House of Representatives
16 August 1966

25th Parliament · 1st Session

  1. House of Representatives
  2. 25th Parliament
  3. 1966

Mr. SPEAKER (Hon. Sir John McLeay) took the chair at 3 p.m., and read prayers.

page 3

DEATH OF JOHN SIMON COCKLE, M.P

Mr HAROLD HOLT:
Prime Minister · Higgins · LP

– Mr. Speaker, all members of the Parliament will have been saddened to learn early this month of the death of one of our colleagues, John Cockle. John had been in the Parliament since 1961 and had, I think, made a friend of every member of the Parliament by his obvious sincerity and the conscientious devotion he brought to his duties in this place. Some of us had known him for many years before he entered the Parliament, because he had been a prominent figure in the shipping industry in New South Wales and indeed in Australia generally. We felt that his election to the Parliament would bring many useful contri butions from him, particularly in the field of work in which he had such a useful specialised knowledge. And so it proved. He was not with us for very many years and his untimely death has robbed us of a colleague whom we had come to respect and for whom we had developed a regard and affection. He was a man who possessed a high sense of public duty and of service. From the time he came into the Parliament, he devoted himself to the duties of his representation. He became a member of the Printing Committee and of the Joint Committee of Public Accounts. He had shown his firm intention to give national service by his military service in the Pacific area in the Second World War with the Australian Port Operating Company.

He was one of those men who build influence through the respect that develops for them. I have no doubt that, had he been able to continue, as his years might have suggested he would, for a much longer period in the service of the Parliament, he would have become one of those influential members who gain in strength by the force of character that registers with their colleagues regardless of the side of the House on which they sit. So we mourn him as a friend and as a valued colleague, and we extend our deepest sympathy to Mrs. Cockle and to members of the family. I move -

That this House expresses its deep regret at the death on 3rd August 1966 of John Simon Cockle, a member of this House for the Division of Warringah, places on record its appreciation of his meritorious public service and tenders its profound sympathy to his widow and family in their bereavement.

Mr CALWELL:
Leader of the Opposition · Melbourne

– The late Mr. Cockle was a quiet, unobtrusive man of considerable, yet hidden, ability. He did not speak much of his achievements. In fact, I did not hear him speak at all of anything that could have been regarded as a tribute to himself for anything he had ever done in peace or war. He sought to serve this House and through this House the people of Australia. Of course, he sought to serve his electors with devotion and enthusiasm. Wherever he had the opportunity to serve, he did so. Unfortunately, before he was very long in this House he became afflicted with the illness that ultimately resulted in his death. However, despite his troubles and despite his illness he always put up a brave front. He sought at all times to do the best he could and I never once heard him complain about his illness or his inability to do the things he wanted to do. He never spoke about himself unless he was asked about himself. I join with the Prime Minister (Mr. Harold Holt) in extending sympathy on behalf of the Opposition to his widow and to his family. I hope that time will assuage the grief they so naturally feel in their moment of desolation.

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

– I wish to associate myself and my colleagues of the Australian Country Party with the motion proposed by the Prime Minister (Mr. Harold Holt) and supported by the Leader of the Opposition (Mr. Calwell). Mr. Cockle, who was only five years in this House, brought with him the atmosphere of a good Australian who was doing a good job wherever he had a job to do. He had served his country well in war. He served industry. He brought into the House a deep knowledge of shipping matters and he certainly devoted himself industriously and usefully to the work of the Parliament and, as the Leader of the Opposition said, to the requirements of his constituents. It is a matter of great sadness for us all that Mr. Cockle should have been taken from his family and from this Parliament at so early an age. He was a man of distinct promise who, if left longer in this House I feel sure would have become even more highly respected and, as the Prime Minister said, an influential member of the Parliament. It is a useful thing that members carry with them into the House some specialised knowledge, and Mr. Cockle did bring from his association with shipping a specialised knowledge of this highly important industry. I join in expressing the deepest sympathy of myself and my colleagues to Mrs. Cockle and her son and two daughters.

Mr COPE:
Watson

– I wish to associate myself with this motion of regret and I endorse the eloquent remarks of the Prime Minister (Mr. Harold Holt), the Minister for Trade and Industry (Mr. McEwen) and the Leader of the Opposition (Mr. Calwell) regarding the memory of the late Jack Cockle. I knew Jack when he was an alderman of the Sydney City Council. Through my association with him on the Joint Committee of Public Accounts I grew to like him very much because of his genial personality and his rare attribute of making friends easily, despite whether they were members of the Australian Labour Party, the Liberal Party or of the Australian Country Party. I was present at his funeral service which, I might state, was largely attended. Among those present were ministers of the Cabinet, members of the Government parties and members of the Opposition. I was honoured to represent the Leader of the Opposition and was accompanied by the honorable member for Barton (Mr. Reynolds) and by Senator Fitzgerald who represented the Public Accounts Committee. It was interesting to notice in the assembly trade union officials who were great adversaries of Jack Cockle over the years. They respected his sincerity and liked his personality. I offer to Mrs. Cockle and her family my deepest regret.

Mr CLEAVER:
Swan

- Mr. Speaker, the Prime Minister (Mr. Harold Holt) and the honorable member for Watson (Mr. Cope) both have referred to Mr. Cockle’s service on the Public Accounts Committee of this Parliament. I would like to associate myself with the honorable member for Watson, who is Vice-Chairman of the Committee, in paying our short but genuine tribute to a man who was an esteemed colleague of ours on the Committee. Mr, Cockle was proud to follow as the representative of Warringah Professor Annand Bland who, over the years, made such a significant contribution to the work of the Public Accounts Committee. Our late colleague derived great satisfaction from his involvement in the responsibilities of the Committee’s programme. No matter where the Committee travelled and regardless of the volume of research required of him or the long hours applied to the taking of evidence in the course of the Committee’s work, our friend was intensely loyal to these responsibilities. He was always bright and cheerful and was scrupulously fair as he engaged himself in the interrogation of public servants and others in the process of the work that was placed in his hands. So we say today that his contribution as a member of the Committee was indeed valuable, Sir.

To me personally, Jack Cockle was a friend. The distance between Sydney and Perth was so easily spanned as our friendship developed in recent years. We visited each other in our homes and we shared our problems, as many do, over the telephone. Here in Canberra, in a place in which, as all of us are aware, responsibilities and personal ambitions so often affect relationships between colleagues, we enjoyed each other’s company. It seemed to me most appropriate, Mr. Speaker, that when so many friends gathered to pay their last respects to John Cockle, the minister conducted a service of thanksgiving for his life and for his contribution, in so many practical ways, to the wellbeing of the community that had elected him to serve and to lead. This enhances the words that we would use today when we endeavour to pay our respects.

In conclusion, Mr. Speaker, 1 recall that Henry Drummond, in speaking of the immeasurable influence of the strong hand of a friend, used words which, I suggest, will never fail to inspire. They were these -

There are some men and women in whose company we are always at our best. While with them, we cannot think mean thoughts or speak ungenerous words. All the best stops in our nature are drawn out by their fellowship and we find music in our souls that was never there before.

For my part, I believe that I am a better man for having known Jack Cockle. I shall miss his friendship, as will so many others in this House. I join in this genuine tribute today to honour the memory of one who was so keen to give of his best. I gladly associate myself with the sincere expression of sympathy to his wife and family.

Mr BENSON:
Batman

- Mr. Speaker, I wish to endorse all that the previous speakers have said about Jack Cockle and to associate myself with the tributes that have been paid to his memory this afternoon. I hope that these tributes at his sad passing will bring a little comfort to his wife and family. Jack Cockle was well respected because he respected his fellow men. I had the pleasure of getting to know him first during the war when he served with the Army on a naval landing ship. It was his job to get cargo and supplies ashore at newly established beachheads. This he did well. It was the knowledge of stevedoring gained during the war that he put to good use in later years when, in industry, he was in a position that required a real understanding of stevedoring matters. He gained that understanding the hard way.

During the days of peace I knew him again when he became Secretary of the Australasian Steamship Owners Federation. I served with him for some time in that field. He was also Secretary of the Company of Master Mariners. If I may use a little phrase of Joseph Conrad’s, he was trustworthiness personified. He had a background of the sea. He lived for many years in Coffs Harbour, where his father was the harbour master. He thought greatly of men of the sea. Let me sum up my feelings for Jack Cockle in the words of a ship master who after battle in the year 1633, said this of one of his shipmates -

We that survive, perchance, may end our days in some employment meriting no praise. He has outlived this fear and bis brave end will ever be an honour to his friends.

Mr McMAHON:
Treasurer · Lowe · LP

– I knew the late John Cockle for very many years not only as a member of the Parliament and as a member of the Executive of the Liberal Party in New South Wales but also as a family man. I also knew him because of business connections that I had with him. His great, love was the sea and the waterfront. As has been said already, during the Second World War he was a member of the Australian Port Operating Company in the Pacific theatre. Many of us know of the contributions that he made to the Parliamentary Liberal Party’s Industrial Committee and to debates in this House whenever problems of the waterfront were being discussed. He was an inexhaustible fund of information for me when I had to handle the problems of the waterfront. He was liked by members of the Waterside Workers Federation because he was a sincere and honest man. He spoke their language. They respected him. They knew that he held nothing back from them. Although they did not always take his advice, they always respected what he said. In his electorate, no man could have done more. I am sure that all his constituents will regret his passing.

If you look at the record, Mr. Speaker, you will see that he participated in all kinds of activities. No matter what the movement was - whether it was the Parents and Citizens Association or the Boy Scouts Association - John Cockle was always ready to play a part. He was a devoted family man. No man could have done more for his family or have had a more devoted family life than he had. In particular, I say to his wife and family that I deeply regret the loss of him and that we members of this House - no matter on which side we are - are very sorry to lose him as a companion and a friend. We express our deepest sympathy to his wife and his children.

Mr WENTWORTH:
Mackellar

– I wish to associate myself with this motion. The tributes to Jack Cockle are coming from both sides of this House because he was liked and respected on both sides. As his nearest neighbour electorally, I can say that he was liked and respected in his electorate. From Manly across to Mosman, everybody, irrespective of political beliefs, felt that he had a friend in John Cockle. In the House this afternoon we have heard something said of his services as an alderman, in the Army, in the transport field and as a member of the Executive of the Liberal Party in New South Wales. This is a wide spectrum of service outside this House. Inside this House he served on the Public Accounts Committee and in other ways which are not always publicly apparent. For instance, he was Secretary of the Government Members Transport Committee and the Committee against Communism. In many ways he showed that he was here because he wanted to further the ideas and ideals in which he believed. He was a man who wanted to do a job for his country and he gave of himself unsparingly in thaI task. I desire to be associated - and I know that other members, all of whom may not speak this afternoon, also desire to be associated - most strongly with the motion that has been so ably moved.

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

page 6

DEATH OF THE RIGHT HONORABLE SIR WILLIAM SPOONER, K.C.M.G., M.M

Mr HAROLD HOLT:
Prime Minister · Higgins · LP

– As honorable members . are aware, the death occurred during the recess of . a very distinguished former member of this Parliament in the person of Sir William Spooner. Sir William had been a member of the Senate for 16 years from 1949 until 196S. lt can be fairly said of him that he was one of the great Australians of his lifetime. I intend it as a- compliment - and of course, it is recognised as a compliment in this place - when I say of him that he was a politician’s politician. He was well known and respected by all of us who came in contact with him in the course of his parliamentary career. He was not such a spectacular figure, perhaps, in the eyes of the public, although he was prominent both throughout his political service and for many years before he came into this Parliament. However, it is in the strength of regard and respect that everybody felt for him in the two Houses of this Parliament that I believe the greatest tribute to his service is to be found.

The record of his lifetime of service is impressive in its mere recital. He fought with the Australian forces in the First World War and his dedication to the nation he loved was reflected throughout his long period as a member of the Cabinet and, finally, as Leader of the Government in the Senate for several years. In the Australian Imperial Force, in which he enlisted in 19 IS, he was wounded in France and he won the Military Medal. He entered the Parliament in 1949 and - a rare experience for a parliamentarian - immediately entered the Cabinet and in a senior position. But before being elected a senator for New South Wales he had played a very prominent part in the organisation of the Liberal Party. Indeed, he was the foundation president of the New South Wales division of that Party. He was the first honorary Federal Treasurer, a post he occupied from October 1946 to August 1949. Amongst his many ministerial duties, he was Minister for Social Services from December 1949 to May 1951 - this was the first portfolio he held - and for a period he was Minister in charge of War Service Homes. He was Minister for National Development from 1951 until 1964. He led the Government in the Senate from 1959 to 1964. He retired from the Parliament in 1965. The highlights of his outstanding parliamentary career include his attendance at the Commonwealth Financial and Economic Conference in London in 1952. He acted as Minister for Trade and Customs from September 1954 to January 1955. He served as Deputy Leader of the Government in the Senate from 1956 to 1959. He was Vice-President of the Executive Council. He served on the Senate Standing Orders Committee. He was a member of the Australian delegation to the Commonwealth Parliamentary Association Conference held in Canberra in 1959. During 1960 he visited Japan, the United Kingdom, France, the United States of America and Canada for discussions on atomic energy and other matters of developmental interest in Australia. For a period in 1962 he was Acting Prime Minister during the absence overseas of Sir Robert Menzies.

That impressive list speaks for itself, lt underlines the energies and abilities of Sir William Spooner and the recognition by his leader and his colleagues of the contribution that he could make in so many important areas of government. He will be remembered best no doubt for his work as Minister for National Development. Much of his work in this portfolio was pioneering work. He administered the portfolio capably and successfully for 13 years. In that time he laid the foundation for much of the progress that we have experienced over recent years and which we are seeing today in the field of national development. The policies which he implemented and directed with such vigour and enthusiasm were largely responsible for the era which is opening up for us in the exciting new mineral discoveries. I am sure that every Minister who sat in the Cabinet with Sir William will agree that he was one of the most influential members of the Cabinet. He was a wise counsellor. He had a cool and cairn reaction to the problems of government.

Sir William was devoted to the Senate as an institution. I saw much of him in my capacity as Leader of the House because we would need to negotiate from time to time on the business in the two Houses. No chamber had a more determined champion of its rights than Sir William demonstrated himself to be in relation to the Senate, which he represented with such ability.

Those of us who came in close contact with him, as many of us in this Parliament did, knew what a friendly man he was. Although he was a vigorous advocate for his own principles and his own side of politics he bore no resentment or rancour towards his political opponents. He enjoyed a warm friendship with members of the Opposition, as I am sure the Leader of the Opposition will agree. I recall him warmly as one whom I got to know closely over the years. We travelled together on one occasion for nine days through Western Australia examining developmental potentialities and projects in that great State. Although he was much older than I it was typical of the conscientious devotion that he brought to his tasks that he took on his quite arduous and exacting period of exploration and examination in order to equip himself thoroughly for the duties of his office. There was a strength of character in his makeup which reflected itself in the leadership he gave to the Government in the Senate and in the strength of his advocacy for the Senate itself. We found him a very able negotiator for the Government in some of the transactions which he was called upon to undertake.

In the political field, he was not only active in the formation of the Liberal Party but he had so firm a grasp of Liberal principles that he became one of the moulders of the Party and one of the driving forces in its development and growing strength.

This was one of the great Australians of our day, a man whose service to Australia probably can be more appropriately and fittingly recognised in the two Houses of this Parliament than anywhere else. It is with a deep feeling of sincere gratitude for the life of Sir William Spooner and his contribution to the national welfare that I shall shortly be moving before the House a motion which I believe appropriate to this occasion.

I cannot conclude without paying tribute also to the wonderful woman who was his devoted companion and who brought so much happiness to him during their lifetime together. To Lady Spooner and the family he loved so well, deep sympathy goes out from all members of this Parliament. Here is a life to be noted, a life in which we as parliamentarians can take pride because of the contribution a great parliamentarian has made to the progress and strength of his country. I move -

That this House expresses its deep regret at the death on 15th July 1966 of the Rt. Hon. Sir William Henry Spooner, K.C.M.G., M.M., a Senator for the State of New South Wales from 1949 to 196S, a Minister of the Crown and Leader of the Government in the Senate, 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

– The Opposition associates itself with the remarks of the Prime Minister (Mr. Harold Holt) in paying tribute to the memory of the late Sir William Spooner. Sir William Spooner came to the Senate of this Parliament as a Minister. Apart from the Ministers of the first Parliament of the Commonwealth, not many people have entered either the House of Representatives or the Senate as Ministers. I know of no other instance in the history of the Senate and at the moment I can recall only two members of the House of Representatives who entered as Ministers.

Sir William Spooner was a kindly, likeable man. On occasions he could be very forthright, and he was not easily persuaded to change his point of view, but he exuded friendship and goodwill outside the political sphere. Inside that sphere, he devoted himself with very great energy and much ability to whatever task was allotted to him. He was not in this Parliament when the Snowy Mountains Hydro-electric Authority was created. He did not become the Minister for National Development until he had served for some time in this Parliament, but when he did become the Minister for National Development he addressed himself with very great energy and enthusiasm to the completion of the Snowy Mountains Authority undertaking. If I could interrupt myself, 1 would say that he almost came to believe that he himself was the author of the whole scheme, so hard did he work for it and so enthusiastically did he undertake every responsibility in connection with it.

When Sir William retired there were feelings of regret on this side of the House. Perhaps at that time he knew that he had an illness that was sapping his energies; perhaps he wanted to lay down the burden after 13 long years of ministerial office. Thirteen years is a long time in the life of any man. Whatever the reason, he left this Parliament, ultimately, within a very short lime of resigning as a minister with the respect and kindest regard of every member in both Houses who was privileged to know him and, perhaps, understand him. He was not a man who readily gave his confidence or sought any commendation for anything he had done. What task he was allotted he performed with great devotion, and merit was its own reward to him. He certainly left the Parliament with a great deal of merit to his credit.

It does not happen often in the lifetime of a nation that two brothers are destined to serve in the Parliament, one in one House and one in another, and both be Ministers, but it did so happen in the case of the Spooner family. The late Honorable Eric Spooner came into this House as member for Robertson in 1940 and was defeated in 1943. He was for a time a Minister, and a good Minister. Prior to coming to this Parliament he served for a very long time in the New South Wales Parliament in which he was a most influential figure. We not only grew to know Sir William Spooner but we also became acquainted with his wife and family. He leaves a doctor son and two daughters all of whom are married and all of whom have children. The Opposition desires to extend to them its deepest sympathy in their great travail. Sir William Spooner was a devoted husband, father and grandfather, and the love he gave he received back in full measure. On behalf of my colleagues I express the hope that time will help the Spooner family to heal their grief and that the knowledge that they have the sympathy of so many friends on both sides of politics will help them, as time passes, to reconcile themselves to their irreparable loss.

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

– L desire to associate myself and my colleagues of the Australian Country Party with the motion of condolence in respect of the late Senator Sir William Spooner. Many of us in the House had the privilege of his friendship over the years. Those of us who served with him in the Cabinet were, of course, thrown into very close association with him, and to be in close association with Bill Spooner was to grow to like and respect him for his solid worth and his sagacity as an adviser. Not the least of his qualities was his single minded devotion to whatever task he had in hand, lt is true that he did give everything in him to the work under his administration in relation to the great Snowy Mountains hydro-electric scheme. In his youth he set out to serve his country. I believe he was not 18 years of age when he enlisted in the First Australian Imperial Force in which he served with distinction and was awarded a Military Medal for valour. He served later in the Australian Flying Corps in France. He returned after his war service, still a young man, to become quite quickly an influential man in business circles. He was an accountant of great distinction and one who was in close association with the commercial community, particularly of Sydney, but also over a much wider area of Australia.

It was against the background of these records that he devoted himself more closely to politics and, as the Prime Minister (Mr. Harold Holt) has said, became the first New South Wales President of the Liberal Party of Australia. On entry into the Senate he had the unique distinction of becoming a Cabinet Minister before he took his seat in the Senate. That was a very rare distinction and one to which he was certainly entitled when we view in retrospect the worth of his services. This made Sir William Spooner, by any comparison, a notable Australian, a worthy Australian, a highly respected Australian and, certainly, a very influential man. He was a man who brought sound commonsense to any problem, who did not hasten to make up his mind but who, when he had made up his mind, knew why he had made it up and was not easily changed from his course. This is a quality of character to be respected.

He served in the great office of Minister for National Development at a time when events, which he helped to shape, have proved it to have been a period of greatest development. I believe that it was the period of greatest development in our experience in this country. His interests were very wide. He found himself responsible for war service homes and devoted himself to that task. He was responsible for the administration of the Atomic Energy Commission. He grasped the problems and handled that situation. Wherever he found himself carrying a responsibility he became a figure of real significance in the councils of the nation. It is very appropriate that today we should be recording this and remembering that we have lost a man who was very distinguished in this country, that we have had the benefit of serving with him and, many of us, the benefit of close friendship with him. I speak for myself and my wife when I say that we extend our deepest sympathy to Lady Spooner, whom we came greatly to like and to respect, and extend our very deep sympathy to his son and his two daughters.

Mr McMAHON:
Treasurer · Lowe · LP

– Mr. Speaker, Bill Spooner was a friend of mine for very many years. I knew him long before I came into Parliament or, for that matter, thought of coming into Parliament. If there is one phrase with which I can describe him, it is this: He was a good bloke. I do not know of anyone who was a better friend to those who needed help than the tate Senator Spooner. It did not matter how great or how small the problem might be, one could go to him, ask for his advice and help, and be quite certain that he would do all in his capacity to help. In Cabinet he was a businessman and he brought a businessman’s intelligence and application to the problems of Cabinet during the whole time that I was there. I can well remember the many occasions while sitting almost directly opposite him in Cabinet when some major problem arose. He would have a hurried conversation with the Minister for Trade and Industry (Mr. McEwen) and then would tell us what he thought. We could be quite certain that what he thought was the essence of a businessman’s thinking. There were four achievements of which he was proud. The first one he loved to talk about was the solving of the coal crisis in New South Wales and in Australia generally. He felt that he had made a great contribution to solving this problem. He was proud of the contribution he had made to housing, and of the homes savings grant scheme. His delight with the achievements of the Snowy Mountains Authority knew no bounds. He was a very great Australian and was respected by all of us in the Liberal Party. To myself and others who were selected in 1948 to stand for election he was always willing to offer advice, to tell us what we should do and how we should comport ourselves in the electorate. I well remember the first major speech I made during the election campaign. Senator Spooner was the chairman of the meeting and the present GovernorGeneral was the main speaker.

The only other matter I would mention is the braveness of Senator Spooner during his last illness. I remember his asking me to go down to Sydney with him early in 1963. He then said he would not be a member of the next Cabinet - that is, the Cabinet selected in late 1963 or early 1964. So I was surprised when he was selected and accepted the appointment. I was not surprised when a few months later he decided he would retire and go back to private practice. I know of no man who faced the difficult days immediately before his death with so much heroism. His display of courage, I thought, was unmatched. He was a sick man, but he still loved his friends and companions to come over and talk to him about the happenings in Parliament and particularly about the personalities involved. As the Minister for Trade and Industry has said, he was a devoted family man. I know of no-one who had a better or happier married life than Senator Spooner did. His wife is a lovely and charming person on every occasion. My sympathy, and I am sure the sympathy of every member of the House, goes out to Lady Spooner and to her children and grandchildren. They will all miss him. On a Saturday or Sunday afternoon the grandchildren were always ready for a game with “ Uncle Bill “, as they called him. He was always there to look after their interests and to do his best for them. We mourn his passing. He was a very great Australian.

Sir JOHN CRAMER:
Bennelong

– I want particularly to associate myself with the resolution that has been moved by the Prime Minister (Mr. Harold Holt) and supported by other honorable members. I am, I think, the only remaining member of the Parliament who was a member of the original provisional executive that persuaded Sir William Spooner to become the President of the Liberal Party in New South Wales on its formation. I say “ persuaded “, because at no time in his career did he seek to hold office. He did not seek to come into public life or into parliamentary life at all. He was persuaded and he became, as the Prime Minister has said, President of the Liberal Party in New South Wales on its formation. He played an active part throughout Australia. He was a very shy man and a modest man, and he was a man of great initiative, great integrity and rare ability. As we all know, Sir William made a great success as President of the Liberal Party. Again, he was persuaded by the executive, of which I was a member at the time, to lead the Senate team for the Liberal Party in New South Wales in 1949. We have heard the story today of the events that followed. He was immediately appointed as a Minister. I served with him in the Ministry for some years. We know what outstanding contributions he made to the growth of Australia. He was a man not easy to know, but once a person met him one instinctively trusted him. His work will live long after we have all gone, because he made a rare contribution to Australia’s growth and to the political life of this country.

His only regret at being in public life was that it took him away from his own family. Essentially, he was a family man who loved to be with his family. I knew him very well as a family man because my wife and I were friends of his and of his wife and family. We know his son, Dr. Spooner, and his daughters and his grandchildren. He and I used to joke together about our grandchildren. We both had the same number of grandchildren and often we made fun of this situation. He loved his family and while he enjoyed carrying out his public duties he did regret the time it kept him away from his family. I tender my sincere sympathy to Lady Spooner and her family in their sad loss and I join with other honorable members in their expressions of sympathy.

Dr MACKAY:
Evans

– As the older and more distinguished members of the House have spoken, perhaps it is appropriate for a newcomer, who in this place knew Sir William Spooner for only too short a time, to have a word. Before I came to the House I knew him in his sphere as Minister for National Development because of my interest in exploration matters, particularly in respect of petroleum. When I was first elected to the House he was extremely kind, painstaking and generous in the advice that he gave me. I should like also to pay a tribute to his wife who was kindness itself and very gracious in helping my own wife during her first visit to Canberra, it is true that Sir William was a monumental figure in many ways. His sagacity and ability were well known. As the Prime Minister (Mr. Harold Holt) said, he was a politician’s politician, but he was also a man of great, simple friendliness and I personally valued tremendously the advice and help he gave me. I am sure I speak for the other younger and newer members of the House who found in him a friend who greatly eased and facilitated their coming into this sphere of service. 1 wish to add my support and commendation to the words spoken and to express my profound sympathy to his wife.

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

Mr Harold Holt:

– Mr. Speaker, I suggest that, as a mark of respect, the sitting be suspended until 8 o’clock.

Mr SPEAKER:

– I feel sure that the suggestion made by the right honorable the Prime Minister meets with the concurrence of the House. As a mark of respect to the memory of the deceased, the sitting is suspended until 8 p.m.

Sitting suspended from 3.54 to 8 p.m.

page 11

APPROPRIATION BILL (No. 1) 1966-/>7

Message from the Governor-General recommending appropriation for proposed expenditure announced.

Bill presented by Mr. McMahon, and read a first time.

Mr SPEAKER (Hon Sir John McLeay:
BOOTHBY, SOUTH AUSTRALIA

– In accordance with Budget practice, I now call on the Chairman- of Committees to take the chair as Deputy Speaker.

Second Reading. (Budget Speech.)

Mr McMAHON:
Treasurer · Lowe · LP

– I move -

That the Bill be now read a second time.

I do so to present the Budget proposals of the Government for the financial year 1966-67. It is with a high sense of privilege that I perform this duty.

Because the Commonwealth Budget appropriations are today so large and are so widespread, in their effects, they must have a strong and pervasive influence on our economy during the days ahead. For this reason I want to speak to you first about the economic state of the nation and the outlook for the future.

For five years now economic expansion has continued strongly although drought has taken toll in the past year. There have been many notable achievements: I mention a few. Since June, 1961 employment has increased by nearly 600,000 or 19 per cent. Net immigration has brought us about 400.000 more people and we have had a net capital inflow of more than $2,500,000,000. Most industries have increased production, some of them considerably. Many of them also have considerably expanded their capacity for future production and many new industries have come into being.

The value of our exports last year - not itself the best of recent years - was $2,648,000,000; that is, 43 per cent, above that of five years ago. Our overseas reserves have been considerably strengthened. The pessimism in some quarters of a year ago has proved to be totally unjustified.

We have achieved these results without an undue rise in prices. Despite the fact that there has at times been heavy pressure on resources, the Consumer Price Index has risen by only about 9 per cent, during the last five years. This relative stability in our price level as compared with trends in prices overseas has been very welcome from the standpoint of our international competitiveness.

In these years our problems have been extremely complex and have involved much more than the straightforward task of increasing employment and production. We have had to provide a big and rapid build-up in defence. Just at this time, too, many valuable capital projects, some of them very large, were getting under way. In a fully employed economy such as ours this involved a substantial transfer of resources so that some activities had to be held back in order that others could go quickly ahead.

This re-adjustment has been accomplished without any serious dislocation or significant check to the overall growth of employment. Inevitably, however, there has been a slackening of demand in some industries. This occurred in the motor vehicle industry and most of the industries producing consumer durables. In addition to this, the serious drought in New South Wales and Queensland affected both consumer spending and farm investment.

Looking ahead, there is reason for confidence about the outlook for production this year. From local increase and from immigration there should be enough additional labour to make possible a rise of about 3 per cent, in civilian employment; this of course is quite substantial. Other conditions should also favour an increase in output. On the rural side, while the drought or dry conditions have affected large areas of New South Wales and Queensland, seasons elsewhere have been generally good. Given good fortune with the weather over the next few months it is expected that total farm output will rise - though by how much is, of course, uncertain at this stage.

There should be a large increase in the output of minerals and metals, especially as large new projects in iron ore, alumina and so on come into production. Estimates we have show the value of bauxite produced rising from $7,200,000 in 1966 to $10,800,000 in 1967, iron ore production from 864,000,000 to $96,000,000, crude petroleum from $4,500,000 to $13,600,000, and zinc from $87,500,000 to $100,000,000. The value of mine production as a whole is estimated to rise from $598,000,000 to $670,000,000.

The large expenditures on plant and equipment which have already taken place must raise productivity and will continue to do so for some time to come.

This is the background. Looking to the future, the level of activity and hence of output depends very much on the trend and strength of domestic demand.

As to one big sector of demand - that is, expenditure by governments and other public authorities - we can be absolutely certain that it will go on rising strongly. I shall have more to say about this later.

The outlook for private capital expenditure in building and construction is difficult to assess. Dwelling construction has made some recovery and seems likely to continue to rise. The Government will do all it can to see that it does. There are, however, doubts about the trend in private non-dwelling construction. This wide and varied category has been increasing rapidly for several years past - partly because some large mining and industrial developments have taken place. In recent months there have been indications that the pace of growth in this sector may be slowing down. The possibility that it will do so cannot be ignored and we have kept this possibility well in mind while shaping our policy on the Budget.

Much the same applies to private capital expenditure on plant and equipment. Expenditure in this sector has been running high for a long time. Whilst much of the equipment has been imported from overseas, a good deal of it has been made locally, se that any fall in expenditure would tend to affect the local industries involved in such forms of production.

There remains the other critical sector, that is, consumer spending. The rate of increase in this kind of spending has tended to fall off in recent years, especially over the last twelve months or so. Tax increases, the effects of drought and the pressure of debts have all affected consumer spending. Do not let us forget that some reduction in the rate of increase of consumer demand had to take place in order to release resources for defence purposes and for other high priority uses. Obviously it would not be wise to permit such a trend to go too far if our resources are to be kept fully employed. As it is, there was a fall in output and employment in a large number of the industries which produce consumer durables, and employment in manufacturing as a whole rose very little in 1.965-66.

Speaking generally, we expect a considerable lift in consumer demand through 1966-67. The large and widespread wage increases flowing from the decisions in the National Wage Cases will undoubtedly boost community spending. This spending will be strengthened if there is some rise in farm income. The effect of the Commonwealth Budget will be expansionary, as I will show later, and will affect many avenues of demand including consumption.

Because of the prospective increase in the supply of labour and the growth of industrial capacity we should welcome some increase in demand in this area. But we do not want the economy to be stimulated to a degree that will later cause heavy competition for labour and materials.

In the broad, then, there should be scope for a rise in employment this year of about the same size as last year; it could be a little bigger and, with some encouragement from the weather, output should grow a good deal faster than last year.

Our overseas trade has grown in both money and physical terms and our overseas reserves are substantial. For all these reasons a reasonably strong increase in overall demand could probably be met without causing too great a run-down of our international reserves. This is the picture of the state of the nation and the prospects for the future as I see them. I now want to turn to some of the larger special problems we face.

page 13

DEFENCE AND THE BUDGET

This year the Government is providing $1,000,000,000 for outlays on defence. This is $252,000,000 or 34 per cent, more than actual expenditure in 1965-66.

Thanks to the excellent financial arrangements we have made with the United States Government, about $114,000,000 of the amount to be spent in that country for the purchase of materials and equipment this year will be covered by credits; so that we do not have to find this cash from our present Budget. This obligation is, however, only deferred and cash will have to be found in later years. Meanwhile, the figure of $1,000,000,000 indicates the level to which defence expenditure has increased.

This fact of steeply-increasing defence expenditure dominates our budgetary problem this year as it did that of last year. It does more than that. It raises profound issues of national priorities. Since 1963-64, only three years ago, annual defence costs have risen by $480,000,000 or over 90 per cent. Some allowance must be made for price and cost increases; even so, it is obvious that, in this comparatively short space of time, defence has come to claim a very large additional amount of resources that would otherwise have gone to developmental or consumption uses.

No one I am sure could seriously question the rightness of this. The need has arisen to strengthen our defences and to support allies with whom we have treaty obligations: We have faced that necessity and no one can reasonably say that the cost has so far been unduly burdensome. In fact, as I have said, we have been able in these years to ensure both a big increase in the defence effort and also a large expansion of our productive capacity. And yet, with each successive rise in defence expenditure, we have become increasingly conscious of a developing conflict between major national purposes - between the requirements of defence and those of growth. It is a real and substantial conflict. For Australia, more than for most countries, growth in its more fundamental forms is vital and of great urgency. To build up our population, to develop our resources, to enlarge our industrial capacity, to increase our exports, to improve our standards of education and health - all these are highly important not merely for the welfare of the nation but for its security.

page 14

QUESTION

EXPENDITURE 1966-67

This leads me to the central problem of the Budget.

So far as defence preparations compete for resources with aims and activities like those I have mentioned, we have difficult choices to make. Many times when compiling this Budget, these choices had to be made. Though some might think otherwise, there is no easy way out. The problem just cannot be solved or evaded by some conventional process of turning the screws a little harder and then a little harder again- that is, by increasing taxation to cut back consumption in order to release resources and when this has been done to increase defence expenditure and provide for more development. Beyond a point that sort of process can have adverse effects on the economy. It can set up reactions which are liable to defeat the original purpose. Carry it too far and it will lead to unemployment and that obviously would be helpful neither to defence nor to progress.

Accordingly, while a big rise in our defence commitments has been inescapable and has been accepted, it has been very much our concern to ensure that the burden should not become so great, either now or in the period ahead, as to force a curtailment of other activities which are fundamental to the growing strength of the nation.

We have had to put aside some popular and desirable measures. We have not, however, been prepared to put aside the claims of those who, through age or illness or other misfortune, are in need of help.

I have said that the big prospective increase in defence expenditure dominates our budgetary problem for this year. But it is far from being the whole of that problem. Total expenditure is expected to reach 55,930,000,000 in this financial year. On existing accounting procedures, the increase over expenditures last year will be $600,000,000. So that, besides the increase of $252,000,000 on defence spending there is estimated to be an increase of $348,000,000 in other items, and I may say that we have kept the figure down to this level by rejecting many expenditure proposals that came before us and by drastically pruning others. The plain fact is that many ideas of what the Budget can carry, the costs the taxpayer should be asked to bear and, indeed, the extent to which our resources can be stretched, have been tending to outrun the limits of what is practicable. That goes not only for defence but for development and for the whole range of public facilities and services.

It is probable that the need for a relatively high level of defence spending will be with us for a long time. It is certain that the urge for development and the scope for development will always be with us. The two must be harmonised within the framework of our economy whose resources and capacity, though growing fast, are still only small by comparison with those of some of the larger and more mature nations.

Mr McMAHON:
LP

– I did.

Mr Calwell:

– You did not. It is completely a Treasury effort.

Mr McMAHON:

– It is a combined effort by both of us, with a great deal of labour by me.

May I turn now to each of the main expenditure groups.

Payments to or for the States.

I will confine myself here mainly to Commonwealth grants in general aid of State budgets. The largest of these are the Financial Assistance Grants. They are estimated this year at about $816,600,000, an increase of about $59,000,000 over last year.

In this class also come the Special Grants to Western Australia and Tasmania, as recommended by the Commonwealth Grants Commission. This year the combined amounts total $40,072,000, which is $1,698,000 less than in 1965-66.

Because of the continuing effects of drought we have had to give special consideration to the financial difficulties of New South Wales and Queensland. Last year we provided them with $21,700,000 so that they might carry out programmes of drought assistance and relief. This year, regrettably, the need continues; to some extent it is accentuated because of the problems of re-stocking in areas which have had relief rains. As well, it has been found that the budgets of both States are suffering heavy adverse effects of an indirect kind which are clearly attributable to the drought and they would both be in serious financial difficulties without some further help. Accordingly it is proposed that, besides providing some $24,250,000 for drought assistance measures, we should also make grants of $8,000,000 to New South Wales and $2,750,000 to Queensland to help them meet budgetary problems due to revenue losses arising from the drought. All told, therefore, our assistance to those two States this year on account of the drought is estimated to be $35,000,000

There are in addition some miscellaneous grants for general assistance to the States. They amount this year to about $34,000,000, an increase of about $1,280,000 over last year

So that, on these figures, general purpose grants to the States and drought assistance will total about $926,000,000, which is some $72,000,000 above the total for 1965-66.

Works, Housing and Development.

The expenditures I have just described provide current services for the community through the Stale Governments - health, education, law, order and public safety. Next, let us look at the capital side of the account, the money that has to be found by the Commonwealth for construction activities of many kinds, mainly on the part of the States but also on its own account.

First, as to the Loan Council programmes, which cover the general run of Slate works and housing operations. Last year the total was $605,000,000; this year it will be $645,000,000 or $40,000,000 higher. This amount has to be found either by public borrowings, or in so far as borrowings fall short - as they are almost certain to do this year - from the Commonwealth Budget.

Next, there is a long and fast-increasing list of payments to the States for specific projects or classes of development work. It includes land development, forestry, water conservation and flood mitigation, roads, railways and ports. Such activities are estimated this year to require $198,600,000, an increase on last year of $12,900,000. I quote a few items- railways $25,000,000; roads $157,700,000; development and control of water resources $10,300,000; land development and forestry $5,000,000.

Besides these, the Commonwealth has its own big programme of capital works and services, estimated this year to require $471,400,000, which is $37,400,000 above expenditure in 1965-66. Again I should mention a few items.

Capital expenditure for the Post Office this year is $202,700,000, which is $21,500,000 more than the amount spent in 1965-66.

Civil aviation capital expenditure is estimated at $32,000,000; an increase of $10,400,000 or 48 per cent, on last year. Demands arising from technical and other developments in the aviation industry are creating extreme pressure on this section of public capital’ expenditure.

For the Snowy Mountains Authority we are providing $48,500,000. This is $6,000,000 greater than the amount spent in 1965-66.

We have set down an amount of $58,000,000 for war service homes. This is $12,000,000 less than last year because applications for advances have fallen and there is now no waiting list for advances either to buy or build new dwellings or to buy previously-occupied dwellings. If applications through the year prove to be more than now expected, additional funds will be provided.

Works in the Territories are expected to cost $80,900,000, which is $15,000,000 more than last year. I shall deal presently with current expenditures in the Territories.

Bringing these large items together, then, the Commonwealth is undertaking to find in this financial year $1,315,000,000 for works, including housing and related capital -services. This is an increase of $90,000,000 over the amount found for comparable expenditure in 1965-66.

PARKES TO BROKEN HILL RAILWAY.

The railway line between Parkes and Broken Hill will need to be upgraded as part of the projects under way to provide a standard gauge railway across the continent to link the eastern States with South Australia and Western Australia. Following a request by the Government of New South Wales for financial assistance for the purpose, we have decided to offer New South Wales a grant of $10,000,000 towards meeting the cost of upgrading the Parkes-Broken Hill section by the end of 1969. It is envisaged that the arrangements between the Commonwealth and New South Wales will be contained in an agreement which will be submitted to Parliament in due course. Because it is not yet known how much of the proposed grant is likely to be payable in this financial year, no specific provision has been made in the 1966-67 Budget.

Territories.

A recital of works expenditures does not show the whole of what the Commonwealth is doing to finance works and other activities directed to increasing national capacity.

The Territories include the Australian Capital Territory, the Northern Territory, Papua and New Guinea and the lesser territories. Besides finance for works in those areas, there will be operational expenditures this year estimated at $51,700,000. This is over and above the grant to the Administration of Papua-New Guinea of $70,000,000 to which I shall refer later. Operational expenditure in the Northern Territory is expected to rise from $25,600,000 in 1965-66 to $28,700,000 this year.

These figures relate only to expenditure by or through or on behalf of the local administrations. They do not cover sizeable expenditures by various Commonwealth departments in these regions. For example, in 1965-66 such expenditure in the Northern Territory was estimated to have been $27,800,000.

Subsidies and Assistance to Industry.

Following the same broad theme, I next draw attention to the formidable amounts being provided these days for subsidies and other forms of assistance to industry. Last year the total was $124,200,000. This year the estimate, allowing for a major addition we propose to make, is about $142,000,000. The list already includes subsidies on butter and cheese, cotton, gold mining, ship building, petroleum products prices, petroleum search, wheat stabilisation, wool use promotion, and superphosphate.

PETROLEUM SEARCH SUBSIDY.

The amount provided this year for expenditure under the Petroleum Search Subsidy Act is SI 1.900,000. This is designed to cover a programme of new subsidy approvals during the year of $16,000,000, compared with a programme of $11,700,000 in 1965-66. It is estimated that at 30th June, 1967 the outstanding commitments in respect of subsidy approvals will be $10,800,000; the corresponding figure at 30th June, 1966 was $6,700,000.

SUPERPHOSPHATE BOUNTY.

In 1963-64 we brought in a three-year scheme to pay a bounty on superphosphate at a standard rate of $6 per ton. The purpose was to awaken interest in and stimulate the use of superphosphate as a means to improve the productivity of farm lands deficient in phosphorus. The effect of the scheme is illustrated by the fact that sales of superphosphate in 1965-66 were just on 50 per cent, higher than in 1962-63.

The scheme will be continued in operation, at the same standard bounty rate of S6 per ton, for a further period until 31st October, 1969. The estimated cost of the bounty in 1966-67 is $28,000,000. Further details will be announced later to-night and the necessary legislation will be introduced shortly.

NITROGENOUS FERTILISERS BOUNTY.

Nitrogenous fertilisers have long been important to a number of our primary industries, especially sugar growing and fruit and vegetable production. Recent developments have indicated that there is much scope for increasing productivity by applying nitrogenous fertilisers to fodder and grain crops and new or established pastures. We have accordingly decided to introduce a bounty on nitrogenous fertilisers in addition to that payable on superphosphate.

The rate of bounty will be S80 per lon of the determined nitrogen content of naturally occurring sodium nitrates and products manufactured from inorganic chemical nitrogen. The bounty will be payable on such products sold by manufacturers and importers during the period 17th August, 1966 to 31st October, 1969 for use in Australia as fertiliser or stockfeed supplement. The bounty is estimated to cost 54.750,000 in 1966-67 and $5,600,000 in the first full year of operation.

Again, further details will be announced later to-night and legislation will bc brought clown as soon as possible.

RESEARCH AND DEVELOPMENT.

In a world where technology is changing rapidly and becoming increasingly complex, industrial research and development is assuming increasing importance in the promotion of the nation’s industrial strength and efficiency. For this reason we have for some time now been studying the question of encouraging Australian industry to undertake more research and development work on its own.

I am pleased to announce that the Government has decided to provide up to $6,000,000 a year for a scheme of grants for this purpose. Some details of the scheme have still to be finalised, but eligibility for grants will be confined to firms which increase their expenditure on research and development as compared with a base period.

This year expenditure on the scheme will necessarily be small because legislation will need to be enacted and also because the scheme will apply only to expanded research and development. Accordingly, provision is being made for expenditure of $250,000 on the scheme in 1966-67.

Immigration.

Developmental works and incentives and assistance to industry have the clear purpose of building up our economy to achieve greater production. Much that we are doing in those fields would be of little avail without immigration, on which we must rely increasingly to provide a larger population and work-force. The money we spend on immigration may therefore be counted in with the other expenditures I have described as being directed to the building and progress of the nation. In my opinion this money is very well spent.

Clearly the only sound and sensible policy is to keep on seeking and encouraging a greater inflow of migrants. The Government has decided upon further important measures to achieve that purpose. My colleague, the Minister for Immigration, will later announce details of the proposals.

Broadly, we propose to increase our contribution to the passage costs of certain categories of migrants, particularly workers in Europe who wish to migrate to Australia with their families. Many are at present unable to do so because they do not benefit from the financial assistance available under existing bilateral arrangements with countries of emigration.

We are also making special provision for assistance to voluntary agencies which for many years have been active in helping migrants to travel to Australia.

Total provision in the Budget for immigration costs this year amounts to S45,000,000, an increase of $3,800,000 over expenditure last year. Of this $45,000,000, some $26,800,000 represents expenditure on assisted passages and about $5,600,000 assistance towards the costs of accommodating migrants in hostels on arrival in Australia.

Education.

Immigration increases the number of our people. Higher standards of education help to raise the quality of our people as citizens and as contributors to the work and life of the community. A major part of State expenditure on education is indirectly financed by the Commonwealth through the general assistance grants we make to the States and through the support we provide from our Budget to the States’ works programmes. Besides this, however, the Commonwealth has in recent years substantially increased its expenditure on specific forms of education.

In 1961-62 this expenditure amounted to $51,900,000. Last year the total was $110,900,000. This year it will be $141,100,000. Thus, in five years, there has been almost a trebling of expenditure on this account. For the current financial year an increase of more than $30,000,000 is in prospect.

Of the $141,100,000 this financial year, some $84,700,000 will be made available to the States. This compares with an amount of $28,300,000 paid to the States for this purpose in 1961-62. Of the provision for this year, $54,600,000 will comprise grants for both capital and recurrent expenditures of universities. There will be about $8,300,000 for Colleges of Advanced Education, $10,200,000 for science laboratories and $11,700,000 for technical training facilities. We will, of course, during this session of Parliament have to consider proposals by the Australian Universities Commission and the Commonwealth Advisory Committee on Advanced Education on the level of assistance to be made available in the 1967-69 triennium for universities and Colleges of Advanced Education respectively. We have taken this into consideration in the provision we have made for grants to the States in the current financial year.

Commonwealth scholarships this year are expected to cost $22,700,000, divided between post-graduate, university and advanced education, secondary and technical scholarships.

For the Australian National University we are providing an estimated amount of $19,600,000, of which $14,200,000 is for current expenditure and $5,400,000 for capital expenditure.

At this point, having just covered what I might in a broad way call the development items of the Budget, I want to draw attention to a significant fact. The total expenditures included in the Budget amount to approximately $5,930,000,000. Of this amount, about $1,677,000,000 or 28 per cent, will finance works, housing and developmental services in Australia and the Territories, direct current expenditure in the Territories, subsidies and assistance to industry, immigration and education. These expenditures can be broadly described as investment in Australia and its people.

External Economic Aid.

The estimates provide $103,300,000 for aid expenditure in 1966-67. Expenditure last year amounted to $95,600,000, including emergency aid for India which cost some $7,400,000.

Our regular bilateral aid programmes continue to grow. This year the Colombo Plan is expected to be some $1.3,000,000 compared with $11,800,000 last year. Meanwhile there will be a big increase in expenditure on multilateral aid. The vote for the International Development Association will increase this year by $1,200,000 to $6,900,000 and the Asian Development Bank will involve a first contribution of $3,800,000. As far ahead as we can see, expenditures on multilateral aid will continue to increase.

There will also be a rapid increase in grants to Papua-New Guinea, which have more than doubled in five years. The estimates provide $70,000,000 for this purpose in 1966-67, some $8,000,000 more than last year.

Our aid contributions have increased substantially during recent years, in sharp contrast with the contributions of other aid-giving countries. Since 1.961 the total flow of financial assistance from the major industrial countries to developing countries has been virtually stationary - our aid expenditures have increased by over 70 per cent. Further, our aid has been provided entirely in the form of grants. Although firm figures for the past year are not yet available, Australia’s relative performance in the official aid field would undoubtedly place it amongst the first four or five nations in the world.

Mr Calwell:

– That is not so.

Mr McMAHON:
LP

– It happens to be true.

Mr Calwell:

– No, it is not true.

Mr McMAHON:

– The honorable member does not know. He would not have the information and could not know.

Social Services.

The Government has carefully and sympathetically considered the needs of social service beneficiaries. The full range of our social services has been reviewed and we have decided to make a number of improvements in benefits and entitlements.

AGE, INVALID AND WIDOWS’ PENSIONS.

We intend to increase the standard rate of pension by SI per week. This will bring the maximum weekly rates payable to single age and invalid pensioners and to widow pensioners with children to $13 per week.

Mr Calwell:

– Not enough. Could you live on that?

Mr Chipp:

– How much would the Opposition give them?

Mr Calwell:

– Much more than they ure getting from the Government.

Mr DEPUTY SPEAKER (Mr Lucock:
LYNE, NEW SOUTH WALES

– Order! I suggest that the House come to order. The Treasurer has to present complicated figures. This is his first Budget and interjections should cease.

Mr McMAHON:
LP

– For widows without children the new maximum rate will be $1 .1.75 per week. The combined pensions of a married couple will be increased by $1.50 per week, thus increasing the maximum basic payment to them from $22 to $23.50 per week. These rates are exclusive of the various allowances payable.

At present pensioners with dependent children are allowed a deduction for means test purposes from any income they may receive apart from their pension of $1 per week in respect of each child. It is proposed to increase the amount of this deduction to $3 per week.

Action is proposed to assist pensioners on their discharge from mental hospitals by increasing from four to twelve weeks the period in a mental hospital for which pension may be paid to them when they are discharged. In addition, sickness benefit will be paid to eligible persons on discharge from a mental institution for up to twelve weeks of the period they were in the institution.

We also propose to remove the nationality qualifications for age, invalid and widows’ pensions.

These proposals will require amendments to the legislation. The additional and new pension benefits will be payable on the first pension pay-day after the legislation comes into operation.

HOMES FOR AGED PERSONS.

important modifications will be made in the administration of the Aged Persons Homes Act to permit an eligible organisation to receive grants towards accommodation for residents requiring continuous nursing care. This will apply when the number of beds in such accommodation does not exceed one-third of the total number of beds in aged persons homes conducted by the organisation in the particular city or town.

The estimated cost of this group of proposals is S30,082,000 in 1966-67 and S4(),800,000 in a full year.

PENSIONER MEDICAL BENEFITS.

It is proposed to extend the benefits available under the Pensioner Medical Service to those persons who will now qualify for age, invalid, widows’ or service pensions because of the increased rates of pensions.

TUBERCULOSIS ALLOWANCES.

Linked with the increases in social service pensions is a proposed increase in tuberculosis allowances. The married rate will be increased by $1.50 per week and all single rates by $1 per week.

It is intended that the new rates will be paid concurrently with the increased social service pensions. The cost will be $60,000 for 1966-67 and $80,000 for a full year.

We also have in view an extension oE tuberculosis allowances to voluntary patients in mental institutions who, up to now, have not qualified for these allowances. The proposal will remove an anomaly and the cost involved is small.

HEALTH SERVICES.

Substantial improvements are planned in health services, apart from the proposals relating to tuberculosis patients. These include increases in the rates of hospital benefits for pensioners and chronically ill patients.

Under existing arrangements, pensioners and their dependants are entitled to free public ward accommodation and treatment in public hospitals. The Commonwealth pays the hospital concerned $3.60 per day on behalf of each pensioner or dependant accommodated. It is proposed to increase this rate by 40 per cent, to $5 per day in recognition of the increased costs incurred by hospitals in providing pensioners with accommodation and treatment free of charge. The increased rate will operate from 1st January, 1967 and will cost $2,500,000 in 1966-67 and $6,600,000 for a full year.

A further proposal relating to Hospital Benefits involves what is known as the “standard rate benefit”. Registered hospital benefit organisations, to maintain viability, have rules enabling them to refuse full benefit on claims. The rules relate to chronic illnesses, ailments which were known to have existed before joining the organisation and maximum periods of hospitalisation. The Commonwealth, however, underwrites special accounts maintained by the funds to enable people affected to receive combined hospital benefits totalling, usually, not less than $3.60 per day. It is proposed to increase this combined hospital benefit rate to $5 per day from 1st January, 1967. The cost of this will be over $800,000 during 1966-67 and $2,500,000 for a full year.

page 20

TOTAL COST

In all, the cost of these additional benefits and entitlements is estimated to be $33,600,000 in 1966-67 and $50,150,000 in a full year.

Including these, the total of expenditure from the National Welfare Fund is this year expected to be approximately $1,020,000,000 which would be an increase of $78,000,000 over expenditure in 1965-66.

Repatriation

page 20

WAR PENSIONS

There will be an increase of $2 per week ]n the Special Rate of pension which henceforth will be $30.50 per week. The pension is paid to totally and permanently incapacitated ex-servicemen, to the war-blinded and to certain of the most seriously disabled ex-servicemen.

As a result of this increase in the Totally and Permanently Incapacitated Rate, the Intermediate Rate of pension which is payable to those who, on account of warcaused disablement, are able to work only part time or intermittently, will be Increased from $20.25 per week to $21.25 per week.

The War Widow’s Pension will be increased by $1 from $12 per week to $13 per week.

page 20

SERVICE PENSIONS

There will be a number of changes in the service pensions area to accord with proposed advances in the comparable social service benefits.

There will be an increase of $1 per week in the “ single “ rate service pension payable to ex-servicemen. In the case of a married service pensioner whose wife is receiving a social service pension or a tuberculosis allowance or is herself a “ member service pensioner “ the combined increase in their pensions will be $1.50 per week.

Also, in line with the provision being made to ease the income means test for social service pensioners with children, there will be a deduction of $3 per week from the income of a “ member “ service pensioner in respect of each eligible child in means test assessment.

A new benefit to be provided for “ member “ service pensioners will be payment of up to twelve weeks arrears of service pension for a patient discharged after treatment in a mental hospital.

The new and additional pension benefits will be payable on the first pension payday after the necessary legislation has been passed.

The additional cost of the increases in repatriation benefits and entitlements is expected to be $5,600,000 in 1966-67 and $7,500,000 in a full year.

Total expenditure on Repatriation Services in 1966-67 is estimated to be $249,300,000. This is $4,200,000 less than expenditure in 1965-66 because of fewer pension pay days this year.

Administrative and Operational

I take now the administrative and operational expenditures of the Commonwealth and its various agencies including the business undertakings - she Post Office, the broadcasting and television services and the Commonwealth Railways.

The running expenses of Commonwealth Departments this year, other than in respect of immigration and education, are estimated to be $324,200,000, an increase of $45,000,000, over last year.

The current expenditures of the business undertakings are estimated to be $362,200,000, an increase of $28,700,000 over 1965-66.

Thus the total amount to be provided for these administrative and operational expenditures this year is $686,400,000, which is $74,000,000 above expenditure in 1965-66.

These expenditures, it should be said, have been quite heavily affected by the recent decisions in the national wage cases and by other wage and salary increases as well.

Miscellaneous Expenditure

There remain a variety of other expenditures for which we have to provide. They include debt charges and various other annual and special appropriations. All told they account for a total sum of $269,000,000 in our estimates.

Included amongst these are various items of interest for which we are making additional funds available this year. Details of these miscellaneous items are given in the appendix to the Budget Speech. With the concurrence of honorable members, I shall incorporate that appendix in “ Hansard “.

page 21

SUMMARY OF EXPENDITURE

I am now able to present our expenditure estimates in summarised form from two standpoints.

First, taking total expenditure at $5,930,000,000 it comprises- $1,000,000,000 or 17 per cent. for defence; $926,000,000 or 16 per cent. for general purpose grants and drought assistance to the States; $1,677,000,000 or 28 per cent. for works and developmental services, Territories, subsidies, immigration and education; $103,000,000 or 2 per cent. for external economic aid; $1,269,000,000 or 21 per cent. for social services and repatriation; $686,000,000 or 12 per cent. for administrative and operational services; $269,000,000 or 4 per cent. for miscellaneous expenditure.

Taking next the estimated increase of $600,000,000 in expenditure, it includes increases of - $252,000,000 or 34 per cent. in defence; $72,000,000 or 8 per cent. in general purpose grants and drought assistance to the States; $ 146,000,000 or 10 per cent. in works and development, Territories, subsidies, immigration and education; $7,700,000 or 8 per cent. for external economic aid; $74,000,000 or 6 per cent. for social services and repatriation; $74,000,000 or 12 per cent. for administrative and operational expenditure.

National Debt Sinking Fund

Here I may mention that, later in the sessional period, I will introduce legislation to revise the National Debt Sinking Fund Act. The main purpose will be to modernise and simplify some of the provisions of the Act which have applied since1923. Such a change is long overdue and it will be an advantage to time it to coincide with the changeover to decimal currency.

A new base date of 30th June, 1966 will be established for the calculation of sinking fund contributions and a more meaningful definition of Commonwealth debt liable to these contributions will be adopted. From that date, annual sinking fund contributions of 4 per cent. will be made from Consolidated Revenue. Contributions at this rate will enable all outstanding and newly created Commonwealth debt to be paid off over a period of 25 years.

It is also proposed that certain special receipts which have hitherto been credited to the National Debt Sinking Fund will in future be taken into Consolidated Revenue.

As the proposed changes will only affect transactions as between funds within the Public Account, the overall Budget result for the year will not be affected. For accounting reasons, these changes will result in an apparent reduction of about $50,000,000 in the estimated increases in total receipts and total expenditures. This accounting adjustment needs to be kept in mind when the estimates of total receipts and expenditures are being compared with earlier years.

page 22

REVENUES AND OTHER RECEIPTS

Much that I have said so far is directed to the fact that our expenditure this year will show a very large increase. By contrast, there will not be a large rise in revenue. The effects of drought and of cost increases on farm income will show up in reduced yields of income tax from primary producers. The income of many companies assessable for taxation this year will reflect the indifferent year those companies bad in 1965-66.

No doubt, wilh, rising employment and earnings, there will be a fairly strong increase in pay-as-you-earn collections and we can expect substantial increases from sales tax and customs and excise. These considerations however do not add up to the prospect of buoyant revenues. Regrettably, in the light of its heavy current and prospective expenditure commitments, the Government cannot propose any general tax reductions this year. It does propose a number of minor concessions, which I will outline presently. The cost of these to revenue will be $1,500,000 in 1966-67 and $3,700,000 in a full year. After taking account of these reductions we estimate that taxation revenue will increase this year by $274,000,000.

page 22

TAXATION PROPOSALS

Income Tax

AGED PERSONS.

As a corollary to the increase in age pensions, it is proposed to raise the income level up to which the age allowance exemption is available to residents of Australia who meet the age qualification. The qualifying age is sixty years for women and sixty-five for men.

No tax is payable at present by an aged person whose net income does not exceed $988. In future, no tax will be payable by an aged person whose net income does not exceed $1,040. For a married person qualified by age, exemption from tax will be authorised where the combined net income of the husband and wife does not exceed $1,950, as compared with $1,872 at present.

The cost to revenue of these adjustments to the age allowance will be $800,000 in a full year and $400,000 in 1966-67.

PRIMARY PRODUCERS.

One proposal affecting primary producers relates to those woolgrowers who, because of the drought, advanced shearing dates during the 1965-66 income year. In these cases proceeds of two wool clips would be brought to account for taxation purposes in the one year. It is proposed that these woolgrowers will be able to elect to transfer the net proceeds of the second clip to the 1966-67 income year. This will extend to the 1965-66 income year a measure adopted to meet corresponding circumstances in the 1964-65 income year.

A second proposal relates to the forced sales of livestock in consequence of fire, drought or flood. At present, a primary producer may elect that the net proceeds of these sales be taxed over five income years if the proceeds are used principally to purchase replacement stock. It is proposed to extend this right of election to cases in which the proceeds are used principally to re-stock otherwise than by purchasing new stock, for example, by maintaining a breeding herd or flock. The extended right of election will apply to forced sales made during the 1965-66 income year and subsequent years.

A further proposal would remove the limit of seven years on the carry-forward period for deduction of prior year losses incurred in primary production. The limitation will not in future apply to a loss incurred in the 1957-58 income year or a subsequent year.

It is also proposed to amend the averaging provisions applicable to primary producers by raising the income limits up to which the averaging provisions apply from $8,000, to $16,000. The provisions governing the right of taxpayers to withdraw from or re-enter the averaging system are also being reviewed. An announcement will be made on both these matters shortly.

The final proposal affecting primary producers is the allowance of a deduction in the year in which it is incurred for the full cost of fences erected to combat soil erosion.

The cost to revenue of these proposals is estimated to be $1,560,000 in a full year and $300,000 for 1966-67.

Gifts

It is proposed to allow a deduction for gifts of $2 and upwards to the Australian Council of National Trusts, the Australian Conservation Foundation, and prescribed colleges of advanced education where the gift is for tertiary education activities of the college. As a supplementary measure, it is proposed to amend the estate duty law to exempt from estate duty gifts to the Australian Council of National Trusts and the National Trusts of Queensland, Western Australia and Tasmania. Gifts to the national trusts of other States are already exempt from estate duty.

The estimated cost to revenue for a full year is $70,000. No cost is expected in 1966-67.

Sales Tax

To remove an anomaly it is proposed to reduce to 22- per cent, the rate of sales tax on air conditioners and electric fans if they are of a household type. These are now taxed at the rate of 124 per cent. It is also proposed to exempt from sales tax goods for use by the Australian Institute of Aboriginal Studies.

The losses to revenue arising out of these proposals are estimated to be $1,000,000 in a full year and $800,000 in 1966-67.

Payroll Tax

Salaries and wages paid by privately run schools up to secondary education level conducted by organisations not carried on for the profit or gain of members will be exempt from payroll tax. This proposal will cost $60,000 in a full year and $40,000 in 1966-67.

A further proposal relates to the payroll tax rebate available to exporters. In calculating the rebate, it is proposed that excise duty and sales tax be excluded from the gross receipts of an exporter, where these levies on particular goods are included in the price for which the goods are sold by him. This change will increase the rebate available to exporters liable to pay these levies.

The changed formula will have effect in relation to exports made after 1st July 1966. The cost to revenue is estimated to be $200,000 for a full year, but there will be no cost in 1966-67.

Taxation Export Incentives

In this context I mention that a general review of the export incentives provided by the income tax and payroll tax law is now being carried out. As already announced, incentives are to be continued after 30th June 1968, the date at present specified in the law for the termination of the present schemes.

page 23

OTHER RECEIPTS

Revenues from business undertakings are expected to total $495,000,000, which is $37,000,000 greater than last year. Apart from the effects of accounting changes, there will be a small increase in miscellaneous receipts.

Included amongst the latter are the proceeds of air navigation charges which, in accordance with its standing policy of seeking full eventual recovery of the cost of commercial aviation facilities, the Government proposes to increase by a further 10 per cent.

In all, therefore, we are reckoning on receipts from taxation, charges and similar sources of the order of $5,397,000,000. Accounting changes apart, this would represent an increase of about $318,000,000 over that of last year.

page 23

EXPENDITURE AND RECEIPTS

Thus, with total expenditures estimated at $5,930,394,000 and total revenue and other receipts of $5,397,249,000, there remains an amount of $533,145,000 to be covered by borrowing in various forms. The comparable amount in 1965-66 was $251,082,000. I stress these amounts, Mr. Deputy Speaker.

page 24

BORROWINGS

Last year, although redemptions were fairly heavy, our net public borrowings were $252,000,000. We are unlikely to do nearly as well this year because capital for international investment is drying up and there is intense competition for what is available. Interest rates are very high and tending to rise further and both Great Britain and the United States have placed restraints on capital exports. Within Australia there is also strong competition for capital and public authority borrowing programmes are larger than ever. We also face the prospect of heavier redemptions this year than last, especially in respect of overseas debt.

Net loan raisings are always difficult to assess. In the Budget we have used a tentative figure of $150,000,000 which would be about $100,000,000 less than those of 1965-66.

Besides these net loan raisings we have available, as 1 have mentioned earlier, credits to cover purchases of defence equipment in the United States, the amount to be provided this year being estimated at some $114,000,000.

There would accordingly remain an amount of about $270,000,000 to be financed from temporary borrowings in Australia. This is what we call the cash book deficit in the Budget. Last year no such borrowings were necessary. A Bill will later be introduced to authorise the necessary borrowings.

page 24

THE BUDGET AND THE ECONOMY

In terms of cash receipts and outlays, therefore, this Budget will probably run fairly heavily into deficit. Such a deficit will increase monetary liquidity; on the other hand, this will be offset to the extent that there is any decline in our overseas reserves.

Earlier, when discussing the general outlook for the economy and, in particular, the likely trend of demand, I said that the Government expected the general effect of the Budget to be expansionary. Tbit problem is analysed on a national accounting basis in Statement No. 6 attached to the speech.

I quote the conclusion reached. “ Although “ it says, “ any calculations of the initial impact of the Budget will necessarily be very imprecise (and, taken alone, will not themselves provide adequate guidance to future movements in the economy as a whole), the figuring suggests little doubt that the initial impact of the 1966-67 Budget upon incomes and demand within Australia will be greater than that which arose from the transactions of the Commonwealth in 1965-66”.

Within limits the Government wants the Budget to be expansionary. Indeed, if the Budget were not expansionary we would be taking other measures to ensure that expansion took place. We want to see full employment maintained and expansion go on as well in the private as in the public sector. We do want resources to be fully and effectively employed. This is not an easy task and will require both sensitive judgment and continued attention. We must always keep in mind the possibility of significant changes occurring both at home and abroad which could affect the prospect of achieving our goals. We do say that we will be ready to meet the changes and shall do our best to see that our objectives are achieved.

As I have said earlier, we regret that we cannot propose general reductions in taxation. The weight of our expenditure commitments, especially on the side of defence, precludes such a possibility even though the Government is very conscious that the burden of taxation has increased in recent years, particularly for the individual taxpayer. It is the price we pay for growth and for security; but it is also a warning that, as a nation of fewer than 12 million people with a continent to develop, we face strict limits on the commitments we can and should accept. To attempt more would be to over-stretch our resources and capacities and bring on a chaotic state of things which could only serve to weaken our efforts and defeat our larger purposes. This, Mr. Deputy Speaker, is the Budget for this year. I strongly commend it to the House.

page 25

APPENDIX TO BUDGET SPEECH, 1966-67

Miscellaneous Expenditure Proposals. assistance to flying training.

The Government has recently reviewed the schemes of Commonwealth assistance for flying training and has decided to increase the extent of this assistance. The Commonwealth flying scholarship scheme will be continued for a further five years on the basis of a flat Commonwealth contribution of $100,000 a year plus a further amount of up to $75,000 a year on a $ for $ basis with contributions by the airlines. We also propose to establish a revolving fund to finance the purchase of training aircraft for leasing to country aero clubs. An appropriation of $40,000 is proposed for this purpose in 1966-67, and further appropriations will be made to the fund over the next few years within an overall limit of $200,000. In addition, we have decided to increase the Commonwealth grants to the Aero Club Federation and the Association of Commercial Flying Organisations to $18,000 and $3,000 respectively in 1966-67, and to increase to $15,000 the annual grant to the Gliding Federation for each of the next five years. assistance to elizabethan theatre trust.

Provision has been made in the Budget for a grant-in-aid to the Elizabethan Theatre Trust of $600,000 in 1966-67, which is $80,000 more than was provided in respect of 1965-66. assistance to national fitness.

We have decided to increase the Commonwealth’s annual allocation for national fitness activities from $200,000 to $300,000. Tn addition, we propose offering the States assistance of one-third of the cost of capital projects associated with the national fitness movement, within an overall Commonwealth provision of $200,000 for this purpose over a period of three years. assistance to road safety.

Road safely is, of course, predominantly a matter for the States. The Commonwealth has for some time, however, been contributing to the cost of road safety publicity and we have decided to increase the Commonwealth contribution for this purpose in 1966-67 from $300,000 to $350,000. assistance to medical research.

At present, the Commonwealth is providing $852,000 a year for medical research sponsored by the National Health and Medical Research Council. We propose to increase the level of this assistance by 25 per cent., so that as from 1st January, 1967 it will be provided at an annual rate of $350,000. assistance to industrial design council.

The Government has decided to increase its financial assistance to the work of the Industrial Design Council. Compared with a Commonwealth grant of $90,000 in 1965-66, the Council will be eligible in 1966-67 for a grant of $99,000, comprising a base payment of $50,000 and a payment of up to $49,000 to match, on a $ for $ basis, the Council’s receipts from other sources. childen’s pensions.

The pensions payable under the Superannuation Act 1922-1965, the Defence Forces Retirement Benefits Act 1948-1965 and the Parliamentary Retiring Allowances Act 1948-1965 to children who have lost both their parents will be based, in future, on the father’s pension entitlement, but the present pension of $10 per week will remain as a minimum. decoration allowance.

Subject to formal concurrence of the United Kingdom authorities, it is proposed to pay decoration allowances payable to certain disabled ex-servicemen who have received awards for gallantry at a uniform amount of $1 per week in lieu of the several rates at present in force. For most this will mean an increased rate of allowance; special provision will be made to ensure that the small number at present receiving more than $1 per week will have their existing rate maintained. This proposal will be given effect by amendment to the Repatriation Regulations.

STATEMENT No.1.- BUDGET RESULTS, 1965-66.

PART A- SUMMARY.

In 1965-66, the excess of Commonwealth expenditures over receipts - the amount to be met from borro wings - increased by $94,322,000. While total Commonwealth receipts increased by $500,748,000, Commonweal th expenditures increased by$595,070,000. Inthe following table the results of the Commonwealth's financial transactions for 1965-66 are compared with the results for the preceding financial year. Total expenditures, other than redemptions, increased by$595,070,000 to $5,379,710,000 in 1965-66. The main increases in expenditures in 1965-66 over expenditures in 1964-65 were: - Total receipts of the Commonwealth amounted to$5, 128,628,000 in 1965-66, or $500,748,000 more than in 1964-65. Of this increase, $389,925,000 came from taxation collections, including an increase of $254,088.000 in income tax collections from individuals and companies and an increase of $120,279,000 in excise collections. Receipts of Business Undertakings increased by $33,790,000, and the income of the National Debt Sinking Fund by $9,683,000. The net increase in other Trust Fund balances in 1965-66 was $30,042,000 greater than in 1964-65. It is estimated that the revenue measures introduced in the 1965-66 Budget accounted for about $140,000,000 of the total increase in receipts in 1965-66. A detailed comparison of actual expenditures and receipts in 1965-66 with the Budget estimates for that year is given in Part B of this Statement. Gross cash proceeds of loans (including Special Bonds) amounted to $583,748,000 for the year, an increase of $38,906,000 on 1964-65. Redemptions, at $331,946,000, were $18,392,000 less than in 1964-65, with the result that loan proceeds net of redemptions for the year increased by $57,298,000 to $251,802,000. Net loan proceeds in Australia increased by $60,138,000 to $291,634,000. Overseas loan transactions resulted in the net redemption of $39,832,000 of overseas debt, or $2,840,000 more than in 1964-65. Further details of the various loan transactions of the Commonwealth during 1965-66, including a reconciliation of the cash figures in the Budget with the Loan Council figures, are given in Part C of this Statement. Net loan proceeds in 1965-66 exceeded the excess of expenditures over receipts to be met from borrowings by $720,000. In consequence, there was a net reduction of $336,000 in Treasury Notes and Treasury Bills outstanding and an increase of $384,000 in cash balances. The Consolidated Revenue Fund was balanced after the payment of $210,464,000 to the Loan Consolidation and Investment Reserve, from whence this amount was applied towards meeting commitments outside the Consolidated Revenue Fund. The following table sets out in summary form the relationship between Consolidated Revenue Fund transactions and other transactions of the Commonwealth in 1965-66. Total expenditures amounted to $5,379,710,000 in 1965-66, which was $45,650,000 or 0.86 per cent, greater than had been estimated in the Budget. The main variations from the Budget estimates were as follows: - Defence Services. - Expenditure on Defence Services fell short of the Budget estimate by $23,985,000. Expenditure on general stores for the R.A.N, was $10,266,000 less than estimated; on naval construction, $9,174,000 less; and on Defence Aid for Malaysia, $6,708,000 less. Expenditure on pay and allowances for the Army exceeded the Budget estimate by $4,023,000. Payments to or for the States. - Payments to or for the States exceeded the Budget estimate by $17,733,000, mainly because of the payment of special drought assistance of $14,200,000 to New South Wales and $7,500,000 to Queensland, for which no provision was made in the Budget. Payments of financial assistance grants were $2,257,000 greater than estimated; payments to the States for universities were $1,350,000 greater; and advances to Queensland for developmental works at Weipa $1,217,000 greater. Expenditure on rail standardisation projects fell short of the Budget estimate by $4,218,000; on grants for technical training buildings and equipment by $3,770,000; and on grams for Colleges of Advanced Education by $1,018,000. Payment to National Welfare Fund. - The payment to the National Welfare Fund fell short of the Budget estimate by only $90,000. However, expenditures on Age and Invalid Pensions were $4,845,000 less than estimated; on Hospital Benefits, $2,157,000 less; on Medical Services for Pensioners, $1,335,000 less; and on Homes Savings Grants, $654,000 less. Expenditures on Unemployment and Sickness Benefits exceeded the Budget estimate by $2,291,000; on Pharmaceutical Benefits by $3,452,000; on Pharmaceutical Benefits for Pensioners by $871,000; on Tuberculosis Medical Services and Allowances by $2,415,000; and on Child Endowment by $1,032,000. Other Special Appropriations. - Expenditures under Other Special Appropriations exceeded the Budget estimate by $2,070,000. Drawings of Australian currency by other countries from the International Monetary Fund involved payments totalling $17,857,000 which were not provided for in the Budget. Expenditure under the Petroleum Products Prices Scheme exceeded the Budget estimate by $1,520,000. Expenditure associated with the transition to decimal currency fell short of the Budget estimate by $10,648,000; the payment into the Wheat Prices Stabilisation Fund was $1,13 J, 000 less than estimated; contributions to the International Development Association and the Indus Basin Development Fund $996,000 and $982,000 less, respectively; and expenditure under the Stevedoring Industry Act, $1,040,000 less. Departmental Running Expenses. - Expenditure on Departmental Running Expenses exceeded the Budget estimate by $7,412,000, mainly as a result of increased salaries consequent upon the application of the increases awarded in the 1965 National Wage Cases to salaries of Commonwealth employees and additional staff in several Departments. Other Services. - Expenditures under Other Services exceeded the Budget estimate by $20,293,000. Expenditure on ship construction by the Australian Shipbuilding Board exceeded the Budget estimate by $8,001,000, but that was partly offset by an increase of $6,171,000 in receipts from the sale of ships. Expenditure of $7,381,000 for emergency food aid to India was not provided for in the Budget. Other expenditures in excess of the Budget estimate were $1,266,000 for grants under the Aged Persons Homes Act; $1,187,000 for the Commonwealth Scholarship Schemes; and $782,000 for the remission of taxes and lines under special circumstances. Stale works and housing programmes. - At its June, 1965 meeting, the Loan Council approved a governmental borrowing programme of which $590,000,000 was for State works and housing in 1965-66. State domestic raisings were estimated to amount to $14,000,000, leaving an estimated amount of $576,000,000 to be met from Commonwealth borrowings. A further $15,000,000 for housing was added in March, 1966, making a total programme for State works and housing of $605,000,000. State domestic raisings yielded $8,070,000 less than the estimate, so that the amount for State works and housing met from Commonwealth borrowings was $23,070,000 greater than had been estimated. Total receipts of the Commonwealth, at $5,128,628,000 were $94,262,000 or 1.8 per cent, less than the Budget estimate. Taxation collections were $122,573,000 less than the Budget estimate, but receipts from other sources exceeded the Budget estimate by $28,312,000. The differences between actual taxation collections and Budget estimates were as follows: - While total imports were close to the estimate upon which the Budget estimate of customs collections was based, the proportion represented by capital equipment was greater than had been expected, with the result that the ratio of customs revenue to imports was lower than had been expected at the time of the Budget. This was the main reason why customs collections fell short of the Budget estimate by $14,839,000. Excise collections were affected by heavy preBudget clearances of some goods in anticipation of increases in duty in the 1965-66 Budget. In addition, there was a decline in consumption of alcoholic spirits, while consumption of motor spirit and tobacco products rose less rapidly than had been expected. Sales tax revenue fell short of the Budget estimate by $24,610,000 mainly because of a decrease in sales of motor cars and station wagons and other items in the 25 per cent, rale class. The Budget estimate had allowed for a rise in sales of these commodities in 1965-66. Pay-as-you-earn instalment deductions were significantly below the Budget estimate mainly because average earnings rose less rapidly than had been expected. Income tax collections on assessments of individuals fell short of the Budget estimate by $42,226,000 mainly because incomes in 1964-65 of taxpayers subject to provisional tax, i.e., incomes which were assessed to tax in 1965-66, rose by about 3.5 per cent, compared with the estimated increase of 7 per cent. Incomes of primary producers declined further than had been estimated while incomes of other individuals in business, the professions, Sc., increased less than had been estimated. Income tax collections from companies exceeded the Budget estimate by $15,105,000 because the tax available for collection on 1964-65 incomes and the proportion collected in 1965-66 exceeded the estimates made at the time of the Budget. These factors were partly offset by the fact that the amount of tax available for collection on previous years' incomes proved to be less than had been expected at Iiic time of the Budget. The large increase in other Trust Fund balances mainly reflected the higher level or income earned on the growing investments of the Trust Funds, (he realisation on stocks of metal for coinage, and a rise of about SK.000,000 in the balance of the Coinage Trust Account associated wilh the conversion to decimal currency PART C- LOAN RAISINGS AND REDEMPTIONS. Loan Raisings. During 1965-66, subscriptions lo the four Commonwealth public cash loans in Australia, after allowing for discounts in the issue price and including advance subscriptions received before 1st July, 1965, were $463,803,000. Proceeds of Special Bonds during the year were $80,426,000, while $55,159,000 were presented for redemption. Net proceeds of Special Bonds in 1965-66 were $25,267,000. The only public cash loan raised overseas in 1965-66 was issued in November. 1965. This loan was denominated in United States currency and raised mainly in Europe, lt was for an amount of SUS25*000,000 and yielded proceeds of $22,369,000. Details of new loans raised in Australia and overseas during 1965-66 may be found in Table No. 17 of the White Paper "Government Securities on Issue at 30th June, 1966". The amount available from public loans raised in Australia and overseas during the year, $566,598,000, fell short of the amount required to med the Commonwealth's commitments in respect of State works and housing programmes, redemptions and advances to the States for War Service Land Settlement. The Commonwealth therefore subscribed a special loan from the Loan Consolidation and Investment Reserve, the cash proceeds of which amounted to $168,760,000. The amounts referred to above do not correspond with the figure of $568,449,000 given in Part A of this Statement as the cash receipts from public loans during the year. The ma"m reasons are that cash receipts from public loans in 1965-66 exclude advance subscriptions brought forward from the previous year but include those received up lo 30lh *June,* 1966 in respect of the first cash loan to be issued in 1966-67. Moreover, some of the Special Bonds presented for redemption in 1965-66 were not, in fact, charged against the Budget until July, 1966. The cash receipts figures are also net of expenses incurred during the year in raising loans. The amounts borrowed by the Commonwealth in 1965-66 and the amounts available from these borrowings lo meet payments to the States in respect of their works and housing programmes and War Service Land Settlement, and redemptions, are summarised in the following table: - Drawings on the International Bank loan for the Snowy Mountains Hydro-electric Scheme totalled 815,299.000 in 1965-66. Expenditure on the Scheme charged to Loan Fund exceeded drawings by S701.000, so that there was a corresponding decrease in Loan Fund balances on this account. This arose from differences in timing between expenditures and drawings against the loan. Treasury Notes, which were first issued in July, 1962, continued on daily issue throughout 1965-66. The amount outstanding reached a peak of $314,436,000 in February, 1966. On 30th June, 1966, the amount outstanding was $116,096,000, or $35,664,000 more than a year earlier. In December, 1965 the Commonwealth raised a private loan in New York for aircraft financing purposes on behalf of Qantas Empire Airways Limited and the Australian National Airlines Commission (T.A.A.) of $US54,000,000 ($48,214,000), which is to be drawn by 31st December, 1967. During 1965-66, SUS33,750,000 ($30,289,000) was received as a result of drawings on this and two other loans which had been arranged on behalf of Qantas and T.A.A. since March, 1964. These proceeds were paid to Qantas and T.A.A. Redemptions. It was estimated in the Budget for 1965-66 that outlays on redemptions of securities maturing in Australia during the year, on repayments due in respect of loans repayable by instalments, on market purchases of securities for cancellation, and on other redemptions of overdue securities, &c, would total $270,000,000. This did not include provision for redemptions of Special Bonds, which were shown in last year's estimates as an offset to subscriptions. The table below, however, includes redemptions of Special Bonds in 1965-66. Estimated redemptions in 1965-66, including $50,000,000 for Special Bonds, were $320,000,000. Actual outlay on redemptions, *&c,* was $331,946,000. Public loan securities with a face value of $893,697,000, including $44,160,000 of Series A Special Bonds, matured in Australia during 1965-66. Holders of these securities were offered conversion into new public loan securities or into Special Bonds. At 30th June, 1966, matured securities totalling $705,841,000 had been converted, $184,357,000 had been redeemed and a balance of $3,499,000 remained outstanding. In addition. Special Bonds amounting to $44,822,000 were redeemed before maturing. Proceeds of cash public loans and Special Bonds issued during the year were -used to finance $66,983,000 of these redemptions and the balance of $117,374,000 was financed from the National Debt Sinking Fund. In addition to redemption of these maturing securities, the National Debt Sinking Fund spent a total of $25,355,000 in 1965-66 on market repurchases and redemptions of overdue securities, &c, in Australia. A loan of £slg9,41 5,0.00 matured in London in February, 1966 and was repaid in full at a cost of $23,608,000. Of this amount,. $20,060,000 (£slg8,000,000) was financed out of part of the proceeds of the cash loan which was raised in Australia in November, 1965. The remaining $3,548,000 (£stgl, 415,000) was redeemed by' the National Debt Sinking Fund. Repurchases in London, mainly of 31 per cent. September, 1966 and 3i per cent. August, 1969 stock, and other redemptions, involved expenditure of $14,702,000. Repurchases and redemptions by the Sinking Fund in New York and Canada were made at a cost of $19,786,000. In addition, an amount of $227,000 was spent from the Canadian Loan Trust Account on contractual repurchases of Commonwealth Bonds issued in Canada, as a result of which securities with a face value of SCan292,000 were repurchased and cancelled. Repayments to the International *Hunk,* which were also met from the Sinking Fund, cost $19,090,000 ($US2 1, 272,000) in 1965-66. Details of total outlay on redemptions in 1965-66 including redemptions of Special Rands are summarised in the following table: - In addition to the redemptions recorded above, public loan securities issued on account of the Commonwealth in Australia were reduced by $75,960,000 (face value) 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. A small amount of $9,000 of Commonwealth instalment stock issued in 1929 and 1930, under the Seat of Government Aci, *was* also redeemed from Consolidated Revenue Fund in 1965-66. Summary tables showing the various changes during 1965-66 in the amounts of Government Securities on issue in Australia and overseas are contained in the While Paper " Government Securities on Issue at 30th /une, 1966 ". STATEMENT No. 2.- SUMMARY OF BUDGET PROSPECTS, 1966-67 Incomes and expenditures in the economy arc expected lo rise more rapidly in 1966-67 than in 1965-66. A further substantial increase in employment, broadly similar in magnitude to the increase last year, is expected. Average earnings are expected to increase at a faster rate than in 1965-66; the recent addition of $2 a week to the Commonwealth basic wage will be a major factor contributing to this. A larger increase in total wage and salary earnings than in 1965-66, therefore, appears to be in prospect. Wilh the prospect of a faster rate of growth in wage and salary incomes and a better outlook for farm incomes, which fell heavily last year, total personal incomes can also be expected to increase more rapidly. This, it is expected, will be accompanied by a more rapid rate of increase in consumption expenditure and overall business activity. The increase in Commonwealth expenditure provided for in the Budget will, to the extent that it represents additional expenditure within the economy, be contributing to the rise in incomes and spending during the year. The prospective increase in Commonwealth Budget expenditures (excluding the effects of changes in accounting procedures) is greater than in 1965-66, when there was a recorded increase of $595,070,000. At the same time, a substantially smaller increase in Commonwealth Budget receipts than in 1965-66 is expected, a major reason for this being the fact thai additional revenue measures introduced in the last Budget contributed an estimated $140,000,000 to receipts in 1965-66. With a larger increase in expenditures and a smaller increase in receipts than in 1965-66, the excess of expenditures over receipts (the borrowing requirement) is expected to rise by 5282,063,000 *to* $533,145,000 in 1 966-67- which would be considerably greater than in any previous year. II is estimated that, in the absence of changes in accounting procedures, total Commonwealth expenditures would increase by about $600,000,000 to almost $« 980,000,000 in 1966-67. This would be larger than any previous increase. The main elements in the estimated increase in expenditures are: - Other Special Appropriations .. - 21,757 By far the largest component of the expected increase in expenditures is the estimated increase of $252,143,000 or 34 per cent, in expenditure on Defence Services. This comprises an additional $138,365,000 to bc met from appropriations and $113,778,000 to be financed under credit arrangements with the United Stales of America. The prospective increase includes an additional S96.454.000 for the Department of Air, an additional $76,791,000 for the Department of the Army and an additional $64,012,000 for the Department of the Navy. Payments to or for the States and State works and housing programmes are expected to increase by $145,070,000 to $1,861,153,000, which represents more than 30 per cent, of total estimated Commonwealth expenditure for 1966-67. Of this estimated increase, increased financial assistance grants are expected to account for $59,230,000, State works and housing programmes for $39,930,000 (after allowing for State domestic raisings), assistance to the States for education for about $21,100,000, drought assistance for $13,300,000 and Commonwealth aid roads grants for $10,000,000. The proposed extensions to social service and repatriation benefits announced in the Budget Speech are estimated to account for $39,204,000 of the estimated increased of $74,030,000 in these expenditures in 1966-67. Total expenditures on social services and repatriation benefits are expected *to* amount to $1,269,170,000 in 1966-67. Detailed explanations of the 1966-67 estimates of expenditure are set out in Statement No. 3. It is estimated that, in the absence of changes in accounting procedures, total Commonwealth receipts would amount to approximately $5,446,000,000 in 1966-67 or about $318,000,000 more than in 1965-66. Of this estimated increase, an additional $273,553,000 is expected to come from increased taxation collections, in respect of which the following comments can be made: - Details of the estimates of receipts for 1966-67 are set out in Statement No. 3. The increase in total receipts is estimated to be $282,063,000 less than the increase in total expenditures in 1966-67, so that the excess of expenditures over receipts - the amount to be mct from borrowings - is estimated to increase by this amount to $533,145,000. Towards this, there will be available an estimated $113,778,000 from drawings on the credits arranged for defence purchases in the United States of America. This would leave about $419,367,000 to be financed by other borrowings. At this stage any estimate of net loan raisings in 1966-67 is necessarily largely conjectural. However, on present indications, net loan raisings might be expected to decline by about $100,000,000 to approximately $150,000,000 in 1966-67. That would leave about $270,000,000 to be financed by temporary borrowings. The Budget prospects for 1966-67 are compared in the following table with the actual results for 1965-66. STATEMENT No. 3.- BUDGET ESTIMATES, 1966-67. ESTIMATES OF EXPENDITURES AND RECEIPTS 1966-67, COMPARED WITH ACTUAL RESULTS 1965-66. (Incorporating effects of Budget proposals.) NOTES ON ESTIMATES OF EXPENDITURES. Item No. 1. - Defence Services. *Estimated Expenditure* 1966-67, *Compared with Actual Expenditure* 1965-66. The main factors contributing to the variations between estimated expenditure in 1966-67 and actual expenditure in 1965-66 are: - Defence. - Expenditure is estimated to increase by $3,725,000 mainly as a result of an increase of $3,128,000 in Defence Aid lo Malaysia. Oilier major increases are $1,064,000 for administrative expenses, including an amount of $559,000 in respect of Russell Offices which was formerly shared by the Service Departments, and $613,000 for salaries. Expenditure on electronic data processing plant and equipment is estimated to decline by $961,000. Navy. - Tire estimated increase of $64,012,000 in 1966-67 reflects increases of $18,756,000 in expenditure on the purchase and construction of ships: $18,228,000 on the purchase of aircraft; $16,862,000 on general stores; $7,724,000 on pay, salaries and wages for R.A.N, personnel and civilian staff: $1,396,000 for administrative expenses; and $970,000 for the purchase of machinery and plant for naval dockyards and establishments. The major decreases are $934,000 for repairs and other charges for ships, aircraft, machinery and plant, and $525,000 for works carried out by the National Capital Development Commission in Canberra. Army.- Of the estimated increase of $76,791,000 in expenditure in 1966-67, $28,507,000 is provided for A.M.F. pay and civilian salaries to meet increased strengths and the basic wage increase. Provision has been made for increases of $20,734,000 foi' accommodation for the Regular Army, the Pacific Islands Regiment in Papua and New Guinea and National Service trainees; $12,699,000 for arms and equipment; $10,358,000 for expenditure on forces overseas in Vietnam and Malaysia; $4,247,000 for administrative expense's; and $1,826,000 for married quarters under the Hous ing Agreements between the Commonwealth and the States. Expenditure on acquisitions of land is expected to decline by $1,576,000. Air. - Expenditure is estimated to increase by $96,454,000 in 1966-67 mainly because provision has been made for increases of $64,676,000 in expenditure on aircraft purchase and manufacture; $19,049,000 for purchase of equipment and stores; $9,066,000 on R.A.A.F. pay and civilian salaries to meet increased strengths and the basic wage increase; $1,544,000 on R.A.A.F. forces stationed overseas; $1,180,000 for repairs to aircraft; and $966,000 on administrative expenses. Expenditure on housing is estimated to decline by $822,000. Supply.- Of the estimated increase of $8,636,000 in expenditure in 1966-67, $2,658,000 is provided for salaries, administrative and operating expenses: $2,381,000 for machinery and plant; $645,000 for reserve stocks; and $601,000 for the maintenance of production capacity of government factories. The requirement for new working capital in these factories in 1966-67 is estimated to be $1,979,000 less than in 1965-66. Net transactions on behalf of Other Administrations in 1965-66 resulted in a credit of $2,130,000; it is estimated that there will be net expenditure of $753,000 in 1966-67. Government Contribution to D.F.R.B. Fund. - The increase of $532,000 in 1966-67 mainly reflects increasing numbers to whom retirement benefits are payable. Development of Exmouth Township. - The higher provision of $2,748,000 in 1966-67 represents a portion of the increased grant to the Western Australian Government towards the cost of development of a township at Exmouth associated with the United States Communications Base at North West Cape. Item No. 2. - Payments to or for the States. This item includes payments in the nature of financial assistance to or for the States except payments to the States for the maintenance of tuberculosis hospitals, which are charged to the National Welfare Fund, and contributions towards the cost of development of an integrated township at Exmouth charged to Defence Services. It also includes some minor payments which are in the nature of reimbursements for expenditures incurred on behalf of the Commonwealth. Detailed comments on payments to or for the States are given in the White Paper "Commonwealth Payments to or for the States, 1966-67 ". Brief comments on the principal variations between estimated expenditure in 1966-67 and actual expenditure in 1965-66 are set out below. Financial Assistance Grants. - Under the provisions of the States Grants Act 1965, the financial assistance grant payable to each State in 1966-67 is determined by increasing the grant paid to that State in 1965-66 (with the addition of $2,000,000 to the grant paid to Queensland in that year) in accordance with a formula using estimated movements in the population of that State between 31st December, 1965 and 31st December, 1966, the increase in average wages for Australia as a whole between 1964-65 and 1965-66, and a "betterment" factor of 1.2 per cent. Preliminary estimates indicate that the financial assistance grants payable to the States in 1966-67 will total $816,581,000, or $59,230,000 more than the grants paid in 1965-66. The final determination of the grant payable to each State in 1966-67 will be made by the Commonwealth Statistician when the necessary data becomes available later in the year. Special Grants. - The Commonwealth Grants Commission has recommended special grants for the claimant States in 1966-67 totalling $40,072,000 compared with $41,770,000 in 1965-66. The Commission has recommended that Western Australia be paid $19,406,000 compared with $24,038,000 in 1965-66, and Tasmania, $20,666,000 compared with $17,732,000 in 1965-66. 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 $15,170,000 towards the interest payable on State 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 $1,284,000 in these contributions in 1966-67 reflects the growth in State debt. Financial Assistance for Universities. - As a result of the operation of legislation authorising the provision of financial assistance for universities in the 1964-66 triennium and in anticipation of decisions to be made in respect of the recommendations of the Australian Universities Commission for the 1967-69 triennium, an amount of $54,554,000 has been included in the 1966-67 Budget. This represents an increase of $7,776,000 over actual payments to the States in 1965-66. Grants to Colleges of Advanced Education. - lt is estimated that payments totalling $8,293,000, or $7,311,000 more than in 1965-66, will be made to the States in 1966-67 in respect of the recurrent and capital expenditures of Colleges of Advanced Education. This figure comprises the balance of the interim capita] grants approved for the 1964-66 triennium and an amount in respect of the recommendations of the Commonwealth Advisory Committee on Advanced Education for payments to the States in the 1967-69 triennium. Science Laboratories. - The States Grants (Science Laboratories) Act 1965 authorised a grant to the States of $29,717,400 spread proportionately over the three years commencing in 1965-66 to assist in the construction and equipping of science laboratories in secondary schools. Expenditure in 1966-67 is estimated at $10,176,000 which includes the undrawn portion of the 1965-66 appropriation. Technical Training.- The States Grants (Technical Training) Act 1965 provides for a grant of $30,000,000 spread proportionately over three years commencing in 1965-66 for the building and equipment costs of technical schools. Because expenditure in 1965-66 was less than one-third of the total provision, it is expected that expenditure will increase by $5,470,000 in 1966-67. Drought Assistance. - During 1965-66, the Commonwealth undertook to provide financial assistance to New South Wales and Queensland in respect of the total cost of such measures as each State considered necessary to relieve the effects of the drought. Under the States Grants (Drought Assistance) Act 1966, which gave legislative effect to this undertaking, $21,700,000 was paid to the States in 1965-66- $14,200,000 to New South Wales and $7,500,000 to Queensland. Of these payments, New South Wales received $8,668,000 and Queensland $3,326,000 in the form of interest-free advances; the remainder of the assistance was in the form of grants. It ls estimated that in 1966-67 a total of $24,250,000 will be paid under the Act- $15,000,000 to New South Wales and $9,250,000 to Queensland. Of these amounts, it is estimated that New South Wales will receive $10,000,000 and Queensland $6,000,000 in the form of advances. In addition, it is proposed to introduce legislation to authorise the payment of $8,000,000 to New South Wales and $2,750,000 to Queensland in 1966-67 to help these States to meet budgetary problems arising from the effects of the drought on State revenues. Altogether, therefore, it is estimated that $23,000,000 will be paid to New South Wales and $12,000,000 to Queensland by way of drought assistance in 1966-67. Agricultural Extension Services. - For the five year period, 1966-67 to 1970-71, the Commonwealth has undertaken to make available additional funds of up to $4,000,000 a year for the States' agricultural extension services. Payments to the States for this purpose in 1966-67 are expected to increase by $1,228,000 to $2,430,000. Brigalow Lands Development - Queensland. - Under the Brigalow Lands Agreement Act 1962- 1965, the Commonwealth agreed to provide financial assistance of up to $14,500,000 to Queensland for the development of approximately 5,000,000 acres of brigalow land (described as Areas 1 and 2) in the Fitzroy River Basin. The assistance is being provided by way of interest-bearing advances to cover expenditure by the State on certain specified works during the period of eight years ending on 30th June, 1970. Repayments are to commence in 1968 in respect of advances made prior to July, 1967, and in 1971 in respect of advances made during or after July, 1967. The Commonwealth recently undertook to provide Queensland with additional financial assistance for the development of further brigalow land described as Area 3, subject to the total assistance provided not exceeding $23,000,000 and legislation will be introduced in due course. In 1965-66, the amount advanced to the State for Areas 1 and 2 was $1,600,000, bringing total advances to $5,800,000. The amount provided for advances in 1966-67 is $2,500,000. Softwood Forestry. - The Commonwealth has offered financial assistance to the States on a repayable advance basis to encourage the planting of softwood forests. Payments by the Commonwealth in 1966-67 for this purpose are expected to total $2,490,000. Western Australia - Northern Development. - The Western Australia (Northern Development) Agreement Act 1963 provided for financial assistance to Western Australia of $7,000,000 for development of approved projects during the three years, 1963-64 to 1965-66. In 1965-66, an amount of $2,266,000 was provided under this Agreement, comprising $1,112,000 for the Ord River project and $1,154,000 (of which $577,000 is repayable with interest) for the Broome jetty works. Total payments have now reached the agreed amount of $7,000,000 payable to the State. No provision is, therefore, required in 1966-67. 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 is being 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 is, however, financing one-half of the cost in the form of repayable interest-bearing advances to the State. Payments to the State in 1965-66 were $5,581,000, and are estimated to be $6,300,000 in 1966-67. Commonwealth Aid Roads Grants. - The Commonwealth Aid Roads Act 1964 provides for the payment of a total amount of $150,000,000 to the States in 1966-67 for roads purposes - $132,000,000 as basic grants and $18,000,000 as additional grants. In 1965-66, road grants paid to the States totalled $140,000,000 of which $128,000,000 represented basic grants and $12,000,000 additional grants. Cattle Roads - Queensland. - Under the Queensland Beef Cattle Roads Agreement Act 1962 and further legislation introduced recently, the Commonwealth is providing financial assistance of up to $20,500,000 to Queensland for the construction and bitumen sealing of certain roads for the transport of beef cattle in that State. One-half of such assistance in excess of $3,400,000 is repayable with interest by the State and the balance of the assistance is being provided by way of grant. Payments of $16,000,000 were made by the Commonwealth to the State up to 30th June, 1966, and it is expected that the remaining payments of $4,500,000 will be made in 1966-67. Railway Projects. - Expenditure under this heading is estimated to increase by $742,000 in 1966-67. Under the Railway Agreement (Western Australia) Act 1961, financial assistance is being provided for the construction of a standard gauge railway from Kwinana to the iron ore deposits at Koolyanobbing and to Kalgoorlie. Payments amounting to $17,828,000 were made for this project in 1965-66, and it is estimated that $18,000,000 will be required in 1966-67. Work on the standardisation ofthe Port Pirie-Broken Hill railway is being carried out under the Railway Standardisation (South Australia) Agreement Act 1949. Expenditure under this Agreement amounted to $6,431,000 in 1965-66 and is estimated to be $7,000,000 in 1966-67. Coal Loading Works - New South Wales.Under the Coal Loading Works Agreement (New South Wales) Act 1961, the Commonwealth has provided financial assistance to New South Wales of $5,300,000, $3,300,000 by way of repayable interest-bearing advances from the Consolidated Revenue Fund and $2,000,000 by grants from the Coal Industry Fund of the Joint Coal Board, for improvements to coal loading facilities at Newcastle, Port Kembla and Balmain. Final repayable advances of $813,058 and final grants from the Coal Industry Fund amounting to $492,942, were made during 1965-66. Weipa Development - Queensland. - Under the Weipa Development Agreement Act 1965, the Commonwealth is providing financial assistance of up to $3,270,000 to Queensland by way of interestbearing advances to finance harbour works to be carried out at Weipa on Cape York Peninsula. Advances by the Commonwealth amounted to $2,717,300 in 1965-66, and provision has been made for payment of the balance amounting to $552,700 in 1966-67. Item No. 3. - Payment to National Welfare Fund. The National Welfare Fund Act 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 $941,574,000 in 1965-66 and, after taking account of the cost of the Budget proposals, is estimated at $1,019,844,000 in 1966-67. Detailed explanations of the estimated increase of $78,270,000 in expenditure from the Fund in 1966-67 are given in Statement No. 4 - National Welfare Fund Estimates, 1966-67. Item No. 4. - Debt Charges. The main variations between estimated expenditure in 1966-67 and actual expenditure in 1965-66 are explained below: - Sinking Fund. - Under the proposed revision of the National Debt Sinking Fund Act, a payment of $20,125,000 will be made from Consolidated Revenue to the National Debt Sinking Fund in 1966-67. The estimated payment is about $50,000,000 less than the amount payable under existing legislation, with a corresponding reduction in the income of the National Debt Sinking Fund (see Item No. 24 - National Debt Sinking Fund). Interest. - The estimated decrease of $224,000 in interest payable on overseas debt reflects an increase of $784,000 in interest payments on drawings made against the International Bank loan for the Snowy Mountains Hydro-electric Scheme, and decreases of $740,000 and $268,000 respectively, in interest payments on earlier International Bank loans and other overseas debt, the out standing amounts of which have been reduced as a result of redemptions and repayments by the National Debt Sinking Fund. The estimated decrease of $4,274,000 in interest payable on debt in Australia mainly results from cancellation of debt by the operations of the National Debt Sinking Fund and the Loan Consolidation and Investment Reserve. {:#subdebate-15-0} #### Item No. 5. - Other Special Appropriations Factors contributing to the more important variations between estimated expenditure in 1966-67 and actual expenditure in 1965-66 are: - Customs and Excise. - Following the Government's decision to continue the bounty on phosphate fertilisers at the previous rate, payments are expected to increase by $3,007,000 in 1966-67 because of increased sales of superphosphate. Cotton bounties payable under the Raw Cotton Act 1963-65 are estimated to be$586,000 less as final payments are not expected to be made during 1966-67 on the 1966 and 1967 crops.Initial bounty payments in respect of nitrogenous fertilisers are expected to amount to $4,750,000. Primary Industry. - Expenditure is estimated to be $5,635,000 greater in 1966-67. The higher return guaranteed to growers in respect of the 1965- 66 wheat crop is expected to result in an increase of $3,431,000 in the Commonwealth payment ($21,500,000) into the Wheat Prices Stabilisation Fund this year. Payments under the Poultry Industry Assistance Act 1965 are expected to increase by $3,298,000 to $9,000,000 mainly because of an increase in the rale of levy. It is expected that payments made under the Dried Vine Fruits Stabilisation Act 1964 ($1,005,000), and payments for wool promotion ($22,300,000) under the Wool Industry Act 1962-1964, will decline by $762,000 and $702,000, respectively. Trade and Industry.- An amount of $2,000,000 was provided in 1965-66 to increase the capital of the Export Payments Insurance Corporation. An amount of $250,000 is being provided in 1966- 67 for research and development in Australian secondary industry. Treasury. - It is estimated that total expenditure will be $30,918,000 less than in 1965-66. In 1965-66, $22,444,000 was paid to the International Monetary Fund in connexion with the recent increase of 25 per cent. in Australia's quota in the International Monetary Fund: no similar payment will be necessary this year. No provision has been made in the Budget for the financing of any purchases of Australian currency from the International Monetary Fund this year - in 1965- 66 two such purchases by New Zealand and India, each for the equivalent of $US10,000,000, resulted in payments totalling $17,857,000. Payments under the Currency Act 1965 in respect of the introduction of decimal currency arc expected to decrease by $1,517,000 to $17,733,000 this year. Expenditure under the States Grants (Petroleum Products) Act 1965, which came into operation in October, 1965, is expected to increase by $4,080,000 in 1966-67. The first instalment, amounting to $3,820,000, of the convertible currency portion of Australia's subscription to the capital stock of the Asian Development Bank will become payable in 1966- 67. It is expected that in 1966-67 Australia will be called upon to contribute to the International Development Association $1,176,000 more than last year. Commonwealth contributions to the Superannuation Fund are expected to be $997,000 greater than in 1965-66. Expenditure on gold mining industry assistance is estimated to increase by $900,000; the increase is largely attributable to liberalisations of the Gold-Mining Industry Assistance Act 1954-1965, which came into operation in 1965-66 but will affect payments in 1966-67. Item No. 6. - Departmental Running Expenses. Departmental Running Expenses comprise the annual expenditure on wages and salaries and administrative expenses of Civil Departments (excluding Business Undertakings, Defence Departments and expenditure in the Territories). Of the total estimated increase of $47,263,000 in Departmental Running Expenses, $11,209,000 is attributable to the recent increase in Third Division salaries (including retrospective payments for 1965-66) and $5,389,000 to the decision of the Arbitration Commission to increase the basic wage by $2 a week. Factors contributing to the more important variations between estimated expenditure in 1966-67 and actual expenditure in 1965-66 are:- Attorney-General's. - The estimated increase of $2,434,000 in expenditure in 1966-67 includes $898,000 to meet salary and staff increases. Of the balance of $1,536,000, $1,311,000 is attributable to accounting changes. Provision of $42,000 has been made for the new Office of the Commissioner of Trade Practices. Civil Aviation. - Expenditure is estimated to be $4,106,000 greater in 1966-67. Administrative salaries and expenses are expected to increase by $1,671,000 and the cost of the maintenance and operation of civil aviation facilities by $2,435,000. Commonwealth Scientific and Industrial Research Organization. - Expenditure is estimated to increase by $2,817,000 in 1966-67, of which $2,310,000 is for increased staff and salary payments and $507,000 for increased expenditure on other administrative expenses. Customs and Excise. - Expenditure is estimated to be $2,499,000 greater in 1966-67, of which salaries and additional staff account for $2,238,000. External Affairs. - The estimated increase in expenditure of $1,537,000 includes $1,101,000 attributable to increased staff and salary payments and $436,000 for other administrative expenses, including $158,000 for international conferences to be held in Australia. Health. - Expenditure is estimated to increase by $1,269,000, including $948,000 for staff and salary increases. Housing. - Expenditure is expected to increase by $535,000 mainly on account of increased salary and wage payments. Immigration. - The estimated increase in expenditure of $1,757,000 includes $985,000 for increased salaries and staff and $200,000 to provide for a change in an accounting procedure. Administrative expenses in Australia and at overseas posts are expected to increase by $572,000. Interior. - The estimated increase in expenditure of $4,025,000 includes $978,000 for increased salaries and staff and $1,884,000 for office accommodation and services, of which $815,000 arises from an accounting change in the treatment of telephone costs. An amount of $1,140,000 is included in the estimates of the Electoral Branch for the estimated cost of conducting the House of Representatives election later this year. Labour and National Service. - Of the estimated increase of $1,339,000, an amount of $1,153,000 is for additional salaries and staff. National Development. - Expenditure is expected to increase by $1,126,000, of which $516,000 is for salaries and additional staff, and $610,000 for administrative expenses, including $316,000 for accelerated topographic mapping of Australia and $240,000 for contract surveys, largely for the additional cost of phosphate search and the search for oil. Primary Industry, - Of the estimated increase in expenditure of $670,000, $650,000 is for additional staff and salary expenses. Prime Minister's. - The estimated increase of $2,721,000 in expenditure in 1966-67 includes increases of $1,621,000 in staff and salary expenses and $1,100,000 in administrative expenses, of which $575,000 relates to the Australian Security Intelligence Organisation and $227,000 to the Office of the Australian High Commissioner in London. Repatriation. - The expected increase in expenditure of $1,280,000 includes additional salary costs of $1,078,000. Shipping and Transport. - The estimated increase of $508,000 includes $333,000 for increased expenditure on salaries. Social Services. - Expenditure is estimated to increase by $1,304,000 of which $1,213,000 is to meet the cost of additional staff and salary increases. Trade and Industry. - The estimated increase in expenditure of $1,488,000 includes $707,000 for increased staff and salary payments, $430,000 for overseas trade promotion, and $279,000 for the Commercial Intelligence Service. Treasury. - The estimated increase of $11,106,000 in expenditure in 1966-67 includes $8,262,000 for increases in staff and salaries of which $1,878,000 is for additional positions required for the Taxation Branch and $765,000 for temporary staff for the 1966 Census. Administrative costs are estimated to increase by $2,844,000 of which $1,823,000 represents advances to the Commonwealth Electoral Office for the conduct of the 1966 Census. Works.- Of the estimated increase of $4,138,000 in expenditure in1966-67, $2,321,000 is attributable to increased staff and salaries and $1,297,000 to increased general administrative costs, including $801,000 for fees to private technical consultants, and $385,000 for travelling and subsistence. Expenditure on repairs and maintenance is estimated to increase by $225,000 and on furniture and fittings by $295,000. Item No. 7. - Other Services. Other Services includes expenditure on the activities of Government, other than those specifically provided for elsewhere (e.g., social services, Capital Works and Services, Payments to or for the States, and Defence Services) which are covered by Annual Appropriation Bills. Some of the more important factors responsible for variations between estimated expenditure in 1966-67 and actual expenditure in 1965-66 are: - Civil Aviation. - The estimated increase of $185,000 includes an additional $51,000 for flying training. External Affairs. - The estimated decrease of $5,124,000 is attributable to the expenditure in 1965-66 of $7,381,000 as the major portion of a non-recurrent gift of emergency food aid for India; provision has been made in the Budget for corresponding expenditure in 1966-67 of only $620,000, representing the balance of the gift. Expenditure under the Colombo Plan is estimated to increase by $1,245,000 in 1966-67. Health.- The estimated increase of $216,000 results from increases of $166,000 in the grant to the Commonwealth Council for National Fitness, $81,000 for Medical Research, $77,000 for the contribution to the World Health Organisation and $67,000 for a full year's contribution to the International Cancer Research Agency. Future expenditure on Sirex Wasp research and containment, which amounted to $200,000 in 1965-66, will be borne by the Department of National Development. Immigration. - The estimated increase of $1,549,000 is attributable to the provision of an additional amount of $1,571,000 for the costs of assisted passages for migrants. National Development. - The estimated increase in expenditure of $1,044,000 in 1966-67 mainly results from increases of $518,000 for oil search subsidies, $368,000 for the Australian Atomic Energy Commission and $200,000 for Sirex Wasp research and containment previously provided for under the Department of Health. Prime Minister's. - The estimated increase in expenditure in 1966-67 includes $4,913,000 for Commonwealth Scholarship Schemes, of which $2,250,000 is for Commonwealth University Scholarships; $1,268,000 for Commonwealth Secondary School Scholarships; $563,000 for Commonwealth Post-graduate Awards; $469,000 for Commonwealth Advanced Education Scholarships; and $363,000 for Commonwealth Technical Scholarships. Other increases include $1,877,000 for Australian participation in the Universal and International Exhibition, Montreal, 1967, $1,520,000 for the Australian National University, and $345,000 for the National Library of Australia. Shipping and Transport. - The estimated increase of $14,217,000 in expenditure in 1966-67 includes $13,799,000 for expenditure on ship construction by the Australian Shipbuilding Board (more than two-thirds of which is recoverable - see Item No. 23- Other Revenue) and $325,000 for the operating costs of the Commonwealth Bureau of Roads. Social Services. - Reflected in the estimated increase of $245,000 are additional amounts of $334,000 for grants under the Aged Persons Homes Scheme and $61,000 for telephone rental concessions for pensioners, partly offset by decreases of $127,000 in the provision for compassionate allowances and $40,000 in the contribution to the National Old People's Welfare Council. Treasury. - The estimated decrease of $428,000 reflects a non-recurring expenditure of $600,000 in 1965-66 for a working advance to the Royal Australian Mint Trust Account and increases of $77,000 in interest payable on trustee moneys lodged at call, and of $96,000 in remission of taxes and fines in special circumstances. Item No. 8. - Repatriation Services. Included in the proposed expenditure of $249,326,000 in 1966-67 is $5,637,000 to meet the estimated cost of the proposals announced in the *Budget* Speech. The cost of these proposals in a full year is estimated at $7,516,000. War and Service Pensions and Allowances. - The measures announced in the Budget Speech are estimated to cost $5,525,000 in 1966-67. But for the effects of the measures, there would be an estimated decrease in expenditure of $13,062,000 in 1966-67- a decrease of $15,580,000 attributable to the occurrence in 1966-67 of one less twelveweekly bank payment and one less fortnightly cheque payment than in 1965-66 being partly offset by expected additional pension costs of $2,518,000 which arise from an expected increase in the number of pensioners and from the full-year effects of the increased benefits granted during 1965-66. After allowance for the effects of the measures, expenditure in 1966-67 is estimated to decrease by $7,537,000. Repatriation Hospitals and Other Institutions. - The operating expenses of Repatriation hospitals, out-patient clinics, artificial limb centres and Anzac Hostels are estimated to be $1,658,000 greater than in 1965-66. Of this increase, $671,000 is attributable to the recent increase in basic wage and salary determinations, and $414,000 to the full-year cost of salaries and wages of staff appointed during 1965-66 and the cost of filling vacant positions in 1966-67. An increased requirement for general stores, mainly comprising replacements of unserviceable medical equipment, is expected to cost an additional $287,000 in 1966-67. An increased demand for services of medical specialists ($129,000) and a general rise in operating costs ($157,000), resulting from a greater number of in-patients, account for the balance of the expected increase. Other Repatriation Benefits. - The estimated increase in expenditure is $1,639,000, of which $112,000 represents the estimated cost in 1966-67 of the proposed increases in benefits. The balance of $1,527,000 largely reflects continuing growth in the numbers receiving medical and related treatment. This increase comprises $550,000 for higher costs of pharmaceutical services attributable to a continuing upward trend in the total number of prescriptions being written and a tendency for more costly items to be prescribed;$343,000 for increased costs of maintenance of patients in nondepartmental institutions; $307,000 to meet the cost of increased visits and consultations by medical personnel and the greater cost of ancillary medical services; $167,000 to meet the fullyear cost of extended eligibility for sustenance allowances approved in the 1963-66 Budget; and $160,000 for increased travel and incidental costs of the larger number of beneficiaries receiving treatment and assistance. Item No. 9. - Business Undertakings. The main factors responsible for variations between estimated expenditure in 1966-67 and actual expenditure in 1965-66 are: - Railways.- The estimated increase of $1,397,000 in expenditure in 1966-67 arises from additional costs associated with an expected rise in traffic volume and increased maintenance costs of tracks and other facilities. Post Office. - Salaries and wages are expected to increase by $17,376,000 in 1966-67, of which $8,000,000 is attributable to the cost of the basic wage increase and $4,560,000 to arbitration determinations (mainly Third Division); the balance of $4,816,000 relates to additional staff, the fullyear cost of staff engaged in 1965-66, and other increases in wages and allowances. Provision has been made for an increase of $2,660,000 in administrative expenses, mainly travelling and sub sistence, fuel, light and power and motor vehicle running costs and repairs. Expenditure on stores and materials is expected to increase by $2,458,000, most of which relates to the operation and maintenance of engineering service facilities. Broadcasting and Television. - Expenditure is estimated to increase by $3,767,000 in 1966-67. The costs of the Postmaster-General's Department for technical and other services are expected to increase by $993,000, almost entirely because of the opening of new television stations. The increase in respect of the Australian Broadcasting Commission is estimated to be $2,564,000 and includes $735,000 for television and radio relay facilities, $238,000 for overseas film rights and $939,000 for salaries and wages of which $447,000 is in respect of the basic wage increase. Item No. 10. - Territories. The main factors contributing to variations between estimated expenditure in 1966-67 and actual expenditure in 1965-66 are: - Australian Capital Territory. - The estimated increase of $3,218,000 in expenditure in 1966-67 reflects the continuing development of the National Capital. Provision has been made for additional expenditures of $717,000 for education, $570,000 for the operation of health services (mainly the Canberra Community Hospital), $432,000 for general services, $373,000 for the maintenance of parks and gardens, $238,000 for repairs and maintenance and $212,000 for the Australian Capital Territory Police. Christmas Island. - The estimated cost of administrative services for Christmas Island in 1966-67 is $241,000, and is recoverable from the Christmas Island Phosphate Commission and local revenue. The provision this year, for the first time, arises from a new form of budget presentation. (See also Item No. 22. - Territories receipts.) Northern Territory. - The requirements of the Northern Territory Administration account for $2,010,000 of the total estimated increase of $3,054,000 in 1966-67. The operation of health and public utility services will require increased expenditure of $533,000 and $97,000, respectively. The provision for repairs and maintenance and developmental services has been increased by $222,000. Papua and New Guinea. - The estimated expenditure of $70,933,000 relates almost entirely to the grant of $70,000,000 by the Commonwealth towards the budget of the Administration of the Territory. The increase of $8,000,000 in this grant will assist in the continued development of the Territory. Item No. 11. - Capital Works and Services.(a) ("Excluding Defence Works.) The main factors responsible for variations between estimated expenditure in 1966-67 and actual expenditure in 1965-66 are: - Civil Aviation. - The estimated increase of $932,000 in expenditure in 1966-67 relates mainly to increased expenditure on navigational aids and other equipment. External Affairs. - Expenditure is estimated to decrease by $810,000 in 1966-67. In 1965-66, there had been non-recurring expenditure of $465,000 on the purchase of an official residence for the Australian Ambassador in Bonn. The $951,000 provided includes $356,800 to complete the Chancery project in Djakarta and $103,000 to complete the Chancery project in New Delhi, neither of these projects having been completed in 1965-66 as planned, and $180,000 for further design work on the new Chancery in Washington. Housing.- The estimated decline of $11,750,000 in expenditure in 1966-67 is the net result of an expected decrease of $12,000,000 in expenditure on war service homes - resulting from the continued decline in the rate of receipt of new applications for loans and the elimination of the backlog of applications - and the provision of an additional advance of $250,000 to the Housing Loans Insurance Corporation to assist it in the carrying out of its statutory functions. National Development - Snowy Mountains Hydro-electric Authority. - Expenditure by the Authority is estimated to increase by $6,026,000 in 1966-67, mainly as a result of substantially increased payments to major contractors engaged in completing Stage 2 of the Snowy-Murray development, particularly in relation to the Murray 2 power station project. Heavier expenditure will also be involved in progress payments for electrical plant to be installed in the Murray 1 and Murray 2 stations. Provision has also been made for preliminary work on the Tumut 3 project. It is estimated that $4,446,000 of the total expenditure by the Authority in 1966-67 will be financed from drawings made on the International Bank loan of $US 100,000,000 for the Murray 1 project; withdrawal of the full amount of this loan should be completed early in 1966-67. National Development - Other Items. - The estimated increase of $624,000 in expenditure in 1966-67 is attributable to an increase of $306,000 in payments under the River Murray Waters Act 1915-1963, including the Commonwealth's contribution towards the cost of constructing the Chowilla Reservoir, and to additional requirements of the Bureau of Mineral Resources, the Division of National Mapping and the Forestry and Timber Bureau. Prime Minister's - Australian National University. - The grant to the Australian National University in 1966-67, in respect of the programme of capital works projects and research equipment for the 1964-66 and 1967-69 triennia, is expected to be $328,000 greater than in 1965-66. Shipping and Transport. - Expenditure is estimated to decrease by $909,000 in 1966-67. In 1965-66, the Australian Coastal Shipping Commis sion (the Australian National Line) was provided with a loan of $1,000,000; no provision for funds for the Commission is being made in 1966-67. Expenditure un the replacement of lighthouse supply vessels is expected to rise by $70,000 in 1966-67. Treasury. - It is estimated that expenditure in 1966-67 will decrease by $2,584,000. In 1965-66, there had been non-recurring expenditure of $2,758,000 on computer equipment. The provision of $961,000 for 1966-67 includes $326,000 for the Statistician's Branch to meet the balance of costs associated with the subsidiary computers in the States, as well as additional equipment ordered in 1965-66, $202,000 for plant and equipment for the Government Printing Office, including $100,000 for orders placed in 1965-66, and $433,000 for equipment and other items for Royal Australian Mint. Works - Civil Works Programme - Civil Aviation. - Expenditure on buildings and works is estimated to increase by $9,333,000 in 1966-67 as a result of major airport developments, including addtional amounts of $3,630,000 for the Sydney Airport project and $7,100,000 for Tullamarine Airport. Expenditure on other civil aviation works is expected to be $1,397,00 lower than in 1965- 66. Works - Civil Works Programme - Customs and Excise. - Expenditure is estimated to increase by $733,000 in 1966-67 largely because of increased requirements for the new Customs House in Melbourne. Post Office. - Expenditure is estimated to increase in 1966-67 by $21,547,000, of which $18,726,000 is for telecommunications equipment to meet increased requirements for subscribers' telephone services, trunk facilities and associated equipment. Expenditure on buildings, sites, and miscellaneous plant and equipment, including motor vehicles, is expected to increase by $2,821,000. Overseas Telecommunications Commission. - The advance of $2,500,000 is required to help finance the Commission's proposed capital programme in 1966- 67. Broadcasting and Television. - The estimated net decrease of $1,545,000 in expenditure in 1966-67 is mainly the result of an expected reduction of $2,158,000 in expenditure on transmission equipment associated with country television and medium frequency radio broadcasting and an expected increase of $660,000 in expenditure on buildings and works. Australian Capital Territory. - Expenditure is estimated to increase by $5,542,000 in 1966-67. An additional amount of $5,652,000 is provided for the National Capital Development Commission's programme, a total of $732,000 for additional advances to the Housing Commissioner and local building societies, and $188,000 for plant and equipment purchases for the Department of the Interior. These and other smaller increases are offset by certain decreases in expenditure including $711,000 in the provision for the Department of Health, mainly to develop the Canberra Community Hospital, and $360,000 in advances to the A.C.T. Electricity Authority. Northern Territory. - The 1966-67 provision for the Northern Territory is $9,522,000 greater than actual expenditure in 1965-66. This estimate includes increases of $3,723,000 for the Northern Territory Administration's works programme, and $1,598,000 for health services (principally development of the Darwin Hospital). An additional provision of $1,382,000 has been made for advances to the Northern Territory Port Authority. The provision ($3,170,000) for the beef cattle roads programme in the Territory is $890,000 greater than the provision ($1,260,000) for other roads, stock routes, and water supplies, $667,000 greater. Expenditure on plant and equipment for the Department of Works and the Administration is expected to increase by $699,000 and $246,000, respectively. Item No. 12.- State Works and Housing Programmes. At its meeting in June, 1966, the Loan Council approved a governmental borrowing programme for 1966-67 of which $645,000,000 was for State works and housing. The Loan Council also approved borrowing programmes of $267,000,000 for State semi-government and local authorities with programmes in excess of $200,000 in 1966-67, and $1,000,000 for Commonwealth authorities. The Loan Council decided that no overall limit should be placed on borrowings by authorities for which the Slate Governments approve programmes of not more than $200,000 in 1966-67. The approved allocations for State works and housing in 1966-67 compare as follows with the final allocations for 1965-66: - The resolution approving the above-mentioned allocation of $645,000,000 for State works and housing was supported by the Commonwealth on the understanding that the States would fulfil certain conditions designed to promote governmental loan raisings in 1966-67. For its part, the Commonwealth undertook - {: type="i" start="i"} 0. to leave to the States, lo the extent neces sary to complete the borrowing programmes for State works and housing purposes, the whole of the proceeds derived from public loan raisings in Australia (other than the proceeds of borrowings for temporary purposes) after deducting amounts required to meet encashments of Special Bonds and redemptions which cannot be financed out of the National Debt Sinking Fund; 1. to arrange, to the maximum possible ex tent, for the refinancing of maturing loans that may not be fully converted; and 2. to make monthly advances to the States for the first eight months of the financial year at an annual rate not exceeding $645,000,000, the position then to be reviewed and a tentative determination made, not later than 28th February, 1967, of the amount of special loan assistance the Commonwealth may provide from its own resources. State domestic raisings are estimated to produce $6,000,000 in 1966-67 which would leave $639,000,000 to be provided to complete this year's borrowing programme for works and housing purposes. This compares with $599,070,000 in 1965- 66. Details of the manner in which the State works and housing programmes have been financed since 1956-57 are given in the White Paper " Commonwealth Payments to or for the States, 1966- 67 ". Item No. 13. - War Service Land Settlement. Payments to the States under the States Grants (War Service Land Settlement) Act 1952-1953 are financed from loan moneys and amounted to $6,358,000 in 1965-66. Payments in 1966-67 are expected to total $6,750,000. A comparison, on a State basis, between actual expenditure in 1965-66 and estimated expenditure in 1966-67 is shown in the following table: - NOTES ON ESTIMATES OF RECEIPTS. After taking into account the proposed changes announced in the Budget Speech, total receipts in 1966-67 are estimated at $5,397,249,000 or $268,621,000 more than in 1965-66. Comparisons between the estimates for 1966-67 and actual figures for 1965-66 are affected by changes in accounting procedures, which had the effect of reducing the estimated increase in receipts by about $49,000,000. Brief explanations of the estimates for particular items follow. Item No. 14. - Customs Duty. Customs collections are estimated to increase by $15,639,000 in 1966-67 to a total of $288,000,000. Imports are expected to be higher than in *1965-66* and an increase is expected in the ratio of customs revenue to imports in 1966-67. Allowance has also been made for the full-year effects of the increased rates of duty imposed in the 1965-66 Budget. Item No. 15. - Excise Duty. Excise collections in 1966-67 are estimated to total $825,000,000, compared with actual collections of $751,238,000 in 1965-66. The estimated increase of $73,762,000 allows for increases in clearances of all the major products subject to excise duty. Allowance has also been made for the full-year effects of the increased rates of duty which were imposed in the 1965-66 Budget. Item No. 16.- Sales Tax. On the basis of existing legislation, it is estimated that collections of sales tax would amount to $400,000,000 in 1966-67, which is an increase of $30,610,000 on collections in 1965-66. Sales of most goods subject to sales tax are expected to increase in 1966-67. After allowing for the effects of the proposed changes announced in the Budget Speech, sales tax collections are estimated to amount to $399,200,000 in 1966-67, or $29,810,000 more than in 1965-66. Item No. 17. - Income Tax. lt is estimated that, on the basis of existing legislation, collections of income tax on individuals in 1966-67 would total $1,896,000,000, or $164,657,000 more than in 1965-66. As a result of expected increases in average earnings and employment in 1966-67 and the full-year effects of the 2i per cent, increase in the rates of tax in 1965-66, it is estimated that net " payasyouearn " collections would exceed those of 1965-66 by $164,631,000. As regards taxpayers subject to provisional tax, it is estimated that there was a further increase in the taxable incomes of business and professional, &c, taxpayers in 1965-66, but that this would have been largely offset by a further decline in incomes of primary producers. These income movements, together with a decline in tax which it is expected will be available for collection on incomes of earlier years, are expected to result in total cash collections from those taxpayers being almost the same as in 1965-66. The effect of the measures announced in the Budget Speech is to reduce the estimated amount to be collected from individuals in 1966-67 *to* $1,895,300,000 or $163,957,000 more than in 1965- 66. Collections of income tax from companies in 1966- 67 are estimated to amount to $770,000,000, which is $31,105,000 less than in 1965-66. A decrease in the incomes of companies subject to tax is estimated to have occurred in 1965-66. Dividend (withholding) tax is estimated to yield $17,500,000 in 1966-67, or $253,000 more than in 1965-66. Item No. 18. - Pay-roll Tax. Gross pay-roll tax collections are estimated to increase by $18,326,000 in 1966-67 as a result of higher average earnings and increased numbers in employment. Rebates payable to exporters in 1966-67 under the export incentive scheme are expected to increase by $1,269,000, so (hat net collections of pay-roll tax are estimated at $179,000,000 or $17,057,000 more than in 1965-66. Items Nos. 19 and 20. - Estate and Gift duties. Collections of estate and gift duties in 1966-67 are estimated at $40,000,000 and $6,500,000, respectively, compared with actual collections of $36,124,000 and $6,195,000 in 1965-66. Item No. 21. - Business Undertakings. The estimated increase of $1,690,000 in the operating revenue of the Commonwealth Railways takes into account expected growth, in the volume of traffic, particularly on the Central Australia and North Australia Railways. Post Office receipts are expected to increase by $33,490,000 as a result of growth in postal, telephone and telegraph business. Revenue from broadcasting and television services is expected to increase by $2,020,000 in 1966-67. Revenue from broadcast listeners' and television viewers' licence fees is expected to increase by $1,755,000 and miscellaneous revenue by $676,000, because of payments by commercial television licensees for the sharing of facilities with national stations. Item No. 22. - Territories. Territories revenue in total is expected to be $1 , 317,000 greater in 1966-67, including estimated increases of $720,000 and $279,000 in revenue in the Northern Territory and Australian Capital Territory, respectively, and the inclusion for the first time as a result of a new form of budget presentation of $319,000 revenue in Christmas Island. (See also Item No. 10 - Territories expenditure.) In the A.C.T., receipts from sales of government houses, from rates and repayments of housing loans, and from rentals are expected to increase by $1,010,000, $542,000, and $169,000, respectively, but receipts from premiums on lease sales are expected to decline by $1,566,000. The estimated increase for the Northern Territory includes $234,000 in receipts of the electricity undertaking and $126,000 from sales of government houses and repayments of housing loans. The estimate for Christmas Island represents the expected contribution by the Christmas Island Phosphate Commission and from local revenue towards the estimated cost of the Territory's administrative services and capital facilities in 1966-67. Item No. 23. - Other Revenue Of the estimated increase of $44,624,000 in Other Revenue in 1966-67, $32,450,000 is attributable to changes in accounting procedures. Under changes proposed in the National Debt Sinking Fund Act, repayments of principal in respect of war service homes loans, previously credited to the National Debt Sinking Fund, will be credited to Other Revenue. Such repayments are estimated to be $32,000,000 in 1956-67. In addition, revenue of the Commonwealth Scientific and Industrial Research Organisation, previously offset against expenditure of the Organisation, will be credited to Other Revenue in 1966-67. The amount involved is $450,000. The main factors responsible for other variations between estimated revenue in 1966-67 and actual revenue in 1965-66 are: - Civil Aviation. - Of the estimated increase of $2,108,000 in revenue for 1966-67, $2,062,000 is attributable to an expected increase in receipts from air navigation charges arising from increased air traffic and the increase in air navigation charges announced in the Budget Speech. The increase in charges is expected to add $400,000 to revenue in 1966-67 and $800,000 in a full year. Housing. - Revenue is expected to increase by $32,891,000, of which $32,000,000 is attributable to the accounting change outlined above. The remainder of the increase is mainly attributable to an increase in interest payments on advances outstanding under the War Service Homes Scheme. National Development. - The estimated increase of $4,466,000 results from an increase of $4,739,000 in receipts of the Snowy Mountains Hydro-electric Authority for electricity generated in the Snowy Mountains Scheme and a decline of $273,000 in miscellaneous receipts. Primary Industry. - The estimated increase ot $2,058,000 results from a net increase of *$2,* 126,000 in the proceeds from the levies and charges imposed upon various primary industries which are subsequently paid over to commodity boards or else transferred to Trust Accounts associated with the marketing and research arrangements, *&c,* for the relevant products, and a net reduction of $68,000 in other items. The levy designed to assist the poultry industry is expected to yield an additional $3,000,000; the livestock slaughter levies an additional $347,000; and the tax imposed on wheat for research an additional $209,000. Receipts from charges imposed under the Dried Vine Fruits Stabilisation Scheme, and from the tax imposed on the sale of shorn wool for purposes of wool promotion and research, are expected to decline by $762,000, and $701,000, respectively. Shipping and Transport. - The estimated increase of $11,923,000 in revenue for 1966-67 includes increases of $10,583,000 in receipts from sales of ships, $640,000 in interest payments by the States under railway standardisation agreements and $605,000 in the payment in the nature of a dividend by the Australian Coastal Shipping Commission. Treasury. - Under the Reserve Bank Act 1959- 1965, 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. Total payments in respect of these profits are expected to decrease by $5,070,000 in 1966-67. Interest and repayments in respect of advances to the States under the various Commonwealth and Stale Housing Agreements are estimated to be $361,000 greater in 1966-67 and interest on payments made under the Blowering Water Storage Works Agreement is expected to be $293,000 greater. Interest and profit on investments of the General Trust Fund are expected to increase by $251,000 in 1966-67. Navy. - The estimated decrease of $818,000 in 1966-67 is due to a reduction in repayments to revenue of moneys appropriated in former years and a reduction in proceeds from the sals of obsolete equipment. Army. - The estimated decrease of $832,000 in 1966-67 results from a reduction in repayments to revenue of moneys appropriated in former years and a reduction in proceeds from sales of obsolete stores and equipment. Air. - The estimated decrease of $2,686,000 in 1966-67 is duc to a reduction in repayments to revenue of moneys appropriated in former years. Item No. 24. - National Debt Sinking Fund. The receipts of the National Debt Sinking Fund, which amounted to $202,307,000 in 1965-66, are estimated to decline by $70,954,000 to $131,353,000 in 1966-67. The statutory percentage contributions payable by the Commonwealth out of the Consolidated Revenue Fund, which were $64,840,000 in 1965-66 and would have increased to about $70,000,000 in 1966-67 under the current legislation, are estimated to amount to $20,125,000 as a result of the proposed amendment to the National Debt Sinking Fund Act. This proposed amending legislation will also result in repayments of principal on loans on war service homes, which amounted to $31,045,000 in 1965-66 and are estimated at $32,000,000 in 1966-67, being paid into the Consolidated Revenue Fund instead of the National Debt Sinking Fund. Altogether, therefore, the proposed amendment is expected to reduce the receipts of the National Debt Sinking Fund by about $82,000,000 in 1966-67 as compared with the estimated receipts under existing legislation. Contributions by the Commonwealth and States in respect of State debt are estimated to increase by $5,910,000 to $88,413,000. Item No. 25. - Net Increase in Other Trust Fund Balances. Other Trust Fund balances of the Commonwealth increased by $47,120,000 in 1965-66 and are estimated to increase by $30,000,000 in 1966-67. In 1965-66, the investment incomes of tha Loan Consolidation and Investment Reserve and the National Welfare Fund amounted to $26,783,000 and $4,241,000, respectively. There) was also an increase of $8,417,000 in the balance of the Coinage Trust Account related to the introduction of decimal currency. In addition, there were increases of $3,386,000, $2,540,000 and $1,116,000, respectively, in the cash balances of the General Trust Fund (reflecting changes in investment in bullion), The Temple Society Fund and the Swiss Loans Trust Account; the cash balance of the Post Office Stores and Services Trust Account declined by $3,000,000. In 1966-67, the investment incomes of the Loan Consolidation and Investment Reserve and the National Welfare Fund are expected to amount to $30,000,000 and $4,284,000, respectively. The cash balance of the Swiss Loans Trust Account is expected to increase by $1,000,000. The cash balance of the Defence Factories Trust Account is expected to decline by $2,000,000, that of the Coinage Trust Account by $2,000,000, and that of the Temple Society Fund by $2,000,000. {: .page-start } page 50 {:#debate-16} ### STATEMENT No. 4.- NATIONAL WELFARE FUND ESTIMATES, 1966-67 In the following table, the estimated transactions of the National Welfare Fund in 1966-67 are compared with actual transactions in 1965-66. {: .page-start } page 50 {:#debate-17} ### RECEIPTS The National Welfare Fund Act requires an apppropriation 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 1966-67 is estimated to increase by $78,270,000, a corresponding increase is expected in the moneys received by the Fund from Consolidated Revenue. With the inclusion of an estimated increase of $43,000 in interest received from the investment of the balance in the Fund, total receipts of the National Welfare Fund in 1966-67 are estimated at $1,024,128,000 or $78,313,000 more than in 1965-66. {: .page-start } page 50 {:#debate-18} ### EXPENDITURE It is estimated that expenditure from the National Welfare Fund will increase by $78,270,000 to $1,019,844,000 in 1966-67. The proposals announced in the Budget to increase and widen the scope of existing benefits, to ease the means test for pensioners with children, and to remove the nationality requirements for pensions, accounts for S33,567,000 of the overall increase of $78,270,000. It is estimated that the cost of these proposals in a full year would be $50,150,000. Hie proposed increases in the rates of age, invalid and widows' pensions and tuberculosis allowances are estimated to cost $28,710,000. The cost of the increase in the rates of hospital benefit in respect of pensioners enrolled in the Pensioner Medical Service and chonically ill patients is estimated at $3,320,000. The estimated cost of the proposed removal of the nationality provisions of the Social Services Act is $480,000. The proposed widening of the Aged Persons Homes Scheme to include nursing home beds is expected to result in additional expenditure of $400,000 on nursing home benefit. Comments on those items of expenditure which are expected to vary substantially from actual expenditure in 1965-66 are set out below. Age and Invalid Pensions. - Expenditure in 1966-67 is expected to increase by $35,266,000. The estimated cost of the proposed increases in the rates of pension is $26,000,000 and the proposed removal of the nationality requirements is expected to cost $430,000. Other Budget proposals affecting age and invalid pensions are estimated to cost $191,000, the bulk of which relates to the proposal to pay a pension to a pensioner on his discharge from a mental institution for up to twelve weeks (instead of four weeks at present) of the period spent in the institution. Approximately $6,600,000 of the estimated increase arises from an increase in the number of pensioners and the remainder of about $2,000,000 reflects the fullyear effect of the new and increased benefits granted in 1965-66. Widows' Pensions. - The estimated increase of $4,409,000 includes $2,650,000 to provide for the proposed increase in the rates of pension and an amount of $276,000 for other Budget proposals, principally the easing of the means test provisions for pensioners with children. The balance of $1,483,000 is mainly attributable to an increase in the number of pensioners. Child Endowment. - Of the estimated increase of $23,068,000 required for this benefit, approximately $19,800,000 is to provide for an additional payment to bank accounts in 1966-67. Five such payments will occur in 1966-67 compared with four in 1965-66. The balance of the prospective increase results from the growth in the number of endowed children. Unemployment and Sickness Benefits. - Expenditure is estimated to increase by $378,000, of which $135,000 is to provide for the proposed payment of sickness benefit to discharged mental patients for up to twelve weeks of the period spent in a mental institution. The total provision of $15,935,000 for these benefits in 1966-67 includes an amount of $8,000,000 for unemployment benefit; the approximate cost of this benefit in 1965-66 was $7,800,000. Hospital Benefits. - Expenditure in 1966-67 is estimated to increase by $5,950,000, of which $3,320,000 relates to the proposal to increase the amounts of benefits payable in respect of hospital patients enrolled in the pensioner medical service and the chronically ill. Approximately S 2,000 ,000 of the remainder is to provide for additional numbers of pensioners eligible for free hospital treatment, mainly because of the widening of the field of eligibility of the pensioner medical service during 1965-66. Nursing Home Benefit. - Of the estimated increase of $1,797,000 in 1966-67. an amount of $400,000 relates to the proposal to subsidise, within limits, nursing home accommodation under the Aged Persons Homes Act. The balance is attributable to an expected continuation of the upward trend in the number of private nursing home beds becoming eligible for benefit during the year. Pharmaceutical Benefits for Pensioners. - Expenditure is estimated to increase by $4,979,000, of which approximately $2,400,000 is to provide for the increase in numbers of pensioners qualifying for benefits as a result of the extension of tha pensioner medical service in 1965-66. The remainder of the increase is attributable to the greater utilisation of benefits and to changes in the types of drugs available. Medical Benefits. - The estimated increase in expenditure of $2,218,000 in 1966-67 is mainly attributable to a continuation of the upward trend in numbers of persons qualifying for benefits through membership of medical benefit organisations and an increase in the rate *of* utilisation r-f services. Medical Services for Pensioners. - Expenditure in 1966-67 is estimated to increase by $1,385,000 mainly because of the widening of the field of eligibility for the pensioner medical service during 1965-66. Milk for School Children. - The estimated increase of $807,000 in the cost of providing milk for school children in 1966-67 arises from an expected increase in the number of children participating in the scheme and an increase in tha price of milk in New South Wales. Tuberculosis Medical Services and Allowances. -The estimated decrease of $2,820,000 results mainly from a change in 1965-66 in the method of reimbursing the New South Wales Government for expenditure under the Tuberculosis Act. An additional non-recurring payment of $2,700,000 was made in 1965-66 to bring payments to New South Wales on to the same basis as payments to other States. The proposed increases in tuberculosis allowances and payment of allowances to voluntary patients in mental institutions, announced in the Budget, is expected to cost $75,000 in 1966-67. Homes Savings Grants. - The estimated decrease in expenditure of $646,000 for 1966-67 is mainly due to the lower number of applications for grants on hand at the close of 1965-66 compared with those outstanding at 1st July, 1965. {: .page-start } page 52 {:#debate-19} ### OUTLINE OF COMMONWEALTH SOCIAL AND HEALTH SERVICES. 1966-67 («) Supplementary assistance at a maximum rate of $2 a week is payable, subject to a means test, to single pensioners and to married pensioners (where the wife receives a wife's allowance) who pay rent. (W A guardian's allowance of $4 a week is payable to single age and invalid pensioners with dependent children. (<) An additional $10 is payable for each additional child born at a binh. CO A funeral benefit of up to $20 is payable to a person who meets the funeral costs of a deceased age or invalid pensioner. From 1st October, 1965, where an age, invalid or widow pensioner, or woman receiving a wife's allowance, meets the funeral costs or another pensioner or those of a spouse or dependent child, the maximum rate of benefit has been $40. STATEMENT No. 5.- SUMMARY OF BUDGET RESULTS, 1951-52 TO 1965-66, AND 1966-67 (ESTIMATED). The table on pages 55 anil 66 is designed to show the Commonwealth Budget results for the financial years 1951-52 to 1965-66, inclusive, in the same form as is used in presenting the estimates for 1966-67. Numerous changes have been made in the financial accounting arrangements of the Commonwealth Government since 1951-52. The figures for earlier years have been adjusted so as to produce the greatest practicable degree of consistency but it has not been possible to remove all inconsistencies. The more important ones that remain arise from accounting changes made in 1963-64 and in the estimates for 1966-67. In 1963-64, credits amounting to $44,034,000 which, in previous years, had been offset against expenditure, were paid to revenue. The estimates for 1966-67 reflect the proposed revision of the National Debt Sinking Fund Act; estimated expenditures in 1966-67 have been reduced by abou. $50,000,000 on account of this while, on the receipts side, a reduction of $82,000,000 in the estimated income of the National Debt Sinking Fund is offset by an addition lo Other Revenue to the extent of $32,000,000. Other inconsistencies remaining do not involve substantial sums and are unlikely to affect significantly the comparability of the figures. Many of the figures included in the table differ from those which appeared in the various Budget documents for earlier years. The following notes explain the content of particular items and the adjustments which have been made to the more important figures previously published. EXPENDITURES. Expenditures exclude redemptions of savings certificates and treasury bills, &c, us well as redemptions of other public debt of the Commonwealth. They also exclude transfers made to Trust Accounts such as, for example, the Loan Consolidation and Investment Reserve and the Debt Redemption Reserve. The figures for the years prior to 1960-61 have been adjusted to include the so-called " self-balancing items " which were not then included on either side of the account. These " self-balancing items " mainly represent taxes and charges on commodities, the proceeds of which are appropriated for expenditure for specific purposes. To accord with the treatment adopted for 1966-67, Commonwealth expenditures on State railway projects have been included in the figures of Payments to or for the States in all earlier years. {:#subdebate-19-0} #### Defence Arrangements have been entered into for the purchase of defence equipment on credit in the United States of America. It is estimated that the amount of credit to be utilised in 1966-67 will be $113,778,000. This sum has been included in the estimate of expenditure on Defence Services and also as a separate item under Borrowings. {:#subdebate-19-1} #### State Works and Housing Programmes The figures for State works and housing programmes are net of the amounts which the States themselves raised by way of domestic loans. As such, they represent the amount actually paid out of Loan Fund by the Commonwealth in respect of these programmes. Details of the total works and housing programmes in each year are set out in Table No. 39 of the White Paper " Commonwealth Payments to or for the States, 1966-67 ". {:#subdebate-19-2} #### Receipts As with expenditures, the figures of receipts for the years prior to 1960-61 have been adjusted to include the so-called " self-balancing items " for those years. The figures for Other Revenue (in all years) and for receipts of Business Undertakings (in 1962-63 and 1963-64) include transfers of unrequired Trust Fund Balances. {:#subdebate-19-3} #### National Debt Sinking Fund The figures published in the Annual Reports of the National Debt Commission have been adjusted to exclude the special payment from the Consolidated Revenue Fund to the National Debt Sinking Fund in 1951-52, and also the proceeds from various International Bank loans which were credited to the Sinking Fund prior to 1959-60. The estimate for 1966-67 reflects the proposed revision of the National Debt Sinking Fund Act. Net Movement in Other Trust Fund Balances. This item comprises the movements in the cash balances of Trust Fund less expenditure on redemptions from the Canadian Loan Trust Account. In recent years, the number of Trust Funds and the scope of the financial transactions carried out through Trust Funds have been considerably reduced so the movements in balances now reflect mainly the investment incomes of the Loan Consolidation and Investment Reserve and the National Welfare Fund, less unrequired balances in other Trust Funds transferred to revenue. {: .page-start } page 54 {:#debate-20} ### BORROWINGS {:#subdebate-20-0} #### Loan Proceeds The figures of loan proceeds are the actual cash proceeds from loans, &c, credited to Loan Fund in each year less loan flotation expenses, &c, incurred net of amounts recovered from the States during the year. The figures for loan proceeds in Australia include the gross proceeds derived from the issue of Special Bonds since 1958-59; they do not include the amounts subscribed by the Commonwealth to special loans or to public loans (as occurred in 1954-55 and 1955-56). Oversea "refinancing" operations are treated in this table as adding to both loan proceeds and redemptions where they involved receipts into Loan Fund and outlays from Loan Fund. As a result, total loan proceeds and total redemptions are increased compared with the figures published previous to 1965-66 for the years in question; net loan proceeds are not affected. {:#subdebate-20-1} #### Redemptions This item consists of outlays incurred in reducing the amount of funded debt (that is, public debt other than temporary borrowings by way of Treasury Bills and Treasury Notes) outstanding, in Australia and overseas, including redemptions of Special Bonds. It includes all outlays on redemptions, repurchases and repayments from the National Debt Sinking Fund (except outlays on the reduction of temporary debt, for example, Treasury Bills and Debentures domiciled in London from 1951-52 to 1955-56, inclusive) and all outlay redemptions, &c, from Loan Fund and from the Consolidated Revenue Fund and the Canadian Loan Trust Account. Net Movement in Temporary Borrowings. The figures for the years from 1951-52 to 1955-56, inclusive, include movements in the unfunded debt (Treasury Bills and Debentures) then domiciled in London. SUMMARY OF BUDGET RESULTS, 1951-52 TO 1965-66, AND 1966-67 (ESTIMATED). Summary of Budget Results, 1951-52 to 1965-66, and 1966-67 (Estimated) - continued. STATEMENT No. 6.- THE BUDGET IN NATIONAL ACCOUNTS FORM. RECEIPTS AND OUTLAY OF COMMONWEALTH GOVERNMENT. Receipts and Outlay of Commonwealth Government - continued. 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, subject to one qualification, 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. However, overseas defence procurement expenditure is included in the war and defence figures in the table on a payments basis rather than on the deliveries basis which is now used by the Commonwealth Statistician in the White Paper. The table compares the actual outcome in 1965-66 with the Budget estimates for that year, with the actual outcome for 1964-65 and with the prospective outcome for 1966-67 implied by the present Budget estimates. A Supplement to the Treasury Information Bulletin entitled " National Accounting Estimates of Public Authority Receipts and Expenditure ", being published concurrently with the Budget, provides additional information on a number of aspects of the national accounting presentation employed in this Statement, including in particular the war and defence figures in the foregoing table and the breakdown between overseas and domestic expenditures set out later in the Statement. It also reproduces the figures in the table, provides comparable figures for earlier years from 1953-54 onwards and, for the same years, provides national accounting figures for Commonwealth authorities outside the Budget and consolidated figures for the entire Commonwealth Government sector. BUDGET RESULTS, 1965-66. Net direct expenditure on goods and services from the Budget in 1965-66 totalled $1,448 million, $32 million less than the Budget estimate but $195 million more than in 1964-65. Current expenditure on goods and services was $162 million more than in 1964-65, and fixed capital expenditure on new assets and increase in stocks was $33 million greater than in 1964-65. An amount of $123 million of the total $162 million rise in current expenditure was in respect of war and defence. Cash benefits to persons in 1965-66 amounted to $1,158 million, $1 million less than the Budget estimate but $76 million more than in 1964-65. Grants to States at $1,077 million, were $8 million more than estimated in the Budget and SI 19 million greater than in 1964-65. Oversea grants were SI 18 million in 1965-66, $15 million more than the Budget estimate and $23 million above 1964-65. Subsidies amounted to $127 million. $2 million below the Budget estimate and $41 million greater than in 1964-65. Grants towards private capital expenditure, at $47 million, were £10 million below the Budget estimate but $21 million above 1964-65. Including interest paid, total expenditure in 1965-66, at $4,384 million, was $25 million less than the Budget estimate but $494 million more than in 1964-65. After account is taken of net loans for capital works and housing through the Budget to the States and others, which at $656 million were $28 million more than the Budget estimate and $13 million more than in 1964-65, total outlay in 1965-66 was $5,040 million. This was $3 million more than estimated in the Budget and $507 million more than in 1964-65. Total taxation receipts in 1965-66 were $4,188 million, $125 million less than had been estimated in the Budget but $400 million more than in 1964-65. 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 1965-66 was $242 million. This was $135 million more than had been estimated in the Budget and $71 million more than the net increase in indebtedness in 1964-65. BUDGET ESTIMATES, 1966-67. Net direct expenditure on goods and services from the Budget in 1966-67 is estimated to total $1,794 million, $346 million more than in 1963-66. Current expenditure on goods and services is estimated to be $1,440 million, $303 million more than in 1963-66, and fixed capital expenditure on new assets and 'increase in stocks is estimated at $354 million, $41 million more than in 1963-66. Of the $303 million rise in current expenditure, $249 million is estimated to occur in the war and defence item. Cash benefits to persons in 1966-67 are estimated to total $1,234 million, an increase of $76 million on 1963-66. Grants to States are estimated to be $1,178 million, $101 million more than in 1965-66. Subsidies are estimated to increase by $22 million, to $149 million. Including interest paid, oversea grants and grants towards private capital expenditure, total expenditure in 1966-67, at $4,970 million, is estimated to be $586 million greater than in 1965-66. After account is taken of net loans for capital works and housing through the Budget to the States and others, which in 1966-67 are estimated to total $697 million, or $41 million more than in 1965-66, total outlay in 1966-67 is estimated to be $5,667 million. This would be an increase of $627 million over total outlay in 1965-66. lt is estimated that total taxation receipts in 1966-67 will be $4,463 million, or $275 million more than in 1965-66. Public enterprises income is estimated to be S161 million in 1966-67, $9 million above the 1965-66 level. After interest, rent and dividends received and the proceeds of net sales of existing assets have been allowed for, it is estimated that the net increase in indebtedness in 1966-67 will be $549 million, $307 million more than the net increase in indebtedness which occurred in 1965-66. THE INITIAL IMPACT OF THE BUDGET. The effects of a Budget upon an economy are extremely complex. Changes in both the size and composition of expenditures and revenues can induce changes in expenditures and incomes within the economy as a whole. Moreover, changes in the economy emanating from other influences, whether domestic or external, can bring about changes in budgetary receipts and expenditure. The national accounting presentation of the Budget set out in this Statement seeks to provide a basis, when taken in conjunction with data relating to other areas of the economy, for assessing likely economic developments in the period ahead, lt is, however, but one piece of the jig-saw; taken alone, it can yield useful guidance as to the " initial impact " of the Budget but it cannot in itself, indicate whether that " initial impact " will, in conjunction with other forces operating or likely to operate in the economy, prove appropriate to the objective of maintaining full employment within the context of a growing economy. There are, moreover, some adjustments which need to be made to the table on page 57 if it is to be used for this purpose. In particular, the outlays shown in that table include substantial payments overseas which do not generate employment and incomes in Australia. While, in any longer-term assessment, the balance of payments implications of such expenditures are relevant to the future growth of employment and incomes in Australia, nevertheless in order to assess the initial impact of the Budget on the domestic economy in the year ahead it is necessary, so far as practicable, to distinguish domestic from overseas outlays. Th; following summary table shows the changes in the major national accounting aggregates after excluding outlays made (or to be made) directly overseas: - Net expenditure from the Budget on goods and services within Australia increased by $169 million in 1965-66, and is estimated to increase by $218 million in 1966-67. These expenditures, although excluding direct payments overseas by the Commonwealth, may still add indirectly to overseas rather than Australian incomes, e.g., Australian suppliers may meet orders via imports or their output may include some import content. lt is not possible to make reliable estimates of that import component. However, its relative importance, unlike that of direct payments overseas by the Commonwealth, may be assumed to bc unlikely to change markedly in the year ahead. The estimated increases in direct domestic expenditure on goods and services by the Commonwealth will therefore add substantially more to Australian incomes in 1966-67 than they did in 1965-66. Transfer payments from the Budget to recipients within Australia (part of which will be saved, rather than spent) increased by $281 million in 1965- 66, but are estimated to increase in 1966-67 by only $224 million. Net loans for capital works and housing within Australia, after increasing by $18 million in 1965-66, are estimated to increase by S3 3 million in 1966-67. Total domestic outlays from the Budget are thus estimated to increase by $475 million in 1966- 67, somewhat more than the increase of $468 million that occurred in 1965-66. Within these totals, however, direct expenditure on goods and services accounts for an appreciably larger proportion of the estimated 1966-67 increase than of the increase in 1965-66. Such expenditure has a greater initial impact upon expenditure and incomes within the economy than an equivalent amount of transfer payments, some of which, as noted above, may be saved by the recipients. While, therefore, the precise effects of the increase in outlays estimated for 1966-67 is necessarily conjectural to some extent, there seems little doubt that the resulting increase in demand for goods and services within Australia should be greater in 1966-67 than it was in 1965-66. In order to assess the initial impact of the Budget as a whole, however, it is necessary to consider also the effects of Budget receipts. Total receipts from taxation, interest, rent and dividends, the income of public enterprises and net sales of existing assets increased by $436 million in 1965-66; but are estimated to increase by only $320' million in 1966-67. The excess of domestic outlays over total receipts, described in the table above as the net increase in indebtedness in respect of outlays within Australia, is therefore expected to increase by $155 million between 1965-66 and 1966-67, compared with an increase of only $32 million between 1964-65 and 1965-66. Increases in Budget receipts, however, can arise from a number of different causes, and the economic significance of such increases (and hence of changes in the excess of outlays over receipts) may differ considerably from case to case. Clearly, any such differences will be relevant in assessing the initial impact of the Budget. The following broad impressions of these aspects so far as 1966-67 is concerned may be sufficient to indicate that such considerations will be important in the current year. Consider first the items of indirect taxes, public enterprises incomes, and the P.A.Y.E. component of income taxes on persons. Receipts from these items increased by $328 million in 1965-66 and are estimated to increase by rather less ($311 million) in 1966-67. Moreover, the effects of increases in rates of taxation and charges (including also the residual "full year" effects of measures introduced in 1964-65) account for about $140 million of the increase in 1965-66: in 1966-67 only about $40 million of the estimated increase in these revenues derives from those causes (in this case, the residual " full year " effects of the 1965-66 increases in rates of taxation). The remainder of the increases which took place or, in the year ahead, seem likely to take place result from the actual or prospective increases in economic activity in those years. Increases in revenue generated by accompanying trends in the economy, however, unlike increases which occur independently of those trends (in particular, those resulting from changes in rates of taxation, &c), do not offset any initial impact of increased expenditures which set in motion the generation of additional incomes. Rather, increases in revenue of this type will occur as a result of any expansion of economic activity stemming from the initial change (and will affect the extent of the "multiplier" effects involved). Consequently these increases may be disregarded in assessing the extent of the initial impact of the Budget. Only the effects on spending of those increases occurring independently of trends eventuating in the economy are to be offset initially against additions to demand arising from increases in outlay.! ti Those effects will, of course, depend upon, among other things, the extent to which such increased revenues result in some reduction in saving, as well as spending, by those taxpayers sustaining them. So far as the group of revenue items considered above is concerned, therefore, the amounts whose effects might be offset against those of increases in outlay in assessing the initial impact of the Budget on expenditure and incomes within Australia are, as noted above, estimated to show an increase in 1966-67 of only $40 million - that is, some $100 million less than the corresponding increase in 1965-66. ( ') There are grounds for arguing, in the context of calculations of this kind, that changes in revenues in a particular year which arise simply from the residual " full year " effects of changes in rates of taxation or charges in the preious vear should also be disregarded, on the basis that the rate changes in the previous year will have already been fully reflected in the flows of disposable incomes. On theoretical grounds such an approach is probably to be preferred. Within the (somewhat artificial) framework of comparisons of financial years which is necessarily employed in these calculations, the adoption of that approach would, however, create certain problems of consistency (e.g., with the outlay figures) which are avoided by the approach adopted in the text. Nonetheless, the point is one to be borne in mind by way of qualification to the figuring here used. *See ako* the Supplement to the Treasury Information Bulletin on National Accounting Estimates of Public Authority Receipts and Expenditure being published concurrently with the Budget, footnote ('), page 12. By contrast with the revenue items considered so far, collections of income taxes on companies and of provisional tax on persons whose incomes are subject to provisional tax are principally related to incomes in the year prior to the collection of the tax.d) Revenue collections under these headings are therefore largely independent of economic trends occurring during the year of collection. Increases (or decreases) in such collections during a year take place largely regardless of the changes in economic activity in that year, and their effects on spending by the taxpayers concerned may be regarded as offsetting any initial impact upon expenditure and incomes stemming from other causes. Their relative effects on spending and saving are, however, more uncertain than those of the revenue items considered earlier, particularly insofar as they relate to business rather than personal decisions. While therefore it would be appropriate to offset the effects on spending of any increase in these revenues against the effects of increases in outlay in order to assess the initial impact of the Budget, it must be said that the former effects in particular are incapable of precise assessment. As one guide to their possible magnitudes, however, it may be noted that collections of company tax and provisional tax increased by $84 million in 1965-66, but are estimated to fall by $31 million in 1966-67. It will be clear from the foregoing that calculations of this kind do not partake of the nature of an exact science. They may, however, enable some broad impressions about the impact of the Budget to be formed. As shown in the table on page 59, the net increase in indebtedness in respect of outlays within Australia is expected to rise in 1966-67 by $123 million more than it rose in 1965-66. Prima facie, this indicates that the 1966-67 Budget should impart a greater stimulus to the economy than the Budget of 1965-66. However, as was noted in the first of the Supplements to the Treasury Information Bulletin on National Accounting Estimates of Public Authority Receipts and Expenditure (published in conjunction with the 1964-65 Budget), whether or not, "by comparison with the previous year, the Budget has given a stimulus to economic activity or the reverse " is not a matter " to be arrived at simply by comparing the figures (for the net increase in indebtedness) for the two years ".(2) In particular, as noted earlier the Budget outcome reflects not only the influence of the Budget on the economy but also, especially in respect of the revenue items (and hence the net increase in indebtedness), the influence of the economy on the Budget. Although, as a result, any calculations of the initial impact of the Budget will necessarily be very imprecise (and, taken alone, will not themselves provide adequate guidance to future movements in the economy as a whole), the figuring suggests little doubt that the initial impact of the 1966-67 Budget upon incomes and demand within Australia will be greater than that which arose from the transactions of the Commonwealth in 1965-66 - perhaps more so than the respective changes in the net increase in indebtedness in those years would suggest. The effect of a Budget upon the economy is not, of course, confined to its (net) initial impact (however that may be calculated); there are, among other things, the well-known " multiplier " effects. No precise calculations of those effects are feasible; but, to the extent that the initial impact of the 1966-67 Budget upon the economy is greater than that of its predecessor, such " multiplier " effects will add to that difference. RECONCILIATIONS. The following tables show how the figures contained in the table on page 57, and particularly the figure for the net increase in indebtedness, may be reconciled with those given in Statements Nos. 1 and 2, and with figures in the White Paper " National Income and Expenditure 1965-66 ". (') Subject to certain qualifications arising from the provisions in the law permitting self-assessment by individual taxpayers under certain conditions. (*) As was also noted in the same document (page 16), "the form in which the net increase in indebtedness is financed, though generally of less direct significance than changes in the level of current receipts in terms of the effects upon the level of demand for goods and services, is nevertheless important, especially in its effects on the volume of money which can be drawn on for spending." RECONCILIATION BETWEEN NET INCREASE IN INDEBTEDNESS AND CURRENT ACCOUNT SURPLUS OF COMMONWEALTH AUTHORITIES. RECONCILIATION BETWEEN BUDGET RESULT AND NATIONAL ACCOUNTS TABLE, 1965-66. Reconciliation between Budget Result and National Accounts Table, 1965-66 - continued. Debate (on motion by **Mr. Calwell)** adjourned. {: .page-start } page 63 {:#debate-21} ### APPROPRIATION BILL (No. 2) 1966-67 Message from the Governor-General recommending appropriation for proposed expenditure announced. Bill presented by **Mr. McMahon,** and read a first time. {:#subdebate-21-0} #### Second Reading {: #subdebate-21-0-s0 .speaker-009MA} ##### Mr McMAHON:
Treasurer · Lowe · LP -- I move - >That the Bill be now read a second time. This Bill contains details of the proposed appropriations for expenditure on - {: type="a" start="a"} 0. the construction of public works and buildings; 1. the acquisition of sites and buildings; 2. items of plant and equipment which are clearly definable as capital expenditure; 3. grants to the States under section 96 of the Constitution; and 4. new policies not authorised by special legislation. The main points regarding the proposed expenditure 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 64 {:#debate-22} ### BUDGET 1966-67 {: #debate-22-s0 .speaker-009MA} ##### Mr McMAHON:
Treasurer · Lowe · LP -- I present for the information of honorable members the following papers in connection with the Budget for 1966-67- >Estimates of Receipts and Summary of Estimated Expenditure for the year ending 30th June, 1967. > >Commonwealth Payments to or for the States 1966-67. > >National Income and Expenditure 1965-66. Government Securities on Issue at 30th June, 1966. > >Commonwealth Income Tax Statistics for income year 1963-64. > >Civil Works Programme 1966-67, prepared by the Minister for Works. Ordered to be printed. {: .page-start } page 64 {:#debate-23} ### LOAN (HOUSING) BILL (No. 2) 1966 Bill - by leave - presented by **Mr. Bury,** and read a first time. {:#subdebate-23-0} #### Second Reading {: #subdebate-23-0-s0 .speaker-JTP} ##### Mr BURY:
Minister for Labour and National Service · Wentworth · LP -- I move - >That the Bill be now read a second time. This Bill seeks authority for the Treasurer **(Mr. McMahon)** to borrow $120,000,000 to be advanced to the States in the current financial year in accordance with the pro visions of the Housing Agreement Act 1966. At its meeting last June, the Australian Loan Council decided that $120,000,000 should be allocated for housing out of a total borrowing programme for State works and housing for 1966-67 of $645,000,000. The figure approved by the Australian Loan Council, of course, represents the sum of the amounts nominated by each State Premier for advances under the Housing Agreement. I might mention that the State Premiers made their decisions in the light of a suggestion by the Commonwealtn that the proportion of the works and housing programmes to be devoted to housing in 1966-67 should be no less than that for 1965-66. The distribution of the amount of $120,000,000 between the States is as follows: - These advances are repayable over 53 years and bear interest at' one per cent per annum below the long term bond rate. The amount of $120,000,000 for which parliamentary approval is being sought is $18,000,000 greater than the amount originally allocated by the Australian Loan Council for housing advances to the States in 1965-66. Honorable members will recall, however, that housing advances last year included, on the initiative of the Commonwealth, a special allocation of an additional $15,000,000 approved by the Australian Loan Council last March. Housing advances to the States in 1 966-67, and in each of the next succeeding four financial years, will be made under an agreement with the States, the form of which received the approval of Parliament earlier this year. It will take some time before all the administrative arrangements necessary to the execution of the new agreement are made. In the meantime, the Housing Agreement Act 1966 makes provision for the Treasurer to make such advances to the States as would be made if the agreement were in force. As in the case of the Housing Agreement which expired on 30th June last, the form of the Agreement authorised by the Housing Agreement Act 1966 requires that not less than 30 per cent, of the total advances made to a State each financial year shall be allocated for loans to private home seekers mainly through building societies. Thus in 1966-67 a minimum of $36,000,000 will be made available for this purpose leaving $84,000,000 for the erection of dwellings by the States. At this point of time, it is appropriate to review the significant contribution made by the Commonwealth towards housing in the States under the 1945, 1956 and 1961 Housing Agreements. Up to 30th June 1966, the date on which the 1961 Agreement expired, a total amount of $1,348 million has been advanced to the States from loan funds for housing. Of that amount, approximately $268 million has been allocated to Home Builders' Accounts since 1st July 1956 when this form of assistance to private home building was first introduced. The amount of $120,000,000 to be provided in the current financial year sets a new record. It demonstrates clearly the Commonwealth's willingness to continue to provide substantial assistance towards the housing needs of the States. I commend the Bill to the House. Debate (on motion by **Mr. Crean)** adjourned. {: .page-start } page 65 {:#debate-24} ### SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) BILL (No. 2) 1966 Bill presented by **Mr. Howson,** and read a first time. {:#subdebate-24-0} #### Second Reading {: #subdebate-24-0-s0 .speaker-0095J} ##### Mr HOWSON:
Minister for Air and Minister Assisting the Treasurer · Fawkner · LP -- I move - >That the Bill be now read a second time. The purpose of this Bill is to amend the Sales Tax (Exemptions and Classifications) Act 1935-1966 to give effect to the sales tax proposals announced in the Budget Speech by the Treasurer **(Mr. McMahon).** The major proposal provides for a reduction from *I2i* per cent, to 21 per cent, in the rate of tax on electric fans and air conditioners of a household type. Electric radiators and various other room heaters of a kind used to provide household heating are taxed at 2± per cent, but electric fans and air conditioners have hitherto been taxed at *2i* per cent. In recent years there has been an appreciable increase in the use of air conditioners for household cooling purposes. This increase has been most marked in the northern and inland areas of Australia. As honorable members will appreciate, because of the climatic conditions, household cooling appliances are just as important in these hotter areas as heating appliances are in the cooler regions of Australia, lt is accordingly proposed that the rate of tax on electric fans and air conditioners of a kind ordinarily used for household purposes should be reduced to 2+ per cent, to correspond with that applicable to the majority of other household appliances. The reduction in rate will not be limited to conventional air conditioners in which cooling is achieved by refrigeration. It will apply also to air conditioners of the evaporative cooling type. Dual purpose air conditioners which provide heating as well as cooling will likewise be subject to the reduced rate, provided, of course, that they are of a kind ordinarily used for household purposes. As the Treasurer **(Mr. McMahon)** mentioned in his Budget Speech, this proposal would involve a loss of revenue estimated at $1,000,000 in a full year. The other proposal relates to goods purchased by the Australian Institute of Aboriginal Studies for its own use and not for resale. The Institute was established by the Australian Institute of Aboriginal Studies Act 1964 to promote anthropological research and study in relation to the Aboriginal people of Australia. Section 29 of the Act provides that the Institute is not subject to taxation under any law of the Commonwealth or of a State or Territory of the Commonwealth. Under the sales tax legislation, however, the liability for payment of tax ordinarily lies on a vendor of goods who normally recovers the tax from the purchaser. Section 29 does not then have the effect of exempting the vendor from liability for sales tax on goods purchased by the Institute; nor does it relieve the Institute of the obligation of bearing any tax passed on to it by vendors. The amendment proposed by clause 3 will give effect to the intention in section 29 by relieving vendors of liability for tax on goods purchased by the Institute, thereby ensuring that the Institute does not have to bear sales tax onits purchases. The amendments will be effective on and from tomorrow, 17th August 1966. A memorandum explaining the clauses of the Bill is being made available to honorable members. I commend the Bill to the House. Debate (on motion by **Mr. Crean)** adjourned. {: .page-start } page 66 {:#debate-25} ### PHOSPHATE FERTILISERS BOUNTY BILL 1966 Bill - by leave - presented by **Mr. Howson,** and read a first time. {:#subdebate-25-0} #### Second Reading {: #subdebate-25-0-s0 .speaker-0095J} ##### Mr HOWSON:
Minister for Air · Fawkner · LP .- I move- That the Bill be now read a second time. It is proposed to extend from 14th August 1966 to 31st October 1969, a period slightly in excess of three years, the operation of the Phosphate Fertilisers Bounty Act 1963. Honorable members will recall the announcement by the right honorable the Treasurer **(Mr. McMahon)** in his Budget Speech of the proposed extension of this Act, which provides for payment of bounty on superphosphate and ammonium phosphate made in Australia and either sold for use in Australia as a fertiliser, or used in the production of fertiliser mixtures for use in Australia. An opportunity has also been taken to alter references to currency in the existing Act to decimal currency equivalents. The bounty is paid to manufacturers but is required to be passed on, in the price charged for fertilisers, to the farming community. The Government is satisfied that this is being done. Price rises have occurred in the three years of operation of the bounty but these reflect trends arising from the increased prices of phosphate rock available to Australian manufacturers and increased world prices of sulphur, as well as increases in labour and some other manufacturing costs over the past few years. {: .speaker-KYC} ##### Mr Pollard: -- And increased profits to manufacturers. {: .speaker-0095J} ##### Mr HOWSON: -- Honorable members are well aware of the importance of fertilisers, especially phosphate fertilisers, for productivity and development in our primary industries. Australian soils are. generally, notably deficient in phosphorus. The bounty on phosphate fertilisers was introduced in August 1963 to stimulate the use of these fertilisers and to offer tangible cost benefits to primary producers. By comparison with the level of consumption in 1962-63. the usage of phosphate fertilisers has been expanded, in terms of phosphorus content, by 19 per cent. in 1963-64, an added 15 per cent. in 1964-65, with a further increase of 12 per cent. in 1965-66. This gives an overall increase of some 46 per cent. in three years. The bounty has therefore clearly stimulated progress in agriculture and pasture improvement in this country. This, I think, clearly answers the comment made by the honorable member for Lalor. {: .speaker-KYC} ##### Mr Pollard: -- It has nothing to do with the rampant profiteering engaged in by the superphosphate manufacturers. {: .speaker-0095J} ##### Mr HOWSON: -- The honorable member will have plenty of opportunity to speak during the second reading debate. A further increase in usage of 1.8 per cent. is projected for 1966-67. The continuation of the bounty is expected to encourage a consolidation of the trend towards increased usage of phosphate fertilisers. This legislation will empower a substantial level of expenditure, estimated at $28 million in the next 12 months, which will be of direct benefit to the farming community and major export earning industries of Australia. I commend the Bill to honorable members. Debate (on motion by **Mr. Pollard)** adjourned. {: .page-start } page 66 {:#debate-26} ### TARIFF PROPOSALS {: #debate-26-s0 .speaker-0095J} ##### Mr HOWSON:
Minister for Air · Fawkner · LP .- I move- {:#subdebate-26-0} #### Customs Tariff Proposals (No. 8) (1966) {:#subdebate-26-1} #### Customs Tariff Proposals (No. 9) (1966) {:#subdebate-26-2} #### Customs Tariff Proposals (No. 10) (1966) Customs Tariff Proposals (No. II) (1966). {:#subdebate-26-3} #### Customs Tariff Proposals (No. 12) (1966) Customs Tariff Proposals Nos. 8 to 12, which I have just tabled, relate to proposed amendments of the Customs Tariffs 1966. The changes involve duties which have been collected since the adjournment of the Parliament last session under proposed Customs Tariff alterations published by Gazette notice and which are now proposed pursuant to Statute. Proposals No. 8 and 9 relate to collections which were instituted before the 30th June 1966 and they are contained in a Bill to amend the Customs Tariffs 1966 which I shall introduce later this day. Proposals No. 8, operating from 20th June 1966, provide that the duty payable on imported concentrated citrus fruit juices, including concentrated citrus juice syrups, shall be determined according to the degree of concentration rather than by specific tariff provision as at present. This action will restore to concentrated citrus juices the tariff treatment which applied prior to 1st July 1965. The other changes in Proposals No. 8 improve the translation from the Customs Tariff 1933-1965 to the new Tariff based on the Brussels Nomenclature which operated from 1st July, 1965. Proposal No. 9, operating from 21st June 1966, relates to the Tariff Board report on hot water bags. As a result of the Tariff Board's recommendation, the normal Customs duties on imported hot water bags are reduced. The new duties arc 35 per cent, ad valorem (general) and 20 per cent, ad valorem (preferential). However, the Tariff Board found that some imported hot water bags have been dumped in Australia. The Minister for Customs and Excise **(Senator Anderson)** has taken the necessary steps to ensure that any imports at dumped prices are subject to appropriate anti dumping duties. The remaining Proposals, that is to say Proposals 10 to 12, operate from dates after 1st July 1966 and will be the subject of a Bill to amend the Customs Tariff to be introduced at a future date. Proposals No. 10, operating from the 1 8th July 1966, provide for temporary duties arising from a report by the Special Advisory Authority on certain polyvinyl chloride products, namely sheet, film, textile coated or supported fabrics, curtains and tablecloths. These temporary duties are in addition to the normal duties and the Tariff Board has been asked to inquire and report on the long term protective needs of the industry. The temporary protection now imposed is holding action pending the Government's decision on receipt of the Tariff Board report. Provision has been made for the previous duties to operate without the additional temporary duties should a proposal for voluntary restraint of exports from Japan be accepted by the Government. Proposals No. 1 1 operating from the 1st August 1966 provide for Tariff changes arising out of Tariff Board reports on motor vehicles, glassware, hollow bars, tubes and pipes of iron and steel, and Tariff changes following the completion of international negotiations. On motor vehicles, the Tariff changes follow those announced by my colleague the Minister for Trade and Industry **(Mr. McEwen)** when the Tariff Board report on motor vehicles was released in February 1966. As imports of assembled cars and station wagons exceeded 71 per cent, of the total registrations of new cars and station wagons in Australia over the two year period ending on the 30th June 1966, the import duties on these vehicles are being increased on and from the 1st August 1966 by 10 per cent, to rates of 45 per cent, (general) and 35 per cent, (preferential). Provision exists for the admission by Ministerial Determination at the previous rates of duty of norma! quantities of particular models of imported assembled cars until the 31st December 1.966. These provisions will apply where firm arrangements were concluded prior to 30th June for future assembly in Australia. On glassware, the recommendations of the Tariff Board were partly implemented on and from the 1 5th April 1966 in respect of glass ovenware and tumblers. Those earlier provisions will be in the Bill which 1 mentioned that I will introduce into this House later this day. The balance of the Board's recommendations were not implemented at that time due to international negotiations but the negotiations are now complete and the report is being fully implemented. In relation to container glassware such as carboys, bottles and jars, the Board has found that the present duties can be decreased to a non protective level as this portion of the industry is in a strong competitive position against imports. Non protective duties are also being applied to lead crystal glassware and higher priced domestic glassware which is not produced in Australia. On heat resisting glassware and on lower priced table, kitchen, toilet and office glassware, the duties are being increased. The Board considers that if the industry is to obtain a greater share of this market, and so increase its throughput to an economic and profitable level, increased duties are necessary. The Government has accepted the Board's suggestion that the local glassware industry be reviewed in three years time when the effect of these new duties should be evident. On hollow bars, tubes and pipes the Tariff Board's recommendations are being adopted in full. Briefly, the existing duties will continue on welded tubes and pipes exceeding 3-in. internal diameter, and there will be a reduction in the general rate applying to other tubes and pipes. The remaining changes in this proposal follow the completion of international negotiations with the United States of America, Japan, Czechoslovakia and Finland and involve duty reductions in a number of commodities. Proposals No. 12 are drafting amendments to improve the translation from the Customs Tariff 1933-1965, and are in accordance with the undertaking which was given when the new Tariff was introduced in May 1965. Documentation to assist honorable members in their study of these proposals is now being distributed. 1 commend the proposals. Debate (on motion by **Dr. J.** F. Cairns) adjourned. {: .page-start } page 68 {:#debate-27} ### TARIFF BOARD Reports on Items. {: #debate-27-s0 .speaker-0095J} ##### Mr HOWSON:
Minister for Air · Fawkner · LP -- Pursuant to Statute I present a report by the Special Advisory Authority on - >Polyvinyl chloride products. I also present reports by the Tariff Board on - >Glassware. > >Hot water hags. > >Hollow bars, tubes and pipes of iron or steel. Ordered that the reports be printed. {: .page-start } page 68 {:#debate-28} ### TARIFF PROPOSALS {:#subdebate-28-0} #### Discharge of Morions {: #subdebate-28-0-s0 .speaker-0095J} ##### Mr HOWSON:
Minister for Air · Fawkner · LP -- by leave - agreed to - >That the following Tariff Proposals, constituting part of Order of the Day No. 29, Government Business- namely. Customs Tariff Proposals Nos. 1, 2and 3 of 1966- be discharged. {: .page-start } page 68 {:#debate-29} ### CUSTOMS TARIFF BILL (No. 3) 1966 Bill presented by **Mr Howson,** and read a first time. {:#subdebate-29-0} #### Second Reading **Mr. HOWSON** (Fawkner- Minister for Air)[9.41].- I move- >That the Bill be now read a second lime. This Bill proposes amendments to the Customs Tariffs 1966. The Bill comprises twelve schedules and an amendment to a section of the Customs Tariff. TheTariff alterations in Schedules 1 to 5 incorporate changes consequent on the adoption by the Government of the report by the Tariff Board on bonded fibre fabrics. The Board found that since its last inquiry into bonded fibre fabrics in 1961, the industry had increased considerably its range of production and also its share of the market. In the Board's opinion, the industry has progressed to the point where it now needs less protection against imports than is provided by the present duties. On its recommendation, therefore, the duties on bonded fibre fabrics are being reduced by 5 per cent. ad valorem to 15 per cent, ad valorem, irrespective of the country of origin. The same level of protection is being applied to articles of bonded fibre fabrics. The balance of the amendments in Schedule's 1 to 5 are necessary to improve the translation from the Customs Tariff J 933-1 965 to the new Tariff based on the Brussels Nomenclature which operated from 1st July 1965. These changes will ensure a continuation of the duty position existing prior to 1st July 1965 and are in accordance with the undertaking given when the new Tariff was introduced in May 1965. The Sixth Schedule will make provision for the duty free entry of a range of handmade traditional products of the cottage industries of less developed countries and will extend the range of concessions to less developed countries already approved by Parliament. The Seventh Schedule will vary the duties on certain glass ovenware and tumblers on which temporary duties were imposed in May 1964, following a recommendation by the Special Advisory Authority. The new duties replace the former combined ordinary and temporary duties and are in accordance with the recommendations of the Tariff Board in its report on glassware. Schedules Eight and Nine provide for the imposition of temporary duties on alloy steel hoop, strip, plate or sheet in accordance with the recommendations of the Special Advisory Authority. In respect of hoop and strip a temporary duty of $448 per ton, less 40 per cent, of the f.o.b. price, is to be imposed, while on plates and sheets a temporary duty of $448 per ton, less 47± per cent, of the f.o.b. price, is to be imposed. These temporary duties will be in addition to the normal duties. The longer term protective needs of the Australian alloy steel industry, which includes stainless steel production, have been referred to the Tariff Board for inquiry and report, and the temporary duties will operate until such time as the Government takes action following receipt of the final report of the Board. The Tenth Schedule provides that the duty payable on imported concentrated citrus fruit juices, including concentrated citrus juice syrups, shall be determined according to the degree of concentration rather than by specific tariff provision as at present. This action will restore to concentrated citrus juices the tariff treatment which applied prior to 1st July 1965. Other changes in the Tenth Schedule have been made to further improve the translation from the Customs Tariff 1933-1965 .to the new Tariff based on the Brussels Nomenclature which operated from 1st July 1965. These relate to made up floor coverings for use as original components in motor vehicles and to certain spirituous toilet preparations. The Eleventh and Twelfth Schedules relate to the Tariff Board's report on hot water bags. As a result of the Board's findings, the normal customs duties on imported hot water bags are being reduced. The new duties are 35 per cent. ad. valorem general and 20 per cent, ad valorem preferential. However, the Tariff Board found that some imported hot water bags have been dumped in Australia. The Minister for Customs and Excise **(Senator Anderson)** has taken the steps necessary to ensure that any imports at dumped prices are subject to appropriate antidumping duties. In addition to these Schedules in relation to which documentation is now being cir culated for the information of honorable members, there is a change relating to section 25 of the Customs Tariffs 1966. This section provides for two types of ministerial direction to be made relating to the importation of separate articles. The first of these may be made in respect of goods consisting of separate articles. In that case a direction may be given that the duty shall be collected at the rate applicable to the separate article which gives the goods their essential character. A second type of direction may be given and the direction is then to the effect that the goods shall be dutiable according to the duty applicable to the separate articles. The existing provisions are adequate whenever it is clearly seen that goods consist of separate articles. For example, a canteen of cutlery or a tool set is clearly comprised of separate articles. The position is not so clear in other cases where separate articles are involved in the construction of goods. For example, in a radio set the valves are probably clearly separate articles but capacitors and resistors less so. Yet they are clearly articles in their own right and may be restored to separateness by mere unsoldering. The proposed amendment clarifies the position concerning what constitutes separate articles that are incorporated in goods. I commend the Bill to honorable members. Leave granted for the debate to continue. {: #subdebate-29-0-s0 .speaker-1V4} ##### Dr J F Cairns:
YARRA, VICTORIA · ALP **.- Mr. Speaker,** the Government appears to desire that the debate on this Bill proceed immediately. For the Opposition, I have no objection to proceeding with it. Tariff proposals are this evening, as usual, being discussed in a rather empty chamber. We are not disconcerted by the post Budget debate on this matter. This evening, we have cleared away the orders of the day for Tariff Proposals Nos. 1, 2 and 3, which have already been incorporated in Customs Tariff Bill (No. 2) 1966. We are now engaged in debating Tariff Proposals Nos. 4, 5, 6 and 7, which are incorporated in Customs Tariff Bill (No. 3). Proposal No. 4 was introduced on 30th March 1966 and Proposals Nos. 5, 6 and 7 on 28th April 1966. The first part of the Bill relates to Schedules 1 to 5, which apply to the bonded fibre fabrics industry and which will give effect to the Tariff Board's report on this subject which was published on 19th November 1965. The Minister for Air **(Mr. Howson)** has told us that the Board found that since its last inquiry into bonded fibre fabrics in 1961 the industry had considerably increased its range of production and also its share of the market. It was the Board's opinion in 1965 that the industry had progressed to a stage at which it needed less protection against imports than is provided by the present duties. The Minister has told us that, on the Board's recommendation, the duties on bonded fibre fabrics are being reduced by 5 per cent. ad valorem to 15 per cent. ad valorem regardless of the country of origin. The same level of protection is being applied to articles of the bonded fibre fabrics industry. The Minister told us the same thing in his speech on 30th March of this year, and reference to the Board's report shows that the bonded fibre fabrics industry, which was the subject of inquiry in 1.965, has gone through considerable change since 1961. The scope of the inquiry, therefore, covered a wider range of the industry than four years before, and 1 should imagine that this is an example of satisfactory growth in a particular section of industry - one which, in four years, on the recommendation of the Board, allows a reduction of tariff by 5 per cent. ad valorem. The Opposition has no reason to oppose this provision and will support the reduction of the tariff involved. The Minister has told us that the balance of the amendments in Schedules 1 to 5 are necessary to improve the translation from the Customs Tariff 1933-1965 to the new Tariff based on the Brussels Nomenclature which has operated from 1st July 1965. One would have no objection to this translation. We adopted the application of the Brussels Nomenclature last year, and the Opposition expressed approval of the new system of classification; but it has come to my knowledge during the course of the year that, in the application of (he translation, there has been a redefinition of articles in a number of cases and an increase in the tariff involved simply as the result of the new definition. I do not think that it was ever intended that there should be an increase, but according to the information that has come to me - and this applies to a number of electrical appliances without doubt - it appears that there has been an increase in the actual rate of tariff imposed on an article which has not been changed in nature in the meantime. {: .speaker-0095J} ##### Mr Howson: -- Has the honorable member any instances? {: .speaker-1V4} ##### Dr J F Cairns:
YARRA, VICTORIA · ALP -- I have some details on the way, and I will let the Minister know precisely what they are as soon as they arrive; but I pointed out last year that we would have to watch for any changes of this kind in the application of the Brussels Nomenclature, and it does appear that something may have gone wrong. The Sixth Schedule makes provision for the duty free entry of a range of hand made traditional products of the cottage industries of less developed countries and extends the range of concessions to less developed countries already approved by the Parliament. This gives legislative effect to Tariff Proposal No. 5 which has been operating from 12th April of this year. When that proposal was introduced, we were given the schedule and this indicated that the goods that come within the range of this were hand made traditional products of cottage industries of a less developed country. They were listed as follows - hornware, ivoryware, shellware or stoneware, being wares that are carved or inlaid; lacquer ware; leatherware, decorated; metalware that is - beaten; carved; chased; enamelled; inlaid; or moulded; papier mache ware, decorated; pottery, decorated; textile fabrics, of cotton or in chief part by weight of cotton, weighing less than 6 ounces per square yard, not being fabrics to which sub-paragraph 55.09.329 applies; textile fabrics, of silk or in chief part by weight of silk, not printed; wood work, carved or inlaid. One has only to travel, asI have travelled recently, in a number of undeveloped countries to know how important these hand made traditional products of cottage industries are for them; and I welcome as I did earlier this year the concessions provided of the duty free entry of this range of traditional products. One hopes that the range will be extended at the earliest possible time because it is obvious that the full range of items of traditional industries that are available for purchase in the countries of South East Asia to the north of Australia and elsewhere are not yet adequately covered. I hope that this list will be extended without delay. The Seventh Schedule varies the duties on certain glass ovenware and tumblers on which temporary duties were imposed in May 1964 following the recommendation of the Special Advisory Authority whose report was published on 11th May of that year. The Minister for Trade and Industry **(Mr. Mc Ewen)** had asked the Special Advisory Authority whether there was a necessity for urgent action to be taken to protect the Australian glassware manufacturing industry in relation to imports of (i) heat resisting glassware for cooking purposes and (ii) glassware, viz. tumblers and the like having a capacity of five fluid ounces or more, and having a f.o.b. price not exceeding 5s. per dozen. In reply to the Minister's request the Special Advisory Authority reported as follows - {: type="a" start="a"} 0. it is necessary that urgent action be taken to protect the Australian glassware manufacturing industry in relation to imports of heat resisting glassware and tumblers of the types specified in the Minister's reference; 1. the protection can appropriately be pro vided by means of temporary additional duties . . . They were set out in detail in the report. The legislation we are considering gives effect to this report. Again the Opposition sees no reason to oppose this provision, which is supported by the Special Advisory Authority's report. The next matters for consideration by the House are Schedules 8 and 9. They provide for the imposition of temporary duties on alloy steel hoop, strip, plate or sheet in accordance with the recommendations of the Special Advisory Authority. The Tariff Board's report on this matter was published on 24th September 1.965. On the face of it. the proposal involves quite a considerable change, lt is a temporary duty. The Tariff Board seems to have taken a fairly detailed look at the situation and its recommendation was that the present rates of duty of 7fr per cent. General and Free Preferential applicable to the goods under reference be unchanged. But the position now is that in respect of hoop and strip a temporary duty of S448 per ton less 40 per cent, of the f.o.b. price is to be imposed while on plates and sheets a temporary duty of $448 per ton less *47i* per cent, of the f.o.b. price is to be imposed. The temporary duties are to be in addition to the normal duties. The Tariff Board found as follows - >Tinplate production is now an integral part of the local iron and steel industry which is basic to the national economy. The capital, labour and natural resources involved in tinplate production are considerable and the industry would clearly warrant protection should such be necessary. > >It is apparent, however, that present imports of tinplate are supplementary to Australian production with local consumers only placing orders overseas for special requirements or to make up a short fall in local production. So the situation that is being met certainly appears to be only temporary. This is certainly a temporary duty. From the report of 24th September 1965 it is clear that the Board thought that overseas orders for special requirements or to make up a short fall in local production were the ones that were being placed. Again the Opposition will accept this temporary duty. But in the circumstances we expect that it will not be long before we hear more from the Minister, the Special Advisory Authority or the Board in respect of this matter, in view of the references that 1 have made to the report of 24lh September 1965. The Tenth Schedule provides that the duty payable on imported concentrated citrus fruit juices, including concentrated citrus juice syrups, shall be determined according to the degree of concentration rather than by specific tariff provision as at present. This action will restore to concentrated citrus juices the tariff treatment which applied prior to 1st July 1965. Again the Opposition sees no reason why this should not be done. The point on which I should like to conclude is a light one. Having come recently from Melbourne, it seems to me that we should not be objecting to the dumping of hot water bags at this time of the year. The Eleventh and Twelfth Schedules to the Bill now under consideration refer to this matter. The Tariff7 Board has found that some imported hot water bags have been dumped in Australia. Of course, that may have an adverse effect on the Australian industry; but it is only a very small part of a very big industry. It may well be that the particularly cold winter that we have had this year has left the Government inactive in the face of this perhaps temporary example of dumping. {: .speaker-0095J} ##### Mr Howson: -- Does the honorable member find that hot water bags are necessary in Melbourne? {: .speaker-1V4} ##### Dr J F Cairns:
YARRA, VICTORIA · ALP -- I do not, personally; but I know of many people who do. 1 should imagine that there would be few places in Australia where they would be more necessary than they are in Melbourne. **Mr. Speaker,** there are a number of other detailed matters in respect of this Bill on which I do not intend to weary the House this evening. I have referred In passing to the matters that seem to me to have some significance. At this stage I do not desire to say any more. Question resolved in the affirmative. Bill read a second time. {:#subdebate-29-1} #### Third Reading Leave granted for third reading to be moved forthwith. Bill (on motion by **Mr. Howson)** read a third time. House adjourned at 10.5 p.m. {: .page-start } page 73 {:#debate-30} ### ANSWERS TO QUESTIONS UPON NOTICE The following answers to questions upon notice were circulated - {:#subdebate-30-0} #### Overseas Investment in Australia. (Question No. 1627.) {: #subdebate-30-0-s0 .speaker-KXI} ##### Mr Webb:
STIRLING, WESTERN AUSTRALIA b asked the Minister for Trade and Industry, upon notice - {: type="1" start="1"} 0. Does the Directory of Overseas Investment prepared by the Department of Trade and Industry show that 506 of the 872 firms listed were wholly owned by foreign investors and that foreign owners held at least a 50 per cent, interest in nearly 90 per cent, of the 872 firms? 1. What action is proposed to provide some regulation of the flow of capital into Australia? 2. Is it contemplated that a substantial portion of all foreign companies operating in Australia should be owned by Australian citizens? {: #subdebate-30-0-s1 .speaker-009MB} ##### Mr McEwen:
CP -- The answers to the honorable member's questions are as follows - {: type="1" start="1"} 0. Yes. It should be noted, however, that the directory only lists those firms which are known to have an element of overseas participation, and that, the overseas interest for each of the firms listed in the Directory relates to the firm's ordinary capital only. *i* and 3. The present policy on the inflow of foreign capital, and the desirability of having a significant element of Australian equity participation in ventures established in Australia by overteas interests, wherever possible, have been made widely known by this Government. {:#subdebate-30-1} #### National Service Training. (Question No. 1662.) {: #subdebate-30-1-s0 .speaker-KYS} ##### Mr Reynolds:
BARTON, NEW SOUTH WALES s asked the Prime Minister, upon notice - {: type="1" start="1"} 0. Is he able to state whether, as a result of the decision of the former New South Wales Labour Government, which has bren maintained by the present Government, employees of the New South Wales Public Service and State statutory authorities have (heir National Service pay made up to their (salary as at call-up? 1. Have the Commonwealth and Victorian Liberal-Country Party Governments refused to add any similar subsidy to the payments of their public servants or employees of statutory authorities whilst on National Service? 2. If so, does this mean that these Commonwealth and Victorian employees will be up to $2,000 worse off than their New South Wales counterparts? {: #subdebate-30-1-s1 .speaker-009MC} ##### Mr Harold Holt:
LP -- The answers to the honorable member's questions are as follows - 1 and 2. Iiic Defence (Re-establishment) Act 1965 which grants protection in relation to civil employment contains no provision requiring an employer to make up the salary of a National Serviceman during his period of absence on service. Although it may be the policy of some organisations to do so, it is not the policy of the Commonwealth Government ta make up salaries of its employees. Nor is this the practice of State Governments, with the exception of the Government of New South Wales. {: type="1" start="3"} 0. While superficially there may appear to be an advantage to employees of the New South Wales Government who are called up for National Service the advantage is not necessarily in the terms stated by the honorable member. The majority of youths called up for National Service are twenty years of age and those of them who are public servants will largely be in receipt of junior rates of pay, whereas on entering the Australian Regular Army Supplement they are entitled to the minimum recruit adult rates of pay. Certainly there will be some who for such reasons as early promotion will have been receiving adult rates. However it is far more likely that national servicemen in the Army could well find their financial positions improved compared with their civilian rates of pay especially if sustenance and various other Army benefits are taken into account as well as the adult Army rates of pay. {:#subdebate-30-2} #### South East Asia Treaty Organisation. (Question No. (667.) {: #subdebate-30-2-s0 .speaker-RK4} ##### Mr Hayden:
OXLEY, QUEENSLAND n asked the Minister for External Affairs, upon notice - {: type="1" start="1"} 0. Did he stale on 14th November 1965, at a meeting arranged by the Liberal Speakers' Group of Victoria, (hat Australia's commitment to Vietnam was undertaken on the individual interpretation of the Government of our obligations under S.E.A.T.O.? 1. If so, does this mean that commitment to conflict under the Treaty is decided by each ot the nations concerned on its individual interpretation of the Treaty in relation to the sPecific case of aggression under consideration? 2. Does this in turn mean that contradictory interpretations by signatories can arise when considering a specific case of aggression under the terms of the Treaty? 3. ls this the explanation why only the United Slates of America, Australia and New Zealand have combat troops committed to Vietnam under the Treaty at the present time whilst the several other signatories lo the Treaty are not so committed? 4. Of what value is S.E.A.T.O. if so few signatories feel that they have obligations under it? {: #subdebate-30-2-s1 .speaker-ZL6} ##### Mr Hasluck:
Minister for External Affairs · CURTIN, WESTERN AUSTRALIA · LP -- The answers to the honorable member's questions are as follows - {: type="1" start="1"} 0. In an address on 14th November 1965 to *a* conference organised by the Liberal Speakers' Group of Victoria. I said that " it is on our individual interpretation of our obligations under S.E.A.T.O. that Australia responded to the request made by South Vietnam for assistance in her defence against communist aggression from the North ". 2, 3 and 4. These are matters of opinion and argument. {: type="1" start="5"} 0. I said at the opening public session of the S.E.A.T.O. Council Meeting in London on 3rd May 1965: " We value S.E.A.T.O. and believe it has had considerable success up to date both as a deterrent to aggression and as a means of co-operation among like minded countries. We will continue our support for S.E.A.T.O. We recognise that the purposes of S.E.A.T.O. are wider than military measures and we believe that the members of S.E.A.T.O. are making a very useful contribution to the improvement of the life of the peoples of Asia ". {:#subdebate-30-3} #### Defence Forces. (Question No. 1672.) {: #subdebate-30-3-s0 .speaker-RK4} ##### Mr Hayden: n asked the Minister for Defence, upon notice - {: type="1" start="1"} 0. Is it a fact that insufficient eligible volunteers are available to meet the manpower requirements of the defence forces? 1. Is he able to say whether the Canadian Government is considering offering re-enlistment grants to servicemen which could amount to approximately $1,000 (Canadian) for a private soldier signing on for a new term? 2. Would the adoption of a similar system in this country act as a sour to the re-engagement of personnel in the services and also act as a saving by retaining the services of trained men and reducing the cost of training replacements for non re-enlisting servicemen? 3. If so, will the Government consider implementing a scheme of this nature? {: #subdebate-30-3-s1 .speaker-KEN} ##### Mr Fairhall:
Minister for Defence · PATERSON, NEW SOUTH WALES · LP -- The answers to the honorable member's questions are as follows - {: type="1" start="1"} 0. Since the increased pay rates were introduced in 1964, there has been some improvement in the recruiting intake. The recruitment targets set for the Navy and the Air Force in the present Defence programme are expected to be met within the required timings. In the existing conditions of full employment, however, experience has shown that it would not have been possible by voluntary recruitment alone to bring about within two years, the required increase in strength of the Australian Regular Army from 22,750 to 40.000. 1. The Canadian Government has introduced a scheme whereby other rank members of the Defence Force receive $1,000 Canadian on reengagement. The initial period of engagement in the Canadian Services is five years, with reengagement periods also of five years. 3 and 4. Relative to the general employment level in the community the Services are obtaining a reasonable share of the labour market by voluntary recruitment. The experience of the Services is that financial incentives alone do not markedly improve the attractions of a service career in a time of full employment. The review of conditions of service in 1964. as well as speeding up the provision of houses for married servicemen. increased pay and allowance levels and introduced, in addition, a special service allowance of 40 cents a day for other rank members. This allowance spread over 10 years, the period equivalent to the initial engagement and the first re-engagement in the Canadian Forces, equals $1,460 (Australian). Canadian pay rates have no similar allowance. Further, provision exists for a man who re-engages at the six-year .point (i.e. on completion of the first engagement) to receive, unless he elects otherwise, a $600 advance on the D.F.R.B. gratuity due at the end of the 12 years service. Present reengagement rates in all three Services are high. Steel Industry: Overseas Investment in Australia. (Question No. 1674.) {: #subdebate-30-3-s2 .speaker-RK4} ##### Mr Hayden: n asked the Minister for Trade and Industry, upon notice - {: type="1" start="1"} 0. Has his attention been drawn to a recent announcement that a steel industry is to be established in Communist China and that the Bonn Government is providing on a contract basis the technical know-how for its establishment? 1. Is he able to say whether three steel industry plants have been established in India since the war on a similar basis? 2. Are the problems of perpetually paying servicing costs to overseas shareholders avoided and the problems of foreign control of industry in an economy at least minimised by establishing such industries on a contract basis? 3. What percentage of Australian industry is foreign controlled? 4. Will the Government, to avoid further foreign control, consider using the contract basis for establishing 1'uLure industry in Australia? {: #subdebate-30-3-s3 .speaker-009MB} ##### Mr McEWEN:
MURRAY, VICTORIA · CP -- The answers to the honorable member's questions are as follows - {: type="1" start="1"} 0. Reports have been received that a West German firm is negotiating to obtain an order for the establishment of a steel plant in Communist China, but the Department of Trade and Industry has no details of the project. 1. Three steel plants have been constructed in India wilh financial and technical assistance from British, West German and Russian sources, but it is not possible to say whether the contractual arrangements in these cases were the same as those contemplated for the steel plant proposed to be established in Communist China. 2. No official estimate has been made of the percentage of foreign investment in Australian industry. However, the " Directory of Overseas Investment in Australian Manufacturing Industry ", which was recently published by the Department of Trade and Industry, shows the total assets of those Australian Manufacturing companies which are known to be partly or wholly owned overseas. 3 and 5. The Government's policy on foreign investment has been made widely known. Overseas investment in Australia is welcomed, particularly where it is of a kind likely to help in the balanced development of Australia's resources and brings with it the skills and " know-how " needed for the successful fulfilment of the project in which the investment is made. Although no rules are laid down, the Government feels that, in general, Australian participation in ownership and management is desirable and believes that fears and misunderstandings are least when this course is followed. {:#subdebate-30-4} #### Industrial Research and Development. (Question No. 1675.) {: #subdebate-30-4-s0 .speaker-RK4} ##### Mr HAYDEN:
OXLEY, QUEENSLAND · ALP n asked the Minister for Trade and Industry, upon notice - {: type="1" start="1"} 0. Did he, at the opening of the Australian and New Zealand Pulp and Paper Association Conference in Canberra recently, express concern at the small amount spent in Australia on industrial research and development? 1. Will he detail what tangible benefits and encouragement the Government has extended to private industry to invest in this field in each of the past ten years? {: #subdebate-30-4-s1 .speaker-009MB} ##### Mr McEwen:
CP -- The answers to the honorable member's questions are as follows - {: type="1" start="1"} 0. In opening the recent Conference of the Australian and New Zealand Pulp and Paper Industry Technical AssociationI stated that we could not afford to lag behind in our industrial technology if. we are to compete, as we must, with other developed countries. 1. The Government already encourages industrial research and development by a variety of forms of direct assistance and, indirectly, by income tax concessions. The Commonwealth Scientific and Industrial Research Organisation undertakes research into problems encountered by a large number of secondary industries ranging, for example, from cement and ceramics to chemicals and scientific instruments. An industrial research liaison section actively promotes the application within industry of the Organisation's own research findings. An Engineering Group Committee formed by the C.S.I. R.O., Department of Supply and the Australian Atomic Energy Commission has been instrumental in resolving many technical problems referred to it by industry. The Research and Development Establishments of the Department of Supply also provide advisory and consultation services to assist firms in special fields. financial and technical assistance is also given to a number of co-operative research associations. The Australian Mineral Development Laboratories in Adelaide, for example, have a staff of150, including 48 professional scientists and engineers, engaged in research and development. The Commonwealth provides one quarter of that organisation's guaranteed annual income of $480,000. The Commonwealth also makes annual grants to the Bread Research Institute of Australia, The Leather Industry Research Association, and the Australian Coal Association (Research) Ltd. Quite apart from such examples of direct assistance, the Commonwealth allows revenue expenditure incurred in the conduct of scientific research related to the taxpayer's own business as a deduction for income tax purposes. There are also special taxation provisions which authorise deductions for expenditure of a capital nature. Accelerated depreciation is allowable on plant and machinery used solely for scientific research. Expenditure on buildings in which scientific research related to the taxpayer's business is carried out may be amortised over a period of three years. in addition, provision is made for the allowance of deductions for payments to approved research institutes. In these ways, the Commonwealth has made a significant contribution to the total research and development effort in this country. Indeed, it has recently been suggested that there is now some further scope for increasing the amount of technical development undertaken within industry itself, in order to exploit more fully the increasingflow of new knowledge. The Government, therefore, is currently reviewing the extent of research and development within Australian industry. The Prime Minister recently announced, in his Ministerial Statement on Government Policy, that the Government has been impressed by the views of industry representatives on this subject and is considering various proposals for further assistance to industry in this field. Vietnam. (Question No. 1676.) {: #subdebate-30-4-s2 .speaker-JRN} ##### Mr Bowen:
PARRAMATTA, NEW SOUTH WALES n asked the Acting Minister for External Affairs, upon notice - >Which nations are giving - > >military and > >economic aid to South Vietnam? {: #subdebate-30-4-s3 .speaker-009MB} ##### Mr McEwen:
CP -- The Minister for External Affairs has furnished the following answer to the honorable member's question - {: type="a" start="a"} 0. The following countries have provided military assistance for the Republic of Vietnam: - Australia, Republic of Korea, New Zealand, Philippines, Thailand and the United States; 1. The following countries have provided economic assistance: - Australia, Belgium, Britain, Canada, Republic of China, Denmark, Ecuador, France, Federal Republic of Germany, Greece, Guatemala, India, Iran, Ireland, Israel, Italy. Japan, Republic of Korea, Laos, Luxembourg, Malaysia, Netherlands, New Zealand, Pakistan, Philippines, Spain. Switzerland, Thailand and the United States. {:#subdebate-30-5} #### Papua and New Guinea: Education. (Question No. 1686.) {: #subdebate-30-5-s0 .speaker-6U4} ##### Mr Whitlam:
WERRIWA, NEW SOUTH WALES m asked the Minister for Territories, upon notice - {: type="1" start="1"} 0. What has been the (a) dale and (b) nature of proposals made by or to (i) the States and (ii) international bodies for assistance in education in the Territory of Papua and New Guinea over the last five years? 1. How many (a) indigenous and (b) expatriate teachers are engaged in (i) Administration schools and (ii) subsidised mission schools? 2. How many of these teachers hold (a) university degrees and (b) teachers' college qualifications'.' 3. With which State education departments has his Department made agreements concerning the recruitment of teachers who are still under bond? 4. What were the dates and terms of the agreements? {: #subdebate-30-5-s1 .speaker-JOA} ##### Mr Barnes:
Minister for Territories · MCPHERSON, QUEENSLAND · CP -- The answers to the honorable member's questions are as follows - 1. (a) and (b) (i) The present arrangements under which assistance is obtained from the States towards education in the Territory of Papua and New Guinea resulted from an approach by the Prime Minister to the State Premiers on 2nd September 1960 seeking their agreement to discussions between officers of the Department of Territories and the State Education Departments to explore the possibilities of obtaining such assistance. At these discussions proposals were made for - {: type="a" start="a"} 0. a scheme along the lines of one implemented in 1959 with the New South Wales Education Department for the secondment of trained teachers; 1. a special secondment scheme for training masters to train indigenous teachers; and 2. the training of cadet education officers employed by the Territory Department of Education in State training colleges. Each State Education Department agreed to give assistance in one or more of these ways. (ii) Requests as follows have been made for assistance from international bodies: - On 23rd December 1965, by the Commonwealth to U.N.I.C.E.F and the organisations participating in the Expanded Programme for Technical Assistance for aid amounting to US$350,000 over live years for Science teaching equipment; and on 14th January 1966, by the Commonwealth to the United Nations Special Fund for aid amounting to US$ 1, 034,500 over five years in the establishment of a nongraduate secondary teacher training course at Goroka. 2. (i) Teachers in Administration schools - 3. 1,445 indigenous {: type="i" start="b"} 0. 974 expatriate 1. Teachers in subsidised mission schools - 2. 3,561 indigenous (b) 892 expatriate. 3. (a) 132 Administration and 71 mission teachers hold university degrees. (b) 559 Administration and 450 mission teachers hold an Australian or other overseas teachers college qualification; 1,681 Administration (236 expatriate, 1,445 indigenous) and 2,926 mission teachers (260 expatriate, 2,666 indigenous) hold qualifications gained in the Territory. {: type="1" start="4"} 0. With all State Education Departments. 1. Prior to 1965 State teachers under bond were recruited to the Papua and New Guinea Public Service only with the concurrence of the State Education Department concerned, and subject to resignation from the State Service and satisfactory arrangements being made privately for the discharge of bond commitments. On 20th April 1965 an agreement was made with the State Directors of Education in conference at Hobart that persons under bond or contract to State Education Departments would not as a general rule be considered for engagement in the Territory Service. International Conventions: Equal Pay. (Question No. 1714.) {: #subdebate-30-5-s2 .speaker-6U4} ##### Mr Whitlam: m asked the Minister for Labour and National Service, upon notice - {: type="1" start="1"} 0. What further countries have ratified the International Labour Organisation Conventions No. 100, cited as the Equal Remuneration Convention 1951, and No.111, cited as the Discrimination (Employment and Occupation) Convention 1958, since his Department prepared the second edition of its document on equal pay in May 1963? 1. On what occasions, by what means and with what results has the Commonwealth since consulted with any of the States concerning ratification of the conventions? 2. What further Federal and State or Provincial equal pay laws or awards have since been made in (a) Australia, (b) the United States and (c) Canada? 3. What further resolutions on equal pay have since been adopted by the United Nations General Assembly, Economic and Social Council, Commission on the Status of Women and Commission on Human Rights, and how did the Australian representatives vote on these resolutions? {: #subdebate-30-5-s3 .speaker-JTP} ##### Mr Bury:
LP -- The answers to the honorable member's questions are as follows - {: type="1" start="1"} 0. Convention No. 100- Central African Republic Colombia Finland Iraq Israel Malawi Paraguay Convent ion No.111- Brazil Canada Central African Republic Cuba Czechoslovakia Dominican Republic Iceland Iran Italy Jordan Malawi Republic of Mali Islamic Republic of Mauritania Morocco Republic of Viet-Nam {: type="1" start="2"} 0. In relation to consultation with the States concerning ratification of I.L.O. Conventions, the normal practice is for my Department to consult with each of the Stale Departments of Labour as occasion warrants by means of correspondence and through formal and informal discussions. Without a considerable amount of investigation which I do not consider is warranted, it would not be possible to give a detailed account of the various consultations and their results. 3. (a) Australia. There has been no variation in Commonwealth legislation in respect of equal pay since 1963. On 10th September 1964, a minor variation was made to the Federal Textile Industry (Woollen and Worsted Section) Award 1963, granting equal pay in respect of adult female piecers employed in the mule spinning department of Federal Woollen Mills Ltd., Geelong North. On 14th February 1966, the South Australian Teachers Salaries Board handed down an award in respect of salaries of male and female teachers employed by the South Australian Education Department. Women teachers will have their salaries increased from the first pay period in July 1966, in five equal annual instalments until equality with the corresponding salaries for men is achieved in July 1970. The South Australian Government has announced an extension of this principle to encompass other State Government employees performing equal work. The contemplated date of operation of wage adjustments in this area is also July 1966, and will be graduated in the same way as for teachers. The South Australian Government has also announced its intention of extending the equal pay for equal work principle to employees in industries other than the Public Service. {: type="a" start="b"} 0. United States. On 28th May 1963, the United States Equal Pay Bill, amending the Fair Labour Standards Act of 1938, was approved by Congress and became law in June 1964. The Act, however, is of limited application: it applies only to those employees covered by the Fair Labour Standards Act, i.e. those engaged in Interstate commerce or commerce with foreign nations or in the production of goods entering into such commerce. (Since early 1963, the following States have passed equal pay laws: Missouri, Vermont, North Dakota, Oklahoma, West Virginia. 1. Canada. Since early 1963, no new equal pay legislation has been passed in Canada. {: type="1" start="4"} 0. None. National Service Training. (Question No. 1715.) Mr.Whitlam asked the Minister for Labour and National Service, upon notice - {: type="1" start="1"} 0. How many have registered in the last three ballots under the National Service Act? 1. How many were balloted in on each occasion? 2. How many fa) sought and (b) were granted (i) deferment and (ii) exemption on each occasion? 3. How many were (a) medically examined and (b) found unfit on each occasion? {: #subdebate-30-5-s4 .speaker-JTP} ##### Mr Bury:
LP y. - The answers to the honorable member's questions are as follows - 1 and 2. To date there have been three registrations of men turning twenty years of age and at 31st March 1966, the total number who had registered for national service was 122,096, of whom 46,837 were balloted in at ballots conducted after the close of each registration period. {: type="1" start="3"} 0. The information sought is not available for the most recent registration; however, as at 31st December 1965, the number who had been granted exemption - persons with prescribed disabilities, conscientious objectors, theological students, ministers of religion and members of religious orders - was 330; 2,640 had been granted indefinite deferment as married men and 879 as members of the Citizen Forces; and 8,640 students and apprentices were eligible for deferment beyond the date of the last Army intake planned for 1966. 1. At 31st March 1966, a total of 20,340 national service registrants had been medically examined and of this number 7,045 had been found not to meet the medical standards of fitness required for army service. {:#subdebate-30-6} #### Citizen Military Forces. (Question No. 1721.) {: #subdebate-30-6-s0 .speaker-RK4} ##### Mr HAYDEN:
OXLEY, QUEENSLAND · ALP n asked the Minister for the Army, upon notice - {: type="1" start="1"} 0. Did the Government announce recently that volunteers from the Citizen Military Forces would be accepted for service in Vietnam? 1. If so, when was the initial announcement made? 2. How many C.M.F. members of each rank volunteered in each month since the announcement? 3. How many C.M.F. volunteers have been accepted, and how many are now serving in Vietnam? 4. How many members are there serving in each rank of the C.M.F.? {: #subdebate-30-6-s1 .speaker-QS4} ##### Mr Malcolm Fraser:
WANNON, VICTORIA · LP -- The answers to the honorable member's questions are as follows - 1 and 2. The announcement concerned was made on 4th July, 1965. {: type="1" start="3"} 0. Monthly figures of applicants volunteering under the scheme are not available. {: type="1" start="4"} 0. Only 50 of the volunteers were interviewed, as the others clearly did not meet the requirements due to medical, age and other limitations. Again, some of those interviewed had to be rejected for various reasons such as lack of relevant experience, technical specialisation in an area in which there were no 'Vietnam requirement or vacancies and so on: {:#subdebate-30-7} #### Housing Finance. (Question No. 1722.) {: #subdebate-30-7-s0 .speaker-RK4} ##### Mr Hayden: n asked the Minister representing the Minister for Housing, upon notice - {: type="1" start="1"} 0. Is he able to say what insurance companies made funds available for housing in each of the past ten years? 1. If so, what amount was made available by each company? 2. In the case of each company, what percentage of its total investment for each year did the investment in housing represent? 3. What percentage of housing funds came from (a) insurance companies; and (b) other sources, during each of the ten years? {: #subdebate-30-7-s1 .speaker-JTP} ##### Mr Bury:
LP -- The Minister for Housing has provided the following answers to the honorable member's questions - 1, 2 and 3. No figures on these matters are available for individual companies. Figures on total housing loans by all life insurance companies (excluding the Government Insurance Office of New South Wales and the Queensland State Government Insurance Office) have been made available by the Commonwealth Statistician since 1962. Prior to that year no breakup was made between loans for housing and for all real estate. The available figures are as follows - The above figures relate to total new loans, as statistics for total new investments are unavailable. {: type="1" start="4"} 0. The available information on housing loans by insurance companies includes loans on existing housing. No estimates are available on the level of loans on existing housing from all sources. Therefore this question may not be answered. {:#subdebate-30-8} #### Balance of Trade. (Question No. 1741.) {: #subdebate-30-8-s0 .speaker-KXV} ##### Dr Patterson:
DAWSON, QUEENSLAND n asked the Minister for Trade and Industry, upon notice - >What were the aggregate figures for the balance of trade (exports minus imports) during the period 1954-55 to 1964-65 (inclusive) for (a) Queensland (b) Western Australia (c) New South Wales and (d) Victoria? {: #subdebate-30-8-s1 .speaker-009MB} ##### Mr McEwen:
CP -- The answer to the honorable member's question is as follows - >Statistics of interstate trade which are necessary to calculate the balance of trade for an individual State are not available for New South Wales or Victoria. > >For Queensland and Western Australia, the differences between imports and exports (both overseas and interstate) during the period 1954-55 to 1964-65 (inclusive), based on estimates made by the Government Statisticians of those States, were as follows - > >Queensland: Exports exceeded imports by 206 million dollars. > >Western Australia: Imports exceeded exports (including ships' stores) by 328 million dollars. {:#subdebate-30-9} #### Water Conservation. (Question No. 1757.) {: #subdebate-30-9-s0 .speaker-JZX} ##### Mr Collard:
KALGOORLIE, WESTERN AUSTRALIA d asked the Minister for National Development, upon notice - {: type="1" start="1"} 0. Which rivers in the north of Western Australia have been investigated by his Department with a view 10 damming for water conservation for (a) irrigation; (b) power supply; and (c) other purposes? 1. Which of the rivers investigated have been found suitable? {: #subdebate-30-9-s1 .speaker-KDT} ##### Mr Fairbairn:
Minister for National Development · FARRER, NEW SOUTH WALES · LP -- The answers to the honorable member's questions are as follows - {: type="1" start="1"} 0. The Department has co-operated with the Western Australian Government in research into irrigation development of the Ord River basin. It ha* also agreed to carry out joint investigations with that Government in relation to the Gascoyne River. The Commonwealth undertakes activities in these fields only at the request of and in consultation with the Stale. 1. The Ord River region has been found to be suitable for irrigation. {:#subdebate-30-10} #### Export of Motor Vehicles. (Question No. 1767.) {: #subdebate-30-10-s0 .speaker-6U4} ##### Mr Whitlam: m asked the Minister for Trade and Industry, upon notice - {: type="1" start="1"} 0. To what countries does Australia export motor vehicles? 1. In which of these countries must vehicles bc driven on the right hand side of the road and in which of them on the left hand side? 2. How many vehicles did Australia export to each of the countries last year? {: #subdebate-30-10-s1 .speaker-009MB} ##### Mr McEwen:
CP -- The following table shows the countries to which Australia exported complete motor vehicles during 1964-65, and the number of vehicles exported to each country. The countries where, according to industry sources, left hand drive vehicles as distinct from right hand are required, are marked with an asterisk. {:#subdebate-30-11} #### papua : and Nov Guinea: Sales of Motor Vehicles. (Question No. 1769.) {: #subdebate-30-11-s0 .speaker-KXZ} ##### Mr Peters:
SCULLIN, VICTORIA s asked the Minister for Territories, upon notice - {: type="1" start="1"} 0. How many motor cars were sold in the Territory of Papua and New Guinea during each of the last four years? 1. How many of these were (a) Holdens, (b) Japanese cars and (c) other types? {: #subdebate-30-11-s1 .speaker-JOA} ##### Mr Barnes:
CP -- The answers to the honorable member's questions are as follows - {:#subdebate-30-12} #### Citizen Military Forces. (Question No. 1780.) {: #subdebate-30-12-s0 .speaker-6U4} ##### Mr Whitlam: m asked the Minister for the Army, upon notice - >How many applications have been (a) received and (b) accepted for enlistment inthe Citizen Military Forces in each month since June 1963? {: #subdebate-30-12-s1 .speaker-QS4} ##### Mr Malcolm Fraser:
WANNON, VICTORIA · LP -- The answer to the honorable member's question is as follows - {: type="a" start="a"} 0. Applications to join the Citizen Military Forces are made direct to the unit concerned. No central record is kept of the total number of applications received over a particular period. 1. Enlistments, monthly since June 1963 are - {:#subdebate-30-13} #### Australian Military Forces: Political Activities by Members. (Question No. 1782.) {: #subdebate-30-13-s0 .speaker-KXI} ##### Mr Webb: b asked the Minister for the Army, upon notice - >Do military laws or regulations preclude a member of the military forces from participating in any form of political activity or being a member of a political party? {: #subdebate-30-13-s1 .speaker-QS4} ##### Mr Malcolm Fraser:
WANNON, VICTORIA · LP -- The answer to the honorable member's question is as follows - {: type="a" start="a"} 0. Members of the Military Forces are subject to the provisions of Australian Military Regulation 210a. These provisions as they relate to the Permanent Military Forces and the Regular Army Reserve or Citizen Military Forces are - Permanent Military Forces. An officer or soldier of the Permanent Military Forces, other than the Regular Army Reserve, shall not take part in the affairs of any political or municipal organisation or party, either by speaking in public or publishing or distributing literature in furtherance of the purposes of any such organisation or party, or in any other manner. Australian Military Regulation 210a (I) refers. Regular Army Reserve or Citizen Military Forces. An officer or soldier of the Regular Army Reserve or Citizen Military Forces shall not use his military rank when taking part in any activity of a political nature or in connection with any municipal or other local government council or corporation. Australian Military Regulation 210a (2) refers. {: type="a" start="b"} 0. However, there is nothing to prevent a member of the Military Forces being a member of a political party provided he or she complies with the above mentioned regulation where applicable. {:#subdebate-30-14} #### Pensions. (Question No. 1793.) {: #subdebate-30-14-s0 .speaker-JZX} ##### Mr Collard: d asked the Minister for Social Services, upon notice - {: type="1" start="1"} 0. Will he recommend an amendment of the Social Services Act to provide for the setting up of a medical board or some such body to determine disputed invalid pension claims? 1. Will he also recommend the deletion of that part of the Act which prevents a person from being eligible for an invalid pension if the degree of incapacity is less than 85 per cent. and the insertion of a provision whereby the pension will be granted when a medical officer or a medical board finds [he incapacity is such as to warrant a pension? {: #subdebate-30-14-s1 .speaker-5E4} ##### Mr Sinclair:
Minister for Social Services · NEW ENGLAND, NEW SOUTH WALES · CP -- The answers to the honorable member's questions are as follows - {: type="1" start="1"} 0. The question of establishing a medical board to determine disputed invalid pension claims has been considered in the past. The view has been held, however, that the existing procedures for dealing with these cases are quite adequate. This view is still held. When a person appeals against a decision that he is not eligible for invalid pension on medical grounds the case is reviewed in the light of new evidence and, if necessary a further medical examination is arranged. Specialists' reports, X-ray reports, electrocardiograms etc. arc obtained and made available to the examining doctor if it is considered that these will assist him in reaching a decision. 1. A medical officer or a medical board would require some criteria to determine whether or not the person's incapacity was such as to warrant a pension. The Government considers that the present criteria that a person must be permanently incapacitated for work to the extent of at least 85 per cent. to qualify for invalid pension is suitable. {:#subdebate-30-15} #### Vietnam: Australian Casualties. (Question No. 1796.) {: #subdebate-30-15-s0 .speaker-KCI} ##### Mr Devine:
EAST SYDNEY, NEW SOUTH WALES e asked the Minister for Defence, upon notice - {: type="1" start="1"} 0. How many casualties amongst the Australian forces serving in Vietnam arose from the following causes: (a) killed in action, (b) death from other causes, (c) wounded in action. (d) infectious diseases, (e) skin complaints, (f) anxiety neurosis and (g) malaria? 1. How many members of the armed forces have been repatriated to Australia as unfit because of disabilities (c), (d), (e), (f) and (g)? 2. How many members of the forces have been discharged medically unfit as a result of disabilities arising from service in Vietnam? {: #subdebate-30-15-s1 .speaker-KEN} ##### Mr Fairhall:
LP -- The answers to the honorable member's questions are as follows - {: type="1" start="1"} 0. To end of May 1966 casualties among Australian forces were - {: type="1" start="2"} 0. Numbers repatriated to Australia as unfit at end of May 1966 - {: type="1" start="3"} 0. Number discharged medically unfit as a result of disabilities arising from service in Vietnam - {:#subdebate-30-16} #### Port Moresby Airport: Use by French Military Aircraft. (Question No. 1797.) {: #subdebate-30-16-s0 .speaker-6U4} ##### Mr Whitlam: m asked the Prime Minister, upon notice - {: type="1" start="1"} 0. What departments were consulted before permission was given for French military aircraft to land at Port Moresby in April 1966? 1. What were the route and purposes of the flight as disclosed by the French Government? {: #subdebate-30-16-s1 .speaker-009MC} ##### Mr Harold Holt:
LP -- The answers to the honorable member's questions are as follows - {: type="1" start="1"} 0. The matter was the subject of full consultation between departments concerned with the arrangements for transit and entry. Other departments with particular interests were also consulted. 1. Zamboanga (or Biak) - Port Moresby - Nandi. The French Government indicated that the aircraft would have no direct role in the French nuclear tests, that they carried no nuclear materials and that their function would be surveillance of the area to facilitate safety precautions. Pensions. (Question No. J 804.) {: #subdebate-30-16-s2 .speaker-6V4} ##### Mr Daly:
GRAYNDLER, NEW SOUTH WALES y asked the Minister for Social Services, upon notice - {: type="1" start="1"} 0. Has he received a request from **Mrs. I.** Ellis, Honorary Secretary, Australian Commonwealth Pensioners' Federation, for a substantial increase in pensions in order to protect the lives and wellbeing of pensioners and to put value back into the pension? 1. If so, will he give urgent and favorable consideration to this request? {: #subdebate-30-16-s3 .speaker-5E4} ##### Mr Sinclair:
CP -- The answers to the honorable member's questions are as follows - {: type="1" start="1"} 0. A deputation of **Mrs. M.** Barraud, **President, Mrs. I.** Ellis, Honorary Secretary, and other State representatives of the Australian Commonwealth Pensioners' Federation submitted a number of proposed alterations to Commonwealth social service benefits to me on 4th May 1966. Included in these proposals was a request for an increase in the rates of pensions. 1. The submission will be considered as a part of the general review of social services that will be made shortly in connection with the preparation of the next Budget. Film Censorship. ( Question No. 1806.) {: #subdebate-30-16-s4 .speaker-KUX} ##### Mr Stewart:
LANG, NEW SOUTH WALES t asked the Minister representing the Minister for Customs and Excise, upon notice - {: type="1" start="1"} 0. Has the Minister's attention been drawn to complaints regarding certain scenes in a film entitled "Genghis Khan"? 1. Was this film classified as suitable for general exhibition? 2. Arc the scenes which are the subject of complaint considered to come within this category? 3. Has any action been taken to reclassify the film? If not, why not? {: #subdebate-30-16-s5 .speaker-0095J} ##### Mr Howson:
LP -- The Minister for Customs and Excise has supplied the following answers to the honorable member's questions - {: type="1" start="1"} 0. Yes. 1. No. The film was classified by the Film Censorship Board as "Not Suitable for Children ". However, the classification was incorrectly shown in advertisements in certain suburban newspapers in Sydney as " For General Exhibition ". The error was brought to the notice of the importer of the film who immediately took stepsto prevent such errors in the future. 2. No. 3. See 2. {:#subdebate-30-17} #### National Service Training. (Question No. 1809.) {: #subdebate-30-17-s0 .speaker-1V4} ##### Dr J F Cairns:
YARRA, VICTORIA · ALP rns asked the Minister for the Army, upon notice - {: type="1" start="1"} 0. Have any national service trainees died during training in Australia? 1. If so. where did the deaths occur, and what were their causes? {: #subdebate-30-17-s1 .speaker-QS4} ##### Mr Malcolm Fraser:
WANNON, VICTORIA · LP -- The answers to the honorable member's questions are as follows - {: type="1" start="1"} 0. Four national servicemen have died in civilian motor vehicle accidents during their period of training. All members were on leave from their units at the lime of the accidents. 1. The deaths occurred as follows - {: type="a" start="a"} 0. near Yass, New South Wales - 14-15th April, 1966. 1. East Kurrajong, New South Wales- 2nd April, 1966. 2. Southport, Queensland - 5th January, 1966. 3. Seymour, Victoria - 8th November, 1965. {:#subdebate-30-18} #### Taxation. (Question No. 1810.) {: #subdebate-30-18-s0 .speaker-JO8} ##### Mr Barnard:
BASS, TASMANIA d asked the Treasurer, upon notice - >What was the total amount of concessional deductions in respect of educational costs allowed for income tax purposes during the year 1964-65? {: #subdebate-30-18-s1 .speaker-009MA} ##### Mr McMahon:
LP -- The answer to the honorable member's question is as follows - >Amounts of education expenses allowed at deductions for income tax purposes have not yet been tabulated for the 1964-65 income year. > >The latest year for which information is available in relation to education expenses is the 1961-62 income year. For that year deductions approximating a total of £80,000,000 ($160,000,000) were allowed in assessments. Information for the 1963-64 income year will be tabulated within the next few weeks, and will be included in the next report to Parliament by the Commissioner of Taxation. {:#subdebate-30-19} #### Papua and New Guinea: Education. (Question No. 1814.) {: #subdebate-30-19-s0 .speaker-K9M} ##### Mr L R Johnson:
HUGHES, NEW SOUTH WALES son asked the Minister for Territories, upon notice - {: type="1" start="1"} 0. How many resignations have been received from school teachers serving in the Territory of Papua and New Guinea during (a) each of the last five years and (b) 1966? 1. What is the (a) basis and (b) rate of salary paid to male and female teachers, and how do they compare with teachers' salaries paid on the mainland? 2. What number of periods is taught each week by high school teachers in the Territory, and are many more periods taught per Territory teacher per week than is the case with mainland high school teachers? 3. What minimum accommodation is available to Territory teachers and on what conditions is it available? {: #subdebate-30-19-s1 .speaker-JOA} ##### Mr Barnes:
CP -- The answers to the honorable member's questions are as follows - 2. (a) Salary rates for overseas teachers in the Territory are set at levels which are broadly comparable with the rates applying to similar positions on Slats teaching services. (b) Territory salary ranges are - Education Officer Grade I - $2,476-$4,184 per annum male $2,074-$3,782 per annum female Education Officer Grade II - $4,l84-$4,428 per annum male $3,782-$4,020 per annum female Education Officer GradeIII - $4,694-$4,982 per annum male $4,392-$4,580 per annum female In addition to salary, officers receive an overseas allowance ranging from $500 to $600 per annum (unmarried persons) or $860 to $960 per annum (married males) depending on the length of service in the Territory. An appointee receives a commencing salary within the appropriate range at the increment*) point (excluding overseas allowance) whichis next above the salary currently being received is Australia. Where a person is seconded from a State teaching service, he commences at a salary (excluding overseas allowance) corresponding to the salary received in Australia provided that the rate .so determined does not exceed the maximum of the appropriate Territory salary range. Generally rates for overseas teachers in the Territory compare favorably with those paid to their counterparts in the States. If overseas allowances are added, the comparison is more than favorable. {: type="1" start="3"} 0. 33 to 36 periods excluding periods for sporting activities arc taught weekly in the Territory high schools as against an average of 30 to 33 periods excluding three periods for sporting activities in most States except New South Wales where the average is 28 periods excluding three sports periods. 1. Married teachers are provided wilh two or three bedroom residences and single teachers are accommodated in hostels or two bedroom bungalows on a share basis. Minimum standard single officer accommodation is also provided at some high schools. The present maximum rental charge for married accommodation is $416 per annum. A married teacher occupying such accommodation receives u rent allowance of $320 per annum. A nominal charge is made for single accommodation and varies according to the type of accommodation allocated. In certain circumstances there is also provision for the payment of a rental allowance of $200 per annum to a single teacher. Communist China. (Question No. 1825.) i)r. J. F. Cairns asked the Minister for External Affairs, upon notice - >Did he say on 10th May in answer to a question (' Ilansard ", page 1603) that the statement that the Chinese intended to destroy half mankind by aggressive warfare is on record in the mouth of the Chinese? > >If so. can he say when and by whom this statement was made? {: #subdebate-30-19-s2 .speaker-ZL6} ##### Mr Hasluck:
LP k. - The answers to the honorable member's questions are as follows - {: type="1" start="1"} 0. My essential point was contained in my statement that: "The new nuclear power, China, has shown a complete unwillingness to join in a nuclear test ban treaty, has spoken of a nuclear test ban treaty with contempt and disregard and has made these statements which, interpreted, mean that so far as the Chinese arc concerned the loss of millions nf lives is not going to cause them a great dismay because they imagine that the lives will be lost in other countries rather than in China." 1. 1 would refer the honorable member to the Article " Long Live Leninism " which appeared in " Red Flag " - the theoretical journal of the Chinese Communist Party - on 16th April i960, and to Mao Tse-tung's statement at the 1957 Moscow meeting of Communist and Workers' Parties. Indian Students. {: #subdebate-30-19-s3 .speaker-ZL6} ##### Mr Hasluck:
LP k. - On 28th April, the honorable member for Fremantle **(Mr. Beazley)** asked me a question about the training of technicians from India at the John Curtin School of Medical Research of the Australian National University. I said that I was aware that my Department had some part in this activity and promised to give the honorable member a fuller answer. I now supply the following additional information - >In August 1961, the Department of External Affairs received a request from India for assistance in establishing a workshop unit to service all departments of the All India Institute of Medical Sciences, New Delhi. As a first step approval was later given for a visit to India by **Mr. J.** B. Wight, Workshop Manager at the John Curtin School of Medical Research to examine the needs of the project > > **Mr. Wight** recommended that the project be undertaken in three stages, so that the completion of training of technicians would coincide with the availability of facilities in India. > >Under Stage I, **Mr. Wight** provided a list of technical qualifications to form the basis of advertisements in India by the Institute to fill fourteen positions for which training would be provided in Australia. > >Between June and August 1964, eleven selected technicians came to Australia on Colombo Plan Fellowships for training periods of from six to twelve months at the John Curtin School of Medical Research. A twelfth technician arrived in March 1965. The timing of the training in Australia was determined by progress made on the construction of the medical workshop buildings. The two senior technicians and one other returned to India in November and December 1965, and the rest of the group in February 1966. The twelfth trainee is expected to complete training in late May and one senior technician is still expected. > >Advertisements for technicians under Stages II and III were published in New Delhi during March 1966. Their selection is timed to coincide with a further visit to New Delhi by **Mr. J.** B. Wight later this year. > >Stages 11 and III provide for the recruitment of a further thirteen technicians, most of whom will probably be trained at the John Curtin School. Their confirmed training period and recommendation whether they should train in Australia or not will be decided by **Mr. Wight** after interviews and discussions at the Institute. > >Australia also provided $A 1 22,000 worth of workshop equipment for the Institute. The costs of the workshop building were met from counterpart funds derived from gifts of commodities provided by Australia under the Colombo Plan. > >As regards the training of Indian technicians in other fields, the view was accepted at the 1962 Colombo Plan Consultative Committee meeting that technician training is usually best undertaken in an environment similar to the trainee's own country. As a result of discussion at the meeting the position is that Australia, in preference to training technicians in Australia under the Colombo Plan, in general prefers to encourage the development of technician training within South and South East Asia. Exceptions are made, as in the case of the medical technicians, when the training required is noi readily available within South and South East Asia. Should a further request for the useful training of Indian technicians in Australia be received, sympathetic consideration would be given to it in the light of these considerations. United Nations. {: #subdebate-30-19-s4 .speaker-009MC} ##### Mr Harold Holt:
LP t.- On 13th May in reply lo a question without notice from the honorable member for Shortland **(Mr. Griffiths),** I. said that I would discuss with my colleague, the Minister for External Affairs, the question of inviting the SecretaryGeneral of the United Nations, U Thant, to visit Australia. When my colleague was in New York in November 1964, as leader of the Australian Delegation to the General Assembly, he personally invited the SecretaryGeneral of the United Nations Organisation, U Thant, on behalf of the Government, to visit Australia at a time convenient to him. The Secretary-General expressed his appreciation of this offer, although he could not at that time see when a convenient opportunity would arise for such a visit. I am aware of the wide interest which would be shown in a visit by the SecretaryGeneral lo Australia and naturally our invitation lo him still stands. We continue to hope that it will be possible for U Thant to come, and I can assure the honorable member that we will continue to look for a mutually convenient time for a visit. Communism. **Mr. Harold** Holt__ On 23rd March the honorable member for Mackellar **(Mr. Wentworth)** asked me a question without notice about an alleged letter from the Russian Communist Party to all Communist Parties in the world accusing China of being an aggressive, war-mongering power aiming at making world war. I undertook to supply him with as much information as I could, following investigation of the matter. For obvious reasons, the Australian Government did not receive a copy of the letter and our knowledge of it derives from ils publication in the West German newspaper " Die VVelt ". In addition to canvassing certain areas of the Sino-Soviet dispute - for example, borders and lack of coordination of military assistance to North Vietnam - it stares that " there are good reasons for thinking one of the objects of policy pursued by the Chinese leadership towards Vietnam is to provoke military conflict between U.S.S.R. and U.S.A.; in their own words - ' To watch, sitting on the mountain peak, the struggle of the tigers ' ". The balance of the letter is a lengthily reasoned indictment of the Chinese for neglecting the interests of the international communist movement in favour of a " National great-power policy ". In view of the facts known about the Sino-Soviet dispute the letter is assessed as authentic. The Russians have made no effort to deny the text as printed in " Die Welt " and the Communist Chinese in a letter to the Central Committee of the Communist Party of the Soviet Union dated 22nd March 1966 (in which they rejected an invitation to attend the 23rd Congress of the Communist Party of the Soviet Union) referred to the distribution of " . . .an antiChinese document in the Soviet Union both inside and outside the Party . . . ". They also referred to an anti-Chinese letter sent to other Communist Parties by the Communist Party of the Soviet Union instigating them to join the U.S.S.R. in opposing China. The significance of the letter lies in the Soviet concern at present militant Chinese policies which have serious implications not only for the Soviet Union but for other countries. {:#subdebate-30-20} #### Aluminium. (Question No. 1618.) {: #subdebate-30-20-s0 .speaker-RK4} ##### Mr Hayden: n asked the Minister for National Development, upon notice - ls he able la supply the following statistic* wilh respect to the countries of the world which produce alumina - {: type="a" start="a"} 0. What quantities were produced in each country during each of the past five years? (to) Did production in each case take place at full plant capacity; if not, at what percentage of full capacity did (he various countries operate? (c.) What quantities of alumina did each of those countries export during each of those years? {: #subdebate-30-20-s1 .speaker-KDT} ##### Mr Fairbairn:
LP -- The answer to the honorable member's question is as follows - {: type="a" start="a"} 0. Complete data on world alumina production by countries during the past five years is not available. Statistics relating to certain European countries and the United States are published by Metallgesellschaft A.G., and these are shown, where possible up to 1964, in the following table. Production figures for these countries during 1963 are not yet available. In the above table, in the case of countries having as yet no primary aluminium facilities, exports arc taken as an indication of production. {: type="a" start="b"} 0. The alumina production capacities of major producing countries have been published for the years 1962 and l'964, and arc given in the following table. A major addition to the above table is tha new Alcoa alumina facility in Surinam, with a capacity of 400,000 tons per annum scheduled by December 1965, and with a further 200,000 tons per annum to be added by mid-1966. Free world alumina production capacity has been expanding at an average rate of about 8 per cent, per annum during the past decade. This is in keeping with the average annual rate of expansion of the aluminium industry, which is expected to continue at least until 1970. Most of the major aluminium companies produce their own alumina, sufficient for their primary metal production requirements, but do not publish alumina production figures - Alcan Aluminium Limited, in addition to its alumina plant at Arvida, Canada, has subsidiary alumina facilities in Jamaica and British Guiana. In the absence of data relative to production, it is difficult to arrive at exact figures representing the percentages of full capacity at which the countries operated during the past five years. Some idea of the percentage use of capacity may be obtained from finding the relationship between production (shown in Table 1 above) and rated capacity (shown in Table 2 above). However, no producing unit reaches full rated capacity immediately. Such phenomena as industrial stoppages, technological problems in adjusting equipment to requirements of its base feed material, general running in mechanical problems, and maintenance all tendto distort any pure comparison between production and rated capacity at any particular lime. {: type="a" start="c"} 0. The quantities of alumina exported by the major producing countries during the years 1959 to 1964 are as follows - {:#subdebate-30-21} #### Aluminium. (Question No. 1619.) {: #subdebate-30-21-s0 .speaker-RK4} ##### Mr Hayden: n asked the Minister for National Development, upon notice - {: type="1" start="1"} 0. Is he able to supply the following statistics with respect to the countries of the world which produce primary aluminium - {: type="a" start="a"} 0. What quantity was produced in each country during each of the past five years? 1. Did each of these countries produce at full plant capacity; if not, at what percentage of full capacity did the various countries operate? 2. What quantities of primary aluminium did each of these countries export during these years? 1. What was the world consumption of primary aluminium during each of the past five years? {: #subdebate-30-21-s1 .speaker-KDT} ##### Mr Fairbairn:
LP -- The answers to the honorable member's questions are as follows - 1. (a) The following table sets out the production of primary aluminium by the major producing countries during the years 1960 to 1964 inclusive. Data for 1963 have been included where possible; however, for most countries these are as yet unavailable. {: type="a" start="b"} 0. World primary aluminium production capacity has been steadily expanding during recent years, and this expansion is continuing. Comprehensive data on world primary aluminium production capacity (by countries) are available lor the years 1962 and 1964 only. The- following table summarises this information and includes the 1965 capacities of the United States and Australia. In the absence of complete data relative to production and rated capacity it is not possible to arrive at exact figures representing the percentages of full capacity at which the countries operated during each of the last five years. Some idea of the percentage use of capacity may be obtained by finding the relationship between production (shown in Table 1 above) and rated capacity (shown in Table 2 above). However such figures can be misleading, as a number of factors, including demand, affect rata of production. For instance, no producing unit reaches full rated capacity immediately. Phenomena such as general running in mechanical problems in relation to new equipment, maintenance, and factors such as industrial stoppages, all tend to distort any pure comparison between production and rated capacity at any particular time. {: type="1" start="2"} 0. World consumption of primary aluminium by countries during the five years 1960 to 1964 is given in Table 4. {:#subdebate-30-22} #### Aluminium. (Question No. 1620.) {: #subdebate-30-22-s0 .speaker-RK4} ##### Mr Hayden: n asked the Minister for National Development, upon notice - {: type="1" start="1"} 0. What is the anticipated world consumption of primary aluminium during each of the next five years? 1. What are the known details of plans in hand in the various countries of the world to expand the productive capacity of present plant or to establish new plant for the production of primary aluminium? {: #subdebate-30-22-s1 .speaker-KDT} ##### Mr Fairbairn:
LP -- The answers to the honorable member's questions are as follows - {: type="A" start="I"} 0. There have been various estimates of tha expected increase in primary aluminium consumption during the next live years. Industry observers in the United States have estimated growth rates in domestic consumption in the range of 5-6 per cent., and in world consumption at the rate of 7-8 per cent, per annum. In the past decade tha average annual rate of increase in world consumption has been 8 per cent.; in the six years 1959- 64 the rale was slightly higher at about 9 per cent. On the basis of annual growth rate projection of 8 per cent, and 9 per cent., demand in the years 1965 to 1970 might be expected to be of the following order when based on estimated Free World consumption and estimated total world consumption of primary aluminium in 1964. {: type="1" start="2"} 0. Information on current and projected programmes for expansion of primary aluminium production capacities in all countries is incomplete. The following table summarises as far as known in early 1966 programmes completed, current, or projected since 1964. The capacities in various countries at the end of . 1964 are contained in the answer toquestion 1619. The increases involve either the construction of new plant or the extension of existing plant. With the exception of Rumania, there appears to be no published information on new projects in the Sovietsphere of countries. The Union of Socialist Soviet Republics has been expanding its aluminium facilities very rapidly in recent years. Estimates have placed Russia's primary aluminium output in 1964 at between 1.2 million and 1. 35 million metric tons, compared with 0.75-0.90 million metric tons in I960. Preliminary estimates place total world production of primary aluminium in 1965 at 6.4 million long tons; of this about 1.5 million long tons would have bren produced by the Communist countries, If »ing 4.9 million tons produced in the Free World. Based on the above table, Free World capacity in 1970 should be about 7.6 million tons, which may be compared with expected Free World demand in the region of 7.1-7.S million tons by thai year. {:#subdebate-30-23} #### Aluminium. (Question No. 1621.) {: #subdebate-30-23-s0 .speaker-RK4} ##### Mr Hayden: n asked the Minister for National Development, upon notice - {: type="1" start="1"} 0. ls he able to stale the countries of the world in which primary aluminium is produced by smelting reclaimed used aluminium? 1. If so, what quantities of primary aluminium have been produced in this way during each of the past five years? {: #subdebate-30-23-s1 .speaker-KDT} ##### Mr Fairbairn:
LP -- The answers to the honorable member's questions are as follows - {: type="1" start="1"} 0. Most countries, which produce primary aluminium, also have facilities for the production of the metal by the smelting of reclaimed used aluminium. Aluminium produced in this way is known as secondary aluminium. The term primary aluminium refers only to the metal produced by the reduction of alumina, which has been refined from bauxite or other aluminous, naturally occuring, material. 1. Production of secondary aluminium during the years 1960 lo 1964 is available only a- shown in the following table. Australian production is available on a fiscal year basis only, as follows: - {:#subdebate-30-24} #### Department of National Development. (Question No. J 653.) {: #subdebate-30-24-s0 .speaker-KXV} ##### Dr Patterson: n asked the Minister for National Development, upon notice - >What policy issues has the Policy Examination Branch of the Northern Division been examining since the Branch was formed, and what resultant action has been taken by the Government on any recommendations originated by this Branch? {: #subdebate-30-24-s1 .speaker-KDT} ##### Mr Fairbairn:
LP -- The answer lo the honorable member's question is as follows - >Since its formation the Northern Division has undertaken the examination of a number of policy issues and a number of proposals related to development of the north. Investigations are carried out by the Northern Division in association with other Government Departments concerned with the issues under investigation. This work is of a continuing nature and, where appropriate, Government decisions on matters that have bees examined by the Northern Division and other interested Departments, such as the recently announced decisions to participate in further brigalow development in Queensland and further beef road works in Queensland and Western Australia, are made public from time to time. {:#subdebate-30-25} #### Ord River Scheme. (Question No. 1654.) {: #subdebate-30-25-s0 .speaker-KXV} ##### Dr Patterson: n asked the Minister for National Development, upon notice - {: type="1" start="1"} 0. What are the names and ranks of the committee officers who have been officially nominated by the heads of departments to advise the Government on the future of the Ord River Scheme? 1. What amount of time has each officially nominated officer, other than any representatives of the Commonwealth Scientific and Industrial Research Organisation spent in the Ord area in the last four years, and what was the purpose of his work in the area in each case? 2. What was the date of each officer's nomination by his department? {: #subdebate-30-25-s1 .speaker-KDT} ##### Mr Fairbairn:
LP -- The answer to the honorable members questions is as follows - >The application by Western Australia for further financial assistance for the Ord River Project was referred to an Inter-departmental Committee for examination and report to the Government. It would not be appropriate - nor is it the practice - to disclose the names of the various officers representing their Departments at the Committee's meetings. {:#subdebate-30-26} #### Gascoyne River Irrigation Project. (Question No. 1694.) {: #subdebate-30-26-s0 .speaker-JZX} ##### Mr Collard: d asked the Minister for National Development, upon notice - {: type="1" start="1"} 0. Have discussions taken place between representatives of the Commonwealth and representatives of the Western Australian Government regarding the damming of the Gascoyne River in Western Australia? If so, when did the discussions take place and was any request made by Western Australia for financial assistance? 1. If such a request for financial assistance was made, has any decision been reached on the matter? 2. Has this Department made an examination of the possibilities of damming the Gascoyne? If so, is the project favoured? {: #subdebate-30-26-s1 .speaker-KDT} ##### Mr Fairbairn:
LP -- The answers to the honorable member's questions are as follows - 1 and 2. Preliminary discussions have taken place on several occasions between officers of the Northern Division of my Department and representatives of the Western Australian Government on proposals for enlarging the irrigation area on the Gascoyne River' in Western Australia. The Commonwealth has now agreed to a request from the Western Australian Government for a joint investigation by Commonwealth and State officers of this project. No request has been made by the Western Australian Government for financial assistance. {: type="1" start="3"} 0. As the examination has not yet commenced I am not in a position to state whether the project is favoured by the Commonwealth Government. {:#subdebate-30-27} #### Television. (Question No. 1765.) {: #subdebate-30-27-s0 .speaker-KUX} ##### Mr Stewart: t asked the PostmasterGeneral, upon notice - {: type="1" start="1"} 0. Is he able to say how many adults watch television in each of the capital cities nightly between the times of (a) 6.30 p.m. and 7.30 p.m.. (b) 7.30 p.m. and 8.30 p.m., (c) 8.30 p.m. and 9.30 p.m., (d) 9.30 p.m. and 10.30 p.m.? 1. If so, what is the source of this information, and when was it compiled? {: #subdebate-30-27-s1 .speaker-KIF} ##### Mr Hulme:
Postmaster-General · PETRIE, QUEENSLAND · LP -- The answers to the honorable member's questions are as follows - 1, The following arc estimates of the numbers of adults viewing television in capital cities - Estimates for Perth arc not available in the same detail but it is reasonable to say that the television audience between 6.30 p.m. and 10.30 p.m. would contain on average about 125,000 adults. {: type="1" start="2"} 0. The figures are based on surveys made by The McNair Survey Pty. Ltd. during February and March 1966. Figures in respect of Hobart are unavailable as no surveys are conducted in that city. Kyneton Telephone Exchange. (Question No. 1771.) {: #subdebate-30-27-s2 .speaker-JOO} ##### Mr Beaton:
BENDIGO, VICTORIA n asked the Postmaster- General, upon notice - {: type="1" start="1"} 0. What was the cost of the new telephone exchange building at Kyneton? 1. What is the estimated cost of equipping the exchange? 2. What type of equipment will be installed? 3. What is the estimated cost of the coaxial cable to be provided to service the exchange? 4. What is the approximate route of the cable? {: #subdebate-30-27-s3 .speaker-KIF} ##### Mr Hulme:
LP -- The answers to the honorable member's questions are as follows - {: type="1" start="1"} 0. The contract price was $83,640. However, actual completion costs have not yet been determined. 1. $200,000 for the exchange plus an addi tional $30,000 for new manual trunk and special assistance positions. 2. 1,000 lines of the new standard automatic switching equipment together with new operatorcontrolled trunk and special assistance positions. 3. The estimated cost of a cable to serve Kyneton and a number of other centres along the route is approximately $1,000,000. This includes the cost of associated multi-channel equipment. {: type="1" start="5"} 0. The approximate route of the cable will be Melbourne - Sunbury - Macedon - Woodend - Kyneton (approximately 62 miles). {:#subdebate-30-28} #### Postage Rales. (Question No. 1805.) {: #subdebate-30-28-s0 .speaker-6U4} ##### Mr Whitlam: m asked the PostmasterGeneral, upon notice - {: type="A" start="I"} 0. Did he inform the Geological Society of Australia that it cannot receive concession postage rales on its publications if they again contain photographic reproductions which are printed overseas? {: type="1" start="2"} 0. Are these photographic reproductions printed overseas because the process involved, which captures the fine detail necessary for scientific work, is not available in Australia? 1. If this is the case, what are the reasons for his decision? {: #subdebate-30-28-s1 .speaker-KIF} ##### Mr Hulme:
LP e. - The answers to the honorable member's questions are as follows - {: type="1" start="1"} 0. Yes. He was also advised that a supplement lo a registered publication may, however, be printed overseas. 1. The Geological Society has intimated thai it desires lo have the photographic reproductions in question printed overseas because the particular process involved is not available in Australia. 2. The concession postage rates extended to Australian publications which qualify for postal registration were introduced to encourage the Australian printing and publishing industry and as an aid to the dissemination of news and information throughout the community. The extent of overseas printing allowed in registered publications is therefore limited to material included by way of a supplement. For these reasons, the Editor of the Journal of the Geological Society was advised that overseas reproductions could not be enclosed in a registered periodical in the manner desired.

Cite as: Australia, House of Representatives, Debates, 16 August 1966, viewed 22 October 2017, <http://historichansard.net/hofreps/1966/19660816_reps_25_hor52/>.

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