Senate
10 April 1957

22nd Parliament · 2nd Session

  1. Senate
  2. 22nd Parliament
  3. 1957

The PRESIDENT (Senator the Hon. A. M. McMulIin) took the chair at 3 p.m., and read prayers.

page 411

QUESTION

BASS STRAIT FERRY SERVICE

Senator MARRIOTT:
TASMANIA · LP

– I preface a question to the Minister for Shipping and Transport by stating that the people of Tasmania were most heartened by the Government’s decision to have constructed a vessel to replace “ Taroona “ on the Tasmania passenger service, and they would be interested to know how the matter is progressing. Will the Minister inform me whether the construction of the new steamer has actually been commenced? If not, when is it expected that the keel will be laid?

Senator PALTRIDGE:
Minister for Shipping and Transport · WESTERN AUSTRALIA · LP

– When I was speaking to the Australian Shipbuilding Board about this matter a week or ten days ago, I was informed that the work is progressing, although construction has not actually started. A good deal of prefabrication has been done, and materials are being assembled. It is expected that the prefabricated double bottom of the vessel will be laid at the shipbuilding yards about the end of August

page 411

QUESTION

COPPER

Senator SCOTT:
WESTERN AUSTRALIA

– Will the Minister for National Development say whether it is true that the overseas price of copper recently dropped to approximately £A.300 a ton? From the point of view of the Australian producers, is this price considered to be dangerously low? If it is, bas the Government considered giving assistance to mining concerns working low-grade deposits to enable them to continue?

Senator SPOONER:
Minister for National Development · NEW SOUTH WALES · LP

– The honorable senator’s statement that the overseas price of copper has recently dropped to approximately £A.300 may be right, although the latest price that 1 recollect was £A.310 a ton. The only criterion that I can rely on, in considering whether this is a dangerously low price, is the Tariff Board’s report thai was furnished about two and a half years ago, in which the view was expressed that the low-grade Tasmanian copper-mining concerns, particularly at Mount Lyell, should not receive protection or support while the world parity price was of the order of £A.250 a ton. There may have been an increase in costs since that Tariff Board report was made, but I have it fixed in my mind that the Tariff Board has expressed the view that Australian mines can operate satisfactorily unless and until world parity prices fall below £A.250 a ton.

page 411

QUESTION

AIRLINE FLIGHT SCHEDULES

Senator WARDLAW:
TASMANIA

– Will the Minister for Shipping and Transport direct the attention of the Department of Civil Aviation to the fact that at present aircraft of competitive airlines for similar destinations often leave within minutes of each other? Could the department give consideration to a better co-ordination and variation in the times of departures and arrivals with the object of providing a better service to the travelling public, and in the interest of public safety?

Senator PALTRIDGE:
LP

– This question of the scheduling of aircraft flights receives continuing attention from both the Department of Civil Aviation and Trans-Australia Airlines, to my knowledge, and almost certainly it is considered by other operators. The plea made by all the operators is to the effect that they arrange a particular schedule to fit in with their other connecting services and to alter one particular flight from any particular point would involve an all-round alteration of times of departure from other parts of the Commonwealth. That is the reason usually given for these close departure times as between the aircraft of one airline and those of another. This problem has not escaped my attention, and I shall again bring the honorable senator’s question to the notice of the department and see if any progress has been made.

page 411

QUESTION

TASMANIA AND MAINLAND CABLE

Senator AYLETT:
TASMANIA

– Can the Minister representing the Postmaster-General tell us whether the damaged cable between Tasmania and the mainland has been repaired? If it has not been repaired, can he give iw any informationastowhenit islikely to be repaired? Some, of us are experiencing great difficulty in gettinga clear line from Tasmania for the purpose of conducting a conversation.

Senator COOPER:
Minister for Repatriation · QUEENSLAND · CP

– I cannot immediately give the information the honorable member desires, but I shall get in touch with the Postmaster-General and ask him to give me a considered reply on the matter.

page 412

QUESTION

NAVAL GUIDED MISSILES

Senator HANNAN:
VICTORIA

– In addressing a question to the Leader of the Government in the Senate, I refer to the recent message from the President of the United States of America to our Prime Minister in which President Eisenhower stated that he was proud to have taken a cruise upon an American cruiser bearing the name U.S.S. “ Canberra “, that this cruiser was one of the first ships to be armed with guided missiles, and that the ship was a living symbol of the friendship of our countries welded in thefire of battle and now stronger than ever in the quest for peace with justice. Does the Minister agree that this stirring message is a true reflex of the high opinion in which this country and its government are held by the United States? Can he state, after conferring with the Minister for Defence, when action can be taken to equip any Royal Australian Navy vessels with guided missiles?

Senator O’SULLIVAN:
Attorney-General · QUEENSLAND · LP

– In reply to the first part of the honorable senator’s question, I am happy to say that that very thrilling message is symbolic of the very cordial relationship existing between the great United States and our own country. I shall refer the second part of his question to my colleague, the Minister for Defence.

page 412

QUESTION

STARFIGHTER AIRCRAFT

Senator VINCENT:
WESTERN AUSTRALIA

– I address a question to the Minister representing the Minister for Supply relating to the recent announcement by the Minister for Supply that we shall be commencing the manufacture of F104 Starfighter aircraft in Australia. That was a most profound and most interesting statement, and I should like to know whether the Minister can tell the Senate when the manufacturing processes might be commenced and whether, these aeroplanes will be manufactured for the purposes of supplying not only Australia but also, perhaps, New Zealand and other countries which might like to use these famous aeroplanes. Most importantly, when is it expected that Australia will be able, to produce these famous fighters?

Senator PALTRIDGE:
LP

– The statement that was made by the Minister for Supply and Minister for Defence Production in another place referred to the complexities of preparation for the manufacture of this type of aircraft, and also to the possibility of a mission proceeding to the United States of America to investigate production methods and techniques in that country. In the circumstances, it would appear that there will be at least some little delay before manufacture can be commenced, and I am not in a position to say just how long that delay will be. I suggest that the honorable senator put his question on notice, and I shall obtain a considered answer for him.

page 412

QUESTION

POSTAGE STAMPS

Senator WORDSWORTH:
TASMANIA

– I preface a question directed to the Minister representing the Postmaster-General by stating that I have been approached by the managers of several business firms who state that they have extreme difficulty in obtaining½d. postage stamps. I can substantiate these complaints from my own. experience. Only yesterday, in the post office in this building, I had difficulty in obtaining½d stamps, and I have experienced the same difficulty in Tasmania several times. Is there a shortage of id; stamps? If there is, will the Minister take steps to rectify; that shortage?

SenatorCOOPER.I shall bring the honorable senator’s question to thenotice of my colleague, thePostmaster-General, and I am quite certain that if there is a shortage of these stamps he will have it overcome.

page 412

QUESTION

SEARCH FOR OIL

Senator O’BYRNE:
TASMANIA

– I direct a question to the Minister for National Development, as Minister in charge of the Bureau of Mineral Resources. Some time ago, when the boom in oil shares was mentionedin the Parliament, it was stated that there was no law to protect the fools who play the stock exchange. While realizing the great work being done -by the Bureau of Mineral. Resources in the search for oil in Australia; and the great disappointment of all Australians that oil has not yet been found on this continent, I ask the Minister whether he will have a thorough parliamentary investigation made into the circumstances surrounding the finding of traces of oil at Rough Range, which triggered off the stock exchange ramp, in order to determine, once and for all, whether the Australian public has been, the victim of what could be described as a scandalous confidence trick.

Senator SPOONER:
LP

– The suggestion, that there was a scandalous confidence trick connected with the strike of oil at Rough Range is preposterous, and we would be done great harm; indeed, if we proceeded to examine the circumstances on that basis. There is no doubt that it was a genuine mining strike, and that there was tremendous disappointment on the part of all those’ persons who are experienced in, and familiar- with, the search for oil that the performance has not been repeated. There is i very great confidence on the part of those who have- the right; by knowledge, to an opinion, that there is oil in Australia, but there is no doubt at all that finding it is a very “ difficult task. One of our primary objectives must surely be to encourage the provision of capital to continue the search, and what the honorable senator suggests would not aid the achievement of that nationally important objective..

page 413

QUESTION

TEA

Senator GORTON:
VICTORIA

– Has the: Minister representing the Minister for Trade noticed recent suggestions that there should be imported into this country quantities of Formosan black tea - not green tea - for the. purposes of blending; to enable -tea to be. sold at a much lower price than that at which, it is at present available to. the. public? Will the: Minister ascertain whether there , is. any difficulty in the importation .of this tea owing to. some . connexion between: the. holders of tea . import licences and the tea plantations in ‘ Ceylon? Should , this, be the case, will the Minister consider’ issuing- special licences for the importation of Formosan tea for the benefit of the Australian public?

Senator SPOONER:
LP

– I have seen newspaper reports about the proposed importation of tea from Formosa, and 1 read them with some interest. I do not know whether there is any difficulty such as the honorable senator has suggested. I ask him to put his question on the notice-paper so that we may ascertain what can be done.

page 413

QUESTION

SHIPBUILDING

Senator PEARSON:
SOUTH AUSTRALIA

– My question to the Minister for Shipping and Transport relates to the. possibility of building fairly large tankers in Australia. Have there been any developments of consequence in that direction? Has the Minister had any conferences with the Premier of South Australia on this matter, and has he any statement on it to. make to the Senate?

Senator PALTRIDGE:
LP

– During the past few months, there have been what I would not. describe. now as anything more than a number, of interesting inquiries as to the possibility, of building- tankers in Australia. In that connexion, I have had one conference: with the Premier, of South: Australia and, ‘ at. am appropriate: time, that conference will, be continued.. That was in connexion with the establishment of . yards. There, have also been inquiries about the possibility of existing. Australian yards constructing tankers to overseas order. Inquiries ^ along those, lines are being con:tinued. , The honorable senator will appreciate that: that raises a number of difficult questions inasmuch as Austraiian costs, compared with overseas costs,’ for shipbuilding; would be. a predominant feature of any competition between Australian and overseas yards, particularly as the subsidy for Australian shipbuilding does not extend beyond the. construction of ships for the coastal trade. Nevertheless, those inquiries, are being, continued in order to ascertain whether, anything, can be done.

’ :’’ NEW GUINEA SHIPPING.

Senator KENDALL:
QUEENSLAND

– Is the Ministerrepresenting: the; Minister for- Territories, aware that; the M.V.. “ Southern. Cross”, which was formerly owned by the Melanesian Mission, has been bought by the Bougainville Company of New Guinea? Is he aware that registration was refused that vessel in Sydney, and that it was also refused by the Ministry of Shipping in Great Britain on the ground that New Guinea was outside Her Majesty’s dominions, so that the vessel had to proceed to New Guinea without a flag? Will the Minister investigate the present position of vessels that are owned by companies having their head office in New Guinea, as any vessel not sailing under the flag of some country is liable to be apprehended on the high seas?

Senator COOPER:
CP

– I shall have the honorable senator’s question brought to the notice of the Minister for Territories, and obtain from him a considered reply.

page 414

QUESTION

SEARCH FOR OIL

Senator SEWARD:
WESTERN AUSTRALIA

– Has the Minister for National Development noticed a report in the “ West Australian “ of 9th April to the effect that at the annual conference of engineers in Western Australia two engineers, while expressing disappointment at the results so far obtained, said they were confident that oil would be found in commercial quantities in Australia? Has he any additional information to give us on this subject?

Senator SPOONER:
LP

– I have seen the report of the comments by those two officers of Wapet, and I read it with a good deal of interest and satisfaction. Great importance attaches to a continuance by Wapet of its search for oil in Western Australia. I wish my memory was sufficiently good to enable me to remind the Senate of the millions of pounds that have been invested by that company in the search for oil. It was a matter of profound satisfaction to me to read that those two officers had stated that, despite the many millions of pounds that have been spent on the search for oil and despite the fact that so far they have been unsuccessful, they believe they will be successful in the future. Speaking as a member of the Government, I very sincerely hope that the directors of the overseas component of the company will back the local officers and provide the necessary capital to enable the search to be continued.

page 414

QUESTION

SOCIETY OF INTERNATIONAL LAWYERS

Senator VINCENT:

– My question, which is directed to the Attorney-General, relate* to a body which rejoices in the name of the Society of International Lawyers. By way of preface, I understand that at the moment this body is located in the city of Brussels. It has been pouring into this country propaganda in the form of pamphlets and so on of a very definite anti-British character. It has also come to my notice that, unfortunately, several young lawyers in Perth have joined the organization. They should have had enough brains to keep out of it. I should be very grateful if the Minister would inform us whether he is aware that this body has Communist leanings, or tell us what relationship it bears to the Communist party.

Senator O’SULLIVAN:
LP

– The existence of this organization was brought to my notice some time ago. I had investigations made in regard to its nature, constitution, functions, operations, activities, and so forth. The very reliable information furnished to me indicated that it was founded in Paris, that it has since moved to Belgium, and that beyond all reasonable doubt it it really another spearhead of Communist propaganda.

Senator Grant:

– They must have a lot of spears.

Senator O’SULLIVAN:

– They have.

page 414

QUESTION

TRADE WITH JAPAN

Senator BUTTFIELD:
SOUTH AUSTRALIA

– I ask the Minister representing the Minister for Trade whether his attention has been directed to a statement, published in to-day’s press, by a leading Japanese importer in which he points out that Japan has nearly reached the limits of its agricultural output, and must import increasingly large quantities of food and raw materials. He mentions that Japan would like to import coal, iron ore, and copper from Australia as well as rice, wheat and barley, in addition to wool. Has the Minister any intention of sending a trade delegation to Japan to investigate the possibilities of developing such trade negotiations?

Senator SPOONER:
LP

– I ask the honorable senator to place the question on notice, because I could not answer, off the cuff, a question which involves the complexities of Australian trade relations with Japan. Australia is selling much more to Japan than Japan is selling to Australia. However, I am confident that the Minister for Trade will be able to supply the information requested by the honorable senator.

page 415

QUESTION

TARIFF REVIEW

Senator WRIGHT:
TASMANIA

– I address a question to the Minister representing the Minister for Trade, or the Minister for Customs and Excise, whichever is the appropriate Minister. From time to time, I have urged the desirability of conducting an independent review of the impact which the Australian tariff makes upon our economy. I ask the Minister whether his attention has been directed to the report of Professor Copland. Professor Brigden. Professor Giblin and Mr. Dyason in 1929 after a searching inquiry into the effect of the tariff upon the Australian economy. I ask him. also, whether or not any subsequent report of that nature has been made on this subject. Will the Minister consider the advisability of setting up a similar committee to make an independent inquiry for that purpose at the present time?

Senator SPOONER:
LP

– I remember the 1928-29 report to which the honorable senator refers, and I know that it has been the subject of a good deal of consideration over the last couple of years. My recollection is that there is a departmental assessment of the variations that have occurred. I know that consideration has been given also to having made a further independent reappraisal, but I do not know what has been the final decision. I ask the honorable senator to place the question on notice, and I shall obtain the information for him.

page 415

QUESTION

ROYAL AUSTRALIAN NAVY

Senator MARRIOTT:
TASMANIA · LP

– I address my question to the Leader of the Government, because it concerns both immigration and recruitment tor the Royal Australian Navy. In view of the policy of the United Kingdom Government to decrease the number of ships in the Royal Navy, will the Minister suggest that an approach be made either by the Minister for the Navy or the Minister for Immigration to enlist excess royal naval personnel to fill vacancies in the Royal Australian Navy? This would help the flow of suitable British immigrants to Australia, and would also bring up to full strength the trained personnel of the Royal Australian Navy.

Senator O’SULLIVAN:
LP

– The proposition inherent in the question of the honorable senator is a very interesting one, and I shall have pleasure in bringing it to the notice of my colleagues, the Minister for Immigration and the Minister for the Navy.

page 415

QUESTION

RADIO-TELEPHONE SERVICES

Senator SCOTT:

– My question is directed to the Minister representing the PostmasterGeneral. I understand that, following a question which I asked in the Senate a couple of weeks ago, the towns of Derby and Broome will be connected by radio telephone to the Australian telephone service by the middle of next year. Can the Minister say whether the towns of Wyndham, Port Hedland and Onslow are also receiving consideration?

Senator COOPER:
CP

– I shall be very pleased to obtain from my colleague, the Postmaster-General, the information the honorable senator has asked for.

page 415

QUESTION

TELEVISION PROGRAMMES

Senator ASHLEY:
NEW SOUTH WALES

asked the Minister representing the Postmaster-General, upon notice -

  1. What was the total amount of time devoted by each of the television stations now operating during the week ending 16th March to the following:- (a) one-hour plays: (b) features dealing with crime: (c) western or cowboy features; (d) situation or family comedies: (e) cartoons: (f) dramatic productions not included in the above?
  2. What was the amount of time in each of the above categories produced: - (a) In Australia; (b) Great Britain; (c) United States of America?
Senator COOPER:
CP

– The PostmasterGeneral has supplied the following information: -

The total amount of time occupied by programmes of the tour commercial television stations for the week ending16th March in thecategories specified by the honorable senator is as follows. The figures are given separately for programmes originating in the United Kingdom and in the UnitedStates ofAmerica:-

Programmes in the above categories represent the following proportions of each station’s lull programme schedule: - ATN 33 per cent., TCN 53.4 per cent., GTV 46.5 per cent, and HSV 43.6 per cent. The greater part of the remaining time is occupied with the presentation of Australian programmes of types other than those in the categories specified.

page 416

QUESTION

FLAX

Senator SEWARD:

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

  1. Has the Tariff -Board submitted a ‘report recently on the flax industry? . 2.If so, when is it likely that the report will be available for publication?
Senator SPOONER:
LP

– The Minister for Trade has. advised me as follows: 1.Yes

  1. The report is at present under consideration.. It will bemade available for publication at the earliest opportunity:

page 416

QUESTION

DECIMAL COINAGE

Senator HANNAN:
VICTORIA · LP; NAT LP from March 1974

asked the Minister representing the Treasurer,upon notice -

  1. With reference to the resolution passed by the State Council (Victorian Division) of the Liberal party of Australia on 1st March, 1957, recommending legislation for conversion to a system for decimal coinage in Australia, is it a fact that means havenow been evolved foreffecting such a conversion without disturbing the present value of the Australian pound?
  2. In view of the manifest saving in time and money which would ensue, will the Treasurer consider taking the appropriate steps to implement this proposal?
Senator SPOONER:
LP

– The Treasurer has supplied the following answer:-

The Treasurer has been giving considerable attention to the decimal coinage question and his officers are examining all developments overseas on new systems of currency based on the decimal system. It has been noted that the governments of India and Tonga have’ recently introduced new decimal coinage systems andthat the Decimal Coinage Commission in South Africa is collecting considerable information on the subject preparatory to presenting a report to the South African Government. While the Treasurer is watching these developments’ closely and is also carefully considering proposals being made by individuals and organizations throughout Australia, no decision has yet been madeon the nature of any further action which might be taken to examine in more precise detail the implications of introducing such a system in Australia.

page 416

QUESTION

NATURALIZATION OF ASIATICS

Senator ASHLEY:

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

  1. Is it a fact, as reported, that a Mr. Martin Wang was granted naturalization in. a secret naturalization ceremony? .
  2. Is this gentleman identical with the Martin Wang who was Consul-General for Nationalist China until 1954?
  3. If so-(a)Did he remain in thiscountry after being ordered back to Formosa by his Government?(b) Has he been classified as a political refugee for the purpose of naturalization? (c) Is it not a fact that his Australian residence otherwise can only be dated from the time he terminated his diplomatic appointment, two years ago?
  4. How many other Asiatics have been given full Australian citizenship under similar circumstances, and how many other cases are there of citizenship being conferredin closed ceremonies?
  5. Will the Government insist that in all future cases where Asiatics, are applicants for Australian citizenship their intention must be advertised in the public press, together with the names and addresses of their sponsors?
  6. Will the Minister make available full particulars of the representationsmade in the case of Mr. Wang, together with Ministerial action thereon?
Senator HENTY:
Minister for Customs and Excise · TASMANIA · LP

-The Minister for Im migration has advisedme as follows:-

  1. Mr. Martin Wang took the oath of allegiance, thereby became naturalized, before the Commonwealth migration officer, Sydney, on22nd February, 1957. There was nothing,” secret)’ about the ceremony. Private ceremonies of this kind are not uncommon, being permitted’ upon request by candidates for citizenship who have good personal or other reasonsfornot wishing to attend a civic ceremony.
  2. Mr. Wang was Consul-General f or China in Sydney in 1954. 3. (a) Upon relinquishing the position of ConsulGeneral for China Mr, Wang requested permission to stay in Australia. (b) Hehas not been classified as a political refugee for any purpose ofthe Department of Immigration.(c) . There is no legal or other barrier to diplomatic or consular representatives of foreign governments in Australia counting their residence here,while in such service, towards the residential qualifications, for naturalization.
  3. Australian citizenship has not been granted to any other Asian who has served in a diplomatic of consular capacity in Australia. As mentioned above, the confermentofcitizenship at private ceremonies is not unusual butno details are available as to the numbers of Europeans that have attended such ceremonies. In addition to Mr. Wang, and his wife and son another Asian applicant and his wife, Mr. andMrs. Daniel Chen, attended the ceremony held at the department’s Sydney office on 22nd February . These five are the only Asians who have been naturalized at a private ceremony since the decision to grant naturalization to Asians was given in October last.
  4. The requirement that applicants for naturalization, should advertise in the newspapers their intention , to applyfor naturalizationwas repealed by the NationalityandCitizenship Act 1955. Experience overa period of 37 years had shown that such newspaperadvertisements served no useful purpose and simply added needlessly to the expense of naturalization.The removal of the requirement was recommended by the Australian. Citizenship Convention of 1954and by the Commonwealth Immigration AdvisoryCouncil. It is not considered necessary to reinstate the requirement for Asians. The names and addresses of all persons granted naturalization are published in the’ “ Commonwealth Gazette “. Otherwise the contents of applications for naturalization are treated as confidential and the publication of information regarding sponsors would be contrary to long-established practice.
  5. No special representations were received in regard to Mr. Wang’s application, apart from his own verbal request to be permitted to attend a private ceremony.

page 417

CHILDENDOWMENT

SenatorWRIGHT asked the Minister representing the Treasurer, upon notice -

What would be the estimated cost of increases in- rates of child endowment advocated by Senator Cole in his speech in the Senate on 21st March last?

Senator SPOONER:
LP

– My colleague, Sir Arthur Fadden, has furnished the following reply:-

The cost of the proposal to increase child endowment for thesecond, third and fourth children from 10s. to 20s. a week; for the fifth to 22s. 6d.:for the sixth to 25s.; for the seventh to 27s. 6d.; and so on to a maximum of 40s. a week, is estimated at £42,000,000 a year for children currently entitled to child endowment.

page 417

TELEVISION

Senator COOPER:
CP

– Yesterday, Senator Brown asked me whether any action has been taken for the building of a television station in Brisbane by the Australian BroadcastingCommission or private enterprise. The Postmaster-General has now furnished mewith the following information in reply:-

As previously stated, the extension of television services tocentresbeyond Sydney and Melbourne presents many financial, technical and operational problems, which are now receiving very close attention. It is not possible, at this stage, to saywhen additional Rations will be authorized, nor has anyactionbeen taken to build a television station in Brisbane by either the Australian Broadcasting Commission or a private organization. coal.

Formal Motion forAdjournment.

The PRESIDENT (Senator the Hon. A.M.McMullin)I havereceived from Senator Ashleyanintimationthat he desires to move the adjournmentoftheSenate for the purposeof discussing adefinite matter of urgent publicimportance, namely.-.

Difficulties anddislocation in the coal-mining industry and mining centres duetolack of leadership, vision, and planning by the Commonwealth Government.

Senator ASHLEY:
New South Wales

– 1 move -

That the Senate, at its rising, adjourn till lo-morrow at 11.30 a.m.

The PRESIDENT:

– Is the motion supported?

Four honorable senators having risen in support of the motion,

Senator ASHLEY:

– I desire to direct the attention of the Government, and particularly that of the Prime Minister (Mr. Menzies) and the Minister for National Development (Senator Spooner), to the fact that its policy has caused grave dislocation and disruption in the coal-mining industry. The effect on large mining towns of the unjustified increase of the price of coal in 1951, at the instance of the Menzies-Fadden Administration has been disastrous. During the past two years, no less than 28 coal mines have been closed. Five were closed during the first three months of this year. In 1955. 1,000 fewer men were employed it the industry than in the previous year. Last year, 1,200 men were dismissed from the industry, and in the first three months of ti is year, a further 500 men were dismissed. I expect the Minister for National Development to contend that the fact that so many men have been dismissed indicates that greater efficiency has been attained in the coal-mining industry, and to point out that (here has been no significant increase in the number of unemployed persons registered at a result of the dismissals. That may be true, but the average miner has a spirit of independence. When he loses his employment he generally has some funds behind him, especially if he has been in employment for some time, and so long as he has a pound or two in his pocket, he will not live on unemployment benefit, nor will he rely upon the government to find employment for him. He will search for it himself in other parts of the country. He will travel in search of work, as has been proved in this case when men have travelled from :he northern parts of New South Wales as far afield as north Queensland in search of employment after having been dismissed from the coal industry.

To the ordinary person, to the man in the street, the figures I have cited relating to dismissals add up to a very serious situation. They are particularly important to the breadwinner who has lost his employ ment; to the wife who cares for the family while the husband toils in the bowels of the earth, they are a calamity. They may mean hunger and gloom in the mineworker’s home. By its actions, the Government has completely destroyed the shale industry; and it is also making a major contribution to the disruption and destruction of the housing industry. Now, we find the Minister’s palsied hands stagnating the coal industry of this country. These figures mean nothing to the Minister because they affect only the workers. According to him, there is no crisis in the coal industry. In his view, there will be no crisis until the profits of his friends begin to fall, until the coal barons suffer financially through loss of dividends. When that happens, he will certainly say there is a crisis in the industry.

Senator Hannaford:

– Who wrote that for the honorable senator?

Senator ASHLEY:

– Senator Hannaford could not write it. In the western district of New South Wales, membership of the miners’ federation has been reduced to less than 750. In 1952, it was 2,200. In less than five years, it has been reduced by more than half! It is lower now than it has been for 45 years. It is much lower than it was even during the depression period.

These mass dismissals are affecting our major coal cities and towns. Places like Cessnock, Maitland and other large towns, which depend upon the coal industry are facing extinction. In the Maitland-Cessnock area, 45,000 people are virtually dependent upon the industry. Many of these coalmining centres have no other industries to support their cities and towns. Yet, according to the Minister, there is no crisis! Even during the terrible days of the ‘thirties there was no crisis, according to him and his friends. Because it affected capitalism, that period was called a depression, but during that farcically designated depression period of the ‘thirties, there was a real crisis for the workers in industry and for the members of their families. The children of many of the mine-workers could be distinguished from other children on their way to school because they wore no boots and used a sack for an overcoat. According to the Minister and his friends, there was no crisis then.

The only time when the representatives of capitalism, men like the Minister, recognize or acknowledge a crisis is when profits are falling. When that happens, he is in complete harmony with those whom he represents and agrees at once that there is a crisis caused not by the capitalist system but, according to him, by the workers. The conservatives said that in the 30’s, and they say it to-day when they urge increased production as a palliative for the workers’ misfortune. In actual fact, increased production has brought about these dismissals and has caused the closure of many avenues of employment that were open lo the mine workers. The coal-mining industry, like every other industry that has monopolistic traits, generally manages to protect its profits, regardless of what happens to the workers. That is happening in the industry to-day. The dominating groups, the large companies, are making huge, indeed record, profits and for that reason they, like the Minister, whom they advise, agree that there is no crisis in the industry.

What are the facts? The large companies waited upon the Menzies Government and demanded and secured an all-time record increase in the selling price of coal, which gave an increase in profits of from 450 per cent, to 500 per cent. These companies are left undisturbed to garner the profits provided for them by the Minister and his Government. Only the small mines have gone to the wall. Only the small mines have had to close, and many of them have closed for all time. Even the increase to 6s. a ton in the net profit could not keep them out of the grips of the coal monopoly. The large companies are not worried even by competition from other fuels. That does not reduce their profits. They are also interested in shipping, air transport, steel, metals, mining and other forms of profitable enterprises. That is why the Minister emphasizes that there is no crisis in the coal industry. He knows there is no crisis in the coal industry for the proprietors because he and the Prime Minister have made sure that there will be no crisis for their supporters. They have made sure that there will be increased profits for the coal proprietors.

Only the workers are being hurt to-day, but what does that matter lo Senator Spooner? He would be concerned only if the profits of the colliery proprietors fell; and he has made sure, with the assistance of the Prime Minister, that there will be no fall in those profits. The chairman of the Joint Coal Board, Mr. Cochran, on 30th September last, said that further reorganization of the industry would involve more dismissals. I read in a newspaper to-day that the steelworks in the western district is closing down. That intention has been known for a week, and over 200 men will be affected. In a very short time, the electrification of the western railway line to Lithgow will be completed, and the power house at Wallerawang will be completed before the middle of the year. What prospect of employment is there for those 200 men whose families are dependent upon their finding employment in that district?

Let us examine the position during the last five years. In 1950, the Minister, and the Joint Coal Board, were claiming that coal was our very life stream. There was an immense publicity drive by means oi radio and press advertisements to increase coal production. Advertisements in these terms appeared: “ Coal produces health “. There is plenty of coal to produce health lying at grass to-day - over 2,000,000 tons. It will never be sold, but will be a loss to the taxpayers of this country. Another advertisement read, “ Coal builds homes “. It would be helpful if the slack coal lying at grass could be put to building homes. Another advertisement, in 1950, read, “ Coal supplies gas “. Yes, it supplies gas at a greatly increased price, making it very costly. Other advertisements read, “ Coal drives our trains “, “ Coal is food “, and “ Coal helps the farmers “. The Minister even had recourse to the “ cockies “ to try to boost coal production.

The Joint Coal Board, in its first report, estimated that demand for coal would increase to 17.000.000 tons in 1952. 19,000.000 tons in 1954, and 25,000,000 tons by 1962. During 1952, an assurance was given in another place by the honorable member for Robertson (Mr. Dean), who represents an electorate which adjoins the northern coal-fields, that coal-miners need have no fear in relation to continuity of employment because of the mounting stocks of coal at grass. In 1953, Mr. Cochran said -

There are some people who are talking wildly of an impending crisis. They are doing a disservice to the community. Regulated control will avert all. the hardships.

In 1955, he said -

There is no crisis in the coal industry, nor will there be one. Information available suggests that the market for New South Wales- coal would remain stable for the next few years.

He showed very bad judgment, and he advised the Minister. ‘ In 1956, a Joint Coal Board official informed the Miners Reemployment Committee in Newcastle that no further dismissals were intended for the time being and that employment could be regarded as satisfactory. Yet, retrenchments and dismissals are continuing. The Joint Coal Board is the authority that provides the figures for the Minister. Recently, the board issued figures showing the labour force in New South Wales during 1956. These revealed that 1,200 men had been dismissed during that year and that the net fall in the number of men employed in the industry was 764.

The PRESIDENT:

– Order! The sitting of the Senate is suspended to 8 p.m. Transport is now available to take honorable senators to Government HoUse to attend the presentation of the Address-in-Reply to His Excellency, the Governor-General.

Sitting suspended from 4.3 to 8 p.m.

Senator ASHLEY:

– Before the sitting was suspended, I pointed out that the Minister for National Development (Senator Spooner) had cited figures to boost his own theory that there was no crisis in the coal industry, and to support his claim that the industry had produced record quantities of coal from underground mines with 764 fewer men. That was not a true statement of the position. The net loss of employment in the industry was not 764 but 1,009, and the record quantity of coal was, therefore, produced by 1,009 fewer men.

That fact is revealed by the contributions to the pensions fund to which every miner subscribes. Those figures show a decrease of 1,009 in the period between- 24th December, 1955, and 26th December, 1956. There had been a decrease of 873 in the preceding twelve months.

I challenge the Minister . to refute the. figures that I have cited. Their authenticity establishes beyond doubt the Minister’s capacity for understatement. The Minister, in making a propaganda statement, has displayed a reckless lack of responsibility by completely misrepresenting the position, in the industry. He has used incorrect and false, .figures in; an . attempt to defend the Government of which he is a member.

No .other! organizations in Australia have been favoured with such benevolent treatment as have the coal industry, the shipping industry and the British Medical Association, the last through the Menzies health scheme. Within twelve months of the Menzies Government taking office, the coal proprietors approached the Joint Coal Board for an increase in the selling price of coal. The Coal Board was the established and recognized authority to determine the selling price of coal in Australia. It had all the information, necessary, and access to the balance-sheets of all the mining companies. lt had complete knowledge of the various methods of production. It knew whether coal Was produced by shaft, tunnel or open cut: ‘ - The Joint Coal Board decided that a fair and’ just selling price for coal was 7i per cent, of the capital invested in the industry, with a minimum of ls. a ton net profit. I remind the Minister that that was a minimum. The selling price was determined after all charges, incidental to the industry were.’ provided for, including insurance and diminishing assets. The board refused to increase the price of coal. The refusal of the board did not unduly worry the coal barons who subsequently, through Senator Spooner, arrived at ‘the office of the Prime Minister (Mr. Menzies). Immediately the coal barons were settled in private in the Prime Minister’s sanctum, they knew that their mission had ended.. They knew that their, demands would be met in full.

The Prime Minister instructed the Joint Coal Board to appoint. ,a7 committee to inquire into the selling-price of coal on “the pretext that the then. ‘ prevailing’ price was. not sufficient to provide .an .incentive ito produce more. Not only did the. Joint!, Coal Board receive instructions from the Prime Minister to appoint, ai, committee, but. the, Prime Minister, after- consultation, with”. the proprietors, also nominated two. members, of the committee. I. have here a copy of the letter that was written by. Mir.’ S. -F.. Cochran,. Chairman of the Joint Coal Board,, to’ Mr. E. E. Warren, chairman of the New South Wales Combined Colliery Proprietors Association. He stated - ^

Dear Mr. Warren,

I refer to the discussions which I had with you last .week when I intimated that it was the wish of the Prime Minister that- the Joint Coal Board. should appoint a committee to investigate the price fixation policy of the board, and to make recommendations to the board as to whether the existing policy provides sufficient incentive to the colliery proprietors to increase the output of coal from their mines and, if not, what modifications of existing policy should be made.

As I intimated to you, it is the Prime Minister’s wish that the committee should consist of Mr. Walter D. Scott as chairman, a nominee of your association and Mr. B. H. Nolan the Chief Accountant of the Coal Board.

Both Mr’. Cochran and Mr. Warren have been rewarded in the honours list. As a result pf the Menzies Government’s intervention and the committee’s finding, the selling price of coal was increased from 7i per cent, on capital investment, with a minimum of ls. a ton net profit, to 6s. a ton net profit. The Minister for National Development interrupted me to-day and asked whether I had referred to a 500 per cent, increase in the price of coal. I had referred to an increase in the profit. The Minister is not concerned about the price of coal; he is more concerned with looking after the coal proprietors and the monopolies.

The huge increase in price to which I have referred was granted irrespective of quality and irrespective of whether the coal was mined from the shaft, tunnel or open cut, and without any regard to individual production costs. Some indication of the major contribution made to inflation by the outrageous and unjustified rise in the selling price of coal is reflected in the huge profits that resulted from the increase. In its first year in which the increase operated, Caledonian Collieries Limited increased its net profit from £94,068 in 1951 to £248,129 in 1952, an increase of more than 160 per cent. The company was able to pay off four years of arrears in preference dividends, and then transfer two-thirds of its profits to reserve. A small colliery in the western district of New South Wales had a profit of £1,421 in 1951, which profit was increased to £59,003 in 1952. Net profits, after tax, made by other companies were -

The South Clifton Colliery , is ‘controlled by the J Joint Coal Board: The Minister will rise from his. seat when I conclude and, with a demeanour of importance equalled only by Colonel Nasser, will claim in mournful tones that the:’increased profits have been justified by the expediture of £12,500,000 on mechanization in the coal industry. He will claim that that has been a contribution to the efficiency of the industry. I remind him that every penny that has been spent on mechanization, whether it be £12 or £12,000,000, has been contributed by the consumers. . Every other industry that requires finance for development has to call it up if it has not been provided for in reserves. That does not apply to the coalmine proprietors, who provide funds at election time for the Menzies-Fadden coalition to fight the Australian Labour party.

The DEPUTY PRESIDENT (Senator the Hon. A. D. Reid). - Order! - The honorable senator’s time has expired.

Senator SPOONER:
National’ Development · New South WalesMinister for · LP

– I listened very carefully to Senator Ashley and made notes so that I might be able to reply fairly to him. The first point I wish to make, and it is one of major importance, is that throughout the whole of his speech he at no stage offered a single constructive proposal. At no time did he suggest any one thing that could be done to yield a ‘ better result than is being obtained at’ the present time. The whole of his speech was a series pf destructive comments; there was no looking forward. I repeat that he did not make one suggestion about what could be done to establish a bigger, better and more progressive coalmining industry. In other words, when an honorable senator moves a motion for the adjournment pf the Senate to discuss the coal-mining industry and is unable to suggest what can be done to improve it, he admits indirectly that it is in good shape and condition.

Everybody who has been associated with the. industry knows and admits that it is in good shape. Sales of coal are increasing, time lost- through industrial disputes is declining, export trade is being won, major investment’s -being made in mechanization, and :the . industry is .being improved all round. I repeat that the truth is that the. industry is in good shape and condition.

Let me now discuss the destructive points in Senator Ashley’s speech. He made great play of the fact that the price of coal had been increased. Of course, it has been increased. That was the foundation of a policy which has permitted a successful reconstruction of the industry. The price was increased after independent and impartial investigation by people from within and without the industry who assessed what would be a reasonable margin of profit to encourage people to enter the industry and invest additional capital so that there might be removed from the industry that atmosphere which was the basic cause of continual industrial disputes. It is very significant to note that there was no criticism of that move when it was made in 1951, and that it was not criticized in 1952, 1953 or 1954; but in 1955, when its success became apparent, the flood gates of criticism were opened. It is a case not so much of criticism as it is of pure envy on the part of the Labour party because the job has been done so successfully.

Let me contrast the approach made by this Government with that made by the Labour party. When Labour was in office, price-fixing was the order of the day. Prices control prevented the earning of reasonable profits, and consequently the proprietors would not invest the necessary capital to improve the industry. The proprietors and the men were continually at daggers drawn, and the Communistcontrolled miners’ federation had absolute control over Australia’s fuel supplies. We were constantly short of power, gas, and coal; and Senator Ashley, who was then the responsible Minister, was completely unable to bring the dispute ‘ with the miners’ federation to a successful conclusion. The only policy that was pursued by the Labour party was to pour more and more Government money into the industry, and to walk along the track that was being blazed by the miners’ federation and which in the long run would have lead to nationalization of (he industry. Honorable senators opposite know the whole sorry story, how ineffective that approach was, and what was the result of it. This Government did increase the price of coal, but it reaped good national dividends, made provision for reasonable profits, got efficiency back into the industry, and obtained all the coal the nation needed, the kind it needed, and where it needed it.

Another matter raised by Senator Ashley, which is one of some difficulty and which must be faced, was that the improvement of efficiency in the industry has made it possible to win coal more economically and with fewer employees. From the viewpoint of the industry and Australia as a whole, that is a first-class thing to happen; but it raises great personal problems for the people who are affected. I propose to return to that matter later. One of the few wise statements that have been made by Senator Ashley was made during an argument on a similar matter after I had said that comparatively few people were affected when the total number employed in the industry was taken into consideration. On that occasion, the honorable senator said, “Well, it is a 100 per cent, problem for each of those who are affected “. I agree with that statement, and that is why I propose to return to this point and to indicate the number of men who have been affected and what I most honestly and sincerely believe has successfully been done for them. Men have been displaced, but I believe at very little personal loss.

Nothing is gained by mis-statements or exaggerations. Senator Ashley said that the membership of the miners’ federation in the western district of New South Wales had been reduced to 750 men. That is not so. On 7th April, 1,460 men were employed in the coal-mining industry in the western district of New South Wales, which is almost double the number which the honorable senator quoted. 1 do not blame the honorable senator entirely for his statement. As is the case with so many other key officials in the industry, the miners” federation official is a Communist, and he will do only that which will cause trouble. I repeat that some one has said that there are 750 employees in the western district, whereas in fact there is nearly twice that number. One of to-day’s newspapers has attributed to the same official a statement that in his view only five mines would be operating in the western district of New South Wales by the end of this year. The fact is that there are 24 mines in the district, and all the indications are that the production of coal will continue at about the present level of 30,000 tons a week. Mis-statements by union officials create a problem that we are constantly up against in the coal-mining industry. The coal-miner is a first-class Australian citizen, but one trait in his character that I can never understand is that which causes him to elect Communists to take charge of his union when he knows that once they are elected to those positions their approach is never constructive, but is one of exaggeration and destruction.

The honorable senator criticized rather trenchantly a series of advertisements that were issued by the Joint Coal Board reminding the people that coal built homes, that coal was the source of gas, that coal did this and coal did that. I was rather surprised to hear him refer to these advertisements because I could not recollect them. I did not remember seeing them during my period of office. However, upon making inquiries, 1 found that the reason I did not know anything about them was that they were issued by Senator Ashley himself when he was the responsible Minister. I was then no longer surprised. All I can suggest to the honorable senator is that he should move for the adjournment of the Senate in order to submit a motion of censure on himself, and I have no doubt that he would carry it by one vote to one. I knew nothing of these flights of fancy of the honorable senator.

Let me briefly outline some of the present facts and conditions of the New South Wales coal-mining industry so that the terms of the adjournment motion which reflect upon that industry may be refuted. The outstanding feature is the rising production of coal each year, despite intensive competition from other types of fuel. A second feature is that very large sums of money are being invested in the industry as additional capital to provide mechanization and make it more efficient. A further feature is that after a good deal of trial and many endeavours, at last the stage has been reached at which an appreciable export trade in coal is being carried on. The export income this year from the New South Wales coal-fields will be about £1,500,000. Sufficient orders have already been received to absorb the production for many months to come, and it will not be possible to handle any greater volume out of the port of Newcastle until those orders are filled and despatched. Another very important development is that, as a result of the improvement and efficiency of the industry, production costs are falling. Coal is one of the few commodities of which the price hae been reduced.

The level of employment is a debatable item because, despite the increasing turnover and the lower price for coal, the number of employees in the industry is declining owing to its increased efficiency. This creates new problems. To illustrate the increase in production, the statistics show that in the year 1949 the amount of coal produced was 9,388,600 tons, in 1951. 11,224,200 tons, in 1954, 13,703,700 tons, in 1955, 13,834,800 tons and in 1956. 14,029,900 tons. In each of those years, with one exception, the production of coal from underground mines in New South Wales was in excess of the previous year’s level. In view of a trend such as that, how can a motion of the kind now before the Senate be moved with any justification?

This motion claims that there are difficulties and dislocation in the industry due to lack of leadership, vision and planning. The reply to that is that in the face of the fiercest competition that any fuel has experienced and the expenditure of more than £100,000,000 in Australia on the building of refineries for the purpose of producing fuel oil, the output of coal is increasing year after year. In the first three months of this year, 1957, the increase in output has been substantially greater than it was during a corresponding period in previous years, lt has been so much greater than it was during the first three months of last year that I am inclined to discount the figures, and to wait for a few months to see if the rate of production is maintained.

I mentioned the investment of fresh capital in the industry, and honorable senators may be interested to know that during the last four years the amounts invested were, respectively, £3,991,000, £3,672,000, £5,079,000 and £5,000,000. I suppose that this industry, in New South Wales, has been the subject of more royal commissions and reports than most other industries, and I doubt whether there has ever been a report on it that has not stressed the need for its working methods to be brought up to date by means of mechanization and other forms of development. Money is now. being, invested-.. in the: industry, .during the. .regime of -the… Menzies Government, whereas foE generations before :this Govern. ment; came !into; office the coal-mining industryhad; remained dormant. ;Never: has . it made :such advances as if has done in recent years.

As a result of these improvements, the miner now produces more than he did previously, because he has more up-to-date tools in his hands, and the output per manshift has regularly increased year after year, in keeping with the- reduction of industrial disputes and the increase of mechanization. The production in 19S4 was 3.5 tons per man-shift, in 1955, it was 3.52 tons, and in 1956, 3.69 tons. This production is still below what should be the aggregate because many mines are not yet mechanized and brought up to date. Also, there, are still far too many industrial disputes in the industry. All this has led to a lower level of employment. At the present time, 16,946 miners are engaged in the industry in New South Wales. I know that the miners’ federation has produced one set of figures and the Joint Coal Board another, and I cannot, at this stage, go into the rights or wrongs of the arguments to justify the accuracy of one or the other. However, I have done so previously; and I am quite convinced that the figures given by the Joint Coal Board are completely accurate, and I propose to cite them now.

Senator Ashley:

– They are not accurate; they are wrong.

Senator SPOONER:

– It is nonsense to say that they are not accurate. Last year, the number of employees in the industry fell by 988, and in the first three or four months of this year there has been a decline of a further 774. This means that in the last eighteen, months 1,762; fewer miners have been engaged in the industry out Of a total ,of 16,946. The important point abo.ut this is to know that the Joint Coal Board, the Department of Labour and National Service, the colliery proprietors and the miners’ federation - have all banded together in an organization to ensure that the changes made as a result of mechanization of the mines and other, circumstances, will be brought i about with. a. mini-‘ mum- amount of distress-to. .the persons who are , involved. I pay. tribute to .all. those who have joined in that effort because .at first-class job has been done, a. job of which I am proud to be. the ministerial head. When a mine as to be closed, or a sail has to be shortened* the- men in the mines- are generally told some time ahead. When men - come out ‘ of a mine, the labour exchange scouts around the locality to find vacancies for them until they can be reemployed in the -mining industry. The real position is that all the men who desire to go back to the coal mines will eventually be able to do so because With a labour force of from 16,000 to 17,000, the normal vacancies due to deaths,, retirements and withdrawals run out at about 2,000 a year.

The miner displaced, from one mine, if he wants to go back to the industry, although he might not get back immediately,, has not long to wait before a suitable vacancy, -occurs. One of the good things; about the coal-mining industry today. is the fact that men want to go /-back to the coal mines, whereas in 1947, when Labour was in office, no ‘ inducement could attract sufficient employees to the industry.. The whole atmosphere in the industry has changed, and the men themselves willingly go back to it. The proof of the pudding is in the eating.

One of the bad things - 1 was going to use a, stronger term - is the success of the Communist leaders in the miners’ federation in telling a false story about lack of employment, not only to their own members; but also to the people generally. The fact is that for the first week in April only 31 people throughout the whole of the coalmining industry in New South Wales were registered for unemployment benefit and only 152 men in all were seeking positions in coal ‘ mines. Bearing in mind the fact, as I said previously, that during -the last eighteen months- the aggregate number of miners -has been reduced by 1,600, that i? a. situation of, which, I think, with some justification, every one associated with the industry has some right to be proud. 1 admit,, as Senator Ashley has said, that the numbers may be . greater because the coa. miner, is; a< pretty- independent sort of fellow and. does not. always register when he . becomes ‘ unemployed. . He has more hair ;on his chest than some others, which ist a: tribute to him;, and that is characteristic; pfc the. coal-miner.

We Hear .quite frequently that, coal r.is being .beaten as a fuel by bil. Let me: quote the -relative costs, of coal/ and oil 1 fuel expressed in British. Thermal -Units. . In Sydney; the equivalent ton of coal costs £?’ 9s., -whereas oil costs £16 14s, 6d. In Melbourne, the- cost;1 is- £11 16s. for coal and £16 14s. 6d. for oil; and in Adelaide, the price for coal is £10 14s. and for oil £1 6 ‘7s. Of course, the Communists are saying that we should prevent the importation of oil into Australia because oil is destroying the coal industry. All they are concerned’ about is to cause aggravation in order to break down industrial relations which are constantly improving and strengthening the industry.

Senator Ashley:

– makes a great song and dance about the profits of the coal-mining companies, and he quoted the Caledonian company in particular. I have no brief for the Caledonian company; I could not eVen tell honorable senators the names of its directors. However, I do know that in the last five years that company has produced 6,500,000 tons of coal, which is no mean . contribution to the total coal supplies of Australia. That company paid a dividend on its capital of only 4.8 per cent., which is. less than the profit allowed by the price-fixer for the Joint Coal Board. I suggest to Senator Ashley that he should check his facts and not be taken for a ride by people who are willing to tell him any .story which he is prepared to put over the air in order to get a little notoriety for himself.

What are the basic weaknesses of the coal-mining industry? lt is a good thing to consider some of its basic weaknesses; because everybody in this chamber knows that this adjournment motion has been moved by Senator Ashley because a byelection is to take place next Saturday in a coal-fields electorate of the New South Wales Parliament. Let us face the facts of life as practising politicians as well as great statesmen. What are the present weaknesses, of the coal-mining industry in New South. Wales? The. first great weakness is the ^difficulty of obtaining markets because of the high freight charges; on the New South Wales- railways. I have ‘ the figures here, if l can only put my hand on them in -.the limited time which is available to me: - It costs -44s. lOd. a ton to. mine coal at Muswellbrook and 34s. 7d. to take it by nail.’to; Newcastle. That is a weakness due: Jo -.the .complete incompetence of the Cahill Labour Government , in New South Wales. Railway freights are out of order and too high. ‘ -

The second great weakness is’ the state of .the- facilities, at the port of Newcastle, which are a disgrace to- .any government which has within its. boundaries an industry as big. as the coal-mining industry in New South Wales. The cranes by which coal is loaded on boats are,, on the average, from 40 to.. 50 years old. I have been informed, and I believe it, to be true, that if the present cranes were replaced with modern machines the cost of shipping coal to Sydney, Melbourne or Adelaide would be reduced- by as much as 10s. a ton. In these days of competition one would think that the New South Wales Government, with some six or seven of its members recruited, from the coal-fields, would at least look after their constituents by providing modern facilities to service the electorates which keep it in power. But, of course, it is trie, old, qld story. The New South Wales Government knows that it has the support ‘ of .the ‘coal-mining industry; it knows that the coal-miners vote Labour, and will keep it in power. Therefore, it treats with contempt those electors who return the members who constitute its majority.

I .come now to the last point. I am proud of the progress that has been made in. the coal-mining industry, but one of the things of which I am most proud is the fact that as this progress has been made the funds which this Government has invested in the industry have been reduced appreciably. At 30th June, 1952, four and a half short years ago, the Joint Coal Board owed” ‘this Government no less than £13,465,’202. At 31st March, a few days ago, that debt of the Joint Coal Board had been- reduced from £13;400,000 to £1,800,000. So we have recovered, in four years, some £11,600,000. I put it to the Senate that if the honorable senator who criticizes me, and who himself was at: one stage the responsible Minister in relation to coal in a Labour administration, and is the author of a pamphlet requesting people to use. more, coal, had -continued the policy that . -he adopted, there .would have resulted; inevitably, a bigger, investment by the Government in, an industry infinitely less efficient than the present industry, which is able to supply coal of any size or quality needed anywhere in Australia.

The DEPUTY PRESIDENT.- Order! The Minister’s time has expired.

Senator McKENNA:
Leader of the Opposition · Tasmania

– The Minister for National Development (Senator Spooner) devoted the whole of the time allowed to him during this debate to stating what had been accomplished in the coalmining industry. Nobody on this side has denied, or will deny, that there has been greater production and greater output per man-hour shift, that fewer employees have produced more coal, that there has been extensive mechanization in the industry, that there are ample stocks, and that there are improved industrial relations in the industry. Senator Ashley does not deny those things, nor do I, and I say at once that everyone is exceedingly happy at those results. But it amazes me that the Minister should take to himself and his Government all credit for that very happy position. We should have expected a word of thanks to the Joint Coal Board, which was the creation of two Labour governments. I should have expected him to admit that that board had played a major part in producing those happy results. The Minister might well have paid a tribute, also, to the coalminers, without whose active and generous co-operation not one of these results would have been achieved. These things are all to the good, when considered in their cold, economic aspects, but I point out that the Minister ignored other economic and national aspects in this matter, some of them involving very deep human considerations. I think that this Government, as far as the coal industry is concerned, has fumbled a very great opportunity for this nation. Its handling of the coal industry shows, more than any other thing, that it has lost completely whatever creative force it ever had.

Let me list some of the matters to which the honorable senator made no reference. Since 1952, coal production has been deliberately restricted in Australia. Many mines have gone out of action. The price of coal is outrageous. The effect of that on inflation is colossal. It has increased manufacturing and transport costs from one end of Australia to the other. There has been a falling off in interstate markets for New South Wales coal. In 1945, New South Wales coal supplied 76 per cent, of the market in Victoria, New South Wales and South Australia. That figure has fallen to 60 per cent, to-day. Other fuels have now come into the picture.

Senator Henty:

– There has been a great success in the export market.

Senator McKENNA:

– Despite what the Minister for Customs and Excise (Senator Henty) says, we cannot sell coal on the export market. I shall deal more fully with that aspect of the matter later, and I shall show that there has been a dismal failure in that respect. We have reached the stage to-day at which, while coal is available to all consumers who need it, many cannot afford to pay the price. That is the basic trouble in the coal industry to-day.

Senator Henty:

– What do they use in ito place?

Senator McKENNA:

– Many men have been displaced from the industry. Senator Spooner referred to the fact that the coalhandling equipment at Newcastle, is out of date, resulting in inefficiency. I remind him that’ his Government has a joint responsibility, through the Joint Coal Board for activities connected with the coal industry in New South Wales. That is one of the strong grounds on which we base our allegation of lack of leadership by this Government. It has sat supinely by for eight years, content to see no change made in the very stuffy and inadequate coal-handling facilities at Newcastle. Senator Spooner should have been ashamed to mention that matter. The mere mention of it was a supreme condemnation of the outlook of this Government towards such a fundamental and vital industry.

What has been done in this country to develop synthetic fuels? What alarms me, and alarms the Opposition generally, is the increasing dependence of the economy, and of Australian industry, upon oil, which will disappear in an emergency - disappears very quickly, with nothing to replace it. We are faced with the fact that many mines have closed, and that on the coal-fields, particularly in the north - Maitland, Cessnock, and Kurri Kurri - there are no alternative industries to pick up the slack in employment in the coal industry. When that lags. the whole of the employment position in the area fails. There is distress throughout the whole community. Surely it is a reflection upon this Government, which has had the advantage of State co-operation to the fullest degree, that there should be areas of this kind where there are no alternative industries.

I want now to deal with some of these matters in detail. I have before me a list of matters to which the honorable senator did not refer - and for a very good reason! It is the duty of the Opposition to direct attention to the many aspects of the coal industry that show lack of vision, planning and leadership, which Senator Ashley alleged when moving for the adjournment of the Senate to discuss this subject as a matter of urgency.

Let me deal with the question of exports. Senator Spooner said that this year we would sell £1,500,000 worth of coal overseas. What is that? It is considerably less than one-third of a million tons of coal, which is quite insignificant, having regard to our coal production and to the fact that we are closing mines and sacking men. Coal is a much-needed commodity in the world, and it could be a very good earner of overseas credits if we made a live approach to this problem. If the Minister will turn to the last report of the Joint Coal Board he will see that the board has no pride in what has been done in the export trade, and little hope for its future. The report on this phase of the industry is one long lament. The Minister deceives himself when he points to that matter with pride.

Senator HENTY:
TASMANIA · LP

– What about the rail freight of 34s. a ton?

Senator McKENNA:

– That is one factor, but the other factor to which the Joint Coal Board referred, and which the Minister did not mention - the Joint Coal Board pointed to it as the chief obstacle to export markets - is the matter of high overseas and interstate shipping freights. This Government is wholly responsible in that connexion. There is the real failure. As the Joint Coal Board points out very clearly in its report, rail freight is an ingredient, but the great item mentioned by the board is overseas and interstate freights by sea. Senator Ashley has dealt at length with the other factor, the outrageous price of coal itself. They are the factors that kill it. Freights are one ingredient, but a minor ingredient, against considerations of price and freight charges. The body to be indicted for the freight charges is the Commonwealth Government alone, and nobody else. It has complete and absolute responsibilities in these fields, and the State has none.

To-day, in the Senate, we heard a question about the building of tankers for oil. The Minister for Shipping and Transport (Senator Paltridge) indicated that he was having discussions upon that topic. I commend to him as a practicable suggestion, if he is prepared to entertain the thought, that he give some thought to the provision of colliers for the interstate transport of coal and, above all, for the overseas transport of coal. If he is giving consideration to tankers, let him also consider colliers. If the Government is interested in developing the overseas export trade, there is a live and practicable suggestion for it to adopt.

Now, let me say a word about the price of coal itself. Senator Ashley touched upon it, and I want to develop the theme a little. I am dealing now with the wholesale prices of coal, pit-top, free on rail. I take my evidence from the Commonwealth Statistician’s figures as published in the Year-Book. Those figures show that in 1949, when Labour was in office, the price of coal at that level was 30s. 3d. a ton. By 1952, after the introduction of the prices policy of the Minister for National Development (Senator Spooner), of which he says he is so proud, it had risen to 61s. 2d. It had more than doubled in the first three years of office of this Government. Those figures cannot be denied. They are there for everybody to read. That huge increase in the first three years of office of this Government can be attributed directly to the prices policy of the Government. The Government went to the mine-owners and said, in effect, “We will guarantee you 6s. a ton profit, or 25 per cent, on your capital cost, whichever is the greater “. The Minister for National Development stood up “here to-day and said that was never criticized by the Labour party. To that, I give him a flat contradiction. If he will turn to “ Hansard “ of the very year in question- 1952 - he will find that an adjournment motion was moved on that very matter on nthSeptember, that the debate was led by Senator Ashley and that the Minister defended himself in it. Yet, he stood up here to-day and said there had never been an attack on his prices policy! Not only was one made then, but also other adjournment motions were moved in subsequent years, the latest being in October, 1955. The Minister forgets very easily when it suits him to forget.

Let me follow the price from 1952 onwards. Company taxation rates were reduced in 1954, and the Government said to the coal-owners, “ Now you can only have 5s. a ton, or 20 per cent., or thereabouts, as your profit on capital “. One would expect that, with a reduction of ls. a ton in the profit, the price would come down by ls. a ton.- But what happened? Instead of coming down by Is. a ton in 1954 from 59s. 3d., as it then was, it went up to 59s. 9d. a ton. With ls. a ton less profit, it went up to 59s. 9d. a ton! It climbed.

Senator Henty:

– What was the wage rate at that time?

Senator McKENNA:

– I .am not interested to discuss that at the moment. Wages moved, of course, but let me indicate that that reduction in profit is not reflected in the slightest degree in any of the subsequent years at all.

Then, we get to a comparison with the United Kingdom, with which we want to compete for exports. In Britain, in 1949, the price of coal was 47s. 1 Id. a ton sterling. By 1952, the comparable year in the case I am putting, it had gone to only 57s. 3d. a ton, a rise of 21 per cent., whilst the Australian Government had a rise of 100 per cent, in the price of coal. How could Australian coal, in those circumstances, compete on the export market with British coal, even allowing for distances? When one sees the price level at 59s. 2d. in 1956 - those are the latest figures- where is there reflected any kind of reduction consequent upon the reduction made in . 1954? Where is there any benefit to the people of Australia from the vast mechanization df the mines, costing £12,5.00,000? : That was ;the figure won by the coal-owners out of profits they had made and ploughed back into! the industry. We -were fold that mechanization would keep -the -price down-. Let somebody on the Government -side ‘show me where there is any real trend in 1 that- direction. They can point to a few pence; and ‘that is all. So, the consumers pf Australia, in higher costs, have -paid and p’aid. “ In effect, they have paid £12,500,000 into mechanizing the mines; and .they still pay the same old high prices, thus keeping profits up.

The employment question has been well canvassed. I want to say a word upon what is the most important matter of all. I refer to our -dependence upon oil. If we have a war, it will be with the Russian bloc. According to information before the United States Senate Committee, the Russians have at least 4’50 submarines1. They would be able to cut our sea lanes, blockade every Australian port, and send wolf packs roaming all over the world. And, if there is a war, the one -tiling that will be cut off instantly will ..be oil. The moment that is cut off, Australia, will be finished. She will ‘be defenceless; and she will be starved.

What is the Outlook of this Government in respect of the- production of synthetic fuel? Why does it not take a lead from South Africa? That country has built a synthetic fuel plant. It completed it in 1955, at a cost of £30,000,000. That plant is now producing 76,000,000 gallons of oil and chemicals per annum. That quantity could make all the difference between survival and extinction to Australia in a fast atomic war.

The DEPUTY PRESIDENT. - Order!

The honorable senator’s time has expired.

Senator ANDERSON:
New South Wales

– If ever a motion could be described as political humbug it is the one under discussion now. It is rather significant that the Leader -of the Opposition (Senator McKenna) has felt constrained to step into the breach to save the blushes of Senator. Ashley. Let me answer, first, the very last point the Leader of the Opposition raised. I refer to the extraction of oil from coal. It should be said right at the outset that dub to the initiative of the Commonwealth Government -a committee of research Has already been ‘ set up. On that committee the following bodies are repre.sented:The New-South Wales Government, the’’ University of Sydney, the New South

Wales University of Technology, the Australian Coal Association Research Limited, the Commonwealth Scientific and Industrial Research Organization, the Department of National Development and the Electricity Commission of New South Wales. That committee has the specific job of trying to find the technical answer to the problem of extracting oil from coal. So much for the final argument adduced by the Leader of the Opposition.

For purely party political purposes, a very important debate on foreign affairs has been interrupted in order that the Labour party in this Senate may attempt to redeem the New South Wales Labour Government in the situation in which it now finds itself. The fact of the matter is that the Labour party in New South Wales has fallen from grace in the Newcastle district in which the northern coal-fields are situated. Because of that, and because the Labour party realizes that a by-election is to be held next Saturday in an electorate in that district where the people are becoming wise to them, honorable senators opposite suddenly try to play the old game of attempting to shift responsibility from the State Labour government, where it properly lies, to the Commonwealth Government. Honorable senators opposite remind one of the old actor who has only one tune on a violin; they have played it so often that everybody knows it and now nobody takes it seriously. Senator Ashley this afternoon made an extraordinary contribution, a harrowing story of the coal-fields from 1930. What he did not tell us was that during those dreadful years - and they were dreadful years - we had a Labour government in New South Wales and for some of the time we had a Labour government, the Scullin Government, in the National Parliament. Nor did he tell us of the difficulties which caused a Labour Prime Minister, Mr. Chifley, of fond memory - particularly for the Opposition, politically- to act against all his principles and convictions and put Australian troops into the coal-fields. We did not hear any part of that story. Nor were we told of the extraordinary position With which this Menzies Government was confronted on assuming office, when Mr. McGirr and his political companions promised the people of New South Wales the sun, the moon, and the stars, and sent them home to bed in the dark. We did not know from day to day how we were lo get home. In the winter, we knew that the lights would go out. The Bunnerong power station, which was supposed to be generating the power which industry needed, was always waiting for the next coal train from Newcastle to replenish its stocks. It did not have at any time more than a train load of coal with which to generate the power needed to keep industry thriving in New South Wales. Senator Ashley told us nothing about that. It is an historical fact that very often when coal did arrive on an isolated goods train, the overburden was mixed with the coal.

Senator McKenna told us about the loss of the coal market to New South Wales. Of course, New South Wales lost the coal market. Is it suggested that the intelligent States should stand by and be slowly starved to death, as their industries could not thrive because of failure to get New South Wales black coal. What did the other State governments do? They did what any intelligent government would try to do. They found coal in their own States. That is the reason for the loss of the New South Wales coal market. The story of the industry under Labour’s administration is there for everybody to study. Industry in New South Wales, and in the other States which depended on New South Wales coal, was slowly grinding to a halt when this Government came into power. The other States , quite properly sought coal within their own borders. Because of the shocking system of government prevailing in New South Wales, they had to settle for coal which was not as good as New South Wales coal.

This Government’s record in relation to coal is magnificent. Gradually, by government influence and co-operation, we have brought the cOal industry back to a position’ of soundness. In the coal industry, as in other industries where efficiency is increasing, there is a movement in employment. It is quite obvious that that movement is not peculiar to coal. In every major industry we are confronted by automation. In the coal industry we have mechanization and pillar extraction, and these developments have to be faced. To suggest that the industry lacks leadership merely because there is small movement in employment is completely absurd. If we are honest, we must admit that these problems arise in every industry.

Mention has been made of the export of coal. Newcastle is the only port for the export of coal from the northern coal-fields. The plain fact is, as the Minister said to-night, that that port cannot be used for increased exports. Whose fault is that? We hear the monotonous cry again, “ The Commonwealth is to blame “. The truth is that the Labour Government of New South Wales is responsible. It has fallen down on the job, and relaxes in the complacency that comes from having blue-ribbon Labour electorates in which there is no need to spend money, and Newcastle has had to pay the price. But now the tide is turning and Labour supporters are becoming afraid. Senator Byrne, who is interjecting, knows the principles of federation. He knows what is contained in the Constitution and where the responsibilities lie. He knows that beyond a shadow of doubt the responsibility for the Newcastle port is vested in the New South Wales Government. 1 can tell honorable senators about it, because I have been there. I know that in the port of Newcastle there are about seven authorities responsible to the State Government, and all are trying to manage the port. The New South Wales Government has not the brains to put the port under one authority. If it did the problem might be different. I repeat that within the framework of the New South Wales Labour Government administration about seven authorities are trying to manage the port of Newcastle. So long as the port and harbour facilities are left in their present condition, it will not be possible to export more coal. It is true that the coalowners realize the hopelessness of the facilities there. They have asked the New South Wales Government to allow them to put the port in order. If the port is put in order considerably more than 1,500,000 tons of coal will be exported from Newcastle.

The adjournment motion which we are considering to-night is a shocking example of political nonsense. We have the responsibility of continuing a very serious debate on foreign affairs, but a discussion on the leadership of the coal industry is interposed, although the leadership of that industry in New South Wales is clearly the responsi bility of the State government. That government has failed to do its job. lt is true that people from overseas are reluctant to establish industries in New South Wales. It is true that Mr. Bolte, in Victoria, and Sir Thomas Playford, in South Australia, are from time to time capturing big new industries which, by all the considerations of convenience, geography, and services, should go to New South Wales, but do not because of lack of foresight, common sense and the application of sound principles. That state of affairs will continue as long as we have a Labour government in our State.

This motion should get summary treatment in this place, because the truth is that the coal industry is in a better and sounder position than it was some years ago. We have coal at grass, which we never had during the federal Labour regime. Formerly we had to wait for the miner to pick out the coal, then rush it by train to Bunnerong, some hundreds of miles away, so that industry could get power.

Senator Robertson:

– And so that housewives could cook.

Senator ANDERSON:

– So that housewives could cook, and put the children to bed under reasonable conditions: Those conditions have gone to-day. In the past, we had a completely chaotic situation. The industry has been put into a sound position, and I congratulate the Minister on the part he has played. I congratulate also the Joint Coal Board. Never let us forget that the Joint Coal Board is the joint creation of the Federal and New South Wales Governments. Far from criticizing the Federal Government, we should direct our criticism to the Labour Government of New South Wales.

Senator GRANT:
New South Wales

– To-night this Government has done what it has always done .since it has been in office, lt has jumped from one thing to another as a grocer’s cat jumps from bag to bag. Last week we were dealing with the housing problem. The Minister for National Development (Senator Spooner) said then that there was no housing problem. Of course there is no housing problem for him. Now he has stated that there is no problem in the coal industry.

It is extraordinary to hear the contradictions of the Minister. For years we have been told again and again that the trouble in the coal industry has been caused by the Communists. I have heard the Prime Minister (Mr. Menzies) say again and again that because of Communist leadership of the seamen, the wharf labourers and the coalminers in particular, the industries concerned were inefficient and uneconomic. He said that the Communists were putting the brakes on those industries.

Lo and behold, the Minister for National Development has told us to-night that all the coal-miners are great fellows. They work marvellously. They have produced so much coal that they do not know what to do with it. The Minister cannot back his opinions both ways. He will have to make up his mind whether the Communists are doing what he and his leader have suggested or whether what they have said before is untrue, and that the Communists have no influence at all.

Conditions were so bad that the Minister suggested at one time that Indian coal should be imported. To-night, the Minister did not say anything at all about something that I believe he should do - that is, to use all the resources of the Government to discover how the by-products of coal may be used efficiently in the interests of Australia. I remember during World War I. that the Germans were running submarines across the Atlantic with dyes and other goods made from coal. Since then, much information has been gathered about the byproducts of coal. I do not claim to be an authority on this matter, but I know that several reports have been written on it, and I have one in my hand. It was written not long ago by Professor R. Kiar and doctors R. H. Buchanan and G. H. Roper of the School of Chemical Engineering, New South Wales University of Technology. They have set out in a brochure what can be done with coal, but so far as I can see, not one of their suggestions has been put into practice. They have stated -

Methanol or methyl alcohol which used to be commonly known as wood alcohol because it was distilled from wood, is now synthesized from carbon monoxide and hydrogen, which are products of the water gas reaction, using steam and coal or coke.

The report states that this enterprise could not only reduce imports by as much as £50,000,000 a year, but could also market some of its production overseas. If a war broke out, we would be held to ransom by the oil companies. If the latest fight in Queensland between the Premier, Mr. Gair, and the oil companies resulted in a victory for the oil companies, Queensland and other parts of Australia would be in the hands of the coal monopolists. Of course, they will not beat Mr. Gair, but that would be the position if they did.

I point out that the Minister, in a very able speech, dealt only with what suited him. That is politics, but he did not once deny the statements made by Senator Ashley about the enormous profits that have been made by the collieries. Neither did he deny how much the price of coal had increased since this Government was elected to office.

Like most Australians, I have tired of hearing figures cited to show how much this cost and how much that did not cost. We are tired of it because this Government has the currency of the nation in such a state that nobody has any real understanding of these claims. A reference to 25s. means one thing to-day and something else to-morrow. If there is no planning, we pass from one phase to another only to find that the last position is° worse than the first. I have heard the Minister say over and over again how well the people on the coal-fields are doing. Probably they are better off than they were because I have known them to be very badly off, but it is a serious matter when men have to leave their .homes and jobs. The Minister has cleverly pointed out that not. many of these men have reported themselves as unemployed, but the ordinary man does not tell everybody that he is out of work. He does not register as unemployed, and the figures that the Minister had produced in that connexion are worthless.

I repeat what I have said before: We cannot come to any logical conclusion about anything until we stabilize the currency. All else is mere talk. This Government was elected to office in 1949 because it promised that it would restore value to the £1. If any one had told the people in 1949 that prices would be as high in 1957 as they are now, nobody would have believed him. Senator Ashley has revealed to us the extent to which prices and profits in the coal industry have risen. It would be remarkable if they had not risen. The economy has deteriorated so much that it is like porous plaster; it is full of holes.

We .cannot do anything until we stabilize the currency. There is not an intelligent man or woman in Australia who is not fearful about the economic situation. It does not matter what is his station in life. If a man has a few pounds, he asks what they are worth. It is time that this humbugging, peripatetic Prime Minister was brought to earth. He has not only ruined the currency of Australia but, to a large extent, has succeeded in doing the same thing to Great Britain also. Its currency has had such a shock that the United States of America has gone to its rescue, waived some of its debts and granted loans.

Senator Ashley stated that the profits of the New South Wales Mining Company rose from £17,545 in 1951-52 to £49,690 in 1952-53. The profits of Commonwealth Collieries Proprietary Limited rose from £12,524 to £57,773 in the same period. That is called prosperity. Practically every time I rise to my feet in this chamber I repeat that we cannot deal effectively with wages until we know what the currency is worth. I was telling my colleagues only to-day about a friend of mine. I used to ask him how things were going with him. He was a fairly good economist. He told me that, when the Chifley Government was in office, people in Singapore and other places used to say, “ Give me an Australian £1. 1 do not want an English £1 “. I asked him, “ What is the position to-day? “ He said, “ You don’t need to read Karl Marx, Ricardo or Adam Smith to know how things are. Take your currency to an Indian money changer and ask him what he will give you for it “. That is the test. Do you know what he was told only a week ago? He was told, “ Take your £1 back; it is no good “. The fact that a man is getting high wages means nothing if we do not know what it costs to live.

What is the use of the Government wasting its time dealing with mining bills, arbitration and the fixation of wages unless it can stabilize the currency? I should like Senator Spooner or another member of the Government to tell me what is the Government’s plan for stabilizing the currency? How does the Government intend to get houses built? What is the use of increasing wages when thousands of people who are looking for houses know that already prices are so high that they cannot buy them? It .is a .case of the blind leading the blind. To-night we happen to be discussing conditions in the mines and the way in which the Government has handled the coal-mining industry. Last week we were discussing housing, and next week we might well be discussing age pensions. All these things are interwoven. For the last ten years, the Government has lived on the lie that if it was returned to office ‘V would put value back into the £1. The press has acquiesced in the Government’s attitude; it is leading us up a blind alley, too. I repeat that I should like Senator Spooner to tell us how the Government intends to stabilize the currency. What is the use of telling a man that he will receive more money if it is not going to be worth any more? The Minister will agree that, whatever measure has been introduced, I have never shifted my ground but that I have always argued that the yardstick is this: What is the money worth? Every day it is worth less than the day before.

The public servants, the miners and the rest of the people ask, “ What is the use of talking about prosperity and saving? Who is going to save money when it is worth nothing? “ Five or six workers who live in one house are doing all right, but a man who has a wife and two or three children has never been so badly off. Honorable senators opposite are shaking their heads as though they do not believe it. I can recall when an ordinary working man with a wife and two children could buy fruit, but can he do so to-day? I do not think he can. I was born in Aberdeen, so if honorable senators opposite can tell me where a working man can buy fruit, they may depend upon it that I will go there too. Does one see a worker eating peaches nowadays? I can recall when he used to be able to do so. I repeat that the position is all right where there are five or six single persons living in one house and bringing home £60 or £70 a week. It is time that this nonsense about the Government having arrested inflation ceased. I repeat that it is a case of the blind leading the blind.

The ACTING DEPUTY PRESIDENT (Senator Pearson).-!-Order! The honorable senator’s time has expired.

Senator SCOTT:
Western Australia

– We have before us a motion for the adjournment of the Senate to enable us to discuss a definite matter of urgent public importance, namely -

The difficulties and dislocation of the coalmining industry and mining centres due to the lack of leadership, vision and planning by the Commonwealth Government.

We have just listened to a speech delivered by Senator Grant, in which he forgot to mention the word “ coal “. He commenced by referring to housing, then spoke about the pensioners and the Government’s lie about putting value back into the £1, and concluded by saying that to-day a worker cannot buy an apple, a pear, or even a peach. 1 think we should compare the conditions that obtained in 1949, when he was a member of the previous government, with those that exist to-day. I should say that the people of Australia have never been more prosperous than they are to-day. In 99 per cent, of the homes of the workers one is able to see all the facilities that are necessary to provide them with comfort - including refrigerators, which most people didnot own in 1949, sewing machines, washing machines and every other electrical device that they can obtain. But what was the situation in 1949 when Labour was in office? Could one buy anything from off the top of the counter? Could one buy a washing machine or a sewing machine? No, one could not! One had to put his name on a list and wait for several years for the particular article to become available. One could not buy such items because there was insufficient coal available in Australia to produce the power needed to manufacture the necessary steel. In 1949, Australia produced 4,000,000 tons of coal less than it required, and the Labour Government could do nothing about it. Yet, to-day, we have witnessed the audacity of Senator Ashley, who in 1949 was the Minister in charge of coal production, in rising and moving what is, in effect, a motion of censure of the Government because a few coalminers are unemployed. When the honorable senator was Minister in charge of coal production in 1949, 118,000 people were in receipt of unemployment benefit. To-day, only 13,000 are receiving unemployment benefit.

Senator Ashley:

– What rot?

Senator SCOTT:

– The honorable senator, too, could obtain those figures from the Department of Labour and National Service if he wanted them. In other words, in 1949, when the government of which Senator Ashley was a member was in office, 4 per cent, of the workers of Australia were unemployed, whereas to-day only .3 per cent, of the working population is unemployed.

Senator Toohey:

– That is. almost deliberate lying.

The ACTING DEPUTY PRESIDENT. -Order!

Senator SCOTT:

– I have given a comparison of the conditions which existed in 1949 with those existing at the present time. Senator Ashley mentioned the Caledonian Coal Company, and said that it made a profit of £200,000 last year.

Senator Ashley:

– I did not say that it made that profit last year.

Senator SCOTT:

– The fact is that this company, over the last seven years, has produced 6,500,000 tons of coal, and the annual dividend yield on its paid-up capital has averaged 4.8 per cent.

Senator Ashley:

– What were the profits made?

Senator SCOTT:

– The honorable senator can obtain these figures, and he cannot deny that they are true.

Iiic ACTING DEPUTY PRESIDENT. - Order! I ask that the honorable senator be heard in silence.

Senator SCOTT:

– Does Senator Ashley object to a company making a 4.8 per cent, profit on its paid-up capital? A senator in this chamber is a director of a company that has been advertising throughout Australia that it is willing to pay 8 per cent, for money. I do not hear interjections from honorable senators opposite when I make that statement, yet Senator Ashley declares that a company is making too much profit when it is receiving a yield of 4.8 per cent, on its paid-up capital.

Senator Ashley:

– The honorable senator wants to make profits out of the Japanese.

Senator SCOTT:

– Why mention the Japanese always? I am not ashamed of honest profit-making, but the honorable senator ought to be ashamed of some of the things he has said to-day. The coal-mining industry in Australia should be developed on sound lines, but the Commonwealth Government can only play its part in doing this. The Government of New South Wales must play its part also, but it is not doing that at present. As an example, the freight on coal from Muswellbrook to New South Wales is about 47s. a ton. The loading facilities at Newcastle are in bad condition, and it has been reliably stated that if they were properly mechanized the cost of loading could be reduced by at least 10s. a ton. There are evidences of the way in which the New South .Wales Labour Government is holding back this vital industry. The revenue from export coal is now about £1,500,000 a year, but that could be increased considerably if the New South Wales Government would charge lower freights and provide proper loading facilities at Newcastle. At Gladstone, in Queensland, by means of mechanized plant, ‘such as a conveyor belt, 6,000 tons of coal can be loaded and trimmed by one man in 24 hours. Private enterprise at Yampi Sound in Western Australia - the Broken Hill Proprietary Company Limited - has provided mechanical means of loading 10,000 tons of ore on to a ship in a little over ten hours. The cost of loading at Newcastle is almost prohibitive.

Senator McKenna said that the price of coal in Australia had risen to such an extent that this country could not compete with other countries. 1 have looked at the “ Commonwealth Year-Book “ and found that the cost of producing a ton of coal in New South Wales is 69s. 3d., but in England it is 79s. sterling. As a result of mechanization in coal mines throughout Australia the the cost of production over the last two years has been reduced by 4s. a ton. Australia has unlimited reserves of coal, and it has been estimated that about 56,800,000,000 tons is still untouched, most of if in New South Wales. If that State were governed by a non-Labour government, with an active and a realistic outlook, the export of coal could be increased by 1,000,000 tons a year, and Australia would then be in a better position to compete with Great Britain or any other country. The reason that Australia can compete with other countries now is that since the Menzies Government came into office many mines have been, mechanized. In the last three years, approximately £17,000,000 has been spent on mechanization, and that is why the cost of producing coal has been reduced by 4s. a ton. The cost of producing other commodities has risen. 1 say again that if New South Wales had a sympathetic government that would really care for the interests of the industry and those employed in it, the output of coal, with mechanized production, could be enormously increased, and the return from export coal would be far greater than it is now.

Senator McKenna complained that the Government has not paid tribute to the Joint Coal Board or to the employees in the industry. 1 assure the honorable senator that the Government has a high regard for the work that the Joint Coal Board has done, and also for all employees on the coal-fields. Recently, I had an opportunity to inspect some of the bigger coal mines of Australia, and I found that because they were mechanized, and working conditions improved, the miners were eager to get on with the job of producing coal. They are happy in their work because they have a greater sense of security. Mechanization has been the salvation of the coal-mining industry. Coal has had to compete with oil and other forms of power-producing fuel. Electricity is now being produced cheaply from the various hydro-electric schemes in Tasmania, Victoria and the Snowy Mountains. Large oil refineries have been established at various points in Australia, and the oil they are producing is a strong competitor with coal. I believe that coal can hold its own provided the people engaged in the industry do their job as they want to dp it and are not hindered by governments such as the Labour Government of New South Wales.

The ACTING DEPUTY PRESIDENT. - Order! The honorable senator’s time has expired.

Senator COOKE:
Western Australia

– We have heard from honorable senators on the Government side not a policy or a defence of the parlous’ condition which the coal-mining industry is in, but an apology for the fact that, while the coal-miners have produced for Australia all the coal it needs, and more, and whilst the Government without any equivocation commends them for doing so, it is not taking any interest in whether the miners who have served their country so well are treated in a fair or equitable manner. It is for this reason that the Opposition has moved this motion in ‘ relation to the coal-mining industry.

At the present time, Australia has only two sources of fuel. One is hydro-electric power, and the other is coal. In regard to the former, when the Labour government first commenced the Snowy Mountains scheme it was boycotted by members of the present Government. Up to the present time, oil has not been found in this country. Because of this fact Australia, as it looks at its economy, must realize that the coalmining industry is in a parlous condition whilst, at the same time, the Government is spending overseas, in both dollars and sterling, a huge sum to provide fuel and power for this country. We of the Opposition say that that is unnecessary. It may not be totally unnecessary, but as we have sources of power in this country the Government by such action is putting Australia in pawn. If it desired to develop those sources it would save this economic infiltration. I shall amplify the observation. If the Government will not recognize the industries of Australia but continues to bring from overseas fuel which costs an enormous amount, which future generations will have to pay, that is a very bad thing.

Both the Minister for National Development (Senator Spooner) and Senator Anderson, who are representatives in this chamber of New South Wales, said that the Government took full credit for the excellent job that has been done in producing coal in Australia. In fact, those engaged in the industry have produced the coal, and the Government has failed to do anything comparable with the contribution made by the workers in New South Wales. I desire to quote an extract from the journal “ Australian Coal, Shipping, Steel and the Harbour “. It is not a quotation from Mr. Gair who, in Queensland, is fighting desperately against the oil interests, but is from a journal which is vitally interested in th6 establishment of an Australian industry.

Senator BYRNE:
QUEENSLAND · ALP; QLP from 1957; DLP from 1968

– It is bitterly anti-Labour.

Senator COOKE:

– As my colleague says, it is bitterly anti-Labour. The article is headed “ Gair v. Oil Companies “, and it reads -

The fight of the Queensland Government with the oil companies over prices has its lessons and its alarming factors. It shows how much the country is at the mercy of overseas interests and events and how frail is its lease of economic life, if overseas sources of fuel are closed off or scarcity sends prices up beyond economic levels.

That is what the Opposition is saying too, not to gain political grandeur or make party political capital, but in order to make this Government realize that its first obligation is to protect Australian citizens and Australian industries. The Government has failed to do that.

I remember quite clearly that when this Government came into office it laid a charge against the workers in the coal-mining industry. It said that they were incapable, and, as a matter of fact, compared them with workers in Asiatic countries, even implying that they were of less value. The statement was made that if indentured labour could be brought into this country our position would be improved. The position was changed, not by indentured labour but because the coal-miners were given the opportunity to produce.

Senator Grant:

– The Government had a complex about India.

Senator COOKE:

– That is so, but I do not want to introduce irrelevant matters. The Government on its own admission says that an excellent job has been done on the coal-fields. It says that the miners have produced more than is required and that at the present time thousands of tons of coal are at grass. That does not apply only to New South Wales because a similar position exists in Western Australia. The Government has failed to act in the interests of the Australian worker; it should have facilitated the use of the coal in Australian industries. We no longer need to import coal at exorbitant prices, because the old complaint of insufficient coal production in Australia cannot now be justified. Yet the Government continues to bring oil fuel from overseas although fuel now being produced in Australia is not being used. The Opposition urges the Government to rectify that position.

I admit that the price of coal in Western Australia is higher than it should be due to the inflation brought about by this Government. A cost-plus system operates in Western Australia in relation to coal, and the State Government as the major buyer is embarrassed by the high price of coal. The coal-mining industry is in a bad position not because of lack of production but because of record excess production. The mechanization of the industry has been successful and the coal-miner has played his part in production. I emphasize that the problem is not lack of production or lack of demand but arises from the fact that the Government has not given any thought to utilizing coal as a fuel to the fullest degree, although it is prepared to draw supplies of fuel from overseas.

To-night honorable senators opposite have eulogized the Minister and the Government. They say that no crisis exists because the Government has provided a source of power which was not available during the immediate post-war years. At the same time, they have not answered the charge made by the Opposition against the Government. Coal-miners are out of work not only in New South Wales, but also in every other State. We urge the Government to give consideration to this economic problem and to encourage the use of Australian fuel to the fullest degree. By doing that, it will save a huge amount of its overseas funds now being expended to import fuel into this country. Supporters of the Government have described as political humbug the motion submitted by Senator Ashley. Each successive speaker from the Government side has spoken as though he had been schooled by the Minister. Without exception, they have admitted that huge quantities of coal have been produced and are lying at grass ready for use, and they claim credit on that account. Government senators have also claimed credit for the introduction of mechanization into the coal industry.

Some honorable senators opposite have stated that we could export coal. What hypocrisy, in view of the fact that we import huge quantities of oil from nation’s that hold Australia to ransom. Mr. Gair, the Premier of Queensland, has made a courageous stand on this issue. The Government’s answer to the allegations that have been made by Senator Ashley is completely unsatisfactory, having regard to our national economy and to the miners who are out of work, many of whom are starving. 1 remind the Senate that, during the last war, coal-miners were not permitted to enlist in the armed forces, because it was considered vital to our survival that they should continue to produce fuel. But the position is entirely different to-day. The Government says to the miners, in effect, “ As we now have enough coal at grass, you can go home and starve “. I warn the Government that the day of reckoning is approaching. The Government will have to consider whether it is economically sound to continue to borrow from other countries money with which to import fuel while we have huge stocks of coal available for use. 1 urge the Government to direct its mind urgently to the grave situation that has developed in our coal-mining industry.

Question resolved in the negative.

page 436

PUBLIC SERVICE BOARD

Senator SPOONER:
LP

– I lay on the table of the Senate the following paper: -

Public Service Act - Thirty-second annual report of the Public Service Board, for year 1955-56.

With the report is’ a copy of a statement concerning the Public Service Board, which was made in the House of Representatives to-day by the Minister for Immigration (Mr. Townley) on behalf of the Prime Minister (Mr. Menzies).

page 436

QUESTION

NATIONAL LIBRARY INQUIRY COMMITTEE

Senator SPOONER:
Minister for National Development · New South Wales · LP

– Honorable senators will recall that last year the Government appointed a committee to examine the question of the control of the National Library, and its functions, and to advise whether any change in the present method of control was desirable. The committee has concluded its work, and has presented its report to the Prime Minister (Mr. Menzies). The report has not been printed, but a limited number of copies has been supplied to the Clerk, from whom honorable senators mav obtain them. I now present the report, and move -

That the paper be printed.

Debate (on motion by Senator McKenna) adjourned.

page 437

MINISTERIAL ARRANGEMENTS

Senator SPOONER:
LP

– by leave - I have to inform the Senate that the Prime Minister (Mr. Menzies) will be absent from Australia from 10th April, to 28th April. During his absence the Treasurer (Sir Arthur Fadden) will act as Prime Minister.

I have also to inform the Senate that the Minister for Health (Dr. Donald Cameron) will be absent from Australia from 14th April until 15th June, for the purpose of attending to various matters overseas within his administration. During his absence, the Minister for Immigration (Mr. Townley) will act as Minister for Health, and he will represent the Minister for Repatriation (Senator Cooper) in the House of Representatives while the House is sitting.

page 437

ADDRESS-IN-REPLY

Presentation to the Governor-General.

The DEPUTY PRESIDENT (Senator the Hon. A. D. Reid). -I desire to inform the Senate that this day, accompanied by. honorable senators, the President (Senator the Hon. A. M. McMullin) waited on the Governor-General and presented to him the Address-in-Reply to His Excellency’s Speech on the occasion of the opening of the Second Session of the Twenty-second Parliament, agreed to on 28th March. His Excellency was pleased to make the following reply: -

Mr. President,

Thank you for your Address-in-Reply which you have just presented to me.

It will afford me much pleasure to convey to Her Most Gracious Majesty the Queen the message of loyalty from the Senate of the Commonwealth of Australia, to which the Address gives expression.

page 437

AUSTRALIAN CAPITAL TERRITORY COMMITTEE

The DEPUTY PRESIDENT (Senator the Hon. A. D. Reid). - I desire to inform the Senate thatI have received a letter from the Prime Minister (Mr. Menzies) appointing Mr. J. B. Howse and Mr. C. G. W. Anderson to be members of the Joint Committee of the Australian Capital Territory. I have also received a letter from the Leader of the Opposition in the House of Representatives (Dr. Evatt) appointing Mr. J. R. Fraser and Mr. W. C. Coutts to be members of the Joint Committee of the Australian Capital Territory.

page 437

LOAN (INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT) BILL 1957

Bill received from the House of Representatives.

Standing Orders suspended.

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

Second Reading

Senator SPOONER:
Minister for National Development · New South Wales · LP

.- I move-

That the bill be now read a second time,

The purpose of this bill is to authorize the borrowing of a sum of 50,000,000 dollars from the International Bank for Reconstruction and Development, in accordance with the loan agreement concluded with the bank on 3rd December, 1956. The borrowing of 9,230,000 dollars from the bank under the loan agreement of 15th November, 1956, to finance portion of the cost of new aircraft for Qantas Empire Airways Limited is being covered by separate legislation.

Our four previous loans from the bank, amounting to 258,500,000 dollars, which were raised between 1950 and 1955 have been fully used. Drawings under the fourth loan of 54,500,000 dollars were completed in December, 1956. This new loan, together with the loan for aircraft for Qantas, brings the total of our borrowing arrangements with the bank to 317,700,000 dollars. This loan of 50,000,000 dollars will enable licences to be issued for further imports of a range of essential capital equipment from the dollar area. The issuing of licences has already begun and imports of this equipment under these and other licences still to be issued will commence later this year and continue during 1958. The full texts of the new loan agreement and the’ loan regulations are reproduced in the first and second schedules to the bill now before the Senate.

The Government believes that a measure of external financial assistance is desirable if a satisfactory rate of development of Australia’s economic resources is to be maintained. Although the bulk of the resources, both financial and material, required for our development is found locally, imported equipment of various kinds is essential for expansion and modernization in many fields. The larger part of these imports comes from nondollar sources. There remains, however, some vital equipment which can be obtained only from the dollar area, and International Bank finance provides additional dollars to pay for part of this equipment.

Honorable senators will be interested to hear a few figures which highlight the uses to which the earlier International Bank loans have been put, and which indicate the valuable contribution these loans have made, and are still making to our economic progress. About 75,000,000 dollars, or almost one-third of the total, has been used for the purchase of tractors, agricultural machinery and earth-moving equipment for the improvement of farming techniques on existing farms and the opening up of new lands. Recent marked improvements in productivity in our primary industries have undoubtedly been due, in no small measure, to the increased supply of modern American farming equipment such as pick-up hay balers, combines, forage and other harvesting machinery and tractors.

Over 20,000,000 dollars has been allocated to the modernization of railways. A large proportion of this has been used to pay for components for diesel-electric locomotives whose operations here have resulted in big economies and improved services in the railways using them. Import licences valued at almost 45,000,000 dollars have been issued for tractors and road construction equipment, and for trucks and components for the manufacture of trucks in Australia. Expenditure on longe-range aircraft and spares, both for our international and our domestic air services, has accounted for 35,000,000 dollars, and almost 30,000,000 dollars has been provided for plant for electric power production. The forestry and mining industries have been allotted almost 20,000,000 dollars and about 35,000,000 dollars has been used to pay for a wide variety of equipment for the modernization and expansion of our manufacturing industries. It should be mentioned that much of the bank-financed equipment is being used to assist export production, not only directly as in agriculture, mining and various secondary industries, such as the iron and steel industry, but also indirectly by supplying modern equipment for the transport industries. There can be no doubt, also, that the Australian economy to-day is more efficient as a result of the goods paid for with International Bank finance.

This new loan will ensure continued access by public authorities and private industry to that productive equipment and technique which is available, generally speaking, only in the United States and Canada. It is for a period of fifteen years, and interest is at the rate of 4£ per cent, per annum. Interest is payable half-yearly on the amount of the loan withdrawn and outstanding from time to time, and the interest charge includes the 1 per cent, commission which, under its articles of agreement, the bank is required to charge and pay to its reserves. A commitment charge of i per cent, per annum is payable half-yearly on the amount undrawn from time to time, and accrues from 1st February. 1957.

Repayments of principal do not commence until two and a half years after signature, the first principal repayment falling due on 15th July, 1959. Payments of interest and principal will then be made half-yearly in accordance with an amortization schedule on a fixed annuity basis. The final payment will fall due on 1 5th January, 1972. Under the loan agreement, once the full amount of the loan has been withdrawn, and until amortization payments commence in 1959, interest will amount to 2,375,000 dollars, or £A. 1,060,000 per annum; from July, 1959, onwards, annual payments of interest and principal combined will amount to 5,200,000 dollars, or £A.2,32 1,000.

In general, the other clauses of the new loan agreement are similar to those in the previous loan agreements, each of which received the approval of the Senate; and the terms and conditions of the present loan to Australia are in line with those of International Bank loans to other countries at the time. The rate of interest, however, on similar loans now being made by the bank is 51 per cent. As with previous International Bank loans, it is intended to pay the Australian currency proceeds of this fifth loan into the National Debt Sinking Fund. This is provided for in clause 6 of the bill, and clause 7 requires the National Debt Commission to meet repayments of principal to the International Bank as they fall due. In effect, therefore, the loan provides its own sinking fund. Payments of interest and other charges are to be met from the Consolidated Revenue Fund. This is provided for in clause 8.

Clause 9 exempts this loan from certain provisions of the National Debt Sinking Fund Act. This is necessary because otherwise the Commonwealth Government would be obliged to make normal Sinking Fund contributions. Schedule 2 to the loan agreement describes the development programmes to which the equipment financed under the loan will contribute. It also gives examples of the types of equipment which will be financed out of the proceeds of the loan.

Although the goods to be procured have not, as yet, been precisely determined, an allocation of the new 50,000,000 dollars loan among the four programmes has been tentatively agreed with the International Bank. This tentative allocation, which may be varied with the agreement of the bank as the needs of importers become clearer, is as follows: -

As in our earlier loans, agriculture will receive a substantial share of the total. Although much of the equipment needed to develop new areas and increase output from existing holdings can be obtained either from Australian manufacturers or from suppliers in countries outside the dollar area, there are certain types of tractors and other farm machinery which have to be obtained from the United States and Canada. The loan will ensure that our producers do not suffer by lack of access to the latest technological developments in the agricultural machinery field. Tractors and logging equipment for the forestry industry are also eligible for International Bank finance. As was the case in the fourth loan, transport equipment represents an important proportion of the total value of the goods to be financed under the present loan. I am sure that honorable senators will readily appreciate the vital need to expand and improve transport facilities in a continent at large as ours, and with widely scattered centres of population and production. The road transport programme, for which an amount of 12,800,000 dollars has been tentatively allocated, includes not only equipment for the construction and maintenance of roads and bridges, but also trucks and components for their manufacture in Australia. The amount set aside for the railway programme will be used mainly to purchase components for the manufacture of diesel-electric locomotives in Australia.

An amount of 16,000,000 dollars has been tentatively allocated to the industrial development programme. This amount will cover the purchase of essential dollar capital equipment for the iron and steel, food processing, mining and engineering industries. Investment in the manufacturing field is largely undertaken by private enterprise, and the development plans of private firms at any given time are in varying stages of formulation and execution. This has been recognized by the bank and, in order to provide a measure of flexibility, a fixed sum has not been allocated to each sector of this programme.

There will be no difference in operating procedures between the present and earlier International Bank loans. The Department of Trade has notified importers of the types of goods eligible for the licensing under the loan and, as I have already indicated, the issue of licences has begun. In general, equipment will not be licensed for importation against the loan if similar equipment is available from non-dollar sources at reasonably comparable prices and delivery dates. As in previous loans, importers will pay for the goods licensed through normal banking channels. Once again this further loan shows the International Bank’s appreciation of the need to continue the development of our resources. It also demonstrates the bank’s confidence in the future of the Australian economy. Since the loan will be used for the further improvement of our productive capacity, it cannot fail to yield benefits, as the earlier loans have done, of great value to us and I have great pleasure in com;r.ending this bill to the Senate.

Debate (on motion by Senator McKenna) adjourned.

page 440

QUESTION

INTERNATIONAL AFFAIRS

Debate resumed from 9th April (vide page 409), on motion by Senator O’sullivan-

That the following paper be printed: -

International Affairs - Ministerial Statement, dated 2nd April, 1957.

Senator CAMERON:
Minister for Health · Victoria · LP

– The Minister for External Affairs (Mr. Casey), during his speech on foreign affairs in the House of Representatives on 2nd April, referred to what he termed the role of the United Nations. I consider that that portion of his speech was the most important from our point of view. I summarize what he said, after dealing at length with the Middle East problem, EgyptianIsraeli relations, and the Suez Canal - 1 end this survey of the Middle East with some observations on the past and future role of the United Nations. It has had many of these questions before it for a number of years. Without wishing to be unduly critical, it can be said that it has reached no satisfactory solution to any of them. This was all too evident in the Assembly’s handling of the Israel-Egypt dispute. From this Egypt will no doubt draw considerable encouragement, for, as long as Egypt has the backing of a partisan group in the General Assembly, for so long will she be encouraged to pursue her own interests to the detriment of the international situation. It is the Menzies Government’s view that there is a compelling need, in the United Nations and outside it, for the great democratic powers to assert joint leadership directed towards peace and stability which is consistent with the Charter of the United Nations.

Those are the words of the Minister, who has been closely associated with all the negotiations that have taken place in that connexion. What Mr. Casey has said, in effect, is that the United Nations, formed in 1945, like its predecessor, the League of Nations, formed in 1920, had failed to live up to its Charter to maintain international peace and security. In doing so it simply repeated what has been known and what has been said again and again by responsible authorities throughout the world, particularly since 1950. During the month of June of that year, it will be remembered, the North Koreans invaded South Korea, and the United Nations, instead of trying to prevent the war which subsequently took place, decided to engage in war itself against the North Koreans, and as the world knows now, this was done mainly with American conscript troops, for the purposes of American imperialists. Their objective at the time was at least to establish military bases in North Korea. The representatives of Russia, as members of the United Nations at the time, with the right to veto, may have been able to prevent the terrible slaughter of innocent men and women which took place as a result of the war. Had they chosen to do so, the present position in Egypt to which the Minister for External Affairs has referred might not have arisen. Instead, there might have been a better understanding among representatives of the governments of the western and eastern hemispheres than there is at present.

No attempt was made by the Minister to explain why the United Nations has’ failed to maintain international peace and security beyond his statement that the organization had been sabotaged by a “ partisan group “ within the ranks of its General Assembly. He could have said also that the League of Nations of 1920 failed for the same reasons. The “ pressure group “ then included American imperialists operating outside the league. They attempted, through President Woodrow Wilson, to control world economy as the world’s leading war-created creditor nation.

Those who have taken sufficient notice of events of that time will remember that members of the League of Nations deliberately thumbed their noses at the league. I refer particularly to Italy, which declared war on Abyssinia, and to Japan which invaded Manchuria. The American imperialists failed for the time being, mainly as a result of the opposition of Great Britain and France. They were not then debtor nations as they are to-day, but were much stronger financially. Article 5 of the Covenant of the League of Nations, which declared that “ the first meeting of the Assembly and the first meeting of the Council should be summoned by the President of the United States of America “ has remained a dead letter ever since.

In the meantime, World War II., and the failure of the United Nations to maintain international peace and security, have become outstanding among the tragic events of world history. The result has been an inevitable conflict of interests between competing imperialists who are striving to control the economy of the world, and who seek the subjugation of weaker or backward nations. The Minister for External Affairs said as much when he stated, in his speech -

It is the Government’s view that there is a compelling need in the United Nations and outside it, for the great democratic powers to assert joint leadership directed towards peace and stability which is entirely consistent with the charter of the United Nations.

The great democratic powers to which the Minister referred were not named, but it may be taken for granted, in view of events since October in Egypt, that the Minister had in mind only one so-called democratic power, and that is the United States of America. That nation is accepted now as the supreme political power of the western world whose objective, ostensibly, is to maintain international peace and stability. Previously, it was refused that position.

I direct attention at this point to a statement by Professor W. R. Crocker, former Professor of International Relations at the Australian National University. In 1945-46 he was a member of the United Nations Secretariat. On 28th November, 1951, he delivered the second Roy Milne memorial lecture in Melbourne. Sir John Latham presided. This is what Professor Crocker said, and he has been proved correct by more recent events -

The United Nations Charter was predominantly American in design. The United Nations Secretariat is predominantly American in members, in method, and in control. The two most powerful officials after the Secretary-General are American and more than a quarter of the Division and Section chiefs are American. Most supply contracts go to American firms. As for the Specialized Agencies, the heads of four of the major Agencies - F.A.O., T.L.O., I.C.A.O., and the Bank - are American citizens: and three of the Specialized Agencies have been domiciled in Washington. Even without these factors, the single fact that the head-quarters’ of the United Nations are in New York would mean a subtle penetration of American values.

What the Professor said in 1951 has actually come to pass. I remind honorable senators that all military warfare has its origin in economic warfare. If there were no economic warfare, there would be no military warfare. Senator Benn directed attention last night to the economic situation which, he pointed out, was the result of economic rivalry for trade and raw materials. That is what is going on to-day among the warring imperialisms that are supposed to maintain international peace and security.

It should be self-evident that the great democracies to which reference has been made became great only in proportion to their armies, navies, or trade. They are not great because they were wiser, better, happier or more contented people than any other nation. Is such circumstances, it should be obvious that nothing will be done by the great democratic powers to maintain international peace and security until the world’s workers take up a much more determined stand than they have done in the past. I was very heartened when I read a press report that almost immediately after Great Britain and France had virtually thumbed their noses at the United Nations and had invaded Egypt, there was a very strong, spontaneous protest practically throughout the world..

Until the workers organize and refuse to participate in any war of aggression, we have nothing to hope for from the so-called great democratic powers. That view is supported by quite a number of people in other countries who have taken an interest in these matters. I propose to quote from certain overseas publications, but, first, let, me refer to the following statement by Dr. Evatt on 2nd May, which appears in “ Hansard “, page 421: -

What is the cause of the Middle East crisis? The Minister for External Affairs claims that it is due to racial antipathy. I say it is due to nothing of the kind. The Australian Government should realize that the basic economic issue underlying the whole of the Middle East situation, including the Suez crisis, is the struggle of the world monopolies to control oil supplies.

Is that statement seriously disputed? I say that it is not. If there was no oil in the Middle East, there would be no trouble there. If there was no tin in Malaya, there would be no trouble in Malaya. The attitude adopted by warring imperialism is to establish and maintain world monopolies to control the oil resources of the Middle East.

I now quote the following passage which appears at page 6 of the NovemberDecember, 1956, issue of the “ Western Socialist “, a Canadian publication which has been in existence for approximately 40 years: -

The once mighty British Empire, like all industrial powers, in these times could only maintain a position among nations as long as it had access to unlimited stores of oil to run its machinery of “ peace “ as well as of war. Until quite recent times there was not too much trouble for Britain in the oil department. Even after she lost the immense Abadan refineries when Iran nationalized the industry Britain was still solidly in control of vast holdings throughout the Arab world, especially the oil-soaked desert states of Kuwait, Qatar and Bahrein. But to-day the situation is somewhat different and we find that five American companies own 58 per cent of current production and 60 per cent of known reserves in Middle East oil.

In his series of articles on the “ Oil Situation “, John Harriman tells us that there has been a lot of friction between British and United States interests in this area, even small-scale private war. In his column of Nov. 2/56 there appears the following interesting piece of information: - “ Dispute Between King Saud and Muscat. “ There is also a little spot in the South-east Arabian peninsular called the Baraimi Oasis, beneath which is goodness knows how much black gold’. “ This oasis is claimed by two rulers: King Saud of Arabia and a gentleman called the Sultan of Muscat. Each ruler says the oasis and the oil underneath it is his - and it so happens that King Saud is our great good friend while the Sultan of Muscat looks to London for guidance and you know what. “This dispute went so far that a news dispatch last winter stated: ‘ Britain recently got control of that prize (Baraimi) by leading Muscat forces in a military occupation of watering places that guard the desert approaches to the disputed oilfields ‘. “ And almost immediately afterwards we dispatched 18 tanks to our friend King Saud. Maybe this was closing the stable door after the horse had gone, but it did ease the way to extend our lease on an air base at Dhahran, slightly to the north and strategically located to protect our oil interests in Arabia. “ There have been other frictions, other smoulderings just below the surface, as our power in the area has risen and British power declined.”

That indicates that behind the scenes there is a struggle between Great Britain and America for the control of oil resources. The article further states, referring to Israel -

The population to-day is only about 2 million and it is so far from being independent in any way that we find that, as Time–

That is, the American magazine - for Nov. 19/56 puts it: “ American Jewish leaders have accepted a charitable assignment which now supplies the equivalent of 35 per cent, of the annual budget of Israel - in invaluable hard currency U.S. dollars - and are thus playing a part in the Middle Eastern crisis in which Israel is one of the elemental parts “.In the eightyears of Israel’s existence. Time tells us, “ American Jewish organizations have already sent more than $700 million to Israel - an outpouring that is the No.1 phenomenon of U.S. philanthropy “.

So that Israel, for all practical purposes, and for reasons which should be quite obvious, is supported by American capital.

Reference has been made to Colonel Nasser, and in the September-October, 1956, issue of “The Western Socialist” some idea is given of what has been going on behind the scenes. In my opinion, that is a correct idea. In a paragraph entitled “ Col. Nasser’s Pipe Dream “, this journal reports -

In Col. Nasser’s book entitled “The Philosophy of the Revolution “, he sees Egypt as the logical spearhead of an organized Moslem movement embracing hundreds of millions of dedicated followers - the controller of the whole African continent. In other words he is telling his own impoverished workers and those in the rest of the Moslem world the same old story - put up with present conditions because we are organizing to usher in a new order where all of us (Moslems) will live in luxury. He puts it this way: - “ Can we further ignore the existence of an Islamic world, with which we are united by bonds created not only by religious belief, but also reinforced by historic realities? within the Arab circle there is a role, wandering aimlessly in search of a hero this role, exhausted by its wanderings, has at last settled down, tired and weary, near the borders of our country and is beckoning. “When I consider the 80,000,000 Muslims in Indonesia, and the 50,000,000 in China, and the millions in Malaya, Siam and Burma, and the nearly 100,000,000 in Pakistan, and the more than 100,000,000 in the Middle East, and the 40,000,000 in the Soviet Union, together with the other millions united under a single creed, I emerge with a sense of the tremendous possibilities “ Here is the role. Here are the lines, and here is the stage. We alone, by virtue of our place, can perform the role “.

That is the type of man who is leading the Muslims. He is similar to the Hitler and Mussolini types of the 1930’s. For all practical purposes he is being supported by both Russia and the United States of America against Great Britain and France. There is a good deal more behind the scenes than is generally known. I refer again to what is reported from Moscow in the November-December issue of ‘” The Western Socialist”. The report states -

MOSCOW, Nov. 17 (AP)- The Soviet Union is sending 15,000,000 rubles worth of supplies to the Egyption. Red Cross and Red Crescent Societies, it was announced here to-night.

Fifteen million rubles are the equivalent at the official Soviet exchange rate of $3,750,000.

The Russian announcement said funds for the supplies were collected from contributions by Soviet factory and office workers “ to aid Egyptian victims of foreign aggression “.

So it goes on, to prove that we have not been told all the facts that are to be known. The Minister for External Affairs (Mr. Casey) has pointed to the obvious, which cannot be ignored - the failure of the United Nations. That failure has been due to the fact that the United Nations is united in name only. Within its ranks are warring and competing imperialisms. In passing, 1 would say that war is politics in its most forceful form. There can be no international peace and security where there is no international community of interest. Such a community of interest, internationally, can be established and maintained only by the re-organizing of national and international economies. That is the position with which we are faced, but which the Government ignores. It is just waiting, from time to time, to see what happens. In the circumstances, I consider that the Prime Minister (Mr. Menzies) has done Australia a great disservice by attempting to negotiate with Egypt, which attempt he should have known was merely so much wasted effort.

If we are to form an intelligent idea of the position, we have to keep in mind that there can be no international peace or security under existing conditions. There must be an entirely new and more intelligent approach to the matter. It should be admitted that the idea of international security and peace is one thing in theory, but the practice is quite a different matter. Finally, this is a case in which the noble sentiments have been used by the Government to justify the most ignoble practices.

Senator PEARSON:
South Australia

– We have just listened to a characteristic speech from Senator Cameron. He reads extensive quotations, but most honorable senators have never heard of their authors or of the sources from which the honorable senator has taken them. He always over-simplifies the causes of any problem, and he invariably finds them in the economic sphere. It does not matter whether the trouble is a nagging tooth or a world conflict, the cause is always economic. A few moments ago, the honorable senator said, “ Al! military warfare is caused by economic warfare “. He went on to speak of warring imperialism. I take it that when the honorable senator refers to countries engaged in imperialistic warfare he always has in mind our own mother country of Great Britain and, to some extent, the United States of America. He made specific reference to the United States of America by suggesting that it played a major part in the Korean war. He further suggested that the great interest taken by the United States of America in that war was commercial, and also national, to the extent of establishing military bases for America in Korea. I felt that Senator Cameron was in some difficulty with his colleagues over making that statement, because during this debate honorable senators opposite have cited Korea - quite correctly - as being a magnificent example of how the United Nations can stop war. 1 think the honorable senator claims that the United Nations stopped the war in Korea, and if that is correct, as I believe it is, it is obvious that that was, in no small measure, due to the fact that the forces of the United States, rather than those of any other nation, gave such powerful aid to South Korea. Surely, at this stage, Senator Cameron ought to be prepared to give credit where it is due. Perhaps, as I have already said, he is in some measure of conflict with his colleagues in this particular matter. The Parliament and the people of Australia give credit to the Minister for External Affairs (Mr. Casey) for the very valuable summary he provided in his speech in another place, which was repeated by the Leader of the Government in the Senate (Senator O’sullivan). Those speeches were clear, factual and moderate and, in the limited time available, were most comprehensive. The Minister for External Affairs and Senator O’sullivan spent some time referring to the great Middle East problem which has caused so much anxiety to us all. Their speeches were clear, factual and noncontroversial. In being non-controversial they set a pattern which, I regret, has not been followed by honorable senators opposite. The Leader of the Opposition (Senator McKenna) did a disservice to the cause of world peace and to harmony in this Parliament in the minds of the people of Australia and possibly, unfortunately, far beyond the bounds of Australia. Many honest and sincere differences of opinion in regard to what happened in the Middle East have been expressed by various sections of the people. I also hold very strong views on the matter.

Senator Grant:

– Let us hear them.

Senator PEARSON:

– If Senator Grant will keep quiet he will hear them in due course. I concede the right of any honorable senator to hold equally strong views although they may conflict with mine.- I had hoped that the events of October and November last in the Middle East would now be treated as events of the past. I thought that we were all prepared to forget them as matters for re-examination of their causes and of the right and wrongs of what happened. But the other night the Leader of the Opposition - I listened to him, as I always do, with a great deal of interest - spent 33 minutes of his limited time in an attempt to persuade the Senate to accept two propositions which I shall put forward as clearly as 1 can. I think I can give a fair interpretation of what he said during that period.

He alleged that Russia, in its battle with the Hungarian people - that is all one can call it - withdrew from Hungary on 30th October, and returned on 4th November only because by that date Great Britain and Fiance had themselves engaged in military action in the Middle East and, therefore, as he put it, were guilty themselves and could not rebuke Russia for the dreadful action it continued in Hungary from 4th November onwards. The Leader of the Opposition based his case on an article in the “ Sydney Morning Herald “ which was alleged to refer to a Peking radio broadcast. If I am misquoting the Leader of the Opposition I hope he will shake his head; but I think I am being fair. What a fanciful proposition to put to this Senate and to the people of Australia - that Russia went back on 4th November to continue that terrible bloodshed in Hungary simply because it decided that Great Britain and France were at war in the Middle East!

I have my own opinion as to why Russia went back. It was not for that reason at all. Russia withdrew from Hungary on 30th October because it had had a terrible licking in Hungary due to the magnificent resistance of the people who were fighting for freedom; and it went back to continue the carnage after it had time to lick its wounds and regroup its forces. If Russia had any other reason for returning to Hungary it was because the United Nations, in which some people - I say this more in sorrow than in anger - put so much faith, was strangely silent in regard to Russian atrocities in Hungary. The spleen of a certain section of the United Nations at that time was directed towards the action of Great Britain and France in the Middle East. I hope I will be saved from the temptation to say what I think in regard to the Middle East and Great Britain’s action there; but I say definitely that Russia went back to Hungary because the United Nations was strangely silent in regard to the matter, perhaps, because it was completely powerless, anyhow.

The second proposition which the Leader of the Opposition put to the Senate was that the Hungarian people are now saying that Great Britain and France were responsible for what happened in Hungary. I think he said that the Hungarian people were blaming Great Britain and France for what had happened in Hungary because they acted on the assumption that as Russia was pre-occupied in Hungary it could not intervene in any action which Great Britain and France took in the Middle East. That proposition is completely fanciful and ridiculous. I do not think that many Australians will agree with the Leader of the Opposition. He may say that I am misquoting him, but I have “ Hansard “ before me. He said that he did not himself allege that this was definitely the reason why the Hungarian people thought in that way, but that we must give some credence to that claim. I do not accept that proposition for one moment; it is too farcical.

If we are to say anything about the action of Great Britain and France in the Middle East, it may be of interest to the Senate, particularly to honorable senators opposite, to know that a gallup poll, the results of which were published in the press in South Australia on 20th December last, indicated that the great majority of the people of Australia were solidly behind that action.

Senator Toohey:

– What about the British people?

Senator PEARSON:

– A gallup poll showed that the British people were also solidly behind that action. Might I say to honorable senators opposite, who do not appear to like what I am putting to them, that the gallup poll to which I refer showed that the 61 per cent, of Australians who agreed that the right thing had been done, consisted in equal proportion of Labour and Liberal supporters. The relevant press report further pointed out that the poll in Great Britain showed that the majority of people there were in favour of what had been done and that those people included a former Labour Cabinet Minister who recently visited South Australia. I refer to Mr. Shinwell, who made some forthright statements on this matter. He is not a member of the Liberal party; but he was a member of the British socialist Government which was recently defeated in Great Britain. I do not wish to go further into the matter. I am simply quoting a gallup poll - such polls are usually reliable indicators - to show that a great majority of the people of this country, to their everlasting credit, stood by the action that was taken by Great Britain and France in the Middle East.

Debate interrupted.

page 445

ADJOURNMENT

War Service Homes - Land Settlement of Ex-servicemen - Canberra Rail Service.

The DEPUTY PRESIDENT (Senator the Hon. A. D. Reid). - Order! In conformity with the sessional order relating to the adjournment of the Senate, I formally put the question -

That the Senate do now adjourn.

Senator SPOONER:
Minister for National Development · New South Wales · LP

– During the debate on the motion for the adjournment of the Senate on 28th March, Senator O’Flaherty referred to an insurance claim under the War Service Homes Act that had been lodged by Mr. G. H. Perkins, of Marion-road, Ascot Park, South Australia. I promised the honorable senator that I would ascertain the circumstances of the case.

Briefly, the facts are that, in 1951, when assistance was granted to Mr. Perkins by the War Service Homes Division, it was noted that numerous cracks existed in the walls of the dwelling. These were considered to be due to seasonal changes in the moisture content of the soil beneath the footings of the building.

Following upon earthquake damage in 1954, a claim under the war service homes insurance scheme was admitted, and all the fractures then existing in the dwelling were repaired. The cost of this work was defrayed from the insurance fund. Subsequently. Mr. Perkins reported that some of the repaired fractures had re-opened. A further inspection disclosed that, in the opinion of the division’s technical officers, the re-opening of the fractures was due to soil movement. As this is not an insurable risk, Mr. Perkins was informed that a further claim could not be admitted.

In June, 1955, Mr. Perkins reported the flooding of his property. An inspection revealed that most of the fractures were old re-opened cracks, the cause of which was attributed to soil movement. However, in view of the flooding that had occurred, the division agreed to bear half the cost of repairing the fractures, although there was considerable doubt whether the circumstances warranted acceptance of a claim under the insurance certificate. Mr. Perkins was given the benefit of the doubt.

It seems to me that Mr. Perkins has been treated fairly by the War Service Homes Division. In view of the circumstances that I have explained to the Senate, the division’s offer to meet half the cost of repairing the fractures cannot be regarded as ungenerous.

Senator AYLETT:
Tasmania

– Some months ago, I raised in this chamber the question of the plight of an exserviceman who had been settled on a farm on King Island, and I subsequently handed a file of papers on the subject to the Minister for National Development (Senator Spooner). The ex-serviceman to whom I refer is still under a threat of persecution, due to mismanagement by the officers of the Agricultural Bank who settled him on the farm.

Recently, a motion of no-confidence in the Tasmanian Labour Government, based on its soldier settlement activities, was defeated in the Legislative Assembly of Tasmania. During the debate, the Premier of Tasmania stated that soldier settlement was a Commonwealth responsibility. If this matter is a responsibility of the Federal Government, why has Mr. Driscoll, a member of the Agricultural Bank, stated that he intends to hand the case over to the Solicitor-General with a view to the exserviceman being sued for £600?

The ex-soldier has eight or nine children. He has received medical attention at a repatriation hospital over many months, and he is still very sick. His employment in the scheelite mining industry on King Island is only intermittent, and his earnings are insufficient to enable him to provide adequately for his children. The threat of persecution that is hanging over him has accentuated his nervous condition. I earnestly request the Minister to intervene in this matter in order to prevent the exserviceman from being further persecuted.

Senator SHEEHAN:
VICTORIA · ALP

.- Last week, I directed the attention of the Attorney-General (Senator O’Sullivan) to a report that was circulating to the effect that the New South Wales Department of Railways proposed to discontinue the practice of detaching a sleeping car from the Sydney express at Goulburn and attaching it to the train proceeding to Canberra. I pointed out that if this proposal were given effect, sleeping car passengers from Melbourne would be forced to leave the sleeping car at Goulburn and wait for some time to join the Canberra train.

As Senator O’Sullivan is not present in the chamber to-night, I urge the Minister for National Development (Senator Spooner) to try to prevent this proposal from being implemented. It would be to the detriment of the National Capital if it were gone on with, because sleeping car passengers from Melbourne would have to leave the Sydney express at about 6 a.m. at Goulburn. That would be extremely undesirable, particularly in the winter months. I realize that most honorable senators, when travelling from Melbourne to Canberra, avail themselves of the air service; but. for a variety of reasons, many people still prefer to travel by train.

Having been closely associated with railway transportation for many years, I believe that decent railway travelling facilities should be provided for persons coming to Canberra on business, or for any other reason. I consider that the service to Can berra provided by the New South Wales Department of Railways is a disgrace. The sleeping car that is provided for railway passengers from Melbourne to Canberra is one of the oldest in service. Many complaints have been made about it over the years, and I believe that its continued use has been one of the reasons why many people who travel from Melbourneto Canberra regularly have abandoned rail travel in favour of air travel. The railway authorities seem to be incapable of so improving their facilities as to obviate a further drift in the position. If there is anything in the suggestion that certain railway facilities are to be withdrawn from the National Capital, I urge the Minister for Shipping and Transport (Senator Paltridge) to protest emphatically. We should make the best rail accommodation available for people travelling to Canberra, not ramshackle carriages that have been in use for 40 or 50 years.

Senator Anderson:

– That railway is controlled by a State Labour government.

Senator SHEEHAN:
VICTORIA

– It is not controlled by a State Labour government; it is controlled by a commissioner who is not under the control of that government.

Senator SPOONER:
New South WalesMinister for National Development · LP

– I listened with interest to the views expressed by Senator Sheehan and Senator Aylett. As both honorable senators are aware, the Ministers responsible for the particular matters they mentioned are, unfortunately, not present in the Senate at the moment. I rise simply to give both honorable senators the assurance that the views they have expressed will be brought to the notice of the Ministers concerned.

Question resolved in the affirmative.

Senate adjourned at 11.11 p.m.

Cite as: Australia, Senate, Debates, 10 April 1957, viewed 22 October 2017, <http://historichansard.net/senate/1957/19570410_senate_22_s10/>.

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