20th Parliament · 1st Session
Mr. BEALE (Parramatta - Minister for Supply) [12.5 a.m.]. - I do not think that the powerful statement that was made by the Minister for Labour and National Service (Mr. Holt) requires much amplification. The Government was extremely reluctant to close Glen Davis, but circumstances made it inevitable. It is probable that, from an economic point of view, the plant should never have been at Glen Davis, but on the other side of the Capertee Valley where there are bigger deposits of shale. In 1935, it was estimated that for an expenditure of £600,000 Australia would be able to get 6,000,000 gallons of petrol and 16,000,000 gallons of fuel oil a year at market prices. Instead, this country has invested over £5,000,000 in the venture and petrol has been produced at the rate of less than 3,000,000 gallons a year at a cost of more than 5s. a gallon. So from an economic point of view the venture has been fantastic.
The key to the situation is the inability or unwillingness of the miners at Glen Davis to mine sufficient shale. If sufficient shale had been fed into the retorts the venture might have had an opportunity to pay its way. In 1949, Senator Ashley went to Glen Davis and warned the miners that they must increase the output of shale. At that time they were producing about 3 tons for each man-shift. Shortly after his visit the production rate fell to 2.8 tons a man-shift and it has been falling ever since. To a very substantial degree, the responsibility for the position at Glen Davis has to be laid at the door of those who have declined to produce sufficient shale to keep the retorts going at full blast. A proposal was made in relation to what is known as “ long wall “ mining, which might have assisted production. The suggestion was put to Senator Ashley, but he did not see fit to act on it because he knew that it would make no ultimate difference.
About £10,000 a week is being lost in the production of petrol at Glen Davis. In 1947, when the Labour Government was in office, the output of petrol from Glen Davis was 4,000,000 gallons; in 1948, it was 3,100,000 gallons; in 1949, 2,600,000 gallons; and in 1950, 2,400,000 gallons. By 1951 the annual production had fallen to 1,400,000 gallons. The petrol was costing over 5s. a gallon. The petrol produced in 1951 represented . 023 per cent, of Australia’s consumption, or less than a day’s supply. The Government realized that it would have to take certain action unless it was to accept the proposition that this disastrous and ruinous enterprise should be continued so that the townspeople would not be disturbed. The Government did not reach a decision on this matter wantonly or without thought for the welfare of the people concerned. I appreciate that the people in the district did not want their settlement to be broken up. For fifteen months the Government tried to interest other industries in the venture. It tried to interest the State Government of New South Wales. It tried to adapt the venture to suit the purpose of various government departments, but that was found to be impossible. Many private industries were invited to put forward propositions. All our efforts to keep the township going failed because people were not sufficiently interested. Certainly no one in the oil industry was interested because they knew what a disastrous economic proposition it had been. So, tenders were called. But not one tender was received for this venture as a going concern. The offer to establish it on a co-operative basis was also rejected. Now, fifteen months later, a further proposition is made to the House, but that proposition has only to be stated to be shown to be unacceptable. In those circumstances, no government, however reluctant it might be to injure the people at Glen Davis in their livelihood, dare, having regard to the public interest, to keep the works going. Consequently, at long last and reluctantly, the Government has decided to close the project down. Generous offers are being made to help those who live in the district, but, as the Minister for Labour and National Service has said, we expect to receive some co-operation from those persons, who, we hope, will not make of this matter a cause for industrial disturbance. Naturally, the Government’s readiness to be generous and helpful to them must be dependent upon the willingness with which they are prepared to co-operate with it.
Question resolved in the affirmative.
page 1167
The following papers were presented : -
Elections - Statistical Returns in relation to the Senate Elections, and the General Elections for the House of Representatives, 1949, for the several States and Terri- tories.
Public Service Arbitration Act - Determinations - 1952 -
No. 37 - Transport Workers’ Union of Australia.
No. 38 - Professional Officers’ Association, Commonwealth Public Service. Seat of Government Acceptance Act and Scat of Government (Administration) Act-
Ordinance - 1 952 - No.6 - National Memorials.
Regulations - 1952 - No. 10 (Building and Services Ordinance).
House adjourned at 12.12 a.m. (Friday).
page 1167
The following answers to questions were circulated : -
Broadcasting.
– The answers to the honorable member’s questions are as follows : -
– The answers to the honorable member’s questions are as follows : -
The details requested are not available normally, but I shall endeavour to obtain the information and will furnish it to the honorable member.
ald asked the Minister representing the Minister for Trade and Customs, upon notice -
– The Minister for Trade and Customs has furnished the following answers to the honorable member’s questions: -
The information the honorable member seeks is not available.
In this regard it is pointed out that the Com monwealth Government has no jurisdiction over the reproduction of this material in Australia and the only means of preventing its publication and sale is by concerted legislation by the various States.
e asked the the PostmasterGeneral, upon notice -
– The answer to the honorable member’s questions is as follows : -
Tenders are under consideration by Department of Works and Housing and questions concerning tenders and completion dates have been referred to that department for reply. It is expected that a reply to the honorable member will be furnished by the Minister for Works and Housing.
l asked the Treasurer, upon notice -
What progress has been made on the problem of double taxation as a result of the recent visit of American taxation experts?
– The answer to the honorable member’s question is as follows : -
At the discussions which recently took place between United States and Australian officials, draft clauses for incorporation in any agreement which may be reached between Australia and the United States in respect of income tax, estate duty and gift duty were prepared. The Commissioner of Taxation has furnished a report of the discussions, including the draft clauses mentioned. The report is receiving consideration and it is expected that au early decision will be made.
s asked the Minister for Supply, upon notice -
– The answers to the honorable member’s questions are as follows : -
Note. - Concerning imported cotton matetrials; in late 1951 at conferences and by correspondence the Australian manufacturers were informed of total requirements, and were invited to indicate the quantities they could manufacture and supply during 1952. Overseas orders were not placed until Australian manufacturers had been allotted the maximum quantities which at that stage they were prepared to offer to the Commonwealth. Some cotton materials are not manufactured in Australia at all.
Departmentof Supply.
Mr.Ward asked the Minister for
Supply, upon notice -
What was the number of employees attached to the transport services operated by his department at the time the present Government took office ?
What is the number at present employed?
Will he furnish information regarding the cost of engaging private hire transport services, showing particularly the annual mileage run and the cost per mile in each year since the Government took office in 1949?
e. - The answers to the honorable member’s questions are as follows : -
In the Department of Supply, transport and stores services are combined under one management, and common administrative and accounts staffs serve both sections. It is not possible to divide these staffs accurately between “Transport” and “Stores”, and, accordingly, the total employment figures for the Stores and Transport Branch are given. In December, 1949, when the present Government took office, a total of 2,541 persons was employed, including 874 drivers. The number at present employed is 2,481, including 792 drivers. Statistics are not maintained of the annual mileage, and the cost per mile for private hire transport services. However, the total costs of hiring these services were as follows:- 1950, £236,200; 1951, £218,621.
Government Loans and Finance.
Mr.Ward asked the Treasurer, upon notice -
Will he furnish details regarding loans raised during the terms of office of the Curtin and Chifley Labour Governments, including the amount realized in each instance?
Will he furnish similar details in regard to loans raised since the present Government took office in 1949?
– The answers to the honorable member’s questions are as follows : -
Import Restrictions.
– On the 20th May the honorable member for Fremantle (Mr. Beazley) asked the following question : -
Can the Treasurer say why the Government, in implementing its import restriction policy, decided to honour letters of credit issued before the commencement date of the restrictions although no actual orders for physical goods had been placed, but to prevent the fulfilling of actual orders placed before that date without financial transactions having been carried out, although in some instances the goods had already been manufactured and the British manufacturers faced heavy loss through the termination of the contracts? As the Government’s precipitate action in curtailing imports has caused a national crisis and a weakening of the entire British economy, when docs the Treasurer envisage the restrictions being removed and what action is the Government taking to ensure that it will not be necessary to re-impose them?
The answer to the honorable member’s question is that the Government has taken no decision to recognize for import licensing purposes letters of credit established before the 8th March last but against which no actual orders had been placed at that date. What the Government did decide was to permit the importation of all goods which had been ordered and for which provision had been made for payment under irrevocable letters of credit opened by an Australian importer in favour of a supplier in another country. The honorable member will understand that in such cases the supplier can automatically receive payment for the goods on fulfilling the conditions of the irrevocable letter of credit and there is, therefore, no point in refusing to permit the importation of goods covered by such credits.
The honorable member for Fremantle also asked me when I envisaged the restriction being removed and what action was the Government taking to ensure thatit will not he necessary to reimpose them. The Government -will review and relax the restrictions as soon as it considers that Australia’s international reserves permit such action but on this point I would refer the honorable member to my recent financial statement in which I covered the matter more fully.
Timber.
Mr.Riordan asked the Minister for Territories, upon notice -
Has the Government entered into an agreement with a gold-mining company to exploit the timber resources of a certain area in New Guinea?
If so, what is the name of the company?
Who are the principal shareholders of this company and where do they reside?
Will this company pay income tax on the profits made from the timber undertaking?
Is it proposed to manufacture plywood as well as producesawn timber?
If plywood is to be manufactured, will the plywood and sawn timber be sold on the Australian market; if so, what will be the effect on the production of plywood in Australian ‘ plywood mills ? 7.Is plywood in short supply in Australia?
How will the wages to be paid to the workers employed by this New Guinea enterprise compare with the wages paid to workers employed in similar work in Australia?
k. - The answers to the honorable member’s questions are as follows : - 1 and 2. The answer is contained in a bill before the House.
Guinea Gold No Liability, Brookman Building, Grenfell-street, Adelaide, South Australia.
Robert S. Fox, 708 Joshua Green Building, Seattle, Washington, United States of America.
The Gold Fields American Development Company Limited, 70 Pine-street, New York City, United States of America.
Oroville Dredging Company Limited, Lloyds Bank Building, 55-61 Moorgate, London, England.
Placer Development Limited, 675 West Hastings-street, Vancouver, B.C., Canada.
Gold Fields American Development Company Limited, c/o New Consolidated Goldfields Limited, 49 Moorgate, London, England.
Cite as: Australia, House of Representatives, Debates, 29 May 1952, viewed 22 October 2017, <http://historichansard.net/hofreps/1952/19520529_reps_20_217/>.