House of Representatives
22 August 1929

11th Parliament · 1st Session



Mr. Speaker (Hon. Sir Littleton Groom) took the chair at 2.30 p.m., and read prayers.

page 203

PUBLIC WORKS COMMITTEE

Mail-handling Appliances, General Post Office, Sydney.

Mr. M. CAMERON, as Chairman, presented the report of the Parliamentary Standing Committee on Public Works, together with minutes of evidence, relating to the proposed extension of the Installation of Mail-handling Appliances at the General Post Office, Sydney.

Ordered to he printed.

page 203

PUBLIC ACCOUNTS COMMITTEE

Temporary Employment in Commonwealth Public Service.

Mr. G. FRANCIS, as Chairman, presented the report of the Joint Committee of Public Accounts on Temporary Employment in the Commonwealth Public Service.

Ordered to be printed.

page 203

QUESTION

MIGRATION

Mr MAKIN:
HINDMARSH, SOUTH AUSTRALIA

– I hold in my hand a copy of a newspaper printed in Great Britain, which in one of its illustrations shows a labour bureau crowded with men seeking employment. On a wall at the back of the building, and in full view of the crowd, is the sign “ Australia, Work Guaranteed,” In view of the great amount of unemployment in every capital of Australia, and in many of our larger towns, will the Prime Minister take steps to see that this class of advertising is discontinued as it conveys a very wrong impression of the industrial position in Australia?

Mr BRUCE:
Minister for External Affairs · FLINDERS, VICTORIA · NAT

– There is, of course, no warrant for advertising of the class referred to by the honorable member, and I shall make inquiries into the matter and see that the practice is stopped.

page 204

QUESTION

QUESTIONSWITHOUT NOTICE

Mr BRUCE:
NAT

– During the earlier part of the session much time was occupied at the beginning of the sittings of the House with the asking of questions without notice - sometimes half an hour or more. To save time, and in order that there may be full opportunity to obtain the information which honorable members require, the Government has decided to ask for notice of all questions except such as may be very urgent. This will ensure that more satisfactory replies can be given.

Mr THOMPSON:
NEW ENGLAND, NEW SOUTH WALES

– Are we to understand that it is not the desire of the Government that honorable members should ask questions without notice? If that is so, I suggest that we be definitely informed to that effect, so that we may not waste our time in asking questions in the House.

Mr BRUCE:

– The privilege of asking questions without notice is given to honorable members so that they may obtain from Ministers information that is so urgently needed that a question cannot be placed on the notice-paper to be answered the following day. As there is a full programme of legislation to be put through this session, the Government proposes not to answer questions without notice unless they have this element of urgency.

page 204

QUESTION

CORK PRODUCTS

Mr BERNARD CORSER:
WIDE BAY, QUEENSLAND

– “Will the

Minister for Trade- and Customs (Mr. Guile tt) inform me whether any action has been taken to cause the. Tariff Board to investigate the requests that have been made for an increased duty on cork products ?

Mr GULLETT:
Minister for Trade and Customs · HENTY, VICTORIA · NAT

– I understand that this subject is now receiving the attention of the Tariff Board.

page 204

QUESTION

DEPARTMENT OF LABOUR AND INDUSTRY

Mr C RILEY:
COOK, NEW SOUTH WALES · ALP; FLP from 1931

– Has any appointment been made to the position of Secretary to the Department of Labour and Industry, and have appointments been made to the positions of industrial inspectors for which applications have been called ?

Mr LATHAM:
Attorney-General · KOOYONG, VICTORIA · NAT

– No appointments have been made’ to the positions mentioned.

page 204

REPATRIATION ACT

Disabled Soldiers

Mr COLEMAN:
REID, NEW SOUTH WALES

– Is it a fact that under the amending repatriation legislation passed last session an anomaly has arisen which affects returned soldiers whose disabilities, although admitted by the department, are not considered to be pensionable; if so, will the Minister take early steps to. amend the act so as to cover this class of disabled soldier.

Sir NEVILLE HOWSE:
Minister for Health · CALARE, NEW SOUTH WALES · NAT

– Arrangements have already been made by the Repatriation Department to meet that difficulty.

page 204

QUESTION

SOUTH AUSTRALIAN DISABILITIES

Mr MAKIN:

– Is the Prime Minister in a position to make a statement to the House regarding the nature of the grant to be paid to the South Australian Government?

Mr BRUCE:
NAT

– Information on that subject will be contained in the budget statement of the Treasurer.

page 204

PERSONAL EXPLANATION

Paragraph in Melbourne Herald.

Dr MALONEY:
MELBOURNE, VICTORIA · ALP; FLP from 1931; ALP from 1936

– I desire to. make a personal explanation. The Herald newspaper of Melbourne has seen fit to attack me for asking questions in this House. Any one who has studied parliamentary procedure and practice as laid down in May, will understand that the asking of questions is one of the most important privileges of an honorable member. The Minister for Home Affairs (Mr. Abbott) is reported by this newspaper to have said that he is thinking of having a return made showing the number of questions asked by members in a flippant and frivolous spirit. I can assure him that I have never asked questions in a flippant and frivolous spirit. Every question that I have directed to the Government has been put for the purpose of seeking information. The Federal Capital Territory is without representation in this House, and in view of the fact that already £12,000,000 has been expended - most of it wasted - at Canberra, surely when injustices are brought under my notice I have a right to exercise my privilege of asking questions.

Mr SPEAKER (Hon Sir Littleton Groom:
DARLING DOWNS, QUEENSLAND

– The honorable member is going beyond the scope of a personal explanation.

Dr MALONEY:
MELBOURNE, VICTORIA · ALP; FLP from 1931; ALP from 1936

– It is not often that I give way to indignation in my declining years. The Herald is one of my best friends in Melbourne, and it has shown much kindness not only to me but also to the poor people of that city. The notice-paper shows that 24 questions are being asked by Government supporters.

Mr Atkinson:

– The honorable member himself has asked a number of questions.

Dr MALONEY:
MELBOURNE, VICTORIA · ALP; FLP from 1931; ALP from 1936

– I daresay that I have asked more than my fair proportion, but honorable members will- recognize that we have had a recess of five months, and are, therefore, entitled to obtain information at this stage. The Government has never refused to reply to my questions. All matters with which I have concerned myself have been of public importance, and as I have said before, T intend to continue to claim the privilege of asking questions in this House.

page 205

QUESTION

NATURALIZATION OF EX-ENEMY ALIENS

Dr MALONEY:
MELBOURNE, VICTORIA · ALP; FLP from 1931; ALP from 1936

asked the Minister for Home Affairs, upon notice -

  1. Is it a fact that aliens who have completed the prescribed residence and can obtain the necessary certificates as being fit to be citizens are not allowed to become citizens, if during the late war they refused to obey the orders of the Consul-General of an alien nation to return to their native country to fight the enemies of such country?
  2. Have any regulations been passed in the Department against any such aliens who are resident in Australia. If so, what arc the names and addresses of such residents?
Mr ABBOTT:
Minister of Home Affairs · GWYDIR, NEW SOUTH WALES · CP

– The answers to the honorable member’s questions are as follow : -

  1. No such practice exists at the present time, although certain applications for. naturalization received shortly after the termination of the late war from aliens who had refused to join up with their country’s military forces during the war period, were deferred for some time before being finalized.
  2. No such regulations have been passed.

page 205

QUESTION

TRADE WITH THE UNITED STATES OF AMERICA

Mr PRICE:
BOOTHBY, SOUTH AUSTRALIA

asked the Minister for Trade and Customs, upon notice -

  1. What were the chief items and values of imports from the United States of America for the financial year ended 30th June, 1929?
  2. What was the value of trade balances in favour of the United States of America for the same period?
  3. Is it a fact that the trade balance in favour of the United States of America for ten years (1918 to 1928) amounted to £212,910,949?
Mr GULLETT:
NAT

– The answers to’ the honorable member’s questions are as follow : -

  1. Particulars regarding the items of imports will not be available for some considerable time. The appended figures show the value of imports from the United States during the year 1928-29, according to classes of commodities.
  1. £29,349,540.
  2. Yes, for the ten financial years ended 30th June, 1928.

page 206

QUESTION

DISEASED GLANDS IN SHEEP

Dr MALONEY:
MELBOURNE, VICTORIA · ALP; FLP from 1931; ALP from 1936

asked the Minister for Health, upon notice -

  1. Has his attention been drawn to the statement by the general secretary of the Country Party at Kyabram, reported iti the press of the 30th July, 1929, namely, that 30 per cent, of the mutton exported had infected glands?
  2. Is it a fact that cancer in the humans attacked the glands?
  3. Is it proof that when glands are affected in sheep and other animals it is from certain diseases ?
  4. Are the diseases which affect these glands liable to be injurious to the human being who consumes such meat?
Sir NEVILLE HOWSE:
NAT

– The answers to the honorable member’s questions are as follow: -

  1. Yes. The disease in question is Caseous Lymphadenitis, which is caused by the bacillus of Preisz-Nocard. It has been noted in practically every part of the world, including Australia, and is at present the subject of investigation by the Council for Scientific and Industrial Research.
  2. Yes.
  3. Yes.
  4. With regard to the disease referred to in question (1) so far as is known it is not communicable to man.

page 206

QUESTION

IMPORTS AND EXPORTS

Mr PRICE:

asked the Minister for Trade and Customs, upon notice -

What was the value of Australian imports and exports for the financial year ended 30th June, 1929, to and from (a) Great Britain,

  1. b ) other parts of the British Empire, ( e ) the United States of America, and (d) other foreign countries?
Mr GULLETT:
NAT

– The information will be obtained. The compilation of trade figures for 1928-29 is at present in progress, but it will be some weeks before the particulars are available.

page 206

QUESTION

NORFOLK ISLAND

Communication FROM Planters : Subsidy to Shipping Company.

Dr MALONEY:
MELBOURNE, VICTORIA · ALP; FLP from 1931; ALP from 1936

asked the Prime Minister, upon notice -

  1. What was the date of the communication from the Norfolk Island planters addressed to the Acting Administrator’ of Norfolk Island, and handed to Mr. Leonard, the Secretary, with a personal request to forward it to the Prime Minister’s Department by the mail leaving Norfolk Island on the 26th January, 1929?
  2. What was the date of its delivery?
  3. Did any delay occur; if so, what was the cause of the delay, and who was responsible for it?
  4. What was the date of the agreement for the payment of the subsidy to Burns, Philp and Company Limited re Norfolk Island?
  5. What is the total subsidy paid to such firm, particularizing the .separate amounts allotted to Lord Howe Island, Norfolk Island, New Hebrides, Solomon Islands, Papua, &c. ?
Mr BRUCE:
NAT

– The answers to the honorable member’s questions are as follow : -

  1. It is presumed that the communication to which the honorable member refers is one relating to the projected visit to Australia of a representative of the Norfolk Island Planters Association. The date of that communication is 24th January, 1929.
  2. The then Acting Administrator has reported that the letter was delivered at his office on the evening of 2oth January.
  3. The letter was transmitted by the Acting Administrator under cover of a despatch dated 5th February, and reached my department on 14th February.

A steamer left Norfolk Island on 20th January, the day immediately following the receipt of the letter, but the Acting Administrator considered it proper to make inquiries as to the extent to which the meeting referred to in the communication was representative of the planters, before he forwarded the letter and sponsored the association’s representative personally. The further information he required was contained in a letter from the secretary of the association, dated 31st January, which did not reach him until 5th February, the date of his covering despatch.

  1. The tender of Burns, -Philp and Company for the Pacific Islands shipping services was approved on 12th February, 1029, and the contract commenced On 1st April, 1929.
  2. The subsidy for the whole of the services is £55,000 per annum. No amount is allocated to a particular section.

page 206

QUESTION

NATIONALITY OF MARRIED WOMEN

Mr PARSONS:
ANGAS, SOUTH AUSTRALIA

asked the Prime Minister, upon notice -

  1. If the Government is contemplating legislation with regard to the nationality of married women, will effect be given to the resolution agreed to by this House, which was moved by Mr. Duncan-Hughes on the lines of a similar motion in the House of Commons, viz. : - “ That, in the opinion of this House, a British woman should not lose or be deemed to lose her nationality by the mere act of marriage with an alien, but that it should be open to her to make a declaration of alienage”?
  2. In view of the fact that at the Imperial Conference of 1926 it was decided that further consideration of the question should be postponed, pending the report of the Committee of Experts which, it is proposed, should deal with various matters connected with the operation of dominion legislation, and in view of the possibility of an attempt being made to regulate the problem of dual nationality and no nationality by international agreement (vide Summary of Proceedings of Imperial Conference, 1926), will the Prime Minister inform the House -

    1. Whether the report of the Committee of Experts is available; and
    2. Whether the Government intends to send a delegation to the Codification of International Laws Conference, to be held early next year at Geneva, under the auspices of the League of Nations, at which this subject will be considered?
Mr BRUCE:

– The answers to the honorable member’s questions are as follow : -

  1. Any amendment of the Commonwealth Nationality Act in the direction- indicated could only be made after the amendment of the British nationality law, and subject to the various dominions being in accord, as it is necessary that there should be uniformity of nationality law throughout the Empire.

The question of the loss of nationality by a woman as a result of marriage with a foreigner was raised and fully considered in connexion with a questionnaire drawn up by the Preparatory Committee on the Codification of International Law in respect to nationality. The reply sent by the Commonwealth Government, which was in accord with the attitude of the British Government and the governments of other dominions, was to the effect that the Commonwealth Government would be prepared, subject to the general acceptance of similar provisions, to consider favorably a proposal that a British woman marrying a foreigner should not thereby lose her nationality if by her husband’s national law she did not, on marriage, acquire her husband’s nationality. 2. (a) The Committee of Experts on the operation of dominions legislation and other questions, will not meet in London until October next. This committee will not, however, discuss the question of nationality.

  1. A provisional date only, namely, 13th March, 1930, has been so far fixed by the Council of the League of Nations for the meeting of this conference. The Government will give consideration to the question of representation thereat when the date of the conference is definitely fixed.

page 207

QUESTION

WARPENSIONERS ANDWAR DEBTS

Dr.MALONEY asked the Treasurer, upon notice -

Is it a fact that dependants of the brave soldiers who lost their lives in the late war, and also the dependants of the soldiers who were so severely wounded as to prevent them from earning their living, are penalized by being compelled to assist in paying the interest on war debts?

. If so, will he request his department to make actuarial calculations as to the amount individually paid with a view to returning such amount to each of the dependants of our brave men?

Dr EARLE PAGE:
Treasurer · COWPER, NEW SOUTH WALES · CP

– The answers to the honorable member’s questions are as follow : -

  1. The dependants referred to are subject to the general taxation laws of the Commonwealth from which interest is derived, but in this respect they are not penalized.
  2. It is not proposed to amend the laws relieving such dependants from the incidence of taxation - even if it were practicable to do so - and no good purpose would therefore be served by making the actuarial calculations referred to.

page 207

QUESTION

FILM CENSORSHIP

Mr MARKS:
WENTWORTH, NEW SOUTH WALES

asked the Minister for Trade and Customs, upon notice -

  1. How many appeals against decisions of the Film Censorship Board have film importers lodged with the Censorship Appeal Board since the establishment of such board?
  2. How many appeals have been allowed, with and without conditions, by the Appeal Board, and how many have been disallowed?
Mr GULLETT:
NAT

– The answers to the honorable member’s questions are as follow : -

  1. Eighty-two, of which four have yet to be determined.

    1. Appeals Against - Rejection: Upheld, 13; dismissed, 19; total, 32. Alterations or Eliminations: Upheld, 8; dismissed, 10; total, 18. Advertising: Upheld, 14; dismissed, 14; total, 28. Totals: Upheld, 35; dismissed, 43; total, 78.

page 207

CRUDE OILIMPORTATIONS

Mr.GREGORY asked the Minister for Trade and Customs, upon notice -

What was the quantity of crude oil imported into Australia during the year 1928-29, and what was the actual or estimated quantity of petrol and kerosene distilled therefrom?

What was the quantity of enriched crude oil (that is, crude oil with an admixture of petrol) imported into Australia during the year 1928-29, and what was the actual or estimated quantity of petrol and kerosene distilled therefrom?

Was any duty imposed on enriched crude oil so imported. If not, what steps, if any, have been taken to protect the revenue?

Has crude oil which has been enriched by the addition of refined petrol been passed for entry by the Customs Department as crude oil, duty free. If so, is this in contravention of the tariff schedule as passed by Parliament?

Mr GULLETT:
NAT

– The information will be obtained as far as possible.

page 208

QUESTION

DEPARTMENTAL PURCHASES OF AUSTRALIAN PRODUCTS

Mr PARSONS:

asked the Treasurer, upon notice -

  1. . What was the total value of orders placed for or purchases made of Australian products by each Department of the Commonwealth for the year ended 30th June, 1929 ?
  2. What was the proportion of the total value of ‘ orders or purchases of Australian products in each State by each department, and what were the amounts and prices in connexion with the contracts and purchases in each State?
Dr EARLE PAGE:
CP

– Inquiry will be made into the cost of obtaining the desired information, and I will then consider the questions of the honorable member.

page 208

QUESTION

MELBOURNE HOMES OF TRANSFERRED OFFICERS

Dr MALONEY:
MELBOURNE, VICTORIA · ALP; FLP from 1931; ALP from 1936

asked the Minister for Home Affairs, upon notice -

  1. How many houses in Melbourne have been purchased by the Government from public servants transferred to Canberra?
  2. What was the total price paid?
  3. How many of these houses have been sold?
  4. What was the total amount received from the sale, and how much was paid for each house ?
  5. Will he have a statement prepared showing, without giving the situation of each property -

    1. b ) The date possession was taken of each house ;
    2. The date the house was sold and the first payment made, also the rate of interest charged on the balance of the purchase money;
    3. The date the public servants owning such houses commenced to pay rent in Canberra?
  6. What is the total amount of interest withheld from public servants who failed to purchase a house in Canberra, and how many public servants are concerned?
  7. How many of these public servants had to pay rent in the Federal Capital Territory during the twelve months following the sale of their Melbourne properties?
  8. Is it a fact that property in Canberra is at least 20 per cent. higher than in Melbourne?
Mr ABBOTT:
CP

– Inquiry will be made into the cost of obtaining the desired information, and I will then consider the questions of the honorable member.

page 208

QUESTION

CUSTOMS AND EXCISE REVENUE

Department’s Estimate for 1928-29

Mr SCULLIN:
through Mr. Theodore

asked the Minister for Trade and Customs, upon notice -

  1. What were the estimated receipts from customs and excise duties for the year 1928-29 supplied last year by his department to the Treasurer ?
  2. On what data were the figures based?
Dr EARLE PAGE:
CP

– The answers to the honorable member’s questions are as follow : - 1 and 2. Budget estimates are decisions of Cabinet and are approved by all Ministers.

page 208

QUESTION

AUSTRALIAN SOLDIERS’ REPATRIATION ACT

Mr PARSONS:

asked the Minister in charge of Repatriation, upon notice -

Whether he will take into consideration the advisability of having all amendments, additions, and executive minutes referring to repatriation matters consolidated in the Repatriation Act?

Sir NEVILLE HOWSE:
NAT

– The general secretary of the T.B. Sailors and Soldiers Association of New South Wales wrote to many, if not all, honorable members in the following terms : -

This association has for some time been considering the advisability of having all amendments, additions and executive minutes referring to repatriation matters consolidated in the Repatriation Act, and have decided to earnestly request all members to extend their sincere help in this direction, for as you are aware, some of the most vital legislation in connexion with these matters is only in the form of executive minutes or Cabinet decisions, and we feel that incorporation of such in the act itself is of paramount importance to all returned men, particularly in the future.

We recognize that such excellent work has been accomplished on our behalf by yourself and fellow members, and we would be pleased if you would reply at your earliest convenience intimating your willingness or otherwise to further our objective on the floor of the House. Thanking you in anticipation of your active support.

As Minister in charge of Repatriation, I wrote to the general secretary of the association as under -

With reference to. your letter of 10th June, and to my Cabinet colleagues, I have gone thoroughly into the matter of your requests. So that there may be a complete appreciation of the position by your association, I am forwarding to you, under separate cover, a copy of the Australian Soldiers’ Repatriation Act and Regulations, with all the amendments which have been issued to date.

It will be noted that most of the benefits (other than pension) granted to ex -members of the forces, arc covered by regulation, and such matters as the grant of medical treatment, surgical aids, artificial replacements, living allowances, are included in this category.

Outside the act and regulations it would seem that the only Cabinet decision which effects the association is the granting of a minimum pension of £2 2s. per week in respect of pulmonary tuberculosis accepted as arising out of the ex-soldier’s war service.

In view of this, I think you will agree that the position is quite clear and that no further action is called for on the part of the Government. Further, on a scrutiny of the whole of the benefits which are available, you will see that adequate provision exists for ex-service men who have suffered war damage.

I have nothing to add.

page 209

QUESTION

FEDERAL CAPITAL COMMISSION

Estimates of Expenditure

Dr MALONEY:
MELBOURNE, VICTORIA · ALP; FLP from 1931; ALP from 1936

asked the Minister for Home Affairs, upon notice -

  1. Who authorized the publication of the Estimates of the Federal Capital Commission for 1929-30 in the Canberra Times and other papers of the 8th June last?
  2. Had these Estimates been approved by the Treasurer at the time of publication?
  3. If so, is it a new practice to publish Estimates of Departments before the Treasurer presents his Budget?
  4. If not, does the Government approve of their publication, and what reductions have been made by the Treasurer since the announcement in the press?
  5. Is it a fact that the Third Commissioner of the Federal Capital Commission knew nothing of these Estimates until they appeared in the press; if so, why?
Mr ABBOTT:
CP

– The answers to the honorable member’s questions are as follow : -

  1. The Chairman of the Federal Capital Commission authorized publication of particulars of the works proposed to be undertaken.
  2. The total amount of the expenditure to be incurred by the Commission had been approved by the Treasurer.
  3. It is not the practice to publish Estimates of Departments before the Treasurer presents his Budget. The Federal Capital Commission is not, however, regarded as a “Department,” and its estimates arc not included in the Budget. The honorable member’s attention is invited to Section 22 (1) of the Seat of Government (Administration) Act.
  4. This is a matter of Government policy on which information cannot be supplied.
  5. No. The Estimates were discussed at a meeting of the Federal Capital Commission which was held prior to the publication of the various works, and were revised by the Second and Third Commissioners before submission to the Minister.

page 209

QUESTION

MIGRATION AGREEMENT

Land Settlement - Refunds of Passage Money

Mr SCULLIN:
through Mr. Theodore

asked the Prime Minister, upon notice -

  1. How many migrants have been settled on the land under the £34,000,000 agreement with Great Britain?
  2. In what States were these migrants settled?
  3. How many of these men have remained on the land?
Mr BRUCE:
NAT

– The particulars desired by the honorable member are in the possession of the State Governments, and an endeavour will be made to obtain them.

Mr. SCULLIN (through Mr. Theodore) asked the Prime Minister, upon notice -

  1. What was the total expenditure by the Commonwealth Government in connexion with passage money contributions to migrants up to 30th June, 1929?
  2. How much has been refunded, and what amount of commission has been paid to the States for collecting such refunds?
  3. What has become of the loan money refunded ?
Mr BRUCE:

– The answers to the honorable member’s questions are as follow : -

  1. The total expenditure by the Commonwealth Government, in connexion with free grants of passage money to migrants from 1st March, 1921 - the date of the inception of the joint Commonwealth and State scheme - up to 30th June, 1929, was £1,482,386. In addition, passage money, landing money and medical fees were advanced on loan to migrants by the Commonwealth, to an amount of £420,509 during the same period.
  2. The amount repaid in respect of loans to migrants from 1st March, 1921, up to 30th June, 1929, was £207,499, on which £18,263 has been paid to the several States Governments and the Salvation Army authorities by way of commission for collection.
  3. Loan moneys as refunded by migrants are credited to “Loan Fund for Works, Passage Money, Landing Money and Medical Fee Loans of Assisted Migrants.”

page 210

QUESTION

NORTH AUSTRALIA COMMISSION

Cost - Employment of White Labour

Mr NELSON:
through Mr. C. Riley

asked the Minister for Home Affairs, upon notice -

  1. What was the actual cost of the North Australia Commission to the 30th June, 1929, for the following: -

    1. salaries, travelling expenses, &c., of Commissioners;
    2. salaries, travelling expenses, &c, of all officers of the Commission;
    3. motor cars, also running expenses and maintenance of cars.
Mr ABBOTT:

– From the date of their appointment until the 30th June, 1929, the expenditure was as follows : -

  1. Members of Commission. - Salaries, £ 15,583 6s.8d.; Travelling Allowance, £1,731 7s. 5d; Other expenses, Steamer and Railway Fares, &c, £1,227 0s. 6d.
  2. Officers of Commission. - Salaries, £12,314 7s. 4d.; Travelling allowances, including fares, £822 13s l0d.
  3. New cars, excluding plant for road and water supply works. - £2,340 18s. l0d.

Running expenses and maintenance of cars, excluding cars used in road traverse work. - £2,689 14s. 8d.

Mr. NELSON (through Mr. C. Riley) asked the Minister for. Home Affairs, upon notice -

  1. Is it the custom of the North Australia Commission, when letting contracts, to insist on white labour; if not, why not?
  2. Where aborigines are employed by contractors under the Commission, what wages are paid to them?
  3. Will he issue instructions that, in future, all contractors employed by the Commission must employ white labour, and pay the basic rate for such work?
Mr ABBOTT:

– The answers are as follow : -

  1. The Commission advises that contracts and piece work are let in accordance with standard specifications, and conditions in general use. In outlying districts no absolute restriction is placed on the employment of aboriginals whose services are useful in handling horses and in performing the ordinary duties around a camp.
  2. The employment of aboriginals in North Australia is governed by the provisions of the Aboriginals Ordinance, 1918-1927, and the Regulations thereunder.
  3. This is not practicable having regard to the conditions existing in the vast areas in the Territory. The Commission must endeavour to secure the best results from tenders submitted, in respect to services required in various localities. All minor contracts let by the Commission are made on Works Department’s regular contract form. The Commission points out, that, under the terms of this agreement, the aboriginals’ interests are fully protected.

page 210

QUESTION

WAR PENSIONS

Mr D CAMERON:
BRISBANE. QLD · NAT

asked the Minister in charge of Repatriation, upon notice -

  1. How many appeals have been heard by the War Pensions Entitlement Appeal Tribunals ?
  2. How many of such appeals have been upheld ?
  3. What are the relevant statistics in connexion with such appeals to date, in the respective States?
Sir NEVILLE HOWSE:
NAT

– The answer to the honorable member’s question is as follows : -

Mr D CAMERON:
BRISBANE. QLD · NAT

asked the Minister in charge of Repatriation, upon notice -

  1. How many appeals have been heard by the War Pensions Assessment Appeal Tribunals?
  2. How many of such appeals have been upheld?
  3. What are the relevant statistics in connexion with such appeals to date, in the respective States?
Sir NEVILLE HOWSE:

– The answers to the honorable member’s questions are as follow : -

Mr D CAMERON:
BRISBANE. QLD · NAT

asked the Minister in charge of Repatriation, upon notice -

In view of the doubt existing in the minds of certain ex-soldiers as to their eligibility to appeal to the War Pensions Assessment Appeal

Tribunals for arrears of pension, will he inform theHouse what provision is made in the act for such appeals?

Sir NEVILLE HOWSE:

– This is a matter on which legal advice has been sought, and a statement will be made later.

page 211

QUESTION

ALUMINIUM COOKING UTENSILS

Dr MALONEY:
MELBOURNE, VICTORIA · ALP; FLP from 1931; ALP from 1936

asked the Minister for Health, upon notice -

  1. Is it a fact that water boiled in an aluminium kettle or pot for twenty minutes shows, on chemical test, aluminium hydroxide?
  2. Is it a fact that certain foods, when cooked in aluminium pots with sodium bicarbonate, show the effect of chemical action?
  3. Is it a fact that by this means aluminium salts are taken into the system in varying quantities?
  4. Is there even a remote possibility of salts of aluminium having deleterious effect on human life?
  5. Is the Health Department aware of adverse findings against the use of aluminium cooking utensils in’ America and other countries ?
  6. Will the Minister have this matter investigated in the interests of public health?
Sir NEVILLE HOWSE:
NAT

– The answers to the honorable member’s questions are as follow: -

  1. Water boiled in an aluminium vessel for twenty minues would probably reveal aluminium hydroxide to chemical tests, if very delicate methods were used. The amount would depend on the alkaline state of the water.
  2. No reference can be found among reliable authorities regarding chemical action on food cooked with sodium bicarbonate in aluminium pots.
  3. Apparently aluminium salts ingested with the food are not absorbed from the intestine in appreciable quantities.
  4. The quantities given off from utensils are too small to cause ill-health.
  5. Of five leading authorities, three make no mention of aluminium as a possible source of poisoning. The views of the other two have been quoted above. No views are expressed on the subject by various eminent physiologists and biochemical authorities whose works have been consulted.

page 211

QUESTION

COTTON BOUNTY

Mr GREGORY:
SWAN, WESTERN AUSTRALIA

asked the Minister for Trade and Customs, upon notice -

  1. Does the Cotton Bounty Act 1020 provide for the payment of £300,000 over a period of five years as a bounty on the manufacture of cotton yarn?
  2. What payments have been made under this provision since the act was passed?
  3. Does the act permit of the bounty being paid if less than 50 per cent. of Australiangrown cotton is used in the manufacture of cotton yarn?
  4. In how many instances and to what amount has the bounty been granted when less than 50 per cent. of Australian cotton has been used, and what is the lowest percentage of Australian cotton utilized in the manufacture of yarn upon which the bounty has been paid?
  5. How much has been paid in bounty on the manufacture. of cotton yarn?
  6. Is the granting of a bounty on cotton yarn inimical or prejudicial to the progress and development of the woollen industry ?
  7. Will the Minister use his influence to induce those profiting by the bounty on cotton yarn to assist financially the propaganda to use woollen goods?
Mr GULLETT:
NAT

– The information is being obtained.

page 211

QUESTION

IMPORTATION OF RABBITS

Mr KILLEN:
RIVERINA, NEW SOUTH WALES

asked the Minister for Trade and Customs, upon notice -

Before deciding whether he will lift the embargo on the importation of rabbits from other countries to Australia, will he take into consideration the unanimous protest of the graziers who were appointed by the New South Wales Minister of Agriculture to inquire into the matter against the proposal?

Mr GULLETT:
NAT

– Consideration will be given to protests of the graziers before a decision is made” on the matter.

Mr ATKINSON:

asked the Minister for Trade and Customs, upon notice -

  1. Is it a fact that the Government of New South Wales has sanctioned the keeping of Angora, Chinchilla and similar types of rabbits in that State for commercial purposes?
  2. If so, will he permit the introduction into Australia of rabbits of the types mentioned, by those who wish to engage in the keeping and rearing of such animals for commercial purposes ?
Mr GULLETT:

– The answers to the honorable member’s questions are as follow : -

  1. It is understood that, under a New South Wales act, licences may be issued to permit the” keeping and breeding of rabbits in captivity in the counties of Camden and Cumberland.
  2. The matter is at present under consideration.

page 211

QUESTION

REPARATION PAYMENTS

Dr MALONEY:
MELBOURNE, VICTORIA · ALP; FLP from 1931; ALP from 1936

asked the Prime

Minister, upon notice -

  1. Has the Commonwealth Government supported Mr. Snowden in his firm stand for complete reparations for Great Britain and Australia? 2, Has the Government taken any steps to resent the attempt to destroy the morale of Mr. Snowden by assuring him of Australia’s support in this matter?
  2. Will the Government insist upon the rights created under the Dawes’ plan?
Mr BRUCE:
NAT

– The answers to the honorable member’s questions are as follow : -

  1. The Government has communicated with His Majesty’s Government in Great Britain urging that every effort should be made to prevent the present basis ‘of the distribution of reparation annuities being modified in any way which would be disadvantageous to them
  2. No special steps in this sense are considered necessary.
  3. The Government will take every course possible to protect its rights in respect of reparation payments.

page 212

QUESTION

PETROL DUTY

Mr HILL:
ECHUCA, VICTORIA

asked the Minister for Trade and Customs, upon notice -

  1. Will he make a statement setting out the position regarding -rebates on petrol used in connexion with tractors on the farm, also stationary engines using petrol on and off farms, and on petrol used for purposes other than that used on the roads?
  2. Have any claims for rebate been submitted?
  3. If so, have these claims been paid, and what is the total amount?
  4. To whom should claims be addressed?
  5. Are claim forms available; if so, where?
Mr GULLETT:
NAT

– The information is being obtained.

page 212

QUESTION

DUTY ON LADIES’ GARMENTS

Mr FENTON:
MARIBYRNONG, VICTORIA

asked the Minister for Trade and Customs, upon notice -

  1. Is it a fact that ladies’ garments are being sold in England and on the Continent at greatly discounted prices (50 per cent, or more discount, which is greatly under their cost of production) to Australian wholesale and retail importers, to the detriment of our Australian women’s clothing industry and our local woollen mills?
  2. If so, will he apply the provisions of the Australian Industries Preservation Act to deal effectively with this serious dumping, and so protect our local manufacturers, who pay a very high protective rate of duty on their raw materials used to manufacture identical garments ?
  3. Is it a fact that the Australian Industries Preservation Act is not being uniformly administered throughout the Commonwealth, as the Melbourne customs officials have collected some thousands of pounds in “ dumping “ duties on these discounted garments, whilst other capital cities, Sydney in particular, have imported identical garments with practically no dumping duty being collected?
Mr GULLETT:
NAT

– The answers to the honorable member’s questions are as follow : - 1 and 2. It is very difficult to prove dumping within the meaning of the Customs Tariff (Industries Preservation) Act; but many inquiries for that purpose are made with regard to women’s clothing, and, when possible, the provisions of the act are applied. In some cases it is necessary to refer the matter for inquiry in London, or on the Continent.

  1. Uniform (instructions are in effect in all States, and in every State continuous effort is made to keep a check on “ end of season “ goods in relation to the Industries Preservation Act.

page 212

QUESTION

AERIAL TRANSPORT AND INDUSTRIAL DISPUTES

Mr WEST:
EAST SYDNEY, NEW SOUTH WALES

asked the Prime Minister, upon notice -

  1. Has his attention been drawn to the fact that the Prime Minister of Great Britain (Mr. Ramsay MacDonald) used aerial transport in order to quickly intercede in the cotton dispute, brought about through an attempt to reduce wages?
  2. Will he, in view of the present crisis in our civilization, adopt a Christian attitude to bring about a resumption of employment- by a settlement of the present differences in Australian industries?
Mr BRUCE:
NAT

– The answers to the honorable member’s questions are as follow : -

  1. I have seen a reference to the use by the Prime Minister of Great Britain, recently, of aerial transport for the purpose of meeting members of the employers’ negotiating committee in connexion with the cotton trade dispute in England.
  2. Every effort has been, and is being made, to bring about a settlement of the present differences in Australian industries.

page 212

QUESTION

ROYAL AUSTRALIAN NAVY

Mr FENTON:

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

  1. How many men (o) born in Australia, and (ft) not born in Australia, are employed in the Australian Navy, distinguishing in both classes between officers, warrant officers, petty officers and men?
  2. How many of the two classes and ranks, respectively, have ceased to be employed since 1st May, 1929?
Sir NEVILLE HOWSE:
NAT

– The answers to the honorable member’s questions are as follow: -

  1. Statistics as to place of birth have not been compiled, and are not readily available; but the numbers now serving in the Royal Australian Navy on loan from the Royal Navy are -
  1. Since 1st May, 1929, the discharges of the following have been authorized: -
Dr MALONEY:
MELBOURNE, VICTORIA · ALP; FLP from 1931; ALP from 1936

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

  1. How many Royal Navy pensioners are at present serving in the Commonwealth Naval Forces ?
  2. What is the amount of Royal Navy pension received by each?
  3. What is the amount of salary paid by the Commonwealth Government to each in respect of the positions now occupied?
  4. What steps are being taken to obtain relief for these pensioners at the expiration of their respective periods of engagement?
  5. How many (a) capital ships, (b) seaplane carriers, and (c) submarines are there in the Royal Australian Navy?
  6. What is the total annual remuneration received by (a) the First Naval Member, (b) the Rear Admiral Commanding Squadron, and (c) the Engineer Rear Admiral.
Sir NEVILLE HOWSE:

– Inquiries are being made, and a reply will be furnished to the honorable member as soon as possible.

page 213

QUESTION

LOSS OF AEROPLANES

Mr MARKS:

asked the Prime Minister, upon notice -

  1. What was the cost to the Government of the search for the missing aeroplanes “ Southern Cross “ and “ Kookaburra “, including the loss of R.A.A.F. search machines?
  2. What was the cost to the Government of the air inquiry into circumstances surrounding the loss of these machines?
Mr BRUCE:
NAT

– The information is being obtained.

page 213

QUESTION

TASMANIAN MAIL SERVICES

Mr ATKINSON:

asked the PostmasterGeneral, upon notice -

  1. What stage has been reached in the negotiations between the Government and Tasmanian Steamers Limited with respect to the Tasmanian mail (shipping) services?
  2. If the Government has taken any definite steps, and, if so, what steps to obtain an offer of a separate tender from the abovenamed company for the placing of a new steamer in the Melbourne-Burnie-Devonport running?
Mr GIBSON:
Postmaster-General · CORANGAMITE, VICTORIA · CP

– The answers to the honorable member’s questions are as follow: -

  1. Tenders were invited last year for an improved mail service between Melbourne and Tasmania on the following basis: -

Service No. 1 -

Route. - Between Melbourne (or Port Melbourne ) and a point on the river Tamar near Rosevears.

Frequency. - Thrice weekly in summer and twice weekly in winter.

Speed of Vessel. - The average speed to be maintained by the vessel to be such as to enable the trip each way to be performed within sixteen hours.

Time-table. - Leave Melbourne 5 p.m.; arrive Tamar port 8.30 a.m. Leave Tamar port 4 p.m.; arrive Melbourne 8 a.m.

Service No. 2 -

Route. - Between Melbourne (or Port Melbourne), Burnie, and Devonport.

Frequency. - Thrice weekly in summer and twice weekly in winter.

Speed of Vessel. - The average speed to be maintained by the vessel to be such as to enable the trip each way to be performed in fourteen hours.

Time-table. - Leave Melbourne 4 p.m.; arrive Burnie6 a.m.; Leave Burnie 8 p.m. ; arrive Melbourne 10 a.m.

The only tender received provided for an annual subsidy of £96,000 and this was not accepted.

  1. The Government has taken steps to obtain a separate offer for the improved MelbourneBurnie service, and the subsidy asked for is being considered by the Government.

page 213

QUESTION

WESTERN AUSTRALIAN CENTENARY

Mr A GREEN:
KALGOORLIE, WESTERN AUSTRALIA · ALP; FLP from 1931; ALP from 1936

asked the Prime Minister, upon notice -

With regard to the question on the 12th March last by the honorable member for Kalgoorlie, is the Prime Minister yet in a position to say if he is prepared to ask Parliament to adjourn for three weeks during September, so that Federal members may be able to attend the Western Australian centenary celebrations?

Mr BRUCE:
NAT

– The Commonwealth Government recognizes the importance of the occasion to which the honorable member refers, and it is my intention shortly to make an announcement as to the Government’s proposals in regard to participation in the celebrations.

Mr MANN:
PERTH, WESTERN AUSTRALIA

asked the Prime Minister, upon notice -

  1. Whether any suggestion has been made to the Government that a short adjournment of this House should be made to enable honorable members to visit Western Australia in order to participate in the State Centenary Celebrations in September-October next?
  2. If so, is the Government prepared to favorably consider the suggestion?
  3. Have arrangements been definitely made for the visit of representative units of the fleet to Western Australia in connexion with these celebrations ?
Mr BRUCE:

– The answers are: -

  1. Yes. 2 and 3. I would refer the honorable member to the answer which I have just given to a question by the honorable member for Kalgoorlie on the same subject.

page 214

QUESTION

COMMONWEALTH PROPERTY AND LOCAL RATES

Mr MACKAY:
LILLEY, QUEENSLAND

asked the Minister for Works and Railways, upon notice -

Whether it is a fact that Commonwealth property, which is leased to private individuals or used for revenue-producing purposes, is not liable for rates and taxes levied by local government authorities ?

Mr GIBSON:
CP

– Yes. The matter is determined by section 114 of the Commonwealth Constitution Act.

page 214

QUESTION

WIRELESS BROADCASTING

Mr A GREEN:
KALGOORLIE, WESTERN AUSTRALIA · ALP; FLP from 1931; ALP from 1936

asked the PostmasterGeneral, upon notice -

  1. Is he in a position to make a statement with regard to the localities in which the broadcasting stations will be erected in Australia by the Government?
  2. If the whole of the programme has not yet been determined, has a decision been arrived at with regard to Western Australia?
Mr GIBSON:
CP

– The matter is under consideration, but a decision has not yet been arrived at.

page 214

QUESTION

IMPERIAL ECONOMIC CONFERENCE

Mr MANN:

asked the Prime Minister, upon notice -

Have definite arrangements been made for the holding of an imperial economic conference in London next year, to consider empire trade relations ?

Mr BRUCE:
NAT

– Definite arrangements for the holding of an imperial economic conference have not yet been made.

page 214

QUESTION

WESTERN AUSTRALIAN AIRWAYS

Mr A GREEN:
KALGOORLIE, WESTERN AUSTRALIA · ALP; FLP from 1931; ALP from 1936

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

  1. Have the landing grounds for the airways extension from Derby to Wyndham yet been commenced?
  2. If not, is it a fact that if the work is not proceeded with before December of this year, the tropical wet season will prevent the work from being taken in hand for several months ?
  3. On what date is it anticipated that the service will be in operation?
Sir NEVILLE HOWSE:
NAT

– The answers are -

  1. Yes.
  2. See answer to 1.
  3. No specific date can as yet be given.

page 214

QUESTION

COMPENSATION TO MRS. LEIGHTON

Mr MANN:

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

Whether arrangements have been concluded for paying compensation to Mrs. Leighton, of Perth, for the death of her son, who was shot during military rifle practice in the Drill Hall, Perth, some three or four months ago?

Sir NEVILLE HOWSE:
NAT

– Finality has not yet been reached upon the question of compensation to Mrs. Leighton. The extensive ‘ inquiries necessary have, however, been completed, and it is hoped that a decision will shortly be obtained.

page 214

QUESTION

LA PEROUSE GOLF CLUB

Mr E RILEY:
SOUTH SYDNEY, NEW SOUTH WALES · ALP

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

  1. How much land has been leased to the golf club at La Perouse, Sydney, and what are the conditions and the term of the lease?
  2. Has there been a further lease of extra land to the golf club, which prevents the public from getting access to the foreshores of Botany Bay round to Yarra Bay?
  3. What is the total revenue received from the golf club, and the total number of acres leased ?
  4. Has the club the right to prevent private citizens from having access to the land which has been leased ?
Sir NEVILLE HOWSE:
NAT

– The answers are -

This matter is dealt with by the Department of Works, and I accordingly furnish the following replies to the honorable member’s questions : -

292 acres. Originally 125 acres were leased for twenty years from 1st January, 1926 at £265 per annum; subsequently an additional area of 167 acres was leased at £150 per annum. The two leases were thereupon consolidated for the term of 1st September, 1928 to 31st December, 1945, the date of expiry of the first-mentioned leases. The lease provides that the land shall be used as a golf links and tennis courts only, and there is a proviso in the lease that the land or any portion thereof may be taken by the Commonwealth at any time if it be required for a national purpose connected with defence: otherwise the terms of the lease are those usually subsisting between lessor and lessee in such cases.

There has been no further lease since the 1st September, 1928.

The annual rental is £415, and the area leased is approximately 292 acres.

The area covered by this lease was included in the reserve acquired by the Commonwealth for defence purposes, since when it has not been open to the general public.

page 215

QUESTION

PORT AUGUSTARAILWAY WORKSHOPS

Mr LACEY:
GREY, SOUTH AUSTRALIA

asked the Minister for Markets and Transport, upon notice -

  1. Has a tender been accepted for electric overhead travelling cranes for Port Augusta workshops ?
  2. If so, what was the- amount of the accepted tender?
  3. Does the accepted tender include customs duty and erection costs?
  4. What was the lowest tender of Australian manufacture?
Mr PATERSON:
Minister for Markets and Transport · GIPPSLAND, VICTORIA · CP

– The answers are-

  1. Yes.
  2. £8,074 5s.
  3. It includes erection charges, but not customs duty.
  4. There was no tender for material wholly of Australian manufacture. The Perry Engineering Co. submitted a tender which includes certain imported parts.

After the addition of customs duty the British tender was still £3,000 lower (equal to 30 per cent.) than that lodged by the Perry Engineering Co.

page 215

QUESTION

RIVERSTONE POST OFFICE

Mr BOWDEN:
through Mr. J. Francis

asked the Postmaster-General, upon notice -

  1. Who is the lessor of the Riverstone Post Office?
  2. What is the amount of rent paid?
  3. Are there any conditions of repair or other conditions in the lease requiring expenditure of money by the Commonwealth?
  4. What is the term of the lease and when does it expire?
Mr GIBSON:
CP

– The answers are -

  1. The New South Wales Government railways.
  2. £38 per annum.
  3. The Commonwealth is required to keep the interior of the premises in a reasonable condition of repair.
  4. Two years. The existing lease expires on the 30th June, 1931.

page 215

QUESTION

FEDERAL CAPITALTERRITORY

Cost of Roadways - School C hildren’ s Bus Fares.

Dr MALONEY:
MELBOURNE, VICTORIA · ALP; FLP from 1931; ALP from 1936

asked the Minister for Home Affairs, upon notice -

  1. What is the approximate number of miles of roadway in the Federal Capital Territory?
  2. What has been the approximate cost of these roads ?
  3. What is the estimated annual cost of their upkeep?
  4. Is this cost included in the rates paid by the citizens of the Territory?
Mr ABBOTT:
CP

– The answers are-

  1. £810,000.
  2. Average for the past three years £22,880 ; cost 1928-29, £21,066 (excluding interest and sinking fund charges).
  3. Only a small proportion of the maintenance cost is met by revenue received from rates, the total general rate for 1928-29, which contributed to many other services besides road maintenance, being £5,324.
Dr MALONEY:
MELBOURNE, VICTORIA · ALP; FLP from 1931; ALP from 1936

asked the Minister for Home Affairs, upon notice -

With reference to his promise on the 14th February last (Hansard, page 252) that he would give consideration to the question of allowing children to travel to school by omnibus free of charge, will he state whether this matter has yet been decided; if so, with what result ?

Mr ABBOTT:

– Full consideration was given to this matter with the result that it was decided that the small charge being made was justified.

page 216

QUESTION

PUBLIC SERVICE

Canberra Allowance

Dr MALONEY:
MELBOURNE, VICTORIA · ALP; FLP from 1931; ALP from 1936

asked the Prime Minister, upon notice -

Has any decision yet been arrived at in regard to the payment of an extra allowance to public servants residing in Canberra to cover rates payable by them? If not, when is it expected that relief will be given?

Mr BRUCE:
NAT

– The Government has given careful consideration to the question of extending the scope of the allowance payable under Public Service Regulation 97b to public servants resident in Canberra, but regrets that it is unable to see its way to increase the allowance.

page 216

QUESTION

POSTAL DEPARTMENT

South Australian Officers

Mr MAKIN:

asked the Prime Minister, upon notice -

  1. Has a recommendation been made to the Public Service Board that the duties attached to certain clerical positions in the engineering branch of the Postmaster-General’s Department in South Australia be re-organized?
  2. If so, will he state whether or when such re-organization will be approved?
Mr BRUCE:
NAT

– The information . is being obtained.

page 216

QUESTION

QUEENSLAND AERIAL SERVICE

New Air Port

Mr J FRANCIS:
MORETON, QUEENSLAND · NAT; UAP from 1931; LP from 1944

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

  1. Whether the Government has completed the negotiations for the purchase of an area of land for a new air port for Queensland in or near the Cooper’s Plains district?

    1. What is the area of land to be acquired, and what is its location?
    2. Has provision been made this financial year for the construction of hangars and the preparation of landing grounds?
Sir NEVILLE HOWSE:

– Inquiries will be made and a reply will be furnished to the honorable member as soon “as possible.

page 216

QUESTION

H.M.A.S. ALBATROSS

Dr MALONEY:
MELBOURNE, VICTORIA · ALP; FLP from 1931; ALP from 1936

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

  1. What was the total cost of the recent tour of New Guinea and the Pacific Islands by H.M.A.S. Albatross?
  2. Is the expenditure incurred on this voyage met by the Defence Department; if not, by whom is it paid?
Sir NEVILLE HOWSE:
NAT

– A reply will be furnished to the honorable member as early as possible.

page 216

QUESTION

DEVELOPMENT AND MIGRATION COMMISSION

Dr MALONEY:
MELBOURNE, VICTORIA · ALP; FLP from 1931; ALP from 1936

asked the Prime Minister, upon notice -

  1. What ‘ is the total amount of salary paid to each member of the Development and Migration Commission and what was ‘the amount of travelling expenses (including train, steamer, and car fares) incurred by each member during 1927-28 and 1928-29?
  2. What rate of travelling allowance is paid to each member of this Commission?
Mr BRUCE:
NAT

– The information is being obtained.

page 216

QUESTION

WOOD TAINT IN BUTTER

Mr MACKAY:

asked the Minister for Markets and Transport, upon notice -

Whether the inquiry into the complaints of wood taint in butter arriving in London has been concluded; if so, will he state what action has been taken in the matter?

Mr PATERSON:
CP

– Inquiries into this question . are not yet complete.

page 216

QUESTION

MARBLE INDUSTRY

Mr FORDE:
CAPRICORNIA, QUEENSLAND

asked the Minister for Trade and Customs, upon notice -

  1. When was the matter of protection for the Australian marble industry referred to the Tariff Board for investigation and report?
  2. Has the Tariff Board commenced its inquiry; if not, when will it be commenced?
  3. Will he request the Tariff Board to consider the advisability of making a trip to the marble quarries in order to obtain first-hand evidence from those interested?
Mr GULLETT:
NAT

– The information is being obtained.

page 216

QUESTION

ALSATIAN DOGS

Mr MACKAY:

asked the Minister for Trade and Customs, upon notice -

  1. Whether the danger of serious losses to the sheep-breeders of Australia by the continued importation of Alsatian dogs, and the risk of their mating with the dingo has been brought under the notice of the Minister?
  2. Is it a fact that the Minister for Agriculture in Queensland (the Honorable H. F. Walker) has promised to take steps to provide for the sterilization of Alsatian dogs in order to protect the interests of the wool-growers in that State?
Mr GULLETT:
NAT

– The answers are:-

  1. Yes. A proclamation prohibiting the importation of these dogs for a period of five years was issued on 13th June, 1929.
  2. I have no information on the subject.

page 217

QUESTION

MISSING CABINET DOCUMENT

Publication of Extracts

Dr MALONEY:
MELBOURNE, VICTORIA · ALP; FLP from 1931; ALP from 1936

asked the Prime Minister, upon notice -

  1. Is it a fact that a Government messenger was recently prosecuted under the Crimes Act for having a Cabinet document in his possession ?
  2. Were the contents of this document ever published or wrongly disclosed by the officer concerned ?
  3. Was the officer dismissed from the Public Service ?
Mr BRUCE:
NAT

– The answers are:-

  1. A Commonwealth officer was charged with unlawfully retaining in his possession a document which he hud obtained owing to his position as a person holding office under the Commonwealth whenhe had no right to retain it.
  2. The , officer was not charged with this offence, and I do not know whether the contents were published or disclosed as suggested.
  3. The officer referred to was convicted of the charge mentioned in my answer to (1) and also of another charge brought against him at the same time, and was subsequently dismissed from the Public Service.
Dr MALONEY:
MELBOURNE, VICTORIA · ALP; FLP from 1931; ALP from 1936

asked the Prime Minister, upon notice -

  1. Is it a fact that a certain Cabinet document was published in the Canberra Times some months ago?
  2. Is it a fact that the Commonwealth police raided several premises in connexion with the publication; if so, whose premises?
  3. Was the published document found; if so, where?
  4. Were the person or persons who had possession of the document, or’ who published the document, prosecuted; if not, was any action taken?
Mr BRUCE:

– The replies are:-

  1. Extracts from a document prepared for Cabinet were published in the newspaper mentioned.
  2. Inquiries were made into the matter, in the course of which a search was made of the premises of a Commonwealth officer employed in the branch of the Prime Minister’s Department in. which copies of the document were made.
  3. A copy of the document was produced by the editor of the Canberra Times.
  4. No action by way of prosecution has been taken.

page 217

QUESTION

LORD HOWE ISLAND

Mail Contract

Mr WEST:

asked the Prime Minister, upon notice -

  1. Will he inform the House of the amount of the subsidy paid to Burns, Philp and Co. Ltd., in regard to the new mail contract to Lord Howe Island, and what is the increase over the subsidy provided by the previous contract?
  2. Is it a fact that since the new contract came into operation large increases have been made in fares and freights?
  3. Has any provision been made in the new contract for a vessel to replace the s.s. Makambo, which has been declared unlit for the service?
Mr BRUCE:
NAT

– The answers are: -

  1. A subsidy of £55,000 per annum is payable under the new agreement in respect of the Pacific Islands mail service as a whole, no specific amount being allocated to any section of the service. There has been no increase over the amount payable under the previous agreement.
  2. There has been an increase in fares due to increased running costs. There has, however, been no increase in freights. On the contrary, there have been decreases in respect to some items.
  3. The new agreement provides for the replacement of the s.s.. Makambo by a more suitable vessel within a period of three years. In the meantime an additional vessel, the s.s. Marsina, is making one call from Norfolk Island to Sydney every six weeks.

page 217

QUESTION

SOUTH TASMANIAN QUARANTINE STATION

Mr McWILLIAMS:
FRANKLIN, TASMANIA

asked the Minister for Health, upon notice -

  1. Whether his attention has been directed to the fact that the wharf at the Quarantine Station, Police Point, South Tasmania, has been destroyed, with the result that imported cattle have to swim ashore to their great detriment, especially in the case of dairy cows ?
  2. Will he cause an inquiry to be held forthwith into this urgent matter?
Sir NEVILLE HOWSE:
NAT

– The answers are : - 1 and 2. The wharf at the Quarantine Station was destroyed some years ago by storms. No cattle have since been imported from overseas, and the prospects of such importation appear remote.

page 217

QUESTION

EXTERNAL AFFAIRS

Appointment of Additional Officers

Dr MALONEY:
MELBOURNE, VICTORIA · ALP; FLP from 1931; ALP from 1936

asked the Prime Minister, upon notice -

  1. What is the reason for the appointment of two additional permanent officers in the External Affairs branch of the Prime Minister’s Department?
  2. What are the salaries attached to these positions ?
Mr BRUCE:
NAT

– The answers are: -

  1. The increasing volume of work and the need for additional assistance due to the change in dominion status and other causes. Up to the present this has been met by temporary arrangements, which will terminate whenthe new appointments are made.
  2. Senior clerk, £570-£672; clerk, £408-£510.

page 218

QUESTION

WENTWORTH WEIR AND LOCK

Mr KILLEN:

asked the Minister for Works and Railways, upon notice -

  1. What was the date of starting the construction of lock and weir No. 10 at Wentworth ?
  2. What was the date of completion?
  3. What was the original estimate of the cost of this work?
  4. Was there a later estimate?
  5. Were the estimates amended; if so, when, and what were the amounts of amended estimates, if any?
  6. What is the total cost of this weir and lock, including the usual allowance for depreciation of plant used in its construction?
  7. What is the average cost of each weir and lock constructed by South Australia, and the average time taken for such construction?
  8. What is the reason for the increased cost of weir and lock No. 10 as compared with similar works carried out by South Australia?
Mr GIBSON:
CP

– The information is being obtained for the honorable member.

page 218

QUESTION

COTTON INDUSTRY

Mr FORDE:

asked the Minister for Trade and Customs, upon notice -

When will he make a statement setting out the Government’s ‘future policy in regard to the cotton industry.

Mr GULLETT:
NAT

– At the earliest possible opportunity.

page 218

MARITIME INDUSTRIES BILL

Motion (By Mr. Bruce) proposed -

That he have leave to bring in a bill for an act relating to industrial matters in relation to trade and commerce with other countries and among the States, and for other purposes.

Mr THEODORE:
Dalley

.- Does not the Treasurer intend to indicate the contents of this measure, and the subject with which it deals? It may be assumed, of course, that it proposes to give effect to the proposal of the Government to evacuate the industrial field by the repeal of the existing arbitration laws. The motion, however, does not inform us whether that is the fact. I know that at this stage I should be entirely out of order if I were to discuss the merits of any proposed legislation of that character; but, considering the importance of the matter, honorable members are entitled to a brief preliminary statement outlining the proposal.

Mr COLEMAN:
Reid

.- In view of the widespread public interest that has been aroused in regard to the Government’s policy generally with respect to arbitration, some outline should be given, not only of this proposed bill, but also of the supplementary proposals relating to the Industrial Peace Act, and the Public Service Arbitration Act. A good deal of confusion, doubt, and misgiving exists, and should be dissipated.

Mr BRUCE:
Prime Minister and Minister for External Affairs · Flinders · NAT

– The measure which the Government is asking for leave to introduce provides the machinery under which it it proposed to establish the industrial regulation of the shipping and waterside industries, control over, which the Government have indicated they will retain, in view of the full powers to legislate with respect to those industries, that they possess under the trade and commerce power conferred by the Constitution. The measure also proposes to give effect to the policy of the Government in relation to the evacuation of the field of industrial regulation of other industries. It is not my intention to ask for leave to proceed to the second-reading stage to-day. Upon the leave that is sought being granted, the bill will be brought in and formally read a first time. I propose to give a full explanation of the measure to-morrow, when I intend to move that it be read a second time.

Question resolved in theaffirmative.

Bill presented by Mr. Bruce, and read a first time.

page 218

PAPERS

The following papers were presented : –

Air Inquiry Committee in connexion with the flights of Aeroplanes “ Southern Cross “ and “ Kookaburra “, March-April, 1929- Report.

Commonwealth and State Ministers - Conference held at Canberra, May, 1929 - Proceedings and Decisions.

Power Development in Australia - Report by Alex. J. Gibson, M.E., M.Inst. C.E., M.I.E. Aust.

Shipping - Report of the Overseas Shipping Conference convened by the Right Honorable the Prime Minister of Australia.

Soldier Settlement - Report by Mr. Justice Pike on losses due to Soldier Settlement.

South Australia - Report, with Appendices, of the Royal Commission on the Finances of South Australia as affected by Federation.

page 219

ESTIMATES, 1929-80

Messages reported transmitting estimates of revenue and expenditure and estimates of expenditure for additions, new works, buildings, &c., for the year ending 30th June, 1930, and recommending appropriations accordingly.

Ordered to be printed and referred to Committee of Supply.

page 219

BUDGET, 1929-30

In Committee of Supply

Dr EARLE PAGE:
Treasurer · Cowper · CP

– The seventh consecutive Budget, which I have the privilege of submitting to this Committee is historic, in that it embodies for the first time the completed scheme of the financial agreement made between the Commonwealth and the States. That scheme is based on the broad foundation of the consolidation and redemption of the Commonwealth and State debts.

All existing debts of the Commonwealth and the States and all new loans raised are now subject to definite sinking fund obligations. The new sinking fund for Commonwealth debts has operated for six years, and the new sinking fund for State debts for two years. In the six-year period more than £31,000,000 - or an average of more than £5,000,000 per annum - has been provided from Commonwealth revenue and like sources for the redemption of the Commonwealth debt. In the two-year period an additional £1,752,000 has been provided from Commonwealth revenue for the redemption of State loans. The annual sum now payable from Commonwealth revenue and cognate sources for debt redemption exceeds £6,000,000. These are facts of great importance in any study of the financial position of the Commonwealth.

The population of a country is its greatest asset. The population of the Commonwealth has increased in the last seven years from 5,510,000 to 6,337,000, an increase of 827,000, or 15 per cent., and by more than 1,000,000 in the last nine years.

The overseas trade has moved in the following manner during the last three years : -

An adverse balance of £19,821,411 in our visible overseas trade in 1926-27 has been converted into a balance of £1,152,000 in Australia’s favour in 1928-29, or an improvement of £20,973,411.

The production of the Commonwealth has increased in the last seven years from £379,382,000 to £442,000,000, an increase of £62,618,000, the figures for the respective years being: -

Bank deposits throw further light on our economic position. The average deposits in trading banks, including the Commonwealth Bank, for the June quarter, 1929, totalled £328,600,000, an increase of £76,000,000 since 1922.

The thrift of our people is perhaps the most gratifying feature of our economic position. Savings Bank deposits have risen from £162,275,000 in 1922 to £215,188,000 in 1928, an increase of £52,913,000. From 1923 to 1927, life insurance policies have increased by 70,823 to a total of 866,710, whilst the sum insured in the later year was £262,276,366, an increase of £52,226,421. In industrial insurance the figures are equally encouraging. The number of policies in 1927 totalled 1,481,044, an increase of 337,040 over 1923, whilst the sum insured increased by £20,723,750 to a total of £60,732,865. In life and industrial insurance combined, the sum insured in 1927 was £323,009,231, an increase in four years of £72,950,171.

The thrift of the people is also demonstrated in the ownership of their own homes. The 1911 census disclosed that 52.22 per cent. of private dwellings were either owned or were being purchased by the occupants. At the 1921 census this percentage had increased to 56.32, and it may be confidently expected, with the additional financial accommodation being granted by house building authorities, that the 1931 census will disclose a further large increase in the percentage.

An examination of the public debt transactions of the Commonwealth discloses a reduction of £6 12s. 5d. in the debt per head of population in the last seven years and a progressive change in the character of the debt. In this period the dead weight “war debt was reduced by £45,000,000, while the works ‘ debt was increased by £58,000,000, or a net increase of £13,000,000 in seven years.

Commonwealth taxation, despite increased social obligations undertaken by the Government and greater assistance rendered to the States, which together absorbed £9,562,000 more than the corresponding obligations in 1921-22, represents a smaller percentage of the total production than in 1921-22, and remains practically stationary per head. In 1921-22 the total Commonwealth taxation was £9 0s. 4d. per head. Last year it was £8 17s. 8d. per head.

In 1921-22 the total production was £344,302,000, and the total Commonwealth taxation was £49,679,000. In 1928-29 production totalled £442,000,000 and taxation £56,303,000. The percentage of taxation to production was 14.42 in 1921-22 and in 1928-29 was 12.74.

Despite these favorable factors, Australia is faced with two main difficultiesfirst, a decline in the value of her production owing to falling prices of staple commodities, and secondly, a danger of an actual diminution in production owing to industrial disturbances. The strength of the nation and the present standard of living can be maintained only by increased production resulting from improved methods of working and industrial peace.

The Past Year

The estimated and actual transactions of the Consolidated Revenue Fund for the year 1928-29 are as follows : -

Revenue, 1928-29

The failure of the revenue collections to reach the budget estimate was whollydue to the decrease in the returns from customs and excise duties, which were £2,241,429 below the Estimates. Direct taxation yielded £134,918 more than was estimated, whilst the other receipts fell short by £83,719, the net result being a shortage of actual receipts of £2,190,230.

When the budget was introduced justification of the customs and excise estimate was found in past experiences and in the prospects of a bountiful harvest and an increased wool clip. Past experiences had shown that after temporary depressions, resulting in a drop in customs and excise revenue in 1917-18 and 1921-22, the succeeding year in each instance disclosed a full recovery in the revenue. “ Whilst it was reasonable therefore to anticipate the receipt in 1928-29 of collections equal to those of 1926-27, the budget allowed for a decline in 1928-29 of £252,000 notwithstanding that in the meantime additional duties estimated to yield £500,000 had been imposed upon motor chassis.

A revival of trade was reflected in increased customs and excise receipts for October, November and December. In fact, the receipts for that quarter, £11,448,834, were the greatest in the history of the Commonwealth; the next highest being in 1926-27, when £11,234,270 was collected in the corresponding quarter. This revival was checked, however, by the stoppage of work in the coal and timber industries, by adverse seasonal influences in some portions of Australia and uncertainty as to future prices .of our commodities. The shortage in receipts mainly occurred under the tariff divisions for apparel and textiles, metals and machinery, hides -and leather and rubber, and was partly accounted for by the increased production and use of Australian materials, particularly rubber goods.

Expenditure from Revenue, 1928-29.

The estimated revenue, which depends on factors the Government cannot control, differed by 3£ per cent, from the actual, whilst expenditure only differed by onethird of 1 per cent. This was due to the most rigid scrutiny of the accounts before presentation to Parliament and to the exercise of tho most continuous oversight of expenditure by Ministers and heads of departments throughout the year. On the votes for the departments and for Defence this resulted in an actual decrease in expenditure. The increases occurred mainly in old-age and war pensions. Claims for these are undoubtedly affected by a time of depression which in itself makes old folk eligible for old-age pensions who in times of prosperity maintain themselves.

The chief increase above the estimate was war pensions, £145,774.

Invalid and old-age pensions reached the huge sum of £10,124,239, being £124,239 above the amount estimated. “War and repatriation services, payments to States, invalid and old-age pensions and other statutory payments last year absorbed £54,676,961, which was £13,618,390 in excess of the customs and excise revenue, and represented 85 per cent, of the total expenditure.

The scope for other savings is thus limited to 15 per cent, of the total expenditure, but the Government’s policy of strict economy has effected savings wherever possible. In Defence Services ti saving of £119,278 was effected. A saving was also effected in the cost of administration of departments. For the year 1927- 28 the cost of these services was £3,081,253. The budget estimate for 1928- 29 reduced this to £3,025,962. The actual expenditure proved to be £2,987,306, or £38,656 less than the estimate and £93,947 less than the expenditure of the previous year. Despite the normal increases which might be expected to follow increase of. population and an extension of services, departmental expenditure has decreased.

The cost of departmental expenditure per head of population, which surely is a test of sound administration, has shown a steady decline during the life of the present Government. In 1921-22 the cost per head was 10s. 7d. ; in 1928-29, 9s. 5¼d. This consistent record of wise and prudent control of public expenditure challenges comparison and speaks for itself. It has been accomplished despite the provision of increased public facilities and services and the constant increases of salaries by awards and regulations. It has been effected . by eliminating waste wherever possible and especially the waste of Commonwealth and State duplication, of which a typical instance is the amalgamation of Commonwealth and State income tax collection.

In business undertakings, the results disclosed a surplus on the post office of £158,328, as compared with the budget estimate of a surplus of £107,710, or an improvement of £50,618. Although on the revenue side there was a shortage of £148,300 compared with the budget estimate, due to conditions being less buoyant than anticipated, savings in expenditure amounting to £198,918 more than offset this shortage.

Repayments of £99,756 reduced the net loan expenditure in 1928-29 to £7,635,347, which was 15 per cent, below the estimate.

The moneys lent to the Federal Capital Commission by the Treasury in 1928- 29 totalled £555,000.

The loans raised by the Commonwealth for the States for development and migration totalled £1,352,573. This expenditure is included in the State loan programmes.

Debt Redemption

On 17th November 1928, the electors, by a three to one majority, approved an amendment of the Constitution to enable the Commonwealth to deal effectively with State debts. Subsequently the Commonwealth Parliament, in the exercise of its new powers, validated an agreement between the Commonwealth and the States, in which provision was made for the management of State debts, the control of borrowing, and the provision of sinking funds. The Commonwealth took over all State debts from- the 1st July, 1929, assuming as between the Commonwealth and the States the liability to the bondholders.

New sinking funds have been established, as the agreement requires, to provide for the redemption, within a period of 58 years from 30th June, 1927, of the State debts existing at that date, and for the redemption over a period of 53 years of each new loan raised for the States after 30th June, 1927.

As the National Debt Sinking Fund Act of 1923 had already made suitable provision for the redemption of Commonwealth debts, we now have, for the first time in the history of Australia, adequate and properly safeguarded sinking funds covering the full amount of the debts of the Commonwealth and the States.

Commonwealth Debt Redemption

The amount applied towards the redemption of Commonwealth debt in 1928-29, was £6,230,708, the details being:

This amount is equivalent to £1 13s. 5d. for each £100 of the Commonwealth debt existing at the beginning of the financial year.

In addition to the regular contributions provided for under the sinking fund law, the Commonwealth has, during the last six years, redeemed £7,415,755 of debt from surplus revenue and has thereby effected a permanent annual saving of about £400,000 in interest.

State Debt Redemption

The amounts made available through the National Debt Sinking Fund for the redemption of State debts in 1928-29 were -

These moneys represent the contributions under the Financial Agreement for the two years 1927-28 and 1928-29. The moneys for 1927-28 did not come into the Sinking Fund until 1928-29, because of delay in the ratification of the agreement in one of the States.

Total Debt Redemption

Combining the Commonwealth and States figures, we find that the total amount made available last year for the redemption of Commonwealth and State debts was £10,891,869. The payments in redemption of Commonwealth and State debt during 1928-29 totalled £6,657,795 in Australia, and £3,396,502 oversea. The balance of the moneys made available during the year is represented by cash and investments.

As definite illustrations of the value of the Sinking Fund, I may say that, in connexion with our conversion operation of September, 1928, we were able to pay oft’ bondholders to the amount of £1,170,000 out of the fund, and that as regards our May, 1929, conversion, no cash subscriptions were asked for to pay off persons who did not convert, the National Debt Commisison having made available funds up to £1,500,000 for this purpose. In the case of the Queensland Loan of £12,704,000, which fell due in London on 1st July last, a sum of £300,000 was paid off out of our Sinking Fund moneys, whilst the South Australian Loan of £200,000 which also fell due in London on 1st July was wholly repaid from the Sinking Fund.

These facts show clearly that Australia is effectively attacking the task of debt redemption.

The London figure includes £82,790,481 due under the funding arrangement with the British Government.

In this period our war debt was reduced by £5,602,361, while works debt increased by £10,439,845 - the increase in the gross debt being, as already stated, £4,837,484.

The net debt at 30th June, 1929, was £349,356,349, as against £347,168,157 at 30th June, 1928, and is arrived at as follows : -

The debt which the Commonwealth incurred on behalf of the States increased in 1928-29 by £43,019,528. Some explanation is required of this figure to prevent misapprehension.

Under the terms of the financial agreement with the States, it is provided that - except when the Loan Council ‘ decides that a State should borrow in its own name in London - Commonwealth securities shall be issued for all new borrowings for States, and for all State conversions. The £43,000,000 represents the sum total of both conversions and new borrowings for the States in 1928-29 in respect of which Commonwealth securities were so issued. As an indication of the extent of new State borrowings for the year the figure has, therefore, nosignificance.

The National Debt

The following table extends to the 30th June, 1929, the information given in my last budget speech, regarding the growth and character of our debt charges for the period of six years ended 30th June, 1928:-

The following table sets out the debt per head : -

Our war debt has thus been reduced by £45,276,000. Our debt for Commonwealth works has increased by £58,058,000. On a per capita basis the total debt has decreased by £6 12s. 5d. per head. A net increase of £12,782,000 in our public debt for a period of seven years - or an average of slightly over £1,800,000 a year when £8,000,000 of tangible assets have been created each year - is a matter for praise rather than censure. The position is improved if we remember that, as against £45,276,000 dead-weight war debt which we carried seven years ago, an equivalent amount of debt has been transferred to the category of works debt, represented almost wholly by assets, and most of them of a productive character.

The debt position in the last seven years may be briefly summarized thus : -

  1. There has been an increase of £13,000,000 in the gross debt -slightly over £1,800,000 per annum.
  2. About £58,000,000 of assets have been created during this period against this increase in debt.
  3. Of this amount, £33,000,000 has been expended on post office assets and war service homes which immediately provide both for interest and redemption.
  4. The gross debt per head has been reduced from £66 4s. 3d. to £5911s. l0d. or a reduction of £6 12s. 5d. War debtwhich pressed on us at £60 9s. per head in 1922 receded to £45 8s. 5d. per head in 1929- a reduction of £15.

The States’ Debts

The debts of the six States at 30th June, 1928, were: -

The States’ debts having been almost wholly contracted for the creation of assets of a revenue-producing nature, it may be stated that, after paying working expenses, the net revenue available for meeting interest charges was £22,290,846 - or an average of slightly more than £3 per cent.

This total may be combined with the Commonwealth debt of 30th June. 1929.

or an average of £173 10s. 8d. per head of population.

These figures are not comparable with those of Great Britain, Canada, the United States and other countries, because in Australia many public utilities, such as railways, tramways, telephones, electricity, water supply, &c, have been provided by the Governments, whereas in the countries mentioned similar public utilities have been left to private enterprise.

Commonwealth Bank of Australia

The Commonwealth Bank is continuing to make steady progress and its usefulness as a national institution is being gradually developed. The profits of the bank (which exclude those of the Note Issue Department and Commonwealth Savings Bank of Australia) for the twelve months ended 31st December, 1928, amounted to £431,523.

Note Issue Department

The profits of the Note Issue Department were £1,042,899, of which £782,174 was paid to Consolidated Revenue Fund of the Commonwealth and £260,725 to the Rural Credits Capital Account.

The statutory reserve of the gold holding as against the notes circulation required under the Commonwealth Bank Act governing the Note Issue Department is fixed at 25 per cent. - the percentage at 30th June of this year, however, showed the very satisfactory position of 52.42 per cent.

Rural Credits Department

The development of the Rural Credits Department of the bank is very satisfactory, and the purposes for which it was created are being fulfilled. Advances to the primary producers have during the 1928-1929 season exceeded those of any similar period.

Advances for the period have been made against arrowroot, butter, cotton, eggs, egg pulp, canned fruits, fruit pulp, jam, fortifying spirit, peanuts, superphosphates, wines, wool, wheat.

Since the Rural Credits Department of the bank was formed, the interest charge on advances has been reduced on two occasions by½ per cent., the rate of interest now standing at 5½ per cent. per annum.

The profits made by this department during the year ended 31st December, 1928, aggregated £42,426, one-half of which was transferred to the Rural Credits Reserve Fund, and the remainder to the Rural Credits Department Development Fund.

Commonwealth Savings Bank of Australia

The position of the Commonwealth Savings Bank is now shown independently of that of the Commonwealth Bank. The profits of the Savings Bank for the year to 31st December, 1928, were £309,309.

During the year the necessary legislation was passed in three States to enable advances to be made from the Commonwealth Savings Bank to existing authorities in furtherance of the Government’s housing scheme, and in addition moneys have been made available to the prescribed authority in the Federal Capital Territory.

Commonwealth Bank Profits

The total profits of the Commonwealth Bank (including the Rural Credits Department and the Savings Bank) have grown steadily during recent years, the figures being -

These amounts do not include the profits of the note issue.

The New Year

In framing the Budget for the year 1929-30, the Government was faced with almost unprecedented difficulties. The temporary financial depression pointed to reduced revenue from direct and indirect taxation. Growing commitments for interest and sinking fund, pensions and repatriation of soldiers had to be met. The royal commission which inquired into the financial position of South Australia had recommended financial assistance to that State, and Mr. Justice Pike, after an exhaustive inquiry had recommended that the Commonwealth should shoulder a still further burden in respect of soldier land settlement. Provision for capital expenditure was rendered most difficult by the disturbed conditions in London and New York and the depression in Australia. In addition it was necessary to formulate a scheme for liquidating the deficits of the two preceding years.

How it is proposed to overcome these difficulties will now be explained. I shall first deal with capital expenditure.

Loan Expenditure, 1929-30

In approaching the question of what capital works should be undertaken in 1929-30, the Government had regard to the general financial situation. The Loan Council met in May and at once realized that financial conditions made smaller Government programmes inevitable. In August the Loan Council again met, and in the light of existing financial conditions and with the best advice it could obtain, both from official and unofficial sources, decided on a further drastic reduction of 20 per cent. in the already curtailed programmes. This involves much lower expenditure on very desirable though not imperatively necessary services.

The estimated loan expenditure for the current year is £3,938,730 or 43 per cent. less than that estimated for 1928-29, and is £2,549,702, or 33 per cent. less than the actual expenditure of last year, the details being : -

In addition to the provision made for loan expenditure by the Commonwealth itself, £384,700 is provided towards a total of £450,000 for expenditure on works by the Federal Capital Commission, and £2,000,000 for loans to the States’ under the £34,000,000 development and migration scheme. This £2,000,000 is included in the loan programmes of the States.

The loan expenditure of the Commonwealth falls into two main categories. The first of these, which consists of Post Office works and buildings; war service homes, defence works and buildings and other Commonwealth works is essentially a

Commonwealth matter. The second consists of contracts entered into with the various States.

The Post Office vote, which is approximately half of the total Commonwealth vote, is chiefly for the purpose of installing telephone services, of which the Commonwealth has the monopoly. Last year over £2,000,000 was provided for this purpose. These works are immediately revenue-producing to the full extent of the interest paid and in addition provide adequate sinking fund contributions. So long as telephones are a Government monopoly, the demands of public business and convenience must be satisfied.

The war service homes vote is about one-fifth of the total Commonwealth loan programme. It is a definite encouragement to thrift, and an incentive to the soldier to marry, settle down, and people the Commonwealth. These loans are repayable by instalments spread over a definite period of years and carry interest at 5 per cent. The repayments automatically go to the sinking fund to redeem the original loan from the public. At the present time there is less than 1 per cent. of arrears. The general depression and the fact that many houses are becoming vacant make it unwise in the interests of the soldiers themselves to pursue too vigorous a building policy at present.

The amount of £631,000 provided for the Grafton-South Brisbane railway is in accordance with an agreement made between the States of New South Wales and Queensland and the Commonwealth in 1924 to carry out the first step in the unification of the railway gauges of Australia. This work is being carried out under a firm contract between the contracting Governments. It has been found that the sum of £4,000,000 authorized for this work will be exceeded owing to alterations in the conditions of labour and estimates of materials. An Appropriation Bill will be brought down in due course.

River Murray Waters absorb £200,000 for the current year. This sum is onequarter of the total expenditure of the River Murray Waters Commission inaccordance with an agreement made in 1914 with the States of New South Wales, Victoria and South Australia. The sum set down this year will be sufficient to carry on pending the economic survey now being made of the River Murray valley.

Wire netting advances will amount to £100,000 in accordance with, an arrangement made with the States in 1926 for loans under special terms and privileges to increase the carrying capacity of our great pastoral regions.

Soldier Land Settlement

When plans were first made for the settlement of returned soldiers on the land, the Commonwealth desired to control the work. The States, however, insisted on having full control and in excluding the Commonwealth from any share in the administration.

It was agreed by the Commonwealth and the States that certain concessions should be granted to soldier settlers, and the Commonwealth undertook to contribute to the expense involved in these concessions.

The following assistance has already been granted by the Commonwealth: -

  1. Sustenance was paid to settlers to the extent of approximately £500,000.
  2. A rebate of2½ per cent. per annum for the first five years was made of interest on advances by the Commonwealth to the States for soldier settlement, the rebate amounting to £4,735,000.

This was intended at the time, by both States and Commonwealth, to cover the Commonwealth’s responsibility for losses in respect of soldier land settlement.

  1. In 1925 the Commonwealth offered to relieve the States of responsibility for £5,000,000 of the principal amounts of soldier settlement loans owing to it by the States and to reduce the rate of interest on the balance of those loans to 5 per cent. per annum after 31st December, 1930. This was designed to bring the Commonwealth’s contribution up to approximately half of the total losses and was subject to the condition that the States dealt fairly with all soldier settlers.

In 1927 the Commonwealth decided to have an independent investigation made of the whole position of soldier land settlement, with a view to securing a comprehensive and final solution of the difficulties involved.

Mr. Justice Pike, of the New South Wales Land and Valuation Court, a leading authority on all land matters, was commissioned to conduct the investigation, and after making exhaustive inquiries into the nature of and amount of losses and the responsibility for losses, has furnished a report.

The Commissioner is of opinion that, whilst the Commonwealth is under no legal responsibility in the matter, the Commonwealth and States should share equally in the losses and that, in calculating the further amount of loss to be borne by the Commonwealth, previous assistance should be taken into account, with the exception of the sustenance grants amounting to £500,000. The Commissioner, therefore, recommends that the Commonwealth should make a further contribution by taking over from the States such an amount (£2,447,782) as will bring its contributions up to half of the total loss. He also recommends that this debt should be assumed as from 1st July, 1927, and interest rebate should be made at the rates paid, by the State to the Commonwealth. The following table prepared by the Commissioner sets out the position : -

To these figures must be added the amounts of further losses, say £300,000, consequent upon providing “home maintenance areas.” This will involve the further writing down of indebtedness in the States of New South Wales, Victoria, Queensland and Tasmania. . The term “ home maintenance area “ means such an area as when worked by an industrious settler will, under average seasons and circumstances, return him sufficient to meet his commitments to the State and maintain himself and his family in reasonable comfort. The Commissioner considers that the failure to provide such areas has been largely responsible for losses, and will cause further losses unless adjusted.

It will be noted that the State of Western Australia has already been relieved of considerably more than half of its loss.

Mr. Justice Pike’s investigation was instituted by common consent for the purpose of arriving at a final adjustment of responsibility between the Commonwealth and the States. The Government, therefore, accepts the recommendations of the Commissioner, and will take action on the following lines: -

  1. That the basis suggested by Mr. Justice Pike, viz., that the Commonwealth and States share equally in the losses, be accepted, and that to give effect to this decision, the Commonwealth assume responsibility as at 30th June, 1927, for a further amount of £2,447,000 of the soldier settlement loans owing by the States.
  2. That a condition of such acceptance be the completion of the satisfactory settlement of the soldier settlers now on the land, particularly in respect to the provision of home maintenance areas.
  3. That, in order to cover losses to be incurred in providing home maintenance areas, the further loss on that account be taken as £300,000 and that £150,000 be added to the Commonwealth’s share of the loss, making, say, £2,600,000; the £150,000 to be allocated to the States affected on the basis of the number of soldier settlers now on the land. This clause applies to New South Wales (outside irrigation areas), Victoria, Queensland and Tasmania.
  4. That the interest concession made by the Commonwealth to the States in 1925 be varied so that after 31st December, 1930, the States and the Commonwealth shall share equally any liability in excess of 5 per centum per annum for interest payable on the Commonwealth loans from which the money due by the States to the Commonwealth for soldier land settlement was provided.
  5. That this settlement be effected only on the States agreeing that it be full and final.

Expenditure out of Revenue, 1929-30.

Part I. - Departments and Services other than Business Undertakings and Territories of the Commonwealth:

In preparing the estimates of expenditure for 1929-30, the Government carefully examined every avenue of expenditure, ‘with a view to its limitation in every possible way. The serious position of the finances was brought under the notice of all concerned, and the co-operation of the Public Service Board, heads of departments and departmental officers, was secured in a sustained effort to reduce departmental and other expenditure to a minimum. As a result, economies were effected in many directions, but particularly in the departmental expenditure. Increasing payments “due to awards and to the growth of business have been offset in practically all cases by definite reductions of expenditure in other branches of departments. The result is that, though unavoidable increases of £582,561 had to be provided for in respect of War and Repatriation Services, Invalid and Old-age Pensions, and Interest and Sinking Fund on Works Loans, the net increase in expenditure “was limited to £87,084. A saving of £500,000 was thus secured as an offset against the unavoidable increases referred to.

The estimated, expenditure under Part I. of the Estimates is £51,986,161, being an increase of £87,084 above the actual expenditure of the previous year. The following are the chief items of increase : -

For Defence £4,345,000 is provided. This is a reduction of £290,282 on the corresponding expenditure of last year. This reduction has been secured mainly in the naval services. The reduced provision includes £106,000 for Civil Aviation, which, with £144,000 available in Trust Fund, provides for a total programme of £250,000.

The amount set down for Miscellaneous Services is £266,837, or a decrease of £172,772 below the expenditure of last year. This decrease is partly due to the abnormal expenditure on Commonwealth elections last year, and partly to confining services for this year to absolutely essential requirements.

For Additions, New Works and Buildings, the sum of £158,816 is set down, or a decrease of £37,625 below the expenditure of last year.

War, Repatriation, Defence and Special Appropriations account for no less than £48,580,000 out of the total expenditure of £51,986,000 for Part I. This only leaves £3,406,000 for other services, which includes £2,980,711 for ordinary administration expenses of departments.

The departmental expenditure really reflects the true cost of government administration. Despite the extension of services, the expenditure in this section of the Estimates has for some years been practically stationary. The expenditure for 1927-28 was £3,081,253, for 1928-29, £2,987,306, and the estimate for 1929-30 is £2,980,711. This’ result has been achieved notwithstanding that the increases in salaries alone, due to arbitration determinations and increments to officers who have not reached the maximum of their grades, amounts to approximately £80,000 per annum. This excellent record is due in great measure to the strict control of expenditure by the responsible officers of the several departments and to their loyal co-operation with Ministers. This control has been assisted by a continuous economy campaign carried out through the medium of departmental committees.

In a department like that of Health, it is not possible to reduce the expenditure without sacrificing a national and beneficial policy. The estimate of £147,000 for Health is an increase of £26,000 on the expenditure five years ago and is essential for giving effect to the national policy formulated by the Federal Health Council. For the other departments, the provision has been reduced below the actual expenditure of last year in some cases, and in other cases there has been slight increase due to new activities such as the control of bankruptcy. Nevertheless, the total provision for this year is £6,595 below the expenditure for 1928-29 and £100,542 below the expenditure for 1927-28.

War and Bepatriation Services absorb £30,324,521, which is an increase of £226,770 over last year. The chief expenditure is interest and sinking fund, which account for £21,180,000. Notwithstanding the conversion of £150,000,000 of 4J per cent, and 5 per cent, loans to 5J and 5£ per cent, loans, the total charges for interest and sinking fund have remained practically stationary during the last five years. This is due to the redemption of £7,500,000 of war debt from accumulated surplus moneys, and about £3,400,000 from reparation moneys, which have brought about a saving of over £550,000 a year in interest. War pensions account for £7,850,000. There has been a gradual increase in this item, and the peak year will soon be reached. For Repatriation Services £1,000,000 is set down! This includes provision for medical benefits, living allowances, the war pensions appeal tribunals recently appointed, and £158,000 for the education scheme for soldiers’ children under eighteen. For children over eighteen, about £20,000 a year is being expended out of balance held in trust account. If any saving is to be made in this item, the most practical method is to apply all available moneys to the education of children under eighteen.

Special’ Appropriations other than War and Repatriation total £13,910,160, being an increase over last year of £367,588. The services covered by this item have already received parliamentary approval. The chief increases are £175,761 for invalid and old-age pensions, and £180,030 for interest and sinking fund on works loans. Bounties and assistance to primary industries amount to £640,000. Maternity allowances account for £600,000, a reduction of £61,000 on the expenditure of last year. This reduction will be brought about by amending legislation restricting the bonus to persons with a family income not exceeding £8 a week.

Old-age and Invalid Pensions absorb £10,300,000 - an increase of £176,000 over last year, and more than twice the increase in the Estimates as a whole.

In the liberality of its treatment of those permanently or totally incapacitated, whether as the result of war or civil diseases or injury, and in the generosity of its treatment of aged pioneers, Australia has led the world. This has imposed an expenditure of nearly £18,000,000 per year on the taxpayers of Australia, equal to a tax per head of nearly £3. In addition an enormous sum in connexion with social relief is also levied upon industry under legislation and administration of various States. Workers’ compensation annually costs £2,826,000 in premiums, of which £974,000 represents costs of administration and profits. Widows’ pensions in New South Wales are costing £700,000 per annum. The relief of widows and orphans in other States costs annually a further sum of £1,200,000, which must be met by taxation. In addition a number of staff pension schemes are in operation in various States, to which the State

Governments contribute liberally. Outside of these schemes, which directly involve taxation, many firms are contributing large sums to privately-managed schemes, while in addition industrial insurance societies and friendly society organizations cover a wide field among the thrifty.

It is evident that because of the multifarious forms of administration and methods of handling there is much overlapping administration and consequent unnecessary costs. There is at the same time a vast field among the least provident, which has not been touched at all. The cost of hospital upkeep that is borne by the States, and the economic loss that is borne by the community, are materially increased through the preventable illnesses of many who under present conditions are not provided for, and cannot procure for themselves the necessities that will restore them quickly to health. To bring order out of this chaos, to eliminate the useless overlapping that is at present taking place in connexion with social relief, to lessen the charge on industry at the same time as the benefits to the individual and the community are increased, the Commonwealth Government brought down a National Insurance Bill.

This measure provides for compulsory insurance against sickness, accident, permanent disablement, death or old age and makes provision for widows and orphans and children’s allowances when the breadwinner is removed. The scheme aimed at altering the nature of the present old-age and invalid pension system where poverty, in addition to advanced age or permanent incapacity, is the credential required for the pension. It is obvious that such a test for the pension must discourage thrift and be repugnant to, even if inevitably accepted by, many deserving citizens. The National Insurance scheme provides for the removal of this defect in our present system by making old-age and invalid pensions a right of the worker because of contributions during his working life, a right which he will obtain without question as to his other savings or financial position. To superimpose this system on the present chaotic and wasteful conditions would result in an added burden on industry. Accordingly when the Bill was introduced, it was stated that it was not proposed to proceed with, the scheme until the whole question had been discussed with the State Governments and other organizations concerned. At the Premiers’ Conference in May last, the Commonwealth Government therefore asked the States whether they were prepared to assist in co-ordinating or, if necessary, to transfer by legislation, the control of this whole field. After discussion arrangements were made for a questionnaire to be sent to the States to ascertain their present costs and methods of relief and the most economical means of consolidating them. It is believed that the saving that could be thus effected in administration would very closely approximate, if it did not exceed, the charge on industry that additional benefits of the National Insurance Scheme proposed by the Government, would entail. Until the questionnaire has been replied to and the whole question thoroughly examined and the best means of co-operation discovered, the Commonwealth Government intends to postpone further dealing with the National Insurance Bill. In our present circumstances it has to be recognized that however desirable social legislation for the conferring of additional benefits upon the people may be, there is a limit beyond which we cannot wisely go in this direction. Expenditure upon schemes of this character falls ultimately upon the industries of the country, and the burdens so imposed are immediately reflected in the cost of living of the nation, while the benefits to the community may be delayed.

In the meantime it should be observed that if a permanent and progressive decline in the price levels of our commodities should take place the only method whereby the expenditure on invalid and old-age pensions, which absorbs more than the whole income tax of the Commonwealth, can be maintained, is by increased and more efficient production in Australia. The continuance of industrial stoppages and fomenting of industrial conflict must depress our standard of living. The greatest hardship will fall on the invalid and aged who are helpless to avert the blow.

Public Service Arbitration

The Commonwealth Public Service is controlled in part by the provisions of the

Public Service Act, in part by regulations made upon the recommendation of the Public Service Board, and in part by determinations of the Public Service Arbitrator. This complicated and overlapping system cannot be regarded as satisfactory in principle, and the expense and complexity which result from the action of several agencies in the same field are not satisfactory in result. There should be, subject to preservation of Parliamentary control, a definition of the spheres of the various authorities. It is accordingly proposed to introduce legislation to this end.

Life Insurance

The Government is bringing down a bill to regulate the business of life insurance. The need for such a measure has long since been apparent, not only to safeguard the interest of the policy holder, and thus maintain inviolate an important form of thrift, but to replace the differing - and in some cases defective - laws of the several States, by a uniform law which will operate effectively throughout the Commonwealth. The provisions of the bill are based mainly on the life insurance legislation in force in Great Britain, in the States of the Commonwealth and in New Zealand, on the report of the Commonwealth Royal Commission on Insurance 1910, and on the recommendations of the Departmental Committee of the British Board of Trade submitted in 1927. Consultation with the Australian life insurance authorities has taken place in the preparation of the bill.

Defence

During the last five years, the Treasury has provided substantial sums for Defence development in accordance with a welldefined policy laid down in 1924. An additional expenditure of £1,000,000 per annum for the development of ordinary Defence services was provided, as well as £7,400,000 for naval construction, and special sums of £250,000 and £200,000 for air services equipment and civil aviation respectively. In addition, £620,000 was provided as a reserve for Defence.

In the ordinary course, the Government would now have proceeded further with the development of the air services and would have put into operation the three years’ developmental programme of the air force recommended by Air Marshal Sir John Salmond. The financial situation, however, makes it impossible for the Government to commence this programme of air force development during the present year, and, moreover, necessitates some adjustment of Defence activities in other directions.

The total expenditure on defence under ordinary services, new works, loan expenditure and development programme last year was £5,383,892. The Government proposes to provide in 1929-30 a total of £5,146,356, a reduction on the total of £237,536.

In drafting the Estimates in accordance with the reduced sum available, full regard has been paid to the relative importance of all activities, and the economies have been confined to the curtailment of services having least ill effect upon the high, standard of efficiency desired of defence services generally. The basic organizations will not be permanently affected by the reduced expenditure, nor will their efficiency be impaired to any great extent.

Civil Aviation

The new air mail services between Perth and Adelaide, and Charleville and Brisbane, were established in January and April, 1929, respectively, and a contract has been let for the commencement of a further service between Camooweal and Daly Waters by February, 1930. The activities of flying training clubs and schools subsidized by the Commonwealth are developing satisfactorily. Funds have been made available for the provision of new aerodromes and hangars, as well as for improvements to terminal aerodromes in certain of the capital cities. In all, £250,000 will be available in 1929-30 for civil aviation. The expenditure in 1928-29 was £115,612.

Council for Scientific and Industrial Research

After mature consideration, the Government has authorized increased expenditure by the Council for Scientific and Industrial Research for the conduct of its investigations. Provision is made for an expenditure of £256,811 as against £99,520 actually spent last year. The capital expenditure on laboratories will absorb £109,000, whilst £89,000 is required for work already in progress. The balance of £58,000 is for the extension of work during the current year, when, with completed laboratories, a very determined attack will be possible on outstanding problems affecting animal industries.

Of the total estimated expenditure for the year, the council will obtain a recoup of £34,000 from the Empire Marketing Board.

The provision of additional funds during the present year has been rendered possible by the action of the Commonwealth in appropriating portion of its surplus revenue in earlier years for payment to a trust account for scientific and industrial research. The greater part of these moneys will be absorbed this year. Thereafter, moneys provided by the Commonwealth for this purpose will be a charge on the revenue of the year. When this happens, the work of the Council for Scientific and Industrial Research will be in jeopardy unless the industries benefiting by its work are prepared to provide funds for its continuance. The Government is willing to support this work, but cannot carry the whole burden. It will be essential that private individuals and interests should come to the assistance of the council in many of its activities if they are to be maintained.

The council is restricting its attention almost entirely to the primary industries. Increasing severity of competition in the products of these industries is forcing every country to look to its costs of production and to eliminate waste, whatever its cause. Our annual losses from animal and plant diseases, from the spread of weeds, from insect pests, and from lack of real knowledge of our soils, run to millions of pounds. Scientific research costs little compared with the huge stakes available to those who will use it.

Prickly pear control in Queensland is becoming a world-famous instance of applied biology. Probably the value of land saved or reclaimed in the present year will be several times the total spent by the Commonwealth and State Governments on the investigation of the methods now proving so successful.

Wool is menaced by competition of other fibres, and a serious situation confronts Australia unless the cost of its production can be reduced and its use extended. Wool is a crop from the soil, obtained through the sheep, and if we are to avoid waste and obtain maximum efficiency at the lowest cost, we need far more information than is at present available regarding the nutrition of the animal, the factors determining its yield of wool and its resistance to disease. Rapid progress is being made along these lines. Four field stations provided free of charge by pastoralists are in operation, and the number should be increased. This work is as indispensable as the intense advertising campaign which the industry is now considering.

It seems likely that a simple method of controlling bitter pit in apples has been discovered. The problem of blue mould in tobacco is already well on the way towards solution. Minor troubles; such as water-blister in pineapples, are yielding to systematic work. A section is being established for the importation and testing of plants likely to be of economic value. America imported 78,000 new plants in about twenty years, with immense advantage.

The entomologists are concentrating on the sheep blow-fly, the buffalo fly, white ants, codlin moth and other insect pests, and are seeking methods for controlling weed pests. A heavy feeder on St. John’s wort is about to be imported. Ragwort, hoary cress, thistles, Noogoora and Bathurst burrs, stinkwort, &c, are receiving attention.

Animal diseases are being investigated. Liver fluke in sheep need no longer be tolerated. Braxy disease is yielding to investigation in Victoria. Caseous lymphadenitis - the greatest evil threatening the sheep industry - presents a most acute and urgent problem.

Work in the irrigation areas is extending

In the field of food preservation and transport, co-operative work is in progress with authorities in Great Britain, covering both fruit and meat.

All these investigations are investments of a most promising type. They touch every State, and existing scientific institutions throughout Australia are becom ing more closely associated and, in a measure, stimulated as a result of this steadily growing Commonwealth effort. All this makes for economy and strength within our own borders. No less important is the imperial aspect of the situation. Through the Empire Marketing Board we are receiving considerable assistance not only financially, but by securing for ourselves the results of investigations throughout the Empire. There is a “ team idea “ in this scientific work. Never before has the Empire in its peacetime pursuits aimed so earnestly at united work as it is doing to-day in scientific and industrial research.

British Preference to the Dominions.

The possibility of the British Government abolishing preference to the Dominions is a matter of most serious concern to Australia. In view of the importance of the issues involved, and of the advantages to be gained by fostering interempire trade, the Government hopes that action will be deferred until the subject can be fully discussed by the British and Dominion authorities in conference. The approximate value of the preference granted by Great Britain to Australian products in 1927-28 was £1,400,000. If the British goods imported into Australia subject to preference had paid the general rate instead of the preferential rate of tariff the amount of Customs duty for 1927-28 would have exceeded by £7,600,000 that actually collected.

German Reparation

The Young Committee of Experts recently investigated the problem of reparation, and submitted a revised scheme for a permanent settlement.

The scheme provides for Germany to pay 37 annuities, averaging £99,500,000, to cover her obligations in respect of reparation and other charges under the Treaty of Peace. After the period of 37 years, Germany would be liable only to provide inter-allied war debt payments to the United States of America, which continue until 31st March, 1988.

The British Empire’s share of the annuity of £99,500,000 is, approximately, £20,450,000. This represents a loss to the

British Empire of about £2,500,000 a year compared with what the Empire would have received if the total annuity had been distributed in the same proportions as the Dawes annuities were distributed.

Before the committee of experts furnished its report, indications were received that the British Empire would probably suffer in the basis of distribution of new annuities. The Commonwealth Government at once cabled to His Majesty’s Government, and urged that every effort should be made to prevent any modification being agreed to which would have the effect of unfavorably altering the basis upon which the Dawes annuities were distributed. In this matter, the Commonwealth Government strongly supports the British Government’s attitude of opposition to the adoption of the Young plan in its 1 present form.

Part II. - Business Undertakings.

Having dealt with the expenditure under Part I. of the Estimates and matters allied thereto, I will now proceed with the estimated results of business undertakings during 1929-30, and show their effect on the general Budget.

Commonwealth Railways

The increase in the traffic on the TransAustralian railway continues to be satisfactory. The surplus of earnings over working expenses during the present year is estimated at £74,000, compared with an actual surplus of £43,327 for the previous year. The passenger traffic on this rail- way in the last three years has increased from 24,351 to 31,109, an increase of 6,758 or more than 27 per cent.

The business on this railway is hampered by breaks of gauge and narrowgauge lines. The running of Commonwealth trains into Adelaide station, as provided for under the Railways (South Australia) Agreement Act 1926, will in some measure correct this position and will secure greater traffic with better financial results. The Commonwealth has included in its offer to South Australia a proposal to take over the Red Hill-Salisbury railway together with its capital liabilities. The line would be converted into 4ft. 8£in. gauge to obviate uneconomic necessity of putting down a third rail at a cost of £300,000.

Postmaster-General’s Department. telephone services.

The phenomenal expansion of the telephone services continues. During 1928- 29, 29,033 telephones were added, bringing the total to 505,554. ‘ There are 221,725 telephones in the country, representing 43.8 per cent, of the total. Australia is sixth on the list of telephone density in the countries of the world.

Last year approximately 35,000,000 trunk calls were handled - double the annual output five years ago.

The proposal to link Tasmania with the mainland by means of a wireless telephone service is being actively pursued.

Several experimental installations of rural automatic exchanges are successfully operating. With a view to selecting places for the introduction of automatic equipment, a comprehensive review .is being made of all districts in the Commonwealth. telegraphs.

Direct working has been established between Perth and Melbourne.

Provision is made for the introduction of fast speed printing telegraph services on carrier channels between Perth and Adelaide during the current year. These arrangements will be extended in order to give Perth direct telegraph communication with Sydney and, later, with Brisbane.

The first picturegram service in the Commonwealth is in process of installation between Melbourne and Sydney and will be available for service at an early date. All matter capable of photographic reproduction may be transmitted by the photo-electric process being established. national broadcasting service.

In accordance with the Government’s policy for the inauguration of a national broadcasting service, a contract for the supply of the programmes throughout the Commonwealth has been placed with the Australian Broadcasting Company.

The responsibility for the whole of the technical services has been vested in the post office, and the two principal broadcasting stations in Sydney and Melbourne respectively have been transferred to the new system.

Plans are being developed for the provision of a complete network of broadcasting stations intended to afford an efficient service to a very large percentage of the population of the Commonwealth.Orders have already been placed for two additional stations, and provision has been made to commence work on three further stations during the current year. The construction programme will occupy possibly three years. general.

The surplus resulting from the services to be rendered by the Post Office Department in 1929-30 is estimated at £829,161 compared with a surplus in 1928-29 of £158,328. The improved position is the result of a campaign of rigid economy and oversight of all expenditure combined with an adjustment of charges for telegraphs and telephones.

Part III. - Territories of the Commonwealth.

As the revenues payable to the Treasury from Territories are negligible, practically the whole of the expenditure is a burden on the general revenue. It is estimated that the deficit arising from the administration of the Territories will be £627,630 in the current financial year, being an increase of £122,816 over the previous year. This increase is chiefly accounted for by increased expenditure of £87,972 on the Sydney-Canberra road, and £33,229 for interest on loans.

Part IV. - Payments to or for the States.

The permanent provisions of the financial agreement having now come into force, the Commonwealth Budget, for the first time, reflects the interests payments on the debts of the States. The Budget figures are thus swelled by an amount of £25,910,357.

The following are the details of the estimated expenditure for payments to the States in 1929-30 : -

The total estimated payments of £41,489,912 compares with £15,126,281 in 1928-29, an increase of £26,363,631. The “ balance of interest on State debts “, viz., £30,000,000, will be recovered from the States so that the burden on the Budget’ will be £11,489,912, an increase of £453,274 compared with 1928-29. This increase is made up of assistance to South Australia totalling £360,000, an additional grant of £30,000 to Tasmania, making the total grant £250,000, and £63,274 in Commonwealth contributions to the sinking fund for the extinction of State debts.

In the report of the royal commission appointed to inquire into the finances of South Australia as affected by Federation, which has already been made available, it was recommended that the Commonwealth should make a grant to the State of £1,000,000, to be paid in two equal annual instalments.

It will be generally acknowledged that in considering the question of a special grant of Commonwealth revenue to a State, the position of the Commonwealth finances as well as those of the State, must be kept in mind.

The Government, after having given careful consideration to the report of the royal commission, has decided to make a grant of £1,000,000 to be spread over three years instead of two years as recommended. The Commonwealth’s proposal is to make certain cash payments and to take over the Red-Hill-Salisbury railway, and the liability for interest and sinking fund in respect thereof. The annual liability is approximately £60,000 and forms part of the three annual grants rereferred to. The cash payments and the relief, taken together, will total £360,000 in 1929-30 and £320,000 in each of the two following years. If the Government of South Australia agrees to this proposal, the Commonwealth will in effect, be contributing £60,000 to the revenue of that State each year after the year 1931-32.

When the question of a grant to Tasmania for last financial year was under consideration, the Government stated that, before it could agree to the principle of a fixed grant for a period of years, the whole question of internal transport, which was one of the prime causes of the financial difficulties of Tasmania, and the associated question of ports and harbours, should be reviewed by a committee. These matters have now been discussed by the two Governments and agreement has been reached as to the action to be taken. The Government accordingly now proposes to make a grant of £250,000 per annum to Tasmania for five years.

Federal Aid Roads

The Federal Aid. Roads Board scheme is now operating smoothly in all the States, and good progress is being made in the construction and reconstruction of the roads covered by the first five-year programme. The improvement in road surfaces, not only along the main trunk and arterial roads, but also in newly developed areas, is largely due to the expenditure of the funds provided by the Commonwealth and the States under the Federal Aid Roads Act, which contemplates an expenditure of £35,000,000 over a period of ten years. To date, £10,500,000 has been allocated to specific roads, and an amount of £7,244,808 has been expended in carrying out the approved programme.

Use of Surplus Revenue

Until two years ago the Commonwealth was never without surplus revenue. In 1927-28 there was, however, a deficit of £2,628,743 in the Consolidated Revenue Fund. The prospects of a revival in Customs revenue then justified the Government in refraining from making proposals for the immediate liquidation of that deficit. These expectations were, however, not realized. There was a further deficit of £2,358,975 in the revenue of 1928-29, so that at 30th June, 1929, there was an accumulated deficit of £4,987,718. Before dealing with the liquidation of this deficit, I propose to show the uses made of surplus revenue since 1923-24.

The chief purposes for which surplus revenue was used were : -

The debt redemption payments represent so much money actually saved and have resulted in an annual saving of nearly £400,000 in interest. The sums provided for defence purposes have enabled the Commonwealth to complete its naval “construction programme out of revenue and to develop its defence forces. The moneys put into science and industry investigations were a good investment from which practical results are already being obtained. The Main Roads Grant assisted the States in the development of main roads throughout Australia. The moneys put aside to assist marketing have been well spent, whilst the securing of radium requires no justification.

Estimated Revenue, 1929-30

The expenditure under the four parts of the Estimates will now be summarized so as to ascertain the amount of revenue required to balance the Budget for the year.

The Commonwealth Government’s taxation proposals must cover this expenditure. At the same time, it is necessary to deal with the accumulated deficit of £4,987,718. To liquidate the whole of this accumulated deficit in one year would impose intolerable burdens on industry in Australia and would accentuate and prolong the existing temporary depression. The Government therefore proposes to liquidate the deficit over a period of years, and has decided to budget this year for a total revenue of £64,198,000 consisting of

After providing for the expenditure of £63,837,102, there will remain a surplus of £360,898 available towards the deficit. This is being supplemented by an amount of £1,200,000 which fortunately has become available. In November last the Public Trustee reported that, in his opinion, the interest and other revenue earned by the Public Trustee did not have to be accounted for as Reparations, but should be paid to Commonwealth Revenue. At the same time, the Auditor-General sought legal advice regarding the profits of the Custodian of Expropriated Property. The Solicitor-General advised that it was not necessary to treat the profits and income of either the Public Trustee or the custodian as reparation receipts, and that there was no objection to the payment of the moneys to the Commonwealth revenue. As the result, the accumulated income of the custodian and of the Public Trustee, amounting to approximately £1,200,000, will be available this year for payment to revenue and will be applied towards the liquidation of the deficit. With the surplus of £360,898 already referred to, there will thus be this year a total of £1,560,898 towards extinction of the deficit, leaving £3,426,820 to be dealt with subsequently.

With a decline in Customs and Excise receipts, the amount of revenue required to meet, the expenditure for 1929-30 could not be obtained from existing sources of revenue at present rates. Additional taxation therefore becomes necessary. The Government realizes that this additional taxation must bear as lightly as possible on industry, and therefore proposes to place the burden upon the users of luxuries and upon those whose financial position is such that they can bear the additional burden without personal hardship.

Direct Taxation

The estimated revenue from land tax is £2,800,000, being £188,885 less than the actual receipts from the previous year. The reduction in the proceeds from this tax is due to the leeway made up in 1928- 29 in collecting arrears of tax. The rate of tax is not being altered.

The revenue to be derived from the estate duties tax is very difficult to forecast, and the estimate of £1,900,000 for 1929- 30 allows for a decrease of £180,149 as compared with the actual collections last year. The rate of tax is not being altered.

Income Tax

It is proposed to raise £10,000,000 from income tax during the present financial year by a number of amendments in the law, principally for the purpose of checking the avoidance or evasion of tax, and by a super-tax involving a 10 per cent. increase in the rate of tax on taxable incomes exceeding £2,000 when received by individual persons. Rates of tax payable by companies or by an individual whose taxable income does not exceed £2,000, will not be increased.

The increase proposed will cause the rates payable on incomes exceeding £2,000 to be 18.8 per cent, greater than the 1915-16 rates. The rates operating in 1928-29 were 8 per cent, greater than those of 1915-16. Those operating in 1926-27 were 20 per cent, greater than those of 1915-16.

The maximum increase in rates above 1915-16 occurred in 1920-21 and 1921-22, when it reached 70f per cent.

The proposed amendments of the Income Tax Assessment Act will also remove several injustices : in the assessment of co-operative companies which have been disclosed recently.

Taxation of Overseas Shipping Businesses

A committee of the Ove’rseas Transport Association which met in Sydney in June, 1929, has submitted to the Government recommendations that action should be taken to remove what is regarded as an injustice to overseas shipping businesses arising out of the provisions of the Income Tax Assessment Act which require such businesses to pay income tax on an annual statutory taxable income equal to 7-J per cent, of the total receipts of the business in respect of passengers, cargo and mails taken on board at an Australian port for transport abroad. The committee urged the adoption of the scheme approved by the Imperial Economic Conference of 1923 upon submissions by the Shipping Taxation Committee Conference, viz., that the Commonwealth should only tax upon a taxable income arrived at by applying to the total Australian receipts the average rate of profit derived by the shipping business from all its shipping activities throughout the world. The Government is giving consideration to the recommendations of the Overseas Transport Association.

Taxation of Ex-Australian Income

It was stated in the Budget Speech of 1928-29 that, in accordance with an undertaking given to Parliament in the preceding session, the Government was communicating with other governments in relation to the taxation in other countries of residents of Australia for the purpose of examining all the facts connected with the taxation of that income in those countries, and of considering the difficulties to be overcome to eliminate double taxation in the event of the Commonwealth taxing its residents on income derived from sources outside Australia.

The present income tax laws of the Commonwealth provide for the taxation of income derived from sources within Australia, whether by residents of the Commonwealth or by persons who reside beyond the Commonwealth. Persons who derive income, from sources external to Australia are subject to the taxation laws of the countries from which the income is derived.

The major portion of income derived by Australian residents from external sources is derived from the United Kingdom, where this income is subject to taxation. In certain cases income derived from sources- within the Commonwealth is also subject to British taxation. An arrangement has been made with the British Government for the diminution of the hardship arising from the imposition of double taxation in such cases. The arrangement is embodied in Commonwealth and British legislation. It is an arrangement which is regarded by the Commonwealth as fair and equitable, but which, owing to the higher rates of taxation operating in the United Kingdom, is favorable to Commonwealth revenue. It is not desired to prejudice the continuance of this arrangement unless it is reasonably certain that the adoption of a new system would not result in diminishing Federal revenue and inflicting undue hardship upon Australian citizens.

In reply to the communication from the Commonwealth Government, the British Government has stated that any expansion of the scope of dominion taxation to income derived from the United Kingdom will tend to diminish the revenues of the British Exchequer, and that action in the direction of taxation of ex-Australian income will raise the question of the necessity of revising the basis upon which relief from double income tax is now allowed. The reply of the British Government invites attention to the report recently presented to the League of Nations by the Government experts on double taxation and tax evasion. It is also suggested that the subject might appropriately be reviewed at an Imperial Conference.

In anticipation of the possibility of the question being raised at the next Imperial Conference, the Commonwealth Government is seeking further information from the governments of other dominions before finally reaching a decision on the matter.

Amusement Receipts Tax

It is proposed to raise additional revenue of £600,000 by means of a tax of 5 per cent, on the .total receipts from charges for admission to entertainments. This tax will be a levy upon a national luxury, which, it is considered, should make a special contribution to the national revenue in the present circumstances, and will take effect on 1st September, 1929.

Records relating to the present entertainments tax, which will continue, show that the attendances at amusements have increased enormously since 1921-22, namely, from 78,000,000 to 126,000,000 in 1928-29.

Customs and Excise

The estimate of customs and excise revenue is £43,750,000, or £2,691,429 in excess of the actual collections of the previous year, and £197,522 more than the collections of 1926-27.

As the decline in customs and excise revenue was chiefly responsible for the revenue failing to cover the expenditure of the Commonwealth in the last two years, it has been decided to impose additional revenue duties, estimated to produce £2,750,000.

The customs duty on ‘real silk piece goods is being raised from 20 per cent, to 30 per cent, foreign, the British preferential tariff remaining unchanged.

The duty on artificial silk goods is being altered to 25 per cent. British preferential tariff, and 35 per cent, foreign tariff.

Precious stones, which at the present time are free of duty, will in future carry an impost of 10 per cent. -

The foreign and intermediate duties on motor chassis, both assembled and unassembled, will be raised by 10 per cent., the British preferential tariff remaining unaltered.

An additional duty of l£d. per foot on foreign cinematograph films will also be imposed, no change being made in the British preferential tariff, which still remains free.

Customs duties on brandy, gin, liqueurs, bitters, rum, whisky and wine are being raised by 2s. per gallon. This is equivalent to an increase of slightly more than 5 per cent, on present rates on spirits.

An additional excise duty of 2s. per gallon is being imposed on spirits manufactured in Australia.

An additional excise duty of 3d. per gallon is being imposed on beer, raising the excise from ls. 9d. per gallon to 2s. per gallon. In order not to prejudice local manufacture, a similar additional duty will be imposed on imported beer.

The customs duty on tobacco - manufactured and unmanufactured - and on cigarettes is being raised by 8d. per lb.

The duty on cigars will in future be 12s. instead of lis. per lb. under the British preferential tariff, and 14s. instead of 13s. per lb. under the general tariff. Thus, whilst the duty on leaf for the manufacture of cigars will be increased by 8d. per lb., the duty on imported cigars will be increased by ls. per lb.

An excise duty of Id. per gallon is being imposed on petrol refined in Australia, and a customs duty of 2d. per gallon is being placed on the petrol content of all enriched crude petroleum and once-run distillates.

The proposed duty on the petrol content of enriched crude petroleum and once-run distillates, and the excise upon petrol refined within Australia have been deemed necessary in the- interests of revenue for road construction purposes. Without these adjustments, a considerable and increasing quantity of petrol refined in Australia was escaping taxation for road purposes and an undesirable taxation anomaly was being created.

In selecting these items care has been taken to avoid imposing taxation on the necessaries of life and the increased revenue will be obtained from luxuries without adding to the cost of living.

Moreover it is considered that the increases will not materially interfere with the measure of protection enjoyed by any Australian industry. Should it be found, however, that the changes do in any way reduce the measure of protection now enjoyed by any Australian industries, the Government will be prepared immediately to consider the necessary tariff adjustments.

It will be noticed that in the tariff changes now made, the margin of British preference has either been maintained or increased.

Conclusion

I have endeavoured to lay before the Committee the more prominent and significant features of the finances for the past year, and in broad outline have reviewed the situation since this Government took office, as well as our present general economic position. I have also indicated the measures which, after mature consideration, the’ Government proposes to adopt for balancing the budget and liquidating the deficit.

Naturally it would have been a more agreeable duty for -me to have been in a position to announce that it had been found possible to achieve this objective by the one method of reducing our outgoings. Unfortunately that was not possible without encroaching upon payments of an obligatory nature supported by all parties in the House. While expenditure has been reduced wherever this could be done, it waa only possible to completely bridge the gap by raising additional revenues. And in formulating proposals for this purpose, the Government has endeavoured to raise the required moneys with the least possible dislocation of our economic conditions.

It is hoped that these additional burdens will be merely temporary. This should be possible if there is a cessation of industrial conflict with a revival of industry. That our unhappy industrial conditions have checked the flow of private capital, into industry is evidenced by the recent growth of fixed deposits in the banks. The increase of £33,000,000 in these deposits in the last two years is clear evidence that investors are marking time and awaiting a clearer industrial outlook. This withholding of capital from industry effects the worker most of all. The Government is proposing to remove one potent cause of turmoil in the industrial field by doing away with the duplication of Federal and State arbitration authorities.

National finance is no exception to the general law of ebb and flow. For many years Ave have been favoured with prosperous seasons and good prices for our wheat and our wool, resulting not only in revenue sufficient for all governmental needs, but enabling many remissions of taxation to be made. That sooner or later we should enter upon a period of some depression was inevitable. This condition is merely a passing phase in our economic life. We have ample resources awaiting our energies. In many directions - particularly railways - the States have created capital works adequate to a much larger population and a much greater production. A sure path out of our difficulties can be found in a combined national effort to obtain industrial peace and increased and more efficient production. I move -

That the first item in the Estimates, under Division I - the Parliament - namely, “ The Preside £1,300 “, be agreed to.

Ordered -

That the consideration of the general estimates be postponed until after the consideration of estimates for additions, new works, buildings, &c.

Progress reported.

page 240

PAPER

The following paper was. presented : -

The Budget, 1929-30 - Papers presented by the Right Honorable Earle Page, P.C., M.P., for the information of honorable members on the occasion of opening the Budget of 1929-30.

page 241

TARIFF SCHEDULE

In Committee of Ways and Means

Mr GULLETT:
Minister for Trade and Customs · Henty · NAT

– I move- (1.) That the Schedule to the Customs Tariff 1921-1928 be amended as hereunder set out, and that on and after the twenty-third day of August, One thousand nine hundred and twenty-nine, at nine o’clock in the forenoon, reckoned according to standard time in the Territory for the Seat of Government, Duties of Customs be collected in pursuance of the Customs Tariff as so amended.

That, excepting by mutual agreement or until after six months' notice has been given to the Government of the Dominion of New Zealand, nothing in this Resolution shall affect any goods the produce or manufacture of the Dominion of New Zealand entering the Commonwealth of Australia from the Dominion of New Zealand. and - (2.) That the Schedule to the *Excise Tariff* '1921-1928 be amended as hereunder set out, and that on and after the twenty-third day of August, One thousand nine hundred and twentynine, at nine o'clock in the forenoon, reckoned according to standard time in the Territory for the Seat of Government, Duties of Excise be collected in pursuance of the Excise Tariff as so amended. These schedules of Tariff and Excise, amendments are, of course, consequential upon the statement that has just been made by the Rt. Hon. the Treasurer **(Dr. Earle Page)** in his Budget Speech. Full opportunity will, of course, be afforded to the committee to discuss the items later on. "They are all, with one exception, purely of a revenue-producing character, and it is not my intention to deal with them now with the exception of the proposed deletion of paragraph 2, sub-section *c,* of item 229. That item provides for a rebate of 2d. on the duty on petrol which goes into non-road use. The Government regrets very much indeed that we are abandoning the original intention of Parliament to make a rebate of 2d. a gallon on imported petrol used for industrial and other purposes apart from the propulsion of road vehicles. Honorable members will remember that this rebate provision was agreed to in August, 1926, soon after the additional duty of 2d. a gallon on petrol had been imposed for raising a fund for national road construction in co-operation with the States. The object of the rebate was unquestionably a most praiseworthy one, but from the outset its administration was found to be impracticable. When I took over my present duties nine months ago I found that hardly any rebate had actually been paid. The only instances of payment were to large manufacturing firms such as rubber companies and dyeing works, which were able to purchase their petrol supplies direct from the importing companies. I was very much interested in the matter, and went into it with a view to seeing if the rebate provision could not be made to operate as was intended by Parliament, and particularly whether it could not be made operative over the rural districts of Australia. I am sorry to say that I have found the difficulties insuperable. The first difficulty was that under the Customs Act a rebate can be made only to the original person paying the duty. Unfortunately, in the distribution of petrol, the importer is very seldom the retailer. Except in a few isolated instances the importer sells through thousands of retailers spread over the countryside. The only possible procedure, therefore, is for the importer to collect evidence through retailers, including the thousands of garages scattered throughout the States, that the petrol had actually qualified for rebate, and was going into non- road use. It would then he for the wholesaler, having satisfied himself regarding the evidence, to make the rebate, and afterwards claim it from the department. At the outset the companies made some attempt to do this, but they found it so difficult that by the time I took over my present position they had definitely ceased from trying to operate the provision at all. {: .speaker-JWT} ##### Mr J FRANCIS:
MORETON, QUEENSLAND · NAT; UAP from 1931; LP from 1944 -- I have been informed that the system is operating in New Zealand. {: .speaker-KFS} ##### Mr GULLETT: -- I can give only my own experience. Difficulties exist here which may not be present in New Zealand. I took the matter up with the companies, and for some time I thought that we might find a solution. In that belief I answered a question in this House some time ago stating that I was hopeful of a satisfactory settlement being arrived at. {: .speaker-KZ6} ##### Mr Lacey: -- Is there no relief possible for those who make an application for rebate ? {: .speaker-KFS} ##### Mr GULLETT: -- There has been none so far. After thoroughly exploring the problem, we hoped for a time that we should be able, not to put the rebate scheme into operation, but to substitute for it an equivalent bounty of 2d. a gallon. This bounty was to be paid direct by the department to applicants producing satisfactory evidence that they had not used the petrol on the roads for motor vehicle propulsion. I am sure, however, that the committee will recognize the extraordinary difficulties of administering the provision even in that form. Most persons who use petrol in stationary engines, farm tractors, motor boats, &c, are also motor car owners. It was fairly obvious that in the operation of this rebate, or of the equivalent bounty, there would always be present an abnormal opportunity for straight-out misuse of the provision. We thought, however, that by setting up an organization which itself would probably be quite an expensive thing, we might be able to operate the system with success. Unfortunately, we then came upon a further difficulty which finally influenced us in our determination to abandon the plan altogether. That difficulty is the refining of petrol within the Commonwealth itself. The Common wealth Oil Refineries has been refining petrol in Australia for a number of years, and produces several millions of gallons each year. Moreover, within the last twelve months, in addition to the Commonwealth Oil Refineries, the Shell Company has been refining at Clyde in New South Wales. It has refined several million gallons of petrol, and put it on the market in New South Wales as Shell petrol of the same quality, and under the same description, as the imported Shell. That was the final consideration which induced the Government to place the present proposal before Parliament. In the first place, no purchaser could distinguish between the imported Shell and that refined within the country, and there was the further possibility of anomaly in the operations of the Commonwealth Oil Refineries. There exists now a considerable prospect that the local refining of petrol will be rapidly extended in Australia. Having in mind all these considerations, the Government, with the greatest possible regret, has come to the conclusion that the rebate system cannot be administered satisfactorily. {: .speaker-JWT} ##### Mr J FRANCIS:
MORETON, QUEENSLAND · NAT; UAP from 1931; LP from 1944 -- Did the Government give consideration to the scheme operating in New Zealand to-day ? {: .speaker-KFS} ##### Mr GULLETT: -- We gave consideration to the South Australian scheme. In that State a similar provision was operated down to two or three years ago, but the extraordinary developments which have taken place since then in the way of bowser distribution, and the great increase in the number of selling agencies, have complicated the position enormously. I am confident that if honorable members will take into consideration the difficulties of administering this provision, and of avoiding misrepresentation and heavy over-payment of rebates, they will agree with me that the provisions cannot be administered satisfactorily, and that the Government is now taking the right step. If this provision cannot be administered it should not be allowed to remain in the tariff schedule. The present position is hopelessly unsatisfactory, and the Government, with the greatest reluctance, has come to the decision that the provision should go. Progress reported. {: .page-start } page 248 {:#debate-66} ### COMMONWEALTH EMPLOYEES' COMPENSATION BILL {:#subdebate-66-0} #### Second Reading {: #subdebate-66-0-s0 .speaker-C7E} ##### Dr EARLE PAGE:
Treasurer · Cowper · CP -- I move - >That the bill be now read a second time. In the last Parliament a bill relating to the compensation of Commonwealth employees was dealt with by the Senate, and was introduced into the House of Representatives. The bill, however, was not passed before Parliament was dissolved. A new bill was introduced, and was passed through the Senate in February, and read for the first time in the House of Representatives. The bill provides for the compensation of Commonwealth employees according to modern ideas on that subject. It is based on the bill brought before the last Parliament, but certain alterations, to which I shall later refer, have been made. Commonwealth employees are not entitled to participate in the compensation rights under State laws, and therefore Commonwealth legislation is necessary. The present act was passed in 1912, and the bill now before the House provides for its repeal and the substitution of new provisions. The bill contains many important variations from the present law, the chief of these being: - (1) Administration to be in the hands of a Commissioner. (2) The act to apply to all employees, irrespective of salary, but to exclude naval, military and air forces. (3) Payment of increased compensation. (4) Payment of medical benefits. (5) Specified payments for certain injuries. (6) Payment of compensation for incapacity arising from industrial diseases. Under the present act questions of compensation are decided by agreement, arbitration, or by the court. In the case of death the practice is to refer questions of dependency to the court, thus causing delay and expense. Provision has accordingly been made in the bill that the act shall be administered by a Commissioner. His powers and functions are set out in Clause 6, and it is proposed that he shall determine all matters, subject to the provisions of the bill. There is, however, a right of appeal from his decision to a county court. The present act applies to all civil employees of the Commonwealth, except employees receiving more than £500 per annum. In the bill the limit of £500 has been abolished, and the bill will thus apply to all civil employees. The present law also extends to the naval and military forces, except when on active service. As the various Defence Regulations contain comprehensive provision for compensation in respect of injuries to members of the Forces, it is proposed that the bill shall not apply to them. Provision is made for the extension of the act to employees of such authorities established under the Commonwealth as are prescribed by regulation. The bill can thus be made applicable to such an authority as the Commonwealth Bank and the authority will, unless otherwise prescribed, be responsible for the payment of compensation in accordance with the provisions of the act. Under the present act, in case of death, the compensation to dependants, wholly dependent, is a sum equal to three years' earnings, subject to a minimum of £200 and a maximum of £500. The bill provides for more liberal payment and the amount of compensation will be a sum equal to 156 times the weekly pay at the time of injury, subject to a minimum of £400 and a maximum of £700. In case of total or partial incapacity, the existing law allows a weekly payment not exceeding . 50 per cent, of' the claimant's average weekly earnings, and subject to a maximum of £2. The bill provides for a payment not exceeding two-thirds of the weekly pay at the time of injury, and the maximum is increased to £3. In addition, child endowment at the rate of 5s. for each child up to fourteen years of age is to be paid during total incapacity. Increased payments may be made also - to employees under twenty-one years of age, and if their cases are reviewed after reaching twenty-one years, they may receive up to two-thirds of their probable earnings, subject to a maximum of £3 per week. This is a substantial extension, as the maximum under the present act is £1 ' per week. The present act does not prescribe payments for specific injuries. The absence of this provision makes it necessary to arrive at an agreement in each instance or go to the court. Modern compensation laws, including State acts, contain a schedule of fixed payments for specific injuries. The bill accordingly contains a schedule in keeping with modern requirements, the payments varying from £600 downwards, according to the nature of the injury. The present act contains no provision for payment of medical benefits to injured employees. The trend of modern legislation is to provide for such benefits. Provision has accordingly been made an the bill for payment of medical, surgical and hospital treatment up to £100. This payment is in addition to the compensation otherwise provided for in the bill. The bill proposes that the liability of the Commonwealth shall be limited to £700, plus medical expenses, except in the case of permanent total incapacity. It is felt that this limit should not apply in the case of an employee who has received injuries which render him totally incapable of doing any further work. It is considered that the best way to assist such an employee is by a permanent weekly payment instead of lump-sum compensation. The bill accordingly provides for a weekly payment of two-thirds of his pay, subject to a maximum of £3, without any limitation as to the period unci total liability. "When the Workmen's Compensation Act was passed in 1912 there was no Superannuation Act in existence. The latter statute was passed in 1922, and provision was made for pensions to be paid from joint contributions by the employees and the Commonwealth. Where an employee receives an injury resulting in permanent and total disablement, that employee, if a contributor to the Superannuation Fund, is entitled to a pension. If death results, his widow receives a pension of half the amount that would have been payable to the employee. In both cases a pension is also paid in respect of children under fourteen years of age. As the Commonwealth provides half of these pensions - for the majority of the present employees the Commonwealth contribution exceeds half - the Government has carefully considered what additional payments shall be made in such cases as compensation under this bill. As a result the provisions which the Government deems' equitable have been set out in clause 18 of the bill. Briefly stated, the effect of that clause is this : Where death results - (i) The widow, in addition to the pension under the Superannuation Act, will receive lump-sum compensation, according to the provisions of the first schedule, less the capitalized value of half the pension ; (ii) there is a saving clause that a minimum payment equal to half the compensation will be paid to the widow ; (iii) where the employee leaves a widow and a dependent mother, the latter will be entitled to her full share of compensation, and the widow's share will be reduced as already indicated, subject, however, to a minimum payment of 1 1 alf that share being made. In the case of permanent and total incapacity, the weekly payment to which the employee would be entitled under the first schedule is to be reduced by an amount equal to one-half of the weekly pension payable to him under the Superannuation Act. This is an important concession beyond the provisions contained in the bill that was dealt with by the Senate in the lastParliament. That measure stipulated that the full pension should be deducted. The Government has given further consideration to the matter in the meantime, and it is now proposed that only half the pension is to be deducted. When the previous bill was under consideration in the last Parliament, a discussion took place in another place on the question of industrial diseases, for which no provision had been made. As a result of that discussion, the Government gave an assurance that the matter would be investigated by the Health Department, and that, if necessary, an amendment would be made in this chamber. The whole question has since been examined by the Health Department, and the bill now contains provisions for payment of compensation to employees contracting industrial diseases. These provisions are set out in clause 10. They provide that compensation shall be payable as if the disease were a personal injury by accident. The list of diseases is contained in the second schedule. The assurance given last year has been fulfilled. The bill contains comprehensive provision for compensation to all civil employees of the Commonwealth in respect of personal injuries by accident and industrial diseases. These provisions are in keeping with the trend of modern legislation, and are very much more liberal than those of the present act. The Government considers that they should apply uniformly to all civil employees, and that the power to compensate for injuries to civil employees under any other laws of the Commonwealth should be abolished. The bill accordingly provides that such a power shall be taken away from the jurisdiction of the Public Service Arbitrator, and that the existing awards relating to accidents shall be non-effective. Similar provision is made in respect of the regulations affecting civil employees under the Defence Act 1903-1927, and the Naval Defence Act 1910-1918. Debate (on motion by **Mr. Lacey)** adjourned. {: .page-start } page 250 {:#debate-67} ### ESTIMATES, 1929-30 {:#subdebate-67-0} #### Additions, New Works, Buildings, Etc {:#subdebate-67-1} #### In Committee of Supply: {:#subdebate-67-2} #### Parliament *Proposed vote.* - £3274. {: #subdebate-67-2-s0 .speaker-C7E} ##### Dr EARLE PAGE:
Treasurer · Co wper · CP -- This amount has been included in the Estimates at the request of the President of the Senate and **Mr. Speaker,** and £2,674 is to be expended in the main building, and £600 on the refreshment rooms. This work is proposed as the result of numerous complaints regarding the system of ventilation and cooling in this building. The Chief Engineer of the Works Department and the Chief Engineer of the Federal Capital Commission have submitted reports, which were considered at a recent meeting of the Joint House Committee. Steps will be taken to carry out these works before the summer arrives. {: #subdebate-67-2-s1 .speaker-L1J} ##### Mr LISTER:
Corio -- I desire to draw attention again to the poor acoustic properties of this chamber. An honorable member who sits on a back bench, as I do, has very great difficulty in hearing the remarks of Ministers, who face the Opposition benches when they are speaking. As a matter of fact it is almost impossible to hear what is being said if any conversation is going on in the chamber. When this subject was last, brought under the notice of **Mr. Speaker,** he said that an investigation would be made to see whether anything further could be done to improve the position. I should like to know the result of that investigation. It is not. reasonable to expect members to sit at. strained attention in order to catch the remarks of the Ministers or private members who may be addressing the House. {: #subdebate-67-2-s2 .speaker-KXY} ##### Mr PERKINS:
Monaro · Eden -- Is any provision being made to extend the public seating accommodation in the chamber? Seating accommodation could not be found last evening for anything from between 60 and 100 members of the general public who were here and desired to hear the debate. That was an inconvenience not only to them, but also to honorable members and the attendants of the House, whose time is much taken up in making inquiries to see whether it is not possible to squeeze in a few more people. As' the popularity of Parliament appears to be on the increase, and people wish to hear what is being said here, it behoves us to do something to increase the accommodation, if that can be done. {: #subdebate-67-2-s3 .speaker-KZA} ##### Mr WEST:
East Sydney .- It is most unfortunate that the ventilation of the dining room and lounge of this building is so unsatisfactory. In summer time the temperature is often from 30 degrees to 40 degrees higher inside those rooms than it is outside. That could have been obviated to a large extent had proper windows been put in the building. It is quite evident that those who were responsible for the drawing of the plans did not understand much about the science of building ventilation. In my earlier life I had a good deal to do with the ventilation and equipping of buildings, and I am quite sure that had proper windows been put in the dining room, things would have been much better. It is very well known that hot and vitiated air always rises in a room. The hot air in the kitchen rises and it affects the ventilation of the rooms immediately above it. I introduced a discussion upon this subject at a meeting of the House Committee when I was a member of it, but my observations received very little attention from the presiding officers. It will be of little use for us to instal extra fans unless we provide some means of clearing the rooms of the hot air. If it is allowed to remain there the fans will simply circulate it and the atmosphere will not be appreciably cooled. If this proposed expenditure is for the purpose of making effective improvements I shall support it. The honorable member for Corio **(Mr Lister)** spoke about the acoustic properties of this chamber. Since the various openings round it have been curtained, the position has been considerably improved. There was a proposition to hang certain draperies in the galleries, but I resisted it with some heat and thereby incurred the displeasure of the presiding officer of the Senate. I sincerely trust that nothing will be done with a view to improving either the ventilation of the dining-room or the acoustics of this chamber until expert advice has been obtained. {: #subdebate-67-2-s4 .speaker-KF9} ##### Mr A GREEN:
KALGOORLIE, WESTERN AUSTRALIA · ALP; FLP from 1931; ALP from 1936 .- The billiard-room is like a sweat-box in the summer. I should like to know whether there is any means of ventilating it from the top. If there is, it does not appear to be used. {: #subdebate-67-2-s5 .speaker-KJM} ##### Mr JACKSON:
Bass .- We should go to the root of the trouble. The difficulty is that the boiler-room is immediately underneath the members' lounge. That cannot be overcome by merely increasing the number of fans. We ought to go into the question of the practicability of removing the boiler-room altogether. I am aware that this is termed a provisional Parliament House, but it seems to me that it will become permanent. {: #subdebate-67-2-s6 .speaker-KAY} ##### Mr GIBSON:
PostmasterGeneral and Minister for Works and Railways · Corangamite · CP -- I understand that the Joint House Committee and the engineers have been in consultation upon this subject, and that the work proposed to be done is recommended by them. The proposal is to instal a better cooling system in the portion of the building to which reference has been made. {: #subdebate-67-2-s7 .speaker-JOM} ##### Mr BEASLEY:
West Sydney -- I am a member of the House Committee, and, to the best of my recollection, although this subject was discussed by it. no finality was reached. A decision was deferred pending the receipt of additonal information from the engineers. From my experience in the electrical industry, I am certain that our electric motors are considerably overloaded. They may at any time break down and cause serious trouble. The conditions under which the engineering employees in this building have to work - those engaged in work associated with the heating and ventilation plant - are most unsatisfactory, and injurious to health. Some of the members of the industrial organization to which I belong, the electrical trades, are employed on this work, and on several occasions I have interviewed them on the subject. I know, therefore, from personal contact with them, as well as from medical men in our party, that their working conditions are unsatisfactory. I trust that something will be done to remedy this unsatisfactory state of .affairs, and also that the provision made on these Estimates will provide -for an electrical installation which will remove the danger of overloading that now exists. {: #subdebate-67-2-s8 .speaker-KYH} ##### Mr PRICE:
Boothby .- Under the existing, financial conditions we should be thoroughly satisfied that this expenditure is warranted before we agree to it. E am told that this is merely a provisional Parliament House, and that the Government is very anxious to proceed with the building of the permanent structure upon the hill at the rear of this building. {: .speaker-KEV} ##### Mr Fenton: -- There is no chance' of that. {: .speaker-KYH} ##### Mr PRICE: -- Whether that is so or not, it seems to me that this money could be spent to much better purpose in other directions. " {: .speaker-009FQ} ##### Mr Curtin: -- The money has already been spent. {: .speaker-KYH} ##### Mr PRICE: -- I did not know that. {: .speaker-KJM} ##### Mr Jackson: -- I should like to know definitely whether the money has been spent. {: .speaker-KYH} ##### Mr PRICE: -- If so, we are wasting our time in discussing the subject. I contend that we ought to be given an opportunity to consider such items before the expenditure is incurred. The Government has had a good deal to say about the necessity for economy. I suggest that it should begin to practice economy at home, and not expect the workers of this country to set an example in that direction. I do not propose to vote for this item until I am satisfied that the expenditure is necessary. {: #subdebate-67-2-s9 .speaker-C7E} ##### Dr EARLE PAGE:
Treasurer · Cowper · CP -- This item is on the Estimates as the result of the representations of the Joint House Committee, and if honorable members object to it, they may remove it from the Estimates. It is a matter not for the Government, but . for this Parliament to decide. {: .speaker-KJM} ##### Mr Jackson: -- Has any of the money been spent? {: .speaker-C7E} ##### Dr EARLE PAGE: -- No. Proposed vote agreed to. {:#subdebate-67-3} #### Departmentof Home Affairs {:#subdebate-67-4} #### Proposed Vote- £33,000 {: #subdebate-67-4-s0 .speaker-KEV} ##### Mr FENTON:
Maribyrnong -- I think that, the erection of the war memorial at Canberra might very well be delayed. I say that without any disrespect to our returned soldiers and patriotic citizens. In practically every constituency postal facilities are long overdue. Postal works are reproductive, but recommendations for the construction of . new buildings are invariably turned down by the central office, the excuse being that no funds are available. Surely we could expend £30,000 on more useful works than a war memorial at Canberra. I do not think that anyone can lay the accusation at my door that I have ever been adverse to perpetuating the memory of those who sacrificed their lives for us during the Great War, but in these days of so-called re-organization and the retrenchment of staffs, the proposed expenditure of £30,000 might very well be deferred. I therefore make my protest against this item remaining on the Estimates. {: #subdebate-67-4-s1 .speaker-K07} ##### Mr COLLINS:
Wakefield -- I support the remarks of the honorable member for Maribyrnong **(Mr. Fen ton).** I represent an electorate which probably contains' more returned soldiers than any other electorate in Australia. I am as loyal, first to Australia and then to the British Empire, as any man in this community; but I contend that at this juncture, when the Government has serious financial problems to face, it would be absolutely wrong to spend this money on the erection of a national war memorial. I recently attended a large gathering of returned men at a town in my constituency. This subject was discussed, and every returned soldier who was present took strong exception to this proposed expenditure at a time of financial stress. The item could well be postponed. {: #subdebate-67-4-s2 .speaker-L1T} ##### Mr YATES:
Adelaide .- I oppose this item of expenditure. No one can reasonably accuse me of lack of appreciation of the efforts of our soldiers overseas. I was there ; and those who took part in the war naturally have a greater appreciation of the hardships that were suffered by our men than those who stayed at home. This item meansa bigger expenditure than is indicated on these estimates. The proposed expenditure of £30,000 is really the forerunner of an ultimate cost of £250,000. Had we money to burn I should not object to the erection of a national memorial. But nearly every little hamlet and village in Australia has its local war memorial, and the people of Australia have not been lacking in the expression of their appreciation of the sacrifices of those who fought overseas. I appreciate architecture and works of art. To a great extent the people of , Australia are losing sight of the need for architectural beauty in our public buildings. The **CHAIRMAN (Mr. Bayley).The** honorable member's remarks are not in order. {: .speaker-L1T} ##### Mr YATES: -- Surely I am entitled to express my views about Canberra. {: #subdebate-67-4-s3 .speaker-10000} ##### The CHAIRMAN: -- On the particular item before the chair, the honorable member is not in order in discussing that subject. {: .speaker-L1T} ##### Mr YATES: -- The item deals with a proposed expenditure at Canberra, and I am giving my reasons for objecting to it. The memorial is to be erected at the foot of **Mr Ainslie** in honour and in appreciation of our heroes who sacrificed their lives overseas. That means that most people in Australia will never see it. It would be a farce to erect this building, in view of the present state of the finances. It would be of infinitely more service ifthe money were expended in relieving the sufferings of those who were disabled at the war. Many of our returned soldiers today are being turned out of war service homes because they cannot meet their commitments. It would be better to give these men free homes than' to expend £250,000 upon a memorial at the foot of Mount Ainslie. The returned soldiers are entitled to more consideration than they are getting from this Parliament. Those who during the war stayed at home and invested their savings in war loans, are drawing interest to the amount of £18,000,000 per annum, yet it is costing this country only £8,000,000 for pensions to our warracked heroes. We can never recompense our returned soldiers for their sacrifices on our behalf. I believe that if the people of Australia were appealed to, they would insist on our tubercular soldiers being given attention that would, enable them to live in comfort during the few short years of life remaining to them. When these men enlisted they were the flower of the manhood of Australia. Had the war not intervened we must assume that they would have been able to at least earn the basic wage. {: .speaker-10000} ##### The CHAIRMAN: -- The honorable member must not develop that argument further. {: .speaker-L1T} ##### Mr YATES: -- I am giving my reasons for opposing the expenditure of £30,000 on the war memorial, and I am showing that the money could be better spent in other directions. {: .speaker-10000} ##### The CHAIRMAN: -- I cannot permit, the honorable member to develop that line of argument. {: .speaker-L1T} ##### Mr YATES: -- How can I oppose this item without stating grounds for my attitude? Will you, **Mr. Chairman,** inform me what argument I may use to conform with your ruling? My remarks are being circumscribed and for me it is a rather i ncongruous position. {: .speaker-10000} ##### The CHAIRMAN: -- The remarks of the honorable member for Adelaide **(Mr. Yates)** have not been circumscribed. He has been given ample latitude. He has stated at some length his view that the money could be better used in benefiting returned soldiers. {: .speaker-L1T} ##### Mr YATES: -- I am afraid we shall have to agree to differ. I have put the position as I see it. The proposed expenditure should not be authorized. I am opposed to it for the reason, among others, that the great majority of the people of Australia will not have an opportunity to visit the memorial in Canberra. The scheme may be very fine in conception, but I should like to see the memorial erected in either Sydney or Melbourne, or, better still, in Adelaide, the most beautiful city in the Commonwealth. I take off my hat to the Australian soldiers for what they did in the war, and so long as I live I shall be willing to expend the last ounce of my strength in securing adequate recompense for all war-racked ex-service men. I make a distinction between the man who is now suffering some disability as the result of the war and the ex-soldier who is in the enjoyment of robust health. I hope I shall never find it necessary to make any claim on the Commonwealth for war disabilities that may assail me in later years, but I know that there are many thousands of our returned men who are in urgent need of financial aid. I trust, therefore, that before we sanction further expenditure on the war memorial at Canberra, every returned soldier will be amply requited for the sacrifices he made on behalf of Australia during the war. When we have met all demands upon the Commonwealth in this respect,we may feel at liberty to think about spending a quarter of a million upon a war memorial in Canberra. {: #subdebate-67-4-s4 .speaker-KVU} ##### Mr THOMPSON:
New England -- I wish briefly to support the proposal of the Government to proceed with the erection of the war memorial in Canberra. I took this stand in the last Parliament, and I see no reason now to change my view. This work will have to be undertaken sooner or later. I cannot subscribe to the opinion that appears now so prevalent, that the financial position of the Commonwealth is such as to warrant the discontinuance of expenditure on the national war memorial. After all, the amount involved is inconsiderable when one considers the importance of this proposed great national tribute to the Australian soldiers who fell in the Great War. The Government cannot be charged with extravagance in providing £30,000 as a commencement. To me, the amount seems somewhat inadequate for a start. I am afraid it will give the people the impression that the idea is to proceed with the work at a snail's pace. I should like, to see the memorial completed within the next two or three years. The expenditure provided for in these estimates is so small that I fear there is no immediate intention of pushing on with this urgent national work. I regard it as urgent, because it is now ten years since the war ended, and it is time that Australia fell into line with the other belligerent nations and erected a worthy memorial to those thousands of men who gave their lives for this country in that great conflict. If we abandon this project now, we shall suggest to the world that the financial position of Australia is so unsatisfactory as to render it inadvisable to proceed with this important national expression of the ideals and traditions of our people. The figures placed before honorable members this afternoon by the Treasurer **(Dr. Earle Page)** do not indicate that, in a financial sense, we are up against insuperable difficulties. A total expenditure of £250,000 on the memorial is extremely moderate. If we can get a really worthy memorial for that sum we shall be doing very well indeed. In my opinion, the amount mentioned should not represent the total expenditure that should be authorized. If the Government's policy is to complete the memorial up to a certain stage for £250,000, and then, when the finances of the Commonwealth improve, to authorize further expenditure, the proposal, I am sure, will meet with the approval of the people of this country. Those honorable members who are urging a general curtailment of what they term unnecessary expenditure on a National Memorial are carrying their objection a little too far. If we do as they suggest, we shall place Australia in a false position, because Ave shall be creating the impression that this country is in for a long period of financial depression. So far as I can see, our financial troubles are likely to be merely temporary. I agree, of course, that in setting aside £30,000 as a first instalment the Government is acting wisely. It may be desirable to go slowlY for this year, but if we make a false gesture by examining critically the proposal to erect a National Memorial, we shall give the people the idea that Ave have gone cold on our war time sentiment and do not wish to be bothered Avith further expenditure upon any project calculated to remind us df all that happened in the war years. I strongly urge the Government to go ahead with the scheme. I am sure it will turn out right in the end. If this expenditure is' authorized now, Ave shall have no further protests concerning the general proposal, and when the memorial is completed it will act as a magnet, attracting a large number of tourists to Canberra. From this point of view it may be regarded as an important national asset, apart altogether from its sentimental value. The honorable member for Adelaide **(Mr. Yates)** has urged that Ave should discontinue all expenditure on ornamental buildings in Canberra for some time, at all events. There might, be something to say for that policy if our finances were really in a hopeless state; but they are not, and we should remember also that already the Commonwealth has been involved in the expense of £12,000,000 in establishing this capital city, so we cannot very well go back. Our purpose now should be to so improve and beautify this city, both from a residential viewpoint, and from the tourists' viewpoint, to attract any increasing number of visitors to Canberra. Nothing is likely to prove more attractive than this magnificent National War Memorial. I feel sure that when it is finished it will draw tens of thousands of visitors to this city. {: #subdebate-67-4-s5 .speaker-KYV} ##### Mr E RILEY:
SOUTH SYDNEY, NEW SOUTH WALES · ALP -- I am surprised that the honorable member for Adelaide **(Mr. Yates)** should have deemed it necessary to raise objection to this proposed expenditure on the National War Memorial in Canberra. But the honorable member is rather late. The proposal has been before the' House on former occasions. It was referred to the Public Works Committee some time ago for inquiry and report. That body made its inquiry and furnished a report to this House. The contract for the foundations has been let, and already a considerable amount of building material has been accumulated on the site. The memorial is necessary for the housing of hundreds of thousands of pounds worth of war exhibits which, are stored in rented buildings in Sydney, Melbourne and elsewhere. It is the plain duty of this Parliament to authorize expenditure on a memorial, so as to provide, without delay, ample accommodation for the vast accumulation of war exhibits now in possession of the Government. The memorial will, as the honorable member for New England **(Mr. Thompson)** has said, attract large numbers of tourists to Canberra. It is only right, therefore, that there should be as little delay as possible in carrying out the work. I do not take the view that our financial position is so unsatisfactory as to render further delay necessary. In any case, the memorial will provide work for a large number of men. The honorable member for Adelaide **(Mr. Yates)** should not object to that, and there should be no objection to the scheme on the ground that the memorial is to be erected in Canberra. The Government is to be congratulated for having made provision in these estimates for the work to be commenced. I hope also that the work will be proceeded with as expeditiously as possible, so that soonwe shall have a memorial worthy of the men who went overseas and gave their lives for their country. {: .speaker-L1T} ##### Mr Yates: -- I rise to a personal explanation. The honorable member for South Sydney **(Mr. E. Riley)** suggested just now that I was opposed to the creation of work for the unemployed. I do not wish any such mis-statement of my views to appear in *Hansard* without comment from me. I am as anxious as any other honorable member that work should be provided for our people. All that I am urging is that it should be work of a reproductive character, because I wish to see our people profitably engaged, rather than employed on schemes that will not return interest on capital expenditure. *Sitting suspended from 6.15 to 8 p.m.* Progress reported. {: .page-start } page 255 {:#debate-68} ### QUESTION {:#subdebate-68-0} #### EMPIRE FOREIGN RELATIONS A nglo-Egyptia n The ay of Alliance - Resumption of Diplomatic Relations with Soviet Republics - Reparations. {: #subdebate-68-0-s0 .speaker-F4B} ##### Mr BRUCE:
Prime Minister and Minister for External Affairs · Flinders · NAT *.- (Byleave)-* While the Parliament has been inrecess several matters of major importance in relation to the foreign affairs of the Empire havebeen under the consideration of the Government. These matters have assumed a considerable degree of prominence, and last week I indicated that I would take the earliest occasion to make a statement regarding them, and would afford the House an opportunity to discuss them if it desired to do so. The three matters to which I propose to refer are the contemplated Anglo-Egyptian Treaty of Alliance, the proposed resumption of diplomatic relations with the Soviet Republics and reparations; taking them in that order. Honorable members will know, from what they have read in the newspapers, that recently the British Government has been negotiating with the Prime Minister of Egypt for an Anglo-Egyptian Treaty of Alliance to settle outstanding matters at issue between Great Britain and Egypt. Those negotiations have gone a considerable distance, and certain heads of agreement have been submitted to the Egyptian Prime Minister, who proposes to put them before the Egyptian Parliament in an endeavour to secure its acceptance of them, and, if that happens, the negotiation of a treaty based on those heads will be proceeded with. Two most satisfactory events have occurred this year concerning the relations of the British Government and Egypt : the settlement of certain outstanding financial matters, arrived at in February last, and the completion of an agreement in May in relation to the controversial subject of the utilization of the Nile waters. Last month advantage was taken of the visit of the Egyptian Prime Minis.ter to Great Britain to resume the negotiations for a treaty which were broken off in 1928. These had been conducted between **Sir Austen** Chamberlain, on behalf of the British Government, and Sarwat Pasha, the then Prime Minister of Egypt, but the proposals arrived at were rejected by the Egyptian Parliament. The negotiations were resumed with Mahmoud Pasha, the present Prime Minister of Egypt, on a basis very similar to that on which they were conducted in 1927, and in a paper, which I shall lay on the table, is the note which was addressed by the Secretary of State for Foreign Affairs in Great Britain to Mahmoud Pasha, indicating the lines upon which, the British Government was prepared to negotiate a treaty. These differ from the former basis in. regard to a matter in which Australia has the greatest interest, the protection of that great artery of Empire communications, the Suez Canal. Under the negotiations of 1927, for a period of ten years the British forces in Egypt were to continue to be located at the discretion of the British Government in Cairo or Alexandria, or in any other part of Egyptian territory that the British Government might determine. In the present note it is proposed that the British forces shall be withdrawn from those two great cities, and located on the Canal. Further, in 1927 it was contemplated that the British forces would remain, in Egypt proper, if I may use that term, for a period of ten years, and then if no agreement concerning them could be arrived at by the two Governments, the matter should be referred for determination to the League of Nations. The present proposal for the withdrawal of the British forces to the Suez Canal involves two questions of major importance. One is of the greatest moment to Australia, namely, whether the Suez Canal can be adequately defended by British troops stationed on the Canal itself. The second matter, although also of interest, is not of such great concern to the Commonwealth in particular; it is the protection of foreigners in Egypt when the British troops have been withdrawn from Cairo and Alexandria. In the note it is proposed that after the treaty has been consummated, the responsibility of the British Government for the protection of foreigners in Egyptian territory shall be taken over completely by the Egyptian authorities; but of course many problems would arise if the Egyptian authorities were not, in fact, able to carry out their obligation to protect foreigners within the territory. That question, however, *vis a vis* the Empire is one primarily for the determination of the British Government; in the protection of the Suez Canal Great Britain, Australia and New Zealand are, I think, equally concerned. These matters have been referred by the British Government to the Governments of the dominions and full consultation has taken place regarding the proposed agreement, although, with the exception of Australia and New Zealand, the dominion governments are not greatly interested. The Commonwealth Government recognizes the necessity for some settlement of these matters. We agree that it is necessary to attempt to arrange some basis for an alliance between Great Britain and Egypt by which the questions outstanding between them will be definitely settled once and for all. But, whilst expressing our appreciation of the desire of the British Government to arrange such an alliance, we have made it clear that no treaty would be acceptable to Australia which did not adequately and absolutely safeguard the Suez Canal. That, I think, is, speaking generally, the opinion of the whole people of Australia, irrespective of their political differences on other matters. The position has been investigated, and the view of the British Government is that the proposal for the withdrawal of its troops to the Suez Canal area will adequately ensure the protection of the Canal. It is further proposed in the note that, in the event of war or threat of war, the British authorities shall receive every assistance from the Egyptian authorities, and that all railways, communications, aerodromes, and other facilities shall be made available to the British authorities by the Egyptian Government. Moreover, it will be competent for the British Government to increase it3 forces in Egypt to any extern it thinks necessary. During the period of peace, with no threat of war, the British troops are to be located on the Canal; but it will be within the discretion of the British authorities to determine the strength of the force to be kept there. The British Government is quite satisfied that adequate provision for the protection of the Canal is assured under the heads of agreement submitted, but the Australian Government is not yet completely satisfied on the point. We are prepared to acquiesce in the making of a treaty; but only subject to our final determination that the provision for the protection of the Canal is absolutely satisfactory and adequate. {: .speaker-KYV} ##### Mr E RILEY:
SOUTH SYDNEY, NEW SOUTH WALES · ALP -- Suppose the Commonwealth Government did not consider the provision adequate? {: .speaker-F4B} ##### Mr BRUCE: -- I ask honorable members opposite not to raise difficult questions at the present time. To do so would not render service to Australia. At present we have only the heads of agreement for the negotiation of a treaty. {: .speaker-JSC} ##### Mr Brennan: -- This emphatic language is rather challenging. {: .speaker-F4B} ##### Mr BRUCE: -- The British Government, unlike the honorable member, takes a wise and reasonable view of the situation. {: .speaker-JSC} ##### Mr Brennan: -- Why does the right honorable gentleman say that? {: .speaker-F4B} ##### Mr BRUCE: -- Because I think it obvious that the attitude of the honorable member is neither intelligent nor helpful. The British Government appear?* to have *a* wider vision, and is prepared to discuss these matters with the Australian Government before any treaty is arrived at, so that the interests of the Empire may be properly conserved. I suggest that in any discussion that may take place on the papier which I am. about to lay on the table it, is undesirable that anything should be said which might embarrass the negotiations that are proceeding. This Government will not acquiesce in regard to proposals for any treaty unless we are satisfied that Empire communications through the Suez Canal, which are of vital interest to Australia, are adequately safeguarded. {: .speaker-KYI} ##### Mr Prowse: -- When do the arrangements governing the control of the Canal expire ? {: .speaker-F4B} ##### Mr BRUCE: -- The Suez Canal is owned by a company in which Great Britain is the predominant shareholder. {: .speaker-KYV} ##### Mr E RILEY:
SOUTH SYDNEY, NEW SOUTH WALES · ALP -- Does Australia hold any shares in the company? {: .speaker-F4B} ##### Mr BRUCE: -- No. Great. Britain's shares were acquired when Disraeli was at the head of its affairs. Their purchase was one of the greatest acts of statesmanship of recent times. The ownership of the canal, however, does not, in itself, safeguard Empire communication through it. The paper that I propose to lay upon the table merely embodies a note that has been addressed by the British Government to the Egyptian Government, setting out the heads of the agreement which, in due course, will be submitted to the Egyptian Parliament for its consideration. The second matter on which I desire to speak is the resumption of diplomatic relations between the' British Government and the Union of Soviet Socialist Republics. This matter was taken up two or three months ago by the British Government, and fairly full reports of the negotiations have appeared in the press. It will be recollected that in February, 1924, just after a previous Labour Government had come into power in Great Britain, diplomatic relations were resumed with the Soviet authorities, and ambassadors were exchanged between the two countries. Those relations continued until 1927, when, as a result of a raid upon the premises of a Soviet trading company in Great Britain, documents were obtained which showed that that trading activity was in reality a centre for the dissemination of Bolshevist propaganda in Great Britain. The British Government, which had the support of the British Parliament in its action, thereupon promptly severed diplomatic relations with the Soviet authorities, the British ambassador being recalled, and the Soviet ambassador being asked vo leave Great Britain. On the 24th June last the matter was again taken up by the present Labour Government of Great Britain. It advised the Dominion Governments that it proposed to enter into negotiations with the Soviet- Government with a view to relations being resumed . between the Soviet and Great Britain. Our reply to the cablegram of the British Government was that we fully recognized that the existingseverance of relations between the two countries could not continue indefinitely, that we were completely in sympathy with the proposal that negotiations should be opened with a view to the resumption of diplomatic relations, but that we held strongly the view that before that could happen certain outstanding questions must bo settled. We particularly stressed the view that definite action should be taken to prevent the diplomatic representation of the Soviet Government from being made the medium for the dissemination of propaganda in British territory, and we indicated that unless satisfied that there were safeguards against the dissemination of Bolshevist propaganda in Australia, we should not be prepared to receive a representative of the Soviet Government. That view was generally acquiesced in by the British Government, which indicated that, before resuming diplomatic relations, it proposed that there should be a settlement of outstanding questions, such as those relating to the debts owed to Great Britain. The British Government stated that it proposed to approach the Soviet Government on that basis. On the 12th July last we were advised that His Majesty's Government in Great Britain had approached the Norwegian Government with the request that its representative in Russia should- open up negotiations with the Soviet Government with a view to the resumption of diplomatic relations. The Note despatched through the Norwegian representative at Moscow was dated the 15th July, and was couched in the following terms. His Majesty's Government in the United Kingdom have carefully considered the existing state of relations between this country and the Union of Soviet Socialist Republics, and aru prepared to re-establish the normal machinery of diplomatic relations between Great Britain and the Union of Soviet Socialist Republics, on the understanding that the reciprocal rights and duties which international law recognizes as incumbent on States in their relations with one another subsist between this country and the Union of Soviet Socialist Republics. To this end His Majesty's Government invite the Government of the Union of Soviet Socialist Republics to send a responsible representative to London in order to discuss with the Foreign Secretary direct the most expeditious procedure for reaching as rapidly as possible a friendly and mutually satisfactory settlement of the outstanding questions between the two countries, including those relating to propaganda and debts. On the 24th July, the Soviet Government delivered the following reply to His Majesty's Government in Great Britain, through the Norwegian representative at Moscow - >The Government of the Union of Soviet Socialist Republics note the communication from tlie British Government that they are willing to re-establish diplomatic relations with the Union of Soviet Socialist Republics, of which the interruption was not in consequence of the fault or the desire of the Government of the Union. The Government of the Union welcome this proposal in the interests of both countries find of the cause of peace. The Government of the Union consider it necessary that there shall be established, as soon as possible, lasting agreement regarding the disputed questions, and believe that such a lasting agreement can only be attained through both parties being treated as having equal rights, and by the maintenance of reciprocal dignity and esteem. > >The Government will assume the rights and duties of States in diplomatic relations between them as soon as the British Government takes upon itself these rights and duties. In view of the fact that the note from the British Government aims at the preliminary exchange of views, exclusively regarding tlie procedure to be followed in the subsequent discussion of the disputed question, and not an actual discussion of these questions, and being of the opinion that these deliberations regarding procedure can be concluded in the course of a very short period, the Government are requesting Monsieur Dovgalevski, plenipotentiary representative of the Union in France, to journey to London for this purpose. On receipt of that note, the Soviet representative in France was invited to visit London. He did so, and conversations were held between him and **Mr. Arthur** Henderson, the British Foreign Secretary, on the 29th and the 31st July. Those negotiations were of a personal character. The British Government offered to resume diplomatic relations on tlie basis that there should be a preliminary discussion of outstanding questions, such as the debt and the manner in which the propaganda which unquestionably had been carried on in the past could be prevented. Unfortunately, the powers conferred upon the Soviet representative did not allow him to conduct negotiations along those lines. The attitude of the Soviet Government was that there should be an immediate resumption of diplomatic relations and an exchange of diplomatic representatives. **Mr. Henderson** made it perfectly clear that the British Government was not prepared to resume negotiations with, the questions I have mentioned still outstanding. He contended that the solution of those questions should precede the resumption of diplomatic relations and the exchange of ambassadors, and pointed out that it was his hope that the discussion could take place during the parliamentary recess which was then about to commence, so that he might be. in a position to give to the British Parliament when its sittings were resumed a definite indication of the basis upon which it was proposed to resume diplomatic relations between the two countries. He also made it clear that before relations were resumed and ambassadors exchanged, the British Government would submit, or at all events report, the matter to Parliament. That view was entirely unacceptable to the representative of the Soviet Government, who clearly had no power to negotiate on such a basis. The matter was determined by a note addressed by Monsieur Dovgalevski to the British Government on the 31st July in the following terms: - >The Government of the Union of Soviet Socialist Republics have done everything on their side to facilitate rapprochement between the Union and Great Britain and the resumption of normal diplomatic relations between the two countries. The fact, however, that the British Secretary of State for Foreign Affairs has stated to Monsieur Dovgalevski, the Soviet Ambassador to France, that it is impossible for the British Government to re-establish normal relations between the two countries before a solution of the questions outstanding between them shows that the British Government do not desire or are unable to bring about the resumption of these relations. If "such were not the case, the British Government would not have proposed, as a preliminary condition for the re-establishment of normal relations, the solution of questions so complicated and contentious as mutual claims and counter claims. This new circumstance, which was not foreshadowed by the note from the British Government addressed to the People's Commissariat for Foreign Affairs on the 17th Inly, requires a fresh examination of the question. For that reason, the People's Commissariat for Foreign Affairs finds itself compelled to ask for fresh instructions from the Praesidium of the Central Executive Committee of the Union, which will consider the new proposal of the British Government at its next plenary session. There the matter has ended for the time being. As there is no indication as to when the meeting of the Praesidium of the Central Executive Committee of the Union will take place, it must be assumed that negotiations have been temporarily suspended. {: .speaker-KEV} ##### Mr Fenton: -- The Soviet Republic is a very good wool-buyer. {: .speaker-F4B} ##### Mr BRUCE: -- It is quite easy to understand that the honorable member has considerable sympathy with the Soviet Government; but it would be an admirable thing if in these matters honorable members opposite possessed a little of the common-sense of the Labour Government of Great Britain. The third matter is the subject of the German reparation payments, which has assumed considerable importance by reason of the recent attempt of the nations concerned to arrive at a definite settlement of this very difficult and complicated problem. On the 16th September, 1928, representatives of the British, German, French, Belgian, Italian, and Japanese Governments agreed, at a meeting held at Geneva, that it was desirable that an attempt should be made to overcome some of the existing reparation difficulties, with a view to arriving at a final and satisfactory settlement of the whole matter. It was agreed that a- committee of financial experts should be nominated by these six Governments, and in the course of further conversations among representatives of those Governments, it was considered desirable that representatives of the United States of America, should be invited to sit upon the committee, which was to meet in Paris at the earliest possible date, its conclusions to be reported to the Governments concerned and to the Reparations Commission. The United States of America agreed to its citizens acting on the committee, and the first meeting of the committee was held in Paris on the 11th February, **Mr. Owen** Young, one of the representatives of America, being made its chairman. The committee was entirely a committee of experts, nominated by their Governments; it was not a committee of representatives of Governments, nor were its conclusions binding on the Governments concerned. {: .speaker-DQC} ##### Mr Hughes: -- Was that committee working on the Dawes plan ? {: .speaker-F4B} ##### Mr BRUCE: -- The Spa agreement of 1920, as modified by the Dawes' plan of 1925, was the basis of the deliberations of the committee. Its deliberations were protracted, and, although no official reports were issued, unofficial reports began to appear in the press, one of which clearly indicated that provision was being made for an alteration of the annuities payable by Germany. It was further indicated that the variation of percentages would mean a diminution of the amount received by the British Empire. Under the modified Spa agreement the distribution was as follows: - The British Empire's share of 23.1 per cent. is distributed in this manner - Upon the publication ' of those unofficial reports, the Commonwealth Government cabled to the British Government indicating that, without having before it any official information with regard to the reports of the experts who were in conference, it could not express any views upon any proposals that the committee might have in contemplation as to the diminution of the annuities payable by Germany; but would be prepared to consider the matter when the facts were placed before it. The cablegram stated further that we were disturbed by the suggestion that there might be a departure from the existing basis of distribution, and strongly urged that no agreement should be arrived at which countenanced the diminution of the British Empire's proportion of the annuities as fixed by the modified Spa agreement. On the 9th May, the then Chancellor of the Exchequer **(Mr. "Winston Churchill)** made a statement in the House of Commons to the effect that the conclusions of the Committee of Experts did not commit His Majesty's Government, which remained entirely free to review the whole position, and to make its own decision upon the recommendations of the committee when published. He further stated that the British Government was not prepared to acquiesce in any proposals for the future distribution of annuities which meant a reduction of the percentage to bo received by Great Britain. {: .speaker-JZK} ##### Mr Coleman: -- Were the conclusions arrived at by the Committee of Experts unanimous? {: .speaker-F4B} ##### Mr BRUCE: -- Yes. On the 7th June the Committee of Experts presented its report. I do not propose to weary the House by giving its proposals in detail. They are embodied in the paper which I shall lay upon the table, but I wish to direct some remarks to the contemplated reduction of Great Britain's share. The report, as perhaps was natural, was accepted by Prance, that country receiving a considerable increase in its percentage under the new proposals. Germany accepted the report as a basis for negotiation and discussion, and a conference was summoned to discuss the matter. It met at the Hague on the 5th August of this year. {: .speaker-JOM} ##### Mr Beasley: -- What was the proposed reduction in the percentage payable to Great Britain? {: .speaker-F4B} ##### Mr BRUCE: -- Great Britain would receive approximately £2,500,000 less per annum. {: .speaker-JWT} ##### Mr J FRANCIS:
MORETON, QUEENSLAND · NAT; UAP from 1931; LP from 1944 -- What was the amount agreed to at the Spa and the 1925 Paris conferences, and what is the proposed amount? {: .speaker-F4B} ##### Mr BRUCE: -- It would take too long to give the honorable member such details, but I shall state the substance of the arrangements. There are various recommendations on which I need not elaborate, but the re-allocation of the percentages would mean a yearly loss to Great Britain of about £2,500.000. {: .speaker-JZK} ##### Mr Coleman: -- What percentage diminution does that represent? {: .speaker-F4B} ##### Mr BRUCE: -- Under the existing agreement, the British Empire receives 23.1 per cent. of the total annuities paid by Germany. I cannot give, off hand, the percentage reduction, but the yearly reduction is about £2,500,000. The total German annuities are fixed as follows: - The conference which met on the 5th August appointed financial and political sub-committees, which have been considering the report of the experts. The Commonwealth Government has requested His Majesty's Government to represent it at the earlier stages of the conference. The attitude of the representative of the British Government, the Chancellor of the Exchequer **(Mr. Phillip Snowden).** has been a definite one, with which we in Australia entirely agree. He stipulates that there shall be no reduction of the percentage of annuities which the British Empire receives under the existing agreement. Great Britain does not challenge the total amount to be paid, the conditions of payment or the establishment of an international bank, as recommended by the Committee of Experts. It objects, however, to the basis for the distribution of the annuities proposed, and to the size of the French share of the unconditional annuities, which amounts to £24,500,000 out of a total of £33,000,000. There are two classes of payments, unconditional annuities and conditional annuities. But, instead of delaying the House with a lengthy dissertation on the subject, I shall ask honorable members to examine that aspect of the matter for themselves by a perusal of the papers. The British Government takes strong exception to the amount of the payments in kind, which in the past have had a very disastrous effect upon British trade, and strongly urges the increased reduction of, and the speedier abolition of deliveries in kind, especially coal. The deliberations at the Hague Conference, which started on the 5 th August, have centred on **Mr. Snowden's** objection to the proposed reduction of the payments to the British Empire by about £2,500,000 ayear. If this reduction were effected, Great Britain's share of the reparations would equal only the amount required each year by the Government of Great Britain to meet its future obligations in the way of debt repayments to the United States of America. If the payments are reduced as contemplated, the result will be that Great Britain will have no hope of recouping herself for the £180,000,000 or £200,000.000 which she has already paid to the United States of America in settlement of her war debt obligations, over and above anything she has received in the way of payments from her own debtor nations, or by way of reparations. {: .speaker-JZK} ##### Mr Coleman: -- Did the experts advance any reasons in support of this proposed reduction? {: .speaker-F4B} ##### Mr BRUCE: -- Yes; very full reasons were offered. It would be expensive to have the report printed and circulated, but I shall lay it on the table so that, it may be available to any one who is interested in the subject. The British Government is fighting this battle very strenuously, and I believe that the people of Australia have every sympathy with it, and are prepared to offer it all possible support. {: .speaker-DQC} ##### Mr Hughes: -- What would this revised scheme, if given effect, mean monetarily to Australia ? {: .speaker-F4B} ##### Mr BRUCE: -- It -would not mean any financial loss to Australia. The; British Government has stated that, if the proposals are agreed to, and the reductions brought about, Britain will bear the whole loss herself, and will not ask other parts of the Empire to accept a proportionate reduction of their reparation payments. For the information of honorable members I now lay on the table - >Anglo-Saxon Treaty - Proposed details. > >SovietUnion - Proposals for resumption of Diplomatic Relations with the British Empire. Reparations - Conclusions of . Experts' Committee,1929 I move - >That the papersbe printed. Debate (on motion of **Mr. Bkennan)** adjourned. {: .page-start } page 261 {:#debate-69} ### QUESTION {:#subdebate-69-0} #### ESTIMATES, 1929-1930 Additions, New Works, Buildings, Etc *In Committee of Supply* - Consideration resumed *(vide* page 255). Department of Home Affairs *Proposed vote,* £33,000. {: #subdebate-69-0-s0 .speaker-KZR} ##### Mr WHITE:
Balaclava .- This is, perhaps, not the time, following upon an all-night sitting, to do justice to a subject which I feel is almost sacred. I cannot remain silent, however, while there is any danger that the project to build the Australian National War Memorial in Canberra may be abandoned. With all due deference to those honorable members who this afternoon opposed the building of the memorial, I feel that they have not a sufficiently lofty conception of what the memorial stands for. It will not represent merely so many tons of marble or brick; the spiritual significance of this shrine, if it is to have any significance at all, is that it will typify the spirit of sacrifice. We are all prepared to admit that the memorial is essentially a tribute to those soldiers who lost their lives at the war. Their names, and theirs only, will be engraven upon it.It is to them that we luckier ones, we who did come back, those who were not able to go, and those who profited and cheered, should pay tribute. It is our duty to see that they are not forgotten. It will be contended, perhaps, that there is no danger of their being forgotten while memorials to them stand in every town throughout the country. Certainly those men who lost their lives in the service of their country will not be forgotten in this generation, because most of them left others behind to mourn their going who will remember them as long as memory lasts. But will the nest generation remember, and the next? This memorial is designed to be a perpetual reminder throughout the ages of the sacrifices made by those who died for their country. The Legacy Club has as its motto and watchword the beautiful verse written by Col. McCrae, who was killed in France, a verse containing sentiments we would do well to remember. It is as follows : - >To you from failing hands we throw > >The torch; be yours to hold it high, > >If ye break faith with us who die > >We shall not sleep, though poppies grow > >In Flanders' fields. We must not fail in this duty to the soldiers who passed over. Moreover, this building will be not only a memorial, but also a war museum, and the repository of the priceless historical records of the Australian Imperial Force. It will be an everlasting reproach to us if we neglect to proceed nowwith this undertaking. We must not delay the -matter so long that public interest in it will wane. The existence of small memorials throughout the country should encourage us to propeed with this work immediately. Who has not felt inspired by the sight of the simple but beautiful memorialwhich overlooks thetown of Albury, that shaft of light which at night can be seen for miles in every direction? If the States and the small towns can each have their own memorial, is it not. still more important that the national city of Australia should be embellished with a memorial typifying the sacrifice of Australian soldiers as a whole? Parliament agreed to the erection of this memorial some time ago, and money has already been expended on the work. No doubt it is an effective argument in these straitened times to urge that funds should not be expended on what some might describe as useless bricks and mortar. That, however, is not the way in which Ave shouldview the matter; we should recognize our duty, and proceed with the work to which we have pledged ourselves. The Legacy Clubs of Australia at their Federal conference have carried a resolution to the effect that when the work is put in hand only returned soldiers should be employed upon it, and that, I think, should commend itself to every one. We should deliberate now, not as to whether we should proceedwith the work, but as tohow soon we can proceedwith it. For that reason I support the motion now before the committee. {: #subdebate-69-0-s1 .speaker-KDW} ##### Mr JONES:
INDI, VICTORIA · ALP .; I cordially approve of the noble sentiment which inspires and theworthy conception which prompts the erection of a National War Memorial at Canberra. Such a memorial will serve as an appropriate tribute of homage to thosewho gave their lives during the GreatWar. There are veryfew cemeteries in Australia where one cannot find a tablet or tombstone erected to perpetuate the memory of some individual soldier who gave his life for his country. More than that, in practically every town and village throughout Australia memorials have been erected to the honour of thosewho left the district to serve their country overseas. In the capital cities elaborate memorials have been erected in honour of thosewho have fallen, and in Melbourne a magnificent shrine of remembrance is now in course of construction. It therefore seems fitting that in our national capital a suitable memorial should some day be erected, but the view I hold is that it is our first duty to see that returned soldiers who are still with us, and their dependants, are amply provided for. I am sure that that would be the wish of those men whose memories it is desired to perpetuate. It is distressing to realize that, notwithstanding the. efforts made to repatriate returned soldiers and to alleviate the sufferings of many who returned incapacitated, many are still urgently requiring greater consideration and comfort than they are now receiving. If it. is the desire of the Australian people to properly recognize service and sacrifice, I unhesitatingly contend that the proper way to do that is to improve the conditions of our returned soldiers and their dependants. {: .speaker-JMG} ##### Mr Atkinson: -- But the money provided under these estimates could not be spent in the direction which the honorable member suggests. {: #subdebate-69-0-s2 .speaker-KDW} ##### Mr JONES:
INDI, VICTORIA -- If a saving of £30,000 could be effected in this instance, a similar amount could possibly be made available from another source. I am not opposing the construction of a national memorial, which is undoubtedly an essential work, but I maintain that in the present financial circumstances it cannot be regarded as urgent. Recently j. attended a conference at Albury to urge the necessity of completing the construction of the Hume reservoir, which I regard as a reproductive work. {: .speaker-JLJ} ##### Mr Abbott: -- Is not the Hume reservoir near the electorate of the honorable member ? {: .speaker-KDW} ##### Mr JONES: -- An ex-president of the Returned Soldiers Association attended the conference, and suggested that the construction of a national memorial at Canberra should be suspended for the present, particularly as many of his comrades who had been engaged at the Hume reservoir had been thrown out of work in consequence of the restriction of operations. The completion of that great undertaking should not be delayed, as the moment it is completed it will commence paying interest on capital expenditure. During a recent tour of the upper Murray and the Riverina districts, I was in .conversation with a number of graziers who were looking for agistment for their stock owing to the drought there prevailing. I was informed that in one year 15,000,000 sheep died in Australia and if these had a value of 20s. a head, the total loss to Australia was tremendous. If a huge national work such as the Hume reservoir had been completed and water made available a good deal of that loss could have been obviated. Every penny available should be expended on reproductive national works of that character, and I appeal to the Government to seriously consider the completion of that undertaking, which will be of great benefit to thousands of settlers. I desire to make it quite clear that I am' not opposed to the ultimate erection of a national war memorial, because I think it is the duty of the Australian people to recognize the sacrifice of those who fought for the Empire. I agree with the views ex pressed by the honorable member for Balaclava **(Mr. White),** who said that we had to consider the spiritual significance of such a memorial, and not its actual value. A simple cenotaph such as is erected in London would cost very little, and perhaps would serve the purpose until sufficient funds are available to carry out a more elaborate scheme. As I consider it desirable to defer this expenditure, I shall vote against the item. {: #subdebate-69-0-s3 .speaker-JOS} ##### Mr BELL:
Darwin .- In the Works and Buildings estimates submitted last year, provision was made for a portion of the cost of a national war memorial at Canberra. On that occasion I opposed the expenditure, and I am still of the opinion that, for a time at least, the money which it is proposed to spend could be put to a much better use. I congratulate the honorable member for Balaclava **(Mr. White)** upon his maiden speech in this House, and agree with what he said concerning the spiritual significance of a national war memorial. As we have been reminded by the Prime Minister **(Mr. Bruce)** and by the Treasurer **(Dr. Earle Page)** of the necessity of keeping down expenditure to the lowest possible limit, we must curtail works which are not urgently needed. It is pleasing to find that there are many fine memorials . erected throughout the Commonwealth, the cost of which has been spontaneously met by the people in the districts in which they are erected. At present a memorial is being erected on the Suez Canal in memory of those who fell in Sinai and Palestine, the cost of which was raised by a voluntary contribution of a day's pay from the men engaged in the eastern section {: .speaker-JZK} ##### Mr Coleman: -- What has been done in connexion with that memorial? {: .speaker-JOS} ##### Mr BELL: -- It will be completed early next year. As the fund was started soon after the first battle was fought in the eastern section, many gallant men contributed towards their own memorial. The proposed national war memorial in Canberra is of a different character, as it is being provided out of public funds. As loan expenditure has to be curtailed to the extent that expenditure is incurred on essential public works, we are actually constructing the memorial with borrowed money. I am sure my attitude will not be misunderstood. I am in favour of the construction of a suitable memorial when funds can readily be made available; but I maintain that at present it is our duty to proceed with the work of defending and developing this country rather than with constructing a memorial on the slopes of Mount Ainslie, in the Federal Capital Territory, in honour of those who gave up their lives in the Great War. {: #subdebate-69-0-s4 .speaker-KYX} ##### Mr C RILEY:
COOK, NEW SOUTH WALES · ALP; FLP from 1931 . -I intend to support this item, as I feel that the construction of a national war memorial at Canberra should not be further delayed. I am somewhat disappointed to find that the amount provided is not larger. I have no desire to confuse the issue by levelling a charge against the Government for neglecting to do the right thing for our returned soldiers and their dependants, many of whom I know are in a desperate plight. Acute distress is prevalent in the capital cities in consequence of unemployment. and hundreds of returned men in the coal-fields have been locked out, in consequence of the situation that has arisen there. The work of constructing a national war memorial at Canberra was referred to a parliamentary committee which two years ago submitted a favorable report. Last . year Parliament voted £50,000 for this purpose, of which amount only £30,000 was expended. It is now proposed to vote an additional £30,000 for this financial year. As a member of the Public Accounts Committee, which inquired into the building costs in the Federal Capital Territory, I formed the opinion that the main essential in Canberra is a fixed construction policy. During the initial stages difficulty was experienced in obtaining the services of a suitable class of workman, owing to the uncertainty of continuous employment. Business people and the residents generally are also inconvenienced by the lack of continuity in government policy. In these circumstances I trust that this big national work will be proceeded with, as the amount provided in this instance is small compared with the total cost to be incurred. Much of the opposition to this item has come from representatives of electorates in Victoria and South Australia, and I am afraid that their attitude is inspired by antagonism to the Federal Capital, which is so closely identified with the State of New South Wales rather than by a desire to see the money expended in other directions. From time to time members of the Opposition have criticised the Government for its failure to proceed with a progressive policy of public works; in so doing we have never suggested that such works should not be undertaken in Canberra, or should not include the National War Memorial. One reason why I desire public works proceeded with is that employment may be found for the large number of unemployed in our midst. If the amount of £30,000 appearing on the Estimates is voted it will provide for no more than the preliminary works necessary before a commencement may be made with the erection of the main building's. The considerable unemployment in Canberra will be relieved by the voting of this amount, because much of it will be expended in wages, and help will be afforded to the unfortunate men connected with the building trades who have been rendered workless through the lack of continuity in the policy of building this city. I could say a great deal regarding extravagance and fraudulent practices in the development of the Federal Capital, but past history will not be allowed to prejudice my mind against the item now under consideration. I hope that the Minister for Home Affairs will make a statement as to what, amount has been already expended, and how the proposed vote of £30,000 is to be applied. {: #subdebate-69-0-s5 .speaker-KIT} ##### Mr MACKAY:
Lilley .- I was Chairman of the Public Works Committee which presented to this Parliament in June of last year a report on the proposed National War Memorial, a project that has been before the people of Australia for a considerable time. I recognize that we are passing through a period of financial stringency, but of the amount of £50,000 voted last year, only a portion has been spent and the balance is still available for this year. The Public Works Committee took exhaustive evidence in regard to this proposal, and was informed that the records to be housed in the memorial are very valuable. In Melbourne and Sydney they have been viewed with interest by hundreds of thousands of people. The War Museum is not a mere collection of guns and implements of war, but is a remarkable assembly of relics, photographs, writings, drawings, and paintings, which will constitute a very interesting and instructive record. {: .speaker-JZK} ##### Mr Coleman: -- Was the Committee unanimous in recommending the work? {: .speaker-KIT} ##### Mr MACKAY: -- To the best of my recollection, it was. One of the most effective arguments that might be used in favour of immediately proceeding with the erection of the memorial is that the collection now temporarily accommodated in Sydney is highly inflammable. We should not continue to risk a fire which would destroy records that could not be replaced. The War Memorial will include a register of the names of the 80,000 Australians who lost their lives during the Great War - the only complete public record of its kind in Australia. {: .speaker-JSC} ##### Mr Brennan: -- Have we not arranged for a War Museum apart from the War Memorial ? {: .speaker-KIT} ##### Mr MACKAY: -- No; the War Memorial will house the collection now known as the War Museum. The purpose of the memorial will not be the glorification of war; rather will it tend to educate the minds of all beholders regarding the horrors of war. I agree that, in a time of financial stringency, expenditure should generally be confined to reproductive works; but the National War Museum represents an obligation to, and a contract made with, the Australian people, and already its construction has been too long delayed. The total cost, including the laying out of the gardens and approaches, will be . approximately £400,000, but the Government is proposing to spend only a small amount this year. If we are sincere in our professed intention to honour the brave men who fell in the war, we should act before the enthusiasm of the community commences to wane. I hope that during the next twelve months the economic position of Australia will so improve that it will be possible for this Parliament to vote the whole of the amount necessary to complete the memorial. {: #subdebate-69-0-s6 .speaker-JZK} ##### Mr COLEMAN:
Reid .- In regard to the proposal to postpone further work on the War Memorial, I have an open mind, and before I commit myself I should like to hear a statement from the Minister for Home and Territories. Obviously this is a non-party matter, and honorable members on both sides are divided in opinion as to whether the work is of immediate and pressing urgency. I realize that by a resolution carried unanimously by this House last year we are committed to the completion of a National War Memorial in Canberra. {: .speaker-KEQ} ##### Mr Killen: -- Not unanimously; I voted against it. {: .speaker-JZK} ##### Mr COLEMAN: -- There may have been a division as to the expediency of expending any money last year, but the motion for the construction of a war memorial in Canberra was carried without a division on the motion of the Minister for Repatriation **(Sir Nevillo Howse)** . {: .speaker-L07} ##### Mr Lazzarini: -- But not necessarily unanimously. {: .speaker-KEQ} ##### Mr Killen: -- Several speeches against the proposal were made by honorable members. {: .speaker-JZK} ##### Mr COLEMAN: -- Not against the ultimate construction. Nobody in this Parliament is opposed to the suitable commemoration of the sacrifices made by Australian soldiers in the Great War; everybody is ready to pay tribute to the unselfish spirit which impelled men to offer their lives on the altar of their country. Some people may be of the opinion that the war was fought in vain, and for mistaken ideals; but that consideration does not affect my judgment of the proposal now before us. The question we have to consider this evening is whether it is expedient during the present period of financial stringency to spend £30,000 on the memorial this year, hearing in mind the fact that expenditure on very urgent national works of a reproductive character will he either suspended or seriously curtailed. The honorable member for Indi **(Mr. Jones)** truly said that if those who have fallen could . be consulted, they would tell us to proceed with urgent national projects which will provide work and sustenance for the living. I ask the Minister to tell the committee what amount was expended on the memorial last year, and how it was expended. {: .speaker-JLJ} ##### Mr Abbott: -- Of the £30,000 voted on the Estimates last year only £10,000 was spent; the balance was placed in a trust account, and is available for expenditure this year. {: .speaker-JZK} ##### Mr COLEMAN: -- If the building had been actually commenced it would be economically unsound to discontinue construction and dismiss the hundreds of men engaged upon it; but if construction has not commenced it may be advisable to divert the proposed expenditure to some more urgent work in the Federal Capital Territory. A vote against the item will not involve the abandonment of the memorial; it will merely mean the postponement of further operations until the next financial year. However, the committee is groping in the dark, and perhaps hours of unnecessary debate will be avoided if the Minister will explain to the committee exactly what work has been done. {: #subdebate-69-0-s7 .speaker-JUB} ##### Mr D CAMERON:
BRISBANE. QLD · NAT -- I am surprised to hear some honorable members opposing the continuance of operations for the erection of a National War Memorial in Canberra. Past experience warns us that often when the erection of a memorial is delayed the work is never undertaken. I have in mind proposals for the erection of memorials to the memory of those who fell in the -South African War; some which were delayed were not completed for 25 years, and others not at all. In 1925 this Parliament, sitting in Melbourne, passed the Australian War Memorial Act, which provides - {: type="1" start="1"} 0. There shall he a Commonwealth Memorial of the Australians who died in tlie war. 1. The Memorial shall be known as the Australian War Memorial, and shall consist of the collection of the war relics of the Commonwealth and such building for the accommodation of those relics as is specified by the Governor-General by notice in the *Gazette.* 2. The war relics of the Commonwealth shall include the relics, records, models, pictures, photographs, and other articles which at the commencement of this act comprises the Australian War Museum and any other such articles, having relation to the war, which are acquired in pursuance of this act. The report of the Public Works Committee regarding this project is well worth reading. Of the war museum it says - >This great collection is said to bc unique of its kind, in that it constitutes not a war museum portraying - much less glorifying - war, but a memorial conceived, founded, and from first to last worked for by Australian sailors and soldiers themselves in honour of their fallen comrades. The national war memorial is to take the form of a monumental building in which the war records and relics of the Australian Imperial Force will be housed. A feature of it will be the Hall of Memory, upon the walls of which will be inscribed the names of our illustrious dead. It is estimated that upwards of 80,000 names will be placed upon those walls. Sixty thousand of these will be the names of the men who were killed on active service; the other 20,000 will be the names of men who have since died from war injuries. The names will be recorded without any indication of rank or distinction, in order that they may mark the equal sacrifice of every Australian who gave his life for his country. I know that some honorable members feel that this is not the time to spend a large sum of money on a memorial, but the fact remains that the representatives' of the Returned Sailors and Soldiers League in every State in Australia have urged that the work should be put in hand at the earliest possible moment. I believe that that is the overwhelming opinion of the great majority of ex-service men. As a member of the War Memorial Board, appointed to assist and advise the Commonwealth Government in building the memorial in Canberra, I frequently remind myself of the immortal words in the famous funeral oration of Pericles, spoken 2,000 years ago over the dead soldiers of another democracy - >They gave their lives. For that public gift they received a praise which never ages and a tomb most glorious - not so much the tomb in which they lie, but that in which their fame survives to be remembered for ever when occasion comes for word or deed. I trust that honorable members will show by an overwhelming majority that they favour pressing on with the erection of this memorial without delay. {: #subdebate-69-0-s8 .speaker-KLM} ##### Dr MALONEY:
MELBOURNE, VICTORIA · ALP; FLP from 1931; ALP from 1936 .- Whether we should or should not erect a memorial to our glorious dead is hardly the question before us. All that we should be concerned with is the form that the memorial should take. We should have a memorial of the greatest beauty that the human mind can devise. It will be agreed, I think, that the most beautiful buildings which human hands have made have been temples. There is, perhaps, nothing to compare with the Parthenon at Athens; but we need more than a temple. It will be remembered that the Repatriation building in Melbourne is situated near the Victorian war memorial, and also- near the lesser memorial erected in honour of the South African soldiers. I was looking at those memorials some little time ago, when a hungry and illclad digger whom I knew, came along and said to me " They propose to put up a national war memorial at a cost of many thousand pounds. When they build this memorial they should make provision in it for diggers who are down on their luck to get a bath, a bed, some decent clothing, and a feed ". That would be a worthy memorial. I have always been opposed to the building of solitary monuments. I know that this proposal has received the approval of Parliament, but it is very difficult at times for one to register his disagreement with propositions that are placed before the House. I cannot speak as a " digger ", although I volunteered for active service during the first week of the war. **Dr. Charles** Ryan, before whom I had to appear, laughed at me and told me that I was too old. I may have been old, but surely I could have been of some service at the front in bandaging a limb or in some other way. I was a member of the Victorian Recruiting Committee right through the war. As a matter of fact, I was the only original member of it left when peace was declared. I heard many recruiting addresses delivered from our public platforms by eloquent men in all grades of society, but never once did I hear a speaker promise our young men that if they enlisted the Government would see that a glorious monument was erected to commemorate their deeds. They were promised, however, that their wives and mothers, and their children and other dependants, would be cared for. The honorable member for Brisbane **(Mr. D. Cameron)** has referred to the delay that has occurred in many places in the erection of war memorials. This delay has often been due to lackadaisical trustees of various funds that have been raised for the purpose. I well remember that my friend, the late **Sir John** Madden, Lieutenant-Governor of Victoria, promised the men who enlisted that their wives and children and other dependants would he cared for; but subsequently I often heard him say with intense feeling that his lips had been made to lie, for the promises made to the men had not been fulfilled. After the South African war the promises made to the men were scandalously repudiated or forgotten. It was not quite so bad after the last great war. But we still have a long way to go before it can be said that we have done all that should be done. Consequently, I favour the building of a memorial in which provision will be made for helping any sick, hungry or unfortunate digger, or his immediate relatives. We want more than a building which will satisfy our sense of beauty. We want something that will make it possible for us to render practical help to the men whose deeds we are seeking to recognize. {: #subdebate-69-0-s9 .speaker-JMG} ##### Mr ATKINSON:
Wilmot .- I agree with (honorable members who have said during this debate that money is needed for a great many reproductive works in Australia; but I feel that we have a sacred duty to discharge in the building of this memorial. The work should be put in hand and completed as early as possible. While I shall be glad to do all I can to ensure that the available public funds will be put to the best use in meeting the needs of the country, I feel that I should be failing in my duty if I did not advocate the completion of this memorial, which we hope will give true and beautiful expression to the spirit of self sacrifice displayed during the war by those who went on active service. The memorial should be of such a nature that it will for all time inspire our young people with the highest ideals of citizenship and patriotism. I trust that war will soon be ended for ever, but there will be other avenues of life in which the spirit of self sacrifice will need to be displayed. I congratulate the honorable member for Balaclava **(Mr. White)** upon his first speech in this House. He struck a high note and set before us a great ideal. He may find it difficult to maintain his ground in the hurly-burly of politics, but he has certainly started well. I feel that our pressing on with the building of this memorial will not in any way prejudice the claims of the needy ex-service men in our midst. Even if the memorial were not built the money proposed to be devoted to the purpose would not be available for other repatriation purposes. We ought to do every thing in our power to rehabilitate our soldiers and to ensure that their dependants are provided for, but we should also build this memorial. I trust that this proposed vote will be agreed to, and that next year an even larger amount will be placed on the Estimates for the completion of the work. I am not an ardent advocate of Canberra, for I am of the opinion that we have come here far too soon. But seeing that we are here, the war memorial should be constructed without delay. {: #subdebate-69-0-s10 .speaker-JLJ} ##### Mr ABBOTT:
Minister for Home Affairs · Gwydir · CP -- When the Public Works Committee reported on the proposal to erect a war memorial at Canberra its cost was estimated at £270,079. That was for a building to be constructed with a granite facing. Accessory services debit able against the cost of the memorial were estimated to cost a further £99,892, making a total of £369,971 for the main building. In addition, there was a sum of £43.019 which, while not actually debitable to the memorial, was for works to be carried out by the Commission in keeping with the plan for the development of that part of the city known as Anzac Park. Parliament adopted the report, and a sum of money was placed on the Estimates. As, however, the whole of the amount so provided was not expended, the sum of £20,000 was placed in a trust account. Should this item be agreed to, the total amount available this year for the main work of the building will be £50,000. The proposal to construct this building should be viewed from two angles; first, it will be a memorial to the Australian soldiers who fell in the Great War; and, secondly, it will play an important part in the development of the national capital. Honorable members will recall that, when on Anzac Day of this year a commemorative stone was laid by the Governor-General, the ceremony was most impressive. The service was broadcast throughout Australia, and according to newspaper reports, considerable interest in the proceedings was taken by the people everywhere. Every organization of returned soldiers has approved of the erection of the memorial, and, so far as I know, the majority of the men to be employed on the building will be returned soldiers. In my opinion, the housing of the records and souvenirs of the Australian Imperial Force is an important part of the project. Those records have made a tremendous appeal to the Australian public. The aggregate attendances of persons who have inspected them in Melbourne and Sydney have exceeded the attendances of visitors to similar exhibits in other countries. There is clear evidence of the interest of the people in this matter. As the Minister in charge of Canberra I remind honorable members that during the forthcoming year there will be a considerable lessening of construction work in the capital. Approval to this item will mean that 40 or 50 married men who otherwise would be thrown out of employment will be kept working. {: .speaker-L4X} ##### Mr PARKER MOLONEY:
HUME, NEW SOUTH WALES · ALP -- How many men are working on the memorial site now? {: .speaker-JLJ} ##### Mr ABBOTT: -- Not many. The developmental work there has been chiefly the levelling of the approaches, requiring probably fifteen or twenty men. For the reasons I have given I appeal to the committee to agree to the item. {: #subdebate-69-0-s11 .speaker-KXY} ##### Mr PERKINS:
Monaro · Eden -- I congratulate the Government on the inclusion of this item. Work in connexion with the memorial has already been started. A commemorative stone was laid as part of an impressive ceremony in April last, and the stoppage of the work now would be a reflection on a previous decision of this Parliament. As the representative in this Parliament of the district of Eden-Monaro, I am aware of the hardships of those living in Canberra and Queanbeyan. The building of the national capital attracted many workmen who now, owing to financial stringency, are out of employment. Only yesterday J. drew the Minister's attention to the case of a man who, after seventeen years residence in the district, had received notice of dismissal. He is only one of many similarly situated. Most of the £30,000 proposed to be expended will be paid to artisans and others. The noble sentiments expressed by the honorable member for Balaclava **(Mr. White)** in a speech on which I compliment him, will, no doubt, appeal to honorable members. I ask them also to consider the effect which the passing of this item will have on the workers in this district. {: #subdebate-69-0-s12 .speaker-KJQ} ##### Mr JAMES:
Hunter .- I am opposed to the spending of a large sum of money on the construction of a war memorial at .this juncture. It is not that I have no desire to honour the men who fought in the interests of the nation; my opposition to the project is due to my knowledge of the distress which prevails throughout the Commonwealth. The money could better be expended on works of a reproductive nature which would be of benefit to the country and give employment to many returned soldiers and others who are in search of it to-day. Another reason for my opposition to the proposal is the treatment being meted out by the War Service Homes authorities to many returned soldiers in my district. Many of the men who are living in war-service homes have recently received ejectment notices. The Minister said just now that the various organizations of returned soldiers throughout Australia have approved of the scheme. I do not question his statement, but I know that some of them are' greatly dissatisfied with the treatment of returned soldiers. If the nation wants to do something for its soldiers, it should assist those who are alive; it should show some practical sympathy with those who returned maimed, or through the unfortunate lockout in the coalmining industry cannot pay the instalments due on their homes. It is deplorable that in these cold winter months returned soldiers, with their wives and families, should be threatened with ejectment. I know of cases in which little children, only a few months old, will have to leave their homes at the end of this month unless the arrears of rent due by their fathers are paid. {: .speaker-KEV} ##### Mr Fenton: -- Surely they will not be turned out. {: .speaker-KJQ} ##### Mr JAMES: -- I have here a letter sent by the Cessnock and District Sub-branch of the Returned Sailors' and Soldiers' Imperial League of Australia to the DeputyCommissioner of War Service Homes as well as many others from soldiers who, according to these threats, will have to go out of the war service homes they now occupy. This letter reads - Sir,- I have before my notice a notification from your department, sent to Edwin Odgers, of 6 Harris-street, Cessnock, notifying him that owing to his account being in arrears to the extent of £53 10s., the Commissioner is reluctantly obliged to institute proceedings for recovery of the land and dwelling. This man is well known by my committee to be a sober and level-headed man, with an earnest wish to do the right thing at all times. For the past two or more years he has had one continual up-hill struggle. He was one of the unfortunate men to be put off work more than two years ago. In the meantime he got a start again, but was soon laid idle owing to an accident. Then came the present five months lockout during which time he was bereaved of his wife, so you will quite realize his cup of bitterness. **His** payments prove that he has a genuine desire to pay off his liability when in a position to do so, as he has previously overpaid his monthly instalments on many occasions. He now states that if his offer will be acceptable to the Commission, he is prepared to pay £1 per month in excess of his monthly instalments, or probably more when the present coal trouble is ended, but owing to the uncertainty of its termination, he cannot fix a definite date on which to commence his payments. I can assure you that his promise is genuine, and will be fulfilled as soon as possible. If the Commission carries out its intentions to the letter, and finally ejects this man, the Commission will have achieved an unprofitable, result, having on its hands another empty house. Many hundreds of houses are standing empty in this district, and are quickly becoming dilapidated. It appears to be far better to appreciate a willing and genuine paying tenant to an empty house with no prospect of a future tenant. Many landlords here are only too pleased to keep a house tenanted during this crisis, even if the tenants only act as caretakers of the property. Odgers is not asking for such consideration as this, but this sub-branch appeals to the Commission to again review this case, and stay its hand until after the settlement of the present coal trouble, as my committee are certain that this man's future efforts will fully justify any leniency you may extend to him. Thanking you in anticipation of a favorable reply. Yours faithfully, (Sgd.) F. COBURN, Hon. Secretary That is one case. The reply was that one month's extension would be given to this man; but, in the meantime, he must pay 5s. a week towards wiping off the arrears of payments. How could this man find 5s. a week when it takes him all his time to get sufficient to eat. The miners on the coal-fields are scouring the country to get the necessaries of life for their wives and children. They have no money with which to buy these things. {: #subdebate-69-0-s13 .speaker-10000} ##### The CHAIRMAN: -- I have allowed the honorable member great latitude; but I cannot permit him to discuss in detail the conditions on the northern coal-fields. He must confine his remarks to the item before the Chair. {: #subdebate-69-0-s14 .speaker-KJQ} ##### Mr JAMES: -- I am speaking of the returned soldiers. {: .speaker-10000} ##### The CHAIRMAN: -- The item under discussion relates, not to returned soldiers, but to the building of a war memorial. {: .speaker-KJQ} ##### Mr JAMES: -- I hope later to have an opportunity of reading the numerous ejectment notices that I have with me. I oppose the erection of a war memorial while the spectre of starvation is stalking through the coal-fields. Money should be expended only on reproductive works. Our boys fought for this country. Many and varied were the promises that were made to them at the time of their enlistment. They were told that they were going to make the country safe for democracy and fit for heroes to live in; but instead of this they find the country still governed by wealthy exploiters. Many of those who returned to Australia found also to their sorrow that it was difficult for them to secure employment. They and their dependants are being treated shamefully by the governments of Australia. I oppose the item providing for this memorial, which will cost approximately £250,000. {: #subdebate-69-0-s15 .speaker-L07} ##### Mr LAZZARINI:
Werriwa .- I am opposed to the proposed expenditure of £30,000 towards the erection of a war memorial at Canberra. There is a saying that it is better to pin a rose to the coat of a living man than to lay an expensive wreath upon the breast of a corpse. That, I think, will explain to honorable member's my attitude towards the proposal to erect a national war memorial. To-day the Government is dismissing from its departments men who received injuries overseas; yet in this House it talks of lofty ideals and sentiments and the need to commemorate our soldiers' sacrifices at the war. Our boys enlisted in order to save this country for democracy, and believing that the war would end war. If we are to build a war memorial it should be as the result of spontaneous contribution by the nation, and not by borrowing money or draining a depleted treasury. It is unfortunate that we have in this country a Treasurer who is utterly incapable of making ends meet. This talk by the Government of noble sentiments and lofty ideals is sheer hypocrisy. To-day returned soldiers are being ejected from war service homes, and many others are on the verge of starvation. The Government speaks of the self-sacrifice of the men who gave their lives for their country ; but no mention is made of the self-sacrifice of those who returned injured and sick. Our returned soldiers are entitled to every consideration, and for that reason I oppose the item. {: #subdebate-69-0-s16 .speaker-JUV} ##### Mr MCWILLIAMS:
Franklin -- I have always failed to perceive how any great sacrifice is involved in borrowing money to erect war memorials. Some of the memorials that have been built in the form of halls, with the names of our gallant soldiers inscribed therein, are a credit to Australia; but in many cases their erection has entailed no sacrifice on the part of the community. In view of the statement of the Treasurer **(Dr. Earle Page)** this afternoon, the building of the memorial should certainly be postponed. This is not the time for Parliament to indulge in the expenditure of money unless for urgent purposes. It is worse than foolish - in fact, it is deli- berately wrong - for us to attempt to hide the fact that we have lean years ahead of us. The decrease in the price of wool is a serious blow to Australia. Some experts estimate that wool prices have been reduced by at least 35 per cent. In view of that position, we are not justified in spending money on items such as this, no matter how much we may desire to show our appreciation of the sacrifices of our gallant soldiers, especially of those who did not return. This is not the proper way to show our sympathy towards these men. It has been said that many returned soldiers, some of whom were wounded during the war, are being deprived of their employment to-day because of the financial stringency. Before we set about the business of erecting a war memorial, we should show our sympathy with these unfortunate returned soldiers in a more practical way. If their voices could be heard here to-night, they would tell us emphatically that the best memorial that could be erected in honour of comrades who fell, would be to make more adequate provision for the dependants of deceased soldiers, as well as for those who were injured and are now in search of employment. I hope that the Minister will consent to the postponement of this item until the Budget has been discussed, and until the House has decided what action shall be taken to meet the accumulated deficit of the last two years. No honorable member wishes to vote against the proposal to erect a war memorial in Canberra, but some of us at least feel that our duty towards returned soldiers who are in need to-day is more pressing. We feel that not one shilling should be spent on a war memorial whilst ex-service men are out of employment owing to financial stringency. There are tens of thousands of men looking for work in all parts of Australia. I say, therefore, that this is not the time to consider proposals of this kind. If the Minister persists in pressing the item to a division, I shall feel it my duty to vote for its postponement. {: #subdebate-69-0-s17 .speaker-L4X} ##### Mr PARKER MOLONEY:
HUME, NEW SOUTH WALES · ALP -- It is a pity that this proposal should be decided on considerations of sentiment. There is the practical side also to consider. I heartily agree with the remarks of the honorable member who has just resumed his seat **(Mr. Mcwilliams)** and the speech of the honorable member for Indi **(Mr. Jones).** I believe that if the returned soldiers themselves had an opportunity to express their views, they would with one voice declare that the best memorial which the Commonwealth could erect to the memory of their comrades who had fallen, would be to use this money to provide more adequate pensions for dependants of deceased soldiers and for the sustenance of ex-service men who are suffering from war disabilities. I am not opposed to the erection of the war memorial in Canberra at a suitable time, and I feel sure that other honorable members who have urged the postponement of the proposal have done so on the ground that the time is not opportune. Scarcely a day passes without the Treasurer **(Dr. Earle Page)** referring to the difficult position in which the Commonwealth finds itself, and every day newspapers are directing attention to the awful state of our finances. But I do not take a pessimistic view of the future. I believe that although we are passing through a bad time as a result of this Government's mismanagement, there is a good time coming, and that we should all strike a cheerful note, even if we are confronted with a huge deficit. The other night I was present at a public meeting which was attended by many returned soldiers, who owing to the present financial stringency, had lost their employment on the Hume works, and were being turned out on to the road. The president of the local branch of the Returned Soldiers League, who was one of the speakers at the meeting; said that about 400 returned soldiers had lost their employment there recently, and that they and their wives and children were now in want, simply because money was not made available for the continuance of the work, whilst at the same time the Government was making provision for the erection of this unproductive memorial in Canberra. Much has been said in the course of this debate about returned soldiers being in favour of the scheme. The president of the league in the Hume district at all events does not favour it, and I think his view is the sensible one. I endorse what the honorable member for Franklin **(Mr. Mcwilliams)** has just said. I should prefer to see the money for this memorial made available to provide more adequate pensions for the widows and orphans of deceased soldiers, and certainly I shall vote for the postponement of this item until the financial position of the Commonwealth has improved. Even in the Federal Capital area, the housing provision for a number of ex-service men is shamefully inadequate. The shacks and unsightly cubicles which one finds in the construction camps here are not fit for human beings to live in. Whilst men are being housed in this manner, there is absolutely no justification foi" proceeding with an unproductive work like the proposed war memorial. Honorable members on this side of the House, who have spoken against this item do not object to the erection of the memorial itself. All they say is that we should wait till a more opportune time, and that if money is available it could be put to better use by providing more liberally for widows and orphans of deceased soldiers, and giving employment for ex-service men who are now out of work. {: .speaker-JLJ} ##### Mr Abbott: -- If this work is not proceeded with there will be more men unemployed in Canberra. {: .speaker-L4X} ##### Mr PARKER MOLONEY:
HUME, NEW SOUTH WALES · ALP -- The Minister's statement does not impress me. When I asked him a little while ago how many men were affected by the scheme, he said " about 20 ". If this scheme were postponed and if the money to be made available for it could be spent on the Hume reservoir for instance, it would give employment to a large number of men who already have their homes established in that district. This would be infinitely better than spending money oh an unproductive work in Canberra and encouraging men to leave other districts to secure employment here where there is no suitable housing accommodation for them. The Hume reservoir is a national work in every sense of the word. There is no justification whatever for throwing those men out of employment, and certainly no justification for the expenditure of loan money on a national war memorial when funds cannot be found for a reproductive work such as that I have in mind. The action of the Government is quite illogical. I am not opposed to the erection of the war memorial at the right time. There is a time and place for all things. Dozens of letters requesting assistance are received by honorable members every week from widows and other dependants of deceased soldiers. Some of these dependants receive only 10s. or 15s. a week by way of pension. If the proposed expenditure were not sanctioned at the present juncture, no reflection would be cast upon the memory of the soldiers who have laid down their lives for their country, and at the same time the best interests of those they have left behind would be served. {: #subdebate-69-0-s18 .speaker-K07} ##### Mr COLLINS:
Wakefield .- I take exception to the reflections cast upon the honorable member for Adelaide **(Mr. Yates)** and myself, because of our attitude to this proposal. Every honorable member will recollect the explanation given by the honorable member for Adelaide. The honorable member for Cook **(Mr. C. Riley)** declared that the opposition to the proposal came chiefly from members from South Australia. That was a most unfair reflection upon those members. The honorable member for Lilley **(Mr. Mackay)** said that, if the work was not proceeded with, a valuable collection of war mementoes might be destroyed. Surely they are housed somewhere at the present time, and there is no immediate danger of their destruction. {: .speaker-KZ6} ##### Mr Lacey: -- There is a grave fear of it. {: #subdebate-69-0-s19 .speaker-JWT} ##### Mr J FRANCIS:
MORETON, QUEENSLAND · NAT; UAP from 1931; LP from 1944 -- Adequate protection cannot be afforded in the buildings available. {: .speaker-K07} ##### Mr COLLINS: -- It seems to be a strange position. The honorable member for Brisbane **(Mr. D- Cameron)** hoped that the work would be proceeded with at the earliest opportunity; but I submit that the present time is not opportune. The honorable member for Wilmot **(Mr. Atkinson)** contended that money was not available even for essential works, and yet he maintained chat the present proposal should be proceeded with. Although 1 am not a returned soldier, 1 have the honour of being a rejected volunteer for active service, and I have taken the greatest interest in the returned men, even since the signing of the armistice. In the large constituency which I represent there are hundreds of returned soldiers who are now living on the bread line, and I maintain that the money proposed to be expended on the memorial, desirable as it may be, could be used to better advantage in assisting the soldiers and their families who are now in immediate need. According to the Minister, the approximate cost of the work will he in the neighbourhood of £369,000, but judging from experience of the estimated and actual cost of public works, I should not be surprised if the expenditure eventually amounted to nearly £500,000. If the time were opportune, I should not object to the Government spending even £1,000,000, if necessary, in order suitably to perpetuate the memory of the men who died for their country in the late wax. The Minister remarked that, if the proposal were rejected, workmen in Canberra would be thrown out of employment. The Minister also stated that an amount of £17,000 from previous votes was unexpended. That sum should be sufficient to keep the same number of men employed on the work in the current year. Although T appreciate the great service rendered to the Commonwealth by the members of the Australian Imperial Forces, I hope that every honorable member will object to the expenditure now proposed. Proposed vote agreed to. Progress reported. House adjourned at 10.32 p.m

Cite as: Australia, House of Representatives, Debates, 22 August 1929, viewed 22 October 2017, <http://historichansard.net/hofreps/1929/19290822_reps_11_121/>.