Senate
28 April 1932

13th Parliament · 1st Session



The President (Senator the Hon. W. Kingsmill) took the chair at 3 p.m., and read prayers.

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PAPERS

The following papers were presented : -

Export Guarantee Act -Return showing assistance granted, to 31st March, 1932.

Taxation Acts-Fourteenth Report of the Commissioner, years 1927-28, 1928-29, 1929-30, and1 930-31.

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QUESTION

DARWIN UNEMPLOYED

Senator E B JOHNSTON:
WESTERN AUSTRALIA

asked the

Minister representing the Ministerfor the Interior, upon notice -

  1. How many unemployed persons have been given free passes by sea from the

Northern Territory to each of the Australian. States during each of the post three years, and this year?

  1. Is it a fact that over 100 unemployed have lately been given free sea passes from Port Darwin to various ports in Western Australia, and that the Government of Western Australia has refused to provide sustenance for these persons?
  2. If so, is it the intention of the Federal Government to provide the necessary sustenance for these persons?
  3. Is it the intention of the Federal Government to continue the practice of giving free passes to the unemployed in the Northern Territory from Darwin to the various States?
  4. Has the. Government of Western Australia objected to such action on the grounds that it transfers a federal responsibility to maintain these unemployed citizens on to the State?
Senator Sir GEORGE PEARCE:

– The Minister for the Interior has supplied the following answers to the honorable senator’s questions: -

  1. The information is being obtained, and will be communicated to the honorable senator as soon as possible. 2. (a) The number of unemployed given free passages to ports in Western Australia was35. Of these, 24 were former residents of Western Australia with less than twelve months’ residence in the Territory, and the others stated that they had been offered employment in that State. There are still a large number of former residents of Western Australia unemployed in the Territory. (b) The Western Australian Government stated that it could not accept responsibility for the sustenance of these persons until they were qualified for enrolment in that State.
  2. It is not the intention of the Commonwealth Government to provide sustenance for these persons. (See reply to No. 2.)
  3. Free passages are only provided by the Government to persons who arrive in the Territory from the various States, and on finding that no employment is available express a desire to return to the State from which they proceeded to the Territory.
  4. The Government of Western Australia did not raise an objection specifically on the grounds stated. (Sec answer to No. 2 (6).) Early this year, it was ascertained that the amount provided on the Estimates of the Northern Territory for the relief of unemployment was insufficient to meet the expenditure. The number of unemployed was being increased rapidly by the arrival in Darwin of men from the various States, and particularly from Western Australia. A considerable number of men landed in Darwin as stowaways by the Western Australian State vessel Koolinda. As the majority of the unemployed were not permanent residents of the Territory, the Government decided to restrict unemployment relief to men who had been in the Territory for a period of twelve months prior to the 1st March, 1932. A register containing the names of such men was established, and all others were advisedthat relief would cease on the 1st March.A large number of the men in the latter category expresseda desire to return to the States from which they proceeded to the Territory,and their fares were paid by the Government. The Government has accepted the responsibility for the sustenance of all unemployed bonafide residents of the Territory, and of a large number of men from the States who cannot he regarded as permanent residents, but who had been in the Territory for twelve months prior to the 1st March. The influx of unemployed men from the States was on such a scale that the Government was forced to take this action. No hardship has been inflicted upon the State Governments: but, on the other hand, the Commonwealth has borne the expenditure of maintaining a large number of their unemployed, and is still supporting those who entered the Territory twelve months prior to the 1st March, 1932.

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QUESTION

PETROL DUTIES

Senator E B JOHNSTON:

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

  1. What amount was collected in duties on petrol and oils during 1932?
  2. What amounts were paid to each State, under the roads agreement, during that period?
Senator GREENE:
NEW SOUTH WALES · NAT

– The information is being obtained.

page 61

QUESTION

COLONIAL OIL REFINING COMPANY

Senator E B JOHNSTON:

asked the Minister representing the Prime Minister, upon notice -

  1. What is the annual production of petrol by the Colonial Oil Refining Company?
  2. In which States arc the products of this com pany marketed?
  3. Why are the residents of Western Australia denied the privilege of purchasing the products of this company, which is controlled by the Federal Government; and also the benefits of this company’s competition in regard to the price of petrol in that State?
Senator Sir GEORGE PEARCE:

– The Prime Ministerhas supplied the following reply to the honorable senator’s questions : -

The questionhas been referred to the managing director of Commonwealth Oil Refineries Limited, and a reply will be furnished as earlya s possible.

page 61

QUESTION

CUSTOMS LAW AMENDMENT

Senator PAYNE:
TASMANIA

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

Has consideration been given by the Government to the introduction this session of a bill to amend the Customs Act by providing that goods imported on any vessel shall upon entry for home consumption at any port after the first port of call in Australia be dutiable at all ports at the rates of duty in force on the date the vessel carrying the goods first reported at an Australian port of call?

Senator GREENE:
NEW SOUTH WALES · NAT

– The Minister for Trade and Customs has furnished the following reply to the honorable senator’s question : - it is not proposed at present to amend the act as suggested.

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QUESTION

LAND TAX REVENUE

Senator GUTHRIE:
VICTORIA

asked the Minister representing the Treasurer, upon notice -

  1. What is the estimated revenue from the Federal Land tax for the current financial year and the next financial year ?
  2. How many permanent employees and/or temporary employees are engaged in the work of valuing, assessing, and collecting the tax, and what is the total annual cost to the Commonwealth ?
Senator GREENE:
NEW SOUTH WALES · NAT

– The Treasurer has supplied the following replies to the honorable senator’s questions: -

  1. The estimated revenue for the current financial year is £2,000,000. Until the Budget for next year is framed a definite estimate of the Land Tax receipts for that year cannot be furnished. For the purposes of the recent Premiers Conference it was tentatively estimated that the receipts for next year would be £2,000,000.
  2. 225 employees are engaged full time and 175 employees are engaged part time in the work of valuing, assessing and collecting Land Tax; the estimated annual cost is £127,000.

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QUESTION

FINANCIAL AGREEMENTS ENFORCEMENT ACT

Bookmakers’ Licence Fees

Senator DOOLEY:
NEW SOUTH WALES

asked the Minister representing the Prime Minister, upon notice -

  1. Is it a fact that certain taxpayers in New South Wales are being victimized by that State on account of their paying tax on bookmakers’ licences to the Commonwealth?
  2. If so, will the Government afford these taxpayers the necessary protection and make arrangements for a supply of betting tickets?
Senator Sir GEORGE PEARCE:

– The Prime Minister has supplied the following answers to the honorable senator’s questions : -

  1. Inquiries are being made in this matter.
  2. The question of affording protection to taxpayers in New South Wales in respect of any payments made by thom to the Commonwealth is receiving consideration.

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LEAVE OF ABSENCE

Motion (by Senator Foll) agreed to -

That two months’ leave of absence be granted to Senator Elliott on account of absence overseas on urgent public business.

page 62

PUBLIC SERVICE BILL

Motion (by Senator Sir George Pearce) agreed to -

That leave be given to introduce a bill for an act to amend the Commonwealth Public Service Act 11)22-1931, and for other purposes.

Bill brought up, and read a first time.

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IMMIGRATION BILL

Motion (by Senator Sir George Pearce) agreed to -

That leave be given to introduce a bill for an act to amend the Immigration Act 1901- 1930.

Bill brought up, and read a first time.

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SPIRITS BILL

Motion (by Senator Greene) agreed to-

That leave be given to introduce a bill for an act to amend the Spirits Act 1906-1923.

Bill brought up, and read a first time.

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CUSTOMS BILL

Motion (by Senator Greene) agreed to-

That leave be given to introduce a bill for an act to amend the Customs Act 1901-1930.

Bill brought up, and read a first time.

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CRIMES BILL

Motion (by Senator McLachlan) agreed to -

That leave be given to introduce a bill for an act to amend the Crimes Act 1914-1928.

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ACTS INTERPRETATION BILL

Motion (by Senator McLachlan) agreed to -

That leave be given to introduce a bill for an act to amend the Acts Interpretation Act 1901-1930, and the Acts Interpretation Act 1904-1930.

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FINANCIAL AGREEMENTS ENFORCEMENT BILL (No. 2.)

Bill received from the House of Representatives

Standing and Sessional Orders suspended, and bill (on motion by Senator Sir George Pearce) read a first time.

Second Beading.

Senator Sir GEORGE PEARCE:
Minister for Defence · Western Australia · UAP

[3.16]. - In moving -

That the bill be now read a second time,

I remind the Senate that when the original Financial Agreements Enforcement Bill was before the chamber a short time ago, considerable opposition was offered to it by some honorable senators on the ground that in their opinion, certain of its provisions were ultra vires the Constitution. Since then all doubts in that regard have been resolved. The High Court has declared that Part II. and section 15 of the act are valid and, in addition, has refused leave to the Government of New South Wales to appeal to. the Privy Council. I may add that while the proceedings before the High Court were pending, the Government did not attempt to enforce the provisions of the law.

It will be of interest to honorable senators if I outline the steps that were taken by the Commonwealth to enforce payment of interest obligations by the Government of New South Wales. On the 15th March the Auditor-General furnished to the Government a certificate showing the amount of interest payments in default by New South Wales to be £1,172,427. After allowing as a set-off amounts due to New South Wales, the net amount of default was £924,082. On the 7th April, a proclamation was issued requiring State income taxation payments, but not including unemployment relief taxation to be paid to the Commonwealth Treasurer, and on the same day a public notice was issued explaining how the payments were to be made. On the 9th April, a second certificate was given by the AuditorGeneral which, taken in conjunction with the first certificate, showed the net default of New SouthWales to be approximately £2,000,000. The next action taken by the Commonwealth was the issue of a proclamation on the 11th April prescribing that certain other taxes should be payable to the Commonwealth Treasurer. These included the betting tax, the race-course admission tax, totalisator tax and the entertainments tax. Action was also taken, under section 15 of the act, requiring the banks to furnish information of all moneys standing to the credit of the State of New South Wales, to pay all such moneys to the Commonwealth Bank, and also to pay, within a period of two months, any further moneys subsequently received on behalf of the State.

The State of New South Wales has continued to default in respect of the payment of interest, with the result that the amount unpaid has now reached £2,225,200. The result of the so-called Lang plan is that not only has New South Wales defaulted in respect of the State’s external indebtedness, it has also defaulted in respect of payment of interest due to the Australian holders of New South Wales bonds.

Senator GREENE:
NEW SOUTH WALES · NAT

– That is the latest edition of the Lang plan.

Senator Sir GEORGE PEARCE.Australia is faced with the alarming position that if New South Wales continues to default, the gross amount unpaid by that State in respect of both external and internal interest will be £7,200,000 by the 30th June next. If we set off against that amount the sum of £1,500,000 normally due by the Commonwealth to the State there will still remain £5,700,000 to be recovered from New South Wales. A default of such magnitude threatens the whole financial and economic structure of the country. It is, therefore, essential that the Commonwealth shall do its utmost to avert the danger which threatens the well-being of every individual in the community. Until the policy of repudiation was entered upon by the Premier of New South Wales, Australia was within measurable distance of financial equilibrium, which would have brought about a decrease in unemployment. Under the Premiers plan the Commonwealth and the States were well on the road towards national solvency.

The Commonwealth Government is determined to proceed along the line of national restoration, and consequently it has introduced this measure in order to render more effective the Financial Agreements Enforcement Act, and to protect those citizens of New South Wales who obey the law - a law declared by the High Court to be valid - from any retaliatory action which might be initiated against them on that ground. Clause 3 provides that additional protection by prohibiting the imposition of penalties upon taxpayers who make to the Commonwealth payments of moneys which, but for the Commonwealth law, would be payable to the State.

Clause 4 protects those citizens of a State who. pay to the Commonwealth money in respect of licences or registration fees, by providing that the State officer who, in the ordinary course of business, would issue the licence or similar document, shall, if all other requirements of the State law have been complied with, issue such licence or document on the production of the Commonwealth’s receipt for the fee. Those honorable senators’ who are interested in the question of the competency of the Commonwealth to extend that protection are invited to read the judgments of the justices of the High Court, who declared in favour of the Commonwealth.

In some cases it may be desirable that State officers or employees shall collect moneys which, under the principal act, are payable to the Treasurer or an authorized person, and to deal with them as directed by the Treasurer. Clause 5 makes provision accordingly.

Clause 6 inserts a new section 13a, which provides that after any resolution under the principal act has been passed by both Houses of the Parliament, each House may, at any time, and from time to time, pass a further resolution specifying any additional class or classes of State revenue to which sections 7 to 13 of the act shall apply. When such further resolution has been passed the classes of revenue specified therein will be deemed to have been specified in the earlier resolution. As the act at present stands, it is doubtful whether Parliament can, by resolution, specify any new class of revenue without the issue of a further certificate by the Auditor-General under section 5 of the principal act.

The object of clause 7 is twofold : first, it alters the form of notice to be given to the banks under section 15 of the principal act; and, secondly, it empowers the Treasurer to release moneys which have been paid to him under that section, but which are, in substance, trust moneys, not. moneys the property of the State.

I desire to add to that outline and history of the bill a few general remarks on the present situation. The Commonwealth Constitution is as binding on Ministers and officers of the States as it is on Ministers and officers of the Commonwealth. When the principal act was under discussion, it was frequently stated by honorable senators that the agreement had been drawn up in the belief that it was an agreement which would be dealt with by honest men. I go further, and say that it was drawn up in the belief that it would be dealt with by law-abiding men. In view of the oath taken by New South Wales Ministers to uphold the law - that law including the Commonwealth Constitution and arl the laws made under it - one would have thought that their rebellion would come to an end immediately the High Court decision was given. But that -was not the case. Mr. Lang is now defying a law of the Commonwealth, which he has sworn to uphold. I repeat that that law is the law of the States as well as of the Commonwealth. One wonders how long a Minister who, contrary to his oath, refuses to obey the law which he has sworn to observe, is to be permitted to do so.

What has Mr. Lang accomplished through his infamous so-called “plan”? He has smashed the Government Savings Bank of New South Wales; he has produced the greatest amount of unemployment in the history of New South Wales, and the greatest in any of the States of the Commonwealth. He has lowered the actual earnings of wage-earners in New South Wales, the richest State in the Commonwealth, below those of the workers in any other State. The following table shows the reduction in nominal and real wages in the several States from 1928 to September, “J 931:-

Later information is not yet available from official statistics. The real’ test of the standard of living is not the nominal wage, but the actual earnings of the wageearners as a whole. Judged by that standard, the richest State in the Commonwealth - the State most blessed by Providence^ - is at the bottom of the scale.

Senator Sir William Glasgow:

– Had not large numbers of men left New South Wales the average earnings of the wageearners of that State would have been lower.

Senator Sir GEORGE PEARCE:

– That is so. Mr. Lang has not only impoverished the people of his State; he has made parliamentary government a by-word and a reproach. He has created class discord and class hatred of the most bitter character in the State of which he is the political head. That he has also, by his unsound and uneconomic actions, driven capital out of New South Wales into the other States is shown by the following figures which I have taken from the commercial columns of the Sydney Morning Herald of to-day’s date : -

page 64

QUESTION

STATE BANKING AGGREGATES FOR THE QUARTER ENDED MARCH

The average of the aggregate deposits in the trading banks in their New South Wales business decreased compared with the March quarter of 1931 by £6,091,931. Current accounts showed a small increase - £759,234 - but fixed deposits diminished by the large sum of £7,451,105.

The figure, I quoted, of £6,691,931 is after making allowance for the small increase in current deposits. Take this further comparison, remembering again that New South Wales is the richest State in the Commonwealth -

The amount of this last mentioned movement compares with an increase of £ll>,09!),0(57 in the fixed deposits in the banks in their Victorian business, and an increase of £10,f>30,78D in the fixed deposits of the banks in all the Stales taken together.

That is what Mr. Lang and the Lang plan have done and ai:e doing in New South Wales. Mr. Lang has injured the credit of Australia in “he eyes of the outside world, and has destroyed confidence in our bonds and stocks. He has made the financial rehabilitation of the Commonwealth and of the other States difficult, if not almost impossible. He has encouraged or passively permitted the active propagation of communism’ in New South Wales. He is the greatest obstacle to the financial and economic recovery of the Common wealth. While he remains in office unemployment will remain and must increase. Under the guise of being a friend of the workers he has inflicted, and is still inflicting, upon the workers of Australia the perpetuation and accentuation of unemployment with all its attendant suffering on the part of the people, and particularly the wage-earners. He has commenced, with the aid of his Keel associates* in New South Wales, a campaign to promulgate the idea that “ Lang is right “. The fact that 31 men and women out of every 100 in New South Wales are unemployed demonstrates by its numbers and their suffering that Lang is wrong. The scandals charged in respect; to tin hares and other matters shout that Lang is wrong. The fall in the price of New South Wales stocks denotes that people with money to invest believe that Lang is wrong. The High Court decision established that Lang was wrong, and Lyons was right.

Senator BARNES:
Victoria

– As the principle embodied in this measure was fully discussed when the act which it proposes Vo amend was under consideration, there is no necessity to labour the subject on this occasion. The present tangle ia Commonwealth and State finances appears to me to have occurred largely in consequence of the unwise methods adopted by the Commonwealth Government in endeavouring to enforce its will upon the people of New South Wales. If the whole matter had been dealt with in another way a good deal of the bad feeling which has been engendered could have been avoided, and probably by this time the trouble would have been smoothed out and settled to the satisfaction of both parties. A majority of the people of Australia feel that they have no particular interest in the wrangling which has occurred between the governments concerned, or in the case which recently came before the High Court. Our object -should- be to settle the difficulty promptly so that the people of Australia will know exactly where they stand. I do not know whether the Lang Government is deliberately endeavouring to harass the federal authorities; but it would appear that there were some grounds for the belief held by those who opposed the Commonwealth’s proposals that the Commonwealth was exceeding its constitutional authority. The decision of the High Court on the validity of the Financial Agreements Enforcement Act was not a unanimous one. In any event it is. to be hoped that this embarrassment of the Commonwealth, as well as of the State concerned, and the people generally will not continue.

This measure gives the Commonwealth authority to collect certain State revenues after the issue of a proclamation, and it is proposed to utilize the services of State officers for that purpose. This, I fear, will have the effect of throwing an additional spanner into the wheels of our financial machinery. If a State officer obeys the instructions of the Federal Treasurer, the State Government may dispense with his services. The present position is most unsatisfactory, and the sooner finality is reached the better it will bc for every one.

Senator Guthrie:

– Does the honorable senator wish Lang to win?

Senator BARNES:

– I am anxious to’ see a satisfactory settlement reached. While all this wrangling continues unemployment is increasing and deserving people are going without the necessaries of life. I believe that the necessary interest payments could have been met by the imposition of additional taxation without unnecessarily embarrassing the people. I understood the Leader of the Government (Senator Pearce) to say that £2,500,000 is due to the Commonwealth by the New South Wales Government, and as that amount has been provided by the Commonwealth authorities, itsown revenue, which could have been utilized for other purposes, has been depleted to that extent. According to reports in the Press the Government of New South Wales appears to be determined to fight this issue to the last ditch, and I hope that whatever is to be done will be done expeditiously so that financial and economic stability may be reached, and further wrangling avoided. There are affairs’ of very much greater importance awaiting the attention of this Government. Overshadowing all others is the necessity for dealing with the problem of unemployment so that the misery and suffering from which a large section of our people are suffering may be alleviated without delay. Those who are now tramping the countryside should be given an opportunity to return to work so that theymay earn sufficient to feed and clothe themselves and discharge their responsibilities to their dependants.

Question resolved in the affirmative.

Bill read a second time.

In committee:

Clauses 1 to 6 agreed to.

Clause7 (Moneys held by banks on behalf of State).

Senator FOLL:
Queensland

.- This clause deals with trust moneys. I should like some information from the Acting Attorney-General (Senator McLachlan) regarding the manner in which any trust moneys taken over by the Commonwealth Government under this act will be dealt with. Recently, the press of New South Wales published statements by eminent legal authorities in that State to the effect that trust moneys are not being handled by the Premier of New South Wales in the way prescribed by the Trustee Act of the State. Very definite charges of mishandling of trust funds have been made. We should have an assurance from this Government, if that be necessary, that when such trust moneys come into its possession the provisions of the New South Wales Trustee Act will be observed in every detail, and that those moneys will riot be placed in a general fund to be used as a set-off against the debt of New . South Wales to the Commonwealth, but that they will be treated purely as trust moneys. I should like the Minister to say whether it is a fact that the Premier of New South Wales has mishandled trust moneys that have come into his possession through various channels, and what action the Commonwealth will take should such moneys be received by it under the provisions of this act.

Senator McLACHLAN:
Vice-President of the Executive Council · South Australia · UAP

– The proposed new sub-section 5a is in keeping with the spirit of the principal act. That is, that moneys which really do not belong to the State of New South Wales should be freely accessible to those to whom they should rightly be paid. The honorable senator has raised a question which presents some difficulty. It is quite true that it appeared from certain documents that came before the Commonwealth Crown Law officers that there was to the credit of the Colonial Treasurer, in some form or other, in the various banks, the sum. of £483,000 which might be regarded as trust money - funds of all classes which could not in any sense of the term be regarded as the property of the State. The legal title in them was vested in the first instance in the Public Trustee. They were moneys that were held by him for distribution to widows, orphans, and other classes of beneficiaries whose affairs were being administered by him. All that remained in the bank to the credit of the State of New SouthWales, on every account, was the sum of £60,000. I leave honorable senators to deduce from that the position in which the State has been placed, particularly in relation to trust funds, which should be regarded as sacred, and upon which no government or body should lay violent hands. The position was such that we felt it incumbent upon us to introduce this legislation, so that when these funds came into our hands - depleted, peculated though they had been by some person, we know not whom - we should not be embarrassed, but could prescribe a method that would enable the proper officer to protect those who had been de frauded, which result undoubtedly would follow unless the deficiency was made good. Honorable senators will see the difficulty with which we are faced. Already there is a deficit of £423,000 in these trust funds. We do not know to which particular fund the £60,000 belongs. At all events, it represents just a little under one-seventh of the amount that should have appeared to the credit of the fund.

Senator Foll:

– Who actually was the controller of the trust funds?

Senator McLACHLAN:

– As I understand the position, under the Public Trustee Act of New South Wales, the Colonial Treasurer requires that all trust moneys in the hands of the Public Trustee shall be paid into a bank to the credit of the Colonial Treasurer. It is done with the object of saving interest ou one fund as against another. The Colonial Treasurer, however, is not justified in laying his hands on any moneys held in a bank ob behalf of the Public Trustee, who is statutory trustee for the widows and other beneficiaries under bequests and administrations which for the time being he is administering. The same applies to the suitor funds referred to by Senator Foll. Under this bill the Commonwealth Treasurer may, if he thinks fit, deal in a prescribed manner with any funds which are in substance the property of the State. That seems to me a more satisfactory course of action than to visualize! anything which is likely te subject the Commonwealth to an action for breach of trust. The Commonwealth Treasurer might prescribe that these moneys should be paid into the hands of the Registrar of the High Court or the Master in Equity, in order that a proper distribution of them might be made amongst those legally and morally entitled to them; or he might, if they be public trustee moneys, prescribe that they be restored ‘o the Public Trustee; so that no injustice would be done to any individual.

Clause agreed to.

Title agreed to.

Bill reported without amendment; report adopted.

Rill read a third time.

page 67

ADJOURNMENT

Bankruptcy Law - Death of Sir Adrian Knox, Mr. F. C. Cox and Mb. A. BUTCHER - Naval Cadets - Customs Law Amendment.

Senator Sir GEORGE PEARCE:
Minister for Defence · Western Australia · UAP

[3.54]. - I move -

That the Senate do now adjourn.

Further requests for amendments to the bankruptcy law having been forwarded to the Government we have no desire to press forward with the bill until ample opportunity has been afforded to us to consider the proposed amendments.

I am sure that I am expressing the feeling of all honorable senators when 1 say that we regret the passing of Sir Adrian Knox, a gentleman who has had a very distinguished career and who for many years presided over the High Court of Australia.

I should like also, on behalf of honorable senators on the ministerial side, to tender my sympathy to Senator Cox in the death of his aged father, Mr. C. F. Cox, who was nearly 100 years old at his death and one of the first generation of Australians. He was a man of fine character and was one who helped to develop the State of New South Wales, in which he lived.

Another death, which I regret, is that of one who has been a.n officer of the Senate for many years. I refer to the late Mr. Alfred Butcher, the chief attendant in the chamber. He was most assiduous in the performance of his duties, and most courteous in his dealings with honorable senators. When I read of his demise I took occasion to extend to his relatives our sympathy and regret at his passing. .

Senator BARNES:
Victoria

.- I. associate myself with the remarks of the right honorable the Leader of the Senate (Senator Pearce) concerning the death of that eminent gentleman, Sir Adrian Knox, whose great talent was recognized by the whole of Australia and whose name we were all proud to honour. I am sure that I speak for this side of the chamber when I say that we extend our sympathy to Senator Cox in his recent bereavement. As for Mr. Butcher, he was well known to all of us and was tremendously liked. His- services were at the disposal of every one, he was most courteous to all, and he was almost indispensable to new senators.

Senator FOLL (Queensland) [3.58’J.- I congratulate the Minister for Defence on the fact that an examination is to be held for cadetships in the Royal Australian Navy. Apparently an opportunity is to be now afforded to Australian lads to ‘become officers in our navy. Unfortunately, during the regime of the previous Government many lads who had gained admission to the navy by examination, and had gone overseas to complete their training, instead of receiving the appointments in the Royal Australian Navy, which they had naturally anticipated would be open to them, were given more or less junior positions in the Public Service. One was’ made office boy at the Observatory at Canberra. They were thus deprived of the opportunity of the naval career which they had in view. I think it should be made abundantly clear to those who succeed in passing the forthcoming examination that when they complete their cadetship and their training, they will receive appointments in our navy. It is useless to expect lads to give up five or six of the best years of their lives to intense training to fit them for a naval career and then employ them in other occupations for which their training has not fitted them. Great rejoicing has been occasioned among a large section of our public school boys by the advertisement which the Government has inserted in the newspapers calling for applications to fill vacanies in the naval training college. Many youngsters are swotting hard to pass the necessary examination. I know that the Minister, who has had an extended experience in the administration of defence matters, is sympathetically disposed towards these boys, and I trust that he will make it clear to them that, if they are capable of passing the necessary examinations, there will be a naval career for them.

Senator PAYNE:
Tasmania

.- This afternoon I asked the Minister representing the Minister for Trade and Customs the following question : -

Has consideration been given by the Government to the introduction this session of a bill to amend the Customs Act by providing that goods imported on any vessel shall upon entry for home consumption at any port alter the first port of call in Australia be dutiable at all ports at the rates of duty in force on the date the vessel carrying the goods first reported at an Australian port of call!

His reply was most disappointing. He said -

It is not proposed at present to amend the act as suggested.

Last year there was a bill on the noticepaper to amend the Customs Act, and it was my intention to move an amendment to remove the disability which merchants, particularly in Tasmania, have suffered for a considerable time because of the incidence of changes of duty on goods imported. So that no State may reap an advantage over another, the Constitution provides that there shall be no discrimination between the States in any law; but at present the Customs Act so operates that merchants in some States have an undue advantage over merchants in other States. Different rates of duty apply to the same goods in the same ship’s bottom. Last year, and the year before, in quite a number of instances after vessels had arrived at Sydney or Melbourne, and discharged part of their cargo, rates of duty were altered before they reached Hobart and Launceston and discharged the balance of their cargo. As a consequence, the merchants of Tasmania were penalized to the extent of the increase of the duties. To my mind that is quite contrary to the spirit of the Constitution. But, even if that be not so, it is, I think, in all fairness, high time the act is amended to provide for uniform rates of duty on the whole of *a ship’s cargo from the beginning of its discharge of cargo at the first Australian port of call until its final discharge at any Australian port.

Senator E B Johnston:

– If the tariff were reduced, would not the Tasmanian merchants derive an advantage?

Senator PAYNE:

– Even if Tasmania did reap an advantage in such circumstances, it would not be fair to the other States. Provision could easily be made in the Customs Act so that every importer of cargo in any particular vessel would pay the same rate of duty on that cargo, It is certainly unfair to handicap one State compared with another, and I trust that the Government will take into further consideration the question I sub- milted to-day, with a view to having an amendment made this session in the direction I have indicated.

Senator Sir GEORGE PEARCE (Western Australia - Minister for Defence) [4.5] . - I shall see that the representations made by Senator Payne with regard to the Customs Act are brought under the notice of the Minister for Trade and Customs (Mr. Gullett) for his further consideration. With reference to the matter raised by Senator Foll, it would be foolish of me to say that I could give a guarantee thatall cadets who pass through the Naval College would be certain of employment for the rest of their careers. Obviously, I could not do that because we do not know what may be the outcome of the Disarmament Conference. Navies may become a thing of the past or, at all events, their strength may be seriously reduced. The present outlook suggests thatwe shall maintain our naval forces at their present strength - they seem to be well down to bedrock - so we should be able to find employment for most of the cadets who pass through the college. But I do not admit that any injustice would he done the cadets if we were not able to give them continuous employment in the navy. Let us consider what is done. Boys are entered for the Naval College at thirteen and fourteen years of age, whereas lads entering a military college may be nineteen years old, almost adults in fact, so the position of lads in the respective colleges is not comparable. Boys entering the Naval College get, absolutely free of charge, the best secondary college training that canbe given in any school in Australia. Their training does not, as Senator Foll suggests, fit them only for the naval service. So diversified is the character of their instruction, that students leaving the Naval College could take up almost any occupation. Their work is not confined to gunnery or torpedo practice or navigation. I invite honorable senators to visit the Naval College at Western Port and see the lads at work. For the first half of each day they are occupied with the ordinary school curriculum, with the exception that the training which they get is equal to that given in the best schools in Australia, and more attention is given to those subjects calculated to fit them for the occupation of engineering. The second half of each day is taken up with the technical side of their instruction. They are required to spend their time in the workshops, learning to handle all manner of engineering tools and lathes, and are also taught navigation, signalling, wireless telegraphy, &c. In the latter part of their term at the college, they are given some seafaring training, so that, when they leave, they are equipped for almost any occupation, free of all expense to their parents. For this reason 1 contend that, even if the Commonwealth is not in a position to employ a boy when he has finished his naval training, no injustice is done either to him or to his parents. But, as I have indicated, we hope to be able to provide for them. At the same time,I am sure that every honorable senator will agree with me when I say that it would be much better if all naval forces could be dispensed with. I have no doubt that the parents of the boys themselves would welcome that state of affairs, but the probability is that naval defence forces will be maintained, and if so, the boys entering our Naval College will have a reasonable prospect of securing employment at the end of their period of training.

Question resolved in the affirmative.

Senate adjourned at 4.9 p.m.

Cite as: Australia, Senate, Debates, 28 April 1932, viewed 22 October 2017, <http://historichansard.net/senate/1932/19320428_senate_13_134/>.