Senate
14 May 1940

15^th Parliament · 2^nd Session

AUSTRALIAN LABOUR PARTY (NON-COMMUNIST):
QUESTION
- HOUSING IN CANBERRA
NAVALVICTUALLING OPERATIONS
QUESTION
- CENSORSHIP OF HANSARD
QUESTION
- WOOL APPRAISEMENT AT NEWCASTLE
QUESTION
- LANDS FOR MILITARY PURPOSES:
QUESTION
- WHEAT : DESTRUCTION BY MICE
QUESTION
- SPORTING AMMUNITION
QUESTION
- AUSTRALIAN BROADCASTING COMMISSION
QUESTION
- WAR FINANCE
BEQUEST TOTHE SENATE
QUESTION
- SALE OF CANADIAN WHEAT TO GREAT BRITAIN
QUESTION
- DEFENCE EXPENDITURE IN WESTERN AUSTRALIA
COMMONWEALTH ELECTORAL BILL 1939
WAR PENSIONS APPROPRIATION BILL 1940
INVALID AND OLD-AGE TENSIONS APPROPRIATION BILL 1940
QUESTION
- WAR IN EUROPE
FINANCIAL STATEMENT 194Q-41
- Budget 1939-40
- Wah Expenditure
- Taxation Proposals
- Income Tax - Individuals
- Land Tax
- Estate Duty
- Sales Tax
QUESTION
- GOVERNOR-GENERAL’S SPEECH
QUESTION
- DRUMMOND KEEPS SILENCE
QUESTION
- HOUR OF MEETING
PAPERS

The President (Senator the Bon. J. B. Hayes) took the chair at 3 p.m., and r«ad prayers.

ELECTORAL Aer AMENDMENT.

SENATE Election. Procedure. Senator BROWN.–I ask you, Mr. President, whether your attention kas been directed to the following statement which appeared in the Sun NewsPictorial, Melbourne, on the 13th May: -

SIT-DOWN STRIKE IN SENATE.

Threat ‘ Unless Ballot System Changes.

Storey, Sunday. - Senator Dein said venterlay that United Australia party senator* would hold a Bit-down strike if ‘ the ballot- papers for the nest Senate elections were not altered;’ f “

Th.£ PRESIDENT. - I have not seen the statement referred to.

Senator BROWN.- Then T now pall your attention to it. I do not know whether Senator Dein really made the statement reported, ‘ but if he did, I ask you, sir, whether you have any jurisdiction over senators who advocate unconstitutional methods to compel the passing of particular legislation, and if so, what action, it any, do., you propose to take? Also, do you not think that such statements are highly reprehensible, in view of the Government’s efforts to convince the coal-miner’s that constitutional action is the proper course to take in order toaffect a settlement of the dispute in whichthey are involved?

The PRESIDENT.- I have no control over senators outside the Senate. In this chamber, as the honorable senator must know, Iambound by the Standing Orders.

Senator ASHLEY. - Mr. President, your attention having been drawn to the statementattributed to Senator Dein, doyounotconsider that it is at variance withthehightraditions of the Senate, andwillyou require Sena tor Dein to apologize forsuchagross insult to this chamber ?Further, as the billtoalter the form of the Senate ballot-paper has not yet passed through this Parliament, will you direct honorable senators not to makestatemenssuchasthat which Senator Dein is “ reported to have made, reflectingontheHouseof Representatives in its handlingof particular legislation?

The PRESIDENT. - Fortunately, I. amnotresponsiblefor statementsmade outsidethischamber.

Senator GIBSON.- Throughyou,Mr. President, I ask SenatorDein whether be made thestatement attributed to him?

SenatorDEIN.-I did not.

Senator BROWN.- Through you, Mr. President, and in order to safeguard the goodnameofthe Senate aswell asto be fair to the intelligence of Senator Dein, I ask that honorable gentleman whether he will make a public statementthrough the press of what he didsayat the meeting at which he was alleged to have declared that hewouldtakepartin a sit-down strike in , the event of legislation toalter theformofSenateballot-papersnot being passed?

Senator DEIN.- If Senator Brown will ask me a sensible question,I shall give him a sensible answer.

page 734

AUSTRALIAN LABOUR PARTY (NON-COMMUNIST):

SenatorAMOUR.-byleaveIdesire to state, forthe information of honorable senators,thatSenatorArmstrong and I haveceasedourmembershipofthe A us- tralian Labour party in New South “Wales and that we are now members of the non-Communist Branch of the Australian Labour party in thatState. I have been elected the leader of that party in the Senate.

page 734

QUESTION

HOUSING IN CANBERRA

Senator FOLL:
QUEENSLAND · NAT; UAP from 1931

– On the 18th April, Senator Collings asked the following questions, upon notice : - -

What amount was voted during the last financial year for housing in Canberra!
What is thevalue of the work already completed is this programme?
What amount has been actually paid out, as at this date, on account of thework already completed?

I am now in a position to supply the following,answerstothe honorable senator’s questions: -

The amount voted was £228,121. During the course of the financial year, a further sum of £108,198 was transferred fromthe amount provided for other architectural items, making the total provision£336,319.
£336,299.
£334,242.

page 734

NAVALVICTUALLING OPERATIONS

Senator FOLL:
UAP

– Ishallbringthe matter under the notice of the Minister for Supply and Development.

page 735

QUESTION

AUSTRALIAN BROADCASTING COMMISSION

Overseas Artists - A.B.C. Weekly

Senator McBRIDE:
UAP

– On Tuesday, the 23rd April, Senator Lamp asked the Minister representing the PostmasterGeneral the following questions, upon notice-

How many artists from overseas have been engaged by the Australian Broadcasting Commission since the 1st January last?
What are their names, and nationality?
What is the duration of their contract’s?

The following details are now supplied for the information of the honorable senator : -

Eighteen. 2 and 3.-

The following artists came to Australia of their own accord and have been engaged by the commission : -

On Tuesday, the 23rd April, Senator E. £. Johnston asked the following questions of the Minister representing the Postmaster-General, upon notice -

What has been the cost to date of the establishment of the Australian Broadcasting Commission Journal?
What has been the profit or loss on the journal to date?

The PostmasterGeneral has now supplied the following answer: -

It is not considered desirable to disclose the business details of this undertaking of the Australian Broadcasting Commission.

page 736

QUESTION

WAR FINANCE

Senator McBRIDE:
UAP

– On the 23rd April, Senator Darcey asked the Minister representing the Prime Minister the following questions, upon notice -

Would the Government consider issuing interest-bearing bonds to taxpayers who are culled upon to bear the new. war taxation, instead of selling bonds to the banks as at present?
Has this course been suggested in England?
Is it a fact that of the three methods at present used to raise money for war purposes this method is by far the most equitable i

The following answers to the honorable senator’s questions have now been furnished : -

The views of the Government on the provision of funds for the current and next financial year are as set out in the Treasurer’s financial statement of the 2nd May, 1940.
Not so far as the Government is aware.
See answer to No. 1.

On the 23 rd April Senator Darcey asked the Minister representing the Treasurer, upon notice -

What was the amount allotted to and subscribed by the private banksin the last Government loan?
Is it a fact that the Government is ignoring the finding of the Royal Commission on Banking and Finance, in paragraph 504, to the effectthat the Commonwealth Bankcan issue interest-free money to the Government?
Is it the intention of the Government to bring the report of this royal commission before Parliament for discussion during the present session?
Was there any arrangement between the wheat-growers and the Government, that wheat payments should not bo forwarded to the growers direct, but that the growers should be asked to sign a document that these payments were to be placed to their credit in a specified bank?
What rate of interest is the. Government paying on its issue of treasury-bills, and what is the total amount of treasury-bills held by the Australian banks?

The Treasurer has supplied the following answers: -

No amounts were allotted for subscription by the private banks, which made voluntary contributions to the loan. It is not the practice to publish the amount subscribed by any institution or person without the consent of the subscriber. As no permission has been given in this instance, the information cannot be supplied.
No. The Government is fully aware of the finding of the commission in this paragraph as well as all other findings, in the light of which paragraph 504 should be read.
No.
There was no arrangement between the Government and the growers as to the method of paying advances on wheat acquired. These payments were made by the Australian Wheat Board. When wheat was delivered to a licensed receiver growers signed an application form for payment of compensation and on these forms they nominated a bank to which the amount should be paid to their credit.
One and three-quarter per cent. From the 1st May, the rate will be11/2 per cent. Total amount of bills held by the banks in Australia on the 18th April. 1940, was £48,523.000.

page 737

BEQUEST TOTHE SENATE

The PRESIDENT (Senator the Hon. J. B. Hayes). - I have received the following letter from the Trustees Executors and Agency Company Limited, Melbourne: -

Dear Sir,

ESTATEOFTHELATEG. T.ALLEN.

We write to advise that this company is the executor appointed under the will of George Thomas Allen, late of “Harrold “, 11 Selborneroad, Kew, Victoria, retired public servant, who died on the 20th ultimo.

The following is an extract from the will:-

I bequeath to the President of the Senate, if he is willing to accept it, the occasional table which was used by Her Royal Highness the Duchess of York to hold the instrument by which Her Royal Highness cabled to His Majesty the King that the Commonwealth Parliament had been officially opened.

The necessary steps are now being taken to obtain a grant of probate and when the legal formalities have been complied with we shall further communicate with you. In the meantime we shah be pleased to receive your advice as to whether you, on behalf of the Senate, arc prepared to accept the bequest.

Your faithfully, (Signed) ‘

Chief Trust Officer.

With the concurrence of honorable senators, I shall reply expressing appreciation of this generous gift, and accepting it on behalf of the Senate.

Honorable Senators. - Hear, hear!

page 737

QUESTION

SALE OF CANADIAN WHEAT TO GREAT BRITAIN

Senator CLOTHIER:
WESTERN AUSTRALIA

asked the Minister representing the Minister for Commerce, uponnotice-

What quantity of wheat has Canada sold to Great Britain since the beginning of the war ?
Will the Minister ascertain the price paid (in sterling) for same?

Senator McBRIDE:
UAP

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

Thequantity of wheat sold by Canada to Great Britain since the war has not been disclosed officially, but from unofficial sources it has been ascertained that the quantity exceeds 60,000,000 bushels.
The terms and conditions of the sale of wheat by Canada to the United Kingdom have not been made public nor have they been disclosed to the Commonwealth Government. It is not considered desirable, therefore, that the Commonwealth Government should institute inquiries regarding prices or other details of the transactions.

page 737

QUESTION

DEFENCE EXPENDITURE IN WESTERN AUSTRALIA

Business Administration Committee

Senator CLOTHIER:

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

Can the Minister give any information regarding the proposed advisory board to be set up in Perth to investigate the lines on which Western Australia is able to assist in meeting requirements for war supplies? ( Vide Perth Sunday Times, the 21st April, 1940.)
What functions is it proposed to confer on thisboard ?
When is it likely that this board will be constituted?
What is the proposed constitution of this board?

Senator FOLL:
UAP

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

Nothing is known of the formation of an advisory board with the functions indicated by the honorable senator. It is proposed, however, to appoint a business administration committee in Western Australia, provision for which is made in the National Security (Board ofBusi- ness Administration) Regulations, and it is thought that the honorable senator’s question may refer to such body.
The functions of a State business administration committee are -
1. To review expenditure by local defence authorities and to report thereon to the Board of Business Administration.
2. To exercise on behalf of the Board of Business Administration such powers as may be delegated to the committee; and
3. To carry out such investigations and inspections and to submit such reports as may be required by the Board of Business Administration.

The powers of the Board of Business Administration that may be delegated are set out in paragraph 9 of the National Security ( Board of Business Administration) Regulations, which are contained in Statutory Rules 1939, No. 182. 3 and 4. The State Business Administration Committee will consist of three members, whose names will be announced at an early date.

In the north-eastern provinces of Holland, the Germans have been able to make considerable advances, as these areas do not lend themselves readily to defence, and are outside the main Dutch strategic zones. The enemy has, however, been delayed by Dutch troops falling back in good order on defensive positions, and by the destruction of bridges.

In central Holland, despite German advances across the Ysel and Maas Rivers, Dutch forces are maintaining stubborn resistance against the enemy in a number of places.

In the south, the Germans have overrun that part of the province of Limburg which separates northern Belgium -.from Germany. In Brabant, however, strong French detachments have advanced to the aid of the Dutch, and are helping them to hold the Germans. ‘ ‘

In Belgium, the German “forces advancing through Maastricht, in Dutch Limburg, have advanced on either -side of Liege, but have probably suffered heavy losses from the forts in front of that-city. These forced have succeeded, however, in crossing the defensive line of the Albert Canal, which runs across the northeastern corner of - the country, and the position here is causing anxiety. British and French units are helping to cover a Belgian withdrawal to prepared positions.

In Southern Belgium, the Germans who passed through Luxemburg, which was overrun on the first day of the invasion, have made contact with Allied troops at Neufchateau in the Belgian Ardennes. Fierce fighting has been- reported, and the German advance is still continuing.

Aerial activity in tins new campaign has been intense. The Germans have launched hundreds of bombers over the Low Countries and north-eastern France, and while these have been in a large measure checked by Allied fighters, they continue to inflict considerable damage on towns’ and communications, in an effort to disorganize- the mobilization of the defending armies. The Allies, too, ba.ve bombed -German troop concentrations and mechanized columns advancing in the Luxemburg area, and in Germany between the Dutch frontier and the Rhine.

It will he seen from -‘this account that the German forces now have ‘before them a very different proposition from their lightning campaign in Norway. A courageous- Dutch and Belgian resistance was put into motion ‘immediately ‘the attack opened, and the ‘French and British forces now. moving up in support, both through Belgium and- from the Dutch coast. are acting according to a’ plan long prepared to meet exactly ‘ the present d .’iii ger!. I would conclude with a note of warning against any undue optimism. Even though the full German strength Available has not yet been thrown ‘into the scale, operations so far have disclosed a formidable menace .to the Allied position in the west, and ‘every effort will be needed to avert it.

page 739

FINANCIAL STATEMENT 194Q-41

Senator McBRIDE:
South AustraliaAssistant Minister for Commerce · UAP

- by leave - In .submitting a. financial statement before the close of the-. current financial year, it is the desire of the Government ; to- make appropriate a,nd timely adjustments in the organization. of our. whole economy for war purposes, and;, to let the public know in advance, -what their obligations .-for next .year .will.. be, so. that individual financial .arrangements. can. t>e adapted accordingly….. .

The Government’s decision in November last to postpone full war-time taxation until our internal economic position had improved has been justified by results. Employment has improved monthly, and our (banking system is now in a strong liquid position. Interest rates are substantially lower. The Government is satisfied that the time has come to shift the emphasis in the financial ‘programme away from borrowing from the hanking system, and to rely mainly on taxation and borrowing from the public.

Budget 1939-40

In the original September budget, which was based on estimates prepared in peace-time, customs and excise revenue, was estimated at £48,000,000. This was reduced in the November proposals to £45,000,000. After a close review, it is now estimated that’ customs and excise revenue will yield £52,000,000, or an increase of £7,000,000. Other items of the budget in 1939-40. are expected to result-in a net improvement of £1,000,000. Consequently, there will ‘be available £8,000,000 more for war purposes out of this year’s revenue.

Additional estimates will be’ brought down at an early date for a further appropriation for war expenditure - in the current year. “

Budget Outlook FOR .1940-41.

Customs and excise revenue for 1940-41 is estimated at £46,000,000. ‘ . ‘

After allowing on the one hand for additional’ una voidable commitments, including invalid’ and old-age pensions and war pensions, and, on the other hand, for certain savings of controllable items of expenditure and for normal growth of revenue, the maximum amount that can he provided for .defence and war expenditure on the basis of existing rates of taxation is £16,000,000.

Wah Expenditure

On the basis of our present commitments, the expenditure in Australia alone for the current year “is estimated at £46,000,000 and ‘ for next year at £79,000,000, or a total of £125,000,000.

The total already provided or in sight to meet the -.estimated expenditure of £46,000,000 this year is £39:000.000 including some, balances .pf loan and trust moneys brought forward, and the unexpected windfall of £8,000,000 from the budget. Therefore, the balance to be raised to meet expenditure in Australia this year is £7,000,000.

The war expenditure and the finance required between now and the end of the next financial year may be put in the following form: -

For the two.yeafs-1939-4’0 and 1940-41 the overseas expenditure cans? be stated at a minimum of. £35,000,000. As provision for such expenditure, the Government raised in London last June a defence loan of £6,000,000 sterling. A temporary arrangement has been made with the British Government to make finance available by way of loan to meet the balance of our overseas war expenditure to the end of December, 1940. These loans will bear interest at the effective rate which the British Government itself is paying for loans of similar maturity and similar amortization, and the interest rate will- be low.

Proposals fob War Finance.

The policy of the Government is to find he amount of £70,000,000 for war expenditure in Australia almost entirely by borrowing the savings of the community and by taxation. After full consideration by the Government, the pro- posals now put forward for finance from these two sources are -

Taxation Proposals

The estimated additional revenue to be obtained next year by the Government’s proposals may be summarized thus : -

lt will be seen that the amount of £20,000,000 is made up of - indirect taxation, £10,300,000; and direct taxation. £9,700,000.

Wak-time Company Tax.

It is proposed that an additional tax in the f form of a war-time company tax shall be imposed in respect, of companies earning more than 8 per een%. bli2 capital employed. The tax will be a graduated one, commencing at 4 per cent, and increasing to a maximum of 60 per cent. The first 1 per cent, of profits in excess of 8 per cent, on capital employed will be taxed at 4 per cent. ; that portion of the profits be1 tween 9 per cent, and 10 per cent, will be subject to a tax of 8 per cent.; that portion of profits between 10 per cent and 11 per cent, will be “Subject to a tax of 12 per cent., and so on. The maximum rate of 60 per cent, will apply to that portion of the total profits in excess of 22 per cent. ; - .

It is estimated that this tax will yield an additional annual revenue of £5,300,000, of which £4,250,000 will be collected in 1940-41.

The proposed legislation will make liberal provision for companies employing small amounts of capital or deriving small amounts of taxable profits.

TJ n DISTRIBUTED PROFITS Tax.

Another additional form of war-time company taxation that the Government proposes to introduce, is an undistributed profits tax. This will be a tax of ls. in the £1 on the undistributed taxable income, after allowing an exemption of 25 per cent, of the distributable income. In calculating the taxable amount, allowance will necessarily be made for all Com-> monwealth taxes paid - including the proposed war-time company tax - as well as State taxes paid. The estimated amount of the yield from the undistributed profits tax is £575,000, of which £450,000 should be collected for the financial year 1940-41.

It is not proposed that any rebate shall be allowed in respect of dividends which may at a later date be paid from such undistributed profits..

The. proposed war-time company “tax and the undistributed profits tax will not apply to the gold-mining industry.

Income Tax - Individuals

It is proposed to increase the rates of income tax on individuals in such a manner as will produce an additional collection of £3,000,000 during the next financial year. To produce this result the yield of taxation for a full year must be increased by approximately £4,000,000. For various reasons it is not physically possible -to assess and collect within one financial year the whole pf the income tax payable in respect of’ that financial year. The present rates of tax give about £8,200,000 for the full assessment in 1940-41, so that the yield of the tax will be increased by about 50 per cent, by these proposals.

Land Tax

Present land tax rates will be doubled to yield an additional £1,500,000 in 194.0-41. The statutory exemption of £5,000 will still remain for residents, but the rate..pf tax will then commence at Id, /.. the. £1,. increasing to a maximum of 9d: in the £r for taxable unimproved values in excess of £75,000.

Estate Duty

It is proposed to increase the rates of estate duty, so as to produce an additional revenue of £500,000 during 1940-41. In a full year these rates will produce an additional yield of £850,000. Although the proposed rates of duty have been increased in the middle and higher grades of taxable value, provision has been made for remitting totally- all duty in respect of estates of £2,000 and under passing to widows and children. In respect of the estates of members of the various defence forces who die on active service, provision will be incorporated in the legislation that all such estates of a taxable value of less than £5,000 shall be totally exempt.

Sales Tax

It is proposed to increase the present rate of sales tax immediately from 6 per cent, to 8^ per cent. The increased rate of tax will produce an additional revenue of £5,000,000 in 1940-41.

CUSTOMS and excise.

The tariff proposals provide for an immediate increase by 3d. a gallon of customs and excise duties on petrol, benzol and similar spirit, and this is estimated to yield an additional revenue of £3,300,000 per annum on the basis of a reduced consumption during 1940-41!. A customs special war duty represents a superimposition of 10 per cent, of the duty, including primage, otherwise payable, but this newduty will not apply to petrol. It is expected to yield £2,000,000- during the coining financial year. - .. Conclusion. “These”- financial proposals- cover only commitments actually undertaken to date, and do not provide for expenditure to be met overseas. They surpass in magnitude anything of a similar kind ever submitted to an Australian Parliament, but in that respect are merely indicative of the seale of our national war undertaking. I feel sure, however, that it will be the desire of every citizen to accept his share of the task which lies ahead to achieve victory. I lay on the table th.o following paper :–

Financial Statement for year 1940-41, and move -

That the paper be printed.

Debate (on motion by Senator Collings) adjourned.

page 742

QUESTION

GOVERNOR-GENERAL’S SPEECH

Debate resumed from the 23rd April, 1940 (vide page 374) on motion by Senator Wilson -

Thatthe following Address-in-Reply to His Excellency the Governor-General’s Speech be agreed to: -

MAYITPLEASEYOUR excellency: ‘

We, the Senate of the Commonwealth of Australia in Parliament assembled, desire to express our loyalty to our Most Gracious Sovereign and tothank Your Excellency for the Speech which you have been pleased to address to Parliament.

Senator SHEEHAN:
Victoria

– The two statements that havebeen made to honorable senators this afternoon indicate that a considerable change has occurred in the world situation since, the Senate last met.The statement readby the Assistant Minister for Commerce (Senator McBride) will be. discussed at a future date. All I shall say about.it at the moment is that it indicates the terrible price that we shall have to pay for the present worldmadness. The Minister Assisting the Minister for Repatriation (Senator Collett) in referring to the war activities in Europe, drew attention to a significant point. At the conclusion of his remarks he said, in effect, that we should” not take things for granted, or believethatallwas well. I drawattention to that remark because, while the conflictwas being waged some weeks ago in Norway reports alleged to beauthentic were circulated to the people of Australia ; these proved tobefalse, and they misled the people as to what was really happening in Scandinavia. I admitthatthe people of Great Britain also had false information conveyed to them…When the startling information was disclosed that things were not as they appeared to be in Norway violent repercussion, occurred. We have, in the last few days, witnessed the downfall of the Chamberlain Government in Great Britain. Actually we had been hoping that internal conditions in Germany would eventually, result in the sweeping away of the German Government; it is. notable, therefore, that the change of government occurred first’ in Great Britain. We may still rejoicein the fact, however, that though theper- sonnel of the British Government has been altered, the peoples, of the British

Commonwealth of Nations, including the people of Great Britain, still maintain the democratic form of government, It is well that at the seat of the Empire the elected representatives of the people have been able to assemble in their places in Parliamentto discuss the nation’s affairs, even though such discussion involved a change of government. I direct attention to the fact that though we are engaged in a war for the preservation of democracy and all that that means, the Commonwealth Parliament is not functioning with the same flexibility as the mother of parliaments.

Senator Collett:

– Why not ?.

Senator SHEEHAN:

-Because this Parliament has ‘been kept in recess for long periods, ‘ and the representatives elected by the people havenotbeen given the opportunity to express their views in Parliament. I have said on. previous occasions, thoughperhapsnot in this chamber,that it isa short, step to a dictatorship. I fear that, through the ignoring of our parliamentary institutions, it is possible that the form of government which we so abhor in the enemy country, may become the form of government . in Australia.

Senator Collett:

– The honorable senator is putting up an old bogy;

Senator SHEEHAN:

– Ifhonorable gentlemen opposite would take the trouble to investigate the position they would soon discover that it is not a bogy. How often do honorable senators opposite find that the ordinary man in the street, and even others who maybe thought to have some higher degree . of knowledge, . are not at all conversant with our forms of government? Thousands, ofpeople throughout the Commonwealth do not know who theirparliamentary representatives are, nor do they know the difference between the House, of Representatives andthe Senate.

– Exactly, but when an appeal is made for a united nation our thoughts and our actions must be directed in the way I have suggested. We must inspire the people of this country to rise to greater heights. Recently the Prime Minister (Mr. Menzies) appealed to the youth of this country. It is to the youth to whom we must appeal, and if we desire our democratic institutions to survive we must inspire youth to assist to maintain those conditions which we now enjoy. If we should fail to do so the drift may be in the wrong direction.

Senator Herbert Hays:

– Does the honorable senator suggest that we are being threatened from within?

Senator SHEEHAN:

– Every nation is threatened from within by conservatives such as the honorable senator. We are threatened from within by those persons who influence governments in their own interests and who refuse to entertain new ideas. For centuries people of this class always retarded progress. They are to be found in this chamber, and they indicate their presence by their interjections. If we desire the youth of this country to preserve our democratic institutions, obviously we must direct our activities in the direction that I have suggested. What is the use of making an appeal to the youth of Australia to support the present social system when thousands of boys do not know where to obtain employment? The fathers and. mothers of these Young neon le are faced with a great problem - the placing of. their sons or daughters in decent positions. After spending a great deal of money in educating their children to a standard which, they feel, is necessary in order to fit them for the battle of life, too many of them discover that employment is not available. In these circumstances i3 it not likely that these young people will have bred in them - a spirit of rebellion, and will not many of thom- consider chat our present democratic system of government, has outlived its usefulness?

A great deal has been said in this chamber and in the House of Representatives about the need for stamping out communism from our midst. But what breeds communism? What are the reasons for its existence in this country? If the peoples of older nations in which communism has flourished, or at least taken root, had not suffered want owing to the failure of their governments to provide them with the opportunity to live decently they would not have turned to this political creed. If, for instance, the Czarist regime in Russia had dealt fairly with the Russian people, there would not have been the bloody revolution in 1917. The same may be said of other countries in which old forms of government have had to make way for newer systems.

Before we can give effect to the sentiments expressed in the Governor-General’s Speech we must bring about a state of affairs in which we can appeal with confidence to the people for an effort for victory in this war, so that the democratic institutions which we value may remain. We must prove to them . that Australia is a country worth defending. We must ensure also that when this conflict is over there will arise in Australia new social conditions under -which the people will have a full supply of the necessaries of life. They must not he east ‘back as they were at the end of the last war. They must not bc forced to submit to tribulations like those they suffered during the depression, when so much of what, they had struggled to obtain was taken from them. That spectre must not haunt them in the future. I hope that the Government will guide the destiny of Australia, so that all the good things which we desire for our people shall readily be made available to them.

Senator BRAND:
Victoria

.- Recent events on the other side of the world have prompted me to speak in support of the motion now before the Senate. On Friday last, after eight months of comparative stagnation, the war suddenly became one of action. The Allies are at last at grips with the enemy. Confidence in the final triumph over Hitlerism must not be associated with an early and easy victory. The struggle is just beginning. Double-column headlines in our daily press announcing some minor or local success must not be taken too seriously. Often what is gained to-day is lost to-morrow. Ill-balanced optimism should bo avoided, but there is no need far pessimism. Extravagantly worded headlines create a wrong impression and magnify a small gain out. of all proportion to the stupendous task before the Allied forces. There is no rosy path to Berlin, a city which we should have entered in November, 1918, and which must be occupied if the German, people are to be convinced of the folly of nazi-ism.

There will be reverses, as there were ‘ iii the Great War. History has shown that a set-back is an incentive to. the Briton to redouble his efforts. That will be so again. But a big Allied reverse in the present struggle will have more violent repercussions than any set-back in the last war. Nobody can accurately forecast how such repercussions will affect A ustralia. The situation is such that the time has passed for pin-pricking criticisms of the Government.

The average citizen does not really know what the Government has accomplished since war was declared in September last. There may be some items on the debit side of the ledger, but there is a far greater number on the credit side. Honorable senators opposite rightly claim to be the “ watch-dogs “ of the country’s business. So are we on this side of the chamber, but we do not bark at anything and everything. “Many of my colleagues do as I do - tell Ministers where phases of the Government’s war policy need closer attention.

Because money is plentiful for our war services, there is .a tendency to extravagance. Sometimes it is forced upon the persons concerned because of the noncooperation and selfishness of others, and because of the tendency to make profits out of this unfortunate war. I refer to the high - rents paid to wealthy landowners for housing the head-quarters of our- fighting services in Melbourne. The head-quarters staffs were forced out of their usual location at Victoria Barrack? in order to make way for the army of civilian clerks and boards created by war emergency. Accommodation is, of course, necessary for this administrative personnel. Victoria Barracks, Melbourne, is the nerve-centre of Australia’s war effort. From there orders are sent directly or indirectly to every sea,, air, and land unit engaged in the defence of this Commonwealth. It was inevitable that accommodation should be found elsewhere, without delay, for the head-quarters of the Australian Imperial Force, the Second Cavalry Division, and the Third and Fourth Divisions now almost at war strength. A house of four or six rooms would be far too small for any one of those divisions, which are now housed in expensive dwellings in an expensive suburb of Melbourne. The rents are exceptionally high. A division in France usually had its head-quarters in a cluster of huts. Honorable senators may ask why we cannot do the same here; there is plenty of park land. The answer is that municipal councils are loath to give up even a corner of park land for such a wartime service. All councillors are not so unpatriotic, but others do not seem to realize that a war is in progress. The

Government should have power to acquire such space, even if a local cricket or football club be inconvenienced.

Senator Sheehan:

– Would the Melbourne cricket ground be suitable?

Senator BRAND:

– That would be a good place. The whole of these four head-quarters could have been placed in Fawkner Park. Lacking power to do that/ there was no alternative but to take four big houses, at whatever rent was de*manded. It is.. not ‘too late even now to remove these head-quarters to certain park lands> to build inexpensive war-time huts, and-. to save the present excessive expenditure on rents. - .

Whilst discussing governmental expenditure, I urge the Ministers concerned to take ample steps to conserve petrol. From what I can gather there is considerable overlapping in the use of the motor transport allotted to Army and Air Force units. This overlapping became so serious on the western front during the Great War that drastic action had to be taken, and a system of “ pick-ups “ and “ set-downs “ instituted in each corps area. A chit giving authority to use the road was issued to motor transport drivers. If it were found that the reason for taking the road was unsatis-factory, or contravened the orders on the subject from a higher authority, the officer who issued the chit was severely dealt with. The result was a considerable saving of petrol and wear and tear of vehicles and roads. I do not suggest that joy-riding, in the full sense of the term, is indulged in, but, certainly, there is need for a system of central control between our capital cities and the various country camps. The roads used by units’ motor transport ought to be adequately policed by military personnel, in order to check reckless and careless driving. Far too many men are involved in fatal road accidents. The compensation paid must already have’ reached a very considerable sum.

My chief object in speaking to-day is to urge the Government, in view of the latest developments in Europe, to expedite the training of Australia’s quota for the Empire air scheme. If what some of my Air Force friends of the last Avar tell me is true, there is need for a general shake-up all round. The Minister ‘ for

– If a number of honorable senators opposite had their way, our population would be even less than it is to-day. I do not now reflect in any way upon the honorable senator who has just interjected. However, the policy of the Country party has been that our producers should sell on overseas markets at any old price. They- are not concerned that such a policy means low wages for the man on the land. The Scullin Government implemented a sound policy for the encouragement of secondary industries in Australia. With the object of building up the home market, it greatly curtailed imports. If succeeding governments had continued that policy our economic position to-day would be much sounder. The only suggestion the present Government can make for overcoming existing economic difficulties is that we should borrow overseas the money we require for defence. This is on all fours with the defence policy enunciated in Fisher’s day by predecessors of honorable senators opposite- borrow from

– That was one of the criticisms, and it illustrates very well the kind of thing that looms so large in the minds of members of the Opposition in this National Parliament. Because of the foolish purchase, or leasing, of a racehorse by a Minister, members of the

– He does not run all of these factories; his services are enlisted in an advisory capacity in relation to purchases. When he was asked to: show what he could do in his own factory, he saved the Government close on £6,000 on one particular contract. This is not an isolated instance of savings being made in private enterprise compared with government establishments. I object to honorable senators opposite levelling the accusation of .profiteering against private enterprise merely because they believe it to be a good party political draw-card. According to them, any person who makes a profit is a scoundrel. They fail to realize that out of the profits of the people come the whole of the advancement of the people and the employment with which they are provided. Profits do not remain in the pockets of those who make them, or. in banking institutions; they are sooner or later put into plant and machinery. The number of factory employees to-day, because of the national war effort, is greater than it has ever been previously in the history of Australia.

The only place where there is no employment is on the coal-fields, and the .unemployment there is of the miners’ own making. In this time of national crisis, when we are turning out munitions for the Imperial Government, when we are producing steel of all kinds, and air-raid shelters which are sent overseas, the whole of our defensive operations are threatened by the coal-miners. Honorable senators opposite, instead of standing solidly behind : the Government, openly encourage the coalminers to throw thousands of persons out of employment and to hold up the national defence effort. If they were sincere and genuine in the statements they have made, they would have stood wholeheartedly behind the Government when trouble first threatened three months ago. They would have said to the coal-miners, “You cannot do this in a time like the present “, and they would have been listened to by the men. But they chose to sit back and not utter a word of blame against the attack by the coal-miners on the safety of the people. The reason behind the coal strike is so absurd that one wonders that honorable senators who claim to represent the people should lend it any support. The men who actually work the coal, representing 85 per cent, of the total number employed in the mines, already had a 40-hour week from bank to bank. Only 15 per cent, of the surface men, such as firemen and others, were denied it, and even they’ received higher wages for fewer hours’ work than the ordinary men in any other industry doing the same class of work under similar conditions. Yet the whole of the mines were thrown idle in an attempt to blackmail the Australian nation, with the result that the manufacture of munitions is being hampered, thousands of men have been thrown out of employment, and the whole of the domestic arrangements of the civil population have been upset. Not one leader in the ranks of honorable senators opposite has the pluck to tell the miners that they are wrong.

Senator Collings:

– That is not true.

Senator LECKIE:

– Behind the scenes certain Labour leaders have said to the nien, “ For God’s sake, save our .political future by going back and doing some work”. In the initial stage- one strong word by the leaders of the Labour party would have been sufficient to prevent the taking of the extreme step of- striking. The great body of the coal-miners are as loyal at heart as is any other section of the community. The leaders of the Labour party were not game to stand up to the opinions they” profess to hold.

Senator Ashley:

Senator LECKIE:

– It is a good deal after zero hour now. Such action should have been taken weeks ago. Honorable senators opposite assert- that they ;are standing wholeheartedly behind the Government in its effort to win the war, not only for Australia, but also for the Empire, for liberty, and for democracy. but on the first occasion when they were invited to take some definite action they failed badly.

– Senator Fraser will have to be much more specific in his statements than he is generally if he expects to prove his case.

A great outcry has been made during the coal strike against certain judges of the Arbitration Court who, it is alleged, have been unjust to the coal-miners. A couple of years ago Chief Judge Beeby was lauded to the skies because he had given some decisions favorable to the workers; now he is being consigned to hell.

Senator Collings:

– We have never said anything of the kind about him.

Senator LECKIE:

– Judge DrakeBrockman, only a couple of years ago, was accused of being the employers’ judge, but now he is being lauded to the skies because he gave the coal-miners some benefits that he had no authority to give them. Certain provisions of his a ward could only properly be made by a bench of three judges. Honorable senators opposite, and their supporters outside, while attacking the judges of the Arbitration Court, desire us to believe that they support the principle of arbitration. Their contentions in certain regards are intensely humourous, but 1 cannot see how they can expect to reconcile the contradictions to tho satisfaction of tho public. The employers are expected to abide by the awards of the Arbitration Court and, apart from a few isolated exceptions, they do so; but the employees, it seems, must be free to go their own way. Some of them are saying, in effect, “ We shall not accept the court’s award. We shall appeal to Hitlerism. We shall blackmail the business community, and hold it to ransom, because the Arbitration Court has not given us what we want”. It has been said that a former Prime Minister (Mr. Bruce) desired to abolish industrial arbitration ; but that is not the true position. The fact is that there is a great deal of overlapping under the Commonwealth and State arbitration systems. Mr. Bruce, being sick of this overlapping and the consequential legal entanglements in attempting to decide whether a dispute existed or not, said: “Let us clarify the position. Let the people say whether the Commonwealth or the States shall have full . authority in the field of industrial arbitration “. “When the people were consulted they indicated clearly that they were not favorable to Commonwealth evacuation of the field of industrial arbitration: Honorable senators opposite say that they are favorable to arbitration and the adoption of constitutional methods for the redress of their grievances, but now that they have an oppor tunity to adhere to their declared views on this subject they are curiously inactive.

Senator Wilson:

– We want the honorable senator’s help.

Senator FRASER:

– I am always pre-, pared to help in a practical way, but during this debate honorable senators opposite, with only one or two exceptions, have maintained a constant barrage against the Opposition, and have endeavoured to associate it with communism, simply because ‘ they desire to win the next election.

Senator Leckie referred to the young men of this nation who had volunteered for service overseas, and went on to say that the contribution made by the wealthy people of this country was equal to that of the wage-earning class. I interjected that it was not so. However, that is a matter that could well be left alone now. I admire men who, of their own free will, offer themselves in the service of their country. It is unfortunate that Senator Leckie should endeavour to place class against class by suggesting that those with whom he is associated bear a much heavier proportion of taxes than any other section of the community. Perhaps tho honorable senator is not aware that 1,000 persons in Australia share £8,000,000 annually, while there are 1,500,000 whose wages do not exceed £5 weekly. Unfortunately, thousands who do not receive any wages at all have to depend on sustenance from the State in order to live. If Senator Leckie studies these figures, he will find who is making the greatest sacrifice.

As suggested by Senator Brand, nothing can be gained by indulging in pin-pricking criticisms of the Government, and any observations which I have to make will, be of a constructive rather than a destructive character. There is no necessity for me to say I am not a Communist, and that I have no sympathies with the Communist movement. During the many years I have been associated with the Labour movement I have’ taken an active part in its industrial work. Honorable senators opposite should not make statements which they know they cannot substantiate. For instance, some have said that every member of the Labour party associates with Communists.

Senator McBride:

– Who said that?

Senator FRASER:

—Senator Dein and other honorable senators opposite have made inaccurate statements concerning communism, and of other subjects. For instance, Senator Dein informed the Senate that the “ hands off Russia “ resolution was expunged from the records of the Labour party by only two votes; but that is wrong. When the New South Wales conference carried that resolution it knew that it would not be endorsed by the federal executive which is representative of all States. The federal executive decided unanimously that the resolution should be expunged from the records of the New South Wales branch of the Australian Labour party. It was the defence policy of the Australian Labour party and not the resolution referred to by Senator Dein which, was carried by the Australasian Council of Trade Unions by only two. votes.

Senator Dein:

– It was all in the one motion.

Senator FRASER:

– Senator Dein does not know what was involved. The Labour party in Western Australia is part of the Australian Labour party, but the West Australian branch of the Australian Labour party is not affiliated with the Australasian Council of Trade Unions. Senator Dein also said that the secretary of the Miners Federation, Mr. Orr, is reported to have told the Prime Minister that he is a Communist, that he believes in displacing him and that he believes in the abolition of parliaments which govern Australia. I am opposed to Communists’ principles, but I would remind honorable senators opposite that two cases involving the activities of the Friends of the Soviet Union and Communists which were brought before the High Court by the Commonwealth Government were subsequently withdrawn at the- request of the Commonwealth. The Assistant Minister (Senator Collett), who represents Western Australia, knows that at the last general elections in that State the United Australia party stated on its “How to Vote “ cards that the second preferences of the supporters- of that party should he given, not to the Labour candidates, but to the Communist candidates. If communism is the menace which the Government says it is, the responsibility of suppressing it rests with the Government which has under our National Security Act all the power it requires to do so. The Opposition is powerless in that respect. Senator Wilson, who referred at length to communism, should ask the Government to deal with the Communist members of the profession of which he is a member, and also with those who belong to the medical profession. In the Sydney Morning Herald, the following paragraph appeared -

page 759

QUESTION

DRUMMOND KEEPS SILENCE

The Minister for Education, Mr. Drummond, last night flatly declined to comment on the result of an inquiry into charges made some months ago by Father Forrest, M.S.C. “ I have absolutely nothing to say,” Mr. Drummond declared.

Father Forrest had said that the principles of atheism and communism were being disseminated by lecturers at the Sydney Teachers’ Training College.

Mr. Drummond made no reply when asked whether action had been taken against individuals at the college.

It has been well said that the price of liberty is eternal vigilance. This is emphasized in connexion with war-time censorship in Australia by means of which various organizations, without a vestige of Communist tendencies, have been deprived of the right of free speech. Many electors in Western Australia have asked me to protest against the unfair method of applying censorship. None of them has association with any of the foreigners who are said to come to this country in order to cause disruption. I have in my hand a copy of a letter which was sent to the Acting Minister for Information (Sir Henry Gullett) by the general secretary of the Australian Natives Association. It reads -

The Australian Natives Association has ever been loyal to our democratic principles and institutions, and the recent action of the Government in suppressing the right of . free expression of thought by increasing the severity of the censorship regulations is viewed by my board with deep concern. The right to free speech and free expression of thought through thepress we feel, is the main, principle underlying democracy, and any attempt to restrict this privilege makes us wonder where we are heading. Has not our Prime Minister on many occasions stated that he does not seek, however long the conflict, to restrict the right to free speech- and criticism? Is not the war itself being fought to retain this very right that is now being partly taken from us by the recent promulgation? The action taken will prevent the full presentation of views on the conduct of the war. Censorship1 shall presumably be of comment or criticism made by persons regarding the prosecution of the, war: and who shall be the judge of whethera criticism is in the best interests of the country or not? My board feels that the regulations, if permitted to continue, will make’ of our democracy a laughing stock, and suggests that urgent and deep consideration be immediately given the matter with the object of restoring the rights that every British subject is fighting for.

The following points effectively coverthe views of my board: -

It denies one section of the Australian public (not by any means only the Communists) the right offree speech.

It gives a departmental chief power by regulation to declare any newspaper a “Communist newspaper ‘”. without adducing a shred of evidence in proof, and thereby to subject it to the new restrictions.

. Under this regulation already, several newspapers, which cannot without gross exaggeration be called “ Communist “, have been subjected to the restrictions.

The subjects listed as banned for publication are not necessarily subjects which, if mentioned, would beof value to the enemy, but which may be inconvenient to the Government.

Other newspapers which do not come under the regulations will bo allowed to publish facts and views relating to these matters. This means that public opinion is to be formed by a governmental selection of facts and views.

As I have received many other similar complaints, I ask the Government to review its censorship regulations. The statements contained in the letter which I have just read are correct. One ofthe valued privileges for which we are fighting to-day, is the right of free speech. I agree that some censorship of publications and public statements is necessary in war-time; but I believe that the restrictions now imposed are too severe, and T. fear that this system may be maintained even when the war is ended. Unfair discrimination is shown in that some newspapers are allowed to publish articles on certain subjects, whereas other newspapers are not permitted to mention them.

The training of aerial gunners isan important aspect of Australian defence measures. We all believe that this country should be well equipped with fighting planes and I am pleased that the Government has decided to increase our air strength. It is, however, regrettable that certain weaknesses have been disclosed in the training of aerial gunners. Although eight months lave elapsed since the outbreak of the war, it was not until a few weeks ago that an aerial gunnery instructor was sent to the Pearce Aerodrome iu Western Australia. Air Force pilots must undergo rigid tests before they are passed as fit for active service. Since aeroplanes travel at speeds of 200 and ‘500 miles an hour, tho efficiency of aerial gunners is of particular importance to the safety of both pilots and aeroplanes. Therefore, their training should be as comprehensive as that of pilots.

In order to conserve overseas exchange the Government has, since the commencement of the war, imposed severe restrictions on imports to this country. We all recognize the necessity for these drastic measures, which bring in their train a certain amount of unemployment.

The Sydney Morning Herald, in its issue of the 23rd April, referring to the Government’s gold tax proposals, made the following statement: -

Ah amendment of the Gold Tax Act to exempt gold produced in low-grade mining enterprises from taxation may shortly lie introduced in the Federal Parliament.

Since the Leader of the Country party has become a member of the Cabinet, his views regarding the wheat industry appear to have totally changed. A merging of political thought has taken place, although we were formerly told by the Country party that this could not be accomplished. I say definitely that the responsibility of protecting the interests of the wheat-growers of this country rests upon the shoulders of the Government. The Leader of the Country party tells the farmers that it would be in their best interests to curtail wheat production, and to resort to other forms of production. If he were a true representative of the farmers, he would endeavour to evolve a plan for the benefit of the producers, instead of merely making suggestions, thereby hoping to free himself from all responsibility in the matter.

Senator McLeay:

– The honorable senator, in order to make- himself a good fellow, suggests that money should be advanced to the farmers free of interest.

Senator FRASER:

– If wheat production be as essential to the welfare of this country as the manufacture of munitions of war, why does the Government consider it necessary to restrict private firms, on whose premises defence annexes have been established, to a minimum return of 4 per cent, on their capital outlay? No plan has been evolved by t,he Government to ensure the stability of the wheat industry, and, as far as I can gather, no such plan will be formulated by it.

Senator McLeay:

– I hope that the honorable senator’s policy will not be given effect.

Senator FRASER:

– The Labour party has a policy which, if put into effect, would prove to be in the best interests of the people generally. If the

Government realizes the seriousness of the plight of the wheat-growers, it should submit a plan for th6 stabilization of the industry, even if a restriction of production were involved. The wheat-growers themselves have shown at their conferences, that they recognize the wisdom of such a restriction.

I am pleased to know that consideration has been given by the Government to the establishment of wool appraisement centres at Geraldton and Albany. In view of the statement by the Minister for Commerce (Mr. Archie Cameron) before he became a member of the Cabinet, I hope that he will take a stand in the Cabinet similar to that which lie took on the floor of this Parliament when he declared himself for a policy of decentralization. On the 22nd November last, he said- -

All parties in this House will agree that Australia is suffering greatly from the degree of centralization which has already taken place. I do not intend to be a consenting party- to the application during war-time of a policy, which, under the excuse of war conditions, will still further accentuate the evil of centralization in our capital cities. The honorable member for Forrest (Mr. Prowse) lias a perfect right to bc concerned about the future of the port of Albany, and the honorable member for Kalgoorlie (Mr. Green) about that of Geraldton.

I hope that the Minister will press the claims of those two ports.

Senator E B Johnston:

– We are fortunate in having the Leader of the Country -party in a position. in which he can do that.

Senator FRASER:

– I trust that the honorable senator will not be disappointed. I should like to hear his views regarding the statement by the Minister concerning the wheat industry. The Minister said that the primary producers are satisfied, but, in my opinion, they are npt.. . He also declared that the woolgrowers have had a fair deal. But those growers do not think so.

Senator McBride:

– The majority of them do.

Senator FRASER:

– Most of them do not. The following statement appeared in .a Melbourne newspaper of the 27th March last : - -

Dissatisfaction with tlie price at which wool of the 1939-40 clip has been sold to the British Government, and with anomalies in wool appraisements, -was expressed at the . first meeting of- the Australian Wool Producers’ Federation held in Melbourne to-day. The meeting declared that the price of 10.75d. (sterling) at which the 1939-40 Australian wool has been sold was inadequate to meet rapidly rising costs of production due to war conditions, and urged the necessity for a review of the prices for all future clips. It was declared that serious anomalies had occurred in connexion with the appraisement of wool, particularly in regard to early appraisements, where serious under-valuations were made.

The meeting recommended that a reexamination of such appraisements be made. It also requested that the average prices per lb. be published immediately each appraisement was completed, giving also the average appraised price for each State. The Commonwealth Government was requested to appoint a royal commission to inquire into the pro,duction costs of the wool industry.

In view of these facts, I cannot see eye to eye with Senator McBride. I have shown that substantial numbers of wheatgrowers do not agree with the Minister’s statement that the growers are satisfied with the present appraisement scheme. Apparently, the Minister could not resist the emoluments of office; but before he accepted office he fought the Government on these matters. Now he declares that the wheat and wool-growers have had a fair deal.

Honorable senators on this side will always be prepared to help the Government in its prosecution of the war. However, the Government can hardly expect us to agree with it upon every detail of its proposals. Criticism will be necessary, and we shall not hesitate to voice it. I can only hope that the Government will be prepared to accept our criticism in the spirit in which it is offered. The Government .deserves censure, for instance, for bringing troops from Western Australia to Ingleburn for military training, at a. cost of £22 a head. That was sheer waste of money, because every facility exists in Western Australia for the training of recruits. It was stated that these troops were brought to Ingleburn for brigade training. If such training cannot be given in Western Australia, recruits from that State will have an opportunity to obtain it on disembarkation overseas.

Senator Collett:

– That may not always be the case.

Senator FRASER:

– At any rate, it is the case at- present.

Widespread’ dissatisfaction has been voiced in Western Australia against the apple and pear acquisition scheme.

Senator Collett:

– In what part of the State?

Senator FRASER:

– Such dissatisfaction is apparent throughout the State as a whole. Traders who have taken years to build up an export trade are. now prohibited from exporting apples and pears except under licence.

Senator Collett:

– Let the honorable senator tell the whole of the story.

Senator FRASER:

– I shall do so. Here are the facts as I obtained them in an inquiry which I made as the result of the widespread dissatisfaction voiced against the scheme -

The State Committee constituted under the apple and pear acquisition scheme made the following appointments : -

Mr. C. H. Merry to be supervising secretary.

Mr. Merry is a public accountant, who is also secretary of the Fruit Shippers Association.

Mr. Cansdale as secretary. Mr. Cansdale is an employee of Westralian Farmers Limited, which is allied with Producers Markets and Mount Barker Co-operative. Westralian Farmers Limited is a very large co-operative concern covering all sections of commerce and ships fruit and vegetables to northwest ports, Darwin, and overseas.

Mr. Q. Lantzke, as assistant marketing officer.

Mr. Lantzke is a son of the chairman, Mr. F. W. Lantzke. and previously worked in bis father’s business.

A fruit assembly, committee was formed comprising the fruit shipping firms, to carry out the work of assembly in the country. The address of this committee is that of the supervising secretary, Mr. Merry, and the firms represented are - Paterson’s Limited, Westralian Farmers Limited, George Wills and Company (Burridge and Warren), and some smaller companies.

These firms were to be paid 1-Jd. or lid. a case for this work, and with at least 800,000 cases to be handled will receive £5,000 for their work. Export licences have also been limited to the firms mentioned, who are well represented on the committee, and also on the staff of same.

One of the first actions of the committee was to circularize all growers giving details of how to pack, etc. Growers were informed that the central packing sheds must be used as far as possible. These are owned by Paterson’s and Westralian Farmers Limited, who are well represented on the committee.

Growers were ordered not to put their name on the case, thereby losing all their goodwill, but packing houses such as Mount Barker Co-operative and Paterson’s had their name on the cases and Paterson’s had the apples wrapped in special paper with their name on it. When challenged, it was said that the prohibition only applied to growers.

One company, F. Emery Limited, has specialized in export of fruit and vegetables to the north-west ports and Darwin. In addition an attempt has been made to extend its operations to Singapore and Malay States, so far with success.

The Assistant Minister for Commerce (Senator McBride) ‘inspected this- firm’s methods when in Perth during last year and complimented it on its special packing arrangements. F. Emery Limited was refused an export licence for apples and pears because it exported only 64 cases last year. This firm is only young, and the ridiculous position is that it can export oranges, grapes, vegetables and salads, but cannot send apples or pears to its clients.

The company’s rival in this trade is Paterson’s Limited, which is represented on the committee. Emery recently wanted 25 cases of apples for a client in the north, and when he applied, to the committee he was supplied with apples, with Paterson’s label on the case and name on the papa on each apple. Surely a. good way of advertising to a rival’s client! If th, apples are the property of the Commonwealth, why should this company bo allowed to show ite name at all ?

– I am not saying anything against him personally; I mentioned him only to emphasize the fact, that other men, who served their country in the last war and who possess excellent qualifications, have been passed over .in the making of appointments, although the professed policy of this Government is preference to returned soldiers. Mr. W. J. Williams, who was formerly superintendent of the Sydney markets, has been appointed in charge of the naval subvictualling yard in Sydney. The position was not advertised, and no applications were called. There is in Perth a man, an ex-lieutenant-commander in the Navy, who has had experience in this class of work, but he was given no chance to apply for the position which he wa? eminently qualified to fill. In all of these matters, Western Australia seems consistently to be overlooked. When a call was made for technicians, not one was selected from Western Australia. When applications were called for air force trainees, ,-no address: :»* given in Perth.,to which’ applications could be pent. They” had all to be sent to Adelaide.

Senator Collett:

– The honorable senator knows that that was rectified. No mistake can be corrected until after it ha? been made.

SenatorFRASER. - It was not corrected until after the date upon which applications closed. I trust that the Government will pay some heed to the matters I have mentioned, and particularly to my request that wool appraisement centres he established at Albany and Geraldton.

Senator COOPER:
Queensland

– At the outset of my speech I would like to commend those responsible for the formation of the Coalition Government, representing members of the United Australia party and the Country party, that has been formed during the time that Parliament has been in recess. It is gratifying to note that the Prime Minister is now assured of a majority in both Houses of Parliament to assist in providing the maximum efficiency in Australia’s Avar effort. The addition of Country’ party members to the Cabinet will also give direct representation of the country interests affecting so many of the population of Australia. It is now sometime since the Governor-General delivered his Speech at the opening of this Parliament, and many changes have taken place since then. The greater part of the Speech dealt with matters arising out of the war, and in the interval since that Speech was delivered we, in common with the rest of the civilized world, have been astounded again and again at the ruthless audacity ofHerr Hitler and his Government. When we listened to His Excellency’s Speech, Denmark and Norway had been invaded, but now Holland and Belgium are fighting for their existence against German aggression, and already thousands of casualties have occurred. The difference between ourselves and Germany lies largely in this : Germany has accepted without reservation the doctrine that might is right. By a series of lightning strokes Germany has overcome one small nation after another by sheer weight of numbers and superiority of equipment. Great Britain and its Allies are also mighty, and they have right on their side as well. They are using their power in defence of small nations, and for the preservation of the liberties of weaker peoples. They. have set themselves up as a barrier between the atrocities of Hitlerism and the rest of Europe. They are fighting now in defence of their democratic principles, for the freedom of the individual, freedom of speech, and the freedom of the press. Individual rights were abolished in Germany a long time ago. Even the rights of the family have been invaded, and parents no longer enjoy the power to educate and control their children as they think fit, and to choose their careers for them. This right has been assumed by the State, and family life, as we know it, has almost ceased to exist. The Empire and its allies, though under an initial disadvantage, are striving heroically to check the spread of these evil doctrines of nazi-ism.

Members of the Opposition have said that the Government is very dilatory in its handling of Australia’s war effort. Ten years ago the. whole of the defence, system of this country was broken down.

SenatorKeane. - Why ?

Senator COOPER:

-I ask the honorable senator that question. The Scullin administration was responsible. I do not say that Australia was singular in that respect. At that time the great nations’ of the world were suffering from the’ malady known as war-sickness, and that will probably occur again at the termination of the present outbreak. The people naturally get tired of war effort. Wo were living in an atmosphere of false security. Military training was suspended, troops were disbanded, and war vessels were sunk, while all the time our present enemy was secretly arming. Prior to that our navy was fully manned, our air force - such as it was - was in good condition, and our military training was equal to that of any other country. When the need for preparedness again became apparent,it was not an easy matter to get back the men who formed the basis of that training, and re-erect the whole of the fabric that had been destroyed. As Senator Keane is well aware, we are an entirely democratic community. Honorable senators are elected to represent the views of all sections in each of the States. Nine years ago it was not an easy matter to convince the people of the necessity for making an immediate start to build up a huge defence force. Until the last two years, on account of the isolation of Australia, it lias been very difficult to make the people realize the apprehension and fear of attack felt by the people of Europe. Even now a large number of people in this country do not realize the gravity of the position in which Australia stands in consequence of the recent massed attacks in Belgium and Holland. Understanding of the realities of the situation has to be developed in the public mind. In that regard, the Government has received no assistance from our honorable friends opposite. In the years that have gone, general elections have been fought on a moderate war policy, and during the whole of that period the Government has received no assistance from honorable senators opposite in its efforts to establish a strong defence force. The Leader of the Opposition in the House of Representatives missed an excellent opportunity when he criticized the defence policy of the late Prime Minister (Mr. Lyons) upon the return of that gentleman from Great Britain, after having consulted the British defence authorities. Had the Leader of the Opposition agreed at that time to assist in the development of a strong defence force, instead of criticizing the Prime Minister of the day and leading tho people to believe that there was no necessity for alarmist propaganda, he would have had a good chance of obtaining control of the treasury bench. If honorable senators are frank they will admit that the Government has done a good job in respect of defence. ‘ When what the Government has done during the last, two years is quietly studied, no criticism can be levelled at it. At the end of the last war, the only ammunition” made in Australia was 303, and very little of that was produced. The Australian troops in Prance were supplied with Canadian ammunition and rifles. At the present time not only our own troops, but also those of Great Britain and New Zealand, as well as the Singapore base, are supplied with small arms ammunition, that is made in this country.

Senator KEANE:
VICTORIA

– It was the Labour party which originally established the small arms ammunition works.

Senator COOPER:

– I give to the Labour party the credit that is due to it in that respect. At the end of the last, war, however, those works employed only just over 2,000 men. Honorable senators opposite have particularly stressed the need for Australia to manufacture everything that is required to prosecute our war effort. Members of the Government party have shown by the results that have been obtained that they agree with that contention. Practically the whole of the criticism from honorable senators opposite has been confined to pettifogging details, and has ignored large issues. Senators Sheehan, Aylett. Brown and I yesterday had an opportunity to see what the Maribymong works can do. We saw only a small section of the works. 3 saw the same section eighteen months ago, and its output to-day is more than treble what it then was. Yet the Opposition says that the Government has clone nothing. The Department of Supply and Development has been responsible for that expansion. To it is due the credit for the turning out of the two guns which were handed over to the military authorities for testing last Monday. The workmanship in these guns is equal to the best in any part of tho world. I was told that when the blue prints were sent to Australia- the statement was made that it would take the workmen of this country three years to produce those two guns; yet they were . produced in ‘ten months. A year or two ago, when it -was suggested that machinery for ,: th making of munitions should be purchased overseas, even from Germany, we were criticized -and were asked why : it could not be manufactured in Australia. In the Maribyrnong works I saw machines from practically every country in the world. A very good machine which was purchased from Germany is doing excellent work there. .The Government deserves credit for its’ foresight in this direction. Critics had to admit -that these machines could not be manufactured in Australia. Munitions could be produced in hundreds of thousands of tons only by obtaining the machines that ‘we needed before the outbreak, of war made it impossible to purchase them from foreign countries or even from Great Britain. I understand that the Department of Supply and Development intends to expand its operations further, and that before long 17,000 .persons will be employed .’at these works. While inspecting the shell-making department of the works, I was struck by the fact that if we were short of men for this class of work, as we probably shall be before the war ends, much of it could be done by women, as it was in England during the last war, and probably is at the present time. A certain number of mechanics who have had some training could be released and trained for service as air force mechanics, of which there is probably a shortage at the moment. If this were done a good number of men could be released for the fighting services, where they are already greatly needed, and will probably become much more needed as time goes on.

– The trouble is that the wheat-growers are not getting a fair living to-day.

Senator COOPER:

– Many in Western Australia are not, but I believe that every honorable senator will agree that our first and vital duty is to win the war. Unless we do that we shall lose everything we have.

I wish now to discuss for a few moments the important subject of interest rates. Those who wish to be fair to the Government must admit that in this respect it has done well and deserves commendation. Interest rates have undoubtedly been kept at a reasonably low figure. I do not remember what, the position was eight months after the outbreak of the last war. I am given to understand that interest rates at that time were very high. When I returned to Australia in 1920, after my service overseas, I found that interest rates were higher still. The Monthly Review of Business Statistics for March, 1940, issued by the Commonwealth Bureau of Census and Statistics, shows that in 1928-29 the interest rates on fixed deposits varied from 4 per cent, for “three months to 4$ per cent for twelve months, and 5 per cent, for 24 months. In March, 194)0, the rates varied from 1.75 per cent, for three months to 2.5 per cent, for twelve months, and 2.75 per cent, for 24 months. The interest rate for deposits with the Commonwealth Savings Bank was 3.9 per cent, in .1928-29 and 2 per cent, in March, 1940. The yield on Australian consolidated bonds of all issues was 5.35 per cent, in 1928-29, and in March, 1940,’ it was 3.52 per cent. In March, 1940, the yield for 1941, 4 per cent, issues, was 3.13 per cent.; for 1944 and 1947, 4 per cent, issues, it was 3.32 per cent. ; and for 1950 to 1961, 4 per cent, issues, it was 3.60 per cent. The figures relating to rates of interest on first mortgages for New South Wales are also very informative. In February, 1940, 17 per i-ent. of such mortgages were at 4J per cent, or under, 31 per cent, were at over 4-i per cent, and up to 5 per cent., 39 per cent, were at more than 5 per cent, a nd up to 6 per cent., and only 10 per cent, were at more than 6 per cent, and up to 7 per cent. In November, 193S, the corresponding percentages were 22 per cent., 40 per cent., 30 per cent., and 5 per cent. Those figures indicate clearly that the Government has the financial situation well in hand. There has been no disorganization of the money market or of stock exchange operations.

Senator FRASER:

– There must have been some co-operation between the Commonwealth Bank and this Government.

Senator COOPER:

– Costs have increased in every direction since the outbreak of war. Food, clothing, jute goods, petrol and oils, machinery, and transport rates are a.ll dearer. I admit that the Government is doing its best to protect the public against increased prices, but it is failing. The only way in which primary producers can be recouped for increased, costs of essential commodities is by receiving higher prices for their products. I have just returned from Western Australia, and every wheat-grower I met, and many others who wrote to me, asked me when the Government would pay a second advance on wheat. I understand that next month the British Government will pay for approximately 25,000,000 bushels of wheat, which it has purchased. Western Australian farmers have received for hulk wheat at ports only 2s. 8 1/2d. a bushel, from which 4-Jd. has been deducted for freight. I urge the Government to make another advance of 9d. or at least 6d. a bushel. It is essential that this money should be found at once.

The argument that I have, advanced with regard, to the obligation that rests on this Government to pay a just price for wheal, which is compulsorily acquired applies also to wool. I admit that a greater price for wool has been obtained than that received in tho preceding season, but the fact remains that the price in that season was one of the lowest recorded for the last 25 years.

Senator McBride:

– The graziers’ organizations said they were satisfied with the price.

Senator E B JOHNSTON:

– That was not the verdict of the representatives of the small wool-growers’ associations. The growers on comparatively small areas in the farming districts cannot produce wool as cheaply as the rich squatters on the big leasehold areas in the northern and north-western pastoral districts. I maintain that the Government sold our wool to Great Britain at less than a just price, because a just price would at least cover the cost of production, plus a reasonable profit for the producer.

Senator McBride:

– The price was fixed after consultation with the growers’ representatives.

Senator E B JOHNSTON:

– The growers with whom I am particularly associated are not satisfied with the price. The annual meeting of the Australian Wool Producers Federation took place in Melbourne recently, and, according to the minutes, among those present were the following: -

President- -Hon J. M. Balfour. M.L.C. (Wheat and Wool-growers .Association of Victoria).

Secretary - Mr. F. B. Hitching (Primary Producers’ Association of Western Australia).

Victoria - Messrs. Marshman, Cullen, Chanter and Noyes.

Nev . South Wales - -Messrs. H. Henley, M.L.A.. mid B. Df. Cole.

Queensland - Messrs. ti. K. Humphries’ and K. J. McDonough.

Western Australia - Professor Cr. Irving and Mr. F. Fi. Hitchins.

South Australia - Messrs. Stott, Maycock and Vowles.

Apologies were received- from Mr. Powell (Wheat and Wool-growers Union of Western Australia), with authorization for Mr. Cullen to act as proxy. An apology was tendered on behalf of Mr. E. P. Beresford (Queensland) for unavoidable absence.

At that meeting the great majority of the wool-growers in each State was represented.

Senator McBride:

– No.

Senator E B JOHNSTON:

– As far as Western Australia is concerned, I am sure that the Primary Producers’ Association and the Wheat and Wool-growers’ Union in that State represent the majority of the growers. The decision of the meeting was as follows : -

This meeting is definitely of the opinion that the price, 10.75d. (sterling) at which the 1939-40 Australian wool has been sold to ‘the United Kingdom is inadequate to meet the needs of the industry at the present time, and urges the necessity for a review of the prices for all future clips to ensure a reasonable margin of profit to the producers, after taking into account the rapidly increasing costs of production due to war conditions. lt will be seen that the small growers, through their federation, are entirely dissatisfied with the price.

Senator E B JOHNSTON:

– That is so. Albany was an appraisement centre during the last war. To-day that town has been severely hit by the refusal of the Government to re-establish a centre there. Shipping services to that port have been reduced, and warehouses and storage space which would be available for the handling of wool at both Albany and Geraldton are now empty. At the same time, I am told, much of the wool received at the one existing centre is being stored in the open. An unanswerable case has been made out for the establishment of appraisement centres at these places to not only the present Minister for Commerce, but also his predecessor and tho Prime Minister. Every one, apparently,’ agrees that the request should be granted, but nothing has been done.

I wish now to refer to the constitution of the Central Wool Committee. At a meeting last March the Australian Wool Producers Federation passed the following resolution : -

This meeting objects to the constitution of the bodies set up to handle wool under the National Security legislation insofar as it does not provide for majority grower representation on the Central Wool Committee mid. all State wool committees in accordance with the policy unanimously adopted at the British Empire Producers Conference, and by the Australian Wool Producers Federation, and request the Federal Government to make immediate provision in accordance with this policy.

These bodies have not been constituted in accordance with the- policies of both the Western Australian and Australian Country party movements. The request embodied in the resolution was placed before the Minister at several meetings in Western Australia. We asked that an additional member should be appointed as a representative of the small woolgrowers of Western Australia. On every occasion the Minister replied that he was in favour of majority grower-control on all commodity boards and committees. He mentioned certain boards which he had appointed when he was previously Assistant Minister for Commerce in connexion with which he had applied this principle. The Minister has now held his office for some weeks, and this request has been placed before him time and again by representatives of Western Australia in this Parliament. There has been a Cabinet meeting in Western Australia, and Ministers have been accorded welcomes. I hope that there will be more meetings there. Ministers have said that they were pleased to visit Western Australia to see its disabilities for themselves, and that there ought to be a Western Australian on every one of these marketing boards, because of the peculiar conditions prevailing in Western Australia, and because of its isolation. In spite of this., however, our requests for the appointment of a Western Australian to the Central Wool Committee have been rejected.

We ‘ desire a revision of the earlier wool appraisements, particularly the first ‘ and second. Glaring injustices were committed in the first assessment and, to some degree, in the second, and some action should be taken to recompense those growers who received 2d. and 3d. per lb. less for their wool than they would have obtained had their wool been appraised later.

We further desire that the Tariff Board should be asked to inquire into the costs of producing wool. Some time ago, the committee which inquired into this matter stated that it cost 14d. per lb. to produce wool throughout Australia. Yet the Government has sold the last clip at less than that price, despite increased cost of production. The fact that such widely divergent opinions can be put forward by different authorities shows the need for an impartial inquiry by a responsible body before the price is fixed for next year’s clip. The whole subject should be inquired into by a competent tribunal, and I know of no more competent tribunal than the Australian Tariff Board. It would probably recommend a price that would give the small grower a fair return for his labour and. the capital lie has invested. The Australian. Wool Producers’ Federation asks, and 1 support the request, that the Tariff Board should inquire into the costs of producing wool, and that no sales be made of next year’s clip to the Government of Great Britain except at a price that will give a fair return to the producer say, ls. 3d. per lb. sterling or ls. 7d. per lb. in Australian currency.

The Government proposes to place a heavy burden of taxation on the country. I believe that Australians in all walks of life are prepared to make the sacrifices demanded of them by the war. The Government, however, should expend wisely the huge revenues, which are being raised by taxation and by loan for the prosecution of its war effort. All expenditure should be carefully scrutinized, and waste should be eliminated. In this connexion, we do not wish a recurrence of the waste involved in bringing soldiers from Western Australia to the eastern States for training. There is an uneasy feeling that defence expenditure is being confined almost exclusively to the eastern States. We have asked that munitions be manufactured at the Midlands Junction work- shops and elsewhere in Western Australia, but that has not been done. We are now told that no more private soldiers will be brought to the east, but that recruits for technical units will have to come to the eastern States for training. Let us have a change in this regard. Let us try to develop an Australian sentiment. If it is necessary to bring all these men to one point for training, let them, for a time at any rate, be all brought to Western Australia. This would have the advantage, also, that the men from the east would be some distance on their way to their destination.

I urge the Government to repeal - not merely to amend or alters - the tax on gold production. At present half of the excess price of gold over and above £9 per oz. is taken by the Government as a tax. The price now is £10 13s. 6d., so that the tax amounts to 16s. 7 1/2d. per oz., irrespective of whether the mine is making a profit or not. A similar tax was imposed iu South Africa, but it was discovered there to be a foolish mistake, and the incidence of the tax has now been altered so as to give relief to low-grade shows. The Australian Treasury supports the tax in its present form because it brings in four or five times as much as would a tax on profits, the same kind of tax as is imposed on all other Australian industries. The gold tax has to be paid whether a mine is working at a profit ot not, and certain big mining companies working on low-grade ores are working at a loss. So serious is their plight that they are likely to suspend production.

Senator Keane:

– Mention one of them.

Senator E B JOHNSTON:

– Wiluna is one, and Mount Magnet is another.

Senator Keane:

– They are working 6 dwt. ore.

Senator E B JOHNSTON:

– No, it is of much lower grade, about 2.7 dwt. A great deal of gold has been produced at Wiluna, thanks to the enterprise of British investors, who expended £1,000,000 on equipment and developmental work. The company also received a Government loan, which was repaid in full without any loss to the lender. Because of unfavourable developments at depth, which no one could have foreseen, the British investors in this company will not get. their money back. Though the mine is a losing proposition, the company will have to pay £50,000 this year to the Federal Government in this -unjust tax. This money, expended on exploratory work, might have revealed fresh ore bodies, the discovery of which would give the mine a new lease of life. At the 2,000 feet level there are ore bodies assaying 2.7 dwt. a ton, which could and would be worked if the tax were repealed. The State Government has spent several hundred thousands of pounds in the construction of a railway to Wiluna, which carries a population of about 7,000 persons, who are dependent on one mine. The monstrous injustice of taxing this community out of’ existence should be realized even in Canberra. The Commonwealth Parliament is composed largely of men who, having been elected by populous centres, naturally know a great deal about the eastern States, with a large concentration of the population, and the expenditure of money, principally in Sydney and Melbourne. Unfortunately, a good deal of the administration is in charge of men who know nothing about primary industries or the outlying parts of Australia. That is why there is such a monstrous injustice as the taxing of gold, which is required for the prosecution of the war, on the basis of production. The greater the quantity of gold produced, the more tax is paid, whether or not there is a loss on every ounce produced. It is a wrong method of taxation, which would not be accepted in respect of any other Australian industry in the eastern States. Gold-mining is 100 per cent, a country industry, and nearly 80 per cent, of the production comes from Western Australia. It is stated that at Kalgoorlie the heavy incidence of this tax results in the passing over of a lot of low-grade ore which could be worked if the tax were removed. The tax should be opposed by all parties in this cb amb” r, on the ground that it is contrary to all of the accepted principles of taxation. Gold is vital to Australia and the Empire, in order to secure the dollar credits that are needed in the United States of America. Modern wars are waged by mechanized armies. We can secure aeroplanes and much of the equipment, petrol and other essentials only from countries that are outside sterling exchange. It is imperative that our production of gold should be increased, to enable us to make purchases in the United States of America. Production should be encouraged, not discouraged by a monstrously unfair and stupid tax. If the commodity that is most necessary to enable us to wage the war is to be taxed, at least let the tax be at the rates fixed in respect of income tax, as is done in respect of secondary industries and many other things. The production of gold is so important to Australia that it would pay the Commonwealth to waive the tax, so long as a greater quantity was produced. The increase of production would not only increase the volume of employment but also enable the production of munitions for the conduct of the war to be enlarged. When the Federal Government imposed the levy of 50 per cent, of the amount received by gold producers in excess of £9 per fine oz., it reached the decision hurriedly and without conferring with the leaders of the State Mines Departments or other authorities on the subject. Again I complain that the Government does so much of its own volition, without consulting interested parties. Since the impost, strong opposition has been voiced to what is considered tho unfair principle of taxing production value, instead of the profits that mayaccrue from’ the commodities produced. lc appears significant that gold production has been, singled out for imposition in view of the fact that the value of production in Western Australia has reached such pleasing figures. The prices of raw materials generally, especially those that are required for war purposes, have increased since the war commenced, in a number of instances to a greater degree than has the price of gold. If there be one commodity that should not be selected for a special levy, it is gold. Undue taxation discourages this industry by retarding contributions of capital, and, subsequently, by inducing an indifferent attitude by the public towards it. Goldmining is an activity of variable temperament. Suitable encouragement will reflect favorably on the industry, whilst the reverse will slowly but surely lull public interest into somnolence. The Government appears to be under the impression that gold itself has the special virtue of being of value apart from the cost of winning it. This is a fallacy. Should a prospector or a mining company win a quantity of gold at a cost greater than its value, he or it would be better off without the metal, and consequently gets out of business. The Mount Magnet Company, through its engineer and director, has recently issued- the statement that that big’ mine will soon go out of operation unless the tax on the production of gold is lifted.. The higher the value of gold, the better for all concerned. Residents of mining towns, workers, and traders, all receive value from rising gold prices. If there be any doubt concerning this, doubters should compare the active conditions to-day at Kalgoorlie, Wiluna, Mount Magnet, Coolgardie, Agnew, Marble Bar, Norseman, and other mining centres, with the conditions of those places when the ruling price for gold was S5s. per oz. The change is due to the higher price of the metal, enabling ore of lower gold content to be profitably treated. In other words, payable ore reserves have been inestimably increased. One does not need to possess much minim knowledge to know that. Increased ore reserves demand treatment plants of greater size, and this means additional employment. It is estimated that one mining employee causes employment to be found for four others engaged outside the industry. I cite towns like Westonia, where there is very little except gold-mining, and about 100 employees are responsible for a population of five times that number. The Government of South Africa imposed a tax on gold production, but later removed it, realizing that the principle was wrong and militated against production, especially in- relation to low-grade ore deposits, and even high-grade properties which possessed low-grade ore bodies within their boundaries. Canada considered the imposition of a gold levy, but, realizing the folly of the policy, did not proceed with it. Thus, of tho three great gold-producing countries of the Empire Australia alone inflicts this levy on production. In India, Rhodesia and West Africa gold-producers are afflicted with a war levy on gold, but as cheap coloured labour is employed in these countries the imposition is less burdensome than in Australia. Suggestions have been made that low-grade mines should receive special consideration, with a view to compensating them for the levy. That, however, would not remedy the position. I am not prepared to say what would be. a fair grade to fix. Threepennyweight ore might be profitable in one locality, whereas in another, remote from railway facilities, it would be quite unprofitable. I consider that the impost should be entirely discontinued, and the legislation which imposed the tax repealed. We should adhere to the usual method of taxing profits by means of the income .tax which is applied to other industries. Even 5-dwt. ore in one place might be high’ grade in another - at Big Bell for instance - in consequence of different conditions. The tax is wrong in principle and detrimental in its reactions, and should therefore be removed. An equable levy on the industries profiting from an increased output due to war conditions should be imposed. I therefore urge the Government to repeal the gold tax as it is altogether unjustifiable to impose . the tax on this commodity, which is so essential to the maintenance of our economic life.

I do not’ intend to refer at present to the other legislative proposals referred to in His Excellency’s Speech. I shall conclude by saying that I entirely support the war effort of the Government and commend it- for the actions it has taken to prosecute the war. I am particularly pleased that the Communists within our midst are to be dealt with effectively. There can be no doubt the disastrous coal strike, which is paralysing our industries and dislocating the life of our people, is entirely due to the machinations of the self-confessed Communists who are the leaders of the coal-mining unions. I hope that the Government will go to the utmost limits in dealing with the Communist menace in our midst.

Question resolved in the affirmative.

Motion (by Senator McLeay) agreed to.

That the Address-iii-Reply to His Excellency the Governor -General’s Opening Speech hu presented to His Excellency by the President and such senators as may desire to accompany him.

The PRESIDENT (Senator the Hon. J. B. Hayes). - I shall ascertain when His Excellency the Governor-General will be pleased to receive the Address-in-Reply. When the time is fixed I shall acquaint honorable senators.

page 783

QUESTION

HOUR OF MEETING

Motion (by Senator McLeay.) pro posed-

That the Senate, at its rising, adjourn till 2.30 p.m. to-morrow.

Senator KEANE:
Victoria

.- I ask the Leader of the Government whether there is any reason why the Senate should ‘ not meet’ at 11 a.m. to-morrow?”

Question resolved in the affirmative.

page 783

PAPERS

The following papers were pre sented : -

Convention for facilitating International Circulation of Films of Educational Character - Proces-Verbal concerning application of certain Articles - Geneva,- 12th September, 1938..

Commonwealth Public Service ActAppointment - Prime Minister’s Department - H. P. Brown.

Regulations amended - StatutoryRules 1940, No. 74.

Customs Act - Proclamations prohibiting the exportation (except under certain conditions) of-

Bags,sacks, packs, . bales and mats of hessianorjute; Hessians and other jute piece goods’; Metal working machine tools; Petroleum products; Tetra-ethyl lead (dated 30th April, 1940).

Coal; Fuel oil; Ships’ Stores (dated 15th April, 1940).

Ores and concentrates; Minerals; Metals . and Metal Manufactures; Other Metals; Drugs and Chemicals; Miscellaneous (dated 23rd April, 1940).

Paper, waste, used and second-hand (dated 9th April, 1940).

Designs Act - Regulations amended - Statutory Rules 1940, No. 6.

Excise Act - Regulations amended - Statutory Rules 1940, No. 48.

Patents, Trade Marks, Designs and Copyright (War Powers) Act - Regulations - Statutory Rules 1939, No. 175.

Transport Workers Act - Regulations amended - StatutoryRules 1940, No. 62.

Wine Export Bounty Act - Regulations - Statutory Rules 1940, No. 49.

Air Force Act - Regulations amended - Statutory Rules 1940, No. 75.

Defence Act - Regulations amended- Statutory Rules 1940, Nos. 68, 76.

Lands Acquisition Act - Land acquired at - Byford, Western Australia- For Postal purposes.

Darwin, NorthernTerritory - For Road purposes.

Fremantle, Western Australia - For Defence purposes.

Geraldton, Western Australia - For Defence purposes.

King Island, Tasmania - For Postal purposes.

Lymington, Tasmania - For Postal purposes. ……. -

National Security Act -

National Security (Aliens Control) Regulations - Orders -

Enemy Aliens to report.

Restricting place of abode and movements of aliens.

National Security (Apple and Pear Acquisition ) Regulations-Order.

National Security (General). Regulations - Orders -

Power toobtain information.

Prohibited places (3).

Protected areas (2).

Taking possession of land, &c. ( 37 ) .

Use of land (2).

Regulations amended, &c. - Statutory Rules 1940, Nos.63, 64,65,66, 67, 71, 72, 73; 77; 78, 79. 80.

Naval Defence Act - Regulation’ amended - Statutory Rules 1940, No. 81;

Northern Territory. Acceptance Act; and Northern Territory (Administration) Act- .

Brands Ordinance - Regulations amended (No. 3 of 1940)..

Crown Lands Ordinance - Reasons for resumption of reservation of certain lands suburban to Darwin, together withplan showing area resumed.

Seat of Government Acceptance Act and Seat of Government (Administration) Act-

Ordinances of 1940 -

No. 2- -Adoption of Children.

No. 3 - Canberra University College.

No. 4 - Police Superannuation.

No. 5 - Canberra Community Hospital.

No. 6- Meat.

No. 7 - Careless Use of Fire.

Building and Services Ordinance - Regulations amended.

Police Ordinance - Regulations amended.

Public Health Ordinance - Regulations amended.

Postmaster-General’s Department - Twentyninth Annual Report, 1938-39.

Audit Act - Regulations amended - Statutory Rules 1940, No. 46.

International Labour Organization of the League of Nations - Twenty-fifth Session, held at Geneva, 8th to 28th June, 1939- Reports of Australian Delegates.

Papua Act - Ordinance No. 2 of 1940 - Postal Rates (Defence Forces).

Senate adjourned at 11.5 p.m.

Cite as: Australia, Senate, Debates, 14 May 1940, viewed 22 October 2017, <http://historichansard.net/senate/1940/19400514_senate_15_163/>.

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Senate14 May 1940

AUSTRALIAN LABOUR PARTY (NON-COMMUNIST):

QUESTION

HOUSING IN CANBERRA

Senator FOLL:QUEENSLAND · NAT; UAP from 1931

NAVALVICTUALLING OPERATIONS

QUESTION

CENSORSHIP OF HANSARD

Senator McLEAY:Minister for Trade and Customs · SOUTH AUSTRALIA · UAP

QUESTION

WOOL APPRAISEMENT AT NEWCASTLE

Senator ABBOTT:NEW SOUTH WALES

Senator McBRIDE:Minister without portfolio assisting the Minister for Commerce · SOUTH AUSTRALIA · UAP

QUESTION

LANDS FOR MILITARY PURPOSES:

Senator SHEEHAN:VICTORIA

Senator FOLL:Minister for the Interior · QUEENSLAND · UAP

QUESTION

WHEAT : DESTRUCTION BY MICE

Senator ARMSTRONG:NEW SOUTH WALES

Senator McBRIDE:UAP

QUESTION

SPORTING AMMUNITION

Senator AYLETT:TASMANIA

Senator FOLL:UAP

QUESTION

AUSTRALIAN BROADCASTING COMMISSION

Senator McBRIDE:UAP

QUESTION

WAR FINANCE

Senator McBRIDE:UAP

BEQUEST TOTHE SENATE

QUESTION

SALE OF CANADIAN WHEAT TO GREAT BRITAIN

Senator CLOTHIER:WESTERN AUSTRALIA

Senator McBRIDE:UAP

QUESTION

DEFENCE EXPENDITURE IN WESTERN AUSTRALIA

Senator CLOTHIER:

Senator FOLL:UAP

COMMONWEALTH ELECTORAL BILL 1939

WAR PENSIONS APPROPRIATION BILL 1940

INVALID AND OLD-AGE TENSIONS APPROPRIATION BILL 1940

QUESTION

WAR IN EUROPE

Senator COLLETT:Minister in charge of War Service Homes. · Western Australia · UAP

FINANCIAL STATEMENT 194Q-41

Senator McBRIDE:South AustraliaAssistant Minister for Commerce · UAP

Budget 1939-40

Wah Expenditure

Taxation Proposals

Income Tax - Individuals

Land Tax

Estate Duty

Sales Tax

QUESTION

GOVERNOR-GENERAL’S SPEECH

Senator SHEEHAN:Victoria

Senator Collett:

Senator SHEEHAN:

Senator Collett:

Senator SHEEHAN:

Senator SHEEHAN:

Senator Herbert Hays:

Senator Dein:

Senator SHEEHAN:

Senator Collett:

Senator SHEEHAN:

Senator Herbert Hays:

Senator SHEEHAN:

Senator Herbert Hays:

Senator SHEEHAN:

Senator Collett:

Senator SHEEHAN:

Senator Collett:

Senator SHEEHAN:

Senator Dein:

Senator SHEEHAN:

Senator BRAND:Victoria

Senator Sheehan:

Senate
14 May 1940

Senator FOLL:
QUEENSLAND · NAT; UAP from 1931

Senator McLEAY:
Minister for Trade and Customs · SOUTH AUSTRALIA · UAP

Senator ABBOTT:
NEW SOUTH WALES

Senator McBRIDE:
Minister without portfolio assisting the Minister for Commerce · SOUTH AUSTRALIA · UAP

Senator SHEEHAN:
VICTORIA

Senator FOLL:
Minister for the Interior · QUEENSLAND · UAP

Senator ARMSTRONG:
NEW SOUTH WALES

Senator McBRIDE:
UAP

Senator AYLETT:
TASMANIA

Senator FOLL:
UAP

Senator McBRIDE:
UAP

Senator McBRIDE:
UAP

Senator CLOTHIER:
WESTERN AUSTRALIA

Senator McBRIDE:
UAP

Senator FOLL:
UAP

Senator COLLETT:
Minister in charge of War Service Homes. · Western Australia · UAP

Senator McBRIDE:
South AustraliaAssistant Minister for Commerce · UAP

Senator SHEEHAN:
Victoria

Senator BRAND:
Victoria

Senator COURTICE:
Queensland

Senator LECKIE:
Victoria

Senator FRASER:
WESTERN AUSTRALIA

Senator FRASER:
Western Australia