House of Representatives
11 August 1964

25th Parliament · 1st Session

  1. House of Representatives
  2. 25th Parliament
  3. 1964

The Clerk. - I desire to inform the House of the unavoidable absence of the Speaker. In accordance with Standing Order No. 14, the Chairman of Committees will take the chair as Deputy Speaker.

Mr. DEPUTY SPEAKER (Mr. Lucock) thereupon took the chair at 3 p.m., and read prayers.

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COMMISSION TO ADMINISTER OATH

Mr DEPUTY SPEAKER:

– I have received from His Excellency the Administrator a commission authorising me, during any absence of the Speaker, to administer to members of the House the oath or affirmation of allegiance. I now lay the commission on the table.

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ELECTORAL

Divisions of Angas and Parramatta - Returns to Writs: Members Sworn

Mr DEPUTY SPEAKER:

– I have received returns to the writs which Mr. Speaker issued on 8 th May for the election of members to serve for the electoral divisions of Angas in the State of South Australia and Parramatta in the State of New South Wales, to fill the vacancies caused by the resignations of the Hon. Alexander Russell Downer and the Hon. Sir Garfield Edward John Barwick respectively. By the endorsements on the writs it is certified that Geoffrey O’Halloran Giles and Nigel Hubert Bowen have been elected.

Mr. Geoffrey O’Halloran Giles was introduced and made and subscribed the oath of allegiance as member for the division of Angas, South Australia.

Mr. Nigel Hubert Bowen was introduced and made and subscribed the oath of allegiance as member for the division of Parramatta, New South Wales.

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DEATH OF JAWAHARLAL NEHRU

Sir ROBERT MENZIES:
Prime Minister · KooyongPrime Minister · LP

– Since we met last, India has lost a very distinguished Prime Minister and the world has lost a most famous and significant statesman. Mr. Nehru was the political founder of the Republic of India and its Prime Minister for many years. It was a remarkable experience to sit with him, as I did many times in a Prime Ministers’ Conference, and to realize some of the things that lay behind his presence and gave such weight and significance to whatever he said.

I well remember Sir Winston Churchill saying of him on one occasion in conference that he had conquered many things, including fear itself. This was profoundly true. It was from time to time quite possible to disagree with him. But it was never possible to deny him the respect due to a man who may properly and without any exaggeration be described as one of the makers of modern history.

His international activities are well known and will be well remembered. But one of his most remarkable achievements, somewhat less well known, was in the domestic affairs of India. In this House we all know of the numerous problems that arise in the course of the government of Australia. Yet every one of us was born into a community long versed in parliamentary democracy - a community in which the general nature of democratic government and the organisation of parties and the spirit of the community had long been established. But India, when it came to its sovereign independence, was a great group of principalities, communities and localities totalling something like four hundred millions of people. It was a gigantic task to produce out of all those elements some political structure and coherence on a democratic basis. It is, I think, proper to believe that nobody but Mr. Nehru could have performed it.

If democratic self-government persists in India - and we all hope and believe that it will - it will be primarily due to the life work of Jawaharlal Nehru. He had been through every conceivable political adversity, but he retained his standards. He achieved not only wide fame in his own country, but immense moral authority. To hundreds of millions of people he was India.

His successor, Mr. Shastri, to whom we would all wish to extend our warmest good wishes, has inherited an immense task. He will be strengthened in the performance of that task, not only by a pride in his predecessor, but by an understanding that the things for which Mr. Nehru stood must be carried on so that in due course the nation of India will develop its resources, its standards and its strength.

On the last occasion on which I had very long personal discussions with Mr. Nehru, he was deeply affected and, indeed, vexed by the attack made by China along the Indian frontier. After all, nobody had done more than he had to keep up his bridges with China and to interpret, so far as he could, China to the rest of the world. He seemed to me to be not unnaturally depressed by what he regarded as a failure.

Yet, I feel bound to say here, as I said to him then, that he had made great contribution to a general understanding of the proposition that while international tolerance still remains a matter of prime importance, it does not involve an acceptance of aggression or a refusal to assert the rights of all nations to live their own lives in their own way.

I am taking the unusual course of moving this resolution because I think it should be made clear to the Government and people of India that there is an understanding in Australia of their problems, a profound sympathy for them in their tremendous loss and a resolution to cultivate a spirit of friendship and encouragement.

I move -

That this House records its sincere regret at the death of Jawaharlal Nehru, Prime Minister of India, places on record its admiration for his devotion to and achievements on behalf of the people of his own country, and for his unceasing and positive interest in international affairs, expresses to the people of India its profound regret at the loss they have suffered, and tenders its deep sympathy to his relatives.

Mr CALWELL:
Leader of the Opposition · Melbourne

– Mr. Deputy Speaker, the Opposition desires to pay its tribute to the late Pandit Nehru, who was one of the few really great men of our time. Born of a wealthy family and educated at leading

English universities, he qualified as a lawyer; but he deserted his opulent surroundings and embraced the cause of Indian freedom. The strength and influence that he possessed in world affairs owed nothing to military might or force of arms. He was a man who had gone to gaol for his convictions. He was a man who had learned the strength and influence of moral force. His strength certainly was a moral one, and he wielded it powerfully and devotedly in the cause of world peace. He was unique among the statesmen of his time in the degree to which his words and ideas carried weight with all the nations of the world, including those infinitely more powerful than India.

Nehru was, above all, a great and dedicated Socialist. He recognised Democratic Socialism as both the moral imperative and the practical necessity for India. Like his illustrious predecessor, Gandhi, Nehru defended the policy of neutralism for India. He was criticised for that. He was attacked because of his stern defence of that policy which was the only policy that India could have pursued in the light of her poverty, her caste system, all her differences of dialect and all the rest. He had no patience with people belonging to prosperous and advanced Western democracies who would say, unctuously: “It is the job of governments to try the free enterprise solution to help individuals help themselves “. To him that was the counsel of despair and irrelevant to the problems of his vast country, with two-thirds of its inhabitants hungry all of their lives, from the cradle to the premature grave. The experiment of Democratic Socialism in India is succeeding, although the pace of progress is painfully slow. It is imperative that the experiment should succeed, because failure in India undoubtedly would mean the end of democracy and the hopes of democracy almost everywhere in the world. The fact that democracy has survived in India is due almost entirely to this one man whose memory we honour today. The measure of bis success is the smoothness with which the new Administration of Mr. Shastri has been able to follow his.

Mr. Nehru was invited by the late Mr. Chifley to come to Australia. Unfortunately he never came. That is our misfortune. Nehru once said that the only epitaph he wanted was that he was one who loved India and who had been given in return the love of the Indian people in abundant measure. But his range was not restricted to India. Although he ranks as one of modern India’s two greatest statesmen, he belongs to all humanity.

Mr McEWEN:
Minister for Trade and Industry · Murray · CP

– I should like to associate the Australian Country Party with the motion moved by the Prime Minister (Sir Robert Menzies) and the speeches made by him and the Leader of the Opposition (Mr. Calwell). Mr. Nehru was truly one of the very great men of our day. Surely no man could have assumed a more difficult burden or greater obligations than the establishment of the government of a country such as India is and was at the time that he assumed these tremendous responsibilities. It is a tribute to his force of character and his sagacity that he was able to attain a stable government in a country tormented by so many problems, as India was and has been tormented. He established a truly democratic form of government in a country where there was no uniformity of thinking, and it is a miracle that he achieved such a personal authority as he did. I think no head of state had a greater personal authority than Mr. Nehru had; yet at the same time he sustained the substance as well as the appearance of a true democracy.

It might well have been enough for him to have confined his activities to thinking through the problems of his own country. He did this as well as any man could, but at the same time he made his contribution during his day to world affairs, and made it in such a manner that it was heeded. His views were not always agreed to, but, as the Prime Minister has said, they were always respected because of the sheer integrity of the man. I believe it is proper that in this exceptional case the Parliament should express itself in the way that is proposed.

Question resolved in the affirmative, honorable members standing in their places.

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DEATH OF THE RIGHT HONORABLE SIR JOHN GREIG LATHAM, G.C.M.G

Sir ROBERT MENZIES:
KooyongPrime Minister · LP

– Mr. Deputy Speaker, I have now to refer to the death of Sir John Latham,, which occurred very recently. He was well known in this House over a long period of years. He had a remarkable record of public service. I do not propose to go into the details of his public career, because they are pretty vividly in mind. But it is quite clear that his death represented a very great loss to this nation. True, he had reached a great age and had reached it without any failure of his remarkable faculties or any diminution of his constant desire to render service not only to Australia but to the world.

His career was indeed a remarkable and versatile one. He was a philosopher and a teacher. He was a distinguished member of the Bar. He was a notable Attorney-General of the Commonwealth. Under very special circumstances he became our diplomatic representative in Japan. He was the Leader of the Opposition during a period of great political difficulties. He was a great political fighter, but at all times he commanded the respect and, as I believe, the affection of his political opponents.

Some time after he went out of politics he became a highly successful Chief Justice of the High Court of Australia. He bad a mind which was at once keen, analytical, eager and constructive. After he retired from the position of Chief Justice he continued in many ways, and through many organisations, to contribute his ability, his experience and his wisdom to good causes in our country.

In the course of his life, he sustained grievous losses, grievous family losses, of a kind which would quite readily have broken a lesser man. But his spirit was never broken and his enthusiasm never diminished. It is more than commonly appropriate that in this Parliament, in which he was a great figure, we should place on record some tribute, however inadequate, to his character and his work.

On the personal side, I may be permitted to say that I speak of him with close knowledge, for he was one of my teachers when I was studying the law. I saw a lot of him in the course of practice at the bar and I had the rare privilege of succeeding him as the member for Kooyong and as the Attorney-General of Australia. I mention these matters, not merely with some feeling of personal satisfaction, but because they enabled me at all stages to get to know someone out of the ordinary run, a man whose immense record I have endeavoured sketchily to recall, a man who made a contribution to Australian development and life which will, I believe, not be forgotten. I move -

That this House expresses its deep regret at the death of the Right Honorable Sir John Greig Latham, G.C.M.G., formerly a member of this House for the division of Kooyong, Minister of the Crown, Leader of the Opposition and Chief Justice of the High Court of Australia, places on record its appreciation of his long and distinguished public service and tenders its profound sympathy to bis relatives in their bereavement.

Mr CALWELL:
Leader of the Opposition · Melbourne

– John Greig Latham, whose passing we mourn, and to whose memory we desire to pay tribute, was the most distinguished of a family of brothers all of whom, in various ways, achieved’ prominence and distinction, and who made their own contributions to the well-being of the Australian community. They were the sons of a man who had nothing in the way of worldly goods with which to endow bis children. He was a tinsmith. In later life the father of Sir John Latham became secretary of the Tinsmiths Union in Victoria.

By his own perseverance and determination, and by other qualities which he had inherited, John Latham won scholarships which took him through the University of Melbourne. Each new goal he set himself was another challenge to great achievement, and in the course of his life he aquitted himself brilliantly in many fields - as a lawyer, as a parliamentarian, as a Minister of State, as a diplomat and later, and last of all, as Chief Justice of the High Court of Australia.

Even after leaving his high and exalted office Sir John Latham neither retired nor restricted his great range of activities. The close of one phase seemed always to mean the opening of another. After leaving the High Court he engaged himself in the task of developing and fostering AustralianAmerican friendship, he delivered lectures of great merit, and he acted as the mentor and confidant of many in varied walks of life who found profit and pleasure in his engaging conversation and voluminous correspondence.

I hoped, at the time, that his retirement from the Chief Justiceship might lead to his appointment as Governor-General but, unfortunately, that did not happen. He would have been a dignified and very successful Vice-Regal representative. He leaves a proud name and a noble memory behind him. Australia is the richer for his life, and the poorer through his death.

MR McEWEN:
Minister for Trade and Industry · Murray · CP

– I wish to associate the Australian Country Party with the motion proposed by the Prime Minister (Sir Robert Menzies) and supported by the Leader of the Opposition (Mr. Calwell). It was my good fortune to know Sir John Latham. I can speak of him, as can everyone else who knew him, as an upright and honorable gentleman and as one whom one could instinctively trust and respect. He was a man of wisdom and integrity - a man who had always an air of dignity about him. He served this country very well indeed throughout the whole of his life, and in a variety of ways. He was a naval officer when, as one of the advisers to the then Prime Minister of Australia, he attended the conference which led to the signing of the peace treaty of Versailles in 1919. He then entered this Parliament and had a very distinguished career in it! As the Prime Minister has said, he was Leader of the Opposition in difficult days and in circumstances in which, perhaps, had he preferred his own promotion to what he conceived to be the public weal, he could well have become Prime Minister of Australia at that time. He served this country well as Leader of the Opposition and also as deputy to the late Mr. Lyons.

In due course, he became Chief Justice of the High Court of Australia. Later, at a time when I was serving, as I do now, in a government under the leadership of the present Prime Minister, it was my lot as Minister for External Affairs, to ask Sir John Latham if he would step down temporarily from the office of Chief Justice and become the first Australian ambassador to Japan, with the rank of Minister to Japan. Conceiving this to be an act of duty, he readily acquiesced and, in very difficult days, he served as our diplomatic representative in Japan, endeavouring to the best of his ability to have our circumstances comprehended by the then government of Japan and to translate to our Government here the views of the Japanese Government. However, as history shows, the results that we had hoped for were not achieved and Sir John Latham found himself in Japan at the outbreak of war.

It was quite some considerable time before he was able to return to this country. When he came back, he resumed his office as Chief Justice and in due course, heretired. But, hot content with his long period of service, he then, as Leader of the Opposition has reminded us, devoted himself to what he conceived to be of great importance - achieving- a better understanding between the people, the commercial interests and the governments of Australia and the United States of America. For a number of years, he was President of the Australian-American Association, and, in that office, rendered not the least of his services to this country. I think the House does well to remember and to respect Sir John Latham.

Question resolved in the affirmative, honorable members standing in their places.

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DEATH OF THE HONORABLE CHARLES WILLIAM FROST

Sir ROBERT MENZIES:
KooyongPrime Minister · LP

– On Wednesday 22nd July of this year, the death occurred of Mr. C. W. Frost, who was very well known to a number of us in this House, not only as Minister for Repatriation and Minister in charge of War Service Homes - positions that he occupied from 1941 to 1946 - but also, of course, as the honorable member for the Tasmanian electorate of Franklin from 1929 to 1931, and from 1934 to 1946. He thus had an extensive period of service in this Parliament. During that time, Charles Frost was a member of the Australian delegation to what was then called the Empire Parliamentary Association, which visited England in 1935. He was a member of the Joint Committee on Public Works from 1937 to 1940, and a member of the Rural Industries Committee from July 1941 to November 1941. After he went out of the House he was Commissioner - an office we now call High Commissioner - to Ceylon from 1947 to 1948. and then High Commissioner from 1948 to 1950. He has left behind him a wife, two sons and a daughter.

Those of us who were here with him in this Parliament will, I think, always remember him very vividly, not because he was a complex character or a difficult sort of man - one does occasionally remember difficult men - but because he was a man of the most rugged simplicity of approach and simplicity of character. I like to put it in this way: That he brought a great deal of humanity into politics and into political controversy. He had an engaging quality about him which produced, if my experience counts for anything; instinctive affection for him. He served his electors well, he served his party well, he served this Parliament well and he served this country well. Not always can you say those four things about the one man. I remember him with great pleasure and I share with thousands of other people a profound regret at his death. I move -

That this House expresses its deep regret at the death of the Honorable Charles William Frost, a former member of this House for the Division of Franklin, and a former Minister of the Crown, places on record its appreciation of his long and meritorious public service and tenders its profound sympathy to his widow and family in their bereavement.

Mr CALWELL:
Leader of the Opposition · Melbourne

– Charles William Frost came into this Parliament in 1929 by winning the seat of Franklin in Tasmania. Defeated in 1931, he recaptured the seat in 1934 and held it until 1946. Very few members now in this House will remember seeing him, but those who knew him remember him as a tall, powerfully built man with a cheery smile and a fund of good humour. An apple grower in the Huon Valley, Charles Frost knew the needs and wants of that particular industry as well as any man, and he knew and championed the claims of other primary producers while he remained a member of this Parliament. He was elected to the first Curtin Ministry in October 1941 and was appointed Minister for Repatriation, and held that portfolio until he failed to gain re-election to Parliament five years later.

I have always thought that Charles Frost, like the late Claude Barnard, his successor in the portfolio who was defeated in Bass in 1949, was defeated because of the impatience of many people who wanted a complete and quick return to normal life and immediate adjustment of all repatriation claims just after the war had ended. Of course, this was impossible to achieve, and Charles Frost paid a penalty he might not otherwise have had to pay had he not held what was at that time a most difficult portfolio.

After serving as our High Commissioner in Ceylon, Charles Frost settled into a long and happy retirement on his property in Tasmania. It is pleasing to record that he survived long enough to see his son, a former prisoner of war of the Japanese, elected to the Parliament of Tasmania a few months ago. There are few members of the first Curtin Government still living. Like them, Charles Frost saw much history made in those dark and terrible days and, like them, he made his own contribution to that sad but glorious chapter of Australian history.

Mr McEWEN:
Minister for Trade and Industry · Murray · CP

– I desire to associate the Australian Country Party with this motion and with the statements in the speeches which have just been made. Those of us who served in the Parliament with Mr. Frost - Charlie Frost, as we knew him - respected him and liked him. I am sure that everything that has been said of his service to those he represented, to his own political party and to the Parliament, are thoroughly justified. It is an incident of history that Mr. Frost first came to this Parliament in replacement of Mr. Mcwilliams, who was the first leader of the Australian Country Party. As honorable member for Franklin, Mr. Frost was a man who always held the respect of both sides of the Parliament throughout the whole of his service. He was a man for whose memory we are glad to be able to express our respect.

Mr FALKINDER:
Franklin

- Mr. Deputy Speaker, I would like, if 1 may, in a few brief but quite sincere words to say something about my predecessor in the electorate of Franklin. I came to know him pretty well after we had our first political light in 1946. He was a man I liked immensely. He was a simple, thorough, but true - a completely honest person. His son contested elections against me twice and I am glad to say that to this day we are still friends. All 1 wish to say is what I have said to his family - that I respected him immensely and am sorry at his passing.

Question resolved in the affirmative, honorable members standing in their places.

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DEATHS OF FORMER SENATORS AND MEMBER

Sir ROBERT MENZIES:
KooyongPrime Minister · LP

– Mr. Deputy Speaker, I think the House would wish me to make some appropriate reference to the fact that since we last met three former senators, well known to most if not all of us, and a former member of this House have died.

The death of ex-Senator Critchley has already been referred to fairly fully in the Senate. I would like to recall at this time that he had experience not only in the South Australian Parliament but also, of course, in the Senate as a senator for that State, having taken his place in the Senate in 1947 and having been re-elected in the Senate elections of 1951 and 1953. He was very greatly regarded by friend and foe alike in the Senate.

Only in the last few days I have read with great satisfaction the remarks that were made about him in that place.

The late Senator Wardlaw, from Tasmania, died at the age of 75 on 28th June of this year. All honorable members probably remember him well. He was a man with a great instinct for public service both in war and in peace. He commanded deep friendships and, dying at a ripe age, he has left behind him a very fragrant memory. We would like to have that known to his widow.

The late Senator Clothier, who died this year, was in the Senate at a somewhat earlier stage than Senator Wardlaw. He entered politics in 1933 when he won a seat in Western Australia. He was elected to the Senate at the general election of 1937, and was a senator until June 1950. Bob Clothier was tremendously popular. In fact, in my relationships with him I found myself wondering occasionally whether he was on my side or not. He had a considerable genius, I think, for a warm and friendly human approach. He has left a daughter, and those of us who knew him, as many of us did, would like her to know that we have the happiest possible recollections of him.

Finally, Sir, I come to Mr. Donald Cameron, who was member for Lilley in the last Parliament, having been elected at the end of 1961, and having suffered defeat in the election of 1963. He died recently at the very youthful age of 47. This seems to have been a deplorable event. However, those of us who sat in the last Parliament know that throughout the period for which he was with us he suffered from recurring ill health. It is regrettable that that has now taken him off.

All of these gentlemen, in their own ways, made a contribution to this Parliament. Though some future historian may be tempted to talk about the history of a great democratic parliament like this in terms of a few highlights or of a few particularly well known people, the truth is that the character of the Parliament has been contributed to, and will be contributed to, by a lot of members who have not been very much in the headlines, but who have made their contribution to the general quality of this institution. So we remember all these former members with gratitude and note their deaths with regret.

Mr CALWELL:
Leader of the Opposition · Melbourne

– Mr. Deputy Speaker, Senator Critchley was a member of the Parliament of South Australia before he came to the Senate. Others before him were members of the South Australian Parliament, became members of the Senate and later went back to the South Australian Parliament, but he came into Federal politics towards the end of his life. Though he never became a prominent member of this Parliament, he was always a popular one. He was a very happy man. He exuded friendship and goodwill and he was greatly esteemed by all who knew him. People not only in the Parliament but also outside it were sorry when he retired from active politics a few years ago. We on this side of the Parliament shall miss him. We knew him best, for he was a member of our party. Every now and then, when I went to South Australia, I telephoned him in order to renew our friendship and to enjoy a happy few minutes of conversation with him.

Senator Wardlaw was of a different political loyalty, but he, too, was a happy, genial man who made friends with members in both Houses of this Parliament and on both sides of politics. When he left the Senate, he seemed to be about to enjoy a long and happy retirement, and I was shocked when I read of his death.

I should like to associate the Opposition with the tribute to Senator Critchley and Senator Wardlaw and with the expressions of sympathy that are offered to the widow of each and to the members of their respective families.

Senator Clothier has left a daughter, and we wish her to know that we are sorry at the demise of her father. Bob Clothier was a man who had a unique personality. He was elected to the Senate in 1937 with the late Senator Cunningham and the late Senator J. M. Fraser. At that election, Sir George Pearce was defeated. Others, too, were defeated, including Mr. Tom Marwick, who was at the time filling a casual vacancy in the Senate and who later became a member of this House. Each of the three senators that I have mentioned boasted that he was the man who had defeated Sir George Pearce. That seemed to give great satisfaction to each of them and to Labour people in Western Australia. Not that I wish to derogate in any way from the reputation or the fame of Sir George Pearce. But that was one of the foibles of each of these three members who entered the Senate at the same time. Each remained in the Parliament for a considerable period, ‘ with the exception of Senator Cunningham; who died in 1943.

When I saw Senator Clothier a couple of years ago during the course of an election campaign he told me that he hoped to come back to Canberra on a visit. He enjoyed remarkably good health. His family told me that until his fatal illness he had never been ill. He had been very active in the trade union side of the Labour Party in Western Australia. We who knew him will remember him with the same kindly feeling that he always exhibited towards us.

It only remains for me to pay a tribute to the memory of Donald James Cameron, who served in this Parliament for only one term as the honorable member for Lilley. He was a veteran of World War II, but after the war he never enjoyed good health. From the time he was elected until his defeat his health was indifferent, but he struggled with devotion and courage to discharge his duties as an elected member of this Parliament should. However, the struggle was an unequal one. During the last election campaign his failing health prevented him from conducting his activities with the vigour and determination that he would have wished to employ.

We who knew him deplore his loss and offer our sympathy to his widow and children. We shall miss his genial disposition and his quiet temperament. His courage was greater than his frail figure could support. He died too young, and he has left not only his family but also his many friends from both sides of this House and from both Houses of this Parliament to mourn his loss.

Mr McEWEN:
Minister for Trade and Industry · Murray · CP

– I desire to associate the Australian Country Party with the sentiments which have been expressed. Those of us who knew the late Senator Clothier and the late Senator Critchley respected their devotion to their cause and comprehended that they served their party and the Senate with distinction and devotion. We greatly regret their passing.

Senator Bob Wardlaw of Tasmania was; a man of very deep knowledge and under* standing, a man who served with the Australian Light Horse in the First World War and a man with whom I found much in common because he had a very deep knowledge and understanding of agricultural matters. He was a man whom to know was to like and to respect. We greatly regret his passing, and we extend our sympathy to his widow, as we do also to the widows of Senator Clothier and Senator Critchley.

To the widow and family of the late Mr. Cameron I also extend the sympathy of my. party. Mr. Cameron, whom we knew for not so very long, was a quiet man who devoted himself with loyalty to the affairs of his party. He was respected in this House, and we greatly regret his passing.

Mr Kevin Cairns:
LILLEY, QUEENSLAND · LP

– I desire to associate myself with the sentiments expressed relating to the former honorable member for Lilley, Mr. Donald Cameron. Although he was in this House for only two years it is clear that he was able to help many people. Having followed him as representative of the electorate I can appreciate his great activity and the considerable goodwill that he built up. I extend my condolences to his widow and family.

page 10

DEATH OF PRESIDENT KENNEDY OF THE UNITED STATES OF AMERICA.:

Mr DEPUTY SPEAKER:

– I have to inform the House that a communication has been received from the President of the

United States of America in which Mr. President asks that the sincere thanks of the American people be conveyed to members of this House for their thoughtful message and record of condolence on the occasion of the death of President John F. Kennedy.

page 11

PETITIONS

Social Services

Mr. BEATON presented a petition from certain electors of the Commonwealth praying that the Commonwealth Government immediately grant a basic pension rate of £8 10s. per week, formulate a national housing plan for low rental homes for pensioners and provide all pensioners within the permissible income with the medical entitlement card.

Petition received and read.

Similar petitions were presented by Mr. Benson, Mr. Peters and Mr. Jess.

Petitions severally received.

Nuclear Tests

Mr. KILLEN presented a petition from certain electors of the Commonwealth praying that the Commonwealth Government (1) instruct its representative at the United Nations to condemn the French Government’s proposal to test nuclear weapons in the Pacific, (2) again protest directly to the French Government with a view to cancellation of the tests and (3) use all appropriate means at its disposal to obtain an extension of the treaty to cover underground tests.

Petition received.

page 11

MINISTERIAL ARRANGEMENTS

Sir ROBERT MENZIES:
KooyongPrime Minister · LP

– Since the last meeting of the House there have been some changes in the Ministry. I desire now to give formal notice of these changes to honorable members.

Senator the Honorable Sir William Spooner resigned from the Ministry with effect from 10th June 1964, leaving vacant the positions of Minister for National Development, Vice-President of the Executive Council and Leader of the Government in the Senate. Senator the Honorable Shane Paltridge has relinquished the portfolio of Minister for Civil Aviation and has been appointed Leader of the Government in the Senate. He continues to be Minister for Defence. Senator the Honorable N. H. D. Henty and the Honorable D E. Fairbairn have resigned as Minister for Customs and Excise and Minister for Air respectively. Senator Henty has been appointed Minister for Civil Aviation and Deputy Leader of the Government in the Senate and Mr. Fairbairn Minister for National Development.

These changes have led to two new appointments to the Ministry: Mr. Howson becomes Minister for Air and Senator Anderson Minister for Customs and Excise. The Minister for Labour and National Service (Mr. McMahon) has been appointed Vice-President of the Executive Council. Mr. Hulme and Mr. Fairbairn have been included in the Cabinet.

The changes have made it necessary to vary some of the arrangements for representation of Ministers in the other chamber. The arrangements, as varied, are as follows: In this House the Minister for Housing (Mr. Bury) will now represent the Minister for Customs and Excise. In the Senate, Senator Paltridge will represent me, except in matters relating to education and research. He will also represent the Minister for National Development and the Minister for Housing in addition to representing the Minister for Shipping and Transport. Senator Henty will represent the Minister for Trade and Industry and the Treasurer in addition to the Minister for the Army and the Minister for the Navy. Senator Gorton, in addition to representing the Minister for External Affairs, the Minister for Labour and National Service and the Attorney-General, will now also represent the Minister for Territories; and he will continue to deal with matters relating to education and research arising in the Senate. Senator Anderson will represent the Minister for Supply, the Minister for Immigration, the Minister for Social Services and the Minister for Repatriation.

page 12

QUESTION

FUEL

Mr LUCHETTI:
MACQUARIE, NEW SOUTH WALES

– My question is directed to the Prime Minister. I remind him that on 12th May of this year, on behalf of the Opposition, I initiated a discussion, as a matter of public importance, on the urgent need for the Government to adopt a national fuel policy. In view of the growing support for such a policy to protect our economy, security and employment, will the Prime Minister now say whether his Government is prepared to act to implement a policy in respect of our fuel needs?

Sir ROBERT MENZIES:
LP

– As the question concedes, this is a matter of policy, and I do not propose to deal with it at question time.

page 12

QUESTION

FLOOD RELIEF

Mr CLEAVER:
SWAN, WESTERN AUSTRALIA

– I address a question to the Prime Minister. I refer to the disastrous floods in the south-west of Western Australia affecting particularly the towns of Nannup, Bunbury and Collie. I ask the right honorable gentleman whether he has received already from the Premier of Western Australia a request for flood relief and whether such a request for a grant under the usual formula applicable to emergencies of this nature will receive the sympathetic consideration of the Government.

Sir ROBERT MENZIES:
LP

– I do not think we have actually received such an application from the Premier of Western Australia; but I may be wrong. I will check up on this matter. We have certain rules that we have applied to disasters in the past, and I have no reason to believe that when we do receive an application we will not treat it in the same way as we have treated previous applications.

page 12

QUESTION

WOOL

Mr POLLARD:
LALOR, VICTORIA

– I ask the Minister for Primary Industry a question. By way of explanation, I say that last month the Wool Marketing Committee of the Australian Wool Board submitted a report on wool marketing; subsequently the report was submitted to the Australian Wool Industry Conference and I understand that the Press, representatives of primary producer organisations and other people have received copies of the report. Will the Minister ensure that members of this Parliament are supplied with copies of the report at the earliest possible moment?

Mr ADERMANN:
Minister for Primary Industry · FISHER, QUEENSLAND · CP

– I will have to look at this matter to see whether copies are available, because the report has not been made to me, but to the Australian Wool Industry Conference. I will ascertain whether copies are available. I inform the honorable member that so far the Government has not come into the discussions on this matter, but there will be a conference between the industry and me later this week.

page 12

QUESTION

ARMED SERVICES

Mr JESS:
LA TROBE, VICTORIA

– I desire to ask a question of the Minister representing the Minister for Defence. Can he advise why certain Service personnel did not receive the pay increases announced by the Minister for Defence on the stated commencement date? Is he aware that, when increases were received, increased payments to the Defence Forces Retirement Benefits Fund meant less take home pay for many? Will he ask the Minister for Defence to confer with the Treasurer, to ensure that the Government’s intention to encourage recruitment by increasing salaries and allowances is not defeated in this way?

Mr FAIRHALL:
Minister for Supply · PATERSON, NEW SOUTH WALES · LP

– As I understand the position, the new pay scales for the Services became operative about 25th June and would have been picked up on the normal pay day of last week. I think administrative difficulties, the fact that small units were out in the field and other factors would have prevented the payment of the increases to a few people. To the best of my knowledge, everyone else would have received the increases. Several factors affect the amount of the take home pay. One is rent and another is taxation, which is pro rata to salary.

The honorable member referred to payments to the Defence Forces Retirement Benefits Fund. It may well be that an officer approaching retirement who received a rather sharp salary increase would have less take home pay because of increased payments to the Fund. On the other hand, of course, he would be making a big contribution to increased retirement benefits. Provision is made under the Act for such an officer to come to an arrangement if the increased payments cause hardship. I will refer the final part of the honorable member’s question to the Minister for Defence.

page 13

QUESTION

PUBLIC SERVICE

Mr CURTIN:
KINGSFORD-SMITH, NEW SOUTH WALES

– My question is addressed to the Prime Minister. Will he give urgent consideration to the introduction of four weeks’ annual recreation leave in the Commonwealth Public Service? Is it a fact that the employees of the Commonwealth Government, particularly members of the administrative and clerical division, have fared very badly in the field of improved working conditions? Is the Prime Minister aware that their superannuation rights, furlough entitlements and other conditions are lagging far behind those of public servants employed by the New South Wales Labour Government?

Sir ROBERT MENZIES:
LP

– The question of leave referred to by the honorable member is at present under active discussion between the union movement and the Public Service Board. I know something about the nature of the discussions and I do not propose to intervene by making any statement at this stage. As to the second part of the honorable member’s question, the facts would have to be ascertained to determine whether his proposition is right. I will find out from the appropriate quarters what the facts are.

page 13

QUESTION

PHOSPHATE ROCK DEPOSITS

Mr ENGLAND:
CALARE, NEW SOUTH WALES

– I address a question to the Minister for National Development. Is a search for deposits of rock phosphate being actively pursued on the mainland of Australia? Is this search being carried out in part or assisted by any government instrumentality? Is any government financial incentive being given to private enterprise in this search?

Mr FAIRBAIRN:
Minister for National Development · FARRER, NEW SOUTH WALES · LP

– The search for phosphate has been carried out in Australia for a considerable time. During the last war an active search was mounted, but without any satisfactory results being obtained. During the mid-1950s the New Zealand Government and the Australian Government agreed to mount a search of the islands to ascertain whether anything could be found to replace the Nauru,

Ocean Island and Christmas Island deposits when they cut out in an estimated time of just over 20 years. The only worthwhile discovery was in the Solomon Islands on a small island known as Bellona. After a careful examination of this area it was decided that the relatively small deposits of some four million tons were not worth developing.

Since 1957 the Bureau of Mineral Resources has been instructed to search for phosphate on the mainland, and it has located two phosphatic areas. One is at Rum Jungle, where closer inspection proved the deposits to be of low quality with odd spots of high quality, but again not adequate for development. The Bureau has recently located a very thin but high grade ore body in the Amadeus Basin in the south-west of the Northern Territory. I understand that there are a couple of other deposits on the mainland. The Government has decided that the rate of search for phosphate in Australia should be increased, and it is now considering ways of encouraging private industry to engage in this search. Already there have been signs of companies becoming interested in the search for phosphate. We hope that this trend will intensify. It will certainly be encouraged by the Bureau of Mineral Resources.

page 13

QUESTION

AUSTRALIAN ECONOMY

Mr PETERS:
SCULLIN, VICTORIA

– Does the Prime Minister recall establishing a committee about eighteen months ago to inquire into the economy of Australia? Does he remember telling me, more than a year ago, that that committee would probably submit its report within nine months of its establishment? As the committee has not yet submitted its report, can the right honorable gentleman tell me whether anything has gone seriously wrong with the committee?

Sir ROBERT MENZIES:
LP

– The honorable member’s report of what I said is completely accurate. At the time the committee was established we had a discussion with one or two of its members in order to obtain some estimate of the time that would be required for its inquiry. It was then thought that the committee might be able to produce a result within nine months and I reported that faithfully to the Parliament. Well, it has taken longer. This has proved a very complex job. As is the case with many such investigations, it has opened out as people have become involved in it. However, I had a discussion the other day with the chairman of the committee, who came to see me about this matter and who gave me a further estimate of the time the committee would take to complete its inquiries. This estimate is confirmed by Sir John Crawford, the vicechairman, whom I saw later. That estimate indicates that we should have the report in October. The committee has admittedly taken longer than we had expected it would, but I believe that its report will be all the more valuable when it comes to us. Both of these gentlemen have given me this estimate and have assured me that the report can be expected within that time.

page 14

QUESTION

HOUSING FINANCE

Mr FALKINDER:

– I direct my question to the Minister for Housing. Can the Minister say whether a bill to implement the Government’s proposal to introduce a mortgage system under which young married couples may borrow substantial amounts at a low rate of interest will be brought down in this session?

Mr BURY:
Minister for Housing · WENTWORTH, NEW SOUTH WALES · LP

– I presume that the honorable member refers to the proposed housing mortgage insurance corporation which was mentioned in the Government’s policy speech before the last election. A bill to authorise the establishment of the corporation is now being drafted. A team has been working for a considerable time on the many problems involved. At the moment we have with us a representative of the Central Housing and Mortgage Corporation of Canada, whose services have generously been made available by the Canadian Government and who will, we hope, be of great assistance to us. It will, of course, take a little time after the bill goes through this House to establish ali the working procedures, but I think the system will be in operation before very many months have passed.

page 14

QUESTION

BAUXITE

Mr NELSON:
NORTHERN TERRITORY, NORTHERN TERRITORY

– I address my question to the Minister for Territories. Can the Minister say whether negotiations are proceeding in respect of the leasing of certain areas in the neighbourhood of Gove in the

Northern Territory where bauxite deposits exist? Will the Minister also state the basic conditions that the Government has laid down in the negotiations?

Mr BARNES:
Minister for Territories · MCPHERSON, QUEENSLAND · CP

– As has been made public, we have called for fresh applications for No. 1 lease on the Gove Peninsula. The applications are due to be submitted by next December. The conditions generally are that we require maximum Australian equity in investments, that we receive a commitment for immediate operation and exploitation, that the rights of the Aborigines will be protected and that a plant capable of treating about 300,000 tons of alumina be provided for these operations.

page 14

QUESTION

HIGH COURT OF AUSTRALIA

Mr JESS:

– I direct a question to the Attorney-General. Approximately three months ago, the High Court of Australia heard a case on behalf of certain Regular Army officers who wished to resign from the Service. The presentation of the case before the Court took a little more than half a day. Can the Attorney-General tell me why, three months having elapsed, no judgment has yet been given?

Mr SNEDDEN:
Attorney-General · BRUCE, VICTORIA · LP

– The matter of a decision in relation to litigation before the High Court is one entirely for the High Court.

page 14

QUESTION

INDONESIA-MALAYSIA DISPUTE

Mr GALVIN:
KINGSTON, SOUTH AUSTRALIA

– I ask the Minister for External Affairs whether he is aware of any move by Malaysia to refer the Indonesia-Malaysia dispute to the United Nations. If he is not aware of any such move, will he give consideration to Australia’s taking the initiative and bringing this matter before the United Nations, thus giving a lead to all other countries in observing the spirit in which the United Nations Charter was framed?

Mr HASLUCK:
Minister for External Affairs · CURTIN, WESTERN AUSTRALIA · LP

– I assume that the matter which the honorable member suggests might be referred to the United Nations is the case of aggression, and this would suitably come under the notice of the Security Council. Recently, Tunku Abdul Rahman did make an announcement that he was considering bringing this matter under the notice of the President of the Security

Council. So far as I am aware, he has not yet taken that action. In the view of the Australian Government, this is an action which is the responsibility of the Government of Malaysia, and we would not ourselves wish to intervene in advance of the wishes of the Government of Malaysia.

page 15

QUESTION

SUPERPHOSPHATE

Mr ROBINSON:
COWPER, NEW SOUTH WALES

– I ask the Minister for Primary Industry whether the unprecedented demand for superphosphate in New South Wales which followed the Commonwealth bounty on phosphate fertilisers caused a shortage of supplies of this important aid to farm productivity. Was an increase of 17s. a ton imposed on all supplies when manufacturers of superphosphate found it necessary to bring in supplies from outside the State? Have negotiations taken place with the object of arranging additional supplies for New South Wales at a price more favorable to the producer?

Mr ADERMANN:
CP

– There has been an increase in the use of superphosphate. Undoubtedly this is partly the result of the assistance given by the Commonwealth Government by way of a bounty on superphosphate. In fact, the usage this year is 17 per cent, greater than it was last year.

I should think that the increase of 17s. a ton in the price of superphosphate is due partly to the increased cost of phosphate rock and partly to the freights charged for transporting surpluses from other States to assist the users of superphosphate in New South Wales. There has been a review of the price in recent days, and as a result it is to be reduced by 3s. 6d.. a ton. So, instead of being 1 7s. greater than the original figure, the price will now be 13s. 6d. greater.

As honorable members know, A.C.F. and Shirleys Fertilisers Ltd. is extending its works considerably. The company has informed us that it will bc able to meet all demands likely to be made upon it in the next twelve months.

page 15

QUESTION

SCHERING PTY. LTD

Mr L R JOHNSON:
HUGHES, NEW SOUTH WALES

– I ask the Treasurer whether the Commonwealth has called tenders for the sale of 15,000 fully paid £1 shares which it holds in the chemical manufacturing company, Schering Pty. Ltd. Is this company, through its participation in the lucrative oral contraceptive business, now earning over £250,000 a year? Why is the Government intent on disposing of the public’s interest in this company? Why does the Government desire to deny the public purse the benefit of future dividends?

Mr HAROLD HOLT:
Treasurer · HIGGINS, VICTORIA · LP

– I understand that the normal procedures and practice have been pursued in relation to this matter. I shall make inquiries to ascertain whether that is so, but that is my recollection of the submission put forward to me about it and of the basis for the decision taken.

page 15

QUESTION

DECIMAL CURRENCY

Mr TURNBULL:
MALLEE, VICTORIA

– My question is addressed to the Treasurer. Is he aware that it was stated in a news broadcast recently that a spokesman for a certain company said that there would be no immediate rise in the price of the company’s product, but that there might be a rise at the time of the introduction of decimal currency? Has the Treasurer investigated the possibility of such action being taken and will he, even at this early date, make a clear statement that price rises at the time of the changeover will not be tolerated?

Mr HAROLD HOLT:
LP

– The most effective answer to the possibility of unwarranted price increases at the time of the changeover to decimal currency will be active competition inside a buoyant and thriving economy. It is the Government’s intention to maintain the conditions which will bring this about.

page 15

QUESTION

COMPREHENSIVE WATER SCHEME IN WESTERN AUSTRALIA

Mr WEBB:
STIRLING, WESTERN AUSTRALIA

– I address a question to the Minister for Primary Industry. Is the Minister able yet to report to the House on the recommendation of the Bureau of Agricultural Economics in relation to a second comprehensive water scheme in Western Australia? The Minister will remember that when I raised this matter at the close of the last sessional period he stated that the Bureau was considering the matter and that a report should be available shortly.

Mr ADERMANN:
CP

– I am not conversant with the present position. My recollection is that that investigation was made at the request of the Western Australian Government. In that case the report would be made to that Government in the first instance. However, if my recollection is not right I will let the honorable member know what the position is.

page 16

QUESTION

POULTRY INDUSTRY STABILISATION SCHEME

Mr TURNBULL:

– Will the Minister for Primary Industry state what progress is being made in negotiations for the stabilisation of the Australian poultry industry?

Mr ADERMANN:
CP

– The Commonwealth has made clear where it stands on this matter. We have approved of an overall stabilisation proposal to be introduced when all the States are in accord with the proposal. This matter was discussed at the Australian Agricultural Council meeting which was held last month. The position remains the same - South Australia has still not finalised its conclusions on the matter.

page 16

QUESTION

INTERNATIONAL AFFAIRS

Mr CLYDE CAMERON:
HINDMARSH, SOUTH AUSTRALIA

– I ask a question of the Minister for External Affairs. Will the Minister inform the House whether Australia has lodged any protest with the Turkish Government against Turkey’s bombing and strafing of Cyprus, a member of the Commonwealth of Nations? Does it intend to do so, if it has not already done so, and does it intend to have the matter raised before the United Nations?

Mr HASLUCK:
LP

– All the events in Cyprus are at present under the notice of the United Nations, both in regard to the activities of the United Nations force trying to keep the peace in Cyprus and in regard to the fact that the Security Council of the United Nations is at present meeting on the subject. While the Australian Government deplores the actions which are taking place on, perhaps, both sides of the contest in Cyprus, it does not feel that it should become a direct party in expressing any opinion at a time when the Security Council and the United Nations security force are in control of this matter.

page 16

QUESTION

MEAT

Mr MACKINNON:
CORANGAMITE, VICTORIA

– My question is directed to the Minister for Primary Industry. By way of preface, I understand that there has been some difficulty in setting up the research section of the Meat Industry Act as it relates to mutton and lamb. I ask the Minister whether that is so. What steps are being taken to overcome this delay and to get the research under way?

Mr. ADERMANN__ 1 have been informed by the producers of sheep meats that they intend to submit a proposal to me when they have concluded their consideration of the matter of research. To date, I have not received their submission. I am waiting for it and will consider it when it is forthcoming.

page 16

QUESTION

TELEVISION

Mr COLLARD:
KALGOORLIE, WESTERN AUSTRALIA

– My question is addressed to the Postmaster-General. Is it correct that the Government has now definitely decided that it will not establish in either Kalgoorlie or Geraldton television stations of power equal to that of any already established or approved elsewhere? If so, is it also correct that the Government now proposes to consider setting up in those areas low powered stations which, compared with stations elsewhere in Australia, will provide only a second or third rate service? Finally, if such is the case, why are the Kalgoorlie and Geraldton districts being treated so differently from other country areas of similar importance and population which have been or are being equipped with high powered stations?

Mr HULME:
Postmaster-General · PETRIE, QUEENSLAND · LP

– The answer to the first part of the honorable member’s question is: “ No “. The second part of the question therefore does not require an answer. There is no difference between the position of Kalgoorlie and Geraldton and that of other areas in Australia for which no plan in relation to the extension of television has been indicated.

page 16

QUESTION

NUCLEAR TEST BAN TREATY

Mr ENGLAND:

– I address a question to the Minister for External Affairs. By way of explanation, I point out that at a recent session of the United Nations General Assembly, Australia was a cosponsor of a resolution calling upon all

States to become parties to the Nuclear Test Ban Treaty. Is it correct that a number of States have not yet signed the treaty which came into force on 10th October last year? What member States of the United Nations have not signed, and what other countries have refrained from expressing their consent to this humane and commonsense international agreement?

Mr HASLUCK:
LP

– It is true that there are some States which have not yet acceded to the Nuclear Test Ban Treaty. I find it difficult to give a precise answer at this moment because accession to the treaty can be lodged in London, Washington or Moscow. When the Department of External Affairs last compiled a list of countries that had acceded to the treaty, which was a month or two ago, there were, if my memory services me correctly, about 108 accessions. It would be necessary for the Department to make a further check at each of the three capitals I have named in order that we might be kept up to date in our information. I would not like to publish a list at this stage in case I were to do a disservice to a nation which had recently acceded to the treaty, but I shall obtain the information for the honorable member.

page 17

QUESTION

MEAT

Mr BARNARD:
BASS, TASMANIA

– My question, which is directed to the Minister for Trade and Industry, concerns the action taken by the United States Senate to end the AmericanAustralian meat import control agreement. I ask the right honorable gentleman: What action is being taken at governmental level to reverse the Senate decision to repudiate the agreement? I ask also whether the Minister will indicate the extent to which other markets are being investigated in order to replace the United States market if any negotiations now in progress are not successful.

Mr McEWEN:
CP

– Immediately it became ‘ known that the United States Senate had passed a bill that would have the effect of substantially altering the terms of the meat agreement, this Government made direct representations to the United States Administration in very forceful and clear terms. As may be observed, I have refrained from making any comment publicly, because I have considered that it would not be right for a member of a government to attempt to influence the action of a house of parliament in another country. Our communication has been to the government and not to the parliament of another country. The Department- of Trade and Industry, the Australian Meat Board, the Department of Primary Industry and all the meat interests in Australia have been pursuing vigorously the exploration of alternative meat markets. By a happy coincidence, a set of circumstances in the northern hemisphere has provided this year a market for our meat approximately equal in volume and value to the decline in the United States market. As a result, our industry has not been obliged to press its meat on the United States market. The diversion of meat which has happily occurred and which has not been compelled by government action has had the important result of reducing the quantity of Australian meat going to the United States of America this year.

page 17

QUESTION

SUPERPHOSPHATE

Mr TURNBULL:

– My question is addressed to the Minister for Primary Industry. I ask: Will he investigate not only the justification for the steep increase in the price of superphosphate but also the reason for the elimination of the off season rebate of 20s. a ton? Would it be that the action of the companies concerned has some connection with the superphosphate subsidy?

Mr ADERMANN:
CP

– I shall discuss the matter with my colleague, the Minister for Customs and Excise, who directly administers this aspect of it. We shall see whether we can get any information for the honorable member.

page 17

QUESTION

WEST IRIAN

Mr HANSEN:
WIDE BAY, QUEENSLAND

– My question is directed to the Minister for External Affairs. I direct his attention to Indonesian maps of West Irian and to the town now known as Sukarnopura. I ask: Is this the place formerly known as Kota Baru and before that as Hollandia? Can the Minister state whether there are any specific reasons for the change of name? If not, will he bring to the notice of the Indonesian people the fact that changes of this kind cause considerable confusion and present difficulties to airlines in the marking of place names on their maps?

Mr HASLUCK:
LP

– The honorable gentleman’s information is correct. The town which we first knew as Hollandia and which later became Kota Baru is now known in Indonesia as Sukarnopura. The reason for the change, I imagine, is a wish to honour the President of the Indonesian Republic.

Mr Reynolds:

– This is before the vote by the people of West Irian, too.

Mr HASLUCK:

– The matter comes entirely under the administration of Indonesia. The terms of the recent transfer of administration from the United Nations to Indonesia provided that the transfer was subject to an act of ascertainment to be carried out by the United Nations. But there is no limit on the administrative authority of Indonesia pending that act of ascertainment.

page 18

QUESTION

MEAT

Mr NIXON:
GIPPSLAND, VICTORIA

– My question, which is directed to the Minister for Trade and Industry, is supplementary to that asked a few minutes ago by the honorable member for Bass. Would ratification of the United States Senate’s action designed to reduce meat import quotas into that country affect in any way the Kennedy Round of discussions being held to ease tariff restrictions between nations on agricultural products?

Mr McEWEN:
CP

– The Kennedy Round of tariff negotiations, having as its objective the freeing of world trade, represents a combination of an attempt to negotiate lower tariffs and an attempt to remove or lower non-tariff obstacles to international trade, such as quota restrictions, import restrictions of all kinds, licensing and exchange control. The United States is actively committed to pursuit of the objective of persuading the nations of the world that this is good. We agree entirely with this. Of course, it would be a contradiction if, while the U.S. Government was urging this course in respect of agricultural products, its own authority was diminished by an act of its own Congress to erect new barriers to imports into America of these products.

I have no doubt that both the President and the American Administration are keenly desirous of preserving the meat agreement as it stands and, as a side issue, their influence in the course of the Kennedy Round negotiations.

page 18

QUESTION

UNIDENTIFIED FLYING OBJECTS

Mr BENSON:
BATMAN, VICTORIA

– My question to the Minister for Air relates to the state of our radar readiness. Has the Minister seen recent reports in the Press that radar units in our northern area go out of operation during weekends? Are these reports correct? If they are, will the Minister take steps to ensure that a. constant watch is kept?

Mr HOWSON:
Minister for Air · FAWKNER, VICTORIA · LP

– Yes, I have seen those reports. As a rule, the radar stations in the north are not manned continuously, but it is not correct that they are manned only in normal working hours. At the moment we do not consider that the dangers to our north are such that we need to keep a constant watch. I suppose the honorable member would want a string of radar stations all the way from Carnarvon to Cape York, and fighter squadrons located all over our northern area. We do not hold the fortress concept that is so beloved by members of the Opposition, but we have certain commitments. The chief demand on us at this time is to help our friends to our north, to meet any requests for assistance that they may make to us. At this stage we regard that as our first priority.

page 18

QUESTION

PAPUA AND NEW GUINEA

Mr FAILES:
LAWSON, NEW SOUTH WALES

– Is the Minister for Territories satisfied that negotiations relating to the border between Papua-New Guinea and West Irian are proceeding satisfactorily? Is it expected that the ultimate marking of the border will be effective for quarantine purposes, particularly with regard to foot and mouth disease and diseases of that kind?

Mr BARNES:
CP

– This question relates to two different subjects. The marking of the border has no relation to the proposals to combat the introduction of exotic diseases. I understand that negotiations for the marking of the border are proceeding very satisfactorily, but I think that the question could have been directed more appropriately to my colleague the Minister for External Affairs.

page 19

QUESTION

UNIDENTIFIED FLYING OBJECTS

Mr HARDING:
HERBERT, QUEENSLAND

– I direct a question to the Minister for Air. In view of reports of unidentified objects flying over north Queensland and northern Australia, can the Minister inform the people living in the area whether the sightings are imaginary? Has be any plans for positive identification in the event of future sightings?

Mr HOWSON:
LP

– The honorable member may have read the statement I made on this subject only a few days ago, in which I said that we cannot state positively that these were not enemy aircraft. However, I can say that of such sightings that have been reported and investigated not more than 3 per cent, have been thought to have involved anything other than birds, showers of meteors and the other objects to which I referred in the statement. The object that was reported over Longreach was sighted at exactly the same time as a DC8 aircraft was passing over that town. Showers of meteors have also been sighted over Longreach in similar circumstances. I very much doubt whether the objects were anything other than what we believe them to be. As I stated in my reply to the question asked by the honorable member for Batman, if the honorable member for Herbert thinks that we should devote all the resources of the Royal Australian Air Force to operating radar stations around our north instead of getting on with the job of meeting what we regard as a first priority, he will have to think again.

page 19

QUESTION

RESTRICTIVE TRADE PRACTICES

Mr CLEAVER:

– Has the AttorneyGeneral’s attention been directed to a recent claim that the Australian garment industry is receiving a raw deal from the giant retailers in this country? Will the proposed restrictive trade practices legislation provide some measure of protection from such influences as restrictive distribution, subsidised advertising, special discounts and other types of pressure which apparently have harassed members of the National Garment Industries Association?

Mr SNEDDEN:
LP

– It is not appropriate at this time to anticipate the provisions of the restrictive trade practices legislation.

page 19

QUESTION

PAPUA AND NEW GUINEA

Mr HAYDEN:
OXLEY, QUEENSLAND

– Will the Minister for Territories state whether there is any truth in reports that Indonesia is occupying and administering Australian territory in PapuaNew Guinea? If the reports are true, will he state the location of such territory and the Government’s official attitude to any such occupation and administration? What are the Government’s proposals in relation to the future of this occupied territory?

Mr BARNES:
CP

– I am not aware of any such territory which, as the honorable member alleges, is being administered by Indonesia. I have no doubt that there could be such territory being administered at present by Indonesia, but until the true border is marked we will not be able to state the position definitely.

page 19

QUESTION

MEAT

Mr UREN:
REID, NEW SOUTH WALES

– I preface a question to the Minister for Trade and Industry by reminding the House of the Minister’s statement that Australia’s meat export market would not be affected by the decision of the United States Senate to restrict Australian meat exports to America because our meat exports to the United Kingdom have increased. Does the Minister agree that the action of the United States Senate wilt affect our balance of trade with America? If it does, what action does the Government intend to take to rectify our huge adverse balance of trade with America which, over the past 14 years, has totalled £1,300 million?

Mr McEWEN:
CP

– In recent years, our exports of meat to the United States of America have been important in quantity and very important as regards the value of the exchange earned. But I think it is too early yet to anticipate that the meat agreement will not stand up. I allow myself to have some confidence that it will stand up. The honorable member has asked whether the Government will take some action to redress the balance of trade.

Mr Uren:

– The U.S. Senate has taken action. Why don’t we?

Mr McEWEN:

– Are you answering the question? It is not the Government’s policy to attempt to establish a balance of trade with each of its trading partners. It is certainly the Government’s’ policy to attempt to obtain an overall balance of trade. It is true that we buy more from the United States than the United States buys from us. We seek by every means possible to sell more to that country. But in the case of trade between Australia and New Zealand, for example, the balance is very much in favour of Australia and adverse to New Zealand. This is a phenomenon that occurs with world trading nations at all times all round the world. It is a mistake to think that there is some justification for demanding bi-lateral balances of trade between two trading partners in all instances. We do our best to sell as much as we can to whomever we can.

page 20

INTERNATIONAL AFFAIRS

Ministerial Statement

Mr HASLUCK:
Minister for External Affairs · Curtin · LP

On 2nd August, the United States destroyer “ Maddox “ which was on routine patrol in the Gulf of Tonkin, was attacked, some 30 miles off shore, by three North Vietnamese fast patrol boats using torpedoes and machine gun fire. The attack was deliberate and made in daylight on the high seas. The “ Maddox “ returned the fire and disabled one vessel. Subsequently the President of the United States issued a statement announcing that the Navy had been instructed to continue the patrols with two destroyers instead of one; that the destroyers would be provided with air cover; and that they had been ordered to attack any force which attacked them. North Vietnam was warned of the consequences of any further incidents.

On the night of 4th August the “ Maddox “ and a second destroyer, “ C Turner Joy “, were attacked about 60 miles off the coast by a number of vessels under cover of darkness. This attack was planned and deliberate. It was beaten off, two of the attacking vessels being sunk and two damaged.

In pursuance of the warning previously given, President Johnson announced that repeated acts of violence against the armed forces of the United States “ must be met not only with alert defence but with positive reply”. Yet, he said, the response for the present would be “ limited and fitting “. It is well to place on record the President’s words -

We Americans know, although others appear to forget, the risk of spreading conflict. We still seek no wider war.

Aircraft of the United States ships “ Constellation “ and “ Ticonderoga “ attacked the bases from which the North Vietnamese craft operated. Some 25 motor torpedo boats were destroyed or damaged and an oil depot was in large part destroyed. Since that action on the night of 4th August there have been no further incidents. The United States has deployed greater strength into the area.

At the same time as he announced these actions, President Johnson instructed that the matter be raised immediately and urgently before the Security Council of the United Nations. This has been done and the Security Council has commenced discussion of the question.

On 6th August the United States Congress was put in possession of the facts and the Senate and the House passed a resolution, both parties supporting it, approving the President’s actions. This resolution is of such historic importance that I quote the operative paragraphs in full:

The Congress approves and supports the determination of the President, as Commander-in-Chief, to take all necessary measures to repel any armed attacks against the forces of the United States and to prevent further aggression.

The United States regards as vital to its national interest and to world peace the maintenance of international peace and security in South-East Asia.

Consonant with the Constitution and the Charter of the United Nations and in accordance with its obligations under the South-East Asia Collective Defense Treaty, the United States is, therefore, prepared, as the President determines, to take all necessary steps, including the use of armed force, to assist any member or protocol state of the South-East Asia Collective Defense Treaty requesting assistance in defense of its freedom.

This resolution shall expire when the President shall determine that the peace and security of the area is reasonably assured by international conditions created by action of the United Nations or otherwise except that it may be terminated earlier by concurrent resolution of the Congress.

I commend a study of that resolution to honorable members. That expression by a great power, through the voice of the representatives of its people, is a signal that will hearten those who resist aggression throughout the world.

Most Australians clearly recognise that, in a world where there is aggression, peace can be established and the principles of the United Nations Charter applied only after aggression has been made to fail. The Government, the Congress and the people of the United States of America have gained our respect and honour for their acceptance of the great responsibilities that come with great power and for their sober, determined but restrained use of their power for the peace and security of other peoples. Do not let us forget that the immediate gains in security out of these incidents have been greater for the people of the South-East Asian region than for the peoples of North America.

Immediately on receiving news of the events I have just recounted I issued a statement on behalf of the Australian Government reading in part as follows -

The Australian Government believes that the United States Government could do no less than take the necessary military measures to protect its naval vessels from attack in international waters. The action by the United States in defence of its forces and in defence of the principles of the freedom of the high seas - a matter of paramount importance to Australia - has obliged the United States, in the words of President Johnson, to take action against “certain supporting facilities in North Vietnam which have been used in these hostile operations”. The Government believes that this action was completely justified as North Vietnam could not be left undisturbed in its capacity to launch and renew such attacks.

The Australian Government notes that the action being taken by the United States Forces against North Vietnam bases and supporting facilities was described by President Johnson as “limited and fitting” and that the United States was seeking a meeting of the United Nations Security Council to discuss the situation today.

In confirming that statement I should like to remind honorable members of the fact that the incidents in the Gulf of Tonkin are part of a long sequence of aggression in South East Asia. They should be viewed in the context of danger throughout this region and not as an isolated event. Although all of us hope fervently for peace and for good relations with our neighbours, let none of us be blind to the realities of power. North Vietnam, which possesses the largest army on the South-East Asian mainland and which has behind it the even greater power of mainland China, has been active in war, infiltration, terrorism and subversion in South Vietnam and Laos. This is the fact that shakes the stability of the region, threatens the political independence of nations and prevents its people from enjoying the social and economic progress that could otherwise be their lot. In the face of events, the Australian Government is convinced that, whatever posibilities the future may hold for a genuine settlement in the region, there is no current alternative to the effort of assisting in South Vietnam to preserve its independence and there is no current alternative to using force as necessary to check the southward thrust of militant Asian Communism. Our own defence measures and such aid as we have been able to give to neighbouring states are influenced by this realisation. It is our hope that the restrained but determined actions of the United States will have a strong deterrent effect on the aggressor and lead to second thoughts by those who seek peace only by crushing free nations.

In seeking peace as the final objective of our policy, we recognise the need at the present time for the deterrent effect of power, and we ourselves within the limits of our capacity are determined to stand with our allies in S.E.A.T.O. in the defence against Communist aggression in South East Asia. Our own security in Australia is inseparable from the security of the region. We cannot profess to be concerned with the one without being ready to do something about the other. Although we continue to watch events closely and with deep concern, there is at present no reason to assume that the conflict will extend. Wc will continue to use every diplomatic opportunity that presents itself to seek peace and we are confident that is also the purpose of our allies. The firmness and promptness shown in meeting hostile action have been matched in the past and will be matched in the future by our allies by firmness, patience and restraint in the face of more subtle threats to peace.

Australia will make its own decisions from time to time in keeping with its responsibility to the Australian people and its commitments to its allies, and we will make our own judgments and offer our own comments on the changing world scene. Our support in this case was considered and not automatic. At the present juncture and dealing with the incidents now under notice we do not qualify in any way our plain statement to the United States and to the world that we support the action of the

United States and believe it to have been justified by the circumstances that provoked it and by its effect on the endeavours to bring peace to South East Asia.

Mr CALWELL:
Leader of the Opposition · Melbourne

– by leave - There is no such thing as a bipartisan foreign policy in this country. The Americans may have such a thing, but we in Australia have not. Earlier I suggested to the Minister for External Affairs (Mr. Hasluck) that he might make this statement tomorrow, after which we could have a real debate on what Australia’s attitude ought to be in the light of the Vietnam crisis, in the light of the Malaysian-Indonesian crisis and in the light of Cyprus. But we certainly cannot have a debate on it tonight. I could speak now and perhaps go until a quarter to six, but nobody else could take part in the debate after that for the obvious reason that the Budget is to be presented at 8 o’clock.

There is only one thing for the Minister to do, now that he has refused my request that he delay his speech until tomorrow, and that is to ask somebody on his side of the House to move: “ That the House take note of the paper”. The debate could then be resumed on Thursday. Thursday might be a better time because there is enough work before the House to keep it occupied tomorrow. We are most anxious that we should have an opportunity to state our case. Our quarrel with the Government - I make this observation now so that Ministers may think about it - is that our commitments to these various trouble spots are made without any treaty obligations on our part or on the part of anybody else. We do not desire to see another eighth division of Australian troops sucked into an Asian jungle or swallowed up by the quicksands of Asia. If we are to be committed, we ought to know the extent of the commitment. The commitment cannot be made piecemeal - 23 men to South Vietnam as instructors one day, SO another day, and so on.

We want a more definitive statement than the Minister has presented. We would not mind another statement being made to the House; we would welcome it. But we would like it to be as full as possible - much fuller than the statement that the Minister has just made. His reasons for making that statement are his own. The

Department of External Affairs may think it desirable that a statement be made immediately the Parliament resumes. Maybe foreign diplomats want to know what the Government is thinking. I do not think anybody would get much information on where the Government is going or what it intends to do from the statement that has been made today. To us it sounds like a propaganda statement, full of pious platitudes. The lives of Australians will be involved in these South East Asian troubles. Therefore somebody - perhaps it should be the Minister for External Affairs, for whose integrity and capacity I have a great respect - should make a statement.

The extraordinary point about this matter is that the Vietnam trouble exploded eight days ago and we have not yet heard one word about it from the Prime Minister (Sir Robert Menzies). The Minister for External Affairs made a statement on the night the trouble between the North Vietnamese and the Americans erupted; but the Prime Minister, who is so glib in telling us about the new arrangements with the United States in regard to an extended Fulbright scholarship scheme, is as silent as the grave on this issue. The Prime Minister of Australia ought to come out and say what is the attitude of his Government on all these matters. He should not leave it to the Minister for External Affairs, no matter how competent the Minister is.

I ask that after this debate is adjourned the Government consider whether it will make a wider and fuller statement on all the issues involved. Immediately after the Minister has made that statement the Government should permit the Parliament to debate all these issues over a period of a day. A day is not too long to spend on foreign affairs. What happens in the trouble spots in Asia is much more important to Australia and Australia’s future than what will be announced in the Budget tonight. There will be all sorts of publicity for the Budget; there will be great displays about it in the Press. But the statement made by the Minister for External Affairs will receive the scantest notice in the Press of Australia tomorrow. The Treasurer (Mr. Harold Holt) will make his Budget Speech to-night, and the affluent, greedy and avaricious sections of the community will scan the newspapers to see how much more they are to be asked to pay for the defence of this nation and to enable us to honour our treaty obligations.

Mr Hasluck:

– May I ask the honorable gentleman whether he would prefer me to move that the statement I have read be noted by the House or to undertake that we will initiate a debate on foreign affairs with another statement.

Mr Calwell:

– I would prefer the second course, and I would ask that the statement cover not only the Vietnam situation but also the situation in Malaysia, Cyprus and every other area in which Australian lives are involved. We have Australian servicemen in every one of these battle areas.

Mr Hasluck:

– If I may, I will move that this present statement be noted so that it will be on the notice-paper. Subject to consultation with the Prime Minister and the Leader of the House I will look into the possibility of initiating a full debate later this week. I present the following paper -

Incidents in the Gulf of Tonkin - Ministerial Statement, 11th August 1964 - and move -

That the House take note of the paper.

Mr Calwell:

– I hope that in the consultations that do take place the Leader of the Opposition will not continue to. be ignored.

Debate (on motion by Mr. Calwell) adjourned.

page 23

BILLS RETURNED FROM THE SENATE

The following Bills were returned from the Senate without amendment -

Explosives Bill 1964.

Cellulose Acetate Flake Bounty Bill 1964.

Sulphate of Ammonia Bounty Bill 1964.

States Grants (Science Laboratories and Technical Training) Bill 1 964.

Homes Savings Grant Bill 1964.

page 23

ASSENT TO BILLS

Assent to the following Bills reported-

Wool Industry Bill 1964.

Wool Tax Bill (No. 1) 1964.

Wool Tax Bill (No. 2) 1964.

Wool Tax Bill (No. 3) 1964.

Wool Tax Bill (No. 4) 1964.

Wool Tax Bill (No. 5) 1964.

Wool Tax (Administration) Bill 1964.

Wool Tax Legislation Repeal Bill 1964.

Commonwealth Aid Roads Bill 1964.

Appropriation Bill (No. 2) 1963-64.

Appropriation (Works and Services) Bill (No. 2) 1963-64.

Supply Bill 1964-65.

Supply (Special Expenditure) Bill 1964-65.

National Health Bill 1964.

Apple and Pear Organization Bill 1964.

Processed Milk Products Bounty Bill 1964.

Dairy Produce Levy Bill 1964.

Dairy Produce Research and Sales Promotion’ Bill 1964.

Dried Vine Fruits Stabilizataion Bill 1964.

Dried Vine Fruits Contributory Charges Bill 1964.

Dried Vine Fruits Contributory Charges (Collection) Bill 1964.

Mint Employees Bill 1964.

Income Tax and Social Services Contribution Assessment Bill 1964.

Explosives Bill 1964.

Cellulose Acetate Flake Bounty Bill 1964.

Sulphate of Ammonia Bounty Bill 1964.

States Grants (Science Laboratories and Technical Training) Bill 1964.

Homes Savings Grant Bill 1964.

Acts Interpretation Bill 1964.

Evidence Bill 1964.

State and Territorial Laws and Records Recognition Bill 1964.

Rules Publication Bill 1964.

Australian Institute of Aboriginal Studies Bill 1964.

Petroleum Search Subsidy Bill 1964.

page 23

TARIFF PROPOSALS 1964

Customs Tariff Proposals (No. 16); Customs Tariff Proposals (No. 17); Customs Tariff Proposals (No. 18); Customs Tariff (Canada Preference) Proposals (No. 2)

Mr BURY:
Minister for Housing · Wentworth · LP

.-I move- [Customs Tariff Proposals (No. 16).]

  1. That the Schedule to the Customs Tariff 1933-1964, as proposed to be amended by Customs Tariff
Proposals, be further amended as set out in the Schedule to these Proposals and that the amendments operate, and be deemed to have operated, on and after the twelfth day of June, One thousand nine hundred and sixty-four. {: type="1" start="2"} 0. That in these Proposals, " Customs Tariff Proposals " mean the Customs Tariff Proposals introduced into the House of Representatives on the following dates: - 8th April, 1964; 16th April, 1964; 23rd April, 1964; 13th May. 1964; and 20th May, 1964. [Customs Tariff Proposals (No. 17).] {: type="1" start="1"} 0. That the Schedule to the Customs Tariff 1933-1964, as proposed to be amended by Customs Tariff proposals, be further amended as set out in the Schedule to these Proposals and that the amendments operate, and be deemed to have operated, on and after the twenty-sixth day of June, One thousand nine hundred and sixty-four. 1. That in these Proposals, " Customs Tariff Proposals " mean the Customs Tariff Proposals introduced into the House of Representatives on the following dates: - 8th April, 1964; 16th April, 1964; 23rd April, 1964; 13th May, 1964; and 20th May, 1964. [Customs Tariff Proposals (No. 18).] {: type="1" start="1"} 0. That the Schedule to the Customs Tariff 1933-1964, as proposed to be amended by Customs Tariff Proposals, be further amended as set out in the Schedule to these Proposals and that the amendments operate, and be deemed to have operated, on and after the seventeenth day of July, One thousand nine hundred and sixty-four. 1. That in these Proposals, " Customs Tariff Proposals " mean the Customs Tariff Proposals introduced into the House of Representatives on the following dates: - 8th April, 1964; 16th April, 1964; 23rd April, 1964; 13th May, 1964: and 20th May, 1964. [Customs Tariff (Canada Preference) Proposals (No. 2).] That the Second Schedule to the Customs Tariff (Canada Preference) 1960-1964 be amended as set out m the Schedule to these Proposals, and that the amendments operate, and be deemed to have operated, *on* and after the twelfth day of June, One thousand nine hundred and sixty-four. {: .page-start } page 29 {:#debate-43} ### THE SCHEDULE **Mr. Deputy Speaker,** Customs Tariff Proposals Nos. 16, 17 and 18 relate to tariff alterations proposed by " Gazette " notice during the recent recess and now formally introduced in the Parliament as required by law. In each case the duty changes resulted from the Government's acceptance of recommendations -by the Tariff Board. Press statements by my colleague, the Minister for Trade and Industry **(Mr. McEwen),** and copies of the relevant " Gazette " notices and Tariff Board reports were circulated to honorable members at the time the duty changes were made. It will be recalled that " Gazette " Notice No. 78, now covered by Proposals Nos. 16, affected phthalic esters, certain alkyl sulphomc esters and replacement ignition coils for motor vehicles. It introduced duties which would provide increased assistance to Australian producers of phthalic esters and of 6 or 12 volt automotive ignition coils, but which would reduce to a minimum the cost of importing certain alkyl sulphonic esters not produced in Australia. In the case of replacement ignition coils, the duty changes involved international negotiations and are complementary to increased duties already enacted in respect of other automotive electrical equipment. Notice of Proposals No. 80, now covered by Proposals No. 17, retains the protective ad valorem duties previously applying to imports of electronic devices known as high negative temperature co-efficient resistors, but dispenses with the former alternative fixed rate duties. It does not change the duties on transistors and other semiconductor devices. By Notice of Proposals No. 81, now covered by Proposals No. 18, the former . temporary duties of 20 per cent, ad valorem on conveyor belts and belting, which had applied pending receipt and consideration of the Tariff Board's report, were removed and fabric reinforced conveyor belts and belting were made dutiable at rates of 35 per cent, ad valorem under the British preferential ' tariff and 45 per cent, ad valorem . when from other countries. These duties, however, will not apply to metal reinforced rubber belts and belting because, in the opinion of the Tariff Board, these can be produced competitively in Australia without tariff assistance. The duties which have been adopted for cotton fabrics of the types used in reinforcing conveyor belting are 50 per cent, ad valorem or 3s. per lb., whichever the higher, under the British preferential tariff, with rates a further 10 per cent, higher on imports from most favoured nation sources. On detergent alkylates, and on sulphonic acids suitable for use in the manufacture of detergents, new protective duties of 10 per cent, ad valorem under the British preferential tariff, and 274- per cent, ad valorem on most other imports, have been introduced. The Australian production of natural barium sulphate will also be assisted by duties which have been increased to £4 per ton on imports from most favoured nation sources. The protection accorded the local production of furnishing fabrics is being continued at the level of the former combined ordinary and temporary duties, but will again be reviewed by the Tariff Board in the near future, in conjunction with other inquiries the Board is conducting on similar fabrics used for other purposes. Canada Preference Proposals No. 2, previously implemented by " Gazette " Notice No. 79, is complementary to Proposals No. 16 and ensures that preferential treatment for the goods specified, when of Canadian origin, will be continued. A summary of the tariff amendments ls at ' present being circulated in the chamber. The Tariff Board's report relating to automotive electrical equipment was tabled some time ago and at a later stage I shall also table the other reports which gave rise to the Proposals now before the House. I commend the Proposals to honorable members. Debate (on motion by **Mr. Pollard)** adjourned. {: .page-start } page 30 {:#debate-44} ### SUSPENSION OF STANDING ORDERS Motion (by **Mr. Bury)** - by leave* - agreed to- >That so much of the Standing Orders be suspended as would prevent four Customs Tariff Bills- > >being presented and read a first time to gether and one motion being moved without delay and one question being put in regard to, respectively, the second readings, the Committee's report stage, and the third readings, of all the Bills together, and > >the consideration of the Bills separately in one Committee of the Whole. {: .page-start } page 30 {:#debate-45} ### CUSTOMS TARIFF BILL (No. 3) 1964. CUSTOMS TARIFF (CANADA PREFERENCE) BILL (No. 3) 1964. CUSTOMS TARIFF (NEW ZEALAND Bills presented by **Mr. Bury,** and read a first time. {:#subdebate-45-0} #### Second Readings {: #subdebate-45-0-s0 .speaker-JTP} ##### Mr BURY:
Minister for Housing · Wentworth · LP -- I move - >That the Bills be now read a second time. We have before us for discussion a Bill to - amend the Customs Tariff 1933-1964 and three complementary tariff preference Bilk. These Bills will enact the Customs Tariff Proposals which are now before the House, namely, Customs Tariff Proposals Nos. 7 to 18, Customs Tariff (Canada Preference) Proposals No. 2, Customs Tariff (New Zealand Preference) Proposals Nos. 5 and 6, and Customs Tariff (Papua and New Guinea Preference) Proposals No. 2. Honorable members will recall that full documentation was distributed at the time that the duty changes were made and additional copies of the documents are available if required. Except for two minor drafting changes relating to cameras and to replacement automative distributors, the tariff amendments incorporated in the Bill are the result of the Government's acceptance of recommendations by the Tariff Board. The drafting changes are included for purposes of clarity only and will not change in any way the duties at present being collected. I commend the Bills to honorable members. Debate (on motion by **Mr. Pollard)** adjourned. {: .page-start } page 31 {:#debate-46} ### TARD7F BOARD Reports on Items. {: #debate-46-s0 .speaker-JTP} ##### Mr BURY:
Minister for Housing · Wentworth · LP -- I present reports by the Tariff Board on the following subjects - Belts, Belting, Fabrics over IS ounces per square yard and Interim Report under (be General Textile Reference on Fabrics over IS ounces per square yard. {:#subdebate-46-0} #### Clad Steel Strip Detergent Alkylates, etc. Float Controlled Valves of the type used in Space Heaters fired by liquid fuel. {:#subdebate-46-1} #### Glass Envelopes for Cathode Ray Tubes {:#subdebate-46-2} #### Natural Barium Sulphate (Barytes) {:#subdebate-46-3} #### Phthalic and Alkyl Sulphonic Esters Transistors, Thermistors, etc. Woven Furnishing Fabrics and Moquettes and Interim Report under the General Textile Reference on Woven Furnishing Fabrics and Moquettes. The reports on clad steel strip, float controlled valves of the type used in space heaters fired by liquid fuel and glass envelopes for cathode ray tubes are the only reports of those I have tabled which do not call for any legislation action. Ordered to be printed. Sitting suspended from 5.17 to 8 p.m. {: .page-start } page 31 {:#debate-47} ### APPROPRIATION BILL 1964-65 Message from the Administrator recommending appropriation for proposed expenditure announced. Bill presented by **Mr. Harold** Holt, and read a first time. {:#subdebate-47-0} #### Second Reading. (Budget Speech.) {: #subdebate-47-0-s0 .speaker-009MC} ##### Mr HAROLD HOLT:
HigginsTreasurer · LP -- I move - That the Bill be now read a second time. In speaking to this motion, it is my privilege to present the Budget proposals of the Government for the financial year 1964-65. By way of background to these proposals, I should first like to talk briefly and generally about the condition of our economy and about the possibilities ahead so far as we can see and judge them. Altogether, 1963-64 was a year of notable economic achievement for Australia. Admittedly we had a fair share of good fortune. At home, the seasons stood to us again. Abroad, the prices of a number of our main exports rose and some commodities, like wheat and sugar, found wider markets than we would normally have expected. Conceding that, however, I think it fair to say that the economy put up a good performance in terms of enterprise and effort and output. As opportunities showed up, industries and the people who work in them responded quickly and effectively. To take a few main points from the record - civilian employment increased in the twelve months to the end of May by 142,000 or 4.3 per cent, and unemployment fell by 33,000. At the end of June, the total of registered applicants for jobs was a little above 1 per cent, of the work force. Most of the very large number of young people coming forward for employment in the year were speedily and satisfactorily absorbed. Over the year there was a big increase in production as a whole and in all its main branches. A good many industries set up new output records; hardly any failed to show some improvement on the year before. Building and construction started the year high and kept on rising. Activity in transport, communications and the service occupations generally ran high. The volume of trade rose steadily and there was a further great rise in motor vehicle sales. On preliminary figures put out by the Commonwealth Statistician, wages and salaries increased last year by 9 per cent., company income by 10 per cent., farm income by 26 per cent, and gross national product by 9 per cent. The big rise in exports had, of course, a lot to do with this. Externally, the results of the year were quite spectacular. Exports ° reached £1,374,000,000 which was £309,000,000 above the high total of the previous year. Even though imports rose strongly in the later part of the year, our receipts from abroad greatly exceeded outgoings and our overseas reserves increased by £228,000,000 to a total of £854,000,000. By a considerable margin, that is the largest amount of overseas reserves we have ever held at the end of a financial year. Yet, notwithstanding all this rise in incomes and activity and expenditure, and despite considerable increases in wage rates and earnings, consumer goods prices remained stable until the later part of the year, when they began to show a rising trend. In the June quarter of this year the consumer price index was 1.7 per cent, higher than in the June quarter of 1963. Ii is noteworthy also that, while the exceptional rise in exports had added greatly to incomes, the disturbing effects which in other times it would probably have had have so far been fairly successfully contained. In this condition of high domestic activity and great external strength, we have moved into 1964-65. To state very broadly our expectations for the year, we think that there can be, and will be, a further considerable rise in employment, production and general activity but that, for sheer physical reasons, this can hardly be expected to equal the rather phenomenal results of 1963-64. Labour, if nothing else, is likely to be a limiting factor. There will be an increase in the work force this year - in fact a substantial increase. It may even be somewhat greater than that of last year. It will come partly from local sources - the excess of young people taking their first jobs over the number of older people leaving the work force for one reason or another - and there will be a considerable gain from migration, which is running strongly. But the difference is that, unemployment being now so low, there could scarcely be any great back flow of people to jobs from that source, such as occurred in 1963-64 when unemployment was reduced by 33,000. Besides, overtime working is already very high and it is probable that employers have already called quite heavily on the body of people in the community who normally take jobs only in times of strong labour demand. There have, of course, been shortages of some types of skilled labour for a long time past and these are getting more serious. Now, in some industries and areas, there are shortages of unskilled labour as well. Plant capacity seems generally adequate as yet and it is being increased all the time; but it must by now be much more extended than it was some time ago. Similarly as to materials - there are few signs of shortages but sources of supplies are being called upon more and more heavily. While the possibilities of increasing output are thus clearly limited, demand, in the shape of both current and capital expenditure, has been, and is, strongly on the rise, Last year, personal consumption expenditure increased by 6 per cent., public authority current expenditure by 13 per cent., private fixed capital expenditure by 11 per cent, and public authority capital expenditure by 11 per cent. All this adds up to a very formidable rate of growth in demand and there is every sign that it is continuing to increase. In particular, consumer spending, which is by far the largest element and which has shown the slowest increase so far, seems certain to rise as employment and earnings increase. The recent basic wage increases alone will add something like £100,000,000 a year to wage and salary incomes. Concurrently, there has been a,.jj-eat growth in the volume of money. Through 1963-64 the total of bank deposits, notes and coins available to the public - already high when the year began - rose by no less than 12 per cent. Savings bank deposits alone rose by £268,000,000. Besides this cash in hand, the business world and people at large are in a position to draw upon large overdraft limits established with the trading banks. In addition, of course, there is a great wealth of consumer credit facilities available. To put the position briefly, then, we have every reason to expect a further good increase in production this year. But there is also a strong likelihood that demand for goods and services will increase further and faster than supplies, at least in some quarters. Of course, we are in a position to afford more imports if we need them and there is no doubt that imports will in any case rise considerably. But we cannot readily get from overseas anything and everything we want and some of the things we do get are likely to be more costly than local products. Hence, our problem is very much one of keeping things in line. Employment and production, we can be sure, will continue to grow at a quite high rate. What we have to ensure is that demand does not rise excessively. Should it do so, there could soon be over-strong competition for goods and labour and materials. Costs and prices would be driven up. Speculation could break out again. Imports could rise excessively and lead to a greater rundown of our overseas reserves than we would care to see. That would be the end of the stability which has meant so much to the Australian economy and its people over the past several years. {: .page-start } page 33 {:#debate-48} ### EXPENDITURE- 1964-65 Details of estimated expenditure are set out and explained in Statement No. 3 attached to the Budget Speech. With the concurrence of honorable members, I incorporate in " Hansard " this statement and others to which I shall refer in the course of my speech. ; ie core of our budgetary problem this year lies in the fact that the total estimated expenditures of the Commonwealth are expected to exceed actual expenditures last year by £224,000,000. This follows upon an increase, excluding the effects of accounting changes, of £181,000,000 in 1963-64 and a total increase over the three years since 1960-61 of £440,000,000. Such a large rise in expenditure raises, first of all, a question as to the effect it will have on the economy. The broad answer to this is simple and certain - it will have a strongly expansive effect since, directly or indirectly, an increase in government ex* penditures adds to demand for goods and services. The actual magnitude of this impact is indicated as precisely as statistics will allow in the interesting and significant Statement No. 6 which is attached to this speech. That statement sets out in national accounts form an analysis of the Commonwealth expenditures and receipts for which provision is made in this Budget. The point here is that these expenditures will be making a substantial addition to demand at a time when, as I have just said, demand in general is rising strongly. To say this is not at all to concede that the rise in expenditures should or could be any less than it is. In fact, if the various main items which make up the total are taken one by one, I think it would have to be agreed that they are either inescapable as being the costs of services required by a fast-growing economy or, so far as they flow from new policy decisions, are entirely justifiable. Let me run briefly over these main items. Within the total increase of £224,400,000 we have made provision for- Defence Services - a total of £296,800.000 which is an increase of £36,300,000 over expenditure in 1963-64; An addition of £21,000,000 to the amount to be raised for State borrowing programmes for works and housing; A net addition of £31,700,000 for grants to the States. For obvious reasons there will be no repetition this year of the £20,000,000 grant made last year for employment giving activities; on the other hand, financial assistance grants will increase under the formula which governs them by £22,600,000, special grants to Western Australia and Tasmania by £4.400,000, aid road grants by £7,000,000 to a total of £65,000,000, assistance for universities by £2,100,000 to a total of £19,000,000; and there will, besides, be increased payments amounting to £4,300,000 for various development projects and approximately £10,000,000 for science laboratories and technical training facilities; Increased expenditure to be made from the National Welfare Fund this year amounting to £35,800,000 and bringing the total to £452,200,000. Besides the cost of previously existing benefits, this includes provision for increased child endowment in accordance with our election undertakings and £10,000,000 for home savings grants. An increase of £24,200,000 for Capital Works and Services, which covers most Commonwealth constructional activities in Australia and also includes an increase this year of £6,000,000 for rail standardisation works in South Australia and Western Australia; An increase of £32,800,000 for redemption of maturing debt. I stress this point because this comes on top of a provision last year of about £90,000,000 for this purpose. There is an exceptional total of £347,800,000 of debt falling due within Australia this year and we have thought it advisable to allow for a substantial part of the debt being taken out in cash instead of being converted, hence the provision of this additional £32,8000,000; Amounts of £3,000,000 for petrol prices stabilization, £1,800,000 for increased cost of the superphosphate bounty and £9,300,000 for wool promotion. Of the latter amount, £4,700,000 will be raised from wool growers. These major items add up to £195,900,000, which is more than 87 per cent, of the total increase of £224,400,000. The remaining £28,500,000 represents the net increase in our various other budgetary commitments. There have been savings in some items such, for example, as a reduced liability, estimated at £10,800,000, on account of the Wheat Industry Stabilisation Scheme, and a reduction of £3,700.000 in the amount provided for the Mount Isa railway. On the other hand, costs of administration over the whole field, including the Business Undertakings, have been substantially increased by increases in the basic wage and in margins. The Government has naturally been much concerned at the size of this increase in expenditure and its budgetary and economic implications. We have made a point of giving prompt effect to our election undertakings and all but two of those with direct budgetary consequences are now in operation. Of these two, I may say that negotiations relating to the stabilisation of petrol prices in rural areas are in train and we hope to bring the scheme into effect by the end of this year. With that possibility in view, an amount of £3,000,000 has, as I have mentioned, been included in this Budget. The full year cost will, of course, be considerably greater than this. Legislation to establish the Housing Loan Insurance Corporation will be introduced during this session. Beyond this, however, our general line has been to avoid any further commitments of a major kind which would involve adding to expenditure in this financial *year.* We have had very much in mind the state of the economy and the importance of keeping down the pressure of demand. We have also had to give serious consideration to the trend of defence expenditure and its significance for the Budget. I do not think anyone seriously questions what we are doing to step up defence preparations but the fact must be faced that defence preparations are costly - costly in terms not only of money but of resources. The £297,000,000 provided for this year amounts to an increase of £99.000.000 or 50 per cent, over expenditure in 1960-61, four years ago. That increase is strongly reflected in this Budget. But since much the greater part of our defence spending takes place in Australia, this also represents a heavy additional call on manpower, material- and equipment. In other words, it is also having a significant influence on our economic situation. {:#subdebate-48-0} #### Development As to special developmental projects in the States, the general position is that we now have a large programme of them in hand, some still in the initial stages but others reaching the stage of rapid progress and heavy expenditure. For the projects to which we are already committed in various States, an amount of £23,730,000 is provided in the current Budget, this being an increase of £6,431,000 over expenditure last year; and I might mention that, beyond 1964-65, we have an estimated further commitment in respect of these projects exceeding £70,000,000. Plainly, it would be a mistake at this stage, especially in view of the labour situation, to enlarge further the present big volume of works activity. Indeed, it would well be selfdefeating if competition for labour already scarce were to delay progress and force up costs not only for new projects but for those already under way. Nevertheless, we do not want the programme to lose momentum. There is ample work in hand now but we want to ensure continuity of progress in the years ahead. A number of projects submitted to us by State Governments have been under consideration. Some of these require further investigation but we have now decided to offer financial assistance to an extension of the Comprehensive Water Supply Scheme in Western Australia under which water will be reticulated to farms and towns in regions to the north and east of Northam and east of Narrogin. Subject to the Government of Western Australia matching our contribution on a £ for £ basis, we will make advances to that Government up to a maximum of £5.250,000. Our contributions, however, will not begin until the financial year 1965-66. I might also say here that, as announced recently by the Minister for National Development and following a recommendation by the Australian Water Resources Council, the Government has decided to support an accelerated programme in the States for the measurement of surface water resources. In addition, we have decided to offer the States financial assistance towards an accelerated programme of investigation of underground water resources. It is expected that legislation for these purposes will be introduced during the current parliamentary session and, meanwhile, provision has been included in the Budget for payments to the States of £402,000 in 1964-65. Concurrently with the programme of assistance to the States, the Commonwealth is itself undertaking an extensive programme of water resources investigation in the Northern Territory. {:#subdebate-48-1} #### Papua-New Guinea Our grant to the Papua-New Guinea Administration this year will be £28,000,000, which is an increase of £2,751,000 on the grant for 1963-64. This element in the Budget has been one of those receiving the greatest percentage year by year, reflecting our recognition of the responsibility we have to this part of the world and also reflecting our determination to maintain rapid progress in the area. {:#subdebate-48-2} #### Oil Search To encourage further exploration for oil, the Petroleum Search Subsidy Act has been extended for a further three years and an amount of £5,000,000 has been included in the Budget for payment of subsidies on oil search activities in *1964-65.* {:#subdebate-48-3} #### Social Services In accordance with our practice at the time of each Budget we have reviewed the general field of social service benefits and have decided to increase some of them. We propose to increase the rates of age, invalid and widows' pensions by 5s. a week, thus raising the standard rate of pension payable to single age and invalid pensioners and to widow pensioners with children from £5 15s. a week to £6 a week. The married rate of pension will be raised from £5 5s. to £5 10s. a week so that the combined rates payable to a married couple, both pensioners, will be increased from £10 10s. a week to £11 a week. For widows without children the rate of pension will rise from £5 2s. 6d. a week to £5 7s. 6d. a week. It is also proposed to increase the allowance payable to persons suffering from tuberculosis by 5s. per week in the case of a single person and by 10s. per week in the case of a man and wife. Increased pensions will be payable on the first pension pay day after the necessary legislation has been passed. The estimated cost of the increased benefits is £10,430,000 in a full year and £7,825,000 in 1964-65. {: #subdebate-48-3-s0 .speaker-009MC} ##### Mr HAROLD HOLT:
LP -- If the honorable gentleman had been listening, he would have heard me mention earlier a figure of £452,000,000 for social welfare this year. He would be very proud if he could be the leader of a government which made that kind of provision for social welfare in this country. {:#subdebate-48-4} #### Repatriation Benefits We have also decided to increase a Dumber of major repatriation benefits. The special (T.P.I.) rate war pension is to be increased by 10s. per week from £13 15s. to £14 5s. per week. The genera] rate pensions for exservicemen and wives are both to be increased. The full general (100 per cent.) rate will be increased from £5 15s. to £6 and the "wife's" rate from £1 15s. 6d. to £2 0s. 6d. per week. War widows' pension will also be increased by 5s. from £5 15s. to £6 per week. The ex-serviceman's service pension will be increased by 5s. This increase applies both to " single " pensioners whose rate rises from £5 15s. to £6 per week and to married pensioners where the increase is from £5 5s. to £5 10s. per week. There is to be an adjustment in the amounts paid to appellants for loss of earnings, the cost of transport and their subsistence while absent from home when attending tribunal hearings. This adjustment will result in increased payments to bring them into line with payments made where the attendances are for medical attention or for other purposes in connection with pension claims. Increased pensions will be payable on the first pension pay day after the necessary legislation has been passed. The cost of these increases in war and service pensions is estimated to be £3,920,000 in a full year and £2,950,000 in 1964-65. {:#subdebate-48-5} #### Commonwealth Employees' Compensation Legislation will be brought down to increase the benefits provided under the Commonwealth Employees' Compensation Act 1930-1962, which have not been varied since 1959. The basic lump sum payable to dependants upon the death of a Commonwealth employee will be increased from £3,000 to £4,300 and the additional amount of £100 payable in respect of each child under 16 years of age will be replaced by a provision for weekly payments until the child reaches 16 years of age, subject to a minimum total payment of £100. The rates of weekly payments for incapacity will be increased from £10 to £11 lis. for an unmarried employee and from £13 12s. 6d. to £15 8s. lor a married man with a wife and one child. The cost of these increases is estimated to be £200,000 for a full year. {:#subdebate-48-6} #### Total Expenditure Taking into account the various proposals I have outlined, total Commonwealth expenditure in 1964-65 is estimated to be £2,511,100,000. {: .page-start } page 36 {:#debate-49} ### REVENUE AND OTHER RECEIPTS, 1964-65 I turn now to the question of how this formidable amount of expenditure is to be financed. For a number of reasons this is likely to be a comparatively good revenue year. So far as income tax is levied this year on the incomes of individuals, companies and other businesses derived in t963-64, it will reflect the generally buoyant conditions of that period. There is perhaps one offset to this worth mentioning. The amount of provisional tax debited last year to taxpayers subject lo provisional tax was comparatively large and since, in this year, it becomes a credit in the assessment of those taxpayers, it will diminish revenues collected from them. As to the current year, there will certainly be a substantial rise in wage and salary earnings, partly because of increased employment and partly through increases in wage rates and other earnings. Pay as you earn collections should, therefore, increase considerably and there will also be some increase in pay-roll tax revenues. We can expect a substantial further increase in sales of goods subject to sales tax, although it seems hardly likely that sales of motor vehicles could increase again by as much as they did in 1963-64, when they rose by 16 per cent, to the 400,000 a year mark. Also, revenues this year will bear a full twelve months cost of the removal of sales tax from foodstuffs in our last Budget. With imports likely to increase considerably, there should be a fairly large increase in Customs revenue and, with consumer spending generally on the rise, there should also be an appreciable increase in Excise collections from the major items such as petrol, beer, spirits and cigarettes. Accordingly, in the light of this general prospect, we have not felt it necessary to take a conservative view of taxation revenue possibilities and have put our estimate of total collections, on the basis of tax rates as they stand, at £1,759,200,000, this being an increase of approximately £160,500,000 on the amount obtained in 1963-64. For much the same reasons, revenues from Business Undertakings are likely to rise and the estimates show an increase of about £12,500,000. For various reasons, miscellaneous revenues are likely to be somewhat less than last year. On the other hand, the receipts of the National Debt Sinking Fund are expected to increase this year by about £5,500,000 and various other trust fund balances are estimated to show a net increase of about £6,400,000. All told, therefore, we estimate that, with taxation and other charges on their present basis, the total of revenue and other receipts available to us in 1964-65 would be £2,177,600,000, an increase of £180,900,000 over that of 1963-64. {: .page-start } page 37 {:#debate-50} ### THE OVERALL POSITION Estimated total expenditures being £2,511,100,000, this would mean that, to obtain the necessary cash to meet our expenditures in the year, our total call on borrowings would amount to £333,500,000. Last year our total call on borrowings for budgetary purposes was £290,000,000, so that, in this financial year, there would be an increase on that very high total to the extent of £43,500,000. {:#subdebate-50-0} #### Estimated Loan Raisings Last year, we succeeded in raising by way of public loans an amount of £317,700,000, of which £281,100,000 was raised in Australia. This was a peace time record for borrowings in Australia and it undoubtedly owed much to certain exceptional circumstances and especially to the great rise which occurred in monetary liquidity. At this stage it does not seem likely that we will be raising any new loans abroad this year for works and housing programmes on what we would regard as reasonable terms and conditions. We will make a further drawing, estimated at £10,615,000, against the International Bank loan for the Snowy Mountains Scheme; but that is all. At home it seems probable that liquidity will remain high, but it is to be doubted whether there will be anything like the increase which occurred last year. For that, if for no other reason, it might be rather much to expect that we will be able to borrow as much on the home market as in 1963-64. On the other hand,, there has now been a run of three years in which the average of local raisings has been above £250,000,000 and there is no obvious reason why, in this year, our borrowings should not again be of that order. Obviously, there is a range of possibilities but we have settled on £275,000,000 as perhaps a reasonable figure for the overall amount we can reckon on borrowing in this financial year. On this figuring, there would be a shortfall, in terras of revenue and loan raisings from the public, of £58,500,000 which we would have to finance by temporary borrowings - mainly if not entirely by calling on the Reserve Bank. In 1963-64 we ended the year with a cash surplus of £27,700,000. {: .page-start } page 38 {:#debate-51} ### FINANCIAL POLICY From a budgetary standpoint, then, the position is that we estimate an increase in total expenditure of £224,000,000, an increase in revenues and other receipts of £181,000,000, a borrowing gap of £333,500,000, loan raisings of £275,000,000 and a deficiency of £58,500,000 to be financed from temporary sources. In point of net cash outcome, this would represent a deterioration of £86,200,000 on the results of last year. From a strictly economic standpoint the position is shown in Statement No. 6 which sets this matter out in national accounts form. From this it can be seen that, at present levels of taxes and other charges, the net increase in government indebtedness over the year would amount to £279,000,000 as compared with an increase of £247,000,000 last year. In other words, the amount added, directly or indirectly, to demand through Commonwealth expenditure would exceed by this large sum the amount taken from incomes by way of taxation and other receipts. Tn a year when so many other expansive forces are at work in the economy, this would only be characterised as inflationary finance. Frankly, we are not disposed to contemplate a Budget of that character. After much deliberation, therefore, we have concluded that there is no alternative to an increase in taxation and certain other charges sufficient to reduce signicantly our prospective call on borrowings and eliminate altogether any need to call on Reserve Bank finance. As a broad target, we have aimed at an overall result not substantially different from that of last year, 1963-64. Apart from economic considerations such as those just discussed, there is a financial aspect of the matter which, I feel, should be brought to notice. During the past three years in which expenditures have risen steeply, there has been a long sequence of major tax concessions. These were made for a reason which was entirely sound under the circumstances - that of stimulating the economy. But while the need for such stimulation is now well behind us, the cumulative effect of these concessions has been to reduce quite heavily the resources currently available to us. lt is estimated that, in the present year, the various tax concessions given since 1960-61 would have a cost to revenue above £100,000,000. Perhaps I could emphasise the point in this way. Along with the many other factors contributing to the increase in our expenditure, defence spending has risen quite spectacularly. The amount of £297,000,000 provided for defence services in this Budget is £99,000,000 or 50 per cent, greater than actual expenditure in 1960-61. Over the same period, however, sources of revenue have been reduced by tax concessions to the extent of more than £100,000,000. The implication is plain enough. Our command of resources must bc strengthened. Defence spending has increased strongly and will increase further. We simply have to put ourselves into a better position to pay for it. {:#subdebate-51-0} #### Taxation We have therefore decided to introduce a scries of taxation measures which I shall now explain. {:#subdebate-51-1} #### Income Tax As to income tax on individuals - for the last three income years a 5 per cent, rebate has been allowed against the tax payable by individuals. In the changed circumstances of this year the Government finds itself unable to continue this rebate in respect of 1964-65 incomes. Appropriate adjustments will accordingly be made to the instalment deductions from salaries and wages paid on or after 1st October next and to provisional tax for 1964-65. Discontinuance of the rebate is estimated to result in additional revenue of £35,000,000 in a full year and £30,800,000 in this financial year. Next, as to income tax on companies, it is proposed to increase by 6d. in the £1 the rates of tax payable on incomes derived by companies during the income year 1963-64. The rate of 10s. in the £1 payable where there is an insufficient distribution of in-The increased rates will apply to investment come by a private company will not be incomes of funds derived during the income changed. year 1964-65. It may perhaps be contended that, as there has been no reduction of income tax rates on companies during the period when individuals have had the advantage of a 5 per cent, rebate, it is inappropriate to increase rates on companies at this juncture. We considered this point. On the other hand, we recalled that, over recent years, companies have had a major share in the benefit of a very wide range of concessions which are still in force. Amongst these have been such important measures as the investment allowance for plant used in manufacturing, increased retention allowances for private companies, the rebates of pay-roll tax to encourage export sales and a variety of concessions for mining enterprises. Some of these have been available to a broad range of companies, others to companies operating in particular fields of production. In all, however, the value of these concessions adds up to a considerable sum. It is estimated that, in the current year, companies as a whole would be paying a full £30,000,000 less in taxation because of these concessions. Since the financing of Commonwealth expenditures requires a certain level of revenue, whatever is foregone through concessions of this kind, which are wholly or principally enjoyed by companies, must be made up in additional collections from other classes of taxpayers. For the most part, the burden falls on personal income or personal expenditure. Of total income tax collections, income tax on companies has declined as a proportion of the whole from 36.1 per cent, in 1958-59 to 31.3 per cent, in 1963-64. Meanwhile, the proportion contributed by pay as you earn taxpayers has increased from 38.7 per cent, to 42.2 per cent. The investment income of a superannuation fund that does not invest a sufficient proportion of its assets in public securities is taxed at the same rates as apply to the mutual income of a life assurance company. In consonance with the proposed increase in the rates of tax payable by life assurance companies, the rates for superannuation funds are to be increased by 6d. in the £1 {: #subdebate-51-1-s0 .speaker-009MC} ##### Mr HAROLD HOLT:
LP -- We are not looking for popularity; we are expressing responsibility. {: .speaker-BV8} ##### Mr Calwell: -- You did not tell the people this before the last election. {: .speaker-009MC} ##### Mr HAROLD HOLT: -- We told them we would give them growth with stability and that is what this Budget is designed to ensure. The gain in revenue from the increased rates is estimated to be £22,000,000 in a full year and £20,000,000 in 1964-65. {:#subdebate-51-2} #### Aged Persons In conformity with the proposed increase in age pensions, it is intended to raise the income level up to which the age allowance exemption is available to residents of Australia who meet the age qualification. This age is sixty-five years for men and sixty years for women. At present no tax is payable by an aged person whose net income does not exceed £481. In future, the exemption will apply to net incomes not exceeding £494. {: #subdebate-51-2-s0 .speaker-009MC} ##### Mr HAROLD HOLT:
LP -- Your ordinary common sense ought to tell you that that is relative to the pension provision. In the case of a married person qualified by age, exemption will be authorized where the combined net income of the husband and wife does not exceed £936 compared with £910 at present. The cost to revenue of these adjustments will be £400,000 in a full year and £200,000 in 1964-65. Commonwealth Committee on Taxation. At this point I should perhaps say that, later in this session, the Government will introduce legislation to deal with matters arising out of the report of the Commonwealth Committee on Taxation and relating to the prevention of tax avoidance. We have made an exhaustive study of these matters and for some months past a special committee of Cabinet has been considering them. Our aim is to ensure that, in the interests of the great body of taxpayers who do not resort to tax avoidance practices, there will be an adequate tightening up of the law. At the same time, we have to take care that anything we do will not prove burdensome to unoffending parties. {:#subdebate-51-3} #### Sales Tax As a further measure to secure additional revenue, it is proposed to increase from 221/2 per cent, to 25 per cent, the rate of sales tax on motor vehicles of all classes now taxed at 221/2 per cent. This increase will commence on 12th August, 1964. Since rates of sales tax on motor vehicles were reduced in February 1962, vehicle sales have, of course, increased greatly. Thus, in the June quarter of 1962 total new registrations were 77,500. In the June quarter of this year they were 104,600, and for 1963-64 as a whole the total was 400,000. It is estimated that the increase in sales tax proposed will produce additional revenue amounting to £6,250,000 in a full year and £5,000,000 for the financial year 1 964-65. {:#subdebate-51-4} #### Customs and Excise Duties TOBACCO PRODUCTS. Rates of customs and excise duties on cigarettes and cigars will be increased by 5s. 3d. per lb. and rates on manufactured tobacco by 2s. per lb. The increases, which will come into effect immediately, are broadly equivalent to an increase of 3d. for either a packet of twenty king-size cigarettes or a 2-oz. packet of tobacco. The additional revenue from these proposals is estimated to amount to £14.100,000 in a full year and £12,500,000 in 1964-65. ABOLITION OF DUTY ON CATHODE RAY TUBES. Because of insuperable administrative and legal problems, the existing duty of £6 on television cathode ray tubes, which was imposed to help pay for the national television service, is to be abandoned. To compensate for the loss of revenue involved, it has been decided to make an increase of £1 in the television viewers' licence fee-- {: #subdebate-51-4-s0 .speaker-009MC} ##### Mr HAROLD HOLT:
LP -- The honorable gentleman who a moment ago said something about company tax now talks about us slugging the worker. I am glad to say that such is the prosperity in this country that we have a higher per capita availability of television sets than is the case in almost any other country you can name. I repeat that, to compensate for the loss of revenue involved, it has been decided to make an increase of £1 in the television viewer's licence fee, thus preserving the concept that the cost of the National Television Service should be met by special levies on those for whom it is provided, namely, persons with television sets. The additional revenue expected in 1964-65 from television viewers' licences is £1,725,000, an amount that will approximately equal the loss in excise revenue on cathode ray lubes. Such is the level of competition in this industry that 1 think it not unreasonable to assume that the savings effected by the manufacturers on these tubes will be passed on to the purchasers of the television sets. {:#subdebate-51-5} #### Broadcasting and Television STATIONS LICENCE FEES. Because of difficulties encountered in the administration of the Broadcasting and Television Stations Licence Fees Act. the Government has decided to revise the basis of the licence fee and to increase the rates of assessment. This measure will be announced and explained in more detail by the Postmaster-General. The total revenue expected to accrue from these changes is £320,000 in a full year and £302,000 in 1964-65. {: #subdebate-51-5-s0 .speaker-009MC} ##### Mr HAROLD HOLT:
LP -- The honorable gentleman says: " Chicken feed ". I hope that the television stations will take a little consolation in the thought that this impost is minor compared to what they would have had to face from a government led by the honorable gentleman opposite. {: .page-start } page 41 {:#debate-52} ### COMBINED BROADCAST LISTENERS' AND TELEVISION VIEWERS' LICENCE FEES At the present time it is estimated that 62 per cent, of Australian homes have licensed television receivers. Nearly all of these homes also have broadcast receivers. It has been decided, therefore, that the time is opportune to introduce a combined licence to cover bo'.h broadcast and television receivers. A compulsory combined receiving licence will have many advantages from an administrative viewpoint. The fee for a combined licence will be 5s. less than the total fees payable for ordinary rate separate licences. Separate licences will be retained in those cases where persons possess only one type of receiver. An applicant for a television viewer's licence only will bc required to complete a statement to the effect that neither he, nor any member of his family, ls in possession of a broadcast receiver in respect of which a licence is required. The combined licence is not intended to apply to hirers and lodging bouses. Including the increase of £1 in the television viewers' licence fee, which I have already announced in conjunction with the abolition of duty on television cathode ray tubes, the new combined licence fee will be £8 10s., and separate viewers' and listeners' licences will cost £6 and £2 15s. respectively. The necessary amendments to the Broadcasting and Television Act will be introduced by the Postmaster-General at a later date. {:#subdebate-52-0} #### Am Navigation Charges As a further step in its policy of seeking to recover from air transport operators the cost of maintaining and operating airport and airway facilities, the Government has decided to increase by 10 per cent, the rates of air navigation charges payable by all users. The increases will take effect from 1st January 1965, and are estimated to bring in £64,000 additional income in 1964-65 and about £192,000 in a full year. {: .page-start } page 41 {:#debate-53} ### POST OFFICE CHARGES We have made a general review of the finances of the Post Office in the light of certain important considerations. The Post Office is Australia's largest business undertaking and its activities have major budgetary and economic implications. The demand for its services, particularly for telephones, has been growing rapidly. The meeting of this demand necessitates very large capital expenditure, which in turn involves a heavy demand on resources. It is essential that its activities be conducted in accordance with sound business and commercial practice, that is, that it should be required to meet its normal operating costs from its own resources. Since the last major adjustment of Post Office charges in October 1959, the direct and indirect effects of higher wage rates have added something like £17,000,000 to yearly operating costs, and for three successive years there have been operating losses on the telephone service, which faces increasingly heavy losses at current charge rates. Demand for new telephone services is at an all-time high due principally to the provision of services at less than operating costs and the buoyant state of the economy. Despite sharply increasing capital expenditure on new facilities, the number of unsatisfied applications has been growing. At current charges every new connection adds to the losses being incurred. The Government has therefore decided that it is necessary for Post Office charges for telephone services to be adjusted to levels which reflect the cost of providing those services. This will ensure that future demand will not be artificially stimulated to the extent that it has been up to the present time. Details of the increased charges, which will operate from 1st October 1964 will be announced by the Postmaster-General. The increases will relate principally to telephone rentals, accompanied by a simplification of the charging and tariff structure. The service connection fee, which has remained at £10 since its introduction in 1956, will be increased to £15, and there will also be adjustments to charges for miscellaneous subscribers' apparatus and private telephone and telegraph lines. I might well mention here that, for Post Office capital works, there is an allocation for 1964-65 of £77,000,000, representing an increase of over 12 per cent, on actual expenditure in 1963-64. The extra funds will be spent largely on connection of new telephone services, the development of the trunk line network, television relay link facilities, including the Brisbane-Cairns link, which will also improve communications to the north, and on buildings to provide postal and telephone service. In making this very substantial provision the Government recognizes the many special projects to which the Post Office is committed in its efforts to provide better service, and the desirability of satisfying as far as possible the demand for new telephone connections. The additional revenue expected to accrue from the new charges is £9,500,000 in a full year and £8,500,000 in 1964-65. {: .page-start } page 42 {:#debate-54} ### BUDGET SUMMARY These increases in taxation and charges are estimated to produce, in all, £77,000,000 more revenue in 1964-65 - £77,000,000 I would remind you against a total estimated expenditure of some £2,511,000,000 or roughly an increase in charges of 3 per cent.- and £87,000,000 in a full year. Estimated revenue and other receipts thus become £2,254,600,000 and, if loan raisings reach our assumed figure of £275,000,000, overall cash receipts will amount to £2,529,600,000. Total expenditure being estimated at £2,511,100,000, there would then be an excess of cash receipts over expenditure of £18,500,000. {: .page-start } page 42 {:#debate-55} ### CONCLUSION During recent times a good deal has been happening in Australia to suggest that we may be moving up to a phase of growth faster and more varied than anything we have seen hitherto. I am thinking here of oil and the great mineral discoveries, which alter our whole long-term outlook, the rising stream of migrants, the evident strong interest of overseas people in investment possibilities here, the thrust that many of our chief industries are making towards higher levels of capacity and output. It could, I think, be significant that the advance made in the past couple of years has not been confined to one or two sectors; it has been shared by farming, mining, manufacturing - in fact it has been more or less universal. Fairly clearly, the idea that bigger things* , lie ahead has taken hold and people are acting upon it. The question is - where will it lead? Conceivably, it could lead nowhere in particular but prove to have been a mere passing flurry occasioned by recent favourable events. I doubt this; there is too much of substance in the move for it to have that transient character. Possibly it could build up into yet another boom which in due time would peter out. That is undeniably a risk but it is something we do not want to happen and must do our utmost to prevent. On the other hand, in the context of an expanding world and with the momentum already evident here, we could move on from where we are now to an era of quite unprecedented expansion. Certainly the foundation for a strong, steady advance has been well laid in the past two years. Our external position has been greatly strengthened so that we do not have to fear as much as we often did in the past that any major rise in domestic activity would bring on balance of payments troubles. We still have the basic conditions of stability within Australia and I believe that, with good national teamwork, they can be preserved. But if and when circumstances arise to threaten stability, such as the big rise in expenditure, including defence expenditure, of which I have spoken earlier, at a time when our resources are already fully committed, it will not do for us merely to sit idly by and hope for the best. We must take firm and positive action in these circumstances to preserve stability. In the Budget we propose action directed to this purpose. I am confident that the community will recognize the need and recognize also that, in what we propose, we are acting in their own best interests. We believe also that in this Budget we have achieved a realistic and fitting balance between the claims on national resources arising from defence, development and social welfare. I commend the Budget to the Parliament. Total expenditures, other than redemptions, increased by £200,664,000 in 1963-64 and total receipts, excluding loan raisings, increased by £214,282,000 over the corresponding figures for 1962-63. Both increases are affected by changes in accounting procedures; these changes excluded, the increases would have been £22,017,000 less in each case. The excess of expenditures (other than redemptions) over receipts (excluding loan raisings) in 1963-64 was £197,842,000, which was £13,618,000 less than in 1962-63. Allowing for redemptions, the excess of total commitments over receipts was £290,003,000 representing the total call on borrowings in 1963-64. The corresponding amount for 1962-63 was £301,013,000. In 1963-64, the total amount raised by way of loans in Australia and overseas amounted to £317,669,000, which exceeded the total call on borrowings by £27,666,000. Expenditure ordinarily charged to the Consolidated Revenue Fund, including £38,715,000 of expenditure on Defence Services and £11,701,000 of expenditure on the Snowy Mountains Hydroelectric Scheme charged to the Loan Fund, but excluding the payment to the Loan Consolidation and Investment Reserve and expenditure on the redemption of Treasury Bills, totalled £1,922,230,000 in 1963-64. This was £184,052,000 greater than in 1962-63. Receipts of the Consolidated Revenue Fund Totalled £1,904,688,000, or £219,302,000 more than in 1962-63. After meeting expenditure of £18,000,000 on the redemption of Treasury Bills, the Consolidated Revenue Fund had available for payment to the Loan Consolidation and Investment Reserve an amount of £14,875,000. Details of the Consolidated Revenue Fund results are given in Part B of this Statement. At its June, 1963, meeting, the Loan Council agreed to a borrowing programme of which £272,000,000 was for State works and housing in 1963-64. As State domestic raisings amounted to £10,016,000, the amount for State works and housing to be met from Commonwealth borrowings in 1963-64 was £261,984,000 or £12,866,000 more than the corresponding figure in 1962-63. Total loan raisings for the year amounted to £317,669,000, of which £12,116,000 were receipts from the International Bank loan for the Snowy Mountains Hydro-electric Scheme and the balance of £305,553,000 was the cash proceeds of public loans raised in Australia and overseas during the year. In 1962-63, total loan raisings amounted to £317,072,000, of which £14,236,000 were receipts from the International Bank loan for the Snowy Mountains Hydro-electric Scheme and £302,836,000 were the cash proceeds of public loans raised in Australia and overseas. Of the cash proceeds of the loans raised in Australia and overseas during the year of £305,553,000, an amount of £20,238,000 was applied to the redemption of maturing securities and an amount of £35,485,000 was applied to expenditure on Defence Services, leaving £249,830,000 available for Slate works and housing programmes and War Service Land Settlement. As an amount of £261,984,000 was required to finance State works and housing programmes and £4,262,000 to finance payments to the States for War Service Land Settlement, it was necessary to draw on Loan Fund balances to the extent of £16,416,000. Expenditure on the Snowy Mountains Hydroelectric Scheme charged to the Loan Fund in 1963-64 amounted to £11,701,000, compared with £13,100,000 in 1962-63. The difference of £415,000 between expenditure on the Scheme from the Loan Fund and drawings against the International Bank loan, £12,116,000 in 1963-64, arose from differences in timing between expenditures and drawings against the loan. Redemptions of maturing securities, repayments of loans from the International Bank, market repurchases and other expenditure from the National Debt Sinking Fund totalled £71,923,000. Securities totalling £20,238,000 were redeemed from loan proceeds so that total redemptions, &c, for the year were £92,161,000, or £2,068,000 more than in 1962-63. The income of the National Debt Sinking Fund in 1963-64 was £89,516,000 or £7,698,000 more than in 1962-63. Advances to Queensland for the Mount Isa railway project amounted to £6,050,000 in 1963-64, compared with £5,959,000 in 1962-63. An amount of £38,715,000 of expenditure on Defence Services was charged to the Loan Fund in 1963-64 of which £35,485,000 was met directly from loan proceeds. Further details of the various loan transactions of the Commonwealth during 1963-64 are given in Part C of this Statement. The Commonwealth's transactions resulted in an overall surplus of £27,666,000, which was applied as follows: - {:#subdebate-55-0} #### Revenue Total revenue collected in 1963-64 amounted to £1,904,688,000, or £67,467,000 more than the Budget estimate; revenue from taxation amounted to £1,598,708,000 or £48,763,000 more than the Budget estimate. Customs revenue was £5,427,000 greater than the Budget estimate, reflecting a higher level of imports than had been expected. Excise collections were £3,586,000 greater than the Budget estimate. Although clearances of tobacco products for Excise were slightly below the estimate, clearances of other commodities were above the estimates. Sales Tax collections exceeded the Budget estimate by £6,958,000, principally because sales of passenger motor vehicles were higher than had been expected. Income Tax collections from individuals exceeded the Budget estimate by £29,289,000. Gross " payasyouearn " collections were £15,747,000 greater than the Budget estimate, reflecting the fact that average wages and employment increased by more than had been expected. After deduction of refunds of excess tax deducted, which exceeded the estimate by £2,126,000, net " pay-as-you-earn " collections were £13,621,000 greater than had been estimated. Net collections on assessments were £15,668,000 greater than the Budget estimate. The amount payable on current assessments issued during 1963-64 was £6,000,000 greater than estimated and reductions of provisional tax by way of self-assessment were £7,000,000 less than estimated. In addition, the rate of collection on assessments payable in 1963-64 was greater than normal. Collections of Income Tax from companies were £3,235,000 greater than the Budget estimate. The amount available for collection in 1963-64 and the rate of collection thereon were slightly more than had been estimated. Collections of Dividend (Withholding) Tax were £1,032,000 less than the Budget estimate. The amount of dividends paid by Australian companies to non-residents was lower than had been expected. Collections of Pay-roll Tax were £278,000 less than the Budget estimate. Rebates of Pay-roll Tax under the export incentive scheme were greater than estimated, but this was partly offset by higher than estimated gross collections of Pay-roll Tax in respect of wages paid in 1963-64. Collections of Estate Duty and Gift Duty exceeded the Budget estimate by £1,580,000. The numbers of estates assessed to duty were higher than expected. Total revenue from Business Undertakings was £6,502,000 greater than the Budget estimate. Receipts from the Post Office accounted for £5,832,000 of this increase, reflecting a higher than expected growth in postal, telephone and telegraphic traffic. Revenue from Commonwealth Railways exceeded the Budget estimate by £423,000. Receipts from Territories were £2,094,000 greater than the Budget estimate. Receipts from premiums on sales of leases in the Australian Capital Territory were £1,490,000 greater than estimated. Other Revenue exceeded the Budget estimate by £10,108,000. Repayments of unrequired balances from the Korean Operations Pool Trust Account exceeded the estimate by £1,137,000; miscellaneous receipts of the Department of Supply were £1,047,000 greater than estimated; the sale of Tasman Empire Airways Limited shares, which was not provided for in the Budget estimates, realized £1,006,000; repayments by settlers under the War Service Land Settlement Scheme were £947,000 greater than estimated. Other receipts to exceed the estimates were Stevedoring Industry Charge £5,161,000 (an increase of £661,000); Reserve Bank profits £15,167,000 (an increase of £667,000); Commonwealth Banking Corporation profits £1,145,000 (an increase of £245,000); interest on investments of the General Trust Fund £1,739,000 (an increase of £453,000); sales of property exceeded the Budget estimate by £558,000. Recoveries from the sale of ships under the Shipbuilding Subsidy arrangements were £596,000 less than estimated. {:#subdebate-55-1} #### Expenditure Excluding the payment to the Loan Consolidation and Investment Reserve and expenditure on redemption of Treasury Bills, expenditure charged to the Consolidated Revenue Fund totalled £1,871,814,000 in 1963-64, which was £34,593,000 greater than the Budget estimate. However, expenditure on Defence Services charged to the Loan Fund amounted to £38,715,000 in 1963-64, compared with the Budget estimate of £62,500,000, and expenditure on the Snowy Mountains Hydroelectric Authority charged to the Loan Fund amounted to £11,701,000, compared with £13,100,000 estimated in the Budget. Total expenditure including these amounts charged to the Loan Fund, but excluding the payment to the Loan Consolidation and Investment Reserve and expenditure on the redemption of Treasury Bills, was £1,922,230,000 in 1963-64 or £9,409,000 greater than had been estimated in the Budget. Expenditure on Defence Services (including the amount charged to Loan Fund) was £8,791,000 more than had been estimated. Expenditure on purchase and manufacture of aircraft for the R.A.A.F. and the R.A.N, was £9,477,000 greater than had been estimated. This included an amount of £8,968,000 in respect of the purchase of F IIIA aircraft, which was not provided for in the Budget. Expenditure on equipment and stores for the R.A.N, exceeded the Budget estimate by £864,000. Expenditure under the Commonwealth and State Housing Agreement on housing for members of the three services was £307,000 more than had been estimated. Short-falls compared with the estimates included £986,000 in expenditure on equipment and stores for the R.A.A.F. and £369,000 in expenditure on Navy research and development. Net recoveries from Other Administrations exceeded the estimate by £1,331,000. Payments to or for the Slates were £2,065,000 less than the Budget estimate. The amount of financial assistance grants paid to the States in 1963-64 under the provisions of the States Grants Act was £368,000 less than the Commonwealth Statistician's preliminary estimate of the grants, which was the estimate included in the Budget. Payments to the States for universities were £1,049,000 less than estimated in the Budget; the main short-falls were in expenditure on teaching hospitals (£580,000) and on buildings and furnishings (£526,000). Payments to Queensland for brigalow lands development and beef cattle roads were £450,000 and £453,000, respectively, less than provided for in the Budget. Payments to New South Wales for coal loading works were £347,000 below the Budget estimate. Payments to New South Wales for the Blowering Reservoir were £370,000 more than estimated in the Budget. Payments to New South Wales for flood mitigation, and to Tasmania for the Gordon River road, amounted to £200,000 and £135,000, respectively, in 1963-64; the Budget contained no provision for these payments. The payment to the National Welfare Fund waa £4,962,000 greater thai; the Budget estimate. Child Endowment payments were £7,779,000 greater than had been estimated. The cost of new and increased rates of Child Endowment announced in November, i963, and payable as from 14th January, 1964, was about £8,200,000. Tuberculosis Medical Services and Allowances and Widows Pensions were, respectively, £333,000 and £202,000 more than the Budget estimate. Shortfalls as compared with estimated expenditure occurred in respect of Age and Invalid Pensions to the extent of £1,113,000; Pharmaceutical Benefits, £1,282,000; Medical Benefits, £276,000; Medical Services for Pensioners, £234,000; Unemployment and Sickness Benefits, £188,000. Debt charges were £924,000 greater than had been estimated. Other Special Appropriations, excluding expenditure of £18,000,000 on the redemption of Treasury Bilk, were £310,000 less than the Budget estimate. Payments to the Australian Stevedoring Industry Authority were £534,000 more than the Budget estimate; payments of cotton bounty were £253,000 greater than the Budget estimate because of the introduction of a new bounty scheme from 1st January, 1964, and increased bountiable production; payments of subsidy on phosphate fertilizers exceeded the estimate by £2,403,000, reflecting higher than expected usage of these fertilizers. Expenditure under the Cattle and Beef Research Act was £266,000 greater than the estimate. Payments under the Wheat Prices Stabilization Scheme were £283,000 less than the estimate. Payments to the International Development Association and to the Indus Basin Development Fund were £1,361,000 and £2,285,000, respectively, lower than estimated. Departmental expenditure exceeded the Budget estimate by £3,827,000. The major variations were additional expenditure of £1,167,000 on assisted migration, decided upon after the Budget;' £461,000 in respect of election costs; £330,000 for contributions towards the cost of the United Nations Emergency Force in the Middle East and the U.N. Forces in the Congo and Cyprus; and £286,000 in respect of Taxation Branch salaries. Expenditure on War and Repatriation Services was £1,951,000 less than the Budget estimate. Short-falls in estimated expenditure included £887,000 in respect of War and Service pensions and allowances; £661,000 in respect of pharmaceutical services; and £202,000 in respect of medical services. Expenditure by Business Undertakings exceeded the Budget estimate by £2,635,000. Expenditure by the Post Office exceeded the Budget estimate by £2,103,000, mainly because of a higher salary and wage bill resulting from recruitment of additional staff, adjustments arising from arbitration determinations and increased expenditure for overtime. Expenditures by Commonwealth Railways and on broadcasting and television services were £261,000 and £271,000, respectively, more than estimated. Expenditure on Territories exceeded the Budget estimate by £397,000. Expenditure from Consolidated Revenue Fund on Capital Works and Services was £6,404,000 less than the Budget estimate. Payments to Western Australia under the Railway Agreement (Western Australia) Act 1961 and South Australia under the Railway Standardization (South Australia) Agreement Act 1949 were, respectively, £1,737,000 and £217,000. less than the Budget estimates. Expenditure in respect of Civil Aviation was £924,000 less than estimated mainly because of later than had been expected commencements of the Tullamarine and Sydney airport projects. No expenditure was made from a Budget provision of £1,000,000 for additional capital for the Australian Coastal Shipping Commission. Expenditure on civil works and acquisition in the Northern Terr/lory was £793,000 less than estimated. There were short-falls in expenditure of £300,000 on beef cattle roads, and £492,000 in respect of other civil works projects. Expenditure on capital works by the Department of the Interior was £551,000 less than estimated, mainly as a result of underexpenditure on Commonwealth Offices, Melbourne. An amount of £14,875,000 was paid to the Loan Consolidation and Investment Reserve and £18,000,000 was expended on the redemption of Treasury Bills. No provision was made in the Budget for these payments. PART C. - LOAN TRANSACTIONS, 1963-64. Loan Commitments, 1963-64. At its meeting in June, 1963, the Loan Council approved a governmental borrowing programme of which £272,000,000 was for State works and housing purposes in 1963-64. The Commonwealth offered, subject to certain conditions, to make monthly advances to the States for the first eight months of the year on the basis of the programme for works and housing and indicated that it would then review the position. Advances were continued for the balance of the year on the same basis. As State domestic raisings totalled £10,016,000, the amount for State works and housing to be met from Commonwealth borrowings was £261,984,000. An amount of £4,262,000 was required to finance Commonwealth payments to the States for War Service Land Settlement, bringing the total amount required for these purposes to £266,246,000. Redemptions of maturing securities amounting in 1963-64 to £20,238,000 were met from loan proceeds; they comprised redemptions of securities maturing in Australia amounting to £13,148,000 and of securities maturing in London amounting to £7,090,000. Expenditure on Defence Services totalling £38,715,000 was charged to the Loan Fund, of which £35,485,000 was met from loan proceeds. In 1963-64, expenditure by the Snowy Mountains Hydro-electric Authority totalling £11,701,000 was charged to the Loan Fund in accordance with the Loan (International Bank for Reconstruction and Development) Act 1962. The Commonwealth was also called upon to make advances totalling £6,050,000 to Queensland for (be Mount Isa railway project, pursuant to the Railway Agreement (Queensland) Act 1961. The advances were made from Loan Fund by drawing on a borrowing of £20,000,000 made for this purpose in 1959-60. Loan Raisings 1963-64. During 1963-64, the Commonwealth issued four public cash loans in Australia, and three conversion offers to holders of maturing securities. After allowing for discounts in the issue price, total subscriptions to the cash loans, including advance subscriptions received before 1st July, 1963, were £254,054,000. Securities eligible for the three conversion offers amounted to £276,743,000. Of these, £218,211,000 were converted, £57,702,000 were redeemed and £830,000 were outstanding at 30th June, 1964. The issue of Special Bonds - Series I was discontinued in February, 1964, and was followed by the issue of Special Bonds - Series J. Proceeds of sales of Special Bonds during the year were £45,780,000 and redemptions amounted to £8,490,000. Net pro ceeds from Special Bonds during the year were thus £37,290,000. In addition, maturing Commonwealth Bonds and Inscribed Stock totalling £10,858,000 were converted into Special Bonds in 1963-64. The only public cash loan raised overseas during the year was issued in London in October, 1963. It was for an amount of £stg.20,000,000 and yielded proceeds of £24,699,000. Treasury Notes, which were first issued on 16th July, 1962, continued on daily issue throughout 1963-64. The amount of Treasury Notes outstanding reached a peak of £212,061,000 on 31st January, 1964. On 30th June, 1964, the amount outstanding was £76,285,000, an increase of £6,795,000 compared with the amount outstanding at 30th June, 1963. Details of public cash and conversion loans raised by the Commonwealth in Australia and overseas in 1963-64 (other than issues of Treasury Notes) are given in the following table: - The amount of £254,054,000 shown in the table above as the proceeds of the four public cash loans issued in Australia in 1963-64 differs from the actual cash receipts of £243,850,000 available during the year from these loans. The main reasons are that cash receipts in 1963-64 exclude advance subscriptions brought forward from the previous year, but include those received up to 30th June, 1964, in respect of the first cash loan to be issued in 1964-65, and are net of expenses incurred in raising loans. The actual cash receipts in 1963-64 from public loan raisings in Australia amounted to £281,013,000, including net cash proceeds of £37,163,000 from Special Bonds. The cash receipts available from the public loan in London totalling £24,540,000 also differ slightly from the proceeds figure because of net expenses met during the year. Cash receipts in 1963-64 from public loans raised in Australia (including net cash proceeds of Special Bonds) and overseas during the year therefore totalled £305,553,000. After applying £20,238,000 to meet redemptions and £35,485,000 to meet expenditure on Defence Services, there was available £249,830,000 to meet commitments in respect of State works and housing programmes and payments to the States for War Service Land Settlement. As these commitments amounted to £261,984,000 and £4,262,000, respectively, a total of £266,246,000, it was necessary to draw on the balances of the Loan Fund to the extent of £16,416,000. The amounts borrowed by the Commonwealth In 1963-64 and their application are summarized in the following table: - {: type="a" start="a"} 0. Comprises £10,476,000 excess of advance subscriptions, instalments, &c, brought forward in 1963-64 over the amount carried forward into 1964-65, £5,000,000 allocated in 1962-63 for housing advances in 1963-64, £3,489,000 allocated Tor War Service Land Settlement in 1961-62 and 1962-63, and £43,000 allocated in 1962-63 and applied in 1963-64 Tor redemption of matured securities; *less* £1,382,000 allocated in 1963-64 for War Service Land Settlement payments in future years, and £1,210,000 allocated in 1963-64 to meet the cost of Special Bonds presented for redemption in June, 1964. but not charged until July. Drawings on the International Bank loan for the Snowy Mountains Hydro-electric Scheme totalled £12,116,000 in 1963-64. Drawings exceeded expenditure on the Scheme charged to Loan Fund by £415,000 so that there was a corresponding increase in Loan Fund balances on this account. The difference between receipts and expenditures arose from differences in timing between expenditures on the Scheme and drawings against the loan. In March, 1964, the Commonwealth raised a private loan in New York for aircraft financing purposes from Morgan Guaranty Trust Company of New York, the Chase Manhattan Bank, the Irving Trust Company and the Continental Illinois National Bank and Trust Company of Chicago. The loan, which was raised on behalf of Qantas Empire Airways Limited, was for TJ.S.$25,000,000 (£11,161,000) and is to be drawn by 30th September, 1965. During 1963-64, U.S.$5,750,000 (£2,577,000) was received as a result of drawings on this loan and on two loans which had been arranged on behalf of Qantas and Trans-Australia Airlines in 1962-63. These proceeds were made available in their entirely to Qantas and Trans-Australia Airlines. {: .page-start } page 50 {:#debate-56} ### REDEMPTIONS, 1963-64 It was estimated in the Budget for 1963-64 that expenditure on redemptions of securities maturing during the year, on repayments due in respect of loans repayable by instalments, and on market repurchases of securities for cancellation, together The total amount expended by the Sinking penditure on redemptions from both the Loan given in the following table: - with other expenditure by the National Debt Sinking Fund, would cost £90,000,000. The actual cost of these commitments was £92,161,000. Maturing securities with a face value of £276,743,000 were offered for conversion in public loans in Australia during 1963-64 and, of these, £57,702,000 were redeemed. The proceeds of public loans were used to finance £13,105,000 of these redemptions and £419,000 were met out of the proceeds of State domestic raisings. The remaining £44,178,000 were financed from the National Debt Sinking Fund. Other expenditure by the Sinking Fund in Australia, mainly on market purchases, totalled £11,374,000. This included an amount of £515,000 representing a variation in the uninvested balance of the Sinking Fund resulting from investment transactions. A loan of £stg.5,655,00O matured in London in January, 1964, and was redeemed from part of the proceeds of a loan of £stg.20,000,000 issued in London in October, 1963, at a cost of £A.7,090,000. The total amount of redemptions met from the Loan Fund in 1963-64 was £20,238,000, including expenditure of £43,000 to meet the cost of overdue securities. Repayments to the International Bank, met from the Sinking Fund, cost £8,703,000 (U.S.$ 1 9,420,000). Repurchases overseas met from the Sinking Fund cost £7,668,000. Fund in 1963-64 was £71,923,000. Details of exFund and the National Debt Sinking Fund are Current receipts of the National Debt Sinking Fund during 1963-64 were £89,516,000. As expenditure from the Sinking Fund was £71,923,000, there was an excess of receipts over expenditures in the National Debt Sinking Fund of £17,593,000. In addition to the redemptions recorded above, £8,490,000 (face value £8,446,000) of redemptions of Special Bonds were met from the proceeds of Special Bonds subscribed during 1963-64. Inscribed Stock and Bonds on issue on account of the Commonwealth were also reduced by £13,225,000 (face value) at a cost of £13,270,000, through the operations of the Loan Consolidation and Investment Reserve. Medium and long term securities held by the Reserve were exchanged for early maturing securities held elsewhere, which were then cancelled. An amount of £178,000 was paid from the Canadian Loan Trust Account for contractual repurchases of Commonwealth bonds issued in Canada, as a result of which securities with a face value of Canadian $455,000 were repurchased and cancelled. These purchases were additional to those made from the National Debt Sinking Fund recorded above. Changes in Amount of Government Securities on Issue - 30th June, 1963 to 30th June, 1964. *Australia.* The following table summarizes changes during 1963-64 in the amount of Government securities, other than Treasury Bills and Treasury Notes, on issue in Australia: - *Overseas.* The following table summarizes changes during 1963-64 in the amount of Government securities on issue overseas: - STATEMENT No. 2.- SUMMARY OF BUDGET PROSPECTS, 1964-65. Excluding redemptions, total expenditure of the Commonwealth is expected to increase by £191,541,000 to £2,386,067,000 in 1964-65. As total receipts other than loan raisings are estimated to increase by £257,897,000 to £2,254,581,000, it is estimated that the excess of these expenditures over receipts will decrease by £66,356,000 to £131,486,000 in 1964-65. Including redemptions, which are estimated to amount to £125,000,000 in 1964-65, the estimated total call on borrowings - that is, the excess of expenditures over receipts, is £256,486,000. This is £33,517,000 less than the total call on borrowings of £290,003,000 in 1963-64. The main reasons for the estimated increase of £191,541,000 in expenditure (excluding redemptions) in 1964-65 are: - State works and housing programmes for which the Commonwealth will be arranging finance are estimated to increase by £52,685,000 in 1964-65. Of this increase, £9,953,000 represents the cost of implementing the proposals announced during 1963-64 for grants for science laboratories and technical training; It is estimated that total receipts, excluding loan raisings, will amount to £2,254,581,000 or £257,897,000 more than in 1963-64. After allow ing for the effect of revenue proposals referred to in the Budget Speech, receipts of the Consolidated Revenue Fund are estimated to total £2,150,731,000 in 1964-65, which is £246,043,000 greater than in 1963-64. Of this estimated increase, £76,991,000 results from proposed changes in rates of taxation and other charges. A detailed explanation of the bases of the Consolidated Revenue Fund estimates is given in Statement No. 3. In 1963-64, expenditure from the Consolidated Revenue Fund, excluding the payment to the Loan Consolidation and Investment Reserve and expenditure on the redemption of Treasury Bills, was £1,871,814,000. In addition, £38,715,000 of expenditure on Defence Services and £11,701,000 of expenditure on the Snowy Mountains Hydroelectric Scheme was met from the Loan Fund, so that total expenditure ordinarily met from the Consolidated Revenue Fund was £1,922.230,000. The comparable figure for 1964-65 is estimated at £2,096,259,000. It is proposed to charge £10,750,000 of expenditure on the Snowy Mountains Hydro-electric Scheme to the Loan Fund in 1964-65, so that expenditure charged to the Consolidated Revenue Fund is estimated to total £2,085,509,000 excluding the payment to the Loan Consolidation and Investment Reserve. The Consolidated Revenue Fund is expected to be balanced after the payment of £65,222,000 to the Loan Consolidation and Investment Reserve, whence this amount will be available to assist in financing State works and housing programmes, should there be, as is expected, a short-fall in loan raisings, and in meeting redemptions. At ils July 1964 meeting, the Loan Council agreed lo a borrowing programme of which £290,000,000 is for State works and housing in 1964-65. As State domestic raisings arc expected to amount to £7,000,000 in 1964-65, it is estimated that the amount to be met on this account from Commonwealth loan raisings will be £283,000,000. In 1963-64, State works and housing programmes amounted to £272,000,000 and State domestic raisings to £10,016,000, so that the amount mct from Commonwealth loan raisings was £261,984,000. Loan moneys will again bc required in 1964-65 to finance payments to the States for War Service Land Settlement which are estimated al £4,500,000 compared wilh £4,262,000 in 1963-64. Advances to Queensland for the Mount lsa railway project are estimated to amount to £2,308,000 in 1964-65 compared with £6,050,000 in 1963-64. lt is estimated that expenditure on the Snowy Mountains Hydro-electric Scheme charged to the Loan Fund will amount to £10,750,000 in 1964-65; the amount charged to the Loan Fund in 1963-64 was £11,701,000. To finance this expenditure, it is estimated that drawings totalling £10,615,000 will be made on the International Bank loan for the Snowy Mountains Hydro-electric Scheme. Redemptions, which include redemptions of matured securities, repayments of loans from the International Bank, market repurchases, &c, are expected to total £125,000,000 in 1964-65. The income of the National Debt Sinking Fund is estimated to be £95,000,000, which would fall short of estimated redemptions by £30,000,000. In 1963-64, redemptions, repurchases, &c, amounted to £92,161,000, of which £71,923,000 was met from the National Debt Sinking Fund, and £20,238,000 was met from loan proceeds. The income of the National Debt Sinking Fund totalled £89,516,000 in 1963-64. In 1963-64, there was an increase of £2,480,000 in other Trust Fund balances. It is estimated that there will be an increase of £8,850,000 in these balances in 1964-65. The foregoing figures are brought together in the table below, which compares the prospective Budget result for 1964-65 with the actual result for 1963-64. {: .page-start } page 55 {:#debate-57} ### NOTES ON REVENUE ESTIMATES The estimates of revenue for 1964-65 shown in the foregoing table includes the effect of the various revenue proposals announced in the Budget Speech. The effect of those proposals on the revenue estimates is shown in the following table: - Details of these revenue proposals, together with estimates of their effect on revenue in 1964-65 and in a full year, are as follows: - It is estimated that, if there were no changes in the existing legislation, total revenue in 1964-65 would be £2,073,740,000 or £169,052,000 more than in 1963-64. Taking into account the net effect of the proposed changes announced in the Budget Speech, total revenue in 1964-65 is estimated at £2,150,731,000 or £246,043,000 more than in 1963-64. The revenue estimates are based, in part, on estimates of the level of taxable incomes derived in 1963-64 by all classes of companies and by individuals engaged in business and professional activities, primary production, property owning, &c. They are also, in part, based on an assessment of prospective changes in the main economic aggregates in 1964-65. In 1964-65, it is expected that the increase in total wages and salaries will be greater than in 1963-64. Although the growth in employment during 1964-65 is expected to be slower than during 1963-64, the increase in the average level of employment in 1964-65 is expected to be much the same as in 1963-64. Because of the rise in the Commonwealth basic wage, and increased demand for labour, average earnings per employee are expected to increase by more than in 1963-64. Together, these two elements should lead to a rise in wages and salaries which will result in a greater increase in collections of " pay-as-you-earn " instalment deductions and Pay-roll Tax than in 1963-64. The higher wages and salaries and other incomes, combined with the expectation of a continued strong upward trend in economic conditions generally, are expected to result in increased collections from indirect taxes - namely Sales Tax, Excise Duty and Customs Duty. Expenditure on goods subject to Sales Tax has been assumed to increase at a greater rate than in 1963-64, except for motor vehicles where the rate of growth in sales may slacken. It has been assumed that expenditure on goods subject to Excise Duty will increase as rapidly as in 1963-64. Imports, and hence collections of Customs Duty, have been assumed to increase at a faster rate than in 1963-64. Company incomes subject to tax are estimated to have increased substantially in 1963-64, but the increase is expected to have been smaller than in 1962-63, when, overall, incomes rose sharply after having fallen the year before. Incomes of individuals subject to a provisional tax are considered to have increased in 1963-64 at about the same rate as in 1962-63. However, the amount of tax payable in 1964-65 by these taxpayers is estimated to increase by considerably less than in 1963- 64, mainly because of a large increase in the amount of provisional tax payable in 1963-64 which will be credited against tax assessed in 1964- 65. The provisional tax credited against tax assessed in 1963-64 was relatively low because the amounts concerned were calculated by reference to taxable incomes derived in 1961-62 - a year of relatively low incomes. Brief explanations of the estimates for particular items fallow: - {:#subdebate-57-0} #### Item No. 1.- Customs Duty On the basis of existing legislation, Customs collections are estimated to increase by £16,573,000 in 1964-65 to a total of £133,000,000. Imports are expected to increase in 1964-65 at a faster rate than in 1963-64. The proportion of imports subject to higher rates of duty is expected to increase slightly in 1964-65. After allowing for the effect of the proposed changes announced in the Budget Speech, Customs collections are estimated to amount to £133,500,000 in 1964-65, which is £17,073,000 more than in 1963-64. {:#subdebate-57-1} #### Item No. 2. - Excise Duty On the basis of existing legislation, Excise col- . lections in 1964-65 are estimated to total £307,700,000 compared with £291,086,000 in 1963-64. The estimated increase of £16,614,000 is based on the expectation that the increases in clearances of the major products subject to Excise Duty will be similar to those which occurred in 1963-64. After the effect of the proposed changes announced in the Budget Speech is allowed for, Excise collections are estimated to amount to £318,000,000 in 1964-65, which is £26,914,000 more than in 1963-64. Item No. 3. - Sales Tax. On the basis of existing legislation, it is estimated that Sales Tax collections in 1964-65 would total £173,000,000, an increase of £10,447,000 over collections in 1963-64. Sales of passenger motor vehicles are expected to increase less rapidly in 1964-65 than in 1963-64. Sales of most other taxable goods are expected to increase in 1964-65 at a faster rale than in 1963-64. After allowing for the effect of the proposed changes announced in iiic Budget Speech, Sales Tax collections are estimated to amount to £178,000,000 in 1964-65, which is £15,447,000 more than in 1963-64. Item No. 4. - Income Tax. lt is estimated thai, on the basis of existing legislation, collections of Income Tax from individuals in 1964-65 would be £715,000,000 or £78,856,000 greater than collections in 1963-64. lt is estimated thai in 1964-65 net " pay-as-you-earn " collections would, as a result of expected increases in wages and employment, exceed those of: 1963-64 by £60,900,000. As regards taxpayers subject to provisional tax, it is estimated that a Further substantial increase occurred in 1963-64 in (heir taxable incomes; these incomes will bc assessed to tax in 1964-65. As a result, a sign iIi:ant increase is expected in collections from this source in 1964-65. The estimated increase over 1963-64 would be Greater but for the large increase in provisional credit (the provisional tax payable in 1963-64 for application against tax assessed on 1963-64 incomes) and the expectation that the reduction in provisional tax by way of self-assessment will bc greater in 1964-65 than in 1963-64. Including the effect of the proposed changes announced in the Budget Speech, the estimated amount of collections of Income Tax from individuals in 1964-65 is £745,600,000 or £109,456,000 more than in 1963-64. lt is estimated thai, on the basis of existing legisation, Income Tax collections from companies in 1964-65 would amount to £326,000,000, which is £32,870,000 greater than in 1963-64. Company incomes in 1963-64 are estimated to have increased at a slightly lower rate than in 1962-63. Including the effect of the proposed changes announced in the Budget Speech, collections of Income Tax from companies are estimated to be £346,000,000 in 1964-65, or £52,870,000 more than in 1963-64. Dividend (Withholding) Tax is expected to yield £8,000,000 in 1964-65, or approximately the same as in 1963-64. lt is estimated that dividends payable overseas in 1964-65 will be at much the tame level as in 1963-64. It is estimated thai, on the basis of existing legislation, total Income Tax collections would be £1,049,000,000 or £111,758,000 more than in 1963-64. The effect of the proposed changes announced in the Budget Speech included, the estimated amount of collections in 1964-65 is £1,099,600,000 or £162,358,000 more than in 1963-64. Item No. 5- Pay-roll Tax. Gross Pay-roll Tax collections are estimated to increase by £7,600,000 in 1964-65 because of the higher levels of employment and wage and salary p» ments expected. With an allowance for estimated rebates payable in 1964-65 to exporters under the export incentive scheme, net collections of Pay-roll Tax in 1964-65 are estimated to be £75,000,000, or £6,778,000 more than in 1963-64. Items No. 6 and No. 7. - Estate and Gift Duties. Collections of Estate Duty and Gift Duty in 1964-65 arc estimated lo be £18,000,000 and £3,500,000, respectively, compared wilh actual collections of £19,936,000 and £3,244,000 in 1963- 64. Collections of Estate Duty in 1964-65 will reflect the full-year effect of concessions granted in the 1963-64 Budget. Item No. 8. - Business Undertakings. The estimated increase of £188,000 in the operating revenue of the Commonwealth Railways allows for a small expansion in traffic volume in 1964- 65. On the basis of existing legislation, Post Office receipts are estimated to increase by £11,568,000 to a total of £177,000,000 in 1964-65 as a result of the expected growth in postal, telephone and telegraph traffic. The effect of the proposed tariff changes included, Post Office receipts are estimated to amount to £185,500,000 in 1964-65 or £20,068,000 more than in 1963-64. On the basis of existing legislation, it is estimated that Broadcasting and Television revenue would total £15,330,000 in 1964-65, an increase of £703,000 compared with 1963-64. When allowance is made for the effect of the proposed changes, including the increase in the Television Viewers' Licence Fee associated with the removal of Duty on Cathode Kay Tubes, the estimated revenue from Broadcasting and Television Services in 1964-65 is £17,357,000 or £2,730,000 more than in 1963-64. Item No. 9. - Territories. Territories revenue is estimated to increase by £926,000 in 1964-65. Of the increased estimated revenue of £792,000 in the Australian Capital Territory, £167,000 is in respect of rentals of Government dwellings, £460,000 is in respect of sales of Government houses and repayment of housing loans, and £60,000 is in respect of premiums on lease sales. Revenue in the Northern Territory is estimated to increase by £135,000. The main factors responsible for variations between estimated revenue in 1964-65 and actual revenue in 1963-64 are: - Civil Aviation. - It is estimated that revenue will be £748,000 less than in 1963-64. Receipts in 1963-64 included a non-recurring amount of £1,006,000 from the sale of shares in Tasman Empire Airways Limited. In 1964-65, it is estimated that revenue from air navigation charges will increase by £246,000; of this increase £64,000 is attributable to the proposal to increase the rate of charges. Housing. - Revenue is estimated to be £873,000 greater than in 1963-64 largely as a result of increased interest on advances outstanding under the War Service Homes Scheme. Immigration. - The estimated increase in revenue is mainly attributable to the accounting change refered to in the footnote to the table "Other Revenue ". Interior.- Revenue is estimated to be £904,000 lower than in 1963-64 mainly because of an expected decline of £762,000 in receipts from sales of property and material. National Development. - Revenue is estimated to increase by £353,000 in 1964-65 mainly because of increased interest on Commonwealth advances to the Snowy Mountains Hydro-electric Authority. Primary Industry. - Revenue is estimated to increase by £5,525,000 in 1964-65. Receipts in respect of War Service Land Settlement are estimated to be £143,000 lower than in 1963-64. The proceeds of levies and charges imposed on various primary industries, which are paid to commodity boards or Trust Accounts, are estimated to increase by £5,694,000 in 1964-65. The increase is mainly due to the estimated additional return of £4,720,000 from the tax imposed for wool promotion purposes; £800,000 from the charges imposed for the purposes of dried vine fruits stabilization scheme; and £198,000 from the levies imposed on the meat industry under the Livestock Slaughter Levy Act 1964. Repatriation. - Revenue is estimated to be £209,000 less than in 1963-64 mainly because of an expected decline in recepits of maintenance moneys held on trust on behalf of certain categories of deceased mentally ill ex-servicemen. Shipping and Transport. - Revenue is estimated to be £241,000 less than in 1963-64. Receipts from the sale of ships in 1964-65 are expected to be £384,000 lower than in 1963-64. Territories. - Revenue is estimated to increase by £236.000 in 1964-65. The estimated increase mainly arises from an expected payment into Consolidated Revenue of £140,000 unrequired Trust Account balances which had no counterpart in 1963-64: repayments in respect of the Christmas Island Agreement 1958 are estimated to increase by £52,000. Treasury. - It is estimated that revenue will be £373,000 lower than in 1963-64. Under the Reserve Bank Act 1959, the profits of the Note Issue Department of the Reserve Bank of Australia and such proportion as the Treasurer determines of the profits of the Reserve Bank from central banking business are payable to Consolidated Revenue. Payments in respect of these profits are expected to be £1,333,000 more than in 1963-64. Interest on investments of the General Trust Fund is estimated to decrease by £1,139,000, mainly because of a change in investments to lower yielding stock. Unrequired balances of Trust Accounts are estimated to be £1,111,000 lower in 1964-65; *iti* 1963-64 an amount of £958,000 was received from unrequired Trust Fund balances of the Government Printer, but there will be no comparable payment in 1964-65. Interest payments to Consolidated Revenue are estimated to increase by £553,000 in 1964-65, mainly because of an increase of £286,000 in interest payments under the Queensland Railway Agreement. Army. - The estimated decrease in revenue of £8,655,000 arises mainly from the fact that there will be no receipts in 1964-65 from the Korean Operations Pool Trust Account; in 1963-64, an amount of £8,102,000 was received as a result of the winding-up of the Account. Air. - The estimated decrease in revenue of £319,000 mainly reflects a reduction in repayments in respect of expenditure of earlier years. Supply. - Revenue in 1964-65 is estimated to be £331,000 lower than in 1963-64. Repayments by the United Kingdom Government in respect of its share of the costs of the Joint Weapons Project are estimated to be £232,000 greater than in 1963-64. Payments or unrequired balances of Trust Accounts are estimated to decline by £226,000, and receipts from surplus disposals sales are expected to bc £200,000 lower. Of the estimated total increase of £36,342,000 in expenditure on Defence Services, £15,900,000 is attributable to the planned increases in military capability and preparedness which were announced in May, 1963. Increases in the pay of the forces and in the salaries of civilian staff, arising from the recent pay code review and basic wage adjustment, require an additional provision of £11,607,000 including £4,221,000 in respect of the basic wage increase. The accelerated housing programme for members of the forces is estimated to cost an additional £5,128,000 and Defence Aid for Malaysia will increase by £1,995,000. The main factors contributing to variations between estimated expenditure in 1964-65 and actual expenditure in 1963-64 are: - Defence. - Expenditure is estimated lo increase by £2,623,000 in 1964-65 mainly as a result of an estimated increase of £1,995,000 in Defence Aid for Malaysia. Expenditure on recruiting is estimated to increase by £122,000. Navy. - li is estimated that expenditure of the Department of the Navy will increase by £13,661,000 in 1964-65. Expenditure on the purchase and construction of ships is estimated to increase by £8,103,000; on general stores by £717,000; and on housing by £526,000. An additional provision of £2,656,000 has been made for pay code and basic wage increases for R.A.N, personnel and basic wage increases for civilian staff. Army. - Of the estimated increase in expenditure of £15,151,000 in 1964-65, £4,001,000 is in respect of expenditure related to arms and equipment, and £796,000 in respect of expenditure on general services. Expenditure on new buildings and works is expected to increase by £1,129,000 whilst an additional amount of £1,493,000 has been provided for the housing programme. Provision of £5,183,000 has been made to meet pay code and basic wage increases for members of the A.M.F. and basic wage increases for civilian staff. Air. - Expenditure of the Department of Air is estimated to increase by £840,000 in 1964-65. Provision has been made for increased expenditure on equipment and stores, £2,931,000, and general services, £276,000. Expenditure on buildings and works is estimated to rise by £476,000, and £2,916,000 has been provided for additional housing. An amount of £3,033,000 is required to meet pay code and basic wage increases for members of the R.A.A.F. and basic wage increases for civilian staff. Payments for aircraft purchase and manufacture are estimated to decrease by £10,397,000. No payments will be made in 1964-65 in respect of the purchase of FI IIA aircraft; in 1963-64, an initial progress payment of £8,968,000 was made for this purpose. Supply. - Expenditure is estimated to increase by £3,751,000 in 1964-65. Net transactions on behalf of Other Administrations in 1963-64 resulted in a credit of £1,959,000; in 1964-65 it is estimated that there will be a credit of £50,000. Provision has been made for expenditure amounting to £750,000 in respect of furniture removals and storage for other Commonwealth Departments which was previously met by those Departments. Basic wage and other pay increases are estimated to require an additional £695,000. Aid to India. - This provision is estimated to be £594,000 less than in 1963-64, reflecting the completion of the programme of assistance announced in March, 1963. Government Contributions to D.F.R.B.- The increase of £655,000 reflects the increasing numbers to whom benefits are payable and the full year effect of the increases in the rate of contribution announced in the 1963-64 Budget. Exmouth Township.- The provision of £190,000 represents the Commonwealth contribution to the Western Australian Government for the development of a township at Exmouth in connexion with the establishment of the United States Communications Base at North West Cape. The above table lists payments to or for the States from Special Appropriations of the Consolidated Revenue Fund. Details of these and other payments to or for the States are *'given in* the White Paper entitled "Commonwealth Payments to or for the States, 1964-65 ", issued as part of the information provided to the Parliament in connexion with the Budget. Brief notes on tha items in the above table are given below. Financial Assistance Grants. - Under the provisions of the States Grants Acts 1959 and 1962, the financial assistance grant payable to each State in 1964-65 is to be determined by adjusting the grant paid to that State in 1963-64 in accordance with a formula based on estimated movements in the population of that State between 1st July, J963, and 1st July, 1964, and the percentage increase (adjusted by a " betterment " factor of one-tenth) in the level of average wages fur Australia as a whole between 1962-63 and 1963-64. Preliminary estimates made by the Commonwealth Statistician indicate that the financial assistance grants payable to the States in 1964-65 will total £340,604,000, or £22,620,000 more than the grants paid in 1963-64. The final determination of the grams payable to each State will be made by the Statistician as the necessary data become available later in the year and, in any case, as required by the legislation, not later than 3 1st December, 1964. Special Grants. - The Commonwealth Grants Commission has recommended special grants for the claimant States in 1964-65 totalling £15,860,000, compared with £11,450,000 in 1963-64. Of the total amount recommended for payment in 1964-65, the Commission has recommended that Western Australia be paid £8,560,000 compared *wilh* £6,072.000 in 1963-64, and Tasmania £7,300,000 compared wilh £5,378,000 in 1963-64. Additional Assistance Grants. - At the Loan Council Meeting and Premiers' Conference in June, 1963, the Commonwealth offered to make available to the States in 1963-64 a non-repayable additional assistance grant of £20,000,000 to be expended by the States, at their discretion, on employment-giving activities. No similar payment is being made to the Slates in 1964-65. Payments under the Financial Agreement. - The Financial Agreement provides that the Commonwealth will in each year, during the period of 58 years commencing 1st July, 1927, contribute a fixed amount of £7,585,000 towards the interest payable on Stale debts existing at 30th June, 1927. The Sinking Fund contributions made by the Commonwealth in respect of State debts existing at 30th June, 1927, and in respect of State debts incurred since that date, vary according to the nature and extent of borrowings by the States and are paid direct to the National Debt Sinking Fund. The estimated increase of £458,000 in these contributions in 1964-65 reflects the growth in State debt. Commonwealth Aid Roads Grants. - The Commonwealth Aid Roads Act 1964 provides for the payment of a total amount of £65,000,000 to the States in 1964-65 for roads purposes, £62,000,000 as basic grant and £3,000,000 as additional grant. In 1963-64, the last year of operation of the Commonwealth Aid Roads Act 1959, roads grants paid to the States totalled £58,000,000 of which £48,000,000 represented basic grant and £10,000,000 additional grant. Financial Assistance for Universities. - The Universities (Financial Assistance) Act 1963, which was enacted following the presentation by the Australian Universities Commission of its second report in August, 1963, provides for financial assistance to the States for universities of £58,400,000 over the three calendar years 1964, 1965 and 1966. As a result of this and earlier legislation, payments to the States for universities are expected to increase from £16,930,000 in 1963-64 to £19,000,000 in 1964-65. Mental Health Institutions - Contributions to Capital Expenditure. - The States Grants (Mental Health Institutions) Act 1964 provides for Commonwealth grants to the States over a period of three years, amounting to one-third of the total expenditure incurred by them with the Commonwealth's approval, in building and equipping mental health institutions. Expenditure by the Commonwealth in 1964-65 is estimated at £1,770,000 compared with expenditure of £797,000 in 1963-64 under the previous legislation. Replacement of Derby Jetty - Western Australia. --Under the Derby Jetty Agreement Act 1962, the Commonwealth is providing financial assistance to Western Australia of up to £800,000 for construction of a new jetty at Derby in the West Kimberley region. Half of the assistance is by way of grant and the other half is repayable with interest over 15 years. In 1963-64, payments to the Slate amounted to £350,000, bringing total payments by the Commonwealth to £650,000. In 1964-65, provision has been made for the payment of £150,000, representing the balance of the total amount payable. Western Australia Northern Development. - The Western Australia (Northern Development) Agreement Act 1963 provides for financial assistance to Western Australia of £3,500,000 for development of approved projects during the three years, 1963-64 to 1965-66. In 1963-64, an amount of £1,083,000 was provided under this agreement, comprising £733,000 for the Ord River Project and £350,000 (of which £175,000 is repayable with interest) for the Broome jetty works. It is estimated that in 1964-65 £734,000 will be made available in respect of the Ord River Project and £550,000 for the Broome jetty works, making total estimated payments and advances of £1,284,000 for 1964-65. Cattle Roads- Queensland. - Under the Queensland Beef Cattle Roads Agreement Act 1962, the Commonwealth is to provide financial assistance of up to £8,300,000 to Queensland for the construction and bitumen sealing of certain roads for the transport of beef cattle. One half of the expenditure by the Commonwealth in excess of £1,700,000 is repayable by the State and the remainder takes the form of a grant. In 1963-64, payments amounting to £2,047,000 (of which £999,000 is repayable) were made to the State, bringing total Commonwealth contributions to £3,697,000. It is estimated that £2,710,000 will be required for expenditure by the State in 1964-65, comprising £1,355,000 grant and £1,355,000 which *is* repayable with interest. Brigalow Lands Development - Queensland. - The Brigalow Lands Agreement Act 1962 provides for financial assistance to Queensland of up to £7,250,000 for the development of approximately 4,271,000 acres of brigalow land in the Fitzroy River Basin. The assistance is being made available by way of interest-bearing advances to cover expenditure by the State on certain specified works during the period of five years ending 30th June, 1967. Repayments are to commence in 1968. Advances amounting to £800,000 were made in 1963-64 and provision has been made for advances totalling £1,135,000 in 1964-65. Cattle Roads- Western Australia.- The Western Australia Grant (Beef Cattle Roads) Act 1962 authorizes grants to Western Australia of amounts not exceeding £700,000 in 1962-63 and £750,000 in each of the three succeeding years, for expenditure on the construction and improvement of beef cattle roads in the northern part of the State. The State received £750.000 in 1963-64 and provision is made for the payment of the same amount in 1964-65. Coal Loading Works - New South Wales. - Under the Coal Loading Works Agreement (New South Wales) Act 1961, the Commonwealth is providing financial assistance to New South Wales of up to £2,650,000, partly by way of repayable advances from the Consolidated Revenue Fund and partly by grants from the Coal Industry Fund of the Joint Coal Board, for improvements to coal loading facilities at Newcastle, Port Kembla and Balmain. To 30th June, 1964, repayable advances had amounted to £840,000 and grants to £474,000. In 1964-65, it is estimated that repayable advances will be £498,000 and grants £337,000. Coal Loading Works - Queensland. - Under the Coal Loading Works Agreement (Queensland) Act 1962, the Commonwealth has entered into an agreement with the Queensland Government to provide financial assistance of up to a total amount of £200,000 to expedite improvements to coal loading facilities at Gladstone. Assistance is to be by way of a repayable long term advance of up to £100,000 and a grant of up to £100,000. Payments to the State in 1963-64 amounted to £80,000 and a final payment of £120,000 is expected in 1964-65. Chowilla Reservoir - New South Wales. - Under the Chowilla Reservoir Agreement Act 1963, the Commonwealth has undertaken to provide a loan to New South Wales to finance the State's onequarter contribution to the cost of construction of the proposed Chowilla Reservoir, which is to be constructed as an approved work under the River Murray Waters Agreement. Payments to the State in 1963-64 amounted to £50,000 and it is estimated that advances in 1964-65 will be £112,000. The Commonwealth contribution to the River Murray Commission in respect of its quarter-share under the Agreement of the cost of construction of the Chowilla Reservoir is included in the expenditure estimates of the Department of National Development, shown in the table for Item No. 20- Capita] Works and Services. Blowering Reservoir - New South Wales. - Under the Blowering Water Storage Works Agreement Act 1963, arrangements have been made between the Commonwealth and New South Wales Governments for construction of the Blowering Reservoir. The bulk of the work involved will be undertaken by the Snowy Mountains Hydro-electric Authority as the agent for, and at the expense of, the State of New South Wales. The Commonwealth will, however, finance one half of the cost in the form of repayable interest-bearing loans to New South Wales. Commonwealth payments to New South Wales in 1963- 64 were £420,000 and are estimated to amount to £1,720,000 in 1964-65. Flood Mitigation - New South Wales. - Under the New South Wales Grant (Flood Mitigation) Act 1964, the Commonwealth is to provide financial assistance of up to £2,750,000 to carry out flood mitigation works on the Macleay, Clarence, Richmond, Tweed, Shoalhaven and Hunter Rivers. The Commonwealth payments will match expenditure by the State, which in turn will be in a prescribed ratio to local authority expenditure on flood mitigation works. Payments by the Commonwealth amounted to £200,000 in 1963-64 and it is estimated that £600,000 will bc paid in 1964- 65. Gordon River Road - Tasmania. - The Tasmania Grant (Gordon River Road) Act 1964 authorizes the Commonwealth to grant financial assistance of up to £2,500,000 to Tasmania for the construction of a developmental road into the Gordon River region of Tasmania, primarily for the purpose of enabling detailed investigations to be made of a further stage of the Tasmanian hydroelectric system. In 1963-64, £135,000 was paid under the agreement and £750,000 has been provided for payments in 1964-65. Water Resources Investigations. - The Commonwealth has offered to provide financial assistance to the States for an accelerated programme of investigation of underground water resources, which in 1964-65 is expected to require payment by the Commonwealth of £200,000. In addition, the Commonwealth has undertaken to provide financial assistance to the States for an accelerated programme of stream gauging, which is expected to require £202,000 in 1964-65. Science Laboratories and Technical Training. - The States Grants (Science Laboratories and Technical Training) Act 1964 provides for the payment to the States in 1964-65 of £4,953,000 for buildings and equipment facilities for science teaching in secondary schools, and a further £5,000,000 for building and equipment costs of technical schools. Other Payments. - A number of items of expenditure previously included as Departmental expenditure has now been grouped under Payments to or for the States. The largest of them are £337,000 for dairy industry extension services, £264,000 for expansion of agricultural advisory services, £210,000 assistance to Australian Red Cross blood transfusion service, and £207,000 for cattle tick control and research in New South Wales. Further details of these payments are given in the White Paper on " Commonwealth Payments to or for the Slates, 1964-65 ". {:#subdebate-57-2} #### Item No. 13. - Payment to National Welfare Fund The National Welfare Fund Act 1952 provides that the payment from Consolidated Revenue to the National Welfare Fund each year should be equal to the actual expenditure from the Fund in that year. Expenditure from the Fund was £416,348,000 in 1963-64 and, after taking into account of the cost of the Budget proposals, is estimated at £452,153,000 in 1964-65. Detailed explanations of the estimated increase of £35,805,000 in expenditure from the Fund in 1964-65 are given in Statement No. 4 - National Welfare Fund Estimates, 1964-65. The main factors responsible for variations between estimated expenditure in 1964-65 and actual expenditure in 1963-64 are: - Sinking Fund. - The estimated increase of £2,485,000 in contributions to the National Debt Sinking Fund in 1964-65 reflects the norma] rate of accumulation in these contributions. Interest. - The estimated increase of £154,000 in interest payments on debt repayable overseas in 1964-65 is the result of increased interest payments of £731,000 on drawings on the International Bank loan for the Snowy Mountains Hydroelectric Scheme, and of £52,000 in respect of loans raised in the United Kingdom. Cancellation of debt through the operations of the National Debt Sinking Fund is estimated to result in a reduction in interest payments of £629,000 during 1964-65. The estimated increase of £735,000 in interest payments on debt repayable in Australia is due mainly to the conversion of Commonwealth debt into stock bearing higher rates of interest. Loan Redemption and Conversion Expenses. - Loan redemption and conversion expenses are estimated to be £70,000, lower in 1964-65, because the amount of debt maturing in Australia in respect of which the Commonwealth will be responsible for conversion expenses is lower than in 1963-64. Customs and Excise. - Total expenditure is estimated to increase by £3,070,000 in 1964-65. Payments under the Phosphate Fertilizers Bounty Act 1963 are estimated to increase by £1,847,000 in 1964-65 because of the operation of the Act for a full year and because of increased usage of superphosphate. The Raw Cotton Bounty Act 1963 provides for bounty payments on cotton produced during the five year period commencing 1st January, 1964. Cotton bounty payments are estimated to increase by £627,000 in 1964-65 because of increased bountiable production. Payments under the Vinyl Resin Bounty Act 1963 are estimated to increase by £608,000 mainly because 1964-65 will be the first full year of operation of the scheme. External Affairs. - The estimated increase of £1,000,000 is due to an expected increase in disbursements by the Indus Basin Development Fund. Primary Industry. - Expenditure is estimated to decrease by £145,000 in 1964-65. Payments for wool promotion under the Wool Industry Act 1963-64 are estimated to increase by £9,307,000 in 1964-65. For a period of three years commencing 1st July, 1964, the Commonwealth will match on a £ for £ basis funds contributed by woolgrowers in excess of 10s. per bale for wool promotion; the Commonwealth's contribution is estimated at £4,600,000 in 1964-65. The remainder of the increase reflects the payment in respect of the estimated increase in collections of wool tax from growers for promotion. It is estimated that the payment in respect of collections by the Commonwealth from growers to stabilization funds established under the Dried Vine Fruits Stabilization Act 1964 will be £800,000; no previous payments have been made under the Act. Payments under the Meat Industry Act 1964 are estimated to be £208,000 more than the corresponding payments in 1963-64 because of added levies on producers. Payments under the Canned Fruits Export Marketing Act 1963 are expected to increase by £441,000 as a result of the operation of that Act for a full year. Payments by the Commonwealth under the Wheat Industry Stabilization Scheme are estimated at £500,000 in 1964-65 compared with £11,317,000 in 1963-64, reflecting the lower guaranteed return to growers for the 1963-64 crop and an improvement in export prices. Treasury. - It is estimated that total expenditure in 1964-65 will be £20,824,000 compared with expenditure (excluding expenditure of £18,000,000 on redemption of Treasury Bills) of £18,888,000 In 1963-64. Payments in respect of the proposal to stabilize petrol prices in rural areas are estimated at £3,000,000 in 1964-65; there were no payments for this purpose in 1963-64. No provision has been made for a payment to the International Bank; in 1963-64, an amount of £2,672,000, representing the last instalment of Australia's " 18 per cent." subscription, was paid to the International Bank. No provision has been made to increase the capital of the Commonwealth Development Bank in 1964-65; an amount of £5,000,000 was provided for this purpose in 1963-64. It is estimated that payments of £1,453,000 will be made to the International Development Association, or £90,000 more than in 1963-64; the estimate allows for a payment of £113,000, representing the cash portion of Australia's last annual instalment of its initial subscription, and the cashing by the Association of £1,340,000 of demand securities lodged in its name. Commonwealth contributions to the Public Service Superannuation Fund are estimated to increase by £1,091,000, partly reflecting the full year effect of variations in rates of contribution effective from October, 1963. It is estimated that an amount of £5,583,000 will be provided under the Currency Act 1963, mainly for expenditure on machine conversion preparatory to the introduction of demical currency; there was no comparable payment in 1963-64. Departmental Expenditure comprises the annual running costs of Civil Departments (excluding Business Undertakings, Defence Departments and expenditure in the Territories) and those other items which arise in connexion with a Department's responsibilities. The composition of the total Departmental Expenditure set out above is as follows: - Of the estimated increase in Departmental expenditure of £16,675,000 in 1964-65, £214,000 arises from the accounting changes referred to in the footnotes to the table setting out Departmental Expenditure. Increases in wage and salary payments resulting from recent wage determinations are estimated to account for £2,524,000 of the increase. Some of the more important factors responsible for variations between estimated expenditure in 1964-65 and actual expenditure in 1963-64 are:- Attorney-General's.- Total expenditure is estimated to increase by £324,000. Running costs are estimated to rise by £249,000 reflecting additional staff and salary costs. Expenditure on other services is estimated to increase by £75,000 mainly on account of costs in respect of the Australian Police Unit in Cyprus. Civil Aviation. - Of the estimated increase in expenditure of £1,364,000 in 1964-65, £1,249,000 is for running costs and comprises £286,000 for administrative salaries and expenses and £963,000 for operation and maintenance of aviation facilities. Expenditure on other services is expected to rise by £115,000, mainly as a result of increases in aerodromes developmental grants and research expenditure. C.S.I.R.O.- Expenditure is estimated to increase by £1,396,000 in 1964-65. Running costs are estimated to increase by £1,327,000, of which £620,000 is for increased salary and wage costs resulting from recent wage determinations and £707,000 for other running costs. An increase of £69,000 is estimated in expenditure on other services. Customs and Excise. - The estimated increase in expenditure of £579,000 in 1964-65 mainly reflects increased staff and salary payments. External Affairs. - Of the estimated increase in expenditure of £641,000, running costs are estimated to increase by £643,000 and expenditure on other services is estimated to decrease by £2,000. The estimated increase in running costs is due mainly to staff and salary increases. Decreased expenditure on other services reflects the fact that payments of £414,000 were made in respect of the United Nations Force in the Congo in 1963-64 and that there will be no comparable payment in 1964-65; also, it is estimated that there will be decreases of £125,000 in contributions to the United Nations Special Fund and £101,000 in contributions to the United Nations Force in the Middle East as compared with 1963-64. It is estimated that there will be an increase in expenditure of £164,000 in respect of the Colombo Plan Economic Development Programme, £154,000 in respect of the Colombo Plan Technical Assistance Programme, and £305,000 in respect of the World Food Programme. Health. - The estimated increase in expenditure of £362,000 in 1964-65 is a net result of an expected increase in running costs of £614,000 and a decrease in expenditure of £252,000 on other services. Of the decrease in expenditure, £424,000 arises from an accounting change referred to in a footnote to the table on Departmental Expenditure. Housing. - Total expenditure is estimated to increase by £293,000 in 1964-65, mainly because of an estimated increase in running costs to meet the full year cost of the Department of Housing, which was established during 1963-64. Immigration. - The estimated increase in expenditure of £1,912,000 in 1964-65 comprises £191,000 for increased running costs and £1,721,000 for increased expenditure on other services. Expenditure on Assisted Migration is expected to increase by £1,519,000, of which £638,000 arises from an accounting change referred to in a footnote to the table on Departmental Expenditure. Interior. - The estimated increase in expenditure of £1,245,000 in 1964-65 reflects increased running costs, including £261,000 for office accommodation and services, £243,000 for the Bureau of Meteorology, and £140,000 for the Electoral Branch. Of the increase in expenditure £539,000 arises from an accounting change referred to in a footnote to the table on Departmental Expenditure. Labour and National Service. - The estimated increase of £270,000 comprises increases of £202,000 for running costs and £68,000 for expenditure on other services. National Development. - Expenditure is estimated to increase by £1,204,000 in 1964-65, of which £584,000 relates to increases in running costs and £620,000 to an estimated increase in expenditure on other services. The estimated increase in running costs includes provision for increased expenditure on oil search and forestry activities; the increase in other services mainly reflects an additional £283,000 for oil search subsidy and £315,000 for the Atomic Energy Commission, of which £200,000 is for salaries and the balance for supplies and services. Primary Industry. - Of the estimated increase in expenditure of £404,000, £240,000 is for increased running costs and £164,000 is for increased expenditure on other services. Prime Minister's. - The estimated increase in expenditure of £3,767,000 comprises increases of £545,000 in running costs and £3,222,000 in expenditure on other services. The increase in running costs is due to increases of £364,000 in staff and salary costs and £102,000 in the administrative expenses of the Australian Security Intelligence Organization. Expenditures on other services include increases of £846,000 for the Australian National University; £1,500,000 for the introduction of secondary school level Commonwealth Scholarships; £442,000 for university level Commonwealth Scholarships; and £136,000 for the National Library. Repatriation. - The estimated increase in expenditure of £262,000 is mainly due to increases in salary costs. Shipping and Transport. - The estimated decrease in expenditure of £513,000 in 1964-65 is the net result of an estimated increase of £98,000 in running costs and a decrease of £611,000 in other services. This latter decrease mainly reflects an estimated fall of £572,000 in expenditure on ships built in Australian shipyards. Social Services. - Of the estimated increase in expenditure of £267,000 in 1964-65, running costs are estimated to increase by £135,000 and expenditure on other services by £132,000. The estimated increase in expenditure on other services reflects a provision of £150,000 for grants under the Disabled Persons Accommodation Act 1963; there was no expenditure under this Act in 1963-64. Territories. - Increased running costs, mainly in respect of increased salary payments, account for the entire increase of £152,000 in estimated expenditure in 1964-65. Trade and Industry. - Expenditure is estimated to increase by £547,000 in 1964-65, of which £483,000 is for increased running costs and £64,000 is for increased expenditure on other services. The estimated increase in running costs includes provision for expenditure of an additional £186,000 for increased trade publicity, £133,000 to cover the continuing expansion of the Commercial Intelligence Service; and a new provision of £50,000 for trade promotion visits. Treasury. - The estimated increase in expenditure of £1,031,000 arises from an increase in runningcosts of £1,529,000 and a decrease of £498,000 in expenditure on other services. Increases in staff and salaries account for £1,171,000 of the higher estimated running costs. Increased mechanization programmes in Central Treasury, the Taxation Branch and the Bureau of Census and Statistics are estimated to add £105,000 to administrative costs. Administrative costs of the National Mint are estimated to increase by £152,000. The estimated decrease in expenditure on other services reflects a reduction in minting of present coins, and a consequent reduction of £206,000 in the loss on minting, and a reduction of £215,000 in disbursements of assets received under the Japanese Peace Treaty. Works. - The estimated increase in expenditure in 1964-65 of £1,139,000 is entirely attributable to increased running costs, including £807,000 for increased salary and staff payments. Of the estimated increase of £3,180,000 in expenditure in 1964-65, £2,950,000 represents the estimated cost of Budget proposals. Recent wage determinations explain £283,000 of the estimated increase. War and Service Pensions and Allowances. - The estimated increase in expenditure is £1,208,000. The proposed increases in pensions are estimated to cost £2,950,000 in 1964-65 and £2,828,000 will be required for expected increases in the number of pensioners and in rates of existing pensions following re-assessment of incapacity and the full year effect of the increased benefits granted in 1963-64. By comparison with 1963-64, however, total expenditure will not increase by £5,778,000 in 1964-65 because there was an extra twelve-weekly bank payment of pensions in 1963-64 that cost £4,570,000. Repatriation Hospitals and Other Institutions. - the operating expenses of Repatriation hospitals, out-patient clinics, artificial limb centres and Anzac Hostels in 1964-65 are estimated to exceed expenditure in 1963-64 by £1,014,000. Of this increase, an amount of £283,000 is attributable to the recent increase in the basic wage, £189,000 to the full year cost of salaries and wages of staff appointed during 1963-64, and the cost of filling approved vacant positions in 1964-65. Increased fees for visiting medical specialists are estimated to cost an additional £163,000 in 1964-65. Other operating costs generally are estimated to increase by £379,000 resulting mainly from a greater number of in-patients. Other Repatriation Benefits. - The estimated increase of £958,000 in expenditure in 1964-65 largely reflects the continuing growth in the numbers receiving medical and related treatment The increase comprises £292,000 to meet the cost of increased visits and consultations by medical personnel and the greater cost of ancillary medical services; £227,000 for increased costs of maintenance of patients in non-departmental institutions because of a rise in both in-patient days and general maintenance costs; £161,000 for higher costs of pharmaceutical services resulting from an expected rise in the number of prescriptions; and £278,000 for increased maintenance, travel and incidental costs of the larger numbers of beneficiaries receiving treatment and assistance. Of the estimated increase in expenditure of £12,514,000 in 1964-65, £4,143,000 is in respect of increased wage and salary payments resulting from recent wage determinations. The main factors responsible for variations between estimated expenditure in 1964-65 and actual expenditure in 1963-64 are: - Railways. - The estimated increase of £739,000 in expenditure in 1964-65 includes £184,000 for the recent basic wage increase and £555,000 for additional operating and maintenance costs associated with an expected expansion in the volume of traffic and improvements being carried out to the Trans-Australian Railway track. Post Office. - The estimated increase in expenditure in 1964-65 is £10,052,000. Salaries and wages are expected to increase by £7,204,000, of which £3,603,000 is due to the basic wage increase and the balance of £3,601,000 to additional staff, the full year cost of staff engaged in 1963-64, and other increases in wages and allowances. Provision has been made for an increase of £874,000 in administrative expenses, mainly the additional costs of travelling and subsistence, printing of telephone directories, and the upkeep and hire of motor vehicles. Expenditure on stores and materials is expected to increase by £1,111,000 mainly for the operation and maintenance of engineering services facilities. Conveyance of mails by outside agencies is expected to cost an additional £558,000 in 1964-65. Broadcasting and Television. - Expenditure is estimated to increase by £1,723,000 in 1964-65, of which £356,000 is for the recent basic wage increase. The costs of the Postmaster-General's Department for technical and other services are expected to increase by £141,000 almost entirely as a result of the opening of new television stations. The increase in respect of the Australian Broadcasting Commission is estimated to be £1,570,000, including £240,000 for the basic wage increase, and £548,000 for radio studio technical services the control of which will be transferred from the Post Office. The estimate for 1964-65 includes an amount of £439,000 to meet the cost of higher wages and salaries arising from recent wage determinations. The main factors contributing to variations between estimated expenditure in 1964-65 and actual expenditure in 1963-64 are: - Australian Capital Territory. - The estimated increase of £775,000 in expenditure in 1964-65 reflects the continuing development of the National Capital. Provision has been made for additional expenditure of £88,000 for the Australian Capital Territory police, £77,000 for the maintenance of parks and gardens, £332,000 for educational services, and £239,000 for the operation of health services (mainly Canberra Community Hospital). Administrative expenditure of the National Capital Development Commission in 1964-65 is expected to increase by £35,000. Northern Territory. - The requirements of the Northern Territory Administration account for £644,000 of the total estimated increase of £912,000 in 1964-65. The operation of public utility services will require increased expenditure of £106,000 and repairs and maintenance and development services an additional £90,000. In addition, an increased provision of £91,000 has been made for operation of health services. Papua and New Guinea. - The estimated expenditure of £28,232,000 in 1964-65 relates almost entirely to the grant of £28,000,000 by the Commonwealth to the Administration of the Territory to meet the difference between proposed expenditure and local revenue. It is estimated that expenditure by the Administration will increase by approximately £5,280,000 in 1964-65, of which £2,751,000 will be met from an increase in the grant from the Commonwealth. This will provide for recruitment of additional staff and increased expenditure on capital works and services, particularly for roads, bridges and wharfs. Total expenditure on Capital Works and Services is expected to be £212,219,000 in 1964-65, or £24,231,000 more than in 1963-64. Since £10,750,000 of expenditure by the Snowy Mountains Hydro-electric Authority is expected to be charged to Loan Fund in accordance with the Loan (International Bank for Reconstruction and Development) Act 1962, £201,469,000 of the estimated expenditure on Capital Works and Services is expected to be charged to the Consolidated Revenue Fund in 1964-65. Of the estimated increase in expenditure in 1964-65, £1,044,000 is the direct cost of increased wage and salary payments resulting from recent wage determinations. The main factors responsible for variations between estimated expenditure in 1964-65 and actual expenditure in 1963-64 are: - Civil Aviation. - The estimated increase of £471,000 in expenditure under this head is related mainly to additional navigational aids required because of the increasing density in air traffic, and the greater speeds expected to occur with the introduction of pure jet aircraft on domestic routes towards the end of 1964. Commonwealth Scientific and Industrial Research Organization. - It is estimated that expenditure will be £1,451,000 greater in 1964-65 than in 1963-64. Expenditure on scientific computing equipment is estimated to increase by £1,472,000, and expenditure on laboratory equipment by £121,000. External Affairs. - Expenditure is estimated to decrease by £865,000 in 1964-65. In 1963-64, expenditure of £550,000 was incurred on the acquisition of a Chancery site in Washington; there will be no comparable payment in 1964-65. Health. - Expenditure is estimated to increase by £314,000 in 1964-65, mainly reflecting a provision of £300,000 for additional capital for the Commonwealth Serum Laboratories Commission. Housing - War Service Homes. - It is estimated that £35,000,000 will be expended on War Service Homes in 1964-65, the same amount as in 1963-64. National Development - Snowy Mountains Hydro-electric Authority. - Expenditure by the Authority is estimated to decrease by £1,880,000 as a result of reduced expenditure on major works within the Snowy Scheme with substantial completion of some works, and greater recoveries from the New South Wales Government in respect of expenditure by the Authority as agent for the State in constructing the Blowering storage works. The bulk of Authority expenditure is related to the Snowy-Murray section of the Scheme. The Murray 1 Power Station is expected to be in operation by the winter of 1966. It is estimated that of total expenditure of £21,650,000 in 1964-65, £10,750,000 will be financed from drawings during 1964-65 on the loan of $100,000,000 being made to the Commonwealth by the International Bank for Reconstruction and Development in respect of the Murray 1 power project. National Development - Australian Atomic Energy Commission. - Expenditure is estimated to increase by £106,000 in 1964-65, mainly because of expenditure on works scheduled for construction in 1963-64 but deferred until 1964-65. National Development - Other Items. - The estimated increase in expenditure of £217,000 is attributable to an increase of £174,000 in 1964-65 in payments under the River Murray Waters Act, including the Commonwealth's contribution to the cost of constructing the Chowilla Reservoir, and to additional requirements of the Forestry and Timber Bureau, which was transferred to the Department in 1963-64. Prime Minister's - Australian National University. - Expenditure by the Australian National University in 1964-65 is estimated to be £2,718,000, an increase of £379,000 on expenditure in 1963-64. The estimate for 1964-65 relates to the programme of capital works and services recommended by the Australian Universities Commission for the 1964-66 triennium and to University housing. Shipping and Transport - Railway Projects. - Expenditure under this heading is estimated to increase by £6,029,000 in 1964-65. Under the Railway Agreement (Western Australia) Act 1961, tho Commonwealth is to provide financial assistance for the construction of a standard gauge railway from Kwinana to iron ore deposits at Koolyanobbing and to Kalgoorlie. Payments amounting to £3,763,000 were made in 1963-64 and it is estimated that £7,500,000 will be required in 1964-65. Work on the standardization of the Port Pirie-Broken Hill railway commenced during 1963- 64 as a project under the Railway Standardization (South Australia) Agreement Act 1949. Expenditure under this Agreement during the year amounted to £1,463,000 and it is estimated that £3,779,000 will be required in 1964-65. Shipping and Transport - Other Items. - Expenditure under this heading is estimated to increase by £1,307,000 in 1964-65. Additional capital of £1,500,000 is expected to be provided for the Australian Coastal Shipping Commission (the Australian National Line) for expenditure on ship construction. Expenditure on the replacement of five lighthouse supply vessels is estimated to be £194,000 less than in 1963-64 as this programme of work is nearing completion. Treasury. - It is estimated that expenditure will increase by £1,409,000 in 1964-65. It is estimated that expenditure associated with the electronic computer installation will increase by £1,755,000 in 1964-65. Expenditure on machinery for the National Mint is estimated to be £275,000 higher, and an additional £400,000 is required to cover contract payments to Branches of the Royal Mint for the stockpiling of decimal coinage. In 1963-64, there was an advance of £958,000 to the Government Printer's Trust Account; there will be no comparable payment in 1964-65. Works - Plant and Equipment, &c. - Expenditure by the Department of Works on plant, equipment, &c, is estimated to increase by £241,000 in 1964- 65. Works - Civil Works - Civil Aviation. - Expenditure on buildings, works, furniture and fittings is estimated to increase by £2,333,000 in 1964-65. An additional £548,000 is estimated to be requiredfor Stage 1 of Tullamarine Airport, £1,587,000 for the runway extension at Sydney Airport and £238,000 for runway and taxiway works at Launceston Airport. Works - Civil Works - Customs and Excise.Expenditure is estimated -to increase by £444,000 in 1964-65, mainly because of increased requirements for the new Customs House, Melbourne. Works - Civil Works - Interior. - Expenditure is estimated to increase by £785,000 in 1964-65, almost entirely because of increased expenditure on Commonwealth Offices, Melbourne, Stage 2. Commonwealth Railways. - Expenditure in 1964-65 is estimated to increase by £391,000, mainly because of the proposed purchase of additional locomotives and rolling stock and increased expenditure on improvements to be carried out on the Trans-Australian Railway track. Post Office. - Expenditure is estimated to increase in 1964-65 by £8,439,000, of which £7,345,000 is related to the programme for telecommunications equipment and covers the provision of subscribers' telephone services, trunk facilities and associated equipment. Expenditure on miscellaneous plant and equipment is expected to increase by £1,086,000, including £500,000 for electronic computer equipment. Overseas Telecommunications Commission.The provision of £1,000,000 in 1964-65 is required to meet portion of the expenditure on the Seacom submarine cable project, and for an initial capital contribution to the global communication satellite system; this provision is £722,000 less than in 1963-64. Broadcasting and Television. - Estimated expenditure in 1964-65 is £1,210,000 greater than in 1963- 64, and includes an increased provision of £1,205,000 for television transmission equipment which is associated with Stage 4 of regional television development. Australian Capital Territory. - Expenditure in 1964- 65 is estimated to increase by £2,032,000. An additional amount of £1,480,000 is provided for the National Capital Development Commission's programme and £161,000 for the Department of Health (Canberra Community Hospital development). Advances to local building societies are expected to require an additional £147,000 in 1964-65. Provision of £407,000 has been made for advances to the Australian Capital Territory Electricity Authority, £168,000 less than in 1963-64. Northern Territory. - The 1964-65 provision for the Northern Territory is £464,000 greater than in 1963-64. This estimate includes increases of £97,000 for health services, £616,000 for advances to the Northern Territory Housing Commission for rental housing, and £224,000 for plant and equipment for the Northern Territory Administration, including the Central Motor Transport Pool. Provision of £500,000 has been made in respect of the beef cattle roads programme; this is £400,000 less than expenditure in 1963-64. Papua and New Guinea. - The estimated decrease of £112,000 in expenditure in 1964-65 relates almost entirely to the Exservicemen's Credit Scheme of Papua and New Guinea, for which applications closed in November, 1962. {:#subdebate-57-3} #### Item No. 21. - Loan Consolidation and Investment Reserve In 1963-64, an amount of £14,875,000 was paid from Consolidated Revenue to the Loan Consolidation and Investment Reserve. It is estimated that the payment to the Loan Consolidation and Investment Reserve in 1964-65 will be £65,222,000. Item No. 22. - Redemption of Treasury Bills. In 1963-64, an amount of £18,000,000 was expended from Consolidated Revenue for redemption of Treasury Bills. No provision has been made for any comparable payment in 1964-65. {:#subdebate-57-4} #### Receipts The National Welfare Fund Act 1952 requires an appropriation from Consolidated Revenue to the National Welfare Fund each year of an amount equal to expenditure from the Fund in that year. Accordingly, as expenditure from the Fund in 1964-65 is estimated to increase by £35,805,000, a corresponding increase is expected in the moneys received by the Fund from Consolidated Revenue. After taking account also of an estimated increase of £37,000 in interest received from the investment of the balance in the Fund, total receipts of the National Welfare Fund in 1964-65 are estimated at £454,268,000 or £35,842,000 more than in 1963-64. {:#subdebate-57-5} #### Expenditure It is estimated that expenditure from the National Welfare Fund will rise by £35,805,000 to £452,153,000 in 1964-65. Proposed increases in age, invalid and widows' pensions and tuberculosis allowances are estimated to cost £7,825,000 in 1964-65. £10,000,000 is required for the Homes Savings Grants Scheme that began on 20th July, 1964. The full-year effect in 1964-65 of changes made during 1963-64 amounts to £18,100,000, of which £5,100,000 is for increases in pensions and allowances granted in the 1963-64 Budget, and £13,000,000 for new and increased rates of child endowment and medical benefits announced in November, 1963, and payable from 14th January, 1964, and 1st June, 1964, respectively. The annual- rate of expenditure will be £8,980,000 higher, after allowing for a reduction of £2,112,000 in payments for unemployment benefits, largely as a result of the growth in the number of beneficiaries expected to occur in 1964-65. These estimated increases in the rate of expenditure aggregate £44,905,000, but one less twelve-weekly bank credit and one less four-weekly cheque payment of child endowment and one less fortnightly cheque payment of widows' pension in 1964-65 will reduce expenditure by comparison with 1963-64 expenditure by £9,100,000. Thus the net increase in estimated expenditure is £35,805,000. Comments on particular items of expenditure, where the estimate for 1964-65 varies substantially from actual expenditure in 1963-64, are set out below: - Age and Invalid Pensions. - It is estimated that in 1964-65 expenditure will rise by £14,730,000. Of this, the proposal to increase pensions accounts for £7,170,000. Approximately one half of the balance of £7,560,000 is due to the continuing increase in the number of pensioners, and the balance to the full-year effects of the higher rates of pension for single pensioners and of wives' and children's allowances granted in 1963-64. Widows' Pensions. - Expenditure on widows' pensions is expected to increase by £2,146,000 in 1964-65. The estimated cost of the proposed increases in the rates of widows' pensions is £630,000 and an additional £2,216,000 is estimated to be required for an increased number of pensioners and the full-year cost of the new and higher rates of benefits granted in 1963-64. In 1963-64 £700,000 was required for an extra fortnightly pension payment that will not recur in 1964-65. Child Endowment. - The estimated increase in expenditure is £1,321,000. An increase in the number of endowed children and the full year effect of the new and increased benefits payable from 14th January, 1964 are estimated to cost £9,721,000 in 1964-65. By comparison with 1963-64, however, total expenditure will not increase by this amount because there were an extra twelve-weekly credit and an extra four-weekly cheque payment of child endowment in 1963-64 that cost £8,400,000. Unemployment and Sickness Benefits. - Provision is made under this heading for expenditure of £4,500,000 on unemployment benefit and £4,200,000 on sickness and special benefits. Corresponding expenditure in 1963-64 was £6,729,000 and £4,083,000, respectively. The estimated decrease of £2,229,000 in payments of unemployment benefit reflects an estimated reduction in the average level of unemployment in 1964-65. Hospital Benefits. - Expenditure on hospital benefits is estimated to increase by £1,017,000 in 1964-65. The increase is largely attributable to increasing availability of beds in private nursing homes qualifying for Commonwealth benefit. Pharmaceutical Benefits. - Expenditure in 1964-65 is estimated to increase by £1,112,000, mainly because of greater utilization of benefits under the scheme. Pharmaceutical Benefits for Pensioners. - The estimated increase in expenditure of £109,000 under this item in 1964-65 is attributable to an increase in the number of pensioners enrolled in the Pensioner Medical Service and greater utilization. Medical Benefits. - Expenditure on medical benefits is estimated to rise by £5,976,000 in 1964-65. About £4,500,000 of the increase results from higher rates of Commonwealth benefit applying from 1st June, 1964. The balance is attributable to increasing membership of medical benefit organizations and a rise in the average yearly number of services per member qualifying for Commonwealth benefit. Medical Services for Pensioners. - It is estimated that in 1964-65 the cost of this service will rise by £284,000 because of an increase in the number of eligible pensioners. Milk for School Children.-- The estimated increase of £152,000 under this heading is due mainly to the larger numbers of schools and children participating in the scheme. Miscellaneous Health Services. - The estimated increase in expenditure of £647,000 under this item in 1964-65 is due mainly to an accounting change referred to in the footnote to the table on the National Welfare Fund. Larger supplies of blood products are estimated to cost an additional £175,000 in 1964-65. Tuberculosis Medical Services and Allowances. - The estimated increase in expenditure of £325,000 in 1964-65 is mainly due to increased compulsory mass X-ray surveys and diagnostic activity in the States. Homes Savings Grants. - Expenditure under the Homes Savings Grants Scheme in 1964-65 is estimated at £10,000,000. There was no comparable expenditure in 1963-64. STATEMENT No. 5. - ESTIMATED LOAN TRANSACTIONS, 1964-65. {: .page-start } page 74 {:#debate-58} ### LOAN COUNCIL BORROWING PROGRAMMES, 1964-65 At its meeting in July, 1964, the Loan Council approved a governmental borrowing programme of which £290,000,000 is for State works and housing in 1964-65. The Loan Council also approved a borrowing programme of £125,000,000 for State semi-government and local authorities with programmes in excess of £100,000 in 1964-65, and a programme of £2,140,000 for Commonwealth authorities. In addition, the Loan Council decided that no overall limit should be placed on borrowings by authorities for which the State Governments approve programmes of not more than £100,000 in 1964-65. The approved allocations for State works and bousing in 1964-65 are compared below with the final allocations for 1963-64. State domestic raisings are estimated to produce £7,000,000 in 1964-65, so that loan raisings of £283,000,000 will be required to complete this year's borrowing programme for works and housing purposes. In 1963-64, State domestic raisings were £10,016,000 so that the total amount required to complete the borrowing programme was £261,984,000. Details of the manner in which the State works and housing programmes have been financed since 1951-52 are given in the White Paper "Common wealth Payments to or for the States, 1964-65 ", issued for the information of the Parliament in connexion with the Budget. {: .page-start } page 74 {:#debate-59} ### WAR SERVICE LAND SETTLEMENT, 1964-65 It is estimated that payments to the States for War Service Land Settlement, which will again be financed from loan moneys in 1964-65, will amount to £4,500,000 compared with £4,262,000 in 1963-64. The composition of estimated expenditure in 1964-65 compared with actual expenditure in 1963-64 is as follows: - {: .page-start } page 74 {:#debate-60} ### MOUNT ISA RAILWAY PROJECT The Railway Agreement (Queensland) Act 1961 provides for the making of advances of up to £20,000,000 to Queensland towards the cost of improving the Mount Isa-Townsville-Collinsville railway. These advances are repayable by the State, with interest, over a period of twenty years commencing six months after the scheduled completion date of 31st December, 1964. This work is drawing to a close and the final Commonwealth contribution should be made during 1964-65. The total cost (originally estimated at £30,000,000) is now expected to be £27,100.000, of which the Commonwealth's share of two-thirds will be £18,067,000. To 30th June, 1964, the Commonwealth had advanced £15,759,000 (including £6,050,000 in 1963-64), leaving an estimated requirement of £2,308,000 for 1964-65. {: .page-start } page 75 {:#debate-61} ### SNOWY MOUNTAINS HYDRO-ELECTRIC SCHEME lt is estimated that drawings against the International Bank loan for the Snowy Mountains Hydro-electric Scheme will total £10,615,000 in 1964-65. Expenditure on the Scheme to be met from Loan Fund in 1964-65 is estimated to be £10,750,000. {: .page-start } page 75 {:#debate-62} ### REDEMPTIONS OF MATURING SECURITIES, 1964-65 At 30th June, 1964, Commonwealth Inscribed Stock and Bonds maturing in Australia in 1964-65 totalled £347,833,000. Details arc as follows:- Commonwealth Registered Stock finally maturing in London in 1964-65 totalled £15,867,000 (£stg.l2,655,500) at 30th June, 1964 and consisted of 3 per cent. Stock which was issued in 1948 on behalf of New South Wales and is due to mature on 1st May, 1965. In addition to redemptions of the abovementioned securities, there will be repayments of £9,074,000 (U.S.$20,326,000) to the International Bank, and further amounts will be required to meet the cost of market repurchases, &c, in Australia and overseas. The total expenditure from the National Debt Sinking Fund in 1964-65 is estimated to be £125,000,000. lt is estimated that the income of the Sinking Fund, which will be available to assist in financing this expenditure, will be £95,000,000 in 1964-65. In the foregoing table, the Commonwealth Budget is presented in national accounts form. In this form, the receipts and outlay of the Commonwealth are classified into categories which are directly comparable with those for which similar information is provided, in respect of past years, for the entire economy in the White Paper on National Income and Expenditure presented to the Parliament with the Budget each year. The table compares the actual outcome in 1963-64 with the Budget estimates for that year, with the actual outcome for 1962-63, and with the prospective outcome for 1964-65 implied by the present Budget estimates. A Supplement to the Treasury Information Bulletin, entitled " National Accounting Estimates of Public Authority Receipts and Expenditure ", reproduces the figures given in this table and provides comparable figures for earlier years from 1953-54 onwards. At the same time it provides. inter alia, a detailed explanation of the basis on which the figures are compiled together with some material relevant to their interpretation. BUDGET RESULTS, 1963-64. Net direct expenditure on goods and services from the Budget in 1963-64 totalled £530,000,000, £4,000,000 less than the Budget estimate and £67,000,000 more than in 1962-63. After allowance for the effects of accounting changes, current expenditure on goods and services totalled £56,000,000 more than in 1962-63, and fixed capital expenditure on new assets and increase in stocks was £11,000,000 greater than in 1962-63. Cash benefits to persons in 1963-64 amounted to £514,000,000, £5,000,000 more than the Budget estimate and £46,000,000 more than in 1962-63. Grants to States, at £448,000,000, were £3,000,000 less than estimated in the Budget but £22,000,000 greater than in 1962-63. Subsidies were £52,000,000 in 1963-64, an increase of £3,000,000 over the Budget estimate and one of £15,000,000 over 1962-63. Including interest paid, oversea grants and grants towards private capital expenditure, total expenditure in 1963-64, at £1,764,000,000, was £1,000,000 more than the Budget estimate and £164,000,000 more than in 1962-63. After taking account of loans for capital works and housing through the Budget, which at £346,000,000 were £7,000,000 less than the Budget estimate and £11,000,000 more than in 1962-63, total outlay was £2,110,000,000. This was £6,000,000 less than estimated in the Budget and £175,000,000 more than in 1962-63. Total taxation receipts in 1963-64 were £1,610,000,000, £50,000,000 greater than had been estimated in the Budget and £169,000,000 more than in 1962-63. After allowance for receipts of interest, rent and dividends, the income of public enterprises and the proceeds of net sales of existing assets, the net increase in indebtedness in 1963-64 was £247,000,000. This was £63,000,000 less than had been estimated in the Budget and £6,000,000 less thanthe net increase in indebtedness in 1962-63. BUDGET ESTIMATES, 1964-65. Net direct expenditure on goods and services from the Budget in 1964-65 'is estimated to total £616,000,000, £86,000,000 more than in 1963-64. Current expenditure on goods and services is estimated to be £480,000,000, £62,000,000 more than in 1963-64, and fixed capital expenditure on new assets and increase in stocks is estimated at £136,000,000, £24,000,000 more than in 1963-64. Cash benefits to persons in 1964-65 are estimated to total £543,000,000, an increase of £29,000,000 on 1963-64. Grants to States are estimated to be £479,000,000, £31,000,000 more than in 1963-64. Grants towards private capital expenditure are estimated to increase by £17,000,000, to £21,000,000 in 1964-65. Including interest paid, oversea grants and subsidies, total expenditure in 1964-65, at £1,940,000,000, is estimated to be £176,000,000 greater than in 1963-64. After taking account of loans for capital works and housing through the Budget to the States and others, which in 1964-65 are estimated to total £382,000,000, or £36,000,000 more than in 1963-64, total outlay in 1964-65 is estimated to be £2,322,000,000. This would be an increase of £212,000,000 over total outlay in 1963- 64. It is estimated that total taxation receipts in 1964- 65, on the basis of existing legislation, would be £1,777,000,000, or £167,000,000 greater than in 1963-64. After allowance for the effects of the changes in taxation proposed in the Budget, it is estimated that total taxation receipts in 1964-65 will be £1,844,000,000, an increase of £234,000,000 over 1963-64. Public enterprises income, on the basis of existing rates of charges, is estimated to be £61,000,000 in 1964-65, unchanged from the 1963- 64 level. After allowance for the effects of the changes in rates of charges proposed in the Budget, it is estimated that public enterprises income in 1964- 65 will be £71,000,000, £10,000,000 more than in 1963-64. After taking account of interest, rent and dividends received and the proceeds of net sales of existing assets, it is estimated that, on the basis of existing legislation, the net increase in indebtedness in 1964-65 would be £279,000,000, £32,000,000 more than the net increase in indebtedness which occurred in 1963-64. After allowance for the effects of the changes in rates of taxation and other charges proposed in the Budget, the net increase in indebtedness in 1964-65 is estimated at £202,000,000. This would be £45,000,000 less than the net increase in indebtedness which occurred in 1963-64. RECONCILIATIONS. The following tables show how the figures contained in the table opposite, and particularly the figure for the net increase in indebtedness, may be reconciled with those given in Statements 1 and 2, and with figures in the White Paper "National Income and Expenditure 1963-64 ". Debate (on motion by **Mr. Calwell)** adjourned. {: .page-start } page 80 {:#debate-63} ### APPROPRIATION (SPECIAL EXPENDITURE) BILL 1964-65 Message from the Administrator recommending appropriation for proposed expenditure announced. Bill presented by P.'r. Harold *Holt,* and read a first time. Second Riding. {: #debate-63-s0 .speaker-009MC} ##### Mr HAROLD HOLT:
Treasurer · Higgins · LP -- I move - >That the Bill be now read a second time. On the occasion of presenting the Supply Bill 1964-65 I explained the changes being made in the form of the annual appropriation measures to distinguish between appropriations which are, and those which are not, for the ordinary annual services of the Government. This distinction has been continued in the Bill now presented to the Parliament. This Bill contains those appropriations for which, in the opinion of the Government and its legal advisers, a good case can not be made out for the view that they are for the ordinary annual services of the Government. During these intervening months, further consideration has been given to this classification of appropriations. Discussions on this question are continuing and pending their completion, no alteration has been made to the form of the Bills which was adopted in May. The main points regarding the proposed expenditures contained in this Bill are dealt with in my Budget Speech. I commend the Bill to honorable members. Debate (on motion by **Mr. Crean)** adjourned. {: .page-start } page 81 {:#debate-64} ### BUDGET 1964-65 {: #debate-64-s0 .speaker-009MC} ##### Mr HAROLD HOLT:
HigginsTreasurer · LP -I present the following papers in connection with the budget for 1964-65 for the information of honorable members - >Estimates of Receipts and Summary of Estimated Expenditure for the year ending 30th June, 1965. > >Commonwealth Payments to or for the States 1964-65. > >National Income and Expenditure 1963-64. Government Securities on Issue at 30th June, 1964. > >Income Tax Statistics for income year 1961-62. Civil Works Programme 1964-65 prepared by the Minister for Works. Ordered to be printed. SALES TAX BILLS (Nos. 1 to 9) 1964. Bills presented by **Mr. Harold** Holt, and together read a first time. {:#subdebate-64-0} #### Second Readings {: #subdebate-64-0-s0 .speaker-009MC} ##### Mr HAROLD HOLT:
HigginsTreasurer · LP -- I move - >That the Bills be now read a second time. The sole purpose of these Bills is to give effect to the proposal announced in the Budget speech that the rate of sales tax on motor cars shall be increased from 22) per cent, to 25 per cent, on and from tomorrow, 12th August. The higher rate is to apply to all those types of vehicles for the transport of persons which have hitherto been taxed at the rate of 22) per cent. The rate of tax on commercial motor vehicles, and on parts for motor vehicles, remains unchanged at 121/2 per cent. The proposal to increase the tax on motor cars is one of the steps designed to produce the increased revenue which is necessary in order that the Commonwealth may be in a position to meet its obligations as outlined in the Budget speech. It is estimated that this increase will produce additional revenue of the order of £6,250,000 in a full year and £5,000,000 for 1964-65. I commend the Bills to honorable members. Debate (on motion by **Mr. Crean)** adjourned. {: .page-start } page 81 {:#debate-65} ### TARIFF PROPOSALS 1964 {:#subdebate-65-0} #### Customs Tariff Proposals (No. 19); Excise Tariff Proposals (No. 1) {: #subdebate-65-0-s0 .speaker-JTP} ##### Mr BURY:
Minister for Housing · Wentworth · LP . -I move - [Customs Tariff Proposals (No. 19).] {: type="1" start="1"} 0. That the Schedule to the Customs Tariff 1933-1964, as proposed to be amended by Customs Tariff Proposals, befurther amended as set out in the Schedule to these Proposals and that, on and after the twelfth day of August. One thousand nine hundred and sixty-four. Duties of Customs be collected accordingly. 1. That in these Proposals, " Customs Tariff Proposals " mean the Customs Tariff Proposals introduced i nto the House of Representatives on the following dates: - 8th April, 1964; 16th April, 1964; 23rd April, 1964 13th May, 1964; and 20th May, 1964. [Excise Tariff Proposals (No. 1).] That the Schedule to the Excise Tariff 1921-1963 bc amended as set out in the Schedule to these Proposals and that on and after the twelfth day of August, One thousand nine hundred and sixty-four, Duties of Excise be collected in pursuance of the Excise Tariff 1921-1963 as so amended. **Mr. Deputy Speaker,** the tariff proposals I have just introduced provide for amendments to the Customs Tariff and Excise Tariff foreshadowed in the Budget speech this evening. The summaries of alterations, which are attached to the copies of the proposals circulated to honorable members, set out the proposed rates of duty as compared with those at present in operation. The new duties will take effect from tomorrow morning. I commend the proposals to honorable members. Debate (on motion by **Mr. Crean)** adjourned. {: .page-start } page 84 {:#debate-66} ### LOAN (WAR SERVICE LAND SETTLEMENT) BILL 1964 Bill - by leave - presented by **Mr. Adermann,** and read a first time. {:#subdebate-66-0} #### Second Reading {: #subdebate-66-0-s0 .speaker-JLR} ##### Mr ADERMANN:
Minister for Primary Industry · Fisher · CP -- I move - That the Bill be now read a second time. This Bill provides for the raising of loan moneys amounting to £4,500,000 for war service land settlement in the States of Western Australia, South Australia and Tasmania during the 1964-65 financial year. As honorable members are aware the Commonwealth is responsible for the provision of the whole of the capital moneys required for the scheme in those three States. It is anticipated the money will be made available in the following amounts - As I pointed out when introducing a similar bill to Parliament last year repayments which were formerly paid to the credit of the Loan Fund and became available for reuse are now being paid to the Consolidated Revenue Fund. The amount of £4,500,000 is, therefore, the gross amount required for grants under the States Grants (War Service Land Settlement) Act 1952-53. In Western Australia only minor development work has still to be completed and nearly all the money provided will be required for making advances to settlers for working capital, including replacement stock and plant. It is a basic principle of the scheme that lack of capital by an applicant is not a bar to participation in the scheme. In fact, most settlers have borrowed their full financial requirement, any private capital they had being required to meet costs associated with the move to and the furnishing of their new homes. As security for the advances made to settlers, a mortgage over the lease is taken with collateral bills of sale, and so on, over stock and plant. Consequently, the settlers usually have no acceptable security to offer to those institutions normally operating in the field of rural credit. While the Commonwealth has no desire to compete with these institutions, there is no alternative to providing the reasonable requirements of settlers for credit until they reach a stage of financial solvency which will justify some security documents being discharged. In South Australia there is still some development work to be completed on holdings on Kangaroo Island, mainly on those in the Hundreds of Ritchie, Gosse and Borda towards the western end of the Island. It is also estimated about £100,000 will be spent in respect of farms in the Loxton irrigation area, mainly on work associated with the drainage of the farms and the replacement of certain irrigation channels with pipelines. However, as with Western Australia, the bulk of the provision of £1,085,000 for South Australia will be required for advances to the settlers, although the average per capita demand will not be as high. Co-operative societies, packing houses, and so on, are meeting some settlers' requirements for working expenses in the irrigation areas and many settlers have chosen to obtain part of their financial requirements from stock firms. In Tasmania work is still proceeding on holdings on King and Flinders Islands and at Togari - previously known as Montagu Swamp. Provision is also made in the amount to be made available to Tasmania this financial year for the cost of credits to be given to settlers on these projects for work they have done towards bringing their farms to the desired standard of development. While an end is now in sight for work of developmental nature it will be necessary for the Commonwealth to provide annually for moneys required to make credit facilities available to settlers for some years to come. I commend the Bill to honorable members. Debate (on motion by **Mr. Crean)** adjourned. {: .page-start } page 85 {:#debate-67} ### LOAN (HOUSING) BILL 1964 Bill - by leave - presented by **Mr. Bury,** and read a first time. {:#subdebate-67-0} #### Second Reading {: #subdebate-67-0-s0 .speaker-JTP} ##### Mr BURY:
Minister for Housing · Wentworth · LP -- I move - >That the Bill be now read a second time. The purpose of this Bill is to authorise the raising of loan moneys not exceeding £51,350,000 for financial assistance to the States for housing. In accordance with Che requests of the States, and with the approval of the Australian Loan Council, this amount of £51,350,000 would be allocated as follows - Honorable members will appreciate that it is the States themselves, not the Commonwealth, which decide what volume and proportion of loan funds shall be devoted to housing. The amount for which parliamentary approval is now being sought is some £1,500,000 more than the amount originally approved for housing in 1963-64. Advances to the States will be made under the authority of the Housing Agreement Act 1961, which runs to 30th June 1966 and authorises the Treasurer to make advances to the States for housing purposes. These advances are repayable over 53 years and bear interest at 1 per cent, per annum below the long term bond rate. At least 30 per cent, of the amount advanced to each State must be allocated by the State to what is called the Home Builders Account. Advances are then made from this account to building societies and other approved institutions which, in turn, make loans to individual home builders. During the past three years the Commonwealth advanced almost £150 million to the States for housing purposes. Of this amount, close to £100 million was allocated to State housing authorities who used this money to construct 31,900 dwellings. The remaining £50 million was advanced through the Home Builders Account. Funds in the Account were used to make loans to some 19,700 individuals who acquired their own homes. Of the advances made to each State housing authority, up to 5 per cent., or such greater sum as may be agreed, shall be used, if the Commonwealth so requests, for the construction of dwellings for serving members of the forces. Under this arrangement the Commonwealth must make available to the States for the housing of servicemen an amount at least equal to that allocated by the State for this purpose. During the past three years the Commonwealth has so allocated a sum of £4,800,000. Funds provided under the Commonwealth and State Housing Agreement have made a significant contribution to the financing of dwelling construction in Australia. In particular, they have been of very great assistance to many people seeking to acquire their own homes. It is expected that of the total of £51,350,000 to be advanced by the Commonwealth in the current financial year, some £33,750,000 will be allocated by the States to their housing authorities for dwelling construction, and about £17,600,000 to Home Builders Accounts. This year the States have indicated an intention to increase the funds allocated to the Home Builders Accounts for advances to building societies and other approved institutions. This will, I am sure, be welcomed by the many Australians who wish to borrow at a reasonable rate of interest to acquire their own homes. These funds will, I hope, not only provide a useful measure of Commonwealth support to the building society movement but also encourage these societies to seek new private deposits. In conclusion, may I mention that, although the total funds allocated by the States for housing under the Commonwealth and State Housing Agreement will, in 1964-65, be larger than in any previous year, they represent a smaller proportion of the total loan allocation to the States approved by the Loan Council. As I mentioned earlier, the' proportion of loan funds allocated to housing is determined by each State and not by the Commonwealth. However, the number of new dwellings commenced in Australia rose from 88,000 in 1962-63 to 107,000 in the financial year ended last June. This is a record. Loans approved by major financial institutions for new housing, including finance made available by these institutions to co-operative and terminating building societies, increased from £81,400,000 in 1961-62 to £113,300,000 in 1962-63, and to a record £134,500,000 in 1963-64. The trend in bousing construction is one of decreasing reliance on governmental activity and increasing private construction. This is a very healthy trend and one that I hope will continue. I commend the Bill to honorable members. {: .speaker-JAG} ##### Mr Crean: -- Before I move that the debate be adjourned, I wish to congratulate the new Minister for Housing **(Mr. Bury)** on the speech that he has made; but I hope that he will be a little more forthright in providing information than some of the previous Ministers in charge of housing have been. He said in his speech - >The trend in housing construction is one of decreasing reliance on governmental activity and increasing private construction. {: #subdebate-67-0-s1 .speaker-10000} ##### Mr ACTING DEPUTY SPEAKER:
Hon. W. C. Haworth -- Order! Does the honorable member intend to make a speech now? {: .speaker-JAG} ##### Mr Crean: -- No. All I am saying before I move that the debate be adjourned is that 1 hope the new Department of Housing will provide more adequate information and more assistance to home builders than has been provided in the past. The Government wants to take unto itself a lot of credit for establishing this new department. Yet the Minister said at the end of his speech- {: .speaker-10000} ##### Mr ACTING DEPUTY SPEAKER: -- Order! f think the honorable member is going a little further than moving that the debate be adjourned. {: .speaker-JAG} ##### Mr Crean: -- I am not going too far. All I say is that the Government is glossing over a lot of facts and I hope at least the new Minister will set up some means of communication between himself and the public he says he is serving. Debate (on motion by **Mr. Crean)** adjourned. {: .page-start } page 86 {:#debate-68} ### COMMONWEALTH BUREAU OF ROADS BILL 1964 {:#subdebate-68-0} #### Second Reading Debate resumed from 20th May (vide page 2137), on motion by **Mr. Freeth** - >That the Bill be now read a second time. {: #subdebate-68-0-s0 .speaker-KXI} ##### Mr WEBB:
Stirling .- The Opposition will not vote against the second reading of this bill but it will move appropriate amendments. While not opposing the measure, which provides for the establishment of a Commonwealth Bureau of Roads, the Opposition deprecates the fact that it will not help materially to solve Australia's transport problems. Whilst the Bureau, as proposed in this measure, will be of little or no benefit in the serious transport situation that faces us, it could be a start and from it could develop a body that may have teeth in it some time in the future. That is why the Opposition will not vote against the measure. We will criticise its weaknesses and move amendments and we will outline the type of authority that the Australian Labour Party would like to see set up by the Government. We hope that the Minister for Shipping and Transport **(Mr. Freeth)** will take notice of what we have to say and even at this late stage will re-examine this bill and amend it so that the proposed body can get down to the gigantic task of grappling with our roads problem. In his second-reading speech, the Minister for Shipping and Transport drew attention to the seriousness of the matter. He said - >Transport costs make up a substantial part of total production costs, and road transport now represents the largest element in land carriage of goods and people. Moreover, expenditure on roads now comprises approximately one-quarter of all public works expenditure in Australia, and its impact on economic conditions, both generally and in particular areas, is significant. Having made that statement, the Minister has brought down this anaemic, almost useless bill. Australia is the tenth largest trading nation in the world and consequently costs are important to us. Moving people and goods in this country accounts for about 25 per cent, of the national income. About one-sixth of the work force of Australia is employed in transport. High transport costs are a serious handicap to the development of our manufacturing industries. As I have said, about 25 per cent, of our national income is spent on transport costs. This compares with 9 per cent, in Canada and 10 per cent, in the United States of America. Of course it is inevitable that our transport costs should be high because of the size of Australia compared with its small population. But while the U.S.A. is approximately equal to Australia in area, the population of the United States totals about 188 million compared with approximately 11 million people *in* Australia. The disparity in transport costs in relation to national incomes - 25 per cent, in Australia compared with 10 per cent, in the U.S.A. - is too great and emphasises the need for us to achieve the greatest possible efficiency and economy in transport. We can achieve this only by developing a national transport system and it must be adequate to meet the needs of future development. It must co-ordinate all forms of transport so that the most economical use is made of each means of transport. Modes of transport must supplement rather than compete with each other. Road, rail and air transport and shipping should all fit into a national plan. Unless the Government gets down to a job of that type, there will be no immediate solution to our transport problems. The only body that can initiate a national plan is the Commonwealth Government but unfortunately it will not take the initiative. The puerile way in which it has framed this bill is an indication of how weak the Government is in the handling of this very important problem. In his second-reading speech, the Minister for Shipping and Transport referred to the fact that the Prime Minister, in his policy speech, had envisaged a national roads authority. Surely this Bureau is not the national authority referred to by the Prime Minister. This Bureau will have no authority to act. It will merely investigate and report. Its grave weakness was revealed in the Minister's speech when he stated - >The Bureau will report to the Government on its investigations but it will be for the Government to decide whether or not such reports will be published. I emphasize that the Bureau will be an investigating and advisory body only. Why should not the reports of this Bureau be presented to the Parliament? Why should not we know what is contained in those reports? What incentive will there be for the Bureau to do its work to the fullest extent to which it is capable if its reports are possibly not going to see the light of day? These reports should not only be presented to Parliament; they should be published and available to all interstate bodies and persons. The Opposition has been most active regarding the transport problem that faces Australia. Honorable members will remember that it was the Opposition .that presented its report on rail standardisation before the Government committee presented its report on the same subject. It is true that the reports were on similar lines, but the fact is that the Opposition presented a report in the first place. Yet, in regard to this important matter, it is going to be deprived of even the right to see the Bureau's report and examine the result of its investigations unless the Minister decides that the report should be placed before the Parliament. What value will these reports have if they are merely to be pigeon-holed? It is hard enough to get action when reports are tabled. For instance, I mention the report of the Constitutional Review Committee which was printed in 1959. That report was tabled, of course, but there has still been no action in regard to it. Incidentally, part of it dealt with this particular problem. The Opposition wants the right not only to peruse the reports but to analyse them and, if it thinks necessary, to move in accordance with the reports. It wants to use the forms of the House to get the action it thinks necessary. The Australian Automobile Association also asks that these reports be published. The Opposition will move amendments at the appropriate time to provide for the tabling of these reports and for the publication of an annual report by the Bureau. I remind the Minister again that other countries which have a bureau of the type envisaged in this Bill present annual reports which are published and made available to those who desire to see them. Transport is one of the most important issues that come before this Parliament. It is related to the development of Australia and, above all, it is related to the defence of Australia. The proposal to set up a Commonwealth Bureau of Roads without any authority whatever, and without even having the right to have its reports considered by the very body that establishes it, is an insult to those who will be appointed to the Bureau and an insult to this Parliament. It is not what Labour envisages as an answer to our national transport problem. At the last elections, the Australian Labour Party set forward a policy which 1 will quote to the House now so that honorable members will see what we intended to do in relation to a national roads programme. We wanted the return to the States of all petrol tax. We wanted to provide for the establishment of a national roads board to plan national highways and ascertain the best means of financing a national highway system. In the United States there is a Bureau of Public Roads which gathers facts about public road needs, assists and encourages roads research and plans federal road policies. The present national roads system of the United States was developed under the guidance of the Bureau of Public Roads. Canada, France and Germany also show the value of national roads planning. This measure, although it is a start, does not go far enough, in our view. In his second-reading speech, the Minister said that during the next five years the Commonwealth would return to the States £375 million for roads. The amount spent on roads by the Commonwealth is not equal to the amount that it collects in petrol tax. In 1963, the National Association of Australian State Road Authorities estimated the cost of a ten years road programme ending in lune 1974 at £3,615 million. This is the amount that the State and Commonwealth authorities must raise for road purposes. The estimate was the result of the work of State road authorities, whose inquiries extended over a number of years. They agreed on a required standard. Only matters that were, *in* their opinion, absolutely necessary were included in the estimate. The estimated revenues available for these purposes amount to £2,450 million. This leaves a deficiency for the period of 10 years of £1,165 million. The increased Commonwealth grant for road purposes, which was placed before the House in the Commonwealth Aid Roads Bill, amounts to £125 million, with a matching grant of £45 million. A total of £170 million will be available for the period to 1969. If the same grants are made during the period of five years ending in 1974, the deficit over the 10 years will still be £885 million. I give these figures to show that the Commonwealth is not doing nearly enough to help solve the roads problem. In 1944 fewer than one million vehicles were on the roads. Today, more than three million vehicles are on the roads and by 1974 it is estimated there will be more than six million vehicles or almost one vehicle for every two persons. Unfortunately, expenditure on the roads has not kept pace with the increased use of the roads. Since 1949, petrol consumption has risen by 170 per cent., but expenditure on roads has increased by only 110 per cent. This emphasises the point I am making. Sufficient credit has not been given to the National Association of Australian State Road Authorities for the work that it has done in presenting the problem to the Commonwealth Government. The Association is an organisation of central road authorities in the six States, together with the road constructing authorities in the Commonwealth territories. It was established in 1934 and has served to provide a means of pooling technical and administrative experience, of co-ordinating and rationalising road research projects, of harmonising and coordinating standards, of ascertaining and publishing facts about Australia's principal roads and their financing, and developing an informed national outlook on Australia's road problem. There has been close co-operation between the States on this matter. Their outlook has been a national one in the real sense of the word. The road problem of one State has, to some degree, become the concern of all States and as a result the national outlook to which I have referred has developed. Unfortunately, this Government has not taken sufficient notice of the recommendations of the National Association of Australian State Road Authorities. If it had, we would not be faced with the present serious road problem. A national authority on transport, such as that envisaged by the Opposition, would work in close co-operation with the National Association of Australian State Road Authorities, and this association would provide advice to the national body. Of course, whatever was decided would fit into a national coordinated policy on transport generally. The experts say that, at the increasing rate at which motor vehicles are coming on *to* the roads, a point could be reached in the next decade when those countries which have built roads to accommodate the vehicles will have an accelerated economic growth through faster transport costs, and those countries that have not kept pace will lose in the economic race. I have already said that transport costs in Australia are greater than transport costs in any comparable country. We must find a way of reducing these costs so that we will be able to compete with other countries. The roads are carrying approximately three-quarters of the total tonnage transported by all means. The survey of the National Association of Australian State Road Authorities revealed that only 14 per cent, of Australian roads are bitumen or concrete, 23 per cent, gravel, 25 per cent, formed and 38 per cent, unformed. This gives some idea of the overall state of our roads. We are spending only £320 a mile on roads. In Australian currency, New Zealand is spending £700 a mile and the United States £1,450 a mile. The Federal Government of the United States is giving enormous financial aid to the States for roads. At present, we have one motor vehicle for every 3.84 persons, but it is expected that by 1974 we will have one motor vehicle for every two persons. Therefore, when we look at this problem we should keep in mind not only the need to overtake the backlag in road construction but also the need to provide for the increasing number of motor vehicles coming on to the roads. Traffic congestion reduces speed and increases petrol consumption. A United Kingdom survey estimates that when the speed of traffic is reduced through congestion to 10 miles an hour petrol consumption increases by about 50 per cent. In addition, we have the wastage of tyres, mechanical parts and manpower. These factors are very important. The running loss through the inferior roads in Australia is estimated to be £1 million a day. My authority is a statement that appeared in the "West Australian" on 28th May 1962, under the heading "Roads Waste £lm. A Day - Professor". The newspaper article states - >An inadequate roads system was costing Australia £1,000,000 a day, the professor of traffic engineering at the University of New South Wales, Professor W. R. Blunden, said today. > >He said the university's school of traffic engineering had made this estimate after two years of detailed surveys and research. > >The cost was in time lost by motorists, wasted petrol and the wear and tear on vehicles because of traffic congestion. > >The survey showed that the loss to motorists in the community because of the present poor road system was £365,000,000 a year. > >This figure included waste of petrol, wear and maintenance on vehicles and the loss of time to commercial and private motorists on business trips. Other authorities estimate the cost of traffic delays at between £200 million and £400 million a year. I inform the Minister that this information comes from the 1962 proceedings of the Australian Road Research Board. The poor state of the roads is reflected in the lack of road safety in Australia. On the basis of the use of motor vehicles, we stand fourth amongst the nations of the world, but we have the worst safety record. New Zealand has 4.93 deaths for every 10,000 vehicles, the United States five deaths for every 10,000 vehicles and Canada 6.95 deaths for every 10,000 vehicles, but Australia has 8.78 deaths for every 10,000 vehicles. In each of these countries the popularity of the motor vehicle in greater than in Australia. For instance in the U.S.A. there are 2.53 persons per motor vehicle; in New Zealand, 3.18; and in Canada 3.53, compared with 3.84 in Australia. Although the U.S.A., Canada and New Zealand have a greater density of vehicles, they have lower fatal accident rates than Australia has. It is clear that the state of our roads must have some bearing on the high ratio of road deaths. We should be doing more about this tragic waste of human lives than we are doing at the present time. There will always be some casualties, of course, but if the suffering and the waste of human lives are to be reduced to a minimum we must be prepared to do more about our road problems. The Senate Select Committee on Road Safety assessed the cost of road traffic accidents in 1957-58 at almost £70,000,000. Since that year the number of accidents has increased by 6 per cent. Even though the safety record in the U.S.A. is far superior to our own, that country is not letting the position rest; it is going further into the matter. In support of my statement I quote from " Federal Aid for Highways " at page 7 where the following statement appears - >The need for such a program is obvious in today's congestion. We pay dearly for inadequate roads and streets; not just in frazzled nerves and inconvenience and in time and gasoline wasted, but in the prices of everything we buy or sell. Studies of existing freeways shows that in some cases their cost is balanced out by motorists' savings in less than 10 years. This is an important point - >The safety features of the Interstate System will save at least 5,000 lives a year. Accident rates on freeways are one-third of those on other roads with comparable traffic. Since that report was published, further information has been received in regard to what is expected to be done to save lives. The " A.A.A. Federal News Letter ", No. 3, states - >Eight thousand lives may be saved annually upon completion of the safety engineered United States National System of Interstate and Defence Highways in 1972. This prediction is based on new statistics recently issued by the United States Bureau of Public Roads. > >Some 1,130 miles of completed interstate roads have been surveyed, and the Bureau reports a traffic death rate of 2.8 fatalities per 100,000,000 vehicle miles. This contrasts with a rate of 9.7 deaths on the older highways in the same traffic corridors that formerly carried most of the present interstate traffic. > >The rate is 6.9 deaths for all highways that have been carrying the bulk of traffic to be served by the completed interstate system, thus, travel on the interstate system should be almost 21 times as safe as travel on older highways, and may save 6,000 lives a year. > >The Bureau study said an additional 2,000 lives may be saved each year because of the reduction of the fatality rate on older highways as they are relieved of traffic by the opening of the interstate system. That emphasises how important it is for us to do more to raise our roads to a higher standard. The State Governments, of course, as far as I can ascertain, spend on roads all the revenue they collect from motor vehicle users. That cannot be said of the Commonwealth Government. The original Federal Aid Roads Act was passed in 1926 and similar acts have been passed since. From 1926 to 30th June 1963, the Commonwealth collected from petrol tax - and latterly from automotive diesel fuel tax - a total of £800,731,000. Over the same period the amounts disbursed to the States amounted to £495,878,000. So, the Commonwealth retained in its Consolidated Revenue during that period not less than £304,853,000. The Treasurer **(Mr. Harold Holt)** mentioned during the last Budget debate that in the current financial year Commonwealth aid road grants would be £58,000,000, and that in addition the Commonwealth would spend £10,000,000 on roads in the Territories and on special State road projects. These sums total £68,000,000. A statement on page 9 of the Estimates of Receipt and Expenditure for 1963-64 shows receipts from the excise on motor spirit and diesel fuel as amounting to £69,600,000. So, even at that stage, £1,600,000 was going into Consolidated Revenue. During 1964-65 the amount allocated to the States will be £65,000,000, with approximately £9,000,000 in addition being spent on roads in the Australian Capital Territory, the Northern Territory and special roads in the States, making a total of £74,000,000. However, as the result of the manner in which petrol consumption is soaring as more vehicles go on to the roads it is clear that the expenditure will be less than the receipts from excise on petroleum products. Expenditure on roads is to go up by £5,000,000 per annum until June 1969, but it still will not catch up with the receipts from the fuel tax. {: .speaker-JOE} ##### Mr Jeff Bate: -- That seems a small amount. {: .speaker-KXI} ##### Mr WEBB: -- The honorable member can answer me when he speaks on this Bill. If the £304,853,000 raised by the Commonwealth from fuel tax and placed in Consolidated Revenue had been used for roads we would not be in the fix that we are in today. At least all the receipts from fuel tax should be earmarked for roads. The Governments of Japan, Sweden, New Zealand and the United States do just that. All of their motor fuel tax revenue is used for road purposes. An outstanding example of a highly organised national roads authority is the United States of America Federal Bureau of Public Roads. Its main function is to administer the distribution of federal aid to the States, but in addition it carries out extensive research on roads. In 1956, the U.S. Government passed the Federal Aid Highway Act which created a Federal Highways Trust Fund into which was to be deposited the receipts from certain federal taxes levied on highway users. I quote again from the " Federal Aid for Highways " at page 16 - >In 1956, when Congress increased the ABC Federal aid and launched the tremendous job of completing the interstate system, it recognised that a special financing plan was needed. To pay for the programme, Congress increased some of the federal highway-user taxes and earmarked them specially to go into a Highway Trust Fund, which would be the source of money for federal highway aid. Thus the programme was put on a self supporting, pay as you build basis. > >The tax structure was modified in 1959 and again in 1961, in order to assure the revenue needed during the next decade. The present tax rales are to be in effect until October 1 1972. Principal revenue source is the motor fuel tax of 4 cents per gallon. There is a tax of 10 cents per lb. on highway vehicle tyres and inner tubes, and of 5 per cents per lb. on retread rubber. There is an annual use tax on heavy vehicles, those over 26,000 lbs. gross weight, of 3 dollars per 1,000 lbs. All of the 10 per cent, tax on the manufacturer's sale price on new trucks, buses and trailers goes into the trust fund. I mention that to show that whereas this Government does not even use all of the fuel tax for road purposes, the United States Government uses, not only all the petrol tax it collects, but in addition the other taxes which I have mentioned. The Federal Aid Highway Act authorised the building of a 41,000 miles network now known as the National System of Interstate and Defence Highways. The Federal Government of the U.S.A. assumed 90 per cent, of the financial responsibility for its construction. But in addition the Federal Government increased its annual assistance for primary and secondary roads. This change in policy was described by the United States Bureau of Public Roads in the following terms - >Prior to 1956, the Federal excise taxes on motor vehicles, motor fuel, and other products closely associated with the use of motor vehicles were considered to bc general excises, having no legal connection with Federal aid for highways. However in enacting the Federal Aid Highway Act 1956 and its companion legislation, the Highway Revenue Act of 1956, Congress abandoned a historic policy > >That policy, of placing revenues from excise taxes on automotive products into the Federal general funds and making appropriations for highways from these general funds, was replaced by a policy of assigning the revenues from specific taxes on highway fuels and automotive products to a segregated highway trust fund to be available for highway appropriations only. The "A.A.A. Federal News Letter", portions of which I have been quoting, then goes on to say - >New Zealand has a National Roads Board which was established by the National Roads Act 1953. It is doing an excellent job of work. > >Under the chairmanship of the Minister for Works, the National Roads Board is an organisation representative of private and commercial vehicle owners, the counties, municipalities, the Ministry of Works and the Transport Department. > >The representative nature- of the Board was adopted to bring to bear on roading matters the widest possible background of knowledge and experience. Although some members are nominated by user organisations and spending authorities, they do not act as delegates for the nominating authorities. Their responsibility is national, not regional, and to the people as a whole who pay the taxes on which the National Roads Fund is based. > >The money in this fund is derived from the total revenue (less collection expenses) from petrol tax (for a brief period there was a diversion of petrol tax), registration and licence fees, heavy traffic fees, mileage tax, tyre tax, and a contribution of £1 million per annum from Consolidated Fund. This shows that the authorities in New Zealand do not limit expenditure on roads to the amount collected from the petrol tax. They use other funds as well. The Australian Government imposes extensive taxes on motor vehicle users. For the year ended 30th June 1963 the customs duty on motor spirit amounted to £8.8 million, excise duty on motor spirit was £60 million, customs and excise duty on diesel fuel £2.6 million, customs duty on imported motor vehicles and parts £11.8 million, sales tax on private motor vehicles £49.3 million, sales tax on commercial vehicles, motor cycles and spare parts for all types of vehicles, including private motor vehicles, £18.1 million, giving a total in Commonwealth taxes from all these sources of £150.6 million. Payments to the States under the Commonwealth Aid Roads Act for the same year amounted to £71.4 million. More than £79 million collected from the road users in that year went into the Consolidated Revenue Fund. The State governments also imposed vehicle taxes, and in that year the State governments raised from these sources £59.2 million. The total of Commonwealth and State taxes was £209.8 million. Although more than £209 million was collected from motor vehicle owners in the twelve months ended 30th June 1963, much less was expended on roads. Labour's view is that an authority should be set up similar to that which is in operation in the U.S.A. It should be an authority in the real sense of the word, not one such as that proposed in this measure. In the interests of defence and development this authority, with the co-operation of the States, should accept the responsibility of planning and financing national highways. These highways should form an integral part of the national transport system. They should not be confined to those that connect mainland capitals in eastern States. Other highways should be considered. For instance, the highway from Darwin to Alice Springs should be extended to Port Augusta. Essential arterial roads in Western Australia and in northern Australia should be designed for defence, for mobility and for the movement of mineral and pastoral products. The suggested authority should plan for all-weather sealed roads capable of carrying heavy traffic in northern Australia and in the north west. While I am referring to the north west it is well to mention that the Geraldton Highway is sealed only as far as Carnarvon, 600 miles from Perth. The Great Northern Highway, which connects with the coast highway at Port Hedland, is not sealed at all. These are examples of our highways in the north-west of Australia. When it is suggested that we should spend more money on roads we always hear the cry: "How are we going to pay for this? " I have already pointed out that a good deal more is taken from road users through taxation than is expended on roads. Not even all the amount collected by way of petrol tax is expended on roads. It should be remembered that bad roads cost the Australian people about £1,000,000 a day. Let me remind honorable members also of the development that will follow new road construction. Such new construction will encourage a volume of traffic which will, over a period, more than pay for the construction. Without such construction development will be slowed up. In the United States of America it is accepted that road construction made possible the increased traffic that made the country richer. The Government of that country did more than use the amount taken from road users by way of taxation; it borrowed for the purpose of providing the necessary capital. In this connection I would like to read an extract from a document produced by the Australian Development Research Foundation, entitled "The Development of Australia- Transport Needs "- >The most urgent need for development in Australia is for more and better construction of both roads and railways. It would seem that a good case could be made for Commonwealth expenditure on strategic highways at least equal to the amount of taxation, import and excise, collected from road users. In the United States, extensive use is made of tax-free bond issues for highways and bridge construction and these bond issues are amortised largely by toll collections. If the Commonwealth were to take over the responsibility for strategic highway construction, consideration should be given to this method of supplementing the taxation already collected from road users so that toll charges as well as taxation of road users could be used for road construction. No other public expenditures are as important for development and defence as the construction of sealed, all-weather roads to give access to the export resources of north and north-western Australia. I do not necessarily agree with all that is contained in that extract. However, it at least emphasises the fact that the authorities in the U.S.A. are prepared to spend more than they receive from the road users in order to bring their roads up to a proper standard in the interests of defence and development of that country. They believe this is a good investment and that it is more than repaid in the long run. I repeat that what is required is a national programme so that all forms of transport can be co-ordinated, instead of competing with one another. This is the only way to reduce our far too heavy transport costs. Water transport is the cheapest form of transport, and the use of ships should be encouraged for long hauls of large tonnages. At present our ports are inefficient, being administered by 26 different authorities. We have little or no control over overseas shipping. Under such burdens how can our transport system be efficient? Railways are the next cheapest form of transport, but they are not used to the full extent. Traffic that should go to the railways is taken by road while railway deficits continue to increase. Rail standardisation, in my view, and, I think, in the view of all honorable members, will help considerably once the capital cities are linked with the 4 ft. 8) in. gauge, but more will have to be done in that direction. Other main lines need standardising and all the railways need modernising. Full use should be made of the railways in suburban passenger traffic to relieve congestion on the roads. If the railways were subsidised to the same extent as the airlines there would be no railway deficits. We hear railways criticised for having deficits. The Australian Transport Advisory Council estimated in 1956-57 that if airlines were to bear all the costs of air services, passenger and freight charges would have to rise by 21 per cent. If a subsidy similar to that enjoyed by airlines were made available to the railways it would more than cover their deficits. Co-ordination of transport is the answer to the problem. The Interstate Commission already provided for in the Constitution should be re-established. It was recommended by the Australian Labour Party's Transport Committee when it tabled its report in this House in 1956 and it was recommended in the report of the Joint *Committee* on Consitutional Review in 1959, but nothing has been done about those reports. I am satisfied, I regret to say, that the transport problem will never be solved within the framework of current Government policy or the philosophy of free enterprise. The traffic crisis focuses our attention on the appalling and inevitable inadequacies of public investment under this Government. Both road and rail investments have been inadequate. Raid modernisation and standardisation has not been sufficient to make up for the years of neglect. Road construction has not kept pace with the unplanned outpouring of cars on to the roads. As a result, the nation is suffering the appalling waste due to economic losses from our under-used railways and from our over-used roads at one and the same time. We pay the price in traffic jams and delays, and in road casualties, too. It does not appear in anybody's balance sheets, but that does not make it any the less real. The sheer facts of congestion have driven experts to believe that public transport is the only answer to easy, quick and efficient movement in our cities. The deterioration of public transport is one of the reasons why the move to private car ownership has received such momentum. If we are going to mak; our cities tolerable places in which to live, a completely new structure of planning has got to be established. Problems have got to be seen as a whole - not in the piecemeal manner envisaged in this piece of legislation. That is why I suggest to the Minister that he get down to the job of doing something to coordinate transport as a whole and, as far as this measure is concerned, at least give the legislation some teeth so that it will be able to do the job that is expected of it. This House should receive copies of reports prepared by the proposed bureau from time to time. Those reports should be perused by all interested bodies. In addition, the Parliament should have the opportunity of referring matters to the bureau. I will leave the matter at that and ask the Minister to give earnest consideration to the matters that I have raised on behalf of the Opposition. {: #subdebate-68-0-s1 .speaker-JOE} ##### Mr JEFF BATE:
Macarthur **.- Mr. Deputy Speaker,** I think the House is indebted to the honorable member for Stirling **(Mr. Webb)** for the statistics which he gave on the road problems in Australia. Anybody who has listened to him will agree that he has spent a good deal of time on them. We understand that he has been a member of one of the transport unions and that he is bringing to the Parliament a knowledge of tran port which is important. We must agree with him when he says that transport in Australia is of immense importance. I understand that transport is responsible for nearly 40 per cent, of our internal costs. Most of the products - they are in the main rural products - which have been responsible for raising our export income to £1,370 million - an increase of £309 million in one year - must be transported to the seaboard and must bear the cost of that carriage. Again, many of our manufactured goods often incur transport costs a number of times in moving from one factory to another. Therefore, anything that has to do with transport is of immense importance when we are thinking of costs and competing with people overseas. We agree with the honorable member for Stirling when he talks about this matter and we must commend him for the statistics which he quoted. They will appear in " Hansard " and will be of great importance to us when we are considering this problem. But we do not agree with the honorable member's arguments. For instance, we do not agree that an immense bureaucratic, centralised, monolithic authority, to use his own words - an authority with full power in every sense of the term - should make the decisions and have control over the work to be done on roads in Australia. {: .speaker-K6X} ##### Mr Coutts: -- He did not say "monolithic ". {: .speaker-JOE} ##### Mr JEFF BATE: -- No, but that is the kind of authority that you would have. The socialistic mind is unable to understand the position. If we were to adopt the honorable member's suggestion we would have in Canberra a large building of 10 or IS storeys, with acres and acres of office space, occupied by persons who would decide what an engineer would do at, for example, Port Hedland, 3000 miles away, or up in Queensland, or in South Australia, or in Victoria. That is the form of centralised control that you get from the Socialists. Although the matter is not set out in exactly that form in the Labour Party's platform, I take it that the honorable member for Stirling was giving us a new look at Labour's policy on transport. He says that the authority he suggests would have full control over planning and designing of roads in Australia. Therefore it would build up a monolithic, bureaucratic, socialised central control. The Bill before the House seeks to do just the opposite to that. We commend the proposal that there shall be a small group comprising a chairman with two part-time helpers at the beginning. These men will call upon road engineers, upon the research organisations in universities and so on for advice. They will call upon fresh minds - not bureaucratic minds but the minds of men who have studied the problem. The honorable member for Stirling says that a bitumen road extends only as far as Carnarvon. I remind honorable members that that would be over a distance of 600 miles, and I do not suppose you would see more than one car an hour if you travelled over the road. Western Australia raided the road funds of the Commonwealth. On some bitumen roads in Western Australia you can travel for hundreds of miles without seeing one car. I repeat that the distance to Carnarvon is 600 miles; yet the honorable member says that the bitumen road extends only as far as Carnarvon. Some time ago we met at Port Hedland a brilliant and noted engineer who was working day and night, endeavouring to evolve a workable system of using local materials for the construction of roads across the millions of acres of that vast country. No other country has the problems that Australia has. We have 2,000 million acres over which to transport enormous quantities of export commodities the price of which probably has dropped a great deal. We may need to produce more than double the quantities we produced in the past in order to get the same money that we then earned. The last published records of the dairy industry show a continuing drop in the price of butter fat over the years, with the exception of this year in which there was a slight increase. The goods that we sell overseas at a lower price attract higher transport costs than goods produced in other countries. In fact, 40 per cent, of the cost of producing these goods is attributable to transport. We agree with the comments of the honorable member for Stirling about the importance of the problem, but we do not agree when it is suggested that the State Governments and the local authorities which are nearest to the work should have the responsibility taken from them. {: .speaker-KXI} ##### Mr Webb: -- We did not say that. {: .speaker-JOE} ##### Mr JEFF BATE: -- Let me remind the House of what Labour envisages. I carefully wrote down what the honorable member said. These are the words he used: " An authority in the real sense of the word ". That is the Socialist approach to such matters. But we will not have any such organisation. We disagree with that proposal. This Bill is designed to establish a small institution which can obtain ideas from the universities and the scientific organisations. Let the university students have a go at this problem. Let them as young members of a brave new world bring forth fresh idea. To do that is more realistic than to set up a huge bureau with authority coming from the top and every member of the staff striving to earn the approval of his boss. We would have only one line of thinking if a bureau such as the Labour Party has suggested were established. Such an organisation would be set up at tremendous cost. At the present time the work is split up amongst some fine road authorities, including the Department of Main Roads in New South Wales. I have in mind, too, the Victorian Country Roads Board and the Queensland Department of Main Roads, which I think were set up before the New South Wales authority. The Main Roads Department of Western Australia was successful in having roads money allocated in accordance with a formula which is based on broad areas as well as population. It seems unfair for one to be able to travel on straight, level roads in South Australia when in some of the other States mountainous areas have been provided with roads at tremendous cost and in flooded areas roads virtually slipped away from under the feet of the engineers while they were being built. The correct approach at this stage of Australia's development is for the local authorities to control the construction of roads with the assistance of a co-ordinating authority. The Labour Parly is jumping ahead when it suggests the establishment in Canberra of an authority which would look after beef roads in the north and other roads in Western Australia. In these areas we have men who are dedicated to their job. The roads problem calls for the use of flesh and brains. It is not a matter of saying: " Here is a sum of £375 million; here is the authority." That is not the way in which to approach the matter. We can cast our minds back to the days when roads in New South Wales were constructed by men using horses and drays and picks and shovels. Those men went out to their gangs slowly on Sunday afternoons and started work early on Monday mornings, working for 5, *5i* or 6 days a week in times of drought, bush fire and flood. The Clyde Mountain road, which has been financed from a fund which was established to provide access roads to the Australian Capital Territory, was built by men who used horses and drays. The people in the country sought jobs with the road gangs. We can recall the days when small shires took over responsibility for a highway every 100 miles. They looked after their part of the road and put all they had into it. The people who did this work were people in the real sense of the word; they were not planners. Of course, it was impossible to nave planners in those days. But we have evolved to the point where we have the grader, the bulldozer and the bitumen road. We have before us the immense problem of handling transport iri the widest country in the world. Australia has an area of 3 million square miles - 2,000 million acres - and many of us in the last eight years, since we started the Ord River exercise, have been all over Australia. Now everybody wants to follow and to see the sights of this country. People in medium priced cars want to put their bed-rolls or tents in the back of the car or in a caravan and go to the farthermost limits of this great place. However, they cannot get to Cape York as they cannot get past Cooktown. There should be a road from Cooktown to the top of the peninsula, going on past Weipa and the Mitchell River. You can get to the north of Western Australia and can drive to Darwin. At Port Hedland you can see Perth cars on the jetty. The people should be able to get to these places. There is no harm in allowing them to go to these places and to wander under their own steam wherever they want to go. This would be one way to develop Australia - by allowing people to travel, to camp under the stars or stay in motels in the dry season when conditions are perfect. At night, the weather is glorious and warm, and is attractive to people. This country is now beginning to open up. People have said that this country is barren and that it is a desert, except for the lush south-eastern fringe, but now we have found oil coming from artesian basins. We are now discovering gas, which carries rich components called, I think, butane, propane and many other names. Those components can be extracted from the gas, mixed with petrol and burnt as fuel for motor cars. But we cannot have access to that gas without roads, which will enable us to bring the products to the great thermal electricity stations and enable us to enjoy a 20 per cent, decrease in costs year after year because of the richness and great thermal heating of those gases. The real riches of Australia are beneath the ground. {: #subdebate-68-0-s2 .speaker-10000} ##### Mr ACTING DEPUTY SPEAKER:
Hon. W. C. Haworth -- Order! The honorable member must get back to the bill dealing with the Commonwealth Bureau of Roads. {: .speaker-JOE} ##### Mr JEFF BATE: -- We cannot have access to these riches without roads. We need a great road system and the Bill now before the House will enable us to have the central group research and planning group research which can bring together the information and supply it to the Commonwealth. The intention of the Bill is to make available to the Commonwealth the information which it must have because the Commonwealth Treasury is involved. If honorable members want any proof of the sincerity of the Government I have only to remind them that under the five year plan the average expenditure on roads each year will be £75 million. Expenditure by a Labour government for roads was about £7 million a year. The last year that the Chifley Government held office its expenditure in this respect was £7 million. I was surprised when the honorable member for Stirling said, if I heard him correctly, that this year a gap of £1.9 million existed between the amount raised in petrol tax and the amount paid out for roads. He said that since petrol tax had been introduced £800 million had been received and that £495 million had been paid out, so in other years there must have been a much larger gap. {: .speaker-KXI} ##### Mr Webb: -- No. {: .speaker-JOE} ##### Mr JEFF BATE: -- If the gap is £1 million this year and since 1926 the total gap has amounted to £300 million, governments of the past of the colour to which the honorable member belongs must have taken into Consolidated Revenue a great amount of the petrol tax. The record of this Government is better than the record of Labour governments. Payments to the States have risen from £69 million to an average of £75 million a year, and are now at £100 million. That is better than the Chifley Government's £7 million. I know that honorable members opposite will say that we now have more cars and are using more petrol, but the figures I have cited represent hard cash. In the last year that the Chifley Government was in office the expenditure on roads was £7 million and it is now an average of £75 million. {: .speaker-KWP} ##### Mr Turnbull: -- £7 million out of £20 million. {: .speaker-JOE} ##### Mr JEFF BATE: -- The honorable member for Mallee said that £7 million of the £20 million received in petrol tax was spent by the Chifley Government on roads in its last year, so the Chifley Government put two-thirds of the money into Consolidated Revenue. The honorable member for Blaxland **(Mr. E. James Harrison)** looks earnestly and worriedly at me because he knows that this is true. This Government gives back over 90 per cent. - nearly 100 per cent, this year - for expenditure on roads, and this is at a time when road building is much more expensive and much more demanding. The honorable member for Stirling says that there are traffic jams on roads in our metropolitan areas. He lauded the American system. What about the traffic jams in America, where people sit for two hours on great road systems? The American Bureau of Public Roads has been operating for 70 years. It has an office of engineering, an office of operations, an office of administration, an office of research, an office of highway safety, an office of planning, and a general council. It is a veritable dream of Parkinson of Parkinson's law fame. In the field regional and divisional officers discharge responsibility for public roads at a local level. A divisional office is located in each state. The tentacles of this enormous Bureau of Public Roads in the United States, costing billions each year, spread to all the States yet there are still traffic jams - much worse traffic jams, I suggest to the honorable member, than there are in Australia. With neurotic Americans involved in those traffic jams, goodness knows what happens when they get out of their cars and sit on the sidewalks, heads in hands, taking powders to try to tranquilise themselves in the awful situation into which they have got. That is the vaunted American situation. The Americans have not solved the problem. As fast as they try to catch up with it the problem eludes them, and more and more motor cars come on to the roads. That is happening in this country also. The approach of this Government to the matter is sound. Something that we heard earlier in the evening shows that what we are doing is economically sound. We are successful and we are prosperous, but this job of roadmaking will confront us to an increasing degree. Of course it is important from the defence point of view. It is important also from the point of view of development, prosperity and reduction of costs. All those factors come into the consideration of the road situation. We ask that this proposal for a small bureau of public roads be given its chance. Here will come into effect the idea, which we have nearly lost in Australia, that there is a big role for private consulting engineers to play. We have great engineering departments with salaried engineers, who take a job for a few years and are then promoted somewhere else. They lose the sense of continued responsibility which is so important in any job. All of the men in our great water works, in our roads departments and in our engineering departments are employed by governments. In Australia there are too few consulting engineers, men with fresh minds who will take on a job and see it through to a finish, whose reputation, chance of existence, and prosperity depend on the completion of a job well done. This proposal supports the idea of consulting engineers. A firm that comes to mind is Gutteridge, Haskins and Davey, which has a very large local authority practice in New South Wales, Queensland, and Victoria, advising on roads, electricity supply and other projects. These are men of the sort who can bring this matter expert advice which is so different from bureaucratic, departmental ideas. Let us try this method, with private enterprise, consulting engineers, and universities bidding against one another, using their students, and employing the equipment that they undoubtedly have. The University of New South Wales and the University of Sydney come to mind, as do the University of New England and universities in other States. They have a great reservoir of brains, skill and equipment for looking at these jobs. Let us use them. Let us call them in. Let us give them tasks, and get them to carry the tasks right through to completion. To me this is a far sighted solution of the problem. It would get away from the old conception of £ huge department in which everybody is trying to get a smile and, perhaps, promotion, from the man at the top. Let us bring in the fresh ideas from the students and the lecturers at the universities who have studied highway engineering and associated problems. This proposal, I believe, offers a great deal. I support the bill. Debate (on motion by **Mr. E.** James Harrison) adjourned. House adjourned at 10.26 p.m. {: .page-start } page 97 {:#debate-69} ### ANSWERS TO QUESTIONS The following answers to questions were circulated: - {:#subdebate-69-0} #### Australian Security Intelligence Organization. (Question No. 89.) {: #subdebate-69-0-s0 .speaker-K8B} ##### Mr Curtin: n asked the Prime Minister, upon notice - {: type="1" start="1"} 0. Has his attention been drawn to an article on page 6 of " Nation " of 7th March in which **Dr. Michael** Kelly said that at the request of Brigadier Spry he had carried on newspaper correspondence concerning the visit of certain Australian doctors to Russia? 1. Did Brigadier Spry make such a request? 2. If so, is it the proper function of the head of the Australian Security Intelligence Organization to act in this way? {: #subdebate-69-0-s1 .speaker-N76} ##### Sir Robert Menzies:
LP -- The answer to the honorable member's questions is as follows: - >It is not the practice to give information which would either confirm or refute allegations of particular activities of the Australian Security Intelligence Organization. {:#subdebate-69-1} #### Papua and New Guinea: Electoral. (Question No. 222.) {: #subdebate-69-1-s0 .speaker-K9M} ##### Mr L R Johnson: son asked the Minister for Territories, upon notice - {: type="1" start="1"} 0. Does the Electoral Ordinance of the Territory of Papua and New Guinea provide that before a candidate can be declared elected he must have an absolute majority of votes? 1. Does this provision mean an absolute majority of primary and preference votes? 2. Are voters required under the Ordinance to indicate their order of preference for candidates? 3. Is a ballot paper classified as informal if it is marked with only a primary vote and shows no other preference? 4. Is it possible in an election in the Territory to have a situation where no candidate receives a majority of votes in the form of either primary or preference votes or a combination of both? 5. If such a situation did occur, would it be obligatory on the electoral officer to declare the election null and void? 6. In which electorates in the recent Territory elections did no candidate receive a majority of votes? {: #subdebate-69-1-s1 .speaker-JOA} ##### Mr Barnes:
CP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. Yes. 1. No. 2. Yes. 3. No. 4. No. 5. and 7. Not applicable. See answer to 5. above. {:#subdebate-69-2} #### Papua and New Guinea: Official Publications. (Question No. 288.) {: #subdebate-69-2-s0 .speaker-6U4} ##### Mr Whitlam:
WERRIWA, NEW SOUTH WALES m asked the Minister for Territories, upon notice - {: type="1" start="1"} 0. Why is the annual volume of the Laws of the Territory of Papua and New Guinea published so many years after die corresponding volume of the Commonwealth Acts? 1. Will the "Hansard" of the House of Assembly of the Territory be published as promptly as the Commonwealth " Hansard "? {: #subdebate-69-2-s1 .speaker-JOA} ##### Mr Barnes:
CP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. The annual volumes of the Laws of the Territory of Papua and New Guinea are published as soon as starling and priming facilities permit. Some years ago due to staffing and printing difficulties the publication of volumes prior to 1960 fell into arrears. It is expected that the printing of these volumes which is being done in Australia will be completed this year. The Administration Printer at Port Moresby was able to undertake the printing of annual volumes for 1961 and subsequent years. The 1961 volume was issued during 1962. However, a heavy legislative programme during 1963 has delayed the printing of the 1962 volume. It is now being bound and is nearing final publication. The 1963 volume will be printed when the 1962 volume is finished. 1. Publication of " Hansard " will be made as promptly as the availability of printing facilities and editorial staff permits. Reports of Legislative Council debates were available within three to six months of the relevant meeting of the Council, depending on the pressure of work on the Administration Printer. lt is not proposed at this stage to publish a daily " Hansard ". {:#subdebate-69-3} #### Papua and New Guinea. (Question No. 295.) {: #subdebate-69-3-s0 .speaker-1V4} ##### Dr J F Cairns:
YARRA, VICTORIA · ALP rns asked the Minister for Territories, upon notice - {: type="1" start="1"} 0. Was an Australian plantation manager recently sentenced to twelve months imprisonment for shooting a plantation labourer in New Guinea? 2, Was there corroborated evidence that the plantation manager stated that he knew the person he fired at was a " bush kanaka "? 3, If so, what evidence, if any, contradicted this corroborated evidence? 1. Has the result of this case created an impression that the killing of a New Guinean by a white person is a matter which can be treated lightly? {: #subdebate-69-3-s1 .speaker-JOA} ##### Mr Barnes:
CP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. Yes. 1. No. The substance of evidence given by one native witness and corroborated by another was that the accused was alleged to have said that he fired at the place where he thought there was a " bush kanaka " stealing copra. 2. Evidence in contradiction from the accused was that the substance of what he said was that he fired at flying foxes who steal copra just like " bush kanakas ". 3. No. The contrary impression would be created as the trial Judge staled in his judgment - "1 have no doubt that he fired at a flying fox which came so low that his bullet came to earth at this distance of 350 yards from where it was fired. His fault was that he thoughtlessly permitted himself to fire with a low trajectory knowing that there could be persons in the general area where the victim was. It was most unlikely that the bullet would have hit anybody, even allowing for its low trajectory, because of the thick belt of rubber trees through which it had to pass. That it should have hit a person in the temple was a million to one chance. But the lethal qualities of bullets are such that it was a crime thoughtlessly to send a bullet in the direction he did." Trade with Asian Countries. (Question No. 297.) {: #subdebate-69-3-s2 .speaker-KDV} ##### Mr Jones:
NEWCASTLE, VICTORIA s asked the Minister for Trade and Industry, upon notice - >What has the Government done in the last five years to encourage trade with Asian countries? {: #subdebate-69-3-s3 .speaker-009MB} ##### Mr McEwen:
CP -- The answer to the honorable member's question is as follows: - >The Government's trade promotion programme has given increasing attention to Asia, particularly Japan, Malaysia and Hong Kong. A rising proportion of total publicity expenditure is being allocated to Asian markets. The Government has simultaneously encouraged greater promotional activity in Asia by Australian exporters. This has been done through such media as the Export Action Television series, special seminars designed to inform exporters about the Japanese market and the wide dissemination to businessmen of printed material describing conditions and prospects in East Asian markets. The response from Australian industry has been good. > >The Government has given special attention to increasing trade with Asian countries through the following measures: - > >Trade Commissioner Service. > >Since 1959, Trade Commissioner posts have been strengthened in Japan, Hong Kong, Philippines, Malaysia and Thailand. A special consultant with wide experience in East Asian commerce was appointed to the Department of Trade and Industry in 1963 to advise on exporting to that area. > >Trade Fairs. > >The Government has sponsored major Australian exhibits in international fairs in Osaka and Tokyo, and assisted Australian exporters to arrange exhibitions in Hong Kong and Malaysia. > >Trade Ships and Missions. > >Two trade ships, the " Straat Banka " to South East Asia, and the " Chandpara " to Pakistan and South East Asia, were sponsored by the Government and assistance was given to the recent visit to South East Asia of the Australian Chambers of Commerce trade ship, the " Centaur ". The Government has, within the last eighteen months, sponsored a foodstuffs mission to Japan and two building material missions to South East Asia. {: type="1" start="4"} 0. Store Promotions. Food and wine festivals and other promotions have been organized in several large stores in Malaysia, Japan and Hong Kong. {: type="1" start="5"} 0. Publications. Industry features which highlight Australian industries are continuously being published in newspapers in South-East Asia. In 1963-64 over 50 such supplements, many of them in local foreign languages, will have appeared in ten countries. A quarterly business journal is produced in Japan and a variety of other trade publications about Australian goods are widely distributed in Asia, again using foreign languages whenever practicable. {: type="1" start="6"} 0. Relations between Governments. The Government has concluded formal trade arrangements with four Asian Governments including Japan, currently Australia's biggest overseas market, and two new agreements are under consideration. Talks are being held with India about prospects for expanding trade both ways and similar talks may be held with other countries. The Government welcomes trade missions from Asian countries and assists them as much as possible. An important gesture towards the trade of some of our Asian neighbours was the recent removal of the import duty on tea. {:#subdebate-69-4} #### Universities. (Question No. 305.) {: #subdebate-69-4-s0 .speaker-YF4} ##### Mr Cross:
BRISBANE. QLD s asked the Prime Minister, upon notice - {: type="1" start="1"} 0. What is the number of (a) full-time, (b) parttime, (c) external and (d) equivalent full-time students in (i) each university and (ii) each Stale in 1964? 1. What is the Commonwealth grant to (a) each university and (b) all the universities in each State for recurrent expenditure in 1964? 2. What is the Commonwealth grant to (a) each university and (b) all the universities in each State for recurrent expenditure in 1964 per (i) equivalent full-time student and (ii) full-time student? {: #subdebate-69-4-s1 .speaker-N76} ##### Sir Robert Menzies:
LP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. The figures for 1964 are not yet available, but the following figures from table 10 of the Australian Universities Commission's second report are estimates of the numbers. {: type="1" start="2"} 0. The assurances to the Commonwealth from the States are such that it seems certain that in 1964 all universities will attract the maximum Commonwealth grant as shown in the third column, part 1, of the first schedule of the Universities financial Assistance) Act, 1963, viz.: Grants to the Australian National University are made on a financial year b;isis and *so* are not comparable with those to the States for their universities. {: type="1" start="3"} 0. These figures cannot yet be calculated though an approximate answer could be derived from the data referred to in (I) and (2). It will bc realised that it could be misleading to draw conclusions about the universities on the basis merely of such figures. Thus, in its second report, the Universities Commission points out the factors it must consider when assessing the universities' likely recurrent requirements: "The rate of development of each of the Australian universities has been different and this difference has been brought about by a combination of many factors, including the agc of the institution, the level of student numbers and their rates of growth, geographical location, the rate of growth of the parent States, and the relationship which exists between the University and the community. In considering the needs of the universities for the 1964-66 triennium, the Commission has used a number of parameters, including student/staff ratios, cost per student, cost per staff member, rates of growth in expenditure on libraries, equipment and maintenance, and the proximity of the university to its maximum practicable size." {:#subdebate-69-5} #### Gold Refining. (Question No. 311.) {: #subdebate-69-5-s0 .speaker-KXI} ##### Mr Webb: b asked the Treasurer, upon notice - {: type="1" start="1"} 0. Are negotiations proceeding with an American company to refine gold normally processed by the Melbourne and Perth Mints? 1. If this work is handed over to a private company, will it mean the closing of the Melbourne and Perth Mints? {: #subdebate-69-5-s1 .speaker-009MC} ##### Mr Harold Holt:
LP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. On 1st July the Reserve Bank of Australia announced that Engelhard Industries Pty. Ltd., of Thomastown, Victoria, would undertake the refining of gold in Melbourne from 1st August, 1964, and that the Melbourne Mint will cease to accept gold for refining from that date. Engelhard Industries, which is understood to be a subsidiary of an American company, will accordingly be specified in the Banking (Gold) Regulations as a company to which gold may be delivered in terms of Section 42 of the Banking Act 1959. 1. The new arrangements relate only to the gold refining activities in Melbourne. Because of the transfer of specialised staff to the Royal Australian Mint in Canberra, the Melbourne Mint found itself unable to continue the refining of gold, but it will continue producing Australian coins for some time te come. There is no intention to change the existing arrangements in relation to gold presented for refining in Perth. {:#subdebate-69-6} #### Population Distribution. (Question No. 321.) {: #subdebate-69-6-s0 .speaker-RK4} ##### Mr Hayden: n asked the Minister for Immigration, upon notice - {: type="1" start="1"} 0. What percentage of the total population has resided in each of the States during each of the past five years? 1. What percentage of the total migrant intake went to each State during each of the past five years? {: #subdebate-69-6-s1 .speaker-KMB} ##### Mr Opperman:
Minister for Immigration · CORIO, VICTORIA · LP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. Percentage population distribution as at 31st December - {: type="1" start="2"} 0. There are no separate statistics released by the Commonwealth Statistician covering the migrant intake for each State. However, the fol lowing information on " State of Disembarkation " may serve as a guide: This table indicates the State or Territory and percentage distribution of passengers who disembarked from the ship or aircraft. Figures do not indicate the full effect on the population of the States as many passengers, particularly overseas air travellers use interstate transport to complete their journey. They do not indicate also subsequent interstate movement. Many assisted migrants disembarking at Melbourne to proceed to the Migrant Reception Centre, Bonegilla, are included in the above, although they may go to employment in other States soon after arrival. {:#subdebate-69-7} #### Royal Australian Navy. (Question No. 322.) {: #subdebate-69-7-s0 .speaker-RK4} ##### Mr Hayden: n asked the Minister for the Navy, upon notice - {: type="1" start="1"} 0. What ships comprise the Royal Australian Navy? 1. When were the ships commissioned? 2. Which ships are now in reserve? 3. Which of those ships in active service are undermanned? 4. What is the full peacetime complement of each of the undermanned ships, and what is the actual complement? {: #subdebate-69-7-s1 .speaker-JWV} ##### Mr Chaney:
Minister for the Navy · PERTH, WESTERN AUSTRALIA · LP -- The answers to the honorable member's questions are - {: type="1" start="1"} 0. 2. and 3. The following are the ships which comprise the Royal Australian Navy. Small craft used to support the ships and ships currently being built are not included. The dates of commissioning given are those of the original commissioning in the R.A.N. 1. No ships in active service are undermanned; H.M.A.S. "Sydney" and H.M.A.S. "Anzac" have special complements in the training role. 2. Not applicable. {:#subdebate-69-8} #### Royal Australian Navy. (Question No. 323.) {: #subdebate-69-8-s0 .speaker-RK4} ##### Mr Hayden: n asked the Minister for the Navy, upon notice - {: type="A" start="I"} 0. What percentage of Royal Australian Navy personnel is engaged on full-time sea-going duties? {: type="1" start="2"} 0. What is the ratio of commissioned and noncommissioned officers to other ranks? 1. How many admirals are there in the Navy? {: #subdebate-69-8-s1 .speaker-JWV} ##### Mr Chaney:
LP y. - The answers to the honorable member's questions are - {: type="1" start="1"} 0. Forty-seven per cent, of Royal Australian Navy personnel are serving full-time sea-going duties. This percentage is slightly lower than that normally desirable owing to the increased shore training commitments inherent in an expanding Navy. For example, personnel who would otherwise be at sea are undergoing shore training in the United Kingdom for submarines, and in the United States of America for the new guided missile destroyers. Furthermore, it should be understood that personnel who might be serving ashore at a particular point of time will have bad sca-going service prior to that particular draft, and will serve at sea again when their turn comes and the requirement arises. {: type="1" start="2"} 0. The ratio of commissioned officers, chief petty officers and petty officers to other ranks is approximately one to three. 1. One vice-admiral, 6 rear-admirals. Preservation of Historical Records. out the Commonwealth in preserving local newspaper files by placing them in local public libraries which are appropriate centres for the collection of source material dealing with the history of their localities. In communities where a library has not yet been established newspaper publishers are urged to transfer their older files to the respective State reference libraries for preservation. As part of the Local Newspaper Project a leaflet has been published and widely distributed. The Australian Advisory Council on Bibliographical Services has also taken an interest in the microfilming of Australian newspapers. The Australian Bibliographical Centre has made a survey of microfilming operations completed or in progress, as a basis for any necessary further action. The results of this survey have been published in "The Australian Library Journal". (Question No. 326.) {: #subdebate-69-8-s2 .speaker-RK4} ##### Mr Hayden: asked the Prime Minister, upon notice - {: type="1" start="1"} 0. ls he able to say whether there is a great volume of valuable and exclusive historical material contained in the early newspaper files of newspaper offices throughout the nation, particularly those in the country centres? 1. If so, will he arrange for the National Library, for the benefit of posterity, to undertake an exhaustive search of these newspapers and have material of historical interest photostated before the newspapers deteriorate beyond the point of usefulness? {: #subdebate-69-8-s3 .speaker-N76} ##### Sir Robert Menzies:
LP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. The importance and volume of historical material preserved in the newspaper files of newspaper offices throughout the country are wellknown. 1. The National Library and the State reference libraries collect and preserve newspaper files and have for some time been concerned to ensure the preservation of files not already in their collections. As a first step co-operation was initiated in 1957 through the Australian Advisory Council on Bibliographical Services, an advisory body of Commonwealth, State and university libraries. As a result the Australian Bibliographical Centre in the National Library carried out a survey and in 1960 published a "Union List of Newspapers in Austraiian Libraries ". This revealed a need for further co-operative effort to cover the local newspapers of smaller circulation which are valuable source material for the writing of local history. On the advice of the Australian Advisory Council on Bibliographical Services, the Australian Bibliographical Centre in the National Library started the Local Newspaper Project in 1962. This is designed to encourage the active interest of local public libraries and local newspaper offices through- {:#subdebate-69-9} #### Shipping. (Question No. 330.) {: #subdebate-69-9-s0 .speaker-KCI} ##### Mr Devine:
EAST SYDNEY, NEW SOUTH WALES e asked the Minister for the Navy, upon notice - {: type="1" start="1"} 0. How many merchant ships were sunk around the Australian coast in World War 11.7 1. How many Australian seamen served on merchant ships in World War II.? 2. What number of these men was (a) killed, and (b) wounded? {: #subdebate-69-9-s1 .speaker-JWV} ##### Mr Chaney:
LP -- The question raised by the honorable member is a matter for the Minister for Shipping and Transport, who has supplied the following answers: - {: type="1" start="1"} 0. Appended are lists of merchant ship casualties in Australian and New Guinea waters. 1. It is not practicable to give details of all Australian seamen who served on mechant ships in the war, but the number of Australian-born seamen serving in the Australian mercantile marine at 30th June, 1940, was 2,722 and at 30th June, 1945, was 2,957. 2. The number of Australian seamen who died following service in all ships (Australian, British and foreign) during the war is as follows: - There is no accurate information available concerning the number of Australian merchant seamen who were wounded. {:#subdebate-69-10} #### Northern Territory. (Question No. 331.) {: #subdebate-69-10-s0 .speaker-JVU} ##### Mr Nelson: n asked the Minister for Terri tories, upon notice - {: type="1" start="1"} 0. Has he written to the Legislative Council of the Northern Territory to the effect that the construction of a highway between Port Augusta, South Australia, and Alice Springs in the Northern Territory is not justified and stating that primary consideration should be given to extending the standard gauge railway from Marree in South Australia to Alice Springs which would be of greater benefit than a road? 1. Has the Government received a reportfrom the Commonwealth Railways Commissioner with respect to a new standard gauge railway from Kingoonya on the east-west line direct to Alice Springs to be located west of the existing northsouth railway? 2. Has the Government received a report recommending the conversion to standard gauge of the existing narrow gauge railway between Marree and Alice Springs? 3. If these reports have been received, what is the Government's decision in respect of them? {: #subdebate-69-10-s1 .speaker-JOA} ##### Mr Barnes:
CP -- The answers to the honorable member's questions are as follows: - {: type="1" start="1"} 0. In the concluding paragraph of a letter to the Legislative Council on the 8th May regarding a resolution requesting action to investigate the possibility of bringing a road between Port Augusta and Alice Springs to the standard of an all-weather highway,I stated - " I am sympathetic to the aim expressed in the resolution and arranged for an investigation to be made as requested by the Legislative Council. However, in the light of all the circumstances, including the need for roads throughout the Northern Territory, and the fact that there is already a rail service between Alice Springs and Port Augusta, it does not appear that at this stage the construction of an all-weather highway between Port Augusta and Alice Springs is justified." The same letter also included - " Proposals for the road under reference were considered by the annual Beef Production and Transport Conference held in Adelaide in 1962. The Conference unanimously resolved to the effect that the primary consideration should be given to the extensions of the standard gauge railway from Marree to Alice Springs as this would confer vastly greater benefits to the pastoral industry, the mining industry and residents generally. This resolution was conveyed by the South Australian Premier to the Prime Minister." 1. No. 2. No. 3. See 2 and 3. {:#subdebate-69-11} #### Literary Censorship. (Question No. 205.) {: #subdebate-69-11-s0 .speaker-RK4} ##### Mr Hayden: n asked the Minister repre senting the Minister for Customs and Excise, upon notice - {: type="1" start="1"} 0. . What are the titles of books presently banned by the Department of Customs and Excise? 1. When were these books banned? 2. What are the titles of books which have been banned by the Department and from which the ban has later been removed? 3. In each case (a) when was the ban applied (b) why was it applied (c) when was it removed and (d) on what grounds was the previous decision reversed? {: #subdebate-69-11-s1 .speaker-JTP} ##### Mr Bury:
LP -- The Minister for Customs and Excise has furnished the following answers to the honorable member's questions - {: type="1" start="1"} 0. The titles of books deemed to be blasphemous, indecent or obscene within the terms of regulation 4a of the Customs (Prohibited Imports) Regulations and which, following examination by the Literature Censorship Board are considered to be of a literary character and of special public interest are published in the following Commonwealth Gazettes - Gazette No. 64 - 1st August 1963. Consolidated List. Gazette No. 75- 12th September 1963. List No 2. Gazette No. 104 - 5th December 1963. List No. 3. Gazette No. 6 - 16th January 1964. List No. 4. Gazette No. 39- 30th April 1964. List No. 5. {: type="1" start="2"} 0. The books concerned have been deemed prohibited imports at various times over a period of thirty to forty years prior to the date of the most recent gazettal. 3 and 4. Certain titles have from time to time, been released from prohibition following further review by either the Literature Censorship Board which undertakes a periodical review of all listed titles, or the Literature Censorship Appeal Board following lodgment of an appeal against the prohibition imposed on a particular book. The grounds for such releases are that at the time of its latest review the publication concerned is not considered either blasphemous, indecent or obscene within the meaning of regulation 4a of the Customs (Prohibited Imports) Regulations. {:#subdebate-69-12} #### Drugs. (Question No. 221.) {: #subdebate-69-12-s0 .speaker-K9M} ##### Mr L R Johnson: son asked the Minister representing the Minister for Health, upon notice - {: type="1" start="1"} 0. Has consideration been given to the advisability of requiring doctors to prescribe drugs by their generic names instead of their brand names? 1. Could substantial savings be effected to the cost of the National Health Scheme if generic names were used and if the least expensive brands were required to be dispensed? 2. Why has the Government declined to institute the use of generic rather than brand names? {: #subdebate-69-12-s1 .speaker-KVR} ##### Mr Swartz:
Minister for Repatriation · DARLING DOWNS, QUEENSLAND · LP -- The Minister for Health has furnished the following replies - {: type="1" start="1"} 0. Yes. 2 and 3. The manner in which prescriptions are written is a matter for the individual medical practitioner. For the information of the honorable member the Federal Council of the Australian Medical Association passed at its meeting in May 1963 a resolution to the effect - "That the Australian Medical Association should encourage the use of official names in prescribing subject to the inalienable right of doctors to indicate the manufacturer of the product they wish to prescribe and subject to the institution of adequate quality controls by the Government." Since then this matter has again been the subject of discussion between the Australian Medical Association and my departmental officers. I would also inform the honorable member that in all official publications relating to the Pharmaceutical Benefits Scheme my Department has placed emphasis on the generic or approved names of pharmaceutical benefits preparations. {:#subdebate-69-13} #### Pensions. (Question No. 238.) {: #subdebate-69-13-s0 .speaker-K9M} ##### Mr L R Johnson: son asked the Minister for Social Services, upon notice - >What relationship, on a percentage and actual basis, has the age pension had to (a) the basic wage and (b) average male earnings each year since this pension was first introduced by the Deakin Government in 1909? {: #subdebate-69-13-s1 .speaker-KZE} ##### Mr Roberton:
Minister for Social Services · RIVERINA, NEW SOUTH WALES · CP -- The answer to the honorable member's question is as follows: - >Figures for the Commonwealth basic wage (six capital cities) were not compiled for the years prior to 1923 and figures for the average weekly earnings per employed male unit were not compiled prior to the year 1941-42. Since these years the information sought is as follows: - {:#subdebate-69-14} #### Social Services. (Question No. 282.) {: #subdebate-69-14-s0 .speaker-KXI} ##### Mr Webb: b asked the Minister for Social Services, upon notice - >In cases where the children of widows and age and invalid pensioners are full-time students, will he consider continuing the payment of allowances in respect of these children up to age 21? {: #subdebate-69-14-s1 .speaker-KZE} ##### Mr Roberton:
CP -- The answer to the honorable member's questions is as follows - >An extension of the existing payments for student children of widow, invalid and permanently incapacitated age pensioners will be considered when the whole field of social services is reviewed in connection with the preparation of the Budget. Social Services. (Question No. 263.) {: #subdebate-69-14-s2 .speaker-6V4} ##### Mr Daly:
GRAYNDLER, NEW SOUTH WALES y asked the Minister for Social Services, upon notice - {: type="1" start="1"} 0. How many applications for endowment as full-time students have been received in respect of teachers' college trainees in (a) each State and (b) the Commonwealth? 1. How many have been (a) approved and (b) rejected? {: #subdebate-69-14-s3 .speaker-KZE} ##### Mr Roberton:
CP -- The answer to the honorable members question is as follows - >Separate statistics on which to base an answer to the question have not been maintained, and the information could only be obtained by an examination of the many thousands of claims received and determined to date. This would involve an undue amount of work which could not be justified. {:#subdebate-69-15} #### Eggs. (Question No. 303.) {: #subdebate-69-15-s0 .speaker-JOO} ##### Mr Beaton:
BENDIGO, VICTORIA n asked the Minister for Primary Industry, upon notice - {: type="1" start="1"} 0. Has the Council of Egg Marketing Authorities of Australia endorsed draft legislation designed to implement its plan for the stabilisation of the egg industry of Australia? 1. If so, when will this legislation be introduced? {: #subdebate-69-15-s1 .speaker-JLR} ##### Mr Adermann:
CP -- The answers to the honorable member's questions are as follows - {: type="1" start="1"} 0. Last October the Commonwealth Government agreed to have draft legislation prepared to implement the egg industry stabilisation plan which had been submitted by the Council of Egg Marketing Authorities of Australia. The draft legislation was prepared and forwarded to State Ministers for Agriculture for consideration by their Governments. The Commonwealth Government undertook to place the draft legislation before the Commonwealth Parliament, if all the States approved of the draft legislation. The provisions of the draft legislation have been explained to the Council of Egg Marketing Authorities of Australia and the Council has endorsed them. 1. As I pointed out in 1. above the draft legislation will be submitted to the Commonwealth Parliament only after all State Governments have approved. The position of the Sates in this respect is that general approval has been obtained from all States except South Australia and Tasmania. The Tasmanian Government is waiting on the decision of the South Australian Government before considering the draft legislation. The South Australian Government has advised that it will support the draft legislation if it is approved by a poll of producers in South Australia. {:#subdebate-69-16} #### Commonwealth Film Laboratory. (Question No. 313.) {: #subdebate-69-16-s0 .speaker-1V4} ##### Dr J F Cairns:
YARRA, VICTORIA · ALP rns asked the Minister for the Interior, upon notice - {: type="1" start="1"} 0. Was an announcement made that it was intended to close the Commonwealth Film Laboratory in Victoria Street, Carlton, in June 1964? 1. Was the laboratory officially closed on 26th February 1964? 2. If the position is as stated, why was the closure made so far ahead of the intended date? 3. Is th_- Laboratory to be transferred to a building about fifteen miles from Sydney in which it can remain for only about two years, and is it then intended to transfer it to a building about eight miles from Sydney? 4. If so, why is it necessary to make these changes in the location of the Laboratory? 5. Have suitable arrangements been made for the employment of all members of the staff of the Laboratory at the new locations or elsewhere? 6. If so, what arrangement has been made in respect of each of the staff members? {: #subdebate-69-16-s1 .speaker-BU4} ##### Mr Anthony:
Minister for the Interior · RICHMOND, NEW SOUTH WALES · CP -- The answers to the honorable member's questions are as follows - {: type="1" start="1"} 0. The staff of the Commonwealth Film Unit's laboratory in Victoria Street, Carlton, v/as advised earlier this year that it was proposed to transfer the laboratory from Melbourne to Sydney and that it was expected that the transfer could be effected about June 1964, although it now appears that it will be somewhat later. 1. No. About that date, the staff of the laboratory was advised that operations would be tapered off gradually to enable a smooth transfer when the Sydney premises were ready for occupation. 2. See answer to 2. 3. The laboratory is to be transferred initially to rented premises in Chatswood, about six miles from the centre of Sydney, and within easy reach of the Commonwealth Film Unit headquarters at Lindfield. The intention is to operate the laboratory at Chatswood until such time as a permanent laboratory can be erected as part of the Film Unit headquarters at Lindfield. 4. The transfer of the laboratory from Melbourne to Sydney is being effected in the interests of efficiency, economy and quality of output. It will enable more effective supervision of processing and printing, will eliminate delays and expenditure on freight and telephone charges inevitable with the separation of the laboratory from unit headquarters and will eventually provide properly designed premises for the laboratory and its staff. 6 and 7. A new establishment to operate the laboratory when it is transferred to Sydney will be sought from the Public Service Board. All members of the present staff will be eligible to apply for the positions on the new establishment. Every effort will be made to find positions in other branches of the Commonwealth Service in Melbourne for those who are not accommodated *on* the new establishment, either because of unwillingness to transfer to Sydney for other reasons. Canberra Housing. (Question 319.) {: #subdebate-69-16-s2 .speaker-JWX} ##### Mr J R Fraser:
ALP ser asked the Minister for the Interior, upon notice - {: type="1" start="1"} 0. Were members of the Defence group who transferred to Canberra in 1963 given assurances that houses allotted to them would be available for purchase at replacement cost less allowances for depreciation and obsolescence, that no charge would be made for the land on which the houses stood, and that the sale of residential leases applied only to choice blocks reserved for sale by auction? 1. If these assurances were given to those transferring in 1963, will he take action to ensure these promises are honoured? 2. Will he ensure that, in future, all departmental personnel transferred to Canberra are informed fully of all conditions regarding housing in Canberra? 3. Did the Department of the Interior, early in 1963 and in the knowledge of a forthcoming change in policy on valuations of Government homes for sale to tennants, delay consideration of applications for valuation or the processing of applications until the changed procedures had been brought into operation? 4. If the delay was not deliberately caused, why did an interval of several months elapse between the time valuers submitted valuations to the Department and the time valuations were received by prospective purchasers? {: #subdebate-69-16-s3 .speaker-BU4} ##### Mr Anthony:
CP -- The answers to the honorable member's questions are as follows - l and 2. Members of the Defence group who were transferred to Canberra in 1963 were informed of the existing conditions under which the houses allotted to them were available for sale or rental. No assurances were given or could bc given that such conditions would remain unchanged for an unlimited period. As you know, conditions for sale of houses have changed from time to time, even during the past five years. Those 1963 transferees who elected during the first four or five months to buy their houses were able to purchase on current terms. These terms were then changed, not all to the detriment of the purchaser. For example, the deposit was reduced from 10 per cent, to 5 per cent, which made it possible for greater numbers of people to be able to purchase their own houses. The current condi tions of sale of Government cottages to tenants who wish to buy them are most favorable and include the following terms - {: type="a" start="a"} 0. a deposit of 5 per cent, on the total purchase price only, with no limit on the outstanding amount for which a mortgage would be given; 1. interest at 4$ per cent, per annum on the outstanding amount covered by the mortgage; 2. repayment over any period up to 45 years; 3. that the sale price of houses will not exceed its market value. {: type="1" start="3"} 0. Yes. This has always been, and will continue to be the practice. 1. and 5. No. Policy in this matter was not under review early in 1963. Delays in offers of sale which occurred prior to September 1963 when the new policy was announced were unavoidable. They were due to acute shortages of staff in the Valuation Section of the Taxation Branch of the Department of the Treasury, and in the Housing Branch of the Department of the Interior, coupled with a considerable increase in the number of tenants seeking valuations, possibly because of the attractiveness of the terms. {:#subdebate-69-17} #### Social Services. (Question No. 327.) {: #subdebate-69-17-s0 .speaker-K9M} ##### Mr L R Johnson: son asked the Minister for Social Services, upon notice - {: type="1" start="1"} 0. Did he stale, when replying to representations about trainee teachers who have been denied endowment as full-time students, that full-time student endowment is assessed on the merits of each individual application? 1. Does he mean that some student teachers may bc eligible depending on financial circumstances, or is it intended that they should alf be excluded from the benefit by invoking the definition of a full-time student as provided in the enabling legislation? {: #subdebate-69-17-s1 .speaker-KZE} ##### Mr Roberton:
CP -- The answers to the honorable member's questions are as follows - {: type="1" start="1"} 0. All cases arc examined on their merits and having regard to the provisions of the Social Services Act. 1. Under the Act, student endowment is payable in respect of students over the agc of 16 years but under 21 years who are receiving full-time education at a school, college or university and who are not in employment. Students who are receiving fulltime education, other than secondary education, in pursuance of a training agreement with another person to remain or engage in employment on completion of their studies, and who receive a wage, salary or allowance from that other person, are regarded under the Act as being in employment. Student endowment is therefore not payable in respect of such children. All claims for student endowment are closely examined to see whether the child is a party to a training agreement with another person and, if so, whether he receives payment from that other person. A trainee teacher who is not subject to these conditions may qualify as a student child for endowment purposes. Not all trainee teachers are parties to a training agreement whilst others are not in respect of payments.

Cite as: Australia, House of Representatives, Debates, 11 August 1964, viewed 22 October 2017, <http://historichansard.net/hofreps/1964/19640811_reps_25_hor43/>.

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