Senate
15 August 1978

31st Parliament · 1st Session

  1. Senate
  2. 31st Parliament
  3. 1978

The Senate met at 3 p.m.

page 1

SWEARING-IN OF SENATORS

His Excellency Sir Zelman Cowen, GovernorGeneral of the Commonwealth of Australia, entered the chamber and, taking his seat on the dais, said:

Honourable Senators:

I am present to administer to senators elected to serve in the Senate from 1 July 1978, and to senators appointed to fill casual vacancies, the oath or affirmation of allegiance as required by section 42 of the Constitution.

The Clerk produced and laid on the table the certificates of election for the following senators elected, on 10 December 1977, to serve in the Senate for their respective States from 1 July 1978:

New South Wales- Peter Erne Baume; James Anthony Mulvihill; Milivoj Emil Lajovic; Arthur Thomas Gietzelt; Colin Victor James Mason

Queensland- Kathryn Jean Martin; George Georges; Stanley James Collard; Malcolm Arthur Colston; David John MacGibbon.

South Australia- Anthony John Messner; Geoffrey Thomas McLaren; Harold William

Young; Ronald Charles Elstob; Baden Chapman Teague

Tasmania- Shirley Walters; Donald James Grimes; Brian Archer; Michael Carter Tate; John Watson

Victoria- Allan Joseph Missen; Gareth John Evans; David John Hamer; John Norman Button; Donald Leslie Chipp

Western Australia- Frederick Michael Chaney; Peter Alexander Walsh; Andrew Murray Thomas; Allan Charles Rocher; Ruth Nancy Coleman

The abovenamed senators made and subscribed the oath or affirmation of allegiance.

page 1

REPRESENTATION OF NEW SOUTH WALES: NEW SENATORS SWORN

The Clerk:

– Honourable senators are advised of the resignations of Senator Sir Robert Cotton on 13 July 1978, and of Senator James Robert McClelland on 2 1 July 1 978, as senators for the State of New South Wales. Pursuant to section 2 1 of the Constitution, the Governor of the State of New South Wales was notified of the vacancies. Certificates have now been received, through His Excellency the Governor-General, from the Governor of New South Wales appointing Christopher John Guelph Puplick and Kerry Walter Sibraa to fill the vacancies.

The Clerk then laid on the table the certificates of appointment of Christopher John Guelph Puplick and Kerry Walter Sibraa.

The certificates were read by the Clerk.

Senator Christopher John Guelph Puplick and Senator Kerry Walter Sibraa made and subscribed the oath or affirmation of allegiance.

His Excellency the Governor-General having retired-

page 2

ELECTION OF PRESIDENT

Senator CARRICK:
Vice-President of the Executive Council · New South WalesMinister for Education and Minister Assisting the Prime Minister in Federal Affairs · LP

- Mr Odgers, I remind the Senate that the time has come when it is necessary for the Senate to choose one of its members to be President. I propose Senator Laucke, and I move:

Senator Webster:

- Mr Odgers, I second the motion.

Senator WRIEDT:
Leader of the Opposition · Tasmania

- Mr Odgers, I propose to the Senate for its President Senator Justin O ‘Byrne, and I move:

Senator Button:

- Mr Odgers, I second the motion.

The Clerk:

– Are there any further nominations? There being no further nominations, I invite the two candidates to address the Senate.

Senator Laucke:

– I submit myself to the will of the Senate.

Senator O’Byrne:

- Mr Odgers, I submit myself to the will of the Senate.

The Clerk:

– There being two nominations, in accordance with the Standing Orders a ballot will be taken. Before proceeding to ballot, the bells will be rung for three minutes.

The bells having been rung-

The Clerk:

– The Senate will now proceed to ballot. Ballot papers will be distributed to honourable senators, who are requested to write upon the paper the name of the candidate for whom they desire to vote. The Clerks will now distribute ballot papers to all honourable senators. The candidates are Senator Laucke and Senator O’Byrne.

A ballot having been taken-

The Clerk:

– Honourable senators, the result of the ballot is as follows: Senator Laucke, 38 votes; and Senator O’Byrne, 24 votes. Senator Laucke is therefore elected President of the Senate in accordance with the Standing Orders.

Senator Laucke having been conducted to the dais-

Senator O’BYRNE:

- Mr President, I congratulate you on your election to the high office of President of the Senate. I feel certain that you will continue to preside over the Senate with your usual good humour, tolerance and great dignity, and I wish you well in this term of office.

The PRESIDENT (Senator the Hon Condor Laucke:
SOUTH AUSTRALIA

– Honourable senators, may I say how deeply and humbly conscious I am of the great honour you have conferred upon me in electing me to the high and very responsible office of President. I thank you, Senator O ‘Byrne, for your very gracious words. I thank you all for the goodwill you have shown me and for the trust and confidence that you now repose in me. I give you my assurance that during my term of office as President I shall ever strive to be worthy of your confidence and of the great traditions embodied in the institution of the Senate. 1 thank you most warmly.

Senator CARRICK (New South WalesMinister for Education)- Mr President, on behalf of Government senators- and I am sure I speak on behalf of all honourable senators- I congratulate you upon your re-election to your high office. Sir, in your past service as President you have brought to your office a dignity, an impartiality, indeed a wisdom, but above all a sensitivity to the true and unique nature of this Senate and its traditions. We have been proud to sit with you in this chamber. We acknowledge you, sir, as an outstanding President. We assure you of our loyalty and support. We wish you well and long in your office.

Senator WRIEDT (Tasmania- Leader of the Opposition)- Mr President, I support the comments of my colleague Senator O’Byrne and those of the Leader of the Government in the Senate, Senator Carrick. From experience we have found you to be, as they say, fair in your deliberations in this place. We know that every now and again we get into binds, and I have a suspicion that during the coming period we are going to get into a few more. On behalf of the Opposition I wish you well in your office of President.

Senator WEBSTER:
Minister for Science · Victoria · NCP/NP

- Mr President, I extend my congratulations to you on your being reinstalled in the office of President of the Senate. Your record as a senator and as President shows that you are worthy of the support of all honourable senators.

It is a record which inspires confidence that we in this place will receive excellence in advice and the utmost degree of impartiality in decisions from you. The office you assume is the highest that is within the power of the Senate to confer upon any of its members. I offer you the loyalty and support of my colleagues of the National Country Party as you assume your burden of office. May you continue to bring honour and credit to the Senate.

Senator CHIPP:
Victoria

- Mr President, on behalf of the Australian Democrats I extend to you our very sincere congratulations and my personal congratulations, if I may. You and I have enjoyed a personal friendship since the halcyon days of 1 966 when we went to a wine festival in South Australia together. That friendship has been maintained, and I have admired the way in which you have conducted this chamber. Senator Mason and I will be giving you every form of assistance to uphold and maintain the decorum and dignity of which this chamber is justly proud. We will make mistakes because one of us is an enthusiastic amateur and the other is a hardened professional who is still ignorant in the rather mysterious ways of the Senate. We give you our congratulations and good wishes.

Senator HARRADINE:
Tasmania

-Mr President, I join with other senators in congratulating you on being elected to the office of President of the Senate. Your office is not made easy by two factors. One is the presence of a new party, the Australian Democrats, and the other is that you still have an Independent senator. Your task is not made easy by virtue of those factors. Certainly our task is not made easy by the fact that the business of the Senate is sorted out between the Leader of the Government, the Leader of the Opposition and the various Whips, often without any reference to us. The right of an independent senator in this place, and indeed the right of any senator in this place, to voice the opinions of his or her electors does not depend on the Leader of the Government, the Leader of the Opposition or the Whips. It depends on you, Mr President. I am sure that you will continue to act in the way that you have acted over the past three years, to my knowledge, in providing the opportunity as required for independent senators and other senators who are not members of the major parties to express the viewpoints for which they were elected by the people of their particular State.

The PRESIDENT:

– May I thank honourable senators for their very kindly, gracious and generous words. I am indeed proud to be President of this Senate. I am proud of the good folk who constitute this chamber. I thank you most warmly.

Senator CARRICK (New South WalesMinister for Education)- I wish to inform honourable senators that His Excellency the Governor-General will be pleased to receive the President and such honourable senators as desire to accompany him in the Senate Opposition Party Room forthwith.

Sitting suspended from 3.49 to 4.45 p.m.

page 3

PRESENTATION TO GOVERNOR-GENERAL

The PRESIDENT:

– I have to report that, accompanied by honourable senators, I presented myself to His Excellency the Governor-General, that I advised him of my election as President of the Senate, and that His Excellency was so gracious as to congratulate me upon my election.

The President read prayers.

page 3

MINISTERIAL ARRANGEMENTS

Senator CARRICK:
New South WalesMinister for Education · LP

– I seek leave to make a statement relating to ministerial arrangements.

Leave granted.

Senator CARRICK:

-I desire to inform the Senate that, on 7 August 1978, Senator the Right Honourable R. G. Withers ceased to be Minister for Administrative Services, Vice-President of the Executive Council and Leader of the Government in the Senate. On the same day, Senator the honourable Peter Durack, Queen’s Counsel, was appointed Minister for Administrative Services. I have been appointed Leader of the Government in the Senate and VicePresident of the Executive Council. Senator Durack will be Deputy Leader of the Government in the Senate.

On 4 July, the Minister for Special Trade Representations, Mr Garland, resigned the portfolio of Veterans’ Affairs and the Minister for the Northern Territory, Mr Adermann, was appointed. Mr Adermann will continue as Minister for the Northern Territory until 1 October, during the first three months of self-government in the Territory, after which it is intended that the portfolio will be abolished and its residual functions included in the Department of Home Affairs.

The ministerial arrangements that I have announced will require some adjustments in representational arrangements in the Senate. They are: I shall represent the Prime Minister; Senator Guilfoyle will represent the Minister for Trade and Resources and the Minister for

Special Trade Representations; Senator Durack will represent the Minister for Foreign Affairs and the Minister for Defence and will continue to represent the Minister for Veterans’ Affairs; Senator Webster will represent the Minister for Home Affairs. I also inform the Senate that the Government Whip will be Senator Baume and that the Deputy Government Whip will be Senator Knight.

Senator CHIPP:
Victoria

– I seek leave to make a statement concerning the leadership of the Australian Democrats in the Senate.

Leave granted.

Senator CHIPP:

-I advise the Senate that I have had the honour to be elected parliamentary leader of the Australian Democrats and that Senator Colin Mason has been elected my Deputy Leader.

page 4

ELECTION OF CHAIRMAN OF COMMITTEES

Motion (by Senator Carrick) agreed to:

That the Senate do now proceed to elect a Chairman of Committees.

Senator WEBSTER:
Minister for Science · Victoria · NCP/NP

– I propose Senator Douglas Barr Scott to the Senate as its Chairman of Committees and move:

That Senator Douglas Barr Scott be appointed Chairman of Committees.

Senator Carrick:

– I am very happy to second the nomination.

Senator WRIEDT:
Leader of the Opposition · Tasmania

– I propose Senator Mulvihill to the Senate for its Chairman of Committees and move:

That Senator James Anthony Mulvihill be appointed Chairman of Committees.

Senator Button:

– I second the nomination.

The PRESIDENT:

– Are there any further nominations? There being no further nominations, I invite the two candidates to address the Senate.

Senator Scott:

– I submit myself to the will of the Senate.

Senator Mulvihill:

– I confidently submit myself to the will of the Senate.

The PRESIDENT:

– There being two nominations, in accordance with the Standing Orders a ballot will be taken. Before proceeding to ballot the bells will be rung for three minutes.

The bells having rung-

The PRESIDENT:

– The Senate will now proceed to ballot. Ballot papers will be distributed to honourable senators who are requested to write upon the papers the name of the candidate for whom they desire to vote. The Clerks will now distribute the ballot papers to all honourable senators. The candidates are Senator Scott and Senator Mulvihill.

A ballot having been taken-

The PRESIDENT:

– If all honourable senators have marked their ballot papers, I ask the Clerks to collect them. I invite Senator James Webster and Senator Kenneth Wriedt to act as scrutineers for the election of the Chairman of Committees.

The ballot papers having been counted-

The PRESIDENT:

– The result of the ballot is: Senator Scott, New South Wales, 37 votes; Senator Mulvihill, New South Wales, 25 votes. I declare Senator Scott of New South Wales elected as Chairman of Committees.

Senator SCOTT:
New South Wales

-Mr President and honourable senators, I would sincerely thank the Senate for having elected me to this high and responsible office of Deputy President and Chairman of Committees. In thanking the Senate and in starting my term in this office, I am aware of the performance, capacity and integrity of those who have served before me in this office. I hope that I can continue that sort of performance for the benefit of this chamber and that this chamber, with co-operation, will express itself to the Australian people for what it is- an important chamber in this Australian Parliament. I thank the Senate.

Senator MULVIHILL:
New South Wales

- Mr President, as the vanquished, I wish Senator Scott a reasonable tenure of office. As it is winter time I say to him that since Australians play four codes of football, I think we all agree that there should be a minimum of whistleblowing and that we should let the ball flow. I think that if he maintains that principle we will have good debates.

Senator CARRICK:
New South WalesLeader of the Government in the Senate · LP

- Mr President, it is my pleasure to extend to Senator Scott the warmest of congratulations upon his election to such a high office. It is indeed a very important office in the Senate, facilitating as it does the work of the Senate. Senator Scott has demonstrated over the years in this Senate the excellent qualities that he brings to the task. We know that he will do his job well. We wish him well and we promise to look to him and to help him in his task.

Senator WRIEDT (Tasmania-Leader of the Opposition)- On behalf of the Opposition, I also congratulate Senator Scott on his election as Chairman of Committees. I hope- and I think that one can expect this with some confidencethat he will continue the excellent standards that were maintained by his predecessor during the time when he was Chairman of Committees.

Senator WEBSTER (Victoria-Minister for Science)- I rise to congratulate Senator Scott. This is the first occasion on which Senator Scott has been elected to the office of Chairman of Committees. Senator Scott is an outstanding man. His term of office will reflect credit on our action, I am sure. He has a depth of parliamentary experience- it has evolved since 1970- which will be of benefit to the Senate. His service to the Parliament since that time has been excellent. Senator Scott, as the Deputy Leader of the National Country Party, brings credit on my Party and now as the Chairman of Committees he will enhance that office and maintain its traditions. My Senate colleagues of the National Country Party offer him every support.

Senator MASON:
New South Wales

-The Australian Democrats congratulate Senator Scott on his election to the position of Chairman of Committees.

Senator HARRADINE:
Tasmania

-I also congratulate Senator Scott on his election. I associate myself with the remarks made by the Leader of the Opposition (Senator Wriedt) who said that he was sure that Senator Scott would carry on the very effective work performed by his predecessor as Chairman of Committees, Senator Tom Drake-Brockman.

page 5

DEATH OF HIS HOLINESS POPE PAUL VI

Senator CARRICK:
New South WalesLeader of the Government in the Senate · LP

– It is with very deep regret indeed that I inform the Senate of the death on 6 August 1978 of His Holiness Pope Paul VI. I seek leave to move a motion of condolence.

Leave granted.

Senator CARRICK:

-I move:

Mr President, Pope Paul was the spiritual leader for the last 15 years of the world’s 700 million Roman Catholics. His term of office coincided with an upsurge of the ecumenical movement and far reaching changes in society throughout the world, arising from new points of view on human relationships, ethical values, political motivations and technological advance. Pope Paul handled these challenges calmly and wisely, with moderation, tenacity and courage. He emphasised peace as the most essential need of our time, and this was reflected in his innovation of the observance of 1 January as the World Day of Peace

His Holiness, having inherited a Church minded to pursue changes and reforms in its organisation, liturgy and social attitudes, saw to it that the changes were realistic and humane. There were also changes in Vatican policy brought about by Pope Paul in the field of international affairs. Under him, the Vatican took a much more active part in the world. Foreign policy concerns of the Holy See under Pope Paul included: The problems of the proliferation of nuclear weapons; the improvement of social welfare; assisting the development of the poorer countries; a rapprochement with China; the evolution of relations with Marxist regimes; and a desire to expand official communications with the Communist, Islamic and Asian world in order to ensure the maintenance and continuity of the freedom of Christian observance.

Pope Paul travelled widely, disregarding risks to his person, and became the first reigning Pontiff to visit all continents. We remember the warmth generated by his visit to Australia in 1970. It was during his reign that Australia opened diplomatic relations with the Holy See. These have proved of great value in the conduct of Australia’s foreign affairs. Mr President, Pope Paul was a man whose strengths and personality became clearer the longer he remained as Pope. His death has saddened this country and is a great loss to his Church and all men. I commend the motion to the Senate.

Senator WRIEDT:
Leader of the Opposition · Tasmania

– The Opposition wishes to associate itself with the motion of condolence on the death of Pope Paul VI. A great many things have been said already about this great and gentle man’s contribution to the work of the Catholic Church and the world at large. As head of the Catholic Church, Pope Paul stood in a unique position of being able to influence the minds of men beyond the territorial borders and national allegiances which constrain moves for peace in a troubled world. In that position he was able to speak to and have influence over people who, in their own countries or as between neighbours, may be terribly divided. There were times when he used his influence to try to make the world a better place in which to live.

Amongst the many events in his life there are two which were of major importance and which conveyed the real nature of the man. In 1 964 he visited Jerusalem. At that time the old walled city was still occupied by Jordanian forces, and to Jews and Christians access was extremely limited. It was at considerable risk to his life that he made the visit. He appealed constantly for a just settlement in the Arab-Israeli conflict. In 1965, when the United States of America was becoming more and more involved in the disastrous war in Vietnam, the Pope became publicly involved in the international moves for peace. Time and time again he pleaded for a Christmas truce, for negotiations for a settlement and for the humane treatment of prisoners. In December 1967 he met President Johnson and made a special plea that the United States should stop bombing Vietnam as a prelude to peace negotiations. Unfortunately the war continued, but with an admirable persistence Pope Paul, in 1968 and 1969, offered the Vatican as the site for the Vietnam peace negotiations. The concern for peace in the world extended beyond these two major conflicts. He made peace overtures to the leaders in the warring factions of Nigeria and raised over $7m for the relief of famine in India and Pakistan.

In efforts to consolidate the work of the Church, in 1966 Pope Paul met the Soviet Foreign Minister, Gromyko and later, in 1967, the Soviet President, Podgorny. The mellowing of old conflicts resulted in closer relations between the Vatican and the eastern European countries and the United Soviet Socialist Republic. Nothing can disguise the fact that Pope Paul believed in and worked towards international disarmament and a concern for the people of the world who live in constant poverty. He used his own office and wrought changes to the structure of the Catholic Church to implement those beliefs. It is sad when the world loses a man who is not tied by national sovereignty and who has shown a lifelong commitment to the ideal of peace in our time.

Senator WEBSTER:
Minister for Science · Victoria · NCP/NP

– Pope Paul earned the acclaim of millions of people for his dignified acceptance of the great difficulties that attended his 15 -year reign, and for his tireless and influential work for the poor and for world peace. One of the tributes written over the last few days stated:

Whatever may be said, or in time done, about Pope Paul ‘s guidance to the Church on matters of morality, history will probably record him as a Pope who bound the wounds of a fragmented Christianity and who travelled ceaselessly and painfully in the search for peace. His influence is likely to be both positive and permanent.

He brought the world to the Vatican, initiating and sustaining dialogue with other churches that emphasised their common Christianity and purpose. Very early in his reign he was recognised as pontiff of the poor and of peace. In 1964 he attended an international eucharistic congress in India and appealed to the nations of the world to set aside part of their arms expenditure for a fund to help poorer countries. A year later he addressed the United Nations General Assembly and asked humanity to swear an oath in the following terms:

No more war, never again war. If you wish to be brothers let the arms fall from your hands.

One cannot love while holding offensive weapons.

These were the outstanding characteristics and the great qualities of the leadership of Pope Paul VI. My National Country Party colleagues join me in this tribute.

Senator CHIPP:
Leader of the Australian Democrats · Victoria

– I wish to associate the Australian Democrats with this motion of condolence on the death of Pope Paul VI. We express our sympathy to Catholics both in Australia and throughout the world. As spiritual leader of 700 million Catholics during a most turbulent period Pope Paul’s burden was a heavy one, but he never tried to conceal the mental anguish which his responsibilities brought him. The Pope reacted with personal grief to wars and conflicts such as those in Vietnam, the Middle East and Northern Ireland. He was always ready to use his considerable moral influence in the cause of peace, both in public statements and in private diplomacy. His major pronouncement on the development of peoples gave strong leadership on development and social justice in the Third World.

This gave a new emphasis to the Christian duty of concern for the poor and suffering. It firmly committed Catholics to work for social justice. In Pope Paul’s last years he often spoke movingly of old age and death. His personal empathy with the aged and handicapped became more marked. Our best wishes go to the College of Cardinals when the Cardinals meet to choose his successor, who will inherit such an awesome and responsible task.

Senator DAVIDSON:
South Australia

– I speak in support of the motion in the name of an organisation which exists within the Parliament here in Canberra. I refer to the Parliamentary Christian Fellowship of which it is my privilege to be the President. That organisation is what its name says it is, and we number among our members in the Parliament those whose relationship to the late Pope Paul VI had a great denominational strength and personal significance. All of our members acknowledge with thanksgiving the Pope’s contribution to the maintenance of high personal principles, worthy national standards and peaceful international relations. In the world of parliamentary and political affairs, Pope Paul guided international public opinion so that the many facets of community needs should receive the best possible attention. His Christian citizenship was a reminder to us all that we have a common responsibility to our fellows. The Parliamentary Christian Fellowship mourns his passing and assures those closest to him and to his office of our kind remembrance.

Senator HARRADINE:
Tasmania

– I find it difficult to make a reasoned comment on some of the remarks that have been made about the Holy Father in this condolence motion. I will therefore refer to some of the comments that have been made in the Press and which have sought to paint the late Holy Father as either a latter day Wolsey, a diplomat trying to tread the middle path between so-called conservatives and so-called progressives within the church, and or as some sort of modern Humpty-dumpty who was afraid to fall off the wall on one side or the other. Both of those descriptions are totally unworthy of a person who was a saintly religious man and who sought the truth fearlessly. I give only two examples to those in the media who are now painting that sort of picture. I refer first to the famous encyclical of almost 10 years ago, Humanae Vitae’. That encyclical which the Holy Father wrote upheld the deeply human and divine significance of the act of procreation. Some of the people in the media who are painting the picture that I mentioned previously are the ones who, moved by vested interests, were the first to criticise the Holy Father for his encyclical, .U’.—I- Vitae’

It has often been said that the Holy Father was seeking a peace which was not a true peace; that is, a peace with justice. At no stage did the Holy Father make any statement which called for unilateral disarmament. On each occasion he was careful to state that if disarmament were to be realistic it should be multilateral. The Leader of the Government in the Senate (Senator Carrick) mentioned that the Holy Father instituted a world day of peace. I quote from his message of 1 January 1976. In respect of disarmament, he said:

Military disarmament, if it is not co constitute an unforgivable error of impossible optimism, of blind ingenuousness, of a tempting opportunity for others’ oppression, should bc common and general. Disarmament is either for everyone or it is a crime of neglect to defend oneself. Does not the sword, in the concert of historical and concrete life in society, have its own reason for being, for justice and for peace?

He was alluding to Romans 13:4. He continued:

Yes, we must admit it.

In that sense he gave the lie to those who would take unto themselves the complete misnomer of Christian pacifists. He gave the lie to those who would suggest that the biblical injunction of turning the other cheek, which is important for individuals, means that one is able to lift the head of the oppressed so that the oppressor can beat it again and again. No, the Holy Father was not that sort of person.

I have noticed that some commentators have said that one of the capabilities of the next Pope should be that he can smile. Most of the Holy Father’s writings up until about six months ago were full of Christian hope and the joy of Christian living. But certainly in the last few months the Holy Father became saddened. I am familiar with the two reasons for this. Firstly, the death of Aldo Moro was a very great personal tragedy for Pope Paul. All honourable senators will remember that the Holy Father went as far as offering his own life in exchange for that of Aldo Moro. The second matter that caused him great anguish was the passage by the Italian Parliament of laws which made for easier abortion procurement. The Holy Father was outspoken in respect of that matter. He said in his peace message this year:

Accordingly we cannot fail to disapprove of each and every offence against nascent life, and we must appeal to every Authority, and to everyone who has due competence, to work for the prohibition of procured abortion and for its remedy.

Only two months before he died he warned that doctors who carry out operations under Italy’s new abortion law would face excommunication. He was not a person treading the middle path between so-called conservatives and progressives. He was a man who realised that in life and death issues there is no middle path. Pope Paul was a saintly and learned man who was seeking religious and moral truth and who was attempting to gain unity. He has taken the world and the Christian and other churches a long way along that path.

Question resolved in the affirmative, honourable senators standing in their places.

page 7

PETITIONS

Education Funding

Senator BUTTON:

– I present the following petition from 2,40 1 citizens of Australia:

To the Honourable the President and members of the Senate in Parliament assembled. The petition of the Federation of Parents and Citizens Association of New South Wales showeth:

That as citizens of New South Wales and the parents of State school children, we are most concerned that the quality of education available in our schools be of the highest possible standard.

We believe that this can only be achieved if adequate Federal funds are provided. The recently announced policy of direct cuts to Government schools for 1979 must have an adverse effect on them.

Your Petitioners most humbly pray that the Senate, in Parliament assembled, should arrange for:

Withdrawal of the Guidelines to the Schools Commission for 1979 and acceptance of its recommendations for Government Schools.

An increase of a minimum of 5 per cent in real terms on base level programs for 1979.

Restoration of the $8m cut from the Capital Grants for Government Schools.

Increased recurrent and capital funding to Government schools. and your Petitioners, as in duty bound, will ever pray.

Here follow the signatures:

Petition received and read.

Australia and Yugoslavia Airlines Agreement

Senator MULVIHILL:

-I present the following petition from 1 10 citizens of Australia:

To the Honourable the President and Members of the Senate in Parliament assembled. The petition of the undersigned respectfully showeth:

That the majority of Australian citizens formerly of Yugoslavia are greatly disturbed by the much talked about proposal of terminating landing rights in Australia for the Yugoslav Airline JAT which would, if eventuated, greatly disturb present convenient and easy travel between Australia and Yugoslavia. This would at the same time present a hardship for many of our citizens described above, as thousands of them, through no fault of their own, can not speak English and therefore find flying by Yugoslav airlines an ideal way of travel. Further more we would find such a restriction placed upon JAT as inconsistent with our free enterprise policy and damaging to the good relations between our new and old Countries.

Your Petitioners most humbly pray that the Senate, in Parliament assembled should ensure:

That the Australian Government consults with the Government of the Socialist Republic of Yugoslavia and arranges an agreement between Qantas and JAT which will, as at present, not be to the detriment of the Australian Airline and will further assist Australian citizens of Yugoslav origin in retaining a direct air link between Australia and the country of their origin.

And your petitioners as in duty bound will ever pray.

Petition received and read.

Education Funding

Senator RYAN:
ACT

-I present the following petition from 652 citizens of Australia:

The Honourable the President and members of the Senate in Parliament assembled. The petition of the Federation of Parents and Citizens Associations of New South Wales respectfully showeth:

That as citizens of New South Wales and parents of State school children, we are most concerned that the quality of education available in our school be of the highest possible standard.

We believe that this can only be achieved if adequate Federal funds are provided. The recently announced policy of direct cuts to Government schools for 1979 must have an adverse effect on them.

Your Petitioners most humbly pray that the Senate, in Parliament assembled, should arrange for:

Withdrawal of the Guidelines to the Schools Commission for 1979 and acceptance of its recommendations for Government schools.

An increase of a minimum of5 per cent in real terms on base level programs for 1979.

Restoration of the $8m cut from the Capital Grants for Government Schools.

Increased recurrent and capital funding to Government schools.

And your petitioners as in duty bound will ever pray.

Here follow the signatures:

Petition received and read.

The Clerk:

– Petitions have been lodged for presentation as follows:

Abortion: Medical Benefits

To the Honourable the President and Senators here assembled. We the undersigned humbly pray:

  1. . That the Government ensures Item 6469 is not removed from the Standard Medical Benefits Table.
  2. That this item under which an estimated 49,145 contributors claimed in the 1 976-77 financial year, covers a legal and medically approved procedure.
  3. That the removal of this item from the schedule would destroy the concept of universal health insurance and would have the most serious repercussions for women and their health.

And your petitioners as in duty bound will ever pray. by Senator Peter Baume, Senator Button, and Senator Jessop (2 petitions).

Petitions received.

Abortions: Medical Benefits

To the Honourable the President and Members of the Senate in Parliament assembled. The Petition of the undersigned respectfully showeth:

That Item 6469 of the standard Medical Benefits Table is the means by which payment is made for the slaughter of thousands of unborn babies every year.

Your Petitioners therefore humbly pray that the Government should ensure that Item 6469 is removed from the standard Medical Benefits Table.

And your petitioners as in duty bound will ever pray. by Senator Hamer.

Petition received.

Pensioners

To the Honourable the President and Members of the Senate in Parliament assembled. The humble petition of the undersigned citizens of Australia respectfully showeth:

That those who have retired and those who are about to retire, are being severely and adversely affected by inflation and Australian economic circumstances.

The continuance of the means test on pensions causes undue harship to them.

We call on the Government to immediately abolish the means test on all aged Pensions.

To ensure a pension for all on retirement and a guarantee that all Australian citizens will retire with dignity.

Acknowledge that a pension is a ‘right and not a charity’.

And your petitioners as in duty bound will ever pray. by Senator Guilfoyle and Senator Durack.

Petitions received.

Pensions: Lone Parents

To the honourable President and members of the Senate in Parliament assembled. The humble petition of the undersigned citizens of Australia respectfully say:

That we are concerned about the discrimination which exists against the children of those parents who are in receipt of the Supporting Parents Benefit in comparison with children of single parents who receive the Widow’s Pension. Your petitioners therefore humbly pray that Parliament take immediate steps to ensure that this year’s Budget allow for lone parents to be given the right to receive a pension with the same benefits as are given with the Widow’s Pension, and we also request that Parliament take immediate steps to instigate one ( 1 ) category of Lone Parent Pensions to eliminate the discrimination currently experienced.

And your petitioners as in duty bound will ever pray. by Senator Jessop.

Petition received.

Abortions: Medical benefits

To the honourable the President and members of the Senate in Parliament assembled. The petition of the undersigned citizens of Australia respectfully showeth.

That the provision of payments for abortion through items of the Medical Benefits Schedule is an unacceptable endorsement of abortion which has now reached the levels of a national tragedy with at least 60,000 unborn babies being killed in 1977.

Your petitioners therefore humbly pray that the Government will so amend the Medical Benefits Schedule as to preclude the payment of any benefit for abortion.

And your petitioners as in duty bound will ever pray. by Senator Jessop.

Petition received.

Pensioners: Home Maintenance Loans

To the Honourable the President and Members of the Senate in Parliament assembled. The petition of the undersigned citizens of Australia respectfully showeth:

That it is necessary for the Commonwealth Government to renew for a further term of at least 3 years the States Grants (Dwellings for Pensioners) Act 1974-77, renewed for one year expiring on the 30 June 1978.

The demand for dwellings has not slackened as the waiting list (all States) of 12,060 single and 4,120 couples as at the 30 June 1 977, showeth.

Your petitioners respectfully draw the attention of the Commonwealth Government to the Report of the Committee of Inquiry into Aged Persons’ Housing 1975 under the Chairmanship of the Reverend K. Seaman (now Governor of South Australia) which recommended additional funds to State housing authorities to meet the demand for low-rental accommodation in the proportion of $4 for$ 1 with the proviso that the States do not reduce their existing expenditure and

That the Act include married pensioners eligible for supplementary assistance and migrants as specified by the Seaman Report and that particular consideration be paid to the special needs and requirements of the prospective tenants in the location and design of such dwellings.

Furthermore, your petitioners desire to draw the Government’s attention to the hardship of many pensioner home owners caused by the high cost of maintenance.

The Social Security Annual Report 1976-77 shows that 24.6 per cent, or 283,000 home owning pensioners, have a weekly income in excess of the pension of less than $6 per week.

Your petitioners strongly urge the Commonwealth Government to establish a fund whereby loans can be made to means tested pensioners for the purpose of effecting necessary maintenance to their homes. Such a loan to be at minimal interest rates sufficient to cover administrative costs and to be repaid by the estate upon the death of a single pensioner before probate or upon the death of the surviving spouse in the case of married pensioners or where two pensioners jointly own the dwelling.

Administration to be carried out by local government bodies.

And your petitioners as in duty bound will ever pray. by Senator Gietzelt.

Petition received.

Education Funding

The Honourable the President and Members of the Senate in Parliament assembled. The petition of the Federation of Parents and Citizens Associations of New South Wales respectfully showeth:

That as citizens of New South Wales and parents of State school children, we are most concerned that the quality of education available in our schools be of the highest possible standard.

We believe that this can only be achieved if adequate Federal funds are provided. The recently announced policy of direct cuts to Government schools for 1979 must have an adverse effect on them.

Your petitioners most humbly pray that the Senate, in Parliament assembled, should arrange for:

  1. Withdrawal of the Guidelines to the Schools Commission for 1 979 and acceptance of its recommendations for Government schools.
  2. An increase of a minimum of 5 per cent in real terms on base level programs for 1 979.
  3. Restoration of the $8m cut from the Capital Grants for Government schools.
  4. Increased recurrent and capital funding to Government schools.

And your petitioners as in duty bound will ever pray. by Senator Jessop and Senator Gietzelt.

Petitions received.

page 9

LEGISLATIVE ASSEMBLY OF THE NORTHERN TERRITORY: PRESENTATION OF MACE

The PRESIDENT:

– I inform the Senate that I have received from His Excellency the

Governor-General a letter advising that, in reply to the joint address concerning the presentation of a mace to the Legislative Assembly of the Northern Territory, Her Majesty the Queen was pleased to direct that a mace be presented by and on behalf of the Parliament of the Commonwealth of Australia to the Legislative Assembly to mark the conferring of responsible selfgovernment on the Northern Territory.

page 10

ASSENT TO BILLS

Assent to the following Bills reported:

Estate Duty Assessment Amendment Bill 1 978.

Estate Duty Amendment Bill 1978.

Gift Duty Assessment Amendment Bill 1978.

Gift Duty Amendment Bill 1978.

International Sugar Agreement Bill 1 978.

Loan Amendment Bill 1978.

Environment Protection (Alligator Rivers Region) Bill 1978.

National Parks and Wildlife Conservation Amendment Bill 1978.

Environment Protection (Northern Territory Supreme Court) Bill 1978.

Atomic Energy Amendment Bill 1978.

Environment Protection (Nuclear Codes) Bill 1 978.

States Grants (Schools Assistance) Amendment Bill 1 978.

States Grants (Tertiary Education Assistance) Amendment Bill 1 978.

Acts Interpretation Amendment Bill 1 978.

Administrative Changes (Consequential Provisions) Bill 1978.

Loan Consolidation and Investment Reserve Amendment Bill 1978.

Ordinances and Regulations (Notification) Bill 1 978.

Statutory Rules Publication Amendment Bill 1978.

Seat of Government (Administration) Amendment Bill 1978.

Parliamentary Contributory Superannuation Amendment Bill 1978.

Appropriation Bill (No. 3) 1977-78.

Appropriation Bill (No. 4) 1977-78.

Supply Bill (No. 1) 1978-79.

Supply Bill (No. 2) 1978-79.

States Grants (Urban Public Transport) Bill 1 978.

Customs Tarif Amendment Bill (No. 2) 1978.

Excise Tariff Amendment Bill 1978.

Customs Tariff Validation Bill 1978.

Broadcasting Stations Licence Fees Amendment Bill 1978.

Television Stations Licence Fees Amendment Bill 1978.

Broadcasting and Television Amendment Bill 1978.

Conciliation and Arbitration Amendment (Federal Court of Australia) Bill 1978.

Maritime College Bill 1978.

Pay-roll Tax (Territories) Assessment Amendment Bill 1978.

Aboriginal Councils and Associations Amendment Bill 1978.

Income Tax Assessment Amendment Bill 1 978.

Northern Territory (Self-Government) Bill 1978.

Ashmore and Cartier Islands Acceptance Amendment Bill 1978.

Remuneration Tribunals Amendment Bill 1978.

Lands Acquisition Amendment Bill 1978.

Pay-roll Tax (Territories) Assessment Amendment Bill (No. 2) 1978.

Ombudsman Amendment Bill 1978.

Northern Territory Supreme Court Amendment Bill (No. 2) 1978.

Administrative Appeals Tribunal Amendment Bill 1 978.

Administrative Decisions (Judicial Review) Amendment Bill 1978.

Commonwealth Motor Vehicles (Liability) Amendment Bill 1978.

Compensation (Commonwealth Government Employees) Amendment Bill 1978.

Air Accidents (Commonwealth Government Liability) Amendment Bill 1978.

Aboriginal Land Rights (Northern Territory) Amendment Bill (No. 3) 1978.

Wool Industry Amendment Bill 1978.

Wool Tax Amendment Bills (Nos 1 to5) 1978.

Commonwealth Banks Amendment Bill 1978.

Primary Industry Bank Amendment Bill 1978.

Housing Assistance Bill 1978.

States and Northern Territory Grants (Bluetongue Virus Control) Bill 1978.

Australian Science and Technology Council Bill 1 978.

Ministers of State Amendment Bill 1978.

Aboriginal Land Rights (Northern Territory) Amendment Bill (No. 2) 1978.

Tasmania Grant (The Mount Lyell Mining and Railway Company Limited) Amendment Bill 1978.

States (Personal Income Tax Sharing) Amendment Bill 1978.

Commonwealth Grants Commission Amendment Bill 1978.

Income Tax (Arrangements with the States) Bill 1978.

National Health Amendment Bill 1978.

Health Insurance Amendment Bill 1978.

Health Insurance Levy Assessment Amendment Bill 1978.

Hospitals and Health Services Commission (Repeal ) Bill 1978.

Trade Union Training Authority Amendment Bill 1978.

Public Service Arbitration Amendment Bill 1978.

Dairy Industry Stabilization Amendment Bill 1978.

Dairy Industry Stabilization Levy Amendment Bill 1 978.

Dairy Produce Amendment Bill 1978.

page 10

COMMISSION TO ADMINISTER OATH

The PRESIDENT:

– I inform honourable senators that I have received from His Excellency the Governor-General a commission to administer to senators the oath or affirmation of allegiance.

Commission laid on the table and read by the Clerk.

page 10

COMMONWEALTH PARLIAMENT DELEGATION TO CONSTITUTIONAL CONVENTION

The PRESIDENT:

– I inform the Senate that I have received from the Leader of the Opposition a letter nominating Senator Tate as a member of the Commonwealth Parliament Delegation to the Constitutional Convention in place of Senator James McClelland, who has ceased to be a member of the Parliament.

page 10

HOUR OF MEETING

Motion (by Senator Carrick) agreed to:

That, unless otherwise ordered, the Senate, at its rising, adjourn until tomorrow at 2. 1 5 p.m.

Sitting suspended from 5.43 to 8 p.m.

page 11

BUDGET 1978-79

Suspension of Standing Orders

Motion (by Senator Carrick) agreed to:

That so much of the Standing Orders be suspended as would prevent the Leader of the Government in the Senate speaking without limitation of time when moving that the Senate take note of the Budget Papers 1 978-79.

Senator CARRICK:
New South WalesLeader of the Government in the Senate · LP

– For the information of honourable senators I lay upon the table the following papers:

Estimates of Receipts and Summary of Estimated Expenditure for the year ending 30 June 1979

Civil Works Program 1978-79

Government Securities on Issue at 30 June 1978

Payments to or for the States, the Northern Territory and Local Government Authorities 1 978-79

Australia’s Official Development Assistance to Developing Countries 1978-79

National Income and Expenditure 1 977-78

National Accounting Estimates of Receipts and Outlays of Commonwealth Government Authorities

Income Tax Statistics

Particulars of Proposed Expenditure for the service of the year ending 30 June 1979

Particulars of Certain Proposed Expenditure in respect of the year ending 30 June 1979

I seek leave to move a motion.

Leave granted.

Senator CARRICK:

-I move:

Tonight the Treasurer is delivering in another place his Budget Speech for 1978-79.

It is my privilege to outline to the Senate the Budget proposals of the Government.

Since the last Budget, the Australian people have overwhelmingly endorsed the Government’s economic policies and objectives.

Tonight I reaffirm those objectives.

First, both for its own sake and as the only real basis for achieving our other objectives, we are determined that Australia will have still lower inflation.

Secondly, and subject to the constraints still upon the economy, we shall pursue higher levels of economic activity and greater job opportunities.

These objectives cannot be achieved without continued fiscal, monetary and wage restraint and an appropriate external policy.

For this reason, the Budget delivered tonight further restrains expenditure and reduces the deficit.

It also contains tax increases and announces significant policy decisions on health care financing arrangements and crude oil pricing.

page 11

THE ECONOMY IN OVERVIEW

The Australian economy is now responding positively to policies directed to its basic problems.

The economic scene is characterised by declining inflation, moderately expanding demand and activity and a more settled and predictable policy environment.

The great success story of 1977-78 was on the inflation front.

I simply record the facts.

For the year ended June 1976, the rate of inflation, as measured by the Consumer Price Index, was 12.3 per cent; for the year to June 1978, it had fallen to 7.9 per cent.

Through 1977-78, inflation fell much faster than had been predicted in last year’s Budget.

Reduced inflation has relieved pressures and strains throughout the economy.

A start has been made in reducing interest rates.

Lower inflation has also boosted private sector confidence and spending.

Despite these achievements, 1977-78 was not without its disappointments.

The Budget deficit substantially exceeded the original estimate, largely as a result of an unexpected shortfall in revenue.

However, there was no relaxation of expenditure restraint; in fact, actual outlays for 1977-78 exceeded the Budget estimate by only one-half of one per cent.

Many problems still remain to be solved.

High unemployment persists.

Real wages are still too high and this remains a major cause of the unacceptable levels of unemployment.

The inescapable truth which cannot be too heavily emphasised is that the real cost of labour continues to be out of line with its productivity.

Until this is put right, growth in jobs will be held back and unemployment will be difficult to reduce.

The company profit share is still too low, having changed little in 1977-78.

Externally, world demand and activity are subdued and this has had consequences for our trade account and the overall balance of payments.

None the less, the second half of 1 977-78 saw a modest resumption of private capital inflow reflecting in part improved overseas perceptions of the Australian economy and its management.

The maintenance and improvement of these perceptions are crucial to the further recovery of our economy.

In a world of subdued demand and fierce competition for markets, our comparative performance in domestic economic management is of acute and increasing significance.

It will not be sufficient for us merely to hold our own with the average performance of our trading partners.

We must do better.

A tougher and more competitive Australian economy means more investment and more job opportunities.

page 12

THE BUDGET TASK

Against this background, the Government decided that adherence to our basic economic strategy called for a substantial reduction in the Budget deficit from last year’s outcome.

We realised this meant that difficult and unpopular decisions had to be taken.

There was no other way of keeping faith with our commitment to responsible economic management.

To explain the magnitude of this task, let me spell out the background.

The forward estimates of expenditure implied, on the basis of existing tax rates, a deficit to the order of $6,000m.

These estimates normally include new spending proposals, which can be more readily put aside.

Nevertheless, it was a formidable task.

A very significant element of this projection was that the Government faced, for the first time in 20 years, a reduction of revenue in real terms.

We began the Budget process with a stringent and painstaking review of our outlays.

In that process, the prospective growth in outlays was cut to less than one half of that suggested by the forward estimates.

They are now expected to grow by only 7.7 per cent in 1978-79.

This will represent the lowest increase in outlays for ten years.

Some might argue that the Government could have achieved greater restraint in expenditures.

Further savings could indeed have been achieved by an actual cut in the money level of benefits such as pensions and family allowances.

But we were not prepared to place a disproportionately large burden upon the recipients of such benefits.

Having completed its review of outlays, which embraced decisions on health care financing arrangements with both expenditure and revenue implications, the Government faced a deficit in the order of $4,500m.

Such an outcome was utterly unacceptable to the Government; anything approaching it would have squandered the hard won gains against inflation and progress towards economic recovery.

It would have reversed our anti-inflationary policy, delivered a sharp blow to business and consumer confidence and put in jeopardy our external account and exchange rate.

The prospect of further interest rate reductions would have been replaced by the certainty of sharp interest rate increases.

Therefore to achieve our deficit target, it was necessary to raise substantial additional revenue in 1978-79.

Our task was further complicated by the need to avoid the imposition of taxes that would have significant effects on business activity and inflationary expectations.

In the final analysis, the Government decided, as an element of this revenue raising effort, to increase the standard rate of personal income tax as a temporary measure.

Let me be clear. This particular decision is a severe disappointment to a Government which has demonstrated its commitment to tax reduction and reform. I say now to those who might criticise this decision that the alternatives were far more inequitable and would have been detrimental to economic activity and inflation.

Let those who question it demonstrate that a different mix of tax measures or a significantly higher deficit would have been more conducive to the attainment of our economic objectives.

Alternatively, let them argue that a particular group such as pensioners or families should have borne a greater burden.

I turn now to the details of the Government’s expenditure and revenue decisions.

page 13

OUTLAYS

Total outlays are estimated at $28, 870m- an increase of only 7.7 per cent- in 1978-79.

This follows increases of 1 1 . 1 per cent in 1977- 78, 10.4 per cent in 1976-77 and 22.5 per cent in 1975-76.

Additional detail to what follows is provided in the Budget documents and in Ministerial statements.

page 13

STATES AND LOCAL AUTHORITIES

Net payments to States and local authorities are estimated at $10,5 12m, about 5 per cent more than in 1977-78.

Payments to States and local authorities under the tax-sharing arrangements are estimated to increase by 10.7 per cent and 8.5 per cent, respectively; these funds can be used for whatever purposes the recipients choose.

The Northern Territory will receive a block grant of $280m in 1978-79 following its attainment of self-government on 1 July 1 978.

The Government has decided that, from 1978- 79, the States’ base amounts under the natural disaster relief arrangements will be doubled and that each State will be required to meet one-quarter of any expenditure in excess of its increased base amount.

page 13

GENERAL GOVERNMENT EXPENDITURES

In our own spending, the size and cost of the public service will be trimmed back further.

Over the past three years the number of public servants in areas covered by staff ceilings has fallen by 10,650.

The current ceilings imply a further reduction in staff of 2,600, or about 0.8 per cent, during 1978-79; this is after allowing for significant increases in the Department of Social Security to improve services and tighten up existing procedures.

In the public as well as the private sector excessive increases in wages are enforcing- and must continue to enforce- an intensified search for staffeconomies.

Non-wage administrative expenditures also are being tightly controlled; departments and authorities will be required to exercise the utmost economy and, in some cases, to reduce their activities.

page 13

QUESTION

SOCIAL SECURITY AND WELFARE

This Budget provides over $8 billion for social security and welfare payments.

We have sought to contain these expenditures while maintaining assistance to the most needy.

Indexation of Pensions and Benefits

Subject to two important modifications, all pensions and benefits subject to indexation will be increased from the first payday in November by 3.4 per cent, the increase in the Consumer Price Index in the first half of 1 978.

The standard or single rate of social service pensions and benefits, for example, will rise by $1.75 to $53.20 a week while the combined married rate will rise by $2.90 to $88.70 a week.

The two modifications are:

First, in future pension increases for persons aged over 70 will be subject to an income test. This decision will apply to the November pension increase but will not apply to blind pensioners. I emphasize that present levels of pension for persons aged over 70 are not affected by this decision; they will continue in full and will not be subject to an income test.

Secondly, in future unemployment benefits will be automatically indexed only for recipients with dependants. For recipients without dependants, benefits will be reviewed annually at Budget time. The Government does not propose to increase benefits for these recipients in this Budget.

The Government has also decided that, after the November increase, indexation adjustments to pensions will be made annually each November.

This decision has been taken in the light of the significant reduction in inflation which this Government has achieved since its return to office.

The PRESIDENT:

– Order! I request all honourable senators to listen to the Budget Speech now being delivered by the Minister. There will be plenty of opportunity for debate later on. I ask Senator McLaren to leave his remarks until the appropriate time, when he may speak on the Budget.

Senator McLaren:

– They will be strong, too.

The PRESIDENT:

– The honourable senator is interjecting too often.

Senator CARRICK:
LP

– The Budget Speech continues:

Family Allowances

The Government will not subject family allowances for dependent children to a general means test or to taxation.

We have, however, decided that family allowances will be income-tested on the basis of the child ‘s income.

From 1 January 1979, allowances will be paid as at present in respect of each child having an income of $312 or less in 1977-78 but will be reduced at the rate of 25 cents in the dollar on account of any income in excess of $3 12 received by the child.

Parents of children with a separate income above $312 a year will therefore receive a reduced benefit in respect of such children.

Children receiving certain student allowances will cease to be eligible for family allowances but adjustments will be made to the relevant student allowances.

Family allowances, orphan’s pension, handicapped child’s allowance and additional pension or benefit for a child will generally no longer be payable in respect of children who are classed as living abroad on a permanent basis.

Maternity Allowances

The Government believes that maternity allowances have been superseded by health care and family allowance arrangements and has therefore decided to abolish this benefit for births occurring after 3 1 October 1 978.

Other Programs

To assist those most in need this Budget includes substantially increased provisions for voluntary organisations to provide and maintain facilities for handicapped people and accommodation for aged persons, and for programs of direct assistance to Aboriginals.

Provision is also being made to extend the maximum age for payment of handicapped child’s allowance to handicapped full-time students not in receipt of an invalid pension from 16 years to 25 years.

page 14

HEALTH

Although the changes made by this Government over the past 2!6 years have achieved significant economies and improvements in the health care arrangements we inherited, the Government believes these arrangements remain complicated and can be further simplified and improved.

We have therefore decided upon several major changes to existing arrangements which, while producing an immediately adverse budgetary effect, are more consistent with our longer-term objectives in this area and remove much of the confusion and complexity from present arrangements.

These changes keep intact our belief that the Government should provide a certain basic but universal health cover for all Australians.

They preserve our existing commitment to a more generous system of cover for pensioners and socially disadvantaged people.

The changes also reflect the Government’s view that, having provided a basic cover, it should be left to the individual to decide whether he or she wishes to take out further insurance and, if so, the type and quality of that further insurance.

The changes, to be effective from 1 November 1978, are: the abolition of the health insurance levy and associated with that the abolition of compulsory private health insurance for non-levy payers; the entitlement of all eligible residents to a basic medical benefit totally funded by the Commonwealth from general revenue which is the greater of 40 per cent of schedule medical fees or the amount of schedule medical fees less $20 per professional service; and the termination of the Medibank Standard functions of the Health Insurance Commission.

These changes will not disturb existing arrangements whereby all eligible residents without hospital insurance cover are entitled to standard ward accommodation and treatment in public hospitals at no direct cost to them.

The current arrangements between the Commonwealth and the States for hospital costsharing will continue.

Those desiring shared or private ward accommodation with choice of doctor or private hospital accommodation will be free, as at present, to take out insurance with registered private health funds. Such insurance will be, of course, entirely optional.

The Government is looking at the level of public hospital bed day charges for shared and private ward accommodation in the course of achieving its stated objective of greater rationalisation and efficiency in hospitals- extensive negotiations with the States are already under way.

The 40 per cent/$20 medical benefit, which will be paid by registered private health insurance funds on behalf of the Commonwealth, will leave substantially unchanged the recently announced arrangements relating to Pensioner Health Benefit card-holders or to people identified by their doctors as socially disadvantaged.

Doctors will continue to bulk bill the Commonwealth in respect of Pensioner Health Benefit card-holders on the basis of 85 per cent/$5.

People identified by their doctors as socially disadvantaged will be bulk-billed on the basis of 75 per cent for all services, regardless of cost.

Fuller details of these changes will be provided by the Minister for Health later this evening.

The immediate significance for existing levy payers is that from 1 November 1 978 when they cease paying the levy they can choose, if they wish, to make arrangements either through Medibank Private- whose functions will be continued- or a private health insurance fund to secure cover for part or all of the schedule fee not covered by the Commonwealth’s proposals.

For persons with private health insurance the Government expects a significant reduction in health insurance premiums as a result of these measures.

The new measures will add an estimated $138m to Budget outlays in 1978-79 and $305m in a full year; in addition, abolition of the levy will reduce receipts by an estimated $197m in 1 978-79 and $3 16m in a full year.

Finally, these measures can be expected to subtract significantly from the Consumer Price Index for the December quarter.

page 15

EDUCATION

The Budget provides for Commonwealth expenditure of almost $2,500m on education, 6 per cent more than last year.

Our decisions in this area will maintain current total intakes of students into universities and colleges of advanced education in 1 979 and reflect, in a major way, greater support for technical and further education.

In April a Working Party of the Tertiary Education Commission issued a draft report recommending that present arrangements for study leave in universities and colleges of advanced education be tightened up; the Government proposes to take action, effective from 1 January 1979, to that end but will await the Commission’s final report before announcing its decisions.

page 15

HOUSING

Advances to be provided under the new three year Commonwealth-State Housing Agreements, together with funds available from rents and sales, will make possible total State Government expenditure on welfare housing of the same order in 1978-79 as in 1977-78.

Under a new three year scheme, grants of $ 14m- an increase of $4m- will be provided to the States for rental assistance to pensioners, including married couples.

The Budget also includes a capital advance of $10m for Defence Service Homes and $20m for Home Savings Grants; these provisions will necessitate some increase in waiting periods for assistance.

I shall say more later about the general availability of finance for housing.

page 15

DEFENCE

The maintenance of an adequate defence capability remains a high priority for this Government.

Despite stringent budgetary constraints, an amount of $2,50 lm has been provided for defence purposes.

This provision implies an increase in spending, in real terms, of about 1 per cent this year.

Expenditure on defence capital equipment is estimated to increase by $40m- or almost 13 per cent-to$355m.

page 15

OVERSEAS AID

Expenditure on Australia’s overseas aid program, virtually all of it under firm commitments made to developing countries and international aid organisations, is estimated to increase by 8.6 per cent to $455m.

page 15

IMMIGRATION

We are committed to contributing to the resettlement of Indo-Chinese refugees; some 10,000 refugees will be re-settled in Australia in 1978-79.

In addition to the refugee program, the Government will fund assisted passages for persons already cleared for passage in 1978-79 and for approved applicants having skills and qualifications which are in short supply in Australia.

In line with the Galbally Committee recommendations, $6. 5m is provided to increase the scope of post-arrival programs and services for migrants; this includes additional funds for adult and child migrant education, the extension of ethnic radio and Sim for pilot ethnic television transmission.

page 16

TRAINING PROGRAMS

Last year expenditure on training programs increased by 56 per cent to $120m; a further increase of 44 percent- to $ 173m- is provided for this year.

In June 1978 more than 1 1 1,000 persons were being trained under Commonwealth assisted training programs.

Experience suggests that the Special Youth Employment Training Program is unduly advantaging younger age groups to the detriment of older age groups.

Against this background, the Government has decided to reduce the maximum training period under the Program from six months to four months, and to reduce the allowance paid to employers from $67 a week per trainee to $45 a week.

page 16

TRANSPORT AND COMMUNICATIONS

Transport

Outlays on transport are estimated at $787m and include increased payments for roads, civil aviation services and facilities, and shipping subsidies to Tasmania.

Provision is made also for initial advances under new five year programs to improve urban public transport and to upgrade the national railways network. $60m is provided to meet expected operating losses of the Australian National Railways Commission; we are concerned about these mounting losses and have initiated steps to identify possible solutions.

Full recovery of the costs attributable to airline operations on domestic trunk routes will be achieved within the next two financial years; to this end, attributable revenues from these operations are to be increased by $7.7m this year.

For general aviation, air navigation charges will be increased by 15 per cent from 1 December 1978.

Light dues levied on shipping will not be increased this year.

Communications

In 1978-79, for the first time, the capital program of the Australian Telecommunications Commission is being financed wholly from internal sources and from non-budget borrowings.

page 16

ASSISTANCE TO INDUSTRY

Rural Industries

Increased provisions are included in this Budget for rural reconstruction and adjustment, wool research and promotion, the control and eradication of cattle diseases, and the underwriting of dairy products. $40m is also included for the continuation of the superphosphate bounty.

The nitrogenous fertilizer subsidy is to be extended for one year from 1 January 1979 but at a reduced rate of $40 a tonne during that period; the cost of this subsidy is estimated at $l0m in 1978-79.

The scheme introduced earlier this year to reduce the price of certain petroleum products to consumers in country areas is estimated to cost $40m in 1978-79.

Consideration has been given to levying producers to recover a greater share of the costs of providing export inspection services and cattle disease eradication campaigns.

The Government has decided not to increase charges at this stage but will review the situation later in the year in the light of the economic situation of the cattle industry at that time.

The Primary Industry Bank of Australia has now been incorporated and will commence operations shortly.

The Government has decided to offer to assist the Bank by investing with it funds from the Income Equalisation Deposits Trust Account.

Manufacturing and Other Industry Assistance

The policies of this Government have been of major assistance to Australian manufacturing industry.

We have reduced inflation substantially and started to reduce interest rates- developments critical to industry confidence and prospects.

The benefits to industry of the investment allowance and the trading stock valuation adjustment continue.

Our new export incentives scheme has been announced and this Budget provides a total of $58m by way of direct assistance to exporters, $27m more than last year.

Despite the difficult budgetary position, $24m is being provided for industrial research and development grants in 1978-79; $10m more than last year.

This increase will support important new initiatives and is designed to improve the efficiency and international competitiveness of Australian industry.

In addition, over Sim will be provided to support productivity improvement programs in industry.

A community-wide program- to be known as Project Australia’- and designed to increase awareness of Australian industry’s skills, achievements and potential, will be launched in 1978-79. $l.lm has been allocated for the program; further details will be provided by the Minister for Industry and Commerce.

A further $4m will be provided in 1978-79 to expand energy research and development.

The Commonwealth’s share of the costs of developing the Ranger uranium deposits is estimated at $44m in 1978-79; $20m of this will be provided from the Budget, with the Australian Atomic Energy Commission raising the balance through borrowings.

page 17

CULTURE AND RECREATION

Provision is made for important cultural and recreational activities.

In addition to increased allocations for the National Broadcasting and Television Service, the Australia Council, and the National Gallery, $2.5m is included as the first instalment of the $10m grant being provided to Queensland for staging the 1982 Commonwealth Games.

page 17

MAINTENANCE OF EXPENDITURE RESTRAINT

In each of the past three financial years the Government has aimed to hold Budget outlays within the original Budget estimates; we achieved that aim in 1975-76 and 1976-77 while the small over-run in 1977-78 was more than accounted for by decisions taken after the Budget to meet unforeseen needs.

In line with our firm commitment to expenditure restraint, the Government again will be aiming to hold total outlays within the Budget estimates in 1978-79.

page 17

RECEIPTS

I turn now to receipts.

As already indicated, the Government has found it necessary- despite the most thorough review of our expenditures- to raise substantial additional revenue in 1978-79.

We have chosen to do this in the most equitable and economically responsible manner possible.

I now detail the tax changes.

page 17

INDIRECT TAXATION

Some increases in this area were necessary.

However, in framing our decisions, we were concerned to minimize their impact upon inflation and inflationary expectations as well as their effects on economic activity.

Excises

None of the excises, with the exception of those on petroleum products and crude oil, have been increased since 1975; the ‘real’ rate of such duties during this inflationary period has therefore declined.

For each of the proposed changes in excise, commensurate increases in the relevant customs duties will be made, and existing exemptions will continue to apply.

The new rates will be effective as from tonight.

The increase in excise on beer- only the third in twenty years- will be 12.6 cents per litre; this is equivalent to roughly 3% cents on the price of a glass of beer and is estimated to raise about $194m extra in 1978-79 and $222m in a full year.

The rates of excise on potable spirits will be increased so as to raise the general rate to $ 18.75 per litre of alcohol, and bar prices by about 10 cents a nip; this is estimated to yield an additional $ 121m in 1978-79 and $139m in a full year.

The rate of excise on cigarettes will be increased by $5.39 per kilogram, to $24.75 per kilogram, an increase equivalent to about 10 cents on a packet of 20; commensurate increases will be made in excises on other tobacco products, to yield in all an estimated $120m extra in 1 978-79 and $ 1 36m in a full year.

Details are provided in Statement No. 4 attached to the Treasurer’s Budget Speech.

The Minister for Business and Consumer Affairs will introduce legislation later tonight to give effect to these proposals.

Sales Tax

We have made no increase in any of the rates of sales tax.

Indeed, we have gone further and have decided to reduce the rate of tax on motor cars and station wagons from 27V£ per cent to the general rate of 1 5 per cent.

This means that the price of a car now costing some $7,000 should be reduced by roughly $530.

The cost to revenue of this change, after allowance for some likely gain in sales, is estimated to be about $155m in 1978-79 and $196m in a full year.

Coal Export Duty

The Government has decided to delay the phasing out of the remaining duty on coal exports.

This duty will now not be abolished until midnight on 30 June 1979.

page 18

DEPARTURE TAX ON OVERSEAS TRAVEL

The Government has decided to introduce a general revenue tax of $10 on adults departing from Australia by sea or air; the tax, which will operate from about mid-September 1978, will be collected both from Australian residents and from overseas visitors when leaving Australia.

The tax is estimated to raise $ 10m in 1978-79 and $ 1 3m in a full year.

Further details will be given by the Minister for Immigration and Ethnic Affairs at a later date.

page 18

IMPORT QUOTAS

Import quotas have a certain scarcity value and confer on importers who hold them a substantial advantage over those who do notgiving rise, in many cases, to a ‘ monopoly ‘ profit; by contrast, protection provided by the tariff gives rise to increased duty collections rather than increased profits for importers.

The Government has therefore decided to impose, on certain goods subject to tariff quota and import licensing controls, a special additional customs duty of 12!£ per cent.

My colleague, the Minister for Business and Consumer Affairs, will be introducing a Bill to amend the Customs Tariff Act later in the evening; this Bill will define the goods which are subject to the additional customs duty.

I would like to point out that it is not intended that these arrangements should have any additional protective effect.

This measure will produce additional revenue of about $65m in 1978-79 and about $75m in a full year.

page 18

CRUDE OIL POLICY AND THE PRODUCTION LEVY

Since the OPEC countries quadrupled the world price of crude oil in 1973-74, Australians have continued to enjoy artificially low prices for crude oil.

While the rest of the world was facing up to the inescapable fact that the days of cheap energy were over, Australians- even after the imposition in the 1975-76 Budget of a $2 per barrel production levy- were continuing to pay less than half of the world price for Australianproduced crude oil.

Subsidised indigenous oil prices encouraged a wasteful use of a key energy resource and inhibited the adoption of more energy-efficient processes and technologies; in recognition of this the Government moved last year towards a more realistic pricing policy for Australian-produced crude oil.

The move towards world prices for producers of ‘old’ oil announced at that time was a gradual one, with correspondingly gradual benefits to conservation and improved exploitation of known reserves.

In 1 978-79 the proportion of local crude oil production sold to refiners at less than world prices would have been about 70 per cent, involving, in effect, a subsidy to petroleum product users of some $800m.

In the light both of the budgetary situation and the desirability of improving energy use and the allocation of resources, the Government has decided that all Australian-produced crude oil should, from tomorrow, be priced to refineries at import parity levels; this will mean that consumers of petroleum products will in future pay prices based on world oil prices.

However, the proceeds of the increased price paid by refineries as a result of this decision will accrue in the first instance to the Government; the price to producers will continue to reflect the arrangements announced last year.

These results will be achieved by, in effect, increasing the present production levy on ‘nonparity ‘ oil by an amount that will bring the price of such oil to refiners to import parity levels; this will bring the price to refiners of all domestic production to import parity.

The Minister for Business and Consumer Affairs will introduce legislation later tonight to give effect to these proposals; in brief, however, the new arrangements involve the imposition of a production levy at the rate required to bring the price of ‘non-parity’ oil in Bass Strait up to import parity, with variable rebates being allowed to reflect, on the one hand, the maintenance of a net levy of about $3 a barrel on ‘import parity’ oil and, on the other hand, the slight differences between Bass Strait and elsewhere in both import parity prices and non-parity prices.

The net effect of these arrangements will be to increase immediately the production levy on Bass Strait ‘non-parity’ oil from the present rate of $18.90 per kilolitre (about $3 per barrel) to $64.53 per kilolitre (about $10.26 per barrel) for the period ending 31 December 1978; for Barrow Island the net levy paid on ‘non-parity’ oil will be $61.39 per kilolitre (about $9.76 per barrel).

It is anticipated that this decision will add about VA cents per litre to the price of petrol (roughly 16 cents per gallon).

Retail prices for petrol in Australia vary considerably; however, the maximum allowable retail price for premium petrol in Sydney is now 2 1 cents per litre, and even with the increase expected, would remain much lower than the price paid by consumers in most countries comparable to Australia.

For example, during the first quarter of 1978 consumers were paying 49 cents per litre in Italy, 44 cents in France and Japan, and 28 cents in the UK.

New rates for the standard levy and rebates for the period 1 January to 30 June 1979 will be announced at the appropriate time following the determination of import parity prices for that period by the Minister for National Development.

On the basis of existing import parity prices, this increase is estimated to raise additional revenue in 1 978-79 of $676m; there will be some offset in excise collections from petroleum products, reflecting the effects of the rise in the prices of such products on the demand for them.

In other respects, the pricing arrangements announced in last year’s Budget will be unchanged.

As then indicated, producers of ‘old’ oil will obtain import parity prices (less the existing levy of $ 1 8.90 per kilolitre) for increasing proportions of production from existing fields, with the proportions specified over the period to 1 980-8 1 and moving to 100 per cent as soon as possible thereafter; only for refiners (and hence consumers) is the inevitable move to world prices being accelerated.

The levy will remain at $ 1 8.90 per kilolitre on import parity ‘ oil; as the proportion of that oil in total production increases, collections from the new rates of levy will fall.

Those fields currently producing less than 6 million barrels per day, including Moonie, already attract full import parity, and the levy in respect of their total production will remain unchanged.

As announced in last year’s Budget Speech the Government will review, prior to the end of 1980-81, the further progression to be made towards import parity for producers from existing fields.

page 19

INDIRECT TAXATION, THE CPI AND WAGES

The increased cost of petroleum products flowing from the change in crude oil policy is estimated to have a direct impact on the December quarter Consumer Price Index of about 0.7 percentage points, with some further indirect effects in later quarters.

As the Conciliation and Arbitration Commission recognised in its judgment arising out of the December quarter 1977 CPI increase, if the increase in the CPI resulting from these oil pricing policies were to flow through into wages, the Government’s policy objective of more restrained energy use would be thwarted.

Accordingly, at the appropriate time, the Government will be asking the Commission to again discount the CPI for the effects of the oil conservation policy before considering any wage adjustment.

In the same way, the other indirect tax changes I announced earlier tonight have been introduced to maintain responsible fiscal and monetary management; the Government intends that their net effect should fall on purchasers of the goods involved and not, through the wage determination mechanism, upon employers.

It would defeat that intention if the effect which these taxes will have on the CPI- about half a percentage point- were allowed to flow through into wages.

Consequently, the Commonwealth will also be arguing in the appropriate National Wage Case that the CPI should be discounted, for wage adjustment purposes, for the effects of these taxation measures.

page 19

INCOME TAX

Standard Rate

As foreshadowed earlier, the Government has decided that as a temporary measure for 1978-79 only, the standard rate of personal income tax will be increased by Vh per cent, from 32 to 33 lA per cent; there will be corresponding increases, to 4716 per cent and 6lA per cent, at higher levels of income.

The relevant legislation will be expressed to terminate at the end of the current financial year.

The full-year gain to revenue from this change is estimated to be $570m.

It is intended to adjust pay-as-you-earn instalment deductions from 1 November 1978.

The increase is effective from 1 July, and therefore the extra deduction to be made from a taxpayer’s wages or salary after 1 November will be designed to meet his or her additional tax liability for the whole of 1978-79 and not just for the period after 1 November.

The Ite per cent rate increase for 1978-79 will also be reflected in the calculation of provisional tax.

Even after this change, gross PA YE collections in 1978-79 are estimated to increase by 7.1 per cent compared with 7.8 per cent in 1 977-78; total collections from individuals are estimated to increase by 6.7 per cent this year, compared with 9.7 per cent in 1977.78.

This temporary increase should also be seen in the light of the cumulative benefits that individual taxpayers have derived from the tax reforms of this Government.

To illustrate, the cost to revenue of full tax indexation in 1976-77 was $990m; in 1977-78 the cost of full indexation and the rate scale reform was $ 1370m; the cost in 1978-79 of half indexation and rate scale reform, after allowance for the temporary standard rate increase I have just mentioned, will be about $700m.

Provisional Tax

The Government has decided to amend the law relating to self-assessment of provisional tax so that additional tax will be payable where the estimated income for 1 978-79 or any subsequent year turns out to be more than 10 per cent (instead of 20 per cent at present) below the actual income for that year.

This decision reflects the Government’s concern at mounting evidence of deliberate underestimation of taxable income for provisional tax purposes.

This change will not in any way disturb the discretion now available to the Commissioner of Taxation to remit in whole or in part additional tax otherwise payable in the event that reasonable grounds exist for the under-estimation having occurred.

Taxation of Certain Lump Sum Payments

There will be no change to the existing situation where superannuation and other retirement benefits are taxable as to only 5 per cent of the amount of the lump sum benefit.

However, the Government has decided to alter the existing basis for taxing lump sum payments received on retirement or termination of employment for unused annual and long service leave.

At present, with only 5 per cent of lump sum payments received for unused annual and long service leave subject to taxation on retirement, there is an encouragement not to take such leave during the taxpayer’s working life; we believe that the tax system should not have that effect.

After tonight, the whole of lump sum payments for unused annual leave will be taxed in full as ordinary income.

Lump sum payments in respect of unused long service leave (including payments in the nature of long service leave) for qualifying service after tonight will be taxed at the standard rate of tax (33te per cent this year); however, such payments in respect of long service leave, for service prior to tonight will continue to be taxed under the present arrangements.

The changes will not alter the existing rule that payments on death to a spouse or dependants or legal personal representative of a deceased employee in respect of accrued annual leave or accrued long service leave are not subject to taxation.

The change to the taxation of payments for unused annual leave entitlements is estimated to produce a gain to revenue of $70m in 1978-79 and $110m in a full year; reflecting the long phasing-in arrangements that are proposed, the change in respect of the taxation of long service leave payments is estimated to result in a revenue gain of $6 min 1978-79.

Home Loan Interest Deductibility

The contribution of this scheme to home purchase has not been matched by its cost to revenue.

Accordingly, interest on home loans that accrues on or after 1 November 1978 will no longer be allowable as an income tax deduction; there will be a saving to revenue of $3m in 1978-79 and $3 1 m in a full year.

Commonwealth Post-graduate Awards

Commonwealth awards under the Postgraduate Awards Scheme, which are not means tested, are essentially of an income nature and it is appropriate that they should be taxed like other income.

Accordingly, these awards are to be made assessable income in the hands of the recipient with effect from 1 November 1978 with an estimated gain to revenue of $0.6m in 1978-79 and $ 1 m in a full year.

Social Welfare Payments

The Government has also decided to extend the 1976 decision to subject to tax a wide range of social welfare payments; the other kinds of payments now to be subject to tax, as from 1 November 1978, are:

Rehabilitation training allowance

Rehabilitation living-away-from-home allowance

Incentive allowance (rehabilitation)

Invalid pension for persons under age pension age

Sheltered employment allowance

Repatriation service pension on account of unemployability or pulmonary tuberculosis for persons under age pension age

Tuberculosis allowance for persons under age pension age, and

Tuberculosis housekeeper allowance.

People in receipt of these payments will not be disadvantaged by comparison with other income recipients; almost all of those solely dependent on the benefit will be below the tax threshold; others will become liable for tax only if they have other income above their social welfare payments sufficient to bring them above the tax threshold.

The gain to revenue from this proposal is estimated at $3m in 1978-79 and $5m in a full year.

Rebates for the Maintenance of Overseas Dependants

The present law allows rebates for the maintenance of dependants overseas- a spouse, parents or parents-in-law and invalid relatives.

In many cases, the dependant in question may have never been to, nor have any intention of coming to Australia; in other cases, the provision has led to flagrant abuse.

In the light of this, the Government has decided to withdraw the rebates for overseasresident dependants as from 1 November 1978; for 1978-79, the maximum amount of rebate claimable for each eligible overseas dependant will thus be reduced to one-third of the present amount.

Withdrawal of the rebates will not affect the rebate claimable for a dependent spouse overseas pending early migration to Australia.

The gain to revenue in 1978-79 is estimated to be $8m and for a full year $20m.

page 21

TAX AVOIDANCE

In recent months the Government has made a vigorous assault on tax avoidance; this will continue in 1978-79.

The time is long since past when Governments or the community should tolerate the blatant, artificial and contrived means whereby certain sections of the community seek to pay little or no tax to the detriment of the general body of taxpayers and the equity of the tax system.

As a further initiative in this area, the Government has decided upon a number of measures designed to curb avoidance of tax liabilities in cases where cash is paid for various forms of services without deductions for tax.

Full details are provided in a separate statement I have released tonight.

The Government has also decided to make some adjustments to the averaging system for primary producers, so as to confine its benefits more strictly to income derived from primary production; under these new arrangements averaging will still apply to taxable income from primary production, and may also apply to a limited amount of income derived from other sources.

If non-primary production income is $5,000 or less in the income year, averaging will apply to all of it; the allowance of $5,000 will shade out by one dollar for each dollar of non-primary production income in excess of $5,000, thus shading out entirely when non-primary production income reaches $ 10,000.

This change will ensure that persons with minimal interests or activities in primary production are not able to abuse the system to reduce their tax on non-primary production income, and will thereby inhibit the use of tax avoidance schemes based on primary producer status.

Further details are contained in Statement No. 4.

The change, which will apply for 1978-79 and subsequent income years, is estimated to raise $lmin 1978-79 and $27m in a full year.

page 21

BUDGET OVERVIEW

Total outlays in 1978-79 are estimated to increase by 7.7 per cent to $28,870m.

Total receipts, after the measures I have outlined, are estimated to increase by 11.0 per cent to $26,057m

The overall deficit is therefore estimated at $2,8 1 3m, a reduction of $52 1 m on 1 977-78.

After allowance for overseas transactions, the domestic deficit is estimated at $ 1,669m in 1 978-79, some $782m less than in 1 977-78.

page 22

THE BUDGET, MONETARY POLICY AND WAGES POLICY

In 1977-78 the broadly denned volume of money (M3) expanded by 8 per cent over the course of the year, which was at the lower end of the range projected in last year’s Budget Speech.

The firm control of the monetary aggregates which the Government has put in place since early in 1976 has contributed much to the subsequent wind-down in inflation.

The 1978-79 Budget will again contribute to an appropriate monetary environment.

With continuing success against inflation, the Government looks forward to further sustainable reductions in interest rates.

The Government has been careful to ensure that its policy of monetary restraint does not unduly restrict the supply of finance to certain key sectors such as housing.

The policy of monetary restraint will of course strengthen the demand for housing in the longer term through reduced inflation and lower interest rates.

However, the Government has acted decisively with a view to the short term as well.

The banks and building societies are being reminded of the Government’s desire that they lend to homeseekers to the maximum extent.

In addition, to facilitate the provision of housing finance, the regulations relating to savings banks subject to the Banking Act are under urgent review.

To expand savings banks’ capacity to lend for housing in 1978-79, the proportion of savings bank deposits required to be held in public securities and liquid assets will be reduced from 45 to 40 per cent.

As a longer term measure, the present method of controlling the investment of savings banks’ funds is being reviewed with the intention of giving them more flexibility in determining the composition of their assets.

Lending levels will, of course, remain subject to lenders ‘ own commercial judgments.

These actions should make it easier for homeseekers to obtain finance.

These decisions have been taken within the framework of an overall monetary policy which remains directed at providing adequate funds for sustainable recovery in private sector activity and employment, while continuing to bear down steadily on inflation and inflationary expectations.

In this regard- and despite the acknowledged uncertainties in such projections- I now state that this Budget is consistent with an outlook for financial conditions indicated by growth in the broadly defined volume of money (M3) in the range of 6 to 8 per cent over the course of 1978-79.

Within this monetary projection, the outlook for employment will be affected by the outcome of the wage determination process both within the arbitral tribunals and outside them.

But before I develop this point in more detail, let me say something about the link between jobs and money wage gains.

The sharp increase in labour costs, relative both to the price of output and the costs of other factors of production, which occurred in 1973 and 1 974- and which has not so far been wound back- has encouraged firms to shed as much labour as they can.

They have been replacing workers with machines; replacing full-time staff with part-time; replacing wage and salary earners with selfemployed contract labour; in short, making do with less labour all round.

That is the major reason why employment, especially of wage and salary earners, has hardly been growing at all even while output has been expanding.

This has been to the particular detriment of young people and the unskilled.

For five years now, businesses have been coping as best they can with those excessive labour costs.

Since the wages explosion of 1973 and 1974, there has, it is true, been some closing of the gap between real wages and productivity.

But the partial closure of that gap has been a result of productivity increases, not of real wage reductions.

In accepting this protracted means of closing the gap, we are, as a nation, condemning ourselves to a second-best solution.

A considerably more rapid recovery would be possible- if a greater measure of wage restraint could be obtained.

The Government has been fostering a moderate uplift in economic activity.

However, excessive wages have pushed unemployment to levels that could otherwise have been avoided.

At wage hearing after wage hearing, the Government has sought to demonstrate to the Conciliation and Arbitration Commission the inescapable inter-dependence of economic recovery and wage restraint.

It is regrettable that the Commission has not paid greater heed to the views the Government has put to it at these hearings.

Its failure to do so has, in our view, been costly to the Australian community both in terms of inflation and unemployment.

We cannot, as a Government, regard this situation as satisfactory.

Within the monetary framework which I outlined earlier, there is a limit to wage increases that can be awarded without throwing even more people out of work.

The Government has limited flexibility in monetary policy, which cannot be assumed to passively adjust so as to accommodate money wage decisions inconsistent with the Government’s objective of continuing to bear down on inflation and encourage economic recovery and sustained growth in employment.

Employers also should not assume that the finance to accommodate excessive wage rises will be readily available.

If wages increase faster than responsible growth in the monetary aggregates permits, there will be inadequate scope for growth in real activity.

If this occurs the result will be lower economic activity and therefore higher unemployment than would otherwise be attainable.

Consistent also with this position, the Government will not allow excessive increases in money wages to undermine its own Budget.

The Commonwealth will, as a major employer, act like any other employer.

If wages rise faster than we have budgeted for, we will respond by effecting offsetting economies through a further critical examination of Budget expenditures. This critical examination will include the number of staff employed.

In so doing, we will be seeking to bring the conduct of our own affairs more into line with conditions prevailing in the private sector.

That will also demonstrate, in the most practical way, the vital need to ensure sensible outcomes in the area of wage determination that will permit employers both to preserve present jobs and to make more new jobs available.

The Government will be advising the Commission along these lines at the next National Wage Case.

page 23

ECONOMIC OUTLOOK

As I have just indicated, the outlook for the economy depends heavily on the future course of award wages.

Unfortunately it is not generally recognised that, despite partial indexation, the actual level of real wages has hardly fallen at all in recent years.

Real household disposable incomes rose in both 1976-77 and 1977-78.

Notwithstanding the temporary increase in the standard rate of personal income tax, real household disposable incomes are again expected to rise in 1978-79.

The personal saving ratio is likely to continue to decline and private consumption expenditure can be expected to grow at a healthy pace.

Forward indicators suggest that the buoyant performance of private business investment in 1977-78 will be sustained in the coming year.

The Government draws considerable satisfaction from this evidence of increasing community confidence in its policies.

While policy has, of course, been looking to the private sector as the source of sustainable growth, total public sector expenditure is again expected to show a real increase in 1978-79, although smaller than last year.

The growth in production is also expected to be strengthened by a turn-around in the stock cycle as stocks begin to rise again during the coming year.

Externally, our export growth will be constrained by the continuing moderate growth of the world economy in 1978-79.

However, from the point of view of the current account balance and domestic incomes, the sluggishness in export volumes is likely to be offset by a significant improvement in our terms of trade.

The expected build up in stocks domestically will no doubt be mirrored in stronger growth in imports.

On balance, therefore, the external deficit on current account seems likely to continue running at about the rate recorded in the second half of 1977- 78, producing some increase for the year as a whole.

Offsetting that, the improvement in the investment climate generally in this country seems likely to lead to a gradual strengthening of the private capital account.

Meanwhile, the Government remains committed to a program of official borrowing overseas to supplement the temporarily depleted levels of private capital inflow and, in the process, to maintain reserves.

Overall, gross non-farm product is projected to grow by around 4 per cent in real terms in

1978- 79.

With a return to more normal seasonal conditions there should be a significant recovery in farm product and farm incomes this year.

That would mean stronger growth in total GDP than in the non-farm component.

However, while this growth should be sufficient to ensure an increase in employment, unemployment may well increase somewhat during the year as the labour force continues to grow, unless a better outcome can be achieved on the wages front.

So far as prices are concerned, the indirect tax increases and the move to import parity for domestic crude oil may temporarily slow the deceleration in the broadly-based price deflators.

In terms of the Consumer Price Index, those increases seem likely to be more than offset by the effects of the changes to the financing of health services.

With even reasonably sensible outcomes for wage determination, inflation is expected to be running at an annual rate down towards 5 per cent by mid- 1979.

page 24

CONCLUSION

At no time since its election has this Government pretended that there were quick, easy solutions to Australia ‘s economic problems.

It has been necessary in this Budget to take difficult decisions to achieve our objectives.

To have done otherwise would have put at risk all that we have achieved to date.

There was no way that this Government would sacrifice economic temperance for shortterm political praise.

In framing all our decisions, we have been guided by a desire to fairly share burdens throughout the Australian community.

This Budget stands for the long term economic stability of Australia.

It is a Budget of reality.

It is a Budget of economic responsibility.

Debate (on motion by Senator Wriedt) adjourned.

page 24

VISIT OF FORMER SENATOR

The PRESIDENT:

– I inform honourable senators that we have with us in my Gallery a former member of this place- a highly respected one- in the person of Mr Lawrie Wilkinson. I would tender to him our welcome back to this chamber and express our pleasure at his being with us.

page 24

QUESTION

REPORT OF THE ROYAL COMMISSION OF INQUIRY INTO THE ELECTORAL REDISTRIBUTION OF QUEENSLAND IN 1977

Senator CARRICK:
New South WalesMinister for Education · LP

– I lay on the table the report of the Royal Commission of Inquiry into Matters in Relation to Electoral Redistribution, Queensland 1977, dated August 1978, and related papers. I seek leave to have the speech made in the House of Representatives this day by the Prime Minister (Mr Malcolm Fraser) incorporated in Hansard.

Leave granted.

The speech read as follows-

It may be helpful to honourable members if I briefly set out the key events leading up to the setting up of this Royal Commission. Allegations were made by the present member for Fadden (Mr Donald Cameron) on 21 December 1977 that one of his parliamentary colleagues had had an undue influence on the redistribution in that State. It soon became apparent that the person to whom the honourable member was referring was the Minister for Finance (Mr Eric Robinson).

I discussed this matter on 1 7 January with the Minister for Finance and the Minister for Administrative Services (Senator Withers) and it was decided that a meeting should be held in my office on the following day attended by myself, those two Ministers, and the honourable member for Fadden, the honourable member for Lilley (Mr Kevin Cairns) and the honourable member for Bowman (Mr Jull). As a result of the meeting on 18 January, and with the agreement of the Minister for Administrative Services and the Attorney-General (Senator Durack), I requested the Attorney-General and the Solicitor-General to examine the complaints which had been put forward.

Mr Cameron had a lengthy document which he showed me briefly about his allegations. He did not leave a copy with me but agreed to discuss it with the Solicitor-General. I rang Senator Durack to tell him what happened at the meeting, and at my request Senator Withers as the responsible Minister reported further to Senator Durack on the matter. The Law Officers’ advice of 9 February and 15 February were referred to by Senator Withers in the Senate on 28 February. In summary, that advice was that the matters complained of neither required nor warranted Government action.

The issue was raised again on 7 April. On that day the Law Officers’ advice was tabled after Mr Cameron had again adverted to his allegations. Mr Cameron referred to some statutory declarations, which were additional to the material the Attorney-General and the Solicitor-General had previously considered. There were several discussions between Ministers on 10 April at which both Senators Withers and Durack were present, to decide what action should be taken and it was again decided that this additional material should be submitted to the Law Officers for further advice. On the same day, the original memoranda of advice of the Attorney-General and the Solicitor-General were incorporated in Hansard.

On or about 11 April the Chief Electoral Officer, Mr Pearson, read the memoranda for the first time in Hansard. After discussing the matter with Senator Withers, he spoke to the SolicitorGeneral. Mr Pearson informed the SolicitorGeneral that in mid-September Senator Withers had discussed with him the naming of Mr Robinson’s electorate and that at Senator Withers’ suggestion, Mr Pearson had spoken to the Chairman of the Queensland Distribution Commissioners, Mr Coleman, on this matter. The Attorney-General was informed of this orally by the Solicitor-General on 14 April. Senator Durack approached Senator Withers who confirmed what Mr Pearson had said. Senator Durack then told me on 16 April of the telephone conversations between Senator Withers and Mr Pearson, and between Mr Pearson and Mr Coleman.

Now let me make one point quite clear. This was the first occasion on which I became aware of Senator Withers’ intervention. While not reflecting in the slightest on the evidence of the Minister for Finance, I have absolutely no recollection of the matter being raised in any previous discussions. It is also fair to say that in his evidence to the Royal Commission, Senator Withers has no clear recollection of raising the matter with me on 17 January. Nor has there been any suggestion that the matter was raised in the very lengthy discussions Senator Withers and I had with Mr Cameron. If I had had any relevant information relating to the inquiries of the Law Officers, either on 18 January or 10 April, I would have referred it to them. I state that categorically and absolutely. Both the AttorneyGeneral and I were concerned that this information which was clearly relevant to the allegations against Mr Robinson was not made available to the Law Officers in January and as a result their original advice was deficient. There were further discussions between Ministers on 1 7 April. On the following day I left for Japan. From there I requested that a report of the Attorney-General and Solicitor-General be ready for discussion upon my return. On 21 April, Senator Withers wrote to Senator Durack confirming details of the telephone conversations and his reason for making them. Mr Pearson also wrote to the Attorney-General supporting Senator Withers’ letter. Both these letters have been tabled.

On 23 April, a meeting was held at the Lodge of a number of Ministers to consider the report from the Law Officers which I had sought to expedite while in Japan. This report resulted from the Government’s reference to the Law Officers of additional material on 10 April. The report was incorporated in the letter dated 23 April which I have tabled and advised that further investigation was required and that a judicial inquiry would be preferable. The Ministers agreed that a Royal Commission should be appointed forthwith, so that the allegations could be examined fully and publicly. The Ministers discussed proposed terms of reference and the precise form was settled the following day and is set out in the Letters Patent of 24 April. The letters patent referred specifically to the change of name of the electorate and were quite wide enough to allow all the relevant evidence to be heard.

It was not unnatural that as the only allegations which had been made concerned the Minister for Finance and the Queensland Distribution Commissioners, then, as to the Commission’s findings, the terms of reference referred to those persons. For these were the matters in Ministers’ minds. These were the matters subject to examination. The telephone conversations of Senator Withers and Mr Pearson were raised at the meeting.

The Attorney-General’s advice on 23 April was that in his view these telephone conversations were not contrary to the Electoral Act- a view subsequently confirmed by the Royal Commission- but constituted evidence relevant to the charges against Mr Robinson and should come forward at the hearings of the Royal Commission. Ministers agreed with this advice.

As soon as the Royal .Commission had been appointed, the Attorney-General arranged for papers to be made available to Counsel Assisting the Royal Commission including details of the telephone conversations between Senator Withers and Mr Pearson, and between Mr Pearson and the Chairman of the Distribution Commissioners. In this way, the AttorneyGeneral made absolutely sure that the details of the telephone conversations would be disclosed in public evidence before the Commission. All the Government’s actions, it can be seen, were prompted by a desire to have all the facts brought out at the Royal Commission. Allegations were then made, supported by statutory declarations relating to alleged statements by Mr Robinson on the Government’s decision on uranium mining. The Government decided that the terms of reference should be widened to cover the uranium allegations and revised terms of reference were drafted by the law officers. New letters patent incorporating the revised terms of reference were issued on 10 May.

The following day and before any evidence was heard by the Commission, the AttorneyGeneral wrote to the Royal Commissioner indicating that the Government was willing to extend his terms of reference further if any matters came to his notice indicating that in the course of the redistribution any person had acted improperly or in breach of a Commonwealth law. On the same day, Senator Durack wrote to the honourable member for Fadden urging him to place before the counsel assisting the Royal Commissioner any further material he had which supported his allegations. I have tabled these two letters from the Attorney-General, together with His Honour’s reply on 12 May. On 15 May, Mr Pearson, and on 22 May, Senator Withers, gave evidence before the Royal Commission about the telephone conversations. On 26 May, Senator Withers answered questions in the Senate directed to whether he had misled the Senate in statements he made on 4 November 1977 concerning the naming of the Mcpherson electorate.

On 28 May, a meeting of a group of Ministers and officials from my Department and the Attorney-General’s Department met to consider the situation.

In accordance with the Government’s policy throughout this matter- as reflected in Senator Durack ‘s letter to Mr Justice McGregor of 1 1 May- to have all allegations of illegality or impropriety in the course of the McPherson redistribution fully heard and determined, Cabinet decided on 30 May to have the terms of reference widened again so that the Royal Commission could make a finding on whether any breach of the law of the Commonwealth or any impropriety had occurred on the part of any person in the course of the McPherson redistribution. I now turn to the findings made by the Royal Commission. Mr Justice McGregor entirely exonerated the Hon. Eric Robinson of allegations concerning the Queensland redistribution.

His Honour said that:

No breach of a law of the Commonwealth or impropriety occurred in the course of the redistribution in 1977 of the State of Queensland into Electoral Divisions for the election of Members of the House of Representatives

Including the change of the name of a proposed division from ‘Gold Coast ‘ to ‘McPherson’ by reason of

anything said or action taken by or on behalf of the Honourable Eric Robinson:

any action taken by the Distribution Commissioners or any of them as a result of anything said or action taken by or on behalf of the Honourable Eric Robinson: or

any communication by the Distribution Commissioners to the Honourable Eric Robinson.

On the issue of allegations about statements made by Mr Robinson on uranium, the Commissioner reported:

On 26 July 1 977 at Beaudesert in the State of Queensland, the Honourable Eric Robinson made a statement concerning the likely decisions of the Commonwealth Government in relation to the mining of uranium in Australia to the following effect-

The Government will be making a decision about the mining and export of uranium early in the Budget session which commences in about three weeks ‘ time

If the Government is satisfied that all interests requiring protection can be protected, I would expect the Government to authorise mining and export of uranium.

This was a statement to which no exception can be taken. Accordingly, I wrote last week to Mr Robinson asking him to resume his portfolio as Minister for Finance.

The Royal Commissions similarly exonerated completely the Chief Electoral Officer and the three Queensland Distribution Commissioners.

The Royal Commissioner thus concluded that the drawing of the boundaries of the McPherson electorate was carried out without any illegality or impropriety on the pan of any person.

With respect to Senator Withers, the Royal Commissioner found that the Minister had done nothing illegal, but that in respect of his involvement in the naming of the electorate, in the words of the report:

The action of Senator the Right Honourable R. G. Withers constitutes impropriety within the meaning of the Letters Patent dated 30 May 1978.

Senator Withers used his position to further a political purpose by an approach (not open to members of the public) to the Distribution Commissioners’.

That purpose was not made known to them and it was foreign to the matters which were proper for their consideration ‘.

Had the Commissioners been made aware of what was behind the approach, they would not have entertained it ‘.

However, believing they were being invited merely to correct an error on their part, they went along with the suggestion which was put to them ‘.

Whilst Senator Withers did not seek to influence, or influence the Commissioners in any way about how they should perform their duties of distribution of the electoral divisions in Queensland he did seek to influence them, and he did in fact influence them, through an intermediary, as to something which they proposed to say in their report, that is to say, the names which they tentatively attached to two electoral divisions’.

What he did, having regard to the purpose with which he did it, in my judgment constitutes impropriety’.

Mr Justice McGregor thus found that an impropriety had been committed not because of Senator Withers’ act of communicating with Mr Pearson about the name of the electorate but because of the purpose with which he did it. The Commissioner exonerated the Chief Electoral Officer who was a party to the same act but who did not have, in the judgment of the Commissioner and was not aware of in the view of the Commissioner, the motive which the Commissioner found to be the real reason for Senator Withers’ phone calls.

Senior Ministers considered carefully what should be done in the light of this finding and of the Judge’s definitions of impropriety. We had no doubt that our first and foremost responsibility was the maintenance of the high standards of propriety set and maintained by this Government. We were of the view that we had no option but to accept Mr Justice McGregor’s Report and accepting it had inevitable consequences in respect of the finding of impropriety. In coming to decisions on these particular matters, it was necessary to have in mind the answers given by Senator Withers in the Senate on 4 November and 26 May in the light of the evidence which emerged at the Royal Commission and the findings of the Commission. As I said in my statement when the report was released on 8 August:

The community rightly demands a high standard from the Ministers of the Government.

The judgments on Ministers are more exacting and sometimes more harsh than the judgments which might be passed on those outside the sphere of public life.

If these high standards were not upheld, the people ‘s confidence in Government- a confidence which is fundamental to Australian democracy- would be undermined.

The Government has an obligation to uphold them even though the cost can be and is in this instance, a high one.

Thus on 7 August I recommended to His Excellency, the Governor-General, that he should determine Senator Withers’ appointment as Minister for Administrative Services.

Throughout this whole matter, the Government has consistently acted to have allegations examined by the Law Officers, and then, in their recommendations, by the Royal Commission. Twice, when new allegations and issues were raised, the Royal Commission’s terms of reference were widened. The totality of the Government’s actions were designed to elicit all the facts on the allegations which had been made. I remind the House that the terms of reference were sufficiently wide to encompass findings in respect of any other Minister, public servant or person. The decisions we made were difficult, and not without pain. Senator Withers has a fine record as a Minister, and as Leader of the Government in the Senate. It is with a considerable sadness that matters have concluded as they have. Senator Withers’ energy, ability and experience will be greatly missed by the Government.

Motion ( by Senator Carrick) proposed:

That the Senate take note of the papers.

Debate (on motion by Senator Wriedt) adjourned.

page 27

HEALTH INSURANCE ARRANGEMENTS

Ministerial Statement

Senator GUILFOYLE:
Minister for Social Security · Victoria · LP

– by leave- I seek leave to incorporate in Hansard a statement relating to changes in health insurance arrangements being made in the other place by the Minister for Health (Mr Hunt).

Leave granted.

The statement read as follows-

In his Budget Speech, the Treasurer (Mr Howard) advised that changes will be made to the health insurance arrangements from 1 November this year. Before outlining the proposals in more detail, it would be appropriate if I commented briefly on the recent history leading to these changes.

Background to changes

The House will recall that the Government in 1976 made certain modifications to Medibank and renegotiated the hospital cost-sharing agreements with the States. Although Medibank provided universal health insurance cover, it did so in a way which was open-ended and costly. Health costs were escalating at an alarming rate, and when the Government took office it was apparent that modifications to the scheme were necessary in order to reduce this rapid acceleration.

As recently as May this year, I announced on behalf of the Government further modifications designed to reduce excessive use of medical services and to rationalise the use of hospital resources. The changes to Medibank which became effective on 1 October 1976 and the subsequent amendments have resulted in a significant decline in the rate of acceleration of health costs. This is confirmed by figures which were released earlier this year. The figures, announced in March, indicated that in relation to expenditure, including capital, on a financial year basis, the rise in health costs of 27. 1 per cent in 1975-76 had been slowed to 19.7 per cent in 1976-77. The figures also showed that the rate of increase in health expenditure as a percentage of gross domestic product has been slowed.

Further statistical information on these matters will be available in due course. Nevertheless, the rate of increase of health costs has continued to be unacceptably high. In addition, although the existing arrangements have been achieving their original purpose, they are none-the-less complex and involve the imposition of a high degree of compulsion on the individual. Because of these factors, the Government has continued its review of the health insurance system.

In October last year, I asked the Hospitals and Health Services Commission to review the financing of health services in Australia. The Commission’s report, ‘A Discussion Paper on Paying for Health Care’, was tabled in this House on 15 March this year. That report was one important component of the very comprehensive reconsideration of the health insurance system undertaken by the Government in recent months. Our review has pointed to an obvious fact: That to maintain a balance between the numbers of Health Insurance Levy payers and those privately insured- an essential element in the existing scheme’s strategy to contain costsclearly the Levy rate could not be held at its present level much longer.

A further complexity has emerged because of the different health cost structures in different States, and the consequent variation in private insurance rates, which suggest a need to examine the imposition of different Levy rates in different States. This, of course, could not be countenanced in a Federal levy. Accordingly, we reached the conclusion that, rather than make any adjustments to the Health Insurance Levy, it was more practical and desirable to introduce a new and better Medibank system by abandoning the Levy and introducing a new Commonwealth medical benefit and other changes.

Summary of Changes

Let me now summarise the major features of the changes:

As announced by the Treasurer, the Health Insurance Levy will be abolished.

The Commonwealth will pay a new universal medical benefit from consolidated revenue.

This new Commonwealth benefit, to cover 40 per cent of Schedule medical fees with a maximum patient contribution of $20 for any one service where the Schedule fee is charged, will be paid through private health insurance funds (including Medibank Private).

Medical insurance premiums should fall considerably for comparable levels of cover.

The present compulsion on every Australian to pay for one type of health insurance or another will be removed (although those people currently covered by Medibank Standard will need to consider whether they wish to insure for their present level of benefits).

Private health funds (including Medibank Private) will offer medical benefits in addition to the new Commonwealth benefit, and will continue to provide hospital benefits.

The funds will be given considerable freedom and flexibility to devise attractive benefit packages.

Accommodation in standard wards of public hospitals with treatment by doctors engaged by the hospital will continue to be available free of charge to those who are not privately insured for hospital care.

Bulk-billing of PHB pensioners and their dependants who are not privately insured for medical benefits will continue as at present.

As previously announced, the new concept of bulk-billing for socially disadvantaged patients will be introduced.

Subsidies for hospital-only insurance will be discontinued.

The subsidy of $16 per occupied bed day paid to private hospitals will remain.

Further Details of Changes

As honourable senators will have noticed, a number of the best features of existing and previous schemes are being brought together in the modifications. For example, Medibank introduced the concept of universal medical benefits and standard hospital coverage for all Australians, regardless of means. This principle is being retained. Those people who are not covered by hospital insurance will continue to be eligible for accommodation in standard wards of public hospitals, with treatment by doctors engaged by the hospital, at no cost, although in Queensland, of course, all citizens will continue to be eligible for free standard ward care irrespective of their insurance status.

The Commonwealth and States will continue to share the approved net operating costs of recognised hospitals. Bulk, or direct, billing will continue to be available for pensioners with Health Benefits Cards and their dependants, (except for those who are privately insured for medical benefits) and will be introduced for socially disadvantaged people as I recently announced.

The most important change, of course, is the abolition of the health insurance levy- a move which means that everyone in the community will be entitled to receive a basic level of protection against the costs of medical and hospital services without having to pay any direct contribution, either by way of Levy to the Government or by premium payments to private insurance funds. The health funds including Medibank Private, will continue to play an important role in the provision of insurance cover but people will no longer be liable to pay the Health Insurance Levy if they do not privately insure.

Medical Benefits

As I stated earlier, the new universal Commonwealth medical benefits will be payable through the registered funds. This arrangement will apply both to those who elect to take Commonwealth benefits only and to those who take private medical insurance in addition. The latter group will receive their Commonwealth benefit as an integral part of any refund claimed for a medical service. No one, of course, will be obliged to take out medical insurance with a private fund if he or she is satisfied to receive the Commonwealth benefit only.

It should be emphasised that those people who are now receiving Standard Medibank benefits at 75 per cent of the Schedule fee for medical services, with a maximum patient payment of $10, and who wish to retain the same benefit level, will need to insure privately to do so. In fact, as from 1 November it will be a condition of registration of the private funds that they offer a basic medical benefits table. This table, together with the Commonwealth benefit, will cover 75 per cent of the Schedule fee, with a maximum patient payment of $ 10 for any one service where the Schedule fee is charged. In other words, people insured for basic medical fund benefits will receive combined Commonwealth and fund benefits at the rate of 75 per cent of the Schedule fees with a maximum patient contribution of $10. That is, the fund will increase the level of benefit from the universal Commonwealth benefit of 40 per cent with a $20 gap, to 75 per cent with a $10 gap.

In addition, funds will be free to offer a variety of other medical benefits packages up to a maximum of the Schedule fee level, and other ancillary benefits. Under the scheme, therefore, the Commonwealth will meet all costs over and above $20 for any medical service, provided the doctor charges the Schedule fee. It must be emphasised that those people currently paying the health insurance levy will be eligible to receive only 40 per cent of the Schdeule medical fee with a maximum payment by the patient of $20 for any one service where the Schedule fee is charged, unless they take the necessary steps to insure for additional benefits. Those who wish to retain their present 75 per cent/$10 gap benefit will need to insure by 1 November.

As I said earlier, no one will be obliged to privately insure. Undoubtedly there will be many who will wish to carry a higher risk themselves and will decide to accept a 40 per cent benefit as payment in full, especially in the light of the knowledge that they will have to pay no more than $20 for any one medical service where the schedule fee is charged. I will be meeting with representatives of the health funds within the next few days to discuss the most practical and simple method for people to obtain their universal Commonwealth medical benefits. I will also be advising them that they will be required to submit a proposal to my Department by 29 September concerning their basic medical benefits table. Such proposals will be considered by the

Registration Committee with a view to registration of the new tables by 1 November. Funds which do not offer this new basic medical benefits table will be unable to pay Commonwealth medical benefits.

For the many people who are already enrolled with a fund for hospital and medical coversome 57 per cent of the population- the change will mean little apart from the fact that they should also have an opportunity to review the level of cover they require. They will also have the opportunity to make significant savings in the process. In turn, the funds will be in a position to offer a variety of innovative insurance tables, including ‘deductibles’ in some form. Apart from the basic table, the funds will be able to devise competitive and innovative benefit schemes, subject to guidelines.

Hospital Insurance

Turning to the hospital side, insurance and benefit arrangements will remain largely unchanged. People who are not privately insured will continue to be eligible for standard accommodation and treatment in public hospitals at no charge to them. Those who are covered by private insurance will be expected to contribute towards the cost of any hospitalisation in public hospitals, except in Queensland as I have previously stated. The Commonwealth/State hospital cost-sharing arrangements will continue. The subsidy of $ 1 6 per occupied bed day paid to private hospitals will remain. The Commonwealth will continue to contribute the sum of $50m to the reinsurance pool.

Hospital funds will continue to offer the basic standard table covering hospital accommodation at $40 a day, and will also be obliged to continue to cover their contributors against nursing home charges in all tables. Apart from this, they will be able to devise competitive benefits packages, and to introduce deductibles if they choose, subject to guidelines. The Government and the industry are already in the process of developing acceptable guidelines for deductible schemes.

Hospital-only Insurance

With the removal of the health insurance levy, the present system of subsidised hospital-only insurance will be discontinued. From 1 November, former levy payers and those pensioners and others exempt from the levy who wish to continue coverage for shared ward accommodation with doctor of choice in hospital will need to take basic hospital insurance. However, the additional premium payable is not large. On present rates it should not exceed an extra 75 cents a week for family cover in New South Wales, South Australia and Western Australia, 35 cents in Victoria, 30 cents in Queensland and 25 cents in Tasmania.

Bulk-Billing

While there has been considerable debate over recent years about the merits and demerits of bulk billing, the system has administrative advantages in meeting the needs of pensioners and socially disadvantaged people. The arrangements recently announced for assisting the socially disadvantaged through the use of bulk billing will be implemented. Doctors who do so will receive from the Government 75 per cent of the Schedule fee as payment in full for the service rendered, provided the patient is not privately insured, and will not be permitted to recover a cash payment from such patients. Doctors will continue to be able to bulk bill the Commonwealth to the extent of 85 per cent of the Schedule fee for pensioners with pensioner health benefit entitlements, and their dependants, with a $5 gap.

Commonwealth-State Hospital Cost-Sharing Arrangements

As I said earlier, the Commonwealth-State hospital cost-sharing arrangements will continue. However, as previously mentioned, my announcement in May of this year emphasised the need to rationalise the use of hospital resources to improve efficiency and productivity, and to reconstruct the hospital charging pattern. My Government recognises that an important key to the containment of health costs rests in the hospital area. It is therefore vigorously pursuing the rationalisation initiatives with the aim of producing real results. These matters have been under discussion with the States during recent weeks.

The question of the level of hospital charges is directly related to these considerations, especially the varying levels of hospital operating costs in and between the various States. Therefore my Government is not in a position to finalise its views on the levels of hospital charges until these negotiations and discussions are further advanced.

Effect on Private Fund Contribution Rates

I do not wish to forecast the effect the November changes might have on the current contribution rates for private insurance. However, it should be stressed that the new basic medical benefits table, which all funds will be obliged to offer, will meet from fund resources only 35 per cent of the schedule fee and no more than $ 10 for any medical service, compared with the present 75 per cent $10 ‘gap’ met entirely by the funds. The Commonwealth, of course, will meet the other 40 per cent. Indeed, as I said earlier, the Commonwealth will be meeting all costs above $20 for any medical service, provided the doctor charges the schedule fee.

The Registration Committee will be taking into account these new subsidised medical benefits arrangements in relation to the basic table before considering the new premiums for such insurance as from 1 November. I will await with interest the packages and contribution rates the funds will be offering for hospital insurance in due course, once they have had a chance to assess the freedom and flexibility the new scheme offers.

Future role of the Health Insurance Commission

With the ending of the present Medibank Standard benefits system, the Health Insurance Commission’s activities after 1 November will be confined to the operation of Medibank Private. The Government has decided that the Health Department will administer the new universal Commonwealth medical benefit. It would obviously be inappropriate for an organisation operating a private fund, that is, the Health Insurance Commission, to pay to other funds Commonwealth benefits for insured and uninsured persons; to be in a position where it had related information on the activities of the other funds; or to exercise supervisory or inspection functions. Similarly, in the new circumstances, bulk billing activities which represent the payment of medical benefits directly to doctors by the Commonwealth for pensioners and the disadvantaged, Commonwealth payments under the hospital cost-sharing agreements, per diem payments to private hospitals, and health program grant payments are more appropriately placed within the Health Department.

At this stage I cannot be precise about the number of staff who will be required to handle Medibank Private or to deal with the additional functions within the Health Department. It does seem, however, that some of the present employees of the Health Insurance Commission will be surplus to requirements. We will make every effort to re-deploy any surplus staff to the Public Service, to other Commonwealth authorities, to the private health funds or elsewhere. I will be raising employment possibilities with the private funds, and have asked that the Public Service Board and the Commonwealth Employment Service give particular attention to the placement needs of Commission staff. Meetings will be arranged by the Government as soon as possible with relevant staff organisations to discuss these important matters.

Summary of effects on various groups

Let me now summarise briefly the effects of the 1 November changes on various groups in the community:

For the 57 per cent of the population who are currently insured with private health funds for both medical and hospital benefits, there will be little change, although their medical insurance premiums should be lower from 1 November. Individuals can, of course, elect to take the new Commonwealth medical benefit and standard hospital care if they choose.

For pensioners with pensioner health benefit cards, and their dependants, there will be no change in respect of present levels of medical and hospital coverage.

For pensioners and others who currently have hospital-only insurance, they will be required to pay a little extra if they wish to continue coverage for shared ward accommodation with doctor of choice in hospital.

For low-income earners and others who are socially disadvantaged, doctors will be able to bulk-bill their medical accounts, as recently announced.

For health insurance levy payers, a clear-cut choice will need to be made- whether to accept the new universal Commonwealth benefits, or whether to take out private insurance in order to retain their existing level of medical benefits. It is a choice they will need to make by 1 November.

Summary of advantages

In summary, the revised Medibank arrangements will provide a better and simpler system of universal health insurance for all Australians. Under the existing arrangements, people have faced complex decisions- whether to pay the health insurance levy only, whether to add hospital-only’ insurance to the Levy, or whether to take out full private insurance. These complexities would have been increased by any future adjustments to the Levy rate in line with rises in health insurance premiums.

The new scheme removes these difficulties. In future an individual will have to decide only one major question- do I wish to take out private health insurance over and above my universal Commonwealth medical benefit and standard hospital entitlement, and if so how much do I want? The whole income tax collection system will be simplified from 1 November. Paymasters will no longer have to concern themselves with levy collections. Self-employed people and others with unpredictable incomes will not have to cope with the uncertainties of deciding which options are most suitable to them.

In spite of these simplifications, it is recognised that there are people who find any change unsettling, and who may feel immediate uncertainty about what they will be required to do. May I assure those people that the Government will be undertaking an extensive information program between now and 1 November to ensure that everyone in the community will be fully aware of the choice to be made and the steps necessary to implement that choice. In conclusion, the very real advantages of the modified arrangements are:

Everyone will continue to be automatically entitled to coverage for health care at a uniform level.

The present element of compulsion by which people have to pay for one form of health insurance or another will disappear, and a substantial monetary saving should be available for most people.

Those who wish to insure for a higher level of benefits may do so on a completely voluntary basis.

Pensioners and the socially disadvantaged will be covered for medical benefits and standard ward hospital care.

The complexities of income tax returns in relation to the health insurance levy will disappear.

Acquisition of statistical data on medical services will be simplified because of the payment of a uniform Commonwealth benefit for every medical service.

The principle of greater patient contribution by way of lower levels of universal medical benefits, introduced in the May modifications to encourage users and providers to use services responsibly, is carried forward in the new arrangements.

Although considerable subsidy is being provided to people for medical benefits, the

Government is introducing a form of voluntary deductible system by leaving it to contributors to decide whether they will insure for a larger or lesser percentage of benefits.

There have been many representations from people wanting the opportunity to carry a higher proportion of risk in return for lower health insurance premiums. The November changes to Medibank will provide that opportunity.

The modifications will, in effect, allow people to enter into their own voluntary deductible systems, knowing that they are largely covered for high-cost, catastrophic illness. Put in another way, the system will enable people to accept higher risks in return for lower insurance premiums. This will provide an incentive to people to use medical services responsibly.

While special arrangements have been made for pensioners and the socially disadvantaged, the Government will monitor the scheme carefully to ensure that it serves their needs satisfactorily. The Government is confident that these changes will not only ease some of the financial strain from individuals in paying for health care, but will also simplify the health insurance system while at the same time maintaining a constraining effect on health costs. I commend the changes to honourable members.

Motion (by Senator Guilfoyle) proposed:

That the Senate take note of the statement.

Senator GEORGES:
Queensland

– Before moving that the debate be adjourned I would like to speak briefly on this matter. Important statements are being brought down. In view of the long time taken to read the Budget Speech perhaps we should accept the incorporation of these statements, but we do so with reluctance.

Senator Guilfoyle:

– I shall read the statement if you wish.

Senator GEORGES:

-No, I am not refusing leave. I move:

Question resolved in the affirmative.

Motion (by Senator Guilfoyle) agreed to:

That the resumption of the debate be made an order of the day for the next day of sitting.

Senate adjourned at 9.15 p.m.

page 33

ANSWERS TO QUESTIONS

The following answers to questions were circulated:

Ashmore and Cartier Islands: Oil Exploration (Question No. 13)

Senator Mulvihill:

asked the Minister representing the Minister for Environment, Housing and Community Development, upon notice, on 22 February 1 978:

  1. 1 ) Does the Minister exercise any control over the resumed oil drilling operations in Northern Territory waters of Cartier Island and Ashmore Reef.
  2. 2 ) What legislation ensures that Arco Aust. Ltd is responsible for all environmental damage liabilities which might be caused by oil pollution.
  3. What action has been taken to ensure no damage is caused to Cartier Island.
Senator Carrick:
LP

– The Minister for Environment, Housing and Community Development has provided the following answer to the honourable senator’s question:

  1. The Minister for the Northern Territory administers the Petroleum (Submerged Lands) (Ashmore and Cartier Islands) Act and the Petroleum (Submerged Lands) Act, 1 967 insofar as they relate to matters concerning the areas adjacent to the Northern Territory and the Territory of Ashmore and Cartier Islands. The Minister for Environment, Housing and Community Development administers the Environment Protection (Impact of Proposals) Act 1 974.
  2. The Petroleum (Submerged Lands) Act 1967.
  3. In general, environment protection during offshore petroleum drilling operations is provided by the detailed procedures incorporated in Directions issued by the relevant Designated Authority pursuant to the Petroleum (Submerged Lands) legislation. Inter alia, these Directions provide for the inspection and supervision of drilling operations. The Directions also require prior approval of the contingency plans which would apply in the unlikely event of an oil spill. In relation to the East Swan No. 1 well a contingency plan was lodged by the company and cleared before approval was given for the drilling to commence.

Television (Question No. 35)

Senator Colston:
QUEENSLAND

asked the Minister represent ing the Minister for Post and Telecommunications, upon notice, on 21 February 1978:

Is a formula, based on population and total projected cost, used to determine whether television broadcasting facilities are provided in remote areas of Australia; if so, what is the formula; if not, what method is used.

Senator Carrick:
LP

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

It would be very difficult to apply a rigid formula in determining the provision of television services in remote areas of Australia. There are many factors which must be taken into consideration such as population, total projected cost, location in relation to existing television stations, distance from

Telecom microwave links, availability of suitable transmitting sites, socio-economic needs and estimated population growth of a community, and future technological developments in the telecommunications field. All are taken into consideration in planning the development of broadcasting and television services in Australia.

Television (Question No. 36)

Senator Colston:

asked the Minister representing the Minister for Post and Telecommunications, upon notice, on 2 1 February 1978:

Have investigations been made into the provision of television facilities to service the area around The Monument and Dajarra in North West Queensland; if so, what are the results of the investigations; if not, will the Minister ask that investigations be made and advise on the outcome.

Senator Carrick:
LP

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

A three-year planning and construction program to extend the national broadcasting and television service is currently being formulated by my Department. The number of areas to be incorporated in the program is dependent upon resource availability, both in terms of funds and personnel.

The area around The Monument and Dajarra in North West Queensland is recognised as one of those areas which are still inadequately served or are without a service at all.

I am hopeful that an approved development program will be available at an early date. However, at this stage I am unable to give any assurance that the Monument and Dajarra will be incorporated in the program.

Australian companies manufacturing overseas (Question No. 92)

Senator Wriedt:

asked the Minister representing the Minister for Industry and Commerce, upon notice, on 28 February 1978:

  1. 1 ) Which Australian companies have established offshore manufacturing ventures.
  2. In which industry is each company engaged and to what extent.
  3. What companies applied for a special import quota prior to the Government’s announcement of 21 January 1 977 that no special quotas would be granted.
  4. Does the Government monitor the amount of funds flowing out of Australia for the purpose of establishing offshore ventures; if so, what is the nature of the information received.
  5. Does the Government or the Reserve Bank of Australia make any check to establish if the funds exported are used for the purposes requested.
  6. What action can be taken in the event of the funds being used for purposes other than the purposes requested.
Senator Durack:
Attorney-General · WESTERN AUSTRALIA · LP

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

  1. 1 ) and (2 ) From time to time there are announcements in the media about the plans and operations of Australian firms which have established off-shore manufacturing ventures. The completeness of this coverage and the extent to which announced plans are actually implemented are open to question. However it is clear that several factors including inflation and escalating wage rates have increased the relative attractiveness of off-shore ventures in recent years.
  2. Information as to the identity of the companies which applied for a special import quota is of a commercial in confidence nature. Disclosure would be a breach of such confidence.

The Treasurer has provided the following answers to parts (4), (5) and (6) of the honourable senator’s question:

  1. Yes. Applicants wishing to establish off-shore manufacturing ventures require exchange control approval from the Reserve Bank. Information obtained by the Bank on direct investment overseas includes country of investment, nature of overseas enterprise, and form, purpose and amount of investment. However, the Reserve Bank has not publicly released information about individual exchange control applications because it would be regarded as a serious breach of confidentiality.

The Bureau of Statistics publishes data on private overseas direct investment. I refer you to the Bureau’s publication series on Overseas Investment, Catalogue number 5,304, tables 9 and 10.

  1. 5 ) It is standard procedure of the Reserve Bank to require production of any documentary evidence to confirm the purpose for which any substantial remittance out of Australia is approved.

The Reserve Bank takes reasonable steps to ensure that the foreign currency is used for the purpose for which it is made available.

  1. The Banking (Foreign Exchange) Regulations provide that foreign currency shall not be used for purposes other than that for which it was made available by the Reserve Bank. Prosecutions for an offence against the Banking (Foreign Exchange) Regulations by way of indictment require the consent of the Treasurer. Penalties of up to $100,000 or five years imprisonment may be imposed for contraventions of the Regulations if the offence is prosecuted upon indictment.

Unemployment statistics: Review (Question No. 131)

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

asked the Minister representing the Minister for Employment and Industrial Relations, upon notice, on 28 February 1978:

  1. 1 ) What are the scope and purpose of the proposed review of the Commonwealth Employment Service unemployment statistics.
  2. How many staff will be conducting such a review.
  3. 3 ) From which departments will these staff be deployed.
  4. Why is the review to be chaired by the Department of the Prime Minister and Cabinet and not by the Minister’s Department.
Senator Durack:
LP

– The Minister for Employment and Industrial Relations has provided the following answer to the honourable senator’s question:

  1. 1 ) to (4) No review of Commonwealth Employment Service (CES) statistics of the number of persons registered for employment occurred or is proposed during 1 978. Following the recommendation of the Norgard Review of the CES, the Government introduced a Monthly Labour Force Survey as from February 1978. Since the Monthly Labour Force Survey was introduced, consideration has been given at the inderdepartmental level to the future format and presentation ofCES unemployment and vacancy statistics.

Public Service: Unattached Officers (Question No. 136)

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

asked the Minister representing the Minister Assisting the Prime Minister, upon notice, on 28 February 1978:

  1. 1 ) How many officers of the Public Service in each of the four divisions are classified as ‘unattached ‘ on each Department ‘s establishment.
  2. How many officers of the Public Service in each of the four divisions are classified as ‘unattached ‘ to the Public Service in general.
Senator Guilfoyle:
LP

– The Minister Assisting the Prime Minister has provided the following answer to the honourable senator’s question:

  1. 1 ) The numbers of officers classified as unattached at May 1 978 in each of the four divisions on each Department’s establishment are shown in the following table.
  1. ) The numbers of officers in each of the four divisions classified as unattached at May 1978 to the Public Service in general are as follows:

Communication Satellite (Question No. 137)

Senator Ryan:

asked the Minister representing the Minister for Post and Telecommunications, upon notice, on 28 February 1978:

  1. 1 ) Is the committee of inquiry set up to examine the question of a communication satellite for Australia regarded as a public inquiry or an interdepartmental committee.
  2. Who are the members of the committee, and from what organisations do they come.
  3. Are the members acting as representatives of their organisations, or as individuals.
  4. Is the transcript of the public hearings held by the committee available to the general public.
Senator Carrick:
LP

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

  1. 1 ) The Government established a Task Force whose proceedings are open to the public unless a party appearing before it requests confidentiality, of which there has been very little and that related to costs, manufacturing design and commercial information.

  2. The members of the Task Force are:

    1. White, C.B.E. (Chairman), General Manager, OTC (A)
    2. E. Beard, Postal and Telecommunications Department
    3. R. Brett, Australian Telecommunications Commission
    4. P. Coleman, Department of Finance
    5. G. Gosewinckel, OTC (A)

Dr B. L. Hennessy, Department of Health

  1. H. Maggs, Department of Defence

Brigadier D. J. McMillen, Department of Defence

  1. B. O’Keeffe, Department of Transport
  2. B. Wilson, Department of Transport
  3. Taylor, Postal and Telecommunications

Department.

  1. The Chairman was appointed by the Government. The organisations represented on the Task Force nominated their own representatives.
  2. The transcript of the public hearings at present exists only in a largely unedited form. It is primarily used by members of the Task Force to check their recollection of statements made by persons appearing at public hearings.

It is also available to all those who appeared for the purpose of allowing individuals to check their evidence.

The transcript is not, however, in its present form available to the general public.

I might add that the public hearings were open to all members of the public, except of course where a particular party giving evidence has requested that it be treated confidential. Additionally, the hearings have been widely covered by the media which has reported in some detail information supplied to the Task Force.

Cocos (Keeling) Islands (Question No. 218)

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

asked the Minister representing the Minister for Home Affairs, upon notice, on 8 March 1978:

What progress has been made in ensuring that the inhabitants of the Cocos (Keeling) Islands should have their own right to land on Home Island, as announced by the Minister for Administrative Services on 16 June 1977.

Senator Guilfoyle:
LP

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

The Commonwealth is purchasing from Mr Clunies-Ross the whole of his interests in the Cocos (Keeling) Islands, with the exception of his residence and an associated dwelling. I anticipate that the sale will be completed by September, and that the village area on Home Island will be transferred to the Cocos community by early next year.

It is proposed at the same time to lease the plantation at a nominal rental to a local co-operative that will be formed to run the plantation and engage in construction contracts with the Government and other business.

Cocos (Keeling) Islands (Question No. 220)

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

asked the Minister representing the Minister for Home Affairs, upon notice, on 8 March 1978:

What progress has been made in ensuring to the inhabitants of Home Island in the Cocos (Keeling) Islands the provision of freedom of movement and association, as announced by the Minister for Administrative Services on 1 6 June 1977.

Senator Guilfoyle:
LP

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

I am not aware of any recent evidence of lack of freedom of movement and association.

Cocos (Keeling) Islands (Question No. 221)

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

asked the Minister representing the Minister for Home Affairs, upon notice, on 8 March 1978:

What action has been taken to date to simplify the provision of Australian citizenship to all residents of Home Island in the Cocos (Keeling) Islands who wish to become Australian citizens, as announced by the Minister for Administrative Services on 16 June 1977.

Senator Guilfoyle:
LP

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

Draft Legislation to give effect to this decision is being prepared. See the public statement of 6 July 1978 which I issued jointly with the Minister for Immigration and Ethnic Affairs.

Cocos (Keeling) Islands (Question No. 222)

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

asked the Minister representing the Minister representing the Minister for Home Affairs, upon notice, on 8 March 1978:

  1. Did the Minister for Administrative Services announce, in a press release on 16 June 1977, that the use of token money in the Cocos (Keeling) Islands would be abolished as quickly as possible.
  2. 2 ) What steps have been taken to date to bring this about.
  3. Has any date been set for the abolition of the use of token money in the territory.
Senator Guilfoyle:
LP

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

  1. Yes.
  2. and (3) Plans for the management of the plantation following its purchase by the Commonwealth provide for the discontinuation of the use of tokens by 1 October 1978.

Industries Assistance Commission (Question No. 229)

Senator Wriedt:

asked the Minister representing the Minister for Business and Consumer Affairs, upon notice, on 8 March 1 978:

  1. 1 ) Did the Australian Financial Review of 6 March 1 978 claim, at page 7, that the alleged normal practice of releasing Industries Assistance Commission’s recommendations with Ministers’ announcements was not followed in relation to the Government’s decision concerning protection for the tyre cord fa bric industry.
  2. Is the report correct; if so, what were the reasons for not releasing the recommendations at the same time as the announcement.
  3. What were the final recommendations of the Industries Assistance Commission.
Senator Durack:
LP

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

  1. 1 ) No. The Financial Review’s comment was in relation to the Industries Assistance Commission’s report, not their recommendations.
  2. The report is correct in so far as the IAC’s Report was not released at the same time as the Cabinet Decision was announced. However, this was not a departure from normal practice. When Parliament is sitting it is usual to release such reports after they have been tabled in Parliament.

In this case the Cabinet’s Decision was announced on Friday 3 March, Parliament was due to sit on Tuesday 7 March and the report was tabled and released on that day.

  1. The recommendations of the IAC were contained in its report which was tabled on 7 March 1 978.

International Press Institute Conference: Telecom Services (Question No. 245)

Senator Ryan:

asked the Minister representing the Minister for Post and Telecommunications, upon notice, on 14 March 1978:

  1. 1 ) What was the cost to Telecom of the banquet hosted by Telecom for delegates to the International Press Institute conference held in Canberra in March 1978.
  2. What is the estimated cost, in terms of standard consumer charges, of the telephone facilities, local, subscriber trunk dialling and international, made available free to delegates at the conference.
  3. What costs apart from the Telecom banquet and free use of telephones did any Government departments or statutory bodies incur in respect of the conference.
  4. Why did the Government provide financial support and public resources for the International Press Institute conference which is run for the benefit of newspaper proprietors and editors.
Senator Carrick:
LP

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

  1. 1 ) Approximately $8,000.
  2. The use made of complimentary local and subscriber trunk dialling services for delegates was not measured. On the international side, normal charges for calls made overseas would have amounted to $2,100, but the cost to the Overseas Telecommunications Commission (Australia) would be lower than the normal commercial charges.
  3. Approximately 130 minutes of daily foreign language television news packages brought in by OTC(A) following the Visnews Daily Service, plus minor staff costs, amounted to $3,562.
  4. So far as Telecom Australia is concerned, the conference provided an excellent opportunity to display a number of existing and new telecommunications services of particular interest to the news media which spend millions of dollars a year on telecommunications services. Opportunity was taken also to explore with delegates and others attending the conference new and potential developments in telecommunications facilities of particular interest to the media.

Participation by OTC(A) was of a marketing nature to promote the services it provides, and a proposed new service, to an important market segment which generates considerable revenue to OTC(A).

Loans to Small Business and Rural Producers (Question No. 261)

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

asked the Minister representing the Minister for Industry and Commerce, upon notice, on 4 April 1978:

What further consideration has been given in respect of small businesses to laying down criteria for farm development loans and term loans, as undertaken by the former Minister for Industry and Commerce on 13 October 1977.

Senator Durack:
LP

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

The Term Loan Fund and Farm Development Loan Fund were set up in April 1962 and April 1966, respectively, following discussions involving the Government, and Reserve Bank and the major trading banks.

The Term Loan Fund was designed to assist in the provision of loans for capital expenditure for production in the rural, industrial and commercial fields, and to finance exports. Loans are made for fixed terms, varying usually between three and eight years.

The Farm Development Loan Fund was established to provide medium and long term finance for development purposes to rural producers, particularly small producers. In November 1972 the lending arrangements were widened and the 15 year maximum term removed.

The Government considers that these general arrangements are still appropriate and that it remains a matter for the banks themselves to determine the provision of loans from the two Funds to individual borrowers.

In this regard the Reserve Bank, in accordance with the Government’s request, informed banks of the Government’s policy in respect of small business and of its wish that banks should review their lending criteria in the light of that policy. Banks have indicated that their lending criteria, including those for Farm and Term Loans have been and will continue to be reviewed regularly to ensure they are appropriate to the current commercial situation.

Small Business Training Courses (Question No. 263)

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

asked the Minister representing the Minister for Industry and Commerce, upon notice, on 4 April 1978:

  1. What experts in small business management have been commissioned by the Department of Industry and Commerce to prepare training courses for small businesses.
  2. What publications have been prepared and what training courses and seminars have been arranged, by the Government.
Senator Durack:
LP

– The Minister for Industry and Commerce has provided the answer to the honourable senator’s question as follows:

  1. 1 ) The Financial Management Research Centre of the University of New England has been commissioned to produce two management training courses. A training course entitled ‘Planning and Starting a New Business’ should be available in the next two months and the other training course, ‘Managing the Retail Business’ towards the end of this calendar year.

Investigations have also commenced on the production of two further training courses. These are, ‘Managing the Service Business’ and ‘Managing the Growth Business’.

  1. Under the joint Commonwealth/State program of assistance to small business, the Commonwealth Government provides co-ordination and support facilities while the States provide counselling, information and referral services, and management training in co-operation with educational and other institutions. The Commonwealth does not, itself, conduct training courses or seminars for small business owners and managers.

Publications produced by the Commonwealth in cooperation with the States in the series ‘Managing the Small Business’ include:

Retailing

Marketing

Buying or Selling a Small Business

Avoiding Management Pitfalls

Marketing a New Product

Control Records- Retailing

Management Accounting for Small Firms

Importing

Sources of Finance for Small Business

Repair Services

Building Trade

Planning for Management Succession

Keeping Ahead of the Road Freight Business

Checklist for Starting a Business

Evaluating a Franchise

Taxation

Small Business: Needs (Question No. 264)

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

asked the Minister representing the Minister for Industry and Commerce, upon notice, on 4 April 1 978:

What action has been taken by the Government to ensure that all elements in the Commonwealth Government machinery are fully aware of small business requirements and that the possible impact of various Government measures upon the small business community is taken into account.

Senator Durack:
LP

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

Earlier this year I invited my colleagues, the Minister for Productivity and the Minister for Business and Consumer Affairs, to participate in an exchange of policy statements and other material to increase our awareness of what is happening in each of our Ministries and to facilitate coordination of effort. In extending this invitation I made particular reference to the impact of various measures upon small business.

One of the main problems in dealing with small business is the inherent difficulty in communicating with a sector made up of some 350,000 individual businesses. Therefore, in April I announced the establishment of the Small Business Advisory Council. The Council will provide a permanent link between the Government and the small business sector and advise me on small business issues. Its membership represents a wide cross-section of experience and involvement in the problems and development of small businesses around Australia.

Small Business: Survey (Question No. 266)

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

asked the Minister representing the Minister for Industry and Commerce, upon notice, on 23 May 1978:

What measures have been implemented within the Australian Bureau of Statistics and the Bureau of Industry Economics to improve the availability of information about small businesses, their problems and finance?

Senator Durack:
LP

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

The Bureau of Industry Economics is currently undertaking a survey of over 10,000 small firms throughout Australia. The survey which has been actively planned over the last five months, is designed to improve understanding and knowledge of the small business sector particularly in the area of finance. Questionnaires for the survey were issued during the week commencing 7 June 1 978.

To obtain information on the ability of small firms to raise finance under different economic conditions and at different stages of growth, the BIE has commissioned the University of Newcastle to conduct a follow-up study of about 3,000 firms which responded to a survey conducted by the University in 1 973. The study will examine the business experiences of those firms during the past 5 years and will compare it with their experience during the 5 years prior to 1 973.

In addition to the survey, the Bureau of Industry Economics has had discussions with the Australian Bureau of Statistics on possible improvements to the data already available from existing statistical collections.

In the short term, arrangements have been made by the Australian Bureau of Statistics for additional information about small businesses to be published from data collected in the annual economic censuses of establishments and enterprises in various industry sectors. It is expected that a review of the ABS integrated register of businesses, together with the introduction of new computer equipment and data base management systems will lead, in the long term, to a much improved facility for analysing trends in the structure of business and for drawing together statistics about businesses from various statistical collections.

International Subscriber Dialling (Question No. 315)

Senator Colston:

asked the Minister representing the Minister for Post and Telecommunications, upon notice, on 4 April 1 978:

  1. What is the percentage of telephone subscribers with access to International Subscriber Dialling in (a) each capital city; (b) Darwin; (c) each State and Territory; and (d) Australia.
  2. How many telephones are connected to ISD in (a) each capital city; (b) Darwin; (c) each State and Territory; and (d) Australia.
Senator Carrick:
LP

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

  1. Telecom Australia advises that the modification of exchanges to provide telephone subscribers services with access to ISD is a continuing process. Currently the majority of subscribers in metropolitan areas could be given access to ISD without charge through either their local exchange or an adjacent exchange. Overall, there are about 2 million services (53.3 per cent of total working services) served by exchanges which have been suitably equipped to provide access to ISD.
  2. The number and percentage of telephone services actually connected to ISD by City and State at 28 February 1978 was as follows:

Christmas Island: Damage to Equipment (Question No. 324)

Senator Missen:
VICTORIA

asked the Minister representing the Minister for Home Affairs, upon notice, on 4 April 1978:

  1. 1 ) Did the Minister for Administrative Services refuse, on 25 October 1977, to make public the Commonwealth Police report on damage to equipment on Christmas Island; if so, why.
  2. Will the Minister reconsider the decision.
  3. How does the Minister reconcile this apparent failure to provide information with the Government’s public commitment to freedom of information.
Senator Guilfoyle:
LP

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

  1. 1 ) Yes. In a letter dated 25 October 1977 the Minister for Administrative Services advised Mr J. McMillan, Lecturer in Law at the University of New South Wales, that the report is not available for public inspection. The report concerned is one dated 5 July 1977 prepared by the Superintendent of Police of Christmas Island. The Minister’s refusal is consistent with the established practice of not publishing police reports on investigations concerning the commission of offences. In so far as the police report in question contains matter that, if disclosed, would be reasonably likely to prejudice the investigation of a breach of the law, the Minister’s refusal is also consistent with the recommendations contained in Parliamentary Paper No. 400 ‘Policy Proposals for Freedom of Information Legislation- Report of Interdepartmental Committee, November 1976’, relating to law enforcement documents. The Freedom of Information Bill introduced in the Parliament on 9 June 1978 gives effect to those recommendations.
  2. and (3) Against this background and advice received from the Crown Solicitor’s Office I have reconsidered the previous decision and have determined that the report in its entirety should not be publicly released. However, in line with the Government’s intention to make available as much information as possible in the public interest, if the honourable Senator wishes to have a precis of the Police report in question I should be glad to arrange for this to be prepared and sent to him.

Cheynes Beach Holdings Limited (Question No. 326)

Senator Missen:

asked the Minister representing the Minister for Primary Industry, upon notice, on 4 April 1978:

  1. 1 ) Did the Minister refuse, on 8 November 1 977, to make public the licences, or record of the terms and conditions of such, issued under the Whaling Act 1960 to Cheynes Beach Holdings Limited, if so, why.
  2. Will the Minister reconsider the decision.
  3. How does the Minister reconcile this apparent failure to provide information with the Government’s public commitment to freedom of information.
Senator Webster:
NCP/NP

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

  1. On 15 August 1977 I received a request from Mr J. McMillan, Lecturer in Law at the University of New South Wales for permission to inspect the 1977 licences issued to Cheynes Beach Holdings Limited. I advised Mr McMillan that once issued the licences are the property of the Company and suggested that he direct his request to Cheynes Beach Holdings Limited. Following a further request on 28 September from Mr McMillan to inspect departmental copies of the licences I advised Mr McMillan that public access is not normally allowed to Government records less than thirty years old.
  2. and (3) I would point out to the Honourable Senator, however that Mr McMillan when requesting to view the licences, referred to my answer to the Honourable Senator’s previous question on this matter in which I provided a resume of the terms and conditions of the licences. (Hansard, 3 May 1977, page 1089). I have now reconsidered my earlier decision and arranged for a copy of the licences to be provided to Mr McMillan.

Redfern Aboriginal Medical Service (Question No. 336)

Senator Missen:

asked the Minister representing the Minister for Aboriginal Affairs, upon notice, on 5 April 1978:

  1. Did the Minister refuse, on 19 September 1977, to make public a report prepared by his Department on the Aboriginal Medical Service at Redfern; if so, why.
  2. ) Will the Minister re-consider the decision.
  3. How does the Minister reconcile this apparent failure to provide information with the Government’s public commitment to freedom of information.
Senator Guilfoyle:
LP

– The Minister for Aboriginal Affairs has provided the following reply to the honourable senator’s question:

  1. 1 ) On 22 August 1977 I received a letter from a Mr John McMillan, lecturer in Law at the University of New South Wales, referring to Press reports ‘about the impending closure of the Aboriginal Medical Service at Redfern, caused by the inability of the Service to obtain further Federal funding’. Mr McMillan asked whether any report had been prepared in my Department that discussed the future of the Service and recommended against further funding, and whether he might inspect a copy of such a report. My Senior Private Secretary replied on 19 September 1977 indicating that reports of the kind referred to are not available for inspection and enclosing some statements I had made on the matter of grants for the Aboriginal Medical Service.
  2. and (3) I would point out to the honourable senator that prior to Mr McMillan’s letter to me, it had already been publicly indicated in a joint Ministerial Press Statement by myself and my colleague the Minister for Health on 26 July 1977 and in my further Press Statement of 27 July 1977, that there had never been any suggestion of reducing operating funds for the Service and grants to it were continuing in the normal way. In addition, in my Press Statement of 6 November 1977 I announced that the Government had approved additional funding in the form of a grant of $60,000 over two years to finance a special nutritional program to help Redfern Aboriginals cope with child malnutrition. Further, I should mention that there was no Departmental report which, in the terms of Mr McMillan’s letter, ‘has discussed the future of the Service and which contains the recommendation against further funding’.

Medibank Review Committee: Reports (Question No. 337)

Senator Missen:

asked the Minister representing the Minister for Health, upon notice, on 4 April 1978:

  1. Has a series of reports from the Medibank Review Committee, referred to in House of Representatives Hansard, 26 May 1977, page 2019, been withheld from the public; if so, why.
  2. ) Will the Minister re-consider the decision.
  3. How does the Minister reconcile this apparent failure to provide information with the Government’s public commitment to freedom of information.
Senator Guilfoyle:
LP

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

  1. 1 ) Yes. In reply to a question without notice on 26 May 1976, House of Representatives Hansard, page 2461, the

Prime Minister emphasised that there had been no single formal report from the Medibank Review Committee but rather a number of successive ‘reports’ or communications between the Committee and the Government. The ‘reports’ in fact, included a series of minutes and advices involving the examination and re-examination of a wide variety of specific issues. Associated with this reporting by the Committee to the Government was extensive oral reporting (and discussion).

  1. and (3) Against this background and the recommendation contained in Parliamentary Paper No. 400 Policy Proposals for Freedom of Information Legislation- Report of Interdepartmental Committee- November 1976 and clause twenty-six of the Freedom of Information Bill introduced into Parliament on 9 June 1978, that there should be an exemption from mandatory access for documents that reflect internal deliberative processes involved in the functions of Departments, the disclosure of which would be contrary to the public interest, I have reconsidered the decision and decided that it would not be in the public interest for the various documents associated with the Medibank Review Committee to be disclosed on the grounds that policy advice from officials to Ministers on a matter of Government policy such as this, should not be publicly disclosed and that such disclosure could well lead to a lack of candour and frankness between Ministers and official advisers in the future. Had a formal report been prepared I would have proposed that it be examined in accordance with the meaning of the Parliamentary Paper and provisions of the Freedom of Information Bill to see whether exempt material in the Report could be segregated and the remainder made available. However, in the circumstances and in the nature of the reports’ such an approach is not appropriate.

Northern Territory Legislative Assembly: Transfer of Executive Responsibility (Question No. 345)

Senator Missen:

asked the Minister represent ing the Minister for the Northern Territory, upon notice, on 4 April 1978:

  1. 1 ) Did the Minister refuse, on 8 September 1977, to make public a report of the interdepartmental committee established to advise the Government on the constitutional, financial and administrative issues associated with the transfer of executive responsibility to the Northern Territory Legislative Assembly; if so, why.
  2. Will the Minister reconsider the decision.
  3. How does the Minister reconcile this apparent failure to provide information with the Government’s public commitment to freedom of information.
Senator Webster:
NCP/NP

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

  1. 1 ) Yes. In response to a request from Mr J. McMillan, Lecturer in Law at the University of New South Wales, on 15 August 1977 for access to the report, I advised Mr McMillan on 8 September that I would not release the report of the interdepartmental committee established to advise the Government on the constitutional, financial and administrative issues associated with the transfer of executive responsibility to the Northern Territory Legislative Assembly because its contents were very much in the nature of policy advice proffered to the Government for its deliberation.
  2. and (3) My decision was consistent with the recommendation contained in Parliamentary Paper No. 400, Policy Proposals for Freedom of Information LegislationReport of Interdepartmental Committee-November 1976’, and the provisions of clause twenty-six of the Freedom of Information Bill introduced into Parliament on 9 June, which provides that matter in the nature of, or relating to, opinion, advice or recommendation prepared for the deliberative processes involved in the functions of the Government, disclosure of which would be contrary to the public interest, should be exempt from mandatory access.

I remain of the opinion that it would be contrary to the public interest for advice from officials to Ministers on a matter of Government policy such as this to be publicly disclosed and that such disclosures could well lead to a lack of candour and frankness between Ministers and their official advisers in the future. Against this background I have reconsidered my decision and decided that the report should not be disclosed.

As the honourable senator would be aware, however, the Government’s policy on the transfer of financial and executive responsiblity to the Northern Territory has been widely publicised by the issuing of a number of Press Releases and Ministerial Statements. In this regard I should mention that when writing to Mr McMillan I forwarded a copy of my Press Release dated15 July 1977 on the subject and on 14 September 1977 I made a further Statement in Parliament (House of Representatives Hansard, pages 1087-90). Further, as the honourable senator would also be aware, the Government’s Northern Territory (Self-Government) Bill was passed on 8 June thus permitting self-government to be conferred on the Northern Territory on 1 July.

Freedom of Information: Antarctic Region (Question No. 346)

Senator Missen:

asked the Minister for

Science, upon notice, on 4 April 1 978:

  1. Did the Minister refuse, on 12 October 1977 to make public the submissions made by the Science Department to the Government regarding the exploration and development of the Antarctic region; if so, why.
  2. 2 ) Will the Minister reconsider the decision.
  3. How does the Minister reconcile this apparent failure to provide information with the Government’s public commitment to freedom of information.
Senator Webster:
NCP/NP

– The answer to the honourable senator’s question is as follows: (1)I presume the honourable senator is referring to a reply I made on 12 October 1977 to a request of 15 August 1977 from Mr J. McMillan, Lecturer in Law at the University of New South Wales for access to submissions dealing with Antarctica that were prepared by my Department. I advised Mr McMillan that I could not accede to his request as the submissions had been prepared for Cabinet’s consideration and that according to the long established practice that Cabinet documents were confidential to the Government of the day, such documents were not available for public access.

  1. and (3) My decision is consistent with the recommendations contained in Parliamentary Paper No. 400, Policy Proposals for Freedom of Information Legislation- Report of Interdepartmental Committee- November 1976, and the provisions of clause twenty four of the Freedom of Information Bill introduced into Parliament on 9 June, that documents the disclosure of which would reveal any deliberation or decision of the Cabinet are exempted from mandatory access. Against this background I confirm that the submissions cannot be publicly disclosed. I would point out to the honourable senator, however, that when replying to Mr McMillan I forwarded copies of my Press Release of 1 7 August 1 977 and my Statement in Parliament of 24 August 1977 concerning increases in Australia’s Antarctic activity which touched upon some of the issues raised in Mr McMillan’s letter. I would also point out to the honourable senator that on 7 November 1977 I tabled a detailed information paper on Antarctica (Hansard, pages 2170-1), and, earlier this year, made a further reference to the preparation of a Government Policy Information Paper (White Paper) relating to Antarctic Policy, in response to a question without notice. (Senate Hansard, page 1638).

Wamuran Post Office (Question No. 374)

Senator Colston:

asked the Minister representing the Minister for Post and Telecommunications, upon notice, on 10 April 1978:

Are there any plans to close the Post Office at Wamuran, Queensland; if so, what are the details.

Senator Carrick:
LP

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

It has not been decided, at this stage, to close the post office at Wamuran.

However, Australia Post is proposing to amalgamate the four mail services which operate currently in the area. (Two of the services now operate three times weekly, and two, five times weekly). The proposed new service will provide a five times weekly delivery service to all residents of the area and will include a delivery to all residents of Wamuran on a five times weekly basis.

It is expected that the amalgamation of the existing services would reduce the need for a post office at Wamuran because residents would no longer be required to attend the post office to collect their mail. When the new service is operating, a further review of the area will be conducted.

If it is decided, at some future date, to close the post office, arrangements would be made for the postal needs of the community to be adequately met in other ways.

Students of Indonesian History and Culture (Question No. 403)

Senator Knight:
ACT

asked the Minister for Education, upon notice, on 1 3 April 1 978:

  1. 1 ) What is the estimated number of students studying Indonesian history and culture, other than language, in Australia at: (a) secondary level; (b) universities; (c) colleges of advanced education; and (d) other tertiary institutions or facilities for continuing education.
  2. What are the comparable figures for each year from 1973 to 1977.
Senator Carrick:
LP

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

  1. and (2) No accurate statistics are available to answer the honourable senator’s question.

The Asian Studies Co-ordinating Committee circulated a survey to schools in 1976 in connection with the ‘Hemisphere: Indonesia ‘ supplement. Responses give the following numbers for students taking ‘substantial programs of Indonesian studies’ (i.e. study of Indonesia as part of history, geography, Asian social studies, economics or art courses for half a term or more) in Government secondary schools:

These figures may not include students who undertake study of Indonesia as part of a larger course. I understand one course in New South Wales, Asian Social Studies, is taken by more than 60,000 students.

The 1978 Directory of Tertiary Courses lists the following institutions as teaching ‘Asian Studies’, which would embrace the study of Indonesia: Australian National University, Flinders University, Griffith University, University of Melbourne, University of Queensland, Swinbourne College of Technology, Western Australian Institute of Technology, Macquarie University, Murdoch University.

Community Youth Support Scheme (Question No. 412)

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

asked the Minister representing the Minister for Employment and Industrial Relations, upon notice, on 2 May 1978:

  1. 1 ) What was the amount received under the Commonwealth Grants Support Scheme by each organisation listed in the Minister’s answer to Question 184 (Senate Hansard, 12 April 1978, pages 1224-6).
  2. In respect of each organisation mentioned, what was the amount that was applied for by each organisation.
  3. Which organisations in New South Wales applied unsuccessfully for grants under the scheme since I July 1 977, and in what Local Government Areas are they located.
  4. What criteria are adopted in determining the allocation of grants under the scheme.
  5. Did any organisations within the Queanbeyan City Council area receive grants under this scheme; if so, which organisations, what amount did they receive, and what amount did they apply for.
Senator Durack:
LP

– The Minister for Employment and Industrial Relations has provided the following answer to the honourable senator’s questions:

  1. 1 ) The following amount was received, under the Community Youth Support Scheme, by each organisation listed in the answer to the honourable senator’s previous question:
  1. I regret that this information is not readily available without extensive and time consuming investigation.
  2. As at 31 May 1978, there have been no unsuccessful applications from organisations in New South Wales.
  3. The criteria adopted in determining the allocation of grants under the Community Youth Support Scheme are those laid down in the Community Youth Support Scheme Guidelines. Broadly speaking, the Guidelines require that the proposed project must have a program of employmentrelated activities which are relevant to the needs of participants and which develop or maintain their orientation to work, improve their ability to keep a job once they have found it, and help them to maintain their sense of direction, and usefulness until they find employment. Preference may be given to the approval of projects in areas of relatively high youth unemployment. Applications for a CYSS grant must demonstrate that the needs of the target group of young unemployed people have been identified and that the project has community support.
  4. 5 ) Within the Queanbeyan City Council area, the YMCA CYSS Committee has received a grant under the Scheme since1 July 1977. The amount applied for was $24,630 and the amount granted was $ 1 8,365.

Government Departments and Statutory Authorities: Overtime (Question No. 416)

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

asked the Min ister representing the Minister Assisting the Prime Minister, upon notice, on 2 May 1978:

How much overtime has been paid to officers in each Department or Statutory Authority since 1 July 1977.

Senator Guilfoyle:
LP

– The Minister Assisting the Prime Minister has provided the following answer to the honourable senator’s question:

Overtime paid to staff in Departments and Statutory Authorities (except those operating on a commercial basis) for the period 1 July 1 977 to 30 April 1 978 is as follows.

  1. 1 ) Figures include Meat Export Inspection Services. Recoveries of $2,453,821 have been received from industry.
  2. Half is recoverable from the States of New South Wales. Victoria. Queensland and South Australia.
  3. This account is funded equally by the Commonwealth and New South Wales Governments.

Health Research (Question No. 426)

Senator Lewis:
VICTORIA

asked the Minister representing the Minister for Health, upon notice, on 3 May 1978:

  1. What percentages of the 1978 National Health and Medical Research Council Grant recommendations were related to: (a) heart diseases; (b) cancer; (c) diseases endemic to the Aboriginal people.
  2. Will the Government give consideration to the introduction of a system of ‘priority guidelines’ for governmentaided research projects carried out by individuals or research teams in Australia, so that priority is given to projects of national importance.
Senator Guilfoyle:
LP

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

  1. 1 ) The National Health and Medical Research Council has approved $6. 83m of its total allocation of $1 1.8m for project grants for 1978. Of this:

    1. $339,593 was for research related to heart disease:
    2. $637,8 19 was for cancer research; and
    3. $51,780 was for diseases endemic to Aboriginal people.

In addition, the Council provided $1,723,604 for the support of the Walter and Eliza Hall Institute, Melbourne, a substantial proportion of which is related to oncology and immunology. Also $ 1 , 097,396 was allocated for the Howard Florey Institute, Melbourne University, of which a large proportion is spent on research related to hypertension.

While (c) above is directed towards specific ailments endemic to the Aboriginal people, it should be borne in mind that those people are also prone to all the other diseases which affect the general population. Therefore the results of all research supported by the Council is likely to have beneficial implications for Aboriginal people.

The Commonwealth Department of Aboriginal Affairs has provided, for several years, financial support (approximating $100,000 per annum) for research projects relating to Aboriginal health. These projects are considered by the NH and MRC Medical Research in Aborigines Subcommittee for approval before funding, and have included the study of such conditions as trachoma, gastro-enteritis, nutritional deficiencies and dental caries among various segments of the Aboriginal population.

  1. One of the functions of NH and MRC is to advise the Government on the expenditure of money on medical research under the Medical Research Endowment Fund. The Council established for this purpose the Needs in Medical Research (Standing) Committee which is charged to investigate and report on the needs in medical research in Australia and the areas where support is specially needed. The Committee has recently held two seminars, one in Sydney and one in Melbourne, which were attended by a wide cross section of Australia’s research community, to assist in determing areas of special need. In addition, the Council has established special working parties to look at identified areas of medical research needing special support. This has led to the establishment of special postgraduate training fellowships and to the establishment of specialised research units.

Although the Council takes the abovementioned action to stimulate and support research in areas of special need, it is the research community which initiates such research. For this purpose, the Council calls annually for applications for project grant support that are assessed through a peer review system using both local and overseas experts and an interview by a visiting multidisciplinary committee.

While this may seem a lengthy procedure, it ensures that all applications for support are evaluated to the same standard and that only research considered to be of the highest scientific merit is recommended for Government support.

Defence Orders: Offset Arrangements (Question No. 427)

Senator Lewis:

asked the Minister representing the Minister for Productivity, upon notice, on 4 May 1978:

  1. 1 ) What are the details of orders which are the subject of the $ 164m offset arrangements detailed in the 1977 Defence Report.
  2. Which Australian Companies received such orders.
  3. 3 ) What orders were placed during 1 976-77.
  4. How many persons were employed full or part-time during 1976-77 in making offset arrangements.
  5. What were the total costs if any in salaries and in overseas travel for such persons.
Senator Durack:
LP

– The Minister for Productivity has provided the following reply to the honourable senator’s question:

  1. 1 ) The figure of $ 1 64m given in the 1 977 Defence Report is made up of orders for work as set out below. It is pointed out that much of the detail involved is of a commercially confidential nature and cannot be publicly recorded without breach of confidence. For this reason general sector and value totals only are given.
  1. For reasons similar to those given in reply to Part1 , no details of actual orders are available for publication. The principal Australian companies that have received orders are:

Alcan Australia Ltd

Amalgamated Wireless (Australasia) Ltd

Ansell Rubber Co Pty Ltd

Australian Consolidated Industries Ltd

Australian National Industries Corp. Ltd

Australian Precision Optics Pty Ltd

British Aerospace Australia Ltd

Burroughs Ltd

Collins Radio Australia Ltd

Commonwealth Aircraft Corporation Ltd

Commonwealth Industrial Gases Ltd

Control Data Australia Pty Ltd

EMI (Aust) Ltd

Government Aircraft Factories

Government Ordnance Factories

Hawker de Havilland Pty Ltd

Honeywell Pty Ltd

IBM Australia Ltd

Information Electronics Ltd

Interdata Computers Pty Ltd

NCR Australia Pty Ltd

Normalair Garrett Pty Ltd

Racal Electronics Ltd

Sperry Univac Corp.

Standard Telephones and Cables Pty Ltd

Transdata Pty Ltd

Warburton Franki Pty Ltd

Wormald International (Aust) Pty Ltd

In addition many small orders have been placed with various other Australian firms on a direct and sub-contract basis.

  1. The Offset program is an ongoing activity, and it is not possible to accurately detail the individual orders received in any one year. When work of a particular nature is accepted as an offset to a major overseas purchase this may be spread over a number of years and may involve orders by the overseas supplier on several Australian companies. While the value of such orders is advised to the Offsets Secretariat in my Department (and forms the basis of the text given in response to Part 1 above) any details of items and quantities are provided on an ‘in-confidence’ basis to protect commercially sensitive issues.

The value of offset orders recorded in any one year does not necessarily indicate the value of work performed in that year. An offset value in one year may be ‘worked out’ over several years, but appears only once in the record, although contract variations may give rise to increases or reductions year by year.

Offsets credits are allowed for training Australians providing tooling or plant waiving or reducing licence fees assisting to establish a facility for support, repair or overhaul of approved equipment design and development assistance where resources are not available in Australia transfer of technology in certain instances and therefore do not always appear as separate orders.

For these reasons a list of orders placed in any year would have no value and is not provided.

  1. A Secretariat of 5 persons in the Department of Productivity is employed largely, but not exclusively, on Offset matters.

The Government’s policy is that offsets are sought against purchases of equipment by Government Departments and instrumentalities where the value of the overseas order exceeds $0. 5 m.

Because of this there is an involvement of many areas of Government in ensuring that Australian industry is given adequate opportunity and access to the overseas suppliers. With the ongoing nature of the program it is not possible to determine the number of persons or the total time employed on negotiating offsets. For instance, in the Defence area offsets are a requirement of all major purchases and as part of the normal procurement process impinge on a large number of persons for short periods as occasion demands. In most Defence procurements a Service project office is established to ensure that all necessary requirements of the equipment acquisition process are implemented. Local and overseas officers including Service personnel, members of overseas missions and Australian Government Representatives overseas can be involved.

Likewise with civil purchases there is involvement in many different areas.

  1. Total annual salary for the personnel of the Offsets Secretariat is approximately $70,000. It is not possible to estimate the cost of other effort incidentally devoted to offsets work, and referred to in Part 4 above.
Senator MASON:
NEW SOUTH WALES · AD

– That the following matter be referred to the Standing Committee on Constitutional and Legal Affairs: The desirability and practicability of consulting the Australian people on whether or not they wish to have the right to initiate Federal legislation, with particular reference to-

  1. the development of an educational and media campaign designed to inform all Australians of the experience of countries and States such as Switzerland, California and 22 other States in the United States of America in initiating legislation;
  2. whether an appropriate method of initiation might be the presentation of a petition signed by not fewer than 2 per cent of voters asking that questions be put to referendum, the putting of such questions then to be mandatory, and their becoming law if carried by a majority of voters;
  3. the establishment of a timetable leading up to a national referendum seeking an amendment of the Constitution to permit citizen initiative;
  4. whether such a referendum should, as well as seeking a direct yes/no decision on the principle of providing a right of citizen initiative, also provide a series of options setting out the conditions of initiative, including, most importantly, the actual percentage of voters necessary to sign a petition in order to initiate a referendum; and
  5. the possible reference of the question to a Constitutional Convention of which half the membership would be members of the public and the other half would be members of Parliament, elected by both Houses, at a Joint Sitting.

Senator Carrick (The Leader of the Government in the Senate): To move-

  1. 1 ) Days and Hours of Meeting: That, unless otherwise ordered, the days and hours of meeting of the Senate be Tuesdays at half-past two p.m., Wednesdays at fifteen minutes past two p.m., and Thursdays at half-past ten a.m.
  2. Suspension of Sittings: That, unless otherwise ordered, the sittings of the Senate, or of a Committee of the Whole Senate, be suspended from one p.m. until fifteen minutes past two p.m., and from six p.m. until eight p.m.
  3. Adjournment of Senate: That, unless otherwise ordered, at half-past ten p.m. on Tuesdays and Thursdays and eleven p.m. on Wednesdays the President shall put the Question- That the Senate do now adjournwhich Question shall be open to debate; if the Senate be in Committee at that hour, the Chairman shall in like manner put the Question- That he do leave the Chair and report to the Senate; and upon such report being made the President shall forthwith put the Question- That the Senate do now adjournwhich Question shall be open to debate: Provided that if the Senate or the Committee be in Division at the time named, the President or the Chairman shall not put the Question referred to until the result of such Division has been declared; and if the business under discussion shall not have been disposed of at such adjournment it shall appear on the Notice Paper for the next sitting day.
  4. Government and General BusinessPrecedence: That on all sitting days of the Senate, unless otherwise ordered, Government Business shall take precedence of General Business, except that General Business shall take precedence of Government Business on Thursdays, after eight p.m.; and that, unless otherwise ordered, General Orders of the Day take precedence of General Notices of Motion on alternate Thursdays.

Senator Knight: To move; That, in the opinion of the Senate, the appropriate Minister should take urgent action to table in the Parliament a proposal for the construction of guard boxes for the shelter of Commonwealth Police patrolling Parliament House so that Parliament may approve the proposal in accordance with section 5 of the Parliament Act 1974.

Senator Harradine: To move; That the Senate is of the opinion that the Australian Government should not participate in any trade or aid negotiations with the Government of Vietnam until that Government allows those Vietnamese approved for entry into Australia to depart Vietnam and join their relatives in Australia.

Senator MASON:
NEW SOUTH WALES · AD

  1. 1 ) That a Select Committee of the Senate be appointed to consider and report upon the possible planning, including terms of reference, for a national convention, to be held within two years, for a ten year indicative plan for the Australian economy, such convention to include representatives of all political parties, employers’ groups, unions and government, to attempt to establish basic guidelines on which all could agree and which would remain constant regardless of changes of government, with particular reference to-

    1. the massive unemployment problem likely as a result of the growing use of computers and automation in Australia;
    2. the flow-on of money to the community at large as a result of such automation, and other structural changes desirable in the society; and
    3. possible new initiatives in Australian primary and secondary industry, with special regard to the export industry.

  2. That provisions relating to membership powers and proceedings of the Committee be contained in a subsequent Resolution.

page 45

NOTICES OF MOTION

The following Notices of Motion were presented:

Senator Button: To move; That the Freedom of Information Bill 1978 be referred to the Standing Committee on Constitutional and Legal Affairs for inquiry and report as soon as possible.

Senator MASON:
NEW SOUTH WALES · AD

– That, in the opinion of the Senate, it is absolutely essential to the cause of good, honest and fair government that a public fund should be established forthwith to finance candidates, parties and groups during elections, with the money for this fund coming from-

  1. contributions from persons, companies, trade unions and any other interested groups; and
  2. the assignment for this purpose, of part of a person’s income tax, up to a maximum of 10 per cent, a space to be provided on every tax return form in which a taxpayer could indicate how much, if any, of his assessed tax should be so assigned.

Cite as: Australia, Senate, Debates, 15 August 1978, viewed 22 October 2017, <http://historichansard.net/senate/1978/19780815_senate_31_s78/>.

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