House of Representatives
19 April 1940

15th Parliament · 2nd Session

  1. House of Representatives
  2. 15th Parliament
  3. 1940

Mr. Speaker (Hon.G. J. Bell) took the chair at 10.30a.m., and read prayers.

page 197

QUESTION

AMENDING REPATRIATION LEGISLATION

Mr MAHONEY:
DENISON, TASMANIA

– Is the Minister for the Army in a position to say that any legislation to amend the Repatriation Act will cover all men who are in the home defence army and the Militia, as well as those who have gone overseas?

Mr STREET:
Minister for Defence · CORANGAMITE, VICTORIA · UAP

– It is generally unwise to foreshadow intended legislation, but I can inform the honorable member that all sections of the Army will be covered by the amending repatriation legislation which is to come before Parliament.

Mr FRANCIS:
MORETON, QUEENSLAND

– In view of the fact that it is most difficult more than twenty years after the termination of a war to prove that the disabilities of ex-soldiers are due to war service, will the Minister for Repatriation undertake to examine the advisability of granting a more liberal interpretation of war disabilities in order to ensure that all soldiers who served in a theatre of war will be entitled to receive medical treatment in repatriation hospitals, and will be granted more liberal pension rights?

Mr STREET:

– The honorable member’s suggestions will be given full consideration.

page 197

QUESTION

CAPITAL ISSUES REGULATIONS

Mr NAIRN:
PERTH, WESTERN AUSTRALIA

– Will the Treasurer state in a brief form for public information the effect of the Capital Issues Regulations as regards the limitation of interest with respect to both existing securities and future issues?

Mr SPENDER:
Treasurer · WARRINGAH, NEW SOUTH WALES · UAP

– I do not think that it is possible to state in a brief form details relating to the subject-matter of the honorable member’s question, but I shall have a summary prepared and placed on the table of the House.

page 197

QUESTION

JUTE GOODS

Mr BADMAN:
GREY, SOUTH AUSTRALIA · UAP; CP from 1940

– Is it a fact that the

Jute Committee has appointed a buyer to purchase Australia’s requirements of jute, that merchants will be supplied from such purchases and will be allowed to make profits from the distribution of such goods to persons requiring them? Further, will he say whether it would not be possible to allow the Wheat Board to mate distribution of cornsacks and the Central Wool Committee to distribute woolpacks, thereby saving the profits to the primary producers?

Sir FREDERICK STEWART:
Minister for Social Services · PARRAMATTA, NEW SOUTH WALES · UAP

– It is true that an advisory committee has been appointed, but it is not true that that committee has appointed a buyer, although the matter of such an appointment is under discussion and will be determined at a meeting to be held next week, when I shall be present. It is certainly untrue, as the honorable member’s question suggests, that, as the result of this Arrangement, merchants will be able to make undue profits, because, as the honorable member is no doubt aware, profits in relation to jute products are under the control of the Prices Commissioner. I assure him, and honorable members generally, that the action taken by the Government is definitely designed to ensure not only that there shall be adequate supplies of jute products in Australia, but also that they shall be available at prices that do not represent undue profits.

Mr SCULLY:
GWYDIR, NEW SOUTH WALES

– I direct the attention of the Minister for Commerce to the fact that during the last wheat season, when the price of second-hand wheatsacks was fixed at approximately 9s. a dozen, a considerable number of farmers were charged 12s. a dozen for such bags by some merchants. I ask the honorable gentleman whether in cases where this can be proved, he will oblige the merchants to make a refund and also whether he will take action under the price fixing regulations against merchants guilty of such practices?

Sir FREDERICK STEWART:

– As I have already indicated, the whole subject of jute supplies of every kind required in Australia is now being discussed by an advisory committee on which the manager of the Wheat Board has a seat, the Wool Committee has a nominated representative, and the producers themselves have direct representation. I assure the honorable member that all aspects of the subject are being considered.

page 198

QUESTION

RE-BROADCAST OF BRITISH BROADCASTING CORPORATION NEWS

Mr HARRISON:
WENTWORTH, NEW SOUTH WALES

– In view of a statement attributed to him in the press recently, that within 48 hours of assuming office, he had satisfactorily concluded arrangements with the Australian Broadcasting Commission and British Broadcasting Corporation in relation to war news broadcasts, will the PostmasterGeneral, for the information of the House, place on the table of the House all of the correspondence that passed between the various departments with regard to this matter, including that between the Director of Overseas Broadcasts with the British Broadcasting Corporation, that between the Prime Minister and the High Commissioner in England, the opinion of the Attorney-General with regard to the legal technicalities involved, as well as the letter that was sent by me in my official capacity to the chairman of the Australian Broadcasting Commission ? Will he also place on the table the agreement between the Australian Broadcasting Commission and the Australian Associated Press so that honorable members may have some idea of what was done in this matter before the present Minister took over his office ?

Mr THORBY:
Minister for Health · CALARE, NEW SOUTH WALES · CP

– The statement attributed to meis entirely incorrect. What I did say was that within 48 hours of my appointment as Minister, I took up with representatives of the Australian Broadcasting Commission and the Australian Associated Press, the question of providing for a complete broadcast of British Broadcasting Corporation news bulletin. I immediately had a conference with representatives of the Australian Broadcasting Commission and the Australian Associated Press and advised them that it was their responsibility, in the first place, to endeavour to come to a satisfactory agreement which would enable listeners to hear full broadcasts. They conferred, and later came to an agreement, with the result that the listeners are getting the full broadcast at the present time. As to the other part of the honorable member’s question, I shall go into the matter and see what papers can be made available. There is nothing secret in the agreement which has been entered into between the Australian Broadcasting Commission, the Australian Associated Press and representatives of the commercial broadcasting stations, but the correspondence is somewhat voluminous, and some of the papers relate to correspondence and cablegrams which passed between the Commonwealth Government and the High Commissioner in England and others. In respect of such correspondence, I shall accept the advice of the Commonwealth’s legal advisers as to how much of it should be made public.

page 199

SPECIAL ADJOURNMENT

Motion (by Mr. Archie Cameron) agreed to -

That the House, at its rising, adjourn until Monday next at 3 o’clock p.m.

page 199

QUESTION

INTERNATIONAL SITUATION AT NARVIK

Mr HOLT:
FAWKNER, VICTORIA

– This morning’s Daily News, which claims to have an independent cable service, states that German forces still hold Narvik in Norway. Is the Minister for External Affairs in a position to confirm or deny that report?

Mr McEWEN:
Minister for External Affairs · INDI, VICTORIA · CP

– Official advices received by the Government, which I have no doubt are correct, state that British forces have landed at Narvik and are engaging the German forces which originally occupied that town. I understand that British troops are in possession of Narvik, but that some German forces still remain in the vicinity.

page 199

QUESTION

CANBERRA

Hostel Charges

Mr MAHONEY:

– Is it true that instructions have been issued that the board of Commonwealth public servants living in hotels and hostels under Commonwealth control in the Australian Capital Territory is to be increased?

Mr SPENDER:
UAP

– No; but the question of the trading results of the hostel: in Canberra is being investigated.

page 199

QUESTION

IMPORT RESTRICTIONS

Mr JENNINGS:
WATSON, NEW SOUTH WALES

– As the import restrictions already in force are causing much concern to both manufacturers and importers, will the Treasurer suggest to the Minister for Trade and Customs that a conference be arranged with manufacturing and importing interests, with a view to solving many of the problems which have arisen?

Mr SPENDER:
UAP

– I shall be glad to make representations on the subject to the Minister for Trade and Customs.

page 199

QUESTION

GOLD RESERVE

Mr SPENDER:
UAP

– Yesterday, the honorable member for Dalley (Mr. Rosevear) asked a question with respect to the gold reserve and I promised to supply him with, an answer this morning. So far, tho detailed information asked for has not come to hand, but I hope to receive it during the day, and to supply it to the. honorable member.

page 199

QUESTION

BUTTER FACTORY AT MOULAMEIN

Mr CLARK:
DARLING, NEW SOUTH WALES

– In view of the invasion of Denmark by German forces and the necessity to supply Great Britain with butter which previously came from Denmark, will the Treasurer reconsider his decision not to allow a proposed cooperative butter society to raise capital for the establishment of a butter factory at Moulamein in New South Wales?

Mr SPENDER:
UAP

– I shall be pleased to reconsider the decision if the honorable member can place before me any facts to show that, as the result of the invasion of Denmark, the establishment of the additional factory is necessary.

page 199

QUESTION

SHIPPING FROM AUSTRALIA

Mr THOMPSON:
NEW ENGLAND, NEW SOUTH WALES

– Will the Acting Leader of the House indicate whether last season’s wheat is being shipped from Australia at a sufficiently satisfactory rate, and also whether reasonable space is available for the shipment abroad of apples and pears? Further, will he say whether the prospects for the shipment of this year’s crop of apples and pears overseas are reasonably satisfactory?

Mr ARCHIE CAMERON:
Minister for Commerce · BARKER, SOUTH AUSTRALIA · CP

– The shipment of wheat is proceeding slowly, and there is no doubt that there will he a heavy carry-over when the next harvest is reaped. The space made available for the shipment of apples and pears was less than the Government desired, hut it was all that could be obtained.

page 199

QUESTION

EMPLOYMENT OF CRIPPLES

Mr ROSEVEAR:
DALLEY, NEW SOUTH WALES

– Will the Minister for Health say whether he, or some of his officers, were responsible for a statement which appeared in the press recently, that a scheme was being evolved whereby partially crippled people at present receiving invalid pensions would be given employment? Will he say, further, whether the person responsible for that statement is aware that invalid pensions are not paid to partially crippled people, and, if so, will he have the report corrected? Has the Minister any information in regard to the proposed scheme to offer to the House ?

Mr THORBY:
CP

– The Sunday Telegraph did not correctly report what I said, and I regret that as the result of such report a wrong impression has been gained by many unfortunate people throughout the Commonwealth, particularly in New South Wales, who have been led to believe that work would be found for them. The statement that I made was that the Department of Health - and I made it as Minister for Health - was endeavouring to bring about co-ordination between the many charitable bodies which are doing valuable work with crippled children, in an endeavour to get continuity between the treatment, education, and vocational training and the placing of crippled children in positions, including the provision of facilities for entering certain sections of the Public Service, where their services could be utilized. I regret that as the result of the incorrect newspaper report, a number of people have been misled.

page 200

QUESTION

WHEAT INDUSTRY

Mr GREGORY:
SWAN, WESTERN AUSTRALIA

– When does the Minister for Commerce expect to be in a position to announce the policy of the Government in connexion with next year’s wheat harvest? Is it proposed that there shall be any reduction of the areas under wheat? What proposals generally has the Government in mind to deal with the position.

Mr ARCHIE CAMERON:
CP

– A statement on this subject will not be delayed a day longer than is necessary. The whole subject is under consideration.

Mr POLLARD:
BALLAARAT, VICTORIA

– Will the Minister for Commerce inform me what action is being taken to ensure that poultryfarmers and others interested in the poultry industry will be able to obtain supplies of bran and pollard at reasonable prices?

Mr ARCHIE CAMERON:

– Poultryfarmers and others interested are able to purchase wheat from the Wheat Board at current market prices. The maintenance of supplies of bran and pollard is not quite so easy, for it is dependent upon our capacity to ship flour overseas. The sale of 100,000 tons of Australian flour to Japan, which was announced last night, will considerably improve the position with respect to bran and pollard.

Mr WILSON:
WIMMERA, VICTORIA

– In view of our inability to ship from Australia as much wheat as we should like to ship, and of the prospect that a large surplus of wheat may have to be carried over, and in view also of the probable increase in the demand for wheat after the war, I ask the Minister for Commerce whether the Government will take into consideration the provision of funds to facilitate the storage of wheat in Australia? It has been suggested that silos should be built for the purpose. I understand that an application for funds for this purpose has been made by the Government of Victoria.

Mr ARCHIE CAMERON:

– I sincerely hope that it will not be necessary to contemplate the storage of wheat in Australia over a number of years. I assure the honorable member that the subject of storage facilities for next season’s crop is at present engaging my attention.

page 200

QUESTION

AUSTRALIAN BUTTER

Mr BERNARD CORSER:
WIDE BAY, QUEENSLAND

– In view of the undue curtailment of the consumption of Australian butter on the British market, owing to the absence of price control there, and to the system of rationing that is in operation, will the Minister for Commerce communicate with the British Government with the object of securing more equitable treatment for, and an increase in the consumption of, Australian butter on the British market?

Mr ARCHIE CAMERON:
CP

– The difficulty in the United Kingdom is not that there is no price control, but that the price of ls. 7d., which has been fixed for Australian butter, is so high that the consumption of it has been restricted. The matter is receiving consideration.

page 200

QUESTION

SALES TAX

Mr PRICE:
BOOTHBY, SOUTH AUSTRALIA

– A good deal of concern is being shown in South Australia respecting a suggestion that the rate of sales tax is likely to be increased to 10 per cent. I understand that some forward purchases are being made on that basis. Is it possible for the Treasurer to give an indication of the intention of the Government on this subject so that the position may be clarified ?

Mr SPENDER:
UAP

– The financial policy of the Government on this matter and on other matters will be declared at the appropriate time.

page 201

QUESTION

CHILLED MEAT CARGOES

Mr PATERSON:
GIPPSLAND, VICTORIA

– I ask the Minister for Commerce whether he has yet received a report from the Government’s veterinary officers in London concerning the success or otherwise of the experimental consignment of lamb and mutton sent to England some months ago from New Zealand, the carcasses of which had been skinned by the Roach process, which involves the use of compressed air?

Mr ARCHIE CAMERON:
CP

– The report has not yet been received. When it comes to hand I shall communicate the contents to the honorable member.

page 201

QUESTION

TOBACCO IMPORTS

Mr THOMPSON:

– In view of the fact that the Government caused to be published some months ago a list of imported commodities which would be the subject of an embargo from nonsterling countries, I ask the Treasurer why no mention was made of tobacco in that list, as the imports of tobacco from the United States of America involve the diversion of nearly £2,000,000 in Australian currency to that non-sterling country ?

Mr SPENDER:
UAP

– As the honorable member is aware, the Government placed in “ category D “ certain goods which, at the time, were the subject of import prohibitions from non-sterling countries. Additions to that list are in contemplation. I shall make inquiries respecting the item mentioned by the honorable member.

page 201

QUESTION

APPLES AND PEARS

Mr HUTCHINSON:
DEAKIN, VICTORIA

– Is the Minister for Commerce able to give us any information whether the apple and pear acquisition scheme is proceeding satisfactorily or otherwise, and also whether any further advance may be expected by the growers in addition to the guarantee already made by the Government?

Mr ARCHIE CAMERON:
CP

– The scheme is proceeding much more smoothly than formerly. Whether a further advance will be made is dependent upon additional sales. At present I have no reason to believe that the payments already authorized will be the last.

page 201

QUESTION

CANBERRA HOUSING

Mr FORDE:
CAPRICORNIA, QUEENSLAND

– Is the Treasurer able to inform me whether it is true that the Government has withheld progress payments in respect of loans authorized under the Canberra Housing Loan Ordinance scheme? Is the honorable gentleman aware that builders, workmen, and borrowers have been seriously inconvenienced and that in some cases men have been thrown out of employment by the Government’s action in this regard? As many houses are in course of construction, will the honorable gentleman take steps to ensure that progress payments shall be renewed at the earliest possible moment?

Mr SPENDER:
UAP

– I am not aware that the situation is as stated by the honorable member, but I shall have inquiries made into the subject and communicate with him.

page 201

QUESTION

INCOME TAX

Mr ANTHONY:
RICHMOND, NEW SOUTH WALES

– Will the Trea surer inform me whether the instalment plan for the payment of Commonwealth income tax has been largely availed of by taxpayers generally? In view of the possible heavy increase of Commonwealth income taxation, will the honorable gentleman take steps to encourage taxpayers to make prudent reserves by providing that an equitable rate of interest shall be paid on moneys which taxpayers may lodge with the Treasury in advance of their income tax assessment to enable them to meet their commitments on the due date?

Mr SPENDER:
UAP

– The provision for the payment of income tax by instalments which was made last year has been availed of by some taxpayers, but not to a substantial degree. The object of the Government was to give taxpayers the opportunity to provide, without undue inconvenience, for the payment of their taxes. That opportunity will remain open. I shall give consideration to the suggestion in the second part of the honorable member’s question.

page 202

QUESTION

SHIPBUILDING

Mr PRICE:

– I ask the Treasurer whether the Government will take into consideration the advisability of making the Townsend report on the shipbuilding industry available to honorable members so that they may be au fait with the subject ?

Mr SPENDER:
UAP

– I shall convey the honorable member’s request to the Prime Minister, but I point out that the right honorable gentleman has already answered a question in somewhat similar terms.

page 202

QUESTION

PRICE OF SUGAR

Mr HOLLOWAY:
MELBOURNE, VICTORIA

– Seeing that there is a growing belief in the community generally that retailers of sugar are not getting a reasonable margin for handling sugar, I ask the Treasurer whether he has any power to deal with the matter, or if it must be left wholly with the Prices Commissioner ?

Mr SPENDER:
UAP

– I have no power that I know of to deal with this subject, which comes under the control of the Minister for Trade and Customs. I shall convey the honorable member’s question to my colleague.

page 202

QUESTION

TELEPHONE ACCOUNTS

Mr JENNINGS:

– I ask the PostmasterGeneral whether he will investi- gate and make a report on proposals that have been placed before the Department for the installation of telephone meters with the object of enabling telephone subscribers to keep a check on their accounts?

Mr THORBY:
CP

– I have not yet had an opportunity to examine the report. I understand that quite a number of subscribers have alleged that they have been overcharged. I shall be pleased to study the report, and to see if anything can be done to safeguard the position.

page 202

QUESTION

GOLD

Mr GREGORY:

– Will the Treasurer inform me whether the gold that is being produced in and exported from Australia is being sold at dollar values or at sterling? If it is being sold at dollar values, are the producers being paid on that basis ?

Mr SPENDER:
UAP

– Our gold is being sold on the dollar basis at the official rate of exchange. A statement on this subject will be made shortly.

page 202

THE WAR AND INTERNATIONAL RELATIONS

Ministerial Statement

Mr McEWEN:
Minister for External Affairs · Indi · CP

– by leave - The beginning of the new session has coincided with a momentous change in the character and direction of the war. At no time in our history has the average Australian felt such a deep interest and concern in the movement of world events. Consequently honorable members would bo justified in regarding as superfluous a mere recital of the developments that have occurred since Parliament last adjourned; but I should not be doing justice to the House if I refrained from offering a summary of those developments. In doing so, however, I shall endeavour to relate, so far as that is possible in all the circumstances, the opinion and conclusions which my colleagues and I have been able to form of the trend they are taking, and the implications they hold for our own position in Australia.

I would emphasize that, in forming its opinion on the situation as it exists today, and on the outlook for the future, the Commonwealth Government has at its disposal a very wide range of sources of information. The greatbulk of the official information received by the Government comes, of course, from London, where, in addition to the formal source of the Dominions Office, to which all dominion governments have access, the Commonwealth Government maintains as a branch of the Department of External Affairs an External Affairs Office. This office is in the closest contact with the vital centres of Imperial administration. It is located in the office of the War Cabinet Secretariat in Whitehall, and maintains as well continuous and daily relations with the Foreign Office. Besides the information derived from these sources, the Commonwealth Government is in receipt of direct reports from British representatives in countries in which Australia has particular interest, and communicates direct when the occasion arises with British diplomatic representatives abroad. With the establishment of an Australian Legation at Washington, the range of information from the United States of America in particular has, in the last few weeks, been greatly increased.

It will readily be seen that the Commonwealth Government is, therefore, in possession of that knowledge on which alone a considered and responsible point of view on world affairs can be founded, and it is hardly necessary to assure honorable members that . the Government is at all times in a position to express that point of view to the Government of the United Kingdom on matters of policy as they arise. The Commonwealth Government is, in fact, making full use of the system of close and constant consultation between the dominions and the United Kingdom which has grown in recent years, and in this respect I can say that our views are not only sought by the Government of the United Kingdom, but are also acted upon. In a very real sense, and, above all, during these months of war, the dominions have, in the common policy of the British Commonwealth, a voice which accords fully with their status and with the individual responsibility of each.

The situation at the present time is this : A stage has been reached at which, for perhaps the last time before we are engulfed in a desperate struggle, engaging the full strength of both sides, it is possible to survey the general field of international relations as they affect the war prospects of the allied countries. Such a survey will, I think, lead the House to the conclusion that whilst there is no reason to doubt the final outcome of the war declared against the arrogant ambitions of Nazi Germany, the struggle we have entered upon is of the most formidable character and one about which we have possibly not yet conceived the full difficulties.

A period of some seven months of relative military inactivity has come to a well-defined end, marked by the German invasion of Denmark and Norway and the operations in reply now in train from the Allied side. These are taking place in conditions which greatly encourage the hope that, in its latest aggression> Germany has committed both a political and a strategic blunder, and will in due course suffer for it.

The Scandinavian countries have been in the forefront of attention since the’ last stages, in February and March, of the Russo-Finnish war. It is important to remember that the present situation in “that region is closely related to the part played by Norway, and particularly by Sweden, during the period of Finnish resistance. It can be stated that the Allied plans for helping Finland) decided on early in February and carefully prepared throughout that month; came to nothing primarily because of the attitude of Sweden. Allied forces; sufficient to render large-scale support to Finland, were ready. The plan was to be set in motion by an appeal at the appropriate time from the Finnish Government. That appeal was never made. Sweden had indicated that, it would, if the request was put to it, refuse passage for the Allied forces across its territory. Undoubtedly in the full knowledge of this fact the Finns withheld their final request for assistance, and preferred instead to make terms with Moscow while terms were still possible.

What was the reason for the Swedish attitude? It is evident now that it was nothing less than sheer intimidation by Germany. It had been made clear to Sweden that the permitted passage of Allied troops across Swedish territory would mean a German invasion. In this form, Germany gave its complicity in the Russian conquest of Finland, and also sought to safeguard its own interests in maintaining Sweden as a source of supplies. The predicament of Sweden was a painful one ; it was forced to see earlier professions of Scandinavian solidarity go by the board, or bring down on itself an immediate and overpowering attack. It. is not hard, in the circumstances, to understand the motives for the Swedish decision. This episode, in fact, contains the whole explanation of the distorted conception of neutrality which lias revealed itself almost from the beginning of the war, not only in Scandinavia, but also in other neutral States adjoining Germany. In the re-examination of the

Allied position after the close of the Russo-Finnish war, it was inevitable that the implications of this fact should have been fully weighed. It was seen to be intolerable that neutral States should not only allow themselves to be terrorized into some course of action against their real inclinations, but would also suffer without effective protest German violation of international law, whilst expecting that the Allies should observe the rules, of war. This was the insidious process which had been going on for months through neutral acquiescence in the most outrageous acts of damage to neutral interests. Whilst Germany reaped with impunity all the advantages of illegality, to the Allies fell the disadvantages of scrupulous observation of the law of nations. One particular and damaging consequence was the increasing evasion by Germany of the Allied economic blockade. The Allies also lost in general prestige through their apparent impotence to secure equitable treatment of the claims which, by reason of the cause for which they were fighting, they felt justified in making upon neutral States.-

In reprisal at last for long-continued German violations of international law with regard to Norwegian shipping and the use of Norwegian territorial waters for submarine operations, the. Allied Governments decided to take action themselves which would preclude the use of Norwegian territorial waters as a traffic lane by the enemy. This was effected on the night of the 7th-8th April by the laying of mines at three points down the west coast of Norway. The immediate effect of this operation would have been to divert German shipping, in particular vessels carrying iron ore from Narvik, from the secure corridor of the Norwegian coast into the open sea, where it could be intercepted or otherwise dealt with by the Allied naval forces. Within 24 hours, however, . the whole situation was fundamentally changed by the sudden German invasion of Denmark and Norway. This action was represented by Germany as a reply to the Allied minelaying in Norwegian waters. But it is obvious that such an operation must have been long planned and indeed it is certain that some at least of the German units which occupied northern Norwegian ports were already in readiness along the Norwegian coast. The invasion is parallel with the German treatment of Scandinavian neutrals throughout the war. In the German view, these countries are to be treated solely from the aspect of German interests, in pursuit of which the Nazi Government has not hesitated to extinguish the independence of one inoffensive State - Denmark - and to deliver a violent -assault on another - Norway.

The Allied reply to this stroke has been characterized by promptitude and vigour and affords a striking illustration of what can be accomplished by sea power. Immediate attacks were delivered by the Royal Navy on the German naval forces covering the invasion, and on the German sea communications between Denmark and Norway. The Royal Air Force has also operated at sea, and has made successful attacks on certain of the German dispositions on land. The picture of last week’s fighting is now reasonably clear. Contrary to reports at the time, no largescale naval engagement took place, but in a whole series of isolated actions British naval and air forces inflicted heavy losses on German naval forces and shipping, very heavy in proportion to the total German strength.

The immediate object of Allied strategy is to liberate Norway from the German occupation, and these operations should be regarded as preparatory only at the moment.

British naval forces on the 13th April carried out a successful attack on Narvik and destroyed the enemy naval units stationed there. On the following day British soldiers landed near Narvik and after making contact with Norwegian troops began their task of driving out the Germans who are now defending positions on the railway east of the town. On the same day and two days later, Allied forces were landed elsewhere in Norway, despite enemy opposition at certain points, and these troops are already operating in conjunction with the Norwegian army.

The question arises as to what is the German aim in the invasion of. Denmark and Norway. It is ludicrous to suggest, as has been alleged by Nazi propaganda, that the object was to forestall Allied occupation of those countries. But the Germans may well have felt that there was a likelihood of their meeting increasing difficulties in maintaining their vital supply of iron ore, not merely down the Norwegian coast, but also from Sweden itself, and determined consequently to make the- supply secure. Such action would equally be an important factor in the German counter-blockade against Great Britain, by denying supplies to Great Britain from all three Scandinavian States. As against this, on the economic side, must have been set the inevitable losses of the sea-borne imports into Sweden, Norway and Denmark that were destined for transhipment to Germany.

From the strategical .point of view, the move, if successful, would give to the enemy strong bases on the Atlantic for aerial and naval action against Great Britain, lt would also be well calculated to force other neutrals by this further display of German strength into the German camp because of fear and intimidation.

It should not be overlooked that theinvasion might conceivably be a diversion to major operations elsewhere. Seeing that the Germans must have reckoned with’ the possibility of resistance in Norway backed by the Allies, and also with the probability of substantial naval losses, it is hard to avoid the impression that the operation was designed as pars of a larger plan.

Even as a limited objective with this purpose the German invasion may prove to be a blunder, in that the enemy losses are heavier and the prospects of holding out for a sufficient time. less than was probably anticipated. The superb dash and enterprise of the British Navy and Air Force must have given an unpleasant shock to the invaders. In order to avoid complete disaster, the Germans must struggle hard to maintain their communications endangered by naval attack and audacious mine-laying in Baltic waters, or else incur the further dubious commitment of forcing a passage through Sweden.

We may expect to see shortly the linking of Norwegian resistance to the

British land forces which have already disembarked along the Norwegian coast. North of Oslo the Norwegians are believed to be forming a defensive line, and elsewhere to be carrying on effective guerilla operations. The Norwegian people and Government themselves have shown a courage and patriotism which must serve to inspire other neutrals who may at any day be called upon to meet a similar incursion.

If the Scandinavian invasion is intended as a diversion to cover a move elsewhere, it appears on present evidence that the present countries most immediately threatened are Holland and Belgium. Neither of those countries, especially Holland, has found the path of true neutrality an easy one to follow. Both are. determined to defend their independence, although careful to avoid such precautions as might be considered provocative by Germany. On the Dutch frontier the Germans are believed to have moved several divisions in the last few days and can possibly concentrate there at the present time 30 or 40 divisions. Other signs of impending attack have been noted, including the familiar accusations from the Berlin propaganda machine that the Allies themselves are about to violate Dutch neutrality.

Any large-scale invasion of the Netherlands would inevitably affect the status of the Netherlands East Indies, a territory at our back door and our closest neighbour, the fate of which is of immediate and vita] concern to Australia.

In regard to this question the Japanese Minister for Foreign Affairs stated on the 14th April that Japan cannot but be deeply concerned by any development of the European war affecting the stains quo of the Netherlands East Indies. Should hostilities be extended to the Netherlands, and produce repercussions in the Netherlands East Indies, it would cause an undesirable situation from the aspect of the .peace and stability of East Asia.

Following on this significant statement, it will have been noted with gratification that the Secretary of State, in the United States of America has declared that intervention in the domestic affairs of the Netherlands East

Indies or alteration in its status quo by other than peaceful means would be prejudicial to peace in the whole Pacific area.

Further, this statement has been communicated to the Japanese Foreign Office.

The fact cannot be disguised that a German attack through the Netherlands, or through the Netherlands and Belgium combined, would be designed to be one of first magnitude against the Allies and would be delivered with all of the tremendous, striking force of a great modern army. Nonetheless, the Allies have had an interval of seven months in which to prepare their land and air forces and to make up in some degree the advantage in preparations for war on the wide scale which Germany had at the outbreak of war. If the attack comes the Allies are ready to meet it.

Honorable members must also bear in mind the possibility that Germany, in order to ensure that essential supplies from the Balkan countries should not be cut off, might invade Rumania, or other of those countries, and thus precipitate a further extension of the war in southeastern Europe. As a typical example of the pressure being exerted upon neutral countries in this part of the world, we have received official advice that Germany has compelled the Hungarian Government to forbid the press of that country from publishing pro-Allies news.

Some of the reports of possible German action extending beyond Scandinavia in the near future have envisaged the simultaneous entry into war of Italy on the side of Germany. It may be taken that the Allied Governments have certainly not been indifferent to the change of tone in recent Italian comment on the progress of the war. Up to two or three weeks ago, the Italian press was at pains to make some show of impartiality between Germany and the Allies. Since the invasion of Denmark and Norway, however, comment in Italy has swung over almost entirely to the acceptance of the German view. “Whether this change is significant or not, events will show. The Allies have no quarrel with Italy. They have in fact repeatedly expressed the desire for harmonious and friendly relations, and in the difficult business of fitting the requirements of economic warfare against Germany into the legitimate interests of neutrals, they have endeavoured to show due regard for Italy’s position.

The war aim of the Allies is to crush Hitlerism and to put an end once and for all to the threat of German domination of Europe, and of the extinction by force of the independence of small nations. The whole of the civilized world condemned the unprovoked Russian attack on Finland and the Allies were ready to give aid to Finland. But with the- Finnish war over there is no strong reason at present to suppose that Russia is contemplating any further adventure which would bring it into conflict with Allied interests. It is impossible to say whether the conquest of Finland represented the final part of the price which the Soviet extracted from Germany in return for the Berlin-Moscow Agreement of August, 1939; but, at present, signs are lacking that the understanding between these two dictatorships does, in fact, go any deeper. The ominous hints from Berlin after the Hitler-Mussolini meeting shortly before Easter of a tripartite GermanItalianRussian agreement for combined action have so far come to nothing. What German-Italian understanding was come to at the Brenner, if any, is unknown; but the last month has brought no indications at least of any deeper RussoGerman complicity. On the contrary, it appears that the Soviet Government has tended once more to draw aloof from the affairs of Europe, and that for the time being, it is of the view that Russian interests would be best served by continued detachment.

Turkey, now a strong, united and coherent nation, has carried out most loyally its obligations under the AngloFrancoTurkish treaties and, by its economic agreements with the Allies, is now free from economic dependence on Germany. If the war should extend to the Mediterranean, Turkish assistance in meeting the new situation would be most valuable. Meanwhile, Turkey acts as a strong stabilizing influence in the Balkans.

In turning to the Middle East, we come to an area which has a special significance and interest for Australia. Even before the outbreak of war, Australian history abounded with memories of Egypt, the Dardanelles and Mesopotamia, and these historical connexions have now been renewed. In the strategic sphere we have always realized that the control of the Middle East involves the control of our imperial life-line, and that unfavorable developments in this area threaten, not only India, but also the direct line of communications between Australia and Britain. Finally, there is the personal factor, in that we now have thousands of young Australian soldiers already stationed in the Middle East.

This being the case, it is gratifying to observe that conditions in the various middle eastern states are at the moment stable. Egypt, upon whose co-operation depends Britain’s defence of the Suez Canal, has carried out scrupulously its obligations under the Anglo-Egyptian Treaty, and shortly after the outbreak of war severed diplomatic relations with Germany.

In Iraq, the Government, after affirming its attachment to the Anglo-Iraqi Treaty of Alliance, also severed relations with Germany, and its friendly attitude to the Allies has not been altered by recent changes in the Iraqi Government.

The Emir of Transjordania has declared his loyalty to Britain, while in Syria, conditions under the French High Commissioner are quiet.

Iran and Afghanistan have adopted policies of strict neutrality, although both these countries have viewed with anxiety the reappearance of an aggressive Russia. . There is, however, nothing at the moment to point to the immediate likelihood of Russian attacks on any of the middle eastern countries.

In Palestine, the internal position greatly improved, after it was realized that Britain was fully determined to implement the terms of the White Paper policy, and the new land regulations have gone far to dispel the doubts of the Arabs as to their future position..

In Arabia, King Ibn Saud has been most friendly to the Allies and the considerable volume of anti-British propaganda in the Yemen has apparently had little effect. Indeed, Islamic sentiment throughout the Middle East is much more friendly than might have been the case had Palestine been less settled; and the Arab States, which have watched closely the course of German aggression, evidently feel that their free and peaceful development is bound up with the Allied cause. In the general state of Arab opinion and the Turkish alliance, the Allies have two most important factors in securing stability in the Middle East.

In the Far East, the publicly proclaimed policy of Japan is to devote its energies to the execution of the war in China while adopting an attitude of strict non-intervention in thu European conflict. Apart from the Japanese drive which led to the occupation of banning in southern China, military operations for many months past have been relatively unimportant. The outstanding recent eventhas been the institution of Wang Ching-wei’s new government in central China under Japanese control and support. The inauguration of this regime probably represents a desire on the part of Japan to obtain some measure of relief from the heavy burden of maintaining its position in China, and the Japanese Government evidently hopes that this move will limit the scope and intensity of the war in the Far East. In an announcement regarding the establishment of the new government, it was stated that the Japanese Government wished to share with third Powers the benefits of international amity, whilst both Wang Ching-Wei and the Japanese Government have expressed the desire that China should be re-opened to the peaceful economic activity of third Powers who accepted the new situation in East Asia. However,, it remains to be seen whether the term “ new order in East Asia “, which has been so frequently used by the Japanese, will still involve discriminatory action against the interests of outside Powers in China.

Japan’s relations with the United Kingdom during the last few months have been marked by certain of those incidents which must inevitably arise between neutrals and belligerents in wartime. The necessity to ensure that contraband is cut off as completely as possible from the enemy must always involve some inconvenience for neutral Powers, but it is pleasing to note that in the one case in which the stopping of a Japanese ship gave serious concern to Japan, an amicable settlement was reached. This was the occasion on which a British warship removed German passengers of military age from a Japanese ship, the Asama Maru. After discussions, an agreement was reached whereby certain of the men were released, and the Japanese Government instructed shipping companies not to grant passages to citizens of belligerent Powers capable of war service.

It is satisfactory to know also that a settlement is in sight on the questions regarding Tientsin which were raised last year. It is the hope of the British Government, in which we share, that an agreement on these matters may lead to the elimination of recent causes of friction between the two nations and the establishment of Anglo-Japanese relations on a basis of increased and lasting friendship.

The United States of America has continued to pursue a course of strict neutrality towards the conflict in Europe, but there can be no doubt that Germany’s continued acts of aggression have considerably shaken American confidence that this course can be maintained. In particular, Germany’s ruthless invasion of its small and inoffensive northern neighbours has brought home to Americans the fact that the European war is perhaps not so far distant from their shores as they had believed, and that a German victory must directly affect the future of their own country. President Roosevelt’s anxiety concerning the situation earlier in the year was demonstrated by his action in sending Mr. Sumner Welles as a special envoy to report firsthand on conditions in Europe. As a consequence of Mr. Welles’s visit Germany put about rumours of so-called “peace plans “. These rumours, however, were dissipated by a public speech in which President Roosevelt declared that there could not be lasting peace if the fruit of it were to be oppression, starvation and cruelty, or if human life were to be dominated by armed camps.

Whilst Americans favour a policy of neutrality, it is undeniable that opinion is predominantly anti-Nazi and in many quarters is favorable to assisting the Allies by any means short of going to war. Since Congress on the 4th November passed a bill to amend the Neutrality Act, the United States of America has been free to sell arms and munitions of war to belligerents. The Administration is assisting the joint Anglo-French Purchasing Board to obtain expeditiously the Allied needs of the latest types of aircraft and other necessary supplies.

A further step was taken in the maintenance of the most cordial relations with America when on the 5th March the first. Australian Minister to the United States of America presented his credentials to President Roosevelt at the White House. Mr. Casey on this occasion expressed the hope that the establishment of the Australian Legation would further advance the friendship between Australia and the United States of America which was already well founded on the basis of mutual interest, common political ideals and similar ways of life.

In reply, President Roosevelt reaffirmed his abiding sentiment; of goodwill towards the Government and people of Australia, and expressed the confident hope that the exchange of Ministers between the United States of America and Australia would tend to strengthen still further the friendly relations between his country and the British Commonwealth of Nations.

In conclusion I would like to say that the survey I have given will have shown how many doubtful elements there are in the prospect ahead, not merely in the actual theatre of war, but also in the alinement of political and diplomatic forces generally. So far as the enemy is concerned, the German leader is a desperate and determined man, with a deep-seated lust for power, and under his control is a mightyfighting force. He is not bound by any scruples of morality and legality, and at any moment he thinks fit he may make new moves which would involve new dangers. To face such possibilities the British Empire and its Allies will need all their determination and courage and the fullest organization of their resources. It is the Government’s firm resolve, and I am positive the reserve of the whole of the Australian people, that Australia should play its full part in removing from the world this evil force which threatens all we hold most vital.

Mr CURTIN:
Leader of the Opposition · Fremantle

– by leave - The statement which the Minister for External Affairs (Mr. McEwen) has read is a very important statement, and, if this House is to treat it as an annexure to the Speech which His Excellency the Governor-General delivered iu calling Parliament together, honorable gentlemen are put iu a somewhat difficult position in having, in the time which the Standing Orders allot to them to-discuss the Address-in-Reply and all matters covered in the Address-in-Reply. to deal with the particular phases of the problem which are outlined in the statement that the Minister has just made. For myself, there are in that statement certain very important developments which do affect this country in a much more definite way (hari we were led to expect from the statements made by the then Minister for External Affairs (Sir Henry Gullett) at the end. of last, session. There are two things I. .take out for example. The first is that, this statement to-day says that there is stability in the Middle East at present, which, having regard to other portions of the statement, contrasts with the portentous instability in areas and places much closer to our own country.

Mr Blain:

– The honorable gentleman manufactured that yesterday.

Mr CURTIN:

– It is not what I say, but what the Minister for External Affairs has said in his statement. He tells us that it is gratifying to observe that the conditions in the various Middle Eastern States are at the moment stable. He then goes on to describe why that generalization appears in the statement. Now, I quite agree with that, but I also agree that the inclusion of the words “ at the moment “ is perfectly legitimate,, and is a reasonable statement of the case ; I am not quarrelling with it, but when the House last adjourned, we were looking at a prognosis of this war’s course. That, I venture to say, has been greatly altered in its scope by the developments which have occurred since. At that time, Norway had not been invaded. At that time, Denmark had not been occupied and its Government evicted by the Germans. At that time, the possibilities of further actions of that kind by the German Government and that nation against other European powers with important colonial possessions was not contemplated.

Sir Earle Page:

– Not contemplated ?

Mr CURTIN:

– I mean not indicated to this House, as being an early probability. What was indicated to this House was the importance of the trade communications and the highways of commerce between Australia and the United Kingdom, and of°the Mediterranean and the Middle East. That was indicated, and, in pursuance of that, the Government announced a programme which involved the despatch, of certain Australian forces to the Middle East. I am not in any way commenting on that at this stage other than to say that in the statement’ which has been read to the House to-day, the Minister for External Affairs surveys internal relations generally and ‘tells this country that the position in the Middle East is at the moment stable, but that the situation elsewhere is not so stable as we had hoped it would be.

Mr Hughes:

– The whole position is unstable. That is the point.

Mr CURTIN:

– Of course, the whole position is unstable. The Minister in his statement directs attention to what can quite reasonably be an early apprehension as to the course of this war, which, if it should mature, inevitably affects the status quo of territory at our back door and our closest neighbour. That is tho statement made to-day by the Minister, and in respect of that imminent possibility and that most serious contingency from our point of view, he says nothing to us of what this Government contemplates, nothing in respect of what this Government has declared to the world ; but he tells us what two other governments have said, neither of which is at present involved in the war. We have a livelier interest and indeed a much graver responsibility in this connexion than has either of those two governments.

Mr Gregory:

– At present it would be better if we minded our own business.

Mr CURTIN:

– That argument is the very negation of what was called the philosophy of collective security. It is the very opposite indeed to all that we were allowed to expect as being necessary to ensure that democracies would not be carved up one by one. I am not here to-day to do anything or say anything which would make the difficult position worse. Let that be clearly understood. I can quite see that the general purport of the statement should be considered by this Parliament in the light of whatI would say to be the first responsibility of this Parliament, which is that, if there are developments which are significant and which affect our own back door, that phase of the war is, for us, a much more intimate and serious matter than some other phases which hitherto have received a very great deal of governmental attention. That is not a statement about which honorable gentlemen should get angry, or be disposed to interrupt its making, as the honorable member for the Northern Territory (Mr. Blain) appears to be so anxious to do.

Mr Holt:

– Move that the Minister’s statement be printed.

Mr CURTIN:

– I cannot do that, because the statement has not been tabled. We gave the Minister leave to make a statement. He did not table it, and it is not a ministerial document. That is the reason why I have taken the courseI have.

Mr McEwen:

– I am prepared to lay the statement on the table, and move that it be printed.

Mr CURTIN:

– I thank the honorable gentleman, but I do not wish to speak twice. I merely say that the Government owes it to the country to intimate to this Parliament what is the declaration of view that it has made to the world concerning the status quo in certain places, and what it is doing to encourage respect for the status quo by all of the countries that are concerned. Then, in addition to that, I direct further attention to what I consider to be the very great importance of ensuring that, in , the utilization of our defence forces, and in the plan of home defence that the Government has in mind, we shall make certain that we shall have the requisite forces at such focal points in Australia as to enable us, if asked, to do something decisive to preserve that status quo and to ensure that in no circumstances would there be avoidable delay.

Mr Anthony:

– Does the honorable member not think that the presence of large Allied forces in the Middle East is greatly responsible for the stability there ?

Mr CURTIN:

– On the same principle . the presence of large Australian forces on the northern coast and the northwestern coast of this Commonwealth would also tend to ensure stability in this portion of the world with which we are concerned.

The following paper was presented : -

International Affairs - Ministerial Statement by the Minister for External Affairs, 19th April, 1940.

Motion (by Mr. McEwen) proposed -

That the paper be printed.

Debate (on motion by Mr. Curtin) adjourned.

page 210

QUESTION

MILITIA

Dental Treatment

Mr THOMPSON:

– Can the Minister for the Army say whether any proper investigation has been made into the complaints that inadequate dental staffing and equipment exists at the various militia camps? If so, will he indicate to the House the result of such inquiry? By way of explanation, I mention that a dentist informed me last week that he had just left the camp where he was in dental charge of 3,000 men, and that he had been given no equipment but had to provide it ata cost of £10 to himself, and had received no refund from the military authorities.

Mr STREET:
UAP

– As regards dentistry it is not the practice in militia camps to do more than afford relief from pain. In the Australian Imperial Force camps complete dental treatment is given. I have no knowledge of the circumstances to which the honorable member has referred, but if he will supply me with particulars I shall have them investigated.

page 211

QUESTION

NORTHERN TERRITORY

Basic Wage

Mr BLAIN:

– In view of the fact that the basic wage at Darwin where residents depend for food supplies on ship transport over 2,000 miles is £4 13s. 9d. a week, and that the basic wage at Alice Springs, to which supplies are transported by rail from Adelaide, a distance of 1,000 miles, is many shillings less each week, will the Minister inform the House what is the basic wage at Canberra?

Mr NOCK:
Minister without portfolio assisting the Minister for the Interior · RIVERINA, NEW SOUTH WALES · CP

– The basic wage at Canberra is £4 12s. 6d. a week.

page 211

QUESTION

INDUSTRIAL INSPECTORS

Mr CONELAN:
GRIFFITH, QUEENSLAND

– Is the AttorneyGeneral in a position to say whether the duties of the new industrial inspectors who are to be appointed will in any way interfere with the duties of the vigilance officers or union secretaries?

Mr HUGHES:
UAP

– As I understand the honorable gentleman’s question, the answer is “No”. The inspectors are intended to police awards, and they therefore will supplement and support the vigilance officers insofar as those officers themselves police awards.

page 211

QUESTION

COST OF LIVING

Canberra - Northern Territory

Mr LANE:
BARTON, NEW SOUTH WALES

– Will the Treasurer institute an exhaustive inquiry into the cost of living in Canberra, in order to ensure that entirely incorrect prices are not published as was done recently by the price-fixing authorities?

Mr SPENDER:
UAP

– I shall see that consideration is given to the representations of the honorable member.

Mr BLAIN:

– In the event of an inquiry into the cost of living , in Canberra being conducted, I ask the Treasurer if he will consider including the Northern Territory in order that a basis for a cost of living index figure for that portion of the Commonwealth may be obtained?

Mr SPENDER:

– I shall see that the subject-matter of the honorable member’s question is brought under the notice of the Minister for Trade and Customs.

Mr LANE:

– Will the Treasurer have inquiries made into the reports of the exploitation of the poorer classes in Can berra in respect of hire-purchase agreements and interest charges by money lenders? By way of explanation,I mention that some time ago it was reported that a magistrate told a money lender that he had charged 100 per cent. interest. Will the Treasurer see whether such practices still continue, and will he place restrictions on the charges made in respect of bicycles and other articles used extensively by persons in receipt of low wages ?

Mr SPENDER:

– I shall have inquiries made immediately to see whether there is any exploitation, and, if it is found that exploitation is taking place, steps will be taken to deal with the offenders.

page 211

QUESTION

FINANCIAL ASSISTANCE FOR MAGNESIUM COMPANY

Mr MAHONEY:

– Yesterday I asked the Prime Minister a question in relation to representations made on behalf of a magnesium company for the production of aluminium in Tasmania, and also in connexion with a report by officers of the Council for Scientific and Industrial Research. I also asked whether the Commonwealth Government would advance £20,000 for the establishment of a pilot plant for the production of aluminium in Tasmania. Is the Minister for Supply and Development in a position to provide an answer?

Sir FREDERICK STEWART:
UAP

– As I intimated yesterday in reply to a similar question, I am to receive next week a deputation from Tasmania, which I understand will include the Minister for Mines in that State. I also understand that the subjects which have been referred to this morning will be included among those to be discussed at that deputation.

page 211

QUESTION

IMPORTATION OF GRAPEFRUIT

Mr BERNARD CORSER:

– Will the Treasurer made representations to the Minister for Trade and Customs so that the Tariff Board may be instructed to inquire into the importation of foreign grapefruit into Australia, and the effect of such importations on the Australian market in the early months of the calendar year?

Mr SPENDER:
UAP

– Yes.

page 212

QUESTION

NORTHERN TERRITORY

Cotton Industry

Mr BLAIN:

– Is the Minister repreesenting the Minister for Trade and Customs in a position to say whether members of the Tariff Board have read a recent report by the manager of the Queensland Cotton Board, Mr. Young, to the effect that if a five-year guarantee were given to the cotton-growers of North Australia and Queensland, the position in respect of foreign exchange could be greatly improved? In the event of the Tariff Board not having read that remarkable document, will he instruct its members to do so, and to report on the probable increase of the population of Australia which the adoption of a fiveyear plan would cause?

Mr SPENDER:
UAP

– I personally do not know what documents are read by members of the Tariff Board, but if the report referred to by the honorable member is such a remarkable document that it should be read by them, I am sure that it will be.

page 212

QUESTION

APPLES AND PEARS

Mr SPURR:
WILMOT, TASMANIA

– Is it true that there is a large surplus of apples in Tasmania, and that good fruit has been used tofeed pigs while many people throughout Australia are unable to purchase apples because of the high prices charged for them?Will the Acting Leader of the House arrange that the Apple and Pear Board will make apples available to Australian consumers at reasonable prices, and thereby increase the consumption of such fruit? Will he also see that any surplus crop, instead of being destroyed, is made available to charitable institutions free of charge?

Mr ARCHIE CAMERON:
CP

– I have already supplied an answer to a similar question asked in the Senate.

Mr Makin:

– Why not answer the question here?

Mr ARCHIE CAMERON:

– I want to ensure that if the question is the same the answer also is the same.

Mr LANE:

– Can the Minister for Commerce say when he will make a statement to this House concerning his investigations into the operations of the Apple and Pear Board, and will he make it here instead of having it made in the other branch of the legislature?

Mr ARCHIE CAMERON:

– Any statement that I have to make in relation to any matter affecting the departments under my control will be made in this House.

page 212

QUESTION

AIR FORCE

Clerical Positions

Mr JENNINGS:

– In view of the fact that there are many desirable applicants for clerical positions in the Air Force up to the age of 55 years, will the Minister for Air give consideration to an extension of the age limit for appointees?

Mr FAIRBAIRN:
Minister for Air · FLINDERS, VICTORIA · UAP

– The Air Board has extended the age limit to 45 years in respect to some musterings in the Air Force. If, because of a shortage of clerks, it is found necessary to extend the age still further, consideration will be given to the honorable member’s suggestion.

page 212

QUESTION

GOVERNOR-GENERAL’S SPEECH

Address-in-Reply.

Debate resumed from the18th April (vide page 162), on motion by Mr.

That the following Address-in-Reply to the speech of His Excellency the Governor-General be agreed to: -

We, the House ofRepresentatives of the Parliament of the Commonwealth of Australia in Parliament assembled desire to express our loyalty to our Most Gracious Sovereign and to thank Your Excellency for the Speech which you have been pleased to address to Parliament.

Mr DEDMAN:
Corio

.- The circumstances surrounding my entry into the Commonwealth Parliament are not entirely unique. The Corio by-election was not the firstbut the fourth byelection during the term of this Parliament, and it is a significant fact that each of them was won by a representative of the Australian Labour party. Evidently the party’s star is in the ascendant and I therefore look forward confidently to the next general elections, when I believe that the people of Australia will entrust the government of this country to the Australian Labour party. The contest in Corio had, however, certain somewhat. unique features; it was thefirst byelection to take place since theoutbreak of war and it was deliberately staged by the Government. The other three byelections to which I have referred occurred involuntarily, because of the death of the individuals who represented the electors in certain districts. During the campaign in Corio the anti-Labour press made a great feature of the representative character of the electorate. The press pointed out that the district was in part metropolitan, in part a provincial city, and in part rural ; and also that it represented a great variety of interests, chiefly industrial, in the metropolitan and provincial city portions, and primary production in the remainder. To this representative electorate, which contained a typical cross-section of Australian public opinion, the Government candidate submitted the Government’s policy; to the same electorate I, as the nominee of the Australian Labour party, presented that party’s policy. The result of the byelection was an emphatic rejection by the electors of the Government’s policy and their overwhelming support of that submitted by the Australian Labour party. I, therefore, felt somewhat disappointed as I listened to the Speech of His Excellency the Governor-General, prepared on the advice of his Ministers, to find that the Government proposed to go on exactly in the same old way. It has evidently not learnt anything from the Corio byelection.

It would be impossible for me, in the time at my disposal, to cover all of the aspects of public policy included in that speech, and also to cover many other aspects of it. not so included. I shall, therefore, confine myself to some critical observations on one or two points.

First, I compliment theGovernment upon its conversion to afundamental principle of sound finance which has been advocated by the Australian Labour party for a good many years. It is true that the Government has not openly stated its conversion. It had not the “guts “ to do so. It. is true also that we can only gather that it has been converted by noting certain implications in the GovernorGeneral’s Speech. They are plain enough to be seen. I direct attention particularly to the following phrase from the Speech : “ In view of the approach to conditions of full employment of our resources . . . “, and so on. That statement is a justification for drawing the inference that the Government has been -converted to what is known as “ the full employment theory “ of public finance. That theory has been advocated by the Australian Labour party for at least the last ten years. I advocated it in Corio in 1934 when I was defeated. This sound principle of public finance is no longer an academic theory. It is, in fact, taught and advocated in all the universities of Australia. One of its foremost exponents is Professor Copland, who is,I understand, one of the financial advisers of the Government. This principlehas already been adopted by Japan and Germany and is, in fact, the basis upon which Germany has been able to build its tremendous military machine within the last few years. It is a tragedy that the first application of this great and beneficent principle should have been for the purpose of constructing armaments in both Germany and Japan. Nevertheless we may learn from evil. We may learn from the experience of Germany and Japan that by the application of this principle it is possible to utilize the vast resources of any country so long as its man-power is capable of using them. Money, in the old classical sense, no longer exists. The only limit to our ability to make goods for the use of our people is the ability of our man-power in its application to our raw material. I desire this House and the country to realize what would have happened if this principle had been applied to our affairs in the past. Let us recall the disastrous unemployment in this country during the last ten years. Let us recollect, too, the suffering and misery due to the neglect of the provision of proper housing conditions and of better social services. All this would have been entirely unnecessary had the Government of the day accepted this proposal years ago, instead of at this belated hour. I find it rather curious that this Government has only adopted the principle in time of war and would not accept it in peace time. Now that war has come upon us, the Government has accepted the proposal in order to manufacture implements of destruction. It would not accept it, in peace time, to provide the amenities of life which would have contributed to the satisfaction of the needs of our people.

This principle could have been applied in several ways. The Government, unfortunately, has chosen one of the least acceptable of these ways. It will be recollected that it has recently borrowed £10,000,000 from the banking system. I believe that endeavours have been made to find out the proportion of that loan which was subscribed by the Commonwealth Bank and the proportion of it which was subscribed by the private trading banks. That information, I understand, has never been made available. I can only surmise that a considerable portion of that amount was subscribed by the private trading banks at 3^ per cent, interest. Because of the transaction the Government taas put the people of Australia in pawn to the private trading banks at 3-J per cent, interest, when it could have obtained the money free of interest from the Commonwealth Bank, which belongs to the people of this country.

It is true that the Government, under its financial policy, did some- very good things indeed, but it did them in the wrong way. For instance, it has been responsible for a reduction of interest rates. When the war broke out the bond yield, that is, the effective rate of interest on the market price of bonds, was about £3 17s. 6d. per cent. Honorable members will understand that if a £100 4 per cent, bond is brought on the market at £105, its yield is something less than 4 per cent. If the same bond is bought on the market at £95, the yield is something more than 4 per cent. That is what is called the bond yield. Although the bond yield at the outbreak of war was about £3 17s. 6d. per cent., it rose, in the first month of the war, to something more than £4 per cent. Since then the yield has gradually receded until it is now approximately £3 ls. 6d. per cent. What has been the. cause of this fall in the interest rate ? The fall, of course, has been a very fine thing. What has happened is that the Commonwealth Bank has been purchasing securities on the open market. There had not been very much done in that way in Australia until recent years, but the Bank of England has been purchasing securities on the London market for many years. It is what is popularly known as “ The Hidden Hand because the results of the operations are never published. Now the Commonwealth Bank, no doubt at the instigation of the Commonwealth Treasurer, is purchasing securities on the open market. The result has been that the price of these securities has risen which, in turn, has meant that the effective interest rate has actually fallen.

That is all very well so far, but I wish to trace the effects of these transactions a little further. Most government bonds are in the hands of private investors, and when the bonds are sold on the market by other banks those banks get a cheque drawn on the Commonwealth Bank as the buyer. Investors at the time of which I am speaking bad plenty of money about, for which they could not find investments, so the private trading banks, instead of drawing the money from the Commonwealth Bank, increased their deposits with that bank. I leave the matter there for the moment. .

Every one knows that it is a fact that the private trading banks can, and do, create credit money every day of the week. Every purchase of securities by a bank creates a deposit and every sale by the bank of such securities destroys one. The limit to the power of the private trading banks to create credit money depends upon the proportion of its cash reserves to its liabilities. But what the private banks call cash is not what the ordinary individual calls cash. Cash, according to the private trading banks, is notes, coin and also its deposits with the Commonwealth Bank. The fact is that the purchaser of securities on the open market by ‘the Commonwealth Bank has actually increased the cash deposits of the private trading banks with the Commonwealth Bank. As I have already pointed out, this is the factor which controls the creation of credit’ by the private trading banks. The results of these transactions between the Commonwealth Bank and the private trading banks is . to create a capacity on the part of the private trading banks to lend money to the Government at 3-J per cent, interest.

I realize that this is an extremely difficult subject to explain, particularly by a member who is making his maiden speech in the House, but I make the effort because I think it is of such very great importance. This is one of the greatest ramps “ put over “ the Australian people. Instead of borrowing money free of interest from the (Commonwealth Bank, as it could do, the Government has been extending the capacity of the private trading banks to create more credit, for it has been borrowing from them at the rate of 3A per cent.

I shall return now to the fundamental principle of sound finance to which I had referred before I discussed the subject of interest rates. The point is that to the extent that there are unemployed resources available in this country, the Commonwealth Bank could make available to the Government, free of interest, and without any fear of inflation, sufficient money to utilize these unused resources to their fullest extent. That is the modern definition of the ability of a central bank in any country to finance Iiic resources of that particular country, t point out that the full utilization of resources includes not only man-power, but also capital equipment and raw materials. As I have already stated, none of the unemployment that has existed over the last ten years was at all necessary; all of it could have been avoided. This Government, which is boasting of the war effort it is making to-day, is not using the immense resources of this country to anything like their fullest degree. It is ridiculous to say that the man-power resources of Australia are approaching the condition of full utilization, seeing that every honorable member of this House is daily bombarded with applications for employment, and there is a list of 40,000 men waiting to get into the munitions establishments in the city of Melbourne alone. In every centre in which men are registered for employment there are long lists of individuals waiting for the chance of a job. Therefore, I repeat, it is absurd for the Government to make the statement that in regard to man-power our resources are nearly approaching the stage of full utilization. Another aspect of manpower was mentioned by one of my col leagues this morning, in a question that he put to the Treasurer (Mr. Spender) in relation to the employment of crippled individuals. Some of these persons are perhaps drawing a pension, or relief in some form or other. If a suitable occupation were found for them, they could be given a full-time job. Were the government desirous of utilizing the manpower resources of Australia to their fullest capacity, it would see that jobs were selected for which crippled members of the community were fitted and thus release from them able-bodied men who could undertake other full-time work. There is a reservoir of man-power which the Government has never attempted to tap, in addition to the immense volume of unemployment that exists to-day. To enable honorable members to visualize what is implied by the fullest employment of resources, I shall draw a picture of a country that has occupied that position. During the last war, 7,000,000 men in Great Britain were taken from ordinary peace-time production, and into their places were drafted the unfits and the misfits. The womanhood of the nation also was drawn on, and youths growing up were employed until they had reached the age at which they could go on active service. Others who had retired from productive work were again drawn into productive employment. The whole of this peace-time activity of Great Britain was continued after 7,000,000 men had been withdrawn from industry. That labour force not only carried on the peace-time activity of the community, but also kept the 7.000,000 men supplied with the sinews of war. That is a picture of a country at the stage of the full utilization of iis« resources. Is this country anywhere near that stage at the present time? I say emphatically that it is not. Therefore, I criticize the Government for its assertion that we are approaching the condition of the full employment of our resources.

I have dealt with man-power. Let us now consider the matter of capital equipment, which, as I have indicated, is also included in the economist’s dream of resources. The capital equipment of this country is not being used to anything like its fullest degree. Take, for example, a factory that is working one shift a day. If we needed to increase production, it would be quite easy to use that capital equipment for 24 hours a day. I am quite sure that if proper safeguards were provided the workers of this country would not object to its capital equipment being used to a greater degree, and in a more efficient way, than is the case at the present time, in an effort to improve the defences of this country, and help to bring to an end the aggression of Hitlerism. Provided that national interests, and not those of private profiteers, were promoted, I am confident that the workers would not object to shift work. So I say that the capital equipment of this country is not being used most efficiently in regard to the production of either peace-time goods or goods that are necessary for the conduct of the war. Then take our raw materials, which also are included in the economist’s dream of resources. We are to suffer from a shortage of petrol in order that the dollar exchange may bc conserved. I understand that the Government contemplates the rationing of petrol. Yet there are in Australia immense deposits of shale, from which all of the petrol we need could be derived. These resources could be explored by means of capital provided by the central bank of this country under the principle that I have enunciated to-day.

Mr Blain:

– The same thing applies to the cotton industry.

Mr DEDMAN:

– It applies to the cotton industry in the north and to the flax industry in Tasmania. Land which is not being properly utilized to-day could be used to provide those commodities of which Australia is running short. All of these things could be done by the application of the fundamental principle of public finance. Whenever men, raw materials, and capital equipment are lying idle, these resources could be utilized by means of credit provided by the central bank. The Government is not utilizing these resources to the fullest degree, nor is it making use of the Commonwealth Bank in such a way as to promote the best interests of the people of Australia.

I have shown how the Government has worked in the interests of the private trading banks. I now say that one of the reasons why the Government affirms that we are approaching the stage of full utilization, and consequently the issue of credit by the Commonwealth Bank is to be stopped, is that its supporters represent the moneyed interests of this country and do not want interest rates to be lowered still further. I ask those honorable members particularly who supposedly represent the primary producers what could have been saved to those primary producers had interest rates been lowered during the last ten years to the degree that they have been lowered during the last few months. The bond yield has been lowered from £3 17s. 6d. at the outbreak of war to £3 ls. 6d. at the present time. Whenever there is a reduction of the bond yield, there is a consequential reduction of the rates on mortgages. Had this Government endeavoured to lower interest rates years ago, the primary producers of this country would have been saved millions of pounds on their interest bill. In my opinion, the reason why the Government at this particular stage is changing its policy from the utilization of Commonwealth Bank credit to some other means of finance is that it stands for the moneyed interests, who do not want interest rates to be lowered to the figure at which they should stand. There are means other than those chosen, by which interest rates could be reduced. That very great economist John Maynard Keynes suggested that the central bank in England should issue treasury-bills and starve the investing section of the community of avenues of interest until they were prepared to invest their money in Government bonds at an interest rate of, say, 2 per cent. This Government could have done exactly the same thing; it could have issued treasury-bills, and starved the investing section of the community of avenues of investment until that section was prepared to lend its money to the Government for war purposes at as low a rate as, say, 2 per cent. It could also have used its powers under the National Security Act to cut off avenues of investment, with a similar effect. But it is not prepared to do that. Having utilized to only a slight degree the powers of the Commonwealth Bank to finance the resources of this country, it is now resorting to borrowing because, it says, those who support it want to lend their money and draw interest upon it. It therefore proposes to cease the policy of financing its projects by utilizing the credit of the nation.

There are many other matters upon which I should like to touch, but I feel that were I to do so I should not have sufficient time to give a complete explanation of them, and when one enters upon a subject one likes to make a good job of it. I shall therefore reserve for a future occasion my comments on those matters. I was, however, struck by one of the phrases in the Speech delivered by His Excellency the Governor-General, on the advice of his Ministers. Referring to Hitlerism, this phrase is used -

These things constitute the gravest challenge to Chris tin n civilization.

I believe that statement to be true. But I further believe that the conditions that have existed in this country during the last ten years have also constituted a grave challenge to Christian civilization. I do say that it savours to me of hypocrisy for the Government to direct its attention to a challenge to Christian civilization away off on the other side of the world, and to be blind to a challenge to Christian civilization right here in Australia. I hope that, after the next general elections, my party will be in a position to meet the challenge to Christian civilization here in Australia.

Mr HOLT:
Fawkner

.- I congratulate the new honorable member for Corio (Mr. Dedman) on the way in which he has delivered his maiden speech in this House, t must qualify my congratulations to this degree: While I congratulate him on the self-confidence and easy assurance of his delivery, I cannot congratulate him with the same enthusiasm on the matter of his talk. We have been entertained rather than instructed by his talk on finance. We have always been brought up to believe that dead men toll no tales, but I fear that this Dedman is going to repeat on many future occasions the financial fairy tale which he has just told us. However much I might be tempted to follow him into his monetary wonderland, there are at this time matters of greater importance to which I desire to direct my attention. I welcome in this Parliament, however, the cheery optim ism of the honorable member, which not only expects that the Government will be able to finance its war efforts by producing money out of a hat, but also actually believes that the honorable member himself will continue his occupancy of the Corio seat indefinitely. While welcoming the honorable member to this House, we are compelled to express the opinion that his stay here will be relatively a short one.

Since the outbreak of war there has developed in this country a most alarming condition of affairs industrially. I refer to the growth of industrial unrest, which, at the present time, is hindering and retarding the nation’s war effort, and constitutes a source of civil strife which is rapidly assuming serious proportions. I make this general statement as one who has fought as hard as any one in this House for improved conditions. I believe that, at a time of war, when all sections of the community are called upon to make sacrifices to a lesser or greater degree, no section should exert pressure, supported by threats of strikes or violence, to secure conditions better than those which they enjoyed when the war broke out. We have the utmost sympathy with those who are seeking better conditions, and I hope that the time will shortly come when we shall be able to bring better conditions about, but I regard it as bordering on sedition at a time like this to seek improved conditions under threat of strike, or by actually striking. In this industrial disunity there lies a national weakness which threatens seriously to hamper the carrying out of our war programme.

The Leader of the Opposition (Mr. Curtin) made a particularly unhappy attempt, I thought, to justify the strike. He pointed out that there were resources available to the mine-owners to carry their case from court to court, and embarrass the miners by a succession of appeals. Of course, that is an attempt to pull wool over ‘our eyes. If one hundredth part of the money which the miners themselves are sacrificing in the course of this strike, or one thousandth part of that which the strike is costing the community, had been devoted to obtaining legal service for the miners in this case, it would have been possible to obtain the best in the world. The appeal from the finding of Judge DrakeBrockman to the Full Bench of the Arbitration Court was made on the ground that the judge in the court below did not have jurisdiction to deal with the matter of standard hours upon which he gave a decision. That point was upheld. It lias been the policy of the court that decisions on standard working hours must be reserved for the Full Bench. As a matter of fact, the award ultimately delivered represents in many respects an improvement of the working conditions of the miners on the award of the judge himself. Therefore, we must look beyond that for the real reason behind the strike. That reason is to be found, if we are not to seek a more sinister explanation, in the statement openly published by industrial leaders, namely, that they regard this as a test issue on the general question of a 40-hour week. They are prepared, while the country is at war, and when the Empire is righting for its very existence, to begin a strike which is affecting adversely all industrial activity. First of all, there is the disastrous effect on the employers and employees, together with their families, directly associated with the coal industry. Then there are the serious consequences to other industries which rely on the coal industry for fuel. There is the inconvenience suffered by members of the general public because of the shortage of coal; and finally, there is the worst consequence of all, the retarding of our own defence effort. In illustration of the ill effects of the strike, it is only necessary to point out how it is affecting the Glen Davis project for the production of oil from shale by the National Oil Proprictary Limited, an enterprise in which Commonwealth money is invested. “We are trying to establish alternative sources of fuel oil, so as to make ourselves less dependent on imported supplies. The honorable member for Corio mentioned that there were shale- deposits in various parts of Australia which ought to be exploited. Yet, at Glen Davis, where the Government has already invested over £600,000 in an enterprise for the production of oil from shale, the efforts of the company concerned are being hampered by the effects of the coal strike. The other day I asked the Minister for Supply what were the effects on the enterprise of the coal strike, and his reply was as follows.: -

I have been advised by National Oil Pty. Ltd., the Company concerned, that deliveries of steel products, notably those required foi the pipe line, have been suspended as a result of the strike, and the restriction of rail transport, duc to the strike, is also affecting operations. About 150,000 gallons of oil. have’ already been produced by the Company, and it was hoped that the cracking plant for the production of petrol would be in operation towards the end of next month, but, as a result of the strike, it is not possible to make any reliable forecast as to the date and volume of production. The Company anticipates, however, being in substantial production within a matter of weeks after the conclusion of the strike.

There has been much talk of the need for conserving dollar exchange, and of the possibility of having to ration petrol consumption, despite the fact that such action would injure many industries in Australia; yet at a time when we are making a serious attempt to produce petrol in Australia, the effort is being hampered, and temporarily sabotaged by the coal strike. The Leader of the Opposition made an appeal to the employers and employees to ge’t together and talk over their difficulties, suggesting in that way that it might be possible to find a satisfactory solution of our industrial problems. In making that proposal, he was either in earnest or he was talking with his tongue in his cheek. If ho was in earnest, I direct his attention to the fact that that policy was recently adopted by the Government in respeo’t of one important wartime need, namely, the need to secure skilled workers for many of our industries. The Government went about it in just the way the Leader of the Opposition recommended. It called into conference representatives of the Amalgamated Engineering Union - one of the most powerful unions in the Commonwealth - and representatives of the employers, and of the Commonwealth Advisory Panel. After a series of negotiations spread over some months, an agreement was reached which completely safeguarded the position of those men who might come into industry during the war, and also safeguarded the position of the established industrialists during the period qf the war, besides providing means for safeguarding their position after the war. The agreement was acceptedby the Government, the employers and representatives of the union. In spite of that, however, when the agreement came before the Australasian Council of Trade Unions, it was savagely attacked. A member of the Senate, who should have a stronger sense of responsibility to his country, was most outspoken in his condemnation of the agreement. How can any Government carry out its war programme if it does not receive the cooperation of those who, though they may be politically opposed to the Government, have nevertheless in time of war a national duty to support it in matters of basic policy? If the Leader of the Opposition wants us to adopt the method of industrial conciliation which he has suggested, he should throw his weight, and that of his party, behind any agreement once it is reached. Unfortunately, neither he nor his supporters have had courage enough to tell the strikers that their duty to the country requires them to obey the decision of the umpire once it has been given.

The powers of the Arbitration Court are, unfortunately, limited. They were more extensive once than they are now. As the result of action taken by the Labour Government, the court was shorn of any penal powers to enforce awards, the only power of this kind remaining to itbeing the power of de-registration. Although the Government may, in its wisdom, confer upon the court powers greater than those it now possesses, that is not a satisfactory solution of the difficulties. The only satisfactory method is for members of the Labour movement, who are really behind the efforts of the Empire to establish onceagain in the world the reign of liberty and peace, to show that they recognize their responsibilities by advising the men now on strike that their duty lies in working the mines, and keeping the wheels of industry turning during this critical time.

Sitting suspended from 12.45 to 2.15 p.m.

Mr HOLT:

– In Australia there is an overwhelming body of support for the determination of the Government to assist the Empire in its fight against Nazi principles, but that feeling is not given adequate expression, and in particular by those who claim to be the spokesmen of the Labour movement, and especially by the Federal Labour, party. I realize that much of the Labour party’s hesitancy is owing to internecine difficulties, but I do appeal to honorable gentlemen opposite to recognize that basically we have common aspirations. I appeal to honorable members of all parties to recognize that whatever their sectional or party differences may be in peace time, there are certain principles upon which we are united when our country is at war. At present that unity is not being expressed in terms of either government action or support for the Government. The time has come when honorable gentlemen opposite should recognize that they have a plain duty to the Commonwealth. It is one thing to make constructive criticism on points of detail of defence policy, and another to speak or act so that the Government’s policy, once decided upon and transmitted into terms of military action, should be hampered and hindered. There is strength in unity and weakness in our present disunity, and the time is long overdue when all sections of the political field should recognize their plain duty to establish unity in our midst. If that is to be done I suggest to honorable gentlemen opposite and to the country at large that those elements which are at present fomenting class discord and class hatred will have to be rigorously disciplined; for the activities of Communist agitators in our midst are largely responsible not only for the industrial strife which we are now experiencing, but also for much of the difficulty within the Labour movement itself.

Mr Gander:

– What has the honorable gentleman to worry about in that?

Mr HOLT:

– I shall explain why I worry. The Leader of the Opposition (Mr. Curtin) made a statement yesterday, at which none of us can cavil, in the course of which he mentioned that the Labour party was united in its determination to resist the activities of the Communists in Australia to-day, and that if the Government had not the power to deal satisfactorily with such a menace, he would support a move to confirm wider and stronger powers upon the Government With his general statement we can find no fault, but surely the honorable gentleman is not blind to the fact that his own movement is completely riddled with Communists at the present time. If he is so blind,- 1 propose to direct his attention and that, of the House to the recent history of the Communist party in Australia.

The Communist party has for many years enjoyed the privileges of a political party in Australia. I say “ enjoyed “ because it is the avowed objective of the Communist party to overthrow by revolutionary means the established form of government in Australia. It does not propose merely to apply- the socialist ideal of the appropriation of the means of production, distribution and exchange, but it also proposes to bring that about by revolutionary methods of bloodshed and oppression in this country. It has never sought to hide the methods by which it would work for that end. Governments of all political colours have shown a remarkable degree of tolerance in recent years in permitting an organization and party with that objective to function as freely as it has. I did not decry that. I supported it and subscribed to the attitude then taken up by governments; but the policy which we were prepared to apply in peace, and an organization which we were prepared to admit openly to advocate these methods in peace-time, is neither the policy nor an organization which we can apply or tolerate when this country is at war fighting for its very existence. In order to refresh the memories of honorable members I refer to the history of this movement. I have the pre-election issue of the Workers’ Voice for the 10th August, 1934. It states that it is the official organ of the No. 4 District Committee, Communist party of Australia. This particular number carries the headline “Raise higher the banner of Lenin and Stalin . . . for a Soviet Australia ! “ rt sets out the qualifications of certain of its candidates for the 1934 elections: Comrade Ralph Gibson, Communist candidate for Flinders; Comrade Dr. G. PO’Day, Communist candidate for the Senate; Comrade E. Thornton, Communist candidate for Yarra ; Comrade R.

M’Crae, Communist candidate for Bourke; Comrade J. Blake, Communist candidate for Maribyrnong. Honorable gentlemen opposite will be particularly interested in this statement -

Comrade Thornton will carry the banner of Communism against the Social-Fascist Leader Scullin in the Federal Elections.

The letterpress mentions that Comrade Thornton represented the Collingwood unemployed on the Central Strike Committee. The letterpress says that Comrade Blake “joined the party in 1923, took an active part in the mining strikes of 1927 and 1929, and was secretary of the committee for the relief of British miners on one of the New South Wales coal-fields in 1926 “. “ Comrade Blake “, it says, “ has had three years’ experience in the Soviet Union “. This issue of the Workers’ Voice tells something of the policy of the gentleman whom I have named.

Mr Forde:

– They were all opposing Labour candidates. ,

Mr HOLT:

– They were. I direct attention to this interesting- fact: Having failed so signally in 1934 to achieve any results by standing on their own account, they decided in the years intervening up to 1937 to establish a common front with the Labour movement, and in order to cite the success which attended those infiltration tactics, I point out that Comrade Thornton, who opposed the right honorable member for Yarra (Mr. Scullin), is to-day federal secretary of the Ironworkers Union. Those gentlemen are still the leaders of the Communist party. Dr. Gerry O’Day was one of the opponents of the honorable member for Corio (Mr. Dedman) at the recent by-election. I am reminded from behind me that the instructions from the Labour candidate at Corio to his followers were that they should give their second preference to the Communist candidate.

There is in the issue of the Workers’ Voice from which I have read, an appeal to the miners at Wonthaggi. Comrade Ralph Gibson refers to the Communist party’s fighting election call, and mentions “ the fine victory won by the Wonthaggi miners “. It has a familiar ring in the gamut of present events. He says -

The fine victory won by the Wonthaggi miners in the recent strike of five months’ duration is a complete vindication of the Communist party’s militant policy of struggle.

He goes on, in an appeal for a soviet Australia, to say -

At the same time, however, the only way out of the crisis for the toiling masses is the revolutionary way - the way of the revolutionary overthrow of capitalism and the establishment of soviet power. Hence the Communist party enters the federal elections under the slogan of social liberation for the toiling masses for soviet power.

He concludes by saying -

The revolutionary path to emancipation and freedom taken by the workers and peasants of the Soviet Union is the example for the oppressed and exploited masses of all countries. It is the path which the Communist party points out to the working class and farmers of Australia.

Forward to a soviet Australia!

Dr. Gerry O’Day, to whom the new member for Corio recommended that his followers should give their second preference, declares -

The Communist party offers the anti-war movement this view for consideration: “So plan that you will be able to convert imperialist war into civil war,and so make possible the building of a new society, from which the cause of war will be eradicated”.

We are engaged to-day in what those gentleman would describe as an imperialist war. In 1934, they said that such an occasion should be used as an opportunity to convert it into a civil war. There is no evidence or reason why we should believe that the leopards have changed their spots. They are the same figures putting out the same propaganda to-day, with this sole difference: they are doing it under the covert disguise of members of the Labour movement. The fact remains, however, that, that was their policy in 1934. Members on all sides who have studied the Communist movement in recent years are fully aware that that movement has looked’ to the day when an imperialist war would come in order to give its adherents the opportunity to overthrow capitalism throughout the world and establish a soviet regime in every country of the globe.

Mr Rosevear:

– How many votes did they get at Corio?

Mr HOLT:

– As the honorable member suggests, they failed notably, as they did on the occasion of the 1934 elections. The number of votes that the Communist candidates polled then indicated how small was thesupport in Australia for a policy of the kind put forward. I genuinely believe that the number of Communists in Australia to-day is small, but a militant minority can be particularly mischievous and more harmful than an enemy outside whom we know and against whom we can take appropriate measures. We have in this community to-day a “ FifthColumn “. The fact that its numbers are actually small does not affect the degree of damage that these people can do if they are permitted to run unchecked. They found in 1934 that they could not succeed on the tactics they then employed; so they decided on a policy of a “ common front “ with Labour. They decided, “ We shall endeavour to throw our lot in with the Labour movement in a common front against fascism and capitalism “. They indicated that their support was behind the Labour party. Leaflets were issued in Victoria, and I have no doubt in other States. The Victorian executive of the Communist party has its head-quarters openly situated in Melbourne. The organization is in the telephone book and one can ring up the Communist party at any time. That sort of thing can be tolerated in a time of peace, but when the country is at war no government with any sense of responsibility towards Australia or the Empire can countenance such activities. Well, the Victorian executive issued those leaflets and advised Communist supporters to support the Labour movement. Comrade Blake was advertised to speak on the advisability of electing a Labour government. He pointed out that unity is strength, and advised his -followers to vote for the Labour party. Those tactics met with singular success. I refer honorable members to an article by Comrade Sharkey on the federal elections in the Communist Review of 1937. The article is a long one and when I quote merely a part I shall do so with no desire for distortion by taking any passage from its context -

The Communist party fought the elections on a basically correct policy and tactic. Above all, it avoided the left-sectarian mistake of the New Zealand Communist party, which, disregarding the decisions of the Seventh World Congress of the Communist International, did not correctly apply united front tactics nor vigorously campaign for the return of a Labour government, failing badly to estimate the desires and mood of the masses. As a result, the New Zealand Communist party finds great difficulties in approaching the masses and breaking down its isolation.’ By its basically sound tactics, our party emerges from the elections with a considerable strengthening of its influence and its contacts with the Australian Labour party workers. In many electorates, despite the savage campaign of the rightwingers against the Communists, an actual united front for the elections was established. Communist branches and Labour leagues agreed upon the territory that would be covered by each in canvassing voters and delivering printed election material. Some of the Labour candidates welcomed Communists as workers on their committees and directors of the campaign. Together, Communists and Labour party workers manned the elections booths and so on. This means that, unlike the Now Zealand party, our party lias created favorable conditions for the development of the united front And for its own strengthening and easier approach to the workers.

This policy hae been so successful that it is causing the greatest disruption in the Labour movement itself. In the last few hours, five responsible members of this House decided to leave the Labour party with which they have been associated because they believe that its anti-communist activities are not sufficiently strong. The people of Australia generally were brought face to face with the seriousness of the position by the “ Hands off Russia “ resolution carried at the Easter Conference of the Labour party in New South “Wales by 191 votes to 88. That conference was supposed to represent 200,000 unionists. The resolution brought to tho mind of every one who read it the extent of this infiltration. If honorable members opposite still deny that this policy has had any success in the movement, I refer them to a statement issued by Mr. W. F. Sheehan, who claimed to be the chairman of the Labour Centre party in New South Wales. He opened his statement with these -remarks -

The last Easter Conference of the Australian Labour party at which no check of credentials of delegates was made wis a triumph of organization by the Communist party. It represents a complete defeat in tactics so far as tho Australian Labour party is concerned.

Moreover, we find Mr. H. B. Martin, president .of the Australian Railways Union in Sydney, saying, “ This conference must declare its support for the Soviet Union”. Faced with these facts, and also with the letters which appear daily in the press from unionists pointing . out the seriousness of the infiltration into their own ranks, for the Leader of the Opposition to stand in this House and say that his party will support stronger measures against Communists, and that the Labour movement contains no men of this kind is - well, “hypocrisy” is a strong word, and I do not wish to use it. Either the honorable gentleman is blind to the situation in his own movement, or he is deliberately attempting to cover up the true position from the eyes pf the outside world. Whatever powers may be given by this Parliament to the Executive, they cannot be used effectively unless the Labour movement itself is determined to purge its ranks of this anti-Australian and anti-Empire element which is “white-anting” our war effort. Every day leaflets similar to that which I hold in my hand, and which purports to show how the Soviet “ defends “ the Finnish people, are being dropped into letter boxes throughout the country. This pamphlet is endorsed “ Issued by the Central Committee, Communist party of Australia “, and is printed by the Forward Pres3 Proprietary Limited, 175-7 Campbell-street, .Sydney. It also bears the union label of the printing trades union.

Mi-. Curtin. - That would be put on it by the employer, not by the employees.

Mr HOLT:

– I leave it to the honorable member to explain how the union label got on the pamphlet.

Mr CURTIN:

– The honorable gentleman should not make improper innuendoes.

Mr HOLT:

– I make the only innuendo which would be gathered by any person who received the pamphlet. [Leave to continue .given.’] If the printing trades union knows that this “ white-anting “ is going on, and countenances it, we must assume that in printing the pamphlet it is supporting the action of these people.

Mr Curtin:

– That is silly. The printing trades union label is made available to printing trade employers whose conditions in respect of employment conform to those set out by that union. The employer may, or may not, use the label as he thinks proper; but its presence on the pamphlet has nothing whatsoever to do with the printing trades union.

Mr HOLT:

– I am interested in the explanation given by the Leader of the Opposition, but I say to him that if that be the position, it is apparent that the Communist party, in using that label on this pamphlet and on others, is endeavouring to create the impression that it has the support of the printing trades union. If that be its objective, surely the union, if it does not support such tactics, should itself take action to prevent a. continuance of that policy.

The Government must take strong action to stamp out activities of this character and I hope that, in doing so, it will have the support of. the whole House, as it will undoubtedly have the support of the majority of the people. The Communist party should be dissolved and its rooms closed. Any publications which openly claim to be official organs of the Communist party should be prohibited. I say that as one who, in normal times, is prepared to go a long way to ensure the right to the fullest and freest expression of opinion in the community. But to-day we are fighting for our very existence. Many of us have been prepared to submit to some curtailment of our liberty of action in various fields of endeavour. The people will demand that this “hidden hand” in our midst, which is more sinister than any overt enemy can possibly be, shall be crushed. The great democracy of France, where individual liberties have just as strongly been preserved as in this country, has thought it necessary, in the national interest, to curb the activities of underhand societies. In New Zealand similar action has been taken. The time is overdue for the Commonwealth Government to prohibit the activities of a party which has as its one’ objective at the present time the “white-anting” of our war efforts, the weakening of our national unity, and the fomenting of class discord. I hope that now that tho people of this country have been brought face to face with the danger from within, action to crush these subversive agencies will not be delayed.

Sir EARLE PAGE:
Cowper

.- Without reflecting on the other excellent speeches that have been made to the motion for the adoption of the AddressinReply, I wish to compliment the honorable member for Richmond (Mr. Anthony) on his extraordinarily fine speech which was an inspiration to us all. I take this “opportunity to compliment also the new member for Corio (Mr. Dedman) on his maiden speech. Although I find myself in some disagreement with the matter of his speech, his lucid way of presenting his case will probably gain him more support than the matter deserves.

Coming now to the Governor-General’s Speech, I desire to say that I approve of the principles that are stated in it. My only criticism of it is that military preparations are not proceeding at the rate which the situation demands. It seems to me that the Government’s programme should be accelerated. I regret also that the Speech lays so little emphasis on the necessity for co-operation with State Governments in regard to the military and civil efforts required to secure the maximum effort by Australia in the prosecution of the war. For that reason, I welcome the tone of the speech of the Leader of the Opposition (Mr. Curtin) who made it clear that, in respect of war effort, he was prepared to place the resources of his party behind the Government. I was pleased to observe also that, as the war comes closer and war conditions become more ominous from an Australian point of view, the outlook of all parties in this chamber is tending towards uniformity. Although I appreciate the tone of the speech delivered by the Leader of the Opposition, I regret that he did not go so far as I would like in his attitude towards foreign aggression, and the giving of assistance to the British forces outside Australia. One reason for my regret is that’, whatever else may happen,- I am anxious to keep actual hostilities away from Australia. I want whatever fighting our men may have to do, to- be- done outside Australia. I agree with the Leader of the Opposition that care must be taken to strengthen Australia’s own defences so that we may be in a position to resist attack. I cannot but regret that the decision of a previous Government on the recommendation of Lieutenant-General Squires to establish a permanent mobile army was not carried into effect. In the situation that is developing, its value would have been enormous. I- suggest to the Minister that this matter might be well reconsidered by the Government, because, after all, there is a difference between the militia reserve and the expeditionary forces which are in course of training and a permanent properly equipped and fully trained and disciplined force which can be thrown into any danger spot at a moment’s notice. I also regret that my attempts to secure some battleships for the Australian fleet were not successful. We should feel much happier if there were more such vessels in the Pacific at the present time. At present there is only one test of Australian statesmanship, and it should be applied to every member of this Parliament whether he be a leader or otherwise. The test is the strength of his endeavour to secure the greatest possible degree of unanimity in our war outlook and effort. By some means or other we must find what I shall call the highest common factor of agreement in regard to what we are prepared to do to savo Australia, for there appears to be very little difference of opinion concerning what we are actually fighting for. This has been described in various ways, but it appears to me to have been as well stated as I have ever seen it stated in a letter written by Miss Dorothy Thompson in the New York Tribune, which is published in this week’s Industrial Australian and Mining Standard. The letter reads as follows : -

This war is a civil war to force Germany back into western civilization and then reorganize and strengthen that civilization by cio-opera.tive effort, letting bygones be bygones.

The peace terms cannot bc written, because the peace terms cannot be dictated. They must be created, together, as a peace for a new and united Europe. In order to make that peace one must have Germany back in the body of western civilization.

This war is a fight for the living body of Germany.

What is western civilization? It is not democracy, not parliamentary government, and certainly not capitalism. All of these are merely manifestations of something else - temporary forms to express a more permanent content.

Western civilization is made up of three things; the Christian ethic; the scientific spirit; and the rule of law.

The essence of the Christian ethic is that the weak have rights as well as the strong and that the strong must set limitations upon their own. power.

The essence of the scientific spirit is that the search for truth transcends the State and may not be limited or suppressed by the State. It presumes the separation of State and culture, i.e., the separation of culture from force.

The essence of the rule of law is that contract is superior to arbitrary force; it presumes a. continuity of relationships, constantly being modified but of universal application at each moment, and from whose sovereignty 710 one is exempt, not the King, not the President, not the powerful, not the weak.

That is surely an ideal for which any one could work; but quite apart from that aspect of it, we must wake up to the fact that we are to-day fighting for much more than an ideal. We are, in fact, fighting for our very existence. If we are to hold what we have, and to retain possession of the great heritage handed down to us by our fathers, we must put our maximum effort into the war. Surely, we have a sufficient inducement to do this, seeing that we are living under a system which has progressively improved the conditions of the workmen and the lower-paid people of this community. I was much struck yesterday by the address delivered to us by Mr. David Grenfell, the member of the British House of Commons who was visiting Canberra. In his very eloquent and inspiring utterance, he told us that there had been a revolution of living conditions in England in the last twenty years. I know, myself, that I cannot now find in Sydney the slums that were there when I did my midwifery course 40 years ago. There has been a steady improvement despite the fact that it has not been as great as many of us desired to see. In these circumstances we must all surely agree that democratic government is something well worthy of our fighting.

Stronger forces are opposing us in this war, I believe, than those which opposed us during the last war. Mr. Grenfell told us yesterday that there were roughly 300,000,000 people in Germany and Russia. I doubt whether more than 150,000,000 people were opposed to us in the last war. It is obvious, in these circumstances, that the Empire and its Allies must make gigantic efforts if they are to win through. One way in which we can ensure the making of this gigantic effort is to be desperately frank with our people. If we do not mislead the people, but tell them candidly what they ought to know, I am sure thatwe shall be able to keep their support and also to preserve their trust and confidence in their leaders. One way in which we can do this is to make available to them the fullest possible information of the war effort of the peoples of the other parts of the Empire. I realize that short-wave broadcasts are made from time to time, but these are not heard by the very large proportion of the people of the dominions to which they are made. What we need is the steady and continuous dissemination of information about what is actually happening. The ruthless crushing by Germany of the smaller nations, and its ruthless suppression of freedom within the borders of Germany itself, can leave no doubt in our minds that we are fighting for the highest principles.

Our strategy, if we are to save human life to the greatest possible extent, and to prevent undue destruction, must be to press home the blockade to the maximum degree. The Empire and its allies are manifestly superior in war resources. On this occasion,France, so far from being the shambles which it was in the last war, is a huge garrison protected by the Maginot line. Great Britain has shown itself to hold the supremacy of the seven seas. The very fact that we have been able to send thousands upon thousands of tons of Australian produce to British and allied consumers with methodical regularity must surely have caused a thrill of pride to every British citizen. Germany realizes the fatal effect that the blockade must ultimately have upon its strength if it is continued. It is for that reason that the Germans are doing their very utmost to break the blockade. It is also for that reason, I believe, that Germany has made its desperate drive in Scandinavia and that we must expect it to make similar desperate drives into Belgium and Holland. Because of the unquestioned supremacy of the British sea-power it is inevitable that Germany will be forced to make a drive in the south-east of Europe as the only possible way to relieve the blockade. It is imperative, in my opinion, that the allied forces should act ahead of the German forces in the Balkans. When we look back over the happenings of the last few months, we must realize that we were really six months too late to help Czechoslovakia, and at least six weeks too late to help Poland. Unfortunately, we were a few hours too late to give the maximum aid to Norway. We must, therefore, be first to the Balkans, for there cannot be any question about the advantage it is to be first in the field. It is far easier to hold a position than to dislodge an enemy that has got into position before us.

For these reasons I have previously expressed the belief that we should have an invincible army in the Middle East. This, I believe, is absolutely indispensable to the satisfactory continuance of the blockade, and to the winning of the war in a reasonable time.For these reasons also, I have advocated that the Australian troops should be concentrated in the East. I have taken this stand, not merely because of our vulnerability there, but also because, if trouble should occur this side of Suez, our troops could be readily brought into action. I find that expert military opinion also supports this view. It is quite obvious that if we can maintain the blockade we must ultimately win the war.

The resources of the British Empire have grown enormously since the last war. Take nickel for example. Our production of this metal within the Empire in 1913 was 22,500 tons. Last year it was 102,000 tons. In 1913 we produced 94,000 tons of copper and last year we produced 600,000 tons of it. Our production of bauxite, which is required for the manufacture of aluminium products, was only 25,000 tons in 1913, whereas last year it was 400,000 tons. We produced 46,000 tons of rubber within the Empire in 1913 and last year we produced 600,000 tons. Oil, of course, is indispensable to modern mechanized warfare and, in fact, has become almost indispensable to all peacetime activities. We are producing about 6,000,000 tons of oil within the Empire and we have under Empire control an annual production of 25,000,000 tons. Germany’s home production of oil in peacetime was only 2,500,000 tons per annum although its peacetime consumption was 7,00,000 tons. Its wartime consumption must be at least 20,000,000 tons a year. Germany must have oil or perish and it can only be had through the Black Sea and from

Roumania. Hitler must pierce the blockade or he will not be able to carry on his war activities.

The same situation exists in regard to iron ore which is indispensable in the manufacture of armaments and munitions. At the beginning of the war Germany was producing only 34 per cent, of its peacetime requirements. Prior to the last war Germany had the possession of the rich iron ore deposits of Lorraine from which 75 per cent, of its requirements were drawn. To-day, in spite of the erection of Hermann Goering’s new works in the Salzgalter Valley, the German position is unsatisfactory; for the ore that is being used has only a low ferrous content of about 15 per cent. Germany therefore needs rich foreign ore3 to make up the deficiency.

All that I have said shows how essential it is that the blockade should be continued at the maximum of efficiency. Germany must have oil and therefore it seems to me that we must maintain a blockade in the eastern Mediterranean. Otherwise Germany will get oil.

Victory will ultimately depend upon three things. The first of these is the fighting powers of our armies, navies, and air forces. The second is our ability to keep up our supply of food and key materials. The third is the strength of our home front to keep our factories working at full blast and to keep our producers hard at work on their farms, Success in the war will rest with the people who are able to maintain the strain of war for the longest period.

Australia’s function in this war seems to me to be threefold. We must first provide men for the defence of this country. We must also provide men to take an active part in the Empire’s war effort, always having regard to the fact that the first and paramount duty of the Executive in this country is to defend Australia. Secondly, Australia must be the arsenal for the Pacific and the East. That is of the utmost importance. In the third - place, we must provide Great Britain and our allies with food and raw materials. To discharge these three activities satisfactorily, we must overcome the enemies within Australia as well as those outside. To this end we must unify our war effort. That is one reason why, for a long time, I have advocated, in season and out of season, that we should have a national government in this country. This seems to me it is inevitable. In wartime, Parliament meets only seldom, and the Executive is the real parliament of the country. It is consequently necessary that the views of all sections of the community should be fully represented on the Executive which has to make quick and important decisions. I am hopeful that before very long there will be such unity in Australia as will make a national government possible. Every one knows that it was not until some time after the last war broke out that we were able to overcome the hesitation that existed about breaking down party barriers. In fact, it was not until 1917 that the Conservative, Liberal and Labour parties of Great Britain came together to form a national administration to carry on the war. It was after that time that the highly satisfactory standard was reached in the production of munitions. This was due, to a large degree, to the influence of the extraordinarily able men that the Labour party of Great Britain was able to make available to join the national government.

Two factors must be considered in the development of the war effort of this country. The first is our shortage of man-power and the second our shortage of money. I have made certain suggestions as to how our man-power may best be used. I have suggested that the age limit for enlistment and service should be lifted somewhat so that the men who fought in the last war could make their experience available. I refer to both officers and the men who served in the ranks. Many of them are anxious to join the Forces and their experience would be invaluable at the present time; but because of the age limit that has been fixed they have been debarred from serving. I hope, therefore, that the age limit will be lifted.

I have also indicated how the wastage of our man-power could be eliminated by the giving of a great deal more attention to the food supply of our troops and the way in which food is preserved, and also to the care of the teeth of the troops, and to the sanitation of the camps. I am glad to note that something is being done to improve the position. It cannot be doubted that any army, the medical, sanitary and dental services of which are inefficient, is headed for disaster, whether it meets a foe or not. During the last war, the loss of man-power by disease was quite as great as was caused by war wounds, and the percentage of sickness was very much higher than normally would have been the case. Many men who have been trained as lighthorse-men and who otherwise might not be prepared to enlist would, I believe, be quite willing to join a cavalry regiment. If our troops are to go to the Middle East, these men would be invaluable.

In order to ensure the maximum use of our man-power, the pay of the troops should approximate to the rewards offered in civil life. It seems to me that that is the only way in which we can be sure that during the whole of this war, we shall have a section of the Australian people represented in the Australian Imperial Force, without a very great deal of hardship being caused in many quarters. Surely, in a time of war, when men are offering their bodies as a living rampart in order to save us from destruction, there should be equality of sacrifice. In order to lend encouragement in that particular direction, decent payment should be provided for the children and other dependants of those who go abroad.

An immediate medical examination when men offer to enlist would also be of material assistance. At the present time, men who offer for enlistment are told to return after the lapse of two or three months, and when the examination is ultimately made, many of them are found to be medically unfit after they have dislocated the whole of their business affairs. A medical examination at the outset would be far preferable. All of these things would tend to conserve man-power on the home front, and be the means of checking a good deal of the dissatisfaction that now exists. One must always remember that frequently minor lapses of administration cause major reflex disturbances in the psychology of the people as a whole.

But what I regard as of more importance is the checking of those elements which are paralysing industry, especially key industries. We have noted that in Norway and the other States that have been invaded by Germany, the Nazis and Communists have adopted the practice of having in those countries in advance of the actual invasion, agents who see that their intentions are not hampered when they feel that the time is opportune for them to move. This treacherous work is now being done in Australia, whether wittingly or unwittingly I shall not say, by Communists in every major industry. These men openly state, as was stated in a resolution passed by the Australian Bailways Union, that in the event of the Australian Government interfering with their activities, they will do everything in their power to bring to a standstill the whole of our railway systems, upon which depend our entire economic organization as well as our military operations.

Mr Lazzarini:

– The railway men themselves have not said that.

Mr Blackburn:

– Quote the actual resolution.

Sir EARLE PAGE:

– It reads-

If the Menzies Government interferes with the leadership of the Labour party, the Communist party, or the trade union movement, everything possible will be done to bring the railway services to a standstill.

Mr Lazzarini:

– That was carried by half a dozen men.

Sir EARLE PAGE:

– As an Australian, I am not concerned with communism as a doctrine. On all occasions, I have stood for freedom of speech in this country. I have had to lead a party which, as honorable members will admit, has not been generously served by the press in making its views known. In the spread of political doctrines, I am entirely in favour of freedom of speech. I am concerned not with communism as an academic doctrine, but only with the treasonable activities of Communists inside Australia. On the 4th March last the Attorney-General (Mr. Hughes) declared that members of the Communist party were taking instructions from Stalin, and were doing all that they could to hamper Australia’s war effort.

Mr Lazzarini:

– No action has been taken against them.

Sir EARLE PAGE:

– I have done my best to secure action. The right honorable gentleman went on to say -

We have in our midst the servile and unscrupulous agent of the ally of Germany. That position has not altered.

I am not satisfied with the suggestions made in the Governor-General’s Speech regarding Communist activities. As the honorable member for Werriwa (Mr. Lazzarini) has interjected, it is not the trade union movement as a whole that is responsible.

Mr Lazzarini:

– Nor any considerable section of it.

Sir EARLE PAGE:

– The responsibility rests with different men in certain key positions. How they have obtained those positions is a matter for the trade union movement to disclose. To indicate how widespread are Communist ramifications, one need only look at the history of some of the men who hold positions in the trade union movement. I find that the secretary of the Trades and Labour Council, Mr. R. King, was formerly the official trade union organizer of the Communist party; Mr. H. L. Denford, of the metal workers, was the general secretary of the Communist party ; Mr. Healey, the general secretary of the Waterside Workers Union, has been on the Sydney Domain Communist platform; Mr. G. Thornton, of the Federated Ironworkers, has also been on that platform; Mr. Tom Wright, a member of the. Australasian Council of Trade Unions, is on the central executive of the Communist party; Mr. Orr, the general secretary .of the Coal-miners Federation, has been a Moscow delegate and was founder of the Minority movement; and Mr. Tom Moroney, the federal president of the Australian Railways Union, also has been a Moscow delegate. The Communist party has captured control of the unions in various key industries, and it seems strange to me that the intense industrial unrest of the last five or six months was not precipitated in full blast until Russia had decided to ally itself with Germany in the occupation of Poland and, later, of Finland. I believe that the membership of the unions as a whole is anti- Communist. That has been demonstrated time and again at federal elections, at which Communist candidates have invariably lost their deposits, as well as on the coalfields of New South Wales. This proves that the rank and file of the unionists of this country are not Communists. But, unfortunately, certain Communists have been able to secure strategic positions, and because they hold these executive posts, they are able, at their will, to upset the transport, mining, steel and engineering industries. I am glad to note that the Government intends to take action against them. I do not consider that this is a time for kid glove methods, in dealing with treasonable activities. The Communist party and its auxiliary bodies should be proscribed as illegal organizations. It may be suggested that this might interfere with our relations with Russia. My retort to such a suggestion would be, that France has been compelled to take action against certain newspapers in that country, to deal even with deputies in its own legislature, and to disband illegal associations, despite the possibility of such action affecting its relations with what is, after all, a doubtful neutral power at the present time. All Communist literature should be banned, and, what is most important, action should be taken to prevent Communists from occupying paid positions in the trade union movement of Australia. The accomplishment of that aim would not, I believe, interfere with the rights of the rank and file members. I do not consider that Communists should draw pay from Australian workers while doing Stalin’s work.

Mr Makin:

– I believe that they also receive pay from the other side.

Sir EARLE PAGE:

– I have a boy on active service at the present time, and am informed by the army authorities that he is probably in Norway. I am concerned with winning the war. The winning of elections is secondary. I have said enough to prove that I do not care who wins an election, so long as Australia and the Empire win the war, and the world is made safe for democracy. I am endeavouring to indicate the most practical way in which Australia’s war effort may be enlarged. At a time when we should be exporting iron and steel, and sending armaments overseas, to help those who are fighting, is it right that our coal-mining and other industries should be held up? Delaying the assembly of aeroplanes, with the result that 10, 15 or 20 fewer than should be sent are sent, might be responsible for our defeat, and the loss of thousands of our men. I am fighting, not theoretical communism, but those who are attempting to subvert the Constitution of this nation. There are some persons who say that action along the lines I advocate would tend to drive these men underground. How many of them are underground at the present time?

I pass now to the shortage of money in this country. It is imperative that the Federal Government should make up its mind as to the order of priority in which money should bc spent on public undertakings and utilities; it should lay down general rules as to what money should be spent on, and where it should bc spent. I regret the failure to implement the National Council which was brought into being eighteen months ago. It would have provided us with the best brains to be found in the ranks of industrialists and economists in the Commonwealth. Having failed in that direction, the Australian Government cannot now evade the responsibility of itself determining that priority; it must make up its’ mind as to the things on which the funds at our disposal should first be spent. I venture to affirm that the greatest labour saver is electricity, which enables us to do very much more with very much less labour. The Commonwealth Government should state quite definitely to local-governing bodies that electrical developments and extensions should come first. I shall give two illustrations in support of my contention. Take the position of Sydney. That city is supplied with electricity by a number of activities, including a Balmain company - a private company - and the Sydney County Council, at Bunnerong. Three years ago, plans were prepared to ensure that if at any time one plant should be thrown out of commission by the explosion of a bomb or through any other cause, its load could be transferred to the others. This work has not been carried out, because money for it has not been made available, yet thousands of pounds are being spent on other activities that are not half so important. Take the position in my own district. During the last war, it was found that butter production could be maintained only by the employment of the old people, after their eligible sons had gone overseas. Many of these men had retired years previously.

We have since doubled our production, whilst Denmark is now off the market by reason of its occupation by Germany. The Clarence County Council has been attempting to obtain a mere £350,000 to enable production to be maintained and developed. Surely it should be given a hearing, and not be held up for months! [Leave to continue given.] The time has come when the Commonwealth Government should take over the railway systems of Australia. The need for this has been made evident by the stupid muddle which arose over the issue of travelling passes to soldiers going on leave to the various States. In time of war, transport is more important than anything else, yet the railway systems are being starved and robbed of all power to expand, because it is necessary for the State governments to come to the Commonwealth Government for financial accommodation. Transport is so linked up with defence that for this, if for no other reason, the railways should be under Commonwealth control. If it should not prove to be successful, we can always go back to the system of State control, but we should at least give federal control a trial.

I believe that we should encourage outside capital to come to Australia for investment, rather than discourage it, particularly for the establishment of new industries which would be of value in wartime and afterwards. I was disappointed to learn that, in connexion with the proposal to manufacture motor cars in Australia, it was provided that 75 per cent, of the capital should be raised in Australia. In my opinion, not more than 50 per cent, of Australian capital should have been insisted upon. We should encourage the investment of outside capital in this country, remembering that, when industries are situated here, we have it in our power to control working conditions. At this time, when it is necessary to conserve dollar exchange, I think we should encourage the importation of overseas capital.

I have not the slightest doubt that the heart of the people of Australia is absolutely sound during this time of emergency. Gradually they are coming to see the position as it is, and I am convinced that their response to inspired leadership would be immediate and magnificent. That leadership must be able to look beyond party advantages and personal gain; it must be able to understand the problems and difficulties of every section of the community, and must be able to stir up a white flame of patriotism among the people. It must be prepared to acknowledge mistakes, and correct them promptly. I stress this psychological fact : Minor lapses in policy and administration frequently so distort individual points of view that, if they are not corrected, the persona concerned may become influences for disintegration rather than for unity. I believe that courage and frankness and absolute honesty will pull us through at this time.

Debate (on motion by Mr. Ward) adjourned.

page 230

COMMONWEALTH ELECTORAL BILL 1939

Message received from - the Senate requesting the House of Representatives to resume the consideration of this bill, which was transmitted toit for its concurrence during the last session of the Parliament, the proceedings on such bill having been interrupted by the prorogation of the Parliament.

page 230

ADJOURNMENT

Netherlands East Indies - Price of

Superphosphates - Case of Mr.’ Tilby - Fair Rents Regulations - Press Budget Forecasts - Defence Works for Relief of Unemployment

Motion (by Mr. Archie Cameron) proposed -

That the House do now adjourn.

Mr CURTIN:
Leader of the Opposition · Fremantle

– I ask the Treasurer (Mr. Spender) to ascertain as’ soon as possible what authority the Australian Broadcasting Commission had for the news transmitted to-day, in which it informed the Australian public as follows : -

Following a statement made yesterday by the American Secretary for State, Mr. CordellHull, respecting the future status of the Dutch East Indies, heavy selling on the New York Exchange resulted in a drop in Australian Bonds, among other stocks, of ten points and rubber thirteen points.

Will the Treasurer ascertain whether there has been any retrogression on the New York market of Australian stocks? If there has, I ask the Government to take serious cognizance of the remarks I made on the subject earlier in the day.

I desire to raise another matter affecting the Ministry for Information.

Mr Spender:

– I shall obtain information regarding the price of Australian stocks in the United States of America.

Mr GREGORY:
Swan

.- Some time ago, the Government appointed Professor Copland as Prices Commissioner: to prevent profiteering, and to ensure that prices are kept at a reasonable level. Recently, Professor Copland agreed that the price of superphosphates should be increased by 10s. a ton. I do not suggest that the increase was not justified ; I do not know enough about the matter to express an opinion one way or the other. I do say, however, that superphosphates are of such importance to the development of Australia that a substantial price increase should not be permitted until a full inquiry has been made by such a body as the Tariff Board, which is authorized to take evidence in public and on oath. Professor Copland has no such authority.

Mr MAKIN:
Hindmarsh

.- During last session, at the instance of the Limbless Soldiers Association, I brought before the House particulars regarding the case of a returned soldier named Tilby, and asked that a special rate of pension be granted in his case in view of the unusual circumstances. This man was shot through the arm at the landing at Gallipoli. Gangrene set in, and the

Mr BLACKBURN:
Bourke

.- I raise a matter which comes within the purview of the Department of Trade and Customs. I understand that department is responsible for the regulations under the National Security Act which relate to fair rents. The Fair Rents Regulations have, in Victoria, altogether superseded the statute passed by the Victorian Parliament. I have made representations to the Government several times during the recess urging that the Fair Rents Regulations be altered so that they can be used by tenants without the tenants being compelled to incur the expenses of professional assistance. At the present time it is encumbent upon the person who seeks to have his rent reduced to know and name, not the person who collects the rent, but the owner of the property at which he lives. Further, he is required to ascertain whether the property is subject to a mortgage and, if it is, he is required to serve a copy of the application for reduced rent upon the mortgagee. That places an unfair burden especially upon tenants of that class which needs the relief of the regulations. In order to ascertain the name of the owner, the tenant must generally make a search, and in order to ascertain whether there is a mortgage, a search must certainly be made. The tenant cannot do that without employing legal assistance. What I suggest is that the am)11, cation should be sufficient if, instead of giving the actual name of the owner, the tenant merely describes him as the owner -of the property, No. 88 Graham-street, Port Melbourne, or what. ever it may be and serves the application upon the agent or person to whom he pays the rent. It would then be the duty of the owner upon receiving the application to serve it upon any mortgagee. That duty should not rest upon the tenant. If that were done this procedure could be used by a large number of people who are excluded from the benefit of the regulations to-day.

Mr Spender:

– I shall consider that.

Mr THOMPSON:
New England

– Ever since Parliament rose in December and on an intensified scale lately there has been a mystifying campaign in the press of Australia regarding the war time supplementary budget which the Treasurer (Mr. Spender) is soon to bring before this House. Whether the information that has been given to the press almost daily has been given with the connivance of the Treasurer or hia officials or whether it is merely idle and mischievous speculation of the press is something that I should like the Treasurer to clear up. Because I can assure him that the erratic character of the statements and forecasts that have been appearing so frequently lately are having a very serious detrimental effect upon business and industry throughout the country. It is not necessary for me to give instances.

Mr Spender:

– No, I have seen them.

Mr THOMPSON:

– Every day I see in the newspapers these forecasts and there is a strange similarity of method. I saw a huge headline, “£120,000,000”, and then I read that that was the latest estimate of the supplementary budget for war purposes to be brought down. A week or two ago the estimate was £100,000,000. It jumped by £20,000,000 in a fortnight. Every day we see forecasts of some new form of taxation. The general impression is that the Treasurer spends most of his time, like a medieval torturer, trying to think out methods by which he can extract income from the worried taxpayers of Australia. The taxpayers realize that they are in for it so far as taxation and loans are concerned, but I submit that it is very bad psychology to give any encouragement to this campaign of apprehensiveness.

Mr Spender:

– The Government gives no encouragement to it at all.

Mr THOMPSON:

– The other day I saw that there was to be a wartime profits tax of 60 per cent, and then there was a suggestion that the income tax was to be doubled. Because of this campaign men in business and industry are in a state of the jitters. They realize that they have to face something, but I cannot understand the reason for this terrific barrage of propaganda.

Mr Spender:

– The Government has nothing whatever to do with that. Each paper seems to have an idea that it can anticipate what the budget is going to be, whereas the budget is known to nobody but the Cabinet.

Mr THOMPSON:

– The point thatI make is that most people realize that they will have to pay more, but resent a campaign suggesting dreadful forms of taxation which may or may not be necessary. The Treasurer has not said a word about it.

Mr Spender:

– Oh, yes, I have. I have said that any statements about the budget are no more than idle speculation.

Mr THOMPSON:

– I know that business people have declined to employ hands, although they need them, because they are being impressed by this campaign and because they do not know what is in front of them. The Treasurer would create a healthier tone if he indicated that these newspaper forecasts are no more than mischievous speculations and indicated that the supplementary budget will contain provisions the character of which has not been disclosed to any section of the press or to the public of Australia.

Mr JENNINGS:
Watson

.- The protest made by the Leader of the Opposition (Mr. Curtin) in regard to the

Mr ROSEVEAR:
Dalley

.- I am pleased that the Treasurer (Mr. Spender) is here, because he gave a flat denial to the allegations contained in a question I asked yesterday about the way in which the grant of £850,000 given by the Commonwealth to the State of New South Wales was being used. It might be remembered that when the Treasurer first announced the grant we expressed fear on this side of the House - the member for Perth (Mr. Nairn) was similarly concerned - that the money devoted by the Commonwealth to works on federal account and given to the States would be used by the States to relieve their financial obligation to provide work for the unemployed. We, in New South Wales, for a number of years have had experience of the Commonwealth making grants for the purpose of providing additional work for the unemployed, only to find that in the spending of the money the State Government had taken men off work usually financed out of State revenue and placed them on work to be done under the Commonwealth grant. Whilst the intention of the Commonwealth was to provide additional work for the unemployed, the State Government used the money granted by the Commonwealth for the purpose of relieving its own budgetary position.For that reason we made representations to the Treasurer on the last occasion when money was so voted and pointed out that in New South Wales, and possibly in other States, there were thousands of men who, because of the earnings of their

  1. Is it a fact that an undertaking was given by the New South Wales Government to the Federal Acting Treasurer (Mr. Spender) that men debarred from relief work by the permissible income regulations would receive equal consideration for employment on Federal defence works undertaken by this State and financed by the Commonwealth Government?
  2. Will he inform the House of the number of such men who have been called up?

I asked the Minister to take note of this particular point, because he has denied my allegation.

  1. Will he further inform the House for what reason have men been transferred from the University, Burrows-road Cook’s River drainage, Marrickville drainage, and Sandringham jobs to these Federal works, whilst thousands of men registered for employment have been overlooked ?

This is the reply of the Premier of New South Wales, which is in complete contradiction of the statement of the Commonwealth Treasurer -

The Commonwealth Government was informed that in making engagements of labour for full-time defence works, the unemployed registered at the State Labour Exchanges nearest to. the work are called up in order of registration as unemployed persons irrespective of whether they are receiving governmental assistance, by way of relief work or food relief, but subject to the State requirement of giving preference to returned soldiers.

The Treasurer told this House that there was an arrangement between the Commonwealth Government and the Government of New South Wales under which men outside the ordinary ambit of relief work in New South Wale3 would be given an opportunity to get this work. Here we have the statement of the Premier of New South Wales to the effect that the announcement made last session by the Federal Treasurer was either incorrect or was misinterpreted by the New South Wales Government.

Mr Spender:

– What is the honorable member claiming? Does he suggest that my statement to the House was. incorrect?

Mr ROSEVEAR:

– The implication is obvious. The honorable gentleman told this House that, as the result of further negotiation with the Government of New South Wales, certain classes of men who were denied relief work in New South Wales because of the permissible income regulations would he given an equal opportunity to get that work.

Mr Spender:

– That is unquestionably correct.

Mr ROSEVEAR:

– Yesterday, the honorable gentleman admitted that the New South Wales Government was taking men off their own relief work jobs financed by the State and putting them on jobs financed by the Commonwealth.

Mr Spender:

– Where is that admitted ?

Mr ROSEVEAR:

– It is admitted in the statement by the Premier of New South Wales that the only undertaking given was that, subject to the returned soldiers’ preference in New South Wales, he would take men off the State’s relief works financed by the State and place them on jobs financed by the Commonwealth.

Mr Spender:

– I suggest that the honorable member reads the statement again.

Mr ROSEVEAR:

– .The Premier of New South Wales says further in his reply-

The number of men engaged on behalf of the Commonwealth Government under this arrangement was approximately 4,000.

The arrangement was, first, that preference to returned soldiers would be observed, and, secondly, that the State Government would take men off work financed by the State and put them on Commonwealth work. That was the only obligation undertaken.

Mr Spender:

– Where does the Premier say that?

Mr ROSEVEAR:

– He says it in this document. None are so blind as those who will not see. The Treasurer has no inclination to see what I am endeavouring to show him. He made an irrespon sible statement to the House, which could not be substantiated. I challenge the honorable gentleman to disprove what I am saying. I can give the names of men taken off State relief work and placed on Commonwealth relief work.

Mr Spender:

– I have been asking for that for quite a long time. Let me have the details.

Mr ROSEVEAR:

– The details may be found in the answers to questions in the New South Wales State Parliament on the 2nd April, 1940. It can be seen from those answers that either the Commonwealth Treasurer made a misstatement to this House regarding the agreement between the Commonwealth Government and the Government of New South Wales, or the Premier of New South Wales made a mis-statement with regard to the agreement. The Treasurer definitely told this House that the New South Wales Government would not be allowed to carry out the past practice of using Commonwealth money voted for the purpose of giving additional work to the unemployed in order to relieve itself of the responsibility of tackling its own unemployment problem and, in effect, transferring .Commonwealth money tobalance the State budget.

Mr Spender:

– That is quite right. That was the undertaking given by the State Government to me.

Mr ROSEVEAR:

– I am glad the Treasurer is in agreement with me on one point. The fact is that the undertaking has not been carried out. The Treasurer had the effrontery yesterday to convey to this House the impression that I was misleading honorable members by saying something which was untrue.

Mr Spender:

– Apparently, the honorable member has not read the answer which I gave to his question.

Mr ROSEVEAR:

– I have not only given the names of the jobs financed by the State Government from which men have been taken and placed on other work financed by the Commonwealth, but I have also quoted the statement of the

Premier of New South Wales that he had po other obligation.

The Premier of New South Wales went further, and said -

Men employed on rationed relief works retained their registration as unemployed persons at the State Labour Exchanges and rationed relief workers employed on the works mentioned were called up in pursuance of the arrangement referred ‘ to in ( 1 ) with other registered unemployed.

The Treasurer says that the Premier’s statement with regard to answer 1 was not correct and was not in conformity with the agreement arrived at between the Commonwealth and the State Governments. My submission is that the State Government is using the Commonwealth money in order to relieve its own financial responsibility and improve its own budgetary position. The unemployed are not benefiting as the result of the £850,000 voted for their relief by the Commonwealth Government. When he introduced this measure, the Treasurer said that the £850,000 would go a long way towards relieving unemployment in the States.

Mr SPENDER:
Treasurer · Warringah · UAP

– I shall reply first to the honorable member for Dalley (Mr. Rosevear). When the Commonwealth made available £2,000,000, to be divided among the States for certain defence works of low priority, in order to relieve the unemployment position in the States, the question to which the honorable member has referred at great length today was brought up in this House. What I said then, and what I now repeat as being the arrangement between myself and the State of New South Wales, is first, that the money to be advanced was to be in no way a contribution to the budgetary position of the State ; secondly, that it was in. no way to diminish the amount to be expended by the State in the relief of unemployment ; and, thirdly, that the permissible income provision would have no application to work carried out with the amount made available. The arrangement has not been challenged by any one excepting the honorable member.

Mr Rosevear:

– I challenge it.

Mr SPENDER:

– The allegation of the honorable member of itself proves nothing. The mere fact that he has read to the House something which does not, in fact, support his contention does not establish his proposition. I believe that I am correct in saying that the arrangement which I made with Mr. Bellemore is contained in correspondence; if so, the production of that correspondence will put the matter beyond all doubt. What I said yesterday in answer to a question by the honorable member was that when this matter was brought up previously I took the trouble to make inquiries to ascertain whether the basis of our arrangement had been departed from by the State Government, and that the result of my inquiry showed that there was no substance in the allegation. 1 was in touch with Mr. Bellemore, who gave me an assurance that the terms of the agreement were adhered to. The matter did not arise again until a few days before Parliament met, when similar allegations were again made. Before any suggestion was made to me by any one, I took it upon myself to get into touch with the Premier of New South Wales and to ask him whether there was any truth in the allegation, and, if not, to supply me with details so that I could establish that the allegations were without foundation. Yesterday, I intimated that I had not received a reply. I make it plain that what I said to the House on the last occasion as to the arrangement between myself and the Government of New South Wales was unquestionably true. If there has been any departure from the arrangement I shall have it investigated. The particulars which the honorable member has furnished will be investigated by me. I hope to obtain an answer from the Government of New South Wales, and to inform the honorable member accordingly, when Parliament assembles on Monday next.

With respect to the statement of the honorable member for New England (Mr. Thompson) regarding various suggestions in the press as to the form of the financial proposals to be brought before the Parliament, I can only say that the Government is not responsible for them. It has become the habit of certain newspapers to indulge in such speculation. Should they do so, the Government accepts no responsibility in the matter. On two occasions I have made it clear that statements which have appeared in the press were purely speculative.

Mr ARCHIE CAMERON:
BarkerActing Leader of the House · CP

– in reply - The remarks of the Leader of the Opposition (Mr. Curtin) with regard to

I undertake that satisfactory action will be taken to deal with the matter raised by the honorable gentleman.

Question resolved in the affirmative.

House adjourned at 3.59 p.m.

page 236

ANSWERS TO QUESTIONS

The following answers to questions were circulated: -

Flour Tax

Mr Gregory:

y asked the Treasurer, upon notice -

What is the method or formula under which the Wheat Stabilization Advisory Committee recommends to the Treasurer the amount of tax, as provided in section 5 of the Flour Tax Act 1938?

Mr Spender:
UAP

– The formula under which the Wheat Stabilization Advisory Committee is required to arrive at the amount which it recommends to be the rate offlour tax is contained in section 5 of the Flour Tax Act 1938. The method of arriving at the two flour prices (per ton) required to be ascertained by the committee is as follows : -

Note. - 48 bushels of wheat produces 2,000 lb. of flour and 880 lb. of offals (bran and pollard ) approximately.

Acquisition of Wheat

Mr Gregory:

y asked the Minister for Commerce, upon notice -

  1. What were the quoted prices of wheat in Sydney, Melbourne and Perth on the lath September, 1939?
  2. On what date did the Government notify its intention to acquire all wheat in Australia v
  3. On what date did the Government acquire this wheat?
  4. In making payments to holders of wheat in the No. 1 pool, what action, if any, has the Government taken in reference to wheat taken over by wheat merchants in Western Australia who had taken possession of wheat under advance contracts on the 15th September, 1939?
Mr Archie Cameron:
CP

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

  1. The prices of wheat in the three cities mentioned on the 15th September, 1939, were: Sydney, bulk 2s. l1d. a bushel f.o.r., bagged (nominal) 3s. 2d. a bushel f.o.r.; Melbourne, there were no. quotations as millers’ and shippers’ limits had been withdrawn; Perth, bulk 1s. l0d. a bushel at siding (on 4d. siding basis), bagged Is.11d. a bushel at siding (on 4d. siding basis). (These were quotations by Westralian Farmers Limited. There were no other quotations in Perth at the time.)
  2. An announcement of the Government’s intention to acquire wheat was made on the 13th September, 1939.
  3. Wheat was acquired in Western Australia on the 23rd September, 1939, and in New South Wales, Victoria, and South Australia on the 9th October, 1939. These acquisitions were old crop wheat. Notice of acquisition of the 1939-40 crop was issued on the Kith November.
  4. The Government has decided to establish a hardship tribunal to inquire into all cases of alleged hardship arising from cancellation of contracts because of wheat acquisition.

Munitions Factories Employees

Mr GEORGE LAWSON:
BRISBANE, QUEENSLAND · FLP; ALP from 1936

n asked the Minister for Supply and Development, upon notice -

  1. What is the total number of employees engaged in the manufacture of arms, munitions and the like in the various States?
  2. What is the total amount of salaries and wages paid to such employees?
Sir Frederick Stewart:
UAP

– As activities in connexion with the manufacture of arms, munitions and the like are now so widely dispersed over private establishments in addition to government establishments, it is not practicable to furnish the particulars desired.

Tobacco Duties

Mr Scully:

y asked the Minister repre senting the Minister far Trade and Customs, upon notice -

In view of the adverse trade balance and the need for conserving dollar exchange, and in order to give encouragement to Australian tobacco-growers, will the Minister increase the duty on imported tobacco leaf and reduce the excise, restoring the duty to that imposed by the Scullin Government?

Mr Spender:
UAP

– Representations recently made to the Minister for Trade and Customs by a tobacco-growers’ organization are being considered. The question raised by the honorable member will be considered in conjunction therewith.

Radio-Telephone Service to Tasmania and Flinders Island

Mr Barnard:
BASS, TASMANIA

d asked the PostmasterGeneral, upon notice -

  1. Have the experiments bei ng conducted with the radio-telephone between Flinders Island, Tasmania and the mainland been completed?
  2. If so, can he say when the radio link will be instituted?
Mr Thorby:
CP

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

  1. Negotiations are proceeding between the Postmaster-General’s Department and the Department of Civil Aviation for the use of the proposed aeradio station at FlindersIsland for the purpose of establishing a commercial radio-telephone service between the island and the rest of the Commonwealth. It is not possible at present to indicate when this service is likely to be in operation.
  2. See answer to No. 1.

Defence Works Expenditure

Mr GEORGE LAWSON:
BRISBANE, QUEENSLAND · FLP; ALP from 1936

n asked the Minister for the Army, upon notice -

What is the total amount that has been expended by the Government on defence works of all kinds in each State fromthe 1st July, 1939, to the 31st March, 1940?

Mr Street:
UAP

– Total expenditure on defence works in each State from the lst July, 1939, to the 31st March, 1940, was -

These amounts include expenditure on works on behalf of the Departments of Defence Co-ordination, Navy, Army, Air and Supply and Development, but do not include expenditure by State governments on works of a defence value carried out under the Federal Aid Roads and Works Agreement. The latter . information is not at present available and would have to be obtained from the State governments.

Cite as: Australia, House of Representatives, Debates, 19 April 1940, viewed 22 October 2017, <http://historichansard.net/hofreps/1940/19400419_reps_15_163/>.

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