House of Representatives
20 August 1940

15th Parliament · 2nd Session



Mr. Speaker (Hon.G.J. Bell) took the chair at 3 p.m., and read prayers.

page 418

QUESTION

WET CANTEENS IN MILITARY CAMPS

Mr JAMES:
HUNTER, NEW SOUTH WALES

– Is the Prime Minister aware’ that members of the Military Forces are committing breaches of the law in different places by reason of the unrestricted quantity of alcohol that they are able to obtain in hotels when on leave? Seeing that the establishment of wet canteens in military camps would have a restrictive influence, is it the intention of the Government to take this action and thus enable the rank and file, as well as officers, to obtain alcohol in those camps? If this action is proposed, will it be taken before the ensuing elections are held, or does the right honorable gentleman intend to leave it to a Labour government after the elections?

Mr MENZIES:
Minister for Defence Co-ordination · KOOYONG, VICTORIA · UAP

– I was not aware of the existence of the state of affairs described by the honorable member. The second portion of his question relates to a matter of policy, to which it is not customary to reply.

page 418

MINISTERIAL CHANGES

Mr MENZIES:
Prime Minister · Kooyong · UAP

– I desire to inform the House that, consequent on the deaths of the Honorable G. A. Street, M.C., Minister for the Army and Minister for Repatriation, of the Honorable

Sir Henry Somer Gullett, K.C.M.G., Vice-President of the Executive Council, and of the Honorable J. V. Fairbairn, Minister for Air and Minister for Civil Aviation, the following appointments were made by His Excellency the Governor-General on the 14th August. -

Senator the Hon. P. A. M. McBride, Minister for the Army and Minister for Repatriation.

Hon. A. W. Fadden, M.P., Minister for Air and Minister for Civil Aviation

Senator the Hon. H. B. Collett, C.M.G., D.S.O., V.D., Vicepresident of the Executive Council.

Senator McBride and Mr. Fadden will, by virtue of their office, be members of the War Cabinet.

Senator Collett will be the Minister in charge of Scientific and Industrial Research.

page 418

IMPORTS OF TOBACCO

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

– During the last period of the session the honorable member for New England (Mr. Thompson) asked that I should place before the Minister for Trade and Customs a suggestion that, before any licences for the importation of tobacco leaf from the United States of America are issued, a full statement regarding the position, particularly in relation to local stocks of both imported and local leaf, be submitted to Parliament.

The Minister for Trade and Customs has now supplied me with the following information : -

  1. The stocks of tobacco leaf held by manufacturers in Australia on the 30th June, 1940, were -
  1. During the year ended the 30th June, 1940, the quantity of tobacco leaf used in manufacture of tobacco, cigars and cigarettes in Australia was -
  1. The production of tobacco leaf in Australia during the last two seasons was -

Apart from the tobacco leaf purchased in the United States of America before the outbreak of war, practically no licences have been issued for tobacco leaf. From the figures furnished above it will be observed that Australian manufacturers are using approximately 2,000,000 lb. of Australian leaf more than is produced in Australia annually. Yearly consumption of locally-grown leaf represents 50 per cent. more than the total Australian annual production. Therefore, even in normal circumstances without the assistance of licensing, a considerable opportunity exists for tobacco-growers to increase production. The only qualification I would make is that the increased production must be a good quality smokable tobacco.

page 419

QUESTION

HONORABLE B. S. B. STEVENS

Interview with Prime Minister.

Mr GANDER:
REID, NEW SOUTH WALES

– Can the Prime Minister clear up the mystery surrounding the interview that recently took place between himself and the Honorable B. S. B. Stevens,at one time Premier of New South Wales? Did the right honorable gentleman invite Mr. Stevens to interview him at either Canberra or Melbourne? If not, did Mr. Stevens invite himself?

Mr MENZIES:
UAP

– I can well understand the honorable member’s curiosity concerning what was, after all, a purely private conversation. If he will be good enough to place his question on the noticepaper for one day next week, I shall be pleased to furnish him with an answer to it.

page 419

QUESTION

PETROL RATIONING

Mr NAIRN:
PERTH, WESTERN AUSTRALIA

– Will the Minister for

Supply and Development state whether the published details of the petrol rationing scheme of the Government are correct? Are vehicles used exclusively for commercial purposes, such as the supply of bread and milk, to be rationed to an estimated 5,000 miles a year? Will the honorable gentleman also say why vehicles that are used partly for business and partly for private purposes, are to be rationed up to an estimated 10,000 miles a year? Why has such a low scale been provided for vehicles engaged in purely commercial and essential services?

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

– If the honorable member will peruse the scale of tables, a copy of which I understand has been supplied to him, he will see that in each of the two cases mentioned by him the rationing is based on an effective mileage comparable with the mileage covered last year. By the strict application of that principle it will be impossible for the inequities implied by him to occur.

Later:

Mr ANTHONY:
RICHMOND, NEW SOUTH WALES

– What is the estimated percentage reduction of the importation of petrol which is expected to accrue from the new petrol rationing scheme? Can the Minister for Supply and Development estimate the amount of sterling and dollar exchange which will be saved as theresult of the scheme ?

Sir FREDERICK STEWART.Answering the first part of the question, I assure the honorable gentleman that the Government’s objective has been, and is, the saving of 331/3 per cent. on the pre-war civil consumption of petrol. There has been no change. I shall have inquiries made and supply information in answer to the second part of the question.

Mr ANTHONY:

– As there appears to be confusion in the public mind concerning the necessity to ration petrol, I ask the Prime Minister whether he will state the reasons which have causedthe Government to take steps to that end? Has the Government given consideration to the loss that must necessarily accrue to trade and industry in consequence of the rationing of petrol? If so, doesthe right honorable gentleman still consider that rationing is inevitable?

Mr MENZIES:
UAP

– I must ask the honorable member to excuse me for not making an exhaustive statement on the reasons for the introduction of petrol rationing. I shall, however, be happy to have a statement on the subject prepared. I have no doubt whatever concerning the need for rationing. Other parts of the British Empire, notably Great Britain and New Zealand, have instituted some time since a system for the rigid control of imports, and this has involved petrol rationing. I am quite sure that Australia will not desire to play less than its part in the conservation of funds for necessary war purposes.

page 420

QUESTION

AUSTRALIAN IMPERIAL FORCE

Service in Australia.

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

– In view of the fact that a large number of men who enlisted in the Australian Imperial Force for overseas service have been sent to defence bases in north Australia, possibly for the duration of the war, can the Prime Minister state whether they will be classified as returned soldiers in accordance with the provisions of the Commonwealth Public Service Act and any other acts giving preference to returned soldiers?

Mr MENZIES:
UAP

– I cannot answer that question off-hand. I shall furnish the honorable member with a reply to it to-morrow.

page 420

LEAVE OF ABSENCE

Motion (by Mr. Scholfield) - by leave - agreed to.

That leaveof absence for the, remainderof the session be given to the honorable member for Balaclava (Mr. White) on duty with the Royal Australian Air Force.

page 420

QUESTION

AUSTRALIAN MINISTER TO JAPAN

Mr JENNINGS:
WATSON, NEW SOUTH WALES

– In connexion with the appointment of Sir John Latham as Australian Minister to Japan, will the Minister for External Affairs state whether important discussions in relation to Pacific problems will, in future, be negotiated direct with Japan, or in collaboration with the British Government?

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

– The appointment of an Australian Minister to Japan will in no sense alter the very closest collaboration between the Governments of Australia and the other dominions and the Government of the United Kingdom, in reference to all matters affecting foreign policy, and especially Far Eastern policy. The Government of Australia doubtless will be better informed by reason of this direct representation in Japan. Certainly it will be more intimately and more immediately informed, in relation to matters of interest in the Far East. The reciprocal appointment of a Japanese Minister in Australia will add to the effective ness of the exchange of information. As to the actual devising of Empire policy, I can say that the policy of close consultation and collaboration which has been followed in the past will be continued.

Later:

Mr ROSEVEAR:
DALLEY, NEW SOUTH WALES

– Has the Minister for External Affairs noticed the press controversy respecting the legal propriety of appointing the Chief Justice of Australia, Sir John Latham, as Australia’s representative at Tokyo, Japan? Can he say whether, before making the appointment, the Government satisfied itself that the appointment would be perfectly legal?

Mr McEWEN:
CP

– I have not noticed any newspaper controversy on the subject, but the Government is convinced that the step taken is a proper one.

Mr Rosevear:

– Is it proper in a legal sense?

Mr McEWEN:

– It is proper in every way. Legislation will be introduced during this session to deal with certain aspects of this matter.

Later:

Mr BEASLEY:
WEST SYDNEY, NEW SOUTH WALES

– Can the Minister for External Affairs explain to the House the exact powers of the Ministers that have been appointed to represent Australia at Washington and Tokyo ?

Mr McEWEN:
CP

– That question is of sufficient importance for me to ask time to prepare a considered reply. I ask that it be put on the notice-paper.

page 420

QUESTION

APPLES AND PEARS

Mr FROST:
FRANKLIN, TASMANIA

– Can the Minister for Commerce say whether, at the conference of fruit-growers held in Sydney last week, a final decision was reached regarding the disposal of the 1940-41 apple and pear crop ? If so, will he give particulars to the House?

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

– I believe that a final decision has been reached in respect of the apple crop. The terms will be made public after certain negotiations with the State governments have been completed. So far as pears are concerned, difficulty has arisen in regard to canned fruits. As soon as the matter has been cleared up, and there is some indication of what the pear crop is likely to be, it is hoped that a similarly satisfactory conclusion will be reached in respect of pears.

page 421

QUESTION

WAR AIR LOSSES

Mr BADMAN:
GREY, SOUTH AUSTRALIA

– Can the Minister for External Affairs say whether the figures concerning British and German air losses, as published in the press from British sources, are correct? If so, will he take steps to see that only British figures are published, so that the people will not be misled by the different figures announced by Germany?

Mr McEWEN:
CP

– I am able to reply to the honorable gentleman’s question with an intimate knowledge of the facts. The Commonwealth Government is informed by cable at least once a day, and on many occasions more than once a day, of the fullest details of war operations during the previous 24 hours. From my knowledge of the British Government’s reports, I can assure the House that Australian newspapers give prompt and accurate reports of the successes and losses of the respective air forces.

page 421

QUESTION

WOOL APPRAISEMENT

Mr MARTENS:
HERBERT, QUEENSLAND

– For some time I have sought information from the Minister for Commerce in regard to wool appraisement centres. Is the Minister yet in a position to tell the House what centres have been selected for this purpose ?

Mr ARCHIE CAMERON:
CP

– I shall make a statement on the subject shortly.

page 421

QUESTION

PAPUA AND NEW GUINEA

Sir CHARLES MARR:
PARKES, NEW SOUTH WALES

– Can the Minister in charge of Externa] Territories say whether it is correct, as stated in the press, that the Government is giving consideration to a joint administration for Papua and New Guinea? If such be the case, will the Government consider the establishment of aterritorial service which will enable officers to be transferred to positions in either Papua or New Guinea, with a view to benefiting both services?

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

– The answer to the first part of the honorable member’s question is “ No “, and therefore the second part of his question does not require an answer.

page 421

QUESTION

UNITED STATES OF AMERICA AND CANADA: DEFENCE BOARD

Mr THOMPSON:
NEW ENGLAND, NEW SOUTH WALES

– Can the Minister for External Affairs say whether the Government has received any information about the establishment of a joint Defence Board by Canada and the United States of America, and can he make a statement to the House on the subject?

Mr McEWEN:
CP

– The Government has been informed that a joint Defence Board has been established by the United States of America and Canada. I understand that on this board each of the two nations concerned will have equal representation, and that the personnel will consist principally of members of the services of the respective countries. It would appear that happenings during the last few months have convinced the people and the Administration of the United States of America that the defence of that country, and, indeed, of the Americas generally, cannot be regarded on the basis of insularity, but that the first line of defence of the American continent is the British navy. The recognition of that fact has caused the establishment, for the first time in history, of a defence board representing a belligerent in a major war and a neutral country. As this defence board has been set up principally to ensure the defence of the northern half of the western hemisphere, which includes a substantial portion of the Pacific basin, its establishment is of particular interest to Australia and New Zealand.

page 421

QUESTION

UNEMPLOYMENT

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

– Has the Prime Minister noticed in the press a statement attributed to Sir Phillip Goldfinch, an officer of the Ministry of Munitions, that there are about 5,000 unemployed males in Victoria and about 46,000 unemployed males in New South Wales? Can the right honorable gentleman say whether those figures are correct;and if they be not correct, will he take steps to prevent the dissemination of loose statements by officers associated with the Government?

Mr MENZIES:
UAP

– I have not seen the statement complained of, but I can hardly imagine that Sir Philip Goldfinch could have been correctly reported as saying that there are only 5,000 unemployed males in the State of Victoria. There are substantially more than that. My recollection, which I shall check, is that there are somewhere between 25,000 and 30,000 in that category in Victoria. I shall ascertain the precise figures so far as they can be obtained and give them to the honorable gentleman.

Mr LANE:
BARTON, NEW SOUTH WALES

– When the Prime Minister is checking up the number of unemployed in Victoria and New South Wales will he also check up the number of men who were unemployed when the Lyons Government came to office in 1932 ? Will he ascertain whether the number was not 200,000?

Mr MENZIES:

– Yes, I shall hare those figures taken out.

page 422

QUESTION

MUNITIONS ANNEXE, LAUNCESTON

Mr BARNARD:
BASS, TASMANIA

– Will the Prime Minister ascertain the position, and if possible, before Parliament adjourns, advise the House, or myself privately, when the contemplated munitions annexe at Launceston will be established and in working order?

Mr MENZIES:
UAP

– I shall obtain such information as is available and give it to the honorable member this week.

page 422

QUESTION

WHEAT ACQUISITION

Mr PROWSE:
FORREST, WESTERN AUSTRALIA

– Can the Minister for Commerce say what the Government intends to do about the acquisition of the 1940-41 wheat crop? Can the Minister say when the next payment will be made for the 1939-40 wheat pool and what the amount of the payment will be?

Mr ARCHIE CAMERON:
CP

– The Government will acquire the next crop in the interests of the farmers. A payment for the 1939-40 pool was made on Friday last. I can assure the honorable gentleman that, at this stage, I have not considered when the next payment will he made.

page 422

QUESTION

POWER ALCOHOL

Mr WARD:
EAST SYDNEY, NEW SOUTH WALES

– I ask the Prime Minister: Has the Government had submitted to it by a Mr. Buckman a formula for the manufacture of a motor fuel with a power-alcohol base, and requiring no dilution with petrol? Was such fuel sub mitted to test by the Commonwealth Fuel Advisor (Mr. Rogers) and found to be entirely satisfactory ? Did Mr. Buckman, as the inventor, indicate that in territories under the control of the Commonwealth there were materials sufficient to produce at least 200,000,000 gallons of power alcohol per annum at a price which would make it economically sound ? If so, why has the Government not taken action to make use of this formula in order to conserve dollar exchange and, at the same time, make Australia independent of overseas sources for the supply of fuel?

Mr MENZIES:
UAP

– A proposal substantially of the kind referred to by the honorable member was submitted to the Ministry and it was examined on certain aspects by Mr. Rogers, the department’s expert. The problem of the economics of the proposal will come before the Power Alcohol Committee which will begin its sittings, I think, on Thursday this week.

page 422

QUESTION

BOMB-PROOF SHELTERS

Dr MALONEY:
MELBOURNE, VICTORIA

– I ask the Minister for Defence Co-ordination whether instructions have been given for the erection of refuges from bombs in Melbourne ? If so, where are they? Will he consider the erection of underground passages at the intersection of Elizabeth, Swanston, Russell and Flinders streets to the railway stations, so that when the war is over, they will still be useful?

Mr MENZIES:
UAP

– I shall look into that matter.

page 422

QUESTION

WOOL CONTRACT

Mr PROWSE:

– I ask the Minister for Commerce whether, in view of rising costs of production in Australia, it is proposed to review the contract with the Government of the United Kingdom for the disposal of Australian wool in the coming season?

Mr ARCHIE CAMERON:
CP

– The price obtained last year will rule for this year too.

page 422

QUESTION

MAGNESIUM ALLOY

Mr MAHONEY:
DENISON, TASMANIA

– In view of the fact that Great Britain and Australia are dependent on the United States of

America for supplies of magnesium alloy for the production of aircraft and that the United States of America will allow only limited supplies to come to Australia, which has urgent need of the metal, will the Prime Minister take the necessary steps to establish in Australia an industry for the production of magnesium ?

Mr MENZIES:
UAP

– I am aware of the honorable member’s interest in this matter, because he has spoken to me about it himself. The matter is at present under investigation. As soon as I am able to give him a reply I shall do so.

Mr Mahoney:

– Will that be before the elections?

Mr MENZIES:

– Oh, yes.

page 423

QUESTION

CENSORSHIP

American Journalists

Mr JAMES:

– Has the Prime Minister seen in the Sydney Morning Herald and other newspapers, reports that the journalists from the United States of America, who are visiting Australia, had interviews with the Director-General of Munitions Production, Mr. Essington Lewis, and took newsreels of various Australian munitions works? Has the Prime Minister also seen photographs which show that some of these journalists carry cameras? Will the pictures that have been taken by these journalists be allowed to go out of Australia? If so, how can that conform to the regulations that were issued early in the war forbidding citizens to approach defence works with cameras? I do not raise this matter in a hostile way, because we welcome these people, and are friendly to them and their nation, but does the Prime Minister not think it extremely dangerous for photographs of important defence works to be taken out of this country?

Mr MENZIES:
UAP

– The journalists, and presumably the photographers, referred to, were accompanied by the Director- General of Information, who administers the censorship. I assume that the ordinary rules of censorship have applied, but I shall ascertain whether that is so.

page 423

QUESTION

GENERAL ELECTIONS

Mr PERKINS:
EDEN-MONARO, NEW SOUTH WALES

– Will the Minister representing the Minister for the Interior inform me whether, for the pur poses of the next general elections, members of the Australian Imperial Force and Royal Australian Air Force at present on service in Darwin will be enrolled as electors of the Northern Territory or of the electoral divisions in which they resided prior to going to Darwin?

Mr NOCK:
CP

– I shall obtain the information for the honorable member.

Mr GANDER:

– Is the Minister representing the Minister for the Interior able to tell me the last day upon which citizens will be able to secure enrolment on the supplementary rolls for the purposes of the coming elections?

Mr NOCK:

– The information will be made available in due course, and in good time.

page 423

QUESTION

HOUSING CONDITIONS IN DARWIN

Mr CONELAN:
GRIFFITH, QUEENSLAND

– Has the attention of the Minister representing the Minister for the Interior been drawn to the appalling housing conditions prevailing at Darwin which require two or three families to live in one small house, and, in many cases, the husbands to live in tents apart from their families? If so, what does he intend to do to improve such conditions?

Mr NOCK:
CP

– My attention has not been drawn to the matter referred to by the honorable member, but if he will furnish me with a statement relating to the conditions of which he complains. I shall submit it to theMinister for the Interior for inquiry.

page 423

LEAGUE OF NATIONS ASSEMBLY

Report of Australian Delegation

Mr McEWEN:
CP

– I lay upon the table the following paper: -

League of Nations - 20th Assembly - December 11th to 15th, 1939 - Report of Australian Delegation

Ordered to be printed.

page 423

QUESTION

MOTOR VEHICLE MANUFACTURING INDUSTRY

Mr ROSEVEAR:

– Is the Prime Minister able to say whether there is any foundation for current rumours that Australian Consolidated Industries Limited has entirely dropped its plans for the establishment of the motor vehicle manufacturing industry in Australia? If there is no foundation for these rumours, will the right honorable gentleman inform me whether the company intends to commence operations before the end of the war?

Mr MENZIES:
UAP

– I do not know what the position is at the moment, but I shall make inquiries from the company to ascertain the exact situation.

page 424

PUBLIC WORKS COMMITTEE

Repatriation Hospital, Randwick

Mr. FRANCIS, as chairman, presented the report and recommendations of the Parliamentary Standing Committee on Public Works relating to the proposed erection of a repatriation hospital at Randwick.

page 424

QUESTION

PETROL IMPORTS

Mr PERKINS:

– Will the Minister for Supply and Development furnish me with the latest available figures showing the monthly, quarterly or half-yearly importations of petrol from abroad, and indicating whether they show a decline of such im por ta tions ?

Sir FREDERICK STEWART:
UAP

– I shall be pleased to go through the figures and furnish them to the honorable member.

page 424

QUESTION

INTERNMENT OF ENEMY ALIENS

Mr THOMPSON:

– Has the Prime Minister noticed recently published press statements attributed to Mr. Mair, the Premier of New South Wales, to the effect that the present system of interning enemy aliens is inadequate, and that, in the opinon, of his Government, all enemy aliens should be interned to ensure the safety of this country ? Has the Commonwealth Government taken any steps to ascertain whether the present methods of internment are adequate for the safety of the country,

Mr MENZIES:
UAP

– I have seen statements of the kind referred to by the honorable member. The Commonwealth Government does not accept the view that all enemy aliens, irrespective of their circumstances, should be interned. The Government has applied the policy of interning all people who are disloyal, or who have been found guilty of subversive activities. Where there is any real doubt, the benefit of it is given to the safety of the community. Where there is no such doubt, the Government is not able to agree that persons who have been received into the sanctuary of this country should not be permitted to enjoy it.

page 424

QUESTION

BARLEY ACQUISITION SCHEME

Mr GREGORY:
SWAN, WESTERN AUSTRALIA

– I ask the Minister for Commerce whether, in view of the serious loss that Western Australian growers of two-row barley have incurred in consequence of the adoption of the barley acquisition scheme, action will be taken to compensate them?

Mr ARCHIE CAMERON:
CP

– All questions relating to breaches of contract in that connexion have been submitted by the Commonwealth Government to His Honour Judge Payne for consideration. Claims may be presented to His Honour until the end of this month.

page 424

NATIONAL SECURITY ACT

Motion to Disallow Regulations

Mr ROSEVEAR:
Dalley

.- I move -

That regulations 1, 2, 3 and 4 of the National Security (Employment) Regulations (contained in Statutory Rules 1940, No. 128, made under the National Security Act 1939- 1940) be disallowed.

I have moved this motion because the regulations constitute a definite and indisputable step in the direction of industrial conscription. From time to time legislation has been passed dealing in a general way with the control of labour and industry, but these regulations leave no possible room for doubt regarding the Government’s intention. Parliament met on the 6th August, and that was the first opportunity which presented itself to move a motion for the disallowance of the regulations. My, motion was lodged on the 7th August, so it cannot be said that I jumped the claim of any one else who might have desired to move a motion of this kind. Since notice of my motion was given, the Australasian Council of Trade Unions has become interested in the matter. According to a press report, a telegram has been despatched by the council urging the Federal Labour party to move for the disallowance of Statutory Rule 128 under the National Security

Act. I cite that not to canvass support for my motion, but to controvert certain statements made in the Senate that the trade union movement supported the regulations.

It is interesting to trace the development of this matter. Two previous pieces of legislation have a bearing upon it - the National Security Act 1939-1940 and the National Registration Act 1939. They may be regarded as pointers indicating the general trend of Government policy regarding the control of labour. Upon the introduction of the National Registration Bill, the Opposition vigorously objected on the ground that the Government was preparing the way for industrial conscription. This was emphatically denied by members of the Government, and by all honorable members supporting the Government who took part in the debate. The then Minister for the Army, the late Mr. Street, when moving the second reading of the National Registration Bill, said -

There are, I believe, some who say that this is a form of industrial conscription, that it is proposed to do something that is foreign to the spirit of democracy, something thai is abhorrent to Australians.

Those are strong words, stronger perhaps than those used by many who condemned the bill as a step in the direction of industrial conscription, but they were used by a responsible member of the Government. The next step was taken when the Supply and Development Bill was introduced. The Opposition was again suspicious of the Government’s intentions, because of the special manner in which it was proposed to treat servants of the Crown. The Opposition believed that, under the powers conferred in the bill, the Government could apply industrial conscription to persons in the service of the Crown, In order to allay fears of that kind the Government on 30th September, 1939, adopted the rather unusual procedure of supporting amendments moved by the Opposition to the Supply and Development Bill and designed to remove all doubt on this point. It is also important to remember that an amendment of section 13 of the National Security Act, passed on the 20th June of this year, gives the Government power over all persons, and “ all persons “ means, I take it, persons of all ages and both sexes. Therefore, every one, irrespective of age or sex, is covered by Statutory Rule No. 128 and its regulations, which I have moved to disallow, because they constitute a definite instalment of industrial conscription. These are the earliest regulations issued in pursuance of the enormous powers recently granted to the Government under the National Security Act. They supersede regulation 59 a of the 24th May, 1940, which was cancelled by Statutory Rule No. 157. What was the effect of regulation 59 a, which has now been cancelled ? Regulation 2, paragraphs 1, 2 and 3, which I am now moving to disallow, are precisely the same as 59 a, paragraphs 1, 2 and 3, up to a point, but here is the difference: Paragraph 2 of 59 a contains these words -

But nothing in this regulation shall authorize the imposition of industrial conscription.

These vital and- significant words are missing from the regulation under discussion. Even the Prime Minister will not deny that the deletion of those words was deliberate, and that its only purpose must be the abolition of the one safeguard that the workers had against industrial conscription.

Mr Menzies:

– The honorable member is falling into error. Those words were omitted by a recent amendment of the National Security Act.

Mr ROSEVEAR:

– I do not deny that, but the Prime Minister will admit, I am sure, that the amendment, no matter what may appear in these regulations, covers persons of all ages and both sexes. The mask of deception has been dropped, and that which the Opposition feared, and the Government denied, namely, industrial conscription, has been brought about. The story, in sequence, is that regulation 59 a, gazetted on the 24th May, 1940, deliberately prohibited industrial conscription. The next step was that on the 20th June, 1940, the Government amended the National Security Act to permit the industrial control of all persons and subjected them to. a form of compulsion in industry. The regulations of the 5th July last superseded and abolished the safeguard contained in regulation 59 a, and represented the first instalment of industrial conscription. In. the words of the late Mr. Street, “ something that is foreign to the spirit of democracy, something that is abhorrent to Australians “, has come to pass. Paragraph 1 of regulation 2 provides that if it appears to the Minister that the efficient prosecution of the war is likely to be prejudiced by reason of a shortage of persons skilled in any particular trade, he may take action to train a sufficient number of persons in that trade. This, of course, means the dilution of skilled trades. Paragraph 2 empowers the Minister to destroy any award, determination or agreement in order to carry out his purpose. I submit that the onus of proof that there is a scarcity of skilled labour in any industry rests on the Government. After viewing the munitions works and annexes we are convinced that the skilled men in those works are not being used to the fullest advantage. This was particularly noticeable when we visited the Chullora workshops and annexe. Fifty men were engaged inside the munitions annexe at the Chullora shops and of the 30 outside the annexe who were employed in British munitions factories during the last war, not one is engaged in munitions work to-day despite the fact that their services have been offered to the Government by the New South Wales Railways Commissioner. Similar offers by State workshops and by private manufacturers have been rejected. I have no doubt that such a state of affairs exists in many other places. Apparently it does not suit the Government to make use of available skilled labour, though for what reason I have never been informed.

Mr Gregory:

– What would be the Government’s object in refusing to employ these men?

Mr ROSEVEAR:

– I do not think the Government is aware of the position. It is satisfied to obey the dictates of the representatives of big business in this connexion. For all we know, it might suit Mr. Essington Lewis’s purpose to keep these factories out of the munitions pool, and I presume that it is his guidance that the Government is following. Regulation 2 provides that if it appears to the Minister that there is a scarcity of labour he may take action to correct the position. I question very much whether the Minister, offhand, could even name half a dozen factories engaged in the manufacture of munitions, or whether he could tell the House, from his personal knowledge, anything about the availability of skilled labour in certain industries. Although the regulation provides that the Minister may do certain things, he has to rely for advice on his advisers, in this case the State munitions boards or Mr. Essington Lewis. Who, after all, is Mr. Essington Lewis?

Mr Nairn:

– He is the best man in Australia for the job.

Mr ROSEVEAR:

– That may be so, but we must also remember that he is a representative of the steel combine which is the biggest “ munitioneer “ in Australia. He is certainly no good friend of the workers engaged in the steel industry. Who are the members of the New South Wales Munitions Board ? The board comprises Sir Phillip Goldfinch, managing director of the Colonial Sugar Refining Company Limited; Mr. Hartigan, Commissioner of Railways for New South Wales, and Mr. Kneeshaw, a representative of the cement combine, who was at one time and may still be as far as I am aware, a member of the United Australia party consultative council of New South Wales. Thus, this fine democratic organization is largely composed of those who rank in the Commonwealth as the greatest exploiters of the workers. Trade union officials say of their companies that they always attempt to evade awards of the Arbitration Courts by pleading that the industries they represent should not be covered by the awards. These are the men upon whose advice the Minister will make his decisions. I anticipate the reply of the Prime Minister that on the New South Wales Munitions Board is also a representative of the trade union movement, Mr. Cranwell, of the Amalgamated Engineers Union. How did Mr. Cranwell secure his appointment? I addressed a question to the Prime Minister in this House on the 6th August last in an endeavour to ascertain this information. I knew that Mr. Cranwell was not recommended for appointment by the Australasian Council of Trade Unions, by the Trades and Labour Council of New South

Wales or by any responsible union. I was informed by the Prime Minister that he was appointed on the recommendation of the Munitions Board itself. The trade union movement has always jealously guarded its right to elect its own representatives to these bodies. Why was it not permitted to do so on this occasion? Some years ago a delegation in which he was a representative of the trade union movement was appointed by the Bruce-Page Government to visit America. Included in the delegation, however, was a man who had not been endorsed by any trades and labour council in Australia.

Mr. SPEAKER (Hon. G. J. Bell).Order ! The honorable member is not discussing the motion.

Mr ROSEVEAR:

– I am endeavouring to point out the credentials of the gentleman who is supposed to represent the Labour movement on the New South Wales Munitions Board.

Mr SPEAKER:

– The question of the appointment of a member of a delegation appointed years ago can scarcely be related to the motion before the Chair.

Mr ROSEVEAR:

– I merely refer to it to show how the trade union movement has always jealously guarded its right to choose its own representatives. That was the first demonstration of force on the part of the Labour movement against this method of making such appointments. There was a similar disputation between the Labour movement and the Government in connexion with the selection of delegates to represent the movement at Geneva.

Mr SPEAKER:

– Order ! The honorable gentleman must realize that he is not discussing the motion before the Chair.

Mr ROSEVEAR:

– The Labour movement has the same deep-rooted objection to-day to delegates being selected as the men have been selected for these particular boards, which are typical of the committees that will guide the Minister in making his decisions. I cast no aspersion on the patriotic endeavour of the members of these boards; they may bo impelled by the highest patriotic motives. But it must always be remembered that the interests which they represent, and will continue to repre sent after the termination of the war, are interests that have fought the Labour movement from time immemorial. The Labour movement has expended hundreds of thousands of pounds in fighting them in the courts in order to secure for the workers in industry the wages, the hours of labour, the customs, and the usages, that they have. The advantages the workers have derived have been dragged from the employing class. Those interests have been fought tooth and nail. Yet to them is being given the power to destroy all that has been achieved. These conditions in industry have been a thorn in the side of the interests which these persons privately represent, and they would not be human if they did not take some advantage of the powers that they will be able to wield. It may be argued that these regulations cover only certain defined trades. In reply to such a contention I would point out that paragraph 4 of regulation 2 makes the following provision: -

  1. For the purpose of this regulation “ munitions of war “ includes the whole or any part of any ship, submarine, aircraft, tank or similar engine, arms, ammunition, bomb, torpedo, mine, or other article, material or device (whether actual or proposed) intended or adapted foruse in war.

It will therefore be seen that sufficient power is given to enable every sphere of industrial activity to be covered. To say that the regulation merely covers whatwe usually regard as munitions of war is an exaggeration. It covers the whole of the organizations which might, in even the remotest degree, be engaged in war effort. Any factory could be covered, no matter how small its contribution might be to the war effort. Regulation 3 provides that no employer can employ a man without a clearance from his former employer or from the Director of Labour. That places the workers practically in the position of ticket-of-leave men. Paragraph 1 of regulation 4 prevents an employer from offering more than the basic wage for which provision is made in the schedule. This, I contend, is a denial of the first principle of arbitration, under which the practice has been merely to fix the minimum wage tobe paid. This regulation compulsorily makes the minimum the maximum, and. consequently, is opposed to every principle of arbitration. When the Arbitration Court makes an award for the workers, from the labourer to the highest skilled tradesman, it always fixes the minimum wage, and leaves it to the discretion of the employer to compensate a man for any additional skill or ability he may possess. Ry compulsorily making the minimum the maximum, this regulation leaves no margin for the recognition of extra skill or efficiency. It will destroy individuality and initiative, and will lead to a form of passive resistance on the part of those workers in factories who are compelled to give their labour for the wage fixed in the schedules. It is true that any higher marginal rate being paid to an existing employee will be maintained; but any new men who are engaged, no matter how high may be the degree of skill or efficiency they possess, cannot be paid more than the minimum provided in the schedule. That will lead to discontent, and will not make for greater efficiency in this industry, at which the Government professes to aim. We do not propose that there shall be any interference with either the first or the second schedule; that is a simple and an ingenious trap into which we shall not be led. The schedules represent merely classifications and marginal payments for which provision is made in the respective arbitration awards or ‘agreements. These could be safeguarded, in any case, by the policing of the awards. Consequently, the inclusion of the schedules in the regulations does not afford any additional protection. So far, the Government has not attacked those standards, but in all probability they will next be attacked. Speaking on the National Security Bill on the 20th June last, the Prime Minister said -

No government has any desire to impair the industrial standards and conditions that the trade unions of Australia have obtained and now enjoy. Of course not.

He was asked, “ Will you stick to that ? “, and his reply was -

But I say to the honorable member for Wakefield (Mr. McHugh) and to the honorable member for Dalley (Mr. Rosevear) whose voice I hear, that it would be sheer humbug for any Prime Minister- of Australia to stand in his place to-day and say that those standards will never be impaired.

In the Sydney Daily Telegraph of the 27th June last, the right honorable gentleman is reported to have said -

In speeding up the production of munitions, there are bound to be cases of excess spread of hours. Payment for overtime and working conditions generally will be affected.

Clearly, the right honorable gentleman anticipated that there might be reached the stage when these brilliant munitions committees, which are so effectively providing munitions in New South Wales that many of the troops are only partially clothed and armed, would make further recommendations, under which the minimum standards now provided would be attacked. I believe that this will not be the last attack upon the conditions of the workers in industry, but that it is merely the initial step and that other steps will be taken at a later date further to impair those conditions. We shall resist any attack that might be made. We regard the schedule as the irreducible minimum, beyond which the Government is not prepared to go. We now know exactly the intentions of the Government when it introduced the national register and the Supply and Development Bill. It then told this House and the people of this country that it had not the slightest intention to introduce industrial conscription in Australia. The provision which gave a guarantee to the workers was enacted for the purpose of lulling the suspicions of the Opposition. The Government even then had designs on the conditions of the workers. I do not think there can now be the slightest doubt in the mind of any person as to its real purpose, namely, industrial conscription. We warn the Government that “ thus far shalt thou go, and no farther “.

Mr MENZIES:
Prime Minister · Kooyong · UAP

– I congratulate the honorable member for Dalley (Mr. Rosevear) on his extremely interesting pre-election speech. True, it had very little relation to the regulations which received formal mention in the motion moved by the honorable member. Its great value, particularly to honorable members who sit on this side of the House, and possibly also to some honorable members of the Opposition, lies in the fact that, for the first time, we have had expounded to us the policy of the new

Labour party. Like some of my colleagues, I have wondered what was the rationale on this subject of this new non-Communist Labour party and have waited until to-day to be informed of it.

The policy that we have had expounded to us is one of complete unreality in respect of the position that confronts us to-day. According to the doctrine that it preaches, there is no war that can shake Australia, and no reason for any realistic approach to any of the problems of this country. That is a completely negative and unreal policy. It is garnished with only one flavour, namely, a bitter and childish hatred of the best industrialist in Australia, Mr. Essington Lewis. I can expect to hear mention of the speech of the honorable member being made throughout Australia. Judging by the view held of Mr. Essington Lewis by this party, that gentleman does not want to employ competent munitions workers or to marshal the resources of munitions factories. Apparently, he would like Australia to be successfully invaded and defeated. If there is one man who has been responsible for industrial development and preservation in Australia, it is this great industrialist. Hatred of him is a poor foundation on which to build a policy, yet such a policy has been evolved by this group which proposes to ask the people of Australia to return it to office.

The honorable member for Dalley has argued that the regulations in question are the first instalment of industrial conscription. “ Conscription “ is a “ blessed word “ to use ; it is a great catch phrase. With commendable industry, the honorable member for Dalley goes back to regulation 59 and finds in it words which exclude industrial conscription. When he looks at regulation 12S, he does not find those words. That is true. The same may be said of national security legislation. The National Security Act of 1940 is not limited, as was the act of the previous year; on the contrary, it gives to the Government very wide powers over persons, their services and their property.

Mr Beasley:

– The honorable member for Dalley did not support that legislation.

Mr MENZIES:

– I was about to say that the Australian Labour party supported it, but at the moment I feel somewhat like a matrimonial magistrate, because when I look at honorable members opposite, I do not know whether I am attending proceedings for a separation or a divorce, or proceedings designed to lead to a reconciliation. The Labour party - I mean the Australian Labour party whose leader in this House is the honorable member for Fremantle (Mr. Curtin) - supported that legislation.

Mr Curtin:

– I am the only one here with an identity disc.

Mr MENZIES:

– Yes; the Labour party of which the honorable member is the leader in this House supported the national security legislation of 1940.

Mr Beasley:

– Some of its members did.

Mr MENZIES:

– I said that the party supported that legislation. I do not undertake to speak for the few individuals who may have separated themselves from that party. I remind the House that when that bill was being debated in this chamber the Leader of the Opposition said that he spoke for his party, and I have no doubt that he did so speak. Of course, the “ nonCommunist “ or “ anti-Communist “ - at least, the “ something to do with Communists” Labour party - voted against that bill, and to that degree its members are consistent. But at that point the honorable member for Dalley goes further, for he finds that my late lamented colleague, the former Minister for the Army (Mr. Street), said that industrial conscription, or any compulsion applied to persons employed in industry, was foreign to Australian ideas. That is true. I think the actual phrase was “ something abhorrent to Australia “. Has the honorable member for Dalley forgotten that, since that time, something more abhorrent to Australia has occurred in the world? Has he forgotten that, since then, Holland, Belgium, Denmark and Poland have been crushed, and France defeated ?

Mr Rosevear:

– And that the Broken Hill Proprietary Company Limited has showed bigger profits than before?

Mr MENZIES:

– Before he goes to the people the honorable member should consider seriously whether this overrunning of a great portion of the world by brute force is not abhorrent to the people of Australia. If he does that, he will give up talking in unreal terms. He will recognize, as the Labour party itself recognized when the bill was before the House, that in a time of emergency and danger unusual things have to be done. The honorable member was good enough to quote me. He could do no better; it is an exercise that I commend to him. But he quoted what I said when I was asked by a member of the Opposition whether I was prepared, in effect, to guarantee that there would be no impairment of standards in Australia. My reply was “ No “. No Prime Minister who was not a humbug could give such a guarantee.

Mr Rosevear:

– Hear, hear!

Mr MENZIES:

– The best Labour men with whom I have had conversation in recent months have said quite plainly that, in certain circumstances, every standard that we have may be impaired. They are concerned - and, I say, properly concerned - to see that the first sacrifice shall not be made by the people whom they represent. They claim that whatever sacrifice has to be made must be shared by all. Let us apply that principle to these regulations. I strongly advise the honorable member for Dalley to read the regulations.

Mr Rosevear:

– I have done so.

Mr MENZIES:

– It is true that the honorable member made some academic reference to them. What do these regulations do? Regulation 2 provides for the training and employment of persons for the production of munitions or supplies. The regulation reads -

  1. – (1.) If it appears to the Minister of State for Munitions that the productionof munitions of war or supplies required for the efficient prosecution of the war is likely to be seriously prejudiced by reason of a shortage of persons skilled in any particular trade, he may make such arrangements as he considers necessary for the training of a sufficient number of persons in that trade or in any branch of that trade, and for the employment of persons so trained in connexion with the production of munitions of war or supplies.

Does the honorable member for Dalley quarrel with the principle of ministerial responsibility? Does he quarrel with the idea that a Minister of State, who is responsible to this Parliament, shall be satisfied about these things? If that be his quarrel, the honorable member is worse than I thought he was, for his quarrel is with democracy. That regulation is based upon a realization of the fact, which no honorable member can challenge, that from time to time in war a nation may find itself short of skilled tradesmen of one class or another. Before that regulation was promulgated the Government conferred with the two great engineering unions, the Amalgamated Engineers Union and the Australasian Society of Engineers, which frankly recognized that some steps had to be taken to increase the number of skilled tradesmen.

Mr Rosevear:

– Does the Prime Minister say that they asked for this regulation ?

Mr Holloway:

– They did not ask for what is here.

Mr Curtin:

– Does the right honorable gentleman say that the panel discussed this regulation?

Mr MENZIES:

– This regulation arises out of the agreement between the Government and the engineering unions in respect of the dilution of labour, which was negotiated by the honorable member for Fawkner (Mr. Holt) when he was a member of the Ministry. This regulation is designed to give effect to that agreement and to other agreements of the same kind. It is a perfectly plain recognition of the realities of the war position.

Regulation 3 is probably the one to which the honorable member of Dalley particularly referred.

Mr Rosevear:

– It is.

Mr MENZIES:

– It reads-

  1. – (1.) An employer shall not engage any employee to whom this regulation applies unless he produces -

    1. a document signed by the employer by whom he was last employed stating that he has consented to the termination of that employment, or
    2. a written permit issued by the Director of Labour, Department of Munitions, or by a person authorized by him to issue such permits. (2). - This regulation shall apply to the employees specified in the First Schedule to these Regulations.
Mr Rosevear:

– The right honorable gentleman has again gone past the second regulation.

Mr MENZIES:

– I have said what I wanted to say in regard to it. The honorable member must fight this matter out with the engineering unions.

Mr Rosevear:

– No.

Mr MENZIES:

– Regulation 3 imposes restrictions upon the transfer of certain employees from one place of employment to another. To what classes of employees does it refer? The list is given in the first schedule, which I am grateful to know the honorable member for Dalley proposes to leave standing. The list is as follows: -

Electrical fitter.

Electrical mechanic.

Forger and/or faggoter.

Instrument maker.

Machinist (Engineerings - First-class).

Toolmaker

Tradesman - gun manufacture.

Tradesman - fitter and/or turner.

That is a relatively restricted class of men who are in great demand, because they are key men in the manufacture of munitions. “What is the Government to do? Is it to stand by in a time of war and say, “ We do not carewhether you stay in civil employment or not. We are quite prepared to allow employers to bid up in order to retain the services of men who are needed for the production of materials of war “ ? At such a time no Government could refuse to take power which would enable it to marshal the services of the best and most skilled men for the production of munitions.

Mr MENZIES:
UAP

– The honorable gentleman must not make the mistake of thinking that, merely because he makes a complaint, that complaint is justified.

Mr Beasley:

– It was proved.

Mr MENZIES:

– This regulation was designed to put a block on the transfer of certain men, for the reasons that I have given. When that matter came to be discussed, the question arose as to whether the Government would be entitled to penalize a man who could command a higher salary elsewhere by saying “ You must stay where you are “. That matter was discussed with at least one representative of the trade union movement who now acts as Director of Labour in the Department of Munitions. The proposal was made - and I submit that it was fair - that if restrictions were to be imposed on the movement of men from one employment to another they should be paid an adequate margin for the skill that they possess. It is wrong to say that these margins, which are set out in the second schedule, are merely those prescribed by certain awards. Reference was made to the greater margins being paid in government munitions establishments. Those greater margins were made of universal application to men engaged in this class of work. The result was that the margins of a great number of men affected by this regulation were increased. Not one man had his margin reduced. That increase was in the nature of compensation for the restriction imposed on these men by the regulation. I ask honorable members to say whether that is unjust or unreasonable in a time of war. I am discussing the case, not of people whose standard had been impaired, but of people whose standards had been increased, although they had had certain restrictions placed upon them in regard to moving from one employment to another. The view that the House and the people will take will depend entirely on whether or not they take a realist view of the war and its problems. The detached and unreal view put forward by the honorable member for Dalley, I assume on behalf of his party-

Mr Rosevear:

– The right honorable gentleman’s presumption is correct.

Mr MENZIES:

– The unreal view is to regard the war as something distant from us - a news item - and that, therefore, it is safe to play the petty game of politics as before. Those who take that unreal view can make speeches like that which the honorable member for Dalley has made to-day: they can say to the people of Australia, as he does, “ If you put me and the members of my party into office, we guarantee that no one in Australia will suffer from this war “. I am sorry, but I can give no guarantee to the people of Australia that nobody will suffer in this war. I believe that we shall all suffer, and I do not believe that the worker is any more immune from suffering than the employer, or the citizen who is neither an employer nor an employee. The real problem is a problem of being fair, and if there were ever a regulation which approached this difficult matter fairly, with proper generosity and with appreciation of what will happen to these men, this is the regulation. The honorable member reached what I might with respect treat as the pinnacle of his eloquence on the subject of how we got the trade union men on the State committees of management, and he made brief reference to an honoured trade unionist of this country, Mr. Cranwell, the president of the Amalgamated Engineering Union, a man of undoubted standing and a representative of one of the most important unions from the point of view of munitions manufacture in Australia. He has gone on to the committee. My honorable friend from Dalley says, “ Why didn’t you get the trade union movement to nominate him?” I hope the honorable gentleman, when he has leisure to sit down, will write me- a letter and tell me how one consults the trade union movement. I should like to know. But to-day the honorable gentleman says, “ You should have consulted the Australasian Council of Trade Unions “.

Mr Rosevear:

– I did not say that at all. I asked the right honorable gentleman whether he had consulted the Australasian Council of Trade Unions, the Trades and Labour Council, or any responsible union.

Mr MENZIES:

– I am sorry ; I apologize. I might have known that the honorable member would have a backway out - and he had - -because, if I had the opportunity to question him closely, I should ask, “Do you recommend the Australasian Council of Trade Unions ? “ and his answer would be “ No; some other body”. I should say, “What other body “, and his answer would be “ I do not know; any body, so long as it is a reputable body”. Who knows what it is ? I talked to the Australasian Council of Trade Unions. I should mention no names, but it is a body of reputable men with whom the Australian Workers Union will have nothing to do, in whom the engineering union does not take a great interest. The Marine Council, or is it the Maritime Council - my friend will know - has no connexion with the Australasian Council of Trade Unions.

What am I to do? Life is short. Time goes on and these problems are pressing. So we . got a man whose standing, personally, as a head of a great union, is so high that nobody, the Australasian Council of Trade Unions, the Australian Workers ‘Union, the Maritime Council, the Australian Labour party (non-Communist), or any other group professing, or calling itself a representative of, unionism, could quarrel with the choice. Does anybody, in fact, quarrel with the standing or authority of the president of the Amalgamated Engineering Union as a representative of unionism, or with the standing and authority of any of the men who are on the State committees of management? Not at all. But my friend yonder, saying to himself, “ The regulation does not matter, but the election does”, comes along and says, “You have not gone through the right channel “ ; and it is as difficult to select the right channel through which to -approach the trade union movement as it is, on any given day, to write down a list of the new groups which have formed themselves on the much-haunted flanks of the political Labour party of Australia.

Mr CURTIN:
Leader of the Opposition · Fremantle

– This is a practical problem. It is not a problem of platitudes or catch cries. It is a question as to how the Government is to give effect to the powers which it sought to enable it adequately to defend Australia. It is perfectly true that the Opposition decided that the entire resources of this nation should be at the disposal of the Government. That was a decision, not only of the party here, but also of the authoritative body of the Labour party as it exists in Australia. The Prime Minister (Mr. Menzies) welcomed that decision as a manifestation of the readiness of the responsible and authoritative people of Australia to co-operate with the Government in the face of the common danger, and he said, “ We are taking compulsive power, but the best way to exercise that power is co-operatively.” We have sought to give in respect of the defence of this country, the maximum degree of co-operation, so that there would be at least, to the citizens of this country, regardless of individual political opinions, the spectacle of the Parliament and Government doing their best to save them in the face of a dreadful situation. I shall mot debate that declaration myself. It stands. I say that the Opposition could more effectively defend this country than the Government can, having regard to the policy which it is applying. That is merely my opinion ; I allow for another opinion. But that is our positive declaration and, if we come into power to-morrow, we shall not repeal the National Security Act, because there could not be any defence for this country if it were repealed. We say that we shall operate the law cooperatively.

These regulations were gazetted by His Excellency the Governor-General, no doubt in accordance with the advice tendered to him by Ministers. Ministers said that they desired to get the maximum output of munitions and that it was desirable that there should be power to make necessary arrangements to train fitters and other tradesmen for occupations in which there was a deficiency of- skilled labour. We agreed to that. We say that it is perfectly proper that they should be trained, but we want to know what are the conditions under which they arc to be trained. There is no conflict as to the objective and purpose. Every body knows that we have to command the very considerable capacity of this country to produce means of defence. No doubt more and more workmen will be required and, inevitably, having regard to all circumstances, a greater number of persons, who are unaccustomed to work of this type, will have to be trained in order that their services may be used to reinforce the services of those already trained. The regulations say that the Minister may make arrangements for training. I agree that that should be, but not if the Minister himself makes arrangements which conflict with what I consider to be fair and reasonable, which would be a violation of industrial standards. The emergency that the right honorable the Prime Minister had in mind when he said, “ I am not able to guarantee everything in the years to come”, has not arisen. At least, up to when the regulations were gazetted there was no need, in the arranging for the training of tradesmen, to impair any of the standards customarily practised in the affected crafts. There is no indication of how conditions under which these men are to be trained will be affected.

Mr Beasley:

– That is the point made by the engineers.

Mr CURTIN:

– I know that. The regulations say that any arrangement which the Minister may make shall be lawful notwithstanding the existence of any statute, award or condition to the contrary. The regulation, I submit, gives to the Government not merely the power to carry out all of the objectives of the country, but also authority to fix conditions of training regardless of anything else. The Prime Minister very properly says that that involves ministerial responsibility. I agree, but I point out that, in spite of all the difficulties that the Prime Minister has had in the constitution of the industrial panel, this is a job which most properly is a responsibility for the panel. It is the responsibility of the panel to give advice.

Mr Menzies:

– I agree.

Mr CURTIN:

– The first meeting of the panel was held on the 9th August. The regulations were gazetted long before the Prime Minister was successful in constituting the panel, and I should have preferred that the regulations had not been gazetted until the panel had had opportunity to consider the problem of the Government in relation to the training of persons for reinforcing the existing capacity for output in Australia. I still submit that it is very desirable that the panel should look at the matter in order that the Prime Minister might have its advice.

Mr Menzies:

– I informed the panel at its first meeting that all regulations which touched employment in any way, although made in the past, would be forwarded to it, and that, if it had any suggestions to make in relation to any of them, they would be considered.

Mr CURTIN:

– I understand that that is true, because I had consultation with some members of the panel after it had its first meeting.

I say parenthetically that the Prime Minister’s difficulties in regard to the constitution of the panel are difficulties which any ‘Prime Minister would experience in Australia, because, as everybody knows, there is no complete unified organization of labour in Australia. There are all sorts and sections of unions which will affiliate with the Trades and Labour Council and others which will not. There is the Australasian Council of Trade Unions, with which some unions are affiliated and with which some trades councils are affiliated. Those unions exist in more populous States, and they may have a very large membership. This is one of the inevitable problems of organization of labour. Carlyle declared that he who would organize labour on a complete basis would achieve the most extraordinary success of any man who had ever attempted to do anything for society. The organization of labour is the supreme problem of the modern world. We have not organized labour in Australia; we have it partially organized, and within the realities of that situation we have to work.

I say to the trade union movement and to the Australasian Council of Trade Unions that with the panel now existing I am quite satisfied It is composed of men who are representative spokesmen, quite competent adequately to represent the trade union movement. I should be glad if the Australasian Council of Trade Unions as a sort of greater entity of unionism of Australia would go into the panel as it already exists.

Mr Menzies:

– Hear, hear!

Mr CURTIN:

– I say, therefore, that these regulations ought to go to the panel for immediate consideration. In the meantime, no harm will be done by disallowing the regulations.

Mr Menzies:

– Disallowance would disallow the dilution agreement already made.

Mr CURTIN:

– No; that agreement is independent of the regulations and it is an agreement which will be honoured by the trade union movement. The statutory rule is not an imperative necessity for the observance of the agreement already made. I venture to say that it will be honoured in any event. If the regulations were disallowed and the panel met, the panel could, after discussion with the Minister, indicate its view upon the matter. The Minister would then be in a position to advise the GovernorGeneral to establish the regulations in a way which would entirely meet the cooperative aspects of the Prime Minister’s proposals to Parliament as against a purely arbitrary exercise of the powers. Regulation 3 could on the face of it, be invoked to prevent any man from leaving one job to accept another. To that degree, therefore, a man may be compelled to remain in his present employment.

Mr Menzies:

– In the classes of trades mentioned.

Mr CURTIN:

– I do not agree that the regulation applies to persons other than those engaged in the occupations set out in the first schedule. The extraordinary thing is that the Australasian Council of Trade Unions was asked by me to say what it thought of the regulation and sent me a telegram asking me to support a motion of disallowance; but to-day it has sent me another stating that it does not desire the first and second schedules to be eliminated. In fact, however, to eliminate the clause complained of would leave the schedule absolutely meaningless.

Mr Beasley:

– But the men would still be covered bv awards.

Mr Menzies:

– It should be borne in mind that the subject-matter of this regulation was discussed with the unions whose members fall within the classifications of the schedule.

Mr CURTIN:

– That is true. I myself held consultations with the unions and pointed out to them that the rates of pay set out in the schedules were better in respect of the workmen concerned than the rates of pay set out in their respective awards. That should be remembered by the workers who are affected.

Mr Holloway:

– But workers of the classes specified always receive rates of pay higher than those stipulated in the awards.

Mr CURTIN:

– Quite so, but the point has been taken that the awards would be as satisfactory as the schedules. I dispute that. But for the existence of this regulation men not transferred to another employer might be compelled to remain with their existing employer under the rates of pay stipulated in their awards, and would thus get no benefit from the margins set out in this regulation.

Mr Rosevear:

– What is the difference between the rates of pay set out in the award and those set out in the regulation?

Mr CURTIN:

– That is not the point. If all the men affected could be assured of similar rates of pay and similar margins, one employer would not be able to entice men from another. Prior to the gazettal of this regulation some employers were actually enticing skilled men from other employers by offering them certain increases of pay, with the result that the organization of industry for munition-making purposes became somewhat demoralized, and certain contractors were unable to keep up deliveries. This was undoubtedly due to the fact that some of their employees were being lured away by other employers. It was because of this that the Director of Labour, Mr. J. B. Chifley, took action. He said, in effect, that the fairest thing to do was to make sure that wherever a man worked in these occupations he should receive the maximum margins, and he selected those set out in the schedule. Whatever may be said about Mr. Chifley I do not think that any one would accuse him of being a wage-reducer.

Mr Beasley:

– Oh yes he is. He favoured the Premiers plan.

Mr Rosevear:

– And he was expelled from his own union!

Mr CURTIN:

– The honorable gentlemen who have interjected are, no doubt, good at politically jibing other people. I say quite frankly that, from the point of view of securing justice for the workers of Australia, the record of Mr. Chifley will compare with that of any other man in the country. I do not desire to introduce personalities into this discussion, for it is time that we dropped all that kind of thing; I merely observe that in my opinion Mr. Chifley is not a wage-reducer.

Mr Beasley:

– He was a Premiers planner.

Mr CURTIN:

– Well, once more the family is displaying a little discord.

Having outlined the circumstances that led to the drafting of this regulation, I submit that now that the panel has been constituted, the right thing to do is to clean the slate. Let us disallow the regulation and permit the panel to give unhampered consideration to the rates of pay and the general conditions that should apply to the classes of work involved. The importance of work of the kind under discussion cannot be overemphasized. It is of major significance in relation to the capacity of Australia to produce munitions. That there must be some regulation of this class of work appears to be obvious. I know that a good deal can be said pro and con on this subject, and I resent the idea that any government should use arbitrarily, in respect of labour, its power to provide for the defence of the nation. I have accepted and still accept the view that the Prime Minister has never had any intention to do so. I do not think he has any such intention at this moment. I should be surprised to know that he had ever wished to apply his own ipse dixit to labour. He has sought consultation, and has set up the requisite machinery to obtain all advice that is available. He has drawn a very fair line between ministerial responsibility and the obligation that rests upon a Minister to satisfy himself that unfair burdens are not placed upon the people. I have supported the constitution of the trade union panel, and, now that it has been established, I urge that this regulation should be disallowed and that the panel should be asked to deal with the whole matter, in which case I should expect a regulation to be gazetted which would be satisfactory to all concerned.

Mr BEASLEY:
Leader of the Australian Labour party - nonCommunist · West Sydney

– I shall touch upon only a few points. I draw the attention of the Prime Minister (Mr. Menzies) to the fact that, although he referred in his remarks to the discussions that took place some time ago between the honorable member forFawkner (Mr. Holt), when he was Assistant Minister, and the Amalgamated Engineering Union, in relation to the dilution of labour, he did not tell the whole story. The Amalgamated Engineering Union feared the possible results of referring the subject of dilution to the Arbitration Court, for it was not pleased with the attitude that the court has previously adopted on the subject. It also feared that if it agreed to the dilution of labour by means of the adoption of the machinery of the court, it might find itself in the position in which labour organizations in Great Britain found themselves after the last war. During the last war, the engineering unions of Great Britain agreed to certain dilutions of labour on the understanding that immediately the war ended the status quo would be restored. That agreement was not honoured. I doubt whether the status quo was ever restored. Even such restorations as were made were the result of continuous agitation. Having that experience in mind, the workers of this country were not willing to take a similar risk. If the employers of Great Britain were unwilling after the last war to restore the status quo, the workers considered that it was quite on the cards that the employers of Australia would not be willing to do so after this war. For that reason, among others, the workers were not prepared to agree to the Arbitration Court dealing with the subject. An agreement was ultimately reached without the intervention of the court, but I do not think that it was an agreement to which the Amalgamated Engineering Union and the Amalgamated Society of Engineers were parties with the Government. I do not think that all the unions concerned were consulted. At any rate, many metal trades organizations were not represented at the preliminary discussions. As a matter of fact, the whole subject became a very live issue among the members of what is known as the metal trades group. The Iron Trades Union, the Moulders Union and the Electrical Trades Union were not called into the consultations, which led to the agreement being adopted. The Amalgamated Engineering Union only was responsible for whatever agreement was made, and I am informed that it was resolved that the agreement was not to form the subject-matter of a regulation at the later stage. We object to the regulation because, in our opinion, it gives the Government the power to override the agreement which it made with the Amalgamated Engineering Union, and also gives it the power to set aside the conditions that were finally endorsed by that union.

We contend that as the Government had made an agreement with the unions in respect of the classes of work referred to, there was no reason for the gazettal of the regulation. The Prime Minister simply drew a red herring across the trail when he suggested that our opposition was actuated by a desire to withhold the services of skilled men from munition-making enterprises. The fact is that the workers have freely offered their skilled services for munitionmaking services, but the Government has not as freely accepted them. Many workers qualified to engage in munitionmaking are to-day still working at other and less essential occupations. It has been said that there is a shortage of skilled labour for munition-making, but that has never been proved. We have challenged the Government again and again on the point and our challenge has not been accepted. We say that the workers have never refused any request made for their services for munitionmaking work. They are, as a matter of fact, prepared to do their utmost to ensure that Australia shall be fully prepared to defend itself. The Prime Minister will recollect that in discussing munitions production some weeks ago I referred to the transference of workers from one employer to another. I mentioned specifically the case of five fitters employed by Australian Consolidated Industries Limited who wish to offer their services to the Railways Commissioner of New South Wales for work in the manufacture of aircraft. These men were employed by Australian Consolidated Industries Limited in fitting and setting up moulds in connexion with the glass industry. This was not essential work and had nothing to do with preparations for defence. The men wished to transfer their services to the aircraft manufacturing industry but were not allowed to do so. The regulation that we are now discussing was invoked by Australian Consolidated Industries Limited to prevent their transfer to the more essential work of aircraft manufacturing, for the company refused the men the necessary permits.

Acting under instructions from the Amalgamated Engineering Union, these men stopped work, and refused to go back to the glassworks.

Mr SPEAKER:

– Two hours having elapsed since the moving of the motion, I must, under the Standing Orders, call on the Orders of the Day.

Motion (by Mr. Menzies) - by leave - agreed to -

That Standing Order No. 119 be suspended to enable the debate to be continued.

Mr BEASLEY:

– This is how the regulations apply in the case of marine engineers. When a ship is in dock for repairs, marine engineers sometimes obtain employment ashore. Some of them are now finding that, having taken work ashore, they cannot go back to their ships because their employers refuse them permission to do so. The regulations are also preventing the recruitment of young men to the marine engineering trade. It is necessary for a man to go to sea in order to obtain experience in marine engineering, but young men are being refused permits by their employers to leave their employment to join ships. Here is another instance : A fitter, with special qualifications, had applied for the position of teacher at a technical college to train men under the new labour-dilution scheme. While waiting to hear the result of this application, he took a job at Cockatoo Island dockyard. Recently, he was informed that his application was successful, and he was offered the position at the technical college, but the management of Cockatoo Island dockyard refused him a permit to leave his employment there.

Mr Mahoney:

-But surely that was on the ground that he was engaged on essential war work?

Mr BEASLEY:

– This man had special qualifications which would have enabled him to render more valuable service to his country training men at the technical college than in filing or fitting bearings at the dockyard. The management, however, finding that he was a good fitter, was too selfish to release him for the more important work. I am sure that the members of the industrial panel would not approve of this misuse of the powers conferred by the regulations.

Before issuing regulations of this kind, the Government should first of all have given proof that such extraordinary powers were necessary, but no attempt in that direction has been made, even up to the present time. I have a close knowledge of workshop practice, and am acquainted with many of the men at present engaged in industry. I know that skilled men are straining at the leash to serve their country in the manufacture of aircraft, munitions, or other war material necessary for the defence of the country. There has been no hanging back. Therefore, we object strenuously to the giving of these powers to persons and institutions which the Labour party and the trade union movement have found it necessary to fight for years past. We cannot forget what has happened. It is of no use for the Prime Minister to indulge in special pleading for the Broken Hill Proprietary Company Limited, or for Mr. Essington Lewis. Experience has shown that the patriotism of many persons engaged in big business and financial undertakings is measured, not necessarily by their love of country, but by the profits they can make. The Labour movement has had to fight the Broken Hill Proprietary Company Limited before, and Mr. Essington Lewis is the key man in the Broken Hill Proprietary Company Limited. The prosperity of this firm has been built up, to a great degree, on the protection given to it by Parliament, yet it is always trying, now that it has captured the market in Australia, to depress wage standards and conditions of employment. We have no confidence in many of these people, and we resent their enjoying such extraordinary powers.

I am aware that the awards of the Arbitration Court do not provide, in all cases, for the full margins recognized in the various industries.For instance, I know that the Amalgamated Engineering Union works under an agreement in connexion with the munitions plants at Maribyrnong which is something apart from its general award. Is is only right, therefore, that the agreement should stand, even though the rates contained therein are higher than those provided in the award.

Mr Brennan:

– It is an agreement, anyway, it is not conscription.

Mr BEASLEY:

– That is so. This has particular application to munitions workers at Maribyrnong. This factory has been in operation for a number of years, and the union has been able to enter into agreements with the management providing for matters not necessarily enumerated in the award. There is also the question of the value of a man’s skill under a particular set of conditions. We take the view that no restriction should be placed upon a man possessing special qualifications in his efforts to secure the full margin agreed upon in respect of those qualifications. It cannot be argued that the workers of Australia have refused to offer their services for necessary war work. As a matter of fact, thousands who have offered their services have not yet been called upon. In spite of that, however, the Government has taken these drastic powers, and we fear that even more onerous conditions will be imposed later.

It is cheap for the Prime Minister to suggest that the workers do not realize the seriousness of the situation at the present time. They realize it all too well. Many of them, indeed, are of the opinion that the Government has not realized it to the degree that it should, as otherwise our defence preparations would not have been so lamentably backward. It has been suggested that we are talking to the electors. Well, I trust that we shall be able to convince the electors that we are right. The workers of Australia will not be found wanting when every ounce of energy is wanted, whether in the workshops or on the battlefield in the defence of this country.

Mr BLACKBURN:
Bourke

.- I support the motion moved by the honorable member for Dalley (Mr. Rosevear). To-day we are seeing this system of government by regulation working at its best. These regulations were made six weeks ago, and now we have an opportunity to discuss them, and to reject them if we see fit; but it is quite possible for regulations to be issued just after the prorogation of Parliament, so that an opportunity to review them might not present itself for six months, or even longer.

I was one of those who voted against the National Security Bill, and I make no apology for my action, because that was intended to give to the Government of the day, without consulting Parliament, power to control the working conditions of the workers, and to break down their standards. I felt strongly on the matter because, at a conference of representatives from all parts of Australia, which sat only the day before, it had been declared that one of the planks of the Labour party’s defence policy should be “full recognition of trade unionism, and the safeguarding of industrial standards “. Knowing what had happened in this country, and in England, I was convinced that these powers would be used to break down industrial standards. The portion of the regulations to which I take the greatest objection is that which prevents a worker from freely changing his employment. When the Supply and Development Bill was under discussion honorable members on this side of the House were successful in having inserted in it a provision that no regulation made under the act should fetter the freedom of movement of workers. Honorable members on this side of the House were very concerned that nothing should be done to interfere with the freedom of workers because of the English experience of similar legislation. In Great Britain at the commencement of the last war not merely did the Political Labour party make a truce with the Government but also the Trade Union Congress entered into a Treasury Agreement by which it consented to a suspension of trade union rules and agreed that there should be no strikes and that all matters in dispute should be submitted to arbitration. Taking advantage of the Treasury Agreement and the acquuiescence of the Trade Union Conference, an act was passed in 1915 entitled the Munitions Act which contained a “ notorious section “ establishing leaving certificates which is the basis of these regulations. That section provided that no worker employed on munitions could change his job, nor any employer give him a job, unless he possessed a certificate from the employer by whom he was last employed that he left work with the consent of his employer, or else a certificate from the Munitions Tribunal that the consent had been unreasonably withheld. According to Maurice Dobb from whose pamphlet Trade Union Experience and Policy 1914-1918 I am quoting, the system of certificates aroused more opposition among the trade union rank and file than perhaps any other single measure brought down during the war years. Dobb says -

The report of the Commissioner for the North Eastern area to the official Committee of Inquiry into Industrial Unrest declared it to he “ one of the most fruitful causes of discontent”. This report proceeded to quote complaints that workers resented being tied to a job and “ as they sometimes put it, virtually in a state of slavery “.

The result of the recommendations of that committee was that the act was amended. Certain modifications were introduced and, although even these were not satisfactory, they have not been introduced here. It was made obligatory for an employer to give a certificate to any worker discharged by him, provided the worker was not guilty of misconduct for the purpose of obtaining discharge, or to any worker who left because he had a justifiable complaint against the conduct of his employer or foreman. If an employer refused to issue the certificate an employee could appeal to the Munitions Tribunal. Notwithstanding that, however, the trade union opposition to the act went on and, although the Trade Union Congress had entered into an agreement that there should be no strikes during the war, unofficial strikes broke out and an entirely unofficial body, known as the shop stewards organization, was set up to provide the strikers with leadership that they did not otherwise have. All of the men affected were liable at any time to be called up for military service abroad. The strikers included women and men whose husbands and sons were fighting but who felt that a great deal was at stake in preserving conditions which had been laboriously built up in a century of trade union organization. They felt that the trade union is more than the agent of those who are now its members. It is the trustee of posterity - the guardian of the interests of that everchanging body of workers that constitute the trade. They felt that they were asked to consent to conditions being broken down not merely for themselves but also for the generations of the future. I think that no more dangerous form of industrial conscription could be introduced into this country than that which provides that workers shall not be free to change their employment without the consent of the Director of Labour. It is useless to talk about the competence of the present Director of Labour; he is a candidate for election to this Parliament and may not occupy his position after the coming elections. Are we to commit ourselves to any Director of Labour? We are told to put absolute powers into the hands of a dictator because he is a good man and will not abuse them; we want the protection of the law and not the goodwill of any person invested with arbitrary power.

I object to the provision in regulation 4 that an employee cannot be paid more than a certain wage. It is all very well to say that the scheduled wage is higher than the present wage rate; but no one can tell whether it will be the proper rate for next year or the year after. I know that this regulation is designed to prevent an employee leaving his employment but I submit that it is only another phase of what we regard as industrial conscription. When the National Security Bill was under discussion I suggested that the Government could get all it wanted by agreement and consultation with the men affected and not by coercion. In spite of that the Government was prepared to take the short cut of coercion and say “ If you do not agree to the things we ask you to agree to, we have the power to compel you That is the position to-day. I believe that the Government is not anxious to do tyrannous things, but it is now in a position to go to employees and say “If you agree to these terms we propose, well and good; if you do not, we are able to impose them on you by law.” That is industrial conscription and I oppose these regulations as the first instalment of it.

Mr BRENNAN:
Batman

.- The Prime Minister (Mr. Menzies) in replying to the motion for the disallowance of these regulations treated us to a fair measure of electioneering eyewash which one might have thought we would have been spared in the light of the fact that it was, from that point of view, a mere repetition of a move discredited and found unsuccessful in the recent byelection for Corio. I hope that I shall not be justly accused of undue reverence for precedent or of slavish adherence to the virtue of consistency, but with due respect for precedent on the one hand and for consistency on the other I feel that I must of necessity support the motion moved by the honorable member for Dalley (Mr. Rosevear). There is a well-known principle of law that a man is assumed to intend the natural and probable consequences of his own acts. When I voted against the National Security Bill I voted in contemplation of such a consequence flowing from the passage of that bill into an act as has in fact now appeared in concrete form in these very regulations which are under discussion. It is true that industrial conscription as we understand it, and as it has been so well explained by the honorable member for Bourke (Mr. Blackburn), was expressly excluded from, that act ; but it is equally true that the original act went so far and was so dangerously an approximation to industrial conscription that members of the Labour party foresaw the very great danger of accepting the measure and voted against it. I must confess that the amending National Security Bill later introduced occasioned me no surprise because it seemed to me that it was, as I have already said, one of the ultimate consequences which were likely to flow from the original measure. Consistently with my vote against the original bill my vote went against the amending bill which removed one of what some people thought were the safeguards implicit in the original bill. Now, we find that this industrial conscription, which was threatened in the original measure and approved by the amending measure, is finally being given effect in these regulations, as the Leader of the Opposition (Mr. Curtin) says “ in practical form “. I realize, of course, having regard to the tremendously wide powers of the original bill and its amendment, something of this kind may be adopted again by regulation. When you hand over to an executive government absolute powers you can never by anything done in the House be immune from grave social danger. All that a member of this House can do is to record a vote and state as best he can his reasons for it. I do it at this time in these few words. I am happy to find that the speeches I have made on this subject from the beginning and through the various stages through which consequential legislation has passed, by regulation or otherwise, my original views and succeeding votes, have been entirely justified by events. Therefore I have much pleasure now in supporting by my vote the motion moved by the honorable member for Dalley.

Mr MAHONEY:
Denison

.- I have followed this debate with considerable interest, and have come to the conclusion that the power given to the Government is likely to be used to the detriment of the working class of this country. The practice of profiteering in the production of munitions of war is the basic cause of all the trouble with which we are confronted. It appears to me that the purpose of regulation 3 is to prevent an employer from using racketeering methods in order to secure the services of men who are engaged in the production of munitions in workshops under the partial control of the Government, in order to make enormous profits out of a commodity that is not necessarily required for defence purposes. According to the honorable member for West Sydney (Mr. Beasley), men cannot be transferred to occupations in which they would be more suitably and valuably employed. That point should be stressed. No man should be taken from an industry in which he is most valuable, and employed in another merely in order that tremendous profits might be made. Labour must, be empowered to exercise a certain degree of control in industry. It has been suggested by previous speakers that I voted for industrial conscription. I give that an emphatic denial. I believe in the workers being given high standards. At no time would I be prepared to assent to their being lowered. I have been just as sincere in my attitude as have other members who claim to be the only “ lily-whites “ in the Labour movement. I do not suggest that it is impossible for me to make a mistake, but I should not wish to hold my seat if the effect of any act of mine was to reduce the standards of the workers. The practice of profiteering in the production of munitions will continue to be the direct cause of all of our troubles unless the Government takes complete control of production, and allows no profits to be made. The honorable member for Bourke (Mr. Blackburn) is in favour of the payment of certain highly-skilled men at a higher rate than applies generally. In my industrial activities and my association with the trade union movement, I have always found that employers are not philanthropists. If they pay a higher rate to any employee, the object is to use him for speeding-up purposes. The mau who accepts a higher rate has no other purpose than to set a rapid pace, which his fellow workers also have to maintain. The slower men are just as important to industry as those who speed up operations. Speeding should not be tolerated or encouraged. Any scheme having for its object the placing of men where they are most valuable should be evolved by representatives of the employers and employees in co-operation. No man should be transferred from one position to another except with the approval of the trade union representatives. Action of this kind should not be taken at the behest of a Minister, or with the sanction of an employer. The workers should have representation on the industrial panel, in order that they may be kept informed of any move likely to be detrimental to them. I have been twitted by “ lily- whites “, who may shortly be criticizing me in their electorates. I have no wish to score off any of my mates. I stand for good wages and conditions, but am not in favour of the speeding-up system. I recognize as clearly as does the Prime Minister (Mr. Menzies) that if the Nazis win the war, all of the conditions of the workers of this country will go by the board, as they have in Prance, where the trade union movement has been abolished. There are in Australia big industrialists who are prepared to exploit the Nazi system in order to destroy the trade union movement, and they are supporters of the present Government. If, by disunity in the ranks of the representatives of the workers, the Government is enabled to win the next elections, what will happen to the workers? We must have a united front, with a common cause ; otherwise we may be defeated, and the workers will have industrial conscription imposed on them. I have never been a party to dividing the forces of Labour, either politically or industrially. My leader has suggested that these regulations should be withdrawn and that the matter should be submitted to the industrial panel, so that the trade unions may be given an opportunity to decide what is the proper course to take. Unless the trade union movement is permitted to have a voice in the drafting of regulations affecting the workers, we shall never have co-operation or the highest degree of efficiency. If certain men now employed in different branches of industry would achieve better results if engaged in the training of youths in industrial schools, they should be given that occupation, and the big employers should not be allowed to exploit their skill. Let us take highlyskilled men from industry and place them in the technical schools. If these regulations have had the effect of reducing efficiency, they should be withdrawn and redrafted with the co-operation of the trade unions. When the Opposition supported the Government in its national security legislation, it did not contemplate the enslavement of the workers by imposing on them industrial conscription. If the Government wishes the worker to put forward his best effort, it should not pass legislation the effect of which is to reduce his standards, but rather should endeavour to raise his standards.

Mr SHEEHAN:
Cook

– I rise to support the motion for the disallowance of certain regulations under the National Security Act which has been moved by the honorable member for Dalley (Mr. Rosevear). I regret that the Prime Minister should have said that members of the party to which I belong are not realists, in that we fail to recognize the seriousness of the present war situation. Members of this party are fully aware of the happenings overseas, but we claim that if industrial conscription was not necessary when the regulations were issued on the 24th May last after Poland, Finland, Czechoslovakia and other countries had been over-run by the German hordes, it was not necessary when further regulations were issued on the 21st June. Nevertheless the clause which prohibited industrial conscription was excluded on that occasion. Members of my party see in any departure from that exclusion a grave danger to the community. It is true to say that these regulations came as a great shock to the workers of Australia. Thousands of loyal men are waiting to do a job on behalf of the nation, but their services are not being utilized. In the Cook electorate alone thousands of men are out of work. In such circumstances, I cannot see any need for industrial conscription, or for vesting in the Government the power to set aside industrial awards and disregard the legislation providing for arbitration and conciliation. The regulations which are now under consideration have been in operation since the 5th July, as a number of men at Lithgow are only too well aware. Under these regulations they have been forced to remain at Lithgow where they are separated from their wives and families. When they endeavoured to obtain employment near to their homes because they could not get housing accommodation at Lithgow, they found that they had left their employment at Lithgow a day too late as these regulations were then in operation. Now, these men cannot obtain employment in any other munitions establishment unless they first resume their employment at Lithgow and obtain permission to leave it.

Mr Drakeford:

– They are blacklisted.

Mr SHEEHAN:

– The fact that so many men who are anxious to find employment in the manufacture of munitions are out of work indicates that Mr. Essington Lewis, in whom the Government has such great faith, is not the wonderful organizer that it would have us believe. Some time ago, in reply to a question, I was told that the shortage of steel bars was due to import difficulties. This shortage has caused the dismissal of many men from the Cockatoo Island Dockyard, Mort’s Dock, Garden Island, and elsewhere. Only last week, 800 men were put off from Lysaght’s works because of the shortage of steel bars. We have been at war for nearly twelve months, and yet an essential requirement for the manufacture of munitions is nol available. The man who should be taken to task for this unsatisfactory state of affairs is one in whom the Government has great confidence. Mr. Essington Lewis should be called upon to show why the country is in such a precarious position, and why men who could be employed in the making of munitions are still out of work. Some time ago I was asked to address 120 men in my electorate who informed me that .notices had been posted in their places of employment that they could not leave their present jobs without the permission of their employers. They claimed that they were not doing essential defence work, and asked that they be employed in the manufacture of munitions. When I addressed these employees of the British Standard Machinery Company at Alexandria during their luncheon adjournment, I told them that regulations under the National Security Act definitely imposed industrial economic conscription on them and that they had to remain in their present employment until given permission to leave it. I do not say that they are engaged in the making of luxuries, but I do say that some of the work that they are doing is not essential, and that these skilled men could be better utilized in making munitions. Some time ago, a number of marine engineers undertook temporary work in a factory at Alexandria while waiting for their ship to go to sea. Later, when they wished to rejoin the mercantile marine, they were told that they could not leave their employment on land, notwithstanding that they were paid at rates less than they would have received at sea. It has been said that the margin over the basic wage will compensate skilled men for being kept in certain employment. In this connexion, it is interesting to note that the Broken Hill Proprietary Company Limited, which had an application before the court for the cancellation of overtime payment for Sunday work, withdrew its application when regulations under the National Security Act were issued. The company knew that under these regulations it would have to pay only ordinary rates for Sunday work and overtime. I join with my colleagues in protesting against these regulations, which are unnecessary and unjust. There is a possibility that, under them, the Government will take unfair advantage of youths who leave school at about fourteen years of age. The people of Australia were prepared to engage in home defence under the Defence Act, but only men between the ages of 18 and 60 years were covered by that legislation. Now, however, every person in the community comes under these regulations. A father may wish that his son, instead of leaving school at the age of fourteen, shall receive a higher education, but the Government will have the power to prevent it. It is not right that the employers should have such power over the workers in industry, and I hope that the motion will be carried.

Mr LANE:
Barton

.- Any one who has listened to the debate will realize that there is a great diversity of opinion regarding the operation of these regulations. Honorable members know that the emergency legislation under which they are issued caused a split in the ranks of the parties opposite and led to the creation of the non-Communist section of the Labour party. The opposition to these regulations is purely political. It is claimed by those who oppose them that the Government is not to be trusted to conserve the interests of the workers of Australia. I submit that no political party has a better record than has the United Australia party. Under its administration, the country has made great progress, employment has increased, and the nation as a whole has become more prosperous. The only safe party to control the nation in a time of war is the United Australia party.

Mr James:

– Is that statement not a reflection on the Country party?

Mr LANE:

– It was meant to be a reflection on the two or three parties opposite. I cannot imagine any one advocating that the power to control industry, particularly in a time of war, should be vested in the Labour movement. This move to have these regulations disallowed shows how badly the trade unionists are represented in this Parliament. The Leader of the Opposition (Mr. Curtin) admitted that the principal trade unions of Australia had been consulted by the Prime Minister before these regulations were gazetted and then he said that yesterday he had received a telegram from one union instructing him to vote for the disallowance of the regulations and that to-day he had received another telegram to this effect, “ Whatever you do, don’t vote for the omission of the schedules “. The honorable member did not know where he stood. Apparently within 24 hours and after some further study that union had found some good in the regulations.

Mr Rosevear:

– There is no reference in the motion to the schedules.

Mr LANE:

– No, but the honorable member knows that if the regulations are disallowed, the schedules become null and void. The honorable member for Bourke (Mr. Blackburn) gave the history of the growth of trade unionism in Great Britain since 1915. It was pitiable to hear the honorable member hark back to Great Britain for examples. Has the trade union movement in Australia no history? The honorable member should not use Great Britain as an example in order to show what may happen in Australia, Decause there is a vast difference between organized labour in Great Britain and organized labour in Australia. The honorable member declared that, because there was difficulty, after the last war, in re-adjusting certain things that had been allowed by the workers in Great Britain, there would be the same difficulty in re-adjusting affairs in Australia after this war. Whatever else there is about this country, it has a culture of its own, industrially and in every other direction. The trade union movement of Australia has thrived, largely because the United Australia party has always believed that trade unions are essential for the well-being of the workers.

Mr Conelan:

– Does the honorable member believe in preference to unionists ?

Mr LANE:

– I have always believed in preference to unionists, because I have always believed that unionism is the backbone of labour. I believe also that these regulations are accepted by 95 per cent, of trade unionists, because unionists have sufficient faith in the Government to know that it will do nothing to impair the efficiency of the Australian trade union movement. The honorable member for Denison (Mr. Mahoney) clashed with the “ non-Communists “, who accuse him of being a traitor to trade unionism because he voted against them for the national security legislation. The honorable member was astray, but he gave a good illustration when he said that employers offered higher wages to induce men to join their staffs only because they want I beni, as pacemakers for other employees.

Mr Rosevear:

– Does the honorable member think that every man who is paid more than the award is a speeder-up ?

Mr LANE:

– No, but the honorable member for Denison does. Here we have two strong Labour men, one saying one thing and another the opposite. I ask the honorable member for Denison to believe that the Government is honorable. Some honorable members opposite claimed at the outset that we were out to conscript men for overseas service, but they lost on that. Now they are placarding the country with charges that the Government’s policy is industrial conscription.

Mr Rosevear:

– The Prime Minister admitted that it was to-day.

Mr LANE:

– No; that will never be admitted. We are not seeking industrial conscription, and the honorable member knows it, but he realizes that the charge is a good election cry. He knows that the only reason for his motion to-day is the opportunity that it provides to strike a blow at the other brand of Labour that he has left. The members of the Australian Labour party - non-Communist have continually chid the Opposition for supporting the Government in its war efforts. We are engaged in a life and death struggle, yet the honorable member for Dalley and his colleagues are prepared to trail their political views through this House in order either to brand other honorable men on their side as deceitful and false to trade unionism, or to make the charge that we on this side are only sponsors of the employing class.

Mr Rosevear:

– We should be right in that.

Mr LANE:

– No; we believe that the employers and the employees are essential to each other for the good government and the maintenance of happy family life in this community. Employers are not anathema to this country. Mainly, they have climbed from the bottom to the top of the ladder by virtue of their energy and ability to organize skill and lead other men. 1 have yet to learn that men who are earning in some industries an average of £4 10s. a week feel that they are suffering any injustice. I am one who would support the honorable member for Dalley immediately if I thought that in these regulations there was any danger to the working classes, but I know that 95 per cent, of the workers are true BritishAustralians and do not resent one word of these regulations. Why, the advancing Germans are abolishing trade unionism in every country which falls beneath their onslaught!

Mr Rosevear:

– The honorable member would have us beat the Germans to it and wipe out trade unionism here.

Mr LANE:

– No. The honorable member and his colleagues should show loyalty to the great Labour movement by helping to win this war and refrain from efforts to make party political capital out of actions which the Government takes iri order . to ensure that its war effort will be unimpaired.

Mr SPEAKER:

– Order ! The honorable member must discuss the motion.

Mr LANE:

– It is false to say that these regulations mean the conscription of industry. They have been gazetted merely because the Government must have latitude to meet any emergency that may arise. If honorable members opposite ask the House to disallow these regulations, I have the right to put the other side and to say that their motive is not to help the trade union movement and to preserve its integrity and honour, but rather to destroy political machinery to which they are opposed. If these regulations are disallowed, 95 per cent, of the unionists will be disappointed that the Government has not firmly held to its right to rule and to ensure that we shall play our part alongside Great Britain. The honorable member for Dalley and the honorable member for Fremantle, make a great mistake when they say, “ Disallow these regulations “. The only purpose of the regulations is to weld together the industry of this great country. “We are told that this war will be won in the workshops, and the purpose of these regulations is to see that our workshops continue uninterruptedly in production. I am sorry that this motion has been moved and I am convinced that, before the House will agree to it, much better reasons than have been given will have to be advanced.

Sitting suspended from 6.15 till 8 p.m.

Mr HOLLOWAY:
Melbourne Ports

.- Trouble of the kind that has arisen over these regulations, which is deplored by us, was predicted twelve months ago as likely to occur. When the Government decided to allow private enterprise to engage in the manufacture of munitions we said that if cut-throat competition occurred difficulties would undoubtedly be encountered over wages and working conditions. That is exactly what has come about. Strange as it may seem, the trouble is limited to the 20 per cent, of the work that is being done in private manufacturing establishments. About 80 per cent, of our munitions is being manufactured in Government establishments, and in these no trouble has occurred.

Mr Anthony:

– If the honorable member had had hia way, we would have had very little in the way of munitions.

Mr HOLLOWAY:

– My reply to the honorable member is that not only is 80 per cent, of the work being done in Government establishments, but also the work is of better quality and the output of greater volume than that which marks the activities of private establishments. Had all of our munitions manufacturing been done in Government establishments, we should have been much better off to-day than we are.

Mr Nairn:

– Some of the Government workshops are “ duds “.

Mr HOLLOWAY:

– A few days ago I heard the honorable member complimenting the officers of some Government workshops on the efficiency of their establishments. It is right that we should acknowledge merit where we find it. Better work is also being turned out of the Government workshops of Great Britain than out of the private workshops there. Work has had to be taken away from some private contractors in Great Britain because of their inability to make deliveries within the contract time. Tb.B fact is that some of those contractors accepted orders simply to keep them out of the hands of their competitors. That sort of thing is happening^ on a smaller scale, in Australia. Munition-making, as everybody knows, is a profitable business and some organizations in Australia are afraid that orders will go to their competitors.

Mr Anthony:

– The private establishments are generally efficient.

Mr HOLLOWAY:

– If the Government had spent on the extension of Government workshops the £50,000,000 which it made available for the provision of annexes to private manufacturing establishments, our situation would be far better to-day than it is. We are in trouble over this regulation because the Government has permitted private enterprise to manufacture munitions of war for profit.

The Government acted unwisely or else it has not played the game in connexion with this regulation, as a review of the situation in respect of our national security measures will clearly show. When the first National Security Bill was introduced a protracted debate occurred because the Labour party contended that the interests of the workers had not been safeguarded. Ultimately* after conferences with representative leaders, the Government agreed to insert a provision which we felt would protect the interests of employees. Although it was said by Government spokesmen at that time that it was not intended to interfere with working conditions, or to reduce wages, we feared that action of that kind would be taken unless proper safeguards were enacted. The second National Security Bill was introduced, in my opinion, for the sole purpose of removing the safeguard that had been included in the first measure. Under the present National Security Act the Government ha3 absolute power. We were again told when that second bill was before Parliament that it was not intended to interfere with the working conditions or to reduce wages. It was also said that the power sought would not be used to introduce new practices into industry, such as the dilution’ of labour and the use of ‘ semi-skilled work in skilled operations, unless such action had previously received the approval of the trade unions concerned. After the passing of the measure, various advisory panels and numerous boards and committees of one kind and another were appointed. The workers have played the game in every respect in all these matters, and have appointed their representatives as desired by the Government. That being so, it is to be deplored that this regulation should have been issued without the approval of the Trade Union Advisory Panel.

We have been told that the regulation simply gives effect to an agreement already reached with the Amalgamated Engineering Union concerning the dilution of labour. Unfortunately, however, there has been sandwiched into the regulation a provision which has never been discussed with the workers concerned, and for that reason we object strongly to the Government’s action. I refer, of course, -to regulation 3, which relates to the mobility of labour. It has been a fundamental principle of the working class movement throughout its history that the workers shall be allowed to sell their labour where they please and for what they can get for it.

Mr Rankin:

– That is not so in Germany.

Mr HOLLOWAY:

– And we are fighting Germany on that account I We wish to maintain this fundamental right. Regulation 3 is undoubtedly intended to prevent workers from transferring their services from one shop to another. The intention of the Government, it ‘ has been said, ‘ is to prevent employers from taking advantage of the workers, but we cannot accept that view. The regulation has not been introduced because of any fear of that description. Hitherto Government supporters, who look to the employers of labour for financial assistance, have always argued that these friends of theirs are patriotic and fairminded, and are willing to assist the country in its war effort without consideration of profit. We know very well that in the last few months the largest groups of employers of this country have been granted financial assistance by the Government in order to establish annexes for the manufacture of munitions. It is now being said that this regulation must be applied to such employers in order to prevent them from exploiting the Government. Our view is that the regulation has an entirely different purpose. We are all well aware that, although certain rates of pay may be agreed upon between representatives of employers and employees at roundtable conferences, or may be awarded by various industrial tribunals as fair and reasonable, some men invariably earn extra money by reason of their special skill.

Mr Rosevear:

– And not necessarily by “speeding up”.

Mr HOLLOWAY:

– Quite so. We all know that especially efficient men may earn from 10s. to 12s. a week more than their companions in the same industry. The rates of pay fixed by the various tribunals are intended to provide for the average workman. I can see in this regulation a desire to fix an absolute maximum rate of pay beyond which a man may not earn anything, whatever be his skill. Moreover, advantage will be taken of this regulation to prevent these especially skilled men from offering their services to other employers with the object of earning a little more than the normal rates. This being the case, I feel that the right thing to do now is for us to disallow these regulations so that the whole matter may be referred to the Trade Union Advisory Panel for consideration. Had the Government acted wisely it would have referred the draft regulations to that body before their gazettal. The secretary of the Trade Union Advisory Panel and also the representatives of the Amalgamated Engineering Union who are members of it are expected to arrive in Canberra towards the end of this week to discuss with the Government certain matters relating to the intensive training of artisans and also the dilution of labour. Surely the regulations could be held in suspense until after they have been discussed by these men who will be so vitally affected by it. Unless action of this kind is taken I fear that the harmony hitherto existing between the Government and the workersin relation to war work may be destroyed. That is the last thing that we should permit to happen. Any such discord could be avoided if the Government would agree to allow this matter to remain in suspense until after it has been discussed by the Trade Union Advisory Panel. Unless the Government is willing to follow this course, I shall be obliged to vote for the disallowance of these regulations.

Mr ARCHIE CAMERON:
BARKER, SOUTH AUSTRALIA · CP; LP from 1944; LCL from 1951; LP from 1954

– Will the honorable member “ let down “ his friends in the Senate?

Mr HOLLOWAY:
MELBOURNE, VICTORIA · FLP; ALP from 1936

– Not at all.

Mr Archie Cameron:

– It appears as though the Labour party is speaking with two voices.

Mr Harrison:

– Or else honorable gentlemen opposite do not know much about the subject!

Mr HOLLOWAY:

– We have not voted on it yet.

Mr Archie Cameron:

– So there is still time for honorable gentlemen to change their minds.

Mr HOLLOWAY:

– It appears to me that the supporters of the Government are not prepared to argue the case on its merits. If they cannot do so, I suggest that they should not waste their breath talking about something that has nothing to do with the subject.

Mr Archie Cameron:

– It is votes that count.

Mr HOLLOWAY:

– The honorable gentleman is now introducing an element of discord. I suggest that because regulation 3 was introduced into the regulations without discussion with the panel, these regulations should be withdrawn altogether. I propose to vote in favour of the motion, and to take no risks.

Mr DRAKEFORD:
Maribyrnong

– The Leader of the Opposition (Mr. Curtin) has put the matter clearly on behalf of the Opposition. These regulations must be withdrawn and redrafted, so as to remove all possible cause for objection. I believe that, if the matter were referred to a properly constituted industrial panel for consideration, proposals could be evolved which would satisfy everyone. The regulations would then work without friction, and that is what we all want. When the honorable member for Melbourne Ports (Mr. Holloway) said that he proposed to vote against the regulations, he made it clear that, in doing so, he had no wish to hamper or delay the nation’s war effort. That applies to all of us, and I suggest that the Government, having heard the opinions and arguments of members of the Opposition on this matter, should now withdraw the regulations. The Government will admit that honorable members on this side of the House represent practically all the trade unionists of Australia, to whom we must look for the production of munitions of war. The honorable member for Bourke (Mr. Blackburn) and the honorable member for Batman (Mr. Brennan) have put the position clearly from the legal point of view, and have shown how the regulations can and do operate to the detriment of men engaged in the production of munitions. As an example, in Victoria there is, according to reports, great dissatisfaction among the men employed in the Newport workshops, because of the manner in which the regulations are being applied. Certain men have been allowed to transfer to the munitions annexe at increased wages, while others, just as competent, and engaged on the same kind of work, are refused permission. They are asking that this anomaly be removed.

Criticism was offered here to-day against the Director of Labour, Mr. J. B. Chifley. I have been in close touch with the secretary of the Munitions Workers Union, who has assured me that, whenever representations have been made to Mr. Chifley, the unions have been given prompt consideration and satisfaction.

Mr Rosevear:

– I merely said that, on one occasion, he stood for a reduction of wages, and that is true.

Mr DRAKEFORD:

– On that occasion he was merely applying as a Minister the policy of the Government of the day, and I do not think that any reflection could fairly be cast upon him on that account. His- work as a member of the Royal Commission on Banking reflected credit upon himself, and upon the Labour party, of which he was a member. His activities as Director of Labour cannot be challenged. I am convinced that if he is given an opportunity to administer the regulations, as we desire to have them altered, he will do an excellent job both for the men and for the Government.

The men in the Newport workshops have a legitimate cause for complaint. Certain men who wish to transfer to munitions work are refused permission, while others, junior to them, are allowed to go and earn more money on the munitions side. The honorable member for Richmond (Mr. Anthony) asked by interjection whether we were prepared to close down private workshops engaged on munitions work. My reply is that the Opposition would have the Government take control of all munitions factories throughout Australia so that there would be no exploitation of the public under war conditions. When this work is handed over to private interests, trouble always occurs. I was recently informed by a manufacturer that he was asked to quote a price for the manufacture of certain war materials. After he had stated a price, he was asked whether he was prepared to do the job at 5 per cent, on cost. He agreed to do so, but he was not given the job. Some time later, however, he was rung up by another company, which I understand is a subsidiary of Broken Hill Proprietary Company Limited, and asked whether he would do the work for that company at 5 per cent, on cost. I have not gone into the matter extensively, but, on the face of it, it would appear that there was to be a percentage of profit for the Broken Hill Proprietary Company Limited subsidiary, as well as a profit for the actual manufacturer. I asked a question in the House on this matter, but though there has been plenty of time in which to prepare a reply, no reply has been forthcoming. I believe that there should be an investigation into the methods employed in the manufacture of munitions. There should not be more than nominal profit-making On munitions, let alone excessive profits.

Mr Collins:

– Yet you say that skilled men should receive extra pay.

Mr DRAKEFORD:

– I say that they should receive what is stipulated in the award or agreement which determines their rates of pay. I would have no objection to regulations providing for that, but it is wrong to prevent a man from transferring from one job to another for which he is better qualified.

Mr Rosevear:

– But does the honorable member suggest that the prescribed minimum, wage should become the maximum wage?

Mr DRAKEFORD:

– No; but I say that the conditions prescribed by the award or agreement should be those which apply, and I say further that no one man should be prevented from going to a better paid job while a junior or less qualified man is allowed to do so.

Mr Nairn:

– The honorable member means that if the worker is able to sell his labour at inflated war-time prices, he should not be prevented?

Mr DRAKEFORD:

– The honorable member’s argument supplies its own answer. No question of that kind would arise if all munitions factories were controlled by the Government, as the Labour party suggests. The Prime Minister (Mr. Menzies) said that it was difficult to find out who really did represent the unions. I remind the Prime Minister that he also had difficulty, apparently, in finding out who represented the motorists and the motor trade, when plans were being discussed for imposing restrictions on the consumption of petrol. A rationing scheme was evolved which was not acceptable, but when a more representative committee was appointed, a scheme was devised which has met, more or less, with the approval of all sections concerned. No one can deny that the Australasian Council of Trade Unions is one of the most representative Labour bodies in Australia. It was suggested on this side of the House that the Australasian Council of Trade Unions should have been consulted regarding the formation of this industrial panel, but even those who put that proposal forward advocated that persons outside the Australasian Council of Trade Unions should also have been on the panel. I am not saying anything against those who are on the panel. Some of them are known personally to me, and I know that they are well qualified and are anxious to do a good job; but I believe that if the view of the central body had been accepted, a more representative panel could have been appointed. The Government should endeavour to secure the co-operation of the workers, and to that end it should withdraw these regulations, and substitute others - after reconsideration by its representatives and those of the workers - that will give satisfaction to every one.

Mr ROSEVEAR:
Dalley

.- in reply - I regret that the Prime Minister (Mr. Menzies) devoted so much of his time to the discussion of matters that had nothing to do with the points which I raised when moving my motion. He employed a good deal of flowery and flippant language in the course of what was obviously an electioneering appeal. He charged my party with taking an unreal view of the war situation. Let me assure the Prime Minister, and the members of his party,, that we take just as real a view of the situation as does the Government, the difference between us being as to how Australia’s best effort should be made in defence of democratic institutions. In this respect, we are not satisfied that the Government has done the best job possible. As a matter of fact, our party can take credit to itself for being largely responsible for exposing the unsatisfactory position in regard to munitions annexes, which had resulted in leaving Australia virtually unprotected. If that is not taking a realistic view of the situation, I do not know what is. I desire further to inform the Prime Minister, and the members of his party, that they have no monopoly of patriotism in this House or in the country, nor do the people of Australia believe that the Government parties are alone capable of taking a realistic view of the situation. That was demonstrated clearly in the recent Corio by-election, and in the State by-election for Tamworth, in which the interests which support the Government made an issue of the Government’s win-the-war effort. The Prime Minister also uttered cheap gibes against the Opposition on the ground of its lack of unity. The cheap gibes of the Prime Minister regarding the disunity in the ranks of the Opposition will not heal the obvious breaches in the ranks of the Government parties. We realize and appreciate the struggle for world domination by the powers of reaction with all its implica tions. We know that the workers of this country will lose materially mote than any other class in Australia should the dictator powers succeed in their ambition. We know, too, that the people we represent in this House are called upon to make the greatest sacrifices in blood and sweat to preserve this Commonwealth against invasion. Because the big financial and business interests of this country are making nl) sacrifices comparable to those made by the workers, and because they have shown, no disposition to make any sacrifices in money or property for the defence of thi* country, we are determined that there shall be a levelling up of sacrifice before the workers are asked for more.

The Prime Minister claims that my criticism of Mr. Essington Lewis, Sir Phillip Goldfinch and Mr. Kneeshaw of the Munitions Board in New South Wales, and those of similar kidney who control the munitions boards in other States is based on- personal hatred. I went to great pains to point out that there was neither personal bias nor animus in our criticism of these gentlemen. We do not question their patriotic motives. We do claim, however, that they influence the decision of the Minister and in their advisory capacity wield enormous autocratic powers. It is ridiculous for the Prime Minister .to say we believe that Mr. Essington Lewis would not care if Australia lost the war. We know very well that that gentleman’s material interests are wrapped up in the success of this country just as much as are those of the people whom we represent. What we do say is that these gentlemen are only human beings who, because of their past interests and environment, would not hesitate to use their enormous powers to effect some sort of breaking down of the conditions of the workers. The Prime Minister professes childish innocence as to who should he consulted as to the appointment of the workers’ representatives on the munitions boards. The right honorable gentleman said that it was difficult to determine who could speak with responsibility on behalf of the trade union movement. It is true, as has been pointed out by the Prime Minister and by the Leader of the

Opposition (Mr. Curtin) that there is a considerable division of authority in the industrial labour movement. The Australasian Council of Trade Unions does not represent all the trade unions of Australia, nor does it represent all the States of Australia, but at least that body does represent the vast majority of the organized trade unionists in Australia, and the Prime Minister might well have consulted the Australasian Council of Trade Unions before the appointments of workers’ representatives on federal boards were made. It is equally “true that the Trades and Labour Council in each of the States does not represent 100 per cent, of the trade union movement because many unions are not affiliated with the Trades and Labour Council. Nevertheless, the fact remains that the Trades and Labour Councils represent the vast majority of organized labour in the States, and satisfaction would have been given to a majority of the workers if the Trades and Labour Councils had- been consulted before the appointments of workers’ representatives were made. The Government might even, as a last resort, have consulted representatives of organizations connected with major industries. On the admission of the Prime Minister, however, neither the Australasian Council of Trade Unions nor the Trades and Labour Council in any State, nor any responsible body of trade union opinion was consulted in the matter. “We, and the. workers generally, are expected to accept as the workers’ representatives on these State boards men who were appointed, not on the recommendation of the trade union movement, but on the recommendation of people who over the last half a century have been the executive officers of the enemies of organized labour in Australia. It is an interesting fact that, although the Prime Minister did not deny that these regulations represent the first instalment of industrial conscription, he endeavoured to split straws as to how the bringing about of industrial conscription was accomplished. I said that regulation 59 a of the 24th May 1940 contained a definite safeguard which protected the workers against industrial conscription. I pointed out that that regulation contained a proviso that nothing in ft should authorize the imposition of any form of industrial conscription. I said, further, that Statutory Rule No. 127 of the 5th July repealed regulation 59 a. I further pointed out that on the 20th June the principal act was amended to give the Government compulsory powers over labour. I then pointed out that Statutory Rule No. 128 was identical with regulation 59 a with the exception of the omission of those vital words which gave the workers protection against industrial conscription. In denying the accuracy of the statement I made regarding the means utilized for the introduction of industrial conscription the Prime’ Minister is merely splitting straws. The right honorable gentleman was uncharitable enough to those who supported the amendments to the act in June to say that the damage was done when the amending National Security Bill was passed on the 20th June last. I am not particularly concerned whether the Prime Minister is technically right in saying that the amending bill passed on the 20th June brought about the abolition of the safeguard against industrial conscription or I am right in saying that regulation 59 a, which contained the safeguard, is superseded by those regulations which I now propose should be disallowed. We already have conscription of labour, and conscription of man-power for service in the Militia, but up to date the Government has made no effort to conscript wealth or property for the defence of Australia. Yet the Government, at the behest of the representatives of capital on the munitions boards, demands further sacrifices from the organized trade union movement. The Prime Minister did not substantiate the claims of the Government that there is a genuine shortage of skilled labour in Australia. He says that these regulations arose out of an agreement with the Amalgamated Engineering Union. I do not wish to do the right honorable gentleman an injustice when I say that he sought to imply that the Amalgamated Society of Engineers was au fait with what was contained in these regulations; in fact I think he would have us believe that that body is entirely in favour of the regulations which we now ask the House to disallow. I challenge the accuracy of that statement. I do not think that any part of the industrial or political labour movement in Australia was consulted in connexion with this matter. I challenge the right honorable gentleman to demonstrate that any section of any union in Australia has shown any inclination that it is prepared to support the regulations lock, stock and barrel. Our party will not quibble over regulation 3. We say thatthe whole of the regulations should be thrown out, because one paragraph is entirely dependent on the other.No Labour man would vote for their retention. Much has been made of the schedules appearing at the end of the regulations. Irrespective of whether or not the regulations go by the board, the wages fixed in the schedules will still prevail. The schedules are merely a sugar coating to make a bitter pill appear more palatable to the workers. I am pleased to hear that the Leader of the Opposition and his party will support us in our endeavour to have these regulations disallowed. The only regret I have is that the honorable gentleman and his party are not prepared to vote against the whole of them unconditionally.

Question put -

That regulations 1, 2, 3 and 4 of the National Security (Employment) Regulations (contained in Statutory Rules 1940, No. 128, made under the National Security Act 1939-1940) he disallowed.

The House divided. (Mb. Speaker- Hon.g. J. Bell.)

AYES: 28

NOES: 33

Majority . . . 5

AYES

NOES

Question so resolved in the negative.

page 451

BILLS RETURNED FROM THE SENATE

The following bills were returned from the Senate without amendment;-

Papua Bill 1940.

Gold Mining Encouragement Bill (No. 2) 1940.

page 451

COMMONWEALTH ELECTORAL (WAR-TIME) BILL 1940

Bill received from the Senate and (on motion by Mr. Nook) read a first time.

page 451

DISSOLUTION: GENERAL ELECTIONS

Mr MENZIES:
Prime Minister · Kooyong · UAP

– I desire to inform honorable members that I propose to recommend to His Excellency the Governor-General that a dissolution of the House of Representatives be granted, with a view to the holding of the general elections on Saturday, the 21st September.

I have informed His Excellency that the necessary financial provision is being made for the carrying on of the public services of the Commonwealth during the period that must elapse before Parliament can re-assemble.

It is proposed that the date of issue of the writs shall be Friday, the 30th August; that the closing date for the receipt of nominations shall be Saturday, the 7th September; and that writs shall be returnable on or before Saturday, the 26th October.

In accordance with established practice, the elections for the Senate will also bo held on Saturday, the 21st September.

page 452

TARIFF PROPOSALS 1940

Customs Tariff Amendment (No. 3) ; Excise Tariff Amendment (No. 2) ; Excise Tariff Amendment (No. 3)

In Committee of Ways and Means:

Mr SPENDER:
Minister representing the Minister for Trade and Customs · Warringah · UAP

– I move - [Customs Tariff Amendment No. 3.]

That the Schedule to the Customs Tariff 1933-1939, as proposed to be amended by Customs Tariff Proposals, be further amended as hereinafter set out, and that on and after the twenty-first day of August, One thousand nine hundred and forty, at nine o'clock in the forenoon, reckoned according to standard time in the Australian Capital Territory, Duties of Customs becollected in pursuance of the Customs Tariff 1933-1939 as so amended. That in this Resolution " Customs Tariff Proposals " mean the Customs Tariff Proposals introduced into the House of Representatives on the following dates, namely : - 2nd May, 1940 ; and 22nd May. 1940. [Excise Tariff Amendment No. 2.] That the Schedule to the Excise Tariff 1921-1939, as proposed to be amended by the Excise Tariff Proposals introduced into the House of Representatives on the second day of May, One thousand nine hundred and forty, be further amended as hereinafter set out, and that on and after the twenty-first day of August, One thousand nine hundred and forty, at nine o'clock in the forenoon, reckoned according to standard time in the Australian Capital Territory, Duties of Excise be collected in pursuance of the Excise Tariff 1921-1939 as so amended. [Excise Tariff Amendment No. 3.] That the Schedule to the Excise Tariff 1921-1939, as proposed to be amended by Excise Tariff Proposals, be further amended as hereinafter set out, and that on and after the twenty-fiist day of August, One thousand nine hundred and forty, at nine o'clock in the forenoon, reckoned according to standard time in the Australian Capital Territory, Duties of Excise be collected in pursuance of the Excise Tariff 1921-1939 as so amended. That in this Resolution " Excise Tariff Proposals " mean the Excise Tariff Proposals introduced into the House of Representatives on the following dates, namely : - 2nd May, 1940; and 20th August, 1940 (other than these Proposals). These proposals provide, first, for concessional tariff and excise treatment in respect of diplomatic representatives of foreign countries in Australia and, secondly, for giving effect to the decision of the Government, announced some weeks ago, to accord protection to local producers of petrol and petrol substitutes from indigenous shale and coal. Consequent upon the arrival in Australia of the Envoy Extraordinary and Minister Plenipotentiary of the United States of America in Australia, and the intention of the Government of Japan to appoint, in the near future, a similar diplomatic representative to Australia, the Commonwealth Government has given consideration to the insertion of appropriate items in the Customs and Excise tariffs so as to accord to those representatives immunity from customs and excise duties, in accordance with the usual diplomatic practice. The Commonwealth Government is pleased to accord those facilities to these distinguished representatives. Advice has recently been received from the Australian Minister to the United States of America, that he has been granted similar privileges and immunities in that country. The time was also considered opportune to examine other items involving external representation, with the result that customs tariff items providing for concessional tariff treatment of goods for Consuls, High Commissioners and Trade Commissioners have been redrafted. Only minor amendments, however, are involved. The excise tariff proposal in relation to petrol and petrol substitutes produced from indigenous shale and coal brings into operation the decision of the Government to assure to producers of those goods, protection for a period of fifteen years to an amount of 7.4d. a gallon over imported petrol and 5 1/2d. a gallon over petrol produced in Australia from imported crude petroleum, subject to the provision that the protection applies only to production commenced within the next two years. To implement this decision, all petrol produced locally from shale is now made dutiable at the rate at present applicable to petrol produced by the National Oil Proprietary Limited, namely 4d. a gallon, a reduction of 5 1/2d. a gallon, but no quantitative restriction applies. The excise duty on petrol substitutes produced from coal - for example, benzol - has been reduced from 5-Jd. to 4d. a gallon. At the end of fifteen years the duties will revert to those operative up to the present. The object of the concession is to encourage and speed up production of liquid fuels in Australia. The amendment will also provide a stable basis upon which this industry may be developed, all producers, including the National Oil Proprietary Limited, being placed on an equal footing for a period of fifteen years. To obtain the concessional duty, however, it will be necessary for companies which intend to engage in the production of liquid fuels to have their plant established and in production within two years. Progress reported. {: .page-start } page 455 {:#debate-34} ### HIGH COMMISSIONER BILL 1940 Motion (by **Mr. Nock)** - *by leave -* agreed to - That he have leave to faring in a bill for an act to amend section 9 of the High Commissioner Act 1909-1937. Bill brought up, and read a first time. {:#subdebate-34-0} #### Second Reading {: #subdebate-34-0-s0 .speaker-K4X} ##### Mr NOCK:
Assistant Minister · Riverina · CP -- I move - That the bill be now read a second time. The proposal embodied in this bill, to amend section 9 of the High Commissioner Act 1909-1937, provides for an alteration of procedure in connexion with appointments to the staff of the High Commissioner's Office, London, consequent on the decision to grant permanent status to certain officers of the staff. Section- 9 of the act provides, *inter alia,* that the High Commissioner may appoint officers for the purpose of any duties in the execution of the act, and sub-section 3 of that section provides that every such appointment shall cease to have effect at the expiration of six months from the date of appointment, unless the Governor-General in the meantime confirms the appointment. The section further stipulates that officers so appointed shall not be subject to the Commonwealth Public Service Act but, subject to the provisions of sub-section 3, shall be engaged for such periods and be subject to such conditions as are prescribed. Honorable members will be aware that in 1937 security of tenure, together with rights of superannuation, furlough, and other benefits, were extended to officers of the High Commissioner's staff whose duties were of a permanent nature. These privileges are not accorded to temporary employees in the High Commissioner's Office, nor are they granted under the Commonwealth Public Service Act to temporary employees in Australia. Under sub-section 3 of section 9 of the act it is necessary that action be taken to secure confirmation by the GovernorGeneral not only of appointments of a permanent nature but also of appointments of persons to perform work such as that of female office cleaners, floor polishers, window cleaners, &c. The occupants of such positions are. however, regarded as temporary employees, and confirmation by the Governor-General of their appointments is considered to be unnecessary. Moreover, such confirmation of the appointment of persons engaged in a temporary capacity is likely to create in the minds of these appointees the false impression that it carries with it a degree of permanency which was never intended. Actually, confirmation by the Governor-General does not, of itself, grant permanency of tenure to any officer, whether his duties be of a permanent or a temporary nature. Before permanent status can be accorded to an officer, it is necessary under sub-section 6 of section 9 of the act that the Minister, on the recommendation of the High Commissioner, shall direct, by notice in the *Commonwealth Gazette,* that that officer shall be deemed to be an " employee " within the meaning of section 4 of the Superannuation Act 1922-1934. In order that there should be no misunderstanding as to the particular officers of the High Commissioner's staff to whom permanent status has been given, it is considered that the necessity for obtaining confirmation by the GovernorGeneral of appointments of persons in a temporary capacity should be dispensed with. It is proposed, however, that appointments of officers to the permanent staff in London shall still be confirmed by the Governor-General, but it is thought that such a provision is not nownecessary in the act, and could more conveniently be provided by regulation, i point out that control over expenditure on temporary employment at Australia House will still be maintained, as the funds required for such purposes must be appropriated by Parliament. Debate (on motion by **Mr. CURTIN)** adjourned. {: .page-start } page 456 {:#debate-35} ### RAW COTTON BOUNTY BILL 1940 {:#subdebate-35-0} #### Second Reading Debate resumed from the 7th August, *(vide* page 281) on' motion by **Mr. Spender** - >That the bill be now read a second time. {: #subdebate-35-0-s0 .speaker-F4U} ##### Mr FORDE:
Capricornia .- Phis bill provides for the payment of a bounty on raw cotton produced during the years 1941 to 1945 inclusive. The basic rates of bounty for each successive year will be 4 3/1d. 4id., 4id., 4d., and 3 1/2d. per lb. respectively when the Liverpool spot price of American middling raw cotton is 6d. per lb. The Opposition will support the measure, its only regret being that the bill was not introduced at, a. much earlier date. The unnecessary delay, hesitation, and vacillation that took place in regard to this industry struck a blow at the confidence of cottongrowers, and greatly retarded the development of the industry. My only objection to the bill is to the limitation imposed by clause 6 (1) which reads - >The total amount of bounty paid under this act in respect of raw cotton produced during any one calendar year shall not exceed the sum of £150,000. In view of all the circumstances, and the fact that the cotton industry is so bound up with the important subject of defence, it is a pity that the Government saw fit to limit the expenditure to that sum since it will restrict to about 25,000 bales the crop in respect to which the bounty will be paid. As it is estimated that the area under crop this year will be 80,000 acres, the 25,000 bales should easily be produced. Next year we hope the production will be much greater, say, 50,000 bales. If the proposed restriction remains, a point will soon be reached when no further development will take place. At the present price of 7.75d. for spot middling cotton, I am assured by the Queensland Cotton Board that a production of 25,000 bales would mean a return of 4.4d. per lb. of seed cotton. If the price fell to 6d. per lb., and the production reached 25,000 bales, the return to the growers would be only 3.64d. per lb. of cotton, which would be lower than the average of 4d. per lb. paid for the last six years. It is confidently expected that the demand for cotton will increase year by year and that in 1941 Australian factories will require 100,000 bales of cotton. In 1939 the Australian production was 12,500 bales; this year it is expected that the crop will yield about 9,000 bales. It is true that, as the result of the campaign inaugurated by the Queensland Cotton Board and encouraged by the Queensland Government, approximately 80,000 acres will be under cotton before the end of this year. That should increase the production from 9,000 bales for the crop just harvested to approximately 25,000 bales. It is a pity that any restriction should be imposed on the development of this industry, in which. 2,700 growers, 1,000 field workers and' 2,000 cotton pickers are employed, in addition to 170 persons employed in the ginneries. Altogether, the industry gives direct employment to about 5,870 persons. It is estimated that the cotton industry is the largest individual industry in the world; it certainly is destined to become one of Australia's most important industries. Cotton-growing has had a checkered career in this country, but I believe that it is now on the threshold of big developments. There is a better understanding of its importance, cultural methods have been improved, and the Queensland Government intends to expend large sums of money on water conservation and irrigation schemes. When I was Minister for Trade and Customs I found that this industry was in the doldrums. Although it had been given a substantial impetus by the Queensland Government, per medium of a guaranteed price of 5-Jd. per lb. in 1920, the measure of assistance had not been continued on a sufficiently liberal scale. In 1930, the Scullin Government introduced the Cotton Industries Bounties Act, which provided for a sliding scale rate of bounty on seed cotton for five years. There was also an import duty of 3d. per lb. on imported raw cotton, together with sliding scale duties on cotton yarns made from the raw cotton. In addition, an undertaking was given by the Commonwealth Government progressively to increase the scope of protection on cotton manufactured goods so as to provide a constantly increasing market for Australian raw cotton. The plan was to increase the output of both raw cotton and cotton manufactured goods, in order to reduce overhead costs and stabilize the industry. That bill, which I introduced into this chamber, was for a period of five years from 1931-32, but in May, 1932, the Lyons Government abolished the duty on cotton, yarn and brought in a new bounty act on raw cotton as from 1934-35 at 5jd. per lb. of raw cotton. The next year the rate was 4 3/4d., and for the following three years it was 4 1/4d. per lb., with the reservation that in the first of those three years the bounty was subject to the financial emergency reduction of 20 per cent., making the net rates 4.2d., 3.8d. and 3.4d. per lb. in the respective years. The provisions of the Financial Emergency Act in respect of cotton were abolished for the 1937-38 and 1938-39 crops, so that the bounty was 4id. per lb. In 1939, the Lyons-Page Government introduced a bill based entirely on the Tariff Board's recommendation, which provided for a bounty for five years at the rate of 3 1/4d. per lb. That was a reduction of 3£d. per lb. on the bounty previously paid. But as that bill would certainly have been defeated in this House had a vote been taken, the then Government withdrew the measure, and two months later introduced a further bill which provided for a bounty of 4 1/4d. per lb. on raw cotton for one year only. In order to give some idea of the hostility to the legislation introduced in 1939 by the Lyons-Page Government, I shall quote from a number of messages that were sent to me. One of them, which came from the general manager of the Queensland Cotton Board, read - >Raw cotton bounty payments announced by Government as 3id. per lb. with maximum payment in any year of £130,000 is a reduction of Id. from present payment, and will limit production to 15,000 bales, though there is market here for 35,000 bales. New cotton bounty payments will definitely mean the extinction of cotton-growing in Queensland. **Mr. Fleming,** a member of the Queensland Cotton Board, sent the following telegram : - >Proposed bounty legislation at present before the House will mean the extinction of cotton-growing industry and the Callide Valley as a closer settlement area. Only increased assistance over present rates of bounty will assure expansion. Suggest no maximum limitation of funds for bounty payments. Proposed legislation means limiting the crop to 15,000 bales. These statements showed the hostility to previously ill-considered legislation resulting from ignorance of the economics of the industry. The Queensland Cotton Board is opposed to the limitation contained in clause 6 (1). There is no doubt that lack of knowledge and understanding on the part of the Government in 1939, leading to delay and hesitation, left the cotton-growers in doubt as to what they could expect for Hie future, with the result that many of them went out of cotton-growing. They believed that there was no stability in the industry. The Government came to n decision in 1939 without a thorough investigation of the industry. The then Minister was ignorant of the problems confronting the industry and of the effect of a reduction of the bounty. Many of the growers went in for dairying and pig raising and gave up cotton growing altogether, and the area under cotton fell in one year from 66,000 to 38,000 acres. It can easily be seen that there was some good reason for that. The reason was that the industry was not properly handled by the Commonwealth Government. As the representative of a district which produces 80 per cent, of the whole of the cotton grown in Queensland, I protested. The Government came in for criticism, not only from this side, but also from its own supporters, and the Minister for Trade and Customs was prevailed upon to allow the measure to stand over until he had received a deputation from the Queensland Cotton Board and, if possible, had made a personal inspection of the cotton growing areas. It is unfortunate that he was unable to make that inspection, but he did receive the deputation. Unfortunately other matters supervened, and the whole question was shelved, giving, I believe, a substantial setback to the development that was destined for the cotton growing industry if more generous consideration had been given to it by the Commonwealth Government. There have been too many changes of policy, and the lack of understanding of the problems confronting ike industry has caused successive governments to make many wrong decisions. I am glad that this bill has been brought forward. It is an improvement and I feel that my advocacy on behalf of the cotton-growers has not all been in vain. We must develop a far-sighted policy in regard to the cotton industry. No one will try to say that everything has been done by way of improved cultural methods, but a great deal has been done to improve those methods. The Queensland Government is alive to this question and is tackling it in a statesmanlike way. Australia will never produce its requirements of raw cotton until we go in for water conservation and irrigation in Queensland in a big way. In certain seasons of the year we get too much rain at the wrong time. We han rivers and creeks that could be dammed and the water conserved, by which means 100,000 acres of irrigable land could be put under cotton. In that way I believe we could produce the whole of Australia's cotton requirements. For years before and during the last war we were unable to produce Australia's requirements of sugar, but by an improvement of cultural methods, and a more scientific development of the industry in Australia sugar production has been so expanded that we now export more sugar than we use locally. By " Australia " I really mean Queensland, because 820,000 tons of the 8S0,000 tons of sugar that Australia produces is grown in Queensland; about 20,000 tons is produced from beet in Victoria and probably another 20,000 tons from sugar cane grown in northern New South Wales. What was done in the sugar industry can easily be done in the cotton industry. Individual cotton-growers can be given the necessary assistance for individual irrigation plants in areas where a big scheme of water conservation and irrigation could not be established. In certain States of the United States of America, Soviet Russia, Egypt and Peru, all of the cotton is grown under irrigation and the yield per acre is three or four times more than can be obtained from any dry-farming country. In what is known as the Theodore irrigation area, about 100 miles from Rockhampton, the irrigated land produces four times the quantity of cotton per acre that is produced under dry-farming methods. The average yield to the acre in that country is 1,200 lb. as against the average last year for the whole State of 320 lb. to the acre. Several new irrigation schemes are under consideration. What is known as the Wura irrigation scheme in central Queensland which would cost £400,000, would make available 60,000 acres of irrigable land suitable for cotton growing. Then further out, by damming the Dawson river, the Theodore irrigation area could be considerably increased. Individual plants could be installed with beneficial results in other localities. *A* special word of praise is due to the Queensland Government and, particularly, to the Premier of Queensland, for the statesmanlike manner in which they have realized the importance of the cotton industry and have agreed to take steps to assist in developing what one day will be one of the most outstanding primary industries of Australia. The Queensland Government has undertaken in writing that its plans for improving the efficiency of the cotton growing industry will pre-eminently and exclusively provide for - {: type="1" start="1"} 0. The quickest possible conversion of cotton production from dry farming to irrigation by the most economic means for each selected locality; 1. A special campaign by enough thoroughlyqualified men to instruct all farmers personally and quickly *as* to the absolute need for practising correct rotations and other essential cultural methods ; such campaign to be followed up persistently with the object of ensuring that the best practices are adopted by the bulk of the farmers in the shortest possible time. This campaign will include the circulation of suitable literature. I believe that the campaign will play an important part in the initial -stages. A lot of the farmers, many of them quite inexperienced in cotton-growing, went on the land without proper instruction. Mistakes were made and losses incurred. That will be obviated when this campaign is pursued. I, however, cannot overlook the fact that cotton production has made possible closer settlement of the great scrub lands in the Callide, the Dawson and the Upper Burnett districts. Where previously there were only 30 or 40 families engaged in pastoral pursuits, to-day there are about 9,000 persons operating on closer settlement holdings. In the initial stages of that development, when the farmers, many of them formerly labourers on the labour market, were unable to raise the necessary funds to buy cattle and pigs and carry out extensive improvements, they felled the scrub, burnt off the rough and between the stumps planted cotton crops. They were able to get an immediate return. They lived under primitive conditions in tents or galvanized humpies by the roadside. I am pleased to say that it was with the money from the cotton cheque they were able to improve their holdings, fence their properties, in many cases with wire netting, to keep out the wallabies which eat everything, buy a few more cows, improve their herds, install milking machines, grow a few more pigs, and go in for mixed farming. Some of them to-day, in addition to running cattle and pigs, have 20, 30 or 40 acres under cotton, and the existence of the cotton industry in that area has enabled farmers who went on the land with stout hearts, but very little capital, to accumulate quite a competence. But they had to work from daylight to dark. As the great majority of them came from the labour market themselves, they are most anxious to give a fairer deal to the cotton-pickers than they have been able to do, for instance, in providing better camping accommodation. To-day, unfortunately, many pickers have to live in tents, sleep in stables and so on, not because the growers want them to do that, but because the great majority of the growers are themselves poor men struggling to ,pay off debts incurred in improving their holdings. If this industry is stabilized and we go in for water conservation and irrigation, on a big scale, and increase production and reduce overhead costs, everybody in the industry will benefit. The Queensland Government is playing its part in bringing about this very substantial improvement. Another way in which the Queensland Government is assisting is - >By providing for a substantial increase of quality and number of the personnel of the cotton research station for the specific purpose of accelerating vital scientific work on plant breeding, pests, diseases, soils, fertilizers, cultural practices and especially the new problems that are sure to be encountered with production under irrigation and anything related to those measures. {: .speaker-JPT} ##### Mr Blain: -- I understand that the Queensland Government is sending cotton ginneries to the farmers to enable them to gin their own cotton. {: .speaker-F4U} ##### Mr FORDE: -- I am not aware that that is so. Ginneries cost a lot of money to establish. The ginneries are now controlled by the cotton-growers through their elected representatives on the Queensland Cotton Board. When the British-Australian Cotton Association established ginneries at certain centres throughout Queensland many years ago, it established quite a number of ginneries that have never been used. It was an eloquent person who floated that company. Ginneries which have never been used were established at Gayndah and Gladstone. Ginneries that are in work are at Glenmore, Rockhampton and Whinstanes, Brisbane. The establishment of ginneries will not be undertaken by the Government. That is left to the growers themselves, because under co-operative control the Queensland Government encourages the growers to buy out the British-Australian Cotton Association. The growers also have a mill for the production of cotton oil, for which there is an increasing market in the other States. That is an important adjunct to this industry. The ultimate cost to the Queensland Government of fully implementing its undertakings will be at least £650,000. That Government has also agreed to ensure " complete co-operation between its Department of Agriculture, the Queensland Cotton Board, the cottonspinners and the Department of Trade and Customs on all relative matters, particularly in regard to the supply at all times of raw cotton of the types needed by Australian users. A fully representative committee will soon be appointed to advise both the Commonwealth Government and the Queensland Government on these matters, especially on the growing of raw cotton of the types required to meet the requirements of spinners in the southern States, which is a very important question. There was a time when the cotton industry was not well organized, and the growers had difficulty in obtaining the right plants to produce the types of cotton required. During that period considerable friction occurred between the buyers of the raw cotton and the Queensland Cotton Board. The Government of Queensland has, however, realized that it is necessary that varying types of cotton shall be grown to meet the requirements of the spinners. Evidence of the recognition by the Queensland Government of the economic burden, and the grave risk of continuing to produce raw cotton in Australia wholly under dry-farming conditions, and also of its good faith in relation to the undertakings to which I have referred, is that it provided £65,126 during the 1939-40 financial year for scientific research and for loans to cotton-farmers, including £21,500 for irrigation works and experiments. It will provide a much larger sum for similar work during 1940-41. The Premier of Queensland has also signified that it is the intention of his Government to proceed with plans for the exploitation of underground water supplies and the provision of finance for individual pumping schemes, and the construction of an additional irrigation weir on the Dawson River, north of the town of Theodore. The Government of Queensland has already inaugurated a scheme to ensure the adoption by cOtton-f farmers of the best cultural methods. The personnel of the Queensland Cotton Research Station is being augmented for the specific purpose of facilitating work on plant breeding and the control of pests. A special soils officer from the Waite Institute at Adelaide is at present actively engaged in the Callide and Theodore areas on the location of soils most suitable for cotton production. I am glad to learn that the Commonwealth Council for Scientific and Industrial Research will assist in locating better rainfall areas. The Premier of Queensland has advised the Prime Minister that his Government is endeavouring, in every possible way, to improve and intensify the cotton yield, in order to develop this important Australian primary industry, with consequential beneficial effects in the reduction of overseas purchases, and the maintenance of adequate supplies for Australian manufacturers, thus endeavouring to bridge the gap between the quantity of raw cotton produced in Australia and the annual demand of the factories of the southern States, lt was after the Premier of Queensland had given the undertaking to which I have already referred that the Commonwealth Government took steps to introduce this hill, realizing that the development of the cotton industry of Australia was interwoven with our whole defence policy. I am sorry that the Government has seen fit to limit the expenditure under clause 6 a of the bill to £150,000 per annum, because there can be no doubt that cotton production should be closely related to the defence policy of the country. Although we do not know how long this war will last, we know that it must result in an increasing curtailment of imports, with almost inevitable difficulty to Australian manufacturers of cotton goods of various kinds. If we were manufacturing in Australia the whole of the cotton goods required by our people, we should require not 25,000 hales but 300,000 bales of raw cotton a year. I shall not say that Queensland is the only State in which cotton can be grown. I believe it can be grown elsewhere in Australia, but climatically Queensland offers the best prospects at present. I notice that the honorable member for the Northern Territory **(Mr. Blain)** is showing interest in this subject, and has what appears to be a sample of cotton with him. I believe that cotton could be grown successfully in many parts of the Northern Territory. I assure him and other honorable members that the people of Queensland have no wish to adopt a dog-in-the-manger attitude in respect of the cotton industry. I should like to see cotton grown wherever it can be grown in Australia, for the more widespread an industry becomes the more likely are the representatives of the people in this Parliament to take a broader view of it. State boundaries should not influence our views on a subject of this description. I believe that the Australian cottongrowing industry, which is still in the embryo stage, will become one of the greatest of our primary producing activities. The passing of this bill and the setting up of the proposed committee should, with the able assistance of such competent officers as **Mr. A.** R. Townsend of the Trade and Customs Department, give the cotton-growing industry a new lease of life. With the conversion of cotton-growing from a dry-farming operation to a process of irrigation, many of the problems which have been encountered in the past will disappear. The improved methods of cultivation which will be made possible by water conservation and irrigation schemes will undoubtedly bring to the industry a stability which, given continued protective assistance and the elimination of the hesitation, vacillation and procrastination that have characterized various Ministers who have been associated with it from 1931 until quite recently, will enable it to become one of the most important industries of the Commonwealth. {: #subdebate-35-0-s1 .speaker-JWT} ##### Mr FRANCIS:
Moreton .- I appreciate the action of the Government in introducing this bill for the continuance of the bounty on raw cotton for another five years. Cotton-growing is a very important industry in Queensland, and I feel certain that the passage of this measure will give to the growers a feeling of security that will encourage them to plan and organize with confidence. There are now approximately 2,700 growers, 1,000 field workers and 2,000 cotton pickers engaged in the cotton-growing industry in Queensland. The ginneries employ 170 persons. Direct employment is, therefore, provided by the industry for 5.,870 people. It is anticipated that 80,000 acres will be planted to cotton in Queensland for the next year's crop, as against only 38,000 acres for the 1940 crop. If this estimate should be realized the cotton-growers will have rendered good service to the Commonwealth in connexion with its war effort, and will, undoubtedly, haVe gone a long way towards providing for our local requirements. It is worth remembering that the cotton industry, in all its phases, is the largest single industry in the world. Under conditions of the highest efficiency, in both its primary and secondary branches, it has every chance of becoming one of the largest industries of the Commonwealth. The yield to the acre of cotton in Queensland has steadily fallen during the last ten years, after having been fairly good from the inception of the industry in 1920 until 1930. Unfortunately, for some years now the yield has been among the lowest recorded in cottongrowing countries. After consultations with the leading officials of the Queensland Cotton Board and of the cotton section of the Department of Agriculture in Queensland, the Tariff Board found that this retrogression was largely due to inferior cultural methods, the increased incidence of pests and diseases, and the variable rainfall and heat in the cotton-growing belt. The board also deplored the lack of co-operation between the Department of Agriculture of Queensland and the Cotton Board in respect of the provision of cotton plants required to produce the types of cotton most suitable for Australian manufacture. This gradual reduction of the per acre yield of seed cotton is to be regretted. Up to the time of the introduction of this bill, the Commonwealth Government had helped the cotton-growing industry by the payment of £170,000 as its half share of the losses incurred under the guaranteed price system that operated from 1924 to 1926, and by the provision of £1,100,000 subsequently for seed cotton and raw cotton. This bill provides for the payment of an additional £750,000, under the terms stipulated, during the next five years. The grand total of Commonwealth assistance to the industry is therefore about £2,000,000. This, I suggest, is most generous. In view of the serious state of the industry, the Commonwealth Government, after amicable negotiations with the Government of Queensland, agreed to endeavour to find means to eliminate the weaknesses referred to in the report of the Tariff Board. The Government of Queensland has now agreed to take steps to convert cotton culture from a dryfarming to an irrigation operation as soon as possible, to specialize in teaching growers the best cultural and rotation principles, and to increase scientific research activities so as to cope with cotton pests and diseases, breed new and better plants, test soils., and advise farmers as to fertilizers. Such co-operation between the Commonwealth Government and a State authority is altogether praiseworthy. The Government of Queensland will incur considerable expense in carrying out the undertakings it has given to the Prime Minister, but its efforts in that direction, together with the bounty now being provided by the Commonwealth Government, should open up for the cotton-growers a new vista of success. We have every reason to believe that this industry will one day become one of Australia's greatest assets. Irrigation is undoubtedly the key to the problem. The rainfall of Queensland, as, in fact, of most of the Australian States, is too variable to be relied upon for cotton-growing. In other parts of the world irrigated cotton areas yield from three to four times as much cotton as the best of the dry-farming areas. Similar results can be obtained in Queensland. The Government is to be highly complimented upon its foresight and wisdom in insisting upon a fully comprehensive irrigation plan as the basis for successful cotton-growing in Australia. With this vital reform, plus the provision of adequate scientific services by the Department of Agriculture of Queensland, the industry must prosper. When cotton-growing has been converted almost wholly to production under irrigation, the cost of producing raw cotton will become substantially lower than it has ever been in Australia. This should ultimately enable the industry to be maintained on a much larger scale, and at lower rates of bounty, or, alternatively, a measure of tariff protection. Incidentally, a great expansion of cotton-growing would create opportunities for farmers who may, through stress of war or the shrinkage in the exports of their present products, find it necessary to seek another vocation. {: .speaker-KLC} ##### Mr Mahoney: -- This bill will help only one State. {: .speaker-JWT} ##### Mr FRANCIS: -- I disagree with the honorable member. It will help Australia as a whole. Seeing that our imports of goods containing cotton are valued at £15,000,000 per annum, the expansion of cotton-growing of this country must open a wonderful field for further expansions in secondary industry. I believe the cotton industry to be one of the few remaining hig industries which can be developed in Australia on both the primary and secondary side with advantage to the whole community. If the industry is developed in the right way it will provide many new channels of employment. Hitherto it has had a chequered career in Australia. The first efforts to develop it were made as far back as 1860, during the time of the American Civil War, when cotton was scarce. Ten years later, the area under crop had increased from 14 acres to upwards of 14,000 acres. For 30 years it had many ups and downs. In 1903, and again in 1913, fresh interest was shown in the cotton crop, but a determined effort was made to resuscitate it in 1920, when the system of a guaranteed price was introduced. The Queensland Government at that time guaranteed the price of cotton, and continued to do so until 1925 or 1926, when it withdrew its support, and threw the whole responsibility for protecting the industry upon the Federal Government. Up to that time the Federal and State Governments had shared the losses incurred in the marketing of cotton at the guaranteed price. It was only after the Tariff Board had made a thorough investigation into the industry that comprehensive proposals were brought down by the then Minister for Trade and Customs, the late Honorable H. E. Pratten, with the object of putting it on a firm footing. Prior to that time, endeavours had been made to establish the industry in Australia by growing the seed cotton here, and marketing it overseas in competition with cotton grown in black-labour countries. A great deal of difficulty was experienced in selling our cotton on the London market. **Mr. Pratten** devised the scheme of granting a bounty for both primary and secondary cotton production. The measure he introduced provided for the payment of a bounty of £900,000 over a number of years. Of that amount, £600,000 was to be paid in respect of seed cotton produced in Australia, and £300,000 in respect of manufactured yarn, half of the material of which had been produced in Australia. That scheme pointed the way to ultimate success. The Commonwealth Government's expenditure under the guaranteed-price scheme from 1923-24 to 1925-26 was £170,900. Bounty payments on seed and raw cotton under Commonwealth Cotton Bounty Acts have been as follows : - This bill provides for the payment of bounty on raw cotton produced during the years 1941 to 1945 inclusive. The basic rates of bounty for each successive year will be 4 3/4d., 4£d., 4H, 4d. and 3* per lb. respectively when the Liverpool spot price of American middling raw cotton is 6d. per lb. As the Liverpool price varies up or down from 6d. per lb., each basic rate of bounty will be reduced or increased by an equivalent amount, except that in no circumstances will the bounty be allowed to exceed 5 1/2d. per lb. The bill also provides that the basic rate of bounty, and therefore all adjustments thereof in accordance with fluctuations in the Liverpool price, will be reduced at any time to the degree that any customs duty may be imposed on imported raw cotton. As it is possible that the Liverpool Cotton Exchange may close during the war, the bill enables the Minister to use the New York spot price of American middling raw cotton, and other factors, as a basis for determining an equivalent Liverpool price, so that Australian cotton-growers may receive equable rates of bounty. An annual sum of £150,000 will be provided from Consolidated Revenue for paying the bounty and, as usual, the unexpended balance in any year will be available for bounty in any future year under the act, in addition to the £150,000 provided for that year. Existing raw cotton bounty legislation expires on the 30th November next, with the completion of the harvesting and ginning of the 1940 cotton crop in Queensland. Early adoption by Parliament of the present bill is essential, in view of the great need for substantially increasing local cotton production for war-time needs. These needs particularly apply to summer uniforms, and various items of equipment, including tents, canvas, &c, for all the fighting services, and for the manufacture of certain high explosives. Australia's raw cotton requirements have advanced from 35,000 bales for the year ended on the 30th June, 1940, to at least 65,000 bales for the coming year. The 1940 Queensland crop will produce only 8,000 bales. "Were it to remain at 8,000 bales, much of the balance of 57,000 bales wouldhave to be imported from the United States of America, causing a serious drain upon the Empire's sterling funds in that country. Largely increased production of raw cotton in Australia would permit of a considerable reduction of American imports, as both countries produce similar types of raw cotton. Hence, more of our foreign exchange resources would be available for the purchase of aeroplanes, machine tools and other American commodities of great importance to Australia's war effort. No single plant is playing so important a part in the war as the cotton plant. Let us consider for a moment some of the things the cotton plant distributes. The four outstanding things required by a soldier in any war are food, clothing, shelter and ammunition. Second only in importance to the nitrogenous foods for soldiers are the fats that they must have. Most of the lard consumed by our armies is compound lard made from cotton-seed oil. Much of the butter the British armies are eating is margarine, of which cotton-seed oil is one of the principal components. The Australian Imperial Force is rightly provided with real butter, though, in my opinion, the allowance *per capita* is far too small. The dairy products and meat which our armies consume come from cattle largely fed with cotton-seed meal and hulls. Much of the clothing of our soldiers, particularly khaki, is made of cotton. Soldiers' hats are made of felt, a product of cotton linters. The buttons on their uniforms, when not metal, are celluloid, also a product of cotton linters. The artificial leather used in their equipment is made from cotton linters, and the real leather comes from cattle which are fed on cotton-seed meal and hulls. The tents which shelter our soldiers are made of cotton, the mattresses upon which the soldiers sleep are stuffed with cotton, and the soldiers' bedclothes are made either from cotton or from the wool of sheep which are fed to a large extent on cotton-seed meal. The basis of explosives is cellulose and glycerides, one coming from cotton linters and the other from cotton oil. This was such an important factor during the last world war that the "War Department took over all the cotton-seed oil-mills and operated them under licence. Can we find one other single source that contributes so much to the welfare of our soldiers as does the cotton plant ? It may not have won the last war,but we certainly could not have won without it. It will play an equally important part in the present struggle. Cotton production in Australia has risen by steady increases from 296,139 lb. in 1921 to 8,769,510 lb. in 1934, although it fell to 4,773,936 in 1936, the latest year for which figures are available. The Australian demand for cotton over the last ten years wasas follows : - Ihis shows the scope for further production in Australia. Production during the peak year of 1934, amounting to 8,769,510 lb., would have to be doubled to reach the demand for 1937-38 of 16,507,584 lb. The demand for the present year will be further substantially increased to meet our extra war requirements. I have said sufficient to show how important is this industry to the general development of Australia, and particularly at this time, because of its special relation to war needs. I regret the fallingoff of production in Queensland during the last ten years, but I am happy to say that the Commonwealth Government has prevailed upon the Queensland Government to look after the cultural side of the industry, and to co-operate with theWaite Institute and the Council for Scientific and Industrial Research in seeking a solution of the problems that confront the industry? {: .speaker-KZX} ##### Mr GEORGE LAWSON:
BRISBANE, QUEENSLAND · FLP; ALP from 1936 -- Did the honorable member say " prevail " on the Queensland Government? {: .speaker-JWT} ##### Mr FRANCIS: -- I did. {: .speaker-KZX} ##### Mr GEORGE LAWSON:
BRISBANE, QUEENSLAND · FLP; ALP from 1936 -- But has not the Queensland Government all along been assisting the industry? {: .speaker-JWT} ##### Mr FRANCIS: -- If the honorable member will read the report of the Tariff Board on the cotton industry he will see there, particularly on pages 5 and 6, statements which reflect no credit on the Queensland Government. The report points oat that the acreage production iu Queensland is only a fraction of what it is in other countries, due largely to lack of co-operation, and failure to attend to the cultural side of production. Therefore, I am justified in expressing my pleasure that the Commonwealth Government has been able to prevail upon the Queensland Government to co-operate in this work. The honorable member will recollect that I said earlier that the Queensland Government deserved praise for having undertaken to co-operate with the Commonwealth authorities in the future developmental programme. When this programme is under way, I feel sure that production will increase rapidly to meet an ever-expanding demand. {: #subdebate-35-0-s2 .speaker-JPT} ##### Mr BLAIN:
Northern Territory -- I support this bill, the purpose of which is to stabilize the cotton-growing industry in Queensland by providing for the payment of a bounty on production for a period of five years. I realize that if the industry is stabilized in Queensland it will, before long, extend over the border to the Northern Territory, where already a group of farmers is engaged upon cotton-growing along one of the rivers. I congratulate the honorable member for Capricornia **(Mr. Forde)** upon his consistent advocacy of the cotton-growing industry in Queensland. The Government has arrived at this scheme of assistance by method of trial and error. This is a scientific age, and we are entitled to expect the application of scientific methods to the encouragement of necessary industries. It is something which I have advocated for a long time. Most of our problems should be approached scientifically. The first step is to collect the facts. Then we should analyse the facts, and synthesize, or build up, from the facts. Thus, finally, we evolve our programme. I urge the Government, therefore, to set up a supreme authority which will be in a position rapidly to obtain exact information regarding any matter referred to it. This bill proposes to subsidize the cotton-growing industry for a period of five years, unfortunately on a descending scale, the rate of bounty being based upon the Liverpool price of cotton. It has been stated that the failure of the cotton industry in Queensland has been due to three reasons : the incompetence of the farmers, the ravages of pests, and the vagaries of the seasons. When considering the question of incompetence we must remember that many farmers in the Northern Territory and Queensland, who are cultivating marginal lands, are more or less compelled to engage in a diversification of crops in order to make a living. In contrast, many grandsons of the original owners of orchards and sugar plantations are highly efficient, not only in animal husbandry, but also in the production of specialized crops, by virtue of the experience handed down to them by their forefathers. Therefore, I resent any suggestion that the cotton industry in the Northern Territory has failed through the incompetence of the farmers. I come now to deal with pests. In common with Queensland, we are troubled - or are supposed to be troubled - with the boll weevil. I wish to pay a tribute to **Mr. Townsend** and **Dr. Cumpston** for the help they have given me in endeavouring to place the cotton industry in the Northern Territory on a basis that would enable it to compete with the southern States. Some time ago a regulation was gazetted which provided that no cotton could be sent from the Northern Territory to Queensland. This restriction was imposed because as far back as 1912 it was found that boll weevil existed in the Northern Territory, and at that time it was thought that the pest did not exist in Queensland. As a matter of fact, however, as has been pointed out in a brochure issued by the Queensland Cotton Board, the boll weevil had already been found in the bottle tree which is indigenous to Queensland, and the fear of its importation from the Northern Territory was unfounded. Subsequently I was successful in having the regulation modified. If cotton is grown and ginned in the territory, the ginned cotton or lint may be sent to Queensland, but only on the condition that it is converted into oil. The regulation now also provides that the heating process need not be applied in Darwin but may be applied in Brisbane for purposes of fumigation. So we were able to get over one stile. This concession has been of great benefit to the cotton-growers in the Katherine and Adelaide river districts of the Northern Territory. I have endeavoured to get the Minister for the Interior **(Senator Foll)** to provide for the cotton-growers of the territory single ginneries similar to those provided by the Queensland Cotton Board. The honorable member for Capricornia **(Mr. Forde)** said that the Queensland Government was not providing sufficient ginneries for the Queensland cottonfarmers apart from those at the large centres. As a matter of fact the Queensland Cotton Board is making available a large number of single gins for the use of farmers so that, over a period of years, the seed never leaves the district. I suggest that a similar ginnery should be made available for the cotton-growers of the Northern Territory. Only a relatively small amount of money would be involved in granting this request. The manager of the Queensland Cotton Board informed me that the cost of a single ginnery is £300 f.o.b. Brisbane. If I asked for tens of thousands or hundreds of thousands of pounds to be wasted in the territory it would be provided. {: .speaker-KA9} ##### Mr Jolly: -- Would it ? {: .speaker-JPT} ##### Mr BLAIN: -- The honorable member is the chief critic of money wasted by government departments including, I think, the Department of the Interior. 1 ask the Assistant Minister **(Mr. Nock)** representing the Minister for the Interior to bring to the notice of his colleague the desirability of securing these single ginneries from the Queensland Cotton Board as a means of developing the large areas of first-class land in the territory suitable for cotton-growing. There are millions of acres of light soils in the Northern Territory on which cotton thrives. We should do our utmost to develop the cotton-growing areas of the Northern Territory because most of the choice lands in other parts of Australia have already been selected. I believe that if we utilized all of our second-class lands suitable for cotton-growing Australia could produce the whole of its requirements of cotton for local consumption. A good deal of the land along the Northern Territory rivers is at present wasted or used only for the grazing of a few ticky cattle. Much of it could be profitably used for the production of cotton if a regulation were gazetted providing that unginned cotton grown in the Northern Territory could be sent to Queensland or if a ginnery were established on the Katherine River. It is anomalous that whereas unginned or ginned cotton may not be imported to Brisbane from abroad through the factories at Sydney or Melbourne, the entry of unginned or ginned cotton from the Northern Territory is also prohibited. I believe that the present policy of the Government in this regard is retarding the establishment of the secondary side of the cotton industry in Queensland. I point out to the Assistant Minister that he has a very real problem to deal with in connexion with those small farmers who planted 120 acres of cotton in mid-December. I have here a sample of cotton planted in midDecember in the Katherine River district. This sample, which shows prolific growth, was reported on very favorably by the Waite Institute. Similar samples have been sent to the Queensland Cotton Board. I urge the honorable gentleman to give very favorable consideration to my request to the Administrator at Darwin tha t a single ginnery be shipped to the Northern Territory from Brisbane by the next boat. The encouragement of the cotton industry in the Northern Territory will result in the population of the sparsely settled areas of the north and enable irrigation plants to be proceeded with which will also be of great benefit in opening up land suitable for the production of green vegetables the supply of which is such a problem to Darwin residents. Thousands of soldiers are being sent to Darwin and no provision has been made for the local supply of green vegetables. Some of the soldiers are so disgusted at this failure of the Government to provide for their needs in this respect that they are thinking of establishing their own farms on the Adelaide River for the production of green vegetables, which could be grown all the year round if an irrigation scheme were put into operation. Ministers whose interests are mostly concentrated inthe southern States should not be unmindful of their obligations to those who live in the north. I urge the Assistant Minister to give very serious consideration to the representations which I have made. {: #subdebate-35-0-s3 .speaker-KMZ} ##### Mr MARTENS:
Herbert .- Whilst I agree that there may be some truth in the statement of the Queensland Cotton Board that pests are causing a great deal of damage to the cotton crops, the greatest pests with which the cottongrowers have had to deal are the present Commonwealth Government and the one which preceded it. From year to year, this Government has merely meddled with this industry. It has been suggested that the cotton-growers are not as efficient as they might be. One can only gain efficiency through experience. If any industry is efficiently operating to-day it is only because those engaged in it have had long experience and because it has had a reasonable assurance of assistance over a number of years. At one period the quantity of cotton produced in Queensland was very large. A great deal more could be produced to-day if the cottongrowers were guaranteed against loss for four or five years. I do not agree with the honorable member for the Northern Territory **(Mr. Blain)** that all of the good land in Queensland has already been selected. Quite a lot of land just as good as that which has been opened up is still in the grip of the jungle. The failure of the cotton-growing industry has been due to the failure of successive governments to evolve a long-range plan for its protection. Some time ago a number of people thought that they could make fortunes growing cotton in the Marlborough district; their efforts were unsuccessful because of the uncertainty of the assistance to be granted from year to year and a few are still struggling there to eke out a living. Cotton is grown in the Burdekin River district. I have shown samples of Burdekin River cotton to experts, who have reported very favorably upon it. The man who grew those samples said that one of his greatest troubles was that he could not afford to extend his irrigation scheme to the cotton area until he had some guarantee " that he could carry on over a period of years. The difficulty in that area is the doubtful rainfall. Where irrigation is available the success of cotton growing is assured. There is plenty of room for an expansion of cotton-growing activities in the Burdekin River district and I have no doubt that more extensive crops of cotton would be planted if the Government adopted a long-range plan for the assistance of the industry. The same remarks apply to the tobacco industry, which now becomes increasingly important because of the necessity for the conservation of dollar exchange. We were told some time ago that only a small percentage of the cotton grown in this country would be of use for manufacturing other than coarse cloths. I do not think that there is any substance in that contention. Those who have produced cotton, even in a small way, have proved that *lit* is not correct. The idea originally held, that only coarse cloths could be made from Australian cotton, will not stand investigation. If those who are engaged in the industry be given the opportunity to study the varieties of cotton that need to be grown, and to acclimatize them, they should be able to produce in sufficient abundance to provide all the materials that Australia requires for any purpose. If they continue to receive a reasonable measure of support, they will become, in a few years, as efficient as those who are engaged in any other industry. I am not in agreement with the suggestion of the Tariff Board in regard to inefficiency. Efficiency is gained as the result of study of the different problems that are encountered. *No* individual investigator or body of investigators can become thoroughly efficient without the opportunity to study whatever problems arise. It is regrettable that some years ago, when there seemed to be a really good opportunity to establish the cotton industry in Australia, and make it of real use, it did not receive sufficient encouragement. Had it then been properly encouraged, it would now be well established, and we should be producing all the cotton that we need. {: #subdebate-35-0-s4 .speaker-KA9} ##### Mr JOLLY:
Lilley .- After the comprehensive survey of the Deputy Leader of the Opposition **(Mr. Forde)** and the honorable member for Moreton **(Mr. Francis),** I do not propose to say very much. I was impressed with the rosy picture of the great future of this industry painted by the Deputy Leader of the Opposition, and could not help thinking that the industry affords a good opportunity for the employment of the energies of some honorable gentlemen who will in all probability find themselves without an occupation after the 21st September next. I wish to refer particularly to the statement of the Deputy Leader of the Opposition, in which he deplored the fact that the bounty to be paid in any one year is not to exceed £150,000. I point out that that sum represents an increase of 50 per cent. on the average payment during the last five years. The highest amount paid in any one year has so far been £115,000. {: .speaker-K0K} ##### Mr Conelan: -- The honorable member does not object to the raising of the amount ? {: .speaker-KA9} ##### Mr JOLLY: -- I do not. In fairness, however, it must be borne in mind that the proposed amount of the bounty represents a substantial increase on what has been paid previously. {: .speaker-KMZ} ##### Mr Martens: -- What was paid previously merely kept the cotton-growers in a state bordering on starvation. {: .speaker-KA9} ##### Mr JOLLY: -- It must not be overlooked that if, owing to adverse conditions, the aggregate amount of the bounty in any one year does not reach £150,000, the sum by which it falls short may be expended in succeeding years. I repeat what I have said previously in connexion with this industry, namely that we are not justified as a national Parliament in agreeing to the payment of a bounty to any industry that is not conducted efficiently. I am gratified that satisfactory arrangements have been made between the Commonwealth Government and the Queensland Government with a view to placing this industry on a sound basis. Past results have not been very encouraging. {: .speaker-KMZ} ##### Mr Martens: -- Because of the meanness of the Commonwealth Government. {: .speaker-KA9} ##### Mr JOLLY: -- I am not blaming any particular government. What I emphasize is that, whether the industry concerned be in Queensland, or in any other State, the Commonwealth Government is not justified in paying a bounty to it, unless it be conducted on an efficient basis. The Commonwealth Government and the Queensland Government are endeavouring to achieve that purpose under the provisions of this bill. This industry can be of great value to Australia, not only for defence purposes, but also from an economic aspect. I pay tribute to the Commonwealth officers who have taken such a keen interest in it in the past, and congratulate this Government on having come to a definite arrangement with the Queensland Government to place it on a sound footing. Question resolved in the affirmative. Bill read a second time, and passed through its remaining stages without amendment or debate. {: .page-start } page 468 {:#debate-36} ### SUPPLY BILL (No. 2) 1940-41 Message recommending appropriation reported. *In committee* (Consideration of Governor-General's message) : Motion (by **Mr. Spender)** agreed to - >That there be granted to His Majesty for or towards defraying the services of the year 1940-41 a sum not exceeding £6,732,000. Resolution reported. Standing Orders suspended; resolution adopted. *In Committee of Ways and Means:* Motion (by **Mr. Spender)** agreed to - >That, towards making good the Supply granted to His Majesty for the services of the year 1940-41, there be granted out of the Consolidated Revenue Fund a sum not exceeding £6,732,000. Resolution reported and adopted. *Ordered -* >That **Mr. Spender** and **Mr. Nock** do prepare and bring in a bill to carry out the foregoing resolution. Bill brought up by **Mr. Spender,** and read a first time. {:#subdebate-36-0} #### Second Reading {: #subdebate-36-0-s0 .speaker-KUG} ##### Mr SPENDER:
Treasurer · Warringah · UAP -- I move - >That the bill be now read a second time. Supply Act No. 1 covers a period of three months up to the 30th September next. Supply is now sought for a further period of two months, that is, to the 30th November next. This measure makes provision for the sum of £6,732,000 to meet expenditure under the following heads : - The amounts included in the bill are based on the rates of expenditure approved in the appropriation for 1939-40, except in the case of defence requirements, where it is necessary to make increased provision to meet war conditions. Only in a few isolated items in connexion with which the expenditure is heavier in the earlier part of the year has the proportion of five-twelfths of last year's provision been exceeded. Honorable members will note that £1,000,000 has been provided under the heading, "Advance to the Treasurer". With the amount of £4,000,000 already included in the first Supply Act, a total of £5,000,000 will now be available under this head. It is necessary to finance from this vote all works except defence works which were uncompleted at the 30th June last, and to continue the payment of special grants to States. Appropriationsfor works and special grants to States are normally sought shortly after the presentation of the budget, and are thus available comparatively early in the financial year. This year these appropriations will not be obtained until a much later date than usual. In the meantime, the expenditure must be borne by Treasurer's advance. It is essential, in case of emergency, for the Treasurer to have at his disposal a fund sufficient to meet any reasonable contingency that might arise. The invariable practice is that information regarding the annual Estimates of expenditure is given to Parliament when the budget is brought down. There are reasons why some tentative information should be given at this stage regard ing war and defence expenditure for 1940-41. It should be understood that until the budget is brought down no final Estimates can be given. All that is possible is to convey an indication on the basis of such information as is now available. As honorable members know, it is impossible to present a completely reliable forecast because of changing conditions, and because of the difficulty in estimating at this stage what will be the actual expenditure in respect of the munitions drive. In the circumstances I can only, at best, submit a tentative estimate, and I estimate the figure at £145,000,000 in Australia and £32,000,000 overseas, or a total of about £177,000,000 Australian currency. For 1939-40, the expenditure in Australia was approximately £46,000,000, and overseas £9,000,000, or a total of £55,000,000. On the 1st July we had a cash balance of £28,000,000 in hand to meet defence and war expenditure. Loan appropriations already made are sufficient to meet the defence programme of armaments and works for some weeks. Debate (on motion by **Mr. Makin)** adjourned. {: .page-start } page 469 {:#debate-37} ### ADJOURNMENT Employment of Italians in Sugar {:#subdebate-37-0} #### Industry - Petrol Rationing - Imperial Chemical Industries, Deer Park: Offensive Effluent Motion (by **Mr. Spender)** proposed - >That the House do now adjourn. {: #subdebate-37-0-s0 .speaker-KMZ} ##### Mr MARTENS:
Herbert .- I desire to draw the attention of the House to a letter forwarded to the Prime Minister **(Mr. Menzies)** by **Mr. C.** J. Fallon, secretary of the Queensland Branch of the Australian. Workers Union. During recent months bitterness has 'been engendered in northern Queensland with regard to certain employees in the sugar industry, because a newspaper, which one might describe as filthy, has frequently referred to those employees as " dagoes ". The newspaper to which I refer is *Smith's Weekly,* which has charged the Australian Workers Union with collecting money from these employees in order to make them financial members of the union. The letter is dated the 26th July, 1940, and reads as follows - {:#subdebate-37-1} #### Hon. R. G. Menzies, P.C., {:#subdebate-37-2} #### Prime Minister, {:#subdebate-37-3} #### Canberra {:#subdebate-37-4} #### Dear Sir, I respectfully suggest for your consideration that articles published by *Smith's Weekly* which circulates in Queensland, will probably have results which may prove an embarrassment to the Federal Government and to Australia, and cause serious industrial and racial conflict, in Queensland and elsewhere. I refer to articles directed against a section of workmen who are consistently referred to as Dagoes by *Smith's Weekly.* The articles published by this paper are written without any regard to the facts, and could be described as ahotch-potch distortion and deliberate falsehood. As regards the sugar industry, so frequently referred to in these articles, it is true that a substantial number of foreign workmen and farmers, including Italians, are engaged in the production of sugar cane. Practically the whole of the employees, including foreign workmen, have been members ofmy union for many years. In 1920 the Australian Sugar Producers Association and the Queensland Cane-growers Association entered into an agreement with my union to control the percentage of foreign cane-cutters to be employed in each sugar mill area each year. This agreement is identified as " The Gentlemen's Agreement ". One of the reasons which actuated the three organizations in seeking to exercise this control was to prevent employment of an undue number of foreign cane-cutters, and to reduce the percentage of such cane-cutters who were employed. The agreement achieved our intention and the number of foreign cutters have been substantially reduced. As a matter of fact, that agreement applies, not merely to Italians, hut also to all persons other than Britishers. The number of foreigners among the employees in this industry is decreasing every year. The letter continues - >For the purpose of the agreement all perrons, other than persons born in the United Kingdom or Australia, were regarded as foreigners. > >In addition to the intention referred to, the parties to the agreement were desirous of preventing generation of racial bitterness, and securing industrial peace. The agreement achieved this objective, and has been of inestimable value to the industry. > >The practice when employing cane-cutters is that the employers select their own cutters, whosign agreements as provided for in the Sugar Industry Award, in the presence of a representative of the Employers Association and a representative of my union, who cooperate together to prevent more than the permitted percentage of foreign cutters from being employed. All cutters must produce the current Australian Workers Union mem bership ticket (as proof of his membership in the Australian Workers Union) at the sign on for scrutiny by the representatives of the two organizations referred to. > >As the sign on usually takes place in May or June, and our tickets are issued in the previous September, it follows that the persons employed already possess their union tickets before the sign on, and no union tickets are issued to cane-cutters at the sign on, or at any time immediately preceding the date of the sign on - That practice has prevailed for a number of years - >The system briefly outlined herein is a result of many years of experience, and that it is of immense value to the sugar industry and the State is indicated by the fact that, whereas previous to this system being inaugurated, the sugar industry was a hot-bed of industrial unrest, and strikes were frequent and bitter, the industry has now enjoyed many years of industrial peace. > >All organizations interested in the sugar industry are anxious to preserve industrial peace, and also the efficiency which is a feature of the industry, but the falsehoods published in *Smith's Weekly* will positively generate racial bitterness, and destroy the industrial peace and efficiency which we have been at such pains to foster. > >The sugar industry employs many thousands of seasonal employees, a very large number nomadic workers. Men of almost every nationality are to be found amongst the thousands who man the mills and harvest the crop. > >The work is very arduous and climatic conditions are harsh, consequently there is a great deal of inflammable material amongst this very large body of men. > >Amongst Italian workers are a substantial number who literally hate Fascism. Many of them were victims of Fascist brutality in Italy before they came to Australia. > >Except for a few undesirables, they are honest and industrious and very glad to be in Australia. > >With the approach of the commencement of the harvest season, my executive gave attention to the danger of racial feeling being generated as a result of the war, and decided that, notwithstanding the war, the Arbitration Court award and the " Gentlemen's Agreements " already referred to must be enforced irrespective of the nationality of the cane-cutters to be employed. > >In arriving at this decision, we were influenced by - > >1 ) Our legal obligation to law-abiding members of the union, irrespective of nationality. > >We understood that a powerful nation, in comparatively close proximity to Australia, is under certain treaty obligations to Italy. > >That any racial demonstration or offence to innocent foreigners might seriously embarrass the Federal Government and Australia. > >That the problem of dealing with foreigners is one for the Federal Government. > >That if a number of individuals were permitted to take it upon themselves to inflict hardship upon innocent people in north Queensland, it would be contrary to British justice; any crowd elsewhere would be equally entitled to take the law into their own hands. > >The decision of my executive was conveyed to all officials and members of my union in the sugar districts, and the employment of cutters was completed without friction. But in one sugar-mill area (at Tully) a representative of an insignificant and discreditable political organization attempted to exploit the position for political gain by inflaming British cane-cutters against their workmates from overseas. > >Officers of my union at Tully prevented what might have developed into an ugly situation. > >After the sign on had been completed, the mischievous person already referred to again attempted to cause trouble, and advertised a meeting for that purpose, with the result thatI communicated with Melbourne and the Federal Cabinet took action to prevent further mischief, and work is now proceeding smoothly through the vast area in whichthe sugar industry is carried on. > >The Prime Minister and the Premierof Queensland have both personally expressed to me their approval of the manner in which my executive handled a position which might easily have been fanned into something fraught with grave possibilities. > >It is quite apparent that the industrial peace which exists in the sugar industry must be repugnant to *Smith's Weekly,* because that paper has published articles each week since the 20thJune. 1940, which are grossly insulting to members of my union whom the paper describes as " Dagoes " and which reek with shocking falsehoods and are calculated to destroy the confidence of our members in my union, and thus prevent us from rendering the valuable services we are rendering in the interests of industrial peace. > >Recently, the Federal Government prohibited the publication of newspapers and roneoed sheets by the Communist party. I am reliably informed that since the Communists are prohibited from publishing their own newspaper!), they have adopted a plan of campaign as a result of which statements are made to and published by *Smith's Weekly* without any inquiry as to their authenticity. For example, the latest issue of *Smiths Weekly* states that probably 15,000 foreigners, including thousands of unregistered aliens, are being given preference of employment by the Australian Workers Union over good Australians on the northern cane-fields. > >The total membership of the Queensland Branch of the Australian Workers Union is more than60,000. The total number of Italian members is less than 3,000 employed in all kinds of industries. > >As to the statement that unregistered aliens are being given preference, I may state that at Tully, where the attempt was made to create difficulty on the question of' nationality, more than 490 men who were born in the United Kingdom or Australia were employed as cane-cutters as against 90 born in countries other than the United Kingdom or Australia. > >My information from our office at Tully, and also from the employers' organization, is that not one unnaturalized person was employed as a cane-cutter in that area. > >I would most earnestly suggest that serious consideration be given to the danger of racial conflict and the destruction of industrial peace which is almost certain to result if *Smith's Weekly* or any other paper continues to publish mischievous and false matter such as that recently published by *Smith's Weekly.* > >In making this appeal, I am actuated solely by a desire to prevent industrial or racial conflict, which would almost certainly reach dangerous proportions, and I respectfully suggest that that danger can be avoided if *Smith's Weekly* is prohibited from publishing deliberate and mischievous falsehoods in future. > >Yours faithfully, > >G. Fallon, Branch Secretary. My reason for reading that letter is that I desire to give to the people of this country some clear idea of the number of persons employed in the industry. The individual who endeavoured to stir up this trouble was prevented by the Government from doing so, following representations made by me. I appreciate the action taken. He also tried to do another dirty piece of work when he sought to establish a branch of the Protestant Labour party in that centre. I know the area referred to in the letter, as does also the Minister for Air **(Mr. Fadden),** who I am sure will agree with me that there is no considerable number of foreigners at the mill at Tully. Until the last year or two the gentlemen's agreement was not necessary in Tully, as only Australians and Britishers were employed there. To-day, of about 700 men belonging to the Australian Workers Union working in that locality, there are employed less than 100 aliens, naturalized and unnaturalized. {: #subdebate-37-4-s0 .speaker-JVR} ##### Mr NAIRN:
Perth .- Earlier to-day I referred to petrol rationing, with special reference to tradesmen, such as bakers and milk vendors, who will be severely handicapped if the scheme as published in the press is put into operation. Vehicles used for suburban and country deliveries, such as those used by storekeepers, bakers, milk vendors and others, are to be restricted to 5,000 miles a year, or approximately 100 miles a week. In respect of a baker, that represents about 16 miles a day, and in respect of a milkman about 14 miles a day, which is far below the normal requirements of the trades people concerned. The treatment of these persons who are engaged in essential industries, and are supplying food to the people, will compare most unfavorably with that proposed in respect of the owners of cars used for private purposes. A car used exclusively for private running is to be allowed a minimum of 4,000 miles a year; cars used for business and pleasure may be granted sufficient petrol to enable them to travel from 4,000 miles to 10,000 miles a year, according to the distance travelled last year. I should like the Minister for Supply and Development **(Sir Frederick Stewart)** to explain why the owners of cars used for private running are to be treated more generously than owners of commercial vehicles which are used exclusively for business purposes. The restriction of the quantity of petrol which may be used in a private car does not necessarily put the vehicle out of action, but the rationing of petrol may make a commercial vehicle uneconomical. A motor vehicle used in a business represents a costly overhead charge, and if it is to be allowed to travel only two-thirds of the distance normally travelled, it becomes an uneconomic unit. The Minister said this afternoon that if I studied the schedule I should find that there would be no injustice under the proposed rationing scheme. I have perused the schedule, but I am unable to obtain from it any assurance such as that given by the Minister. I shall be glad, therefore, if he will amplify the statement which he made earlier to-day on the subject. {: #subdebate-37-4-s1 .speaker-KCF} ##### Mr DEDMAN:
Corio .- I wish to deal with a matter which I understand comes under the control of the Minister for Supply and Development **(Sir Frederick Stewart).** On behalf of the people of Altona, I protest against the construction of a pipe line in that district for the discharge of an offensive effluent into Port Phillip from the annexe attached to the works of Imperial Chemical Industries Limited at Deer Park. In passing, I might say that I strongly ob ject to the building of an annexe on private ground at all. A wealthy concern like Imperial Chemical Industries Limited can well afford to neutralize any effluent from its works. I know that the Minister will tell me that his experts are of opinion that this effluent will be entirely harmless. However, as the result of a previous experience, the people of Altona are not inclined to accept that view. About twelve years ago a pipe Hue was run by the Commonwealth Oil Refineries Limited to the bay. On that occasion the people were told that the effluent would he entirely innocuous, but the discharge from this pipe destroyed excellent fishing grounds. According to health officials fish now caught in this area are unfit for human consumption. Consequently, the people of this district refuse to accept the view that the effluent from the new pipe line will be harmless. Undoubtedly, it will destroy another good fishing ground which at present is very popular with people of the 'bayside. Originally, it was intended to use the pipe line to discharge an effluent consisting mainly of dilutes of sulphuric acid which could easily be neutralized. Now, however, the pipe line is to take an offensive discharge from the leather works attached to the same factory, which it is quite impossible to render innocuous. I ask the Minister to look into this matter and to compel Imperial Chemical Industries Limited to purify any effluent from its works into the pipe line. {: #subdebate-37-4-s2 .speaker-KV7} ##### Sir FREDERICK STEWART:
Minister for Supply and Development · Parramatta · UAP -- In reply to the honorable member for Perth **(Mr. Nairn)** I repeat, as I indicated in reply to a question to-day, that the petrol allowance for private cars, which are not used for business purposes, is strictly limited to a maximum mileage of 4,000 per annum regardless of the normal mileage of such cars. It is true that in respect of cars which are used for business purposes, a graduated scale of rationing is provided in respect of extra mileage. It is also true that the petrol allowance for business vehicles of the class to which the honorable member refers, namely, suburban delivery pane) vans, used by milkmen and bakers, has been fixed on a basis of 5,000 miles a year. I point out, however, that this mileage has not been fixed arbitrarily by some public official, but has been fixed by the Liquid Fuel Control Board which consists of seven persons, five of whom directly represent petrol users. It is significant that the Advisory Committee, after examining the board's formula, did not object to the particular item to which the honorable member refers. Representations have been made to me on this subject by the honorable member, and other honorable members from Western Australia, and only to-day I forwarded their representations for sympathetic consideration by the Liquid Fuel Control Board. Incidentally, I point out that although tabulated allowances are set out in the data which have been supplied to honorable members, the State transport organizations, which will act as agents for the Commonwealth Government in implementing the rationing of petrol, have been vested with a good deal of discretion, particularly during the initial months of the operation of the scheme. The matter mentioned by the honorable member for Corio **(Mr. Dedman)** now comes under the control of the Department of Munitions. However, I had something to do with the subject inits initial stages. I have discussed it with the honorable gentleman. He has anticipated me by suggesting that the technical officers of the Department of Supply would testify that the effluent which it was proposed to discharge from the annexe at Deer Park would be innocuous. They are of that opinion, and in those circumstances it was considered that the Government would not he justified in incurring an additional expenditure of £10,000 on the construction of another line to discharge the effluent at an alternative spot further along the bay. I have given assurances, which will be honoured by the Minister now in charge of the Munitions Department, that this pipe line will be used only so long as the annexe is being utilized for defence purposes. One of the many objections raised was that the pipe line was being constructed in the interests of. Imperial Chemical Industries of Australasia Limited. I deny that imputation. I again give the assurance that this pipe line will be used for the discharge of effluent from the annexe only so long as the annexe is being used for war purposes. I also gave the undertaking that after the pipe line had been in operation for one month, I would visit the works in company with the honorable member, and if it could then be demonstrated to me that the effluent was offensive, action would be taken to remove the pipe line. In those circumstances, it could not be considered that we would be justified in spending a further £10,000 until at least the evidence and the opinions of the departmental experts had been proved tobe wrong by actual demonstration. Question resolved in the affirmative. {: .page-start } page 473 {:#debate-38} ### PAPERS The following papers were presented : - >Nauru - Report to Council of League of Nations on Administration of Nauru during 1939. > >New Guinea - Report to Council of League of Nations on Administration of Territory of New Guinea for year 1938-39. Ordered to be printed. Arbitration (Public Service) Act - Determinations by the Arbitrator, &c. - 1940 - No. 19 - Amalgamated Postal Workers' Union of Australia; Australian Postal Electricians' Union; Australian Third Division Telegraphists and Postal Clerks' Union; Commonwealth Telephone Officers' Association; Fourth Division Postmasters, Postal Clerks and Telegraphists' Union; Meat Inspectors' Association, Commonwealth Public Service; and Commonwealth Public Service Artisans' Association. No. 20 - Commonwealth Temporary Clerks' Association. No. 21 - Australian Postal Electricians' Union. No. 22 - Arms, Explosives and Munition Workers' Federation of Australia. Commonwealth Conciliation and Arbitration Act - R egulations Amended - Statutory Rules 1940, No. 153. Commonwealth Employees' Compensation Act - Regulations Amended - Statutory Rules 1940, No. 157. Commonwealth Public Service Act - Appointments - Department - Attorney-General - K. N. Rimington. H. A. Roberts, J. M. A. Stirling. Civil Aviation - E. C. Johnston, H. A. Mann, A. R. McComb. Interior - J. A. Campbell, H. V. Davies, F. J. Doolan. Defence Act - Regulations Amended - Statutory Rules 1940, No. 150. Royal Military College - Report for 1939. Iron and Steel Products Bounty Act - Return for year 1939-40. Lands Acquisition Act - Land acquired - For Defence purposes - Bankstown, New South Wales. Puckapunyal, Victoria. For Postal purposes - Carlton, Victoria. Warren, New South Wales. Motor Vehicle Engine Bounty Act - Return for year 1939-40. National Security Act - Regulations Amended -Statutory Rules 1940, Nos. 151, 152, 158, 159, 160. Post and Telegraph Act and Wireless Telegraphy Act - Regulations Amended - Statutory Rules 1940, No. 156. Seat of Government Acceptance Act and Seat of Government (Administration) Act - Ordinances of 1940 - No.16 - Real Property. No. 17 - Canberra Community Hos pital (No. 3). Regulations Amended - 1940 - No. 6 (Public Baths Ordinance). Supply and Development Act - Regulations Amended - Statutory Rules 1940, No. 154. Tractor Bounty Act - Return for year 1939-40. {: .page-start } page 474 {:#debate-39} ### ANSWERS TO QUESTION'S *The following answers to questions were circulated: -* {:#subdebate-39-0} #### South Australian Munitions Works {: type="1" start="1"} 0. When is it anticipated that munitions works will be started near Salisbury and Gawler in South Australia? 1. How many men is it anticipated will be employed annually in such works, and will the additional shell production in South Australia increase the plant and staff of the shell-testing range at Port Wakefield? 2. Will the Government favorably consider the question of house-building because of the increased labour needed in these works? {: type="1" start="1"} 0. It is anticipated that the erection of the works will be commenced during the present month. 1. The number of persons employed in the works will depend upon the requirements of the defence services, but the works will be capable of employing several thousand people. The Department of the Army will no doubt find it necessary to conduct its tests more frequently at the Port Wakefield range to cater for the increased production of munitions. This should involve additional employment. 2. It is expected that the munitions works will absorb a number of persons displaced from other industries as a result of the war, and it is, therefore, considered that the residential accommodation available in towns adjacent to the works will be sufficient to meet requirements. House-building is accordingly not contemplated. {:#subdebate-39-1} #### Postal Department : Melbourne Offices {: type="1" start="1"} 0. Did he approve of the leasing of the Melbourne Tramways Board's offices by the Postal Department? 1. Were any inquiries made by the Postal Department regarding the rental being received by the Melbourne Tramways Board for these premises? {: type="1" start="1"} 0. No. These premises were leased in 1938 and, therefore, prior to my appointmentas Postmaster-General. 1. No, because all negotiations regarding the acquisition of property either by purchase or lease are conducted by the Department of the Interior. {:#subdebate-39-2} #### Loan Applications {: type="1" start="1"} 0. What are the names of the individuals and organizations (private and public) that have, since the 1st September, 1939, applied to the Treasurer for authority to raise loan money, and/or increase capital? 1. What amount did each apply for, and for what purpose was the amount required? 2. How many of the applications were dealt with direct by the Treasurer? 3. How many were referred for report to the Advisory Committee on Capital Issues? {: type="1" start="1"} 0. With respect to numerous inquiries regarding the fishing industry, can the Minister indicate whether the Ship Bounty Act 1939 is to be amended to apply to wooden ships or whether government loans covered by a mortgage over fishing vessels will be arranged? 1. Will the Government undertake to render financial assistance to this promising industry, which affords the sole means of consumers obtaining tinned fish which is denied to them by licensing restrictions ? {: type="1" start="1"} 0. The questions of the desirability of a mending the Ship Bounty Act 1939 so that bounty may be payableon woodenflashing ships, and of the Government granting mortgage loans on such ships, have been referred by the Minister for Trade and Customs for investigation and report bythe Director of Economic Co-ordination and the Tariff Board in its capacity as the Government's Advisory and Consultative Committee. 1. The Government will further consider these matters when the reports of the authorities mentioned are received. War-time Boards. {: type="1" start="1"} 0. What is the personnel of all boards and authorities set up by the Government in connexion with the war effort ? 1. What payment, in each case, is received by such persons for such services? {:#subdebate-39-3} #### National Insurance {: type="1" start="1"} 0. What is the total amount expended to date for (a) claims by organizations, and (b) administration charges, in connexion with the suspended scheme of national insurance? 1. What is the total amount of outstanding claims not paid? {: type="1" start="2"} 0. Approximately £22,000. This represents claims in excess of authorizations. {:#subdebate-39-4} #### Airport Site Near Melbourne {: type="1" start="1"} 0. Will he lay on the table any reports from Commonwealth officers relating to land available for an airport near Newport, or any other place adjacent to Fisherman's Bend? 1. Was a request for reports made by **Mr. Thorby,** when he was Minister for Civil Aviation, and was his request complied with? {: type="1" start="1"} 0. Areas near Newport and at other places in the Melbourne metropolitan area have been reported upon by Commonwealth officers in connexion with investigations relating to sites for an airport. These reports are still under consideration and it is regretted that it is not possible to accede to the request to lay these reports onthe table. It is not likely thatany action will he taken during the war towards" the construction of an additionalcivil aviation aerodrome in or near Melbourne. 1. *So* requests for specific reports were made by **Mr. Thorby** when Minister for Civil Aviation, but he was fully aware of the various relevant proposals concerning the question of establishment of a second aerodrome tor Melbourne. {:#subdebate-39-5} #### Workmen's Homes August, the honorable member for Lang **(Mr. Mulcahy)** asked the following questions, *upon notice: -* 1.In view of the statement that the Commonwealth Bank is prepared to advance £50,000 to a building society at Glen Davis, will the Treasurer consider making finance available for the provision of houses for workmen at Lithgow andPortKembla where men engaged in defence work of national importance are living under shocking conditions? {: type="1" start="2"} 0. Will he also extend the same financial assistance to building societiesin Sydney, where there is considerable shortage of workmen's homes? The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. I am informed that all concrete propositions submitted to the Commonwealth Bank are considered on their merits, and in the light of other calls on the resources available. 1. While it is not practicable to approve all applications received, the bank has given substantial support to the Co-operative Building Society movement in New South Wales, and has agreed to advance some £1,700,000 to such societies. {:#subdebate-39-6} #### Importation of Bombers I am now in a position to inform the honorable member that in order to facilitate the local production of Beaufort aircraft, the Air Ministry arranged for the Bristol Aeroplane Company to supply ten sets of fabricated parts and ten sets of raw materials and equipment, shipment to be made prior to the 31st December, 1939. Due to the conditions which arose after the outbreak of war, the company had failed to complete the delivery of the full quantities required, when early in May an embargo was placed by the 1 United Kingdom Government upon the exportation from England of any further aircraft, aircraft materials or equipment. On the 29th July, however, cabled advice was received that the Ministry of Aircraft Production had authorized the company- to supply tho items necessary to complete these twenty aircraft sets, and that shipment would be made as early as practicable. House adjourned at 10.55 p.m.

Cite as: Australia, House of Representatives, Debates, 20 August 1940, viewed 22 October 2017, <http://historichansard.net/hofreps/1940/19400820_reps_15_164/>.