Senate
26 July 1907

3rd Parliament · 2nd Session



The President took the chair at 10.30 a.m., and read prayers.

page 1023

QUESTION

THE TARIFF

Senator ST LEDGER:
QUEENSLAND

– I desire to ask the Vice-President of the Executive Council, without notice, whether, in view of the fact that the month of August is a very favorable time for the senators for Queensland to visit their constituents, he can give the Senate an assurance that the Tariff Bill will not.be brought down before the 31st August?

Senator BEST:
Vice-President of the Executive Council · VICTORIA · Protectionist

– I can give no such assurance.

page 1023

QUESTION

VANILLA

Senator CHATAWAY:
QUEENSLAND

asked the Vice-

President of the Executive Council, upon notice -

What were the weights and value of vanilla imported into Australia for the year ending 31st December, 1906 : (1) In the form of dried or cured beans; (2) in the form of essences of other products of the bean?

Senator BEST:
Protectionist

– The answer to the honorable senator’s questions is as follows -

It is regretted that the information desired cannot be given as Vanilla beans are included under the general headings of Drugs and Chemicals, and essences extracted from the beans are classed as Spirits - Essences, Extracts, &c.

page 1023

JUDICIARY BILL

Bill read a third time.

page 1023

KALGOORLIE TO PORT AUGUSTA RAILWAY SURVEY BILL

Senator BEST:
Vice- President of the Executive Council · Victoria · Protectionist

.- I move -

That the Bill be now read a second time. “The object of the Bill is - to authorize the survey of route for a railway to connect Kalgoorlie, in the State of Western Australia, with Port Augusta, in the State of South Australia.

Senator Dobson:

– I rise to a point of order. I submit that the Bill cannot be proceeded with until the condition precedent laid down in the Constitution has been carried out. Section 51 of the Constitution enumerates thirty-nine subjects in respect of which the Parliament has power to legislate, and in respect of one subject alone - the subject-matter with which the Bill deals - it is prescribed that certain consent must be given. The section says -

The Parliament shall, subject to this Constitution, have power to make laws for the peace, order, and good government of the Commonwealth with respect to -

  1. Railway construction and extension in any State, with the consent of that State.

I think that the intention of the provision is as plain and clear as it could be made. My point is, that the condition precedent to enable my honorable friend to take a single step in regard to the subject-matterof the Bill has not been observed. We know from the answer which he gave to a question yesterday, that the Government of South Australia are deliberately withholding their consent to the construction of the railway, and that the only thing they have done, according to certain telegrams and letters, has been to reserve to themselves a free hand. Will my honorable friend correct me if I am wrong?

Senator Pearce:

– They have given their consent to a survey.

The PRESIDENT:

– Order ! I ask the honorable senator to allow Senator Dobson to proceed without interruption.

Senator Dobson:

– I gather from his silence that the Vice-President of the Executive Council admits that so far from the Government of South Australia having consented to the construction of the line, they have addressed to the Government of the Commonwealth certain letters and telegrams, in which they have reserved to themselves a free hand, and every honorable senator must realize that they never will consent unless they get their own terms. On two different occasions, sir, your predecessor ruled against my point of order, and the question arises whether you will feel bound to follow that ruling, or you will take an independent judgment. No member of the Senate had a greater respect for the late President and his great knowledge concerning these matters than I had, but I never could see the force or the righteousness of his ruling. I never could see the common-sense of it, and I assert most emphatically that it is not the duty of the presiding officer of a Legislative Chamber to leave to the Government the responsibility of proceeding with any measure they may introduce when its constitutionality is called in question. I contend that when a condition precedent to legislating is laid down, his duty is to see– that it has been fulfilled, and that if he does not do so he is deliberately, with his eyes open, allowing business to be considered which ought not to be entertained until the condition precedent has been complied with. Let me point out to you, sir, the complications and the illegalities which may occur if the ruling of the late President is followed. If this Bill be passed, I contend that you will be putting the Government in the position of not being able to carry out a Federal Act of Parliament, because the consent of South Australia will be wanting, and the moment a surveyor sets his foot upon its territory he may be proceeded against for trespass. I should like the VicePresident of the Executive Council to say whether that is not good law. What right has a Commonwealth surveyor to go to South Australia and begin to put in pegs and cut up the ground when it has not only not consented to the construction of a railway, but we have very good reason to believe will not consent unless it secures the route -and the gauge it desires ? Again, sir, if you follow the ruling of the late President you will be placing the AuditorGeneral in a very difficult position. He has to audit the accounts: I do not know whether or not he can look behind an Act of Parliament, but if .£20,000 is authorized to be spent on surveying a route, he will see at once that the consent of the State or States concerned is required, and he will recognise that if that condition has not been observed, the whole of the money may be absolutely wasted. Proceeding a step further, I will take it for granted that nobody is prosecuted for trespass, and that South Australia will willingly allow us to spend all the money we please, knowing that inasmuch as it has not complied with the condition precedent prescribed in the Constitution, it cannot be compelled thereafter to consent to the construction of the line. If you, sir, do not uphold my point of order, you will allow the States of South Australia and Western Australia to appropriate £20,000 of the people’s money, although we have reason to believe that every shilling of it may be wasted, and that the Government of South Australia may want the route to be surveyed again, and no end of changes to be madeIt may be that the very moment the Commonwealth begins to spend the money, and the first pegs are driven into the ground,, the people of South Australia having madeup their minds secretly-

Senator Pearce:

– Is the honorable andlearned senator in order, sir, in discussing, the terms of the Bill when he is submitting that it is unconstitutional ? I contend that he is out of order when he is. discussing what the people of South Australia’ mav think about the matter?

The PRESIDENT:

– What I understood from Senator Dobson was that he desired to point out to me that if I ruled against this point of order certain matters might come up later on which would! show that the action of the Senate was nugatory.

Senator Dobson:

– And that we were wasting money.

The PRESIDENT:

– Exactly. Thehonorable and learned senator may to a certain extent explain his position in taking the point of order, but, of course, he w il not be in order in discussing whether or not we should grant the money. He assumes that the Senate has no right to deal with the Bill at the present time, and he is justified in giving his reasons for that assumption, but he must not debate the Bill itself. I hope that he will confine his remarks closely to the point of order.

Senator Dobson:

– I had no intention to depart from the point of order. I desired to point out that if the ^20,000 were spent the money might be wasted, inasmuch as we have not obtained the consent of South Australia.

The PRESIDENT:

– The honorableand learned senator will see that if it is within the power of the Parliament’ to legislate in that way, I cannot consider what may be the effect of the legislation. The money may be thrown away absolutely, but that is not my concern. The only, point I have to consider is whether, as a matter of order, the- Bill is rightly before the Senate and may be proceeded with. The Senate, of course, may take the honorable and learned senator’s argument as a reason why it should not pass the Bill.

Senator Dobson:

– Surely, sir, I can refer to certain matters to assist you in making up your mind?

The PRESIDENT:

– I am anxious to> hear the honorable and learned senator.

Senator Dobson:

– I have mentioned that the condition precedent - the consent of South Australia - is absent, and surely I . have the right to point out that one of the consequences will be that the whole of this money will be lost.

The PRESIDENT:

– No, I think not. That may be a reason for refusing to pass the Bill,’ but it cannot- affect my mind in considering this question of order.

Senator Dobson:

– Going back to the question of order, I would ask whether the Constitution is to be read and construed in a way different from that in which other legal documents are read and construed ? There are quite a number of matters in connexion with which certain preliminary conditions must be fulfilled before they can be proceeded with. I take a common case under the Constitution of Tasmania, and remind honorable senators that there no money can be voted without a message from the Crown. I have frequently known the State Treasurer, when moving some vote at the request of friends, to be met with the question “ Have you got a message from the Governor?” and because there has been no message the whole matter has had to be postponed’.

Senator Trenwith:

– Is not this a matter with which the Standing Orders deal, and not a constitutional question?

Senator Dobson:

– The Standing Orders do not deal with this matter. When a certain procedure is laid down by the Constitution, the Standing Orders cannot abrogate that procedure.

Senator Pearce:

– The late President’s ruling deals with, the matter.

Senator Dobson:

– In connexion with many appeals in a court of law, a con,dition precedent is often the deposit of a certain sum of money, and the Appeal Court will not consider the appeal until the condition precedent has been fulfilled. If the Legislature is given power to do a certain thing on a certain consent being given, are we to understand that in a particular case the provision of the Constitution is to be overruled, and the action taken without the necessary consent being obtained ? ‘ We know that the States have almost sole control of the railways, and the consent of the States concerned should’ be had to this proposal before the measure is introduced. I am quite sure, sir, that with your legal knowledge you can .imagine scores of complications which I have not pointed out, but which might arise if the Constitution is not observed. How useless our written Constitution would be if this Bill could now be proceeded with, notwithstanding the fact that the condition precedent provided for in the Constitution has not been fulfilled ? Honorable senators have heard the statement of the VicePresident of the Executive Council that certain telegrams and letters have been received to the effect that South Australia would not give her consent to the construction of the : line unless she were given a voice in the matter. In my opinion, it is not a proper position for the leader of the Senate to take up ; it is really a gross wrong on his part to try to ram this Bill down our throats.

The PRESIDENT:

– The honorablesenator is not in order in saying that.

Senator Dobson:

– I have said all I wish to say at present on the point of order. The matter involved “is a* very simple one, and I therefore hope that lay members, as well as legal members of the Senate, will be prepared to express their views upon it. . ‘

Senator Best:

Senator Dobson has very properly said that the point of order raised is a very simple one. It is so simple that the marvel is that the honorable senator could possibly have suggested it to the Senate.

Senator Givens:

– Is Senator Best converted now?

Senator Best:

– My honorable friend will hear from me later on.

The PRESIDENT:

– The Minister ‘ is addressing the Chair on the point of order, and I ask honorable senators not to interrupt.

Senator Best:

– We are by the Constitution authorized to make laws with respect to -

Railway construction and extension in any State with the consent of that State.

This Bill is not a Bill for the construction of the particular railway referred to. It is not a Bill for the extension of any railway, but to enable Parliament to secure certain information by means of a survey. As expressed on the face of it, it is. a Bill for an Act -

To authorize the survey of route for a railway to connect Kalgoorlie, in the State of Western Australia, willi Port Augusta, in the State of South Australia.

It therefore can in no way be described as a Bill for the construction of that railwaySenator Dobson must know that it would not be impossible to construct a railway without a survey, but at the same time the making of a survey as a condition precedent is the almost universal practice. The next answer to the pointof order the honorable senator has raised is that a practice has been laid down in the Senate, which I think it is rather late in the day for Senator Dobson, who is a temporary Chairman of Committees, to attempt to gainsay.

Senator Givens:

– Are we governed by precedents ?

Senator Best:

– We are to a large extent guided by precedents. Honorable senators must be aware that the principle to which I allude is that where questions involve the interpretation of the Constitution, as is suggested by Senator Dobson in this case, it is not for the President or the Chairman of Committees of the Senate to interpret the Constitution. That is the function of a judicial tribunal appointed for the purpose.

Senator Dobson:

– Surely the President can deal with a question of fact.

Senator Best:

– Fortunately this matter Has been discussed and determined on the principle I have referred to, the following ruling having been given by the late President of the Senate -

Except where the conduct of the business of the Senate is concerned the Chair ought not to be called upon to decide a question involving the interpretation of the Constitution.

In another ruling the late President defined the position at some length, and said-

As a general rule it is not proper for the President or the Chairman of Committees to give a ruling on the interpretation of the Constitution, but where a ruling is absolutely necessary in order to carry on the business it ought to be given. “The point of order now raised obviously “involves a question of the interpretation of the Constitution.

Senator Col Neild:

– For the purpose of carrying on the business.

Senator Trenwith:

– No; for the purpose of stopping the business.

Senator Best:

– It has been said that it is impossible to proceed with the survey until the consent of South Australia to the construction of the line has been obtained ; but so far as the survey may be taken through any private lands, all that is necessary is the consent of the owners of those lands So far as it may be taken through Crown lands, the consent of the Governments of South Australia and Western Australia will be necessary. That consent has already been obtained, as Senator Dobson must know. In all the circumstances it is idle to suggest that this Bill is not properly before the Senate. Senator Dobson’s statement that the expenditure upon the survey will be wasted is complete beside the question, because in a proper and authorized way, under the Constitution, an appropriation of money is proposed to bemade by an Act of Parliament.

Senator McGregor:

– I hope that a discussion on a point of order will not be made a means for the “ stone- walling “ of any measure that may be before the Senate. The Vice-President of the Executive Council has said that it would not be impossible to construct a railway without a survey, but he would have put his casemuch more strongly if he had said that hundreds of surveys are made which are not followed by the construction of the railway to which they relate. Any one with, half the common-sense possessed by Senator Dobson should know that the survey and construction of this railway are independent of each other. I would point out that the rulings of the late President or this question have not only been accepted, but confirmed, by the Senate.

Senator Givens:

– When?

Senator Pearce:

– At the end of each session.

Senator McGregor:

– Yes, at the end’ of each session they have been laid on the table and agreed to, but honorable senators when it suits them, are prepared to raise these questions-

The PRESIDENT:

– I ask the honorable senator to confine himself to the point of order, and not to refer to the conduct of honorable senators.

Senator McGregor:

– The conduct of honorable senators is involved in the discussion of this point of order, and it is only to that extentI have any desire to criticise their conduct. If that has even the semblance of being out of order I shall not do it. I hope that as little time as; possible will be wasted in discussing the point of order, and that the Bill will be given fair consideration in the Senate.

Senator St Ledger:

– There is a great deal of force in Senator McGregor’s statement that railway surveys very often are not followed by railway construction. It is a question, therefore, whether the word “ construction “ as mentioned in the Constitution would embrace a survey such as that provided for in the Bill now before the Senate. On the other hand, it will be admitted that whenever a railway has been constructed the cost of the survey has

Always been charged to the: cost of con struction. It is well to consider whether from that point of view the cost of survey is not part of the cost of construction, and consequently involved in the word “construction” as used in sub-section xxxiv. of section 51 of the Constitution. I should like to ask the VicePresident of the Executive Council whether we have the consent of the States Parliaments of Western Australia and South Australia to the survey of the railway.

Senator Col Neild:

– We have not the consent of either.

Senator Pearce:

– We have an Act of Parliament giving the consent of Western Australia, not only to the survey, but to the construction of the line.

Senator Trenwith:

– And the consent of the Executive of South Australia.

Senator St Ledger:

– I am glad to hear that, because this matter is comparatively new to me.

The PRESIDENT:

– Might I say, with regard to this question of consent, that we can only know what is before the Senate. We cannot take any notice of what may have appeared in the press.

Senator St Ledger:

– Exactly. I ask the Vice-President of the Executive Council to say what authority to make the surrey we have from Western Australia and South Australia, whether it is an Executive authority, or absolute parliamentary sanction for the survey as well as for the construction of the line?

Senator Best:

– I will give the honorable senator full information later on.

Senator St Ledger:

– I hope I shall not be considered as! trespassing upon the honorable senator’s patience or upon the time of the Senate in asking these questions, which, as a new member of the Senate, I think I am entitled to ask.

Senator Dobson:

– But the honorable senator requires the information to discuss the point of order.

Senator St Ledger:

– I take the view that unless in both the States named we have parliamentary and not merely Executive authority for entering their territories, our ‘ surveyors would be liable to be treated as trespassers. If that is so, then the question is whether this Senate should begin to adopt a course of action with regard to a railway - whether by survey only, which is a preliminary step towards construction, or by construction itself - without the consent of one or “both of the States concerned.

Senator Trenwith:

– On the question of whether the President should rule on constitutional questions, it would be wise for us to be bound by the precedent that has been established, although no precedent is absolutely binding on Parliament. Parliament has the power to make new precedents. On this occasion, Senator Dobson says there is a clear condition precedent, and that, therefore, the President should have no hesitancy in ruling. The question of whether there is a clear condition precedent is the very issue in which all the danger of the President undertaking to interpret the Constitution is involved. What is a clear and unmistakable condition precedent ? The issue in this case, clear as it is to Senator Dobson, is not clear to all the other honorable senators who have spoken. Senator McGregor and the VicePresident of the Executive Council expressed the opinion that survey and construction are absolutely distinct questions, while Senator Dobson holds that they, are parts of one and the same thing. Obviously, then, in the minds of those erudite and well-informed men, there is a difference of opinion, so that there cannot be a plain, unmistakable condition precedent in the matter before us. But even if there were a condition precedent that had not been complied with, the President should not rule, because in so ruling, he would establish a precedent which would involve the necessity, of his interpreting the Constitution on ali occasions, even when the point at issue might not be so clear. So we see the .possibility of the line of clearness vanishing to such a point as to be imperceptible, and yet, by the precedent established, entailing always upon the President the necessity or interpreting the Constitution. I would say further that if we were all agreed that there was an unmistakable infringement of the Constitution, that would at once render the President’s interpretation of the Constitution unnecessary, because this Chamber has another way of removing any matter that is brought before it unconstitutionally. The President, of course, rules as. the most expedient means of removing a question brought before us in contravention of our Standing Orders. That is his function. But on constitutional questions it is obvious that it would be exceedingly dangerous to allow any member, or even any Committee of Members of Parliament, to have the right to interpret the Constitution, seeing that we have declared as emphatically as possible that the High Court is the only authority for that purpose.

Senator Pearce:

– I trust that you, sir, will not reverse the ruling which was given by your predecessor, and which has been adopted and confirmed by the Senate. The following appears in the Decisions of the President of the Senate for the years i9°3-4-5-

Except where the conduct of the business of the Senate is concerned, the Chairman ought not to be called upon to decide a question involving the interpretation of the Constitution.

As a general rule it is not proper for the President or the Chairman of Committees to give a ruling on the interpretation of the Constitution, but where a ruling is absolutely necessary in order to carry on the business, it ought to be given.

The matter came before the Standing Orders Committee, and was presented by them to the Senate, and adopted. I am surprised that Senator Dobson, who is generally extremely conservative, should, on this question, propose a most revolutionary course of action, which would involve throwing aside the established practice and adopting a new practice from this time forward.

Senator de Largie:

– Was Senator Dobson a member of that Standing Orders Committee ?

Senator Pearce:

– Yes, the honorable senator was a member of the Committee which adopted that particular recommendation.

Senator Sayers:

– Surely the whole Senate is not bound by that?

Senator Pearce:

– The whole Senate voluntarily bound itself by it. The practice in the States Parliaments has been to adopt the practice of the British House of Commons, but when the Senate first met it was pointed out that it differed in many respects from any State House, and that it was necessary that it should adopt a practice of its own. That was done, and in these decisions we are building up a practice, founded on our own experience, to guide us in the future. Those decisions are not infallible, but some good reasons should be given before they are departed from. On the occasion to which I have referred, the then President ruled that, except where the conduct of the business of the Senate was concerned, the Chair ought not be called upon to decide a question involving the interpretation of the Constitution. There were several rulings given to that effect. The -then President stated that a question on which a ruling was absolutely necessary in order to carry on the business of the Senate, arose in the case of Senator Saunders. His right to vote was challenged, and the business of the Senate could not proceed until the question was settled. In that case, the President said he was compelled torule, but that does not apply to this case. Why did not Senator Dobson raise the constitutional question on the last twoBills before the Senate?

The PRESIDENT:

– I cannot have a request made to Senator Dobson to explain his conduct on a previous occasion. That has really nothing to do with the matter we are concerned with at this moment.

Senator Pearce:

– I submit that I am ir» order, sir.

The PRESIDENT:

-The honorable senator is in order in addressing himself ta the Chair with regard to the point of order that has been raised, but not in addressing himself to Senator Dobson and asking him why he did not take ai particular line of action on a previous occasion. So far as concerns a question of order, when it comes before the President, the President may or may not, as he sees fit, hear any addresses on the subject. Of course, the President, unless he has made his mind up very strongly; is natural1 y willing to hear from honorable senators anything that will assist him in arriving at a correct decision. With that view, I am only too glad to have the assistance of honorable senators, because I recognise that it must be very valuable, but at the same time, I ask them to remember that their remarks- must be addressed to the President, in whom the sole responsibility of the decision primarily rests.

Senator Pearce:

– I will put the matter in a different fashion. I will ask you, sir, to consider the. inconvenience that would have been occasioned if you had been requested to rule on the last two Bills wedealt with, on the ground that they infringed the Constitution.’ If this point can be raised on the Bill before us, it could have been raised on the others. Honorable senators have only to contemplate that state of things to see the awkward position in which, the President would find himself.

Senator Findley:

– I ask honorable senators to consider the position in which the Senate would be placed if the President ruled in favour of Senator Dobson’s point of order:

The PRESIDENT:

– I cannot allow that question to be raised at all. It is no concern of mine.

Senator Findley:

– If you, sir, can be called upon to interpret the Constitution, then every time a measure comes before the Senate, a similar point of order can be raised, and a Bill can be “ stone-walled “ until the end of time.

Senator Dobson:

– Surely the honorable senator does not accuse me of “ stonewalling “ ?

Senator Findley:

– I do not, but the honorable senator evidently desires to. “ stonewall “ this morning, because he invited all his legal friends and supporters to back him up in the point he raised.. On previous occasions, a similar point of order was submitted to the President, who ruled that he was not there to interpret the Constitution, but to carry on the business of the Chamber in accordance with the Standing Orders. The point raised by Senator Dobson has been already settled to the satisfaction of the Senate. If a different ruling were given now, there on all questions affecting the Commonwealth the same point could be raised, and there would be never-ending discussions, not on matters of. national importance, but on points of order.

The PRESIDENT:

– I wish to make a few remarks first with regard to the position that I feel I occupy as President of the Senate. It is perfectly true, as has been pointed out, that on two or three occasions, points of order have been taken in connexion with various Bills that have been referred to the President, and the President has declined to give an opinion which he said would involve the interpretation of the Constitution. If it is a question of the interpretation of the Constitution, I am with my predecessor that it is not part of the duty of the President, but if it is a question of the application of the Constitution, then I dissent from, the position taken up, apparently by certain honorable senators, that it is not part of the duty of the President to deal with that aspect of the matter. In this instance, it is not a question so much of interpreting as of applying the Constitution. There is a distinct difference between the two. It has been urged that my predecessor took the proper course when he1 declined to interpret the Constitution on a previous occasion, and held that there was another place appointed to deal with the question of -interpretation wholly. We must, however, bear in mind that there are a great many matters which involve to a certain extent, questions arising under the Constitu tion, if I may put it in that broad way’, but which at the same time can never be dealt with by the High Court once legislation has been passed, as the presumption is that all steps right and necessary and proper in accordance with the Constitution have been taken before Parliament al-“ lows a Bill to become law. That is where the advantage of having a Speaker or President to deal with very many of those questions lies. There may be an overwhelming majority of members in favour of legislation in a particular direction), and yet it may be that that legislation is entirely beyond the powers of the Parliament. It is well that there should be an opportunity for the presiding officer to give an expression of his views as to how far the matter comes within the purview of the Constitution. In section 51 of the Constitution the second paragraph provides that this Parliament may make laws with respect to - taxation ; but so as not to discriminate between States or parts of States.

Let us assume for the sake of argument that a matter is brought before the Senate, or before the House of Representatives, in which it is proposed to deal with taxation, but discriminating between States or parts of Stales. It is obvious that to pass such a measure would be beyond our powers. Suppose that such a Bill has been introduced and a point of order is submitted to the President for his ruling. Would it not be for the President to say, ‘ ‘ This Bill provides for partial taxation. The Constitution provides that we cannot dis? criminate between States. Therefore this Bill is not within the power of Parliament.” Could it be said that that was an interpretation of the Constitution ? Would not honorable senators say that it was an application of the Constitution? I wish the Senate to realize the distinction that I, at any rate, draw between interpreting and applying the Constitution. I should consider myself unfit to discharge the duties that the Senate has been pleased to place in my hands if I attempted to evade the responsibility, of discriminating between an application and an interpretation of the Constitution. I am glad in one way that the question has been raised thus early in the session so that I may have an opportunity of pointing out ‘the view that I take with regard to this matter of interpretation and application. I was not aware that the point was going to be raised. I do not complain of .that, however. Honorable senators have a right to take a point of order whenever they see fit. In order to make the point still clearer I will take another portion of the Constitution. In section 56 it is provided that -

A vote, resolution, or proposed law for the appropriation of revenue or moneys shall not be passed unless the purpose of the appropriation has, in the same session, been recommended by message of the Governor-General to the House in which the proposal originated.

Let us assume for the sake of argument that a Bill has been passed through all its stages in both Houses, although such a message as is provided for by that section has hot been sent to Parliament. I fail to see that the Court would have any power to go behind that Bill and inquire whether Parliament had or had not received a message from the GovernorGeneral. The Bill having been passed by both Houses, and having been assented to by the Governor-General, the law presumes, and rightly presumes, that all things were done that were necessary to be done before the Bill became an Act of Parliament. If the Bill now before us were out of order - upon the face of it I do not know that it is - I am not sure that the Court would be able to deal with it as a Bill that had been improperly passed. If it were shown that the consent of the State of South Australia had not been obtained, I do know that it could be held that the Bill had been improperly passed, though it might be nugatory. With regard to the question of rulings given by “the former President and submitted to the Senate, though they certainly were accepted in the sense that no objection was raised to them, I have to say that any question dealt with in those rulings can always be raised again upon another matter, or when a fitting occasion’ presents itself. A new President, or even the President who gave the former ruling, has a perfect right at a later stage, to review the decision previously given. We must not look upon any decision given by a President as being, like the laws of the Medes and Persians, unalterable. If upon any question my ruling was required and I felt constrained to dissent from a ruling of my predecessor I should have no hesitation in doing so. At the same time, however, I should have the utmost respect for the decision that had been previously given, and should be inclined, if the ruling in question had laid down the practice of the Senate, and had been followed, to adhere to it as far as I possibly could. In other words, I would not, because I did not quite agree with a previous ruling, depart from it if it had established the practice of the Senate. I should be inclined to say, “ The Senate has created its own law, and I am willing to adhere to it.” In this case w,e have only had a decision from my predecessor to the effect that it was not his duty to interpret the Constitution. From what I have said, honorable senators will be aware that I do not regard the question now raised as one of the interpretation, but df the application of the Constitution to the question under consideration. I have examined this Bill. I find that it purports to authorize the survey of a route for a railway connecting Kalgoorlie, in Western Australia, with Port Augusta, in South Australia. I have referred to the section of the Constitution to which mv attention has been drawn. It gives this Parliament power with regard to -

Railway construction and extension in any State with the consent of that State.

I am asked, to say whether this Bill infringes or does not infringe that provision. It has been urged that what is proposed is the preliminary stage of the construction of a railway. I have considered the point, but I am not going to give a decision that will hamper the freedom, of Parliament where that can by any possibility be avoided. In this case I perceive that Parliament is now being asked simply to authorize the survey of a route which may or may not be accepted. The survey could not be followed by the construction of a railway without the authority of an Act of Parliament, and, therefore, a Bill would have to be introduced. Holding that view, I do not see that I can maintain the point of order submitted by Senator Dobson. I take the ground that we are at present only concerned with authorizing a survey to be made. As to whether South Australia will allow our surveyors to go upon her territory or not, is a question that, does not now arise. It is a matter which the Government will have to look after and deal with. If South Australia gives her consent the survey may be made, but no railway can be constructed until another Bill is brought before Parliament; and in regard to that Bill there will have to be evidence that the consent of the States of South Australia and Western Australia to the construction of the railway has been obtained. Holding these views, I do not consider that the Bill is out of order. It is a Bill that can be proceeded with in its present form. The difficulties that may arise hereafter are not matters for the consideration of the Chair, but are matters for the consideration of honorable senators in determining whether they willor will not give their consent to the Bill.

Senator BEST:

– The whirligig of politics has cast upon me the duty of moving the second reading of this Bill ; and I do so-

Senator Col Neild:

– I rise to order. I beg to draw your attention, sir, to standing order 118, with reference tq anticipating notices of motion. On the day when the Senate first met this session, I gave notice of a motion for the nth July. It stands upon business-paper No. 1. Therefore the notice was clearly given at the earliest possible moment. Of course, I am not discussing the motion, but I must refer to its terms. They are as follows -

That no proposed public work or undertaking involving an estimated expenditure of£20,000 sterling or upwards shall be approved by Parliament or entered upon without being first submitted to a Joint Committee of the Senate and House of Representatives for inquiry and report.

That motion now stands on the paper for the 15th August. It had to be postponed in consequence of the debate on the AddressinReply extending over the day for which the notice was first given. Now the Minister in charge of this Bill has moved a motion-

Senator Best:

– I have not had an opportunity of moving it yet.

Senator Col Neild:

– The honorable senator has risen, and has addressed himself to the motion, even if he has not actually moved it. It has not been submitted from the Chair, but that does not make any difference. The motion is for the second reading of a Bill, which stands on the business-paper as an order of the day. Now, what is an order of the day? It is a piece of business that requires to be moved. As long as a piece of business stands on the paper simply as a notice of motion it is the property of the senator who has given notice of it, but when it is made an order of the day motion, if I may use that phrase, it is the property of the Senate, and cannot be dealt with in as light and airy a fashion as a motion standing in the name of an individual senator can be. In the one case, according to all parliamentary practice, the motion is the property of the senator who has given notice. In the other case, the motion is the property of the Senate itself. I submit with a great deal of deference, that the motion which” the Vice-President of the Executive Council has submitted for the second reading of this Bill involves a proposition identical with the notice to which I have referred. Clause 3 of the Bill proposes to expend a sum of £20,000 without inquiry in absolute anticipation of the discussion on the motion which stands in my name, and for which notice was given on the very first day we met. I point out that in . another place there are certain matters connected with the conduct of this Bill indicative of most extraordinary haste, possibly with the intention of achieving that which is now sought to be achieved, namely, to anticipate the discussion on a motion on the notice-paper. An interjection suggests that if my point of order be sustained, it will be possible by notice of motion to prevent legislation. That, sir, is a proposition which I am sure will not trouble you in giving a decision, because it is not the duty of a presiding officer to suggest, or endeavour to anticipate contingencies that might arise, but only to deal with contingencies which have arisen. If it is possible to anticipate a motion in the manner sought, it would be useless to give notices of motion, because they could always be anticipated. That is an answer to the proposition that a notice of motion might block legislation. I do not think, sir, that you will conceive it to be vour duty to attempt to settle this question on mere possibilities, but rather on the question which has arisen. I admit that there may not be on the records of this Parliament, or even the British Parliament, an exactly analogous case. Possibly a similar case has never arisen, but, nevertheless, I do with great respect submit for your consideration whether the present juncture does not disclose an anticipatory motion - a motion for the voting of a work or an undertaking, and I particularly draw your attention to the term “ undertaking “ in my notice of motion. It may be alleged that a survey is not a public work, but certainly it is a public undertaking, and it so happens that the summentioned is the same in each case, namely, £20,000.It cannot possibly be allegedthat in giving the notice of motion, there was any attempt on my part to interfere with proposed legislation, for the simple reason that when it was given, there was no motion made or proceeding indicated anywhere, which would be anticipated by it. I shall not occupy any more time in discussing the question, because it seems to me that it is one which lies in so small a compass that lengthy observations are unnecessary.

Senator Best:

– If, sir, it were possible that the standing order in question could bear the construction which Senator Neild wishes you to put upon it, it would .most seriously block the business of the Senate. In fact, it would absolutely .paralyze our business because it would be quite possible for a very astute senator - and I believe that we have a few astute men here- to anticipate what was likely to come on, and thereby block all business which was obnoxious to him, from time to time, by postponing the motion sO as to make quite sure that his object would be achieved. Let us read the standing order as we are obliged to do - strictly -

No motion or amendment shall anticipate an order of the day or another motion of which notice has been given.

Can it be seriously suggested that a Bill which has for its object the authorizing of the survey of a route for a railway to connect Kalgoorlie with Port Augusta is designed to anticipate the discussion of a general motion referring to public works? I want honorable senators to realize that the object of the standing order is to prevent the anticipation of the discussion on a measure, or a motion, or an order of the day, as the case may be, which is to come on at a later period. On the present occasion, the Senate is simply invited to’ discuss a Bill . authorizing a survey and not to discuss a general proposition in the terms of the notice given, by Senator Neild. The Senate is not asked to anticipate the discussion of the policy which is embodied in that motion, but simply to discuss the question whether .or not the survey of a route should be authorized. There have been innumerable rulings given by. the late President. For instance, he has ruled on many occasions that - lt is irregular to anticipate the discussion of an order of the day.

Again he has ruled -

A senator in a speech on a Bill may refer to another Bill which is connected with the Bill under discussion when both Bills would be contained in one measure except for the provisions of the Constitution Act.

He has ako ruled that -

Even on the first reading of the Appropriation Bill a senator is debarred from discussing any matters on the notice-paper.

With reference to that ruling he has made this comment -

This ruling is strictly in accordance with standing order 405, but a rigid adherence to this standing order might lead to ‘ undesirable results. A senator, in order to prevent discussion of a subject, might give notice of motion concerning such subject, and after all never move the motion. Discretion must be exercised in the enforcement of the rule.

My honorable friend must see that the motion before the Senate and the motion of which he has given notice have no possible relation one to the other. 1 feel quite certain, sir, that even if there were a remote connexion, you would see that the business of the Senate was not interfered with and paralyzed, as would be the case were my honorable friend’s contention entertained.

Senator Walker:

– If Senator Neild’s point of order is in order, it seems to me that if he fixed his notice of motion for the 15th November, no public work or undertaking estimated to cost ^20,000 or more could in the meantime be considered by the Senate. . Such an idea is simply preposterous.

The PRESIDENT:

– With reference to Senator Neild’s point of order that the Senate cannot proceed with the Bill, in consequence of standing order 118, it appears to me that the standing order is not intended to meet a case such as the present one. The Standing Orders are designed for the purpose of facilitating and providing for the proper consideration of the business of the Senate. If standing order 118 did apply to a case like the present one, it would then be possible for an honorable senator to prevent any legislation from taking place, unless, of course, the Senate saw fit to suspend the Standing Orders, as it could do. With regard to two similar, motions dealing with exactly the same subject, there can be no question that the effect which Senator Neild now desires should follow would have to be given to the standing order. The other House has passed through all its stages a Bill which it has sent to the Senate for consideration. If I were to sustain Senator Neild’s point of order, it would affect not only the proceedings of the Senate, but also the proceedings of the other House. We should be placing ourselves in such a position that we could prevent the consideration of subjects which the other

House desired to have considered. This Bill will, if passed by the Senate, become a Bill of both Houses. The standing order is intended to deal with matters which peculiarly affect the Senate. I do not say that that contention is an absolute answer, but I wish to point out one of the inconveniences of construing the standing order as Senator Neild suggests. If we. examine the Bill and his notice of motion, we shall find that the object of the former is to authorize a specific undertaking which, it appears to me, can be debated without reference to the honorable senator’s motion. I agree with the contention of the honorable senator that the term “ undertaking” is embodied in his motion. It reads as follows -

That no proposed public work or undertaking involving an estimated expenditure of ^20,000 sterling or upwards shall be approved by Parliament or entered upon without being first submitted to a Joint Committee of the Senate and House of Representatives for inquiry and report.

The Bill provides for an undertaking which will involve an expenditure of ^20,000, but are we, because a senator has placed upon the notice-paper a motion which may, or may not, be reached, to prevent the consideration of that proposal? I think not. Before any efficacy could be given to the motion of Senator Neild it would be necessary for both . Houses to come into concurrence. Supposing, for the sake of argument that the Senate passed the motion, and that the other House did not see fit to concur therein, could it be contended that the Senate should never consider a Bill from the other House involving an expenditure of ^20,000 on any public undertaking or public work unless the condition specified had been complied with ? I think not. This is a case in which, to use the words of my predecessor, we should exercise discretion in administering a standing order of this character. And that remark applies to all the Standing Orders. I therefore am not prepared to sustain the point of order.

Senator BEST:

– For the third time I rise to address the Senate on the motion for the second reading of the Kalgoorlie to Port Augusta Railway Survey Bill. While it is quite true that this will be the first Survey Bill to receive my vote, yet I have no qualms on the subject, because, prior to the expiry of the last Parliament, and while the last Bill was before the Senate, Senator Trenwith and I, after consultation, determined that we would no longer vote against the measure.

Senator Givens:

– When did the honorable senator arrive at that conclusion?

Senator BEST:

– Whilst the last Bill was before the Senate.

Senator Trenwith:

– That is correct. 1 made the statement in public.

Senator BEST:

– I believe Senator Trenwith did make the statement in public. I did not speak on the last occasion, and for that reason alone did not make a similar, announcement. I was moved to take this course for two reasons, which, in my judgment, are sufficient. The first was because the Bill had been passed in another place on three occasions. The judgment and determination of honorable members in another place is, I think, entitled to some respect, especially when it is borne in- mind that in the House of Representatives there are only five direct representatives of Western Australia, and seventy representatives of the other States. The seventy honorable members representing the other States, whilst having due regard to the general interests of Australia, and special regard to’ the interests of their own States, saw fit in the exercise of their judgment to determine, by passing the Bill on the three occasions, that the proposal is fair and reasonable. I may further mention that while for every one representative of Western Australia in the other Chamber there are fifteen representatives of the other States, in the Senate honorable senators have always been practically equally divided in opinion on this question.

Senator Findley:

– The Bill has had the approval of every Federal Government that has been in power.

Senator BEST:

– I propose to give a short history of the Bill in order to satisfy honorable senators in that respect. The position is that’ in another place the Bill has on every occasion been passed by an overwhelming majority, and when it has come before the Senate, where the direct representation of Western Australia is only as one to six representing the other States, there has been practically an equal division of opinion upon it. In the circumstances, I ask whether it is not fair and reasonable that the views of members of the Parliament representing States other than Western Australia should receive respectful consideration. That was one reason which actuated me. The other reason was that this proposed railway from Kalgoorlie to Port Augusta is inevitable. It is only a matter of time as to when it is to be constructed. If the aim and object of the Federation is to be achieved, I say it is inevitable that the eastern States should be linked to Western Australia in the way suggested- I recognise, moreover, that this measure is, at most, but a survey Bill,, having for its object the securing of further information for the guidance of the members of both Houses of the Federal Parliament. I am anxious to discuss it without heat or feeling, and to lay the matter dispassionately before honorable senators for their thoughtful consideration. Emphasizing the point I have already made, may I be permitted to say, first of all, by way of a short and succinct history of the measure, that on the 20th April, 1904, my right honorable-colleague, Sir John Forrest, being then Minister of Home Affairs, moved the following motion : -

That it is expedient that an appropriation of moneys be made for the purposes of a Bill for an Act to authorize the survey of a route for a railway to connect Kalgoorlie, in the State of Western Australia, with Port Augusta, in the State of South Australia.

Progress was reported on that, motion, but before the matter was further proceeded with, a new Government came in, namely, the Watson Government, on the 27th April, 1904, and then on the 9th June, 1904, Mr. Batchelor, as Minister of Home Affairs, moved, a motion in the same terms as that which I have quoted. Strange to say, the matter then only reached the stage of reporting progress on that motion. The ReidMcLean Administration took office on the 1 8th .August, 1904, and on the 13th September, in Committee, in another place, a motion in the same terms as the motion I have already quoted, and in charge of Mr. Dugald Thomson, was discussed, and progress reported. The discussion was resumed later, and the resolution was reported and adopted after a division, in which there were 39 ayes and 12 noes, or a majority of 27. I may point out that in another place it has been the practice when the GovernorGeneral’s message recommending the necessary appropriation has been under consideration to discuss the matter very fully. I say that on this occasion the preliminary motion was passed by a majority of 27, the second reading took place on 14th October, 1904, and was carried on a division in which there were 34 ayes and 12 noes, or a majority of 22. It will be noticed that all the Administrations up to that date had favoured the introduction of this Bill. And, as is. well within the recollection of honorable senators, our colleague in this Chamber,. Senator Symon, on the 14th December,. 1904, moved the second reading of the Bill in the Senate, but the further consideration ‘ of the measure was interrupted by the prorogation of Parliament. On the 27th July, 1905, Senator Playford moved the following motion : -

That, in accordance with standing order No. 234, the proceedings on the Bill intituled “A Bill for an Act to authorize the survey of a route . for a railway to connect Kalgoorlie, inr the State of Western Australia, with Port Augusta, in the State of South Australia.” which were interrupted by the prorogation of Parliament on Thursday, the 15th day of December, 1904, be resumed at the stage then reached; in connexion with the said Bill; and that the adjourned debate on the second reading be resumed on Wednesday next.

After considerable debate that motion was agreed to on the 3rd August, 1905, and the debate was accordingly resumed from 15th December, 1904, on the “motion which had), been moved by Senator Symon, “ That the Bill be now read a second time.” On the 16th August, 1905, Senator Givens interposed, and moved as an amendment that all the words after “ be “ be left out with a view to insert in lieu thereof- the words - not . further considered until evidence that the Parliament of South Australia has formally consented to the Commonwealth constructing that portion of the proposed railway which would be in South Australian territory has been laid on the table of the Senate.

A division was- taken on the question, “ That the words proposed to be left out be left out,” when the voting was ayes 15 and noes 14, a majority of one. On the question .that the words proposed to be inserted be inserted, a division was also taken, when the voting was ayes 19 and noes 10, a majority of 9. Of course, the real test of the opinion of the Senate was made on the amendment for theleaving out of the words in the original question submitted, and that was decided by a vote of 15 to 14.

Senator Pearce:

– A majority of only one.

Senator Givens:

– In view of that decision, does not the honorable senator think that it is flouting the Senate to force the Bill on honorable senators now when that condition” has not been complied with?

Senator BEST:

– If Senator Givens will allow me, I desire to lay the matter very quietly before honorable senators for their consideration.

Senator Dobson:

– We have not the consent that was asked for, and the Government cannot get it.

Senator BEST:

– I shall not ignore the questionof consent which is giving the honorable senator so much worry and anxiety. In 1906, the Bill was reintroduced in the House of Representatives by my honorable colleague the AttorneyGeneral, and was then carried by 29 ayes to 11 noes, the majority on that occasion being 18. It was then again introduced in the Senate by Senator Playford, a division taking place on 21st September, 1906, on the motion for the second reading, with the result that there were 13 ayes and 13 noes, when the question passed in the negative in accordance with the terms of the Constitution. The result, therefore, is that we have had on all the occasions I have referred to, an overwhelming majority in favour of the Bill in another place, and a practically equal division on the subject in the Senate.

Senator Pearce:

– On the last occasion to which the honorable senator has referred, one Western Australian senator was absent and his vote was unaccounted for.

Senator BEST:

Senator Pearce rightly reminds me that if, on that occasion, Western Australia had been represented by its full strength, the second reading of the Bill would have been carried. We are row in 1907, and we have before us this request for the prosecution of a survey between the two points referred to. in the Bill. Senator Dobson has expressed much anxiety concerning the consent of South Australia.

Senator Dobson:

– I am more anxious about the injustice of the whole proceeding.

Senator BEST:

– The honorable senator will have the fullest opportunity to refute any statement of fact I submit to the’ Senate. He has expressed much anxiety concerning the consent of South Australia to the proposal, as though it would deprive that State of a large portion of its territory. On the 7th May, 1906, the present Prime Minister wrote to the Premier of South Australia and invited his attention to the fact that, at the instance of Senator Givens, the resolution to which I have already referred was carried in the ‘ Senate. He invited the South Australian Premier to say - what action should be taken in the direction of redeeming the undertaking given by Mr. Holder, then Premier of your State, on 1st February, 1900, in a letter to the Premier of Western Australia, copy of which I enclose.

Mr. Deakin, in his letter, went on to say -

I shall be glad to learn whether you have considered the advisableness of making any proposals to your Parliament, and, if so, to learn the nature of the recommendations you intend to submit.

It may not be out of place to mention that Mr. Holder’s undertaking, to which the Prime Minister referred, was given in a letter by Sir Frederick Holder, then Mr. Holder, dated 1st February, 1900, wherein, addressing my right honorable colleague, Sir John Forrest, he wrote -

Following our conversation as to the possible blocking of the construction of a railway line from Kalgoorlie to Port Augusta by the Federal authority, by South Australia refusing consent rendered necessary by sub-section 34 of clause 51 of the Commonwealth Bill, to the construction of the line through her territory, I regard the withholding of consent as a most improbable thing, in fact, quite out of the question.

To assure you of our attitude in the matter, I will undertake, as soon as the Federation is established (West and South Australia both being States of the Commonwealth), to introduce a Bill formally giving the assent of this province to the construction of the line by the Federal authority, and to pass it stage by stage simultaneously with the passage of a similar Bill in your Parliament.

It will be noticed that the Prime Minister, in his letter of the 7th May, enclosing the letter which I have just read, asks the Premier of South Australia for the consent of his Parliament.

Senator Dobson:

– Because it is rendered necessary by the Constitution, as the letter shows.

Senator BEST:

Senator Dobson is most rebellious to-day. The President has ruled against him. Then there was the reply to Mr. Deakin’s letter by the Premier of South Australia, which was as follows: -

In reply to your letter of the 7th May respecting the proposed railway from Port Augusta to Kalgoorlie, I have the honour to refer you to my telegram of rst March last -

That, I find, is a clericalerror, as the date should be 1st August. and to say that this Government has no objection to the survey as therein notified,

May I put that last sentence iri italics? “ This Government has no objection to the survey, as therein notified.” but cannot undertake to consider a Bill for submission to Parliament in the absence of information as to the route and terminal points of the railway.

The very object of the survey is to determine what the route and terminal points of the railway, should be. The telegram referred to by the Premier of South Australia was the one sent by him on ist August, 1905, as follows : -

We have no objection to survey Western Australian Railway, but desire to be consulted as to route; it must be understood that this in no way binds us to ultimate approval of policy.

Is not that a most cordial approval, given in the most sensible way, of the passage of a Bill with the object of satisfying the Commonwealth and South Australia on points upon which they are seeking information ?

Senator Dobson:

– Does the honorable senator, as a lawyer, say that that is a cordial approval?

Senator BEST:

– Undoubtedly it is a most cordial and direct approval of a survey - the initial stage of the construction of a railway.

Senator Dobson:

– It is a conditional approval.

Senator BEST:

– May I be permitted, with great humility, to differ from the opinion of my honorable friend? The approval is not conditional so far as the survey is concerned.

Senator Dobson:

– It is conditional as to being consulted as to the route.

Senator BEST:

– The honorable senator is evading the question. It is an unqualified approval of the survey, with the simple stipulation that subsequently, when the question arises as to the determination of the route, they must be consulted. Honorable senators have a right to say, “ You must give us some idea of what the contemplated survey really means.” The Right Honorable the Treasurer has been in consultation with Mr. M. E. Kernot, a skilled and capable officer, occupying the position of Engineer-in-Chief of the Victorian Railways, regarding arrangements for the survey, and, according to Mr. Kernot, the scope of the survey is to be as follows: -

  1. The survey would be a sufficient one to ascertain the cost of construction, the cost of water supply by conservation, the .prospects of water being obtained by boring, the character of the land on each side of the route, and its suitability for agricultural and pastoral purposes, and there would be a geological survey to ascertain the mineral resources of the country.

There are” two routes through South Australia to be examined - one from Port Augusta vid Tarcoola, passing some forty miles north of Eucla, and thence to Kalgoorlie; the other from Port Augusta through the Gawler Ranges vid Fowlers Bay, and the head of the Great Australian Bight, passing about ten miles north of -Eucla to Kal- , goorlie. Both routes would practically traverse the same route through Western Australia. The Tarcoola route would probably cost about half a million sterling more than the more southern route.

  1. The actual pegging out of the construction would not be included in the ^20,000, but the information would be sufficient to enable “Parliament to decide as to whether the work should be undertaken, and sufficient to enable Parliament to pass a Bill setting out the route to be followed and authorizing the work to be undertaken.

Is it not most desirable, in order that we should come to a. reasonable decision on a big undertaking like -this, which must inevitably come to pass, as my esteemed friend Senator Dobson knows, that all the . information to be obtained by this survey should be made available?

Senator Dobson:

– If the pegging-out is not included in the survey, what is to be included?

Senator BEST:

– I have most carefully explained in detail the scope of the survey, and the honorable senator will have an opportunity afterwards of reading my remarks. He is really not doing himself justice. From Fremantle to Adelaide the distance is 1,746 miles. Western Australia has already constructed a railway to Kalgoorlie, a distance of 387 miles, on a 3 ft. 6 in. gauge. The proposal regarding the railway, the survey of which this Bill proposes to authorize, is that the gauge shall be 4 ft. 8£ in., and Western Australia has undertaken to widen the existing line from Kalgoorlie to Fremantle, to make the gauge uniform. South Australia has already constructed a. line from Adelaide to Port Augusta, a distance of. 259 miles, so that, of the gross length of 1,746 miles from Fremantle to Adelaide, there have already been constructed 6*46 miles. If the existing lines are to be utilized, the balance remaining to be constructed to join them would be about i,roo miles, of which 475 are in Western Australia and 625 in South Australia. We have had many reports on this question, to which it is my duty to draw the attention of honorable senators. It will be impossible for me to quote copiously from them, but I will direct attention to certain features, and honorable senators will then be able to gather the full information contained in the reports for themselves. The first report is that of Mr. C. Y. O’Connor, who was formerly EngineerinChief of the Western Australian Railways - a man of very great skill, in whom a great amount of trust and confidence was reposed by the Government of Western Australia. His report was laid on the table and ordered by the House of Representatives to be printed on 16thJuly, 1901. Various questions which are set out in the report were submittedto Mr. O’Connor, and he was asked also to estimate the total cost. This he fixed at £4,400,000, and he gives details showing how he arrives at it. He points out that the charges and expenses of raising loans would probably bring this amount up to £4,600,000. He also gives details of the basis of his estimate of the probable revenue. Dealing with that and the estimate of working expenses, he points out -

My estimate of the immediately probable receipts and working expenses, as directly deduced from the data above given, is - Receipts, £240,000, and working expenses, £160,000, showing net profit towards payment of interest of £80,000 per annum.

This, however, is on a basis of things as they exist at present, and it is of course more than probable that the existence of the railway, and the development of the Commonwealth generally, would produce much better results in years to come.

It would not therefore, I think, be a too sanguine anticipation to assume that within a few years from date of completion ofrailway, the results would be as follows : -

As compared with the net profit of £110,000 per annum above indicated, there would be the interest on estimated cost (£4,600,000) amounting, at 3 per cent., to £138,000 per annum, thus indicating a loss to the Commonwealth in respect of this railway for some years of £28,000 per annum, but this result would no doubt improve in the course of time, such being the history of railways all over the world,

Senator Dobson:

– My honorable friend knows, of course, that 3 per cent, is too low.

Senator BEST:

– I do not know anything of the kind. I shall be grievously disappointed if at any time the Australian Commonwealth has to borrow money at above 3 per cent. -

It may be held by some experts that my estimate that the working expenses would amount to two-thirds of the gross receipts is excessive ;. but, in view of the probable exceptional cost of working expenses in this case, including the cost of providing water and fuel for the locomotives, I doubt if my estimate could be safely reduced. .

Mr. O’Connor then set out the benefits which would accrue from the construction of the railway, but those, no doubt, honorable senators will have “an opportunity of hearing from other sources.

Senator Dobson:

– Did he say how the locomotives were to be watered?

Senator BEST:

– I presume they will be watered in the usual way. Another report to which I wish to direct attention is that of Mr. John Muir, Inspector of Engineering Surveys, to the Engineer-in-Chief of Western Australia, on “ Preliminary examination of country between Kalgoorlie and Eucla.” It was laid on the table of the Senate by command, and ordered to be printed, on 5th March, 1902. On page 7, Mr. Muir, dealing with the country through which he passed”, says -

To the north, near the 31st parallel of latitude, the country is more open. In fact, from the South Australian border for 250 miles in a westerly direction, it is one large open plain of limestone formation, fairly well grassed throughout.

Taken as a whole, this stretch of country is one of the finest’ I have seen in Australia, and, with water - which doubtless could be obtained if properly prospected for - it is admirably adapted for grazing purposes, and will without doubt be taken up some day from end to end.

On page 8 he says -

Apartfrom the facilities that would be afforded to railway construction, and the maintenance of the railway service when completed, by artesian water being struck on this waterless tract of country, it would be of incalculable profit to the State in another direction. At present there are millions of acres of splendid pastoral land lying idle in this portion of the State, solely because water has not been conserved. Once let it be known that artesian water has been discovered, and what is now nothing better than a waste would be transformed, in a very short space of time, into one of the most important stock-raising centres of our State.

I would, therefore, strongly urge that steps be taken, as soon as possible, towards having an experimental bore put down in some part of this plain.

And then again -

Regarding the course that the railway will take,. I would point out that if the line is taken to Eucla and thence to Tarcoola, the length would be increased by some 10 miles, but it would then open up. in so far as this State is concerned, a better class of country.

Senator Dobson:

– What about the bores for water?

Senator BEST:

– I will deal with that matter. I hope my honorable friend will iind, when I have finished, that I have left out very little. He may urge that these are only reports from engineers connected with Western Australia, who might be unconsciously biased, but in March, 1903, the then Minister of Home Affairs, Sir William Lyne, took the wise step of asking for a report on the proposed transcontinental railway from Kalgoorlie to Port Augusta from a Conference of Engineers-in-Chief representing the other States. They are H. Deane, New South Wales ; William Pagan, Queensland; A.. B. Moncrieff, South Australia; Maurice E. Kernot, Victoria; and C. S. R. Palmer, Western Australia. These engineers met in conference. The points submitted for their consideration are set out in detail. I will not trouble the Senate by referring to them, but it is important to observe that they state on the first page of their report that-

The information to hand is not sufficientto enable us to speak with certainty and accuracy on all points. For instance, the particulars as to possible sources of water supply, both for construction purposes and for locomotive use, are extremely meagre, and the best route canmot be determined without further data, the obtaining of which will affect both the length of the line and its cost.

It is that further data that I am now asking the Senate to enable us to procure. The engineers go on to say -

Alternative routes have been suggested, and we are at present not in a position to decide which is the better.

Senator Dobson:

– How much of the country did they see for themselves?

Senator BEST:

– My honorable friend may refer to their ‘reports, and anything v/hich he finds in them which will assist him in opposing the Bill he will no doubt take full advantage of. These experts had no difficulty in determining that a 4 ft. 8½ in. gauge should be adopted. They made an estimate which they subsequently reduced, but in this preliminary report they say -

From the information at our disposal, we form the opinion that the line can be constructed for the above amount. namely, £5,090,183.

The estimate may appear large, but, as already pointed out, many o’f the data are uncertain - no survey has been made, the waterways have not been fixed, and the cost of water supply is indeterminate. We are strongly of opinion that further and closer examination and partial survey will show that the line can be constructed for a less sum than that named.

So that, it will be seen, practically every report that we have before us shows that a survey is required. As this is such an important report, from experts whose advice was sought by the Commonwealth Government, I may be permitted to refer to it a little more fully. In regard to their estimate of revenue and expenditure, they set out details showing why they arrive at the conclusion that at the opening of the line there would be a deficiency of £86,696, but they estimate that ten years later there would be a profit over and above interest and working expenses of £23,564. In paragraph 11 of their report they say -

The probable effect of the construction of the proposed line would be - A saving of two days in the transmission of mails and passengers between Fremantle and the Eastern States, and, if in the future the line is linked up with the New South Wales system through Broken Hill, a further saving of one day would be effected in communication between Fremantle, Sydney, and Brisbane.’ The saving of time will be yet greater in the case of communication between the Western Australian gold-fields and the eastern States, and for this reason, and also because the cost of the journey will be cheapened, the intercourse between east and west will, it is anticipated, increase considerably. Movement of troops for defence purposes overland will be rendered possible. Telegraphic communication between the east and west could be improved_and rendered more secure at small capital cost By making use of railway telegraph posts. The effect on the food supplies of the Western Australian goldfields will be the reduction of prices and an improvement in quality. The effect in both South Australia and Western Australia will be the opening up new tracks of country for mineral and pastoral development, and the improvement of revenue on the existing lines in the former State. On the other hand, Western Australia would lose, owing to reduced traffic (passenger and stock) between Fremantle and Kalgoorlie; and Adelaide will suffer through ceasing to be terminus for the delivery of oversea mails, and still more so if the ultimate result should be the abandonment of Adelaide as a port of call.

On page 4 of their report they say -

As to the advisability of constructing the proposed line at the present time, we beg respectfully to suggest that, in view of the direct monetary loss involved, this is largely a question of policy and sentiment depending on many issues regarding which’ we have no intimation, and we hope we may be excused from expressing any other opinion than that,ifthe past progress of Western Australia is maintained, the line will ultimately be a necessity and a financial success.

In summing up categorically their recommendations they say -

  1. The authority undertaking the proposed construction should be prepared, on present information, to expend £5,090,000.
  2. The probable revenue, after construction of the transcontinental railway described in the preceding report, would, in view of the information submitted to us, be £205,860 per annum. If past progress inWestern Australia is maintained, this revenue would probably increase in ten years to £411,720.
  3. The probable expenditure in working the line on the basis adopted would be £114,400. In ten years, under the conditions stated above, this cost of working would probably increase to £210,000 per annum.

They also say -

Feeling that additional information is required before the investigation can be properly completed, we beg to bring certain matters in connexion with the scheme under your notice, and would respectfully make the following recommendations.

Then they make various recommendations as regards the obtaining of further information. I have quoted fully from this document, because honorable senators mustrely largely on expert evidence in this connexion ; and these engineers have given us their opinions very fully in the form of answers to definite questions. There was a final report from the Engineers-in-Chief dated 27th July, 1903, and ordered to be printed on the 29th July of the same year. This document is signed by the same five gentlemen. In it they make some amendments in their former estimates of revenue and expenditure. They say that on the opening of the line there would be a deficiency of £68,106 per annum, but that ten vears later there would be a net profit over and above working expenses and interest of £18,219. They make a summary of their answers to the questions put to them’, and I will read it -

  1. We estimate the probable expenditure in construction at £4,559,000.
  2. The probable revenue which may be depended upon after construction is, in our opinion, £205,860. If the past progress in Western Australia is maintained, so that the present population becomes doubled in ten years after completion, the revenue may also be taken as double, namely, £411,720.
  3. The probable annual expenditure in working and maintaining the line immediately after construction we estimate at £114,400, which, added to interest on the cost of construction at 3½ per cent., £159,566, gives £273,966 for the total expenditure. After ten years under the conditions stated, the working expenses may be taken as £210,000, and, in view of the necessary expenditure in improving works in the meantime, the interest on the enlarged capital will be £183,501, making a total of £393,501
Senator Mulcahy:

– Is the honorable senator making a speech in advocacy of the construction of the line?

Senator BEST:

– I am furnishing reasons why honorable senators should authorize the survey. It is, of course, my duty to lay before the Senate the fullest information when we are proposing to spends £20,000 on such an undertaking.

Senator Mulcahy:

– When did the honorable senator arrive at his present opinions regarding the railway?

Senator BEST:

– My honorable friend is rather late. If he had been present earlier he would have had the fullest information! in that regard. Certainly my present opinion was not formed coincident with my acceptance of a seat in the Cabinet.

Senator Mulcahy:

– It was at about the same time, at any rate.

Senator BEST:

– My honorable friend is again wrong - totally wrong. If he had been present earlier he would have learned! that the contrary is the case. Again, the engineers say in their summary -

  1. The route selected, taking all the circumstances into consideration, is thatvia Tarcoola.
  2. We have, after careful consideration of the whole question, no hesitation in stating that the standard gauge of 4 ft. 8½ in. should be adopted.
Senator de Largie:

– These engineers are all men of reputation.

Senator BEST:

– Undoubtedly.

Senator Mulcahy:

– Not one of them ever saw the country.

Senator BEST:

– My honorable friend! will forgive me for pointing out once more that certain questions were referred to these experts, and that they have given us advice that is equal to their reputation. The only other report which I desire to mention is one presented to Parliament on 28th July, 1904, by Mr. John Gwynneth,. entitled “Western Union Railway.” In it he says -

I have given the subject considerable study, and am positive that if a free hand is given the Federal Government as to route, as stipulated by you, it will be found that a route to the south of the Gawler Ranges, passing over the plains within a couple of miles of Fowler’s Bay, with a branch line to the port, thence skirting the coast line to within three miles of Eucla, thence direct to join Mr. Muir’s line at Cardinia, will be - 1 st. Sixty-fivemiles shorter than the northern one, via Tarcoola.

It can be constructed for £610,000 less than the estimate for the other.

Again he says -

Viewed from a financial stand-point, and assuming the revenue will be the same as that estimated by the Conference for the northern route, I shall hereafter show that as the result of ten years working a clear profit of £173,850 would result, as against a loss of £249,435on the northern route, and at the end of ten years the annual profit will be £72,515, as against £18,219 estimated by the Conference.

He estimates that on the opening of the line there will be an annual deficiency of £37,745, and that after ten years there will be a net profit over and above working expenses and interest of £72,515. I have also a report by Mr. H. C. Castilla, on boring operations for water along the proposed route. I do not propose to deal with the features of the report, because it is available to honorablesenators, having been printed to an order of the Senate, made on the 20th October, 1904. I shall content myself with saying that he writes in the most hopeful terms of the possibility of procuring a supply of water. I would next draw the attention of honorable senators to a paper which, if not already circulated, will shortly be circulated, and which will give information as to the character of the country adjacent to or through which the proposed railway from Kalgoorlie to Port Augusta would pass, between latitude 30 degrees south and 32 degrees south, and between longitude 125 . degrees east and 131 degrees east, comprising an area of 20,000,000 acres of grassy country. It contains extracts from Sir John Forrest’s work, describing his examination of the country. Honorable senators have had an opportunity of making themselves acquainted with the glowing terms in which he speaks of this belt of country - 20,000,000 acres - which will be made immediately available if the railway be constructed.

Senator Dobson:

– When shall we be supplied with a copy of the paper?

Senator BEST:

– The paper, which is already in print, should be circulated within a day or two, certainly before Wednesday next. I desire now to refer to the possible strategical importance of the proposed railway in connexion with the defence of Australia. According to a paper, which was ordered by the other House to be printed, on the 23rd July, 1903, Major-General Hutton was invited by the then Minister of Defence to report on this matter from a strategical standpoint. In his report he says-

The contemplated extension of railway communication between Kalgoorlie in Western Australia and Port Augusta in South Australia is, from a strategical and military point of view, of unquestionable value. The isolation of Western Australia, without direct land communication with the other five States of Australia, will, in time of war, cause a general feeling of insecurity. Under the existing circumstances, Western Australia, for purposes of co-operative military assistance from the other States, is’ as far distant from direct means of reinforcement as New Zealand is from the Eastern States of Australia.

It is quite true that he makes a qualification, because later on he says -

It may be as well to state at once that a force of the requisite strength organized and capable of taking the field does not at present exist in Australia, and that there are at present no local means of equipping such a force. The organization is wanting ; the departments necessary for a mobile Army have yet to be created ; and there are neither sufficient guns, arms, equipment, nor ammunition available. It will, therefore, be seen that the construction of the railway as contemplated would, under existing circumstances, confer no advantage to Australia in its present condition of military disorganization and unpreparedness.

That, of course, is beside the question altogether. If such a state of affairs exists, it is only a matter of time when it will be remedied. Major-General Hutton concludes his report with the following statement : -

It will, therefore, be seen from the foregoing that, important as it would be for defence purposes to possess Inter-State communication as proposed, the establishment of railway communication would, in itself, be of small value without a military force being in existence which could be utilized by its means with any reasonable hope of success.

The same parliamentary paper contains an extract from a report by Major-General J. Bevan Edwards, C.B., commanding the troops in China and Hong Kong, to His Excellency Sir W. C. F. Robinson, G.C.M.G., Acting Governor and CommanderinChief of Victoria.It reads as follows : -

No general defence of Australia can be undertaken unless its distant parts are connected with the more populousColonies in the south and east of the continent. If an enemy was established in either Western Australia or at Port Darwin, you would be powerless to act against him. Their isolation is, therefore, a menace to the rest of Australia. … . The interests of the whole continent, therefore, demand that the railways to connect Port Darwin and Western Australia with the other Colonies should be made as soon as possible.

Senator Dobson:

– The Port Darwin line should be constructed first.

Senator BEST:

– I have endeavoured to draw the attention of honorable senators to these sources of information, so that they may act with the fullest knowledge. What I have read shows most conclusively that in the interests of the Parliament, as well as of the engineers who will be called upon to advise, it is very necessary that a further investigation should be made by means of a survey, in order that we may be able to come to a wise and definite decision. I desire, in fairness to Western Australia, which is crying out for a survey, to show its bona fides. It is already pledged to carry out the widening of the line from Kalgoorlie to Fremantle, concurrently with the construction of the railway from Port Augusta to Kalgoorlie. My honorable friends opposite have asked for information first as to the consent of Western Australia to this project. I wish to draw their attention to an Act of Parliament of Western Australia, which was assented to on the 29th September, 1903. It is -

An Act to enable the Parliament of the Commonwealth to make laws for the construction and maintenance of a railway from Kalgoorlie to the eastern boundary of Western Australia, and of a railway from the port of Eucla to a point intersecting the route of the aforesaid railway.

The preamble recites the reasons for the enactment, and section 2 provides -

Subject to section 6 hereof, the Commonwealth Parliament may make laws for the construction and maintenance -

Of a railway from Kalgoorlie to the eastern boundary of Western Australia, commencing at the termination of the existing railway system of the State at Kalgoorlie and proceeding thence to the said boundary by such route as the Commonwealth Parliament may determine ; and

Of a railway from the port of Eucla running due north to a point intersecting the route of the railway aforesaid.

My honorable friends will see that there is direct consent and authority to enable the Commonwealth Parliament to at once proceed. I have stated that Western Australia has shown its bona fides by agreeing to incur a considerable expense in making uniform its own gauge.

Senator Dobson:

– I am obliged to the Minister for showing that South Australia has not proved its bona fides.

Senator BEST:

– That is not the point with which I am dealing at present. Section 4 of the Act provides -

Not later than the time when the Commonwealth Parliament commences the construction of the first mentioned railway, the State of Western Australia will commence the construction of a railway from Kalgoorlie to Fremantle on the same conditions as to gauge and rails as those laid down by the Commonwealths Parliament in connexion with the work undertaken by it, and shall complete the same by the time the Commonwealth has completed the railway aforesaid.

Section 6 reads as follows: -

This Act and the authority hereby given to the Commonwealth Parliament shall cease and be void unless the said Parliament shall have agreed’ to and shall have commenced the actual construction of the said railways within five years from the passing of this Act.

It must be evident to honorable senators that Western Australia has at least shown its earnestness in the matter by undertaking to incur certain expenditure. It has gone even further than that, because it has undertaken if necessary to contribute towards the cost of the railway. A paper which was laid on the table on the 20th May, 1904, contains the following telegram, dated 6th May, from the then Prime Minister, Mr. Watson, to the Premier of Western Australia-

Re Western Australian railway. Representations made to me, feeling of membersFederal Parliament towards proposal favours belief that opposition would be materially lessened if your Government indicate willingness contribute stated proportion of loss, if any, during the first ten years. As matter under consideration of Cabinet, early reply desired.

The reply from the Premier of Western Australia to Mr. Watson is dated 18th May, 1904, and reads as follows : -

On condition that Commonwealth is allowed a free hand as to route and gauge of railway, this State will be prepared, for ten years after line constructed, to bear a share of any loss in excess of our contribution on a population basis. It would be premature to fix exact proportion we are prepared to pay at this stage, but I am confident that it will be liberal, and satisfy the Federal Parliament of our sincerity in this connexion, and our belief that the work will soon be a directly paying one.

In addition to that, and yielding to a bare expression of opinion on the part of the Federal Parliament, I understand that the Government of Western Australia has reserved a strip of land twenty-five miles wide on either side of the proposed line.

Senator Givens:

– For whose use?

Senator BEST:

– That, of course, will be determined after the construction of the railway. I have merely stated a fact.

Senator Dobson:

– But why is it reserved ?

Senator BEST:

– That is a matter for us to deal with afterwards.

Senator Dobson:

– Does not the Minister know why it is reserved?

Senator BEST:

– My honorable friend may make a shrewd guess for himself.

Senator Dobson:

– Is it reserved for a Jand grant railway ‘ or for the Commonwealth ?

The PRESIDENT:

– Order !

Senator BEST:

– I have been laying the matter with calmness before my honorable friend, and no doubt later on he will deal with that point with his customary eloquence and ability.

Senator Dobson:

– Surely we have the light to know why that strip of land is reserved.

Senator BEST:

– My honorable friend’s curiosity is so great that if it were gratified there would be nothing left to be said hereafter. What is the position of “the State of Western Australia, which is claiming the survey which the Bill, if passed, will authorize? It is not a mere mushroom State, but one of the most valuable provinces of Australia. Its area is about 625,000,000 acres, or practically a third of this vast continent. Its progress and prosperity have already been very substantially shared by the other parts of Australia. It is true that its population at the present time is only 550,000. But small as its population is it has produced in gold upwards of £74,000,000.

Senator Dobson:

– All showing that it can afford to build its own railways.

Senator BEST:

– All showing how desirable it is for us to authorize a survey in order to determine whether it will be wise to connect that vast province with the eastern States. Gold was first discovered in Western Australia in payable quantities in 1886, In 1896 the annual output first Teached the value of £1,000,000.F or the year ending 31st December, 1905, the annual output was valued at £8,305,652, and the total output from 1886 to 1st July, 1907, is valued at £74,354,345 The dividends paid for the year ending 31st December, 1905, from gold mining in Western Australia amountedto£2,167,639, rand the total dividends paid from 1890 - when the first dividend amounting only to £1,250 was paid - up to the 1st July, 1907, amount to £16,461,915. The monthly output of gold in the State is valued at about £700,000. To sum up succinctly some of the results shown by the marvellous progress of Western Australia, it may be stated that during the decade between 1894 and 1903, the population increased by nearly three times; the general revenue, five and a half times; the railway revenue, eleven times ; the post and telegraph receipts, four times; the Savings Bank deposits, eleven times; the shipping tonnage, two and a half times ; the value of imports, over three times ; of exports, eight and a half times; and the area under crop, three and a half times.

Senator Stewart:

– Then why do they not build their own railways?

Senator Macfarlane:

– The honorable senator has shown that they are rich enough.

Senator BEST:

– I have shown that the State of Western Australia is possessed of such wealth that it is desirable that we should consider this request for railway connexion with that State by a national line. In conclusion, I would again point out that this is but a Survey Bill to enable information which is required by the engineers and by Parliament to be obtained; that, sooner or later, the railway must be constructed, and that it is desirable that Parliament should have the fullest information in order that we may be in a position to decide when it should be constructed. I would also remind honorable senators that there can be no real and complete Federation of Australia until the eastern States and Western Australia are linked together, and that the longer we refuse what is a reasonable request for the passage of this Survey Bill, the more shall we be increasing and intensifying that un-Federal feeling, which it is most undesirable should exist in any portion of Australia.

Senator Dobson:

– That is nonsense. It is not an honest argument.

Senator BEST:

– I would also say that the Inter-State trade to be done will demand the proposed connexion sooner or later.

Senator Dobson:

– Do we trade by land, and not by sea?

Senator BEST:

– Facilities must undoubtedly be afforded for trade, both by land and sea.

Senator Dobson:

– The honorable senator should tell that to theChambers of Commerce.

Senator BEST:

– It is evident from the information I have supplied that the proposed railway would be calculated to open up a valuable territory. In the matter of the trade between the eastern States and Western Australia, I may say that the exports from the eastern States to Western Australia last year amounted in value to something like £3,000,000.

Senator Dobson:

– Whathas all this got to do with it? Why should the Federal Parliament do this work ? Why should not the States concerned build their own railways ?

Senator BEST:

– I have noticed that when Senator Dobson is in a fix that is a favorite statement with him.

Senator Mulcahy:

Senator Best has been in the same fix.

Senator BEST:

– No doubt.

Senator Findley:

– Tasmania has received some concessions from the Commonwealth, the responsibility for which she might have taken upon herself.

Senator BEST:

– I further urge that the Bill should be passed because, rightly or wrongly, the people of Western Australia feel that they have made sacrifices in connexion with Federation. Certain representations were made, not, I admit, with any legal authority, but by certain prominent public men, prior to Federation, that if Western Australia joined the Federation, the railway would inevitably be constructed. I say that these representations were not legally binding.

Senator Dobson:

– They are not morally mentionable.

Senator BEST:

– But they are sufficient to intensify the grievance the people of Western Australia feel that they have. In the interests of the Commonwealth itself, if the passing of this measure would relieve the pent-up feelings of irritation which obtain in Western Australia, it is certainly desirable that they should be put an end to.

Senator Stewart:

– We have no evidence of that. The people would not travel by the line if it were built to-morrow.

Senator BEST:

– I submit that, in the circumstances, I have shown that the information at the disposal of honorable senators, and to which I have drawn their attention, constitutesprima facie a reason why this Survey Bill should be passed so that with the least possible delay the information which is desired by the engineers and by ourselves as to the route of the railway may be supplied.

Senator Dobson:

– Before the honorable Senator resumes his seat, I would like to ask whether he has any later letters and’ telegrams about the consent of South Australia other than those to which he has referred. Was no information on the subject obtained from the South Australian Government when theNorthern Territory Agreement was under consideration ?

Senator BEST:

– I have referred toa number of letters and telegrams.

Senator Dobson:

– But they are of old dates.

Debate (on motion by Senator Givens) adjourned.

Sitting suspended from 12.55 to 2 p.m.

page 1043

COMMONWEALTH SALARIES BILL

In Committee (Consideration resumed? from 25th July, vide page 959) :

Clause 2 -

The taxation by a State, in commonwith other salaries earned within the State, of -

the official salaries of officers of theCommonwealth earned in the Stateafter the commencement of this Act; and

the allowances, paid after the commencement of this Act, of Members of the Parliament elected in the State, shall not, if the taxation is not at a higher rateor to a greater extent than is imposed on othersalaries of the same amount ‘ earned in theState, be deemed -

to be an interference with the exercise of any power of the Commonwealth, or

to be inconsistent with any Act by or in pursuance of which the salary is fixed or made payable.

Upon which Senator McColl had moved by way of amendment -

That after the word “State,” line 4, the words “ before and “ be inserted.

Senator FINDLEY:
Victoria

.- High constitutional authorities urge that even if this Bill is passed, the position of Federal officers and members of Parliament with regard to income taxation imposed by the States will be almost the same as before, and claim that the only way to overcome the difficulty is to amend the Constitution. I am not sure that certain honorable senators and members of another place are very anxious at any time for an alteration of the Constitution, which can! only be accomplished by a long process. A Bill for the purpose would have to beintroduced and carried by an absolute majority in both Houses, and would then have to be submitted to the whole of the people on a referendum. It would further have to receive the votes of a majority of the people in a majority of the States beforeit became law. With the establishment of Federation a High Court became essential, and we created it.. We should now have the greatest respect for and confidence in it.

The CHAIRMAN:

– It will not be competent for the honorable senator to discuss the whole Bill on- the amendment and clause now before the Committee. The question at issue is whether this taxation shall be made applicable both before and after the passing of the Bill.

Senator FINDLEY:

– The whole Bill is the outcome of a suggestion by the High Court pointing a way out of the difficulty. I shall vote against the amendment. The Privy Council decided that the incomes of Federal officers could be taxed by the States, whilst, on the other hand, the High Court, a body created by the people of Australia, held that they could not. The Federal employes, having absolute confidence in the High Court, acted on its decision, and in so doing they did not disobey any law; but this amendment would penalize them very heavily for taking that course. The Premier of Victoria has boasted ‘that he will recover not only the amount claimed from Federal employes, but also double tax, fines, and heavy interest.

Senator McColl:

– He did not do so. That was remitted to those who paid.

Senator FINDLEY:

– If this amendment is carried,, he will still have the power to do it, and I do not think this Chamber desires to do an injustice to any section of the community. The Bill will enable the States’ Governments to impose taxation in the future on Federal employes, but it would not be right to make it retrospective. Probably those who have not paid the tax were never asked to pay it, and if they had been asked, they were perfectly justified in refusing until the High Court gave its decision. The Bill will, I think, overcome the difficulty that confronts the States Governments. It is on the lines of the suggestion thrown out by the High Court, which ought to be the best judge of the possible legal remedy. If, however, it is made retrospective, it will lead to endless litigation, and will seriously affect many who have not acted in contravention of the law. I understand that the Government will not accept this amendment. It may be that there is. a moral obligation to pay, but we are here not to deal with moral obligations, but to do our business in a constitutional way.

Senator Col Neild:

– It is only a legal obligation.

Senator FINDLEY:

– As the honorable senator says, we have only a legal, and not a moral, obligation. I have the highest respect for the High Court, and, believing that their suggestion, as embodied in the Bill, will meet the difficulty, I hope it will be carried and the amendment rejected.

Senator McGREGOR:
South Australia

– I hope Senator McColl will withdraw the amendment, because the High Court has declared that in the past Commonwealth servants were not liable to income tax. If they were liable there was no necessity to introduce this Bill. The Bill itself is an evidence that there was something wrong previously, and an acknowledgment that Federal officers were not liable. There are grave doubts whether they will be liable even if the Bill is passed. Senator McColl made a very strong point of the fact that some highly sensitive and moral public servants paid the tax whether they were obliged to or not. They were so conscientious that they paid something they were not legally required to pay, for what reason I do not know, unless it was the leadings of a supersensitive disposition that does not belong to one man in a hundred. Senator McColl’s argument is that it will be very unfair to those who have foolishly paid if those who have not paid are allowed to go free. If we pass the clause as it stands, all who have paid will be entitled to get their money back, because we have passed an amendment of the Judiciary Act, by which, if they went to law to recover what they had paid, the case would go straight to the High Court, which has already declared that they should not have paid. The High Court, then, to be consistent, would have to direct the States taxing officers to hand the money back. I do not say that there is anything to compel those highly conscientious and scrupulous individuals to apply for a refund of their money, but if they want to abide by the strict letter of the law, then, if these two Bills are passed, they should put in a claim for a refund, and there is not the least doubt that the High Court would order it to be made to them. I am not in a position to say whether the Court will compel Mr. Bent or Mr. Prout Webb to pay fines and compound interest as well. Senator McColl need not be in the least alarmed about any injustice arising owing to some having paid and others not, seeing that those who have not paid will not be required to pay, and those who have paid will be able to get their money back if they make application for it, and their cases come before the High Court.

Senator McCOLL:
Victoria

.- I am rather surprised at the way honorable senators have received the amendment. The argument seems to be that a man is not to pay what is just or what he is legally entitled to pay, but only what he cannot help paying. If a man engages a cabman, and finds afterwards that the cabman has no licence, and is, therefore, not legally entitled to make a charge for his services, I suppose, according to the arguments of honorable senators, that man is legally entitled not to pay him. Having regard to the fact that hundreds of Federal public servants have paid the tax recognising their dual citizenship and the benefits conferred upon them by the Governments of the States in which they live, it is not unfair to provide’ that those who have hitherto avoided payment shall be called upon to meet their obligations. With regard to members of Parliament representing other States, who have to attend in Melbourne for the performance of their duties, I do not think that they ought to have been taxed by Victoria at all. I am prepared to support a proposal by which theywill be liable to pay only in their own States if those States levy income tax. It certainly is not fair that the representatives of States who live in Melbourne for only four or five months in the year should be compelled to pay income tax here. But the position is quite different in the case of public servants, who receive all the benefits of citizenship and refuse to pay their fair share towards the expenses of government.

Question - That the words proposed to be inserted be inserted - put. The Committee divided. .

AYES: 7

NOES: 21

Majority … …. 14

AYES

NOES

Question so resolved in the negative.

Amendment negatived.

Senator Col. NEILD (New South Wales) [2.22]. - I move -

That the word “ allowances,” line 7, be left out.

I submit this amendment because an allowance is recognised universally not to be income, but merely payment to cover expenses. In every walk of life salaries and allowances are distinct matters. . Yesterday there was cited the case of a commercial traveller who is paid a salary or commission on the business he transacts, and also an allowance for expenses. Upon such an allowance no Government in the world has ever made a claim for income tax. In the Public Service there are officers who have to travel, and who receive allowances. There are Ministers of State who receive travelling allowances. No one will be prepared to say that they ought to pay income tax on allowances received on account of expenses incurred in the performance of their duties. A State Minister sometimes goes into the country to open a railway, a culvert, or something of that sort. He is away from home perhaps for three days. I do not know what allowance is made in Victoria, but. in New South Wales the allowance to a Minister is £2 2s. per day. Perhaps he takes an officer with him to carry his portmanteau and bring his shaving water up to him in the morning.

Senator BEST:
Vice-President of the Executive Council · Victoria · Protectionist

: - In order that there may be no misunderstanding, I desire to state that when Ministers travel in the Commonwealth they pay their own expenses out of the parliamentary allowance of £400, and draw nothing additional, as is the custom in the States. Of course, if they are accompanied by any officers, the latter each get an allowance in accordance with a scale.

Senator Givens:

– And on which they, are not expected to pay income tax.

Senator BEST:

– That is perfectly true. The arguments of Senator Neild are full of force, and very difficult to refute; but there is no doubt that the practice heretofore followed has been upheld by the Privy Council.

Senator Col Neild:

– But the Government have been knocking it down.

Senator BEST:

– The law, as laid down by the Privy Council, is that members of Parliament are liable in regard to their allowances.

Senator Col Neild:

– Where is that to be found in the decision of the Privy Council ?

Senator BEST:

– That is the Privy Council’s decision.

Senator Sayers:

– The Government have knocked that decision on the head by the Judiciary Bill.

Senator BEST:

– Undoubtedly we are trying to do so by the Judiciary Bill, but, at present, the High Court says that public servants are immune, and the Privy Council says that they are liable to income tax-

Senator Col Neild:

– There is not one word in the judgment of the Privy Council about allowances. The Minister is misleading us.

Senator BEST:

– Provided, of course, that this can be held to be income, as no doubt the States claim that it is.

Senator Col Neild:

– But the Privy Council has never expressed an opinion about the allowances being income. That point was never before it.

Senator BEST:

– So far as the salaries of officers are concerned, the Privy Council upheld the principle that they are liable to taxation. And the various States have sought, as far as they could, to declare allowances to be income, and to tax members of Parliament accordingly.

Senator Col Neild:

– Was the question of parliamentary allowances ever discussed before the Privy Council?

Senator BEST:

– No, but I am only talking about the principles of the cases which have been decided. What I am urging now is that such an allowance may be taken to be income. What the Bill seeks to do is, if there is a liability at all, to prevent the taxation of the allowances to members of Parliament who come from other States by this State. My honorable friend knows that that has been attemptedin the past. Under his amendment, if carried, he would leave himself practically open to that question being raised hereafter. The object of the Bill is to make a limitation in regard to these allowances ; and, holding the view he does, Senator Neild would be acting more wisely if he were to accept the proposal of Senator Stewart, so that, under no circumstances, should the allowance, if liable at all, be liable beyond the balance which islef t after deducting certain expenses. I cannot oonsent to the amendment.

Senator Col. NEILD (New South Wales) [2.42]. - I am afraid that, in his anxiety to make himself clear to us, Senator Best has made himself dense to himself, because I can gather nothing more from his speech than this : “If you omit the allowance from taxation, it is possible that some State may pursue you for income tax. Therefore, leave in the words and consent to be taxed by every one who wants to obtain: a tax from you. You had better put in the whole lot, and let them tax it.”

Senator Best:

– We propose a limitation to the State by which a man is elected.

Senator Col NEILD:

– My honorable friend based part of his argument on a proposal which has not yet been submitted, and, if it is not out of order, I would say that I am not at all satisfied that the deduction proposed to be made by Senator Stewart is sufficient, because travelling expenses in Australia run into a good deal of money.

Senator Givens:

– Especially in Melbourne, where they fleece us.

Senator Col NEILD:

– I have no complaint to make of the treatment I receive in Melbourne. Notwithstanding Senator Best’s appeal that it is better toannounce ourselves ready to be plucked than to show an indisposition to have our feathers wrung from us, I intend to divide the Committee on my amendment.

Senator Lt Col NEILD:
NEW SOUTH WALES · FT

-Col. GOULD (New South Wales) [2.45].-I should like to say a few words, because I do not see eye to eye with the Vice-President of the Executive Council on this question. In my opinion, the wording of the Constitution involves a marked difference between the payment made to members of the Federal Parliament and that made to Ministers of the Crown. Ministers of the Crown are specifically paid “ salaries.” A certain sum of money is to be voted to His Majesty for the purpose of defraying the salaries of Ministers of the Crown.

Senator St Ledger:

– £12,000 a year.

Senator Lt Col GOULD:

– Yes, and honorable senators will find that, with respect to members of the Parliament, what is provided for is an “ allowance,” and not a salary. When we speak of a man receiving a salary, the assumption is that he gives his time in return for that salary, but honorable senators coming here give time which -is taken away from the occupations which they ordinarily follow, and for the portion of their time, which they devote to the service of the country in Parliament, they receive an allowance which is supposed to be adequate to cover the expenses reasonably incurred in the discharge of their parliamentary duties. I do not think that we ought now to say that we regard the “ allowances “ paid to us as salaries in respect of the services we render. A salary is paid to Ministers, to the President, the Speaker, and the Chairmen of Committees of the two Houses, and it forms ho portion of their allowances as members representing their respective States or electorates. If we are to adopt Senator Stewart’s proposal, and make some provision for exemption in respect of the amount of income liable to taxation, let me direct the attention of the Committee to the fact that we shall then be endeavouring to engraft our legislation upon the income tax legislation of the States by providing for the exemption under State legislation of certain allowances which we think should not be liable to income taxation. Whilst the Government and the Committee take up the position that the law does not require the payment of income tax on Commonwealth salaries, it is proposed that Ave shall not regard the attempt of the States to levy such a tax as “an interference with the exercise of any powers of the Commonwealth, but in doing so, we are making a condition with the States that they must, in their Income Tax Acts, provide for certain exemptions. To my mind, if the course proposed is pursued, we shall get into a difficulty. Will not that really be mixing up- the legislation of the States and ‘of the Commonwealth in a somewhat improper way? If we are to make these allowances the subject of States taxation we must assume that the States will treat the matter on fair and reasonable lines, and will provide by their own legislation for deductions from the amount liable to income tax, of the expenses incurred by members of the Federal Parliament in earning their allowance. To my mind, that is the only way in which the matter can be dealt with. T have throughout held the view that these allowances should not be regarded as a subject of taxation. It may be that my view is incorrect, as a matter of law, but at any rate that is the principle I have always recognised in the matter. If I am asked whether I consider the allowance made to members of the Federal Parliament as a salary and from that point of view an adequate remuneration for the services rendered, I immediately say that, in my opinion, it is not. I do . not think that we should take any action whatever which would make the position of a member of the Federal Parliament attending here from distant States at great expense and inconvenience, more difficult from a pecuniary point of view than it is at the present time. It might be said that I am seeking my own benefit, and the benefit of my fellow members of this Parliament, but I say that on broad national grounds, it is undesirable that the allowance made to members of this Parliament should be so reduced that they might have some difficulty in living respectably upon it. Very many of them are obliged in the performance of their parliamentary duties to neglect their own businesses. When they retire from Parliament they must again take up thethreads of their private business, and very many know the difficulty involved in that. In the circumstances, the Committee should be particularly careful how it attempts, by its own legislation, to interfere with what are strictly allowances cut down as low aspossible to permit members of this Parliament to present a respectable appearance, and keep their families in moderate comfort and decency. . I should be very glad if the Minister could see his way to. leaveout the reference to “ allowances.” . Webelieve that the decision- of the High Court in the matter is correct, but we donot desire to’ come into conflict with the States unnecessarily, . and it is therefore proposed that, in regard to our emoluments, we shall not regard it as an interference on the part of the States to impose an income tax, but we should not permit the States Governments to unduly interfere with the allowance paid to us for the services we render in this Parliament. We meet in the State of Victoria only because by an accident the Federal Parliament is not sitting at the Federal Capital. If it were, there can be no question that none of the States would be entitled to interfere with our parliamentary allowance. In these Houses of Parliament, we are in Federal Territory, strictly speaking, and should not be called upon to submit to taxation of this character. Officers in receipt of salaries granted to them by the Federal Parliament, are citizens of one or other of the States, and it may be said that as they are in receipt of salaries paid them for their services, and enjoying the advantage of good government in the State in which their homes are, it is, therefore, reasonable that they should be called upon to pay income taxation in common with other residents of the. State. Although they are not legally liable, we say in this Bill that we are willing to waive the question so far as it may be regarded as an interference with the rights and powers of the Federal Parliament.

Senator MULCAHY:
Tasmania

– We are, as Senator Gould has pointed out, discussing a very delicate situation indeed. The High Court has decreed that Federal salaries and emoluments shall not be subject to taxationby the States. We are trying now, in a certain way, to avoid the effect of that decision, and to make Commonwealth officers amenable to State income tax, in just the same way as are other residents of a State. But it is now proposed that we shouldmakea very important distinction - that we should permit the States to tax the salaries of Commonwealth public servants as heavily as they may think proper, while we exempt our own salaries.

Senator Givens:

– We are not receiving salaries.

Senator MULCAHY:

– If there be any injustice in connexion with the payment of members of the Federal Parliament, the remedy is in the hands of that Parliament. It is admitted that there are anomalies, and that members of this Parliament, who come from far distant parts of Queensland and Western Australia, and have not the opportunity to return weekly to their homes as many others can, are put to more expense, and are entitled to a larger allowance than members of the Parliament who live in Melbourne, Sydney, Adelaide, and even Hobart and Launceston. The £400 a year paid to honorable senators may be called an “ allowance,” but it is, after all, a salary, whatever we may call it. In this matter I find that members of the Labour Party are as conservative as anybody else: The labourer is worthy of his hire, and what we get is a salary of £400 a year for our services, and let us be honest about it.

Senator de Largie:

– Why blame the Labour Party ?

Senator McGregor:

– Because the honorable senator must have a shot at them.

Senator MULCAHY:

– No, but because of the statements made by honorable senators who are members of the Labour Party, and who lay stress on the fact that the amount we receive for our services is an allowance and not a salary.

Senator Stewart:

– It is so termed in the Constitution.

Senator MULCAHY:

– I am aware that itis, but that is only a term, and call it what we may, it is income. Why should we, by special legislation, exemptour selves from the taxation which is imposed on . the people of -the States we represent? Why should we dictate, as has been proposed here, to the. States, and compel them to make a distinction between one. class of income and another? I hope that the Committee will be very careful as to what it does in connexion with this particular clause. It seems to me that it will need amendment in any case, because there are allowances and allowances. By the Constitution, what we receive for our parliamentary services is termed an allowance, but we know that from time to time members of the Federal Parliament, as, for instance, some of the members of the Tariff Commission, are appointed to carry out special duties, which entail personal expenditure, which is returned to them in the form of an allowance. That is very different from the allowance paid to members for their services as members of the Parliament. ‘ A man may draw an allowance of £400 a year as a member of the Federal Parliament, and may obtain leave of absence for a whole session, as, I believe, was done in one case. It is desirable to amend the clause to make some discrimination between the term “ allowance “ under the Constitution and the refund of expenses in connexion with the performance of special duties.

Senator DE LARGIE:
Western Australia

– I am sorry that I must vote against the amendment. The amount which members of this Parliament receive is, to a certain extent, salary as well as allowance.

Senator Stewart:

– It cannot be both.

Senator DE LARGIE:

– I believe that it is. I agree with the statement that there are anomalies in our payment, and that the remedy is in the hands of this Parliament. There can be no two opinions on the question that the scale of allowances at present paid is unfair to some members of the Parliament as compared with others. We must consider at the same time the effect of our taking, as legislators, a preference that we do not extend to others.

Senator Givens:

– It is not proposed to tax Federal officers on their allowances for travelling expenses. Many of them when they have to travel are given a very handsome allowance, which is not subject to taxation.

Senator DE LARGIE:

– The same consideration is given to the honorable senator when he is doing the business of this Chamber on a Select Commitee or Royal Commission.

Senator Givens:

– A member of Parliament is always doing the business he is sent here to do, but he does not get anything more than his fixed allowance for it.

Senator DE LARGIE:

– It is splitting hairs to say that the £400 a year given to members of Parliament is anything else than a salary, although I quite agree that no member can make use of the whole sum as a salary, as a large cut is taken out of it in travelling expenses. But we must look at the impression it will make on the public mind if we exempt ourselves from taxation whichwe apply to other members of the community. This is a way of dealing with the matter that does not commend itself to me, and I cannot support it. I’ wish to correct Senator Mulcahy’s remark about the Labour Party. I was not aware that the question had been made a party one in this Chamber.

Senator Mulcahy:

– I was not treating it as a party question.

Senator DE LARGIE:

– The honorable senator most decidedly did so, and sought to blame the Labour Party as the only one in this Chamber willing to take the course now proposed. I am the first Labour member who has spoken on it, and I am against it.

Senator Col. NEILD (New South Wales) [3.3]. - In all my parliamentary life, I have never listened to so admirable an example of the ad captandum valgus form of oratory as Senator Mulcahy’s speech. I cannot charge the honorable senator with being so deficient in intellect as to fail to recognise the difference between a salary for services and an allowance for expenses. I believe he has a knowledge of commercial transactions, and if I were hip worst enemy instead of a passingly good friend, as I hope I am, I would not accuse him of being so ignorant as not to know the difference. The honorable senator deliberately overlooked it. If I did not think he did so deliberately, I should have to accuse him of being a fool.

Senator Dobson:

– Is it not income within the meaning of the Income. Tax Acts? Whoever believes it is not must be a fool.

Senator Col NEILD:

– There seems to be a singular similarity of view on this subject on the part of the representatives of the small fly spot of the Commonwealth - Tasmania. It ismerely a tribute to the prejudiced, the vulgar, and the ignorant to appeal to class feeling in the way Senator Mulcahy, did just now, by saying that this was an attempt on the part of honor - able senators to treat themselves differently from the public servants. I have voted against this Bill all through. I have voted against taxing the public servants, and if this amendment is not carried, I shall most religiously vote to knock out the third clause, so as to bring the GovernorGeneral’s salary under taxation also. I most positively promise the Government that I shall take that step, and then we shall see whether they will go on with the Bill, because they know they cannot go on with it, seeing that then they would be taxing a statutory payment. That is a point regarding members’ allowances which has not been touched upon yet, and now I shall let myself go upon it. The £400 allowance to members of Parliament is a statutory obligation.

Senator Mulcahy:

– Until Parliament otherwise determines.

Senator Col NEILD:

– Parliament is not otherwise determining. Parliament is inviting the States Governments to do what it is not game to do itself. The Government are not game to bring down a direct proposal, and so they come sneaking along with a sort of ‘ ‘ Let me at him : for God’s sake hold me back” style in this Bill, “sooling “ Mr. Thomas Bent and Mr.

Joseph Hector Carruthers, and other excitable State politicians on to this infinitesimal taxation of members’ hotel bills, while all the time having the most profound regard for the instinct of self preservation, by taking the utmost care to do nothing directly themselves. I offer my condolences, my deepest sympathy, to the VicePresident of the Executive Council. . He is undertaking a task which his own genial nature and fighting characteristics must make to him one of the most nauseous doses that he has ever swallowed in the whole of his political career. The Bill does not authorize or direct, at the instance of Parliament, any alteration, in the £400 allowance, but it is most distinctly an attempted interference with an amount which is fixed, just as the Governor- General’s salary is, by Statute. The Government know perfectly well that they cannot tax the GovernorGeneral’s salary for that reason, nor can they tax our allowances in this way,’ unless we are supine enough to let them for the sake of a twopenny-halfpenny demonstration to the outside world and the few censorious writers in the States’ press, who have abrogated the use of ink and taken to vitriol. They do not trouble me, and honorable senators would be showing a little more of the courage, self respect, and dignity that ought to attach to a Legislature if they were not so perilously disposed to place themselves at the mercy of any fractious author of a few lines in a newspaper about themselves and theirdoings. The more a public man does, the more he raises up opponents, but that does not make his opponents right and him wrong. No man has done good and lasting work in the world without raising up a horde of enemies.

The CHAIRMAN:

– The honorable senator is straying somewhat from the question before the Chair.

Senator Col NEILD:

– The proposal which I seek to amend is so singular that I admit the soft impeachment; and will cry to avoid any repetition of the offence. Whether the amendment is carried or not, I shall later on take a serious point of order on this ridiculous measure, which we know positively is only a sort of electioneering placard.

The CHAIRMAN:

– The honorable senator is not in order in discussing the measure as a whole at this stage.

Senator Col NEILD:

– The whole Bill practically lies in one clause, the object of which is to authorize the States to do what we, apparently, have not the pluck to do ourselves. It is a most paltry and despicable class of legislative proposal. I seek to improve it in one direction of equity by my amendment, and I hope, whether that amendment is agreed to or not, that some of the other amendments, which will certainly be tabled, will be carried. I also openly indicate now that when the amendment is disposed of I shall take a point of order as to whether the Bill is not improperly before the Chamber, inasmuch as it is a measure for the imposition of taxation. If it does not impose taxation directly, it authorizes its imposition, and the difference between an actual imposition and an authorization is so slight-

The CHAIRMAN:

– The honorable senator must not discuss that point until he raises it.

Senator Col: NEILD:

– I thought it would be convenient for me to state it, and that is why I have stated it now. .

Senator WALKER:
New South Wales

– It is my intention to support the amendment. Honorable senators who hail fromNew South Wales are in a peculiar situation. We have no liability whatever in this matter, and we think it only fair that honorable senators who come from other States should be placed in an equally advantageous position. In New South Wales income tax is not demanded on the allowances of members of this Parliament.

Senator Col Neild:

– And income tax generally is to be abolished in that State.

Senator WALKER:

– Yes, it is. Consequently, we have no personal feeling. These allowances are legitimately socalled. Take the case of some of our colleagues. Senator Chataway, for instance, has to pay another man to do his work when he is away from home. In his case, therefore, the payment is purely an allowance. I may mention that I gave up the position of president of a bank in order to have the honour of being a member of the Federal Parliament. I consider it to be a great honour, and not a matter of pounds, shillings, and pence at all. An allowance such as is paid to us is not fairly, a matter for taxation. The allowances paid to officers are exempt. In cases where salaries are paid, like those of the President of the Senate and the Speaker of the House of Representatives, I quite agree that in-. come tax should be charged; but we are making fish of one and flesh of another when we say that the payment to members of this Parliament are not allowances, and should be taxed. I intend to vote for” the amendment.

Senator TRENWITH:
Victoria

– We can hardly understand clearly the meaning of this clause without considering the object of theBill. It is not, as Senator Neild has indicated, to initiate taxation, but to render operative taxation already in existence. In considering whether this clause which is intended to deal with the position of members of the Federal Parliament ought to be passed, we have to consider the allegation that our remuneration is an allowance and not a salary. In the various Payment of Members Statutes of the States, it has been called an allowance. We know why that was done. The fact is that the struggle in the States over this form of remuneration was always called a Payment of Members agitation. There were Payment of Members Bills to give effect tq the public demand. Consequently the payment is, in my opinion, a salary - inadequate, I am prepared to affirm. The term was used in order to salve the prejudices of persons who were compelled to vote for payment of members after years of opposition. But though it was called a reimbursement, it was actually, in the minds of the public and in the minds of members of Parliament, a salary which many of them, myself amongst them, considered altogether inadequate: The question of whether the income tax officers, supposing this clause to be carried in the present form, can levy income tax upon the allowances of members of Parliament, is one that should not be discussed and settled in this Chamber. It is a question for the Court. It is quite possible that, although they are taxable, and are made tax- . able by this clause, members may successfully; set off against a portion of the allowance the expenses incurred in pursuance of their business as members of Parliament.

Senator Mulcahy:

– Doesnot the honorable senator think that there should be some discrimination between the allowance for travelling expenses of the representativesof various States ?

Senator TRENWITH:

– My own belief is that members of this Parliament can successfully, in the Courts, make a claim for a set-off on account of legitimate expenses incurred in transacting their business as members of Parliament, exactly as a business man sets off the rent of his business premises, salaries paid, and advertising charges. A business man’s gross income may be £10,000 a year, but his expenses may be £9,800. If that be so, he has no income tax to pay. Similarly, it appears to me, that the Courts would allow exemptions on account of the expenses incurred by the representatives of the various States.

Senator McGREGOR:
South Australia

– If this term “allowances” is inserted in the Bill for the purpose of bringing members of the Federal Parliament within the income tax net, the Government is going the wrong way about it. The proper way would be to amend that section of the Constitution that characterizes the payments made to members of Parliament as allowances.There is no more difficulty in doing that than in carrying this Bill through Parliament. The Bill is an attempt ito rectify something that is supposed to be wrong. If it is wrong that members of the Federal Parliament should be exempt in their own States from income tax, the term “ allowances “ should be altered, and the payment should be called income or salary. That would do away with all the difficulty. If the word “allowances” be retained in the Bill, some provision must be inserted also to define the difference between an allowance made to a member of the Federal Parliament, and an allowance made to a public servant when he is travelling, or an allowance made to the members of a Royal Commission. Otherwise there will be confusion, and it will be declared that the Federal Parliament was very clumsy in endeavouring to express its meaning. I do not think that those moral and virtuous senators, who are always declaring that they are prepared to sacrifice themselves to the last drop of their blood in the public interest have any right to display their virtue upon this clause. The whole question is whether the word . “ allowances “ should be retained. I think it should not. If the allowances paid to members of Parliament are desired to be brought within the area of taxation, it should be. done by a different method.

Senator STEWART:
Queensland

– I agree with every word uttered by Senator Neild, and must express my great surprise and regret at the remarks of Senator Mulcahy and Senator de Largie. They tried to make it appear as though we were seeking to impose a burden of taxation upon others, and to be relieved from it ourselves.

Senator Mulcahy:

– That would be the effect.

Senator STEWART:

– It does not matter two straws what the effect would be upon persons outside. I am governed entirely by the right and wrong of the question. “We are merely attempting to place members of this Parliament upon the same footing as officers of the Public Service and other people. I listened with great attention to Senator Trenwith’s remarks, and was surprised to find that, at the end of his speech, lie utterly demolished the arguments advanced at the beginning. He said that in the public mind the. allowance paid to a member of Parliament is a salary. It does not matter to us what the idea in the public mind is, but what the Statute means. Let us deal with realities. In the Constitution the £10,000 a year paid to the GovernorGeneral is called a “salary. Will some senator explain to me why that is so,, and why when the £400 paid to a member of Parliament is referred to in the Constitution, it is called an allowance. . Will some constitutional authority enlighten us as to why this difference exists?

Senator Mulcahy:

– To please the Tories.

Senator STEWART:

– I do not care a straw about pleasing the Tories, or the Liberals, or any one else. It was placed in the Constitution because there is a fundamental difference between the sum which is paid to the Governor-General and the sum which is paid to members of Parliament. When the sum of £12,000 which is set apart for ‘ Ministers is referred to, it is said that it is to pay their salaries. Ministers, in addition to ‘their salaries, get the parliamentary allowance of £400, and Senator Best, who is a member of the Government, told us this afternoon that Ministers treat that sum as an allowance for . expenses when they are travelling on Commonwealth business, and do not draw a special sum to cover such’ expenses. So far as I can discover, everything . points to the fact that the amount which we are paid is an allowance for expenses. In the latter part of his argument, Senator Trenwith said that this is not the place to deal with expenditure that might be set-off in furnishing a return to the Income Tax Commissioner, and that the State Court is the proper place in which to deal with the matter. He also went on to say that the sum °f j£4°° might be looked upon as our .gross income.

Senator Trenwith:

– Our gross income as members, of Parliament ; but I have a very large income independent of that !

Senator STEWART:

– I am very happy to hear it. I have none, I ana sorry to say. The honorable senator said that the sum might be looked upon as the gross income of a member of Parliament, and that he would have a verv good case in submitting certain deductions - expenditure incurred, I suppose, in attending to his duties in Melbourne, travelling around the country to give an account of his stewardship, and trying to persuade the electors to vote for him.- In making -that admission, the honorable senator, in my opinion, gave away the whole position. In ordinary businesslife we never hear of a gross salary.

Senator Trenwith:

– We hear of a gross income.

Senator STEWART:

– Take an ordinary postal official who is living in Melbourne, and receiving a salary of £300. According to Victorian law, he is liable to income tax on his full income, subject, of course, to certain exemptions. But if he is sent into another State on business, or to another portion of this State, he is allowed expenses at a certain rate. He may be travelling during the whole year, or during a- large portion of it, and his allowances for that purpose may! amount to £200. I do not think that any Income Tax Commissioner would dream of charging him income tax on the sum of £200. The officer would merely pay income tax on his income of £300. Again, take the case of a military officer, such as the ‘Commandant. He is continually travelling throughout the Commonwealth, and as a necessary consequence draws a very large sum every year, in expenses. I do not think that the Income Tax Commissioner for any State would consider himself justified in levying income tax on those allowances for travelling expenses. .Members of Parliament are, I contend, in exactly the same position as those officers. The whole trouble appears to have arisen because of the difficulty which lay in the way of payment of members being adopted bv the various Parliaments. The Convention fixed the sum of £400, not as a salary, but as an allowance for expenses. If it had meant the sum to be a salary it would have said so, just as it did in the case of the Governor-General and in the case of Ministers. I am in favour of omitting the word “ allowance,” because I do’ not think that the money which w.e receive as members of

Parliament ought to be looked upon as a salary. I have no desire to shield myself, or to render myself immune from burdens which are imposed on other members of the community, but, on the other hand, I am not going to submit to exactions from which every other section of the Commonwealth is made free.

Motion (by Senator W. Russell) proposed -

That the Committee do now divide.

The CHAIRMAN:

– There being no seconder, the motion cannot be put.

Senator ST LEDGER:
Queensland

– I desire to explain the reason for the vote I am about to give. I listened with considerable attention to the weighty argument of Senator Gould, pointing out very clearly a strong technical distinction between an allowance and a salary. I can quite understand that after that very powerful argument, honorable senators should seek to assert their right to have the payment to themselves, which is called an allowance, regarded as such. But, on the other hand, I have gone over to the other side of the Chamber to assist to impose taxation upon Federal officers. I recognise that, apart from the technical description which may be applied to what we receive, we, in common with Federal officers, are servants of the public. For that reason, especially after the voteI gave, I do not feel inclined to avail myself of a technical distinction, and so vote against an imposition upon my allowance as a member of Parliament. I hope that I shall not come under Senator McGregor’s lash when I put myself up as a person who is going to sacrifice himself. I do not. wish to accept either his praise or his censure for having taken up that position. I give due weight to the technical distinction between a salary and an allowance, but as I have voted to make Federal officers liable to income tax retrospectively, as well as prospectively, 1 cannot vote to exempt my own allowance.

Senator FINDLEY:
Victoria

.- Before the amendment is put, I desire to ask the Vice-President of the Executive Council what’ is the legal distinction between an allowance and a salary ? A salary is a recompense for services rendered, and, according to the ordinary definition of the word, an allowance is synonymous with a salary. If there is no difference in a legal sense between a salary and an allowance, what object can be served by allowing the amendment to go to a vote? I may be wrong, but I hold the opinion that there is little if any difference between the words. Like otherspeakers, I feel that the sum of £400 is a salary, and I, as a member of Parliament, do not. want to be treated differently from any Federal officer.

Question - That the word “ allowances proposed to be left out be left out - put.

The Committee divided.

AYES: 7

NOES: 18

Majority … … 11

AYES

NOES

Question so resolved in the negative.

Amendment negatived.

Progress reported.

page 1054

PAPER

Senator BEST laid upon the table the following paper -

Precis of correspondence between the Commonwealth Government, the late Right Hon. R. J. Seddon, and the Government of the United: Kingdom, respecting the Navigation Laws of the Empire, and the question of coastal trade.

page 1054

ADJOURNMENT

Personal Explanation - Delay in. Deliveryof Letters.

Motion (by Senator Best) proposed -

That the Senate do now adjourn.

Senator W RUSSELL:
SOUTH AUSTRALIA · ALP

– I believe under the Standing; Orders an opportunity is afforded honorable senators to make an explanation if they think that necessary. I happened to leave the chamber last night about a quarter to 10 o’clock, though I had seldom been out of my seat until that hour, and I have been told that, during my absence, Senator St. Ledger made an attack upon me because I happened to say that in connexion witha certain Bill the honorable senator spoke strongly on one side and voted on the other. I recognise the position in which the honorable senator was placed, because he was in the arms of two other senators who took a different view, and he seemed to be to some extent under their influence. To say that I took advantage of him, and to say that I knew he had made a mistake in yoting is not correct; I knew nothing about it. But I can say that by the honorable senator’s wobbling, I expected him to take up the position he did.

The PRESIDENT:

– Order. The honorable senator desired to make an explanation, and he is not in order in making an attack upon a member of the Senate.

Senator W RUSSELL:
SOUTH AUSTRALIA · ALP

– I was not aware that I was making an attack, and I would not do so unless I was forced. I certainly would not attack an honorable senator in his absence. I complain that Senator St. Ledger attacked me during my absence from the chamber. If the honorable senator had a genuine ‘excuse to give why did he not avail himself of the forms of the Senate, and, coming to the table, admit that he had made a mistake? The mistake was not on my part at all, because there can be no doubtthat it was a clear change of front, which I was ashamed to see in any member of the Senate.

The PRESIDENT:

– Order!

Senator ST LEDGER:
Queensland

– I think that I made my explanation at the proper time and in the proper way, and in making it I did not utter a syllable that could be regarded as an attack upon Senator Russell. I spoke only of what happened in the division. I did not refer in any disparaging way to what Senator Russell had said with regard to myself . The honorable senator drew attention to what was a more or less ludicrous mistake on my part, but -I did not impute to him any desire to make an attack upon me, because I knew that he also was making a mistake. I hope the honorable senator will not think that I intended to in any way attack him. I did not.

Senator W RUSSELL:
SOUTH AUSTRALIA · ALP

– That does not trouble me.

Senator NEEDHAM:
Western Australia

– I wish to bring under the notice of the Vice-President of the Executive Council a question that concerns the Post and Telegraph Department. It has somewhat of a personal bearing, but when I give the particulars it will be evident that it is of some public importance also. A letter addressed to me from Fremantle, bearing the date 18th March last, and the Fremantle post-mark, . dated 19th March, was received by me to-day. If it takes something like four months for a letter to reach a member of the Federal Parliament, addressed to the Senate from Fremantle, bow long will it take for a letter to reach an individual whose address may not be of so conspicuous a character?

Senator de Largie:

– Does the honorable senator think that he got it too soon ?

Senator NEEDHAM:

– I do not.

Senator Findley:

– Did it come by rail or by water?

Senator NEEDHAM:

– The letter might have been of some considerable importance to the person to whom it was addressed. If, for instance, it had been addressed to a commercial man, and involved the loss of a few thousands of pounds in his business, what would have been the result ? I admit that during the interval between the posting and the delivery of the letter I was travelling in different parts of the Commonwealth, but I left particular instruction where correspondence was to be sent to me. Although I remained in Sydney ten days from the time when the letter in question is supposed to have left Orange, and I received whilst in Sydney several letters from Western Australia that had been forwarded to Orange from Melbourne’, strange to say, this letter, although returned to Sydney, went back to Western Australia unclaimed. I visited the Northern Territory, but I was three weeks in Melbourne before going north. Personally, the delivery of the letter has not affected me, but I think the Vice-President of the Executive Council should bring the matter under the notice of the responsible authorities, because it is possible that instances of similar delay may have occurred.

Senator Trenwith:

– I have a worse case. I have a letter dated the 16th, which I received on the 14th!

Senator KEATING:
Minister of Home Affairs · Tasmania · Protectionist

– Before my honorable colleague replies, and so closes the debate; might I say to the honorable senator who has just resumed his seat that, as the Minister representing the PostmasterGeneral, I shall be very pleased if he will give me the envelope in which the letter to which he refers was enclosed; I shall have inquiries made, and furnish him with the result.

Question resolved in the affirmative.

Senate adjourned at 3.57 p.m.

Cite as: Australia, Senate, Debates, 26 July 1907, viewed 22 October 2017, <http://historichansard.net/senate/1907/19070726_senate_3_37/>.