House of Representatives
18 September 1942

16^th Parliament · 1^st Session

QUESTION
- EVICTION OF SOLDIER’S DEPENDANTS
QUESTION
- PIG INDUSTRY
QUESTION
- AUSTRALIAN ARMY
QUESTION
- AC2 FALSTEIN
QUESTION
- MUNITIONS
QUESTION
- COMMUNISM
QUESTION
- ARMY HORSE TRANSPORT AT BALLARAT
QUESTION
- ALLIED WORKS COUNCIL
QUESTION
- CANTEEN AT RUTHERFORD MUNITIONS FACTORY
QUESTION
- WHEAT POOLS
QUESTION
- INCOME TAXATION
QUESTION
- DEHYDRATION OF EGGS
COMPULSORY TRADE UNIONISM
PRISONERS OF WAR
- Delivery of Mails
QUESTION
- PRICE OF MEAT
QUESTION
- EMPIRE PARLIAMENTARY ASSOCIATION
QUESTION
- DAIRYING INDUSTRY
TARIFF BOARD
- Annual Report
QUESTION
- MANICURES FOR MEN
ORDERS OF THE DAY
- Discharge of Motions
WOMEN’S SERVICES AUXILIARIES
SUPERANNUATION BILL 1942
- Second Reading
PAY-ROLL TAX ASSESSMENT BILL 1942
- Second Reading
QUESTION
- BUDGET 1942-43
ADJOURNMENT
PAPERS
ANSWERS TO QUESTIONS
- New South Wales figures do not include . 128 vacated farms of which transfer is incomplete, and 281 vacated farms not yet allotted. In Victoria, 51 farms have been vacated, but the permanent rehabilitation of settlers remaining is not yet complete
- Baking Conditions
- Melbourne Fire Brigades
- Australian Army : Disembarkation Leave
- International Sugar Agreement
- Trading Banks: Branches

Mr. Speaker (Hon. W. M. Nairn) took the chair at 10.30 a.m., and read prayers.

page 524

QUESTION

EVICTION OF SOLDIER’S DEPENDANTS

Mr CONELAN:
GRIFFITH, QUEENSLAND

– Has the Minister representing the Minister for the Interior seen in thismorning’s Canberra Times a report that the wife of an Australian soldier who is missing in Malaya has been served by the Department of the Interior with a notice of eviction from the cottage that she is occupying at Westlake? Is this assertion correct? If not, will the honorable gentleman furnish a report giving the facts of the matter?

Mr LAZZARINI:
Minister Assisting the Treasurer · WERRIWA, NEW SOUTH WALES · ALP

– I have not seen the newspaper report. I shall bring the matter to the notice of the Minister for the Interior, who will have inquiries made, and advise the honorable member of the result at the next sitting of the House.

page 525

QUESTION

PIG INDUSTRY

Mr BERNARD CORSER:
WIDE BAY, QUEENSLAND

– Will the Minister for Commerce consider the desirability of taking action to stabilize the pig industry, by eliminating the present differences in the ruling prices in Queensland, the southern States, and Western Australia?

Mr SCULLY:
Minister for Commerce · GWYDIR, NEW SOUTH WALES · ALP

– I assure the honorable member that every attention is being given to the stabilization of the pig industry. I have been in constant touch with representatives of the industry in the different States. A meeting of the joint council of the industry throughout Australia is to be held in Melbourne at an early date. I have asked that representatives of the executive shall meet rae in Canberra. Every phase of the industry will then be discussed, and it will be most sympathetically treated by the Government.

page 525

QUESTION

AUSTRALIAN ARMY

Transfer of Administrative Staff to Active Service - District Finance Office, Melbourne: Transfer of Clerks - Nurses in Northern Territory - Detention Camps.

Mr BARNARD:
BASS, TASMANIA

– In view of the persistence of the statement that many officers stationed at Administrative Headquarters of the Army are fit for more active service, will the Minister for the Army appoint a person with secretarial and accountancy qualifications to investigate and report upon the present organization and staff.

Mr FORDE:
Minister for the Army · CAPRICORNIA, QUEENSLAND · ALP

– This matter has been constantly under review. For some time, a committee has been investigating complaints, and suitable action has been taken on its reports.

Mr CALWELL:
MELBOURNE, VICTORIA

– Will the Prime Minister consult with the Minister for the Army regarding the action of the Army authorities in derating, for no justifiable reason, certain returned soldiers who are employed with the rank of sergeant or corporal in the office of the District Finance Officer in Melbourne, so that girls might be employed in their places, the soldiers being drafted into labour battalions as privates? Will the Prime Minister say whether this practice is to be discontinued, or whether it is to be continued with governmental approval?

Mr CURTIN:
Prime Minister · FREMANTLE, WESTERN AUSTRALIA · ALP

– The honorable member’s question was rather long, but if he will place it on the notice-paper, I shall confer with the Minister for the Army regarding the matter. I assure him that if there has been injustice, we shall endeavour to remove it. It is the desire of the Government to treat members of the fighting services as fairly as possible.

Later:

Mr ROSEVEAR:
DALLEY, NEW SOUTH WALES

– Will the Prime Minister arrange as a matter of government policy, for men who are working in the Finance Offices of the Army and whose age exempts them from active military service, to be discharged from the Army when they are replaced by women, so that they may work in labour gangs at award rates?

Mr CURTIN:
ALP

– Earlier, the Minister for the Army indicated that, for a considerable time, clerical and similar work carried out by men in the Army has been closely reviewed. That inquiry has applied to the Royal Australian Air Force also. As the result of these investigations, many men have been transferred to other duties, and their places have been filled either by women or by other nien who are unfit for more active duties. I am not able to announce any declaration of policy upon this matter, other than the general direction given to the reviewing committee to see that the best use shall be made, from the national stand-point, of the attributes of each person.

Mr Rosevear:

– That does not answer my question.

Mr CURTIN:

– I understood the honorable member to ask me to ensure that when men are replaced by women and their age exempts them from active military service, they shall be given pick-and-shovel work.

Mr Rosevear:

– No.

Mr CURTIN:

– We are doing our utmost to make the best use of the services of every individual in the community in as fair a manner as possible.

But the honorable gentleman will realize that a declaration of policy cannot be made by the Prime Minister in answer to a question without notice. For a considerable time, machinery to review the work that is performed by men in the Army has been functioning, and a large number of men have been relieved of the duties which they were performing.

Mr.Rosevear. - As these men are too old to engage in combat duties, will the the Prime Minister arrange for them to be discharged so that they may take work at award rates?

Mr CURTIN:

– Provided they can be replaced by competent persons?

Mr.Rosevear. - Yes

Mr CURTIN:
ALP

– I shall give consideration to the matter.

Sir FREDERICK STEWART:
PARRAMATTA, NEW SOUTH WALES

– Can the Minister for the Army say whether it is correct that Army nursing sisters who offered to serve overseas, but were sent to Darwin, where they have seen active service, no longer receive the benefit of the provision regarding deferred pay?

Mr FORDE:
ALP

-I do not know, but I shall make inquiries.

Mr CALWELL:

– Has the Minister for the Army seen a press statement that prisoners in military detention camps are compelled to dress in three minutes and to shave in two minutes? Will he have a statement prepared for presentation to the House setting forth the regulations under which prison camps are conducted, and will honorable members be given an opportunity to peruse this statement when the House meets next Tuesday?

Mr FORDE:

– I was not aware of the state of affairs alleged, but I shall give full consideration to the honorable member’s request.

page 526

QUESTION

AC2 FALSTEIN

Mr.RANKIN. - Will the Minister for Air accept the suggestion that is made by the Cohuna branch of theReturned Sailors, Soldiers and Airmen’s Imperial League of Australia in the following telegram that it has sent to me: -

Please suggest on behalf Cohuna branch soldiers league Federal Government concentrate on winning war and leave Falstein case to capable military authorities.

Mr DRAKEFORD:
Minister for Air · MARIBYRNONG, VICTORIA · ALP

– The question does not call for a reply.

page 526

QUESTION

MUNITIONS

Director of Production - Production Committees.

Mr MORGAN:
REID, NEW SOUTH WALES

– I ask the Prime Minister whether the production executive of Cabinet has considered following the example of the United States of America and Great Britain in regard to the appointment of a director of production, in order to co-ordinate the activities of the various departments that are engaged on war production, eliminate waste of man-power and materials, utilize idle machines, and institute a drive for greater production generally?

Mr CURTIN:
ALP

– The Production Executive was established in order to achieve the purposes which the honorable gentleman has in mind, and it is steadily advancing to its goal. The existing machinery is as good as any that could be devised.

Mr MORGAN:

– Is the Minister for Labour and National Service aware that the British Government is now officially sponsoring joint production committees in war industries similar to those advocated by the Minister for the Australian coal mines, and that a set of rules has been drawn up for the conduct of the committees? Will the Minister adopt a similar procedure in Australia with a view to ensuring harmony and increasing efficiency and production.

Mr WARD:
Minister for Labour and National Service · EAST SYDNEY, NEW SOUTH WALES · ALP

– I have seen a press report of what is being done in Great Britain. I am trying to obtain first-hand information so that I may compare the British scheme with what I had in mind. When this information comes to hand, I shall be able to inform the honorable member whether, in my opinion, a similar scheme should be adopted here.

page 526

QUESTION

COMMUNISM

Mr COLLINS:
HUME, NEW SOUTH WALES

– In view of the very large number of letters and telegrams that I am receiving, protesting against the lifting of the ban on Communism, will the Attorney-General state whether there is any truth in the rumour that the Government intends to remove the ban?

Mr FADDEN:
DARLING DOWNS, QUEENSLAND · CP

– This is entirely a matter of Government policy, for determination by the Cabinet. I have received probably as many telegrams as the honorable member, but all of them were received on the one day.

page 527

QUESTION

ARMY HORSE TRANSPORT AT BALLARAT

Mr POLLARD:
BALLAARAT, VICTORIA

– I ask the Minister for the Army whether the section of the army horse transport stationed at Ballarat has been ordered to vacate its camp in order that Wirth’s Circus may be enabled to occupy the area for the conduct of its show?

Mr FORDE:
ALP

– I am not in possession of information on that matter. I shall have investigations made immediately. If in any instance army needs conflict with the interests of the circus, I shall see that preference is given to the former.

page 527

QUESTION

ALLIED WORKS COUNCIL

Mr HOLT:
FAWKNER, VICTORIA

– Has the attention of the Prime Minister been directed to difficulties that have arisen in connection with the transfer of workers from other states to Queensland by the Allied Works Council because different wage rates operate in that State? Will the right honorable gentleman consider the application to the wage system of the Commonwealth of the principle of uniformity, which the Government has so successfully introduced in other directions?

Mr CURTIN:
ALP

– The Government is aware that workers employed under awards in the State of New South Wales, and transferred by the Allied Works Council to similar work in Queensland, receive a lower wage under the Queensland law than had been paid to them under the New South Wales law. This problem exists between other States also. In some instances, the rate in Victoria is lower than that in New South Wales. In certain aspects, the Queensland rate is higher than that in New South Wales, whilst in other respects the opposite is the case. The Government has asked the Commonwealth Arbitration Court to examine the matter and provide a formula, in order that a fair and proper basis may be established. The view of the Government is that the matter is one rather for a judicial pronouncement than for ad hoc decision by Ministers.

Contributions to Hospitals - Effect on Members of the Royal Australian Air Force.

Mr WILSON:
WIMMERA, VICTORIA

– I have received from the Mildura Hospital Board a communication relating to the taxation proposals of the Government as they affect donations to hospitals. I quote from it the following: -

For some time we have received an annual donation of £400 from this company. Under the new proposal of the Government, if this company continues to donate £400 per annum they will be required to pay another £300 in tax - in other words, to give us a donation of £400 they will have to make an outlay of £700- and I understand that the company is likely to take a very serious view of the matter, and it is quite possible that our annual grant from this source will be seriously curtailed if the proposed legislation becomes operative.

I ask the Treasurer whether such a result is implicit in the taxation proposals of the Government as they affect donations to hospitals. If so, does he intend to allow such a condition to continue?

Mr CHIFLEY:
Treasurer · MACQUARIE, NEW SOUTH WALES · ALP

– Representations have been made to me in regard to the taxation proposals of the Government referred to by the honorable member. The amending legislation now before the House provides that any donations made last year will be treated on the basis that previously operated, and that those made in future will be dealt with according to a system of rebates, having regard to the rate of tax paid. Some of the points put to the honorable member are not quite correct. It is apparent, that if the statement be accurate, the Commonwealth Treasury has in effect been paying £300 of the £400 donated to the hospital; in other words, the whole of the contribution was not actually made by the company, because three-quarters of it was borne by the Treasury on account of the lower amount that it received in tax. The whole position will be examined.

Mr HOLT:

– I desire to ask the Treasurer a question regarding the incidence of income tax upon allowances to members of the fighting forces. Has he considered the anomalies which arise from the fact that members of bombercrews stationed at Darwin and Horn Island are notofficially regarded as being absent from Australia, though they are in frequent contact with the enemy at points hundreds of miles distant from Australia? If the matter has been considered, what decision has been reached?

Mr CHIFLEY:

– The point has not previously been raised, but I shall have it examined.

page 528

QUESTION

DEHYDRATION OF EGGS

Mr ARCHIE CAMERON:
Minister for Aircraft Production · BARKER, SOUTH AUSTRALIA · ALP

– Can the Minister for Commerce give any information regarding the supply of machinery to factories in South Australia for the dehydration of eggs? Can he say what special conditions were laid down in respect of that State which do not apply to other States? Why is the State which produces most of the eggs for export the last to be fitted out with dehydration machinery?

Mr SCULLY:
ALP

-When I first came into office, I considered this matter of the drying of eggs for export, and everything was done to expedite the erection of factories in the various States. South Australia was the last of the States to apply for dehydration machinery, because it was considered that the position there in regard to eggs was more satisfactory than in the other States. Already in Victoria and New South Wales there were factories owned by private enterprise, but I insisted that all new factories should be under the direct control of the Department of Agriculture in the State concerned, or should be run co-operatively under the direction of the Egg Marketing Board, so as to ensure that the suppliers would be adequately protected. In this respect, South Australia is receiving favoured treatment. I am not aware that South Australia is being discriminated against in any respect as compared with other States, but I shall institute inquiries.

page 528

– I rise to order. The honorable member for Lilley is basing a question upon an answer given to a previous question, and I submit that he is out of order in doing so.

Mr SPEAKER:

– A further question is permissible provided it does not amount to a challenge or a cross-examination of the answer given by the Minister.

Mr JOLLY:

page 530

PRISONERS OF WAR

Delivery of Mails

Mr BECK:
DENISON, TASMANIA

– Can the Minister for the

Army say whether there is any truth in the report that, owing to the non-delivery of mails to enemy prisoners of war in Australia, Germany is threatening, as a reprisal, to hold up the delivery of mails to our prisoners in Germany and Italy?

Mr FORDE:
ALP

– When I was informed of a press statement to that effect, I gave instructions that an immediate investigation should be made, and a report be submitted to me to-day. When it is received, I shall make it available to the honorable member.

page 531

QUESTION

PRICE OF MEAT

Mr COLLINS:

– Can the Minister for Commerce state whether the Government has decided to fix the price of meat? If so, will the Minister consider the position of graziers who have committed themselves to the expenditure of thousands of pounds on the purchase of store cattle for fattening because, unless care be exercised, they will be faced with heavy financial loss?

Mr SCULLY:
ALP

– A Meat Commission is about to be appointed, and it will be representative of the interests to which the honorable member has referred. It will also have upon it a representative of the Prices Commission, and everything will be done to safeguard the genuine interests of graziers.

page 531

QUESTION

EMPIRE PARLIAMENTARY ASSOCIATION

Lecture by Mr. Falstein, M.P.

Mr CURTIN:
Prime Minister · Fremantle · ALP

– I move -

That the following orders of the day be discharged: -

No. 9 - Rural Industries - Joint Committee - First Progress Report - Resumption of debate on motion to print paper;

No. 10 - International Affairs - Ministerial Statement, 25th February, 1942 - Resumption of debate on motion to print paper;

No. 11 - Use of special funds for security purposes - Report of Royal CommissionResumption of debate on motion to print paper ;

No. 12 - Appointment of Mr. Casey as Minister of State of the United Kingdom - Resumption of debate on motion to print paper.

Honorable gentlemen will see that each of these subjects has been superseded in point of time by other matters. Their retention on the notice-paper could easily be an impediment to the debating of matters which honorable members might like to raise.

Question resolved in the affirmative.

page 532

WOMEN’S SERVICES AUXILIARIES

Notice of motion No. 4, in the name of Mr. Forde, for leave to bring in a bill relating to women’s services auxiliary to the Defence Force - by leave - withdrawn.

page 532

SUPERANNUATION BILL 1942

Motion (by Mr. Chifley) agreed to -

That leave be given to bring in a bill for an act toamend the Superannuation Act 1922-1937, and for other purposes.

Bill presented, and read a first time.

Second Reading

Mr CHIFLEY:
Treasurer · Macquarie · ALP

– by leave - I move -

That the bill be now read a second time.

This bill provides for the extension of superannuation rights to three groups of persons in the service of the Commonwealth. They are long-term temporary employees, persons employed by certain semi-governmental bodies, and persons appointed for a term of years to statutory offices. It also includes several amendments of the principal act recommended by the Superannuation Board. The Government took the opportunity to refer all these matters for the consideration of the parliamentary committee which was appointed to report on the Repatriation Act, and the provisionsof the bill are based on that committee’s recommendations, with the exception of one item on which the committee’s decision was not unanimous.

I shall deal first with the grant of superannuation rights to temporary employees. In 1937, employees of the Repatriation Commission, War Service Homes Commission, Council for Scientific and Industrial Research, and the High Commissioner’s Office, London, were given security of tenure and brought under the Superannuation Act for the first time. It was considered that these employees were, in effect, holding permanent positions in the service of the Commonwealth. The Government of the day was not prepared at that stage to include other groups of employees, but the Minister in charge of the bill said in his secondreading speech, that if a case could be made out for similar treatment in respect of any other classes of persons, who were in substance permanent employees, sympathetic consideration would be given to it. This Government considers that the superannuation scheme should be extended to those persons who are for all practical purposes, although not in name, permanent employees of the Commonwealth. Investigation has disclosed that about 5,000 employees, who are classed as temporary, are employed full time, and are occupying positions, the duties of which are of a permanent character. Furthermore, their positions are necessary for the carrying on of the work of the departments. Whilst many of these persons have been employed for short periods only, others have had long continuous service. As evidence of the permanent nature of the work on which many temporary employees are engaged, it may be of interest to honorable members to know that there are approximately 2,600 employees who have been continuously employed by the Commonwealth for five years and upwards and whose services the departments require indefinitely. Of that number about 320 have had from 20 to 40 years’ service; more than 1,000 have had from ten to nineteen years’ service, and about 1,250 have, had from five to nine years’ service. There is no doubt, therefore, that these employees are occupying positions of a permanent character. It is now proposed in this bill that temporary employees shall be eligible for superannuation benefits subject to the following conditions : -

that the employee shall be subject to medical examination as required by the act,
that he be required to give his whole time to his duties,
that he has had not less than five years’ continuous service,
thathe has not attained the age of 65 years - the maximum age for retirement laid down in the Superannuation Act, and
that the Chief Officer of the department certifies that the employee’s services are likely to be retained for an indefinite period.

An employee who complies with the first four conditions, but in respect of whom the Chief Officer does not certify that his services will be retained indefinitely, will have the right of appeal to the Treasurer. The names of persons who are to be regarded as employees for superannuation purposes will be published in the Gazette by the Treasurer. If an employee cannot pass the doctor but complies with the other conditions, he will not be eligible to contribute for a pension, but will be entitled to contribute to what is called the provident, account. He will contribute 5 per cent, of his salary to which will be added 3 per cent, compound interest, and on retirement he will also be entitled to an equivalent amount from the Commonwealth. Where an employee is over 45 years of age and his fortnightly contribution for a pension of £52 per annum exceeds 5 per cent, of his salary, he may elect to contribute to the provident account instead of for a pension. In fixing the minimum period of service at five years, the present system’ of recruiting temporary employees was taken into consideration. These employees are taken from a list of applicants in the order of application. If a temporary employee were allowed to contribute for a pension after a shorter period of service than five years, the whole position in regard to the method of recruiting temporary staff would have to be reviewed. When it is remembered that permanent employees are required to serve a probationary period of from six months to twelve months before becoming contributors, it will be agreed that employees who have not qualified in the usual manner for permanency, cannot be regarded a; having earned the right to contribute for a pension until after a fairly lengthy period of service.

The second group of persons to whom superannuation benefits are being extended, comprises the full-time employees of semi-governmental authorities. These persons are not directly employed by the Commonwealth, but are employees of authorities created by the Commonwealth, and their employment is authorized by act or ordinance. The Government is aware that there are distinctions between the functions of the different authorities and it is therefore proposed that officers of the Australian Broadcasting Commission, the Canberra University College Council, and the Canberra Community Hospital Board who are employed on a permanent basis shall be given superannuation rights, and that other semigovernmental authorities shall have the option of deciding whether or not their employees shall be brought under the Superannuation Act. When a pension becomes payable to or in respect of any of these employees, the Commonwealth will pay its proportion of the benefit to the superannuation fund in the usual manner, and will be reimbursed periodically by the authorities concerned. As practically all the present employees have at some time during their service been required to submit themselves to a medical test, it is proposed that the usual medical examination on entry shall be waived in those cases where the authority concerned acceptsthe full liability for any invalidity or widow’s pension that may become payable to or in respect of its present employees within three years after the commencement of contributions. Persons who become employees in the future will be required to submit to the prescribed medical examination before becoming contributors. The names of persons who are to be deemed to be employees within the meaning of the Superannuation Act will be gazetted by the Minister.

The third group to whom it is proposed to extend superannuation, consists of persons who are or have been appointed for a term of years to statutory offices and who are required to devote all their time to the duties of their office. As I stated earlier, superannuation rights were granted in 1937 to employees of the Repatriation Commission and of other statutory authorities, but the members of the authorities themselves were not in- cluded. There is a further anomaly that whilst a few persons holding statutory offices are contributors to the superannuation fund by virtue of their status as permanent Commonwealth employees, their colleagues are excluded. The bill will also rectify this. The number of persons involved is about twenty, and the names will be gazetted by the Treasurer. Under the act, if the services of a person holding a statutory office be terminated after a period of less than ten years and before he has attained .the age for retirement, he will be entitled only to a refund of his contributions. If, however, he has served for ten years or longer, and has not attained the retiring age, the pension payable will represent the amount of his contributions plus an equal amount from the Commonwealth. If his services are terminated on account of invalidity or having reached the age for retirement, he will receive the full pension for which he contributed. Persons holding statutory offices, who are not required to give their whole time to their duties and who may engage in outside employment, will not become contributors.

The bill also provides for an amendment as the result of the actuarial investigation of the superannuation fund as at the 31st December, 1939. The actuaries’ report and recommendation, together with the Superannuation Board’s recommendations thereon, have already been tabled.

The actuaries report a deficiency in the fund of £309,000. In their valuation they assumed an interest rate of 3£ per cent., and they draw attention to the high rate of retirement upon invalidity pension, and the comparatively low rate of mortality amongst pensioners. In their report they state -

The original rates of contribution were calculated on the assumption that the fund would earn interest at the rate of 4 per cent, per annum. At the present time, it would not be reasonable to assume that so high a into will bc earned on. the investment of contributions received in respect of future units. Since the inception of the fund, there has been a general decrease in rates of mortality. As a result, not only do pensioners on the average live to draw pension over a longer period, but, also, larger proportions of contributors survive to become pensioners. Further, certain additional benefits not allowed under the original scheme have been granted. These further benefits comprised the abolition of the seven years’ probationary period, the refund of contributions upon the death of single men and widowers without children and the granting of double pensions to children who have lost both parents. The combined effect of these factors is that the original rates of contribution - which have remained unaltered throughout - are not sufficient to support the present scale of benefits. Every new unit effected at these rates entails a financial strain on the fund and so increases the deficiency.

The actuaries recommend that the position of the fund should be improved either by increasing the rates of contributions by employees in respect of units of pension taken out in the future, or by increasing the proportion of pensions payable by the Commonwealth, combined with a corresponding smaller increase of the employees’ contributions. The Superannuation Board and the Parliamentary Committee recommend that the rates of contribution for units of pension effected in the future should be those recommended by the actuaries without raising the Commonwealth’s proportion of pensions. Provision is included in the bill accordingly. Opportunity is also taken to effect a number of further amendments to the act recommended by the board and also by the parliamentary committee to overcome anomalies and to promote the smoother working of the scheme. These amendments have been discussed by the Superannuation Board with representatives of the Public Service Associations. Section 13 of the Principal Act provides that on appointment employees must contribute for units of pension according to their salary groups, with a minimum of two units (£52 per annum). Those on lower salaries may, however, elect to take additional units to make up a total of four units (£104 per annum). Frequently, employees who have failed to elect for the extra units wish to do so at a later date, but are ineligible because the time allowed has expired. It is now proposed in clause 6a that in future all employees under 30 years of age on appointment shall be required to contribute for a minimum of four units instead of two units as at present. This amendment will ensure that employees contribute for the first four units at the lowest possible rates. Clause 6c provides that, where an employee over 40 years of age becomes eligible to contribute for additional units, he shall be required to do so unless, within a period of six months, he elects to the contrary. This will ensure that all such employees shall contribute for units of pension as they become available and that no employee will miss the opportunity owing to lack of knowledge, as is often the case under the present provision. Where an employee elects not to contribute for the extra unit, any amount that has been deducted from his salary in respect thereof will be refunded to him. Under this clause also, an employee who has not contributed for additional units as they become available to him and who desires to pick them up at a later stage, will not be able to do so unless he satisfies the board’s requirements as to health. The prinicpal act provides that employees must decide within a period of six months from their appointment whether they will contribute for a pension on retirement at 60 years of age or at 65. It is now proposed that, subject to the necessary adjustment of contributions, an employee under 60 years of age may elect at any time to contribute for a pension on retirement at 60 years of age instead of at 65 years. Also an employee over 60 years of age who desires to retire before reaching 65, may pay the necessary lump sum to entitle him to the full pension on retirement at the earlier age. Under the invalidity provisions of the act an employee whose invalidity is due to “ his own fault “ is entitled only to a very small pension representing his own contributions. The words “his own fault” are considered to be too wide in their application. Clause 11 therefore provides that an employee shall, on retirement through invalidity, be entitled to a full pension unless the disability has been “ deliberately and wilfully caused for the purpose of obtaining a pension”, in which case only a refund of contributions will ‘be made. Under this clause also, should a retired female employee, who has been granted an invalidity pension, marry and subsequently become restored to health, her pension will be cancelled. By her marriage the pensioner renders herself ineligible for reappointment to the service in the event of her health being restored. This amendment will bring these pensions more into line with widows’ pensions which are cancelled on re-marriage. Under the principal act, if a widower dies and leaves children over 16 years of age, his estate receives a refund of his contributions. If, however, he leaves a child under 16 years of age, the only benefit payable is the child’s pension. The amount of pension payable may be, and in some cases is, very small, whilst the amount of contributions may have been considerable. This anomaly has caused a lot of friction. It is accordingly proposed in clause 13 that, where a contributor who is a widower dies and leaves children under 16 years of age, a sum equal to the difference between the amount required to pay the children’s pensions a;nd ‘the contributions paid by the employee shall be payable to his estate. The clause will be made retrospective. Honorable members are aware that if a Commonwealth public servant wishes to contest a parliamentary election, he must first resign from the service. If he is not elected and rejoins the service, he must contribute at a higher rate as a new employee. Clause 16 of the bill will preserve such an employee’s superannuation rights in the event of his not .being elected and returning to the service within a period of two months from the declaration of the poll. It will also preserve his rights from the date of his resignation to the date of his reappointment in the same manner as if he were on leave without pay. Under the present act, where a maximum-age pensioner or a widow pensioner is employed or reemployed by the Commonwealth, the Commonwealth’s proportion of the pension is cancelled during employment. This provision acts harshly in the case of a few widows who take temporary employment with the Commonwealth to augment their small pensions. Under clause 21, a widow pensioner will be allowed to be employed temporarily by the Commonwealth without her pension being affected. The clause will he made retrospective to cover a few cases of hardship. It will also permit a maximumage pensioner to be re-employed for 28 days in any year without his pension being reduced. Section 73 of the act provides that the board’s staff shall include an actuary. Clause 37 of the bill will delete this provision, which is not required. The Commonwealth Actuary, whose office is in Canberra, is the actuarial member of the Superannuation Board, and is in constant touch with actuarial matters affecting the fund. Clause 41 provides that, if a pension becomes payable as the result of a contributor’s participation in war service, the Superannuation Fund shall be charged only with that proportion of the pension which represents the contributions paid by the contributor up to the date of his retirement or death. The difference will be paid by the Commonwealth. This clause also protects the rights of an employee who is on active service by providing that, if he becomes eligible to contribute for additional units, he shall be covered in respect of such additional units, unless within a prescribed time he notifies the board that he does not wish to contribute for them. These are the principal amendments, and I commend the bill to the House.

Debate (on motion by Mr. Fadden) adjourned.

Motion (by Mr. Chifley) proposed-

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

Mr CALWELL:
Melbourne

– When is the debate to be resumed? This is a particularly involved and complicated measure. Usually, when superannuation, bills are introduced in the State parliaments, consideration of them occupies a period of several weeks. This is one of the most important sessions [ have attended, and there is so much vital business before the House that it will be difficult to give proper consideration to all of it. I hope that we shall “he given ample time to consider the bill.

Mr Chifley:

– The honorable member will have’ until next week.

Mr BECK:
Denison

.- I, too, hope that there will he plenty of time for consideration of this bill. I have had a great deal of experience of municipal insurance funds, and I know that they give rise to all sorts of complications. This measure should be given thorough consideration, and every honorable member should have an opportunity to consider it fully before the debate is resumed.

Question resolved in the affirmative.

page 536

PAY-ROLL TAX ASSESSMENT BILL 1942

Motion (by Mr. Chifley) agreed to -

That leave be give” to bring in a bill for an act to amend the Pay-roll Tax Assessment

Act 1041.

Bill presented, and read a first time.

Second Reading

Mr CHIFLEY:
Treasurer · Macquarie · ALP

– by leave - I move -

That the bill be now read a second time.

The pay-roll tax legislation is a comparatively recent addition to the statute law of the Commonwealth. It has been in operation for little more than one year. During that time, its operation has been closely watched with a view to determining whether any improvements are possible by way of simplifying the procedure to be followed by taxpayers, and also in the direction of relieving administrative problems. The law has, in general, operated very satisfactorily, and there is no intention to depart from the general principles upon which the pay-roll tax is based. It has been found possible, however, to devise means of alleviating difficulties encountered by certain taxpayers in the furnishing of their returns, and that is the principal purpose of this bill. As the law stands at present, every person who pays wages at a rate in excess of £20 a week is required to register as an employer for the purposes of the Pay-roll Tax Assessment Act, and to furnish monthly returns of wages paid. From the wages specified in each monthly return, an exemption calculated at the rate of £20 a week is deductible. Persons who are employers for a full year, and who pay less than £1,040 in wages during the year, are entitled at the end of the year to a refund or credit of any tax paid by them during the year, i.e., the tax in respect of months in which they paid wages at a rate in excess of £20 a week. Experience has shown that the calculation of the statutory exemption on a weekly basis does not operate evenly over the whole field of taxpayers. There is no difficulty in those cases where the monthly pay-roll regularly exceeds £20 a week. In those cases the deduction at the rate of £20 a week is regularly taken, and in the course of a year, the total exemption so allowed would be slightly over £1,040. The position is different, however, in those cases in which the pay-roll falls below an amount calculated at the rate of £20 a week in one or more months during the year. In such cases, the exemption for each month is limited to the amount of the wages paid, and the total general exemption obtained during the year is consequently less than £1,040. The amount of exemption so lost by employers with fluctuating pay-rolls, as compared with employers with regular pay-rolls, is substantial. For example, seasonal employers may pay out more than £1,040 in wages in the course of two or three months. Under the present law, the exemption obtained by such employers might fall as low as £200. Anomalies of this kind will be removed by clause 5 of the bill which is designed to ensure that in any case in which a person is in business throughout the year, and fails, because of fluctuating pay-roll, to obtain the benefit of the general exemption to the amount of £1,040 during the year, he shall get it at the end of the year, and a refund or rebate will be granted to him accordingly. If he is not in business for the full year, the amount of the exemption will be proportionately less. A further proposal concerning the general exemption is that contained in clause 3 of the bill, which is designed to simplify the work of preparing returns by fixing the amount of deduction to be claimed in respect of each monthly return. Under the present law, the monthly deduction is calculated at the rate of £20 a week. Obviously, it would be easier for both the taxpayer and the department if the same amount were deductible each month. The effect of the amendment proposed in this regard is to split the annual exemption of £1,040 into twelve equal parts and to allow it in the form of a deduction of £86 13s. 4d. in respect of each monthly return. Where the monthly deduction of £86 13s. 4d. is in excess of the wages paid in any month, the excess is to be carried forward as an extra deduction to be made from the wages of the next month. This system of carrying forward excess deductions will obviate adjustments at the end of the year, and will enable taxpayers to enjoy the full benefit of the exemption as early as possible.

The Government has also given close consideration to the difficulties encountered by some taxpayers in complying with the requirements of section 18 of the existing law, viz., to furnish a return for each month within seven days’ after the end of that month. In the vast majority of cases, these requirements place no undue burden upon taxpayers. It is not proposed, therefore, to relax the requirements of the law regarding lodgment of returns insofar as the majority of taxpayers are concerned. It is acknowledged, however, that there are certain kinds of employers to whom the ordinary procedure does not apply satisfactorily. These include persons who conduct their businesses in such remote districts that they actually cannot lodge a return within seven days. There are also seasonal employers who, in the off-season, pay no wages but, under the existing law, are, nevertheless, required to continue lodging returns for each month if their annual pay-roll exceeds £1,040. Furthermore, there are employers who barely come within the scope of the tax, and whose monthly liability is so small as to be barely worth paying or collecting. In these and other cases, the existing law causes unnecessary irritation to taxpayers, as well as embarrassment to the administration, in view of the economic waste involved in handling returns which involve little or no gain to the revenue. With a view to removing such causes oi complaint, it i3 proposed in clause 6 ot the bill to authorize the commissioner to deal with such cases on their merits. Where he is satisfied that it is unduly burdensome to require an employer to furnish returns by the due date specified in the law, he may allow further time tor lodgment of the returns. Where the commissioner is of opinion that the furnishing of monthly returns is unduly burdensome, he may accept returns based on some longer period. This relaxation of the ordinary requirements of the law will not be widely applied, but will be confined to individual cases in which the circumstances warrant such relief, and in which it is clear that the revenue will not suffer by means of the granting of the relief. I have outlined the principal features of the bill. There are three other matters of less importance. Clause 4 is designed to implement the decision given by the previous Government, and confirmed by the present Government, that the pay-roll tax shall not apply to payments made to employees who are on active service with the fighting forces. Pay-roll tax has not been collected on these payments and allowances, and clause 4 of the bill gives legal authority for the exemption.. The two remaining matters consist of a drafting amendment in clause 7, and a provision in clause 8 for the reference to the Land Tax Valuation Board of applications by taxpayers for relief from .payment of pay-roll tax on the ground of hardship. This amendment conforms with an amendment of the Income Tax Assessment Act which has already been placed before the House. It is designed to facilitate the handling of those relief applications. The bill imposes no new liabilities or obligations upon taxpayers. It is designed simply to remove inequity and undue burdens upon taxpayers. In these circumstances I am confident that it will meet with the unqualified approval of honorable members generally.

Debate (on motion by Mr. Fadden) adjourned.

page 538

QUESTION

BUDGET 1942-43

In Committee of Supply: Consideration resumed from the 17 th September (vide page 491), on motion by Mr. Chifley -

That the first item in the Estimates under Division 1. - The Senate - namely, “ Salaries and allowances, £8,660 “, be agreed to.

Mr ABBOTT:
New England

– Never ‘before in our history has the Parliament had to discuss a budget while such dark war clouds hung over Australia. I shall briefly direct the attention of honorable members to the deterioration of the war situation since last September, particularly in Russia. Despite the heroic resistance of .the Soviet armies to the armoured might of Germany, backed by the whole industry of Europe, we have seen the Russians driven farther and farther back, until to-day they are being called upon to hold, at Stalingrad, one of the most important barriers to the severance of the arteries of the Russian nation. If the Germans are able to take Stalingrad, cross the Volga, and crash through to Astrachan on the Caspian Sea, the position of Russia, and in fact of the United Nations as a. whole, will become most difficult.

In the eastern theatre of war, since the attack of the Japanese on Pearl Harbour, we have seen their conquests spread far and wide. The achievements of Japan have been colossal. From the regions covered by the Great Bear to those of the Southern Cross, Japan has driven its enemies far from its own shores. It has broken through the barriers of resistance planned hy the allied commanders, and seized the Pacific outposts from which attacks might have been launched against it. In addition, Japan has conquered huge areas of country rich in natural resources of which Japan previously suffered a serious deficiency. Our defensive ring in the South-west Pacific, the Malayan barrier, the Netherlands East Indies and New Guinea, and the whole ABDA command have disappeared. The area we hold has shrunk to the western outposts of India and to the south-east portion of New Guinea, and even this is gravely threatened. In the Middle East the enemy stands poised at the entrance to the richest valley in the world, which it hopes to make a steppingstone to the great Irakian and Iranian oil-fields. Finally, in what we might call the decisive battle of sea transport, we have not been able to halt the enemy, though we have slowed down- his effort. But not even yet do I believe that we can claim that our losses of ships are less than our new building.

I have put before honorable members the blacker side of the picture. Turning to the other side, one of the most encouraging features is that sea-power, with ancillary air-power, is increasing very much in favour of the United Nations. The influence of seapower in this war will probably be as great as it has ever been in history. The nation which can control the seas, and put up an umbrella of air-power over its fleet, will, in the long run, secure victory for its armies. I believe that the United Nations will ultimately have this great advantage over the Axis powers. Another hopeful sign is that the industrial resources of the United States of America, which include the finest industrial plant in the world, are rapidly being geared higher and higher, so that more and more munitions and tools of war are being produced. This must lead, eventually, to the defeat of the Axis powers. In addition, the manpower of the United States of America is being mobilized for the purposes of fighting, and its armies are being rapidly recruited. “Within the last few days an announcement has appeared in the press to the effect that the American nation expected shortly to have about 4,500,000 men under arms. I believe that if we, as democracies, are to win the war, we must put forth every effort of which we are capable, and do it unitedly, as the Axis powers are doing. It is difficult not to admire the bravery, and fanaticism of our enemies, who fight to the death and do not question what they are fighting for. They consider that every nation against them that is an enemy must be destroyed. Contrasted with that outlook, the quibbling criticism of our country’s war effort that is indulged in by some honorable members makes our hearts sick and sore and causes us wonder whether, with our disunity, we shall ever be able to defeat our enemies and overthrow the dark forces of evil that are opposed to us. In my view it is the duty of the Government .to do everything in its power to unite the people so that they will fight as one man for the preservation of our institutions and the winning of the four freedoms set out in the Atlantic Charter.

The Prime Minister (Mr. Curtin) has made a clarion call to the nation for austerity. He has said that every man, woman and child must be prepared, for the next few years, until the conquest of our enemies has been achieved, to live Spartan lives. What he said, in effect, was that we must dedicate ourselves wholly to the service of the nation. With those sentiments every body will agree. It has been claimed that this is an austerity budget, but when I read it through, and studied the excellent sentiments expressed in the section headed “Review and Outlook”, I wondered whether it was a sincerity budget.

As we are frequently reminded, the road to hell is paved with good intentions. It seems to me that this budget, too, is paved with good intentions, and unless we are careful, it will lead us along the road to hell. In his “ Review and Outlook “ the Treasurer (Mr. Chifley) outlined certain financial requirements. He told us what we should do and what we should not do. But I regret to say that I can find nothing in the budget to provide for the implementation of the honorable gentleman’s commendable sentiments. The section on that point might have been written by the most orthodox economist in the world. In the absence of any proposals for giving effect to the views expressed therein, we may regard them as words, words, and more words, and mere pious sentiments. Tie Treasurer indicated that the problem that would have to be faced was to find ways and means to close a gap of £300,000,000. He said-

A3 we add more and more men and women to the large numbers engaged in war work, we subtract them from the already reduced numbers engaged in producing goods for civilian consumption. But if our financial and economic system is to be kept in balance we must transfer the spending of incomes from civil consumption to war expenditure in approximately the same proportion as we have transferred man-power from pursuits of peace to pursuits of war.

Owing to the great increase in employment and economic activity, incomes have expanded and spending power in the hands of the people is now at a rate greatly in excess of the flow of goods and services that the nation can spare for its civil needs.

I believe that every body will agree with that statement. The honorable gentleman proceeded -

The Government cannot allow this excess spending power to compete against the nation for the additional man-power and material? that are vital to our defence, or to bid up for the limited goods that are available for civil use, or to operate in “ black “ markets and so menace price stability. The Government is determined on this and will take such measures as may be necessary to impose its will.

But whatever direct controls are established for this purpose, the excess spending power must be transferred to the Government to pay the fighting forces and for the labour and materials used in producing munitions and war supplies. This is the financial price which must be paid. Whilst relying to a large extent on the voluntary efforts of the people the Government is resolved that its payment will not be evaded. Effort and sacrifice of comfort by civil population is the least part of the price. Many in the forces, many of the nation’s sons, pay the supreme price of all. No financial price compares with that.

Unfortunately no effective proposals are made to subordinate the desires of individuals to the needs of the nation, and that moist be done if we are to win through. There are two classes of goods upon which purchasing power may be expended - capital goods and consumption goods. The play of purchasing power upon capital goods has been very largely curtailed by the restrictions imposed by this Government and previous governments. There is not free play to-day for investment in capital goods. On the other hand, the play of purchasing power in connexion with consumption goods has raged practically unrestricted. That purchasing power cannot be restrained or curtailed merely by the raising of prices. I direct attention to a paragraph in regard to beer that appeared in the Sunday Sun of the 6th September last. It was headed : “City’s driest Saturday; beer supply ran out “, and read - “ The Federal Government is perturbed over the amount of money spent on drink, but raising the price won’t frighten people away from bars”, said a prominent hotelkeeper. “The public has money to spend on beer. If people want a drink, they’ll pay the extra pence “.

The Treasurer has stated that consume purchasing power must be immobilized and diverted to government use. There are several ways in which this consumer purchasing power may be restricted. In this regard, there is an excellent statement in the work entitled Australia Foots the Bill, published last year. It reads -

Money itself cannot fight- creating credit does not create soldiers, workmen, sloops or bullets; it merely increases the Government’s power to command resources in general which already exist. If the types of resources that the Government wants are not available, then what is the use of creating new credit? If they are available, then their control must be transferred to the Government from private individuals: that is, the money which gives this control must be transferred either by borrowing it, taxing it away, or destroying its value by inflation. But if, in order to gain this wider command over resources, the Government chooses inflationary methods, repercussions on prices will lead to injustices and anomalies and in all likelihood more will be lost, than gained on balance.

The Treasurer’s problem is to freeze this vast amount of consumer purchasing power that is in the community to-day. The honorable gentleman has pointed out. that twelve months a!ZO, 25 per cent, of the total man-power was engaged in the war effort, and that to-day 50 per cent. of it is so engaged. H.e has also stated that before the war there were 540.000 factory workers, mostly supplying civilian needs, whilst to-day there are 700,000, with only 200,000 of these in the factories, that are providing for the needs of the civilian portion of the community. In addition, there has been an enormous diminution of imports into this country, and the flow of them has been reduced to a mere trickle. This means that the available pool of consumption goods for ‘the needs of the civil community not only has shrunk enormously in the last twelve months, but is still steadily shrinking. The result has been that, against a diminishing pool of consumption goods, there has been a rapidly increasing purchasing power in the most freely spending portion of the community. In 1940-41, the income distribution of the Commonwealth -was ?aid to be £800,000,000. The estimate for 1942-43 is £930,000,000. This means that in the hands of the income-earners of the Commonwealth, for expenditure by them, there should he approximately £930,000,000. That money is being expended upon a diminishing pool of goods. In addition, there is a considerable volume of purchasing power to which neither the Treasurer nor any other member of this chamber has so far referred. This is the large volume of money that is being spent by allied troops in Australia, particularly by our American allies. I calculate that this is approximately from £15,000,000 to £20.000,000. That money is not provided by the Australian Government, and that Government cannot exercise any control whatever over the expending of it. Citizens of the United States of America who are members of the American forces or administrative staffs are not liable to taxation in Australia. Consequently, the available spending power in the Australian community to-day is between £945,000,000 and £950,000^000. This has to be damped down and frozen in some way if Australia is not steadily to steer itself into a position fraught with pending disaster. I direct attention to the distribution of the £930,000,000 to which I have referred. The first point that one should note is that the income-earners have increased from 2.S40.000 in 1938-39 to 3,200,000 in 1942-43. an increase of 360,000 persons. During the same period, the aggregate income has increased by £185,000,000 and the taxation by £93,500,000. The number of factory workers producing for civilian needs nas fallen by 540,000, whilst taxable income increased by £105,000,000 between 1939-40 and 1941-412. The distribution of that increase is said to have been as follows: In the under £400 group, £70,000,000, of the increase is absorbed. In the £400 to £1,000 group, the amount was £25,000,000, and in the group over £1,000 it was £10,000,000. The above figures show - 1, that there has been a large increase of income-earners ; 2, that taxation has not kept, pace with the rate of increase of incomes; 3, that the civilian goods pool level has fallen and is steadily falling; 4, that there has been an increase of income which has been most largely distributed in the lower income groups; and 5, that there is the added problem which has been brought about by the vast amount of purchasing power loosed by the allied forces in Australia. Whereas in the days of the depression there was a state of poverty amid plenty - poverty of purchasing power in conjunction with a plenitude of goods and considerable unemployment - to-day there is poverty of goods with no unemployment and with plenty of purchasing power - the exact converse of the position that existed in the depression period. The purchasing power of the community to-day must be damped down and immobilized until victory has been achieved by the allied nations and men are returning to civil avocations from the war and from munitions production, converting a war-time into a peace-time economy. When that occurs, the greatest volume of purchasing power must be placed in the hands of the people, in order that the factories may resume the production of the civil goods that the community may need. Some persons may say that, rationing of supplies is a complete method of controlling purchasing power and ensuring the equitable distribution of all goods among the community. It cannot be either a complete or an incomplete method. One of the difficulties in connexion with rationing is that, if it be extended to cover a tremendous range of goods, the result is complicated administration and continual demands on man-power, which in existing circumstances could not be met. It is suitable for application only to goods of cer tain classes or kinds. Some goods do not lend themselves to rationing, and could not be controlled by its means. If the presentenormous purchasing power be permitted to rage as a turbulent stream through the economic structure of Australia, we shall have black markets, the forging of ration tickets, and, generally speaking, an enormous degree of social discontent and loss of control of the price structure. The Treasurer has said that the gap of £300,000,000 is to be bridged by means of loans, &c. That, expression “&c”, covers a multitude of sins, and no one knows what goes on beneath it. Last year, net borrowings by all methods totalled £120,290,000.’ Discussing certain aspects of those borrowings, the Treasurer said -

Sales of war savings certificates fell below those of the previous year. Sales of national savings bonds were somewhat disappointing.

The honorable gentleman did not say how much central bank credit had been provided in order to fill the loans. An examination of the statistics for the last twelve months reveals that government and other securities, including treasury - bills held by the Commonwealth Bank, rose by £103,200.000. and the note issue by £37,400,000, between August, 1941, and August, 1942. 1 am not suggesting that because the note issue rose there would necessarily be inflation. But I say to honorable members opposite that when practically the whole of the increased note issue is in the hands of the public instead of in the hands of the banks, the community at large is putting it not in a national safe deposit but, figuratively speaking, in a jampot under a cherry tree in the backyard. That is “ hot “ money, which is ready to flow from the jam-pot into the community, there to be used the moment the public believes that the monetary system is getting out of control ; because people then become anxious to transform it from notes - of which they are distrustful - into goods. That has been the history of all inflation. When a baby has a rising temperature and spots on its face, the parent says to it, “ You are in for the measles “.

Mr Clark:

– Does not the same principle apply to war savings certificates?

Mr ABBOTT:

– It does. But in that respect it can he arrested. You cannot go into every backyard and seize the jam-pots. I maintain that the figures I have given disclose that at the present time considerable inflation is taking place in the community. The Treasurer (Mr. Chifley) said that he estimated that it would take £300,000,000 to bridge the gap - £179,710,000 more than was obtained last year. I say with all respect to the Treasurer and the Government that it is extremely improbable that they will be able to obtain this money by voluntary loans. The Treasurer has himself expressed disappointment regarding the amount of money raised by war savings certificates. The reason is that, in the lower income groups, the practice of saving has never existed. I do not say that in disparagement of those who belong to the lower income groups; probably they never had money to save. Now, however, the position is different. Huge amounts of money are being put into the pockets of people who, up to now, had very little. Only the other day I was talking to a munitions worker, a sub-contractor under the cost-plus system, which the Government, previous to assuming office, condemned so roundly but which it still retains - and I learned from him that he is making £3,500 a year. And he is a fitter and turner! These people, who are receiving higher incomes than they ever had before, will not invest in loans because, as I have said, they are unaccustomed to saving. At the present time, central bank credit is increasing very rapidly. Treasury-bills and government securities held by the Commonwealth Bank increased by £22,000,000 between the 1st May and the 17th August, and at the same time the note issue - which is “ hot money “ - increased by £30,000,000. I maintain that when such conditions are evident - a shortage of consumer goods, full employment, rising prices, and the note issue disappearing into the jam-pot, while treasurybills and government securities in the central bank are mounting rapidly - it means only one thing, and that is inflation pure and simple. If inflation gets out of control it will paralyse our war effort. It will cause discontent among the community, it will be an incipient cause of strikes, and it will be diabolically unjust to the primary producers, the prices of whose products have been pegged. They will find’ that their products will buy only 50 per cent, as much as they did twelve months ago. Therefore, the Government should do everything to remove inflationary conditions as soon as possible, and it should also reduce consumer purchasing power. The Treasurer said that, while relying largely upon the voluntary efforts of the people, the Government was resolved that its demands should not be evaded. The Government appears unwilling to adopt compulsory measures, but the Treasurer’s statement suggests that the Government is prepared,, if necessary, to adopt compulsion in order to get the money it wants. Our enemies move fast. If we were at peace, there might be time to put our house in order, but we are at war with an enemy who has shown his mettle in the Malayan jungles, and in the various theatres of war in the Pacific Ocean. He fights fast and he fights hard. If our war effort wilts, if we are not prepared to do what is necessary, our friends and allies overseas may he no longer willing to give us the aid of which we stand so much in need. In Melbourne last Easter, when delay was being experienced in the “ turnround “ of ships, I heard remarks from some of our allies which, if repeated in this House, would be severely frowned upon by you, Mr. Speaker. The only way to prevent inflation is to increase the amount of money raised by loans and taxation. The Government should compel people to contribute in proportion to their incomes. It has been argued that if people in the lower income groups were taxed it would tend to reduce output. There may be some truth in that. People might ask what was the use of working so hard if all that they earned was to be taken away from them in taxes. We know what many of the workers went through during the depression. I was a member of a committee which expended £600,000 on relief measures in New South Wales, and I saw something of the sufferings of the people at that time. Therefore, I believe it would be fair for the Government to say to the people of Australia, rich and poor alike, that, for the present, they must accept some of their income in the form of deferred pay. There is a precedent for this in the system of deferred pay to soldiers. Last year, the Government came into power after the defeat of the Fadden Government on the issue of compulsory loans. “Whether we call these enforced contributions compulsory Joans, or post-war credits, or deferred payments, is a matter of little consequence; the fact is that they are necessary, and the Government should be wise enough to admit that it made a mistake twelve months ago. Only the night bef ore last we listened to an exposition by 50 per cent, of the Government’s majority on the subject of changing opinions. The honorable member for Henty (Mir. Coles) explained how he, like the chameleon, was able to change his opinions overnight. If 50 per cent, of the Government’s majority is able to change its opinion so readily, surely the Government can admit the need to change its policy in the face of a national crisis.

If it is just to withhold a part of the soldier’s pay, can it be unjust to ask the civil population to make a similar sacrifice? The pay of the single soldier is 45s. 6d. a week, added to which is 14s. a week deferred pay, making a total of 59s. 6d. a week. In addition, he has his keep, which would add at least another £1 a week to his pay, making a grand total of 79s. 6d. a week. From this total 14s. a week, or 17 per cent., is withheld from the man who goes out to defend his country, and, if necessary, to lay down his life in its defence. The estimated national income of Australians for the year 1942-43 was £930,000,000, as against £800,000,000 for the year 1940-41, when 88 per cent, of the total income went to groups in receipt of less than £1,000 a year. If the distribution were the same for this year - though probably, for the reasons I have stated, the proportion received by the lower income groups would be higher- a total of £837,000,000 would be distributed among groups in receipt of incomes of less than £1,000 a year. If 17 per cent, of that amount were withheld in the form of deferred pay, as the soldiers’ pay is deferred, it would bring to the Treasury £142,290,000, and this amount would go a long way towards relieving the Treasurer’s budgetary headaches. If 10 per cent, were withdrawn, it would yield £83,700,000, and if 5 per cent, were withdrawn the yield would be £41,850,000. Five per cent, represents ls. in the £1, which is the amount of the flat rate tax levied on every wage-earner by the Lang Government in New South Wales during the depression. It is the same as the NewZealand Government now takes from every member of the community for national security purposes.

Mr Anthony:

– In New Zealand, the total levy on incomes is 10 per cent.

Mr ABBOTT:

– Yes, and I suggest that the levy here should be 10 per cent.., also. Even if the levy were fixed at 5 per cent., it would be 12 per cent, less than is taken from the pay of the single soldier. I believe, however, that a graduated levy, equal to an all-round levy of 10 per cent, should be made, and this would yield a total of £93,000,000. Last year, voluntary savings yielded a net amount of £120,290,000. On the present national income of £930,000,000, the same rate of savings will produce an amount of £130,200,000. On Wednesday evening, the Prime Minister said that he thought that the amount which would be subscribed by voluntary loans would be approximately £200,000,000. The right honorable gentleman probably overestimated the figure and in the same way £130,200,000 is probably an underestimate of what will be collected from the community, owing to the closeness of the Japanese menace and the growing realization on the part of the people that unless they give everything to the war effort, they may lose their homes, country, nationality and even their lives. I suggest, therefore, that the amount of voluntary loans might be put at £160,000,000. Loans amounting to £160,000,000, together with £93,000,000 deferred from the distributable income, will yield £253,000,000. [Extension of time granted.]

Mr Curtin:

– Does not the honorable member consider that the deferment would considerably reduce the amount to be raised voluntarily?

Mr ABBOTT:

– It might; hut the plan is worth trying. The problem of the Government is to damp down this enormous amount of consumer purchasing power and to stop the competition of the civil population for goods now produced by man-power and resources that are needed to manufacture war materials.

If my plan were adopted, the deficit would be £47,000,000 ; but that gap might not be so difficult to bridge as one might imagine at first glance. Departmental officers should make a close examination of all State government activities. Although the States have resented interference with their sovereign rights, I contend that the right of the people to demand that everything shall be done to save the Commonwealth from destruction is of infinitely greater importance than the rights of the States. I shall help the Commonwealth Government to the best of my ability to put the States in their place, make them curtail their spending, and bow to the will of the National Parliament and the Rational Government in this hour of crisis. Any surpluses that may be discovered as the result of an inspection of State activities should be made available to the Commonwealth Government. The States, which are competitors for man-power and resources, represent consumer purchasing power, and are just as serious a menace to the war effort as is the massed purchasing power of the general community.

Another field of revenue which the Commonwealth should tap is the State transport systems. At present, the States are receiving unprecedented revenues from an increased volume of traffic due almost entirely to the enormous quantity of war materials that the Commonwealth Government is despatching over their systems.

Mr Bernard Corser:

– And paying for.

Mr ABBOTT:

– That is true. Is it not fair that the money should be diverted to the body responsible for the defence of the country? Again, the Commonwealth must assert its authority and interfere with the sovereign rights of the States. The railway systems still carry large number of people who travel purely for pleasure. The Commonwealth must check that. If people wish to travel for pleasure, they should pay increased fares, and the money should be diverted to Commonwealth revenue. Even though a most bloody and bitter war is now raging at our front door, the

States, whose sovereign rights must not be interfered with in any way, preserve competitive freight rates on their borders for the purpose of diverting goods hundreds of miles from their natural outlets so that they will travel over one State system and not assist the revenues of an adjoining State. The time has come for the Commonwealth to show the States plainly where they “get off”, and take over the State transport systems for the duration of the war. Why should the Commonwealth fatten up the State railway systems with money that is badly needed for the war effort?

Since State governments were hit in the solar plexus by the decision of the High Court on the validity of the uniform income tax legislation, they have adopted the practice of entering into new fields of taxation. For example, the Government of New South Wales recently announced its intention to impose a steeply graduated super land tax on estates, the unimproved capital value of which exceeded £5,000. The principle may be right or wrong. I am not concerned with the justification or otherwise of the proposal. But I point out that it will be, not the owners of the large estates, but the Commonwealth Government, which will pay the super tax. This is a neat piece of bushranging. When a man has frustrated one attack by the bushranger, the assailant approaches from another direction, and holds the pistol at his head. The Commonwealth should, therefore, prevent the States from entering new fields of taxation. If my proposal be adopted, the Government will almost completely close the gap of £47,000,000 between expenditure and revenue during the current financial year. I warn the Government that failure on its part to act will jeopardize the security of the nation, if it be fair to compel men to serve in the Army and the labour corps, it is also fair to compel people to use their incomes in the interests of the nation as a whole. Whether the Government is bending to political pressure from the right o.r the left, it is entirely wrong. If the Government is so embarrassed by having to submit to pressure groups, the best course for it to adopt is that which it asks of the people, namely, to achieve unity. Let us have unity in Parliament, and one Australian government to fight this war against one Japanese government, one German government, and one Italian government, because in the Axis countries there is no disunity. Only by united efforts can we smash this menace to Christianity and everything else that we hold so dear.

It was with great pleasure that I read in the budget speech the proposal to establish a mortgage bank. As a similar proposal was contained in the Fadden budget, all parties are agreed as to the necessity for creating this institution. If we cannot be united in our Parliament, we can be united regarding the establishment of a mortgage bank. It is interesting to recall that this year is the 50th anniversary of a speech by the Austrian Consul-General before the Victorian ‘Chamber of Commerce that led to the establishment in Victoria of the first mortgage bank in Australia, namely, the Credit Foncier branch of the State Savings Bank. I realize the difficulty in war-time of fully developing a mortgage hank. The Government may not he able to provide an adequate amount of capital for it, or there may be other obstacles, but I urge the Treasurer not to spoil the child at its birth. Its charter should be as wide as possible, so that the bank will in years to come play an important part in assisting primary producers. The bank should also be permitted to lend money, not only on broad acres, but also to home-builders, particularly those in rural Australia. In many country towns and small villages, housing conditions are just as bad as in the, slums of the large cities. The rural people who live under such conditions are the forgotten people of Australia. The mortgage hank should also be permitted to make loans to co-operative farming plants, irrigation trusts and similar organizations.

The possibility of making finance available to persons who wish to borrow small amounts should also be investigated. Some years ago, the Bank of Australasia established a department for small borrowers, and I understand that it has functioned to the mutual advantage of the institution and customers. How ever, this branch is conducted in a very small way. The Government should ascertain whether it is possible for the other tradings banks and the Commonwealth Bank to engage in this business. Whilst this may be a post-war matter, I hope that it will not ,be forgotten. The Royal Commission on the Banking and Monetary System found that small businesses experienced considerable difficulty in raising capital, and I consider that they should be assisted wherever possible.

Another important matter is the necessity to establish at the present time a Ministry of Primary Production and Food.

Mr Calwell:

– Does not the Minister for Commerce control that part of the national economy?

Mr ABBOTT:

– The importance of primary production requires no emphasis, but at present there is divided control in respect of primary production and the raw farm products. Apart from the Department of Commerce, the Department of Supply and Development and the “ Oap-and-Gown “ Department of War Organization of Industry are concerned in it.

Mr Calwell:

– That is a good deception of it.

Mr ABBOTT:

– These three departments control primary production and what is every body’s business soon becomes nobody’s business. The result is the extraordinary muddling that is taking place in the dairying industry, because dairy production is steadily declining and it is doubtful whether Australia will he able to discharge its obligations to Great Britain. A man who was growing beans for canning hypothecated his crop in return for an advance, but the Department of Supply and Development issued a “freezing” order which affected the person who offered the advance. The grower is now left high and dry, and the Government will not get the beans. Whilst no provision has been made for granting advances to primary producers, every assistance is extended to enterprises which desire to mine copper, or search for new lodes. To illustrate this discrimination, I quote the following extract from the

Sydney Morning Herald of the 8th September : -

Government assistance is being given the New Occidental Gold Mines No Liability which will explore shafts of copper mines formerly closed in the Cobar district. Mr. J. J. Clark, M.P., and Mr. J. McNeil, secretary of the Australian Workers Union, have been appointed Government nominees on the board of the company. [Further extension of time granted.]

– Yes, of course they did. The same thing will happen again. The workers are not hoarding their money. Examine any housewife’s budget and you will find how small a margin she has, in spite of all that the Opposition has said about the workers having more money than they have ever had before. That is true, but the only reason for its truth is the fact that they never before had nearly sufficient money. The Minister for War Organization of Industry (Mr. Dedman) has ensured that they shall not be allowed -to waste money on luxury goods, and the only thing left for them to do with whatever they have left after meeting current requirements goes towards restoring their financial equilibrium.

Thousands of workers are contributing as much as they can voluntarily to the Government’s loans and to war savings certificates. There is nothing left in their possession. Therefore, the central bank credit, under suitable safeguards, which this Government will not hesitate to apply, must be used, to finance the war. There has been a great deal of loose talk about conscription of wealth. I should like to see wealth conscripted, but I do not know how it can be. It is much more elusive than man-power, which has been conscripted, not only for the Army, but also for the Labour Corps. But efforts by this Government to conscript wealth have been hampered in every direction. Consider, for instance, the decision to limit profits to 4 per cent. So many obstacles were put in the way of that policy that .the Government was finally forced to abandon it. Honorable members opposite held up their hands in horror at the very suggestion that the manufacturers’ profits should be limited in any way. There would be no incentive for them to work, they claimed. The munitions programme would suffer, because the manufacturers would have no incentive to maintain production, to say nothing of increasing it. The concentration camp is the place for any one who would refuse to work on account of his profits being limited by governmental action. Soldiers, who declined to fight, because the smallness of their wages gave them insufficient incentive to do so, would be shot out of hand. I should welcome conscription of wealth and I urge the Government to do all it can to apply it. Let us have no more of the talk about widows and orphans when the Government comes forward with further plans for the harnessing of wealth to the war effort that marked the propaganda against the -proposal for a 4 per centlimit on profits.

Sir Frederick Stewart:

– The Treasurer admitted yesterday that that scheme was unworkable.

Mr McLEOD:

– It may have been in its original form, but I suggest that some such scheme could be operated and that provision could -be made to make a rebate to any widows and orphans who may be the possessors of stock in companies. The Government and I want to get at the big man who shelters behind the widows and orphans. If we can once harness wealth, we can go a long way towards bridging the anticipated gap between revenue and expenditure. Let us get at the great industrial concerns, the insurance companies and, especially, the hanks, which hold most of the land of Australia under mortgage. The farmers are at the mercy of the banks and are constantly getting deeper into debt. Their mortgages have not been reduced. I do not trust the economists, because their theories have always been wrong. A man of average intelligence, with experience of business or farm life, usually has a far better idea of practical economics than has any of these theorists. The country will drift into difficulties unless the Government takes early action to balance its economic affairs. I myself am prepared to make great sacrifices for the welfare of the nation, but I want my neighbours to do likewise. I .am still paying the same rate of interest on my mortgage as I paid before the war; but, owing to wartime conditions, I, like thousands of other men, will soon be unable to meet my obligations as I did previously. My equity in the property which I hold is diminishing; but I have not heard anything yet about the mortgage diminishing. I have made sacrifices, but the bank still has a mortgage on my land and property without having made any sacrifices. These financial institutions will take over more and more of our land as the war progresses without having to share our growing burdens. It is wrong that this should happen while thousands of boys, who have no material assets to defend, are dying for their country. Surely the Government will not allow this to continue. The Opposition says that it wants an all-in war effort. So do I, but I especially want it to be an all-in financial effort. I am an ordinary man, and I do not pose as an expert, but I know how the war will affect me and thousands of others like me. All that Australia needs for the prosecution of the war is a sufficiency of food and plenty of material to provide the munitions of war. We could continue to fight without money for another ten years, but if we depend on money the war will soon be over. As long as we have the manpower needed to convert the wealth of the land into food and munitions we can fight. We must divert everything to the war effort. Without money we can still produce our material needs, but without food we cannot fight. That has been proved in other countries. In 1939 the economists said that the war would not last more than six months, because Germany could not finance its effort, but Germany proved them to be wrong. That nation needs, not money, but oil, wool, wheat and other raw materials. Food matters most of all, because the German? do not want to face another hungry winter. I have great confidence in our military leaders, who are well trained and know their jobs thoroughly, and they have told us that they have confidence in our men. But these military men know very little of our economic problems. They naturally want every fit man to be in the fighting services, because they know the pathetically small size of our population, but they forget about food and raw materials. We cannot afford to put all our men into uniform while the position of our civil industries is growing worse. Men have left the rural districts to serve in the armed forces and in secondary indue tries in such great numbers that the situation of our primary industries is dangerous. Our economy is already a little out of balance and the Government must take prompt action to restore equilibrium. The surest way to break down the morale of the people is to deprive them of essential foodstuffs. A nation may be strong in armaments, but it cannot succeed if its people are hungry. I remember how. during the war of 1914-18, the retreating German armies abandoned their guns and ate the horses which pulled the limbers. They were not defeated owing to a shortage of munitions. Their morale was undermined by shortage of food, and by other hardships. The German civil population suffered even more severely; I recall the terrible privations to which the people in German-occupied France were sub jected at that time. Our position in this country is made more difficult by the great distances which separate our main centres of population. For instance, wc might have plenty of one commodity in Western Australia, but might be unable to benefit from it owing to the difficult) of transporting supplies to the eastern States, thousands of miles away. The Government must plan for the future. It is useless to wait until there is a shortage of potatoes, meat or butter before taking action. Many dairy cows have already gone through the aba ttoirs, and it will take up to two years to re-establish the herds. The Government must deal with these problems now. The farmers are willing to co-operate with it. Sheepshearing presents another problem. Many people believe that it is merely a matter of sending men into die rural areas to do the work, but it would be futile to send men who were not experienced shearers. If the sheep were not shorn, they would be at the mercy of the blowflies, and the farmers and the nation would suffer a great economic loss. Many of the men who have been called up for military service are actually a liability to the Army. They should be combed out immediately and put to work in industries where they would be of some service to the country. I know of one man who served for four months in the Army, but he could not stand up to the training, and for three months of that period he was in hospital. He was able to work before he was called up, but after he was discharged he was unfit for any sort of job. That is how a great deal of manpower is wasted. Men must be found to do jobs in the primary industries that are essential to the war effort. The primary industries need men just as urgently as the armed forces and the munitions industries. The Government must strike a fair balance as between the three demands, even if it be forced to take men out of the Army. Many men could be taken from the armed forces without reducing our fighting efficiency.

I fear that if a Tory government should again come into office in this country very little would be done to promote the interests of free education, or to provide effective laud settlement schemes, or to do many of the other things that are necessary for the progress of the country.

If any effort be made to embark upon land settlement schemes similar to those which followed the last war, I shall resist it to the utmost. I do not believe that our returned men and their wives should become beasts of burden. Yet that is what happened after the last war. In many cases, women had to cart water for even the most essential household uses. The properties of soldiers were under lien and all the revenue obtained from them was required to meet interest charges and the debts which had to be incurred. Land was bought in those days at inflated prices, and returned soldiers were put upon it under conditions which did not, give them a chance to succeed. We must avoid that kind of thing after this war. Some honorable gentlemen opposite are probably as anxious as I am to avoid such errors, but I fear that the anti-Labour parties are too much under the domination of powerful financial interests to be able to do anything effective in that regard. Under a Labour government such a state of affairs would not be tolerated. There is no need for it. The State could pay a just price for the land, being financed by the Commonwealth Bank. When the land had reverted to the Crown, it should not again be alienated. Leases could be given in perpetuity to those who took it up. Gradually that would put an end to trafficking in land and inflation of values. Under the existing system, boom prices are deliberately engineered, with the result that the purchasers of .land get into debt, from which they can never escape. When they find that they are unable to continue, and realize on the equity they have in the land, another purchaser for it is found. Dealing in land values is nothing short of a racket. It could not operate under the leasehold system, because only improvements could be sold. The effect would be to stabilize values.

Mr Dedman:

– What Ministers has the honorable member in mind?

Mr HARRISON:

– The Minister for War Organization of Industry, who is an academic socialist, and the Minister for Labour and National Service (Mr. Ward). They are the terrible twins of this Government. While the country is being fed with fair words, these Ministers are “ socking “ the public, right, left, and centre, with their efforts to give effect to the peace-time policy of the Labour movement. From time to time, members of the Opposition have submitted motions to disallow regulations that have been promulgated for the sole purpose of advancing the policy of the Labour party. Honorable members opposite do not deny it. By interjection, and by speech, they ask: “ Why should we not implement our peace-time policy when we have the opportunity to do so?”

Mr Calwell:

– My complaint is that the Government is not introducing the policy of the Labour party.

Mr HARRISON:

– The Opposition is of opinion that the Government is using its war-time authority to give effect to the domestic policy of the Labour movement.

The budget speech foreshadows a referendum in which the Commonwealth will seek increased powers, but I doubt whether it will be wise in war-time to take the risk of dividing the people on a highly controversial issue. While Australia is at war, the Commonwealth Government, may override the authority of the States, and should not be permitted to carry over war-time control into the post-war era. In my opinion, the people do not desire it, and any attempt to seek additional powers by taking advantage of the present emergency would be neither fair nor wise. In the post-war era, private enterprise and individual initiative will undertake the reconstruction. They will succeed, where socialism would fail. Unfortunately, the refusal of the Government to adopt the system of post-war credits will leave the people without money with which to rehabilitate themselves. With money circulating freely, people are spending lavishly. Whereas soldiers will receive deferred pay, civilians will not do so, and many of them will suffer. I am highly suspicious of the Government’s proposal to seek additional powers, because Ministers will use them to implement their pet theories. A solution of the post-war financial problem is a post-war credits scheme, and the Government will be driven eventually to adopt it.

From time to time, references have been made in the chamber to the difficulty which soldiers experience in purchasing supplies of tobacco and cigarettes. In my opinion, the excise on the manufacture of tobacco for the troops should be abolished. In the last war, cigarettes were distributed free of charge to the Australian Imperial Force and the British Army. To-day, the soldiers are obliged to buy their “ smokes “, and they pay “ through the nose “ for them. Under the lease-lend arrangement, the Commonwealth has imported from the United States of America tobacco leaf for which it will not be required to pay in dollars. That manufactured leaf could he made available to the soldiers free of duty. The Government has only to satisfy the Lease-lend authorities in the United States of America that the transaction is legitimate, and the fact that tobacco and cigarettes smoked by American forces in Australia are not subject to tariff duties or excise creates an excellent precedent.

Many anomalies have arisen regarding the taxation of soldiers’ pay. This morning the honorable member for Fawkner (Mr. Holt) referred to the experience of seme members of the Royal Australian Air Force a;t Darwin. They had fought in New Guinea, and in the Solomon Islands, but the Taxation Department ruled that they were not serving beyond the boundaries of the Commonwealth. That decision was ridiculous, because Australian troops who may have occupied a small island in the Pacific are not required to pay taxes. The Government should A sue, a ruling that troops who are in operational units - not operational areas - shall be exempt from taxes.

After the debacle in the Far East, I attended a dinner that was tendered to Lieutenant-General Gordon Bennett, the Officer Commanding the Australian Imperial Force in Malaya. About twenty famous war correspondents attended the function, and some of them expressed their opinions about the campaign. Each speaker paid a high tribute to the fighting qualities of Lieutenant-General Gordon Bennett, and his sound knowledge of jungle warfare. Now, that man is languishing in Western Australia, and I doubt whether the Army authorities have availed themselves of his experience for the benefit of our forces in New Guinea. One wonders why he languishes in Western Australia. He is a civilian general. He is not one of the staff corps. I do not know whether that has anything to do with his transfer to Western Australia. But all civilian generals are given a place well below the fighting line. In the la*t Avar, civilian generals were the cream of the service, and distinguished themselves. Jungle warfare has not yet finished. When we begin a counter offensive, we shall have to drive the Japanese back through the jungle through which they previously advanced.

This budget is false. The Government will have to revise it within a few months. If the Prime Minister and the Treasurer, whom I credit with having brains, are persuaded by an irresponsible minority in caucus to adhere to it. we shall suffer the worst debacle we have ever experienced.

Mr POLLARD:
Ballarat

.- I had no intention of speaking on this budget, but I am forced to do so by the unutterably disgusting game of party politics that the Opposition is playing.

I have in my possession proof of the rotten conspiracy that has been hatched by the Opposition to attack the Government, not on its merits, but for the purpose of trying to supplant it, in spite of the open offer of co-operation tendered to the Government by the Leader of the Opposition (Mr. Fadden) after the defeat of his Government. I recollect that when the right honorable member for Kooyong (Mr. Menzies) returned from abroad he made a speech in Sydney in which he deplored the “ diabolical game of party politics “. Yet we find the flock of which he is a member, aided and abetted by the Country party, engaging in a diabolical plot against the Government. For the last fortnight, we have seen evidence of the development of that plot. First, we had a motion for the adjournment of the House to discuss the wheat situation, and yesterday the subject of compulsory unionism was raised on a similar motion. The right honorable member for Kooyong, who expressed such indignation at the playing of what he described as the diabolical game of party politics, is himself not above playing that very game. He did so yesterday. He took the Labour party to task for using its period in office to put its policies into effect. Why should it not? Our policy is the only policy which will enable us to win this war.

Mr Fadden:

– The letter to which the honorable member referred was addressed specifically to some honorable members. I should like the honorable gentleman to mention the name of the honorable member whose copy he has.

Mr POLLARD:

– Never mind the name. The right honorable gentleman is “hot under the collar” because he knows that he stands condemned as the leading player in the diabolical game of which the right honorable member for Kooyong professed such abhorrence. The Leader of the Opposition unctuously held out his hand to the Prime Minister in a spirit of mock co-operation, while his other hand held the assassin’s knife with which he is seeking to stab into the Government’s back. I do not wonder at his discomfiture. The letter is in the following terms: -

Asyou are aware, the Federal Parliamentary Opposition executive met in Canberra on the 29th and 30th, July, and again in Melbourne on the 14th August, when several important subjects affecting the present Government’s administration were discussed and the views of the executive announced.

The subjects upon which the executive expressed its views following the meetings on the 29th and 30th July were-

Proposed 4 per cent, profit limitation.

Honorable members opposite did not like that.

Coal control regulations.

They did not like that either, because those regulations ensured the co-operation, instead of the antagonism, of the coalminers, whereas the honorable member for Fawkner (Mr. Holt), as Minister for Labour and National Service, was a ghastly failure in his attempts to ensure the maintenance of coal production, for the simple reason that he did not know how to handle the situation.

Merging of the Australian Imperial Force and the Australian Military Forces.

Mr Holt:

– The honorable member does not like that.

Mr POLLARD:

– If the honorable member for Fawkner had read the newspapers to-day he would have seen that the members of the Australian Imperial Force in New Guinea have accepted their colleagues in the Australian Military Forces as brothers in arms. That indicates that it does not require any merging of the two forces to make the Australian a good soldier when he is fighting on his own territory.

Taxation of soldiers’ pay.
War-time liquor control.

How well I remember the right honorable member for Kooyong making a speech in the Sydney Town Hall on his return from overseas and saying that there would have to be restriction of non-essential production. But did the right honorable gentleman then and there take action to restrict the production and consumption of liquor which has such deleterious effects on soldiers and civilians alike? Did he restrict the manufacture of cosmetics and chocolates and other such useless things? No! It required this Government to clamp down on such things.

War organization of industry.

The way in which the Minister for War Organization of Industry (Mr. Dedman) has handled that matter is an indication that this Government is determined effectively to organize this country to the maximum of its capacity for the winning of the war.

Prices and profits fixation.
Man-power.
Clothes rationing.

You have already received a detailed statement setting out our views of the executive on these matters and a further detailed statement indicating the reactions of the Prime Minister and of other Ministers, together with any further statements by myself as Leader of the Opposition.

At a meeting held in Melbourne on the 14th August, consideration was given to the following subjects: -

Compulsory unionism.

We were attacked on that subject yesterday.

Censorship.

I suppose the adjournment of the House will be moved next week to debate that, subject.

Functions of the War Council.

Now that the right honorable member for Cowper(Sir Earle Page) has been coopted to serve on that council I suppose that we shall hear something further on that subject.

War Organization of Industry Department.
Merger of the Australian Imperial Force and the Australian Militia Force.
Food supply andrural man-power.

Doubtless you will have seen in the press the views of the executive on these matters and reactions of the Government in some cases.

Apparently some Ministers just ignored the Opposition.

Detailed statements concerning same will he forwarded to you by Mr.. Byrne. Immediately Parliament re-assembles, we, as an Opposition, must be ready to put forward a strong case on every subject which calls for an expression of the views of the Opposition in the House. No doubt senators and members generally have had brought to their notice or have personal knowledge of maladministration, abuse of power, bungling and inefficiency in relation to many of the subjects which the executive has considered. In regard to the other subjects whichwe discussed, the Opposition mustbe ready to advance sound and constructive views on the floor of Parliament.

That is absolutely impossible. In the three weeks Parliament has been sitting we have not had one sound or constructive suggestion from the Opposition.

This applies particularly to the merger of the Australian Imperial Force and the Australian Military Forces, compulsory unionism, censorship, war organization, man-power, profits fixation and liquor. I would, therefore, respectfully ask you to draw up your observations under these headings and be ready to voice them in the House. Should you have information which you consider should he of value in the drafting of a case with which I might lead an attack in Parliament on any of the subjects mentioned, it would be appreciated if you would forward them to me at Parliament House, Canberra. Will you kindly regard the action suggested in this letter as a matter of urgency because only a brief time remains before the pre-sessional party meeting?

With kindest regards,

Yours sincerely.

W. Fadden.

That the House do now adjourn.

We shall next week continue the discussion of the first item of the budget, and at the first sitting I expect the committee to sit until the general debate has ended. I consider that it is imperative, in view of the programmethat the Government has planned, to dispose of this discussion at the next sitting so tha t we may proceed to consideration of the Estimates and other legislation which the Government has planned.

Mr CALWELL:
Melbourne

.- In the last issue of The Countryman, which is the organ of the Victorian Country party, a statement appears under the heading, “ Victorian Budgets Faked, Allegation by M.H.R.” I protest against the misrepresentation to which I have been subjected by this journal, both on this occasion and on another occasion. I deny that I specifically attacked the budgets of any Victorian governments in the general remarks which I made several days ago about the manner in which all budgets can be, and are on occasions, faked by the failure of governments to bring in all items of revenue and expenditure, thus presenting a false picture to the country. I merely made general remarks and stressed the fact that die surpluses which the State governments were showing to-day were not their actual surpluses; the actual surpluses were twice as large as those which were disclosed. 1 urged also that the Government should reduce the grants that were to be made to the States under legislation enacted in this chamber recently, in order that it should not have to put further imposts upon the people. However, the managing director of this paper, Mr. A. E. Hocking, has seen fit to misrepresent my statements for the purpose of carrying on his own private vendetta against the Victorian Country party government. I object to my remarks being distorted to serve the interests of an internal quarrel in that party. Mr. Hocking does not like the Victorian Premier, Mr. Dunstan, because on one occasion that gentleman removed Mr. Hocking from membership of the Board “of the State Savings Bank of Victoria. Whether Mr. Dunstan was right in doing that I do not know, but there is no reason why any section of the press in this country - <in this instance The Countryman - should be permitted to use remarks made by honorable members in the course of debates in this Parliament for the purpose of carrying on private vendettas. Some time ago Mr. Hocking caused a leading article to be written in his paper making an unprovoked attack upon me for something which I did not say, and for something which I did not do. With an ulterior motive that journal, like certain daily papers, ha3 seen fit to attack me again, and I take this earliest opportunity of protesting, and challenging this paper, which is rapidly qualifying for membership of the yellow press, to quote my remarks in controversion of what has been published. I repeat that I did not mention the Victorian budget at all, and I made no comparison of the budget of any Victorian government with that of a New South Wales government, or the government of any other State. My remarks were general, and they were addressed to what I believed to be an important public matter/ namely, the fact that to-day, whilst State governments have swollen surpluses of revenue, the Commonwealth

Government which has the responsibility for financing the war, is at its wit’s end to find money. This journal which is supposed to be the official organ of the Victorian Country party is, in actual fact, the official enemy of the Victorian Country party Government. I have no intention of permitting myself to be used by it in internal troubles. Such disputes should be confined to party conferences. It is significant that Mr. Hocking’s executive failed to call a conference of the Victorian Country party this year. Presumably he had very good reasons for not wishing to face his members.

I draw the attention of the Minister for the Army (Mr. Forde) to a matter of very grave concern to members of the Australian Military Forces, many of them returned soldiers from the last, war, who have been unfairly treated upon discharge. Last June I received a letter from one of my constituents setting out his complaint. I cite this case because I believe that it is not a singular instance, but is indicative of the general condition of affairs in the Army. This is what he said -

I was in Heidelberg Hospital for two weeks and was marched out of the Army after being boarded. I got seven days’ sick leave; then I went back to Heidelberg and the same day I was sent to Caulfield race-course, where they gave me a pass until the next day, when they gave me orders to report to my area officer, saying that he would supply me with a suit of clothes when I handed in my uniform. When I got there, I discovered they don’t issue clothes. The om er told me it is all done from Caulfield. But at that camp they say they don’t issue suits to any one except men from overseas. I have been to every place in Melbourne and I am sick and tired of running about. Nobody seems to have authority to issue me with a suit.

I point out that this man served in the last war. and again offered his services in this war, but being over age, he could not be accepted for active service in the Australian Imperial Force.

The let ter continues -

I have no clothes to wear, and I cannot get a discharge until my uniform is handed in; I am walking about in my uniform. I have no money to buy a suit, and, if I had, I have no coupons as I am in uniform and not entitled to them. My pay and my wife’s pay were stopped on the 25th June, so I am going to work on Monday in uniform.

T draw the attention of the Minister to the fact that I hara been waiting since June for a satisfactory reply. On the 14th September this man again wrote to me, as follows : -

have been wondering if yon have received any reply from Mr. Forde with reference to my else. I nm still wearing, khaki to work. 1 have heard no word about my pay book where there is still a few pounds owing to me in it, also nothing about my deferred pay, or the suit of clothes. I know Mr. Forde must be a busy man and have thousands of complaints to contend with, but I do hope he will find time to tell some one to put my case in order.

That seems to indicate that somebody whose responsibility it is to settle this question of whether members of the Australian Military Forces are entitled to suits of civilian clothing upon discharge is either unwilling or unable to make up his mind about the facts. Now that I have mentioned the case in this chamber - presumably there are many others like i t - I hope that the Minister for the Army will see that this man’s grievances are rectified, and that soldiers who are discharged after honorable service are entitled to at least a suit of clothing. I understand that the contract price for a suit of civilian clothes for discharged members of the Australian Military Forces is something like £1 13s. Gd. Surely that is not too much to give a soldier when he leaves the service. In any case, when, the soldier to whom I have referred was discharged he did not have any money with which to buy a suit, and obviously he believed that he had a grievance. Bie had no money in his pay book, and he should be under no obligation to purchase his own suit of clothes.

Mr FADDEN:
Leader of the Opposition · Darting. Downs

– I express my disgust at an incident, which occurred in committee this afternoon while the budget was being debated. The honorable member for Ballarat (Mr. Pollard) read a letter written by me, which he admitted was marked, “ Strictly confidential “. He stated that it was addressed to him. Whether it was or not, I cannot say. I make no apology for the contents of that letter. I do not believe that the Prime. Minister (Mr. Curtin), or any other reasonably minded member of the Government,, will raise any objection to it. The honorable member for

Ballarat used the letter for the purpose of supporting an argument that this side of the House was not co-operating wholeheartedly with the Government in its war effort. I do not think that any unbiased person could suggest that the letter contains any evidence of a lack of desire by the Opposition to co-operate with the Government. When the Prime. Minister was Leader of the Opposition he stated, on more than one occasion, and rightly 30, that, it was the duty of an Opposition to he vigilant, critical and constructive. It was for the purpose of assisting this Opposition to be vigilant, critical and constructive that I addressed that confidential letter to the members of my party.

Mr Menzies:

– No doubt the Prime Minister when Leader of the Opposition had confidential communications with the members of his party.

Mr FADDEN:

– Knowing the organizing ability and effective leadership of the Prime Minister, I have no doubt that he took_ similar action when he was Leader of the Opposition, but no one doubted for a moment his desire to co-operate effectively and properly with the government of the day in connexion with the war effort. I challenge any honorable, member to prove that, in any respect whatsover, this Opposition has not whole-heartedly cooperated with the Government in the making of an effective war effort, and that it does not desire to continue to do so. That does not mean that the Opposition should be a rubber-stamp, and so fail to discharge effectively its duty and responsibility to the people of Australia. This Opposition represents 50 per cent, of the people of Australia, and it has a duty to criticize the administration of the Government and to scrutinize the legislation submitted to Parliament. It was with the object of discharging that obligation that I wrote the circular letter which was improperly, unfairly, and without warrant quoted by the honorable member for Ballarat this afternoon.

Mr BECK:
Denison

.- Last Thursday I asked the Prime Minister (Mr. Curtin) a question without notice in relation to the man-power position in

Tasmania. The right honorable gentleman requested rue to place it on the notice-paper. I did so, and on Friday last J. received a reply to the effect that inquiries were being made and a reply would be furnished to me as early as possible. Only a few weeks ago an honorable senator published in the Hobart Mercury a report of a consultation he had had with the Prime Minister on this subject. He pointed out that the Prime Minister had said that action had been taken to stop the recruitment of labour in the direction indicated. If it was possible for the honorable senator to obtain an answer from the Prime Minister and to publish a report on the subject in a Tasmanian newspaper a fortnight ago, why has it not been possible for the right honorable gentleman to give me a reply to a question which I placed on the notice-paper a week ago? I appreciate the fact that the Prime Minister is very busy, and ! have no desire to hinder him in any way whatever; but as an honorable senator and a member of his own political party could obtain a reply to a question on this subject, I wish to know why I have not been able to get one.

Mr STACEY:
Adelaide

.- During my speech on the budget on Thursday of last week, I referred to what I termed the unnecessary spending of public money in Canberra. My statement was severely criticized by the Minister for the Interior (Senator Collings), who denied the truth of what I had said. I assure honorable members that I am not given to the telling of falsehoods or to the making of statements for which there is no foundation in fact. I claim the right, as a member of Parliament and as the representative of the electors of Adelaide, to criticize whatever government may be in office if I think it deserves criticism. When I sat on the other side of the chamber .1 criticized the Government I supported, just as I have since criticized this Government. I was surprised and disappointed by the attack made on me by the Minister for the Interior.

On the same occasion I said something about the use of motor cars by Ministers. The Minister for the Interior, in reply, mid definitely that no government motor car had been sent to Melbourne from Canberra since last November which was not propelled by producer-gas. There are Ministers present who know that my statements are correct.

Mr Conelan:

– The Minister’s statement was true.

Mr STACEY:

– The honorable member knows nothing about the subject. 1. have two eyes and I also have witnesses. The cars were seen going a way from Canberra, and they were seen coming back. If they were equipped with producer-gas units, the work was done somewhere on the journey. The Prime Minister has asked the people to co-operate in an austerity campaign. I am heart and soul with him in that matter. I want Ministers, honorable members opposite, and honorable members on this side of the chamber to be with him, too. In my view, the Government should set an example. Two motor cars did go from Canberra to Melbourne as I stated, and they were propelled by petrol and not producer-gas. Some people say, “Let the past die in the past” but I say that we ought to do what is right now without waiting for the future.

Mr Conelan:

– We shall not do that.

– I claim that every word is true; and the honorable member knows that it is.

Mr CONELAN:
Griffith

.- Most of the statements made by the honorable member for Adelaide (Mr. Stacey) are incorrect. I have discussed this matter, not only with the honorable member, but also with the Ministers concerned. If the statements made were true, I should be totally opposed to such action by Ministers; but I have consulted the transport officers and have ascertained that, with the exception of an army car used in Western Australia, all of the cars engaged on interstate trips by Ministers have been fitted with producer-gas units. These units are not placed on any army cars.

Mr Marwick:

– They are used on at least two in Western Australia.

Mr CONELAN:

– The honorable member for Adelaide, when discussing the biggest budget ever presented to this Parliament, introduced the most trivial complaints imaginable. He objects to the painting of the ceiling of the dining room at the Hotel Kurrajong at a cost of £48. The expenditure, even according to the honorable member, was only £120. The honorable member laid on the Minister for the Interior (SenatorCollings) the blame for the expenditure of money on recarpeting the Hotel Canberra. That carpet was purchased by the brewery which controls the hotel, and the Minister hadnothing to do with the matter. The carpet was already manufactured and it cost only half the sum mentioned by the honorable member - £900. I heard the right honorable member for Kooyong (Mr. Menzies) the other night charge the Treasurer with thinking of a number and then doubling it. That, apparently, is what the honorable member for Adelaide has done.

I have inquired into the honorable member’s statement concerning motor cars used by Ministers on interstate journeys, and I find that it is incorrect. All the cars used on interstate trips are fitted with producer-gas units. The honorable member could have obtained that information from the transport office. During the term of office of the last Government, and until shortly before the present Government came into power, many government motor cars without producer-gas units were used in all parts of Australia.

Mr Stacey:

– That was before the war.

Mr CONELAN:

– That is not so. A former Minister who now sits on the Opposition side frequently used a car between Canberra and Sydney, and when he was in Sydney the car was freely used for the convenience of his wife and family. The driver, while he remained in Sydney, received a travelling allowance of 12s. 6d. a day, which increased his wage to £850 for the year. Another Minister had a car in Sydney in similar circumstances; the driver was taken from his home in Canberra and was paid an allowance of 12s. 6d. a day for seven days a week for a period of approximately seven months. No Minister of the present Government has done that sort of thing. The position became so bad that the transport drivers under the control of the Department of the Interior petitioned for the institution of a roster system, so that every body would be treated fairly and the choice of drivers would not be governed by their personal appearance. Provision to this effect was incorporated in the award governing their conditions of labour. The sort of attack to which we have listened could be made only by a mountain of flesh, with the brain of an insect, who is observing austerity by taking longer steps so that he will not wear out the soles of his boots; yet, according to the honorable member for Ballarat (Mr. Pollard), this samegentleman “backs up “ for four plates of porridge at the Hotel Kurrajong at breakfast. Had he taken the trouble to check up, he would have learned the facts. Those who live in glass houses should not throw stones. Members of the Opposition ought to investigate the doings of their own Ministers and members of the Advisory War Council before making such attacks on Ministers of the present Government.

Mr CURTIN:
Prime Minister · Fremantle · ALP

– in reply - I assure the honorable member for Melbourne (Mr. Calwell) that I shall ascertain the position in respect of the matter that he has mentioned.

There seems to be some misunderstanding in regard to the subject referred to by the honorable member for Denison (Mr. Beck). I have a partial reply to the question that he placed on the noticepaper, but it does not deal with the matter adequately. I hope to make a full answer to him next week. The letter sent to a member of another place did not deal with precisely the same subject.

All that I have to say about the austerity campaign is that I wish it were applied to the speeches of honorable members.

Question resolved in the affirmative.

page 565

PAPERS

The following papers were pre sented : -

National Security Act -

National Security (Capital Issues) Regulations - Order - Exemption.

National Security (Emergency Control) Regulations - Notice - Military Powers during emergency.

House adjourned at 4.43 p.m.

page 566

ANSWERS TO QUESTIONS

The following answers to questions were circulated: -

Mr Scully:
ALP

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

At the 30th June, 1942, the amounts paid to the States for elimination of marginal areas were -

An additional amount of£115,000 has been allocated to Western Australia.

New South Wales figures do not include . 128 vacated farms of which transfer is incomplete, and 281 vacated farms not yet allotted. In Victoria, 51 farms have been vacated, but the permanent rehabilitation of settlers remaining is not yet complete

Mr Rosevear:

r asked the Minister representing the Minister for the Interior, upon notice -

What are the names and ages of the male employees of the Allied Works Council in Sydney, including the executive officers?
What were their previous occupations?
How many are of military age and what were the reasons for exemption from military service ?
How many would be normally eligible for call-up on allied works if not employed in the offices ?

Mr Lazzarini:
ALP

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

There are approximately 800 male employees of the Allied Works Council in Sydney, including the executive officers. 2, 3 and 4. In view of the work involved, it is not practicable to furnish the information asked for. If the honorable member will furnish the names of the individuals in whom he is interested to the Minister for the Interior, arrangements will be made to supply him with such information as is available.

Mr CURTIN:
FREMANTLE, WESTERN AUSTRALIA · ALP; FLP from 1934; ALP from 1936

s. - On the 9th September, 1942, the honorable member for Dalley (Mr. Rosevear) asked me a question, without notice, and later, on the motion for the adjournment of the House, made statements concerning the operations of the Allied Works Council. The Minister for the Interior has had investigations made into the various matters brought forward by the honorable member and has furnished the following report: -

The graving dock is a job which comes entirely under the control of the Allied Works Council. It can therefore scarcely be accused of “ interfering” with its own job. The decision to take certain men away was made by the service chiefs, who instructed the Allied Works Council that a. number of men were required for curtain works which were regarded as of even higher priority than the graving dock. The service chiefs indicated that, if necessary, to secure the numbers required, men should be taken off the graving dock. Naturally, some interference with the work of the dock occurred as a result. Work was not, however, stopped in any section, and action to restore the former position as promptly as possible was taken immediately.

Regarding the statement that atax bookkeeping system was endangering government funds and that vouchers entitling wives of Civil Constructional Corps members to £6 a fortnight were being distributed to dependants of persons who were not members of the Civil Constructional Corps, the fact is that the “ voucher “ is a printed form which is sent to the wife of a. member of the Civil Constructional Corps. It is intended that she should sign the form herself, certifying that she is the person to whom, in the event of an allotment being made, the money should be addressed. The form is not an order to receive money, but simply one to enable the Allied Works Council to obtain a specimen signature of the allottee, thus protecting- Commonwealth funds. The actual payment of an allotment is made by cheque and the cheque form is quite unmistakably a cheque and nothing else. It could not be confused with a “voucher”.

Concerning the statement that men called up would not be capable of standing up to hard work under the conditions of a summer in North Australia, particular care has been taken, in sending men to Queensland, to send only those men who have regularly been engaged on work of a nature similar to that on which they will be employed when they go north. The council has not sent any men who have been called up from other occupations, and it is a fair assumption that men who, over a long period, have been engaged either as plant operators or labourers without physical ill effects becoming apparent, should be considered, at sucha critical time as the present, tobe capable of continuing to perform this work, even in the north, for a period of three months. In all cases where a man has felt that his health is such as to unfit him for work under Queensland conditions it has been open to him to appeal on medical grounds against transfer. In all cases where the man has been working close enough to Sydney to make it possible, he has been examined by the two doctors who are permanently attached to the New South Wales head office of the corps, and, if in their opinion, he has not been medically fit, then his appeal has been granted. In other cases, where the man has been stationed at a spot too remote from Sydney to make it possible for him to call at the office for medical examination, the council has accepted the certificate of a private practitioner. It is a fact that a great number of men have been exempted from transfer on medical grounds.

Regarding the accusation that men are sent away at 48 hours’ notice, this is due to urgency. Jobs cannotbe commenced quickly and at the same time men be given extended notice to work. In the majority of cases, the men have been given a full week’s notice. Where they have been working at a considerable distance from their homes, they have been allowed, when they have desired it, one week’s leave of absence, for two days of which they have received full pay. The purpose of this has been to allow them a reasonable time in which to make any domestic arrangements which might be necessary. In somecases, the very urgency of the job and difficulties associated with getting men in particular skilled categories has made it impossible to allow the full period of notice which might be considered desirable. These cases, however, are in a decided minority.

It is not correct that men called up for service in the Civil Constructional Corps have no right of appeal, and that excessive hardship is being imposed by the call-up. Long before any complaint was made the machinery had been established which permitted appeals right through to a special magistrate, and special magistrates had heard hundreds of cases in New South Wales and Victoria. Another special magistrate was later appointed for Queensland, too. Actually only50 per cent, of the men called up are found to be suitable for enrolment.

Mr Blackburn:
BOURKE, VICTORIA

asked the Minister representing the Minister for Trade and Customs, upon notice -

To what extent are powers of price-fixing delegated by his department to State and local authorities’?
What is the reason for the present high prices of fruit and vegetables?

Mr Beasley:
ALP

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

The control of prices is administered jointly by the Commonwealth and the States. Deputy Prices Commissioners are appointed by the Commonwealth on the recommendation of the State governments and the Prices Commissioner has made full use of the facilities offered by State authorities controlling prices before the war. In some instances, such as milk boards and State authorities controlling gas prices, no change has been made in prewar practice except that the authorities concerned work in collaboration with the Prices Commissioner. In other cases, such as the Wheat Products Stabilization Committee, determinations are made by the Prices Commissioner after report by the State authority concerned. No delegations of authority have been given to local authorities and all prices fixed by local authorities are now subject to control under the National Security (Prices) Regulations.
Adverse seasonal conditions during the early part of the year, increased demand for vegetables on account of higher spending power of the civil population, a new and heavy demand for vegetables for processing to meet the needs of the armed forces and interruptions to transport interfering with supplies are the principal reasons for higher prices for fruit and vegetables than normally obtain at this time ofthe year.

Baking Conditions

Mr Holt:

t asked the Prime. Minister, upon notice -

Is it a fact, as reported, that the Government will appoint a select committee to investigate baking conditions in the Commonwealth ?
If so, when will the committee he appointed ?
Can he indicate the terms of reference for the committee’s investigation?

Mr Curtin:
ALP

– The answers to the honorable member’s questions are - 1, 2 and 3. This matter has been referred by the Government for the attention of my colleague the Minister for War Organization of industry who proposes to set up a committee representative of all interests concerned.

Melbourne Fire Brigades

Mr Blackburn:

n asked the Prime Minister, upon notice -

Has he received a copy of a resolution carried on the 17th August, 1942, by a meeting ofrepresentatives of the municipalities comprised within the metropolitan fire district of Melbourne?
Will he take steps to ensure that the permanent and partially trained staffs of the Metropolitan Fire Brigade of Melbourne, as well as the number of auxiliary firemen already trained throughout the metropolis of Melbourne, shall be maintained at their present strength?
Will he take steps to ensure that for the protection of the metropolis of Melbourne against fire caused by enemy action at least 1.000 men shall be made available for training by fire-fighting experts?

Mr Curtin:
ALP

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

Yes. 2 and 3. My colleague, the Minister for Home Security, in reply to a similar question by the honorable member for Henty, made a statement in regard to this matter. I refer the honorable member to that statement which appears in Hansard on the 9th September, 1942, and which sets out the present position of the matter.

Australian Army : Disembarkation Leave

Mr Francis:
MORETON, QUEENSLAND

s asked the Minister for the Army, upon notice -

Is it a fact as reported in Tuesday’s press that the period of disembarkation leave for members of the Australian Imperial Force has been increased to 28 days, including travelling time?
If so, will he consider the case of those members whose leave was limited to seven days, plus travelling time, with a view to granting them further leave on the basis upon which longer leave was granted to members who returned to Australia recently?

Mr Forde:
ALP

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

It is not true, as reported in a section of Tuesday’s press, that the period of disembarkation leave for members of the Australian Imperial Force has been increased to 28 days, including travelling time.The actual period of leave granted is fourteen days, plus travelling time, the total period of absence, including leave and travelling time, not to exceed 28 days in all. Members of the Australian Imperial Force who returned to Australia some months ago, have been granted seven days’ leave to their homes, plus travelling time, the total period of absence, including leave and travelling time, not to exceed 21 days in all. This period was considered to be the maximum compatible with the situation then prevailing.
In view of the present serious war position, it is not intended to make a further grant of disembarkation leave to those personnel.

Tasmania: War Industries.

Mr Curtin:
ALP

n. - Yesterday, the honorable member for Darwin (Sir George

Bell) asked me the following question, without notice: -

Will the Prime Minister lay upon the table of the House the report of the committee that is inquiring into war industries as affecting Tasmania?

The report is receiving the attention of the Government. The question as to whether the contents will be made available to honorable members will be determined when the recommendations made in the report have been considered.

Public Service - Retirements.

Mr George Lawson:
Minister Assisting the Postmaster-General · BRISBANE, QUEENSLAND · ALP

n. - On the 11th September, the honorable member for Denison (Mr. Beck) asked the following question, without notice : -

In view of the acuteness of the man-power position, and the Government’s appeal to persons reaching the retiring age not to retire, and to others who have retired to return to work if that be possible, will the Minister representing the Postmaster-General insist that section 86 of the Commonwealth Public Service Act, which deals with the age of retirement, shall be strictly adhered to?

The Postmaster-General has supplied the following answer: -

The present policy regarding section 86 retirements has been arrived at after consideration of the general staffing situation, and of the claims of younger officers of the Service. This policy provides that officers shall be retired at the normal retiring age, and their subsequent employment (subject to fitness and willingness to be employed) confined to -

Positions in which it is customary in normal times to engage temporary assistance, or

Special positions that have arisen through the war in which their services can be profitably used, but which are not of a permanent character.

International Sugar Agreement

Mr Calwell:

l asked the Minister representing the Minister for Trade and Customs, upon notice -

Will he lay on the table of each House of the Parliament a copy of the International Sugar Agreement, signed in London in May, 1937, and recently renewed by protocol for two years from the 31st August, 1942, and to which protocol the signature of the representative of the Government of Australia is a ttached ?

Mr Beasley:
ALP

– The Minister for Trade and Customs has supplied the following answer : -

A copy of the 1937 agreement was tabled on 17th June, 1937. Acopy of the protocol will be tabled in both Houses at the next sittings.

Trading Banks: Branches

Mr Calwell:

l asked the Treasurer, upon notice -

Will he supply the latest information in his possession on the series of questions asked by the honorable member for Melbourne on the 29th October, 1941, concerning the number of towns in Australia with 1, 2, 3, 4, 5, 6, 7 or more branches of the trading banks?

Mr Chifley:
ALP

– The figures will be brought up to date, and a reply to the question will be furnished as early as possible.

Mr.Rosevear asked the Minister for War Organization of Industry, upon notice -

How many branches of each of the banks operating in Australia are at present open for business ?
How many branches of each of those banks have been closed to date under the Government’s rationalization scheme ?
Was there any radical difference between the methods applied by his department in bringing about rationalization of banking and those applied to other industry?
What are the outstanding causes of delay in rationalizing the private banks?

Mr Dedman:
ALP

n. - I desire to advise the honorable member -

From information supplied by the trading banks, the number of branches, exclusive of agencies, which ore at present open for business is approximately as follows: -

Finality has not yet been reached in regard to a rationalization scheme for the banks, but the following closures have been made by the various trading banks since the initial conference with the Department of War Organization of Industry in April: -

No.
The outstanding cause of delay in presenting on acceptable scheme to my department has been the difficulty of obtaining agreement among the trading banks as to which branches should be closed with advantage to the War effort.

Cite as: Australia, House of Representatives, Debates, 18 September 1942, viewed 22 October 2017, <http://historichansard.net/hofreps/1942/19420918_reps_16_172/>.

View PDF View XML View in Voyant

House of Representatives18 September 1942

QUESTION

EVICTION OF SOLDIER’S DEPENDANTS

Mr CONELAN:GRIFFITH, QUEENSLAND

Mr LAZZARINI:Minister Assisting the Treasurer · WERRIWA, NEW SOUTH WALES · ALP

QUESTION

PIG INDUSTRY

Mr BERNARD CORSER:WIDE BAY, QUEENSLAND

Mr SCULLY:Minister for Commerce · GWYDIR, NEW SOUTH WALES · ALP

QUESTION

AUSTRALIAN ARMY

Mr BARNARD:BASS, TASMANIA

Mr FORDE:Minister for the Army · CAPRICORNIA, QUEENSLAND · ALP

Mr CALWELL:MELBOURNE, VICTORIA

Mr CURTIN:Prime Minister · FREMANTLE, WESTERN AUSTRALIA · ALP

Mr ROSEVEAR:DALLEY, NEW SOUTH WALES

Mr CURTIN:ALP

Mr Rosevear:

Mr CURTIN:

Mr Rosevear:

Mr CURTIN:

Mr CURTIN:

Mr CURTIN:ALP

Sir FREDERICK STEWART:PARRAMATTA, NEW SOUTH WALES

Mr FORDE:ALP

Mr CALWELL:

Mr FORDE:

QUESTION

AC2 FALSTEIN

Mr DRAKEFORD:Minister for Air · MARIBYRNONG, VICTORIA · ALP

QUESTION

MUNITIONS

Mr MORGAN:REID, NEW SOUTH WALES

Mr CURTIN:ALP

Mr MORGAN:

Mr WARD:Minister for Labour and National Service · EAST SYDNEY, NEW SOUTH WALES · ALP

QUESTION

COMMUNISM

Mr COLLINS:HUME, NEW SOUTH WALES

Mr FADDEN:DARLING DOWNS, QUEENSLAND · CP

QUESTION

ARMY HORSE TRANSPORT AT BALLARAT

Mr POLLARD:BALLAARAT, VICTORIA

Mr FORDE:ALP

QUESTION

ALLIED WORKS COUNCIL

Mr HOLT:FAWKNER, VICTORIA

Mr CURTIN:ALP

Mr Holt:

Mr CURTIN:

QUESTION

CANTEEN AT RUTHERFORD MUNITIONS FACTORY

Mr JAMES:HUNTER, NEW SOUTH WALES

Mr HOLLOWAY:Minister for Health · MELBOURNE, VICTORIA · ALP

QUESTION

WHEAT POOLS

Mr MARWICK:SWAN, WESTERN AUSTRALIA

Mr SCULLY:ALP

QUESTION

INCOME TAXATION

Mr WILSON:WIMMERA, VICTORIA

Mr CHIFLEY:Treasurer · MACQUARIE, NEW SOUTH WALES · ALP

Mr HOLT:

Mr CHIFLEY:

QUESTION

DEHYDRATION OF EGGS

Mr ARCHIE CAMERON:Minister for Aircraft Production · BARKER, SOUTH AUSTRALIA · ALP

Mr SCULLY:ALP

COMPULSORY TRADE UNIONISM

Mr HARRISON:WENTWORTH, NEW SOUTH WALES

Mr CURTIN:ALP

Mr Marwick:

Mr CURTIN:

Mr McEWEN:INDI, VICTORIA

Mr CURTIN:

Mr McEwen:

Mr CURTIN:

Mr McEwen:

Mr CURTIN:

Mr JOLLY:LILLEY, QUEENSLAND

House of Representatives
18 September 1942

Mr CONELAN:
GRIFFITH, QUEENSLAND

Mr LAZZARINI:
Minister Assisting the Treasurer · WERRIWA, NEW SOUTH WALES · ALP

Mr BERNARD CORSER:
WIDE BAY, QUEENSLAND

Mr SCULLY:
Minister for Commerce · GWYDIR, NEW SOUTH WALES · ALP

Mr BARNARD:
BASS, TASMANIA

Mr FORDE:
Minister for the Army · CAPRICORNIA, QUEENSLAND · ALP

Mr CALWELL:
MELBOURNE, VICTORIA

Mr CURTIN:
Prime Minister · FREMANTLE, WESTERN AUSTRALIA · ALP

Mr ROSEVEAR:
DALLEY, NEW SOUTH WALES

Mr CURTIN:
ALP

Mr CURTIN:
ALP

Sir FREDERICK STEWART:
PARRAMATTA, NEW SOUTH WALES

Mr FORDE:
ALP

Mr DRAKEFORD:
Minister for Air · MARIBYRNONG, VICTORIA · ALP

Mr MORGAN:
REID, NEW SOUTH WALES

Mr CURTIN:
ALP

Mr WARD:
Minister for Labour and National Service · EAST SYDNEY, NEW SOUTH WALES · ALP

Mr COLLINS:
HUME, NEW SOUTH WALES

Mr FADDEN:
DARLING DOWNS, QUEENSLAND · CP

Mr POLLARD:
BALLAARAT, VICTORIA

Mr FORDE:
ALP

Mr HOLT:
FAWKNER, VICTORIA

Mr CURTIN:
ALP

Mr JAMES:
HUNTER, NEW SOUTH WALES

Mr HOLLOWAY:
Minister for Health · MELBOURNE, VICTORIA · ALP

Mr MARWICK:
SWAN, WESTERN AUSTRALIA

Mr SCULLY:
ALP

Mr WILSON:
WIMMERA, VICTORIA

Mr CHIFLEY:
Treasurer · MACQUARIE, NEW SOUTH WALES · ALP

Mr ARCHIE CAMERON:
Minister for Aircraft Production · BARKER, SOUTH AUSTRALIA · ALP

Mr SCULLY:
ALP

Mr HARRISON:
WENTWORTH, NEW SOUTH WALES

Mr CURTIN:
ALP

Mr McEWEN:
INDI, VICTORIA

Mr JOLLY:
LILLEY, QUEENSLAND

Mr JOLLY:
LILLEY, QUEENSLAND · UAP

Mr BECK:
DENISON, TASMANIA

Mr FORDE:
ALP

Mr SCULLY:
ALP

Mr ARCHIE CAMERON:
ALP

Mr ANTHONY:
RICHMOND, NEW SOUTH WALES

Mr SCULLY:
ALP

Mr BEASLEY:
Minister for Supply and Development · WEST SYDNEY, NEW SOUTH WALES · ALP

Mr DEDMAN:
Minister for War Organisation of Industry · CORIO, VICTORIA · ALP

Mr CURTIN:
Prime Minister · Fremantle · ALP

Mr CHIFLEY:
Treasurer · Macquarie · ALP

Mr CALWELL:
Melbourne

Mr BECK:
Denison

Mr CHIFLEY:
Treasurer · Macquarie · ALP

Mr ABBOTT:
New England