House of Representatives
22 November 1940

16th Parliament · 1st Session



Mr. SPEAKER (Hon. W. THI. Nairn) took the chair at 10.30 a.m., and read prayers.

ENEMY RAIDER OFF FREMANTLE.

Mr. CURTIN. - Has the Minister for the Navy any information which would either establish or upset the validity of the report that ship’s in New South Wales waters on Wednesday picked up messages which, T understand, were not in code, sent out by a steamer culled Maimoa, to the effect that it was being attacked on that day by a raider some SOO or 900 miles west of Fremantle, and that it was attempting to escape at a speed of 11 knots an hour? If the right honorable gentleman has evidence establishing the correctness of this report, will he reconsider the representations that I made to his department early in August in relation to a considerable strengthening generally of the naval establishment at Fremantle?

Mr. HUGHES.- I am not able lo confirm the report to which the honorable gentleman has referred. I am aware that it has been stated that signals had been picked up to the effect that a ship was being attacked approximately 700 miles west of Fremantle. I have but. little information on the matter, and what I have I think thai 1 should not disclose. I shall be very g?ad, however, to supply the honorable gentleman wilh what I have already received and what I hope to receive during the course of today. At the first opportunity I shall discuss with the Admiralty the suggestion of the honorable gentleman for the strengthening of the naval establishment at Fremantle. I shall be glad if, meanwhile, the honorable gentleman will let me have for my guidance the suggestions that he made to the department in August.

page 118

QUESTION

LITHGOW SMALL ARMSFACTORY

Stoppage of Work

Mr FRANCIS:
MORETON, QUEENSLAND

– I ask the Minister for Labour and National Service if there has been a stoppage of work at the small arms factory at Lithgow? If so, what was the cause of the stoppage, and what special steps have been taken to ensure that the nation’s war effort in this connexion is speeded up without delay?

Mr HOLT:
Minister for Labour and National Service · FAWKNER, VICTORIA · UAP

- by leave - Following the report which appeared in the press this morning, I got in touch with the management of the small arms factory at Lithgow. I was informed that, at the moment, there are approximately 2,500 general hands out of work as the result of the dismissal at the factory of a workman named Macfarlane. The reason given to me for his dismissal was continual absence from duty. Following his dismissal, a meeting of the men at the factory was held and the decision to stop work was taken. The management offered to reinstate Mr. Macfarlane pending a decision by head office, but that offer was not accepted by the men. The Public Service Arbitrator is to proceed to Lithgow in connexion with another matter this week-end, and will be available to investigate this particular dispute. I offer to the House this comment: As honorable members are aware, the Australian Advisory War Council this week decided on certain improvements of the machinery dealing with industrial disputes. I suggest that all the machinery in the world would be incapable of dealing with stoppages of this kind, which I have no. hesitation in describing as irresponsible. Doubtless the men concerned, in acting in this way, feel that they have a particular loyalty to their colleague at the works. I. suggest that, at the present time, they have a deeper loyalty to Australia and to those Australians who are fighting in the various services overseas . The fact of the matter is that, because of the dismissal of one man by the management on the ground of continual absence from duty, 2,500 general hands are out of work at the Government’s small arms factory at Lithgow.

page 118

QUESTION

SINKING OF HM.A.S. GOORANGAI

Mr ARCHIE CAMERON:
BARKER, SOUTH AUSTRALIA

– I ask the Minister for the Navy whether certain information that he gave to this House yesterday in answer to a questionasked by the Leader of the Opposition, dealing with the disposition or proposed disposition of Australian cruisers to meet a certain contingency, which was published in the press to-day, was also broadcast?

Mr HUGHES:
Attorney-General · NORTH SYDNEY, NEW SOUTH WALES · UAP

– The statement that I made to the House yesterday was, with one exception, a statement that was given to me by the Navy Office. The exception to which I refer related to a certain ship. That exception was made as the result of information that I received from one of my colleagues, in relation to action that had been -taken by another department. The name of the ship, if itwere reported at all, was subsequently suppressed.

Mr Archie Cameron:

– I asked if the statement had been broadcast; that is all that I want to know.

Mr HUGHES:

– I cannot be held responsible for that.

Mr.Archie Cameron. - Well, somebody is responsible.

Mr HUGHES:

– On land, on the sea, and in the air, but not in the other.

Mr BEASLEY:
WEST SYDNEY, NEW SOUTH WALES

– I ask the Minister for the Navy: Was- there any reason for the censorship, or some other authority, withholding for a considerable period news of the sinking of the minesweeper Goorangai at the entrance to Port Phillip Bay, notwithstanding the fact that it was fairly widely known? Is there anything in whathas occurred which would suggest lackof co-operation between the Ministry and the department in connexion with either the release of news or the censorship?

Mr HUGHES:

– I know of no lack of co-operation between the Ministry and the department. It is very natural, and I think quite proper, that, in time of war, one should be chary of releasing information that may be of some service to the enemy. We grow wiser after events, and it is easy for us now. to say, in regard to this particular occurrence, that it had no relation to the war. I confess quite freely that I should be most reluctant to disregard the advice of the Naval Board in this matter.

Mr ARCHIE CAMERON:

– Some time before the next sitting of the House, will the Minister for the Navy supply me with an answer to my question? I wish to know whether the statement referred to was broadcast. This is not a matter of probing the ether.

Mr HUGHES:

– I thought that I had at any rate skirted round the edge of the honorable member’s question. I shall be glad to afford to him every facility for getting the information, and making any statement on the matter that further consideration might suggest to me to be advisable.

Later:

Mr HUGHES:
UAP

– I have just been informed by the Navy Department that, when the information concerning the sinking of the Goorangai was being made available to the press, a representative of the Australian Broadcasting Commission was present. In that way the information came into the possession of the Australian Broadcasting Commission.

Mr ARCHIE CAMERON:

– I ask the Minister for the Navy whether it is customary to disclose either to the press or to the wireless broadcasting authorities, information concerning the projected movements, or military missions, of ships of war? If so, when was the system introduced, and for how long is it to remain in force?

Mr HUGHES:

– I have done my best to satisfy the desire of the honorable member for information. All I can say now is that Ishall seek counsel with him and see what I can do to follow faithfully any suggestions be may make.

Mr RIORDAN:
KENNEDY, QUEENSLAND

– In connexion with the unfortunate sinking of the Goorangai in Port Phillip, I ask the Minister for the Navy how soon after the collision were lifeboats launched from Queenscliff to go to the rescue of the sinking ship, or did any boats at all put out with that object ?

Mr HUGHES:

– The Department of the Navy has reported to me that within two and a half minutes of the collision the lifeboats of the vessel which came into collision with the Goorangai were launched, and that boats also put out from Queenscliff and other parts of the mainland. I shall make further inquiries on the subject and let the honorable member have any information I receive from Melbourne bearing upon this question.

page 119

QUESTION

SHIPBUILDING CONTRACTS

Mr RIORDAN:

– On theeye of the last general elections a statement made by the Minister for the Interior was published in the Brisbane Courier-Mail of the 14th September. Itwas headed State will build £1,750,000 worth of ships,” and read -

The Minister for the Interior (Senator Foll) announced last night that ship-building contracts worth £1,750.000 had been let in Queensland, of which £1,000,000 would be expended in Brisbane.

I ask the Prime Minister whether or not it is a fact that these contracts have been let? Can the right honorable gentleman give any indication as to whether or not contracts involving an expenditure of £1,000,000 in Brisbane have been let?

Mr MENZIES:
Minister for Defence Co-ordination · KOOYONG, VICTORIA · UAP

– I have no doubt that whatever statement was made by the Minister for the Interior on that matter was correct. I cannot, at this moment, give particulars of contracts, but I shall inquire from the Department of the Navy as to what the details are, and shall make them available to the honorable member.

page 119

QUESTION

RELIEF OF RURAL PRODUCERS

Mr GUY:
WILMOT, TASMANIA

– Will the Treasurer state why, in the allocation of loan money totalling £2,750,000 on easy terms to the States for the relief of rural producers, no allocation was made in respect of Tasmania, in which State manyrural producers have suffered just as severe hardships as have rural producers in the mainland States?

Mr FADDEN:
Treasurer · DARLING DOWNS, QUEENSLAND · CP

– Tasmania is not participating in the distribution of this loan money simply because the Premier of that State told a conference of Premiers that Tasmania did not desire to participate in it.

page 119

UNSHRINKABLE. WOOL

Use of Freney Process

Mr SHEEHAN:
COOK, NEW SOUTH WALES

– Has the attention of the Prime Minister been directed to the remarkable process discovered at the

McMaster Laboratory in Sydney for the production of unshrinkable wool? In view of the fact that this process has been developed by a body subsidized by the Commonweal th Government, will the Government insist that its use be confined entirely to Australia, and not handed over to the manufacturers of Leeds and Bradford?

Mr MENZIES:
UAP

– I shall have a look into the matter raised by the honorable m ember.

Mr ABBOTT:
NEW ENGLAND, NEW SOUTH WALES

– In view of the fact that the discovery of the Freney process for avoiding shrinkage in wool, which was developed at the McMaster Institute, was largely made possible through funds subscribed by wool-growers, will the Grovernment take steps to see that the right to use this process is made available to overseas manufacturers, with a view to increasing the use of wool?

Mr MENZIES:

– As I indicated in reply to another honorable member, I shall look into that matter.

page 120

PRICE-FIXING

Effectof Budget Proposals

Mr HARRISON:
Minis ter for Trade and Customs · Wentworth · UAP

by leave - I have received the following report from the Commonwealth Prices Commissioner outlining his proposals for price adjustments thai will be necessitated by the increased customs and excise duties and increased sales tax provided in the budget : - ( 1 )No increase of prices will be permitted on goods in the hands of resellers on which sales tax and duties have been paid at the old rates. Retail tradersare obliged to maintain existing prices of these goods.

  1. When new stock isreceived on which sales tax has been paid at the higher rate, the normal gross profit margin can be added to the sales tax where the latter does not exceed 10 per cent.; that is to say. on goods subject to sales tax at 5 per cent. or 10 per cent., the cost to the retailer will include sales tax, and he will be permitted to add his normal gross profit margin to this cost. In the case of goods bearing sales tax of 15 per cent., the retailer will be permitted to add his normal gross profit margin to the manufacturing or wholesale cost, including sales tax at 10 per cent. The additional sales tax of 5 per cent. will then be added to the retail price without any charge for gross profit. This provision will be reviewed, whenever necessary,in the light of the operating costs of retail establishments and changes in their turnover.
  2. In the case of proprietary lines, an application should be made for any increase of prices on account of increased sales tax. Manufacturers of proprietary lines must not raise their prices, or vary the margins available to a retailer, without prior approval.
  3. The retail price of spirits on which new duty has been paid may be increased by1d. a nip. As regards bottled spirits, the wholesale and retail prices may be increased by the actual amount of the duty and increased sales tax, pending a conference to be held between the wholesale wine and spirit merchants and the United Licensed Victuallers’ Association of Australia and the Commonwealth Prices Commissioner on Tuesday,26th November. It is to be understood, however, that no increases are to be made of the prices of spirits in stock on which dutyand sales tax have been paid at the old rates.
  4. The increase of the price of bottled beer on account of the higher duty will be 2d. a bottle. For beer sold over the counter, the increase for thetime being will be1d. a drink, including pints and half-pints. Proposals for any other method of passing on the increased duty, such as, for example, by altering the. size of glasses, should be submitted to the Commissioner for approval before they are brought into operation. Again it is emphasized that, whether for bottled beer or for beer sold overthe counter, no increase will be permitted on goods which were in stock and on which excise has been paid at the old rate.
  5. As the profit margins in the retail tobacco trade are now under review, the increases permitted on account of higher dutyin both wholesale and retail prices will be limited to theactual amount of the added duty. A further determination will be made later when the profit margins in the retail trade have been fully considered.
  6. For the time being the increase of the retail price of matches will be limited to the actual increase of duty. In other words, retailers will be permitted to increase the price by 11/2d. a dozen on stock on which the higher duty is paid.

In presenting this report the Commissionerpointed out that the new prices would reduce gross profit margins in many cases. There was some justification for this, because the money value of turnover in the retail trade in most commodities had been higher since the outbreak of war, and in some cases traders were able to bear part of the increase of costs.

Mr CONELAN:
GRIFFITH, QUEENSLAND

– Are steps being taken by the Government to police the decisions announced regarding the sale of old and new stock?

Mr HARRISON:

– Sufficient machinery is available, and is in operation at the moment, to enable full control to be exercisedwith regard to that matter. I draw the attention of the honorable member to the fact that, notwithstanding considerable increases of the costs of commodities, retail prices during the first year of the Avar rose only 4.7 per cent. against 40 per cent. during the first year of the last war.

Mr CONELAN:

– Will the Minister for Trade and Customs explain to the House the nature of the machinery he says he has available for policing the application of prices to old and new stocks ?

Mr HARRISON:

– In regard to the specific matters to which I referred we have full knowledge of the quantities of stock that may be drawn from bond, and they will be dealt with appropriately.

Mr Beasley:

– It is not a matter of stock in bond at all.

Mr HARRISON:

– As to the subjectmatter of the honorable member’s question, he must be aware that the Queensland Government’s price-fixing machinery will be available.

Mr ROSEVEAR:
DALLEY, NEW SOUTH WALES

– Since the report of the Prices Commissioner indicates that it is intended to permit retailers to pass on the increased amount of sales tax to purchasers, I ask the Minister forTrade and Customs to indicate whether retailers will also be permitted to exact profit on the additional amount of sales tax ? Does the Government intend, as a matter of policy, to permit that course to be followed ?

Mr HARRISON:

– In order that honorable members may not labour under any misapprehension, in regard to the intentions of the Government in this matter, I propose to make a full statement upon it early next week.

page 121

QUESTION

AUSTRALIANFORCES IN THE MIDDLE EAST

Mr McCALL:
MARTIN, NEW SOUTH WALES

– The Prime Minister of Great Britain recently sent his Minister for the Army to the East, and reports were received from Mr. Eden, who investigated food and equipment problems. In view of the imminence of the battle for Egypt, and the tremendous part that Australia will play in any conflict in that area, does the Prime Minister not think that one of his Ministers, preferably the Minister for the Army, should be sent to the East, in order to investigate the conditions of the Australian forces there, to see whether everything has been done, and is being done, fully to equip and organize them?

Mr MENZIES:
UAP

– The matter of maintaining contact with the armed forces abroad is receiving constant attention by the Government, and the suggestion. made by the honorable member will be taken into consideration.

page 121

QUESTION

INVALID AND OLD-AGE PENSIONS

Mr JAMES:
HUNTER, NEW SOUTH WALES

– In view of the abnormal increase of the cost of living, and the further increase of the cost of various commodities that will result from the budget proposals, does the Treasurer intend to submit a proposal for an increase of the invalid and old-age pensions? If not, how does he expect the recipients of the pension to enjoy a reasonable standard of comfort?

Mr FADDEN:
CP

– The matter mentioned by the honorable member is entirely one of policy.

Mr BRENNAN:
BATMAN, VICTORIA

– I should like to know whether, during yesterday or at any time during this week, a member of the Governmentwas good enough to receive a deputation representative of invalid and old-age pensioners on the subject of an improvement of the conditions of pensioners? If such a deputation was received, may I be informed of the nature of the reply given to the representations made?

Mr MENZIES:
UAP

– At the request; of the Leader of the Opposition (Mr. Curtin) and the honorable member for Hindmarsh (Mr. Makin) I received a deputation on this subject yesterday afternoon. The two honorable gentlemen to whom I have referred accompanied it. I informed the deputation that the views which it submitted to me would be conveyed to my cabinet colleagues, who would give consideration to them.

page 122

UNOCCUPIED FRANCE

AUSTRLIANREPRESENTATION.

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

– Yesterday the honorable member for Barton (Mr. Evatt) inquired whether there is any direct channel of communication between the Commonwealth Government and the Government of unoccupied France. Arrangements have been made under which the Government of the United States of America will look after the interests of Australian citizens in France. The Commonwealth Government still recognizes the authority of the Vichy Government’s consular representatives in Australia.

page 122

QUESTION

ROSE BAY AIR-PORT

Mr FALSTEIN:
WATSON, NEW SOUTH WALES

– Will the Minister for Civil Aviation state whether it is a fact that mechanics at the Rose Bay airport have to sleep on their benches because they start work at such times in the morning that transport facilities are not available to them? Will the Minister give consideration to the immediate provision of quarters forthese men ?

Mr McEWEN:
Minister for Air · INDI, VICTORIA · CP

– I am unable to believe that the actual position is as has been stated by the honorable member. I shall have inquiries made and shall informthe honorable member of the position.

page 122

QUESTION

LATROBE SHALE OIL FIELDS. -

Mr GUY:

– Does the Prime Minister agree that the production of liquid fuel in Australia is highly desirable? If so, will he give consideration to the matter of approaching the Government of Tasmania, which controls the land leases, with a view to the co-operationof the Commonwealth and Tasmanian Governments in the development of the shale oil fields at Latrobe?

Mr MENZIES:
UAP

– I agree in general with the proposition submitted by the honorable member regarding the Latrobe shale oil fields. The matter will be investigated by the appropriate department.

page 122

QUESTION

MILITARY BLANKETS

Mr WARD:
EAST SYDNEY, NEW SOUTH WALES

– Will the Minister for Trade and Customs state whether it is a fact that, at the outbreak of the war, Richard Allen and Sons Proprietary Limited, a Melbourne firm, bought up all available supplies of blankets, and, in a few weeks, disposed of them to the Commonwealth Government at a profit of 10 per cent.?

Mr HARRISON:
UAP

– I am not aware of the matter referred to by the honorable member, but I shall have inquiry made regarding it.

page 122

QUESTION

REPAIRS TO MILITARY BOOTS

Mr JAMES:

– Will the Minister for the Army inform me whether it is a fact that boot” repairs for troops in various military camps extending from Greta, in the coal-fields districts, and through Maitland to the Queensland border, are all sent to one big firm in Sydney? Does not the Minister consider that it would be fair to give opportunities to local boot repairers, adjacent to the various camps, to tender for boot repair work?

Mr SPENDER:
Minister for the Army · WARRINGAH, NEW SOUTH WALES · UAP

– As a matter of principle I would say that the nearer to the camps that the boot repair work can be done the better it would be. All such local services should be tapped. I am not aware of the details in relation to the districts mentioned by the honorable member.

Mr JAMES:

– I wrote to the Department of the Army on this matter before the honorable gentleman assumed his present office.

Mr SPENDER:

– I shall have inquiries made into the subject, and furnish the honorable member with a reply later.

page 122

QUESTION

DEFENCE EQUIPMENT

Manufacture in Rural Districts.

Mr WILSON:
WIMMERA, VICTORIA

– I ask the Minister representing the Minister for Supply and Development whether any survey or investigation has been made of the availability of precision machinery and other suitable plant in rural areas, or areas removed from vulnerable places near the seaboard, for the manufacture of units of equipment essential to our defence programme ?

Mr SPENDER:
UAP

– I shall discuss with my colleague the subject-matter of the honorable member’s question, and. supply him with an answer as soon as practicable.

page 123

QUESTION

SECRET SITTINGS OF PARLIAMENT

Mr FALSTEIN:

– I ask the Prime Minister whether it is the intention of. the Government to hold any secret sittings of Parliament in the near future, in order that honorable members may he kept informed concerning Australia’s war effort and the war outlook?

Mr MENZIES:
UAP

– I cannot answer the honorable member’s question at the moment, ‘.but if it/ is decided to hold such meetings of Parliament due notice of them will be given.

page 123

QUESTION

WAR AIMS

Mr BRENNAN:

– As no recent statement has been made with reference to our war aims, in the light of changing circumstances, I ask the Prime Ministerto be good enough to say whether he is prepared to adopt the summary made by Mr. Bevin, a member of the British War Cabinet, who is reported to have stated that “The motive of our life should be social security. “

Mr MENZIES:
UAP

– As a statement of the ultimate amb iti on of all who are living a civilized life, I think it is quite admirable.

page 123

QUESTION

DEFENCE FORCES AT DARWIN

Mr WARD:

– Will the Minister for the Army inform me whether it is intended to pay members of the home defence forces serving at Darwin, and in other appropriate Commonwealth territory, the usual tropical allowance? I should also like to know whether such personnel will receive deferred pay at similar rates to those which apply to tho members of the Australian Imperial Force and whether the provisions of the Repatriation Act will also apply to such forces ?

Mr SPENDER:
UAP

– The conditions that are to apply in respect of the forces at Darwin are presently being, considered by me. I shall furnish the honorable member with information on the subject as soon as it is available.

page 123

QUESTION

WHEAT CHARTERS

Sir CHARLES MARR:
PARKES, NEW SOUTH WALES

– Will the Minister for Commerce inform, mc whether it is a fact that a vessel known as the Braddal was chartered prior to the war, and had -been engaged by the Westralian Farmers Union for a. considerable number of years, for considerably less than 10s. per deadweight ton? Since Mr. Thompson, of the Westralian Farmers Union, has been appointed manager of the Australian Wheat Pool has the 9ame boat been put under charter to the Commonwealth Government at a rate of 30s. per ton deadweight to carry wheat? Is the vessel showing £100,000 profit per annum under the new arrangement? Will the Minister furnish. mc with all particulars in connexion with the matter?

Sir EARLE PAGE:
Minister for Commerce · COWPER, NEW SOUTH WALES · CP

– I shall makeinquiries to see whether there is any truth in the report.

page 123

QUESTION

HOBART-SYDNEY PASSENGER ACCOMMODATION

Mr FROST:
FRANKLIN, TASMANIA

– Will the Minister for Commerce inform me whether the Government intends to make a passenger boat, such as the Zealandia, or some similar vessel, available for the passenger trade between Hobart and Brisbane during the coming summer season?

Sir EARLE PAGE:
CP

– That subject is receiving consideration.

page 123

QUESTION

WOOL APPRAISEMENT

Mr RIORDAN:

– On the eve of the recent general elections it was announced that a wool appraisement centre would l)e established at Townsville. Will the Minister for Commerce inform me what steps have been taken to fulfil that promise, and when the first appraisement at Townsville is likely to be made?

Sir EARLE PAGE:
CP

– The conditions under which an appraisement centre would be established at Townsville were stated at the time the inquiry was made. I shall take steps to ascertain what progress has been made in connexion with the matter.

page 123

QUESTION

INDUSTRIAL PEACE ACT

Mr JAMES:

– In view of the discontent prevailing in the coal-mining industry as the result of anomalies in the award recently made for the industry by Judge Drake-Brockman, who does not really understand the industry, I ask the Prime Minister whether the Government has yet given considerationto the request made repeatedly by the miners themselves, and by me in this House, to apply the provisions of the Industrial Peace Act? As many disputes were obviated under that legislation in the past,the miners have every confidence in its provisions, which could again be applied by regulation.

Mr MENZIES:
UAP

– The matter referred to by the honorable member was, I understand, the subject of a deputation from himself and others, which waited upon my. colleague, the Minister for Labour, a couple of days ago. My colleague proposes to bring the representations then made to him before the Cabinet, but, of course, he has not yet had an opportunity to do so.

page 124

QUESTION

PREVENTION OF PROFITEERING

Mr WARD:

– Has the Minister for External Affairs been correctly reported in the press as having said that while he was Minister for Supply and Development he had been responsible for saving this country an amount of £500,000 by preventing cases of profiteering? If so, has he reported those cases to the Government; what action does the Government propose to take against the firms involved, and when may we expect a statement disclosing the names of such firms?

Sir FREDERICK STEWART:
UAP

– As Minister for Supply and Development, I did my best to protect the interests of the taxpayers of Australia, and, if I may say so, I did that work not unsuccessfully. Several cases of the kind referred to by the honorable member have already been before the House, and I do not think that any good purpose could be served by resurrecting such matters at this juncture.

page 124

RETURN OF MINISTER FOR COMMERCE TO CABINET

Mr WARD:

– Some months ago, after he had leftthe Cabinet, the Minister for Commerce said that he would never again sit in a cabinet under the leadership of the present Prime Minister. I should like to know the particular reasons which actuated the Minister in changinghis mind on this matter.

Sir EARLE PAGE:
CP

– I have never made a statement to that effect. The statement I made is on record in this House; and the reason why I am at present in the Government is in order to do my best to ensure that Australia will make its maximum effort for victory.

page 124

TEMPORARY CHAIRMEN OF COMMITTEES

Mr. SPEAKER laid on the table his warrant, nominating Mr. Badman, Mr. Guy, Mr. Makin, Mr. Martens, Mr. Rankin, Mr. Rosevear, Mr. Stacey and Mr. Watkins to act as Temporary Chairmen of Committees when requested so to do by the Chairman of Committees.

page 124

ACTING DEPUTY SPEAKER

Motion (by Mr. Menzies) - by leave - agreed to -

That during the unavoidable absence of Mr. Deputy Speaker, Mr. Speaker be authorized to call upon any of, the Temporary Chairmen of Committees to relieve him temporarily in the chair.

page 124

HOUR OF MEETING

Motion (by Mr. Menzies) - by leave - agreed to -

That the House, at its rising, adjourn until Wednesday next at 3 p.m.

page 124

QUESTION

GOVERNOR-GENERAL’S SPEECH

Address-in-Reply.

Debate resumed from the 21st November (vide page 77), on motion by Mr. Beck -

That the following Address-in-Reply to His Excellency the Governor-General’s Speech be agreed to -

May It PleaseYour Excellency:

We, the House of Representatives of the Parliament of the Commonwealth of Australia, in Parliament assembled desire to express our loyalty to our Most Gracious Sovereign and to thank Your Excellency for the Speech which you have been pleased to address to Parliament.

Mr EVATT:
Barton

.- I esteem it a very great honour to be chosen in this time of unparalleled emergency as a member of the national Parliament of Australia. At the outset of the war. I felt, in common with most Australians, that the future of all of us was dependent upon two tilings; first, the outcome of the war; and, secondly - associated with the first - the kind of society which should follow the war. Ever since the outbreak of war I felt it my duty to assist in Australia’s war effort, and to prepare, so far as I was able, to assist in what might be called the peace effort; And, ultimately, I felt that I could, perhaps, most directly help to achieve those aims by seeking election to this Parliament. I hope that honorable members will place that construction on what I have done. That was my sole object, and I believe that irrespective of party politics, the majority of my fellow citizens will, accept that view of what I did.

There exists, perhaps, a slight atmosphere of unreality about this debate on the Address-in-Reply. At this moment, when our kinsmen in England are suffering such unspeakable horrors, and when Australia itself is in such im mimen t peril, it is difficult to focus attention upon the Governor-General’s Speech, although, of course, some matters must be discussed. The peril of our position has also been brought home to us through the budget speech delivered yesterday by the Treasurer (.Mr. .Fadden), when he indicated the enormous burden which the people of Australia must accept in connexion with our war effort. So far as this House is concerned, everything is, for the moment, dependent upon the budgetary proposals. They are not only important in themselves ‘but may also determine for generations the distribution of wealth in this country, and its future financial policy. By comparison to the budget the discussion on this motion seems therefore unimportant.

I feel sure that both the mover and seconder of the Address-in-Reply appreciate what I have just said. As the first speaker to the motion on this side of the House, I understand that it is my duty to congratulate both of those honorable members. That I do, although I am as new to this House as either of those honorable gentlemen. The honorable member for Denison (Mr. Beck) in moving the motion indicated to some degree- what I have just said myself. I could not quite follow his references to the voting in New South Wales. Whilst

I do not desire to re-hash the election returns, I point out. that he has forgotten that- in the three great eastern States - New South. Wales, Victoria, and. Queensland - the - Government actually lost seven seats and gained none. It should not be a question, therefore, of upbraiding New South Wales for what that .State failed to do. I do not propose to mention even the name of New South Wales as an entity. In all great crises in the past, New South Wales has acted a3 a portion of Australia; the very heart of Australia is in New South Wales, and in the -great centres of that State our war effort i3 being prosecuted with remarkable success. All honorable members, I think, will agree with me on that point,

I congratulate particularly the honorable member for New England- (Mr. Abbott) on the spirit shown in portion of his remarks. The honorable member enjoys a great reputation in New South Wales as a Liberal. He is a man of Liberal views, and I look forward to his acting upon those views while he is a member of this House. He has taken a great interest in the welfare, not only of the primary producers, but also of the industrial workers. However, in the past, the party with which he is associated has rather emphasized the differences between those two great sections of the Austraiian community. This fact is apparent when we examine some of the more important schemes which have been sponsored by the Country party. The intention behind many of those schemes has been excellent. “Great primary industries have been assisted and bounties have been provided to encourage production in those industries.- Unfortunately, however, the method by which those industries have been assisted has often involved in direct charges upon the industrial workers, who form a great section of the Australian consumers. Everybody realizes, and none more so than the industrial workers themselves, that the need for assisting primary production is paramount. But, I suggest, it may often be advisable to assist the primary producers by means of direct grants from Consolidated Revenue, rather than through imposts which must be borne by that section of the community which is the leas*t able to boar them. Often the bounty provided to assist primary producers is reflected in the price of the marketed product with the result that the consumption of that product by the industrial workers is seriously diminished and this originates many economic difficulties. I sincerely hope, therefore, that the honorable member for New England may, upon consideration, agree with the view I have just expressed.

I also commend the honorable member for his insistence upon the duty of this House to make the Parliament workable. He has emphasized that duty. On this point, I shall quote the resolution adopted by the Labour party as recently as the 14th October last. In that resolution my party expressed - its resolute determination to strengthen the wareffort of the Australian nation, and to ensure that Parliament as elected by the people shall be enabled to carry on effectively, particularly during the present grave and perilous situation; and with that end in view it invites the co-operation of all other parties, and all members of the Parliament.

  1. That it is also of the opinion that as an essential part of the war effort, steps should bo taken to put into effect the substantial aims of Labour’s policy as announced by its leader. Mr. John Curtin.

Whether or not, during the present grave crisis, this Parliament, is to be made workable, depends entirely upon the resolution of members themselves, and, particularly, upon members of this House. Certain consequential principles must be acted upon if that aim is to be achieved. One of those principles is that it is wrong to claim that, if the present Government be defeated in this House, there will, by some direct and inescapable law, be a termination of the life of the Parliament. I know that no such claim has been openly advanced on behalf of Ministers. None the less, suggestions to that effect, have been put forward, and such suggestions, I believe, are calculated to interfere with the freedom of honorable members in considering what is in the interest of the Commonwealth of Australia. It is wrong to make those suggestions. There is no such absolute rule; everything depends upon the circumstances. Certainly the House of Commons once resolved in a great constitutional crisis that it was wrong and highly unconstitutional that in relation to the vote of members of an assembly such as this, the threat of dissolution should be used against the members of the House of Commons. That was simply a declaration of practice. It is common seme; but it applies very much to the present position here when the parties are in such perfect equipoise on the floor of this House. It is clear, too, and I think we all recognize it, that if without reasonable cause or excuse the people are again confronted with the task of electing a Parliament, they will visit their anger and indignation upon those who are responsible. I also think - and perhaps thisis the most important aspect of it. - that at this time, when parliamentary democracy itself is on trial, unless this House makes itself fit to carry on the government of the country during the next three years there will be grave danger of other institutions supplanting the institutions of parliamentary democracy. Another consequence which flows from the statement of the honorable member for New England that this House in particular should be made to work, should be made efficient, is that this House must, so far as is reasonably practicable, control the general course of the executive government of the Commonwealth. I do not suggest for a moment that this House can ever supplant the executive government and the Ministers in their duty of administration, especially in time of war; but in time of

Avar, in time of emergency, new methods must be devised, and it maybemade possible for those who have the tremendous burden of office to be relieved of the actual duty of attendance in the House. It does not followthat Ministers should be present on every occasion when the House meets. There may be possibilities in that suggestion which should be explored. We are adopting new methods. We have adopted the recent experiment of an advisory Avar council, an experiment of which it is too early yet to speak confidently, butwhich is undoubtedly unique in the parliamentary history of this country. In times of emergency surely the old couplet applies -

For forms of government let fools contest, Whate’er is best administered is best.

I regard the problem of administration as the crucial problem of the Avar effort.

I think we are too apt to assume that administration is easy, aird that those who are not specially trained for it will be able to succeed in the task. That is not true. The administrator is a technician ; he must have great gifts to be a successful administrator. He must know the principle which he desires to apply; he must have imagination to visualize the various possibilities which may occur, and. courage to carry out his decision in the face of hostile criticism. He must have industry, must be willing to accept responsibility for his decision and must have the courage to withdraw from a decision when he sees that it is wrong. In a democracy there are other duties which must be carried out by a great adminis-tra tor. He has not only to administer successfully but also to explain to the people the course of his administration and to secure their confidence. He has to satisfy the people and explain to them carefully why he is acting, not of course going into detail unnecessarily, and how to face overwhelming difficulties in time of war. For that reason the locality at which, the administration acts is very important. It is often essential to an efficient administration that it should be centred at a particular place.

I do not wish, especially at this time, to raise any interstate jealousy, but I am impelled to say that under our constitutional system the seat of government of the Commonwealth should be at Canberra. That means, not merely that Parliament should sit here from time to time, but that, as far as is reasonably practicable, Ministers should be here also.

Mr Barnard:

– The Menzies Government has run away from it.

Mr EVATT:

– I do not wish to go into the details of it. I merely say that we should restore the seat of government to its rightful place under our constitutional system, not merely because it is a pact, because it is a part of the Constitution, but also because in the long run there will be greater efficiency and the Ministers will not have the hurden of frequent travelling cast upon their other numerous duties.

I suggest the desirability of the prn.c.tice of Ministers exploiting and exploring the avenue of administration already opened by the State public services and the local government services of the Commonwealth, lt is perfectly plain that in certain respects the States have been fortunate enough to train administrators over a very long period. The Premier of New South Wales has offered the services of the whole of the public servants of the State to the Commonwealth during the war. I know that it is difficult to add new men to a service already overburdened, but the Government has already acted in very important respects. It has introduced into the Commonwealth the new policy of including in its administrative system great heads and executives of private corpora-ti ons, men who, no doubt, in their’ own fields, have no superior in. the Commonwealth ; but in the States there is still a great untapped reservoir of administrators available. I could give the names of persons who could assist the Government in its war effort, but it would be of no importance now.

There is very little I can say in detail about the speech prepared by Ministers for His Excellency the Governor-General. The reference to the war was, I think, perhaps stated somewhat overoptimistically. We should be prepared for worse things than we have been facing. However, I do not wish to dwell on that because I know there is a real difficulty. Optimism is condemned as complacency and pessimism is condemned as defeatism. Somehow or other the Government must take the line between the two, and every attempt should be made to do so because the people of this country want to be told the truth about all these great matters.

One reference in the GovernorGeneral’s Speech, to which some objection will be taken on the ground that it is unreasonably provocative, is that relating to stoppages of work. I do not believe that the Governor-General’s Speech is the proper vehicle to deal with this problem. The Minister for Labour and National Service (Mr. Holt) made a similar reference to-day. With respect to the honorable gentleman, I suggest that the proper place to deal with such matters and to apportion praise and blame is in the industry itself. Let the honorable gentleman go to the great munitions works and get into contact with the men themselves. No doubt he will have many intermediaries, but there is no real substitute for that. In his Speech His Excellency said that the Government feels strongly that, in a country in which there is “ adequate “ and “ accessible “ machinery for the settlement of disputes and the adjustment of grievances there can be no justification for direct action.

Mr Blackburn:

– The Government assumes that there is adequate and accessible machinery for this purpose.

Mr EVATT:

– At present I do not think that there is. The events of the last few weeks have shown that members of Parliament and trade union secretaries have had to use their best endeavours to prevent stoppage after stoppage. One honorable member on this side of the House seems to be so occupied in settling these disputes that he might be made a general pacificator of industrial disputes and stoppages ! That shows the need for new machinery to be set up, and, I understand, that the Government proposes to act. The question of industrial arbitration and the machinery for settling industrial disputes and grievances is a very great one. The original scheme was that industrial tribunals should be set up with the object of greatly ameliorating the lot of the industrial worker and of improving his standard of living. At the outset great industrial jurists like Mr. Justice Higgins in the Commonwealth and Mr. Justice Hayden in New South Wales commenced the establishment of the system of industrial arbitration, but unfortunately, some of the ideals of that system have not been put into execution. There has been no improvement to any great degree of the standard of living of the industrial worker since 1907 when Mr. Justice Higgins enunciated his famous Harvester wage. The latest figures suggest that the standard of the basic wage worker is a trifle lower now than it was then - at any rate itis not higher. It would be necessary to institute an inquiry to determine exactly the difference between the two standards. The failure of the industrial worker to improve his lot has lead to disillusion and to discontent with the arbitration system. It has been said that the words in our Constitution which provide that the Commonwealth Parliament shall have power to make laws with respect to conciliation and arbitration for the settlement of industrial disputes extending beyond the limits of one State, have cost a King’s ransom. Litigation has ensued, appeals have been made to courts of law, and rules have been made, but we are as far as ever from the ideal of peace in industry. These things, however, need not be discussed here because, whatever limitations may exist in time of peace, during a time of war it is perfectly clear that, the fact that a dispute does not extend beyond the limits of one State is no bar to the Commonwealth acting. The Commonwealth Parliament may prescribe any method of settling a dispute and, further, the Commonwealth Parliament or the Executive may by regulation fix hours, wages and conditions to be observed in industry. I suggest for the consideration of the Ministry that when the new scheme is brought forward it should take the form of legislation passed by the Parliament rather than a regulation made under the National Security Act. If that be clone those members of this House who have had long experience of these matters - and there are many of them - will be able to assist the Government and the people with the benefit of their advice. During recent years there has been a movement in favour of more conciliation in industrial disputes. It is thought, by many that the trappings which are associated with courts of law are apt, to embitter the parties, and that better results would accrue from conciliation. The Scullin Government set up a number of conciliation committees with the object of ensuring greater harmony in industry, but unfortunately its attempt failed because of a legal ruling. The Government would do well to study the draft legislation which was then prepared, with a view to more prompt and successful dealing with disputes. Let us avoid recrimination. There is always some reason for an industrial dispute,and it can be found if search is made for it. But. the search requires men who know the industry and the particular job on which the dispute takes place. If care be taken in this direction I believe that we might inaugurate a new era of industrial justice and peace in this country.

My observations convince me that there is, at the present moment, a great deal of unrest among not only the industrial workers of Australia but also the people generally. It is difficult to say exactly what are theca uses of that unrest. Political considerations may contribute to it, but, in my opinion, we must go deeper if we would find the real causes. I believe that the people have been impressed enormously by the fact that, although in times of emergency money and credit can be found to prosecute a war - and it is necessary to do so - no similar action is taken to deal with social problems in times of peace. The people are puzzled and anxious about the matter. I believe that they are anxious for the establishment of what is sometimes described as a new social order, or social justice - terms which indicate that they are attempting to examine the foundations of things. The people have not been given the things that they were promised during the previous war. Between 1914 and 1918,the Commonwealth borrowed, and borrowed, and borrowed money, and the trading banks lent, and lent, and lent money, until at the end of the war there was an enormous public debt; and ever since then the public finances have had to suffer. Then, definite promises were made. The Treaty of Versailles promised a new social order which would give social justice to all. An International Labour Organization was set up in order to establish better labour conditions throughout the world. Unfortunately, it has not proved a pronounced success. Many of the Geneva conventions have not been given effect by the Commonwealth Government. There has always been some excuse for the failure to do so ; the Commonwealth has said that these conventions were matters for the States, and the States have replied that they were matters for the Commonwealth. Whoever was responsible, the fact remains that failure to give effect to such conventions has caused the people to despair. After the Avar, the first depression came. Itwas followed by something in the shape of a recovery. Then later therewas the economic collapse of 1931-32.. And whenwool andwheat prices improved the international outlook became much more unfavourable. Then followedwhat has been fairly accurately described as a policy of piecemeal appeasement. That policy has failed. It has been suggested that the policy was adopted merely in order to gain time to prepare for Avar; but I regret to say thatwhenwar eventually did break out England was relatively unprepared.

We hope that, in spite of such disappointment and disillusionment, victory will soon beachieved, and that, after thewar, therewill be greater social security. If the post-war orderis to hold more worth-while things for the people of Australia it is necessary that steps be takennow to prepare for the future. Notwithstanding the present dark days I believe inthe future of Australia as I am reminded of thewords of the poet Wordsworth who, in 1804, when Englandwas in a position almost comparable to that of to-day, wrote -

It is not to be thought of that the flood Of British freedom, which, to the open sea Of the world’s praise, from dark antiquity Hath flowed.

Should perish; and to evil and to good

Be lost for ever. In our halls is hung Armoury of the invincible knights of old:

We must be free or die, who speak the tongue

That Shakespeare spake; the faith and morals hold

Which Milton held. In every thingwe are sprung

Of Earth’s first blood, have titles manifold.

Mr FALSTEIN:
Watson

.- Although it is a tradition of this House to discuss, in the debate on the AddressinReply, matters other than those mentioned in the Governor-General’s Speech, I ask the indulgence of honorable memberswhile I deal with at least two of the matters mentioned by His Excellency. 1 refer, first, to the optimism of the Government as to the outcome, of the Avar effort, both at home and abroad. It seems to me that the improvement overseas has been offset by theworsening of the war position in Australia. It should not be necessary for me to remind honorable members of the tragedieswhich have occurred recently off the Australian coast. We on this side of the House are not satisfied that the Government is doing, everything in its power to prevent a repetition of such tragedies. I regard the reference in the Speech to the war position as being over-optimistic.

The Speech also refers to the contribution which Australia is making to the maintenance, of peace by the appointment of diplomatic; representatives to selected Pacific countries. Why has the Government confined the making of such appointments to certain selected countries, and- why have Ministers not been appointed to other countries with interests in the Pacific, such as China and Russia t These two powers are neutral in the present war with Germany– and are as much entitled to diplomatic representation as are Japan and the United States of’ America.

Before proceeding further with the matters contained in the Speech, I desire to compliment the mover and the seconder, of the Address-in-Reply on their speeches. The latter- advanced able arguments in favour of a national government. In relation to that matter, may I say that I agree entirely with the honorable member for Barton (Mr. Evatt) that a defeat of the Government on the floor of the House would not justify the assumption that the life of the Parliament itself would thereby necessarily be terminated. I regard that as wishful thinking on the part of certain persons, and something which is not worthy of the consideration of this Parliament. Should another appeal be made to the electors, I am confident that Labour would win two additional- seats in New South Wales. I refer to Hume and Robertson. Honorable” members opposite will not dispute that prophecy. It is almost a fundamental condition of democracy that, in the interests of good government, no political party should remain in power for too long a period. Had the press in the other States expressed its mind as freely as did the press of New South Wales, the Government would have been defeated in those States also. Only the political censorship of the press in the other- States and the flood of propaganda which was circulated on behalf of the Government parties enabled the Menzies Government to avoid being swept from the treasury bench.

In accusing the Government of insincerity, I realize that no more serious charge could be laid against it. The Prime Minister (Mr. Menzies) has said that profiteering is contemptible and unpatriotic; but he described strikes as traitorous and tantamount to a declaration of war on Australia. That statement proves beyond all doubt that the Prime Minister is completely out of step with the people of Australia. If the Government denies the charge of insincerity, I ask it to say in what way the Industries Preservation Act has been used against the combines and monopolies of this country, and to what degree its provisions will be enforced in the future. I ask also that the penalties for profiteering provided” by that act shall be removed and a heavy gaol sentence substituted. If the Government were sincere it would agree to the proposal that Parliament be called together within fourteen da..ys after a quorum of the House- has invited the Prime Minister to assemble it. In that way private members would have some power to’ determine when Parliament should meet, so that matters affecting the people generally, and their constituents particularly, might be discussed. I have suffered, as has the honorable member for East Sydney (Mr. Ward), from the fact that no opportunity is provided during parliamentary recess for members of the Opposition to reply effectively to statements made by members of. the Government. Unless Parliament meets frequently, democracy cannot function properly.

Mr CALWELL:
MELBOURNE, VICTORIA

– During the French. Revolution Parliament sat continuously.

Mr FALSTEIN:

– The “ honorable member refers to France. The honorable member for New England (Mr. Abbott) stated- that when he was in France in October, 1938, he found what he described as “a house divided”. The position in France at that time and subsequently may not be known to honorable members on the Government side of the House, but it is quite ‘ clear what happened. Immediately a reactionary government took the place of the Socialist government which had concluded a pact with Soviet Russia. it began to smash every workingclass organization in the country. France’s military defeat is due to one thing only - the breaking- of the hearts of the workers by the government. If the present Commonwealth Government occupies the treasury bench much longer it too will break the hearts of the workers in Australia. No one has more patriotism than the ordinary Australian people who do the hard toil, notwithstanding that members of the Government sometimes seek to claim a monopoly of patriotism for themselves. Those members should realize that, though they .may ki directors of commercial monopolies, they have no claim to a monopoly of patriotism, which is an indivisible part of every man and woman born in Australia.

I shall pass now to another matter. Reference has been made to the desirability of restoring the seat of government to the place demanded by the Constitution, that is,, to Canberra. It is a remarkable thing that in Victoria unemployment amounts to only 6 per cent., whereas in New South Wales it is 16 per cent. Moreover, practically all persons engaged in munitions work in New South Wales, are skilled workers, whereas in Victoria unskilled workers are being absorbed in ever-increasing, numbers. In New South Wales, no fewer than 100,000 persons are dependent on the Government for food relief or relief work. The great majority of persons registered as unemployed are unskilled, and avenues of employment should be opened up for them. Despite the fact that a great many soldiers have already gone overseas, and that there are S0,000 men undergoing military training in Australia, there has been no decline of unemployment in New South Wales: I ask the Government to demonstrate its sincerity by allowing New South Wales to take a larger share in our common war activities than has been the case in the past. In particular, manufacturers in New South Wales complain that 90 per cent, of all war contracts go to Melbourne manufacturers. That is a further indication of the unfairness of having government activities centralized in Melbourne. , I have no desire to fan the old rivalry between Sydney and Melbourne, but I cannot refrain from pointing out that there is at present a serious anomaly which should be corrected, and that there exist genuine grievances which should be remedied.

Yesterday, the Minister for Labour and National Service (Mr. Holt) said that he hoped that, before any strike took place, those who wore likely to strike would approach him with their complaint. He did not suggest that the employers, for their part, should also approach him’ beforehand ‘in the event of an industrial dispute. Thus, he asks workers to do something which he does not require the employers to do. If he really desires the co-operation of the workers he must demand similar cooperation from the employers.

The system of petrol rationing introduced by the Government has dealt a terrible blow at the very vitals of this’ country’s industrial organization. I cannot believe that there was ever any need for petrol rationing. The Governor-General’s Speech contains no reference to the subject, which is one of the very greatest importance. Petrol rationing has deprived many small business men of the means of earning a livelihood. Whereas, before its introduction, they were earning a, decent living, they are now merely eking out a bare existence. This applies particularly to butchers, milkmen, bakers, &c, who depend upon petrol-driven vehicles for the delivery of goods. As one result of petrol rationing, business conditions have become chaotic. Many persons who had invested their, small capital in garages are now unemployed and drawing the dole. I maintain that the Government is not sincere in its policy of rationing petrol at the present time. There are many substitutes for petrol which could have been developed, but the Government took no steps in this direction. Honorable members will recall that the Government’s first proposal was so to increase the price of petrol that individual consumers would be forced to ration themselves. That system, of course, would not affect theman with a large income, who would still be able to take his week-end trips,’ but it would affect most adversely the man on a small income. Now we find that in less than twelve months the price of petrol has increased from ls. 8d. a gallon to 2s. 4d. a gallon in capital cities,” and it is still rising. Though the Government declared that it had jettisoned its original proposal to increase the price of petrol, it has, in fact, applied that policy with disastrous results.

Although the Governor-General’s Speech is supposed to contain a precis of forthcoming legislation, there is nothing in it to indicate that the Government has;- prepared a programme of social legislation. Any Government which ignores the crying needs of the people, and - concentrates upon abstract matters while neglecting the vital problems of life as they affect the ordinary man, merits the gravest censure. The absence of such a necessary social programme is indicative of the Government’s moral ‘bankruptcy.

In conclusion, let me say that, while 1 believe that this Parliament will prove workable without the need of a general election, nevertheless, should such an election eventuate, I for one would welcome it.

Mr LANGTRY:
Riverina

.- I regard it as a great honour to be standing here in this Parliament as the representative of the electorate of Riverina, an electorate the real interests of which have been so long neglected. I recognize that I, like every other member of this House, must bear a great responsibility in the days ahead of us. We are facing the most serious crisis in the history of Australia and of the British Empire. I have not the slightest doubt of how the war will end, and during its progress the great Australian Labour party will leave no stone unturned to achieve victory as quickly as possible, and with the least distress to the people. The question has been asked: Where does the Australian Labour party stand on the Avar issue? The Labour party stands where it has always stood - four-square in its support of the British Empire. The Labour party will exert every effort in its power to bring the war to a successful conclusion. The struggle will be won by the workers in the munitions factories and in the fighting services, whom the great Labour movement in the past advised to prepare for this crisis. Now that the hour has struck, the Labour party will not be found wanting.

Undoubtedly, we are confronted with troublous and strenuous times. One of our greatest difficulties, apart from the war, is the problem of unemployment, which is closely associated with the hazardous condition of our great primary industries. As a representative of the second biggest primary industry in New South Wales, I contend emphatically that the wheatgrowers have been let down badly in the past. The accuracy of that statement no one will venture to deny. The wheat-growing industry is now at the. lowest ebb in its history. For twenty years grow-ers have been promised by successive governments that the industry would be stabilized, but nothing practical has ever been clone. In fact, cold water has been thrown upon every suggestion put forward by the Labour party to achieve this objective. During the” recent federal election campaign, however, primary producers realised that they could expect no relief from a government representing United Australia party and United Country party interests, with the result that the two greatest constituencies representing, primary industries fell to the Labourparty. That indicates plainly that the man on the land is beginning to recognize who are his true friends, and whoare not, Although some effort to stabilize the industry has been made since the elections, we have not gone far enough, and the relief to be extended to the industry under the latest proposals will not come into operation for twelve months. I cannot stress too earnestly the desperate position of the growers. In my electorate last year, the harvest totalled’ 14,000,000 bushels; this year the crops will yield only 4,000,000 bushels. Returns from other wheat-growing areas report a similar contraction. Those figures should impress upon, honorable members the necessity for making an immediate payment in order to tide fanners over one of the worst periods which have ever been experienced in the history of the industry. In severity, the present drought is equalled only by the terrible, drought of 1902. Hundreds of thousands of acres this year will not yield one bushel of wheat, while in many districts farmers will be lucky if the harvest is sufficient to supply their requirements of seed wheat for the next season.. In view of. those circumstances, I desire to impress upon the Minister for Commerce (Sir Earle Page) the urgent need for making a further advance to farmers of at least 6d. a bushel in respect of last year’s wheat.

I also desire to bring under the notice of the right honorable gentleman the unfairness, in one respect, of the new wheat stabilization plan, which provides for the payment to farmers of 3s. 10d. a bushel at ports. In my opinion, the payment should be made on the wheat when it is delivered at country sidings, because freight charges vary in all States. By virtue of regulations issued under the National Security Act, the Federal Government has commandeered all wheat produced in Australia. As the Commonwealth owns the grain as soon as it is delivered to the siding, the farmer’s responsibility should end there, and handling charges, freight, &c, should be met by the Wheat Board. Every wheatgrower in every State should receive the same return for every bushel that he produces. In asking the Minister for Commerce to reconsider that portion of the plan, I am not making an unreasonable request. Even in the electorate of Riverina, freight charges in respect of wheat vary by Id. or 1 1/4 d. a bushel, and that is most unfair to the growers who live a considerable distance from a’ seaport. The Country party, particularly, should bring pressure to bear upon the Government in order to rectify this obvious anomaly, and it should insist upon the payment to farmers of a uniform price. Honorable members should realise that the price for wheat lias not yet overtaken the cost of production, -and the growers are rightly entitled to this consideration. They ask for nothing more than the right to live and to receive a reasonable return from the production of a commodity which represents, perhaps, our greatest national undertaking.

The secondary industries have as much to gain as the grower himself from the payment of a profitable price for wheat. The manufacturers of fertilizers and machinery, the State railways systems and many other undertakings which employ large numbers of men, depend for a big percentage of their revenue upon the wheat-grower. Honorable members have only to cast their minds back to the economic .crash which occurred in 1931, when wheat was practically unsaleable and the greatest industrial stagnation in the history of Australia occurred. Unemployment, poverty and’ destitution were rife, and foreclosures were reported from all parts of the country.1 Australia has not yet recovered from the effects of that crash. When the Scullin Government introduced legislation’ to authorize the payment to the primary producer of 4s. a bushel, the bill was rejected by the Senate, in which the Country party held the balance of power. That is what I desire to drive home to the public. I should like wheat-growers to realize that the Labour party, which was their true friend in the past, will also be their friend in the future. We have demonstrated repeatedly, by our deeds, our concern for their welfare. Somehonorable members might contend that the south-western portion of New South Wales, which I represent, is an area in which the rainfall is poorer than it is in the better wheat-growing districts. But even wheatgrowers in . parts of Australia with a reliable rainfall are in a desperate plight this year. Although the Wimmera in Victoria has a greater yield to the acre than has any other district in Australia, the plight of growers in that area is just as serious as is the position of farmers in the southwestern portion of New South Wales. In making that statement, I do not refer to the extreme south-west, because we should not be attempting to grow wheat there. Generally, however, all wheatgrowing district, good and bad alike, are in the same position this season. In plain words, the industry is “ down and out “. I ask the Minister for Commerce to lose no time in making the advance that I suggested ; otherwise the desperate plight of the wheat-grower will have repercussions in man’y secondary industries.

The pOliCy of land settlement which has been adopted in connexion with our wheat-growing areas is one of the causes of the downfall of the industry. In some parts, we endeavour to grow wheat on’ land that should never have been set aside by governments for that purpose. I do not blame any particular government for this mistake; but the damage .has been done. In undertaking any reconstructive measures, we must unlock some of the big areas- of land which are owned by a relatively few persons. I refer particularly to large tracts of country along the Mumimbidgee River from Gundagai to Narrandera. In a normal season, no irrigation is .required in that area to assist settlers to produce good crops. I except the present season, because it has been an extremely bad one, and we cannot be guided by it. Prospective settlers were asked to make their farms in districts outside the wheat - belt proper, where the rainfall is fairly reliable, and, in addition, the areas granted to them were too small to give them a reasonable chance of making a success of their efforts. Responsibility for that mistake lies not with the farmers but with our legislatures-. Until land settlement is re-organized, farmers will always be in difficulties. Although there are many thousands of acres of excellent country, which enjoy a good rainfall an’d which would yield good crops, the land is not available for closer settlement. It is “ land-locked “. The Government should devise a long-range plan ‘ for the employment of members of the Australian Imperial Force when they return to Australia after the conclusion of hostilities. If they are prepared to lay clown their lives for this fair land, we should offer them social security. Our munitions factories also will not always be working, at full pressure, and many of the men at present employed in them will be thrown out of work. One way of absorbing them in useful occupations will be to settle them on1 the land, because Australia is principally a primary-producing, country. During the last war, in which Australia lost 60,000 men, the flower of its manhood, our troops fought for justice, freedom and security for themselves and their families. But many of those who returned found no economic security. Let us, therefore, profit from the mistakes that we made after the last war, and set aside for our soldiers good country where closer settlement will be a success. It can never succeed in dry areas. Let us plan for the future without delay, because a comprehensive scheme of land settle- ment cannot be devised and launched in 24 hours. I do not advocate the confiscation of big estates owned by a few individuals; every man has a right to possess sufficient land to enable him to support himself and his family - but it is wrong to have some of the best land virtually locked up when presently it may be needed for men of the Australian Imperial’ Force. So acute has .the position become that’ the sons of many farmers have drifted away from the land because they despaired of. ever making a success of agriculture in the poorer, drier areas. It is the responsibility of the Government to make the necessary preparations now for the purpose of providing economic security for. men of the Australian Imperial Force on their return to Australia. That is very important.

Another important thing is irrigation. This has been sadly neglected, especially in the west of New South Wales, the country of which I have been speaking. We have always been told there that irrigation is wanted, but it has never been provided to the degree to- which it should have been. I speak on this subject with the authority of experience. It is 45 years since a deputation waited on the Minister for Works in New South Wales at Barunga to ask for the provision of an irrigation scheme from Mullaley to Deniliquin, the “ Berriquin “ work which is only now in progress. In the meantime the settlers there have lost hundreds of thousands of head of stock. If the work had been done when the need of it was first seen, the devastating effects of the droughts of 1,902, 1914, 1919 and this year, which is the worst of all, would have been avoided. To-day in that district people are drinking brackish water which thirsty stock would refuse to drink. We call ourselves statesmen, yet we allow such things to exist! Only twelve months ago hundreds of thousands of cubic feet of waterran into the sea. That water should have .been conserved against such a year as we are now7 experiencing. I hope that the wisdom of future governments will not allow such conditions to continue.

At present there is talk about the diversion of the water of the Snowy River to a hydro-electric scheme - that i3 while the people of New South Wales are forced to drink brackish water! It is absolutely wrong and I shall oppose the scheme whenever I have the opportunity. Even with irrigation, the country to which I refer is not fit for wheat, but it is suited for stock raising and for the breeding of fat lambs. In my district we have topped the market for fat lambs, and, with irrigation, no man there would be insecure, because he could always grow sufficient stock to carry on.

Irrigation and land settlement are two of the most important problems, excepting the war, facing the Commonwealth Government, and I feel sure that during the term of this Parliament the Government will examine those problems much more seriously than it. has in the past, and ensure that land settlement and irrigation are brought to reality for the benefit of the rising generation.

The Treasurer (Mr. Fadden) in his budget speech yesterday, said that national credit would be a very dangerous thing. It might be after a while, in certain circumstances, but the very thing3 that I have referred to and a few more that I have not referred to - amongst them wheat stabilization, housing and slum clearances - are dependent on the proper utilization of national credit. “ In the past all efforts towards the solution of those problems have been met with the reply : “ We agree that all those schemes -are necessary, °but we have no money “. Yet, when war brOke out, countless millions came from somewhere. If money can be made available in wartime, it can certainly be made available in peace-time. We must use national credit to finance the Avar, but, as soon a3 someone talks about extending credit, the cry is raised, “ Inflation!” If it is inflation to make provision for land settlement, irrigation, clearance of slums and the security of the Australian people, let it be inflation, but let us have it. We have the Commonwealth Bank. We are not asking for something unconstitutional. We have the Constitution of the Commonwealth and we have a ‘ Parliament. We also have the report of the Monetary and Banking Commission, on which both sides of this Houfe were represented. That commission distinctly told us that the Commonwealth Bank could make money available to the Government or any one else free of any charge. I am not a constitutional lawyer. but I have enough sense to understand that clause of the report. No one asks for unlimited credit, but, while there is unemployment and there is work to done to develop Australia, money should be made available for that purpose, .just as it has to be’ made available to win the Avar. We refuse to J accept the bygone tale that Ave cannot do this or that because the money “is not there. It is there. It is in the Commonwealth Bank’s power to provide it. This Parliament, up to a point, can do anything as regards finance and we are quite entitled to demand that the Government use its powers through the Commonwealth Bank, created I am happy to remember, by the party which I am proud to represent, to provide means for the development of this country. During the last Avar when Sir Denison Miller was virtually in control of the finances of Australia he made available £350,000,000 at the small cost of i per cent. What could be done then can be done ]low, because Australia is better off to-day in actual improvements than ever. Every day Ave are doing something to develop the resources of this country, but not nearly so much as could be done, if Ave did as we are entitled to do and created credit through the central bank. That credit must be used not only for the prosecution of this Avar but also to make preparations for the absorption of our men when they return from the war. Unfortunately for Australia, however, Sir Denison Miller died too young. He had an able SUPporter in King O’Malley, in my opinion, the greatest statesman Australia e’er produced. It was he who brought the Commonwealth Bank into being and used it as it should be used for the benefit of the people. To-day that bank has been shorn of some of its powers, but it is in the hands of Parliament to restore to it the powers that it should possess in the administration of . Australia’s credit. If Ave cannot use the powers of our own bank in this critical period to save Australia from invasion, that bank is a failure. Should there be controversy between the Commonwealth Bank Board and this Parliament this Parliament is supreme. That fact is printed in black . and white. What plainer words can there he than those? We want no argument with the Commonwealth Bank Board - there is room in the world for all - but we do want power to control national credit. Until we exercise that control we shall get nowhere.

The budget imposes great taxes on the people least able to bear taxation. My belief is that people on £400 a year should not be asked to pay anything in tax - not while we have a Commonwealth Bank with the ability to create credit for the prosecution of the war. This very Parliament can right any problem of finance up to the point that created credit is used for the benefit of the country, and I hope that the Government will see its way clear to amend the budget in order to give relief to men in the lower brackets of income. We do not want to confiscate property or income, but we do want to reduce the profits of some of the big combines, which could pay much more heavily and not feel it, and to lighten the load on men who earn a paltry income and get nothing in the world other than what they eat and wear, on which the indirect taxation -is very heavy. We should not be- asked to lower the standard of living while credit can be made available through the Commonwealth Bank. As a great Australian writer has put it - The king must doff his purple and thequeen lay down her crown. The day arrives when “ the old school tie “ must stand aside. .Then, and not until then, will the great mass of the suffering Australian people get the rights, justice, security and happiness that have been so long denied to them.

Sitting suspended from 12.1(8 to 2.15 p.m.

Mr BREEN:
Calare

.- I concur with some, but not all, of the sentiments uttered by the mover and seconder of this motion yesterday, and I breathe a fervent “ amen “ to the pious hope that good will triumph over evil. We of the Labour movement, more so than - any other section of the community, recognized the danger to civilization constituted by the up-surge of Nazi-ism, Fascism, and Communism, but when Labour leaders sounded the tocsin in days gone by, they were met only with rebuffs. It was said that they did not want peace, and that, they were merely- causing trouble and doing something which would injure Australia’s relations with foreign countries. Apparently it was forgotten that the traditional policy of the Labour movement is a whole-hearted desire for international peace - in fact, almost peace at any price which does not involve the sacrifice of those principles which Labour holds dear. What happened when that alarm was sounded? The police of the States were used to break up meetings held to protest against the visits to Australia, and the machinations of the former enemy subjects, who, we all knew, were here to prepare the way for the ingress of Nazi-ism should an opportune occasion arise in the future. For instance, Count von Luckner visited this country and was showered with invitations to attend social functions, and those who protested against the fuss that was made of him were, called disrupters of international peace. Since Count von Luckner’s visit to this country many things have happened. Quite recently two ships were blown up by mines in Bass Strait, and in the course of the activities of minesweepers Australian lives have been lost. Justification for the warnings sounded by the Labour leaders in years gone by is apparent now, but no recognition or consideration is given to those people who took a definite stand in the days when it was extremely unpopular to do so. When the war broke out, and the Commonwealth Government appealed to the Labour party to assist it to do all that was necessary for Australia, to play its part successfully, the Labour movement answered magnanimously by saying, Take all the powers that are necessary to win this war, but use them only for the .purpose of winning the war “. And how were those powers used? Employing that newly-vested authority, Governments took punitive .action to repress and suppress men of liberal thought, and free organizations, which had first warned the people of the possible spread of Fascism, Nazi-ism, and Communism from Europe to our own shores. The drastic power which the Government sought, and which the Opposition gave willingly, was used as murderously and as brutally against the people of this country whose publicspiritedness prompted them to warn this nation, as power has ever been used by the Nazi party in Germany. I repeat that I can concur with some of the sentiments’ expressed by the supporters of this motion. With regard to others, I can only repeat what the Prime Minister said, namely, that there are fundamental differences between the Labour outlook and the Government’s outlook that cannot be bridged. The greatest fundamental difference is that between morality and expediency. Let us judge the Government by its actions during the last twelve months. Soon after the outbreak of war, the Government intimated that it considered necessary the rationing of petrol in Australia, and a Government spokesman appealed to the people to submit to a rationing scheme. On behalf of motor car interests spokesmen declared that the proposed restrictions on the use of petrol were illconsidered and excessive. Representations were made to the Government and the definite answer given was - “ These regulations are necessary and they will be enforced “. But then political expediency came into the picture, and it suited the Government to rush the general election. In spite of the definite declaration that petrol rationing was imperative, the introduction of the scheme was postponed until after the election. Obviously, when the Government had to choose between securing the return to Parliament of its candidates, and the immediate introduction of a scheme which it deemed to be necessary to save Australia, morality was thrown overboard, and political expediency prevailed. That is the fundamental difference between the ideals of the Labour party and the ideals of the Government, and it has been clearly demonstrated on many occasions. Take, for instance, the wheat industry. It has been very interesting, to watch the antics of the Government in connexion with that industry during the last few weeks. Conferences were held in Melbourne and in Canberra, and were attended by the Commonwealth Minister for Commerce, the State Premiers, and wheat industry experts. The experts and State- Premiers stressed the need for a- system of control in the wheat industry which would give to the primary producer a fair return for his product. The wheat’ farmers did. not Avant any profit from the sale of their wheat ; they merely asked to be paid the cost of production. But the Prime Minister said - “You cannot have that price “. The State Premiers, including the anti-Labour Premier of New South Wales, Mr. Mair, then said that the conference had proved abortive and that the Commonwealth Government would not budge. The Commonwealth Government spokesman said - “ That is the best Ave can offer. We cannot go beyond 3s. 6d. f.o.r. ports “. That WAS only about two weeks ago, but soon afterwards the result of the Kalgoorlie by-election became known, and the Government’s hope that its numbers might be augmented by the advent of a further representative was dashed. Once again, considerations of political expediency prevailed ; another wheat conference was held, and the Government announced that it had reconsidered its position, the figures given to it by its experts had been wrong, and it had been found that a scheme for the payment of 3s. lOd. a bushel f.o.b. could be implemented. Obviously, once again it was a matter of political expediency.

Speaking from the hustings, the Leader of the Opposition (Mr. Curtin) said that if he were returned to office he would see that any man who offered his life for his country would be guaranteed at least the basic waite, which WaS the minimum remuneration given to the man who works in God’s sunlight and under healthy conditions. Mr. Curtin, was accused of bribery; but when the Government on the eve of a by-election promised to pay the farmer 3s. lOd. a bushel f.o.b. that was merely “ reconsideration “.

Now I come to the efforts which are being made to win the Avar by the marshalling of Australian industries, mall-Dower and brain-power. In my opinion, the marshalling of brain-power is the most important, because if the 40,000,000 people who comprise the entire population of the British Isles are weighed in the scale against the 400,000,000 people residing in enemy countries, it is obviously a physical impossibility for them to survive unless Ave can counterbalance the excess of manpower by brain-power far superior to that existing in the oligarchies of Europe. To what degree arc Ave exploiting our available brain-power ? The Government will not come out into the open and tell the people just what their position is; it will not rely on the people to do things for themselves. Only recently I was speaking to several returned soldiers who were officers during the war of 1914-18, and I’ asked them if they realized the ‘danger that confronted Australia. The reply was, “ We only know what has been implied. Nothing has been definitely -stated “. - I’ said to them, “ We are in desperate straits “, and they said, “We know that; we can read the papers, but what are we to do?” They pointed out that there are hundreds of young mcn hanging around street corners of every small town in Australia, or carrying their swags along the highways, and they asked - “ Why are these men not mustered and trained? If our position is so desperate, why are the services of those men not utilized?” That, was a logical and common-sense view. If the Government were to sound the tocsin and say, “ We must rely on our own efforts. We must copy wha’t the Nazis have done in. their rise .to power, and organize our units of industry and man-power “, the men would respond willingly with true Australian self-reliance, and the result would, be a complete utilization of the mental and physical’ power of our 7j000,000. people.’ .If ‘.that were done, we could. defend ‘ our shores against any enemy . that might come against us in . the ne’xt three or four years. But it has . not” been. done. If we go down, in- this, struggle against the masses of the .central powers, it will not be because- of the. failure of democracy. The fight will not have been between democracy on the one side and autocracy, on -the other side;, it .will have been a fight pf one autocracy- against another. In one case the controllers will have been a gang of fools ; - in the other,, a . gang of crooks. If -I had no personal interest in the- struggle- and if I were a betting, man my money would -be .on the latter. The Government has been anxious to induce the Labour party to join in the formation of- a national government. Early this year, when the Country party stood . aloof . f r.om ,the Government, Mr. Menzies and. his party were able- to carry on unaided,- but lengthy negotiations led to the return of the Country party to the fold. When that combination faced the electors recently it- suffered several losses from its ranks. Two of the defeated men - Mr. Nock and Mr. Thorby - were Country party Ministers. The skids were put under Mr. Thorby in the electorate of Calare by those people whom he trusted to help in securing his re-election: - the members of the United Australia party. That party did not want Mr. Thorby to be returned to office. I am not shedding any crocodile tears at the political demise of Mr. Thorby but I have learned a lesson from if. The Country party was led into a trap ; but the Labour party will not fall into a similar snare, be blamed for mistakes of the Government and then be dumped. The Labour movement must do every thing humanly possible to displace this Government, because the Labour party alone is capable of inspiring the common people of Australia to defend themselves successfully against the forces of evil. The defence of Australia now depends upon the common people.

I come now to the question of how the war is to be financed, Mr. Menzies succeeded the late Mr. Lyons as Prime Minister. When a progressive scheme of finance was propounded to Mr. Lyons as a means of raising the country out of the morass of the depression he replied, “I am solidly behind the banks”. Mr. Menzies has echoed that foolish pronouncement, and unfortunately that policy will be carried on so long as an anti-Labour group occupies the treasury bench. The budget which was introduced yesterday provides that approximately one-third of the huge amount of money to be raised is to be obtained by loan, one-third’ by taxation, and the remainder by the expansion of credit. We on this side of the chamber ask’ why the raising of loans and the imposition of taxes should be continued. To use those methods is merely to continue along the lines of orthodox finance, which has been proved to be a failure. The orthodox policy has simply resulted iri the piling up of masses of figures on the ledgers of the country. A slide rule would be required to reckon in figures what this country owes. Those figures are not added now; they are weighed. When Australia “was suffering during the depression a financial wizard came to light and said : “ We will expand credit”. The credit of Australia was pledged to redeem the money which the nation was raising on the market. Extra Credit was gi ven to the producers in order that they might produce to the limit of their capacity. The unemployed were then put to work so that they could live in hotter conditions, provide themselves and their families with more comforts and save money which they could deposit with the banks. When those deposits were made the private banks lent them back to the Government. The process isillustrated better by assuming that the Commonwealth Government produced “ A “ quantity of credit. That was transferred to the producers, who had “A” quantity of credit entered against their names in the ledgers of the’ private banking institutions. Then those institutions Icnt “ A “ quantity of credit back to the Commonwealth Government, which taxed the people in order to secure the money with which £o repay its debt of “A” quantity of credit to the private banks. This wizardry began with the creation of “ A “ quantity of credit. It ended with “ A “ quantity of credit in the hands of the private banks, “ A “ quantity of credit for the producers in the ledgers of the private banks, and “A” quantity of credit loaned to the Commonwealth Government, which originally created that credit. A financial miracle had occurred. During the depression there were hundreds of thousands of unemployed men in Australia. The silos of the country were bursting with the produce of the fields, but the workshops were lying idle, and starvation, unemployment and misery were everywhere. Suddenly this miracle was performed, and when war broke out, the people said, “ Credit expansion is good ; do it again “. But the financial wizard said “No; we cannot do it again. We should have inflation if we did it again, and inflation is a terrible thing; it i3 much worse than the influenza germ; in fact it is .worse than a Labour politician. Do not touch inflation “. But if the bankers juggle credit, it is called “high finance”, not inflation. The consequence of high finance is really deflation, which leads to unemployment and misery and the inability of the country to function economically and efficiently at this time when the economic machine of the nation should be working better than ever before. There is an old saying “ Whom the gods destroy, they first make mad “. When the proposals contained in the budget speech of the Treasurer (Mr. Fadden) are fully implemented, such confusion will result that the Government will be only too glad to surrender the reins of office and say to the Labour party “ Take over, we cannot carry on”.

I come now to the problem of the wheat industry. When the MenziesCameron Government went to the country it had in its ranks certain Country party members who are not here to-day. Those members were deposed by the electors and replaced by members of the Labour party. That change was caused by the mass organization of the wheat-growers of Australia. The influence of that organization on the political situation has been felt in Victoria, New South Wales and Queensland, and it will be felt in the near future in Western Australia at fife by-election in the Swan electorate. The

Minister for Commerce (Sir Earle Page), when talking about the operations of the wheat pool, said that the expenses of the pool amounted to about 7d. a bushel. I think that it would be more correct to say that the expenses amount to on’e shilling. When this Government makes available to the wheat-growers the balance sheets of the No. 1 Wheat Pool and No. 2 Wheat Pool there will be such repercussions, not only in the country districts but also in the metropolitan areas, that the Government will regret that it did not leave the operation of tire wheat pool in the hands of the wheat-growers as the growers demanded. Only by grower, control can the pool successfully operate. The Minister for Commerce is now making much of his plan for the payment of 3s. lOd. a bushel f.o.b. He says that that price, will represent an increase of 4d. a bushel on1 the previous offer of 3s. Cd. f.o.r. But on analysing, the costswe find that the actual difference will be not more than 2d. It seems that the Government cannot be generous in anything. ;

Mr Scully:

– It is more likely thatthere will be no difference.

Mr BREEN:

– That may be the result. What are the wheat-growers to do in the meantime ? Theproblem of wheat production has been overcome. Harvesters, multiple ploughs, tractors and other modern farmingappliances have disposed of most of the difficulties of production in reasonably good seasons. The main problem in the future will be that of marketing. The Government has said that it will stabilize the industry from next year. But unless somethingbe done for the growers in the meantime there will not be many left;evenif the country survives until then. They will be forced off the land. Part of the scheme for the stabilization of the industry is the limitation of acreage. What does the Government propose to do about the machinery that is now on the farms that will not be licensed under this system ? Will the Government pay for that? What will it do about hay? Will it guarantee to the farmers a price for that? Wheaten haywillnot last in storage for more than twelve months. These are some of the problems that confront the Government when it talks even of next year’s harvest. But what about this year’s harvest? Only a few hundred thousand pounds has been allotted by the Commonwealth Government for loan to the State governments, which, in turn, are -to lend the money out to the farmers. At the present time farmers in many parts of New South Wales cannot secure enough credit from their store-keepers to provide food for their families for even one week. The wheat certificates issued by the Government were never paid in cash to the farmers. They were paid into the banks - in many instances, to reduce the overdrafts of the farmers. They took from those wheat certificates ‘ all that the farmers owed them, and nothing was left with which the farmers could pay their storekeepers, butchers and bakers. The tradesmen cannot afford to carry the farmers on credit any longer, so the poor farmers have to scratch for themselves. What does the Government propose to do about that? Ithas spoken of loans. But what can be used as security for loans?

Many farmers have no equity in their farms. The scheme which has been propounded proves, on analysis, to be just as futile as any other scheme which has been put forward by this Government. Only yesterday the Minister for Commerce announced the result of the operation of the apple and pear acquisition scheme. He said that £750,000 has been lost on the pool. The people of Orange, in the electorate of Calare, suffered so severely as the result of the acquisition of their crops, that many of them refused to register. In consequence, men, whose returns were not sufficient to pay their current accounts with the butcher and the baker, were fined £10 each. The scheme has operated with so little consideration for the needs of that particular district that in the aggregate an amount of £20,000 or £30,000 is owing to the small storekeepers, who in the near future will become bankrupt unless they obtain the benefit of a moratorium. The primary producer is of more importance to this country than the armaments manufacturer. He has established the commerce of this country, and at the termination of the war he will continue to be the mainstay of the nation. But what policy does the Government adopt towards him in comparison with its treatment of the armaments manufacturer? It sent to the Broken Hill Proprietary Company Limited, which last year made a profit of £1,500,000, a deputation to ascertain the price at which that company could make munitions of war, including shells and guns. The reply of the company was “ We have not made them previously, but how much are you prepared to give?” The company was told to seewhat it could do, and to add to the cost of production a certain percentage for profit. The Government promised to conscript labour, if necessary, to work at the company’s lathes, saying “ We want these munitions, and you have not to do anything except make a profit on their production “. I invite honorable members to compare that with the Government’s treatment of the producers of wool, wheat, apples and pears. These men are told “We are taking your product, but shall not say how much we will give you for it. At some time we shall give you something, which may not even meet the cost of production”. What the wheat producers have received so far did not equal the cost of production. The Government lias invited the Labour party to join in the formation of a national government. The fundamental difference between expediency and morality will preclude any coalition of the Labour party and the anti-Labour parties.

Mr WARD:
East Sydney

.- I had not proposed to take part in this debate, and would not do so but for very serious statements that- were made at the Federal .Congress of the Returned Soldiers and Sailors Imperial League of Australia, held in Canberra last evening. These statements were so astounding as to call for the attention of members of this Parliament. I am not suggesting for a moment that the Returned Soldiers and Sailors’ Imperial’ League of Australia, as such, is responsible for the statements, nor am’ I suggesting that the members of that organization, or returned soldiers ‘generally throughout the Commonwealth, endorse them. The fact remains, however, that men who hold prominent positions in this country have made astounding statements which have already been published in the daily press of Sydney, and, I suppose, also in the press of other cities of the Commonwealth. Among the resolutions passed by the congress was one urging upon the various political parties the necessity for the formation of a national government. It was originally proposed that a “ demand “ should be made upon members of this Parliament,, and only after Sir Gilbert Dyett, the Federal president, had appealed to the delegates ware they prepared to soften the terms of the resolution so as to request, and not demand, the formation, of a national government. I ask. those honorable members who applaud the proposal, to listen very carefully to some of the statements that were made at the congress. These statements reflect upon every member of this Parliament. A newspaper report states -

A significant feature of the debate was that delegates were obviously influenced in their strictures of Parliament by their experiences in a visit to the House of Representatives earlier in the day. Highlights of the congress. proceedings were imputations against tho personal loyalty of unnamed members of Parliament, and the applause which greeted reiterated suggestions that, unless Parliament mended its ways, it must be replaced by a dictatorship.

Submitting a motion, Mr. H. S. W. Marshall, Victoria, said he did not know how’ politicians could be made to realize the nation’s danger.

Mr. L. A. Robb ; Hit them with a brick.

Mr. Marshall. ; I doubt whether even that would be sufficient.

Mr. Robb ; Then put them at the end of a gun.

Mr. E. Tackaberry, Victoria, said that a national government was the only way to end the situation in which factories supplying essential war needs were idle because nien were using. Australia’s peril to extract money concessions which they would have no hope of getting in normal times.

Mr. W. D. Sharland brought cries of approval, when he said that the delegates’ visit to Parliament House had disgusted and amazed him with the revelation of the way in which the proceedings were conducted. “ It this is the best democracy can do, the sooner we have a- dictator the better “., he ex claimed. “ What I saw to-day made my bloodboil. A big percentage of politicians are not doing their job. We must tell them plainly that unless they do it we will step in and do the job of government ourselves.”

Mr. Robb advocated making members of Parliament take the oath of allegiance separately, and in a clear voice that everyone could hear. There was good reason to doubt whether they would all swear allegiance to the King unless this method was applied. “ There is one member . in particular to whom this remark applies, and I call upon him to take notice “, declared Mr. Robb. “ All of us heroknow who he is.” Mr. Robb urged the Prime Minister to take full powers, and govern as a dictator. If members of other parties would noi support him, the returned soldiers would cce that he was enabled to carry on. He added, that otherwise he believed that soldiers returning from this war -would be so fed up wilh the political position that they would say “ We have played om- part in saving Australia,, so now we will take over the government of it”. Soldiers of the last war, he concluded, would stand with them when they took that course.

It may be true that in different parts of this country irresponsible persons make statements concerning democratic government in Australia and other parts of the world. In this case, the matter is much more serious. This man Robb is private secretary to the Governor of New South Wales; he holds an important public position. May I say to the members of this Parliament thai those who claim to speak for this organization do not truly reflect the opinions of returned soldiers throughout Australia.

Opposition Members. - Hear, hear!

Mr WARD:

– The many workers now engaged on the other side of the world as members of the Australian ImperialForce, the Royal Australian Air Force and the Royal Australian Navy, who are told that they are fighting to defend democratic government,will have a rather sad awakening if the Government sits idly by and permits such statements as those I have quoted to be made by men holding high and important public positions in this country.

In other parts of the world, men who have attempted to undermine and destroy confidence in democratic government have been dubbed “ fifth columnists “. Evidently in this country these men are to be at liberty to do and say just what they like. . There have been innumerable prosecutions, “and punishment has been inflicted on men and women for. Having made statements which, in effect, merely expressed a total lack of confidence in the Menzies Government. Because they have criticized thisGovernment on account of its inactivity in certain directions, and its failure properly to organize the nation for defencepurposes, action has been taken against them under the national security regulations. They have been prosecuted and fined because they have offered ordinary, everyday criticism of the activities of this Government.

I urge the Government to indicate to the publicthat it does not share the views of Mr. Robb andothers who supported him at that congress. If the Government wants the united support of the nation, it must administer thelaw impartially, treating all “sections alike. I have attacked the Government as bitterly as anybody has - and Ibelieve everybody should have liberty to do so - but this is an attack upon a democratic institution. Every member of the Labour party has fought strenuously to assist ex-soldiers who served in the last war. We have endeavouredalso to obtain fantreatment and higher rates of pay than the miserable allowances now received by those serving in the present war, and no assistance has come from these alleged champions of the returned soldiers. We may assume that, when workers leave their employment in large numbers, and thus penalize those dependent on them, they have a just cause for their action. Therefore, it is amazing to find that, although these alleged champions of ex-soldiers are endeavouring to cast aspersions upon the efforts of the workers, many of whom are returned soldiers or the sons of returned soldiers, to protect their own interests in industry, they do not say one word about the enormous profits made by Broken Hill Proprietary Company Limited, the profit of 231/2 per cent. on ordinary capital secured by David Jones Limited, or the big profits obtained by many other commercial undertakings as a result of the sacrifices made by the people. Evidently the fifthcolumnists who claim to speak for the returned soldiers are not concerned about attacking those who are really retarding the war effort.

This matter should not be allowed to rest where it is. An aspersion has been cast upon every member of this Parliament, irrespective of whether he is a supporter of the Government or a member of the Opposition. This is an insidious form of propaganda designed to inflame the public mind and to lead the people to believe that parliamentary government is, in the present circumstances, impossible. It is an attempt to create a favorable opportunity for the introduction of a form of dictatorship such as that against which we are fighting abroad. Every member of this Parliament, and everybody outside who claims to be a democrat, should take steps to protect our democratic institutions. The Prime Minister (Mr. Menzies) himself has, I think, declared that it would be a tragedy if we lost at home the things for which we are fighting abroad. But the people require deeds, not words. The statements by those who claim to speak with authority must not go unheeded. The Government should say whether it guarantees the preservation of our democratic institutions. If it does, let it use the law against those who are endeavouring to undermine those institutions.

Debate (on motion by Mr. Calwell,) adjourned.

page 143

ADJOURNMENT

Machinery of Industrial Peace

Mr MENZIES:
Prime Minister · Kooyong · UAP

– In moving -

That the House do now adjourn,

I shall submit a short statement regarding the problem which has been receiving the attention of the War Council at recent meetings, namely, the machinery to be provided for the maintenance of industrial peace. The War Council has unanimously agreed upon certain proposals designed to carry out the first principle stated by it on the 30th October last. That was -

That the machinery for the adjudication of industrial disputes should be made adequate for the prompt consideration of grievances and their settlement.

The Council agrees that the Commonwealth Court of Conciliation and Arbitration must be preserved as the centre of the arbitration system, but is. of opinion that the means available to it should be made more extensive and. flexible. In particular, it is desirable that ways and means should exist for prompt intervention in any dispute or difference, however small, the growth or aggravation of which might impair the war effort.

The Council has also taken into account the fact that whereas the jurisdiction of the court is, in times of peace, limited to the prevention and settlement of industrial disputes extending beyond the limits of one State, there are in time of war no limits to the Commonwealth’s industrial power, except such limits as are to be found in the defence power itself.

Consideration of these matters has enabled the Council to agree upon the following proposals : -

  1. Three more conciliation commissioners are to be appointed, making four in all. The War Council will be consulted before the. additional appointments are made. Two of the additional appointees will be stationed in New South Wales and one will be available for regular visits to Darwin.
  2. The conciliation commissioners will be linked with the Arbitration Court and under the general jurisdiction of the judges.
  3. The prime duty of each conciliation commissioner will be the prompt investigation of disputes on the spot. The committee method will foe employed, but instead of a cumbersome system of standing committees in various industries, the conciliation commissioner will, in consultation with employers and union officials, constitute an ad hoc committee to assist him in any particular investigation. The commissioner will be a conciliator. He will report promptly to a judge of the court as to the nature of the dispute. If the judge is of the opinion that the matter of dispute is purely local or, for some other reason, suitable for determination by the commissioner, he will empower the commissioner to arbitrate. If not, he will refer the matter into court for adjudication there.
  4. Extensive reforms of procedure are agreed upon for the duration of the war and pursuant to the war powers -

    1. Limits placed upon the jurisdiction of the court to deal with industrial disputes will be removed ;
    2. The court will have power to dispense with the serving and filing of documents in proper cases ;
    3. The court will have power to make a. common rule ;
    4. The court will have power to make an industry award;
    5. Awards and agreements now in operation will continue until varied;
    6. The court will be given authority to exercise any of its powers on its own initiative;- (g). Government regulations affecting industrial conditions will come automatically within the ambit of the court’s authority,par ticularly for purposes of interpretation.
    7. The court will be authorized to empower boards of reference to investigate, report upon, recommend with respect to, or decide any industrial matters referred to themby the court irrespective of whether any such matter arises under an award of the court or otherwise.
    8. The Minister for Labour and National Service will be empowered to institute proceedings in the court and to direct the court to hear and determine any matter which has led to or is considered by him to be likely to lead to a strike or stoppage of work.
    9. In order that State tribunals should continue to exercise their proper authority in matters appropriate for their decision and at the same time in order to avoid unnecessary overlapping of jurisdictions, negotiations will at once be put in hand with the Premiers of the States with a view to making some mutual arrangement whereby the Chief Judge of the Commonwealth Court of Conciliation and Arbitration shall have power to remit to a State tribunal or direct it to deal with such matters as he considers appropriate-

Honorable members from Queensland will appreciate the necessity for some provision of that kind -

  1. An endeavour will be made to establish a fuller use by the Commonwealth court of assessors representative of employers and employees so as to reduce ‘the volume of formal evidence and expedite decisions.

    1. The reference to the common rule needs some elaboration. The Council recognizes that this power should be flexible so that the common rule may be one for an industry or a portion of an industry or a group of industries, according to the discretion of the court. Care will also need to be taken to see that there is no unnecessary interference by the proclamation of the common rule with State industrial laws and determinations. Where, therefore, it appears that any projected common rule may affect rights under the decision of some State tribunal oor State law, the relevant Commonwealth judge will be required to consult with the chairman or president ofthe relevant State tribunal before making his decision.
    2. In order that the greatest possible speed may be obtained, it will be provided that any organization or employer knowing of any matter which may lead to a strike or the holding of a stop-work meeting or any other interruption of work shall forthwith inform the registrar or deputy-registrar thereof. Upon receipt of such notice the court will either of itself or through a conciliation commissioner or board of reference investigate and determine, or causeto be investigated or determined, the matters indispute.

The Government is pleased to know that unanimity has teen obtained in the War Council in respect of these important matters. It shares the hope of the Council that this attempt to expedite and simplify the decision on matters in dispute will be widely appreciated by all those concerned in industry and by the public generally. It does not, of course, regard the proposals now made as necessarily the last word. Experience will no doubt suggest other improvements, and we shall not hesitate to make those improvements in order to serve the general ends of industrial justice and industrial peace.

I should like to add one or two observations, following upon the remarks advanced this morning by the honorable member for Barton (Mr. Evatt) to the effect that changes of this kind should be made by the passing of a bill through the Parliament, thus giving full opportunity for discussion of the subject. As honorable members will realize, we are dealing with a problem of very great urgency. I believe that I express the unanimous view of the Advisory War Council when I say that on account of the urgent necessity for expedition in this matter, we propose, in the first instance, to institute these changes by regulation. At the first convenient opportunity, however, the changes now being made by means of regulation will be submitted to Parliament in the form of a bill so that honorable members may fully discuss them. But it would be a pity if these changes which are, I believe, quite non-contentious, could not be brought into immediate effect but must be delayed, as would inevitably be the case if they had to wait upon the introduction and debating of a fairly long bill.

Mr Paterson:

– I assume that the power to make a common rule is being taken under our National Security Regulations ?

Mr MENZIES:

– As the honorable member doubtless knows, the original Conciliation and Arbitration Act contained provision for the making of a common rule, though grave doubts existed in relation to the constitutional power to do so. There are, of course, decisions of the court against such action. Consequently we propose to make the common rule under the provisions of the National Security legislation, because we believe that we are dealing with a most important war-time problem.

Mr JAMES:
Hunter

.- Whilst I am pleased to hear the statement made by the Prime Minister (Mr. Menzies), I regret that one aspect of the industrial problem does not seem to have been provided for, although representations in connexion with it have been made to the Government from time to .time. Special machinery is undoubtedly necessary to deal with the intricacies of the great coalmining industry. During the last war trouble occurred in this industry, as the result of which the Industrial Peace Act was passed. That act is still on the statute-book, but it has been a dead letter for many years, despite the fact that representations have been made to have it put into operation again. I believe that the Advisory War Council was approached by letter concerning the desirability of setting this machinery in motion ; but apparently no action of that nature has been taken. However, as the right honorable gentleman has said that the proposals now before us do not express the last word in respect of alterations of the existing procedure, I hope that steps will be taken to give favorable consideration to the representations that have been made from time to time in connexion with the coal-mining industry and which have, on occasions, been partly approved, but somehow, have never been acted upon completely. Apparently this matter will be shelved once more. It is not improbable that industrial trouble will occur in the coal fields district next Wednesday. Since question time this morning I received a telephone message from officials of the Federated Engine Drivers and Firemens Association informing me that yesterday they applied to Judge Drake-Brockman for certain amendments to the award which His Honour recently made for the coal-rnining industry. His Honour absolutely refused the application, despite the fact that in his original award he pre- scribed, in some cases, a differentiation of as much as 4s. between the rates for similar classes of work in different States. t His Honour refused to rectify that, and many other anomalies, in the award, lt is impossible for any man, in spite of every desire on his part to be .fair, to arbitrate in respect of an industry with which he is not fully acquainted. That is the complaint now raised, :by those engaged in the coal-mining, industry. They will be satisfied only with an arbitrator who has an intimate knowledge of the industry. If such an arbitrator be not available, all sorts of anomalies are bound to occur. In order to show how Judge Drake-Brockman erred in making his original award through his very ‘ efforts to be fair, let me instance the case of a bricklayer engaged in building a stopping or overcast down below for ventilation, or sealing off a fire. That man does what is termed rough brickwork, and in respect, of him His Honour prescribed a rate which is approximately 2s. a day less than the rate for work performed by bricklayers on the surface. His Honour thought that the bricklayer engaged on the surface in building a beautiful edifice was the more efficient tradesman. Let me explain what rough brickwork in this instance really means. A man engaged in this work must be not only a bricklayer, but also a practical miner and a practical timber man. He must be able to withdraw, and replace, timber, and trim a rib in order to put up a brick stopping. Only a practical miner can do that work. I do not suppose that any honorable members listening to me at the moment fully grasp what I am saying, but that very fact should help to drive home the point which I have repeatedly emphasized, viz., that it is very difficult for any arbitrator to grasp the intricacies of an industry of which he does not possess intimate knowledge. A worker engaged on rough brickwork in a mine also runs the risk of asphyxiation by gases when he is endeavouring to seal a fire. This actually has happened ; in sealing the Stanford Merthyr mine in 1905, an explosion occurred, killing five men. If I were an arbitrator I should not hesitate to give to him a considerably higher rate than that which I should prescribe for a bricklayer engaged on the surface, because the latter labours under congenial conditions and in a much healthier atmosphere. I am sick and tired of trying to impress upon the Govern- ment the necessity for implementing the provisions of the Industrial Peace Act. That legislationwill bear the closest examination. The industry worked under its provisions for eleven years, and the miners found no fault with it. Through it many threatened disputes were averted. It enabled parties to have recourse to arbitration immediately a dispute was anticipated. I have done my best to impress upon the Government the importance of my request. I have introduced three deputations on the matter to the Minister, but the only response we received was an intimation that the matter was being referred from one Minister to another. We were then told that it would be submitted to the Prime Minister. No doubt we shall next be told that it is a matter for Cabinet. I pay a tribute to the Minister for Labour and Industry (Mr. Holt) for his cooperation. He has agreed to confer with representatives of the miners in Sydney on Tuesday next. However, I cannot hope that the provisions of the Industrial Peace Act will be applied as expeditiously as I should like, because the Cabinet will not be meeting until next Wednesday, and I cannot assume that even then it will agree to my request. When so many appeals are being made to the workers to give of their best in the nation’s war effort, it seems” hardly reasonable to refuse the request of the sinners, who simply ask that the provisions of the Industrial Peace Act. be again applied to the industry. Now we discover that whilst the claims of workers in other industries have been considered by the Advisory War Council, that, body has not dealt with the claims of the miners. Surely the Government recognizes that the coal-mining industry is vital to the successful prosecution of our war effort, because coal is essential for the manufacture of steel. So long as the Government maintains that attitude it is courting another hold-up in the industry, and I have no doubt that should such a. hold-up occur the miners will be blamed. It will be said that they are Communists, or Bolshevists, and dis rupters, who are only trying to sabotage the country’s war effort. What the hell are you doing to promote industrial peace ?

Mr SPEAKER (Hon W M Nairn:
PERTH, WESTERN AUSTRALIA

-Order!

Mr JAMES:

– I am sick and tired of pleading with the Government to redress the grievances of the coal-miners. Up to date I have presented their claims as calmly as possible. On many occasions I have deliberately modified my attitude. Now, however, I feel that the miners are simply being stalled off, and that the Government does not intend to do anything to meet their claims.

Mr MENZIES:
Prime Minister · Kooyong · UAP

in reply. - To the honorable member for Hunter (Mr. James) who has, of course, consistently and strongly advocated the claims of thecoalminers in the matter to which he has just referred, I need merely say that if he will examine the statement I have just made he will find that the machinery referred to in it may well go a long way towards meeting the difficulties he has described.

Mr Evatt:

– Particularly if one of the commissioners to be appointed should possess intimate knowledge of the coalmining industry.

Mr MENZIES:

– That is so. I assure the honorable member that neither I, nor any other member of the Advisory War Council, omitted to consider the matter which he has raised. The machinery referred to in my statement will go a long way towards meeting the situation in the coal-mining industry. Should it be found in practice, or upon examination, that that is not the case, and that some special course ought to be followed, I should certainly facilitate consideration of such a proposal by the Advisory War Council.

Question resolved in the affirmative.

page 146

PAPER,

The following paper was presented : -

Commonwealth Public Service Act - Appointments of M. P. Colebrook, R. L. Fraser, Department of Defence Co-ordination.

House adjourned at 3.23 p.m.

page 147

ANSWERS TO QUESTIONS

The following answers to questions were circulated: -

Sir Frederick Stewart:
UAP

– The answers to the honorable member’s questions are as follows: - 1, In conformity with the established methods of consultation between the United Kingdom and Dominion Governments, the commomwealth Government was fully informed beforehand of the proposals to be made to the Soviet Government by the British Ambassador at Moscow.

  1. As part of the consistent policy pursued by the United Kingdom Government since the beginning of the war with the object of improving Anglo-Russian relations, the proposals had the approval of the Commonwealth Government.

Mr.Ward asked the Prime Minister, upon notice -

  1. Has the National Oil Proprietary Limited begun production of petroland oil at Newnes in accordance with its agreement with the Commonwealth and the State Government of New South Wales?
  2. If so, what has been the cost of production?
  3. What percentage of this cost is represented by payment of royalties and to whom are these royalties paid?
Mr Badman:
GREY, SOUTH AUSTRALIA

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

  1. What area of land was originally acquired by the Commonwealth Railways atPort Augusta on the opening of the east-west railway?
  2. Of the total area acquired how much was set aside for building blocks?
  3. What is the number of houses which have been erected for officers and employees of the Commonwealth Railways?
  4. What is the number of building blocks at present available forbuilding purposes on land acquired by the Commonwealth Railways?
  5. Is it the intention of the Government to make sufficient funds availablefor building homes at Port Augusta to meet the demands of Commonwealth Railways’ employees who are seeking homes?

Cite as: Australia, House of Representatives, Debates, 22 November 1940, viewed 22 October 2017, <http://historichansard.net/hofreps/1940/19401122_reps_16_165/>.