Senate
14 December 1934

14th Parliament · 1st Session



The President (Senator the Hon. P. Lynch) took the chair at 11 a.m., and read, prayers,,

IRISH NATIONALITY ACT.

Senator BROWN.-I trust that I shall not bo misunderstood when I ask the Leader of the Governmentthe following questions: - (1) Etas his attention been called to the passing of the Irish Nationality Act? (2) What will be the position of Irishmen’ in the Empire.?.(3) Will the President of the Senatebecompelled to vacate the chair? (4) Has the Governmentconsidered the possibility of declaring him a prohibited immigrant and imposing uponhim. a languagetest in Gaelic!

Senator SIR GEORGE PEARCE.The. frightful possibilities envisaged in the. honorable senator’s questionshave not hitherto come under the notice of the Government; but, if any change of the nature indicated were to be effected, the Governmentwouldtakethat into.very seriousconsideration.

TARIFF BOARD REPORTS.

Senator McLACHLAN laid on the table reports and recommendations, of the Tariff Board on the following subjects : -

Meters,, Gauges, Regulating and Controlling Devices for rate offlow, pressure, temperature, £c, of Fluids,Gases,&c.

Arsenic.’ “Lightning”fasteners.

Waterproofed Cloth, preparedwith rubber, oil, celluloid ornitro-celluloeo Water- proofed Tape or Textile Strip prepared with rubber, oil, celluloid or nitro-cellu- lore: Leather ‘ Cloth and LeatherCloth Binding prepared with rubber, oil, celluloid or nitro-cellulose; InsulatingTape. proofed with pitch or bitumen.

Pla ted ware; Spoons, Forks, Butter, Fish and Fruit Knives, plated or of mixed metal , - Cutlery, Spoons and Forks, partly or wholly of gold or silver, except when gold ferruled or silver ferruled only.

Toilet Soap.

Dredging ‘and Excavating Machinery.

Dry Batteries and Dry Cells.

PAPERS,

The, following papers were pre sented : r~

AustralianBroadcasting Commission Act -

Second AnnualReportof the. Australian BroadcastingCOmmission,yearended 30th’ June,1934.

Arbitration (Public Service). Act Determination’by ‘the Arbitrator;’ ‘ “No. “36 of 1934- Federated Public Service Assistants Association of Australia: and AmalgamtedPostal Workers Union of Australia.

COMMONWEALTH INDEBTEDNESS IN THE UNITED STATES OF AMERICA.

Senator HARDY.-Can the Minister representing the Treasurer say if any attempt has. been made to convertthe Commonwealth’s New York loanshaving optional conversion clauses, in view of the favorable rate of American currency in relation to sterling?

Senator Sir GEORGE PEARCE. - The matter has been, and is, engaging the attention of the Government. Certain communications have passed between theGovernment and theHigh. Commissioner, and I can assure the honorable senator that the interests of the Commonwealth in the matter are being fully safeguarded.

TASMANIAN SMALL FRUITS INDUSTRY.

Senator GRANT. - Can the Minister’ representing the Minister for Commerce say whether the Government can do anything to relieve the position of the Tasmanian growers of small fruits?

Senator McLACHLAN. - I am aware, but not in the capacity of the Minister representing the Minister for Trade and Customs, tha^ the Department of Commerce ; s at present taking certain steps to see if any experimental work can be engaged in which would be helpful to the berry industry to which I understand the honorable senator has referred.

Senator GRANT. - My question was rightly, I think, addressed to the Minister representing the Minister for Commerce, Certainnegotiations are in progress between the Government and the Small Fruits Board in Tasmania, and as the berriesarepracticallydropping Iimpress upon, the Governmentthe- abo- lute necessity, for doingsomething promptly,

Senator McLACHLAN.- The Minister for Commerce (Dr. Earle Page) interviewed mo this morning- on the subject.

page 1285

AUSTRALIAN WOOL INDUSTRY

Formal Motion for Adjournment

The PRESIDENT (Senator the Hon.. P. J. Lynch). - I have received from SenatorGuthrie an intimation that he desires to move the adjournment of the Senate for the purpose of discussing a definite matter of urgent public importance, namely, “ The position of the wool industry in the Commonwealth.”

Four honorable senators having risen in support of the motion,

Senator GUTHRIE:
Victoria

– I move -

That the Senate at its rising adjourn till to-morrow at 10 a.m.

I appreciate the action of the Government and of honorable senators in giving me this opportunity to speak upon the serious position of the Australian wool industry, which, of course, is our greatest industry- If something cannot be done to improve present prices, the loss to Australia and the people generally will be tremendous. I propose to cite a few figures to illustrate the trend of the market, including the average gross price of the Australian clip at the sea-board. From 1906 to 1916, the average gross sea-board price was 9½d. and from 1920 to 1930 it was 17¼d. Omitting the four years of abnormal prices as are not likely to be realized again. the average price for 30 years was 12¼d. In 1929-30, it was 10½d., in 1930-318.7d., in 1931-32 8½d, and in 1932-33 8½d. Last year, 1933-34, there was a temporary boom, fortunately for Australia; prices reached 16d. a lb., and an additional £20,000,000 was received for the Australian clip, as compared with the previous year. Unfortunately there has been a serious slump during the last eight months. The market has been continually falling and the average from the 1st July to the middle of December has decreased to 9½d. gross, which is back to pre-war prices, and almost down to the dreadful depression prices of a couple of years ago. To arrive at the real price of wool, it is necessary to deduct1d. par lb. to cover the average cost of railage and selling, thus reducing the price of the Australian clip to the producer to 8½d. per lb. A price of 9½d. in Australian currency, or 7¾d. sterling, and 4¾d. per lb. for- nations on the gold standard is deplorable. At 9½d. a lb. gross at the sea-board the clip of 3,000,000 odd bales shows, a definite loss, as that price is actually below the cost of production. In order to realize the. seriousness of the position, and to show how desirable it is to take every possible step to improve the marketing conditions, if is only necessary to point out to honorable senators that the rise of1d. per lb. in the wool market represents over £4,000,000 to Australia. The clip production is approximately 1,000,000,000 lb., which, at1d. per lb., is approximately £4,000,000, It was very difficult for any one to forecast last year’s temporary boom, which came rather late in November, and continued until the late summer. There has now been a decided collapse in the marked. The quotations and . comments which appear ill the press from time to time are misleading to those who are not in the trade. We may read, “Firm wool market “ - meaning firm at only 9d. per lb. - and that wool realized up to20d, when that figure applies only to a few hundred bales of superfine wool from, say, Yass. out of a total of 3,000,000 odd bales. In these circumstances, it is desirable to deal only with averages; the prices realized by small lots of super^ fine wool are totally misleading and would not disclose the real position of the wool industry. What is the cause of the fall? It is difficult to explain. It is not that there is overproduction, asitcan be demonstrated clearly that the number of sheep in the world has not increased to any extent during the last 30 years. The number is only slightly greater than in pre-war days, and the use of wool -has increased owing to changing conditions and fashions in Eastern countries. Thirty years ago, Japan purchased only 2,000 bales of Australian wool, but is now buying 650,000 bales annually. With the increased use of wool in Eastern countries and the competition for world supplies remaining practically normal, it would have been reasonable to expect a higher range of values for this important commodity. The competition of Japan has been one of the most amazing and pleasing factors in the history of the wool industry. The Emperor of Japan desires the whole of the Japanese people to be clothed in wool within a few years, and the tendency of the Japanese people is in that direction. In Japan, wool was used first in the army and navy, but now G5 per cent, of the total population are clothed in wool. A commission of scientists and medical men appointed to investigate the national and hygienic aspects of the matter, reported that wool was the most suitable clothing for mankind. Moreover, the commission reported that, wool being much more helpful to the body, its use would be likely to increase the stature of the Japanese people, and generally be more beneficial than cotton or kapok. The findings of the Japanese commission are of great importance to Australia, showing, as they do, that wool is the most desirable material with which to clothe the body. Further, it stated that while it is possible for the body to breathe through wool, the same is not possible through two or three thicknesses of cotton or kapok. The Emperor of Japan has almost commanded the whole Japanese nation to be clothed in wool. That is one reason why there has been an enormous expansion of our wool trade with the East. Moreover, Australia benefits from its geographical position in relation to Japan, which creates a demand that is not operating in London. As shipments of Australian wool to Japan are handled only once, Japanese orders are concentrated on the Australian market. We have read certain statements, which are almost threats, to the effect that if Australia does not reciprocate to » greater extent in trade matters, the Japanese will buy their wool from South America and South Africa. But it pays Japan to buy its wool here, and Japan is now our second best customer. Its entry into the market, and the purchases of the Australian woollen mills, which take about 300,000 bales annually, are factors which are influencing the market all the time, and assisting to make the Australian wool market the best wool market. The serious position existing to-day has been brought about, at least to some extent, by the fact that whereas Germany used to be Australia’s second best customer for wool, it is now buying practically nothing from us. In the Melbourne Herald of last night appears an excellent article on the wool situation by Mr. J. E. Wardell, one of the world’s leading experts on the wool trade. The writer, in my opinion, gives the reason for the partial collapse of the Australian wool market, and points out how it could be rectified if some trade agreement were made with Germany. The replies which I received yesterday to questions I put to the Government were not very satisfactory from my point of view. If the Government did not have information, regarding a definite trade arrangement that Germany has made with the Argentine Republic to buy wool in South America, I had it, to a certain extent. I had a cablegram sent on Wednesday through a very reliable wool firm and received the following reply: -

Yesterday cabled my principals Amsterdam for quotations from our South American house. They replied : “ Owing to German trade agreement all qualities from sixty-fours down to forty-eights an average of 3d. clean English sterling higher than my yesterday’s Melbourne quotation “.

In mentioning the counts from 64 down to 48, he is referring to fairly strong merinos and fine cross-bred. That 3d. per lb. clean represents on these wools about 2d. per lb. in the grease. This means .that the quotation in the Argentine market to-day is 2d. per lb. higher for greasy wool than for similar wool in the Australian market. If we could get that 2d. per lb., it would mean a rise of nearly £9,000,000 straight away in the value of the Australian clip. Yesterday, when I received from the Minister the replies with which I was not quite satisfied, I had another cablegram sent, and the following is the ‘reply I received as regards South American merinos : -

Cabled Amsterdam who quote Argentine merinos twenty-six and a half English sterling. Better Australian wool costs only twenty.

Those quotes are for clean wool c.i.f. London.

Senator Brown:

– What is the reason?

Senator GUTHRIE:

– The fact that the Argentine Government has just concluded a trade agreement with Germany by which it takes German goods, thus enabling Germany to buy its wool supplies very extensively in Argentina. Those figures are very alarming to me, seeing that the buying limit for similar wools in Melbourne yesterday was 20d., and the same house, buying in the Argentine, quoted 26$d. The cable continues -

Also informed African agreement not yat operating, but to-day’s price in anticipation is about half way between Australian and South American.

South America is therefore getting pence per lb. more for wool owing to this trade agreement than Australia is, whilst South Africa is obtaining a substantial amount more than Australia is on a similar basis, owing to the fact that it is just about to complete a similar trade agreement with Germany.

Senator BRowN:

– I understand that Germany desires to put on us the obligation to take certain quantities of goods from it in order to allow it to establish a credit by means of which it can buy our -wool.

Senator GUTHRIE:

– Yea, the suggestion being that we should buy goods from Germany instead of from America, which will not buy anything from us. I am a great believer in trade within the Empire. I am not advocating preferential trade treatment for Germany except so far as to arrange some credits, because, Germany wants our wool, and as I say, was for years our second best customer. We have a tremendously adverse trade balance with America, due to the fact that we buy from America, but. America will not buy from us. There has been a great outcry with regard to ihe manufacture of woolstra in Germany. This is an artificial product, a blend of wool and wood fibre. A t tempts have been made to belittle the competition of this article, but there is a good deal of truth in what has been said regarding its possibilities, which cannot be brushed lightly aside, although, there may be a certain amount of propaganda regarding it. Germany definitely was for many years Australia’s second best customer for wool, despite the Minister’s answer to the contrary yesterday. The statistics show that in 1933-34 Germany took from Australia 415,031 bales, and’ in 1932-33 387,503 bales. It has always taken between 300,000 and 450,000 bales a year. Those are the quantities entered for direct shipment to Germany, but those in the trade know that last year actually as much as 650,000 bales of our Australian clip went to Germany. This year, owing to Germany not being able to establish credits here, it has practically dropped out of the Australian wool market, only a comparatively few bales having been bought. I shall not read the articles to which I referred, because I think I have covered the subject sufficiently; but its very able writer does explain the whole position, including the trade agreement between Germany and the Argentine Republic, and the pending trade agreement between Germany and South Africa. He also shows the enormous importance of the trade to Australia. The German Consul made a speech on this subject in Sydney recently, and some growers, who do not know vi-ry much about wool - a man may be a very good sheep man and grower without necessarily knowing very much about wool itself - have been inclined to brush it. lightly aside. I have seen woolstra, and can assure honorable senators that it is the best counter to pure wool, that I have ever inspected. It is almost impossible to fault it with the naked eye. Nobody suggests that, in the long run, it would be as healthy or wear as well as wool; but, if a country cannot get the necessary finance to buy the wool it wants, it must put up with the next best thing. If they are driven into a corner, people will wear n substitute such as woolstra. If the woolstra mills are developed to any great extent, we may never get back the German trade in full. We cannot afford to lose, in our wool market, the competition of any country. Germany’s entry into the South American and South African markets has been most beneficial to those countries, seeing that they arc getting pence per lb. more for their wool than we are getting for ours. As I have already said, a rise of Id. per lb. in the wool market, which could easily be brought about if wo fixed up a trade arrangement, would mean over £4,000,000 a year to Australia, and a rise of 2d. per lb. would mean nearly £9,000,000. Germany is pretty nearly starving for wool to-day, and that country has the largest woollen mills in the world. In every way it would bo an advantage to us to retain Germany as a customer.

Senator Brown:

– We should have to take some good3 from Germany in return.

Senator GUTHRIE:

– That is so, but wo are taking large quantities of goods from America now, although America will not reciprocate. As a patriotic Australian, I suggest that we could arrange to take a substantial proportion of those goods from Germany.

Senator Brown:

– We are paying for those goods in some way, even if we are not paying America directly for them in the form of our own products.

Senator GUTHRIE:

– The honorable senator is quite right. We could make 801110 gesture towards Germany by arranging to take from it some of those goods which now come from America. I am not sufficiently expert to say what those should be, but I should think they could include motor cars and some electrical and other machinery which we are buying from countries that are not within the British Empire. If Germany could establish credits here, it would, undoubtedly, immediately come into our wool market, and lift it, as I have shown by the cablegrams which came from an international house, whose knowledge and reputation are beyond dispute. In their letters to me, the principals say that they realize our policy, and do not expect for a moment that, if Germany bought £6,000,000 worth of wool here, we would buy £6,000,000 worth of goods from Germany in return. They are, however, of the opinion that if we began by buying German goods to the value of £1,000,000 or £2,000,000, Germany would immediately come into our wool market. I need not labour the matter further, except to emphasize that there is some clanger of the development of woolstra and that we as a nation are definitely suffering from the partial collapse of our wool market. An average gross seaboard price of 9 Jd. is terribly low, and simply not payable. If we can assure to Australia the introduction into our wool market of the maximum buying strength available in the world, it is our duty to take every possible step in that direction.

Senator McLACHLAN:
Postmaster-General · SOUTH AUSTRALIA · NAT

– It is always interesting to listen to Senator Guthrie on the subject of wool, and it is a relief to me to hear something that I had in mind confirmed by 60 great an authority, namely, that the statistical position of wool in the world, from the producers’ point of view, is entirely satisfactory. After all is said and done, in the ultimate analysis the statistical position of wool is what will count. Before dealing with the minor aspects of the Argentine arrangement to which the honorable senator has referred, I should like to point out that wool is a world commodity with a world price, and a world market, and insofar as Germany has relieved the markets of the class of wool supplied by Argentina, 3o far is competition removed on the world’s markets for a corresponding class of production sent from this or other countries. The honorable senator has also reassured us regarding the position of woolstra. I have a decided conviction that neither wéolstra nor any other synthetic material, which we have been told for years is going to take the place of wool, will succeed in doing so, because it is impossible to reproduce by any chemical or other means the equivalent of what is grown by the living animal. We take comfort in that fact at all events. I have seen something of these attempts to terrify, as it were, the wool industry of this country. I agree that it would help the industry if we had more competition for our wool in the markets of the world. But only a few months ago, just before Mr. Latham retired, we were definitely assured through the ConsulGeneral for Germany that it was impossible for that country to buy wool in this country as it could not establish the necessary credits. Those familiar with the circumstances of sales made last year are aware of the manipulation that took place and the collosal fortunes that were made by certain interests through selling to Germany wool that had been purchased in Australia. The Government has to proceed warily in a matter of this kind, although I realize the force of Senator Guthrie’s contention. He was good enough to supply me yesterday with a copy of a cablegram he had received, pointing out that clean Argentine crossbred wool was bringing in English currency on the London market 3d. per lb. more than the Australian product. Having regard to the fact that no wool can be got into Germany, I cannot understand a prudent German buyer going to Argentina and paying this enhanced price, which is practically 40 per cent, above the price of Australian wool.

Senator Guthrie:

– That price is for clean wool, not greasy, and would be about from 15 to 20 per cent, above the Australian price.

Senator McLACHLAN:
SOUTH AUSTRALIA · NAT

– We are asked to believe that a keen buyer of wool gave that amount more for Argentine wool than for the Australian article. The explanation offered for this is that Germany, having no credits in Australia, wants to sell goods to Australia, and so establish credits and engage in a system of barter. That is exactly what is happening in Argentina. We have no criterion by which to judge the real prices unless we know what commodities Germany is sending to Argentina in exchange for wool and the prices at which they are being sold. Apparently the pricE mentioned for clean crossbred wool is fictitious. This is an aspect which must be considered seriously. In some correspondence which Senator Guthrie handed to rae it is pointed out that prices of wool resulting from trade with Germany are now higher in South America and South Africa than those ruling for Australian wool, and that the buying has been done on the barter principle. The writers rightly suppose that the barter system would be a stumbling block in Australia; moreover that system makes impossible a reliable comparison of the prices being realized for wool in the different producing countries. I am aware that the buying of wool by Germany in this country is at a low ebb at the moment-, nevertheless, a certain amount of buying is going on. Apart from the operations of the large wool-broking firms buying is being done on sheep properties in outlying districts in Australia. For whom or for what purpose this wool is being bought I do not know. The wool problem has caused the Government much anxiety. It is solicitous for the welfare of our fore- moat industry, but is not going to allow it to be. used by certain interests, supported by some of our own people, as a lever to put foreign goods on the Australian market or compel the Government to take certain action. It is becoming a regular practice for those interested in a particular trade to make certain representations and threats in order te bring about a state of affairs that will be more to their advantage. - T have in mind one country which threatened us in regard to the export of certain of our products. We found that if these interests had even suggested that they would stop manufacturing the products produced from our raw material they would have been greeted with a howl of protest from the people of their own country. Any proposal, which contains a suggestion of bartering, must be examined with the greatest care. Barter prices must not be confused with true values. A few days ago in the House of Representatives, Sir Henry Gullett stated that the Consul-General for Germany had visited Canberra and had discussed with him trade matters. Sir Henry explained that he had asked this gentleman to submit certain proposals outlining specific items in respect of which he desired to negotiate; the German representative undertook to cable to his government for such information, but I have just been informed by Sir Henry that, so far, no reply has been received. I repeat that the Government is watching this problem very carefully. It is constantly in touch with the Australian Wool Council, of which Sir Graham Waddell was, until recently, chairman. The Government will spare no pains to help the industry, but before any measures are adopted in this direction, it will have to be abundantly satisfied that such measures will prove really helpful. The honorable senator probably knows sufficient of the personnel of the Government to realize that this matter will be seriously handled in the best interests of the industry.

I desire to touch upon another feature of this matter which has been discussed by the Government both in and out of Cabinet; that is the inability of the treasury officials here to ascertain the exact rate of exchange between Argentina and other countries. Although they have consulted with authorities in London and the Commonwealth Bank, treasury officials find themselves unable to accept statements which have been made regarding the Argentine exchange rate. Apparently Argentina has one rate. vis a vis one country, and a different rate vis a vis another country. If this system of international bartering is engaged in to any extent in other countries, there will probably be no reliable rate of exchange on which international trade can be based. I. intended to point this out with some vigour, butI am restrained by the standing of Senator Guthrie’s friends, who advised him that the price which Germany is paying for Argentine wool is, in English currency, 3d. per lb. higher than the price being received for Australian wool. Steps will be taken to have this calculation checked. The Government, I repeat, is watching the trade position of wool, and is also negotiating with Germany. I can assure honorable senators that if any reasonnhlo proposition is submitted, with proper safeguards, the Government will not hesitate to give effect to it in the best interests of the industry, and of the people of Australia generally. We regret that there is nothing definite before us at the moment. South Africa, I understand, has not come to an agreement with Germany. The answers given to the questions asked by the honorable senator correctly stated the position at the time when those answers were given. Since that: date the Consul-General for Germany has visited Canberra and conferred with Sir Henry Gullett.

Senator BROWN:
Queensland

– I commend Senator Guthrie for having brought this matter before the Senate. When there is the time to spare matters of importance, other than legislative proposals, should be discussed in this chamber with a view to finding a solution of our economic problems. Unfortunately, some honorable senators are not very interested in matters of general concern. They make their appearance only when a matter which is of particular interest to their constituents is being discussed. The wool industry, however, is of vital concern to the whole of Australia. Every honorable senator should try to understand the position so that he can bring pressure to bear on the Government to introduce legislation to improve conditions in this country. It is the duty of Australia to find other markets for its produce, for the greater competition will ensure better returns to our producers. As Senator Guthrie pointed out, Australia’s exports of wool have remained practically stationary for a number of years. But the quantity of goods that we are able to purchase in exchange for that wool has diminished, and it would appear that in the near future we shall receive still smaller supplies of foreign commodities in exchange for our wool. The present system of trading is a combination of the systems of barter and finance. On the system of barter has been superimposed the financial system, which acts as a fetter, in that it prevents the free passage of goods from country to country that is possible under a system of barter. There is nothing wrong in principle with the exchange of goods for goods, known as barter. When commodity gold had a certain value, gold was exchanged for other commodities. There was then an exchange of value for value. But that is not so to-day. Instead, we have a highly developed system of finance, known as the credit system, the effect of which is to restrict the exchange of commodities. We have reached such, a stage in our economic development that modern finance is unable to perform the work that it should do. We therefore have the unsatisfactory position of our country producing, in abundance, all kinds of commodities, including wool, and capable of producing them in even greater abundance, but unable to exchange themfor other commodities. Consequently, our people starve, and the wool-growers suffer because they cannot meet their commitments. Senator Guthrie admits that he cannot give the details of any system by which this problem can be solved. He said that if Germany were allowed to send certain quantities of goods to Australia in exchange for Australian wool, the situation might be remedied. I submit that the trouble would not be solved in that way. The Senate might argue until the crack of doom, and make sentimental requests to other countries to accept our commodities, but they would be unable to do so because of the existing financial system. The gentleman who wrote to Senator Guthrie said -

This buying, of course, has been done on the barter principle, and I suppose that this would be a great stumbling block here, for one can hardly visualize the average Australian with his present outlook on life, being willing to accept German goods in payment for wool.

I do not quite agree with that statement. If we understood the position, we would be willing to accept German goods for goods which we produce in abundance, and in that way we would raise the standard of living in this country. Under the present financial system, however, barter cannot bo carried out. The stumbling block is finance. We are told that, in consequence of Germany’s lost export trade its importations have decreased and its standard of living has fallen. Newspaper reports state that recently Hitler, Goering and Goebbels stood in the streets of Berlin collecting money to assist the poor of Germany. The present unhappy state of that country is the outcome of the existing financial system. For many years, Germany was able to carry on only by means of excessive loans raised in the United States of America. Germany could not meet its reparation obligations without borrowing more money from the United States of Amenca. It borrowed money to repay money previously borrowed. In the Saturday Evening Post, about two years ago, Garret Garrett, one of America’s most brilliant writers, pointed out the stupidity of America assisting Germany to reach a high economic plane, thereby becoming a serious competitor. He went on to say that in order to lend to Germany millions of pounds, American workers produced goods of various kinds and gave them to Germany, and that Germany was not able to reciprocate. He pointed out, moreover, that under the financial system of to-day Americans had practically -to make a gift to Germany, because that country would never repay the money lent to it; that American producers, including the workers, had actually given their services to Germany, and that by accepting the gift, Germany had built up the finest industrial machine in the world, whereas in the United States of America 10,000,000 workers were starving in the midst of plenty. That incongruous position is the outcome of existing financial arrangements, by which one country starves its own people to build up another nation. If that has been the result of the present system of finance in other parts of the world, how can we in Australia hope to remedy our position under the same system? So long as we continue under that system, the community will continue to starve in order that the books of the banks may be balanced. The sooner we get down to bedrock the better. The financial system under which we live is making it increasingly difficult to exchange commodities, and, in order to relieve the situation, legislation, which can only be described as puerile, is placed on the statute-books of this and other countries. In Australia, it is urged that the introduction of potatoes from Tasmania to the mainland should be disallowed in order that they may be obtained from New Zealand, which country would then buy our citrus fruits. If we do that, we shall make it impossible for Tasmania to buy goods produced on the mainland. Senator Guthrie spoke of Australia’s adverse trade balance with the United States of America, and urged that we should buy smaller quantities of goods from that country, and obtain the balance of our requirements from Germany. If we buy from the United States of America goods to the value of ten, twenty or thirty million pounds, we must produce and sell goods of equal value to pay for them. How shall we make things better by transferring our purchasing from America to Germany? From time to time, we hear a good deal about Empire development. When not long ago, Australia won in New Zealand a market which previously was held by Great Britain, I said that by taking business from Great Britain we should not help the Empire. The trouble is that we do not get down to fundamentals. A study of world conditions shows that, under our present financial system, it is becoming more and mora difficult to exchange the commodities produced in one country for those of other countries. That system has resulted in the world’s purchasing power being reduced from year to year, and almost from day to day.

Despite great efforts to prevent it, the unemployment problem of the United States of America is greater to-day than ever before, there being 10,000,000 persons out of work in that great country.

The PRESIDENT (Senator the Hon. P. J. Lynch). - The honorable senator’s time has expired.

Senator FOLL:
Queensland

.- The Senate and the people generally are indebted to Senator Guthrie for having initiated a discussion this morning with reference to the position of the Australian wool industry. For some years I have been struck with the trend of prices at wool sales, and I have no doubt that Senator Guthrie, having a wide experience in the industry, has also been concorned at the lack, in recent years, of legitimate buying competition at the wool auctions. I am given to understand that, prior to each sale, individual buyers make their selection of the lots offering, and agree among themselves not to compote against each other. This lotsplitting has had the effect of destroying effective competition, and the result has been abnormally low prices for growers.

Senator Guthrie:

– Last year prices ro3e very appreciably.

Senator FOLL:

– That was because of the great shortage of wool offering. Last year the production in Australia was very much below the average. I mention this aspect of the wool industry, because it seems to me that wool production is the one industry in Australia which could be so organized internationally as to secure for growers a satisfactory minimum prices for the different grades. Other primary commodities are grown so universally that it would be impossible for those engaged in their production to organize with any hope of success. But the production of the different types of wool is restricted by conditions of soil and climate, and as Australia i3 admirably suited to the growth of the best grades of fine wool, the organization of the industry on an international basis should be an attractive proposal for growers, because, as I have explained, it would ensure satisfactory minimum prices for the various grades. Not long ago nearly every one in this country was deeply concerned at the possibility of dire disaster overtaking the wool industry because of the disorganization of the overseas markets. Some people even advocated that, in order to dispose of surplus stock, a proportion of the Australian clip should he thrown into the sca; others suggested that it should be burned. Fortunately, conditions overseas improved, and the world surplus having been disposed of, prices rose to a more satisfactory level. No one will deny that there is not now such evidence of effective competition for the various types of wool offering at Australian sales. As I have explained, this is due to the fact that several years ago prices reached such a high level that the buying organizations came together, and by this arrangement to split lots, brought about an all-round reduction of prices. Whenever I addressed election meetings in Queensland I advocated the organization of the wool industry on an international basis, and emphasized that wool-growers,1 unlike other primary producers, were in a favorable position to safeguard their industry. I hope that steps will soon be taken to adopt the course which I have suggested.

Senator DUNCAN-HUGHES:
South Australia

.- Senator Foll has advised that the wool industry should be organized so as to improve the lot of individual growers. It will perhaps be sufficient if, in reply, I tell the honorable gentleman that this is the only industry in Australia which is thoroughly organized, and that, as a consequence, there is not a great carry-over of unsold wool from season to season, so that there is now some possibility of growers emerging from troubles which are not due to the fault of those engaged in the industry.

Senator Foll:

– I had in mind the organization of the industry on an international basis.

Senator DUNCAN-HUGHES:

– It is organized in Australia as between the growers and wool-selling brokers to an extent which, I venture to say, is not approached by any other Australian industry. Therefore, all this talk about the need for the industry to organize has no real application. With regard to the remarks of Senator Brown, I can only say that whenever we find ourselves in trouble, economically or otherwise, the honorable gentleman feels called upon to tell us that the existing economic system has broken down.

Senator Collings:

– Does not the honorable senator believe that it has broken down’?

Senator DUNCAN-HUGHES:

– I do not. I sincerely believe that the British Empire as a whole is a much better position, financially and economically, than any other country. If Senator Browncan point to any country which is moving more surely, even if slowly, out of its troubles than is the British Empire as a whole, I should like to hear about ii. The honorable senator apparently believes, quite honestly, that his method of dealing with such troubles as beset the various countries, would, if accepted, . set the whole world right. His argument is that the capitalistic system has broken down, and that if only we will turn to him, and follow his advice everything will be straightened out.

Senator BROWN:

– -Be fair.

Senator DUNCAN-HUGHES:

– That, at all events, is how I interpret the honorable senator’s remarks. I do not doubt for a moment that he genuinely believes that he has to his hand the one and only cure for the world’s economic and financial ilk. Some years ago Sydney Webb wrote a book in which he outlined a new Constitution for Great Britain. Mr. Sydney Webb, who has since been made a peer, is a man of undoubted ability, but we must, I think, admit that Lord Morley was right in his continent that it was an impertinence on the part of any man to think that by his unaided efforts, he could produce a social, political, and financial system to supplant one which represents the combined thought of tens of thousands of the ablest men which the Mother Country has produced. None of us. not even Mr. Keynes, could justifiably believe that his view should prevail over the combined thought of the world in respect of any particular matter.

Let me recapitulate briefly the position of the wool industry. Senator Brown has argued that there is no reason why we should not take German goods in return for Australian goods. Why then does he object to the Government’s proposal to grant additional concessions to Fiji, the effect of which will he to make the Australian market available for a greater quantity of bananas from Fiji in return for goods which we send to that country? The two cases arc absolutely analagous. Last night, when discussing the Government’s proposal relating to our . trade agreement with Fiji, he was uncompromisingly hostile to the freer importalion of Fijian bananas. To-day he puts the contrary view in his survey of world economic problems.

Senator Collings:

– -The honorable gentleman did not understand Senator Brown’s argument.

Sena tor DUNC AN-HUGHES. -I listened with the greatest, care to all that the honorable senator said, and I am quite certain that I did not misunderstand him. But let me finish what I had set out to say with regard to the wool position. Prices have come back to depression levels. The fact that a relatively small proportion of the total production is sold within the British Empire complicates the situation. This industry has never asked for governmental assistance. Indeed, those engaged in it have been insistent that its interests will be best served by freedom from interference, and relief from crippling taxation. Nevertheless, it has had placed on it, through the tariff largely, heavier burdens than have been imposed upon secondary industries. There are two ways in which it may he assisted to emerge from its present difficulties. The first method is by remission of taxation, and the second is by a lowering of tariff charges. I know that the land tax, which is really a tax on capital, affects two people living in our cities for every one living in the country, but if that impost be further reduced, the wool industry will have a better chance to carry on. The reduction of the land tax by 50 per cent, is a welcome concession, but is not sufficient to meet the needs of the industry. A reduction of the tariff is the second avenue of relief. As our wool-growers have to accept world parity for their product they feel that it is not fair that they should be required to produce in a market, which, owing to the high level of the tariff, is one of the most expensive. The

Government lias to a minor extent lowered the tariff on many items -which affect our primary industries. It has, as I have admitted, reduced the land tax by one-half and has also so amended the act as to provide some relief in respect of cases of hardship. I am not at all enthusiastic about that phase of its policy. The wool-grower should not be obliged or entitled to claim relief from taxation on the ground that it is imposing a hardship on him.

In the meantime, our difficulties are becoming greater owing to the threats by other countries of quotas and embargos on the sale of our wool. The attitude of the German Government has already been mentioned and it will be within the memory of those who are interested in this industry that recently Italy, which before this year purchased approximately £4,000,000 worth of Australian wool, has intimated that in future its purchase will be about £2,000,000 per annum less. The trouble with the Lancashire cotton spinners, due to some recent alteration of the duties on cotton in the interests of the Australian cotton industry, may quite easily spread to Yorkshire, and although it is not likely to prevent Bradford from taking a reasonable quantity of our wool, it is not to be expected that Bradford will be anxious to increase its orders on Australia’s account. Then there is trouble looming up with Japan in connexion with our tariff policy. These four instances indicate the general effect on other countries of our economic policy as expressed largely through the tariff. The tendency of other countries is to buy less from Australia, particularly of wool, because we are not buying sufficient quantities of goods from them.

Senator Crawford:

– “What the honorable senator is saying is really an invitation to the governments of other countries to retaliate.

Senator DUNCAN-HUGHES:

– I am looking at the facts. ‘No one can deny that our tariff policy is having the effect which I have stated.

Senator Crawford:

– It differs in no respect from the tariff policies of France, Japan and other countries.

Senator DUNCAN-HUGHES:

– Perhaps it does not, but we should remember that we are dependent on selling our wool and other primary products overseas. Our attitude in stressing unessentials in tariff matters was bound to land us in our present position. Now we cannot readily market abroad essential commodities upon the sale of which we depend for our financial stability. It is clear to every one to-day, and it must have been for years past to any one with even half an eye, that the time will eventually arrive when those countries now purchasing our wool will say that they do not intend to purchase further supplies. What will we do a’bout it then? That is a possibility which confronts the Government. The wool-growers, as Senator Guthrie said, have carried on with a minimum of governmental assistance, while those engaged in secondary production, and in almost every other form of primary production have received governmental assistance in different forms. Those engaged in the wool industry, which is the key industry, have received practically no assistance, and by degrees the straws are accumulating to such an extent that the camel’s back will inevitably be broken. What shall we do then? I admit freely that Nationalist governments have never been so harsh on the wool industry as have Labour governments, which have looked upon it from the view-point of taxation alone. Labour governments have never encouraged it in any way. For years we have asked for remissions of taxes or substantial reductions of customs duties. Taxes have been reduced slightly, and customs duties have been reduced only to a very limited extent. When we ask the present Government what it intends to do, we are informed that it proposes to enter into trade agreements. Personally, I think that that is one way out of the difficulty, but whatever action is taken must be taken rapidly. Prices are now back to depression level, our markets are slipping from us month by month, and the matter is one that will not brook delay. As is said in legal parlance, time is of the essence of the contract. I am not particularly concerned at the moment with the possible competition of the new

German substitute, woolstra. Some suggest that unless an arrangement is made with Germany, that country will find the necessary money to produce a product of such quality and price, and in such quantities that it will compete seriously with Australian wool. My personal view is that if it be possible to produce woolstra effectively and to use it to defeat the use of wool, Germany will not lack the capital to do so. The making of an agreement with Australia will not delay the development of this new industry. If woolstra can compete successfully against the natural product, the necessary capital will be forthcoming in Germany, and if not there, in some other country. I have recapitulated to some extent the facts of ibis matter, because I think that the Minister was not inclined to face up to them. This essential, industry, which assists the whole of Australia, is now facing serious difficulties, and apart from minor alleviations such as the appointments of royal commissions, very little has been done to assist it.

Senator J V MACDONALD:
QUEENSLAND · ALP; FLP from 1932

– To discuss effectively a subject of such importance a good deal of investigation and research would be required, and instead of endeavouring to come to grips with it in two hours, we should occupy two or three days. I object to Senator Duncan-Hughes saying nhat Labour governments have not done anything to assist the wool industry.

Senator Duncan-Hughes:

– What have they done!

Senator J V MACDONALD:
QUEENSLAND · ALP; FLP from 1932

– The honorable senator has suggested that Labour governments have been opposed to the wool industry.

Senator DUNCAN-HUGHES:

– Will the honorable senator say what they have done?

Senator J V MACDONALD:
QUEENSLAND · ALP; FLP from 1932

– The honorable senator suggests that no government has helped that industry.

Senator Duncan-Hughes:

– I made a distinction between the two parties.

Senator J V MACDONALD:
QUEENSLAND · ALP; FLP from 1932

Senator E. B. Johnston directed attention to our tariff policy; but the present Government was elected because it affirmed the principle of effective protection for Australia. I do not think that any Queensland grazier would say that the Labour governments in that State have neglected the wool industry, although in prosperous periods they have advocated that the workers should get a fair share of the substantial returns received by the wool-growers. It is ridiculous for the honorable senator to suggest that Labour governments have failed to recognize the importance of the wool industry to Australia. The main reason why it has not had assistance in the past is because it has not needed it. Prior to the depression, the prices received by the woolgrowers were too high to ensure the safety of the industry, and during the period of inflated prices, many made enormous fortunes. For 30 years prior to the depression, the wool industry was regarded as the one great industry which could be depended upon because of its grip upon world trade. It is well to remember that high prices have led the wool industry into serious difficulties.

Senator McLACHLAN:
SOUTH AUSTRALIA · NAT

– When prices are high, the users of wool immediately seek substitutes.

Senator J V MACDONALD:
QUEENSLAND · ALP; FLP from 1932

– Tes, and the use of cotton, silk, and artificial products increased. There are few of us who know what is done behind the scenes when wool is being marketed. Sales held in Melbourne, Sydney, or Brisbane are attended by buyers from all over the world, and although we read that there is keen competition, the buyers, realizing that it would be foolish to cut each other’s throats, put their heads together and arrange to bid for only certain lots, thus keeping down prices.

Senator McLACHLAN:
SOUTH AUSTRALIA · NAT

– They do when there is an over-supply; but that is not so to-day.

Senator J V MACDONALD:
QUEENSLAND · ALP; FLP from 1932

– .The alleged competition has to be watched, and the operations of the industry scrutinized carefully. I consider that it needs reorganizing on the lines of the sugar industry and the butter industry. As a representative of the third generation of a family of wool producers, and having at one time had an interest in a few hundred sheep, I naturally take an interest in the production of wool. The industry appears at present to be in a chaotic condition. Only recently letters were despatched to the members of this

Parliament by a graziers’ organization atRoma, which wanted to know what we, as representatives of the people, propose to do to assist the industry. I do not profess to have the highly technical knowledge of Senator Guthrie on the handling and marketing of wool or to be as well acquainted with its production as are certain honorable senators who own sheep stations; but it is safe to say that there is an enormous number of persons standing between the wool-grower and the actual user. I do not suppose that here is any other Australian industry in which so many middlemen operate as in the wool industry. I believe that every government has endeavoured to assist the woolgrowers from time to time. Fortunately for Australia, until quite recently no assistance of any great moment was required. Still the governments of Australia have certainly helped this industry in regard to railway freights, the combating of diseases in sheep, and in many other ways which at the moment do not spring to the mind. Among those who have been getting “ a cut “ out of the wool industry are big mercantile firms and financial institutions, the shipping people, and the millers in Bradford and Japan; by the time they are satisfied not much is left for the actual grower.

Senator Guthrie:

– There is less “ cut “ off it than in the case of any other commodity. The cost of freight and marketing averages1d. per lb., and a tremendous amount of expert service is given in return for that. We, as wool-growers, do not growl at the charges.

Senator J V MACDONALD:
QUEENSLAND · ALP; FLP from 1932

– Numbers of growers in Queensland have done so. There seem to be more people standing between the grower and the user in the wool industry than in any other. So far as the marketing of wool is concerned, probably very largely because of the tremendous prosperity the industry in Australia has enjoyed, it is the least organized of all our industries. The big financial institutions have a great grip on it. It has been stated on a number of occasions that, if the woolgrower received that measure of protection that he should get, he would be in a safe position, but the fault in that regard does not lie with any of the governments, least of all with the Labour governments, although Senator DuncanHughes tried to fix the blame on them. It is certainly not the governments, Labour or otherwise, that are responsible for the present perilous condition of the industry. I think something better than 9d. should be got for wool very soon; but, directly a relatively high price, such as lad., is passed, other dangers have to be faced; that is, other articles are brought into use, and synthetic products like woolstra are developed. My advice to the people in Roma, who wrote to members of Parliament, was that those in the industry should do a great deal more for themselves, instead of depending on Parliament. All that we Labour senators could do to change the policy of a great industry like this would not amount to much. I tell Senator Duncan-Hughes and Senator Guthrie that the industry wants better organization, and national organization at that. If the time comes that Senator Duncan-Hughes predicts, when the wool industry is down and out, then proper organization will be undertaken, and will bring success if it be not too late.

Motion - by leave - withdrawn .

page 1296

QUESTION

WIRELESS BROADCASTING

Kelso Regional Station

Senator McLACHLAN:
SOUTH AUSTRALIA · NAT

– On the 15th November, Senator Sampson asked the following questions, upon notice: -

  1. Who was responsible for the plans and specifications of the staff dwelling house now being erected for the wireless broadcasting station at Kelso, Tasmania?
  2. On what grounds are 5-in x 5-in. peppermint posts being used to support the building instead of concrete?
  3. Is it not a fact that some 70 chains of wire fencing is being erected, with 6-in. x 4-in. concrete posts, manufactured on the job?
  4. What is the difference in cost between -

    1. 5-in. x 5-in. peppermint posts ;
    2. 5-in. x 5-in. concrete posts?
  5. What is the estimated life of the 5-in. x 5-in. peppermint piles under the dwelling?
  6. What is the estimated life of the same in concrete?
  7. The Parliamentary Public Works Committee having ceased to function, what examination, if any, is exercised with regard to sites, plans, &c, and by whom?

I am now in a position to reply as follows : -

  1. The working drawings and specifications in respect of this building were prepared in the office of the Works Director for victoria.
  2. It is the usual practice to use wooden stumps for timber buildings.. The specification in respect of this particular building provided for jarrah stumps. It was, however, considered desirable to use Tasmanian timber, and as peppermint, which, with the. exception of T.ioinanian blue gum which was not obtainable in the district, has a longerlife than any other Tasmanian hardwood, that timber was decided upon. The building is not being erected on swampy ground, the site being some 4 feet higher than the surrounding area,
  3. Yes. Concrete fence posts are being used because a considerable portion of the fence traverses swampy ground.
  4. Approximately1s. 6d. per 4-foot post.
  5. The life of peppermint telegraph poles, which are exposed to all weather, is approximately eighteen years. The life of the same timber used for foundation posts, which are in a sheltered position, would naturally be considerably iongor.
  6. Indefinite.
  7. Plans, &c., in respect of all buildings prepared by the technical officers of the Department of the Interior, are subject to review by the departments for which such buildings are erected. The sites upon which buildings are erected are also subject to the approval of the departmentconcerned.

page 1297

QUESTION

WHEAT GROWERS RELIEF ACT

Senator E B JOHNSTON:
WESTERN AUSTRALIA

asked the Minister representing- the Prime Minister, upon notice -

With reference to reply to question asked by Senator Johnston on the 12th instant in which it was stated that 3s. per acre had been paid under the Wheat Growers Relief Apt 1933 to wheat-growers with taxable incomes in Queensland, and 5s.6d. per acre to wheatgrowers without taxable incomes in Queensland, and6s.10d. per acre to wheat-growers in Tasmania -

Why has such discrimination been shown in favour of wheat-growers in these States as compared with other States?

How is the payment of 3s. per acre to all wheat-growers with taxable incomes in Queensland reconciled with the refusal of any payment to wheat-growers with taxable incomes in other States’?

Will the Government find the necessary money to give wheat-growers inother States the same assistance and relief as granted in Tasmania and Queensland?

If -not, why not?

How are the payments mentioned reconciled with the ‘grant of . 3s, 6d-per acre to necessitous wheat-growers in “Western Australia, and with the provision in the federal Constitution which prohibits discrimination between the . States?

Senator McLACHLAN:
SOUTH AUSTRALIA · NAT

—The answers to the honorable senator’s questions are as follow

  1. The total amount made available to each State was based upon the acreage sown ‘to wheat in that State relative to total Common wealth acreage and. the rate atwhich each growerwas paid was dependentupon the acreage within each State in respect of which assistance was granted. These, of course - owing to Commonwealth discriminatory clauses^would. vary.
  2. There isnoreason to believe thatclaims received from Queensland growers were not dealt with in accordance with section 61x of the Wheat Growers Relief Act 1933. Payments under section6(B) were made at the discretion of the State authority,
  3. See answers to 1 and -2 above.
  4. Commonwealth legislation does not permit of action being taken on the lines suggested
  5. See answer to 1 above.

page 1297

QUESTION

BUTTER SUBSTITUTES

Senator J B HAYES:
forHERBERT Hays · through Sena

asked the Minister representing the Minister for Commerce, upon notice -

  1. Is it a fact that butler substitutes are a grave menace to the dairying industry?
  2. Will he consider the advisability of bringing in legislation to prohibit their manufacture andsale?
Senator BRENNAN:
Minister without portfolio assisting the Minister for Commerce · VICTORIA · UAP

– The Minister for Commerce has supplied the following replies to the honorable senator’s questions >-

  1. The Government is aware of the growth of butter substitutes, andhas the matter at present under consideration.
  2. Seeanswer to question 1above.

page 1297

QUESTION

CANBERRA HOSPITAL

Senator COLLINGS:

asked the Minister representing the Minister for Health, upon notice -

Will the Minister have inquiry made into the position prevailing at the Canberra Government Hospital to which Senator Ceilings made reference in the Senate on the 12th instant?

Senator BRENNAN:
UAP

– The remarks of the honorable senator have been brought to the notice of the Minister for Health who proposes to have inquiries made immediately.

page 1297

QUESTION

NEW GUARD

Petition to the King.

Senator COLLINGS:

asked the Minister representing the Prime Minister, upon notice-

  1. Is it a -fact that a petition to Hip Majesty the King is being prepared and printed in Sydney by the organization known as the New Guard praying His Majesty the King to reverse the policy of ail Australian GovernorGeneral, and send to Australia instead a member of theRoyal Family.?
  2. If the Prime Minister is not aware of this, will be ascertain if the petition is being so prepared 1
  3. If such a petition is being prepared will he inform the Senate what steps are proposed to ensure that any matter of government policy reaches His Majesty only through the proper constitutional parliamentary channels?
Senator McLACHLAN:
SOUTH AUSTRALIA · NAT

– -The Prime Minister has supplied the following answers to the honorable senator’s questions : -

  1. I have been informed that such a petition is being prepared.
  2. See reply to No. 1.
  3. The existing practice makes adequate provision to ensure that His Majesty’s Ministers of the Commonwealth would have full opportunity of submitting to His Majesty such advice as might be considered desirable in relation to any petition of the nature referred to by the honorable senator.

page 1298

FLOUR TAX ASSESSMENT BILL (No 2)1934

Bill returned from the House of Representatives, with a message intimating that it had agreed to the amendments made by the Senate in this bill.

page 1298

FLOUR TAX BILL (No. 3) 1934

Message received from the House of Representatives intimating that it had made the amendment requested by the Senate in this bill.

Bill (on motion by Senator Brennan) read a third time.

Sitting suspended from 12.45 to 2.15 p.m.

page 1298

WAR SERVICE HOMES BILL 1934

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

Bill (on motion by Senator McLach- lan) read a first time.

Second Reading

Senator McLACHLAN:
Postmaster-General · SOUTH AUSTRALIA · NAT

– I move -

That the bill be now read a second time.

This is a small measure which has been brought forward to authorize the Commissioner to approve of advances to purchasers of war service homes being increased from £800 to £950. This will enable additional advances to be made for accommodation, sewerage and other utility services where the purchaser’s account is clear and he is in a financial position to pay the extra instalments. The Commissioner has not now got that power.

Question resolved in the affirmative.

Bill read a second time and passed through its remaining stages without amendment or debate.

page 1298

SPECIAL ANNUITY BILL 1934

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

Bill (on motion by Senator Sir George Pearce) read a first time.

Second Reading

Senator Sir GEORGE PEARCE:
Minister for External Affairs · Western Australia · UAP

[2.19]. - I move-

That the bill be now read a second time.

The late David Charles McGrath was a member of the House of Representatives for 20 years, in which period he was a member of the Joint Parliamentary Committee on Public Works, from January, 1926, to September, 1929, and Chairman of Committees of the House of Representatives from November, 1929, until November, 1931. With the exception of a short period he was continuously a member of the House of Representatives from 1913 until his death on the 31st July, 1934. Prior to his entry into the Parliament of the Commonwealth he was for nine years continuously a member of the Legislative Assembly of the Parliament ofVictoria, so that for a total period of 29 years he was a representative of the people in the legislatures of his country. He served in the Australian Imperial Force during the Great War from March, 1916, to the 31st July, 1918, when he was discharged as medically unfit for further military service. The Government made inquiries into the position of the widow and is satisfied that an annuity of £156 is fully warranted. There are several precedents for this action in that previous parliaments have provided annuities for former members or their dependants.

Question resolved in the affirmative.

Bill read a second time and passed through its remaining stages without amendment or debate.

page 1299

TRANS-PACIFIC FLIGHT APPROPRIATION BILL 1934

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

Bill (on motion by Senator Sir George Pearce) read a first time.

Second Reading

Senator Sir GEORGE PEARCE:
Minister for External Affairs · Western Australia · UAP

[2.25] - I move -

That the bill be now read a second time.

This bill provides for an appropriation of the sum of £5,000 as a grant to Mrs. Mary Josephine Ulm, the wife of FlightLieutenant C. T. P. Ulm, who, it is feared, has lost his life in connexion with the attempted flight from Canada to Australia. This sum represents the equivalent value of a life insurance policy in the name of Flight-Lieutenant Ulm, which was handed over by him as part security for an overdraft of £8,000 granted by the Commonwealth Bank to meet the expenses in connexion with his flight, including the purchase of an aeroplane. When this flight was in contemplation, representations were made to the Government that the Commonwealth should guarantee a bank overdraft to meet the expenses incidental to the flight. The matter was given very careful consideration by the Government and.it was felt that, having regard to the value of the flight from a developmental point of view, and the fact that it was to be carried out by means of a British aircraft and would, if successful, be a demonstration of the value of the aircraft for long-distance flights, it was considered that the Commonwealth should assist within reasonable limits towards making the venture possible. The Government recognized also the fact that a flight of this nature would be a fitting part of the Victorian centenary celebrations. Before coming to this conclusion, the Government obtained reports from its technical advisers in aviation matters and the indications were that there was every reason to believe that the flight would be successful. The Government, therefore, decided, subject to Parliamentary approval, to guarantee a bank overdraft to the amount of £8,000 for the purpose of the expenses of the flight. The arrangement was that, should the amount of the advance not be repaid by Mr. Ulm, or other arrangements not be made with the bank to its entire satisfaction by the 30th June, 1935, the Government would liquidate the whole or any part of the advance which might be outstanding at that date. An undertaking was given to the Commonwealth Bank, on behalf of the Government, to submit to Parliament a bill to provide the necessary statutory authority. The guarantee was given subject to the Commonwealth Bank taking as security for the overdraft a life insurance policy for £10,000 on the life of Flight-Lieutenant Ulm, and also a bill of sale on an aeroplane Faith in Australia. This is not the aeroplane that was lost in the flight. The life insurance policy contained a clause that the total amount payable would not exceed £5,000 in the event of the death of Mr. Ulm whilst engaged in aviation outside Australia. The aeroplane was valued by Mr. Ulm at £4,000. The negotiations in connexion with the guarantee took place near the end of the last Parliamentary session, and it was the intention of the Government to introduce a bill early in the current session to secure Parliamentary approval of the guarantee. As honorable members are aware, Mr. Ulm’s flight has proved a failure and the Government had to decide what action should be taken in connexion with the guarantee. It felt that, in view of all the circumstances, it would be somewhat harsh to enforce the conditions of the guarantee in their entirety, and it was not proposed to require the Commonwealth Bank to exercise its rights over the life insurance policy. Representations, however, have been made in the interests of Mrs. Ulm that it would be more satisfactory if the Commonwealth exercised its right through the Commonwealth Bank over the life insurance policy, and in lieu thereof made available to her a straight-out grant of an amount equivalent to the amount recoverable under the policy, namely £5,000. In the normal course of events the amount payable under the policy would not be actually paid to Mrs. Ulm for some considerable time. Thu3 through this grant she will be enabled to participate, without delay, in the benefits, which would otherwise accrue from the policy. Briefly, under the provisions of the bill, a grant of £5,000 is to be made to Mrs.Ulm,. and the Common-wealth Bank willexercise its right under” t’he securities, by collecting the £5,000 payable under’ the policy, and realizing on the aeroplane’ Faith in Australia, over which it hold’s a bill of sale. It- is anticipated that the proceeds of these Securities’ will liquidate’ the amount’ of the overdraft. I regret the necessity for bringing this bill’ forward’, but I trust’ that the Senate will see its way clear to pass it*

Question resolved in the affirmative.

Bill read a second- time, and’, passed through its remaining stages’ without amendment or debate.

page 1300

ASSENT TO BILLS

Assent’ to- the followingbills- reported-

Appropriation Bill’ 1934-35.

Income Tax Assessment Bill (No. 2). 19-34.

National Debt Sinking Fund’ Bill 1934.

Sitting suspended- from-2.35- to3.42 p.m.

page 1300

SALES TAX PROCEDURE BILL 1934

Bill received from the House of Repre sentatives.

Standing and Sessional Orders suspended.

Bill (on motion by Senator BRENNAN) reada first- t’ime”.

Secondreading.

Senator BRENNAN:
Assis tant Minister · Victoria · UAP

’. - I move -

That thebill he now reada.second time.

This bill: does not seek to- impose- any additional liability, upon” any taxpayer-.

As-its name- implies, it relates only to procedure, and is designed merely to rendermore effective the existing, machinery provisions of the law a’s regards the col-‘ lection and recovery of sales tax. Thebill does not affect- the liability provisions of the law in any way, and thus” does not touch upon! the field of exemptions from tax* under the existing1 law. It is not intended, at the present- juncture,, to consider’ any extensions- of the present exemptions. As the result of views expressed in connexion with recent litigation, attention has been drawn to the fact that the existing law does not fully authorize the procedure which has been f’ollo’wed in these matters ever since *the inception’ of the sales tax. The- procedure followed has operated- to the mutual advantage of taxpayer’s and of the department’, and’ if its continuance be not authorized, serious burdens Will be! placed upon all concerned.

So far as taxpayers are concerne’d, it may be explained that,, in instances where they make sales of- different classes of goods, rendering them liable under’ the different Sales Tax” Assessment’ Acts, returns are accepted’ showing’ thetot’al sales, without requiring any dissection to- show the amounts of the- sales which are* taxable”’ under each of the’ act* a-ffee’ted. & strict application1 ofthe existing’ law would require”- separate” returns of the sales which are taxable’ under’ each’ of those acts,- but’ if taxpayers; had to furnish- such separate’1- returns- it” would be unnesslary for’ them- to keep special records of all their* stocks;, in. order” to determine the origin of each parcel of goods” sold. The’, keeping of such’- recordswould be> not- merely difficult. but, in fact, practically impossible.

In its administration of the law- the” departmenthas- successfully conducted action’s’ for’ recovery’ of tax”, and prosecu-> tions for evasions of the law, withouthaving” be’en required’ to prove, in cases’ where the liability to tax” arose’ undermore1 than one of the Sales Tax- Assess’ ment Acts-, the extent Of the liability under each particular act affected. Strict observance of- the existing law would1 r’equire the derpartment to- prove’ the extent of the’ liability under each of those act’s. This would” be an impossible task, as it woul’d involve- tracing the origin of eachparcel of goods sold.

Itmay be explained that the object of the bill is to’ remove such’ difficulties only in’ those c’as’es where” the actual amount of the liability to sales tax would not be affected by determining the particular” acts under which the’ liability to” tax arose. ‘Whichever of the acts is-‘ applied in these’ cases, the amount of the” liability remains the same’. The necessity for p’roving, in these’ cases the” particular” act affected is, therefore, not only burdensome’ but also unnecessary.

The procedure hitherto adopted by the department is regarded as the only practicable scheme for collection and recovery of the tax, and it is essential that legislative sanction be given thereto. In order so ons-ure the effective operation of the proposed law in connexion with the collection of tax on transactions taking place prior to its commencement, it is intended that the measure shall be made to apply retrospectively from the commencement of the original sales tax legislation, viz., the 18th August, 1930. Those honorable gentlemen who find a profit in studying the pages of Hansard will discover that on other occasions I have expressed dissatisfaction with retrospective legislation. To them I would say that the objection which I have urged against retrospective provisions in bills cannot be directed to this measure, because it does not involve any person in liability to prosecution for anything which he may not have done unless he would have been liable under the existing law. It will be seen, therefore, that the retrospective provisions of this bill arc not objectionable.

The bill also proposes to confirm all judicial proceedings determined prior to the commencement of the proposed law, and to preserve the rights of litigants in any proceedings instituted and pending on or before the 29th November,. 1934, or some convenient later date prior to the commencement of the proposed law.

Question resolved in the affirmative.

Bill read a second time.

In committee:

Glauses 1 to 4 agreed to.

Clause 5 (Returns).

Senator PAYNE:
Tasmania

.- I t is not my intention to delay the passage of the measure; but I think this is an opportune time to express my regret that important bills like the one now before the committee are so often presented in the Senate in the closing hours of the session, when we have not a reasonable opportunity to discuss them. I know of no legislation that is so difficult to understand as the various sales tax acts. All honorable senators must know, from the correspondence which they receive, how harassing is this form of legislation to the business community. The compilation of returns often involves taxpayers in considerable expenditure, sometimes out of all proportion to the amount of tax paid. In one case that came under my notice the cost of preparing the returns was at least treble thi amount of tax. Wo should have a fuller opportunity to discuss this important legislation. I know that it is useless for me to bring under the notice of the Government to-day complaints which have been submitted to mc, because there will now be no time to deal with them; but I hope that, in future, amending sales tax bills will be introduced earlier, so that we may study them, and, if necessary, submit amendments to simplify the law. I believe that the various acts could be simplified without prejudicing the revenue. If this were done, it would be much appreciated by the business community. The sales tax presses very heavily upon small traders, especially those dealing almost exclusively in standard lines of confectionery, because it has to be paid by the retailer, and as in most cases manufacturers have fixed standard prices for their different lines, the small retailer is unable to pass on the tax to- the public. On one line, the tax amounts to one-eighth of a penny, so that a small shopkeeper whose profits may not be more than £2 or £3 a week is hit very heavily. The wholesale traders are in a better position because they can pass on the tax to the retailers.

Senator BRENNAN:
Assistant Minister · Victoria · UAP

Senator Payne appears to have overlooked the fact that one of the merits of this bill is that it does simplify the procedure, and to that extent it benefits the taxpayer. Under the existing law the department could require traders to furnish nine separate returns on sales made under the several acts.

Clause agreed to.

Clauses 6 to 10 agreed to.

Clause 11 (Offences in respect of avoidance of tax).

Senator PAYNE:
Tasmania

– Can the Assistant, Minister say if the minimum penalty of £50 provided in this clause for offences against the law is an increase of the present penalty? I ask the question because I have not had an opportunity to compare this bill with existing legislation.

Senator Brennan:

– The minimum penalty provided by the present, law is £50, plus three times the amount of the tax avoided. The bill proposes a fine of £50, plus the amount of the tax avoided.

Clause agreed to.

Clauses 12 to 14 agreed to.

Title agreed to.

Bill reported without amendment; report adopted.

Bill read a third time.

page 1302

LOAN APPROPRIATION (UNEMPLOYMENT RELIEF) BILL 1934

Bill received from the House of Representati ves.

Standing and Sessional Orders suspended.

Bill (on motion by Senator Sir George Pearce) read a first time

Second Reading

Senator Sir GEORGE PEARCE:
Minister for External Affairs · Western Australia · UAP

[4.0]. - I move -

That the bill be now read a second time.

This bill represents the second step in the Government’s employment programme, the first step of which was the allocation a fortnight ago of £176,000 for renovations to Commonwealth properties, and included works which could be put in hand at once and provide employment before Christmas. The amount of £176,000 was obtained from Consolidated Revenue.

This bill provides for a further sum of £200,000 for Commonwealth works to be allocated from loan. It also provides for £1,000,000 as a Commonwealth contribution to State works, £283,750 by way of augmenting assistance to the mining industry through the State mines departments, and £50,000 for the assistance of mining in the Northern Territory, making a total further contribution to the relief of unemployment of £1,533,750.

It is not possible to inform the Senate at this juncture what works will be included in this programme. The Government is at present examining submissions from the various departments of a very considerable total, and parliamentary approval is now asked to enable some of these works to be commenced without waiting for the re-assembling of Parlia ment. The bill, however, will provide that such works after approval by the Treasurer shall be notified by publication in the Gazette. The Government will select only those works which are most urgent and most justifiable.

Senator Sampson:

– Do the States have to submit proposals?

Senator Sir GEORGE PEARCE:

– I am referring now to Commonwealth works. There are some urgent works to be undertaken in the Repatriation Department in connexion with hospitals, notably in making some of them more comfortable in summer months. It is desired that works of that character shall be expedited, so that the benefits of the improvements effected may be enjoyed during the summer months.

A further sum of £1,000,000 is proposed to be appropriated to assist the States in carrying out additional works policies within their territories. These are the works to which Senator Sampson referred. Honorable senators were informed in the Governor-General’s Speech that it is the intention of the Government to assist the States in this manner with a view to mitigating unemployment. In pursuance of this policy each State Premier was asked early in November last to supply schedules of works which it was suggested were appropriate for Commonwealth assistance. Very substantial programmes have been submitted by most of the States, all of which have been and are still subject to negotiations with the Commonwealth. At this stage it is impossible to give detailed particulars of the works to be undertaken, in each State, and consequently a sum has been allotted to each State pending the adoption of the programme. In negotiating with the States the Government is endeavouring to encourage enterprise on the part of the State governments and local governing authorities with a view to increasing the value of the Commonwealth contribution. Following this principle the schedule of works in New South Wales will probably consist largely of schemes for the installation of water supplies and sewerage systems in provincial areas. The New South Wales appropriation will also cover an amount of £63,000, representing the agreed upon contribution by the Commonwealth for the provision of an improved highway between Yass and the boundary of the Federal Capital Territory.

Senator Guthrie:

– Is that road in a bad state of repair ?

Senator Sir GEORGE PEARCE:

– It is not a good road, particularly in wet weather. This work, whilst shown as of assistance to New South Wales, is essentially a. Commonwealth provision^ s.s the New South Wales Government has definitely intimated that the present roadway servos State purposes. Many of the works submitted in the New South Wales schedule contemplate the expenditure of considerable sums of money by local authorities as well as contributions by the State governments. This is a commendable feature, because many of those works are beyond the financial capacity of the local governing authorities. With the assistance of Commonwealth and State contributions these works will be brought within the financial capacity of the local authorities. We must not impose too heavy a burden upon the ratepayers, but, under this arrangement, they will derive the benefit of improved water supplies and sewerage systems at a reasonable cost, and will pay interest only upon the contributions made by the municipalities, Moreover, employment will be provided and the improvements generally will be a distinct benefit to those residing in country areas.

In Victoria it is expected that the principal measure of assistance shall be in respect of public works to make good the damage done by the recent floods, and. again it is proposed that this aid shall be granted on a £1 for £1 basis. If honorable senators will turn to the schedule they will see that the amount provided for Victoria is £225,000, which will represent an actual expenditure of £450,000.

The Government is endeavouring to make similar arrangements with other States, but as negotiations are still in progress, it is not possible to supply details of the allocations proposed.

The amounts which Parliament is now asked to appropriate are intended to ensure relief being afforded to large num bers of the unemployed in each State without waiting for the re-assembling of Parliament.

Many authorities have expressed the opinion that the development of our metalliferous mining resources offers scope for national activity. During recent years the production of gold in Australia has declined below the yield of a couple of decades ago. With a view to exploring the possibilities in this connexion, a conference of the mining authorities of the several States was held in Melbourne last week. This conference, which was attended by the Ministers for Mines and principal officers of the Mines Departments of five States, strongly recommended that Federal financial assistance should be granted to the States to enable them to amplify their efforts in this direction. It was finally decided unanimously to recommend that a sum of £353,000 should be granted to the States for this purpose and £50,000 for use in the Northern Territory - a total of £403,000. All the State authorities indicated that satisfactory results wore being achieved by the assistance rendered from State funds, but they were hampered in further developing their mining potentialities by lack of funds. It was suggested that the Commonwealth assistance should be devoted to increasing the geological and other technical staff, to the assistance of prospectors, the provision of batteries and other treatment plants, where these facilities were nor, available, and to a number of other purposes including advances to individuals and syndicates whose ability to exploit their holdings was restricted by lack of finance. The amount proposed to be allocated for this purpose was £138,500.

While the Government ha3 been prepared to accept the conclusions and recommendations of the conference in general, it is thought that the item of £138,500 for advances should be the subject of joint contributions by the Commonwealth and State authorities. Consequently the total amount recommended by the conference, to be set aside for these advances has been reduced by one-half, and it is intended that the Commonwealth grant of £69 250 for this purpose shall be conditional upon a similar contribution from the States. If advances of this character were made solely from Commonwealtib. money, no responsibility would rest upon the States. If a State has to find one-half of the advance and the Commonwealth the remainder, State authorities will be more energetic in seeing that the advances are sound and are properly policed. One of the conditions proposed to be applied to the provision of assistance to mining is the setting up of a trust in each of the States to administer the federal aid, and on this trust the Commonwealth will be appropriately represented.

Senator Duncan-Hughes:

– There is nothing about that in the bill.

Senator Sir GEORGE PEARCE:

– That was made a condition in our negotiations with the States. I also direct attention to sub-clause 2 of clause 5 -

Any amount granted to a State under this section shall be paid upon condition that it is used by the State, in such manner and subject tosuch conditions as the Treasurer approves.

Senator Sampson:

– Where does the bill provide that a trust shall be established?

Senator Sir GEORGE PEARCE.It is not set out in the bill; but it is one of the conditions to which the States agreed.

It is hoped that, as a result of cooperative action by the Commonwealth and State authorities in the manner indicated, a considerable revival of mining will be assured ; judging by the experience of the assistance already rendered by the States this should result in the gold production of the Commonwealth being greatly increased. It is also intended to apply £50,000 for the encouragement of mining in the Northern Territory, a large portion of which will be by way of encouraging prospecting and providing facilities such as water supplies and tracks, treatment plants, &c. Allowing for the reduction of the item already referred to, the provision made in the bill for mining assistance is £283.750 for administration by the States, and £50,000 for the Northern Territory, making a total of £333,750.

In connexion with the item of £50,000 for the encouragement of mining development in the Northern Territory. I may inform honorable senators that already there are some very promising developments there. While the Government has no doubt that capital will be contributed by the investing public, there is a responsibility upon the Government to provide water supplies in those areas, and to make them accessible by tracks. This sum is largely for that purpose. The Government trusts that the developments which will follow these activities will assist to increase the permanent population of the Northern Territory. Some of these areas may develop into prominent fields, and we do not wish torisk the possibility of mining fields being opened up without a reasonable supply of water, and a tragedy resulting.

Senator Duncan-Hughes:

– Is there not as much chance of mining being successfully developed in Papua as in the N o rthem Ter r i tory ?

Senator Sir GEORGE PEARCE Yes. I regret that I allowed this schedule to go through Cabinet without urging that a sum be set aside for encouraging mining development in Papua. The matter was brought under my notice by one of the officers to-day; but I am sorry that I was not reminded earlier, as1 the expenditure of a few thousand pounds in Papua might have a very beneficial effect.

Senator Sampson:

– It needs it badly.

Senator Sir GEORGE PEARCE:

– It does. If the whole of the amount appropriated for the Northern Territory is not required, I shall see if some can be diverted to Papua. Possibly the Government may be able to provide £5,000 of the amount appropriated for the Northern Territory for expenditure in Papua. I shall sec if anything can be done.

I have seen some superficial criticisms of this proposal to assist the gold-mining industry. The argument used is that the present abnormally high price of gold renders government assistance to gold-mining unnecessary. Whilst that is quite true of mines which have been developed and reasonable returns are indicated by assay or crushings, because there the public will supply all the capital required, the Government can still do a great deal to stimulate the finding of new lodes and other deposits by assisting prospectors, providing water supplies, and in other ways. If new mines can be discovered by these means they will be a great help to Australia, because gold is the one thing for which the world is hungry. Some most interesting information was given to the conference to show the value of government assistance. For instance, the Mount Morgan gold-field had been absolutely abandoned, and its town was practically deserted. The first grant was only £250. That was followed by assistance to the amount of £15,000. The consequence is that the Mount Morgan to-day is employing 400 or 500 people and paying dividends, and the town has over 2,000 inhabitants. The case of Wiluna was also cited. In that instance the Commonwealth and State Governments guaranteed £300,000 worth of debentures issued by a company to enable it to develop that enormous proposition. This is one of the world’s outstanding successes in the development of gold-mining. All that money has been repaid. Other similar cases of successful government assistance in Western Australia and elsewhere were mentioned, as showing what could be done in opening up new fields and developing hidden resources.

Senator PAYNE:
Tasmania

– I support the second reading of this important bill, and am pleased to find that provision has been made to assist prospecting in various parts of Australia. I am quite in accord with the principle of the States accepting certain responsibilities in connexion with the prospecting vote or any other money to be used to develop Australia’s mineral resources, but I wonder whether the necessity to provide £1 for £1 may wot press very hard on some of the poorer States.

Senator Sir George Pearce:

– That condition applies only in the case of advances.

Senator PAYNE:

– The sum of £25,750 is made available to Tasmania, but if the State is to obtain the full benefit of that money it must provide a similar amount.

Senator McLACHLAN:
SOUTH AUSTRALIA · NAT

– No; only a portion of it, and that a very small proportion, representing advances.

Senator PAYNE:

– I believe that good results will follow from this financial assistance. I was pleased to hear Senator Duncan-Hughes’ interjection with regard to Papua. The most recent report from that country is as follows: -

Gold-mining has shown some progress since I last reported, but the new activities are only minor so far. Capital is being expended in a small way in prospecting in various parts of the territory, and there is reasonable ground for hoping that one or more of these ventures may develop into something big. What we need to give the revenue a fillip is undoubtedly large scale operations which will need the employment of native labour in large numbers.

I hope that the Government will find some way to assist Papua in this direction, because, during the last few years the grants to that territory have’ been considerably reduced, and the considerable fail in the price of copra has greatly militated against its progress. If the Government will appropriate a sum of money to give the necessary fillip to the gold-raining industry in Papua it will render to that dependency -help that is much needed at the present time.

Question resolved in the affirmative.

Bill read a second time, and passed through its remaining stages without amendment or debate.

page 1305

CONFERENCE OF COMMONWEALTH AND STATE MINISTERS

Summary of Proceedings

Senator BRENNAN laid on the table the following paper : -

Conference of Commonwealth and State Ministers on Agricultural and Marketing Matters, held at Canberra, 3rd and 4th December, 1934 - Summary of Proceedings.

page 1305

FRIDAY ADJOURNMENT

THE PRESIDENT (Senator the Hon. P. J. Lynch). - In conformity with the Sessional Order, I formally put the question -

That the Senate do now adjourn.

Question resolved in the negative.

page 1305

SEAT OF GOVERNMENT (ADMINISTRATION) BILL 1934

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

Bill (on motion by Senator Sir George Pearce) read a first time.

Second Reading

Senator Sir GEORGE PEARCE:
Minister for External Affairs · Western Australia · UAP

[4.26]. - I move -

That the bill be now read a second time.

Thi* is one of those technical measures which the departments seems to have the happy knack of bringing forward on the eve of Christmas. 1 do not know why the legal defect with which it deals could not have been discovered earlier, and the bill introduced into the Senate when it had more leisure. However, the bill is not of great importance. The necessity for it arises in this way: When the Federal Capital Commission was constituted in 1924, certain lands contiguous to the Territory were vested in the commission in virtue of the Seat of Government . (Administration) Act 1924-1929. Certain other lands outside the Territory, which had been acquired under the Lands Acquisition Act, were transferred by the Commonwealth to the commission. In 1930 the commission ceased to exist, and, by section 7 of the Seat of Government (Administration) Act 1930, all lands which were vested in the commission became vested in the Commonwealth. Lands in the Territory could then be disposed of by lease or otherwise in accordance with laws of the Territory, but there was no provision for leasing or otherwise disposing of lands which are outside ibc Territory. Section 63 of the Lands Acquisition A’ct provides that lands which are acquired or deemed to be acquired under that act may be disposed of if not required for Commonwealth purposes. There is no reason why the lands- to which the bill relates should not bc subject to disposal in the same manner as lands acquired under the Lands Acquisition Act. All such lands were, in fact, acquired under that act, but by reason of the Seat of Government (Administration) Act 1924-1929 and 1930, they have ceased legally to have that “characteristic. The object of this bill is, therefore, to bring these lands once more under the provisions of section 63 of the Lands Acquisition Act.

Question resolved in the affirmative.

Bill read a second time, and passed through its remaining stages without amendment or debate.

page 1306

SPECIAL ADJOURNMENT

Motion (by Senator Sir George Pearce) agreed to -

That the Senate at its rising adjourn till a day and hour to be fixed by the President, which time of meeting shall be notified to each

Ben alor by telegram’ or letter.

page 1306

LEAVE OF ABSENCE

Motion (by Senator Sir George Pearce) - by leave - agreed to -

That leave of absence be granted to every member of the Senate from the determination of the sitting this day to the day on which the Senate next meets.

page 1306

ADJOURNMENT

Valedictory

Senator Sir GEORGE PEARCE:
Minister for External Affairs · Western Australia · UAP

[4.33].- I move-

That the Senate do now adjourn.

I desire to express to honorable senators my appreciation of the way in which they have helped, under somewhat difficult circumstances, to transact the business of this chamber. I think that Parliament will probably bo called together about the beginning of February next, unless anything unforeseen happens.

To you, Mr. President, and to all honorable senators, to the officers and staff of this chamber, and to members of the Ilansard staff, I wish a happy Christmas and prosperous New Year.

Senator BARNES:
Victoria

.- 1 reciprocate the sentiments expressed by the Leader of the Senate (Senator Pearce;, and on behalf of the members of the Opposition, extend to all honorable senators, irrespective of party, our good wishes. Despite our political differences we have for each other a warm personal regard which can be appropriately expressed at this season of universal goodwill. On behalf of my colleagues on this side of the chamber, I wish to all honorable senators a happy fasti to season and a prosperous New Year.

The PRESIDENT (Senator the Hon. P. J. Lynch) [4.35]. - I thank the Leader of the Senate (Senator Pearce) and the Leader of the Opposition (Senator Barnes) for the sentiments they have expressed towards myself and the officers under my control. It is very pleasing to me, as a disinterested outsider, as it were, to observe the feelings of mutual respect and conciliation displayed by political antagonists in this ch amber. That is as it shouldbe, because there are as many different opinions as to how the public affairs of the the country should be run as there are brands of tea and whisky. There is no reason why one honorable senator should entertain personal enmity towards another honorable senator who differs from him politically. Judging by the rapidity with which such differences are forgotten, they are as light as the air. Others -who have been prominent in the Senate and in the other branch of this Parliament hare differed politically; they have passed on, and their differences and even the men themselves have been forgotten. So we, too, can forget at this season of goodwill, any momentary bitterness that may havebeen occasioned in the ardour of political dispute. [ appreciate the work performed by the staffs of the chamber. They have carried out their various and arduous tasks with their usual courtesy, and in that way have made it so much easier for honorable senators of all parties to perform their work to the satisfaction, I hope, of the people who sent them here. I again thank the Leader of the Senate and the Leader of the Opposition for their kind remarks, and extend to them, and to all honorable senators, and members of the staffs of this chamber, my good wishes for a happy Christmas.

Question resolved in the affirmative.

Senate adjourned at 4.39 p.m. tilla day and hour tobe fixed by the President.

Cite as: Australia, Senate, Debates, 14 December 1934, viewed 22 October 2017, <http://historichansard.net/senate/1934/19341214_senate_14_145/>.