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House of Representatives
1 August 1945

17^th Parliament · 3^rd Session

HOUE OF MEETING
GALVANIZED IKON
QUESTION
- TOBACCO
QUESTION
- MASCOT AERODROME
QUESTION
- LOCAL GOVERNMENT AUTHORITIES
QUESTION
- TEXTILE INDUSTRIES
QUESTION
- SURVEY OF RATIONED GOODS
QUESTION
- LAND SETTLEMENT OF EX-SERVICEMEN
QUESTION
- PIG MEATS
QUESTION
- DUTCH TROOPS IN AUSTRALIA
QUESTION
- HOUSING
QUESTION
- WAR SERVICE HOMES
QUESTION
- HIGH COURT
QUESTION
- AUSTRALIAN ARMY
QUESTION
- LABOUR GOVERNMENT IN GREAT BRITAIN
QUESTION
- EDUCATIONAL FILMS
MATRIMONIAL CAUSES BILL 1945
- Second Reading
COMMONWEALTH PUBLIC SERVICE BILL 1945
- Second Reading
SUPERANNUATION BILL (No. 2) 1945
- Second Reading
WINE OVERSEAS MARKETING BILL 1945
- Second Reading
SCIENCE AND INDUSTRY RESEARCH BILL 1945
- Second Reading
AUSTRALIAN NATIONAL AIRLINES BILL 1945
COMMONWEALTH INSCRIBED STOCK BELL 1945
- Second Reading
NATIONAL DEBT SINKING FUND BILL 1945
- Second Reading
COMMONWEALTH ELECTORAL (WAR-TIME) BILL 1945
PAPERS
ANSWERS TO QUESTIONS
- Alien Farmers
- Rayon Manufacture
- Life Insurance: Warrisk Charge
- Textile Industries: Stocks - Clothes Rationing Scale

Mr. SPEAKER (Hon. J. S. Rosevear) took the chair at 10.30 a.m., and read prayers.

page 4829

HOUE OF MEETING

Mr White:

– A serious crash recently occurred at Mascot.

Mr BEASLEY:

– The honorable member knows that crashes are not always attributable to the conditions of the aerodromes. Human factors come into consideration.

Mr White:

– That is so, but the recent crash occurred in taking off from the aerodrome.

Mr BEASLEY:

– I have noted differences of opinion among experts on the matter which the honorable member has raised, and I have read their statements with interest.’ Amongst various suggestions is one that a new airport should be established at Bankstown, and the latest if that it should be ‘built in the vicinity of Penrith. I do not know whether Mr. Love is really competent to express an opinion regarding the suitability of the aerodrome at Mascot. Perhaps, the honorable member himself would be more competent. In view of the limited area available at Mascot, the best we can do at the moment is to make that aerodrome as safe as is humanly possible. I am sure that the Minister for Air will work to that end.

page 4830

QUESTION

QUESTION

DUTCH TROOPS IN AUSTRALIA

Mr MENZIES:
KOOYONG, VICTORIA

– Oau the Prime Minister say whether the Australian Government, or any Minister on its behalf, last year agreed that the Netherlands Authorities should bring to Australia to be accommodated, trained and equipped in Western Australia, a large force of troops, said to be about 30,000, from the Netherlands ? Has that arrangement now been cancelled by the Australian Government, and if so why ? Will the Prime Minister lay on the table of the House the file relating to this matter?

Mr CHIFLEY:
ALP

– There was a suggestion made, I think some time last year, that the Dutch would be likely to ‘bring to Australia certain forces, some of which would be quartered in Western Australia, but there wa3 nothing very concrete about the proposal. As is known, there are already some Dutch forces here, principally members of the Dutch Air Force. A suggestion was made that a large force of Dutch troops should come to Australia to be trained. In such matters the Government has been guided at all times, not by financial considerations, but by the capacity of the Australian nation to- meet physical requirements of troops based on Australia. This has been explained to all the Allied Governments concerned, including the Government of the United States of America. There was a point beyond which we could not go. Any decision as to what could be done for our Allies has been based in every case upon the physical capacity of this country to meet their needs. We have always told the countries concerned what we were able to do, so that they would be in no way misled, but would understand the situation.

Mr White:

– If we had the Dutch troops here they would relieve some of our own men.

Mr CHIFLEY:

– I do not want to go into the matter in detail. I know of no particular file on this subject. Communications have passed between the Commonwealth Government and the Netherlands Government, and there havebeen incidental references to the matter in cables and documents. Where we artunable to supply the physical needs of our Allies, either in buildings or equipment

Mr Menzies:

– The right honorable member does not suggest that there is n shortage of military buildings in Western Australia ?

Mr CHIFLEY:

– I am merely giving an outline of the general position. As 1 have said, I know of no file of papers on the subject, and any communications are of the kind which ordinarily pass between one Government and another. 1 shall look into the matter, and see whether I can make a more complete statement on it later.

page 4831

QUESTION

HOUSING

Mr DALY:
MARTIN, NEW SOUTH WALES

– I desire to ask the Minister for Works and Housing for information about the sub-division of large dwellings. In this connexion, the Sydney Sun, of the 31st July, published an editorial in which the following occurs -

As the Mayor of Waverley, Aid. Anderson, said, there are hundreds of homes with ID to 20 rooms, housing only a few people who would be glad to convert them into flats for two, three or four families.

Before the winter started, Melbourne had converted over 1,000 old homes, and Adelaide was tackling the project with confidence of success. Why not Sydney!

Will the Minister arrange a conference between the Commonwealth Director of Housing and State and local governing authorities with a view to convincing them of the desirability of sub-dividing many large homes in Sydney to relieve the acute housing shortage?

Mr LAZZARINI:
Minister for Works and Housing · WERRIWA, NEW SOUTH WALES · ALP

– Yes. The New South Wales Housing Commission, 1 understand, is inquiring whether building materials would be better used in subdividing existing houses or in new construction. I hope to have more information within a few days.

page 4832

QUESTION

WAR SERVICE HOMES

Construction Target - Conditions of Eligibility

Mr WHITE:

– The annual report of the War Service Homes Commission for 1943-44, which was ordered to be printed on the 15th June last, summarizing operations for the year shows blank spaces under the following headings. “ Homes placed under construction “, “ Homes remaining under construction as at 30th June, 1944”, “Homes commenced and completed “, and “ Homes completed “. Nine homes are shown as purchased. I ask the Minister in charge of War Service Homes whether we are to await the end of 1945-46 before knowing the target of the Department or shall we receive progress reports from time to time ? The Minister told us recently that only 31 houses had been built in the last five years. What is the latest figure?

Mr LAZZARINI:
ALP

– The War Service Homes Commission now comes under my administration as Minister for Works and Housing. There is no set target at the moment. The whole position of war service homes is being examined in the light of the target of 24,000 houses to be built this year. I hope to be able to supply more information in the course of a few days. Although the War Service Homes Commission is now under my ministerial control, it will remain, as it always has been, a separate entity.

Mr FRANCIS:

– The latest issue of Smith’s Weekly alleges that, although the Minister in charge of War Service Homes declared that all members of the fighting forces are eligible for war service homes, officials of the War Service Homes Commission in Brisbane still insist that active service overseas is a condition of eligibility? If that report be correct, will the Minister direct the Deputy Directors in all States that all members of the forces shall be eligible? Will he make a statement to the House on this matter before the recess?

Mr LAZZARINI:

– I advise the honorable member not to base questions on information that he obtains from Smith’s Weekly, because it is about the most unreliable journal in Australia, and perhaps in the world. I understand that all members of the forces are eligible to obtain war service homes, but I shall make inquiries and inform the honorable gentleman of the position. On general principle, I believe that the statement published by Smith’s Weekly is wrong.

page 4832

QUESTION

HIGH COURT

Number of Justices

Mr MORGAN:
REID, NEW SOUTH WALES

– Has the AttorneyGeneral noticed that the Victorian Government has amended the Supreme Court Act to provide for the appointment to the Supreme Court Bench of Victoria of a seventh justice, who has already been appointed ? The Premier of Victoria said that the appointment had been made at the request of the Chief Justice, Sir Edmund Herring. That gives the Supreme Court bench of Victoria seven justices for one State as against the six justices on the High Court Bench for the whole Commonwealth. Will the Attorney-General discuss with the Chief Justice of the High Court at an early date whether or not the High Court bench is able to cope with its heavy list of cases, particularly the cases in States that the Court has not visited for some time? As the appointment to the Victorian Supreme Court Bench was made by an antiLabour Government, it was not attacked on the ground that the bench was being packed by the anti-Labour press.

Dr EVATT:
Attorney-General · BARTON, NEW SOUTH WALES · ALP

– The Prime Minister dealt with this matter to some extent yesterday.The honor able member is aware that the jurisdiction of a Supreme Court of a State covers a wider field than does the jurisdiction of the High Court. The question is of such importance as to warrant its being put on the notice-paper in order that I may give it careful consideration.

page 4832

QUESTION

AUSTRALIAN ARMY

Detention Camps - Tobacco Ration

Mr ABBOTT:
NEW ENGLAND, NEW SOUTH WALES

– Will the Minister for the Army inform me whether Mr. Justice Reed is continuing his inquiry into detention camps in Australia and the Mandated Territory of New Guinea? If so, will the right honorable gentleman consider enlarging the scope of the inquiry in order to examine the manner in which Army courts-martial are conducted, and the advisability of continuing the practice of confining soldiers, who have committed purely military offences, in civil jails where they mix with some of the worst criminals in the country?

Mr FORDE:
ALP

– Mr. Justice Reed, of the Supreme Court of South Australia, nas agreed to act as the chairman of a special tribunal to conduct further inquiries, on a wider basis than before, into detention camps and the system of disciplining soldiers for offences. Some delay has occurred in obtaining the consent of other gentlemen to serve on the tribunal, but I hope to be able to make an announcement on the matter at an early date. Consideration will be given to the honorable member’s suggestions’.

Mr SHEEHY:
BOOTHBY, SOUTH AUSTRALIA

– I have just received a letter and a bulletin from a serviceman, who has underlined in ink a short paragraph referring to the supply of cigarettes and tobacco to service personnel on leave in Australia. It reads -

Complete review of methods of allotting cigarettes and tobacco to the Australian and American services on arriving in Sydney. This follows the Customs check at Mascot of cigarette cargo of returning servicemen. Americans are allowed one carton per week, and Australians are rationed to a maximum of 400 irrespective of their length of leave.

Will the Minister for the Army .confer with the Minister for the Navy and the Minister for Air with a view to correcting this anomaly?

Mr FORDE:

– ‘Consideration will be given to the representations of the honorable member.

page 4833

QUESTION

LABOUR GOVERNMENT IN GREAT BRITAIN

Mr JAMES:
HUNTER, NEW SOUTH WALES

– I direct the attention of the Prims Minister to an article in to-day’s issue ‘ of the Daily Telegraph, entitled “United States May Jib at Loans fob Attlee”. It reads -

New York, Tuesday. - American conservatives are suggesting that until British Labour policy has been clearly defined, America should delay any plan of financial and industrial assistance.

If the new British Government shows a definite trend towards “ outright Socialism “ then America’s economic foreign policy towards Britain, which promised strong support for Churchill’s regime, may be resurveyed

Will the Prime Minister inform Mr. Attlee that the Commonwealth Government will assist him in every possible way to implement the policy of the British Labour party?

Mr CHIFLEY:
ALP

– I am a great believer in every government minding its own business, and despite what the honorable member for Hunter has said, I do not think that the matter which he mentioned is one in which this Administration should interfere. Matters affecting the relationship between the United Kingdom and Australia or, say, Australia and America, properly should be dealt with by this Government, but the internal policy of a particular country is its own domestic affair, which we may well leave alone, especially as we have quite enough troubles of our own.

page 4833

QUESTION

EDUCATIONAL FILMS

Mr WHITE:

– I understand that the Royal Australian Air Force has recently acquired’ from the United States of America some hundreds of educational films. In view of the Government’s intention to set up an Office of Education, and of the importance of visual training in education, will the Prime Minister take steps to acquire those films for the Commonwealth or at least borrow them, so that they may be circulated in all States ?

Mr CHIFLEY:
ALP

– I have no knowledge of the matter to which the honorable member refers, but I shall inquire whether what he has suggested can be done.

page 4833

MATRIMONIAL CAUSES BILL 1945

Second Reading

Debate resumed from the 20th July (vide page 4353), on motion by Mr. Chifley -

That the bill be now read a second tin.e.

Mr MENZIES:
Leader of the Opposition · Kooyong

.- This bill is intensely technical but it deserves some consideration because its results, of course, will be extremely .practical. I desire merely to say a few words to supplement, in my own fashion, what was said by the Prime Minister, and to offer some observations as to the limits of this legislation.

– I am coming to that case now. I merely engaged in a general discussion of the position, which is common ground to the Attorney-General and myself, by way of explanation. I now turn to what the bill purports to do. It does not purport to deal with uniform divorce law or an Australian domicile, but it deals with two things in particular. In the first place, it deals with the institution of matrimonial causes against members of Allied forces and certain other persons who are not domiciled in Australia. I shall deal with a particular example in order to make the position more clear. Assume that an Australian girl married an American soldier while he was stationed in. Australia. Under the normal operation of the law, she would acquire a domicile in the United States of America because her husband is domiciled there. In those circumstances, no court in Australia would have any jurisdiction whatever to pronounce a valid divorce, because the jurisdiction of the courts in Australia to deal with divorce is founded on the notion of domicile within their jurisdiction. Thus, if a woman who had married an American soldier were deserted in Australia, or if some other matrimonial offence occurred in Australia which would entitle her to divorce him, she would have to go to the United States of America in order to seek that remedy. The bill provides that in those circumstances matrimonial proceedings may be instituted in Australia ; indeed, they may be taken in Australia in any State, subject to the rule established here to the effect that the divorce law to be applied shall be the law of the State in which the last matrimonial home of the parties was situated, or, failing that, the law of the State in which the marriage was celebrated.

– The only course open to the wife, in those circumstances, is to endeavour to annul the dissolution, although that would be tremendously expensive. However, we cannot legislate for everything.We are legislating now to the limits of our constitutional power in order to resolve some practical difficulties. They will not be entirely removed: I agree with the analysis of the Leader of the Opposition in that respect. But I submit that the bill should commend itself to the House.

Question resolved in the affirmative.

Bill read a second time and reported from committee without amendment or debate; report adopted.

Bill - by leave - read a third time.

page 4842

COMMONWEALTH PUBLIC SERVICE BILL 1945

Second Reading

Debate resumed from the 20th July (vide page 4356), on motion by Mr. Dedman -

Thatthe bill be now read a second time.

Mr MENZIES:
Leader of the Opposition · Kooyong

. -I regret that my colleague the honorable member for Fawkner (Mr. Holt) is unable to be present to-day. It had been arranged that he should carry on the discussion of this bill on behalf of the Opposition. . In his absence the remarks that I shall make will be brief.

In the Re-establishment and Employment Bill which passed through this House a few weeks ago, provision was made forthe establishment of a Commonwealth employment service. The object of thebill now before the House is to provide certainmatters which are incidental to theestablishment of that service. In particular it provides for taking over, and making permanent in the Commonwealth Public Service, a number of State permanent civil servants, and for the absorption into the Commonwealth temporary service, of certain temporary officers of the State civil services. In other words, to that degree the bill is a mechanical provision for the establishment of the necessary personnel on the necessary basis, for the new department or service which is to be created. Insofar as the reestablishment of service personnel and of those who have been engaged on other forms of war work, such as munitions production, is concerned, there can be little doubt that a Commonwealth employment service which will attend to the placement of such men, will be of great value. I can very well see that for some years after the war that service may not only have to be in existence, but also will have to be fairly extensive. As I understand it, the Government has made quite clear its intention not to exercise compulsory authority after the war in relation to employment. Therefore, the service to be rendered by the employment organization will be of a voluntary nature, in the sense that people will not be under any compulsion to avail themselves of it. In these circumstances, many thousands of individuals will find work without reference to the employment service. In other words, the normal channels through which men seek employment will not be clogged by this legislation. The Commonwealth employment service, as I understand it, will be supplementary to the existing channels. That being so, I put it to the Government that there must be what I would call a trial period lasting for some years after the war. At the end of that time we shall be very much better informed as to how the service is operating. We may find that the degree to which people avail themselves of the service is small and diminishing, or on the other hand, we may find that the service remains a vital and perhaps growing factor in the problem of providing employment. That makes me rather chary about building up a large permanent service for this purpose, and t hope that the Government will not be too anxious under the provisions of this bill to add large numbers of permanent officers to the Commonwealth Public Service. Temporary officers there must be in large numbers, but if we were to add large numbers of permanent State servants to the permanent list of the Commonwealth Public Service solely to establish this employment organization, we might find at the end of the tentative period, that the functions of the service were much more limited than we had expected, and that we were saddled with a substantial number of additional permanent public servants.

Mr MORGAN:
REID, NEW SOUTH WALES · ALP

– There will be plenty of work for them.

Mr MENZIES:

– There may 0r there may not be. I do not belong to that group of happy people who believe that the Public Service will disappear. I say quite plainly that having regard to past history I can see the Public Service growing in numbers and in importance ; but I am not anxious that we should add large numbers of public servants to our permanent establishments until, by experiment, as in this case, we have established that they are really needed, and will continue to be needed in future. Many State servants of great ability and experience have been brought into the Commonwealth Public Service during the last four years. Some of them at least, properly can be made members of the permanent Commonwealth Public Service; but the Minister for Labour and National Service (Mr. Holloway) should be careful, as I believe be will be, not to treat this problem necessarily as a permanent one requiring the permanent addition of large numbers to the Commonwealth Public Service. Whether the problem is to .be permanent or temporary will be revealed much more clearly by the experience of the next few years, than by any dogmatic argument at this stage.

Mr WHITE:
Balaclava

.- 1 oppose this measure because of proposed new section 81e which it seeks to- insert, in the Commonwealth Public Service Act. Sub-section l reads -

The provisions of any law of the Commonwealth providing for preference in any matter relating to the employment of discharged members of the forces shall not apply in relation to the appointment or employment of State employees under this Division.

What is the use of passing reestablishment legislation through this Parliament and expecting the community to honour its obligations to ex-servicemen, when the Government apparently is to be the first to disregard the principle of preference? This is an obnoxious provision. Surely the Government should set an example by seeking new employees from amongst men who have given their services to their country in time of war. There must be many men in the State public services who are returned soldiers of the last war or of this war. I have received letters from air crew members whose service of four or five years in the Royal Australian Air Force include tours of operations, asking whether they will be reinstated in good jobs in the Commonwealth Public Service upon their return. Some of them say that they believe that upon demobilization they will be relegated to unimportant positions. If the Commonwealth believes that certain important jobs in the Commonwealth Public Service must be given to non-returned soldiers whose services are regarded as indispensible, I should like to have the names of these gentlemen. All the ability and intellectual capacity required could be obtained from amongst the thousands of ex-servicemen who were either public servants before the war, or are anxious to become public servants. The Department of Post-war Reconstruction is notorious for the small number of exservicemen which it employs. A member of the Opposition asked how many members of the staff of that department were ex-servicemen. The answer, which gave the names of employees receiving over £500 a year, filled several pages of Hansard. The number who had served in either the last war or this war was very small indeed. Therefore, I shall not support the bill unless that proposed new section is deleted.

Mr FALSTEIN:
Watson

– I did not intend to speak on this measure, but something which the Leader of the Opposition (Mr. Menzies) has said impels me to do so. It seems to be a practice of the right honorable gentleman to direct the attention of the House to only one very minor portion of a bill, ignoring the largest portion of it. Where the right honorable gentleman erred on this occasion was in saying that these employees who are now to be confirmed as Commonwealth public servants will only be engaged in the Commonwealth Employment Service. That, of course, is not correct. It is as far from the facts as it could be. It seems to me that the right honorable member always raises matters which are as far removed from facts as is possible. The persons dealt with in the bill, .being permanent State public servants who have been working for the Commonwealth during the whole of the war period, are now to be appointed permanently to the jobs which they have occupied as Commonwealth public servants. The great bulk of their work will deal with the administration of unemployment and sickness relief benefits.

Mr Menzies:

– The honorable member seems to be infinitely better informed than the Minister who, during his secondreading speech, said what I have repeated, namely, that the object of the bill is to deal with the Commonwealth Employment Service, but no doubt he will be glad to have the honorable member’s correction.

Mr FALSTEIN:

– My information is that these employees will administer not only the Commonwealth Employment Service, but also the unemployment and sickness relief benefits. One of these men resides in my electorate, and he has approached me on the matter. He is a permanent State servant and has been National Service Officer in his district. He will be taken over by the Commonwealth to do this work and also to deal with other matters. I cannot envisage the harm which the honorable member for Balaclava (Mr. White) expects to arise from allowing persons, who have been doing this work throughout the war, and who have gained invaluable experience, to be retained in their positions. Whether they are State or Commonwealth public servants, does not make any difference. They will continue to enjoy the same salaries and benefits as previously.

Mr HOLLOWAY:
Minister for Labour and National Service · Melbourne PorteMinister for Labour and National Service · ALP

– It is true, as the Leader of the Opposition (Mr. Menzies) has said, that this bill is. just a machinery measure to transfer from the State Public Services to the ‘Commonwealth Public Service those officers, both temporary and permanent, who have been seconded, or who have volunteered, to assist the Commonwealth Government during the war. The basis of the transfer will be entirely voluntary. The men will be appointed to the Commonwealth Public Service only if they choose to transfer, and thereupon they will become permanent Commonwealth Public servants, or temporary Commonwealth employees, as they are now, in effect. The reason for introducing this bill is that some of the men who are considering whether they should transfer are anxious to know what conditions will apply to them in the Commonwealth Service. Everybody involved in the transfer will retain his existing status, and salaries, recreation privileges and superannuation rights will not be affected. The men will not be worse off in any way by reason of the transfer.

Mr Guy:

– If they do not elect to transfer, will they continue to be State employees ?

Mr HOLLOWAY:

– Yes.

Mr Menzies:

– All this is essential for the Commonwealth Employment Service f

Mr HOLLOWAY:

– Yes.

Mr Menzies:

– Perhaps the Minister may now induce his optimistic follower to apologize.

Mr Falstein:

– The ‘bill relates to other things besides the Commonwealth Employment Service.

Mr HOLLOWAY:

– The only exception is that, should’ any State officer now employed by the Commonwealth, be surplus to the requirements of the new employment service, he will be employed, as the honorable member for Watson has suggested, although he has not said so directly, to deal with ‘sickness and unemployment benefits. This bill deals especially with the staffing of the Commonwealth Employment Service.

I hope that the honorable member for Balaclava (Mr. White) will not persist in his opposition to the bill. I realize that he is anxious- to safeguard the rights of ex-servicemen. However, between 35 per cent, and 40 per cent, of the persons affected are ex-servicemen of the present war or the war of 1914-18. I assure the honorable gentleman that no provision of the bill will cancel any of the sections of the Re-establishment and Employment Act.

Question resolved in the affirmative.

Bill read a second time.

In committee:

Clauses 1 to 4 agreed to.

Clause 5 -

After Division 9 of Part III. of the Principal Act the following Division is inserted: - “Division 9a. - Appointment and Employment of Certain State Employees. “81b. - The provisions of any law of the Commonwealth providing for preference in any matter relating to the employment of discharged members of the Forces shall not apply in relation to the appointment or employment of State employees under this Division. “ (2.) In this Section, ‘member of the Forces ‘ has the same meaning as in Division 2 of Part II. of the Re-establishment and Employment Act 1945.

Mr WHITE:
Balaclava

.- Despite what the Minister for Labour and National Service (Mr. Holloway) has said, I cannot support the proposed new section 81b, the marginal note of which reads, “ Preference in employment not to apply to appointment of State employees under this Division”. Many men in Victoria who have given State service for years would be glad to transfer to the Commonwealth service. Many have been filling positions in the States in place of men who left equivalent jobs in order to serve overseas. The Government could quite readily replace those men rather than grant to them a higher status by appointing them to positions in the Commonwealth service.

Mr Falstein:

– The status in both services is exactly the same.

Mr WHITE:

-Some officers prefer the Commonwealth service in which they have a chance to rise to a higher division than in the State service. This difficulty could be avoided if the Government were prepared to adopt the course followed in New Zealand and South Africa, where rehabilitation is controlled entirely by ex-servicemen. Although many manpower officials are doing excellent work, the Government has said specifically that it will put servicemen back into their pre-war positions, andi give to them the promotions due to them; but those benefits are taken away by proposed new section 81e. It is an iniquitous proposal, and members of the committee appear to be unaware of the seriousness of the matter.

Mr Holloway:

– Does the honorable member think that these officers, 35 per cent, of whom are ex-servicemen, should be dismissed?

Mr WHITE:

– I doubt the correctness of that figure. In reply to the honorable member for Bendigo (Mr. Rankin), who asked how many men in the Department of Post-war Reconstruction in receipt of over £500 a year were ex-servicemen of the last war or the present war, a list was published in Hansard. It occupied several pages. The proportion of ex-servicemen was certainly not 35 per cent. ; I believe that it was not more than about a half of that.

Mr Holloway:

– I can assure the honorable member that the figure I have given in respect of the employment service is correct.

Mr WHITE:

– The proportion in the Department of Post-war Reconstruction was about 43 out of 167, which is not a creditable proportion for the Commonwealth Government, the largest employer in Australia. It would be discreditable even to a small employer. I move -

That proposed new section BIE be left out.

Mr ARCHIE CAMERON:
Barker · ALP

– The Re-establishment and Employment Act 1945 should apply to a State service as well as to the Commonwealth service. The Minister should give an explanation of the meaning of the proposed new section 81e. 1 should be unhappy to think that the Government now intends to act contrary to the principles of the Re-establishment and Employment Act. The proposed new section is so worded that I desire an explanation of the Government’s intentions with regard to it. Personally I do not like any part of the bill. I am not in favour of setting up a Commonwealth employment agency in Australia. If such a body is established it will be one of the monstrosities which will have, to be dispensed with in the near future by a succeeding government.

Mr HOLLOWAY:
Melbourne PortsMinister for Labour and National Service · ALP

– Proposed new section 81e does not apply to the general problem of the re-employment of ex-servicemen. It refers only to the transfer of men from State services to the Commonwealth service who have already been carrying on certain work during the war. The alternative would be that men who have been employed in State services for years, and have helped the country during the war period, would have to be dismissed.

Mr White:

– They could npt be dismissed.

Mr HOLLOWAY:

– The Commonwealth could not carry on the work of the employment service without them. The clause does not violate the principle of preference to ex-servicemen. .

Mr MCDONALD:
Corangamite

– I am not entirely satisfied with the Minister’s explanation. Hundreds of men will be discharged from the fighting services in the near future, and they, in addition to the ex-servicemen to be transferred from State services to the Commonwealth Service, should be provided with suitable employment. I agree with the honorable member for Balaclava (Mr. White) that the members of the services who are to be discharged shortly should have an opportunity to qualify for positions in the Commonwealth Service as they become available.

Mr Holloway:

– Even if 50 or 60 men are transferred under this proposal, there will be just as many vacancies to be filled on the return of servicemen to civil life.

Mr McDONALD:
CORANGAMITE, VICTORIA · UAP; LP from 1944

– Any new positions should be filled by returned servicemen.

Mr ARCHIE CAMERON:
Barker · ALP

– Will the employment service be wholly .staffed by employees taken over from the States, or will a number of new appointments be made? Will the provision in the Re-establishment and Employment Act apply in respect of all additional appointments?

Mr WHITE:
Balaclava

– The Minister has tried to show that this clause concerns only a few men employed in his department, but proposednew section 81a states -

In this Division - “ State employee “ means any person employed, in a State Public Service -

who is performing or has performed in or on behalf of the Department of Labour and National Service duties in relation to any matters with respect to which the DirectorGeneral of Man Power exercises or has exercised any function for the purpose of the organization of man power or the placing or rehabilitation of persons in employment or matters related to that organization, placing or rehabilitation or duties in relation to any trades dilution committee constituted under Commonwealth law;

who is a member of the

Forces within the meaning of section four of theReestablishment and Employment Act 1945 and who, in the opinion of the Board, would, but for his being such a member, have been performing in or on behalf of the Department of Labour and National Service the duties referred to in paragraph (a) of this definition; or

The full meaning of that provision is doubtful, according to my reading of paragraphs a and b. The Government should carry out the obligation resting upon it to give to servicemen the best possible chance of employment, but apparently it intends to waive preference in government employment.

Mr HOLLOWAY:
MELBOURNE, VICTORIA · FLP; ALP from 1936

.- This bill does not provide for the appointment of any persons, but merely for certain transfers. The Leader of the Opposition (Mr. Menzies) made it clear that this employment service is an experiment; we shall have to learn by trial and error. We do not know how many persons will have to ‘be employed in future, and the passage of this bill will not result in any new appointments. Its purpose is to make possible the voluntary transfer of State public servants to the Commonwealth Public Service.

Mr White:

– No preference is provided.

Mr HOLLOWAY:

– The honorable member for Balaclava says that he does not want these men to be dismissed; and he admits that they cannot be dismissed, because they are already permanent public servants. The provision does not mean anything like what the honorable member suggests.

Question put -

That the new section proposed to be left out (Mr. White’s amendment) stand part of the clause.

The committee divided. (The Chairman - Mr. W. J. F. Riordan.)

AYES: 28

NOES: 14

Majority . . . . 14

AYES

NOES

Question so resolved in the affirmative.

Amendment negatived.

Clause agreed to.

Clause 6 agreed to.

Title agreed to.

Bill reported without amendment; report adopted.

Bill - by leave - read a third time.

page 4848

SUPERANNUATION BILL (No. 2) 1945

Second Reading

Debate resumed from the 19th July (vide page 4282) on motion by Mr. Lazzarini -

That the bill be now read a second time.

Mr MENZIES:
Leader of the Opposition · Kooyong

.- This bill is consequential upon the Commonwealth Public Service Bill just passed. All I desire to do is to raise one query upon which I hope the Minister will be able to inform me. In the ordinary course, as I understand the position, State officers who come over to the Commonwealth Service must, before coming under the Superannuation Act, pass the prescribed medical examination. If I am wrong on that point, I should be glad to be corrected ; but that is my general impression. Under this bill it appears - and again I am subject to correction - that State officers who transfer to the Commonwealth will not be required to pass a medical examination in order to come under the Superannuation Act. Is a rule being applied under this measure different from the normal rule?

Mr LAZZARINI:
Minister for Works and Housing and Minister for Home Security · WERRIWA, NEW SOUTH WALES · ALP; LANG LAB from 1934; ALP from 1936

. - in reply - The bill provides that State public servants who transfer to the Commonwealth Public Service will not be required to pass a “medical examination as State officers who resign from the State Public Service and then join the Commonwealth Service are required to do. The bill provides that a State officer may claim all of his superannuation payments under the State scheme; and if he does that, he will start afresh under the Commonwealth superannuation scheme, being required to pass a medical examination and to contribute according to his present age group. However, any State officer who transfers to the Commonwealth without drawing his State superannuation benefits, or payments, which are also transferred to the Com monwealth Superannuation Fund, automatically comes under the Commonwealth scheme as though he had previously been a member of the Commonwealth Public Service.

Sir Frederick Stewart:

– In each case the State officer would have passed a medical examination in respect of State superannuation ?

Mr LAZZARINI:
ALP

– Yes.

Question resolved in the affirmative.

Bill read a second time and committed pro forma; progress reported.

Message recommending appropriation reported.

In committee (Consideration of Governor-General’s message) :

Motion (by Mr. Lazzarini) agreed to-

That it is expedient that an appropriation of revenue be made for the purposes of a bill for an act to amend the Superannuation Act 1922-43, as amended by the Superannuation Act 1945.

Resolution reported and - by leave - adopted.

Sitting suspended from 12.43 to 2.15 p.m.

In committee: Consideration resumed.

The bill.

Mr MENZIES:
Leader of the Opposition · Kooyong

– It is very desirable that all civil servants who are to become permanent officers should be on the same basis regarding superannuation. I should like to be assured that I understand the purpose of this bill. Previously, when a State civil servant resigned to enter the service of the Commonwealth, he collected from the State the superannuation money due to him; then he had to pass a medical examination in order to enter the Commonwealth Public Service and, having been accepted, he became a subscriber to the Commonwealth scheme according to his age group. I understand that, according to this bill, a State officer joining the Commonwealth Public Service is to be admitted without further medical examination, and the money which he draws from his State superannuation scheme is to be paid into the Commonwealth Superannuation Fund, and, for the purpose of Commonwealth superannuation, his contributions, both State and Federal, are to be treated as continuous.

Mr LAZZARINI:
Minister for Works and Minister for Housing · “Werriwa · ALP

– The right honorable gentleman’s statement of the position is correct. A State civil servant who joins the Commonwealth Service will be admitted without medical examination, provided he pays into the Commonwealth Superannuation Fund the lump sum which he received from the State Superannuation Fund.

Bill agreed to and reported without amendment; report adopted.

Bill - by leave - read a third time.

page 4849

WINE OVERSEAS MARKETING BILL 1945

Second Reading

Debate resumed from the 18th July (vide page 4178), on motion by Mr. Dedman -

That the bill be now read a second time.

Mr WHITE:
Balaclava

.- This is a small measure, the intention of which is to increase the representation of the grape-growers on the Australian Wine Board. There are at present nine members on the board, of whom seven represent co-operative and proprietary wineries and distilleries, one represents the Government, and one the Grape Growers Council. I have had the opportunity of studying the various sections of this industry which, in South Australia, is the third largest. The interest of the growers in the industry is, naturally, a large one, and they desire adequate representation on the board. The export of Australian wines increased so greatly under the Wine Export Bounty Act, which I had the honour to bring down in 1935, that before the war Australia became the second greatest exporter to Great Britain. During the war, there has been a great scarcity of wines in Great Britain. Australian wines are not advertised widely enough. At the Glasgow exhibition in 1938, I saw South African wines being exhibited as Australian. The merchants do not always classify wines according to the Dominion from which they originate, even though, at an Exhibition in London that year Australian wines won the principal prizes in all classes. Under this bill there will be no curtailment of the board’s existing powers ; the proposal is merely to increase the representation of the growers. Although the co-operative concerns and the proprietary firms do not always see eye to eye, they should recognize their corporate interest in the industry, which is best served by working together. The Opposition supports the measure, and hopes that the industry will before long, recover its pre-war state of prosperity.

Mr ARCHIE CAMERON:
Barker · ALP

– The main purpose of the bill is to increase the representation of the growers on the Australian Wine Board from one member to three. For a number of years the growers were represented by a gentleman who did a great deal of very useful work in their behalf, but, unfortunately, he died recently. Among the wine-makers there is some hostility to the proposal for the appointment of further growers’ representatives. In a letter to me on the subject one wine-maker states -

The Wine Board’s work is certainly almost entirely in connexion with the export trade in wine, and it is most unlikely that any growers’ representative would have any knowledge of this branch of the trade. It is, therefore, difficult to see what is to be gained by giving the growers three representatives instead of one.

However, even when the board is reconstituted, the wine-makers will still have a majority of two to one, which is the same as the Government enjoys in this chamber, so that they should be able to manage things to their satisfaction.

Sir EARLE PAGE:
Cowper

.- I have no objection .to the bill, nor to the enlargement of the growers’ representation on the Australian Wine Board. This board has done a very good job during the seventeen years of its existence, and has been successful in putting Australian wines on overseas markets, particularly in Great Britain. That has been made possible by the payment of a bounty, the money for which has been raised by the collection of excise duty on spirit made from grapes. France, and other European countries which have competed with us on the world’s wine market, have suffered much damage during the war. We have been fortunate to escape such damage in our wine-growing, district*, and I urge the Government to take advantage of the opportunity to place our wines on the London, Canadian and American markets before the other wine-producing countries are able to resume exports. After the last war, it was found that the world’s markets were unable to absorb all the wines which we had to offer, and some of our vineyards had to be rooted out, and production controlled. Since then, the quality of our wines has improved, as has their standing on overseas markets. We are now in a favorable position to expand the industry. The price received by Australian wine exporters is made up of the price which the wines fetch on the overseas market, plus the bounty paid on the export of wine. That is a sound principle which, I suggest, should be applied to other primary producing industries, also. The Government has made a contract with the Government of Great Britain for the sale of Australia’s exportable butter surplus, and I suggest that the return to the butter producers should be the price which the Government of the United Kingdom pays, without any deduction whatever.

Mr FORDE:
Minister for the Army · Capricormia · ALP

. - This is not a contentious measure, although it deals with an industry of very great importance to Australia. I share fully the views expressed by the honorable member for Balaclava (Mr. White), the right honorable member for Cowper (Sir Earle Page) and the honorable member for Barker (Mr. Archie Cameron), who stressed the need to advertise Australian wines abroad. Before the war, there was a considerable export of Australian wines, chiefly to the United Kingdom, but this trade was unavoidably interrupted by the war. Fortunately, with the arrival in Australia of a large number of Allied troops, there was an increased consumption of Australian wines, and this was of great assistance to the industry, which hadbeen threatened with a surplus. Honorable members will agree with the object of this measure, namely, to increase from one to three persons the number of representatives of the growers supplying grapes to wineries and distilleries. This action has been taken as the result of representations made by the Federal Grape-growers Council. The

Government believes in giving to the actual growers representation commensurate with the important place which they occupy in this industry. The representation which they had previously been granted was considered to be inadequate.

Various interests are represented on the board. The Commonwealth Government has one representative, and the co-operative wineries and distilleries two representatives. The proprietary and privately owned wineries and distilleries in New South Wales and Queensland have one representative; those in Victoria, one representative; those in South Australia, two representatives ; and those in Western Australia one representative. Under this bill the growers who supply grapes to the wineries and distilleries will be given three representatives instead of one. This action will be greatly appreciately by grape-growers generally.

Mr James:

– It will spread the representation throughout Australia.

Mr FORDE:

– That is so. After the last war many returned soldiers were settled on the land and grew grapes. Some of the land which was selected for this purpose was not suitable and exservicemen had very trying experiences. They did not receive an adequate return for their labour. It is the responsibility of the Commonwealth Government to continue to take a great interest in the wine industry, because it is necessarily a “ small man’s “ occupation. Each settler requires only a few acres of land, and this industry enables a comparatively large number of people to settle on a limited area. The Government will take into consideration the suggestions which honorable members have made in this debate regarding the necessity to give every possible encouragement to this important industry.

Question resolved in the affirmative.

Bill read a second time and reported from committee without amendment or debate; report adopted.

Bill - by leave - read a third time.

page 4850

SCIENCE AND INDUSTRY RESEARCH BILL 1945

Second Reading

Debate resumed from the 15th March, (vide page 668), on motion by Mr. Dedman -

That the bill be now read a second time.

Mr FRANCIS:
Moreton

.- The Council for Scientific and Industrial Research was established in 1925 by the Bruce-Page Government and has rendered very valuable service to Australia. For the first twelve years it devoted the whole of its activities to the solution of problems affecting the agricultural and pastoral industries. Unlike the secondary or manufacturing industries, which often are able to employ their own scientific staffs, the farmer and the pastoralist must depend upon outside assistance for the solution of any of their problems requiring scientific research. Until the Council for Scientific and Industrial Research was established, the six States employed their own scientists to examine agricultural and pastoral problems, and all engaged in the same form of research. The Commonwealth Government was able to co-ordinate their activities and have problems examined on a national basis. The results have been of far-reaching importance. For instance, citrus-growers are able to produce oranges in all States, with the possible exception of Tasmania, but citrus crops are subject to, and seriously affected by, an extraordinary number of pests.

Before the Commonwealth co-ordinated research, all the States were examining the same problems and trying to find a solution. Now these problems are tackled by the Council for Scientific and Industrial Research in co-operation with the States. An outstanding achievement was the discovery of a practical and economic method of controlling blue mould in tobacco seedlings by using the vapours of certain hydrocarbons, notably benzol and toluol. This disease was previously the most serious factor in preventing the development of a successful tobacco-growing industry in Australia. If that job had been left to the States, blue mould might still be ruining our tobacco crops. The Council for Scientific and Industrial Research, in co-operation with the States, also solved the problem of bitter pit in apples. This storage disease had cost the export trade in apples more than £100,000 per annum. The council has developed varieties of potatoes free from virus diseases which frequently caused losses of up to 25 per cent, in the potato crops. In addition, it has discovered a simple method for the control of water blister in pineapples, has introduced and acclimatized thousands of pasture and other plants, some of which show very great promise, and has achieved marked success in the control of certain weed pests. During the last twelve years the work has been conducted under the direction of a council consisting of Sir George Julius, as chairman, Dr. Richardson and Sir David Rivett. Now, Sir George Julius is about to retire, and the bill proposes to increase the personnel of the council from three to five members. The chairmen of the branches of the Council for Scientific and Industrial Research in the States are also members of the council, and other persons are co-opted from time to time when their scientific knowledge is required.

In addition to its activities in Australia, the Council for Scientific and Industrial Research has co-operated with Great Britain and our sister Dominions in solving numerous problems. The blowfly pest, in a bad year, may cause a loss of £4,000,000, and its control has proved to be a complex and difficult problem. But a solution has been found as the result of co-operation between the council and a similar organization in Great Britain. The operations of the council were extended in 1937, for the purpose of providing assistance to secondary industries, and the council established the National Standards Laboratory, the Aeronautical Laboratory and the Industrial Chemistry Section. Those activities necessitated the appointment to the council of two additional members. “Whilst I recognize the importance of secondary industries to Australia, the Government should not, when appointing extra personnel to the council, reduce the number representing primary industries. The primary industries are carried on by farmers and pastoralists who cannot possibly have on their individual properties scientists to examine their various problems. Those problems must be dealt with on a national basis. Many secondary industries have sufficient capital to enable them to employ their own scientists and specialists to advise upon methods for improving the standard of their products. In increasing the personnel of the council, the Government should have due regard to the interests of primary industries, and under no condition should they lose any of their present representation.

At the outbreak of war, the Council for Scientific and Industrial Research was conducting research into the development and improvement of fisheries in Australia. It engaged an eminent British scientist who had done highly successful work in the English Channel and the North Sea. Tackling his new job in a masterly manner, he made excellent progress in Australia, but, unfortunately, upon the outbreak of war, the vessel that he used for his investigations was commandeered by jone of the services. Aerial surveys had revealed the habits of pelagic or surface swimming fish, and the places where they breed and feed. Because of the requirements of the Royal Australian Air Force, that form of research had to be discontinued. I remind the Government that Australia imports £3,000,000 worth of tinned fish and smoked fish a year. That expenditure is not necessary because our waters are teeming with fish, and we could supply all our own requirements. At the first opportunity, the Council for Scientific and Industrial Research should resume its investigation of our fisheries. In Great Britain in war-time the fishing industry is the foremost recruiting ground for small vessels required for minesweeping, and for naval personnel and merchant seamen. Many men engaged on short-term service with the Royal Australian Navy will have to be re-established in civil life after the war. What better help could we give them than to repatriate them into the fishing industry? As a means of helping to reestablish ex-servicemen in this industry the Commonwealth is providing from £1,500 to £2,000 per capita for the purchase of fishing boats and gear.

Mr SPEAKER (Hon J S Rosevear:
DALLEY, NEW SOUTH WALES

– Order ! The honorable member is wide of the bill. It provides only for increasing the number of members of the Council for Scientific and Industrial Research, which has nothing to do with the repatriation of naval men.

Mr FRANCIS:

– I ask that the new members of the council should have regard for this acute problem, which should not be overlooked.

Mr SPEAKER:

– Order !

Mr FRANCIS:

– It is wise to increase the size of the council so that it will have a better opportunity to attend to this problem. The fishing industry needs all the help that can be given to it, in order that Australia may be provided with fish and fish by-products. We should be able to develop the industry to a degree which will make the importation of canned fish unnecessary. I commend the Government for having introduced this bill. I hope that the enlarged organization will consider the points which I have raised, particularly in relation to the repatriation of naval personnel.

– Their remuneration should be more in keeping with their long and expensive training. The existing salaries are quite out of proportion to what is paid to unskilled workers in many categories. These men are not covered by protective tribunals and do not go on strike. I agree with the right honorable member for Cowper (Sir Earle Page) that whoever may be appointed should have greater opportunities to go abroad than have so far been afforded. That need not apply only to the higher executives. In 1942,I visited the Reading University, which is one of the greatest agricultural universities in the British Empire. On the experimental farms connected with the Agricultural Research Institute, New Zealanders were learning all that they could of the best methods that could be adopted in connexion with dairying and every other branch of agricultural science. Australia has been somewhat parsimonious in not having provided sufficient opportunity for experts in this very important organization, which has done great good for Australia in connexion with primary and secondary industry to travel abroad. The opportunity to acquire knowledge in this way should be afforded to a larger number of officers. Those whose energies are devoted to agricultural and veterinary science should be enabled to visit Great Britain, particularly, so as to obtain the latest information, and thus enrich the council’s store of knowledge. Australia would be the gainer if that were done. I hope that the Minister will hear the matter in mind. The Government need only supply the wherewithal.

Mr BERNARD CORSER:
Wide Bay

.- This short bill is the least that could have been introduced in the interests of the further development of a necessary science in this young country. Recently, in moving the adjournment of the House, I pointed out how much further other countries had advanced, compared with Australia, in the application of science to industry. I paid tribute to the Council for Scientific and Industrial Research, which is responsible for such activities in Australia. Its efforts have been circumscribed because of the small appropriation it has had. It is hardly worthwhile occupying time in discussing a measure that has given the Minister so little thought, and proposes to make only slight progress in the matter of scientific research. Much of our land has not demonstrated what it can produce, because it has not been tested. In Canada, there are 200 demonstration centres, in which scientists are achieving valuable results. I regret that greater facilities are not to be provided for the development of our possibilities. We shall have to keep abreast of other countries if we wish to progress. I hone that the Minister will soon take action which will enable this country to avail itself fully of the application of science to our problems. That is essential, and it is within our reach. All that is needed is to appropriate the necessary money.

Question resolved in the affirmative.

Bill read a second time, and reported from committee without amendment or debate; report adopted.

Bill - by leave - read a third time.

page 4855

AUSTRALIAN NATIONAL AIRLINES BILL 1945

Motion (by Mr. Dedman) - by leave - agreed , to -

That so much of the Standing Orders be suspended as would prevent the resolution agreeing to the third reading of the Australian National Airlines Bill 1945 being rescinded forthwith, and the third reading of the bill being made an order of the day of a later hour this day.

Motion (by Mr. Dedman) agreed to -

That the resolution agreeing to the third reading of the Australian National Airlines Bill 1945, agreed to on the 31st July, be rescinded, and that the third reading of the bill be made an order of the day for a later hour this day.

Message recommending, appropriation reported.

In committee (Consideration of GovernorGeneral’s message) :

Motion (by Mr. Dedman) proposed-

That it is expedient that an appropriation of revenue and moneys be made for the pur- poses of a bill for an act to provide for the establishment and operation of national airline services by the Commonwealth and for other purposes.

Mr FADDEN:
Darling DownsLeader of the Australian Country Party

– I oppose the motion and object to the appropriation of Commonwealth moneys for the purposes of this bill. I do so for many and varied reasons, but for the fundamental reason that the payment of these moneys would contribute towards the socialization of industry in this country. I recognize that considerable sums will be required by the Government if it intends to implement its policy of socialization and give effect to the pledge which has been signed by every member of the Ministry and its supporters; but members of the Opposition are totally opposed to the policy of socialization of industry, and favour private enterprise and individual effort. There is no good reason why the efficiently conducted and well-organized services of the private aviation companies in Australia should be taken over as a government enterprise, particularly having regard to the sorry history of past ventures in governmental control of industries throughout Australia. The Minister for Air (Mr. Drakeford), in his secondreading speech on the bill, said that, far from offering any apology for the bill, the Government was proud of it. Honorable members would have been amazed if the Minister had tendered any apology on that score, and if, after the announcement by the Deputy Prime Minister (Mr. Forde) in November last, the Government had not introduced such a measure. We should have been amazed if the pressure from outside organizations which dictate to the Government had not forced it to stand up to the unqualified pledge which all members of the Labour party have signed. The words of that pledge are -

I also pledge myself to actively support and advocate at all times the party’s objective - the socialization of industry, production, distribution and exchange.

I shall show how sinister is the policy of the Government. From the time when Labour assumed office on the 7th October, 1941, the infiltration into the nation’s normal life and social structure of the doctrine and practice of socialization be gan. Some Labour members have drawn attention to the necessity for the introduction of socialistic ideas, whilst others have not admitted their implementation. Members of the Government, being the victims of pressure from outside this Parliament, have realized: that the war-time preoccupation of the people afforded a good opportunity for the implementation of the Labour party’s policy. Honorable members on the Opposition side have repeatedly sounded warnings to the people as to what the Government was doing under the cloak of war-time necessity. The Government did not openly declare itself on the occasion when it should have done so, namely when seeking a mandate from the people at the general elections in 1943. I and others warned the people that a vote for the return of the present Government would be tantamount to a vote for the policy of socialization of industry. As a result of those declarations, various responsible members of the Ministry gave undertakings and issued pledges which should have placed the position beyond doubt. Indeed, their assertions were of such a nature, and were accepted so implicitly, that the people disregarded the warnings of the Opposition. The Government no doubt received thousands of votes from people who otherwise would not have voted for then] but who accepted the assurance given that socialization would not be implemented while tho people were pre-occupied with the war. The late Prime Minister replied to my assertions by saying -

The Labour Government has not socialized Australia and does not intend to do so, because we are at war.

On the 16th August, 1943, he was equally emphatic when he said - .

The Commonwealth Government has no power to socialize anything, even with its wartime powers.

Three days later the late Mr. Curtin declared -

The Commonwealth Parliament had no power to socialize anything. His Government would not, during the war, socialize any industry.

The Attorney-General (Dr. Evatt), the legal member of the Government, and a senior Minister, in opening his general election campaign at Hurstville on the 4th August, 1943, denied charges made against the Curtin Government of having a policy of socialization. He said -

The Commonwealth Constitution gave no general power to nationalize industry. There was a limited power over expropriation, subject to just compensation. The power of expropriation was limited to specific Commonwealth purposes, but there was no general power to nationalize industries. Therefore, the charge of socialization against the Curtin Government had no foundation.

That statement was used in election advertisements on behalf of the Labour party. There was a photograph of the Attorney-General in a newspaper advertisement bearing the caption, “ Dr. Evatt ends an argument “. In the same election speech, the Attorney-General said -

There would be more room for private enterprise and business initiative after the war than ever before.

I produce a lengthy telegram which I received from the Minister containing the following significant statement: -

Innuendoes that Mr. Curtin aimed at socialization was an instance of false political propaganda.

– I argued in favour of an elected convention and urged that the people should be allowed to vote on each proposal separately. Let us examine the merits and demerits of Statecontrolled enterprise and private enterprise. Quite apart from the moral aspect of the matter, or the rejection by the people of the Government’s referendum proposals, let us recall the sad history of State enterprises. Take the Commonwealth Shipping Line, for example. In a period of five years it showed an accumulated deficit of £2,506,788, and what remained of the fleet was sold when the Government finally realized the impossibility of making it pay. In New South Wales, eight government undertakings showed a loss of £1,205,000. In Queensland, between 1915 and 1929, losses were incurred in 18 out of 21 State enterprises. Eventually, there was a net loss of £4,500,000 out of the £5,000,000 of borrowed capital with which these enterprises were begun. On that capital our children will pay interest for a great many years. In the year before the war, Aus-“ tralian railways showed a combined total loss of £2,700,000. Notwithstanding this, the Minister for Air asked the public to believe that the Government can make a success of private airlines. The Minister for Air (Mr. Drakeford) further stated that had Australia depended upon private enterprise to organize the country for war, we would not have accomplished one fraction of the marvellous war effort achieved in this grave crisis.

The Deputy Prime Minister (Mr. Forde) has recently been advocating the introduction of British capital to Australia, so that he is, evidently, a convert to private enterprise. However, on the 7th July, 1941, he advocated the nationalization of the Broken Hill Pro prietary Company Limited. This it what he said -

The best way to inspire confidence in the public and to allay suspicion, if this Government is really serious in its desire to put Australia’s war effort into top gear is for the Government to assume control of the Broken Hill Proprietary Company Limited.

At the time he was making that demand, the company’s manager, Mr. Essington Lewis, was on loan to the Department of Munitions to carry out important war work, and he has remained in that job, exercising even greater authority under the present Government. However, it was not until May, 1943, that the Minister for Munitions (Mr. Makin) was moved to pay this tribute -

For our munition factories and the equipment of our fighting forces, steel has been supplied at cost price. This patriotic gesture has been withheld from the public too long.

When the Government failed in its efforts to obtain a formula and supply for certain armour plating, the company placed the best of its men at the department’s disposal. A right formula was discovered and the armour plate was being obtained at one-sixth of the cost at which it could be bought from overseas. 1 have been in close association with Mr. Essington Lewis (Managing Director of the Broken Hill Proprietary Company Limited, who is also Director-General of Munitions) and I know him for the great merit of his work for Australia. No man has served hU nation more worthily or with greater ability.

On the 5th February last, the late Prime Minister (Mr. Curtin), addressing the secondary industries conference in Canberra, said -

During the war, the Government has received magnificent support and co-operation from industry . . .

The Government looks to private enterprise to make a major contribution to production and development, and thereby to employment in the post-war years.

Discussing the subject of civil aviation, the late Prime Minister, in his policy speech in 1943, said -

The Government pays tribute to the magnificent work performed by all connected with civil aviation under extreme difficulties- and in: the face of many dangerous hazards . . The Government is determined in the post-war period, that civil aviation will be highly developed, not only as a source of useful employment, but as a valuable factor in its policy of decentralization

Recently, the chairman of the Colonial Sugar Refining Company Limited, Mr. E. R. Knox, said that more than 1,500,000 18 and 25 pounder shells -were produced at the company’s factory from May, 1940 to March, 1944; that the plant was erected at the company’s expense; that the first 134,474 shells manufactured were given to lie Government free of cost and the other shells were supplied at cost, without profit. Contrast that with the assertions of members of the Government, who have denounced private enterprise and declared that we should have been in a sorry plight had war production been left to private enterprise. In legislating for political control of banking and the socialization of airways, the Government is paving the way for the Communists. It cannot be denied that communism is growing in Australia at a dangerous rate, arid nowhere more rapidly than in northern Queensland. Communism is thriving because there is a definite association between its policy and the fundamental policy of the Labour party. The Communists realize that they can attain their objective only by associating with a party which is akin to themselves. The similarity between the objectives of the two parties cannot be denied or ignored. The objectives of the Australian Communist party, as stated in January, 1945, provide for a post-war programme including nationalization of the banks and big monopolies, the nationalization of the coal mines, and the nationalization of air, sea and rail transport. The Government has effectively nationalized the banking system in a mean and miserable way, not by paying compensation to the banks as provided in the Constitution, but by usurping their functions and strangling their activities. In this way it has put into effect the first plank of the Communist party’s platform. It is now engaged upon the nationalization of interstate airlines. Certainly, it proposes to pay compensation, but we have yet to see whether the compensation will be adequate. It also remains to be seen whether the Government’s action will be held to be constitutional by the High Court.

Mr Dedman:

– Is that a threat on behalf of the airlines?

Mr FADDEN:

– It is not a threat. However, I know that those in control of the airlines are sensible people, and it does not seem likely that they will take the Government’s proposals lying down. They know that in most instances in which people have been game enough to take this Government to court they have won, because Australian and British justice is of a kind that ignores political considerations. As I have said, there is a very dangerous association between the policy of this Government and the policy of the Communists, and the efforts of the Communists will be encouraged by legislation of this kind. The people of Australia, apparently, will have to accept this legislation in spite of the verdict which they gave at the recent referendum. It behoves every responsible Australian who believes in British fair play, and in the democratic way of life, to see that the majority decision of the people is respected in the framing of legislation which will affect this and succeeding generations.

Mr HARRISON:
Wentworth

– In my opinion, the Government is making a political “grab”. I see no justification for its decision to nationalize or socialize the interstate airlines of Australia. If the private companies had not provided an efficient service, had made excessive profits or had been regarded by the people with suspicion, the Government might have been able to justify exercising some measure of control over them. But that is not the position. The private airlines in Australia hold the world record for reliability, adherence to schedules, and freedom from accident. This is not an ordinary business in which the Government can profitably intervene. The successful conduct of air services requires immediate decisions, the acceptance of an element of risk, and an adventurous spirit. Those qualifications are not to be found in the Public Service. It is not the responsibility of public servants to take the risks that are associated with the development of airlines. For those reasons I contend that the Government is pursuing a course which must retard the development of civil aviation in Australia for half a century. During an earlier debate on this bill, the Minister for Post-war Reconstruction (Mr. Dedman) said -

I anticipate that honorable members opposite will attack it from a political party angle.

That statement is most interesting, because this hill was conceived in a party political atmosphere. Why the Minister should endeavour to divert public attention by casting that aspersion on the Opposition, I cannot understand. In the first place, caucus directed the Government to introduce this bill. Therefore, the measure was conceived in a party political atmosphere. As numerous speakers on this side of the chamber have pointed out, the Government repudiated the solemn undertaking, given by the late Prime Minister at the last election, that the Government would not attempt to socialize industry in war-time. In addition, this bill has been introduced in complete defiance of the wishes of the people, as expressed at the referendum. However, I shall not elaborate those matters, because my colleagues have already dealt with them thoroughly.

The validity of the bill is extremely doubtful, and in all probability will be tested in the High Court. Consequently, I was interested to read the report of a speech by the Minister for Transport (Mr. Ward) in the Sydney Domain last Sunday. Incidentally, the accuracy of this report has been confirmed to-day by the Sydney Morning Herald and the Daily Telegraph. The Minister said -

We can add to the High Court-

The CHAIRMAN:

– Order! The honorable member will not be in order in discussing the personnel of the High Court.

Mr HARRISON:

– I pointed out that the validity of this bill was doubtful, and would probably be tested in the High Court. After the people had rejected the Government’s referendum proposals, the Minister for Air (Mr. Drakeford) introduced this legislation for the purpose of socializing the interstate airlines of Australia by indirect means. As the High Court will almost certainly determine whether the bill is ultra vires the Constitution, I contend that I am in order in referring to the remarks of the Minister for Transport regarding that tribunal. His observation was made in such a way as to anticipate a decision adverse to the Commonwealth. Obviously, the Minister’s words were uttered in an endeavour to influence the

High Court to give a certain decision which might be distinctly unjust.

Mr Sheehy:

– Does the honorable member believe that the High Court would be so influenced?

Mr HARRISON:

– No. But, in my opinion, the Minister attempted to influence the court, and for that reason his remarks should receive wide publicity.

The CHAIRMAN:

– The reason why the Minister for Transport made that statement is of no concern to this committee.

Mr HARRISON:

– The Minister for Post-war Reconstruction claimed that the people are interested in this measure. I ask him to be more precise, and define the “ people “. Did not the late Prime Minister, on behalf of the Government, promise the people that the Government would not nationalize or socialize industry in war-time? Did not the people reject the Government’s referendum proposals? Is not the Government now endeavouring to usurp the powers which the people refused to grant to it at the referendum? Last Sunday, the honorable member for Dalley (Mr. Rosevear) addressed some people in the Sydney Domain, and the Daily Telegraph attributed to him the following words: -

The Federal Government had been retarded in its planning for post-war years by the defeat of the referendum, and what the Governcould not achieve directly it would have to do indirectly. Mr. Rosevear said the Government had found it could nationalize the airlines and alter the banking system without legal obstacles.

Perhaps the honorable gentleman w*« thinking also of an alteration of the personnel of the High Court. Now the honorable member for Dalley holds the important office of Speaker, and is also a prominent member of caucus. When a gentleman of his standing in the Labour party declares that “what the Government could not achieve directly, it would have to do indirectly “, a’ll this talk about not socializing industry in war-time is so much poppycock. Caucus must have smiled when the late Prime Minister gave that assurance. This bill is the negation of the basic principles of democracy, arid at the next election the people will not forget that the Government repudiated its solemn promise

The former Director-General of Civil Aviation, Mr. Corbett, who was the chairman of the Inter-departmental Committee on Civil Aviation, wrote to me as follows : -

But planswere made in co-operation with the airline companies for extensive additions to the aircraft fleet and extensive new centres within 24 hours’ flying time of any other place in Australia and for daily exchange of mails by the same means. To make this possible and effective, one of the largest companies placed orders in the United States of America for over £2,000,000 worth of the most modern aircraft, for which there are prospects of some early deliveries. These plans were made in early 1943 and, of course, were placed before the Government. There ensued two years of indecision and hopeless delay, largely in the hope that the referendum would permit nationalization. As you know, this failed and at the end of 1944 the Government decided to nationalize, in spite of the people’s verdict. The whole set-up is now faced with the prospect of further delay at this critical time when orders should’ have been placed for more aircraft, and at a time when, given more vigorous and effective Ministerial action in 1043, Australia might well have met the recent international conference with her plans well in hand, and quite possibly with some potential overseas services ready for operation. However, because we could not make up our own minds, notwithstanding we had the opportunity and the means were within reach if vigorous action had been taken promptly and at the right time, the Minister went to an international air conference not knowing what his own country was going to do.

Two years of indecision and hopeless delay, in an industry which requires split-second decisions! Possibly that is one reason why Mr. Corbett’s report has not been tabled. It may also be the reason why the Government has refused to table the report of the inter-departmental committee, which consisted of some of the most influential departmental heads ever assembled to carry out an inquiry.

The CHAIRMAN:

– Order ! The hon orable member’s time has expired, but, as no other honorable member has risen, he may take advantage of the second period permitted under the Standing Orders.

Mr HARRISON:

– Perhaps the committee revealed in its report matters of such importance that, in the face of it, no government would have dared to introduce this proposal. In the cold words of the Chairman of the committee, we have a statement that the Minister had to go to the International Air Conference “ not knowing what his own country was going to do “. After two years of indecision and delay, the Government acted against the recommendations of its competent advisers. That is why we are opposed to the socialization of the air transport industry. We cannot permit the dead hand of government to bear down upon it. Elasticity is necessary in such an organization. Airways are not like the Commonwealth railways service, in which it does not really matter whether schedules are maintained or not. Civil aviation cannotbe compared with such undertakings as the Australian Commonwealth Line of Steamers, which sustained a loss of about £6,650,000 during the last war, the Queensland government-controlled industries, which sustained a loss from 1915 to 1929 of about £4,447,000, or the State industries of New South Wales, where the dockyard sustained a loss of about £400,000. The airlines industry is modern and vital, and we cannot afford to take chances with it. It must have the maximum of efficiency. Even at this late hour, the Government should heed our representations. If inefficiency creeps into the organization, and if preference is to be given to Government supporters in making appointments within the organization, this Government will have an experience similar to that of the Roosevelt Administration in America when it adopted tactics like those now being employed. I recall travelling on the Commonwealth trans-continental railway, when the engine had breakdown after breakdown and finally had to be replaced by a locomotive from Forrest, causing the train to be stranded overnight. That is characteristic of government control. The result would not be so free from tragedy if an aircraft broke down. The safety of airline services is of major importance. Without efficient control of the industry, the Government would experience endless trouble and would finally reap a whirlwind which would sweep it to destruction.

Many statements have been made by Ministers and their supporters regarding the Government’s expenditure of money for development of air services. Recently I visited a long chain of airfields, and I was impressed by the failure of the Government to construct modern all-weather runways. I also noticed the types of buildings on the aerodromes, and the only modern structures which I saw had been built by private airline companies. Government statements have implied that the development of airfields and installations is the responsibility of the airline companies. It would be just as foolish to claim that dockyards and other shipping facilities should be provided by the shipping companies, or that roadways should be built by motorists. The Government has an obligation to provide landing fields and other essential installations for the carriage of passengers and freight, and to provide for safety and the maintenance of schedules. Private enterprise has proved itself to be capable of satisfying such demands, but, wherever Government interference occurs, schedules are interrupted, the costs to the unfortunate taxpayer mount, general inefficiency and bungling occur, and chaos is the ultimate result. I ask the Minister to withdraw this appropriation in the interests of the efficient operation of our air services.

Mr WHITE:
Balaclava

.- The proposed expenditure of millions of pounds to nationalize airlines is quite unnecessary at this time, when taxation should be reduced and governmental controls should be eased. Australian aviation will suffer a great setback as the result of the Government’s action. I say this by virtue of my long experience of aviation. Does the Government pretend that the airline companies are inefficient? They are not. Having travelled recently on American airlines, I say that Australian services are equally as good although America has had more experience of air transport than’ any other nation. As further evidence of the efficiency of our air services, I refer to the report issued by the Department of Civil Aviation for the year 1940-41. It states -

The regular airline services have been continued on all main routes and oversea routes during the war, notwithstanding that a large number of the civil aircraft have been taken over for Royal Australian Air Force use entirely. This maintenance of air communication on all main routes has enabled mails to bo expedited and those engaged in war-time activities to be transported without loss of time. Both these services have been a valuable contribution to the war effort . . . Not withstanding this pressure it says much for the organization of the civil companies and the skill and care of the pilots that not a single accident involving death or serious injury has occurred on any regular airline route for the second year in succession, and during this year over 67,000,000 passenger miles have been flown. This in itself is a valuable contribution to flying morale and sets a standard of achievement.

Some Ministers and supporters of the Government have said that the Government proposes to take control of civil aviation because the industry is becoming monopolistic.

Mr Calwell:

– So it is.

Mr WHITE:

– I thought that the Minister, who has become airminded lately, would have more knowledge of the facts than to say that. I exploded that fallacy last night, when I cited the names of small airline operators who were given their contracts by the Lyons Government because it definitely did not want air services to become monopolistic. Unlike railways, which run on fixed routes, air service charters can be cancelled and given to other companies if there is any fear of a monopoly occurring. This Government seeks to excuse its socialistic misdeeds on a pretext, which, as it is well aware, has no foundation. It proposes to give into the hands of the Commonwealth the worst form of monopoly - a government monopoly. No government undertaking can be as efficient as private enterprise. The Minister was unfair enough, during his speech on the second reading of the bill, to attack private enterprise and say that, had the country depended upon .private enterprise for the success of the war effort, it would have accomplished little. The president of the Associated Chamber of Manufacturers has replied to that statement in the following terms: -

The statement made by Mr. Drakeford, as reported “ but had this nation depended on private enterprise to organize the country for war, we would not have accomplished one fraction of the marvellous war effort achieved “, is a mean and misleading statement. Acknowledgments have been made by various Ministers, frequently and emphatically, of the value they place on the organizing work carried out by representatives of private industry as Controllers and Directors of War Departments - the organization of our heavy industries for war production was in being and in process when the prospects of war were scoffed at by members of our present Government. Without the organization carried out by private enterprise, the war effort of Australia, on the scale achieved, would have presented a problem which, in all probability, would have been incapable of solution.

The Minister’s statement was in marked contrast to what the late Prime Minister (Mr,Curtin) said to a deputation of manufacturers’ representatives on the 5th February. He said -

I express the gratitude of the nation for the superb contribution which industry has made to our total war capacity … It has had the effect of enabling this country to achieve in war a degree of efficiency which we needed if we were to survive the attacks which had been made on us.

Nothing was said then about the socialization of airlines.

Railway minds have dealt with this subject. Too many members of the caucus are railwaymen. It is no exaggeration to say that about half a dozen Ministers are ex-railwaymen. The difference between railways and air services is as marked as the difference between a horse and jinker and a railway service. To-day, it takes seventeen and a half hours to travel by rail from Melbourne to Canberra, whereas the Atlantic can be flown from east to west in seventeen hours, and from west to east in less than half that time, on account of the favorable winds. One can fly from Australia to New Zealand and hack again in the time which it takes us to travel from Melbourne to Canberra.

Mr Calwell:

– That is making it too hot.

Mr WHITE:

– I travelled on the first trip to New Zealand in ten hours, and the passage can now be made in about seven hours each way. That shows how unenlightened Ministers are on the subject of air transport.

The CHAIRMAN:

– Order ! I ask the honorable member to deal with the appropriation.

Mr WHITE:

Minister for Transport. The constitution of the High Court has no connexion with this measure.

Mr BERNARD CORSER:

– But it does arise out of the powers referendum. The people then voted against the nationalization or socialization of airlines. They would not trust the Government to operate intra-state airways; therefore, the appropriation cannot embrace all airlines, as the Government would wish. The Constitution is clear on the point. The intention of the Government is to deprive shipping companies and private persons of any interest they may have obtained in airline companies that have given a service that is unsurpassed elsewhere. Rates and fares for air transport are lower, and the charge for the air-mail service is cheaper and covers a wider area than in any other country. I hope that the Government will yet realize that the will of the people must prevail, and that those who have developed this service will be permitted to continue it. The Government should devote its attention to the many utilities which, to-day, are starved by lack of attention and money, and give to land transport generally, what is essential. The railway systems should be modernized. Road transport should be developed, airfields should be improved, and harbour and wharfage facilities should be increased. Those who have established air services from which Australia has derived so much advantage should be encouraged to place themselves in a position to compete with overseas interests in air ‘ transport to and from Australia. Governments in Australia have never been able to compete successfully with the great overseas shipping companies in the transport of passengers, goods or mails. The airline companies have been anticipating trade developments and they should receive all possible encouragement in extending the services which they are well qualified to provide. Large sums have already been expended by the private companies in providing for services on the lines desired by the Government, and it is unnecessary to authorize the appropriation of public funds for services upon the provision of which the private airline operators have already laid out money. The Government could expend public money to better advantage in many other directions, particularly in the provision of the houses of which the people stand sorely in need. The Government would not be justified in depriving the airline companies of their business because they have made a success of it. If the Government persists in its present proposals, it will probably make a failure of the undertaking. In every respect the air transport industry is already under close government control. It is controlled up to the point at which the planes become airborne. The Parliament should not appropriate money to enable the companies to be deprived of their industry.

Mr WHITE:
Balaclava

.- The money proposed to be appropriated could be expended in many better ways than in establishing and operating airlines under government control. The Government could, for instance, subsidize air transport to great advantage, in view of the fact that many of the difficulties of people in the outback parts of Australia art due largely to transport difficulties. If air fares were subsidized to enable the present companies to make a substantial reduction of the rates charged for air travel, great benefit to Australia would result.

The people generally have few opportunities to visit other parts of the world, and the people of Great Britain have insufficient opportunities to visit Australia. If the fare by air between Australia and Great Britain were about £20, instead of £200, which was the rate prevailing before the war, a large number of Australians would be able to afford to travel overseas by air. The man in the street would then have an opportunity to go abroad, and the contacts thus made would lead to improved intra-Empire and international understanding. Persons overseas who may contemplate migrating to Australia often abandon the idea because they regard the venture as too hazardous; but, if low fares for air travel operated, they could make quick trips to this country in order to decide whether to remove their families to Australia. Therefore, the adoption of my suggestion that the Government should subsidize the airline companies, to enable low fares to be charged, would promote migration. More aircraft could be employed than at present, and thus employment could be found for the many young pilots who would be available to assist in the operation of the increased services which could be provided. The encouragement of tourist traffic between Australia and overseas countries would be preferable to buying out the private undertakings which are already under rigid government control. This supervision already applies to air routes, stopping-places, fares and freights’, time-tables, frequency of services, rates paid to companies for the carriage of mails, safety of aircraft, training of crews, flying operations, air navigation, and, in fact, everything having to do with discipline and control. The airline operators could not be regulated to any greater degree than at present. Money could be expended to great advantage in the improvement of airports, but, merely to give effect to a political dogma, the Government is prepared to waste the money of the taxpayers in purchasing the interests of the companies now providing the service.

Question resolved in the affirmative.

Resolution reported and - by leave - adopted.

Bill read a third time.

page 4866

COMMONWEALTH INSCRIBED STOCK BELL 1945

Second Reading

Debate resumed from the 19th July (vide page 4281), on motion by Mr. Chifley -

That the bill be now read a second time.

Mr FADDEN:
Darling Downs Leader of the Australian Country party

– There is nothing in the bill to which the Opposition takes exception. It is purely a machinery measure containing certain amendments to the Commonwealth Inscribed Stock Act 1915- 1943, to. provide for the widening of the exemption from- stamp duty now applying to Commonwealth loans; alteration of the conditions of acceptance of national savings stamps in payment of loan subscriptions; and facilitating the transfer of stock held on account of estates of deceased persons. Opportunity is also being taken to eliminate certain unnecessary provisions in the principal act, and to make minor amendments which experience has shown to be desirable. Exemption from stamp duty is already given by section 52a of the act to documents relating to the purchase, transfer or transmission of Commonwealth securities, but documents relating to the conversion or redemption of securities are not accorded this protection.

Provision is also made for documents, cheques and drafts relating to the payment of interest to be exempted from stamp duty. Where payment of interest is made by Commonwealth cheque, payment of stamp duty does not arise; but where Commonwealth securities are lodged with the trading banks for safe custody, arrangements are made for the banks to pay the interest on the securities on behalf of the Commonwealth. It is obviously unfair that drafts and other documents used by the banks in making such payments should be liable to stamp duty. The amendment of section 52a is necessary to give the full exemption from stamp duty which was always intended to be given in respect of such transactions. The bill- is of such a nature, and the amendments are so desirable, that the Opposition advances no objection to its speedy passage.

Question resolved in the affirmative.

Bill read a second time, and reported from committee without amendment or debate; report adopted.

Bill - by leave - read a third time.

page 4866

NATIONAL DEBT SINKING FUND BILL 1945

Second Reading

Debate resumed from the 19th July (vide page 4282), on motion by Mr. Chifley -

That the bill be now read a second time.

Mr FADDEN:
Leader of the Australian Country party · Darling Downs

, - This bill provides for tie making of certain amendments to the National Debt Sinking Fund Act in accordance with legislation already passed. Two points deserve comment. The proposed amendment provided for in clause 4 will validate the practice which has been followed for years of calculating sinking-fund payments on overseas debt in Australian currency. It is surprising that so much time has elapsed without validating this practice, which is apparently contrary to the original intention when the legislation was passed. The second point refers to the position of certain of the States under -this legislation. It is opportune to call attention to the fact that some of the States have been the greatest war profiteers. They are in a very good financial position, mainly as a result of Commonwealth war expenditure. It is anomalous that the Commonwealth should be paying large sums in interest to these States, which have invested their cash surpluses, to the tune of millions of pounds, in war loans. At the same time, the Commonwealth has ‘ been extremely generous to the same States in regard to their sinking-fund payments, as I pointed out when discussing this matter in December last. I believe that there should be a complete review of the financial arrangements between the Commonwealth and the States, including the provision for the reimbursement of the States in connexion with the uniform tax provisions. At present, there are many anomalies, and injustice is being suffered by the poorer States, whilst the richer States are being treated overgenerously. The poorer States, in effect, have their revenue pegged, and have not prospered from war expenditure in the same way as have some of the other States. There is nothing in the bill itself to which objection can he taken, as it is purely a machinery measure.

Question resolved in the affirmative.

Bill read a second time, and reported from committee without amendment or debate; report adopted.

Message recommending appropriation reported.

In committee (Consideration of Governor-General’s message) :

Motion (by Mr. Lazzarini) agreed to -

That it is expedient that an appropriation of revenue be made for the purposes of a bill for an act to amend the National Debt Sinking Fund Act 1923-1934.

Resolution reported, and - by leave - adopted.

Bill read a third time.

page 4867

COMMONWEALTH ELECTORAL (WAR-TIME) BILL 1945

Assent reported.

page 4867

PAPERS

The following papers were presented : -

Arbitration (Public Service) Act - Determinations by the Arbitrator, &c. - 1945 - Nos. 42 and 43 - Australian Journalists’ Association.

National Security Act - National Security ( General ) Regulations - Order - Evacuation of area.

Northern Territory Acceptance Act and Northern Territory (Administration) Act - Ordinance - 1945 - No. 5 - Medical Practitioners Registration.

House adjourned at 4.52 p.m.

page 4867

ANSWERS TO QUESTIONS

The following answers to questions were circulated: -

Alien Farmers

Mr Anthony:
RICHMOND, NEW SOUTH WALES

y asked the AttorneyGeneral, upon notice -

Since the 7th October, 1941, how many aliens or naturalized subjects have been permitted to purchase or lease land under the National Security (Land Transfer) Regulations ?
How many are unnaturalized and what are the numbers of each nationality?
How many are naturalized, and what was the ‘ nationality and the number of each nationality of such persons before naturalization ?
– How many of such transactions relate to agricultural, pastoral and farm lands, and how many to city and town property?

Dr Evatt:
ALP

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

From the 7th October, 1941, to 30th June, 1945, the number of applications, under the National Security (Land Transfer) Regulations, for consent to purchase or lease land (including applications to acquire a legal title) and the number granted, refused, &c, during that period and pending are as follows: - Number of applications received, 0,047 ; number of applications granted, 3,507 ; number of applications refused, 1,234; number of applications abandoned or for some reason not proceeded with, 1,052; number of applications pending, 714. The regulations prohibit absolutely the purchase of land by enemy aliens and during the period in question the only aliens who were required to obtain consent under the regulations to the purchase of land were aliens who were subjects of countries in enemy occupation. The regulations ceased to apply to occupied countries in Europe as from various dates between the 17th October, 1944, and the 18th May, 1945, and since the last-mentioned date it has not been necessary for friendly aliens to apply under the

National Security (Land Transfer) Regulations for consent to purchase land, though it is still necessary for aliens and also British subjects to obtain consent of the Treasury under the National Security (Economic Organization) Regulations. 2, 3 and 4. It is not possible, without an examination of each of about 7,000 files to give the information asked for in these questions. About twelve months ago, however, a careful dissection was made of the applications received during the twelve months ended the 30th September, 1944. I append particulars of this dissection. These particulars may, I think, be regarded as fairly typical of the applications received over the whole period from 7th October, 1941, to 30th June, 1945 - except insofar as they relate to refugee aliens, a class first dealt with on 28th October, 1942.

Sydney “ Daily Telegraph “ : Waste of Newsprint.

Mr.Forde. - With regard to the question asked by the honorable member for Adelaide (Mr. Chambers) concerning the supplement called “ Week for Women “ issued by the Sydney Daily Telegraph, the Minister for Trade and Customs has advised that the newsprint rationing scheme does not go so far as to lay down a policy to be adopted by newspaper proprietors in selecting matter to be published by them. The principal conditions which apply when a newsprint allocation is granted to a newspaper proprietor are that it shall be used in the production of the newspaper and shall not be exceeded. If the subscribers to the Daily Telegraph take the same view of this supplement as the honorable member, I would not say that it will be a great success. After all, newspaper pro prietors cannot afford to publish matter which has no attractions for their subscribers.

Rayon Manufacture

Mr Archie Cameron:
ALP

n asked the Minister for Post-war Reconstruction, upon notice -

Has the Commonwealth entered into any agreements with rayon-making interests; it so, what are the terms of the agreement?
Has permission to build rayon factories or works been granted; if so, what is the estimated cost of the buildings?

Mr Dedman:
ALP

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

The Commonwealth has entered into an agreement with Burlington Mills Limited for the lease and subsequent sale of the Rutherford Munitions Factory. Burlington Limited will manufacture rayon cloth from yarn. The terms of the agreement provide for a rental of 91/6d. a square foot per annum for each square foot of floor space taken over by the company, but total not to exceed £2,000 per annum.
Apart from the above, I am not aware of any building projects of any magnitude approved for the purpose of making rayon goods. It would mean an extensive check of all building permits issued throughout the States to be precise on that point.

Commonwealth-ownedShips.

Mr Beasley:
ALP

y. -On the 24th July, the honorable member for Wimmera (Mr. Wilson) asked me a question regarding the number of Commonwealth-owned ships which are being operated on behalf of the Commonwealth Government by Australian shipping companies, and the remuneration received by the companies for their services. I referred the honorable member’s question to the Minister for Supply and Shipping, who has supplied the following answer : -

Eight of the river-class ships constructed to the order of the Commonwealth Government are now in commission. These vessels are under the control of the Commonwealth Government Ships Chartering Committee. The committee operates the vessels on behalf of the Commonwealth through Australian shipping companies, which act as owner’s agents, and attend to such matters as victualling, crew, Ac. They are paid a fee of £1,000 per annum for these services. An agency fee of £10 10s. per port is also payable for each Australian port at which vessels call other than the home port. For calls at overseas ports, agency fees prescribed by the Institute of Chartered Ship Brokers are payable.

In addition, commission is paid for loading of cargo, varying according to the type of cargo, from a fixed fee of £10 10s. for loading a cargo of coal or coke, to 2½ per cent. on freight for general cargo. Fees for discharging cargo also vary according to the type of cargo, and the number of ports at which cargo is discharged.

In addition to the above vessels, there is one small coastal vessel which has been acquired by the Commonwealth by purchase from the owners, and which is being operated on the coast by the Shipping Control Board through a shipping company which acts as agent. The agents are paid a fee of 6 per cent. on freight earnings, this fee covering their remuneration both for the management of the ship and the handling of cargo.

Some other coastal vessels, which were Acquired originally for use by the services, may shortly be released for commercial employment, and these vessels will also be operated by the Shipping Control Board through agents.

Commonwealth Departments : New Establishments; Accommodation in Capital Cities.

Mr Archie Cameron:
ALP

asked the Prime Minister, upon notice - 1. (a) How many Commonwealth Government departments have been created and established since the 1st January, 1942? (b) What are the names or titles of these departments ? 2. (a) What was the number on the staff of each of these departments on the 30th June, 1943? (b) What was the number on the 30th June, 1945?

What was the total number of Commonwealth public servants on the following dates: 30th June, 1941; 30th June, 1943, and 30th June, 1945?
What was the total cost of all Commonwealth departments on the following dates: 30th June, 1939; 30th June, 1941; 30th June, 1943, and 30th June, 1945?

Mr Chifley:
ALP

y. - The information is being obtained, and a reply will be furnished to the honorable member as soon as possible.

Mr Conelan:

asked the Minister for Works and Housing, upon notice -

What was the rented space occupied for office purposes in each capital city for: (a) Defence services; (b) the Department of Post-war Reconstruction ; (c) other civilian departments, at the 30th June, 1945, compared with the 30th June, 1944, and the 31st December, 1944?

Mr Lazzarini:
ALP

i. - This is a matter for the Minister for the Interior, who is obtaining the desired information.

Life Insurance: Warrisk Charge

Mr Archie Cameron:
ALP

n asked the Treasurer, upon notice -

Does the Government approve the action of insurance companies which charge a special war risk to the holders of life policies volunteering or called up for service outside Australia?
Under what authority is this done?
What is the extent of the practice?
Does the Government propose to take any remedial action; if so, what action?

Mr Chifley:
ALP

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

Premium to cover the special war risk is charged by life insurance companies only on those policies which were issued after September, 1939. All life offices voluntarily waived any war conditions on those policies in existence at the outbreak of the war, and, with the exception of three small companies, those companies which did not voluntarily waive any restrictions due to aviation undertaken as part of war service, did so at the request of the Commonwealth Government.
The insurance offices have presumably taken this step in the general interest of policy-holders. The voluntary concessions to pre-war policies have meant that the life offices have paid claims totalling several hundreds of thousands of pounds, for which they were not legally liable under their policy contracts. Most of the life offices are mutual societies and their action in waiving restrictions on policies issued before the war, in effect, spreads the cost of war risks over the general body of policy-owners, generally by way of a reduction in bonuses.
On all policies issued during war-time, there is a clause limiting to a return of premiums’ paid with 3$ per cent, compound interest the benefit payable if death results from war service outside Australia or from aviation in or outside Australia. In general, the offices enforce these clauses, although for risks other than aviation they will generally waive the clause in consideration of the payment of an extra premium commensurate with the risk.
It is considered that a person effecting a new policy should be made aware of the terms of any restrictions placed on the policy regarding war service and, for this reason, suitable provision was recently made in the Life Insurance Bill.

Textile Industries: Stocks - Clothes Rationing Scale

Mr Bernard Corser:

r asked the Minister representing the Minister for Trade and Customs, upon notice -

Is it a fact, as claimed -hy the Federal Clothing and Textile Advisory Council, that goods to the value of 2,000,000 coupons, representing 2,750 orders, are held up by eleven of the larger wholesale distributors in Sydney and Melbourne t
If so, is this due to the lack of retail coupon deposits?
Has he any information to give to the House regarding the serious shortages of clothing for sale by retailers in Queensland?
Has any action been taken to rectify the position, especially in view of the fact that large numbers of servicemen are being released and are urgently in need of outfits to enable them to return to civil life?
Will he consider the making of a general reduction over the whole clothing ration scale or the issuing of more coupons to the public, instead of dealing with the coupon rating of specific items of clothing?

Mr Forde:
ALP

– The Minister for Trade and Customs has supplied the following answers : - 1 and 2. Representations for coupon assistance to traders were recently made to the Rationing Commission who have now established a more generous basis for giving assist ance, providing relative information given by the trader concerned justifies assistance Publicity to this effect has been given through trade journals.

At present some civilian garments such as shirts, suits, men’s headwear, corsetry, and certain types of footwear are in short supply in all States.
Continual effort is being made by the Rationing Commission, in association with other departments concerned with the supply and distribution of goods, to improve the position in respect of the clothing goods that are in short supply. Unfortunately, substantial improvement has not been possible, due primarily to the man-power position in some sections . of the clothing and textile industry.
Recent relaxations in the coupon scale of wool and knitted goods should result in a substantial increase in the total coupon spending power of consumers. The desirability of making a general reduction over the whole coupon scale was examined by the Rationing Commission but is not considered feasible at present.

Newspaper Advertisements.

Mr Forde:
ALP

e.- On the 26th July the honorable member for Martin (Mr. Daly) asked whether the Commonwealth Prices Commissioner had approved an increase of rates for classified advertisements appearing in the whole or part of the metropolitan daily press of the Commonwealth. I have since conferred with the Minister for Trade and Customs and ascertained that one newspaper has been permitted an increase of rates, and that the Prices Commissioner’s approval followed a full investigation of all necessary data.

Australian Army: RELEASES.

Mr Forde:
ALP

– On the 28th June, the honorable member for Bendigo (Mr. Rankin) raised on the adjournment the matter of calling up youths of eighteen, and in particular, one Ewin Hambley. I have had inquiries made into this case and now supply the following information for the honorable member: -

B. Hambley attained the age of eighteen years on the 17th February. After an unsuccessful appeal for exemption from military service on the grounds of personal hardship he was made available for military service as he was not regarded as a bona fide rural worker. He was, in fact, employed with a firm of canister makers until June, 1943, then transferred to his father’s1 charcoal supply business in Bendigo, and, early this year, went to his uncle’s farm at Dingee to assist in harvesting operations. His uncle has a well-developed farm which is worked by himself and his three sons, one of whom was released under the special man-power release schema. The farm referred to in the representations was purchased by Ham.bley’s father approximately nine months ago in conjunction with his brother, whose established farm adjoins it. It was proposed that when developed, the farm would he worked by the lad, E. B. Hambley, and his cousin on a share basis, but a lot of developmental work would require to he done before the property could he brought into a fully productive state. At the hearing of Hambley’s hardship application, which was refused hy the magistrate, it was admitted that the lad was not an experienced rural worker, having previously spent only holidays on his uncle’s farm. It was also admitted that since his transfer to the farm he had spent only part of his time at the farm, and the remainder at Bendigo. In this connexion the lad’s civil registration records were not transferred from Bendigo to the area in which the property is situated until after the hardship application was heard on the 27th March.

Cite as: Australia, House of Representatives, Debates, 1 August 1945, viewed 22 October 2017, <http://historichansard.net/hofreps/1945/19450801_reps_17_184/>.

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House of Representatives 1 August 1945

HOUE OF MEETING

GALVANIZED IKON

Mr BREEN:CALARE, NEW SOUTH WALES

Mr CHIFLEY:Prime Minister · MACQUARIE, NEW SOUTH WALES · ALP

QUESTION

TOBACCO

Mr ADERMANN:MARANOA, QUEENSLAND

Mr FORDE:Minister for the Army · CAPRICORNIA, QUEENSLAND · ALP

QUESTION

MASCOT AERODROME

Mr WHITE:BALACLAVA, VICTORIA

Mr BEASLEY:Minister for Defence · WEST SYDNEY, NEW SOUTH WALES · ALP

Mr White:

Mr BEASLEY:

Mr White:

Mr BEASLEY:

QUESTION

LOCAL GOVERNMENT AUTHORITIES

Mr WILSON:WIMMERA, VICTORIA

Mr FORDE:ALP

QUESTION

TEXTILE INDUSTRIES

Mr BARNARD:BASS, TASMANIA

Mr FORDE:ALP

QUESTION

SURVEY OF RATIONED GOODS

Mr SHEEHAN:COOK, NEW SOUTH WALES

Mr FORDE:ALP

QUESTION

LAND SETTLEMENT OF EX-SERVICEMEN

Mr FRANCIS:MORETON, QUEENSLAND

Mr CHIFLEY:ALP

QUESTION

PIG MEATS

Mr FULLER:HUME, NEW SOUTH WALES

Mr FORDE:ALP

QUESTION

DUTCH TROOPS IN AUSTRALIA

Mr MENZIES:KOOYONG, VICTORIA

Mr CHIFLEY:ALP

Mr White:

Mr CHIFLEY:

Mr Menzies:

Mr CHIFLEY:

QUESTION

HOUSING

Mr DALY:MARTIN, NEW SOUTH WALES

Mr LAZZARINI:Minister for Works and Housing · WERRIWA, NEW SOUTH WALES · ALP

QUESTION

WAR SERVICE HOMES

Mr WHITE:

Mr LAZZARINI:ALP

Mr FRANCIS:

Mr LAZZARINI:

QUESTION

HIGH COURT

Mr MORGAN:REID, NEW SOUTH WALES

Dr EVATT:Attorney-General · BARTON, NEW SOUTH WALES · ALP

QUESTION

AUSTRALIAN ARMY

Mr ABBOTT:NEW ENGLAND, NEW SOUTH WALES

Mr FORDE:ALP

Mr SHEEHY:BOOTHBY, SOUTH AUSTRALIA

Mr FORDE:

QUESTION

LABOUR GOVERNMENT IN GREAT BRITAIN

Mr JAMES:HUNTER, NEW SOUTH WALES

Mr CHIFLEY:ALP

QUESTION

EDUCATIONAL FILMS

Mr WHITE:

Mr CHIFLEY:ALP

MATRIMONIAL CAUSES BILL 1945

Second Reading

Mr MENZIES:Leader of the Opposition · Kooyong

Dame Enid Lyons:

Mr MENZIES:

Dr Evatt:

Mr MENZIES:

House of Representatives
1 August 1945

Mr BREEN:
CALARE, NEW SOUTH WALES

Mr CHIFLEY:
Prime Minister · MACQUARIE, NEW SOUTH WALES · ALP

Mr ADERMANN:
MARANOA, QUEENSLAND

Mr FORDE:
Minister for the Army · CAPRICORNIA, QUEENSLAND · ALP

Mr WHITE:
BALACLAVA, VICTORIA

Mr BEASLEY:
Minister for Defence · WEST SYDNEY, NEW SOUTH WALES · ALP

Mr WILSON:
WIMMERA, VICTORIA

Mr FORDE:
ALP

Mr BARNARD:
BASS, TASMANIA

Mr FORDE:
ALP

Mr SHEEHAN:
COOK, NEW SOUTH WALES

Mr FORDE:
ALP

Mr FRANCIS:
MORETON, QUEENSLAND

Mr CHIFLEY:
ALP

Mr FULLER:
HUME, NEW SOUTH WALES

Mr FORDE:
ALP

Mr MENZIES:
KOOYONG, VICTORIA

Mr CHIFLEY:
ALP

Mr DALY:
MARTIN, NEW SOUTH WALES

Mr LAZZARINI:
Minister for Works and Housing · WERRIWA, NEW SOUTH WALES · ALP

Mr LAZZARINI:
ALP

Mr MORGAN:
REID, NEW SOUTH WALES

Dr EVATT:
Attorney-General · BARTON, NEW SOUTH WALES · ALP

Mr ABBOTT:
NEW ENGLAND, NEW SOUTH WALES

Mr FORDE:
ALP

Mr SHEEHY:
BOOTHBY, SOUTH AUSTRALIA

Mr JAMES:
HUNTER, NEW SOUTH WALES

Mr CHIFLEY:
ALP

Mr CHIFLEY:
ALP

Mr MENZIES:
Leader of the Opposition · Kooyong

Sir FREDERICK STEWART:
PARRAMATTA, NEW SOUTH WALES · UAP

Dame ENID LYONS:
Darwin

Dr EVATT:
Attorney-General and Minister for External Affairs · Barton · ALP

Mr MENZIES:
Leader of the Opposition · Kooyong

Mr MORGAN:
REID, NEW SOUTH WALES · ALP

Mr WHITE:
Balaclava

Mr FALSTEIN:
Watson

Mr HOLLOWAY:
Minister for Labour and National Service · Melbourne PorteMinister for Labour and National Service · ALP

Mr WHITE:
Balaclava

Mr ARCHIE CAMERON:
Barker · ALP

Mr HOLLOWAY:
Melbourne PortsMinister for Labour and National Service · ALP

Mr MCDONALD:
Corangamite