Senate
20 May 1976

30th Parliament · 1st Session

  1. Senate
  2. 30th Parliament
  3. 1976

The PRESIDENT (Senator the Hon. Condor Laucke) took the chair at 1 1 a.m. and read prayers.

page 1781

PETITIONS

Lawley House, Canberra

Senator MULVIHILL:
NEW SOUTH WALES

-I present the following petition from 108 citizens of Australia:

To the Honourable the President and Members of the Senate in Parliament assembled: The humble petition of the undersigned residents and ex-residents of Lawley House, Barton, in the Australian Capital Territory respectfully showeth that:

An embargo on entry of public servants to Lawley House has been in force since the end of February 1976.

The number of residents has fallen as a direct result of the embargo. As an indirect result of the embargo numbers have fallen as residents have left who would otherwise have stayed, because of the implied threat to their security,

Lawley House fills special and important needs which other hostels cannot fill.

Your petitioners therefore humbly pray that the Senate, in Parliament assembled, will ensure that:

The embargo on entry be lifted, and

b ) Lawley House remains open.

And your petitioners as in duty bound will ever pray.

Petition received and read.

Overseas Development Assistance

Senator WALTERS:
TASMANIA

– I present the following petition from 25 citizens of Australia:

To the Honourable the President and Members of the Senate in Parliament assembled: The petition of the undersigned citizens of Australia respectfully showeth that many Australians are concerned at the announced decision by the Australian Government to reduce the 1975-76 overseas development assistance vote by $2 1 million, and by the abolition of the Australian Development Assistance Agency.

We your petitioners do therefore humbly pray that the Australian Government:

As a matter of urgency, reverse the decision to cut the 1975-76 overseas development assistance vote, so as to ensure that the full amount appropriated by Parliament for overseas development assistance is spent this financial year to meet the pressing needs of those in the developing countries:

Reaffirm Australia’s commitment of overseas development assistance being a minimum of 0.7 per cent of GNP, and

Establish a fully independent statutory authority to administer Australia ‘s official overseas development assistance.

And your petitioners as in duty bound will ever pray.

Petition received and read.

Australian National Library

Senator RYAN:
ACT

-I present the following petition from 1 8 citizens of Australia:

To the Honourable the President and Members of the Senate in Parliament assembled. The humble petition of the undersigned citizens of Australia respectfully showeth:

That as of the 29th March 1976 opening hours of the Australian National Library have been reduced to the following times: Wednesday and Thursday, 9.30 a.m. to 10.00 p.m.: Monday, Tuesday, Friday. Saturday and Public Holidays, 9.30 a.m. to 4.45 p.m.: Sunday, 1.30 p.m. to 4.45 p.m.

That the expenditure cutbacks and consequent reduction in the hours of opening of the Australian National Library has seriously disadvantaged part-time students who are able to devote only evening hours to study.

That because of the reduced hours of operation, students, particularly those in the Arts Faculties, have a very limited time available in which to consult primary source material held at the Australian National Library.

That the suspension of purchasing of books on an individual basis, and of university theses on micro-film will seriously disadvantage research students.

That the Australian National University Library and the Canberra College of Advanced Education have only limited collections, both requiring to be complemented by the Australian National Library collections.

That the lowering of educational standards as a consequence of the restrictions on educational facilities, would result in immeasurable non-economic cost to the community.

That the Senate be notified that a similar petition has been handed to the House of Representatives with 2140 signatures.

We your petitioners, therefore humbly pray that the Australian National Library be accessible to readers 9.30 a.m. to 10.00 p.m. daily.

And your petitioners as in duty bound will ever pray.

Petition received and read.

Milk Substitutes

Senator COLSTON:
QUEENSLAND

– I present the following petition from 68 citizens of Australia:

To the Honourable the President and Members of the Senate in Parliament assembled. We, the undersigned citizens of the Commonwealth of Australia by this our humble petition respectfully showeth:

That reduction of the age limit from six years to eighteen months for patients eligible to receive cows’ milk substitutes as a Pharmaceutical benefit under the schedules of the National Health Act will cause serious financial hardship to many families;

That the Government’s action is responsible for a severe increase in the cost of cows’ milk substitutes which penalise parents of children aged eighteen months and over who have a medical need for these substitutes.

That there is an urgent, humane need to restore cows’ milk substitutes to children up to six years of age to the schedule of Pharmaceutical Benefits.

Your petitioners therefore humbly pray that cows’ milk substitutes be restored to the Schedule of Pharmaceutical Benefits for children up to the age of six years as soon as possible.

And your petitioners as in duty bound will ever pray.

Petition received and read.

Australian Heritage Commission

Senator MISSEN:
VICTORIA

-I present the following petition from 13 citizens of Australia:

To the Honourable the President and Members of the Senate in Parliament assembled. The humble petition of the undersigned members of community organisations respectfully showeth that

There is a growing interest and concern in all sections of Australian society for the conservation of the environment, natural and man-made.

That there are also rapidly growing pressures by powerful forces tending towards the destruction of the Australian heritage.

That it is therefore urgent to appoint the Australian Heritage Commission which was approved by both sides of this Parliament and to give the Commission sufficient independent staff, resources and funds.

That Technical Assistance Grants and Administrative Support Grants to community organisations are needed to partially redress the gross imbalance in technical expertise and resources suffered by community groups in pressing the community’s case against the exploiter.

That a proper balance between the Government programme of public austerity and the need for action in conservation would be a modest increase in the budget allocations in these areas over that of 1 975-76.

And your petitioners as in duty bound will ever pray.

Petition received and read.

Australian Heritage Commission

Senator KNIGHT:
ACT

-I present the following petition from 4 1 citizens of Australia:

To the Honourable the President and Members of the Senate in Parliament assembled. The humble petition of the undersigned citizens of Australia respectfully showeth that:

There is a growing interest and concern in all sections of Australian society for the conservation of the environment, natural and man-made.

That there are also rapidly growing pressures by powerful forces tending towards the destruction of the Australian heritage.

That it is therefore urgent to appoint the Australian Heritage Commission which was approved by both sides of this Parliament and to give the Commission sufficient independant staff resources and funds.

That Technical Assistance Grants and Administrative Support Grants to community organisations are needed to partially redress the gross imbalance in technical expertise and resources suffered by community groups in pressing the community ‘s case against the exploiter.

That a proper balance between the Governments program of public austerity and the need for action in conservation would be a modest increase in the budget allocations in these areas over that of 1 975-76.

And your petitioners as in duty bound will ever pray.

Petition received and read.

The Clerk:

– The following petitions have been lodged for presentation:

Immigration: Victorian Teachers

To the Honourable the President and Senators of the Senate in Parliament assembled. The humble petition of the undersigned students and staff of the State Colleges of Victoria respectfully showeth:

That the Immigration of teachers recruited from outside Australia be prevented while students with similar University qualifications are refused entry into Diploma of Education courses and school leavers are refused entry into the state colleges of Victoria.

Your Petitioners therefore humbly pray that the Minister for Immigration, Mr McKellar will carry out this petition.

And your petitioners as in duty bound will ever pray. by Senator Missen.

Petition received.

Overseas Development Assistance

To the Honourable the President and Members of the Senate in Parliament assembled. The petition of the undersigned citizens of Australia respectfully showeth that many Australians are concerned at the announced decision by the Australian Government to reduce the 1975-76 Overseas Development Assistance vote by $21 million, and by the abolition of the Australian Development Assistance Agency.

We your petitioners do therefore humbly pray that the Australian Government:

  1. as a matter of urgency, reverse the decision to cut the 1975-76 Overseas Development Assistance vote, so as to ensure that the full amount appropriated by Parliament for Overseas Development Assistance is spent this financial year to meet the pressing needs of those in the developing countries:
  2. reaffirm Australia’s commitment of Overseas Development Assistance being a minimum of 0.7 per cent ofGNP, and
  3. establish a fully independent statutory authority to administer Australia’s official Overseas Development Assistance.

And your petitioners as in duty bound will ever pray. by Senator Walters.

Petition received.

Australian Assistance Plan

To the Honourable the President and Members of the Senate in Parliament assembled. The humble petition of the undersigned citizens of Australia respectfully showeth:

That since the Australian Assistance Plan is making it possible for citizens to help themselves, thereby ensuring best possible use of limited Government resources, as shown by the fact that over 200 community projects have been initiated or funded through the A.A.P. in the Outer Eastern Region.

Your petitioners most humbly pray that the Senate in Parliament will take immediate steps to continue the Australian Assistance Plan as recommended in the Report tabled by the Honourable the Minister for Social Security, Senator Margaret Guilfoyle in Parliament on the 4th of March. 1976 and your petitioners, as in duty bound, will ever pray. by Senator Teh an.

Petition received.

page 1783

QUESTION

QUESTIONS WITHOUT NOTICE

page 1783

QUESTION

RECRUITMENT OF AMERICAN TEACHERS

Senator WRIEDT:
TASMANIA

– My question is directed to the Minister for Education. The Minister will recall my recent question concerning the Victorian Government’s intention to bring in teachers from overseas for the Victorian Education Department. Although not holding the Federal Minister responsible for the actions of the Victorian Government, is he aware that a group of 350 American teachers arrived in Melbourne yesterday despite the Press having been notified that they would not arrive until Friday, such action obviously being designed to minimise the publicity of their arrival? Can the Minister now advise the Senate of the reasons for the Victorian Government’s actions, and is he aware of any objections by the New South Wales Government to the arrival of these teachers? If there is a surplus of teachers in New South Wales who are able to fill the vacancies which apparently have arisen in Victoria, will the Minister arrange a conference between the 2 State governments to see whether the New South Wales surplus can be absorbed by the Victorian Education Department?

Senator CARRICK:
Minister Assisting the Prime Minister in Federal Affairs · NEW SOUTH WALES · LP

-I recall the honourable senator’s recent question, in answer to which I gave some partial information and said that I would seek further information. Let me say at the outset that the Government and I would be concerned if there were unemployment throughout Australia of teachers who were willing and able to accept jobs of the particular kind being sought. I say that as a matter of background. 1 am now able to advise that the Victorian Education Department had approval from the Department of Immigration and Ethinic Affairs for the planned recruitment. I will give further information about that matter in a moment, but I want to add that that approval was given by the previous Government for the program for this year and has never been questioned. I am advised that the relevant teacher unions were not able to show that teachers would be unemployed as a result of the overseas recruitment. I understand that there are unemployed teachers in Victoria but that they are teachers who are unwilling to move to positions in other regions. The overseas teachers are specialists. I am advised that the overseas recruitment program is being scaled down.

As the honourable senator will recall, in April of last year. I think it was, some question of unemployment of teachers was raised and the question of withholding visas was discussed. An interdepartmental inquiry was set up and for a time there was a suspension of visas. I am advised that a joint immigration-labour team subsequently had discussions with the State departments of education and teacher industrial organisations. In Victoria, where there are 3 unions, there was no objection to the recruitment program as such, nor to the teachers themselves who, the organisations felt, in many instances helped culturally in the overall program. During its discussions, the departmental team found that in some instances local teachers were not mobile if vacancies were in certain industrial suburbs. There were also some difficulties with married women and other temporary teachers who were anxious to remain in certain areas. In any event, the investigating team concluded that the teacher recruitment program for 1975 and early 1976 was satisfactory, with some minor modifications. The issue of visas was resumed, with the intention that there would be consultation as required with the State education departments and teacher industrial organisations in respect of future recruitment proposals.

In October 1975 further discussions were held with the Victorians regarding the 1976 program. No objection was raised by the appropriate unions to further American teachers coming in May and August of this year. As a result, it was planned that Victoria would recruit 600 teachers from the United States and Britain- approximately half from each source- of whom 300 would be primary and 300 secondary. Half of these teachers are expected to arrive in May and the other half in August. The subject areas for the secondary teachers will be in the areas where there are shortages- in English, mathematics, music, physical education and art. I share the honourable senator’s concern regarding unemployment. Indeed, I did not know until yesterday, when I received a telegram from the Australian Union of Students and the teacher trainees union in Victoria, that the arrival was to take place.

As to the final part of the honourable senator’s question, I am not aware of any New South Wales Government reaction. If the honourable senator knows of such a reaction and the nature of it, I will be grateful to receive the information. He suggests that there should be a conference between the Victorian Government and the New South Wales Government regarding a transfer of surplus teachers. That is a matter that can be brought to the attention of those Governments, and certainly I will bring his suggestion to their notice. I am bound to say that one of the outstanding problems has been the willing mobility of teachers. If the mobility problem can be overcome and if the problem of the specialist nature of teachers can be overcome, of course we ought to help any Australian teacher who needs a job and can discharge that job.

page 1784

QUESTION

EDUCATION STANDARDS

Senator WOOD:
QUEENSLAND

– Has the Minister for Education noticed considerable comment in recent times from leading educational personalities related to the fact that today the students of this country are uneducated to the extent that they are considered illiterate, that is, they cannot spell, read or add up and they do not have the basic requirements pf education? ls he aware also that applicants for travel agency work do not even know where cities such as New York or Vienna or islands such as Fiji are situated, indicating an absolute ignorance of geography? In view of the great sums of money that the Government is providing for education and of the concern in the community for this subject, will the Minister and the Government make it mandatory that children are taught those basic elements of education?

Senator CARRICK:
LP

– Some very important issues are implicit in the honourable senator’s question. I will be tabling in the Senate, I hope next week, the report on literacy and numeracy which was commissioned through the Australian Council for Educational Research and which arose out of the report of the House of Representatives Select Committee on Specific Learning Difficulties. I invite the Opposition to move for the adjournment of the debate when that report is presented. Honourable senators will know that there has been some comment in the Press upon it. I hope to make available as much information as possible on the matter. It will be a matter for evaluation by honourable senators as to what the report shows. Nevertheless, it does show that there is a significant percentage of 10 year olds and 14 year olds with some significant disabilities in numeracy and literacy. I will certainly initiate the debate by the presentation of the report. The whole question arises in terms of conflict.

I am bound to say that as far back as the classics we find that Socrates and Diogenes were writing about and regretting the growing illiteracy of the younger generation.

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

-You could not blame television in those days.

Senator CARRICK:

-Nor can we blame the Senate. However, I do not say that with other than minor whimsy because it is a serious matter. There is a worry that I hold in relation to this matter, namely, the belief held by some people in respect of education that one can by innovation and experimentation abandon totally the orthodoxies of the past. I think neither extreme is correct. Basically, to abandon totally is utterly wrong and yet to be rigid and not to innovate or experiment is totally wrong. For my part, I have indicated whenever I could in my own DepartmentI look particularly towards Senator Robertson from the Northern Territory when I say this-that we must ensure that the basic skills are adopted as the building blocks for learning and, on top of that, that there is innovation and experimentation. It is a very important matter, too lengthy to deal with in answer to a question. I shall initiate the report and give the Leader of the Opposition an early opportunity to study it.

page 1784

QUESTION

SCHOOLS FOR HANDICAPPED CHILDREN

Senator KEEFFE:
QUEENSLAND

– My question also is directed to the Minister for Education. I hope that he does not think we are assaulting him again today. Can he indicate whether the rumours of a State Government takeover of schools for handicapped children in Queensland are true? If so,’ does the Minister not agree that parents of handicapped children and the teachers should be consulted before such a takeover is initiated? Will the Government undertake to ensure that proper consultation is achieved before the rumoured takeover is a political fact?

Senator CARRICK:
LP

-Under the previous Government and in accordance with a recommendation of the Schools Commission adopted by that Government certain provisions were made for the State government takeover of schools for handicapped children. They were not total provisions in that whilst they provided for some capital takeover they did not provide for recurrent situations. Senator Keeffe may know that quite a bit of disability has occurred because of this. To offer a toffee apple on the one hand and to indicate scarce rations and some hunger for the future on the other hand is not a total program. This matter has engaged my mind. Equally, my mind has been engaged by the fact that one should not look towards any kind of compulsion in this matter. In the whole field of the disadvantaged and the handicapped, the question of the heart and the soul rather than just the public purse is vital. To me, the personal involvement of the parents and of the community is totally vital. There is a nice judgment to be made about how much a parent should be involved and how much a family can gain in benefit by the State easing the burden on the parent.

I am not aware of any attempt by the Queensland Government to do in any compulsory way what has been suggested. I have no doubt that the Queensland Government would be responding in some way to the policies of the previous Government and to the ones that are at present sustained. For my part, I express the strong view that nothing should be done by way of compulsion to take over an institution where the parents and the community running that institution want it to be a voluntary body. Everything should be done to help voluntary bodies to sustain themselves, with the maximum amount of freedom possible being allowed to enable them to operate. If the honourable senator has specific cases I ask him to give them to me because I would be keenly interested in them.

Senator KEEFFE:

– I wish very briefly to ask a supplementary question of the Minister for Education. The Minister- I think not deliberatelydid not answer the crux of the question, which was: Can he ensure that there will be proper consultation with both the teachers and the parents of the children before any move of the nature I have suggested takes place?

Senator CARRICK:

– The relationship between the school and the government is essentially a State relationship. I wish to make that clear, not in any sense indicating an abdication from what the honourable senator says. I will examine the matter to see what influence or powers the Federal Government has. I will talk to the Queensland Government which I believe would be readily responsive to the suggestion about a voluntary approach and about not enforcing upon parents things that they do not want. I certainly will take up what the honourable senator has said.

page 1785

QUESTION

URANIUM MINING

Senator MAUNSELL:
QUEENSLAND

-Has the attention of the Leader of the Government in the Senate been drawn to reports of stoppages on the Mount Isa to Townsville railway line which could lead to a national stoppage because railway workers in Townsville are refusing to load chemicals for the Mary Kathleen uranium mine? In view of the Government ‘s strict guidelines on uranium mining and also the fact that the Ranger inquiry enables all interested bodies to submit evidence in respect of uranium mining, will the Minister ask the Prime Minister to seek the support of responsible bodies, such as the Australian Council of Trade Unions, to endeavour speedily to resolve this issue so that an industry which is vital to the nation and to the jobs of” thousands of Australians will not be jeopardised by the actions of a few?

Senator WITHERS:
Minister for Administrative Services · WESTERN AUSTRALIA · LP

– Yes, my attention has been drawn to reports -

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

– Did you read it in the Border Watch1)

Senator WITHERS:

-No, Senator Maunsell gave me the newspaper clipping. So my attention has been drawn to the matter which has been reported in one of the newspapers. I ask honourable senators not to take that as an invitation to send me newspaper clippings. Differing stands have been adopted by different unions on uranium mining. The general approach of the Australian Council of Trade Unions has been that all aspects of uranium mining should be the subject of inquiry, and it has seen the Ranger inquiry meeting that requirement. Consistent with this, the Queensland Trades and Labour Council decided to await the findings of this inquiry before taking any further action. However, I shall bring the matter mentioned by Senator Maunsell to the attention of my colleague the Minister for Employment and Industrial Relations.

page 1785

QUESTION

HISTORICAL PAPERS

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

– I refer the Minister for Administrative Services to a statement released earlier this month from the National Library concerning the personal papers of Australians in public life and the desire of the National Library to increase its collection in this area. I ask the Minister. Is it a fact that another organisation within his ministerial responsibility, namely, the Australian Archives, is also a repository of personal papers and has been active in soliciting papers from former Ministers of the Crown and retired members of the Australian Parliament? Will the Minister agree that it would appear that the 2 organisations within his ministerial ambit are apparently competing for sets of personal papers of this nature? I therefore ask the Minister whether he will request the 2 organisations concerned to get together and determine which of the two should be the principal recipient of bequests of personal papers.

Senator WITHERS:
LP

-I think that is a very sensible suggestion. I will pass it on to the 2 organisations concerned.

page 1786

QUESTION

RURAL FINANCE

Senator THOMAS:
WESTERN AUSTRALIA · LP

-I address my question to Senator Cotton in 2 of his capacities, that is, as Minister representing the Treasurer and Minister representing the Minister for Primary Industry. Does the Minister recall the answer that he gave to a question from Senator Walters regarding the setting up of a working party to examine the formation of a rural bank? Can the Minister give an assurance that a study will be made of the successful ‘Farm Credit System’ of the United States of America and the ‘Raiffeisen’ system of West Germany? Will the Minister consider involving the Co-operative Federation of Australia in the working party?

Senator COTTON:
Minister for Industry and Commerce · NEW SOUTH WALES · LP

-I am indebted to the honourable senator. I cannot vouch whether the people concerned have been consulted. But I am aware of the 2 systems that he mentioned, that is, the one in the West German Federation and the work done in the United States. I have had discussions with the Co-operative Federation of Australia and particularly with the area of that body which involves itself in rural credits. I think the whole proposal is very worthwhile. I shall direct that proposal to the Treasurer who, I think, in the first case has the prime responsibility. I will also direct it to the Minister for Primary Industry.

page 1786

QUESTION

URANIUM MINING

Senator MULVIHILL:

– My question is a follow up to that asked by Senator Maunsell. It is based on conversations with officials of the Australian Railways Union in Sydney on the stoppage to which he referred. While I direct my question to Senator Carrick, in view of an earlier conversation, if the Leader of the Government in the Senate wants to take carriage of the answer, well and good. I do put the question to both Ministers. In view of the discussions in Estimates Committee B on Tuesday of this week when Senator Carrick indicated a timetable for the final decision by Mr Justice Fox regarding uranium extraction, will either Senator Carrick or Senator Withers take up with the Minister for Employment and Industrial Relations, Mr Street, a comparison between the position of trade unions and conservationists marking time until this historic decision is made and the action of Mary Kathleen Mines in tooling up in anticipation of a favourable decision? That is the cause of this dispute. I simply say to each Minister that the Australian Council of that Union meets at 4 p.m. today. I would respectfully suggest that if everybody else is waiting for Mr Justice Fox to make his decision, and that will be delivered in accordance with the timetable that Senator

Carrick was good enough to announce on Tuesday, I believe that Mary Kathleen Mines should act with restraint in the same way as the trade unions have acted.

Senator CARRICK:
LP

– I certainly will draw the attention of my colleague, Mr Street, to the substance of what Senator Mulvihill says, but I should advise the Senate that on Tuesday at the Estimates Committee hearing I was asked what would be the likely timetable for the presentation of the Ranger report. The advice that I have is that Mr Justice Fox will finish taking evidence in August and would hope shortly afterwards to complete the inquiry. So, it is only a matter of months before the report will be available. I gave that information. I gave the general assurance that, overall, the Government has a keen interest in all the environmental impacts on the question of uranium but that we would wait for the Ranger report as the Australian Council of Trade Unions will do in this regard. Where there is a new proposal or a new development, obviously an environmental impact study is desirable. I shall certainly ensure that the Acting Minister for Environment, Housing and Community Development looks at this matter and I shall invite Mr Street to study the other part of the honourable senator’s question.

Senator MULVIHILL:

– I desire to ask a supplementary question. I think Senator Carrick would appreciate that quite apart from environmental impact the unions involved in the carriage of all substances which have a uranium origin hold grave fears about certain lung ailments. The Minister will appreciate that in this dispute the aid of the industrial health section of the Department of Employment and Industrial Relations may be enlisted.

Senator CARRICK:

-Let me make it clear that the Government certainly would want to do everything it could to remove any jeopardy regarding industrial health, whether it is from carting uranium or working with sandstone or whether it is a question of silicosis or any of the other pulmonary diseases. Certainly I shall direct the attention not only of Mr Street but also of the Minister for Health to this matter. If there is such an element in this dispute which has not been notified to the Government, and if it is within the knowledge of the honourable senator. I would invite him to give it to me so it may be clarified immediately. An authentic industrial complaint of a trade union should beyond any doubt, bc investigated and acted upon immediately.

page 1787

QUESTION

ADMINISTRATIVE APPEALS TRIBUNAL

Senator DURACK:
WESTERN AUSTRALIA

– My question is directed to the Minister representing the Attorney-General. Does the Government intend to establish the Administrative Appeals Tribunal in accordance with the Act that was passed some time ago by this Parliament? If the Government intends to do this, when is it likely to do so?

Senator WITHERS:
LP

-It is certainly the intention of the Government to set in motion the Administrative Appeals Tribunal. I shall have to seek the advice of the Attorney-General as to when he will be making the announcement of its personnel.

page 1787

QUESTION

SOCIAL WELFARE ORGANISATIONS

Senator GRIMES:
NEW SOUTH WALES

– My question is directed to the Minister for Social Security and refers to the social welfare advisory groups of the Social Welfare Research Centre which I understand the Minister is to establish shortly, more or less to replace the functions of the Social Welfare Commission. When will we be able to know the structure of the various organisations? Will the reports by any of these groups be made public, as Social Welfare Commission reports are, so that all of us can assess the results of their work?

Senator GUILFOYLE:
Minister for Social Security · VICTORIA · LP

– I hope to be making further announcements shortly with regard to the Social Welfare Research Centre at the University of New South Wales and with regard to the membership of the consultative committees which I am in the process of forming. It would be understood that some people have yet to be approached and that decisions have to be taken with regard to the membership of the committees. I believe that reports from the Social Welfare Research Centre would be of great interest to the wider community and would certainly be of such a nature that they could be made public. I think that publication of the reports of work performed by the consultative groups would depend from time to time on the nature of the advice that they were giving. As far as I am concerned, I would welcome any advice that could be given from consultative groups, whether set up by me or supported through my Department, and I would welcome the opportunity for public discussion on any of the matters that they bring forward.

page 1787

QUESTION

TASMANIAN TOURIST INDUSTRY

Senator TOWNLEY:
TASMANIA

– I ask a question of the Minister for Industry and Commerce who, I believe is responsible for tourist matters. I preface the question by pointing out that no doubt the Minister is aware that the tourist industry is an extremely important one to the Tasmanian economy and is a large employer, particularly of females. Is the Minister aware that any government impost that leads to an increase in air fares, such as an increase in fuel tax, has a detrimental effect on tourism to and from Tasmania? If the Government follows the suggestion to increase the cost of petrol by way of increased tax- a suggestion that I hope the Government does not follow- does the Government intend to increase also the tax on aviation fuel, with its obvious restrictive effect on the growth of the tourist industry? Has the Government considered setting up a committee to examine all aspects of tourism and the effects of all taxes and charges upon tourism?

Senator COTTON:
LP

– There will be a meeting of all tourist Ministers on about 29 June when all these sons of matters will be dicussed by State tourist ministers, myself and officials. I am conscious of the importance of tourism to Tasmania. Indeed, I always have been. I am conscious that any increase in the cost of domestic travel has an effect on the economy of Tasmania which depends very much on tourism. All the factors the honourable senator has mentioned will be taken into account by the Government.

page 1787

QUESTION

HOUSING

Senator GIETZELT:
NEW SOUTH WALES

– My question is directed to the Minister representing the Acting Minister for Environment, Housing and Community Development. Is it a fact that the Department of the Treasury has refused a submission from the Department of Environment, Housing and Community Development for a substantial redirection of housing funds to New South Wales? Did the Department agree that economic conditions are such that young couples in increasing numbers are debarred from home ownership? Will this denial maintain the stagnation in the building industry and act as a deterrent to economic revival? Has the Government received submissions from the building industry- both employers and employees- along these lines? In the circumstances, will the Minister advise why Treasury, which seems to give all governments indadequate advice, has such a say and influence in determining government decisions?

Senator CARRICK:
LP

-In relation to the first question directed to me by Senator Gietzelt, I do not know whether such a refusal was given. I will find out. I regret to say that economic conditions do prevent young couples from owning their own homes. That was one of the reasons for this Government being elected on 1 3 December. In a space of 3 years the previous government managed to convert Australia from a home owning community to a community which, in terms of a person on an average weekly wage, could no longer afford to own its home even with 2 working spouses. It is one of the calamities of recent years that home ownership has failed with young couples. One of the reasons my Government has foreshadowed a series of major amendments, including homes savings grants, is the need to stimulate home ownership.

Senator Gietzelt:

– It is a 3-year wait before they qualify.

Senator McLaren:

– At forty bucks a week they have to try to save. How can they do it?

Senator CARRICK:

-If the protests of the Opposition on this matter had been as sincere when they were in government, perhaps there would be no need for me to answer the question. Really, the answer should have been: ‘Physician heal thyself. They caused this trouble. As to the situation in housing, in the domestic sector there has been a significant pick-up throughout Australia. One hopes, with cautious optimism, that it will continue. One hopes that it will continue into the future towards full employment. I am bound to say that in certain areas there is not this pick-up. In the non-residential construction industry there is a significant lag. As to the first part of the question, I shall seek the information and let the honourable senator know.

page 1788

QUESTION

VEHICLE POLLUTION

Senator COLLARD:
QUEENSLAND

– My question is directed to the Minister representing the Minister for Transport. As a preface I point out that under Australian Design Rule 27A which is to come into effect on 1 July this year, all vehicles manufactured after that date are to have certain emission controls added to their engines. It is generally accepted that these controls will increase the cost of the vehicle. I point out that sales tax will also be increased as it is based on the wholesale price. As well, the controls will adversely affect the smooth running of the engine and, quite conceivably, increase the amount of fuel used. I understand that all motorists in Australia are to have ADR 27A inflicted upon them, with the resultant increase in costs and so on, because of a pollution problem in the inner city areas of one and maybe two of our large metropolises. The rest of Australia generally grudgingly accepts that we are constantly being called upon to make sacrifices to assist these areas of population density. However, can the Minister advise the Senate whether we in States like Queensland who breath a purer air are to be called upon to make any more sacrifices in the future to clean up the dirty way of living of the two major centres of population density?

Senator CARRICK:
LP

– I should confess that Senator Collard gave me some indication earlier this morning that he would be asking me a question on ADR 27A. So if I appear, however spuriously, erudite it is only because of forewarning. I knew nothing of the matter before then. I am advised that the decisions on motor vehicle design rules are taken by the Australian Transport Advisory Council, which consists of the State and Commonwealth Ministers with transport responsibilities. I understand that the Council endorsed Design Rule 27A on an Australia-wide basis on the understanding that it would be simpler and cheaper to require all passenger cars to conform rather than to have the problems involved in producing and marketing two classes of vehicles. It is not suggested that there should be one for Queensland and another one for elsewhere or one for the major cities and another one for the rest of Australia. In fact, publicity this morning has drawn attention to the manufacturing problems attributed to the production of too many models in Australia.

It is certain that if it becomes necessary to introduce more severe controls in relation to passenger cars they will be correspondingly more expensive and there will be a wide range of alternatives to consider. For example, the Royal Commission on Petroleum has suggested the use of tax measures to encourage the use of smaller cars. Obviously such measures would have a significant effect on pollution. Of course, one of the other alternatives which will be more seriously considered is the introduction of a special class of passenger car for city use along the lines envisaged by the question. As I have mentioned, the decisions on these matters are not the prerogative of the Commonwealth Government, but I can assure the honourable senator that the Minister for Transport, in consultation with the Australian Transport Advisory Council, will carefully consider all the alternatives, including those which he has mentioned. I will keep in mind the purer and rarified air of Queensland, particularly of north Queensland, which is the area from which he emerges.

page 1788

QUESTION

SYDNEY BOMBINGS

Senator HARRADINE:
TASMANIA

– Is the Minister representing the Attorney-General aware that on Tuesday of this week in the Supreme Court of New South Wales in Sydney a person was sentenced to 8 years gaol after pleading guilty to 5 charges of maliciously damaging 4 buildings and a car in Sydney with gelignite in March and April 1973? Is the Minister aware that one of those incidents involved a Commonwealth car park at Woolloomooloo? Does the Minister recall that the period in which those incidents occurredMarch and April 1973- was around the time of certain statements being made in this chamber about Croatian terrorists, and that some newspapers maliciously speculated that the bombing of the Commonwealth car park at Woolloomooloo was the work of Croatian terrorists? As the person who has been convicted of this offence is a suspended barrister from Sydney with an English-sounding name and obviously no political motivations or connections with Croatians, will the Minister investigate the possibility of obtaining a copy of the transcript of the Supreme Court Judge’s summation and laying it on the table in the Parliamentary Library so that those journalists who libelled the Croatian community at the time can rectify their libel?

Senator WITHERS:
LP

-Not only journalists have libelled Croatians in Australia; it has even been done by a number of people in this place.

Senator Primmer:

– How would you know? You do not read the newspapers.

Senator WITHERS:

-I have heard a number of honourable senators in this place saying all sorts of things about Croatians, quite wrongly and I think at times quite improperly. But I think that the honourable senator has made an interesting suggestion. I shall certainly put it to the Attorney-General and see whether the transcript can be obtained and placed in the library. I doubt very much whether anybody who has made those allegations against Croatians, be they journalists or members of this Parliament, would be prepared to apologise even if they saw the truth.

page 1789

QUESTION

DEFECTIVE VEHICLES

Senator YOUNG:
SOUTH AUSTRALIA

-I ask the Minister for Industry and Commerce: Has he seen reports in today’s Press that thousands of new cars are being sold in Australia with defects and, further, that hundreds of these new cars have serious problems which could cause the owners to make large pay-outs? Will the Minister take these reports seriously and have discussions with the motor industry in an endeavour to eliminate some of these defects, to improve the standard of motor vehicles and also to protect both the safety and finances of the purchasing Australian motorist?

Senator COTTON:
LP

– Yes, we most certainly will take the matter seriously. Indeed, we have been taking it seriously. But answering this question allows me to make one or two comments about the motor vehicle industry in general, on which honourable senators know we are determining policies. In the context of trying to determine satisfactory policies for the whole motor vehicle industry and for those employed in it, it ought to be borne in mind that a very substantia! factor is the customer who buys the motor car.

page 1789

QUESTION

TERTIARY EDUCATION FEES

Senator GEORGES:
QUEENSLAND

– Given the repeated protestations of the Minister for Education that education will not be a victim of the Government’s economy cuts, can he give an undertaking that the Government is prepared to continue the Labor Government’s policy of Commonwealth funding of tertiary education fees? In particular, can the Minister deny that the Government has recently considered abolishing Commonwealth funding for all except first degrees? Is the Minister prepared to state his own unequivocal support for the Commonwealth funding of all tertiary fees as the key concept of equality of educational opportunity for all, irrespective of personal or parental income?

Senator CARRICK:
LP

-It will be to the prospective and infinite pleasure of the honourable senator if he bides his time until 8 o’clock tonight when my colleague on my left, the Minister for Industry and Commerce, will give the Treasurer’s statement, and if he bides a little longer, until I give a statement as Minister for Education, and the secrets of all hearts are disclosed.

page 1789

QUESTION

CADETS CORPS

Senator WALTERS:

– My question is addressed to the Leader of the Government in the Senate in his capacity as Minister representing the Minister for Defence. I asked a similar question some time ago and wonder whether the Minister can yet inform the chamber when an announcement is likely to be made on the reintroduction of the cadet system. Many schools are being disadvantaged by being unable to plan their cadet program along with planning their school year.

Senator WITHERS:
LP

-On 4 May of this year my colleague in another place, Mr Killen, in answer to a question on this matter asked by the honourable member for Casey, Mr Falconer, gave a fairly long reply. I do not wish to go right through the reply but I just quote this part:

Let me say that it is the Government’s clear commitment to restore the cadet system in some form or another. It is also the Government’s clear commitment to seek to save money wherever possible. It is my task to find an equipoise between the two. It is a job with which I am continuing to battle. I would hope that I would be able to put a statement before the House in the very near future.

I think that the Minister for Defence will be making a statement to the Parliament, if not this week then certainly next week. I shall seek information from him as to whether he will be adverting to this problem in that statement.

page 1790

QUESTION

METEOROLOGICAL SERVICES

Senator BISHOP:
SOUTH AUSTRALIA

– My question, which is directed to the Minister for Science, refers to meteorological services. No doubt the Minister will be aware that in the past few months a number of questions have been asked by members of this Parliament and by certain sections of industry, particularly the fishing industry, about the adequacy of the services. The question refers also to the advocacy by General Stretton of the Natural Disasters Organisation for better cooperation between the Bureau of Meteorology and the Natural Disasters Organisation. I ask the Minister: Is he satisfied that the present services of the Bureau are adequate in respect of daily weather forecasting and the supply of information to the community? Does the Minister’s Department co-operate fully with General Stretton ‘s organisation to ensure that there is efficient organisation and back up services?

Senator WEBSTER:
Minister for Science · VICTORIA · NCP/NP

-The Bureau of Meteorology has a very high reputation within Australia and within international circles. Since I have been the Minister, a number of countries have sought the advice of the Australian Bureau of Meteorology relating to the setting up of weather services and the type of administration and facilities that should be used. As the honourable senator knows, weather forecasting is a matter of great public importance especially to industries which depend on it such as the rural industry and the aviation industry, which is entirely dependent upon weather forecasting for the efficiency of its flying services. I question whether there is any other area of Federal involvement which comes under more daily criticism than the Bureau. However, I believe that our Australian Bureau of Meteorology has a very high reputation and offers excellent service.

Great difficulties are posed for Australia due to its low population and very wide area which we may be required to cover in obtaining information upon which to base forecasts. With the advent of satellites a new technique will be introduced which will add to the accuracy of weather forecasting. This is adding greatly to the refinement of weather forecasts, as we will see in the near future. The question of the relationship between the Bureau of Meteorology and the

Natural Disasters Organisation is one which I cannot answer accurately for the honourable senator. I know that there is direct contact between the Bureau and the headquarters of the Natural Disasters Organisation. I have no doubt that all the information available to the Bureau is telexed directly to the Natural Disasters Organisation. If there is any more information available I will obtain it for the honourable senator.

page 1790

QUESTION

SKIM MILK POWDER

Senator TEHAN:
VICTORIA · NCP

– I ask the Minister representing the Minister for Primary Industry: Has any decision been taken about giving further assistance to dairy farmers by underwriting the price of skim milk powder after 1 July, when the present underwriting ends and a new production year begins? The Minister will be aware that the report of Sir John Crawford, dealing with the long term future of the industry, is not expected to be available until August. If no decision has yet been taken to extend the underwriting beyond 1 July, will the Minister arrange for urgent consideration of the matter so that assistance can continue until the report of Sir John Crawford is available?

Senator COTTON:
LP

-I am aware of the detailed examination of the industry by Sir John Crawford. The honourable senator will be aware that I represent the Minister for Primary Industry in this place, as a member of his own Party. I shall direct the question to the Minister to get a precise answer.

page 1790

QUESTION

PARLIAMENTARY STAFF: RESEARCH ASSISTANTS

Senator COLSTON:

-I direct a question to the Leader of the Government in the Senate. Did research assistants who are employed by some Government members attend a seminar in Canberra this week? If so, are any public funds being used to meet the cost of providing travel to Canberra and accommodation in Canberra for those taking part in the seminar or for expenses associated with the seminar itself? If such a seminar is being held this week, have officers of any Government Department or officers of the Parliament, such as the staff of the Parliamentary Library, been co-opted to lecture to the seminar?

Senator WITHERS:
LP

-I did see a letter about the seminar which my research assistant had. I do not know when it is to take place. I will attempt to find out.

Senator Georges:

– It is only the research assistants of Government members, unfortunately.

Senator WITHERS:

-It is only the research assistants of Government members, is it? I do not know. I have forgotten. It is certainly not being done with any public funds from me; I can assure honourable senators of that. I think the arrangement is that if they are travelling here either they will pay their own way or the senator or member involved pays the fare for them.

Senator Georges:

– It is a good idea. Why not make it official for all.

Senator WITHERS:

-Money is a bit hard to earn and it is easy to throw away, as the honourable senator’s party discovered in the last 3 years. I do not believe in taking money from taxpayers for this sort of purpose. As I understand, this is a private arrangement between a number of Government senators and perhaps members, although I do not know whether members in another place are involved. It certainly has nothing to do with my Department. As to whether they have made arrangements to show these people around the Parliament, buy them lunch or perhaps even a beer, and show them where the Parliamentary Library is, I have no information. It certainly is not something that falls within my jurisdiction as Minister for Administrative Services. I suggest that the honourable senator make inquiries of honourable senators who have members of their staff coming here.

page 1791

QUESTION

SOLAR ENERGY

Senator JESSOP:
SOUTH AUSTRALIA

– My question is directed to the Minister representing the Treasurer. In view of the report that petrol prices could double if the Federal Government adopts the recommendation of the royal commission on petrol prices, and in order particularly to conserve existing energy resources, will the Government give consideration to providing home owners and industry generally with an incentive to install solar heaters? Will the Minister ask the Treasurer to give favourable consideration to the removal or reduction of sales tax on such appliances and /or the provision for those who wish to install these units of some taxation deduction in respect of installation costs?

Senator COTTON:
LP

– In a world in which traditional energy is tending to become more expensive- oil and petrol in particular- the possibilities in Australia of solar energy development are really very important. I am aware of the work that has been done in Adelaide by Professor Bockris and of the work of the Commonwealth Scientific and Industrial Research Organisation. Also there has been a great amount of work brought to a high level of efficiency in southern France. The problem is beginning to appear to be coming towards resolution. One of the difficulties has been the great expanse of collector panels and collector frames but increasingly one is coming to the view that the system will become more efficient and collector panels smaller and more efficient. Australia has a particular capacity to develop a solar energy resource. The question is an admirable one. I cannot be precise about what the Treasurer might do but the general development of solar energy in this country is well worth while and I shall take the matter up with the Treasurer.

page 1791

QUESTION

WINE INDUSTRY

Senator McLAREN:

– My question is directed to the Minister representing the Treasurer. Has he received a circular, part of which is reproduced in today’s Press, from the General Manager of Mcwilliams Wines Pty Ltd, Mr D. R. Mcwilliam, in which he claims among other things that the Government has not fulfilled election promises given to the wine industry by Mr Lynch, and that as a result grape growers will be left with fruit? Is the Minister aware that statements by some winemakers earlier this year to the effect that growers would be left with approximately 5000 tonnes of wine grapes unless the Government came to their aid were proved to be baseless when the South Australian Labor Government, after making provision to finance the processing of this reported surplus of 5000 tonnes, received less than 100 tonnes into the pool?

Senator COTTON:
LP

– I have not seen the circular from Mcwilliams Wines Pty Ltd but I listened with care to what the honourable senator said in reference to it. I have been informed that some of the claims made by the wine industry are not correct. I cannot go further than that. This is a matter for clarity and precision in the answer and the question will be directed to the Treasurer.

page 1791

QUESTION

ALL-WEATHER LANDING SYSTEM

Senator KILGARIFF:
NORTHERN TERRITORY

– My question is directed to the Minister for Science and refers to a recent article in the Canberra Times relating to InterScan. Is it a fact that this Australian designed all-weather landing system might be adopted internationally with great financial return to this country, or is Australia losing the race to an American system?

Senator WEBSTER:
NCP/NP

– An article in the Canberra Times dealing with all-weather landing systems was drawn to my attention. Generally, it gave the impression that the Australian designed system called InterScan was inferior to an American invention and had small chance of gaining international acceptance. InterScan was designed by scientists of the Commonwealth Scientific and Industrial Research Organisation in conjunction with technical experts of the Department of Transport and of Amalgamated Wireless. The newspaper article implied that the International Civil Aviation Organisation, that is ICAO, was engaged in selecting a specific hardware system to meet the needs of that organisation. That was an incorrect statement. Its task is to decide between a number of basic techniques which have been prepared, and to satisfy itself that the chosen technique, when finally implemented and fully engineered, will meet ICAO’s specific operational requirements and standards. Competing proposals from 5 countries were entered simultaneously last December. The United States and Australian submissions are not competitive but are complementary. Those are the only countries proposing a time reference scanning beam system. The ICAO has agreed to consider the Australian and United States proposals as a joint submission. If the TRSB system to which I referred is chosen, Australia and the United States will be ahead of the rest of the world in TRSB hardware development. Australia will be poised uniquely to exploit InterScan because of its lead in knowhow of the system. The ICAO decision is due in October of this year, and naturally competition will be extremely keen internationally once a system is chosen because the return by way of sales and royalties will be very high.

page 1792

QUESTION

ALL-WEATHER LANDING SYSTEM

Senator WRIEDT:

– My question is directed to the Minister for Science. In view of the answer he just gave, can he tell the Senate what is the difference between the InterScan system to which he referred and the current instrument landing system in use in Australia and what are the economic advantages to the industry as a result of the introduction of InterScan?

Senator WEBSTER:
NCP/NP

– If I did describe the system, I am quite sure that many honourable senators would not be able to follow my description of it. It is a most involved system. I invite Senator Wriedt to accompany me on a convenient day to Tullamarine Airport, where the system is currently in operation and is being tried regularly. I believe that the advantage to industry in Australia is quite great, and the Minister for Industry and Commerce, the Minister for Transport and I have an interest in ensuring that this particular system is advanced and that Australian industry has the knowledge and indeed, as I said previously, has some advance on other countries in the promotion of the hardware that will be involved in the development of such a system if it is chosen from this international competition.

page 1792

QUESTION

VIETNAMESE REFUGEES

Senator KNIGHT:

– I ask a question of the Minister representing the Minister for Immigration and Ethnic Affairs. I refer to reports, which I understand are accurate, that of the 61 Vietnamese refugees who came from Thailand to Australia in March this year, only three were related to Vietnamese people already living in Australia. Does this indicate that family reunion was not a major consideration in deciding which Vietnamese refugees were permitted to come to Australia on that occasion? I also ask whether the Government is planning at this stage to bring to Australia further Vietnamese refugees, for example from Thailand? If so, will special emphasis be given to family reunion, and what other major criteria will be applied in assessing such applicants for entry into Australia?

Senator GUILFOYLE:
LP

– It is a fact that earlier this year- I believe in January- the Minister for Immigration announced that we would offer sanctuary to some 800 Indo-Chinese refugees and that preference would be given to refugees closely related to people already living in this country. The priority given to reuniting spouses and dependent children with their families followed by other close relatives has been that adopted by the present Government. It is correct to say that only three of the group of 6 1 Vietnamese who arrived from Thailand had close relationship with Australian residents. There are a number of refugees resident in Australia who have contacted the Department recently seeking assistance to bring close relatives to this country. These applications were received after we had sent a special migration team into Thailand in March. The applications from such persons are currently being dealt with by the Department. It is the policy and the approach of the Government to bring those people with close relatives here to Australia as a matter of priority.

page 1792

QUESTION

ONE MILLION VOLT ELECTRON MICROSCOPE

Senator McINTOSH:
WESTERN AUSTRALIA

-Is the Minister for Science aware of the desirability of having at least one one million volt electron microscope in this country? Is he aware that many aspects of scientific research particularly in the fields of material science and mineral chemistry are greatly hindered without access to such an instrument in Australia? Will he undertake to make available the funding required for a one million electron microscope?

Senator WEBSTER:
NCP/NP

– I am unaware of the advantages of a one million volt electron microscope, but I am aware of the great advantage to industry and science of making available such a facility at some degree of voltage. I am aware that electron microscopes serve primarily 2 purposes, namely, the visual examination of structures too fine to be examined with ordinary or light microscopes and the study of surfaces that emit electrons. The first function I have mentioned makes transmission electron microscopes essential research tools in biology, chemistry and metallurgy. A transmission electron microscope, if that is the microscope referred to by the honourable senator, consists basically in its simplest form of a source supplying a beam of electrons of uniform velocity, a condenser lens for concentrating the electrons on a specimen, a specimen stage for displaying the specimen which transmits the electron beam, an objective lens, a projector lens and a fluourescent screen on which the final image is observed. For permanent record, of course, this is usually replaced by a photographic plate or by film.

I am afraid that I am unaware of the advantages of having a one million volt electron microscope. But the honourable senator will be aware that where the human eye is unable to perceive objects which are below a certain limit of size unless aided by devices such as microscopes or electron microscopes these are essential tools. If the proposition that he puts forward is of further interest to science in this country, I will certainly pursue the matter for him.

page 1793

QUESTION

PAYMENT OF BENEFITS

Senator WALSH:
WESTERN AUSTRALIA

– I direct a question to the Minister representing the Minister for Employment and Industrial Relations. Is it a fact that the power to issue cheques for unemployment benefit and similar payments is to be or has been withdrawn from regional offices such as that situated at Northam in Western Australia and that payments in future will be centralised from capital city offices? Will such a move lead to staff retrenchments in country offices? If not, for what reason should the payments system be centralised?

Senator CARRICK:
LP

– I am unaware of the answers to the questions. I will seek answers and let the honourable senator have them.

page 1793

AUSTRALIAN COUNCIL FOR THE ARTS

Senator WITHERS:
Western AustraliaLeader of the Government in the Senate · LP

– For the information of honourable senators. I present the annual report of the Australian Council for the Arts for 1974.

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

- Mr President. I seek leave to move a motion upon the presentation of the report.

The PRESIDENT:

-Is leave granted? There being no objection, leave is granted.

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

– I move:

I seek leave to make my remarks at a later stage.

Leave granted; debate adjourned.

page 1793

PUBLICATIONS COMMITTEE

Senator MISSEN:
Victoria

-Mr President, I bring up the third report from the Publications Committee.

Report- by leave- adopted.

page 1793

JOINT COMMITTEE OF PUBLIC ACCOUNTS

Senator BAUME:
New South Wales

-Mr President, on behalf of the Joint Committee of Public Accounts I present the one hundred and fifty-eighth and the one hundred and fifty-ninth reports. I seek leave to make a statement.

The PRESIDENT:

-Is leave granted? There being no objection, leave is granted.

Senator BAUME:

- Mr President, knowing that the Senate is under some pressure regarding time and having consulted honourable senators on the Committee and the manager of business on the Opposition side, I seek leave to have my statement incorporated in Hansard.

The PRESIDENT:

-Is leave granted? There being no objection, leave is granted. (The document read as follows)-

The Committee has, for many years, conducted combined inquiries relating to expenditure from the Advance to the Treasurer and expenditure from the Consolidated Revenue Fund but has tabled separate reports on both aspects of these inquiries. The 158th report relates specifically to evidence taken by the previous Committee in connection with expenditure from the Advance to the Treasurer in 1974-75.

As honourable senators are aware, after the close of each financial year the Treasurer submits to the Parliament for its consideration and approval a statement of expenditure from the Advance to the Treasurer showing allocations to heads of expenditure made by him from the Advance under section 36A of the Audit Act. The Committee carries out the parliamentary scrutiny of this past expenditure by obtaining explanations from departments for each item of expenditure finally charged to the Advance and selecting the more notable of these for public inquiry.

It is usual for the Committee’s report relating to expenditure from the advance to the Treasurer to be presented during the Budget session but unfortunately this was not possible for expenditure in the 1974-75 financial year because of the double dissolution that occurred in November 1975.

In chapter 1 of the report the Committee has stated that, in examining expenditure from the Advance to the Treasurer, it has sought to ascertain whether or not expenditure from the advance has been confined to urgent and unforeseeable requirements for which provision could not have been made in the original and additional Estimates. The Committee has also sought to ascertain whether or not the departments concerned in the inquiry have maintained efficient administration in the expenditure of funds under the items selected for public inquiry. As the report shows, there were cases where expenditure from the Advance to the Treasurer was confined to urgent and unforeseeable requirements for which provision could not have been made in the Appropriation Acts. In other cases, however, there was evidence of clerical errors, inefficient estimating procedures, and delays which caused expenditure to be charged to the Advance when provision should properly have been made in the Additional Estimates. Attention has been drawn to these inadequacies where they have been discovered.

As in several previous inquiries relating to expenditure from the Advance to the Treasurer, the Committee discovered several cases where amounts were charged to the Advance without warrant authority, in contravention of Treasury regulation 90 ( 1 ). Although the Committee was generally satisfied with the departmental explanations relating to these expenditures and did not examine any at public inquiry, the attention of all departments has been directed to the requirements of the regulation.

The Committee had cause to comment adversely on the brevity of some departmental explanations and the fact that some witnesses appearing before the Committee were inadequately briefed. The Committee also commented on the fact that some departments were unduly slow in furnishing supplementary information requested during the course of the inquiry. As the Public Accounts Committee is a committee of the Parliament it is essential that all departments present evidence of a high quality and that they be represented by senior officers. In this context the Committee notes that the Treasury recently issued a circular directing the attention of all departments to the Committee’s requirements.

The 159th report comprises 2 Treasury minutes relating to previous reports of the Committee. These reports were the 144th report which related to the then Department of Education and Science and the 146th report which dealt with items from the Auditor-General’s report for 1971-72. The Treasury minutes were considered by the previous Committee but the double dissolution of last November delayed their presentation.

The practice of presenting Treasury minutes is the result of an arrangement made between the Committee and the Treasurer before the presentation of the Committee’s first report on 10 March 1953. The arrangement is that the Committee forwards a copy of each report to the Treasurer for consideration immediately that report is tabled. His reply, in the form of a Treasury minute, is then examined by the Committee and included in a later report to the Parliament. The 159th report is one of these later reports. Before preparing its minute, the Treasury consults the departments concerned and obtains their views on the recommendations and conclusions of the Committee. Essentially the Treasury minute system ensures that Committee recommendations are acted upon and informs members of the steps taken to meet their proposals. At present Treasury minutes on five of the Committee’s reports are outstanding.

In the 144th report the Committee recommended that a review then in progress to establish the training needs and organisation requirements of the Department of Education should be concluded and acted upon as a matter of urgency. The Committee noted from the Treasury minute that the review was completed and the Department had determined a broad training policy and training program which is proceeding.

The Committee also had cause to refer to the considerable delays then occurring in the preparation of subordinate legislation such as regulations. The Treasury minute informed the

Committee of new measures designed to overcome past difficulties in the drafting of subordinate legislation. These included the drafting of subordinate legislation by a newly created legislative drafting division in the Attorney-General’s Department and the establishment of the Legislative Drafting Institute which conducts courses and gives instruction in legislative drafting.

In the 146th report the Committee had commented adversely on the arrears that had accumulated in verifying accounts received from the United States armed services for equipment and stores purchased for the Australian armed forces. The Committee has been advised in the Treasury minute that the backlog of work has been overtaken and the position is now considered to be satisfactory. The Committee also expressed its concern that no general principles had been laid down for making provision for employee ‘s long service leave in business undertakings operating through departmental trust accounts. The Treasury minute informed the Committee that policy guidelines have been formulated on the general principles of accounting for furlough and that these guidelines have been circulated to departments. I commend the reports to honourable senators.

page 1795

TIMES OF MEETING

Motion (by Senator Withers) agreed to.

That unless otherwise ordered, on Thursday. 20 May 1976:

page 1795

MINISTERIAL STATEMENT

Suspension of Standing Orders

Motion (by Senator Withers) agreed to.

That so much of the Standing Orders be suspended as would prevent the Minister for Industry and Commerce (Senator Cotton) making a Ministerial Statement on Thursday. 20 May 1976. at 8 p.m. and. when making the statement speaking without limitation of time.

page 1795

BUSINESS OF THE SENATE

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

- Mr President, I seek leave to make a short statement arising from the resolutions just carried by the Senate.

The PRESIDENT:

-Is leave granted? There being no objection, leave is granted.

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

-On behalf of the Opposition I should like it noted- I place it on the record now- that the Opposition has not opposed the resolutions that have just been carried by the Senate because it realises that the remaining legislative program of the Government will be a heavy one. As I understand it, it will be a heavy one particularly arising from certain ministerial statements that are to be made this evening. We do not seek unjustly, as it were, to delay the proceedings of the Senate by a long dissertation on this matter. However, I wish it noted that in our co-operation in this way we also expect to receive some consideration from the Government. We do not expect to be curtailed or restricted harshly or unnecessarily by sheer weight of numbers on the part of the Government in the presentation of our case on the various Bills that will come into this place in the next three or four weeks. We wish it noted now that it should not be said at any time during the remainder of this sessional period that The Government is using the guillotine because the Opposition has tried to frustrate the legislative program.

page 1795

QUESTION

DAYS AND TIMES OF MEETING

Senator WITHERS:
Western AustraliaLeader of the Government in the Senate · LP

– I move:

  1. The The Sessional Order relating to the adjournment of the Senate have effect at the terminating time each day.
  2. Government Business take precedence of General Business after three p.m. on Thursdays.

Mr President, notice of this motion was given on Tuesday last. I would understand from what Senator Douglas McClelland has said on the previous motions that the Opposition probably will not oppose this motion which is the formal motion which is normally put down at this period. The Government still has hopes that we may finish by the target date of 4 June. To a large extent this will depend on the legislation that will be introduced into the House of Representatives today and next Tuesday and on the speed of passage through that place of that legislation.

Therefore, I ought to say to honorable senators that they should not arrange their programs until after 10 June or 1 1 June. The Senate tends normally to sit longer than the other place.

I appreciate what the Manager of Opposition Business said a while ago. As I said at the beginning of this year after we came into Government, I would hope that by sensible programming by the Whips and the Manager of Opposition Business, the normal week’s target which is agreed somewhat between both sides will be achieved. Provided that program of legislation is met each week, there ought to be no need for gags or guillotines. The Senate is in its tenth week of sittings and basically its program has been met. I am informed by the Government Whip that we are one Bill behind on our program. That appears to be a reasonably sensible program. It is set out each Thursday for the following week. I would hope that there would be no need for the use of gags or guillotines.

Senator Georges:

– If you behave yourself, we will behave.

Senator WITHERS:

- Senator, I am always well behaved.

Question resolved in the affirmative.

page 1796

SENATE ESTIMATES COMMITTEES

Motion ( by Senator Withers) agreed to:

That the sitting of the Senate be suspended until 8 p.m. to enable Estimates Committees C. D and F to meet.

The PRESIDENT:

– The sitting of the Senate is suspended until 8 p.m. to enable Estimates Committees C, D and F to meet. The Committees will meet as soon as possible. Committee C will meet in the Senate Chamber, Committee D in Senate Committee Room No. 1, and Committee F in Senate Committee Room No. 5. The bells will be rung for 3 minutes prior to the meeting of the Estimates Committees.

Sitting suspended from 12.22 to 8 p.m.

page 1796

QUESTION

FISCAL POLICY DECISIONS

Ministerial Statement

Senator COTTON:
New South WalesMinister for Industry and Commerce · LP

– This statement is a further major step in the implementation of the Government’s economic policy; it represents the culmination of 5 months’ work which began on 14 December 1975. The decisions which will be announced tonight establish this Government’s priorities. Because of the intensive work which has gone on during the past 5 months the Government is able to act decisively some 3 months before the traditional August Budget. The measures which will shortly be outlined will enable the Government to regain control of the national Budget- a task which is essential to the attack on inflation and unemployment and returning the private sector to its rightful role. Above all they will establish confidence in the Government’s capacity to deal with the economic problems which we as a nation face. Difficult and hard decisions have been required; they have been taken. The Government has set out to greatly reduce the rate of increase in Commonwealth spending and, consequently, in many cases individual programs have been strictly curtailed or even reduced from present levels. Without this determined action the pressing taxation and family reforms which the Government has decided to introduce would not have been possible.

This statement will enable all Australia to see the main course on which the Government is set; it charts that course. The announcements being made tonight are merely part- though an important part- of the continuing and progressive pursuit of lines of policy which we have pursued from the outset. Unlike its predecessor, the present Government has always had a clear conception of what needed to be done- and how to do it. The election policy speech delivered by the Prime Minister (Mr Malcolm Fraser) on 27 November included the following passages:

On 14 December, we will start the most rigorous planning for the 1976 Budget. We as a Government will be concerned that you get value for the dollars we spend on your behalf.

Spending on essential Education, Health and Welfare programmes will be protected against inflation. At the same time, a great many improvements in administrative efficiency can and will be made.

These actions will give the private sector room to start expanding production and providing jobs.

Over the next three years, we will introduce a number of major reforms to direct resources away from Government and back into the hands of individuals and business.

These passages sum up our public expenditure policies to date. They are the genesis of the further decisions being announced tonight.

The Strategy Restated

There are sufficient signs now for believing that economic recovery is under way, though it is at an early stage and will require careful nurturing. The real threat to a sustainable long-term recovery is inflation. If inflation continues unchecked- or seems likely to do so- at its present crippling rate, businessmen will continue to place first emphasis upon survival and the avoidance of any risk. They will postpone investment and pare inventories and employment to the bone. Consumers will save rather than spend. An increasing proportion of local demand will be supplied from overseas as Australia’s international competitiveness declines progressively.

It is because the Government wishes to avoid these things that it is continuing to aim for a moderate balanced recovery in which the public sector stands aside to permit the private sector to grow. At the same time investment needs to be actively encouraged in order to lessen the possibility of the recovery running into bottlenecks at an early stage. It will be clear from this that we are not looking for a rapid upsurge in the level of activity but for a strong, soundly-based and sustained growth at a rate which will endure. As we have been arguing before the Conciliation and Arbitration Commission, sustained recovery can hardly come about so long as real wages are maintained at the inflated level which, over the past 3 years, they have attained.

Without progress, and the expectation of progress, on the wages front, we are locked in to a rate of inflation which will simply not permit a large increase in investment and the provision of job opportunities at a rate which would significantly reduce the present level of unemployment. To attempt to force a more rapid recovery with inflation poised to take off again from its present double digit rate would prove counterproductive. It is this reality which closes off easy options and dictates policies which have a longer view.

One of the more depressing aspects of the current economic situation is that under conditions of inflation- particularly of the rapid variety we have been experiencing over the last few years -it is the poor and the disadvantaged who are the hardest hit. Inflation is a hidden tax which falls most heavily upon the disadvantaged, the unorganised, the aged and the thrifty. That fact, to which we have been pointing for some time, is becoming more generally recognised. It has been, for example, well documented by the reports of the Henderson poverty inquiry. Over and over again we have pointed to the nexus between inflation and unemployment. Over and over again we have pointed also to the nexus between the inflation we are now experiencing and the extraordinary degree to which, over the last 2 years, the Budget has been pushed into deficit by the insensate rush to inflate the level of government spending. This has all been set down at length in the statement on the economy and economic policy which I delivered to the Senate on behalf of the Treasurer on 4 March last and elaborated further, so far as monetary conditions and prospects are concerned, in the Treasurer’s statement to the House of Representatives on that topic on 25 March.

The Government’s policies have in no way changed since those statements were delivered. They remain, in essence:

To bring inflation under control as the first priority.

Pursuant to that, to halt the massive increases in government spending and the growth in the public sector, and in the process reverse the trend to big government and centralised bureaucracy; tax indexation is a key element in achieving this objective.

As part of this process, to control the Budget deficit, so that the huge amounts of liquidity flowing from it and the inflation which they generate may be checked.

To administer monetary policy flexibly so that the rate of monetary expansion will be less accommodating to inflation but at the same time will permit financial institutions to underwrite recovery in the private sector.

To encourage the private sector to expand, indirectly through inflation control and directly via the investment allowance and other measures.

To conduct exchange rate and protection policies in a way which contributes to the antiinflation objective.

To exercise all our available powers, persuasion and influence to achieve a more moderate increase in wages; tax policies here are again of great importance.

To tap that growing reservoir of good sense in the community which recognises that excessive wage and cost increases are eroded by the inflation they cause and, what is far worse, reduce living standards by destroying job opportunities, adversely affecting productivity and jeopardising economic recovery.

The decisions being announced today will conform in all respects with those objectives.

First and foremost, they mean a major step towards reining in the growth of the public sector through the overall reductions we have made in the expenditure programs coming before us.

Secondly, they mean a major step, in the Medibank area, towards restoring greater freedom of choice while maintaining universality of health cover and avoiding any means test but, in the process, lightening the load on the Budget further.

Thirdly, through the new family allowances proposal they involve a major decision to improve the lot of the disadvantaged in the society at relatively slight net cost to the Budget deficit.

Fourthly, because of the restraints we have imposed on the growth of Commonwealth spending, we shall be able to introduce our personal tax indexation proposals while maintaining a responsible approach to the overall prospective Budget outcome.

Fifthly, the introduction of personal tax indexation will itself produce a desirable discipline upon future Government spending decisions; and

Lastly, while this is neither the time nor the occasion on which to present a detailed budgetary prospect for 1976-77, we are now confident that our Budget when brought down in August will provide for a deficit substantially smaller than the deficit in the Budget we have inherited.

Senator COTTON:
LP

-It is quite a long job, Senator. We will be here for hours yet. Special mention should be made of wages policy. The Government’s wages policy is central to its approach to bringing inflation under control. Under present circumstances wage restraint is essential to the economic future of this country. The trade unions have made it clear that they see a necessary link between wages policy and tax indexation. The Government is sensitive to that approach. We realise that wage earners are more likely to be willing to moderate their wage claims if the wage increases they receive are not being automatically subjected to higher tax rates through the mere workings of inflation on the personal tax system.

We believe that our policy on tax indexation, as a permanent feature of our taxation system, should make it possible to work out with the unions a rational wages policy which will be of benefit to all workers and to the nation as a whole. The new arrangements for assistance to families, particularly families on low incomes, should also help in this direction. We hope that the measures being announced will contribute to fruitful talks with the unions next month.

The Public Sector

From the outset one- though only oneelement in our policy approach has been our utter conviction that the growth in public sector spending must be reined in if inflation is to be checked; and as already indicated, unless inflation can be checked, sustainable levels of output and employment will not be achieved. That is the whole thrust of what the Government has in recent weeks been putting to the Arbitration Commission.

On 14 December 1975 we therefore set ourselves, as a major priority in our strategy of recovery, the task of regaining control over Commonwealth expenditure. To this end new procedures were established for the control of spending and the administration of government programs. In December it was decided that all but the most essential new expenditure proposals should be deferred and that additional funds for essential on-going activities in 1 975-76 should be offset against expenditure in other areas wherever practicable.

In January urgent reviews were made of Government spending programs and of staffing levels both in the Public Service Act area and in the area involving Commonwealth bodies not in statutory relationship with the Public Service Board. Arising out of these reviews, decisions were taken which have been estimated to reduce Budget outlays in the balance of 1975-76 by some $360m below what they would otherwise have been. The results of these and other measures to tighten our grip on expenditures are already showing up.

On the staffing side, between end-November 1 975 and end-April the number of Public Service Act staff and staff in bodies outside the Public Service Act area for which staff ceilings were also set has declined by 8250 or 2.5 per cent, to 324 000, which was already below the June 1 976 target ceiling level of 326 380; in the Public Service Act area alone the decline was 3.4 per cent. While there are always considerable uncertainties about budgetary estimates until the numbers actually go up, on present indications actual outlays in 1975-76 will be somewhat less than the original Budget estimate of $2 1,915m. If achieved, it will be the first occasion since 1968-69 that this has happened and it will be in marked contrast to the situation in 1 974-75 when final outlays exceeded the Budget estimate by a staggering$1, 700m.

The pick-up in our revenues as the economy begins its tentative recovery is also now beginning to appear in our accounts. As a result of this and the actions taken earlier, it is now clear that we shall finish the present financial year with a deficit well below what was in prospect when we took office. I mention these facts as demonstrating the results, now coming to hand, of some of the measures we took immediately on assuming office. But as well as these immediate measures, the Government has been preparing from the outset to deal on a longer term basis with what was obviously going to be for some time a major problem area.

All along we have recognised that the results of the extravagance of our predecessors could not be put to right within 6 months. One central element in putting things to rights must be the restoration of budgetary responsibility through rigorous restraint on expenditures. There will be some areas where we shall be cutting deeply in order to eradicate the waste and inefficiency of the past or to amend the thrust of policies not of our making.

In other areas we shall be maintaining the present real levels of the programs involved. In others again we shall be providing for some increase in spending in real terms, although usually less than had been sought. As a result of our decision we shall be relieving the expenditure side of the Budget of what would otherwise have been very considerable sums. Overall, however, the resulting emphasis will be on reducing the rate of growth in expenditure- and on doing this in ways which are consistent with our overall economic and social objectives.

The decisions to be announced shortly relate to expenditure restraint, Medibank, a new scheme of family allowances and personal tax indexation. These decisions should be seen as but the latest instalments of the Government’s continuing policy to restore economic health and at the same time to improve the living standards of less well-off sections of the community.

Reining-in Government Spending

We have set about the task of reining-in Government spending in an orderly and systematic manner. We began immediately after the Government’s election. On 24 December 1975 departments were asked to submit their forward estimates of projected 1976-77 expenditure, after rigorous scrutiny and approval by their Ministers, to the Treasury by 12 February. The Treasury Report on these forward estimates was completed on 1 1 March. Although relating largely to existing- as distinct from new- policy programs, the forward estimates then implied a further increase of about $4,700m in Budget outlays in 1976-77 and a deficit of $4,800m. These figures illustrate all too starkly the enormous and snowballing costs of the multitude of programs introduced by the previous Government.

The Economic Committee of Cabinet gave preliminary consideration to this situation at its meeting on 15 March. It agreed that such a forward prospect was just not credible in terms of responsible economic policy, or of the basic philosophy of the present Government. Since then there has been the most searching examination of Government expenditure programs by officials and Ministers. In some cases large programs have been involved, in others small ones. In total, the reductions that have been effected compared with the original forward estimate of expenditure amount to nearly S2,600m. As a result of those decisions the task of framing, over the next few months, a responsible Budget for 1976-77 has now been reduced to manageable proportions. This was a foremost objective of the expenditure review exercise.

I should however emphasise that the Government is not tonight bringing down a Budget. We are not for the most part announcing detailed figures of appropriations for particular expenditure programs for 1976-77. I am not dwelling upon the economic prospect for the year ahead in the way that is customary in a Budget Speech. I am not speculating upon what, when we come actually to frame the Budget, the outcome for the deficit will be. Clearly, given the enormous budgetary imbalance which we have inherited, we cannot withdraw to a balanced Budget situation overnight. Indeed, if we were to do so, the repercussions for the economy of the measures which would necessarily be involved would not be acceptable. We can achieve a substantial reduction in 1976-77 and we shall now do so when the Budget is brought down in August.

The present exercise, though it will be of central importance to the Budget we frame in July, cannot substitute for the normal budget-making procedures. It is not intended to do so. The reduction of $2,600m from the original forward estimates will however make it possible, within the context of a sound overall fiscal framework, to announce now certain other decisions which are of vital interest to all sections of the community. In the light of our efforts on the expenditure side, and on the basis of the advice available to us, these decisions can now responsibly bc announced. Their announcement will now reduce uncertainty, add to confidence and assist in economic recovery. The expenditure decisions which have been taken to date, and those that will be taken over the next couple of months, will be reflected fully in the Budget to be brought down in August. Some of the more significant decisions can, however, be indicated now: additional details will be provided by the relevant Ministers where appropriate.

Environment, Housing and Community Development

Commonwealth expenditure on urban and regional development programs- including growth centres, land commissions and sewerage works- has grown very rapidly over recent years. The forward estimates pointed to further substantial increases in 1976-77. Although the activities carried out under many of these programs are desirable, the programs do involve large and continuing expenditures. If the Government is adequately to restrain the growth in total public spending, and at the same time to insulate as far as possible payments to needy individuals, much of the restraint on expenditures must fall on these large and costly programs.

Against this background the Government has initiated a complete and searching review of all major urban and regional development programs to ascertain the nature and extent of its future involvement in these areas. An interdepartmental committee has been established for this purpose and asked to report urgently. Matters to be covered in this review will include, for example, the overall impact of the land commission programs on the availability and price of urban land and their impact on the viability of the private sector. The committee has also been asked to review the Commonwealth role in the growth centres program.

In the light of this review it is envisaged that there be an early meeting with the Premiers to consider the future of this program. Pending the results of these various processes, the Government has decided to meet on-going firm commitments arising from agreements previously entered into. The decisions taken on the whole gamut of programs administered by the Department of Environment, Housing and Community Development have the effect at this stage of reducing that Department’s original forward estimates by over $400m. Substantial reductions have been made also in the forward estimates of several other departments.

Post and Telecommunications

The projected call of the Department of Post and Telecommunications on the 1976-77 Budget, for example, has been reduced by close to $250m. The total amount to be available to the Australian Telecommunications Commission for its capital program in 1976-77, apart from funds available from its own internal resources, will be S415m; this compared with $392m in 1975-76. However, of the 1976-77 amount it is proposed that only S2 15m be provided to the Commission from the Budget; subject to the agreement of the Loan Council, the Commission- a major business undertaking- will be permitted to borrow the balance of $200m itself on the local market. This will not reduce the call on resources of the public sector overall but it will relieve the call on the Budget to the extent of $200m in 1 976-77.

The other major reduction from the forward estimates of this Department is in respect of the Australian Broadcasting Commission. The amount to be provided to the ABC for its operational and equipment expenditures in 1975-76 is currently estimated at about $133m. This amount does not include costs- estimated at $33m- of facilities and services provided for the national broadcasting and television service by the Telecommunications Commission and by other departments. The net cost to the Budget has grown tremendously over recent years as a consequence partly of the abolition of radio and television licence fees and partly of a large growth in the activities and staff of the Commission. In 1976-77 we shall provide $128m to the ABC for its operational and equipment expenditures, with provision for unavoidable increases in costs during the year.

Transport

Expenditure on transport facilities and services of all kinds represents such a large slice of the Budget that some restraint on projected expenditures in this area would have to be imposed if we were to achieve the kind of overall reductions we were seeking. In all, our recent decisions reduce the forward estimates of the Department of Transport by roughly $220 m, although total Commonwealth expenditure on transport services and facilities next year is still expected to be somewhat higher than this year’s level. Although less than the increase provided for in the forward estimates, the Government is proposing to appropriate an additional $35. 8m for assistance to the States for roads in 1 976-77.

Total expenditure from the 1976-77 Budget for roads will amount to $453. 5m, including the carryover from 1975-76. compared with the estimated cash outlay in the current year of S4 13.5m. It is the Government’s intention that in the distribution of these funds particular attention should be given to the needs of local government authorities. The Government has decided, in the interests of administrative efficiency, to amalgamate the Commonwealth Bureau of Roads and the Bureau of Transport Economics.

The Government has also made a number of decisions in the area of railways. The Australian National Railways Commission will withdraw its twice-weekly freight service between Darwin and Larrimah in the Northern Territory but will continue with the co-ordinated road /rail service to Darwin, which will be able to provide a faster and more regular service.

The Government has decided to ask an independent committee to inquire into the Adelaide/Crystal Brook railway project and the options available, and into the Tasmanian railway system. There is also to be a review of the construction standards and costs of the Tarcoola/Alice Springs railway project. Reports on these matters are expected within 2 months. In the meantime, expenditure and new commitments in these areas will be kept to a minimum.

The Government is concerned at the increasing costs to the Budget of providing civil aviation services. Operating expenditure in this area in 1976-77 is to be held at $ 153m- the currently estimated level of 1975-76 expenditure- and expenditure on technical equipment will be substantially reduced.

Air navigation charges will be increased by 1 5 per cent with effect from 1 December 1976 and we will be examining urgently other ways both of reducing the costs of these facilities and of recovering more of the costs involved. The Government proposes also to examine ways of rationalising the fleet of Commonwealth-owned aircraft with a view to reducing expenditure in this area.

Finally, I mention that an estimated $45 m will be available to the States in 1976-77 for projects already approved under the Urban Public Transport improvement program. This is substantially less than the amount sought in the forward estimates but still represents a significant increase on the amount being provided under this program in 1975-76; in all the circumstances, it is not proposed that any new projects under this program should commence in 1976-77.

Construction

The forward estimates for the major programs of the Department of Construction have been reduced by about $60m. Within the Civil Works Program (Part I), all works now under construction will be carried through to completion. So far as new works are concerned, the Government has taken steps to ensure that only projects that meet the strictest test of essentiality are commenced in 1 976-77. There is an estimated $ 100m worth of new works in this category, a somewhat lower level than the volume of new works programmed in recent years. I note in passing that a substantial portion of these new works will be located in the Northern Territory.

Within the furniture and fittings vote of the Department, we shall, consistent with our intentions for continuing restraint in the growth of the Public Service, reduce expenditure in 1976-77 on furniture and fittings for civil departments below the level of 1975-76. The Department’s large forward estimate for civil repairs and maintenance activities has also been pared substantially to exclude provision for all but essential activities.

Administrative Services

The same rigorous approach to the departmental forward estimates is reflected also in our decisions on the major programs of the Department of Administrative Services. In all, these decisions are estimated to reduce the projected call on the 1 976-77 Budget by over $30m. The major reductions are in respect of the Overseas Property Bureau and the civil acquisitions program. The allocation to the Overseas Property Bureau in 1976-77 will be sufficient only to meet current commitments on overseas property services, buildings under construction and plant and equipment, while expenditure on repairs and maintenance is to be rigorously controlled. Expenditure under the civil acquisitions program will be confined to essential property acquisitionsmeaning largely to settlement of acquisitions already in progress.

Aboriginal Affairs

In recent years large sums have been provided from the Budget for Aboriginal advancement through a multitude of diverse programs. Unfortunately, some of this expenditure does not appear to be achieving the results intended. The Government has decided, therefore, that 1976-77 should be regarded as a period of consolidation and re-assessment of the Department’s activities, with a view to ensuring that maximum effectiveness is obtained from future expenditure programs in this area. This is consistent with the Government’s action last January in appointing Mr David Hay to conduct an examination for the Government of the delivery of services provided by the Department of Aboriginal Affairs. It is expected that Mr Hay’s report will be available to the Government shortly.

As a consequence of this general approach the aggregate amount to be provided for Aboriginal programs in 1976-77 will be significantly less than estimated expenditure in 1975-76 and substantially less than the forward estimate. A large part of the shortfall compared with 1975-76 reflects our decision to confine grants to Aboriginal housing associations in 1976-77 to outstanding legal commitments pending the outcome of urgent investigations into past practices in relation to these associations. I would mention here, however, that the Government’s proposed new arrangements for assistance to families will be of particular benefit to Aboriginal families.

One further matter which I should refer to is the Government’s decision to abolish the Aboriginal Advancement Trust Account from 1 July 1976. Funds for the programs previously financed from the Trust Account will in future be appropriated on the normal division and item basis. This will require greater specification of objectives in particular areas and greater all round fiscal discipline than presently exists. It will also facilitate closer parliamentary scrutiny of proposed expenditure in this field. Senators may recall that this was an aspect to which the Auditor-General, in his special report on the Department of Aboriginal Affairs tabled in Parliament on 5 March 1974, directed particular attention.

The Territories

A total reduction of about $50m has been achieved on the forward estimates of the Department of the Capital Territory and the Department of the Northern Territory. The rapid growth in the size of the Public Service, particularly in Canberra, over recent years has now been arrested by the Government. As a consequence we have decided that so far as the National Capital Development Commission is concerned, there should be a marked slowing down in the substantial rate of increase there has been from year to year in the funds allocated for the development of Canberra.

The Commission’s activities in 1976-77 will therefore be directed towards essential works. Expenditure on land development, housing, educational and health facilities will proceed but some projects of lesser priority will be deferred. In the area of community services, we are taking steps, consistent with our objective of slowing down the rate of growth in capital expenditure on Canberra, to contain running costs on a variety of services. We will explore all avenues for improving the economics of the Australian Capital Territory transport undertaking, paying particular attention to reducing the deficit on the operation of the bus service.

In the housing area, the time has long since passed when there was justification for the Government assisting residents of the Australian

Capital Territory to obtain housing regardless of their means. In this and other fields there is no longer any need for incentives or preferential treatment for Australian Capital Territory residents in order to induce people to move to Canberra. Consistent with the assistance the Government provides to certain people in the States through the Home Builders Account arrangements, eligibility for Australian Capital Territory Commissioner for Housing loans will be subject to a means test similar to those applying in the States. These arrangements will produce a significant reduction in the funds to be made available in the forthcoming Budget for lending by the Commissioner for Housing in 1976-77. There will also be a review of the interest rates charged on existing loans to place them on a more realistic basis, where appropriate. A similarly oriented review will be made of the basis on which rents are charged for government housing in the Australian Capital Territory. Rental rebates will, however, continue to be available for pensioners and others in needy circumstances.

In the Northern Territory the Government provides all services of a State and local government kind. We will continue to have due regard to the special circumstances of the Territory in doing so. At the same time, however, we will be seeking to confine expenditure next financial year to minimum unavoidable levels of spending. To that end we propose to take various steps, including action to rationalise the operations of the Northern Territory Tourist Board and the transport undertaking and to defer certain capital projects sponsored by the Northern Territory Reserves Board and the Darwin and Alice Springs city corporations. The Government is also proposing to place government housing rentals in the Territory on a basis more comparable to the rest of Australia. In addition, it will be looking to the Northern Territory Legislative Assembly to co-operate in moves to increase the charges for the provision of electricity, water and sewerage, as well as drivers’ licence fees, motor vehicle registration fees and stamp duties, to realistic levels.

Charges for some Government services in the Northern Territory have not been increased for many years. The Government appreciates that there is an enormous task still remaining in rehousing the people of Darwin as a result of the havoc caused by Cyclone Tracy. Now that the process of reconstructing Darwin has gathered momentum, we shall be providing in 1976-77 a substantially increased allocation of funds to the

Darwin Reconstruction Commission, the Northern Territory Housing Commission and the Northern Territory Home Finance Trustee.

Industry

The Government is committed to the early restoration of a prosperous and expanding industrial sector. Several steps have been taken towards this end, including the introduction of generous investment allowances. What industry needs more than anything else* however, is clear evidence that the battle against inflation is being won. As with other spending programs, therefore, the Government’s programs of direct and indirect assistance to industry have been subjected to thorough scrutiny and many earlier estimates reduced to minimum amounts consistent with the Government’s commitments. Overall, the decisions taken in respect of programs administered by the Department of Overseas Trade, National Resources, Industry and Commerce and Primary Industry represent a reduction of about $80m on the relevant forward estimates.

The export market development grants scheme is proving to be more expensive than was intended when it was introduced. A very substantial increase in expenditure would be needed to pay all grant claims which, under the present scheme, might arise in 1976-77. Accordingly, we have decided that- although payments under the scheme in 1976-77 will increase appreciably in any case- some deferments of payments will be necessary. Meanwhile, the scheme is to be reviewed so as to reduce future grant payments to be incurred after 30 June 1 976. The Government has decided to terminate the overseas investment feasibility study scheme. Firms whose proposed studies have already been approved will remain eligible for reimbursement up to 12 months after the date of application.

Similarly, the scheme to encourage Australian investment overseas, by way of investment survey missions abroad, is to be terminated. Australian investment overseas will continue to be assisted by the availability of insurance against the risks of expropriation, exchange transfer and war damage from the Export Finance and Insurance Corporation. The future of the Consultancy Services Feasibility Study Fund is to be reviewed by the Government; in the meanwhile expenditure is to be limited to existing commitments. In the field of tourism, the amount to be provided for the Australian Tourist Commission in 1976-77 will be limited to $3m. Discussions will be held with industry groups and State governments with a view to their matching dollar for dollar the Commonwealth’s contribution to the Commission, up to S1.5m, in which case the amount provided to the Commission from the Commonwealth’s Budget would be $1.5m. The grants scheme for low-cost accommodation has been terminated.

The Government will investigate ways in which the New South Wales and Victorian Governments might share in financing assets required for the operation and maintenance of the Snowy Mountains Scheme. In the meantime the Authority will not enter into commitments except in respect of assets which clearly form part of the permanent works of the Scheme. The National Pipeline Authority will not enter into any commitment with respect to the country laterals of the Moomba-Sydney natural gas pipeline until the Government has reviewed the matter in the context of the 1976-77 Budget. There will be no provision in 1976-77 for planning and design of new pipelines by the Authority.

The Government has already announced that, in its view, there is no justification whatever for the Australian Atomic Energy Commission to continue field exploration for uranium. The Commission’s withdrawal from this activity is to be expedited. Pending the outcome of certain reviews, expenditure under some primary industry programs in 1976-77 is expected to be less than in 1975-76. 1 should also mention here that if current expectations regarding the wool market are realised, the Budget next year could benefit substantially from the repayment of advances made to the Australian Wool Corporation from the Budget in 1974-75 and 1975-76.

Science

Budget outlays on research activities through the Commonwealth Scientific and Industrial Research Organisation and other bodiesincluding the provision for research grants under the aegis of the Australian Research Grants Committee- in 1976-77 are to be held to broadly the same real levels of spending as in 1975-76. This nonetheless represents a reduction of about $20m on the projected levels of expenditure for these programs. The Government has also decided that an independent external inquiry be conducted into the operation of CSIRO. The inquiry is to cover the general philosophy, organisation and management structure of the Organisation, the efficacy of its research programs and its revenue-raising potential.

Child Care and the Arts

The forward estimates for child care, the arts, and other programs administered by the Department of the Prime Minister and Cabinet have been reduced by about $15m. The Government has decided that about $73m should be appropriated in 1976-77 in respect of the pre-school and child care program. This compares with an estimated outlay of $65m under this program in 1975-76. Consideration is being given to changes in the program designed to ensure greater emphasis on child care to children of needy families.

We propose a program of assistance to the arts in 1976-77, under the Australian Council, of $ 1 9.4m exclusive of administrative costs. Expenditure on this program will, as a result, be marginally below the presently estimatel level for 1975- 76. The program of acquisitions of works of art by the Australian National Gallery is to be increased, from $2.6m in the current year to $3.5min 1976-77.

Attorney-General’s Department

Among other programs the Cabinet reviewed the family law and legal aid programs administered by the Attorney-General. The comparatively new program of family law will be continued with a budget of $ 10.4m for 1976-77. Within the funds to be made available, the Institute of Family Studies is to be established during the course of 1976-77. The legal aid program is currently under review between the AttorneyGeneral (Mr Ellicott) and the States and the Attorney-General will report to the Government when negotiations are completed. The Government’s objective will be to reach co-operative arrangements with the States designed to maintain the provision of legal aid services to the community at a reasonable cost to the Commonwealth.

Health

The decisions we have taken on health programs- other than Medibank, which I will come to shortly- represent an overall reduction of more than$100m on the forward estimates. Aggregate spending on these programs in 1976- 77 is estimated, however, to be slightly higher in money terms than in 1975-76. In line with the undertaking given by our predecessors, an amount of $ 108m- about the same provision as in 1975-76- will be made available to the States in 1976-77 as capital assistance for the development of public hospitals and related health care facilities.

Grants to the States in 1976-77 for the capital and operational costs of school dental clinics and of training facilities for dental therapists will be sufficient to meet all existing commitments. These are currently estimated at $25m, which is about the same as the present estimate of expenditure under the scheme in 1975-76. Grants to the States, local government authorities and other eligible organisations in 1976-77 under the community health program will maintain already approved services and facilities at a viable level. An amount currently estimated at $70m will be allocated in 1976-77, compared with estimated expenditure of $58m this year.

The Budget provision for expenditure on medical research in 1976-77 will be increased to $9m, which should enable some increase on current real levels of activity. Because of the high incidence of tuberculosis in the early post-war period, the Commonwealth decided in 1948 to launch a national anti-tuberculosis campaign under which the State governments are reimbursed capital and maintenance expenditure incurred by them in the diagnosis and treatment of tuberculosis. The campaign has been highly successful and tuberculosis is no longer a national problem. Accordingly, the Commonwealth has decided to give the States 6 months notice that it will cease the special financing arrangements under the Tuberculosis Act.

Pensions

In the 1973-74 Budget the former Government announced that all pensions paid under the social security legislation to people of pensionable age would be subject to tax. Equivalent pensions paid under the repatriation legislation were also made taxable but only in respect of people of age pension age. This situation is anomalous. For example, many younger recipients of Service pensions are at least as well able to bear tax upon their pensions as pensioners of age pension age. Accordingly the Government has decided that Service pensioners who are less than age pension age. other than those who have been granted a pension on the grounds of invalidity, should also have their pensions subject to tax.

The Government has also reviewed the taxation arrangements which relate to unemployment and sickness benefits, widows’ pensions and supporting mothers’ benefit. Clearly, in many cases the total incomes of the recipients of these benefits would not be such as to bring them above the minimum taxation threshold. In a sizeable proportion of cases, however, this is not so: thus a seasonal worker, for example, might be unemployed (and receive unemployment benefit) for some part of the year even though his income for the balance of the year puts him well into the taxable area for the year as a whole. Similar situations occur in the case of persons in receipt of widows’ pensions and supporting mothers’ benefit.

The Government has decided, therefore, to subject unemployment and sickness benefits to taxation and to subject widows’ pension and supporting mothers’ benefits to taxation on the same basis as is currently applicable to pensions payable to persons of age pension age. These decisions will apply in respect of benefit and pension payments made on or after 1 July 1976. The Commissioner of Taxation will not require PA YE deductions from pensions and mothers benefits, unless the recipient wants them made.

In practice, no such deductions will be made from unemployment and sickness benefits if the recipient lodges the usual rebate declaration. Tax will, in those cases where it is payable, thus generally be collected at the end of the year.

Repatriation

The Government has decided that eligible veterans and their dependants are, in general, to be classified as Medibank hospital patients when admitted to non-repatriation hospitals. The Repatriation Commission will, however, still have the discretion to admit veterans as private patients to ensure that the Repatriation doctor can attend them.

Social Security

I have already mentioned the steps being taken to tax widows’ pensions and supporting mothers’ benefits on the same basis as is currently applicable to pensions payable to persons of age pension age. No changes are to be made in existing arrangements relating to aged pensions and allowances and to invalid pensions and sheltered employment allowances.

The Government has decided to introduce a 3 year program costing $225m to eliminate the current backlog of applications from organisations seeking subsidies for the building of aged persons’ accommodation. For budgetary reasons, however, it is necessary to limit the cash provision in 1976-77 to $45m; it is intended that the balance be provided over the following 2 years. Special arrangements are to be made in this area which will enable organisations to commence early construction of approved projects with their own funds and /or bridging finance on the understanding that the Government’s contribution will be forthcoming at a specified date over the next 3 years. The Minister will provide further details.

I should also mention the Australian Assistance Plan, which was introduced as a 3 year pilot scheme in 1973. The Minister for Social Security is meeting with the State Ministers in Darwin tomorrow in order to discuss future arrangements for this program.

Immigration

The Government acknowledges the favourable impact which immigration has had on Australia’s economic and cultural developments. Consistent with this view the Government has decided on a target of 70 000 persons for the immigration program for 1976-77, compared with the estimated intake of 50 000 in 1975-76. Among other things, this expanded program will facilitate family reunions. Attention will continue to be given to the occupational qualifications of prospective migrants so that newly arriving migrants do not face the prospect of unemployment or take jobs which otherwise would be available to unemployed members of the existing workforce.

The total program provides for 30 000 persons to be assisted with travel costs under the assisted passages scheme. To help offset the cost of the assisted passages, we have decided to increase the contributions from migrants receiving assistance under the scheme by $50 to $200 in the case of single migrants, and by $150 to $300 in the case of family units.

Education

I turn now to education. As in many other areas, it is not possible to provide for the very rapid expenditure increases implicit in the forward estimates for education and, at the same time, achieve the requisite overall degree of restraint in public spending. The forward estimates for the programs examined have, in fact, been reduced by about $80m. But in educationunlike in many other areas- we will be providing for significant real growth in spending next year. We are also introducing new rolling program arrangements to provide for greater continuity in planning by the various education commissions.

Liberal and National Country Party governments have always given a very high priority to education. They established the Universities Commission and the Commission on Advanced Education. They also initiated substantial programs of financial support to the States for both technical education and schools. That support for schools encompassed financial assistance for both government and non-government schools. One of our first actions, as the caretaker Government last November, was to confirm that we would support the programs of assistance announced by the previous Government for the calendar year 1976 for universities, colleges of advanced education, technical and further education and schools. Now, as part of its review of prospective Budget outlays in 1976-77, the Government has been considering the levels of financial assistance that it might provide in 1 977 through the Universities Commission, the Commission on Advanced Education, the Technical and Further Education Commission and the Schools Commission.

The Government has decided on significant further growth in real levels of expenditure in 1 977 at each of the 4 levels of education:

For universities, a 2 per cent growth in real terms, based on the program approved by the previous Government for 1976, plus an additional $2m for capital expenditure.

For colleges of advanced education, a 5 per cent growth in real terms over the program approved for 1976.

For technical and further education institutions, a 7.5 per cent growth in real terms over the program approved for 1 976.

For schools, a 2 per cent growth in real terms over the program approved for 1976.

As a result of these decisions, the levels of expenditure on the programs of the education commissions in 1976-77, expressed at December 1975 price levels, will be:

The total of $ 1,569m represents an overall increase of roughly 4 per cent in real terms compared with 1975-76. The funds to be provided to the tertiary institutions next year will accommodate some increase in new enrolments at these institutions in 1 977 over the estimated 1 976 level of 100 700. We will also provide $500,000 in 1976-77 for a start on the proposed Maritime College in Tasmania.

The Government has decided to replace the existing cost supplementation provisions by less automatic arrangements which will take account of unavoidable increases in wages and other costs; our aim is thereby to encourage greater cost-consciousness and tighter control of expenditure within the education programs. As I indicated, new 3 year rolling program arrangements to replace the fixed triennial funding arrangements are to be introduced from the beginning of 1977. These new arrangements will provide greater budgetary flexibility for the Commonwealth while providing a proper planning framework for the commissions which, hopefully, will assist in avoiding the stop-start situation of recent years. In this latter connection the commissions are to be given minimum figures, for planning guidance only, for the second and third years of the initial rolling program, that is, 1978 and 1979.

This planning guidance is:

For universities, colleges and schools, 2 per cent growth in real terms per annum; for technical and further education institutions, 5 per cent growth in real terms per annum.

The Government has also reviewed its various measures of assistance to students, particularly those in universities and colleges of advanced education. We have decided to restrict the number of new awards in 1977 under the post graduate awards scheme to 800, a reduction of 100 from the 1976 figure. We have decided also to phase out the means-test-free scheme of special pre-school teacher education awards. Existing scholars will be able to complete their courses under the present scheme, but commencing in 1977 new entrants to pre-school teacher education courses will apply for assistance under the means tested tertiary education assistance scheme in the ordinary way. With a view to lightening somewhat the burden which education programs are now placing upon the Budget, it has been decided to re-introduce tuition fees for students taking second and higher degrees. There is no reason why the general taxpayer should be expected to finance second and subsequent degrees of first degree holders. The question of imposing tuition fees for foreign students is also to be considered.

Local Government

Commonwealth funds are provided to local government through a variety of programs, including general revenue assistance and specificpurpose assistance for roads, sewerage works and so on. Some of the decisions indicated earlier could adversely affect the funds available to local government for some of these specific activities in 1976-77.

We have decided to make $140m available to local government in 1976-77 in untied general revenue assistance. That amount represents an increase of 75 per cent on the general purpose assistance provided to local government in 1975-76 and should be seen as a major contribution towards making local government a genuine partner in our federal system. The amount of $ 1 40m will constitute the base for the calculation of assistance in future years in accordance with arrangements being negotiated with the States.

Foreign Aid

Budgetary difficulties notwithstanding, the Government has decided on a 14 per cent increase in Australia’s total overseas aid program in 1976-77.

Defence

The Government has recognised that defence expenditure has been unduly constrained in recent years. Important capital equipment items have been deferred, spares and stocks have run down and there have been restrictions on exercise activities, which are the essence of and morale of an effective defence force. To overcome these deficiencies, we have approved the planning and development of a defence program to provide for a marked increase in expenditure on defence during the next 5 years, 1976-1981, particularly on capital equipment and Service activities. Defence cannot be totally immune from the general budgetary restraints, however, and some reduction has been made from the forward estimate. Expenditure in real terms is estimated to increase significantly in 1976-77, with larger increases planned for later in the period to coincide with the long lead times for new major capital equipments.

That concludes the summary of major reductions which have been made from the 1976-77 forward estimates submitted by departments in February. These and other decisions responsible for the overall reduction of $2,600m in expenditures foreshadowed in the original forward estimates will be reflected in the Budget documents.

Medibank

I now come to Medibank. The cost of Medibank to the Commonwealth in 1975-76 is estimated at about $ 1,400m, or about 6.4 per cent of total Budget outlays. If nothing is done, the cost next year would turn out to be of the order of $2,000m. As these figures indicate, Medibank is a very expensive program. Moreover, the program is quite open-ended and there is every likelihood that subsequent years would bring even larger increases.

It was against this background that the Government announced on 13 January that a Medibank Review Committee under the chairmanship of Mr Austin Holmes was to be established to review the operation of Medibank. The Committee has reported to the Minister and we have reviewed the scheme in the light of his recommendations. The Government is firmly committed to the concept of Medibank. We shall retain Medibank and maintain the fundamental principle of universal hospital and medical insurance coverage for all Australians. There will be no means test involved.

However, our review has confirmed that Medibank in its present form has serious weaknesses. It places on the State and Federal governments virtually the whole responsibility Ibr financing the basic level of hospital and medical care, not only for those who need assistance with their health care costs, but also for those who can afford to pay for themselves. It provides few incentives to economy in the use of health services, whether on the part of users of those services or on the part of the medical profession who, as providers, have a key role in determining overall costs.

The Government has therefore decided to make a number of modifications to Medibank. While retaining the principle of universal coverage, protecting the position of lower income earners and widening the choices available in the field of health care, these changes will also provide immediate savings to the Budget. People who wish to receive the benefits currently provided by Medibank will in future be required to contribute on a graduated scale by paying either a levy of 2.5 per cent on taxable income or a premium direct to Medibank.

Linking the levy to taxable income in this way ensures that those on the lowest incomes will pay no levy and those on moderate incomes will pay the levy only in accordance with their means. All of them will, however, remain entitled to all the benefits of Medibank, that is, treatment and accommodation in public hospitals by doctors engaged by the hospital, and benefits at their present levels for medical expenses incurred outside of hospitals.

It will also be possible to purchase Medibank coverage for these benefits by the payment of a premium. This in effect sets a ceiling on the levy payable by those on higher incomes who wish to stay with the basic high quality health care provided by Medibank. It is in fact the simplest and best means of setting that ceiling. Without it those on higher incomes who wished to remain in Medibank could be required to pay a levy in excess of the benefits they would receive. Such a system would force people on higher incomes out of Medibank. That is not what the Government proposes.

The Government believes that all should have access to Medibank; the opportunity for higher income earners to pay a premium to remain in Medibank will make this possible. The premium will be set by the Minister for Health and the Treasurer in consultation. Furthermore the Government believes that, to the greatest extent possible, people should have the choice of access to private insurance for hospital and medical benefits as an alternative to Medibank. Accordingly, taxpayers who wish to insure themselves and their dependants privately for approved hospital and medical benefits will be exempt from payment of the levy. The minimum approved level of private insurance will provide coverage for shared or intermediate ward accommodation in public hospitals, with treatment by private doctors, and benefits for medical expenses no less than those provided by Medibank. The hospital benefits under an approved private insurance package can also be applied towards the cost of accommodation in private hospitals. To widen choice further, people who pay the levy, but wish to have private patient status in hospitals, may purchase private insurance for their hospital cover but continue to receive their medical benefits from Medibank.

The new arrangements will ensure that those in the community with higher incomes will pay a major proportion of the insurance cost of their health expenditures. Those choosing to pay the levy will do so because it costs them less than it would to take private insurance or pay the full premium to Medibank. In this way they will receive subsidies from Consolidated Revenue, additional to the amounts they have contributed through their levy payments, towards the total cost of their health care. These subsidies will, as at present, be financed by all in proportion to the overall taxes they pay. .The changes I have described will also provide incentives to the medical profession and private insurers to constrain costs by establishing competition between the public and private sectors. Competition between private insurers and Medibank should maintain both the quality of services and their cost of efficiency.

For virtually the first time in Australia, the medical profession will have an incentive to participate in schemes which help curtail unnecessary usage and expenditure in order to maintain the long-term viability of private practice. Since purchase of approved hospital and medical insurance packages will provide exemption from the levy, existing tax concessions for health insurance will be withdrawn. Bulk billing will be retained; however, doctors who bulk biff will, in future, be allowed to collect a patient moiety so long as the total charge does not exceed the scheduled fee. So that pensioners will not be disadvantaged under these arrangements, doctors will be asked to accept the Commonwealth rebate in full settlement of the accounts of those receiving pensioner health benefits. Full details of these and other associated changes resulting from the Government’s review of Medibank will be announced by the Minister for Health. Relevant legislation will be introduced immediately so that the changes can take effect from 1 October 1976. On that basis it is estimated that in a full year total savings to the Budget would amount to about $810m, of which just over half would represent reductions in budgetary expenditures and the remainder the yield from the levy. Because of the unavoidable interval before the scheme can be brought into operation on 1 October, and given other lags in payments and receipts, total savings to the Budget in 1976-77 are estimated to be in the order of $450m.

Assistance to Families

The Government is also proposing a major reform of present arrangements for assistance to families, so as to direct much more support to the families in most need. Here too the decisions we have reached are based on thorough study over an extended period involving bodies both inside and outside the Government. At present, assistance towards meeting expenditure upon children’s needs is provided in 2 main ways- by child endowment and by taxation rebates for dependent children. At existing rates, the cost to the Budget of assistance through the taxation system is about 3 times as great as the direct expenditure on child endowment, which is relatively small and has been seriously eroded by inflation over the years. These arrangements discriminate against families in which the income of the main or sole income-earner falls short of the minimum taxation threshold. Such families are unable to take advantage of the taxation rebates for children which are available to the great majority of families. A system under which low-income families are denied the main form of assistance to families is clearly inequitable.

The Government has therefore decided on a new system which is fairer and simpler. In essence, it involves abolishing the taxation allowances for dependent children, and disbursing the resultant additional revenue in the form of large increases in child endowment. A reform along these lines was advocated as a high priority by the Commission of Inquiry into Poverty, under Professor Henderson, in its first main report tabled in the Parliament in August 1975. The Asprey Taxation Review Committee also supported such a change.

The details of the new arrangements will be announced by the Minister for Social Security (Senator Guilfoyle), but in brief the main features are: The present taxation rebates for children will be abolished as from the end of this financial year; the existing arrangements for payment of child endowment will be maintained but at substantially increased rates; the new rates of child endowment, compared with the present rates, are as shown in a table which I ask leave to have incorporated in Hansard.

The PRESIDENT:

-Is leave granted?

Senator Keeffe:

– No.

The PRESIDENT:

-Leave is not granted.

Senator Georges:

– Read them out.

Senator COTTON:
LP

-I will be quite delighted to read the new rates. The night is young and I reads:

The broad effect of these changes will be to increase the weekly level of child endowment paid to families by between $3 and $4 per child. As the weekly equivalent of the present maximum taxation rebate is $3.85 in respect of most children, the overall position of families able to take full advantage of these rebates at present will not be greatly changed. There are, however, about 800 000 children in low income families which pay little or no taxation. These include the children of widow and invalid pensioners, of workers close to the minimum wage or in intermittent employment, of self-employed people unable to earn an adequate income, and of many Aborigines, recently arrived migrants and other disadvantaged groups. The new system will provide greatly increased assistance to 300 000 such families. Those families and the children of those families I am sure will remember tonight for 2 particular reasons- our attitude and that of the Australian Labor Party.

Another effect of the new system will be to bring about some redistribution of income within families. Child endowment will continue to be paid, as it always has been, usually to the mother. At the same time, of course, the take home pay of many fathers will be reduced as a result of the withdrawal of the taxation rebates. The full year cost of taxation rebates for dependent children and students, had they been indexed in 1976-77, together with the cost of the present child endowment scheme, would have amounted to about $l.,025m.

The annual cost of the new family allowances scheme in a full year is almost exactly the same. There will thus be no net full year cost to the Budget arising from the new system, other than the cost which would otherwise have been incurred in indexing rebates for dependent children. For a number of technical reasons associated with the changed arrangements, there will however be a net cost to the Budget of the order of $100m in 1976-77. The Government believes that the new scheme is a most important step towards the alleviation of poverty in Australia, and that it will be readily accepted as more efficient and more equitable than present arrangements.

Tax Indexation

After taking into account the totality of our other decisions, the Government has judged it feasible and appropriate to proceed now to implement its commitment to personal income tax indexation. Honourable senators will recall that the notion of personal tax indexation was raised in the report of the Asprey Committee and that the Mathews Committee dealt at length with the matter in its report on inflation and taxation. The Government undertook at the last election to introduce personal tax indexation within its current term of office.

In the recent national wage case hearings, counsel for the Commonwealth stated, under our authority, that the Government intended to substantially implement personal tax indexation this year. It was made clear at that time that this was being done both in fulfilment of our objective of getting the Government’s hands out of taxpayers’ pockets, and for wage policy reasons. Individuals, rightly in our view, attach considerable importance to their own command over their incomes and their ability so far as possible to spend those incomes as they see fit.

Under conditions of inflation, taxpayers whose money incomes are rising on that account alone find themselves being pushed into higher and higher tax brackets under the progressive income tax scale. As a result, the relative burden of taxation upon them is increasing even though, in terms of what their increasing money incomes would buy, they are no better off than they were before. In these circumstances it is only governments which become better off. There is then a standing temptation to governments to launch upon new or increased speeding programs whereby they generously give back to taxpayers the revenues- or some of them- they have taken from them.

What we aim to do through indexing the major part of the personal income tax system is to ensure that the real burden of taxation for any taxpayer will not increase unless his real income increases. Let me illustrate by an example. Take a person who had a taxable income of $ 10,000 in 1975-76. In this case the marginal rate of tax for 1975-76 is 35c in the dollar on the amount of income between $5,000 and $ 10,000. If the same person had an income of $11,300 in 1976-77, that is, an increase of 1 3 per cent, the margin rate on the extra $1,300 would, without indexation, be 45c in the dollar. With indexation the rate on the extra $ 1 ,300 will stay at 35c thus reducing tax on it by $130. Not only that, the taxpayer will make savings from indexation of the brackets lower down the scale. That, together with the similar effects which flow from indexing the levels of the various tax rebates in the system, are what indexation is mainly about.

I can now say that legislation will be introduced tonight to provide for full personal tax indexation from 1 July 1976. The income tax rates scale will be indexed and so also will the rebates for a dependent spouse or a housekeeper, the sole parent rebate and the $540 basic rebate; because of our decision in relation to the new family allowances, the question of indexing the existing children’s rebates will not now arise. In indexing the system each financial year we shall allow for price movements, other than those due to increases in the level of indirect taxes, up to the March quarter of the financial year just ending. So far as 1976-77 is concerned, price movements up to the end of the March quarter of 1 976 are already known. Adjusted for indirect taxes, the average level of the consumer price index in the year ended 31 March 1976 was 13 per cent higher than in the preceding year.

The index to be applied will therefore be 13 per cent. Each step in the marginal rate scale will begin and end at incomes 1 3 per cent higher than at present. In other words, the steps will be widened and lower rates will apply up to higher money incomes than at present. The various categories of dependants’ rebates will also become higher than at present. On a 13 per cent indexation basis alone, the rebate for a dependent spouse, daughter-housekeeper or a housekeeper would be increased from $400 to $452 and the sole parent rebate from $200 to $226. We have however decided, as a separate matter, to increase the levels of these rebates to $500 and $350 respectively; the remaining dependant rebates will become 13 per cent higher than at present. Finally, the $540 basic rebate will also be increased to $610. These changes will achieve the objective, noted earlier, of preventing the rise in effective tax rates which would otherwise have come about as a result of inflation of 13 percent. The new arrangements for PAYE will be reflected in the instalment schedules for salaries and wages paid on or after 1 July 1976.

The total cost to the Budget of indexing in this manner, including the cost of raising the spouse, etc., and sole parent rebates, is estimated to be $ 1,050m in 1976-77 and $1,2 10m in a full year. Before I leave the taxation area I should also refer to the area of corporate taxationspecifically, to proposals for a cost of stock valuation adjustment, and a depreciation valuation adjustment, which in our policy speech we undertook to implement within 3 years. By contrast with the relative simplicity of the personal income tax indexation proposals, both these measures are of great technical complexity so far as the taxation law and administration are concerned. We have them understudy.

Conclusion

I mentioned at the outset that, on the basis of the forward estimates originally before us, we faced a deficit in 1976-77 then put at $4,800m. The reductions of $2,600m in those estimates now achieved or in prospect have now radically improved that position. Our decisions on Medibank will improve it substantially further, particularly on the full year basis. These measures make it not only possible but also desirable to introduce the new family allowances scheme and our tax indexation measures in 1976-77. The Government is confident that these new proposals can be encompassed within a responsible Budget in 3 months’ time. The process of putting fiscal policy back to rights has to be a continuing one.

The Budget will be the next step in that continuing process. Normal preparations for it are now under way. In fact departments have now submitted to the Treasury their formal expenditure bids for next year taking account of the decisions we have taken. These formal bids, which as senators know are quite distinct from the forward estimates processes, represent the first step in the normal budgetary timetable which culminates in the Budget Cabinet in July and the bringing down of the Budget in August. These formal bids will now be subjected, initially by the Treasury and eventually by the Budget Cabinet, to a thorough-going review against the broad criterion of containing government spending while at the same time having regard to generally accepted notions of social justice.

In the months ahead the Government will also be seeking to trim down further the bureaucratic empire which has been built up over recent years. In this the Government will be receiving advice from a number of committees which have still to report to us. In particular, we have begun to receive some elements of the report of the Administrative Review Committee which was set up under Sir Henry Bland last December, and we look forward to receiving the remainder in the period ahead. When finally received, Sir Henry’s report, taken in conjunction with the related report of the Royal Commission under Dr Coombs, will provide us with a further basis for review. Similarly we look forward to receiving shortly, and thereafter acting upon, the report of the committee, under the aegis of Mr David Hay, on the Review of Delivery of Services financed by the Department of Aboriginal Affairs. In these and other ways we shall press on with winding down a grossly excessive public sector.

As I hope I have made clear, that task is not however to be accomplished within 6 months, or within the compass of a single Budget. The important point is that steady progress is being made. The Senate, and the country, can be confident that that progress will continue. I commend this statement to the Senate. I ask for leave to move a motion that the Senate take note of the statement.

The PRESIDENT:

-Is leave granted? There being no objection, leave is granted.

Senator COTTON:
LP

-I move.

That the Senate take note of the statement.

Debate (on motion by Senator Wriedt) adjourned.

page 1811

GUIDELINES FOR TRIENNIAL

page 1811

QUESTION

REPORTS OF EDUCATION COMMISSIONS AND OTHER MEASURES

Ministerial Statement

Senator CARRICK:
New South WalesMinister for Education · LP

– I ask for leave to make a statement relating to the guidelines for triennial reports of education commissions and other measures.

The PRESIDENT:

-Is leave granted? There being no objection, leave is granted.

Senator CARRICK:

-I thank the Senate. The statement is as follows:

Guidelines

As indicated by the Treasurer (Mr Lynch), the Government has decided upon guidelines for the triennial programs of the education commissions for the period 1 977-79 including firm appropriations for the first year of the programs. The orderly development of education in Australia was disrupted by the previous Government’s decision to depart, for the 1976 calendar year, from triennial programming. In reinstating triennial programming in education, the Government has decided to modify the earlier system of fixed triennial funding in the interests of preserving overall Budget flexibility and enabling education programs to respond more quickly to changing community needs. The new form of triennial programming will be on a rolling basis; as each year is completed, plans for the remaining years of the triennium are reviewed and up-dated and initial proposals made for a new third year. Within this context there will be provision for longer term reviews.

Within the physical and financial guidelines provided by the Government, each Commission is being asked to submit detailed recommendations for the first year of the triennium and to make planning proposals for the second and third years on the basis of certain minimum annual rates of growth in expenditure in real terms. In this way, there will by systematic and rational forward planning in education which should ensure that the financial recommendations of the education Commissions are framed in accordance with the prevailing economic climate and the Government’s expenditure priorities.

The guidelines provide for a total expenditure on the programs administerd by the educaion Commissions of $l,537m in the 1977 calendar year (expressed in December 1975 prices). The amount for each Commission in 1 977 compared with 1976 is:

This represents an increase of $47 m or 3.2 per cent in real terms in 1977. In financial year terms the cash flow in 1976-77 will be $ 1,569m representing an increase of 4.2 per cent. The Government has decided also to replace the existing cost supplementation arrangements by less automatic provisions for unavoidable increases in costs. The Commissions have been asked to submit their reports to the Government by mid-July so that legislation to reflect the programs approved by the Government for 1977 can be introduced during the coming Budget session.

Other Measures

As part of its review, the Government has considered some other education programs.

In 1977 the Government will make available 800 new postgraduate awards compared with 900 this year. This will include for the first time a small allocation for the National School of Business Administration at the University of New South Wales. The estimated saving in 1976-77 is $140,000 and in the full year 1977 $350,000.

The special scheme of pre-school teacher education allowances is to be phased out. These awards carry the same benefits as are available under the tertiary education assistance scheme but are not subject to a means test. The Government has decided that students preparing to become pre-school teachers should in future be treated in the same way as other tertiary students and make application for assistance under the tertiary education assistance scheme. Commencing in 1977 there will be no new awards offered under the pre-school scheme. However, students who now have special awards and will be continuing their courses in 1977 and beyond will retain their eligibility for benefits without means test. The estimated savings on the pre-school teacher education allowances scheme is $500,000 in 1976-77 and $970,000 in the full year 1977.

A close examination is being made of the general conditions of eligibility for the tertiary education assistance scheme to see how, consistent with the maintenance of the general principles of the scheme, those conditions might be modified to achieve savings.

From the beginning of 1 977, the Government has decided to reintroduce tuition fees for students taking second and higher degrees apart from recognised combined courses which include, for example Arts /Law, and first degrees plus postgraduate professional diplomas. The Government considers that students should reasonably be asked to pay tuition fees for courses taken after they have obtained their full basic qualifications. We will need to discuss the application of this decision with the States and the institutions.

The payment of tuition fees by foreign students temporarily resident in Australia while attending post-secondary institutions is also to be considered. Since foreign students are not taxpayers, the payment of fees would represent a comparatively small contribution to the cost of their education when it is appreciated that they already receive a substantial indirect benefit in terms of the Government’s support of the institutions.

In the field of migrant education, expenditure under the adult migrant education program in 1976-77 will be limited to the amount needed to maintain the present numbers of teachers and of migrants enrolled in courses. For full time intensive English language courses and for preembarkation and shipboard activities, expenditure in 1976-77 will be at the same level as in 1975-76, with appropriate additional provision for unavoidable cost increases. Taken together, expenditure on these 3 migrant education programs will be approximately $9m in 1976-77. It should be noted that the bulk of the expenditure on child migrant education is now covered in the programs of the Schools Commission. From its review of all the programs referred to above, the Government expects to achieve estimated savings of approximately $80m in 1 976-77 over prospective outlays in forward estimates. I emphasise will be further growth in the real level of Commonwealth expenditure on education during 1976-77.

Having outlined the decisions the Government has taken about education expenditure, I turn now to provide details of the guidelines I have transmitted today to the Chairmen of the

Universities Commission, the Commission on Advanced Education, the Technical and Further Education Commission and the Schools Commission. These guidelines set down the framework within which each Commission is to prepare programs for the triennium 1977 to 1979, with particular reference to expenditure in 1 977.

page 1813

TERTIARY EDUCATION COMMISSIONS

Guidelines

The tertiary Commissions should prepare their recommendations for the 1977-79 triennium on the following basis.

Enrolments

The Government expects the universities to maintain their intake of students over the next 3 years at a level comparable to that in 1976. The colleges of advanced education should increase their intake by about 10 per cent in 1977 and in subsequent years at rates consistent with the indicative rates of growth in expenditure set out below.

Expenditure in 1977

In deciding upon the level of funding for capital expenditure, the Government wishes the Commission on Advanced Education to make provision for the construction of buildings to accommodate the increased enrolments at existing standards, together with a modest program of replacement and refurbishing where this is considered essential. The Universities Commission should defer all but essential construction, upgrading and replacement of buildings for 1977. Apart from the Australian Maritime College, for which $0.5 m is being separately provided in 1976-77, no new institutions are to be established.

In view of the questions concerning the relationship between supply and demand in the school teaching force, in the medium and longer term, the Government thinks it appropriate that, pending further analysis of the situation, the present total level of enrolments in teacher education courses should be regarded as a maximum. Consequently, any proposals for substantial capital expenditure on facilities for teacher education should be subjected to rigorous justification. In formulating their recommendations, the two tertiary Commissions and the Technical and Further Education Commission are asked to co-operate in examining the overall provision of opportunities for post-school education, including the greater rationalisation of the use of resources and more extensive use of facilities throughout the calendar year. The tertiary Commissions should also examine in a rigorous way any proposals put to them for the lengthening of established courses of instruction. The Government envisages a total level of expenditure in the 1977 calendar year (in December 1975 cost levels) of:

For universities these amounts represent a 2 per cent growth in real terms over 1976, plus an additional $2m for capital expenditure, representing an additional $ 13m in all. For colleges of advanced education, the amounts represent a 5 per cent growth in real terms over 1976, resulting in an additional $ 19m. The Commission on Advanced Education may exercise some discretion in recommending the final allocation between operating and capital expenditure provided it is satisfied there would be an overall improvement in the provision of advanced education. The Government has decided also to replace the existing cost supplementation arrangements by less automatic provisions for unavoidable increases in costs.

Expenditure in 1978 and 1979

For the second and third years of the triennium, each Commission should plan on the basis of a minimum growth of 2 per cent in real terms on the level of expenditure in the preceding year. Subsequently each Commission will review annually the year just completed, and, on the basis of further guidelines from the Government, update plans for each of the subsequent 2 years as well as making initial proposals for a new third year. Within this context there will be provision for longer term reviews.

page 1813

TECHNICAL AND FURTHER EDUCATION COMMISSION

Guidelines

The Government is concerned to ensure further growth in its programs in technical and further education on the basis that the States continue to discharge their own financial responsibilities in this field.

Expenditure in 1977

The Government asks the Technical and Further Education Commission to take account of projected increases in enrolments over the triennium in formulating its detailed recommendations for both recurrent and capital expenditure.

The Commission should co-operate with the tertiary commissions in examining the overall provision of opportunities for post-school education including the greater rationalisation of the use of resources and the more extensive use of facilities throughout the calendar year. The Commission should also examine the possibility of increasing technical training by greater use of unused capacity in factories of the metal trades group of industries and in Commonwealth undertakings.

The Government has provided $39m recurrent and $31m capital totalling $70m in December 1975 prices for the programs of the Commission in the States in 1977. These amounts represent a 7.5 per cent growth in real terms over 1976, resulting in an additional $5m. The Commission may exercise some discretion in recommending the final allocation between recurrent and capital expenditures provided it is satisfied there would be an overall improvement in the provision of technical and further education. The Government has decided also to replace the existing cost supplementation arrangements by less automatic provisions for unavoidable increases in costs.

Expenditure in 1978 and 1979

For the second and third years of the triennium, the Commission should plan on the basis of a minimum growth of 5 per cent in real terms on the levels of expenditure in the preceding year.

The Commission will review annually the year just completed, and, on the basis of further guidelines from the Government, up-date plans for each of the subsequent 2 years as well as making initial proposals for a new third year. Within this context there will be provision for longer term reviews.

page 1814

SCHOOLS COMMISSION

Guidelines

Within the financial limits referred to below, the Government asks the Schools Commission to base its recommendations on the maintenance of existing standards in government and nongovernment schools. The Commission should have due regard to the maintenance of effort on recurrent and capital expenditure by the States and non-government schools, and to the effective and economic use of resources.

Expenditure in 1977

In drawing up its recommendations the Government expects that the approach just referred to would make provision for the continuation of special purpose programs such as those for handicapped children, for migrants and for disadvantaged schools.

In the case of non-government schools the Government asks the Commission to have regard to the additional costs arising from the replacement with lay teachers of teachers who are members of religious orders. However the Government would expect that the number of religious teachers in the schools would be maintained at as high a level as possible. The Commission should also have regard to the problems of those non-government schools which are unable to increase their fee income in line with rising costs.

The Government requests the Commission to include in its considerations the problems of educating children in country areas, including the difficulties facing non-government boarding schools.

For capital expenditure, the Government asks the Commission to recommend a program directed primarily towards the provision of additional places in schools to assist with increased enrolments and shifts in population, and for the provision of special purpose facilities in schools currently without them. The program should also take account of the need for replacement and upgrading of sub-standard facilities.

The Government asks the Commission to give priority to its investigations into efficiency and economy in school construction in both Government and non-government schools.

The Government has provided a total of $373m recurrent and $135m capital totalling $508m in December 1975 prices for the programs of the Commission in the States during 1977. These amounts represent a 2 per cent growth in real terms over 1976, resulting in an additional $10m. The Commission may exercise some discretion in recommending the final allocation between recurrent and capital expenditures provided it is satisfied that there would be an overall improvement in the provision of education in schools. The Government has decided also to replace the existing cost supplementation arrangements by less automatic provisions for unavoidable increases in costs.

Expenditure in 1978 and 1979

For the second and third years of the triennium, the Commission should plan on the basis of a minimum growth in expenditure of 2 per cent in real terms over the preceding year.

Subsequently the Commission will review annually the year just completed, and, on the basis of further guidelines from the Government update plans for each of the subsequent 2 years as well as making initial proposals for a new third year. Within this context there will be provision for longer term reviews.

Mr President,I mention that in terms of the bids of forward Estimates, the total commitment here is some $80m lower. I remind the Senate at this point that the previous Government did not act on the 1976-78 triennial report of the education commissions and reduced the funds for 1976 by $105m compared with 1975. To take this further, I should say by way of example that the Schools Commission in its report sought approximately $720m for 1976 but received $498m in December 1975, a reduction of $222m.

In conclusion I point out to honourable senators that within the context of the vigorous action the Government has now taken to restrain public expenditure, it has honoured its election promise to maintain spending on essential education programs. Mr President, I move:

Debate (on motion by Senator Wriedt) adjourned.

page 1815

QUESTION

BUSINESS OF THE SENATE

Senator WITHERS:
Western AustraliaLeader of the Government in the Senate · LP

- Mr Acting Deputy President, I ask for leave to make a very brief statement on next week’s possible program.

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

Senator WITHERS:

– Honourable senators will know that, during the last 10 or 1 1 weeks, on Thursday afternoons we have been circulating information about the Government’s expectations regarding the business of the Senate for the following week. This has generally been done on my side by the Government Whip, and I have just caught up with some of these matters tonight. On the assumption that the Acts Citation Bill is not passed tonight- it might not be- that Bill will have to be considered on Tuesday, followed by Appropriation Bill (No. 3) and the Appropriation Bill (No. 4). It is the Government’s intention on Wednesday to debate the statements put down tonight by Senator Cotton and Senator Carrick. I do not expect a response tonight from the Opposition or even from my own colleagues, but I am just mentioning this matter at the moment so that honourable senators will have it in their minds when they return here next week.

I would be prepared to have a cognate debate on the Appropriation Bills, the statements made tonight and the various second reading speeches which will be made on the related Bills in the House of Representatives tonight so that we would not get caught up in the situation where people tried to take points of order by saying: You should not say so and so on Tuesday because it is a matter on the notice paper for Wednesday’. So, in effect we could have a very wide ranging debate over all the issues canvassed in the appropriation Bills, Senator Cotton’s statement, Senator Carrick ‘s statement and the Bill dealing with the new family allowances. There would be a total wide ranging debate on all those matters running over the 2 days.

I do not expect a reaction tonight because I am just putting this suggestion forward. I have not even consulted my own colleagues about it. I thought that if I put it forward for consideration honourable senators could think about it over the weekend and perhaps the Whips, Senator Douglas McClelland and others could get together and talk about it on Monday night or Tuesday morning. I thought that it might be a more sensible arrangement to have a sort of unlimited, unrestricted debate on all these issues. I leave that suggestion for consideration by the Senate.

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

- Mr Acting Deputy President,I seek leave to make a statement on the same matter.

The ACTING DEPUTY PRESIDENT-Is leave granted? There being no objection, leave is granted.

Senator Douglas McClelland:
NEW SOUTH WALES · ALP

– In response to what Senator Withers has said, Senator Chaney and Senator Georges- the 2 Whipsand I separately have had discussions on this matter. Whilst no commitment is given by the Opposition now, I think I can say at this stage that I have indicated already to Senator Chaney that it is my personal view that the proposal now enunciated publicly by Senator Withers is a fair and reasonable one. However, I have indicated to Senator Chaney that my colleague Senator Cavanagh is in the process of making a speech on the first reading of the Appropriation Bill (No. 3), and he wants to continue his remarks in that regard. I also think that the Deputy Leader of the Opposition, Senator Keeffe, wishes to make a short statement on the first reading of that money Bill. So that he would not be precluded from taking part in the cognate debate, I think it would be fair and reasonable on the part of the Government to agree to allow the debate on the first reading of the Appropriation Bill (No. 3) to continue. We have decided to hold a meeting at 2 o’clock on Tuesday so that this matter can be discussed. What Senator Withers has said, subject to what I have added, would be my recommendation to my Party colleagues.

Senator GEORGES:
Queensland

-Mr Acting Deputy President, I seek leave to make a short statement on the same matter.

The ACTING DEPUTY PRESIDENT-Is leave granted? There being no objection, leave is granted.

Senator GEORGES:

– Since the statement was put down by Senator Cotton tonight there have been requests from honourable senators on this side of the chamber to take part in the debate on that statement, and the reason why they want to do so is obvious. When this matter is being considered, taking all these other things that have been said into consideration, perhaps the leaders could consider cutting down the time for which each honourable senator can speak on Tuesday. Normally it would be an hour. During the whole of the cognate debate we may be able to confine ourselves to speak for 20 minutes each rather than have the full time available to us. I think that it would be wise to allow as many honourable senators as possible to participate in the debate on this far reaching and rather disastrous statement that has been put down tonight.

page 1816

ROADS ACTS AMENDMENT BILL 1976

Second Reading

Debate resumed from 19 May on motion by Senator Carrick:

That the Bill be now read a second time.

Senator JESSOP:
South Australia

– Last night, prior to the adjournment of this debate, I was discussing the provisions of this Bill which relate to financial assistance to the States for roads. I indicated that the provisions were consistent with the intentions of the Government to provide the States with more flexibility in the management of their funds. It provides also much more flexibility for local government. The Bill appropriates an additional $64m for these purposes. The funds to be received by the States are: New South Wales. $ 19.9m; Victoria, $ 13.3m; Queensland, $ 13.2m; South Australia, $5. 8m; Western Australia, $8.8m; and Tasmania, $3m.

In his second reading speech, the Minister for Education (Senator Carrick) pointed out one or two aspects of the Bill on which I wish to elaborate as these are quite significant with respect to the Government’s policy in this area. The Minister said:

As a sign of our co-operative approach we have accepted the requests made by the States in respect of allocations and the States have given assurances that they are able to provide properly for local government authorities.

The Minister continues:

More important however is the change we are proposing with regard to local government road works. At the present time State governments are obliged under the Act to seek approval for individual projects. In fact this system has already broken down. Generally, the States are simply unable to provide this level of detail because it has no part in their normal administrative procedures. We are therefore proposing to restructure the Act in respect of rural and urban local roads so that in future State governments may seek approval of proposed allocations of Commonwealth funds to local authorities.

Over the last 3 years, local government authorities in particular have found it extremely difficult to conduct their road programs properly because, under the last Commonwealth aid roads agreement introduced by the former GovernmentI referred to this matter in a debate on another subject- the allocation of money for roads was based on a Bureau of Roads report which allowed for a 6 per cent inflation rate. I brought this matter out and I repeat it now. Those local authorities have been faced with an inflation rate with respect to construction costs of between 1 5 per cent and 20 per cent. When we appreciate that in the same category of roads a decreasing amount was made available over the years for which that legislation provided we can see that this has caused local government authorities great problems. So, I believe that this Bill will help in that respect.

I am particularly interested- and I will not dwell too long on this aspect- in the allocation under Schedule 12 of the Bill for additional grants to be extended on the construction of urban arterial roads. This is an area to which the Federal Government must pay some more attention in the future. Let me refer for a moment to a letter that appeared in the Bulletin of 8 May in response to an article by Peter Samuel. In his article on the public transport mess in Australian States, Peter Samuel asks whether there is a real answer. The letter is written by Mr Ernest C. Marty, Non-Stop Systems International.

Cremorne, New South Wales. I think this letter is worth reading as it is quite useful comment. The letter reads:

The nearest thing to an answer lies in a proper re-think of the entire transportation picture with particular reference to traffic as a whole.

The cost of improving, extending, or even maintaining the infrastructure of the rail system to an acceptable standard is unthinkable in the economic terms of today. For instance, in the Irianian capital, Teheran, the Government has committed itself to a mere 60 kilometres (371/2 miles) of ‘Metro’ at a cost now estimated at $2, 500m!

It is therefore essential to examine ways of making bus services a more viable alternative to the personal vehicle.

There are 4 basic reasons why passengers are increasingly deserting the bus: Inconvenience (the long wait between services ); slow travel ( as a result of traffic congestion ); personal discomfort; and lack of dignity.

The prime requirement for efficient bus operation is a restructuring of road traffic as a whole. If conflict between buses and other road traffic is eliminated, particularly at bus stops, then the bus can travel at its own optimum speed. This makes possible faster turn-around, enabling more trips per vehicle to be made and thus a greater frequency of service with the same number of vehicles. Time taken per journey is also substantially cut.

To some extent, this has been proved by the success of transit lanes in certain arterial roads in Sydney, where buses are able to move with less obstruction from other traffic. However, this is merely a ‘band-aid’ attempt to solve the problem.

The only long term solution lies in the creation of ‘flow arterials’ in which there is no need for traffic to stop at intersections, and in which there is no conflict between the various modes of travel.

Mr Acting Deputy President, as you were in Mexico recently, I think that you will be interested in the next comment in particular. I will continue to quote from the letter and perhaps elaborate a little on it later. The letter continues:

This can be achieved by the installation of miniature interchanges, the geometry of which was invented by Arturo Olivero Cedeno, a Mexican traffic expert, and which we have offered- so far with no success- to the various Australian governments.

The Olivero interchange enables existing roads to carry 3 to 4 times as much traffic without congestion and at about 21/2 times present average speeds. No resumption of property or demolition is required. It also creates the desirable separation of cars and buses at the most critical points.

By eliminating traffic hold-ups, there are major savings to the economy in reduced pollution, less fuel wasted in idling, fewer man-hours lost in delays and fewer intersection accidents.

Because no funds need be diverted into the purchase of propertyfor demolition, the entire amount of available funds can be used for actual construction- paying wages and materials bills.

The concept of the Olivero system of intersection treatment was referred to in a document intitled Roads and their Environment’ which was the second report of the House of Representatives Select Committee on Road Safety. At page 34 of that report in paragraph 149 reference was made to the Olivero system. The report states:

The Olivero system was examined by the Commonwealth Bureau of Road’s, the Department of Transport and the Bureau of Transport Economics at the Committee’s request. The CBR considered that the system has many favourable aspects in regard to traffic operations and safety and to the preservation of adjoining land and property. The CBR also considered that the separation of traffic at intersections could be advantageous from the point of view of road safety but the system could not be regarded as being universally practicable at every intersection.

If honourable senators care to read the rest of page 35 of the report they will see that there is a lot of merit in this system. The object is to confine buses to the top level and to provide subways for vehicles turning right and left. As buses represent about 3 per cent to 4 per cent of the traffic, honourable senators can see that there will be tremendous advantages for pedestrians who can cross the top surface in comparative safety. Other designs have been drawn to deal with high speed traffic allowing for gentle curves for country areas. I know that Australia is not at that stage yet. I believe that in the cities the clover leaf type of intersection will occupy 61/2 times more area than this system.

I think this is a point at which the Government ought to look very carefully. I realise that such an intersection will cost something like $2m but I ask honourable senators to remember the points I have mentioned in the letter, namely, that there will be reduction in idling time and in pollution. I believe that suggestion has some merit and I commend it to the Minister for Transport for his serious consideraiton. I ask the Minister for Education (Senator Carrick) who is at the table to convey that thought to the Minister with the view that in the future perhaps we may establish and finance pilot intersection programs in capital cities where this type of intersection could be tried. When our economic management program takes effect- I sincerely hope that it will not be long before it does- I suggest that the Minister may give thought to providing funds for that purpose. I support the Bill.

Senator CARRICK:
New South WalesMinister for Education · LP

– in reply- I will be very brief. It is clear that both sides of the Senate support the Bill which, of course, is to provide and additional $64m for roads. It allows for the wider variation of use of that money in a local government field. The Bill is commended by both sides of the Senate and I therefore commend it.

Question resolved in the affirmative.

Bill read a second time.

In Committee

The Bill.

Senator JESSOP:
South Australia

– I would like the Minister for Education (Senator Carrick) to offer a comment on the suggestion which I made with respect to intersections. I would like his views.

Senator CARRICK:
New South WalesMinister for Education · LP

– I listened with particular interest. I had already made a mental note to draw the comments which Senator Jessop made to the attention of my colleague in the other place.

Senator KEEFFE:
Queensland

– I would like to make a comment. In my remarks last evening I mentioned the great increase in some areas of roads, particularly rural areas. Has the Minister for Transport (Mr Nixon) replied to those remarks?

Senator CARRICK:
New South WalesMinister for Education · LP

– I do not have a reply but I shall seek one out.

Senator Keeffe:

– I am merely looking for the reasons.

Senator CARRICK:

-I will seek out a reply and let the honourable senator have it.

Bill agreed to.

Bill reported without amendment; report adopted.

Third Reading

Bill (on motion by Senator Carrick) read a third time.

page 1818

ACTS CITATION BILL 1976

Second Reading

Debate resumed from 28 April on motion by Senator Greenwood:

That the Bill be now read a second time.

Senator BUTTON:
Victoria

-The Opposition does not oppose this Bill. I think the reasons for its introduction are clearly and adequately set out in the second reading speech of the Minister for Environment, Housing and Community Development (Senator Greenwood). I doubt that honourable senators would be particularly interested in a speech on this rather technical subject. Accordingly, I decline to make one, except to say that the legislation is an improvement and will be of assistance to both the Parliament and the Parliamentary Counsel. I commend the Bill to the Senate.

Question resolved in the affirmative.

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

page 1818

AUDIT AMENDMENT BILL 1976

Bill received from the House of Representatives.

Ordered that the Bill may be taken through all its stages without delay.

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

Second Reading

Senator WITHERS:
Western AustraliaMinister for Administrative Services · LP

– I move:

I ask for leave to have the second reading speech incorporated in Hansard.

The PRESIDENT:

-Is leave granted? There being no objection, leave is granted. (The speech read as follows)-

The Audit Act of 1901 was the fourth piece of legislation enacted by the Commonwealth Parliament.

It contained principles and procedures which were derived from the Audit Acts which were then in force in each of the States and which in turn had their origins in the British Exchequer and Audit Act of 1866.

It laid down the arrangements for the keeping of the public accounts and for the audit of them by an Auditor-General.

It conferred certain powers on the Treasurer.

It required an accounting from him after the close of each financial year and it required an explanation and report from the Auditor-General on the Treasurer’s stewardship.

The Audit Act of 1 90 1 has been amended on a number of occasions as circumstances have shown the need for new provisions, or for the better expression of existing ones. It can be said with confidence that all governments have approached the amendment of this basic and important piece of legislation with the most careful consideration of the need for change.

The Act governs the accounting for and auditing of a vast range of transactions amounting to receipts and expenditures of, in 1975-76 Budget terms, $19 billion and $22 billion respectively throughout Australia, its territories and in all parts of the world and which are initiated by 25 Departments of State. It is therefore important that amendments which are put forward are responsive to growth in volume and variety of transactions and to changes in methods of processing them, as well as maintaining in an appropriate way, proper elements of control and accountability which Parliament would expect to be applied to the management of the Government’s financial affairs.

In the past ten years there have been significant changes in accounting methods and procedures. If this had not been so Government departments could not have coped with the volume of work as efficiently as they have. Honourable senators will be interested to know that in 1974-75, the Department of Social Security issued 56 million cheques and the Repatriation Department nearly 9 million. The total number of cheques issued on behalf of all departments was 76 million. These figures are the end product of a very considerable accounting workload- a workload governed by the Audit Act and the Treasury Regulations and directions issued under the authority of that Act.

I referred to changes in methods and procedures. Chief amongst these has been the use of computers and I believe that the Australian Government is in the forefront of governments in applying modern technology to government accounting. Almost all of the 76 million cheques I mentioned above are prepared by computers, certainly all are processed, after presentation, by computer and the bank accounts quickly and accurately reconciled. Computers also play a part in the calculation of many entitlements ranging from salaries to pharmaceutical benefits. Most of the Government’s millions of individual transactions are recorded, analysed and summarised in ledgers and accounting records that are processed by computers.

I have mentioned some of these matters to illustrate to honourable senators the extent of the accounting work which Government Departments must do. But I want to go on to emphasise that it is not enough to have modern equipment and up to date systems unless the legislation under which departments must operate is sufficiently flexible to allow vast numbers of accounts to be processed quickly yet accurately without the need for unwarranted clerical effort. This Bill will amend the Audit Act in a way which will provide that flexibility without destroying the principles of control which are necessary, and have been necessary since 1 90 1 , to ensure that moneys are paid out only when it is clear that there is proper authority for the transaction and that the supply or service has been performed.

Many of the amendments proposed in this Bill are of a technical nature and I will not therefore attempt to explain them all. Some have been proposed as a result of legal advice to rectify defects in the present law and thus to validate existing procedures. I am happy to say that all of them have the full support of the AuditorGeneral, who has been consulted at every stage in the preparation of this Bill.

Most of the proposals have been explained to the Eighth and Ninth Joint Committees of Public Accounts. No difficulties were raised in these discussions. The few proposals which were not discussed with the committees are mainly of a drafting nature or designed to give proper authority for already accepted procedures.

I turn now to some of the principal changes which are proposed.

Clause 15 amends section 32 of the Principal Act in order to remedy a defect in the present wording which was raised by the previous AuditorGeneral. In certain Acts which contain standing appropriations, the payment of moneys is expressed to be conditional upon some event occurring or some action being carried out, and legal advice is that until that event occurs or that action is taken there is no available appropriation. The calculation of income tax refunds must, for example, follow assessment action and until that process has been completed the special appropriation for these refunds cannot be drawn upon.

The principal amendment proposed will make it clear that appropriation is available for expenditure subject to the occurrence of the contingency or condition expressed in relation to the appropriation. This does no more than give proper legal backing to procedures which have been followed for many years, probably since Federation. This and other amendments to this section do not imply any change in procedures, or any reduction in control, and they do not vary the long-standing requirement for the Treasurer to seek a Governor-General’s warrant to cover the amounts he expects to be disbursed, and the Auditor-General to certify, before the warrant is submitted to the Governor-General, that Parliament has provided an appropriation which will authorise the disbursement of those amounts.

The steps relating to the payment of accounts set out in the present section 34 are to be amended by clause 19 to provide a framework within which the most modern procedures governing computer-based and other payment systems may be properly developed and prescribed.

For such systems the present section is too stringent in its requirement that ‘no person shall certify any account until he shall have ascertained that the expenditure has been duly approved in writing by the prescribed authority and that the account is correct in every particular, and that the expenditure involved therein is in accordance with the laws and regulations applicable thereto and is charged against the proper head of expenditure’. Systems developed for the preparation of accounts by computer do not enable a certifying officer to certify that the account is ‘correct in every particular’ or that it is in accordance with the laws and regulations applicable thereto’ except in so far as he is enabled to rely on the various control points built into the computer programs and on information furnished to him by other prescribed officers. This does not, however, mean any loss of control over payments, which under a computerised system are computed from a vast number of individual records, always provided that there has been full observance of appropriate checks and controls as designed for the system. Under the proposed amendment it is this latter aspect, that of full observance of appropriate checks and controls, that becomes the central responsibility of the certifying officer.

The proposed amended section 34 will allow the Treasurer to issue directions to certifying officers as to the checks to be imposed and for regulations to be made concerning procedures to be followed by them before they can give a certificate in those situations where it is impracticable to follow standard procedures.

Clause 19 is also intended to clarify the authority of the Treasurer, already in section 34 of the Act, to approve act of grace payments and to authorise him to delegate this authority and thus facilitate the processing of claims for payments not otherwise authorised by law.

Section 62a of the Audit Act empowers the Treasurer to open trust accounts, to define their purposes and to close trust accounts. But the Treasurer cannot vary the purposes of a trust account after it has been established and this leads on occasions to the need to close a trust account and open another with a slightly differing title and purposes. Legal difficulties then arise in connection w::h the transfer of the value of assets- such as stores bought from the funds of the ‘old’ trust account- to the ‘new’ trust account, as there is nothing in the Act as it stands to authorise the transfer of such assets. Clause 20 amends section 35 to overcome this problem.

Clause 2 1 inserts a new section to deal with the considerable administrative difficulties which currently arise with appropriations and appointments when the administrative arrangements are changed resulting in the abolition of departments or existing functions being transferred to another department or departments. This provision will authorise the Treasurer to issue moneys already appropriated for the discharge of functions in one department to another department for the purpose of corresponding functions which have been transferred to it by order of the Governor-General. The Treasurer would not, however, be authorised to issue funds beyond the limit of appropriations already made by the Parliament.

Clause 28 will remove the requirement in section 42(2) of the present legislation for the Auditor-General to surcharge the person responsible for the loss of public moneys or stores, or damage caused to stores by fraud, mistake, default, neglect or error. Over the years that the surcharge provision has been in existence the Auditor-General ‘s office has experienced almost insurmountable difficulties in establishing default or neglect and the section has therefore been virtually non-operative. Moreover, it is no longer considered appropriate that the AuditorGeneral have the responsibility of deciding that recovery should be made in a particular case and without there being a requirement for proof of guilt or for a defence by the person at fault.

Clause 45 replaces these outmoded provisions with more equitable procedures for the recovery of loss of public moneys or stores that are under the control of an accounting officer or for the value of stores lost or deficient or damage to stores due to negligence or misconduct as a debt due to the Government, and gives to the Government, and its employees, the rights and protection of the law.

The longstanding provision in section 5 1 of the Act requiring the Auditor-General to explain the Treasurer’s statement of receipts and expenditure ‘in full ‘ is most difficult, if not impossible to comply with. The amendment in clause 33 removes the difficulty confronting the AuditorGeneral in deciding precisely how far he should go in explaining the statement. The requirement as it stands is impracticable and has its origin in early days of federation when the expenditures of the Commonwealth were quite limited in volume and extent.

The proposed change does not imply any reduction in the information to be given in the Auditor-General’s report to Parliament- it simply means that the Auditor-General will exercise his judgment as to the need for explanation of particular expenditures.

Clause 42 inserts a new part which will provide proper authority for the Auditor-General to undertake certain audits in addition to those which Parliament specifically requires him to undertake. The first of these are audits imposed upon him by an ordinance of a territory, as according to legal opinion he is not empowered to undertake such audits unless appropriate authority is given to him by the Audit Act. Secondly, there are audits of quasi-departmental, or intergovernmental activities in pursuance of a request by a Minister- it is undesirable as a matter of principle for the Auditor-General to accept such requests without a proper expression in the Audit Act of his standing and powers. A third category relates to public or private companies in which the Government is a member.

In most of the cases 1 have just referred to it is appropriate for an audit fee to be charged so that the costs of audit are reflected in the accounts of the organisation. Legal advice however indicates that if audit fees are to be charged, there should be proper authority for this in the Audit Act. Clause 42 will therefore make it clear that fees may be charged by the Auditor-General to (and paid by) an organisation for the audit of its books, records, and financial statements.

The standard accounting provisions applied to certain trading and administrative authorities have also been included in this part in order to simplify the task of parliamentary counsel in drafting future public authority legislation.

Honourable senators will note that no change is proposed in this Bill to the powers and responsibilities of the Auditor-General. A good deal has been said in the Press and in other places about the need for management audits or efficiency audits. The case for the Auditor-General being required to go beyond regularity and to examine whether there has been ‘value for money’ has been strongly argued. The Government does not wish to make any such changes to the AuditorGeneral’s powers at this stage but will give further consideration to whether they should be extended, and if so, just how they should be extended, at the appropriate time.

I commend the Bill to honourable senators.

Debate (on motion by Senator Douglas McClelland) adjourned.

page 1821

STEVEDORING INDUSTRY (TEMPORARY PROVISIONS) AMENDMENT BILL 1976

Bill received from the House of Representatives.

Ordered that the Bill may be taken through all its stages without delay.

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

Second Reading

Senator WITHERS:
Western AustraliaMinister for Administrative Services · LP

– I move:

I seek leave to incorporate the second reading speech in Hansard.

The PRESIDENT:

-Is leave granted? There being no objection, leave is granted. (The speech read as follows)-

This Bill seeks to amend the Stevedoring Industry (Temporary Provisions) Act 1967-1974 in 2 ways. It seeks to extend the operation of the Act from 1 July 1976 to 31 December 1976, and to enable refunds to be made to the Fremantle Port Authority, in respect of certain employees of the Port Authority.

The Bill is a very simple one. The most important aspect of it is that it seeks to extend the operation of the legislation for a limited period. Honourable senators will be aware that this Act has been extended on a number of previous occasions and the Government finds it necessary to do so again for reasons which I will outline. The Government has given detailed consideration to the future arrangements to apply in this industry and I propose to elaborate on the attitude the Government takes to this whole question later in this speech. To give effect to what the Government proposes it will of course be necessary to extend the operation of the Act until 3 1 December 1976.

Before proceeding to elaborate on the Government’s attitude to future arrangements for the industry I want to refer briefly to that aspect of the Bill dealing with waterside workers employed by the Fremantle Port Authority. The Bill seeks to facilitate an agreement reached by the Fremantle Port Authority and the Waterside Workers Federation and it is a matter which has the support of the Stevedoring Industry Council. lt concerns approximately 30 members of the Waterside Workers Federation currently employed by the Fremantle Port Authority as crane drivers. These men are not registered waterside workers and their conditions of employment with the Authority provide for different long service leave and pension entitlements to entitlements for registered waterside workers under existing legislation. In 1973 the Fremantle Port Authority and the WWF agreed in principle to an arrangement whereby crane drivers would become registered waterside workers but retain separate long service leave and pension entitlements. This arrangement is limited to waterside workers employed as crane drivers at the time of registration. Persons employed in the future as crane drivers are to be subject to the normal conditions of employment. Efforts were made in 1974 to resolve the matter by regulation. However legislative amendment is necessary to enable the long service leave and pension components of the Stevedoring Industry Charge in respect of these men to be reimbursed to the Port Authority which makes direct provision for these matters. A Bill with the same purpose was introduced into Parliament in November 1975 but lapsed at the second reading stage when Parliament was prorogued.

The intention of the Bill (Clause 4) is to permit the Australian Stevedoring Industry Authority to refund to the Fremantle Port Authority amounts equal to such parts of the Stevedoring Industry Charge as the ASIA considers appropriate for the purpose of meeting the long service leave and pension entitlements of a waterside worker in respect of persons who, prior to their registration as waterside workers, were employed as crane drivers by the Fremantle Port Authority. I now wish to elaborate on the consideration the Government has given to the overall question of the future of the industry and what the Government believes is the proper course to take.

Legislative Involvement in the Industry

The Commonwealth’s direct statutory role in relation to the stevedoring industry actually began in 1928. It was in 1942 however that wartime conditions compelled the Government to take steps designed to end the chaotic labour situation which had developed on the waterfront during the early years of the war. This role was exercised initially by means of national security regulations which provided for a Stevedoring Industry Commission under the chairmanship of the Chief Judge of the Commonwealth Court of Conciliation and Arbitration. The Commission became inoperative in 1 949 and was replaced by the Australian Stevedoring Industry Board. In turn, the Board was replaced by the Australian Stevedoring Industry Authority in 1956. The Authority has continued in existence since that time, although, as indicated below, its powers have undergone considerable change since 1967. Legislation which regulates this industry is as follows:

The Stevedoring Industry Act 1956-73;

The Stevedoring Industry (Temporary

Provisions) Act 1967-74;

The Stevedoring Industry Charge Act

1947-75;

The Stevedoring Industry Charge Assessment Act 1947-73;

The first mentioned Act set up the Australian Stevedoring Industry Authority and has been superseded in many respects by the Stevedoring Industry (Temporary Provisions) Act introduced in 1967, and the regulations made thereunder. The latter piece of legislation was introduced when the Government adopted arrangements agreed to by representatives of employers, unions and the Government in the National Stevedoring Industry Conference set up in 1965 under the chairmanship of A. E. Woodward, Q.C. The Stevedoring Industry Charge Act and Charge Assessment Act are machinery measures administered by the Taxation Commissioner and exist for the purposes of financing the administrative arrangements applying in the industry.

The Australian Stevedoring Industry Authority

The Australian Stevedoring Industry Authority was established in 1956 and replaced the Australian Stevedoring Industry Board. Since the introduction of the National Conference Scheme of employment in 1967, the Authority has had considerably reduced responsibilities in the industry. For the performance of its functions, the Authority is empowered to make orders having the force of law. The Authority’s expenditure is financed by the stevedoring industry charge which is levied on man-hours worked by registered waterside workers and paid by employers to the Commonwealth Commissioner of Taxation. Until 1970, the powers and functions of the Authority were vested in a Chairman, and 2 other members, one of whom was to be experienced in industrial affairs by reason of having been an employer in an industry or having been otherwise associated with management in industry; and the other experienced in industrial affairs by reason of having been associated with trade union affairs. In 1970, this Board was replaced by a single Director.

The Waterside Workers Federation

The most significant union in the industry is the Waterside Workers Federation, whose members provide the bulk of the manpower for stevedoring operations. At 30 June 1975 the number of waterside workers registered, in accordance with the legislation regulating the industry’, was 13 375. Taking into account other categories of employees in the industry the total number employed is in the vicinity of 20 000.

The National Conference Scheme

Until 1967 the almost exclusively casual nature of waterside employment resulted in a situation whereby there was almost a complete absence of the employer/employee relationship which existed in most other industries. Between 1914. when the first Federal award covering waterside employment was made, and 1967, industrial relationships in the industry proceeded by means of continuous confrontation with the relative strengths of the parties being determined by the prevailing economic situation. In 1965 the Government set up the National Stevedoring Industry Conference under the chairmanship of Mr A. E. Woodward, Q.C., with the objective of achieving a long term improvement in conditions in the stevedoring industry. Participants were the Australian Council of Trade Unions, the Association of Employers of Waterside Labour, the Waterside Workers’ Federation, the Australian Stevedoring Industry Authority and the Department of Labour and National Service.

Following meeting in 1965 and 1966, the Conference reached agreement in April 1967. The main proposals were:

Casual employment to be replaced by a system of permanent employment on a weekly hire in the major ports. The bulk of these permanent employees were to be employed directly by the individual stevedoring companies (‘operational labour’) and the remainder by a representative employer holding company, Stevedoring Employers of Australia Ltd (SEAL). This labour (‘holding company ‘or ‘pool’ labour) was to be allocated on a daily basis to operational stevedores to meet labour shortages as required.

The introduction of pension and past service benefit schemes.

Arrangements for coping with anticipated redundancies.

New disciplinary procedures for weekly hire employees. Strengthening the role of Industrial Relations Committees for dealing with potential and actual industrial disputes.

A reduction in the functions of the Australian Stevedoring Industry Authority in permanent employment ports.

The agreement embodied in the Conference report was referred back to the parties for approval on the basis that it was a ‘package’ and was eventually endorsed on that basis by all concerned including the Government. In November 1967 the Government introduced enabling legislation to permit the scheme to operate on a trial basis until 30 June 1970. The end of casual employment was regarded as a major industrial breakthrough. It was expected that permanent employment would provide an opportunity for the development of direct employer/employee relationships which would significantly improve relations within the industry.

The National Conference continued to operate until 1970. In that year it was reconstructed and given legislative recognition as the Stevedoring Industry Council. From 1967 until 1972, the Conference/Council was chaired by A. E. Woodward, Q.C. Since 1972, the Council Chairman has been Mr R. M. Northrop, Q.C. (now Mr Justice Northrop). It was initially intended that the national Conference scheme should have a trial period of21/2 years. However, practical difficulties were found with the scheme’s operation and aspects of it were revised or renegotiated. These modifications and departures delayed final agreement on permanent arrangements for the industry. Additionally, the continued impact of technological change has made the industry’s future uncertain. As a result, it became necessary to extend the life of the trial period on several occasions. The temporary legislation governing the scheme is currently due to expire on 30 June 1976.

It is recalled that the National Conference began negotiations against a background of many years of intense industrial unrest and continuous confrontation. The National Conference in fact represented the first successful attempt at the national level at having the major industrial parties in the industry engage in discussions which led to achieving an essential first step in breaking with the past. This prepared the industry for the major technological developments of the late 1960s and beyond and allowed these changes to occur without the industrial dislocation which occurred in similar overseas situations.

Recent Developments

As indicated the National Conference scheme of employment envisaged that the industry would move towards a situation where normal employer/employee relationships would exist. Since the introduction of the conference scheme arrangements embodied as they were in legislation of a temporary nature consideration has been given as to the form that future or more permanent arrangements should take. It will be recalled that Mr Cameron when Minister for Labour and Immigration, gave consideration to a proposal whereby the operations of the industry would be carried out by the Government, thus in effect nationalising the industry. The Labor Government did not proceed with this approach and late in 1975 the then Minister, Senator James McClelland, requested Mr R. M. Northrop, Q.C (as he then was) to report on the views of the parties to the industry ‘as to what they see as the problems associated with the existing arrangements and for the action they consider appropriate for the Government to take as to future arrangements’. Mr Justice Northrop has now reported to me and I have consulted with the principal parties to the industry on the details of their submissions.

In its consideration of this whole question the Government has been mindful that the direct Government involvement in the industry has diminished sharply since 1 967 and that no part of the industry finds the existing arrangements acceptable. In the light of the views that have emerged from the Northrop Inquiry there are really only two courses the Government can consider, that is to further encourage the trend that has developed since 1967 or to reverse that trend by initiating greater Government involvement. It has been the Government’s concern to ensure that the industry should be as efficient as possible and to operate in such a way that the wider community interests are fully recognised.

Having examined all material available concerning the future arrangements for the stevedoring industry, including the position statement prepared by Mr Justice Northrop, and having discussed this statement with major interests in the industry the Government is now able to indicate the course of action it considers appropriate. In doing so the following observations are made.

Existing Problems in the Industry

The Government notes that in paragraph 54 of his statement Mr Justice Northrop identifies the problems arising under the existing arrangements as being-

  1. The inflexibility of the size of the labour force- the redundancy problem and the difficulty of reducing effectively the size of the workforce as well as maintaining a skilled workforce not composed entirely of the more elderly workers, as well as the financial security of the waterside worker.
  2. The method of allocation of labour between operational employers and SEAL resulting in the incurring of ‘locked up’ idle time.
  3. The method of funding the industry as contained in the existing legislation, particularly the basis of the charge being on man-hours rather than on tonnage handled and delays in varying the rate of the charge.
  4. The introduction of restrictive practices such as equalisation of earnings and of idle time between labour at a port.
  5. The lack of effective dispute settlement procedures and of discipline.
  6. The continued high incidence of strikes and unauthorised stoppages in the industry.

The deficiencies that those involved in the industry claim to exist are of concern to the Government because they all add to the industry’s costs and because the burden of those increased costs falls to the community.

Government’s attitude

Those involved in the industry have put before the Government 2 broad alternativesrestructuring of the industry involving some form of Government control and/or participation; progressive withdrawal of the Government from its present statutory role in the industry.

The Government has also explored other alternatives. The preponderance of those who suggested increased Government involvement in the industry support the creation of a statutory body to employ all waterside workers and possibly clerks and foremen stevedores as a pool system and to hire out these people to operational companies. The Australian Stevedoring Industry Authority put forward detailed submissions as to the powers and operation of such a body.

For a Government to take control of an industry’s workforce would be an unprecedented step. lt means in effect denying to both employees and employers the right to the normal relationships that are found in other industries. It would take from the employer the right to control and direct their employees to the ends that their commercial endeavours require. At the same time it would take from the employee an entitlement to see his contribution as part of the operational concern. It would be an extraordinary step to take but one which the Government does not set aside lightly. The Government however does not believe that such a course of action would be timely or appropriate.

The Government acknowledges that this industry has not been the same as other industries. The Government believes that now everything should be done to ensure that this industry moves toward a situation where the relationships in the industry are as normal as possible and that employers and employees within the industry accept the same restraints and responsibilities required of other industries. That is to say that the Government’s central concern is to ensure that the community interests are fully taken into account.

Matters for Consideration by Parties in the Industry

It is therefore proposed that in the ensuing months that the Government will consult with those involved in the industry as to how they propose to develop a suitable framework within which solutions can be provided to major industry problems. In particular the Government believes the following are essential considerations- continued efforts to reduce the existing size of the workforce. I consider this aspect of fundamental importance. Earlier this year I approached the Treasurer (Mr Lynch) to secure for the Authority access to funds to enable redundancy payments to be made to waterside workers to ensure that those wishing to leave the industry were free to do so. I am advised that already more than 250 waterside workers have cancelled their registrations under these arrangements and more are likely to do so; satisfactory arrangements for recruitment and redundancy of waterside workers to cope with the fluctuating requirements as to the size of the workforce. By way of explanation I would point out that the inflexibility of the size of the workforce has been a problem mitigating against the efficiency of the industry. What is required is a means of effectively dealing with the peaks and troughs of labour demand. I would see the development of arrangements whereby the base labour force at any port can be added to by workers drawn from a supplementary force as the need arises, as an essential means of overcoming the problem; evidence of an adequate method of allocation of labour. It is expected that labour availability will be such that stevedoring operators will be able to have access to an adequate labour supply; means of securing improved industrial relations and methods for the settlement of disputes. Satisfactory consultative procedures to enable effective consideration of the industry problems in these areas would need to be developed; arrangements should be settled to allow user interests such as the Australian Shippers Council and other relevant bodies such as the Australian Port and Marine Association to have an effective voice on industry matters as part of the consultative procedures: satisfactory funding arrangements having regard to the existing deficit and future commitments. It has been suggested in some quarters that the accumulated deficit in the ASIA accounts should be covered by the Government providing funds from Consolidated Revenue. The Government could not agree to this- rather it is the responsibility of the industry. The Government has noted suggestions made that the industry would seek some temporary assistance towards meeting this problem and this is a matter I would be prepared to examine with industry interests.

Staff of Australian Stevedoring Industry Authority

The position regarding the staff of the ASIA is of particular concern to me. When meeting with the Federated Clerks Union, the Administrative and Clerical Officers Association, and the Professional Officers Association earlier this year, they all referred to what they saw as the special position of these staff in the their future had been uncertain for some time; that if the Authority were not to continue then special arrangements should be made for the staff; as well they expected that the earliest possible consultation would take place concerning decisions as to the future of the staff. I have already forewarned the Director of the Authority, the Australian Council of Trade Unions and the relevant unions of the course the Government intends to adopt and I have outlined the steps that will be taken as to the future of the staff. These include- application to them of the Government programs dealing with assistance to redundant employees in Commonwealth Departments and agencies and including discussions with both employers and unions as to the totality of the arrangements to apply; a special section of the Department will be devoted to co-ordinating the operations of the Commonwealth Employment Service in an exercise designed to provide maximum assistance aimed at locating the staff concerned in suitable alternative employment; and raising with employers in the industry the steps that they might take to offer to staff presently employed by the Authority new employment opportunities.

The Government is mindful of the role played by the ASIA and the contribution made by the staff of the Authority. It is the Government ‘s view that it is now time to bring to an end its direct regulatory involvement in this industry. Rather than turning to the alternative of the Government taking on to its payroll an additional twenty thousand employees and assuming a position where it imposes its will so directly upon the industry we would prefer to see the industry operating efficiently and responsibly of its own will.

Other Aspects

I have indicated, however, that the Government will require the clearest indication from the industry in respect of the considerations I have set down. However, as the costs associated with this industry have been a source of central concern to successive governments, I have consulted with my colleague, the Minister for Business and Consumer Affairs (Mr Howard), and expressed the view that in the light of the impact costs in this industry have on all sections of the community it is proper that such costs should come under surveillance to ensure that prices set are fair both to the supplier and consumer. There does seem to be a need for continuing monitoring of costs in this industry to identify and highlight such features as- reasons for cost increases profitability efficiency and productivity ability to generate funds for expansion level of profits likely flow-on effects of cost increases public interest considerations.

I am aware that these and other elements are considered relevant in inquiries held by the Prices Justification Tribunal when examining applications for increased prices. It would therefore seem appropriate that stevedoring companies seeking to increase the prices they charge should do so in the full light of examinations of this nature. The Government is aware of a number of applications from stevedoring companies to the Prices Justification Tribunal which are currently under examination. As well the Government considers that there should be supervision of any unreasonable market power in all industries and thus the stevedoring industry is no exception. The Government notes that the Trade Practices Commission is examining various applications by stevedoring companies relating to methods of fixing charges associated with wharf handling, etc., of inward and outward cargoes.

Conclusion

As is pointed out in the detailed position statement prepared by Mr Justice Northrop no submission made to him favoured the retention of the existing arrangements but with the temporary legislation amended on a permanent basis. For the Government to impose itself on the industry to the extent of becoming the direct employer of those working in the industry would be inappropriate, unwarranted and would not be a forward step. Nor would it bring a normal employer/employee relationship- it would create a situation where the Government would be employing workers but would have no responsibility for the operations on which they were engaged while the companies carrying out those operations would have no control of the labour. This would be a most abnormal arrangement.

It is the Government’s view that it is logical and progressive to encourage normal employer/employee relationships in this industry and that in doing so the employers and employees must accept the restraints and responsibilities inherent in such a situation.

Therefore it is proposed that to allow this industry to be placed on a basis which is as normal as possible the following steps are to be taken: the existing temporary legislation to be continued until 31 December 1976; the ASIA to continue its existing operations until 31 December 1976; arrangements will be put in hand to assist the staff of the ASIA as outlined earlier; the Stevedoring Industry Council, under the chairmanship of Mr Justice Northrop, to continue until 31 December 1976; the employers and the Waterside Workers Federation will be asked to indicate the steps being taken to reduce the existing size of the workforce; the employers and the Waterside Workers Federation will be required to submit for my consideration details of the arrangement proposed to deal with recruitment, redundancy and means of coping with the fluctuating labour requirements of the industry; the employers and the Waterside Workers Federation will be asked to evidence means of securing adequate labour allocation arrangements; satisfactory arrangements have to be determined concerning funding arrangements for the industry; proposed consultative machinery should provide details concerning effective representation of user interests, e.g. the Australian Shippers Council and other relevant bodies such as the Australian Ports and Marine Association.

The Government in the months ahead will be looking to those involved in the industry to develop a satisfactory framework within which those matters 1 have mentioned and others that have troubled this industry will be faced in a positive and responsible manner. In this statement I have sought to outline the Government’s aims but it is clearly the responsibility of those who would seek to be free of the legislative and regulatory requirements imposed for historical reasons in this industry to demonstrate their capacity to act with reason and restraint and with the community interest to the fore.

This statement is not the Government’s final word on the future of the industry but I have sought to give a clear indication of the way the Government believes the industry should develop. The statement is therefore designed to provide the outline within which detailed plans can be developed over the next 6 months for implementation of the arrangements I am foreshadowing. The Government will be strengthened in what it considers to be the normal, progressive and responsible course of action by the demonstrated attitudes of those in the industry during the months ahead.

Finally I must say that it is recognised that in recent years direct Government involvement in the industry has centered on its limited and diminished regulatory role. Now it considers that in light of the trend of recent years that role is no longer necessary. This is not to say, however, that it will no longer give attention to and seek to influence events and attitudes in relation to those matters affecting the industry which give greatest concern to the community generally. But for these matters to be given Government attention does not require the continued presence of a government regulatory agency. To enable what 1 have put forward to be implemented it is necessary to extend the operation of the Act. Before asking honourable senators to agree to such a course I believe they and everyone concerned with the industry and the community generally should have a clear indication of the Government’s intentions. It is for this reason that I have set out those intentions in such detail.

I commend the Bill to the House.

Debate (on motion by Senator Button) adjourned.

page 1827

STEVEDORING INDUSTRY CHARGE AMENDMENT BILL 1976

Bill received from the House of Representatives.

Ordered that the Bill may be taken through all its stages without delay.

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

Second Reading

Senator WITHERS:
Western AustraliaMinister for Administrative Services · LP

– I move:

I seek leave to incorporate the second reading speech in Hansard.

The PRESIDENT:

-Is leave granted? There being no objection, leave is granted. (The speech read as follows)-

This Bill seeks to extend the operation of the Stevedoring Industry Charge Act 1947-75 from 1 July 1976 to 31 December 1976. The Act provides for the imposition and collection of a levy by the Commissioner of Taxation upon registered employers of waterside workers. The charge is based on the number of hours worked by waterside workers and its proceeds are used by the Australian Stevedoring Industry Authority to meet its statutory commitments. The Act defines the maximum rates of charge and the actual rates are prescribed by regulation. The most important of the rates is that payable in respect of registered waterside workers employed on weekly hire at permanent or continuous ports, that is, for approximately 85 per cent of the workforce. This rate is presently $4 per man hour, which is the maximum defined by the Act. It is not proposed to increase the rate of charge.

The amendments being made by this Bill are in consequence of the proposal to extend until 3 1 December 1976 the operation of the Stevedoring Industry (Temporary Provisions) Act 1967-74 and will provide moneys for the continuation of financial arrangements in the industry during the proposed extended period of operation of the provisions of that Act. I commend the Bill to the House.

Debate (on motion by Senator Button) adjourned.

Senate adjourned at 10.8 p.m.

page 1829

ANSWERS TO QUESTIONS

The following answers to questions were circulated:

Industrial Statistics (Question No. 321)

Senator Colston:

asked the Minister representing the Minister for Employment and Industrial Relations, upon notice:

How many man-hours have been lost in Australia through (a) strike action: (b) lockouts: (c) sickness: and (d) industrial accidents, in each month since January 1975.

Senator Greenwood:
Minister for Environment, Housing and Community Development · VICTORIA · LP

– The Minister for Employment and Industrial Relations has provided the following answer to the honourable senator’s question:

  1. and ( b) Official industrial dispute statistics in Australia are published on the basis of man-days rather than manhours. The Commonwealth Statistician does not distinguish between strikes and lockouts but publishes information in terms of industrial disputes which are defined as disputes involving stoppages of work for ten man-days or more.

The latest figures available since January 1975 are as follows:

  1. No information is available as to the number of manhours lost in Australia through sickness each month since January 1975. However, it is possible to make a rough estimate of the average time lost per month in terms of mandays.

An indication of the extent of absence in Australian industry was obtained by a survey of absence attributed to sickness and accidents which the then Department of Labour undertook in October 1973. The survey covered 1056 manufacturing and non-manufacturing establishments throughout Australia.

It was found that 4.8 percent of rostered work time was lost due to sickness and accidents. In other words, out of every 1000 employees 48 were absent at any one time. Applying thisfigure to the total number of wage and salary earners in Australia, and taking account of estimates of the time lost due to industrial accidents each month ( 300 000 man-days), an average of approximately 4 million man-days are lost through sickness absence per month.

  1. d ) See answer to your Question No. 1 52 which appeared in Hansard on 6 April 1976 (page 1088). As a broad estimate, about 300 000 man-days arc lost each month through industrial accidents.

Tasmanian Senate Election

Senator Withers:
LP

-On 28 April 1976 Senator O’Byrne asked Senator Greenwood, who then represented the Attorney-General, the following question without notice:

My question is directed to the Minister representing the Attorney-General. Some weeks ago I asked a question relating to a petition to the Court of Disputed Returns on the matter of the Tasmanian Senate election. I asked when this important Senate matter was to be heard and whether a full panel of the High Court of Australia would comprise the Court of Disputed Returns. I now ask the Minister: Has he any reply to this question and. if not. when is it likely that this matter will be resolved?

I am now able to advise the honourable senator as follows:

The petition referred to is believed to be that of Mr Bruce Noel Hill. I am informed that the petitioner, having lodged the petition, has taken no other formal step in the proceeding. The rules of the High Court require that the petition be served and that it be advertised in both the Tasmanian and Commonwealth Gazelles. Until these steps are taken the matter will not be listed for hearing. Recent inquiry indicates that the petitioner proposes to proceed with the matter but no indication can presently be given of when the hearing may commence.

Under the Commonwealth Electoral Act the jurisdiction of the Court of Disputed Returns may be exercised by a single Justice or by a Full Court. The constitution of the Court in any particular case is a matter for the Court itself to determine.

Bellbird

Senator Carrick:
LP

– On 6 May 1976 Senator Melzer asked the Minister representing the Minister for Post and Telecommunications the following question, without notice:

Will the Minister point out to the ABC that ratings should not be the prime concern of the Commission but the interest and entertainment of country’ people is of great concernto this parliament. Will the Minister urge the ABC to leave Bellbird alone?

The Minister for Post and Telecommunications has provided the following answer to the honourable senator’s question:

The ABC’s Assistant General Manager (TV) Mr Graham White has issued the following press statement on this matter.

Considerable public reaction has been generated by reports that the ABC is either going to “axe” Bellbird or significantly change the program. The fact is that the ABC has decided to change the format of Bellbird to translate it into a weekly one-hour serial. Bellbird will remain on ABC television with its much-loved characters. There are several reasons for the proposed change. The most important reason is that the audience to Bellbird in some areas has been declining, although the ABC is aware that Bellbird remains extremely popular in most country areas throughout Australia. There has been no thought of taking the serial off the air.

In its present form, after nine years on the air. it has become more and more difficult to sustain fresh and involving storylines, despite the great writing, acting and production talent associated with the program.

The ABC is seeking a renewed vitality and a greater audience appeal for Bellbird. The change will take effect from Tuesday 3 August.”

Sporting Groups (Question No. 4S0)

Senator Colston:

asked the Minister for Environment, Housing and Community Development, upon notice:

  1. 1 ) Did the Minister recently inform a delegation that the Australian Government will not be providing any funds whatsoever to sporting groups until some time in 1977.
  2. ) Does this mean that no funds for this purpose will be provided in the 1976-77 Budget.
Senator Carrick:
LP

– The Acting Minister for Environment, Housing and Community Development has provided the following answer to the honourable senator’s question:

  1. 1 ) No. The delegation was informed that applications which had been received for funds during 1976 would not be proceeded with at this stage, but assistance would continue to the end of June 1976 where there were commitments made for on-going projects involving the full-time employment of coaches and administrators. *”
  2. The Government’s future commitment to sport must bc seen within the context of the Government’s total economic policy and decisions will bc made al the appropriate time within the framework of the 1976-77 Budget.

Growth Centres (Question No. 473)

Senator Colston:

asked the Minister for Environment, Housing and Community Development, upon notice:

  1. 1 ) Has the Minister received a letter from Mr John Bayly. Secretary of the Australian Council for Balanced Development, in which the Government is urged not to drop its support for growth centres.
  2. 2 ) Did Mr Bayly state in the Melbourne Age of 1 April 1976. that the Government’s apparent change of mind on this program could damage confidence in the private sector and set the program back a generation.
  3. Will the Minister agree to Mr Bayly’s request that he receive a deputation from the Australian Council for Balanced Development before taking any decision relating to the future of growth centres in Australia.
Senator Carrick:
LP

– The Acting Minister for Environment, Housing and Community Development has provided the following answer to the honourable senator’s question:

  1. 1 ) On 2 April 1976 1 received a letter from the President of the Australian Council for Balanced Development. Mr John J. Bayly, supporting the Growth Centres Program.
  2. Mr Bayly was reported in the Age of 1 April 1976 as saying that an apparent change of mind bv the Government on the Growth Centres Program could damage confidence in the private sector and set the program back by a generation. The report is, misleading where it refers to a change of mind on the pan of the Government. The position is. that the

Government has not yet determined its attitude in relation to Growth Centres. The Growth Centres Program is at present under consideration as pan of a wider examination of expenditure commitments and overall settlement policies.

  1. As I indicated in my reply to Mr Bayly, I will bc pleased to receive a deputation from the Austraiian Council for Balanced Development.

Australian Broadcasting Commission: Staff (Question No. 479)

Senator Primmer:

asked the Minister representing the Minister for Post and Telecommunications, upon notice:

  1. 1 ) What is the proportion of administrative staff to program staff within the Australian Broadcasting Commission.
  2. 2 ) What is the ratio of administrative expenditure to program expenditure.
  3. 3 ) Is revenue from Australian Broadcasting Commission productions sold to other outlets paid into the Commission ‘s funds or into Consolidated Revenue.
Senator Carrick:
LP

– The Minister for Post and Telecommunications has provided the following answer to the honourable senator’s question:

  1. 1 ) The proportion of staff included in the general overhead section represents 17.93 per cent of the total staff, compared with 82.07 per cent for the other staff.
  2. The proportion of expenditure under the heading of General Overhead Expenditure represents 22.63 per cent of the net expenditure compared with 77.37 per cent under other headings.
  3. Revenue from the sale of productions made by the ABC is paid into the Commission’s funds.

Immigration (Question No. 480)

Senator Sheil:
QUEENSLAND

asked the Minister representing the Minister for Immigration and Ethnic Affairs, upon notice:

  1. 1 ) What is the number of applications received from persons wishing to migrate to Australia from-

    1. a ) the United Kingdom, and
    2. European countries, since 1 January 1976.

  2. What number of applications have been approved from- t a ) the United Kingdom, and

    1. b) European countries, since I January 1976.
Senator Guilfoyle:
LP

-The Minister for Immigration and Ethnic Affairs has provided the following answer to the honourable senator’s question:

The following table lists the number of persons included in applications received and approved in-

a ) the United Kingdom, and

European countries for the quarter January to March* 1976. Approvals do not necessarily relate to new applicants shown in this period

Department of Repatriation: Expenditure (Question No. 487)

Senator Colston:

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

  1. 1 ) What was the total expenditure by the Department of Repatriation in 1974-75.
  2. What was the total amount outlaid for each of the following items in that year: (a) fees to specialists, (b) fees to medical practitioners, (c) fees to pathologists, (d) fees to radiologists, (e) salaries for Repatriation Hospital doctors, (f) salaries for Repatriation Hospital nurses, (g) salaries for other staff employed by Repatriation Hospitals, (h) funds for maintenance and operating expenses of Repatriation Hospitals, and (i) funds to ex-servicemen who are in receipt of disability allowances.
Senator Guilfoyle:
LP

– The Minister for Repatriation has supplied the following answer to the honourable senator’s question:

(1)$686,883,104.

(a) $5,915,000: (b) $1 1,775,000: (c)$399,000: (d) $595,000: (e)$4, 492,000: ( f) $12,579,000: (g) $38,085,000: ( h ) 1 6,704,000: ( i) $ 196,057,000.

National Parks (Question No. 531)

Senator Mulvihill:

asked the Minister for Environment, Housing and Community Development, upon notice:

  1. 1 ) What stage have plans reached towards proclaiming theKatherine Gorge. Finke Gorge and Simpson’s Gap as national parks.
  2. What are the proposed acreages of such national parks.
  3. 3 ) Is mineral exploration prohibited completely in such national parks.
  4. Were counter representations to the establishment of these national parks made by any Government department and/or private organisations, or individuals.
  5. What were the rationale for such objections and which persons or organisations lodged objections.
  6. Was the deadline for such objections set as 21 July 1 975: if so. were any objections received after that date and were they also considered.
Senator Carrick:
LP

– The acting Minister for Environment, Housing and Community Development has provided the following answer to the honourable senator’s question:

  1. Notices of report recommending declaration of Katherine Gorge. Finke Gorge and Simpson’s Gap as national parks under sub-section 7(2) of the Australian National Parks and Wildlife Conservation Act 1975 were published in the Australian Government Gazette on 20 May 1975 by the Acting Director of National Parks and Wildlife.

Representations in connection with the report were received.

The report, together with the representations and the Acting Director’s comments on the representations, were submitted to the Minister for Environment, Housing and Community Development for consideration by the Executive Council as per sub-section 7 ( 1 1 ) of the National Parks and Wildlife Conservation Act 1975.

  1. 2 ) The areas of the three Darks involved are:
  1. When a national park is proclaimed under subsection 7(2) of the National Parks and Wildlife Conservation Act no operations for the recovery of minerals shall be carried out unless with the approval of the GovernorGeneral and in accordance with the plan of management.
  2. Yes.
  3. As indicated under (1.3) the report, representations, and Acting Director’s comments on the representations, have been submitted to the Minister for Environment, Housing and Community Development for consideration by the Executive Council. The Executive Council has not yet considered the matter.
  4. The deadline for representations was indeed 21 July 1975 and no later representations were received.

Nature Conservation (Question No. 532)

Senator Mulvihill has asked the following question, upon notice:

1 ) Which State Governments have benefited from the $1.8m made available under States Grants (Nature Conservation) Act 1974.

What projects have been undertaken as the result of the grants.

Senator Carrick:
LP

– The Acting Minister for Environment, Housing and Community Development has provided the following answer to the honourable senator’s question:

  1. 1 ) All States have benefited from the $ 1 , 8m made available under the States Grants (Nature Conservation) Act 1974.
  2. ) The projects that have been concluded are as follows:

To acquire Sections 6, 7, 62 and 95 Hundred of MacGillivray comprising 2665 ha at Murrays Lagoon for addition to the Cape Gantheaume Conservation Park. Kangaroo Island, at a cost of $ 1 1 5, 104.

To acquire Sections 290, 329, 373 and 76 Hundred of Paringa comprising 228 ha for establishment of a Conservation Park on the Murray River at a cost of $52,200.

To resume the lease of Section 136 Hundred of Wangary comprising 3358 ha for addition to the Coffin Bay Peninsula National Park at a cost of $26,960.

Acquisitions for the balance of the $ 1. 8m appropriated for 1975-76 are at varying stages of completion, and as the honourable senator will appreciate I am not ina position to give details of these land purchases until all necessary processes have been completed by the State Governments.

Public Service: Employment of Persons of Aboriginal Descent (Question No. 143)

Senator Colston:

asked the Minister representing the Minister Assisting the Prime Minister in Public Service Matters, upon notice:

  1. 1 ) How many persons of Aboriginal descent were employed in each Commonwealth Department at 31 December 1975.
  2. Does the Government encourage Departments to employ persons of Aboriginal descent.
  3. 3 ) Has any such encouragement continued following the recent cutbacks in public service staffing arrangements.
Senator Carrick:
LP

– The Minister Assisting the Prime Minister in Public Service Matters has provided the following information for answer to the honourable senator’s question:

  1. 1 ) Statistics on persons of Aboriginal descent employed in each Commonwealth Department are not available at 3 1 December 1975. However, the Public Service Board conducts an annual survey of Aboriginals employed in the Public Service and the latest of these surveys provides statistics of Aboriginals employed in Commonwealth Departments as at 1 October 1975. For the purposes of the survey, the Department of Aboriginal Affairs’ definition of ‘Aboriginal’ was used. This defined ‘Aboriginal’ as: “… a person of Aboriginal or Torres Strait Islander descent who identifies as an Aboriginal or Islander and is accepted as such by the community with which he is associated’. These statistics are as follows:
  1. The matter of the employment by Departments of persons under the Public Service Act is a matter for the Public Service Board. The Board encourages the employment by Departments of persons of Aboriginal descent under its continuing policy to provide equality of employment opportunity in the Public Service within the context of the merit principle.

The Board’s specific policy framework towards the employment of Aboriginals in the Public Service is set out in two Public Service Board Circulars issued to Departments in February and August of 1973. The purpose of these circulars is to encourage the employment of Aboriginals in the Public Service and to outline measures designed to facilitate this.

  1. Within the context of the Government’s policy to reduce the size of the Public Service, encouragement for the employment of Aboriginal staff in the Public Service has continued and the Public Service Board’s circulars of February and August 1973 are still current.

Public Service: Retirement Age (Question No. 185)

Senator Rae:
TASMANIA

asked the Minister representing the Minister Assisting the Prime Minister in Public Service Matters, upon notice:

  1. 1 ) When was the last occasion the Commonwealth Public Service Board reviewed and reported on the suitability or otherwise of maintaining an upper age limit of 65 years for public servants.
  2. To whom did the Board report.
  3. From whom did the Board receive submissions beyond staff of the Board itself.
  4. In summary’- what did the Report say.
Senator Carrick:
LP

-The Minister Assisting the Prime Minister in Public Service Matters has provided the following answer to the honourable senator’s question:

The Public Service Board has informed me:

1) 1957.

2 ) and ( 3 ) The Board was represented on an Interdepartmental Committee on the Retiring Age. which reported on 8 July 1957 to the then Minister for Social Services on, among other matters, ‘The probable effects of raising the age of compulsory retirement . . .’. The Board was putting its own views as a Member of the Committee and did not seek submissions from other sources.

Its views were reproduced as Appendix IX to the Report, a copy of which is held in the Parliamentary Library.

The relevant part of the views expressed by the Board is. in summary: In the Board’s view, the present maximum age of 65 years preserves a reasonable balance between the claims of efficiency and of continued employment for older workers ‘.

Air Pollution (Question No. 190)

Senator Mulvihill:

asked the Minister for Environment, Housing and Community Development, upon notice:

What role does the Department of Environment, Housing and Community Development play in air pollution monitoring.

Senator Carrick:
LP

– The Acting Minister for Environment, Housing and Community Development has provided the following answer to the honourable senator’s question:

The need Ibr a national approach to air quality monitoring was first expressed in the Senate Select Committee Report on Air Pollution in 1969. The National Health and Medical Research Council and the Australian Transport Advisory Council have also emphasised the urgency for improved air quality monitoring.

This Government has accepted the responsibility to coordinate a nation-wide approach to air monitoring. The Commonwealth Government also has a responsibility to meet World Health Organisation Guidelines with regard to standards and approaches to monitoring. Conformity with agreed international standards and approaches to monitoring, as well as data collection on a national basis, are required if Australian authorities are to participate effectively in decisions on pollution control strategies.

Current metropolitan air monitoring programs in each State differ widely in terms of pollutants measured, method of measurement and capability for providing data on a comparable basis. In the past two years a joint working party under the Australian Environment Council has developed a co-ordinated program to update air monitoring facilities throughout Australia. The States and Territories through the Australian Environment Council agreed in April 1975 on the measures needed Ibr co-ordination and standardisation of methods of measurement, types of pollutants to be measured and formats for recording data. This has led to the strengthening of co-operation between Commonwealth and State Authorities in this Held.

My Department has a major role to play at Commonwealth level in fostering a nation-wide approach to air monitoring. As part of the current program, three mobile monitoring vans have already been acquired for loan to the States for inter-comparison of instruments, for study of siting of permanent monitoring stations and for special investigations. Preparations are also in hand to discharge data collection responsibilities.

Shipbuilding (Question No. 242)

Senator Colston:

asked the Minister for Industry and Commerce, upon notice:

  1. 1 ) Did the Assistant General Manager of the Broken Hill Proprietary Co. Lid’s Whyalla shipyard. Mr Ross Hawke, claim that the whole future of the shipyard is in doubt.
  2. Has the Whyalla yard only enough orders to carry it through until late in 1977.
  3. Will the yard commence scaling down in its planning and design sections later this year.
  4. Is the Government giving urgent consideration to bolstering the Australian shipbuilding industry and. in particular the Whyalla yard, as the jobs of 2800 men are involved.
  5. Is the Minister considering the reintroduction of restrictions on foreign made vessels working Australian coastal runs, or the payment of subsidies to the Australian shipbuilding industry.
Senator Cotton:
LP

– The answer to the honourable senator’s question is as follows:

  1. 1 ) In recent months I have met senior executives of the Broken Hill Proprietary Co. Ltd to discuss the problems confronting the Whyalla shipyard. The company has informed me that the future of Whyalla shipyard is in doubt.
  2. 1 understand that this is the position.
  3. I have been informed that, unless new orders are received, scaling down is expected.
  4. and (5) The Government is reviewing the assistance arrangements for the Australian shipbuilding industry. The outcome of the review will be announced when a decision has been reached.

Immigration (Question No. 132)

Senator Colston:

asked the Minister representing the Minister for Immigration and Ethnic Affairs, upon notice:

  1. 1 ) Will the Minister list, by country of origin, the number of persons who (a) applied, (b) were approved, (c) were rejected for entry into Australia, in the months of December 1975. January 1976 and February 1976.
  2. How many persons arrived in Australia as (a) visitors and (b) residents in the months of December 1975. January 1976 and February 1976.
Senator Guilfoyle:
LP

– The Minister for Immigration and Ethnic Affairs has provided the following answer to the honourable senator’s question:

  1. 1 ) The attached table lists the numbers of persons who applied, were approved and were rejected for migrant entry to Australia by country of processing in the months of December 1975. January 1976 and February 1976.
  2. For the months of December 1975. January 1976 and February 1976 figures are not yet available separately Ibr visitor arrivals and residents arrivals as these are still being processed by the Australian Bureau of Statistics. However, preliminary estimates (subject to revision) are available separately for settlers and other arrivals. The latter group includes both visitor arrivals and Australian residents returning.

Cite as: Australia, Senate, Debates, 20 May 1976, viewed 22 October 2017, <http://historichansard.net/senate/1976/19760520_senate_30_s68/>.

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