House of Representatives
19 November 1935

14th Parliament · 1st Session



Mr. Speaker (Hon. G. J. Bell)took the chair at 3 p.m., and read prayers.

page 1733

PRIVILEGE

Mr BRENNAN:
Minister without portfolio assisting the Minister for Commerce · Batman · UAP

– I vise to a question of privilege in connexion with a matter which I conceive to be an invasion of the privileges of Parliament. In order that the business of the House may be delayed as little as possible, I shall state it as succinctly as Ican. I propose to conclude by submitting a motion founded on the provisions of the Standing Orders of this House, and more specifically in the terms employed in the eleventh edition of Sir Erskine May’s Parliamentary Practice, particularly at pages 71 and 72, and generally elsewhere.

The matter arises out of two incidents which occurred in committee, one on the 7th November and theother on the 14thNovember last. It refers to the fiction of the Chairman ofCommittees (Mr. Prowse) in reflecting uponan honorable member improperly, in terms that are notin accordance with the facts, and in violation of the privileges of Parliament.

The short history of the matter is, thatlast Thursday evening the Chairman of Committees took certain disciplinary measures against an honorable member of this House. That honorable member in due course apologized. The Chairman of Committers then said-

I named an honorable member fromthis choir last week. He offered a humble apology, and its acceptance wasrecommended by the Chair, but that honorable member proceeded to impede the progress of business after his apology had been accepted.

Mr.Nairn. -Soyou did.

Mr.BRENNAN.- The latter part of that statement, referring as it does to me, is absolutely without even a scintilla of foundation.

Mr BRENNAN:

-I am aware, sir, of the popular fallacy well known to lawyers, that it is always safe to slander a person by innuendo so long as the name of that person is not mentioned. The words complained of could refer only to me. Having had the misfortune to be named in circumstances, as I think - well, I shall not refer to the circumstances having had the misfortune to bc named, a happening that rarely occurs to mo - twice only, I think, in a parliamentary experience of 25 years, I apologized, and the apology was accepted. In accordance with the practice, if not the settled rules and regulations of the House, and certainly in accordance with the good taste generally displayed by honorable members, the matter should never have been referred to again. I have said that there was not a scintilla of foundation or justification for the statement that I attempted to impede the progress of business after I had apologized. I may add, sir, that” the record bears me out in that assertion; nothing will be found in it to indicate the slightest disorder on my part. It is true, sir - and this is a very important point to be observed ‘by the uninitiated who interject, possibly by reason of want of knowledge and lack of experience in these matters - that I moved a motion, that motion being that the honorable member who was then addressing the Chair “ be not further heard “. I acted within my rights, I suggest, in moving that motion. I submitted it without any sign of disorder, and without employing any words other than were actually necessary. After I had apologized, until I submitted that motion I said and did nothing whatever. I submit that I was obviously within my rights, and that I acted in compliance with the Standing Orders, lt is worthy of mention, sir, that the Chairman of Committees, who has made this unfounded charge against me, accepted the motion without demur, and put it to the committee. It was divided upon, and I am happy to state that every member of the Opposition then in the chamber, including my leader, supported it. T am always prepared, as one must be, to submit to the discipline of this House, even though in my judgment, at any particular time, it may be arbitrarily or vindictively enforced. I am not alleging that it, has been, but am merely stating that I feel myself bound in any circumstances . to sui,mit to it. But I am not prepared to submit without protest to aspersions on my character which are unsupported by fact. I am not habitually, or even frequently, disorderly; and I am just as jealous of my reputation in this House, of which I have been a member for a much longer period than has the Chairman of Committees, as that honorable gentleman is of’ his; perhaps more. I; suggest that the revival of the matter at all was in bad taste, and against the practice of the House; but possibly that is a question for the Chairman to decide for himself. The real importance of the matter, sir, as it affects the House as a whole, is that the Chairman of Committees, having made a foundation of his unfounded charge against me, proceeded to lay it down as a canon of practice that in the future he would exercise greater discipline upon honorable members because of what I was .incorrectly alleged to have done. In that way the Chairman of Committees threatened to set up a stricter standard of conduct for honorable members generally. I now move -

That in tho opinion of this House, the Chairman of Committees, Mr. J. H. Prowse, on the 14th instant, offended against the privileges of the Parliament by reflecting from his place, as Chairman of Committees, on the conduct in Parliament of an honorable member in terms which were not in accordance with the facts nor on other grounds justifiable. 1 have to add -that, keenly as I feel this matter, if the honorable gentleman, who occupies a responsible position which requires him to maintain order in committee, will even now show such respect for order and for my good name as to rise in his place aud express regret and apologize to me - even though this motion will no longer bo within my disposal, but will be in the hands of the House - I shall be prepared to accept his apology with better grace than ‘he displayed when he accepted mine. Having said that, I leave the matter with the House, conscious that if 1 abuse my position by formulating a charge against the Chairman of Committees, I am answerable to this House, just as the honorable member is answerable. I have no fear, and I ask no favour in this matter.

Mr. BAKER (Griffith) [3.13.J.- I second tho mot-ion, which I hope will bo carried in the interests, not only of the

Opposition, but also of the Parliament as a whole, and for the protection of the rights of members. An examination of the Ilansard report of the proceedings of Parliament on the day to which reference has been made will show that the honorable member for Batman (Mr. Brennan) merely raised a number of points of order under the Standing Orders of this House. The honorable member has had many years of experience in this Parliament, and even those opposed to him politically must admit that during those years the honorable member has rendered valuable service to Australia and has always conducted himself decorously. Because of his long experience, and also of his legal knowledge, the honorable member for Batman is probably the best authority on the Standing Orders sitting on. this side of the House. It would be no exaggeration to say that he is more conversant with the Standing Orders than axe most of the members supporting the Government. A most unfortunate state of affairs will arise if members are to be castigated for having taken action which they believed to be in the best interests of the House. The incident to which reference was made by the Chairman of Committees, in the absence of the lion oracle member for Batman, was thought to he closed. Hansard records that the speech of the honorable member for Batman was largely a series of extracts from various standing orders, and I am as yet unaware of any standing order which provides that the reading of a standing order is out of order. Standing Order 262bc reads -

A motion without notice may be made that a member who is speaking “be not further heard “ and such question shall he put forthwith and decided without amendment or debate.

I submit that any honorable member may, at any time while the House is sitting, move that motion, irrespective of whether or not he has previously been admonished by the Chair. In the interests of the Parliament, which is the highest court in the land, in order to safeguard the privileges of its members, all honorable members, irrespective of their party political differences, Should support the motion.

Mr PROWSE:
Forrest

.- In speaking to this motion, I am somewhat at a disadvantage, inasmuch as the honorable member far Batman (Mr. Brennan) did not intimate to me that he intended to raise a matter of privilege.

Mr Brennan:

– I did not wait until the honorable member had left Canberra.

Mr. PROWSE. Honorable members who were present in the committee when the incident, to which reference has been made, took place will realize that the mover of the motion now before the House has not stated the position correctly. There was nothing splenetic in my reference to a previous incident. I had’ named another honorable member, who thereupon sought to offer an apology and escape the censure of the committee. In accepting .his apology, I informed the committee that it would not be wise to make a practice of allowing a member to escape punishment when he had gone to such lengths as to justify his -being named. I also intimated that the immediate past Speaker of this House had made it clear that, w’hen he named a member, there could be no escape from the consequences. I did not wish it to be understood that the Chair could exercise leniency to the extent of sacrificing the dignity of the committee. I did not mention the honorable member for Batman, and I do not think that I said more than was within the knowledge of all members who had been present in the committee and had seen what really happened on the earlier occasion. In order to give strength to my remarks, I referred to “ an honorable member “ who had been named the previous week. The honorable member for Batman now says that he merely moved “ That the -honorable member for Barker (Mr. Archie Cameron) be not further heard.” The Chair, as well as those honorable members who were present at the time, know that that was not all the honorable member did. I suggest that, had I acted strictly in accordance with the Standing Orders, I could have named the honorable member again. I shall say no more at the moment except that I was very sincere in what I said at the time. My only object was to carry out my duty as Chairman of Committees, an honour which this House has conferred upon me, and to maintain the dignity of the Chair. The honorable member for Batman (Mr. Brennan) knows, as all other honorable members know, that, according to the

Standing Orders, all interjections are disorderly. In fact, on that particular occasion, he drew attention to Standing Order 58, which sets out, in effect, ‘that all interjections are disorderly, yet proceeded to castigate the Chair along the lines indicated and to make disorderly interjections; I thereupon named him under the very Standing Order to which he himself drew my attention. I am quite content to leave my position in this matter rest in the hands of honorable members.

Mr SCULLIN:
Yarra

.- I do not propose to say much on this matter; indeed, I will not touch at all on the incident which occurred prior to the naming of the honorable member for Batman (Mr. Brennan), in respect of the conduct of either the honorable member or the Chairman of Committees. However, I emphasize that it is not correct to say that the honorable member for Batman, after apologizing to the Chair, did anything disorderly in committee. In this respect I think the memory of the Chairman of Committees is at fault. I pride myself on having an accurate memory. I was present at that particular time, and I challenge the Chairman of Committees, or any one, to indicate a single sentence which the honorable member for Batman uttered at that stage of the proceedings, that would justly bring down upon his head the charge which has been made. I say nothing whatever regarding the incident that occurred before the honorable member was named. I say that after his apology was accepted >the honorable member for Batman uttered no words beyond those contained in the motion which he moved: “That the member for Barker be not further heard”. I am prepared to stake my reputation that what I have said is the truth.

Mr LYONS:
Prime Minister · Wilmot · UAP

– Like most honorable members I was not aware that this matter was to be raised. A short time before the House met I was given to understand that some question of privilege would be raised, but had no knowledge whatever of its nature. “We cannot settle this matter on party lines. It should be considered on its merits. I feel sure, however, that debate at this juncture ‘would not bring out the actual facts, because a number of honorable members now present were, like myself, absent at the time the incident occurred. I suggest that this debate should be adjourned. Such a course would give honorable members more time for reflection and to examine the actual facts associated with this matter, and would not prevent this discussion being continued at a later date. I move -

That the debate be now adjourned.

Mr SPEAKER:

– The relevant standing orders are -

Speaking “ To Order “ or Privilege. 283. Any Member may rise to speak “ to order or upon a matter of Privilege suddenly arising.

Precedence to Question of Order or Privilege. 284. All questions of Order and matters of Privilege at any time arising shall, until decided, suspend the consideration and decision of every other question.

On previous occasions the question has been raised in this House whether a debate on a motion of privilege can be adjourned, and there have been instances where such debates have been adjourned. However, in view of the Standing Orders which I have just read, and which cannot very well be misunderstood, I am of the opinion that leave of the House should be given to submit the motion.

Leave granted; motion agreed to, debated adjourned.

page 1736

HOUR OF MEETING

Motion (by Mr. Lyons) agreed to -

That the House at its rising, adjourn until 2.30 p.m. to-morrow.

page 1736

QUESTION

AUSTRALIAN MEAT SHIPMENTS

Mr E F HARRISON:
BENDIGO, VICTORIA · UAP

– Has the attention of the Minister for Commerce been drawn to statements of the honorable member for Indi (Mr. Hutchinson), to the effect that methods of marketing Australian meat in England urgently need to be improved, that it was a depressing experience for him to see Australian meat alongside Argentine meat in the Smithfield market, that some Australian chilled meat was far below the standard quality, and that complaints were received from buyers concerning the variation of quality of Australian mutton and lamb? If so, Joes the Assistant Minister consider that these remarks con- firm the statement of Sir Stanley Argyle on the same matter, or the Minister’s own recent observations in England? If necessary will the department take steps to rectify this position?

Mr THORBY:
Minister without portfolio assisting the Minister for Commerce · CALARE, NEW SOUTH WALES · CP

– In the absence of the Minister my attention was directed to the statement of the honorable member for Indi as reported in the press. I am not in a position to say whether or not the honorable member has been correctly reported, but his remarks do not agree with my opinion on the matters referred to following my observations of methods of marketing of Australian meat in the United Kingdom. Criticism may be justified in isolated cases, but speaking generally it cannot be applied to conditions in the Smithfield market as a whole.

Mr CLARK:
DARLING, NEW SOUTH WALES

– Has the Minister seen the reported statement of Mr. A. Gray, a retired grazier of central Queensland, on his return from England yesterday than ‘’ On delivery at one of the biggestmarkets wc saw meat dumped on the pavement outside”? Has the Minister’s attention also been drawn to a statement by Mr. Gray that lie was disgusted at the way Australian mutton was unloaded at Southhampton? Will the Minister inquire into the truth of these statements?

Mr THORBY:

– My attention has been directed to Mr. Gray’s statement, but I cannot say whether or not his remarks were correctly reported. The statement which appears in the press is, in my opinion, not correct. I saw Australian mutton unloaded at various ports of England and went to some trouble to inquire into the methods in vogue. On more than one occasion I complimented the shipping authorities upon the manner in which they handled Australian produce upon its arrival in England.

page 1737

QUESTION

AUDITOR-GENERAL’S REPORT

Statement Regarding Pensioners

Mr HAWKER:
WAKEFIELD, SOUTH AUSTRALIA

– I ask the Treasurer whether the Government has specifically considered the allegations in the AuditorGeneral’s report reflecting upon the worthiness of certain people in receipt of invalid and old-age pensions, and whether it, is the intention of the Government .to institute an inquiry of any kind in order to ascertain whether the administration of the Pensions Act, or the act itself, needs overhaul ting to prevent abuses of our pensions system?

Mr CASEY:
Treasurer · CORIO, VICTORIA · UAP

– I have read nothing in the report of the Auditor-General in the way of evidence to lead me to believe that any special inquiry is necessary into our pensions system. The existing methods of inquiry, investigation and checking are quite adequate to protect the revenue.

page 1737

QUESTION

WHEAT INDUSTRY

Mr LAZZARINI:
WERRIWA, NEW SOUTH WALES

– I ask the Minister representing the Minister for CoInmerce whether the plan agreed to at the recent conference to bring into effect a home-consumption price for wheat will be implemented in time to apply to the coming wheat harvest? If not, will the honorable member indicate what means, if any, will be adopted to assist the wheat-growers in connexion with the approaching harvest?

Mr THORBY:
CP

– A full reply to a similar question has already been furnished to the Leader of the Opposition.

Mr GREGORY:
SWAN, WESTERN AUSTRALIA

– In view of the fact that I received a reply to a telegram I sent to a member of the Parliament of Western Australia urging the need for expedition in connexion with the introduction of legislation to deal with thecoming wheat harvest, to the effect that no action was being taken in Western Australia pending a decision by the Commonwealth, I ask the Minister representing the Minister for Commerce, whether he is aware of any hesitation on the part of the Government of Western Australia to introduce legislation to implement the plan agreed to at the recent conference, or of any decision required by the Commonwealth, before legislation can be dealt with by the State Parliaments?

Mr THORBY:

– The Department of Commerce has no definite information from Western Australia on this subject. Legislation has already been introduced in the Parliaments of Queensland and New South Wales to implement the plan agreed upon, and an assurance has been received that similar legislation will be introduced, in the Victorian Parliament without delay. The Commonwealth Government has already submitted its measure to this House.

page 1738

SIR CHARLES KINGSFORD SMITH

Mr LYONS:
Prime Minister · Wilmot · UAP

by leave - I desire to inform honorable members that a wireless message was received last night from Air-Commodore Sydney Smith, Air Officer Commanding at Singapore, expressing the opinion that further air search for Sir Charles Kingsford Smith and Mr. Pethybridge is not likely to be of value. Two Royal Air Force flying bouts and nine bomber aircraft have been employed continuously during the past ten days on this duty, and Qantas aircraft and an aeroplane piloted by Mr. Melrose have also assisted on various days. All possible courses between Rangoon and Singapore, including all islands off the west coast of Malaya, have been thoroughly searched many times, and many nights have been made over the jungle areas. In these circumstances, the Government has regretfully been forced to agree with Air-Commodore Smith that no useful object would now be served in sending any special aircraft from Australia to take part in the search. Air-Commodore Smith has informed the Government that hs proposes to continue the ground search organization in the difficult country for a further period as he considers that this method is more likely to yield results. The Qantas reserve aircraft at Singapore will be placed at his disposal to aid ground parties or to perform any other special duty on which it would usefully be employed.

The following message is being despatched to-day to Air-Commodore Smith : -

On behalf of people of Australia, Commonwealth Government desire to express their grateful thanks for the magnificent work carried out under difficult conditions by members of the Boya I Air Force under your command, in search for Sir Charles Kingsford Smith and Mr. Pethybridge, and for the sympathetic interest yon personally have shown in meeting the Government’s wishes and in organizing tho comprehensive air and ground searches that have been undertaken in the past ten days. As all likely areas and possible courses have now been covered so thoroughly, the Commonwealth Government with great regret, agree your view that further searches by Royal Air Force aircraft would serve no useful purpose. They are grateful, however, .that you propose continuing ground search organization for a further period and trust that your efforts will meet with success. Qantas reserve aircraft will be available you for any special duty on which it could usefully be employed.

page 1738

QUESTION

REPATRIATION

Mr GANDER:
REID, NEW SOUTH WALES

– I ask the Prime Minister when the Government proposes to introduce the promised bill to amend the Repatriation Act and whether it is intended to pass it before the Christmas recess ?

Mr LYONS:
UAP

– The bill will be brought up to-morrow and the Government hopes that it will be passed before Parliament adjourns for the Christmas recess.

page 1738

QUESTION

DAIRYING INDUSTRY

Mr FISKEN:
BALLAARAT, VICTORIA

– I ask the Minister representing the Minister for Commerce whether the Government is taking any steps to reconstitute the Dairy Produce Export Control Board and the Australian Dairy Council? If no decision has been made in regard to the matter, when may honorable members expect a pronouncement upon it?

Mr THORBY:
CP

– The Government has considered this subject, but finality has not been reached. An early pronouncement will be made, however, in connexion with the reconstitution of the Dairy Produce Export Control Board.

page 1738

QUESTION

TRADE TREATIES

Mr FORDE:
CAPRICORNIA, QUEENSLAND

– I ask the Prime Minister whether he will intimate what powers were given by Cabinet to the Minister directing negotiations for trade treaties (Sir Henry Gullett) ? Was the Minister authorized to commit Australia to definite undertakings, or was he asked to report to Cabinet before Australia was finally committed in respect of trade treaties with any overseas countries? Will the right honorable member also state definitely when the Minister will arrive in Australia and whether he has yet committed this country in respect of any trade treaties with European colin tries?

Mr LYONS:
UAP

– On a previous occasion I dealt with every phase of tha question which has been raised by the honorable member. I pointed out that the Minister directing negotiations for trade treaties was on his way back to Australia, and would arrive here very shortly. The honorable member asks what authority was vested in that Minister? He was given authority to negotiate in respect of trade treaties, but not to finalize any. The authority to complete and finalize treaties must always rest with the Cabinet. No treaties have been concluded, and nonewill be until the Minister presents his reports to Cabinet. Decisions on those reports will be made by the Cabinet.

page 1739

QUESTION

ITALO-ABYSSINIAN DISPUTE

Italian Protest Against Sanctions

Mr ARCHIE CAMERON:
BARKER, SOUTH AUSTRALIA · CP; LP from 1944; LCL from 1951; LP from 1954

– Has any reply been made to the Italian note of protest against the imposition of sanctions?

Mr LYONS:
UAP

– Only a formal acknowledgment of the receipt of the note from the Italian Government has been forwarded. As in the case of Great Britain, a considered reply is being prepared.

page 1739

QUESTION

S T AND ARDIZATION OF RAILWAY GAUGES

Mr HOLLOWAY:
MELBOURNE, VICTORIA

– Are negotiations procceeding between Commonwealth and State Ministers in connexion with an early start with the standardization of railway gauges?

Mr LYONS:
UAP

– State Ministers attending the recent meeting of the Loan Council asked that a Premiers Conference should be held at the beginning of February next, and I am informed by the Minister for’ the Interior that the question of the standardization of railway gauges will be brought before that conference.

page 1739

QUESTION

MONETARY AND BANKING COMMISSION

Mr BEASLEY:
WEST SYDNEY, NEW SOUTH WALES

– Has the Government given any consideration to placing a time limit on the deliberations of the royal commission appointed to inquire into the monetary and banking systems of this country?

Mr LYONS:
UAP

– I think it would be somewhat difficult to direct a. commission of such a character as to how long it should take in its deliberations in respect of the important questions with which it will be called upon to deal. Once a com mission of the kind has been appointed, and great care has been taken to select appropriate persons to conduct the inquiry, such a matter should be left in its hands. I feel that if it could not be trusted in regard to the time to be taken in its deliberations, it could scarcely be trusted to handle the big question referred to it.

page 1739

PAPERS

The following papers were presented : -

Defence Act - Regulations Amended - Statutory Rules 1935, No. 109.

Naval Defence Act - Regulations Amended - Statutory Rules 1935, No. 110.

Navigation Act - Regulations Amended, &c. -Statutory Rules 1935, Nos. 107, 108.

page 1739

ORANGE BOUNTY BILL 1935

Third Reading

Motion (by Mr. Thorby) proposed -

That the bill be now read a third time.

Mr CURTIN:
Fremantle

.- In all probability this bill would have been disposed of on Friday afternoon but for what I can only describe as an unfortunate proceeding on the part of the Minister for Defence (Mr. Parkhill) at the moment in charge of the House. Across the table he gave me the definite assurance that, after the honorable member for Hunter (Mr. James), who had been discussing a proposed amendment which, from the viewpoint of the Opposition, involved a matter of principle, had resumed his seat he would immediately report progress. But, instead of doing so, he did not rise at all. The Chairman immediately put the proposed amendment, and I was the only member present who supported it. The honorable member for Hunter on concluding his remarks had left the chamber. As there was only one “Aye “ there was no division, although honorable members on this side desired that the amendment should be divided upon. Had it not been for the definite statement of the Minister for Defence that he would report progress immediately the honorable member for Hunter resumed his seat, I would have directed the attention of the Chairman to the state of the committee, the committee would ha’ve been counted out, and the bill wouldhave lapsed.

Mr. SPEAKER (Hon. G. J. Bell).The honorable member is not in order in saying that the committee would have been counted out.

Mr CURTIN:

– I amend my remarks by saying that it may have been. It was to avoid that possibility that the Minister for Defence had agreed to report progress. Subsequently after the House had ad journed, ho made an explanation to me. which I had hoped he would have made in the House to-day. I express great regret that, owing to the failure of the Minister to honour his undertaking, my party was deprived of an opportunity to divide the committee on the amendment moved by the honorable member for Hunter.

Mr LYONS:
Prime Minister · WILMOT, TASMANIA · ALP; UAP from 1931

– I regret that there has been any misunderstanding in regard to the matter. I was not present in the Committee at the time, and the Minister for Defence (Mr. Parkhill) was in charge. But there must have been some misunderstanding of the situation on his part, because honorable members on both sides recognize that whenever that Minister gives an undertaking he invariably carries it out. I shall bring the remarks of the Loader of the Opposition under the notice of the Minister for Defence who, no doubt, will explain the position from his point of view.

Mr JAMES:
Hunter

– I also wish to enter a protest against the procedure followed by the Minister for Defence (Mr. Parkhill), more particularly because it was my amendment that was under discussion at the time. Immediately I had finished speaking to the amendment I was called out of the House. It is difficult to escape the conclusion that something was put over the Opposition by the Minister, and it has placed me in an unfortunate position.

Mr Lyons:

– I rise to a point of order. The honorable member has suggested that the Minister for Defence, who is not even here to reply, “ put something over “ the Opposition. I ask that the honorable member be requested to withdraw those words.

Mr SPEAKER:

– The Leader of the Opposition (Mr. Curtin) has told the House the reasons why he objected to the third reading of the bill being taken on the last day of the sitting, and he was in order in his remarks. The honorable member for Hunter (Mr. James) has gone much further, and has stated that the Minister who was in charge of the House at the time his amendment was discussed, “ put something over “ the Opposition. That remark was out of order, and the Prime Minister (Mr. Lyons) has asked that it be withdrawn. I must request the honorable member to withdraw it.

Mr JAMES:

– I withdraw the statement. I did not intend to convey the impression that the Minister for Defence had deliberately put something over the Opposition, but I could not help thinking, having regard to the general laughter from Government supporters

Mr SPEAKER:

– Order !

Question resolved in the affirmative.

Bill read a third time.

page 1740

MEAT EXPORT CONTROL BILL 1935

Bill returned from the Senate with amendments.

In committee (Consideration of Senate’s amendments) :

Clause 5 -

1 ) For the purposes of this act, there shall be an Australian Meat Board.

The members appointed to represent publicly-owned abattoirs and freezing works which deal with meat for export shall be the persons for the time being holding the following positions: -

The Metropolitan Meat Industry Commissioner in the State of New South Wales;

The Chairman, Queensland Meat Industry Board ;

The General Manager, Government Produce Department, State of South Australia;

The General Manager, Western Australian Government Meat Works, Wyndham.

Senate’s amendment -

Omit sub-clause 10, insert the following new sub-clause : - “ (10) The members appointed to represent publicly-owned abattoirs and freezing works which deal with meat for export shall be -

General Manager, Government Produce Department, State of South Australia, or in the event of that person ceasing to hold that position or ceasing in pursuance of this section to hold office as a member of the board, such person as is appointed by the Governor-General on the nomination of the Metropolitan and Export Abattoirs Board, in the State of South Australia;

Each member shall hold office during the pleasure of the Governor-General.”

Mr THORBY:
Assistant Minister for Commerce · Calare · CP

– I move -

That the amendment be agreed to.

The amendment will not have the effect of providing any additional representation on the hoard. Its effect is that the person at present holding the position of manager of the Government Produce Department in South Australia will represent that State on the board, but, in the event of his resigning or ceasing to hold the position, his successor shall bo the person nominated by the Metropolitan and Export Abattoirs Board in the State of South Australia.

Mr Rosevear:

– In the event of tha Governor-General dismissing a member of theboard nominated in the manner provided in this sub-clause, how will his place be filled? Although he may be dismissed from the board, he may still occupy his former position underthe State authority.

Mr THORBY:

– The bill provides that the Minister may appoint a person to fill any vacancy.

Mr ROSEVEAR:
Dalley

.- Instead of making the position more definite, the Senate’s amendment, in certain circumstances, makes it more difficult. Sub-clause 10 ofthe bill clearly states that the members appointed to represent publicly-owned abattoirs and freezing works on the Commonwealth Meat Export Control Board “ shall be the persons for the time being holding the following positions : “. Then follows the list of specified positions which entitle certain persons to membership of theboard. The sub-clause, as worded when it left the House of Representatives, is open to the same difficulties as I can foresee in. the amendment. Each of the specified persons is to he the nominee and the appointee of the various bodies mentioned. Sub-clause 15 of clause 5 reads -

  1. Members of the board, other than the Goverment representative, may be removed from office by the Governor-General on the recommendation of the board.

If, in exercise of that authority, the Governor-General decided to dispense with the services on the board of say, the Metropolitan Meat Industry Commissioner in New South Wales and the Government of New South Wales failed to make a change in the occupancy of the position of its meat commissioner, the State of New South Wales would remain unrepresented on the board. It means that there are “two conflicting authorities. In the first place, the meat commissioner is the servant of the State Government, but the periodof his office as a member of the Meat Board will also be subject to the determination of the GovernorGeneral. In one sub-clause, the bill gives power of dismissal to the GovernorGeneral, but another sub-clause limits the personnel of the board to specific persons. There is no power to appoint a successor to any State representative discharged from the service of the Meat Export Control Board.

Mr THORBY:
Assistant Minister for Commerce · Calare · CP

– The honorable member has directed attention to something that possibly could happen but it is very improbable that it would. The question that has been raised is what would be done to replace a representative of an institution who might happen to be dismissed from the board, but I do not doubt that, if such a thing happened, reference would be made back to the State authorities of the offence or neglect which was considered sufficient to justify his removal from the board. In all probability, the offence or neglect would be sufficient to justify his removal from his position in the State Service. Unless, however, there were very sound reasons for removing a representative of the description cited, no action would be taken to declare a seat vacant. If it did happen, however, under sub-clause 16 of clause 5, the Governor-General has power to nominate some one else to fill the position for the balance of the terra for which the discharged officer had been appointed. That sub-clause provides -

On tho occurrence of any vacancy in the membership of the board by reason of the death, resignation or removal from office of any member (other than a member holding one of the positions specified in sub-section (10.) of this section) the Governor-General may appoint a person to fill the vacancy, and any parson so appointed (other .than the Government Representative) shall hold office for the residue of the term of the member whose place became vacant:

Provided that where the member whose place became vacant was appointed upon the nomination of any body of persons or any association, the person appointed to fill the vacancy shall, subject to sub-section (13.) of this section, be appointed upon the nomination of that body of persons or that association.

I cannot visualize, therefore, any difficulties arising from the procedure, proposed to be adopted. Meanwhile, the only question that I have asked the House to’ agree to is an amendment submitted which provides for the appointment of representatives under sub-clause 10 of clause 5.

Mr BEASLEY:
West Sydney

– The sub-clause which the Minister quoted does not deal with sub-clause 10 which the committee is asked to amend. Sub-clause 16 contains the words “ other than a member holding one of the positions “ referred to in sub-clause 10.

Mr Thorby:

– I see the point.

Mr BEASLEY:

– The honorable member for Dalley (Mr. Rosevear) has raised a most important point regarding the representation of State undertakings. When the committee was discussing another very important amendment submitted by the Opposition it was argued that the representation which it claimed should be given to an important section of the industry, namely the employees, would, to a large extent, be provided for under the sub-clause with which we are now dealing. It was said that freezing works and abattoirs, where the great bulk of the workers is engaged, would get some voice in the conduct of the board’s affairs and thereby provide a channel of representation for the workers. It may quite easily happen in the discussion of the circumstances regarding the conduct of the export of meat from publicly-owned undertakings that opinions expressed by a representative of one of those organizations may conflict with opinions expressed by others who have personal interests to serve. It is possible that the member whose opinions conflict with those of private interests may, as the result of agitation, be removed from office without the consent of the State authorities. The Governor-General should have no right by exercising such authority to be able to remove from office representatives of large public undertakings. It is conceivable that, if he did so, he would be acting in opposition to the desires of the State governments concerned. After all, the board will be the direct channel through which the State governments will have a voice regarding the exportation of meat. The point raised is vital, and we should be supported by all honorable members, irrespective of the States from which they come.

Mr THORBY:
Assistant Minister for Commerce · Calare · CP

– The aspect mentioned by the honorable member for West Sydney (Mr. Beasley), had escaped my notice. I quite agree that the clause quoted by me does not cover the nominees of public institutions such as the abattoirs of the States to which reference is made in clause 5. Subclause 13 of that clause states that where any member is required to be appointed pursuant to a nomina tion by any association or body of persons, and no nomination is received by the Minister on or before the time fixed, the GovernorGeneral may appoint such person as he thinks fit. It seems that there is no provision in the bill other than the powers conferred on the GovernorGeneral, for the filling of a vacancy in the event of the removal from office of a member of the board representing publicly-owned abattoirs and freezing works which deal with meat for export.

Mr RIORDAN:
KENNEDY, QUEENSLAND · ALP; FLP from 1931

.- The Minister said that the amendment did not, effect the principle of the bill, but I contend that it violates the right of the State authorities to a voice as to appointments to be made to the board.

Mr THORBY:

– The amendment has no bearing upon the matter mentioned by the honorable member for Dalley (Mr. Rosevear), who has raised an entirely new point.

Mr RIORDAN:
KENNEDY, QUEENSLAND · ALP; FLP from 1931

– Why should the general manager of the Government Produce Department of South Australia be specially selected for appointment to the board?

Mr Thorby:

– That was agreed to by the Agricultural Council, and the Government of South Australia approves of the nomination. In this instance, the nominee is Mr. Pope.

Mr RIORDAN:
KENNEDY, QUEENSLAND · ALP; FLP from 1931

– What would happen inthe event of Mr. Pope’s retirement from the position?

Mr Thorby:

– His successor would be nominated by the Abattoirs Board of South Australia.

Mr RIORDAN:
KENNEDY, QUEENSLAND · ALP; FLP from 1931

– I fear that an appointment might be made to the meat board of a person not connected with the export trade. There must be a special reason, which has not been divulged, why Mr. Pope has been singled out for this position.

Mr.Fisken. - He is the best man available.

Mr RIORDAN:
KENNEDY, QUEENSLAND · ALP; FLP from 1931

– Some persons may consider that he is the best authority in the Commonwealth on beef export, but I differ from thorn. Associated with the Ministers who attended the meat conference in London was the chairman of the Queensland Meat Industry Board, and he was prominent throughout the negotiations regarding chilled meat. He established the organization provided in Queensland for the control of the industry, and has directed his attention to the improvement of the lot of stockproducers in that State. Therefore, the majority of the meat producers in Queensland would hold a different view from that ofthose in South Australia as to the highest meat authority in the Commonwealth. In the event of Mr. Pope ceasing to be a member of the board, why should the nomination to fill the vacancy be made by a body in South Australia? There appears to bo a set of special circumstances in South Australia which the Minister has not explained to the committee, but with which, I am sure, the honorable member for Wakefield (Mr. Hawker), who moved the amendment, is familiar. I should therefore like to hear the opinion of that honorable member on the amendment made by the Senate.

Mr HAWKER:
Wakefield

.- Until quite recently the freezing works at Port Adelaide was a section of the Government Produce Department, of which Mr. Pope is the general manager. The Government Produce Department not only bought livestock on its own account and had them slaughtered and exported, but also slaughtered stock on behalf of a number of private exporters. Recently, however, the constitution of Municipal Abattoirs was altered by act of Parliament and they were combined with the freezing works under one management. Mr. Pope then ceased to be the manager of the export freezing works at Port Adelaide, which handles the bulk of the slaughtering and freezing of meat for export, but his department still retained control of the much smaller government freezing works at Port Lincoln. In my opinion he is the most acceptable man to represent the slaughtering and export interests of South Australia on the Australian Meat Export Control Board, but his department, although it has some interest in the control and supervision of meat for export wherever it is slaughtered, no longer has the management of the big freezing plant atPort Adelaide. I do not know who will be. the successor of Mr. Pope. Actually, it is now more directly concerned with dairy produce and fruit than with meat. In view of these circumstances I moved an amendment to provide that after Mr. Pope ceased to be manager of the Government Produce Department his successor to that office should not automatically replace him on the Australian Meat Export Control Board, but that the representative of the slaughtering and freezing interests in South Australia on that board should be nominated by the Abattoirs and Export Board. The chairman of this concern is appointed by the State Government, while half of the representatives are elected by the producers, butchers, and other sections of the export and local meat trade, and the other half by the consumers. A person chosen by that board would better represent the killing interests of South Australia than would the manager of the Government Produce Department, whoever he might be at that time. The amendment inserted by the Senate is intended to clarify that position. The provision for the GovernorGeneral to remove members of the Export Control Board on the recommendation of the board is designed to safeguard the position that the board will be absolutely controlled by British and Australian interests. Although the phrasing might not be particularly plain, it is just as well to retain the provision providing for an alteration of the membership of the board on the recommendation of the board by the action of the GovernorGeneral.

Mr BERNARD CORSER:
.Wide Bay

– I supported the amendment when it was previously considered by the committee. It has not altered the intention of the act in any way; nor has the amendment to that amendment, suggested by the Senate, which is merely a verbal one to make the position clearer. The original intention of the measure was to give the processing industry in each State a representative. Thus, the meat-works of Queensland are represented by the chairman of the Meat Industry Board; the commissioner controlling the metropolitan meat industry is the representative of the Government of New South Wales; and the general manager of the Wyndham meat-works becomes a member of the board on behalf of the Government of Western Australia. The Senate has not amended that representation. But the circumstances in South Australia are peculiar. The representative provided for in the bill happens to be the general manager of the Government Produce Department. I agree with the reason which actuated the honorable member for Wakefield (Mr. Hawker) in moving his amendment. Mr. Pope is an authority with regard to meatnegotiations and is generally recognized by the industry as being an outstanding man in the trade; but the honorable member for Wakefield, foreseeing the apparent danger of a future general manager of the Produce Department knowing nothing about the subject of the export of beef, suggested that, after the retirement of Mr. Pope, the Metropolitan and Export Abattoirs Board, as in the other States, should have the right to nominate a person to the vacancy. The effect of the Senate’s amendment is to make the provision more elastic as regards the choice of a representative after Mr. Pope relinquishes the office. The honorable member for Dalley (Mr. Rosevear) lias raised an interesting matter, which the Senate might have been much better employed in endeavouring to clarify instead of devoting its attention to the amendment of the honorable member for Wakefield, inasmuch as no provision is made for the appointment to the board of any person appointed to fill one of the positions mentioned in sub-clause 10, who has been removed from office by the Governor-General. The Minister has suggested that the difficulty may be covered by sub-clause 13 of clause 5, which gives the Governor-General power to make an appointment when no nomination has been received. Clause 6 provides that the board shall be a body corporate with perpetual succession, but it will not have perpetual succession if a member of the Meat Export Control Board does not represent one of the State meat exporting interests. There does not appear to be anything in the bill to ensure that continuity of State representation of meat exporting industries which is contemplated in clause 6.

Mr ROSEVEAR:
Dalley

.- I think that tlie difficulty can be overcome by amending the clause on similar lines to that suggested in the case of South Australia.

Mr THORBY:

– An amendment has been drafted which, I think, will overcome the difficulty mentioned by the honorable member.

Mr ROSEVEAR:

– I suggest the in- <sertion of a further paragraph c, to read -

In the event of any of the foregoing representatives being removed from the board and still retaining their position with any boards or freezing works, those in charge of such boards or freezing works shall have the right to nominate a successor for the remainder of the term.

In the case of South Australia, it is provided that the person holding a certain position at the commencement of this act, shall be a member of the board, but when he ceases to occupy that position another body shall have the power to nominate his successor. South Australia is the only State to have that privilege. The wording of the clause is clear. Persons holding certain specified positions within a State are to be appointed as members of the board, but if removed from office by the Governor-General on the recommendation of the board, they may still retain their respective positions in the States, and there is no machinery whereby they can be replaced. The Meat Export Control Board may recommend the removal from the board of the representative of New South Wales, but the Government of New South Wales may say that it still proposes to retain him as the Metropolitan Meat Industry Commissioner in New South Wales. There would thus be conflict of opinion between the two authorities. If the bill is allowed to pass in its present form, and provision similar to that made in respect of South Australia is not made in connexion with the other States, one State may be entirely disfranchised, because of difference of opinion between the Export Board and the authority employing a particular commissioner. The Minister suggested that the position could be overcome by some other person being appointed by the Governor-General. But, according to the bill, nobody can represent New South Wales on the Meat Export Control Board who is not the person who for the time being holds the position of Metropolitan Meat Industry Commissioner in New South Wales. No other person would have any more right to sit on the board than I would have, because only specified individuals are to have the right to represent specified State instrumentalities. I do not know whether the amendment proposed to be moved by the Assistant Minister (Mr. Thorby) is preferable to mine, but I do not wish a position to arise whereby a representative of a. certain State may be removed from the board and there is no power under the act to replace him.

Mr THORBY:
Assistant Minister for Commerce · Calare · CP

– As I misread the clause, the explanation which I firstgave was inaccurate. The possibility of a. position arising such as that mentioned by the honorable member for Dalley (Mr.Rosevear) is very remote, but at the same time it could arise. The member representing the Metropolitan Meat Industry of New South Wales could be removed from the Meat Export Control Board, and there is no provision in the bill, as it is framed at present, to appoint a successor. In order to overcome that difficulty, I propose to move that at the end of para graphs a, b and d the following words be added : -

At the end of paragraph a, “ or in the event of that person ceasing in pursuance of this section to holdoffice as amember of the board, such person as is appointed by the Governor-General on the nomination of the Governor in Council of that State.

At the end of paragraphb - “ or in the event of that person ceasing in pursuance of this section to hold office as a member of the board, such person as is appointed by the GovernorGeneral on the nomination of the Governor in Council of the State of Queensland “.

At the end of paragraph d - “ or in the event of that person ceasing in pursuance of this section to holdoffice as a. member of the board such person as is appointed by the Governor-General on the nomination ofthe Governor in Council of the State of Western Australia “.

Paragraph c, referring to the position in South Australia, is already provided for. This amendment of the Senate’s amendment would overcome the possibility of any doubt arising as to the appointment of successors.

Mr.Blackburn. - Is it not necessary to omit the words, “each member shall hold office during the pleasure of the Governor-General ?

Mr THORBY:

– Offhand , I should say that that is unnecessary.

Mr Baker:

– Sub-clause 15 deals with that point.

Mr THORBY:

– That sub-clause deals only with members of the board other than government representatives, who may be removed from office by the Governor-General on the recommendation of the board. The honorable member for Dalley has suggested that although one of the representatives of Government abattoirs or meat works might be removed from the board by the GovernorGeneral, he might still retain his State position and in that event there would be no provision for the nomination of his successor. The amendments which I have foreshadowed will overcome this difficulty.

Mr.FISKEN (Ballarat) [4.42].- I regret that I was unavoidably absent last week when the discussion took place on the second reading of the bill. I am surprised that the contingency mentioned by the honorable member for Dalley (Mr. Rosevear) was not discovered earlier in the debate. Personally I would prefer an amendment on the lines suggested by the honorable member to those foreshadowed by the Minister, because as one who attended the Canberra conference, which drafted the broad outlines of the bill, I know the general feeling was that the public utilities in the various States should be directly represented on the board through the management. It was felt that in this way the small producers, whose stock is processed by these works and who desired to export on their own account, would have representation.

Mr Mahoney:

– Why has not more adequate provision been made for the representation of Tasmania on the board ?

Mr THORBY:
Assistant Minister for Commerce · Calare · CP

– If the honorable member for Denison (Mr. Mahoney) will look at paragraph a, he will find that there is provision for “ one member in respect of each State to represent the stock producers of the State.” Under paragraph e there is provision for the appointment of “ one member in respect of each State which exports more than 15,000 tons of meat annually.” That, I admit, would not include Tasmania, but under paragraph h the Commonwealth will nominate one representative to .take care of all Commonwealth interests on the board, and there will also be one member to represent co-operative organizations which export mutton and lamb, as well as one. representative of the pig industry, so Tasmanian producers are not without representation. I remind the honorable member for Ballarat (Mr. Fisken) that the bill gives effect to the decision of the Canberra conference that the persons for the time being occupying the positions of managers of State abattoirs or meat works should be members of the board by virtue of their positions and because of the knowledge which they possess of the meat industry generally. The amendments which I have foreshadowed will enable successors to be nominated in the event of any one of the persons mentioned being removed from the board while still retaining his position under a State government. I would point out that the removal of such a person from the board would only follow some offence which would be of such a serious nature as to ensure his removal from his position under the State govern ment, so the contingency mentioned by the honorable member for Dalley (Mr. Rosevear) is extremely remote. Only in the event of any one of them being removed, would a successor be nominated by the Government of the State in which the person- removed was operating.

Mr Fisken:

– Could it not be made more specific, by stating from among whom he should be nominated by the State ?

Mr THORBY:

– The honorable member would endeavour to tie the hands of the Government.

Mr Fisken:

– No. I want the nomination to be made from the original source.

Mr THORBY:

– The honorable member is quite logical in the point that he raises; hut it would be almost impossible to meet that point in an act of Parliament. He is really suggesting that the measure should provide that the deputy of the person removed, or some one else connected with the meat works, should be appointed iu his place. The honorable member must realize that that would be a dangerous condition to impose upon any State government. I am absolutely convinced that if it should so happen that the manager of any one of these works did anything to justify his removal from the federal board, such action would also bring about his removal from the State organization.

Mr Rosevear:

– No; there might be conflict on the board.

Mr THORBY:

– Honorable members must be reasonable, and recognize that a member could be removed only on the recommendation of the board, which would have to be accepted by the Minister, and referred by him to the Governor-General in Council. It must be admitted that the offence would need ‘to foe very serious to justify the ‘removal of any member ; and if it were so serious, it would undoubtedly mean his removal from the State organization which he was representing. Under my proposal, in the event of the State government or the State authorities overlooking the reason for his removal from the federal board, and allowing him to continue in office within the State, the State shall then have the right to nominate his successor. I do not think that it would be advisable to limit the discretion of the State govern- ment as to whom it should nominate in the event of a representative being removed, because I am convinced that it is unlikely that a representative would be removed by the federal ‘board for a reason other than one which would justify his removal from the management of the State instrumentality. So that every State would be in a similar position, I urge the committee to agree to the deletion of the amendment made last Friday in relation to South Australia, thus restoring the bill to its original form, the substitution therefor of a provision for the nomination by the Government of South Australia of a successor to a person removed from the board, and the adoption of the amendments I have outlined to paragraphs a, b, c and d.

Mr.Rosevear. - Suppose that the State government nominated a man who hadbeen removed from the board ?

Mr THORBY:

– That would be its responsibility. In all probability, such a nomination would not be accepted, and the vacancy would continue until a person acceptable to the Governor-General had been nominated. Such a vacancy would not affect the validity of any action taken by the board.

The CHAIRMAN (Mr. Prowse).So that the matter may be placed in proper form, I suggest that the Minister obtain leave to withdraw his motion “ That the Senate’s amendment be agreed to “ and then move his amendment.

Motion - by leave - withdrawn.

Mr THORBY:

– I now move-

That the Senate’s amendment be amended by adding at the end of paragraph (re) the following words: - “or in the event of that person ceasing, in pursuance of this section, to hold office as a member of the board, such person as is appointed by the Governor-General on the nomination of the Governor-in-Council of that State.”

Mr BAKER:
Griffith

.- It would seem that at last the position is being clarified. The point raised by the honorable member for Dalley (Mr.Rosevear) relates to a (matter that obviously was in need of correction, and it is remarkable that it passed unnoticed both in this chamber and in the Senate. But for the amendments made by the Senate, the matter would not have come again before honorable members. It would appear on the surface that the action now being taken by the Minister will meet the position. I point out, however, that there is a great deal of verbiage, of the meaning of which it is obviously impossible for honorable members to have a correct appreciation. Therefore, in order to make sure that we shall not become more involved, I suggest that the Minister have typewritten copies of the amendments placed in the hands of honorable members, or at least present those amendments in such a way that we may properly understand them. I revert to a point that I raised by way of interjection. The proposal of the Senate provides that each member appointed to represent publicly-owned abattoirs and freezing works dealing with meat for export shall hold office during the pleasure of the Governor-General. That is similar to the provision which relates to the representative of the Commonwealth Government. But sub-clause 15 of clause 5 provides that members other than the government representative may be removed from office by the Governor-General, on the recommendation of the board. It would seem to me that the provision that each member shall hold office during the pleasure of the Governor-General could, with wisdom, be deleted, and that sub-clause 15 should be altered to read “ Members of the board other than the government representative, may be removed from office by the Governor-General on the recommendation of theboard, or for any other reason.” The provision for the easy removal of publicly-appointed individuals, while other members can be removed only on the recommendation of the board, is inexplicable. As the board is being appointed for the benefit of the community as a whole, and not for the particular benefit of any institution, I suggest that full power be given for the removal of any member of it by the Govern or-General .

Mr CLARK:
Darling

.- I draw attention to the position that is now being created. The suggestions of the honorable member for Dalley (Mr.Rosevear) are more in keeping with the principles ofthe bill. As the honorable member for Ballarat (Mr. Fisken) has pointed out, the intention was that this board should represent primarily the producers in the industry, and that the members appointed under the provisions of sub-clause 10 should represent publiclyowned abattoirs and freezing works. If an amendment similar to that now before the committee is proposed in relation to South Australia, the Governor in Council of that State would be given the right to nominate a representative to the Governor-General in Council. That State might adopt a collective policy of marketing, and because of conflict ‘between the State and Commonwealth Governments, the Commonwealth authorities might see fit to remove the State representative from the ‘board. Thus, instead of having true representatives of publicly-owned companies, who would watch the interests of the producers, the men appointed might represent the exporters. I foresee the possibility of the meatexporting trade being controlled by big interests such as Vestey’s or Swift’s. If we make provision whereby the persons to be appointed to the board may be other than the nominees of the producers, there will be a danger that men representing the big exporting and exploiting companies will be appointed to the board.

Mr THORBY:
Assistant Minister · Calare · CP

– My amendment provides that, in the event of the person mentioned in the paragraph being removed from office, his successor shall be nominated by the Government of the State of New South Wales. It makes provision for a most unlikely happening and is almost identical with the proposal of the honorable member for Dalley (Mr. Rosevear). As my amendment has been drafted by the parliamentary draftsman to conform to the provisions of the bill no anomaly should arise. I therefore urge honorable members to accept it.

Mr BERNARD CORSER:
Wide Bay

– The amendment of the Assistant Minister (Mr. Thorby), although, overcoming one anomaly, alters the mode of selection in that it gives to each State Government the right to nominate two members to the board. I do not feel disposed to support it. I suggest that provision be made for each of the bodies referred to in the proposed new subclause (10) to nominate the successor to its representative should he be removed from office. In paragraph a I suggest that the words “ or a nominee of the commission “ be added, with a similar suitable addition to paragraphs b, c and ti, so that in each case the person to be appointed shall be a nominee of the body mentioned therein. My suggestion would overcome the difficulty which has arisen and provide for continuity of control.

Mr THORBY:
Assistant Minister · Calare · CP

– The honorable member for Wide Bay (Mr. Corser) seeks to retain the right of the various bodies mentioned in the proposed new sub-clause to direct representation on the board. The provision will come into operation only in the event of any of the persons mentioned in the several paragraphs being removed from the federal board. The honorable member’s suggestion that we should make the body whose representative has been removed from the federal board responsible for nominating his successor would increase, rather than decrease, the difficulty. For instance, should the chairman of the Queensland Meat Industry Board be removed from the federal board, but still retain his position on the State board, complications would arise if the State board were asked to appoint his successor. It might happen that, in that event, the Queensland Meat Industry Board would re-nominate the same person, and as his nomination would obviously not be acceptable to the Federal Government, further difficulties would arise. Moreover, the State board might refuse to nominate a successor, thereby leaving a vacancy on the federal board. My amendment makes the Government of the State concerned responsible for nominating a successor. I repeat that it is most unlikely that any vacancy will occur in the manner suggested, but in that remote contingency surely we can depend on the State Government to nominate a person both capable of carrying out the duties and acceptable to the industry. I appeal to honorable members not to increase the already great difficulties, but to accept my amendment.

Mr LAZZARINI:
Werriwa

.- It would appear that the proposed new sub-clause was framed to provide that certain interests should be represented on the board. The amendment should be consistent with that intention. The per- sons mentioned in paragraphs a to d should remain on the board until removed by the authorities which appointed them. A member of the board who is not carrying out the wishes of those whom he represents will not long remain their representative. It seems to me that whereas tho original intention was that certain bodies should have direct representation on the board, the amendment destroys that intention.

Mr BERNARD CORSER:
Wide Bay

– This is one of the most important provisions of the bill. Obviously, the intention of the Government i3 to provide against the control of the meatexport industry by big proprietary interests, and that is why it stipulates that co-operative companies or State utilities should be represented on the board. Now we are being asked to give to a State government the right to nominate a person who may not be acceptable to the instrumentality he is to represent. We should not interfere with direct representation on this board of the exporting organizations that have been established in each State. That is one of the original principles of the bill. Why should we allow the Premier of South Australia, for instance, to nominate somebody to represent any cooperative body on this board? In reply to rue the Minister said that the real object of this amendment is to overcome the point raised by the honorable member for Dalley (Mr. Rosevear) that the bill, as it now stands, does not provide for the appointment of successors to members who may be removed from the board-; but sub-clause 13 provides that if a nomination is not forthcoming, the GovernorGeneral shall have power to make an appointment.

Mr Thorby:

– That applies only to the associations and bodies.

Mr BERNARD CORSER:

– When the honorable member for Dalley raised his point the Minister quoted a clause which he immediately admitted did not apply, but then said that all the necessary powers in this connexion were embodied in subclause 13. The Minister now says that there is no provision in the bill to cover the position. I said at the time that it seemed very doubtful whether such power was embodied in the bill, and that an amendment should be brought forward to clarify the position. The amendment proposed now by the Minister seems to ignore a feature of the bill in that it will deprive public bodies concerned with the export of meat of the right of direct representation on this board. He can make sub-clause 13 broad enough to overcome the position that would arise if a board did not nominate a successor to its representative who had been displaced from the board, but first of all we should give all of the bodies concerned the right to make such a nomination direct. I am in favour of this measure provided the rights of the industry to direct representation are fully recognized,

Mr ROSEVEAR:
Dalley

.- The committee apparently is unanimously of the opinion that means should be provided to fill any vacancy which may occur. The present difference of opinion seems to be as to whether the Governor in Council in the State from which a displaced representative comes, or the particular body concerned should have the right of nomination. The Minister would have been better advised had he accepted the amendment which I forecast to insert the following as paragraph (e) -

In the event of any of the foregoing representatives being removed from the board and still retaining his position in the publiclyowned abattoirs and freezing works the controlling authority of such abattoirs and freezing works shall have the right to nominate the sucessor for the remainder of tho term of office of such representative.

I believe this would get over the present difficulty. It is not sufficient to say that the displacing of a representative is a remote possibility. The possibility exists, and we have to devise ways and means of replacing a representative who may be removed from the board. If we do not do so a whole State may be disfranchised so far as representation on the board is concerned. The suggestion made by the honorable member for Wide Bay (Mr. Corser) seems to be the fairest way of arranging for the nomination and appointment of successors. It was that in the event of a representative of a certain body being removed from the board, that particular body, and not any outside authority, should have the right to nominate a successor. If the Minister amendment be adopted, a State government might make a purely political appointment, even -with the object of causing discord on the ‘board. Honorable members will agree that harmony on the board won’ d best be ensured if the body directly concerned, and not any outside body, is given the right to nominate successors to displaced representatives. The Minister has admitted that these particular interests should be represented on the board. If one of their representatives is removed, I cannot see any reason why his successor should not be nominated by the body which the displaced man had represented; I ask for your direction, Mr. Chairman, as to whether I would be in order in moving, at this stage, the addition of the new paragraph which I have already mentioned. If the Minister proposes to move an amendment to each of these paragraphs, considerable repetition of discussion will be inevitable. Probably, much time would be saved if, instead of amending each paragraph separately, a comprehensive new paragraph were added, as I have suggested.

The CHAIRMAN:

– It will be competent for the honorable member to submit his amendment when the Minister’s prior amendments have been dealt with.

Mr THORBY:
Assistant Minister for Commerce · Calare · CP

– I have endeavoured to explain the position which would arise if the suggestion outlined by the honorable member for Wide Bay (Mr. Corser) were accepted. If the general manager of the meat-works at Wyndham were removed from the Australian Meat Board, what authority should appoint his successor ? The honorable member for Wide Bay suggests that the controlling authority at Wyndham should do so, but I point out that there is only a general manager in charge of those works. What other authority than the Government of Western Australia could nominate a successor to this particular representative? In New South Wales, a commissioner controls the abattoirs. In the event of his removal from the Australian Meat Board, what .authority, other than the Government of New South Wales, would nominate his successor?

Mr BERNARD CORSER:
WIDE BAY, QUEENSLAND · CP

– The meat industries board.

Mr THORBY:

– There is no board; a commissioner is in charge of the abattoirs. If the meat industry of New South Wales is satisfied to trust the appointment of the commissioner to the State Government, surely the Commonwealth Government can rely on the same Government, whatever its political complexion, to nominate a fit and proper person as successor to the New South Wales representative on this board. If we cannot trust. State governments, irrespective of politics, to nominate the right person to this board, whom can we trust? The State governments act on behalf of all sections of the community, and representatives of all of them at the Meat Conference held in Canberra agreed to this basis of representation on the Australian Meat Board. To meet the point raised by the honorable member for Dalley (Mr. Rosevear), I have had my amendment drafted by the Crown Law officers to provide that, in the event of one of these representatives being removed from the board - a very remote contingency - the Government of the State concerned shall nominate his successor. If he is removed from the State instrumentality, then his successor on that body will automatically take his place on the Australian Meat Board, but should a representative who is removed from the Australian Meat Board retain his Stale position, it will be competent for the ‘ State government to nominate his successor. The points raised by the honorable members for Dalley (Mr. Rosevear) and Wakefield (Mr. Hawker) and other honorable members, will be met by cbe amendment now before the committee. -

Amendment of ‘Senate’s amendment No. 1 agreed to.

On motions (by Mr. Thorby), Senate’s amendment No. 1 further amended -

By adding at the end of paragraph (6) the words “ or in the event of that person ceasing in pursuance of this section, to hold office as a member of the Board, . such person as is appointed by the Governor-General on the nomination of the Governor-in-Council of the State of Queensland.”

By omitting from paragraph (o) the words “Metropolitan and Export Abattoirs Board in “ and inserting in lieu thereof the words “ Governor-in-Council of “.

By adding to paragraph (d) the words, “ or in the event of that person ceasing in pursuance of this section to hold office as a member of the board, such person as is appointed by the Governor-General on the nomination of the Governor-in-Council of the State of Western Australia”.

Senate’s amendment No. 1, as amended, agreed to.

Clause16-

The Board shall have power -

to make reports and suggestions to the Minister on such matters as the quality standards and grading of any particular class or kind of meat exported from Australia;

Senate’s amendment. - After “meat” insert “ to be “.

Mr THORBY:
Assistant Minister for Commerce · Calare · CP

– I move -

That the amendment be agreed to.

The purpose of the amendment is to make it clear that the board has power to deal with meat intended to be exported from Australia.

Motion agreed to.

Resolutions reported; report adopted.

page 1751

INCOME TAX BILL 1935

In Committee of Ways and Means:

Mr CASEY:
Treasurer · Corio · UAP

.-I move-

  1. That a tax be imposed on income at the following rates: -

Division A. - Rate of Tax upon Income Derived from PersonalExcrtion. (For the purposes of this Division: T = taxable income in pounds.)

If the taxable income does not exceed £6,900, the rate of tax for every pound of taxable income shall be -

If the taxable income exceeds £6,900, the rate of tax for every pound of taxable income up to and including £6,900 shall be -

and the rate of tax for every pound of taxable income in excess of £6,900 shall be - 76.5 pence.

Division B. - Rate of Tax upon Income Derived from Property. (For the purposes of this Division: T= taxable income in pounds.)

If the taxable income does not exceed £500, the rate of tax for every pound of taxable income shall be -

If the taxable income exceeds £500 but does not exceed £1,500, the rate of tax for every pound of taxable income shall be -

If the taxable income exceeds £1,500 but does not exceed £3,700, the rate of tax for every pound of taxable income shall be -

If the taxable income exceeds £3,700,the rate of tax for every pound of taxable income up to and including £3,700 shall be -

and the rate of tax for every pound of taxable income in excess of £3,700 shall be - 90 pence.

Division C. - Rates of Tax in Respect of Taxable Income Derived Partly from Personal Exertion and Partly from Property.

  1. For every pound of taxable income derived from personal exertion, the rate of tax shall be ascertained by dividing the total amount of the tax that would be payable under Division A if the total taxable income of the taxpayer were derived exclusively from personal exertion by the amount of the total taxable income.
  2. For every pound of taxable income derived from property, the rate of taxshall be ascertainedby dividing the total amountof the tax that would be payable under Division B if the total taxable income of the taxpayer were derived exclusively from property by the amount of the total taxable income.

Division D. - Tax Payable where Amount would Otherwise be less than Ten Shillings.

Notwithstanding anything contained in the preceding divisions, where the amount of income tax which a person would, apart from this division, be liable to pay is less than Ten shillings the income tax payable by that person shall be Ten shillings.

Division E. -Rate of Tax Payable by a Trustee.

For every pound of the taxable income in respect of which a trustee is liable to be separately assessed and to pay tax. the rate of tax shall be the rate which would be payable under Division A, B, or C, as the case requires, if one individual were liable to be separately assessed and to pay tax on that taxable income.

Division F. -Rates of Tax Payable by a Company.

  1. Subject to the last preceding division, for every pound of the taxable income of a company, the. rate of tax shall be 12 pence.
  2. For every pound of interest paid or credited by a company to any person who is an absentee, in respect of debentures of the company, or on money lodged at interest with the company by such person, the rate of tax shall be 12 pence.

Division G. - Rate of Tax Payable by an Individually-Owned Partnership.

Individually-owned Partnershipsother than Trusts which are Partnerships -

For every pound of the taxable income of an individually-owned partnership, the rate of tax shall be determined as follows: -

  1. from the total amount of tax which would be payable by the member specified under sub-section (2.) of section twenty-nine of the Income Tax Assessment Act 1922-1934, if the taxable income of the partnership were added to his own taxable income, subtract the amount of tax actually payable by him in respect of his own taxable income; and
  2. divide the amount obtained by the application of the last preceding paragraph by the number of pounds in the taxable income of the partnership.

Trusts which are Individually-owned Partnerships -

For every pound of the taxable income of a trust which is an individually-owned partnership, the rate of tax sha.1T be determined as follows : -

  1. from the amount of tax which would bc payable by the person by whom the trust was created if the taxable income of the partnership were added to his own taxable income, subtract the amount of tax actually payable by him in respect of his own taxable income; and
  2. divide the amount obtained by the application of the last preceding paragraph by the number of pounds in the taxable income of the partnership.

Division H. - Rate of Tax Payable by a Severally-owned Pa rlnership.

For every pound of the. taxable income of a severally-owned partnership, the rate of tax. shall be determined as follows: -

  1. compute the total of the amounts of tax that would be payable by the several members specified under subsection (2.) of section twenty-nine of the Income Tax Assessment Act 1922- 1934. if the severally-owned partnership were a partnership (other than a severally-owned partnership) between those members with equal interests :
  2. from the total tax obtained by the application of the last preceding paragraph subtract the total of the amounts of tax actually payable by those several members on their own taxable incomes ; and
  3. divide the difference obtained by the application of the last preceding paragraph by the number of pounds in the taxable income of the partnership.

    1. That in addition to any tax provided for in clause 1 of this resolution, there shall bo payable upon the taxable income derived by any person -
  4. from property;
  5. by way of interest, dividends, rents or royalties, whether derived from personal exertion or from property; and
  6. in the course of carrying on a business, where the income is of such a class that, if derived otherwise than in the course of carrying on a business, it would be income from property, a further income tax of five per centum of the amount of that taxable income.

    1. That where tax is payable by a company under the last preceding clause of this resolution the tax provided for in that clause shall not be payable by a member or shareholder of that company upon that part of his taxable income attributable to income derived by him in consequence of the distribution by that company to its members or shareholders of the income or any part thereof upon which tax is so payable by that company or in consequence of a succession of such distributions through another company or through other companies of that income of any part thereof.
    2. That for the purposes of the last preceding clause the part of the taxable income of a member or shareholder qf a company which is attributable to income derived by him in consequence of the distribution specified in that clause, shall be so much of the part of the dividends included in the taxable income of the member or shareholder (as that part is defined by sub-section (3.) of section sixteen ab of the Income Tax Assessment Act 1922-1934). as bears to that part of the dividends so included, the same proportion as the gross amount of the income derived by the member or shareholder from the company in consequence of the distribution specified in that clause bears to the gross amount of all income derived during the year of incomeby that member or shareholder from dividends.
    3. That sub-sections (2.) to (13.) inclusive of section thirteen of the Income. Tax Assesment Act 1922-1934 shall not apply to tax provided for in clause 2 of this resolution.
    4. That tax in accordance with the foregoing provisions of this resolution shall be levied and paid for the financial year beginning on the first day of July, One thousand nine hundred and thiry-five.
    5. That the foregoing provisions of this resolution shall also apply to all assessments for financial years subsequent to that beginning on the first day of July. One thousand nine hundredand thirty-five made prior to the passing of the act for the levying and payment of income tax for the financial year beginning on the first day of July, One thousand nine hundred and thirty-six.

This is the usual motion precedent to the introduction and enactment of the annual hill to prescribe the rates of income tax. It sets out the rate of tax proposed to be levied on assessments for the current financial year. When the motion has been passed, I shall introduce a bill to give effect to it. It is customary for the discussion on this subject to occur when the motion is before the Committee of “Ways and Means, and the subsequent passage of the Income Tax Bill is usually formal. It is proposed to reduce the special property tax from the present rate of 6 per cent, to 5 per cent, for reasons which I set out in the budget speech. The consequent reduction of revenue is estimated to he about £200,000 a year. This calculation is based on the 1934-35 income.

Division A of the motion deals with the rate of tax on income derived from personal exertion. The formula set out in both division A. and division B is that which has been in operation for several years. It was evolved originally by Professor Giblin when he was Commonwealth Statistician. The rate of tax in respect of income from personal exertion is unaltered and begins at 85 per cent, of 3d. in the £1, and it increases in a straightline curve - a term apparently contradictory but well understood by taxation experts - until the taxable income from personal exertion reaches £6,900 a year. When that point has been reached the rate of tax is 76.5 pence in the £1. Thereafter the rate of tax is uniform.

Division B deals with the rate of tax on income derived from property and it starts at, roughly, 3d. in the £1 and increases in a straight-line curve until a taxable income of £3,700 is reached, at which point the rate of tax is 90 pence in the £1. Thereafter the rate remains stationary. The rate of tax is the same is that which operated last year.

Division. C deals with the rate of tax in respect of taxable income derived partly from personal exertion and partly from property. It is designed to meet the case of a man with a composite income. For example, if a man’s total income were derived half from personal exertion and half from property, the average rate of tax over the whole would bc midway between the rate applicable to personal exertion and that applicable to property.

Divisions D, E and l7 are selfexplanatory.

Division G deals with the rate of tax payable by an individually-owned part nership, and has to do with cases in which mata fides have been established, as, for example, where a man has brought in some dummies as associates, and has attempted to establish that income which is actually his own personal income is income from a partnership. Division G enables the Commissioner of Taxation to deal with sham partnerships in such a way as to exact the total amount of taxation that would be payable if no sham partnership existed.

Division H relates to the rate of tax payable by severally-owned partnerships, which are, in fact, sham partnerships.

Paragraphs 2, 3 and 4 relate to the special property tax and the means of collecting it, and are designed to implement the procedure that has been adopted by the Commissioner ever since the special property tax has been in operation. Provision is made for a reduction of the rate of tax from 6 per cent, to 5 per cent. The special property tax is one of the most onerous of the special taxes imposed some years ago. Two years ago it was intended to reduce the rate of this tax from 10 per cent., at which it then stood, to 5 per cent., but the Government had need to obtain additional revenue for a special purpose, and it could not at that time reduce the rate below 6 per cent. This is a very small reduction in respect of tax which I think is universally agreed to bo particularly onerous.

Paragraph 5 provides that the averaging provisions which apply to income tax generally shall not apply to the special property tax. Paragraph 1 is framed in order to cover income derived by persons such as artists visiting this country, whose stay extends over parts of two financial years. This paragraph is inserted to provide that the rate of tax paid by such persons shall be the rate applicable for the period of their residence in this country notwithstanding the fact that they arc here for portions of two financial years.

Mr CURTIN:
Fremantle

.- The Opposition does not propose to delay the passage of this bill. This legislation re-enacts the existing legislation dealing with the income tax rate with the exception of the special tax levied in respect of income from property which, -under this resolution, will be reduced to 5 per cent. Otherwise the incidence of the income tax adopted by Parliament a year ago remains unaffected. I would like to say, however, that although last year no reduction was made, the reduction of £200,000 which is conceded by this resolution to those with incomes from, property is not the first reduction affected. Income tax collections during the last three years have been steadily falling. In 1931-32 the yield was £13,481,982; in 1932-33, £10,878,718 ; in 1933-34, £9,314,768 ; and in 1934-35, £S,761,619. Although the yield from income tax is progressively falling it must be acknowledged that the incomes derived from property in Australia should be substantially increasing from what they were at a nadir of the depression. Three years ago, when the problem of Australian finance was very acute, incomes from property and personal exertion were substantially lower than they are at present. As a matter of fact, within practically four years there has been a decline in the proceeds of income tax, from nearly £13,500,000 to approximately. £8,750,000. The rates of tax in operation in 1931-32, including the company rate of tax and the rate of the special tax on property income, were re-enacted for 1932-33. The Parliament felt that it could not afford to collect less from income tax than in the preceding year. In 1933-34, however, substantial reductions were made; the personal exertion rate was reduced by 15 per cent.; the company rate was reduced from ls. 4.8d. to ls. in the £, and the special tax on income from property was reduced from 10 per cent, to 6 per cent. The Government now proposes to reduce the lastnamed tax to 5 per cent. The 1933-34 rates again operated for 1934-35 and, substantially, with the exception of the special tax on property, the same rates are to apply for the current year. The effect of this resolution will be that less call will be made on the taxable capacity of Australia than by other taxation which this Parliament has imposed. I have mentioned in the discussion of other bills how the revenues of the Commonwealth are being increasingly derived from indirect taxation. Direct taxation has fallen from £2 17s. 7d. in 1930-31 to £1 14s 5d. in the last financial year. That represents a per capita reduction of direct taxation by £1 3s. 2d. On the other hand indirect taxation has increased by about £2 2s. a head. I think it has been sufficiently established that direct taxation is levied entirely upon those who have the capacity to pay. Only with very great reluctance, there fore, should this Parliament contemplate an increase of the revenue from indirect taxation at a time when it faces a. steadily declining revenue from direct taxation. Furthermore, the fact must be borne in mind that the ordinary transactions of the Consolidated Revenue Fund for the first four months of this financial year showed an excess of receipts over expenditure of £1,990,000. Of this amount customs and excise provided an increase of nearly £1,1S0,000 over the budget estimate for that period. Thus, the per capita contribution by the citizens of Australia to this Parliament in the present financial year is well over £1,000,000 more than was estimated in the Treasurer’s budget speech. The inequality in the incidence of taxation, direct and indirect, is a matter which this Parliament must face because, incontestably, it is wrong for the Parliament to be refusing to restore, shall we say, invalid and old-age pensions while, at the same time, making these remissions of direct taxation even to the limited degree involved in this resolution. It is true that the reduction is less than £250.000, and that that sum would not provide adequately for such other contingencies as certain honorable members have in mind, but nevertheless I direct the Treasurer’s attention to the remarkable increase of the proceeds of indirect taxes during the present financial year. As I have said, it exceeds the estimate by more than £1,000,000. I know the honorable gentleman may say that revenue received during the first four months is not necessarily an indication of the receipts for the complete year ; but I can imagine that had there been a fall of £1,000,000 during that period the Treasurer would be so apprehensive of the trend that that indicated, that he would be asking Parliament now to take cog- nizance of it. Property tax remissions which, have been made during recent years have been much more substantial than the £200,000 proposed by this resolution. In 1932-33 the value of the flat rate exemption was £500,000. That concession continued in the succeeding years. In 1933-34 the reduction of the special property tax from 10 per cent, to 6 per cent, gave an additional relief of £880,000. Those remissions were repeated in the next year, and will continue this year, plus a further remission of the special property tax to the amount of £220,000 ; thus making the total relief for four years £4,S60,000. Although one may urge that taxes upon capital are unwise, yet the incidence of taxes on the well-to-do is less severe than is that of the indirect burdens imposed on the poor. Professor Giblin has pointed out that taxation on capital does not apply to those who have no income from capital. The tax is applied not to capital, but to income from capital; it is not imposed upon house property but on the income derived from that property. “While it can be urged that when introduced the property tax was onerous, the substantial reductions of it which have been made are in marked contrast to the treatment meted out by this Parliament to other sections of the community who, equally with those with incomes from property, were called upon to make special sacrifices during the period of financial emergency. I have no more to say other than to urge the committee before finally disposing of this matter not to entirely overlook what I regard as the fundamental unbalance of the sources of Commonwealth revenue. “While, on the one hand we are continually burdening the ‘community by the imposition of indirect taxation, regardless of the individual competence of the citizens to pay, on the other hand we have a continuation of the programme of remissions of direct taxation, which definitely is imposed only on those able to pay; if they have no taxable income they do not pay the tax. This Parliament has to consider that aspect of the matter. In any event I submit that before the Parliament contemplates further remissions of direct taxation it ought to consider its obligations to those who have acknowledged claims upon the Commonwealth - claims which were subjected to special pruning some years ago because of the difficulties of the financial situation. Surely we ought not to reduce taxes on those who have incomes from property and relatively can well afford to contribute to the public revenues until we have first assured that those who have no income from any source and are dependent upon this Parliament - the aged and the invalid - have secured to them the rate of pensions that applied before the special emergency legislation was introduced.

Mr BEASLEY:
West Sydney

.- Under the Income Tax Assessment Act an exemption of £50 is allowed for each child under the age of sixteen years. In normal times this is fair enough, because usually by the time a child reaches the age of sixteen, or even before then, he has taken his place in industry. One effect of the depression, however, is that youths have found it exceedingly difficult to obtain employment with the result their parents have had to continue supporting them. This has placed a severe strain upon the resources of many families, especially as the earnings of the head of the family have, in too many cases, been reduced as a result of wage-cuts. In the circumstances, the exemption might well be extended to cover’ children over the age of sixteen who are unemployed, and still residing with their parents. The unemployment of youths is a serious problem in Australia to-day, and the concession I have suggested would be some relief to parents. The existing tax on some property owners may be onerous, as the Treasurer has said, and I know something of that from discussions which I have had with those concerned; but in a large number of case3 property owners are among the more fortunate member* of the community, and the case in relation to them has been well put by the Leader of the Opposition (Mr. Curtin). We should remember that the reductions of social services which took place during the depression really represent a form of taxation. The aged and the afflicted have been called upon to pay a special tax, even now amounting to 2s. a week, which represents a very large proportion of their total income. Thus, the emergency tax levied upon them is relatively much higher even than that which property owners are called upon to pay. I trust that the Government will pay some heed to my suggestion, so that the weight of taxation may fall as equitably as possible on all sections of the community.

Mr HOLT:
Fawkner

.- I should be pleased if the Minister would explain how the rate of tax payable in the pound is worked out in clause 1 of the bill, as I find the matter somewhat obscure. I endorse the remarks of the honorable member for West Sydney (Mr. Beasley) regarding the desirability of extending the child exemption to include unemployed children over sixteen years of age who reside with their parents. It ha? been estimated that of the youths between the ages of 14 and 21 who are unemployed 90 per cent. are between the ages of 18 and 21.

Mr LAZZARINI:
Werriwa

.- I am definitely opposed to the proposal to reduce the present special property tax. The Treasurer (Mr. Casey) said airily that it would mean a loss of only £200,000 to the revenue, and while that may be so for the present year, further similar reductions will no doubt result in further losses. In the opinion of the Minister, the property tax is most onerous; probably he considers it iniquitous, but to my mind it is nothing of the sort.

Sitting suspended from 6.15 to 8 p.m. [Quorum formed.]

Mr LAZZARINI:

– In declaring my opposition to that part of the bill which seeks to relieve the more fortunate classes of the community of taxes amounting to £220,000 a year, I emphasize that that proposal is indicative of government policy. Despite the promise made when the Financial Emergency Bill to implement the Premiers plan was before the Parliament, that when conditions improved the most hard-pressed sections of the people would be the first to be given relief, the Government has pursued an opposite course. Admittedly, as the Treasurer has pointed out, the super tax on income from property is onerous, but it is preferable to taxes which bear harshly on the less favoured classes. The super tax at least collects revenue from the people who have the capacity to pay ; and as the Leader of the Opposition has pointed out, it is levied, not on capital, but on the income from capital. The person who derives a small income from property is not nearly so seriously affected as are persons with incomes ranging from £30,000 to £50,000 a year. Some of the latter class pay about 65 per cent. of their income in taxes, and I do not think that that is justified, but at the same time, their incomes can support the burden. For that reason remission of taxes to the wealthy is not justified. When asked to reduce sales tax and other indirect taxes the Treasurer said that the budgetary position would not permit of such concessions. Yet the sales tax has a much worse effect on industry than has the property tax, because by restricting consumption it retards recovery. It cannot be claimed that the property tax has that result, and it should, therefore, remain in operation until the incidence of the sales tax is lightened. The £200,000 which it is proposed to remit to the landed interests could well be diverted to the payers of sales tax.

A survey of the policies of non-Labour governments throughout Australia - the State governments are following the same course as the Commonwealth Government -would show that the interests which support these governments are receiving bonuses, while the poorer interests, whose burdens are crushing, are being ignored. Before asking Parliament to remit a huge sum to the property-owners, the Government should restore invalid and old-age pensions to their pre-depression level. I heartily support the plea of the Leader of the Opposition that the Government should do this overdue justice to the aged and indigent. I also support the contention of the honorable member for West Sydney (Mr. Beasley) that the Income Tax Assessment Act should he amended by extending exemptions granted in respect of children. At present the exemption ceases when a child reaches the age of sixteen years, but in recent years many children have remained dependent on their parents long after passing that age. The £220,000 that is being remitted to wealthy property-owners could be better absorbed in either extending the exemption age or in increas- ing the amount of the exemption for each child. This concession should be given at least 10 taxpayers whose taxable income does not exceed £250.

I join with the honorable member for West Sydney and the honorable member for Fawkner (Mr. Holt), in appealing to the Treasurer, who is so liberal in handing out largesse to his wealthy friends, to consider this suggestion. The income tax is a hardship to people who receive low salaries, and who have to support unemployed children. I am definitely opposed to the proposed further remission of the special property tax, and I intend to vote against it.

Mr LANE:
Barton

.- I regret that the proposal to make further remissions to the payers of the special property tax has been made at the present juncture, In view of the difficulties which the ordinary working man is encountering to-day, he at least deserves some consideration when tax remissions are being granted. I had hoped that the budget speech would include a reduction of the sales tax at least to 2$ per cent. I would have favored a reduction to 1 per cent., or better still, its discontinuance. The public to-day is .shouldering a very heavy burden of taxes, and the further we get away from the period of depression the more should the great mass of the people share in the remissions of taxes. Indirect taxation, particularly the sales tax, increases the cost of living, hampers the small business man in every direction, anc! brings no benefit. I think, to the master class.

The CHAIRMAN (Mr. Prowse).Order! The honorable member must connect his remarks with the bill.

Mr LANE:

– I am emphasizing the effect of indirect taxation on the community generally, and protesting against its continuance when the Government can afford to reduce the rate of the special property tax by 1 per cent. In view of the fact that many of the difficulties associated with the wheat industry appear to have been solved, I was hopeful that the budget would contain provision for the remission of £2,000,000 or £3,000,000 of taxes. I know that the sales tax. was on a previous occasion reduced by 1 per cent., hut primary industries have received remissions of taxes in every direction. The remission of £220,000 to the payers of property tax gives to those who can afford to pay a present which might well have beet bestowed in another direction. The property tax does not inflict so much hardship as does the sales tax, which has to be paid on articles of food and clothing which the poorer sections have to purchase daily. I do not suggest now that the Treasurer should retrace his steps by amending the present budget, but, in considering the financing of the Commonwealth’s operations next year, at least as great consideration should be given to the working class as has been given this year to the primary producers. Not only have the primary producers had a wide range of their purchases exempted from the sales tax, but the primage also has been lifted from many of their requirements. They have received remissions of taxes in other directions. I feel justified, therefore, in making a plea on behalf of those who are contributing annually large sums to Consolidated Revenue by way of sales tax. Prosperity is returning, and with it many concessions are being given to those who have money and I am of the opinion that larger concessions could be granted to the workers. The latter are entitled to a greater share of the benefits which accompany better times; therefore,, the burdens of indirect taxation should be eased. For that reason, while I do not intend to oppose the bill, I counsel the Government, to pay more attention in future to the needs of the masses. Members of the Government party do not hear much about proposed remissions until they see them in a bill in the House. Every part of the Commonwealth is looking to the Government to honour its pledge to remove the emergency taxation, particularly the sales tax, at the earliest possible moment.

Mr BARNARD:
Bass

– I join with those who have protested against the remission of taxes to the wealthiest section of the community. I agree with the honorable member for Barton (Mr. Lane), that in this measure Parliament is granting relief to those who can afford to pay taxes. People with substantial incomes can reasonably be expected to pay taxes. If the Treasurer (Mr. Casey) is able to grant relief, it should be given to those people who are least able t.o bear the burdens. To-day people who find difficulty in meeting the ordinary commitments of life are compelled to pay indirect taxes on everything they buy. I recently suggested to the Treasurer that, before the end of the financial year, he would discover that the revenue would be considerably in excess of that for which he had budgeted. That prophecy has already been fulfilled, yet we are now asked to pass a bill for a reduction of the taxes of a section of the community which can well afford to pay them.

Mr MCCLELLAND:
Wimmera

– I urge upon the Government the necessity for further reduction of the super tax on property income. A few weeks ago, reference was made in the budget speech to the improved condition of the export industries, which is largely the cause of the improved budgetary position. This tax is one of the heaviest burdens imposed on industry, and particularly export industries. The best way to effect a reduction of interest rates would be to reduce the rate of tax on property income, which is one of the chief costs of many of our major industries. Consideration should be given to the abolition of the super tax.

Mr WARD:
East Sydney

.- I join in the protest made by the Leader of the Opposition (Mr. Curtin), and other honorable members,, against the Government’s proposal to reduce the taxes of that section of the community which is well able to meet the imposts levied upon it. Property-owners in industrial areas have recently increased their earnings by raising rentals. I cannot agree with the honorable member for Wimmera (Mr. McClelland) that the tax imposed on income derived from property has the effect, under present conditions, of limiting industrial expansion. Listening to his reasoning, one might imagine that industry was languishing because of lack of capital, rather than because of the difficulty experienced in obtaining markets. A few days ago we were discussing the need for adequate markets for surplus production. The troubles of industry to-day are due, not to a need for the stimulation of production, but to inability to sell the surplus goods produced. The tax on property income, like every other impost, whether direct or indirect, is eventually paid out of industry, and the workers are, therefore, naturally interested in any proposal to remit taxes, or to give relief from taxes to any section that is not entitled to such assistance. The Treasurer (Mr. Casey) has spoken lightly of the proposed remisison of the amount of £200,000 ; but, in my opinion, this relief could well have been given to a more deserving section. For instance, the honorable member for Cook (Mr. Garden) recently submitted certain amendments when we were considering the sales tax imposed on foodstuffs and other necessaries of life which are largely purchased by the workers. I was amazed to hear the remarks of the honorable member for Barton (Mr. Lane), who habitually makes pious protests that are never backed up by his vote in this chamber. His speeches are attempts to delude his electors into believing that he is fighting on their behalf.

Mr Lane:

– I ask for a withdrawal of the expression that I am deluding my electors.

The CHAIRMAN:

– As the remark is offensive to the honorable member for Barton, I ask that it be withdrawn.

Mr WARD:

– To save the time of the committee, I shall withdraw it, although all that I said was that the honorable member was attempting to delude his electors. I am sure “that they are too intelligent to be caught so easily.

It may be contended that injustice will be done to small property-owners by refusing to sanction the proposed reduction of the tax on property income. As a matter of fact, this section will not be materially benefited by this legislation. The honorable member for Werriwa (Mr. Lazzarini) was correct in saying that those who will be most assisted are those who have incomes running into many thousands of pounds a year, and who depend entirely on the income derived from this source. I refer to those who have lived on the backs of the community for many years. I realize, however, that the action of the Government in introducing this measure is quite consistent with its general course of conduct; it has always been a class Ministry, which represents only on© section of the people, and is prepared to do all kinds of oppressive things which are detrimental to the interests of the workers, in order to grant relief to its wealthy supporters.

Mr CASEY:
Treasurer · Corio · UAP

in reply - The Leader of the Opposition (Mr. Curtin) gave me many attractive opportunities to open up a discussion on sources of revenue generally, but I shall resist that temptation. On this and on a previous occasion the honorable member referred to the varying proportions of indirect taxes to the total revenue. I remind him that only during the last twenty years has federal income tax been levied. I also point out that direct taxation is the sole source of revenue to which the State governments have access. Quite rightly they have exploited that field during the last live or six years, in order to achieve as far as possible, balanced budgets. The result has been that Australian citizens, in either their State or their Federal capacity, have had their direct taxes substantially increased. The Government is quite ready to defend this small reduction of a tax which is admittedly an onerous one.

The point was made by the Leader of the Opposition that comparing the taxes imposed on incomes derived from personal exertion with those levied on property incomes, there is a distinct difference in favour of the former, from the taxation point of view. It was also remarked that the curve of taxation in the case of property income is a very steep one. I do not think it can be claimed that those who have large incomes are escaping their proper share of taxation. Several honorable members, led by the honorable member for West Sydney (Mr. Beasley), have advocated increased deductions on account of children; but I point out that that is a matter for consideration in connexion with the assessment bill, and not the rates bill with which we are now dealing. Honorable members who hold that view will have a good opportunity to elaborate it when the new uniform

Income Tax Assessment Bill comes before us in, I hope, a few weeks.

The honorable member for Fawkner (Mr. Holt) asked for further information regarding divisions A and B, which relate to the rates of tax upon incomes derived from personal exertion and from property, respectively. No doubt he was led to ask for it by reason of the fact that there is a one-step formula in regard to personal exertion income, whilst in respect to property income there is a three-step formula. The consideration of this matter takes us back into the history of taxation, and to the time when the “ curve “ was a series of steps. Through alterations by successive governments, these steps had become very irregular, and about four years ago it was decided, at the instance of Professor Giblin, to smooth out the line; but this was not possible without imposing excessive obligations upon certain taxpayers. We have now what I described earlier as a straight-line curve; the phrase created some amusement, but I am impenitent. I can assure the honorable member, however, that no departure has been made from the formula of last year.

Mr.McClelland. - What does the Minister say regarding the effect of the tax on property income upon interest rates?

Mr CASEY:

– That is a matter somewhat apart from this measure ; but, undoubtedly, in conjunction with other taxes, it has a tendency to maintain interest rates, and no comfort, of course, is to be derived from that fact.

Mr E F HARRISON:
BENDIGO, VICTORIA · UAP

– But the present proposal for a reduction by 1 per cent. will tend to lower interest rates.

Mr CASEY:

– Yes; this measure will go a small way in that direction.

Question resolved in the affirmative.

Resolution reported.

Standing and sessional orders suspended; report adopted.

Ordered -

That Mr. Casey and Mr. Paterson do prepare and bring in a bill to carry out the foregoing resolution.

Bill brought up by Mr. Casey and passed through all stages without amendment or debate.

page 1760

WAR SERVICE HOMES BILL 1935

Second Reading

Debate resumed from the 31st October (vide page 1.205) on motion by Mr. Thorby -

That the bill be now read1 a second time.

Mr FORDE:
Capricornia

.- Insofar as this measure gives some relief to the widows and widowed mothers of A.ustralian soldiers, as defined in section 4 of the War Service Homes Act, it has the support of the Opposition. I hope, however, that the Minister will include a provision to give the bill a retrospective effect. Many widows have lost their homes, and the Minister should see that every one is re-instated.

The principal purpose of this bill is to ensure that widows and widowed mothers are enabled to remain in their homes for the rest of their lives, and a feature of the measure is that the Minister will administer its provisions. Consequently, the Minister, who is responsible to Parliament, will be enabled to take a humanitarian view of the various cases which are brought under his notice. The bill provides that where a widow or widowed mother is unable to continue payments in connexion with the home, the total amount of the instalments may be paid out of the trust fund to liquidate her obligation to the War Service Homes Commission.

Mr Thorby:

– Total or part.

Mr FORDE:

– Yes. The Minister stated in his second-reading speech that-

Such payments, of course, reduce the liability on the home and increase the owner’s equity.

Mr Thorby:

– That is the liability to the commission. It becomes a first charge on the trust fund.

Mr FORDE:

– In another part of his speech the Minister said that the debt of the widow is not being increased. In respect of a widow who is unable to pay anything off her mortgage to the War Service Homes Commission, the Minister’s contention will be found to be incorrect. Let us assume that the widow owes £600 to the commission on a war service home. According to the Minister, the average rate of repayment is £1 a week, including interest and principal. To meet her payments to the commission, therefore, she would in effect, be obliged to borrow £52 a year from the trust fund, carrying an interest rate of 4 per cent. Consequently she would pay interest on two amounts - one on the original loan from the commission, and the other on the money borrowed from the trust fund, at a rate of 4 per cent. I admit that this is an everyday business transaction. But assuming that at the end of ten years the widow dies or wishes to dispose of the property, instead of her equity being increased, as the Minister stated in his second-reading speech, it will actually be decreased. If a widow owed £600 and was not in a position to pay anything, a sum of £52 a year would be taken from the trust fund to be paid to the commission. Of this amount, in the first year approximately £24 would be absorbed in interest, and £28 would be paid off -the principal. The interest would, presumably, be paid on the principal outstanding. At the end of ten years, the principal would have ‘been reduced by approximately £340, leaving an amount of £260 still owing to the War Service Homes Commission. If the widow had, in effect, to borrow £52 a year for ten years from the trust fund to meet her commitments to the commission, she would be obliged to pay interest on that loan, and her liability in this respect at the end of the period mentioned would be £520 plus £114 interest, making a total of £634. Thus, after ten years, the widow would still owe the commission £260 on the original £600 that she borrowed, plus £520 from the trust fund on which £114’ in interest had accumulated - a total liability of £894. She would also have paid £185 in interest on the £600 originally borrowed from the War Service Homes Commission and she would owe £114 in interest on the £520 borrowed from the trust fund. These figures reveal that interest payments on the money borrowed from the Waa- Service Homes Commission and from the trust fund, would absorb approximately £300. Even if the widowwere able to pay a few shillings a week, her equity would be practically nil, as the property would depreciate with the passing of the years and its value would not ‘be comparable to the sum originally paid for the home.

Mr Lane:

– But the widow has possession until her death.

Mr FORDE:

– I admit that some advantage is derived from that provision, but the equity does not increase, as the Minister led the House to believe. As to what should be regarded as the income of a widow, the Minister should give a more explicit explanation. He referred to income as “pensions, contributions from her family, or other sources”. In what way will the Minister differentiate, for example, between the wages that the children may receive and what he considers they should pay to their mother? In many cases, the widow may not have as much control over her children’s wages as the Minister might expect. Consequently, it would not be fair to assess an amount on, say, the earnings of a family irrespective of the amount received by the widow.

Mr Thorby:

– Not even ;f the children use the home ?

Mr FORDE:

– In such circumstances, 1 think it would be fair to take into consideration ‘some contribution that they should make.

Mr Thorby:

– That is all that is proposed.

Mr FORDE:

– There are cases in which the children will pay practically nothing. It all depends on how sympathetically the Minister administers this act. I propose now to refer to the case of a widow who is desirous of relinquishing her property. After all expenses have been met, she may have a balance of £100 to her” credit. In such an event, would the Minister pay the widow the full amount due to her, or would she have to wait until the new purchaser paid it off in weekly instalments? This bill will apply to .those widows of returned men who are purchasers of homes and not to those widows who are recognized as being only tenants, although they may be living in the identical home that their husbands had contracted to buy. I shall cite a case in point. A soldier contracted to purchase the home and when he died his illness had so enfeebled his widow that she did not take out letters of administration. Consequently, the house reverted to the commission after a given period. At the time of the husband’s death, no arrears were owing on the dwelling. The -man had deposited £15S in order to borrow £700, and had spent another £30 on improvements not provided for in the plans. The widow arranged to rent the house as a tenant at 10s. a week. In September last, legal proceedings instituted against ber culminated in an eviction warrant being issued. The arrears of rent were less than £50.

Mr Thorby:

– Were these proceedings taken against a widow ?

Mr FORDE:

– Yes.

Mr Thorby:

– If the honorable member will furnish me with her name, I shall have inquiries made into the matter.

Mr FORDE:

– Morally the woman has an equity of approximately £150, but because of her ignorance of legal, procedure, she lost the home and was evicted. The commission denied thai she is or was a purchaser, and according to the letter which the Minister forwarded to her friends, any one in a similar position would not be entitled to relief under this measure. Many widows have surrendered their rights voluntarily to become tenants on the commission’s terms, and have economised in every way to retain a. home which is of some sentimental value to them. I should like the Minister to say whether the measure will be extended to widows whose husbands were purchasing war service homes regardless of whether the widow is or is not to-day recognized as the purchaser. However, as the bill gives some relief to the widows of returned soldiers and widowed mothers the Opposition intends to support it.

Mr GARDEN:
Cook

.-There are several phases of this measure to which I wish to direct the attention of honorable members. The Minister has not explained why it is proposed to appoint the Commissioner for a term of seven years instead of three years as previously. I agree with what the Deputy Leader of the Opposition (Mr. Forde) has said regarding the effect of this measure upon widows whose husbands were purchasing war service homes. If a widowed mother, with the assistance she may receive from members of her family, is able to pay the amount required, she will be able to retain the home, but if that amount is not forthcoming she will have no security whatever. Apparently the small amount received from her family will be regarded in the same light as under the Permissible Income Relief Act of New South Wales, and it will, therefore, be taken into account. If the amount which the commission demands is not paid-

Mr Mahoney:

– She will be pushed out of the home.

Mr GARDEN:

– Yes, she will be evicted. That is one of the points which I wish to bring under the notice of the Minister. If the Government would adopt the provisions of the Queensland act relating to workmen’s homes, the widows of returned soldiers would derive some benefit. Under that act the person who undertakes to purchase a home in 30 years takes out a life assurance policy on which he pays the premium. When the purchaser dies all further payments cease, and the home becomes the property of the widow. The average life of the purchaser, after effecting the purchase is fifteen years, so that repayment of interest and principal extends on an average over a period of fifteen years instead of 30 years. Even if the purchaser dies at the end of, say, four or five years, the widow receives the property free of all debt. That is an infinitely better scheme than that embodied in the bill which provides that if the widow cannot continue to pay the amount demanded by the commission she has to vacate the property. If a widow is in possession of a property on which £600 is owing she will, in ten years, have paid £337 off the principal, but she will still be owing £263 to the commission. If she is unable to pay the weekly instalment of £1 and is assisted to that amount from the trust fund, she will in ten year3 have incurred a debt to the fund of £520, plus £114” for interest. She will still owe £263 to the commission ; thus, her total liability will have increased to £897. In addition, she would also have paid rates and taxes and maintenance costs. Instead of receiving some relief her indebtedness will have increased. The capital debt on the property will be increasing all the time. If the widow should die no other member of the family can assume responsibility for the indebtedness; but, if she should remarry, the husband may take over the liability if he so desires. If he should decline to do so she loses all that she has paid. In committee I propose to move that, after section 36a of the principal act the following new section be inserted : - 3fin. The purchaser shall effect and until the contract of sale is fully performed keep in operation an insurance upon his life in an amount sufficient to pay to the Minister, in the event of the death of the purchaser, the full amount of the unpaid purchase money and other moneys secured by the contract of sale and this act. Such policy of life assurance shall be assigned to and held by the Minister: Provided that the Minister in his discretion may accept in lieu of the policy of insurance aforesaid any existing policy of life assurance which is in the Minister’s opinion a sufficient security.

Mr Thorby:

– Prom what is the honorable member quoting?

Mr GARDEN:

– Prom the Queensland act. If that provision were embodied in the bill there would be some security for the widow and the home would revert to her children, and not to the Government. The Government is always safeguarded, because whatever amount may be paid prior to the death of the purchaser, the Government can repossess the property if the widow cannot continue the payments. We speak sometimes of the action of unscrupulous landlords who “ take people down “ ; but the Government is putting over the same trick.

Mr Thorby:

– Does the honorable member suggest that this bill is a trick.

Mr GARDEN:

– It is in ‘so far as the Government loses nothing, and may eventually obtain possession of a property which was being purchased by a returned soldier with his war gratuity and any other money he was able to raise. If the widow is unable to continue the payments the equity of the purchaser is gone, and the Government does not lose a penny. Under the Queensland homes purchase scheme the purchaser insures his life, and on his death the home becomes the property of the widow without further payment.

Mr Lane:

– Who pays the premium?

Mr GARDEN:

– The purchaser of the home pays, say, £4 a month, and assures his life, but the average life of a purchaser after commencing to buy the home is not more than fifteen years.

Mr McEwen:

– Is it compulsory life insurance?

Mr GARDEN:

– Yes.

Mr McEwen:

– Is there any medical examination ?

Mr GARDEN:

– Yes; but that is not dealt with in the section which I have quoted. Under the Queensland act the occupants of homes and their widows are protected. Is the £5,000 to be expended the limit of the Government’s liability?

Mr McEwen:

– The bill also says “ and such other moneys “.

Mr GARDEN:

– I cannot see how the purchaser’s equity in the home is to be safeguarded, as the indebtedness will increase. The debt on a property costing £600 may increase with trustfund payments, water and sewerage rates, and charges for painting and repairs, &c, at the rate of £100 a year, so that in ten years the property may cost over £1,500. The Minister also said that, following the death of the widow, the members of her family would be able to realize on the home and thus discharge the debt due to the commission; but, as I have shown, the value of the home will be far below the amount of the indebtedness. The Minister also said that under this scheme payments would be made from the trust fund to meet the instalments, and that the accrued debt, including interest on the amount advanced from the trust fund, would be a first charge against the home. It seems to me that it would not matter much whether the debt was a first or a, last charge on the home, because the debt would be constantly increasing, and at the end of ten years, on an original debt of £600, the liability would be at least £897. Then the Minister went on to explain that, if the widow remarried, the husband would accept the full responsibility for any payments made from the trust fund. I doubt that, in the circumstances mentioned, the husband could reasonably be expected to take a double risk - the widow and the indebtedness on her home. His position would be analogous to that of the fly, invited by the spider to walk into her parlour.

I hope that the Minister will give careful consideration to the amendment which I have suggested, together with the reasons given for its acceptance, and that even at this late hour, he will incorporate in the bill liberalizing provisions of the nature indicated, so that the scheme may be of some real benefit to war widows.The original war service homes scheme was drawn up very hastily.

The home endowment scheme established by Arthur Rickard and Company Limited, of Sydney, is one which I commend to the Minister. Under that scheme the purchaser takes out a life insurance policy for the amount of the debt on the home, and should he die before the expiration of the term fixed for repayments, his widow is given a clean discharge of the debt. The weekly payments in respect of a home of a value equal to that of a war service home are, I think, only about 2s. a week in excess of the payments under the State Government scheme which are again far lower than the rate paid under the war service homes scheme. The homes of the soldiers have been over-capitalized.

Mr Thorby:

– Is the honorable member aware that the returned soldiers flatly refused to have anything to do with the insurance scheme which I put to them?

Mr GARDEN:

– I do not know what scheme the Minister suggested, but I feel sure that if it were on the lines of the Queensland proposal or the Rickard endowment . scheme, the returned soldiers would welcome it. It is apparent that, in order to disarm criticism and perhaps also to silence public outcry, following evictions of widows, the Government has brought forward this scheme.

Mr Thorby:

– No; we are providing for all those who have vacated their homes during the last five years.

Mr GARDEN:

– I have not suggested that this Government alone was responsible for the eviction of returned soldiers from war service homes.

Mr Thorby:

– Why was not action along these lines taken before?

Mr GARDEN:

– I am unable to say, but I know that all the agitation against eviction of soldiers and their widows from their homes has come from this side of the House.

Mr Lane:

– That is not true.

Mr GARDEN:

– I hope that the Minister will accept the suggestions which 1 have made and include in the bill adequateprovision to safeguard war service homes purchasers by life insurance policies.

Mr LANE:
Barton

.- I congratulate the Assistant Minister (Mr. Thorby) and the Government on the measure, and I wish at the outset to correct a wrong impression caused by the remarks of the honorable member for Cook (Mr. Garden), who said that all the agitation for liberalization of the provisions of the War Service Homes Act came from one political party. Ever since I have been a member of this House, I have consistently advocated relief along the lines of this bill. By invitation, I have attended many meetings to consider the difficulties of purchasers of war service homes, and on no occasion have I heard my political opponents advocate the adoption of a life insurance scheme. To-night, for the first time, we have had honorable members opposite urging that the Government should include such a provision in the bill so that, in the event of the death of the soldier purchaser, the widow would have her home free of all charges.

Mr Ward:

– That is not true.

Mr LANE:

– I repeat that I have never heard such a proposal advocated at any of the meetings which I have attended.

The bill contains provisions which will be of substantial benefit to the widows of returned soldiers, and it should command the support of every honorable member. Under the Government’s scheme, should the husband die, the widow will be entitled to live in the home at a nominal rental, but if she is unable to meet this charge the house will not be taken from her. An honorable member referred to the ejectment of a widow because she was in arrears with her rent to an amount of £50. If that happened, all that I can say is that her representative in this Parliament did not look after her interests very well. I am acquainted with the case of a woman who has paid no rent for two years and is still in occupation of the premises. She has a child sis years of age, and out of her income of 32s. 6d. a week she will be asked, under this scheme, to paya bout 8s. a week.

Mr Ward:

– That is too much.

Mr LANE:

– No proposal of this Government would be regarded by the honorable member as having any value. The Government which he supported destroyed the possibility of a poor man getting anything. He knows that this Government has made steady progress towards the rehabilitation of every class of the community. Under the provisions of this measure, any widow who cau show that she is not capable of earning anything will be allowed to remain in her home without payment until her death. Is that of no value? Will honorable members opposite vote against it? I have always urged returned soldiers to advocate what is practicable. I assure this House that at no meeting within the last three years - and I have attended almost every meeting called by the War Service Homes Purchasers Association, outside as well as inside my electorate - have I heard honorable members of the New South Wa.les State Labour party who sit opposite advocate an insurance scheme. If I cannot see how such a scheme could be adopted by the Government, they will charge me with having refused to support it. That is not my attitude at all. But I do refuse to be led by them, for the simple reason that they have always landed the workers in all sorts of difficulties. That will be the experience of widows of returned soldiers if the beneficial provisions of this bill are not enacted. The Minister has said that if airy widow has been evicted within the last five years she will be permitted to return to a suitable home. Honorable members opposite do not espouse the cause of these widows, but merely advise them to let the Government put them out of their homes. A photographer from the Labor Daily or Truth is sent to take a photograph, and her difficulties are blazoned throughout the State with the object of obtaining a political advantage.

Mr Thorby:

– No widow has been evicted by this Government.

Mr LANE:

– I am aware of that.

Mr. SPEAKER (Hon. G. J. Bell).Order! I have several times called the honorable member to order, and asked him to discuss the bill. Bus latest remarks are purely an attack upon certain honorable members because of what they have done outside this House, and have no connexion with the bill. If he will confine his remarks to the measure I shall ensure that he is not unduly interrupted.

Mr LANE:

– I assure honorable members that they will do the right thing if they support the bill, which will prove a blessing to those unfortunate women who have lost their husbands. I have always maintained that the scheme of war service homes is of very little value to the returned soldier. A widow who takes over a property on which there is a liability of £600 or £800 has no chance of ever becoming the owner of it. That applies also to the returned soldier on the basic wage who assumed responsibility for the liability in more prosperous times when he was earning £5 or £6 a week, and has since had his wages reduced. I agree with the honorable member for Cook (Mr. Garden) that the capital values of these homes are too high. A mau upon a very low wage will never own one of these homes although he is given 38 years to complete the payments on it.

Mr SPEAKER:

– Order ! The honorable member must realize that the matter he is now discussing is not dealt with in the bill.

Mr LANE:

– The point that I am. making is that a widow with a small income cannot hope to discharge a liability amounting to £800. Even on an income of £3 a week it would take her about 30 years to complete the payments, and there is grave doubt as to whether she would ever possess the property. I covered my indebtedness with insurance as soon as I purchased a home 30 years ago, but I had only a liability of more than £400. No woman can expect to own a property on which the indebtedness is £800. The bill embodies one of the most humane provisions that for a long time this House has been asked to consider, and I give the Assistant Minister (Mr. Thorby) the major portion of the credit for it. Almost immediately upon his appointment to the Ministry I had an interview with, the honorable gentleman. He then said “ If ever I have the opportunity, one of the first things that I shall do is to make provision for the widow of a returned soldier to have her home until she dies. If she is not able to make any payment, she will have it without charge; and any charge made will be in accordance with her ability to pay.” I hope that honorable members opposite will do nothing that might destroy the effectiveness of this measure. It is not a trick, as the honorable member for Cook has suggested. The Government is not seeking to injure the widows of returned soldiers, but is honestly and sincerely attempting to afford them relief. This is one of the best measures that this Parliament will ever be called upon to pass.

Mr McEWEN:
Echuca

.- This bill may be described as one of the most generous measures ever brought before this Parliament. I, however, do not choose to regard its proposals as an example of generosity on the part of the Government. Rather do I think that they are indicative of a very acute sense of responsibility towards exsoldiers and their widows. But I point out that the widows of another section of returned soldiers who have had consideration extended to them by this Parliament, are not yet similarly covered. I refer to soldier settlers who it was intended should be just as Well treated as a reward for their war service. The predecessors of the present Government arranged with the different States to cater for these men. but on the basis adopted it was quite hopeless to expect successful results to accrue. It is well known that the soldier settlement undertaken by the States on behalf of the Commonwealth has been a complete failure, and has led to a chaotic state of affairs arising.

Mr SPEAKER:

– Order ! The honorable member will not be in order in discussing soldier settlement.

Mr McEWEN:

– Many widows of exsoldiers who took up land have been left without a home over their heads. The Government proposes to cater for the widows of those ex-soldiers who took advantage of the War Service Homes Act, but its work will not be completed until it. has also given equal protection to the widows of ex-soldier settlers.

The honorable member for Cook (Mr. Garden.) has proposed a form of compulsory insurance for the purchasers of war service homes by which their widow* would receive a clear title to their homes at their death. Worthy as his object is, I believe that his amendment would really defeat its own purpose. The bill is evidence of the Government’s realization of the obligation resting on the people of Australia to provide homes for the widows of ex-soldiers who undertook to purchase war service homes. It proposes that such widows shall be assured of a home’ over their heads during their lifetime with no payment whatever in some cases. It even provides for the payment of rates and taxes, and for the maintenance of the homes. This legislation places on the shoulders of the whole community the responsibility for providing homes for widows of ex-soldiers. The proposal of the honorable member for Cook really means that ex-soldier purchasers of war service homes who still live would have an additional burden placed upon them, in that they would be required to provide homes for the widows of their deceased comrades. The honorable member’s proposal is only half-baked, because any scheme of compulsory insurance which does not provide for a medical examination would probably lead people not in good health and with only a short expectation, of life to become home purchasers, as a means of assuring a home for their dependants, thereby placing an undue burden on the insurance fund. The honorable member’s proposal is, however, worthy of consideration in the case of homes for other than ex-soldiers. Any sound scheme of insurance must stand actuarial investigation ; but although the honorable member for Cook has not suggested any actuarial investigation of his scheme, it is not on that ground that I differ from him in regard to it. The honorable member suggests that the responsibility for caring for the widows of ex-soldiers should be borne by the purchasers of war service homes who are still living.

Mr Garden:

– I did not say that.

Mr MCEWEN:

– The honorable member did not realize the implication of his proposed amendment. I am entirely with the Government in its assumption of responsibility for providing homes for the widows of- ex-soldiers for the remainder of their lives.

Mr JENNINGS:
Watson

.- 1 compliment the Minister (Mr. Thorby) on having introduced a measure which will receive the approbation of all organizations of ex-soldiers, as well as of other organizations in the community which are concerned with the welfare of the dependants of ex-service men. Although no legislation can compensate women for the loss of their husbands, the bill will help the widows of ex-soldiers to face problems which would not have been theirs in other circumstances. The object of this legislation is to give security of tenure to war widows whose husbands, if they had lived, would have been able to support them and place them in more affluent circumstances than those in which they find themselves to-day. The provisions for the payment of rates and taxes, and for the repair of the home in certain circumstances, will be of great assistance to them. I doubt whether any association of returned soldiers would consent to a compulsory scheme of insurance. Possibly the Minister can enlighten us regarding the views of the soldiers’ organizations, with whom he has, no doubt, discussed the question. The bill, which should be received with general approval, contains no contentious clauses, and I hope that it will have a speedy passage through the House. It legislates to help the women whose men paid the great sacrifice for Australia. ‘

Mr RIORDAN:
KENNEDY, QUEENSLAND · ALP; FLP from 1931

.- Seeing that the Minister (Mr. Thorby) has assured us that the bill is acceptable to the purchasers of war service homes, and that they have refused a scheme of compulsory insurance, the Opposition will not oppose it. Already about £29,000,000 has been invested in homes for soldiers throughout Australia, the total number of such homes being 36,895. The reason why the returned soldiers’ organizations, as we are told, have rejected a scheme of compulsory insurance may be that the youngest exsoldier in possession of a war service home would be about 35 years old. Under the Workers’ Homes Act of Queensland, repayments are spread over 30 years, with the result that the annual payments are comparatively small. The premiums depend on the value of the house and the age of the purchaser. A deposit of 5 per cent, on the value of the homes is required. In the case of a house worth £600, the deposit would, therefore, be £30, whereas under the War Service Homes Act, the deposit was originally 10 per cent.

Mr Thorby:

– In some cases no deposit was required.

Mr RIORDAN:
KENNEDY, QUEENSLAND · ALP; FLP from 1931

– The great thing, about the Queensland legislation is that immediately the home purchaser signs the contract he is insured, so that should he be killed in an accident within an hour, the home is built and handed over to his widow free of debt. Should he remain alive during the full 30 years provided in the act, he obtains the freehold of his home and also a life insurance policy valued at about £600. He may, however, take advantage of the “ disappearing policy “ under which he pays a lower rental and at the end of 30 years owns his home, but the policy then lapses.

The war service homes erected in different parts of Australia are greatly overcapitalized. In Queensland it is not difficult to find in close proximity to war service homes, workers’ homes which although built at a lower cost, are superior to the war service homes. Largely because of excessive prices paid, for land, most of the homes built for ex-soldiers are valued at too ‘high a figure. Because of illness, probably due to war service, or broken time in employment, or the smallness of their pensions, many purchasers get into arrears with their payments. At the end of every five years or six years they have to repaint the homes and effect various repairs. This entails borrowing until the majority of purchasers find themselves faced with a rate of repayment for interest and redemption which they cannot meet. This bill gives some concession to the widows of returned soldiers, but where occupants of a war service home are in employment and earning income, and are expected to make contributions towards repayments on the home it should be possible to insure, say, a young member of the family, about 23 or 24 years of age, and arrange for the purchase of the home at a rental rate which would be inclusive of the amount of a premium on that insurance policy.

Mr Thorby:

– That can be done now.

Mr RIORDAN:
KENNEDY, QUEENSLAND · ALP; FLP from 1931

– Can the life of a young member of the family be insured so that in the event of his or her death the value of the policy may be used towards the paying off of the home?

Mr Thorby:

– Yes; but in all such cases the insurance policy would have to be made over to the Commissioner of War Service Homes.

Mr RIORDAN:
KENNEDY, QUEENSLAND · ALP; FLP from 1931

– Would the premium on the insurance policy be included in the rental?

Mr Thorby:

– Yes, it would be in addition to the instalment.

Mr RIORDAN:
KENNEDY, QUEENSLAND · ALP; FLP from 1931

– In Queensland, a son, aged about 24 years, who is the main, support of his widowed mother would, in respect of a house valued at £600, pay about 16s. a week for 30 years. The rental he pays is a rate assessed as being sufficient to cover, not only purchase instalments and insurance, but also repainting and depreciation over the full period. Where the son of a returned soldier can do this he and his mother are much better off, and the anxiety of the mother to receive the benefits of the repayments already made by the deceased husband is met.

Mr Thorby:

– In Queensland the premium on an insurance policy on the life of a young man 25 years of age would be £11. 10s. per annum on an insurance policy to cover a liability of £800. I am prepared to agree to a similar arrangement being made to-day with any purchaser of a war service home.

Mr RIORDAN:
KENNEDY, QUEENSLAND · ALP; FLP from 1931

– And to include the insurance premium in the rental?

Mr Thorby:

– It amounts to that, although actually the premium will be payable to the insurance company.

Mr RIORDAN:
KENNEDY, QUEENSLAND · ALP; FLP from 1931

– Well then, there is nothing wrong with the bill.

Mr ARCHIE CAMERON:
BARKER, SOUTH AUSTRALIA · CP; LP from 1944; LCL from 1951; LP from 1954

– Although I studiously avoid bringing up matters of a district nature in a debate of this character, I desire to bring under the notice of the Minister in Charge of War Service Homes (Mr. Thorby), a purely South Australian matter, which was considered to be of such importance that a few years ago the Hill Government appointed a royal commission to inquire into it. Like many other royal commissions this one made certain recommendations, but as yet not one of them has been given effect. My remarks concern the town of Murray Bridge in my electorate, where subsequent to the war a large number of war service homes was built, not only by the War Service Homes Commission, but also by the State bank, acting in co-operation with the commission. At that time Murray Bridge was an important railway centre. However, following the importation of an American, who was appointed Railways Commissioner in South Australia, these men were transferred to Tailem Bend, some fifteen miles away. At this place the Railways Commissioner built houses and the men were compelled to rent them, whether they required them or not. The result was that these men, all of whom were wageearners, were placed in occupation of houses for which they had to pay rent at Tailem Bend whilst they were under a liability in respect of houses at Murray Bridge.

Mr SPEAKER:

– Order ! I ask the honorable member to show the relevancy of his remarks to the bill.

Mr ARCHIE CAMERON:
BARKER, SOUTH AUSTRALIA · CP; LP from 1944; LCL from 1951; LP from 1954

– I am dealing with war service homes.

Mr SPEAKER:

– The bill does not deal with every phase of war service homes.

Mr ARCHIE CAMERON:
BARKER, SOUTH AUSTRALIA · CP; LP from 1944; LCL from 1951; LP from 1954

– I understand, Mr. Speaker, that when a bill is introduced to amend the War Service Homes Act the only limitation to a second-reading debate on the measure is the scope of the act which it is sought to amend. I should like to know if in this debate we are confined merely to what is contained in this measure, or whether matters although actually outside the measure, but nevertheless within the scope of the act. can be discussed?

Mr SPEAKER:

– I have allowed honorable members a little latitude on this debate, in putting forward arguments why alternatives to the provisions of the bill should be brought down, but the honorable member must realize that anything he wishes to discuss in regard to war service homes must in some respect be relevant to the provisions of the bill.

Mr ARCHIE CAMERON:
BARKER, SOUTH AUSTRALIA · CP; LP from 1944; LCL from 1951; LP from 1954

– Will you rule out of order. Mr. Speaker, any reference I make to any aspect of war service homes not dealt with in this bill?

Mr SPEAKER:

– I would first require to hear the honorable member’s remarks before deciding whether he was or was not in order. At the moment I am merely asking the honorable member to connect his remarks with the bill before the House. Debate must be relevant to the bill.

Mr ARCHIE CAMERON:
BARKER, SOUTH AUSTRALIA · CP; LP from 1944; LCL from 1951; LP from 1954

– May I suggest, Mr. Speaker, if I understand the procedure correctly, that until the bill has been read a second time, an honorable member i3 entitled to forecast any amendment which comes within the scope pf the act the measure is proposed to amend.

Mr SPEAKER:

– Any amendment relevant to the bill.

Mr ARCHIE CAMERON:
BARKER, SOUTH AUSTRALIA · CP; LP from 1944; LCL from 1951; LP from 1954

– Oh, no.

Mr SPEAKER:

– The honorable member may not argue with the Chair. He may proceed with his remarks, but they must be relevant.

Mr ARCHIE CAMERON:
BARKER, SOUTH AUSTRALIA · CP; LP from 1944; LCL from 1951; LP from 1954

– The matter I desire to discuss is of considerable importance from my point of view, and has been the subject of correspondence between the Minister and myself; but, as I still feel that the Minister is not yet fully seised of the facts as I know them, I crave this opportunity to place them before him. These facts are relevant to the case with which I am dealing, and I am putting them forward with a view to securing redress for certain people to whom I owe responsibility. I repeat that the South Australian Government viewed this case so seriously that it gave to a royal commission which was then inquiring into railway matters additional power to report upon the conditions and responsibilities of these particular men at Murray Bridge.

Mr SPEAKER:

– It appears to the Chair that what the honorable member wishes to discuss is quite outside the scope of the bill.

Mr ARCHIE CAMERON:
BARKER, SOUTH AUSTRALIA · CP; LP from 1944; LCL from 1951; LP from 1954

– I arn quite at a loss to know ho.w an honorable member is to discuss matters of this nature.

Mr THORBY:
CP

– They may be discussed on the Estimates.

Mr ARCHIE CAMERON:
BARKER, SOUTH AUSTRALIA · CP; LP from 1944; LCL from 1951; LP from 1954

– I have too much already to say on the Estimates. In any case, I am dealing with war service homes, and this is a hill to amend the War Service Homes Act.

Mr SPEAKER:

– Only in certain respects which are definitely set out in the bill.

Mr ARCHIE CAMERON:
BARKER, SOUTH AUSTRALIA · CP; LP from 1944; LCL from 1951; LP from 1954

– I am attempting in this matter, Mr. Speaker, to be fair to you, to myself, and to the people whom I represent in this House. A considerable number of my constituents have certain grievances in respect of war service homes.

Mr Thorby:

– I cannot deal with that point in this bill.

Mr ARCHIE CAMERON:
BARKER, SOUTH AUSTRALIA · CP; LP from 1944; LCL from 1951; LP from 1954

– I should bo extremely obliged to the Minister if he could inform me where I could deal with this matter.

Mr SPEAKER:

– The honorable member, as an old parliamentarian, and as an experienced member of this House, must realize that he cannot take any opportunity to discuss a matter in this House merely because it is the subject of a grievance in his electorate. The question before the Chair is the only matter than can be debated.

Mr ARCHIE CAMERON:
BARKER, SOUTH AUSTRALIA · CP; LP from 1944; LCL from 1951; LP from 1954

– This is a bill to amend the War Service Homes Act, whereby the Government seeks to redress certain anomalies which it considers exist in war service homes legislation. I should be very much obliged to you, Mr. Speaker, if you could give the House a definite ruling as to whether the Crown only has the right to suggest amendments of this legislation. I understand that, once a bill is brought down, in order to effect an amendment of an act, there is no limit to which honorable members can go in order to amend that act still further. I should like to know whether you, Mr. Speaker, rule definitely that honorable members are allowed to discuss only those grievances which the Government desires to have redressed.

Mr SPEAKER:

-I am surprised that the honorable member still protests. I do not desire unduly to circumscribe honorable members in debate. I wish to be patient, and I think honorable members will agree that I have been very patient with the honorable member. The meaning of the bill is clear. It seeks to amend the War Service Homes Act in certain respects, which are very definitely set out. An honorable member may move an amendment to the bill, but, the rule of relevancy must always be observed in respect of either amendments or debate.

Mr ARCHIE CAMERON:
BARKER, SOUTH AUSTRALIA · CP; LP from 1944; LCL from 1951; LP from 1954

– I candidly admit that I find myself at the moment up against a new problem in parliamentary procedure.

Mr SPEAKER:

– The honorable member must observe the Standing Orders.

Mr ARCHIE CAMERON:
BARKER, SOUTH AUSTRALIA · CP; LP from 1944; LCL from 1951; LP from 1954

– In my experience I have not yet found myself in a position in which I have not been allowed, on the second reading of an amending bill, to discuss other things in connexion with the act proposed to be amended.

Mr SPEAKER:

– The honorable member must proceed with his remarks. He cannot argue with the Chair.

Mr ARCHIE CAMERON:
BARKER, SOUTH AUSTRALIA · CP; LP from 1944; LCL from 1951; LP from 1954

– I have never attempted to impede the progress of a debate by bringing up irrelevant matters. At this moment I am attempting to draw the attention of the Minister to a particular position which exists in South Australia so far as war service homes are concerned.

Mr SPEAKER:

– If the honorable member does not’ obey the ruling of the Chair, he must resume his seat. If he desires to discuss something which he can connect with the bill in any respect, I shall allow him to proceed. But his whole argument shows to me that he desires to discuss something which is outside the scope of the bill.

Mr ARCHIE CAMERON:
BARKER, SOUTH AUSTRALIA · CP; LP from 1944; LCL from 1951; LP from 1954

– It is of no use for me to proceed further.

Mr MULCAHY:
Lang

.- I am pleased that this bill has been introduced, for although it will not afford very much actual assistance to the widows of exsoldiers, it will at least assure them of continuity in the occupation of their homes, and give them a sense of security which hitherto they have lacked. Public opinion has, no doubt, compelled the Government to introduce this measure.

Mr Thorby:

– Public opinion has never concerned itself about this particular matter.

Mr MULCAHY:

– I have many occupiers of war service homes living in my electorate, and I know that an active agitation has been on foot for two or three years to obtain relief for ex-soldiers’ widows from the burdensome conditions that at present apply to the occupancy of their war service homes. The honorable member for Barton (-Mr. Lane) knows that this is true. I had not been a member of this Parlament for very long before I had occasion to bring under the notice of the Government the case of a widow who bad been served with an ejectment order in respect of the war service home which her husband, who had been dead for only a few weeks, had been purchasing. This man had paid his instalments over a number of years, right up to the time of his illness; but nevertheless the Campsie court was asked to issue an ejectment order against this widow. The circumstances of this lady were pitiable in the extreme. She was absolutely penniless, and was in grave danger of finding herself and her young children without a roof over their heads. I instructed my own solicitor to appear in court on her behalf to obtain an extension of time for her. Meanwhile the Minister in charge of “War Service Homes (Mr. Thorby) withdrew the summons. I think he will admit that this is true.

Mr Thorby:

– I have withdrawn a number of summonses. I do not remember the specific case to which the honorable member has referred.

Mr MULCAHY:

– That woman would certainly have been ejected from her home had it not been for my intervention.

Mr Thorby:

– The honorable member should have said “ Had it not been for the withdrawal of the summons “.

Mr MULCAHY:

– Public opinion obliged the Minister to withdraw thu summons. The former comrades of this lady’s deceased husband were determined that she and her children should not be thrown out into the street. Other similar cases have come under my notice. If this bill is passed, ex-soldiers’ widows will at least be assured of a home.

The honorable member for Cook (Mr. Garden) suggested to-night that a scheme should be evolved to place war service homes purchasers generally in a better position, and he thereby drew upon himself the criticism of the honorable member for Barton (Mr. Lane) who alleged that the War Service Homes Purchasers

Association was a bogus organization. The fact is that the members of this association, including many men who have kept their payments right up to date, have banded together to protect the interests of the widows and children of their former comrades. I am glad they are displaying the same spirit of comradeship as they manifested between 1914 and 1918 overseas.

During the last twelve months 380 war service homes have been repossessed by the department. I should like to know whether widows who have left their homes, either voluntarily or by force, will be reinstalled in them. What will be the position in respect of those homes which have been re-sold?

Mr Thorby:

– I have definitely promised that all widows who have vacated homes since January, 1930, will be reinstated in a home. I cannot promise that it will be the original home.

Mr MULCAHY:

– Will it be a home of similar value?

Mr Thorby:

– As near as possible.

Mr MULCAHY:

– I am pleased to hear that statement. The Minister also said, in answer to a question by the honorable member for Kennedy (Mr. Riordan1) that he was prepared to apply the provisions of the Queensland act -to war service homes purchasers.

Mr Thorby:

– I did not say that. I said that I’ was prepared to accept the policy of any war service home purchaser in Australia who would insure his life to the amount owing on his home.

Mr MULCAHY:

– That also is a step in the right direction. In determining the income of war widows in possession of war service homes the War Service Homes Commission has hitherto taken into account the amount granted by the Government of New South Wales as widows’ pensions, and also amounts paid as child endowment.

Mr Ward:

– The Minister proposes to continue that policy.

Mr MULCAHY:

– In assessing the amount which she is to pay for the home, does the Minister propose to take .the widow’s pension and the endowment which she receives for her children into consideration ?

Mr Thorby:

– I propose to take into consideration every sum of money which comes into the possession of the widow and the household.

Mr MULCAHY:

– If that is so, I think it i3 a disgrace.

Mr Thorby:

– I said only that such sums would be taken into consideration.

Mr MULCAHY:

– The Minister should not take into consideration child endowment which is paid to the widow for the sustenance of her children. I have no desire to delay the passage of the bill, because I believe it provides a measure of relief to some of those in need, but I hope when the bill reaches the committee stage the Minister will accept amendments which will be proposed from this side of the House in order that a greater degree of- relief may be afforded i.o those in need of it.

Mr HOLLOWAY:
Melbourne Ports

– The mere fact that we are dealing with the hopeless case of soldiers’ widows to-day proves that it would have been wise when the Avar service homes legislation was first introduced to provide a scheme of insurance such as as now suggested by the honorable member for Cook (Mr. Garden). However, I can see difficulties in doing it at the present stage, in view of the general health of the soldiers and the high premiums that would be charged.

Mr Thorby:

– And in view of the age of the soldiers.

Mr HOLLOWAY:

– Yes; also the fact that such a scheme of insurance would not affect those who are already widows. I agree with the honorable member for Barker (Mr. Archie Cameron) that there &re other phases of the purchasers’ difficulties, but as Mr. Speaker will not permit them to be discussed in this bill I must refrain from doing so. The Minister (Mr. Thorby) has made some very good promises which, if carried out - and I have no doubt they will be, and that the provisions of this bill will be sympathetically administered by the department - will result in great benefit to the soldiers’ widows. However, this measure does not touch upon the greatest difficulty under -which the war service homes purchasers labour. The ideal aimed, at when the original war service homes legislation was introduced was that every soldier should be able to purchase a home which he could leave to his widow and children. Nothing in this measure gets us any closer to that objective. As a matter of fact, it definitely ends any possibility of the widow getting possession . of her home. But inasmuch as it ensures her at least a roof over her head as long as she lives it will do some good. If however her income - only on paper - is to be taken into consideration without having regard to the circumstances of the home and family, justice will not be done to the widow.

Mr Thorby:

– I have promised to take into consideration the health of the widow and her children.

Mr HOLLOWAY:

– If that is so, so much the better for the widow, but I agree with the honorable member for Lang (Mr. Mulcahy) that justice will not be done if it is intended to consider the amount of money that comes into the home regardless of the particular circumstances of the family.

Mr Thorby:

– That is why I refused to embody a schedule in this bill.

Mr HOLLOWAY:

– I cannot see how an insurance scheme could be successfully embraced in the bill at this stage; it would not be fair to impose it on the soldier except on a voluntary basis, and, in any case, it would not affect the widows which this bill is designed to assist. I cannot help expressing my disappointment that the bill does nothing to help us in the efforts which we on this side have made for many years to try to retain for the soldier’s widow the home which the soldier endeavoured to pay off. As I have said, I can see in this measure a vanishing of the last possible hope of reaching that objective. The mere fact that the Minister has to resort to the methods which he has outlined in order to maintain a roof over the widow’s head removes the last possible chance the widow has of paying off her home. All that is proposed in order to help her stay in the home will merely increase the liability to the commission. But as I cannot suggest any way of overcoming that particular difficulty I intend to support the bill as a means of assisting the soldiers’ widows.

Mr ROSEVEAR:
Dalley

.- It is not my intention to oppose the passage of this bill, because I realize that at least some one somewhere will gain advantage from it, hut the vast majority of widows will not. The proposal we have before us is merely a tinkering with one of the big problems which the Government has to face. The Government has provided 36,895 war service homes, which means that there are practically an equal number of families depending upon it to do something to extricate them from the difficulties in which they find themselves to-day. Out of the total number of homes provided only S,565 have been paid off up to the present time, and according to the War Service Homes Commissioner’s report, 2,602 have reverted to the commission, a very large proportion because those who were endeavouring to pay them off have been evicted by this Government and its predecessors

Mr SPEAKER:

– Order ! The honorable member must discuss the bill before the House.

Mr ROSEVEAR:

– I believe the bill does not go far enough, and that there should be incorporated in it a measure of assistance not only to widows, but also to the many soldier purchasers who find themselves in impossible circumstances, and who, like the 2,602 purchasers already evicted from their homes, are waiting for eviction to come their way. Unless we get right to the root of this problem it will be difficult to appreciate how we can best help the widows, those who have been evicted, and those who, in the near future, are faced with the prospect of eviction. The commissioner’s report discloses that, out of a total of £1S, 000,000 due in instalments up to, the 30th June this year, the arrears amount to over £1,000,000.

Mr SPEAKER:

– Order ! The honorable member knows that I have already ruled that every phase of the administration of the War Service Homes Commission cannot be discussed on this bill.

Mr ROSEVEAR:

– If honorable members are to be limited to that degree, I would like to point out that when the Minister was introducing the bill he went into a good deal of detail, and I am introducing this aspect of the matter in order to reply to his statements.

Mr SPEAKER:

– Order ! I think the honorable member has not yet indi cated that he is replying to anything tha: the Minister said.

Mr ROSEVEAR:

– The Minister has made many promises, and has claimed that widows will benefit as the result of this legislation. I feel that I am entitled to examine the value of his promises by referring to some of his performances. During the last twelve months, more war service homes purchasers have been brought before the courts for the purpose of eviction than during the regime of any previous Minister in charge of War Service Homes.

Mr SPEAKER:

– The honorable member is defying my ruling.

Mr Beasley:

– I rise to a point of order.

Mr SPEAKER:

– No point of order may be raised on my ruling. The honorable member may ask me a question if he wishes.

Mr Beasley:

– The professed purpose of this legislation is to prevent the eviction of widows from war service homes. In the circumstances, the subject of evictions seems to be of paramount importance, and surely honorable members are in order in discussing it.

Mr SPEAKER:

– When I called the honorable member for Dalley to order, he was saying, in effect, that he proposed to challenge the sincerity of the Minister by referring to his past performances. That remark was irrelevant to the subjectmatter of the bill. The honorable member then referred to the number of evictions from war service homes, although I had already ruled that that phase of the subject might not be discussed, except so far as it related to the occupants of war service homes affected by the bill, which deals with certain phases only of war service administration, and contains specific amendments to certain sections of the act.

Mr ROSEVEAR:

– Then we shall try to approach the matter from another angle. The Minister said that the Government would place evicted widows in suitable homes.

Mr Thorby:

– No widows have been evicted that I know of. Some have gone out of their homes.

Mr ROSEVEAR:

– The Minister said that ‘any widows who had been evicted within the last five years would be found homes.

Mr Thorby:

– I said “any who had vacated their homes “.

Mr ROSEVEAR:

– I do not know where the Minister proposes to find all the homes that will be needed. According to the last report of the commission, there are only 59 vacant war service homes in the whole of New South “Wales, and 22 of those are in Lithgow.

Mr Thorby:

– There are 1,454 reverted homes in New South Wales to-day.

Mr ROSEVEAR:

– But there is not that number of vacant war service homes.

Mr Thorby:

– I am not concerned whether they are- vacant or not. Th«y are under the control of the Commissioner.

Mr ROSEVEAR:

– If the Minister runs true to form, he will be more concerned with getting rent from those who now occupy the homes than with making them available for widows.

Mr Thorby:

– That is an unfair statement.

Mr ROSEVEAR:

– If the Minister thinks it unfair, let me point out to him that more purchasers have been evicted from their home3 while he has been in office than during the regime of a previous Minister. He has authorized more prosecutions for the purpose of securing eviction than has any previous Minister who occupied his position. From the 1st August, 1932, to the 31st July, 1933, 08 applications were made in the courts of New South Wales for ejectment orders against war service homes purchasers. During the succeeding twelve months the number was 127. while from the 1st August, 1934, to the 30th September. 1935, during which time the present Minister has been in control, there were 121 applications for ejectment orders.

Mr Thorby:

– The honorable member has not been able to mention one case in which the proceedings were not justified.

Mr ROSEVEAR:

– When the soldiers were going off to fight, they were not told that the courts would examine their affairs upon their return to determine whether or not they should be evicted from their homes. I presume that the Minister cannot guarantee that widows will be placed back in the homes they left. That being so, the question arises who is to determine the suitability of the homes placed at their disposal. Is the matter to be determined by the department or by the widow herself ? I assume that the widow will have to sign a new contract for the purchase of the home, and, if that be so, she should he entitled to choose the home she h to buy.

The Minister suggested ;hat, through the creation of a trust fund, war widows would be relieved of some of their obligations. Hb cited as an example the case of a widow who owed the commission £S00, and said that the monthly instalment on that amount would normally be about £4. If, however, the widow was able to pay only £1 a month, the other £3 would be paid out of the trust fund. I point out to honorable members that, in such a case, the widow would owe the trust fund, at the end of twelve months, £36 for instalments, and £1 10s. for interest, a total of £37 10s. The trust fund would have paid £36 on behalf of the widow, but £32 of that would represent interest, and only £4 would be paid off the capital cost of the building. At the end of twelve months the widow would still owe £796 principal, and, in addition, she would owe the trust fund £37 10s., making a total of £833 10s. That is, assuming that she was able to pay her rates and taxes, but if she were not, and they were paid out of the trust fund, at the end of twelve months she would probably be indebted to the trust fund, and in respect of capital indebtedness, to the amount of £850. It docs not matter to the widow whether her debt to the War Service Homes Commission is charged to the original capital indebtedness or to the trust fund ; the debt would accumulate at the rate of £50 a year, if she were not able to pay the rates and taxes and they were met from the trust fund.

The next question to be settled is the income of the widow. The view taken by the Minister is that everything that comes into her home is to be regarded as her income, but an every-day view of the situ ation should be taken. Everybody, I think, will appreciate the fallacy of the argument that, if three or four children of a widow are each earning a couple of pounds a week, their earnings should be classed as part of her income. Apparently, the same formula will be applied by this Government as is being applied by the Government of New South Wales, which, in assessing the income of a relief worker, takes into consideration the earnings of every member of his family, from the youngest to the oldest child, irrespective of whether or not the parents receive the full benefit of those earnings. Invalid and old-age pensions and every other source of income are also considered. Does the Minister who is the final arbiter in this matter really consider that the war widow or any other widow, for that matter, can be deemed to be in possession of the whole of the earnings of. her family? An every-day view of the facts will lead us to believe that when the children reach ages between 18 years and 24 years, the parents are very lucky if they receive board money. From the remarks of the Minister, however, it is not a question of board, but of the whole of the earnings. He might possibly have used the wrong words, but the implication to be taken from his interjection in reply to the honorable member for Lang (Mr. Mulcahy) is that he is going to assess a widow’s earnings on a scale which will involve consideration of the earnings of her family. I ask him to state whether he believes that a war widow, whether she receives it or not, should be credited with the whole of the earnings of her children.

I am glad that the question of equity has been raised. When the honorable member for Reid (Mr. Gander) made representations to the War Service Homes Commission on this point, it was decided that a person for whom he was acting who was about to abandon a war service home contract had £80 worth of equity in the home. But, when he made application to have that amount paid over to the retiring occupant, he was informed that it would not be available until the person who signed the new contract had paid the whole of the money due to the commission.

Mr Thorby:

– Not the whole.

Mr ROSEVEAR:

– The honorable member for Reid, I think, will bear out what I say. When he wanted the £80 equity after the contract had been handed by one party to another, it was declared by the commission that the £80 would not be paid over until the new contractor had met his commitments. A continuance of that policy will place widow occupants of war service homes in a difficult position. If a widow finds herself not in a position to continue her contract, or is forced by some other circumstances to abandon her home when she has £50 or £60 worth of equity in it, she should be entitled to the money immediately after vacating the premises. She might abandon the home in order to get the money to start in some small business or to enter some new sphere of life. If the commission decides to continue its policy that, until the new contractor pays the whole or portion of the money, the widow is not entitled to it, she should be warned beforehand. When a widow abandons her home in the circumstances I have mentioned, it is natural to assume that she desires the use of the equity at once. The Minister should give a definite indication of what the policy is to be, especially as he made so much of the matter of equity in his speech. He should give an assurance that any widow who abandons her home and has an equity in it will be paid that equity immediately. She should be told that the commission is prepared to take the risk of the new tenant defaulting in payments. The equity is there and the widow who leaves the premises should not be burdened with the risk that the new occupant will not meet the instalments. It is unlikely, however, that many of the widowed occupants of war service homes will have a great deal of equity in the homes, because the average accupant has great difficulty in maintaining payments. Many widows are saddled with arrears at the time of their husband’s death. Although when alive, the husband was able to keep up the payments, very often the widow, when she takes over the lease, gets in arrears to the commission. It is most difficult to see how an equity can exist for long in the case of a widow who owes £800 to the commission if the indebtedness is to be increased by £33 a year, which will mean that any equity which might exist will rapidly disappear.

I appreciate the difficulty facing the Government in considering the formula- tion of any equitable form of insurance to meet the desire of the honorable member for Cook (Mr. Garden) to devise some scheme -whereby people who have contracted to purchase war service homes might get additional protection, but I realize the enormous risk which would be involved in any insurance company insuring the returned soldier occupants of those premises, the youngest of whom would to-day be middle-aged. The risk of insurance is accentuated by the fact that it has been reliably stated that the reasonable expectation of life of returned soldiers has been greatly shortened by their war service. Accordingly, even if an insurance scheme were promulgated, the premiums would be so high that they would be beyond the means of the average purchaser of the homes. But there is a scheme under which the homes are insured, and I understand that the Minister is already giving some consideration to the question of insurance.

Mr Thorby:

– Insurance against fire and other risks.

Mr ROSEVEAR:

– Yes, but this will be not so much to protect the purchaser as to give to the commission a better control of the insurance money. The assurance given to-night to the honorable member for Kennedy (Mr. Riordan) may relieve the situation, because I understood the Minister to give an undertaking that, if an ex-soldier’s widow had a young son or daughter, he would be prepared to allow the commission to arrange insurance on his or her life instead of that of the father or mother. If that be so, the honorable member for Cook (Mr. Garden) has not made his representations to-night in vain.

Mr Thorby:

– That course has always been open to the occupants of these homes._

Mr ROSEVEAR:

– Only those who investigate these matters are fully cognizant of the position, but probably more will become acquainted with it as a result of the Minister’s statement. Although I realize that the assistance to be afforded under this bill will be appreciated by the few who will get the benefit of it, the major problem to be faced is the revaluation of all war service homes.

Mr PRICE:
Boothby

.-This measure 13 the outcome of a good deal of agitation on the part of honorable members, and I am pleased that it has been introduced. It represents a forward step, although it does not give all the assistance tha t could be desired. One would imagine from the remarks of certain honorable members that the Government desired to evict the ex-soldiers’ widows who are in occupation of war service homes; but, after perusing the mass of correspondence on my own files, I cannot find one case in which eviction has occurred. I quite realize that a Minister devoid of humane instincts could, if he chose, evict in certain circumstances, yet the bill before us gives more protection to the occupants than they have enjoyed in the past. I may remark parenthetically that I am not altogether satisfied with the past administration of war service homes generally. In South Australia some of the returned soldier occupants have suffered hardship owing to lack of employment, with consequent arrears of rent, and unfortunately a few have suffered eviction. This bill does not approach the general question of war service homes, but deals with war widows. We have heard to-night many assertions that evictions of war widows have taken place, but I believe that the Minister will be able to inform the House that in no instance has this been the case. This bill is designed to help both the widows and the widowed mothers of ex-soldiers. It is along right lines, and has my support.

Mr BLACKBURN:
Bourke

– I have in my constituency a large number of occupants of war service homes, and as I have no doubt that many of them will look to the reports of the parliamentary debates for ah explanation of the purpose of this bill, the very sanguine and exaggerated estimates of what it will do should be corrected. It has been said by honorable members on both sides that it will confer rights upon widows, but, of course, it will not. It merely empowers the Minister to decide which widow or widowed mother, if any, shall have whatever the bill has to offer. It gives no rights to anybody. No widow or widowed mother has any legally enforceable claim to anything under this measure. The honorable member for Melbourne Ports (Mr. Holloway) and several other honorable members have said that the widow and the widowed mother will hold their houses for life, free of disturbance, but it is not proposed under the bill to confer any such right. The Minister, in the first place, will decide whether the benefits of this legislation will be given to this or to that woman. He can refuse them to one, and grant them to the other. The question arises as to what are the benefits to be conferred under the bill. It does not release the occupant of any obligation to pay purchase money or interest, nor does it release her from her obligation to repay any advance by way of insurance money, or rates and taxes that may have been paid on her behalf by the commission, or advanced out of the trust account. She remains liable to pay these amounts, and the bill makes provision for this at the outset. Sub-section 2 of the proposed new section 29aa provides -

No reduction under this section in the amount of any instalment shall relieve any widow or widowed mother from liability to pay the full amount of the purchase money or repay the full amount of the advance, as the case may be, together with interest thereon.

Under section 34, “ advance “ includes insurance, rates, and taxes, &c, that may have been paid on behalf of the occupant. All she gets, if she receives the Minister’s consideration, is the privilege for the time being of making smaller payments than she would otherwise be called upon to meet. Nevertheless, there remains the power of the Minister, under section 36 of the act, to cancel a widow’s contract at any time upon default for the prescribed period. I do not suggest that the Minister would arbitrarily use that power, but it is vested in him. Another point is that the widow, or widowed mother does not receive the title of the house until she has completed the payments on it. If she falls into arrears, no provision in this bill exempts her from the exercise by the Minister of the powers conferred upon him, under the act. I welcome the measure as it allows the Minister a certain degree of discretion which he appears not to possess at present in dealing with such cases. But it goes no further than that. It merely states that the Minister may, whenever, in his opinion, the demanding of instalments from a widow or widowed mother would be a hardship, reduce the amount of such instalments. But that does not reduce the amount of her debt. She continues to be liable to pay the whole of the debt, and if she falls into arrears for the period of three months prescribed by section 36, legal proceedings to enforce payment may still be taken, and the cancellation of the contract follow. It is a great mistake and a great pity to exaggerate the benefit which this bill confers on widows and widowed mothers. It does not give them, as a right, any security, and it does not provide for their remaining in their houses -without anxiety during the remainder of their lives. At least, one honorable member, apparently, considers that the bill does provide for the widows and widowed mothers to remain in their houses during their lifetime without fear of eviction if they fail to keep up their payments, and that no payments will be required until after their death.

Mr Thorby:

– Who said that?

Mr BLACKBURN:

– The honorable member for Melbourne Ports (Mr. Holloway) for one, stated that the widow would be absolutely secure during her lifetime. The bill makes no provision in that regard, and I welcome the Minister’s admission of it. While not doubting the Minister’s good-will and sympathy, I am merely endeavouring to correct false impressions of the bill in the minds of honorable members. The unfortunate part of it is that such, false impressions may be communicated by the press and the parliamentary debates to the widows and widowed mothers who may be led to believe that the measure confers rights upon them, which it does not. Possibly the bill goes as far as is practicable, and probably it is necessary for the Minister to possess this discretionary power, which he may or may not exercise, to reduce the instalments payable by a widow or widowed mother.

Mr. LAZZARINI (Werriwa) [10.54 J. - If this bill represents the ultimate concessions that the Government can give to widows and widowed mothers, I feel justified in saying that the mountain has laboured and brought forth a mouse. The Minister or honorable members cannot deny that this measure has been introduced because of a constant and persis- tent agitation against the hardships imposed on the widows of soldiers.

Mr Thorby:

– The measure was brought down following a promise given to the purchasers of war service homes, and to returned soldier organizations.

Mr LAZZARINI:

– The Minister took credit for the withdrawal of a summons issued against the occupant of a war service home. As a matter of fact, the returned soldiers threatened to surround the home, and deal with any person sent there to carry out the instructions of the Minister to evict the widow and children. As a result of that threat, the Minister withdrew the summons. Apparently a soldier must die before his wife or children can receive any consideration. While the husband is alive the woman receives no consideration. In my opinion this is a misguided policy. The struggle of a family for existence is often more severe when an infirm returned soldier is living than after his death. The Deputy Leader of the Opposition (Mr. Forde) referred to a certain eviction, and the Minister asked, by way of interjection, whether the woman was a widow. His interrogation proves my assertion; no consideration is given until a soldier is deceased.

Mr Thorby:

– The honorable member is not correct, so far as this bill is concerned.

Mr LAZZARINI:

– In my opinion, this bill confers no benefits whatever on the widows and widowed mothers. The honorable member for Bourke (Mr. Blackburn) explained the position very clearly. If the unfortunate widows and their children are to be dependent on the Minister’s discretionary powers, my experience warns me that they will receive little consideration from the present Government. The object of the bill is to vest in the Crown certain war service homos at present occupied by widows. The harsh and inconsiderate methods of the department have resulted in the throwing of thousands of these homes on the .market. This bill is an attempt to retain a remnant of them in the possession of the commission. The Minister stated that the principal purpose of the bill was to introduce a scheme - a very good word ! To my mind the scheme is designed to “ rope in “ as contributors to the War Service Homes Commission the children, relatives, and future husbands of widows and widowed mothers, in order to retain the few remaining homes within the power of the commission. To contend, as the Minister did in his secondreading speech, that the bill makes provision for the widows, and at the same time secures the revenues of the Crown, is futile. In most instances, if the widows were not in straitened circumstances, there would be no necessity for this measure. The bill obviously postulates the penury of a large section of the widows of returned soldiers, and cannot both secure the home to the widow, who is unable to meet her commitments, and at the same time secure the revenues of the Crown. The debt is being merely transferred from the war service homes accounts to a trust fund and the rate of interest now charged by the Commissioner will be charged on all the accumulated indebtedness. It is simply pretending to do something which cannot be accomplished. The Minister is to have power to take into consideration the amount of income received by widows.

Mr Thorby:

– Who should have that power ?

Mr LAZZARINI:

– The Minister is to have the power to arrange for inquisitorial inquiries into the income of any widow in order to determine the amount she shall be compelled to contribute. The Minister admitted by interjection that everything will be taken into consideration, and that even child endowment, which is paid by certain States, will be included.

Mr Ward:

– And also the value of food relief.

Mr LAZZARINI:

– Yes. everything that comes into the home, whether it be in money or in kind. As the Minister is to arrange for such inquiries to be conducted, honorable members will have an opportunity to ascertain what action is being taken in particular cases; but there is no appeal from the decision of the Minister. I shall oppose clause 2, which provides that the Commissioner shall be appointed foi- a term of seven years instead of three years, as has been the custom previously. If this proposal were referred to the purchasers of war service homes, I know that they would not favourthe re-appointment of the Commissioner for such a long period.

Mr THORBY:
Minister in charge of War Service Homes · Calare · CP

. - in reply - I should like to reply be some of the criticism levelled against this hill, which is designed deliberately to provide relief to returned soldier purchasers of war service homes,to widows, widowed mothers, and wives of war service homes purchasers who are temporarily or permanently insane. The Government has gone out of its way in an honest endeavour to provide a fund from which to pay any amount by which the widow’s contribution is short of her liability to the Commissioner. The honorable member for Werriwa (Mr. Lazzarini) said that the returned soldier has to diebefore his widow can receive any consideration ; but that is entirely wrong. I have already circulated amendments, following upon suggestions made by the honorable member for Hume (Mr. Collins), who directed attention to a particular case which I have used as a basis. The case cited by the honorable member was that of an unfortunate woman whose husband is in a mental hospital, and who is in an infinitely worse position than the widow of any returned soldier. I have always believed that the wife of an insane man is in a worse position than any widow. The amendments circulated definitely provide that the wife of a returned soldier who has become insane will be treated as if she were the widow of the purchaser. I should also like to reply to some comments made by some honorable members, whose sincerity I very much doubt. For instance, the honorable member for Cook (Mr. Garden) said that this bill is a trick, similar to that played on returned soldiers before. There is no suggestion of trickery. The bill is a plain piece of machinery to provide a trust fund to make up the deficiency that may be assessed from time to time in connexion with the liabilities of any widow, and to pay to State governments or municipal authorities arrears of taxes or rates, fire insurance on properties, and the cost of repairs. The . honorable member for East Sydney (Mr. Ward) said that the measure does not confer any benefit upon widows.

Mr Ward:

– I did not speak.

Mr THORBY:

– The honorable member made that statement by interjection.

Mr Ward:

– I admit that.

Mr GARDNER:
ROBERTSON, NEW SOUTH WALES · NAT; UAP from 1931

– It gives them something.

Mr THORBY:

– Butthe honorable member for Cook said that it is a trick. Some honorable members opposite misconstrued even my remarks in moving the second reading of the bill. Some said that this measure is not likely to confer any benefit whatever upon those unfortunate persons who are unable to meet their commitments. The honorable members for Dalley (Mr. Rosevear) and Cook (Mr. Garden) ridiculed the amount of £5,000 mentioned in the bill, and said that it would be impossible to do anything with such a small amount. They know that the bill definitely provides for allocating to a trust fund that amount, and “ such other moneys as are from time to timeappropriated by the Parliament for the purposes of relief to widows and widowed mothers of Australian soldiers.”

Mr Beasley:

– The Government must seek parliamentary approval before a further appropriation can be made.

Mr THORBY:

– Yes, and, judging by the speeches I have heard to-day, Parliament will not refuse to make the necessary funds available. I cannot imagine Parliament refusing to grant to the Minister in charge of war service homes the funds necessary to cany out the provisions of this bill. It is impossible for anyone to say how much money will be required in the trust fund to meet the obligations of widows who are not in a position to make repayments. I appreciate the criticism of the honorable member for Bourke (Mr. Blackburn). He was essentially fair in all that he said. I agree with the honorable member that the bill confers no rights upon widows, in that it does not give them the right to demand relief. As I explained in ray second-reading speech, it is almost impossible to lay down a schedule of payments because the financial position of war widows must necessarily vary. I have on my official file a considerable number of cases from all the States in anticipation of the passage of this bill. In respect of many of them there is a definite recom- mendation that no payment whatever is to be asked. Because the persons concerned have no income, the whole of their instalments, as well as the current amounts owing for municipal rates and taxes will be paid from the trust fund.

Mr GREGORY:

– The Minister will have a large number of applications on that ground.

Mr THORBY:

– I do not care how many are received. Every application will be dealt with on its merits. In every case it will be necessary to take into consideration the income of the widow, whether it is in the form of war or ordinary pension, from the letting of part of the home, from boarders, or from board paid by members of her family. Furthermore, consideration will be given to the number of dependent children, and the ‘condition of their health. In one case that has come under my notice the widow is suffering from a malignant disease, and has an invalid son 45 years of age. No honorable member will say that payments should be required of her. These facts will, I am sure, impress upon honorable members the need for the most sympathetic administration of the act. I have deliberately refrained from thrusting this responsibility upon the commission, because, in what must prove to be a distasteful matter, I have no desire to shelter behind the commissioner or his deputies. This legislation will, I hope, be on the statute books for many years and successive Ministers will be charged with the responsibility of its administration. ‘

I regret that any honorable member opposite should have attempted to misconstrue any of the provisions of the bill, or endeavoured to make political capital out of it, by suggesting that it was brought forward as a result of the pressure of public opinion. I say definitely that it is the fulfilment of a promise made to members of the War Service Homes Association and members of the Returned Soldiers League that legislation to liberalize the War Service Homes Act would be introduced as soon as possible. Shortly after I was appointed as Minister in charge of War Service Homes, I discussed this subject with a deputation which waited upon me, and gave an undertaking then that the representations which they had made would receive the early consideration of the Government. As honorable members are aware, I was absent from Australia for six months on important public business, and therefore was unable to bring down this bill as early as otherwise would have been possible; but I assure honorable members that no widows have suffered from the unavoidable delay. Arrangements have been made for them to receive the benefits which this bill will confer upon them immediately it is passed by Parliament. I resent the unfair criticism by the honorable member for Werriwa (Mr. Lazzarini), the honorable member for Cook (Mr. Garden), and the honorable member for Dalley (Mr. Rosevear), who suggested that the Government is endeavouring to mislead the people, and that it will refrain from honoring its pledges. The honorable member for Cook went so far as to say that the introduction of this bill was merely another trick.

Mr Ward:

– A very npt description of the bill.

Mr THORBY:

– That is what I would expect from the honorable member for East Sydney, who, by his interjections while other honorable members were speaking sought to cast ridicule upon the Government’s’ proposals and my administration of the act. The point I wish to make clear is that whilst no widow will be relieved of her obligations, she will have the right under this bill to make application for relief, and her application will receive sympathetic consideration. If her position warrants it, payments on her behalf will be made from trust fund, and although the money so advanced will be a first charge against the home, she will not be exposed, to any risk of the amount being called up so long as she honours the small obligation which may be imposed upon her. Every case will come before the Minister for review from time to time because the financial position. of a widow might alter. For example, the number of dependent children will, in the course of time, be reduced, and it is hoped that members of her family will be able to contribute to the income of the home. In some cases widows have unemployed sons up to 23 years of age. It is hardly fair to make a claim on their behalf, but even such claims will be taken into consideration because I prefer to keep an unemployed son in the home in the hope that when he does secure employment he will be of some assistance and protection to his mother. The honorable member for Cook in an attempt to ridicule the bill spoke slightingly of the responsibility of the new husband in cases where a widow remarries. The honorable gentleman jokingly suggested that the new husband should not be expected to accept full responsibility for the liabilities which the widow had incurred. I say definitely that a soldier’s widow is in exactly the same position as any other widow who marries a second time.

Mr Garden:

-What I said was that the position of a man who married a soldier’s widow with all her war service homes liabilities around her neck was like that of the fly which accepted the invitation of the spider, and walked into its parlour.

Mr THORBY:

– There is no spider’s web associated with this bill. I resentthat of insinuation when the Government is making a conscientious effort to provide a measure of relief for an unfortunate class of women in the Commonwealth. The suggestion that should a soldier’s widow remarry her husband will walk into a spider’s web and be asked to sign any sort of a contract, is definitely wrong. The widow who will then become another man’s wife is the party to the contract, and will have to face her financial responsibility. It will, however, be an obligation on the husband to provide his wife with a heme. It is not reasonable to suggest that because she was a soldier’s widow her second husband should be entitled to some concession or consideration at the hands of the taxpayers of the Commonwealth. This bill represents a definite, genuine effort on the part of the Government to provide financial relief for those unfortunate women who are unable to meet the commitments into which their husbands entered prior to their death. Considered in conjunction with the circulated amendments, it will make provision for widows of deceased ex-soldiers, widowed mothers of exsoldiers, and wives of purchasers who have become insane. I ask the House to agree to the motion for the second reading of the bill.

Question resolved in the affirmative.

Bill read a second time.

In committee:

Clause 1 agreed to.

Progress reported.

page 1780

ADJOURNMENT

Proposed Legislation: Publication before Introduction.

Motion (by Mr. Menzies) proposed -

That the House do now adjourn.

Mr BEASLEY:
West Sydney

– I ask the Minister who is in charge ofthe House whether the Government has adopted a new procedure in making known the contents of proposed legislation prior to its introduction to the Parliament. Honorable members are aware that from time to time the reply of Ministers to questions seeking information in relation to projected legislation is that it is not customary to make pronouncements of government policy in reply to questions. A very important matter that is agitating the minds of many honorable members is the amendment of the Repatriation Act. From time to time information in relation to it has been sought, and quite a number of interested organizations have endeavoured to learn what is in the mind of the Government. I direct attention to the fact that a report which appeared in the Brisbane Courier Mail of the 5th November last discloses the nature of the contents of a measure dealing with this subject, which we are told is to be placedbefore Parliament The report reads -

PENSION AT GOYEARS..

New Plans for Soldiers.

Plans for pensions for soldiers are outlined in a letter written by the Assistant Minister for Repatriation (Mr. J. A. J. Hunter) to a Gayndah returned soldier.

Mr. Hunter indicated that it was intended to introduce soon amendments to existing legislation to provide -

A pension for every tubercular soldier, whether his ailments resulted from war service or not:

a pension for the prematurely aged or unemployable men who have seen active service, and whose disabilities cannot be ascribed directly to war service;

pensions for all soldiers when they become 60 years of age. “The pensions which were commuted some time ago will be restored “, Mr. Hunter added.

It would be interesting to learn whether honorable members of the Government party have been advised of this proposal. Apparently they have not, for I believe that they are as anxious as we are to ascertain what is intended. If the facts stated in the newspaper paragraph are correct, an unusual practice has been adopted. I should like to be told whether the customary procedure of governments in relation to the legislative programme is to be varied in the future, and whether the present Government considers desirable the publication of information through channels unconnected withthis Parliamentbefore the Parliament itself is advised. I do not regard the new practice as a good one. If it is to be followed, honorable members will probably try to obtain information by writing to Ministers who may be willing to furnish it outside the Parliament. I have not entire faith in newspaper paragraphs; but this paragraph appears to be authentic, as it gives details of the proposed measure. The House, I believe, will be interested to learn whetherthe information was supplied contrary to the wishes of the Cabinet.

Mr CURTIN:
Fremantle

.- I am amazed to observe the silence of the Assistant Minister (Mr. Hunter), who, according to the paragraph read by the honorable member for “West Sydney (Mr. I3easley), has supplied information in relation to proposed legislation before any announcement has been made in this. House.

Mr Menzies:

– The honorable member for “West Sydney (Mr. Bcasley) directed his questions to me, and I shall reply to tothem.

Mr CURTIN:

– Quite so. But the honorable member’s statement was that the Assistant Minister forwarded to a returned soldier a letter outlining the proposed alterations of the Repatriation Act, although the bill has not yet been introduced.

Mr Menzies:

– I propose to deal with that matter.

Mr CURTIN:

– Persons who are not members of this Parliament have conveyed to me this evening what they understand to be the essential provisions of the bill which the Treasurer (Mr. Casey) is to outline, probably to-morrow.

I confess to considerable astonishment at the knowledge of the provisions of the bill which these gentlemen possessed. I can understand that various organizations might have consulted with the Minister regarding the desirability of amending the Repatriation Act, and that opinions might have been expressed; but I assure the House that the representations made to me this evening went far beyond that. I was informed, not of opinions as to what might be done, but of what the Government had decided to do. I join in the protest of the honorable member for West Sydney (Mr. Beasley), whose allegations appear to have substance, seeing that the Assistant Minister, who is chiefly concerned in the matter, has nothing to say in refutation of the charge made.

Mr MENZIES:
AttorneyGeneral · Kooyong · UAP

in reply - The Government does not propose to make any change in the existing practice in relation to the public disclosure of the contents of bills, because it regards that practice as a good one. It is, of course, inevitable that, in the ordinary course a government will disclose toits own supporters the contents of measures which it proposes to introduce. I take it that nothing that has been said to-night by the honorable member for West Sydney challenges the propriety of that course. Unfortunately, it occasionally happens that information is given to other persons; but that is inevitable. In so far as it is suggested that the Ministry has made some public statement as to the contents of a bill to amend the Repatriation Act, all I can say is that it has not done any such thing.

Mr Beasley:

– The statement is attributed to the Assistant Minister for Repatriation.

Mr MENZIES:

– I noticed the honorable member’s reference to the Assistant Minister. I gather from him that there has been some disclosure from a private letter which he had written. That is a matter which he must determine for himself. As to making known the contents of a bill that is to be introduced to the Parliament, I can only say thatthe existing practice will be adhered to.

Question resolved in the affirmative.

House adjourned at 11.34 p.m.

page 1782

ANSWERS TO QUESTIONS

The following answers to questions were circulated : -

Gold Content of American Dollar.

Air. Archie Cameron asked the Treasurer, upon notice -

What change, if any, in the gold content of tlie American dollar has taken place since America went oil the gold standard?

Seamen’s Compensation Act

Mr Blackburn:

n asked the Minister for Commerce, upon notice -

  1. Has his attention been drawn to the fact that the amounts of compensation provided by the Seamen’s Compensation Act 1911 are much more ‘unfavorable to the worker than tlie amounts provided by comparable State laws ?
  2. Will he give consideration to the desirability of an early revision of the Seamen’s Compensation Act 1011 f
Dr Earle Page:
Minister for Commerce · COWPER, NEW SOUTH WALES · CP

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

  1. Yes.
  2. Consideration is at present being given to the desirability of an early amendment of the Seamen’s Compensation Act 1911, to provide for a revision of the amounts of compensation payable thereunder.

New Guinea Public Service.

Air. Price asked the Prime Minister, upon notice -

Did his department call applications for six cadets for the administration of the territory of New Guinea?

Did the department receive 1,730 applications?

If so, did the department decide to select 20 cadets from the 1,730 applicants?

Is he now in a position to supply a full list of the names and addresses of the successful applicants?

Mr Lyons:
UAP

s. - The answers to the honorable member’s questions are as follows: -

  1. Applications were invited from persons desirous of appointment as cadet. The number of appointments to be made was not specified.
  2. Yes.
  3. It is proposed to make sufficient appointments to fill existing vacancies. Some of the cadets were required urgently by the adminis tration, and three suitable candidates were selected and despatched to the territory. There are thirteen vacancies yet to be filled.
  4. The names and addresses of the three appointees referred to in (3) were furnished tn, the honorable member in reply to a question, upon notice, on the 3rd October, 1935 (Hansard No. 12, page 52J). As previously indicated, the Commonwealth Public Service ‘inspectors in the several States were asked to interview 58 candidates, and the final selection for the remaining vacancies will be made as soon as reports are to hand from all of the Public Service inspectors.

Banning of “War, What Foe?”

Air. Holloway asked the AttorneyGeneral, upon notice -

In view of the following facts, viz.: -

That the publication named War, What For, was banned because it is alleged to be issued by an unlawful association; and

That in reply to a question it has been stated that no persons nor bodies in Australia have been declared unlawful associations: will he inform the House why the publication mentioned was banned?

Mr Menzies:
UAP

– The honorable member has based his question on wrong premises. It has not been stated in reply to a question that no persons or bodies in Australia have been declared unlawful associations. The honorable member was distinctly informed on the 6th November that section 30a (1.) of the Crimes Act declares certain associations to be unlawful associations. I have doubts as to the information the honorable member requires, but if he is referring to the registration of War, What For as a newspaper, I refer him to the reply given to the honorable member for Kennedy (Mr. Riordan) on the 23rd October. If the honorable member desires to know why the transmission of the publication through the post is prohibited, I refer him to section 30e of the Crimes Act.

Land Tax

Mr MCEWEN:

Nasked the Prime Minister, upon notice -

In view of his assurance that the Land Tax would be abolished as early as possible, and his subsequent statement that the hardship section of the act would he administered with more sympathy until abolition, is it the intention of the Government that an applicant for relief under relief sections of tlie act should have his case judged on his present ability to pay or his ability to pay at the actual time of the hardship endured?

Mr Lyons:
UAP

– The board constituted under section66 of the Land Tax Assessment Act is not subject to ministerial or governmental control in the exercise of the discretion vested in it by Parliament. I am informed that in its consideration of applications for relief, the board has regard both to the present ability to pay and to the ability to pay at the time when the tax was actually due and payable. In the past, many cases in which the board has granted relief would have been refused if the board had taken into consideration only the ability to pay at the time of assessment and had ignored subsequent losses which had seriously affected the financial position of the taxpayer at the time when the application was actually dealt with by the board. It is undesirable that, and would be productive of anomalies if, the board should he compelled to ignore any relevant factor in its consideration of the question as to whether relief should or should not be granted in any particular case. It is pointed out that the relief granted by the board, as shown in its annual reports, during the year ended the 31st December, 1934, amounted to £155,497, as compared with £57,558, during the year ended the 31st December, 1933, and £48,772 during the year ended the 31st December, 1932.

Federal Capital Territory Advisory Council

Mr Beasley:

y asked the Minister for the Interior, upon notice-

Has he come to a decision regarding an amendment of the Defamation Ordinance of 1928 to cover proceedings of the Federal Capital Territory Advisory Council?

Mr Paterson:
Minister for the Interior · GIPPSLAND, VICTORIA · CP

– A decision on the matter has not yet been arrived at.

Movements of H.M.A.S. Australia

Mr Beasley:

y asked the Minister for Defence, upon notice -

Can he state the reason why the Order in Council attaching H.M.A.S. Australia to the Royal Navy has not been revoked, seeing that the order attaching H.M.S. Sussex to the Royal Australian Navy has been revoked?

Mr Archdale Parkhill:
Minister for Defence · WARRINGAH, NEW SOUTH WALES · UAP

– The Order in Councilhas not been revoked because H.M.A.S. Australia has not yet returned to this station. relief to Wheat-growers : Legislation.

Mr.Curtin asked the Minister for Commerce, upon notice -

  1. What effect will the refusal of one or more States to pass the necessary legislation have on the application of the Commonwealth’s proposal regarding the homeconsumption price for wheat tothe wheat-growers in the States specified?
  2. Will the proposals contemplated by the Commonwealth Government in regard to wheat be practicable if one or more States do not pass the relevant legislation?
  3. If so, is another method of assisting wheat-growers being formulated?
Dr Earle Page:
CP

e. - The answers to the honorable member’s questions are as follows : -

  1. The Commonwealth Government’s policy was stated by the Right Honorable the Prime Minister on Thursday, the 14th instant, to be that-

The Commonwealth Government in agreement with the governments of the States, has agreed to joint action in order to secure a home price for wheat. The Commonwealth Government has introduced its legislation for this purpose.

It is essential, in order to provide some guarantee for the wheat-growers for the coining harvest, that the main wheat-growing States shall at once introduce their legislation.

So far New South Wales and Queensland are the only States that have done so. Victoria, I understand, will introduce its legislation next week. Until the other wheatgrowing States have taken action as agreed upon, theCommonwealth Government is not prepared to announce any policy for the forthcoming harvest.

The Commonwealth Government feels that the governments of the States should shoulder their obligation, and desires to point out that if no provision is made for the wheat-growers for the coming harvest the responsibility for that position will lie upon the States which do not take the action - agreed upon. 2 and 3. See above.

Canberra : Caning in Schools.

Mr Beasley:

asked the Minister for the Interior, upon, notice -

Will the proceedings at, and any report of, the inquiry commencing on the 22nd instant into charges of cruelty to school children be covered in respect of privilege by the Defamation Ordinance of 1928?

Mr Paterson:
CP

n. - The Defamation Ordinance1928 relates only to the publication of reports made by any board or person appointed by the GovernorGeneral or by a Minister to inquire into and report upon any matter relating to or affecting the administration of a department, or branch of the Public Service, or of any authority created by the Commonwealth, and to the publication of the proceedings of any such inquiry. The provisions of the ordinance will not apply to the proceedings at, and any report of, the inquiry which commenced on the 18th November.

Wireless Broadcasting : Statutory Rules

Mr Bernard Corser:

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

  1. Is it a fact that the Government is considering amending the statutory rules which were recently published in the Gazette, limiting the number of commercial broadcasting stations that may be owned by one individual or organ ization ?
  2. Will the Government consider appointing a royal commission or select committee to investigate the whole matter of broadcasting control ?
Mr Archdale Parkhill:
UAP

– The answers to the honorable member’s questions arc as follows : -

  1. Yes.
  2. The matter is one of policy and it is not the practice to answer questions of this character.

Canberra: Leasing of Brassey House

Mr Gander:

r asked the Minister for the Interior, upon notice -

Will he inform the House of the terms of the lease of Brassey House, including the financial consideration being paid by the lessee, or is there any departmental or official reason for keeping this information secret?

Mr Paterson:
CP

– The lease is for a period of five years, with the option of renewal for a further period of five years, at an annual rental of £884.

Unemployment Insurance

Mr Holt:

t asked the Prime Minister, upon notice -

  1. Has he examined the provisions of the Social Security Act recently passed in the United States of America, under which a scheme of unemployment insurance is established?
  2. Will he give consideration to the feasibility and desirability of the introduction of a similar scheme in Australia?
Mr Lyons:
UAP

– The answer to the honorable member’s questions is as follows : - 1 and 2. The act referred to has not yet been examined, but steps will be taken to have this done at the earliest opportunity.

Buffalo Ely: Introduction of Parasitic Wasps

Mr A GREEN:
KALGOORLIE, WESTERN AUSTRALIA · ALP; FLP from 1931; ALP from 1936

en asked the Minister for the Interior, upon notice -

  1. Is he in a position to report as to the efficacy of the introduction of 15,000 parasitic wasps, from Java, in 1931. or 1932, to combat the buffalo-fly pest in the Kimberley districts of Western Australia, and in North Australia and Queensland?
  2. What beneficial results have been observed since their release at Derby and Broome, Western Australia, Burnside Station and Marrakia, North Australia, and Mornington Island, Queensland?
  3. Has the proposal of the Council for Scientific and Industrial Research, to send one of its officers into these areas to conduct a survey of developments that may have taken place, as announced through the press on the 10th July last, yet been carried out?
Mr Paterson:
CP

– The answer to the honorable member’s questions is as follows : - 1 to 3. The Government is not yet in a position to form any opinion as to the efficacy of the parasitic wasps introduced into Australia to combat the buffalo fly. Parasites of this nature take from two to three years to develop sufficiently for any reliable information to be obtained. It is proposed to send an officer into Northern Australia next autumn for the purpose of observing the effect of the parasite upon the buffalo fly.

Italo-Abyssinian Dispute : Sanctions.

Mr.Forde asked the Prime Minister, upon notice -

Has he yet dispatched a reply to the note received from the Italian Government in regard to the imposition of sanctions against Italy by Australia; if so, will he make it available to honorable members?

Mr Lyons:
UAP

s. - A formal acknowledgment, dated the 14th November, has been sent to the Consul for Italy by the Minister for External Affairs in the following terms: -I have the honour to acknowledge the receipt of your letter No. 1,587, of 12th November, concerning the application of sanctions against Italy in connexion with the Italo-Abyssinian dispute, and to inform you that copy of your letter is being laid on the table of the Parliamentary Library for the information of members of Parliament, and issued to the press.”

Pensions. dr. Maloney asked the Treasurer, upon notice -

  1. How many pensioners draw pensions of: (a) from £200 to £300 ; (b) from £300 to £400; (c) from £400 to £500; (d) from £500 to £750; (e) from £750 to £1,000; (f) from £1,000 to £1,500; and (g) over £1,500 per annum?
  2. What will be the approximate amount of pension drawn by the Auditor-General when he retires?
Mr Casey:
UAP

– The answers to the hon orable member’s questions are as follows : - 1. (a) 457; (b) 123; (c) 40; (d) 12; (e) none; (f)1 ; (g)1. In the case of (f) and (g), the pensions are payable to retired Justices of the High Court.

  1. Mr.Cerutty, on retirement, will receive a pension of £416 per annum under the Com- monwealth superannuation scheme, to which hehas been a contributor since its inception.

Northernterritorypoliceforce

Mr Paterson:
CP

n. - On the 8th November, the honorable member for the Northern Territory (Mr. Blain) asked the following questions, upon notice -

  1. What is the numerical strength of the Northern Territory Police Force?.
  2. How many officers have been suspended during the past three years?
  3. How many officers have been (a) punished; (b) dismissed; and (c) reinstated?
  4. How many have been prosecuted for criminal offences or appeared on inquiry before a judge or magistrate?

I am now in a position to furnish the following replies: -

  1. Forty-one.
  2. Five. 3. (a) Seven; (6) three; (c) nil.
  3. Two.

Cite as: Australia, House of Representatives, Debates, 19 November 1935, viewed 22 October 2017, <http://historichansard.net/hofreps/1935/19351119_reps_14_148/>.