Senate
9 August 1946

17th Parliament · 3rd Session



The PRESIDENT (Senator the Son. Gordon Brown) took the chair at 10.30 a.m., and read prayers.

page 4125

QUESTION

POTATOES

Senator SAMPSON:
TASMANIA

– Hag the attention of the. Minister for Supply and’ Shipping been drawn to a statement made at Burnie by Mr. C. G.’ Wragg, Deputy Potato Controller, on “Wednesday last, that the Minister “ was. very rauch off the track” in denying that 600,000 bags ofpotatoes were rotting in Tasmania, and that only 100,000 bags remained in that State? Is the Minister aware that a recent survey revealed that there were approximately 1,000,000 bags of’ potatoes in Tasmania, yet to be transported to the mainland ? Will shipping be made available to lift these. potatoes to prevent unnecessary wastage and deterioration?

Senator ASHLEY:
Minister for Supply and Shipping · NEW SOUTH WALES · ALP

– As I have already intimated, the Director of Shipping is making arrangements for the early shipment of 100,000 bags of potatoes to’ take up the -present lag. In confirmation of that, I have before me a statement issued by my department this morning. It if as - follows: -

On the 1st August, the Minister for Commerce and Agriculture (Mr. Scully) accompanied by the Potato Controller, Mr. Foster, and Mr.. McPherson, of Hie Department of Commerce and Agriculture, saw me concerning the shipment of potatoes from Tasmania. It was staled that the regular demand was for 45,000 bags weekly for Sydney -throughout the year plus a seasonal demand of 15,000 bags weekly for Queensland. It was stated further that there would be some 900,000 bags of potatoes to be lifted from Tasmania, the bulk for Sydney, during the next thirteen to fourteen, weeks, and that recent lift-rugs- had averaged only 28,000 bag? weekly. Advice has been received from the Australian Shipping/Board that potatoes shipped from Tasmania in six vessels from the5th July to the 5th August, inclusive, totalled 192,731 bags. The hoard’s present fixtures between the 9th August and the 22nd August are for 190,000 bags in nine vessels. The board must of necessity deal with the lifting of cargoesfrom Tasmanian and all other ports on a day to day basis,with regard to the ships available, and the urgency of the cargoes to be carried. Every endeavour is made, however, to allot the maximum possible tonnage for potato loadings, having in mind the limited tonnage on the coast and the urgent need to carry other produce, building materials and similar cargoes. It is clear that some distinction should he made between potatoes awaiting shipment and quantities available for shipment during. ,,the next three months. The 900,000 bags referred to represents the total which will become available during the next three months, It should be added that portion of the potatoes which will become available will be shipped overseas. At the present time, a ship is en route to Tasmania to load approximately 12,000 sacks for the East, and, subject to the provision of the necessary overseas tonnage, it is expected that approximately 15,000 hags per month will be shipped overseas betweennow and the endof November.

Later: ‘

Senator McLEAY:
SOUTH AUSTRALIA

– I ask the Minister representing the Minister for Trade and Commerce whether the Government proposes to continue potato control in South Australia next year?

Senator J M FRASER:
WESTERN AUSTRALIA · ALP

– I shall bring the honorable senator’s question to the notice of the Minister for Commerce and Agriculture.

page 4126

QUESTION

RE-ESTABLISHMENT

PREFERENCE– LAND SETTLEMENT OF EX-SERVICEMEN- APPRENTICES.

Senator BRAND:
VICTORIA

– I ask the Minister representing the Minister for Post-war Reconstruction whether it is the intention of the Government to amend, by regulation; certain defects in. the Reestablishment and EmploymentAct. If so, will the Minister confer with his colleague with a view to ensuring that any amendment of section34 will provide for the prescribed period ofseven years’ preference to commence from the date when the amendment is made?

Senator McKENNA:
Minister for Health · TASMANIA · ALP

– Some amendments of the act by regulation are contemplated. Section 34 does provide for a seven years’ term of preference. I shall be glad to convey the honorable senator’s request to the Minister for Post-war Reconstruction.

Later:

Senator A J FRASER:
VICTORIA · LP

– Is the Minister representing the Minister for Repatriation yet in a position to reply to a question which I asked recently as to why no ex-servicemen of WorldWar II. have yet been settled on the land, although 412 single-unit farms have bees provided?

Senator CAMERON:
Postmaster-General · VICTORIA · ALP

– I am not aware that it is a fact that any ex-servicemen of World War II. have been denied rehabilitation. The question asked by the honorable senator has been forwarded to the Minister for Repatriation, and when I receive a reply I shall be pleased to forward it to him.

Senator ASHLEY:
ALP

– On the 2nd August, Senator Brand asked me » question regarding the rights of exservicemen, who before enlistment had been apprentices, to be registered for post-war training. I refer the honorable senator to Division III.,Part 3 of the Reestablishment and Employment Act, which deals with the position of apprentices who enlisted in the services. The division safeguards the rights of such apprentices at far as is reasonably practicable by providing that, on application by the apprentice, his previous employer must revive the contract of apprenticeship unless the apprenticeship authority is satisfied that the employer is no longer in a position to undertake the proper training of the apprentice, in which’ case the contract may be transferred to another employer and only if that is impracticable is the contract to be cancelled.

COAL-MINING industry.

Senator ARNOLD:
NEW SOUTH WALES

-Has the Minister forSupply and Shipping been informed oi a meeting of the miners federation in Sydney yesterday- at which the leaders of the federation instructed the coal-miners that there must be no unnecessary stoppages of work? Is he also aware that yesterday every coal mine in Australia was fully employed and that production for the day totalled 50,000 tons? Can the Senate regard this as evidence that the coal-miners realize that, for the first time, a genuine attempt is being made to rehabilitate the industry?

Senator ASHLEY:

– It would be presumptuous on my part to assume that the high production yesterday, when all mines in New South Wales operated, was due to the legislation introduced by this Government. However, the Government is delighted to know that there has been a response to its efforts to increase production, whatever the cause of that response may be. I am glad that the miners’ leaders have given the advice of which I have read in the press. I hope that both the miners and the owners will appreciate their responsibility to the nation. I am sure that everybody is pleased by the fact that all mines in New South Wales are working. When the miners realize the desperate need of the nation for coal, I am sure that they will accept their responsibilities and do their best to satisfy that need.

page 4127

QUESTION

THE PARLIAMENT

Broadcasting of Proceedings

Senator McLEAY:

– I wish to direct a question to you, Mr. President, as one of the representatives of the Senate on the Parliamentary Proceedings Broadcasting Committee. Now that debates are broadcast, do you think that it is fair that statements, maligning individuals who have no opportunity to reply should be made in the Parliament? Are you in a position to indicate whether the committee proposes to take action to prevent the’ abuse of parliamentary privilege in this way?

The PRESIDENT:

-On other occasions when similar questions have been addressed to me, I have expressed a doubt as to whether they are strictly in order, but as I am a’ representative of the Senate on the Parliamentary Proceedings Broadcasting.- Committee I shall reply to the honorable senator’s question. This matter has come before the committee and in the next Parliament it will be given further consideration. I hope that the Leader of the Opposition does not suggest that any member of the Senate has been guilty of maligning outside individuals in the way suggested by his question. Members of the Parliament enjoy certain privileges, but my experience has been that the proceedings of the” Parliament have been conducted with dignity, and that very little cause exists for complaint against the conduct of the members of either chamber. I am aware that fears are entertained in certain places that as the .proceedings of the Parliament are now being broadcast, statements maligning persons outside the Parliament may be made. As I have said, the subject will be given consideration by the committee which will be appointed when the new Parliament assembles, but, of course, I cannot say at this stage what action’ will be taken by it.

page 4127

QUESTION

POWER KEROSENE AND GUM BOOTS

Senator AYLETT:
TASMANIA

– As the secretary of an organization of farmers in Tasmania has complained of a serious shortage of power kerosene and gum boots, can the . Minister for Supply and Shipping give to the Senate any information regarding supplies of those two commodities ? In particular, can he say when supplies to Tasmania are likely to be augmented?

Senator ASHLEY:
ALP

– The honorable senator informed me this morning that he intended to ask a question on this subject. I now inform him that all restrictions upon the manufacture and sale of all types of rubber boots were removed some months ago, and the’ adequacy of supplies is now solely a matter of production. Manufacturers are arranging distribution to. the States in accordance with supplies made available during a base period, with returns furnished by the manufacturers, whilst indicating ‘that gum boots are in short supply, ‘ disclose that Tasmania is’ receiving an equitable share of available supplies.’ ‘

Theoverall position in regardto supplies of power kerosene in Tasmania is satisfactory. Any difficulties experiencedin obtaining supplies areno doubt caused through delays in distribution throughout the State, arising fromshortage of road and rail transport. If the honorable senator will indicate specific areas where power kerosene is in short supply, I shall endeavour to have the position rectified.

page 4128

QUESTION

CLOTHING EXPORTS

Senator BRAND:

– Yesterday, the Minister for Commerce and Agriculture made a statement in the House ofRepresentatives setting out the values of our exports last year. To what country or countries was clothing to the value of £3,266,000 exported, and what country or countries received textile goods to the value of £3,069,000?

Senator J M FRASER:
WESTERN AUSTRALIA · ALP

– I am not aware of the statement to which the honorable senator refers. However, I have some knowledge of the exports mentioned. The great bulk of the material to which he refers, andwhich was not required in Australia, was sold toUnrra as part of our commitments to that body. Should the honorable senator require furtherinformation I shall obtain it for him.

page 4128

QUESTION

MR. A. E. MONTI

Senator A J FRASER:
VICTORIA · LP

– Is the Leader of the Senate in a position to supply the answer which he promised on Wednesday last indicating to what degree the Commonwealth Government financed the trip to Europe of Mr. A. E. Monk, thesecretary of the Australasian Council ofTrade Unions, who recently returned from Moscow?

Senator ASHLEY:
ALP

-I have not yet received an answer to thehonorable senator’s question. Immediately I do so, I shall make it availableto him.

page 4128

QUESTION

WAR SERVICE HOMES

Senator COOPER:
QUEENSLAND

– Isthe Minister representingthe Minister for Repatriation aware that very considerable delay occurs in completing the purchase of War Service Homes already erected, particularly : in country districts? Will the Minister consider the proposal that the local sub-branch of the Returned Sailors Soldiers and Airmen’s Imperial League of Australiain country districts be permittedtoappoint anadvisory panel of three members : to investigate applications to purchase war service homes?

SenatorCAMERON-. - I am not aware that any delay of ‘the kind mentioned by the honorable senator occurs. I shall bring his question to the notice of the Minister for Repatriation.

page 4128

QUESTION

SECONDARY INDUSTRIES

Senator A J FRASER:
VICTORIA · LP

– Can the Minister for Trade and Customs supply to the Senate the amount of subsidies paid to secondary industries for the purpose of preventing increases of prices to consumers, and indicate some of the industries which are in receipt of such subsidies ?

Senator J M FRASER:
WESTERN AUSTRALIA · ALP

– The Department wouldrequire to detail a special staff to take out complete informationregarding subsidiespaid to secondaryindustries, and the work would take aconsiderable time.If it will satisfy the honorable senator, I shall supply details of subsidies paid to several of the more important secondary and. primary industries.

page 4128

QUESTION

MEAT INDUSTRY.

Rationing - AustralianMeat Board.

Senator McLEAY:

– Iask the Minister for Trade and Customs whether it is afact that women are being employed by the rationing officers to approach butchers with the object of inciting them to break the law on compassionate grounds? If so, does the Ministerpropose to take action to stop such dirty tactics ?

Senator J M FRASER:
WESTERN AUSTRALIA · ALP

– I am pleased that the honorable senator has asked that question. It is not a fact that women in my department, in either the prices orthe rationing branches, have been employed in the manner indicated. Following upon a reference by the Leader of the Opposition earlier in the session to the broadcasting of lying statements, I ask leave of the Senate to makea statement.

Leave not granted.

Later:

Senator A J FRASER:
VICTORIA · LP

– Will the Minister representing-1 the- Minister for Commerce and Agriculture give sympathetic consideration to the request of the Victorian Provisional Meat Council that a meat producer be appointed chairman of the Australian Meat Board, and that the producers’ representatives on the hoard be appointed’ by ballot.

Senator J M FRASER:
WESTERN AUSTRALIA · ALP

– As I pointed out when the Mea’t Export Control Bill was in the committee stage earlier this week, government money amounting to £20,000)000 is involved in the scheme. However, I am sure that when- appointments ‘ to the board are under- consideration, due regard will be paid to the Honorable senator’s request.

page 4129

QUESTION

TAXATION

Sales - Entertainment

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

– Will- the Minister for Trade and Customs inform the Senate whether inspectors of the Prices Branch, when calculating the allowable prices to: be charged to the consumer, make their estimates on the basis of the manufacturer’s- price, plus sales tax? As the margin allowed in many cases goes up to 40 per cent., does not the Minister consider that the policy of allowing a profit on sales tax is not only unfair, but unjust to the consumers?

Senator J M FRASER:
WESTERN AUSTRALIA · ALP

– I am not in a position to reply in detail to the honorable senator’s question, but the Government does not desire, unless in- exceptional cases, to interfere with the decisions of the price-fixing authority. The Commonwealth Prices Commissioner has certain statutory powers, and it would be inadvisable for the Government or a Minis- ‘ tor, except in special circumstances, to interfere with his decision.

Senator McLEAY:

– Having .regard to. the- high cost of building and the fact that furniture and furnishings have increased in cost hy over 100 per cent., E ask the Minister representing the Treasurer whether the Government will give immediate consideration to an early reduction of the sales tax on furniture and furnishings-?.

Senator ASHLEY:
ALP

– I am not -able to say whether the Government,, at this late stage of the closing session- of this Parliament, would be prepared to consider a reduction of the sales tax on the goods mentioned. I see no -reason why special consideration should be given to those commodities, rather than to others on which sales tax is imposed. Any reduction in that regard should provide overallrelief, which would be of benefit to the great majority of the community. In the imposition of taxes, the cardinal principle always observed is that they should bespread over the whole of the people, and placed on the shoulders of those best able to bear the burden. That principle ifequally applicable; to1 the- removal or reduction of taxes

Later:

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

– Commodities subject fo sales tax are divided into three groups on which thetax is 25 per cent.,. 12£. per cent, and 7£ per cent, respectively. Will theMinister representing- the” Treasurer take up with- his colleague the question of changing furniture- and furnishings from the 12$ per cent, group to the 7$ per cent, group? I emphasize that the present high cost of furniture and furnishings if a.n important consideration to young exservicemen and others who- wish to establish their own homes.

Senator ASHLEY:
ALP

– I assure thehonorable senator that when the Government returns to office after the 28th September, it will give full and sympathetic consideration to the matter raised by the honorable senator.

Senator McLEAY:

– I ask the Minister representing the Treasurer whether the. Government is prepared to give consideration to the immediate removal of the entertainments tax on amusementsprovided at seaside resorts for children? Can the Minister say what is the cost of collecting that tax, and what is the total revenue derived from it?

Senator ASHLEY:

– It is not usual to disclose Government policy in answer to questions. Probably the matter that is now engaging the attention of the Leader of the Opposition will be- dealt with in the. policy speech of the Prime Minister which is. to be delivered in a few weeks’ time. °

page 4130

QUESTION

WHEAT INDUSTRY

Senator McLEAY:

– In view of the serious drought now being experienced in certain portions of New South Wales, including wheat-growing districts, I ask the Minister representing the AttorneyGeneral whether the Government will reconsider its action in forcing wheatgrowers to go to additional expense by appealing to the High Court for protection in respect of a sum of money which they claim has been confiscated .from them ?

Senator McKENNA:
ALP

– I am not aware of the extent of drought conditions in New South Wales. Wheat-growers who have recourse to the High Court are exercising a right that they share in common with every citizen of the Commonwealth who feels aggrieved about any particular matter. I do not think any further reply to the honorable senator’s question is called for.

page 4130

QUESTION

INTEREST RATES

Senator McLEAY:

– As it is the declared policy of the Government to keep interest rates as low as possible, I ask the Minister representing the Treasurer whether the Government will give consideration to a reduction of the rate of 3-J per cent, charged to wheat-growers and other primary producers on overdrafts with the Commonwealth Bank which are guaranteed by the Commonwealth Government? .

Senator ASHLEY:
ALP

– A reduction of interest rates has been a prominent feature’ of the Government’s policy. I may point out that so far as wheatgrowers and other primary producers are concerned, interest rates to-day are considerably lower than they were when anti-Labour governments were in office. The Government will continue to give consideration to a reduction of interest rates applicable to the whole community, including wheat-growers.

Later:

Senator McLEAY:

– In view of the statement by the Minister that interest rates charged to primary producers are lower than they were when anti-Labour administrations were in office, I now ask him whether the answer that he gave to me last week from the Treasurer that the interest rate charged wheat-growers was still 3£ per cent. - the same as it was in 1939 when 1 was Minister for Commerce - is correct?

Senator ASHLEY:
ALP

– I assure the Honorable, senator that the answer I gave to him last week was correct.

page 4130

QUESTION

HOUSING

Senator FINLAY:
SOUTH AUSTRALIA

– Will the Minister representing the Treasurer investigate the- possibility of making money available for home building at 1 per cent, interest, or at the cost of issuance, whichever is the lesser, ‘to enable home builders to complete the purchase of their dwellings in the shortest possible time?

Senator ASHLEY:
ALP

– I shall place the honorable senator’s question before the Treasurer for consideration. hides and. Tallow.

Senator A J FRASER:
VICTORIA · LP

– In view of the loss to primary producers due to the low prices at present fixed for hides and tallow, will the Minister for Trade and Customs give favorable and early consideration to an increase of ‘those . prices so that producers of these commodities may derive a return more in conformity, with the export parity price?

Senator J M FRASER:
WESTERN AUSTRALIA · ALP

– As I have pointed out on several occasions, the operation of price stabilization in this country compares more than favorably with that of other countries. To permit increases of the price of certain items, might have a detrimental effect upon our economy generally. However, I shall have the matter investigated.

page 4130

QUESTION

SHIPPING

Refrigerated Cargoes

Senator A J FRASER:
VICTORIA · LP

– In order that some guarantee may be given to producers of perishable goods during the coming season,’ can the Minister for Supply and Shipping indicate whether it is possible now to resume regular shipments of refrigerated cargo from this country to Great Britain?

Senator ASHLEY:
ALP

– Full consideration is- being given by the Government and by the’ Shipping Board, to . the, question of refrigerated cargoes for Great Britain, and the honorable senator may rest assured that our export trade in perishable goods is safe in the hands of the Government and of the Shipping Board.

page 4131

QUESTION

REPATRIATION

Allowances

Senator TANGNEY:
WESTERN AUSTRALIA

asked the Minis ter representing the Minister for Repatriation, upon notice -

  1. As ex-servicemen from the gold-fields areas of Western Australia are frequently required to proceed to Perth for medical attention or examination as a result of disabilities arising from active service with the fighting forces, with the consequential loss of wages to those workers, will the Minister consider the question of reimbursing, to the extent of their normal full wages, those ex-service personnel who are required to leave their home town for such attention under instructions from the Repatriation Department or the agents thereof?
  2. Is it a fact that at the present time the rate allowed to ex-servicemen is6d. per hour from the time they depart from their home station until they arrive back by the first train immediately after medical attention is concluded; if so, is this rate now less than that allowed injured workers in Western Australia under the Western Australian Workers’ Compensation Act?
  3. If the Minister approved of the course suggested in No. 1. will the Repatriation Department make the necessary adjustment of payment at the end of the pay period immediately following the date of such medical attention or examination?
  4. Will the Minister consider the granting of a first-class sleeping return ticket by train irrespective of what rank has been attained in the forces?
Senator CAMERON:
ALP

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

  1. I will give consideration to the matter as affecting members of the forces throughout the Commonwealth.
  2. No; under the Australian Soldiers’ Repatriation Regulations the subsistence allowance is an amount not exceeding twelve shillings a day when travelling by land. In’ addition to the subsistence allowance a member may be entitled to payment of medical sustenance. The existing rates of subsistence allowance and medical sustenance were fixed in accordance with the recommendations of the Joint Parliamentary Committee, consisting of both sides of both Houses of Parliament. The medical sustenance scale, inclusive of war pension, is: Member, £5 per fortnight; wife, £2 4s. per fortnight; each child, 18s. per fort- night.
  3. Seeanswer to No. 1.
  4. The Repatriation Department does not make any differentiation between the various ranks of members of the forces. When a member is in receipt of a war pension and is required to travel for treatment or pension purposes, he is provided with first-class travelling facilities and, if travelling overnight, a sleeping berth. In the case of a member who is not in receipt of a war pension, firstclass travelling facilities, including sleeper, may be granted at the discretion of a Deputy Commissioner of Repatriation.

page 4131

QUESTION

BUTTER

Senator A J FRASER:
VICTORIA · LP

asked the Minister representing the Minister for Commerce and Agriculture, upon notice -

In view of the statement by the Minister, released on the6th August, to the effect that the United Kingdom Government had agreed to increase the price of Australian butter to 173s. 6d. sterling perewt., will he inform the Senate by what authority the Government proposes to acquire the butter in question after National Security Regulations have been repealed?

Senator J M FRASER:
WESTERN AUSTRALIA · ALP

– The Minister for Commerce and Agriculture has supplied the following answer: -

The Commonwealth Government does not acquire butter and does not intend to do so.

page 4131

QUESTION

ALUMINIUM

Senator HERBERT HAYS:
through Senator McLeay

asked the Minister representing the Acting Minister for Munitions, upon notice - “

  1. Have the negotiations between the Commonwealth Government and the Government of the State of Tasmania been completed for the production of aluminium in Tasmania?
  2. If so, when is it expected that production will commence ?
Senator ASHLEY:
ALP

– The Acting Minister for Munitions has supplied the following answers: -

  1. Yea. The arrangements made between the Commonwealth and Tasmania are embodied in the Aluminium Industry Act 1944.
  2. Until technical investigations by the Aluminium Commission are completed no definite date for the commencement of production can be given.

page 4131

QUESTION

TRANSPORT

Standardization of Railway Gauges - Oil Fuel

Senator NASH:
WESTERN AUSTRALIA

asked the Minister representing the Minister for Transport, . upon notice -

  1. In connexion with the standardization of Australia’s railways, has the attention of the Minister been drawn to a statement appearing . in the West Australian dated the 31st July, 1.946, wherein the Minister for Railways in Western Australia is reported as having said: (a) That it was not correct that Western Australia’s share of the .cost would be £7,000,000, with the balance of the cost to be borne by the Commonwealth and eastern States governments; (6) that it was not correct that Western Australia had rejected this arrangement; (c) that the total cost, of unification was estimated at about £215,000,000, of which work to the value of about £57,000,000 would be done in Western Australia; (rf.) that Western Australia’s contribution, including associated works, would be about £8,000,000?
  2. If so, will the Minister comment- on thisstatement?
Senator COLLINGS:
Vice-President of the Executive Council · QUEENSLAND · ALP

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

  1. Yes. (a) On the programme of £50,000,000 to be spent in Western Australia, that State would have been required to contribute £7,000,000. Including the cost of associated works, the amount to be spent in Western Australia would have been £57,000,000, of which amount the State would have been required to contribute £7,600,000. The latter figure is related to the plan for the whole of Australia, estimated to cost £215,000,000. (6) At the conference in Sydney on 23rd May, 1946, and at preceding conferences, the Minister for Railways, Western Australia, on behalf of that ‘State, definitely raised objections to the proposal, and the same comment applies to the Queensland representative. Following the breakdown of negotiations, it was decided that the discussions continue with those States which, were anxious to co-operate. Mo request has been received from Western Australia to indicate that they have changed their attitude to the proposed plan, (c) See answer to (a), (d) See answer to (o).
  2. The Commonwealth opened up negotiations on this matter with all the States in May, 1945, and has done everything possible to encourage Western Australia to join in .the plan, for standardizing railway gauges and went, to the extent of advancing money to permit of the survey of the east-west line from Kalgoorlie to Fremantle in anticipation of approval of all - States to the plan, so that a commencement could he made with the construction of that line as one of the early projects. The States of Victoria and South Australia, in agreement with the State of Sew South Wales, however, desired to accept the general plan prepared by the Commonwealth, and it would have been unfair to them to further delay negotiations on account of the reluctance of Queensland and Western Australia to join in the agreement: Hence the agreement was finalized between the Commonwealth and the States of New South Wales, Victoria and South Australia, which will at least enable that portion of the work to proceed. The Commonwealth is prepared to consider any proposal which the States of Western Australia and Queensland desire to submit on the matter and in the meantime the survey of the Kalgoorlie to Fremantle lintis proceeding.

Later:

Senator COLLINGS:
ALP

– On the 2nd August, Senator Allan MacDonald asked the following questions: -

  1. What steps has the Commissioner of Commonwealth Railways taken with a view to alterations to railway locomotives tn enable’ them to burn oil instead of coal ?
  2. Will the Minister, make investigation.-, in order to ascertain the prospects of converting the Trans-Australian railway system from coal to diesel traction?

As promised, I have conferred with the Minister for the Interior, who has now furnished the following informa- tion -

  1. A locomotive for test purposes is at present .being altered and equipped at the Port Augusta workshops and is nearing completion.
  2. This matter was discussed with the Com monwealth Railways Commissioner, who was instructed to make investigations into the advantages of the use of diesel locomotives on the Trans- Australian ‘railway. Approval wa* subsequently given for two diesel locomotives to be obtained to test the suitability of thi, class of traction for Commonwealth railway? purposes. Specifications are now being prepared with a view to advertising for tenders.

page 4132

QUESTION

WOOL

Australia-United Kingdom Disposals Arrangement

Senator ASHLEY:
New South WalesMinister for Supply and Shipping · ALP

by leaver - The war-time ‘ wool purchase arrangement under which the United Kingdom Government acquired Australian wool clips during the seasons 1938 to 1945 provided that, should the sale by the United Kingdom Government of acquired raw wool for use outside the United Kingdom produce a profit over the whole period of the arrangement, such profit would be divided equally between the two governments. An essential feature of the arrangement was that profits, if any, could be determined only at the winding up of the whole scheme. In 1942 the then Prime Minister, Mr. Curtin, in answer to a question in Parliament, gave- an undertaking that the Commonwealth’s share of any such profits would be distributed to wool-growers in proportion to their contribution of wool to the scheme during , its operation. The war-time arrangement- was merged into the wool disposals plan, which is set out in the schedule to the Wool Realization Act of 1945, and forms the pattern for an orderly marketing of the huge wool stockpile concurrently with current clips. The disposals plan, in turn, provides that, should a profit or a loss ultimately arise from the operations of the joint organization in Australian wool, it will be shared or borne equally between the Commonwealth and United’ Kingdom Governments. I now desire to make it quite clear that the Government intends that any ultimate profit which might accrue to the Commonwealth under the disposals plan will be distributed to those growers who supplied wool for appraisement under the war-time arrangement in the proportion that the appraised value of their wool bore to the total appraised value of all wool over the operation of the war-time scheme. In this manner the Government considers that the undertaking given in 1942 will be honoured, and the equity of each wool-grower who supplied wool under the war-time arrangement safeguarded. However, the possibility of an ultimate loss under the disposals plan must be faced, and in the event of such a result there will, of course, be no distribution to growers. The credit balance of approximately £20,000,000 which had accrued in the divisible profits account at the date of the merging of the war-time arrangement into the disposals plan must not be regarded as an indication that ultimate profits would have resulted from the sale by the United Kingdom Government of all acquired wool. The wool sold for use outside the United Kingdom was of much higher quality than that which remained unsold, and heavy losses were inevitable on the remaining- stocks. The stock-pile remaining to be disposed of cost approximately £100,000,000. The credit balance of £20,000,000 in the hands of the United Kingdom Government was utilized to write down the cost of this stock to approximately £80,000,000, and the Australian Government under the wool disposals plan has purchased half of this stock for £40,000,000.. This writing down has the same practical effect on the ultimate profit or loss as if the war-time arrangement had been continued until the whole stock-pile had been disposed of. The stock-pile must be disposed of by the joint organization in conjunction with any portion of new clips that it may be necessary for the organization to “buy-in” to protect prices. It will be the net result of the ultimate sales of wools of both these categories that will be shared between the United Kingdom and Commonwealth Governments, whether it be a profit or a loss. Therefore, any distribution to growerswould only be made from ultimate net profits arising out of the disposals plan, and in the assessment of any such profit a set-off must be made of any losses that may result from the resale of stocks taken in by the Australian Wool Realization Commission operating under the plan. In all the circumstances, the Government believes the late Prime Minister’s promise of 1942 will be given effect in a reasonable and practical manner by the scheme just outlined, whereby any net profit that may accrue to the Government at the end of the disposals plan will he distributed pro rata to those growers whosupplied wool under the war-time arrangement from 1939 to 1945.

page 4133

QUESTION

COLLIE GRAIN DISTILLERY

Senator ASHLEY:
ALP

– On the 1st August Senator Allan MacDonald asked me a question without notice concerning the grain alcohol distillery erected at Collie. I am now in a position to inform the honorable senator that the future use of the distillery, as well as other grain alcohol distilleries erected throughout Australia, is at present receiving consideration. The total cost of the distillery at Collie to the 30th June last amounted to £408,601.

page 4133

RAILWAY STANDARDIZATION AGREEMENT BILL 1946

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator COLLINGS (Queensland-

Vice-President of the Executive Council) [11.24].- I move-

That the bill be now read a second time.

Since the first railway was built in Australia in 1854, the growth of Australian railways has not progressed on any definite national plan, and State boundaries have accentuated the difficulties arising out of the absence of any national railway policy. In Australia to-day we have 6,114 miles of 5-ft. 3-in. gauge, 7,309 miles of 4-ft. 8^-in. gauge, and 13,649 miles of 3-ft. 6-in. gauge railways. The disabilities under which interstate rail transport has functioned has been apparent for very many years, but the war brought home to us very strongly the necessity for a stock-taking, and the need for planning the future of our railway development, particularly to meet our defence requirements. The Government, accordingly, instructed Sir Harold Clapp, who was then Director-General of Land Transport, to prepare a report on the “subject, and as this report has already been presented to the Parliament, I do not propose to repeat now the many reasons contained therein a3 to the necessity for proceeding with this great national project. It is sufficient to say that the report has been widely accepted as one of the most complete and comprehensive statements ever made on this important subject.

As the argument ‘has been frequently advanced in recent years that railways are an obsolete means of transportation, it is, perhaps, appropriate at this stage to direct attention to the important role played by railways in relation to the transport problems associated with the recent war, not only in Australia but iri other parts of the world. In the United States of America 97 per cent, of all troops, 93 per cent, of all army equipment, and 90 per cent, of naval equipment and supplies were transported by rail. The actual figures are astronomical, and include 39,200,000 passenger journeys on special troop trains, and 737,600,000,000 ton miles of defence freight traffic. In Great Britain the figures furnished show that in 1944 there were over 32,000 freight trains used exclusively for war purposes, and, in addition 160,000 freight trains to meet other requirements. On special occasions, such as D-Day, 17,500 special troop and freight trains were run. In all, 3,200 steam and diesel locomotives and 50,000 freight cars were landed in

Europe. It is interesting to note that the Soviet built some 20,000 miles of railway tracks during the war, and that the conversion figures on the GermanRussian front are as follows: - Germany converted. 12,000 miles of 5-ft. gauge to 4 ft. 84 in., and Russia, following the advance of her forces, re-converted the 4-ft. 8-J-in. gauge lines to 5 feet, and also changed a total of 18,000 miles of additional lines to the 5-ft. gauge.

It is clear from the lessons of war that despite the development of other forms of transportation, the railways were the backbone of the transport organization of every participating nation. In Australia we suffered a serious handicap in the transport of men and war materials, due to the fact that there are fifteen breakofgauge points in our railway system. This difficulty was overcome to some degree by locating army service, ordnance, ammunition, engineers’ stores, air force and other depots, at or near the point where the varying gauges met. However, the lose of time and man-power in the transport of stores and equipment was considerable. Some indication of the very serious position which arose in 1943 may be gained from a message sent to the Minister for the Army (Mr. Forde) by the Quarter-Master General of the Army, who had been in conference with other authorities regarding the hold-up of Army equipment. His message included the following words : -

Independent of any action by the Transport Board, New South Wales and Victorian railways obliged refuse all loading to relieve what is now complete blockage due to endeavour force through terminals and transhipping stations more than they can absorb in any circumstances. . . .

And in a later part of the message, he said -

  1. . to help in present emergency have deferred movement approximately two army trains each way per day into Brisbane.

It is not to be wondered at, therefore) that the Minister for the Army, in response to a request for an opinion by Sir Harold Clapp, stated in regard to the proposal to standardize the railway gauges-

The defence aspect of this problem is of vital importance, if, indeed, it does not of itself present a real justification for an undertaking of such magnitude in the field of post-war construction.

I now propose to deal with the argument, that from a defence viewpoint, railways are vulnerable to bombing attacks. All transport facilities are similarly subject to this danger; but it. is interesting to note that the British railways - despite 13,800 bombing attacks and the destruction or damage of 482 locomotives, 13,000 passenger cars, and 16,000 freight wagons - continued to function throughout the war. There were, of course, many delays to traffic, but they were mostly of short duration and usually did not extend beyond a few hours. Since the. advent of the atomic bomb, some attention has been given to the dangers to railway traffic from this source, but I would point out that in the raid on Hiroshima it was found that the railways suffered less than any other public utility, and were again operating 48 hours after the explosion.

One of the most important aspects of standardization of railways is that it will permit the standardization of types of trucks, locomotives, and other railway equipment. In this way, in the event of a national emergency, the whole resources of the railways system could be marshalled for effective use. During the war it was found that the rolling-stock necessary to transport quickly troops required inWestern Australia was not available in that State. Had the railway gauges been standardized, it would have been possible to relieve this situation by the diversion of rolling-stock from the eastern States. Great difficulty was also experienced in Queensland owing to the lack of sufficient locomotives and rolling- stock to handle the immense quantity of equipment necessary in the northern operations. Schemes were hurriedly adopted with a view to minimizing these difficulties, but the delay which frequently occurred may well have brought about national disaster. With the completion of the standardization of railways, a division of troops could be moved in approximately one-third of the time taken under present conditions.

From a defence angle, railway transport has the advantage of operating entirely on fuels locally produced, whereas any interruption of fuel supplies from overseas would completely cripple other forms of transport. The report of the Defence Committee contains the following summary of the relation of standardized railways to defence requirements: -

page 4135

DISABILITIES OF NON-STANDARDIZATION

In war, there are two main factors regarding railway traffic: (a) The inevitable concentration of military traffic; (6) the priority this traffic commands.

The disabilities imposed by nonstandardization fall under three headings -

Transfer Stations

The need to transfer from one system to another imposes delay and, for example, in the case of large airframes, may even prohibit movement by rail because multi-handling of bulky fragile stores is bound to result in unacceptable damage. On the average, this delay amounts to one hour for passengers and one day for goods at each transfer station. Where large scale military movements are involved, those delays can be serious.

Transfer stations entail additional staff and equipment. The staff used for transferring goods during the recent war has amounted at times to 2,000 men. Extensive sidings and other equipment have been provided; some of these will remain throughout peace time, but in the event of another war, others would have to be re-established.

Of more significance is the duplication of service installations imposed by breaks of gauge, and the vulnerability of the ‘transfer stations which require special defence precautions.

Breaks of gauge make for uneconomical use of locomotives, wagons and manpower. Lata running of trains aggravates this waste.

At transfer stations, goods are exposed to damage and pilferage..

Differences in Capacity of Rolling-Stock.

It is rarely possible to transfer directly the whole load of a railway wagon to a wagon of an adjacent system of different gauge. This is due to the differences in the dimensions and the carrying capacity of wagons. Further more, there is often a difference in the power of locomotives, leading to variations in the load that can be hauled.

These disabilities are of great significance where military traffic is concerned, because they rule out the use of pack trains (i.e., military trains of standard composition) which is the normal method of military supply by rail. Furthermore, Services’ consignments are liable to be separated at transfer stations, e.g., goods loaded together in Melbourne for Cairns and possibly for shipment overseas, may arrive not only in different wagons, but in different trains and part may miss the ship. The preparation of documents for such split consignments is complicated and laborious.

Inflexibility

With non-standardization, there can be no common pool of locomotives and rolling-stock from which to meet emergencies. This inflexibility is serious, as in war there is a greatly increased demand reaching peaks in different areas at various times.

page 4136

STRATEGIC CONCENTRATION

The population from which the bulk of Australian Militia Forces must be drawn, will be located in peace in the areas of densest population. These areas arc mostly far removed from the parts most exposed to enemy action. Should, therefore, Australia be threatened .with invasion, considerable movement of troops and material will be necessary over long distances, and these movements may necessarily be concurrent. For example, presuming that the permanent forces have moved to their war stations at an earlier- stage, strategic concentration might involve the movement of major formations from the South-East to the West and .to the North.

A Comparison in Time.

Recent computation of the times taken to move troops by rail over long distances shows that, with standardization, the time required for the movement of a major formation is’ approximately one-third of that required under existing conditions.

Effect of Partial Standardization .on Pool of Rolling-stock.

Some improvement over present conditions would result if only the “ military trunk routes “ were converted to standard gauge, but to provide, say, sixteen trains a day over great distances for appreciable periods, considerable resources of locomotives and rollingstock are needed, and it is unlikely that such resources would exist if standardization were restricted to the military trunk routes.

Effect of Full Standardization

Standardization of lines other than the military trunk routes, would be of direct benefit by providing a pool of standard locomotives and rolling-stock for emergency movements on a large scale, by enabling the development of substitute routes in the event of loss of the main routes by enemy action, and by facilitating the deployment of the forces. Standardization, resulting in the increased speed of movement, may prove an important factor in the defence of Australia. …”

After a full examination of the facts, the Government has come .to the conclusion that the standardization and modernization of our railway systems is an essential defence work. Whilst the project is advanced by the Commonwealth primarily as being necessary for defence purposes, it cannot be overlooked that the economic gains resultant from the adoption of a standardization- of gauges and railway equipment, are tremendous. One of the essential features of transport is that its charges must be kept as low as possible, and in this respect railway traffic has definite advantages over any other, with the exception of sea transport. Each form of transport, whether it be by rail, air, road or sea, has its place in the nation’s economy, and it is hoped that the Australian Transport Advisory Council will exercise due influence in developing each form, in its proper sphere.

The State Ministers for Transport have indicated their whole-hearted cooperation with the Commonwealth in the achievement of this objective, and it is hoped that the plans being now prepared will lead to a better utilization of the various’ forms of transport and so end th, “ cut-throat “ competition which is already apparent iii many areas. Standardization of railway gauges, coupled with modernization,, will enable the number of types of locomotives, passenger rollingstock and goods vehicles, to be reduced considerably. ‘There are at present 143 different types of locomotives, 456 varying types of passenger vehicles, and 766 classes of goods cars. It will be readily appreciated that, by concentrating production on fewer types of modern locomotives and rolling-stock, it would be possible to develop manufacture on the basis of mass-production, which would lead to considerable economy in production and maintenance.

Advantages in respect of defence anr! civilian traffic may be briefly summarized as follows : - Standardization will obviate the necessity for changing trains at ‘present break-of-gauge points, thus eliminating delay in the transfer of passengers and goods, as well as the labour involved. It will enable rollingstock to be used on all lines. This would allow of the most economical employment of the available rolling-stock, by using it for through journeys, thus avoiding congestion, and sometimes empty backrunning from break-of-gauge points. It would facilitate repair and replacement, since all railway workshops, foundries, &c, in the several States would use standard parts. Repair and replacement of rolling-stock would be speedier, cheaper, and. less liable, to interruption by hostile attack, owing to the wide dispersal of the workshops. It would facilitate the marshalling of’ trains for strategic and tactical moves, as a result of the interchangeability of rolling-stock and it would allow of the employment of standard trains in all States for service purposes, thus facilitating staff work and administration generally.

Sir Harold Clapp’s report on the standardization of railway gauges was presented to the Government in March, 1945, and steps were taken immediately to open negotiations with the State governments to ascertain their views on the matter. Following a conference of Transport Ministers in May, 1945, the conference of Commonwealth and State Ministers held in August of last year, resolved, inter alia -

That the conference declares that the work of standardizing Australia’s railway gauges should he proceeded with as being essential to national defence and development.

The matter was again submitted to a Conference of Commonwealth and State Ministers in January, 1946, when it’ was decided that the Commonwealth should bear half the cost of the work, and the ma.inland States should share the remainder on a per capita basis. Negotiations with the States were con;tinued in order to work out the details of an agreement. Whilst a great deal of progress was made, the negotiations finally broke down, because of the objections to certain sections of the proposals by representatives of the States of Queensland and Western Australia.

At a conference between the Commonwealth and State Transport Ministers in May of this year, when it was apparent that no further progress could be made towards the completion of an agreement to include all of the’ States, the Minister for Transport (Mr. Ward) announced that he would recommend to the Commonwealth Government that negotiations continue with those States which were prepared to cooperate. Having obtained the approval of the Government to this recommendation, he proceeded to confer with the Premiers of Victoria and South Australia regarding the conversion of their railwaysystems to the.4-ft. 8-i-in. gauge. Agreement was reached on all points, and the proposals were then submitted to- the New South Wales Government. The last mentioned Government, which has throughout the whole of the negotiations adopted a most co-operative attitude, agreed to the draft plan, including payment of its share on a per capita basis of half of the cost involved in standardizing the railway gauges of Victoria and South Australia, the Broken Hill-Cockburn line in New South Wales, and the construction of a new line from Bourke to Barringun. This general agreement between the Commonwealth and the three States mentioned was the subject of further detailed discussion, as a result of which the agreement now before the Parliament was reached.

It is to be regretted that the States of Queensland and Western Australia are not included in this plan. It should be made clear that this is in no way due to any fault of the Commonwealth. The door is still open for further negotiations with both of these States; and it is hoped that they will recognize before long the necessity for, and the advantages accruing from, the adoption of a standard gauge. In the meantime, in the case of Western Australia, the survey of the Kalgoorlie-Fremantle line, which was commenced some time ago as a result of financial assistance afforded by the Commonwealth, will not be interrupted.

The scheme of administration provided by the agreement is that the general control and supervision of the work will be entrusted to a board comprising a director-general, a director of mechanical engineering, a director of civil engineering, a director of transportation, and a director of finance. The board and each individual member will act in the closest collaboration with the State railway authorities who will carry out, on behalf of the Commonwealth, the work on projects to be approved by the board in accordance with the agreement. To obviate any undue delay arising through differences of opinion between the States, and between the States and the board, provisions is made for a Railways Council comprising the Commonwealth Minister for Transport, the Minister administering the Commonwealth Railways, the Minister for ‘Transport, in New South’

Wales, the Minister for Transport, Victoria, and the Minister for Railways, South Australia.

It will be observed that provision is made that any question arising as to the order in which the standardization works are to be carried out shall be determined by agreement between the Commonwealth and the States. The general procedure will provide that the States will requisition the Commonwealth for authority to proceed with certain works to a specified amount, and if such works, and the amount applied for, are reasonable, and in accordance with the agreement, a project order will he issued and the necessary finance will be made available. A further provision to ensure that standard plans and designs shall be established is contained in the agreement, and in such cases, the States and the Commonwealth collectively will determine such standards. In brief, the agreement is framed on the broad basis of the fullest cooperation between the Commonwealth and the States, and on the maximum degree of collaboration between the experts of the Commonwealth and the. States to ensure that everything essential to the establishment of standard gauge railways, and to their safe and efficient operation, will be accomplished. -

Regarding the financing of the project, the early negotiations disclosed that the States, whilst appreciating the necessity for standardizing railway gauges, were reluctant to accept the responsibility for providing funds for a project which was primarily designed to meet defence needs, although its economic advantages were fully recognized. It should be understood that in this agreement the basis of finance agreed upon at the conference of Commonwealth and State Ministers of January, 1946, has been maintained and that the States of New South Wales, Victoria and South Australia, have not sought any material departure from that basis. At no stage was it argued by the Commonwealth that the standardization of railway gauges would be pressed to the detriment of other great national works, such as housing, water conservation, &c, to which expenditure the States are already committed. Consequently, the Commonwealth agreed to an arrangement to finance the undertaking, which would minimize the burden on the States, particularly in the early years. Moreover, it should be realized that the States had already determined upon large programmes of railway rehabilitation works, and these may now be put in hand with full knowledge that the funds for standardization will be available and thus enable all the work to be co-ordinated and thereby the maximum advantage to the nation will be achieved. The principal features of the financial provision are as follows : -

  1. Total cost for the complete plan for New South Wales, Victoria and South Australia is £50,870,696.
  2. Cost of new locomotives and rolling stock is debited 25 per cent, to standardization funds and 75 per cent, to the State concerned.
  3. Cost of standardization is shared equally by the Commonwealth andby the States.
  4. The States’ contribution will be made in annual payments extending over 50 years.
  5. Cost of related works, e.g. work which, although related, arenot caused by standardization, are borne by the State concerned.
  6. States’ share of standardization works is distributed over the three States on a per capita basis of population- determined annually in accordance with the statistician’s figures.
  7. The cost of the North-South line is tobe borne by the Commonwealth.

Railway officers, both Commonwealth and State, have a very heavy responsibility to undertake in carrying out the projects’ set out in the agreement. They have earned our appreciation of their splendid war effort, and we look to them again to prove that this great task is not beyond them. I commend the bill to the Senate and trust that the Parliaments of New South Wales, Victoria and South Australia will not delay in passing complementary legislation ratifying the agreement so that immediate steps may be taken to commence this great national work, that means so much to the future welfare, safety and prosperity of Australia and its people.

Debate (on motion by Senator Leckie) adjourned.

page 4139

RAW COTTON BOUNTY BILL 1946

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

Bill (on motion by Senator J. M. Fraser) read a first time.

Senator J M FRASER:
Minister for Trade and Customs · WESTERN AUSTRALIA · ALP

.-I move-

That the bill be now read a second time.

The purpose of the bill is to authorize an extension of the bounty on Australian production of raw cotton for five years from 31st December, 1946, in an amount sufficient to guarantee growers an average net return of15d. per lb. of raw cotton, above the grade known as “ strict good ordinary”, produced from the 1947 crop and thereafter until 31st December, 1951. This net return will include any net return to growers from sales of byproducts of raw cotton such as linters, cotton seed oil and cotton seed meal. The total amount of bounty payable under the existing Raw Cotton Bounty Act 1940- 1941 in any one year is limited to £170.000, and any portion thereof’ unspent in any year is available for bounty payments in later years in addition to the £170,000 provided for each of such years. The existing raw cotton bounty legislation providing a guarantee of 15d. per lb. of this high grade raw cotton will expire on 31st December, 1946. Early adoption by the Parliament of the present bill is necessary in order to encourage re-establishment of the cottongrowing industry in Australia on a sound economic basis. In its report of the 15th October, 1945, at the conclusion of the public inquiry, the Tariff Board made the following principal recommendations : -

  1. That Bounty be granted for a period of two calendar years from 1stJanuary, 1947, at a rate having the same effect as a prewar basic rate of 31/4d. per lb. of rawcotton of grades higher than “ strict good ordinary “ grade when Liverpool spot-price of American middling grade raw cotton7/8in. staple is6d. sterling per lb., varying conversely according to fluctuations in the Liverpool spot price, with a maximum limit of old. per lb. bounty. Half rates to be paid on raw cotton of strict good ordinary and lower grades.
  2. The total amount of bounty payable in any one year to be limited to £170,000 without any carryover of unspent balances.

The production of raw cotton in Queensland has declined from an annual average of 10,127 bales each of 500 lb. during the ten-year period 1935-44 to 1,305 bales for the 1945 cotton season. Such retrogression is mainly due to the extreme shortage of man-power and a change-over urged by the Commonwealth Government from cotton to food production. An incentive tothe change-over was the highprices guaranteed for dairy and other food products. During the tenyear period mentioned, consumption of cotton in Australia by spinners increased from about 15,000 bales each of 500 lb. in 1935, to a peak of 64,348 bales in 1943, falling to 54,751 bales in 1945. Consumption by industries other than spinning mills, for example, manufacturers of bedding, upholstery, paddings, wadding, absorbent cotton wool, and other products, now represents about 5,000 bales annually, mainly low-grade very short-staple cotton not suitable for general spinning requirements. It is estimated that about 60,000 bales of raw cotton will be consumed by local spin- ners during 1946, while about 5,000 bales will be required for other industrial purposes.

Apart from certain comparatively minor modifications, the basic rate of bounty recommended by the Tariff Board, that is, 31/4d. per lb. of high grade raw cotton, is the same as that originally recommended by the board in November, 1933, and subsequently confirmed on several occasions. This was regarded by the Government as too low to be of any real assistance to the cotton-growing industry, and therefore has never been accepted by the Parliament. If the Tariff Board’s recommendation were adopted, the result would probably be that most growers would abandon the industry as, in the event of any considerable decrease in overseas cotton prices, the returns to growers from sales of raw cotton in competition with imported cotton would be insufficient . to enable them to carry on. Abandonment of the industry would involve the closing of ginneries and a cotton seed oil mill in which £160,575 has been invested. This plant is owned by the Queensland Cotton Board, which is a co-operative growers’ organization. The by-products of raw cotton are of great economic value. A crop of 15,00.0 bales of raw cotton would result in the following principal byproducts: - 820 tons of edible cotton-seed oil, largely used in the production of bakers’ shortening fats; and 3,000 tons of high protein cotton-seed meal for stockfeeding, particularly dairy cattle during periods of drought.

Honorable- senators may recall that the raw cotton bounty legislation passed in- 1940 was associated with undertakings given by the Queensland Government that steps- would be taken to improve efficiency by - (a) converting the industry from dry farming to irrigation by the most economic means for each selected locality - in this connexion, cotton-growing under irrigation would probably result in a large, increase of yield per acre with .considerable reduction in production cost and would also improve the quality of raw cotton produced - (&) encouraging growers generally in the adoption of improved cultural practices; and (c) accelerating scientific work on plantbreeding, measures to combat insect pests, plant diseases, soil tests and new problems likely to be encountered with production under irrigation.

Since the initiation of the cotton production stimulation programme of 1939-40, the Queensland Government has spent the following sums up to 30th June, 1945 :- £291,000 on investigations and research directly related to cotton production, assistance to growers and provision of irrigation facilities, including pumping plants; £49,000 on water conservation and irrigation projects; and £17,000 on investigations on general irrigation and construction programme carried out mainly in the cotton-growing areas, making a total of £357,000. Proposed irrigationworks comprising 30 weirs, to be built during the immediate post-war period, are estimated to cost a further £296,000. Full implementation of the undertakings was prevented by war conditions beyond the control of the Queensland Government. The causes were mainly shortages of man-power and materials. Prior to 1941, the bounty on raw cotton was on a gradually reducing scale related to a Liverpool spot price of 6d. sterling per lb. and fluctuating conversely in accordance with changes in that price. This arrangement was not regarded by grower* as offering any real sense of security, whereas the provision- of a bounty in an amount sufficient to provide a guaranteed net return for high grade raw cotton, tends towards achieving stability and gives some encouragement to’ farmers to incur capital expenditure on irrigation plants and other equipment necessary for improved methods of cultivation.

The Liverpool cotton exchange closed on the 21st March, 1941, and is not likely to reopen during the life of the present United Kingdom Government, which has a further four years’ tenure of office. The New York cotton exchange quotations are not now regarded as suitable as a base for bounty linkage because export sales are mainly effected in the United States of America on the average prices of the ten southern cotton markets, less an export -subsidy of approximately 4 cents per lb. The resultant export prices therefore differ from New York quotations.

Under existing conditions with selling prices of Australian-grown raw cotton at 18d. per lb. basis c.i.f. spinners ports, as fixed by the Prices Commissioner, a crop of 5,000 bales or higher would reduce overhead expenses associated with ginning, classifying and handling, to such a degree that the net return to growers would most likely be 15d.. or more per lb., thus relieving the Government of the payment of bounty. It may be possible to obtain within the next few years an annual production of 20,000 bales of raw cotton, thereby reducing further the costs of production with a corresponding increase of the net returns to growers. The Australian price of overseas raw cotton comparable with that produced in Queensland is now somewhat higher than the price at which the Prices Commissioner has authorized purchase of the Queensland crop, namely, 18d. per lb. basis c.i.f, spinners ports. Raw cotton is admitted free of duty. In accordance with the existing prices stabilization scheme, both the Australian and the imported raw cotton are supplied to spinners for making yarns for hosiery, for weaving, and for certain high quality cordage, also’ for the manufacture of combed yarns, at l4£d. per lb. There is therefore good reason for the continuance of bounty assistance on raw cotton produced in Australia- at the existing level as now proposed. The possibility of any considerable decrease of the price of imported raw cotton appears to be remote for three or four years at least. There is at present a world shortage of desirable types of raw cotton suitable for general spinning requirements with resultant high prices, and the Government of India, which is the second largest cotton producing country in the world, has prohibited the export of raw cotton of 13/16-in. staple or longer.

I suggest that the extension of the period of operation of the bounty as now proposed should be recognized by growers and the appropriate State authorities as affording an excellent opportunity for further development of plans with the express object of increasing efficiency and reducing production costs. In this connexion, overseas experience proves clearly that production costs can be substantially reduced by producing raw cotton under irrigation. In the United States of America, Egypt, the Sudan, and several other countries, the yield per acre under irrigation has always been at least three times as high as the . yield under dry-farming conditions.- Similar results have been consistently achieved in the comparatively small irrigated area in Queensland. Experience over many years in the cotton-growing districts of Queensland has proved that rainfall and other important climatic conditions are too variable and unreliable for the consistent economic production of raw cotton under dry-farming conditions, except in a comparatively few small areas. The Queensland Government fully realizes this fact, and it is hoped that the next year or two will witness a very marked advance in irrigation developments. Picking or harvesting costs in Australia are- high, representing about 1.64d. per lb. of seed cotton equivalent to approxi mately 4.7d. per lb. of raw cotton. The Queensland Department of Agriculture and Stock and the Queensland Cotton Board have each purchased a mechanical cotton-picking machine -from the United States of America. A light picker of another make recently developed in that country has been ordered by the Cotton Board. The latter unit, which is designed for independent operation by means of a tractor, is expected to arrive in Australia within the next few months. Picking machines offer the prospect of reducing picking costs which are at present the highest of the costs involved in production of seed cotton. They have given most promising results in trials and will be of particular value in harvesting irrigated crops where the yield exceeds 300 lb. of seed cotton per acre. The greater concentration of the farms under irrigation will tend to facilitate mechanical harvesting. The cottongrowing industry is most worthy of encouragement, and is of a considerable potential value to the Commonwealth. Sufficient encouragement should be given to the industry to enable the possibilities of production under irrigation to be thoroughly explored and demonstrated. I commend this bill as one which merits favorable consideration.

Debate (on . motion by Senator COOPER’) adjourned.

page 4141

TRADESMEN’S RIGHTS REGULATION BILL 1946

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

page 4141

AUSTRALIAN SOLDIERS’ REPATRIATION- BILL 1946

Bill received from the House of Representatives.

Standing and Sessional Orders suspended..

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

Second Reading

Senator CAMERON:
PostmasterGeneral · Victoria · ALP

f 12.6] . - I move -

That the bill be now read a second time.

This bill is for the purpose of applying to service pensions under the Australian Soldiers’ Repatriation Act the modifications of the means test which are under consideration in respect of pensions under the Invalid and Old-age Pensions Act. Service pensions-are equivalent to invalid and old-age pensions for ex-members of the armed forces, as distinct from general war pensions. In certain respects the provisions are more liberal than those of the scheme for the general community. For example, if granted on the ground of age, the member is admitted at the age of 60 years, or in the case of a woman member, at the age of 55 years - in each case five years earlier than is the case with ordinary ‘ old-age pensions. If the member be eligible on the ground of invalidity, his wife and children, up to four in number, may be granted service pensions also. There’ are other advantages in favour of service pensioners,’ but the general character of the provisions is similar to that of ordinary invalid or oldage pensions. Consequently,’ if certain material principles of those pensions be altered, the alterations must be reflected in the service pensions scheme. Three main features of the Invalid and Old-age Pensions Bill 1946 were, first, the raising, from 12s. 6d. a week to £1 a week, of the amount of income which an invalid or old-age pensioner may have without his pension being affected ; secondly, the raising of the property bar from £400 to £650; and, thirdly; the elimination of certain items of property from consideration in the assessment of the rate of pension. The income and property provisions are common to both schemes,, and, therefore, the three provisions to which I have referred must apply in respect of service pensions. The first provision, namely, the raising of permissible other income from 12s. 6d. to £1 a week, requires no amendment of the Australian Soldiers’ Repatriation Act, as sesction 87 of the act is so constructed that it takes care of this point, whatever’ alteration may be made from time to time. The other two provisions which relate to property necessitate amendment of the act. It is proposed to amend section 89 to raise the amount of £400 specified therein to £650, and to provide that deductions in respect of each £10 of property shall he on the same line* as provided by the amendment to section 24 of the Invalid and Old-age Pension* Act, that is, a certain rate of deduction for property over £50 but not over £400. and a higher rate of deduction for the portion of property in excess of £400. The only difference is that, as service pension provisions are expressed in fortnightly amounts, as against annual amounts in the invalid and old-age pensions legislation, the deductions are expressed as so much a fortnight. The effect, however, is almost exactly the same with both schemes. The elimination of certain items of property involves an amendment of section 90, and the amendment provided in the bill is identical with the similar provision in the Invalid and Old-age Pensions Bill 1946. At the 30th June, 1946, the numbers of service pensions in force were: - Members, 9,052; wives and children of incapacitated members, 2,645 ; widows and children of deceased members, 1,335; total, 13,032. The annual liability was £846j833. It is estimated that the modifications to the means test will increase the annual liability in respect of service pensions by approximately £55,000. It will be of interest to honorable senators generally, and particularly to those who, with myself, served in the South African war, to learn that the figures I have given include 602 veterans of that war, 149 wives of such members, and still a few children. The proposed amendments to the act are a logical corollary to the widening of the invalid and old-age pensions legislation, and lam confident that the bill will have general support from honorable senators.

Debate (on motion by Senator

Collett) adjourned.

page 4142

COMMONWEALTH ELECTORAL BILL 1946

Bill received from the House of Representatives.

Standing and Sessional Orders suspended. ‘

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

Second Reading

Senator COLLINGS:
Vice- 1’ res id en t of the Executive Council · Queensland · ALP

– I move -

That the hill be now read a second time.

This is a short and simple measure designed to modernize to a degree the Commonwealth Electoral Act and, in the main, its clauses are self-explanatory. It represents an overdue recognition of cer-‘ tain aspects of political .campaigning that have developed since the principal act was amended in 1918. First, the bill provides that a candidate’s allowable expenditure in a Senate election shall be increased from £250 to £500 and, in a House of Representatives election, the candidate’s allowable expenditure will be increased from £100 to £250. The Government considers that these increases of permissible expenditure on elections are necessary in order to bring about an equitable adjustment in the amount that a candidate is called upon to expend in present political contests at federal elections. The existing rates of allowable expenditure are those which were contained in. the original Electoral Act passed by’ the Commonwealth Parliament in 1902, and it would be fantastic to believe that the amount then considered sufficient to conduct a campaign would be viewed in the same light in present-day circumstances. It is interesting to note in this connexion that in 1901 the total number of people in the Commonwealth eligible to vote was 977,993 as against 4,466,637 in 1943, and the following table will indicate the growth and spread of voting in’ each of the States during that period : -

The growth and spread of population has made the matter of organizing political campaigns more difficult and vastly more expensive. It will be agreed that money spent in election campaigns on goods and services in the earlier years of Commonwealth parliamentary contests went considerably farther than is the case at present and, on this basis alone, a very substantial increase of allowable expenditure is necessary to ensure that every candidate to-day should have a reasonable opportunity to contact the whole of his electorate in order to press his. candidature. The second feature of this bill provides for’ some alteration in the wording of section 146 of the Electoral Act. This is largely due to the modern development and use of broadcasting to an extensive degree in political, contests. Broadcasting has been found to be almost indispensable in the conduct of a campaign and is, , as all honorable senators will recognize, an expensive but effective method of campaigning. Further, it is recognized that the use of telephones has become indispensable in the modern technique of electoral campaigning. In recognition of these two factors, it is proposed to insert in section 146 of the act authority for the expense incurred in radio broadcasting, and the temporary installation and maintenance of telephones at a candidate’s committee rooms, as a permissible expense. Another alteration of this section of the act is provided for in that the word “ places “ has been substituted for “ halls.” in the item authorizing expenditure in relation to public meetings. This amendment will have the effect of making this item applicable to all places, not merely halls, in respect of which expense is incurred in connexion with the holding of political campaign meetings. Honorable senators will appreciate that the proposed new section 146 does not differ materially from the existing section except that it revises and modernizes the items considered to be almost indispensable in election organization, whilst it leaves intact all those other items of expenditure that have been recognized in the act previously.

The third purpose of the bill is to incorporate in the Electoral Act, so as to ensure their, continuity in relation to Commonwealth elections and referendums, those provisions in regard to electoral posters which have been in force since 1943, in pursuance of regulations made under the National Security Act. The purport of these provisions is, first, to prohibit the exhibition of posters intended or calculated to affect the result of any election or referendum, of a size exceeding 60 square inches and, secondly, to make it an offence, for , any person to write anything of any electioneering nature directly on any roadway, building, etc. The Government considers that the continued application of these provisions concerning the size of posters used in Commonwealth elections and referendums is completely justified at the present time, because of the shortage of materials used in such posters and signs. It may be interesting to mention at this point that, in the last elections for the House of Representatives, held in 1943, there, were 345 candidates, all of whom used signs and posters in pursuance of their candidature. If we consider one type of advertising alone, namely, the commonly used 6 feet by 3 feet calico signs on the basis of 50 signs for each candidate, 40,000 yards of calico which is in short supply would be required.

It will be generally agreed that the use of such an enormous quantity of material that is in short supply for a brief election campaign, after which it would be of no use, cannot be justified. Furthermore, it would entail the use of a considerable amount of timber which is also in short supply. Newsprintsupplies also are not as prolific as to justify an alteration of the conditions laid down for the last general elections. There will be general agreement that the time has not yet arrived when we can revert ‘to pre-war conditions in connexion with electoral advertising. The continuation of these restrictions will not give any particular advantage to any party or candidate, and it is considered that their retention will be in the best interests of all concerned. I commend the bill to honorable senators and urge its speedy passage.

Senator McLEAY:
Leader of the Opposition · South Australia

– I support the bill.

Question resolved in the affirmative.

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

page 4144

BANKRUPTCY BILL 1946

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator McKENNA:
Minister for Health and Minister for Social Services · Tasmania · ALP

– I move -

That the hill he now read a second time.

The object of the bill is to meet certain difficulties which have arisen by reason of the recent disclosure that the Bankruptcy Act 1924-1945 does not make adequate provision in two important matters. In the first place, distribution of dividends and eventual winding-up of a bankrupt’s estate cannot proceed to completion until the bankrupt has filed a statement of his affairs. In a -recent case, however, a bankrupt failed to file such a statement and has disappeared, and cannot now b« traced. Clause 3 provides for the insertion of a new section in the act empowering the court, where a bankrupt refuses or fails to file a statement, to order distribution to proceed on such terms as the court thinks fit. In the second place, the effect of a recent decision of the Judge of the Federal Court of Bankruptcy is that the act, as it stands, does not authorize an official receiver to assume the office of trustee upon the death, resignation, or removal of a trustee appointed under Part XL or Part XII. of the act. Since the act came into operation in 1928, it has been the practice of official receivers, on the construction placed upon the relevant provisions of the act prior to the recent decision, to assume- the office of trustee of deeds of assignment under Part XI. cf the act, and of deeds of arrangement under Part XII. of- the act, upon the death, resignation or removal of such a trustee. In the belief that they were so authorized by the act, official receivers acting as such trustees have sold and transferred many properties, and have purported to give good title in respect of those sales and transfers. It is proposed, bv clause 4, to insert a new section in Part XI. of the act to provide that, if a vacancy occurs in the office of a trustee under that part, the court may, on a report by the registrar or the application of the debtor, a creditor or the official receiver, appoint the official receiver to act as trustee, or order that a meeting of creditors be called to appoint a new trustee. The proposed section also empowers the Court to appoint the official receiver to act pending the appointment of a new trustee by a meeting of creditors. The necessary provisions to make the new appointment, retrospective to the date of the vacancy, and the vesting of the property, the subject of the deed, in the official receiver or other new trustee are a.’so included in the proposed new section. Clause 5 provides for the insertion of a new section in Part XII. of the act to make similar provision in relation to deeds of arrangement under that part. Clause 6 makes the necessary provision for validation of transactions effected by official receivers purporting to act in’ pursuance of. their powers as trustees prior to tie coming into operation of the proposed amendments. The amendments proposed to be made by the bill are designed only to ensure that complete provision is made for the efficient working -of the machinery provided by the- act. T commend the measure to the Senate.

Senator McLEAY:
Leader of the Opposition · South. Australia

– I support the bill.

Question resolved in the affirmative.

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

page 4145

TUBERCULOSIS BILL 1946

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator McKENNA:
.Minister for Health and Minister for Social Services · “Tasmania · ALP

– I move -

That the bill he now read a second time.

The object of the bill is to amend the Tuberculosis Act 1945 bv substituting a new section for the- existing ser-tion fi. which provides for the payment of special allowances to sufferers from tuberculosis and their dependants. The Tuberculosis Act was passed by the present Government in October, 1945, to give effect to its plan to strengthen the attack on tuberculosis by means of improved diagnostic and after-care- facilities, treatment in suitable hospitals and the payment of special allowances to sufferers and their dependants.

With a view to encouraging the States to establish additional diagnostic facilities, provision was made under section 4 for the Commonwealth to subsidize, on a fi for £1 basis, the expenditure of the States in the maintenance of diagnostic facilities such as clinics, dispensaries and X-ray equipment, established after the commencement of the act. For this purpose the Commonwealth has provided £50,000 per annum for distribution amongst the States as determined by the Minister. Under the same section, a further £50,000 per annum has been provided for payment to the . States, also on a £1 for £1 basis, for the maintenance of after-care facilities, on the same basis as for diagnostic facilities.

Provision has been made in section 5 under, which the Commonwealth will pay to the States a subsidy of 6s. per daily occupied, bed in approved tuberculosis hospitals established after the commencement of the act. This payment is subject to the condition that no charge is made for accommodation, or treatment, in the public wards of the hospitals. Section 6 of the act as it now stands provides for the. payment of special allowances to sufferers from tuberculosis and to dependants of sufferers, provided such pay-, ments will assist in preventing the spread of tuberculosis, or promote the better treatment of the disease. For this purpose the Government set aside the sum of £250,000 per annum. In attempting to give effect to the objects of the section however, policy and administrative difficulties have arisen, because there is no power, such- as is provided in sections 4 and 5. to make grants to the States for this purpose. 1

It is now proposed to amend the act by repealing section 6 and substituting a new section whereby the Commonwealth will make available to the States £250,000 per annum, to be distributed as determined by the Minister. This will bring section 6 into line with sections 4 and 5 of the act. The money will be payable to the States upon the condition that it is applied by the States during the year in which it is received, in making payments to, or in respect of, sufferers from tuberculosis, or the dependants of such sufferers, with the objects of (a) encouraging such sufferers to refrain from working and to take treatment; (6) minimizing the spread of tuberculosis; and (c) promoting the better treatment of tuberculosis.

The States, owing to their constitutional powers, have a large share of responsibility towards tuberculosis, and this Commonwealth grant should make a valuable contribution towards the problem, particularly when it is supplemented by existing State agencies. The States will be entirely responsible for the distribution of this money and will select the people to whom payments should be made. The proposed new section 6 contains a special provision to the effect that payments made to tubercular sufferers and their dependants by the States, whether from moneys provided by the Commonwealth under the section or from their own moneys, will not be treated as income in the hands’ of the recipients for the purpose of applying the means test under the Invalid and Old-age Pensions, Widows’ Pensions and Unemployment and Sickness Benefits Acts. This provision will ensure that these moneys will be applied fully to the worthy objects set out in the new section without in any way affecting pensions and benefits payable under the acts to which I have referred. A minor amendment has been made to section 7 of the act by the addition of the words “ by the Commonwealth or the Treasurer “ after the word “ Payments “. This has the effect of clarifying the section. The bill represents a valuable contribution to the solution of the problem of tuberculosis.

Senator. McLEAY (South Australia -

Leader of the Opposition). [12.34]. - The

Opposition supports the bill-

Question resolved in the affirmative.

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

page 4146

IMMIGRATION (GUARDIANSHIP OF CHILDREN) BILL 1946

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator COLLINGS:
Queensland VicePresident of the Executive Council · ALP

.- I move-

That the bill be now read a second time.

The billis intended to serve a dual purpose, namely, to enable the Minister for Immigration to continue to act as the legal guardian of overseas children who remain in Australiaafter the National Security (Overseas Children) Regulations cease to have effect, and to enable the Minister to act as legal guardian of all children who will be brought to Australia in future as immigrants under the auspices of any governmental or nongovernmental migration organization. Under the National Security (Overseas Children) Regulations legal guardianship of British children, who were evacuated to Australia in 1940 for the duration of the war, was vested in the Minister for Immigration and through him in the various State Child Welfare Departments. The children were placed by those departments with custodians who accepted the responsibility for their welfare and care. Originally, 577 children came to Australia under the overseas children scheme and the majority have now returned to the United Kingdom. There are, however, over 100 children still in Australia. Some are remaining temporarily to complete educational courses or apprenticeships, andothers permanently. The National Security (Overseas Children) Regulations will cease to have effect after the 31st December, 1946, and this bill will enable the same arrangements as were made under those regulations to be continued in respect of the overseas children remaining here.

The bill also covers children who will be brought to Australia under the auspices of any governmental, or nongovernmental, migration organizations when migration is resumed. The overriding responsibility of the Commonwealth in respect of all migrants, including the applications of its social service legislation, applies in greater force, perhaps, to children. It is felt that the Commonwealth Government in encouraging and financially assistingchild migration by way of contributions towards passage money and payment of child endowment to organizations caring for the children accepts a responsibility which does not end with the children’s arrival in Australia. It is, therefore, incumbent on the Commonwealth to ensure that the child migrants are properly accommodated and cared for until they reach 21 years of age. The only way in which this can be achieved is by vesting in the Minister for Immigration an overriding legal guardianship in respect of all such children. While under the provisions of the bill the Minister will be the legal guardian of immigrant children, it is proposed to utilize the services of the State authorities in the same manner as has been done with overseas children under the National Security (Overseas Children) Regulations. State authorities may, under delegation from the Minister, exercise control and supervision of the children who will be cared for under the auspices of voluntary migration organizations introducing them, such as the Fairbridge Farm schools, Dr. Barnardo homes, Northcote Children’s Farm school and church bodies. These organizations can be appointed custodians of the children brought out by them. It will be observed that the proposed legislation does not apply to immigrant children who come to Australia with, or for the purpose of living under the care of, their parents or relatives. At a conference held in’ April, 1946, attended by representatives of the Commonwealth and States, it was agreed that there was need for uniformity of procedure with regard to the legal guardianship of child immigrants and that the Commonwealth should assume responsibility for their guardianship until they attain the 1age of 21 years. The State authorities agreed to exercise control and supervision over these children as delegates for the Minister for Immigration. This bill will enable this to be done.

Senator McLEAY:
South AustraliaLeader of the Opposition

– The Opposition supports the bill.

Question resolved in the affirmative.

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

page 4147

FORESTRY AND TIMBER BUREAU BILL 1946

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator COLLINGS (Queensland-

Vice-President of the Executive Council) [12.42].- I move-

That the bill be now read a second time.

The bill is designed for the purpose of extending the functions of the Commonwealth Forestry Bureau to enable it to advise on matters of timber supply. The war and its aftermath have decisively demonstrated Australia’s present inability to meet all our essential timber requirements from our own resources and have given prominence to well-founded doubts as to how long even our present standards of timber production can be maintained. A planning and co-ordinating authority is required to investigate the position and advise the Commonwealth Government with regard to forest resources and timber production, and imports and exports for Australia as a whole. Under the National Security (Timber Control) Regulations the Commonwealth Timber Controller had wide and necessary powers in relation to timber which was always in short supply. As the war position eased, it was possible to relax many restrictions on the use of timber, but the planning and co-ordinating side of the work of timber control has had to be continued to provide for the requirements of the many activities sponsored by the Commonwealth Government in connexion’ with housing, public works programmes, &c, and to arrange as far as practicable the equitable distribution of available supplies between the States.

The Director-General of the Common- wealth Forestry Bureau has for some time held the appointment of Controller of Timber under the National Security (Timber Control) Regulations and timber control was transferred from the Department of Works and Housing to the Department of the Interior as from the 1st July, 1946. Theplanning and co-ordinating service developed during the war has the confidence and cooperation of State forestry authorities and local saw-milling and timber importing interests throughout the Commonwealth.

The logical development to meet peacetime requirements is the inclusion of advisory functions with regard to these matters in a Commonwealth Forestry and Timber Bureau. A definition of -timber is included in clause 3. Other amendments to the, principal act are the change of the name of the Forestry Bureau to the “ Forestry and Timber Bureau “ and the designation of the Inspector-General of Forests to “Director-General, Forestry and Timber Bureau “. Clause 5 of the bill details the additional functions relating to timber which it is proposed to place with the present Forestry Bureau. The following are the reasons for such transfer: -

  1. Collecting timber statistics and information : Timber supply is proving a limiting factor in the rate of development of certain post-war projects of national importance, such as housing, public works programme and standardization of railway gauges. Factual data regarding production, stocks, imports, exports and interstate movement of timber recorded from month to month is needed to serve as a basis for planning. During the war it has been demonstrated that this information can be collated and analysed by a small staff without imposing burdensome returns on industry.
  2. Formulating programmes and advising on matters relating to the supply, production and distribution of timber in Australia : Although the forests of Australia for the most part are under the control of the States, certain factors on which the successful exploitation by the saw-milling industry of any forest region are dependent, are controlled by the Commonwealth. Accessible forests have been heavily over-cut, both before and during the war. It is now necessary to go further afield for supplies of logs, if the rate of production is to be maintained. This may mean either higher prices or subsidies. Problems of this nature should be dealt with regionally, and should be investigated and reported on before the supply position becomes acute and dislocation of industry develops. Constructive planning by State forest authorities and a Commonwealth organization working in collaboration are required. In order that such problems may be considered in correct perspective, a knowledge of current production and consumption throughout the Commonwealth, with due allowance for imports and exports, is necessary, and this can be supplied only by a properly constituted and sufficiently staffed timber and forestry bureau. A second important factor having a large influence on the economy of working the forests of any region is access, and present indications are that the Commonwealth may have to assist in the provision of funds for any major programme of road or tramline development. State forest authorities are already asking what the Commonwealth intends to do to extend the zone of supply in certain States to meet post-war demands, and at present there is no authority which can reply to them.
  3. Formulating programmes and advising on the importation into Australia of timber: In the future there will be intense competition for softwood supplies from all countries having exportable surpluses. It is evident that timber will occupy a prominent place in international trade agreements and that in addition to control exercised through tariffs, considerable planning and co-ordination will be needed to regulate the quantities of timber to be imported into the main consumingcentres and to ensure an equitable distribution of available imports in national interests, with due regard to the stabilityof the local saw-milling industry.
  4. Formulating programmes and advising on the exportation from Australia of timber: Despite the fact that Australia will need to import nearly onethird of its total timber requirements after the war, there is scope for-, the development of a valuable export trade in high quality hardwoods and figured cabinet woods. The extent to which hardwood exports will be possible will depend largely on our success in organizing the import of satisfactory supplies of general utility softwoods. Australian hardwoods properly marketed will command a high price in overseas countries, in many cases more than double the value of equal quantities of timbers we may import to replace them for building purposes in Australia. Moreover, a number of Empire countries such as New Zealand, Ceylon, South Africa and even the United Kingdom will be seriously embarrassed unless they can obtain hardwood supplies from Australia for public works, railway requirements and special industries.

    1. Carrying out investigation and research into supply, production, distribution and use of timber: Reserves of good quality timber remaining in the forests of Australia are not sufficient to maintain the saw-milling industry at its present level of production indefinitely, and it is important, therefore, that new industries requiring timber as a raw material should be considered in relation to the general problem of timber supply. For example, it is doubtful whether Australia can afford to extend the use of mature logs of good quality for the manufacture of such products as paper and wallboards, when these commodities can be made from thinnings, poor quality logs and saw-mill waste. At present the Commonwealth is directly concerned in any new projects of thisnature, as approvalis required to the raising of capital, the importation of machinery and the erection of new works, but evenunder pre-war conditions the Commonwealth was directly concerned insofar as such projects required either bounties or tariff protection, before being started.

The proposed additional powers and functions of the Forestry and Timber Bureau will not interfere with the powers of the Minister for Trade and Customs to impose import and export duties. The bureau however, will be in a position to advise the Minister in that regard. I urge honorable senators to give the bill a speedy passage.

Question resolved in the affirmative.

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

page 4149

CUSTOMS TARIFF VALIDATION BILL 1946

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

Bill (on motion by Senator J. M. Erases) read a first time.

Second Reading

Senator J M FRASER:
Minister for Trade and Customs · WESTERN AUSTRALIA · ALP

.- I move-

That the bill he now read a second time.

This measure follows the usual and necessary practice of validating before the expiry ofthe Parliament the collection of duties of customs under outstanding Customs Tariff Proposals.

As will be seen from clause 3 of the bill, the Customs Tariff Proposals’ which it is desired to validate are those introduced into the House of Representatives on the 31st July. No absolute period of validation has been prescribed in the bill. This follows the course established by a previous bill passed by the Senate, and therefore secures uniformity with validation acts which are at present operative. The position at present is that whilst the proposals validated by this bill are operative and legal, they cannot be incorporated in the Customs Tariff Act until a Customs Tariff bill has been passed by the Parliament. The introduction of a Customs Tariff bill will give honorable senators the opportunity to debate individual items in the schedude referred to in the present validation bill. Such a measure will be introduced as soon as circumstances permit.

Question resolved in the affirmative.

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

page 4149

EXCISE TARIFF VALIDATION BILL 1946

Bill received from the House of Representatives.

Standing andSessional Orders suspended.

Bill (on motion by Senator J. M. Fraser) read a first time.

Second Beading.

Senator J M FRASER:
Minister for Trade and Customs · WESTERN AUSTRALIA · ALP

.- I move-

That the bill be now read a second time.

The purpose of this bill is similar to that of the Customs Tariff Validation Bill. Its object is to validate the collection of duties of excise imposed by Excise Tariff Proposals No. 1 of the 31st July.

Question resolved in the affirmative.

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

page 4150

AUSTRALIAN BROADCASTING BILL 1946

Bill returned from the House of Representatives without amendment.

Sitting suspended from 12.59 to 2.15 p.m.

page 4150

AUSTRALIAN SOLDIERS’ REPATRIATION BILL 1946

Second Reading

Debate resumed (vide page 4142).

Senator COLLETT:
Western Australia

, - There cannot be any reasonable opposition to this measure. As the Postmaster-General (Senator Cameron) said in his second-reading, speech, the recent amendments of the Invalid and Old-age Pensions Act have necessitated a consequent adjustment and alinement of the payments “made under Part III., Division 5, of the Australian Soldiers’ Repatriation Act. The bill before us does that by amending sections 89 and 90 of that act. However, a useful purpose may be served by indicating in some detail exactly what the benefits and privileges are for those individuals who are designated “ service pensioners “. First, to be eligible for a service pension, a man must have served in a theatre of war and have reached the age of 60 years, and a woman must have served in a theatre of war or served abroad, and have reached the age of 55 years; but the Repatriation Commission may grant a service pension irrespective of age if a person is permanently unemployable, oris suffering from pulmonary tuberculosis. The pensioner may, therefore, under the existing and proposed legislation receive 32s. 6d. weekly. If he was married before the2nd October, 1931, his wife may also receive 22s. weekly, and his children, if any, may. benefit in a manner that I shall indicate shortly. To go further: A man who served in World War II., and is granted a service pension, and who is married, will also receive consideration in respect of his wife and children, the payments for children being as follows : - One child, 5s. per week; two children, 7s. 6d. per week; three children, 10s. per week; and four children, 12s. 6d. per week. Consideration does not extend to children of sixteen years of age. In the payment of the service pension no regard is paid to any income that the pensioner may derive provided that it does not exceed 20s. per week. For example, if he is in receipt of a war disability pension of 15s. per week, that amount would not be deducted from his service pension. Also, the “ property bar “ has been raised from £400 to £650. Therefore, whereas property valued at £401 at present debars payment of a pension, the new limit will be £651. The possession of property, however, involves deductions from the pension, on the basis of so much per fortnight for each £10 of property in excess of £50.

Take, for instance, the case of a member who has £350. Of this amount, £300 is taken into account, being 30 units of £10 each. For each of these units 9d. a fortnight is deducted from the rate of pension that would otherwise be payable. The total deduction in the case cited would be 24s. 3d. The deduction in respect of the portion of property between £400 and £650, however, is1s. 6d. per fortnight for each £10. If a pensioner has £600, the deductions would be as follows: First £400, exemption £50, leaving £350, in 35 units of 9d. each - deduction 26s. 3d. per fortnight; remaining £200, or 20 units at1s. 6d. each - deduction 30s. The total deductions, therefore, would be 56s. 3d. per fortnight.

In assessing the value of property, certain items are disregarded, but the list has been extended. For instance, in future pensions will not be liable to deductions in respect of the surrender value of any life’ insurance policy or policies not exceeding £200, the capital value of any life interest or annuity, the value of any contingent interest, the present value of any reversionary interest or interests up to £500, or the value of any property, not being a contingent or reversionary interest, to which the pensioner, or his wife, is entitled from the estate of a deceased person, but which has not been received by the pensioner or his wife. Those, in brief, are the considerations given to a service pensioner.

This is a good measure. The prin- ciple of service pensions was pressed by the . Returned Sailors, Soldiers and Airmen’s Imperial League of Australia on behalf of what were designated “ burnt out “ soldiers. It was accepted and implemented by the Lyons Government. In 1941 the extension of the scope of the act to include veterans of the South African war was considered and promised by the Menzies Government.That promise was honoured by the first Curtin Government. The measure has given relief to many thousands of persons, and the annual liability, as was pointed out bv the Minister, is less than £1,000,000.

Question resolved in the affirmative.

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

page 4151

RAILWAY STANDARDIZATION AGREEMENT BILL 1946

Second Reading

Debate resumed (vide page 4139).

Senator NASH:
Western Australia

, - As an Australian with, I hope, a national .outlook, I welcome this measure and I congratulate the Minister for Transport (Mr. Ward) upon having played such a prominent part in bringing the standardization of our railways systems at least to a forward stage. I regret very much that Western Australia is not associated with the agreement at present; but, as the Vice-President of the Executive

Council (Senator Collings) has indicated, the door is still open for negotiations, and I sincerely trust that before long, Western Australia will become a party to the agreement. As the result of action taken in the Legislative Council of Western Australia the State’ Government appointed a - select committee to hear evidence and report upon the standardization proposal. That inquiry was held and a report -was presented. In regard to the- attitude of the Premier of Western Australia, Mr. Wise, I should like to refer to a report published in the West Australian on the 21st J January. containing comments by the Premier on the decision of the Conference of Commonwealth and State Ministers to proceed with the standardization of our railways. The report attributes the following views to Mr. Wise : -

The most important aspect was that of cost, and in this connexion the select -committee had recommended that, as the value of the project was mainly for defence purposes, the Commonwealth should bear four-fifths of the cost and the States one-fifth. Originally, the Commonwealth had proposed the reverse ratio but at the commencement of the present conference it had undertaken to increase its proportion to two-fifths. After discussion, it proposed a fifty-fifty basis, and as the Commonwealth must contribute os. per cent, towards the sinking fund on State loans, they contended that, in effect, their share of the cost would really be about two-thirds.

The second important recommendation of the select committee to which he had referred was that a complete investigation should be undertaken of the alternative routes between Kalgoorlie and Fremantle. In reply, the Commonwealth Minister for Transport (Mr. Ward) had said that, in his opinion, this was a matter for the State itself to decide, as it undoubtedly had a greater knowledge of local conditions than the Commonwealth. ; ‘Mr. Wise said that he had also raised the recommendation of the select committee advocating that the work of standardization should not compete for man-power and materials in short supply with such important pro jects as housing, schools, hospitals, &c.

In reply, Mr. Ward had said that while, in his opinion, there would be ample labour available for all purposes, the actual construction would be in the hands of. the States, and it would be for them to determine the priority allotted to it, as compared with other works.

Mr. Wise said that on receipt of these satisfactory assurances, he felt he could recommend the scheme for the acceptance of the Government and the Parliament.

In view of these statements I am at loss to understand subsequent happenings.

A conference held in Parliament House, Canberra, on the 11th and 12th March, to consider the terms of the draft, agreement between the Commonwealth and the States in regard to standardization, was attended by the Minister for Railways in “Western Australia, Mr. Marshall.’ I quote from the official minutes of the conference -

Mr. Marshall contended that one of the most important questions, as far as Western Australia was concerned was the priority that this work should take over other .works considered to be more urgently required. . . . The chairman said that the priority of work and the speed with which it would be carried out had already been determined at previous conferences, the ultimate conclusion being that the standardization scheme should in fact, be carried out by agreement between the Commonwealth and the State concerned. However, if Western Australia considered that labour and materials were inadequate to proceed concurrently with other works mentioned by Mr. Marshall this was purely a matter for the State to determine. It was clearly indicated by the chairman that there was no intention on the part of the Commonwealth to dictate to the States in regard to the construction of this work as compared with what they may regard as high priority works. Since the execution of this work was contemplated to extend over a number of years, it was considered that any resources available in a State from time to time should be immediately diverted to the standardization project. The chairman pointed out that, although at the present time the volume of work appeared to be in excess of the labour available, within a measurable space of time the States may be pleased to have an avenue in which to employ surplus labour.

With reference to the financial question associated with standardization, the chairman regarded this as a ‘secondary consideration, because whilst the agreement stated that 50 per cent, of the costs would be borne by the States and 50 per cent, would be borne by the Commonwealth, in actual fact the Commonwealth would be bearing 66S per cent, of the total cost. He explained that -the Commonwealth would be obliged to make a contribution to the Sinking Fund to write off State borrowings, which in truth brought the actual cost to bp borne by. the Commonwealth up to two-thirds of the total expenditure involved. If as a result of carrying out this or any other project the States were unable to meet their financial commitment, under section 0(5 of the Constitution, the State could apply for a special grant. However, the distribution of costs had already been agreed upon and officially accepted at Premiers Conference.

I have read those extracts because they show that there was no ambiguity on thepart of the Commonwealth in. its dealingswith Western Australia. For many years, Western Australians have complained that Canberra is too far away from their State and that, therefore, the Commonwealth Parliament does not givesufficient consideration to their needs. In this instance, the Commonwealth Government has made a most generous offer to Western Australia to. provide a badly needed public service. Despite the generosity of its proposals . the Commonwealth Government has not been allowed; to proceed with this nationally urgent undertaking. The people of Western Australia are entitled to have the fastest system of transport possible, whether it be by land, air or sea. The Government of that State is making a valiant effort to modernize its railway system, but it is faced with tremendous difficulties. It proposes to construct a new train tooperate on the interstate line between Perth and Kalgoorlie. That train will cost the taxpayers of Western Australia a great deal of money, but it will run on the old narrow-gauge lines. Therefore, little improvement will be achieved from the point of view of speed. Had the Government of Western Australia accepted the Commonwealth’s offer to provide the money for the standardization of this section of the transAustralian line, work would have been commenced on the project almost immediately without interfering in any way with State undertakings. I hope that the Government of Western Australia will soon decide to reopen negotiations with the Commonwealth Government with a .view to undertaking this work, which would provide opportunities for the employment of not. only unskilled workers, but also trained craftsmen. ‘

Senator LECKIE:
Victoria

.- I shall have very little to say-about the bill; but I object to the way in which the Government has presented it, with a number of other important measures, in the last few hours of the session. The bill deserves at least two days’ consideration by the Senate. The Minister, in his’ second-reading speech, wasted time by reading fourteen foolscap pages of type-, script at a time when every minute is important. Of those fourteen pages, at least twelve were devoted to arguments apparently designed to convince himself that the standardization of railway gauges is an essential defence measure. Every other honorable senator had been convinced of that fact long ago. However, the honorable gentleman has always been stubborn and he had to persuade himself of the value of the bill. Had he read only page 13 of his prepared speech, be would have dealt adequately with the measure. The purposes of the bill are summarized on that page. It would be ridiculous to expect us to examine the measure in detail in the brief time at our disposal, and, therefore, we must accept the Minister’s statements at their face value. The total cost of the complete plan for New South “Wales, Victoria and South Australia, on present estimates, is 50.870, 696. The cost of new locomotives and rolling-stock will be debited in the following proportions - 25 per cent, to the standardization funds and 75 per cent, to the State concerned. The cost of the standardization scheme will be shared equally by the Commonwealth and the States. The States’ contribution will be made in annual payments over a period of 50 years, which appears to be a very liberal provision. According to the Minister, the cost of related works-^-for example, works which, though related, are “ not caused by standardization “ - will be borne by the State -concerned. The Minister might have given some explanation of this statement. I presume that it refers to railway stations, amongst other things. The States’ share of the COFts of standardization is to be distributed over the three States on a per capita basis of population to be determined annually in accordance with the Statistician’s figures. Under the scheme, very little work will have to be done to raiiway lines and rolling-stock in New South Wales. Will that State have to contribute to the cost of. standardization works in Victoria and South Australia on a per capita rate?

Senator Ashley:

– Yes.

Senator LECKIE:
VICTORIA · UAP; LP from 1944

– That means that New South Wales will have to pay a great deal more than either of the other two States.

Senator Ashley:

– That is so.

Senator LECKIE:

– I do not want to have any misunderstanding on that, point. The cost of the North-South railway line is to be borne by the Commonwealth. The whole undertaking will be handled by a board. It would be useless for me to attempt to debate the bill at length. The measure warrants lengthy consideration, and this practice of introducing important bills on the last day of the session, allowing only a short time for discussion, is discreditable to our system of government. This sort of thing has happened before, and on each occasion the government has promised to reform. The Senate has been called iupon to pass a dozen bills within an hour or two, and Ministers have offered the excuse that they are’ only “ chicken feed “’ measures and not of a contentious nature. However, to-day we have been asked to deal with important measures such as ‘ that now before the Senate, and other important ones dealing with the wool industry, the cotton industry, and service pensions. At a later hour a Supply Bill will be presented. At least one day should have been set aside for consideration of each of these bills. On behalf of the Opposition I protest against a system which forces bills through the Senate in such haste in the last hours of the Parliament. Having voiced my protest, I do not propose to say any more.

Senator A J FRASER:
VICTORIA · LP

– Whatever virtues this bill may possess, nothing can possibly justify its introduction at this stage of the session. I wish to place on .record my- most emphatic protest against the Senate being asked to pass a bill involving the expenditure of over £50,000,000 without proper opportunity for discussion. That sum is only at estimate, and if our experience is any guide, and if we can rely on the opinions of railway officers who know something about the cost of construcfing railways, the total cost is more likely to be £100,000,000. Much has been said regarding the allocation of the cost. A certain percentage is to be paid by the Commonwealth, and the remainder by the States; but however the cost be a’located, the burden will fall on the taxpayers of this country. The bill is the result of high-pressure salesmanship of a kind that I never want to see again. Discussions between the Commonwealth and the States have extended over many years. Indeed, a portion of the money to be expended will be used to construct a railway line in accordance with an agreement entered into between the Commonwealth Government and the Government of South Australia in 1910.

Senator ARNOLD:

– There is no highpressure salesmanship about that.

Senator A J FRASER:
VICTORIA · LP

-The fact that after 36 years a promise is to be fulfilled indicates to what degree railways in certain areas are out of date.

Senator JAMES McLACHLAN:
SOUTH AUSTRALIA · UAP

– An agreement was entered into.

Senator A J FRASER:
VICTORIA · LP

– That is so, and it is only because this proposal gives effect to the undertaking given in 1910 that South Australia has accepted the scheme. When the proposal to standardize the railways of the Commonwealth was first discussed with the State governments, all that the conference did was to agree to the principle of standardization. Having obtained that agreement, the Commonwealth then took further steps. Other conferences were called, but each time State Ministers and State officials condemned the plan sub- ‘mitted to them. In -the early stages, the proposal to standardize the gauges was submitted as providing a valuable means of defence. That argument is no longer used, because, in the first place, the railways which were planned for strategic purposes have been omitted from the plan, and, secondly, because heads of the services say that, from a defence point of view, the proposals are worthless. On the 26th March, 1946, Mr. Wills, the Commissioner of Railways in Queensland, condemned the proposal and pointed out that the Commonwealth’s Defence Committee had said that from the Army’s point of view, standardization of the railways was by no means imperative. He went on to give reasons why the plan should not be proceeded with, and he drew attention to the amount of planning which would have to take place if the proposal was to have any defence value. . He showed the difficulty of moving large numbers of troops and Army equipment by rail. We have heard a good deal recently of the scarcity of timber. Those interested in afforestation have told us that, unless our timber resources are developed, we shall have to import large quantities of timber in the near future. This plan will require 800,000,000 super, feet of timber for sleepers. That is the demand which it will make on our timber resources at a time when there is an urgent need for timber for homes for ex-servicemen and others. The project will cost over £50,000,000, and will require the services’ of at least 34,000 workmen, at a time when both money and labour are required to develop industries which will have, a good influence on the national economy. At the best, this scheme will provide work for men for only a few years but if the money and the labour were used to develop secondary industries, the benefits would be lasting. Another important factor is that not one additional penny of railway revenue will be received as the result of this plan. I realize that honorable senators from Western Australia see some virtue in the scheme, and I concede that there is need for a railway of standard gauge from Kalgoorlie to Perth.

Senator Leckie:

– The Western Australian Government promised to construct a line of standard gauge between those ‘ places.

Senator A J FRASER:
VICTORIA · LP

– In that respect there will be some benefit, ‘but even that work when completed will not reduce the travelling time between Perth and Canberra. Passengers arriving at Adelaide from Western Australia in the morning will still have to wait until the afternoon train leaves for Melbourne. In that city there will be the same further delay as there is to-day. This is a subject about which I know a good deal. The bulk of the travel between the States affected is between Adelaide and Melbourne and between Melbourne and Sydney. Railway commissioners musthave regard to the economical operation of their services. Prior to the war, almost every railway system in Australia operated at a loss; the Victorian railways showed a loss of about £900,000 per annum. This plan will increase railway operating costs and the amount to be paid as interest on capital by another £1,000,000 per annum. Victorian taxpayers will have their proportion of that added to the losses now made on State railways.

Senator Collett:

– Will there not be increased earnings?

Senator A J FRASER:
VICTORIA · LP

– No. I should be happier if I could be sure that the revenue would increase. Mr. Wills, to whom I have already referred, has spoken his mind regarding the proposal. Bte wants to know whether standardization of railway gauges will enable Queensland to grow more wheat, produce more butter, or raise more cattle. ‘ He has answered his questions with an emphatic “ No “.

Senator Arnold:

– That State will produce wheat, butter and cattle more cheaply.”

Senator A J FRASER:
VICTORIA · LP

– The scheme when completed may stimulate interstate traffic, but we must bear in mind the growing tendency to travel by road. Many people now prefer to travel to Western Australia by road than by rail. The Commonwealth Government is to become a competitor of the State-owned railway systems, which carry passengers and freight between the State capitals. A few days ago I asked a question relating to the percentage, of interstate traffic earned by the State railways. I think that the Minister for Transport (Mr. Ward) knew the answer, but he suggested that I should seek the information from the State governments concerned. At best, the railways of Victoria pay 5 per- cent, on capital costs, but the average return is about 2^ per cent. Because of the competition from air, road and sea transport services, the Victorian Railways Commissioners expect that return to diminish and even to disappear. Let us see how- this proposal will affect . taxpayers in Victoria. The removal of the break of gauge on the railway between Melbourne and Sydney will increase the operating costs . of the Victorian railways between Wodonga and Melbourne by over £35,000 per annum, without any corresponding increase of revenue. Wodonga is about 190 miles from Melbourne, and trains run between those places on 365 days a year, the total distance run being approximately 140,000 miles. At a running cost of 5s. a mile that represents £35,000 per annum. That is one reason why those who know something about this proposal are disappointed that more time was not allowed to discuss it. Fortunately, there are some crumbs of comfort in the knowledge that on the 28th September the people’ will have an opportunity to make a change of government. A further point is that the States will have to pass complementary legislation. I hope that those measures will be thoroughly discussed, in which event I am confident that more than one State will reject the proposal, I feel keenly about this proposal because of the large sum of money involved, because it will not give the benefits that we have been led to expect, because it will place a burden on the taxpayers of this country for a number of years, and because it will retard the progress of more modern means of transport. I have already indicated that I agree that the .railway between Kalgoorlie and Perth should be widened to 4 ft. S£ in. I do- not think that it would be unfair to ask the Commonwealth Government to bear the whole cost of that conversion. I see some virtue in the proposal thai the North-South line should be completed. That was part of the agreement made between the Commonwealth and South Australia in 1910; but, to-day, South Australia is in the position of an unpaid vendor. That State should not have to demand the fulfilment of that agreement. The Commonwealth shouldbe only too willing to honour its promises under that agreement. There is merit in the proposal to standardize the gauge from Port Augusta to Broker Hill. When that is done, we shall have a uniform gauge line from Perth te Brisbane, which will provide all the advantages claimed for the Government’s standardization plan. As the Government proposes to honour its pr.om.ise to link Alice Springs with Birdum and thu? complete the North-South line, it isstrange that a portion of South Australia is excluded from this project. During the war, the railway.* in Victoria and New South Wales returned fair profits, whilst the railways in South Australia more than met expenses. In Western Australia there was little or no change. I produce for the information of honorable senators a map of Victoria on which are marked clearly the road services conducted by licensed operators in competition with the State railways. It will be- seen that those services duplicate practically every mile of railways. If the scheme’ proposed under the bill is proceeded with the cost will have to be borne by the taxpayers as a whole. One if the chief objections to the proposal is that it will restrict the development of. more modern forms of transport. It is obvious that the Victorian Government would not license so many road services if they were not necessary, because they compete with the railways which the Government itself controls. However, the Government of that State is compelled to license those road services because the people demand more modern forms of transport. It is significant that many railways in Victoria which were paying their way twenty years, ago have now been closed down because they have been . outmoded hy road transport. Therefore, we must exercise the greatest care in implementing the proposal embodied in the bill. We should not proceed with it except in its proper order of priority. Ear more important national works should first be undertaken. Should another depression .descend upon this country, and we should be faced with the problem of finding employment, I would whole-heartedly support the implementation, of this plan, ; because it is far wiser to expend public money in the provision of employment through the construction of developmental works than merely to provide the unemployed ‘with a dole. The expenditure involved in this’ project, however, will remain a charge upon the community for very many years. . Before we incur that liability we should overcome the shortage of housing. A housing programme calls for huge supplies of timber and steel, and a large pool of skilled workers. In the development of Australia, we need to undertake water conservation schemes on a national basis in order to protect country towns and districts against drought. Another problem which is more urgent than thestandardization of railway gauges is thai” of soil erosion. . The solution of thai problem will involve a very large expenditure. We should also turn our attention to the development of substitutes for coal. The absurdity of ..the proposal tostandardize railway gauges is reflected’ in the announcement in to-day’s press in. New South Wales, the most conservative transport State, which reads, “ All road transport restrictions lifted “. Upon the paymen’t of a fee of lt. a road operator can obtain a- licence to operate in any district in that State. Road operators are nowtransporting wool to ports and steel f romNewcastle to Brisbane, whilst they carry fodder for stock as hack loading. Unlesswe can guarantee the production of sufficient coal to meet the community’s needs it, will be unwise to invest more money in our railway systems. Therefore, we should embark upon a plan to develop substitutesfor. coal, and develop our brown coal deposits for the production of gas. ‘ The importance of re-afforestation and thedecentralization of industries have already been emphasized in this chamber. We. can successfully implement a policy of decentralization and encourage people to settle iri the inland areas, only by providing modern transport services throughout the country. If the Government ha? available £50,000,000 to expend upon th’ project embodied in the bill, it should rather expend that money on the provision of modern road transport services to isolated country areas. Many centres which are situated only 30 miles from rail heads are practically isolated, and the cost of conveying products in harvest time to the railhead is almost as much as that of sending the products by rail to the seaboard. The Government should subsidize the provision of modern road services to outback areas. Therefore, we must study this plan thoroughly in its relation to our economy as a . whole. As the Army chiefs have dissociated themselves from the plan, it has very little virtue.

Senator Collett:

– I do not think that the Army chiefs oppose the plan. ‘

Senator A J FRASER:
VICTORIA · LP

– The Commissioner for Railways in Queensland has stated publicly that the Commonwealth [Defence Committee expressed the view that “ standardization is by no means im- perative from an Army point of view “. The large expenditure involved should be sufficient to make us approach this project “with caution, and thoroughly examine it from all viewpoints rather than run the risk of committing so costly a blunder. At the committee stage, I propose, if time permits, . to move an amendment with the object of providing that the Government shall not commence the scheme until 1952, by which time it will have had an opportunity to hold a thorough investigation of the matter and obtain the advice of outstanding engineers and economists based on the experience of transport systems in other countries. Let me remindhonorable senators of developments in Canada during the war. Canada and the United States are most progressive countries so far. as transport is concerned. During the war, the Allies found it necessary to transport huge quantities of equipment and large numbers of personnel to Alaska. Instead of constructing a railway for this purpose, they built a road from Edmonton to Fairfax, in Alaska, a distance’ .of 3,000 miles. That project, which was decided upon in collaboration with Great. Britain, should make us reconsider this proposition if only from a defence point of view.

Senator COLLINGS:
QueenslandVicePresident of the Executive Council · ALP

in reply - I thank honorable senators for the reception which they have given to the bill. I agree with Senator Leckie when he says that- it is not altogether satisfactory that on the last day of the session so many bills should be brought before the Senate. When I was in Opposition I made similar protests. However, we must face realities in this matter. We must recognize that whatever is done by the Government it seems to be impossible to keep legislation flowing smoothly from the House of Representatives, with the result that many measures bank up as the closing date of the session . approaches. Consequently, we receive many bills practically at the end of the session.

Most of the measures dealt with by the Senate this morning were of a machinery character’ which did not call for lengthy debate. This bill is not of that character. Senator Leckie commented upon the length of my second-reading speech, but I dealt only with essentials, lt was a comparatively long speech because the Government desired to place before the Senate the history of this project as well as all the facts arid figures involved in it in order that the very simple proposition contained in the bill might be readily understood and unnecessary debate thereby avoided. I was .present at the first conference of Railways Commissioners held in Canberra to discuss this project. The whole of Senator A. J. Fraser’s speech illustrated the necessity for this project. He admitted that he was in favour of half of the proposals in the bill. He supported the proposed railway from Alice Springs to Birdum, and the standardization of the gauge between Port Augusta and Broken Hill, and between Kalgoorlie and Perth. Hispoke of all the difficulties that occur in connexion with transport. He referred to the losses on the railways in Victoria, but he was not half .so eloquent concerning the railway problems of that State as those of South Australia, about which he is probably not so well informed. There will always be losses on the State railways until the economies for which the bill provides are practised. If we regard the railway systems of Australia from the point of view of an accountant, of course they do not pay in the ordinary sense, but from the nation’”* development aspect they have returned a handsome dividend. They have mad,possible the extraordinary development that has occurred in this country during the last century and a ‘half.

In a somewhat sinister manner, thc honorable senator said that the Government had attempted to justify the proposals in the bill on the ground of defence, requirements. I read extracts from the report of the Defence Committee issued in October, 1945, and I showed that, if Australia were again at war it would be confronted with a most serious situation from the point of view of transport. The honorable senator made a further point which might appear to have merit. were one not acquainted with the facts. He remarked that before the scheme for which the bill provides was proceeded with, attention should be paid to urgent problems, such as the prevention of soil erosion and the housing of the people. The States which have entered into an agreement with the Commonwealth, and those which I hope will come in later, have the right to declare the priority of the works to be undertaken. It will be for them to say whether they desire their particular sections of the standardization scheme to be proceeded with as soon as possible, or whether they prefer that priority should be given to some of the other matters to which the honorable senator referred. Mr. Playford, the Premier of South Australia, is thoroughly in agreement with the proposals in the bill, and on behalf of the Government of that State he has entered into an agreement with the Commonwealth.

Question resolved in the affirmative.

Bill read a second time.

In committee:

Clause 1 agreed to.

Clause 2 -

This Act shall come into operation on the day on which it receives the Royal Assent.

Amendment (by Senator A. J. Fraser) proposed -

That the following words be added: - “but in any case not earlier than the first day of July, One thousand nine hundred and fifty-two.

Senator COLLINGS:
Vice-President of the Executive Council · Queensland · ALP

– The Government cannot accept the amendment. It would have the effect of shelving the measure.

Amendment negatived.

Clause agreed to.

Remainder of bill agreed to.

Bill reported without amendment; report adopted.

Bill read a third time.

page 4158

RAW COTTON BOUNTY BILL 1946

Second Reading

Debate resumed(vide page 4141).

Senator COOPER:
Queensland

– I welcome this measure.Cottongrowing is one of the oldest industries in Australia. It was established in Queensland in theeightees, and it has had a chequered career. This bill has been introduced to renew the bounty which expires at the end of this year. The report of the. Tariff Board with regard to the industry was made available on the 15th October, 1945. As the primary producers need time to plan their course of action, it would have been of considerable benefit to them had the bill beenintroduced at an earlier date. The Minister who introduced the bill in theHouse of Representatives (Mr. Forde), apparently; postponed its presentation to the dying hours of this Parliament, because cotton is grown in Capricornia, the electorate which he represents, and he hopes that this bill will assist him in his electioneering campaign. This industry is capable of great expansion. The climate of Queensland is peculiarly suitable for the production of cotton, and the yield could be greatly increased if irrigation facilities were made available to the growers. A plan has been formulated for the adoption of irrigation schemes in the cotton areas, but the work could not be proceeded with during the war period. The annual production in 1935 was 15,000 bales of 500 lb. each. During the war period the industry languished, and the crop was reduced to 1,300 bales. The average production over a ten-year period was 10,000 bales. The production increased from 15,000 bales in 1935, to 55,000 bales in 1945. It is estimated that there will be a demand in future for 65,000 teles annually. Therefore the industry’ has considerable scope for expansion, provided irrigation schemes are introduced at the first opportunity. The farmers should.be able to con-‘ centrate on cotton, and produce it at their sole crop, rather than regard it as a side-line or catch crop. Some of the difficulties of the growers have been the high cost of cotton-picking, the class of seasonal labour available, and the difficulty in obtaining labour. The. Queensland Department of Agriculture is introducing mechanical cottonpickers for experimental purposes. I am sure that with irrigation, and with mechanical aids cotton-growing will be a most suitable farming pursuit for closer settlement schemes in Queensland.. It is a family job. One man can look after a small irrigated area and can derive a reasonable return from it. I hope that in future the Australian cotton-growing industry will be able to supply a considerable portion of the raw cotton requirements of this country.

Senator J M FRASER:
Minister for Trade and Customs · WESTERN AUSTRALIA · ALP

in reply - I assure Senator Cooper that the fact that the Minister for the Army (Mr. Forde) introduced this measure in the House of Representatives has no political significance.

Question resolved in the affirmative.

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

page 4159

WOOL INDUSTRY FUND BILL 1946

Second Reading

Debate resumed from the 8th August (vide page 4006), on motion by Senator Ashley -

That the bill be now read a second time.

Senator McLEAY:
Leader of the Opposition · South Australia

– This measure has been debated fully in the House of Representatives, and I am surprised that in spite of the strong case made out against it by members of the Liberal party, and the Australian Country party in that chamber, as well as by organizations representing wool-growers, the Government continues to be obstinate. The most amazing feature of the secondreading speech of the Minister for Trade and Customs (Senator J. M. Fraser) was the attempt to prove that certain moneys derived from the sale of wool did not rightly belong to the wool-growers. It was argued that the Government had entered into an agreement with the United Kingdom in respect of the entire wool clip, and that contract having been carried out, the proceeds from other sources did not rightly belong to the growers. I cannot understand how the Government can satisfy its own conscience in regard to this matter. It has, in effect, indicated that the wool-growers should be. very pleased that the money involved has not been paid into general revenue but has been earmarked for paymerit into a trust fund, the purpose of which is to further the interests of the wool industry. The amount involved is £7,000,000, and that is considerable when one remembers that the number of woolgrowers in this country is great. Shylock himself was a fool compared with the Treasury officials who have advised the Government on three recent matters affecting rural industries. First, there was an appeal to Great Britain to provide more money for butter. Portion of that money has been used to prevent a rise of the cost of living, and another portion has gone into general revenue. Then we have the 1945-46 wheat crop in respect of which £7,000,000 is to be confiscated by the Government. The repayment of the money involved in that respect to the growers is problematical. Now we find that £7,000,000 is being confiscated in respect of wool. All I can do at this state is enter a most emphatic protest against the Government’s highhanded attitude.

Senator COOPER (Queensland) [3.35 J. - The trust fund to be set up under this measure is to be used to benefit the wool industry, particularly by carrying out research and the promotion of the use of wool. ‘ I ask that consideration also be given to devoting some of the money to the eradication of dingoes in sheepraising areas. It is of little use spending large sums of money upon the promotion of the use of wool, if nothing is to be done to prevent the present high loss of sheep due to the depredations of dingoes. During the last few years the number of dingoes has increased considerably and many thousands of sheep have been killed. Again I appeal to the Government to take action on a nation-wide basis to curb this menace which exists in all States.

Senator ASHLEY:
Minister for Supply and Shipping · New South Wales · ALP

, - in reply - The Government does not accept the statement of the Leader of the Opposition (Senator McLeay) that £7,000,000 is being confiscated from the wool-growers. I point out that the growers have received grade prices on a table of limits. This money has accrued as the result of dealings in wool by the Commonwealth Government outside of the contract with the Government of th*

United Kingdom. I thank the Senate for the reception ‘that it has given to this measure.

Question resolved in the affirmative.

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

page 4160

SUPPLY BILL (No. 2) 1946-47

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator ASHLEY:
Minister for Supply and Shipping · New “South Wales · ALP

.- I move -

That the bill be now read a second time.

Supply Bill No. 1 ,covered a period of two months to the end of August. The purpose of the present bill is to obtain supply for* a further period of three months to provide for essential requirements until the new Parliament assembles after the general elections. The amount ro be appropriated is £45,030,000 and the provision may be summarized as follows : -

The amount provided for non-war services is based oh the Appropriation Act passed by the Parliament for the year 1945-46 and provision is made only for -essential requirements. Including .-the amounts in Supply Act No. 1, the total amount t provided represents approximately five-twelfths of the 1945-46 appropriations. After excluding special appropriations, it is estimated that total war expenditure for the three months covered by this bill will be £52,964,000. This represents a reduction of £59,543,000 on the expenditure for the corresponding period of 1945-46. Included in this amount is provision for deferred pay of men now being discharged and other terminal charges arising out of the war. The sum of £6,500,000 is included in the bill to meet estimated ex- penditure in connexion with the lendlease and reciprocal lend-lease settlement with the United States of America. An amount of £100,000 is provided for initial expenditure under the Coal Industry Act. The sum of £30,000,000 provided for war services represents the amount which it is estimated will be available from revenue receipts for tho period of three months to meet war expenditure after making allowance for other obligations. The balance of war expenditure will be met from loan, appropriations. As indicated by the Treasurer (Mr. Chifley) in his recent Financial Statement, it will be necessary when the budget is framed to arrange the grouping of items now shown under war services more in accord with peace-time conditions. For the present, however, they are being shown in the same manner as in the Estimates for 1945-46.

As in previous years, provision is made in the bill for “ Advance to the Treasurer”, the amount being £5,000,000. This amount is required mainly to carry on uncompleted civil works in progress at 30 th June, and also te cover unforeseen and’ miscellaneous expenditure. Except as already mentioned, no provision has been made for any new expenditure and there is no departure from existing policy.

Question resolved in the affirmative.

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

page 4160

SUPPLEMENTARY APPROPRIATION BILL 1944-45

Bill received from the House of Repre*sentatives.

Standing and Sessional Orders suspended.

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

Second Beading.

Senator ASHLEY (New South Wales

Minister for Supply and Shipping) [ 3.46]. - I move-

That the bill be now read a second time.

These supplementary estimates of expen- diture, which relate to the financial year 1944-45, total £1,517,987. That sum was expended out of a general appropriation from revenue of £6,000,000, made available to the Treasurer to meet expenditure which could not be foreseen when the Estimates were prepared. It is now necessary to obtain specific parliamentary appropriation to cover the several items of excess expenditure. Full details of the expenditure which are now submitted for approval were included in the Estimates and budget papers for 1945-46. These publications show the amount voted for 1945-46, together with the actual expenditure for the previous year which is included for informative purposes. Details are also included in the Treasurer’s Financial Statement for 1944-45, which has been tabled for the information of honorable senators. The supplementary estimates detail the items under which the additional amount for which approval is now sought was expended by the various departments. The chief items in round figures are -

I f any further details of the various items of expenditure are required they will be made available. at a later stage.

Senator COOPER:
Queensland

– I notice an item under division 190 dealing with assistance to stock-feeders. Can the Minister for Supply and Shipping (Senator Ashley) say whether the Government has received any representations from the Queensland Council of Agriculture asking it to announce its intentions regarding the granting of special drought assistance to dairy-farmers in Queensland, where there are severe drought conditions at. present? The council is meeting at Brisbane, and

I believe that it has appealed to the Government to assist the dairying industry.

Senator ASHLEY:
Minister for Supply and Shipping · New South Wales · ALP

in reply - Representations have been made to the Prime Minister (Mr. Chifley), and inquiries are being made now with a view to assisting drought stricken dairy-farmers in Queensland.

Question resolved in the affirmative.

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

page 4161

QUESTION

FRIDAY ADJOURNMENT AT 3.45 P.M

The PRESIDENT:

– In conformity- with the sessional order that, unless otherwise ordered, the motion for adjournment shall be put on Fridays, at 3.45 p.m… I formally put the question -

That the Senate do now adjourn.

Question resolved in the negative.

page 4161

SUPPLEMENTARY APPROPRIATION (WORKS AND BUILDINGS) BILL 1944-45

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator ASHLEY:
Minister for Supply and Shipping · New South Wale. · ALP

.- I move-

That the bill be now read a second time.

The total appropriation passed by the Parliament for works and services under this heading amounted to £6,277,000. The actual expenditure was £5,705,000, i.e. £572,000 less than the appropriation’. However, due to requirements which could not be foreseen when the Estimates were prepared, certain items show an increase over the individual amounts appropriated and it is now necessary toobtain parliamentary approval of these increases. The excess expenditure on the particular items concerned totals £476,117, which is spread over the various Works items of the departments.

Any details which may be required will be furnished at a later stage.

Question resolved in the affirmative.

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

page 4162

SPECIAL ADJOURNMENT

Motion (by Senator Ashley) agreed to-

That the Senate, at its rising, adjourn to

Wednesday, the 21st August, at 3 p.m.

page 4162

ADJOURNMENT

M eat Industry : Rationing - War Service Homes: Use of War Gratuity - Naval Discharges.

Motion (by Senator Ashley) proposed -

That the Senate do now adjourn.

Senator J M FRASER:
Minister for Trade and Customs · WESTERN AUSTRALIA · ALP

– During question time this morning, while the proceedings of the Senate were being broadcast, the Leader of the Opposition (Senator McLeay), referred to the maligning of people by members of the Parliament while the proceedings of the Parliament were being broadcast. In these circumstances, he said the victims had no opportunity to defend their reputations. I was very pleased to hear the honorable senator mention the subject. Because the broadcasts of par- liamentary proceedings are made under privilege, persons who are maligned have no means of securing redress other than to approach their parliamentary representative and ask him to reply on their behalf. Therefore, I was greatly disturbed when the Leader of the Opposition refused to give me the opportunity to answer a statement by the honorable member for Wide Bay (Mr. Corser), which was broadcast during the proceedings of the House of Representatives. The honorable gentleman’s action was inconsistent. The honorable member for Wide Bay made accusations against officers of my department. A Minister has the responsibility to protect his officers against attacks-

Senator McLeay:

– Even if they be in the wrong?

Senator J M FRASER:
WESTERN AUSTRALIA · ALP

– No ; certainly not. However, if they be at fault, the Minister has power to take action against them.. The honorable member for Wide Bay did not make representations to me at any time regarding the subject of his statement in the House of Representatives. He made an attack, under cover of parliamentary privilege, and I believe that it was broadcast. The persons attacked by him have had no opportunity to reply to his charges.I have other instances of such attacks, but they are sub judice at present. It may be necessary to take action to protect the persons concerned at a later stage.

On the 19th July, the honorable member for Wide Bay made a statement in the House of Representatives in which he alleged that a woman inspector employed by the Rationing Commission had used contemptible methods to trap Maryborough butchers into selling meat to her without coupons, and asked that the prosecutions launched as a result of the investigators’ visit be expunged from the records. I have had inquiries made into the allegations, and am now in a position to say that the honorable member’s statements were made with an utter and culpable disregard of the facts and are most offensive to officers carrying out their normal duties. When I became Minister for Trade and Customs I informed the officers of my department that I would not tolerate such tactics as had been reported from time to time in the press, and I was told that the allegations were unfounded. These statements received wide publicity in Queensland, and in justice to the officers concerned and to the officers of the Rationing Commission generally, it is only fair that the facts should be made known.

In the first place, I point out that it is not possible to enforce the prices and rationing regulations without using agents to make purchases. These agents have been instructed that they must not persuade or incite persons to break the law, and that their duty is merely to give traders an opportunity to do so. Two investigators - a man and a woman - visited Maryborough in the normal course of duty, and the woman investigator made purchases of meat at three butcher shops without surrendering any coupons. In only one case was she asked for coupons/ and when she stated that she did not have any, the meat was handed over to her without coupons. In the other two instances, she was not asked for coupons, and did not surrender any.

When the honorable member for Wide Bay made his allegations, I obtained the papers relating to the sales referred to, and, having ascertained the facts, I directed that the prosecutions were to be proceeded with. The cases came before the court on the 24th July. One butcher pleaded guilty, and was fined £7 10s. The other butchers - three partners - pleaded not guilty to two charges, and were fined £24 in all. One of the partners gave evidence in defence and admitted that the evidence given by the Crown witnesses was substantially correct. He made no allegation whatsoever that the woman investigating officer had induced the butcher to sell the meat without coupons. The solicitor for all the defendants has stated that his clients made no allegation that the woman investigator held out any inducement to them to break the law. Further, his clients did not approach the honorable member to make representations on their behalf. In fact, they were unaware, that such representations had been made. In view of the foregoing facts, it is difficult to understand why the honorable member for Wide Bay should have referred, on the 19th July, to “ stooges “ and “ urgers “ employed by the Government, and should have aggravated his offence by .referring on the 23rd July to “ the unfair and lying statements made by a woman officer of the Rationing Commission “. It was most unfortunate that the honorable member should have made his allegations against the woman officer and I suggest that, now that he has been informed of the facts, he should withdraw his reckless charges against her. At the end of last week I told the honorable member for Wide Bay that I expected the officers of my department to obey orders, and that I would accept responsibility for what they did. I have a responsibility to them in return for their loyalty to me, and that is why I now bring the matter before the Senate. 1.. gave to the honorable member for Wide Bay every opportunity to retract his statement. I told him that his statements were not correct, and that in fairness to the officers of the department he should withdraw them where they were made. He put the matter off for a few days, probably thinking that I would let it drop. Only last night he asked for more time to consider my suggestion, but as he has not withdrawn the statement, I can do no other than bring the facts to light in this chamber. I hope that my statement to-day will receive the same publicity in Queensland newspapers as was given to the statement of the honorable member for Wide Bay.

Senator McLEAY:
South AustraliaLeader of the Opposition

– 1 asked a question to-day in the normal way and intended no reflection on any one. The only reason why I “refused leave for the Minister to make a statement was that you, Mr. President, had said a few days ago that it was undesirable’ that Ministers should make long statements at question time when the proceedings in the Senate were being recorded for rebroadcasting. I cast no reflection on the’ Minister for whom I have the highest regard as an administrator. As an ex-Minister. I am in a position to say that I have found that not every inspector in government departments is an angel. I do not think that the honorable member for Wide Bay (Mr. Corser) would have made the statements unless he had substantial grounds for believing that they were true. I’ told the honorable member for Wide Bay that the Minister intended to make a statement on the motion for the adjournment of the Senate to-day. and he has asked me to read the following statement on his behalf : -

I am grateful for your advice that the Minister for Trade and Customs, Senator the Honorable J. -M. Fraser, intends . to make a statement on my remarks some weeks ago in the House of Representatives. . The Minister has chosen the adjournment of the Parliament when I will not have an opportunity of replying, as I must take the last available train from Canberra.

The Minister informed me that he intended making a statement setting out that what 1 said was incorrect. I finally told the Minister that 1 had no evidence that they were incorrect and I therefore did not intend to take the easier method of withdrawing them. I feel- I owe a duty to my electors and the people of Australia in protecting them against a continuance of a practice which may have applied also in Maryborough.

I might say my statements were not based on information of the business people concerned, as I have not seen them or heard from them personally.

The Minister asked me- to withdraw my statement and threatened to make a statement in the Senate if I refused to do so. Before withdrawing any statement I made a reasonable request to the Minister and reiterated on three separate occasions, namely, that 1 might be allowed to peruse the official files which were in his possession and on which he contended he based his statement. Each request was met with a definite, uncompromising refusal. Even apart from any other factors in this matter, this surprising lack of frankness on the Minister’s part would naturally cause one to look with suspicion on anything he might put forward in the Senate in defence of his administration. 1 had complained of the activities of a woman who visited two butchers in Maryborough, secured meat without coupons and later laid charges against them. I resist the opportunity of withdrawing the statements [ -have made because I -know the same ‘practice was, some time ago, indulged in in Victoria, where butchers were similarly convicted. 1 further learn that at least in one case the accused had to desist in stating the circumstances of hig offence because .he was threatened if he ventilated same in his defence.

In the Victorian cases the activities of the responsible department were also conducted hy a woman.

I do not feel satisfied that the same thing could not- have happened in Maryborough, because 1 have believed that evidence supporting my statement could have been given and strangely enough such evidence was withdrawn at the last moment.

I -would feel I would be doing an injustice to the public generally if I were to be induced to withdraw my statements and, therefore, decided- 1 would not, and will not. (Sgd.) Bernard H. Corser.

In support of the statement that similar cases had occurred in Victoria, I have received the following letter from the honorable member for Gippsland (Mr. Bowden) : -

I understand that Minister Senator Fraser intends to read a statement with the object of discrediting Mr. Corser who made certain charges re the representations on the above subject.

As we will not be in a position to. reply, it will be an advantage for you to know that exactly similar tactics were reported from two centres in Victoria.

In each case ‘certain- public ‘ bodies resented the tactics employed, viz., .a woman appealing to the sympathy and charity -of the butchers concerned and -succeeded in ‘Obtaining a small quantity of meat without coupons. She would then depart and return in a few minutes with male inspectors. In each, case convictions were obtained and strangely in ea’ch, case, the tactics employed were not used in evidence.

I have hean! of certain discreditable reason!for this failure to claim mitigating circumstances.

In addition to the meat cases, we know of a case in Canberra where the commission acquired a motor car in circumstances’ (if the evidence is “to be believed) which doc* little credit to any public body.

Geo. Bowden

I .repeat that I cast no reflection on the Minister who has not long been in charge of the Department of Trade and Customs. I believe that he would not allow his officers to stoop to such tactics’ as have been referred to in the press, hut from my own experience outside the public service, I know that such practices are followed largely in this ‘country. As a responsible citizen, I can only describe them as dastardly tactics. There is no need for heat to be engendered in a matter of this kind or for any charges to be laid. I suggest that, at an appropriate time, the Minister should look into this matter further, with a view to ending once and for all the possibility of such a practicecontinuing.

Senator McKENNA:
Minister for Health and Minister for Social Services · Tasmania · ALP

.- On the 9th August. Senator Armstrong asked the Minister representing the Acting Minister for the Navy the following question, upon notice: -

Is it a fact ‘that discharged Navy personnel do not receive a certificate’ of discharge, but receive their service record sheets, which are very cumbersome; if . so, will the Acting Minister give consideration “to issuing a simplified numbered “discharge certificate as is done by the Army V *

The Acting Minister for the- Navy ha.supplied the following answer: -

When a rating is entered* into the Navy, » certificate of service is prepared in which ‘is shown the ships and establishments in which he’ has served, examinations passed, medal,awarded, together with an assessment , of his character and efficiency at each 31st December during hie service. This certificate, which -is given to the rating on discharge, is his passport through life, and is of material assistance in obtaining subsequent employment. This form of certificate has been in existence since the inception of the Royal Australian Navy, and is amended from time to time to .meet existing conditions. I would add that the very great majority of naval ratings would prefer their certificate of service to a discharge certificate such as is issued by the .Army and Air Force.

The question of issue ofa discharge certificate similar to that issued by Armyand Air Force.In addition to the certificate of service will be the subject of review.

Senator ASHLEY (New SouthWales -Minister for Supply and Shipping [4.11]. - in reply-Earlier to-day Sena- tor Finlay asked the Minister representing the Acting Minister forDefence the following questions: -

  1. How many returned servicemen have applied for their war gratuity for purchasing ahome?
  2. How many applications have been approved?
  3. What amount of war gratuity has been made available for this purpose?

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

  1. 1,211.
  2. It is pointed out that the advertisement setting out the conditions under whicha war gratuity may be transferred for use in connexion with the purchase of a home for an ex-member of the forces appeared in the press on20th June, 1946, and the necessaryapplication forms were mode available on 1st July, 1946. An estimateis being made ofthe.prob-. able number of applications for transfer which will be received during the present financial year and provision will be made accordingly in the Estimates of Expenditure for 1848-47,

Question resolved in the affirmative.

page 4165

PAPERS

The following papers were pre- sented: -

New Guinea- Planning of under the trusteeship system of the United Nations Organization - Ministerial Statement by the Prime Minister.

Commonwealth Public Service Act - Appoint- ment - Department of External Affairs- T.G. Glasheen. -.

Customs Act - Regulations - StatutoryRules 1946,No. 126,

Dried Fruits Export Control Act- Twentysecond Annual Reportof the Commonwealth Dried Fruits Control Board, for year 1945-49, together with Statement by Minister regarding the. operation of the Act.

Senate adjourned at 4.13 p.m.

Cite as: Australia, Senate, Debates, 9 August 1946, viewed 22 October 2017, <http://historichansard.net/senate/1946/19460809_senate_17_188/>.