy- Political Censorship in Australia' (Question No. 2319) {: #subdebate-82-5-s4 .speaker-0J4} ##### Mr Ruddock: asked the Minister for Transport, upon notice: {: type="1" start="1"} 0. With reference to the Prime Minister's answer to my question No. 1779 (Hansard, 5 December 1974, page 4763), has his attention been drawn to the book of **Mr J.** J. Spigelman entitled *Secrecy, Political Censorship in Australia* and, in particular, *An Inside Dopester's Index of 100 Examples of Secrecy,* on pages 1 77 to 1 80. 1. Has his attention also been drawn to indexed item 76- Financial data on Ansett's airline operation. 2. In respect of that item, has it been made publicly available since 1972; if so, when, and in what manner, and by whom was the disclosure made. 3. If the item has not been made publicly available, what is the reason for the continuing secrecy. {: #subdebate-82-5-s5 .speaker-KDV} ##### Mr Charles Jones:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. 1 ) Yes, and I refer you to the general comments made recently by the Prime Minister on your series of questions. 1. Yes. 2. and (4) Yes.. Under the provisions of the Third Schedule of the Airlines Agreements Act 1972, Ansett Transport Industries Ltd is obliged, after the end of each financial year, to furnish to me for presentation to the Parliament, full financial information in respect of that part of its business and that of its subsidiary companies as relates to the operation of air services. Accordingly, since the date when this requirement came into force, I have tabled before Parliament the annual accounts of Ansett Airlines of Australia on two occasions, first in respect of the financial year ended 30 June 1973,. and then more recently, in respect of the year ended 30 June 1974. Publication 'Secrecy- Political Censorship in Australia' (Question No. 2324) {: #subdebate-82-5-s6 .speaker-0J4} ##### Mr Ruddock: asked the Attorney-General, upon notice: {: type="1" start="1"} 0. 1) With reference to the Prime Minister's answer to my question No. 1779 (Hansard,5 December 1974, page 4763), has his attention been drawn to the book of **Mr J.** J. Spigelman entitled *Secrecy- Political Censorship in Australia* and, in particular, *An Inside Dopester's Index of 100 Examples of Secrecy,* on pages 177 to 180. 1. Has his attention also been drawn to indexed item 79- Attorney-General's Department, reports on abortion and homosexuality. 2. 3 ) In respect of that item, has it been made publicly available since 1972; if so when, and in what manner, and by whom was the disclosure made. 3. If the item has not been made publicly available, what is the reason for the continuing secrecy. {: #subdebate-82-5-s7 .speaker-8H7} ##### Mr Enderby:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. and (2) Yes. 1. and (4) I refer the honourable member to the comments made by the Prime Minister in his reply to Question No. 2243, (Hansard, 13 May 1975, page 2198). Publication 'Secrecy- Political Censorship in Australia' (Question No. 2327) {: #subdebate-82-5-s8 .speaker-0J4} ##### Mr Ruddock: asked the Minister for Environment, upon notice: {: type="1" start="1"} 0. With reference to the Prime Minister's answer to my question No. 1779 (Hansard, 5 December 1974, page 4763), has his attention been drawn to the book of **Mr J.** J. Spigelman entitled *Secrecy- Political Censorship in Australia,* and, in particular, *An Inside Dopester's Index of 100 Examples of Secrecy,* on pages 177 to 180. 1. Has his attention also been drawn to indexed item 6- Proceedings of the River Murray Commission and the Water Resources Council. 2. In respect of that item, has it been made publicly available since 1972; if so, when, and in what manner, and by whom was the disclosure made. 3. If the item has not been made publicly available, what is the reason for the continuing secrecy. {: #subdebate-82-5-s9 .speaker-JP8} ##### Mr Berinson:
Minister for Environment · PERTH, WESTERN AUSTRALIA · ALP -The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. and (2) Yes. 1. and (4) In regard to proceedings of the River Murray Commission I refer the honourable member to parts (3) and (4) of my reply to question No. 2329. In regard to proceedings of the Australian Water Resources Council the transcript of the minutes of the fifteenth meeting of the Australian Water Resources Council held on 27 July 1973 were tabled in the House of Representatives and Senate on 1 1 October 1973 and the minutes of the sixteenth meeting of the Australian Water Resources Council convened on 30 August 1974 were tabled in the House of Representatives and the Senate on 2 June 1975. Publication 'Secrecy- Political Censorship in Australia' (Question No. 2328) {: #subdebate-82-5-s10 .speaker-0J4} ##### Mr Ruddock: asked the Minister for Environment, upon notice: {: type="1" start="1"} 0. With reference to the Prime Minister's answer to my question No. 1779 (Hansard, 5 December 1974, page 4763), has his attention been drawn to the book of **Mr J.** J. Spigelman entitled *Secrecy- Political Censorship in Australia,* and, in particular, *An Inside Dopester's Index of 100 Examples of Secrecy,* on pages 177 to 180. 1. Has his attention also been drawn to indexed item 7, Feasibility study of hydro-electric plant for Dartmouth Dam. 2. In respect of that item, has it been made publicly available since 1972; if so, when, and in what manner, and by whom was the disclosure made. 3. If the item has not been made publicly available, what is the reason for the continuing secrecy. {: #subdebate-82-5-s11 .speaker-JP8} ##### Mr Berinson:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. and (2) Yes. 1. and (4) I refer the honourable member to parts (3) and (4) of my reply to question No. 2329. Publication: 'Secrecy- Political Censorship in Australia' (Question No. 2329) {: #subdebate-82-5-s12 .speaker-0J4} ##### Mr Ruddock: asked the Minister for Environment, upon notice: {: type="1" start="1"} 0. With reference to the Prime Minister's answer to my question No. 1779 (Hansard, 5 December 1974, page 4763), has his attention been drawn to the book of **Mr J.** J. Spigelman entitled Secrecy- Political Censorship in Australia, and, in particular, An Inside Dopester's Index of 100 Examples of Secrecy, on pages 1 77 to 1 80. 1. Has his attention also been drawn to indexed item 8- Technical report on River Murray improvement works. 2. 3 ) In respect of that item, has it been made publicly available since 1972; if so, when, and in what manner, and by whom was the disclosure made. 3. If the item has not been made publicly available, what is the reason for the continuing secrecy. {: #subdebate-82-5-s13 .speaker-JP8} ##### Mr Berinson:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. and (2) Yes. 1. The Proceedings of the River Murray Commission are documents of the Commission and it is for the Commissioners to determine whether the report should be made public. The River Murray Commission consists of four Commissioners, one appointed by the Governor-General and one each by the Governors of New South Wales, Victoria and South Australia; it is not an agency of the Australian Government. 2. Refer to answer (3) above. Publication: 'Secrecy- Political Censorship in Australia' (Question No. 2330) {: #subdebate-82-5-s14 .speaker-0J4} ##### Mr Ruddock: asked the Minister for Environment, upon notice: {: type="1" start="1"} 0. With reference to the Prime Minister's answer to my question No. 1779 (Hansard, 5 December 1974, page 4763), has his attention been drawn to the book of **Mr. J.** J. Spigelman entitled Secrecy- Political Censorship in Australia, and, in particular, an Inside Dopester's Index of 100 Examples of Secrecy on pages 177 to 180. 1. Has his attention also been drawn to indexed item 9- Cost-benefit analyses of Commonwealth-financed dam and irrigation projects. 2. ) In respect of that item, has it been made publicly available since 1972; if so, when and in what manner, and by whom was the disclosure made. 3. If the item has not been made publicly available, what is the reason for the continuing secrecy. {: #subdebate-82-5-s15 .speaker-JP8} ##### Mr Berinson:
ALP -The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. and (2) Yes. 1. 1 refer the honourable member to part (3 ) of the Prime Minister's reply to question No. 2243 (Hansard No. 59, 8 April 1975). I would add, however, that this Government has considered the allocation of Federal financing assistance for the implementation of several rural dam and irrigation projects. In each case a report containing a benefit-cost analysis was published. The reports are: 'Lock-Kimba Pipeline Proposal, South Australia' Bureau of Agricultural Economics, 1973. 'Eton Irrigation Proposal, Queensland ' Bureau of Agricultural Economics, 1973. 'Reappraisal of Lower Dawson Weirs Project' Department of Northern Development, 1973. 'An Evaluation of the Dartmouth Project' Department of Environment and Conservation, April 1974. In addition a report of a benefit-cost study of the Bundaberg Irrigation Proposal, Queensland, 1975 has been published by the Bureau of Agricultural Economics. {: type="1" start="4"} 0. Refer to answer (3) above. Publication 'Secrecy- Political Censorship in Australia' (Question No. 2332) {: #subdebate-82-5-s16 .speaker-0J4} ##### Mr Ruddock: asked the Minister for Aboriginal Affairs, upon notice: {: type="1" start="1"} 0. With reference to the Prime Minister's answer to my question No. 1779 (Hansard, 5 December 1974, page 4763), has his attention been drawn to the book of **Mr J.** J. Spigelman entitled *Secrecy- Political Censorship in Australia* and, in particular, *An Inside Dopester's Index of 100 Examples of Secrecy,* on pages 177 to 180. 1. Has his attention also been drawn to indexed item 20- Office of Aboriginal Affairs proposals on Aboriginal land rights. 2. In respect of that item, has it been made publicly available since 1972; if so, when, and in what manner, and by whom was the disclosure made. 3. If the item has not been made publicly available, what is the reason for the continuing secrecy. {: #subdebate-82-5-s17 .speaker-K9M} ##### Mr Les Johnson:
HUGHES, NEW SOUTH WALES · ALP -- The following is the answer to the honourable member's question: {: type="1" start="1"} 0. and (2) Yes. 1. No. 2. I refer the honourable member to part (3) of the answer given by the Prime Minister to Question No. 2243 on 13 May 1975 (Hansard, page 2 198). Publication 'Secrecy- Political Censorship in Australia' (Question No. 2333) {: #subdebate-82-5-s18 .speaker-0J4} ##### Mr Ruddock: asked the Minister for Aboriginal Affairs, upon notice: {: type="1" start="1"} 0. 1 ) With reference to the Prime Minister's answer to my question No. 1779 (Hansard, 5 December 1974, page 4763), has his attention been drawn to the book of **Mr J.** J. Spigelman entitled *Secrecy-Political Censorship in Australia* and, in particular, *An Inside Dopester's Index of 100 Examples of Secrecy,* pages 1 77 to 1 80. 1. ) Has his attention also been drawn to indexed item 21- Report on a Reconnaissance of Means for Aboriginal Advancement on the South Coast of N.S.W.- June 1 969. 2. ) In respect of that item, has it been made publicly available since 1972; if so, when, and in what manner, and by whom was the disclosure made. 3. If the item has not been made publicly available, what is the reason for the continuing secrecy. {: #subdebate-82-5-s19 .speaker-K9M} ##### Mr Les Johnson:
HUGHES, NEW SOUTH WALES · ALP -- The following is the answer to the honourable member's question: {: type="1" start="1"} 0. Yes. 1. Yes. 2. Yes. This report was prepared by the management consultant firm W. D. Scott & Co. for the Office of Aboriginal Affairs and is available for reading by any interested person in the library of the Department of Aboriginal Affairs. It has been available ever since this Government took office in 1972. Publication 'Secrecy- Political Censorship in Australia' (Question No. 2334) {: #subdebate-82-5-s20 .speaker-0J4} ##### Mr Ruddock: asked the Minister for Aboriginal Affairs, upon notice: {: type="1" start="1"} 0. With reference to the Prime Minister's answer to my question No. 1779 (Hansard, 5 December 1974, page 4763), has his attention been drawn to the book of **Mr J.** J. Spigelman entitled *Secrecy- Political Censorship in Australia* and, in particular, *An Inside Dopester's Index of 100 Examples of Secrecy,* on pages 1 77 to 1 80. 1. Has his attention also been drawn to indexed item 22- Assessment of the Needs and Opportunities for the Aborigines of the Kimberleys- October 197 1. 2. 3) In respect of that item, has it been made publicly available since 1972; if so, when, and in what manner, and by whom was the disclosure made. 3. If the item has not been made publicly available, what is the reason for the continuing secrecy- {: #subdebate-82-5-s21 .speaker-K9M} ##### Mr Les Johnson:
HUGHES, NEW SOUTH WALES · ALP -- The following is the answer to the honourable member's question: {: type="1" start="1"} 0. Yes. 1. Yes. 2. Yes. This report was prepared by the management consultant firm W. D. Scott & Co. for the Office of Aboriginal Affairs and is available for reading by any interested person in the library of the Department of Aboriginal Affairs. It has been available ever since this Government took office in 1972. Publication 'Secrecy -Political Censorship in Australia (Question No. 2337) {: #subdebate-82-5-s22 .speaker-0J4} ##### Mr Ruddock: asked the Minister for Aboriginal Affairs, upon notice: {: type="1" start="1"} 0. With reference to the Prime Minister's answer to my question No. 1779 (Hansard, 5 December 1974, page 4763), has his attention been drawn to the book of **Mr J.** J. Spigelman entitled *Secrecy- Political Censorship in Australia* and, in particular, *An Inside Dopester's Index of 100 Examples of Secrecy,* on pages 177 to 180. 1. Has his attention also been drawn to indexed item 26- Office of Aboriginal Affairs report on discriminatory legislation. 2. In respect of that item, has it been made publicly available since 1972; if so, when, and in what manner, and by whom was the disclosure made. 3. If the item has not been made publicly available, what is the reason for the continuing secrecy. {: #subdebate-82-5-s23 .speaker-K9M} ##### Mr Les Johnson:
HUGHES, NEW SOUTH WALES · ALP -- The following is the answer to the honourable member's question: {: type="1" start="1"} 0. and (2) Yes. 1. No. 2. I refer the honourable member to part (3) of the answer given by the Prime Minister to Question No. 2243 on 13 May 1975(Hansardpage2198). {:#subdebate-82-6} #### Specific Learning Difficulties (Question No. 2355) {: #subdebate-82-6-s0 .speaker-DQF} ##### Mr Snedden: asked the Minister for Education, upon notice: {: type="1" start="1"} 0. Further to question No. 409 concerning studies into specific learning difficulties, will he provide a list of all studies being supported by the Australian Advisory Committee on Research and Development in Education which are concerned with methods of early identification of children with specific learning difficulties. 1. What sums are paid to the States to enable them to employ people to engage directly in the actual identification of children with specific learning difficulties. {: #subdebate-82-6-s1 .speaker-JF7} ##### Mr Beazley:
ALP -- The answer to the right honourable member's question is as follows: {: type="1" start="1"} 0. The following projects, which have received financial support through the Australian Advisory Committee on Research and Development in Education are, in varying degrees, concerned with problems of identification of specific learning difficulties. Importantly, the projects are not concerned solely with methods of identification, in each case due emphasis has been given to the study of possible remedial treatment programs: **Mr R.** C. G. Lea, Education Department, Victoria- 'Longitudinal reading study 1970-1974'. **Mr J.** P. LeMaistre Windsor High School, N.S.W.-The ' WIMS ' project- structuring a learning environment consistent with the needs, interests and abilities of the nonacademic adolescent. Professor M. D. Neale, Monash University, Victoria, 'Predictive studies of learning disabilities'. **Dr C.** Reye and Miss B. Le Gay Brereton, Spastic Centre of N.S.W.- 'The part played by visuo-motor skills and movement in the development of readiness for formal education'. Professor D. Spearritt, University of Sydney, N.S.W.- 'Identification and measurement of components of reading comprehension'. **Mr S.** W. Woods, Western Australian Education Department 'The extent and cause of reading disability in the primary school'. {: type="1" start="2"} 0. The Schools Commission makes grants to the States for recurrent expenditure on primary and secondary education and the major impact of these grants has been the employment of additional teachers and specialist staff (including psychologists and guidance officers). The Schools Commission also makes grants to the States for special education teacher training courses. The aim of these courses is to allow teachers to improve their identification of individual learning problems and as a result enable them to prepare appropriate programs. However since recurrent expenditure and special education teacher training courses are general programs, it is not possible to attribute particular sums as being for persons employed in the identification of children with learning difficulties. {:#subdebate-82-7} #### Roads: Grants to States (Question No. 2384) {: #subdebate-82-7-s0 .speaker-2E4} ##### Mr Lloyd: asked the Minister for Transport, upon notice: {: type="1" start="1"} 0. How many complaints has he received from rural municipalities over reduced grants for rural local roads under the new Commonwealth Aid Roads Agreement. 1. Does the Government intend to increase the grant for this class of road. {: #subdebate-82-7-s1 .speaker-KDV} ##### Mr Charles Jones:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. 116. 1. At the Premiers' Conference in February of this year, the Premiers were asked what additional road funds they required in 1974-7S to maintain their scheduled road programs. The Premiers asked for an additional $30 million, and this amount was made available. Of this, S3.96 million was allocated to Rural Local roads. {:#subdebate-82-8} #### Judges: Rank and Status (Question No. 2407) {: #subdebate-82-8-s0 .speaker-00ATA} ##### Mr Hodges:
PETRIE, QUEENSLAND asked the Attorney-General, upon notice: >How many positions under legislation of the Australian Parliament other than judges of Courts of the Commonwealth of Australia have the same rank and/or status of one or other of such judges, identifying in each case (a) the authority or body concerned, (b) the number of positions within each such authority or body, (c) the particular rank or status established in each case and the number of persons appointed to date. {: #subdebate-82-8-s1 .speaker-8H7} ##### Mr Enderby:
ALP -- The answer to the honourable member's question is as follows: >The President and all Deputy Presidents of the Australian Conciliation and Arbitration Commission have the rank and status (but not in all cases the designation) of a Judge of the Australian Industrial Court. As many Deputy Presidents as are necessary from time to time may be appointed to the Commission. At the present time, the President and ten Deputy Presidents hold such positions. At the present time no other person holds such rank and /or status in any position under legislation of the Australian Parliament. Aircraft: Non-smoking Seats (Question No. 2422) {: #subdebate-82-8-s2 .speaker-2E4} ##### Mr Lloyd: asked the Minister for Transport, upon notice: {: type="1" start="1"} 0. Has he received any requests from other Ministers or Departments or individuals for an increased number of nonsmoking seats in large commercial aircraft operating in Australia 1. Has he discussed this matter with airline representatives. 2. Do Australian airlines provide a smaller number of such seats than the international average for similar aircraft. {: #subdebate-82-8-s3 .speaker-KDV} ##### Mr Charles Jones:
ALP -- The answer to the honourable member's question is as follows: ( 1 ), (2) and (3) As a non-smoker myself, I have been personally interested in the development of non-smoking areas in Australian domestic aircraft. In February 1972, Ansett Airlines and TAA agreed to set aside groups of seats in both first class and economy class compartments for non-smokers, who might ask to be seated in these areas when seats were being allocated prior to the departure of the flight. At that time 1 8 seats were set aside for non-smokers in DC-9 aircraft and 20 seats in Boeing 727- 100 aircraft. Since the introduction of non-smoking seats, which I might add were not widely availed of initially, both Ansett Airlines and TAA have carried out continuous market surveys to ensure that the provision of non-smoking seats has kept pace with social trends. In this regard, non-smokers are now provided with 27 seats on DC-9 aircraft, 30 seats on B727-100 aircraft and 36 seats on Boeing 727-200 aircraft, the number of seats being proportionate between first class and economy class compartments. I am sure that you will also be interested to learn that Qantas Airways has recently doubled its seat allocation for nonsmokers and now provides up to 108 non-smoking seats on Boeing 747 aircraft and 40 non-smoking seats on Boeing 707 aircraft. Although some other international airlines do provide slightly more non-smoking seats, it is pleasing to see Qantas adapting to passenger requirements. It must be recognised however, that a significant number of air travellers do wish to smoke and would undoubtedly object strenuously to measures preventing them from doing so. The airlines are of course sensitive to this as, indeed, they are to the position of the non-smoker. The arrangements which they have introduced for the segregation of smokers and non-smokers is essentially a compromise. Nevertheless, it is an encouraging development in line with social trends and one which I am personally keen to see pursued further. As the level of community reaction against smoking increases, as hopefully it will, the arrangements made by the airlines for the accommodation of smokers on their aircraft will unquestionably reflect this changed community attitude. We might look forward, perhaps, to the assignment of smokers to seats in smoking areas, segregated from the majority of non-smokers. For the present, however, the airlines are endeavouring to ensure that their passengers, both smokers and non-smokers alike, are subject to the minimum of inconvenience ABC Rock Station 2J J (Question No. 2466) {: #subdebate-82-8-s4 .speaker-JUS} ##### Mr McVeigh:
DARLING DOWNS, QUEENSLAND asked the Minister for the Media, upon notice: {: type="1" start="1"} 0. Does 2JJ, the Sydney ABC Rock Station, have the same controls placed on it by the Broadcasting Control Board as are placed by the Board on commercial radio stations already established; if not, why not. 1. 2 ) If commercial stations transmitted similar programs to 2JJ, would their licences be revoked. 2. Is it planned to establish an ABC Rock Station in Melbourne. 3. If so, will it be heavily promoted, at taxpayers' expense, in competition with already established commercial stations. {: #subdebate-82-8-s5 .speaker-JNG} ##### Dr Cass:
ALP -- The answer to the honourable member 's question is as follows: {: type="1" start="1"} 0. 1 ) The Government's policy is to guarantee political and programming independence to the ABC. Under the provisions of the Broadcasting and Television Act, the ABC is responsible for the content and standards of its programs in radio and television. The Commission acknowledges, but is not subject to, the program standards determined by the Broadcasting Control Board. The Commission has laid down guidelines and standards which are communicated to the program staff. If the Management of the ABC believes these standards are being misinterpreted then Management deals with the matter internally at an appropriate level. This is a long standing ABC practice. 1. I am aware of no 2JJ programs which, if transmitted on a commercial station, would nave required the consideration of licence revocation. As far as I am aware, only one of 2JJ's programs has been the subject of particular complaint. I am advised that the reports of these complaints do not represent a fair review of the output of the station, which devotes a great deal of time to community service programming. In making any recommendations concerning the licensing of commercial stations, I believe the Broadcasting Control Board similarly would take account of a station's overall performance. 2. and (4) When the Government allocated a new frequency to the ABC in Melbourne, the ABC chose to use it for access broadcasting. The new station opened on 12 May and the ABC advises me that there are no present plans to establish an ABC Rock Station in Melbourne. Although there are reception difficulties connected with its temporary use of standby equipment, 2JJ has been extremely well received by its target audience, thus proving the need for such stations despite already established commercial stations. I have been informed that 2 JJ has a significant audience in Wollongong and that even in Melbourne young people tune in to it at night. Those people who don't like it can simply tune in to another frequency, a beloved commercial station perhaps. I assure the Honourable Member that there is no intention, and indeed it would be impossible, to make listening to 2JJ compulsory. The success of 2JJ highlights a need which might well prompt the ABC to consider catering for this potential audience in other States, although this is for the Commission to decide for itself. {:#subdebate-82-9} #### Alexander and Thomas Barton (Question No. 2494) {: #subdebate-82-9-s0 .speaker-CV4} ##### Mr Jacobi:
HAWKER, SOUTH AUSTRALIA asked the Attorney-General, upon notice: {: type="1" start="1"} 0. What is the present state of proceedings to extradite Alexander and Thomas Barton from Paraguay. 1. In what circumstances are the Bartons living in Paraguay, and can he say whether (a) they are living on money which may belong to the creditors of their own bankrupt companies and (b) any money, the property of the creditors of their bankrupt companies, is being used in their defence against extradition proceedings being brought by the Australian Government. 2. Can he also say what is the scale of expenditure undertaken by the Bartons to prevent their extradition to Australia. 3. Has the Australian Government received any support from the New South Wales Government in its efforts to extradite the Bartons from Paraguay, and is there any indication that that Government may not be anxious for the Bartons' return to this country in spite of their allegedly fraudulent acts. 4. Will the Corporations and Securities Industry Bill remedy the defects m State legislation which enabled the Bartons to carry out their alleged frauds; if not, can he say whether the law of New South Wales is the same as it was when the Bartons committed these alleged frauds. {: #subdebate-82-9-s1 .speaker-8H7} ##### Mr Enderby:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. 1 ) Australia's application for extradition of the Bartons is now before the Court in Paraguay. 1. The Bartons are confined in jail. I am unable to give any information concerning the source of their funds. 2. No. 3. Yes. The Australian Government's request for the extradition of the Bartons was made at the request of the Attorney-General of New South Wales. Federal and State legal officers are at present in Asuncion for the purpose of assisting in the proceedings. 4. While there are limits to the extent to which any legislation by itself can prevent frauds, the proposed Corporations and Securities Industry Act will materially assist in this regard. It would be inappropriate to comment on allegations against the Bartons which are sub judice. {:#subdebate-82-10} #### Education: Interskola Conferences (Question No. 2517) {: #subdebate-82-10-s0 .speaker-2E4} ##### Mr Lloyd: asked the Minister for Education, upon notice: >Does the Australian Department of Education or do any of the State Departments of Education belong to or attend conferences of Interskola, an international organisation studying the problems of education in sparsely populated rural areas. {: #subdebate-82-10-s1 .speaker-JF7} ##### Mr Beazley:
ALP -- The answer to the honourable member's question is as follows: >Interskola conferences are, I understand, oriented towards European countries. According to information contained in the report on the 1974 Interskola conference, the conference series was originated by **Mr I.** Findlay of the Aberdeen College of Education in Scotland in 1968. Interskola conferences have now taken place in Scotland (twice), Norway (twice), Sweden, Finland and Eire. I understand the 1975 conference is to be held in Bangor, North Wales. At the 1974 meeting, approximately 75 per cent of the delegates were Scottish. Other representatives were from Norway, Sweden, Wales and the Irish Republic. Financial assistance for the 1974 conference was provided by the Highlands and Islands Development Board and the British Council. My Department does not belong to Interskola and has not sent representatives to participate in Interskola conferences. Officers of my Department have contacted State Departments of Education on this matter and have been advised that no State Department has participated in Interskola activities. {:#subdebate-82-11} #### Northern Territory: Egg Production and Marketing (Question No. 2523) {: #subdebate-82-11-s0 .speaker-JRD} ##### Mr Bourchier: asked the Minister for Northern Australia, upon notice: {: type="1" start="1"} 0. With reference to the 85 000 bird quota supplied to poultry farmers in the Australian Capital Territory, is there a quota operating in the Northern Territory. 1. If so, has consideration been given to establishing limits of production in the Northern Territory in order to facilitate orderly marketing throughout Australia. {: #subdebate-82-11-s1 .speaker-KXV} ##### Dr Patterson:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. 1 ) Unlike the A.C.T. the Northern Territory currently has no statutory controls over egg production and marketing. Darwin egg producers, however, are operating under a voluntary scheme of orderly marketing and production controls based on the demand of the Darwin market. 1. Over recent months the matters of statutory production controls and orderly marketing of eggs have received considerable attention by my Department and Northern Territory producers. Information to assist them has been sought and received from state departments of Agriculture, Egg Marketing Boards and other interstate egg industry people. Discussions are continuing. Pipeline from Cooper Basin to Palm Valley (Question No. 2532) {: #subdebate-82-11-s2 .speaker-QF4} ##### Mr Connolly:
BRADFIELD, NEW SOUTH WALES asked the Minister for Minerals and Energy, upon notice: {: type="1" start="1"} 0. Did he state on 30 July 1974, and prior to that date, that a pipeline from the Cooper Basin to Palm Valley was to be constructed; if so, will he give an assurance that this pipeline will not be built until adequate reserves are proven. 1. Will he also give an assurance that competent technical advice will be sought prior to the expenditure of taxpayers' money on drilling at Palm Valley, and will he table a precis of this advice. 2. In view of the small amount of drilling carried out to date at Palm Valley, will private enterprise be encouraged to proceed with drilling or will the Government insist on taking over the operation. 3. Has the Pipeline Authority completed economic feasibility studies for this proposed section of pipeline. 4. Are plans to proceed with construction of the pipeline firmly established. 5. Which market or markets are to receive gas from Palm Valley. 6. Will there be a second pipeline from Palm Valley to the Cooper Basin to carry liquids recovered from Palm Valley; if so, are plans to proceed with its construction firmly established; if not, how does the Pipeline Authority propose to deal with these liquids. 7. Will these liquids be carried by pipeline from the Cooper Basin to Adelaide. 8. How does the Pipeline Authority propose to use these liquids. {: #subdebate-82-11-s3 .speaker-K0O} ##### Mr Connor:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. Yes; yes. 1. Yes but a precis will not be tabled because that would disclose confidential commercial information. 2. I announced on 7 November 1974 that further drilling arrangements at Palm Valley would be a function of the Petroleum and Minerals Authority. Pending reestablishment of that Authority, following the High Court's judgement of 24 June, its functions will be undertaken by the Petroleum and Minerals Company of Australia Pry Ltd. 3. No. 4. to (9) See answers to ( 1 ) and (4). {:#subdebate-82-12} #### Rural Industries: Assistance (Question No. 2568) {: #subdebate-82-12-s0 .speaker-BU4} ##### Mr Anthony: asked the Treasurer, upon notice: {: type="1" start="1"} 0. What are the details of the $670m allocated to rural industry, to which his predecessor referred on 2 1 May 1 975. 1. Will he indicate whether each amount which makes up this total is a grant or a repayable loan. {: #subdebate-82-12-s1 .speaker-RK4} ##### Mr Hayden:
ALP -- The answer to the right honourable member's question is as follows: {: type="1" start="1"} 0. 1 ) The figure of $670 m mentioned by the then Treasurer in the House of Representatives on 21 May 1975 was the estimate at the time of outlays in 1974-75 for direct assistance to rural industries. In the event the actual expenditure in 1974-75 was $592m. The table on pages 60 and 61 of the Statement attached to the 1974-75 Budget Speech provides the details of the outlays for rural industries as estimated at Budget time. Some further items were introduced after presentation of the Budget, the main ones being Wool Marketing Loan Assistance (involving in 1974-75 an expenditure of $276m against an estimate of $350m) and advances to the Commonwealth Development Bank for Rural Lending ($20m). The total outlay of $592m does not take account of the proceeds of such industry levies and charges as the wool tax and meat export charge, details of which are shown in the 1 974-75 Budget Statement No. 4. 1. Loans represented $339m of the 1974-75 expenditure for rural industries assistance. {:#subdebate-82-13} #### Government Reports: Publication (Question No. 2588) {: #subdebate-82-13-s0 .speaker-QH4} ##### Mr Kerin:
MACARTHUR, NEW SOUTH WALES asked the Minister for Minerals and Energy, upon notice: {: type="1" start="1"} 0. What reports, excluding annual reports have been produced by his Department, by authorities for which he is responsible, and by ad hoc commissions, committees, task forces, etc., within his portfolio, since 5 December 1972. 1. Which of these reports have not been published, and when does he expect them to be published. {: #subdebate-82-13-s1 .speaker-K0O} ##### Mr Connor:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. and (2) I refer the honourable member to the reply, given by the Prime Minister to Question No. 2586, which appeared in Hansard (page 3545) on 5 June 1975. {:#subdebate-82-14} #### Government Reports: Publication (Question No. 2592) {: #subdebate-82-14-s0 .speaker-QH4} ##### Mr Kerin: asked the Minister for Overseas Trade, upon notice: {: type="1" start="1"} 0. 1 ) What reports, excluding annual reports, have been produced by his Department, by authorities for which he is responsible, and by ad hoc commissions, committees, task forces, etc., within his portfolio, since 5 December 1972. 1. Which of these reports have not been published, and when does he expect them to be published. {: #subdebate-82-14-s1 .speaker-JAG} ##### Mr Crean:
Minister for Overseas Trade · MELBOURNE PORTS, VICTORIA · ALP -- The answer to the honourable member's question is as follows: >I refer the honourable member to the answer which the Prime Minister provided to a similar question, No. 2586, which appeared in Hansard of 5 June 1975 (page 3545). {:#subdebate-82-15} #### Government Reports: Publication (Question No. 2599) {: #subdebate-82-15-s0 .speaker-QH4} ##### Mr Kerin: asked the Minister for Education, upon notice: {: type="1" start="1"} 0. What reports, excluding annual reports, have been produced by his Department, by authorities for which he is responsible, and by ad hoc commissions, committees, task forces, etc, within his portfolio, since 5 December 1972. 1. Which of these reports have not been published, and when does he expect them to be published. {: #subdebate-82-15-s1 .speaker-JF7} ##### Mr Beazley:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. and (2) I refer the honourable member to the Prime Minister's answer to Question No. 2586 (Hansard, 5 June 1975, page 3545). {:#subdebate-82-16} #### Government Reports: Publication (Question No. 2600) {: #subdebate-82-16-s0 .speaker-QH4} ##### Mr Kerin: asked the Minister representing the Special Minister of State, upon notice: {: type="1" start="1"} 0. What reports, excluding annual reports, have been produced by the Department of the Special Minister of State, by authorities for which he is responsible, and by ad hoc commissions, committees, task forces, etc., within the Minister's portfolio, since 5 December 1972. 1. Which of these reports have not been published, and when does the Minister expect them to be published. {: #subdebate-82-16-s1 .speaker-ZE4} ##### Mr Lionel Bowen:
ALP -- The Special Minister of State has provided the following answer to the honourable member's question {: type="1" start="1"} 0. and (2) See the Prime Minister's answer to Question No. 2586 (Hansard, page 3545). {:#subdebate-82-17} #### Government Reports: Publication (Question No. 2606) {: #subdebate-82-17-s0 .speaker-QH4} ##### Mr Kerin: asked the Minister for Health, upon notice: {: type="1" start="1"} 0. What reports, excluding annual reports, have been produced by his Department, by authorities for which he is responsible, and by ad hoc commissions, committees, task forces, etc., within his portfolio, since 5 December 1972. 1. Which of these reports have not been published, and when does he expect them to be published. {: #subdebate-82-17-s1 .speaker-KDP} ##### Dr Everingham:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. and (2) I refer the honourable member to the Prime Minister's reply to question 2586. {:#subdebate-82-18} #### Government Reports: Publication (Question No. 2607) {: #subdebate-82-18-s0 .speaker-QH4} ##### Mr Kerin: asked the Attorney-General, upon notice: {: type="1" start="1"} 0. What reports, excluding annual reports, have been produced by his Department, by authorities for which he is responsible, and by ad hoc commissions, committees, task forces, etc., within his portfolio, since 5 December 1 972. 1. Which of these reports have not been published, and when does he expect them to be published. {: #subdebate-82-18-s1 .speaker-8H7} ##### Mr Enderby:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. 1 ) and (2) I refer the honourable member to the information provided by the Prime Minister in reply to Question No. 2586 (House of Representatives Hansard 5 June 1975, page 3545). {:#subdebate-82-19} #### Government Reports: Publication (Question No. 2608) {: #subdebate-82-19-s0 .speaker-QH4} ##### Mr Kerin: asked the Minister representing the Minister for Police and Customs, upon notice: {: type="1" start="1"} 0. What reports, excluding annual reports, have been produced by the Department of Police and Customs, by authorities for which the Minister is responsible, and by ad hoc commissions, committees, task forces, etc., within the Minister's portfolio, since 5 December 1972. 1. Which of these reports have not been published, and when does the Minister expect them to be published. {: #subdebate-82-19-s1 .speaker-8H7} ##### Mr Enderby:
ALP -- The Minister for Police and Customs has provided the following answer to the honourable member's question: {: type="1" start="1"} 0. and (2) I refer the honourable member to the reply given by the Prime Minister to Question No. 2586, which appeared in Hansard (page 3545) on 5 June 1975. Report of Working Party on Medical and Surgical Aids and Appliances (Question No. 2624) {: #subdebate-82-19-s2 .speaker-2E4} ##### Mr Lloyd: asked the Minister for Health, upon notice: {: type="1" start="1"} 0. 1 ) have the working party reports on hearing aids and spectacles not been released when the reports on home dialysis and ostomy appliances have been released. 1. Why was a copy of the report on hearing aids given to the Industries Assistance Commission but not to Parliament. 2. 3 ) When is it proposed to release these reports. {: #subdebate-82-19-s3 .speaker-KDP} ##### Dr Everingham:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. The report of the Working Party on Medical and Surgical Aids and Appliances on hearing aids was prepared within the Department of Health to advise me as Minister for Health on implementation of the Government's long standing policy to provide hearing aids free of charge to those who require them. The Working Party's report is not a statement of Government policy or a public discussion paper. Considerable discussion has, however, occurred with hearing aid distributors. The Working Party's report on spectacles is still being prepared. 1. The Industries Assistance Commission has been inquiring into various aspects of the provision of hearing aids in Australia (Review No. 6 Electronic and Electronic Equipment, Enquiry E2- Other Electronic Equipment Excluding ADP Equipment). My Department made a submission to the Commission concerning the Government's involvement in the provision of hearing aids through the National Acoustic Laboratories. The Working Party's report on hearing aids, which was made available to the Commission on a confidential basis, was one of several documents making up this submission. 2. I do not plan to make all Working Party reports public as a matter of course but in general this will be done at the appropriate time. I consider I should read the completed report on spectacles before making a decision on when and whether or not it should be made public {:#subdebate-82-20} #### Health: Orthoses (Question No. 2625) {: #subdebate-82-20-s0 .speaker-2E4} ##### Mr Lloyd: asked the Minister for Health, upon notice: {: type="1" start="1"} 0. 1 ) Is the Government about to introduce a free scheme for orthotics. 1. If so, what appliances will be included, and what will be the criteria for receival of aid. 2. Has the Australian Institute of Orthotists been consulted in this proposal; if not, why not. 3. Will the private sector be allowed to continue to provide appliances under this scheme or will a Government factory do this work. {: #subdebate-82-20-s1 .speaker-KDP} ##### Dr Everingham:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. The Government is giving consideration to the provision under the National Health Act of orthoses to those who need them. This matter has been referred to the Working Party on Medical and Surgical Aids and Appliances and the National Advisory Council on the Handicapped for investigation and report. The recommendations made will be carefully considered by the Government. 1. The appliances which might be provided and criteria for receipt of aid are matters on which recommendations will be made in the reports referred to in ( 1 ) above. I would envisage that a comprehensive range of appliances would be made available and that necessary adaptations to these appliances to suit the needs of individual patients would be included in the scheme. On the criteria for receipt of aid, I refer to the Labor Party Platform objective of providing prosthetic aids and appliances free of charge and free of means test to all who need them, which I anticipate will be carefully considered in the formulation of recommendations by the Working Party and the National Advisory Council on the Handicapped. 2. I do not know of any organisation named the Australian Institute of Orthotists. A Sub-committee of the Working Party was set up to provide expert advice on orthoses and membership of the Subcommittee included experts in orthopaedics, rehabilitative medicine and splint making and fitting. The last mentioned member of the Sub-committee is also an eminent member of the representative body of splint makers, the Australian Institute of Surgical Technicians. {: type="1" start="4"} 0. The Government provides orthoses to clients of the Department of Repatriation and Compensation through Repatriation Artificial Limb and Appliance Centres and these Centres would continue to provide orthoses in the event of Government assistance being extended to other people in the community. The Government has, however, accepted the recommendation of the Report on Rehabilitation and Compensation in Australia (The Woodhouse Report) that there should not be a monopoly in the provision of aids and appliances and that healthy competition will tend to increase both quality of aids and service. I have no doubt that the Working Party and the National Advisory Council on the Handicapped will take this into consideration when making recommendations concerning orthoses. Committee of Inquiry into the Citizen Military Forces: Report (Question No. 2638) {: #subdebate-82-20-s2 .speaker-4U4} ##### Mr Killen: asked the Minister for Defence, upon notice: >Did the Report of the Committee of Inquiry into the Citizen Military Forces recommend that a computer system be introduced for personal and pay records for all Reserve personnel; if so, has action been taken to implement the recommendation. {: #subdebate-82-20-s3 .speaker-009DB} ##### Mr Morrison:
Minister Assisting the Minister for Foreign Affairs in matters relating to the Islands of the Pacific · ST GEORGE, NEW SOUTH WALES · ALP -- The answer to the honourable member's question is as follows: {: type="a" start="a"} 0. The Committee of Inquiry into the Citizen Military Forces did recommend a computer system for personal and pay records for members of the Army Reserve. In making this recommendation, the Committee recognized that the proposed system would be a long term major undertaking. 1. The Committee's recommendation is being studied by the Department of Defence with a view to implementation as soon as possible. {:#subdebate-82-21} #### Victorian Railways (Question No. 2641) {: #subdebate-82-21-s0 .speaker-KM8} ##### Mr Oldmeadow:
HOLT, VICTORIA asked the Minister for Transport, upon notice: >What (a) loans and (b) grants have been made by the Australian Government to the Victorian Government for the Victorian Railways in each year since December 1 972. {: #subdebate-82-21-s1 .speaker-KDV} ##### Mr Charles Jones:
ALP -- The answer to the honourable member's question is as follows: {: type="a" start="a"} 0. No Australian Government assistance by way of loans has been provided. 1. The Australian Government has provided financial assistance by way of non-repayable grants to the Victorian Government towards the improvement of Urban Public Transport under the States Grants (Urban Public Transport) Act 1974 and the Appropriation (Urban Public Transport) Act 1974. Details of the assistance approved for railway projects in Victoria are as follows: Assistance approved: 1973-74, $8.97m; 1974-75, $10.08m; 1975-76, $8.38m; 1976-77, $5.55m; 1977-78, $3.56m. Total $36.54m. It is expected that additional amounts will subsequently be made available in the future years of the program. Under the Transport (Planning and Research) Act 1974 the Australian Government has allocated $26m over the three years 1974-75 to 1976-77 for a transport planning and research program by the States. Of this total allocation $175,550 has so far been provided for Victorian railway projects. The Australian Government also provided $1.0m for 1973-74 under the Urban Public Transport (Research and Planning) Act 1974 of which $4,700 was allocated for Victorian railway planning and research projects. {:#subdebate-82-22} #### Defence Services: Civilians (Question No. 2652) {: #subdebate-82-22-s0 .speaker-4U4} ##### Mr Killen: asked the Minister for Defence, upon notice: >How many civilians were employed by the Defence Services on: > >4 December 1973 and > >26 May 1975 {: #subdebate-82-22-s1 .speaker-009DB} ##### Mr Morrison:
ALP -- The answer to the honourable member's question is as follows: {:#subdebate-82-23} #### Catholic Schools: Grants (Question No. 2662) {: #subdebate-82-23-s0 .speaker-K9L} ##### Mr Garland: asked the Minister for Education, upon notice: >When will he answer my question No. 1803 that was placed on the Notice Paper on 19 November 1974 and was unanswered by 23 May 1975. {: #subdebate-82-23-s1 .speaker-JF7} ##### Mr Beazley:
ALP -- The answer to the honourable member's question is as follows: >My answer to Question No. 1803 appeared in Hansard (page 3535)on5 June 1975. {:#subdebate-82-24} #### Bills of Exchange and Cheques (Question No. 2663) {: #subdebate-82-24-s0 .speaker-K9L} ##### Mr Garland: asked the Attorney-General, upon notice: >When will he answer my question No. 1986 that was placed on the Notice Paper on 18 February 1975 and was unanswered by 23 May 1975. {: #subdebate-82-24-s1 .speaker-8H7} ##### Mr Enderby:
ALP -- The answer to the honourable member's question is as follows: >An answer to Question No. 1986 was provided on 4 June 1975 (Hansard page 3377). {:#subdebate-82-25} #### Treaty of Nara (Question No. 2704) {: #subdebate-82-25-s0 .speaker-MI4} ##### Mr Peacock: asked the Minister representing the Minister for Foreign Affairs, upon notice: {: type="1" start="1"} 0. What progress has been made to date with the preparation and signature of a treaty between Australia and Japan referred to as the Treaty of NARA. 1. Have problems arisen with respect to the proposed Treaty. 2. If so, what are these problems, and what action is being taken to overcome them. {: #subdebate-82-25-s1 .speaker-6U4} ##### Mr Whitlam:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. A large measure of agreement has been achieved on the draft treaty. 1. and (3) During negotiations, a number of questions have emerged requiring further examination and clarification by both sides. Examination of these questions, which relate mainly to the economic area, are at present being conducted through diplomatic channels. {:#subdebate-82-26} #### Africa: National Liberation Movements (Question No. 2708) {: #subdebate-82-26-s0 .speaker-MI4} ##### Mr Peacock: asked the Minister representing the Minister for Foreign Affairs, upon notice: {: type="1" start="1"} 0. What aid has been given by the Government to liberation movements in Africa to date. 1. To what liberation movements has this aid been given. 2. How will this aid be dispersed, by whom, and for what purposes in each case. {: #subdebate-82-26-s1 .speaker-6U4} ##### Mr Whitlam:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. Australia has provided an amount of $150,000 as humanitarian assistance for national liberation movements in Africa. Provision for this assistance was made in the Budget for 1974-75. 1. The Australian contribution was allocated for a United Nations Children's Fund (UNICEF) project in Zambia which was designed to assist women and children under the care of a number of liberation movements, including the Popular Movement for the Liberation of Angola (MPLA), the South-West African People's Organisation (SWAPO), the Zimbabwe African People's Union (ZAPU), the Zimbabwe African National Union (ZANU) and the African National Congress (ANC). 2. The amount of $150,000 was paid to UNICEF for expenditure by that organisation on an agreed program for the provision of tents, blankets and other domestic supplies, classroom equipment and school materials, drugs and medical equipment, food production equipment, and training of medical assistants and nurses. {:#subdebate-82-27} #### Cyprus (Question No. 2713) {: #subdebate-82-27-s0 .speaker-MI4} ##### Mr Peacock: asked the Minister representing the Minister for Foreign Affairs, upon notice: {: type="1" start="1"} 0. What assistance has been given to Cyprus since the conflict there in 1974. 1. Did the United Nations request that Australia send additional Police Force representatives to Cyprus; if so, what response was given. 2. How many Australian policemen and women are currently serving in Cyprus. 3. What are their functions. 4. Where are they stationed, and what is their term of service. {: #subdebate-82-27-s1 .speaker-6U4} ##### Mr Whitlam:
ALP -- The Foreign Minister has provided the following answers to the honourable member's question: {: type="1" start="1"} 0. On 28 August 1974, Australia contributed $30,000 to the International Red Cross for immediate relief work on Cyprus. On 28 November the Acting Foreign Minister announced a gift of 31.5 tonnes of Australian canned beef, worth $50,000 to the UN High Commissioner for Refugees' appeal for aid for displaced persons on Cyprus. On 14 May 1975 Australia announced a further contribution of 39.6 tonnes of meat, worth $50,000 to the UNHCR appeal. Together with 192 tonnes of rice worth $55,000 given via the World Food Program to displaced persons on Cyprus, the total Australian official assistance for humanitarian work is now $205,000. In addition, at the request of the Government, Qantas has carried free of charge a considerable quantity of foodstuffs and other items collected by voluntary organisations in Australia for distribution on Cyprus. Besides direct aid, there have been other Australian forms of assistance. On 13 December the UN Security Council, then under the Presidency of the Australian Representative, extended until 15 June 1975 the mandate of the UN Peace Keeping Force and subsequently the Australian Government reaffirmed to the Secretary-General of the United Nations its willingness to maintain our contingent of civilian police as part of the peacekeeping force there. Australia has also taken a receptive approach to the admission into Australia of displaced persons from Cyprus. 1. Following the outbreak of hostilities in Cyprus in July 1974, the Secretary-General appealed to all countries contributing personnel to UN peacekeeping forces in Cyprus to increase their contingents. In response Australia offered to provide a military contingent of about 200 men, but this offer was not taken up. 2. There are currently thirty-five Australian policemen serving in Cyprus. Superintendent James Hamilton, O.B.E., Q.P.M., of the Australian Police has just been appointed the Police Adviser with UNFICYP. He was also Police Adviser to the Commanding General of UNFICYP from 1964 to 1966. 3. As civilian police attached to the United Nations peacekeeping force in Cyprus (UNFICYP) the functions of the police are to undertake patrolling duties, investigation and community liaison work in their areas of responsibility. 4. The members of the Australian civilian police contingent are variously stationed at Liamssol Paphos polis and at the United Nations Headquarters, Nicosia. The term of service of each policeman is one year. {:#subdebate-82-28} #### Department of Foreign Affairs Public Information Program (Question No. 2714) {: #subdebate-82-28-s0 .speaker-MI4} ##### Mr Peacock: asked the Minister representing the Minister for Foreign Affairs, upon notice: {: type="1" start="1"} 0. What formal contact does the Department of Foreign Affairs maintain with groups in the community specifically interested in foreign policy questions? 1. Will the Minister list the groups concerned indicating the form of communication which is maintained in each case. {: #subdebate-82-28-s1 .speaker-6U4} ##### Mr Whitlam:
ALP -- The Foreign Minister has provided the following answer to the honourable member's question: {: type="1" start="1"} 0. 1 ) The Department of Foreign Affairs maintains contact with a large number of groups and individuals within the community interested in foreign affairs, mainly through its publications, itss public speaking program, and its contact with the media. The publications issued on a regular basis by the Department in this context are listed in Appendix III on page 1 12 of the Annual Report of the Department for 1 974. They are sent to libraries, universities, schools, organs of the media and individuals. The Department also accepts invitations from various groups in the community for speakers on foreign policy subjects and maintains close contact with the media. I attach importance to these activities which help significantly to encourage public understanding and discussion of foreign affairs and of Australia 's role in the world. 1. The groups in the community with which the Department of Foreign Affairs maintains contact in the ways mentioned in ( 1.) include educational institutions such as universities and schools, professional, community and charitable associations, and the media. {:#subdebate-82-29} #### International Energy Agency (Question No. 2717) {: #subdebate-82-29-s0 .speaker-MI4} ##### Mr Peacock: asked the Minister representing the Minister for Foreign Affairs, upon notice: {: type="1" start="1"} 0. 1 ) Has the Government announced that it will not participate in the International Energy Agency. 1. If so, is this still the case; if not, what action has been taken to change this stand. {: #subdebate-82-29-s1 .speaker-6U4} ##### Mr Whitlam:
ALP -- The Foreign Minister has provided the following answer to the honourable member's question: {: type="1" start="1"} 0. Membership of' the International Energy Agency is confined to those OECD members who adhered to the agreement establishing the International Energy Program. Australia informed the OECD that it did not wish to adhere to the agreement. 1. Yes. Law of the Sea (Question No. 2720) {: #subdebate-82-29-s2 .speaker-MI4} ##### Mr Peacock: asked the Minister representing the Minister for Foreign Affairs, upon notice: {: type="1" start="1"} 0. 1 ) What part has the Department of Foreign Affairs played in consideration of Law of the Sea questions since I January 1974. 1. What action in currently being taken. 2. What is the relationship between the Department of Foreign Affairs' involvement in these issues and the responsibility of the Attorney-General 's Department. {: #subdebate-82-29-s3 .speaker-6U4} ##### Mr Whitlam:
ALP -- The Foreign Minister has provided the following answer to the honourable member's question: {: type="1" start="1"} 0. In the period since 1 January 1974 consideration of Law of the Sea questions has been carried out principally in an interdepartmental committee and an interdepartmental task force, in which all Departments directly interested in Law of the Sea questions, including Foreign Affairs and Attorney-General's, have been represented. In keeping with the considerable significance which these questions have for Australian foreign policy, and the Foreign Affairs Department's responsibilities in relation to international conferences and negotiations, these two interdepartmental bodies have been chaired by senior Foreign Affairs officers. Similarly, Australian delegations to the Caracas session of the Law of the Sea Conference in 1974 and the Geneva session in 1973 have been led by the Minister for Foreign Affairs and, in his absence, by a senior Foreign Affairs officer and have included a number of other Foreign Affairs officers, as well as a senior officer of the Attorney-General's Department. 1. Since the end of the Third (Geneva) session of the Law of the Sea Conference on 9 May 1975 the interdepartmental task force has been reconvened by the Department of Foreign Affairs and has begun a review of the results of the Geneva session and preparations for the next session of the Conference, to be held in New York, commencing in March 1976. 2. Law of the Sea questions raise important issues which fall within the area of responsibility of a number of departments. It is for this reason that work on these issues has largely been carried out through the medium of an interdepartmental task force, so that all interested departments have been able to take part in consideration of the issues and formulate recommendations to Ministers, so discharging their responsibilities. This applies in particular to the Attorney-General's Department, which has responsibilities in relation to a number of the issues involved. {:#subdebate-82-30} #### Antarctica (Question No. 2724) {: #subdebate-82-30-s0 .speaker-MI4} ##### Mr Peacock: asked the Minister representing the Minister for Foreign Affairs, upon notice: {: type="1" start="1"} 0. What agreements or other arrangements with respect to the Australian Antarctic Territory has the Government entered into since 2 December 1972. 1. What is the effect of these agreements or other arrangements. 2. When is the next meeting of nations involved in the Antarctic to be held. {: #subdebate-82-30-s1 .speaker-6U4} ##### Mr Whitlam:
ALP -- The Foreign Minister has provided the following answer to the honourable member's question: {: type="1" start="1"} 0. and (2) The Government has not entered into any agreements or arrangements with other Governments with respect to the Australian Antarctic Territory since 2 December 1972. 1. The Eighth Consultative Meeting of the Contracting Parties was held in Oslo from 9 to 20 June 1975. The next Consultative Meeting is scheduled to be held in London in 1977. In accordance with the usual practice, it is expected that there will be a preparatory meeting or meetings before the next Consultative Meeting, but no firm details have yet been settled. {:#subdebate-82-31} #### Fraser Island (Question No. 2730) {: #subdebate-82-31-s0 .speaker-GH4} ##### Mr Hunt:
GWYDIR, NEW SOUTH WALES asked the Minister for Minerals and Energy, upon notice: >As the Opposition gave him leave to table the transcripts of the 1971 Mining Wardens Hearing covering leases 101 and 102 on Fraser Island, will he also table the reasons for the Wardens ' recommendations; if not, why not. {: #subdebate-82-31-s1 .speaker-K0O} ##### Mr Connor:
ALP -- The answer to the honourable member's question is as follows: >I am informed that the Warden's recommendations to the Queensland Minister for Mines and the reasons for his recommendations do not form part of a public document. I suggest therefore that the honourable member should raise this matter with the Queensland Minister for Mines. {:#subdebate-82-32} #### Department of Foreign Affairs Staff (Question No. 2747) {: #subdebate-82-32-s0 .speaker-MI4} ##### Mr Peacock: asked the Minister representing the Minister for Foreign Affairs, upon notice: {: type="1" start="1"} 0. 1 ) What is the current staff of the Department of Foreign Affairs. 1. How many of these are (a) Foreign Affairs Officers and (b) others. 2. How many of each group in part (2) are (a) overseas and (b) in Canberra. 3. How many of each group in part (2) are not Australian citizens. {: #subdebate-82-32-s1 .speaker-6U4} ##### Mr Whitlam:
ALP -- The Minister for Foreign Affairs has provided the following answer to the honourable member's question: {: type="1" start="1"} 0. 1 ) There are 1 82 1 Australia-based officers of the Department of Foreign Affairs, including 54 who are at present Executive Council appointees (i.e. Heads of Mission ). There are also 2741 locally-engaged staff serving at Australian Missions overseas. The total staff of the Department is therefore 4562. {: type="1" start="4"} 0. In selecting Foreign Affairs officers, the Department's policy is that recruits should have a substantial Australian background. Some recruits, however, while fulfilling the requirement on Australian background, have not been Australian citizens at the time they joined the Department. This is often because they belong to migrant families. Provided that, as required by the Public Service Act, they have been British subjects, there has been no formal requirement for them also to be Australian citizens in order to join the Australian Public Service and the Department of Foreign Affairs. In practice, of course, most such recruits have taken out Australian citizenship since joining the Department. A problem remains in relation to several of them: they have unfortunately found that they are not able to qualify for Australian citizenship because of their regular periods of service overseas have meant they cannot fulfil the requirement of a certain period of continuous residence in Australia immediately prior to the date they apply for Australian citizenship. The Department of Foreign Affairs is in contact with the Department of Labor and Immigration seeking an amendment to the Citizenship Act so that officers in this category are not precluded by virtue of the nature of their duties from becoming Australian citizens. Of the 2741 locally engaged staff at Australian Missions overseas, 489 are Australian citizens and 2252 are foreign nationals. {:#subdebate-82-33} #### Recruitment of Foreign Affairs Officers (Question No. 2748) {: #subdebate-82-33-s0 .speaker-MI4} ##### Mr Peacock: asked the Minister representing the Minister for Foreign Affairs, upon notice: {: type="1" start="1"} 0. Is it the Government's intention that the expertise of the Department of Foreign Affairs should be extended by the lateral recruitment of officers into the Department from other Departments or from outside the Australian Public Service; if so, what action has been taken to implement this intention. 1. How many officers have been recruited (a) from each of the other Departments and (b) from outside the Australian Public Service. 2. At what level has these officers been integrated into the Department of Foreign Affairs. {: #subdebate-82-33-s1 .speaker-6U4} ##### Mr Whitlam:
ALP -- The Minister for Foreign Affairs has provided the following answers to the honourable member's question: {: type="1" start="1"} 0. The majority of the Department's Foreign Affairs Officers are recruited at the Foreign Affairs Trainee level through the normal annual selection process. Some officers recruited in this way come from other Departments but most come from outside the Australian Public Service. The preferred age for Foreign Affairs Trainees is between 2 1 and 26 but older applicants including some in their early thirties are also recruited at this lowest level. In the time frame of a lifetime career, competent older entrants are not necessarily disadvantaged by coming in at the bottom. The Department of Foreign Affairs also recruits some Foreign Affairs officers at other more senior levels, normally from within the Australian Public Service.The Department considers all applications which are made to it at every level and judges each case on its merits. 1. and (3) Of the officers at present working in the Department, the number listed below were, during the past twenty years, recruited, at the levels indicated, in to the Department of Foreign Affairs from other Departments or from outside the Australian Public Service other than in the annual intake of Foreign Affairs Trainees: Two from the Department of the Prime Minister and Cabinet- one at FAO Class 3 level one at FAO Class 2 level One from the former Department of Supply at FAO Class 2 level two from the Department of the Treasury- one at Assistant Secretary level one at FAO Class 2 level One from the former Department of Territories at FAO Class 3 level one officer from outside the Australian Public Service at FAO Class 1 level. It should be noted that, in addition to the above, twenty officers who were already employed in the Department of Foreign Affairs in clerical and research positions have been transferred into Foreign Affairs Officer positions. Many of these were previously employed in other Departments and with international organisations before joining the Department of Foreign Affairs. There are also some officers at present serving in the Department of Foreign Affairs who have returned to it after spending varying periods of time elsewhere- in universities, private enterprise, and other Departments. These officers are not included in the above figures. Many Foreign Affairs officers transferring to other Departments have reached very senior levels, including the Permanent Head level. 'Machinery of Government' Advertising Campaign (Question No. 2750) {: #subdebate-82-33-s2 .speaker-2E4} ##### Mr Lloyd: asked the Minister for the Media, upon notice: {: type="1" start="1"} 0. 1 ) What sum will be spent in each of the media on advertising the Government's community health centre program. 1. Will this money be provided by the Department of Health, or is it part of a general allocation to promote Government policy. 2. If the latter, has the Department been consulted. {: #subdebate-82-33-s3 .speaker-JNG} ##### Dr Cass:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="2"} 0. and (3) This expenditure was met from my Department's 'Machinery of Government' advertising campaign vote as pan of an overall program to promote public awareness of communities in action with government. This program also included advertising about child care centres and education grants through the Schools Commission. The advertising campaign was approved by the Minister for Health and by senior officers of the Department of the Prime Minister and Cabinet. All arrangements for photography and filming at the Deer Park, Melbourne, Community Health Centre were made by the Australian Government Advertising Service of my Department, in association with officers of the Department of Health. {:#subdebate-82-34} #### Standards for Insulin Syringes and Needles (Question No. 2754) {: #subdebate-82-34-s0 .speaker-2E4} ##### Mr Lloyd: asked the Minister for Health, upon notice: {: type="1" start="1"} 0. What progress has been made since the answer to question No. 1 164 with the provision of a standard insulin syringe and needle. 1. When a standard syringe is approved, will it be provided free of charge as a medical and surgical aid. {: #subdebate-82-34-s1 .speaker-KDP} ##### Dr Everingham:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. 1 ) Standards for insulin syringes and needles are still under investigation in my Department. 1. Government approval and appropriation of funds for the purpose are required before an approved standard insulin syringe can be made available free of charge as a medical and surgical aid to insulin dependent persons. {:#subdebate-82-35} #### Government Reports: Cost (Question No. 2791) {: #subdebate-82-35-s0 .speaker-0J4} ##### Mr Ruddock: asked the Minister for Minerals and Energy, upon notice: {: type="1" start="1"} 0. With reference to question No. 2588 of the Member for Macarthur, what has been the total cost to the Government of examination of issues and preparation of reports by his Department, by authorities for which he is responsible, and by ad hoc commissions, committees, task forces, etc. within his portfolio, since 5 December 1972. 1. What is the cost apportioned to each report referred to in part ( 1 ) of question No. 2588. {: #subdebate-82-35-s1 .speaker-K0O} ##### Mr Connor:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. and (2) I refer the honourable member to the reply given by the Prime Minister to Question No. 2789 which appeared in Hansard (page 3546) on 5 June 1975. {:#subdebate-82-36} #### Government Reports: Cost (Question No. 2794) {: #subdebate-82-36-s0 .speaker-0J4} ##### Mr Ruddock: asked the Minister representing the Minister for Foreign Affairs upon notice: {: type="1" start="1"} 0. With reference to question No. 2591 of the Member for Macarthur, what has been the total cost to the Government of the examination of issues and preparation of reports by the Department of Foreign Affairs, by authorities for which the Minister is responsible, and by ad hoc commissions', committees, task forces, etc., within the Minister's portfolio, since 5 December 1972. 1. What is the cost apportioned to each report referred to in part ( 1 ) of the question No. 2 5 9 1 . {: #subdebate-82-36-s1 .speaker-6U4} ##### Mr Whitlam:
ALP -- The Foreign Minister has provided the following answer to the honourable member's question: >In answer to the honourable member's question I draw his attention to the reply by the Prime Minister to question 2789 (Hansard 5 June, page 3546). {:#subdebate-82-37} #### Government Reports: Costs (Question No. 2795) {: #subdebate-82-37-s0 .speaker-0J4} ##### Mr Ruddock: asked the Minister for Overseas Trade, upon notice: {: type="1" start="1"} 0. With reference to Question No. 2592 of the Member for Macarthur, what has been the total cost to the Government of examination of issues and preparation of reports by his Department, by authorities for which he is responsible, and by ad hoc commissions, committees, task forces, etc, within his portfolio, since 5 December, 1972. 1. What is the cost apportioned to each report referred to in part ( 1 ) of Question No. 2592. {: #subdebate-82-37-s1 .speaker-JAG} ##### Mr Crean:
ALP -- The answer to the honourable member's question is as follows: >I refer the honourable member to the answer which the Prime Minister provided to a similar question, No. 2789, which appeared in weekly edition No. 1 1 of Hansard for the period 2 June to 5 June 1975 (pages 3546/3547). {:#subdebate-82-38} #### Government Reports: Costs (Question No. 2797) {: #subdebate-82-38-s0 .speaker-0J4} ##### Mr Ruddock: asked the Minister for the Media, upon notice: {: type="1" start="1"} 0. With reference to Question No. 2594 of the Member for Macarthur, what has been the total cost to the Government of examination of issues and preparation of reports by his Department, by authorities for which he is responsible, and by ad hoc commissions, committees, task forces, etc., within his portfolio since 5 December 1972. 1. What is the cost apportioned to each report referred to in part ( 1 ) of Question No. 2594. {: #subdebate-82-38-s1 .speaker-JNG} ##### Dr Cass:
ALP -- The answer to the honourable member's questions is as follows: {: type="1" start="1"} 0. and (2) I refer the honourable member to the reply given by the Prime Minister to Question No. 2789, which appeared in Hansard (page 3546) on 5 June 1975. {:#subdebate-82-39} #### Government Reports: Costs (Question No. 2802) {: #subdebate-82-39-s0 .speaker-0J4} ##### Mr Ruddock: asked the Minister for Education, upon notice: {: type="1" start="1"} 0. With reference to Question No. 2599 of the Member for Macarthur, what has been the total cost to the Government of examination of issues and preparation of reports by his Department, by authorities for which he is responsible, and by ad hoc commissions, committees, task forces, etc., within his portfolio, since 5 December 1 972. 1. What is the cost apportioned to each report referred to in part ( 1 ) of Question No. 2599. {: #subdebate-82-39-s1 .speaker-JF7} ##### Mr Beazley:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. and (2)1 refer the honourable member to the Prime Minister's answer to Question No. 2789 (Hansard, 5 June 1975, page 3546/47). {:#subdebate-82-40} #### Government Reports: Costs (Question No. 2803) {: #subdebate-82-40-s0 .speaker-0J4} ##### Mr Ruddock: asked the Minister representing the Special Minister of State, upon notice: {: type="1" start="1"} 0. 1 ) With reference to Question No. 2600 of the Member for Macarthur, what has been the total cost to the Government of examination of issues and preparation of reports by the Department of the Special Minister of State, by authorities for which the Minister is responsible/and by ad hoc commissions, committees, task forces, etc., within the Minister's portfolio, since 5 December 1972. 1. What is the cost apportioned to each report referred to in part ( 1 ) of Question No. 2600. {: #subdebate-82-40-s1 .speaker-ZE4} ##### Mr Lionel Bowen:
ALP -- The Special Minister of State has provided the following answer to the honourable member 's question: {: type="1" start="1"} 0. and (2) See the Prime Minister's answer to Question No. 2789 (Hansard, pages 3546-7). {:#subdebate-82-41} #### Government Reports: Costs (Question No. 2810) {: #subdebate-82-41-s0 .speaker-0J4} ##### Mr Ruddock: asked the Attorney-General, upon notice: {: type="1" start="1"} 0. With reference to Question No. 2607 of the Member for Macarthur, what has been the total cost to the Government of examination of issues and preparation of reports by his Department, by authorities for which he is responsible, and by ad hoc commissions, committees, task forces etc., within his portfolio, since 3 December 1972. 1. What is the cost apportioned to each report referred to in part ( 1 ) of question No. 2607. {: #subdebate-82-41-s1 .speaker-8H7} ##### Mr Enderby:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. 1 ) and (2)1 refer the honourable member to the information provided by the Prime Minister in reply to Question No. 2789 (House of Representatives Hansard 5 June 1975, p. 3546-47). {:#subdebate-82-42} #### Government Reports: Costs (Question No. 2811) {: #subdebate-82-42-s0 .speaker-0J4} ##### Mr Ruddock: asked the Minister representing the Minister for Police and Customs, upon notice: {: type="1" start="1"} 0. With reference to Question No. 2608 of the Member for Macarthur, what has been the total cost to the Government of examination of issues and preparation of reports by the Department of Police and Customs, by authorities for which the Minister is responsible, and by ad hoc commissions, committees, task forces, etc., within the Minister's portfolio, since 5 December 1972. 1. What is the cost apportioned to each report referred to in part ( 1 ) of Question No. 2608. {: #subdebate-82-42-s1 .speaker-8H7} ##### Mr Enderby:
ALP -- The Minister for Police and Customs has provided the following answer to the honourable member's question: {: type="1" start="1"} 0. and (2) I refer the honourable member to the reply given by the Prime Minister to Question No. 2789 which appeared in Hansard (pages 3546-7) on 5 June 1975. {:#subdebate-82-43} #### Priorities Review Staff (Question No. 2827) {: #subdebate-82-43-s0 .speaker-DQF} ##### Mr Snedden: asked the Prime Minister, upon notice: {: type="1" start="1"} 0. 1 ) Was it an initial function of the Priorities Review Staff to submit to the Government at regular intervals strategic reviews of the Government's achievements with regard to its policies and objectives as a whole and in relation to the longer term ordering of these. 1. If so, how many such reviews has the Priorities Review Staff submitted to the Government, and on what dates. 2. Have they been published; if so when; if not, why not. {: #subdebate-82-43-s1 .speaker-6U4} ##### Mr Whitlam:
ALP -- The answer to the right honourable member's question is as follows: {: type="1" start="1"} 0. The terms of reference of the Priorities Review Staff were set out in a statement by the then Special Minister of State, **Senator Willesee,** on 19 August 1973 (Australian Government Digest Volume 1 Number 3, page 1231). Consistent with these terms of reference the Priorities Review Staff engages in a continuous study of a wide range of topics and furnishes advice in a variety of forms ranging from oral briefings to formal reports. 1. and (3) See my answers on 5 June 1975 (Hansard, pages 3543-4). Royal Commission on Australian Government Administration (Question No. 2835) {: #subdebate-82-43-s2 .speaker-DQF} ##### Mr Snedden: asked the Minister representing the Special Minister of State, upon notice: {: type="1" start="1"} 0. Who is the adviser on community relations to the Royal Commission on Australian Government Administration. 1. When was the person appointed. 2. What is the person's past experience. {: #subdebate-82-43-s3 .speaker-ZE4} ##### Mr Lionel Bowen:
ALP -- The Special Minister of State has provided the following answer to the right honourable member's question: {: type="1" start="1"} 0. Mr M. Bourke 1. 17 October 1974. 2. ) **Mr Bourke** was previously Director of Community and Media Relations, Department of Urban and Regional Development. He has had extensive work experience in State and Australian Government Departments and Authorities. He has a background in journalism, community work and academic studies in sociology. {:#subdebate-82-44} #### Schools: High Migrant Enrolment (Question No. 2840) {: #subdebate-82-44-s0 .speaker-DQF} ##### Mr Snedden: asked the Minister for Education, upon notice: {: type="1" start="1"} 0. 1 ) What schools will be investigated under the Joint Enquiry into Schools with High Migration Enrolment which was recently announced by the New South Wales and Victorian Ministers for Education and himself. 1. What is the migrant population at each school as a percentage of the total school population. {: #subdebate-82-44-s1 .speaker-JF7} ##### Mr Beazley:
ALP -- The answer to the right honourable member's question is as follows: {: type="1" start="1"} 0. Twenty-nine government and Catholic primary, secondary and technical schools in New South Wales and Victoria were included in the Inquiry. By agreement with the participating authorities, the individual schools will not be identified. 1. The definition of a 'migrant' pupil varied from school to school. According to the definitions in use, 66.5 per cent of all pupils in these schools were 'migrants'. The proportion of migrant pupils in individual schools ranged from 28.6 per cent to 97.6 per cent. {:#subdebate-82-45} #### Oil Import Costs (Question No. 2878) {: #subdebate-82-45-s0 .speaker-K9L} ##### Mr Garland: asked the Treasurer, upon notice: >With reference to my Question No. 2657 wherein I asked what precisely were the other particular and general factors in respect of which the Government agreed some allowance should be made for the enormous cost in oil import costs when comparing Australia's rate of inflation with that of other OECD countries, and his reply, inter alia, that the Government inherited from its predecessor excessively easy financial conditions which contributed significantly to Australia's inflationary experience during 1973 and 1974, why did not he or the Government immediately take action to prevent this instead of greatly increasing the money supply. {: #subdebate-82-45-s1 .speaker-RK4} ##### Mr Hayden:
ALP -- The answer to the honourable member's question is as follows: >The Government did take action immediately to curb the excessive expansion of the money supply. Within days of assuming office the Government appreciated the $A by 7 per cent and tightened controls on private capital inflow, notably via the introduction of a Variable Deposit Requirement Scheme on borrowings abroad by Australian residents. Those controls were strengthened in February 1973 and the exchange rate was further appreciated by S per cent in September of that year. Domestic monetary policy was also tightened progressively during 1973. The lagged effect of the previous Government's policies were such however, that it was not until 1974 that effective control of monetary aggregates was achieved. {:#subdebate-82-46} #### Australian Brick Industry (Question No. 429) {: #subdebate-82-46-s0 .speaker-DQF} ##### Mr Snedden: asked the Minister for Manufacturing Industry, upon notice: {: type="1" start="1"} 0. How many people are employed in the brick industry in each State. 1. Where are they employed. 2. What has been the total output of bricks from Australian companies in each of the last 10 years. 3. What is the expected demand for bricks in each State in the next S years. 4. What is the expected level of employment in the brick industry in each State in the next 3 years. {: #subdebate-82-46-s1 .speaker-ZE4} ##### Mr Lionel Bowen:
ALP -- The answers to the right honourable member's questions are as follows: {: type="1" start="1"} 0. 1 ) Employment in the 'Clay Bricks and Clay Refractories Industry' (ASIC* Industry Class 2821) in each State in 1972-73 was: Source: Australian Bureau of Statistics- Annual Manufacturing Census, 1972-73. Figures relating to employment provided for questions ( I ) and (2) are for ASIC Industry Class 2821- Clay bricks and clay refractories'. All establishments with a high proportion of their output in these activities (i.e. making clay bricks) are classified to Industry Class 282 1. It should be noted that this industry produces some commodities other than bricks and there would be some clay bricks produced in establishments which are classified to other industry classes. The ASIC does not identify a concrete brick industry. Concrete bricks would be predominantly produced by ASIC industry 2834 'Concrete products (excluding pipes)' and silica lime bricks by ASIC 2843 'Non-metallic mineral products'. These two industries would however cover such a wide range of other products that figures could not be meaningfully attributed to the brick industry. {: type="1" start="3"} 0. Production statistics are shown below. These relate to all establishments engaged in manufacturing bricks as specified under commodity items 472.01, 472.03, 475.21, 475.23, 479.45 and 479.49, irrespective of their ASIC classification. Source: Australian Bureau of Statistics. Figures for 1970-71, 1972-73, 1973-74 are derived from the collection of monthly production of principal manufactured commodities. For the latter year these are preliminary and may be subject to revision. Figures for other years are derived from the Annual Manufacturing Census. (4) and ( 5 ) Official estimates of expected demand and expected levels of employment in the next 5 years are not available. {:#subdebate-82-47} #### Industrial Research and Development Grants (Question No. 1771) {: #subdebate-82-47-s0 .speaker-0J4} ##### Mr Ruddock: asked the Minister for Manufacturing Industry, upon notice: {: type="1" start="1"} 0. What vehicle manufacturers and vehicle component manufacturers have received grants under the Industrial Research and Development Grants Act 1967-1973 during the last 5 financial years. 1. What amount has been granted to each of these manufacturers in each of those years. 2. Which manufacturers have used their grants for road safety related research. 3. On what projects was road safety related research undertaken and what amount was expended on each project. {: #subdebate-82-47-s1 .speaker-ZE4} ##### Mr Lionel Bowen:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. 1 ) and (2) Appendices to the Annual Reports of the Australian Industrial Research and Development Grants Board, which list all companies and the amount of grant received, show that the following firms known to be involved in vehicle and vehicle component manufacture were paid grants during the five financial years up to 30 June 1974. Details indicating the grant years to which these payments relate are also contained in these Appendices. {: type="1" start="3"} 0. and (4) Apart from the question of what is an acceptable definition of road safety related research, the Australian Industrial Research and Development Grants Board is not empowered by the Act to make public information on the detailed nature of particular companies' research and development activities. The Board, in its annual reports published in accordance with Section 38 of the Act, provides all the information on particular companies' research and development activities that it is able to do without prejudicing the legitimate business interests of those companies. {:#subdebate-82-48} #### Perth Airport: International Flights (Question No. 2472) {: #subdebate-82-48-s0 .speaker-K9L} ##### Mr Garland: asked the Minister for Transport, upon notice: {: type="1" start="1"} 0. What (a) incoming and (b) outgoing international flights pass through Perth Airport each week. 1. What are (a) times, (b) flight numbers, (c) types of aircraft where applicable and (d) names of the carriers concerned. {: #subdebate-82-48-s1 .speaker-KDV} ##### Mr Charles Jones:
ALP -- The answer to the honourable member's questions is as follows: {: type="1" start="1"} 0. and (2) On 13 May 1975, you sought details as to international aircraft movements into and out of Perth. The following schedule lists the information you have sought. {:#subdebate-82-49} #### Commissions and Task Forces of Inquiry: Staff Employed (Question No. 2346) {: #subdebate-82-49-s0 .speaker-DQF} ##### Mr Snedden: asked the Prime Minister, upon notice: {: type="1" start="1"} 0. 1 ) Further to the answer to Question No. 1688 in which he provided information about commissions of inquiry or task forces established since 2 December 1972, what is the total number of persons employed within each of the commissions or task forces. 1. What is the total salary bill in connection with each commission or task force for these staff members. {: #subdebate-82-49-s1 .speaker-6U4} ##### Mr Whitlam:
ALP -- The answer to the right honourable member's question is as follows: {: type="1" start="1"} 0. 1 ) and (2 ) The number of persons employed within each commission of inquiry or task force listed in answer to Question No. 1688 (Hansard, 5 December 1974, pages 4760-2) and the total expenditure on salaries is as follows: {:#subdebate-82-50} #### Government Grants (Question No. 2376) {: #subdebate-82-50-s0 .speaker-KVQ} ##### Mr Sullivan:
RIVERINA, NEW SOUTH WALES asked the Treasurer, upon notice: {: type="1" start="1"} 0. 1 ) With reference to expenditure in spheres which do not relate to the ordinary day-to-day running of a Government, what sums have been made available to foreign countries by way of gifts for cultural purposes, e.g. the gift to Ireland for a Chair on Australian history, during the last 12 months. 1. What sums have been made available to foreign countries by way of aid as distinct from assistance for immediate emergencies such as the recent Pakistan earthquake. 2. What sums have been made available to people, such as **Mr Charles** Perkins, for study or literature or similar vague pursuits. 3. What moneys have been given to various cultural organisations in Australia or elsewhere, e.g. for Aboriginal arts, etc. 4. What moneys have been given directly to local government 5. What moneys have been given directly to State instrumentalities and not channelled through the appropriate State Government. {: #subdebate-82-50-s1 .speaker-RK4} ##### Mr Hayden:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. 1 ) The Department of Foreign Affairs has advised that the following sums were made available from that Department's cultural relations appropriation, to foreign countries by way of gifts for cultural purposes during the 12 months ended April 1975: In addition to the above, disbursements during the same period from the South Pacific Cultures Fund (which lies within the Australian Development Assistance Agency's funds but which is administered by the Department of Foreign Affairs) on cultural preservation projects totalled $46,250. In relation to the honourable member's reference to a gift to Ireland for a Chair on Australian history, the Department of Foreign Affairs has advised that this project will begin in the financial year 1 975-76. {: type="1" start="2"} 0. The amount of Australian bilateral assistance to foreign countries, excluding Emergency Food Aid and Disaster Relief, during 1973-74 was $242.4m. The estimated amount for 1974-75 is $287m. 1. The Australia Council has provided the following information. Since its inception in May 1 973, the Aboriginal Arts Board has recommended the following grants for literature projects: {: type="a" start="i"} 0. To communities for literature programs- Oenpelli Community (N.T.) Salary and equipment to enable Aborigines to write and produce books in their own language^ 10,800. Mowanjum Community Council ( W.A.) Salaries for writers to prepare manuscripts in English on local myths, culture and tribal law-$5,950. Milingimbi Community Advancement Association (N.T.) Assistance for community program to write and publish stories in the local language- $9,300. {: type="i" start="ii"} 0. To individual writers- Len Watson (Qld) Living allowance and expenses to write a history of Aboriginal people in Queensland. Grant administered by Arts Council of Australia (Qld) Division-$2,500. Gerry Bostock (N.S.W.) Living allowance and expenses to prepare for publication a manuscript on the visit of the Aboriginal delegation to China. Administered by Arts Council of Australia (Federal Division)-$3,000. Tony Coorey ( N.S.W. ) Living allowance and expenses to write an account of recent history of Aboriginals in Sydney. Grant administered by Arts Council of Australia (Federal Division)-$4,970. Faith Bandler(N.S.W.) Living allowance and travel expenses to write a personal account of the history of indentured labourers in Queensland. Grant administered by Arts Council of Australia (Federal Division)- $3,940. John Newfong (N.S.W. Living allowance and expenses to write a book on the history of Black/White relationships in Australia. Grant administered by National Book Coun cils 10,000. {: type="i" start="iii"} 0. For publication subsidiesNational Book Council (Australia) Production costs for preparation and publication of Aboriginal children's history of Australia-$32,000. Arts Council of Australia (A.C.T. Division) Publication subsidy for autobiography of Charles Perkins-$2,300. Ure Smith Pty Ltd (N.S.W.) Subsidy for additional colour plates for Australian Aboriginal Heritage. (Larger subsidy provided in 1972)-$800. Grants recommended in 1974-75: {: type="a" start="i"} 0. To communities for literature programs- Pukatja Community (S.A.) Salary and equipment for Aboriginal to write stories in Pitjantjatjara- $ 1,365. Davenport Reserve Aboriginal Community Council (S.A.) Salary for Aboriginal co-ordinator and other expenses associated with a program to record and publish traditional Aboriginal cultural material-$9,3O0. Milinginbi Community Inc. (N.T.) Purchase of equipment and other expenses associated with production of books in local language$7,500. Papunya Tula Artists Pty Ltd ( N.T. ) Fees for writers and other expenses associated with development of a program to record traditional legends-$4,500. Oenpelli Community Inc. (N.T.) Further assistance to writers for production of books in their own language- $3,500. Dhanbul Community Association (N.T.) Living allowances for part-time writers and other expenses involved in development of literature program-$4,500. {: type="i" start="ii"} 0. To individual authorsMargaret Tucker (Vic.) Living allowance and expenses for **Mrs Tucker** to write a history of Aboriginals in the Murray Valley. Grant administered by Arts Council of Australia ( Vic. Division)-$2,510. Vince Shepherd (N.S.W.) Purchase of typewriter to prepare manuscript of history of Aboriginals in Armidale area. Grant administered by Crafts Council of Australia-$50. Kevin Gilbert (N.S.W.) Living allowance and travel expenses to write a play, complete autobiography and edit a primer on black consciousness in Australia. Grant administered by Arts Council of Australia (Federal Division)-$7,800. Hugh Edwards (W.A.) Fee and expenses to prepare for publication a manuscript of Aboriginal legends by Joe Nangan of Broome. Grant administered by National Book Council-$5,000. Faith Bandler(N.S.W.) Extension of living allowance to complete history of indentured labourers in Queensland. Grant administered by Arts Council of Australia (Federal Division)-$400. Roderick Hulsbergen (Qld) Travel and other expenses to gather further material for a photographic book on the Torres Strait Islands-$2,000. Hugh Edwards (W.A.) Fee and expenses to write a biography of Albert Barunga of Nowanjum. Grant administered by National Book Council-$7,500. {: type="i" start="iii"} 0. For publication subsidies- Arts Council of Australia . (Qld Division) Production costs of newsletter 'Smoke Signal' produced by the Palm Island Community- $ 100. Crafts Council of Australia ( W.A.) Publication costs of Aboriginal vocabulary compiled by Cecil Lane-$ 100. The Australian Museum (N.S.W.) Publication subsidy for supplement to 'Australian Natural History' on the conservation of Aboriginal rock art-$ 1,070. RigbyPtyLtd(S.A.) Subsidy for book 'Nomads of the Western Desert' by C. P. Mountford. (Royalties are to be devoted to scholarships for Aboriginal writers)- $10,000. Novalit Australia Pty Ltd ( Vic. ) Production subsidy for Kenneth Harrison's biography of Aboriginal musician Harold Blair- $5,000. The following publications have been subsidised by the Aboriginal Arts Board: Aboriginal Rock Art'- supplement to 'Australian Natural History'. Australian Aboriginal Heritage'- part subsidy to lower cost of distribution to Education Department. Publication of the following books is scheduled for 1 975: Joe Nangan 's Dreaming Legends of the North West. Compiled by Hugh Edwards and to be published by Nelson (Australia) Pty Ltd. Legends by Stan Connoly of Yarrabah. To be published by Nelson (Australia) Pty Ltd. Stories from Nowanjum. To be published by Collins. {: type="A" start="C"} 0. P. Mountford. 'Nomads of the Western Desert'. To be published by Rigby Pty Ltd. Black Man, White World. A biography of Harold Blair by Kenneth Harrison. To be published by Novalit. Biaga and Lagi- stories about Aboriginal life on Elcho Island. To be published by Nelson (Australia) Pty Ltd. {: type="1" start="4"} 0. The terms of this part of the question are very wide and it can perhaps best be answered by referring the Honourable Member to, in particular, the Annual Reports of the Australian Council and of the preceding Australian Council for the Arts. Grants of the kind mentioned are given by a number of other Government departments and agencies.as well. See also the answer to question ( 3 ). 1. There are a number of programs under which local government authorities receive Australian Government financial assistance direct Details of these programs, including the amounts paid under them, are set out in Chapter V of the 1974-75 Budget Paper No. 7, 'Payments to or for the States and Local Government Authorities, 1 974-75'. {: type="1" start="6"} 0. I am unaware of any moneys having been paid direct to State instrumentalities except where payments are made for services rendered. However, I would suggest the Honourable Member address this question to the individual Ministers concerned for any programs that he may have particularly in mind. {:#subdebate-82-51} #### Motor Vehicles: Accidents (Question No. 2416) {: #subdebate-82-51-s0 .speaker-K9L} ##### Mr Garland: asked the Minister for Transport, upon notice: {: type="1" start="1"} 0. With reference to question No. 1808 will he now give more recent figures than those provided in the answer to that question. 1. Will he also indicate how much more likely it is to have an accident on a motor cycle than in a motor car or station wagon. 2. Is there any reason to believe the statistics given for Victoria would vary markedly from those in other States or the Commonwealth as a whole. 3. Is it a fact that the number of casualty accidents involving vehicles per million occupant kilometres and the number of occupant casualties per million occupant kilometres whether for all accidents or fatal accidents indicates a fairly constant factor of 1 5 to 1 8 times. 4. Will he provide similar statistics and comparisons for bicycle accidents. {: #subdebate-82-51-s1 .speaker-KDV} ##### Mr Charles Jones:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. 1 ) I am unable to provide more recent information as the last survey of vehicle usage by the Australian Bureau of Statistics was in 1971. 1. In Victoria in 1971, the number of casualty accidents per motorcycle kilometre was approximately seven times higher than the rate for cars and station wagons. 2. 3 ) In 1 97 1 , no other State or Territory published casualty and accident data by type of vehicle. In the absence of this data, it is not possible to comment on the degree to which the Victorian data would be representative of the other States and Territories or Australia as a whole. 3. Based on the data provided in the answer to question No. 1808, the ratio between the motorcycle and car and station wagon casualty and accident rates is as follows: {: type="1" start="5"} 0. It is not possible to provide similar data for bicycle accidents as there is no Australian information on bicycle or cyclist mileages. {:#subdebate-82-52} #### Education: Grants to States (Question No. 2471) {: #subdebate-82-52-s0 .speaker-9W4} ##### Mr Hyde: asked the Minister for Education, upon notice: {: type="1" start="1"} 0. 1 ) Of the moneys appropriated to the States by the States Grants (Technical and Further Education) Act, (a) what moneys have been actually paid to the States, (b) what moneys have actually been spent in technical and further education institutions, (c) in which institutions, and in what amounts, has it been spent, (d) what moneys allocated for 1974-75 remain to be paid to each State and (e) what moneys have been paid to the States but, for one reason or another, have not been spent directly in technical and further education institutions. 1. If any moneys have been retained by the States for administrative or other purposes, for what purposes, and in what amounts, has it been retained. {: #subdebate-82-52-s1 .speaker-JF7} ##### Mr Beazley:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. (a) The following amounts have been paid to the States in 1974-75 under the provisions of the States Grants (Technical and Further Education) Act 1974: {: type="a" start="b"} 0. and (c) The Act does not require the States to submit, in respect of recurrent grants, details of the amounts they intend to expend in each technical and further education institution; nor would it be practicable for them to do so in relation to expenditure on salaries, the largest item of expenditure of recurrent grants. In respect of capital grants, payments are made to the States in connection with projects that have been approved by the Minister. The payments are in respect of actual expenditure made by the States on the approved projects or expenditure which they expect to make within a short time of the payment. The payments which have been made in 1974-75 in relation to major capital works are shown below. They are for State expenditures to complete projects which were commenced with funds provided under the States Grants (Technical Training) Acts; to undertake recently approved projects; and for the planning of projects to be undertaken in the near future. Further particulars of capital payments will be given in the statement to Parliament which the Act requires the Minister to make as soon as practicable after the end of the financial year. {: type="a" start="d"} 0. Capital grants to the States are provided by the Act for the two year period to 30 June 1976 and are not allocated separately for 1974-75. Of the recurrent grants allocated by the Act to each State for 1974-75, the amounts which they had not requested by 30 June 1975 are: These amounts are available to the respective States in 1975-76. {: type="a" start="e"} 0. It is understood that some portion of the amounts paid to the States have been retained by the State Technical Education authorities, in order to employ administrative and planning staff on behalf of the technical and further education institutes and to provide for superannuation, longservice leave and similar entitlements for teachers and other personnel of the institutions. The amounts involved are not known. {: type="1" start="2"} 0. See answer to 1 (e). {:#subdebate-82-53} #### Health: Research into Rheumatological Diseases (Question No. 2620) {: #subdebate-82-53-s0 .speaker-2E4} ##### Mr Lloyd: asked the Minister for Health, upon notice: {: type="1" start="1"} 0. What research is being conducted into rheumatological diseases in Australia, sponsored by the National Health and Medical Research Council and other bodies, and at what annual cost. 1. What problems have been encountered in the establishment of research programs. 2. Does the Council have a strategy for the development of an adequate program. {: #subdebate-82-53-s1 .speaker-KDP} ##### Dr Everingham:
ALP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. to (3) Information available to me covers only research into rheumatological diseases supported by the Australian Government through the National Health and Medical Research Council. I have no information on research expenditure by other bodies such as State Health Commissions, Universities and private industries. The following are projects at present supported through the Council: The Government has approved, in addition, the appointment of **Dr B.** J. Clarris at the Department of Medicine, University of Melbourne, as a N. H. and M. R. C. Research Fellow in Rheumatology. The Council pays **Dr Clarris** ' salary as well as providing him with a non-recurring equipment grant and a maintenance allowance. It must be borne in mind that the Government is only able to encourage and support medical research in particular areas if there is interest within the medical research community. The National Health and Medical Research Council's submission for funds for the Triennium 1 976-78 is being currently considered by the Government and I hope that it will be possible to increase interest in research into rheumatological diseases both in the form of project support and the appointment of more clinical sciences research fellows. {:#subdebate-82-54} #### Tertiary Institutions: Undergraduates (Question No. 2229) {: #subdebate-82-54-s0 .speaker-3V4} ##### Mr Chipp: asked the Minister for Education, upon notice: {: type="1" start="1"} 0. 1 ) How many undergraduate positions were there in Victoria for (a) social workers, (b) occupational therapists, (c) speech therapists and (d) physiotherapists in each of the years 1971, 1972, 1973 and 1974. 1. How many undergraduates are presently training in Victoria in (a) social work, (b) occupational therapy, (c) speech science and (d) physiotherapy. 2. 3 ) What is the estimated output of ( a ) social workers, ( b ) occupational therapists, (c) speech therapists and (d) physiotherapists at the end of 1975. {: #subdebate-82-54-s1 .speaker-JF7} ##### Mr Beazley:
ALP -- The answer to the honourable member's question is as follows: >As none of the Victorian universities provide training for occupational therapists, speech therapists or physiotherapists, sections (b)-(d) of all parts of this question are not applicable to universities in Victoria. > >Enrolments at colleges of advanced education for Prior to 197S the only social work course offered by a Victorian university was a Diploma in Social Studies at the University of Melbourne which could be taken either at the graduate or undergraduate level. This Diploma course is being phased out and will eventually be replaced by a Bachelor course introduced in 1 975. A breakdown of figures by graduate and undergraduate students is available for commencing students for the years 1 97 1 -74, but not for other years of the course. social work, occupational therapy, speech therapy and physiotherapy courses for the period 1971-74 were as follows: {: type="1" start="2"} 0. 1974 figures are the latest available for undergraduates training at Victorian colleges of advanced education (see(l)). In 1975, there were 369 enrolments in social work courses at Victorian universities, as follows: {: type="1" start="3"} 0. Figures are not available for the estimated output of graduates in these courses at Victorian colleges of advanced education. At the end of 1975, 1 10 students are expected to graduate from social work courses at Victorian universities.

Cite as: Australia, House of Representatives, Debates, 19 August 1975, viewed 22 October 2017, <http://historichansard.net/hofreps/1975/19750819_reps_29_hor96/>.