Senate
21 September 1972

27th Parliament · 2nd Session



The ACTING DEPUTY PRESIDENT (Senator Wood) took the chair at 10 a.m., and read prayers.

page 1103

QUESTION

TERRORIST OUTRAGES

Senator MURPHY:
NEW SOUTH WALES

– My question is directed to the Acting Leader of the Government in the Senate. In view of Sir Robert Askin’s offer of a reward of $20,000 for information leading to the arrest and conviction of those responsible for the bombings in Sydney last Saturday, will the Minister bring to the attention of Cabinet the course that was followed in relation to the Qantas Airways Lid bomb hoax last year when, the day after the event, an offer of a reward of $20,000 was made by the New South Wales Government and an offer of a reward of $30,000 was made by the Commonwealth, which rewards, according to the Government’s assertion, Led to the arrest and conviction of the persons responsible? I simply ask the Minister whether he will now bring to the attention of Cabinet what was done previously in order that Cabinet may give consideration to pursuing a similar course with, it is hoped, great success.

Senator DRAKE-BROCKMAN:
WESTERN AUSTRALIA · CP; NCP from May 1975

– BROCKMAN- 1 listened very carefully to Senator Murphy yesterday. 1 think most Australians were very shocked to hear of the bombings. Yesterday I felt, as did the AttorneyGeneral, that it was the responsibility of the New South Wales police to cary out investigations into this matter. My reaction to Senator Murphy’s speech yesterday was that the New South Wales authorities should be given time to complete their investigations. In view of the announcement made by Sir Robert Askin and in view of the experience with the Qantas Airways Ltd case, I will make representations to the Prime Minister on the points raised by Senator Murphy.

page 1103

QUESTION

EDUCATION

Senator LAWRIE:
QUEENSLAND · CP; NCP from May 1975

– Has the attention of the Minister representing the Minister for Education and .Science been drawn to Press reports of a so-called demonstration of pupil power by small groups of high school students in Australian cities? Has this socalled demonstration been aided, abetted and encouraged by some prominent Australians who have advocated the defiance of authority and who have stated that authority has had its day? Is the wilful destruction by fire of property, school ties, belts, etc., the action of responsible youth? Will the Government consider withdrawing all forms of educational aid from these small minority groups because it is a waste of taxpayers’ money, apparently not needed and certainly not appreciated?

Senator WRIGHT:
Minister for Works · TASMANIA · LP

– An alarming state of affairs is portrayed by an article in today’s ‘Australian’ headed ‘Defiant students on march’, together with a photograph showing a heap of ties, belts and gloves being burnt by students said to be as a protest. I noticed too, that participation in these demonstrations has been reported to include Dr M. H. Cass, a Labor member of this Parliament from Victoria, as well as others. It seems to be a strange form of insanity, along the lines of recent publications which are deliberately subversive of respect for authority even at the school stage. The purpose of schooling, I should have thought, was, amongst other things, to teach the lessons of self discipline. It is very inconsistent with the protests against violence that we have heard in the Senate in recent days. This sort of behaviour is calculated to encourage, at the very beginnings of life, the use of violence, fire and destruction for purposes of demonstration. I deplore it. I hope that every influence will be brought to bear to teach the folly of it. With regard to the third part of Senator Lawrie’s question, we ought to remember that appropriations for scholarships and allowances provided by the Commonwealth Government this year amount to $56m. Only 4 years ago the appropriation was half that amount - $28m. That increase has been made to enable young people to get access to education of various suitable forms. I can give the honourable senator only this assurance: The progress of the scholar in educational achievement is the test by which the continuance of that scholarship is determined from year to year. His discipline in the school is a matter for the school authority.

page 1103

QUESTION

YUGOSLAVIA

Senator MULVIHILL:
NEW SOUTH WALES

– I direct my question to the Minister representing the Minister for Foreign Affairs. It is a 2- pronged question. If the fragmentation of the Republic of Yugoslavia were to occur, as favoured by a minority of the Croatian community of Australia, would not the possibility arise that the Red fleet could have permanent access to Rijeka and other Adriatic Sea ports? Secondly, would not such action seriously disturb the present balance of power between the North Atlantic Treaty Organisation and Warsaw Pact nations?

Senator WRIGHT:
LP

– It will be remembered that Senator Mulvihill referred to this question during Senate debates yesterday. I answer him by saying that any break up of Yugoslavia could lead only to the creation of a new crisis point in the world today. It is almost certain that under such circumstances there would be increased tension and thus a reversal of the current trends towards a better climate for good relations in Europe after a post-war period of tension lasting over 25 years. The Union of Soviet Socialist Republics would, doubtless, seek to exploit such a situation for its own ends. It is therefore probable, we think, that any break up of Yugoslavia would not be in the interests of the West. Furthermore, Yugoslavia has to date successfully pursued an attempt to develop a socialist political system with a humanitarian content. This provides an alternative to other patterns. It would be a pity if this experiment were permitted to fail. Reversion to a more authoritarian communist government could result. Leaders of the Croatian extremist organisations have said that they would be prepared to receive aid from any source, including the Soviet Union, for the liberation of Croatia. If their requests were accepted the Soviet Union could exploit the present dissident movement against the interests of the West.

page 1104

QUESTION

EDUCATION

Senator McMANUS:
VICTORIA

– I desire to ask a question of the Minister representing the Minister for Education and Science. My question relates to the fact that at this time of the year we are accustomed to reading reports that our universities will have to impose quotas on the entry of students and, in consequence, receiving demands that extra universities be provided. However, at the same time we have leaders of universities - a notable example of this came from the Australian National University the other day - pointing out that a considerable num ber of students who enter universities, in some faculties more than 25 per cent, either do not complete the first year or fail and leave at the end of the first year. My question is: Will the Minister give consideration to calling upon the universities to institute some reasonable system of ensuring that those who enter universities arc equipped to get the full benefit from the course rather than the present situation where we have a combination of large numbers dropping out and, simultaneously, the demand for more places?

Senator WRIGHT:
LP

– In answer to the rather wide ranging question of the honourable senator, let me say that it was the present Commonwealth Government which in the mid-1950s, seeing the deficiencies under which universities were then labouring, made a special point of assisting education in the university field. We have indicated a growing interest in assisting universities. The appropriation to the States by the Commonwealth for the assistance of universities has grown to $94m this year. It was only one half of that amount 6 years ago. If the honourable senator were to take the trouble of looking at the annual reports of the Australian Universities Commission and the Australian Commission on Advanced Education he would see that reference is made in them to this question of the entrance to universities of only those people who are qualified and have a reasonable prospect of succeeding in completing their courses. He will recognise also that the establishment of colleges of advanced education is a very potent step designed to enable students more qualified for colleges than universities to undertake tertiary education. I will not delay question time to refer to the other features that are discussed in these reports. 1 think that is a sufficient indication that the 2 commissions have been giving real consideration to this matter. Let us be reminded that our authority in the Commonwealth field does not extend to the implementation of the matriculation standard of entry to universities. That standard is the sole prerogative of the governing councils of the universities. That is not withstanding, as I have indicated, that these commissions take into consideration when advising the government how much money should be provided for the assistance of universities.

page 1105

QUESTION

STEEL CONTRACT

Senator WEBSTER:
VICTORIA

– I direct a question to the Minister representing the Minister for Trade and Industry. I refer to matters which I raised in the Senate earlier in this year and again in the earlier part of this week, and to the reported placing by the Australian Gaslight Company of an order with Japanese suppliers for 220,000 tons of gas steel pipe. Can it be accepted that the Minister feels confident that the AGL has given every opportunity to Australian manufacturers to submit a quotation for the supply of this substantial order? Should it be established that at no stage has the principal given a proper specification upon which a quotation could be submitted by the Australian suppliers of steel or the manufacturers of pipe, would the Minister consider it reasonable for the Federal Gov.ernment to intervene in this matter? If it could be established that at no stage the principal invited a quotation from Australian manufacturers for the supply of 34- inch diameter steel pipe, would it be reasonable to expect that the Federal Government would intervene in this matter.

Senator COTTON:
Minister for Civil Aviation · NEW SOUTH WALES · LP

– My knowledge of this matter does not allow me to answer with precision many of the queries raised in the honourable senator’s question. It appears to be clear that Australian manufacturers had an opportunity to tender. From what I can find out, it is said that they believed their prices would have beer competitive but they do not know the level of the other price. This is what is said. Also, it is said that the quality of steel called for in the pipes was such that they believed they could manufacture it. It would appear that there is still some slight doubt in the minds of the consultants who were advising the purchasing company whether this is the case. The only thing that seems to me to be really precise in this matter is the comment made this morning toy a company public relations spokesman that the Australian pipemaking capacity of this diameter pipe is only about 50 per cent of the potential demand rate. I admit that these things are imprecise. I think that the honourable senator will agree that in a case of this magnitude when he asks whether the Government will intervene, it is a proper matter for the responsible Minister in the other place and the Government to consider. He can be assured by me of my interest and concern.

page 1105

QUESTION

TERRORIST OUTRAGES

Senator DEVITT:
TASMANIA

– I direct a question to the Attorney-General. Who is in charge of investigations into the Sydney bomb outrages - the Federal or State police? How is the obvious incompatability between State and Federal approaches as evidenced by the reward offered to be resolved? What efforts can be made to ensure greater liaison between the 2 bodies so that the job can be got on with as speedily and as successfully as we would have a right to expect? Would it not be a distinct advantage to have a closer liaison at Government to Government or Minister to Minister level so that problems of this nature can be reduced to an absolute minimum?

Senator GREENWOOD:
Attorney-General · VICTORIA · LP

– -I am not aware of any defect in liaison between the State authorities and the Commonwealth authorities either at a Ministerial level or at a police level. There is every opportunity, which is availed of as needed, for the people of the States and the Commonwealth to work together. The investigations in New South Wales are being carried out by the New South Wales State police. That has been stated a number of times. It is appropriate that where there is a crime or an outrage which appears to be an offence against State law the State police should conduct the investigations. I see no difficulties or problems in that being the case.

page 1105

QUESTION

YUGOSLAVIA

Senator HANNAN:
VICTORIA

– I direct a question to the Attorney-General in his capacity as Minister in charge of security. Can the Minister advise the Senate whether the late Nikola Rasfudic, a Croatian by birth, was a naturalised Australian citizen with an Australian passport? ls it a fact that he visited his native Croatia - now part of Yugoslavia - in July of this year? Is it a fact that he had no political leanings but that on arrival in Zagreb be was arrested by the secret police, tortured for 19 days and murdered? ls it a fact that 5 other naturalised Australians are at present missing in Yugoslavia, pressure having been exerted upon them to renounce their Australian citizenship? Is it a fact that the Australian Ambassador in Belgrade has been denied all information on these people? Is it a fact that in July the Australian Government announced that KOS - the overseas branch of the UDBA secret police - was operating in Australia? Are these secret police of the same branch as those who arrested the late Nikola Ras.fudic? Will the Government have the courage to tell the Government of Yugoslavia that it demands that Australian passports be honoured and demands information on these missing Australian citizens?

Senator GREENWOOD:
LP

– I have received a great deal of information which I have passed on to the Minister for Foreign Affairs. I think it is indisputable that Mr Rasfudic is dead, and I have received statutory declarations and information from a number of people in Australia passing on information which they have received from Yugoslavia as to the circumstances in which he came by his death. I know from information in my possession that assertions of the character which Senator Hannan has made are being made by people who are concerned about the matter. These matters have to be investigated. Part of them have been investigated already in Australia; they are continuing to be investigated in Australia, and I understand that the Minister for Foreign Affairs is arranging for such inquiries to be made in Yugoslavia as our Ambassador is able to undertake. I am unable to say whether there has been difficulty in contacting our Ambassador in Yugoslavia, though assertions again have been made to that effect. I can assure the honourable senator that the Government takes this matter very seriously, but it must inquire into the allegations that are made before it can take any steps which the result of those investigations may necessitate in the national interest and in the protection of the rights of Australian citizens.

page 1106

QUESTION

HIJACKING

Senator MULVIHILL:

– Mindful of the solicitude that has been expressed by Senator Hannan about passports, I wonder whether the Attorney-General would be kind enough, in addition to the investigations he is pursuing, to contact the Swedish

Embassy to ascertain the truth or otherwise of an allegation that a Croat from Sydney has been linked with the recent hijacking episode involving a Swedish airliner, which was reported in yesterday’s Sydney ‘Sun’?

Senator GREENWOOD:
LP

– I will look into the matter which has been raised by the honourable senator and endeavour to have more information, or such information as I can get, supplied to him as soon as possible.

page 1106

QUESTION

EDUCATION

Senator JESSOP:
SOUTH AUSTRALIA

– I direct to the Minister representing the Minister for Labour and National Service a question which is supplementary to the question asked by Senator Lawrie relating to the strikes held by high school students yesterday in defiance of authority within the schools. Is the Minister aware that a high school student organiser of a strike at a Victorian high school stated on the ‘PM’ programme last Friday that the student action group had the support of the Australian Communist Party and the Trotskyites? ls he also aware that a sympathetic high school strike conducted in South Australia had the support of the Young Labor Association and the Socialist Left Youth Alliance as well as of the Communist Party?

Senator WRIGHT:
LP

– It would be surprising if the complicity between the Communist Party and the student action group to which reference has been made did not exist. I am unable to confirm what the honourable senator says with regard to the South Australian organisation but I have no doubt that he, from his South Australian experience, puts in the form of a question what indeed is a fact.

page 1106

QUESTION

USTASHA

Senator CAVANAGH:
SOUTH AUSTRALIA

– My question is directed to the Minister representing the Prime Minister. In view of the authoritative statement made last evening on ‘This Day Tonight’ that there does exist in Australia a Ustasha movement with large numbers of members, I ask the Minister: Has the security service a full knowledge of the policy and activities of this movement? Has the security service reported to the Prime Minister on this organisation in Australia?

If so, would the report be. such as to cause concern to the Prime Minister or the Government?

Senator DRAKE-BROCKMAN:
Minister for Air · WESTERN AUSTRALIA · CP

– 1 think the first portion of the honourable senator’s question should be directed to the Attorney-General. Then the honourable senator goes on and asks for the opinion of the Prime Minister. If the honourable member will put the question on notice, 1 will obtain some information.

page 1107

QUESTION

ROAD SAFETY

Senator WEBSTER:

- Mr Acting Deputy President, I wish to address a question to Senator Cotton and 1 ask for your permission to advert to a question I asked earlier. I ask the Minister whether he will study my question and at an early date, bring a written reply to the Senate to those questions that have been raised. Next, I ask the Minister representing the Minister for Shipping and Transport whether he is aware of a recent statement by the deputy chairman of Victoria’s road safety and traffic authority, Dr Grayton-Brown, that more than half of all road deaths and serious injuries were caused by drivers with a blood alcohol content of 0.10 per cent or higher. Can the Minister inform me whether there are any funds for research under the control of the Minister for Shipping and Transport directed towards the solution of this particular and most important problem?

Senator COTTON:
LP

– The short answer to the double-barrelled question is yes; no. To elaborate I would say that most certainly the honourable senator may take it that in any circumstances a question like his, which was an important question and which called for detail, would receive a written answer. The honourable senator may be sure of that. As far as the blood alcohol question is concerned, it is foreign to me to be personally involved in such a problem. Nonetheless, it is a serious problem. I believe that the Road Transport Advisory Council studies these matters and I imagine it has some funds though I do not think they are great. The proposition that this is one of the principal causes of accidents I think is perfectly correct. I think we should all be concerned about it, and I will take the honourable senator’s suggestion to the responsible Minister.

page 1107

QUESTION

ELECTION DATE

Senator McLAREN:
SOUTH AUSTRALIA

– My question is directed to the Minister representing the Prime Minister. In view of the fact that teaching staff, school committees and parents associations throughout Australia are desirous of making firm arrangements for the end of year school functions and that these arrangements necessitate the booking in advance of halls and in many cases school buildings, which will be required for use as polling booths, will the Minister request the Prime Minister to make an early announcement of the election date so that the people and organisations I have mentioned can complete their arrangements?

Senator DRAKE-BROCKMAN:
CP

– The Prime Minister has the right to announce when the election will be held when he thinks the time is right to make that announcement.

page 1107

QUESTION

WOOL

Senator YOUNG:
SOUTH AUSTRALIA

– 1 direct a question to the Minister representing the Minister for Primary Industry. Has the Minister seen reports that current wool prices are the highest since the 1955-56 selling season? Having bought in thousands of bales of surplus wool during the extremely depressed prices of last year, has the Australian Wool Commission now disposed of most of that wool at a profit stated to be $10.5m? If so, does this not show the wisdom of those on the Commission and its benefits to the Australian wool industry, completely contradicting members of the Australian Labor Party and other prophets of doom who were so critical of the operations of the Australian Wool Commission last year?

Senator DRAKE-BROCKMAN:
CP

– It is true to say that a remarkable change for the better has occurred in the wool industry in the last few months. Honourable senators will recall that, because of the economic situation prevailing at the opening wool sales last year, growers received what I would say were ruinous prices for their wool. The Australian Wool Commission built up a stock pile of wool which reached a peak of some 930,000 bales. This was followed by a situation of oversupply of wool. Indications throughout the world this year show that the wool clip will probably be down by 7 per cent. I understand that in other producing countries smaller clips will be achieved-

Senator Wilkinson:

– Down by 7 per cent or down to 7 per cent?

Senator DRAKE-BROCKMAN:

– Down by 7 per cent.

Senator Byrne:

– ls that demand or production?

Senator DRAKE-BROCKMAN:

– That is production. The improved world economic situation has brought about a change in the demand for wool fibres, so much so that the stocks of the Commission have been reduced to just under 100,000 bales. Prices are climbing steadily at each wool sale. I hope that prices will not increase too quickly to the extent that wool will be priced out of competition with other fibres. The rural debt stands at approximately $2, 100m. We must recognise that approximately $l,200m of that sum is owed by growers. I believe that woolgrowers, in the light of those facts, should receive the benefit of the increased prices. The situation would not be so rosy but for the wonderful job done by the Australian Wool Commission.

page 1108

QUESTION

STEEL PIPES

Senator MURPHY:

– I direct a question to the Minister representing the Minister for Trade and Industry. I refer to the statement made by Mr Laurence Short, National Secretary of the Australian Federated Ironworkers Association, calling upon the Federal Government to use its powers to require the Australian Gaslight Company to use in the Moomba-Sydney pipeline as much Australian steel and pipes as can be produced in the time specified. In response to that call, will the Government urgently inquire into the contention of the Broken Hill Pty Co. Ltd that it can produce steel of the type required and the opposing contention by the Australian Gaslight Co. that BHP cannot? Will the Government bear in mind any incentive that the Australian Gaslight Co. may have to contend that the steel of the type required cannot be produced in Australia, in order that if it does import it can import duty free?

Senator COTTON:
LP

– I would have a fairly substantial regard for the observations made by Mr Laurence Short and, I am sure, so would the Government. The honourable senator may be equally sure that the Government is looking at this matter and taking all the factors concerned into account.

page 1108

QUESTION

RIVER MURRAY

Senator DAVIDSON:
SOUTH AUSTRALIA

– 1 ask the Minister representing the Minister for National Development whether he has received any reports on the statement made this morning on the Australian Broadcasting Commission programme ‘A.M.’ by the South Australian Leader of the Opposition, Dr Eastick in which he referred to the reported silting of the River Murray affecting the flow of water into South Australia? Will the Minister cause inquiries to be made into these reports and let me have the resultant information? If the reports of silting are serious will the Minister refer to the recommendations of the Senate Select Committee on Water Pollution with particular reference to the use of the Pels scheme?

Senator COTTON:
LP

– As one whose forebears came from South Australia and who delights in the privilege of being one of the free and handpicked settlers of Colonel Angas I share the concern of the honourable senator. This morning I listened to the comments made by Dr Eastick. I thought that when I arrived here I should try to have some inquiries made and I have started those inquiries.

Senator Cavanagh:

– What has happened to Steele Hall?

Senator COTTON:

– I thought that J was responding to Senator Davidson who as Chairman of the Senate Committee, seems to me to have taken a particular interest in the problems of water pollution and of South Australia and the River Murray in particular. It is to be noted that the River Murray is very important to South Australia. I think that any honourable senator from that State or anybody with any knowledge of South Australia would acknowledge that to be the case. I think that Senator Davidson’s concern is very proper. He may be quite sure that we shall do what we can to find out more about this problem for him.

page 1109

QUESTION

TERRORIST OUTRAGES

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

My question is directed to the AttorneyGeneral. I preface it by drawing his attention to part of an answer which he gave yesterday to a question asked by my colleague Senator O’Byrne. The AttorneyGeneral stated:

For the editorial in the ‘Age’ to say this morning that 1 am soft on such organisations and to make a host of other allegations, which are totally unfounded, reflects the inadequacy, the prejudice and the incompetence as editorial writers of a leading Australian newspaper nf those who write in the ‘Age’.

Will the Minister agree that ali newspaper editorials of the Sydney and Melbourne dailies have been very critical of the failure of the Federal Government and in particular of the Attorney-General to do anything publicly of a substantial nature to apprehend those who were responsible for the bomb outrages in Sydney last weekend? Does the Minister therefore say. as he has said about the Melbourne ‘Age’, that all these other editorial writers also are inadequate, prejudiced and incompetent? If not, can the Attorney-General tell us which newspaper editorial or editorials he would like the public to follow on this issue?

Senator GREENWOOD:
LP

– I certainly stand by what I said about the Melbourne Age’ editorial yesterday because I think it was a particularly vitriolic piece of work in the light of the facts. I am not sure, as I have not read all the editorials of the leading Australian newspapers, whether what the honourable senator has said about them is correct. That they have been critical , generally speaking, is true. For my part T welcome criticism if it is based upon facts and if it is constructive in its approach. I think that generally speaking that has been the tone of most of the editorials which I have read. I do not know why the honourable senator asked his question unless it was to suggest in some way that there is a wide, sweeping rejection of criticism or the right to make critical statements. I feel that newspapers have a tremendously important role to exercise a criticism and a freedom of speech which makes the democratic system work. Equally, members of Parliament have the right to criticise newspapers when newspapers, as the Melbourne ‘Age’ did yesterday, and as 1 have known it to do over many occasions in the past, put forward a point of view which does not take account of facts which are on the record and seeks to build up a case either in ignorance of the facts or in total rejection of them.

page 1109

QUESTION

EDUCATION

Senator HANNAN:

– I direct a question to the Minister for Works in his capacity as Minister representing the Minister for Education and Science. In view of the wildly erroneous statements made by Labor leaders on the question of education, can he tell the Senate to what extent the percentage of youth population having access to universities has grown in the last decade under this Government?

Senator WRIGHT:
LP

– We in the Senate would be well aware that year by year over the last decade the percentage of the youth population attending school has increased remarkably; that is to say, the number of students at school in their later years from the age of 15 to 18 has not only increased in absolute terms but also has increased in terms of a proportion of the youth population. Ten years ago the figure was 26 per cent and last year it was 43 per cent. In addition to that it should be noted that the proportion of the students remaining to matriculation level, which is the level qualifying a student for entrance to a university - I give the figures in respect of government schools only - increased from 13 per cent 10 years ago to 26 per cent last year. That shows the increasing load on universities to provide for the youth of Australia who now qualify for entrance to universities.

page 1109

QUESTION

AIRLINE POLICY

Senator WRIEDT:
TASMANIA

– My question is addressed to the Minister for Civil Aviation. Is it true that the recent major statement on the extension of the 2-airline policy has come under great pressure from certain interests and that the Government is reconsidering its whole position as given in the statement 2 weeks ago? When can we expect the necessary legislation to be introduced?

Senator COTTON:
LP

– The answer to the first part of the question is no. The answer to the second part is that we should not be very far away from the point that the honourable senator is seeking where legislation can be introduced. Negotiations with the 2 operators are in process and have almost reached a conclusion.

page 1110

QUESTION

TRANSPORT

Senator WEBSTER:

– Has the attention of the Minister representing the Minister for Trade and Industry been drawn to a headline in the leading Australian newspaper this day wherein it is reported Hawke casts shadow over industry’ and proceeds to outline the concern held in the advertising industry should Labor ever gain office? Does the Minister find disagreement with Mr Hawke’s reported remarks which, in summary, indicate a wish to control industry and professional bodies in Australia? Does the Minister feel that the statement by the Vice-President of the Federated Clerks Union of Australia was quite appropriate when he said, in commenting on Mr Hawke’s desire to enter the transport field: ‘We get a letter from the ACTU Executive saying: “Cop this, fellows, it is good for you” ‘?

Senator COTTON:
LP

– This question adverts to a great number of newspaper articles, none of which I have seen. I would just make the general observation that I am one who believes that Australia should be run by the Parliament and the people of Australia, not by outside groups. When people express great concern that Mr Hawke might run Australia under a Labor government I do not worry because there is not going to be a Labor government.

page 1110

QUESTION

EMPLOYMENT

Senator O’BYRNE:
TASMANIA

– My question is directed to the Minister representing the Minister for Labour and National Service. What measures has the Government in mind to meet the critical situation that will arise in the near future when the present number of unemployed, 120,000, will be considerably inflated by the number of school leavers coming onto the labour market? Does this lack of planning by the Government relating to the future employment of the youth of Australia exacerbate the growing disenchantment of youth in the Government and its institutions?

Senator WRIGHT:
LP

– When Senator O’Byrne talks of disenchantment I think he is chanting the old forlorn song. When he attributes to the Government a lack of planning with regard to school leavers he is resorting to one of his early morning fantasies to which we have become accustomed. The school leaver population is taken into consideration each month and each week by the Department of Labour and National Service. Having regard to the increase in the available number of employees in the workforce at the end of the year, confidence is held that the labour market will be able to absorb that increment much better this year than it did last year. As I told the Senate yesterday, business experience in Sydney is that there is great difficulty in finding people to fill vacancies in trades where vacancies exist. The monthly or weekly - I forget which - notification of vacancies increased in August compared with August 1971 by over 1,000. So the Jeremiahs, for whom Senator O’Byrne is the spokesman, will be disappointed once more that they did not implant in the community a spirit of gloom that would depress employment and prejudice school leavers.

page 1110

QUESTION

ANTI-SMOKING TELEVISION CAMPAIGN

Senator MILLINER:
QUEENSLAND

– I direct a question to the Minister representing the Acting Minister for Health. I remind the Minister of a question asked by Senator Devitt on Tuesday about what he called ‘those ridiculous advertisements on smoking’. Is the Minister aware of the comments made yesterday by Mr R. R. Walker in his authoritative column in the ‘Age’ on advertising in which he strongly criticised the quality and effectiveness of the anti-smoking advertisements? Will the Minister urgently review the anti-smoking advertisements so that public money will not be squandered on an inferior and ineffective advertising campaign?

Senator GREENWOOD:
LP

– I reply to Senator Milliner as I replied to Senator Devitt on Tuesday; this campaign has just started. There will always be opinions on whether the type of advertisement which is being displayed is the best. Opinions will differ so long as people are interested in the subject and are interested to get the most constructive effort possible. We must allow a period of time in which these advertisements are displayed so that an assessment can be made. After a period of operation and after an examination of whether they are the most effective that can be used or whether they could be better, a decision can be made. I do not think it is helpful to say, after 2 or 3 days, that they must be scrapped and something else substituted.

page 1111

QUESTION

WOOL

Senator PRIMMER:
VICTORIA

– My question is directed to the Minister representing the Minister for Primary Industry. Is it a fact that the present escalating prices being received for wool are conditioned hy a shortage of wool in world pipelines, a swing away from synthetics to some extent and back to wool, manipulators and futures marketeers on the world wool buying scene and the impending Federal election? Is it a fact that a statutory marketing authority for wool would tend to iron out the severe peaks and troughs in wool prices which have been part of the wool industry’s tradition?

Senator DRAKE-BROCKMAN:
CP

– 1 cannot remember the order of what the honourable senator said. 1 spoke a little while ago of a fall of about 7 per cent in the production of wool in Australia. There also has been a fall in some other producing countries. As to the amount of wool in the pipeline, I believe that the Australian Wool Commission has taken up the slack to a certain extent, and, because of that situation, speculation has now gone out of the wool industry and the profits of the speculators are drifting back and perhaps tending to produce higher prices in the industry. I do not accept the honourable senator’s remarks about the election. This is said every time this subject is raised. At the time of commencement of the operations of the Commission back in 1970, prices increased during October and November but decreased after the election. Everyone said this happened because the Government was holding an election. That is utter nonsense. Supply and demand on the world market determines the price of wool and I cannot see that an election would have any effect on wool prices. Possibly the only effect would be in the stock exchanges. If I have not provided other information that the honourable senator sought I shall pick it up later.

page 1111

QUESTION

WRECKS

Senator MULVIHILL:

– Can the Minister representing the Minister for Shipping and Transport explain why the Department of Shipping and Transport has declined to aid the New South Wales Government in removing the 3 derelict ferries from the South West Rocks region on the New South Wales north coast?

Senator COTTON:
LP

– No. 1 cannot, but I shall ask the responsible Minister whether he has received a request from the New South Wales Government and whether he thinks he can help. I imagine thai this largely is a matter for the Government of that State.

page 1111

QUESTION

AIRPORT NOISE

Senator KEEFFE:
QUEENSLAND

– The Minister for Civil Aviation will recall that many months ago I asked him about the establishment of a noise abatement committee, at Townsville. On 12th September I again asked him whether the committee had been established and he requested that the question be put on notice. 1 now ask the Minister whether in the period since 12th September he has been able to get the information for me.

Senator COTTON:
LP

– I should have seen the honourable senator and told him that at the present time there are discussions between my Department and the Department of Air about the general operating pattern of the airport in the future. That is what is delaying the setting up of the operation to which the honourable senator refered. I am watching the matter closely and 1 hope to have this organised as quickly as possible.

page 1111

QUESTION

DEFENCE FORCES RETIREMENT BENEFITS SCHEME

Senator DEVITT:

– My question, addressed to the Minister representing the Minister for Defence, relates to the proposed new defence forces retirement benefits scheme. Is the Minister aware that the Minister for Defence announced yesterday that a new DFRB scheme would commence on 1st October 1972? Is he aware that no details are yet available about the nature and extent of the provisions of the proposed new scheme? ls the announcement of details held up because of disagreement between the Department of the Treasury and the Department of Defence on the basis of the range and cost of the recommendations of the Jess Committee which are being resisted by Treasury?

Senator WRIGHT:
LP

– I refer the honourable senator to the statement on this matter by the Minister. The honourable senator’s speculation as to the reason for delaying publication of the details is mere evidence of irresponsibility. In a scheme like this the careful formulation of the detailed units is of the highest importance. That formulation takes time and officers are working on it. When satisfied that a responsible and careful formulation is available, details will be announced.

page 1112

QUESTION

HANSARD

Senator MULVIHILL:

- Mr Acting Deputy President, I direct a question to you. By way of preface I point out that some comprehensive answers to questions have been given this morning but honourable senators may not see them reproduced in Hansard until next Tuesday. I was wondering whether, in conjunction with the President of the Senate, you could devise a system whereby copies of the Hansard report of the proceedings on the last day of sitting in each week could be forwarded by priority postage to the parliamentary offices in the the capital cities and be available for perusal by not later than 11 a.m. on the next Monday morning so that honourable senators can deal with those of their constituents who are involved in the answers given to such questions.

The ACTING DEPUTY PRESIDENT - The honourable senator’s request will be conveyed to the President of the Senate.

page 1112

QUESTION

TERRORIST OUTRAGES

Senator O’BYRNE:

– My question is directed to the AttorneyGeneral. Is the AttorneyGeneral able to state how many Commonwealth police are involved directly in investigations intolast Saturday’s terrorist bombing attacks in Sydney? Have the full facilities of the Commonwealth police been offered to the New South Wales police? Will he inform the Senate whether the apprehension of the terrorists in New South Wales is receiving the top priority of bis Commonwealth police?

Senator GREENWOOD:
LP

– Of course all the facilities of the Commonwealth police are available to the State police in regard to the investigations they are carrying out. The State police know that. 1 should have thought that it would be inconceivable that Senator O’Byrne would have thought the opposite. I cannot answer at the present time the other aspects of his question as to the precise number of people who are assisting the State police in their investigations and the way in which they are doing it. Indeed, it may not be wholly desirable that I should attempt to do so. Yesterday I asked Senator Murphy to put a similar question on the notice paper. I would suggest that Senator O’Byrne should rephrase his question and put it on the notice paper.

page 1112

QUESTION

AIRPORT NOISE

Senator KEEFFE:

– My question, which is directed to the Minister for Civil Aviation, is supplementary to the one I asked of him a few moments ago. I ask: Can it be taken from the Minister’s remarks earlier that Townsville will now get a noise abatement committee?

Senator COTTON:
LP

-I though that Senator Keeffe would understand that Townsville aerodrome is fundamentally an aerodrome

Senator Keeffe:

– I did not understand what the Minister said.

Senator COTTON:

-I know that Senator Keeffe does not understand much, but I am trying to help him. Townsville aerodrome is fundamentally an aerodrome which is owned by the Department of Air and which the Department of Civil Aviation operates on a sort of tenancy basis. So, with regard to the development of the aerodrome, we are very much in consultation with the Department. When we have concluded those consultations we will produce the result which we said we would produce.

page 1112

AUSTRALIAN WOOL BOARD

Senator DRAKE-BROCKMAN:
WESTERN AUSTRALIA · CP; NCP from May 1975

-BROC K M AN (Western Australia - Minister for Air) - For the information of honourable senators, I present the interim annual report of the acti- vities of the Australian Wool Board for the year ended 30th June 1972. When the final report is available it will be presented in accordance with statutory requirements.

page 1113

STATES GRANTS (DWELLINGS FOR AGED PENSIONERS) ACT

Senator WRIGHT:
Minister for Works · Tasmania · LP

– Pursuant to section 11 of the States Grants (Dwellings for Aged Pensioners) Act 1969, I present the annual statement on the operation of the Act for the year ended 30th June 1972.

page 1113

HOMES SAVINGS GRANTS SCHEME

Senator WRIGHT:
Minister for Works · Tasmania · LP

– For the information of honourable senators I present an interim statement on the operations of the homes savings grants scheme for the year ended 30th June 1972. When the final report is available it will be presented in accordance with statutory requirements.

page 1113

DEPARTMENT OF NATIONAL DEVELOPMENT

Senator COTTON:
New South WalesMinister for Civil Aviation · LP

– For the information of honourable senators I present the annual report of the Department of National Development for the year ended 30th June 1972.

page 1113

TARIFF BOARD

Report on Items

Senator COTTON:
New South WalesMinister for Civil Aviation · LP

– I present the following reports by the Tariff Board:

Insulators; porcelain or gas insulators (Dumping and Subsides Act);

Fittings and mountings, hat-racks, etc. of base metal; and Ceramic tableware, etc.

page 1113

IMMIGRATION (EDUCATION) ACT

Senator GREENWOOD:
AttorneyGeneral · Victoria · LP

– Pursuant to section 12 of the Immigration (Education) Act 1971, I present the, annual report on migration education for the year ended 30th June 1972.

page 1113

QUESTION

REPORTS OF PUBLIC ACCOUNTS COMMITTEE

Senator GUILFOYLE:
Victoria

– On behalf of the Public Accounts Committee, I present the one hundred and thity-eighth and one hundred and thirty-ninth reports. Mr Acting Deputy President, I have a statement and I seek leave to have it incorporated in Hansard.

The ACTING DEPUTY PRESIDENT (Senator Wood) - Is leave granted? There being no objection, leave is granted. (The document read as follows) -

The one hundred and thirty-eighth report relates to Treasury minutes arising from the on; hundred and fourth report concerning the Commonwealth Serum Laboratories Commission and the one hundred and eighteenth report which relates to expenditure from the consolidated revenue fund for the financial year 1968-69. The one hundred and thirty-ninth report arises from our inquiry into the development of internal audit within the Commonwealth administration and certain observations that had been made by the AuditorGeneral connected with the Superannuation Board, the Postmaster-General’s Department and the Department of Supply.

As the report shows internal audit is now widely recognised as an important, independent, post-operative appraisal function, performed within a department as a service to management. lt covers the revenue, expenditure, stores, personnel and related operations, and also any financial, accounting, and supply activities arising from the particular functions of a department. The importance of the relationship between (he internal audit functions and the functions of the Aud torGeneral was made clear by the Auditor-General in his report for 1969-70, when he stated that the extent to which statutory discretion is exercised by his office to dispense with all or any part of a detailed audit is influenced in each case by the effectiveness of the system of departmental internal control, of which internal audit is an integral part.

Information supplied to the Committee by the Public Service Board shows that in 1966 a joint Public Service Board - departmental committee was established to review the functions and duties of third division positions in the Commonwealth Public Service engaged in internal audit work in departments. Arising from the work of that Committee, the Public Service Board announced the introduction of a new internal audit structure for the Commonwealth Public Service in mid-1968. The evidence taken in relation to the Superannuation Board shows that a position of internal auditor was first created in 1965 to service the needs of the newly integrated Superannuation Board - Defence Forces Retirement Benefits Board organisation that had been created in 1963. It appears that in recent years there has been a considerable growth in the work and responsibilities of these Boards. As a consequence of this, and related developments, the position had been reached by April 1971 when the Superannuation Board could no longer support its annual accounts without prior internal audit. In this regard the Committee notes with concern the remarks made by the Auditor-General in his report for 1971-72 that, late in August Z971, his office bad found it necessary to return to the

Superannuation Board, the amended financial statements for J 968-69, as errors had been discovered in several arras of the reserve units of pension account, indicating that a complete reexamination of the subsidiary records was necessary.

Senator GUILFOYLE:

– The Committee believes that these circumstances reflect an urgent need for improvements in the quality of internal audit within the SuperannuationDefence Forces Retirement Benefits Board organisation. However, the Committee has noted with satisfaction the action taken recently by the Department of the Treasury to centralise its internal audit activities and, within this arrangement, to allocate internal audit teams to the Superannuation and Defence Forces Retirement Benefits Boards. The most recent information available shows that all of the major management services areas of these boards have been reviewed by the internal audit section and further reviews are planned on a cyclical basis. The Committee also notes with satisfaction that certain problems which, in the past, have impeded the effective internal audit of the accounts and financial statements of the Boards have been resolved and, as a result, the internal audit programme will now be implemented fully.

In the case or the Postmaster-General’s Department, it appears that the preparation of a new internal audit manual incorporating modern auditing techniques is a prerequisite to the raising of standards of internal audit to include appraisals of certain controls and review of policy, procedures and practices. It also appears, however, that effective progress in the development of the manual has been impeded until staff problems confronting the department have been resolved. The Committee notes with satisfaction that recent reviews conducted by the Auditor-General’s Office have shown that a modified internal audit programme introduced by the Department was generally current as at 30th June 1972 and that steady progress is being made in the preparation of the new internal audit manual. The Committee trusts that this task will be substantially completed within the next 2 years as envisaged by the Audi- toT-General in his report for 1971-72.

The evidence taken from the Department of Supply shows that in 1962 the Department established what was believed to be the first internal audit organisation based on modern concepts introduced by a Commonwealth department. The evidence shows, however, that although the Department obtained a new staff re-organisation for internal audit following the recommendations made by the interdepartmental review committee, difficulties were experienced in filling the new positions. These difficulties appear to underlie the problems experienced by the Department in overtaking arrears of internal audit work in its regional offices and in the development of plans for costing audits and other matters. During the course of this inquiry the Committee has noted a strong awareness on the part of departmental managements regarding the importance of the role of internal audit and the endeavours that have been made to bring their internal audit arrangements into full operational efficiency, notwithstanding persistent staffing difficulties. In this regard it is pleasing to note from the report of the Auditor-General for 1971-72 that improvement occurred in some departments during that year. At the same time, however, the Committee is disturbed to note from the Auditor-General’s report that some instances have been revealed where internal audit is in arrears due partly to the employment of internal audit staff on other duties. While we appreciate that this action is sometimes unavoidable and has often’ provided an opportunity for the officers concerned to widen their experience, there are, nevertheless, grave implications if the work of the internal audit section suffers as a consequence. Frequently, the result is to leave the internal audit section under-manned and the internal audit programme unfulfilled.

In all the circumstances of the evidence and other information examined in this inquiry, and the most recent observations made by the Auditor-General, the Committee will maintain a close surveillance on the adequacy of internal audit within departmental administrations and will conduct further inquiries into this matter as the need arises.

I commend the report to honourable senators and move:

That the reports be printed.

Debate (on motion by Senator O’Byrne) adjourned.

page 1115

QUESTION

PLACING OF BUSINESS

The ACTING DEPUTY PRESIDENT - Is it desired to postpone or rearrange the business?

Senator DRAKE-BROCKMAN:
CP

– I move:

That following the presentation of ministerial statements the sittings of the Senate be suspended until the ringing of the bells at approximately 9.30 p.m. to enable Senate Estimates Committees A and C to meet.

Senate Estimates Committee A will meet in committee room L17 and Senate Estimates Committee C will meet in the Senate chamber. 1 am proposing that the Senate will resume at 9.30 p.m. for the purpose of introducing between 9.30 p.m. and 10.30 p.m. some Bills that could stand on the notice paper so that Opposition honourable senators could have a look at them over the week-end. I might not use all that time but I have provided for it in case it is needed.

Question resolved in the affirmative.

page 1115

AUSTRALIAN FOREIGN AID

Ministerial Statement

Senator WRIGHT:
Minister for Works · Tasmania · LP

– by leave - Mr Acting Deputy President, I make this statement on behalf of the Minister for Foreign Affairs (Mr N. H. Bowen), and it will be understood that when I use the first personal pronoun it refers to the Minister.

Since 1945 Australia has spent $1.8 billion on aid. In the last decade official development assistance has more than trebled from $64m in 1961-62 to $200m last financial year. This year it is expected to reach $220m. We have consistently been among the first 3 or 4 major donors, with a figure for direct government aid averaging 0.56 per cent of gross national product over the last 4 financial years. At the same time other financial transfers including export credits, private investment and voluntary contributions to developing countries have also grown substantially. When added to the figures for direct government aid, these become the basis of the calculation used by those advocating a foreign aid target of one per cent of GNP. We believe this method is open to some criticism as an indicator of genuine aid.

However, on this basis Australia last year again exceeded the target with a total financial flow of 1.27 per cent of GNP.

These are the straightforward facts: They clearly show that in comparison with the other Western donors the proportion of our resources allocated is high. In other material which I shall seek leave to table as an annex to this statement I shall explain the basis and motivation for aid programmes; the reasons why those programmes are important to Australia; the important part they play in the joint international effort for the economic development of developing countries; and what we believe to be the high quality and effectiveness of our aid programmes. I shall follow this with a short description of the main programmes and forms of aid under which our development assistance is given. In addition, in another section of the annex I also propose to provide material I have had prepared giving details of our programmes in each country to which we give aid as well as a new collation of informative statistical material.

This Year

In the forthcoming year we shall continue to concentrate our main efforts upon the Asian and Pacific area. This is desirable both in terms of the region’s needs and Australia’s interests.

The Colombo Plan

The Colombo Plan remains at the centre of our foreign aid programmes. Provision this financial year has been made for the expenditure of $52.7m on projects, commodities and technical assistance under this programme, an increase of 12.6 per cent over last year. The Colombo Plan’s great strength and flexibility has been demonstrated over the 21 years of its operation and it has, in every sense, achieved maturity. Its birth was one of the early initiatives of the first Liberal-Country Party Government and successive government have participated in its development.

The area of considerable importance to Australia outside the Colombo Plan region is the South Pacific. In May I announced in the House a new long term programme of $15m to be spent in the area between now and the end of 1975. This, the South

Pacific aid programme, is never likely to be as large as the Colombo Plan but being based on the same principles as the Colombo Plan will, I am confident, be just as successful.

Training and Experts

Under the Colombo Plan, and in our programmes in other parts of the world, we have placed considerable emphasis on the development of human resources. In some cases we have done this by working closely with the recipient governments in the development of and support for training and educational institutions in their own country. Details of some of these efforts are given in the annex to this statement. In other cases where it would not be appropriate to train them in their own country, because of the small numbers involved or the nature of the training required, we bring students to Australia for training in schools, in technical institutes, in colleges, in universities or in specially arranged courses. These sponsored trainees are carefully selected by committees established in their own countries, which ensure that the training sought is to fill a need in that country and that the candidate selected is capable of achieving what is required. We believe that when these students return home the very large majority of them make a substantial contribution to the development of their own countries. At the same time they retain a knowledge and understanding of Australia and Australians, which has been a contributing factor in building the goodwill towards Australia which undoubtedly exists in the region at the present time.

During 1971-72 almost 1,300 sponsored students came to Australia from Asia, Africa and the Pacific to join the 1755 already studying here. Provision has been made in the estimates for a similar level of Australian-sponsored training during the current financial year. Perhaps as good a measure as any of the value and relevance of our training programmes to the developing countries, is the fact that last year 270 students studied in Australia under scholarship schemes financed by their own governments, many of them in precisely the type of courses as are available under our aid programmes. During the past year about 200 Australian expets have worked in various countries of Asia alongside the peoples of those countries. They served in a wide variety of capacities, such as engineers, doctors, teachers, mechanics, civil aviation advisers, foresters and veterinarians. We expect the number of experts to increase in the coming year, with the great majority of them working on the larger economic development projects of our aid programmes.

In addition to the officially sponsored students financed under our aid programmes, we also provide educational places for private students from Asia and the Pacific. These students pay their own fees and their own expenses of travel and accommodation. These studies are, however, supported by Australian government subsidies paid to educational institutions, at a net cost of about $6.8m a year. We believe this programme has been a valuable adjunct to our official atd programme, but it is here that some criticism has arisen. These students select their own courses from a wide range of studies which it is believed will be of value to them and their countries. However, they are freer agents than the officially sponsored students and do not have to meet quite the same highly selective standards as the scholarship students. It is perhaps not surprising that some have been found to have followed inappropriate courses or to be insufficiently motivated about returning home to assist their own country in its development. Nevertheless, it is believed that on balance the provision of places for these private students has been well worth while.

Projects

Turning to project aid, we have had successful and rewarding experiences in a number of fields. We have contributed to the development of the infrastructure in many countries, for example, by the building of roads in Thailand and Malaysia, water supply systems in Vietnam, and port facilities and communications networks in Indonesia. In rural areas we have had success in cattle and sheep breeding in India and rice growing in Fiji. Our project aid has been most rewarding. As I have mentioned, for this type of aid. Australian engineers and experts work alongside their local counterparts. In addition, local as well as Australian money is used with the result that the involvement of the local government authorities is assured. More recently, and as just one example of the way our programmes are embarking on new initiatives, plans are being developed for the Commonwealth Scientific and Industrial Research Organisation to become directly involved in co-operative scientific research programmes in food production in Indonesia and Malaysia. The programmes will be spread over the next decade and cost many millions of dollars. I believe all these programmes will bring benefits to the recipients and reflect credit on Australia.

Trade

The initiatives which the Government has taken to help the economic development of developing countries is not limited to funds spent by my Department, or even to matters falling within its direct responsibility. Australia was a pioneer in the field of encouraging exports from developing countries by the introduction in 1966 of a preferential tariff scheme under which some manufactures and handicrafts could be imported into Australia free of duty or at reduced tariff charges. At the Third United Nations Conference on Trade and Development in Santiago earlier this year, the Deputy Prime Minister, Mr Anthony, announced that this scheme was to be expanded by about 250 items over and above the 350 items it now covers. On the same occasion Deputy Prime Minister sought the inclusion of all developing countries in future trade and monetary negotiations, particularly the 1973 meeting on the General Agreement on Tariffs and Trade. Moreover, the Department of Trade and Industry has established a special section to deal with problems facing developing countries in securing an Australian market for their exports. Often the reasons why developing countries have failed to take full advantage of the concessions prove to be quite minor. For example, packaging is unsuited to the Australian market, or the requirements regarding shipping documentation have not been fully understood. Advice from this section can help effectively in these situations.

Multilateral Aid

These efforts illustrate the success of bilateral programmes which is why they form such an important part of our aid programmes. However, anyone who has carried any responsibility for aid programmes soon comes to realise the staggering magnitude of the problems and the insufficiency of Australian resources to cope with them alone. Accordingly, it has been a further principle of our operations in this field to play our part as a member of the United Nations and those United Nations bodies which are involved in the field of aid to encourage others to assist and to involve the whole international community of developed nations in assisting the developing countries.

The relative merits of bilateral and multilateral assistance have been widely canvassed. It will be appreciated from what I have said that I regard them as being complementary. Both have a place in our aid programme. Bilateral aid has enabled us to concentrate assistance on the countries nearest and of most direct interest to us and on assistance in fields where we have special expertise. The work of the international agencies, including their ability to draw on the resources of many donors, and to make long term analyses of a developing country’s needs also has particular value. They are able to organise assistance for large scale projects which demand considerable capital and expertise. In particular I draw attention to the contribution of the Asian Development Bank. This has paved the way for large scale development projects and has emerged as a major force for development in the ECAFE region.

The analyses which the International Bank for Reconstruction and Development makes of recipient countries’ overall development needs and its organisations of aiddonor groups for developing countries has facilitated our aid planning in various of our neighbouring countries. The value of the International Monetary Fund as a consultative body to nations where Australia is engaged in programme aid such as Indonesia, Cambodia and Laos, should also be noted.

The estimates provide for increased contributions to several multilateral agencies. An important development is the decision to take up an increased capital subscription to the Asian Development Bank of $US127.5m of which 80 per cent will be on call. Payment will be made over 3 years. In 1972-73 we will also make a further contribution of $US250,000 to the Technical Assistance Special Fund of the Asian Development Bank. This year, Australia will also make increased contributions to the United Nations Development Fund, the United Nations Children’s Fund and the United Nations High Commissioner for Refugees. This expanded effort in the multilateral field recognises the new demands being made of these agencies and the importance of their place in development assistance. Australia, in particular, has welcomed the new effort of the United Nations Development Programme to coordinate the assistance programmes of United Nations agencies at the country level. Australia is chairman of the Executive Committee of United Nations High Commissioner for Refugees and a member of the Governing Council of the United Nations Development Programme.

Public Interest in Aid

Members will be aware that, since may, a Sub-Committee of the Joint Parliamentary Committee on Foreign Affairs has been examining aspects of Australia’s foreign aid. It has already considered a number of written submissions and heard a variety of witnesses. I welcome this inquiry as a significant contribution to the creation of informed opinion on aid questions not only in the Parliament but throughout the community. In fact, I believe that this is happening already and is, in part at least, a reflection of the growth in the past year of the awareness of many Australians of the problems of the developing countries and of thier importance to Australia. I have seen evidence of this growing public interest in the work of the voluntary agencies and in the increasing public interest and discussion of foreign aid matters. The Government welcomes this development. On a wider front, the Australian public has also demonstrated its concern for the welfare of people beyond its own borders. In 1971 private citizens through their community groups, churches and voluntary aid agencies or simply as individuals, contributed some $ 18.7m to overseas relief and development projects, complementing, in a humane and effective way, our official aid.

Conclusion

Australia is rich in per capita resources and Australians have a high standard of living. However, it is the individual men and women of Australia, through the taxes they pay, who carry the burden of the country’s aid programmes for our less developed neighbours. Our population is not large by world standards. Our resources are not unlimited. There are limits therefore to what we alone can do in assisting the international community. We have many pressing problems of welfare of our own people and development of our own country to meet. There are naturally some who believe that charity begins and perhaps should end at home. However, the Government believes that most Australians wish to build a society in which not only do we care for each other but one which has a care for its neighbours. This is not only a proper and humanitarian view, it is also sound sense.

The contribution which flows annually from the more developed countries of the western world to the developing countries which is running presently at the rate of about $15 billion annually is critically important to them and represents a real and significant contribution to peace and order in the world. This is particularly evident in the region of Asia and the Pacific to which the greater part of Australia’s aid is directed. Ultimately, in our democracy, it is the community which must decide the priority given to development assistance. I am confident that the Australian people have the breadth of vision to support the level of assistance and the aid policies which the Government has maintained and the place which development assistance has been given in our national priorities. I table the annexure to the Ministerial Statement.

The ACTING DEPUTY PRESIDENT (Senator Wood) - Estimates Committee A will meet in room LI 7 and Estimates Committee C will meet in this chamber. To enable the Estimates Committees to sit, the sitting of the Senate is suspended until the ringing of the bells at approximately 9.30 p.m.

Sitting suspended from 11.25 a.m. to 9.45 p.m.

page 1119

HOMES SAVINGS GRANT BILL 1972

Bill received from the House of Representatives.

Standing orders suspended.

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

Second Reading

Senator WRIGHT:
Minister for Works · Tasmania · LP

– I move:

The purpose of this Bill is to amend the Homes Savings Grant Act 1964-1971 in accordance with the proposals announced by the Treasurer (Mr Snedden) in the Budget Speech. The homes savings grant scheme aims at encouraging young people to save over a period of years for a home of their own when they marry by the offer of a tax free grant to supplement their savings. Since the scheme began in 1964, some 253,000 grants totalling about $11 Om have been paid to assist young couples, and widowed or divorced persons with dependent children, to own and establish their homes. The amendments now proposed will permit more young people to qualify for grants, and will make larger grants available to assist in the acquisition of their homes. Notes explaining the purpose of each clause and and sub-clause of the amending Bill will be distributed to honourable senators.

The Bill makes the following changes: Firstly, the maximum value of a home which may attract a grant is being raised from $17,500 to $22,500. Secondly, the maximum grant is being raised from $500 on acceptable savings of $1,500 or more to $750 on acceptable savings of $2,250 or more. Thirdly, the limit on the amount of savings made in any one saving year that may qualify for a grant is being increased from $600 to $900. Fourthly, the conditions relating to the approval of credit unions are being eased.

The changes in relation to value limit, maximum grant and annual savings are being made in recognition of changed conditions since their present levels were established. The existing limit of $17,500 on the value of a home which may attract a grant has been in force since 27th October 1969. Since then the average value of homes has risen with increases in construction costs, and in the cost of developed residential land. Prices also rise with progressively improving standards of new housing over the years. To take account of these changes, clause 4 of the Bill increases the value limit by $5,000 to $22,500.

The proposed increase in the maximum grant from $500 to $750 is provided for in clause 5 of the Bill. This recognises the need for young people to have greater financial resources for home purchase as housing prices rise. By offering a higher grant as a reward for higher levels of saving the Government maintains the incentive to save for home ownership. The grant payable up to the new maximum of $750 will continue to be $1 for every $3 saved in acceptable forms. Because one of the aims of the scheme is to encourage young people to save regularly over a period of at least 3 years, there is a limit on the amount of savings in any one year which may be counted in determining the amount of grant payable. In the interests of applicants the limit is set at a figure rather higher than the amount that would need to be saved in equal annual instalments over 3 years to obtain the maximum grant. The present annual saving limit is $600 whilst the equal annual amount needed to attract a maximum grant is $500. It is proposed to retain this flexibility by increasing the annual savings limit to $900 in conjunction with the proposed increase to $750 in the annual savings rate which, over 3 years, would attract the maximum grant. The amendments in relation to the maximum value of a home, the maximum grant and the annual savings limit will apply to people who contract to buy or build, or as owner-builders commence building their homes on or after 16th August 1972, the day following the Budget announcement.

Credit unions are playing an increasingly important part in helping young people to obtain their own homes. For this reason the conditions relating to the approval of credit unions for the purposes of the Act will be eased. A credit union needs to be approved so that savings with it by its members can become acceptable savings under the Act. The present conditions for approval of a credit union require that not less than 20 per cent of its annual lending is, and continues to be, in housing loans at a rate of interest not exceeding a prescribed rate; IS per cent of its annual lending must be in housing loans of at least $5,000 for a minimum period of 12 years, and it must lend not less than $50,000 in housing loans annually. The Bill provides that only one of these requirements will remain* Provided a credit union can show that not less than 20 per cent of the total amount lent to its members in its most recently completed financial year has been in the form of housing loans, and provided it undertakes to maintain this proportion in each subsequent financial year, it will be able to become approved for purposes of the Homes Savings Grants Act. A housing loan will continue to be defined as one made for the purchase of residential land, for the purchase or construction of a dwelling and for the payment of associated expenses. The prescribed interest rate provision will no longer apply.

The principal Act will continue to provide that approval of a credit union is deemed to have taken effect on and from the first day of the credit union’s financial year in respect of which the approval is granted. Savings held with an approved credit union by members who have contracted to buy or build their homes, or commenced to build them as ownerbuilders, on or after the date from which approval is deemed to have effect, will then be acceptable for the purposes of the home savings grant scheme. Savings held by credit union members at savings dates during the 2 financial years immediately before the financial year for which the approval is granted will also be acceptable. The amendments will, I am sure, be welcomed by many thousands of young people who are acquiring their first matrmonial homes or who are saving for that purpose. I commend the Bill to the Senate.

Senator O’BYRNE:
Tasmania

– The Opposition considers that this Bill increases opportunities for young people to obtain a home, and we are in favour of that. We have pressed always for the expansion of such opportunities for young people. The conditions relating to the maximum value of a home and the maximum grant have been extended to apply also to credit unions. We have been press ing for these things for a number of years. The Government has accepted our view. The conditions for approval of credit unions are acceptable, as are other things contained in the Bill. The savings held in an approved credit union by members who have contracted to buy or build a home will be acceptable for the purpose of the homes savings grant. All of the proposals announced by the Minister for Works (Senator Wright) are acceptable to us. We believe that this Bill represents an advance on previous policy. Its aim is to help people obtain finance for a home in this day and age of galloping inflation. We do not want to deprive any young people who can benefit from this revision of previous legislation. We do not oppose the Bill anl wish to give it a speedy passage through the Senate.

Question resolved in the affirmative.

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

page 1120

SOCIAL SERVICES BILL (No. 4) 1972

Bill received from the House of Representatives.

Standing Orders suspended.

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

Second Reading

Senator GREENWOOD:
VictoriaAttorneyGeneral · LP

– I move:

That the Bill be now read a second time.

This Bill seeks to give effect, so far as the Social Services Act is concerned, to the proposals announced by the Treasurer (Mr Snedden) in his Budget Speech. The main provisions are: The standard rate of pension for single people and widows with children is to be increased by $1.75 a week to $20.00 a week. This increase will apply to approximately 509,000 age pensioners, 112,000 invalid pensioners and 50,000 widow pensioners with children. The married rate of pension, which is also payable to widows without children, is to be increased by $1.25 a week to $17.25 a week. This increase will apply to an estimated 324,000 age pensioners, 27,000 invalid pensioners and 43,000 widow pensioners without children.

A new pension, replacing the wife’s allowance and called the wife’s pension, will be paid to the wives of all age and invalid pensioners who do not qualify for a pension in their own right. Thus husbands who now receive age or invalid pensions at the standard rate and their non-pensioner wives will both receive pensions at the proposed married rate of $17.25 a week. An estimated 31,500 wives will benefit from the introduction of this new pension, of whom 23,500 already receive a wife’s allowance. Supplementary assistance is to be doubled, to a maximum of $4 a week and, subject to the usual eligibility conditions, will be available to married pensioner couples paying rent. About 108,000 age pensioners, 55,000 invalid pensioners and 23,500 widow pensioners will benefit from this increase. In addition, some 58,000 pensioners will become eligible for supplementary assistance for the first time.

The adult rate for long term sickness benefit is to be increased by $1.75 a week to $20 a week, and the junior rate will be increased by $1 a week to $13 a week. Approximately 7,500 beneficiaries will receive these increases. In line with the proposed increase in supplementary assistance for pensioners, the rate of supplementary allowance for long term sickness beneficiaries is to be doubled to a maximum of $4 a week. This increase will apply to an estimated 2,500 beneficiaries.

The pensions means test will be further liberalised by extending the amounts of means as assessed which permit the payment of full pensions to the same levels as the rates of pensions now proposed. The amount up to which a pensioner’s income may be reduced for means test purposes for each dependent child is to be increased by $2 to $6 a week. A special concession is to be made for recipients of superannuation payments and annuities. These three measures will benefit 228,000 persons at present receiving age, invalid and widow’s pensions at part rates, and will make an estimated 75,000 additional people eligible for a part pension.

Let me now turn to a more detailed description of the features of the Bill.

Rate of Basic Pension

The increases now proposed represent the fourth separate occasion on which the rates of pension have been raised by the McMahon Government in the past 18 months. In March 1971 the standard rate was $15.50 a week and the combined married rate was $27.50 a week. With the current increases these rates will have been increased by amounts totalling $4.50 and $7 a week respectively. In no other period in Australia’s history have increases in pension rates been on a scale remotely approaching these amounts.

On previous occasions when introducing measures to increase pension rates I have pointed out to the Senate the extent to which the inceases have represented gains to pensioners in real purchasing power. It is interesting to note that, measured by the consumer price index, prices have risen by nearly 8 per cent since the March quarter 1971 while the pension, taking into account the current proposals, will have risen in the same period by 29 per cent for single people and over 25 per cent for married couples. Expressed another way, if pensions had been increased since March 1971 in accordance with rises in the consumer price index, current rates would be $16.74 a week for single people and $29.70 a week for married couples in lieu of $20 and $34.50 a week respectively as proposed in the Bill before the Senate. Whilst the position of pensioners has improved markedly over the past 23 years under the Liberal-Country Party Government, and never more so than during the past 18 months, special attention will continue to be given to detecting and eliminating areas of need.

In this context the Government is concerned that some couples who, between them, receive only one pension or pension plus wife’s allowance, sometimes experience financial difficulties if they have no way of supplementing the payments made by the Department of Social Services. The Government’s decision to extend eligiblity for pension at the married rate to the wives of pensioners who are ineligible for a pension in their own right exemplifies the concern shown for people who experience difficulties of the kind to which I have just referred. It will, of course, be necessary to make a consequential adjustment in the husband’s pension in such cases from the standard to the married rate but the overall position of the couple will improve by up to $8.25 a week where the wife receives a wife’s allowance and by up to $16.25 a week in other cases.

Another matter of concern to the Government is the increasingly high rents which are required to be met by pensioners who have little means apart from the pension. We have decided, therefore, further to assist these pensioners by increasing supplementary assistance by $2 a week. The new maximum will be $4 a week. In addition, married pensioner couples with little means and paying rent are to be eligible for supplementary assistance for the first time, payment to be made on the basis of up to $2 a week for each person.

The Pensions Means Test

On many occasions over the past 23 years the Liberal-Country Party Government has referred to its policy of raising the general standard of living of pensioners, directing special relief to the areas of greatest need and encouraging thrift, self help and self reliance. The various structural changes made in the field of the pensions means test since the Government came to office are only some of the ways in which practical and continuing effect has been given to that policy. As I have mentioned, this year we will ease the means test by further extending the means as assessed limits which permit the payment of full pension. In 2 related areas we will increase by $2 to $6 a week the maximum deduction allowed from a pensioner’s income for each dependent child and, in addition, provide a special concession for recipients of superannuation payments and annuities.

The effect of the easing of the means test will be to extend the amounts of means as assessed which permit the payment of full pensions by $520 to $1,040 for standard rate pensioners, including widow pensioners with children, and by $910 to $1,794 for married couples. The allowable means as assessed for widow pensioners without children will also be raised by $520 to $1,040. Expressed in terms of income this will mean that an age or invalid pensioner without children whose property is less than $420 in value may have income of up to $20 a week and still receive the full standard rate pension of $20 a week; some pension will be payable until his income reaches $60 a week. A married couple without children whose property is less than $840 in value may have a combined income of up to $34.50 a week and still receive full pensions of $17.25 a week each; some pension will be paid until their combined weekly income reaches $103.50. Put the other way, where his means consists entirely of property an age or invalid pensioner without children may have assets to the value of $10,800 and receive a full pension; some pension will be payable until his property reaches $31,600 in value. For married couples without children the comparable figures are $18,740 and $54,640.

A widow with one child whose property does not exceed $4,500 may have income from other sources of up to $20 a week, or up to $26 a week if she receives no income for the child, and still receives the full pension. In the latter case, some pension will be payable until her income reaches $83.00 a week or $87.00 a week if the child is under 6 or an invalid child requiring full-time care. If income does not affect the pension she may have property to the value of $12,400 and still receive a full pension; pension ceases to be payable when the value of her property reaches $37,360 or $39,440 if she has a child under 6 or an invalid child. A widow without children whose property is less than $420 in value may have income of up to $20 a week and still receive the full pension of $17.25 a week; some pension will be payable until her income reaches $54.50 a week. Put the other way, where her means consist entirely of property a widow without children may have assets to the value of $10,800 and still receive a full pension; some pension will be payable until her property reaches $28,740 in value.

There are various combinations of income and property in between the figures I have cited which will permit the payment of a full or part pension. However, every single age or invalid pensioner without children whose pension under the present law is reduced because of the means test will, under this Bill, receive an increase of up to $6.75 a week if receiving pension at the standard rate or up to $5.60 a week, each, if a married pensioner couple without children. A widow pensioner with one child will receive an increase of up to $7.75 a week while widow pensioners without children will receive an increase of up to $6.25 a week. In quoting these amounts I have not taken into account the proposed new treatment of superannuation payments and annuities. I will return to this matter in a moment. Sheltered employment allowances and rehabilitation allowances, payable under the Social Services Act, are linked to the pension rates and recipients of these allowances will, as a result, benefit also from the means test liberalisations I have just outlined.

At this point I should say that the proposed extension of the means as assessed limits will not cause a corresponding extension of eligibility for fringe benefits such as the benefits of the pensioner medical service, funeral benefits and rebates on telephones, radio and televison. The eligibility limits for Commonwealth concessions are not increased when the means test is relaxed but are automatically raised in accordance with increases in the basic rale of pension. The effect of the proposed pension increases is that Commonwealth concessions will now be available to single pensioners with means as assessed between $30 a week and to pensioner couples with means as assessed below $51.50 a week. Turning now to the special concession to be applied for recipients of superannuation payments and annuities, where a pensioner is entitled to receive an income from superannuation or annuity, the annual rate payable will be given a property value for means test purposes by reference to a specific conversion factor contained in the schedule attached to the Bill. The conversion of the superannuation or annuity into property will be to the pensioner’s advantage in the vast majority of cases but if in any particular case this should not prove to be so the payments will continue to be treated as income.

As the amount of property to be taken into account in respect of superannuation or annuity will vary with the pensioner’s age, it is proposed to review each case on the anniversary of his birthday with a view to making a further increase in pension available. Mr Acting Deputy President, I seek leave to incorporate in Hansard a table showing the conversion factors to be applied for the capitalisation of superannuation payments and annuities.

Senator Willesee:

Mr Acting Deputy President, in view of the new ruling which has been given, should not we be looking at this?

Senator GREENWOOD:
LP

– If Senator Willesee was reading the speech which has been circulated, he would see that the table is contained in it.

Senator Willesee:

– We are supposed to look at a document before it is incorporated. Is not that the new ruling? Or is it only the Government that looks at it, not the Opposition?

The ACTING DEPUTY PRESIDENT (Senator Wood) - Order! ls leave granted?

Senator Willesee:

– Yes.

The ACTING DEPUTY PRESIDENT - There being no objection, leave is granted. (The document read as follows) -

To calculate the amount to be taken into account, multiply the annual rate of superannuation payment or annuity by the conversion factor applicable to the pensioner’s age at next birthday.

Senator GREENWOOD:

– The present proposal will, of course, lose a great deal of its significance within the next 3 3’ears, when the abolition of the means test for persons over 65 years of age becomes effective. Nevertheless, the Government has decided to introduce this immediate measure because of the substantial hardship suffered by superannuitants in the upper age groups, most of whom paid for their pensions at a time when prices were much lower, and now suffer the effects of inflation. This present proposal involves a major restructuring of the treatment of superannuation payments and annuities under the means test, and the Government is anxious to bring it into effect as soon as possible. However, in view of the complexity and magnitude of the task involved it is not possible for the Department of Social Services to implement the amendment concurrently with the other changes proposed in the Bill before the Senate.

On present indications the increases in pensions arising from the capitalisation of superannuation payments and annuities may not be paid until next year. I would, however, point out to honourable senators that, when the re-assessments of existing pensions are completed, arrears will be paid retrospectively from the first pension pay day after the Bill becomes law. This completes an outline of the provisions in the Bill but I would like to give the Senate some details of the costs involved. The expenditure on social services from national welfare fund for 1972-73 other than that resulting from this Bill, is estimated to reach, $ 1,327m which is an increase of $119m over the expenditure for the previous year. It is estimated that the cost of the proposals in this Bill will approximate $179m in a full year and $132m for the balance of the current year. In accordance with established practice, the increases in pensions and associated allowances will become payable from the first pay day following the royal assent. The increases in long-term sickness benefit will operate in respect of the benefit week ending on the date of the royal assent. Mr Acting Deputy President, I commend the Bill to the Senate.

Debate (on motion by Senator Gietzelt) adjourned.

page 1124

QUESTION

INCORPORATION OF MATTER IN HANSARD

The ACTING DEPUTY PRESIDENT - Order! I wish to make a statement in regard to the address that was given by Senator Greenwood in the course of which one page containing a table was incorporated in Hansard by leave of the Senate. Senator Willesee made a remark to the effect that the necessity to examine a document applied only to the Opposition, not to the Government.

The ACTING DEPUTY PRESIDENT - I want to make it perfectly clear to the Senate that it is now considered that when permission is sought to incorporate a document it should first be examined so that the Senate will know whether it is suitable for incorporation. I think that is the reason behind the decision. It is not a Party issue or anything of that nature. I think that Senator Willesee will know of a certain incident that happened recently. I think it indicates to the Senate that it should view documents before they are incorporated in Hansard. I make that statement to make it clear that this is done purely on a parliamentary basis.

Senator O’BYRNE:
Tasmania

– by leave - Mr Acting Deputy President, appreciate your ruling and your explanation on this matter, but I think that we are making things difficult for ourselves. For the last 70 years this Senate has been able to get by with having things incorporated in Hansard without their being scrutinised by the President. 1 do not think that the President, who is one of our equals, should have any discriminatory power to supervise or to have surveillance over the business of the Senate as to whether things are incorporated in Hansard. When the Senate decides that something will be incorporated in Hansard, it should be incorporated in Hansard without there being any supervision from some other person who imposes himself as the arbiter or the censor.

  1. am objecting to this precedent being created whereby someone has to delay the business of the Senate in order to give his view on whether something should be incorporated in Hansard. Honourable senators assembled should be able to judge for themselves whether they should accept or refuse the incorporation of something in Hansard. I would have liked the President to be present when I expressed these views. I object to this new procedure which is being introduced into the Senate under which someone sets himself up as the boss. The President is an equal of all of us. He has been appointed by us to be an arbiter but he is also an equal. I do not think he has any right whatsoever to peruse some thing and delay the business of the Senate while he exercises his judgment on what should or should not be incorporated in Hansard.

I want to put on record my disapproval of this growing practice whereby someone establishes himself as being the censor of what goes into Hansard. Things have been incorporated in Hansard for a long time and Hansard has been good or bad reading. The. Senate has proceeded along its way. 1 do not think that this practice should be accepted, whereby someone suddenly has decided that he has to peruse all material that is incorporated. 1 am expressing my disapproval and I do not think that it should go on any longer. I hope that you, Mr Acting Deputy President, will not carry on the practice while you are in the chair.

The ACTING DEPUTY PRESIDENT (Senator Wood) - Honourable senators, I do not want to engage in a debate on this matter. I just set out what I understand to be the position which arose from a certain incident. I do not think that any President would veto anything that was of a reasonable character.

Senator O’Byrne:

– What is reasonable?

The ACTING DEPUTY PRESIDENT - We have to recognise the fact that if something is incorporated in Hansard when somebody asks for it to be incorporated without any other honourable senator having the opportunity of seeing it, there can be risks. There was an incident recently in which I do not think Senator O’Byrne would have agreed to the statement being incorporated in Hansard if he had seen it. J understand that the President has the power to excise from Hansard anything that he feels runs counter to the decencies in the publication of Hansard. I am not the President, and I am just giving to honourable senators what has been given to me by others. I feel that if the President has power to eliminate from Hansard things of an objectionable character it is quite in keeping that he should have some authority to view what is sought to be incorporated in Hansard without the material being viewed by anybody else. I do not want there to be a debate on this question. I thought that I would clarify the position for honourable senators so that they would know. The President has power in regard to publication involving technicalities and things of that nature and I think we must recognise that nobody will be unreasonable about matters such as this.

Senator O’BYRNE (Tasmania) - by leave - 1 just want to make it quite certain that I am opposed to the procedure under which the business of the Senate can be delayed while the President peruses something. He is not a quick reader, and a lot of Presidents have not been quick readers; some of them could only read. I do not think that the Senate should accept this principle whereby the business of the Senate should be delayed so that the President can be the arbiter and the censor.

The ACTING DEPUTY PRESIDENT-

Whom would you suggest should do it?

Senator O’BYRNE:

– We should get leave of the Senate itself.

The ACTING DEPUTY PRESIDENT-

How would the Senate know what it was?

Senator O’BYRNE:

– It does not matter. The President has the prerogative afterwards to delete it from Hansard.

Senator Hannan:

– That is nonsense.

Senator O’BYRNE:

– It is not nonsense. Things have been incorporated in Hansard for 70 years and there is nothing in Hansard to which anyone could take exception. I strongly oppose the creation of a precedent whereby the President becomes the censor of what goes into Hansard. Hansard is a record of what goes on in the Parliament. Someone says the 4-letter word ‘fuck’ should not be in Hansard. This is the point I am making: It is an accepted word. I am just saying what is happening in society today.

Senator Little:

– Go out and use it on a street corner in Canberra and you will be arrested for using indecent language.

Senator O’BYRNE:

– What rubbish. You have been using it yourself for years.

The ACTING DEPUTY PRESIDENT -

I ask Senator O’Byrne to withdraw that remark.

Senator O’BYRNE:

– What remark?

The ACTING DEPUTY PRESIDENT -

That remark you have just made.

Senator O’BYRNE:

– All right, 1 will withdraw it.

Senator CAVANAGH:

– You do not know what it is, but you withdraw it?

Senator O’BYRNE:

– I do not know what it is, but I will withdraw it. Why should the President of the Senate be able to censor what goes into Hansard? I am opposed to this practice. Things have been incorporated in Hansard for a long time. Debate in the Senate is recorded in Hansard. This practice has been accepted, and we have never had a censor. I object to the President setting himself up as being superior to a senator. He is an equal. He should not be able to peruse what is presented in debate in the Senate. I want to record my objection to this censorship of Hansard. It has never been done before in the history of the Westminster system, and I will not approve of it.

Senator WILKINSON:
Western Australia

– by leave - It seems to me that we are trying to make a mountain out of a mole hill. I think that originally matter was incorporated in Hansard by leave in order to save having to read a long dissertation about something that was probably quite relevant to the argument being presented. It was on this basis that leave was granted by the Senate to incorporate matter in Hansard. If it was something which the Senate did not want to have incorporated in Hansard, then it was the prerogative of the President to have it struck from the record. When somebody has asked for leave to incorporate something in Hansard - and we have done this on many occasions - and leave has been refused, that person has just gone ahead and read what he wanted to incorporate in Hansard. We have not gained anything; we have lost. To present something around the House in order to see whether it is acceptable to honourable senators on both sides of the chamber seems to me to be just a complete waste of time and it is getting away from the purpose for which originally we incorporated material in Hansard.

I hope that we will be able to return to the situation which existed until a few weeks ago when matter would be incorporated in Hansard by leave of the Senate. If leave was not granted an honourable senator had recourse to reading the whole of the material himself. I hope that that is the situation to which we will return.

page 1127

QUESTION

THE SENATE

Senator DRAKE-BROCKMAN:
Minister for Air · Western Australia · CP

– by leave - The Senate has borne with me tonight as I have tried to introduce a number of Bills. As the hour is now past 10.30 p.m., under sessional orders 1 cannot now introduce those Bills. I ask for leave to introduce 4 repatriation Bills and to have the second reading speeches incorporated in Hansard.

The ACTING DEPUTY PRESIDENT (Senator Wood) - There being no objection, leave is granted.

page 1127

REPATRIATION BILL (No. 2) 1972

Bill received from the House of Representatives.

Standing Orders suspended.

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

Second Reading

Senator DRAKE-BROCKMAN:
Minister for Air · Western Australia · CP

– I move:

With the concurrence of honourable senators I incorporate the second reading speech in Hansard. (The document read as follows) -

This Bill gives effect to repatriation proposals announced in the Budget Speech of the Treasurer (Mr Snedden). The repatriation content of the 1972-73 Budget demonstrates clearly this Government’s acceptance of its responsibilities to the ex-servicemen and women of Australia, their widows and their dependants. Over 300,000 Australians will benefit under the proposals. The Bill provides for a number of improvements in repatriation benefits, but does not include all the changes mentioned in this year’s Budget. Amendments to regulations will be necessary to give effect to some of the improvements, such as the increase of 50c a week in the domestic allowance payable to war widows, and the provision of nursing home care for totally and permanently incapacitated ex-servicemen, intermediate rate pensioners, war widows and World War I nurses.

Many of the improvements must be considered in conjunction with those in the means test area, which my colleague the

Minister for Social Services (Mr Wentworth) has already announced in another place. Increases in the rates of means test pensions, and the considerable easing of the means test, will add substantially to the level of benefits which some war pensioners will receive, including T & PI pensioners and war widows also in receipt of means test pensions. I will now outline to the Senate the specific provisions of the Bill and will relate them to overall pension payments in some cases. It should be borne in mind that all pension payments are free of income tax and, therefore, they have a greater purchasing power then equivalent amounts of earnings that are subject to tax.

page 1127

GENERAL RATE

The general rate war pension of $12 a week at the 100 per cent rate will be increased to $14. The special compensation allowance, paid to the more disabled war pensioners receiving pensions from 75 per cent to 100 per cent rates, will continue at up to $6 a week, thus making the new total payment $20 a week for those in receipt of both war pension and special compensation allowance at the 100 per cent rate. General rate war pensions are presently payable at different levels, according to the ranks held during service. The Government considers that the principle of equal compensation for equal incapacity justifies abolishing these different levels and replacing them with a standard general rate pension of $14 a week at the 100 per cent level. At least 95 per cent of the 192,000 general rate pensioners will, according to the assessed degree of their incapacity, receive the benefit of the $2 increase at the 100 per cent rate. The remaining number will also receive increases in their pensions, but the amount of the increases will reflect this change of policy.

Special Rates

The Bill provides also for an increase in the special (T & PI) rate, which is payable not only to the totally and permanently incapacitated and certain tuberculosis sufferers, but also to the blind and the temporarily totally incapacitated. The special (T & PI) rate will be increased by $3.50 to $48 a week, making a total increase over the past 3 years of $12 a week or $624 a year. The intermediate rate of pension, which is payable to those whose incapacity from war-related disabilities or tuberculosis permits them to work only part-time or intermittently, will be increased by $2.75 to $34 a week.

Special Allowances

Attendants’ allowances, payable in addition to war pensions to the most seriously disabled ex-servicemen, will again be increased this year. The higher rate of $16 a week, payable to the blind who are also afflicted with total loss of speech or total deafness, and to those who have had both arms amputated, is to be increased by $1.50 to $17.50 a week. The lower rate of $9.50 a week, which is payable to those who are blind or paralysed, or who have suffered certain severe amputations, or who are otherwise so disabled as to need an attendant, is to be increased by $1 to $10.50 a week. The amounts payable in addition to general rate pensions to those ex-servicemen who have lost one or more limbs or an eye will again be increased. Those amputees who have always been paid the equivalent of the special (T & PI) rate will receive, in addition to the increase in the general rate, increased amounts of $1.50 a week, bringing their total increases in war pensions and additions to $3.50 a week. Amounts which are, in addition to general rate pensions payable in respect of other amputations or the loss of an eye will be increased by various amounts according to the nature of the incapacity suffered. The new amounts will range from $1.80 lo $11.75 a week.

War Widows and Children

Illustrating the Government’s continuing concern for the dependants of deceased exservicemen whose deaths were related to war service, Increased payments will be made to over 50,000 war widows, and also to their children. The present rate of $.18.25 a week, which most war widows receive, will be increased to $20. War widows are at present paid war pensions at different levels according to the ranks held by their deceased husbands during war service. Consistent with the change of policy in relation to general rate pensions, to which I have already referred, and with a view to eventually abolishing all distinctions of this nature, pensions at all levels other than the highest will be increased to the same level of $20 a week.

In addition, the 50c a week increase in domestic allowance, which will be payable to more than 97 per cent of war widows and which, as I mentioned earlier, will be prescribed in regulations, will bring domestic allowance payments up to $8.50 a week. The Senate will, of course, appreciate that the increases to which I have referred are not all that many war widows will receive. An estimated 20,000 war widows also receive social service means test pensions and the substantial improvements in that, area will benefit those war widows considerably. For a child of an exservicemen whose death was related to war service, the Bill increases the weekly pension to $7.35. For a child who has lost the support of both parents, the pension will be increased to $14.70 a week. Some 4,000 children will benefit from these increases. The Bill also provides for continuation of the war pensions of certain student children under the age of 21 years. Such children, who could number as many as 20,000, are those who do not receive from the Commonwealth, while undertaking full-time study or training, payments in the nature of living or maintenance allowances that are at least equal in amount to the allowances they would receive, if eligible, under the soldiers’ children education scheme. Children receiving allowances at lesser rates will be entitled to continuation of all or part of their pensions. This arrangement is designed to help exservicemen who do not receive substantial Commonwealth assistance towards the maintenance of student children.

Education Allowances

I should like to point out also to the Senate that, although this Bill does not increase allowances payable under the soldiers children education scheme, the Government has authorised payment under that scheme of new maximum rates ranging from $2.60 a week for a secondary school student aged 12 to 1.4 years, living at home, up to $.13.30 a week for one aged 16 to 18 years living away from home.

Service Pensions

Those who suffer from pulmonary tuberculosis, or who have served in a theatre of war and are over 60 in the case of men or 55 in the case of women, or permanently unemployable, qualify for service pensions if they satisfy the means test. The Bill amends the Repatriation Act to extend improved benefits to them. The means test and maximum rates for service pensions are the same as those for age pensions. Proposed increases in maximum pension rates and supplementary assistance, and the easing of the means test, including the conversion of superannuation pensions, will benefit service pensioners substantially and permit many more people to qualify for them. Unlike most previous years, no reductions will be necessary this year in Service pensions by reason of increases in war pensions. On the contrary, increases in each pension will give many people substantial increases in their combined pension income.

Examples 1 shall now give a few examples of how war pensioners, who have no other income or property affecting their means test pensions, will benefit under the Government’s Budget proposals. These will illustrate the pension improvements that those pensioners will enjoy. A single TPI exserviceman, with no means other than war pension, who receives a Service pension, at present is paid $44.50 a week war pension and $1 Service pension, a total income of $45.50. Under the proposals, his war pension will be increased by $3.50 and his Service pension by $5, giving an income of $54 a week. A married TPI pensioner and his wife, who have no means but their war pensions and receive Service pensions, will similarly enjoy substantial increases. Their total war and Service pension entitlement is now $66.29 a week. The war pension increase in their case will be $3.50 a week and their Service pension increases will be $2.50 a week for the member and $5.50 for the wife, giving them a total income in war and Service pensions of $77.79 a week. If such a couple have 2 children aged, say, 13 and 15, the increases in Service pensions will be $6.61 for the member and $9.25 for his wife. When the chil dren’s pensions and education allowances are added, the family income will be $102.28 a week.

Similarly, a war widow with no means other than her war pension and domestic allowance, but eligible for age or invalid pension under the Social Services Act, will enjoy a substantial benefit under the proposals. Her present war pension of $18.25 a week will be increased by $1.75; her domestic allowance of $8 will be increased by 50c; and her age or invalid pension at present $10.13, will be. increased by $5.62. This will give her a total income in war pension, domestic allowance and social service pension of $44.25 a week, a total increase of $7.87. In addition, of course, pensioners in these categories, as well as others, enjoy valuable concessions by way of free medical treatment and other fringe benefits provided by the Government.

page 1129

APPROPRIATION

The Bill appropriates the Consolidated Revenue Fund to the extent necessary to provide during the current year the additional payments to which the Bill gives effect. The foregoing amendments will come into force on the date on which the amending Act receives royal assent, and the pension increases will be paid as from that day, if it is a pension payday, or from the first pension payday thereafter.

The Overall Picture

The increased payments to which this Bill will give effect represent a culmination of the Government’s efforts during this Parliament to enhance the benefits available to incapacitated ex-servicemen and to dependants of those whose deaths were related to their war service. In each of the 3 Budgets, and on 2 other occasions, during the life of this Parliament, the Government has introduced legislation to increase and extend benefits. Our prime concern has been the most seriously incapacitated and the dependants of those whose deaths were attributable to war. In less than 3 years the special (T & PI) rate will have been increased from $36 to $48 a week, an increase of 33.3 per cent. The war widow’s pension will have been increased by the same percentage. The pensions of children of deceased ex-servicemen whose deaths were related to war service will have been increased even more substantially, by 36.1 per cent in the case of a first child, and 72.9 per cent in the case of second and subsequent children, while the pensions of children who have lost the support of both parents will have been increased by 44.8 per cent. Over the same period, the various economic indices have shown movements at lower rates: the consumer price index by 15.4 per cent, the minimum wage by 31.4 per cent and average weekly earnings by 29.9 per cent. The increases which will have been effected during the life of this Parliament will have more than kept pace with the economic changes.

At the same time, the Government has brought about improvements in subsidiary benefits for special cases, as instanced by increased payments in respect of amputees. New benefits, such as the proposed arrangements for nursing home care to which 1 referred earlier, have also been introduced. All of those, when combined with the increases in Service pension rates and the improvements in the means test itself, have resulted in a greatly improved total position being achieved for recipients of repatriation payments over the last 3 years. Compared with an actual total expenditure of $3 17m for the 1969-70 financial year, estimated expenditure for the 1972-73 financial year is $4 19m for the whole Department. I commend the Bill to the Senate.

Debate (on motion by Senator Willesee) adjourned.

page 1130

REPATRIATION (SPECIAL OVERSEAS SERVICE) BILL 1972

Bill received from the House of Representatives.

Standing Orders suspended.

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

Second Reading

Senator DRAKE-BROCKMAN:
Minister for Air · Western Australia · CP

– I move:

With the concurrence of honourable senators I incorporate the second reading speech in Hansard. (The document read as follows) -

This Bill amends the definition of ‘child’ in the principal Act in order to give effect to the extension of eligibility for war pensions to student children between the ages of 16 and 21. The amendment is consequential upon the amendment by the Repatriation Bill (No. 2) 1972 of the definition of child’ in the Repatriation Act. I commend the Bill to the Senate.

Debate (on motion by Senator Willesee) adjourned.

page 1130

REPATRIATION (FAR EAST STRATEGIC RESERVE) BILL 1972

Bill received from the House of Representatives.

Standing Orders suspended.

Bill (on motion By Senator DrakeBrockman) read a first time.

Second Reading

Senator DRAKE-BROCKMAN:
Minister for Air · Western Australia · CP

– I move:

With the concurrence of honourable senators I incorporate the second reading speech in Hansard. (The document read as follows) -

This Bill amends the definition of ‘child’ in the principal Act in order to give effect to the extension of eligibility for war pensions to student children between the ages of 16 and 21. The amendment is consequential upon the amendment by the Repatriation Bill (No. 2) 1972 of the definition of child’ in the Repatriation Act. I commend the Bill to the Senate.

Debate (on motion by Senator Willesee) adjourned.

page 1130

SEAMEN’S WAR PENSIONS AND ALLOWANCES BILL (No. 2) 1972

Bill received from the House of Representatives.

Standing Orders suspended.

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

Second Reading

Senator DRAKE-BROCKMAN:
Minister for Air · Western Australia · CP

– I move:

With the concurrence of honourable senators I incorporate the second reading speech in Hansard. (The document read as follows) - The Bill before the Senate is in accordance with the usual practice of the Government to keep the rates of pensions and allowances payable to seamen war pensioners under the Seamen’s War Pensions and Allowances Act in line with the similar rates payable to other war pensioners under the Repatriation Act. The main purpose of the Bill is to increase, in relation to seamen, the various rates of war pensions as announced by the Treasurer (Mr Snedden) in his Budget speech and being put into effect by the current Repatriation Bill. Under the Bill the existing basic general rate pension is increased from $12 to $14 per week and the existing basic widow’s pension is increased from $18.25 to $20 per week. As explained earlier under the Repatriation Bill, the different levels of general rate and war widows pensions, according to rank held during war service, are being discontinued. The corresponding differential rates in the First Schedule to the Seamen’s War Pensions and Allowances Act, according to rate of pay at time of war injury, are being discontinued under this Bill.

The ‘intermediate’ rate of war pension is being increased by $2.75 per week to $34, and the ordinary weekly rate of allowance for an attendant for a specially handicapped seaman pensioner is increased from $9.50 to $10.50, the special rate payable where both arms have been lost being increased from $16 to $17.50 per week. The Bill also increases the pension rates in respect of the children of deceased seamen coming under the Act. The weekly rate for each child rises to $7.35. Where the mother is dead also, the rate rises to $14.70 for each child. Under the Repatriation Bill, as previously explained, in the case of certain children receiving full-time education, amendments are being made in respect of the continuation of their pensions until the age of 21 is reached. Simi lar amendments are being made to the Seamen’s War Pensions and Allowances Act under this Bill.

The Bill does not have to provide for the increase of $3.50 to $48 per week in the rate of TPI pension, or for the various increases in the weekly amounts payable in respect of the disabilities described in the Fifth Schedule to the Repatriation Act, as the increased rates under that Act will apply automatically to seamen pensioners by virtue of section 22a of the Seamen’s War Pensions and Allowances Act. The increases in pensions will, as usual, be payable on the first pension pay day after the date on which the Act receives the royal assent. I commend the Bill to the Senate.

Debate (on motion by Senator Willesee) adjourned.

page 1131

ADJOURNMENT

Hie Senate - Puckapunyal Army Camp

Senator DRAKE-BROCKMAN:
Minister for Air · Western Australia · CP

– I move:

May 1 say in moving the adjournment of the Senate that it is expected that the Senate will deal with the 4 Repatriation Bills and the Social Services Bill on Tuesday next and that at 8 p.m. on Tuesday Estimates Committee B and Estimates Committee D will meet.

Senator CAVANAGH:
South Australia

– I shall not detain the Senate but I should like to add to what I said last evening about certain events at Puckapunyal Army Camp. Certain allegations were made and, as a result of the subsequent publicity, there have been denials. The Minister for the Army (Mr Katter) went on radio in Adelaide today to give some denial. The Minister said that words such as ‘let the bastard die’ were not used but there had been something about ‘bloody’, but he did not know what it was. I want to mention that there is some verification for what I said last night. In this afternoon’s issue of the Melbourne ‘Herald’ is a statement by a Lt-Col. Stanley Maizey, aged 41, that the claim was incorrect and misleading. The newspaper report goes on:

At Puckapunyal Ll-Col Maizey said: “There was an incident at a rehearsal parade the previous day’.

This is a reference to the lad who had his chin damaged. The report goes on: lt was a hot day and soldiers were keyed-up for the real parade on Sunday, September 10.

Honourable senators will remember that I said it was an incident which occurred on the previous day. The report goes on:

As I inspected the ranks, a recruit fainted in front of me.

Medical orderlies were not quick enough off the mark - and I abused them.

I said: ‘Get him off the bloody parade ground and patch him up when you get him off - before the bastard bleeds to death.

In fact, he was hardly bleeding at all.

I used the words “ bleeds to death “ to get the medics moving.’

This is the explanation. The first point I want to make is that there was an incident in which a lad’s chin was cut. The statement made by the Lieutenant-Colonel is contrary to the information which was given to me That information can be verified and I say that it justifies the holding of an investigation. At such an investigation those to whom I have spoken should have the opportunity to present their case. But a guarantee that no reprisals will be taken against the lads in the camp is needed.

The newspaper report states further:

Lt.-Col. Maizey said today that a national service recruit recently ate rat poison and drank petrol at the camp.

Lt.-Col. Maizey said that the recruit was one of 3 attempted suicides in the last 3 months.

The Senate will recall that I said last night that 3 suicide attempts had occurred in the camp. This illustrates the state of the lads in this camp and the emotional pressures on them. But Lt-Col Maizey justifies the situation. The newspaper report states.

AH these cases were investigated by civilian and Army psychiatrists and psychologists’, he said.

AH the incidents were attempted by recruits to draw attention to their own emotional shortcomings, rather than genuine suicide attempts.’ 1 again say that these facts justify an investigation. If we accept that these men in this camp found it necessary to make attempts upon their own lives to draw attention to their shortcomings, this demonstrates that, in the first place, these people were not fit for service and were wrongly selected for service, lt is no use the Government simply trying to brush off these allegations. A thorough investigation must be conducted into what these lads have had to put up with in this camp.

Senator DRAKE-BROCKMAN:
Minister for Air · Western Australia · CP

– My understanding of the situation does not conform with that of Senator Cavanagh. When I entered the Senate this morning J had a brief on this matter. My understanding is that the lad in question did faint and he did cut his chin. But the medical orderlies were not on the scene quickly enough and the Lieutenant-Colonel used the words which he used not to the recruit who had fainted but the medical orderlies. In view of what the honourable senator has quoted, I will make a further investigation and let him know the results of that investigation.

Question resolved in the affirmative.

Senate adjourned at 10.43 p.m.

page 1133

ANSWERS TO QUESTIONS UPON NOTICE

The following answers to questions upon notice were circulated:

page 1133

CIGARETTE ADVERTISING

(Question No. 1865)

Senator WILLESEE:

asked the Minister for Health, upon notice:

Will the Government now take action to adopt the proposals of the Australian Medical Association with regard to smoking and health, in view of the strong criticism by the Association of the Government’s refusal to ban cigarette advertising, and take other steps to alert the community to the clear health danger inherent in smoking.

Senator GREENWOOD- The Acting Minister for Health has provided the following answer to the honourable senator’s question:

As has been stated on previous occasions in reply to similar questions, the action which the Commonwealth can take in these areas is limited and major areas of responsibility lie within the jurisdiction of the individual Stale Governments.

After a detailed review of the situation the Government has decided to implement a national health education programme and has sought uniform State and Commonwealth action requiring the inclusion of a health warning on cigarette packages.

The Commonwealth will make amounts of up to $500,000 a year available for the next 3 years for a national health education programme against smoking, directed particularly towards young people.

A National Warning Against Smoking Campaign was launched on 17th September 1972. This is an educational campaign which will use televiion, radio and other media to warn of the health hazards associated with smoking. In addition, it is proposed to distribute 2 booklets. One, entitled Why Don’t Elephants Smoke’, is directed towards children of primary school age; the other, which is a facts booklet, is directed towards adults and older children.

I am informed that legislation requiring health warnings on cigarette packages will come into effect in Victoria and Western Australia on 1st January 1973, and it is hoped that similar legislation will come into effect in the Australian Capital Territory and the Northern Territory on the same date. Present indications are that legislation on this matter will be implemented in the other States during 1973.

In addition, the Broadcasting and Television Act has been amended to require that all cigarette advertisements on radio and television be followed by a health warning. It is proposed that this requirement shall come into effect on 1st January 1973.

page 1133

NATIONAL HEALTH ACT

(Question No. 2010)

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

asked the Minister for Health, upon notice:

  1. How many people in nursing homes are receiving assistance under the National Health Act.
  2. How many people are receiving the intensive care subsidy, and has this number been increased or decreased since the Act was amended in 1971.

Senator GREENWOOD- The Acting Minister for Health has provided the following answer to the honourable senator’s question:

  1. and (2) The number of patients in approved nursing homes receiving Commonwealth nursing home benefits varies continually and the total number at any given lim: is not available. This also applies to the number of patients in each of the classifications ‘ordinary care’ and ‘intensive care’.

However, in respect of nursing home benefits paid during the quarter ended 31st March 1972, the following figures provide a general indication of bed occupancy rates. For comparison purposes the figures for the quarter ended 31st March 1971, are also shown.

  1. A Commonwealth benefit at the rate of S3 . SO a day is paid in respect of patients receiving ordinary nursing home care.
  2. A Commonwealth benefit at the rate of S3. 50 a day plus S3 a day supplementary benefit, total 86.50 a day, is paid in respect of patients receiving intensive nursing home care.

The ordinary care rate of $3.50 was increased from $2.00 a day as from 21st October 1971 and, as a result, the intensive care rate was increased from $5.00 to $6.50 a day from the same date.

page 1134

ANALGESICS

(Question No. 2220)

Senator BROWN:
VICTORIA

asked the Minister for Health, upon notice:

  1. Is the Minister aware that Mr Russell, President of the Pharmacy Guild of Australia, has registered some concern about the intention of supermarket to sell pharmaceutical products, and particularly analgesics.
  2. Is the Minister also aware that Mr Russell said Guild members had agreed some time ago that analgesics should be sold under supervision in the interest of the public.
  3. Will the Minister take whatever action is necessary to protect the public against the indiscriminate advertising and sale of analgesics by supermarkets.

Senator GREENWOOD- The Acting Minister for Health has provided the following answer to the honourable senator’s question:

  1. and (2) I understand that Mr Russell has made statements on these matters.
  2. The legislative authority concerning such matters rests with the Slates primarily. However, 1 should mention thatthe National Health and Medical Research Council, which is an advisory body to the Commonwealth and the States, is considering submissions relating to this matter which have been made by certain organisations including the Pharmacy Guild of Australia.

page 1134

TONGA: AIR MAIL

(Question No. 2402)

Senator WILLESEE:

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

  1. Does the Australian Post Office restrict the despatch of air mail from Australia to Tonga to only one flight per week, although5 scheduled flights a week from Fiji to Tonga are available.
  2. What is the reason for the imposition of the restriction.

Senator GREENWOOD- The PostmasterGeneral has provided the following answer to the honourable senator’s question:

  1. and (2) Since 20th August 1972, airmail has been despatched to Tonga 3 times weekly, an appropriate frequency for the quantity of airmail posted in Australia to that destination. Formerly, the frequency of despatch was once weekly as timetable information available to the Australian Post Office indicated that only one schedule flight a week was available from Fiji to Tonga.
Senator COTTON:
LP

– On 22nd August 1972, Senator Primmer addressed a question without notice to the Minister representing the Treasurer, asking whether a Taxation Board of Review had disallowed the investment allowance on farm machinery used to contract on neighbouring farms and whether consideration would be given to an amendment of the law to authorise a deduction in these circumstances. The Treasurer has provided the following information:

In a case recently decided in favour of the commissioner of Taxation, a Taxation Board of Review held that an investment allowance deduction was not available under section 62ab of the Income Tax Assessment Act where plant was purchased and used by the owners partly in a business of primary production and partly for separate contracting activities.

The possibility of amendingthe law to extend the investment allowance to primary producers’ plant used partly in a contracting business has been considered by the Government on a number of occasions. To extend the scope of the allowance in this way would go beyond the purpose of the concession which is directed towards the acquisition of plant for use wholly and exclusively in a business of primary production. In addition, full-time contractors to whom the allowance would not be available would be placed at a competitive disadvantage as compared with farmer contractors if the scope of the concession were to be widened in this way.

Senator COTTON:
LP

– On 22nd August 1972, Senator Webster addressed a question without notice to the Minister representing the Treasurer in the Senate concerning the extension of the income tax investment allowance for manufacturing industry to the building and construction industry. The Treasurer has provided the following answer:

As the Minister for Civil Aviation indicated on 21st March 1972, when winding up the debate in the Senate on the Income Tax Assessment Bill 1972, I have undertaken to consider a study relating to this matter which the building and construction industry is making and, when that study has been received and examined, to consult further with industry representatives. That is still the position.

page 1134

TAXATION

page 1134

TAXATION

Cite as: Australia, Senate, Debates, 21 September 1972, viewed 22 October 2017, <http://historichansard.net/senate/1972/19720921_senate_27_s53/>.