House of Representatives
12 September 1939

15^th Parliament · 1^st Session

QUESTION
- SALES TAX
QUESTION
- VESSELS REQUISITIONED BY NAVY
MINERAL LUBRICATING OIL
- Report of Tariff Board
- Mineral Lubricating Oil
QUESTION
- BUTTER PRODUCTION
QUESTION
- INTERNMENT OF ENEMY ALIENS
PAPUA AND NEW GUINEA
- Joint Administration
QUESTION
- DURATION OF SESSION
QUESTION
- TINNED PLATE
QUESTION
- PRICES OF BUTCHERS’ REQUISITES
QUESTION
- CONTROL OF WHEAT PRODUCTION
QUESTION
- MINISTRY OF INFORMATION
QUESTION
- WHEAT PRICES
QUESTION
- AUSTRALIAN WOOL CLIP
QUESTION
- ITALIAN AND JAPANESE NEUTRALITY
QUESTION
- CORNSACKS AND WOOLPACKS
QUESTION
- WAR INFORMATION
QUESTION
- TRACTOR WHEELS AND TIMBER FOR BOX-MAKING
AUSTRALIA AND CANADA
- Appointment of High Commissioners
QUESTION
- AIR SERVICE TO MOUNT GAMBIER
QUESTION
- AIR FORCE RESERVE
QUESTION
- COTTON INDUSTRY
QUESTION
- CONTROL OF PRICES AND PREVENTION OF PROFITEERING
QUESTION
- PRICE OF SUGAR
QUESTION
- CESSNOCK AERODROME
QUESTION
- PRICE OF WHEAT
QUESTION
- SWEATING IN CLOTHING TRADE
QUESTION
- IRON ORE EXPORTS
QUESTION
- CORNSACKS
QUESTION
- OVERSEA SHIPPING FREIGHTS
QUESTION
- PROFIT ON DEFENCE SUPPLIES
QUESTION
- PASSES TO PARLIAMENT HOUSE
QUESTION
- EXPORT OF METALS
QUESTION
- MORATORIUM
QUESTION
- GERMAN FREIGHTER LAHN
QUESTION
- ACCESS TO WHARFS
QUESTION
- CIVIL SERVANTS ON MILITARY SERVICE
QUESTION
- WAR AND SPORT
QUESTION
- SHIPPING SERVICE TO NAURU
QUESTION
- MILITIA UNITS
QUESTION
- NEW GUINEA
QUESTION
- COMMONWEALTH BANK BOARD
BILLS RETURNED FROM THE SENATE
ASSENT TO BILLS
HOSTEL, FORREST, AUSTRALIAN CAPITAL TERRITORY
- Mr. Spender -
- Ordered -
- Second Reading
BUDGET 1939-40
- In Committee of Supply:
ADJOURNMENT
- Wool Scouring and Carbonizing Industry
PAPERS
ANSWERS TO QUESTIONS
- Canberra: High School - Unemployment Relief
- Decentralization of Defence Industries
- Storage of Foodstuffs and Raw Materials
- Naturalization of Aliens
- Northern Territory Police Force

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

page 387

QUESTION

SALES TAX

Mr PRICE:
BOOTHBY, SOUTH AUSTRALIA

– In view of the proposed raising of the sales tax from 5 per cent. to 6 per cent., and the considerable cost involved in the collection of such a tax, will the Treasurer ascertain the amount that could he collected if a 1 per cent. turnover tax were imposed instead of a 6 per cent. sales tax?

Mr MENZIES:
Prime Minister · KOOYONG, VICTORIA · UAP

– I shall endeavour to obtain that information as soon as possible.

page 387

QUESTION

VESSELS REQUISITIONED BY NAVY

Industrial Conditions

Mr BEASLEY:
WEST SYDNEY, NEW SOUTH WALES

– Is the Minister for Defence aware that on a number of vessels which are being taken over by the Navy Department in Sydney, the seamen and other employees are being displaced by naval ratings? Is ho further aware that efforts are being made to induce seamen and others to continue to occupy their positions at a much lower rate of pay than is provided forby the award? If he is not aware of this, will be make inquiries to see if it be possible to keep in employment the majority of the men formerly employed on these vessels, and thus prevent the unemployment position from becoming worse than it is to-day?

Mr SPEAKER:

-I have requested honorable members on more than one occasion, not to ask Ministers whether they are aware of certain facts. By phrasing his question in that way, an honorable member makes, in effect, a statement of fact. A question could quite easily be couched in different terms, and yet convey the meaning intended.

Mr STREET:
Minister for Defence · CORANGAMITE, VICTORIA · UAP

– Certain ships have been taken over on behalf of the British Admiralty, which will provide the crews. I am not familiar with any specific case of other ships having been taken over, but I shall be glad to investigate the suggestions placed before me by the honorable gentleman and inform him personally of the result.

page 387

MINERAL LUBRICATING OIL

Report of Tariff Board

Mr. JOHN LAWSON laid on the table the report and recommendation of the Tariff Board on the following subject : -

Mineral Lubricating Oil

Ordered to be printed.

page 387

QUESTION

BUTTER PRODUCTION

Purchase of Exportable Surplus

Mr FRANCIS:
MORETON, QUEENSLAND

– Is the Prime Minister yet in a position to inform the House of the conditions of the purchase by the British Government of the exportable surplus of the butter produced in Australia?

Mr MENZIES:
UAP

– I regret that I am not yet able to make a statement on that matter; it will be made just so soon as the negotiations are completed.

page 387

QUESTION

INTERNMENT OF ENEMY ALIENS

Mr NOCK:
RIVERINA, NEW SOUTH WALES

– Can the Minister for Defence inform the House as to whether or not the rumour is correct that New

South Wales police interned certain aliens, who were released under instructions from the Federal authorities, and were later re-interned?

Mr STREET:
UAP

– I understand that certain enemy aliens were interned, were temporarily released pending further inquiry, and were subsequently reinterned. I believe that the number of such cases is about three, but I shall have inquiries made to see if there has been any widespread action of that kind.

page 388

PAPUA AND NEW GUINEA

Joint Administration

Mr PERKINS:
Minister without portfolio administering External Territories · EDEN-MONARO, NEW SOUTH WALES · UAP

– I lay on the table the following paper : -

Report of Committee appointed to survey the possibility of establishing a combined administration and to recommend a capital site.

TRACTOR WHEELS AND TIMBER FOR BOX-MAKING

Mr HOLLOWAY:
MELBOURNE, VICTORIA

– Will the Minister for Trade and Customs inform me when it is likely that the report of the Tariff Board on the manufacture of tractor wheels in Australia is likely to ‘become available? Will he also indicate whether attention is being given to the necessity for maintaining supplies of suitable soft woods for case and box making in Austral i« ?

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

– The report of the Tariff Board on tractor wheels has been received by the Government, and it should be possible to table it in the House within h few days. The Government is giving consideration to the other matter mentioned by the honorable member.

page 390

AUSTRALIA AND CANADA

Appointment of High Commissioners

Mr MENZIES:
Prime Minister · Kooyong · UAP

– by leave - I desire to inform the House that the Government has been in communication with His Majesty’s Government in Canada with regard to means of ensuring all possible cooperation between the two Dominions, in view of the difficult period which lies ahead for the whole of the British Empire.

The Government of Canada has suggested, and the Commonwealth Government has cordially agreed, that a material contribution to this end would he made by an exchange of high commissioners between Ottawa and Canberra. The Government of Canada has notified ns that if the Commonwealth Government is agreeable, it proposes to appoint a High Commissioner to Australia. In reply the Canadian Government has been informed that such an appointment would be warmly welcomed by the Commonwealth Government, which, for its pai-t, would be ready to make a reciprocal appointment to Ottawa as soon as the necessary arrangements can be completed.

An announcement of the Canadian Government’s intention to appoint a* High Commissioner in Australia is being made in the House of Commons at Ottawa today.

It is the intention of the Commonwealth Government to proceed with the appointment of an Australian High Commissioner in Canada as soon as possible.

CONTROL OF PRICES AND PREVENTION OF PROFITEERING

Mr NAIRN:

– Is the Minister for

Trade and Customs able to make a statement about the establishment of a board to regulate commodity prices? I am particularly concerned to know what will be the representation of Western Australia on such a board and whether due regard will be had to the representations of commercial interests. Will the advisory boards be set up in the outer States?

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

– The Prime Minister has already made a full pronouncement on the subject. Briefly the proposal is that there shall be in Canberra a controlling authority consisting of a Commonwealth controller of prices and two assessors. In each State there will be deputy controllers who will have the services of an advisory body acting in an honorary capacity.

Mr JENNINGS:

– In order to make tlie position clear, will the Minister state if the price fixation will be on the basis of both wholesale and retail prices existing on the 31st August?

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

– Yes.

Mr WARD:
EAST SYDNEY, NEW SOUTH WALES

– Has the attention of the Minister been drawn to the considerable increases during the last few days of the prices of commodities not covered by the price-fixing proclamation? In view of what has happened, will he see that the list is extended to cover all commodities and make the proclamation retrospective to the 31st August?

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

-This morning an order was gazetted fixing the prices of a wide range of foodstuffs and other necessary commodities at the level ruling on the 31st August last. From time to time, as circumstances require it, additions will be made to that list.

page 392

QUESTION

PRICE OF SUGAR

Mr MAHONEY:
DENISON, TASMANIA

– I understand that the price of sugar has been fixed throughout Australia at 4d. per lb. wholesale. I understand, that the Commonwealth Government has the power to fix the retail price, and I desire to know whether it will exercise that power?

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

– The order gazetted in respect of sugar applies to not. only the wholesale price, but also the retail.

Mr MAHONEY:

– The price of sugar varies from 4d. to 4J per lb. Will the Minister state at which of these figures the price is to be pegged?

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

– The price is to be that which was in operation on the 31st August last, whatever that price may have been.

Mr Mahoney:

– That is, the price in force at that time in each State?

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

– Yes.

page 392

QUESTION

CESSNOCK AERODROME

Mr JAMES:

– Has the Minister for Civil Aviation seen the report of the engineer of the Cessnock Municipal Council that the aerodrome at Cessnock could be so extended as to provide of sufficient runway to meet the needs of the largest aeroplanes? In view of the fact that Newcastle has no proper defence aerodrome will the Minister give consideration to the clearing of 300 or 400 yards of land in order to extend the aerodrome at Cessnock as suggested? The work would have value not only from the point of view of defence, but also in absorbing the unemployed in the Cessnock district.

Mr FAIRBAIRN:
UAP

– I have not seen the report, but on my return to the department I shall ask for it and study it carefully. The Civil Aviation aerodrome inspector who made an investigation at the Cessnock aerodrome reported that, even if the aerodrome were extended as suggested, it would still not be adequate for aircraft of all types. My own observations led me to the same conclusion. It appears that the contours of the ground are such that the suggested extension would not provide a greater runway. I assure the honorable member that 1”. shall give the matter further consideration. I know how anxious he is.

Mr James:

– The engineer claims that all that would be necessary would be a little filling.

Mr FAIRBAIRN:

– I shall look at the report. The Department of Civil Aviation is advised by the Air Board about the strategical value of aerodromes.

page 392

QUESTION

PRICE OF WHEAT

Mr GREGORY:

– I have received a telegram stating that the price of wheat at port in Western Australia this morning was ls. 8d. per bushel compared with 2s. 8d. in Sydney. What is the reason for the discrepancy?

Sir FREDERICK STEWART:
UAP

– I shall bring the matter under the notice of the Minister for Commerce with a view to obtaining an appropriate reply.

page 392

QUESTION

SWEATING IN CLOTHING TRADE

Mr HOLLOWAY:

– Has the Prime Minister yet had time to confer with State Ministers or Commonwealth Arbitration Court officials with a view to instituting some method of dealing with sweating in the clothing industry?

Mr MENZIES:
UAP

– I am afraid I personally have not, but I shall ascertain from the relevant department What steps have been taken.

page 393

QUESTION

IRON ORE EXPORTS

Mr CLARK:
DARLING, NEW SOUTH WALES

– Has the attention of the Minister for Defence been drawn to the fact that the Broken Hill Proprietary Company Limited yesterday forwarded fourteen trucks of iron ore to be delivered to a Dutch ship bound for a German port? Is that correct? Does the Minister know the intended destination of that iron ore? “Will he take steps to see that no iron ore is shipped from Australia to other than British ports?

Mr STREET:
UAP

– I know nothing of the case mentioned, but I shall have immediate inquiries made.

page 393

QUESTION

CORNSACKS

Mr NOCK:

– In view of the fact that it is impossible to obtain supplies of cornsacks and wool packs from Calcutta at the prices fixed, what provision does the Government intend to make to ensure sufficient supplies for the ensuing harvest and shearing?

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

– The matter raised is at present receiving the closest attention of the Government. AH necessary steps will be taken to ensure an adequate supply of woolpacks and cornsacks at a price which is fair and reasonable having regard to the cost of landing the goods in Australia.

Mr McHUGH:
WAKEFIELD, SOUTH AUSTRALIA

page 395

The following bills were returned from the .Senate without amendment: -

Trading with the Enemy Bill 1939. Judiciary Bill 1030. National Security Bill 1930.

page 396

ASSENT TO BILLS

Assent to the following bills reported : -

Trading with the Enemy Bill 1039. National .Security Bill’ 1939.

page 396

HOSTEL, FORREST, AUSTRALIAN CAPITAL TERRITORY

REFERENCE to Public Works Committee.

Debate resumed from the 7th Sept., 1939 (vide page 138), on motion by Mr. Perkins -

That, in accordance with the provisions of the Commonwealth Public Works Committee Act. 1913-1930, the following proposed work bc referred to the Parliamentary Standing Committee on Public Works for investigation and report, viz.: - The erection of a hostel at Forrest, Australian Capital Territory.

Question resolved in the affirmative.

SALES TAX BILLS (Nos. 1 to 9) 1939.

In Committee of Ways and Means: Consideration resumed from the 8th

September (vide page 335), on motion by

Mr. Spender -

I.. That iii lieu of the rate of tax imposed

. (vide page 333).

Questions resolved in the affirmative.

Resolutions reported.

Standing Orders suspended ; resolutions adopted.

Ordered -

That Mr. Spender and Mr. Fairbairn do prepare and bring in bills to carry out the foregoing resolutions.

Motion (by Mr. Spender) - hy leave - agreed to -

That so much of the Standing Orders be suspended as would prevent the questions in regard to the first and second readings, committee’s report stage, and the third readings, being put in one motion covering several or all of the Sales Tax Bills Nos. 1 to 9, and the consideration of several or all of such bills together in a committee of the whole.

Bills (Nos. 1 to 9) brought up by Mr. Spender, and read a first time.

Second Reading

Mr SPENDER:
Assistant Treasurer · Warringah · UAP

– I move -

That ae bills be now read a second time.

Mr Nairn:

– I think that we might at least go through the formality of examining these bills before they are passed.

Mr Curtin:

– I came here prepared to deal with quite another matter, and I should like the debate on these bills to be adjourned.

Debate (on motion by Mr. Curtin) adjourned.

page 396

BUDGET 1939-40

In Committee of Supply:

Consideration resumed from the 8th September (vide page 333), on motion by Mr. Menzies -

That the first item in the Estimates under Division I - The Senate - (namely “ Salaries and allowances, £8,040 “, be agreed to.

Mr CURTIN:
Leader of the Opposition · Fremantle

– I may say without reference to anything that has happened earlier to-day, that it is very important that the general principles of the budget should be considered by the committee before any of the legislation arising out of the budget is passed by the House. We know that on many occasions in the past, owing to the urgency of having certain taxes approved in order to avoid loss of revenue, Parliament has agreed to interrupt the budget debate so that such matters might be considered; and no doubt, if it should be shown in the course of the debate on which we have now entered that the general discussion of the budget, is likely to take so long as to endanger revenue, the Government would be entitled to ask the committee to consent to a deferment of the concluding speeches of the debate. By that time, however, sufficient will have been said to enable the Government to elicit what is the point of view of the committee as a whole towards the general principles of the budget. It so happens that the revenue will not suffer in respect of the sales tax as the result of our not passing the bills to amend the principal act immediately, because the other day we took the requisite steps to protect the revenue in respect of the proposed increase of sales tax.

I think that I may say that this budget is historic, not only because it was delivered within a week of a declaration of a state of war with Germany, but also because it is the first Commonwealth budget to contemplate an expenditure exceeding £100,000,000. We have to bear in mind that the budget which provides for this very great expenditure was not drawn in fact to provide for a state of war, but really was drawn to make provision for the safeguarding of the country in the face of what was recognized to be a threatening danger. We are not now dealing with a budget contemplating all the expenditure immediately involved in resisting an enemy. That budget will be a second instalment of the Government’s programme with respect to the financial requirements which the Government must have in order to discharge what appears at the moment to be an obligation, the consequence of which we cannot now foresee.

It would be absurd to attempt to review the whole financial position of the Commonwealth as though we were to-day engaged in our normal duty of considering what is the position of Australia, and to what extent the Commonwealth Government and the State Governments are handling our economic and financial affairs in a satisfactory way. Suffice it to say that the estimate for the present year of £102,500,000 of revenue, represents, when all is said and done, an increase of approximately £4,000,000 over the revenue collected in the last financial year, and is approximately a little less than £12,000,000 more than was collected in the year before last. The rising revenue of the Commonwealth in the last four years has been, I venture to say, hardly noticed by the people of Australia, yet, indeed, it has been colossal. The committee should bear in mind that for the financial year which ended on the 30th June, 1936 - just three years ago - the revenue of the Commonwealth was £82,600,000, and that last year it was £98,500,000. That is to say, we collected £16,000,000 more last year than we did three years previously.

There is a belief, which is a mistaken one, that the growing requirements of the Commonwealth in respect of revenue, and the increased taxes that have been imposed on the people have been due to the greater defence expenditure of the Commonwealth. That simply is not true. The facts are that out of a revenue of £82,600,000 during the financial year ended on the 30th June, 1936, a little more than £6,000,000 was expended from revenue on defence, and, in the following year, although we obtained a little less than £4,000,000 more in revenue, we spent only £750,000 more from revenue on defence. In the year 1937-38, when we had a total revenue of more than £90,700,000, we spent on defence from revenue only £S,800,000, and, the rest came from the builtup trust funds which were provided out of the surpluses of previous years, or from loan accounts. During the financial year now under review, which was marked by the crisis of September, 1938, the disquietude arising from the Munich Pact, and the realization of danger indicated in the speeches of the previous Prime Minister right throughout that financial year down to the end of March, and the speeches of his successor since then, although revenue had increased from £90,000,000 during the previous year to £98,500,000 the provision for defence from revenue rose, not by £8,000,000 as revenue rose, but by less than £2,000.000. In precise’ figures, the expenditure on defence from revenue in 1937-38 was £8,800,000 and last year it was £10,100,000. That is an extraordinary state of affairs. Let me put it this way : Three years ago, the revenue was £82,000,000, whereas last year it was £102,000,000- an increase of £20,000,000.

Three years ago we spent on defence a little ‘more than £6,500,000 of our revenue, and last year, we spent on defence a little more than £10,000,000 of our enormouslyincreased revenue. It is obvious that the slogan, coined by the Prime Minister in recent weeks, “ Business as usual “, has meant for the Commonwealth an increased expending activity throughout all departments. I make no protest about that - this Parliament has approved of the budgets submitted in past years - but I hope at this juncture that there will be complete realization on the part of the Australian people of the fact that the great increases of taxes and of revenue which the Commonwealth Government has had in past years have not been based on any enlarged utilization of expenditure for purposes of defence. It can be said that an appreciable proportion of this increased revenue has come from the proceeds of taxation - that, I venture to say, is clear - but I do not think that the country yet realizes what are the precise circumstances in which the Commonwealth Government has had surpluses in recent years. Let me state the matter in this way: In 1931-32, the financial year in the course of which the Labour government went out of office and its successor came into office - and it can be said to have remained in office ever since - direct taxation yielded £17,000,000 odd, whilst in the present financial year it is anticipated that £17,100,000 will be collected. That is to say, the direct taxes imposed by this Government in the present financial year, with the prospect of grave obligation to safeguard Australia against possible aggression, will only yield the same amount as was collected in 1931-32, at the depth of the depression. It is perfectly true that in the year 1931-32, there was a substantial deficit, and that last year there was no deficit; but in 1931-32 the yield from indirect taxation was £36,800,000, whilst this year it will be approximately £62,800,000. I can contrast clear cut the kind of taxation which this Government has practised. J can show that during the year in which it inherited office, and in the present year, it will collect from the Australian people the same amount by way of direct taxation, notwithstanding that this year, as will be acknowledged, the Australian people are far better equipped to pay direct taxes than they were in 1931-32. Although this year the Government proposes to collect almost precisely the same amount by way of direct taxation as was collected in 1931-32, it will collect from indirect taxation the staggering amount of £26,000,000 more than was the collection from that source in 1931-32. The extraordinary feature of the total yield from taxation this year being £26,000,000 more than was the total yield in 1931-32, is that that increase will be derived exclusively from the proceeds of the increased yield from indirect taxation. Let the Australian people bear that clearly in mind, because these indirect taxes are not related to the capacity of the people to pay them.

Mr Thompson:

– What about the States?

Mr CURTIN:

– I shall come to that point. The general principle of direct taxation which this Commonwealth practises is that there should be taxation according to the capacity of the individual to pay it. We exempt from taxation all of those whose incomes are under £250 per annum, and also allow a series of concessional deductions for various causes, with the result that a married man with a wife and two children needs to have an income in excess of £400 per annum before he is called upon to pay direct taxes to the Commonwealth. I know that he pays to the States - I shall come to that later - but this is the central truth: that the resources of this Commonwealth Government to discharge the obligations of government, have been built up as the result not of increased taxes on the rich but of taxes which, in their incidence, are unrelated to the capacity of the people to pay them, and which, by and large, have to be paid at the same rate by the great mass of the people, even though they have low incomes, as is the case with those other sections of the community that have high incomes.

Mr Gregory:

– The honorable gentleman’s party was the worst offender in the imposition of indirect taxes.

Mr CURTIN:

– No; the honorable gentleman misconstrues our policy. We are not in favour of revenue tariffs; we believe in a tariff to protect Australian industries, and our method is one by which imports would not be encouraged which would be to the competitive detriment of Australian manufactures. I take the same ground in regard to electrical equipment, and boots and shoes, as is taken by the honorable gentleman in regard to potatoes and onions; that is to say, I think it is a reasonable proposition that the Australian market should be safeguarded to the Australian producer of potatoes, of boots, of sugar, of meat, and of wheat.

Mr McEwen:

– Whom was the Labour party protecting when it put the tax on tea ?

Mr.CURTIN.- For a period the honorable gentleman was a member of the Government which did this sort of tiling, and I believe that he is now in a state of most eager readiness to repeat the performance, if the obstacles which confront him can be surmounted by whoever has been deputed to try to gallop over them. I have referred to the enormous increase of indirect taxation. In total, the receipts from taxation are the highest ever collected in the history of this Commonwealth. The figure is indeed staggering. The significance of it is that the receipts from direct taxes are at present the same as they were in 1931-32, notwithstanding the acknowledged increased ability of the Australian people to pay more in that form, but the receipts from indirect taxes have jumped by £26,000,000, and that represents the aggregate increased yield from all forms of taxation. During the six years to the end of 1937-38, the Government systematically reduced the income and property taxes. These were taxes which the workers were exempt from paying to the Commonwealth. Therefore, whilst the Government was practising forms of taxation which drew more and more from the masses of the people as consumers, it was relieving the burden on the well-to-do and those who ordinarily would be called upon to pay Commonwealth income tax in its various forms. An authoritative return furnished to me shows that the approximate remissions of land tax total £8,800,000, of property tax £16,000,000, of company tax £5,600,000, of life assurance company tax £4,500,000, and of shipping companies’ tax £150,000, making a total of £35,000,000. Consequently, had the rates of direct taxes operating in 1931-32 been maintained, the increase gathered to the Commonwealth from direct sources would have been added to by approximately £35,000,000 from those taxpayers alone. I say to the honorable member for New England (Mr. Thompson) that while the Commonwealth has been reducing taxes on the rich, the State governments have been imposing direct taxes on the poor.

Mr Thompson:

– On the rich, too.

Mr CURTIN:

– On the rich as well. Whilst, in the year ended the 30th June, 1938, the total yield from State income tax - the ordinary income tax which the States have operated before and since the depression, and which contains a number of exemptions and concessions - was £16,000,000, the other forms of direct taxes which the State governments have imposed, taxes at the source without any concessions, aggregated £13,500,000. That £13,500,000 has been collected by the States as the result of their having brought into the direct taxation field thousands of families which, according to the fundamental principle of taxation, have always before been regarded as immune from the obligation to pay direct taxes. Unemployment relief taxes are imposed at flat rates, and reach right down to the very lowest ranges of income. Single men and women with very low incomes, married men on the basic wage in some States, have had to pay direct taxes at the source to the State governments. While the State governments were enforcing on these people taxation of that kind, this Commonwealth Government was responsible for their beingcharged an increased price for bread, cigarettes and beer, and it was imposing a sales tax on certain of their requirements. By and large, the imposition of new direct taxes by the States because of their budgetary difficulties arising from the depression, and the continuance by this Government of this exorbitant rate of indirect taxation whilst making enormous concessions in respect of direct taxes to the wealthy section of the community, have created the most extraordinary anomaly that last year wealthy companies throughout Australia, including manufacturers - I inform the honorable member for Swan (Mr. Gregory) - made larger incomes than had ever been made in the history of Australia. They were living, as it were, in a veritable era of prosperity. They were the persons whom the previous Treasurer (Mr. Casey) had in mind when he said that Australia had entered upon an era of prosperity. It was truly prosperity for the rich, but very little improvement, indeed, in respect of the welfare of the great masses of the people, and no improvement whatever for those who were on sustenance, part time, or a rationed allowance. In this short retrospect of what has occurred in the last six years, I direct attention to the unfair working of the recent financial policy of Australia, not because I anticipate any opportunity to correct what has taken place in the past - because I know that the Government must have more revenue now than it had last year or in the preceding year, and I realize that increased taxes of various kinds are inescapable - but in order to make clear that, in whatever lies ahead of us, we certainly ought not to borrow from the rich to enable us to finance the war, whilst continuing to tax the poor. That, at least, ought to be clear.

I shall now refer to the land tax, and I find the situation very interesting. Land tax was reduced substantially by 331/3 per cent. in 1932-33, and by 162/3 per cent. in the following year, making a total reduction of 50 per cent. Last year the rate was increased by 11 per cent., and the increase brought in an additional £140,000. For the whole period that the remissions were in force it is estimated that the remissions alone totalled £9,000,000. The report of the Royal Commission on Taxation disclosed that 67 per cent. of the land tax that had been collected up to the time the review was made came from city owners; and the owners of city properties, honorable members will hardly need to be reminded, are wealthy people, they are not poor widows, for people of that class do not own properties in Pitt-street, Sydney, and Collins-street, Melbourne. Only wealthy corporations can buy real estate in those localities. Consequently the remissions of land tax conferred a very much larger immediate benefit upon city property owners than upon farmers, pastoralists, and the like, none of whom has to pay land tax at all unless he owns land the unimproved value of which exceeds £5,000. I have before me a return showing the result of the remissions from land tax, and it is extremely interesting. It should be particularly interesting to honorable members of the Country party who allege that they favour the remission of the land tax in order to help the poor farmers. Here is a list of some of the remissions -

I may say, in passing, that David Jones Limited has its “ farm “ in Castlereaghstreet, Sydney. These Sydney examples could be multiplied almost without end, and similar returns could be obtained from every other capital city in Australia.

We are now at war and one of the chief trophies of war is land, and especially land which hasbeen made valuable as the result of the increase of population. The unearned increment from the land which flows to the fortunate owners of property is very great, and I hardly think that any honorable member could deny that those who enjoy this unearned increment should be called upon to make a much greater contribution towards national security than they might be called upon to make in normal times, and certainly a much greater contribution than should be expected from the mass of the poor people of the community who are now being called upon to pay an extra 1 per cent. in sales tax on a very great

variety of the goods which they use. The fortunate owners of land have a big stake in the country and they should be prepared, without complaint, to increase what I may call their insurance premiums. They have much more to gain from national security than many other people.

I shall not offer any objection to the proposed increases of taxation indicated in the budget. For that reason I did not offer any objection to the Sales Tax Bills reaching a certain stage a few moments ago. It is proposed to increase the rate of income tax by 10 per cent. That is a fair thing. It means, in effect, that a person who paid £10 in income tax on a certain income last year will pay £11 on the same income this year, and a person who paid £1,000 on a certain income last year will pay £1,100 on a similar income this year. It is also proposed to increase the rate of company tax from ls. 1.8d. to ls. 7.8d. in the £1. In other words, an extra 6d. in the £1 is being put on this tax. That also appears to me to be reasonable. The Treasurer estimates to receive an additional £2,360,000 from these sources. Added indirect taxes will, it is estimated, bring in an extra £3,750,000. This will be provided by the increase of sales tax, and the other fiscal measures introduced last Friday. I agree that it is sounder practice to increase the rate of sales tax than to bring back into the field of this taxation items which had previously been removed from it by the Parliament. I approve of that practice. The exemptions have been made in the light of experience. Some of them are desirable because of the importance of the goods to industrial operations, and others are desirable because the goods are commonly required for consumption by ordinary citizens. With regard to the increases of excise duties, all that I can say is that I am forced to acknowledge that money must be obtained from some source. 1 know that teetotallers will be exempt from the payment of the extra imposts on beer and spirits, but, in the main, any alternative tax would probably fall more heavily upon wives and children than will this one. It is far preferable, as I see it, to tax beer, if it is necessary to tax anything, than to tax tea, and to tax cigarettes than to tax soap or other household com modities. By and large, I have no fault to find with the method which the Government has adopted to obtain an increased revenue. In the past the Government has been too quick to reduce direct taxes on the rich, and too eager to impose these almost hidden taxes on the poor.

The Treasurer referred to the loan expenditure of the Commonwealth. In the present year loan expenditure by the Commonwealth will jump from £4,000,000 to £23,000,000. That is a substantial advance. . As I understand the budget, and as I understood the Treasurer’s speech in introducing it, we have to consider these proposals as preliminary. This is a budget for preparation and not a budget for conflict. The increase of loan expenditure by £19,000,000 is very great. I understand that at the Loan Council meeting a general statement was made to the effect that £41,000,000 was to be raised this year for allocation among the Commonwealth and the States. The Commonwealth said to the States in effect: “We shall have to spend much more money on defence this year, and, therefore, you will have to spend a good deal less on works. But the money we spend on defence will contribute to the provision of employment in the States. Defence work will be as good an employment-maker as would be the works programme that you would normally carry out “. I question those premises. I direct attention to the fact that, despite the increase of expenditure on defence, the amount of employment available in recent months has steadily declined. Until a week or two ago the unemployment figures were assuming proportions well above the pre-depression norm. Defence expenditure does not provide nearly the amount of employment which the same amount of money would provide if .expended by the States on ordinary public works. Moreover it must be recognized that the Commonwealth has been obliged to concentrate its defence expenditure in one or two places. Certain States have had a far greater advantage in this regard than certain other States. Defence expenditure is not distributed on anything like a per capita basis. I do not argue, that it should be expended on a per capita basis, but I mention the point in order to emphasize my view that it is not to be taken that defence expenditure is, in fact, equivalent to the normal works expenditure by the States. That dictum must definitely be negatived.

The Commonwealth Government must look at these matters realistically. The State governments are at present responsible for a very great variety of employment in the maintenance of industries of many kinds, and in the carrying on of public utilities. The whole burden of rinding work for the unemployed has been thrust upon the States . by the Commonwealth Government. Idle men in Australia are, when all is said and done, not desirable at any time, and certainly not in the circumstances in which we now find ourselves.’ Every idle man who is capable of being usefully employed should be immediately placed in some occupation. There is something that he can do for the national well-being. The Commonwealth Government, apart from its proposed defence expenditure, contemplates in the budget the slogan which the Prime Minister has announced as “Business as usual”; but the Government must also envisage the right of the States to adopt a similar slogan. It should be recognized that the work which the States normally provide is definitely of value in contributing towards the preparedness of the Commonwealth. It should be regarded as a collateral activity. If the maintenance of our railways, for example, is unsatisfactory our whole transport system may become seriously impaired. If water conservation schemes are not proceeded with at various country places we may find ourselves at some future time in a fatal difficulty because certain units of our defence forces cannot be provided with water. A great variety of the activities of the States, whilst not having their direct bearing on defence, certainly have a very important indirect bearing on it. Who can foresee by what processes, or in what ways, this conflict will be waged? In these circumstances it is not fair for the Commonwealth Government to say to the States “ As we shall have to obtain more money from loan sources to provide for defence, the States will have to do with less “.

We must realize that the country is actually at war. That being so, I say quite frankly to honorable members opposite who may be opposed to the general principles of the Labour party in respect of banking and monetary policy, that it will be impossible for the Government to rely on orthodox banking and financial practice to safeguard the interests of Australia in the years immediately ahead of us. In peace times it is strongly held that the industries of a country cannot be expanded and its developmental projects cannot be pressed beyond the limits of the country’s central banking resources. I shall not argue that point at the moment. I merely remind honorable members that all of the banking and financial theories which had been adhered to throughout the world prior to the 4th August, 1914, as the only principles upon which banking and finance could be satisfactorily conducted, were thrown overboard immediately after the war commenced. The world finished that war with a burden of debt which, if anybody had contemplated it for any other purpose, would have’ resulted in his being branded a sheer lunatic. Much water has flowed under the bridges since then. Neither the Australian public nor any other public will be satisfied with the statement, “ You cannot defend your country merely because you haven’t the money”. That idea will not be accepted. Nations are defended with man-power, physical equipment, guns, munitions, material things, and their capacity cannot be limited by the amount of currency that they have or by any particular measure of credit which any expert or band of experts likes to fix. The principles enunciated by tha Treasurer on .Friday concerned the upholding of orthodox financial policy. How is it that a country which was bankrupt a few years ago, disarmed a few years ago, is now able to have the most formidable military machine that ever threatened the universe? Where did Germany get the money for its re-armament programme? Where did Japan get the money for its tremendous attack upon the competitive standards of the rest of the world in its export trade? Where did Japan get the money for the rationalization of ite secondary industries? Whence came the money for that tremendous recapitalization of industries of Japan and Germany in the last decade? The upholders of capitalistic finance and orthodox principles must face realities. For two years I and everybody else have been told that Germany was on the verge of bankruptcy, that its export trade and internal economy were collapsing and that it would have to go to war because of that. Whatever be the cause, the truth remains that the war on which the world has entered, like the war that was waged 25 years ago, will not be ended because any of the parties is short of money. It might be ended because of a shortage of shells, a shortage of men, or a shortage of foodstuffs; it will be a physical deficiency rather than a mere absence of financial documents “which will be the determination of whether or not a country has the capacity to withstand its foes in the conflict upon which we have entered.

– I know that they are not. A great part will have vanished into thin air long before the loans are due for redemption.

It is quite conceivable that, before we have got very far in the present year, we shall be asked to authorize the Government to expend £50,000,000 for the purpose of defending the country. That money may come from taxation or from loan, but there must be a limit to the taxes which the Australian people can be asked to pay, when we take into account the fact that the taxation in Australia is now approximately £120,000,000- £80,000,000 Commonwealth and £40,000,000 State. That is a figure which would have been incredible if those who sat in this Parliament a few years ago had been asked to contemplate it. The Treasurer’s general statement about the use of credit for the purpose of meeting national requirements is a statement that I do not accept. There will have to be some use of bank resources and some use of national credit. I point out, as the right honorable gentleman did, that the Commonwealth Bank Board has recently applied a policy which it would not have applied a few years ago.

Mr Beasley:

– “ More flexible “.

Mr CURTIN:

– Yes, the Prime Minister said that the Commonwealth Bank’s policy was more flexible. It would be easy for me to say that the Commonwealth Bank Board’s attitude has some regard to the kind of government in power, but I think that that would be improper.

The CHAIRMAN:

– The honorable member’s time has expired.

Mr FRANCIS:
Moreton

.- This is an historic budget. It ‘was intended primarily to prepare the country for defence, but, before it was delivered, it became necessary to accept it as merely a provisional budget, because we are now at war. In the near future it will be necessary to prepare a war budget. It is also an historic budget, because it is the first time in our history that we have had to raise £100,000,000 to meet our requirements. Because of the emergency we are passing through, increased expenditure is to be expected. We anticipated increased taxation and increased borrowing, and we have not been disappointed. We cannot tell how long the war will last, and it is inevitable that still further taxation and still more borrowing will be necessary in the future. The people of Australia appreciate the position, and are willing to bear their share of the sacrifices necessary for the successful prosecution of the war. The budget wisely spreads the additional taxation equitably among all sections of the community. It provides for an increase of both direct and indirect taxation. Income and property taxes are to bc increased by 10 per cent. Company taxation is to be increased by 6d., and there is to be a uniform increase of the sales tax by 1 per cent, on all items paying duty at the present time. There are, in addition, slight increases of duty on beer, spirits and petrol. The budget, in fact, provides for a steady increase of all forms of existing taxation. The Leader of the Opposition (Mr. Curtin) said that he had no objection to the increase, or to the methods adopted to bring it about, and it is not often that we have the endorsement and approval of a Leader of the Opposition for a budget.

The budget shows that there has been steady national development. Only in respect of the prices of certain primary products ha s there been ‘a decline, and, a s the Prime Minister (Mr. Menzies) has indicated that the British Government proposes to buy the major portion of our exportable primary products at a reasonable price, this should go a long way to make up the deficit in regard to primary products.

My main purpose in rising was to make it quite clear that I am not at all happy about the way in which we are preparing this country for the defence of the Empire and Australia. I appreciate very much the fine lead which has been given by the Prime Minister. He has created great confidence in the community, the people having reacted most favorably to the appeals he has made. The nation is very steady, very solid, and very anxious to play its part as an integral portion of the Empire. Nevertheless, I am not at all satisfied with the progress made by the Defence Department and its Minister in building up our defence forces, and raising them to war efficiency. That is my considered opinion, and it is shared by an extraordinarily large number of people in this country. The young men of Australia readily responded to the appeal to double our Militia Forces. In record time the strength of the Militia was increased from 30,000 ito 70,000. Even then, the young men continued to offer their services until the Minister for Defence expressed himself as being so well satisfied that he was able to decline all further enlistments. Most of these new men, as well as those who had previously enlisted, have been in camp for sixteen days’ training. They acquitted themselves remarkably well, and won the unstinted praise of every one for their enthusiasm and application to the work. I saw many of them myself, including infantry, light-horsemen, engineers and field ambulance units. I was immensely proud of them, and their spirit was reminiscent of the Australian Imperial Force. Nine months or more have elapsed, yet many thousands of troops in Queensland have not received their uniforms. This is not fair to the recruits, and does not invite respect for the Defence Department. Over and over again I have received complaints in regard to this delay, and by air mail to-day I received this further letter of complaint -

My son joined the 7th Field Engineers, Ipswich, last January, and up to date is unable to obtain his uniform equipment.

I got in touch with Ordnance Officer, Brisbane, to-day, who stated matter was entirely in hands of Quartermaster at Ipswich. The Ordnance Officer did not seem to take much interest in my complaint.

I could quote many other letters complaining in a similar strain. This problem should be tackled with greater enthusiasm and thoroughness. Though we are now at war, insufficient activity is being displayed by the department towards the rapid training of our young officers and non-commissioned officers. An the result of the rapid increase of the strength of the Militia, more than onehalf of the junior officers and noncommissioned officers in many units are holding only provisional ranis. These young men were promoted because they had extraordinary qualifications and were keen to push ahead in the military organization. They are, naturally, anxious to learn their duties in order to become 100 per cent, efficient. Why have they not been encouraged by being called up into special schools to give them a chance to gain the military knowledge they are so anxious to acquire?

Mr Street:

– They are being called up.

Mr FRANCIS:

– I have not heard anything about it. Every encouragement should be given to them to widen their knowledge. I am not quite satisfied by the Minister’s interjection because E believe that they should have been called up long ago. Why this long delay ? What could they know of attack and defence, advance guard and rear guard actions, map reading, field sketching, gas warfare and trench construction? To become efficient in this work young officers and noncommissioned officers should be given the opportunity to receive instruction. In this war, as in the last, everything will depend upon the leadership of the young platoon officer. The officers and non-commissioned officers of the Militia Forces should be in camp now learning to equip themselves for the task ahead of them. Only when they have been properly trained can they in turn train recruits of the rank and file placed under their charge. When they are trained and ready to command their respective units, battalions and regiments should be called up to carry put mon! advanced training in attack and defence, and in company, battalion and brigade manoeuvres. It took over six months to train and harden the members of thu Australian Imperial Force for active service. In view of that, why is there to-day so much delay in training our Militia Forces ? In a leading article published in the Melbourne Herald of the 11th September, headed “Australia is an empty camp”, the writer says -

A week of war has passed, and the Australian public is frankly uneasy at the delay in planning for Australia’s participation. What has been done in Australia so far is no more than is being done by neutral countries who are policing their own territories. The Australian people do not contemplate their share of war as that of passively carrying on their normal life behind the protection of Britain, benefiting, perhaps, by the sale of our foodstuffs and materials. It is Australia’s war that is being fought. … It may be admitted that the Government cannot yet determine where, and how, Australia’s manpower will most be needed. But it can be said with great definiteness that hy the extent to which Australia’s manhood is trained and ready to strike, wherever and whenever it is needed, the democracies will be so much the stronger to win the war. . . . The brave declaration that Australia is with Britain in this Avar, lias, so far, been followed up with little but official explanations and excuses for putting limitations upon Australia’s participation. . . . Are we to wait until we are called upon to fight before wc start to train our nien to fight?

A week of war lias passed, a week that has. only emphasized the magnitude of the task before the democracies, and yet there is no call or movement of urgency from our national leaders. Surely nothing is more urgent than that we should now be enlisting and training our available manhood for the war in which we have pledged Australia to fight. … If the Defence Department confesses ‘ itself incapable of the job, let the Government put the men into camp, and, with the help of those who fought in the last war. they will train themselves. . . .

That article expresses views which I hold very strongly, and which I commend to the Minister’s careful perusal. Finally, I should like to know why the Minister is not using the Australian Imperial Force Reserve?

Mr STREET:
UAP

– Yes. But the amount thus paid out represents almost the whole of the direct taxes taken from the people. The Leader of the Opposition omitted to mention that fact, in his criticism of the financial policy of the Government. I draw attention also to his evasion of reference to the practice followed by his own party when it was previously in office. He seemed - almost with his tongue in his cheek, I should say –4o take some pleasure in hurling at this

– That is a legacy from the Scullin Government which subsequent governments have maintained and developed until it has become a vital factor in the financial structure of the country. I cannot understand why honorable members of the Opposition should now raise the cry that the sales tax is an iniquitous weapon of taxation which bears heavily on the poor people. The less they say about it the better, in my opinion.

– I do not know whether it has or not. An offer was made to the- Prime Minister, and all we know is that, so far, no answering offer of co-operation has been made. In view of the gravity of our situation, I hope that personal ..animosities and personal ambitions will not be a barrier to that unity which the nation demands.

– That is so. It is prepared to play its full part, if conditions permit, in any part of the world, and to send its soldiers to fight side by side with the soldiers of the Mother Country for the principles it holds dear. The policy of the New Zealand Government is to enrol volunteers to train - I mark the word “ train “ with all the emphasis I can - and be available for service either at home or overseas. If the international situation be such that no troops can be sent overseas, is it not better to have at home trained forces rather than a half-trained Militia? The Government should at once adopt a policy of that description; it should at once call for volunteers who are prepared to train properly in camp, who will be available, should they be called upon at any time, primarily to defend this country or, if not, to defend the principles for which we have engaged in this war. I hope that, before long, some statement of government policy of that description will be made. The present militia system, so far as efficiency is concerned, may almost be described as a waste of money.

The last subject upon which I wish to speak generally is one of much less importance, but it has something to do with this particular period. I shall speak for a moment, strange to say, on the tourist trade. As we are embarking upon this difficult period, the end of which we cannot see, I believe that any suggestion that lias for its purpose the attracting of money to Australia is worthy of consideration. The tourist trade, as honorable members know, is one of the most lucrative trades in the world. It is of more benefit to Canada in some years than the wool clip is to Australia. The hotel industry is the sixth or seventh largest, industry in the United States of America, and is mainly buoyed up by the tourist trade. Again, in Great Britain, European countries and the East every year sees the expenditure of millions of pounds in the tourist trade. Americans spend annually overseas millions of dollars, if not millions of pounds sterling. To-day, because of the unsettled state of the world, it is no longer safe for them to travel to Great. Britain or the Continent.

Mr Mahoney:

– Let them come to Tasmania.

Mr HUTCHINSON:

– Conditions in China and Japan do not attract them. Therefore it seems that Australia may prout in this respect from the unsettled state of the world. I, in common with other honorable members, have travelled in the United States of America. We know that, although the American people are intensely interested in Australia, they know practically nothing about this country. Just as there is a desire in the hearts of the Australian people to see the United States of America, possibly even before the Old World, there is a desire among the American people to visit Australia. During this period, when the Pacific is free, and American ships ure able to cross it with very slight degree of clanger, we should profit from this somewhat exceptional set of circumstances. If we can lure to these shores tourists who normally travel to the Continent or the East, but who, because of unsettled world conditions to-day, are cut off from that travel, we shall be doing something of advantage to this country, and it is possible that we shall be able to develop this trade to a degree hitherto unknown in our history. Although this point is, possibly, of minor importance as compared with the other points I have raised, it is nevertheless, worthy of consideration.

In conclusion, I repeat that we should face the period ahead as a united nation and that the example of unity should first of all come from this national Parliament.

Mr MAHONEY:
Denison

.- 1 have listened with interest to the speeches delivered during this debate. I was particularly interested to hear the Prime Minister (Mr. Menzies) say how pleased he was at the co-operation that has been extended to him by the members of tin Labour party in this House in the great crisis through which we are passing Recently there has been a substantial reduction of the value of our exports accompanied by rising taxation. Any country which finds itself in that position is right up against it. However, a i this is the last year of office of this Go vernment we see some glimmer of hopi for the future, though that hope is overshadowed by the war in which we are engaged. When the national debt of the Commonwealth is increasing year by year until we face a total indebtedness of £1,295,000,000, is it any wonder that the Treasurer is alarmed and showing signs of distress in facing his obligation? as the first man in Australia? It is noi for the Opposition to formulate the policy of the government of the day, and therefore the Government has every reason to be thankful to the Opposition, which represents the majority of the electors of Australia, for the unselfish way in which it has assisted it by its co-operation in the measures necessary for the protection of this country. The Government has looked in vain for a similar measure of co-operation from the Country party The United Australia party and thi.

Country party have been fighting like Kilkenny cats and it appears that the fight will continue until one or the other is annihilated.

I must confess to some surprise that the honorable member for Deakin (Mr. Hutchinson) should have gone out of his way to hurl insults at the Labour party in connexion with the training of the defence forces of this country. I remind the honorable member that thatis a matter for which the Government must accept responsibility. However, I do not propose to be as hard on the Government as was the honorable member.

Mr Conelan:

– He slated his own Government.

Mr MAHONEY:

– That is so, and at the same time, he attacked honorable members on this side of the House for their failure to do what the Government itself is charged with responsibility for doing. Our overseas trade has declined from £122,000,000 in 1937-38 to £108,000,000 in 1938-39. The Government of the day has to accept responsibility for these astounding figures.

I support the remarks of my leader concerning the incidence of the taxation proposals of the Government to augment its reduced income. Like its predecessors, it proposes to relieve its wealthy supporters of hundreds of thousands of pounds of taxation and to impose further sacrifices on the poorest sections of the community. The wealthy land-owners of the capital cities should be called upon to contribute a greatly increased share of the revenue. Surely it cannot be said that to impose an additional burden of taxation on the bread of the workers of this country is a statesmanlike act. It is the large working-class families that eat the most bread, and therefore it is upon them that the burden of the flour tax falls. If the Government desires to exhibit true statesmanship, it should not tax the necessities of life. Among the poorer classes, bread is a staple food. The Government has invited criticism, and I am endeavouring to give it in a friendly manner. I understand that another budget is to be brought down later, and I hope that it will contain some measure of relief for the masses of this great Australian nation in this time of national emergency. The workers to-day are paying indirect taxes amounting to millions of pounds per annum. It is of no use to claim that a large amount of this taxation is on luxuries. Such is not the case. The taxation is on such things as clothes, and it is the working people who wear out the most clothes.

In his budget speech the Treasurer made an. announcement which showed anything but true statesmanship. Ho informed us that it was proposed to increase the tax on beer, a commodity which, in some instances is a medicine, and the very life of workers employed in dangerous industries. Some of the most eminent specialists in the world to-day have stated that” it is essential for men working in industries where dust is prevalent to have a glass of beer a day. That additional taxation represents more than £9 a year - a heavy impost on the worker. It would be just as logical to tax the afternoon teas in which the idle rich indulge. I enter my protest on behalf of the industrial workers who work in coal-mines, in the cement industry, in steel works, and in the zinc industry in Hobart, in which work is carried on amidst deadly fumes. Medical authorities have advised the workers iii industries where dust is bad to consume a certain quantity of beer in order to rid their systems of harmful dust.

I am here to protect the workers upon whose shoulders fall rauch of the burden of providing the defence requirements of this country, and in some instances, of the British Empire. One would expect from the Government legislation equitable to all classes of the people; because every section of the community should play its part in providing the additional funds required to carry on the tremendous struggle in which we are now engaged. I know that the war will be a long one, and I know the tragedies thai will take place in this country and in other countries of the Empire during the struggle. We have to organize our resources, and must he prepared to give every assistance possible. I commend the Leader of the Opposition (Mr. Curtin), and also the right honorable member for Yarra (Mr. Scullin) for their suggestion that Australia should send to Britain as a gift portion of our surplus foodstuffs.

That could be accomplished by the Commonwealth Government purchasing from the primary producers all of their surplus produce at current ruling prices. It is a logical proposal, and shows true courage and a commendable spirit of cooperation. At any rate, it is evidence of a sincere desire to help Great Britain and Prance.

I listened with interest to the criticism of the Scullin Government offered by several honorable members. In my opinion, the work of that Government, far from being a tragedy in the political economy of this country, was an achievement. “When the Scullin Government came into power, Australia’s finances were in a shocking condition owing to maladministration by the “ Tragic Treasurer “, the right honorable member for Cowper (Dr. Earle Page), during the term of office of the Bruce-Page Government. The administration by that Government was one of the greatest tragedies in the political history of this country. The preceding Government, led by the right honorable the Attorney-General (Mr. Hughes), went out of office leaving a surplus of £5,000,000. When the Bruce-Page Government concluded its term of administration there was a deficit of £7,000,000. This meant that there had been a leakage of £12,000,000, owing to incompetent administration. It was the start of the depression in.this country. Honorable members may gibe at the Scullin Government, as the honorable member for New England (Mr. Thompson) did this afternoon, but history is just as kind to us as it is to honorable members opposite. Labour has only occupied the treasury benches for two years in the last twenty years, and even during that time there was a hostile Senate, so the party to which honorable members on this side of the House belong has had very little opportunity to put its principles into effect. Prominent members of the United Australia party have admitted to me that it was the Scullin Government which pulled Australia out of the financial morass into which it had been plunged by the Bruce-Page Government. Now the Menzies Government has to meet its problems without our assistance, and it will be interesting to see how it faces up to its responsibilities.

It is our duty to organize all of the resources of this country in order to prosecute this war in the most efficient way possible; and to that end it is necessary, wherever possible, to utilize all of the natural resources of the nation. I visualize a prolonged struggle, and I realize what Australia’s responsibility will be.

.- I hope that the patriotic outburst of the honorable member for Denison (Mr. Mahoney) will have some effect in helping us to do something of a constructive form in this

Parliament to show that we have a really national outlook and are anxious to do our best to defend the country.

It is impossible to deal effectively with the budget under existing conditions. So far we have not a copy of the budget speech before us and consequently we cannot study effectively the various matters at issue and form a sound judgment thereon. Of one thing I am certain, however, and that is that the Government should immediately strive to curtail extravagant expenditure. An enormous amount of waste goes on in the Commonwealth every year. I suggest that a thorough survey be made in order to present a continuance of this policy. Even in the matter of travelling a great deal of unnecessary expenditure is incurred by typists and assistants of one kind and another going all over the country. To take another illustration near at hand [ have no doubt that anything from 25 per cent, to 40 per cent, could be saved in the cost of the new Patent building now being erected a few hundred yards from here.

We ought to be conserving all of our resources for the effective prosecution of the war. I would not limit, in the slightest degree, any expenditure that is necessary for war purposes; but I would reduce other expenditure to a minimum. The Government is about to appoint an assistant to the Public Service Arbitrator. This is another illustration of extravagance. We appointed a Public Service Board years ago at considerable expense to supervise the Public Service. As the board had done very fine work I cannot understand why the Government should have subsequently appointed a Public Service Arbitrator to nullify the effects of its operations. Icould bring under the notice of honorable members many almost impossible awards that have been made from time to time by the Public Service Arbitrator. Just fancy people being paid from 4s. 6d. to 4s. 8d. while travelling in the train and doing nothing but reading novels or playing cards ! That is the kind of extravagance that I resent.

The Leader of the Opposition (Mr. Curtin) drew attention this afternoon to the increase of £20,000,000 a year that has been made in taxation in Australia compared with the return for three years ago. He said that comparatively very little of that money had been expended .in armaments. The Government should look into this aspect of our financial operations. The honorable gentleman also drew attention to various classes of taxation and suggested that indirect taxation did not bear as heavily on the working classes as direct taxation. I disagree with him in that connexion. The trouble with indirect taxation is that it is so insidious that people do not realize how much it costs them. Our whole financial policy is wrong. By means of indirect taxation even essential goods sometimes cost from 300 per cent, to 400 per cent, more than they should cost. A good deal has been said in the course of this debate about the sales tax. That process of taxation was introduced by the Scullin. Government in 1931. Even at that time I argued that a turnover tax would be preferable. In my opinion a turnover tax of i per cent, would yield more than the present sales tax yields at 5 per cent, and the money could be collected at very much less expense, and with a great deal less irritation to the general community. We shall have to husband all of our resources, for no one can tell what the future holds for us, or which of the countries now neutral may ultimately be embroiled in the war even as soon as the next few weeks.

If it had not been for the recent action of Germany in making a pact with Russia Australia might, by now, be very greatly concerned about the designs of a certain eastern nation upon our territory. We might have been fighting to defend our own shores by this time. The Russo-German pact may have repercussions on the Axis. Spain, I should say, would have no association with Russia and I do not think that Italy has been brought any nearer to Germany. No one can foretell what attitude Japan will take. There, however, is not the slightest doubt that both Italy and Japan will present a very big bill if they are to remain neutral in the present conflict. It is our duty to take every step necessary to make ourselves prepared. I do not believe in conscription for service overseas - in fact, I should welcome a law against that for the pacification of the people - but I have no time for the man who, whilst wanting the benefit of our laws, is not prepared to defend this country. I asked a meeting of women in Perth whether they would be prepared to send their sons untrained into the boxing ring and pointed out the analogy of our men being unfitted to meet a trained invader. We should have universal training in Australia. When it operated before, the system did a great deal of good. Rich and poor were brought together and the individual benefited as much as the nation. The universal training law is still on the statute-book and could readily be brought into operation. I entertain bitter feelings against Ministers who, in recent years, have been to Europe and have seen the approaching danger and have failed, on their return, to take the people into their confidence and point out the necessity to make Australia’s man-power ready for any emergency. For years, until the recent recruiting campaign, the strength of the Militia was only a few thousands. We all know what our young men did in the last war. The Labour party introduced universal training and its advantages were so clearly demonstrated by those who enlisted that I now hope that all parties will join together in its re-introduction. Even under the voluntary training system things are not as they should be. In Wiluna, for example, there is a large body of young men whose application for military training facilities was refused by the Department of Defence. I could cite other similar examples.

Mention bas been made of profiteering. 1 believe that the Ministry will do everything possible to prevent profiteering, not only in the manufacture of munitions, but also in the provision of the necessities of life. The people of Australia will be disappointed if profiteering is not put down.

Last week the honorable member for West Sydney (Mr. Beasley) dealt with the causes of war. Oan there be any doubt that it is the spirit of self-containment in the world to-day that is the cause of the unrest, trouble and war between nations? I have frequently asked this question: “ If you were a young man in Germany or Italy; countries with ever-increasing populations, and you found in other countries that the immigration laws operated against you and that trade and commerce so operated that your country could not buy raw materials and you could not sell your produce, would you not fight for a place in the sun ? “ The world will never be settled while economic nationalism, to which Australia subscribes, prevails. What is necessary to bring nations together is freer trade. I do not say “ free trade.” Mr. Cordell Hull is a leading exponent of such a policy. A similar doctrine was propounded in the report made by Van Zealand, who’ was commissioned by Mr. Chamberlain and the leaders of other nations. If the conditions which prevailed prior to 1914 were abroad to-day, we should not be in the midst of this dreadful conflict. Nations, like men, need a fair share of the earth’s resources and it is the better part of wisdom if these resources are available through the peaceful channels of trade. But if you close those channels these nations must turn to force in a desperate effort to achieve their needs. To show how our self -containment policy has increased I quote from an extract from the Pastoral Review of the 12th June last, which shows the rise that has occurred since 1913 of the costs of the wool industry. Shearing hand nieces which in 1912-13 were £2 10s. each cost £5 17s. 6d. to-day. Shearing combs at £2 8s. per dozen are twice as dear now as they were then. Shearing cutters cost 13s. a dozen as against 5s., hand piece forks £1 ls. each as against 6s., wire netting £50 6s. 2d. a mile against £31 2s. 6d. The list is too long to read, but the price increases range from 100 per cent, to 350 per cent. The freight on truck sheep or cattle from Warren to Sydney which was £6 5s. in 1912-13 has risen to £13 2s. lOd. to-day. I have statistics relating to agricultural machinery showing similar increases, but I shall not delay the committee with a. recital of those. Much of our unemployment is due to the fact that we have destroyed those industries which create spending power. The annual . value of our exports just before the depression was about £140,000,000, but in the four years of the depression, 1929, to 1933, the value of our exports averaged over £50,000,000 a year less. In other words, in those four years there was £200,000,000 less spending power; hence the depression- with unemployment and misery in its train. Men were tossed out of work as a result almost entirely of the fact that we have done our best to destroy almost every market available for our exports.

The Leader of the Opposition referred to economic conditions and banking. Some extraordinary statements have been made about banking. The Leader of the Opposition said that Germany had been able to get money free of interest from the Reischbank to enable it to finance its vast expenditure.

Mr Mahoney:

– Mr. Bruce said that was all right.

Mr GREGORY:

– It was all wrong. The Leader of the Opposition said that if money could be found for defence it could also be found for the unemployed. When the safety of the country is at stake everything has to be done to defend it - even the creation of credits to the extent of dangerous inflation if necessary. I refer the honorable gentleman to the circular I issued in answer to criticism of the Commonwealth Bank. One piece of propaganda about the Commonwealth Bank is that the Bruce-Page Government made amendments in the original Commonwealth Bank Act which tended to destroy its powers and lower its prestige. I have asked every honorable member to cite one amendment which has tended to do that and no one has been able to do so. The fact is that no amendment of any sort was made by the Bruce-Page Government which tends to reduce the powers of the Commonwealth Bank. On the contrary, its powers have been greatly increased. But in relation to the creation of credit to which the Leader of the Opposition has somewhat committed himself, I received a letter from one gentleman saying that Hitler was “ putting it all over us “ as far as finance is concerned. “ He was obtaining all the money he needed for defence from the Reischbank free of interest.” What Germany is doing could not be done by any other country because in no other country has the Government so much domination over the people as the Reich Government has over the Germans. But with all that, power Herr Hitler is unable to apply the policy which the honorable member for Denison (Mr. Mahoney) would apparently like’ to see applied here. The

– Yes, as we got it in the last war. Every one who is old enough will remember that, plastered on all the banks, in public buildings, even on the trains and trams, were posters calling upon the public to subscribe to the war loans. Through the Commonwealth Bank and the trading banks every penny spent on the war was provided by credits established on mortgages, and other securities pledged for the . purpose. In June, 1919, the balance-sheet of the Commonwealth Bank showed that the total amount . of Commonwealth securities held by that bank amounted to only £7,200,000. Sir Denison Miller stated that the bank had raised £350,000,000, but it was not raised by the hank; it was raised by public subscription, and in regard to the present war I hold that all loans for war purposes should be compulsory, according to income, and that the interest rate should not exceed 2½ to 3 per cent.

During the last war, England made a grave mistake by persistently borrowing money at. high rates of interest, and we did much the same thing here when we issued loans at 4£ per cent, and 5 per cent. At the very start of the war, I suggested that every loan should be a forced loan. Everybody should be compelled to subscribe according to his income, and the interest rate should nol be more than 2£ per cent, or 3 per cent. 1 make the same proposal, now. There would be certain exemptions, of course, because I do not suggest that a man on £3 or £4 a week should have to subscribe. But everybody in a position to do so should be compelled to invest in the war loans, and the rate of interest should be kept as low as possible.

I am prepared to give the Government all power necessary for the successful prosecution of a war. I believe that heavy sacrifices may be demanded of the people before this war is over. I hope that before long the policy enunciated by the Leader of the Opposition will be amended, so that all parties in this Parliament may join in a united government. The Leader of the Opposition says that in this fight for liberty our own liberty must not be molested. What does he mean by liberty? Does he mean liberty or licence? At this time, the trade unions should be prepared to make some sacrifice, if necessary, in the common cause. I hope that it will yet be possible to bring all of the parties - the Labour party, the Country party and the United Australia party - together, so that they may work towards the one great objective, the winin ing of the war.

The people in Western Australia have been having a bad time as the result of the low price of wheat. I hope that the Government will make an early pronouncement of what it proposes to do in regard to the wheat-farmers. At the present time, some of the merchants who made advances to farmers on their crops, are -demanding, in the terms pf the contract, to take over the crops at the ruling price in Western Australia of ls. 8d. a bushel, because the advances have not been repaid by the due date, the 15th September. The price of wheat in New South Wales is 2s. 8d. a bushel as against ls. Sd. in the west, so the farmers in the west would suffer a grave injustice if their wheat were taken over at the lower price. !I hope that the Government will no longer delay in making a statement on this subject. Finally, in relation to the position of the wheat-grower, I am placing my faith in the promise of the Minister for Commerce, who has assured me that a payable price will be provided. With the present low price of wheat and the necessity for the Government taking over the whole of our production, I cannot expect a guaranteed minimum price at as high a figure as one would expect, but I am hoping for a guaranteed minimum price of not less than 3s. 8d. a bushel, at the port. Less than that would mean ruin to the farmers and disaster to the nation.

Mr. BARNARD (Bass) [9.43 J. -I desire to associate myself with the statement of the Leader of the Opposition (Mr. Curtin), who outlined the policy of the Labour party and offered some valuable criticism of the budget. He also stated to what extent, and in what manner, the Labour party was prepared to assist the Government at this time. The honorable member for Swan (Mr. Gregory), who has just sat down, has this to his credit: He has consistently advocated the same fiscal policy, something which is very near free tra de. Wo are now faced with the fact that unemployment is steadily increasing, this despite the fact that a great deal of money has been expended during the past year on defence work, clearly indicating that money taken out of the ordinary channels and expended for defence undertakings does not provide a maximum of employment. It has been advocated by honorable members opposite that the spending powers of the State governments should be definitely restricted in order that as much money as possible may be expended on defence preparations. Since the enlarged defence programme was put into operation very little additional money is being expended for defence purposes in Tasmania, and the greater portion of it is expended on the purchase of equipment, stores, &c. So it will be seen that if the ordinary works services of the States were to be curtailed unduly, Tasmania would be in a very difficult position in a very short time; the Tasmanian Government would still have to accept responsibility for caring for the unemployed and would have very little money coming in to meet the cost. Any slackening of the ordinary channels of expenditure under the State programmes must be given serious consideration. Unfortunately the national debt continues to increase. It has now reached the alarming amount of £1,295,000,000, and if we can accept what has been said by some honorable members, the additional expenditure resulting from Australia’s participation in the war will add to it tremendously.

We have been told by the Treasurer (Mr. Menzies) that the money required for the financing of Australia’* share in the war will be obtained in the orthodox way; in other words, it is proposed to allow posterity to carry the burden. During the prosperous years through which Australia has just passed some effort should have been made to provide money for the adequate defence of this country. The Treasurer has announced that it is proposed to obtain an additional £2,360,000 in income tax, and that sales tax and other indirect taxes are to yield an additional £3,550,000. I propose to confine my remarks mainly to the methods by which the Government proposes to raise this additional revenue. Wage-earners and the less fortunate people in the community are to be called upon to contribute in indirect taxation no less than £3,500,000. Additional sales tax will be imposed on socks, shirts and other necessaries of the poorer classes, whilst the more prosperous people in the community who could well afford to beaT a greater share of the burden are to escape with an additional impost of 10 per cent, on income tax. The Leader of the Opposition made some very telling comments with regard to the incidence of indirect taxation in the community during the years in which this Government and its immediate predecessors have occupied the treasury bench. The honorable gentleman showed quite clearly that in this squeezing process the poorest sections of the community suffer most. The honorable member for New England (Mr. Thompson) argued that, because direct and indirect taxation, both State and Federal, yielded approximately the same amount, there was not much to support what the Leader of the Opposition said. One fact, however, which the honorable member for New England omitted to take into account is that this Government and its predecessors of the same political complexion during the last six or seven years have done nothing to assist in the relief of unemployment. During the whole of this period, although the State governments have had to carry practically the whole of the burden, the Commonwealth Government has taken a good deal of credit for what has been done.

I turn now to some remarks made by the Treasurer, in his budget speech, concerning banking and monetary reform. In a flippant and light-hearted fashion the right honorable gentleman criticized those who have advocated monetary reform.

Mr Pollard:

– He set up his own Aunt Sally.

Mr BARNARD:

– Yes, and then proceeded to knock it down. As the Assistant Treasurer (Mr. Spender) will agree, lawyers frequently do that; it is a game which the Treasurer has often played. Referring to the power of the Commonwealth Bank to create money, the Treasurer, after quoting paragraph 504 of the report of the Royal Commission on Banking and Monetary Reform, said -

That most satisfying statement is torn from its context and presented to us, and then we are asked in effect, “ What sort of people are you’: You have been told by the royal commission that you can obtain any amount of money without charge. Why don’t you get it “ ? The belief apparently is that if we did get money under these circumstances, the result would bc that we would have no taxes, no public borrowings, and, to put it in the old phrase, “ Everything in the garden would be lovely “.

Paragraphs 503 to 506 of the royal commission’s report read - 503. The central bank in the Australian system is the Commonwealth Bank of Australia. This bank is a public institution engaged in the discharge of a public trust. As the central bank, its special function is to regulate the volume of credit in the national interest, and its distinctive attribute is its control of the note issue. Within the limits prescribed by law. it has the power to print and issue notes us legal tender money, and every obligation undertaken by the Commonwealth Bank is backed by this power of creating the money with which to discharge it. 504. Because of this power, the Commonwealth Bank is able to increase the cash of the trading banks in the ways we have pointed out above. Because of this power, too, the Commonwealth Bank can increase the cash reserves of the trading banks ; for example, it can buy securities or other property, it can lend to the Governments or to others in a variety of ways, and it can even make money available to Governments or to others free of any charge. 505. If it buys securities, the seller receives a cheque which will usually be deposited with a trading bank. When the cheque is presented to the Commonwealth Bank for payment, whether it is cashed or added to the trading bank’s deposit with the Commonwealth Bank, the cash reserves of the trading bank are thereby increased. The same result follows from the adoption of any of the other methods. <i06. On the other hand, the power of the Commonwealth Bank to increase the cash reserves of trading banks is not unlimited. The Bank is bound to pay in legal tender money whenever called upon. So long as its power to issue notes is restricted by law, its power to purchase securities or other property, and to lend or grant money to Governments ov others, is limited. Apart from the legal limitation, there is a practical limit to the note issue, in that the Bank has to consider how far it is in the general interests of the community to expand credit.

These paragraphs, read in conjunction with each other, do not take from or add one iota to the claim of those people who advocate monetary reform. To suggest to this ‘ Parliament that paragraph 504 is deliberately taken out of its context with the object of misleading people, or of suggesting that something should be done, is absolutely absurd. Nobody knows better than the right honorable gentleman himself that he is merely putting up a fictitious proposition because he wants to be able to knock it down again. The people of this country who are advocating monetary reform - and there are many - honestly believe that something can be done to meet the needs of the community by getting away from the o& banking system, which has failed to satisfy modern requirements. I have a definite object in putting the whole of these paragraphs into Hansard in reply to the flippant suggestion by the Treasurer regarding the turning on of taps in order to allow unlimited credit to flow into the community. That suggestion was made in a light-hearted manner, and it carries no weight so far as we are concerned. I do not think either that it carries much weight outside Parliament. In view of the fact that, in presenting his budget, the Treasurer took the trouble to make that statement it seems to me to be a fair and reasonable deduction that he had a definite motive for doing it. It seems to me also a fair and reasonable deduction that the power behind the throne of money has had a very material effect on the Treasurer’s mind and influences his outlook. The Banking Commission cost more than £22,000, and it investigated thoroughly the monetary and banking systems at present in operation in Australia. It made an extensive survey of the Australian economy, and the banking and general financial systems, and made many important recommendations. All that happened two years ago, and up to the present, no real effort has been made to give effect to any of those recommendations. An unbiased reading of the report leaves the impression that the commissioners found three salient needs. They are as follows: (1) strengthening of the central bank; (2) the application of correction for the discriminatory co-operation by private hanks with the central bank in the past; and (3) regulation of banking with a view to classification of banking business as a public utility rather than a province of private enterprise with unrestricted propensity for profit earning. For a considerable period following the presentation of the Commission’s report there has been a not unnatural hostility to the strengthening of the central bank. In fact, opposition to the central bank has been a feature of the private banks’ relationship with the Commonwealth Bank in the past. Here I should like to read from the journal of the Bank of New South Wales, published on the 23rd August, 1937. The article is set out under quite a number of headings. I do not propose to read all of it, because no doubt honorable members would not be very interested. There is one short section, however, which I propose to read. It is contained in the conclusions to which the Bank of New South Wales authorities have come and is as follows : - From the earliest days of our foundation, the Bank of New South Wales has always placed service to the community first and the earning of profits second. Indeed, it was charged to do so by its founders, who at a period of crisis in the history of the infant settlement on the shores of Port Jackson came together and resolved out of their private resources to found an institution to provide urgently needed financial services. The bank can claim with pride that it has been loyal to the intentions of the founders.

Those of us who have taken some interest in the economy of this continent and have followed the history of the Bank of New South Wales know just how very sincere it has been in placing service to the corn muniity before the making of profits. We know how absurd that suggestion is, and, therefore, we realize how -little value can be placed on the criticism by the Bank of New South Wales of the royal commission’s report. .Due to the criticism of the royal commission’s report, Professor Mills, who is Professor of Economics at the Sydney University and was a member of the banking commission said, according to a. newspaper report, on the 19th October, 1937-

Some of our critics have left out altogether thu part which is the whole spirit of our report. This is the one that reads “We are of opinion that the regulation of credit by thu Commonwealth Bank will in general be best achieved through the exercise of existing powers and the development of the practice of co-operation between the Common wealth Bank and the trading banks.” We went on to say that the Commonwealth Bank could not be sure of such co-operation and for that, reason alone we recommended a special power only with the consent of the Treasurer to call up minimum deposits from trading banks. We purposely refrained from specifying any definite ;i mount. If wc had specified an amount hig enough to do the whole job it would have been too large. We realized that it was a weapon of great force, but not likely to be used. It was only an emergency measure.

That is the opinion of Professor Mills who says that the pith of the report made by the royal commission was the fact that they placed control over this matter in the hands of the Treasurer and by so doing, placed it in the hands of Cabinet in the first place and of Parliament in the final analysis. It is well-known that control over the issuance and distribution of credit is not in the hands of the Commonwealth. It has been very largely influenced during recent years by private banks which have controlled the situation, not as the Bank of New South Wales suggests as an act of service to the community, but with the object of protecting their own vested interests in the community at the expense of members of the community for profit-making. The question of banking, particularly in view of the royal commission’s report, should be dealt with immediately, and an effort should be made to meet the requirements of the community by a utilization of the central bank, and through the action of the Commonwealth Bank itself. I am. quite satisfied that the community as a whole is not prepared to continue to suffer as it has of recent years in this land of plenty when we can produce at a more rapid rate than at any other time in the history of the world. That applies not only to secondary industries but also to primary industries. On the one hand we find people accumulating a mass of real wealth, and on the other hand we have those unfortunates who arc not participating in the fruits of this wonderfully bountiful harvest placed in our hands by science and the ingenuity of mankind. I am satisfied that because of these things, and because our system of exchange of goods and services has failed to meet presentday needs, a state of unrest has been brought about, not. only in his country but also in many others. Unless this Parliament, which represents the spirit of democracy, tackles the problem that confronts us as a nation I am afraid that democracy will receive a shock here in the same way as it has received’ setbacks in other parts of the world. I do not suggest for a moment, either flippantly or seriously, that by turning on a tap or a number of taps we would be able to release a flow of credit into the hands of the people which would bring about a paradise on earth. The whole question is related to the need for a proper banking system which would utilize the credit of the community in the interest of the community. Further than that, I think the question of profits and of distribution, and the whole ramifications of this matter, must be explored. As a first step towards that end I suggest that the Government should tackle the question of bringing into effect the recommendations of the royal commission made two years ago. In the Treasurer’s budget statement for 1938-39 there appears the following paragraph : -

Banking Legislation.

The Government proposes to bring down at an early date a measure to amend the Commonwealth Bank Act. Provision will be made in the bill to give effect to certain recommendations of the royal commission on tlie monetary unci banking system, including mortgage banking. Opportunity will also be taken to make other necessary amendments to the Commonweath Bank Act.

That was twelve months ago and, so far, we have heard nothing about even this very minor section of the report of the royal commission beyond the appearance of the Mortgage Bank Bill on the notice-paper.

Mr Pollard:

– That is as far as it will go.

Mr BARNARD:

– As the honorable member for Ballarat suggests, that is probably as far as the matter will go. I suggest to honorable members of this House, and to the people generally, that the time is rapidly approaching when, if this Government, or a government of a like character, does not tackle this important question, the Treasury bench will be handed over to an administration that is prepared to face up to its responsibilities. The greatest necessity of this country to-day is monetary and banking reform. Although the Labour party agrees that the first step towards such reform is the adoption of all of the recommendations of the royal commission, this is the very least that can be undertaken at the present time. I do not propose to labour the question, but I do emphasize that the tremendous gap that exists to-day between production by mechanized industry and the people who are in want, and in many cases destitute, is something that cannot long be ignored. I suggest that the question should be given serious consideration, not only because of the position in which we find ourselves in the. economy of this country, but also because of the tremendous burden that confronts us in the prosecution, of the war. If this banking legislation were enacted, much more could be done through the Commonwealth Bank than is possible under its present constitution, because it is hampered and hamstrung by the vested interests which control or influence it. I want the Government to make possible the utilization of the credit resources of this country in the interests of the people as a whole. 1 hope and trust that the future will not be quite so black or gloomy for the people as surface indications now ‘ make it appear likely, that the tremendous carnage in Europe and other parts of the world will be brought to a speedy conclusion and that the economic structure of the different nations will be placed on such a basis that the principle of the brotherhood of man rather than the present brutal methods will hold sway.

Mr JOLLY:
Lilley

.- At the outset of my remarks I congratulate the Treasurer (Mr. Menzies) on the very able manner in which he introduced the budget. The right honorable gentleman made clear to all honorable members the various important features of the budget. I also listened with very great interest to the remarks of the Leader of the Opposition (Mr. Curtin), particularly to that portion of his speech in which he dealt with direct and indirect taxation. The honorable gentleman pointed out that between the years 1931- 32 and 1938-39 indirect taxation had increased considerably, whilst direct taxation had remained practically stationary. I point out that a comparison of the budget estimate for this year with the receipts for the year .1935-36 will show that the reverse is the case. The estimated receipts for 1939-40 from indirect taxation - customs and excise, sales tax and flour tax - are £62,850,000. The indirect taxation for the year 1935-36 yielded a little over £52,000,000. Thus the increase in the five years amounts to £10,839,000, or slightly over 20 per cent. The estimated receipts from income tax, land tax, and estate duty for the current year are £17,160,000, compared with a yield in 1935-36 of £11,596,000, an increase of £5,563,000, or nearly 50 per cent. I submit that within recent years the increased taxes have been on a relatively higher scale in respect of direct, taxation. Incidentally, the Post Office revenue, which does not come under the head of either direct or indirect taxation, because the Post Office is a business undertaking, increased during the same period by £3,092,000, or slightly ever 20 per cent. The telephone’ revenue increased by £1,963,000, which was over 30 per cent., and postages increased by £831,000, or 15 per cent. I refer to those items in particular, for the simple reason that it must be realized that the surplus from the Post Office undertaking is largely another form of taxation. It is true that during the last financial year, the capital expenditure on additions and new works was greater than the surplus revenue. I contend that if there is any governmental activity upon which the expenditure of loan money is justified, it is the Post Office, because that undertaking shows a surplus only after paying to the Treasury an interest bill of £1,500,000 and making provision for sinking-fund payments.

The honorable member for New England (Mr. Thompson) suggested that, in view of the present critical position, the Commonwealth Government should prevent the State governments from increasing their taxation. I suggest that the time has arrived when the Commonwealth Government should confer with the States with the object of effecting co-ordination in taxation measures. This is necessary at the present stage, in the interests of national economy. We shall then be assured that the incidence of taxation will be equitably borne by all sections of the community. In certain directions there is overlapping of taxation by the Commonwealth and State governments and municipal authorities, and if we are not careful certain sections of the community will be obliged to pay more than their fair share. So far the Commonwealth Government has relied for its revenue largely upon indirect taxation; but it is clear that it will encroach much further on the field of direct taxation in the future than it has in the past. This is plainly indicated by the figures that I have quoted, showing that during the last five years direct taxation has increased by 50 per cent., whereas the increase in respect of indirect taxation has been only 20 per cent. The State governments have had to increase their taxation considerably. It is imperative that future proposals of the Commonwealth and the States should be in some degree co-ordinated. A careful review of the position in relation to direct taxation throughout Australia by Commonwealth, State and municipal authorities for all phases of governmental activities, should prove of considerable interest to honorable members. The direct taxation to be levied by the Commonwealth Government during the current financial year is estimated to yield £17,100,000. Last year the State governments raised £41,000,000, and the municipal authorities £13,000,000, in the form of direct taxation. It will thus be seen that a population of slightly under 7,000,000 persons is being asked to bear a total taxation burden of £71,000,000.

I wish to say a few words about land taxation. As one who has had a good deal of experience in local government affairs, I have held for many years that the field of land taxation should be left entirely to municipal and local government authorities. To-day, the Commonwealth Government is raising £1,489,000 a year from land tax, and the State, governments are obtaining £1,439,000 annually from this source, giving a total of almost £3,000,000. Yet State Governments ma.ke grants to local government bodies in Australia which total £7,800,000 a year. In view of the considerable extension of the obligations and responsibilities of local governing authorities in recent years, particularly in relation to the provision of better roads, bridges, drainage facilities and the like, and also of the fact that their sources of revenue have been limited, it would be far better for the Commonwealth and State Governments to surrender the field of land tax to these authorities.

The Commonwealth Government obtains from direct taxation about £17,000,000 a year, out of which it rnakes payments to or for the States, which are estimated in this financial year to absorb £15,575,000. This suggests that it is high time to make a careful review of our processes of direct taxation. Not only does the Commonwealth Government make these substantial grants to the States, but the State governments on their part make grants totalling nearly £8,000,000 a year to local governing authorities, purely because their sources of revenue have been curtailed. It is recognized that a sound principle of public finance is that the authority which spends should be charged with the responsibility of collecting the money it spends. It must be clear to every thoughtful person, in the community that, under our existing procedure, much overlapping occurs between governmental and semigovernmental authorities. This should be corrected as far as possible.

Certain phases of governmental expenditure should also be given the most careful scrutiny. It has been stated that this is a defence budget, but against this “we have another statement than only 10 per cent, of the amount of roughly £100,000,000 that is to be raised will be expended directly out of revenue upon defence. A marked increase has occurred in recent years in the expenditure of almost every Commonwealth department. Under the heading “Departmental and Miscellaneous Expenditure “ the increased expenditure over the last five-year period has been 42 per cent. The estimate for the current year shows a substantial increase of 10 per cent, on the expenditure for last year. In view of the circumstances which face us, we should give very careful consideration to any proposal for an increase of ordinary departmental expenditure. Increases should be sanctioned for only urgent matters. Although departmental expenditure has increased so greatly in the last five years, our population has increased by something under 5 per cent. Another notable increase of expenditure has been incurred in relation in invalid and old-age pensions; the advance in the five-year period under this heading has been 30 per cent. Interest and sinking fund charges have increased in the quinquennium by 33.’; per cent. I shall not make any reference to the increase of defence expenditure, for we all realize that our commitments in this connexion are very much greater than those of five years ago.

A_n increase of the company tax of about 50 per cent, is foreshadowed in the budget. This will be very severely felt by Queensland companies. In Queensland all profits of companies are taxed in the hands of the company. Dividends in the hands of shareholders are exempt. In fairness to the Queensland Government, and because the facts are not generally recognized, I feel that I ought to mention this fact, for in the other States the dividends of companies are taxed in the hands of the shareholders.

Mr Martens:

– Nevertheless the Queensland companies are doing very well,

Mr JOLLY:

– That may be so. The situation in this connexion is different in Queensland from that in the other States. The high company tax in Queensland will undoubtedly have the effect of increasing the severity of the increase of the company tax by 50 per cent, that is now proposed by the Commonwealth.

I do not propose to go into any further detail on these matters at the moment, as I hope to have an opportunity of dealing with some of them when the Estimatesare under consideration.

I am very pleased to know that at last some action is being taken to bring the borrowings by semi-governmental bodies under the control of the Loan Council. This is very important from several points of view. I point out in the first place that borrowings by semi-governmental bodies now exceed in the aggregate the amount of the loans arranged by the Loan Council for State governments. The Loan Council, of course, was established to control public borrowing in Australia ; but unfortunately at that time no provision was made to control borrowings by semi-governmental bodies. The action now being taken to supervise these borrowings will have the result of avoiding undue competition on the loan market, which not only has the effect of raising the rate of interest against the municipal bodies concerned, but also has an influence upon the interest rate of loans floated by the Loan Council for governments. The steps now being taken to organize semigovernmental borrowings will undoubtedly enable the local and other authorities to plan ahead. I am quite satisfied that in many ways these bodies are able to spend loan money to much better advantage than State governments. I wish to make it clear that it is for this reason that I have advocated that the operations of semigovernment bodies should be brought under the control of the Loan Council, and not because I am opposed to the operations of the local government bodies. From my knowledge and experience I am quite satisfied that better results are achieved, in many cases, by the expenditure of loan moneys through local government bodies than by State governments. As far back as the 4th October, 1927, in a letter I wrote to the then Premier of Queensland, I advocated that semi-governmental borrowings should be controlled by the Loan Council. I received a reply from the then Premier, stating that he appreciated the wisdom of taking such action, but that at that time it was impossible for the Loan Council to consider it. He hoped that the matter would be taken up at an early date. I am pleased that it has been possible for the Loan Council to undertake this work at the present time, and I feel sure that it will be of advantage to not only the Commonwealth and the State Governments, but also the municipal bodies.

I again draw attention to the urgent need for the reconstitution of the Public Accounts Committee. If Parliament is to retain control over the public purse, it is necessary that there should be some more careful examination of the public accounts than is provided during the course of the budget debate. It is not possible during this debate to make a close scrutiny and analysis of the various items of expenditure. Australia is the only British dominion that has not such a body. In England the functions of continuous examination, inquiry and review of government accounts are carried out by a public accounts committee; the House of Commons is not content with a mere formal reception of the appropriation accounts. In view of the huge expenditure on defence it is imperative that some such review should be made. It is the duty of this Parliament to see that the large sums voted are wisely expended. I urge the Government to reconstitute the Public Accounts Committee, because in all parties in this Parliament we have men who are competent to act on such a committee and would be able to give the necessary time for the work. I hope that at an early date the Government will be in a position to announce that the committee is to be reconstituted.

Progress reported.

page 435

ADJOURNMENT

Wool Scouring and Carbonizing Industry

Motion (by Mr. Spender) proposed -

That the House do now adjourn.

Mr SHEEHAN:
Cook

.- I draw the attention of the Government to the position that has arisen through the sale to Great Britain of the Australian wool clip. Two firms are engaged in the wool scouring and carbonizing industry. I refer to the Botany Wools Proprietary Limited, Sydney, and Pacific Wools Proprietary Limited, Melbourne. Representatives of these firms state that until wools are made available to them by the Government they will be forced to dispense immediately with the services of approximately 160 employees. This matter should engage the immediate attention of the Prime Minister (Mr. Menzies). The union secretary states that these firms have had a large number of men continuously employed in the in dustry during the last two years, and, prior to the acquisition of the Australian clip by the British Government, they had sufficient work in hand to’ keep their men fully employed until November next. The Prime Minister and the Premiers of the various States have stressed the necessity for keeping all employees at work. It is urged, therefore, that the Government should arrange to have some of the wool placed on commission with the wool scouring mills to enable the employees to be kept in work. The capacity of those two firms’ plants is 1,200 bales a week of scouring and carbonizing types of wool.

Mr STREET:
Minister for Defence · Cor angamite · UAP

– The matter raised by the honorable member for Cook (Mr. Sheehan) is an important one, and it will be brought under the notice of the Prime Minister. Consideration will be given to it, and a reply will be furnished to the honorable member.

Question resolved in the affirmative.

page 435

PAPERS

The following papers were presented : -

Nauru - Ordinances of 1939 -

No. 2 - Appropriation 1939.

No. 3 - Nauruan Royalty Trust Fund Appropriation 1939.

Navigation Act - Regulations amended -

Statutory Rules 1939, Nos.68,69.

Passports Act - Regulations - Statutory Rules 1939, No. 47.

Seamen’s Compensation Act - Regulations amended - Statutory Rules 1939. No.67.

House adjourned at 10.43 p.m.

page 436

ANSWERS TO QUESTIONS

The following answers to questions were circulated: -

Canberra: High School - Unemployment Relief

Mr GEORGE LAWSON:
BRISBANE, QUEENSLAND · FLP; ALP from 1936

n asked the Minister representing the Minister for the Interior, upon notice -

When was the construction of the new Canberra High School commenced?
If construction of the building had been commenced when the need for money for defence purposes became apparent, could construct ion have been stopped without undue loss? 3.Can pupils be admitted from outside the

Australian Capital Territory?

What has been the total cost for (a) the building, and (b) the fittings?
What will be the annual expenditure on the upkeep of the school, including interest on capital expenditure?
Was the school absolutely necessary?
If so, is it considered that the expenditure is excessive?

Mr Perkins:
UAP

s. - The Minister for the Interior has supplied the following answers : -

The construction was commenced on the 19th April, 1938.
It is not practicable to give a satisfactory answer to this hypothetical question, but see answer to No.6.
The arrangement made with the New

South Wales Department of Education provides for the admission of pupils from outside the Territory -

if there is no provision in the nearest State secondary school for the course which the pupil desires to follow.
1. The total cost is not yet available, as the work has not yet been completed.
2. These figures cannot be given at the present stage as they are not yet available.
3. Yes. The High School hold for years been conducted in a building erected for primary school purposes. Adequate facilities were lacking and the classes in both schools were so badly overcrowded that the educational work was severely handicapped.
4. Having regard to the necessary accommodation, equipment and facilities provided, it is considered that the expenditure on this institution is reasonable.

Dr Maloney:

y asked the Minister representing the Minister for the Interior, upon notice -

Is it a fact that the unemployed of Canberra have been informed by the department that up to Christmas they can only look for one week’s work out of four?
If so, can the Government see its way to provide them with more work?

Mr Perkins:
UAP

– The Minister for the Interior has supplied the following answer : -

Arrangements have now been made to provide these men with full-time employment.

Assistance to Wheat-growers.

Mr McHugh:

h asked the Minister representing the Minister for Commerce, upon notice -

As the question of assistance to the wheat industry is urgent and vital, when will the Government announce its proposals for assistance?

Sir Frederick Stewart:
UAP

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

The honorable member’s attention is invited to the budget speech delivered by the honorable the Treasurer on Friday, the 8th September, wherein the Government’s policy in regard to assistance to the wheat industry was outlined.

Defence Annexes at Port Augusta.

Mr Makin:
HINDMARSH, SOUTH AUSTRALIA

n asked the Minister for Supply and Development, upon notice -

Has he considered the advisability of establishing a munitions branch at Port Augusta in order to make immediate supplies available to Western Australia and South Australia, while at the same time providing the maximum of safety in location ?

Mr Casey:
UAP

– Many factors mustbe considered when the question of establishing additional units of production for munitions is being explored, among which are -

The location of existing factories and the advisability of their extension.
The question of erecting new factories contiguous to existing factories, in order that existing services and factory administration, skilled labour supply, raw materials and semi-manufactured components, &c., maybe utilized; and
If new factories are to be erected, consideration mustbe given to -
1. The strategic value of alternative sites;
2. The availability of necessary materials - raw and semimanufactured ;
3. Supply of labour, transport facilities, &c.

If additional munitions factories are to be established, the claims of Port Augusta, having regard to the abovementioned contingencies, will certainly receive every consideration.

Mr Makin:

n asked the Minister representing the Minister for the Interior, upon notice -

Has any report been tendered by the Commonwealth Railways Commissioner regarding defence annexes to the railway workshops at Port Augusta?
If so, will he lay this report on the table of the Library ?

Mr Perkins:
UAP

– The Minister for the Interior has supplied the following answer : -

The matter has been discussed by the Commonwealth Railways Commissioner with the Department of Defence, but no decision has been arrived at, and a report has not been tendered by the Commissioner.

Decentralization of Defence Industries

Mr James:

s asked the Minister for Supply and Development, upon notice -

What steps are being taken to bring about a decentralization policy in regard to the manufacture of munitions and aeroplanes, shipbuilding, &c. ?
Has he examined the danger of concentrating these industries at coastal centres wherethey will be targets for a hostile fleet?
If so, in order to ensure greater protection of these important defence industries on the one hand, and to provide a greater spread of defence expenditure on the other, will he take steps to start industriesin country areas where invulnerability is assured, and absorb many unemployed persons in the devastated mining towns?

Mr Casey:
UAP

– The answers to the honorable member’s questions are as follows : - 1. (a) With regard to the erection of new units for the manufacture of munitions, the Government must give consideration to the questions of - (i) Desirability of extensions to existing government munitions plants: (ii) the erection of new plant contiguous to existing factories in order that services, skilled labour reserve, management, &c, may be utilized; or (iii) the erection of new factories having regard to the strategic value of alternative sites, availability of labour and raw materials, transport facilities, &c. Subject to the above-mentioned considerations, the Government believes in a policy of decentralization. To date the implementation of this policy is seen in the erection of annexes and in the proposed small arms ammunition factory in South Australia, between Adelaide and Port Adelaide.

In the construction of aeroplanes for the Air Force the Government is giving full effect to a policy of decentralization. Components of airframes are to be manufactured in the various State railway workshops, and/or by contractors in the various States under subcontract to the respective railway workshops. 2 and 3. Sec reply to No. 1.

Storage of Foodstuffs and Raw Materials

Mr WATKINS:
NEWCASTLE, NEW SOUTH WALES · FLP; ALP from 1936

s asked the Minister for Supply and Development, upon notice -

When the Government’s plans regarding essential foodstuffs and raw materials arc being drawn up, will he undertake to give full employment to the facilities existing at Newcastle, such as the wheat silos, wool stores and salesroom, and cargo-handling instrumentalities?

Mr Casey:
UAP

– The honorable member may be assured that the claims of Newcastle will not be overlooked when any such plans are being considered.

Naturalization of Aliens

Mr Barnard:

d asked the Minister representing the Minister for the Interior, upon notice -

What is the length of time immigrants have to reside in Australia in order to qualify for naturalization?
Does this condition apply to immigrants under the three-year plan operating up to the commencement of hostilities?
Will the Minister review this condition with a view to considerably shortening the period, thus allowing settlers who so desire to attain full rights of citizenship?

Mr Perkins:
UAP

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

At least one year immediately preceding the application, but it is necessary for an applicant for naturalization to have resided in British territory for an aggregate period of five years within the eight years immediately prior to the application. 2 and 3. The residential qualifications which apply to all aliens alike, are fixed by the Commonwealth Nationality Act, which adopted Part II. of the British Nationality and Status of Aliens Act. The requirements are the same throughout the British Empire under a system of imperial naturalization. The question of providing for a shorter period of residence has already received careful consideration, but as it is considered vitally important to maintain the imperial system of naturalization, which is dependent on uniformity of laws, it has been decided not to take any action to have the Commonwealth act amended.

Northern Territory Police Force

Mr Blain:

n asked the Minister representing the Minister for the Interior, upon notice -

In view of the grave dissatisfaction that exists in the Northern Territory police force, will he sectionalize the force and place the Darwin section under the control of Hie Honour, the Administrator, and the mounted outback section under the Attorney-General with conditions similar to those enjoyed by the police of the Australian Capital Territory at Canberra?
Will he make moneys available to enable further household and transport staff to be added to the Residency in Darwin?
Is it a fact that new recruits to the Northern Territory police receive no training whatsoever in their duties from the time of joining till they finish their term of probation?
Is it a fact that there is no police instructor in the force?
Will he obtain on loan the services of a senior officer of the New South Wales police to inquire into the conditions of the force and recommend instruction similar to that in force in the States?

Mr Perkins:
UAP

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

Despite recent press reports, inquiries definitely disclose that there is no grave dissatisfaction among officers of the police force. The press reports were for the most part either totally inaccurate or greatly exaggerated. The fact that there has been only one resignation from the force in recent months (that of a constable who resigned last year to take up other employment) is some indication that conditions are not regarded as unsatisfactory by the members of the force. The sectionalizing of the force suggested by the honorable member would achieve no good purpose and would undoubtedly impair efficiency and smooth working.
The appointment of further full-time household and transport staff for the Residency at Darwin is not warranted.
No.
An additional appointment of inspector of police at Darwin was recently made. One of the duties of this officer is to impart instruction tonew recruits. It might be mentioned that arrangements have been completed with the Commissioner of Police, New South Wales, for recruits to the Northern Territory force to undergo a short course in Sydney prior to proceeding to the territory to take up duty.
It is not considered that there is any necessity for the inquiry suggested.

Common wealth Railways : Finances.

Mr Perkins:
UAP

s. - On the 7th September, the honorable member for Kennedy (Mr. Riordan) asked the following questions, upon notice -

What were the payments, according to the latest annual figures published by the Treasury, in respect of the Commonwealth Railways for superannuation, long service leave, sleeper renewals, exchange, sinking fund and Commissioner’s salary?
Were these payments included in the report published by the Commissioner for the same year?
What was the amount of the loss published in the railways report, and what would have been the loss if the items mentioned had been included.

The Minister for the Interior has now supplied the following answers : -

Superannuation £12,977, long service leave wages staff £4,962, sleeper renewals £77,500, exchange £55,875, . sinking fund £71,648, Com missioner’s salary £2,500.
Expenditure on sleeper renewals was included in the report. In accordance with the custom prevailing since the establishment of the Commonwealth Railways, the other items were not included.
The loss published was -

If the other items had been included the loss would have been £670,791.

Sydney General Post Office Contract.

Mr Menzies:
UAP

s. - On the 7th September, the honorable member for East Sydney (Mr. Ward) asked me the following question, without notice -

In connexion with the recent inquiry into the holding up of the signing of the contract for additions to the General Post Office, Sydney, I ask the Prime Minister whether the honorable member for Calare (Mr. Thorby) has made any application to the Government for the refund of the legal expenses which he then incurred? If so, has the Government made a decision on the matter? If it has decided to pay the honorable member’s legal expenses, will the right honorable gentleman inform the House of the reason which actuated it in doing so?

I am now in a position to inform the honorable member that, after the report of the royal commission was made public,

an application was received from Mr. Thorby that the legal costs incurred by him on. behalf of his colleague (Mr. Archie Cameron) his personal staff and himself be paid by the Commonwealth. Primarily, the Commonwealth was only responsible for the payment of the fees of the counsel assisting the commission. In view, however, of the finding of the royal commission that each Minister concerned reached his conclusions conscientiously and with regard only to the responsibility resting upon him and in the interests of the Commonwealth, the Government has decided to pay such cost? incurred by Mr. Thorby as are certified by the Crown Solicitor as ‘being reasonable.

Australians Stranded in Bombay.

Mr Menzies:
UAP

– On the 8th September, the Deputy Leader of the Opposition (Mr. Forde) asked me a question, without notice, as to what action the Government was taking to assist Australians who had become stranded at Bombay as the result, of the dislocation of shipping services consequent upon the outbreak of war.

I desire to state that the Government was advised of the position of these people and immediately took steps to communicate with the High Commissioner, London, with a view to ascertaining if the United Kingdom Board of Trade could arrange for a boat to be diverted to Bombay to pick them up. The High Commissioner has replied to the effect that arrangements will be made to provide berths at the earliest possible moment. In order to meet the case of those Australians landed at Bombay who may find themselves in necessitous circumstances, the Commonwealth Government has made arrangements with the Governor of Bombay to grant them temporary financial assistance. The Indian authorities are in touch with Mr. Gollan, the Australian representative of the Australian ^National Travel Association, and the Reverend Mr. Irving Benson, who was among the passengers landed at Bombay, and they are arranging for the welfare of all those who may be in need of assistance.

Cite as: Australia, House of Representatives, Debates, 12 September 1939, viewed 22 October 2017, <http://historichansard.net/hofreps/1939/19390912_reps_15_161/>.

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House of Representatives12 September 1939

QUESTION

SALES TAX

Mr PRICE:BOOTHBY, SOUTH AUSTRALIA

Mr MENZIES:Prime Minister · KOOYONG, VICTORIA · UAP

QUESTION

VESSELS REQUISITIONED BY NAVY

Mr BEASLEY:WEST SYDNEY, NEW SOUTH WALES

Mr SPEAKER:

Mr STREET:Minister for Defence · CORANGAMITE, VICTORIA · UAP

MINERAL LUBRICATING OIL

Report of Tariff Board

Mineral Lubricating Oil

QUESTION

BUTTER PRODUCTION

Mr FRANCIS:MORETON, QUEENSLAND

Mr MENZIES:UAP

QUESTION

INTERNMENT OF ENEMY ALIENS

Mr NOCK:RIVERINA, NEW SOUTH WALES

Mr STREET:UAP

PAPUA AND NEW GUINEA

Joint Administration

Mr PERKINS:Minister without portfolio administering External Territories · EDEN-MONARO, NEW SOUTH WALES · UAP

SIR CHARLES MARR:PARKES, NEW SOUTH WALES

Mr PERKINS:

QUESTION

DURATION OF SESSION

Mr BARNARD:BASS, TASMANIA

Mr MENZIES:UAP

QUESTION

TINNED PLATE

Mr McEWEN:INDI, VICTORIA

Mr JOHN LAWSON:MACQUARIE, NEW SOUTH WALES · UAP

QUESTION

PRICES OF BUTCHERS’ REQUISITES

Mr GANDER:REID, NEW SOUTH WALES

Mr JOHN LAWSON:MACQUARIE, NEW SOUTH WALES · UAP

QUESTION

CONTROL OF WHEAT PRODUCTION

Mr NAIRN:PERTH, WESTERN AUSTRALIA

Sir FREDERICK STEWART:Minister for Health · PARRAMATTA, NEW SOUTH WALES · UAP

QUESTION

MINISTRY OF INFORMATION

Mr JAMES:HUNTER, NEW SOUTH WALES

Mr MENZIES:UAP

QUESTION

WHEAT PRICES

Mr GREGORY:SWAN, WESTERN AUSTRALIA

Mr MENZIES:UAP

QUESTION

AUSTRALIAN WOOL CLIP

Mr ROSEVEAR:DALLEY, NEW SOUTH WALES

Mr MENZIES:UAP

QUESTION

ITALIAN AND JAPANESE NEUTRALITY

Mr HUTCHINSON:DEAKIN, VICTORIA

Sir HENRY GULLETT:Minister for External Affairs · HENTY, VICTORIA · UAP

QUESTION

CORNSACKS AND WOOLPACKS

Mr SCULLY:GWYDIR, NEW SOUTH WALES

Mr JOHN LAWSON:MACQUARIE, NEW SOUTH WALES · UAP

QUESTION

WAR INFORMATION

Mr JENNINGS:WATSON, NEW SOUTH WALES

Mr MENZIES:UAP

QUESTION

TRACTOR WHEELS AND TIMBER FOR BOX-MAKING

Mr HOLLOWAY:MELBOURNE, VICTORIA

Mr JOHN LAWSON:MACQUARIE, NEW SOUTH WALES · UAP

AUSTRALIA AND CANADA

Appointment of High Commissioners

Mr MENZIES:Prime Minister · Kooyong · UAP

Mr ARCHIE CAMERON:BARKER, SOUTH AUSTRALIA

Mr MENZIES:

QUESTION

AIR SERVICE TO MOUNT GAMBIER

Mr ARCHIE CAMERON:

Mr FAIRBAIRN:Minister for Civil Aviation · FLINDERS, VICTORIA · UAP

QUESTION

House of Representatives
12 September 1939

Mr PRICE:
BOOTHBY, SOUTH AUSTRALIA

Mr MENZIES:
Prime Minister · KOOYONG, VICTORIA · UAP

Mr BEASLEY:
WEST SYDNEY, NEW SOUTH WALES

Mr STREET:
Minister for Defence · CORANGAMITE, VICTORIA · UAP

Mr FRANCIS:
MORETON, QUEENSLAND

Mr MENZIES:
UAP

Mr NOCK:
RIVERINA, NEW SOUTH WALES

Mr STREET:
UAP

Mr PERKINS:
Minister without portfolio administering External Territories · EDEN-MONARO, NEW SOUTH WALES · UAP

SIR CHARLES MARR:
PARKES, NEW SOUTH WALES

Mr BARNARD:
BASS, TASMANIA

Mr MENZIES:
UAP

Mr McEWEN:
INDI, VICTORIA

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

Mr GANDER:
REID, NEW SOUTH WALES

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

Mr NAIRN:
PERTH, WESTERN AUSTRALIA

Sir FREDERICK STEWART:
Minister for Health · PARRAMATTA, NEW SOUTH WALES · UAP

Mr JAMES:
HUNTER, NEW SOUTH WALES

Mr MENZIES:
UAP

Mr GREGORY:
SWAN, WESTERN AUSTRALIA

Mr MENZIES:
UAP

Mr ROSEVEAR:
DALLEY, NEW SOUTH WALES

Mr MENZIES:
UAP

Mr HUTCHINSON:
DEAKIN, VICTORIA

Sir HENRY GULLETT:
Minister for External Affairs · HENTY, VICTORIA · UAP

Mr SCULLY:
GWYDIR, NEW SOUTH WALES

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

Mr JENNINGS:
WATSON, NEW SOUTH WALES

Mr MENZIES:
UAP

Mr HOLLOWAY:
MELBOURNE, VICTORIA

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

Mr MENZIES:
Prime Minister · Kooyong · UAP

Mr ARCHIE CAMERON:
BARKER, SOUTH AUSTRALIA

Mr FAIRBAIRN:
Minister for Civil Aviation · FLINDERS, VICTORIA · UAP

Mr FAIRBAIRN:
UAP

Mr FORDE:
CAPRICORNIA, QUEENSLAND

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

Mr WARD:
EAST SYDNEY, NEW SOUTH WALES

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

Mr MAHONEY:
DENISON, TASMANIA

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

Mr FAIRBAIRN:
UAP

Sir FREDERICK STEWART:
UAP

Mr MENZIES:
UAP

Mr CLARK:
DARLING, NEW SOUTH WALES

Mr STREET:
UAP

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

Mr McHUGH:
WAKEFIELD, SOUTH AUSTRALIA

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

Mr CONELAN:
GRIFFITH, QUEENSLAND

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

Mr SPURR:
WILMOT, TASMANIA

Mr MENZIES:
UAP

Mr CASEY:
Minister for Supply and Development · CORIO, VICTORIA · UAP

Sir HENRY GULLETT:
UAP

Mr WHITE:
BALACLAVA, VICTORIA

Mr JOHN LAWSON:
MACQUARIE, NEW SOUTH WALES · UAP

Mr MENZIES:
UAP