Senate
1 July 1937

14th Parliament · 2nd Session

  1. Senate
  2. 14th Parliament
  3. 1937

The President (Senator the Hon. P. J. Lynch) took the chair at 10 a.m. and read prayers.

page 788

QUESTION

AUSTRALIA’S FINANCIAL STANDING IN ENGLAND

Senator FOLL:
QUEENSLAND · NAT; UAP from 1931

– Has the Leader of the Senate seen the recent press report of the statementby the Premier of Queensland, Mr. W. Forgan Smith, that at the moment Australia’s financial standing is very high in England and theunder-subscription of the last Commonwealth conversion loan had no significance, but was due solely to the disturbed state of Europe and the nervous condition of the money market? Does the ad vice received by the Government coincide with that statement? Further, is it a fact that just after the Commonwealth conversion loan was floated the London County Council launched a loan, a much larger percentage of which was left in the hands of the underwriters?

Senator Sir GEORGE PEARCE.The advice received by the Government undoubtedly confirms the statement of the Premier of Queensland.

page 788

QUESTION

NEWSPAPER MISREPRESENTATION

Senator BROWN:
QUEENSLAND

– by leave - I desire to direct the attention of the Senate to a report that appeared in the press yesterday, not only because it must have had a disturbing effect on the minds of honorable senators opposite, but also because it is untrue. The report in question states that there is grave discord in the ranks of the Labour party and that that discord was responsible for the adoption of stonewalling tactics. The impression conveyed to the public by this gross misrepresentation is that there is disunity in the ranks of the Labour party. I am very pleased to be able this morning to disabuse the minds of honorable senators opposite on that point. There is absolutely no disunity in the Labour party.

Senator Dein:

– And no unity.

Senator BROWN:

– That, I believe, is merely a philosophical observation. There is absolute unity.

Senator Crawford:

– Is thehonorable senator referring to the position in this Parliament?

Senator BROWN:

– In this Parliament and generally throughout the country. Disunity was not the reason for the stonewalling tactics adopted.

The PRESIDENT:

– I am waiting for the honorable senator to indicate his personal relationship to the matter.

Senator BROWN:

– I am closely related to the Labour party, and that party is affected by this misrepresentation. I conceive it to bo only fair that the real reason should be given for the action taken the other night. It was, that the Government had delayed calling Parliament together until the Supply granted to it was almost exhausted, and then proposed to rush through a Supply Bill in order that public servants and others might not be penalised, although it had had six months in which to prepare and bring forward its legislation.

The PRESIDENT:

– Order ! The honorable senator must understand that he cannot exceed the bounds of the order of leave. He hasbeen given leave to make a statement for a specific reason, and if he exceeds it the responsibility for what follows must rest on him. His remarks will not be in order unless he show’s that he has been personally misrepresented or misreported.

Senator BROWN:

– On several occasions the Leader of the Senate has made statements in refutation of misrepresentation.

The PRESIDENT:

– In those cases the misrepresentation was personal.

Senator Sir George Pearce:

– And it related to the business of this Senate.

Senator BROWN:

– I was under the impression that an honorable senator might make a statement in regard to misrepresentation-

The PRESIDENT:

– Regarding himself.

Senator BROWN:

– Regarding anything that affected him as a member of this Senate. I claim that privilege.

The PRESIDENT:

– So also could the other 35 members of the Senate.

Senator BROWN:

– I am not preventing them from doing so.

The PRESIDENT:

– My duty would be to do so. The Standing Orders must be observed.

Senator BROWN:

– I say that the press report is untrue. There is no discord in the ranks of the Labour party. The reason for the action which it took is that which I have stated.

page 789

QUESTION

CIVIL AVIATION

Commonwealth Expenditure in Tasmania.

Senator SAMPSON:
TASMANIA

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

  1. What amount of moneyhas been expended by the Commonwealth Government in the State of Tasmania on the purchase, construction, preparation, and upkeep of - (a.) Aerodromes;

    1. Landing Grounds;
    2. Emergency Landing Grounds.

  2. What are the names of the above and the amount expended on each?

Senator Sir GEORGE PEARCE.The Acting Minister for Defence has supplied the following answers: -

In addition, approval has recently been given for expenditure of an additional amount of £2,500 at Wynyard aerodrome, control of which is being taken over bythe Commonwealth.

These figures include the cost of acquisition, surface preparation and buildings at Government areodromes, but do not include amount spent or to be spent in the provision of auxiliary services (wireless aids and night flying equipment) at Western Junction and Cambridge aerodromes.

page 789

QUESTION

MIGRATION

Senator COLLINGS:
through Senator Brown

asked the Minister representing the Prime Minister upon notice -

  1. What action, if any, has been taken by the Government regarding a scheme or schemes for the introduction into Australia of migrants from (a) the United Kingdom: (b) any other countries?
  2. What negotiations, if any, have been conducted with this objective in view (a) with the United Kingdom; (b) with any other countries?
  3. Under what terms and under what authority are migrants now being admitted into Australia?

Senator Sir GEORGE PEARCE The Acting Prime Minister has supplied the following answers: -

  1. The question of the resumption of assisted migration from the United Kingdom was discussed informally at Adelaide in August. 1936, by a Sub-Committee of Commonwealth and State Ministers. Members of the SubCommittee then decided that definite proposals in writing should be submitted by the Commonwealth to the States for their consideration.

The Prime Minister accordingly addressed a letter on 16th September, 1936, to the Premier of each State in regard to the matter. The following suggestions were embodied in the letter as being worthy of consideration, emphasis being laid on the fact that all applications for assisted passages must first be approved by the State in which the prospective migrant wouldreside -

  1. the extension of the grant of assisted passages of relatives of persons already in Australia;
  2. if it should be the desire of any State that female household workers and/or youths for farm work be introduced, the Commonwealth would arrange for their introduction ; and

  3. persons of British stock resident in the United Kingdom who would be in possession of -

    1. in the case of a married man, not less than £300 capital on. arrival in Australia, or, alternatively, a pension or other in- come of not less than £100 per annum ; and
    2. in the case of a single man, not less than £50 capital on arrival might be given the same benefits in respect of assisted passages as were contemplated in regard to nominated migrants.

The Commonwealth Government considered the question in the light of the replies received from the State governments, and, in view of their divergent character, decided to deal with assisted migration on a State basis, i.e., if any State were desirous that assisted migration be resumed, either wholly or in part, the Commonwealth would arrange -

  1. to select in the United Kingdom, and
  2. to grant assisted passages to migrants whom any State wished to introduce.

The present position is that the Commonwealth is prepared to provide, in conjunction with His Majesty’s Government in the United Kingdom, assisted passages to the extent desired by the States.

The grant of assisted passages is confined to such classes of migrants from the United Kingdom as are asked for by the States concerned.

  1. None.

2.-

  1. See reply to No. 1 (a). The United Kingdom Government co-operates with the Commonwealth Government in the provision of assisted passages on a 50-50 basis to approved migrants from the United Kingdom.

  2. None.

    1. White British migrants are admitted into Australia if in sound health, of good character and in the possession of valid passports, provided also that there is no reason to believe in any individual case that the migrant, if admitted, is likely to become a charge upon the public.

It is necessary for alien migrants to obtain Landing Permits before being admitted into Australia. Residents of Australia who wish to introduce alien dependent relatives, such as wives, minor children, &c, are required to furnish guarantees for their maintenance. If the intending migrants are not close dependent relatives of persons already settled in the Commonwealth, the Department of the Interior requires to be satisfied that they can be absorbed in trades and occupations in Australia without detriment to local workers. In the case of non-dependent relatives, it is also the rule, if the issue of a Landing Permit is approved, to require the migrant to be in possession of £50 landing money if his maintenance has been guaranteed, or £200 if his maintenance has not been guaranteed by someone resident in Australia.

page 790

FEDERAL AID ROADS AND WORKS BILL 1937

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

[10.10].- I move-

That the bill be now read a second time.

The purpose of the bill is to approve a new agreement with the States relating to federal aid roads and other works connected with transport, in place of the current Federal Aid Roads Agreement, which expired yesterday. Honorable senators may be assisted in the consideration of the new agreement if I refer briefly to the principal provisions of the original agreement.

The original agreement took effect from the 1st July, 1926, and was designed to cover a period of ten years. It provided for the distribution of £2,000,000 per annum among the States, on the basis, approximately, of threefifths population and two-fifths area, with a special concession to Tasmania. Tasmania actually received a flat 5 per cent., the balance being allocated on the three-fifths - two-fifths basis mentioned. The States contributed £1,500,000, which was equivalent to 15s. for every £1 contributed by the Commonwealth, and in addition, made a 3 per cent. Sinking Fund payment on any loan moneys used by them for their contribution. The grant under the agreement was useable on the construction and reconstruction of main, trunk and arterial roads, but not on their maintenance, and the work had to he carried out to the satisfaction of the Minister for the Interior. Such, briefly, are the principal provisions of the original agreement.

As from the 1st July, 1931, the agreement was revised and extended by six months from the 30th June, 1936, to the 31st December, 1936. The revised agreement provided that, instead of £2,000,000 per annum being paid to the States, payment should be made at the rate of 2½d. a gallon of customs duty and l½d. a gallon of excise duty. The contribution by the States of 15s. for each £1 contributed by the Commonwealth was repealed, and the States were relieved of the obligation to make any contribution. Further, the grant could be used for the construction and re-construction, repair and maintenance of any class of roads, and no provision was made for the oversight of work by the Commonwealth.

For the convenience of both the Commonwealth and the States it was agreed last year to extend the period of the existing agreement to the 30th June, 1937. Up to and including to-day, the various agreements have, therefore, covered a total period of eleven years.

The payments to all the States in each of the eleven years covered by agreements operating to the 30th June, 1937, are as follows: -

The amounts paid to each State during the last four years have been as follows : -

I come now to the new agreement contained in the schedule to the bill, which is entitled the “ Federal AidRoads and Works Agreement “ and is to cover a period of ten years from the 1st July, 1937. The grants to the States from the petrol duties may be expended as under the old agreement on the construction, reconstruction, maintenance or repair of any roads, and, in addition, on other works connected with transport. No contribution is required from the States. The agreement also provides for the reduction of the rate of sinking fund contribution on loan moneys used between 1926 and 1931 from 3 per cent, to 2½ per cent.

As previously stated, payments to the States under the 1931 agreement were made at the rate of 2½d. a gallon of customs duty and lid. a gallon of excise duty. The new agreement provides for the payment of 3d. a gallon customs duty and 2d. a gallon excise duty. This increase, it is estimated, will increase the total grant to the States in 1937-38 by at least £600,000 per annum. In following years it will probably be worth more in proportion to the normal increase of the use of petrol.

The rates of duty imposed on petrol and their allocation between the Commonwealth and States under this agreement will be as follows: -

In respect of benzol the excise duty is lid. a gallon only. The whole of the present benzol duty is therefore already payable to the States and no increase in respect of this item is possible.

I have given sufficient information to enable honorable senators to appreciate the contents of the agreement, which should prove acceptable to the States and will, I feel sure, meet with the approval of honorable senators.

Senator BROWN:
Queensland

-The Labour party will offer no opposition to this bill, under which additional assistance amounting to £600,000 will be given to the States from the proceeds of the petrol tax. I have no doubt that the State governments would have been happier had the whole of the proceeds of the tax been made available to them. A constant struggle is proceeding between the Commonwealth and State governments over finance, and some State governments are not yet able to balance their budgets. In fact they will not be able to do so until there is a re-adjustment of the financial relations of the Commonwealth and the States. However, as the States will receive an additional £600,000 annually for the next ten years under this agreement, it has proved acceptable to them.

The conditions of the new agreement are more liberal than those of the old. for it is provided that -

All moneys paid to the State from the sums’ provided under sub-clause (2) of clause 2 of this agreement shall be expended upon the construction, re-construction, maintenance or repair of roads or other works connected with transport as the State may think fit.

That paragraph is so broad in its terms that it might be better to hand the money to the States without any stipulations at all. I understand that the present Attorney-General (Mr. Menzies) ^argued on one occasion in a law case that the Commonwealth Government had no power to make stipulations in respect of moneys made available by it to the States, but apparently the system has been continued for so many years that it has been more or less accepted. The original agreement was much more rigid than that now before us, for it provided -

For the purposes of this agreement the following classes of road shall bo deemed to he federal aid roads: -

Main roads which open up and develop new country:

Trunk roads between important towns ; and

Arterial roads to carry the concentrated traffic from developmental, main, trunk, and other roads.

It, was found that such restrictions were unworkable and the conditions were liberalised to cover the maintenance as well as the construction of roads. “Under the new agreement, the State governments will be permitted to use the money for works connected with transport. A good deal of bitterness was engendered in certain quarters by the earlier restrictions placed upon the use of the proceeds of the petrol tax. I have no doubt that all honorable senators have had letters addressed to them from a certain organization relating to the fishing industry. This aspect of the subject has inspired many questions in the House of Representatives with the object of securing the consent of the Government to the use of a portion of the proceeds of the tax to provide .extra facilities for those engaged in the fishing industry.

Senator Sampson:

– What about those engaged in aviation?

Senator Hardy:

– And also those who use petrol in tractors in primary industries?

Senator Foll:

– Kerosene is usually used in tractors.

Senator BROWN:

– Will the Leader of the Government inform me whether, in his opinion, a proportion of the proceeds of the petrol tax could be used, as desired by those engaged in the fishing industry, in the building of harbours and havens and the construction of beacons?

Senator Sir George Pearce:

– We believe that that would be a fair use of the money, because such works are connected with transport. Obviously, the motor vessels used by the fishermen are a form of transport.

Senator BROWN:

– And I take it that the construction of beacons would also come within the provisions of the agreement?

Senator Sir George Pearce:

– As the road is used by the motorist so the haven is used by the fishermen.

Senator BROWN:

– That is perfectly clear to me, and I accept the right honorable gentleman’s assurance on the point; but I have little doubt that Senator Johnston, like Shylock, will insist upon the bond. ‘

I am pleased that the conditions governing the expenditure of this money have been liberalized, so probably every honorable senator will be satisfied.

Senator Sampson:

– Including Senator Johnston ?

Senator Johnston:

– I shall support Hie bill.

Senator BROWN:

– -Then unity is achieved in the Government parties, as in the Labour party, in connexion with this measure. I felt sure that we should have some opposition to the bill from Senator Johnston, for, like the Irishman, he was born to oppose the Government.

I notice that the President of the Rational Roads and Motorists’ Association (Mr. J. C. “Watson), offered some criticism in a statement published in the Sydney Morning Herald a few days ago. He said -

In the last nine years the Commonwealth had collected £44,080,214 in the petrol tax, but had paid only £10,114,770 to the States, leaving £24,905,435 to be paid into the Federal Consolidated Revenue. “ Virtually, therefore,” Mr. Watson said, “ the Federal Government has taken approximately £25,000,000 of the motor-users’ money for ordinary expenditure and will continue to take close on £5;000,000 of the motorists’ money every year unless the sufferers can force a reduction of the impost.

Senator Hardy:

– That statement was made on the assumption that the tax was imposed originally for the purpose of road construction, whereas it was actually imposed for revenue purposes.

Senator BROWN:

– That is so, but the motorists were led to believe that all the money derived, from the tax would be expended on roads. I am glad that the submissions of those engaged in the fishing industry have been favorably considered, but sympathetic attention should be given to the views of aviators, farmers who use tractors, and also the State governments, which use considerable quantities of petrol in motor trains. I have no doubt that the opportunity will be taken by some State governments to apply part of their proportion of the proceeds of this tax to railway purposes. It will probably be a great help to them to be able to do so.

The Opposition will support the bill, which I hope will have a speedy passage.

1293

Senator HARDY:
New South Wales

.- While I do not hesitate to give my support to this measure because it has been unanimously approved by the Commonwealth and State governmental authorities, I wish to otter for the consideration of .the Government, certain comments dealing more or less with the future. I question whether it will be possible for the agreement to be continued in its present form without amendment for the full term of ten years.

I compliment the authorities responsible for the drafting of the agreement upon one very sound feature of it - the economic planning which underlies it. Such planning is very adaptable to road work. I have advocated on more than one occasion in connexion with other activities of the Government, but particularly regarding the Council for Scientific and Industrial Research, that trust funds should be established with sufficient backing to enable the adoption of a long range policy extending beyond the term of a particular government. Such important activities associated with our national economy should not be at the mercy of a particular government, but should be so arranged as to ensure continuity over a term of years. This agreement will give such continuity. As one who has had some practical experience of road construction - for I am connected with several road making and ‘bridge building companies - I have been convinced of the wisdom of a long range policy in this regard. Honorable senators will readily appreciate that companies are able to accumulate efficient plants if assured of continuity of operations. This* in turn, reduces costs and makes for more effective work and substantial development. Any one connected with the main roads board of any State will readily admit that the boards have frequently been forced to work spasmodically, by what might be called catch-as.catch-cam methods, because they have not been assured of a regular supply of money. This means that costs are higher than they ought to be. The present agreement deserves the approval of honorable senators because it envisages a long range plan, which will allow the

States to develop their roads at a minimum of cost. The extent of the road problem is rarely realized. In New South Wales nearly 250,000 motor vehicles are operating on 120,000 miles of roads - of which 15,000 miles are trunk or main roads; only 3,000 miles of roads of the total could strictly be classed as developmental. It will be seen, therefore, that it is essential for that State to be able to have a road development programme with assured finances for many years ahead.

Senator Herbert Hays:

– Provided that the burden is not too heavy, and the plan does not prejudice other industries.

Senator HARDY:

– Yes, and the burden of the petrol tax could be relieved by the provision of better roads which would lead to the operation of an increased number of motor vehicles; thus, without reducing the aggregate collection, the rate of the tax could be lowered and so relieve the burden on the individual user. The provision of good roads is immediately followed by a tremendous development of motor traffic. That can be seen in the mounting revenues of the Commonwealth from the taxation of motorists.

Senator Brown:

– What about the railways?

Senator HARDY:

– I admit that the railways are a problem, but at the moment I am not referring to that aspect. In- 1926-27, when the petrol tax was instituted, the collections amounted to £1,646,000, whereas it is estimated that collections in the year 1936-37 amounted to £8,500,000, which is a tremendous increase in the space of ten years. That increase is due not so much to the increase of the amount of the duty, as to the increased use of petrol in the larger number of motor vehicles which have been placed on the roads following the adoption of a vigorous roads development and improvement policy. Out of the £54,000,000 that the Commonwealth Government has collected from the petrol tax, only £24=,000,000 has been paid to the States. Whilst at the moment -I do not advocate that a greater contribution should be given to the States, I point out that the more money that the Commonwealth can give to the States for roads development purposes, the more possible will it be for the Commonwealth to reduce the actual rate of the tax, because, with an increased number of motor users, the tax itself will be spread over a wider field.

Senator Herbert Hays:

– And the greater will be the loss on the railways.

Senator HARDY:

– I do not say that. There must be a reasonable degree of coordination between road transport and railways. We have that problem in the Riverina. Recently there have been many instances in which common-sense has been lacking.

Senator Herbert Hays:

– That is my point.

Senator HARDY:

– I foresee the time when it will be necessary to amend the terms of this arrangement. The agreement relates to funds to be raised by a tax upon petrol and other petroleum and shale products, which are specified. The term of the agreement is ten years, but, in my opinion unless the agreement is so amended as to embrace oil fuel, such as is used in the diesel engine, the expectations of revenue from the petrol tax will not be ‘realized. What is going to happen if the consumption of petrol and allied products, instead of increasing, decreases? I concede that that question would appear to be in direct negation of what I said previously when urging a better road development policy, which would increase road transport, but an evolution is taking place in the heavier transport field; in other words, diesel engines, the fuel of which is tax free, are displacing petrol engines. To-day, there exists the ridiculous anomaly of two heavy trucks running side by side, one paying the tax, and the other not. Imagine two huge fully loaded trucks competing against each other, one being equipped with a diesel engine which uses tax-free oil fuel, and the other with an ordinary- petrol engine which uses a spirit upon which tax- is payable! Nothing can prevent the trend away from the petrol engine to the diesel engine, and, if the Common wealth Government is to maintain the petrol tax and disbursements therefrom to the States, not at an increasing level, but at the same level as exists to-day, it must face this rising problem. It must be prepared, either to levy a tax on oil fuel, and thereby put it on a par with petrol, &c, or reduce the tax on petrol.

Senator Dein:

– Is oil fuel free of tax?

Senator HARDY:

– Yes.

Senator Crawford:

– In Britain last year, a tax of 4d. a gallon was imposed on oil fuel.

Senator HARDY:

– That is so. In New SouthWales to-day, there are 400 transport vehicles equipped with diesel engines. Not only does oil fuel pay no tax, but the consumption of it is approximately one-third less a mile than the consumption of petrol. That is to say that if two vehicles, one petrol-driven and the other diesel-driven, journeyed from Canberra to Albury, and the first vehicle used nine gallons of fuel, the second would use only six. A census of heavy transport vehicles of two-ton capacity or more, which was taken recently in Germany, showed that 82 per cent, of the lorries and other transport vehicles, including ‘buses, are powered with diesel engines. Economic pressure will sooner or later result in the same state of affairs in Australia. The diesel engine is more efficient for several reasons other than the fact that it uses one-third less fuel than isused in a petrol engine. When this evolution does occur - I do not say that it will occur now, or, indeed, within two or three years, but it will occur sooner or later - the Commonwealth Government must take action to protect its revenue, and to allow the contributions to the States to be on an increasing scale.

Senator E B JOHNSTON:
Western Australia

– I support this bill, and also the ratification of the agreement with the more pleasure, since this is about the only federal law which gives any real recognition to the difficulties of governing a huge State like Western Australia, which has an area of one-third of the whole continent, with only one-sixth of the population of the Commonwealth. It is interesting to recall the history of the recognition of the principle of taking the area of States as well as their population into consideration in the distribution of this grant. This recognition we, in Western Australia, owe entirely to the broad vision of Mr. S. M. Bruce, one of our greatest statesmen. If I remember correctly, I was on the platform at the meeting at which Mr. Bruce put this proposal before the people of Western Australia for the first time. The position has altered a little to-day, because although the Commonwealth Government is still collecting the tax of 7¼d. a. gallon on petrol it is now giving 3d. a gallon to the States for roads and transport instead of 2½d. as in the past. I am glad, too, that the Commonwealth Government has decided that the extra id., yielding this year about £600,000, and in succeeding years probably more, can be devoted by the States to all work in connexion with transport. That means aeroplanes, aerodromes and approaches to fisheries, and probably other users of stationary engines, lighting plants and other petrol consuming units, will also benefit, as the State government will have power to assist those persons who contribute so heavily to the petrol tax. I would have had no objection to the provision in the understanding reached at the conference of Commonwealth and State Ministers in August last that forestry also could have been assisted from this fund. I believe that the less limitations we place on the State governments as to the expending of any moneys allotted to them, the better. I say that, irrespective of the political outlook of the State government for the time being in office. Complaints have been made in some States, but taking the long view they can more easily be remedied by the electors than can federal errors. When the Federal Aid Roads Agreement was first entered into, the Federal Government prescribed the conditions under which the money paid to the States could be expended ; and because those conditions were not always applicable to the. needs of the States much of the money was wasted. In his policy speech before the last election the Leader of the Country party (Dr. Earle Page) advocated that the amount to be paid to the States from the petrol tax should be doubled. He suggested that the States, instead of being paid 2½d. for every gallon of petrol used, should be given 5d. I am sorry that that policy was not acceptable to the Government, but I am glad that an additional £600,000 is to be paid to the States.

Although the petrol tax was levied ostensibly for the improvement of roads a large proportion of the money derived from it is still used to augment the general revenue of the Commonwealth. Even with the increased benefits provided by this agreement, the States will receive only 3d. a gallon, whilst the Commonwealth will receive 4£d. a gallon from petrol tax and primage. I should like to see the whole of the proceeds of the petrol tax paid over to the State governments; failing that, the burden which now falls on motorists and transport services generally should be reduced. In view of the huge revenues of the Commonwealth and its succession of surpluses the amount that goes into Commonwealth general revenue is altogether too great. I do not desire that the tax be reduced at the expense of the States, but I hope that after this agreement has been ratified the tax on petrol will be reduced substantially. Today it is an unjust burden on transport. It is my experience that money handed to the State governments for the improvement of roads has produced far better results than the much larger amounts retained for federal purposes. One has only to travel along .the roads in any part of Australia to realize the great improvements that have taken place as the result of the expenditure of money made available to the States under the Federal Aid Roads Agreement.

Senator LECKIE:
Victoria

– I shall not oppose the bill, but I point out that one phase of the Federal Aid Roads Agreement appears to have been lost sight of. For many years senators from Western Australia have complained of the ill effects of federation on that State, and have contended that nearly all the benefits of federation have been enjoyed by the manufacturing States in the eastern portion of the continent. This agreement, however, proves the converse because, since the distribution of the money is to be made on the basis of three-fifths population and two-fifths area, Victoria will contribute about £500,000 a year towards the construc tion and maintenance of roads in the other States.

Senator ALLAN MACDONALD:
WESTERN AUSTRALIA · UAP; LP from 1944

– Does the honorable senator begrudge that contribution ?

Senator LECKIE:

– No; but I am amazed that there has been no expression of gratitude on the part of the recipients. I do not know how long Victoria can continue to act so generously towards the other States. Only because the people of Victoria have an all-Australian outlook are they reconciled to this agreement, which requires their small State to assist the poorer and larger States to provide good roads. I am not convinced that the distribution is equitable. It is a moot question whether Victorian motorists and other users of petrol should contribute money for expenditure on roads, in distant parts of the Commonwealth. One would at least expect the people of those other States to be grateful to Victoria. I imagine that New South Wales, because of its large area and big population, will break about even; but Victoria certainly will pay away more than it receives. In proportion to its size, Victoria has not so many bad roads as have some of the other States, but that is not to say that there are no bad roads in Victoria. Its better roads generally are due to thar State having made an earlier start with a policy of road improvement. We hear much of the industrial States living on the primary producing States, almost as though the former were parasites ; but wo hear little of contributions by the industrial States to the others. I bring this e matter forward so that the public may know that Victoria is willing to follow an all-Australian policy even at some cost to itself.

Senator ALLAN MACDONALD:
WESTERN AUSTRALIA · UAP; LP from 1944

– I hasten to assure Senator Leckie that there arc many people in Western Australia who will appreciate the passing of this measure. 1 myself am pleased that representatives of the States and the Commonwealth have been able to reach agreement, as a result of which this measure has been made possible. In common with South Australia and Queensland, Western Australia will benefit greatly from the extension of the Federal Aid Roads

Agreement for a further ten years. Senators from Western Australia appreciate the fact that the industrial States of Victoria and New South Wales have agreed that the money shall be distributed on a basis which takes into consideration area as well as population. Money made available to the States under the agreement has not always been wisely expended. In 1927, just prior to the first election after the Federal Aid Roads Agreement became operative, it was a common sight to see hordes of itinerant workers moving from one portion of the State to another but, however, carrying no tools for the construction of roads. One cartoonist depicted them with fountain pens over their shoulders and electoral enrolment cards in their hands. The main purpose of the Government of (he day in moving them from place to place was to ensure that they would he in certain electorates 31 clear days before the closing date for nominations. Senator Johnston may call that a faildistribution of the funds by State governments, but I have another name for it. That election campaign was not singular in that respect, for the same tiling has happened during other election campaigns. In my opinion, it is a wrongprinciple for a taxing authority to hand over its revenues to be expended by another authority. Unfortunately, the direct disbursement of thi.3 money by the Commonwealth in the several States would mean the creation of a huge Commonwealth organization in addition to existing State organizations. The time is not yet ripe for the taxing authority to.be also the spending authority. However, I hope that the State governments will not again try to manipulate these funds as some of them have done in the past.

We hear a great deal about the heavy burden placed on motorists by the Commonwealth, but very little of the taxes levied on them by the States. Every criticism relating to the taxation of the motor industry is an attack on the Commonwealth, not on the States. On every petrol bowser, from one end of Australia to the other, the disc which notifies the price of petrol announces that it includes 7^d. Commonwealth petrol tax. Such propaganda has the effect of making the ordinary individual who has the misfortune to own a motor car believe that the Commonwealth Government is the bugbear.

Senator Sampson:

– The Commonwealth gets the odium and the States the kudos.

Senator Leckie:

– The ordinary motorist, who uses his car principally at week-ends, pays into the coffers of the Commonwealth little more than half of the amount that he pays to the State government as registration fees. Although much is said of the heavy burden placed on motorists by Commonwealth taxation, little or nothing is said about the fees payable by them to the States.

Senator BROWN:

– As it happens, there are many words said about them.

Senator ALLAN MacDONALD.Not in comparison with the volume of words which is hurled at the Commonwealth Government in connexion with the imposition of the petrol tax. Having been a motorist for many years, I am aware that the odium which is incurred by the Commonwealth Government on this account is out of all proportion to the rate of the levy. I say that who am not a believer in the imposition of a high petrol tax.

Senator Sir GEORGE Pearce:

– What is the registration fee for the average motor car?

Senator ALLAN MacDONALD.In Western Australia the registration fee for an ordinary motor car ranges between £9 and £10 per annum. The average motorist who uses only six or eight gallons of petrol a week would not pay in the course of a year, any more by way of petrol tax than the annual registration charge, but emphatic objection is seldom raised against the latter imposition which is levied by the State governments. Senator Johnston heaped lavish praises upon the States for their wonderful administration of Federal Aid Roads funds; in the meantime they wear a satisfied smirk, because they obtain the money and avoid the odium of collecting it by taxation. Nevertheless their high fees are amongst the factors which give rise to the agitation by motorists against excessive taxes.

Senator Brown:

– The average motorist would pay in petrol tax anything from £15 to £50 a year.

Senator ALLAN MacDONALD.In order to do so, such a person would have to drive his car 24 hours of the clay. I have travelled long mileages in Western Australia but I have never paid so much as £50 per annum in petrol tax. Some attention should be drawn to the high rate of tax -which is imposed by the State authorities on motorists in order that, by way of welcome change, the Commonwealth Government may be given a little kudos for the expenditure of money on roads. Up to date, however, it has received nothing but knocks, and it will continue to get them while’ the present system under which the taxing authority hands over the funds to theStates, is maintained. If that system continues we cannot hope to cure the existing anomalies without the creation of a costly federal spending authority in each of the States, and the population of Australia would not warrant the expense of that. I hope that the State authorities will spend the proceeds from the petrol tax in the most advantageous direction. If it be possible to reduce this tax in the near future, the States should also be requested to make a reduction of the charges which they levy upon the motoring community. It is my earnest desire that in the next budget the motorists will be granted some relief from the heavy burden of taxation ; because everybody seems to delight in taking a pot-shot at them. A reduction of the petrol tax should be made at the first appropriate opportunity, but I suggest that the Commonwealth Government should make such a reduction conditional upon an equal reduction of registration fees being made by the State authorities. If the States cannot be in that way prevailed upon to give the motorists relief, this already excessivelytaxed section will never obtain relief. The States should also be compelled to share some of the odium caused by the imposition of the petrol tax; all the criticism in this respect should not be borne by the Commonwealth Government.

Senator Sir GEORGE PEARCE (Western Australia - Minister for External Affairs) [11.5] - in reply. - In referring to the probable increase of the use of oil fuel in road vehicles,

Senator Hardy raised a matter of considerable interest. This subject has given some concern to the Commonwealth Government in connexion with this matter, and I have obtained some information which should be of interest to honorable senators. An endeavour has been made to estimate the growth of the use of oil fuel in road vehicles, and the Government has been able to secure information relating to the position in all States, with the exception of Queensland. The following table indicates the increased use of oil fuel during the last 2£ years: -

Senator Leckie:

– Do those figures relate to motor vehicles on roads?

Senator Sir GEORGE PEARCE:

– Yes.

Senator Leckie:

– How was the distinction made between fuel used by motor vehicles on roads and that used in industrial plants?

Senator Sir GEORGE PEARCE:

– As the result of its investigations the Government was able to separate the two classes.

Information in respect of the number of road vehicles using oil fuel has also been secured. The details are shown in the following table: -

Senator Hardy:

– The motor manufacturing companies are producing this year a light diesel truck for use on roads.

Senator Sir GEORGE PEARCE.That is so. On an average, 22 gallons of oil fuel will replace 50 gallons of petrol. On this basis, if, for the first six months ended the 31st December last, 977,000 gallons of imported petrol dutiable at 7d. a gallon had been used instead of the 429,848 gallons of oil fuel the revenue would have benefited to the amount of £28,500. The most recent development was the announcement yesterday of the advent of a British 2-2½-ton and 3-4- ton truck with a diesel engine which will be sold in Australia for less than £500; that is less than half of the cost of a similar vehicle hitherto. The company which is marketing the truck claims that on an annual running distance of 30,000 miles the saving of fuel costs with a diesel truck will be approximately £110. The Department of Trade and Customs has had the matter of the displacement of petrol by crude oil, owing to the increasing use of diesel engines for road transport, constantly before it for some years, and the subject will continue to receive consideration.

In view of what are sometimes extravagant statements made in regard to the. amount of revenue derived by the Commonwealth from petrol duties, I desire to place on record the following comparison of the amounts collected annually from this source since 1926, with the amounts actually paid to the States during those years: -

The balance, which is the amount of petrol tax retained for the general revenue purposes of the Commonwealth, is shown as follows-

Petrol duties are levied for two purposes : First as a general revenue tax for Commonwealth purposes, and secondly to provide moneys for roads and other transport purposes of the States. In imposing this tax the Commonwealth is not singular. The Government of the United Kingdom and the Government of New Zealand impose a tax on petrol for general revenue purposes, and I am informed that the tax in New Zealand is about10d. a gallon. Although I have not specific information in regard to the petrol tax in the United Kingdom, I can assure honorable senators that it is heavy.

Senator A J McLACHLAN:
SOUTH AUSTRALIA · NAT

– It is 8d. a gallon.

Senator Sir GEORGE PEARCE:

– In New Zealand, the petrol tax is nearly 50 per cent, greater than the Commonwealth tax.

Senator Brown:

– What is the tax in the United States of America?

Senator Sir GEORGE PEARCE:

– I endeavoured to obtain that information this morning, but was unable to do so. I am gratified that Senator Johnston is pleased that the Commonwealth Government is carrying on the principle of distributing this grant on the basis of threefifths population and two-fifths area. I am well aware that the honorable senator stated that the credit for this arrangement rests solely with Mr. S. M. Bruce. While I do not desire to take away any of the credit from that gentleman, who was the head of the Government which introduced the arrangement, I avail myself of this opportunity to inform the Senate that 1 happen to be the Minister who first brought this matter under the notice of the Bruce-Page Government.

An Honorable Senator. - Hear, hear !

Senator Sir GEORGE PEARCE:

– I urged the adoption of this arrangement for a considerable time before I was able to convince my colleagues of its merits. I am gratified to discover that, for once at any rate, I have done something of which Senator Johnston approves.

Question resolved in the affirmative.

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

page 800

SUPPLY BILL (No. 1) 1937-38

Assent reported.

page 800

PRIMARY PRODUCERS RELIEF BILL 1937

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator BRENNAN:
Assistant Minister · Victoria · UAP

– I move -

That the bill be now read a second time.

The bill is to amend section 5 of the Primary Producers Relief Act 1935-36, which relates entirely to the closing date for the receipt of applications for the subsidy of 15s. a ton, payable to primary producers in respect of artificial manures used during the year ended the 30th June. 1 936, in the production of primary products other than wheat. A condition of the payment of the subsidy is that the primary producer has, upon application lodged by him with the secretary of the Department of Commerce on or before the 31st day of December, 1936, obtained a certificate in writing from the secretary of that department that the primary producer has furnished satisfactory evidence that he has used the quantity of artificial manure stated in the certificate. The point involved is that a number of applications signed by the primary producer on or before the 31st December were not, in fact, received within the time specified in the act. Although applications were posted within the time prescribed in the section, they were not received by the Department of Commerce. Apparently, a number of persons relied upon the three days’ grace which is common in commercial transactions. The Government, having considered the position, has decided to amend the act, and the department will now accept the applications, the declarations in respect of which were completed on or before the 31st December, 1936, hut which were actually received by the department after that date. Some have inquired as to what became of their applications, and a search of the records has disclosed that such applications were not received by the department. If such applications were forwarded - there were quite a number - they must have gone astray. Applications pass through a number of hands and some may have been lost. This class of person is also being met by the insertion of a provision that, if the Minister is satisfied that an application was signed before the 31st clay of December, it shall be accepted. In all, about 420 claims will be affected by the bill, and the amount of the subsidy involved will be approximately £1,350.

Question resolved in the affirmative.

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

Sitting suspended from 11.20 a.m. to 4.10 p.m.

page 800

INVALID AND OLD-AGE PENSIONS APPROPRIATION BILL 1937

Assent reported.

page 800

JUDICIARY BILL 1937

Bill received from the Houseof Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator BRENNAN:
Assistant Minister · Victoria · UAP

– I move -

That the bill be now read a second time.

This is a short bill, relating only to rules of court made by the justices of the High

Court to regulate proceedings in that court. As honorable senators are no doubt aware, the High Court has a general jurisdiction, derived partly from the Constitution and partly from the Judiciary Act. The High Court Procedure Act of 1903 contained a comprehensive set of rules designed to regulate this general jurisdiction. From time to time, however, the High Court has been invested with jurisdiction over particular matters arising out of Commonwealth acts. As honorable gentlemen will know, many Commonwealth acts contain provisions vesting a rule-making power in some body. Thus, provision is made in the various taxing acts for appeals to the High Court. Some of the acts conferring special jurisdiction on the High Court empower the justices to make rules of court in relation to that jurisdiction, and in some instances provide for the tabling and disallowance of rules.

The provisions as to the tabling -ind disallowance are not, however, uniform with the corresponding provisions in the High Court Procedure Act and the Judiciary Act. Rules made under either of those acts are to be tabled in both Houses of Parliament within 40 days of their being made, if Parliament is then sitting, or, if not, then within 4)0 days of the next meeting of Parliament. In the more recent acts conferring special jurisdiction, the provisions relating to tabling are similar to those governing the tabling of regulations. The original provisions as to the tabling of regulations were somewhat similar to those at present in force with regard to rules under the High Court Procedure Act and the Judiciary Act, but experience proved that those original provisions bristled with difficulties and, in consequence, the law was amended in the form now contained in section 10 of the Acts Interpretation Act 1904-1934. It seems desirable that the legal position with regard to the tabling and disallowance of rules of court should be brought into line with that respecting regulations, and one of the amendments contained in the present bill has that object in view.

Another amendment authorizes the justices to make, under the Judiciary Act alone, instead of under several acts as heretofore, rules relating to all phases of the jurisdiction of the High Court. In consequence of this amendment, the provisions of several other acts as to the making of rules will be no longer necessary. Accordingly, clause 4 and the schedule provide for the repeal of those provisions. Briefly, the effect of clauses 2 and 4 and the schedule of the bill is that rules of court governing the jurisdiction of the High Court in all its aspects will, in future, be made under one act only - the Judiciary Act - and not under the Judiciary Act and the High Court Procedure Act, or under each of the several acts conferring special jurisdiction.

In commending the bill to honorable senators, I desire to point out that it is of a procedural nature only, and does not give to the justices of the High. Court any greater rule-making power than that conferred upon them under existing law. It is desired by the court that the bill be passed as speedily, as possible.

Question resolved- in the affirmative.

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

page 801

MEDICAL RESEARCH ENDOWMENT BILL 1937

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator BRENNAN:
Assistant Minister · Victoria · UAP

– I move -

That the bill be now read a second time.

This is a measure of the utmost simplicity, but as it has been put to me, its force consists in that it stands for one of the greatest of human pursuits - the pursuit of knowledge. Its title declares its purpose.

It is a bill to enable and to regularizethe expenditure of money upon organized research into medical problems. It provides simply for the establishment of a fund into which shall be paid money received from two sources, viz.. the money appropriated by Parliament from year to year, and money received from private donations, or bequests, or other external sources.

The fund will be administered by the Minister on the advice of the National Health and Medical Research Council, and the money shall’ be expended in the assistance of Commonwealth or State departments, universities, institutions and persons engaged in medical research, as well as for the training of persons in medical research.

The National Health and Medical Research Council is the most representative and ‘authoritative body which could have been brought together in Australia. The Commonwealth Director-General of Health is chairman, and two other officers of the Commonwealth Department of Health are members. The council includes also the Chief Medical Officer of each State, a nominee of the College of Surgeons, va nominee of the Association of Physicians, and a nominee of the British Medical Association. The four universities having medical schools jointly nominated one representative, and the Minister has appointed a prominent layman and a prominent laywoman. The council has already submitted a scheme for research which is excellently adapted to Australian conditions. The first report of the council refers to this scheme, in the carrying out of which the council does not consider that any new institutions or buildings are at present necessary. Consequently the money available, under the fund established by the bill will be devoted to the encouragement of research workers in Australia, and to the training of young medical graduates and other science, graduates in various aspects of medical research.

While it has been’ possible in the past for’ Australian research workers to make contributions to research of considerable value and magnitude, these have been spasmodic, and our unfortunate experience has been that a large number of young brilliant medical graduates who went abroad to pursue medical research, have become so distinguished for their work in laboratories and institutions there that they have accepted financial inducements to remain overseas. Thus their services have been permanently lost to Australia. The sequence of these has been continuous and their numbers have been considerable.

Our design under this new system to be instituted following the passage of this bill, is to offer such encouragement as will induce the majority of these workers to remain in Australia. I need only mention that, following Lord Nuffield’s magnificent gift of over £1,000,000 to the University of Oxford for the purpose of establishing new avenues of research at that great university, two of the most prominent positions on the inaugural staff have been allotted - one to a New Zealander and one to an Australian.

I have said that Australia can point to a record of material contributions to knowledge in the past. Reference may be “made to some of these. The control of miner’s, phthisis has been largely built up on work done in Australia. The knowledge relating to hydatids comes almost exclusively from Australia. Contributions to the surgery of goitre have advanced the treatment of this disease very greatly during the last twenty years. Contributions of the late Dr. Harris to genito-urinary surgery are recognized all over the world. The work done at the Walter and Eliza Hall Institute on snake venoms is now recognized in all countries as classical. This list might be extended, but it is more important to invite attention to the fact that some of our very serious and pressing problems have not yet been touched. With all the medical knowledge available to us, we cannot be sure that we hold any golden key in relation to the great variety of diseases which fill our hospitals. We must have, on the one hand, better knowledge of the treatment of the early conditions of ill health, enabling us to arrest them before they proceed so far that hospital treatment becomes necessary; and, on the other hand, we must have the dissemination of knowledge of simple laws, of health so that the people themselves will render to their medical services that cooperation between patient and doctor without which treatment is largely useless. It may not seem to the observer that a close study of the enzymes and fermentation agents stored up in the sweetbread of the ox has much relation to practical problems, but, as was pointed out in the House of Representatives; it was from much long and patient work in this field that insulin was discovered. A prolonged and difficult research into the chemical substance produced by various methods of treatment of rare chemicals derived from coal tar may seem to be a chemical problem very remote from problems of human disease; yet it was by this route that we secured modern treatment of syphilis, of sleeping sickness and of malaria, and by the same route we are gradually approaching real knowledge in respect of the production of. cancer. The bill, we hope, will permit of the establishment of a concerted programme of research which will include three main phases: social research, clinical research, and laboratory research. Gradually, we hope to build up such a progressive accumulation of knowledge as will have important benefits for the Australian people. The necessary correlation between these various aspects of research work will be ensured by the composition of the body which will have the supervision of the programme - the National Health and Medical Research Council - the personnel of which I have already described. I commend the bill to the Senate.

Senator BROWN:
Queensland

– The Opposition will not oppose this bill to establish a medical research endowment fund. The Assistant Minister (Senator Brennan) made no reference to the amount of money which will be required for that fund.

Senator Sir George Pearce:

– As much as can be obtained.

Senator BROWN:

– We are to establish the fund ; the obtaining of the money will be a subsequent stage. I suppose that the money will be well spent ; but the thought crossed my mind that it might be unnecessary to establish a new organization if the Council for Scientific and Industrial Research, under the control of the Minister in change of development, could undertake such work.

Senator A J McLACHLAN:
SOUTH AUSTRALIA · NAT

– The Council for Scientific and Industrial Research confines its activities to animals and plants; it does not study the human being.

Senator BROWN:

– But could it not do so? On several occasions, I have spoken about the work of the Council for Scientific and Industrial Research, and the practicability of extending its operations to the human being. I fail to understand why it should be necessary to create a medical research council when the Council for Scientific and Industrial Research might well add medical research to its other operations.

Senator A J McLACHLAN:
SOUTH AUSTRALIA · NAT

– I emphasize that the Council for Scientific and Industrial Research engages in an altogether different kind of science.

Senator Brennan:

– The honorable senator should understand that the National Health and Medical Research Council is already in existence.

Senator BROWN:

– I learned that fact from the Assistant Minister’s speech a few minutes ago. The Medical Research Council will investigate the cause and cure of diseases of the human body. I certainly do not object to the establishment of this organization, although it appears to me in some respects to duplicate the functions of the Council for Scientific and Industrial Research. The Assistant Minister intimated that there will be a certain co-ordination of the research work that is being carried out by different bodies. Such co-ordination and organization will he a definite step in the right direction. Throughout Australia at the present time, investigators are undertaking research work independently of one another; but I assume that the. Medical Research Council will endeavour to correlate their efforts. .

Senator Brennan:

– That is the principal purpose of. the bill.

Senator BROWN:

– I welcome that assurance, because the Labour . party believes in not only economic organization, but also scientific organization in every walk of life. I gleaned from the House of Representatives that a fund of £30,000 will be necessary in order to enable the council to commence its operations; in my opinion such an amount will be little enough. When we are prepared to spend £8,000,000 on the defence of Australia, the sum of £30,000 for medical research looks very insignificant, and I hope that it will be increased at the first opportunity. An urgent need exists for medical research for disease is rampant in Australia. Much of the suffering, the Opposition contends, is due to the lack of balance in the economic system, which brings about poverty. If poverty were abolished, a good deal of disease would also disappear.

Senator Sampson:

– More diseases are caused by over-eating than by undereating.

Senator BROWN:

– Possibly so; but I have in mind the experience of the family of a personal friend who fell on evil times. Both his wife and child contracted a skin disease, and a medical man, whom they consulted in a poorer part of Sydney, gave them a letter of recommendation to enable them to obtain additional relief payments with which to purchase extra supplies of milk and vegetables. After they had enjoyed these extra rations for six months, the woman and child were restored to their former health; the extra relief was withdrawn and both suffered a recurrence of the skin complaint. In conversation with this woman, I was informed that large numbers of women and children in the district in which she lived had contracted the skin affection, which was entirely due to lack of proper food. According to the latest census figures, 2,200,000 Australian breadwinners receive less than £3 a week, and, upon these low wages, they are obliged to provide for the upkeep of over 1,000,000 children. I do not anticipate that this section will come prominently within the purview of the Medical Council. The Minister for Health has stated that 40 per cent, of Australian children are suffering from malnutrition.

Senator Crawford:

– But who believes that?

Senator BROWN:

– Is not the honorable senator prepared to accept the statement of the Minister for Health?

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

– That statement was made on the authority of prominent medical men.

Senator Sampson:

– Malnutrition might mean that the children were eating the wrong kind of food.

Senator BROWN:

– - Extremes of poverty and wealth bring about certain disabilities and diseases. I admit that many children are suffering from malnutrition because of the ignorance of their parents as to what is a proper diet. But no honorable senator, and no intelligent man who has studied the facts, can deny that thousands of children, especially in the larger cities, are suffering from various diseases due directly to the inadequacy of nourishing food. Undoubtedly, there is ample opportunity for the investigation of the Research Council into such matters. Recently, I read a book, Man the. Unknown, by Dr. Carrel. I recommend it to the honorable senators, because the author certainly gives us food for thought, and shows that Ave have much to learn about the human body. Even in regard to subjects about which we believe we are well-informed, Dr. Carrel asserts that our knowledge is meagre indeed.

Senator Payne:

– This is a subject that is almost entirely neglected.

Senator BROWN:

– Yes. We, and other nations also, have been so bent on making profits that man himself has been forgotten. One of the most humane endeavours in the future will be to discover improved methods for the development of the human being mentally and physically. We should scrap some of our machines, if by so doing we could improve the mentality and health of men, women and children. Dr. Carrel states that there have been great gains of health during the last century. While granting that most of the diseases of bacterial origin have been eliminated, he has written : -

The years of life which we have gained by the suppression of diphtheria, small-pox and typhoid, are paid for by the long-sufferings and lingering deaths caused by chronic affections, and especially by cancer, diabetes and heart disease.

I understand that in recent years there has been a great increase of heart disease. Whilst we have overcome the terrors of many old-time complaints which once decimated populations, there is to-day a regrettable increase of diseases of the heart, cancer and diabetes. These afford the Medical Research Council a wide field of investigation. We must endeavour to encourage our intelligent young research workers to discover the causes and the cure of these diseases. The Minister for Health (Mr. Hughes) has stated that there has been a considerable diminution of pulmonary tuberculosis, and that is undoubtedly due to the improved social conditions under which people are now living. The medical profession and students of such- matters admit that better social conditions are a great factor in the eradication of disease, especially pulmonary tuberculosis. For the last 50 or 60 years, members of the Labour party have laid great emphasis upon social reform as an aid in improving the health of the nation. The Minister for Health also stated that there has been a diminution of the birth rate, and an increase of infantile mortality. According to that right honorable gentleman, if the average birth rate that had prevailed between 1911 and 1921 had been continued until June, 1933, there would have been in Australia 350,000 more children under ten years of age. “ These children,” said the Minister, “ would have gladdened the hearts of their parents and in time would have swelled the ranks of the industrial army and helped to develop the country.” Such a statement has a fine ring about it; hut, at the same time, would not those children, upon attaining maturity, have assisted to swell the ranks of the unemployed? That aspect of the matter strongly impressed me. Whilst we are fighting for the eradication of disease, and are hoping for a natural increase of population, we are making no great efforts to ensure that avenues of employment are opened up for those children when they are ready to launch out for themselves in the world. If by this bill we make it possible for disease, to be eradicated and for a greater number of children to develop into healthy adults, shall we be able to provide them with work? Referring to the necessity for medical research, Dr. Carrel stated -

Heart diseases have become more -frequent, ‘ and also diabetes. Tlie maladies of the central nervous system are innumerable. In the course of this life, every individual suffers from nome attack of neurasthenia, of “nervous depression, engendered by constant agitation, noise and worries.

Although modern hygiene has made human existence “far safer, longer and more pleasant, diseases have not been mastered. They have simply changed in- nature. This change comes undoubtedly from the elimination of infections. But it may be due also to modification in the constitution of tissues under the influence of new modes of life.

The National Health and Medical Research Council may discover that much of the disease in this country is due to our altered manner of living. In this connexion, I direct attention to an interesting statement made by Dr. Carrel in reference to the effect of food on the human body: -

Staple foods may not contain the same nutritive substance as in former times. Mass production has modified the composition of wheat, eggs, milk, fruit and butter, although these articles have retained their familiar appearance, chemical fertilizers, by increasing thu abundance of the crops, without replacing all the exhausted elements of the soil, have indirectly contributed to change the nutritive value of cereal grains and vegetables. Hens have been compelled, by artificial diet and mode of living, to enter the ranks of mass producers. Has not the quality of their eggs been modified?

In respect of these matters there is plenty of scope for research into the causes of diseases. It may be found that many diseases are due to the change that has taken place in the processes for the production of food. I commend the bill and hope that it will be possible for this Government, or a future government, to devote sufficient money to the work of medical research.

Question resolved in the affirmative.

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

page 805

ACTS INTERPRETATION BILL 1937

Bill received from the House of Representatives, and (on motion by Senator Brennan) read a first time.

page 805

SUPPLEMENTARY APPROPRIATION BILL 1935-36

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

[4.53]. - I move -

That the bill be now read a second time.

These Supplementary Estimates consist of items of expenditure in the financial year 1935-36 for which no specific approval has yet been given by Parliament, but which were met temporarily from the vote for Treasurer’s advance, pending submission to Parliament. The authority of Parliament was given for this expenditure by the appropriation in the Estimates in chief of a sum of £2,000,000 under the item “Advance to the Treasurer.” This provision, which is in accordance with usual practice, enables the Treasurer to make advances to the various departments’ to meet necessary expenditure which was not contemplated when the Estimates in chief were presented. Details of that expenditure are now submitted for appropriation in the form of Supplementary Estimates. Copies of these Estimates have been circulated among honorable senators. I do not propose to refer to the various items in detail.

Out of the £2,000,000 voted for Treasurer’s Advance was expended £870,281, of which £679,450 was for ordinary departmental services and war services payable from revenue, and £190,831 for additions, new works and buildings.Full details of the expenditure, which is now submitted for approval, have already been furnished to Parliament in the’ Estimates and budget papers for 1936-37. The Estimates show the amounts voted and the amounts actually spent. In cases in which the expenditure is greater than the amount voted, or a new item of expenditure is incurred, it is temporarily provided from Treasurer’s advance pending the parliamentary approval of these Supplementary Estimates. Under the provisions of the Audit Act the Treasurer’s finance statement for 1935-36, containing a statement of amounts to be included in Supplementary Estimates, was forwarded to the AuditorGeneral on the 23rd November, 1936, for report, and that report was laid on the table of the Senate on the 3rd December, 1936.

Question resolved in the affirmative.

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

page 806

SUPPLEMENTARY APPROPRIATION (WORKS AND BUILDINGS) BILL 1935-36

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

[4.59]. - I move -

That the bill be now read a second time.

The purpose of this bill is to seek formal parliamentary approval of the expenditure on public works of the sum of £190,831 paid for out of Treasurer’s advance for the financial year 1935-36. The main item of expenditure is £165,000 for telephone services, including the telephone cable between the mainland and Tasmania.

Question resolved in the affirmative.

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

page 806

PRIMARY PRODUCE EXPORT CHARGES BILL 1937

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator BRENNAN:
Assis tant Minister · Victoria · UAP

– I move -

That the bill be now read a second time.

Under the Primary Produce Export Charges Act 1935, levies are made on apples and pears exported to the United Kingdom and the Continent. The amounts derived from this levy are transferred to the Australian Apple and Pear Export Council, and provide its funds for the various operations which it conducts on behalf of the apple and pear industry, such as advertising overseas, organization of exports, and negotiations with other dominions for the purpose of ensuring orderly marketing of Australian apples on the United Kingdom and other overseas markets.

A further point in regard to this levy is that, by limiting it to apples and pears shipped to the United Kingdom and the Continent of Europe only, some difficulty might arise in the negotiation of commercial treaties with other countries. It might be alleged that differentiation is being made between exports to certain destinations and those to other destinations. Having in mind all these circumstances, the Australian Apple and Pear Export Council has advised the Government that it is desirable to apply the existing export levy of3/8d. a case to all apples and pears exported from the Commonwealth. This will place all our exports on the same footing, and will obviate any suggestion of differentiation, clause 3 of the amending bill now before the Senate gives effect to this recommendation.

In connexion with the exemption of certain products from the charges imposed by the Primary Produce Export Charges Act, the Attorney-General’s Department has advised that it is not possible under the present act to exempt small quantities of any particular commodity affected by the act, nor quantities which are subject to special circumstances. It is desirable that some minimum should apply in regard to the quantities on which levies might be collected. Furthermore, there are certain shipments which are not really the kind of exports on which levy for advertising should be collected. These include ships’ stores, which, it is considered, are legitimately entitled to exemption from the charges. As it is not possible under the existing, act to allow exemptions of the kind mentioned, clause 4 of the amending bill provides for the repeal of the relevant section in the original act, and for the substitution of a clause which will permit the Governor-General to exempt any kind of primary produce to which this act applies from the charges imposed by or under the act.

Question resolved in the affirmative.

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

page 807

PAPER

The following paper was presented: -

Commonwealth Public Service Act - Appointment - Department of the Interior - A. McSweeney.

page 807

SPECIAL ADJOURNMENT

Motion (by Senator Sir George

Pearce), agreed to -

That the House at its rising adjourn till a day and hour to be fixed by the President, which time of meeting shall be notified to each senator by telegram or letter.

page 807

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 807

ADJOURNMENT

Enforced Leave in Military Forces.

Senator Sir GEORGE PEARCE:
Minister for External Affairs · WESTERN AUSTRALIA · ALP; NAT from 1917; UAP from 1931

[5.12]. - I move -

That the Senate do now adjourn.

As I promised honorable senators, I submitted the points raised by them during the debate on the Supply Bill to the Ministers responsible, but I have not received replies to all of them. However, I have received a reply from the Acting Minister for Defence (Mr. Thorby) to representations made by Senator Collett regarding enforced leave taken by members of the permanent Military Forces in 1930 and 1931.. The reply is as follows : -

I have made inquiries into this question, and I find that the introduction of enforced leave without pay for members of the permanent Military Forces in 1930-31 was an immediate consequence of the heavy reduction in the Defence allotment which followed upon the acute difficulty in Government finance which was felt at that time. All the services and branches of the departments were obliged substantially to curtail expenditure, the effects of which were reflected in considerable reductions of personnel strength of all branches. In adopting the system of enforced leave without pay for the Army, the Government of the day acted upon the recommendation of the Military Board which considered that this method was preferable, in the circumstances obtaining at the time, to the alternative of retrenchment, a course which was followed in the Navy andother branches.

Thu Government endorsed the principle that any savings effected in any branch of the department might be applied to the reduction of the period of enforced leave without pay. The procedure dictated by administrative consideration was to make a review of the estimated expenditure at the beginning of each quarter, mid to determine the amount of enforced leave to be taken in the light of the savings in prospect. As a result nf this, ail personnel in receipt of less than £2G0 per annum were exempt from further leave after the second quarter, and enforced leave for everybody was discontinued after the third quarter.

The restriction upon engagement in outside employment by members of the permanent Forces during the period of enforced leave was consistent with the maintenance of their status mid service as members of the Forces, which, of course, was the underlying principle of thi; scheme. lt is a matter for regret that the exigencies nf the financial position in 11)30-31 necessitated such heavy sacrifices by the personnel of thu service, but as the decision of the Government was applied in the manner laid down at thu time, there would not appear to bc any grounds for reviewing it now. If the matter were reopened, far-reaching effects would probably bc also involved in respect of the alternative measures which were taken in the other services and branches to effect reductions in their personnel.

Question resolved in the affirmative.

Senate adjourned at 5.1S p.m. till a day and hour to l>o fixed by the President.

Cite as: Australia, Senate, Debates, 1 July 1937, viewed 22 October 2017, <http://historichansard.net/senate/1937/19370701_senate_14_153/>.

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