Senate
27 October 1949

18th Parliament · 2nd Session



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

page 2109

QUESTION

PARLIAMENTARY REFRESHMENT ROOMS

Senator MURRAY:
TASMANIA

– I direct a question to you, Mr. President, as Chairman of the Joint House Committee. The matter that I am about to mention reflects not only on the integrity of the parliamentary catering staff, but also on members of both Houses of the Parliament. Has your attention been drawn tothis report in the Sydney Sun of last Wednesday, the. 26th October - politicianseatillegalfish,sayanglers.

Yass, Wednesday. - Fish caught illegally in the BurrinjuckDam was going to Parliament House, Canberra, every week . .. . Murray cod and trout were being caught out of season in nets, and by dynamitingpools in streams feeding the dams.

As an angler, I realize the great damage that the dynamiting of fish does. In addition to destroying the large fish, it also damages the ova and fingerlings in the streams. In Tasmania a person responsible for dynamiting streams would be very harshly dealt with. I direct your attention to the statement that as a result of this alleged illegal dynamiting of streams, fish is forwarded to Canberra weekly for the embellishment of the tables in the parliamentary diningrooms.

The PRESIDENT:

– Order! The honorable senator must . now ask his question.

Senator MURRAY:

– Are you, sir, in a position to say whether it is true that politicians are, as reported, eating fish illegally obtained?

The PRESIDENT:

– My attention has been drawn to the article in the Sydney Sun of Wednesday, the 26th October. In fact, I have the newspaper article before me. I have made it my business, as Chairman of the Joint House Committee, to interview Mr. Johnson, the manager of the parliamentary refreshment rooms. He had seen the article, and was, of course, naturally very resentful. He stated that duringthe whole of the time that he has been manager of the parliamentary refreshment rooms he has never bought any fresh-water fish. He purchases fish from Bell’s, of Queanbeyan, Fisk Brothers, of Narrabundah, and the Civic Fish Supply, of Canberra. He purchases all saltwater fish, such as schnapper, Tasmanian trumpeter, and sea bream.

Senator Ashley:

– Does he buy any shark?

The PRESIDENT:

– I have heard that occasionally fishmongers do sell shark as other fish. Possibly we have eaten it. I do not know. I am not one to judge. I like fish, and do not care whether it comes from freshwater or from the sea. But joking aside, I have noticed that the pressmen - although I do not blame them so much as the owners of the newspapers - never lose an opportunity to attack members of the Parliament. Personally, I think that they are wrong, because Parliament is an institution which, instead- of being decried, should be upheld, especially as we are in. such, grave danger to-day of having our democratic institutions destroyed. I inform the people of Australia that pressmen enjoy the same privileges in the parliamentary refreshment rooms aa do members of the Parliament. They eat in the dining room and, if any illegally caught fish are served there, pressmen also have been eating them. How refreshing it would be if we could pick up the Sun or some other newspaper one day and read, “ Pressmen eat illegal fish, say anglers “. It would be a change from the usual attacks upon politicians. I urge pressmen to tell’ the truth about such things on future occasions instead of criticizing the parliamentary refreshment rooms and their manager. The fact is that no fresh water fish, from Burrinjuck or elsewhere, come to the parliamentary refreshment rooms. Members of the Parliament who have read the article need not be disturbed. They can go to bed at night comforted by the knowledge that they have not been eating illegally caught fish.

page 2110

QUESTION

COAL

Assistance, to TASMANIA: Newspaper Report.

Senator O’BYRNE:
TASMANIA · ALP

– I address a question to you, Mr. President, on a matter of privilege. Recently, I gave some information to- a Mr. Teese, a reporter for the Australian United Press, concerning the proposed legislation for the assistance of the coal industry in Tasmania. I informed him that the legislation would give the Government of Tasmania an opportunity to share with the Joint Goal Board in development work in that State. The report that was printed in the Hobart. Mercury on Friday, the 21st October, under the big headline, “ Millions Allotted for Tasmanian Coal Development under New Plan “, contained the following statement : -

The Commonwealth would supply £3,000,000 worth of machinery to develop the coal industry in Tasmania under a new Joint Coal Board arrangement, Senator O’Byrne (Labour, Tasmania) said to-night.

That was a complete distortion of what I had said. Standing Order 427 provides -

Any Senator complaining to the Senate of a statement in a newspaper as a breach of

Privilege, shall produce a cop; of the paper containing the statement in question . . .

Will you, Mr. President, inform mewhether the rather damaging statement and complete distortion that I havequoted involves a breach of privilege?

The PRESIDENT:

– My attention was drawn by Senator O’Byrne to thearticle that he has mentioned and I read it. I was assured by the honorable senator that he had made no such statement. I think that I am correct in saying that the report involves no breach of parliamentary privilege. Some years ago, Mr. President Givens gave a ruling in which he said -

Newspaper criticism is not a breach of privilege unless something ib done to coerce or impede members or bring Parliament into contempt.

I believe Senator O’Byrne’s statement that the report of which he ‘has complained is untrue. Possibly the newspaperman wanted to strengthen the statement by adding some imaginary statement of his own. Although it was entirely wrong on the part of the newspaperman to make that distorted report,-. I cannot see in it any .breach of privilege. It has not brought the Parliament into contempt. Furthermore, the statement upon which it was based was not made within the precincts of this chamber. We have to make a distinction. The newspapers can lie and they do lie on many occasions, sometimes deliberately and sometimes not deliberately.

Senator Cooper:

– That is true.

The PRESIDENT:

– My statement has been confirmed by the Leader’ of the Opposition (Senator Cooper). On the occasion in question, a newspaper published a statement which was untrue but as it did not bring the Parliament into contempt, I cannot say that the report involved a breach of privilege. But, as President of the Senate, I say to the press that it is up to the newspapers to be truthful in the statements that they publish concerning members of the Parliament. During the last few years attacks have been made constantly upon the Parliament as an institution. The Parliament has been misrepresented and lied about. It ill-becomes any newspaper to decry the Parliament. As I have said on previous occasions, a special responsibility rests upon the press in this respect, particularly in view of the struggle that is going on to maintain our democratic institutions. I sympathize with Senator O’Byrne because the statement to which he has referred will have ill effects upon him as a representative of Tasmania. Upon reading such a statement the people of that State would think that he was making extravagant statements. I have perused the statement that he actually did make, and it contained no mention about £3,000,000 worth of machinery being supplied. The proceedings of the Senate are now being broadcast and to that degree Senator O’Byrne will have had some redress because people in Tasmania who may be listening to the broadcast will have heard the truth as it has been presented by Senator O’Byrne and myself.

page 2111

QUESTION

BANKING

Senator COOPER:

– In view of the Privy Council’s decision that the Government’s attempt to nationalize the private trading banks was an infringement of section 92 of the Constitution relating to freedom of trade between the States, is the Minister for Shipping and Fuel prepared, before the Parliament goes into recess, to give an undertaking to the people that the Government will discontinue its policy of nationalization and so save the taxpayers enormous sums of money such as it has incurred in legal costs in pursuing these fruitless projects?

Senator ASHLEY:
ALP

– The Leader of the Opposition is still running true to form. This being the last day that the Parliament will sit before going into recess, he probably wants to put over a little more party political propaganda. He asks me to give a guarantee before the Parliament rises that the Government will not nationalize any more industries. I point out to him that the Government has not nationalized industries to the degree that he has suggested, and that the only industries that it would nationalize, provided it had the power to do so, would be those that were not being conducted in the interests of the nation or were exploiting the people. That principle is set out in the platform of the Australian Labour party. That is the only answer that I can give to the honorable senator. .Should it be brought to the notice of the Government after the next general election that any industry is exploiting the people, the Government will take steps to rectify the position and, provided that it has the power to do so, it will if necessary nationalize that industry.

Senator AYLETT:
TASMANIA

– In view of the Privy Council’s decision, I ask the Minister representing the Attorney-General whether the Australian Government, regardless of its party political complexion, has power under the Constitution to nationalize the private trading banks?

Senator McKENNA:
Minister for Health · TASMANIA · ALP

– I am loath to embark upon any dissertation regarding the Privy Council’s decision by reason of the fact that the elements in it are coming to us piecemeal, and it is a very risky process to seek to draw firm conclusions from extracts from the judgment of the Privy Council. But it does appear, according to newspaper reports, that the Privy Council has decided that section 92 of the Constitution prevents the nationalization of banking from proceeding. It appears that although there is a specific head in the Constitution dealing with banking, the Privy Council has held that banking is trade and commerce - an element of power set out in an entirely different placitum. I can assure the honorable senator that the Commonwealth’s powers to nationalize anything are extraordinarily limited. The Commonwealth has no power at all in fields of activity within the boundaries of a State. It has a very limited power over interstate trade. The limit has been emphasized by recent High Court decisions. In one case involving the Australian. National Airlines Commission, by which the Commonwealth sought to create a monopoly for its own airlines where adequate services were provided, the High Court held that section 92 of the Constitution prevented that from being done. There is a further instance in the decision that has now been given by the Privy Council, confirming the earlier decision of the High Court that although there is a specific head of power in section 51 of the Constitution containing the words “ banking other than State banking “ and a layman might reasonably be expected to take those words to mean a complete grant of power over the subject-matter, that placitum is subject to the provisions of section 92 and that, as there is an interstate element in the trade conducted by banks, the Commonwealth may not take any action that would have the effect of creating a monopoly for a government bank. If the reports that have appeared so far of the Privy Council’s reasons for its decision are correct - and I emphasize the word “ if “ - it seems to bc completely clear that the Commonwealth cannot proceed in that matter. I may add, in answer to the honorable senator, that I find it difficult to conceive any activity that the Commonwealth could in fact nationalize, having regard to the decisions of the superior courts of this country.

page 2112

QUESTION

AIR MAIL SERVICES

Senator TANGNEY:
WESTERN AUSTRALIA

asked the Minister representing the Minister for Civil Aviation, upon notice -

  1. Is it a fact that, under the existing air mail services, it sometimes takes up to seventeen days to transport air mail between South Africa and Australia, which is greater than the time taken to transport mail by sea?
  2. Will the Minister indicate when tho proposed direct air services will be opened between Western Australia and South Africa, or what progress has been made with the negotiations connected therewith?
Senator CAMERON:
Postmaster-General · VICTORIA · ALP

– The Minister for Civil Aviation has supplied the following answers: -

  1. Ari examination of a recent month’s arrivals of air mail from South Africa has shown that the average time for the transport of air mail from Johannesburg to Sydney was only seven clays and that on only two occasions was nine days exceeded. On some occasions, if for some cause, connexions cannot be made promptly in the Middle East, then the average time of seven days might be exceeded, but this would be only on rare occasions.
  2. As is already known, a survey flight between Australia and South Africa via Cocos Island was successfully conducted by Qantas Empire Airways in November last year. Since then, detailed inquiries have been proceeding to determine the practicability of establishing a regular service over this route, but these are not yet completed. The biggest single factor affecting the decision is the present lack of adequate facilities at Cocos Island for a regular service and the cost of providing and maintaining such facilities. Discussions on this matter are proceeding with the United Kingdom authorities.

page 2112

QUESTION

CIVIL AVIATION

Senator SANDFORD:
VICTORIA

asked the Minister representing the Minister for Civil Aviation, upon notice -

What amount of money is owing to the Government by private airline companies for aerodrome, navigation and other services provided by the Government for their use?

Senator CAMERON:
ALP

– The Minister for Civil Aviation has supplied the following answers: -

The amounts owing in respect of air route charges as at the 30th September, 1949, were as follows: -

page 2112

PRINTING COMMITTEE

Senator COOPER:

– I present the Third Report of the Printing Committee.

Report - by leave - adopted.

page 2112

INCOME TAX ASSESSMENT BILL 1949

Second Reading

Debate resumed from the 21st October (vide page 1806), on motion by Senator Ashley -

That the bill be read a second time.

Senator COOPER:
Leader of the Opposition · Queensland

.-This bill seeks to amend the Income Tax Assessment Act 1936-1948, by extending the -depreciation allowance for wear and tear on plant and machinery, increasing the concessional rebate on tax allowed for life assurance premiums and contributions to superannuation funds from £100 to £150, and allowing credit to taxpayers for tax instalments stamps purchased, but destroyed before presentation in payment of tax. I point out that in 1945 legislation was introduced to permit deductions of up to 20 per cent of the amount expended on improvements to plant to offset depreciation. That scale of exemption was to continue until the 30th June, 1950. The present bill proposes to extend the operation of the measure to the 30th June, 1952, and to increase the exemption to 40 per cent. Accordingly, the measure should benefit considerably thosewho have been able to improve their plant, but it will not afford any real benefit to those who have been unable to obtain the machinery necessary to do so.

The increase of allowable deductions for payments by taxpayers for life assurance premiums, superannuation contributions and payments to friendly societies from £100 to £150 will confer some relief on those who are fortunate enough to be able to spend £150 a year on provident payments of the kind mentioned. For instance, all members of Parliament, including myself, will benefit from the measure. I need hardly point out, however, that in the lower income groups, not many people are able to afford to pay £150 a year for life assurance or superannuation benefits. Having offered that criticism of the measure, I do not propose to impede the passage of the bill because any relief from taxation is most welcome.

Question resolved in the affirmative.

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

page 2113

COMMONWEALTH AID EOADS AND WORKS BILL 1949

Second Reading

Debate resumed from the 21st October (vide page 1808), on motion by Senator McKenna -

That the bill be now read a (second time.

Senator COOPER:
Leader of the Opposition · Queensland

.- The bill has the blessing of the Opposition. Its purpose is to provide an additional sum of £1,000,000 to the States for the construction and repair of roads in sparsely populated areas. Members of the Opposition consider that the expenditure of money on country roads is always justified, and that the amount expended should, if possible, be increased. Two years ago, £1,000,000 was appropriated for expenditure on roads by State authorities, last year that amount was increased to £2,000,000, and during the current financial year it is proposed to expend £3,000,000. We all know that because of higher wages, due to the increased cost of living, and the higher price of roadmaking machinery, the costs borne by State and local authorities which have to maintain roads have increased considerably during the last few years. Of course, that type of machinery has been very difficult to procure. In this country we are becoming dependent more and more on road transportation. About eighteen months ago I travelled great distances into the interior of Queensland by road during the railway strike. As a result of that experience I am able to understand fully what difficulties the people of the outback have to contend with in the matter of transportation by road. The necessity for the provision of good all-weather roads and the construction of bridges over rivers and creeks was apparent to me. Although some of the roads in the outback areas are good, the great majority of them are only tracks. After heavy rain or floods the people in those areas are at times isolated for considerable periods. The Opposition contends that the whole of the proceeds of the petrol tax should be used for the purpose for which it is collected. I am convinced, also, that some honorable senators on the Government side of the chamber subscribe to that view. That money should be used to provide a benefit for the people from whom it is collected.

Senator Armstrong:

– That is a fallacious argument, which could not be applied generally.

Senator COOPER:

– The petrol tax is a special tax imposed on a certain section of the community.

Senator Ashley:

– Smokers are subjected to a sectional tax, also.

Senator COOPER:

– The tax on tobacco is essentially a luxury tax, but the petrol tax is a tax on commerce and industry. It is a tax on the whole of the economy of this country. Of course I give the Government credit for the fact that the proportion of the proceeds of the petrol tax that is paid to the States has been gradually increased until it is now about 50 per cent, of the amount cOl.lected. If, perchance, Labour is returned to office at the forthcoming general election, I trust that the policy of increasing progressively the amounts remitted to the States will be pursued so that improvements can be effected not only in connexion with the outback roads but also in connexion with the roads nearer to the cities. The Opposition is thoroughly in agreement with this bill and the purpose for which it is being produced.

Question resolved in the affirmative.

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

page 2114

STATES GRANTS BILL (No. 2) 1949

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 Shipping and Fuel · New South Wales · ALP

– I move -

That the bill be now read a second time.

The purpose of this bill is to provide for the payment during the current financial year of special grants aggregating £11,054,000 to the States of South Australia, “Western Australia and Tasmania. The payment of these grants was recommended by the Commonwealth Grants Commission in its sixteenth report which has already been tabled in the Senate. In arriving at its recommendations the commission has, as in the past years, adopted the principle of financial needs, which means that the special grants are intended to enable the recipient States, by reasonable effort, to function at standards not appreciably below those of the other States. Full details of the calculations are set out in the commission’s report. In assessing the grants the commission has made a careful examination of the finances of the claimant and non-claimant States in 1947-48, the latest year for which audited figures are available, and has arrived at standards based on the financial position and practices of the non-claimant States in that year. The commission has again adopted a balanced budget standard in arriving at the initial approximation to the assessed grants, and has then made adjustments to these initial amounts to take account of differences as between the claimant and nonclaimant States in standards of social services expenditure, in the rates of taxation, and the charges of State business undertakings. The last item is the subject of adjustment by the commission for the first time this year. The net amounts arrived at after making these adjustments aggregate £7,396,000 and represent the assessed grants for the year of review 1947-48.

In recent years the finances of the States have tended to deteriorate substantially between the year of review and the year of payment, and the commission has therefore followed the practice of recommending, in addition to the grants assessed on the year of review, advance payments designed to bring the grants into line with the indispensable needs of the States in the year of payment. Because of the extent of the deterioration in recent years, however, grants recommended for payment each year have tended1 to be less than the grants subsequently assessed on that year. This has, left the claimant States with fairly substantial deficits. In order to meet this situation, the grants recommended by the commission this year consist of two parts. The first part represents the difference between the grants now assessed for 1947-48 and the grants actually paid in that year. The amount involved’ is £1,354,000, and payment of this amount is intended to recoup the States concerned for the deficiency in the grants actually paid in 1947-48. The second part of the grants, amounting to :£9,700,000, represents the commission’s estimate of the indispensable needs of the claimant States in the current financial year. This part will be treated by the commission as advance payments to be finally adjusted two years hence when, in accordance with the procedure that I have described, the grants for this year will be assessed on the basis of the final audited results.

Last year the special grants to the claimant States amounted to £7,450,000. The grants now recommended involve an increase of £3,604,000 over last year. Of this amount, South Australia will receive an additional £1,324,000, Western Australia £2,018,000 and Tasmania ;£262,000. In arriving at the grants recommended, the commission has taken -account of the prospective shares of the claimant States in the coal strike emergency grant and the tax reimbursement grant, which together should’ give them about £3,315,000 above last year. As the special grants now proposed involve an increase this year of £3,604,000, the total increase arising from the three payments to the claimant States in 1949-50 amounts to nearly £7,000,000. The Government, after carefully considering the report of the commission, has decided that, as in past years, the commission’s recommendation should be adopted. The report indicates that, whilst adhering to the general principles which have been proved over “the years, the commission has preserved due flexibility in its methods in order to meet changing circumstances and to further the objective of maintaining a proper relationship between the financial positions of the claimant and non-claimant States, so ensuring that all members of the federation are in a position to operate for the greatest benefit of the whole.

Senator COOPER:
Leader of the Opposition · Queensland

– The Opposition is in agreement with the purposes of the bill. This year it is proposed to make special grants aggregating £11,054,000 to South Australia, Western Australia and Tasmania. The accounts of the applicant States have been carefully scrutinized by the Commonwealth Grants Commission. The commission has been in existence for sixteen years, and throughout that period it has done its work thoroughly and with complete satisfac tion. The Opposition agrees that the proposed grants are necessary and has no wish to impede the passage of the bill.

Question resolved in the affirmative.

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

page 2115

TEMPLE SOCIETY TRUST FUND BILL 1949

Bil] 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 Shipping and Fuel” · New South Wales · ALP

– I move-

That the bill be now read a second time.

The purpose of the bill is to create by statute a secure procedure for the reception, administration and disbursement of certain moneys received by the Australian Government on behalf of a group of nonJewish migrants from Palestine known generally as “ Templars “ or members of the Temple Society. The Temple Society is a religio-economic society whose original members migrated from Germany to Palestine between 1860 and 1870 for “the spiritual and economic, development of the Holy Land “. By the use of communal funds and a communal organization sustained by religious motives, members of the society gradually established urban and rural colonies at Haifa, Jaffa, Sarona, Jerusalem, Bethlehem and elsewhere in Palestine, and by the outbreak of World War II. had developed them into flourishing and lucrative communities. Economically, they derived their wealth mainly from the primary products of their rural colonies which, scientifically irrigated and cultivated, were for the most part divided into citrus orchards, vineyards and dairy farms. Members of the Temple Society did much to raise the standards of scientific agriculture in Palestine. Although at the outbreak of the recent world war the society in general had been for 80 years in Palestine, and the majority of its members then living had never seen

Germany, they had remained predominantly of German stock and had not lost their German nationality. Therefore, when Palestine became a strategic war area of great potential importance in 1941, the Palestine Government found it necessary, as a precautionary measure, to move the majority of these Templars from Palestine. With the agreement of the Australian Government, 574 men, women and children of the society were received in Australia as internees, and they remained in Australia as such during the war years.

By 1946 it was clear that Templars in Australia would be unable to re-establish themselves in Palestine; they had no desire to be transported to Germany, the Allied Control Commission of which was, in any case, not ready to admit them ; the Commonwealth Government was not anxious to be burdened with their internment indefinitely; and they themselves had applied to settle in Australia. They were, therefore, referred for investigation to Mr. Justice Hutchins of the Supreme Court of Tasmania, who was then acting as a commissioner of inquiry in respect of such applications. In the final result, Mr. Justice Hutchins recommended that, of the Temple Society, 504 men, women and children should be permitted to remain in Australia, and that 70 should be deported or voluntarily repatriated to Germany. This recommendation was approved and put into effect.

Mr. Justice Hutchins, who had complete access to overseas and local intelligence reports upon the political affilia-tions, character and conduct of members of the Temple Society, and who examined each case individually, made these comments upon them in his reports: -

Generally speaking, they are practical men of standing and of peace . . . Clearly these men and .their families whom, with a few exceptions, I have certified as of no security risk, have no need to be kept behind barbed wire any longer . . > . In their case, as in others, I have to the best of my ability endeavoured to sift those who have proven bad records from those who have not, and I am happy to say that the great majority of these men and their families to my satisfaction have not been shown to be dangerous to the security of this country or the Empire . . These men. in the main farmers, have, as is well known, been anxious for many months to settle in Australia . . . Any detailed unbiased examination of their previous history will not support, in the main, any allegation which is contrary to the opinion I have above expressed . . . The great majority of them have every intention of applying for Letters of Naturalization and will become British subjects . . . There are many others (in Palestine), who alsohold property, desirous of settling in Australia . provided that they know that their very considerable assets even in part will in the end be made available to them. In this way, Australia could secure people who apparently are desirable workers in primary industry.

Upon their release from internment, Templars in Australia requested the Minister to grant landing permits to members of the society who still remained either in Palestine or in Germany, and to assist them officially in the liquidation of their valuable Palestinian assets and the transfer of the proceeds to Australia. They were informed that, with the exception of a few special categories, Templars in Germany, like other German nationals, would not become eligible for admission to Australia until after the conclusion of the Peace Treaty with Germany. As the result, however, of the work of a Commonwealth Government mission sent to Palestine in April, 1948, a further 270 Templars from Palestine who, among others, had been evacuated to Cyprus for their own safety, were selected for migration to Australia and have since joined their relatives in this country; and arrangements were made for the sum of approximately £3,500,000 sterling, derived for the most part from the liquidation of the Templar colony at Sarona, and then vested with other German assets in the Palestine Government, to be transferred to the United Kingdom Government for eventual disbursement to Templars in Australia. Part of this money has been received by the Commonwealth Government and, with the approval of the Treasurer, and as an emergency measure, a sum of £100,000 has already been distributed to individual Templars to relieve their immediate needs. The remainder of the money should arrive in Australia shortly after the completion of certain necessary audit and legal processes in the United Kingdom.

This sum of approximately £3,500,000’ sterling is by no means the only amount which the Commonwealth Government expects to receive for disbursement to Templar migrants. Because of unsettled conditions in Palestine immediately prior to and since the close of the British Mandate on the 15th May, 1948, much the greater part of Templar property in Israel still remains unsold. It is believed and hoped that the Israeli Government will grant facilities for the liquidation of remaining Templar property in Israel, and for the transfer of the proceeds to the Commonwealth Government for disbursement to these, its new citizens and settlers.

The moneys now in question are not public funds in the ordinary sense of the words; they arc migrants’ funds. It is important, therefore, that they should be distributed and used in the best interests of Australia and of the migrants themselves. It would not be in the best interests of Australia, to quote merely one example, were these funds to be used for the establishment of large alien colonies. Templars have been permitted to settle in Australia on the express understanding that they will not form large alien colonies such as they were accustomed to in Palesttine. As it is important also that these funds should be distributed in the interests of Templar migrants themselves, some priority in distribution is given to those who are in greater need, and to those who desire to give themselves to primary or other production in the national interest. And, generally, it must be assured, of course, that each Templar receives the proportion of these moneys to which he is justly entitled. The interests of Australia and the interests of these migrants themselves can be safeguarded most effectively by such a measure as is now before the Senate.

The nature of these moneys makes it obvious that a special trust fund should be created to receive them and that, like other trust moneys held by the Commonwealth Government, they should be subject to the provisions of the Audit Act 1941-1948. Furthermore, there is no valid reason why the Commonwealth Government should be subject to expenditure in connexion with the administration of this fund or with the immigration of these migrants to Australia. Members of the Temple Society, in any case, have voluntarily offered to defray any such expenditure.

It must be pointed out that some small proportion of these funds will be found to be attributable to certain non-Templars resident in Australia and elsewhere. The records of the former Palestine Custodian of Enemy Property, which have been received in Australia, are so voluminous and interconnected that, prior to their transfer to Australia, it was impracticable for the Palestine and United Kingdom Governments to isolate moneys and supporting records pertaining to members of the Temple Society from those pertaining to certain other persons. Consequently, this measure provides that disbursements from the fund shall be made in Australia to resident members of the Temple Society and to certain other residents who have a claim upon these funds, for example, to some few non-Templar German or former German nationals who were transported to Australia with the Templars in 1941 and were similarly permitted to settle here. It also provides that moneys proved to be attributable to non-residents of Australia, which will be a very small fraction only of the total moneys received, shall be refunded to the source from which they were obtained.

The United Kingdom Government agreed to transfer these moneys to Australia for disbursement, provided the Australian Government furnished it with an indemnity against any claims arising from the wrongful distribution of these assets. As these moneys could1 be distributed more quickly and expediently in Australia where the majority of claimants are available for consultation, this indemnity was regarded as justified and was given. While, in turn, the Temple Society and its members are quite willing to give a corresponding and covering indemnity to the Australian Government, it is considered more advisable and even necessary that the Australian Government and the Minister concerned should be protected by statute against any actions, proceedings, claims and demands whatsoever arising from the disbursement of these moneys. Legal and other difficulties attendant upon the proving of claims to shareholdings in this fund make it imperative in the interests of Australia that, although every care should be taken to ensure that the fund will be justly administered, neither the Australian Government nor the Minister administering the fund should be subject to liability in connexion with anything done or omitted to be done in relation to the act or to any payment of money in pursuance of the act. This is a perfectly reasonable precaution.

These people will prove to be a distinct asset to Australia. They are accustomed’ to the British way of life. Many are already naturalized British subjects and Australian citizens, and the others will apply for naturalization when their period of probation expires. Not one penny of Commonwealth funds has been expended in bringing them to this country and, under this measure, none of those funds will be expended in administering their assets or in settling them in Australia. It is believed that their high standards of morality and conduct will earn them the respect of our Australian people, and that their farming skill and experience will enable them to contribute to the production of food for this growing nation and for the United Kingdom. This measure is, therefore, commended to the Senate in order that, securely and efficiently, their assets may be received, administered and disbursed, and they may be enabled in consequence to settle successfully in Australia as new Australians, for their own good and in the interests of this great country.

Senator COOPER:
Leader of the Opposition · Queensland

– The Opposition supports this measure, the purpose of which, as the Minister for Shipping and Fuel (Senator Ashley) has said, is to provide authority for the administration and disbursement of approximately £3,500,000 belonging to a group of nonJewish immigrants from Palestine known as the Templars. Although the measure provides merely for the transference of this money from other parts of the world, its real importance is that it will facilitate the entry to this country of splendid immigrants, many of whom are well, versed in agricultural pursuits. I have no doubt that they will be industrious and good citizens. The Minister, in his second-reading speech, gave interesting details of the Temple Society. Last year, I had occasion to ask in this chamber for some particulars about that society and the circumstances in which its members were likely to come to Australia. Therefore, I have a special interest in this measure. Quite a number of the Templars who will immigrate to this country have already acquired British nationality. They are paying their own fares and I am sure will be welcomed by the community as worthy new Australians.

Question resolved in the affirmative.

Bill read a second time, and passed1 through its remaining stages without amendment or debate.

page 2118

DEFENCE (TRANSITIONAL PROVISIONS) BILL 1949

Bill received from the House of Representatives.

Standing and Sessional Orders suspended’.

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

Second Reading

Senator McKENNA:
Minister for Health and Minister for Social Services · TASMANIA · ALP

– I move -

That the bill be now read a second time.

This bill has three main purposes. First, it preserves in force until the 31st December, 1950, certain of the National Security regulations and orders at present in force which I shall indicate a little later. Secondly, it makes certain amendments to some of those regulations which are proposed to be continued in force after 1949. Thirdly it discontinues several regulations and orders as from the 1st January, 1950. If honorable senators examine the regulations and orders which it is proposed to continue in operation, they will see that they cover a variety of matters. I shall briefly review the functions of the most important remaining regulations and orders. The rationing of tea and butter in Australia depends on the continuance of eight regulations - rationing, tea control, food control and evidence regulations together with general regulations 73 and 84 and supplementary regulations 100 and 116. I shall not elaborate precisely how that is achieved. That can be explained, if honorable senators wish, in committee. The issues involved in the maintenance of tea and butter rationing will, I think, be well known. Tea supplies from Indonesia and elsewhere are still insufficient. The restoration of a private market would mean that tea prices would probably rise to approximately twice the present subsidized level, as the government is naturally not prepared to subsidize an unrationed commodity. Allowing the price to rise to such a height would not produce any more tea, and would cause hardship either by preventing many people from buying tea or by causing them to pay a price not comfortably within their means. The rationing of butter enables an appreciable increase of the quantity that we can export to the United Kingdom and, it will be agreed, without any sacrifice of nutritional standards amongst our own people.

Since the end of the war the control of new issues of capital by companies has been considerably relaxed and is not felt by the business community to be at all restrictive of desirable new enterprises. But the war still weighs heavily on the supply of building and construction materials and skilled labour and makes necessary some degree of control of capital development if the most desperately felt community wants are to be met until the transition is fairly completed. At the same time this control affords a necessary check on undesirable inflationary forces arising from wildcat enterprises. The control of interest rates, under the Economic Organization regulations, Part IV., is complementary to this control of capital issues and for that reason continues to be necessary. Money for business can be raised in several ways and simply to refuse permission to raise capital through the normal market channels would not be effective if concerns were able to offer attractive interest rates for deposits by finance companies and other similar institutions.

The regulation of interest rates is desirable for another reason ; advances by the trading banks are controlled and the normal force of competition is thus not able to keep interest rates in check.

The only set of marketing regulations proposed to be kept in operation during 1950 are the Apple and Pear Regulations and, to supplement them for staffing and pay provisions, the Staff of War-time

Authorities Regulations. The acquisition of apples and pears was discontinued in 194S. The regulations were retained for 1949 and will be required in 1950 for two purposes; to enable the Apple and Pear Marketing Board to act as the marketing agent for Tasmanian and Western Australian State marketing authorities, and, secondly, to wind up affairs for previous Commonwealth acquisitions.

A substantial number of retained regulations and orders has always been carried along until it became possible to transfer their provisions, often largely unchanged in effect, from this emergency drafting form into permanent legislative form. This work is being continually proceeded with, but where difficulty or delay is experienced in the introduction of new legislation for this purpose I do not think that any restrictive principle is involved in the continuance of the provisions of these regulations in their present form for the time being. Items falling within this category are Industrial Property, Medical Benefits for Seamen, War Deaths regulations and several General and Supplementary regulations. Amendments to the Defence Act and other defence legislation will account for most of these remaining matters.

As in previous transitional provisions bills a clause has been included so that land tax will continue to be assessed by the Commonwealth on the departmental valuations of 1939. The pressure of work still makes it impracticable for a complete re-assessment to be undertaken at present. The bill also makes some amendments to regulations proposed to be kept in force, through section 6 and the Third Schedule. Actually, though the appearance is that of ordinary amendment to continuing powers honorable senators will find that these might more accurately be regarded as discontinuing provisions. They discontinue subject-matters of quite independent standing and may be considered along with the discontinuing of items affected by sections 5 and 6 and the First and Second Schedules. There is little to be said of the individual regulations and orders which are proposed, to be discontinued by the bill. I draw attention simply to the major changes brought about by the decision of the High Court that the Women’s Employment, Liquid Fuel and, in part, War Service Moratorium regulations were invalid. I draw the attention of honorable senators, however, to two points in this connexion. Clause 8 of the bill provides for the preservation of awards, determinations, &c, in force under the Women’s Employment and Female Minimum Bates regulations until revoked by competent authority. It will be remembered that the wages and salaries of some thousands of female employees were affected by these awards. Secondly, the petrol rationing system administered by the Commonwealth will return substantially unchanged next month, but, of course, under other legislation.

With the passage of this bill the items remaining in force will be seventeen sets of regulations, twelve General and fourteen Supplementary regulations, and three orders, that is, a total of 46 items. I have had prepared a list of the items which have been discontinued since the Defence (Transitional Provisions) legislation first came into operation. Reviewing the situation as it will be affected by this legislation, we shall be left with a small and uncontroversial group of provisions in this transitional form. Only a very few could be classed as controls, and we can in every such case see the winding-up to be not far distant. In short, the unwinding of the war economy has been all but achieved. With the permission of theSenate I shall incorporate in Hansard the two lists of regulations and orders of which I spoke, setting out those proposed to be continued and those discontinued since the beginning of the transitional provisions legislation. They are as follows : -

REGULATIONS AND ORDERS TO BE CONTINUED IN FORCE BEYOND THE 31st DECEMBER, 1949.

Apple and Pear Acquisition.

Beef Shortage.

Capital Issues.

Coal-mining Industry Employment.

Economic Organization Part IV.

Evidence.

Food Control.

Industrial Peace.

Industrial Property.

Maritime Industry.

Medical Benefits for Seamen.

Rationing.

Shipping Co-ordination.

Staff of War-time Authorities.

Tea Control.

War Deaths.

War Service Moratorium.

General 1, 2, 3, 37, 54a, 55aa and 55a, 57, 60b,60c,60d,60e tog,60j to m, 66, 73, 84. Supplementary 1, 33, 52, 58, 62, 63, 80, 94,

100, 116, 129, 133, 139, 142.

Orders.

Cordage and Fibre.

Jute Goods.

Orders under Supplementary 61.

REGULATIONS AND ORDERS REMOVED FROM SCHEDULES OF DEFENCE (TRANSITIONAL PROVISIONS) ACT 1946 SINCE THE 1st JANUARY, 1947.

Agricultural Aids.

Agricultural Production.

Aliens Control.

Australian Barley Boards.

Australian Tobacco Leaf.

Board of Business Administration.

Boot Trades Dilution.

Change of Name.

Claims against Commonwealth in relation to visiting Forces.

Control of Animal Diseases.

Dairy Produce Acquisition.

Disposal of Commonwealth Property.

Egg Industry.

Enemy Property.

External Territories.

Female Minimum Rates.

Guarantee.

Hide and Leather Industries.

Internment Camps.

Jute.

Landlord and Tenant.

Liquid Fuel.

Military Forces.

Minerals.

Munitions.

Naval Charter Rates.

Naval Forces.

Patriotic Funds.

Potatoes.

Prices.

Prisoners of War.

Rabbit Skins.

Requisitioned Cargoes.

Salvage.

Shipbuilding.

Superphosphate Industry.

Tinplate Control.

War Damage to Property.

Wheat Acquisition.

Wheat Industry Stabilization.

Wine Industry.

Women’s Services.

General 11, 25, 26, 31a, 69a, 87, 88, 91. Supplementary 3, 4, 11, 14, 16, 18, 38, 47,

49, 57. 65, 90, 91, 96, 105, 112, 120, 128,

134, 136.

Orders.

Agricultural Machinery.

Control of Essential Materials.

Control of Footwear.

Control of Tinplate.

Shirts, Collar* and Pyjamas.

Control of New Commercial Motor Vehicles.

Control of New Motor Cars. o

I commend the bill to the Senate.

Senator COOPER:
Leader of the Opposition · Queensland

.- The information contained in the lengthy second-reading speech made by the Minister for Health (Senator McKenna) in explanation of this measure, and the recital of the large number of regulations that are proposed to ‘be continued in operation justify his remark that the measure is a most comprehensive one. The matters that will be affected by the passage of the measure are both numerous and varied, and consequently the measure should be closely examined by all members of the Parliament. I need hardly point out that because the measure has just been introduced in the Senate, the Opposition has had no opportunity to go through the long list of regulations that it is proposed to continue in operation, or to give more than passing consideration to the bill. Of course, I realize that for some time past it has been the practice of the Parliament to confront the Senate in the closing hours of the Parliament with a large number of measures that have to be passed with machine-like speed. That is not the proper way to consider legislation, especially important legislation of this kind.

A brief examination of the bill discloses that the Government proposes to extend until the 31st December, 1950, the operation of certain war-time controls which draw their constitutional authority from the defence power conferred on the Government by the Constitution. Before the referendum was taken on the control of rents and prices eighteen months ago, members of the Opposition suggested to the Government that the power to control rents and prices should oe continued simply by extending the operation of the defence power. The Government did not, of course, accept the Opposition’s advice, but I point out now that the present measure proposes to continue the operation of certain controls by extending the defence power. I also point out that although the war ended more than four years ago the

£69.1

Government is still relying on the defence power as the legal basis for many of its legislative and administrative controls. Some of the regulations to be continued by this bill could possibly be challenged in courts because of the scope of the defence power. If the controls that we are debating can be carried on four years after the cessation of hostilities, surely the control over rents and prices could have been exercised at least until now. The women’s employment legislation is based on the defence transitional provisions. I have had but a brief opportunity to study these provisions. I ask the Minister whether it is not possible to see that these powers are incorporated in permanent legislation. The provisions relating to women’s employment should not be embodied only in war-time measures They should be incorporated in legislation of a permanent nature. The Opposition does not desire to impede the passage of this bill. It suggests, however, that the Government should prepare for the time when its powers in relation to the matters contained in the bill will expire. Some steps should be taken now to incorporate the important provisions in permanent legislation.

Senator O’SULLIVAN:
Queensland

– I do not oppose this measure. The Opposition has consistently supported the exercise by the Commonwealth of such controls as do not fall within the province of the States. In the unwinding of war-time conditions they should be exercised by the Commonwealth. I hope the time will come when the complete powers will be handed back to the States. As honorable senators are aware the United States of America is the most highly developed and efficient country in the world, as a result of its domestic policy of decentralization. A minimum amount of power, except in relation to defence and external affairs, is exercised by the federal government whilst the maximum power is exercised by the State governments and municipalities. That country is so keen on decentralization that matters such as the police and education are controlled, not by the States, but by the towns themselves. The lesson to be learned is that the outlying parts of our country can be developed to maximum efficiency only by giving maximum autonomy to local authorities. It is not disputed that control in relation to matters of international flavour involving the armed services should be exercised by the Commonwealth. But wherever the States themselves can better exercise those powers, the sooner authority is restored to them the better it will be for us all.

Senator McKENNA:
Minister for Health and Minister for Social Services · Tasmania · ALP

in reply - The Leader of the Opposition (Senator Cooper) referred to his lack of opportunity to consider this measure. I point out to the honorable senator that in recent years a bill of this kind has been a hardy annual. From time to time this matter comes before the Senate in connexion with the winding-up of the war effort. The Government has not the slightest intention to gag the debate, and is perfectly agreeable that the Opposition should continue to debate the measure as long as it considers that to be necessary. The second matter raised by Senator Cooper related to the women’s employment regulations and controls. Unfortunately they have been declared invalid by the High Court of Australia. The honorable senator has suggested that something might be done to incorporate those provisions in permanent legislation. That is completely impossible. The Government is taking whatever legal risk flows from invoking the defence power for the purpose of ensuring the carrying on of all existing awards. Until the act and regulations are revoked by some competent authority, whether by a State authority in the industrial sphere, or by the machinery established by the Commonwealth Conciliation and Arbitration Act 1949, it is completely impossible for the Parliament, with the limitations that are upon it in the industrial sphere, to enact any permanent legislation of that kind. Even in seeking to preserve those awards this legislation is running some risk and is relying upon an extension of the defence power. The Senate will recall that time and again the High Court has said that it will look at each of these controls in the light of all the circumstances and that the Commonwealth has power to move into almost any field in time of war, because everything in the economy of the country has some direct relationship to defence at such a time. The High Court has said, also, that that power did not expire with the cessation of hostilities, but extends to the unwinding of the war in order to restore the economy to a peacetime basis. The High Court is not prepared to affirm that position as a general blanket proposition. It looks at each of the controls and applies the test, as a broad general principle. Is there a direct relation to defence? If the High Court cannot detect some close, immediate, and direct relation to the defence power, it will, as it has done on many occasions in the recent past, declare those regulations to be invalid. I point out that although the Opposition generally acknowledges a continuance of the need for some of the controls in the national interest, time was, not very long ago, when honorable senators opposite opposed very strenuously the immediate relinquishing of controls by the Commonwealth following the rejection by the people of the rents and prices referendum. The Government’s view on that occasion was that the people had given the clearest indication that they wanted all controls exercised at the federal level to be wound up as quickly as possible. There has since been a continuous course of conduct by the Government designed to discard emergency war-time controls as rapidly as possible. I assure the Senate that, day by day as we can discard these controls, we shall do so very gladly. We have continued them solely from a sense of responsibility to the people and to the economy of the nation. No better instance could be cited than the fact that the Government, having lost all power to exercise control over petrol, has handed that control to the States in the national interest. Despite any controversy that may rage between the political parties over the petrol situation, one fact emerges very clearly. It is that all of tho State Premiers, though perhaps not all of the State parliaments, recognize the need for control over the distribution of petrol in the national interest. The Government is maintaining the few remaining controls, such as those which apply to capital issues, interest rates, butter and tea, entirely from a sense of responsibility and duty to the nation and, in certain instances, of obligation to the

United Kingdom, and has no desire to continue them for one day longer than is strictly necessary.

I was interested to hear what Senator O’sullivan had to say about the process of decentralization that takes place in the United States of America. I am in complete accord with the views that he expressed. I know that the powers of the federal legislature in the United States are strictly limited on paper, but in that country, ‘by reason of the higher revenues that are available to the federal body, a really practical form of control is exercised by it in fields where it has no legislative power. I am thinking in particular of the activities of the United States federal authorities in the. field of health. Despite the lack of any specific power under that head, they have established division after division to deal with the various aspects of health and have attracted to their service the very best specialists in America. All of those divisions are at such a high level that their advice is sought very readily by all of the States that form the federation. Thus, although the federal legislature in the United States of America lacks specific power in relation to health, it nevertheless lays down policy and provides funds to enable the various States to implement that policy. Pursuing the interesting theme that was raised by Senator O’Sullivan, I point out that a rather similar course is being followed by the Australian Government in the same field. That fact is noticeable in the case of tuherculosis. The Government has obtained the services of the best specialists that can be found in Australia for the campaign against tuberculosis. lt has secured a director who commands the respect of the whole medical profession and is unquestionably a leader in that field. He has helped the Commonwealth to evolve a policy that has been accepted by all of the States. The States have been left to carry out that policy, but the Commonwealth provides the necessary funds. For reasons that I have previously stated in this chamber, it is likely that that pattern of activity will be continued by the Department of Health for many years. I agree with the honorable senator that decentralization of individual effort is highly desirable.

However, the honorable senator will concede that, in a country such as Australia, where the people are of the one kind but where there is a diversity of problems arising from geographical and climatic conditions, there is need for an overall plan to co-ordinate effort. In fact, the boundaries of our States are only on paper. The people of Australia move very freely about the Commonwealth and, in these matters, there is need for some overall control in the broad national interest. Of course, the detailed work is best left to those who have the necessary experience, staffs and facilities. The principle enunciated by Senator O’Sullivan, which has been followed so successfully in the United States of America and is being followed in Australia now, has my personal approval.

Question resolved in the affirmative.

Bill read a second time.

In committee:

The bill.

Senator McKENNA:
TasmaniaMinister for Health and Minister for Social Services · ALP

– I move -

That, after clause 8, the following new clause be inserted: - “8a. - (1.) A person to whom this section applies shall not, directly or indirectly, communicate or divulge any information to which this section applies.

Penalty: One hundred pounds or imprisonment for six months. “ (2.) Nothing in the last preceding subsection prohibits -

a person, whenever the Minister declares that it is necessary or desirable in the interests of justice so to do -

from communicating to the Attorney-General of a State information which makes it appear that a person has committed, or is suspected of having committed, or is about to commit, an offence against a law of that State relating to secret commissions; or

from producing to the AttorneyGeneral of a State, for use in connexion with a prosecution of a person for any such offence, any documents, books or papers containing any such information ;

the communication to the Commissioner of Taxation or a Deputy Commissioner of Taxation of information for the purpose of the administration of any law of the Commonwealth relating to taxation; or

the communication to the Tariff Board constituted under the Tariff Board Act 1021-1947 of information relating to a matter in respect of which an inquiry is being held by the Tariff Board. “ (3.) Where the Minister declares that he is satisfied that a law of a State or Territory of the Commonwealth makes adequate provision for the preservation of the secrecy of information communicated to an authority or officer exercising powers and functions in relation to the control of prices and rates of goods or services in that State or Territory, nothing in this section prohibits a person thereto authorized by the Minister from communicating information to such an authority or officer. “ (4.) A person to whom this section applies shall, if so required by the Minister or try an officer appointed by him to act under this sub-section, sign a declaration, in accordance with a form approved by the Minister, that he will not unlawfully communicate any information to which this section applies. “ (5.) In this section - information to which this section applies ‘ means information obtained by the Commonwealth for the purposes of the Prices Regulations; person to whom this section applies ‘ means any person who at any time exercised any power or performed any duty under or in relation to the Prices Regulations, and includes any person who is, or has at any time been, employed by the Commonwealth and possesses any information to which this section applies; the Minister ‘ means the Minister of State for Trade and Customs; the Prices Regulations ‘ means any Regulations having the title National Security (Prices) Regulations in force at any time under the National Security Act 1939 or under the Defence (Transitional Provisions) Act 1946, or under cither of those Acts as amended.”.

The bill provides that from the 1st January, 1950, the National Security (Prices) Regulations will be discontinued. One effect of this action will be that persons formerly employed by the Prices Branch, each of whom made declarations of secrecy under the National Security (Prices) Regulations, may be free after the 1st January, 1950, to disclose information obtained in the course of their duties. “When prices control was taken over by the States, the secrecy provisions of the National Security (Prices) Regulations were amended to give the State prices control authorities access to files in the custody of the Commonwealth. This was necessary in order to prevent duplication and to permit of an easy transition.

The State officers who examine such files are sworn to secrecy in the same way as were Commonwealth officers under Commonwealth prices control. There is no guarantee, however, that existing State legislation will be continued indefinitely ; hence the need for a standing Commonwealth provision to guarantee that secrecy will be observed by officers who have had access to confidential documents held by the Commonwealth Prices Branch or lent to State prices organizations. The provisions embodied in the amendment have been designed to cover persons, including new employees, who have, or have had, or will have access to the records in question and, at the same time, be sufficiently wide in scope to embrace the Commonwealth archival authorities who it is expected will become custodians of a selected portion of the records. Briefly, the amendment is designed to ensure that there shall be preserved in permanent form a complete obligation of secrecy upon all persons, whether Commonwealth or State officers or other persons being the custodians’ of records. That obligation must be observed at all times and under all conditions except those exempt by law.

New clause agreed to.

Bill, as amended, agreed to.

Bill reported with an amendment; report adopted.

Bill read a third time.

page 2124

DEFENCE BILL 1949

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 SouthWalesMinister for Shipping and Fuel · ALP

– I move -

That the bill be now read a second time.

As honorable senators are aware, it was necessary during the war to supplement defence legislation with a large body of National Security Regulations. The greater part of these have already been allowed to lapse, or are now no longer required. A few, however, relate to matters of a continuing nature, and have an importantbearing on the present and future administration of the services. The main purpose of this bill is to give legislative effect to the substance of such of the remaining National Security Regulations, administered by the defence and service departments, that it is considered essential to continue in permanent form in the Defence Act. The bill is thus an important part of the action necessary to be taken to bring to an end war-time legislation continued in the form of the Defence (Transitional Provisions) Act. Certain other proposed amendments of an urgent nature, outside the scope of the National Security Regulations, have also been included in the bill.

Some provisions of the bill concern the three services whilst others concern the administration of the Department of the Army only. Abill to amend the Naval Defence Act to give permanent legislative effect to the substance of certain National Security Regulations which relate only to the administration of the Department of the Navy, will be brought down by the Minister for the Navy (Mr. Riordan). The following National Security Regulations are now administered by the defence and service departments: - National Security (Internment Camp) Regulations, National Security (Military Forces) Regulations, National Security (Naval Charter Rates) Regulations, National Security (Naval Forces) Regulations, National Security (Prisoners of War) Regulations, National Security (Women’s Services) Regulations, and certain regulations of the National Security (General) Regulations and National Security (Supplementary) Regulations. This bill and the bill to amend the Naval Defence Act to be brought down by the Minister for the Navy incorporate the substance of such of these regulations as are still required, or provide for the making of similar regulations under the Defence Act or Naval Defence Act.

As from the 1st January, 1950, therefore, the abovementioned regulations will cease to operate under the Defence (Transitional Provisions) Act, except a few provisions of the National Security (General) and (Supplementary) Regulations administered by the defence and service departments which it is considered necessary to continue. The latter will be repealed as soon as possible after that date, and replaced by appropriate regulations to be made under the Defence Act as now proposed to be amended. This bill and the Naval Defence Bill deal with such National Security Regulations as are the sole concern of the defence and service departments.

There are other regulations, however, such as the provisions of the National Security (General) Regulations relating to the handling and conveyance of explosives, and the provisions of the National Security (Supplementary) Regulations relating to the administration of the affairs of persons missing as the result of war operations, in which these departments are interested, but which are administered by other departments. Consideration is being given by the responsible departments to the appropriate action to be taken in regard to these.

Among matters now cover ed by National Security Regulations and for which this bill makes permanent provision are the adjustment of ranks of members of the military forces after war service and the unauthorized use, possession, or supply ‘ of uniforms and emblems by strengthening the provisions of section 83 of the Defence Act. In addition, it is proposed to amend section 124 of the Defence Act to enable regulations to be made under that act dealing with the following matters now covered by National Security Regulations: -

The suspension, variation or cancellation of allotments of pay of members of the military forces.

The extension of existing powers in the Defence Act to regulate and control buildings, &c, in defence areas.

Certification of death and the postmortem examination and disposal of the bodies of members of the defence forces who die while on service.

Prisoners of war.

Command and discipline of bodies of the Naval, Miliaary or Air Force or any two of those forces acting together.

Provision relating to the administration of oaths and the execution of powers of attorney by members of the defence forces.

Apart from the provisions of the bill arising out of National Security Regulations, the most important amendment proposed is that relating to the composition of the Permanent Military Forces. In his statement to the Parliament on the 4th June, 1947, on the Government’s post-war defence policy, the Minister for Defence (Mr. Dedman) said that the Army programme provided for the raising of permanent forces, including a field force, certain fixed establishments, and cadres for instructional, administrative and other duties. These forces, known as the Australian Regular Army, have been raised under war-time powers in the Defence Act which will cease as soon as a proclamation is issued terminating the “ time of war “. Section 31 of the act provides that, except in time of war, no permanent military forces shall be raised or organized except for administrative and instructional staffs, including certain specified corps. It is therefore proposed to repeal the existing section and to replace it with a section giving the necessary statutory authority for the Australian Regular Army.

Other provisions to which I invite the attention of honorable senators are clause 14, which gives statutory recognition to the Australian Cadet Corps, and clause 19, which regulates the appointment of officers to the Australian Regular Army. With the creation for the first time of an Australian Regular Army, it is considered that the restrictions imposed by the existing section 148 of the act are too rigid, and the bill therefore provides such relaxation thereof as is considered necessary. It is intended that the amending act shall commence on the 1st January, 1950, that being the date up to which the continuance of National Security Regulations is authorized by the Defence (Transitional Provisions) Act 1948. Provisionis made in clause 20 of the bill for the continuance in force, under the Defence Act, of the

National Security Regulations specified in that clause. These will be amended or repealed as soon as it is practicable to prepare and gazette new regulations under the Defence Act as now proposed to be amended. I commend the bill to honorable senators.

Senator COOPER:
Leader of the Opposition · Queensland

.- As the Minister for Shipping and Fuel (Senator Ashley) has explained, this measure relates to a wide variety of defence matters. One purpose of the bill is to give legislative effect to such of the remaining National Security Regulations administered by defence and service departments as are considered essential. Those regulations, I understand have been carried on under defence transitional powers legislation. They are now to be incorporated in the Defence Act. The bill also makes permanent provision for the adjustment of ranks of members of the forces after war service, and provides measures for dealing with the unauthorized use, possession or supply of uniforms and emblems. That latter provision is important. In the past, men have been able to masquerade as officers of high rank in the defence forces and to wear decorations to which they were not entitled. To my mind, the most important amendment proposed by this measure is that relating to the composition of our permanent military forces. The general public of this country is vitally concerned in this matter at present. Ever since the cessation of hostilities at the end of World War II. - I do not suggest that there has been a complete cessation of hostilities throughout the world - international affairs have been most disturbing. We read daily in the press reports of alarming occurrences in the other parts of the world, and we realize the need for the presence in this country of well-trained, well-equipped and efficient military forces, established virtually on a war-time footing. I doubt very much the adequacy of our present defence forces. On several occasions I have raised this matter in the Senate in an endeavour to obtain some intelligible information, particularly about the strength of our permanent army and recruitment to the militia forces, but so far, I have been unsuccessful. I dealt with the subject again last night, but, unfortunately, my remarks were ruled out of order. The Government should heed the growing fear amongst the people of Australia that everything is not as it should be in our defence forces. The people want to know the true strength, and not merely the paper establishment of those forces, and what is being done by the Government to ensure that those forces, particularly the army, shall be in a position to take the field if necessary at a moment’s notice. I mean literally a moment’s notice because we shall never again have days or even weeks of warning as we have had in the past. The nation that strikes first will have the advantage.

Senator ASHLEY:
Minister for Shipping and Fuel · New SouthWales · ALP

in reply - On every possible occasion’, the Leader of the Opposition (Senator Cooper) questions the efficiency of Australia’s defence forces. He introduces this subject by innuendo or in some other subtle way. Perhaps the response to the call for recruits for our Citizen Forces has not been as good as it was in pre-war days, but I remind the Senate that to-day we are living in an era of prosperity and that many avenues of employment are open to the young men of this country. If there was a pool of unemployed, as there was in pre-war days when anti-Labour governments held office, there would be no dearth of recruits. Thousands of young Australians up to the time of their enlistment in the forces at the outbreak of World War II. had never had a job. The Government has no authority under the Defence Act to raise permanent forces in time of peace other than for administrative and instructional purposes including certain specified corps. However, the . raising of field forces comprising infantry and other arms of the service, is an important part of the Government’s declared defence policy, and statutory authority is required to enable the Government to give effect to that policy. At present permanent forces are being recruited under war-time powers, which will cease as soon as a state of peace is formally proclaimed. The purpose of this amending measure is to enable the Government to implement its policy. I admit quite freely that the Leader of the Opposition was correct when he said that young men are not responding to the recruiting campaign in the numbers that we would like, but, as I have already pointed out, young men do not enlist in the armed forces when conditions are prosperous and more remunerative and congenial work is offering in ordinary civil life. Furthermore, I remind the Leader of the Opposition that when the recent war occurred many thousands of the young men who volunteered for service had to be rejected for physical unfitness which was due to malnutrition during the depression years, when the anti-Labour forces controlled this country.

Question resolved in the affirmative.

Bill read a second time.

In committee:

The bill.

SenatorO’SULLIVAN (Queensland) [12.26]. - It is difficult to make a satisfactory contribution to the discussion of such an unsatisfactory measure. However, I would appreciate some enlightenment of certain of its provisions. For instance, it is proposed to repeal section 31 of the principal act and to insert the following new section in lieu thereof - (2.) The Active Permanent Military Forces shall consist of officers appointed to, and of soldiers who are bound to continuous military service during the continuance of their engagement in -

  1. the Australian Regular Army; or
  2. a military force raised in time of war for service during time of war only or for a specified period.

That seems to be a contradiction in terms. How can we have a” permanent “ army if those who enlist in that army include some who enlist only for temporary service during war-time?

Senator ASHLEY:
New South WalesMinister forShipping and Fuel · ALP

– I think that Senator O’Sullivan has failed to distinguish between the permanent nature of the Australian Regular Army and the duration of the service of some of its members.

Senator O’SULLIVAN:
Queensland

– The proposed new sub-section clearly states that the “ active permanent military forces “ shall includemembers of the Australian Regular Army or any military force raised in time of war for service during time of war only. Obviously a body raised for service only during war-time does not possess a permanent character, and I cannot understand how the “ permanent “ military forces can include formations and personnel who are enlisted only for temporary service.

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

– The military establishment comprises certain permanent forces and the Australian Regular Army which consists of soldiers engaged for continuous service for a specified period, or a military force such as an expeditionary force raised in time of war for war service.

Senator O’SULLIVAN:
Queensland

– I am afraid that the Minister’s explanation has not elucidated the matter that I have mentioned. However, I pass now to another point on which I should appreciate some information from the Minister for Shipping and Fuel (Senator Ashley). The bill proposes to repeal section 148 of the principal act and to insert a new section in lieu thereof. I am particularly concerned with subsection (1.) of the proposed new section, which is as follows : -

Subject to this section, a person who is not a graduate of the Military College as prescribed shall not be appointed an officer in the Australian Regular Army.

What does the term “ Australian Regular Army “ connote for the purposes of the principal statute? Will the Minister explain why it is proposed to restrict appointment to commissioned rank to those who have graduated through the Royal Military College?

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

.- The “Australian Regular Army” means the permanent army. I am informed that the effect of the proposed new sub-section will be that as a general rule only those who have graduated through the Royal Military College can become officers of the Australian Regular Army.

Senator O’SULLIVAN:
Queensland

– That provision seems to impose a serious limitation on the choice of officers of the Australian Regular Army. If it is proposed to restrict the choice to those who have graduated through the Royal Military College, very severe limitations will be placed on the careers of competent and ambitious members serving in the ranks.

Senator CRITCHLEY:
South Australia

– For once I -find myself in agreement with Senator O’sullivan. I should like the Minister for Shipping and Fuel (Senator Ashley) to explain exactly why it is proposed to restrict the choice of officers to those who have graduated through the Royal Military College. Because of my service in the Australian Imperial Forces during World War I. I am particularly concerned that able members serving in the ranks should be prevented from attaining to commissioned rank. .It is well known that during World War I. and World War II. many thousands of our ablest officers had graduated through the ranks, despite the handicap, in many instances, of lack of opportunity in youth because of adverse economic circumstances. The Minister, who himself had active service in an expeditionary force, will understand why I am concerned that commissions in the Australian Regular Army should be restricted to graduates of the Military College.

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

– Section 148 of the principal act was intended to ensure that officers of the Permanent Military Forces should possess proper qualifications to hold a commission, and that was why the section provided that officers should be graduates of the Royal Military College. However, an exception was made in the case of quartermasters, who may be promoted from warrant to commissioned rank. In addition, provision’ existed for the promotion to commissioned rank of members of the medical, veterinary, ordinance and clerical branches of the services. Proposed new section 31 (2.) will make more flexible the conditions of appointment to commissioned rank of members of the Australian Regular Army who are not graduates of the Royal Military College. That has become necessary as a result of the establishment of the Australian Regular Army and because of the increasing numbers and categories of officers requiring the possession of technical qualifications. In giving effect to this provision, the appointment to the Australian Regular Army of officers who are not graduates of the Royal Military College, will be restricted to the technical arms of the service, and to categories definitely not covered by the Royal Military College courses. However, there will be no change in the present policy of appointing quartermasters who are not graduates of the Royal Military College. The last proviso of existing section 148 specifically covers graduates of the Royal Military College who are officers of an expeditionary force, which would be part of the Permanent Military Force.

Senator O’SULLIVAN:
Queensland

– I draw the Minister’s attention to the fact that in proposed new section 31 there are mentioned both the “ Active Permanent Military Forces “ and the “Australian Regular Army”. It is not clear whether those terms are intended to be synonymous. I shall be quite happy about the proposed new section if the Minister assures me that appointments to commissioned rank shall not be limited to graduates of the Royal Military College.

Senator ASHLEY:
New SouthWalesMinister for Shipping and Fuel · ALP

– Proposed new section 31 (2.) reads -

The Active Permanent Military Forces shall consist of officers appointed to, and of soldiers who are boundto continuous military service during the continuance of their engagement in -

the Australian Regular Army; or

a military force raised in time of war for service during time of war only or for a specified period.

That provides an answer to the honorable senator’s inquiry.

Senator O’SULLIVAN:
Queensland

– Is the Minister prepared to give an assurance that the policy contemplated will not in any way restrict the field from which prospective officers may be chosen?

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

– I am not in a position to give that assurance at the moment. However, I shall check up on the scope of the provision and inform the honorable senator of the position this afternoon.

Senator SHEEHAN:
Victoria

– Because of the contentious nature of the clause I should like the Minister to explain what would be the position with relation to the militia forces in the even of war. During World War II. when large numbers of troops were being raised, it was found impracticable to restrict the appointment of officers to graduates of the Royal Military College In many instances difficulties were placed inthe way of young militia officers being, granted commissions in the Second Australian Imperial Force.

Senator Critchley:

– In Australiaor overseas ?

Senator SHEEHAN:

– That happened overseas. However, as the Army extended, necessity broke down the restrictions that were imposed in the early stages of the war. There arose a kind of class distinction. We created an officer class in this country. I point out, however, that some of our generals who were not graduates of the Royal Military College rose to that rank because of their outstanding ability. I should not like to see a Labour government promote further class distinction in the military forces of this country. Everybody with the requisite ability should have the opportunity to rise to commissioned rank. Unfortunately we have not had much time to examine this matter very closely.

Sitting suspended from 1242 to 2.15 p.m.

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

Senator O’Sullivan has asked for an explanation of the difference between the Permanent Military Forces and the Australian Regular Army. Thehonorable senator can read the full definitions 11. clause 8, but, briefly, theAustralian Regular Army consists of officers appointed, namely, Duntroon graduates, and soldiers who are bound to continuous military service for the period of their engagement. The period of engagement of soldiers is six years with an option of re-engagement. In addition, a military force raised in time of war for service during time of war only or for a specified period would, combined with, the Australian Regular Army, constitute the Active Permanent Military Forces. The honorable senator also asked whether there was any limit upon the eligibility of soldiers for commissions in the Permanent Military Forces and the Australian Regular Army. The answer is that, as a general rule, commissions in the Australian Regular Army are restricted to Duntroon graduates, as provided in clause 19. However, there is provision for the appointment of non-graduates to such non-combatant branches of the Australian Regular Army as the medical, veterinary, ordnance, service and clerical corps. This has become necessary as a result of the creation of the Australian Regular Army and* the increasing numbers of categories of officers for whose duties technical or professional qualifications are necessary. The Army policy in giving effect to this amendment will be that the appointment of officers who are not graduates of the Royal Military College in positions in the Australian Regular Army shall be restricted to the technical arms of the services.

Senator O’SULLIVAN:
Queensland

– I thank the Minister for the trouble that he has taken to obtain the information for me. The point that I wish to make clear is that it will still be possible for any private to feel that there is a field-marshal’s baton in his haversack. I appreciate that a private without qualifications could not be granted a commission in a technical branch of the services.

Senator COOPER:
Leader of the Opposition · Queensland

– Clause 11, which deals with the discharge of members of the Citizen Forces, states -

Section forty of the Principal Act is repealed and the following section inserted in its stead : - “ 40. A voluntarily enlisted soldier of the Active Citizen Military Forces may, exce.pt in time of war, claim his discharge before the expiration of the period of service, for which he engaged, .provided he has given not less than three months’ notice in writing to his commanding officer of his intention to claim his discharge, and the claim shall with all reasonable speed be allowed.”.

I refer to the provision that claims for discharge “ shall with all reasonable speed be allowed”. Does that mean that any enlisted soldier may apply for and obtain a discharge if, for instance, he becomes fed up with the service after training for only a few months? Must his discharge be granted to him with reasonable speed irrespective of the period of his service?

Senator ASHLEY (New South WalesMinister for Shipping and Fuel [2.20]. - The amendment of the principal act proposed in clause 11 is consequential upon the amendment that will be effected by clause 8, which will repeal section 31 of the act. Sub-section (3.) of section 31 is referred to in section 40. Section 31 refers to “ forces maintained after the cessation of the time of war if the Governor-General issues a proclamation that their maintenance is necessary in the public interest by reason of the recent existence of a time of war “. Paragraph (b) of that sub-section will be omitted from the new section 40, as that condition has never been enforced and is now considered to be unnecessary.

Senator COOPER:

– Under the existing section, the granting of discharges is at the discretion of the Army organization.

Senator ASHLEY:

– That is so.

Bill agreed to.

Bill reported without amendment; report adopted.

Bill read a third time.

page 2130

NAVAL DEFENCE BILL 1949

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator McKENNA:
Minister for Health and Minister for Social Services · Tasmania · ALP

– I move -

That the bill be now read a second time.

This bill, which amends the Naval Defence Act 1910-1948, was referred to by the Minister for Defence (Mr. Dedman) when introducing the bill to amend the Defence Act 1903-1948, and like most of the provisions of the latter bill, its purpose is to obviate the necessity for a further extension of certain sections of the Defence (Transitional Provisions) Act 1948. As a consequence, the National Security (Naval Forces) Regulations and the National Security (Naval Charter Rates) Regulations, which will cease to be effective after the end of 1949, will not be further extended. It is desired to make the necessary provision to enable the services of certain senior commissioned officers and commissioned officers who received their appointments by virtue of the Security (Naval Forces) Regulations to be continued. Normally, these officers would not be eligible for employment being over the prescribed age or lacking some other qualification. However, owing to the acute shortage of officers in the Royal Australian Navy, it is essential that the services of the temporary officers be retained whilst new appointees are entered and trained. The efficiency of the Navy would be seriously affected should it become necessary to dispense with the services of these temporary officers before it became possible to replace them. I should point out that they are all volunteers for further service and that none is being retained against his will.

Under the approved naval programme, many more permanent officers will be required than in pre-war days. Every effort to obtain those officers is being explored, but it is not expected that the existing shortage will be overtaken for a number of years. The bill also gives power to the Governor-General to make regulations for the fixing of charter rates and establishment charges in respect of ships requisitioned for naval purposes. This will allow the making of regulations under the Naval Defence Act to replace the National Security (Naval Charter Rates) Regulations. Whilst most vessels requisitioned during the war have since been returned to their owners or otherwise disposed of, some are still under charter, and it is necessary to continue’ the Charter Rates Board. The board is the authority for fixing charter rates and establishment charges in respect of requisitioned vessels. Owing to changing conditions, charter rates are altered from time to time, and it is therefore necessary for the Charter Rates Board to be in a position to function while vessels are still under requisition. It is unlikely that the last of the vessels will be de-requisitioned before the end of 1950 at the earliest.

Senator COOPER:
Leader of the Opposition · Queensland

– This measure is similar to the Defence Bill which the Senate has just passed. Its object is to obviate any further extension of certain sections of the Defence (Transitional Provisions) Act. The Opposition does not oppose the measure.

Senator TANGNEY:
Western Australia

-I should like the Minister for Health (Senator McKenna) to explain whether the bill provides for the continued employment, not only of those who received their appointments under the National Security Regulations, but also of officers who have had over 30 years’ service in the Navy, but did not receive promotion during the depression years when the defence programme was reduced and have now reached the retiring age for their appropriate rank. Some of the men in the latter class have been acting in a higher rank and by virtue of that fact should have been retired, in some instances, two years ago. Does this measure make provision to enable them to be continued in their employment ?

Senator McKENNA:
Minister for Health and Minister for Social Services · Tasmania · ALP

in reply - I appreciate the support that the Opposition has given to this measure. I point out to Senator Tangney that the bill deals merely with persons who hold temporary appointments by virtue of the National Security Regulations alone. It has no application to permanent officers. There may be many men in the category to which the honorable senator has referred who lacked the opportunity to obtain promotion in the depression years and are now over age and are being continued in their employment on a temporary basis. I do not think that this legislation refers to them. The honorable senator will realize that the bill deals merely with a passing phase. It is incorporating in permanent form what was purely emergency legislation to enable certain persons to be employed. The repeal of the relevant National

Security Regulations means that there would be no power to continue those commissioned officers in their employment if it were not for the fact that some specific authority was provided in the act.

Question resolved in the affirmative.

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

page 2132

LOAN (HOUSING) BILL 1949

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator ARMSTRONG:
Minister for Supply and Development · New South Wales · ALP

– I move -

That the bill be now read a second time.

This bill seeks parliamentary authority for further advances to the States of capital funds totalling £17,000,000 in accordance with the provisions of the Commonwealth and State Housing Agreement Act 1945. The following statement reveals the continued increase in advances made to the States by the Commonwealth since the inception of the agreement -

During the same period, parliamentary appropriations amounting to £25,000,000 have been approved leaving a balance of £6,393,000 available at the 30th June, 1949, to enable the building programme to continue uninterrupted in the early months of this financial year. A £17,000,000 programme for expenditure under the above agreement was recommended to the Loan Council by the CoordinatorGeneral of Works and was endorsed by the Loan Council at its meeting last month as part of the works programme for 1949-50. For purposes of determining the borrowing programme for 1949-50, however, the Loan Council decided to make an overall cut of 23 per cent, in the works programme and to review the position again in January 1950, in the light of the progress made by that time in the implementation of the works programme. The borrowing programme for 1949-50 approved by the Loan Council for housing purposes under this agreement is therefore limited to £13,100,000. It will be appreciated, therefore, that Loan Council approval will be required if it proves necessary to extend the borrowings for this purpose beyond £13,100,000. I should add that Parliament is being asked to authorize the appropriation of the full amount of £17,000,000 at this stage in order to ensure that any action which may subsequently be required, having regard to the Loan Council decision in relation to borrowings for these housing advances to the States, may not he delayed by the lack of adequate appropriation by the Commonwealth Parliament.

To the end of June, 1949, 32,609 dwellings were commenced under the agreement in the five States operating under it. Of these, 23,014 had been completed, and 9,595 were under construction at the 30th June, 1949! Completions during the year ended the 30th June, 1949, were 7,743, an increase of over 21 per cent, on the completions for the previous year. Of these, 2,363, representing 30 per cent., were in country areas. The agreement ia primarily designed to bring homes of good standard within the reach of persons of small means. This purpose is achieved by the provision of rental rebates, under which families whose incomes equal the basic wage do not have to pay more than one-fifth of their income in rent whatever the economic rent of the dwelling they occupy. As the family income rises above the basic wage, or falls below it, the amount of rebate decreases or increases. The total amount of rental rebates granted up to the 30th June, 1949, was £132,211. The agreement makes provision for a tenant, if he wishes, to purchase the home that he occupies. The States are of course principals under the agreement and they determine the basis of sale. Commonwealth approval is necessary only if a State desires to sell a house at below capital cost. An important feature of the agreement in the present circumstances of acute housing shortage is that all dwellings must be allotted in accordance with the relative needs of applicants, and at least 50 per cent, must go to ex-servicemen. In practice, the proportion allotted by the States to ex-servicemen and their dependants has averaged 65 per cent.

Senator COOPER:
Leader of the Opposition · Queensland

.- This bill seeks parliamentary authority for further advances to the States of capital funds totalling £17,000,000 in accordance with the provision of the Commonwealth and State Housing Agreement Act of 1945. All honorable senators will agree that the housing of the people of Australia is one of the most vital problems confronting us to-day. Whilst I appreciate the difficulties associated with a large legislative programme, I regret that a measure of such importance to the country as this, has been introduced into this chamber in the dying hours of the Parliament. Most honorable senators, J am sure, would have been only too glad to participate in a debate on housing generally. The Minister has stressed the urgency of this measure, and the Opposition does not wish to delay its passage. In view of tho existing acute shortage of dwellings, all available funds must be provided as quickly as possible. The provision for the allocation of homes in accordance with the relative needs of applicants is wise, and it is pleasing to note that at least 50 per cent, of all houses completed under the scheme have to he allotted to ex-servicemen

Senator Armstrong:

– In actual practice, 65 per cent, of the houses go to ex-servicemen.

Senator COOPER:

– I am glad of that. I was rather perturbed yesterday about the war service homes programme, but I realize now that ex-servicemen have an opportunity to secure homes either through the war service homes scheme, or under the Commonwealth and State Housing Agreement.

A few days ago, I asked a question about the advances that had been made to each State under the agreement. The figures that were given in reply were rather disturbing to me because they show that Queensland’s share has been con siderably less than that of most other States. There may be a valid reason for that. Queensland may not be participating fully in the scheme. The reply to my question showed that the following total advances had been made to the States during the five periods, 1945-46, 1946-47, 1947-48, 1948-49 and the first three months of 1949-50: -

Advances to Queensland have been only about half those made to Western Australia, and approximately one-eighth of those made to New South Wales. I should like some explanation of that matter.

Senator RANKIN:
Queensland

– I again emphasize the tremendous concern that we all feel over the housing situation in this country. I am informed that in Queensland alone, 1,700 people are awaiting the provision of mere temporary accommodation. That is an alarming figure. I draw the attention of the Minister for Supply and Development (‘Senator Armstrong) also to the need for housing for aged people. I urge that, under the Commonwealth and State Housing Agreement, and other governmental housing schemes for rental, a definite percentage of homes should be reserved for aged couples. One of the greatest tragedies of Australian life is that frequently two elderly people who have lived together for many years, have to be separated in the twilight of their lives and sent to different institutions. I urge that consideration be given to providing some kind of cottage housing for aged couples. As an instance of what can be achieved, I direct the attention of the Minister to the successful settlement for aged1 couples that has been established at Chermside, Queensland, under the auspices of the Methodist Church. Some provision should be made for’ similar accommodation to be provided for aged1 couples in both rural and metropolitan areas throughout Australia. It is very sad to reflect that many aged couples who are unable, because of indigent circumstances or poor health, to continue to maintain their homes and have to seek assistance, are separated and spend their declining years apart. Adequate accommodation for aged couples could be provided if the Government decided to set aside a fixed percentage of new houses for occupation and rental by aged persons.

Senator ARMSTRONG:
Minister for Supply and Development · New South Wales · ALP

in reply - In the dying hours of the Parliament it would be pleasant to hear from members of the Opposition a word of praise for the achievements of the present Government in providing housing for the people, more particularly when we recall that before the present war no administration associated itself with the State governments in the task of providing housing for the people. Some of the approaches made by the present Government to this pressing problem were highly original, and I consider that some appreciation of the efforts of the Government, and particularly of my colleague, the Minister for “Works and Housing (Mr. Lemmon), might well have been expressed by the Opposition. However, since members of the Opposition have refrained from doing so, I take this opportunity to record my personal appreciation of the efforts of the Government and particularly of the Minister for Works and Housing in this important field.

The Leader of the Opposition (Senator Cooper) complained that the Queensland Government had not received sufficient financial assistance from the Commonwealth for its housing programme, and said that the sum allocated to that State was small in comparison with that allocated the other States. However, I point out to the honorable senator that because of the splendid efforts made by the Queensland Government to deal with the matter of housing it has not been necessary for the Commonwealth Government to provide as much money for that State as has been necessary for some other States. The progress made in Queensland under a Labour administration towards providing adequate housing for the people is but another example of what the people may expect from Labour when it is given an extended’ term of office.

Senator Rankin expressed her anxiety that in the national housing programme the need of old people should not be forgotten. Whilst I sympathize with her request, I am afraid that the Commonwealth Government cannot make specific provision for houses to be constructed for aged people. The allocation of houses built by State authorities with the financial assistance of the Commonwealth is entirely a matter for those authorities and we cannot interfere in such a matter of policy.

Senator O’SULLIVAN:

– Government does require that State authorities shall set aside a certain proportion of houses for ex-servicemen. Could it not provide that, say, at least 1 per cent, of houses erected should be reserved for old people ?

Senator ARMSTRONG:

– The honorable senator has made a useful suggestion, and I appreciate the thought that prompted it. I do not think that my colleague, the Minister for Works and Housing, would have any objection to making such a request to State authorities, and I shall convey to him. the suggestion made hy Senator Rankin and so ably supported by Senator O’sullivan.

Question resolved in the affirmative.

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

page 2134

STATES GRANTS (ENCOURAGEMENT OF MEAT PRODUCTION) BILL 1949

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 Shipping and Fuel · New South Wales · ALP

. I move -

That the bill be now read a second time.

The purpose of this bill is to provide financial assistance to the Governments of Queensland and Western Australia for (a) the construction or improvement of roads in the Channel country of southwest Queensland and the Kimberley area of Western Australia; and (b) improvements to stock routes serving those areas.

Details of these works are included in clauses 4 and 5 of the bill. With new and improved roads in the two areas the transport of fat cattle by road vehicles can he undertaken and the losses in hoth weight and quality at present caused by long and difficult journey on the hoof will thereby be obviated. By improving certain stock routes in Queensland, the droving of store cattle from the Northern Territory and the north-west of Queensland into the fattening areas of the Channel country will be assisted. The proposed new road in the Kimberleys will not cater for all the cattle in the area served by the Wyndham meat works, and it is, therefore, necessary to improve certain stock routes along which cattle will continue to be moved on the hoof to Wyndham. The construction and improvement of these roads and stock routes form part of the drive Australia is making to stimulate meat production in order to increase the export surplus available to the United Kingdom. In the face of world, shortages of meat supplies and difficulties of purchasing beef in South American markets, the United Kingdom looked to Australia as a potential source of further supplies and early last year sent a party of experts to Australia under the leadership of Sir Henry Turner. The party made various inquiries throughout the Commonwealth, and at the close of the visit submitted a report indicating that northern Australia offered possibilities for increased beef production provided better transport facilities were available.

Discussions with the United Kingdom authorities were continued in London by the Prime Minister (Mr. Chifley) in July last year and by Commonwealth officers the following September and October. It was then explained to the British authorities that much investigational work was necessary before the Commonwealth could put forward any firm proposals for the development of meat production, and that, although at the time detailed figures were not available, it was clear that, to increase substantially the exportable surplus of meat, the Government as well as producers would have to undertake a considerable and costly programme of development. It was also pointed out/that increased meat supplies could not be expected immediately, but would involve a gradual process spread over many years. A long-term meat agreement was, therefore, sought from the United Kingdom authorities in order to safeguard the Government and producers alike in the commitments they would have to undertake over a lengthy period.

In London last April, the Prime Minister had further discussions with United Kingdom Ministers, who again stressed the importance of obtaining increased meat supplies from Australia, and urged the Commonwealth to promote developmental schemes designed substantially to raise exports to the United Kingdom to a certain level within an agreed period. In return for an undertaking on the part of the Australian- Government to promote schemes offering a good prospect of increased supplies, they declared their willingness to enter into arrangements that would guarantee a market in the United Kingdom at reasonable prices for the whole of the exportable surplus of meat from Australia up to a specified ceiling during a period of fifteen years. Tentative arrangements were then made for the negotiation of a formal agreement as soon as the Commonwealth had completed its investigational work and formulated concrete plans for greater production. Details of the formal agreement are at present the subject of negotiation in London on the basis of a number of firm propositions aimed at encouraging meat production. Development of the Channel country of south-west Queensland and the area served by the Wyndham meat works, which also embraces the Victoria River region of the Northern’ Territory, aided by the provision of better transport facilities, forms part of the overall scheme. The Channel country proposals cover the construction and improvement of 52S miles of roads, the erection of eight cattle loading and unloading facilities at selected points along the roads, and, by the installation of more frequent watering places, the improvement of various stock routes serving the area. It is proposed to reimburse the Queensland Government half of the capital cost of the stock route improvements, up to a limit of £75,500, and the full capital cost of the other works, estimated to cost £900,000. By facilitating the movement of cattle to and from the fattening areas of the Channel country, it is expected that the present average annual turn-off of 60,000 head of cattle from the area will he progressively increased over a period of five years to 100,000 head. The resultant increase, in terms of dressed beef, would be approximately 12,000 tons a year.

In the Kimberley area of “Western Australia it is proposed to construct an all-weather road from Wyndham to Nicholson Station, a distance of approximately 2S2 miles, and to build a major bridge over the Ord River at Button’s Crossing. Improved watering facilities along certain stock routes are also proposed. Provision is made for the Commonwealth to meet the full capital cost of the road and the bridge, estimated to cost £1,159,000, and half of the capital cost of the stock route improvements, subject to an upper limit of £31,500. The Victoria River region of the Northern Territory is also within the area supplying the Wyndham meat works. Two feeder roads are to be constructed from the main WyndhamNicholson road to Victoria River depot and Wave Hill station. These feeder roads, measuring 225 miles, will be located almost entirely within the Northern Territory. Their construction will therefore be carried out by the Commonwealth, and it is not necessary to include in ‘ the present measure any separate financial provisions in connexion with them. It is estimated that the improved facilities for the movement of cattle in the area serving the Wyndham meat works will, over a period of ten years, enable tho present beef output of 8,000 tons a year to be increased to 1S,000 tons a year.

As. the total quantity of frozen beef exported from Australia during 194S-49, exclusive of offals and canned meat, was about 85,500 tons, the expected increases in beef tonnages from the Channel country and the Wyndham meat works a.rea, amounting -in all to about 22,000 tons a year, represents such substantial gains as to justify fully the works being undertaken with as little delay as possible. The bill provides for plans and specifications of the works in both States to incorporate the standards of design determined by the Commonwealth, but the States are free to raise these standards, if they so desire, at their own expense. It is proposed that the Treasurer shall make advances to the States and settle on the . basis of half-yearly statements of expenditure certified by the State Auditors-General. The Commonwealth’s plans for encouraging meat production also include extensive developmental measures in parts of the Northern Territory beyond the Victoria River region. In those areas it is proposed to construct 1,400 miles of roads at a total estimated cost of £337,000, and to expend £170,000 on improvements to stock routes. In addition, the Government has approved a station development scheme in the Northern Territory, and, to assist the implementation of the- scheme, will contribute £1,500,000 towards the cost of additional watering points on stations. These measures, together with cooperative effort on the part of private interests will, it is expected, enable an ultimate annual increase of approximately 3S,000 tons of beef to be obtained from the Northern Territory, excluding the Victoria River region, after a period of, say, fifteen years. I commend the bill to honorable senators.

Senator COOPER:
Leader of the Opposition · Queensland

– The members of the Opposition, all of whom represent Queensland, welcome this bill, and appreciate fully what the Minister for Shipping and Fuel (Senator Ashley) has outlined. However, I desire to offer some constructive criticism. Although I have had little opportunity to study the provisions of this measure, I have gleaned from authoritative press statements some details of the proposed scheme, the hub of which is the meat agreement. Unless the meat agreement is to be effective for a reasonable number of years the stimulus to the people engaged in the cattle-raising industry of this country will be limited. 1 point out that approximately five years will elapse before any new production will be turned off as fat cattle.

Senator O’FLAHERTY:
SOUTH AUSTRALIA · ALP

– Why five years ?

Senator COOPER:

– The breeding season is commencing now. Approximately twelve months will elapse before the new cattle are born, and it will be another four years before they ‘can be turned off as fat cattle. Certain types of cattle are quick producers, but most of the cattle in the beef industry are Hereford shorthorns, which cannot be produced and turned off under a period of four years unless they have the benefit of good country and good seasons.

The bill proposes that the cattle shall be brought down to certain fattening, areas in the Channel country of Queensland. I am fairly well acquainted with the Channel country. As Senator Collings knows, that region is entirely dependent for good seasonal conditions upon the rainfall over the upper reaches of the rivers which pass through it. Severe droughts sometimes occur in the north-western and western parts of Queensland. In the first place, we should assure ourselves that conditions in the fattening areas will be good. At present there are no facilities for storing water in good times so that the country can continue to be productive in times of drought. An enormous volume of water is wasted every year in the Channel country. Most of it runs to Lake Eyre, where it either evaporates or soaks into the ground. That represents a great waste of potential wealth. During good seasons Australia has no better country for the bulk fattening of cattle than the Channel country. Some of the irrigated districts hi Victoria are better, but they are not large enough. The fact is that we must expect to wait five years before obtaining the benefit of any great increase of take-off from young stock. The second proposition, with which I agree, is that production of beef can he increased from the fattening of store stock. Apparently the aim of the Government, in cooperation with the Government of Queensland, is to move stock from dry areas to the Channel country. Provided that the land is in good condition, we shall obtain an early benefit from the turning-off of store stock as fat cattle. But that will not actually increase the numbers of cattle in the country. Those animals would be kept as stores in any case and would reach the market probably a year later.

The bill proposes that cattle shall be transported by road. That is the cheapest and probably the quickest method of transporting them. However, from a long-range point of view as well as from the point of view of national defence, the Government would be wise to consider the advisability of establishing rail services in order to provide the necessary transport facilities. My views on this subject are supported by the recommendations that were made by a commission on meat works and abattoirs that was appointed by the Queensland Government in 1945. The commission reported that the Channel country was of national importance and recommended the construction of a railway from Bourke, in New South “Wales, to Camooweal on the border of the Northern Territory and Queensland, with the Dajarra, Yaraka and Quilpie lines connecting with it and the main line proceeding from Camooweal to the Northern Territory. I admit that the establishment of a railways network would be a much more expensive proposition than any system of road transport, but it would be of immense value to the defence of the nation and to the beef industry in the long run. The network would link all lines in Queensland from the north to the south. The commission stated its views upon this aspect of the matter in the following terms : -

The far-western route would be a line which would definitely benefit the Commonwealth. Its influence upon Northern Territory development alone assures this. And it confers advantages on all the Southern States, as well as on Queensland, as the following illustrations demonstrate :-

Stock in drought periods, or at any time, could be transferred from the Northern Territory and from any .part of North, Central or Western Queensland to any district in the Southern States. And, vice versa, stock could be transported from the Southern States to the Northern Territory, or to any part of North, Central or Western Queensland at any time such transfers might be desired.

There are large cattle-raising holdings on the eastern side of the State, and they could be’ linked to the valuable cattle fattening country by rail. The report continued -

The Southern States would receive an increasing quantity of .prime beef in those months when an acute shortage in beef supplies in Australia is now noticeable. And as population increases, unless steps are taken tq relieve the situation, this shortage must become more accentuated year by year.

South Australia’s interests were dealt with in the following paragraph : -

South Australia has an interest in the construction of the line, for an appreciable area of country in that State is flooded by the rivers, and ways may be found by which the area may be extended.

I ask the Government to keep that proposition in mind. I realize that a railways system could not be completed nearly so quickly or cheaply as the road transport system that the Government envisages, but it would be of greater value to the nation in the final analysis. It would establish a complete link between Darwin and Perth, and would obviate the necessity for long hauls along the eastern coastline to the south. The existing railways near the coast would be extensively vulnerable in time of war. “We were very fortunate during the recent war that the railway system along our eastern seaboard was not damaged. If that system were dislocated transport connexion with the northern areas of the continent would he seriously interrupted. Therefore, the provision of railway connexion as I have suggested would be of tremendous value not only for the purpose of developing our cattle-fattening scheme but also from a defence point of view.

At present, as the result of immigration, our population is increasing fairly rapidly. We must remember that we shall have to feed many more people in this country in the future. That will place a greater demand upon our meat production for local consumption. Therefore, unless meat production in the Channel country is substantially increased all of the advantages of providing these facilities will disappear. I believe that the main hold-up in the production of cattle and sheep is the shortage of essential materials required for the improvement of pastoral properties. I refer to such materials as iron, wire, bore casing and windmills. Large holdings such as Victoria River Downs and Wave Hill stations require to be improved to a very great degree before they can reach their full capacity in meat production. Victoria River Downs station, which is 16,000 square miles in area, is nearly as large as Tasmania. Improvements which must necessarily he effected on such a holding to bring it to its full meat-producing capacity would cost hundreds of thousands of pounds. On smaller holdings probably the most important requirements will be fencing materials.

The point I emphasize is that unless materials required to effect these improvements to pastoral properties are made available it will be practically useless to provide increased transport facilities to the northern parts of the continent. The provision of first-class roads and other transport systems are necessary, but they are complementary to the need to improve the carrying capacity of those areas. Unless the problem is handled on that basis we shall not succeed in increasing meat production to the degree necessary to enable us to provide adequate supplies of meat to our kith and kin in the United Kingdom.

Senator TANGNEY:
Western Australia

– As a representative of Western Australia, I congratulate the Government on introducing this measure. It is about time that somebody did something for the north-west portion of the Commonwealth. I know the Kimberley country very well, and I have seen the evils that have resulted from the exploitation of the district. Whilst much wealth has been taken out of the Kimberley country and sent abroad nothing has been given to those areas in return. I also view the bill with great pleasure because, ultimately, it will be the means of increasing the moat ration that can be made available to the people of Great Britain. Perhaps, it will be some years before we can achieve that goal, but we can do so only by long-range planning. We do not wish to see the British ‘people held up any longer to ransom by the meat producers of South American countries. At present, the people of Great Britain are allowed only from ls. 4d. to ls. 6d. worth of meat a week. When I was in Great Britain last year they were allowed only lOd. worth of meat a week. I believe that any honorable senator would promptly divorce his wife if the latter served up to him for his breakfast the quantity of meat that is allowed as a full week’s ration to the British people. It was pitiful to see the subterfuges to which British housewives resorted in order to make the family’s weekly meat ration palatable. As this bill will eventually prevent the continuance of such conditions in Great Britain, it should commend itself to the Senate for that reason alone.

The measure is of tremendous importance to the Commonwealth from a strategic point of view. Some of the holdings in the areas that it will benefit are almost as large as the State of Tasmania. Very little of the wealth that has been taken from those areas in the past has been devoted to providing decent living conditions and amenities for the people who produced it. One of the objects of the bill is to enable something to be done for the improvement of cattle and other stock. I hope that the term “ other stock “ includes the human beings who will make this scheme possible. For instance, at Wyndham where the meatworks which serve the Kimberley district are situated, housing, health and schooling facilities are appalling. In view of the magnitude of the cost of this scheme, I trust that the Government will be able to arrange with the States concerned to expend some of this money in promoting the welfare of the people who are going to do the work that the scheme entails. I have seen cattle arriving not only at the Wyndham meatworks but also at the meatworks in Derby in an emaciated condition after their long trek through inhospitable country under appalling climatic conditions. Up to date we have not developed1 the meat-producing capacity of those areas mainly because of the lack of first-class roads.

Recently the Government of Western Australia commenced experiments with an airlift by transporting, not live-stock but meat by air from those areas to ports in the south and thus expediting the conveyance of the meat to the markets of Europe. Whilst the development of first-class roads is essential, the opportunities offered by the use of air transport in order to expedite the shipment of meat to England should not be overlooked. As a Western Australian I commend the bill. I hope that it will be the means not only of developing the resources of the far north but also of making that portion of the Commonwealth a better place for people to live in. We must give adequate security to the women folk whose participation in this scheme is essential to its success. Unfortunately, in the past the women folk in those areas have been denied the ordinary comforts .and the amenities of life. If their interests are looked1 after they will be better able to care for their menfolk and thus ensure the success of the scheme.

Senator O’SULLIVAN:
Queensland

– I have great pleasure in supporting thi3 bill, not because I am a Queenslander, but because I am an Australian. The Government’s expression of a truly Australian attitude in this measure may be a sign of the Christmas spirit, or perhaps of the Government’s belated repentance. At any rate, it shows that, on some occasions, at least, the Government can act in accordance with an Australian conception of what is required for the development of this country. As a Queenslander, I do not feel that I am an alien in this country. I regard Queensland as a vital part of Australia, and it is good to see that the Government recognizes that the development of Queensland, and even of Western Australia, is important to the development of the continent as a whole. If that spirit could permeate more legislation, it would be amazing to see on what small matters we in this chamber disagreed, and on what tremendous issues we, as Australian legislators, could get together. We would find that we had much time for working together, and little time for disagreeing. Some day perhaps those obnoxious pieces of legislation which from time to time are brought down by this Government will be forgotten, and we shall be able to get on with real legislation such as this which will inevitably result ‘ in the development of this country. I am not in a position to comment on the technical portions of the bill, but I assume that the scheme will be implemented after consultation with the most competent advisers that are available. As a Queenslander, I do not feel that my State is receiving under this measure a benefit from an alien Government. My view is that the Australian Government is doing the correct and sensible thing in assisting in the development of a most important part of the Commonwealth.

Senator O’FLAHERTY:
South Australia

– It is pleasing to hear words of commendation of the Government from an Opposition member. Senator O’sullivan says that if we can agree more, we shall be able to get on with the business of the country. That is a remarkable statement from the one who is primarily responsible for much of the disagreement that occurs in this chamber. A common Opposition complaint is that the Government is seeking to stifle criticism of its administration. That is quite untrue. The thoughts of some men, of course, run in small circles, and apparently, the expression of a differing viewpoint is regarded as a resentment of criticism. Nothing could be further from the truth. This Government’s legislative programme has shown clearly that- nation-wide development is an important feature of its policy. Proof of that is to be found in the complete lack of unemployment in Australia, the large influx of immigrants, business expansion throughout the Commonwealth and the piling up of substantial overseas credit balances from trade surpluses. Senator O’sullivan believes that if we can agree we shall get somewhere. I suggest that we are already getting somewhere very rapidly.

The Leader of the Opposition (Senator Cooper) spoke about a proposed railway to skirt the western part of Queensland, opening up the interior of that State, and serving portions of northern New South Wales as well. I believe that the honorable senator also mentioned South Australia, but I do not think that the railway that he has in mind would receive much support from the north-eastern portion of that State. As the honorable senator adopted a parochial attitude I remind him that views such as his are impeding the standardization programme. He said that the line that he had in mind would be useful for defence purposes. In my opinion, 3-ft. 6-in. gauge railways are merely toy lines. Of what use are they for defence ? Standard gauge lines capable of carrying heavy rolling stock are required for that purpose. Although the proposal contained in this measure will not assist South Australia in any way it will be a great boon to the Commonwealth as a whole. I under stand that the Government proposes to construct roads eastwards from Wyndham, to link with feeder routes from the Victoria River Downs country and elsewhere. I am most concerned at the ‘possibility that something will be done that will benefit the Vestey monopoly in this country. That monopoly has held undeveloped leases in the Northern Territory for many years. In my opinion the Vestey interests should be cleared from this, country, to make way for men who will do their best to develop our outback areas. I am informed that there is a possibility that the old meat works at Darwin will be re-opened. Feeder roads from the Vestey properties will not be of any benefit to this country, but will merely enable that organization to spread its tentacles further over this continent. Concerning the suggestion made by the Leader of the Opposition that railways should be provided in the Channel country for the carriage of livestock, I say at once that no expert would favour that proposal except on the grounds of national defence. It certainly would not be approved by any economist. After all, the purpose of the present measure is to develop the country in order to increase the supply of beef for Great Britain.

I also express my disagreement with the opinion expressed by the Leader of the Opposition about the time that will be required to increase the production of beef for Great Britain. The principal difficulty associated with raising stock for beef purposes around Wyndham ie that although the stock do quite well in that country they lose their condition when they have to travel to the slaughtering points. Incidentally, it is important that stock that are about to travel long journeys should not be too fat. In any event, a small reserve of good country must be available for the stock when they complete their journey so that they can recover their condition before . they are slaughtered. The present waterholes in that country are too far apart for comfortable travel by stock, and the consequence is that the stock lose their condition because they have to be driven from waterhole to waterhole. If watering places in that country were more numerous stock could travel more slowly and would arrive at their destination, the slaughter yards, in much better condition.

The next point that I desire to make is that by more selective breeding it should be possible to produce sufficient beef of prime export quality in less than -five years, notwithstanding the contention of the Leader of the Opposition that the production of stock cannot be increased sufficiently within five years.

Senator Cooper:

– From where are pastoralists in that country to obtain the services of the special stud cattle that are necessary to improve their herds ?

Senator O’FLAHERTY:

– Sufficient pedigreed polled Herefords and AberdeenAngus cattle are now available in this country to enable breeders to increase their herds.

Senator Cooper:

– There is only a limited number of stud cattle of that type. No herds are available.

Senator O’FLAHERTY:

– The Leader qf the Opposition is obviously labouring under the delusion that because only a limited number of stud cattle are available it will be many years before Australia’9 herds generally can be improved sufficiently to increase the yield of beef. He is entirely wrong. Although there is only a limited number of pedigreed cattle available for breeding purposes, the point is that there are more of such cattle available in Australia now than ever before, and a great deal more is now known about scientific and selective breeding. I do not say that the entire character of our beef cattle could be changed in five years, but I point out that within that period it would he possible by selective breeding to increase very considerably the yield of beef from stock for slaughtering. It is now possible to breed stock of smaller stature, which are fit for slaughtering in four years. In conclusion, I trust that the Minister will take notice of the remarks that I made previously concerning Vesteys Limited.

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

m reply - The Opposition, after expressing its approval of the measure, immediately proceeded to make a number of alternative suggestions. Let me assure the Leader of the Opposition (Senator Cooper) at once that before the Govern ment decided to embark upon this scheme it consulted with and took the advice of, English and Australian experts as well as. that of representatives of the cattle industry in this country. Unlike the Leader of the Opposition, I am not relying upon my personal knowledge of this matter-

Senator Cooper:

– I did not argue from my own experience, but from the contents of an official report.

Senator ASHLEY:

– The Leader of the Opposition made the stupid suggestion that, instead of concentrating on improving the production of beef during the next few years by building roads and improving the water supply in the back country, the Government should embark upon an extensive policy of railway construction, notwithstanding that we are desperately short of man-power and materials.

Senator Cooper:

– The Minister should be fair. I was outlining a long-range policy.

Senator ASHLEY:

– A long-range policy may be all very well for the remote future, but it is necessary to produce more meat for the people of Great Britain as soon as possible. I appreciated very much the contribution to the debate made by Senator 0’Flaherty. particularly concerning the period of time necessary to increase the production of beef. The honorable senator pointed out that when proper roads and facilities are provided the number of cattle will be increased considerably. The Leader of the Opposition complained about the lack of railways in the interior of Queensland. Of course, that is primarily a matter for the Queensland Government. The railways could not be provided for many years to come. Senator Tangney referred to the housing conditions in Wyndham. Of course that is a matter for attention by the Western Australian Government. If that Government required financial assistance to improve housing conditions at Wyndham, possibly the Commonwealth would grant such assistance. Senator O’Flaherty referred to the leases held by the Vestey organization. It is not the intention of this Government to assist Vesteys any more than any one else. The Government intends to subdivide the large tracks of country at present held by Vesteys and other organizations in Australia when the present leases expire.

Senator Cooper:

– Why was the lease of the Alexandria station renewed?

Senator ASHLEY:

– If the honorable senator so desires, 1 shall obtain full details in relation to that matter and supply them to him in due course. Senator O’sullivan commended the Government for introducing this measure. I remind the Opposition that when antiLabour governments were in power in this country and adequate man-power and materials were available, no developmental schemes such as the one now being debated and the Snowy River and Burdekin River projects were undertaken. The present Labour Government is the only Australian Government that has ever given practical application to developmental schemes in this country. It does not merely give lip service to those schemes during election campaigns. This scheme will prove of great assistance in the development of Australia and in connexion with the production of food for needy peoples on the other side of the world.

Question resolved in the affirmative.

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

page 2142

UNITED NATIONS INTERNATIONAL CHILDREN’S EMERGENCY FUND GRANT BILL 1949

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator McKENNA:
Minister for Health and Minister for Social Services · Tasmania · ALP

– I move -

That the bill be now read a second time.

This bill is to provide for the fourth contribution by the Australian Government to the United Nations International Children’s Emergency Fund. The amount of the contribution involved is £500,000, which will bring the total contributions by the Australian Government to £3,220,000. The purpose of the fund is to provide care for sick and hungry children and expectant and nursing mothers in countries which were devastated by the war, and where child welfare standards are particularly low. In Europe supplementary meals are provided daily for nearly 5,000,000 children and nursing mothers. The fund, iv co-operation with the World Health Organization, is conducting a world-wide campaign against tuberculosis which, it is hoped, will ultimately cover 100,000,000 people. In the Far East and South-East Asia, programmes have been drawn up for the feeding of children, the training of child welfare experts, and the control of tuberculosis and other diseases.

The fund urgently requires financial support to keep its programmes going and to fulfil plans which have already been made.

Previous Australian contributions have been spent on the purchase of supplies in Australia, and this course will be followed if the Parliament agrees to an additional contribution. These supplies have been principally foodstuffs and raw materials for clothing. Fats, preserved milk and dairy products, protein foods including vegetables, wheat flour, scoured wool for blankets, and hides have all been shipped to countries overseas. Distribution is on the basis of genuine needs. The allocation of the fund’s resources is determined by a programme committee and by an executive board, on both of which the Australian Government is represented. The generous contributions of Australia in the past have been commended by those closely associated with the work of the fund. For example, the executive director of the fund has pointed out that, on a per capita basis, the Australian Government’s contribution has exceeded that of any other country. In addition, the voluntary contributions of the Australian public, through the appeal conducted in 1948, have been greater than those from any other country. For every dollar that is contributed by other governments, the United States Government contributes 2.57 dollars. This will apply to the present contribution of £500,000 by Australia. The enactment of this measure will demonstrate the willingness of Australians to share their good fortune with others less happily placed. The Government is satisfied that the fund is being conducted efficiently and with great impartiality. It is one of the most constructive works of the United Nations. I commend this measure to the Senate.

Senator RANKIN:
Queensland

– The Opposition supports this measure and does not desire to delay its passage. I was interested to learn from the Minister’s second-reading speech that the voluntary contributions of the Australian public, through the appeal conducted in 194S, have been greater than those from any other country. That is proof of the sincere desire of the Australian people to assist helpless children in other countries. It is a great tragedy that the aftermath of war should include untold suffering on women and children throughout the world. Australians who have not suffered the dangers and hardships of life in devastated countries should be happy to have the opportunity to assist the children who have suffered from war and its dreadful after-effects. Every child in the world should have the best of care and attention, be maintained in good health, and provided with adequate clothing and all the other requisites of security. All of us must feel deeply for the children who have experienced great privations as the result of the war, about the causes of which they knew nothing. I spent a considerable time on the continent of Europe before the war and saw there many children living under very happy conditions. .To-day the continental picture in many areas is one of almost unrelieved hardship and misery. Most Australians sincerely want to assist the women and children of war-damaged countries to overcome both the physical and the mental disturbances of recent years. I am interested to see that the fund is being operated in co-operation with the World Health Organization, which is carrying out a world-wide campaign against tuberculosis and other diseases that are rampant in devastated areas. Members of the Opposition hope that the health and general well-being of the women and children who will benefit from this measure will soon be elevated to a much higher standard than has pre vailed during recent years. We hope that they will be provided with the good food, clothing and comfortable homes that are essential to the feeling of security which is of the greatest importance to every child in the world and which we wish them to enjoy.

Question resolved in the affirmative.

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

page 2143

CUSTOMS TARIFF BILL 1949

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator COURTICE:
Minister for Trade and Customs · QueenslandMinister for Trade and Customs · ALP

– I move -

That the bill be now read a second time.

The tariff schedule to which this bill relates was introduced on the 7th September, 1949, and the memorandum which has been distributed to honorable senators shows a comparison of the rates of duty under each item appearing in the bill and those operating under the Customs Tariff 1933-1948. The items contained in the bill may, for convenience, be considered as falling into three main groups, namely, protective, revenue, and administrative. The goods in which protective incidence is involved are corsets, fuel injection equipment, cook ing stoves, cinematographs and surgical and dental equipment. In each case, the items were reported upon by the Tariff Board after a public inquiry into all aspects of the industry concerned. The various reports have been tabled in the Parliament and contain a summary of the evidence submitted and the comments and recommendations of the Tariff Board.

The revenue group of items includes wireless valves, outside packages and passengers’ baggage. The reduction of the duty on wireless valves should enable these goods and also wireless sets to be made available to the public at lower prices. The admission of outside packages free of duty should decrease costs in industry and will simplify the work of both the importer and the Department of Trade and Customs. The proposal to grant concessional treatment to the goods brought in by passengers for their own personal use or as gifts will relieve passengers of the payment of protective rates of duty on. such of the goods as are not brought in for purposes of trade. The concession should assist in relieving the congestion at the wharfs when a vessel arrives with a large complement of passengers and, I think, will provide an incentive for an increase of the tourist traffic into Australia.

The remainder of the items in the bill are mainly of an administrative nature and do not represent any effective variation of rates of duty. Some minor anomalies have been eliminated, and it is proposed to add a proviso to item 373 (a) in order to assist representatives of overseas countries who, having obtained duty-free admission of goods, may wish to sell or dispose of the goods within two years but feel that such an action would be a breach of the privilege afforded under the item. As the individual items come up for consideration, I shall, as far as possible, supply honorable senators with any information that they may require. I commend the hill for favorable consideration.

Senator COOPER:
Leader of the Opposition · Queensland

– The bill provides, amongst other things, for tho reduction of certain import duties so as to facilitate the landing in Australia of passengers from overseas, particularly tourists. Passengers’ baggage and personal belongings will be granted free admission. This is a welcome provision. Upon returning to Australia from abroad I could not fail to notice the cumbersome procedure of customs inspection to which every traveller had to submit. Even the smallest articles had to be itemized, and customs duty was levied on each of them. I did not object so much to the payment of duty, which in my case amounted to only £5, as to the delay that was involved and the inquisitorial methods that necessarily had to be used. I am glad that the Government has decided to simplify the procedure. The Opposition supports the bill.

Senator O’BYRNE:
TASMANIA · ALP

– I take this opportunity to draw the attention of the Minister for Trade and Customs (Senator Courtice) to the difficulties that arise from the increasing flow of goods into Australia and the inadequate number of customs import agents in some of our big cities. Thereappears to be more work available forthose agents than they can handle efficiently, and considerable delay frequently occurs in clearing goods from the wharfs. I suggest that delays of the kind1 to which I have referred could be reduced through the registration of more agents in the capital cities in order to deal with the increased quantities of imports. The persons who brought this matter to my notice explained that undue delays are occurring owing to pressure of business upon the relatively small number of existing import agents.

Senator COURTICE:
Minister for Trade and Customs · Queensland · ALP

. - in reply - There is no doubt that imports have increase very considerably during the last few years, and that consequently greater pressure has been placed on existing import agents. The matter is primarily the concern of persons and firms who employ import agents. However, I shall bring the honorable senator’s remarks to the notice of the ComptrollerGeneral of Customs.

Question resolved in the affirmative.

Bill read a second time.

In committee:

The bill.

Senator COOPER:
Leader of the Opposition · Queensland

. - I refer to item 409 (a), which admits duty free “ Passengers’ personal effects; passengers’ furniture and household goods which have been in actual use by such passengers for at least one year, not exceeding £125 Australian currency in value for each adult passenger “. Does that item cover all classes of passengers’ personal effects?

Senator Courtice:

– That is so.

Senator COOPER:

– And in respect of personal effects in excess of that aggregate value customs duty will be levied at the ordinary rate?

Senator Courtice:

– Yes.

Senator COOPER:

– I commend the. Government for making that amendment.

Bill agreed to.

Bill reported without requests ; report adopted.

Bill read a third time.

page 2145

EXCISE TARIFF BILL 1949

Bill received from the House of Representatives.

Standing and Sessional Orders suspended’.

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

Second Reading

Senator COURTICE:
QueenslandMinister for Trade and Customs · ALP

– I move -

That the bill be now read a second time.

As with the Customs Bill, which the Senate has just dealt with, the tariff schedule to which this bill relates was introduced on the 7th September last. A comparison between the amended rate and the rate under the Excise Tariff 1921- 194S is given in the explanatory memorandum which was distributed earlier. The bill reduces the excise rate on wireless valves and is complementary to the reduction of the duties on these goods contained in the Customs Bill. It has been claimed that the duty on wireless valves tends to limit the number of valves used in each wireless set and that the duty accumulates considerably by the time the sets reach the public. This reduction of duty, therefore, should be reflected in the prices charged for these essential components of wireless sets and for the wireless sets themselves.

Senator COOPER:
Leader of the Opposition · Queensland

– As the measure is complementary to the Customs Tariff Bill which the Senate has just passed, the Opposition does not oppose it.

Question resolved in the affirmative.

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

page 2145

CUSTOMS TARIFF (NEW ZEALAND PREFERENCE) BILL 1949

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator COURTICE:
QueenslandMinister for Trade and Customs · ALP

– I move -

That the bill be now read a second time.

As with, the customs and excise bills which the Senate has just dealt with, the tariff schedule to which this bill relates was introduced on the 7th September last. A comparison of the alteration with the Customs Tariff (New Zealand Preference) 1933-1948 is given in the explanatory memorandum which was distributed earlier. The proposed amendment is complementary to the amendment made to Item 320 (b) in the Customs Bill and is necessary to comply with Australia’s obligations under the General Agreement on Tariffs and Trade.

Senator COOPER:
Leader of the Opposition · Queensland

.- This bill is purely a machinery measure. The Opposition does not oppose it.

Question resolved in the affirmative.

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

page 2145

CUSTOMS TARIFF BILL (No. 2) 1949

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator COURTICE:
QueenslandMinister for Trade and Customs · ALP

. I move -

That the bill be now read a second time.

The tariff schedule to which this bill relates was introduced on the 12th October, 1949, and the memorandum which has been distributed to honorable senators compares the proposed rates with those operating under the Customs Tariff 1933-1948. The bill covers spectacle lenses, spectacles, spectacle frames, and magnifying and reading glasses and is consequent upon the Tariff Board report on the Australian optical industry in which the proposed duties were recommended. The report has been tabled in Parliament and contains a summary of the evidence submitted and the comments and recommendations of the Tariff Board. During the recent war, the interruption to the supply of optical goods from overseas caused a considerable expansion of the Australian industry and the manufacture of several new products was commenced in this country. Single vision lenses which had been imported before the war were ground in quantities from glass blanks, imported or made locally. Spectacle frames were produced by an injection moulding process, and a commencement was made in the manufacture of gold-filled mountings. Various types of sunglasses and goggles were also manufactured. The Tariff Board has made a thorough survey of the industry, and considers that the rates that it has recommended are necessary for the industry’s protection. The opportunity has also been taken in this bill to vary the Customs Tariff in respect of British nonselfgoverning colonies in. order to bring it into line with the present-day status of those countries.

Senator COOPER:
Leader of the Opposition · Queensland

.- This bill is largely a machinery measure validating Customs Tariff alterations. I understand that the tariff increases on spectacles, spectacle frames, sun-glasses and goggles were based on a report by the Tariff Board. I should like to know from what countries those articles are chiefly imported, and whether these increased duties will have any appreciable effect on their prices in this country. I remind the Minister for Trade and Customs (‘Senator Courtice) that they are not luxury goods, but are in common use. The memorandum shows that the general tariff on certain lenses has been reduced from 52£ per cent, to 37i per cent., and the British preferential tariff from 27£ per cent, to 10 per cent. I should like to know whether those reduc tions have been made because the Australian lens industry has become more efficient, and therefore more able to withstand overseas competition.

Senator COURTICE:
QueenslandMinister for Trade and Customs · ALP

. - in reply - The whole economy of this industry was thoroughly investigated by the Tariff Board. As I indicated in my second-reading speech, the industry developed during the war when local manufacture had to he undertaken to meet defence and civil needs. After the war, when other countries got back into full production and were able once again to export their products to this country, the Australian industry had to be re-examined. It is as the result of that examination by the Tariff Board that these alterations have been made. The aim is to protect the Australian industry. Australian imports of these commodities come mainly from France, Italy and the United Kingdom. I assume that the Tariff Board has fixed the new tariff scales in accordance with the needs of the industry.

Senator Cooper:

– Is there a lensgrinding industry in this country?

Senator COURTICE:

– Yes, but the blanks are imported. Lens-grinding is carried out on a large scale in Sydney. That industry did an excellent job for this country during the war, and should be encouraged.

Question resolved in the affirmative.

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

page 2146

TEMPORARY CHAIRMAN OF COMMITTEES

The PRESIDENT (Senator the Hon Gordon Brown:
QUEENSLAND

– Pursuant to Standing Order 28a, I lay on the table my warrant nominating Senator O’Byrne to act as Temporary Chairman of Committees when requested so to do by the Chairman of Committees, or when the Chairman of Committees is absent.

page 2146

STATES GRANTS (COAL MINING INDUSTRY LONG SERVICE LEAVE) BILL 1949

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 WalesMinister for Skipping and Fuel · ALP

– I move -

That the bill be now read a second time.

The purpose of this bill is to arrange for the financing of long service leave benefits which have been granted by an award of the Coal Industry Tribunal issued on the 14th October, 1949, to certain employees in the coal mining industry. Other measures which will be brought forward shortly are complementary to this bill and, taken with this measure, form a single scheme.

Honorable senators will no doubt be aware that after having lodged a claim with the Coal Industry Tribunal for long service leave, which up to that time had not been determined, on the 19th May of this year the miners’ federation also included long service leave in a log of claims served on the colliery proprietors, the Joint Coal Board and the Commonwealth and State governments. This log of claims was considered at a series of conferences between the parties concerned. At those conferences it was emphasized that if an award of long service leave were made the cost could not be borne by the individual owners but would have to be financed on an industry basis. As the representative of the Commonwealth Government, I said that if long service leave were granted either by agreement between the unions and the proprietors or by an award of the tribunal, the Commonwealth Government would arrange for finance for such a scheme. At the same conference the then New South Wales Minister for Mines, Mr. Baddeley, who represented the New South Wales Government, stated that his Government would play its part. Honorable senators will know that those conferences broke down. The tribunal then proceeded to conclude the hearing of the long service leave case and announced that it would issue a draft award for discussion between the parties on the 14th June. Because, however, of the general strike in the industry and the events which preceded it, the draft award was not issued. After the strike ended the matter was reconsidered by the tribunal, which has now made an award in respect of members of the miners’ federation employed’ in the coal-mining industry. This award is identical with that made in draft form prior to the strike. The Government is now proceeding to provide the machinery for the running of the scheme.

It will, no doubt, be evident to honorable senators that it would be impracticable for the cost of the leave to be made the full financial responsibility of the individual employers. I shall mention some of the reasons. During their working lives many employees have changed from one employer to another, and it would be inequitable to place the cost of all such employment solely upon present day employers. Some collieries are not financially capable of meeting the additional cost involved by the leave. Many employees have in the past been employed by colliery companies which are no longer in existence. Moreover, employers would be reluctant to employ men with previous employment in the industry because of the additional liability for long service leave which their employment would involve. This would tend to make labour less mobile within the industry than is desirable, and could result in a loss of skilled labour to the industry. It is also not unreasonable to provide some protection to employees .against employers going out of business or becoming insolvent. In these circumstances the award can only be financed on an industry-wide basis. To make this possible the establishment of a central fund is necessary in order to spread the liability evenly amongst employers, and particularly to finance the heavy burden of retrospective liability.

Broadly, the scheme now placed before the Senate in this interdependent set of three measures is that an excise of 6d. a ton shall be placed upon coal produced by those employees in the coal-mining industry who will receive the benefit of long service leave. The proceeds of this excise will be placed in the Commonwealth Trust Fund, and from this fund the Treasurer of the Commonwealth will be empowered to make grants to the

States. It will be necessary for each State to which the award applies, which includes all States except South Australia, to pass complementary State legislation to authorize the State to reimburse employers for their long service leave liability under the award and for the State to recoup this expenditure from the Commonwealth. The State legislation will need also to establish appropriate administrative arrangements and make the necessary machinery provisions. After the passage of the present legislation, the Treasurer will negotiate with each State, and upon the passage of the necessary State legislation a formal agreement will be entered into between the Commonwealth and the State to provide in detail for payments from the Commonwealth Trust Fund to the State. As provided in clause 4 of the bill, these agreements must be approved by the Parliaments of the Commonwealth and the States before any payments are made from the central fund.

It is intended that the agreements will specify in each case the award to which the scheme applies. Commonwealth funds will not be provided for any increased expenditure arising out of amendments to the award, or for any additional awards relating to the coal industry until the agreements have been amended and the amendments ratified by the Parliaments.

The long-service leave which has been awarded by the Coal Industry Tribunal is based, broadly, on the basis of three months’ leave for every ten years’ service in the industry. Under the award longservice leave is to accumulate in the future at the rate of one-eighth of a shift for each five consecutive shifts worked. Long-service leave will become due when 65 shifts of entitlement, or thirteen weeks’ leave, have accrued. For an employee who works continuously, this approximates three months’ leave for ten years’ service, but if the employee does not do this he will take correspondingly longer than ten years to become entitled to thirteen weeks’ leave. For past periods of employment in the industry leave has been awarded on the basis of five days’ leave for each year of employment up to a maximum of thirteen years, namely, a maximum of three months’ leave in respect of all past employment. No leave may be taken before the 1st January, 1954, but provision has been made in the award for payment in lieu of leave in cases of retirement due to age or ill health or in cases of death. A further provision of the award is that in the future the award will be suspended until the tribunal otherwise orders in the event of a strike in any district. Because of the recent general strike, the tribunal has imposed a penalty, which means that employees must work approximately a further period of twelve months in order to gain the same entitlement as they would have had if the strike had not taken place.

The award issued in respect of members of the miners’ federation will cover all coal mines throughout Australia, with the exception of the State coal mine at “Wonthaggi, where the miners are already entitled to long-service leave under Victorian State legislation, and Leigh Creek in South Australia and the open-cut brown coal mines in Victoria, neither of which is subject to the jurisdiction of the special industrial authorities which have been established for the coal-mining industry.

Under the measure that will be introduced to impose an excise on coal, it is proposed not to tax coal produced by a State. However, the Government proposes that, where applicable, the States should be asked to pay into the trust fund an amount equivalent to the excise and thus become entitled under the agreement to reimbursement of the costs of longservice leave payable to employees at State mines. The cost of the scheme has been estimated on the basis that there will be a peak period for leave in 1954, and the two or three years following and in the few years following 1960. As I have already mentioned, except for payments in lieu of leave to employees in certain cases, leave will not he taken before 1954. During the next eleven years, which includes the two peak periods of leave entitlement, the cost of leave at current wage rates will require an annual payment into the fund of approximately £360,000. This suggests a levy of 6d. per ton on all coal produced, except that produced at Wonthaggi, at open-cut brown coal mines in Victoria and” at

Leigh Creek in South Australia. I commend the bill to the Senate.

Senator COOPER:
Leader of the Opposition · Queensland

– In order to secure a clear picture of the full implication of the provision of long service leave in the coal-mining industry, one would require to study the subject at length. “Will the Minister for Shipping and Fuel (Senator Ashley) inform the Senate of the approximate total cost of this scheme, and furnish information about the loss of production that may be occasioned when the mines commence taking long service leave?

Senator O’Byrne:

– But there is to be mechanization of the mines.

Senator COOPER:

– I should prefer the Minister to furnish the information that I seek. I agree that, if a miner serves the industry loyally for a lengthy period, he is entitled to recognition of that service. The provision of the long service leave to coal-miners was one issue involved in the recent coal strike. Either the Joint 00al Board did not make its decision soon enough, or the miners were ill-advised. Apparently the miners’ leaders decided that they would not wait any longer for the Joint Coal Board to announce its decision on the miner’s claim for long service leave. However, the coal strike is now of the past. Doubtless after due consideration of what would be entailed, the Joint Coal Board, with the assistance of the Government, decided to grant long service leaves to the miners, to be financed by an excise duty of 6d. a ton upon coal produced at all mines except Wonthaggi, the open-cut brown coal-mines in Victoria, and at Leigh Creek in South Australia. The initial cost of implementing this provision will be about £360,000, which will form a charge on the community. I assume that no leA’y will be imposed on the coal-miners themselves. I have not had an opportunity to study many of the technicalities involved. However, during his second-reading speech the Minister stated -

To make this possible the establishment of a central fund is necessary in order to spread the liability evenly amongst employers, and particularly to finance the heavy burden of retrospective liability.

Does that mean prior to this date, or that in future when this fund is established, heavy liabilities will mount as the years go by? Presumably, should a miner who has become eligible for a grant of long service leave die, the monetary value of that leave would pass to his estate? Everything possible has been done by the Commonwealth, the Joint Coal Board, and the people of Australia in relation to miners’ hours of work, the provision of safety devices in the pits, mechanization, annual holidays, and now long service leave, to make conditions in the coal-mining industry equal to, or better than conditions enjoyed by coalminers in other parts of the world. Because the community generally has done everything possible for the coalminers, so that their pay and emoluments and conditions of work are now envied, I hope that in return the coal-miners will give of their best in the future to ensure continuity of production. Because the coal-miners are to receive this long service leave benefit from the community there should be a clear understanding on the part of the coal-miners that they are expected to provide a benefit to the community by maintaining supplies of coal.

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

in reply - The Leader of the Opposition (Senator Cooper) is disturbed about the possible cost of the scheme. I appreciate the reason for his anxiety, but I assure him that the scheme has been carefully examined actuarially. I realize that, if large numbers of aged men were engaged in the industry, heavy demands would necessarily be made upon the fund, with disastrous results. However, provision has been made to ensure that costs shall not exceed a total of £360,000 a year. The agreement will have a retrospective effect so that men who have been employed in the industry for ten or fifteen years will not be excluded from their just entitlements. The honorable senator also inquired about the procedure that would be adopted in the event of the death of an employee. He was correct in assuming that the benefit would be made available to the kith and kin of the deceased man. He declared that everything possible had been done to make working conditions in Australian coal mines better than those in other countries. I do not want to belittle the efforts that have been made by mine owners to provide amenities for employees, but the truth is that those efforts have been noticeable only in very recent years, particularly since the Joint Coal Board was established. Even now the amenities provided for Australian miners are not so attractive as those that are provided for miners in other parts of the world. Our coal-mining industry was neglected for many years, but I hope that the provision of privileges such as long service leave will make work in the mines more attractive to young men than it has been in the past. Until there is contentment in the industry, we shall not be able to obtain the quantities of coal that we need. The effects of dust upon the lungs of miners, especially in the south coast district of New South Wales, have been tragic. The health of men has been ruined and lives have even been endangered by bad conditions in the mines. That is one reason why we have been unable to secure the man-power that we need to maintain adequate production. I hope that, as the result of the provision of long service leave, there will be a continuity of the supply of manpower. Thousands of men have left the industry during the last few years to take other employment. Only by enacting such measures as the bill that we are now considering can we induce young men to enter the mines in order to produce the coal that is essential to the welfare of the nation.

Question resolved in the affirmative.

Bill read a second time.

In committee:

The bill.

Senator COOPER:
Leader of the Opposition · Queensland

– Can the Minister for Shipping and Fuel (Senator Ashley) give me any information about the effect that the long service leave agreement will have upon the supply of man-power, and consequently upon coal production, ten years hence? For every 1,000 men employed in the mines to-day, 3,000 months of long service leave will have to be granted within the next ten years. It is obvious that, even five years from now, considerable numbers of miners will be temporarily lost to the industry while they take long service leave. What effect will that have upon coal production?

Senator Ashley:

– Young men will be coming into the industry continuously.

Senator COOPER:

– If there are, say, 2,000 men in the coal industry to-day, that number will be idle for three months ten years hence.

Senator Ashley:

– Only some of them.

Senator COOPER:

– All of them will be off work, if they are still alive, because they will be entitled to three months’ leave. It will be necessary to recruit more men for work in the mines, but the mineowners have had great difficulty in engaging men in recent years.

Senator Ashley:

– The provision of long-service leave will encourage men to enter the industry.

Senator COOPER:

– We have no assurance of that. The Minister only thinks that that may happen.

Senator Ashley:

– That is our hope. The provision of long-service leave and other amenities is intended to encourage the recruitment of miners.

Senator COOPER:

– Production will suffer seriously unless many more men join the industry.

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

– The Leader of the Opposition seems to be perturbed about the possibility of this measure ultimately causing a reduction of coal production. I hasten to relieve his mind. According to the advice that the Government has received from the authorities concerned, and even from employers, the effect of such measures as the one that we are now considering will be to increase production because young men will be encouraged to engage in coalmining.

Senator Cooper:

– That is what I wanted to know.

Senator HARRIS:
WESTERN AUSTRALIA · ALP

– The Minister for Shipping and Fuel (Senator Ashley) said during his second-reading speech that the longservice leave award issued in respect of members of the miners federation would cover all coal-miners in Australia, with the exception of those at Wonthaggi in Victoria and Leigh Creek in South Australia. I want to make absolutely certain that men employed on the coal-field at Collie in Western Australia will benefit under the agreement. I have an idea that they have not been associated with the miners’ federation since they took an independent stand against the federation during the coal strike. I am sure that the granting of long-service leave to miners will have a good effect upon the Collie field. The mines there have been working at full pressure, and. the men have been breaking production records. They have one of the finest records in the whole of Australia for production, both during World War II. and since. Therefore, I sincerely hope that the agreement will include those men.

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

– I assure the honorable senator that the Collie miners will enjoy the full benefits of the agreement.

Bill agreed to.

Bill reported without amendment; report adopted.

Bill read a third time.

page 2151

COAL EXCISE BILL 1949

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 WalesMinister for Shipping and Fuel · ALP

– I move -

That the bill be now read a second time.

This bill is self-explanatory. It proposes to provide the machinery for the collection of an excise duty on coal in terms of the States Grants (Coal-mining Industry Long Service Leave) Bill which the Senate has just passed. The usual administrative powers are given to officers of the Department of Trade and Customs to permit them to exercise sufficient over sight over coal production in order to ensure that all duty payable is collected. The bill provides for mines producing coal subject to the excise duty to be licensed, and for penalties for contraventions of its provisions.

Senator COOPER:
Leader of the Opposition · Queensland

– As this measure is merely complementary to the States Grants (Coal-mining Industry Long Service Leave) Bill that the Senate has just passed, the Opposition does not oppose it.

Question resolved in the affirmative.

Bill read a second time.

In committee:

The bill.

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

– I move -

That sub-clause (2.) of clause 24 be left out, with a view to insert in lieu thereof the following sub-clause: - “ (2.) Notwithstanding the provisions of the last preceding sub-section, the Collector may accept a deposit of money, or a guarantee, in respect of the duty on coal to be produced during a period approved by the Collector, and removal may be made during that period, without entry, of coal the duty on which does not exceed the amount of the deposit or guarantee.”.

The effect of the amendment is to enable the Collector of Customs to accept a guarantee in respect of the duty on coal instead of making it mandatory upon him to accept a deposit of money for that purpose.

Amendment agreed to.

Bill, as amended, agreed to.

Bill reported with an amendment; report adopted.

Bill read a third time.

page 2151

RAILWAY STANDARDIZATION (SOUTH AUSTRALIA) AGREEMENT BILL 1949

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator ARMSTRONG:
Minister for Supply and’ Development · New South Wales · ALP

– I move -

That the bill be now read a second time.

This bill is presented1 to the Senate as a definite step towards the commencement of a great national effort. As honorable senators are aware, the standardization of the railways of the Commonwealth has long been the policy of this Government and the agreement with South Australia to standardize the lines in that State is a real achievement. The proposals for standardization are not new, and, indeed, as honorable senators know, as far back as 1921 a royal commission strongly recommended the standardization of the railways of the Commonwealth at an estimated cost of £57,200,000.

Unfortunately for Australia, the recommendations of the royal commission were not carried out and the cost to the Australian people of the lack of statesmanship by the governments of that time is reflected in the increased cost of the project to-day. However, in 1924 the Commonwealth Government entered into an agreement with New South Wales and Queensland for a standard line gauge linking Sydney with Brisbane. That work was completed in 1930 during the term of the Scullin Government, but there the standardization project stopped, and, as far as the transport system of the mainland was concerned, the Commonwealth consisted of five separate islands. The last war is too recent for me to remind honorable senators how easily this tragic state of affairs could have sealed the destiny of Australia. On the facts known to it, this Government resolved that this incubus on Australia’s prosperity, development and defence must be removed, and, in pursuance of that decision, Sir Harold Clapp was asked to submit a report and recommendation regarding the standardization of the railways of Australia. The Clapp report was submitted to the Minister for Transport (Mr. Ward) on the 24th March, 1945, and was presented to the Senate immediately. It was a most comprehensive report, worthy of the great railway man who compiled it. This Australian Government adopted the policy of standardization of railways, and the Minister for Transport was authorized to open negotiations with the States with a view to proceeding with this great essential national undertaking. The Senate will remember that, after frequent conferences, all States approved the principle of standardization, but, because of local influences, the States of Queensland and Western Australia withdrew from any further participation. The Minister for Transport did succeed iii having an agreement signed by the Commonwealth and the States of New South Wales, Victoria and South Australia. That agreement was the basis of the Railway Standardization Agreement Act 1946. ‘

As honorable senators are aware, that measure provided for a standardization agreement between the Commonwealth and the three States of New South Wales, Victoria and South Australia, and was for the purpose of validating the signed agreement. However, there was a provision in the agreement that it would not become operative until each party had passed the ratifying legislation through its Parliament. The Commonwealth bill ratifying the agreement was passed by the Commonwealth Parliament on the 9th August, 1946, and it received the Royal assent on the 15th August, 1946. The South Australian Government passed the required legislation . on the 5th December, 1946, and the Victorian Government passed its bill on the Sth December, 1948. The New South Wales Government did not take the expected steps to ratify the agreement, and, over the months that have passed since Victoria ratified the agreement, many efforts have been made to ascertain whether or not it proposes to introduce the necessary legislation. Many discussions on the subject have taken place between the Commonwealth and the State, including talks between the Prime Minister (Mr. Chifley) and the Premier of New South Wales, and between the Minister for Transport and the Premier and the Minister for Transport for New South Wales. The attitude taken by New South Wales was that it could not bear the financial commitment involved under the “ Commonwealththree State “ agreement, compared with the amount of standardization work that would be carried out in that State, and in those circumstances, there wa3 no prospect of New South Wales ratifying the “ Commonwealth-three State” agreement. In the interim, the South Australian Premier had represented to the Commonwealth the difficulties that his State was experiencing due to the delay in implementing the agreement, and accordingly, discussions were arranged with a view to arriving at a separate agreement with the State of South Australia. The purpose of this bill is to give effect to that decision. Parallel action is being taken by the Government in South Australia.

Very briefly, the present bill provides for precisely the same standardization work to be carried out in South Australia as would have been carried out if New South Wales had ratified the “ Commonwealththree State “ agreement. It provides also that the Commonwealth shall contribute 70 per cent., and the State of South Australia the remaining 30 per cent, of the estimated cost of £24,000,000 spread over a period of years. The Senate will agree that the Commonwealth has indeed been generous in its treatment of South Australia in this matter. I do not propose to deal in this speech with the advantages to the Commonwealth as a whole of the standardization of railway gauges. These are set out very fully in the Hansard report of the Minister’s second-reading speech on the Railway Standarization Agreement Bill 1946, which was made on the 9th August, 1946, and to which I have already referred. Action has already been taken to invite the Victorian Government to a discussion of a separate agreement with the Commonwealth, and I have no doubt that a satisfactory arrangement will be made. The Senate is aware also that discussions have taken place with the Western Australian Government, and that the Commonwealth is awaiting news of that Government’s decision on the proposals that have been advanced. It is important to recall that leading opinion from overseas supports the policy of the present Government on standardization. Recently Mr. John Elliot, chief regional officer, Southern Region, British Railways, was invited by the Victorian Government to report upon the transport systems of Victoria generally. In that report, Mr. Elliot paid special attention to the standardization of the whole of the railway systems of the Commonwealth, and strongly recommended that such a scheme should be introduced without further delay. Amongst other things, Mr. Elliot stressed the economies to be gained in the handling of traffic through the standardization of gauges and rollingstock. He also considered that, with the elimination of exchange points, economy of labour would be secured and transit of traffic remarkably speeded up. I commend this hill to the Senate.

Senator COOPER:
Leader of the Opposition · Queensland

– The purpose of this bill is mainly to standardize the railway system of South Australia. I assume that the major task will be the standardization of the main interstate line. The estimated cost of that work is £24,000,000, of which 70 per cent, is to be provided by the Commonwealth and 30 per cent, by the Government of South Australia. The Minister for Supply and Development (Senator Armstrong) “has conceded that the railway gauge standardization proposal dates back at least as far as 1921, when a royal commission reported on this project. Standardization actually started with the provision of a 4-ft. 8-J-in. gauge line from Kyogle to Brisbane, an undertaking which necessitated the bridging of the Clarence River. The construction of a standard gauge line from Port Augusta to Kalgoorlie was also part of the project. It is clear, therefore, that something had been done about the matter before this Government assumed office. It is true that, during the war, the lack of a uniform gauge line across the continent caused many transport difficulties. However, I contend that Queensland’s 3-ft. 6-in. gauge railways did a splendid job by transporting large quantities of goods, munitions and equipment and hundreds of thousands of defence personnel to the northern portions of the Commonwealth. I should like to know what the Minister meant when he said that local influences in Queensland had prevented further work on standardization in that State. The work contemplated in this measure will be carried out over a period of years. The bill does not specify any period for the completion of the work, so that it is quite possible that it may not be completed for many years. Although according to my recollection, a similar measure was introduced by the previous Labour Administration in 1946, we know that very little has been done since then towards standardizing the nation’s railway gauges. Although I am happy that the Government has agreed to undertake this work in co-operation with the State governments, I shall be much happier when work is actually commenced on the scheme. 1 need hardly remind honorable senators that the mere passage of legislation and the appropriation of money by the Parliament is not sufficient to accomplish a major national work. In conclusion, I again express my satisfaction that the Government of South Australia has co-operated with the Commonwealth Government to carry out this work, and I trust that a beginning will be made soon.

Senator TANGNEY:
WESTERN AUSTRALIA · ALP

– I congratulate, the Minister for Transport (Mr. Ward)’ on his long and arduous endeavours to reach agreement with the State governments on the standardization of railway gauges. The fact that so far only one State has agreed to co-operate with the Commonwealth Government does not indicate any lack of agreement amongst the people of Australia concerning the need to standardize railway gauges. I regret that the government of Western Australia, the State that I represent, has not. yet seen fit. to co-operate with the Commonwealth Government in this matter. Those of us who have to travel from Western. Australia to the eastern States, realize the unnecessary delay and discomfort, that is occasioned by having to change trains because of the different railway rauges in the several States, to say nothing whatever of the danger which such delay constitutes to our security in war-time. Travelling by rail from Perth to Sydney one has to change trains at Kalgoorlie, Port Pirie and Albury. In fact, more difficulty is experienced’ in crossing Australia by rail than one. experiences in travelling across the. continent of Europe^, notwithstanding- that in the course of a rail journey in Europe one has to pass through- many different countries. During the war I saw troop trains and ammunition trains being delayed sometimes for days at a time because of the need to unload and reload. It needed the outbreak of a world war to demonstrate to the people of Australia the necessity to standardize our railway gauges. Apparently, nothing less than the explosion of an atom bomb is needed to move some of our State governments from their outmoded views on this matter. Furthermore, we all realize how much money would have been saved if the scheme had been undertaken promptly by the State governments when the present Labour Government first proposed to standardize railway gauges. Since 1946, costs have already increased considerably, and they will probably continue to increase during any further delays that may occur. In conclusion, I again congratulate the Minister for Transport on having achieved the co-operation of the Government of South Australia, and I trust that it will not be long before other State governments awaken to their national responsibility in this matter.

Senator HARRIS:
WESTERN AUSTRALIA · ALP

– I congratulate the Government on the step that it has taken towards standardizing the nation’s railway systems. Notwithstanding all the discussion and agitation for standardization of railway gauges that has taken place over the years it has been left, to a Labour administration to begin the work. I recall that the construction of the railway linking Brisbane with the north coast of New South Wales was not undertaken until Labour administrations in New South Wales and Queensland determined to carry out the work, in 1924. Similarly, although proposals have been discussed for decades to harness the vast national wealth contained in the waters, of the Snowy Mountains, nothing was done to implement those proposals until, this. Government introduced its huge. £200,000,000 scheme.

Any one who has to travel by rail from Western Australia to the eastern States knows the inconveniences that, are suffered by travellers because of the breaks of gauge. For that reason, I am particularly pleased that the Minister for Transport (Mr. Ward) is. now negotiating with the. Government of Western

Australia to standardize the railway gauge between Kalgoorlie and Perth. The standardization of Australia’s railway systems will not only remove a big danger to our survival in time of war, but will also greatly benefit Australia’s economy in peace time by enabling stock and merchandise of all kinds to be transported speedily across the continent. Some years ago Sir Harold Clapp recommended that £1,500,000 should be expended on +h construction of a railway to serve the Wyndham meatworks, as part of a national plan to develop the cattle industry in Western Australia. The views which he then expressed are similar to those that are held in the United States of America and other countries which operate modern and efficient railways. In the United States of America cattle are driven on the hoof to railway sidings and slaughtered and the meat is transported in specially refrigerated freight cars to the large cities and centres of population. I commend that idea to the earnest consideration of railway authorities and pastoralists in Australia. I support the bill.

Senator CRITCHLEY:
South Australia

– I am more than pleased that the Government of South Australia has agreed to co-operate with the Government in this matter, because I believe that the agreement that has been reached between the Commonwealth Government and the Government of South Australia furnishes yet another proof of the national-mindedness of the people of South Australia. Without indulging unduly in political controversy, I commend to members of the anti-Labour parties in this Parliament the broadminded attitude of the Liberal-Country Premier of South Australia, Mr. Playford. Furthermore, I thought that the statement recently made by him in which he deplored the difficulties that are being experienced by South Australia, because of the delay in implementing the national programme for standardization of rail gauges was evidence of his sincerity. Members of the Opposition in this chamber regularly condemn, as “ socialistic enterprises “, any attempts made by the present Government to provide public utilities for the people. It is refreshing to know that their narrow views of national enterprises are not shared by the Government of South Australia. I am also delighted that during the life of the present Parliament the Minister for Transport (Mr. Ward) has been able, after years of effort, to induce the Government of at least one State to co-operate with the Commonwealth Government in this matter. It is surprising, incidentally, that the only State administration that has so far co-operated with the Commonwealth Government should be an anti-Labour administration.

Like other members of the Senate, I have had experience of the operation of railways in other countries, particularly in Canada and the United States of America, and I can, therefore, appreciate the criticism of Australian railways expressed by visitors to this country. Notwithstanding the erroneous view entertained by many people now, that the development of other means of transport, such as roads and airways, have superseded railways for passenger transportation, I firmly believe that the efficient operation of modern rolling stock over standardized gauges throughout this continent is absolutely vital to our national development. It is to the credit of the Minister for Transport that an agreement between the Commonwealth and South Australia has been signed. That will be a source of comfort to every true-thinking Australian. The breaks of gauge at Albury, Terowie and Port Pirie are a confounded nuisance to the travelling public, and are a hindrance to commerce and industry generally. Although this state of affairs has been severely criticized on many occasions, not only by railway technicians, but also by the travelling public, it has been allowed to persist for many years. The necessity for standardizing the railways of this country was brought home to Australians forcibly when the impact of war strained our resources to the utmost. I am astounded at the attitude of some of the State Premiers towards this vital subject. The time has arrived when parochialism must be cast aside in the national interest. If we continue to permit the operation of five sets of State railways and a Commonwealth railway on the mainland of Australia we shall deserve the inevitable consequences in the future. Although a considerable expenditure of public money will be necessary to standardize the railways of this country, that expenditure is fully warranted, not only from a defence point of view, but also to assist industry and commerce generally. People who are prepared to take up holdings in outback areas of this country are entitled to every consideration. Although the agreement between the Commonwealth and South Australia has been signed some people will complain that a lengthy period of time will elapse before the work will be completed. I admit readily that there are factors operating to-day that will preclude the work being carried out as expeditiously as we should like. I point out, however, that during the war period, because of the different railway gauges in this country many sad and sorry spectacles were witnessed. As Senator Tangney has mentioned, there was considerable inconvenience and delay in the transport of troops and munitions during the war. Stores and equipment had to be handled several times. I commend the Government for its foresight in this matter.

Some people have suggested that preliminary steps have not yet been embarked upon in South Australia. In the South Australian Parliament recently a member asked when thi9 work would be commenced. The Minister for Railways in that State replied that that depended on the availability of labour and materials. He gave an assurance, however, that preliminary surveys were already being undertaken. The State railway authorities have wisely provided for the conversion to 5-ft. 3-in. gauge of the 3-ft. 6-in. gauge railway line between Wolseley and Mount Gambier. About one-third of this job has been completed. No difficulties will be encountered in converting that line from 5-ft. 3-in. to the standard gauge. I am disgusted at the continued delay in commencing the standardization of railways in this country. I trust that before long a unified method of control of both rail and road transport will be achieved in Australia.

Senator SHEEHAN:
Victoria

– I congratulate the Minister for Trans port (Mr. Ward) on finalizing the agreement between the Commonwealth and South Australia to standardize railways. Almost 50 years have elapsed since federation was achieved in this country. The many great happenings during that period have proved that this country has developed into nationhood. In effect the signing of this agreement has placed the coping stone upon that achievement. Another major event within the last fortnight was the launching of the Snowy Mountains hydro-electric scheme. Both of these undertakings will have a marked effect on the future development of Australia. Having been associated with the railways system of Victoria for many years, I am a consistent advocate of the standardization of gauges. I am very pleased that the Victorian Minister of Transport, Mr. Kent Hughes, visited Canberra yesterday to discuss the part that Victoria might play in the near future in connexion with the standardization scheme. I subscribe to the views that have been expressed by Senator Critchley and other honorable senators about the advantages of standardization. The disadvantages that affect a nation in which railway gauges vary are readily apparent. One would think that Australia consisted of six different nations, whose citizens spoke different tongues and which had practically no commercial intercourse. One of the first steps towards the breaking down of interstate parochialism was taken when the trans-Australia railway line from Port Augusta to Kalgoorlie was constructed by a Commonwealth Government. There was considerable controversy about the most suitable guage for that line, but the final choice was the 4-ft. 8^-in. standard. I congratulate the Government in the confident belief that honorable senators will pass the bill unanimously. I hope that other States will soon enter into arrangements for the standardization of gauges. I realize that shortages of labour and materials restrict the chances of proceeding with standardization throughout the continent, but I hope that the work will be undertaken as early as possible. It is regrettable that anti-Labour governments lacked the vision to undertake standardization in the days when materials and labour were plentiful, ‘but I am glad that this Government has the courage to engage in this important project, which will have a great bearing upon the future development of the nation.

Senator CLOTHIER:
Western Australia

– I cannot allow this occasion to pass without saying a few words in favour of the standardization of railway gauges. As the senior representative of Western Australia in this chamber, I can justly claim that I have not left a stone unturned during the past twelve years in order to hasten the standardization of gauges. Although the people of the mainland of Australia belong to one Commonwealth they are separated into five distinct communities, just as though they lived on different islands. They suffer from all the disabilities of separate communities. Interstate jealousy is rife. That state of affairs must be remedied as quickly as possible in the interests of the entire nation. Unless railway gauges are standardized, air travel will cripple the railways services. Passengers and goods will be transported almost exclusively by air. It ought to be possible for travellers to go from one side of the continent to the other without changing trains. Under present conditions, thousands of people use the air services in preference to railways for their own transportation and for. the carriage of light parcels. The present system of rail travel imposes inconveniences which discourage most people from using trains. I support the bill wholeheartedly, and I hope that the Western Australian Government will soon come to its senses and realize that the standardization of railway gauges is vital to Australia.

Senator KATZ:
Victoria

.- In discussing this bill I shall deal only with the subject of finance. The measure provides that the Australian Government shall pay more than two-thirds of the amount to be expended upon the standardization project which it will authorize. Honorable senators must acknowledge that the Premier of South Australia is sufficiently far-sighted to realize that, no matter what the bill provides in relation to finance, the Australian Government eventually will have to pay the entire cost. Consider the method of finance under which the States operate to-day. If the South Australian Government has a deficit of £3,000,000, £4,000,000 or £5,000,000 at the end of the financial year, the Commonwealth will be required to foot the bill.

Senator Critchley:

– It is not different from any other State in that respect.

Senator KATZ:

– That is true. However, I emphasize the fact that the Premier of South Australia has sufficient intelligence to realize that the cost of this standardization project will not be charged against the people of his State. The blindness of the Victorian Government in this respect is amazing. I cannot understand why it has not fallen into line with South Australia. Surely it must realize that the cost of standardization must he -borne by the Commonwealth eventually.

Senator O’FLAHERTY:
South Australia

– I regret that the Government is experiencing great difficulty in securing the co-operation of Victoria, Western Australia and Queensland in the implementation of its plan for the standardization of railway gauges. The bill now before the Senate contemplates the alteration of railway gauges in South Australia, particularly in the northern area of the State between Port Pirie and Broken Hill, from the present 3-ft. 6-in. gauge to the 4-ft. 8-i-in. gauge. This scheme will necessitate special action in connexion with the Silverton tramway between Cockburn and Broken Hill, but I believe that the difficulties involved can be overcome with the aid of the Government of New South Wales. The completion of the undertaking will provide a standard 4-ft. 8^-in. gauge from Sydney through Broken Hill to Port Pirie, from where a line of the same gauge proceeds direct to Kalgoorlie. I am hopeful that it will be possible for this Government to make an agreement with the Government of New South Wales for an extension of its 4-ft. 8£-in. gauge system from Hay, in the western district of New South Wales, across the river Murray to ‘Ouyen. That would provide an alternative route which would be supplementary to transport on the river Murray. That would be a great advantage bearing in mind the increased production that must result from the expansion of the irrigation areas in the Murray valley. Thus, there would be two standard gauge connexions from east to west. Perhaps, the better of the two routes would be that from Hay to Ouyen and thence to Adelaide. Through the new network thus provided the production of the irrigation areas in the Murray valley could be moved directly by rail to Sydney, Melbourne, Adelaide and Western Australia. That would he all to the good because as the result of the expansion of the irrigation areas- producers along the river Murray will be looking for additional markets. The Minister might study those aspects. Perhaps, they could prove the means of persuading the Victorian Government to enter into this scheme on a national basis.

Senator ARMSTRONG:
Minister for Supply and Development · New South Wales · ALP

in reply - I express my thanks to honorable senators for the support that they have given to the bill. The Leader of the Opposition (Senator Cooper) asked whether the whole or only part of the railway system of South Australia is to be standardized. I inform him that the whole of that system is to be standardized.

Question resolved in the affirmative.

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

page 2158

EXCISE TARIFF BILL (No. 2) 1949

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 WalesMinister for Shipping and Fuel · ALP

– I move -

That the bill be now read a second time.

The tariff schedule to which this bill relates was introduced on the 20th October, 1949. The purpose of the bill is to impose, as on and from the 1st November, 1949, an excise duty of six pence a ton on certain coal mined in Australia. Honorable senators are already aware of the Government’s plans in relation to the grant of long-service leave to miners and the funds necessary to meet that scheme will be provided by the duty now being imposed on coal. The departmental by-law to be issued under this new excise item will prescribe that the duty shall apply to all coal mined in Australia other than coal the property of a State or brown coal produced by opencut methods.

Senator COOPER:
Leader of the Opposition · Queensland

– As this measure is purely a machinery measure, the Opposition does not oppose it.

Question resolved in the affirmative.

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

page 2158

COMMONWEALTH CONCILIATION AND ARBITRATION BILL (No. 2) 1949

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator McKENNA:
TasmaniaMinister for Health and Minister for Social Services · ALP

– I move -

That the bill be now read a second time.

By section 25 of the Commonwealth Conciliation and Arbitration Act the court may, for the purpose of preventing or settling an industrial dispute, make an order or award dealing with certain fundamental questions, that is to say - (a) altering the standard hours of work in an industry, (b) altering the basic wage or the principles upon which it is computed ; (c) altering the period which shall be granted as annual leave with pay; or (d) determining or altering the minimum rate of remuneration for adult females in an industry.

Section 13 of the act prohibits a conciliation commissioner from dealing with the matters that are referred to in section 25, which are exclusively reserved for the full court.

At the present time there are applications before the full court relating to the basic wage generally - that is, the basic wage for adult males - and to a large number- of disputes concerning the female minimum rate. In the course of the hearing of evidence on those applications, discussion occurred as to the precise meaning and application of the phrase “ the minimum rate of remuneration for adult females in an industry “. Varying opinions as to the meaning and scope of that phrase were expressed by the members of the court, and consequently, a few weeks ago, the court publicly asked that Parliament should clarify the position.

The purpose of this bill is to make it clear that in fixing the minimum rates for women the function of the full court is to perform in relation to women precisely the same judicial function as it does in the case of adult males. The principle is quite clear. It is that the full court will deal only with the fundamental or basic matters of the kind indicated in section 25. The hill will bring the procedure relating to the adult female basic wage and female margins into line with the method of fixing the basic wage and marginal rates for males. In each case the court will fix the basic wage, the appropriate conciliation commissioner determining the margins. Of course, the basic wage applies to the adult working under normal conditions, and it does not take into account matters that are dealt with by way of margins, such as skill or some special addition which is thought just in the particular classification. The female basic wage has become of far greater importance because of the claim by women workers generally that the wage should be fixed on a basis of equality with men - “ equal pay for equal work “. Under this amending legislation the court will be at perfect liberty, if it wishes, to fix the wage upon that footing of complete equality. However, the court can fix the female wage at a percentage of the male rate or by reference to a specific sum, variable from quarter to quarter as the adult male basic wage is to-day. The court will have a free hand. All that the Parliament can do is to give the jurisdiction in this case to the court and the commissioners and between them they will settle .all industrial disputes.

The measure will give the Commonwealth Arbitration Court the same power to declare an irreducible minimum rate for’ adult males. The bill makes it abundantly clear that the court has power to do as I have said and that its duty i3 to. do so. The minimum rate for males will be called “ the basic wage for adult males “ and that for women will be called “ the basic wage for adult females “. No conciliation commissioner will be permitted to fix a wage below those figures. He may fix either of those rates if he thinks that no skill is required in a particular occupation, but he cannot fix a lower figure. I want honorable senators also to understand that the provisions of the bill will apply to the proceedings at present before the court.

Debate (on motion by Senator O’sullivan) adjourned.

*Sitting suspended from 5.58 to 8 p.m**

page 2159

ELECTORAL

General Election Dates

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

- by leave - I desire to inform honorable senators that the Prime Minister (Mr. Chifley) has advised His Excellency the Governor-General that the House of Representatives should be dissolved on the 31st October, and that, prior to its rising, Parliament would pass the necessary legislation required to carry on the services of the Government until the new Parliament assembles. His Excellency has been pleased to accept the Prime Minister’s advice. The writs for the forthcoming election will be issued on Monday, the 31st October, and the closing date for nominations will be Monday, the 14th November. The writs will be returnable on or before Wednesday, the 25th January, 1950. As honorable senators no doubt know, polling day for the election of members of the House of Representatives will be Saturday, the 10th December, and at the Prime Minister’s request His Excellency the GovernorGeneral has been good enough to invite the State Governors to adopt the same dates as the Commonwealth for the Senate elections.

page 2160

COMMONWEALTH CONCILIATION AND ARBITRATION BILL (No. 2) 1949

Second Reading

Debate resumed.

Senator O’SULLIVAN:
Queensland

– This bill, has been introduced in order to declare that the Commonwealth Court of Conciliation and Arbitration shall be empowered to determine a basic wage for adult females, and for purposes related thereto. I suppose no more vital issue confronts the Government and the people of Australia than the relationship between employers and employees. The remarks that I have to make are not made in a critical or carping spirit, and I think that on this occasion even the Government will agree with me that there is room for infinite improvement in the relationship between employers and employees. Upon the establishment of a happier relationship will depend increased production and the arrest of the spiralling cost of living, which must be a nightmare to the people at the present time. I am not at the moment attempting to apportion the responsibility for the lack of harmony which notoriously exists to-day.

The Court of Conciliation and Arbitration was devised to smooth out the differences that arise from time to time between employers and employees. It fell to the lot of an earlier administration, which, incidentally, was neither a Labour nor a Liberal administration, so to comport itself that a judge of the Commonwealth Arbitration Court felt obliged to resign his office as a protest against the political direction which was sought to be exercised over the court because he believed that such interference would impair its efficiency and destroy the real purpose of its establishment. He felt that the court was no longer capable of fulfilling the purpose for which it had been established.

Senator Sheehan:

– Who was that?

Senator O’SULLIVAN:

– The late Mr. Justice Higgins. The relationship between employers and employees at the best of times, when it is not disturbed by any paltry or mean motive, presents great difficulty to those whose duty it is to arrive at a common formula whereby the production of the country may proceed smoothly and happily. I place much more importance upon the function of conciliation than upon the court’s other function of arbitration. I understand that two reports have been submitted by successive chief judges of that court, one by the late Mr. Justice Drake-Brockman and the other by the present Chief Judge, Mr. Justice Kelly. So far as I know, the Government has not indicated its reaction to the recommendations made by the chief judges, who have had a rich experience in the handling of disputations between, employer and employee. I therefore urge the Government to give serious consideration to those reports and recommendations and to inform the Parliament of its opinion of those recommendations: After all, those reports were submitted by experts in that particular field.

Whilst I understand that the present measure is not intended to cover the whole gamut of industrial relationships, but is designed to deal only with the determination of a basic wage for females, I urge the Government to confine the jurisdiction of the conciliation commissioners to conciliation and not to permit them to arbitrate. Arbitration should be resorted to only after conciliation has been exhausted. There are sixteen conciliation commissioners to deal with our industries, and although those industries differ somewhat, the basic conditions of the employees in relation to arduousness of work and hours of duty upon which the special margin of pay 19 determined for each industry are probably parallel in many respects. Yet it is quite conceivable that sixteen varying rates of pay may be awarded for similar work in as many industries. It was in protest against such an occurrence, which would result in a confusion of awards of pay and conditions that would defeat the whole objective of the arbitration system, that the late Mr. Justice Higgins resigned his high position. Upon his resignation he made a very dignified and powerful protest to the Government of the day. I am not looking into the realm of disputes at present. I am quite prepared to concede that the Government is as anxious as I am to see peace preserved in industry. The suggestion that

I have made aims at that objective. I trust that the Government will receive it in the spirit in which it has been advanced. I contend that peace in industry is more likely to be created and to be maintained if there is uniformity in the awards covering the various industries. At present there are sixteen conciliation commissioners. I do not criticize their capacity because -I believe them to be men of substantial practical experience in the various aspects of industrial life. By virtue of their training they are probably better equipped than are judges or justices in the realm of conciliation, because they have had personal experience of the industries in regard to which they attempt to effect conciliation. If, unfortunately, conciliation fails, let the dispute go to the arbitration court, which is a court of continuity, a court of record. Then there will not be any anomalies, because the same court will deal with all disputes wherever arising, and regardless of their cause, or source. At least we will have uniformity and the court will be able to inform itself as to what has happened throughout its experience. If we have sixteen different conciliation commissioners clothed with authority which properly should be exercised by the arbitration court we must inevitably have chaos. I am very strongly in favour of continuing the functions of conciliation commissioners, but as conciliation commissioners only. They should not have authority in regard to the fixation of hours, wages and conditions, and in connexion with the determination of marginal rates. In leaving these thoughts with the Government I trust that it will give further consideration to the matter and draw a clear line between the functions of conciliation and the functions of arbitration. If we continue along the line that has been adopted lately we will have a complete babble of confusion and anomalies, and we will not be contributing towards that peace in industry which both the Government and the Opposition desire, and which the people of Australia must have.

Senator SHEEHAN:
Victoria

Senator O’Sullivan has taken advantage of the measure before the chamber to make an attack upon the Commonwealth Conciliation and Arbitration Act 1947, under which are appointed certain conciliation commissioners. The honorable senator has suggested that their activities should be confined to conciliation. The measure being debated provides for the performance of a specific duty by the court, that is, to fix an adult female basic wage. Prom my experience in the industrial movement of this country, I say that it is very difficult to determine where conciliation ends and arbitration begins. If there is an industrial dispute the parties are called together for talks, and finally a decision is made. In his second-reading speech the Minister for Health (Senator McKenna) clearly stated the duties that the court will be called upon to perform. They are very important. Conciliation commissioners cannot alter the standard hours worked in industry, the basic wage, or the principle upon which it is computed. They cannot vary the period of annual leave with pay that shall he granted’, or determine or alter the rates of remuneration for adults in industry. That is the new provision provided in this measure. When the question whether conciliation commissioners should exercise the power of determining the basic wage was discussed, it was held that they did not have that power. There are a hundred and one phases of industry which involve the payment of remuneration in excess of the basic wage.

Senator O’Sullivan:

– Why not have one court to do it instead of sixteen conciliation commissioners ?

Senator SHEEHAN:

– How could one court deal with all of the ramifications of an industry? It was because of that factor that the Government appointed conciliation commissioners. In the past it has been found that although only, a modest demand may have been made upon an employer in the first instance, if a delay was occasioned the workers in that industry became resentful and frequently threatened to take industrial action in order to expedite the hearing of their claim. In some instances claims have been before the arbitration court for years. I recall that a railways union had a claim before the late Sir John Quick in the Commonwealth Arbitration

Court for from four to five years. It was not finally dealt with. Many phases of the work of a railwayman were not dealt with. It is entirely impossible for judges in the court to deal with all of the matters that from time to time cause dissension in industry. There will not be fifteen or sixteen people making fifteen or sixteen different awards.

Senator O’sullivan:

– But that has happened’.

Senator SHEEHAN:

– The present practice is that a conciliation commissioner appointed to a particular industry makes his awards covering that industry. He deals with all of the various phases of that industry. It may be that a man is working in a confined space, under dirty conditions, or in a place where there is heat, such as in toilers. All of those conditions have to *be taken into consideration. They all involve an increase of the margin above the basic wage. The conciliation commissioner may grant a margin for skill or “responsibility, or for some other reason. Interference in the manner desired by Senator O’sullivan would destroy the effectiveness of ‘the present arbitration system. I have glanced briefly through the report that has been mentioned. In that report I consider that the judge complimented the conciliation commissioners because they had applied themselves with intelligence to the task allotted to them. To interfere with the system now in operation would be a retrograde step. Instead of industrial peace being maintained there would be a considerable amount of industrial discord. I hope that the Government will not take cognisance of the suggestion that has been advanced by Senator O’sullivan.

Senator O’FLAHERTY:
South Australia

– I support the bill. I appreciate the suggestions that have been made , by Senator O’sullivan. Anybody who has made a serious study of arbitration knows that every suggestion made for the improvement of the system is worthy of consideration, whether it comes from the employees or the employers. However, Senator O’sullivan should not have made general statements; he should have supplied detailed information to support his proposals. The .arrangements that he has proposed have already been tried in Australia. We began- with a single Arbitration Court judge. Later several judges were appointed with a chief judge. As Senator Sheehan has pointed out, the delays in dealing with claims under that system were so great that industrial chaos resulted. That was not due to the incompetence of the court; it occurred simply because the court could not possibly deal expeditiously with all of the applications that were submitted to it by employees and employers. Later still, conciliation commissioners were appointed without powers of arbitration. If the parties to a dispute failed to reach agreement in conference with a conciliation commissioner, the only course open to the commissioner was to report upon the facts to the judge who had directed him to call the parties together. He had no power to make any award.

Senator O’sullivan:

– Those officers were only conciliators, not arbiters.

Senator O’FLAHERTY:

– That is so. Upon receipt of a commissioner’s report, a judge might make an interim award embodying the principle upon which agreement had been reached but leaving other, and perhaps vital, questions for determination at a later date.

Senator O’sullivan:

– Would they be questions of law?

Senator O’FLAHERTY:

– No. They would be matters affecting rates of pay and conditions of employment. As the result of that system, there were interminable disputes throughout Australia over matters upon which decisions had not been given by a judge and which could not be resolved by commissioners.

Senator O’Sullivan:

– Those would be matters in which the commissioners had failed to effect conciliation.

Senator O’FLAHERTY:

– Yes. Interim awards would cover matters upon which the parties had reached agreement, but disputes would arise continually because they did not cover all of the issues involved. . As the result of that condition, the Labour Government adopted the principle of appointing conciliation commissioners with certain powers of arbitration as well as conciliation.

Since that system has been in full operation, industrial disturbances have been less frequent than at any other period, of Australia’s history. That is simply due to the fact that conciliation commissioners are now empowered to make decisions upon matters that are the subject of disagreement between parties. Under this system there are no delays such as occurred under the old system, and we have achieved a condition of near peace in industry. Under the old system, an applicant party would file its claim in the Arbitration Court by serving summonses upon the respondent parties. Later, perhaps a few months or a few years later, it would receive a notification from the Registrar of the court that the case would be heard. Throughout the period of waiting, the applicant party would have to urge the Registrar to expedite the hearing of the claim. Employees and employers became sick and tired of the delays, and stoppages were frequently called in an effort to force the court to set other cases aside and hear claims expeditiously. Great upheavals occurred in consequence. Those disabilities have been overcome under the present system. Senator O’sullivan said by interjection during Senator Sheehan’s speech that conciliation commissioners were making sixteen different awards covering one particular class of employee.

Senator O’sullivan:

– Comparable workers.

Senator O’FLAHERTY:

– Yes. Senator O’sullivan may think that it is all right to make statements of that kind. I do not want to disbelieve him, but he has not substantiated his claim. I have had a great dealt to do with arbitration proceedings ever since industrial arbitration was established not only in the federal sphere but also in the State sphere in South Australia. I was a member of the original committee that drafted the industrial code and factories legislation in that State-

Senator O’sullivan:

– My statement is supported by the report presented by the Chief Judge to the Parliament.

Senator O’FLAHERTY:

– The Chief Judge did not say that what the honorable senator claimed was actually happening. He, more or less, suggested ways and means by which such circum stances could be obviated. I endorse the Chief Judge’s statements in that respect. I have been associated with him and I take much notice of any statement that he makes with respect to the working of the arbitration system.

Senator O’sullivan. - I base my statement on the report furnished by the late Chief Judge Drake-Brockman

Senator O’FLAHERTY:

– With all respect to the late Chief Judge, I believe that when he presented his report the present system of conciliation commissioners had not been in operation for a sufficiently long period to overcome the difficulties that naturally arose during the transition from the old to the new system. I do not think that the honorable senator will find anything in the report furnished by Chief Judge Kelly that would substantiate his claim. Sincethe late Chief Judge Drake-Brockman presented his report the chief conciliation commissioner has laid down certain principles for the purpose of coordinating the decisions of the conciliation commissioners throughout the Commonwealth.

Senator O’sullivan:

– But their powers are limited in that respect.

Senator O’FLAHERTY:

– They possess the requisite power. For example, as Senator Sheehan has pointed out, a man who is working in a particular sphere in a certain industry may be classified, say, as a second-grade carpenter, and may be awarded a higher margin than a man classified as a secondgrade carpenter who is employed in a comparable industry. I merely put that by way of illustration because there is no such thing as a second-grade carpenter. However, the reason for the differentiation between the margins paid to the two men may be that the first is engaged on a dirty class of work whereas the other may be engaged on comparatively clean work.

For many years female workers have been endeavouring to obtain access to the arbitration tribunals in both the State and Federal spheres. After they attained’ that objective a minimum wage as distinct from a basic wage was prescribed for female workers, just as at one time a minimum as distinct from a basic- wage was; prescribed for male employees. Later, a basic wage was prescribed for males and the principle was laid down that a wage less than that could not be prescribed in any industrial award. However, industrial arbitration legislation throughout the States and also in the federal sphere makes special provision for the payment of a lower wage in special cases, for instance, in respect of a slow worker or an old worker, and reference hoards have been set up to determine those matters. In some instances the chairman of such boards may be the registrar of the court, or a person nominated by the Chief Judge or any of the judges of the court. In respect of some of the determinations of those hoards only the permission of the trade union concerned is required to enable a wage less than the basic wage to be paid. At the same time, provision is made for the payment of margins above the basic wage as, for instance, in respect of special skill.

A basic wage has never been prescribed for women in the federal sphere. The minimum wage prescribed for female workers has been as low as 51 per cent, of the male rate. Later it was increased to 54 per cent, and under National Security Regulations passed during the recent war it was increased to 75 per cent, of the male rate. Those regulations also prescibed that any female who took the place of a male in industry must be paid the rate that was paid to the male. Those regulations were implemented by the Women’s Employment Board, of which Judge Foster was chairman. However, the judges of the Arbitration Court in a case now before them have expressed conflicting opinions whether- the court has power to prescribe a minimum wage for female workers and this measure has been introduced to clarify that position as the result of suggestions made by those members of the court who are of opinion that the court does not possess that power. This measure provides that the court shall have power to declare a basic wage for female workers, and it gives the court authority to prescribe variations of it in accordance with changes in the cost of living as it does in respect of the basic wage for males.

Once the court prescribes a basic wage for females a lower wage cannot be prescribed in any award that may be issued either by the court or by Conciliation Commissioners. .Such a provision is only fair and reasonable. Various basic wages are prescribed for males in the different States. In South Australia a basic wage was prescribed for females at the rate of 48 per cent, of the male rate. Later, it was raised to 51 per cent, of the male, and subsequently it was reduced to 49 per cent, of the male rate. At the same time, provision was made for the payment of margins above the base rate in respect of skill, but no award could prescribe a basic wage for females less than that prescribed by the court. That is all that thi3 measure seeks to achieve. I believe that I have answered the suggestion made by Senator O’Sullivan. I repeat that he has not substantiated his statements. Therefore, I can see no reason why we should revert to the old system. We want to maintain the peace that has been established in industry under the present system which, I. am sure, employers as well as employees believe to be better than the old system because its machinery can be invoked quickly to prevent industrial disputes from occurring.

Senator TANGNEY:
Western Australia

– I cannot allow this occasion to pass without raising my voice, first So congratulate the Government upon the introduction of this measure, and, secondly, to express my thanks, and those of my fellow women, to Senator O’Flaherty for his championing of our cause. This bill empowers the Commonwealth Court of Conciliation and Arbitration to determine a basic wage for adult females. For a long time, women have been seeking a provision of this kind to put their work in the industrial field on a proper footing. During the war, women entered many branches of industry from which they had previously been excluded, and the Commonwealth Government gave a lead by insisting upon equal pay in those jobs in which women replaced men. In other industries, female wages were specified as a percentage of the male rate. It is rather an indictment that the only industry in which women to-day receive the same pay as men is in the liquor trade. Barmen and barmaids receive the same wages. In the professional field, there is no discrimination against women except those employed as doctors or chemists in governmental or semi-governmental institutions. Recently my attention was drawn to the fact that the Department of External Territories had advertised for’ a parasitologist for New Guinea. The advertisement, which appeared in all metropolitan newspapers, made no mention of discrimination against women. However, when a young Sydney scientist received the appointment because of her qualifications she was informed immediately that, as she was a woman, her salary would be £100 a. year less than that advertised. Quite rightly, the woman refused to accept the position. She communicated with me immediately, and I took the matter up with the Minister acting for the Minister for External Territories. Within a few days I received a telegram from the Minister stating that the woman had been appointed at the advertised rate and that there would be no discrimination against her. That result gave me great satisfaction. It was also a source of satisfaction to many women working in professions and industries throughout the Commonwealth. At present, considerable research is being carried out into the proposition that there should be equal pay for equal work. We contend that there should not be any discrimination, against women, and I realize that consideration has to be given to certain factors which do not appear on the surface. Equal pay for equal work would involve a complete re-organization of our basic wage and social systems. For instance, provision would have to be made for family allowances such as those now paid in other countries. However, I believe that it would be well worth while to investigate the effect on industry of the introduction of the principle of equal pay for equal work, together with provision for family allowances to be paid from governmental or other funds. It is a big problem, but we, as women, are not prepared to countenance the exploitation of cheap labour. The Labour movement itself will not stand for that. We do not want to see men thrown out of work as they were during the depression to make way for cheap female labour. During those years, many husbands who had lost their jobs, had to sit at home and look after their families whilst their wives went out to do poorly paid jobs. That must not happen again. Jobs must be given to those who are best able to do them, whether they be men or women. I realize that that principle is not implicit in this measure, but the granting by the Australian Government of power to the Commonwealth Arbitration Court to declare a female basic wage is a step in the right direction. Therefore, I support the bill.

Senator KATZ:
Victoria

.- When this measure becomes law, the only function of the conciliation commissioners will be to determine margins for skill over and above the basic wage fixed by the Commonwealth Arbitration Court. I was impressed by Senator Tangney’s plea on behalf of members of her sex, but I point out that it will be impossible to secure a basic wage for women unless they band together in industrial organizations. The fact that women have not been able to secure a basic wage in the past has been due entirely to the impossibility of organizing women workers. In the course of the present basic wage hearing women have given evidence on the cost of living. For more than twenty years, I w.as a federal officer of a clerical organization, membership of which consisted largely of women, and I know the great fight that was waged for equal pay for the sexes. That is one of Labour’s fundamental principles. One of our most difficult tasks was to convince female clerical workers and stenographers of the necessity to join the clerical organization. In Australian industry to-day, the only basic wages that exist have been obtained by the trade union movement. Women in industry will have to take the same course. I well remember that on one occasion about 30 years ago a State wages board actually made a determination specifying equal pay for the sexes in the clerical profession. However, the matter was brought before the Appeals Court, presided over by the late Mr. Justice Cussen, who upset the award. Strange to relate, the people most responsible for that decision were women who gave evidence that they should not receive the same pay as males. We have had an uphill struggle over the years. This bill is simply the result of the Government heeding the demand of the industrial movement for the protection of workers. When the measure becomes law, the conciliation commissioners will not have power to fix the basic wage for females in various industries. They will have to accept the basic wage fixed by the Arbitration Court, and to add to it appropriate margins for skill, determined on the evidence that is put before them. I believe, therefore, that this measure is most timely. It is an attempt by the Government to protect women workers in all branches of industry that come within the province of the Commonwealth Arbitration Court.

Senator McKENNA:
TasmaniaMinister for Health and Minister for Social Services · ALP

in reply - I think that the Senate will agree that we have been favoured by five very thoughtful contributions on the subjectmatter of this bill. I thought that Senator O’sullivan made a completely objective approach to the bill and its purpose, pointing to evils and dangers, apportioning blame to nobody, but seeking, as we all genuinely seek, for some solution of the problems that confront us. I say immediately that it is very difficult to find a solution while our industrial powers at the legislative level are severed as they are at present. I think that one of the root causes of our difficulties is that the National Parliament has power over industrial matters only when interstate disputes arise. The mere existence of that constitutional restriction impels workers to create disputes and to extend them interstate in order that they may enjoy the right to approach the Commonwealth Arbitration Court. Looking ahead somewhat and speaking, not on this occasion as a spokesman for the Government, but as something of a prophet in the industrial world, I say that while some men working in an establishment are regulated’ in their wages and conditions by a State award, and others working alongside them have their conditions regulated by a Commonwealth award, it is inevitable that anomalies and disturbances will arise. Apart from the fact that the people should confer upon the National Parliament constitutional power to legislate for the terms and con ditions of employment in industry, we shall never attain industrial peace until that power is conferred upon the Commonwealth. We approached the people and put it to them that the National Parliament should have the power to determine wages and hours and conditions in industry throughout Australia, but the people decided, by a narrow majority, against that proposal. However, it may well be that on some future occasion the people will realize the difficulties associated with the present system.

Senator O’SULLIVAN:
QUEENSLAND · LP

– If they were * asked for both powers on the same occasion they might give them to us.

Senator McKENNA:

– If the people were again approached, and if those who represent the political parties, realizing the evils that confront the nation, would only treat the matter as objectively as it has been treated in this debate, and combine their forces to educate the people to the need for some remedial measure, then we might achieve some progress in the direction that I have indicated. However, it is unfortunately true that referendums seeking to confer additional powers upon this Parliament have invariably been made the subject of political football. That is a serious obstacle to the progress of this country towards true nationhood. In the event of our not being able to obtain the constitutional power that I have indicated there is an alternative, and that is that tribunals of arbitration and conciliation should be established that will be armed with power from both the Commonwealth and State parliaments. That is the only other way in which uniformity can be achieved.

Senator O’sullivan:

– It would need to be a common act by the six States.

Senator McKENNA:
TASMANIA · ALP

– And the Commonwealth would, of course need to join in that act. However, we are moving in that direction. I have just pointed out to the Senate that the Commonwealth Government and the Government of New South Wales have successfully combined to regulate the production and distribution of coal by establishing the Joint Coal Board. We have begun to establish a system of national tribunals. Further.more. the operations of the Joint Coal

Board have recently been extended to embrace Tasmania, whose Parliament passed special legislation to bring its coal industry within the ambit of the board’s control so that Tasmania can join with the Commonwealth and New South Wales in the production and distribution of coal. I feel that our best hope of progress lies in encouraging the tendency towards cooperation between the States, and between the States and the Commonwealth. I believe that it will lead towards the ultimate objective to which I have already referred, namely, the establishment of tribunals vested with plenary powers to the limit of the Constitutions of the Commonwealth of Australia and the States. Honorable senators will remember the protracted dispute which arose over the Kemira tunnel, and that the division of constitutional powers between the Parliaments of the Commonwealth and New South Wales prevented either government from taking effective action independently. Indeed, each found that it was quite futile to deal with the matter, and complementary legislation had to be enacted. Honorable senators will remember the special legislation that had to be passed by this Parliament to settle the dispute.

Senator O’Sullivan made a plea foi better relations between both sides in industry in the hope that the establishment of better relations would improve production and preserve peace in the industrial world. In that hope, the Government whole-heartedly supports him. The Government has done its utmost to promote industrial peace. It has convened special conferences in the hope of evolving some formula to eliminate the forces of disruption from industry. Of course, all kinds of difficulties have to be faced. Some of those difficulties are, unhappily, merely factors that are inherent in human nature. The very fact that the country to-day enjoys full employment has a tendency to breed a degree of irresponsibility in the worker and in some of his organizations. Fortunately that tendency is receding. We had a good example recently of the decline of the power of the forces of disruption during the disastrous coal strike, when the organized trade union movement, including the Trades and Labour Councils of

New South Wales and Victoria, and the Australian Council of Trades Unions and, later, the all-Australia Trade Union Congress, affirmed and. upheld the steps that the Government had been obliged to take to resist the irresponsible element in the trade union movement. Let me say now that I doubt whether the Government would ever have succeeded in settling the dispute and restoring order had it not been for the full support given to it by the organized trade union movement.

Senator O’Sullivan:

– I have great confidence in the sanity of our people.

Senator McKENNA:

– Yes, I quite agree with the honorable senator, and I think that he can .take hope from the present signs. If he has observed not only the phenomena to which I have referred, but has also noticed the tendency in recent trade union elections he will have observed that whereas a short time ago Communists were prevailing in union elections, the proportion of votes that they have obtained in recent elections has declined by at least a quarter. That is one of the effects of the legislation that was recently passed by the Parliament to establish machinery to ensure that irregularities and malpractices in the conduct of the union ballots and elections shall be visited with heavy punishment. Very severe penalties, indeed, were provided in that legislation. The mere fact that those severe penalties exist has had a very salutary effect upon certain people who need a salutary lesson. Moreover, many applications arising from that legislation are being heard by the courts at present and I am prepared to say that the trade union movement is rapidly developing a real sense of responsibility under its own momentum, and in the realization of the danger that irresponsibility causes to everybody in the trade union field, as well as to the community generally. Another factor that has militated against the attainment of industrial peace not only in Australia, but also throughout the world, is the demoralization brought about by the recent world war. As we all know war breeds demoralization of all kinds. War demoralizes every country that engages in it. The honorable senator appreciates that there was a large removal of parental control while fathers were at the war. There was a lot of quick and “ hot “ money to be obtained at the height of the war period, when there was an influx of people with a high spending capacity. There were unreal values here, which cannot be eliminated from the community in a moment or even in a year. Likewise irresponsibility in the trade union movement is diminishing and dwindling with the passage of time. There can be no fast approach to reconciling all parties in industry, and there cannot be allocation of blame to one side only. There are many employers who are completely thoughtless of their employees, and who never think of providing amenities until the competition for labour forces them to do so. Even to-day many employers regard their employees as mere units of production. They do not see them as human beings at all. They do not see them as people possessing the dignity of human beings, or as people with a perfect appreciation of the fact that their work is essential, and that they want to feel that in doing their work they are playing an essential part in the community ; that their lives are worth while to the community, and that their work enables them to make a useful contribution to the community. Those things are as important to those human beings as is the money that they receive. Plenty of employers to-day have no sympathy with their employees.

Senator O’sullivan:

– Only some of them.

Senator McKENNA:
TASMANIA · ALP

– I am not emphasizing where the balance of blame lies. I have pointed out the defects in the trade union movement which are being corrected, and a few on the other side. Unfortunately the factors that I have indicated still prevail. I agree with the honorable senator that anything that anybody in Parliament can do to further better relations should be done. If the employers will take more interest to ensure that their’, employees understand the processes of management ; if they are prepared to give them a say in management; if they are prepared to look sympathetically at the yearning of the workers as a body to have some greater participation in the fruits, of their labour, the sooner we shall approach, the day when industrial peace shall prevail in the land. I agree with Senator O’Flaherty that there is far less industrial unrest in this country now than ever before. The Commonwealth Conciliation and Arbitration Act 1947 introduced a revolutionary step. It took power away from the court and gave it to the conciliation commissioners. That was a very bold step. It was inspired by a desire to remove from the employers and the employees as many legal forms as possible, to eliminate delays, to streamline conciliation and arbitration; to allow a conciliator to go on to the job when a dispute seemed imminent instead of waiting until after it had developed; and to speed up and remove irritations, which, as Senator O’Flaherty has said, are inherent in leaving full jurisdiction to the court itself. After close observation of the system I contend that it has been a success. I admit at once - and frankly I admitted it when the 1947 legislation was under discussion - that, with so many conciliation commissioners in the field, anomalies must arise. That tendency is being watched. We attempted to obviate it in the original, legislation by placing an obligation upon the Chief Conciliation Commissioner to call regular meetings of the conciliation commissioners to ensure that they conformed to broad general principles. When I was Acting AttorneyGeneral, the Chief Judge and the Chief Conciliation Commissioner were constantly calling conferences of the conciliation commissioners. Agreements were reached, quite informally on general principles. I acknowledged the danger, in theory, that the system of conciliation commissioners, holding jurisdiction in separate industries, might well develop into something in the nature of a popularity contest in the absence of control. In fact, in the earlier stages, on one or two occasions, grevious anomalies, leading to industrial disputes, arose from the disturbance of some existing relationship. For instance, various industries, such as engineering and the metal trades, had strictly regulated margins that had been preserved down the years. A disturbance of one of those margins would cause repercussions through all sections of the industry. The Government acknowledges that there is real danger in that and it has been devoting its energies to finding a solution. It has some thoughts on the the matter’ which will be produced during the first session of the new Parliament. Senator O’Sullivan will then have an opportunity to consider the proposals from his accustomed place in this chamber.

Senator O’Sullivan:

– Possibly, but not probably.

Senator MoKENNA.- The honorable senator referred to the reports of the late Chief Judge Drake-Brockman and Chief Judge Kelly. I have not seen the latter report, but I remember the former one very well. It came into the Parliament when I was Acting Attorney-General. Some of the minor matters referred to by the Chief Judge have been attended to. A library for the conciliation commissioners has been established and an endeavour has been made to establish a bureau of economic research.. The right of appeal from conciliation commissioners, as the Chief Judge contended, runs quite counter to the ideas of the Government. That, the Government aims to overcome. The Government is concerned with finality. The Chief Judge referred also to co-ordinating the work of the conciliation commissioners. The Government is facing up to that problem. The Chief Judge and, I think, the Chief Conciliation Commissioner, raised questions about the legal representation of parties before conciliation commissioners. Some instruction has been given to them. I frankly could not accept the broad solution that the honorable senator proffered when he suggested that conciliation commissioners should confine their activities to conciliation. If a dispute is pending or has, in fact, occurred, a conciliation commissioner whose sole power is to conciliate would have to persuade the parties to come together, and to be reconciled. He would be in a very much weaker position than he would be if the parties knew that he could resolve the matter. They would be far more likely to be reasonable, and to reconcile their differences in the latter circumstances than they would be if they considered that he was merely asking them to be good boys, and could not compel them to_ do anything. The power of conciliation is much more effec tive when it is backed, in the ultimate analysis, by arbitral power. I would not support the honorable senator in the line of thought that he developed in suggesting a means of curing the defects and dangers that he saw. I now refer briefly to the history of the Women’s Employment Regulations. In 1942, when the Labour Government did not have a majority in the Senate, it passed, under the National Security Act, the Women’s Employment Regulations, which were designed to secure the position of women in industry. Those regulations were disallowed by the Senate. However, the Curtin Government took its courage in both hands and presented the regulations to the Parliament in the form of a bill. The Senate saw the light at that stage and allowed the bill to be passed. T think that one honorable senator who reviewed the history of the regulations overlooked this phase of the story, or he would have noted it as the first attempt bv a Commonwealth parliament to make a direct approach to the problem of women in industry. Their part in industry developed enormously during the war. and I am afraid that it will continue to develop. There has been a vast expansion of industry in Australia during the war and post-war periods. There is a keen demand for labour, and good conditions are offered to women as the result of competition between employers. Amenities of all kinds, such as cafeteria services, rest rooms, medical and nursing attention and various benefit schemes, are provided for them. Industry is beginning to make employment very attractive to women.

I remind Senator O’Sullivan that industry to-day is extraordinarily complex. That is why conciliation commissioners are appointed to particular industries. Let us consider the railways service in New South Wales alone. There are more than 1,000 classifications of jobs in that service. Whoever is charged with the responsibility of fixing margins must concern himself with nearly 1,100 different kinds of classification’. A court concerned with the whole of industry could not keep itself informed of the details of the activities of the railways service and maintain a nice appreciation of differences between scales, degrees of responsibility and disabilities of various kinds associated with nearly 1,100 occupations. One has only to think for a moment in order to realize that such a system must break down as in fact it had broken down when the Government changed the arbitration system in 1947. I appreciate the fact that the bill has produced a debate of a high order and I am greatly indebted to honorable senators who have spoken for the thoughtful and useful contributions that they have made to the discussion.

Question resolved in the affirmative.

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

page 2170

CHRISTMAS ISLAND AGREEMENT BILL 1949

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator ARMSTRONG:
Minister for Supply and Development · New South Wales · ALP

– I move -

That the bill be now read a second time.

The main purpose of the bill is to authorize the execution by the Government of an agreement with the Government of New Zealand in relation to certain rights to the phosphate deposits on Christmas Island in the Indian Ocean which have been jointly acquired by the Australian and New , Zealand Governments. It also has other purposes connected with the control and working of those deposits. The bill represents the successful culmination of negotiations undertaken by the Government with the object of ensuring continuity of supplies of high-grade phosphate to meet the needs of the agricultural industry of the Commonwealth. Previous negotiations which had been conducted as far back as 1926, and renewed from time to time in subsequent years, to secure the Christmas Island deposits had not been successful. As the result of the latest negotiations, the Australian and New Zealand Governments have jointly acquired, under an agreement made on the 31st December, 1948, the whole of the interests and assets of the Christmas Island Phosphate Company Limited at Christmas Island. This company is a private company which is incorporated in England.

Christmas Island is located about 1,400 miles north-west of Fremantle. It is an administrative dependency of the Colony of Singapore. It contains deposits of high-grade phosphate estimated at from 25,000,000 to 30,000,000 tons. Those deposits have been worked for more than 50 years by the Christmas Island Phosphate Company Limited under a 99 years7 lease of the whole of the island, which was granted to the company from the 1st January, 1891. Pre-war output of phosphate by the company was approximately 150,000 tons a year, most of which was sold to Japan. Since the war, supplies of this phosphate have been obtained for Australian and New Zealand requirements in order to supplement the supplies available from Nauru and Ocean Island. The present phosphate requirements of Australia and New Zealand are approximately 1,250,000 tons a year. That is expected to increase to approximately 1,500,000 tons a year by 1951-52. Nauru, with a total deposit of 75,000,000 tons, and Ocean Island, with a total deposit of 12,000,000 tons, can supply approximately 1,300,000 tons a year. The Christmas Island deposits should supply the balance of the requirements.

Under the agreement which has been concluded with the Christmas Island Phosphate Company Limited, the two governments have jointly purchased the whole of the rights of the company in the undertaking at Christmas Island as at the 31st December, 1948, including the unexpired portion of the company’s lease which, at that date, had still 41 years to run. An amount of £2,750,000 sterling was paid by the two governments as joint purchasers in consideration for the sale. This price was subject to adjustments in respect of capital expenditure incurred by the company after the 30th June, 1948, and also in respect of certain stock adjustments which were to be subsequently determined. These’ adjustments, which have since been effected with the company, involved a further sum of £142,695 sterling, bringing the total purchase price up to £2,892,695 sterling. Following, the. conclusion of the sale, consultations have taken place between the Australian and New Zealand! Governments as. to- the. method of providing, for the future, conduct of the undertaking at Christmas Island and a form of agreement which is acceptable to both governments, has. been arrived at. This proposed agreement is. set out in the schedule to the bill. Under this agreement it is provided that the purchase price and any additional moneys required for the working of the undertaking will be provided by the two governments in equal shares. It is estimated’ that Australia’s contribution under this* arrangement will be £1,500’,000 sterling.

A separate commission is to be established’ to manage and control the undertaking on behalf of the, two governments. This commission will consist of three commissioners; of whom one is to be appointed by the Australian Government, one by the New Zealand Government and one by the two governments jointly. The British Phosphate Commissioners representing the- Governments of the United Kingdom, Australia and New Zealand attend to the supply of phosphate for Australia and New Zealand and work the deposits on Nauru and Ocean Islands ; but as the United Kingdom Government is not joined in the agreement for the purchase of Christmas Island deposits it will be necessary to establish a separate commission to control this Christmas Island undertaking. However, in view of the close connexion between the working, of the Christmas Island phosphate deposits and the activities of the British Phosphate Commissioners in regard to Nauru and Ocean Islands deposits, it is proposed to utilize the services of the British Phosphate Commissioners as managing agents of the Christmas Island undertaking and thereby avoid unnecessary duplication of existing facilities and services. In anticipation of the agreement to give effect to this arrangement, the British Phosphate Commissioners assumed control as managing agents of the undertaking at Christmas Island from the 1st January, 1949.

Phosphate from Christmas Island will be disposed of in Australia and New

Zealand in conjunction with phosphate supplied by the British Phosphate commissioners from Nauru and Ocean Islands, under arrangements that will ensure, so far as practicable, the lowest possibl’e average cost. In practice the Christmas Island phosphate will be delivered1 to the nearer fertilizer works in Australia, principally in Western Australia, thus releasing a- corresponding tonnage of phosphate from Nauru and Ocean Islands for delivery to New Zealand. The supply of ground phosphate from Christmas Island to Malaya previously arranged by the- Christmas Island company will continue- in accordance with the obligation taken over from the company, but the agreement provides that phosphate is not otherwise to be supplied to countries outside Australia and New Zealand except with the unanimous approval of the commissioners’.

In common with the British Phosphate Commissioners the activities of the Christmas Island Phosphate Commission will be conducted on a non-profit basis, but any surplus fund’s which may be accumulated as the result of the activities of the commission are to be shared equally between the two governments. Although under the terms of the agreement the management and control of the undertaking is to be vested in the commissioners it will be noted from article 9 of the agreement that the commission will be subject to any general directions of policy that may be jointly given by the two governments. The addition of these Christmas Island deposits to the present holdings at Nauru and Ocean Islands, pursuant to the provisions of this bill, will ensure continuity of supplies of high-grade phosphate for Australian and New Zealand needs for many years to come. Honorable senators will appreciate the importance of this in relation to Australia’s agricultural industry. The New Zealand Government has already enacted appropriate legislation in relation to this matter.

Senator COOPER:
Leader of the Opposition · Queensland

– The object cf the measure is to complete the purchase by the Governments of Australia and New Zealand of deposits of superphosphate which is a fertilizer that is urgently necessary to Australia’s agricultural production, particularly of wheat and sugar, and also in pastoral areas. For some years past only moderate supplies have been available; they have not been sufficient to meet our requirements. Therefore, any additional supplies that can be obtained from Christmas Island will give an impetus to primary production in this country. I note that the purchase price is to be borne equally by the two governments, and I assume that the ‘supplies of superphosphate made available will also be shared on an equal basis. The pre-war output of superphosphate from Christmas Island was 150,000 tons.

The two governments now propose to expend £3,000,000 in developing those deposits. Thus, it is evident that extensive developmental work must be undertaken before the production from that source canbe increased substantially. As the output of superphosphate from Nauru and Ocean Islands is practically absorbed by the two countries, it is essential that production from Christmas Island be increased substantially as soon as possible. Can the Minister for Supply and Development (Senator Armstrong) indicate when it is likely that substantially increased supplies from that source will be made available to Australia? I should also like to know whether the controlling authority has been able to obtain the necessary plant and machinery to develop the project. As this proposal will help us considerably to increase our primary production, the Opposition supports the measure.

Senator ARMSTRONG:
Minister for Supply and Development · New South Wales · ALP

, - in reply - In my second-reading speech I mentioned that the pre-war production of superphosphate at Christmas Island was 150,000 tons a year. That production has already been increased to 200,000 tons a year, and it is estimated that it will be increased to 250,000 tons by 1950. It is hoped that the deposits at Christmas Island will yield a maximum of 400,000 tons a year, and it is expected to achieve that target during the financial year 1951-52.

Question resolved in the affirmative.

Bill read a second time.

In committee:

The bill.

Senator COOPER:
Leader of the Opposition · Queensland

– I appreciate the figures that have been given by the Minister for Supply and Development (Senator Armstrong). I assume that the total output from Christmas Island will be 400,000 tons annually, and that half of that will go to New Zealand and the other half will come to this country.

Senator ARMSTRONG:
Minister for Supply and Development · New South Wales · ALP

– Not necessarily. In my second-reading speech, I stated that for the purpose of economy in transport, the Christmas Island phosphate allocated to Australia and New Zealand would be delivered to Western Australia, thus releasing a corresponding tonnage of phosphate from Nauru and Ocean islands for shipment direct to New Zealand. Already phosphate is being exported from Christmas Island to Malaya, and it is possible that exports will be made to other countries in the future. The fact that production is 400,000 tons annually, does not necessarily mean that that quantity will be divided between Australia and New Zealand. However, jf there is a need for all that phosphate in those two countries,’I have no doubt that it will he available to them. I pointed out in my secondreading speech that if one of the commissioners disagreed, phosphate could not be exported to any other country. Presumably, the total output then would be available for Australia and New Zealand if required.

Senator COOPER:
Leader of the Opposition · Queensland

– Australia’s total requirement of phosphate in 1951-52- is estimated at 1,500,000 tons. All that we can expect from Ocean Island is approximately 1,300,000 tons a year. If we add to that the 200,000 tons that we shall get from Christmas Island, the total is 1,500,000 tons. What I want to know is whether we have in view, sufficient supplies of phospha te to meet our needs in the years to come. Fertilizer is most important to this country.

Senator ARMSTRONG:
Minister for Supply and Development · New South Wales · ALP

– Although the bill does not say so, I do not expect that the output from Ocean Island and Nauru has reached its maximum. The deposits on one of those islands at least, are huge, and I have no doubt that should the need arise, the output could he increased. However, I appreciate the point of view that the honorable senator is expressing. By a simple addition he calculates that we require the production of Christmas Island, plus the present output of Ocean Island and Nauru, to meet the combined needs of Australia and New Zealand.

Bill agreed to.

Bill reported without amendment; report adopted.

Bill read a third time.

page 2173

COAL INDUSTRY (TASMANIA) BILL 1949

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 WalesMinister for Shipping and Fuel · ALP

– I move -

That the hill be now read a second time.

This is a bill to give effect to an agreement that has been entered into between the Government of the Commonwealth and the Government of the State of Tasmania, on the regulation and improvement of the coal industry in that State. Honorable members will recall that, in 1946, this Parliament passed legislation - the Coal Industry Act 1946 - to give effect to an agreement which had been entered into with the Government of New South Wales for the establishment of authorities, on a joint basis, for the regulation and improvement of the coal industry in that State. After the Coal Industry Act 1946 came into operation, the Commonwealth Government pointed out to the other coalproducing States the need for increased production of coal throughout Australia in the interests of the whole of the Australian community, and offered to conclude with those States, with that object in view, agreements for the intro duction of legislation for the establishment of joint authorities for the regulation and improvement of the coal industry in those States. The Australian Government, of course, has regarded it as a matter of vital national concern that adequate supplies of coal should be available to meet the requirements of all consumers throughout Australia, and has considered that it should do all in its power, on a proper basis, to assist any State which produces coal and is prepared to take steps to increase such production. The Tasmanian Government has now requested the Commonwealth to join with it in the establishment of a joint authority,- with power to regulate and improve the Tasmanian coal industry in the interests of increasing the supplies of Tasmanian coal. The Tasmanian Government has pointed out that it is expected that the demand for Tasmanian coal will steadily increase and that such demand in 1953 will be approximately double the 194S demand. That expansion of production will require the provision of considerable finance, organization and planning. The Commonweal th has acceded to the request of the Tasmanian Government and has concluded an agreement with that Government as set forth in the preamble to the present bill.

The Tasmanian Government will introduce into the State Parliament as quickly as possible the complementary legislation covered by the agreement. The legislation of this Parliament and the legislation of the Tasmanian Parliament will together confer upon the proposed joint authority all the powers considered necessary to achieve the objects of the proposal, each Parliament legislating to confer such powers to the extent of its constitutional powers and within the limits of those constitutional powers. The joint legislation will authorize the establishment for Tasmania of a joint authority to be known as the Tasmanian Joint Coal Board. That board is to consist of the persons who are for the time being members of the Joint Coal Board established, in respect of New South Wales by the Coal Industry Act of 1946, together with one other member. It is proposed that that other member will, between meetings of the full board and subject to decisions of the full board on matters of policy, carry out generally the executive functions. of the board in relation to day-to-day problems.

The powers and functions to be conferred upon the board with respect to the Tasmanian industry are to be substantially identical with those conferred upon the New South “Wales Joint Coal Board in respect of the New South Wales coal industry, with certain exceptions which have been agreed to having regard to differences in the nature and extent of the problem. Unlike the New South Wales board, the Tasmanian board is not to have the power of compulsorily acquiring coal-mines, or the special power of making an order placing the day-to-day management of a particular coal mine under the direct control of the hoard. As in the case of the New South Wales board, the Tasmanian board will have full powers not only to take steps to increase production of coal in Tasmania, but also to ensure the proper and equitable distribution and use of the coal and to regulate the selling prices of the coal and also to promote the health and safety and industrial welfare of the mine-workers and the social welfare of the mine-workers and their dependants, and communities of persons in coal-mining areas.

The joint legislation of which the present bill forms a part will also provide for machinery to deal with certain aspects of the industrial conditions of the workers engaged in the production of coal in Tasmania. It will authorize the establishment of a special tribunal which will have power conferred upon it by State legislation to deal with, and to settle effectively and expeditiously, intrastate industrial disputes in the industry which “may arise from time to time and otherwise interfere with production.

In connexion with finance, the Commonwealth and the State of Tasmania have agreed to divide the responsibility on a basis similar to the formula which was included in the agreement for the establishment of the New South Wales Joint Coal Board. The Commonwealth and State will share the cost of administration equally and will make contributions on a £l-for-£l basis to the Tasmanian Joint Coal Board’s welfare fund.

The amount which the Tasmanian board will receive each year for welfare purposes will be related to the contributions being made to the welfare fund of the New South Wales board. All other expenses, including those arising from any production or trading activities undertaken by the Tasmanian board will be met by the Commonwealth, which will also provide finance for capital purposes.

Senator COOPER:
Leader of the Opposition · Queensland

– The Opposition parties have always been fully aware of the responsibility and the duty of the States to produce more coal for Australia generally. The industrial development of the mainland States of Australia was very great both during the war years and in the post-war period, and in consequence more coal is required now than before the war. As I have said in this chamber on many previous occasions, coal is the lifeblood of industry and of the economy of this country. It would appear that the industrial development that has taken place in Tasmania has been proportionate to that which has taken place in the mainland States, with the result that that State also needs more coal. A joint authority is to he constituted in Tasmania on similar lines to the Joint Coal Board which functions in New South Wales, and the Tasmanian body will be responsible for the conduct and development of the coal-mining industry in that State. I notice, however, that the Tasmanian body will not have the special power compulsorily to acquire coal-mines or to place the day-to-day management of the coal-mine under its direct control. The operation of the mines is to be left in the hands of private enterprise. I notice also that a special tribunal is to be established to settle industrial intra-State disputes, which will be similar to theCoal Industry Tribunal of New South Wales. The Opposition welcomes theintroduction of the measure, and looks forward with interest to the improvement and development of the coal-mining - industry of Australia.

Question resolved in the affirmative.

Bill read a second time, and passed through its remaining stages withoutamendment or debate.

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LIQUID FUEL (RATIONING) BILL 1949

Bill returned from the House of Representatives with amendments.

In committee (Consideration of House of Representatives’ amendments) :

Clause 6 - (1.) The Governor-General may make regulations, not inconsistent with this Act, with respect to -

control of the distribution of liquid fuel with a view to the just and orderly sharing of the available liquid fuel; and

. . . . (2.) The regulations may make provision for investing any court of a State with federal jurisdiction with respect to any matter arising under the regulations.

House of Representatives’ amendment No. 1 - Paragraph (6), leave out “and” (last occurring).

House of Representatives’ amendment No. 2 - After paragraph (c) of sub-clause (1.) add the following word and paragraph: - “; and (d) matters necessary or convenient to be prescribed for carrying out or giving effect to this Act”.

House of Representatives’ amendment No. 3 - Leave out sub-clause (2.), insert the following sub-clauses: - “ (2.) The regulations may make provision for an appeal to the Supreme Court of a State or Territory of the Commonwealth, constituted by a single judge of that court, against the suspension or revocation of a licence granted under the regulations, and the decision of the court, as so constituted, upon any such appeal shall be final and not subject to further appeal. “ (3.) For the purpose of the last preceding sub-section the regulations may make provision for investing the Supreme Court of a State with federal jurisdiction, and for conferring jurisdiction on the Supreme Court of a Territory of the Commonwealth.”.

Clause 12- (1.) The Governor-General may make regulations in relation to the withdrawal of liquid fuel from warehouses … or factories (2.) Regulations under this section. . . . House of Representatives amendment No. 4 - Sub-clause (2.), leave out “this section”, insert “ the last preceding sub-section “.

House of Representatives’ amendment No. 5 - After sub-clause (2.) insert the following sub-clause: - “ (2a.) Where the law of a State relating to the distribution or rationing of liquid fuel provides for an appeal to the Supreme Court of the State against the suspension or revo cation of a licence granted under that law, the decision of that court shall be final and not subject to appeal to any other court.”.

Clause 13- (1.) For the purpose of enabling a specified law of a State (being a law relating to the distribution or rationing of liquid fuel) to operate, the Minister may, by notice in the Gazette, declare that, on and after a date specified in the notice, the operation of this Act (other than this section and section twelve) in the State specified in the notice shall be suspended. (2.) The Minister may, by notice in the Gazette, revoke any such declaration as from a date specified in the revoking notice. (3.) On and after the date specified in a declaration under this section in respect of a State until the day immediately preceding the date as from which the declaration is revoked -

nothing in this Act shall operate or be deemed to have operated so as to prevent the full operation of the State law specified in the notice.

House of Representatives’ amendment No. 6 - Sub-clause ( 1. ) , after “ may “, insert “ , after consultation between the Prime Minister and the Premier of the State concerned “.

House of Representatives amendment No. 7 - Sub-clause (2.), leave out “The”, insert “ After consultation between the Prime Minister and the Premier of the State concerned, the “.

House of Representatives’ amendment No. 8 - Sub-clause (3.), paragraph (b), after “notice”, add “(including its operation in respect of any period prior to the date specified in the declaration) “.

Motion (by Senator Ashley) agreed to -

That the amendments be agreed to.

Resolution reported ; report adopted.

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DEFENCE (TRANSITIONAL PROVISIONS) BILL 1949

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

page 2175

LEAVE OF ABSENCE TO ALL SENATORS

Motion (by Senator Ashley) - by leave - agreed to.

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

page 2176

SPECIAL ADJOURNMENT

Motion (.by Senator Ashley) agreed to-

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

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BILLS RETURNED FROM THE HOUSE OP REPRESENTATIVES

The following hills were returned from the House of Representatives without amendment : -

National Health Service Bill 1949.

Sugar Agreement Bill 1949.

page 2176

CO A L EXCISE BILL 1949

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

page 2176

ADJOURNMENT

Valedictory - Manufacture and Sale of Contraceptives

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

– I move -

That the Senate do now adjourn.

Because of the approaching termination of the Eighteenth Parliament, and the fact that we shall not be returning here for some little time, I take this opportunity to express to you, Mr. President, and to the officers of the Senate, the Hansard staff, and the attendants, my appreciation of the assistance that they have given to me and other members of the Government during the term of this Parliament. I also express my appreciation of the cooperation of the Leader of the Opposition (Senator Cooper). Whilst we have not always agreed, and indeed, have had a cross word or two occasionally, outside the chamber our relations have been mostcordial. I hope that that relationship will always continue. May I say with all sincerity - and I think that on this occasion it will be agreed that I am sincere - that I hope that every honorable senator will return here next year. I know that the political war will start soon, .that there will be recrimination and some hard words and, as in every battle, some casualties. However, I sincerely hope that all who have been sitting in this chamber during this Parliament will return. May I also extend to you, sir, and to honorable senators generally, as we’ll as to the staff, my best wishes for the festive season which will have passed before we return here next year.

Senator COOPER:
Leader of the Opposition · Queensland

.- On behalf of the Opposition, I should like to thank the Minister for Snipping and Fuel (Senator Ashley) for his very kind remarks, and particularly for his allusion to the attitude adopted by the Opposition to the work of the Senate during the lifetime of the Eighteenth Parliament. Opposition senators have certainly been few in number but we have done our best to uphold the best traditions of His Majesty’s Opposition. As the Minister said, we have exchanged some hard knocks, but they come at any time in life and I believe that they help to make life a little more interesting. We appreciate, Mr. President, the courtesy -that you have extended to us during the period of this Parliament. We also thank the Leader of the Senate and his colleagues for their treatment of the Opposition. The Clerk of the Senate, the Clerk Assistant, and the Usher of the Black Rod have assisted us on many occasions and we appreciate their help. We also thank the Hansard staff, who have not only taken our speeches down - I do not know how they manage it day after day - but have also greatly improved them. We are indebted also to the press. Sometimes the reporters in the press gallery may have misunderstood us, but they have done their best to give to the public of Australia a true record of the happenings in this chamber. A word of thanks is due to the parliamentary broadcasting staff also. The broadcasting of the proceedings in the Parliament was begun during the last three years, and Mr. Romans with his running commentary on the work of the Parliament and also those who have helped him on the broadcasting staff, have been of great assistance to the many hundreds of thousands of people who have listened to our words of wisdom. We also express our appreciation of the work of the attendants. They have always been willing to help us where they could. The staff who are in charge of the records and also the Library officers, who assist us in our research work are deserving of our best thanks. Finally, I include officers of the parliamentary refreshment rooms, who look after the needs of the inner man. On behalf of the Opposition, I offer them all good wishes for Christmas and the New Year. May they have good health for many years to come.

The PRESIDENT (Senator the Hon Gordon Brown:

– I thank both the Leader of the Senate (Senator Ashley) and the Leader of the Opposition (Senator Cooper) for their kindly references to me. I am approaching the end of my eighteenth year as a member of this Parliament, and I have seen many changes in it. There will be very few changes of the present membership of the Senate at the election if I have read the signs aright, and, of course, if proportional representation works out as it should do. This is the end of an era; a new era will commence early in 1950, when the membership of the Senate will be increased from 36 to 60. I understand that many former senators, whom we thought we had seen in this chamber for the last time, are likely to return full of fight, and possibly full of fury on occasions. I am sure that their presence will make the work of the President very much more interesting than it has been during the life of this Parliament. After all, a one-sided game is not nearly so interesting as is a game in which the competition is keen, and debates have been rather one-sided with 33 honorable senators representing, the Labour party and only three honorable senators representing the Liberal party and the Australian Country party. That circumstances causes me to recall to mind a period many years ago during which there were only three representatives of the Labour party in the Senate - Senator Collings, Senator J. V. McDonald, who was replaced after his death by Senator Courtice, and myself. We were known as the “three musketeers “. Senator Collings was the Leader of the Opposition, I was theDeputy Leader of the Opposition, and Senator Courtice was the Whip. The three of us also constituted the rank and file of the Opposition. The wheel of fate turned gradually with the result that, in the present Senate, Labour has a majority of 33 to 3. In the new Parliament there will be at least 21 Opposition senators. The Opposition parties may gain even more seats than that, but that is improbable. We shall welcome some good debaters, and the Senate will undoubtedly be a strong force in the legislature. In making that remark I cast no reflection upon the present Senate; but, as I have said, with only three members of the Opposition, there has not been the vitality in debates that one expects when there is a strong Opposition. I have no doubt that the President of the new Senate will have a difficult task to perform on occasions in maintaining order.

I echo the sentiments that have been expressed by both the Leader of the Senate and the Leader of the Opposition in relation to the staff. There is no doubt that the Senate staff helps us in every way possible. I cannot speak too highly of them, of the members of the Hansard staff, or of the messengers and other officers who assist in the work of the Parliament. I have often thought that it would, be very interesting for the public to see the Parliament, as it were, from the back door. It would be very informative for the people to learn of the work that lies behind the debates that take place in this chamber. Scores of officers, cleaners, messengers and refreshmentroom workers are essential to the operation of the parliamentary institution. The National Library, which serves the Parliament, has developed greatly in recent years, and its activities now extend to almost every part of the globe. The story of its development is extremely interesting. It is in communication with diplomatic centres in every part of the world. Only a few weeks ago I read a report by the Librarian, Mr. H. L. White, upon the work of the Library. I believe that the public should be informed of the work that is done not only by senators and members of the House of Representatives, but also by the officials who- contribute to the effective operation of this great democratic institution. The Leader of the Opposition made a very humorous allusion to the press.

Senator Ashley:

– Who will eat the contraband fish while we are away from Canberra ?

The PRESIDENT:

– I understand that the fish story went down very well, and that an Australian Broadcasting Commission commentator injected a little humour into it. It is good to have a little humour in the parliamentary world. I have always said that the world would have been a great deal happier if our late enemy Hitler, who has passed away, thank God, had had a sense of humour. If some of the dictators who are alive to-day had a sense of humour we should not be living in such apprehension of their intentions. Humour is a splendid attribute. Thank goodness it is highly developed in me. I admit that it is a gift. Being a Scotsman, I would not have it otherwise. There has often been humour in the proceedings of the Senate since I have been the President, and I have enjoyed it as I enjoyed the sally concerning the press by the Leader of the Opposition. After all, we cannot do without the pressmen, God bless them! They make mistakes on occasions-

Senator COOPER:

– It was not a sally. It was a sincere expression.

The PRESIDENT:

– There is no doubt that the Leader of the Opposition always speaks sincerely. His remark may have been truthful. The press plays a very important part in a democracy, and it will be a great day for us when we get a free press in this country. Everybody admits that our fellow workers in the press gallery are agents of the newspapers and cannot always publish what they would like to publish. It would be very interesting to revert to some of the customs of the Bacchanalian era, when people virtually went mad for a few days of every year. It would be splendid .if our pressmen could take control of the newspapers for several days each year. Some very interesting editions would be issued. Having a free hand to publish what they wished, they would be able to tell the people the truth as they see it as workers in the community. Being workers, they have to do their jobs and I know that the reports that they write are often amended by the blue pencils of the sub-editors, who act at the dictates of the bosses, with the result that the complete truth does not reach the people. I think all officers connected with the Senate, from the highest to the lowest, for the good work that they have done and wish all honorable senators a happy election campaign. I hope that we all return next January or February full of vim and vigour and ready to work for the good of the people.

Senator TANGNEY:
Western Australia

– I regret that at this late hour, and after hearing the pleasant valedictory speeches that have been made, I am impelled to speak on a matter which it is neither pleasant nor easy for me to discuss. However, it is a matter of great importance and, as the Parliament will not meet again before January at the earliest, I raise it in the hope that the Government, if it can possibly do so, will take action to put down an evil of which I became cognizant only yesterday. I do not know whether the Minister for Shipping and Fuel (Senator Ashley) has read a newspaper report dealing with a case now before the Arbitration Court in New South Wales that indicates that young girls of fifteen and sixteen years of age are being employed at a low wage in wholesale drug factories in the manufacture of contraceptives. I do not think that there could be anything more damning in our national life than that huge combines should be making huge profits through trafficking in such goods and should be so devoid of morals as to employ child labour in their manufacture. I do not know whether the Government has any control over the manufacture of such goods, but I believe that it should be able to do something to prohibit the employment of other than adults in such an industry. It is a blot on Australia’s good name that young girls should be employed by drug houses for such a purpose. I regret having had to draw the attention of the Senate to this matter; but it is so important that I could not let it pass unnoticed.

Senator CRITCHLEY:
Western Australia

– I express my great, admiration of Senator Tangney for bringing forward the distasteful subject that she has felt it her duty to raise this evening. . With her, I urge the Government to realize the serious damage that is being done almost daily to our national wellbeing in that respect. We have only to see what is happening in other countries to realize to what degree the morals of the nation can he reduced through such traffic that is carried on almost in an open-door fashion.

I extend my good wishes for the Christmas season to other honorable senators. With respect to the forthcoming general election, you, Mr. President, summed up the position accurately when you said that from your observation there is not likely to be any changes in the Senate so far as the present members of this chamber are concerned. I was struck by your statement that the present composition of the parties in the Senate reminded you of the position that existed here when you were first elected to the Senate. At that time, the Labour Opposition consisted of only three senators. I believe that at an earlier period in the history of the Senate therewas only one Labour representative in this chamber.

The point I make is that on those two occasions the present Opposition parties when they were in office made no attempt to do what the Labour Government has done to prevent a repetition of such circumstances. Therefore, as the Government has introduced the system of proportionate representation for the election of the Senate, I trust that members of the Opposition parties during the forthcoming general election campaign, when they speak over the air or through the press, in which no doubt they will be given unlimited publicity, will not be so remiss that they will ignore what the Government has done in that respect. 1 hope that they will be frank enough to say to the people, “ Don’t forget that Ben Chifley has given to us the opportunity to increase our numbers in the Senate “. The introduction of the system of proportional representation for the election of the Senate was a democratic action for which the Opposition parties should bless Ben Chifley and the Labour Government.

Senator COOKE:
WESTERN AUSTRALIA · ALP

– I commend Senator Tangney for drawing the attention of the Senate to one of the most vicious evil’s that could possibly arise in this country to endanger our moral outlook as a nation. In this chamber from time to time we have claimed with pride that we are cooperating with the United Nations in the prevention of the crime of genocide. Yet, at the same time, we. are somewhat hypocritical when we refuse to take notice of the evil to which Senator Tangney has referred. Perhaps, on many occasions, we lack the necessary moral courage to speak plainly about that filthy trade. Therefore, I join with Senator Tangney in requesting the Government to explore every avenue with a view to putting a stop to it, or at least to reduce it to a minimum.

Senator O’SULLIVAN:
Queensland

– I associate myself with Senator Tangney’s condemnation of the very disgusting state of affairs to which she has drawn attention. I do not know whether the Government can take effective action in the matter. I believe that public opinion will be sufficient in its condemnation of such an evil to destroy it. However, the Government, as I have said on previous occasions, can tackle this problem by prohibiting the carriage through the mails of advertising matter propagating this evil indiscriminately among males and females, whether they be married or single, young or old.

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

in reply - I shall bring the matter that Senator Tangney has raised to the notice of the Minister for Labour and National Service (Mr. Holloway) and the Attorney-General (Dr. Evatt).

Question resolved in the affirmative.

page 2179

PAPERS

The following papers were pre sented : -

Commonwealth Public Service Act- Appointment - Department of Health- J. H. Little.

Customs Act - Regulations- Statutory Rules 1949, No. 78.

Defence (Transitional Provisions) Act - National Security (Industrial Property) Regulations -

Orders - Inventions and designs (16). Regulations- Statutory Rules 1949, No. 80.

High Commissioner Act - Regulations - Statutory Rules 1949, No. 79.

International Monetary Agreements Act - Annual Report by the Treasurer regarding the operations of the Act and of the operations, insofar as they relate to Australia, of the International Monetary Fund Agreement and the International Bank for Reconstruction and Development Agreement, for year 1948-49.

Lands Acquisition Act - Land acquired for - Department of Civil Aviation purposes- Carnarvon, Western Australia.

Postal purposes - Mundaring, Western Australia. The Junction, New South Wales.

Senate adjourned at 10.17 p.m. to a date and hour to be fixed by the President.

Cite as: Australia, Senate, Debates, 27 October 1949, viewed 22 October 2017, <http://historichansard.net/senate/1949/19491027_senate_18_205/>.