Senate
7 April 1948

18th Parliament · 1st Session



The Senate, on the 4th December, 1947, adjourned to a date and hour to be fixed by the President and to be notified to each honorable senator.

The Senate met at 3 p.m., pursuant to such notification.

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

page 571

ASSENT TO BILLS

Assent to the following bills reported : -

StatesGrants (Tax Re-imbursement) Bill 1047.

Income Tax Assessment Bill (No. 2) 1947.

Parliamentary Allowances Bill (No. 2) 1947.

Sales Tax (Exemptions and Classifications) Bill 1947.

Loan (Housing) Bill 1947.

States Grants Bill (No. 2) 1947.

Ministers of ‘State Bill 1947.

Commonwealth Public Works Committee Bill 1947.

Royal Style and Titles Bill (Australia) 1947.

War Service Homes Bill (No. 2) 1947.

Tradesmen’sRights Regulation Bill 1947.

Tractor Bounty Bill 1947.

Australian Soldiers’ Repatriation Bill (No.

Trading with the Enemy Bill 1947.

Egg Export Control Bill 1947.

Egg Export Charges Bill 1947.

Defence (Transitional Provisions) Bill 1947.

Treaty of Peace (Italy) Bill 1947.

Treaty of Peace (Rumania) Bill 1947.

Treaty of Peace (Hungary) Bill 1947.

Treaty of Peace (Finland) Bill 1947.

Treaty of Peace (Bulgaria) Bill . 1947.

Commonwealth Public Service Bill (No. 2) 1947.

Beer Excise Bill (No. 2) 1947.

Distillation Bill 1947.

Spirits Bill 1947.

Excise Bill 1947.

Air Navigation Bill (No. 2) 1947.

Australian National Airlines Bill 1947. - international Labour Organization Bill 1947.

Quarantine Bill (No. 2) 1947.

World Health Organization Bill 1947.

page 571

QUESTION

RAW COTTON

Sydney Fire

Senator COOPER:
QUEENSLAND

– I ask the Minister for Trade and Customs whether it is a fact that 15,000 bales of raw cotton, owned by the Commonwealth, were recently destroyed by fire at Waterloo, Sydney?What was the landed cost per lb., and the total value of the cotton destroyed ? Was the cotton insured ? If not, was any consideration given to the method of storing such combustible goods, in accordance with general fire insurance precautions ? Is it, usual to store raw material of this type in such large quantities? Are there further large quantities of raw cotton stored in a similar manner ? If so, will the Minister ensure that fire precautions shall be taken in accordance with the rules laid down by general fire insurance companies for stacking combustible goods?

Senator COURTICE:
Minister for Trade and Customs · QUEENSLAND · ALP

– It is common knowledge that a disastrousfire occurred in Sydney recently resulting in the destruction of a considerable quantity of raw cotton. I have not yet been informed of the extent of the damage, but I am making inquiries in that regard. I shall prepare a reply to the other questions that the honorable senator has asked, and provide him with it in due course.

Senator COOPER:

– As 15,000 bales of raw cotton owned by the Australian Government were destroyed in the . Sydney fire, will theMinister inform the Senate what effect this loss will have on the present scale of rationing of cotton goods?

Senator COURTICE:

– The exact quantity of, cotton, destroyed in the fixe has not yet been ascertained, but I’ am sure that the loss will not make .any alteration of the rationing scale necessary in the immediate future, at least.

page 572

QUESTION

SUGAR

Senator LAMP:
TASMANIA

– In view of the wastage of fruit that has occurred in Tasmania this year due to the inability of housewives and manufacturing concerns to obtain Sugar for processing, will the Minister for Trade and Customs urge upon the Colonial Sugar Refining Company Limited the necessity to nave a wholesale store placed at the disposal of. the people of that State?

Senator COURTICE:
ALP

– The matter that the honorable senator has raised is not new and he himself has referred to it before. The shortage of sugar in Tasmania, and in other -States, is due to several reasons. There is ample capacity for refining -sufficient sugar to meet Australia’s requirements. Consumption of sugar throughout the Commonwealth has increased in the last eighteen months by 100,000 tons, the total annual consumption now being approximately 400,000 tons. The capacity of the Australian refineries is approximately 500,000 tons a ye&t. I have taken this matter up with the representatives of the sugar industry on several occasions, and I have ascertained thai; the shortage in the various States is due mainly to industrial dislocations and disturbances. At times refineries have not been able to get sufficient coal to continue in full operation. Obviously if those, engaged in the production of any commodity in this country do not maintain that pro*ductioh, .there will be a shortage of that commodity. That is the reason for the scarcity of sugar. I shall impress upon the Colonial Sugar Refining Company Limited the necessity to ensure that supplies of sugar to Tasmania shall not be curtailed any more than is absolutely necessary.

page 572

QUESTION

AERONAUTICAL RESEARCH

Senator MURRAY:
TASMANIA

– Has the Minister for Supply and Development seen the recent press statements by Sir Ben Lockspeiser, chief scientist to the

British -Ministry of Supply, who is. in Australia attending a conference of the Commonwealth Advisory Aeronautical Research Council in Melbourne, that tha need for hydro-electric power to -operate large wind tunnels for testing supersonic engines and equipment is one of the first dispersal aspects being discussed by the Council and that the location nf this work -could possibly be Tasmania, New Zealand or Canada, although tha actual site was a matter for the governments concerned? Will the Minister bring to the notice of Cabinet ‘his -own knowledge of the hydro-electric resources of Tasmania gained during his recent visit to that -State .and the statement by the Tasmanian Hydro-Electric Commissioner that power for this project could be developed more quickly and at less cost in Tasmania than in any other country in the southern hemisphere?

Senator ARMSTRONG:
Minister for Supply and Development · NEW SOUTH WALES · ALP

– I am acquainted with the statements of Sir Ben Lockspeiser regarding the great advantage of a plentiful supply of cheap hydro-electric power in connexion with wind-tunnel tests. I shall take this matter up with Cabinet as the honorable senator has suggested. Nothing definite has happened yet, but if the plan develops I shall certainly give full .consideration to the natural advantages of Tasmania for the production of hydroelectric power.

page 572

QUESTION

COAL

Supplies is SOUTH Australia and Victoria.

Senator O’FLAHERTY:
SOUTH AUSTRALIA

– I direct a question to the Minister for Shipping and Fuel regarding deliveries of’ coal to South Australia. Is the Minister aware that, in that State, train services have been seriously curtailed and the supply of gas has been restricted because of- short-, ages of coal ? Is he aware that statements have been made that although the ekes of coal used in South Australia is now being produced in New South Wales in greater quantities than previously the Joint Coal Board has not maintained the volume of supplies to South Australia that was more or less promised by the Minister at a conference! I believe that the quantity promised was 19,000 tons a week. Will the Minister make a statement to the Senate, if not to-day then at a future date, setting out the quantities of coal that have been forwarded to South Australia since the agreement I have mentioned was reached with the Premier of that State?

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

– The subject of coal supplies for South Australia and Victoria has not been a happy one in recent weeks. The agreement which I made with the Premier of South Australia was that, on a stated basis of production, a certain amount of coal should go to South Australia and Victoria. That agreement was kept while the coal was available. I am prepared to make a statement to the Senate on this subject to-morrow if I can obtain the necessary details by then. I point out that the agreement mentioned was contingent upon the development of coal resources in South Australia–

Senator O’FLAHERTY:
SOUTH AUSTRALIA · ALP

– And upon the establishment of reserve stocks.

Senator ASHLEY:

– That is so. If there is rationing of black coal in South Australia, all I can say is that such a position should not obtain. Certain reserve stocks were supposed to be built up from the quantities allocated to that State in order to avoid the imposition of rationing. I am not aware of conditions in South Australia, and I do not know whether the Government of that State has been able to transport coal from its own coal fields to the metropolitan area as was promised.

Senator SHEEHAN:
VICTORIA

– Prefacing a question which I wish to ask the Minister for Shipping and Fuel, I mention that recently I discussed with an officer of the Victorian railways the inadequacy of country train services in that State. I drew attention to the fact that on the main lines to Bendigo and Ballarat oil was being utilized as fuel for the engines, and I suggested, therefore, that the department could not blame the lack of coal for its failure to improve train services on those lines. I was advised that when the department utilized oil for fuel on the railways it was denied a corresponding proportion of coal supplies. Is that statement correct? If so, what is the reason for reducing the sup plies of coal to the Victorian railways because those services consume a certain quantity of oil?

Senator ASHLEY:

– No condition whatever is placed upon the Government of Victoria in respect of the matter mentioned by the honorable senator. Thearrangement entered into with that State was similar to that entered into with. South Australia, namely, that a certain, quota of coal would be delivered each, week, and that the obligation rested upon, the State to build up a reserve. Any decision to use oil instead of coal is a. matter entirely for the State GovernmentImmediately coal is delivered to either South Australia or Victoria, its distribution and the uses to which it shall be allocated - whether for railways, gasmaking or any other purpose - are matters entirely for the State government.

page 573

QUESTION

SHIPPING

Queensland and Tasmanian Services

Senator COOPER:

– Is the Minister for Shipping and Fuel aware that, during the recent Communist-inspired strike of railwaymen and waterside workers in Queensland, essential goods consigned to Queensland ports were carried on to Sydney and unloaded at that port? Will the Minister assist in arranging for such goods as have not already been disposed of in Sydney to be shipped back to their original ports of destination? Is he also aware that manufactured goods and raw materials destined for Queensland, valued at £250,000, are piled up at southern ports, and that the lack of these goods is seriously holding up the housing programme and causing unemployment in Queensland? Will the Minister consider giving first priority for the shipment of these goods to Queensland until the lag is overtaken?

Senator ASHLEY:
ALP

– I am unable to say whether the recent industrial trouble in Queensland was inspired by Communists as stated by the honorable senator. Communists are associated with the Australian Country party and the Liberal party, and I should think that the Leader of the Opposition would have more information in his possession concerning Communis* activities in the recent Queensland disturbance than I have. With regard to the other portion of his question concerning cargo on overseas vessels, which had been consigned to Queensland and was unloaded, or partially unloaded, in Sydney, immediately I received advice on the 2nd April that not only railway employees but also waterside workers would resume work this week, I informed representatives of the overseas shipping companies of the fact and requested that no further Queensland cargo be unloaded in’ Sydney. The situation presented considerable difficulties. Earlier, representations had been made, and considerable pressure exerted, by the overseas shipping companies to permit cargo consigned to Queensland to be unloaded at Sydney during the Queensland dispute. In my opinion their request was justified because overseas vessels are required to transport goods including food to Britain and other parts of the world, and it is essential that they be kept moving. If agreement had not been reached for them to discharge Queensland cargo at Sydney that cargo would have been carried around the world. However, it was agreed _ that Queensland cargo should be unloaded at Sydney. Immediately that happened Queensland merchants lodged a flood of protests, although the removal of the cargo was not really a matter for the Government, or for the Stevedoring Industry Commission, which exercises control of shipping.

Senator O’Sullivan:

– It is the responsibility of the Government to see that law and order are maintained on the waterfront.

Senator ASHLEY:

– If the honorable senator will observe law and order for a moment I shall be able to furnish an explanation which will, I think, satisfy the Senate. I should have expected the honorable senator to endeavour to preserve order because of his connexion with the law. I propose to read the text of a telegram sent by the representatives of the overseas shipping companies to the merchants who had been pressing that Queensland cargo should not be discharged at Sydney. It is as follows : -

Overseas shipowners have done everything possible by constitutional means and at heavy cost to avoid loss or embarrassment to consignees by holding vessels, in some cases with only 6inall quantities of Queensland cargo to discharge, in the hope that the strike would be finished. There are other urgent commitments elsewhere in Australia to cater for, and shipowners have been reluctantly compelled in accordance with bills of lading to take .action to discharge Queensland cargo Sydney in order to make vessels free to meet their commitments. Their action can have no bearing on issue of Queensland strike although regrettably it throws some financial burden upon owners of the cargo in having to provide for its acceptance in Sydney. I think you will appreciate from foregoing that overseas shipowners have given all possible consideration consignees’ interests.

That telegram indicates the difficulty of the position and the steps taken to overcome it. I assure the Leader of the Opposition and members of the Senate generally that everything possible has been done to expedite the transhipment of cargo consigned to Queensland which was unloaded at Sydney. Finally, the assertion that 250,000 tons of cargo have’ piled up in southern ports awaiting shipment to Queensland is a gross exaggeration. It is in keeping with the political pressure that has been applied during this unfortunate dispute in Queensland. I have received correspondence and telegrams from every member of Parliament in Queensland in regard to the matter, and have done my utmost to alleviate the position as far as possible. I assure honorable senators, and the Leader of the Opposition particularly, that all steps possible are being taken to relieve the situation in Queensland. The vessels that were tied up at various ports began discharging their cargoes yesterday, and provision has been made for ships from southern ports to proceed to Queensland as early as possible.

Senator AYLETT:
TASMANIA

– I ask the Minister for Shipping and Fuel whether he is aware that F. H. Stephens Proprietary Limited has notified its clients that it cannot any longer carry certain commodities by sea owing to losses due to pilfering? As these commodities, which include spirits and tobacco, are urgently required in Tasmania, can the Minister say whether other shipping companies are adopting a similar attitude? If so, what steps, if any, can be taken to ensure that commodities urgently required in

Tasmania shall be shipped according to schedule ?

Senator ASHLEY:

– I am not aware of the practice adopted to protect the cargoes referred to. That is a matter entirely for the individual shipping companies. However, I shall ascertain what the practice is and furnish the honorable senator with a reply to his question as early as possible.

page 575

QUESTION

PETROL

Senator FRASER:
WESTERN AUSTRALIA

– Can the Minister for Shipping and Fuel supply the Senate with information regarding petrol distribution in Western Australia? I made some inquiries in regard to the allegations that have been made by the honorable member for Swan (Mr. Hamilton), and I should like the Minister to make a statement to the Senate at some future date as to who, if any one, is responsible for the distribution of petrol in agricultural areas, Representations have been made to me, by various roads boards that the petrol allowance is inadequate. It may be that the oil companies themselves do not hold sufficient stocks. Will the Minister make a statement showing the petrol allocation to agricultural areas in Western Australia, and indicating who is responsible for any lack of petrol?

Senator ASHLEY:
ALP

– There is a shortage of petrol in rural areas in not only Western Australia, hut also all the other States. When it became necessary to tighten petrol rationing a suggestion was made that we should follow Great Britain’s example and forbid the use of petrol by private car owners. I resisted that suggestion, because I believed that owners of private oars had made considerable sacrifices during the war -years when most of them were obliged to immobilize their vehicles. I believed that if the amount of petrol available for distribution was to be further reduced the reduction should be borne by all sections. My proposal was adopted, and, consequently, the quantity available to all users was further curtailed. The alternative would have been to deny to private motor car owners the use of their vehicles altogether. We should have had to say to them, “ In future, you cannot drive your cars at all. You will have to jack them up “. I believe that that would be a grave injustice. Statements are published from time to time that there is a possibility of petrol supplies improving, but they are entirely incorrect. The position with respect to petrol supplies has further deteriorated only within the last week or so. I suggest that essential users of petrol in rural areas who are unable to obtain their requirements should apply to the local fuel authorities. I have no doubt that if that be done in cases of the kind mentioned by the honorable senator, sufficient petrol will be’ made available to them. I assure the Senate that the prospects for the future are not bright. Indeed, we shall be doing very well if we oan maintain sufficient supplies to continue the allowance being made at present to private motor car owners and essential users of petrol.

page 575

QUESTION

BRISBANE GENERAL POST OFFICE

Senator RANKIN:
QUEENSLAND

– I ask the PostmasterGeneral whether any progress -has been made towards the provision of a new General Post Office in Brisbane. I draw his attention to the following statement which appears on page 20 of the report for 1946 of the Postmaster-General’s Department : -

Flans are being prepared for the modernization of the Chief Telegraph Offices in Sydney, Melbourne and Adelaide . . . During the year, the work of modernizing the Chief Telegraph Office, Hobart, and the Telegraph Operating Room at Launceston was completed . . . Progress has been made with the plans for the modernization of the Chief Telegraph Office, Perth.

I am unable to find any reference in the report to work in progress, or work being planned, for Brisbane, and I should like to know if such work is included in the following reference made on page 28 of the department’s report: -

It is anticipated that the programme which will extend over three years will involve expenditure of the order of £30,000,000.

Senator CAMERON:
Postmaster-General · VICTORIA · ALP

– ‘Since the report to which the honorable senator referred was issued, the whole position with respect to the provision of a new post office at Brisbane has been reconsidered. At the moment I am not able to say exactly what has been decided, but I shall inquire into the matter. However, the honorable senator can rest assured that, so far as is physically possible, we shall expedite the building of a new post office at Brisbane, which I believe to be. very’ badly needed. Indeed, I shall derive as much satisfaction as the honorable senator in seeing that work commenced as early as possible.

page 576

QUESTION

COMMONWEALTH RAILWAYS

Sales by Stores Department.

Senator CRITCHLEY:
SOUTH AUSTRALIA

– I ask the Minister representing the Minister for the Interior what were the profits from sales by the Stores Department of the Commonwealth Railways at Port Augusta for each of the years 1938-39 to 1946-47, and for the current year to date. To what funds are the profits from these sales allocated, and what was the allocation to each fund in the years mentioned ?

Senator COURTICE:
ALP

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

page 576

QUESTION

TRACTORS

Senator BEERWORTH:
SOUTH AUSTRALIA

– Can the Minister for Trade and Customs say how many agricultural tractors were imported in the year ended the 31st December, 1947? What is the method or basis of distributing the imported tractors to the various States? Are spare parts for replacements necessitated by wear and breakages arriving in sufficient quantities to prevent undue delay to primary producers ?

Senator COURTICE:
ALP

– I do not know the number of tractors imported during the year mentioned, but I can assure the honorable senator that the value of these machines to the economy of this country is fully appreciated by the Government. An authority has been set up to deal with tractors with a view to supplying adequately the needs of primary producers particularly. The whole question is receiving the very earnest attention of the Government, and I am confident that there is general satisfaction with what is being done. Tractors are allocated to the States by the Commonwealth, and distribution within the States is the responsibility of the State authorities.

page 576

MINISTERIAL AND DEPARTMENTAL CHANGES

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

by leave - I desire to inform honorable senators that, as the result of the recent decision of the Government to amend the Supply and Development Act 1939, consideration has been given to the future functions of the Department of Supply and Shipping and the Department of Munitions, and that, in order to bring about a better grouping of the activities of these two departments, a rearrangement of administrative functions has been decided upon. Accordingly, the approval of the GovernorGeneralinCouncil was sought to abolish the two departments referred to, and to establish, in lieu thereof, a Department of Shipping and Fuel and a Department of Supply and Development. The Department of Shipping and Fuel will be responsible for shipping, including stevedoring labour and operations, coal production and distribution, liquid fuels and petroleum products, and relative matters. The Department of Supply and Development will deal with the procurement of supplies, the manufacture of munitions, mineral resources, disposals, and shipbuilding. The administrative control of jute and flax has been transferred to the Minister for Commerce and Agriculture.

The. Governor-General has been pleased to approve the recommendation that Senator the Honorable W. P. Ashley be entrusted with the administration of the the Department of Shipping and Fuel, and that Senator the Honorable J. I. Armstrong shall administer the Department of Supply and Development. The Minister for Post-war Reconstruction (Mr. Dedman) will represent the two new ministries in the House of Representatives.

page 576

ROYAL VISIT TO AUSTRALIA

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

by leave - It is my great pleasure formally to convey to honorable senators this message which has been received through His Excellency the Governor-General from His Majesty the King: -

In response to a suggestion made by his Prime Ministers in New Zealand and Australia, the King has graciously consented to visit these countries in the early part of 1949. Bis Majesty will be accompanied by the Queen and the Princess Margaret.

I invite all honorable senators to cooperate in ensuring that the Royal visit shall be a period which Their Majesties and Her Royal Highness will always remember with pleasure as well as one memorable in the history of this country. A committee of Cabinet, consisting of the Prime Minister (Mr. Chifley), the Minister for’ External Affairs (Dr. Evatt) and myself, will have general supervision of the arrangements. The Minister for Supply and Development (.Senator Armstrong) has been appointed Commonwealth Minister in charge of the Royal visit and will be ex officio a member of the committee. I am not yet in a position to give the exact time of the visit or any details of the itinerary. These will be worked out by the Cabinet committee.

Senator COOPER:
Leader of the Opposition · Queensland

by leave - The members of the Opposition join with other honorable senators in welcoming the notification just given by the Minister for Shipping and Fuel (Senator Ashley) that Their Majesties the King and Queen and the Princess Margaret, will visit Australia and New Zealand in the early part of 1949. We assure the Government that we shall be only too pleased to do everything possible to make the visit of Their Majesties and the Princess Margaret a very happy and memorable one. I hope that those who will be in charge of the arrangements for the Royal visit will ascertain whether it will be possible for Their Majesties and the Princess Margaret to visit some of the smaller towns and cities of the Commonwealth instead of confining the itinerary to the capital cities.

page 577

QUESTION

WAR SERVICE HOMES

Senator COOPER:

asked the Minister representing the Minister for Works and Housing, upon notice -

  1. Is it a fact that until recently property valuations made by the War Service Homes Commission were accepted by Commonwealth sub-treasuries ?
  2. Is it a fact that an ex-serviceman who now desires to buy a house, and who receives finance through the War Service Homes Commission, has to pay for two valuations, namely, one made by the Commission and the other by a private valuer for the sub-treasury f
  3. If so, (a) will the .”Minister inform the Senate why ex-servicemen have to pay for a second valuation which was not found necessary until recently, and (6) will the Minister take action to remedy this position?
Senator ARMSTRONG:
ALP

– The Minister for Works and Housing has supplied the following answers: -

  1. Yes.
  2. Two valuations would be required only where the ex-serviceman completes his negotiation with the vendor prior to approaching the War Service Homes Division of my department for assistance. Where the exserviceman makes application under the War Service Homes Act prior to completing his negotiations, with the vendor, the valuation required by theDirector of War Service Homes to ensure that the property represents a satisfactory security in respect of which assistance could he granted) would be accepted by Treasury officials asevidence of value in determining the saleprice at which the transaction could beapproved. Irrespective of how an exserviceman proposes to finance the purchase of a property, a valuation for Treasury purposes would be necessary, but where assistance is being obtained under the War Service Homes Act the valuation carried out on behalf of the Director of War Service Homes would be accepted and a further valuation on the appropriate Treasury form would not be required.
  3. See answer to No. 2.

page 577

QUESTION

TRADE WITH CANADA

Senator O’SULLIVAN:

asked the Minister for Trade and Customs, upon notice -

  1. Has the Minister seen the statement or the Canadian High Commissioner to Australia, Mr. K. A. Greene, that a special Canadian import board has been set up to foster trade between Australia and Canada?
  2. Will the Minister inform the Senate what steps Australia has taken to foster trade between the two dominions and what results are anticipated?
Senator COURTICE:
ALP

– The answers to the honorable senator’s questions are as follows : -

  1. I have not seen the statement referred to; however, it is understood that any such statement would refer to an import division set up since the war in the Canadian Department of Trade and Commerce for the purpose of fostering and supervising imports into Canada from all sources.
  2. Australian Trade Commissioners now function at Ottawa and Vancouver. Their main functions are to watch for and! report opportunities in the Canadian market -for Australian goods and to promote Australian exports to Canada to the maximum: possible extent. The range of Australian goods in which it has been possible in the past to develop a worthwhile export trade to Canada is not extensive, but it is hoped that, as more goods become available for export, the efforts of our Trade Commissioners will result in a wider range of exports and greater quantities of individual commodities.

page 578

QUESTION

TUBERCULOSIS

War Widows

Senator TANGNEY:
WESTERN AUSTRALIA

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

  1. Is it a fact that at a conference of the War Widows Guild held in Melbourne last year statements were made regarding the growing incidence of incipient tuberculosis among war widows?
  2. Is it a fact that repatriation hospitals in the various States have accommodation available for ex-servicewomen suffering from tuberculosis and that such wards are not being used to their full capacity?
  3. If so, can provision be made in these chest wards to treat war widows in the early stages of tuberculosis?
Senator CAMERON:
ALP

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

  1. No evidence has come to my knowledge that there is a growing incidence of tuberculosis among war widows.
  2. There is a limited amount of accommodation being made available in the various States on the mainland for ex-servicemen suffering from tuberculosis. The number of intakes is increasing as cases come under notice.
  3. It is hoped in the early future to review the experience gained with the treatment now being provided for war widows and to make greater accommodation available to exservicewomen in tuberculosis wards in the lightof the knowledge thus gained.

page 578

QUESTION

COMMUNISM

Senator O’SULLIVAN:

asked the Min ister representing the Prime Minister, upon notice -

  1. Have any inquiries been made by the Commonwealth Security Service or other Commonwealth authorities into reports that the staffs of certain Commonwealth departments, including Post-war Reconstruction and Information include Communists?
  2. If so, what was the result of such inquiries and what action, if any, has been taken?
  3. If not, will the Prime Minister direct that such investigations be undertaken ?
Senator ASHLEY:
ALP

– The Prime Minister has supplied the following answer : -

The matter of security safeguards in the Commonwealth Public Service is constantly kept under review by the Commonwealth Investigation Service, in co-operation with the Public Service Board and with other Commonwealth departments. It is considered undesirable to make public information about specific security activities because the very disclosure of such information prejudices the success of the activities concerned.

page 578

CUSTOMS TARIFF BILL 1948

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator COURTICE:
QueenslandMinister for Trade and Customs · ALP

– I move -

That the hill be now read a second time.

The Tariff Schedule to which this bill relates was introduced on the 14th November, 1946. The schedule formed part of the Government’s 1946 budget programme. Reductions of duty were provided as follows:1s. 6d. a gallon on methylated spirits; elimination of duty of 6d. per lb. on dry batteries and dry cells of less than 6 volts;1d. a gallon on petrol and allied petroleum products, and1s. per lb. on carbonic acid . gas. With the exception of the reductions of duty on petrol and allied products, very little loss of customs revenue was involved, as the reductions were consequential upon reductions of excise duty on similar goods. However, with regard to petrol and petroleum products, the major revenue is derived from customs duties, and it was anticipated that the reduction of1d. a gollon would affect revenue by approximately £1,300,000 during a complete financial year.

One item which is not entirely of a revenue nature appears in the schedule, and inrespect of it no reduction of rates of duty was involved. I refer to Tariff Item 19 relating to tobacco leaf. This item was amended to provide for a varying percentage of Australian leaf to be required to be blended with imported leaf for the purpose of affording concessional rates of duty on tobacco leaf imported for blending with Australian tobacco leaf. Since 1938 tariff item 19 had provided that a concessional rate of duty should apply to imported ‘leaf if blended with 15 per cent, of Australian, leaf but in recent years the quantity of tobacco leaf produced in Autralia has fallen considerably, and item 19, as amended, provides for the- minimum percentage of Australian leaf to be varied in accordance with the size of the local crop. The alteration was supported by the Australian Tobacco Board on which the tobaccogrowers were represented.

A memorandum has been prepared and distributed to honorable senators showing a comparison between the rates of duty under each item appearing in the bill, and those operating under the Customs Tariff 1933-1939. In certain cases there were changes in the items during the war. A tariff debate was not found practicable during the war, but the collection of duties was validated. Those changes have been included in the memorandum of alterations in order to provide honorable senators with a complete picture of the tariff alterations since the last tariff debate. This bill is the first of a number of tariff measures which the Senate will be asked to consider.

Discussion on the measures will be divided broadly into five groups. The first group comprises Customs Tariff Bill 1948, Customs Tariff (Southern Rhodesian Preference) Bill 1948 and Excise Tariff Bill 1948, and relates to resolutions introduced on the 14th November, 1946. The second group will comprise Excise Tariff Bill (No. 2) 1948, relating to Excise Tariff resolution of the 4th June, 1947. The third group will consist of Customs Tariff Bill (No. 2) 1948, Customs Tariff (New Zealand Preference) Bill 1948, Customs Tariff (Canadian Preference) Bill 1948 and Customs Tariff (Exchange Adjustment) Act Repeal Bill 1948, which cover tariff resolutions of the 14th November, 1947. The fourth group of bills to be considered will incorporate tariff schedules of the 18th February, 1948. The fifth group of bills will relate to the schedules which were introduced consequent upon the Geneva trade discussions.

Debate, (on motion by Senator Cooper) adjourned.

page 579

CUSTOMS TARIFF (SOUTHERN RHODESIAN PREFERENCE) BILL 1948

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator COURTICE:
QueenslandMinister for Trade and Customs · ALP

– I move -

That the hill he now read a second time.

The tariff schedule to which this bill relates was introduced on the 14th November, 1946.

The Customs Tariff (Southern Rhodesian Preference) Act 1941 provides for a concessional rate of duty on tobacco leaf when imported from Southern Rhodesia. The description of the goods follows the wording of item 19 appearing in the Customs Tariff. Because of the alteration of the wording of tariff item 19 effected by the Customs Tariff Bill 1948, it is necessary to make a consequential alteration of the item in the schedule to the Customs Tariff (Southern Rhodesian Preference) Act. The alteration referred to was the provision that the minimum quantity of Australian tobacco leaf which could he blended with imported leaf in order to qualify the latter for concessional rates of duty was to be varied in accordance with the size of the Australian tobacco crop. It was previously provided that a fixed percentage of Australian leaf was required to be blended with the imported leaf.

Debate (on motion by Senator Cooper) adjourned.

page 579

EXCISE TARIFF BILL 1948

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator COURTICE:
Minister for Trade and Customs · Queensland · ALP

– I move -

That the hill be now read a second time.

The tariff schedule to which this bill relates was introduced on the 14th November, 1946. The amendments proposed to be made to the schedule to the Excise Tariff are associated with the Customs Tariff Bill 194S, which effected reductions of duty as a part of the Government’s 1946 budget programme. The reduction of Id. a gallon in the rates of duty provided for in item 11 in the schedule to this bill is complementary to the reduction of Id. a gallon in customs duties on petrol and allied petroleum products made by the Customs Tariff Bill 1948. Honorable senators will note from the memorandum of alterations that a number ( of changes in excise item 11 have -occurred since it was enacted in 1939. Briefly, the position is that the rates were first increased by 3d. a gallon from the ;3rd May, 1940. as a revenue measure.

On the 21st August, 1940, the item was amended to cover coal tar and coke oven distillates other than benzol, and the rates on lliquid fuel produced from both indigenous shale and coal were reduced in order to encourage and speed up production of fuel in Australia. At the time the Menzies Government gave an assurance to producers that, provided that they were ducing by the 21st August, 1942, they would be given protection against imported petrol for a period of fifteen years. The item made provision accordingly. War-time circumstances prevented some producers from commencing production by the date stipulated and the item was subsequently amended to remove this condition. The amendment of the 5th March, 1942, was effected to make the item more comprehensive. With regard to the amendment to item 1, legal advice has been received that it is desirable to incorporate a definition of beer in the Excise Tariff Act.

Debate (on motion by Senator Cooper) adjourned.

page 580

EXCISE TARIFF BILL (No. 2) 1948

Bill received from the House of Representatives. (Standing and Sessional Orders suspended.

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

Second Reading

Senator COURTICE:
Minister for Trade and Customs · Queensland · ALP

– I move -

That the bill bo now rend a second time.

The tariff schedule to which this bill relates was introduced on the 4th June, 1947. The purpose of the bill is- to confirm the Government’s decision to reduce the rate of excise duty On spirit used in the fortification of wine, consequent upon the cessation of payment of wine export bounty.

Under the provisions of the Wine Export Bounty Act 1939-1944, an amount of 2s. 6d. a gallon from the excise duty imposed on spirit for the fortification of wine was transferred to a Trust Account from which bounty had been paid. With the cessation of the payment of bounty by the expiration of the Wine Export Bounty Act 1939-1944, it was unnecessary to transfer this amount from excise collections, and it was therefore decided to reduce the rate of duty on fortifying spirit at 2s. 6d. a gallon. A further amendment of the item was the elimination of the- provision for special rates of duty on spirit used in fortifying grape must prior to the 13th March, 1930. The quantity of such spirit yet to be cleared from bond is negligible, and the continuance of special provision was considered not necessary. The simplification of the item results in a flat rate of 4s. a gallon being applied to spirit for the fortification of wine.

Debate (on motion by Senator Cooper) adjourned.

page 580

CUSTOMS TARIFF BILL (No. 2) 1948

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator COURTICE:
QueenslandMinister for Trade and Customs · ALP

– I move -

That the bill be now read a second time.

This bil is the- first of a group of four tariff bills, namely, Customs Tariff (Wo. *> 1MB, Customs Tariff’ (New Zealand Preference) 1948-, Customs- Tariff (Canadian, Preference) 1948 and Customs’ Tariff (Exchange Adjustment) Act Repeal Act 1948 which- relate to tariff resolutions introduced on the 14th November, 1947. The Government made certain decisions in respect of the basis of value for duty of imported goods which were jointly implemented by four tariff proposals tabled on the 14th November, 1947. I propose now to refer in detail to those decisions, and to allow what I say to serve mainly as an explanation of the four tariff bills.

Towards the end of last year the Parliament approved a bill to amend the Customs Act to provide for the calculation of value for duty of imported goods in Australian currency, and to abolish the addition of the statutory 10 per cent, to the f.o.b. value of imported goods. Prior to that amendment, the Customs Act provided that all duties should be paid in British currency, and that the value of goods shown on invoices should be converted to British currency. While Australian currency was on par with that of the United Kingdom the position was satisfactory, but when Australian currency was depreciated in 1930 the paradoxical procedure arose of calculating the value for duty of goods in United Kingdom currency, applying k rate of duty of, say, 10 per cent., and accepting the resultant figure as duty in Australian currency. A further practice in operation was the loading of the f.o.b. price of imported goods with a statutory charge of 10 per cent, before arriving at the value for duty. That provision appeared in the original Customs Act of 1901, but lost its significance in later years. The result of the amendment to the Customs Act passed at the end of last year, was to increase the figure at which the value for duty was expressed. For example, a previous value for duty of £110 sterling is now expressed as £ A.125. This would have resulted in increased duties being collected had the tariff ad valorem rates remained unchanged. As the amendment to the Customs Act was made purely for administrative purposes, it was necessary to reduce ad valorem rates by 12 per cent, so as to ensure that approximately the same amount of duty as- previously would be collected. Had the exact 12 per cent, reduction been applied in all instances-, however, many fractional1 rates would have resulted, and it was decided’ to- eliminate these by adjusting all reduced rates- to the nearest 2’-$ per cent. The maximum variation from the formula is lj per cent, increase or decrease; in most instances it is considerably smaller.

It was also decided, consequent upon the expression of value for duty in Australian currency, that it would be preferable to eliminate the provision for exchange adjustment and show in the tariff the actual rates which are operating under existing exchange, conditions. For example, a British preferential tariff rate which appeared in the tariff at 35 per cent., but which was subject to exchange adjustment of 25 per cent., resulted in a net rate of 26£ per cent, being paid. Applying the further 12 per cent, reduction as previously described, the rate now appears as 22$ per cent. All rates of duty which were previously subject to exchange adjustment are now shown at their net level, and consequently it is also necessary to eliminate the provisions for exchange adjustment. That is the purpose of the Customs Tariff (Exchange Adjustment) Act Repeal Bill 1948, which will be dealt with shortly. Exchange correctives wherever they appeared in the tariff also have been removed.

In respect of exchange correctives, however, no change in the rates of duty, other than the 12 per cent, alteration for value for duty purposes, has been necessary, as the net operative rate is shown in the tariff. Exchange correctives were based on pre-war conditions, and in the event of a change occurring in the exchange position of Australia or other countries, appropriate action can be taken in the light of current conditions.

It will be noted that the bill includes two schedules. The reason is that at the time of the introduction of the relative tariff resolution the volume of printing had to be reduced. In the majority of instances, only the rates of duty were required to be altered in accordance with the formula, and the first . schedule merely specified the item number and the new rates of duty. In the circumstances, it was not considered necessary in the memorandum of alterations to set out every item in the first schedule with the proposed and previous rates of duty. There are a few exceptions to the general principle which the reductions have followed. These are shown, with the reasons therefor, in the memorandum of alterations.

The second schedule relates to items the wording of which it has been necessary to alter somewhat, and to items which had been amended by tariff resolutions prior to the 14th November, 1947. These have been divided for explanatory purposes into groups A and B. Group A relates to items the values previously appearing in which were expressed in United Kingdom currency and have had to be altered to Australian currency. Certain items have been included in group B of the second schedule because they had been amended by tariff resolutions prior to the amendment of the 14th November, 1947. For this reason, all changes in the rates since the items were last enacted have been shown in full.

Debate (on motion by Senator COOPER) adjourned.

page 582

CUSTOMS TARIFF (NEW ZEALAND PREFERENCE) BILL 1948

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator COURTICE:
QueenslandMinister for Trade and Customs · ALP

– I move -

That thu bill be now rend a second time.

The tariff schedule to which this bill relates was introduced on the 14th November, .1947. As I explained in my earlier speech on the Customs Tariff Bill (No. 2) 1948, it was necessary to adjust ad valorem rates of duty consequent upon the amendment of the Customs Act to provide for the calculation of value for duty of Australian currency. Certain items in the Customs Tariff (New Zealand Preference) Act provide for ad valorem rates of duty, and the reduction of the rates by 12 per cent, is complementary to the similar principle of reduction which the Senate is considering in dealing with Customs Tariff Bill (No. 2) 1948.

Debate (on motion by Senator Cooper) adjourned.

page 582

CUSTOMS TARIFF (CANADIAN PREFERENCE) BILL 1948

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator COURTICE:
QueenslandMinister for Trade and Customs · ALP

– I move -

That the bill be now read a second time.

The tariff schedule to which this bill relates was introduced on the 14th November, 1947. The purpose of this bill is similar to that of the Customs Tariff (New Zealand Preference) Bill 1948. Certain items in the Customs Tariff (Canadian Preference) Act are subject to ad valorem, duties and the rates have been reduced by 12 per cent, in view of the new basis for calculating value for duty.

Debate (on motion by Senator Cooper) adjourned.

page 582

CUSTOMS TARIFF (EXCHANGE ADJUSTMENT) ACT REPEAL BILL 1948

Bill received from the House of Representatives.

Standing and Sessional Orders suspended. .

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

Second Reading

Senator COURTICE:
QueenslandMinister for Trade and Customs · ALP

– I move -

That the bill be now read a second time.

This bill is complementary to Customs Tariff Bill (No. 2) 1948, which is also being dealt with by the Senate. As honorable senators will note, the bill eliminates exchange adjustment on all relevant items appearing in the Customs Tariff Bill. Exchange adjustment was, it fact, eliminated by the introduction of tariff proposals of the 14th November, 1.947, and this bill is for the purpose of enabling legislative authority to be given for the action then taken.

Honorable senators will, no doubt, be aware that provision has existed since 1933 for the automatic adjustment of certain duties in the event of an appreciation of Australian currency relative to United Kingdom currency. In 1936, another method was evolved by which the rates of certain items were subjected to variation in accordance with a formula known as “ the exchange corrective “. The two systems worked concurrently in relation to the Customs Tariff, but the position was anomalous in some respects and led to a certain amount of confusion both in Australia and overseas. Now that the value for duty of goods imported into Australia is to be expressed in Australian currency, it is thought that the rates of duty- shown in the Australian tariff should be expressed at their net level under existing exchange conditions. Indeed, honorable senators will realize that it is impracticable to negotiate rates of duty with other countries, leading towards trade agreements, if the rates are subject to automatic variation and it was on the basis of effective “ net “ rates that the interim tariff agreement was recently made at Geneva.

Debate (on motion by Senator Cooper) adjourned.

page 583

CUSTOMS TARIFF BILL (No. 4) 1948

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator COURTICE:
QueenslandMinister for Trade and Customs · ALP

. I move -

That the hill he now read a second time.

As I outlined in my speech on the Customs Tariff Bill 1948, it was proposed to deal broadly with the tariff measures in groups. This bill is the first in a group of three which relate to tariff resolutions of the 18th February, 1948, and the memorandum of alterations which has been circulated shows the amendments effected by each bill.

Certain of the items in Customs Tariff Bill No. 4 were part of the Government’s war-time budget programmes and the memorandum of alterations shows all the increases effected in these particular items, since rates were last debated. The budget items are numbers 1, 3 (b) (2), 3 (i), 20, 21, 22, 53 (b), 73, 320 (c) (1) (b), 334 (v), and 334 (x). The revenue involved from the aspect of customs duties, however, is not large, as the increases with two exceptions were complementary to increases of excise duty which were the main sources of increased revenue. The amendment to item 320 (c) (1) (&) represented a reduction of duty on sub-standard cinematograph film. The revenue duties on dates were increased to 4d. per lb. by a previous government in May, 1940, and reduced .by it to the present rate of 3d. per lb. in September, 1941. A brief explanation of the other amendments in the bill will be found in the memorandum of alterations.

Debate (on motion by Senator Cooper) adjourned.

page 583

CUSTOMS TARIFF (CANADIAN PREFERENCE) BILL (No. 3) 1948

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator COURTICE:
QueenslandMinister for Trade and Customs · ALP

– I move -

That the bill he now read a second time.

The tariff schedule to which this bill relates was introduced on the 18th February, 1948. Under the CanadaAustralia Trade Agreement of 1931, Australia undertook to afford to Canada a preference of 17-J per cent, as against the general tariff rate on certain gears when incorporatedin assemblies. Atthe time the agreement was entered into, the particular gears were classified under tariffitem359 (d) (4), under which the difference between the intermediate and generaltariff rate provided the necessary 171/2 per cent. margin of preference. Canada was accorded the benefit of the intermediate tariff rate.

A change has since occurred in the classification of these gears and the intermediate tariff rate under the item under which they are now classifiable, namely, item 359 (f) (3), does not provide the preferential margin which Australia undertook to afford to Canada. Therefore, it is necessary to specify a particular rate which Canada is to receive on the gears which is the general tariff rate under item 359 (f) (.3) less 15 per cent. The previous 171/2 per cent. margin now becomes 15 per cent. owing to the new basis for calculating value for duty. The amendment is really a machinery measure to maintain Australia’s commitmentto Canada.

Debate (on motion by Senator Cooper) adjourned.

page 584

EXCISE TARIFF BILL (No. 3) 1948

Bill received from the House ofRepresentatives.

Standing and Sessional Orders suspended.

Bill (on motion by SenatorCourtice) read a first time.

Secondreading.

Senator COURTICE:
QueenslandMinisterfor Trade and Customs · ALP

– I move -

That the bill be now read a second time.

The tariff schedule to which this, bill relates was introduced on the 18th February, 1948. That schedule was mainly for the purpose of reintroducing previous tariff schedules inorder to facilitate a parliamentary debate. ‘Most of ‘the item’s appearing in’ this bill formed part of the Government’s earlier budget programmes and include items 2, 2 (a) to (i), 2 (o), 2 (q), 6 (a) to (d), 7, 8, 12, 14, 15 and 19.. Some of the increasesfor revenue purposes were imposed by previous governments and the memorandum of alterations shows the stages by which the duties progressed. No increases have been imposed since the budget of September, 1942.

No changes in rates of duty are involved in the other items appearing in the bill. Exciseitem 2 (l) previously provided that spirit forthe manufacture of essences paid concessional ratesof excise duty, if the essence with which it was compounded was a citrus essential oil produced from Australian raw materials. There has recently been produced a more concentrated form of citrus essential oil, namely, citrus turpeneless essential oil, and it was decided that the admixture of this oil with spirit should also entitle the spirit to a concessional rate of excise duty.

Items 3 (b) and 4 (b) are amendments of an administrative nature. Item 3 (b) previously provided , that all fusel , oil and amylic alcohol hadto bedenatured to obtain excise duty free entry for prescribed uses. It was found that denaturing in certain cases affected the resultant product and the wording of the item now permits denaturation to be dispensed with where necessary. The amendment of item 4 (b) was to bring the wordingof the excise concession on saccharineintoline with that afforded under the customs tariff. Item 6 (e) formerly provided for a levy of 6d. per cwt. from tobacco-growers for the purpose of financing the operations of the Federal Tobacco Advisory Committee, a body constituted on the recommendation of the Australian AgriculturalCouncil to further the interests of Australian tobacco-growers.

In consequence of the formation of the Australian Tobacco Board in 1942, the Australian Agricultural Council recommended that the Federal Tobacco Advisory Committee should cease to function. As the funds of the new board were to be obtained by other means there was no necessity to maintain the levy provided for under item 6 (e).

Items 10 (b) to (e) represent an extension of privileges afforded to official representatives in Australia of overseas countries. In the last few years, the field; of representation has been greatly enlarged and the exercise of provisions have been extended accordingly. Honorable senators will notethat item. 10 (D) provides that the extension of the privileges under the sub-item may be granted on a reciprocal basis.

Debate (on motion by Senator Cooper) adjourned.

page 585

CUSTOMS TARIFF BILL

(No. 3) 1948.

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator COURTICE:
QueenslandMinister for Trade and] Customs · ALP

. -Imove-

That the bill be now read a second time.

The principal tariff changes resulting from the negotiations at Geneva are contained in this bill. It will be followed by two other bills giving effect to minor changes in the Canadian and New Zealand preference rates, principally for the purpose of maintaining the relative tariff position of those countries. During the course of the debate on those bills, I shall, where required, indicate the changes which have occurred in respect to any particular item, the country with which negotiations took place and any other pertinent information which honorable senators may seek.

In addition to the tariff changes contained in the aforementioned bills, proclamations have been issued giving effect to intermediate tariff and primage alterations and also to the application of the British preferential tariff to gloves of Maltese origin. These ‘proclamations will not come directly to the notice of honorable senators during the progress of the Customs Tariff Bills. However, the comparative memorandum which has been circulated to honorable senators contains details of all the alterations which have taken place as a result of the Geneva negotiations, and should honorable senators desire to deal with. any. of the items which will not be coming up for discussion under; Customs Tariff Bills, I sug- gest that such questions be raised when the. general debate is taking place on the bill relating to Customs Tariff (No. 3) 1948. I shall endeavour, to give such information as is practicable in reply to any questions asked.

In some instances where the rate of duty has not been altered, the negotiators at Geneva dealt only with the binding against increase of the then existing rates. Such it.items are not in every instance covered by this bill. However, they are included in the comparative memorandum circulated to honorable senators.

At Geneva, the general desire of all countries was to have negotiated rates bound against increase, during the currency of the agreement. In the negotiations, Australia endeavoured to avoid the binding of the duties wherever there was the possibility of such binding detrimentally affecting Australian industry. In such cases, agreement was made only to the removal of primage duties or to a maximum margin of preference or both, and we avoided dealing in any way with the ordinary customs duties, thus retaining the liberty, if it is later found necessary, to increase the duties for protective purposes. In respect of the United Kingdom, however, this principle was departed from on certain items where it is proposed to reduce, the duties on an unbound basis. In these cases, should circumstances show that the Australian manufacturer has been detrimentallyaffected, liberty is retained to raise the duties to their previous level. Any increase, above their previous level could be doneonly as a result of a Tariff Board inquiry in accordance with pur general commitment under the. Ottawa Agreement. These unbound reductions in the ordinary duties do not, appear in the schedules attached to. the general agreements on tariffs and trade, although they appear in Customs Tariff Bill (No. 3). 1948.

The binding of the duties has, in general, been along the following lines : -

  1. Binding was accepted where the itemcovers goods which are of a type not being. manufactured in Australia and in respectof which no indication has been received by the Government that there is a likelihood of local manufacture within the next few years ; and.

    1. Where industries have been well established over a considerable number of years and it has been apparent that they have overcome their initial difficulties, a number of duties have been bound at the rates previously recommended by the Tariff Board or at a figure slightly below the Tariff Board’s recommended rates. lt will be seen, therefore, that every effort was made to complete the negotiations without detrimentally affecting Australian industry. There was a considerable number of items in the tariff concerning rates of duty’ applying to foreign countries which were much higher than the rates of duty recommended by the Tariff Board. In quite a number of these cases the duties have been brought down to the Tariff Board’s levels or to a figure still higher than that recommended by the Tariff Board.

The primage duty alterations have been extensive. Generally, wherever an item was negotiated with a foreign country, primage duties were removed from such goods originating in countries entitled to the British preferential tariff or to mostfavourednation treatment. The list of such countries now includes practically ali nations having any material external trade. Where negotiations were confined only to the United Kingdom, primage duty was removed from goods entitled to the British preferential tariff, and a corresponding reduction made in the mostfavourednation rate, this latter action being necessary in view of the necessity to avoid any increase in margins of preference.

Honorable senators will appreciate that the primage duties were introduced for revenue purposes and their removal or reduction is of revenue significance only and does not affect the general level of protection. In fact, the Tariff Board has consistently referred to the danger of primage duties being used for protective purposes, and has recommended their removal from protective items, and in its annual report for the year ended the 30th June, 1946, the board stated that “in future it will not be in the national interest to continue the pre-war practice of ignoring the protective effects of primage duties on protected articles “. However, the effects of this change in policy have not yet been reflected in tariff rates, and in no instance in the items now before us can primage be considered an integral part of the necessary protective level.

It has been suggested that the British preferential system has been seriously affected by the arrangements made in Geneva. There has been a number of reductions in the preferences that existed prior to the Geneva negotiations; but so far as Australia is concerned the number of preferences ‘brought down to a level below that required under the Ottawa Agreement is comparatively few. Such action has been taken only with the full consent of the United Kingdom Government. A large number of the items carried a margin of preference which was in excess of that required under the Ottawa Agreement. There are several reasons for this. For example, exchange adjustment, when it operated, applied only to the British preferential tariff ; consequently, on all protective rates of duty the British preference was increased to the degree of one-quarter of the British preferential tariff rate. There are additional preferences in primage duties, a number of British goods being exempt from duty or subject to 5 per cent, primage duty when goods of foreign origin were subject to a full 10 per cent, primage duty. Also, in a number of cases the intermediate tariff rate was not operative and all foreign countries were subject to the general tariff rate.

As a rule the difference between the British preferential tariff and the intermediate tariff represented the Ottawa margin and the difference between the intermediate tariff and the general tariff represented the added preference. This practice was followed so that countries which desire to be placed on the intermediate tariff should pay something for the privilege of obtaining the lower rate of duty. In other words, a number of the preferences negotiated away at Geneva were those which were expressly established for the purposes of trade treaty negotiations. Therefore, insofar as preferences are concerned, I point out that the preferences remaining in respect of those items negotiated at Geneva - it must be remembered that there are still a large number of items not affected by the negotiations - are mostly in keeping with the original commitments taken by Australia at Ottawa, and that where a new preference is lower than the Ottawa margin the item generally is not one of material interest to the United Kingdom, or in respect of which, after fifteen years of operation, the United Kingdom has not been able to obtain a reasonable share of the trade under the Ottawa margin. In most of these cases the Ottawa margin, whilst not assisting the United Kingdom, was unnecessarily increasing the imported cost of the article.

Owing to the fact that ad valorem duties have been changed as a result of the new basis of value for duty which is now related to Australian currency instead of British currency, as previously, confusion could easily arise by comparing the present actual percentage rates with the previous actual percentage rates. To avoid such confusion, any comparison between o.ne set of rates and the other which may be made by me during the course of the debate will, as a general rule, relate to the duties which would be payable on the new value for duty basis.

Debate (on motion by Senator Cooper) adjourned.

page 587

CUSTOMS TARIFF (NEW ZEALAND PREFERENCE) BILL

(No. 2) 1948.

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator COURTICE:
QueenslandMinister for Trade and Customs · ALP

– I move-

That the bill be now road a second time.

The bill how before the Senate mainly gives effect to consequential variations arising from negotiated alterations to the British preferential tariff and mostfavourednations rates contained in Customs Tariff Bill (No. 3) _ 1948. There were no direct negotiations at Geneva for a review of our existing agreement with New Zealand, but consultation took place whenever tariff items included in the Australia-New Zealand

Tariff Agreement were involved in negotiations with other countries. The amendments contained in the bill prevent the occurrence of any anomalies and have the approval of New Zealand. For the most part, these amendments merely have the effect of maintaining New Zealand’s relative position following variations of the British preferential tariff . or of mostfavourednations rates and in no instance have the New Zealand rates been increased. The bill also covers a few items which are included purely for redrafting purposes and in such cases the rates of duty have not been varied.

Debate (on motion by .Senator. Cooper) adjourned.

page 587

CUSTOMS TARIFF (CANADIAN PREFERENCE) BILL (No. 2) 1948

Bill received from the House of Representatives.

Standing and Sessional Orders suspended.

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

Second Reading

Senator COURTICE:
QueenslandMinister for Trade and Customs · ALP

– I move -

That the bill be now read a second time.

Although there were no direct negotiations at Geneva between Canada and Australia for a comprehensive review of our trade agreement, the two delegations were at all times in close consultation with each other with’ a view to watching their respective preferential interests. The bill now before the Senate covers items which, in the trade agreements between Australia and Canada carry special rates of duty for Canadian goods when entering Australia. Some of these special rates of duty were lower than the British preferential tariff and others were at a point between the British preferential tariff and most-favoured nations rates. Owing to negotiations with other countries at Geneva, anomalies in preference would occur unless the adjustments contained in this bill were effected. In no instance do the amendments increase the rates of duty; in most cases they represent a reduction of duty. All these consequential changes carry

Canada’s approval. This bill ensures that Canada will not be detrimentally affected by the arrangements made between Australia and other countries.

Debate (on motion by Senator Cooper) adjourned.

page 588

ADJOURNMENT

War Gratuity

Motion (by Senator Ashley) proposed -

That the Senate do now adjourn.

Senator AYLETT:
Tasmania

– I wish to bring to the notice of the responsible Ministers a matter dealing with payments of war gratuity. We all know that many Australian families suffered very sad bereavements when they lost their breadwinners during World War II. We have been told that the payment of war gratuity was deferred for the main purpose of preventing a large amount of surplus cash from being brought into circulation immediately after the war. The Government also considered that payment of gratuity in 1951-52 would be of great benefit to ex-members of the forces, or their surviving dependants, at that time. Very strong representations have been made to me through the Fathers Association for the payment of gratuity to widows and mothers of deceased servicemen when they reach the age of 65 years. The association considers that the request is reasonable, and I agree that it is justified in pressing its case. I have been informed of instances in which very grave hardships are being suffered by mothers of deceased servicemen. These women do not want to be brought into the light of publicity for reasons best known to themselves, but the payment of gratuity to them would afford them great relief. Now that more than two years have passed since the end of hostilities, I do not believe that the Government could derive any great advantage from withholding gratuity payments from mothers and widows who have reached the age of 65 years. I ask that the responsible Ministers - probably the Minister for Repatriation and the Treasurer are both involved - give serious consideration to the payment of gratuity to these women.

Question resolved in the affirmative.

page 588

PAPERS

The following papers were presented

Audit Act - Finance - Treasurer’s Statement of Receipts and Expenditure for year 194.0-47, accompanied by the Report of the Auditor-General.

CommonwealthDisposals Commission - Third Annual Report, for year ended 31st August, . 1947.

Defence (Transitional Provisions) Act - National Security (Prices) Regulations - Declarations - Nos. 165-167.

Aliens Act - Regulations - Statutory Rules 1948, No. 8.

Arbitration (Public Service) Act - Determinations by the Arbitrator. &c. - 1947-

No. 106 - Peace Officer Guard Asso- - ciation.

No. 107 - Federated Ironworkers Association of Australia.

Nos. 108-110 - Hospital Employees’ Federation of Australasia.

No.111 - Amalgamated Engineering Union and others.

No. 112 - Federated Ironworkers Association of Australia.

No. 113 - Amalgamated Engineering Union and others.

No. 114 - Commonwealth Medical Officers Association.

No. . 115 - Amalgamated Engineering Union and others.

No. 116 - Amalgamated Engineering Union.

Nos. 117-119 - Association of Architects, Engineers, Surveyors and Draughtsmen of Australia.

Nos. 120 and 121 - Commonwealth Foremen’s Association.

1948-

No. 1 - Federated Ironworkers’ Association of Australia and others.

No. 2 - Commonwealth Public Service Artisans’ Association.

No. 3 - Association of Railway Professional Officers of Australia.

No. 4 - Australian Broadcasting Commission Staff Association.

No. 5 - Repatriation Department Medical Officers’ Association.

No.6 - Commonwealth Public Service Clerical Association.

No. 7 - Commonwealth Public Service Artisans’ Association.

No. 8 - Postal Telecommunication Technicians’ Association (Australia) and others.

No. 9 - Federated Ironworkers’ Association of Australia.

Nos. 10 and 11 - Commonwealth Public Service Artisans’ Association.

No. 12 - Australian Workers’ Union.

No. 13 - Repatriation Department Medical Officers’ Association.

No. 14 - Commonwealth Storemen and Packers’ Union of Australia.

No. 15 - Commonwealth Public Service Clerical Association.

No. 16 - Australian Federated Union of Locomotive Enginemen.

No. 17–Amalgamated Engineering Union.

No. 18-Hospital Employees’ Federation of Australasia.

No. 19 - Federated Ironworkers’ Association of Australia.

Nos. 20 and 21 - Commonwealth Public Service Artisans’ Association.

Australian Broadcasting Act - Fifteenth Annual Report and Balancesheet of the Australian Broadcasting Commission, for year 1940-47.

Australian Imperial Force Canteens Funds Act - Twenty-seventh Annual Report of the Trustees, for year 1946-47.

Australian Soldiers’ Repatriation Act - Regulations - Statutory Rules 1947. No. 169.

Commonwealth Bank Act - Appointments - M. J. Boyce, H. J. Foster, F. L. Harper, B. Koroloff.

Commonwealth Employees’ Compensation Act - Regulation- Statutory Rules 1948

No. 13.

Commonwealth Public Service Act -

Appointments - Department -

Attorney-General - W. M. Phillips, F. Wilkins.

Civil Aviation - F. Barton, L.J Clementson, A. H. Cobby, A. Drew, J. E. French, C. H. Hohne. G. C. T. Morrison, T. F. W. Bobbins, F. G. Shanahan.

Commerce and Agriculture - W. J. Bettenay, A. G. Edmunds. P. T. Mitchell.

Defence - A. E. Buchanan.

Health - D. W. Davies.

Interior- F. J. Anable, J. A. W. Banks, W. Beveridge. J. E. Campbell, J. G. Griffiths, B. C. Hamilton, E. C. Knight, J. D. McConnell, W. A. Macdonald, F. P. Noonan, A. W. Sharp, H. J. Sharpe.

Labour and National Service - J. L. Buckland, W. T. Clark, R. Cousland, E. Eisner, B. W. Foord, E. Freidin, P. M. Goldston, D. E. Graves, R. J. Thomson, E. White.

Parliamentary Library- E. Bishop, J. B. S. Jackson, J. M. Trevaskis, J. Watson.

Postmaster-General - W. A. Austin, J. H. Barnes, M. F. Elliott, M. W. Farmer, E. G. Frahcome, J. L. Hoare, R. N. Lowe.

Post-war Reconstruction - T. T. Colquhoun, J.G H. Hoeben, F. H. Williamson.

Repatriation- R. K. Hopkins, C. Williams.

Supply and Shipping - W. F. Jones, P. O’Neill, L. S. Prior, L. W Williams.

Transport - T. G. Paterson.

Treasury - E. A. Reynolds.

Works and Housing-G. W. Barrett, A.T. Brunton, T. E. Collins, R. J.Corbett, A. H. Dent, J. A. Drake, L. E. Elgar, C. K. Fraser, W. T. Goldsworthy, L. G. Grant. I. 0.Holloway, F. T. Jellett, J. M. Keane, C.C. McCarthy, H. J. McDonald, K. R. McGeachin, A, P March, C. M. Miller, A. C. Mortis, E. R. Neal, L. J. Norris, E. R. Peck, A. J. Perry, W. J. Richardson, H. J Rose, J. P. Rose, T. V. Sheppard, A. Skardoon, A. B. Smith, B. B. Smith. K. W. V. Smith, B. K. Thomson. J. Vine-Hall, E. D. Wilson, D. B. Windebank.

List of Permanent Officers of the Commonwealth Public Serviceon 30th June, 1940.

Twenty-third Reporton the Commonwealth Public Service by the Public Service Board, for year 1946-47.

Regulations - Statutory Rules 1947 -

Nos. 163, 165 (Parliamentary Officers ) .

Customs Act-

Customs Proclamation– No.691.

Regulations - Statutory Rules - 1947, No. 164. 1948, No.6.

Customs Act and Commerce (Trade Descriptions) Act - Regulations - Statutory Rules 1948, Nos. 11, 20, 27, 28, 29, 30, 31.

Dairy Produce Export Control Act - RegulationsStatutory Rules 1948, Nos. 1, 25.

Defence Act - Regulations - Statutory Rules 1947, Nos. 166, 167.

Defence (Transitional Provisions.) Act -

National Security (Apple and Pear Acquisition ) Regulations - Order - Apple and pear acquisition 1947-48.

National Security (Economic Organization) Regulations - Orders-

Exemption.

War service land settlement -

Victoria (6- dated 1st December, 1947, 3rd December, 1947 (2), and 12th January, 1948

Western Australia (3 - dated 6th February, 1948, l0th February, 1948, and 11th February, 1948).

National Security (Enemy Property) Regulations - Order - Persons ceasing to be enemy subjects.

National Security (Industrial Property) Regulations - Orders- Inventions and designs (106).

National Security (Prices) Regulations -Orders- Nos. 3166, 3167, 3178-3182, 3184-3269.

National Security (Rabbit Skins) RegulationsOrder - Returns.

National Security (Rationing) Regulations - Order - -No. 152.

National Security (Shipping Coordination ) Regulations - Order - 1947, No. 57.

National Security (Wheat Acquisition)

Regulations - Order -

Acquisition of wheat.

Regulations - Statutory Rules - 1947, No. 168. 1948, Nos. 2, 3, 4, 7, 10, 15, 21, 22.

Egg Export Charges Act - Regulations - Statutory Rules 1948, No. 17.

Egg Export Control Act - Regulations - Statutory Rules 1948, No. 18.

Immigration Act - Regulations - Statutory

Rules 1947, No. 161

Income Tax Assessment Act - Regulations - Statutory Rules 1947, No. 173.

Judiciary Act - Rule of Court, dated 21st October, 1947.

Lands Acquisition Act - Land acquired for - Council for Scientific and Industrial Research purposes -

Armidale, New South Wales.

Geelong, Victoria.

Indooroopilly, Queensland.

Defence purposes -

Amberley, Queensland.

Ballarat, Victoria.

Bankstown, New South Wales.

Broome, Western Australia.

Dowerin South, Western Australia.

Hamilton, Victoria.

Learmonth, Western Australia.

Perth, Western Australia.

Rushcutters Bay, New South Wales.

Salisbury, South Australia.

Spring.bank, South Australia.

Stuart Junction, Queensland.

Wamberal, New South Wales.

Wodonga, Victoria.

Woolloonrooloo, New South Wales. Department of Civil Aviation purposes -

Bowen, Queensland.

Cairns, Queensland.

Carpentaria Downs, Queensland.

Cooktown, Queensland.

Geraldton, Western Australia.

Kalgoorlie, Western Australia.

Kingscote, South Australia.

Townsville, Queensland.

Winton, Queensland.

Department of the Interior purposes -

Port Hedland, Western Australia.

Department of Social Services purposes - Warrawee, New South Wales.

Department of Works and Housing purposes - Perth, Western Australia.

Postal purposes -

Altona, Victoria.

Bayswater, Victoria.

Beaudesert, Queensland.

Bermagui South, New South Wales.

Bordertown, South Australia.

Bowen, Queensland.

Caloundra, Queensland.

Cessnock, New South Wales.

Clifton, Queensland.

Coonamble, New South Wales.

Corinda, Queensland.

Cowes, Victoria.

Cremorne, New South Wales.

Darlinghurst, New South Wales.

Diamond Creek, Victoria.

Double Bay, New South Wales.

Essendon, Victoria..

Gawler, South Australia.

Gladstone, South Australia.

Gunnedah, New South Wales..

Haymarket (Sydney), New South Wales.

Katanning, Western Australia.

Kew East, Victoria.

Lidcombe, New South Wales.

Lithgow, New South Wales.

Mallala, South Australia.

Manangatang, Victoria.

Melbourne, Victoria.

Melton, Victoria.

Mosman Park, Western Australia.

Newmarket, Victoria (2).

Rozelle, New South Wales.

Singleton, New South Wales..

Somerton, Victoria.

Strathalbyn, South Australia..

Sunshine, Victoria.

Tailem Bend, South Australia.

Temora, New South Wales.

Tully, Queensland.

West Melbourne, Victoria.

Woolloongabba, Queensland.

Yarram, Victoria.

Railway purposes - Hawker, South Australia.

Telephonic purposes - Rockhampton, Queensland.

Meat Export Control Act - Regulations - Statutory Rules 1948, No. 12.

Nationality Act - Return for 1947.

Navigation Act - Regulations - Statutory Rules 1948, No. 20.

Norfolk Island Act - Ordinance - 1948 - No. 1 - Slaughtering.

Northern Territory Acceptance Act and Northern Territory (Administration) Act - Regulations - 1947 -

No. 3 (Darwin Town Area Leases Ordinance) .

No. 4 (Aboriginals Ordinance).

Northern Territory (Administration) Act -

Regulations - Statutory Rules 1948, No. 24.

Papua-New Guinea Provisional Administration Act - Ordinances - 1947 -

No. 13 - Administration and Probate (New Guinea).

No. 14 - Trustee Companies.

No. 15 - Supply (No. 2) 1947-48.

No. 10 - Ordinances Reprint and Revision.

1948-

No.1- Supply (No. 3) . 1947-48.

No. 2 - Liquor.

No. 3 - Port Moresby Water Supply ( Temporary Provisions )

Post and Telegraph Act - Regulations - Statutory Rules 1948, No. 23.

Re-establishment and Employment Act - Regulations - Statutory Rules 1948, Nos. 9, 10.

Science and Industry Research Act - Regulations - Statutory Rules 1948, No. 5.

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

1947-

No. 11 - Housing.

No. 12 - Education.

No 13- Motor Traffic (No.2).

No. 14 - City Area Leases.

No.15 - Trustee Companies. 1948 - No. 1 - Liquor.

Regulations - 1947-

No.4 (Motor Traffic Ordinance).

No. 5 (Motor Traffic Ordinance).

Social Services Contribution Assessment Act - Regulations - Statutory Rules 1947, No. 172:

Stevedoring Industry Act -

Orders -

1947, “A”-“E”.

1948, Nos. 1-6.

Regulations - Statutory Rules 1947, No. 170.

Stevedoring Industry Charge Assessment Act - Regulations - Statutory Rules 1947, No. 171.

Superannuation Act - Regulations - Statutory Rules 1948, No. 14.

Supply and Development Act - Regulations - Statutory Rules 1948, No. 19.

War Service Homes Act - Report of War Service Homes Commission for year 1946-47, together with statements and balance-sheet.

Senate adjourned at 4.50 p.m.

Cite as: Australia, Senate, Debates, 7 April 1948, viewed 22 October 2017, <http://historichansard.net/senate/1948/19480407_senate_18_196/>.