Senate
7 December 1938

15th Parliament · 1st Session



The President (Senator the Hon. J. B. Hayes) took the chair at 3 p.m., and read prayers.

page 2777

DEFENCE PLANS

Additional Estimates of Expenditure

Senator FOLL:
Minister for Health and Repatriation · Queensland · UAP

laid on the table the following paper -

Additional Estimates of Expenditure for the year ending 30th June, 1939. and - by leave - read a statement which was made in the House of Representatives on the 6th December by the Minister for Defence (Mr. Street), on the second reading of the Loan Bill (No. 2) 1938, regarding the expanded defence programme (vide pages 2754-68).

page 2777

IMPORTATION OF SPECIAL ALLOY STEELS

Senator McLEAY:
Vice-President of the Executive Council · SOUTH AUSTRALIA · UAP

by leave - On Friday last, Senator Ashley drew attention to a press report concerning the registration of a company for the purpose of trading in Australia and New Zealand in imported special alloy steels. The honorable senator appeared apprehensive that an activity of this nature might be harmful to Australian secondary industry. As I promised, I brought the honorable senator’s remarks to the notice of the Minister for Trade arid Customs, who informs me that the local demand for special alloy steels covers a very wide range. The characteristics of the different kinds and grades of alloy steels vary considerably, whilst a large number of sizes, sections and shapes is required. Australian manufacturers are producing at the present time some grades of alloy steel, but are not in a position to supply the full range. This phase of the steel industry is, however, being developed, and one important manufacturer now has arrangements in hand for the production of tool steel. The manufacture of special alloy steelsis protected by the tariff, although by-law admission at concessional rates of duty is granted in respect of those kinds of alloy steels that are not now commercially produced in Australia. When Australian manufacturers are producing these kinds of steel, a request for the withdrawal of existing by-law concessions will receive every consideration. In my opinion, every honorable senator should have reason to be satisfied with the progress of the steel industry in Australia. Immediately the production of any kind of steel on a commercial basis is practicable, Australian manufacturers extend their activities to embrace that particular section of the trade. Honorable senators may also remove from their minds any doubt which they may have regarding the continued development of steel manufacture in Australia on a sound basis. The tariff policy of the Government is such that’ the interests of Australian secondary industry will be adequately protected.

page 2778

QUESTION

WHEAT INDUSTRY

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

Has the Leader of the Senate seen a paragraph which has appeared in several daily newspapers during the last few days stating that the British Government has purchased from the United States of America 540,000 tons of wheat, valued at £2,750,000? How does the Minister reconcile that purchase with the statement he made, when speaking on the Anglo-American trade agreement, that the loss of the preference of 2s. a quarter in the market of the United Kingdom will not affect the Australian wheat industry?

Senator McLEAY:
UAP

– I shall look into the matter, and give the honorable senator a considered reply later.

Senator KEANE:
VICTORIA

– Will the Minister representing the Minister for Commerce supply me with the names of members in both Houses of the Commonwealth Parliament who have been, or who will be, financially interested in the Wheat Industry Assistance Act 1938?

Senator ALLAN MacDONALD:
Minister without portfolio, assisting the Treasurer · WESTERN AUSTRALIA · UAP

-I shall see if I can obtain from the Minister for Commerce an answer to the honorable senator’s question.

page 2778

QUESTION

MR. S. M. BRUCE

Travels

Senator McLEAY:
UAP

– On the 1st December, Senator Keane asked me the following questions, upon notice: -

  1. Bow many overseas visitshas Mr. Bruce made since his last return to political affairs in1932?
  2. What was the cost to the Commonwealth of each of those travellings?
  3. What is the estimated cost of his contemplated visit to Australia?

I am now in a position to furnish the following reply: -

  1. Mr. Bruce left Australia in June, 1932, to attend the Imperial Economic Conference at Ottawa, at the conclusion of which he proceeded to London as Minister representing the Commonwealth. He was appointed High Commissioner on the 7th October, 1933, and visited Australia in 1934, leaving London in February of that year.
  2. The proportion of expenditure allocated to Mr. Brucein connexion with the Ottawa Conference Delegation was £955. The estimated cost of the visit to Australia in 1934, including the expenses of the private secretary, was approximately £1,400.
  3. The itinerary of Mr. Bruce’s forthcoming visit to Australia has not been finalised, but it is estimated that the cost will be approximately £ 1,000.

page 2778

QUESTION

DEFENCE DEPARTMENT

Skilled and Unskilled Workers in Victoria.

Senator CAMERON:
Postmaster-General · VICTORIA · CP

asked the Minister representing the Minister for Defence, upon notice -

  1. Apart from staff appointments and enlistments, how many workers who are skilled and how many who arc unskilled are now employed by the Defence Department in Victoria?
  2. What increase, if any,has taken place in the numbers so employed as from the 30th June of this year?
Senator FOLL:
UAP

– The Minister for Defence has supplied the following answers : -

  1. At present the following workers are employed in the Defence Department in Victoria: - Skilled (e.g. tradesmen), 590; unskilled and semi-skilled (including process workers, machine operators and female machinists, &c.),2,172.
  2. The increase which has taken place since the 30th June, 1938, is- Skilled, 99; unskilled and semi-skilled,248.

page 2779

QUESTION

INVALID AND OLD-AGE PENSIONS

Cost of Living

Senator CAMERON:
CP

asked the Minister representing the Prime Minister, upon notice -

In view of the reported increases in the cost of bread and in the coat of living generally, is the Government prepared to direct that old -ageand invalid pensions be increased in accordance with the increased cost of living figures (if any) ?

Senator McLEAY:
UAP

– The Prime Minister has supplied the following answer :-

The Government regrets that it is unable to see its way to recommend any variation of the rates of invalid and old-age pensions as provided in existing legislation.

page 2779

QUESTION

RE-ARMAMENT

Senator CAMERON:
CP

asked the Minister representing the Minister for Defence, upon notice -

  1. Has the Minister’s attention been directed to an article entitled”Democracy and Rearmament,” appearing in the Statesman and Nation, published in Loudon on the 29th October last, in which it is affirmed that “The truth is that British inefficiency in war preparationshas been due not to the democratic features of the Constitution, but to . . . the oligarchs who control our industries . They demand not merely a high profit on the goods which they are asked to make for the Government, but, in addition, compensation for distribution - for the upsetting of their ordinary sidling routine, and possible loss of future markets.”?
  2. If so, what arrangements, if any, has the Government made to deal with the position in the event of a similar state of affairs arising here in Australia?
Senator FOLL:
QUEENSLAND · NAT; UAP from 1931

– The Minister for Defencehas supplied the following answers : -

  1. No, butI will undertake to read the article in its full context. 2.The state of affairs envisaged in the article will not arise in Australia in connexion with the manufacture of armament stores in annexes which will he attached to certain State government establishments and private firms. Practically all of the plant and equipment required for the manufacture of armament stores will bo provided and installed at the Government’s expense, and will, at all times, remain its property and without its consent cannot be used on any work other than Government orders. The annexes, in effect, willbe governmental workshops attached tothe selected establishments for purposes of management and operation. Profits on armament stores manufactured in the annexes will be controlled by checking actual manufacturing and overhead costs. A special section has already been set up within the department for this purpose, and, as indicated in my statement to Parliament yesterday, the Governmenthas decided to invite the accountancy societies to nominate a panel to advise on the scheme of costing and profit control for the production of munitions by private industry in an emergency.

page 2779

QUESTION

POSTAL DEPARTMENT

Darwin Employees

Senator BROWN:
QUEENSLAND

asked the Minister representing the Postmaster-General, upon notice -

  1. How many postal officials dealing with incoming and outgoing mail were employed before the institution of the aerial mail service at Darwin ?
  2. How many were employed on the 1st September last?
  3. How many are employed now?
  4. Is everything possible being done to cope with the huge Christmas mail at Darwin?
Senator McLEAY:
UAP

– The PostmasterGeneral has supplied the following answers : -

  1. Five.
  2. Eight.
  3. Eight.
  4. Yes; special arrangements have been madewhich are working quite satisfactorily.

page 2779

WHEAT INDUSTRY INSURANCE BILL 1938

Motion (by Senatorwilson) agreed to-

That leave be given to introduce a bill for an act to provide for insurance against certain contingencies in relation to the wheat industry.

Bill brought up, and read a first time.

page 2779

ASSENT TO BILLS

Assent to the following bills re ported : -

Flour Tax (Wheat Industry Assistance) Assessment Bill1938.

Flour Tax Bill 1938.

Flour Tax (Stocks) Bill1938.

Flour Tax (Imports and Exports) Bill 1938.

Wheat Tax Bill 1938.

Wheat Industry Assistance Bill 1938.

page 2779

QUESTION

CUSTOMSTARIFF (No. 2) 1938

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

Motion (by SenatorFoll) proposed -

That the bill be now read a first time.

Senator E B JOHNSTON:
Western Australia

.- I take this opportunity to bring under the notice ofthe

Government and of the Senate the serious position of the town of Broome and of the pearling industry in the north of Australia. The industry is suffering severely, not only from Japanese competition in the actual recovery of pearl shell, but also owing to the fact that that competition is reducing the price of the product upon which the pearling industry and the township of Broome depend. This matter has been brought before the Government emphatically and repeatedly during the last few mouths. I wish to refer particularly to the deputation representing the pearling committee which waited upon the Minister for the Interior (Mr. McEwen) at Broome at the end of August last. The deputation was introduced by the honorable member for Kalgoorlie (Mr. Green) and was supported by me. Mr. Green and I travelled to Broome specially to take part in that and other representations which were made to the Government on the first visit of a Commonwealth Minister to the north-west coast. The Minister visited Broome on his return journey from the Northern Territory in order to go fully into the matter of assisting the pearling industry. I applaud his action in deciding to visit Broome and that of the Government in approving of his visit, which was highly appreciated by the residents of Broome, which for over 40 years lias been the head-quarters of the northwest pearling industry, upon “which it depends for its existence. Moreover, the Western Australian Government permitted the steamer Koolama to remain at Broome for a longer .period than is usual in order to enable the Minister to hear the views of those engaged in the industry and to investigate their problems on the spot. Mr. Carrodus, the Secretary of the Department of the Interior, also attended the deputation. The case -for assistance to the white pearlers at Broome was outlined by several speakers, including members of the Broome Pearlers Committee, who submitted a carefully prepared case for assistance. A detailed written statement of their claims was also handed to the Minister. A feature of the deputation was a speech made by the honorable member for Hume (Mr. Collins), who was invited to make a few remarks as a visiting supporter of the Government. In very eloquent terms he supported the requests of the deputation, and said that the case made out by the pioneer pearlers of the north deserved full support from this Parliament and the people of Australia. The Minister’s reply to the deputation was certainly most sympathetic. He promised to submit their case to the Cabinet as soon as he returned to Canberra, and to convey Cabinet’s decision to the pearlers as soon as possible. Nearly three months has elapsed since the Minister was in Broome, and the only action taken so far by this Government has been to join with the Government of Western Australia in guaranteeing a small advance against the shell raised. This assistance is not nearly sufficient to save the industry from the disaster which now threatens it. Replying to the deputation the Minister, on his own initiative, said that as the question of Australia’s national prestige was undoubtedly involved in the maintenance of the pearling industry, we could not afford to see Australian pearlers driven out of business by Asiatic competition. He assured the deputation that this aspect would be borne in mind by the Government. I have yet to learn what assistance the Government proposes to provide. I understand that it has joined with the Government of Western Australia in guaranteeing an advance of £87 a ton against pearl shell on something over 150 tons of shell, the joint liability of the two governments in respect of Broome being about £14,000. Probably a smaller amount would be involved in respect of Darwin. The pearlers ask that a bonus, or subsidy, be granted on the production of pearl shell at the rate of £30 a ton while the price of shell is less than £135 a ton. I am. sorry to say that the present price is considerably less than that figure. I have been collaborating in this matter with the honorable member for Kalgoorlie (Mr. Green) who, I understand, intends to raise the subject in the House of Representatives at his first opportunity. During the last few days we have received several communications from representatives of the industry at Broome. The following telegram was sent to me by the chairman of the

Broome Roads Board, whose position is equivalent to that of mayor of a town: -

Business people and citizens are becoming increasingly alarmed at development of present position here owing delay response by Federal Government to pearlers’ requests for financial assistance. To size the situation I have carefully perused pearlers’ file on their case to Federal Government, and can assure you that requests are for the minimum amount only on which it is possible to carry on the industry, on which the whole town exists. At a meeting of the Roads Board to-day the situation was fully discussed, and much anxiety was expressed. We are definitely certain that if assistance asked for is not forthcoming immediately the town will be in a state of chaos, and trouble with unpaid seamen is feared. Please do your utmost to expedite and advise. . . Chairman Roads Board.

Both Mr. Green and I have been in close touch with the Commonwealth Government, and we recently waited on the Minister with a view to getting this matter finalized as soon as possible. [Quorum formed.] From the pearlers’ committee at Broome we received the two following telegrams dated the 30th November : -

Anxiously awaiting decision Federal Cabinet regards produce advance and subsidy. Situation most serious. Two-thirds Broome fleet already in port owing unfavorable working conditions. Expect balance fleet arrive Broome next week, when lay-up will start, and as most pearlers definitely unable pay off, serious complications with men will ensue unless Government grants our request and immediately makes available £16,000 produce advance and £16,000 subsidy. Can you give us any information ?

Desire emphasize fact that all Broome government servants, shopkeepers, workers, etc., etc., in fact wholewhite population Broome dependent on pearling industry and for your Minister’s information the white population of Broome is 405. each twelve, seven and five boats: two pearlFleetsowned andoperatedareonecompanyers each four boats; one pearler three boats; five pearlers each two boats; eight pearlers each one boat. Of these, only three pearlers have no family resident in Broome; companies have several families dependent. Owing extreme isolation impossible visualize plight all homes and families if forced leave district, which must happen in event no response from Government to our appeal.

The information given in these three telegrams is reliable and can be. accepted by the Government. Honorable senators will realize that the white population of 465 dependent on this industry at Broome will be faced with disaster unless immediate and substantial help, to the amount of at least an additional £16,000, be granted by this Government.

In regard to the efficiency of the industry, I point out that since criticism was levelled against it by the Tariff Board in 1935, the majority of the boats and equipment at Broome have been replaced. On the 16th August, the chairman of the Broome Pearlers Committee wrote to the Assistant Minister for Commerce (Mr. Thompson) as follows : -

During 1935 the Tariff Board sat at Broome to investigate the condition of the pearling industry. At that time it was known Japanese sampans were operating off the Darwin coasts and, from information in their possession, the board expressed the opinion that the Japanese vessels were of a superior type and much better equipped than those of Broome. During 1936 and 1937 all profits and the generous help forthcoming from both Commonwealth and State governments, to those pearlers who suffered in the 1935 cyclone, plus a considerable amount of capital, were spent and invested in rehabilitating, modernizing existing bottoms and installing the latest types of auxiliary plants. To-day, 99 per cent of the unite operating from Broome are amongst the most up-to-date in the world.

Thus the Government is being asked to assist, not only a white population to maintain itself in the tropics, but also an industry which has placed itself on an efficient basis. Since the deputation waited on the Minister at Broome members from Western Australia have raised this matter on several occasions in this Parliament, but no definite reply has yet been given to their representations. I, myself, have raised the subject on two occasions in this chamber. I now urge the Government to do something for the industry before the session ends. A couple of weeks ago the honorable member for Kalgoorlie and I discussed the matter at length with the Assistant Minister for Commerce who is now handling it. We were relieved to know that he was in close collaboration with the Minister who is undoubtedly sympathetic to the requests made by the deputation which waited on him at Broome. The industry, there fore, confidently looks to both of these Ministers to support their requests. I repeat that the position at Broome is desperate. The Minister quite rightly agreed that Australia’s national prestige was involved in the maintenance of the industry. Certain phases of the matter involving international competition were placed before him, but I do not propose to refer to them at the moment. I have no doubt that, they will be carefully considered by the Government. I point out that the pearlers at Broome are obliged to bear a considerable burden as the result of national policy in respect of the tariff and in other directions, whereby their costs of production have been very substantially increased. There can be no doubt that the industry is of very great value to the Commonwealth. The pearlers who have pioneered it in Northern Australia for the last 40 years are a valuable factor in the development of that part of this country, whilst from the aspect of defence we cannot afford to lose so important an industry in our vulnerable north. I again urge the Government to give an immediate and favorable reply to the requests made on behalf of the industry.

Senator ALLAN MacDONALD:
Assistant Minister · Western Australia · UAP

– The urgency of assisting the pearling industry, was raised last week by Senator Cooper who dealt with the position at Darwin. I might add that the position at Thursday Island is also very grave. J agree with what Senator Johnston has said in regard to Broome, and I now repeat the assurance which I gave to Senator Cooper, that the whole matter of assisting the pearling industry is being carefully considered by the Government. The dangers arising from the intrusion of foreign- sampans on our pearling ground have, of course, been apparent for quite a number of years. The increase of the number of sampans and of the production of pearl shell in northern waters is causing considerable, concern to Australian pearlers, but there is no evidence available to support” Senator Cooper’s fears that Japanese pearlers are subsidized by the Japanese Government. A holding company has been formed in Japan to take over the whole of the Japanese pearling interests and to regulate the output with a view to improving market conditions.

As to the present critical state of the industry at Broome, I point out that advances totalling £14,000 have been made by the Commonwealth Bank in order to finance the marketing of pearl shell, and that an arrangement has been entered into between the governments of the Commonwealth and Western Australia to guarantee £12,000 of that amount An advance under similar conditions has also been made, with the cooperation of the Government of Queensland, to assist the pearling industry at Thursday Island.

As was mentioned by Senator Johnston, the Tariff Board in 1935 made certain recommendations as to the free entry under by-law of goods, mostly machinery, diving accessories and other incidentals to the pearling industry, and from time to time these goods have been admitted free of duty by the Commonwealth Government. By that means it has been possible to ease the burden on the industry in tho far north of Australia. Consideration is also being given by the Rice Marketing Board of New South Wales and the Queensland Sugar Board to a request that special price concessions be granted to those engaged in the industry. I, personally, have received a number of telegrams similar to those received by Senator Johnston. They have been submitted to Cabinet, and I give an assurance that every consideration will be given to the request for assistance to this important industry which operates in isolated parts of the continent.

Senator COLLINGS:
Queensland

.- In November, 1936, this subject was under discussion as the result of questions which I asked and some action which I took regarding grants to the pearl-shell industry. I hope that the Government will not again do what it ha3 done in the past on some occasions when grants to assist the pearlshell industry have been made. The Opposition is at all times willing to help primary industries, particularly those which are being carried out in remote parts of the continent. On the occasion referred to, I drew attention to the fact that persons who were not in any way in need of the money participated in the grant. I hope that that error will not be repeated.

Senator Allan MacDonald:

– That is one of the difficulties associated with grants.

Senator COLLINGS:

– I hope that those who arc in need of financial aid to help them to carry on will get the money. Questions which were asked this afternoon should lead to some interesting revelations regarding assistance to wheatgrowers. If this nation is continually to be called upon to relieve different sections of primary producers - and the Opposition is always willing and ready to support such grants - we shall have to lay down definitely that persons who aru not in need of assistance, even though they may suffer some temporary disadvantage in respect of that portion of their income which happens to be derived from primary industries, shall not participate. The policy of perpetually “greasing tha fat pig “ is far from satisfactory; yet that is the policy which has been followed in granting assistance to the pearl shell and other industries. Out of the grants made in 1936 to assist the industry, Farquhar’s Proprietary Limited received £69 lis. 6d., notwithstanding that the proprietors of this concern live on Thursday Island, and are reputed to be well-to-do. Wyben Pearling Company Limited was paid £32S Ils. 4d. That firm was originally Burns, Philp and Company, which, however, found its fleet of nearly twenty boats too cumbersome to be handled in connexion with its merchandise and shipping agency, and consequently Wyben Pearling Company Limited was formed to take over the fleet. There was no need for any further fattening of this company which has paid some handsome dividends, the rate on one occasion being as high as 40 per cent. Another firm which participated in the grant was Bowden Pearling Company Limited, which received £269 2s. Sd. Herbert Bowden, the original owner, and now principal of the company, left Thursday Island over 30 years ago in order to manage the affairs of Bowden Brothers and Company Limited, Sydney; that firm has large operations in Japan. Mr. Bowden has retired from business, and is reputed to bo a wealthy man. He has been a frequent traveller to Japan, Europe and America He could afford to do his share of the maintenance of the pearling industry of Thursday Island, without any assistance from the taxpayers of the country.

Another participant was Charles Sinclair, who was paid £70 8s. 6d. This man was born in Torres Strait, his father having been one of the first white divers there. He is the only pearler who is nui financially strong. Had the whole of the £1,500 distributed to Thursday Island pearlers been paid to him, the payment might have been -justified. Yet he received only a comparatively small amount. The sum of £106 13s. 5d. was paid, to E. J. Hennessy who has sold his fleet, and was about to retire and leave the district. Morey and Company received £177 13s. 3d. Mr. Morey retired to Brisbane about twenty years ago, and has not carried on business since, although he has a working partner. Another company which shared in the grant was J. B. Carpenter and Sons, which was paid £91 9s. 2d. Both Sir Walter and William Carpenter are wealthy men who reside, in Sydney. It is said that the former gave £25,000 to imperial funds in order to obtain his knighthood. One of the brothers also participated in the grant, paid to assist the industry at Darwin. I shall not take up the time of the Senate by giving further particulars relating to recipients of previous grants. It is sufficient to say that the circumstances associated with these grants constitute a public scandal. I repeat what I said two years ago, when I expressed the hope that grants to assist primary producers shall be paid only to people who are in need, and not to those who are well able to get along without assistance.

Senator Cooper:

– Is there any one named Hocking on the honorable senator’s list?

Senator COLLINGS:

– No.

Senator COOPER:

– It should be there.

Senator COLLINGS:

– On a previous occasion when the Senate had before it a bill to grant assistance to the wheat industry, an honorable senator moved that at least £50 of the grant paid to any wheat-grower should be reserved to him and be beyond the claims of creditors. The Opposition, which always supports a system in such cases, favoured the proposal, but it was not supported by honorable senators generally. It is time that we awakened to the injustice of grants being made to persons who are not in need of assistance. In many instances, wealthy persons whose activities in primary industries are subsidiary to their other enterprises, have been paid considerable sums in this way.

Question resolved in the affirmative.

Bill read a first time.

Secondreading.

Senator FOLL:
Minister for Repatriation · Queensland · UAP

– I move -

That the bill be now read a second time.

This bill, which contains an amendment to tariff item 334 (c)(1), is complementary to the Newsprinting Paper Bounty Bill 1938. It provides for the imposition of the following additional rates of duty on unglazed newsprinting paper in rolls, namely : - 5s. a ton when the imported cost is less than £15 a ton; 7s. 6d. a ton when the imported cost is less than £14 a ton; and 10s. a ton when the imported cost is less than £13 a ton.

The additional rates will be imposed on a date to be proclaimed, concurrently with the proclaiming of the. operation of the act authorizing the payment of the bounty. On present indications, the proclamation will not be issued until at least twelve months from now, and, even then, these duties will apply only when the imported cost falls below £15 a ton. If the duties come into operation, the amount of the duty will automatically be deducted from the rate of bounty.

Question resolved in the affirmative.

Bill read a second time, and passed through its remaining stages without requests or debate.

page 2784

APPLE AND PEAR TAX ASSESSMENT BILL 1938

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

Bill (on motion by Senator Allan MacDonald) read a first time.

Second Reading

Senator ALLAN MacDONALD:
Assistant Minister · Western Australia · UAP

– I move -

That the bill be now read a second time.

The purpose of the bill is to provide the machinery for the creation of a fund for publicity and research in the apple and pear industry of Australia. The money so collected will be expended in Australia, mainly to increase the consumption of these fruits in the Commonwealth. The fund will be established by means of a sales tax on apples and pears sold in Australia, and the amount so collected will approximate £10,000 per annum. This sum will provide for an effective and continuous campaign of advertising our own fruit in this country. The tax is not being imposed as a means of raising revenue for the use of the Government; it is imposed at the request of the growers themselves and for their benefit. The raising of funds in this way is regarded as more satisfactory than the alternatives, of depending on voluntary subscriptions from the growers - a system which was operating inequitably - or of depending on the Commonwealth Government for a grant which, at present, the Government is not in a position to make available.

The maximum rate of tax is to be¾d. a bushel case. This rate will also apply to two half bushel cases of apples or pears, and to three trays of pears. The effective rate of tax to be prescribed is not to exceed½d. a bushel case.

Question resolved in the affirmative.

Bill read a second time.

In committee:

Clauses 1 to 10 agreed to.

Clause 11 -

Subject to and in accordance with the provisions of this act, the tax imposed by the Apple and Pear Tax Act 1938 shall be levied and paid upon apples and pears grown in Australia, and, on or after the first day of January, One thousand nine hundred and thirty-nine, sold by or on behalf of the grower.

Senator ALLAN MacDONALD:
Assistant Minister · Western Australia · UAP

– I move -

That the words “ the first day of January, One thousand nine hundred and thirty-nine “, be left out, with a view to insert in lieu thereof the words “ the date fixed by proclamation under that act “.

The reason for this amendment is that under the complementary legislation the imposition of the tax is to commence on a date to be fixed by proclamation, and not on a date specified in the bill.

Amendment agreed to.

Clause, as amended, agreed to.

Clauses 12 and 13 agreed to.

Clause 14 -

Every person liable under section twelve of this act to pay tax . . . shall . . furnish to the Commissioner a return in the prescribed form . . .

Amendment (by Senator Allan MacDonald) agreed to -

That at the end of the clause, the following proviso be inserted : - “ Provided that any period prior to the date fixed by proclamation under the Apple and Pear Tax Act 1938 shall, for the purposes of any return under this section, be excluded from the period in respect of which the return is furnished”.

Clause, as amended, agreed to.

Clauses 15 to 32 agreed to.

Clause 33. (Averment of prosecutor sufficient).

Senator WILSON:
South Australia

– This clause is contrary to all principles of British justice, because it places the onus of proof substantially on the defendant. According to French law, a defendant must prove himself innocent, whilst, according to British law, the prosecutor must prove the defendant guilty. I submit that the onus of proof should be the same in the case of prosecutions under this measure as in any civil or criminal prosecution. The clause provides that every averment of the prosecutor or plaintiff, contained in the information, shall be prima facie evidence of the matter averred. That means that the onus of proof is placed on the defendant. As it is intended to apply French law rather than British law, I oppose the clause entirely. There is no necessity for such a provision. If the clause were eliminated the ordinary principles of British justice would apply. I am aware that a provision of this nature is embodied in other legislation, but that does not justify its inclusion in this bill. It is now a common practice for departments to endeavour to make proof easy, but they should not depart from the broad principles which have made us proud of British justice.

Senator ALLAN MacDONALD:
Assistant Minister · Western Australia · UAP

– The principle embodied in this clause is laid down in practically every taxation measure. Prima facie evidence, of course, is not conclusive evidence, but it should stand until disproved. It is necessary that averments in connexion with prosecutions under this legislation should be accepted as prima facie evidence until disproved, because the accused person might be the only possessor of certain information. Provisions of this kind have stood the test of time.

Senator COLLINGS:
Queensland

– I am satisfied with the explanation given by the Minister. Senator Wilson has introduced a sinister suggestion which is not justified. Under this legislation, tax is to be levied on the growers of apples and pears to make possible a publicity campaign which will give the growers a better home market for their commodity than they have hitherto enjoyed. A provision of this kind is necessaryin order to deal with growers who are not prepared promptly to make the small contribution required of them.

Senator Wilson:

– This clause has nothing to do with the tax; it deals only with theonus of proof.

SenatorCOLLINGS.- If a grower were wrongly accused of failure to pay his contribution he would merely need to produce a receipt for payment. Without this provision, the department could be given a great deal of trouble. Senator Wilson should not have complained of the substitution of French law for British law, or suggested that this provision is on all fours with the Crimes Act.

Clause agreed to.

Clauses 34 to 40 agreed to.

Title agreed to.

Bill reported with amendments; report adopted.

Bill read a third time.

page 2785

APPLE AND PEAR TAX BILL1938

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

Bill (on motion by Senator Allan MacDonald) read a first time.

Second Reading

Senator ALLAN MacDONALD (Western

Australia - Assistant Minister) [5.12]. - I move -

That the bill be now read a second time.

I referred to this measure in my speech on the Apple and Pear Assessment Bill which has just been agreed to by the. Senate. It provides for a tax not exceeding fd. a case. Power is given to the Governor-General to make regulations prescribing a lower rate of tax. The revenues obtained from this tax will be paid into the Apple and Pear Publicity and Research Fund.

Question resolved in the affirmative.

Bill read a. second time.

In committee:

Clauses 1 to 3 agreed to.

Clause 4 -

A tax is imposed upon apples and pears grown in Australia and, on or after the first day of January, One thousand nine hundred and thirty-nine, sold by or on behalf of the grower.

Motion (by ‘Senator Allan MacDonald) agreed to -

That the House of Representatives be requested to make the following amendment: - Leave out the words “.the first day of January, One thousand nine hundred and thirty-nine”, insert the words, “a date to be fixed by proclamation “.

Clause agreed to, subject to a request.

Clauses 5 and 6 agreed to.

Title agreed to.

Bill reported with a request; report adopted.

page 2786

QUESTION

CLERK OF THE SENATE

Retirement op Mr. G. H. Monahan.

The PRESIDENT (Senator the Hon. J. B. Hayes). - It is with much regret that I have to announce that the Clerk of the Senate, Mr. Monahan, is about to sever his association with the Senate. He has a very long and honorable parliamentary service to his credit. Ho joined the staff of the Legislative Assembly of New South Wales on the 17th March, 1890. He was transferred to the Senate as Clerk of Papers on the 1st May, 1901, and was promoted to the position of Usher of the Black Rod and Clerk of Select Committees on the 1st July, 1908. He attained the position of Clerk Assistant on the 1st July, 1915, and was promoted to his present office on the 28th August, 1920. His total period of service to. the 31st December, 1938, will have been 48 years 9 months. In 1924, Mr. Monahan’s services were recog nized by His Majesty, and he was created a Companion of the Order of St. Michael and St. George. He has held the position of honorary secretary of the Commonwealth of Australia Branch of the Empire Parliamentary Association since 1928. Mr. Monahan has always been a most zealous officer, and he is one whom the Commonwealth can ill afford to lose. He has outstanding ability and a remarkable knowledge of parliamentary procedure. His wide experience and ability have always been placed at the disposal of honorable senators, who, I am sure, join with me in wishing him the long life and happiness that he has so well earned.

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

by leave - I move -

That this Senate, on the occasion of the retirement of George Henry Monahan, Esq., C.M.G., from the office of Clerk of the Senate, places on record its appreciation of his long and valuable service and offers to him its best wishes for many years of happy retirement.

I am pleased to state that I have received the following letter from the Prime Minister (Mr. Lyons) : -

I regret that my parliamentary duties will preclude my personal attendance at the unofficial function this afternoon to bid an unofficial farewell to Mr. Monahan, but I would like to associate myself with it by this message through Senator McLeay.

Although in my sphere in another place, .1. have not been privileged to have a close association with Mr. Monahan, the courtesy and ;efficiency which have always characterized his service have been patent to me.

After an honorable career in the service of tho Parliament extending over 4.8 years, the last eighteen of which were spent as Clerk of the Senate, Mr. Monahan is now about to leave to enjoy, we sincerely hope, a wellearned respite.

As Leader of the Government, I desire to express to him my keen appreciation of the notable public service he has rendered, and the hope that he will enjoy for many years a retirement that will be blessed with good health and every happiness.

I submit this motion with mixed feelings. Personally, I deem it a pleasure to have the opportunity to move that we place on record our appreciation of the service that Mr. Monahan has rendered to -the Senate by the faithful discharge of his duties over a very long period. But, unhappily, the occasion for the motion is the impending retirement of one whom we have come to regard as a wise counsellor in matters appertaining to the conduct of business in this chamber.We have readily sought the advice of Mr. Monahan, knowing full well thatwe would not appeal to him in vain for the help that all of us need from time to time in regard to the affairs of the Senate. Ever courteous and obliging, he leaves behind a record of highly efficient service.

SenatorMcLEAY. - We regret that the time has come for us to bid him an official farewell. The sadness of the parting is tempered, however, by the knowledge that he has chosen to spend his retirement in Canberra, and that he will, no doubt, oftenbe seen in the precincts of the chamber which he has laboured for so long. On behalf of the members of the Government in this chamber, and ministerial supporters, I say farewell to Mr. Monahan, and express the hope that he will long be spared to enjoy to the full the retirement he so richly deserves.

Senator COLLINGS:
Queensland

– On behalf of my colleagues and myself I support all that has been said by you, sir, and by the Leader of the Senate. Most of my colleagues have had a shorter acquaintance with Mr. Monahan and his capabilities, courtesies and kindnesses than I have had There have been occasions when Mr. Monahan’s knowledge of the Standing Orders has perhaps “ cramped my style but all the same I have never failed to recognize his ability, and the fact that when he thought that he was right, he, in his quiet, unostentatious way, held to his view with such remarkable tenacity, that we had nochance to shake him. or, indeed, you, sir, when you had received his competent advice. Always we feel the pang of parting with officers of the Senate who have endeared themselves to us. That wonderful record of service in the public life of Australia, which has just been recited by you, Mr. President, will go into the records of the Senate for all time, and will be the best monument that Mr. Monahan can have. If will be his warranty for saying that we regretted losing him, and thatwe hope sincerely that every minute of his life in retirement will bring good health, and ever-increasing happiness mid contentment.

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

. -When I first became a member of this chamber I recognized quite early Mr. Monahan’s ability and the exceptional way in which he carried out his duties. Since .I have been Chairman of Committees I have been more closely associated with him, and have been able to recognize to an even greater degree his outstanding fitnessfor the office he holds. The Leader of the Opposition (Senator Collings) said that sometimes his style had been cramped by Mr. Monahan’s knowledge of the Standing Orders. That reminded me of a Speaker in a State Parliament, of which I was once a member, who, in delivering a speech on his retirement from the Chair, said that he had only erred once, and that was when he had not done as he had been directed by the Clerk. I think that any presiding officer in the Senate could have said the same of Mr. Monahan. With other honorable senators I wish Mr. Monahan happiness and good health, and I am glad to learn that he proposes to spend his retirement in Canberra, because his guidance will still be available to us should it be required.

Senator CRAWFORD:
Queensland

– As one of the oldest members of the Senate, I desire to associate myself and other senators of the rank and file, with all thathas been said concerning Mr. Monahan.Of his merits, the half has not been told. He has been an efficient officer of this chamber, and all ofus who have had a long association with the Senate feel that in him we have a personal friend whose guidance assisted us on many occasions to avoid the pitfalls which beset the parliamentarian. I join in the hope that Mr. Monahan will long be spared to enjoy the rest and recreation he has so well earned after long service as an officer of the Commonwealth Parliament. The Leader of the Opposition mentioned a monument, and I would add that Mr. Monahan’s life’s work will be a more eloquent memorial than any that can be erected by human hands, He carrieswith him into his retirement the goodwill and affection of every member of theSenate.

Senator A J McLACHLAN:
SOUTH AUSTRALIA · NAT

– I think that it would be unbecoming of me were I not to say a word or two in support of the motion. First as a private senator and later as a Minister, I have had a long association with Mr. Monahan, and I have learned that he .possesses those qualities, which many public servants possess - the desire to serve and the anxiety to be right. At the termination of his distinguished career, we cannot do less than pay this tribute to him for the service which he has rendered to this country. Another capacity in which he has rendered valuable service to Australia is as secretary of the Commonwealth of Australia Branch of the British Empire Parliamentary Association. With unflagging zeal he has applied himself to the interests and aspirations of that association which may mean so much to the various units of the British Empire as the years go by. The Leader of the Senate sounded a note of farewell. It is a sad note; as Byron said -

Farewell! a word that must be, and hath been -

A sound which makes us linger - yet - farewell.

In the case of Mr. Monahan, I trust that it will be merely au revoir; as he is to reside in Canberra, we shall see him from time to time. We trust that he will maintain his connexion with the Empire Parliamentary Association for which he has done so much, but we know that he will be spared the pain of attending the Senate chamber with that regularity which has characterized his service during so many years. We appreciate his good service, geniality, and untiring zeal in assisting to conduct the business of this chamber with decorum, and, indeed, dignity.

Question resolved in the affirmative.

The PRESIDENT:

Mr. Monahan has requested me to thank honorable senators for their kind remarks - tributes which I may add were well deserved. Sitting suspended from 5.8^ to 8 p.m..

page 2788

CUSTOMS TARIFF (No. 3) 1938

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

Bill (on motion by Senator Foll) read a first time.

Second Reading

Senator FOLL:
Minister for Repatriation · Queensland · UAP

– I mOVE -

That the bill be now read a second time.

This bill seeks to legalize certain alterations of the tobacco import duties. These duties are, in effect, penal duties imposed in instances in which less than the prescribed percentages of Australian leaf are used. This policy of imposing penal duties on imported tobacco leaf was first applied by the Government in May, 1936, and approved by Parliament in the same year. From that date increased duties were imposed on imported tobacco leaf used in conjunction with less than 2$ per cent, of Australian leaf in cigarettes, and less than 13 per cent, of Australias leaf in manufactured tobacco. This action had the effect of forcing all manufacturers to use the required proportion of Australian leaf, whereas previously some manufacturers were disinclined to incorporate local leaf in their blends. This kas resulted in much keener competition for Australian leaf, and has made practicable the purchase of all marketable leaf grown locally at prices considerably in excess of world parity for comparable leaf.

Some months ago a review of the Australian tobacco industry was undertaken, and, having regard to the increased production of Australian leaf combined with the remarkable improvement of quality, the Government decided to raise the minimum percentages of Australian leaf used in the manufacture of cigarettes and tobacco. Accordingly steps were taken in September last, to raise the required percentage from 2i- per cent, to 3 per cent, in cigarettes, and from 13 per cent, to 15 per cent, in respect of tobacco. A similar adjustment of the Australian leaf percentages is being m’ade in relation to manufactured tobacco and cigarettes imported from the United Kingdom. This can be regarded as a second step in the implementation of the ‘Government’s policy to ensure the purchase and consumption of all usable tobacco leaf grown in Australia. Since the Lyons Government took office in 1932, the consumption of Australian-grown leaf has continued to increase. During 1937-38, a quantity of 5,400,000 lb., was used by , manufacturers, as compared with a consumption of 2,600,000 lb. in 1931-32. Furthermore, financial assistance provided by the Government for research, experimentation and instruction has brought about an improvement of the general quality of leaf produced which is reflected in the remunerative prices obtained by growers of leaf of the right type. I assure honorable senators that immediately developments justify such action, the Government will give every consideration to increasing still further the minimum percentages of Australian leaf required to be used in manufacture.

Senator COLLINGS:
Queensland

– The Opposition will gladly support this measure. I need hardly say that, over the years, honorable senators

On this side have put up a very solid fight in the interests of Australian-grown tobacco. I recall with a good deal of glee the time when we were told that we should never be able to make a job of the industry, that locally-grown leaf would never suit the Australian smoker’s taste, and that it- did not burn cool. On the latter point, I was unable to pass expert judgment because I have never indulged in tobacco in any form. It is pleasing to find that such prognostications have not been justified. “We are pleased to hear the Minister state that the consumption of Australian-grown tobacco is increasing, and that the public is more and more appreciating the local article. I feel very kindly disposed towards this industry, for the further reason that it has been firmly established in Queensland, where the fine bright yellow leaf so much sought after by those who appreciate good tobacco is being grown. Naturally, all Queenslanders are proud of that industry.

Senator KEANE:
Victoria

.- I am delighted to hear the Minister say that the use of Australian .leaf has increased to such an extent that last year 5,400,000 lb. of Australian-grown leaf was used in manufacture. I am glad also that the Government realizes that this industry is worth while. It is more than probable that Queensland’s .success will be emulated in certain parts of Victoria. I hope that the Government will continue its research work with the object of eliminating blue mould, and that ultimately the whole of the tobacco smoked in this country will be Australian-grown. I can claim to know a little about tobacco. If I am spared to reach the age of 60, I shall have smoked 11-J cwt. of tobacco, despite the fact that many years ago a doctor told me that if I did not smoke I would be a jolly big fellow. When I was a member of the House of Representatives, excellent work was done for the encouragement of this industry by the Scullin Government, under the ministerial supervision of Senator Daly. As the result of the research work undertaken, many growers were encouraged to enter the industry. Unfortunately, in the majority of areas, -the same success was not achieved as is being enjoyed in northern Queensland. To-day, the best Australian leaf compares more than favorably with the imported article. Whenever I can get it, I smoke Australian tobacco; I think it is an excellent narcotic, at least equal to anything brought here from overseas. To-day, all of the old prejudices against the Australian leaf have disappeared. I believe that big areas a.re available in New South Wales, where large numbers of people could earn a livelihood in this industry, provided the Government continues the research work that is now being carried on.

Senator AMOUR:
New South Wales

, - I am pleased indeed that the Government is doing something in the interests of the tobacco-growers. There has been considerable discontent among the growers in the Tamworth district, where, in the past, large areas on which tobacco had been left standing presented a sad spectacle. At that time the growers were unable to dispose of their leaf owing to inadequate protection against the imported article. I made repeated requests on behalf of those growers that greater tariff protection should be afforded in order that they might be enabled to continue in the industry. They had sheds stacked with leaf which they were unable to- dispose of, and yet they could not afford to buy the necessary implements or even the seed with which to- sow another crop. They were in a very bad plight. There is no need for me at this juncture to dilate upon the importance ofthis industry. All honorable senators, I believe, are fully aware of the excellent fight which Mr. McKnight, of Tamworth, has put up on behalf of the growers in his district. This measure is more than justified; 1 believe, however, that it might not have been introduced but for the inclusion in the Cabinet of the honorable memberfor New England (Mr. Thompson). He realizes, of course, that his electorate contains a large number of people who are anxious to resume operations in this industry. Since I have been a member of the Senate, the majority of our discussions so far as primary products are concerned, have related to wheat; this is the first time tobacco has been dealt with. The producers in this industry are entitled to just as much assistance and consideration from this Parliament as the wheat-growers. I hope that through this measure the industry will be enabled to prosper, not only in the Tamworth district, but also in other parts of New South Wales.

Senator GIBSON:
Victoria

.-I feel sure that tobacco-growers throughout Australia will welcome this measure. I can see no reason why we should not be able to grow leaf as good as is grown in any other part of the world. 1” believe that the day will come whenwe shall be independent of Virginian or any other imported tobacco. Unfortunately, in the past the industry was commenced in districts which were suitable only for the production of black leaf, whereas the Australian market required a light tobacco. It has now been found that the required leaf can be produced in parts of Queensland and Victoria, and with further encouragement, growers will be induced to raise the general standard of their product. It, is unfortunatethat in theNew England district, to which Senator Amour referred, many people have been growing a black leaf which is quite unsuitable to the Australian taste. That tobacco could only be exported to the East, with the result that the growers were obliged to accept extremely low prices for their leaf. That difficulty has now been largely overcome. The Council for Scientific and Industrial Research is to be congratulated on its efforts in connexion with the control of blue mould. Only two or three years ago the raising of tobacco seedlings was almost impossible, because early in its life theleaf became infected with blue mould. The Council for Scientific and Industrial Research has now practically overcome that disease, with the result that to-day growers have much more confidence than they had previously. I hope that the day is not far distant when Australian growers of tobacco will be able toproduce a leaf which is equal to the best leaf grown in any other country. Honorable senators will probably have noticed that the words “Virginian leaf mixture “ do not now appear on containers. Evidently, the proportion of Australian leaf used in blends is now much greater than formerly. I believe that smokers are beginning to appreciate the qualities of Australian tobacco and that in the near future, growers of tobacco will obtain good returns for a good article. I welcome the bill.

Question resolved in the affirmative.

Bill read a second time.

In committee :

Clauses 1 to 8 agreed to.

Schedule

Senator KEANE:
Victoria

.- As this bill is important to the growers of tobacco, I suggest that some publicity in regard to it be issued. Otherwise, because so little publicity is given by the press to the proceedings in this chamber, many growers may not know that legislation requiring the use of a bigger proportion of Australian leaf in the tobacco and cigarettes which are offered for sale has been before the Senate.

Senator FOLL:
Minister for Repatriation · Queensland · UAP

.- Full details of the change were included in my secondreading speech, but the suggestion of the honorable senator is so worthy of consideration that I shall bring it under the notice of the Publicity Branch of the Prime Minister’s Department immediately.

Schedule agreed to.

Title agreed to.

Bill reported without requests; report adopted.

Bill read a third time.

page 2790

CUSTOMS TARIFF (No.4)1938

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

Bill (on motion by Senator Foll) read n first time.

Second Reading

Senator FOLL:
Minister for Repatriation · QUEENSLAND · NAT; UAP from 1931

– I move -

That the bill be now read a second time.

This bill gives effect to the tariff alterations consequent upon the trade agreement with Switzerland. In conducting the negotiations which led up to the conclusion of that agreement, the Australian negotiators, for the purposes of offering turill concessions to Switzerland, selected lines in which Australian industry had little or no interest. A careful perusal of the list of concessions contained in the printed document which has been circulated makes it clear that most of the goods in respect of which tariff alterations are proposed are peculiar to Switzerland. Accordingly, I believe that the tariff alterations which ore now proposed can safely be adopted without prejudicing the interests of Australian industries.

Question resolved in the affirmative.

Bill read a second time.

In committee:

Clauses 1 to 3 agreed, to.

Schedule

Senator FRASER:
Western Australia

– I enter my emphatic protest against the procedure adopted in connexion with this bill. Discussion of the schedule would be futile, because there is no possibility of altering it.

Senator Gibson:

– Why not?

Senator FRASER:

– It forms part of an agreement which has already been signed. We may request that an alteration be made, but what would be the effect if we did so? The procedure is wrong.

Schedule agreed to.

Title agreed to.

Bill reported without requests; report adopted.

Bill read a third time.

page 2791

EXCISE TARIFF (No. 2) 1938

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

Bill (on motion by Senator Foll) read a first time.

Second Reading

Senator FOLL:
Minister for Repatriation · Queensland · UAP

– I move - That the bill be now read a second time.

The purpose of this bill is to legalize the increase of Sd. per lb. excise on manufactured tobacco proposed in connexion with the budget in September last. This increase forms part of the Government’s proposals to finance the wider defence plan. Over a full twelve months’ period the increase of excise is expected to yield £500,000, but during the current financial year, 193S-39,- it is anticipated that approximately £375,000 will be added to the revenue. As certain interests claim that the Government’s action under this measure has resulted in a reduction of the protection accorded to the Australian tobacco-grower, I desire to state, first, that the protection to the grower is granted mainly by means of customs duty on imported leaf, and to a further degree by the differential excise of 8d. per lb. in favour of tobacco made wholly from Australiangrown leaf. Secondly, the increase of excise duty applies irrespective of whether or not the manufactured tobacco is made wholly from Australian-grown leaf or contains imported leaf, and, as 12 lb. of imported leaf is used for every 5 lb. of Australian leaf used in the manufacture of tobacco, it could more justlybe claimed that the excise increase affects imported leaf to a greater degree than it does locally-grown leaf. I can assure honorable senators that this increase of excise duty does not reduce the substantial protection, ranging up to 500 per cent, ad valorem, which the Government has accorded to the tobacco industry. In conclusion, I point out that the Government has widened the market for the consumption of Australian-grown leaf by its action in increasing the minimum percentage requirement of Australiangrown leaf in tobacco and cigarettes.

Senator KEANE:
Victoria

.- For the reasons stated by the Leader of the Opposition (Senator Collings) on a bill with which the Senate has just dealt, no opposition will he offered to this measure by members on this side.

Question resolved in the affirmative.

Bill read a second time and passed through its remaining stages without requests or debate.

page 2792

MOTOR INDUSTRY BOUNTY BILL 1938

Message received from the House of Representatives, intimating that it had agreed to the amendment made by the Senate in this bill.

page 2792

TRADE AGREEMENT (SWITZERLAND) BILL 1938

Message received from the House of Representatives, intimating that it had agreed to the amendment made by the Senate in this bill.

page 2792

HOUR OF MEETING

Motion (by Senator McLeay) agreed to-

That the Senate, at its rising, adjourn till 10.30 a.m. to-morrow.

page 2792

ADJOURNMENT

Victorian Railways: Dismissal of E Employees - Defence Annexes - Unemployment : Christmas Relief - Telegraph and Telephone Communications

Motion (by Senator McLeay) proposed -

That the Senate do now adjourn.

Senator KEANE:
Victoria.

.- I again direct attention to the dismissal of employees of the Victorian Railways, particularly those engaged in the workshops, and I suggest that the Defence Department should expedite its programme for construction of annexes to railway workshops, so as to absorb mcn who otherwise would be put ofl. In Victoria, between 600 and 1,000 men are threatened with dismissal. This Parliament has, this session, passed legislation to give relief to Australian primary producers. Some consideration should now be given to railway workers. The newly-constructed Cabinet now includes a. Minister whose sole duty it is to organize and. maintain continuity of the Commonwealth’s works programme. He should be able to provide jobs for the workers in a wellordered way. The construction of annexes to the railway workshops could, with advantage, be expedited, so that the men whom it is now proposed to dismiss could be retained. The majority of employees in railway workshops are highlytrained men of outstanding ability. It would be a tragedy if they were forced to join the already large army of workless in Victoria.

Senator SHEEHAN:
Victoria

– I desire to amplify a question which I asked of the Minister representing the Minister for Defence this afternoon. I asked the honorable senator if he would ascertain whether the Government was prepared, in pursuance of its defence programme, to make available a sum of money for the improvement of railway rolling-stock and permanent ways in the various States. I recognize the obligation resting upon the States to maintain their own railway services, and I do not suggest that the Commonwealth should assume entire responsibility for this work. An appeal was made to the Commonwealth Government by honorable senators recently for a special grant to tide the unemployed over the Christmas season. The answer given was to the effect that it was hoped that relief would be given to the unemployed by immediately embarking on certain defence works, and that relief given in this manner would he of much more value than the indiscriminate spending of money by way of a Christmas grant. Yesterday the Minister for Works (Mr. Thorby) was approached by Senators Keane, Cameron, Brand and myself, and we elicited the information that it was proposed to undertake, almost immediately, certain defence works. Replying to Senator Cameron in this chamber last Friday afternoon, the Leader of the Senate “(Senator McLeay) suggested that Victoria should meet its unemployment difficulties by an increase of taxes. I point out that workers in. that State are already bearing a heavy burden of taxation, and have subscribed a substantial amount for the relief of unemployment. A large sum has also been placed to the credit of the Victorian Employment Council, and has been utilized in finding jobs for the workers. Possibly the government of Victoria could continue for some time to maintain its rolling-stock and permanent ways, but, in my opinion, the railway equipment and trucks in that State are in such a condition that, from a defence standpoint, a Commonwealth grant i3 imperative so that, in case of emergency, they would be able to operate with a reasonable degree of efficiency. If the renovation of rolling-stock and permanent ways were undertaken, the dismissal of large numbers of employees would be unnecessary. The Victorian Government originally budgeted for a railway deficit of £180,000 this year. It is now believed that the deficit will reach £S95,0t)0. It is understood that, as the result of this revision of the State’s financial proposals, the dismissal of at least 1,700 employees will be obviated. This indicates that the Victorian Government is making a determined effort to prevent a drastic increase of the number of the unemployed . in that State. Many of the railway employees who may be dismissed are technicians capable of performing work of a high standard. Honorable senators may be interested to know that, although the normal life of a locomotive engine is approximately 25 years, the average age of engines used on the Victorian railways is 26 years. This means that many of them have been in service for up to 40 years - fourteen years beyond their normal life. The economic life of a railway truck is in the region of 30 years, but in Victoria to-day there are trucks that have been in service for more than 50 year3. This is important from a defence standpoint. If our railways are to play the part which they should in a system of national defence, they must be efficient. In recent years the Victorian Railways Commissioners have embarked upon an extensive programme of reconditioning the -permanent way. Money thus expended has been drawn from unemployment relief funds. The stage has been reached, however, when the railway authorities are unable to proceed any further in this direction and employees are being dismissed. It is true that a considerable amount of work has been carried out on the main lines from Albury to Melbourne, and Melbourne ‘to Adelaide, two of the most important sections of the Australian railway system; but other equally important lines require attention. It is unfortunate that all railways in Australia are not controlled by the Commonwealth Government. There are good and sufficient reasons why the Commonwealth should come to the aid of the States in this matter. The defence value of the State railways needs no emphasis. I do not urge that the States should be relieved of their own responsibilities in regard to the railways, but it is necessary for the Commonwealth to assist those States which desire to cooperate with it in putting the defence machine into thorough order. If it be essential to establish annexes to private workshops in order to enable defence equipment to be supplied in large quantities in times of emergency, I suggest that the Commonwealth might well make a contribution to the States to enable them to bring their railway systems to a state of efficiency.

It is believed in some quarters, I understand, that the Government of Victoria is opposed to the establishment of an annexe at the Newport Railway “Workshops ; but that is not quite true. Representations have been made to the Victorian authorities on behalf of the Commonwealth- Government that they should make a contribution to the cost of this work far greater than they anticipated. That State is prepared to go on with the scheme if the Commonwealth will contribute a fair share of the cost. This matter merits the sympathetic consideration of the Commonwealth Government. If some of the work in connexion with the annexe could be put in hand immediately, it would bring relief during the Christmas period to persons who are now badly in need of work.

Senator CLOTHIER:
Western Australia

.- Recently, Senator Foll, as Minister representing the Minister for Defence, said that the various States would be assisted in providing work for the unemployed before Christmas. Yesterday I got into touch with the Minister for Employment in Western Australia, and I was informed that no work had yet been put in hand to absorb the unemployed. Only about a fortnight remains before Christmas, and I suggest that some work should be provided immediately. Drill halls are to be built, and unemployed could be absorbed at the Pearce and Maylands aerodromes. At the drill halls that are awaiting erection, carpenters and painters could be employed, but a large number of the unemployed in Western Australia are not tradesmen. I was advised by the State Minister yesterday that these men were anxiously awaiting work of a similar kind, to that undertaken by the Commonwealth Government last year. It is essential that employment be found for these men immediately. Christmas will be a desolate season for them if they have no money in their pockets.

Senator AMOUR:
New South Wales

– I also urge the Government to do something to provide work for the unemployed, not only in New South Wales, but also throughout the Commonwealth. The Government may claim that it is already doing something to relieve the position before Christmas, but, if any of the unemployed fail to obtain work at this period, they will be very unfairly treated. Work should be found immediately for all men in the Commonwealth who are now unemployed, otherwise they will have anything but a merry Christmas. Works could be put in hand without delay through State instrumentalities, such as the public works departments and the municipal and shire councils. I have just received this letter from the secretary of the New South Wales branch of the Amalgamated Postal Workers Union of Australia -

Dear Sir,

The New South Wales branches of the Amalgamated Postal Workers Union and of the Australian Postal Electricians Union are gravely perturbed over the’ limitation of telegraph and telephone communication works, which it is feared will, within the very near future, result in the dismissal of a large number of employees, almost the whole being returned soldiers. The availability of communication, it is said, is the first line of defence, and in this regard, telegraph and telephone services are a vital link. Without hesitation, we definitely assert that a district does not exist within the Metropolitan area of Sydney where existing provisions are not totally inadequate to meet the demands, while in country districts sufficient work is available in erection of poles and maintaining lines in a state of efficiency to provide continued employment for every man nt present temporarily employed.

Private employees have been urged by the Government to do their utmost to provide cm.ployment, but the restrictions being placed on the expansion of an essential service by the Government can only create public alarm, which it is felt is not in the interests of the people of the Commonwealth. Public moneys are being diverted for defence purposes, but what greater line of defence can be accomplished than by allocating funds for the maintenance and extension of services iri the Postal Department, thereby continuing the employment of a very large number of men. We understand the allocation for this year has been depleted for defence purposes. The defence policy of the Government has added a ‘ stimulus to the business community which is taxing the already lag in meeting increased traffic by the present telephone services.

Your co-operation is sought with the object of influencing the Government to allot sufficient funds to the Postal Department for the purpose of providing additional equipment to meet public demands.

This letter arrived by air mail, and I believe that a similar communication was received by every member of this Parliament. It contains an urgent appeal to the Government to provide work which would give some security over the Christmas period to postal employees, most of them returned soldiers, who are threatened with dismissal. I hope that the fear which members of this organization have that they will be displaced will prove to have been uncalled for, and that sufficient money will he allocated from the Consolidated Revenue, into which the postal revenue is paid, to ensure that these men will be kept in employment.

Senator FRASER:
Western Australia

– I also appeal to the Government to take steps to see that no unemployed person is left without work at this period of the year. I have been associated with the officials in Western Australia who deal with the problem of unemployment and they are perturbed, as I am, over the present situation. On the 7th. October, I was informed, in reply to a question which I asked in this chamber, that defence expenditure to the amount of £478,365 would be incurred in Western Australia this year, and since that time an additional sum has* been allocated to that State. 3?he Minister said that it was foolish to talk about unemployment in Western Australia in view of the sum allotted to that State for defence works, since many men were now employed on those works. I was informed in reply to another question that during the period from July to October, contracts had been let in Western Australia to the amount of about £40,000. I was told that over £600,000 had been allotted to Western Australia for defence purposes, but from that total must be deducted a certain sum for goods manufactured in eastern States. A few hundreds of men in the building trades are in need of employment, and 1 appeal to the Government to proceed with urgent works. It seems that honorably senators have been appealing in vain to the Government to provide immediate relief for those who are now unemployed. As the present sittings of Parliament will terminate within a day or two, I trust that some of the works proposed tobe undertaken will be commenced immediately so that relief can be afforded to the unemployed before Christmas. As the money has been allocated and a schedule of works has already been drawn up, I trust that the Minister will be able to announce to-morrow that employment will be provided immediately for a large number of men.

Senator DARCEY:
Tasmania

.- I remind the Minister (Senator Foll) that Tasmania, which is the smallest State in the Commonwealth, has an acute unemployment problem. As a member of the United Social Service Committee in Tasmania, I have been engaged in social work for many years, and I can assure honorable senators that there is a good deal of poverty in that State. A few hours ago the Minister told us what the Government proposes to do, but I hope that the money already allocated willbe disbursed immediately so that employment will be provided before Christinas. The amount allocated to Tasmania is very small, but as otherhonorable senators have made an appeal on behalf of the States which they represent, I again bring under the notice of the Government the claims of Tasmania. I do not want again to remind honorable senators how easy it is to finance public works. Money can be made available by the Commonwealth Bank free of interest. Paragraph 530 of the report of the Royal Commission on Monetary and Banking Systems reads -

The Commonwealth Bank has curtain powers delegated to it. by statute, and the board’s duty to the community is to exorcise those powers to the best of it’s ability. Where there is a conflict between the Government’s view ofwhat is best in the national interest, and the board’s view, the first essential is full and frank dismission between the two authorities with a view to exploring the whole problem. In most cases ‘this should ensure agreement on a policy to be carried . out by the bank which it can reconcile with its duty to the community, and which has the approval of the Government. In cases in which it is clear beyonddoubt that the differences are irreconcilable, the Government should give the bank an assurance that it accepts full responsibility forthe proposed policy, and is in a position to take, and will take, any action necessary to implement it. It is then the duty of the bank to accept, this assurance and to carry out the policy of the Government.

As the royal commission has stated that the Commonwealth Bank can make money available free of interest; I urge the Government to take advantage of the wonderful opportunity thus afforded and to obtain the money required in that way.

Senator FOLL:
Minister for Repatriation · Queensland · UAP

in reply - I assure honorable senators who have spoken on the subject of unemployment, that the Government is not overlooking its promise to speed up defence works in order to provide as much employment as is possible before Christmas. I know that the Minister for Works (Mr. Thorby) has been working almost 24 hours daily in preparing a schedule of works to be commenced as early as possible. I shall confer with him this evening to see whether it is possible to obtain details of the works to be put in hand, and, if possible, 1 shall make a statement on the subject to-morrow.Noone is working harder, more earnestly or more conscientiously than is the Minister for Works, and I believe that satisfactory results will be achieved.

I may explain that annexes are not being provided for private enterprise; they will remain the property of the Commonwealth. Annexes are being built on to Commonwealth buildings and private establishments in order to facilitate economic working. They are essentially Commonwealth Government workshops and arc being attached to existing buildings so that there can be closer cooperation and greater opportunity to utilize the services of skilled artisans.

I remind Senator Sheehan, who suggested that the Commonwealth Government should make money available to the Victorian Government for the rehabilitation of its rolling-stock, which might be used to transport troops, that if a sum were made available to one State,other States would also be entitled to similar consideration. Moreover,the rolling stock in some States is in better condition than that in others, and even if funds were available it would be almost impracticable to devise a satisfactory basis on which to operate. If the Vicrorian Government were assisted in that way, the Commonwealth Government might then be asked for financial assistance to recondition trams and buses, because they, too, could be used for the transport of troops. I shall, however, bring the honorable senator’s suggestion under the notice of the Minister for Defence (Mr. Street).

Question resolved in the affirmative.

page 2796

PAPERS

The following papers were pre sented : -

Australian Broadcasting Commission Act - Sixth Annual Report and Balance-sheet of the Australian Broadcasting Commission, year ended30thJune,1938.

Bankruptcy Act - Tenth Annual Report by the Attorney-General, year ended 31st July, 1938.

Science and Industry Endowment Fund - Eleventh Annual Report of the Trustees, year ended 30th June,1938.

Northern Australia Survey Act - Report of theCommittee appointed to directand control the Aerial, Geological and Geophysical Survey of Northern Australia, for the period ended 30th June,1938.

Nauru - Ordinances of 1938 - No. 4 - Appropriation (Supplemental ) 1937. No. 5 - Nnuruan Royalty TrustFund Appropriation (Supplemental) 1937. No. 6 - Appropriation 1938. No. 7 - Nauruan Royalty Trust Fund Appropriation 1938.

Senate adjourned at 9.0 p.m.

Cite as: Australia, Senate, Debates, 7 December 1938, viewed 22 October 2017, <http://historichansard.net/senate/1938/19381207_senate_15_158/>.