Senate
13 October 1970

27th Parliament · 2nd Session

  1. Senate
  2. 27th Parliament
  3. 1970

The PRESIDENT (Senator the Hon. Sir Alister McMullin) took the chair at 3 p.m., and read prayers.

page 1047

SENATE ELECTION

Ministerial Statement

Senator Sir KENNETH ANDERSON:
Minister for Supply · New South Wales · LP

– by leave - When I informed the Senate on 1st October that the Government proposed that the next Senate election should be held on Saturday, 21st November 1970, I undertook to give full details of the timetable when replies had been received from the States. I am now able to say that all States are in agreement with the timetable, which is as follows: Issue of writs, 16th October 1970; close of nominations, 29th October 1970; polling day, 21st November 1970; date for return of writs, on or before 7th January 1971.

page 1047

MINISTERIAL ARRANGEMENTS

page 1047

NOTICE OF MOTTON

Senator DEVITT:
Tasmania

– I give notice that on the next day of sitting I shall move:

That the Land Rent (Interim Provisions) Ordinance as contained in the Australian Capital Territory Ordinance No. 30 of 1970 and made under the Seat of Government Administration Act 1910-1965, be disallowed.

page 1047

QUESTION

QANTAS AIRWAYS LTD

Senator WILLESEE:
WESTERN AUSTRALIA

– Can the Minister for Civil Aviation say whether the general exemption from the payment of sales tax by Qantas Airways Ltd has been revoked? Will this revocation cost Qantas about Sim per annum? Was this revocation proposed as a result of a submission from any foreign airline operator?

Senator COTTON:
Minister for Civil Aviation · NEW SOUTH WALES · LP

– There was aD adjustment to the sales tax arrangements which Qantas had enjoyed and which tended to give it some preference in competition with people operating to Australia. It was thought proper that these should be adjusted. I am unable to say what the effect on the Qantas cost position is. As I would like to answer this question accurately, I will find out for Senator Willesee and let him have the information.

page 1047

QUESTION

HOSPITAL AND MEDICAL BENEFIT FUNDS

page 1048

DISTINGUISHED VISITORS

The PRESIDENT:

– I draw the attention of honourable senators to the presence in the gallery of a parliamentary delegation from the Philippines Congress, including President of the Philippines Senate, Senator G. J. Puyat, and the Speaker of the Philippines House of Representatives, the honourable J. Laurel. I extend to them a warm welcome. With the concurrence of honourable senators I propose to invite Senator Puyat to take a seat on the floor of the Senate.

Honourable senators - Hear, hear. (Senator Puyat thereupon entered the chamber, and was seated accordingly)

page 1048

QUESTION

WHEAT

Senator CANT:
WESTERN AUSTRALIA

– I ask the Minister representing the. Minister for Primary Industry: ls it a fact that a substantial quantity of wheat is being used in the alumina industry in Australia? Will the Minister advise the Senate of the quantity of wheat that has been used by the industry in each of the past 5 years and the price paid by the industry for the wheat - the home consumption price or the export price? If the wheat was sold for use in Australia at a price lower than the home consumption price was it rendered unfit for human consumption? If not, what precautions were taken to ensure that it was used for no other purpose than in the alumina industry?

Senator DRAKE-BROCKMAN:
Minister for Air · WESTERN AUSTRALIA · CP

– I am aware that some wheat is being used in the alumina industry. I do not have at hand details of the quantity or the price at which it was sold to the industry. I will seek those details and give them to the honourable senator as soon as I can.

page 1048

QUESTION

PRIMARY PRODUCTION

Senator DAVIDSON:
SOUTH AUSTRALIA

– Can the Minister representing the Prime Minister give details of the drought relief programme for South Australia? Can the Minister also give an outline of the reported proposals for a nation wide debt reconstruction scheme to help to overcome the problems of primary producers?

Senator Sir KENNETH ANDERSON:

The honourable senator has asked me two questions, the first of which deals with drought relief for South Australia. The information available to me indicates that the Premier of South Australia wrote to the Prime Minister requesting Commonwealth assistance and financial support for the implementation of drought relief measures in South Australia. In a reply dated 30th September the Prime Minister indicated that the Commonwealth would be prepared to reimburse the State for expenditure on agreed measures in 1970-71 in excess of Si. 5m. In arriving at the decision the Prime Minister made it clear that regard had been paid to the need to deal uniformly with the States in these matters.

The honourable senator’s second question relates to proposals for a nation wide debt reconstruction scheme. I have an answer to a question on notice on this subject. I will give that answer, which has been supplied by the Minister for Primary Industry, later today. In reply to Senator Davidson 1 can say now, speaking generally, that there have been a number of recent proposals, including those from several State Governments, for debt adjustment schemes and debt reconstruction schemes in one form or another to help alleviate the problems confronting the rural sector of the economy generally and the wool industry in particular. As honourable senators will know, the Minister for Primary Industry is having carried out, as a matter of urgency, an examination of the overall problems confronting primary producers in Australia. The attitude of the Commonwealth towards the provision of additional finance will be considered in the light of the result of this examination.

page 1048

QUESTION

VIETNAM

Senator WRIEDT:
TASMANIA

– 1 address my question to the Leader of the Government in the Senate who represents the Prime Minister. I ask him whether he has seen the statement in the ‘Australian’ dated 10th October, attributed to the Prime Minister, as follows:

The rationale for an Australian military presence is that it is necessary to have a military presence until a settlement giving selfdetermination to South Vietnam is achieved.

Was this a statement of policy or an expression of opinion by the Prime Minister? If it was a statement of policy, does this mean that Australian troops will remain in Vietnam until such time as South Vietnamese self-determination can be guaranteed by agreement, no matter how long this may take?

Senator Sir KENNETH ANDERSONThe honourable senator is asking me to give a long term answer at question time in relation to a matter of policy. I think the Prime Minister made clear the current situation in Vietnam. He was speaking against the background of the latest suggestions by President Nixon which I understood received some commendation not only from Government supporters but also from the Opposition.

page 1049

QUESTION

PROJECT ‘MALLARD

Senator O’BYRNE:
TASMANIA

– 1 direct my question to the Leader of the Government in the Senate who also is Minister for Supply. In view of the recent withdrawal of participation by the United States of America in the communications system known as Project Mallard., which was to have been a global military communications scheme involving an overall cost to the countries involved of $ 1,000m, can he say how much has been expended by Australia and the British and Canadian Governments who are partners in the project? Is Australia to be compensated for its expenditure on this costly but now abandoned scheme?

Senator Sir KENNETH ANDERSONrt is true that the United States of America has indicated its intention to withdraw from the Mallard proposal which, without being too precise at question time, is a proposed communications system, [t is true that Australia is playing a very modest part in the scheme which, of course, has plenty of pluses for Australia because of the application of technology studies. Ft is too early at this point of time for me to indicate what will be the ultimate result. Discussions are currently going on with the other nations involved in the project as to what may be done in view of the proposed American withdrawal, particularly as some expenditure has been entered into in Australia. That expenditure will not necessarily all be lost because of the experience, practice and training gained in the applicable science. Also, studies are proceeding to ascertain whether there may be some variation as a result of the American action. As a matter of fact, I have called for an information paper on the implications of the American action. As soon as I am in a position to give a more detailed answer as to what the ultimate will be in relation to the Mallard proposal, I will most certainly put it down in the Senate.

page 1049

QUESTION

SYDNEY (KINGSFORD-SMITH) AIRPORT

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

– Has the attention of the Minister for Civil Aviation been drawn to a report, stated to have been prepared by his Department and, asserted to be confidential, that thousands of Sydney home owners beneath the flight paths of Sydney (Kingsford-Smith) Airport will have to consider soundproofing measures by 1976? Is this report correct? Does the report also maintain that the cost of soundproofing will have to be borne by the home owners? Is it correct that it is envisaged that there will he a 70 per cent increase in aircraft movements over Sydney by 1976? Is the Minister aware that municipal councils in and around the Sydney airport are very concerned at the effect that these reports are likely to have on property values within their areas? In view of the general cause for alarm, will he make a ministerial statement on these very vital matters, for the benefit of home owners in the area, so that it can be debated before the forthcoming Senate election?

Senator COTTON:
LP

– Having read the newspaper this morning. 1 anticipated a question of this kind. I have had prepared some information which, I think, will cover the quite detailed and numerous points raised by the honourable senator. At the request - and 1 repeat at the request - of the State Planning Authority of New South Wales, the Department of Civil Aviation, New South Wales region, made available to the Authority some preliminary details of the latest noise exposure forecast for Sydney Airport. As the information made available to the State Planning Authority is still being revised by the Department of Civil Aviation in the light of the claim made by a Labor member of Parliament, which I think was supported by the noise recording figures, that when the Boeing 747 arrived at Sydney Airport it appeared to be appreciably quieter than the Boeing 707 and having regard to the fact that these figures have yet to undergo final checking, the information should be regarded as tentative at this stage and therefore one should be a little careful about relying on the information.

The limited details that were made available to the State Planning Authority were made available for two main reasons. Firstly, the Authority was most anxious to have as much information as possible on the noise exposure forecast for its discussions with the local council surrounding the Sydney Airport and, secondly, these councils and the State Planning Authority are members of the Sydney Airport Noise Abatement Committee and as such they should be privy to the information in question, although how they treat it once they get it, when it is said to be confidential, of course is a matter for their judgment.

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

– Surely they are entitled to be told.

Senator COTTON:

– They have been told.

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

– They have not been told.

Senator COTTON:

- Mr President, may I be permitted to answer the question without interruption? If the honourable senator took some trouble to examine what I am saying he would find that the Department has acted very properly and, I think, very fairly. I believe that it has an obligation - I have tried to ensure that it honours that obligation - to keep State planning authorities in all States as well informed as possible about noise exposure forecasts. It examines new information and updates old information and makes it available. Authorities and councils in the respective State capitals receive these details in preliminary form and in final form as soon as the Department can let them have it. I think it would be prudent to await the final report of the House of Representatives Select Committee on Aircraft Noise before commenting further on the soundproofing of houses in the vicinity of any major airport. I think it is in the interest of the general public that, as far as possible, any hazards that might be thought to be likely to develop should be communicated to local councils and to State planning authorities as soon as possible in order that at a later date people cannot say that they were not told of potential difficulties.

page 1050

QUESTION

MEAT

Senator MAUNSELL:
QUEENSLAND

– My question is directed to the Minister representing the Minister for Primary Industry. In view of the serious disruption that Ls being caused to meatworks throughout Australia by the withdrawal of licences for exports to the United States of America and in view of the particular effect of such withdrawal on works in northern Australia, which are almost solely dependent on the export market, will the Minister do all he can to ensure that uniform and continuing standards of hygiene requirements are drawn up with the United States authorities?

Senator DRAKE-BROCKMAN:
CP

– J think it is fair to say that grave concern has been expressed by many sections of the cattle industry about the closure of abattoirs. I know that feeling has run fairly high in many places, particularly among cattle men. 1 have heard people say that the Americans are directing a vindictive, campaign against Australian abattoirs. I remind the Senate that some countries have been banned completely from the meat market of the United States of America because their abattoirs did not meet the required standards and because their inspection services were not of a sufficiently high standard.

Senator Devitt:

– Is any of that meat coming into Australia?

Senator DRAKE-BROCKMAN:

– No.

Senator Devitt:

– Are you sure?

Senator DRAKE-BROCKMAN:

– I am sure. The United States was enforcing a policy of federal registration of American abattoirs trading across the State border and, as a result of domestic pressures, was being forced to ensure that imported meat came only from the abattoirs which were of a standard at least equal to the federal requirements. The Department of Primary Industry has been faced with the never ending job of trying to meet the problems in regard to meat inspection and meat export. It has been trying to face up to them and has been doing what is humanly possible to ensure the abattoirs could continue to operate as the American market is of enormous importance to Australia, both through the market itself and its earning capacity. The honourable senator asks: What is being done to let the abattoirs know what is going on? A handbook is made available to each of the abattoirs. It contains all the information from the Department of Primary Industry as to the required standards’ to be met.

Senator Poyser:

– It changes every day.

Senator DRAKE-BROCKMAN:

– The honourable senator says it changes every day. If he can bring this information to me, as the representative of the Minister, or to the Minister himself so that we can see where these changes are occurring perhaps we can do something about them.

page 1051

QUESTION

URANIUM

Senator MURPHY:
NEW SOUTH WALES

– My question is directed to the Minister representing the Minister for National Development. Is the Government aware of reports that PekoWallsend Ltd has discovered a massive deposit of uranium near the Narbarlek region of the Northern Territory and that the Peko find is much larger than that recently made by Queensland Mines Ltd? I wish to make it clear that I am not suggesting in any way that the reports are or are not correct, and I am not suggesting in any way that if they are correct the discovery is or is not commercial. As the Government took immediate steps to limit overseas ownership in Queensland Mines Ltd following the discovery at Narbarlek, will it now take urgent steps to find out whether heavy overseas buying of PekoWallsend shares is occurring? If this is occurring, what action does the Government propose to take to prevent overseas control of this company? What can the Government do if it finds that any company in such circumstances is not registered in the Australian Capital Territory? Will the Minister consult urgently with his colleague in order that a public announcement might be made on the issues involved?

Senator COTTON:
LP

– This question falls within the responsibility of the Minister for National Development whom I represent. I think I remember reading that not long after the reported discovery of uranium at Narbarlek by the Hudson group some discovery had been made by Peko-Wallsend

Ltd but the report did not give any idea of the volume, the length and size of the ore body or the grades. Since that time nothing has been said. Therefore I imagined that it was not quite as significant as at first thought. I do not know whether there has been any heavy buying in Peko-Wallsend Ltd shares. I imagine if there was and if the deposit were of consequence the same line of approach could be adopted as was adopted in the previous case. I shall certainly consult urgently with the responsible Minister, draw his attention to the senator’s comments and suggest to him that action could be contemplated quite urgently if the facts are that there is there an ore body of great consequence.

page 1051

QUESTION

FEDERATION CUP

Senator WHEELDON:
WESTERN AUSTRALIA

– My question is directed to the Leader of the Government. As South Africa will be entering an all white women’s team in the Federation Cup tennis series to be held in Perth in December, despite the fact that South Africa has been expelled from the International Lawn Tennis Federation, will the Government take advantage of the occasion to inform the South African Government that in future the refusal of permission to any Australian of non-European origin to enter South Africa would be resented by the people of this country?

Senator Sir KENNETH ANDERSON:

– I am not certain that I gathered the full context of the question. Questions have been asked before in this place in relation to the attitude mentioned by the honourable senator. What I said a long time ago still applies, that is, that any attempt to introduce politics into sport will be disastrous for sport. As far as I am concerned, when people come here for ..the sole purpose of participating in sporting activities no other matter should intrude. I know of no prohibition on sportsmen from Australia going into South Africa and I believe that if any sportsmen or sportswomen from South Africa come here to play we should, in the spirit of sportsmanship, make them welcome and try to beat them at sport.

page 1051

QUESTION

PRESS GALLERY

Senator GREENWOOD:
VICTORIA

– My question is addressed to you, Mr President. Are standards of conduct and dress required to be observed by persons who are granted the privilege of occupying the Senate Press gallery? If not. will you take steps to ensure that standards are determined and made known? If there are such standards will you take steps to ensure that they are brought to the knowledge of all persons who have the privilege of occupying the gallery?

The PRESIDENT:

– Has the honourable senator specific reasons for asking that question?

Senator GREENWOOD:

– I addressed my question to you, Mr President, and 1 was asking generally whether there are standards and, if there are, whether you will endeavour to ensure that they are maintained.

The PRESIDENT:

– There are time honoured standards. It has become accepted practice in the Senate that certain behaviour will be observed in the Press gallery. I have no knowledge of what the honourable senator is referring to because my back happens to be towards the Press gallery, but if he sees me later and lets me know what the position is I shall take the matter up with the president of the Press gallery.

page 1052

QUESTION

CHARTER FLIGHTS

Senator MULVIHILL:
NEW SOUTH WALES

– I direct a question to the Minister for Civil Aviation. I refer to the plight of 100 Australians who joined nights of a Norwegian charter flight company at Kuala Lumpur or Singapore, ostensibly to journey to London, but who were off-loaded at Amsterdam, Ostend or Vienna. If these passengers bookings were made with World Air Corporation and European Air Charter, both of which companies have Sydney and Melbourne offices, what action is contemplated by the Minister to protect the rights of the air travellers involved and what punitive action can be taken against the organisations which have welshed on their obligations to passengers?

Senator COTTON:
LP

– This will necessarily be a long answer because it involves a matter of public concern. The honourable senator was good enough to indicate yesterday that he intended to ask a question about this matter. We were happy to cooperate because we regard it as a matter that ought to be ventilated. Wc share the honourable senator’s concern over reports of recent difficulties being encountered by Australians in returning home from London on charter flights on which they had booked. The charter flights concerned did not commence in Australia but from a point outside, and it is my understanding that the passengers on the flights to which the honourable senator’s question refers and who were destined for London transshipped from the charters at certain points in continental Europe. As the flights concerned commenced overseas we are unable to confirm the names of the travel agencies or organisations, including the air carriers, who could be regarded as being responsible for the alleged difficulties over the return flight bookings.

In view of charter flight problems that have come to our notice in recent weeks, and even a little earlier than that, 1 thought it desirable to issue a Press statement generally in relation to some of the problems to be considered and drawing the attention of the travelling public to the basic rules governing charter flights and cautioning prospective charter travellers to deal only with reputable and well established organisations in arranging their charter travel ft is to be hoped that the substance of the statement wilt act as a warning to persons interested in charter travel to deal only with well established and reputable organisations and to travel on charter flights direct to and from Australia which in the main are conducted by the schedule airlines.

Action to intervene on behalf of the passengers mentioned by the honourable senator is not being contemplated. We discovered that such action would be inappropriate where the reported difficulty concerns air travel between points overseas. In the instances to which the honourable senator has drawn attention it is not clear whether the organisations through which the passenger bookings were made or the air carrier concerned was responsible for the alleged difficulties that arose in regard to the return charter flights. If overseas carriers or agents have, as the honourable senator mentioned, welshed on their obligations it is unlikely that Australian criminal law can be invoked against them. In the case of Australian organisations if- their activities infringe Australian criminal law in relation to obtaining money by fraud or false pretenses, they could be prosecuted. Passengers who feel they have a grievance could report the circumstances to the police to investigate whether criminal proceedings could be brought or they could bring civil proceedings to cover the loss sustained.

For some few weeks now we have been preparing a pamphlet which we believe will be useful to the Australian public to inform them of the benefits, gains and dangers in charter flying. This pamphlet is held up because the International Air Transport Association conference in Honolulu is examining and has been examining the overall pattern of fares and the pattern of charter group travel. We want to bring it up to date. We will give the honourable senator a copy when we receive it and, indeed, all honourable senators. If the honourable senator would like, we will give him a copy of a policy statement which at present governs charter flying. We would all be aided if as many people as possible were to make it clear that while charter flying has benefits it also has dangers and one has to be extremely careful to operate with reputable organisations against which some recourse can be had if things do not work out.

page 1053

QUESTION

AUSTRALIAN NATIONAL LINE

Senator DEVITT:

– Is the Minister representing the Minister for Shipping and Transport aware of the serious shortcomings concerning cargo handling on some Australian National Line ships and at various port terminals? At these terminals cranes and lifting equipment are inadequate to move certain loads and some types and sizes of containers built to ANL specifications. As a consequence of this, perishable cargoes have to be left behind or, if taken on board, have to be off-loaded at other than the port of final destination or alternatively must await another ship of the line which has equipment to handle the cargo. Will the Minister cause an early inquiry to be made into this situation which is causing concern to Tasmanian exporters and importers - especially of perishable commodities - whose interests are being seriously damaged and further development of some primary industries jeopardised? Further, will the Minister also indi cate the reason why developing primary industries and other industries the promotion of which demands orderly marketing cannot negotiate contracts with the ANL for the regular carriage of their products?

Senator COTTON:
LP

– That is quite a long question but I have the impression that the honourable senator is referring to ports in Tasmania and in those ports to lack of facilities for proper handling of Austraiian National Line ships. He refers to cranes and inadequate containers, either in number or size, or to the placing of them.

Senator Devitt:

– And on ships too.

Senator COTTON:

– And on ships as well. The honourable senator has asked me to direct his request to the Minister for Shipping and Transport and ask whether he will have an inquiry made into this problem. I also note the other comments he makes about the wish to have more information on why contracts cannot be arranged between the ANL and the various producers for their products. I will take all these things up with the Minister on behalf of the honourable senator.

page 1053

QUESTION

DEMONSTRATIONS AND PROTESTS

Senator POYSER:

– My question is directed to the Minister representing the Minister for Primary Industry. Is it a fact that the Government placed a ban on members of the Liberal-Country Party coalition attending today’s rally of farmers at the front of Parliament House? Is it also a fact that 12 members of the Government parties rejected invitations from the farmers to address the meeting, mainly on the excuse that they had other commitments? Did these commitments involve watching the rally from afar, that is from the steps of Parliament House and from the window of the Australian Country Party meeting room?

Senator DRAKE-BROCKMAN:
CP

– That question has nothing to do with my portfolio.

page 1053

QUESTION

DEMONSTRATIONS AND PROTESTS

Senator YOUNG:
SOUTH AUSTRALIA

– I direct a question to the Minister representing the Minister for Primary Industry. Is the Minister aware that the South Australian delegates to the so-called farmers’ march finally did not march because of the~ political implications? Is the Minister aware that the same delegates prepared in a responsible manner a manifesto for the Prime Minister and were received by him this morning? Is the Minister aware that these delegates are satisfied that they have done the right thing for primary industry by using logic and having a sense of purpose instead of playing politics?

Senator DRAKE-BROCKMAN:
CP

– I refused a moment ago to answer a question on this subject and 1 do the same now.

page 1054

QUESTION

PRIMARY PRODUCTION

Senator McMANUS:
VICTORIA

– I desire to ask a question of the Minister representing the Minister for Primary Industry. Can the Minister inform me whether the Government has arrived at any decision upon the proposals for long term loans at low interest rates for primary producers in distress?

Senator DRAKE-BROCKMAN:
CP

– I answered a question on this subject recently. I informed the honourable senator or one of his colleagues on that occasion that the Minister for Primary Industry was carefully examining this matter in an endeavour to implement a scheme. As far as I am aware no submission has been placed before the Government so far.

page 1054

QUESTION

AVIATION

Senator FITZGERALD:
NEW SOUTH WALES

– My question is directed to the Minister for Civil Aviation. I ask: Is there any truth in the report which appeared in last weekend’s ‘Sunday Telegraph’ that the new or second international airport planned for Sydney may be scrapped and that the Government may keep secret a report which has been prepared on a proposed second international airport until after the Senate election? If there is no truth in the Press report when will the Minister advise the Parliament of the recommendations of the interdepartmental committee? Further, will the Minister assure the Parliament that the contents of this report will be announced before the Senate rises for the forthcoming Senate election?

Senator COTTON:
LP

– One needs a crystal ball in this business in order to try to work out the type of information which might be sought. This is a question which I gath ered on a flight back from Perth would be asked. I think it would be quite obvious to all honourable senators that Sydney will without any doubt require a second major airport. Where it will be and what role it will fill are highly complex considerations. A great deal of study is necessary before I would be in a position to recommend such a major development, which will cost many tens of millions of dollars; in fact, I think T can say that it may cost hundreds of millions of dollars. I received about 21 weeks ago the report of the interdepartmental committee which looked into Sydney’s airport needs. In due course this report will go before the Government. Because of the complexity of the matter and the number of considerations involved some time must of necessity elapse before any firm decisions can be taken. Any opinions which have been expressed in the Press as to the outcome of these considerations must therefore be clearly premature and, I believe, speculative. 1 think all honourable senators would - be aware of the fact that substantia] investments are involved in major airports. Prior knowledge of the location of a new airport could lead to two things. Firstly, it could lead a tremendous over-involvement of public funds. Secondly, it could lead in some cases to some people being put to great disadvantage. I would not want to be a party to either of these things.

page 1054

QUESTION

CIVIL AVIATION

Senator WEBSTER:
VICTORIA

– My question is directed to the Minister for Civil Aviation. I ask: Will the Minister consider the proposal of interested rural bodies that all capital expenditure which is required for the development of rural airfields be a charge which is underwritten by the Commonwealth Government? Does the Government now provide a proportion of the initial capital and the expenditure required to repair existing rural airfields? Further, is it a fact that the Government provides the full amount of the initial capital and the expenditure on repairing all metropolitan airfields? Is there a reason for this discrimination?

Senator COTTON:
LP

– I wilt endeavour to answer this question now, and if any part of it is not answered adequately I will have an answer covering that part prepared for Senator Webster. He referred to what ls called the local ownership scheme which the Government has implemented In regard to rural airfields. Thu involves the Government, for Its part, and rural communities through their councils, for their part. In many cases, literally tremendous assets have been transferred to the local councils. After the required standard has been achieved and the airport has been handed over to the local authority, the Commonwealth provides 50 per cent of the future capital expenditure and 50 per cent of the maintenance. The reason for this is to generate local interest in the airport, to make local use of it as fully effective as is possible, and to have local knowledge for airport development in the interests of the local people. It is true that major capital airports which cost tremendous sums of money are provided fully by the Government but it will be recalled that substantial revenue is recovered from domestic and international passengers towards those costs. So the matter is not totally without some balance.

The Government at present is studying very carefully the local ownership scheme in regard to country and rural airports. I have just returned from inspecting about 22 rural airports. It will take some time to complete our studies but we are conscious of the problems that exist and the points that have been raised by the honourable senator.

page 1055

QUESTION

POSTAL DEPARTMENT

Senator WILKINSON:
WESTERN AUSTRALIA

– I direct my question to the Minister representing the Postmaster-Genera). A number of telephone subscribers in Western Australia are complaining by letter to the Press and personally to me that telephone accounts due in September have been held over and dated 2nd October to include the increased costs recently imposed. Can the Minister give any explanation for this action which would appear to be contrary to usual business practice?

Senator Dame ANNABELLE RANKIN:

– I think that the best thing that I can do is to get a detailed reply to the honourable senator’s question from the PostmasterGeneral.

page 1055

QUESTION

DEFENCE

Senator BISHOP:
SOUTH AUSTRALIA

– My question ls addressed to the Minister for Supply who represents in this chamber the Minister for Defence. Is it a fact that the Government has received a recommendation from the Royal Australian Air Force to import a number of Mirage HID jet trainers to complement its present 10 Mirage aircraft and that the new aircraft will be completely manufactured in France? Have any special arrangements yet been made with the Services to co-ordinate their purchases having regard to the requirements of the Australian aircraft manufacturing industry? If it is a fact that there is a recommendation to import additional aircraft will the Minister, before deciding on the matter, allow Australian aircraft manufacturers and the special committee which the Government has set up an opportunity to consider what should be done in respect of jet trainers for the Australian Services?

Senator Sir KENNETH ANDERSON:

I rather fancy that the honourable senator’s question stems from an article in this morning’s ‘Australian Financial Review’. The article attracted my attention because it seemed to me to be born of a statement that I made in this place as long ago as May this year to the effect that studies had been going on for some time into the possibility of obtaining an advanced trainer for prospective Mirage pilots, and that for a variety of reasons which J do not need to canvass now it was decided not to go on with the project. This morning’s article and Senator Bishop’s question are based on what is stated to be an intention now to purchase some dual Mirage aircraft for advanced training purposes. The article stated almost categorically that the aircraft will be imported, not manufactured in Australia. That statement was made against the background knowledge that wc have that the Mirage, with some exceptions in relation to various parts, ls built almost entirely in Australia under licence.

I sought some information on this matter because it concerned me as it obviously concerned Senator Bishop. I have been informed that some training for the Mirage aircraft has been done on the Winjeel, the Macchi, the Sabre, the Mirage HID, which is a dual aircraft, and the Mirage III O which is a single seater aircraft. But, for a variety of reasons, the Sabre has been eliminated and the Air Force; in fact, has been using the dual Mirage as an advanced trainer.

To come to the real issues in the question asked by Senator Bishop, I can say that consideration is being given to the acquisition of a small number of additional Mirage HID aircraft. At the present time it is not certain whether any additional aircraft will be ordered - this is only a project or in concept - pending assessment of the utilisation of the existing ones. So, the matter is only under consideration in the first place. Then, having gone, past that stage of consideration, if it is decided that the Air Force needs additional dual Mirages for training purposes, or in the event of additional aircraft being required, consideration will be given to local manufacture. The proportion of local content would depend, as it does in all such cases, on the number of aircraft to be bought. It is possible that a small number of additional dual Mirages could be built on the same basis as the 10 that we are using at present. The proportion of local content in those aircraft is substantially lower than that in the single seat aircraft because of certain things in relation to the fuselage.

So, the answer to the honourable senator’s question is that no decision has been taken yet - the Air Force is examining whether it needs any additional dual Mirages for advanced trainer purposes - and, if such a decision was taken, at that point of time a decision would have to be taken on whether we could use our own facilities for that purpose. If and when we come to that issue, I have some pretty definite and firm views on it.

page 1056

QUESTION

SYDNEY (KINGSFORD-SMITH) AIRPORT

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

– My question is directed to the Minister for Civil Aviation. Do I take it from his reply to Senator Fitzgerald’s question, namely, that there is no doubt that Sydney requires a second airport, that his Department does not intend to develop a parallel runway system at the Kingsford-Smith airport in order to cope with the expected heavily increased aircraft movement requirements in Sydney? So that members of the public who are vitally concerned about the matter can be thoroughly Informed on all aspects of what is happening in this area of aviation administration, will the Minister present to the Parliament a ministerial statement on the matter before the Senate elections so that the subject can be debated here?

Senator COTTON:
LP

-I think I am correct in saying that some years ago - I understand in about 1964 or 1965 - the previous Minister for Civil Aviation appeared on television, made a public statement and displayed diagrams showing the whole pattern of a proposed second runway at the Kingsford-Smith airport which would cope with extra traffic and which, it was thought, could be necessary before the building of a second major airport. I believe that this was made public knowledge. I am informed that the Public Works Committee of the New South Wales Parliament also studied the matter and made it public. I am seeking to have that information made available to me as soon as possible in order that I may satisfy myself as to the first part of the honourable senator’s question, which is also a query of mine. In regard to the making of a public statement that could be debated, I will give consideration to that, but I cannot really feel in my own heart that it is necessary.

page 1056

QUESTION

TELEPHONE SERVICES

Senator WEBSTER:

– Is the Minister representing the Postmaster-General aware of the appreciation felt by rural people of the Federal Government’s recent proposal to extend telephone connection lines in rural areas so that all citizens within a 15-mile radius of an exchange can obtain a telephone connection at no charge? Is it a fact that individuals who, within the past 18 months have paid line installation costs will be refunded the amount paid? Are there instances in which considerable sums were paid by primary producers? Will the Minister see that the PostmasterGeneral’s Department notifies contributors personally of this very generous measure proposed by the Federal Government and also see that refunds are paid promptly?

Senator Dame ANNABELLE RANKIN:

– The honourable senator echoes the feeling of many people in rural areas who are receiving benefits in this way. I have noted the points he has made concerning prompt repayment and the other matters he has brought forward. I will take them up with the Postmaster-General and get a reply to them. I also appreciate the honourable senator’s reference to the very important assistance that has been given in this way.

page 1057

QUESTION

SOCIAL SERVICES

Senator CAVANAGH:
SOUTH AUSTRALIA

-I ask the Minister representing the Minister for Social Services: When an agreement to separate is reached by a married couple who are unable satisfactorily to live together and are unable through religious beliefs to obtain a divorce, does such agreement deprive the wife concerned from qualifying for the deserted wives’ pension, even if the husband cannot be located and has refused to pay maintenance? If so, is this an anomaly in the social service legislation which penalises people of particular religious beliefs?

Senator Dame ANNABELLE RANKIN:

– I will get from the Minister a considered reply to the honourable senator’s question.

page 1057

QUESTION

FLYING TRAINING

Senator BISHOP:

– Has the Minister for Civil Aviation seen the August edition of Aviation News’ in which Mr Robey strongly criticises flying training methods in Australia and states that there are variations in the methods adopted by flying training schools, academies and Department of Civil Aviation examiners in different States? Is it a fact that such variations exist? Is it also true that Department of Civil Aviation examiners recently recruited from the Services often have ideas differing from those of departmental examiners with long experience? Will the Minister investigate the complaints by Mr Robey? If they are well founded, will the Minister ascertain whether the variations referred to could be the source of the recent increase in the number of aviation accidents?

Senator COTTON:
LP

– We treat as worthwhile any suggestion that may lead to an improvement in flying training or air safety. To that extent I am indebted to the honourable senator. I know Mr Robey, having met him at the Bankstown air pageant only about 4 weeks ago. Although we were together for quite a long time he did not mention to me the matter raised by the honourable senator. Nonetheless, I will obtain a copy of ‘Aviation News’ and read Mr Robey’s comments. It is very likely that there will be a variation in the approach of individuals to flying training, as anybody who has been trained to fly would understand. Each flying instructor has his own particular way of instructing people. However, the basic method and the basic requirements remain unchanged. I do not know of any variations. I do know that Department of Civil Aviation examiners are expected to be particularly strict and uniform and to ensure that standards are maintained everywhere. The honourable senators suggestion is worthwhile andI will take it up. Later I will discuss with the honourable senator what 1 find out about this matter.

page 1057

QUESTION

DESALINATION

(Question No. 442)

Senator DRURY:
SOUTH AUSTRALIA

asked the Minister representing the Minister forNational Development, upon notice:

Has the Government or the Atomic Energy Commission considered the feasibility of installing a combined nuclear power/desalination plant at Chowilla; if so, what conclusion has been reached.

Senator COTTON:
LP

– The Minister for National Development has provided the following answer to the honourable senator’s question:

No. Overseas studies indicate that nuclear power stations with capacities of many thousands of megawatts would be necessary to obtain both cheap water and power. In addition there are very considerable technical problems to be solved before dual purpose nuclear desalination plants of such sizes become practicable. This may occur towards the end of the century. I would add that nuclear units of such a size could not be fitted conveniently at present into any of the Australian electricity systems.

page 1057

QUESTION

FIRES

(Question No.530)

Senator MULVIHILL:

asked the Minister representing the Minister for National Development, upon notice:

  1. Has the Minister taken any steps since the 1969 Canberra Rural FiresConference to have Smokey the Koala’ adopted as the national symbol of fire prevention.
  2. Has he also conferred withthe appropriate State authorities on legislation to prohibit the use age the use of the word in all documents and publications and replace it by the word ‘flammable’. of the word ‘inflammable’ on containers, discour-
Senator COTTON:
LP

– The Minister for National Development has provided the following answer to the honourable senator’s quesion:

  1. The Rural Fires Conference held in Canberra during July, 1969, was jointly sponsored by the Department of National Development and the CSIRO.

No formal resolutions were passed by the Conference although the main points raised under each agenda item were summarised. The proceedings were distributed to all attending organisations, which included all State Rural Fire Control Authorities and State Forest Services.

The implementation of the decision to have Smokey the Koala’ adopted as the national symbol of fire prevention will rest with each individual State Government.

It is believed that all States except Tasmania have adopted the koala symbol. The Tasmanian Rural Fires Board has always expressed opposition to the idea as koala bears do not inhabit that State.

  1. The implementation of the decision to have legislation to prohibit the use of the word ‘inflammable’ on containers, discourage the use of the word in all documents and publications and replace it by the word ‘flammable’ also rests with each individual State Government

page 1058

QUESTION

TIMBER

(Question No. 547)

Senator KEEFFE:
through Senator O’Byrne

asked the Minister representing the Minister for National Development, upon notice:

In view of the heavy imports of timber to Australia, can the Commonwealth Softwood Forestry Agreements Act of 1967 be extended to make additional monies available, particularly in Queensland, for the establishment of new re-afforestation projects and the continuation of current projects.

Senator COTTON:
LP

– The Minister for National Development has provided the following answer to the honourable senator’s question:

An examination is now being made by the Departments of National Development and of the Treasury on the desirability of extending the Soft wood Forestry Agreements Act of 1967 for a further 5 years. On completion of this examination the matter will be considered by the Government.

page 1058

QUESTION

SECURITY FILES

(Question No. 553)

Senator POYSER:

asked the Minister representing the Prime Minister, upon notice:

Are Commonwealth security tiles made available to State Public Service Boards for the purpose of screening applicants for State public service positions; if so, was information from a Commonwealth security file provided to the Victorian Public Service Board and did this result in the rejection of the application of Mr Robert Muntz for a permanent position with the Victorian Department of Agriculture and the termination of his temporary employment with that Department.

Senator Sir KENNETH ANDERSONThe Prime Minister has provided the following answer to the honourable senator’s question:

I am informed that the answer is no.

page 1058

QUESTION

COTTON

(Question No. 564)

Senator BROWN:
VICTORIA

asked the Minister representing the Minister for Trade and Industry upon notice:

  1. What quantities of cotton are imported from: (a) the United Arab Republic; (b) The United States of America; and (c) other sources.
  2. What is the tariff paid on these imports.
  3. What quantities of synthetic apparel fibres are imported from the United States of America.
Senator Sir KENNETH ANDERSON:

– The Minister for Trade and Industry has provided the following answer to the honourable senator’s question:

  1. Total imports into Australia of raw cotton, cotton linters, and cotton waste in the years 1967-68 to 1969-70, are given in Table No. 1, with those from the United States shown separately. No imports were made from the UAR in this three-year period.

In recent years, Uganda has been the largest single supplier of Australia’s raw cotton imports (namely 9,050,000 lb, 10,316,000 lb and 8,039,000 lb respectively in the years 1967-68, 1968-69 and 1969-70).

Hong Kong, Japan, Pakistan and India are the principal sources of cotton waste imports.

  1. The rates of customs tariff applicable to cotton imports are given in Table No. 2.
  2. Australian imports of man-made textile fibres in 1967-68 to 1969-70 (under the head of Import Statistical Item 266) are given in Table No. 3, with the imports from the USA again shown separately. Man-made fibres include both the non-cellulosic (or synthetic) fibres, i.e. acrylics, polyamides, etc., and the cellulosic (or regenerated) fibres, i.e. acetates, viscoses, etc. It is not possible to give precise details of the quantities of these imported textile fibres which are used for apparel purposes, since undefined quantities are applied to other end-uses. It is to be noted also that some imported man-made fibre raw textile yarns (under the head of Import Statistical Items 65 1.6 and 651.7) are in effect used as fibres in initial stages of processing.

page 1061

QUESTION

TAXATION

(Question No. 655)

Senator WEBSTER:

asked the Minister representing the Treasurer, upon notice:

  1. What criteria are used by the Commissioner of Taxation in agreeing to an income tax-free allowance, which is paid to an employee, being accepted as a deduction from assessable income.
  2. In every instance must the employee satisfy the Commissioner that an equivalent expenditure is incurred by the taxpayer in gaining his assessable income?
  3. Would a declaration by an employer that an allowance is paid to an employee as a tax-free allowance be acceptable evidence to the Commissioner that an allowance should be accepted as tax-free.
  4. Is any individual employer’s declaration taken in such a way.
  5. Does the Commissioner, in each instance of his approval of a tax-free allowance, satisfy himselfthat an amount equivalent to the allowance has been actually expended by the taxpayer in the process of earning his assessable income.
Senator Sir KENNETH ANDERSON:

– The Treasurer has provided the following answer to the honourable senator’s question:

  1. There is no provision in the income tax law which would enable the Commissioner of Taxation to treat an allowance paid to an employee in respect of his employment as being automatically free from tax. The whole amount of any such allowance is required to be included in the assessable income of the recipient and deductions are allowed for expenses (other than those of a capital, private or domestic nature) incurred by the employee, in pursuance of the terms of the allowance, in earning his income from employment. The extent to which deductions are allowable depends upon the facts of each individual case.
  2. Taxpayers in general may always be required to furnish full details of deductions of various classes claimed by them. In practice, however, a deduction up to the amount of, for example, an expense allowance received may be allowed without detailed itemised verification in cases where the Commissioner is satisfied, either from information supplied by the taxpayer or from evidence available from other sources, that the amount of the allowance is, in relation to the employee’s other remuneration and the nature of his duties, no more than sufficient to recompense him for expenses necessarily incurred in earning his income. Where the’ claim for a deduction appears excessive, detuned substantiation is required.
  3. (4) and (5) A declaration by an employer may serve to indicate’ the nature of expenses likely to be incurred by an employee in the performance of his duties and intended by the employer to be covered by the allowance. The administrative practice of the Taxation Office is set out in the answers to questions (1) and (2) above.

page 1061

QUESTION

CITIZEN MILITARY FORCES

(Question No. 656)

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

asked the Minister representing the Minister for the Army, upon notice:

What stage have negotiations reached for the acquisition of a suitable area of land at Macksville, New South Wales, on which a proposed Citizen Military Forces training depot could be constructed.

Senator DRAKE-BROCKMAN:
CP

– The Minister for the Army has provided the following answer to the honourable senator’s question:

A suitable site has been selected and the Department of the Interior has arranged for a valuation of the properly sothat negotiations for acquisition may proceed. Acquisition is proposed this financial year.

page 1061

CHEESE

(Question No. 673)

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

asked the

Minister representing the Minister for Primary Industry:

  1. What is the wholesale price per pound of imported cheese compared with the wholesale price per pound of local cheese of the following varieties: Mature Cheddar, Blue Vein, Edam and Gouda, New Zealand Epicure and Danish Tybo.
  2. What is the retail price, per pound of imported cheese compared with the retail price per pound of local cheese of the abovementioned varieties.
Senator DRAKE-BROCKMAN:
CP

– The Minister for Primary Industry has provided the following answer:

  1. Wholesale prices for imported and domestic cheese vary according to pack, the age of the cheese and the marketing policy of the manufacturer or distributor who are free to charge what they consider the market will stand. The detailed wholesale price information requested is not collected by the Commonwealth Statistician. However, the following is the range of list prices obtained from two major wholesalers in Sydney on 24th September 1970.
  1. Retail prices can vary from store to store and from day to day. for a number of reasons such as competition and availability in each local market. The detailed retail price information requested also is not collected by the Commonwealth Statistician. However, following is the range of prices obtained from two leading retail Stores in Sydney on 24th September 1970.

page 1062

QUESTION

PAPUA AND NEW GUINEA

(Question No. 70S)

Senator KEEFFE:

asked the Minister representing the Minister for External Territories, upon notice:

  1. Can the Minister inform the Parliament of the precise terms : under which public servants in the Territory of Papua and New Guinea may make public statements.
  2. Must they be guided in their rights and obligations by a circular from the Public Service Board issued in 1970; the circular issued by the Public Service Commission in 1965; the circular issued by the Administrator in 1970; or by some other authority.
Senator WRIGHT:
Minister for Works · TASMANIA · LP

– The Minister for External Territories has provided the following answer to the honourable senator’s question:

  1. and (2) The rules governing public statements by members of the Papua and New Guinea Public Service are set down in Public Service Regulations 17 and 18, made under the Papua and New Guinea Public Service Ordinance, authorisations by the Administrator pursuant to Public Service Regulation 17 (i) (b) and a direction issued by the Public Service Board of Papua and New Guinea pursuant to Section 128 of the Papua and New Guinea Public Service Ordinance.

The circulars issued by the Papua and New Guinea Public Service Commissioner in 1965, the Papua and New Guinea Public Service Board (which has since replaced the office of Public Service Commissioner) dated 1st September 1970 and the circular issued by the Department of the Administrator on 18th February 1970 promulgate, explain and remind Public Servants of these rules.

Public Service Regulation 17 provides:

  1. An officer shall not -

    1. use for any purpose, other than the. discharge of his’ official duties, information gained by or conveyed to him through his connexion with the Public Service; or
    2. except with the consent of the Administrator, or an officer thereunto authorised by the Administrator, publicly comment upon administrative action or upon the administrator of a Department.

  2. Nothing in paragraph (b) of the last preceding subregulation contained prevents an officer from publicly commenting upon civic affairs relating to the Territory.’

Public Service Regulation 18 provides:

Except in the course of official duty, an officer shall not divulge, directly or indirectly, any information concerning public business or any matters of which he has knowledge officially.’

Pursuant to the power given to it by Section 128 of the Papua and New Guinea Public Service Ordinance the Papua and New Guinea Public Service Board in its circular of 1st September 1970 issued the following directions to all officers and employees of the Papua and New Guinea Public Service in amplification of the Regulations.

  1. An officer or employee shall not, unless he is specifically authorised or unless it is his official duty to do so:

    1. give to a news reporter information which he has through his work in the Public Service; or
    2. discuss matters concerning the administration of any Department or the public affairs of the Territory, other than civic affairs relating to the Territory, with a news reporter in circumstances such that the views of the officer or employee will be or will be likely to be the subject of a press or radio report

  2. An officer or employee other than a Departmental Head, intending to make a public address or submit for publication an article on any matter concerning the administration of any Department or the public affairs of the Territory, except a matter which falls within the description “civic affairs relating to the Territory” shall, at least three weeks in advance, submit to his Departmental Head a copy of his proposed speech or article for approval by the Administrator or officer thereunto authorised by the Administrator. A Departmental Head intending to make such an address or submit such an article for publication shall similarly submit a copy of his speech or article to the Administrator for approval.’

In 1968 a list of officers specifically authorised by the Administrator as in Regulation 17 (i) (b) to give information to Press representatives was drawn up and circulated to the Press. This list contained the names of 66 officers in Port Moresby. A revised list is now being drawn up by the Administrator. It is expected to include approximately 130 names of officers throughout the Territory including officers in all of the Territory’s 18 districts.

When the authorisations by the Administrator were issued in 1968 the Administrator stated that he considered that: authorised officers will be able to handle the bulk of Press inquiries but matters of major importance including policy issues or controversial issues should be referred to the Administrator or one of the Assistant Administrators or the official spokesman at Administration Headquarters

Officers will have to use their own discretion in deciding if a matter falls into this category.

Matters of policy include questions concerning the budget, major moves on political developments, major organisational changes in the Administration or issues where major decisions are pending. Where a policy has been announced authorised officers are permitted to supply information at their own discretion. It is emphasised that the Administrator wants the public to be as well informed as possible about the objectives, policy achievements and view points of the Government. Within the bounds of common sense as much help as possible should be given to Press representatives by those authorised to deal with them’.

An instruction issued by the Administrator last month emphasised the increased responsibility of Ministerial and Assistant Ministerial Members in the making of public statements. This was in line with the increase in responsibility of Ministerial office holders since the previous circular was issued. The Administrator stated that this did not alter the obligation of authorised officers of the Administration to provide factual information in response to Press inquiries.

page 1063

QUESTION

CIVIL AVIATION

(Question No. 714)

Senator CANT:

asked the Minister for

Civil Aviation, upon notice:

  1. What matters were taken into consideration by the Minister when he approved the recent 6 per cent increase in air fares for domestic airfines.
  2. What matters were considered when the Minister approved the recent 3 per cent increase in fares on domestic airlines.
Senator COTTON:
LP

– The answer to the honourable senator’s question is as follows:

  1. The matters taken into consideration in assessing the need for the 6 per cent increase in fares and freight rates effective from 1 August 1970 were increases in wage and salary rates which had either been granted or were under negotiation, higher charges for maintenance materials, fuel, insurance and other items already incurred by the airlines or about to be introduced by suppliers, and estimates of the airlines’ revenue position in the near future. It was estimated that these matters made it essential to increase revenue rates sufficiently to produce additional income of at least $11 million if the airlines were to achieve reasonable operating profits.
  2. The matters taken into consideration in relation to the subsequent 3 per cent increase included higher fuel costs, company taxation and postal charges as well as increases in salary and wage rates which, as a result of negotiations undertaken since 1st August, had been settled at higher levels than were anticipated previously. In all, these further extra costs were estimated to amount to about $6 million per annum, part of which will be absorbed by the airlines.

page 1063

QUESTION

COMMONWEALTH CENTRE, ADELAIDE

Senator WRIGHT:
LP

– On 10th June Senator Bishop asked me a question about the progress being made in the planning and construction of a Commonwealth Office Centre in Adelaide. On 17th June Senator Laucke asked me a similar question. The answer to those questions is as follows:

Commonwealth office construction needs in Adelaide have been under very close scrutiny in recent months and a number of alternative proposals which might lead to the construction of either a Commonwealth Centre to accommodate several departments or one office building to accommodate a single department, have been considered.

It is expected that a firm proposal will be developed shortly, and as soon as this is done I shall inform the honourable senators. It should be appreciated, however, that commencement of any Commonwealth office construction in Adelaide would be subject to other Commonwealth priorities and the availability of funds for capital works.

page 1063

QUESTION

TAXATION

(Question No. 636)

Senator MULVIHILL:

asked the Minis ter representing the Treasurer, upon notice:

Has the General Skin and Wool Company of Brisbane, the leading Australian kangaroo and skin firm, been investigated by the Taxation Department for lax evasion.

Senator Sir KENNETH ANDERSON:

– The Acting Treasurer has provided the following answer to the honourable senator’s question:

Subject to certain exceptions which do not affect the present inquiry, the Income Tax Assessment Act contains a general prohibition against the Commissioner of Taxation divulging information concerning the affairs of individual taxpayers. It is not possible, therefore, to furnish an answer to this question.

page 1064

QUESTION

CIVIL AVIATION

(Question No. 641.)

Senator RAE:
TASMANIA

asked the Minister repre senting the Minister for Civil Aviation, upon notice:

  1. What is the number of hostesses engaged by each internal airline in Australia in each type of aircraft.
  2. What is the total amount paid by each internal airline in Australia in respect of (a) wages and other allowances. (b) training expenses, and (c) any other expenses directly related to the employment of hostesses.
  3. What is the total cost (other than in respect of employment of hostesses) to internal airlines in Australia of the. provision of (a) meals and light refreshments (other than liquor) and (b) liquor.
  4. By what percentage could internal airline tare charges be reduced if the number of hostesses on aircraft were reduced to one on each and the in-flight provision of meals, light refreshments and liquor were discontinued, other than on flights lasting more than 2 hours.
Senator COTTON:
LP

– The answer to the honourable senator’s question is as follows: (1)The Air Navigation Regulations stipulate a mandatory requirement for the carriage of hostesses on aircraft operated on regular public transport service - the number varying according to seating configuration. This requirement is in the interests of the safety of passengers and is not likely to be waived. For F27’s the requirement is two hostesses, for Electras and DC9 three hostesses and for Boeing 727 four hostesses. As a matter of operating procedure, both airlines carry four hostesses on the DC9 and four or five hostesses on the Boeing 727 depending on loading andtime of operation.

  1. The expenses incurred by the airlines in respect of individual operating costs are of a confidential business nature. However, I am in a position to inform the Senate that the total amount expended by each airline in respect of expenses relating directly to the employment of hostesses is of the order of two million dollars.
  2. The total cost to each airline in respect of provision of meals is of the order of $1.25 million to$1. 5 million. The sale of liquor on aircraft is at commercial prices and there would be no cost saving by the abolition of this service. Indeed, the reverse would be the case.
  3. As mentioned in the answer to question 1, the law requires carriage of hostesses in the interests of the passengers and there is no prospect that the number could be reduced to 1 on the types of aircraft currently operated by the major airlines. As an indication to the Senate, I would say that if all meals were eliminated on air services involving a stage length of under 2 hours, a fare saving of approximately 1 per cent could be effected. If meals on all air services were abolished, and the honourable senators will quickly realise that this would involve considerable hardship on passengers to New Guinea, Darwin and Perth, then the order of the possible fare saving would be one and a half to two per cent.

page 1064

QUESTION

ROYAL AUSTRALIAN MINT

(Question No. 679)

Senator WILLESEE:

asked the Minister representing the Treasurer, upon notice:

  1. What mintings have been commissioned from the Royal Australian Mint during the last 2 years by the two companies Commemorative International Limited and Pacific Medallions Pty Ltd.
  2. Whatwas the number of medallions struck in each particular minting and the cost of materials involved.
  3. What was the charge made by the Royal Australian Mint for performing each particular minting.
Senator Sir KENNETH ANDERSON:

– The Acting Treasurer has provided the following answer to the honourable senator’s question:

  1. and (2)-
  2. Commemorative International Pty Ltd. 4,343 medals (18 ct gold) to commemorate the Captain Cook Bi-centennial Year. 2,004 medals (18 ct gold) to commemorate the 1970 Royal Visit.

Negotiations with the Company are proceeding for the production of medals to commemorate the visit of Pope Paul VI to Australia.

  1. Pacific Medallions Pty Ltd. 1,000 medals (18 ct gold) to commemorate the visit of Pope Paul VI to Australia. 1.000 medals (silver) for the same purpose.

  2. The mint has no information on the cost of the materials used. Contractors supply the Mint with the appropriate blanks for striking.

    1. The Mint is concerned only with the manufacture of the dies and with the striking of the blanks supplied to it. The Mint is charging a commercial rate for these services but the details of the charges are confidential in accordance with normal business practice,

page 1064

QUESTION

PHANTOM AIRCRAFT

(Question No.691)

Senator MILLINER:
QUEENSLAND

asked the Minister for Air, upon notice:

  1. What was the approximate number of air miles travelled by the 5 Phantom bombers on lease to the Royal Australian Air Force when flying from America to Amberley air base.
  2. Was refuelling of the Phantom bombers during the flight carried out by the use of tanker aircraft or by refuelling at airports.
  3. What is the approximate safe mileage that a Phantom bomber can fly without refuelling.
Senator DRAKE-BROCKMAN:
CP

– The answer to the honourable senator’s question is as follows:

  1. Each Phantom F4E aircraft travelled approximately 9.550 nautical miles.
  2. The Phantoms were refuelled on the ground at USAF bases and in the air from USAF KC-135 tanker aircraft.
  3. 1,300 nautical miles.

page 1065

QUESTION

POST OFFICES

(Question No. 713)

Senator WILLESEE:

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

  1. What is the present number of official post offices in Australia.
  2. What number of these post offices are permanently closed on Saturday mornings. (3)In each of the preceding 5 years what percentage of post offices have been permanently closed on Saturday mornings.
Senator Dame ANNABELLE RANKIN:

– The Postmaster-General has provided the following answer to the honourable senator’s question:

  1. 1,480 (as at 30th June 1970).
  3. Percentage of official post offices closed on Saturday mornings:

page 1065

QUESTION

NAVY

(Question No. 729)

Senator McMANUS:

asked the Minister representing the Minister for the Navy, upon notice:

What is the present naval establishment in Tasmania.

Senator DRAKE-BROCKMAN:
CP

– The Minister for the Navy has provided the following answer to the honourable senator’s question:

There is one naval establishment in Tasmania, namely HMAS Huon situated in Hobart, which performs the following tasks:

Naval Recruiting in Tasmania.

Training of RANR personnel.

The operation and maintenance of an oil fuel installation.

The complement provides for 3 officers and 17 sailors of the permanent naval force, and in addi tion 10 civil personnel for clerical and cleaning duties. At 31st August 1970 there were 3 officers and 20 sailors borne in the establishment.

The RANR complement provides for 44 officers and 107 sailors. There were 21 officers and 81 sailors borne as at 31st August 1970. These personnel arc obliged to carry out weekly evening periods of training in addition to a fortnight’s full time training per year.

There are in addition 12 officers of the RANVR, who are not under any training obligation.

page 1065

QUESTION

TELEPHONE DIRECTORIES

Will the Postmaster-General give an assurance that the 3 regional directories, bound in 1 volume and covering all subscribers as at present, will be issued to all Tasmanian subscribers rather than waiting for subscribers to make separate applications for them, and that the composite directory will be issued in the mainland States only?

The Postmaster-General has now furnished me with the following information in reply: 1 am unable to give the assurance sought by the honourable senator because it would be wasteful to supply the three regional directories to all subscribers in Tasmania when the great majority have a need only for the directory covering the region in which they are located. If a subscriber has a need for a directory covering another region in Tasmania it will be supplied on request without charge. Subscribers who make only an occasional call to another region will be able to obtain wanted numbers from the Department’s Telephone Numbers Centre without charge.

page 1065

DROUGHT RELIEF

Senator Sir KENNETH ANDERSONOn 19th August Senator Webster asked the following question:

My question is directed to the Minister representing the Prime Minister. As continuing drought in Queensland and other States is causing catastrophic circumstances for rural producers and rurally based businessmen, will the Federal Government give immediate consideration to establishing a small drought alleviation committee composed of senior officers of the Department of Primary Industry and the Treasury to investigate conditions in areas where drought is occurring and prepare a prompt report as to ways in which the Federal Government may offer effective aid to the States where drought is occurring and also to advise the Government as to the immediate legislative and financial measures which require introduction by parliaments to avoid the possible bankruptcy of individuals or the loss of property which may be forced on individuals - both producers and businessmen - due to economic circumstances which are beyond their personal control?

At that time I informed Senator Webster of the action already taken by the Government to assist States suffering from drought and that I would refer his proposal for a drought alleviation committee to the Minister for Primary Industry. I have now received advice from the Minister in the following terms:

The Australian Agricultural Council at its meeting last June, considered the question of drought in Australia and established a Consultative Committee on Drought to examine and report on problems involving inter-State, multi-State or Commonwealth-State aspects, e.g. drought relief drought rehabilitation and drought mitigation. The Committee will also consider the question of encouragement of forms of land use and farm management practices that take account of thepermanent risk of drought, as well as other matters relevant to combatting drought or ameliorating its effects on rural industries.

The Consultative Committee comprises representatives of all Stale Departments of Agriculture and the Queensland Department of Primary Industries together with representatives of CSIRO, the Bureau of Agricultural Economics and the Departments of the Interior, Treasury and Primary Industry. It will include representatives of other Commonwealth and State Authorities as necessary.

The initial meeting of the Consultative Committee was held in Sydney on 15 September. The Committee reviewed the situation in the States the procedures followed in making drought declarations and the wide range of relief measures that are extendedto graziers and farmers affected by drought. Other matters discussed related to restocking after drought and the encouragement of fodder and water conservation.

The Consultative Committee on Drought will continue its work and is to meet again later this year. It will be reporting to the next meeting of the Australian Agricultural Council early in 1971.

page 1066

QUESTION

QUESTIONS ON NOTICE

Senator MURPHY:
Leader of the Opposition · New South Wales

– While we are dealing with questions on notice, may I suggest that something be done to have the outstanding questions, some of which are many months overdue, answered as soon as possible in view of the time table that we have for the Senate’s proceedings this year.

Senator Sir KENNETH ANDERSON:
Minister for Supply · New South Wales · LP

– I would like to make a comment on what Senator Murphy has just said. As late as last week I looked at the business paper myself and suggested to my staff that something should be done about the number of questions on the notice paper, one or two of which are within my own responsibility. I will certainly take this matter up and I know that other Ministers will also do this so that wecan get answers to as many questions as possible without delay.

page 1066

ASSENT TO BILLS

Assent to the following Bills reported:

Post and Telegraph Rates Bill 1970.

Post and Telegraph Bill 1970.

page 1066

QUESTION

SUSPENSION OF SITTING

Senator Sir KENNETH ANDERSON:
Minister for Supply · New South Wales · LP

– by leave - I move:

The purpose of the motion is to enable the Senate to meet again at 10 p.m. to deal with any matter that we need to deal with and also to ensure that there is no denial of any right to any honourable senator who may wish to speak during the adjournment debate at 10.30 p.m.

Question resolved in the affirmative.

Sitting suspended from 4.11 to 10 p.m.

SALES TAX BILLS (Nos 1 to 9) 1970

Bills received from the House of Representatives.

Motion (by Senator Sir Kenneth Anderson) proposed:

That so much of the Standing Orders be suspended as would prevent the questions with regard to the several stages for the passage through the Senate of all or several of the Sales Tax Bills Nos 1 to 9 being put in one motion, at each stage, and the consideration of all or several of such Bills together in the Committee of the Whole.

Senator MURPHY:
New South WalesLeader of the Opposition

– I would like a little elucidation on what is proposed to be done because we would want separate votes to be taken on each Bill. What the Minister is proposing covers a considerable number of different matters, does it not? Is this the ordinary Sales Tax Bill with the ancillary provisions?

Senator Sir Kenneth Anderson:

– This is the normal procedure. The Bills propose to . increase the rate of sales tax fromthe present 25 per cent to 27½ per cent. The Bills give effect to this proposal.

Senator MURPHY:

-Is the motion restricted to those sales tax measures?

Senator Sir Kenneth Anderson:

– Yes.

Senator MURPHY:

– The Bills simply seek to increase the rate from 25 per cent to 27½ per cent do they?

Senator Sir Kenneth Anderson:

– Yes.

Senator MURPHY:

– I think that covers the position.

Question resolved in the affirmative.

Standing Orders suspended.

Bills (on motion by Senator Sir Kenneth Anderson) read a first time.

Second Readings

Senator Sir KENNETH ANDERSON:
Minister for Supply · New South Wales · LP

(10.4) - I move:

That the Bills be now read a second time.

The purpose of these Bills is to increase the 25 per cent rate of sales tax to 27½ per cent and so give effect to the sales tax increases announced by the Treasurer (Mr Bury) in the Budget Speech. The 9 amending Bills are necessary because the sales tax is imposed by 9 separate Acts to meet the requirement of the Constitution that an Act imposing taxation shall deal with one subject of taxation only. That is the point about which Senator Murphy was concerned. The goods affected by the increase are those listed in the Second and Fifth Schedules to the Sales Tax (Exemptions and Classifications) Act. Among the principal classes of goods affected are motor cars such as sedans and station wagons which are specified in the Fifth Schedule. The increase will not apply to motor cycles, motor buses or other commercial type vehicles such as utilities, panel vans and trucks which are currently taxed at the general rate of 15 per cent.

The Second Schedule embraces a fairly wide range of goods. The more important of these are radio and television receivers and record players; toilet and beauty preparations and shaving requisites; cameras, films and photographs; watches; jewellery and furs. A comprehensive statement listing the goods which are to be taxed at 27* per cent is being circulated for the information of honourable senators. The present rate of 2* per cent applicable to household furniture and appliances remains unaltered. So also does the general rate of 15 per cent which applies to a broad field of goods not specified in any of the sales tax schedules. The increase in rate is expected to yield additional revenue amounting to $29m in a full year. To avoid disruption of trading in goods affected by changes in sales tax rates, it has long been the practice for such changes to take effect from the day following their introduction into Parliament. Accordingly, these Bills have effect from 19th August 1970. I commend the Bills to honourable senators.

Senator MURPHY:
New South WalesLeader of the Opposition

– I do not intend to speak at length at this stage. I wish merely to indicate that the Opposition will oppose these measures. I ask for leave to continue my remarks.

Leave granted; debate adjourned.

page 1067

SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) BILL 1970

Bill received from the House of Representatives.

Standing Orders suspended.

Bill (on motion by Senator Sir Kenneth Anderson) read a first time.

Second Reading

Senator Sir KENNETH ANDERSON:
Minister for Supply · New South Wales · LP

(10.7)- I move:

That the Bill be now read a second time.

The purpose of this Bill is to amend the Sales Tax (Exemptions and Classifications) Act 1935-1967. Honourable senators will see from the explanatory memorandum that is being circulated that the Bill proposes amendments to the First Schedule to the Act which sets out the categories of goods that are exempt from sales tax. Two new exemptions which are proposed will exempt Australian-made motor vehicles for use by members of the armed forces of Canada and New Zealand stationed in Australia. The circumstances in which exemption will be allowable are to be prescribed by regulation, the intention being that they will parallel those in which exemption is currently available to United States and British servicemen. In conformity with Australia’s obligations under the Status of Forces Agreement withthe United States, the Sales Tax (Exemptions and Classifications) Act was amended in 1963 to enable United States servicemen stationed in Australia to purchase Australianmade vehicles free of sales tax. A similar exemption was subsequently provided in favour of British servicemen. The amendment now proposed will extend the exemptions to vehicles for Canadian and New Zealand servicemen. Comparable concessions are enjoyed by Australian servicemen stationed in those countries.

It is proposed that the specific exemption of goods for use by British Commonwealth Pacific Airlines Ltd - an airline no longer operating - and Qantas Airways Ltd be removed with effect from 20th August 1970. Other provisions of the sales tax law exempt such items of equipment as aircraft and aircraft parts, servicing equipment and tractors for towing aircraft. But in respect of goods not so exempted, it is considered that Qantas Airways Ltd should be in the same position as other airlines. Qantas already is liable to Commonwealth taxes other than sales tax. The Bill includes a provision to exempt goods for use, and not for sale, by the Anglo-Australian Telescope Board. The new exemption is supplementary to the Anglo-Australian Telescope Agreement Act 1970 which sets up the Anglo-Australian Telescope Board. This exemption is to commence on the date on which the Anglo-Australian Telescope Agreement Act 1970 will, by proclamation, come into operation. The remaining provisions are of a drafting nature designed to restore certain exemptions related to provisions in the Customs Act. The exemptions were inadvertently Tendered ineffective by amendments to the Customs Act that came into operation on 1st October 1969. It ls proposed that these sales tax amendments should be deemed to have been in operation since that date. T commend the Bill to honourable senators.

Debate (on motion by Senator Murphy) adjourned.

page 1068

UREA BOUNTY BILL 1970

Second Reading

Debate resumed from 17th September (vide page 669), on motion by Senator Cotton:

That the Bill be now read a second time.

Senator WILKINSON:
Western Australia

– I thought that the Minister for Civil Aviation (Senator Cotton), who is in charge of this Bill, together with the Sulphate of Ammonia Bounty Bill 1970, the Sulphuric Acid Bounty Bill 1970, the Pyrites Bounty Bill 1970 and the Cellulose Acetate Flake Bounty BUI 1970, would have suggested that the 5 Bills be taken together. I suggest that this procedure be adopted.

Senator Cotton:

– As Senator Wilkinson rose to speak I was in the process of transferring from one seat to another. It was my intention to suggest that these matters be taken together. I willingly accede to his request and thank him for the suggestion.

Senator WILKINSON:

– I think this is a wise procedure because these Bills are purely machinery matters. The purpose of the 5 measures is to extend for 6 months the bounty which operates until 30th June this year. In 1968 it became evident that the situation with regard to the manufacture of nitrogenous fertilisers and cellulose acetate flake had changed and it was considered wise to refer the manufacture of these products to the Tariff Board to ascertain whether there should be any change in the current tariff on these substances. Debate went on for some time in another place with regard to the bounties which should be paid on these substances, but it seems to me that this is not the time to examine the situation which should obtain. We should be waiting until the Tariff Board report has been considered by the Government and is presented to us for our consideration. I understand that the Tariff Board, after a fairly lengthy period - the delay being due probably to lack of staff to examine proposals such as these - has made a report on each of these 5 bounty propositions and the reports are at present in the hands of the Government.

It seems to me that at mis stage what we should do is to extend the operation of the present bounties until the reports have been presented to Parliament. The Bills propose that the bounties should not continue for any longer period than is necessary to enable the reports to be brought for consideration of Parliament, at which time the bounties would be varied as and if necessary. I think the only criticism that I can make is that the time which has elapsed between the reference of these matters to the Tariff Board and the presentation of the reports to the Government has been too long. In view of the manpower available to the Tariff Board to examine the need for a change in the level of bounties brought about by variations in the manufacture of various commodities, I suggest that too many matters are referred to the Board for its consideration. I suggest that these reports should have been presented much earlier. However, the Opposition has no objection to a continuation of the bounty at its present level on the 5 items referred to in these Bills. W,e, shall not oppose the measures. We consider that the bounties should continue until the reports have been presented to the Parliament, at which time we can deal with the matters in detail and consider whether, we are prepared to accept the recommendations or whether we think they should be varied. We do not oppose the Bills.

Senator COTTON:
New South WalesMinister for Civil Aviation · LP

– In reply - Very briefly, as Senator Wilkinson has said, we are dealing here with 5 Bills which really have been joined together for the purpose of discussion and debate. These measures are the Urea Bounty Bill 1970, the Sulphate of Ammonia Bounty Bill 1970, the Sulphuric Acid Bounty Bill 1970, the Pyrites Bounty Bill 1970 and the Cellulose Acetate Flake Bounty Bill 1970. The first 4 of these measures are intimately associated with each other because they are in the manufactured fertiliser field. As such I think the general agreement of the Senate would be forthcoming that Australian fertiliser production is an essential item of Australian primary production and needs to be sponsored and fostered. In brief one ought to make one or two comments, although the Bills are agreed to by the Opposition. The Urea Bounty Act was extended to June 1970 in the 1969 Budget session. The Government thought that the Tariff Board report would be received during that extended period. But the report was not received until the end of June 1970. The Department of Trade and Industry advises that the recommendations in the report will be submitted to Cabinet in time to know of the Government’s decision prior to 31st December 1970. The estimated cost of the urea bounty from 1st July 1970 to 31st December 1970 is $250,000.

A similar situation applies in regard to the Sulphate of Ammonia Bounty Bill. The estimated cost of the bounty for that period is $500,000. To the Sulphuric Acid Bounty Bill a similar situtation applies and the estimated cost of the bounty for that period is $225,000. As all honourable senators will be well aware, pyrites is an essential item in the manufacture of sulphuric acid. We have had some problems in Australia with pyrites disposal. A similar situation exists in relation to the Pyrites Bounty Bill and the estimated cost of the bounty in that case is $186,000. The Cellulose Acetate Flake Bounty Bill is to some extent not in quite the same situation. It is associated with some of the chemicals concerned but not with the fertiliser industries. But the general principles of timing and the problems that have been posed are common to all Bills without exception. In this case the estimated cost of the bounty for the period is $112,000. I think those explanations should satisfy the Senate and I am content, therefore, to let the matter rest.

Question resolved in the affirmative.

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

page 1069

SULPHATE OF AMMONIA BOUNTY BILL 1970

Second Reading

Consideration resumed from 17 September (vide page 670), on motion by Senator Cotton:

That the Bill be now read a second time.

Question resolved in the affirmative.

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

page 1069

SULPHURIC ACID BOUNTY BILL 1970

Second Reading

Consideration resumed from 17 September (vide page 670), on motion by Senator Cotton:

That the Bill be now read a second time.

Question resolved in the affirmative.

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

page 1070

PYRITES BOUNTY BILL 1970

Second Reading

Consideration resumed from 17 Septem ber (vide page 670), on motion by Senator Cotton:

That the Bill be now read a second time.

Question resolved in the affirmative.

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

page 1070

CELLULOSE ACETATE FLAKE BOUNTY BILL 1970

Second Reading

Consideration resumed from 17 September (vide page 671), on motion by Senator Cotton:

That the Bill be now read a second time.

Question resolved in the affirmative.

Bill read a second time.

In Committee

The Bill.

Senator WILKINSON:
Western Australia

– I interrupt the flow of this legislation to ask the Minister whether it is correct that a report has also been submitted by the Tariff Board in relation to this matter and will be dealt with in the 6-month period? This is the only report about which I am not sure.

Senator COTTON:
New South WalesMinister for Civil Aviation · LP

– Like Senator Wilkinson, I am anxious to encourage the amicable spirit of debate. I shall read some of the notes I have on the subject. The Cellulose Acetate Flake Bounty

Act was extended to 30th June 1970 In the 1969 Budget session in anticipation of the Government receiving the Tariff Board’s report during the extended period. The report did not reach the Minister for Trade and Industry (Mr McEwen) until late in June 1970. The Department of Trade and Industry will advise the Government on the recommendations contained in the report. Its advice will be submitted to Cabinet in sufficient time to enable the Government to make an announcement of its intentions prior to 31st December 1970. On 5th July 1970 the Government announced its intention to extend the Act. AsI said earlier, the estimated cost of the bounty between 1st July 1970 and 3 1st December 1970 is $112,000. Essentially the same set of circumstances apply as those 1 mentioned in my remarks earlier. Although we are dealing with a different material the chemical process is interrelated to the fertiliser section.

Bill agreed to.

Bill reported without amendment; report adopted.

Third Reading

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

page 1070

DESIGNS LAW REVIEW COMMITTEE

Senator WRIGHT:
LP

– Mr President, for the information of honourable senators I lay on the table of the Senate a statement made this day in another place by the Attorney-General (Mr Hughes) announcing the appointment of a Designs Law Review Committee.

Senate adjourned at 10.25 p.m.

Cite as: Australia, Senate, Debates, 13 October 1970, viewed 22 October 2017, <http://historichansard.net/senate/1970/19701013_senate_27_s46/>.

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