Senate
5 October 1945

17th Parliament · 3rd Session



The President (Senator the Hon. Gordon Brown), took the chair at 10.30 a.m., and read prayers.

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QUESTION

SUITS FOR EX-SERVICE PERSONNEL

Senator SAMPSON:
TASMANIA

– Will the Minister for Supply and Shipping state what steps, if any, are being taken to overcome the lack of labour and material for supplying discharged service personnel with civilian suits?

Senator ASHLEY:
Minister for Supply and Shipping · NEW SOUTH WALES · ALP

– Steps have already been taken to speed up the production of civilian suits. A conference was held at Canberra a fortnight ago, and it has already resulted in co-operation between my department and the clothing trade. I think that the position will be considerably improved.

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QUESTION

CANBERRA

Street Lighting

Senator LAMP:
TASMANIA

-Will the Minister representing the Minister for the Interior have steps taken to provide adequate lighting of the avenue leading from Parliament House to the Hotel Kurrajong, without damaging the trees?

SenatorCOLLINGS. - I am not aware that there is any shortage of lights in the avenue referred to. Certainly, I shall not do anything to damage the trees, if that can be avoided. I shall have the matter investigated and advise the honorable senator later.

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PRINTING COMMITTEE

Senator COOPER:
QUEENSLAND

– I present the second report of the Printing Committee. Report -by leave - adopted.

page 6590

STATES GRANTS BILL 1945

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Secondreading.

SenatorKEANE (Victoria - Minister for Trade and Customs) [10.37].-) move -

That the bill be now read a second time.

The object of this measure is to obtain parliamentary approval of the payment during the current financial year of special grants aggregating £2,996,000 to the States of South Australia, Westers Australia, and Tasmania. These payments have been recommended by the Commonwealth Grants Commission is its twelfth report, which was tabled recently for the information of honorable senators. The grants recommendedby the commission for payment this year compare with those actually paid last year as follows: -

The general principle adopted by the commission, in arriving each year at the special grants which is recommends be paid to these States is that they should be sufficient to meet their financial needs. At the same time, the commission has emphasized in its reports from time to time that no fixed formula can suitably be applied to the assessment of special grants, and that the methods employed must be sufficiently flexible to meet changing circumstances. Accordingly, the commission has made certain changes in its methods during the war years, and has made several relaxations in favour of the claimant States in its twelfth report.

The methods adopted by the commission in arriving at the grants recommended for payment in 1945-46 tookinto account two main considerations. In the first place, the commission assessed the grants on the financial results of the States in 1943-44, the latest year for which complete statistical information is available. As a first approximation to the assessed grants, the commission calculated the amounts which would have been required to give to the claimant States a balanced budget in 1943-44. The total of these amounts was assessed at £2,386,000, compared with £2,027,000 last year. Honorable senators will recall that, in its previous three reports, the commission adopted a balanced budget standard, in view of the fact that the surplus budget standard enjoyed by the non-claimant States was a result primarily of Commonwealth war finance; hence it was scarcely appropriate as a standard for purposes of Commonwealth assistance. In previous years, the commission has considered it equitable that States seeking financial assistance from the Commonwealth should be required to make some special effort to redeem their financial position. Accordingly, an adjustment, calculated as a percentage of certain expenditure of the claimant States, was made to the assessed grants. Last year, the effect of this adjustment was to reduce by £200,000 the grants which otherwise would have been payable to the States. This year, the commission decided temporarily to suspend this adjustment, in view of the limited scope for special effort on the part of the claimant States. After making certain adjustments, designed primarily to pre.serve relativity in standards of revenue and expenditure between the States, the grants assessed by the commission on the financial results of the States in 1943-44 amounted to £2,369,000, compared with £1,714,000 in the previous year. Secondly, as in past years, the commission, where necessary, made. adjustments to the assessed grants, in order to bring them into line with the prospective financial needs of the claimant States in the current financial year. Thus, the commission recommended that an additional payment of £555,000 be made to South Australia, and that payment pf £153,000 >£ the grant assessed for “Western Australia be deferred. No adjustment was considered necessary in respect of Tasmania. After taking into account an amount of £225,000, the payment of which to Western Australia was deferred until this year, the net effect of these adjustments was to increase the assessed grants by £627,000, thus making the total grants payable in 1945-46. £2,996,000.

In previous years, any additional payment recommended by the commission has been termed an advance payment, and the commission has stipulated that any such advance will be deducted from the grant assessed on the States’ finances two years later, that is when the year in which the grant is paid becomes the year of review. In order to meet the fear expressed by some States that their financial future might be prejudiced under this procedure, the commission ha a now abandoned the term “ advance payment”, and has indicated that any additional payment will not be deducted from a future grant unless the budget position of a State has sufficiently improved to warrant the adjustment. Conversely, a deferred payment will, in future, not necessarily be added to the grant paid in the following year.

I shall now outline briefly the grants recommended for payment to each State. The amount recommended for payment to South Australia is £1,400,000, or £200,000 more than last year. Th h increase is due almost wholly to the fact that, after excluding the special grants paid in those years, the amount required to give South Australia a balanced budget in 1943-44 was £317,000 greater than in the previous year. The consequential increase of the special grant this year compared with last year was partly offset by the fact that last year’s grant to South Australia included a payment deferred from the previous year. South Australia’s financial position hae shown some deterioration recently, and it will be recalled that last year, in addition to the usual special grant, income tax reimbursement to that State was increased by £553,000, thus enabling the budget to be balanced. The increased special grant this year takes account of the deterioration of South Australia’s finances.

The grant recommended for payment to Western Australia is £950,000, or £46,000 more than last year. This grant was arrived at after deferring an amount of £153,000, which, after examining current budget trends, including estimated savings in public debt charges, the commission considered would not be required by Western Australia during the current financial year.

The special grant recommended for payment to Tasmania is £646,000, or £96,000 less than last year’s grant, which was the highest ever recommended by the’ commission for payment to Tasmania. The reduction of the grant is due to two main factors. In the first place, the commission excluded from Tasmania’s expenditure in 1943-44 an amount of £48,Q00. which was set aside «s a reserve to meet arrears of railway maintenance when labour and materials became available. Under the commission’s methods, expenditure on deferred maintenance will be taken into account alien actually incurred. Secondly, last year an additional payment of £65,000 was made in Tasmania, to bring the assessed grant into line with that State’3 requirements in 1944-45. After examining current trends as they may affect Tasmania’s financial position in 1945-46, the commission considered that, provided lottery revenues were maintained, and items of an extraordinary character were act included in the State’s expenditure, the grant of £646,000 should meet the financial needs of Tasmania in 1945-46.

The Government has carefully considered the twelfth report of the Commonwealth Grants Commission, and has decided that, as in all previous years, the commission’s recommendations should be accepted. The aggregate of the grants recommended for payment in 1945-46 is the highest since the commission was established, and should prove sufficient to meet the financial needs of South Australia, Western Australia and Tasmania in the current financial year. I commend the bill to honorable senators.

Senator McLEAY:
Leader of the Opposition · South Australia

– I support the bill. It is a credit to the men who occupy positions on the Commonwealth Grants Commission that for a long period their recommendations have been adopted by various Treasurers and all parties. The attitude of honorable senators and representatives from the the more populous States towards the problem that is presented by the claimant States, is worthy of commendation, i ‘ cannot recall any honorable senator having opposed a grant by the Commonwealth to those States. It is generally accepted that, although we represent different States, all of us are anxious that there shall be in Australia that development which was contemplated by the framers of the Constitution at the inauguration of federation.

I direct the attention of the Minister for Trade and Customs (Senator Keane) and other members of the Government to a suggestion that has been made by the Leader of the Opposition in the House of Representatives (Mr. Menzies), in connexion with the extension of the work of the commission, for consideration of the matter of repayments to the States now that the Commonwealth has adopted the policy of uniform taxation. The question arises as to whether the Government intends, now that the war is over, to continue uniform taxation’. Generally, throughout Australia the feeling is one of unconcern, and some people are pleased that the raising of taxes is on a uniform basis. The dissatisfaction that exists relates to the method that is applied in connexion with repayments to the various States. The amounts were determined very hurriedly during the war period, and there is considerable merit in the suggestion that from time to time the matter of what might fairly and reasonably be returned to the States from the tax collections should be given very serious consideration. The matter has been discussed in this chamber, and the Minister will admit that very grave injustice was done to Victoria ; there is no doubt about that. The three claimant States that are to receive Commonwealth assistance under this bill, I presume, are not in so serious a position, because their requirements are covered when their claims come before the Commonwealth Grants Commission and grants are made available to enable them to maintain standards comparable with those of the rest of Australia. I hope that the Government will give early consideration to the very important matter of uniform taxation. A State which has been prudent should not be penalized by being treated worse than another State which has indulged in reckless spending. I supports the bill.

Senator LAMP:
Tasmania

.- it is with reluctance that I support the measure because I believe that it docs not provide sufficient for Tasmania. [ want to know how long the Government intends to continue handing out doles to the three financially weak States. What is urgently needed is an economic commission to study the disabilities of those States and put them on a proper footing. This bill is similar to legislation of past years, under which large sums of money have been voted as grants to States without any conditions as to how the money was to be expended. Is the Commonwealth Government to continue for ever to hand out doles to the States, without regard to their economic position? If we had an economic commission, and placed £100,000,000 in a fund for placing those States on a proper footing, we should only be doing justice to them and to the people of the Commonwealth as a whole. The people want to know how long the Commonwealth Grants Commission is to continue to function. I urge the Government to put the three claimant States on a sound economic basis so that they can paddle their own canoe, and not have to lean on the Commonwealth. For many years I worked in the Railways Department of Tasmania, and, with my fellow employees, did work equal to that performed by railway workers in the mainland States. Nevertheless, we were compelled to accept lower wages than were paid for similar work on the mainland. There is no justification for that sort of thing. On one occasion when I suggested to a person with whom I was engaged in conversation that the people of Tasmania were not getting a fair deal because of the disparity between their remuneration and that of similar workers on the mainland, my companion said, “Look at the won derful living conditions that you have in Tasmania “. Apparently the capitalist owns not only the land but also the air that we breathe. I say that economic conditions are more important than pleasant surroundings. If wages in Tasmania are less than they ought to be, it naturally follows that the Government of that State cannot receive in taxes what it should receive. Tasmania is still largely undeveloped. There is no proper deepwater port in the northern portion of the State. If such a port were provided, the cost of sending Tasmanian products to the mainland States would he reduced. Practically the whole of the primary products of Tasmania are sent to the mainland States. In the north-eastern portion of Tasmania produce has to be taken from Scotsdale to Launceston to be loaded on ships for Sydney, notwithstanding that a wonderful deep-water port could be established only 14 miles away. Certainly, that site is not connected with the railway system, but that is something that could be remedied.

The Commonwealth Grants Commission should be taken over by an economic commission which would attend to such matters. The Commonwealth Government should lay down a plan, or set up an economic commission for Tasmania, and also, perhaps, for other States, although I do not know so much about them as I do about Tasmania. Among its first activities should be the development of a northern port to which deepsea ships could come, thus obviating the necessity to send goods long distances over the railways. When Tasmanian growers received a big order for potatoes for New Zealand the potatoes had to be taken to north-west coast ports, an extra 40 miles, because the shipping companies refused to use the Tamar River. That should not be necessary. Any one who is acquainted with the geography of Tasmania knows that on its north coast there are the ports of Burnie, Devonport and Launceston. The port at Launceston has never been developed; it cannot be developed because the Tamar is a tidal river. The only way to develop the northern part of Tasmania in order to serve the whole of the population is to develop Dalrymple at Bell Bay and

Beauty Point. The development of that deep water port should be undertaken, and it should bo connected by railway with Devonport on the west and with the Scotsdale line on the east. That would be of great economic advantage to Tasmania.

A report on the standardization of railway gauges in Australia which was tabled recently did not recommend any expenditure on Tasmanian railways. Why should not Tasmania be assisted by the electrification of its railways? The necessary electric power is available in the State. Living conditions in northwest coast districts of Tasmania are ideal and the various spur railway lines are only a few miles in length. Conditions are suitable for their electrification. An expenditure of only £15,000,000 would be sufficient to electrify the Tasmanian railway system and provide the necessary rolling stock. That work would confer a lasting benefit on the island State. A dole of about £646,000 for this financial year is too small for the proper economic development of the State. What is needed is a fund of £100,000,000 upon which the three States which have to obtain financial assistance could draw for their development.

Tasmania possesses the greatest tourist attractions in the world. Honorable senators who have read Barrett’s book, The Isle of Mountains, will realize that the tourist traffic of Tasmania has hardly started. Funds are urgently needed to develop those natural resources. The people of New South Wales speak in glowing terms of the mountain scenery in the vicinity of Katoomba and Leura, but on the west coast of Tasmania between Launceston and Queenstown and between Hobart and Queenstown, there are many scenes of equal grandeur. In Cradle Valley there is alpine scenery equal to that of Switzerland. Tasmania has lakes that can be used for ice skating and other winter sports for four months of the year. At present these places are difficult of access, but Tasmania has never had sufficient funds to make them accessible. What would be wrong with expending money to develop these wonderful scenic attractions? If the tourist traffic of Tasmania were placed on a sound basis it would go a long way towards abolishing . the need for annual grants to that State.

In the waters to the south of Tasmania it is reported that there are large numbers of whales and a specie* of shark which could be used for commercial purposes. Why should not Hobart again be a great whaling base If we were to develop fisheries along the Tasmanian coast and extending to the Antarctic, Tasmania would benefit greatly. The southern part of the State is practically undeveloped. There is a vast area behind Mount Wellington where wild horses and cattle still roam. Thai part of Tasmania is practically unexplored. Its timber and mineral resources have been practically untouched. These are matters which should be taken into consideration. J believe that it is economically possible to develop huge water power schemes in the Pieman, Emu and Arthur Rivers, and convey electric power, to Victoria and ‘ South Australia, so that those State would no longer be dependent upon coal which has to be carried around the coast by sea from New South Wales. By mean* of rubber covered aluminium cables there is no reason why this should not be done. This is a field in which the Commonwealth might well interest itself. We have made a start with developing an aluminium industry in Tasmania, and I understand that the Minister will visit Tasmania on Wednesday, when he can give his attention to these matters. Efforts should be made to develop industries in Tasmania, South Australia and Western Australia so that it would not be necessary for the Commonwealth to hand out to the governments of those State? this yearly dole.

Senator LECKIE:
Victoria

.- I support the bill, which may seem strange since I am a Victorian, and since this amount of £2,996,000, which is to be paid to the claimant States, comes om of the £4,000,000 which the Commonwealth stole from Victoria under the uniform income tax scheme. It was stolen with the hearty approval of those. State* which are now’ getting it back in the form of Commonwealth grants. Of course,, ai the time, I did not realize that the stolen money was to go to the other States.

L waa not quick enough on the uptake. Now I realize that they abetted the theft in the knowledge that they themselves would benefit from it. The Minister, in his second-reading speech on this measure, stated -

The commission has now abandoned the term “ advance payment “ and has indicated that any additional payment will not bc deducted from a future grant unless the budget position of a State has sufficiently improved to warrant the adjustment. tn effect, the commission says to the State governments, “ do not improve your budgetary position and you will get a bigger grant, but if you are careful of your finances you will not get any more money “. That is a direct encouragement to the States to be lavish of their expenditure. The Minister also made this statement -

After examining current’ trends as they may affect Tasmania’s financial position in 1945-48, the commission considered that, provided lottery revenues were maintained and items of an extraordinary character were not included in the State’s expenditure, the grant of £646,000 should meet the financial needs of Tasmania in 1945-46.

Senator Lamp:

– That is not enough to pay foi the damage done in Tasmania by the Victorian cabbage moth.

Senator LECKIE:

– Surely the honorable senator does not blame me for the ravages of the cabbage moth. I draw attention to the fact that the Commonwealth is counting upon the revenue derived from a lottery. This cannot be denied, but it is repugnant to me that the Commonwealth should flaunt the fact in the face of State governments, and it is, I believe, repugnant also to the people Australia.

There is no doubt that the financial relations between the Commonwealth and the States will have to be Revised. Legislation in respect to housing and land settlement places an extra financial burden on the States, yet their revenue is practically static, since the Commonwealth has seized from the States most of the means of raising revenue.

Senator Courtice:

– What about the Commonwealth taking over the obligations of the States?

Senator LECKIE:

– I was coming te that point. I was amazed that Senator Lamp, who belongs to a party which supports the abolition of the States, should agitate for larger and larger grants to Tasmania so that it may, to use hi* own words, “ paddle its own canoe “.

Senator Keane:

– That is only in the interim.

Senator LECKIE:

– - Well, the interim period has lasted for about 45 years so far. I do not object to people being enthusiastic in the interests of their own States. It shows an admirable sense of loyalty, and I believe that the financial relations between the Commonwealth and the States will have to be drastically amended in order to allow the States, large and small, to continue to function. Therefore, while I deplore the fact thai the smaller States joined gleefully in the robbery of £4,000,000 from Victoria, I do not object to this measure, having regard to the poverty of those States.

Senator McKENNA:
Tasmania

– I propose to deal briefly with several aspects on the twelfth report of the Commonwealth Grants Commission which now comes before us in relation to this measure. It would make for a very much better understanding of my points if I were to review broadly the principles and methods adopted by the commission. However, I did that some time ago in this chamber, and I do not propose to do it now; but whatever defects may appear in my contribution to the debate from that omission will be due to the fact that there is no complete review before honorable senators. Three matters to which I wish to advert are: First, effort required on account of claimancy; secondly, the adjustment in respect of social services expenditure; and, thirdly, the new methods of dealing with advances and deferements in relation to the applicant States. I propose also to touch upon two other matters: The adjustment for economy in cost of administration which is made by the commission; and, finally, the main issue between the applicant States and the commission, namely, the adoption of a normal budgetary standard and the controversy as to whether that should be on a factual basis or on the basis adopted by the commission which is a balanced-budget basis.

I congratulate the commission upon its departure in respect of the effort on account of claimancy. As honorable senators know, the commission considered that an applicant State should make some effort from its own resources to extricate itself from its financial difficulties; and it required the State to make an effort in that direction. It expressed that effort in two ways: Where °a State’s difficulty arose from the fact that previous governments had incurred past loan losses it made a reduction in respect of those losses by reason of the additional burden’ which they threw upon the State’s budget. But, in addition, it required a furthereffort - the State was required from its own resources to make some particular effort. That was always expressed as a percentage of certain expenditure and became a fixed amount.

In this report, the commission has entirely suspended the effort on account of claimancy that it requires from the applicant States. Last year, the commission, in its eleventh report, abandoned the effort it requires on account of past loan losses. I applaud both of those actions on the part of the commission. Honorable senators will agree, I believe, that Governments of States should not be penalized indefinitely for loan losses incurred many decades previously by prior governments. By that I do not wish to be understood to mean that the commission should not be in a position to impose a penalty in respect of loan losses that may be incurred in the future. That would be a reasonable matter to leave to the discretion of the commission. However, that effort was suspended last year, and, now, the total effort on account of claimancy has been abandoned altogether by the commission. I hope that it will not be reimposed. I point out that the commission’s action confers substantial benefits upon the three claimant States this year. In the commission’s tenth report for the year 1 943-44 that effort in respect of the three States is set out as follows: South Australia, £180,000, Western Australia, £140,000 and Tasmania £70,000. In the eleventh report, where the commission dropped its adjustment on account of past loan losses for the first time, the effort required was”: South Australia £90,000, Western Australia £80,000 and Tasmania, £30,000. The commission in its report dealing with the grants this year says no penalties or deductions of any kind on. account of claimancy have been made. Thus, honorable senators will see that the commission has met the applicant States to the extent of many hundreds of thousands of pounds during the last three years.

The second matter to which I wish to advert is the commission’s method of dealing with adjustments of expenditure in respect of social services. The commission takes the average expenditure of the three standard States of Queensland, New South Wales, and Victoria, and, after making an allowance in respect of density of population and areas socially served in applicant States, adjusts the expenditure of those States to the standard which the commission sets up in the way! have indicated. It is proper that the commission, in determining its standard, should have regard to the fact that there are difficulties in States like Western Australia,’ with its vast uninhabitable areas, and to a lesser degree in Tasmania and South Australia, il agree that there should be a differentiation between the three States in respect of that allowance. The commission allows to Western Australia 7 per cent, above the standard and to Tasmania and South Australia 3 per cent. Whilst the whole of the commission’s calculation* in determining the grant for a State are on a truly relative basis from beginning to end, there can be no criticism of the adoption in respect of social services of the average expenditure of the three standard States as the normal standard to be used by the commission as a measuring rod. But I consider that that may not be a proper standard where the commission, in making its first approximation to the grant, ignored the factual budgetary results of the standard States, and arbitrarily adopted a balanced-budget standard. I am particularly interested to find that in the course of this report the commission undertakes to review the method that it has adopted in respect of social services adjustment ; and I shall watch with keen interest the attitude of the commission in that regard. Speaking of Victoria, whose plight in another direction under uniform taxation was referred to by Senator Leckie, I point out that Victoria is the lowest of all the States in the scale of social services. The commission’s twelfth report shows the average per capita expenditure of the States under this heading as follows : New South “Wales, 87s. 5d.; Tasmania, 83s. 8d. ; Queensland, Sis. 7d. ; Western Australia, 77s. 6d.; South Australia, 74s. 2d., and Victoria a bad last with 68s. I am prepared to concede that while that operates disadvantageously to the applicant States when Victoria is brought into the standard for the adjustment of social services expenditure, the applicant States derive a very real and substantial benefit from Victoria’s position in respect of the adjustment on account of tax severity, because Victoria has the lowest taxation average. Dealing with the matter mentioned by Senator Leckie when he referred to the advances which the commission now makes, without proposing that they be deducted automatically in a subsequent year of grant, the grants made by the commission are calculated in the first instance on the budgetary results of the States two years behind the actual year of payment. One can appreciate that when that is the basis of the calculation of grants, when one comes to the actual year of payment, the conditions that were true two years previously may not be true of the year of payment, and, accordingly, the result ascertained by the commission may have no true relation to the needs of a State in the year of payment. The commission hitherto has done this.

Recommending the grant early in the financial year of payment, it can make only an estimate of what the results to the State will be nine months hence, but, watching trends of expenditure, it makes an advance if it thinks it necessary and automatically adjusts that advance two years later. If, however, it was indicated that the grant would be too much for the needs of the State in the year of payment, it was the practice of the commission to defer payment of an amount to the following year. The amount deferred was always paid in the following year. The commission in its twelfth report has abandoned that principle and I accept its abandonment as a much more realistic approach to the position. The commission says, in fact, “ If you need an advance this year, we will not automatically deduct it two years later, but leave it there until the conditions that made it necessary are reversed “. I applaud the commission for having taken that step. Similarly, if the amount calculated in accordance with the commission’s methods were too great for the year of payment, it will defer the amount and not pay it automatically in the next year. The position now will be that the commission will consider and deal with each year on its merits and I consider that this important alteration of the commission’s methods will give to the applicant States a degree of confidence in their future that they have not hitherto enjoyed. An exemplification of the way the method works is found in the report. The grant for South Australia, based on the year of review, 1943-44, would have been £845,000, but the commission has recommended an advance of £555,000, which will not be subject to automatic adjustment. Western Australia provides an example of the reverse procedure. The grant calculated for Western Australia was £878,000, but the commission considered that it would not need £153,000 and that has been deferred indefinitely.

So far I have been commending the commission, which I am happy to be able to do, but I now venture upon some little criticism of it in two aspects. The commission in all but the last two years has made an adjustment for economy in the costs of administration in the applicant States as compared with the similar head of expenditure in the standard States, but the commission, in my view, unfortunately in the last two years has abandoned this adjustment, which was always favorable to the claimant States. This is an important and real disadvantage to the claimant States. I am prepared to concede that, under war conditions, the actual making of the adjustment and the calculation of its effect has become increasingly difficult, but I consider that, particularly as the claimant

States were tied down to a balanced budget as the normal budget of the standard States, the commission should have been reluctant to. abandon adjustments that for many years had reacted in favour of the claimant States. The tenth report, two years ago, made an adjustment of £30,000 to Western Australia, £20,000 for South Australia, and £20,000 for Tasmania, but those adjustments were not made last year or this year. I express the view very strongly that that adjustment should be taken up again by the commission, and I hope that there will be no need to make a comment of that nature again.

I pass to the final point. It has been the practice, I think, of all States, except Tasmania, to publish certain budgetary results year by year, .and later, when close examination of those accounts is required, to adjust them. We find that there are two sets of budget figures, the budgetary result as published and the budgetary result as adjusted. In 1940-41 and the two following years the published budgetary results of the standard States showed reasonably substantial surpluses, but those surpluses were, in fact, adjusted by the commission, which had regard to reserves created for deferred maintenance and reserves put away for post-war reconstruction. Those reserves amounted not to just some millions but to tens of millions of pounds, and in the three .years I have mentioned, according even to the commission’s broad calculations, about £23,00’0;<00’0 of accumulated surpluses was -recorded. Those years, of course, form the basis for the grants in the years 1942;4’3, T943-44, and 1944-45. If the commission had allowed the applicant States to participate relatively in those surpluses, which unquestionably were ‘created by federal action and federal #ar -expenditure, they would’ have participated to the extent of £4,500;000 distributed among the three applicant States as follows: South Australia, £1,614,000; Western Australia, £2,040,000 ; Tasmania, £1,026,000. There was a surplus in 1943-44 in the standard States, and I have no doubt that there will be one this year. In the last five years there is a picture of surpluses federally created in the standard States. They mark the beginning and end of a special problem for the Commonwealth Grants Commission. The view of the federal Treasury, which is one that I accept, wasthat it would be quite unreasonable to put the applicant States on a surplus standard in periods of War, and give them money they could not spend owing to the shortage of men and materials. One cannot argue against that view or very strongly against the view put up by .’the commission that financial needs are no longer existent when the budget is in fact balanced, but I direct the attention of honorable senators to the principle enunciated very emphatically in the third report of the commission -

Special grants are then, continuous in principle With other transfers of Commonwealth revenue to the States. They should be the amount required to complete the work begun by other transfers, and to reduce the financial inequality ‘of the States sufficiently for the harmonious and effective working of federal government. That is the obvious and natural approach to the question of special grants. 184. It should always be remembered that all financial adjustment within a federation is a means of distributing in a rational way the total financial resources of the group. It should not be regarded merely as a means of assisting States -in difficulty. Extra assistance to them is simply a part of the general process. A fair application of the total resources is the true method of obtaining responsibility -in each government.

There are difficulties in the way of adjustment of Commonwealth and State financial arrangements. They are inherent in every federal system. They flow from the uneven distribution of responsibility and the unequal access to financial resources. We find on the one hand that the States have heavy responsibilities in the spheres that they control, and inadequate finance to meet those responsibilities. So they call upon the central government for very substantial assistance. I resent very strongly the charge that that is robbery -or stealing, the extraordinary and extravagant terms used by Senator Leckie. The honorable senator said that Victoria had been robbed as the result of the apportionment of income tax disbursements, by the Commonwealth. That State, on what Senator Leckie regards ‘as an inadequate hand-out from the Commonwealth, has created enormous reserves of revenue for the purposes of post-war reconstruction and deferred maintenance works

That completely answers the honorable senator’s argument. It has been said that Victoria has starved its people of social services, but various factors must be considered in that connexion. The people of Victoria are more disposed to send their children to private schools, to patronize private hospitals in preference to public hospitals, and to indulge in private benefactions than those of other States. Talking about mendicancy, one” recalls the frequency with which collection boxes for charitable appeals are rattled under one’s nose in the streets of Melbourne. That sort of thing is a regular and undesirable feature of life in Victoria. However, the cumulative effect of these things is to reduce the strain on the State budget for social service expenditure. The strain, which is being felt by Victoria at present is due to the fact that the people, owing to the heavy incidence of taxation, find themselves unable to maintain the standards of living which they have enjoyed hitherto. They have not the same opportunities as previously to send their children to private schools and to patronize private hospitals, and they are relying more and more on State services, which are inadequate to cope with the extra demand on them. I should like Victoria to be given an opportunity to extend its social services. If uniform taxation is to be continued, Victoria will have no cause, for complaint regarding the assessment of the income tax reimbursement by the Commonwealth. There will be some flexibility in the allocation of funds. The main differences of opinion between people whO’ take a keen interest in the methods of the Commonwealth Grants Commission relate to the claims of a surplus standard a’s against a balanced budget standard. There is not much real difference in principle between the two. The commission has intimated in its recent reports that it will take the reserves of the States into- account when they come to be expended. There are objections to this course of procedure. One view is that a pool should be created representing the applicant State’s share in those reserves, and that it should be used from time totime to give truly balanced budgets to the applicant States. These are- merely mat ters of principle and methods of giving the applicant States a share in those reserves and surpluses. I believe that the conflicting views can be reconciled by mean3 of the formula which I have suggested, or by some other process.

Senator Leckie referred to the dependence “ of the Commonwealth on lottery revenues. That was a completely wild and extravagant statement. Four States derive revenue from lotteries. As far as Tasmania’s revenue from lotteries is concerned, the Commonwealth Giants Commission, in making an adjustment for the severity of taxation, takes no account of lottery revenue drawn from the mainland or from outside Australia. It only allows the State credit for the revenue derived in this way from its own citizens. Therefore, Senator Leckie’s statement was inaccurate.

Senator Leckie:

– The Minister referred to that matter. I quoted from his speech. . ,

Senator McKENNA:

– There was no suggestion in the Minister’s -speech that the Commonwealth was’ dependent on lotteries. He said -

After examining current trends’ as they may a”ffect Tasmania’s financial position in 1945-4G, the . commission considered that, provided lottery revenues were maintained and items of an extraordinary character Were not included in the States’’ expenditure, the grant of £646,000 should meet the financial needs of Tasmania in 1945-46.

I say to the honorable senator that if, from those words, he can justify his statement that the Commonwealth is dependent upon lottery revenue, he’ must have X-ray eyes.

Senator Leckie:

– I have. I can see through things like’ that.-

Senator McKENNA:
TASMANIA · ALP

– A review of financial relationships between the Commonwealth and the States, taken simpliciter, would be wholly inadequate. It should involve a review of the respective constitutional obligations of the Commonwealth and the .States. I am happy to note that there is a trend towards provision by the Commonwealth of social standards that apply to every man, woman and child in Australia, irrespective of State of residence. It is not generally appreciated that the Commonwealth makes enormous contributions to all States. In this connexion I draw attention to appendix No. 9 of the twelfth report of the Commonwealth Grants Commission, which shows payments made by the Commonwealth to the States and their citizens from revenue and loan fund for the year 1943-44 as follows: -

During 1943-44, the Commonwealth paid £60,000,000 to or for the various States. Income tax reimbursements amounted to almost £33,000,000. The contribution by the Commonwealth to the interest and sinking funds of the public debts of the States was approximately £9,000,000. There were contributions to the national health campaign and the national fitness campaign and grants for research. Also, there were grants which were not credited to budgets of the States, but which were made to individuals for drought relief and other purposes. The grand total is about £60,500,000. All States are dependent on Commonwealth aid to enable them to meet their obligations. I believe that there will be increasing dependence on the Commonwealth in that regard.

Senator Collett:

– Is that not the result of uniform taxation?

Senator McKENNA:

– Not altogether. Approximately £9,000,000 already is contributed by the Commonwealth to the public debts of the States, consisting of £7,500,000 for interest payments and approximately £1,500,000 for sinking fund contributions. This excellent report of the Grants Commission is deserving of more consideration than we are able to give . to it in the time at our disposal. I pay tribute to the commission for- the value of ite work. “We must realize that the Commonwealth Grants Commission is only dealing with the tail-end of the problem - the equalization problem - and of the total amount of £60,000,000, the commission was concerned only with an amount of between £2,000,000 and £3,000,000. Therefore, we must not regard this commission as being a body which adjusts the whole flow of finance from the Commonwealth to the States. Its work begins at a point where the Parliament leaves off, after having made contributions totalling about £58,000,000. The commission equalizes and adjusts the effect of these various transfers from Commonwealth revenue to the several States on their different bases.

I pay tribute to the readiness with which the Commonwealth Grants Commission is prepared to listen to criticism and deal with it publicly. .In this report, as in other reports, the commission has maintained a high literary standard. With the new view which it has taken on matters about which I, among others, complained not so very long ago, and with particularly the adoption of the new basis of advancement and deferment, the commission has taken another progressive step. When it has met the objections that flow from the applicant States regarding their participation in the war surpluses of the standard States, I believe that the commission will reach the most extraordinary position possible under any government, because no one will be justified in uttering a word of criticism against it. It is necessary for the applicant States to know forthwith that these moneys will be available. I support the bill.

Senator SAMPSON:
Tasmania

, - When I recall how, in the past, we were compelled to fight to obtain justice from the Commonwealth for the island State, I think how extraordinarily wise it was to establish the Commonwealth Grants Commission. This body has done excellent work in examining the financial position of the applicant States, weighing all the evidence and submitting its recommendations to the Commonwealth Government. This method is a wonderful improvement on the position in 1925-27. In 1926 the Lockier Commission was appointed to investigate the disabilities of the. island State, but the Commonwealth Grants Commission is a more, advanced body than that. I congratulate the commission on ite work.

We in Tasmania are a peculiar people, but then, we are peculiarly situated. Tasmania is surrounded with water, and that creates difficulties. I have vivid recollections of many things which have happened to Tasmania simply because it is an island State and depends on sea transport. History repeats itself. When I returned to Australia after having served in the war of 1914-18, I was delayed in Melbourne for many weeks because of a shipping hold-up. It is a peculiar coincidence that one of my sons, who turned up last Monday from New Britain after six years’ service in this war, is now delayed in Melbourne and cannot return to Tasmania. Prisoners of war and men with long service in the forces are in a similar situation.

Senator Leckie complained that it was “ rough “ to expect Victoria to pay the whole grant to the State of Tasmania. We Tasmanians are ‘proud of Victoria. In 1835, John Batman, John Pascoe Fawkner and other stalwart and enterprising citizens of the little town on the Tamar sailed across Bass Strait to Victoria and founded on the banks of the river Yarra, a village which has become the magnificent city of Melbourne. I suggest to Senator Leckie that it is only fair that the stalwart son, Victoria should help its mother, the State of Tasmania. That statement is not an exaggeration. History reveals that Victoria owes a great deal to its little mother, Tasmania.

From time to time, Tasmania has suffered from loss of population. That is only natural, and happens wherever big centres are not very distant. It occurred in Newfoundland when enterprising young men and women migrated to the Dominion of Canada. When I visited Canada as a member of a delegation in 1928, I heard complaints that the United States of America was attracting enterprising young Canadians. In the same way, the mainland attracts many Tasmanians. We in Tasmania are proud of our education system. We expend more money per capita on education than does any other State; Of course, that, in itself, should pay rich dividends, hut in many ways and on many occasions we do not benefit, because young Tasmanians of both sexes are eagerly sought by the mainland States, particularly Victoria. Tasmanians hold important positions in all States. We as a people must expend more money on education because the only hope for the progress of the Commonwealth lies in education. When I say, “ education “ I use the word in its broader sense.

After having examined current trends as they may affect Tasmania’s financial position in 1945-46, the Commonwealth Grants Commission considered that, provided lottery revenues were maintained and items of an extraordinary character were not included in the State’s expenditure, a grant of £646,000 should meet, the financial needs of Tasmania in 1945-46. I hope that it will. But, recently, in Tasmania, there has been expenditure of an extraordinary character. In the aggregate the sum is not large, but I am amazed to read that the State Government was making grants to sporting bodies. It is not a function of the Government to donate £100 to a football club, or £300 to another sporting body. That is extraordinary expenditure, and I hope that the Commonwealth Grants Commission, as no doubt it will when it examines Tasmania’s accounts, will take these donations into consideration. This is a dangerous precedent which may result in sporting bodies of all types seeking a “ dole “ from the .State Government. Such payments, of course, would be a vote-catching proposition. If people cannot pay for their own sport the lookout is very bad indeed. I am entirely opposed to grants in aid for this purpose. I take it that the extraordinary expenditure which the commission has mentioned would include payments of that nature.

Senator Lamp has dealt with the many advantages enjoyed by Tasmania. It is quite true that Tasmania does enjoy advantages, but consideration of the Commonwealth as a whole is a difficult and complex problem, because no two States are alike either in geographical features, resources, or climatic con ditions, and every case has to be dealt with on its merits. That is the task of the commission. The commission hears evidence in public and is free from political pressure. The setting up of the commission was an excellent step and I trust that it will continue to function and, if possible, that it will be strengthened. I support the bill.

Question resolved in the affirmative.

Bill read a second time.

In committee:

The bill.

Senator LAMP:
Tasmania

.- I hope that in future the report of the Commonwealth Grants Commission will be made available to honorable senators before they are called upon to consider States grants legislation. It is difficult to review the work of the commission, satisfactorily without having studied the report.

Bill agreed to.

Bill reported without amendment; report adopted.

Bill read a third time.

page 6603

TUBERCULOSIS BILL 1945

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator KEANE:
Minister for Trade and Customs · Victoria · ALP

– I move -

That the bill be now read a second time.

This bill is designed to put into effect the Government’s plan to intensify the attack on tuberculosis in Australia. It is a further and strongly supported step forward in the Government’s comprehensive social policy. The main principles of the campaign against tuberculosis as set out in this bill were discussed at the conference of Commonwealth and State Ministers of August, 1944, and. unanimously accepted.

The Commonwealth’s proposals fall into four parts: The first part seeks to encourage the States to establish additional diagnostic facilities for the early detection of the disease. Clause 4 (1) of the bill provides for the Commonwealth to subsidize, £1 for £1, the expenditure of the States on maintenance of new diagnostic facilities, up to a maximum of £50,000 per annum, distributed amongst the States as the Minister determines. These facilities will take the form of clinics, dispensaries and X-ray equipment established after the commencement of the act. The second part of the Commonwealth’s proposals, set out in. clause 5 of the bill, provides for a substantial Commonwealth contribution towards the maintenance expenditure of tuberculosis hospitals established after The commencement of this act, in the form of >a subsidy of 6s. a day for each occupied bed. Existing tuberculosis hospitals and their patients will come within the provisions of the Commonwealth Hospital Benefits Scheme. The Commonwealth payment is subject to the condition of free treatment of patients in public wards of these tuberculosis hospitals.

Section 4 (2) sets out the third part of the Commonwealth proposals. The Commonwealth proposes to assist the States to expand after-care facilities such as labour colonies for patients who require further care and training after their discharge from a tuberculosis hospital. The assistance will consist of subsidies for the maintenance of the after-care facilities, on a £1 for £1 basis, up to £50,000 per annum as for diagnostic facilities. The distribution of the amount amongst the States will be as determined by the Minister.

The last part of the Commonwealth proposals adopts the recommendations of the authorities on tubercular diseases that an adequate nutritional level for the sufferer and his dependants to resist the disease should be maintained. To this end, the Commonwealth proposes to provide special cash allowances for the families of sufferers additional to any other Commonwealth social services benefits for which they may be eligible. Each case will be considered on its merits, and it is proposed that the special allowance will be paid only in those cases where the fight against the disease will be positively assisted. Suitable arrangements for distributing the special allowance are now being discussed with the State health officers and, in view of the necessity to make complete preparations, it may be necessary to delay the proclamation of clause 6 of the bill. Because it may be some time before the States themselves are able to fully avail themselves of the Commonwealth proposals, expenditure! in the current year should not exceed £300,000, but in a few years’ time, the annual cost will be about £1,000,000. Payments under this bill will be met from the National Welfare Fund.

Senator COOPER:
Queensland

– I welcome this measure. The incidence of tuberculosis amongst Australian people has been the subject of investigation by the Social Security Committee which in July, 1943, presented a report to the Parliament, containing certain recommendations. The state of affairs which the committee found to exist in this country at that time was serious, and was a reproach to those in authority who were aware of the facts. For many years Australia has had strict health laws, and has exercised close supervision of the health of people entering this country; yet we permitted this dread disease to reach a serious stage of development. With facilities for early diagnosis, and the provision of modern equipment, 1 have no doubt that tuberculosis could be almost completely stamped out in this country. When the committee investigated the matter, it was estimated by the public health authorities that there were 30,000 active tubercular cases in this country. Therefore, four in every 1,000 people in Australia were known sufferers from the disease. The worst feature is that many sufferers are probably not aware of the fact. Although notification of the disease is compulsory we found that the law in that respect was not effectively observed. Only in severe and advanced cases was notification of the disease received.

The economic factor is closely associated with the problem of the cure of the disease, and I am glad that special provision is to be made for the payment of a cash allowance to the families of sufferers. The committee found that the fact that a patient might require treatment for one, two or even three years, made him loath to enter a hospital for that period without adequate provision being made for his wife and family. The committee recommended a special payment about equal to the basic wage to the wife and dependent children of a married sufferer requiring treatment, because if he left a sanatorium before being completely cured he would soon have to return to the institution. At present he receives sickness benefit to the amount of £1 5s. a week, £1 a week for his wife, and 5s. a week for his first child. That is not an adequate financial provision to enable a family to carry on while the bread-winner is confined to a sanatorium or a hospital for a lengthy period. In order to stamp out the disease effectively, it must be combated in the early stages. The committee stated, in paragraph 91 of its report, that according to expert medical opinion, the essential activities of a tuberculosis service can he broadly grouped under the following three main headings : -

  1. Search for persons who have a tuberculosis infection sufficiently developed to warrant the use of the word “ disease “, either active or inactive ;
  2. Treatment of the disease in a sanatorium; and
  3. After-care and rehabilitation of patients discharged from the sanatoria.

The first step recommended was that wellequipped clinics with modern equipment be established in large centres of population. It was estimated that such clinics, with accommodation for twelve beds, would each cost about £20,000, and that one clinic should be provided for every 150,000 people. That recommendation was made by the committee, after having taken evidence on the matter throughout the Commonwealth. It also urged that suitable tests be made among the whole of the people. These consisted of the following : -

  1. Skin testing, by the “Mantoux” method of young children at school age, and continuing at five-yearly intervals;
  2. mass miniature X-ray examinations of the population on a systematic and uniform scale, and particularly of adolescents at the age of fifteen years and into adult life;
  3. provision of chest clinics and chest hospitals, where patients could be examined and could be accommodated for observation, diagnosis and treat ment, and where X-ray and other diagnostic aids would be readily available;
  4. improvement in, and modernization of methods of diagnosing and treating tuberculosis as taught to students at teaching hospitals attached to medical schools.

Australia is in a fortunate position at present for carrying out such tests, as service personnel have tested by the miniature X-ray every recruit who has presented himself for enlistment. All of the equipment used for that purpose will be available for carrying on the work among the civilian population. If the object is to have all of the people examined by these methods, we shall be able to discover many who are suffering from the disease in the early stages and who could be completely cured. It was stated in evidence before the committee that many sufferers, after leaving sanatoriums, return in a year or so in a worse condition than before. The Director of Tuberculosis in New South “Wales stated in 1939 that on investigation of the after histories of 767 patients admitted in 1934 to various sanatoriums in New South Wales, it was found that, during the five years up to 1939, no fewer than 350 had died of tuberculosis and 329 had been re-admitted to sanatoriums. Those figures are illuminating as they show what a terrible scourge this disease is, and the toll it is taking of human life in this country. The medical profession laid great stress on the shortage of beds for persons suffering from tuberculosis. In 1940 it was estimated that an additional 2,963 beds were needed in sanitoriums throughout Australia to meet the needs of persons requiring treatment. In paragraph 104 of the committee’s report it is stated -

There have been for many years waiting lists in all sanitoriums, and often a list includes as many as 200.

There is great need for something to be done to assist these unfortunate people. A period of rehabilitation is most important. Before an individual who has been in a sanitorium for three years can compete in the outside world he must be trained gradually to take his full place in the life of the community. This situation was faced in Great Britain. In paragraph 108 of the report the committee states that the Employment Committee of the Tuberculosis Council of Great Britain thoroughly investigated this field, and in an excellent report covering the whole field of rehabilitation of affected persons which was published in 1942 it had stressed the following points -

  1. Employment of patients in sanitoriums.
  2. Use of training colonies where gardening, poultry farming and pig raising are taught.
  3. Introduction of village settlements where certain industries are carried on and where the patient and his family can be cared for as a unit.

In his second-reading speech the Minister said that it is proposed to assist the States to establish labour colonies in which patients who require further care after discharge from tubercular hospitals can be employed. Remarkable results have been achieved by village centres in Great Britain. One such settlement is at Papworth. Concerning it the report states -

It is claimed that at the Papworth settlement in England, no child born at the settlement has contracted tuberculosis. The spread of infection has been prevented through the care and attention given to the patients and through education.

It is worthy of note that in these village settlements all the members of the family are accommodated, and the children receive their’ education there. The father works a few hours daily as soon as he is able to undertake employment. The results which have been obtained in England show what can be done in the right environment;, and prove that other members of the family are not in danger of contracting this dread disease. The committee recommends as essential principles of a campaign against tuberculosis (1) an increase of special rate pensions to the tuberculous and allowances to the dependants approximating the basic wage, (2) extended’ and improved facilities at chest clinics for early diagnosis of cases detected by the preliminary survey methods of “Mantoux” testing and miniature X-ray photography; consideration should be given to making compulsory the examination of certain agegroups; (3) adequate follow-up of contacts and examination by these facilities ; (4) improved accommodation and facilities for treatment, especially of early cases, in hospitals and sanatoriums, by the most modern methods of technique; (5) greater development of after-care and of rehabilitation, including occupational therapy and village settlement of “ arrested “ cases.

I sincerely hope that this legislation marks the beginning of greater cooperation between the Commonwealth and State authorities in the campaign against tuberculosis, and that it will lead to the stamping out of this disease which is taking such an enormous toll of health, life and happiness. In a country such as Australia it should be possible to stamp out this disease entirely.

Question resolved in the affirmative.

Bill read a second time.

In committee:

The bill.

Senator COLLETT:
Western Australia

– Clause 4 makes provision for payments to the States in respect of diagnostic and after-care facilities, whilst clause 5 provides for payments in respect of certain patients in hospitals. Does the bill provide for payment to the States to enable them to erect or enlarge modern institutions for the treatment of tuberculosis ?

Senator Keane:

– Yes.

Bill agreed to.

Bill reported without amendment; report adopted.

Bill read a third time.

page 6606

THE WAR

Offences Against Commonwealth Law : Remission of Sentences

Senator KEANE:
Minister for Trade and Customs · Victoria · ALP

by leave - I inform the Senate that His Royal Highness the Governor-General has been pleased to mark the occasion of the formal surrender of Japan by exercising clemency towards offenders against laws of the Commonwealth and the Territories of the Commonwealth. The remission to be granted to members of the forces is, except in respect of sentences not exceeding 56 days, on the basis of one-fourth of the sentences being served on the 12th October, 1945, or which have been ordered to commence from that date or a prior date. In respect of sentences not exceeding 56 days, the remission will he fourteen days. The remission in the case of civilians will be on the basis of approximately one-seventh of sentences of three months or more.

Details of the scale of remission which is to operate in respect of offenders serving sentences on, or convicted prior to, the 12th October, 1945, are-

In respect of sentences up to three months inclusive, fourteen days.

In respect of sentences in excess of three months, at the rate of fourteen days for each period of three months,with a proviso that any period so remitted is not to exceed six months.

The foregoing remissions do not apply in any case in which a sentence of death has been commuted to imprisonment for life.

page 6607

PHARMACEUTICAL BENEFITS BILL 1945

Bill returned from House of Representatives with an amendment.

In committee (Consideration of House of Representative’s amendment) :

Clause 5 -

Section ten of the Principal Act is repealed and the following section inserted in its stead: - “10.- (1.) The Director-General shall, on application by a pharmaceutical chemist who is willing, subject to sub-section (5.) of this section, to supply pharmaceutical benefits on demand, approve that pharmaceutical chemist for the purposes of supplying pharmaceutical benefits in accordance with this Act.

House of Representative’s amendment. - After “is”, proposed new section 10 (1.), insert “ permitted by law and is “.

Senator KEANE:
Minister for Trade and Customs · Victoria · ALP

.- I move -

That the amendment be agreed to.

This amendment was inserted in the House of Representatives at the request of the Leader of the Opposition (Mr. Menzies). It is a drafting amendment in order to make clear that the proposed new section will not operate as a direct grant of power by the Commonwealth authorizing the supply of pharmaceutical benefits. The amendment makes express provision that the supply of pharmaceutical benefits is subject to the laws of the States.

Question resolved in the affirmative.

Resolution reported ; report adopted.

page 6607

HIGH COMMISSIONER BILL 1945

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator ASHLEY (New South Wales-

Minister for Supply and Shipping) [12.24]. - I move-

That the bill be now read a second time.

The bill to amend the High Commissioner Act by inserting a section enabling a Commonwealth Minister to exercise the powers and perform the duties which by that act are vested in the High Commissioner. As honorable senators are aware, Mr. Bruce’s term of office as High Commissioner will expire on the 7th October, 1945. The Minister for Defence (Mr. Beasley) will be proceeding to London as Australian Resident Minister in the United Kingdom, and on arrival in London will assume all the responsibilities of the High Commissioner of the Commonwealth of Australia in Great Britain. As certain of the powers and functions of the High Commissioner, such as the appointment of officers, &c., are, by the High Commissioner Act, vested in the High Commissioner, it is necessary to amend that act in order that those powers and functions may lawfully be exercised by the Resident Minister.

Senator McLEAY:
Leader of the Opposition · South Australia

– I support the bill. I take this opportunity to express my great personal admiration of the work performed by Mr. Bruce as High Commissioner for Australia in London. He is an outstanding Australian. When I was in London recently I had an opportunity to discuss with him certain international problems. I am convinced that very few Australians are better qualified than Mr. Bruce to deal with those problems. I sincerely trust that the Government will bear that fact in mind when the various appointments involved in the representation of Australia in respect of our commitments under the Charter of the United Nations are being considered. Now that Mr. Bruce’s term as High Commissioner in London is about to expire, I am pleased that the Government is not content that Australia should be represented, even temporarily, by a departmental officer during this important period of our history. Whilst I regret that Mr. Bruce is about to relinquish his office, all honorable senators will, I believe, agree that his successor, the Minister for Defence (Mr. Beasley), will fill the important post of Australian Resident Minister with great credit to himself and also to Australia. I wish him every success in dealing with the difficult problems that lie ahead of him.

Senator LECKIE:
Victoria

– Judging by government pronouncements, the object of this measure is merely to enable the Minister for Defence (Mr. Beasley) to assume the post of Resident Minister in London. However, in the absence of any indication to the contrary, it would appear that the provision for the appointment of a Resident Minister in London is to remain a permanent provision. In these circumstances, the Government may, without the consent of the Parliament, appoint Resident Ministers in the future. I do not know whether the significance of permanency in this matter has been realized. I have no objection to the hill in its present form assuming that it is necessary that a Resident Minister temporarily succeed Mr. Bruce, but I am not sure that it is wise to make this a permanent provision, when temporary appointments of this kind can be made under amending legislation at any time. I should like to know whether the Government really intends this provision to be permanent.

Senator ASHLEY:
Minister for Supply and Shipping · New South Wales · ALP

in reply - I join with the Leader of the Opposition (Senator McLeay) in expressing appreciation of the valuable services rendered by Mr. Bruce during the time he has been High Commissioner for Australia in London. The Government realizes that Mr. Bruce has rendered splendid service to this country, and the late Prime Minister, Mr. Curtin, and the present Prime Minister (Mr. Chifley) have expressed the Government’s appreciation in that respect on many occasions.

Senator Leckie has drawn attention to the fact that under the bill the provision for the appointment of a Resident Minister is of a permanent character. Mr.

Bruce’s appointment as Resident Minister in London some years ago was limited to two years. Should any occasion arise to appoint another Resident Minister in the United Kingdom, it will not be necessary for the Government to enact special legislation.

Question resolved in the affirmative.

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

page 6608

EDUCATION BILL 1945

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator ASHLEY (New South Wales-

Minister for Supply and Shipping) [12.33]. - I move-

That the bill be now read a second time.

This bill has been prepared to give effect to the intention expressed by the Government some time ago to establish a Commonwealth Office of Education and to make permanent the Universities Commission. I should like to outline very briefly a little of the history leading up to the Government’s decision. In view of the Commonwealth’s increasing interest in education, the late Prime Minister established in 1944 a committee of senior Commonwealth officers, which reported on the need for a Commonwealth body to co-ordinate its educational activities. A full account of the Commonwealth’s interest in education and of Commonwealth expenditure on education was given by the Minister for Post-war Reconstruction (Mr. Dedman) in the House of Representatives on the 26th July. The Office of Education provided for in the present bill will meet that need, and the permanent Universities Commission will carry on special functions in association with the office. This does not mean, of course, that the Commonwealth should take over the control of education, but rather that it should co-operate with the States in fostering educational development. There is no intention whatever that the establishment of a Commonwealth Office of Education should impinge in any way upon the functions of the States and the State Departments of Education, nor is there any intention that the Commonwealth should interfere or attempt to interfere with the powers of the States in regard to education. The Government believes that by co-operation with the States the Commonwealth will be able greatly to increase the nation’s educational facilities and resources, and, as a result of this development, to provide for our young people, and, I hope, in the not distant future, for men and women after they have left school, greater and fuller opportunities for education. Part I. consists mainly of definitions. Part II. provides for the establishment of a Commonwealth Office of Education. The functions of the office are stated briefly in clause 5 (.2) -

  1. to advise the Minister on matters relating to education.

The need for such advice does not call for comment. The requests received by the Government for Commonwealth action, or assistance, in educational matters and the frequent suggestions made are in themselves sufficient to warrant the establishment of a competent Commonwealth authority in this field. Paragraph b reads -

To establish and maintain a liaison, on matters relating to education, with other countries and the States.

The development of official relations on educational matters between the Commonwealth and other countries is long overdue. This particular need is heightened at present by. the forthcoming conference to be held in London to establish a United Nations Educational and Cultural Organization. This will, I believe, be a valuable international body. We have had inquiries from abroad as to the possibility of organizing exchanges of teachers with other nations. We must, too, ensure that Australia is visited by outstanding educationists from all parts of the world. The Government hopes that it will also be possible to arrange for some of our own educationists to travel abroad. Arrangements for continuous liaison with the States on educational matters are equally necessary. The liaison which can be developed through this office will, we believe, be continuous and effective. Paragraph c reads -

To arrange consultation between Commonwealth authorities concerned with matters relating to education.

This was one of the functions which was emphasized by the report of the interdepartmental committee to which I have referred. Paragraph d reads -

To undertake research relating to education.

This will be a function of growing importance and of the greatest value. Some of the State education departments have carried out important educational research, as have some of our Australian universities, while Australia has benefited too from the work of the Australian Council for Educational Research. Here again, it is not intended that the office should replace the existing educational activities; but it is hoped that, in collaboration with these agencies, original researches on matters of national importance in relation to education will be conducted.

The remaining principal purposes of the office are -

  1. to provide statistics and information relating to education required by any Commonwealth authority.

The need for a central source of such information need not be emphasized. Paragraph / reads -

To advise the Minister concerning the grant of financial assistance to the States and to other authorities for educational purposes.

The need in this regard has been recently underlined by certain requests made by the States at conferences of Commonwealth and State Ministers. If the Commonwealth is to contribute to educational development, it is the responsibility of the Government to see that contributions so made are allocated in accordance with a consistent policy, and in such a way as to provide the greatest benefits.

The Senate will realize that the Government desires to establish a body which will not conflict in any way with existing institutions, but which should help to supplement the present educational resources of this nation. The Government has been very fortunate in securing for the office of the Director of the Commonwealth Office of Education the services of Professor E. C. Mills. His experience in education, and also in the field of Commonwealth activities, is considerable and varied, and his work as Chairman of the Commonwealth Grants Commission and of the Universities Commission is well known.

Part III. of the bill provides for the establishment and constitution of a Universities Commission. The Universities Commission has functioned since the beginning of 1943 under National Security Regulations. One of the main functions of the commission has been the administration of a scheme of financial assistance which was introduced as a war measure but which we believe should be continued in peace-time. The regulations under the National Security Act will lapse in due course. It has, therefore, become necessary for us to provide for the continuance of the administration of the scheme of financial assistance. This is one of the main reasons for the present bill.

Speaking in the House of Representa- tives, the Minister for Post-war Reconstruction (Mr. Dedman) recently gave an assurance that the Government had no intention of continuing the direction of man-power as far as university students were concerned after the cessation of hostilities. Before the Japanese surrender had actually been signed, an announcement was made that there would be no selection of students for reservation at universities in 1946. Honorable senators will see that the present bill makes no mention whatsoever of reservation or of man-power controls.

The Government has announced that it willcontinue to assist new students financially under the civilian scheme for at least five years after the cessation of hostilities. This means that new students will be accepted at least up. to and during the year 1950. The Government has also announced that students accepted in this way will be. assisted, subject to the usual conditions, throughout the whole of their course. The Government has fixed this period of five years not as the period in. which it considers financial assistance should continue, but as a period in which full discussions can take place with the States as to the method of providing the necessary finance, as to the means of administration, andas to the conditions of eligibility for assistance of a permanent basis. For the present it is necessary to make some alteration of the method of administering assistance following the end of the war and the abolition of reservations and the opportunity will be taken to spread the assistance more evenly between the various university faculties.

Clause 8 (2) provides that the commission shall be a body corporate, capable of suing and being sued in its corporate name. The Government thinks that this is desirable in a body set up under statutory authority. Provision is made for the Director of the Office of Education to be chairman of the commission and for the appointment of three other members for periods not exceeding three years.

The functions of the commission are set out in clause 14 in simple and concise terms. They are -

  1. to arrange for the training in univer sities or similar institutions forthe purpose of facilitating their re-establishment of persons who are discharged members of the forces within the meaning of the Reestablishment and Employment Act 1945.

The commission has been acting as a training authority under the Commonwealth Reconstruction Training Scheme since that scheme began to operate, and the commission’s field of activities includes all training provided by universities and similar institutions. In general, regulations relating to reconstruction training will be made not under this bill but under the Re-establishment and Employment Act. Other functions are - (&) in prescribed cases or classes of oases, to assist other persons to obtain training in universities or similar institutions.

  1. to provide financial assistance to students at universities and approved institutions.

The conditions under which assistance can be provided to students will be prescribed in regulations made under this bill. A further function is - (d). to advise the Minister with respect to such matters relating to university training and associated matters as are referred by the Minister to the Commission for advice.

One important provision made in clauses 15 and 16 relates to State committees. The present Universities Commission found it desirable to set up committees of advice in the various States. The appointment to these committees of the directors of education and of certain members of the staffs of the education departments has, of course, been made after consultation with the State premiers. Provision is made for the commission to submit an annual report to the Minister, and for the issue of regulations to give effect to the matters dealt with in the bill.

Sitting suspended from l.47 to2.15 p.m.

Senator LECKIE:
Victoria

.- The speech of the Minister (Senator Ashley) in explaining the purpose of this bill, filled half a dozen closelytyped foolscap pages, yet honorable senators are asked to deal with this and three or four other measures by 3 p.m. to-day. I do not propose, in the time at my disposal, to discuss the bill, but I criticize this indecent travesty of legislation by forcing measures of this kind through the Senate in the last moments of the sessional period. The bill before us provides for an entirely new departure, in that the Commonwealth is to accept responsibility for certain educational activities throughout Australia. How can the Senate be reasonably expected to deal with bills of such far-reaching importance in a few minutes? Had I so desired, I could have caused some inconvenience to honorable senators by holding up the passage of this bill, but I shall merely protest against this method of legislation. It is not uncommon for us to experience an avalanche of bills in the last few days prior to a recess. Almost invariably they are measures of a comparatively minor importance, and do not call for extensive debate, but the bills now awaiting our attention at this late stage demand the closest consideration. This measure saddles the Commonwealth with certain responsibilities, and I presume that it also confers on it some power of interference with the operations of the States in the educational field. On the whole, the bill is ill-considered. I believe that it perpetuates the great evil of having different authorities carrying out similar, or, perhaps, identically the same work. A Commonwealth commission is to be established, and there is also to bea subsidiary committee in each of the

States. Were we to consider and debate the measure properly, we should probably discover weaknesses in it. It not only constitutes a new departure, but, above all, it provides for overlapping authorities in the matter of education.

Question resolved in the affirmative.

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

page 6611

SEAT OF GOVERNMENT SUPREME COURT BILL 1945

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator ASHLEY:
Minister for Supply and Shipping · New South Wales · ALP

.- I move-

That the bill be now read a second time.

The Supreme Court of the Australian Capital Territory must, under the existing act, be constituted by a judge of the Bankruptcy Court or the Commonwealth Court of Conciliation and Arbitration. Although this arrangement appears to have worked satisfactorily to date, some apprehension is felt lest pressure of work on these courts may give rise to delay in holding sittings of the Supreme Court at Canberra. I may mention that the court has already sat on nineteen days this year. It is now thought opportune to make provision for the appointment of a judge, whose first duty it will be to exercise the jurisdiction of the Supreme Court of the Australian Capital Territory. As the duties of his office will not fully occupy the time of the judge so appointed, it is proposed to make further provision that he may hold the office of Judge Advocate-General of any part of the Defence Force or any other office other than an office of profit, which the Governor-General may approve.

In addition to the duties of the office of Judge Advocate-General, which are expected to be heavy for a considerable time, the judge ‘will be available to make inquiries into matters for which, in the past, it has been necessary to ask the States to release a judge from their courts. This assistance has been willingly given, and the Commonwealth is under considerable obligation to the States, particularly as congestion in State courts has at times made it a matter of difficulty to release a State judge. In view of the nature of the duties attaching to the office of judge of the Supreme Court of the Australian Capital Territory, it is proposed that the salary of this office be fixed at £2,500 per annum, which is equivalent to that payable to a judge in bankruptcy, together with pension rights similar to those payable to such a judge.

Senator LECKIE:
Victoria

.- This is a bill to create a job at £2,500 a year for a man who will have practically nothing to do. At most, his duties as judge of the Supreme Court of the Australian Capital Territory will not occupy more than three or four weeks in each year. In his second-reading speech the Minister (Senator Ashley) said that the Supreme Court of this Territory had sat on only nineteen days this year. It is true that the bill provides that the person to be appointed to this well-paid office will be free to undertake other duties, such as that of Judge AdvocateGeneral of any of the fighting services, but there should not be much for him to do in that capacity now that the war is over. We are told that he may also act as a royal commissioner. We all know that from time to time the Government, under pressure, appoints a royal commission to make investigations, but almost invariably that means “ whitewashing “ and the Government comes out with a clean sheet.

Senator Keane:

– I thought the honorable senator had a high opinion of High Court judges.

Senator LECKIE:

– I do not believe in creating a special job at £2,500 a year for a man who will have practically nothing to do. I do not say that some person has already been chosen for this position ; I do not know whether or not a selection has been made, but the appointee, whoever he may be, will have very little to do. Such a position should not be created at a time when the Commonwealth is staggering under a heavy burden of taxation. In addition to the £2,500 a year to be paid to the judge, other expenses will be incurred in providing an associate, and in other directions. I cannot find words to express my horror at the flippant way in which the Government throws away the hardwon money of the taxpayers. The fund provided by them is not inexhaustible and, in any event, it exists only because people have worked hard to provide it. The least that the taxpayers of Australia have a right to expect is that their money shall be wisely expended. They will not be happy when they learn that £2,500 a year, plus a lot of extras, is to be paid to a man who will have little or nothing to do. However, the Government must accept the responsibility for this waste and for what may happen.

Question resolved in the affirmative.

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

page 6612

LOAN (HOUSING) BILL 1945

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Senator KEANE:
Minister for Trade and Customs · Victoria · ALP

– I move -

That the bill be now read a second time. The purpose of this bill is to obtain a loan appropriation of £15,000,000 to be applied in making advances to the States of capital funds for housing under the Commonwealth and State housing agreements. Under the proposed CommonwealthState agreements, the Commonwealth will advance the initial capital funds to the States, subject to stated conditions as to interest and repayments. These conditions are set out in clause 6 of the agreement in the schedule to the Commonwealth and State Housing Agreement Bill. Certain rental houses already erected by the State governments since December, 1943, are brought within this arrangement, and in respect of capital expenditure to the 30th June, 1945, for these houses and for sites already acquired, the States will require approximately £1,750,000. The loan programme for 1945-46, approved at the last meeting of the Loan Council, for rental houses under the agreements will require approximately £10,500,000. The balance of the £15,000,000 being sought in this bill will provide the necessary appropriation to enable the building programme to proceed in the early months of the financial year 1946-47, pending a further appropriation following consideration of the 1946-47 rental housing programme under the Commonwealth-State agreements.

Senator LECKIE:
Victoria

.- The Opposition has no objection to this bill, which is part of a programme under which moneys will be provided to the States for housing. The provision of money for that purpose is the easiest part of the programme; the supply of labour and materials and the actual construction of houses will be more difficult. I ask the Minister (Senator Keane) to take steps immediately to ensure that, in addition to this money, labour and materials shall be made available to the States, so that they may proceed at once with the work of providing homes for the people.

Question resolved in the affirmative.

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

page 6613

SUPPLEMENTARY APPROPRIATION BILL 1943-44

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator KEANE:
Minister for Trade and Customs · Victoria · ALP

– I move -

That the bill be now read a second time.

This bill covers the Supplementary Estimates of expenditure amounting to £2,015,-2-24 for the year 1943-44. The expenditure was made from the amount of £6,000,000 appropriated by Parliament for the use of the Treasurer in meeting unforeseen expenditure and specific parliamentary appropriation is now sought to cover the expenditure under the various headings.

The main items in round figures are -

Details of the expenditure have already, been submitted to honorable senators in the Estimates and Budget Papers for 1944-45. Any further information which may be desired will be made available in committee.

Senator LECKIE:
Victoria

.- This, of course, is a requiem bill, because this expenditure was incurred at least fifteen months ago, and the details of that expenditure were presented to us on a previous occasion. In these circumstances, the Opposition does not oppose the measure.

Question resolved in the affirmative.

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

page 6613

SUPPLEMENTARY APPROPRIATION (WORKS AND BUILDINGS) BILL 1943-44

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator KEANE:
Minister for Trade and Customs · Victoria · ALP

.- I move -

That the bill be now read a second time.

The bill provides for a supplementary appropriation for the year 1943-44 for additions, new works, buildings, &c. The total appropriation passed by Parliament was £4,870,000. Actual expenditure was £4,677,000 or £193,000 less than the appropriation. Certain items, however, show an increase over the individual amounts appropriated, due ‘to requirements which could not be foreseen when the Estimates were prepared and it is now necessary to obtain parliamentary approval of these increases. On the particular items concerned the excess expenditure totalled £319,754 which is spread over the works items of the various departments. Further information, if required, will be made available in committee.

Senator LECKIE:
Victoria

.- My remarks with respect to the Supplementary Appropriation Bill 1943-44 apply to this measure, because this expenditure also was incurred at least fifteen months ago. The Opposition does not oppose the bill.

Question resolved in the affirmative.

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

page 6614

WIDOWS’ PENSIONS BILL 1945

Bill returned from the House of Representatives without amendment.

page 6614

SPECIAL ADJOURNMENT

Motion (by Senator Keane) agreed to-

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

page 6614

LEAVE OF ABSENCE TO ALL SENATORS

Motion (by Senator Keane) - by leave - agreed to -

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

page 6614

ADJOURNMENT

Armed Forces: Civilian Clothing:

Statement by General Blamey: Casualties : Malayan Campaign ; Report by Lieutenant - General Percival - Defence Policy - Army Education Service- Volunteer Defence Corps - Communist Party ; Literature- Answers to Questions - Official Correspondence; Replies - Valedictory.

Senator KEANE:
Minister for Trade and Customs · Victoria · ALP

– I move -

That the Senate do now adjourn.

This morning Senator Sampson asked the Leader of the Senate, upon notice -

  1. Is it a fact that discharged servicemen find it impossible to obtain civilian clothing on the present amount paid to them for that purpose?
  2. How does the clothing allowance made to our forces on discharge compare with that made by Great Britain, Canada and NewZealand to their discharged personnel?
  3. Is it a fact that tailor-made civilian suits for ex-soldiers can only be obtained with difficulty and then only at exorbitant prices and after long delay?
  4. Will the Minister consider ways and means whereby the Commonwealth Government Clothing Factory may switch over to the manufacture of civilian suits for men awaiting discharge?
  5. If not, will he endeavour to have the present amount granted for civilian clothing to ex-servicemen substantially increased?

I have now received the following answers to the honorable senator’s questions : -

  1. No.
  2. The general conditions of pay and allowances and issue of clothing in the case of New Zealand and other forces are not the same as in the case of the Australian Military Forces. For example, members of the New Zealand forces receive deferred pay only in respect of service outside New Zealand, whereas all members of the Australian Military Forces receive deferred pay after six months’ service in Australia, or date of embarkation for overseas service (whichever is the earlier), and entitlement continues irrespective of the location in which they serve. The rate of deferred pay in the case of New Zealand forces is substantially less than in the case of the Australian Military Forces.
  3. No. A recent survey made by the Department of Supply and Shipping revealed that the larger Sydney and Melbourne city tailoring stores are supplying servicemen with made-to-measure suits within from four to eight weeks of date of order. The Australian Council of Retailers reached agreement with the Commonwealth that members of the retail clothing trade would afford priority to ex-servicemen as against civilians in the supply of civilian clothing.
  4. This matter will be examined from the point of view of policy. At present it is impracticable to make the suggested change.
  5. Very careful consideration has been given to the question of the value of the vouchers which are issued for the purchase of civilian clothing and it is not proposed to make any variation in these amounts at the present time.

Earlier to-day Senator Foll asked the Minister representing the Minister for Defence, upon notice-

Is it a fact that the Commander-in-Chief, Allied Land Forces, South-West Pacific Area (General Sir Thomas Blamey) has admitted that he attempted to blacken the record of a gallant soldier, viz., Major A. G. Cameron, a member of the Commonwealth Parliament, under the cloak of anonymity, thus committing a breach of Army Regulations; if so, what disciplinary action does the Government pro- vide to take in regard to the matter?

The Minister for Defence has supplied the following answer: -

The Government considers that the only aspect which called for action on its part was the principle of public statements by an anonymous Army spokesman. As stated by the Minister for Defence on the 27th September, such statements are a contravention of instructions and the Minister forthe Army has drawn the attention of the CoimnanderinChief to the matter.

To-day Senator Brand asked the Minister representing the Minister for the Army, upon notice -

  1. Can the Minister give any explanation why the number of Array casualties, 14,358, wounded or injured in Australia, was twice as manyas in the whole of the Middle East campaigns and three and one-half times as many as in the Papuan and New Guinea campaigns?
  2. What were the reasons why 1,887 were killed in Australia as against 1,402 killed in Malays, Java, Timor, and Ambon?
  3. Is there any explanation why the number of Army personnel killed in Australia is half of the total killed in the Middle East campaigns, which includes North Africa, Crete, Greece, and Syria?

This matter is being investigated, but advice will not be available in time to reply to the honorable senator to-day. The honorable senator will be informed of the result by memorandum.

Earlier to-day Senator Brand asked the Minister representing the Prime Minister, upon notice -

In order to ensure that the post-war defence policy is laid down on non-party lines, will the Government consider the appointment of a parliamentary committee to examine the recommendations of the heads of the three Defence services, and report to the Government before submission to Parliament?

The Prime Minister has supplied the following answer: -

The Council of Defence is considered to be a more appropriate body for the purpose mentioned than a parliamentary committee. Reference is made to the following statement to Parliament by the late Prime Minister on the 23rd March last: - “When the Advisory War Council is replaced in the post-war period by the peace-time Council of Defence, it is my intention, if I am the Prime Minister at the time, to invite the Opposition parties to be represented oil the council.”

This matter will be further considered at the appropriate time.

This morning Senator Collett asked the Minister representing the Minister for the Army, upon notice -

  1. What is the present strength in -

    1. officers,
    2. other ranks, of the Army Education Service?
  2. What was the cost of this service for the year 1944-45.
  3. What is the Government’s intention in regard to the future of this service?

The Minister for the Army has supplied the following answers: - 1. (a) Officers, 194; (b) other ranks, 706.

  1. Approximate cost of Army Education Service in 1944-45 was £475,492, approximately £350,000 representing cost of pay and allowances, and £125,492 for material and equipment.
  2. Sufficient personnel and facilities will be retained to enable members of, the military forces to receive adequate education service during the demobilization period.

To-day Senator Mattner asked the Minister representing the Minister for the Army, upon notice -

  1. Has Lieutenant-General Percival, who was General Officer Commanding British Forces in Malaya and Singapore at the time of the sur render in 1942, submitted a report to the Government on these operations?
  2. Has the Commander-in-Chief, Allied Land Forces, South-West Pacific Area (General Sir Thomas Blamey), been supplied by Lieutenant-General Percival with a report on these operations?

The Minister for the Army has supplied the following answers: -

  1. No such report has been received by the Minister.
  2. No advice has been received by the Minister from the Commander-in-Chief to this effect.

This morning Senator Cooper asked the Minister representing the Minister for the Army, upon notice -

  1. Isita fact that the Volunteer Defence Corps has been disbanded?
  2. If so, will the Minister consider granting to former members of the Volunteer Defence Corps, especially those engaged in rural activities, an opportunity of purchasing the rifles, water bottles and dixies previously held by them ?

The Minister for the Army has supplied the following answers: -

  1. Yes.
  2. Yes. Consideration will be given to this request.

Answers which have not yet been supplied will be posted to the honorable senators concerned.

As this will be our last meeting before the end of the year, I desire to pay a tribute to you, Mr. President, for the able manner in which you have conducted the business of this chamber. I am sure that every honorable senator agrees that you have discharged your duties with dignity and have given complete satisfaction. Similarly, the Chairman of Committees (Senator Courtice) has rendered excellent service and has given allround satisfaction. To the members of the Opposition I say, as Leader of the Senate, that I appreciate the help which they have given to Ministers during the very trying and lengthy sittings this year. Every honorable senator has experienced a great deal of strain during what has been one of the longest series of sittings in the annals of this or any other Parliament. The fact that during the greater . part of the time we were still engaged in a most devastating war imposed great nervous strain on every honorable senator both personally and in his capacity as a member of the National Parliament. “We have had some very healthy differences of opinion in this chamber. I know that the Opposition will appreciate that it has been necessary for a great deal of important legislation to be passed this year, sometimes hurriedly. However, on no occasion did the Government stifle discussion. It cannot be said that the Opposition has been gagged or that any opportunity to discuss business has been withheld. I agree with Senator Leckie that it is not good for a large volume of business to be left for consideration at the end of a session. However, that is sometimes unavoidable. It has happened to every government. I hope that we shall be able to do better next year. “We owe a tremendous debt to the Clerk of the Senate, the Clerk Assistant and other officers of the Senate. The Clerk has been helpful to every honorable senator in giving guidance on procedure and in supplying information of which we were in need. As usual, the members of the Hansard staff have done a “king job “. I know of no other activity with which I have been connected in which a member can make ia speech, have it transcribed, sent to a printer and returned to him within a very few hours. The absence of errors in the record of the proceedings of this National Parliament is creditable. I have not seen any similar organization to equal that of the Commonwealth Hansard staff, and I pay a high tribute to its members. The men of the Government Printing Office have a very onerous task to perform. The transaction of business by the House of Representatives and the .Senate, involving amendments to bills and a great deal of consequential printing work, requires rapid and accurate work on the part of the staff of the Government Printing Office. This work has been done exceedingly well. In the final analysis, the working of the machinery of this Parliament depends on the men in the Government Printing Office, and they have done a magnificent job. “We also owe a great debt to the staff of the Parliamentary Refreshment Rooms. Although these men and women work for long hours when Parliament is in session, they are very courteous and give us excellent service. On behalf of the Government I express the fervent wish that all honorable senators will enjoy a vacation before we re-assemble, that in the Christmas season they will at least have easier minds than at the same time last year, and that, after a happy Christmas, we shall return to do more work in the interests of Australia.

Senator McLEAY:
Leader of the Opposition · South Australia

– On behalf of the Opposition I, too, express to you, Mr. President, our appreciation of the manner in which you have carried out your responsible duties and of the assistance we have received from the Clerk of the Senate and the Clerk Assistant. I thank all members of the parliamentary staffs who have done so much to bring about the smooth working of. the Senate. It is not necessary for me to refer in detail to those who were mentioned by the Leader of the Senate,, but I include them all in my expression of good wishes. Senator Leckie may also be included on account of the extra work which he did in my absence. The sittings were strenuous for the Leader of the Senate (Senator Keane) and Senator Leckie in particular, as well as for other honorable senators. The Leader of the Senate has displayed courtesy in leadership which we all appreciate. We all are pleased and grateful that the war ended before the Christmas season.

On behalf of the Opposition I desire to say how sad we are that one of our colleagues, Senator Nash, had the misfortune to lose two of hia gallant sons during the war. To other members of this Parliament, who have made similar sacrifices, including the Minister for Health and Social Services (Senator Fraser) and to ex-Senator McBride, I say that our thoughts and prayers will be with them at the Christmas season, as they will be with all those in Australia for whom the war involved painful personal sacrifices.

The PRESIDENT (Senator the Hon Gordon Brown:
QUEENSLAND

– I thank the Leader of the Senate -(Senator -Keane) and the Leader of the Opposition (Senator MoLeay) for their kind expressions of goodwill to myself as presiding officer in this chamber. Although my job is not a difficult one, I admit frankly that there are occasions on which I am somewhat bored by the speeches delivered in this chamber. I am sure that honorable senators will realize that when one, who for so many years took an active part in the debates in this chamber, has to listen impartially each day to one’s political opponents - of course I retain my membership of the Labour party - using arguments which one believes could easily be refuted on the floor of the Senate, one is inclined to become somewhat restive. Often I feel that I would like to get into the fight.

I pay tribute to the officers of the Senate, notably the Clerk, Mr. Edwards, and the Clerk Assistant, Mr._ Loof, whose thorough knowledge of their work makes -my task and that of the Chairman of Committees much easier. I express my appreciation also of the work of the members of the Hansard staff, who, as we all know, have the ability to produce very good speeches, although occasionally they omit some of the more colourful expressions used by honorable senators, ‘which might be quite interesting to the general public. On occasions, whilst speaking on the floor of the Senate, I have noticed that some of my more dramatic expressions have not appeared in Hansard, no doubt, because the editors were thinking of my interests at the next elections. Of course, if all the language used by honorable senators - I refer not only to the language employed in speeches, but also the language which one hears in asides - were reported, I am afraid that the prospects of some honorable senators would not bc improved at election-time.

I pay a special, tribute to the staff of the Parliament as a whole. These officers do a splendid job. Many people do not understand the work of the Parliament. Possibly some visitors in the public galleries to-day did not understand our procedure, but the procedure to-day was unusual. Behind the work of the Parliament itself is the untiring labour of hundreds of officials who are to be commended for their earnestness and efficiency.

I trust that we shall all meet here again when Parliament resumes, and that honorable senators will be able to carry on their good work for Australia.

Senator BRAND:
Victoria

.- I have before me a pamphlet authorized by the Australian Communist party, copies of which were handed to all who attended a talk by Mr. Ralph Gibson at the Melbourne University on Wednesday, the 3rd October. It is headed - “ Hands Off the Indonesian Republic “. I draw attention to the following words under the heading “ What Must We Do? “ :-

Are we to shed the blood of the Indonesian people for the profits of British and Sutch exploiters 1

Are we to join hands with the Japanese murderers of Australian soldiers and prisoners of war?

Are we to repeat the crimes of 1918-19 when British and German forces combined to crush the yoting Soviet Republic of Russia!

Australians must give their answer now!

Stop troops or supplies intended for this dirty work I

Assist Indonesian crews now on strike in Melbourne !

This is a deliberate attempt by these enemies of constitutional government to incite Australian citizens to unlawful practices. ‘ We, in the legislature of the country must surely demand that the Government, charged with the responsibility of administering the statutes, should take immediate action against the Communists, who have, by this latest action, shown their contempt for the laws of the land. I hope the Minister representing the Acting Attorney-General in this chamber will indicate before the Senate adjourns whether action will be taken against these Communists.

Senator COLLETT:
Western Australia

– I am glad to have an assurance from the Minister for Trade and Customs (Senator Keane) that answers to questions not yet answered will be forwarded to honorable senators. I believe that a similar promise was made on a previous occasion, but, unfortunately, it was not carried out, and honorable senators have been inconvenienced by having to wait three or four months for information. There seems to be undue delay also in answering the official correspondence of honorable senators. I understand that government departments are busy, but these delays are increasing and I trust that action will be taken to improve the position. I bring to the notice of honorable senators a case in which the delay seemed to me to he unreasonable. I submitted a recommendation to a Ministor, but received no answer until I sent a “ chaser “. After some further delay I received a reply, but only to find that its contents had been published in the press a week previously. Such happenings are very embarrassing to honorable senators, and I hope that they will not occur in future.

Senator ASHLEY:
New South WalesMinister for Supply and Shipping · ALP

– I am not in a position to indicate to Senator Brand what action will he taken in relation to the matter which he has mentioned, but I shall bring to the notice of the Acting Attorney-General the pamphlet which the honorable senator has produced, with a view to appropriate action being taken.

Question resolved in the affirmative.

page 6618

PAPERS

The following papers were pre sented : -

Australian Wool Board - Ninth Annual Report, for year 1044-45.

Darwin - Inquiry concerning the circumstances connected with the attack made by Japanese aircraft on 19th February, 1942 - Reports of the Commissioner (Mr. Justice Lowe) appointed under the National Security (Inquiries) Regulations, dated 27th March, 1942, and 9th

April, 1942; together with observations thereon by the Departments of the Navy, Army, Air and Interior.

Canned Fruits Export Control Act - Nineteenth Annual Report of the Australian Canned Fruits Board, for year 1944-45, together with Statement by Minister regarding the operation of the Act.

Dried Fruits Export Control Act - Twentyfirst Annual Report of the Commonwealth Dried Fruits Control Board, for year 1944-45, together with Statement toy Minister regarding the operation of the Act.

Meat Export Control Act- Tenth Annual Report of the Australian Meat Board, for year 1944-45, together with Statement by Minister regarding the operation of the Act.

National Security Act-

National Security (General) Regulations - Orders -

Control of -

Footwear (Styles and quality) (No. 7).

Highways - Revocations (2).

Prohibited places - Revocations (25).

Protected area - Revocation.

National Security (Shipping Coordination) Regulations - Order - No. 104.

Regulations - Statutory Rules 1945, No. 154.

Seat of Government Acceptance Act and Seat of Government (Administration) Act - Ordinance - No. 10 of 1945 - Gaming and Betting.

Wine Overseas Marketing Act - Seventeenth Annual Report of the Australian Wine Board, for year 1944-45, together with Statement by Minister regarding the operation of the Act.

Senate adjourned at 3.2 p.m. to a date and hour to he fixed by the President.

Cite as: Australia, Senate, Debates, 5 October 1945, viewed 22 October 2017, <http://historichansard.net/senate/1945/19451005_senate_17_185/>.