House of Representatives
12 August 1969

26th Parliament · 2nd Session

  1. House of Representatives
  2. 26th Parliament
  3. 1969

Mr SPEAKER (Hon. W. J. Aston) took the chair at 3.30 p.m., and read prayers.

page 3

COMMISSION TO ADMINISTER OATH

Mr SPEAKER:

-I have received from His Excellency the Governor-General a commission authorising me to administer to members of the House the oath or affirmation of allegiance. I now lay the commission on the table.

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ELECTORAL

Divisions of Bendigo and Gwydir - Returns to Writs:

Members Sworn

Mr SPEAKER:

– I have received returns to the writs which I issued on 30th April and 1st May respectively for the election of members to serve for the electoral divisions of Bendigo in the State of Victoria and Gwydir in the State of New South Wales, to fill vacancies caused by the resignations of Noel Lawrence Beaton and

Archibald Ian Allan. By the endorsements on the writs it is certified that Andrew David Kennedy has been elected to serve as the member for the Division of Bendigo and that Ralph James Dunnet Hunt has been elected to serve as the member for the Division of Gwydir.

Mr Ralph James Dunnet Hunt was introduced and made and subscribed the oath of allegiance as member for the Division of Gwydir, New South Wales.

Mr Andrew David Kennedy was introduced and made and subscribed the oath of allegiance as member for the Division of Bendigo, Victoria.

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PETITIONS

National Service

Mr CLYDE CAMERON presented a petition from certain electors of the State of South Australia showing that John Zarb a 20-year-old Melbourne postman, is imprisoned in Pentridge Gaol for failure to comply with the National Service Act, an Act which offends the conscience of many electors who are not directly touched by its provisions; that his failure to comply with the Act was done as a matter of conscience, and that his imprisonment must therefore cause concern to all electors who oppose the National Service Act, and the decision to send conscripted troops to Vietnam.

The petitioners pray that the House of Representatives will repeal the National Service Act, and cause John Zarb, and all others imprisoned under it, to be released.

Petition received and read.

Medical Benefits

Mr BOSMAN presented a petition from certain electors of the Commonwealth showing that physiotherapy is not amongst the items included for Commonwealth benefit under the health insurance scheme.

The petitioners pray that adequate refund for physiotherapy treatment ordered by a registered medical practitioner may be included in the Commonwealth benefit scheme in like manner to other medical benefits.

Petition received and read.

Peace and Disarmament

Mr HOWSON presented a petition from certain citizens of the State of Victoria showing that the establishment by the Government of a Ministry of Peace and Disarmament would:

  1. promote discussion of disarmament plans with Government leaders in our own and other countries and lead to the establishment by other governments of similar Ministries;
  2. assist the United Nations in achieving peace throughout the world;
  3. enable the Government to publicise the benefits of disarmament and encourage the dissemination of such publicity through newspapers and television; and
  4. encourage all people to strive for peace and settle their problems by means other than war.

The petitioners pray that the House of Representatives will do everything within its power to ensure that the Government will establish a Ministry of Peace and Disarmament to:

  1. communicate with other governments and the United Nations in order to bring about total disarmament;
  2. prepare and distribute a trial programme for universal disarmament; and
  3. carry out research into the industrial problems which disarmament would create and develop solutions to these problems.

Petition received.

page 4

QUESTION

HEALTH INSURANCE FUNDS

Mr WHITLAM:
WERRIWA, NEW SOUTH WALES

– I ask the Minister for

Health a question. Does he recall the assurance he gave me in a letter on 9th May that ‘should any instances occur in the future where publicity directed to purely political objectives is undertaken or financed by any registered medical or hospital benefit organisation, I will certainly see that appropriate action is taken’? I now ask him whether his attention has been drawn to reports that the Hospitals Contribution Fund of Australia and other health insurance organisations registered with his Department intend to participate actively in the coming House of Representatives election and to appropriate contributors’ funds for this purpose. Will he reiterate his undertaking to take action against political activities by these organisations to which people of all political views must at present contribute if they are to receive assistance from the Commonwealth in meeting their health costs?

Dr FORBES:
Minister for Health · BARKER, SOUTH AUSTRALIA · LP

– I did give the honourable member the assurance that he sought, and I took an earlier opportunity at the last meeting of the Commonwealth Health Insurance Council to reiterate and explain the views that the Government and I hold on this matter. The matter raised by him today has not been brought to my attention. If it is, I willlook at it. I think the House should take into account that the executives and boards of the health insurance funds are composed of a lot of honourable men who perform selfless work, many in an honorary capacity. They have been subjected to a tirade of abuse and misrepresentation by the honourable gentleman and his colleagues in the Labor Party over a long period of time simply to serve the political purposes of honourable members opposite. Most of the allegations made against officers of these funds were rejected by the Nimmo Committee in its report. If the honourable gentleman is to behave in this way for bis own political purposes he should not scream if occasionally these people move to defend themselves and to explain their position.

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QUESTION

DEMONSTRATIONS

Mr JESS:
LA TROBE, VICTORIA

– Is the Minister for the Army aware that in the programme This Day Tonight’ screened on ABV2 in Melbourne on 4th July this year the statement was made that during a demonstration that day outside the American Consulate in Melbourne troops had been standing by with fixed bayonets, although later that night the Australian Broadcasting Commission reported that this was incorrect? Can the Minister advise how this statement came to be made? Was it founded on fact? Was this claim repeated on 24th July in an article published in ‘Broadside’? Will the Minister advise the House and the country of the truth of these statements?

Mr LYNCH:
Minister for the Army · FLINDERS, VICTORIA · LP

– I welcome the opportunity to comment on this matter. It is certainly true that some currency was given to reports that troops of Southern Command were on stand-by to prepare for and to control demonstrations which had been planned to be held against the Vietnam war on 4th July 1969. I take this opportunity to assure the House that the reports were completely unfounded. I understand that they were generated as a result of a planned programme of political propaganda directed at the Army through the Melbourne news media by left wing dissident groups which were involved in the demonstrations. False information of the disposition of troops in Southern Command was given to most of the Melbourne news media but when this information was referred to Headquarters, Southern Command, it was immediately denied by that Headquarters. In the several days prior to 4th July, Headquarters, Southern Command, was at pains to point out to all news media in the Melbourne area including the ABC that reports of this type were quite untrue. Because of this fact it is regrettable that a report was released by the ABC in the programme This Day Tonight’ stating that two companies of infantry were being held in reserve close to the United States Consulate in Commercial Road, Prahran, to assist the police should their assistance be required. Immediately the statement was made by the ABC, Headquarters, Southern Command contacted the television station concerned and a retraction of the statement was made.

Mr Irwin:

– But the damage had been done.

Mr LYNCH:

– Yes, the damage had been done. A denial of the claim was later carried by most Melbourne news media. I express concern that a national television network should release material of this kind without endeavouring to authenticate it with responsible authorities. A similar and equally unfounded report has recently been circulated that troops have been on stand-by in case they are required in connection with the current industrial unrest involving employees of the State Electricity Commission. That report is also completely unfounded. Because the Australian Army is the principal government agency applying policy in relation to Vietnam and national service it is under continual attack in this country from the lunatic fringe of the dissident and the disaffected. Undoubtedly the two instances of unfounded rumours to which I have referred are but part of this attack and it is well that the House should be aware of the situation.

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QUESTION

HEALTH

Mr BARNARD:
BASS, TASMANIA

– I direct my question to the Minister for Health. Did he say on 3rd August that the Australian Labor Party’s alternative national health programme ‘is completely dependent on the co-operation of the medical profession in using a fixed schedule of fees’? Did the Nimmo Committee conclude that the element of certainty as to costs to be met by insurance is vital to any system of health insurance? Is it not then a fact that the present system of voluntary health insurance and the alternative programme put forward by the Australian Labor Party are equally dependent upon agreements being reached with the medical profession on the stabilisation of fees?

Dr FORBES:
LP

– The answer to the honourable gentleman is no. The Nimmo Committee quite specifically rejected the proposal of a fixed schedule of fees for the very good reason - amongst others I would imagine - that it is well known that the medical profession does not regard such a scheme as desirable and, in the Australian context, would not agree to operate a fixed schedule of fees. The Nimmo Committee did put forward a proposal related to a most common fee which is a very different matter from imposing a fixed schedule of fees on the medical profession which, as I understand it, is what is contained in the proposal of the Australian Labor Party.

But the Australian Labor Party’s proposal goes further than that. It is not only utterly dependent on doctors agreeing to a fixed schedule of fees, negotiated somehow or other - I would imagine, imposed on them - but also utterly dependent for its workability on doctors being prepared to send their bills direct to the health insurance funds and to accept 85% of the schedule of fees, which they probably have had imposed on them anyway. The only point that I make in answer to the honourable gentleman’s question is that the Nimmo Committee’s recommendations and the Australian Labor Party’s proposal are utterly different.

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QUESTION

MR MAXWELL NEWTON

Mr ST JOHN:
WARRINGAH, NEW SOUTH WALES

– My question is directed to the Attorney-General. It relates to the search ordered by Cabinet and conducted by Commonwealth Police, acting under what we now know to be invalid warrants, of the premises owned and occupied by Mr and Mrs Maxwell Newton on 23rd May of this year. Is it a fact, as has been alleged, that some of the documents seized and some of the information obtained by the Commonwealth Police had no relation to the possible commission of any offence of the kind described in the warrants? Have any of those documents or has any of that information been conveyed to the Prime Minister or any other Minister? Finally, I ask the Attorney-General: What does the Government propose to do to make amends to Mr and Mrs Newton for the unlawful invasion of the privacy of their home and the illegal seizure of their private papers?

Mr BOWEN:
Attorney-General · PARRAMATTA, NEW SOUTH WALES · LP

– Dealing first with the form of warrants, I think perhaps I should point out that no form of warrant is prescribed under section 10 of the Crimes Act. That section, under which warrants are issued, is perfectly general in its terms. The particular form used is one which has been in use since 1943 when Dr Evatt was Attorney-General. It is true that Mr Justice Fox has held that the form of the warrants was bad. Now, we are considering at the moment whether we should seek a further clarification of the law on this subject in a higher place. But, accepting for the moment the decision of His Honour, I think that I should put some things into perspective.

There is no question, on His Honour’s findings, that the evidence which the police took to the Justice of the Peace to ask for a warrant was sufficient to entitle them to a search warrant. There is no question that they could have got a warrant in the proper form. If they had, what they in fact did might have been done under a warrant in proper form. Nevertheless, the warrant issued was incorrect in two respects according to Mr Justice Fox; , firstly because it did not contain a correct recital of the fact that the Justice of the Peace was satisfied by the evidence that he had heard that there were reasonable grounds for suspecting there was in any house or place anything as to which there were reasonable grounds for believing that it would afford evidence of an offence, but in fact set out that the Justice of the Peace had been informed by an officer of the police force that there were reasonable grounds for suspecting that an offence had been committed.

But, more importantly, His Honour held that the warrant was general in its terms and did not specify that the search should be for documents relating to a specified offence, for instance the offence of the disclosure of the Paris cable about which evidence had been given before the Justice of the Peace. This was the main objection on which the warrants were held invalid, but I should point out that the authorities show that even if the warrants had been so restricted, had the search disclosed documents which might have revealed other offences the officers would have been permitted to take those other documents. There would therefore have been that degree of correspondence in the conduct of the search. Therefore I think it is quite premature to be asking me what amends should be made. No doubt the law provides adequate remedies if anyone has been injured and I do not think I should be asked to answer questions along these lines.

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QUESTION

MEDICAL CHARGES

Mr WHITLAM:

– I direct a question to the Minister for Health supplementary to that asked him by the Deputy Leader of the Opposition. I ask the honourable gentleman whether he recalls the Nimmo Committee reporting that:

For many years ‘fee schedules’ have been provided by the medical profession in Canada and have been adhered to by almost all doctors in their charges to patients … we know of no valid reason why the medical profession here should refuse to follow the example of their opposite numbers in Canada, with the same beneficial results.

Has the President of the New South Wales Branch of the Australian Medical Association attributed the Association’s rejection of the fee schedule to the Minister’s own administration of the pensioner medical service? Can the Minister give any other valid reason for the Australian Medical Association’s rejection of a fee schedule?

Dr FORBES:
LP

– I answered the question of the Deputy Leader of the Opposition as he asked it. The Deputy Leader of the Opposition attempted to suggest that the Nimmo Committee proposed a schedule of fees. It is, of course, the policy of the Australian Labor Party to impose a schedule of fees on the medical profession. I said that the Committee did not propose a schedule of fees but a system based on a most common fee approach, which is a very different matter and is regarded as such by the medical profession. That was a factual answer. If the honourable gentleman wants to know the attitude of the Australian Medical Association to these things and its reason for having that attitude I suggest he ask the Australian Medical Association.

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QUESTION

VIETNAM: TRANSPORT OF MAIL

Mr LUCOCK:
LYNE, NEW SOUTH WALES

– I direct a question to the Minister for the Army. Is it a fact that there has been a change in the transport of mail to our troops in Vietnam? Has this change brought about a delay in the delivery time?

Mr LYNCH:
LP

– The expeditious processing of mail to and from Vietnam is, of course, a vital factor in the morale of our troops, and every effort is made to ensure that there is no avoidable delay. There has recently been a change in the carriage of first class mail. Previously first class mail was carried to Vietnam by Pan-American Airways from Sydney to Honolulu on 7 days a week and then from Honolulu to Saigon on 6 days a week. This has now been changed and the mail will be carried by R. and R. aircraft. The change has been made possible because space which was not previously available is now available on R. and R. aircraft. Whilst it is too early to assess in detail the result of the change, officers of my Department expect that the processing of mail will be no less favourable than it was under the previous arrangement. The time for delivery of first class mail from the post box to the soldier is between 3 and 6 days, depending on where the mail is posted. This mail, of course, is carried free of charge. There has been no change in the carriage of second class mail, which is carried by RAAF courier or charter aircraft at parcel post rates. The delivery time from post box to soldier is about 14 days. There has been no change in the arrangement for the carriage of mail between Saigon and Nui Dat.

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QUESTION

LEPROSY

Mr COLLARD:
KALGOORLIE, WESTERN AUSTRALIA

– I address my question to the Minister for Health. Is it correct that soldiers in Vietnam are exposed to a very high incidence of the dreaded disease of leprosy? Is it also correct that some troops have returned to their homeland with a leprosy infection? Is it correct that, due to the long incubation period, it may be 3 years before an infected person actually becomes aware of his insensitive areas? If this is so, what are the appropriate authorities doing to protect our boys against the disease while they are in Vietnam? Are they all tested immediately before or upon arrival back in Australia? What arrangements are made for tests during the incubation period of 3 years after they return from Vietnam? Are all American troops from Vietnam tested before they are allowed into Australia on leave or for other purposes?

Dr FORBES:
LP

– Nothing on this matter has been brought to my attention. I will make inquiries and let the honourable gentleman know.

page 8

QUESTION

ACTIVITIES OF RUSSIAN NAVY

Mr CHANEY:
PERTH, WESTERN AUSTRALIA

– My question is directed to the Minister for External Affairs. He will no doubt be aware of recent reports of increased Russian naval activity in the Indian Ocean area and what is reported to be a growth of Russian diplomatic interest in the South East Asian region. I ask him to say what significance the Government attaches to these activities.

Mr FREETH:
Minister for External Affairs · FORREST, WESTERN AUSTRALIA · LP

– Naturally the Government watches with some concern the trends and the strategic developments in the Indian Ocean area. There have been recent reports of increased Soviet naval activity there, but I think it is proper to put this on a factual basis. There have in fact been three separate visits by Russian naval flotillas to the Indian Ocean since early 1968. On no occasion did the flotilla consist of more than twelve ships in all, with seven fighting ships. The composition was about two cruisers, a couple of destroyers, some submarines and the balance would be supply vessels and tankers. These ships operated mainly from the Soviet base atVladivostok. Up to the present, although there has been an increasing Russian interest it poses no threat to any Australian interest.

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QUESTION

HEALTH BENEFIT ORGANISATION

Dr EVERINGHAM:
CAPRICORNIA, QUEENSLAND

– I direct my question to the Minister for Health. Has he noted the Nimmo Committee’s conclusion that ‘an unduly high proportion of the contributions received by some organisations is absorbed in operating expenses’? Is it his responsibility to see that the amounts appropriated for operating expenses by registered health benefit organisations do not exceed a prescribed percentage of their contribution income? Has his Department restrained certain of the more economically efficient organisations from increasing benefits out of proportion to those offered by smaller and less efficient organisations? What action has his Department taken or initiated to remedy these anomalies?

Dr FORBES:
LP

– I am aware of those comments and recommendations, as well as the other recommendations of the Nimmo Committee. They are under review by the Government at the present time. The Government has not yet made a final decision on them, but they are being examined.

In view of the statement he made, I remind the honourable gentleman that the Nimmo Committee pointed out that on the whole and for various reasons it was not the large funds which were the most economic but the small ones, particularly the small closed funds. The suggestion which is being assiduously fed out by the Australian Labor Party that there would be economies of operation if all health insurance contributors were pushed into one great monolithic fund was completely refuted in the report of the Nimmo Committee.

page 8

QUESTION

SNOWY MOUNTAINS AUTHORITY

Mr MUNRO:
EDEN-MONARO, NEW SOUTH WALES

– I ask the Minister for National Development whether it is true that it was expected that in thelast sessional period the Government would introduce legislation for the formation of a consulting engineering corporation from the staff of the Snowy Mountains Hydro-electric Authority. Is it also true that the Minister-

Mr SPEAKER:

– Order! The honourable member may not ask for information on Government policy, although he may ask for an explanation of it. Nor may he ask whether a matter is true. If the honourable member rephrases his question he will be in order.

Mr MUNRO:

– Is it a fact that the Minister has reaffirmed the determination of the Government to establish such a corporation? In view of the great urgency of this matter and in order to avoid further diminution of the staff from which the members of the corporation will be drawn, will the Minister now inform the House when this legislation is expected to come before the Parliament?

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

– The Government has reaffirmed that it will set up a consulting organisation with selected elements of the Snowy Mountains Hydro-electric Authority. It is the intention of the Government to bring the necessary legislation before the House during this session.

page 8

QUESTION

JINDIVIK AIRCRAFT

Mr McIVOR:
GELLIBRAND, VICTORIA

– I direct a question to the Minister for Defence. Is the Jindivik remote control aircraft which was invented and designed by an Australian in Australia being manufactured in England? What is the reason for this procedure while the

Government Aircraft Factory at Fishermen’s Bend, in Victoria, has no programme of continuity in aircraft construction? In order that continuity can be established at that factory, will the Minister take action to have Jindivik aircraft constructed there?

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

– I am completely unaware of the basis of the honourable gentleman’s question. I have no knowledge whatsoever of Jindivik aircraft being manufactured in England. Australia has sold a number of Jindivik aircraft in Europe, both to Sweden and the United Kingdom. One would assume that repairs are made in England to aircraft flown by the United Kingdom Government. But I assure the honourable member that I have no knowledge whatsoever of this aircraft being built in England and I would be extremely surprised if it were. However, in view of the certainty in the tone of his voice I will make some inquiries.

page 9

QUESTION

NATIONAL SERVICE

Mr CLEAVER:
SWAN, WESTERN AUSTRALIA

– My question, which is directed to the Minister for Labour and National Service, is based upon reference in a recent statement by him to 44% of registrants for national service being found medically below the standard for Army service. Will the Minister expand on this point? Does the Government consider this to be a disturbing trend in the national fitness of this age group? Will the Minister review the situation with his colleague, the Minister for Health, with a view to the National Fitness Council engaging in a programme to reduce this percentage of rejections?

Mr BURY:
Minister for Labour and National Service · WENTWORTH, NEW SOUTH WALES · LP

– The standards which are applied by my Department are those fixed by the Army and other defence authorities. The same standard has to be met by national servicemen as is met by Regular Army recruits and those wishing to join the Citizen Military Forces. It is true that at first sight the rejections appear to be high. But what, in most cases, would appear to be a perfectly fit man or even an athletic man for ordinary purposes would not necessarily be fit for service in the jungles of South East Asia. For instance, acne, tinea and quite a number of other diseases, which normally would have little effect on Australians living in a capital city, up there would cause considerable inconvenience to and inefficiency in people if they were called upon to serve in the Army.

It is our intention to continue to apply precisely the same standards as those laid down by the Army. It is not for my Department or me to apply standards. But they are the necessary minimum service standards. I have no reason to think that they are not perfectly suitable for the purpose for which they are designed.

page 9

QUESTION

VIETNAM

Dr J F Cairns:
YARRA, VICTORIA · ALP

– I ask the Prime Minister: Does he agree that Australian Military Forces will not long remain in Vietnam and that control and administration of their areas must soon be taken over by others? Would he agree that this makes it unjustifiable to risk more Australian casualties and certainly even one more Australian life in Vietnam? In order to ensure that no more Australian lives are lost unnecessarily, will he soon announce a programme for the complete withdrawal of Australian forces from Vietnam?

Mr GORTON:
Prime Minister · HIGGINS, VICTORIA · LP

– I do not think that anybody could say with the kind of certainty which the honourable member for Yarra said that the actions in Vietnam of allied troops would cease at some early date. Indeed, I believe that the President of the United States has made it clear that while he wishes to disengage, that disengagement is to be dependent upon what happens at the Paris peace talks and upon the reaction of the Vietcong and the North Vietnamese to the strong moves towards peace which have been made by the United States, so far without being reciprocated by those who are engaging in attacking South Vietnam.

In these circumstances, I do not believe that there is any long term precise or firm programme for the disengagement of United States troops, but that that will depend upon circumstances in the future. For ourselves, the situation, Mr Speaker, remains as I have presented it to this House before. The forces provided by the United States for what we believe to be the proper protection of a country under attack - South Vietnam - have been greatly increased since our contingent of ground troops was built up to its present size. There has been a withdrawal of some United States troops, but I believe that unless and until there is continued withdrawal of United States troops and a programme for that which depends upon the working out of these other conditions, then it is premature to talk in terms of Australian troops. What will be necessary, of course, is that if - and this is a big ‘if - there is to be on the part of the United States a specific, definite and drawn out plan for withdrawal, then Australian troops would need to be phased into that plan. That is all I have to say to the honourable member at the moment.

VISIT by AMERICAN ASTRONAUTS

Mr ENGLAND:
CALARE, NEW SOUTH WALES

– I address a question to the Prime Minister. Has any invitation been extended to or any arrangement made for the successful astronauts - Armstrong, Aldrin and Collins - to visit this country at a later date? If so, will an opportunity be given to them, should they require to take it, to visit the radio telescope at Parkes, an instrument which played such a critical part in telecommunications in this completely outstanding event?

Mr GORTON:

– I have it in my mind - but I cannot be quite sure and definite while talking to the House at this stage - that it is quite likely that the astronauts will be visiting Australia. What they would see when they came to Australia would, I have no doubt, cover those installations, such as the Parkes telescope and other tracking installations, which would have been connected with this great adventure of man going to the moon. But that is contingent upon my being accurate in my recollection that this visit may take place.

page 10

QUESTION

RESERVE BANK

Mr DUTHIE:
WILMOT, TASMANIA

– I ask a question of the Treasurer. Is the decision by the Reserve Bank to reduce liquidity and to increase interest rates an all embracing decision? In other words, does it apply to every sector of the economy? If it does, will the Treasurer exempt from these recent restrictive moves by the Reserve Bank the whole segement of primary industry, which is already heavily mortgaged, which is quite unable to meet further high interest rates for its carry-on finance and which faces lower incomes from overseas sales in the next 12 months?

Mr MCMAHON:
Treasurer · LOWE, NEW SOUTH WALES · LP

– 1 will be referring to this matter in the Budget speech tonight, but I think I could tell the honourable gentleman that it would be extremely difficult to exclude particular sections of the economy from Reserve Bank decisions.

page 10

QUESTION

CIVIL AVIATION

Mr DOBIE:
HUGHES, NEW SOUTH WALES

– Has the attention of the Minister for Civil Aviation been drawn to strong criticisms that have been levelled by the Executive Secretary of the Australian Federation of Travel Agents against alleged non-competitive activities and the overrationalisation of services provided by Australia’s two major domestic airlines? By way of support, I remind the Minister that on two recent occasions I have witnessed overbooking of seats by Trans-Australia Airlines in Sydney, to the great inconvenience of certain people. This inconvenience is aggravated by the parallel scheduling by both major airlines out of Sydney airport. In view of the many criticisms that are being expressed about this parallel scheduling and the overbooking of flights, has the Minister considered instituting a system wherein the over-booking of airline seats by Australian airlines will be subject to a type of penalty similar to that in force in the United States of America, where heavy fines are imposed upon domestic airlines which are guilty of over-booking of seats?

Mr SWARTZ:
Minister for Civil Aviation · DARLING DOWNS, QUEENSLAND · LP

– I have not seen the report to which the honourable gentleman refers, but in relation to the comment about our two airline system which applies to the major trunk routes in Australia I point out that it is rather unusual to have major criticism of the services which are provided, because constantly I receive requests from other countries for information regarding the system which we operate in Australia. In fact, on several occasions I have had requests for people to visit Australia in order to study our system with a view to trying to implement it in their own country because they feel that it would be an improvement.

But having said that, of course, it is realised that no system can be perfect, and no doubt there are some faults associated with the present system. The question of parallel timetables is one matter. Honourable members will recall that about 2 years ago I set up a special committee to investigate this matter. As a result of the committee’s report, some improvements were made. We hope that as time goes on, with the introduction of new and additional aircraft, the system will be improved in that direction. The question of over-bookings has not been drawn definitely to my attention, except on casual occasions in correspondence, but I will certainly arrange for some investigation to be made. I may say that our system of bookings in Australia is in keeping with the best standards in the world. Most of this work now has been changed over to computers. Possibly some problems are arising in the changeover. I will investigate the matter to see whether any action should be taken, and if any is taken I will let the honourable gentleman know.

page 11

QUESTION

NATIONAL SERVICE

Mr BARNARD:

– I address a question to the Attorney-General. Were representations made to him this morning for the release of john Zarb? If so, what is his decision?

Mr BOWEN:
LP

– I did, by arrangement, see Mr Galbally of Victoria who handed to me a petition for the release of John Zarb supported by other documents and affidavits and some medical evidence. This morning I also received from the honourable member for Maribyrnong representations for the remission of Zarb’s sentence, with a letter from the two parents and also some supporting material. The decision on a matter of this type rests, of course, with the GovernorGeneral on the advice of the Minister. I am having inquiries made into the matters that have been put before me. The matter will be dealt with promptly and, in due course, according to what the decision is, advice will be given to His Excellency.

page 11

QUESTION

SEARCH WARRANTS

Mr MUNRO:

– I direct a question to the Attorney-General. In view of the proceedings following the issuing of warrants on 23rd May 1969 for police to enter the premises at 53 Kent Street, Deakin, owned by Mr Maxwell Newton, and 55 Kent Street, Deakin, owned by Mrs Newton, the third warrant of 5th June relating to the Canberra Branch of the Bank of New South Wales, and the judgment of Mr Justice Fox in the

Supreme Court of the Australian Capital Territory in case No. 680 of 1969, can the Attorney-General advise the House whether any action will be taken to ensure that the issuing of any future search warrants is subjected to closer examination than at present by ensuring that they are issued by magistrates, rather than justices of the peace, or by some other similar means?

Mr BOWEN:
LP

– At the present time section 10 of the Crimes Act, which authorises the issue of warrants, gives the power to a justice of the peace. This has been so for a very long time, the theory being that there is the interposition of someone who is independent of the police or any authority seeking the warrant. Whether this should be placed in the hands of a magistrate rather than a justice of the peace is, I think, a question that ought tq be given some consideration. However, I think we should await the consideration of the present case and, following a final determination one way or the other, give consideration to the matter that has been raised.

page 11

QUESTION

TAXATION

Mr SWARTZ:
Minister for Civil Aviation and Minister Assisting the Treasurer · Darling Downs · LP

– I present the following paper:

Taxation Statistics 1967-68 dated 1 August 1969 and the second supplement to the Forty- seventh Report of the Commissioner of Taxation.

I merve:

That the paper be printed.

Under normal circumstances this paper would have been presented to the Parliament along with and as a supplement to the forty-eighth report of the Commissioner of Taxation. However, because of the earlier availability of many crf the statistics which it contains, it has been found possible to present this volume in advance of the fortyeighth report. Accordingly, Taxation Statistics 1967-68 is presented as a second supplement to the forty-seventh report al the Commissioner of Taxation, which was presented to the Parliament in October last year. The forty-eighth report of the Commissioner of Taxation will be tabled in due course.

Question resolved in the affirmative.

page 12

QUESTION

NEWSPAPER REPORTS

Mr UREN:
Reid

– by leave- On 10th February 1963 an article appeared in the early editions of the ‘Sun-Herald’ which was withdrawn from the late editions. A report on this same matter did not appear in the early editions of the ‘Sunday Telegraph’ of the same date, but it appeared in the late editions of that publication. In the week following these publications I commenced legal action in the Supreme Court of New South Wales against John Fairfax and Sons Ltd, publishers of the Sun-Herald’. I also commenced action against Australian Consolidated Press Ltd, publishers of the ‘Sunday Telegraph’. In the first trial against both the ‘Sunday Telegraph’ and the ‘Sun-Herald’ I received substantial verdicts on all counts. In fact, I received a verdict in my favour on all counts in all three jury trials, with the exception of one count against Australian Consolidated Press Ltd. On that count a new trial was ordered, but it did not eventuate. A settlement was made out of court with John Fairfax and Sons Ltd several years ago. A public apology had earlier been published on the front page of the ‘Sun-Herald’. Australian Consolidated Press Ltd apologised in the ‘Sunday Telegraph* on 20th July 1969.

The case against Australian Consolidated Press Ltd had a long journey through the courts. First of all, the case was heard before a judge of the Supreme Court of New South Wales in reference to the declaration. An appeal was then heard before the Full Bench of the Supreme Court of New South Wales, following which the matter came before a jury of twelve in a trial which lasted for 13 days. An appeal against the verdict in this trial again went before the Full Bench of the Supreme Court of New South Wales. A further appeal was heard before the Full Bench of the High Court of Australia and then before the Privy Council in London. A second trial was granted and it lasted for 7 days. A further appeal was then made to the Full Bench of the Supreme Court of New South Wales and the hearing lasted for a week. On one count the Supreme Court of New South Wales awarded a third trial, a jury trial, which did not eventuate. The matter has now been settled out of court with Australian Consolidated Press Ltd.

This has been the first opportunity for me to raise this matter in the House. For the past 64 years it has been sub judice. The inspiration for the libel which was published arose from a speech made in the debate on the motion for the adjournment of this House on 29th November 1962 by the honourable member for Ballaarat (Mr Erwin). At that time he was a member of the Government’s back bench. There were interesting aspects of the honourable member’s contribution. Firstly, he read from a prepared speech, which at that time was contrary to the Standing Orders of the House. A point of order was raised by Mr Reynolds who was then honourable member for Barton. The speech of the honourable member for Ballaarat lasted for only 5 minutes, notwithstanding that he was entitled to speak for 10 minutes. His charges were that I was inspired by Mr Ivan Skripov, a first secretary of the Soviet Embassy. The honourable member’s speech is recorded at page 2820 of Hansard of 29th November 1962. In part he said:

I ask why certain members of the start of the Russian Embassy, particularly one Mr Ivan Skripov, a first secretary of the Embassy of the Union of Soviet Socialist Republics, has been a regular visitor to this House and has been cultivating the friendship of certain members of the Australian Labor Party, in particular the honourable member for Reid (Mr Uren)-

The honourable member also referred to two other honourable members and continued:

Have these members been inspired by this Soviet diplomat to ask questions on a number of sensitive foreign policy issues, and have they been briefed for foreign policy debates.

The honourable member also said: the visit to this House yesterday by Mr Skripov . . . and having in mind also the sinister remarks in the debate last night, on the motion for the adjournment of the House, by the honourable members for Parkes and Reid concerning the proposed American base on the north-west coast of Australia, I suggest that we again have evidence that these honourable members are being directly inspired by Soviet Embassy officials.

I rose to speak in the debate - it was a Thursday evening - but as I had spoken the night before on the motion to adjourn the House I was unable to get the call. At the conclusion of the following week the House adjourned for the Christmas recess. For some weeks prior to the termination of the sittings the House had been sitting, with the exception of Tuesday evening, into the early hours of the morning, in fact, the sitting of Wednesday, 5th December, extended until later than 3 a.m. on Thursday, at which time the honourable member for Banks (Mr Costa) was gagged when he sought to speak on the motion to adjourn the House. The sitting of Thursday, 6th December continued until later than 3 a.m. on Friday, 7th December. The only honourable members to participate in the valedictory were Sir Robert Menzies, who was Prime Minister, the present Leader of the Opposition (Mr Whitlam) and that old warrior Mr E. J. Ward - the only back bench member to speak. We all know his attitude towards valedictory speeches. At this time articles had already appeared in the Brisbane Telegraph* and the ‘Daily Mirror’ debunking the speech of the honourable member for Ballaarat and condemning McCarthyism. I regret that at the time I did not use the forms of the House to make a personal explanation and to dissociate myself from the statements made by the honourable member for Ballaarat. I will not allow such an incident to occur again without employing the forms of the House to answer the statements made.

On 7th February 1963, before the Parliament reassembled, Skripov was pronounced persona non grata. Three days later the libellous article appeared in the ‘SunHerald’ and the ‘Sunday Telegraph’. In the first trial Australian Consolidated Press tendered a newspaper article in the Melbourne ‘Age’ in support of its plea that the libel had been ‘published in the course of or for the purpose of discussion of some subject of public interest the public discussion of which is for the public benefit’. This is a protection provided under section 17H of the New South Wales Defamation Act. The newspaper article was dated 16th July 1962. All honourable members know that Parliament is in recess at that time of the year. Although I read the Melbourne Age’ when Parliament is sitting, I do not generally see the newspaper when the Parliament is not sitting. The article was headed: ‘Soviet Activities Here Arouse Interest’. It was written by the Canberra correspondent of the ‘Age’, Mr John Bennetts, who is now employed by the Australian National University. An examination of the article discloses that it resembles the speech made by the honourable member for

Ballaarat in the House of Representatives on 29th November 1962. In fact, some paragraphs of the article and the speech are identical. The newspaper article of 16th July and the honourable member’s speech of 29th November had a similar style. It appeared as though Mr Bennett’s had written both items. It differed in that the newspaper article of 16th July 1962 mentioned only ‘a number of back-bench members of Federal Parliament*. The speech made on the adjournment by the honourable member for Ballaarat mentioned two honourable members as well as naming myself. Mr Bennetts was so prompt in having the names of all three honourable members published in the newspaper he represented that his paper, excluding one other, was the only morning newspaper on 30th November, outside of Canberra, that ran this smear article. Mr Bennetts published this smear under the protection of claiming that he was reporting what was happening in Parliament.

I have come to the conclusion that two things may have happened: Either the diligent, efficient honourable member for Ballaarat’ copied word for word some of Mr Bennett’s newspaper article and utilised the remainder of the newspaper article as the theme for his prepared speech on 29th November or Mr Bennetts wrote the speech for the honourable member for Ballaarat so that Mr Bennetts might smear certain honourable members under the protection of the claim that he was reporting the happenings of Federal Parliament. I cannot say which it is. I have no evidence to say that. I cannot say for certain what inspired the honourable member for Ballaarat to make such a speech. All I ask honourable members to do is to examine the articles that I have quoted. Then, honourable members may draw their own conclusions.

In regard to the allegations made by the honourable member for Ballaarat on the night of 29th November 1961, so that it may be recorded in Hansard, I say that these allegations were completely false. Neither Mr Skripov nor any other Russian diplomat has approached me to seek any information about any matter whatsoever. Any views expressed by me in regard to the then proposed North West Cape base were exclusively mine based, on my national outlook. I was inspired - or, should I say, prompted - to ask my first question on the proposed North West Cape base of the then Minister for Defence, Mr Athol Townley, on 16th March 1961 by what I read in the ‘Sydney Morning Herald’ of 28th February 1961. This is interesting. It is a little dumbfounding for the ‘Sydney Morning Herald’ that I sued the Fairfax organisation while my source of information on this matter was the ‘Sydney Morning Herald’.

The House went into recess. During that recess, I saw another newspaper article on this subject. Again, it was in the ‘Sydney Morning Herald’. When Parliament resumed, I asked a second question on this subject of Mr Townley on 15th August 1961. Again, my source of information was the ‘Sydney Morning Herald’ of 21st July 1961. If honourable members would like me to have these matters incorporated in Hansard, I have both articles here. Mr Speaker, I seek permission to have both of these articles incorporated in Hansard. I ask for leave to do so.

Mr SPEAKER:

– Is leave granted?

Mr Erwin:

– No.

Mr Whitlam:

– He can read them if you like.

Mr Erwin:

– No.

Mr SPEAKER:

– Leave is not granted.

Mr UREN:

– The next matter that I desire to mention is this: I asked questions of the then Minister for Defence and the then Prime Minister. The source of my information for those questions was the statement in the House of Representatives on 17th May 1962 by the then Prime Minister. If anybody wishes to check on the history of this article, he will see that the Prime Minister made a statement on 17th May, which was a Thursday morning. I had my name down for the Grievance Day debate. I made a few comments during that debate about the statement made by the Prime Minister. I followed up these questions again after the parliamentary recess and continued to agitate in regard to the questions that I raised because the replies that I received from the Prime Minister were particularly negative and because I felt that, as a member of Parliament, I had the right to seek this information.

To express my own personal view, I found my struggle in the courts a long lonely struggle.I found little justice in the law. My hopes and my beliefs in justice are in people. It is on people - the ordinary people - that we must rely for justice. That is why I will struggle to retain the jury system. I wish to thank my senior counsel, Clive Evatt, Q.C., for standing by me during these long years. I desire to thank the staff of Parliament House for they have helped me so much. I have learnt from my experience.

Mr ERWIN:
Minister for Air · Ballaarat · LP

– by leave - Mr Speaker, I wish to make a short reply. First of all, at no time during that session did the honourable member for Reid (Mr Uren) attempt to rise to defend himself in relation to the speech that I gave in the House in 1962. At no time did he attempt to defend himself. Secondly, the honourable member for Reid would not have had a leg to stand on if I had named another member of the Russian Embassy at the time, a Mr Gamazeishchikov, who was here repeatedly with Mr Skripov. If I had named Mr Gamazeishchikov, I would have been able to prove that Mr Gamazeishchikov had been in the electorate of the honourable member on a number of occasions.

Mr Charles Jones:
NEWCASTLE, VICTORIA · ALP

– What does that mean?

Mr ERWIN:

– It means that he was asking questions here in this House which were led off by the Russian Embassy. This is something that the honourable member for Reid cannot answer. I know it to be true. That is where I wish the matter to rest.

Mr Uren:

– Mr Speaker, the Minister for Air (Mr Erwin)-

Mr SPEAKER:

– Order! Does the honourable member for Reid claim to have been misrepresented?

Mr Uren:

– Yes, I do, Mr Speaker, on two aspects. The Minister for Air made the statement that a Russian newspaper man had been into my electorate on many occasions. This is false. He has been in my electorate on one occasion. That is true. The Minister said that I did not try to answer what he had said on that occasion. I did. I rose on the adjournment on the Thursday night, the 29th, after midnight - that sitting continued into the 30th - to reply. I could not get the call. If one looks at the bottom of page 2829 of Hansard of 29th November 1962, one will find that the gag was moved by Mr Downer, as he then was, and if one looks at the voting in the division that followed one will see that the honourable member for Ballaarat, who laid the charge, voted on one side and that I voted on the other side for the right to speak and to answer those allegations.

page 15

PAPUA AND NEW GUINEABOUGAINVILLE COPPER DEVELOPMENT

Ministerial Statement

Mr BARNES:
Minister for External Territories · McPherson · CP

– by leave - Mr Speaker, this statement is concerned with the recent incidents near Kieta, Bougainville, in the Territory of Papua and New Guinea, in connection with the provision of land for the Bougainville copper project. On 3 1st July a lease was issued to Bougainville Copper Pty Ltd under the Territory Mining Ordinance over 175 acres of land at Rorovana. On 1st August, surveyors commenced marking the boundary of this land. In view of reports that there might be violence 100 police were sent to the area in three groups. A group of approximately 20 women crowded around police guarding a concrete survey peg. The police did not use force and eventually the peg was removed and carried away by the women. Clearing and marking of the area continued on 2nd and 4th August without interference. On 5th August a bulldozer clearing scrub for the survey team was confronted by a group of approximately 65 men and women. There were approximately 70 police present. The officer in charge warned the people to disperse on at least two occasions. He then ordered a group of 15 police carrying shields and batons to move in front of the bulldozer and attempt to push the crowd away with their shields. There was a general melee and at this point the officer in charge decided to attempt to disperse the crowd with tear gas. The tear gas used is nontoxic. It was only partially effective. After further warnings police were ordered to use their batons about the legs of the natives and after a very short time the crowd dispersed. There were no injuries other than one man who appeared to have grazed his leg falling over a log. No-one was injured by the police. Minimum force was used.

The members of the Papua and New Guinea constabulary acquitted themselves with distinction in these incidents, behaving with the greatest restraint and discipline. Their actions were at all times fully in accordance with the fine traditions of this force. These are the facts of the incidents. I turn now to the situation behind them.

For many years there has been some knowledge of the mineral wealth at Bougainville Island but it was not until 1960 that an Administration geologist reported the possibility of a major low-grade copper deposit. Conzinc Riotinto of Australia Ltd began prospecting the area in 1964. In 1967 after more than 12 months of negotiation an agreement was signed between the company and the Administration. This agreement was tabled in the Commonwealth Parliament. It was debated in the Territory House of Assembly and a ratifying Ordinance was passed by the House. The House consisted of 54 elected and 10 official members. The House also amended the Territory mining legislation so as to provide that 5% of aU royalties for minerals should be paid to the owners of the land from which the minerals were taken. This was accepted by the Government.

In June of this year the Territory House of Assembly (now consisting of 84 elected and 10 official members) debated a comprehensive White Paper on the Bougainville project and again endorsed it. The motion passed by the House on this occasion described the project as ‘a major and essential development in the economic future of the Territory’.

In relation to the situation at Rorovana as well as at Arawa, the Administrator consulted the Administrator’s Executive Council, which has a majority of elected members of the House of Assembly. The Council gave unanimous support to the Administrator’s proposals for further direct consultation with the people, to be followed if unsuccessful by leasing under the Mining Ordinance or by compulsory acquisition under the Lands Ordinance, and endorsed the employment of police if necessary to ensure protection of those going about thenlawful business in the area. The Council also expressed an earnest wish that the Rorovana and Arawa villagers would sell their land to the Administration.

The Bougainville copper project offers gigantic benefits to the Territory as a whole. These benefits will include jobs for 2,500 New Guineans within the next 5 years, a township of 10,000 people, a $2m training programme for indigenous people during the period to 1973, revenue to the Administration of between $200m and $300m in the first 10 years of operation, and export income in excess of Si 00m per annum.

In addition, the Administration, on behalf of the people of the Territory, has the option of a 20% equity interest in the project. CRA has indicated that it may also provide opportunities for individual equity participation by the people of Bougainville. The project therefore offers a tremendous opportunity for the Territory to lift itself up out of the field of competition of low priced tropical products in international trade, and to make a giant stride towards economic self-reliance.

In view of its importance to the Territory and in view of the nature of the problems involved, the Government and the Administration approached this whole question with great and careful consideration of the problems extending over many months. Advice regarding particular aspects of the attitude of the local people from expert anthropologists and psychologists has been carefully examined and the whole matter has been the subject of the most careful study.

Certain difficulties were experienced in 1966 and 1967 in the actual area of mining operations at Panguna, where the open pit mine, the concentrate plant, the mine town and a location for stacking waste rock will be sited. The 10,000 acres of this land is covered by a special mining lease.

The people of Guava, Moroni and Dapera who occupy or own land in this lease were originally antagonistic to the project as are the coastal people of Rorovana and Arawa now. The problems were handled patiently and sympathetically. These inland people are now reconciled to the mining operation. They are receiving full compensation for loss of housing and gardens and there will also be annual cash payments for the loss of use of land and for royalties. In summary there are about 1,000 men, women and children involved and when the mine is fully in operation cash payments are expected to total approximately $100,000 per year. Not all the compensation for loss of houses and gardens, et cetera, has yet been determined by the mining warden but some fifty people in the village of Moroni have been awarded cash and kind compensation valued at approximately $40,000.

Other leases required for roads, disposal of tailings, sources of aggregate and limestone et cetera may total up to 40,000 acres. Much of this area will be swamp. It is not expected that village dwellings will be involved.

The incidents on 1st and 5th August that I have referred to above relate only to requirements for the port. The company had, however, proposed that the town be sited on the coast in an area of some 2,000 acres south of the site proposed for the port. This location would have deprived some 650 villagers of their houses, gardens and economic crops. To avoid this the Administration decided to locate the town at Arawa plantation of 998 acres and to supplement this area with some 640 acres of adjacent sparsely planted village land which contained no village houses.

The arrangements for land for the port and for the town that were decided upon were chosen so as to cause the least disturbance to the minimum number of native people. The land is uninhabited. No homes are lost. No villages are displaced. The people have other land. Full compensation will be paid. If need be, however, the Administration will also make other land available.

In providing land for the port or for the town associated with the copper project the Administration is acting first and foremost in the interests of the Territory. The Territory gets more out of the copper project than the company, does. The project will not be on full stream until about 1980. When that happens, however, the following points apply:

  1. 50% of the taxable income goes to the Territory Treasury;
  2. royalties are payable to the Territory Treasury in accordance with the Mining Ordinance scale;
  3. if the Administration’s option on 20% of the equity is taken up then one-fifth of the dividends paid or profits accumulated but not distributed will accrue to the Territory.

Quite apart from these financial considerations and the indirect tax benefits flowing from the huge payroll that will be financed by the project there are the jobs, training and development benefits I have already referred to. The people of Bougainville have known for years that the project would require substantial areas of land but until the detailed investigations were completed it was not possible to specify the particular areas. In March of this year the company applied for its special mining lease. This brought into operation major aspects of the Agreement, including the obligation by the Administration to provide land. For over 3 years the Administration has used all possible means to explain to the people of Bougainville the nature and implications of the mining project. The construction of Radio Kieta was expedited in 1967 to facilitate communications with the native people.

Since mid-1966 over forty Administration patrols have been made in the area affected by the mining project. A primary objective of these patrols has been to explain to the people the nature of the project and how it would affect them. In addition, individual officers have spent in the aggregate hundreds of days visiting villages and individual families for this same purpose. The Administrator himself visited Bougainville earlier this year and spoke to the people and talked over Radio Bougainville. Last month an Assistant Administrator led a special mission to the Island and held meetings in the villages most affected. This mission included indigenous ministerial members of the House of Assembly and all three Bougainville members of the House. Radio and news sheets have been used extensively and the elected members for Bougainville have been given every opportunity and encouragement to inform themselves and their people of the project and the consideration it had been given by the House of Assembly.

As an example of the detailed and painstaking effort on the part of the Administration to achieve communication with the local people I refer to the fact that the

Assistant District Commissioner of the area visited Rorovana four times in the past 4 months and the people of Rorovana themselves visited the District Headquarters at Kieta 12 times in the past 5 months for discussions. There have also been frequent discussions with the Councillors of the Rorovana Council and the Council President.

It appears that the opposition of the Rorovana people to the sale of their land to the Administration is not related to lack of information nor, indeed, to the amount of compensation offered to them. Some 175 acres of Rorovana land is required for the port area. The Rorovana people number some 450 and they have total land of approximately 1,600 acres. The loss of this 175 acres will not seriously affect their economic livelihood. They have been offered a good price and alternative productive land. There has never been any real indication that they would sell at any price. On the other hand, not all the native people are opposed. At the village of Lonsiro only a few miles from Rorovana, one native landholding family concluded arrangements with the Administration under which they were paid $5,600 for a 42-year lease of 49 acres of land.

The Administration’s position in relation to negotiations for land for such public purposes as ports, town sites, airfields and so on has to take account of the need for these public facilities throughout the Territory. The proposed port for which the Rorovana land is required will be for public and not just for company use. The legal authority for compulsory acquisition or lease of land exists in the Territory as in other countries to avoid the need for excessive payments out of the public purse, that is, to serve the interests of the public as a whole.

Compulsory acquisition is an essential power in all communities. It is used in Australia more freely than in the Territory. Individuals or small groups are not allowed to hold the whole community up. In the Territory as here the amount of compensation is in the last resort subject to law.

The Agreement between the Administration and CRA which the Commonwealth Government is backing is modern in its approach and enlightened in its ideas. There will be adequate return to the Territory Government in terms of taxes, royalties and dividends from the profits of the operation. There are those who would accept the merits of the Bougainville Copper Agreement but who would criticise the way in which the Government or the Administration had handled the matter. This is easily done. Nevertheless it ignores the tremendous difficulties of communication and of comprehension which have confronted the Administration in this matter. I have explained the painstaking nature of the Administration communication activity. There has been no effort spared. The basic difficulty has been that people of this area are living in one world and the problems of development and the requirements of development confront them with another world.

In the absence of skill and patience and moderation on the part of the Administration, especially its field officers, we could easily have had a much worse situation than that which confronts us. As it is we cannot expect easy solutions. We must understand that what happened at Rorovana and what may happen elsewhere reflect the problems of transition into a modern world and a modern society. These cannot be sidestepped by an Administration that must act in the interests of the Territory as a whole. The Government, however, is grateful to the officers of the Administration for the extent to which their efforts have so far contained the problem.

The Government makes no apology for the Agreement. It considers that the Agreement is a spectacular contribution to harnessing the interests of private capital and the skills of the large corporation to the development requirements of the Territory. Not many developing countries are fortunate enough to have the prospect of so large and so remunerative a development within their boundaries. In this, confidence plays a major part. The investment of $300m demands confidence. In this case the investors are showing their confidence not only in the Commonwealth Government but in the people of the Territory themselves because the mining project looks ahead to the time when the people will be running their own affairs. In this respect the projected investment is an act of imagination and confidence. There are many who seek to knock it but it has the backing of the Territory people through their House of Assembly. It will survive.

The Government considers the Administration’s actions are fully in accordance with the law. Action has been taken in Papua and New Guinea to test the law. The Government will welcome an authoritative and definitive judicial interpretation of the legal position.

Since 1964, the Government has made available to the Territory by way of grant in aid sums totalling $400m. The Government and the House of Assembly have last year jointly backed a 5-year $ 1,000m development programme for the Territory. The Bougainville project offers a unique opportunity for the Territory to make a dramatic advance towards these objectives of development. The attitude of a handful of people may attract our sympathy, and we may go to considerable lengths to resolve their problems. But in the last resort we cannot allow them to block this great prospect and . thus throw into doubt the policies on which the futures of more than 2 million people depend.

In the structure of ignorance, superstition and prejudice, persuasion and explanations are not easy but with other expatriate influences working in the opposite direction - some not without prestige in native eyes - difficulties become great. The present choice before the people of this Territory is whether to drift in a primitive and backward situation in close dependency on the generosity of the Australian taxpayer to provide a modicum towards health, education and the preservation of law and order and burdened by their ancient customs or whether to advance as a modern state financed substantially by its own resources.

These resources lie dormant and will continue that way under traditional attitudes. Developed they will provide the revenues for the hospitals, the schools, the better standard of life and most important a nation not only able to stand on its own feet economically but able to opt for a meaningful independence should this be desired. This progressive transition has been the way chosen by the people of the Territory; its achievement needs sympathy and understanding from us in Australia as well as our continuing support.

Mr Stewart:

– Does the Minister propose to move that the paper be noted?

Mr SPEAKER:

– No.

Mr Stewart:

– I ask for leave to make a statement on the same subject.

Mr SPEAKER:

– Is leave granted?

Mr McEwen:

– No.

Mr Stewart:

– The Minister for External Territories is shaking his head. He has pulled the wool over our eyes. He has squibbed a debate.

Mr SPEAKER:

– Order! The honourable member will resume his seat.

Mr Stewart:

– He has squibbed a debate.

Mr SPEAKER:

– Order! If the honourable member for Lang does not resume his seat I will name him.

Mr Stewart:

– I am sorry Mr Speaker, I did not hear you. The Minister has squibbed it.

Mr SPEAKER:

– Order! As I understand the position, the Leader of the House has granted leave for the honourable member to make a statement.

Mr Stewart:

– I apologise.

Mr SPEAKER:

– I think you should.

Mr McEwen:

– My understanding is that when leave is sought to make a statement one dissenting voice is sufficient to refuse leave. I loudly and clearly said no.

Mr SPEAKER:

– Order! In that case leave is not granted.

Mr Stewart:

– Then I withdraw my apology.

page 19

BILLS RETURNED FROM THE SENATE

The following Bills were returned from the Senate:

Without requests -

Customs Tariff Bill (No. 2) 1969.

Excise Tariff Bill (No. 2) 1969.

Appropriation Bill (No. 3) 1968-69.

Supply Bill (No. 1) 1969-70.

Meat Chicken Levy Bill 1969.

Australian Capital Territory Tax (Cheques) Bill 1969.

Australian Capital Territory Tax (Hire-Purchase Business) Bill 1969.

Australian Capital Territory Tax (Insurance Business) Bill 1969.

Australian Capital Territory Tax (Sales of Marketable Securities) Bill 1969.

Australian Capital Territory Tax (Purchases of Marketable Securities) Bill 1969.

Australian Capital Territory Stamp Duty Bill 1969.

Without amendment -

Appropriation Bill (No. 4) 1968-69.

Supply Bill (No. 2) 1969-70.

Chicken Meat Research Bill 1969.

Petroleum Search Subsidy Bill 1969.

Meat Chicken Levy Collection Bill 1969.

Judiciary Bill 1969.

Judges’ Remuneration Bill 1969.

Commonwealth Aid Roads Bill 1969.

Australian Capital Territory Taxation (Administration) Bill 1969.

States Grants (Home Care) Bill 1969.

States Grants (Paramedical Services) Bill 1969.

States Grants (Nursing Homes) Bill 1969.

South Australia Grant (Tailem Bend to Keith Pipeline) Bill 1969.

New South Wales Grant (Gwydir River Dam) Bill 1969.

Victoria Grant (King River Dam) Bill 1969.

Australian Coastal Shipping Commission Bill 1969.

States Grants (Special Financial Assistance) Bill 1969.

page 19

ASSENT TO BILLS

Assent to the following Bills reported:

Income Tax Assessment Bill 1969.

Pay-roll Tax Assessment Bill 1969.

Audit Bill 1969.

Broadcasting and Television Bill 1969.

Citizenship Bill 1969.

Independent Schools (Loans Guarantee) Bill 1969.

Income Tax (International Agreements) Bill 1969.

Decimal Currency Board (Abolition) Bill 1969.

Superannuation Bill (No. 2) 1969.

Appropriation Bill (No. 3) 1968-69.

Appropriation Bill (No. 4) 1968-69.

Supply Bill (No. 1) 1969-70.

Supply Bill (No. 2) 1969-70.

Broadcasting and Television Bill (No. 2) 1969.

Customs Tariff Bill (No. 2) 1969.

Excise Tariff Bill (No. 2) 1969.

States Grants (Paramedical Services) Bill 1969.

States Grants (Nursing Homes) Bill 1969.

South Australia Grant (Tailem Bend to Keith Pipeline) Bill 1969.

New South Wales Grant (Gwydir River Dam)

Bill 1969.

Victoria Grant (King River Dam) Bill 1969.

Australian Coastal Shipping Commission Bill 1969.

States Grants (Special Financial Assistance) Bill 1969.

Australian Capital Territory Taxation (Administration) Bill 1969.

Australian Capital Territory Tax (Cheques) Bill 1969.

Australian Capital Territory Tax (Hire-purchase Business) Bill 1969.

Australian Capital Territory Tax (Insurance Business) Bill 1969.

Australian Capital Territory Tax (Purchases of Marketable Securities) Bill 1969.

Australian Capital Territory Tax (Sales of Marketable Securities) Bill 1969.

Australian Capital Territory Stamp Duty Bill 1969.

States Grants (Home Care) Bill 1969.

Patents Bill 1969.

Chicken Meat Research Bill 1969.

Meat Chicken Levy Bill 1969.

Meat Chicken Levy Collection Bill 1969.

Petroleum Search Subsidy Bill 1969.

Judiciary Bill 1969.

Judges’ Remuneration Bill 1969.

Commonwealth Aid Roads Bill 1969.

page 20

TERRITORY OF PAPUA AND NEW GUINEA - SELF-GOVERNMENT

Mr SPEAKER:

– I desire to inform the House that I have received from the Speaker of the House of Assembly of the Territory of Papua and New Guinea a letter forwarding the text of a resolution agreed to by that House on 14th May 1969. The resolution is as follows:

  1. This House has noted the Resolution passed by the General Assembly of the United Nations on 18th December, 1968 that the Assembly:

    1. Reaffirms the inalienable right of the people of Papua and New Guinea to self-determination and . independence in accordance with General Assembly resolution 1514 (XV).
    2. Regrets the fact that the Administering power has not yet fully implemented the provisions of resolution 1514 (XV) and other relevant resolutions relating to Papua and the Trust Territory of New Guinea.
    3. Calls upon the administering power to implement fully resolution 1514 (XV) and, to this end, to take the following measures in particular:
    1. Fix an early date for selfdetermination and independence in accordance with the freely expressed wishes of the people of the Territories.

    2. Hold free elections under United Nations supervision on the basis of universal adult suffrage in order to transfer effective power to the representatives of the people of the Territories.

    3. Requests the administering power to report to the trusteeship council and the special committee on the situation with regard to the granting of independence to colonial countries and peoples on the action taken in this regard.
    4. Requests the trusteeship council and the special committee to continueto examine this question and to report thereon to the General Assembly at its twenty-fourth session, and also the more realistic Resolution sponsored by Liberia that the Assembly:
    5. Reaffirms the inalienable right of the people of Papua and the Trust Territory of New Guinea to selfdetermination and independence in accordance with General Assembly resolution 1514 (XV) and the trusteeship agreement of 13th December, 1946.
    6. Takes note of the report of the trusteeship council and recommendations contained in the report of the United Nations visiting mission to the Trust Territory of New Guinea (1968).
    7. Calls upon the administering power to take steps to transfer effective powers in the executive and legislative branches of Government to the elected representatives of the people.
    8. Requests the administering power to accelerate the indigenisation of (he Public Service and to give local personnel greater administrative responsibility in the Governmental structure.
    9. Decides that the United Nations should render all help to the people of Papua and the Trust Territory of New Guinea in their efforts freely to decide their own future.

  2. This House wishes to make it clear to the United Nations and interested panics that the elected members of this House are already elected in free elections on the basis of universal suffrage and that the Resolution passed by the General Assembly is thus already out-of-date and repeats and reaffirms the terms of the Resolution passed by this House on 2nd September, 1964:

That we the elected representatives of the people of Papua and New Guinea desire to convey to the Parliament of the Commonwealth of Australia, the Trusteeship Council and the General Assembly of the United Nations Organisation, the expressed wish of the people that they, the people, and they alone, be allowed to decide when the time is ripe for self-government in Papua and New Guinea, and the form that such government will take and the people’s further firm conviction that the road to self-government can best be travelled with one guide - and that guide the Administering Authority, and that undue pressure from without can lead only to that disruption, chaos and bloodshed which the people have observed with great alarm in certain newly independent countries.

  1. This House desires that the views explained in this Resolution be like the Resolution of 2nd September, 1964, conveyed to the

Parliament of the Commonwealth of Australia, the Trusteeship Council and the General Assembly of the United Nations.

I have arranged to have the full text of the letter circulated to all honourable members.

page 21

JOINT COMMITTEE ON FOREIGN AFFAIRS

Mr SPEAKER:

-I have received advice from the Prime Minister that he has appointed the honourable member for the Northern Territory (Mr Calder) to be a member of the Joint Committee on Foreign Affairs.

page 21

LIBRARY COMMITTEE

Motion (by Mr Erwin) - by leave - agreed to:

That the honourable member for Cowper (Mr Robinson) be appointed to fill the vacancy now existing on the Library Committee.

page 21

CITY SOUTH TELEPHONE EXCHANGE, SYDNEY, NEW SOUTH WALES

Report of Public Works Committee

Mr O’CONNOR:
Dalley

– In accordance with the provisions of the Public Works Committee Act 1913-1966, I present the report relating to the following proposed works:

City South Telephone Exchange, Sydney, New South Wales

I move:

That the report be printed.

Mr CHANEY:
Perth

– by leave- The honourable member for Dalley (Mr O’Connor), at the end of a very long and creditable career in this Parliament, has moved that this report be printed. The honourable member was elected to this Parliament in 1946, and in 1950 he took his place as a member of the Public Works Committee. He has served as a member of this Committee in eight Parliaments. Since 1962 he has served as Vice-Chairman in three Parliaments. This is the last act that he will perform as a member of the Committee. In a place such as this one becomes accustomed to buckets that fly; we have had a little bit of this in the short time that we have been sitting today. I place on record the appreciation of the members not only of the present Standing Committee on Public Works but all committees with which the honourable member for Dalley has been associated, of the work which he has done. It is rather refreshing to work on statutory committees where politics arc forgotten and people act in what they believe to be the best interests of a particular project or of the nation.

The honourable member for Dalley has been Vice-Chairman of this Committee for a period longer than that for which I have been a member of the Committee. In the short period in which I have been associated with the honourable member, I have never known him to adopt a party political attitude. He has always acted in the interests of the subject under discussion. He has attended 730 meetings of the Committee at which 135 references were looked at and reported upon to this House. I hope that when the constituents he has represented for so long and so ably reflect on what he has done as a member of this Parliament they will realise that he has devoted a tremendous amount of time to looking at all sorts of projects throughout Australia and that at all times he was a creditable member of the Committee. He is held in very high esteem not only by myself but also by other Liberal Party and Country Party members on the present Committee and on earlier committees with which he was associated.

Mr WHITLAM:
Leader of the Opposition · Werriwa

– by leave - My colleagues and I appreciate what has been said by the honourable member for Perth (Mr Chaney), who is the Chairman of the Public Works Committee, about our colleague the honourable member for Dalley (Mr O’Connor), who has been Vice-Chairman of that Committee for many years and a member of it since March, 1950. This is the last day upon which our colleague will appear in the Parliament because be is to join, for the second time, the Australian delegation to the United Nations General Assembly. The honourable member has had the rare experience for a parliamentarian of having his seat abolished twice in distributions - the seat of Martin in the distribution of 1954, and the present seat of Dalley in the distribution which the Parliament approved last year. Nine times the people have returned him to this place by enviably substantial majorities. He now succumbs not to the verdict of the people but to the recommendations of the distribution commissioners. He has been a member of this Parliament since 1946. He has been a member of the Public Works Committee since 19S0. The honourable member has held the office of returning officer for the Federal Parliamentary Labor Party for many years. He has given unstinting service and has earned unvarying praise in all his capacities. He has shown outstanding courage completely to surmount a disability. He has rendered excellent service to the people of his electorate which comprises an exceptionally large percentage of retired persons and migrants. These are the people who need the advice and the services of a member of Parliament In every sense he is loved by the people he represents. He has been a good citizen, a good committee member, a good parliamentarian and a fine colleague. We will miss him.

Ordered that the report be. printed.

page 22

TERRITORY OF PAPUA AND NEW GUINEA- LAND TENURE

Discussion of Matter of Public Importance

Mr SPEAKER:

-I have received a letter from the honourable member for Lang (Mr Stewart) proposing that a definite matter of public importance be submitted to the House for discussion, namely.

The urgent need, in view of the deterioration in relations between the Australian Administration and the people of .the Territory of Papua and New Guinea arising out of the methods used to resume land on Bougainville Island and to enforce that resumption, to appoint a Joint Select Committee of the Australian Parliament to inquire into and report upon the most appropriate system of tenure, registration, leasing and resumption of land in the Territory.

I call upon those members who approve of the proposed discussion to rise in their places. (More than the number of members required by the Standing Orders having risen in their places)

Suspension of Standing Orders

Motion (by Mr Stewart) - by leave - agreed to:

That so much of the Standing Orders be suspended as would prevent the discussion on the matter of public importance being interrupted and resumed at a later hour this day.

Mr STEWART:
Lang

- Mr Speaker, on behalf of the Opposition, the people of the Territory of Papua and New Guinea and the people of Australia, I have the grave responsibility of proposing that the following matter of vital public importance be discussed:

The urgent need, in view of the deterioration in relations between the Australian Administration and the people of the Territory of Papua and New Guinea arising out of the methods used to resume land on Bougainville Island and to enforce that resumption, to appoint a Joint Select Committee of the Australian Parliament to inquire into and report upon the most appropriate system of tenure, registration, leasing and resumption of land in the Territory.

The Opposition is compelled to take this action in an earnest endeavour to save the reputation of Australia in the eyes of the world, but more particularly, in the hearts and minds of the 2t million indigenous people of the Territory of. Papua and New Guinea. The happenings on Bougainville Island in the past few weeks are the cause of our concern. Never did we think that any Australian government or Australian administration would allow its judgment, its tolerance, its responsibility, its understanding, its patience and its reputation to be so easily shattered by acts that could have the effect of turning against us the people over whom we have been appointed trustees.

A continuation of the course being followed on Bougainville Island will smash all the good work Australia has done in the Territory since the end of the Second World War. The Opposition believes that Australia enjoyed the understanding and friendship of the people of the Territory and that our relations in the future would have continued on a harmonious plane with the eventual self-government and independence of Papua and New Guinea. But the actions on Bougainville Island, with the compulsory acquisition of land from primitive people and the enforcement by force of that resumption has done Australia great harm. It may be many years before the total cost is known. It could easily be that Bougainville Copper Pty Ltd, the company the Administration set out to please, will be the first to feel the effects of our loss of prestige and trust. The blame for the whole deplorable incident must be firstly the responsibility of the Minister for External Territories (Mr Barnes), secondly, Cabinet and, thirdly, every member of the Government parties. Not one of them escapes - it was the inherent Liberal and Country Party philosophy to place private profits before people which allowed the situation to develop.

Very few Australians would disagree with the words of Mr A. P. J. Newman, M.H.A., the Acting Assistant Administrator (Economic Affairs) who, speaking in the House of Assembly at Port Moresby on 16th June 1969, described the Boungainville project as: ‘an event of unprecedented economic and social significance in the history of the Territory’. But as few would agree with his further statement that The Administration intends to fulfil its obligations under its agreement with the company and take all steps necessary to bring this great national asset into production’ if ‘all steps necessary’ means the trampling on years of land traditions of the native people and the use of force to fulfil obligations which are not understood by the same people - obligations which were entered into by the Administration, after little, if any, consultation with the native land owners.

On page 17 of the speech which Mr Newman delivered in the House of Assembly on 16th June to give members the background to the project not one word is said of any negotiations with the land owners. On page 3 of his speech, Mr Newman said:

After much discussion between the Company, the Administration and the Department of External Territories, an Agreement was signed on 6th June 1967 between the Company and the Administration. The Agreement sets out the various things that the Company and the Administration would guarantee to each other.

A few minutes ago the Minister for External Territories delivered a thirteen-page statement in the House. His speech lasted for about 22 minutes. He also gave to the members of this House some of the background to the negotiations on the Bougainvill copper project and also some of the details of the happenings earlier this month. The Minister said:

Conzinc Riotinto of Australia Ltd began prospecting the area in 1964. In 1967 after more than 12 months of negotiation an agreement was signed between the company and the Administration. This agreement was tabled in the Commonwealth Parliament. It was debated in the Territory House of Assembly and a ratifying ordinance was passed by the House.

The Minister then gave some further details of what has transpired in the House of Assembly over the Bougainville Administration agreement. Before quoting further from this statement, I remind honourable members that the agreement between

Bougainville Copper Pty Ltd and the Administration was signed on 6th June 1967. I also remind them that Conzinc Riotinto had been prospecting on Bougainville Island since 1964 and that long consultations had taken place between the company, the Administration and the Minister for External Territories. In his speech which lasted almost 25 minutes and which finished at about 2 minutes past 5, the Minister said: ‘Since mid-1966 over forty Administration patrols have been made in the area affected by the mining project.’ In 1964 Conzinc Riotinto was in the area. It was mid-1966 before you bothered to tell those people, something like-

Dr Mackay:

– -Tell them what?

Mr STEWART:

– Tell those people that that land was likely to be required or was likely to be resumed from them.

Mr Barnes:

– It was indefinite. A decision has not been taken yet.

Mr STEWART:

– Who has not taken a decision? You have made definite statements. Your representative in the House of Assembly in Port Moresby has made definite statements. Both of you fall down by virtue of the fact that you have known since 1964. You have had negotiations with the company over a 12 months period. It was not until mid-1966 that you bothered to send anybody at all into the area in order to try to tell those people the position. There are approximately 20 different languages spoken in the north of Bougainville, and there are approximately 50 different languages spoken in the south of Bougainville.

Mr Barnes:

– You should stay on mining and its prospects a bit more.

Mr STEWART:

– What the Opposition and I are worried about is people, not mining. You have been a farmer all your life.

Mr Barnes:

– And a miner.

Mr STEWART:

– And a miner. If the Queensland Government came along to you and said: ‘We are resuming your land’, you would be the first to cry. But because these people are uneducated, because they speak a number of different languages and have a diversity of cultures, and because they speak perhaps only pidgin English and their own tribal language, you have decided to ride roughshod over the top of them. This is the point which the Opposition makes and which every Christian citizen in Australia and every newspaper commentator, radio commentator and newspaper editorial is making. I know what the honourable member for Evans (Dr Mackay) will say later. He will refer to all the negotiations that have been taking place. I only wish that when you came into this Parliament you had retained some of the principles that you had while you were outside it.

Mr DEPUTY SPEAKER (Mr Lucock)I point out to the honourable member for Lang that he is using the word ‘you’, but he is addressing the Chair. On three occasions he has said: “You have done this and you have done that’ I point out to the honourable member that the Chair is not participating in the debate.

Mr STEWART:

– I apologise for my transgression. The only reference which I can find in any official documents that I have read to consultations between the Administration and the people is in the 1968 report of the United Nations Visiting Mission to the Territory. I correct that statement because I now have to add: Until the Minister presented his statement about half an hour ago.’ The Mission visited the Bougainville area in March 1968 - 9 months after the signing of the agreement - and the report of the Mission states, in paragraph 239 on page 29:

While the prospect of such a large enterprise of great potential economic benefit is welcomed throughout the Territory and on the island of Bougainville itself, considerable criticism and difficulties have been encountered in the immediate area and particularly among the local inhabitants in the mountains of Panguna whose land is directly affected. Lack of understanding of the nature of the agreement and of the law concerning ownership of sub-soil resources, combined with insufficient initial public relations, has resulted in hostility and resentment among the landowners which is only recently and slowly being dissipated. Both the Administration and the company are engaging in a continuous educational and public relations campaign among the people involved.

That resembles a reference made by the Minister this afternoon to radio stations, news sheets and so forth. The paragraph in the report concludes:

Recently some of (he landowners have begun to work for CRA, although some refuse to work on any piece of land to which they claim ownership.

This is a further indication that no real attempt was made to educate these people on the benefits that might be brought to the Territory of Papua and New Guinea by the development of copper resources in the area. Nobody suggests that the Administration under its mining ordinance, land ordinance or water resources ordinance did not have authority to sign the agreement and to resume any land which Boungainville Copper Pty Ltd desired for its purposes to carry out the project to a successful conclusion. The Opposition, however, suggests that the whole project has been handled in a hamfisted manner. This is the first of many large scale operations which are likely to create similar problems of land tenure, registration, leasing and resumption of land in the Territory. All of the future problems must be handled much more efficiently and with greater understanding than the present project. In these days of travel to the moon and of transistor radio, Australia must understand that the people of Papua and New Guinea know of, but perhaps do not understand, what is going on in the world around them. They certainly appear not to understand what is going on in the Bougainville area at the present time.

They are simple people with simple values. The land which they and their forbears have tilled for hundreds of years is the only real thing of value in their lives. We cannot take it without explaining why it is required and the general advantages it will bring to the people of Papua and New Guinea as well as to their ‘wan toks’. The approach which the Administration took on this issue - and I dare say on similar issues since the end of World War II - is based on the old attitude which is described in pidgin English as ‘Masta i tok, tok i dai’, a rough translation of which means: ‘The master has spoken. The talks are finished.’ The rub in this case is that no talks took place before mid-1966, and the agreement was signed in June 1967. The Administration is now in the untenable position of having to abide by an agreement which does not meet with the approval of people who know, from years of experience, that land is a valuable asset and is worth fighting for. The people of Australia and the people of Papua and New Guinea, therefore, judge the Australian Government and the Administration of the Territory guilty of an offence which offends hundreds of years of culture and tradition. 1 submit that every member of the Government has a case to answer - a case which has caused a great deal of embarrassment to all Australians.

Mr DEPUTY SPEAKER:

-Order! The honourable member’s time has expired.

Mr FOX:
Henty

– The honourable member for Lang (Mr Stewart) said that the present position in Bougainville has arisen because the Government places profits before the welfare of the people of New Guinea. That is a statement which I will shortly prove to be completely false. The honourable member for Lang lays the blame for the present position on the Minister for External1 Territories (Mr Barnes), the Cabinet and every member of the Government Parties. I believe that the blame for what has happened at Bougainville can be laid at the door of those Europeans who have a vested interest in stirring up trouble and unrest. The speech which has been made by the honourable member for Lang has done nothing to help the position in Bougainville. I want to make it clear at the outset that whatever I have to say will be said as a result of first hand knowledge of what is going on in Bougainville. It is less than 3 weeks since I returned from a visit there. I do not believe that the honourable member for Lang, who just spoke, has been there - certainly not in recent times. With members of the Government Parties Mining Committee I visited Panguna, Kieta and Rorovana and talked to Administration officials, to officers of the mining company and to Paul Lapun, the local member for Bougainville. We talked to villagers of Rorovana at a public meeting which was chaired by Paul Lapun. We talked to the head of the largest mission in that area and also to a man named McKillop, whose property at Arawa probably will be taken over. We talked, too, to another gentleman whose reputation would be known to the honourable member for Lang - a man named Middlemiss.

I believe that members of the Committee received a balanced picture of what is actually going on. But one would gather from the publicity which has been given to this subject that everything associated with the venture is of a minus nature. There are plenty of pluses. Quite a number of people in Australia feel very strongly about this whole episode, but I believe that in many cases their opinions are based on misleading and incomplete information. They cannot be blamed for forming the opinions that they have, because they can form their opinions only on what they are told. AH’ that the public has been told by the Press is that Bougainvillians are losing their land by compulsory acquisition. This is just a bald statement; it is only part of the story and a very misleading part at that. I believe that many critics would change their views if they knew the facts.

It is time that someone gave the facts, and I want to do so. The facts are these: First, freehold land has not been taken at all. The land that has been taken is on a leasehold basis. The people whose land has been resumed will be provided with an equivalent area of land if they wish it. They will be paid an annual occupation fee of 5% of the unimproved value of the land or $2 an acre, whichever is the greater. They will be paid a minimum of $2 for every tree on their land, whether it be a coconut tree or a cocoa tree. They may be paid a greater amount but it will not be less than $2. They will be provided, on the new land given to them, with the same number of trees that they have at present, and the company will see that because a coconut tree takes 10 years to bear they will be provided with the equivalent amount of fruit that they would have taken from trees on their own land for 10 years. If they do not want to go and pick that fruit on another block provided for them, the company will deliver the fruit to them in bags. The company has undertaken - and I have the company’s authority to say this - that when other land is provided for these people the company will erect for them on that land not grass huts, to which they have been accustomed, but European type houses. They will not be five-room brick houses but fibro houses with a water supply attached.

At the mine site $50,000 already has been paid for the village site. The company has undertaken to rebuild the village on a new site which is satisfactory to the natives. It is actually the site on which the village existed 50 years ago. These people will be receiving $20,000 per annum in occupation fees and $80,000 per annum in royalties.

The people from that village will receive $100,000 annually from the company as long as copper is being mined there. The Administration in New Guinea has been offered the right to take up, on behalf of the people of the Territory of Papua and New Guinea, 20% of the capital investment in the area. The company itself is being given tax freedom for 3 years after which it will be taxed on a rising scale until about 1980 when the taxation will be at the rate of 50% .

Let us look at what the Territorians will receive. They will receive royalties with relation to the value of the copper which is being taken. They will get 20% of the profits. They will get 50% of the profits by way of taxation ultimately and they will get occupation fees. In addition to this the company is providing employment for quite a number of the natives. I understand that already more than 600 are employed by the company. We went into the assay room at Panguna where already very sophisticated equipment is being used for assaying the minerals that are being taken. This equipment is being operated by the native people. They are being checked each morning but the officer checking them said that there is no need for this because they are nearly always accurate. This is a useful skill that they are being taught. Development roads will be built and a new port will be provided as will be new schools and a hospital. A co-operative company is being set up with a 50% native ownership. In not many years, the total ownership will be given to the natives.

The company already has spent more than $21m on exploration, and it will spend a total of $300m on capital works. It expects by the mid-1970s to be earning about $50m annually. This will be the largest amount that the Administration of New Guinea or the people of Papua and New Guinea will receive from any source other than from the taxpayers of Australia. Many people who live in Bougainville have been upset, but they have been stirred by people with vested interests in creating trouble. It is easy to stir up trouble. We have only to look at the trouble that has been created in some Australian universities and at what happened outside the United States Embassy with the burning of flags and the breaking of windows. If the right type of people are doing the stirring, it is easy to upset people. The people of Papua and New Guinea have been told to wait for independence when they will get the whole amount and not 20% , but actually they are not getting 20% but more than half of the profits, as I have indicated.

The company is training these people to take over gradually the operations of the company so that when the time finally arrives they will be able to run everything efficiently for themselves. If they want to go on with it straight away, where would they get the $300m to do it? If they wait until independence comes - whenever that may be, and <I am not putting a time on it - they will still need the ability to finance the project and they have no guarantee that the price of copper then will make it profitable - for such an amount to be spent. None of us knows whether there will be a demand for copper in a few years time. The honourable member for Lang has talked about these people being upset and our upsetting the people of Papua and New Guinea. In addition to visiting Bougainville we visited a place called Maprik, which is about 50 miles west of Wewak. Native gold miners came to talk to us. Their attitude was: ‘Why cannot the company come up here and search in our area so that we can get some of the benefits that are going to Bougainville?’ These people have not been stirred up by trouble makers.

If the Opposition really wants to help the people of the Territory it would do better to point out to the people the great advantages that will result to them from a successful operation by the company and the fact that they would be better prepared for independence, which this Government wants to be successful. The Liberal-Country Party Government wants to develop a strong New Guinea. We want a united people and a New Guinea strong enough financially to resist infiltration and aggression from quarters which have a vested interest in their making a failure of independence.

Mr HAYDEN:
Oxley

– The Opposition’s proposal is not in protest against the development of mineral resources on the island of Bougainville. It is a protest at the way in which certain aspects associated with that development have been handled by the Administration of the Territory which, of course, is backed up by the Department of External Territories and the

Minister for External Territories (Mr Barnes). What we are protesting at is the naked viciousness of our materialism as we have seen it displayed in Kieta in recent times. The agreement at Kieta is being enforced by tear gas, batons and the use of a para-military force. The Minister for External Territories has suggested that this is emotionalism, but after all we all become emotional about something. Indeed, some people become emotionally concerned about the welfare of race horses. I would suggest that people such as those should not be too critical about those who become emotionally concerned with the welfare of human beings.

Surely to God we should have learned a lesson from the Suez debacle. This Government - a new face on the same carcase - under Prime Minister Menzies was an enthusiastic supporter of armed intervention by the United Kingdom in Suez against the Arab States. What was the result of that armed intervention? It achieved no acquisition for the British Government, but an area of Arab countries which previously had been within the sphere of British influence is now within the sphere of Russian influence. Surely there is a lesson for the Government to learn from this in its handling of the situation in Bougainville. This is an area of long standing disaffection with the Administration. It has been a centre of the cargo cult, as a result of which on many occasions it has come into sharp conflict with the Administration.

The people on the island of Bougainville are black skinned Bukas. They are very proud of the fact that they have black skin; that they are different from the copper skinned people on the main island of Papua and New Guinea. They see their affinity not with Papua and New Guinea as a nation conceived by the Government; they see their affinity with the Solomon islanders. There is already a strong breakaway movement at Bougainville to form a new nation with the British Solomon islanders. The very things for which the Government is responsible today and for which it tries to foist responsibility on to the House of Assembly at Port Moresby are calculated, not intentionally but through incompetence, to undermine and destroy the Government’s announced objective of national unity in Papua and New Guinea.

The Minister for External Territories has made the claim on a number of occasions that the House of Assembly at Port Moresby is responsible for the agreement which is being enforced at the present time. This is altogether too facile an explanation of what has transpired. In the first place, the Minister uses the House of Assembly at Port Moresby as a mask to cover his own ineptitude, that of his Government and that of certain people who work, in University Avenue in this city.

Let us look at some of the facts about the House of Assembly at. Port Moresby. It is quite remote geographically from the people of Bougainville. There are eight. three members in the House of Assembly. Only three of them come from Bougainville. So given the standard of understanding of nationhood existing in Papua and New Guinea at the present time - it is practically non-existent - it is quite wrong for the Minister to suggest that this has been a responsible decision by the House of Assembly after careful consideration of all the facts involved. Does the Minister suggest that the use of tear gas and batons at Rorovana, and no doubt to be repeated at Arawa if necessary, has resulted from a decision of the House of Assembly at Port Moresby? Of course it has not. It has been a decision of the Administration, and no doubt the instructions have come from Canberra.

If one looks at the agreement and the “Act related to this matter one finds that the Administration has tremendous powers to vary the conditions of any lease. This is vitally important in the discussion in which we are now engaged. In fact, it is the Administration itself making the decisions about the variation of leases for the absorption of certain lands. The Minister euphemistically calls them resumptions, but he would call them seizures if he were more accurate. The facts are that in the discussions in the House of Assembly at Port Moresby there was quite clearly confusion in members’ minds as to the implications of the legislation which they had before them. Mr Grove, Director of Lands, Surveys and Mines, at page 2,408 of the House of Assembly debates on 8th June 1967 admitted that the agreement was a long and complicated document. Paul Lapun, one of the members representing the island of Bougainville in the House of Assembly, saW at page 2,556 of the House of Assembly debates on 30th August 1967 that he had discovered that not only native members of the House of Assembly but expatriate members too had experienced extreme difficulty in understanding the agreement. It is little wonder. It is an involved and lengthy legal document. To have some of the sections interpreted in the articles of the agreement I had to seek the advice of some of the legal practitioners who are members of this House. So how can one reasonably expect members of the House of Assembly and more especially the native members who have had, I expect, no experience in legal matters, to interpret this involved, long and difficult document?

I said that there was confusion. There was also misunderstanding on the part of native members of the House of Assembly. Mr Lapun, at page 2556 of the House of Assembly debates on the same date that I mentioned earlier, said that he was happy to accept the agreement because he believed that the undertakings which it covered were restricted to Panguna. He did not conceive that there would be any extension of activities to Arawa, Rorovana or any other places in the Kieta district, as is generally being anticipated at the present time. Mr Grove, the Director of Lands, Surveys and Mines, on 8th June 1967 made a statement which clearly implied that the agreement would be restricted to Panguna. Let us not have any strict technical interpretations along the lines of semantics of what he said, because clearly the gist of what he said implied that the agreement would be restricted to development at Panguna. He said:

It is almost certain that, if the mining operation commences at Panguna, a modern town with new houses, water and electric power will start to grow.

He then went on to indicate the sorts of benefits which would obtain as a result of this development. Mr Lapun made his statement in the House of Assembly some 2 months after Mr Grove made that statement. I can find no evidence anywhere in the House of Assembly debates that Mr Lapun’s misconception of how this agreement was to be applied was corrected by responsible officials in the House of Assembly. Then we have the insensitiveness of the Minister for External Territories who, according to Mr Paul Lapun in the debates on 23rd November 1966 on the

Mining (New Guinea) Bill (No. 2) 1966, after outlining a long list of causes for discontent and disaffection among the people at Bougainville as the result of this mining project, said:

A third thing, Sir, which makes my people antigovernment. When the Minister for Territories, Mr Barnes, visited us, he was asked if part of the royalties could be given to the Bougainville District Development Fund and if another portion could go to the owners of the land and, thirdly, if what remained could go to the Government. The Minister told the people that they had to observe Australian law, which is that royalties for minerals go to the Government and not to the owners of the land. The Government uses this money to develop the entire country. When they heard that all of the royalties would go to Port Moresby and none of them remain in Bougainville, the people asked themselves how then could Kieta become a large township. This finally made them of the opinion that they could believe nobody at all.

The implications of this are clear. There is confusion and misunderstanding and, even worse, there is lack of trust on the part of the native people towards the Administration. This is the sort of record for which the Government is responsible.

The Minister is trying to claim that the House of Assembly freely, and with full information available, made a decision on this agreement. Clearly these few snippets - they are all I can quote in my restricted time - indicate that there was confusion, especially in the minds of the native members of the House of Assembly. Therefore, the decision they arrived at certainly cannot be regarded as a reliable one. In this sort of situation we ought to bend the normal parliamentary procedures, because this is not a fully developed country. It is an under-developed country and they are still at an experimental stage with their parliamentary procedures. This matter should be returned to the House of Assembly so that the people can discuss it and hammer these issues out. In any event, we ought to set up the Australian parliamentary committee which we have proposed with the objective of retrieving a situation which is worsening and which could become irretrievable unless something positive is soon done.

Dr MACKAY:
Evans

– We have heard a speech from the honourable member for Henty (Mr Fox) in which he set out the physical facts of the situation at Bougainville in such a way that no Australian studying them could help but come to the conclusion that something has happened in Bougainville, and therefore in the Territory of Papua and New Guinea, which is providential for the future of the people with whom we are concerned. The overall picture in the past years has been one of deep rooted concern that a nation which was moving towards independence might one day be hamstrung in that independence because it would not have within it the economic potential for selfreliance and its own viability. This situation has been changed dramatically and rapidly in the past few years because an enormous deposit of very low grade copper and a smattering of gold which has been examined over the years by modern methods and which, because of the tremendous scale of development can now be considered to be commercial, can bring these people to a position in world society which they might not otherwise have achieved for a very long time to come. This is the positive side of the picture. At the same time it must be realised that in the island of Bougainville there is a race of very primitive and most unsophisticated people. Most of these people have never seen a road of any size, let alone a town of any size. They have absolutely no concept of what is meant by a major mining venture such as is to come to their country. Description or explanation to these people is almost impossible without illustration.

Contrary to what has been said by the honourable member for Lang (Mr Stewart) I believe that since the first glimmerings of viability emerged, not in I960 or 1964 as the honourable member sought to suggest, but when the company first became aware of the fact that this venture could be commercial - for a long time this did not appear likely - there have been unceasing efforts to explain to the people what is involved in the setting up of a city which will be the capital city of Bougainville^ - the capital of that part of the world; bigger than Lae or Rabaul. The establishment of this city will be a major contribution to the entire development of the Territory. Now a situation has emerged which has brought about a state of confusion and fuss and bother in the area. One wonders why this has come about. 1 believe that the answer is most simply given by a Christian gentleman, I would have the honourable member for Lang understand; by a member of his own faith,

He is a missionary who has lived there virtually all his life. He told me that the people have been stirred up in about ten villages by one European, who is manager of a local plantation. He told me that before that happened things were very quiet. As far as he was able to ascertain the people had accepted the fact that the town would be there. He was not referring to the mine at Panguna, which the honourable member for Oxley (Mr Hayden) claims is the only development which the natives expected. The missionary told me that the people accepted the fact that the town was to be there, in the Rorovana area in Kieta. lt was only when this matter was stirred up that the people began to turn.

Those are the words of the missionary; they are not the words of my committee, which took evidence from a large crosssection of people. It is my belief that a deliberate attempt has been made to create trouble and to exploit problems, firstly, by vested interests in the Arawa - the white man’s plantation. This is a magnificent piece of territory. It has been efficiently run. Tn anybody’s eyes it is a shame to see these lovely trees destroyed, but this is to make way for something so valuable to 2£ million people. Contrary to what the honourable member for Lang has said, the hearts and minds of 2£ million people in Papua and New Guinea have not been estranged by what is going on. As the honourable member for Henty pointed out, we were besieged by inquiries as to how soon similar things might take place in other parts of the Territory because the advantages of what was happening were obvious to people with a little more sophistication. It is laughable for the honourable member for Lang to suggest that this land has been resumed by force. What has been done by force, if you like, has been that a few policemen have acted against one or two people who were deliberately stirred up on the admission of this person who went about ceaselessly from village to village encouraging the people, as we were told in evidence, by offering to supply them with arms and to fight alongside them if they would stand out against the Administration. This is the kind of stirring that has been going on.

But there has been more, because into this area - on two occasions the ‘Four Corners’ team has gone, with one objective - to highlight divisions and differences between races. Here and now 1 accuse the Four Corners’ team of deliberate and calculated distortion. I accuse it of the attempted creation of racial clashes. We were given evidence of those whom the team approached with a view to creating demonstrations which it could photograph to show to the Australian people. We were told of the suppression of facts given to the Four Corners’ team by the news sources of the Territory. We were told by reporters that they had offered facts to the team which would have presented a very different picture from the one presented to the Australian public on its television screens. These facts were rejected out of hand by the Four Corners’, team. Other facts relating to the harmony and co-operation that existed between the Administration and the native people were given to the ‘Four Corners’ team but were rejected as not being within the charter which the team was in the Territory to pursue. I believe that the ‘Four Corners’ team went to the Territory to produce a series of programmes designed to destroy good relations between white and black people and especially to undermine the Administration. It is one thing for the Government and particularly the PostmasterGeneral to defend the Australian Broadcasting Commission against political pressure. It is quite another thing to defend it when it seeks to stir up hatred and violence that could endanger the lives of devoted Australian public servants who would serve a government of the opposite persuasion to the present Government just as faithfully as they serve this Government. I believe that this has been done.

When people have been stirred in this way at the point of their deepest emotions - their land - how do you get them to accept facts of the kind presented by the Minister for External Territories (Mr Barnes) and the honourable member for Henty? I believe that there is need for a firm decision to be made. What is the alternative? Should we allow a minority to set back the tremendous opportunity presented to millions of people in the Territory? The analogy that comes to mind is that of parents with a child who has a club foot. That child has been frightened by tales of what happens in hospital and so cries that it does not want an operation to restore it to full health and enable it to become a responsible and capable person in its adult years. I believe that a similar situation has emerged in the Territory. Many times I have discussed with my colleagues the invidious position in which Australia is placed. On the one hand we ask why we should get the kicks for something which for the most part will benefit the islanders or the company concerned. But this is not all: Should we leave these people to be exploited by those who, for their own objectives, political or financial, want to stir them up?

What of Australia’s financial outlay in the Territory? Are we prepared to deny Australians schools, pensions and development of all kinds while we exploit our own ore resources in this country and not ask the Territory to share the burden? What alternatives does the Opposition propose? The honourable member for Wills (Mr Bryant) went briefly into the area. He proposes that the company delay its operations until the Territory has produced its own trained engineers and geologists. This would take 10 or 20 years, during which time, of course, Australian taxpayers would bear the burden. This is not the answer. Nor is the appointment of a select committee from this House the answer. A select committee there may well be. and should be, but I believe that it should be a committee appointed by the indigenous members of the House of Assembly. If they do not consider that it is necessary to have an inquiry, what kind of colonialist arrogance lies behind the suggestion that in this House we should override the decision of the House of Assembly and move into the Territory with our own inquiry into something which the House of Assembly itself has supported and which I believe still supports to a man? I think that the Opposition’s suggestion is arrogant in the extreme.

Mr DEPUTY SPEAKER:

-Order! The discussion is interrupted and will be resumed at a later hour.

Sitting suspended from 5.59 to 8 p.m.

page 30

APPROPRIATION BILL (No. 1) 1969-70

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

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

Mr SPEAKER (Hon W J Aston:
PHILLIP, NEW SOUTH WALES

– 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 Bil) be now read a second time.

In doing so, I present the Budget proposals for the financial year 1969-70.

Again, social welfare has an honoured place in the proposals I make. They take us much further along the road the Government is determined to follow in accordance with the policy it initiated last year. It will remain our continuing policy to help the aged, the sick and those in need, and to do so in a way that will encourage selfhelp, thrift and provision for the future.

Repatriation benefits will be increased. Greatly increased financial aid for education will add to the scope and quality of the training and cultural development available to our young people as well as to older students. Additional funds will be provided to support the programmes to assist our Aboriginal citizens.

We shall again provide adequately for defence, for financial assistance for the States, for additional assistance to industry, for some measures of taxation relief and for many other purposes.

page 31

ECONOMIC CONTEXT

The various proposals, which I shall refer to in this Speech, are brought forward, it must be remembered, in conditions of high prosperity.

Output and Employment

For both output and employment, 1968-69 was an exceptionally good year. Gross national product increased by 12% to $27,1 14m at current prices. Measured at constant prices the growth rate in real terms was more than 8.5%: approximately 2% being the result of the big increase in rural output following the drought of 1967-68. With allowance for this, a real growth rate of about 6.5% for the rest of the economy was a notable performance.

Net immigration was at the highest level since the 1950’s and added about 60,000 migrant workers to the workforce. Employment rose by about 150,000. Outside the rural sector, productivity seems to have risen by about 3.5%: the gains were widespread through industry and were particularly rapid in mining.

Demand

Last year’s increase in output was matched by rising demand, except in the oversupplied world wheat market In the earlier months of 1968-69, consumer spending increased rather slowly. It gained strength as the year went on and, for the year as a whole, increased by 6.7% to a total of Sl5,677m.

Private capital expenditure accelerated in 1968-69 to reach boom levels. Expenditure on dwellings totalled $ 1,256m, an increase of 16% over the previous year. Expenditure on other buildings and construction rose by 15% to reach $1,0 15m. After rising by only 3% in 1967-68, expenditure on plant and equipment last year increased by 10% to $2,375m. Private investment can therefore be clearly identified as the driving force behind the expansion of the economy that became apparent in the latter half of 1968-69.

Total spending by Governments and their instrumentalities also increased - by 9% to $5,948m. This was slower than the rate of increase in gross national product at current prices - 12% - and slower also than the 12% increase in public spending in 1967-68. Outlay in Australia from the Commonwealth Budget was $5,959m, which is 7.6% greater than in 1967-68 when it rose by 8.5%.

By contrast, these figures emphasise the dominant part increased private investment played in lifting gross national expenditure which last year rose by 11% to $27,461m.

The effects of the strong rise in demand began to show up in the labour market half-way through last financial year. At the end of December 1968 the seasonally adjusted figure for persons registered for employment was 67,439 a-nd for unfilled vacancies 36,866 - a difference of 30,573. By the end of June the corresponding figures were 55,308 and 44,411 respectively, so that the gap between the number registered for employment and unfilled vacancies was reduced to 10,897. This tightening occurred despite the big migrant inflow and the continuing addition of large numbers of married women to the employed workforce. There is no sign yet that pressure in the labour market is being reduced. On the contrary, the information available to us indicates a continued tightening.

Costs and Prices

An unwelcome feature of the rising pressure on resources has been the over-rapid increase in costs. In the March quarter of 1969 average weekly earnings were 8.6% above the level of the year before and for 1968-69 as a whole the increase was about 7.25%. In the earlier months, the concentration of major award increases strongly contributed to the rise in wage costs. More recently, over-award payments and other elements of wage drift have had a significant effect. As a consequence of these higher costs, the consumer price index increased by 2.9% during 1968-69. The nonfood groups in the index increased by about 3.75% - a much faster rate than in 1967-68. This emphasises the effects of increasing costs on the non-food elements in the index.

Liquidity

Last year more than $200m was added to our holdings of gold and foreign exchange. On official account, external payments exceeded external receipts by more than $400m. On private account, the opposite occurred. An excess of external receipts over external payments of more than $600m added considerably to monetary liquidity in Australia. The big increase in Rural Credits advances by the Reserve Bank, mainly to finance the record wheat harvest, also added to the money supply. On the other side of the ledger, the domestic surplus of receipts over outlay in the Commonwealth Budget reduced monetary liquidity. Despite this, the money supply in the form of trading and savings bank deposits and notes and coin in the hands of the public increased by $1,1 69m or 9.1%. The increase in the previous year was 8.3%.

There can be no doubt that the free availability of money has been contributing greatly to the growing strength of demand.

page 32

THE YEAR AHEAD

At this stage indications are that 1969-70 will be another year of strong economic growth. Except in parts of Queensland and Western Australia, seasonal conditions are promising and rural output should again increase. We could not, however, expect to repeat last year’s gain in rural production which followed the recovery from the drought of 1967-68. The output from other sectors of the economy also should rise well even though, with unemployment at a low level and mainly of the shortterm kind, the labour market is now much tighter than it was a year back. Practically all additions to the workforce will have to come from the ranks of school-leavers, married women entering the workforce and newly-arrived migrant workers. The numbers added from these sources will probably be much the same as last year so that, with not much change in the present low level of unemployment, it seems unlikely that this year’s increase in the numbers employed will be as great as last year’s. Nevertheless, given productivity increases comparable with those of last year, non-farm output should expand at a rate not far short of that achieved in 1968-69. An increase of at least 6% in gross national product at constant prices seems a reasonable forecast to make. If other countries can get 4% increase in gross national product they feel that they are doing pretty well.

With the expectation that there will be another good year for output we have to ask how the trends in demand are likely to develop. The rate at which incomes are rising leaves no doubt that consumption expenditure will continue to gain strength. Consumption normally accounts for about 60% of gross national expenditure so that even a small acceleration in its rate of growth can add substantially to the demands on domestic output and imported supplies.

Spending by Governments and their instrumentalities for both current and capital purposes accounts for slightly more than 20% of gross national expenditure. Last year this expenditure increased by 9%. This year it seems likely to rise at much the same rate.

The other main branch of expenditure is private investment. Another year of largescale private capital outlay seems certain. A number of big mining and other projects are at present in progress or will soon begin and give rise to a large amount of private capital expenditure.

How strongly this expenditure will be supported by capital inflow is one of the uncertainties we have to allow for. Present conditions in capital markets abroad suggest that it would be prudent to allow for a reduction in capital inflow this year. If that occurred, it could have a direct effect on capital expenditure and would tend to modify the influences adding to monetary liquidity.

At present, however, capital expenditure is imposing a considerable strain on the economy. At least in some States, the demands now being made on the building industry in particular must be pressing closely against the limit of resources. Shortages of building materials have shown up, costs have been rising at an increasing rate and construction times have lengthened. Any aggravation of these conditions must be harmful both for homebuilders and the industry.

Balance of Payments

It has to be recognised that any tendency for demand to outrun supply in the home market will have adverse effects on the balance of payments. In looking ahead, then, we must take account of the implications of excessive pressure developing in some sectors of the economy. I shall say more on this question later.

The prospects for exports seem reasonably good except in the overseas wheat market. Rural exports should increase in volume and, provided prices hold, should once more add to our export earnings. Another big rise in export of minerals is certain and it is reasonable to expect exports of manufactures to improve.

A rise in domestic demand is bound to attract additional imports. There could well be a trade surplus but the deficit on invisible payments will increase. Whether the net inflow of capital will balance the deficit on current account is difficult to assess. Excluding defence credits, official capital transactions abroad involve debt repayments amounting to some $200m and conditions in the international capital markets are not at the moment particularly favourable to loan raisings. Summing up, we can reasonably hope that there will be an approximate balance in our external transactions. We cannot, however, rule out the possibility that we may have to draw to some extent on our external reserves. These reserves are, fortunately, strong enough to enable us to cope with a temporary oversea payments deficit.

page 33

THE BUDGET AND THE ECONOMY

In determining the structure and consistency of this year’s Budget, we have endeavoured to make it fit the prospective economic conditions, including likely movements in monetary liquidity. In last year’s Budget, the deficit - or the amount borrowed to make up the difference between expenditure and all revenue receipts - was reduced, as compared with that of the year before, by $257m to a net amount of $385m. This year we are budgeting for a deficit of only $30m or $356m below last year’s deficit.

We estimate that total receipts will rise by $825m or 13.5% to S6,954m because of buoyant conditions and strong demand. Expenditure is estimated to rise by $469m or 7.2% to $6,983m.

The direct demand the Budget expenditure will make on resources is measured by the estimate of net expenditure on goods and services. This excludes transfer payments, such as pensions or interest, and net advances, such as those made to the States. In this Budget, this expenditure is estimated to increase by only 1.2% to $l,949m, compared with an increase of 7.8% in 1968-69. The much slower rate of increase is accounted for largely by a substantial reduction in defence spending abroad.

It has to be emphasised that it is expenditure in Australia that adds directly to demand on local resources. Net Budget expenditure in Australia on goods and services is estimated to increase by 7.3% to $ 1,646m - a significant reduction on last year’s 10% increase.

We expect total outlay in Australia, including welfare and other transfer payments and advances, to increase by 9.6% to $6,533m compared with last year’s rise of 7.6%. In the main, this is accounted for by increased welfare payments and the additional funds going to the States.

We estimate that total receipts in Australia will exceed outlays in Australia by about $500m in 1969-70. This domestic surplus would be about $300m greater than that achieved in 1968-69. Since it represents a net withdrawal of a comparable amount from the private sector’s monetary holdings in Australia, the domestic surplus should have a considerable effect in modifying the expansion of domestic monetary liquidity. This effect would be strengthened to the extent that net sales of Commonwealth securities were made to the nonbank public in Australia. Less buoyant liquidity conditions will, of course, help to contain increases in spending from local borrowings or other capital raisings in the Australian market.

page 34

EXPENDITURE ESTIMATES, 1969-70

I now turn to the expenditure estimates and the main policy decisions affecting them. To avoid wearisome detail, I shall give only the costs in 1969-70 of new expenditure proposals. In many instances their full-year costs will be considerably greater. Detailed analyses will be found in the statements attached to this Speech.

Defence

The Defence vote will fall this year to an estimated $1,1 04m or about 5% less than last year’s defence expenditure of $l,165m.

Defence expenditure overseas is expected to be about $243m or $87m less than last year.

The financial requirement is somewhat smaller mainly because parts of the major equipment programme have been completed and for some projects some of the expenditure is being spread into later years.

It does not amount to a reduction in our defence effort

As my colleague, the Minister for Defence, has announced, the defence programmes of the future will not be limited to set 3-year periods but will always look 5 years ahead and be kept under constant review. In accordance with this concept, studies have been undertaken in the Defence Department and equipment and works proposals have been brought forward and approved for inclusion in this Budget. Studies are continuing on other projects and as these are approved they will be admitted to the programme. The projects so far approved include ship construction and various items of capital works and equipment. The ship construction programme will include a fast combat support ship, a hydrographic ship and an oceanographic ship for the Navy and heavy landing craft for the Army. It is also proposed to put in hand a preliminary design study for new light destroyers for the Navy as replacements for some of the R:A.N.’s existing destroyers. There will be technical items of equipment ordered for all Services. The Army will be authorised to enter into forward commitments this year with the object of acquiring additional arms and armaments. This authorisation could involve expenditure of up to $60m next year but, as the orders placed will include long leadtime items, there will be a continuing commitment for expenditure in later years. A decision has also been taken to proceed with major airfield works at Learmonth, Western Australia; it is unlikely that there will be any expenditure on the project in 1969-70. Al) of these proposals, about which the Minister for Defence will give details in the course of the Budget debate, will add substantially to our defence capability.

Further additions to the strength of the Forces are planned for the year ahead. It is expected that, by the end of this financial year, the strength of the Navy will have risen from’ 16,943 to 17,360, of the Army from 46,525 to 48,010 and of the Air Force from 22,712 to 23,660. These additional numbers are required to man new ships and aircraft coming into service, meet operational commitments overseas and provide supporting elements in Australia. The Citizen Military Force is expected to increase from 34,256 to 36,000.

I turn now to one of the most important features of the Budget and that is social welfare.

Social Welfare

The expenditures grouped under social, welfare constitute the largest single item in the Budget. They include expenditure on social services, repatriation, health and housing and are estimated to rise this year by $ 192m to total $ 1,659m.

Over the past year, the Government has continued to give a great deal of attention to this area. In a wide and searching examination of the needs of the less fortunate members of the community, we have had the assistance of the Welfare Committee of Cabinet under the chairmanship of the Minister for Health. The proposals that I shall now outlinegive relief to the aged and our needier people and at the same time give positive incentives to thrift and self-reliance.

Expenditure on social services is expected to increase by $134m to a record level of $999m, largely because of the new proposals which the Government will put before you.

Expenditure on repatriation pensions and benefits is expected to rise by$8m to $293m. Health and housing benefits are expected to require$367m, an increase of $50m.

Age, Invalid, Widows* and Service Pensions The maximum weekly rate of pensions payable to single age and invalid pensioners and widows with children will be increased by $1 to $15 per week. For widows without children the new weekly maximum rate will be $13.25. The pension payable to a married pensioner couple will increase for each by 75 cents a week so that the maximum rate of their combined pensions will be $26.50. Persons in receipt of service pensions which are repatriation benefits - will receive similar increases as will tuberculosis sufferers in receipt of allowances. For the future, the latter will, in addition, be eligible for certain benefits and concessions available to social services pensioners.

The Government has given particular attention to the needs of widows with children and proposes to introduce special measures to assist them. The allowance payable for each child, after the first, of a widow pensioner will be increased by $1 a week to bring the total payment, excluding child endowment, for each such child to $3.50 a week. This benefit will also be extended to children, other than the first, of age, invalid and service pensioners. As a further measure of assistance, the mother’s and guardian’s allowance is to be increased from the present rate of $4 per week to $6 per week in cases where there is a child under the age of 6 or an invalid child requiring full time care. As well, the deduction from income for means test purposes for a dependent child of a pensioner is to be increased by $1 a week to $4 a week. A widow pensioner with, say, three dependent children may thus earn $22 a week, hold property of a value up to $4,500 and still receive full pension and allowances. All these new benefits will be extended to age, invalid and service pensioners in appropriate cases.

We have also decided to modify the residence qualifications for widows’ pensions so that certain women who are widowed overseas may be eligible for a widow’s pension on return to Australia provided they have lived in Australia for a continuous period of 10 years. Because of the number of persons who have, in the past, migrated to Australia, and now wish to visit their home country, it is intended to permit pensioners making temporary visits overseas to receive payment of pension for up to 30 weeks absence on return to Australia. The present limit is 12 weeks.

Persons who become pensioners because of the proposed increases in basic rates of pension will become members of the Pensioner Medical Service, giving them entitlement to free medical and hospital treatment and free pharmaceutical benefits. They will be entitled also to other subsidiary benefits provided by the Commonwealth, such as reduced radio and T.V. licence fees, telephone rentals, hearing aids and funeral benefits. Persons who become pensioners for the first time because of the introduction of the ‘tapered’ means test - to which I shall now refer - will not, however, be eligible for membership of the Pensioner Medical Service or entitled to any other subsidiary fringe benefits.

Mr McMAHON:
LP

– Wait a moment and you will find that all your propaganda for the next election is ruined.

Liberalisation of the Means Test

I now come to the liberalisation of the means test. Liberalisation has been the continuing policy of the Government, and the proposal I now outline will represent the most significant move forward since the Government assumed office.

Under present pension arrangements, where a pensioner has means in excess of the ‘free’ level - $10 per week in the case of a single pensioner and $17 per week in the case of married pensioner couples - the pension payable is reduced by $1 for every $1 of means in excess of these limits. This provision does not provide any incentive to earn or provide for additional income. The Government proposes, therefore, to introduce a ‘tapered’ means test under which additional means in excess of the ‘free’ limits to which I have referred will, in future, reduce the age, invalid, widow’s or service pension by only 30 cents for each additional dollar of means. As a direct consequence of this change, single pensioners with means in excess of $10 per week will all receive increased pensions and eligibility for some pension will not cut out until their means reaches $40 a week instead of $24 - the cut-off point at the existing pension rate. In the case of married couples, both being pensioners, eligibility for some pension will continue until their joint means reach a level of $70 per week.

When I come to the revenue estimates I shall outline additional concessions we propose to give under the Income Tax Age Allowance to take account of the ‘tapered’ means test.

It is expected that approximately 250,000 persons will become eligible either for pension for the first time or for increased pensions under the proposed ‘tapered’ means test.

Aged Persons Homes Scheme

We propose also to introduce a new allowance of $5 a week for persons of 80 years of age or over who receive approved personal care while living in hostel type accommodation provided by organisations eligible under the Aged Persons Homes Act. It is also proposed to amend that Act so that the value of land, acquired before 1957, will be eligible for subsidy. Previously, the value of land purchased or held by an aged persons’ homes organisation prior to 1957 has been excluded from the capital cost for the purposes of determining the amount granted by the Commonwealth towards the erection of a new home.

Unemployment and Sickness Benefits

The rates of benefit payable to unemployment and sickness beneficiaries will be raised. In the case of a married minor or adult the rate will be increased by $1.75 to $10 per week and the allowance for a dependent wife by $1 to $7 per week. Where there are children in the family of an unemployed or sickness beneficiary, the allowance for children under 16 will be raised by $1 to $2.50 a week in the case of a first child under 16 and by $2 to $3.50 a week for second and subsequent children. Appropriate increases will be made in the allowance payable to unmarried minors. Where they have no parent living in Australia they will receive the adult rate of benefit. At the same time the amount of income which may be received without affecting entitlement to the full rate of benefit is to be increased by $2 to$6 a week in the case of adults or married minors and from $2 to $3 per week in the case of unmarried minors.

In order to relieve hardship in cases where there are frequent periods of unemployment or recurrent sickness, beneficiaries will in future need to serve only once in any period of 13 consecutive weeks the waiting period of 7 days before unemployment or sickness benefit can be paid. The Director-General of Social Services will also be authorised to exercise a discretion to waive recovery of all or part of sickness benefit in cases of hardship or special circumstances such as where inadequate compensation or damages are obtained. At present full recovery is mandatory.

The total cost of all of the social service proposals I have announced is estimated to be $73m in 1969-70. In consequence, total expenditure on social services this year will be $999m.

Health Benefits

In regard to health benefits, another memorable change has been made by this Government. Consideration has been given to the recent recommendations of the Nimmo Committee. It is now proposed to provide free health insurance benefits equal to standard fund and Commonwealth benefits for - family groups of at least two units, excepting those of pensionable age, where the family cash income does not exceed $39 a week; all unemployment and sickness beneficiaries for the period for which they are on benefit plus four weeks - but if they are not insured when first entitled to benefit, there will be a waiting period of two weeks; all migrants for a period of two months after arrival in Australia.

Details of the machinery under which these benefits will be made available will be announced shortly by the Minister for Health.

Housing

The Commonwealth is already assisting in the provision of housing for the aged, particularly through the Aged Persons Homes Scheme. Nevertheless, we recognise that the housing of some single age and service pensioners with little or no means apart from their pension is below acceptable standards and the rentals they are required to pay are excessive. The States are already providing self-contained dwelling units including units for single age pensioners at reasonable rentals. We believe that more should be done and therefore propose to offer to the States non-repayable grants of $25m over 5 years, beginning this year, so that building of this type of dwelling can be expedited.

Repatriation Benefits

We propose a number of improvements in repatriation pensions and benefits.

The pension payable to a totally and permanently incapacitated war pensioner will be increased by $2.50 per week to $36 per week.

Last year we introduced a new form of assistance - a special compensation allowance payable to certain of the more seriously incapacitated general rate pensioners. We propose to increase this allowance by $2 per week so that a general rate pensioner who qualifies for the allowance will receive $17 per week where his incapacity is assessed at 100 per cent and $12.75 where the assessment is at 75 per cent. The rate pf pension payable to those able to work only part-time or intermittently because of a war-caused disability - the intermediate rate - will be increased by $2.25 to $26.*50 a week.

War widows’ pension will be increased by $1 to $15 a week and, in addition, the domestic allowance payable to most war widows will be . increased by 50 cents a week. In total, then, a war widow receiving domestic allowance will receive an increase of $1.50 per week, bringing her total basic pension to $22.50 a week.

Although they were increased last year, we propose to increase again the allowances payable to certain war pensioners in respect of attendants. The recreation transport allowance and the allowance to assist in meeting the running expenses of a specially equipped gift car will each be increased.

War Service Homes

An extra $5m is to be provided for War Service Homes taking the total to $55m. This recognises the full-year effect of last year’s increase from $7,000 to $8,000 in the maximum loan.

Education

I come to what I regard as another important element in this Budget - in fact, a very important element. Increasingly in recent years the Commonwealth appropriation for education has grown. In a country dedicated to growth, the breadth and quality of education must be a critical element. As well, education and cultural development are objectives in their own right.

The Commonwealth has progressively increased the scale and broadened the scope of its financial support for education. Through specific purpose payments and general financial grants assistance is being provided at all levels and for all types of schools. Over $265m will be appropriated in the Budget for education this year, or 38% more than last year’s expenditure. Within the total, payments to the States specifically for education will increase by 53% to $165m.

Payments will include’ the full-year cost of the new programmes of capital grants for secondary school libraries and pre-school teachers colleges introduced last year. Provision is being made for the programme of development of Universities and Colleges of Advanced Education in prospect for the 1970-1972 triennium, as well for other new policy proposals, to which I shall refer shortly.

My colleague, the Minister for Education and Science, will be making detailed statements about education including the recommendations of the Australian Universities Commission and the Commonwealth Advisory Committee on Advanced Education for the 1970-1972 triennium.

Broadly stated, the triennial programmes are based on the expectation that by 1972 total student enrolment, full and part-time, in Universities and Colleges of Advanced

Education will be more than 45,000 greater than in the current academic year. To meet this expected demand, these institutions will need better capital facilities and greater appropriations for recurrent costs.

The recommended programmes for these institutions in the 1970-1972 triennium aggregate$910m - an increase of $263m on the programmes for the 1967-1969 triennium. The recommended programmes for Colleges of Advanced Education will account for $127m of this increase. Reflecting the growing national importance of applied science and the technologies, expenditures on these Colleges will be more than doubled in the coming triennium.

Of the amount of $9 10m recommended for Universities and Colleges of Advanced Education during the next three calendar years the Commonwealth will provide approximately $420m, the remainder being provided by State Governments and by the fees and other income of the institutions themselves.

During the triennium, grants to the States for Universities and Colleges of Advanced Education are expected to amount to $227m and $93m respectively. In 1969-70 the grants will be $96m, or $19m more than last year. Grants for science laboratories, technical training facilities, teacher and preschool teacher training colleges and secondary school libraries will, in the aggregate, increase by $21. 5m.

For the Australian National University and the Canberra College of Advanced Education, we will provide$30.2m in 1969- 70, of which $22.5m is for recurrent expenditure and $7. 7m is for capita] expenditure. For the next triennium as a whole, the estimated provision will be about $100m.

We share with the States the conviction that the training and education of teachers is critical to help us achieve our objectives. We have reviewed our policy relating to teacher training and have made two decisions. First, we will continue with unmatched capital grants for the construction of teachers’ colleges by the States after the present programme is completed in June 1970. These grants will increase to $30m in the three years to June 1973 as compared with $24m in the previous three years. Second, we will support expenditure both capital and recurrent on teacher education within Colleges of Advanced Education and, indeed, have given the first approvals for the 1970-1972 triennium.

Scholarships

The number of Commonwealth scholarships at the tertiary level will be increased. From the beginning of the 1970 academic year, the number of Later Year Awards for university students will be increased by 2,000 to 4,000. It is also intended to change the basis upon which Mature Age scholarships at the tertiary level will be increased. scholarships tenable at Colleges of Advanced Education will also be increased substantially - from 1,500 to 2,500 a year.

Running Costs of Independent Schools

I come now to an important new aspect of policy relating to education in independent schools. This is a significant development in the policy introduced about five years ago. From January 1970 the Commonwealth will contribute towards the running costs of independent schools throughout Australia. A subsidy at the rate of $35 per primary pupil and $50 per secondary pupil per annum will be paid to the schools. With the assistance State Governments will be providing, the Commonwealth subvention will both help the parents and enable the independent schools to improve their standards.

The State Governments will be offered grants under Section 96 of the Constitution for transmission to independent schools in their respective States. The necessary legislation will be introduced later in these Sittings. In the case of the Australian Capital Territory and the Northern Territory, payments will be made direct to the independent schools as an addition to the present per pupil subsidies.

The estimated cost of this new measure is $l6.3m in 1969-70. Of this amount, $16m will be paid to the States. In the first full year, the comparable figures are $24. 5m and $24.1 m respectively.

Subsidies on Fertilisers

Turning to our rural industries, I now outline proposals that will continue our aim to assist them with their more pressing problems. Later, I shall outline some taxation concessions that will also assist them.

A subsidy of $6 a ton on standard superphosphate used in Australia was introduced in August 1963. Last year we decided to extend to October 1971 the operation of the authorising legislation and to increase the standard rate of subsidy to $8 a ton with effect from 14 August 1968. This year we have decided to increase the rate of subsidy still further. As from tomorrow the standard rate will be$1 2 per ton. At the new rate the subsidy is expected to cost $50m this year or $19m more than last year.

In August 1966 we introduced a subsidy on nitrogenous fertilisers, for which the authorising legislation is due to expire in October 1969. We have now decided to continue the subsidy for a further three years at an estimated cost in 1969-70 of $ 15m or $4m more than last year.

Wool Research and Promotion

To afford further assistance to the woolgrowing industry, the Government has decided to offer the industry a more generous arrangement for the financing of wool research and promotion. For three years commencing 1 July 1970, the growers’ levy would be reduced from two to one per cent and the Government would meet the balance of the expenditure required for research and promotion, provided its contribution does not exceed an average of $27m per annum. In effect, the growers’ levy would be halved and the Government’s contribution approximately doubled. The Government’s offer will have to be negotiated with the Australian Wool Industry Conference together with any changes that might be required in the areas of responsibility for the administration of wool research and promotion by virtue of the increased financial commitment assumed by the Government

Wheat Industry Stabilization Scheme

Since 1960-61 the Commonwealth has each year made payments to the wheat industry to enable returns to growers to be raised to the guaranteed price in respect of specified quantities of exported wheat. In 1968-69 the payment involved was $43m. This enabled the return to growers to be raised by more than 28 cents to $1.64 per bushel f.o.r. on 150m bushels of export wheat in respect of the 1967-68 season. The Wheat Industry Stabilization Act 1968 pro vides a guaranteed price on exports of up to 200 million bushels in respect of each of the five wheat seasons 1968-69 to 1972-73. For the first of these seasons the guaranteed price is $1.45 per bushel f.o.b. and for subsequent seasons it will be adjusted in accordance with movements in cash costs. It is expected that a wheat stabilisation payment in respect of the 1968-69 crop will be made in 1970-71. No provision will be needed for a payment this year.

Drought Bonds

The main features of the Government’s Drought Bonds scheme were outlined in a statement which I made in the House on 1 May 1969. Legislation authorising their issue will be introduced shortly, with a view to the first series of Drought Bonds being available for subscription on 1 November next.

Industrial Research and Development Grants

Grants are made by the Commonwealth to encourage additional expenditure by Australian manufacturing and mining companies on research and development. Expenditure in 1969-70 is expected to double, increasing to $10.8m from $5.3m in 1968-69.

Post Office

Well over half the item Advances for Capital Purposes comprises the provision of new capital for the Post Office, mainly to assist in financing expansion and improvement of telephone services. The provision this year for the Post Office is $229m. This compares with a provision last year of $222m and actual advances of $204.5m. The latter figure was only $1m greater than in1967-68. The increase in this year’s provision over actual advances in 1968-69 is due in substantial measure to two special circumstances; first, in 1968-69 the Post Office was able to achieve a greater improvement in its net cash operating surplus than is expected in 1969-70 and second, payments on some large equipment orders, which were expected to fall due last year, now have to be met in 1969-70 instead of last year.

The Post Office expects to be able during the year to make 290,000 telephone connections involving new lines or equipment and to hold the numbers awaiting service at about the current figure of 55,000.

Other Expenditures

The largest absolute increase in any of the main classes of expenditure is the rise of $186m in payments to or for the States. This will bring the total amount to an estimated $l,643m, an increase of 12.8%. Within this total, grants and payments of a revenue nature will increase by nearly $117m to approximately $l,274m. Payments of a capital nature will rise by $69m to close on $3 69m. In addition to, and distinct from, the payments just mentioned, the State works and housing programmes will increase by $48m to $7 5 8m. Of this amount $132m has been allocated under the Commonwealth-State Housing Agreements.

There are a number of other figures here which I feel it is not necessary, to read out. Consequently, I ask for leave to have them incorporated in Hansard.

Mr DEPUTY SPEAKER:

– There being no objection, leave is granted.

Mr McMAHON:
LP

– Departmental- running expenses are estimated to increase by $43m to nearly $443m, or 10.6% higher than last year’s expenditure. Close to $19m of this increase is attributed to higher rates of pay, including the increase in Third Division salaries granted as from 17th July 1969.

External economic aid will be increased by $13m, or 9.3%, to total more than $l50m. This figure includes $96m for assistance to Papua and New Guinea, which will be $9m, or 10.3%, greater than last year. In addition, it is estimated that Commonwealth departments and non-commercial instrumentalities will spend about $22. 6m in the Territory. If the Papua and New Guinea Development Bank needs more capital funds this year, the Government will consider assisting the Administration to make an additional contribution.

Commonwealth payments to industry will, on present estimates exceed $200m, a decrease on last year of $10.3m. As I have said, no wheat stabilisation payment is expected this year. Last year the cost was $43m. Devaluation compensation for primary industries is estimated at $29m, a reduction of $6m. Partly offsetting these decreases arc the increased subsidies on superphosphate and nitrogenous, fertilizers, and the increased grants for industrial research and development to which I referred earlier. Bounty payments for the protection of a number of manufacturing industries are estimated to increase. In the case of the shipbuilding subsidy the estimated cost is $ 16.6m, or $4m more than last year.

We propose to pay a further amount of approximately $7.2m to the Aboriginal Advancement Trust Account to meet special expenditure in 1969-70, in particular in the fields of health, education and housing. The balance of about $1.3m in the Trust Account at 30 June 1969 will be used to meet outstanding commitments under similar programmes commenced last year; expenditure in 1968-69 on these programmes was approximately $4.0m.

Of the $10m appropriated to the Aboriginal Advancement Trust Account last year, $4.7m was subsequently paid to the Commonwealth Capital Fund established under the Aboriginal Enterprises (Assistance) Act 1968. It is not expected that any substantial addition to this Fund will be required in 1969-70.

This year we are seeking an appropriation of $2. 85m for grants in support of the performing arts, an increase of $1.2m over expenditure in 1968-69. The Australian Council for the Arts, now in ils second year, has provided valuable advice to the Government. Details of the assistance to be provided in 1969-70 will be announced shortly.

I now turn to the financing of this expenditure from revenue and other sources.

page 40

REVENUE ESTIMATES, 1969-70

Another year of high and rising incomes and buoyant expenditure in all sectors of the economy is expected and we have based our revenue estimates on this expectation. Receipts from all sources except borrowing are estimated to rise to $6,954m - an increase of 13.5% on last year’s receipts. Total taxation revenue is estimated to be $6,237m, an increase of 14.7% on last year. Details of these estimates are given in Statement No. 3 attached to this Speech.

With a large increase of revenues in prospect we considered, in the overall budget strategy, whether greater expenditures than those proposed could have been financed or whether we could have given greater tax concessions than those I am about to mention.

The essence of the situation we face is that, if our revenues rise as much as expected, it will be largely because of highly expansive economic conditions. If there were, in these circumstances, greater increases in expenditure than those proposed, we would have added further to demand on resources already under some strain. It would be much the same if we reduced taxation substantially. The consequent rise in disposable incomes and spending power would increase both demand and liquidity and would inevitably give a greater stimulus to inflationary tendencies.

We have not therefore considered it prudent to give general concessions in taxation. We have, however, thought it desirable, in order to deal with special circumstances, to propose some changes in taxes and rates of charges. I shall now outline these changes.

Income Tax - Age Allowance

We propose a further liberalisation of the income tax age allowance granted to residents of Australia who are of qualifying age, that is, sixty-five years for men and sixty for women.

Under the present age allowance an aged person is exempt from tax if his or her own taxable income does not exceed $1,248 while a married aged person is exempt if the combined taxable income of husband and wife does not exceed $2,184.

For 1969-70 no tax will be payable by an aged person whose taxable income does not exceed $1,300 or by a married aged person unless the combined taxable income of husband and wife exceeds $2,262.

In order to cushion the transition from complete exemption to taxation at ordinary rates of tax, the age allowance provisions include ‘shading-in’’ arrangements to limit the amount of tax payable by an aged person with a taxable income somewhat in excess of the exemption levels. To take account of the new ‘tapering’ provisions for age pensions to which I have already referred, we propose to reduce the tax payable under these limiting provisions and to extend the ranges of income within which the limitation confers a benefit.

Convertible Notes

We propose also to amend the income tax law as it now applies to convertible securities. In 1960, the income tax law was amended to disallow the deduction of interest payable by companies on convertible securities. This action was taken because it was evident that convertible notes were being used largely as a means of avoiding taxation. In many cases, the convertible notes were essentially deferred issues of shares.

The Government recognises that convertible issues can serve legitimate business purposes. It has therefore been decided to restore deductibility of interest for income tax purposes on convertible issues but this will be made subject to conditions designed to minimise tax avoidance.

This proposal will be fully explained when amending legislation is brought in.

Capital Subscriptions to Mining and Other Companies

The Government has also decided that the present law granting tax deductions for subscriptions of capital to certain kinds of companies can, for some taxpayers, confer unjustified benefits. lt is a general principle of the lax Jaw that where a deduction for an amount of expenditure is authorised by more thar one provision only one deduction is allowed. There is under the existing law an exception to this principle, with the effect that where certain shares are sold by a share dealer, deductions granted with the general aim of facilitating the financing of mineral exploration or afforestation are disregarded in calculating the profit or loss on sale. In effect, a taxable profit on a sale of the shares is reduced through the allowance of two deductions for the cost of the shares and a deductible loss on a sale is likewise increased. In some cases, the reduction in tax liabilities can be as great as the total cost of the shares.

It is proposed to amend section 82 of the income tax law so that dealers in shares will be allowed only one deduction for capital subscribed to mining or afforestation companies. The amendment will affect moneys paid on shares after today, except where the dealer owned the shares on or before today, or became the owner after today pursuant to an application lodged, or an agreement made, by today. People who are not regarded as dealers for tax purposes will not be affected by the amendment.

Primary Producers

I return to the Government’s frequently expressed intention to assist primary producers.

At present the cost of some structural improvements made by primary producers for conserving water or fodder - such as tanks, silos and hay sheds - is deductible for income tax purposes by way of depreciation allowances over five years. The cost of other structural improvements - such as dams, underground tanks and bores - made for these purposes is deductible in full in the year in which it is incurred. It is proposed that, as to expenditure in the income year 1969-70 and subsequent years, the cost of all structural improvements of this nature will qualify for deduction in full in the year in which it is incurred.

Mr McMAHON:
LP

– I hope the next one will not leave him quite so poor.

Estate Duty

The Government has also decided that some relief should be granted from estate duty in the case of the estates of primary producers. In reaching this decision we had in mind the desirability of providing assistance to discourage the breaking-up of economic rural holdings because of the need to pay estate duty.

Relief will be granted in two ways. The existing exemption levels will,’ for primary production estates, be raised by 20%. Some additional relief from duty will be granted in respect of land and other assets normally used in primary production such as livestock and farm plant and machinery. In broad terms, an estate will qualify for these reliefs when the assets are predominantly of the kind I have mentioned and the income of the deceased person was derived over the preceding five years principally from primary production. Relief will be granted for estates of a net value of less than $250,000.

The relief will apply to estates of persons who die after the authorising legislation has been assented to.

As a complementary measure some administrative requirements of the estate duty law are to be relaxed. The necessity to lodge security in order to obtain an extension of time for payment of duty is to be eliminated and the statutory limit of two years on extensions of time is to be removed.

Air Navigation Charges

Consistent wilh the Government’s policy of narrowing the gap between airport and airway costs and revenues, we propose to increase by 10% the rates of air navigation charges payable by the air transport industry for the use of airport and airway facilities provided by the Commonwealth. The new scale will apply only to domestic flights. As for international flights, international operators have claimed that they are already meeting a relatively high proportion of costs. A study is currently being under taken of airport and airway costs and revenues and the Government will give further consideration to charges for international flights.

page 42

MONETARY LIQUIDITY

Last year, despite a domestic surplus of about $200m in the Budget, the money supply increased by SI, 169m. The rate of change in. bank customers’ accounts suggests that the turnover of funds, or velocity of circulation, also increased. As I have already said these monetary influences undoubtedly contributed to the rise of inflationary pressures.

This year we expect the Budget to produce a domestic surplus of about $500m. This would withdraw a similar amount from the money supply. Against that, receipts will exceed payments in private transactions abroad - possibly by much the same amount - and this will add an equivalent amount to the money supply. Further additions to the money supply will be made from other sources. In particular, the Reserve Bank will again add to Rural Credit advances outstanding as it finances payments on delivery of wheat and other commodities pending sale: though the net injection of liquidity from Rural Credits will be smaller than last year when a record harvest followed a year of drought

Loans and advances by the banks will again add to the money supply. Action has been taken to moderate the rate at which the banks increase their lending. Trading banks are being called upon to transfer to their Statutory Reserve Deposits an additional amount equivalent to 1% of their deposits. This will leave them with much the same ratio of liquid assets and government securities to deposits as they had a year ago. This action has been accompanied by a rise of 0.2S% in maximum trading bank fixed deposit and maximum overdraft rates of interest. A new maximum rate of 5% now applies to both fixed deposit and certificates of deposit and within this maximum the term and rate structure has been made more flexible. On the one hand, the higher interest rates will assist the trading banks to attract funds into fixed deposits or certificates of deposit and, to that extent, to compete more effectively with other operators in the money market. On the other hand, the higher overdraft rates should induce bank customers to reduce the call they make on funds borrowed from the banks.

To counter the influences which add to monetary liquidity, the Reserve Bank has been a net seller of Commonwealth securities in its open-market operations. In 1967-68, its net purchases of securities amounted to $178m. Last year it made net sales of about $78m. A new pattern of rates emerged and was reflected in the Commonwealth loan floated last month, with the yield on the long-dated securities rising from 5.4 to 6%. We have aimed at consolidating the strength of Commonwealth securities in the market.

These measures are part of a precautionary move against inflationary trends. They will not in any way inhibit the real growth of the economy. The fact is that a large volume of monetary liquidity has been carried over from the past financial year. In the interests of stability and sound growth, we must limit the amount that will be added to liquidity this year. The real problem is to keep the increase within safe bounds and to prevent it becoming excessive.

page 43

CONCLUSION

This financial year will take us over the threshold of the next decade, the 1970’s. From an economic point of view, the prospects are basically favourable. The new resources being opened up must add increasingly to output both for domestic use and for export. Our productivity has risen and will continue to rise. Migrants are pouring in and the work force is building up rapidly. We are attracting a good flow of capital from overseas. Our reserves are reasonably strong and, despite monetary and trade disturbances abroad, our exports are growing, diversifying and reaching out into still wider markets.

This provides a margin of safety. It gives us some scope and time for any adjustments needed to keep the economy on a sure and steady course ahead.

The broad promise, of future growth does not however reduce, or change essentially, the continuing problem, of economic management, that is, of keeping the national effort close to the limit of available resources but not allowing it to exceed this limit. The problem is with us this year in characteristic form. Rapidly though our supplies of labour, equipment and materials are increasing, demand is right up with them and is growing fast. There is a clear possibility that excess demand, helped by excess liquidity could upset the balance of the economy. This Budget, : in its economic aspect, together with the monetary measures taken lately, is primarily directed to minimising this risk.

But budgets are much more than instruments of economic policy. This Budget is designed to share some, of our growing wealth with the less fortunate, to provide still better educational facilities for the young, to help rural industries improve their productivity and to meet competition abroad, and to expand great developmental works in many parts of the country.

Although economic feasibility will, in the end, set limits to what can be done in any field, economic. purposes will have little meaning unless they contribute to personal and .humane values. It is the physical and intellectual progress of the community and of the individual human beings in it that ultimately counts. It will be seen that humane values are in the forefront of the purposes this Budget is designed to achieve.

I commend it to honourable members and, if 1 may again interpolate, I think it is one of the best Budgets I have known to be introduced in the 20 years that I have been in the House.

page 44

STATEMENT No. 1- BUDGET ESTIMATES, 1969-70

The Budget estimates for 1969-70, in ‘conventional’ terms, provide for:

In national accounting form, the estimates imply: an increase of 8.0 per cent in total outlays, following increases of 6.1 per cent in 1968-69 and 10.3 per cent in 1967-68. Expenditures on goods and services are estimated to increase by 1.2 per cent in 1969-70, following an increase of 7.8 per cent in 1968-69; an increase of 9.6 per cent in outlays within Australia, following increases of 7.6 per cent in 1968-69 and 8.5 per cent in 1967-68; a further reduction of 8.0 per cent in Commonwealth outlays overseas, following a reduction of 6.8 per cent in 1968-69 and an increase of 27.5 per cent in 1967-68; and an increase of 14.5 per cent in receipts on the basis of existing rates of taxation and other charges, and 14.3 per cent after taking account of the revenue measures announced in the Budget Speech. In 1968-69, receipts rose by 11 . 4 per cent and in 1967-68 by 9.6 per cent.

With the estimated reduction of $356 million in the Budget deficit to $30 million (the same under both classifications), it is estimated that there will be an increase of about $300 million in. the surplus of Commonwealth receipts over expenditures *within* Australia. {:#subdebate-38-0} #### The Economic Context The Budget for 1969-70 has been prepared in the expectation that 1969-70 will be a year of strong growth in both output and spending. The year just past, 1968-69, saw record growth of over 8.5 per cent in Gross National Product at constant prices. About 2 percentage points of this increase reflected recovery in rural industry and about 6.5 percentage points continued vigorous expansion in the nonfarm sector. Estimates of the main components of Gross National Product and Gross National Expenditure in 1968-69 are given in detail in the document 'National Income and Expenditure 1968-69' presented with the Budget papers. In current price terms, these estimates show the following main changes from 1967-68: an increase of 12.3 per cent in Gross National Product at factor cost, comprising an increase of 1 1 . 0 per cent in the gross value of non-farm output and an increase of 27.5 per cent in the gross value of farm output; an increase of 10.9 per cent in Gross National Expenditure, including increases of 6.7 percent in personal consumption, 12.7percent in private gross fixed investment, and 8.8 per cent in public expenditure on goods and services; and a decrease from $570 million in 1967-68 to $347 million in the excess of imports over exports of goods and services. Also, in 1968-69: {: type="i" start="1"} 0. the rise in money wages and in consumer prices (other than for food) became steeper; 1. liquidity and the money supply expanded faster than in earlier years; 2. a significant part - §407 million - of the increase in Gross National Product was added to farm stocks; and 3. there was, in the second half of the year, a persistent tightening in the labour market. In 1969-70, on the assumption that activity is maintained at full employment level, Gross National Product at constant prices is expected to increase by at least 6 percent, with average employment and productivity each some 3 per cent higher than in 1968-69. Although lower than the abnormally large increase of over 8.5 per cent in Gross National Product at constant prices in 1968-69. the expected rate of growth in 1969-70 is high in terms of past average experience. On the demand side, the private sector seems likely to continue to increase its spending substantially in 1969-70. With personal incomes generally increasing strongly, consumer spending seems likely to be more buoyant in 1969-70. In particular, money wages have been on a steep upgrade for some time. Spending by wage and salary earners is likely to increase strongly although, to the extent that money wages continue to rise too fast, the money and 'real' (constant price) increases in consumer spending could diverge further. Private fixed investment also seems likely to continue on its strong growth path. The State sector is expected to maintain a solid rate of expansion in its current and capital expenditures. In brief, the Budget has been framed in the context of the economy moving, and being likely to continue to move, on a strong expansionary course. {:#subdebate-38-1} #### Conventional' Budget Figures The following table sets out in 'conventional' form the Budget estimates for 1969-70 and actual receipts and expenditures in 1968-69. The estimated cost in 1969-70 and in a full year of the main expenditure proposals announced in the Budget Speech are: The main changes in estimated expenditure in 1969-70 compare as follows with actual changes in 1968-69: It is estimated that expenditure on Defence Services will decrease by $61 million, or 5.2 per cent, in 1969-70. In 1968-69, the increase of $49 million, or 4.4 per cent, in expenditure on Defence Services was a good deal smaller than it had been for some years. Over the preceding three years, expenditure on Defence Services increased by $507 million, or 83.3 per cent, the average annual increase in that period being $169 million. The estimated increase of 10.8 per cent in Payments to or for the States and in State Works and Housing Programmes reflects mainly the prospective increase in financial assistance grants in 1969-70, the large estimated increase in specific purpose grants of a capital nature and the increase in State Works and Housing Programmes agreed to at the Loan Council meeting in June. The estimated increase of 12.7 per cent in the Payment to the National Welfare Fund and Repatriation Services arises in part from the new measures announced in the Budget Speech. Further details of the 1969-70 estimates of expenditures are given in Statement No. 2. Before taking into account the proposed revenue measures announced in the Budget Speech, total Commonwealth receipts are estimated to increase by $839 million, or 13.7 per cent, in 1969-70 This increase includes $814 million which is estimated to come from increased taxation collections on the basis of existing legislation. This very high rate of increase in estimated receipts reflects assumptions made as to trends in economic activity in the year ahead, the recovery in primary producers' incomes in 1968-69, and the substantial increase in 1968-69 in incomes of companies and individuals in business, the professions, etc. The following proposed revenue measures announced in the Budget Speech are estimated to reduce revenue by a net $14 million in 1969-70 and $26 million in a full year: After taking account of the effects of these proposed changes, total Commonwealth receipts are estimated to amount to $6,954 million, which would be $825 million, or 13 . 5 per cent, more than in 1968-69. Budget Estimates in National Accounting Form The estimates in national accounting form are set out in detail in Statement No. 6 and in the Supplement to the Treasury Information Bulletin which accompanies the Budget documents. The following table contains a summary of the main Budget aggregates in national accounting form. Domestic outlays are estimated to increase more rapidly and overseas outlays to decline more rapidly than in 1968-69. The estimated increase of 8.0 per cent in total outlays compares with increases of 6.1 per cent in 1968-69 and 10.3 per cent in 1967-68. In national accounting terms, Commonwealth receipts are estimated to increase by 14.3 per cent in 1969-70, following on increases of 11 .4 per cent in 1968-69 and 9.6 per cent in 1967-68. {:#subdebate-38-2} #### The Budget Deficit The Budget deficit is estimated to decrease by $356 million to $30 million in 1969-70. In 1968-69, the deficit declined by $257 million to $385 million. In 1968-69, the net result of Commonwealth receipts and expenditures *within* Australia was a surplus of close to $200 million following a small deficit in 1967-68. The estimates imply that the surplus *within* Australia may increase by a further $300 million or thereabouts in 1969-70. The financing of the deficit in 1968-69 and prospects for financing the deficit in 1969-70 are the subject of Statement No. 4. . {: .page-start } page 48 {:#debate-39} ### STATEMENT No. 2 - ESTIMATES OF EXPENDITURES, 1969-70 Commonwealth expenditures are estimated to increase by$469,430,000, or 7. 2 percent, to $6,983,353,000 in 1969-70. The estimates for 1969-70 are compared in summary form with actual expenditures in 1967-68 and 1968-69 in the following table. Tables setting out the composition of the various items of expenditure and notes on the main variations follow. Total expenditure on Defence Services in 1969-70 is expected to decrease by a net $60,632,000, mainly because payments for some major equipment items are now tapering off or have been completed and for some projects part of the expenditure has been rephased. Expenditure on aircraft projects is expected to decline by $74,109,000, on arms, armament and equipment for the Army by 822,421,000, and on Naval ship construction by SI 0,23 1,000. These decreases will be offset by an estimated increase of 532,820,000 in pay, salaries, administrative expenses and general services for all departments in the Defence Group, including recently-announced increases in officers' pay and the salaries of officers of the Third Division of the Public Service. Provision is also made for estimated increased strengths of the Permanent Forces as follows: {:#subdebate-39-0} #### Navy Army Air Force Strengths at 30 June 1969 _ ... 16,943 46,525 22,712 Estimated strengths at 30 June 1970 _ 17,360 48,010 23,660 *Defence* The estimated increase of $4,447,000 includes the cost of additional aid to Malaysia of $1,108,000 resulting from costs associated w;th the gift of Sabre aircraft. The increase of $1,775,000 *<a* 'other' elements includes $1,202,000 for new works projects. The estimated increase of $894,000 iti salaries and administrative expenses is mainly attributable to an expected growth in civil strength from 1,348 to 1.492 in 1969-70 and to salary increases for officers of the Public Service. {:#subdebate-39-1} #### Navy The vote provides for an increase of $9,455,000 for accommodation and technical facilities (including an increase of $1,984,000 in the provision of married quarters under the Commonwealth-State Housing Agreement) and an increase of §2,365,000 for the repair and maintenance of ships and aircraft of the R.A.N. The expected decrease of $10,231,000 iri expenditure on naval construction represents the approaching completion of the current shipbuilding programme. Provision is made for the commencement of a programme of new shipbuilding projects {:#subdebate-39-2} #### Army The estimated net decrease of $7,523,000 allows for a reduction of $22,421,000 in respect of arms, armament and equipment principally because of a change in the composition of capital equipment programmes to long lead-time items and to revised requirements for replacement and maintenance items. The estimated net decline of $1,475,000 in expenditure on accommodation and technical facilities reflects a decrease in expenditure on building works of $2,200,000 which is due to the approaching completion of several major barracks projects and a decrease of $2,260,000 in advances to the States under the Commonwealth - State Housing Agreement. That reduction is partly offset by an increase of $2,075,000 in repairs and maintenance to buildings and other facilities. There will be an estimated increase of $15,989,000 for pay, salaries, administrative expenses and general services. This reflects expected increases in strengths of both Service and civilian staffs and pay and salary rises. The estimated increases in administrative expenses and general services totalling $4,487,000 include $1 ,012,000 for higher costs and numbers of rations, $999,000 for extra freight and cartage and $742,000 for increased travelling and subsistence related to increased numbers and charges. {:#subdebate-39-3} #### Air Expenditure on aircraft purchase and manufacture is expected to decrease by $73,507,000 and on accommodation and technical facilities by $6,443,000. This will be partly offset by an increase of $8,450,000 in pay, salaries, administrative expenses and general services, which mainly reflects forecast increased Service and civilian strengths and pay and salary rises. Most of the estimated decline in expenditure on accommodation and technical facilities relates to a decrease of $6,436,000 in building works mainly because of the approaching completion of major projects commenced in the Defence Programme 1964-65 - 1967-68. Expenditure in 1968-69 included the cost of acquisition ($4,450,000) of the Edinburgh Base and there will be no comparable expenditure in 1969-70. These decreases are partly offset by increased expenditure of $3,767,000 on the provision of married quarters under the Commonwealth-State Housing Agreement. {:#subdebate-39-4} #### Supply The estimated net increase in expenditure in 1969-70 of $2,053,000 results from an increase of $2,353,000 for accommodation and technical facilities which includes $1,500,000 towards the cost of relocating at St Mary's the Central Storage Depot at present located at Heffron Park, New South Wales. An additional amount of $1 ,498,000 is included for increased and revised provisions of machinery and plant at Government factories and establishments to provide expanded and/or new capacity for munitions manufacture. The principal offset of $2,318,000 represents the decline in the need for additional working capital at Government factories in 1969-70. *General Services* The principal estimated increase of $1,615,000 is for interest on Defence loans raised in the United States of America to finance purchases of defence equipment. An increase of $424,000 is provided in respect of re-establishment benefits for discharged national servicemen and the extension of similar benefits to discharged National Service personnel who .have voluntarily extended their service by up to two years. *Defence Expenditure - Overseas* Expenditure overseas in 1969-70 is estimated to be $243,000,000 against actual expenditure of $330,000,000 in 1968-69. During 1968-69, payments were continued on current aircraft projects such as Tracker and Skyhawk for the R.A.N, and the F-111C, Orion, Mirage and Macchi for the R.A.A.F., on other capital items including the Chas. F. Adams class (DDG) destroyers and the Oberon class submarines, and on the maintenance of forces overseas. The foregoing figures do not include defence expenditure in Papua and New Guinea or Defence Aid for Malaysia and Singapore. The decline in 1969-70 is due mainly to the approaching completion of some capital equipment projects. Defence expenditure overseas includes the following payments for material and equipment financed under credit arrangements with the United States of America authorised by the Loan (Defence) Acts 1966 and 1968. Repayments of principal under these loans amounted to $36,608,000 in 1968-69 and are estimated to amount to $52,000,000 in 1969-70. 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 and payments under the States Grants (Deserted Wives) Act, both of which are charged to the National Welfare Fund, contributions towards the cost of development of an integrated township at Exmouth, which are charged to Defence Services-, and expenditure on Aboriginal Advancement, which is included under Item No. II - Other Expenditures. Further details of the various payments are given .in the White Paper 'Commonwealth Payments to or for the States, 1969-70'. Commonwealth Payments to or for the States are estimated to increase by $186,056,000, or 12.8 per cent, to SI, 643,280,000 in 1969-70. General revenue grants are estimated to increase by a net $95,415,000; financial assistance grants payable under the *States Grants Act* 1965-1968, including a special payment of $15,500,000 to Western Australia in lieu of a special grant, are estimated to increase by $104,907,000; and the special grant to Tasmania is estimated to be $5,090,000 greater than in 1968-69. No provision has been made for payment of special revenue assistance in 1969-70; in 1968-69, an amount of $14,000,000 was provided to help the States meet budget difficulties. Specific purpose payments of a revenue nature are estimated to be $21,819,000 greater than in 1968-69. Estimated increases of $26,579,000 in payments to the States for education purposes and of $1,621,000 in sinking fund on State debts are partly offset by an estimated decline of $7,699,000 in natural disaster payments of a revenue nature. The increase in payments to the States for education purposes reflects the estimated cost - $16,000,000 in 1969-70 - of the new policy proposal, announced in the Budget Speech, of support for the running costs of independent schools. Specific purpose payments of a capital nature are estimated to increase by $68,821,000. This includes estimated increases of $30,334,000 in payments to the States for education, $23,000,000 in Commonwealth Aid Roads grants payable under the *Commonwealth Aid Roads Act* 1969, and $1 1,500,000 in the payment to Tasmania to assist in financing a hydro-electric scheme. It also includes S5,000,000 on account of the proposal, announced in the Budget Speech, to provide $25,000,000 over five years commencing 1969-70 for the construction of self-contained dwelling units for certain single age pensioners. Other amounts to be made available to the States for new projects in 1969-70 include an estimated $5,750,000 for the Copeton Dam (New South Wales) and $1,500,000 for the Tailem Bend to Keith pipeline (South Australia). It is estimated that the amount to be made available to South Australia to assist in financing the construction of a natural gas pipeline will be $10,000,000 less than in 1968-69, and that natural disaster payments of a capital nature will be $5,789,000 less than in 1968-69. {:#subdebate-39-5} #### Item No. 3 - State Works and Housing Programmes At its meeting in June 1969, the Loan Council approved a government borrowing programme for 1969-70 of which $758,000,000 was for State Works and Housing. The Loan Council approved borrowing' programmes of $372,000,000 for State semi-government and local authorities with programmes in excess of $300,000 in 1969-70, and $8,960,000 for Commonwealth authorities. The Loan Council also decided that no overall limit should be placed on borrowings by authorities for which the State Governments approve individual programmes of not more than $300,000 in 1969-70. The approved allocations for State Works and Housing in 1969-70 compare as follows with the actual allocations for 1968-69: State domestic. raisings. are estimated to produce $15,500,000 in 1969-70 which would leave $742,500,000 to be provided from Loan Fund to complete this year's borrowing programme for works and housing purposes. This compares with $696,638,000 in 1968-69. Details of the manner in which the State Works and Housing Programmes have been financed since 1959-60 a, e given in the White Paper 'Commonwealth Payments to or for the States, 1969-70'. The National Welfare Fund Act requires that the payment from Consolidated Revenue to the National Welfare Fund each year be equal to the actual expenditure from the Fund in that year. Expenditure from the Fund was $1,162,350,000 in 1968-69 and, after taking account of the cost of the Budget proposals, it is estimated at $1,337,430,000 in 1969-70. The measures announced in the Budget Speech are estimated to cost $75,550,000 in 1969-70 and $105,980,000 in a full year. The estimated costs of the particular proposals are as follows:_ The additional full-year cost in 1969-70 of measures introduced in 1968-69 is estimated to be $29,200,000. A further factor contributing to the increase in the estimated payment to the National Welfare Fund in 1969-70 is the occurrence of one more twelve-weekly bank payment of child endowment than in 1968-69. This is estimated to add $24,363,000 to expenditure in 1969-70. Existing and proposed rates of benefits are outlined in Statement No. 10. Expenditure on Repatriation Services is estimated to increase by $8,198,000 in 1969-70 to $292,619,000. The proposals announced in the Budget Speech are estimated to cost $13,630,000 in 1969-70 and $18,180,000 in a full year. Details of the estimated costs of the proposals are as follows: In 1968-69, there were five twelve-weekly bank payments of war and service pensions and allowances. In 1969-70, there will be only four such payments. It is estimated that, but for the occurrence of one less bank payment of these pensions and allowances, expenditure on Repatriation Services in 1969-70 would have been approximately $11,144,000 greater. *Interest - Commonwealth Inscribed Stock Act, etc.* Interest payments under the Commonwealth Inscribed Stock Act are estimated to be $4,538,000 greater in 1969-70 than in 1968-69. This increase is due mainly to the difference between the rates of interest at which the Commonwealth borrows overseas and the rates charged by the Commonwealth on advances made under the Commonwealth-State Housing Agreements. Higher interest rates offered in Australia on new securities issued by the Commonwealth, including Treasury Notes, are also expected to contribute to the increase. There are some offsetting savings resulting from the reduction of debt by the National Debt Sinking Fund and the Loan Consolidation and Investment Reserve. *Sinking Fund.* These payments represent a 4 per cent contribution on specified debt, as set out in the *National Debt Sinking Fund Act* 1966. The estimated decrease of $7,332,000 in contributions for 1969-70 reflects two factors. Net debt, on which the 4 per cent contribution is calculated, decreased by $210,000,000 in 1968-69, resulting in a decreased contribution of $8,400,000. Also, under the Act, the payment to the Sinking Fund from Consolidated Revenue is reduced by interest earned from investments of the Sinking Fund. Interest income is expected to be lower in 1969-70, and the estimated payment from Consolidated Revenue correspondingly greater. Expenditures oh the Australian Capital Territory and the Northern Territory are estimated to increase by $1,718,000 and $5,542,000, respectively. The estimated increase in expenditure in the Australian Capital Territory includes an additional provision pf $953,000 for police and other general services and $219,000 for education services. The major increases in estimated expenditure in the Northern Territory are an additional requirement of $3,143,000 for services provided by the Northern Territory Administration, $1,057,000 for the repair,' maintenance and operation of Commonwealth assets, $643,000 for education services and $675,000 for health services. The major increases in both the Australian Capital Territory and the Northern Territory reflect the additional costs associated with the provision of services to expanding communities. The figures in the foregoing table summarise clearly identifiable items in the Budget which are in the nature of economic assistance to developing countries. Details of expenditure on external economic aid, including certain items not included in the table above, are set out in Statement No. 8. The figures in this table summarise bounties, subsidies and certain other Commonwealth payments to industry. Details of these, together with information on other Commonwealth expenditures made to assist industry and assistance to industry through the taxation system, are set out in Statement No. 9. Other Expenditures comprise expenditures and estimated expenditures under annual and special appropriations from the Consolidated Revenue Fund and the Loan Fund, which are not included under other headings. The main factors giving rise to the estimated increase of 512,068,000 are: {:#subdebate-39-6} #### Education and Science *Australian National University.* Payments to the Australian National University are estimated to be $2,454,000 higher than in 1968-69. These payments are based on the level of grants recommended by the Australian Universities Commission for the last calendar year of the 1967-1969 triennium, adjusted to take account of increases in academic and other salaries in that year, and on the level of grants recommended by the Commission for the first calendar year of the 1970-1972 triennium. *Commonwealth Scholarship Schemes.* The estimated increase of $3,701,000 includes $1,112,000 for post-graduate awards, $1,932,000 for university scholarships and $499,000 for advanced education scholarships. The increase in the cost of university and advanced education scholarships reflects an increase in the number of awards to apply from 1 January 1970, as announced in the Budget Speech. *Commonwealth Scientific and Industrial Research Organization.* Of the estimated increase of $3,019,000 to be paid to the Organization in 1969-70, approximately $2,200,000 is attributable to increases in salaries and administrative expenses and to research projects previously endorsed by the Government. *Other.* Of the estimated increase of $1,162,000 in these expenditures, $777,000 relates to the Canberra College of Advanced Education. This estimate is based on the level of expenditure estimated to be required in the last six months of 1969 and on the recommendations of the Commonwealth Advisory Committee on Advanced Education as they affect the first calendar year of the 1970-1972 triennium. {:#subdebate-39-7} #### Immigration *Assisted Passage Schemes.* In 1968-69, the number of migrants assisted was about 124,000. The programme for 1969-70 is for 119,000 assisted' migrants and, as a result, payments under the assisted-passage immigration schemes are estimated to be $603,000 less in 1969-70 than in 1968-69. *Contributions to Commonwealth Hostels Limited.* Contributions to Commonwealth Hostels Limited are estimated to be $365,000 greater in 1969-70, mainly because of an expected increase in salaries, the introduction of a welfare service, and increased heating costs. These estimated increases in expenditure will be partly offset by tariff increases. {:#subdebate-39-8} #### Labour and National Service *Stevedoring Industry.* Expenditure under this heading represents the payment to the Australian Stevedoring Industry Authority of the proceeds of the stevedoring industry charge levied on the industry. This expenditure is estimated to be $1,422,000 less in 1969-70 than in 1968-69 as a result of an expected reduction in man-hours worked on the waterfront. {:#subdebate-39-9} #### Postmaster-General's *Overseas Telecommunications Commission.* In 1968-69, $600,000 was paid to the Commission in respect of the sale of Commission-owned land to the Western Australian State Government at a concessional price. No provision is made for a similar payment in 1969-70. {:#subdebate-39-10} #### Primary Industry *Wheat Research.* Wheat research is financed from the proceeds of an industry levy and Commonwealth contributions. Total payments in 1969-70 are expected to decline by $361,000, mainly because the proceeds of the levy are estimated to be less following the introduction of the quota arrangements. *Wool Promotion and Research.* Total payments are estimated to decline by $434,000. The Commonwealth contribution is estimated to be $1,116,000 less as carry-over commitments are smaller this year than last year. As, however, a larger wool clip is expected in 1969-70, the industry contribution is estimated to increase by $682,000. ' *Canned Fruits - Promotion, etc.* This expenditure is financed from the proceeds of industry levies and excise duties. Expenditure is estimated to decline by $1,695,000 in 1969-70, mainly as a result of the amendment in March 1969 of the Excise Tariff Act which provided for reductions in the level of excise payable on canned deciduous fruits. *War Service Land Settlement.* Payments to the agent States under the *States Grants (War Service Land Settlement) Act* 1952-1953 for the acquisition and development of properties and for the provision of credit facilities to soldier settlers are financed from loan moneys and amounted to $4,294,000 in 1968-69. Of the estimated payment of $4,500,000 in 1969-70, approximately $4,005,000 will be in respect of the provision of credit facilities. The estimated increase in expenditure of $206,000 In 1969-70 arises mainly from the cost of work of a developmental nature in relation to farms allotted to ex-servicemen. The table which follows compares, on a State basis, estimated expenditure in 1969-70 with actual expenditure in 1967-68 and 1968-69. In addition, administrative expenses under this scheme, to be met from annual appropriations, were $679,000 in 1968-69 and are estimated to total $760,000 in 1969-70. {:#subdebate-39-11} #### Prime Minister's *Aboriginal Advancement.* Of the $10,000,000 appropriated to the Aboriginal Advancement Trust Account in 1968-69, $4,650,000 was paid out of the Trust Account to the Commonwealth Capital Fund for Aboriginal Enterprises under the authority of the *Aboriginal Enterprises (Assistance) Act* 1968. Against the balance of $5,350,000, expenditure on approved programmes of Aboriginal Advancement amounted to about $4,000,000, of which grants to the States totalled $3,650,000. lt is not expected that any substantial supplementation of the Commonwealth Capital Fund for Aboriginal Enterprises will be required in 1969-70. An appropriation of $7, 160,000 is being sought for payment to the Aboriginal Advancement Trust Account in 1969-70. This, together with the unexpended balance remaining in the Trust Account at 30 June 1969, will provide funds for expenditure of about $8,500,000 in 1969-70 on programmes against which expenditure of $4,000,000 was actually incurred in 1968-69. *Other.* Expenditure under this heading is estimated to increase by $4,508,000 in 1969-70, the main reason being the provision of $4,000,000 for expenditure associated with the Australian pavilion at the Universal and International Exhibition to be held in Osaka, which is $2,741,000 more than expenditure in 1968-69. Provision has also been made for an increase of $1,286,000 for assistance to the arts, the greater part of the increase being in respect of the Commonwealth's support for the performing arts. {:#subdebate-39-12} #### Social Services *Homes for Aged Persons.* Expenditure under the *Aged Persons Homes Act* 1954-1967 is estimated to increase by $720,000 in 1969-70. The increase reflects provision for instalments of the two largest grants yet made to eligible organizations under the Act. {:#subdebate-39-13} #### Treasury *Superannuation.* An increase in the number of recipients of pensions under the *Superannuation Act* 1922-1968 is estimated to result in an increase of $2,290,000 in Government contributions to the Superannuation Fund. Payments in respect of former Post Office employees are estimated to increase by SI, 135,000, and payments in respect of other pensioners by $1,155,000. *Currency - Transition to Decimal Currency.* Payments associated with the transition to decimal currency are expected to decline by $701,000 as the conversion programme is virtually complete. Advances for Capital Purposes are estimated to increase by $51,129,000 in 1969-70. Comments on the main changes giving rise to this increase are set out below. *Post Office.* The increase of $24,500,000 in the provision of new capital for the Post Office arises mainly because the Post Office was able to achieve a greater improvement in its net cash operating surplus in 1968-69 than is expected in 1969-70 and because payments on some large equipment orders, which were expected to Tall due last year, now have to be met in 1969-70. *Australian Coastal Shipping Commission.* It is estimated that the advance to the Commission will increase by $5,000,000 to $14,000,000 in 1969-70. Approximately $8,000,000 of the advance is to assist in financing the purchase of two container ships and other expenditure associated with the entry of the Australian National Line into the Australia-United Kingdom and Europe trade and the Australia-United States of America trade. The remaining $6,000,000 is to provide funds for shipbuilding and terminal development for the coastal trade and the ship being constructed for operation by the Line in the Australia-Japan trade. *Snowy Mountains Hydro-electric Authority.* The estimated increase of $2,282,000 in the advance to the Snowy Mountains Hydro-electric Authority reflects an increase in the incidence of contractual payments in respect of permanent plant and major contracts. *War Service Homes.* Expenditure on War Service Homes is estimated to increase by $5,000,000 mainly on account of the full-year effect of the increase in the maximum loan from $7,000 to $8,000, which waa announced in the 1968-69 Budget and came into effect in November 1968, and an expected rise in the number of applicants for loans. *Australian National Airlines Commission* and *Qantas Airways Limited.* Advances to the Australian National Airlines Commission are estimated to decrease by $126,000 while those to Qantas Airways Limited are estimated to increase by $15,519,000. These advances are for expenditure on current aircraft-purchasing programmes. Expenditure on Other Capital Works and Services is estimated to increase by $1,930,000 to $195,449,000 in 1969-70. This change is the net result of a number of variations. {:#subdebate-39-14} #### Civil Aviation The estimated reduction of $1,733,000 in 1969-70 is attributable mainly to the lower incidence of payments in respect of equipment on long-term order. {:#subdebate-39-15} #### Education and Science *Commonwealth Scientific and Industrial Research Organization.* The estimated increase of $415,000 is mainly for increased expenditure on ancillary computer equipment for the Organization. *Other.* Included in the estimated increase of $2,1 13,000 in 1969-70 are increases of $1,260,000 for works and services in respect of the Canberra College of Advanced Education, $737,000 for construction and associated works of the Anglo-Australian optical telescope and $117,000 for residential colleges affiliated with the Australian National University. {:#subdebate-39-16} #### External Affairs Expenditure on capital works and services for the Department of External Affairs is estimated to decrease by $3,979,000 because of the completion of the Washington Chancery project. {:#subdebate-39-17} #### Interior Expenditure on capital works and services by the Department of the Interior is estimated to decrease by $7,307,000 in 1969-70. There were exceptionally large outlays in 1968-69 which are not expected to be repeated this year. These outlays included $4,700,000 for the purchase of the Cromwell Building in Melbourne and $600,000 for the acquisition of a building site in Hobart. Expenditure on Stage II of the computer complex for the Bureau of Meteorology is estimated to decrease by $836,000 as this project is near completion. {:#subdebate-39-18} #### Postmaster-General's *Broadcasting and Television.* The reduction of $526,000 in estimated expenditure is mainly the result of an estimated reduction of $861,000 in expenditure on equipment for the Radio Australia booster station at Darwin and an estimated increase of $400,000 in the Australian Broadcasting Commission's requirements for technical equipment. {:#subdebate-39-19} #### Shipping and Transport *Railways.* The estimated increase of $1,809,000 is mainly for rolling stock replacements and additions for the Central Australia and North Australia Railways to meet increasing traffic needs. Other factors contributing to this increase include the upgrading of the North Australia Railway to meet the requirements of heavy iron-ore traffic and the upgrading of the Trans-Australian Railway. {:#subdebate-39-20} #### Treasury *Bureau of Census and Statistics.* Expenditure is estimated to decrease by $1,123,000 as a result of the completion of expenditure on additional computer equipment. {:#subdebate-39-21} #### Works *Plant and Equipment.* Expenditure on plant and equipment by the Department of Works is estimated to decrease by $856,000 mainly because of a reduced workload in South Australia, particularly at Woomera, and a reduction in civil engineering projects in Papua and New Guinea. *Civil Works Programme.* Expenditure under the civil works programme is estimated to increase by $1 ,640,000 to $49,449,000 in 1969-70. The largest increase is $1,073,000 for the Department of the Interior, mainly for expenditure on the new Commonwealth Offices in Perth and for the commencement of the new Commonwealth Offices in Brisbane. Other estimated increases include $746,000 for expenditure on laboratory projects for the Commonwealth Scientific and Industrial Research Organization, $562,000 for the Department of Social Services in connection with alterations to Australia House in Sydney and for rehabilitation centres in Victoria and Western Australia, and $522,000 for new migrant hostels in New South Wales and Victoria for the Department of Immigration. Expenditure on Broadcasting and Television works is estimated to decrease by $1,064,000 because of the near-completion of the Radio Australia booster station at Darwin and of television studio works in New South Wales, Queensland and South Australia. {:#subdebate-39-22} #### Territories *Australian Capital Territory.* Of the estimated increase of $3,767,000 in expenditure on capital works and services in the Australian Capital Territory in 1969-70, $2,452,000 relates to an increased allocation for the National Capital Development Commission's 1969-70 construction programme. *Northern Territory.* The increased provision for the Northern Territory in 1969-70 is mainly in respect of higher cash requirements for work in progress under the civil works programme such as Stage 4 of the Darwin steam power station, sub-division works in Darwin and beef roads construction. It also includes provision for an increase in expenditure on new works including works for the Aboriginal education programme in 1969-70. {: .page-start } page 65 {:#debate-40} ### STATEMENT No. 3 - ESTIMATES OF RECEIPTS, 1969-70 In the absence of any changes in existing taxes and other charges, it is estimated that total receipts in 1969-70 would amount to $6,967,447,000, which would be $838,837,000, or 13.7 per cent, more than total receipts in 1968-69. After taking into account revenue proposals announced in the Budget Speech, total receipts in 1969-70 are estimated at $6,953,547,000, an increase of $824,937,000, or 13.5 per cent. In 1968-69, total receipts increased by $672,318,000, or 12.3 per cent. That increase included the effects of changes in taxation rates and other charges announced in the 1968-69 Budget, which were estimated to yield about $94,400,000 during 1968-69. The following table compares estimated receipts in 1969-70 with actual receipts in the two preceding financial years. {:#subdebate-40-0} #### Taxation Revenue Total taxation revenue in 1969-70 is estimated to be $6,236,800,000. This is an increase of $799,540,000, or 14.7 per cent over 1968-69. The main changes in estimated taxation collections are discussed in the following notes. *Customs Duty.* Collections of customs duty in 1969-70 are estimated at $395,000,000, $47,254,000 more than in 1968-69. This estimate allows for a further increase in recorded imports in 1969-70 and for some further increase in the proportion of imports dutiable at higher rates. *Excise Duty.* The estimate of excise duty collections is based on the assumption that consumer spending will continue to increase strongly in 1969-70. Excise collections are 18993/69- fi- 01 estimated to increase by §58,986,000, or 6. 5 per cent, to $960,000,000. In 1968-69, excise collections increased by $47,436,000, or 5.6 per cent. The main components of the estimate for 1969-70 are as follows: *Sales Tax.* Sales tax collections are estimated at $567,000,000 in 1969-70, an increase of $72,937,000, or 14.8 per cent. The estimate assumes that the value of sales of goods subject to sales tax will increase at a more rapid rate in 1969-70 than in 1968-69. Collections in 1969-70 will also reflect the full-year effects of the increase in the general rate of sales tax from *1H* per cent to 15 per cent announced in the 1968-69 Budget. *Income Tax - Individuals.* It is estimated that, on the basis of existing legislation, collections of income tax from individuals in 1969-70 would total $2,855,000,000, an increase of $475,534,000, or 20.0 per cent, on collections in 1968-69. {: type="a" start="a"} 0. *Pay-as-you-earn Instalment Deductions.* On the basis of existing legislation, gross pay-as-you-earn instalment deductions in 1969-70 are estimated at $2,475,000,000, or $351,143,000 more than in 1968-69. In 1968-69, average weekly earnings increased by about 7.25 per cent and average employment by more than 3 percent. Average employment in 1969-70 is assumed to be 3 per cent greater than in 1968-69. For the purpose of setting down a figure for pay-as-you-earn collections, an increase of 7 per cent has been assumed as the increase in average earnings in 1969-70 compared with 1968-69. This assumption, which takes account of the rise in average weekly earnings which has already occurred, does not imply that the trend in earnings from this point of time can be forecast with any reliability. Nor does its use imply that it is a Budget objective. Refunds of tax instalment deductions are estimated to increase by $43,432,000 so that, at existing rates of taxation, net payasyouearn collections are estimated to increase by $307,710,000 to $2,035,000,000. 1. *Other.* Collections on assessments of individuals are estimated to increase by $167,824,000 to $820,000,000 on the basis of existing legislation. This reflects the increase in incomes of primary producers in 1968-69 (about 37.5 per cent), following recovery from the drought in 1967-68, and increases in 1968-69 in incomes of other individuals subject to provisional tax. These 1968-69 incomes are subject to tax in 1969-70. The measures announced in the Budget Speech are estimated to reduce income tax collections from individuals by $13,200,000 in 1969-70 and $21,000,000 in a full year. After allowing for these changes, it is estimated that income tax collections from individuals will increase by $462,334,000 to $2,841,800,000 in 1969-70. *Income Tax - Companies.* Incomes of companies in 1968-69, which are subject to tax in 1969-70, are estimated to have increased by about 13 per cent following an increase of about 15 per cent in 1967-68. At existing rates of tax, collections of income tax from companies in 1969-70 are estimated at $1,140,000,000, an increase of $133,457,000, or 13.3 per cent. *Pay-roll Tax.* On the basis of the assumptions adopted as regards employment and average weekly earnings for the estimate of gross pay-as-you-earn collections, it is estimated that gross pay-roll tax collections will total $260,000,000 in 1969-70, an increase of $25,476,000. As pay-roll tax rebates under the export incentive scheme are estimated to increase by $8,043,000, net pay-roll tax collections are estimated to increase by $17,432,000 to $223,000,000 in 1969-70. *Estate Duty.* The estimate of estate duty collections reflects the expected growth in the value of estate duty returns available for assessment in 1969-70. On the basis of existing legislation, estate duty collections are estimated to increase by $2,274,000 to $63,000,000. As the proposals announced in the Budget Speech are estimated to reduce collections by $1,000,000 in 1969-70 and $5,300,000 in a full year, collections in 1969-70, after allowing for these proposals, are estimated at $62,000,000, an increase of $1,274,000. Other revenue is estimated to increase by $17,548,000 to $499,737,000 in 1969-70. The main variations from 1968-69 are: {:#subdebate-40-1} #### Civil Aviation *Air Navigation Charges.* It is estimated that collections from these charges will increase by $2,076,000 in 1969-70 as a result of growth in air traffic, the full-year effects of increased rates applicable from 1 January 1969 and the increase in charges for domestic traffic announced in the Budget Speech. The latter increase, which is to apply from 1 January 1970, is estimated to yield $700,000 in a full year. {:#subdebate-40-2} #### Housing *War Service Homes- Repayments of Interest and Principal.* The estimated increase in revenue of $2,072,000 largely reflects an expected rise in the discharge of outstanding advances under the scheme. {:#subdebate-40-3} #### Interior Mainly because of expected lower returns from the sale of surplus property and materials, revenue is estimated to decrease by $1,640,000 in 1969-70. {:#subdebate-40-4} #### Labour and National Service *Stevedoring Industry Charge.* Collections are estimated to decrease by $1,130,000. It is expected that a lower number of man-hours will be worked on Australian wharves during 1969-70, mainly because of the increased volume of goods being handled through container ships. {:#subdebate-40-5} #### National Development *Snowy Mountains Hydro-electric Authority - Interest.* Snowy Mountains Hydro-electric Authority interest payments to the Commonwealth are estimated to increase by $2,401,000 in 1969-70 mainly as a result of the full-year effects of capital expenditure brought to account on 1 January 1969. The Authority also expects to bring Blowering Dam expenditure to account on 1 December 1969. {:#subdebate-40-6} #### Primary Industry *War Service Land Settlement.* Revenue from War Service Land Settlement is estimated to decrease by $2,71 1 ,000 largely because of an estimated decline of $1,644,000 in repayments by settlers. In 1968-69, receipts were affected by heavy repayments in full of settlers' advances. {:#subdebate-40-7} #### Shipping and Transport *Commonwealth Railways.* The estimated increase in the net receipts of the Commonwealth Railways is $2,359,000. Gross receipts are estimated to increase by $3,048,000 because of an expected increase in traffic on the Trans-Australian Railway and increased carriage of iron-ore on the North Australia Railway. Working expenses, which are offset against gross receipts, are expected to increase by $689,000. *Other.* The estimated increase of $2,951 ,000 includes $1,487,000 of interest to be received on loans made to the Australian Coastal Shipping Commission, and an increase of $1 ,008,000 in repayments under the *Railway Agreement (Western Australia) Act* 1961. {:#subdebate-40-8} #### Treasury *Distribution of International Monetary Fund Net Income.* In October 1968, Australia received $1,052,000 as its share of part of the net income of the International Monetary Fund. This distribution of income was made by the Fund to its members who were in a net creditor' position in the year ended 30 April 1968. No receipt of income from the Fund is expected in 1969-70. *Overseas Telecommunications Commission - Repayment of Advances.* In 1968-69, the Commission repaid Treasury advances to the extent of $5,000,000; no advances are to be repaid in 1969-70. *Overseas Telecommunications Commission - Payment in the Nature of a Dividend.* It is estimated that a payment of $6,400,000 in the nature of a dividend will be received from the Commission in 1969-70 in lieu of interest payments on Treasury advances. *Post Office - Interest on Capital.* It is estimated that, as a result of the growth in the amount of capital advanced to the Post Office, interest from the Post Office will increase by $12,409,000 in 1969-70. *Off-shore Petroleum Royalties.* It is estimated that, under the off-shore petroleum legislation, $2,000,000 will be received as the Commonwealth's share of royalties on production in Bass Strait in 1969-70. *Australian Capital Territory Stamp Duties.* Stamp duties on a range of instruments and transactions within and connected with the Austraiian Capital Territory were introduced to operate from 1 July 1969, and are estimated to yield $1,200,000 in 1969-70. *Repayments of Principal- Austraiian National Airlines Commission.* Repayments by the Australian National Airlines Commission are estimated to increase by $1,334,000 in 1969-70, reflecting loans drawn in 1968-69. *Repayments of Principal- Qantas Airways Limited.* Repayments in 1969-70 by Qantas Airways Limited are estimated to decline by $1,206,000 because the repayment of its 1962- 1968 loan was completed in 1968-69. {:#subdebate-40-9} #### Works The estimated decrease of $752,000 is partly the result of estimated lower proceeds from the disposal of plant in 1969-70. In addition, accumulated profits from industrial undertakings in the Australian Capital Territory were paid into the Consolidated Revenue Fund in 1968-69; no such payments are expected to be received in 1969-70 {:#subdebate-40-10} #### Navy In 1968-69, the receipts of. the Department of the Navy included refunds of expenditure incurred in previous years on the purchase of communications equipment and armament in the United States of America; largely because no allowance for refunds has been made in 1969-70, the Budget estimate is $1,165,000 less than in 1968-69. {:#subdebate-40-11} #### Army Receipts of the Department of the Army are estimated to decline by $1,897,000 in 1969-70. These receipts were inflated in 1968-69 by a large refund from the Commissioner of Taxation. No similar refund is expected in 1969-70. {:#subdebate-40-12} #### Air Receipts in 1968-69 included a refund of payments on aircraft purchases in the United States of America amounting to $1,300,000. Largely because no allowance has been made for a similar refund in 1969-70, the estimate of receipts is $1,832,000 lower. {:#subdebate-40-13} #### Supply *Other.* Revenue under this heading is estimated to be $6,340,000 less in 1969-70 than in 1968- 69. Receipts in 1968-69 included proceeds from the transfer of Edinburgh airfield to the R.A.A.F. {:#subdebate-40-14} #### Territories *Australian Capital Territory.* An estimated increase of $2,202,000 in collections of premiums on lease sales is the main reason for the estimated increase of $4,196,000 in revenue from the Australian Capital Territory. Other estimated increases include $1,433,000 from municipal-type rates and land rents levied throughout the Territory and rents paid by tenants of Government-owned dwellings. Interest and capital repayments on advances to the Australian Capital Territory Housing Commissioner and local building societies, together with proceeds from sales of Government houses, are estimated to increase by $858,000 in 1969- 70. *Northern Territory.* The estimated increase of $1,186,000 in revenue from the Northern Territory includes an increase of $588,000 for land rent and rents paid by tenants of Administration-owned dwellings. {:#subdebate-40-15} #### Receipts of National Debt Sinking Fund Details of the estimated receipts of the National Debt Sinking Fund are shown in the following table. {:#subdebate-40-16} #### Commonwealth *Percentage Contributions - Consolidated Revenue Fund and Interest on investments.* The percentage contributions from the Consolidated Revenue Fund to the National Debt Sinking Fund and the interest income of the Sinking Fund are estimated to total 829,900,000 in 1969-70, 88,400,000 less than in 1968-69. This amount is equal to 4 per cent on net Commonwealth debt at 30 June 1969 subject to contribution. The reduction of 88,400,000 is due to a fall of $210,000,000 in 1968-69 in net debt subject to contribution. The *National Debt Sinking Fund Act* 1966-1967 provides for the contribution from the Consolidated Revenue Fund to be reduced by an amount equal to income from investments of Commonwealth balances in the Fund. This income is estimated to be $1,102,000 lower than in 1968-69 and the contribution from the Consolidated Revenue Fund to be correspondingly greater because of the sale of investments to finance redemptions. *Repayments of Loan Fund Advances for Housing.* Repayments to the Sinking Fund of housing advances to the States under the various Housing Agreement Acts increase with the growth in these advances. They are estimated to be $1,154,000 greater in 1969-70 than in 1968-69. *Other Repayments.* Other repayments to the Sinking Fund include repayments made under the Railway Agreement (Queensland) Acts 1961 and 1968, the *Loan (Emergency Wheat Storage) Act* 1955 and the *War Service Land Settlement Agreements Act* 1945. *Receipts in respect of State Debt* *Contributions by Commonwealth and States.* Contributions by the Commonwealth and the States in respect of State debt are estimated to be $6,176,000 greater in 1969-70 than in 1968-69. This increase reflects the continued growth of State debt. *Interest on Investments.* The increased interest income on investment of the States' Sinking Fund balances reflects the accumulation of these balances to meet large redemptions in July and August 1969. Net Increase in Other Balances of The Commonwealth in The Trust Fund The estimated increase U 1969-70 of $7,853,000 is attributable mainly to an expected increase in the interest on investments held by the Loan Consolidation and Investment {:#subdebate-40-17} #### Reserve {: .page-start } page 71 {:#debate-41} ### STATEMENT No. 4 - FINANCING THE DEFICIT In 1969-70, Commonwealth receipts are estimated to be less than Commonwealth expenditures by $30 million. The estimated deficit compares with deficits of $385 million in 1968-69 and $642 million in 1967-68. The following table shows how the deficits in 1967-68 and 1968-69 were financed. {:#subdebate-41-0} #### Financing Transactions, 1968-69 In 1968-69, $142 million was available from overseas sources towards the financing of the deficit Net drawings under the credit arrangements for defence purchases in the United States of America were $55 million; total drawings amounted to $91 million, and repayments to $37 million. Apart from the defence credit arrangements, gross loan raisings overseas amounted to $183 million; after allowing for redemptions and repurchases amounting to $96 million, a net amount of $88 million was available from these raisings. Borrowings overseas to finance advances to Qantas Airways Limited and the Australian National Airlines Commission for the purchase of aircraft amounted to $15 million, while repayments of borrowings of this type amounted to $27 million, exceeding the borrowings by $12 million. The proceeds of other loans overseas amounted to $169 million, exceeding redemptions and other expenditure on the reduction of debt overseas by $100 million. After providing $5 million to finance drawings in Australian currency from the International Monetary Fund, an amount of $248 million remained to be financed in Australia. Gross proceeds from loans raised in Australia (including $13 million from State domestic loan raisings) amounted to $616 million; and redemptions and other expenditure on the reduction of debt amounted to $235 million. There was also a net reduction of $68 million in the amount of Treasury Notes on issue. Thus, the net amount produced by these loan operations in Australia was $313 million. An amount of $62 million was available from other financing transactions, including drawings on balances available to the Commonwealth and amounts available in respect of coinage transactions. These transactions meant that $127 million was available to redeem Treasury Bills on issue to the Reserve Bank. In 1968-69, very large amounts of liquidity were injected into the domestic economy from overseas transactions and through Rural Credits advances. As far as the Budget was concerned, receipts in Australia, which subtract from liquidity, were some 8200 million greater than domestic expenditures, which add to liquidity. This domestic surplus, which followed a small domestic deficit in 1967-68, helped to moderate the build-up in liquidity in 1968-69. Holdings of Commonwealth securities outside the banking system increased in 1968-69 by $181 million, following an increase of $240 million in 1967-68. This also helped to absorb some of the increase in liquidity arising from other sources. With redemption of $127 million of Treasury Bills on issue to the Reserve Bank and the net sale of $67 million of other Commonwealth securities by the Reserve Bank, there was little net change in holdings of Commonwealth securities by the banking system in 1968-69. In 1967-68, holdings of securities by the banking system increased by $291 million. The following table shows changes in holdings of Commonwealth securities redeemable in Australia in 1967-68 and in 1968-69. {:#subdebate-41-1} #### Prospects for 1969-70 In 1969-70, the Commonwealth's deficit is estimated to be $30 million. Drawings under the credit arrangements for purchases of defence equipment in the United States of America are expected to be $51 million while repayments are expected to be $52 million. Maturing securities of other overseas loans, which will have to be redeemed in 1969-70, and other payments to reduce indebtedness overseas may amount to about $200 million as compared with $96 million in 1968-69. It is not possible to make a reliable estimate of the amount that might be raised by new borrowings abroad. In view, however, of the present state of international money markets, it is unlikely that it will be possible to raise in 1969-70 as much as the record amount of $183 million obtained in 1968-69. There may, therefore, be net repayments overseas in 1969-70, in contrast to the net borrowings of $142 million in 1968-69. On that basis, the amount to be financed in Australia would be greater than the estimated deficit of $30 million. Net loan proceeds and the change in the Treasury Note issue in Australia cannot be estimated in. advance with any degree of assurance. Nor is it possible to predict what changes will occur in holdings of Commonwealth securities by the public, on the one hand, and by the banking system, on the other. These will reflect monetary and other developments during the course of the year. It is relevant, however, that at the beginning of 1969-70 the value of maturing securities held in non-official hands amounted to about $486 million, whereas the corresponding figure at the commencement of 1968-69 was $278 million. This suggests that redemptions could be substantially greater in 1969-70 than in 1968-69. In the cash and conversion loan in July, new cash proceeds were only slightly greater than redemptions of maturing securities. The economy remains highly liquid as a result of the build-up in liquidity in 1968-69. Further additions to liquidity in the private sector, both from overseas transactions and from net additions to Rural Credits advances during the year, are expected. Against this, with the reduction in the Budget deficit in 1969-70, there will be an increase in the Commonwealth's domestic surplus (the excess of the Commonwealth's domestic receipts over its domestic expenditures). On present estimates, the increase in the domestic surplus will be about $300 million. This will help to offset the effects of factors, including bank lending, likely to add to domestic liquidity during the year. How holdings of Commonwealth securities by the non-bank public may change is not predictable; any increase in such holdings would also operate to subtract from liquidity in the domestic economy but any decrease would add to liquidity. The overall trends in liquidity during the year will depend on many factors, in addition to the Budget and the Commonwealth's debt operations, which affect the monetary situation. On balance, however, it seems likely that any increase in the money supply this year will be smaller than last year. {: .page-start } page 74 {:#debate-42} ### STATEMENT No. 5- BUDGET RESULT, 1968-69 {: .page-start } page 74 {:#debate-43} ### SUMMARY In 1968-69, the Commonwealth Budget deficit was $385 million. This was $161 million less than the Budget estimate. Expenditures, receipts and the deficit in 1968-69 compare as follows with the Budget estimates: {: .page-start } page 74 {:#debate-44} ### EXPENDITURES The differences between actual expenditures in 1968-69 and the Budget estimates for that year are summarised in the following table. The main variations from the Budget estimates were as follows: *Defence Services.* Expenditure on Defence Services was $52 million less than the Budget estimate. Expenditure on the purchase and manufacture of aircraft was $43 million less than estimated as a result of savings on Orion aircraft and rephasing of payments on FI 1 1C aircraft. In addition, there was a shortfall of $15 million in expenditure on equipment and stores for the R.A.A.F. attributable to delays in delivery and in ordering. Defence Aid for Malaysia and Singapore was $3 million less than estimated and, because of reduced activity, there was a shortfall of $2 million in expenditure on the British/Australian Joint Project. Expenditure on pay and allowances of members of the Forces and on other salaries and administrative expenses was $10 million greater than estimated. *Payments to or for the States.* In total, these payments were a net $9 million less than the Budget estimate. There were, however, some sizable variations in a number of items. Payments of general revenue grants were $28 million greater than the Budget estimate. Financial assistance grants were $14 million greater, mainly because average wages for the year ended March 1969 were higher than had been estimated at the time of the Budget. In addition, special revenue assistance totalling $14 million, for which no allowance was made in the Budget, was paid to the States to assist them in meeting budget difficulties is 1968-69. Specific purpose payments of a revenue nature were about $3 million greater than the Budget estimate, mainly because natural disaster relief payments were greater than had been estimated. There was a net shortfall of $40 million in expenditure on specific purpose payments of a capital nature. Assistance to Tasmania for a hydro-electric scheme was $11 million less than the Budget estimate, capital grants to the States for universities $7 million less, the amounts provided for assistance to teachers colleges $4 million less, and payments for railway projects $4 million less. Advances to South Australia to assist in the financing of the construction of a natural gas pipeline were $4 million less than estimated, mainly because of the use of alternative sources of finance for the project. Payments in respect of the Ord River Irrigation Scheme were $3 million greater than the Budget estimate. *National Welfare Fund.* The payment to the National Welfare Fund was $2 million greater than the Budget estimate. Expenditure on pharmaceutical benefits (including benefits for pensioners) was $8 million greater, reflecting an increase in the number of prescriptions issued. The largest shortfall was $6 million in expenditure on age and invalid pensions, largely the result of a smaller-than-estimated increase in the number of pensioners. *Departmental Running Expenses.* Departmental Running Expenses were $1 6 million greater than the Budget estimate, largely as a result of the decision of the Arbitration Commission in the National Wage Case and other increases in wage and salary awards made after the Budget was presented. Increases in staff numbers and in general administrative costs also contributed to the increase. *External Economic Aid (including Papua and New Guinea).* Expenditure on externa) economic aid was $6 million less than the Budget estimate. Shortfalls included $6 million in payments to the International Development Association, $2 million in expenditures under the Colombo Plan, most of which related to Indonesia, and $1 million in expenditure on the Indus Waters Scheme. Payments to the Asian Development Bank were $4 million greater than estimated. *Commonwealth Payments to Industry.* Commonwealth Payments to Industry were $5 million less than the Budget estimate. Payments of phosphate fertilizers bounty and nitrogenous fertilizers subsidy were, respectively, $5 million and $3 million less than the Budget estimate. An allowance of $1 million was made in the Budget for the marginal dairy farm reconstruction scheme, but no expenditure was incurred in 1968-69. Payments of raw cotton bounty and net shipbuilding subsidy payments were $3 million and $2 million, respectively, greater than estimated. *Other Expenditures.* Expenditures under this heading were $1 1 million greater than the Budget estimate. Expenditure on assisted-passage immigration schemes exceeded the Budget estimate by $5 million because of a greater-than-estimated intake of assisted migrants in 1968-69. Payments to the Stevedoring Industry Authority and expenditure on wool promotion and research were each $2 million greater than had been estimated. *Advances for Capital Purposes.* In total, these payments fell short of the Budget estimate by $27 million. The advance to the Post Office was $18 million less because of operating economies and reduced commitments due to the deferment of payment for some large equipment orders. Advances to Qantas Airways Limited and to the Australian National Airlines Commission were $6 million and $3 million, respectively, less than had been estimated. {: .page-start } page 76 {:#debate-45} ### RECEIPTS The main differences between actual receipts in 1968-69 and the Budget estimates for the year are shown in the following table. The main variations from the Budget estimates were: *Customs Duty.* Collections of customs duty exceeded the Budget estimate by $18 million because the proportion of imports subject to comparatively high rates of duty was larger than had been expected at the time of the Budget. *Excise Duty.* Excise duty collections were $1 million greater than estimated. Although the increase in clearances of beer, tobacco products and diesel fuel was greater, the increase in clearances of motor spirit was smaller than had been estimated. *Income Tax- Individuals- Pay-as-you-earn.* Net collections of P.A.Y.E. instalment deductions exceeded the Budget estimate by about $19 million. Gross collections were $45 million greater, mainly because the rate of increase in average earnings was greater than the rate assumed for purposes of the Budget estimate of P.A.Y.E. collections, but refunds of P.A.Y.E. collections were $27 million greater than estimated. The latter appears to have been the product of failure by employers to adjust tax instalment deductions from 1 October 1967 to take account of the increases in dependants' allowances introduced in the 1967-68 Budget, and of a larger-than-expected increase in the average size of claims for other concessional deductions in 1968-69. *- Income Tax - Individuals - Collections on Assessments.* Collections on assessments of individuals fell short of the estimate by $17 million. Incomes earned by primary producers in 1967-^8- which were taxable in 1968-69- declined more than had been estimated and concessional deductions from 1967-68 incomes were greater than had been estimated. *Income Tax - Companies.* Company income tax collections in 1968-69 exceeded the Budget estimate by $37 million, mainly because company income in 1967-68 - which was taxable in 1968-69 - increased at a faster rate than was estimated in the Budget. *Pay-roll Tax.* Increases during 1968-69 in employment and in average earnings were greater than had been assumed for the purpose of the Budget estimate, with the result that gross pay-roll tax collections in 1968-69 were $8 million more than the Budget estimate. As rebates of pay-roll tax under the export incentive scheme were $1 million less than the Budget estimate, net pay-roll tax collections exceeded the estimate by $9 million. *Other Revenue.* Other Revenue exceeded the Budget estimate by $26 million. Revenue from the Defence departments was $7 million greater than the estimate, receipts from the Australian Capital Territory $5 million greater, mainly on account of higher-than-estimated premiums on lease sales, and revenue from the Department of the Interior was $3 million greater. A number of other items exceeded the Budget estimate by relatively small amounts. {: .page-start } page 77 {:#debate-46} ### FINANCING THE DEFICIT The deficit of $385 million in 1968-69 was financed as follows: The following are explanations of the financing transactions: *Credit Arrangements for Defence Purchases in the United States of America.* In 1965 and 1966, arrangements were made for the financing on extended payment terms of defence equipment in the United States of America. These arrangements were authorised by the *Loan (Defence) Act* 1966 and by the *Loan (Defence) Act* 1968. In 1968-69, finance amounting to $91 million was obtained under these arrangements. Repayments amounted to $37 million. *Other Overseas Borrowings.* Three public cash loans raised overseas in 1968-69 - one in Switzerland for Sw Fr60 million and two in Germany totalling DM300 millionyielded $79 million. In addition, two private loans were raised in Germany yielding $67 million. Drawings on aircraft loans amounted to $15 million and proceeds of $22 million were received from an Export-Import Bank loan. Securities were repurchased to the value of $13 million in London and $18 million in New York. The only overseas loan which matured in 1968-69 was a Swiss loan, raised in 1953, for Sw Fr60 million, which was paid off at a cost of nearly $13 million. Repayments of $24 million were also made on borrowings from the International Bank for Reconstruction and Development and $1 million was repaid on borrowings from the Netherlands and Canada. Repayments on aircraft loans amounted to $27 million, so that net other overseas borrowings amounted to $88 million. *Funds Provided for I.M.F. Drawings in Australian Currency.* An amount of $5 million was provided in 1968-69 to finance drawings of Australian currency from the International Monetary Fund. The Budget estimates made no provision for the transactions. *Loan Raisings in Australia.* Four Commonwealth public cash loans were raised in Australia in 1968-69. After excluding loan proceeds received before 30 June 1968, but including receipts in 1968-69 from outstanding instalments and advance subscriptions received up to 30 June 1969, proceeds from public cash loans in the year were $529 million. Cash proceeds of $73 million from the sale of Special Bonds during the year, and proceeds of $13 million from State domestic raisings, brought total borrowing proceeds to $616 million during 1968-69. Of the $548 million securities maturing in Australia (other than Special Bonds) which were offered for conversion in 1968-69, securities amounting to $150 million were redeemed. In addition, redemptions of Special Bonds of all Series amounted to $57 million. Other redemptions, market repurchases and contractual repayments in Australia amounted to $28 million. Total redemptions and repurchases in Australia were $235 million, so that net loan raisings in Australia in 1968-69 were $381 million. *Net Change in Treasury Notes on Issue.* There was a net decrease of $68 million in Treasury Notes on issue during 1968-69. At 30 June 1969, Treasury Notes on issue amounted to $205,419,000. *Other Financing Transactions.* In 1968-69, an amount of $62 million was available from these sources. The largest item was an amount of $51 million in respect of coinage transactions, principally on account of the sale overseas of silver recovered from withdrawn coin. *Residual Financing.* As the amount available from the above-mentioned financing transactions exceeded the deficit by $127 million, this amount was applied to redeem Treasury Bills on issue to the Reserve Bank. Treasury Bills on issue, at 30 June 1969 amounted to $14 million. {: .page-start } page 79 {:#debate-47} ### STATEMENT No. 6- BUDGET ESTIMATES IN NATIONAL ACCOUNTS FORM The presentation of receipts and outlay in national accounting form facilitates the analysis of relationships between the Budget and the economy as a whole. The following table summarizes in this form the actual outcome in 1968-69 and the prospective outcome for 1969-70. A more detailed table appears on page 42(1). {: .page-start } page 79 {:#debate-48} ### RECEIPTS AND OUTLAY OF COMMONWEALTH BUDGET The estimated increase of $526 million in total outlay in 1969-70 is $151 million greater than the actual increase of $375 million in 1968-69. In percentage terms the estimates imply an increase of 8.0 per cent this year, compared with an actual increase of 6.1 per cent in 1968-69. Total receipts are estimated to increase by $881 million or 14.3 percent in 1969-70 compared with an increase of $632 million or 11.4 per cent in 1968-69. The effects on the economy of particular classes of outlays and receipts, within these totals, differ significantly one from another. The more important distinctions for purposes of assessing the implications of the Commonwealth's transactions for demand and incomes within Australia and for the balance of payments are considered in the following sections. *Payments in Australia and overseas* On the outlay side of the Budget there is an important distinction between payments made within Australia and payments made overseas. The immediate effects of overseas outlays are on the balance of payments^); such outlays must therefore be deducted from total outlay as a step in the process of assessing the impact of the Budget on the domestic economy in the year immediately ahead. This is done in the following table: The table shows that the greater increase in total outlay this year is attributable to the trend in the domestic component. Following a decrease of $44 million in 1968-69, overseas outlays are estimated to decrease by a further $48 million in the current year.(2) After deducting overseas outlay the estimated increase in domestic outlay is $574 million compared with an actual increase of $419 million in 1968-69. This represents an estimated increase of 9.6 per cent this year, compared with an actual increase of 7.6 per cent in 1968-69. Although the increase in Budget outlays within Australia is estimated to be considerably greater in 1969-70 than in 1968-69, it is again substantially smaller than the concurrent increase in receipts. The implications of the domestic surplus for liquidity conditions are discussed in Statement No. 4. *Composition of domestic outlay* Within the domestic component of outlay there is a further basic distinction to be made between expenditure on goods and services, and transfers and advances from the Budget. Expenditure on goods and services adds *directly* to demand within the economy (gross national expenditure), while the impact on demand of transfers and advances depends on their effects on the spending of the recipients.(3) The following table compares, for each main component of domestic outlay, the estimated increase in 1969-70 with the actual increase in 1968-69. (') Such payments do not add to domestic incomes and the demand for locally-produced goods and services. Payments within Australia may add *indirectly* to overseas rather than Australian incomes, because orders met by local suppliers may include an import content. Although it is not possible to make reliable estimates of the import content of Commonwealth expenditure within Australia, the proportion would not be large, and it may be assumed that it is unlikely to change markedly between one year and the next. By contrast, direct payments overseas by the Commonwealth may fluctuate widely between one year and another. (*) The main overseas components are shown separately in Table 2 on page 9 of the Supplement to the Treasury Information Bulletin, entitled 'National Accounting Estimates of Public Authority Receipts and Expenditure', being published concurrently wilh the Budget. (') Whether payments from the Commonwealth Budget are themselves a source of demand for domestic resources, or add to demand indirectly by transferring purchasing power to other public authorities or thi private sector, the initial impact on expenditure of Budget outlays can be expected to induce further increases which are financed out or the incomes earned in meeting the initial change in demand. As the *relative* sizes of the total increase in demand in two successive years would depend largely on the relative sizes of the initial increases which supported them, these 'multiplier' effects are not considered explicitly in the discussion which follows. The estimated percentage increase in domestic expenditure on goods and services is substantially less than in 1968-69. This is true also of each of the main components distinguished in the table - war and defence, other current expenditure and capital expenditure. A considerably larger increase than in 1968-69 is expected in domestic transfer payments a.:d net advances. As noted above, the impact of these payments on demand and incomes depends on the effects on the spending of the recipients. Grants and advances to the States are estimated to rise by 11 .4 per cent in 1969-70, compared with 5.3 per cent in 1968-69. The comparison is affected to some extent by sugar industry assistance amounting to $24 million in 1967-68; apart from this item, the increase in payments to the States was 6.6 per cent in 1968-69. The much larger rise in these payments in 1969-70 will increase the funds available to finance the expenditures of the States and their authorities, which are predominantly expenditures on goods and services. Cash benefits to persons are estimated to increase by 13 .2 per cent in 1969-70 compared with 8.7 per cent in 1968-69. For the purpose of judging the influence of such payments on *rates* of income or expenditure *within* a year, these increases should be adjusted to remove the effects of variations in the incidence of pay-days and to allow for the 'full-year* effects of changes in rates of benefit!.1). After these adjustments, the estimated increase in cash benefits in 1969-70 is 12.5 per cent compared with 9.9 per cent in 1968-69. These payments would largely be spent by the recipients on goods and services. The larger increase in the advance to the Post Office is attributable in part to a smaller prospective increase in its operating surplus in 1969-70. To this extent, the figures in the table cannot be taken as an indication of the trend in expenditure by the Post Office on goods and services(2). (') A table showing how this adjustment is derived appears on page 10 or the Supplement to the Treasury Information Bulletin being published concurrently with the Budget. (') The capital expenditure of the Tost Office is included with that of other authorities in the non-budget sub-sector. *See* Table 7 ot the Supplement to the Treasury Information Bulletin being published concurrently with the Budget, {:#subdebate-48-0} #### Composition of Receipts On the receipts side of the Budget, there are also differences in the significance which different classes of receipts may have for prospective trends in the economy. The distinction drawn on the outlay side between transactions within Australia and transactions overseas does not have the same practical importance here. With relatively few exceptions, the budget receipts are derived from within Australia. Another distinction is between those receipts which will emerge as by-products of evolving trends in incomes and spending in the economy and those which will not be closely related to these trends but will be, as it were, superimposed on them. The former, being the result of prospective trends in economic activities, cannot be regarded as an independent factor influencing those trends(1). The latter can be regarded as a source of influence on those trends. This distinction is not, in practice, an easy one to make. For the most part, gross collections of P.A.Y.E. instalment deductions, indirect taxes and the income of public enterprises, at existing rates and charges, fall within the former class. The other class is most clearly exemplified by new revenue measures which involve changes in rates of taxation or in other charges. The position as regards taxation collections from companies and individuals subject to provisional tax is somewhat ambiguous; as noted below, this depends on the spending and saving habits of various classes of taxpayers. As in most years, the greater part of the increase in receipts in 1969-70 is expected to be induced by the prospective growth in expenditure and incomes in the economy. On the basis of existing legislation, gross collections of P.A.Y.E. instalment deductions, indirect taxes and the income of public enterprises are estimated to increase in 1969-70 by $553 million or 13.3 per cent. In passing, it might be noted that revenue estimates may sometimes reflect prospective trends in some particular areas of activity which are not the most desirable from the point of view of economic balance and reasonable price stability but which cannot, in practice, be corrected fully or quickly enough by fiscal or monetary means. An example relevant to the revenue estimates for 1969-70 is the very large increase which has been assumed in average earnings. Should average earnings rise less than assumed, taxation revenue would be less than estimated and the budget deficit would be greater(2). It would not follow, however, that the Budget objective of maintaining an environment conducive to balanced economic growth would be adversely affected by such a development; on the contrary, such a result would be more likely to serve the broad economic purposes to which budget policy is directed. Mainly because of the substantial increase which occurred in 1968-69 in the incomes of companies and of persons subject to provisional tax (especially primary producers), the increase in receipts not closely related to future trends in economic activity will be exceptionally large in 1969-70(3). On the basis of existing legislation, taxation collections from companies and individuals subject to provisional tax are estimated to increase by $307 million, or 18 per cent. As noted above, the effect of changes in these tax payments on the spending of the taxpayers in the year of payment cannot be assessed or predicted with any precision. It depends on many factors, including the extent to which the taxpayers concerned have made taxation provisions out of the previous year's income and the availability of funds for (') The prevailing structure of taxation does, of course, play a part in determining the total change in money income or expenditure which develops from a given initial change- in the same way, for example, as physical laws play a part in determining the increase in speed achieved by a car under given conditions. The retarding forces of friction and air resistance build up as the speed of a car increases; but being themselves a result of the increase in speed, these forces cannot be regarded as an independent influence. A decrease in the retardation attributable to air resistance would not be the *cause* of an increase in speed because it can only occur as a *result* of a decrease in speed; and vice versa. (*) The deficit would not be greater to the full extent of the shortfall in receipts, because some components of expenditure - for example, financial assistance grants to the States- could also be lower than estimated if average earnings g> rose more slowly than assumed. (*) This increase consists mainly of the movements in receipts of certain taxes which are related to incomes in the year prior to the collection of the tax, but includes also the changes in some minor hems of receipts. *See* August 1968 Supplement to the Treasury Information Bulletin entitled 'National Accounting Estimates of Public Authority Receipts and Expenditure', pages 18 and 19. expenditure in the year of payment. With respect to 1969-70, it is unlikely that a large proportion of these particular receipts would operate to offset the expansionary impact of budget outlays but there would be some elements of these receipts which would operate in this direction. The taxation measures announced in the Budget Speech are estimated to *reduce* receipts by $21 million in a full year. By contrast, the revenue measures in the 1968-69 Budget were estimated to *add* $108 million to total receipts in a full year. The minor taxation concessions proposed for 1969-70 will, of course, have expansionary effects. {:#subdebate-48-1} #### Review The implications of Budget transactions, in terms of their initial impact on trends in expenditure and income in the economy, depend not on *total* outlays and receipts, but primarily on the change in domestic outlays, and on that part of the change in receipts which is not a mere *result* of prospective movements in the economy. The following considerations are therefore relevant to a comparison of the 1969-70 Budget with that of 1968-69: {: type="a" start="a"} 0. The estimated increase of 7 . 3 per cent in domestic expenditure on goods and services is substantially less than the increase of 10.0 per cent in 1968-69; 1. The increase in transfer payments and net advances within Australia is estimated at 10.4 per cent in 1969-70 compared with 6.7 per cent in 1968-69. Though attributable in part to particular factors which should be set aside in assessing the impact of the Budget on demand and incomes, the much larger increase in transfer payments and net advances will have an expansionary impact on the rate of growth in expenditure on goods and services in 1969-70; 2. The divergent changes in rates of taxation in the 1968-69 and 1969-70 Budgets would also operate to make the initial impact of the 1969-70 Budget more expansionary than that of its predecessor; 3. Against this, some elements of the exceptionally large increase in receipts which are largely independent of prospective trends in the economy should have an influence in the other direction - both directly through their effect on the expenditure of the taxpayers concerned and indirectly through their effects on liquidity conditions; 4. Although the outlays and receipts of the Budget have an important influence on trends in the economy in the year ahead, the likely economic effects of a Budget can be assessed only in the context of all of the more important influences operating at the time in the economy as a whole. {: .page-start } page 85 {:#debate-49} ### STATEMENT No. 7- COMMONWEALTH BUDGET TRANSACTIONS SINCE 1959-60 Tables 1 and 2 on pages 48 and 49 show Commonwealth expenditures and receipts and financing transactions since 1959-60 in 'conventional' terms. Subject to the qualifications outlined later in this Statement, the figures are broadly consistent with the figures for 1968-69 and the estimates for 1969-70 set out in Statements No. 1 to 5. Table 3 on pages 50 and 51 shows figures for each year since 1959-60 in national accounting form. In this form, transfers between different parts of the Commonwealth's accounts are eliminated so that the figures shown relate to the transactions which occur between the Commonwealth Government and the rest of the economy or overseas. These transactions are classified into economically significant categories, corresponding 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. The figures contained in this table are comparable with those set out in Statement No. 6. Notes on the composition of the figures are set out later in this Statement. Over the period 1959-60 to 1968-69, Commonwealth expenditures rose by 115 per cent. Within this increase, there was an increase of 199 per cent in expenditures on defence services while other expenditures rose by 103 per cent Total receipts and total taxation revenue were each 119 per cent greater in 1968-69 than in 1959-60. The largest single increase was in net pay-as-you-earn collections from wage and salary income which increased by 216 per cent over this period. Collections from this source rose as a proportion of total receipts from 19.3 per cent in 1959-60 to 28.0 per cent in 1968-69. Over the period, the size of the deficit varied considerably. In 1960-61, it amounted to $32 million; in 1967-68 it reached $642 million. In 1969-70, it is estimated to be $30 million. The financial year 1968-69 saw the highest level of net proceeds of borrowings overseas available towards financing of the deficit. $142 million. Net proceeds of loans raised in Australia and of Treasury Notes were highest in 1962-63 when they exceeded $500 million. Commonwealth Budget outlays rose from 22.0 per cent of Gross National Product in 1959-60 to 25.6 per cent in 1967-68 and then declined slightly to 24.2 per cent in 1968-69. This implies that there was a relative increase over this period in the quantum of transactions passing through the Commonwealth Budget as compared with the growth in the value of goods and services produced in Australia. At the same time, it has to be recognised that a large part of Commonwealth outlays consists of transfer payments, mainly payments of pensions, subsidies, etc., to persons, and grants and advances to the States and to Commonwealth authorities outside the Budget. This is illustrated by the comparison in the following table of outlays in total and as a percentage of Gross National Product in 1959-60 and 1968-69. The table of Commonwealth receipts in national accounting terms shows a reduction in the proportion of Commonwealth receipts obtained from indirect taxes, which made up about 40 per cent of receipts in 1959-60 and 32 per cent in 1968-69. This decrease was almost precisely offset by an increase in the proportion of Commonwealth receipts obtained from pay-as-you-earn instalment deductions. The composition of receipts in 1959-60 and 1968-69 is shown in the following table. {: .page-start } page 87 {:#debate-50} ### NOTES ON TABLES 1 AND 2: FIGURES IN 'CONVENTIONAL' TERMS In the Statements attached to the 1968-69 Budget Speech, the presentation of the Budget figures was altered. Some new classifications of expenditures were introduced and an identical concept of the Budget deficit was used in both the national accounting and the conventional' presentations of the Budget figures. Budget figures for the years 1966-67 and 1967-68 were also set out in this revised form. Tables 1 and 2 below set out similarly revised figures back to 1959-60. Numerous changes have been made in the financial accounting arrangements of the Commonwealth Government since 1959-60. The figures in the tables have been adjusted where possible to produce the greatest practicable degree of consistency, but it has not been possible to remove all inconsistencies. The more important inconsistencies that remain are: Other inconsistencies remaining do not involve substantial sums and are unlikely to affect significantly the comparability of the figures. {:#subdebate-50-0} #### Expenditures and Receipts The figures for expenditures in Table 1 exclude redemptions of savings certificates and Treasury Bills, etc., as well as redemptions of other public debt of the Commonwealth. They also exclude some transfers made to trust accounts such as transfers made to the Loan Consolidation and Investment Reserve. As a number of new classifications of expenditures have been introduced, most of the figures included in these tables differ from those which appeared in the Budget documents for earlier years. The following notes explain the larger adjustments which have been made to the figures of expenditures and receipts previously published: {: type="a" start="a"} 0. the figures for the years 1959-60 and 1960-61 have been adjusted to include the so-called 'self-balancing items' (mainly taxes and charges on commodities, the proceeds of which are appropriated for expenditure for specific purposes) which were not included as receipts and expenditures in those years; 1. the figures for the years 1959-60 to 1967-68 have been adjusted because of the new accounting arrangements for the Post Office. Post Office revenue, capital expenditure and operating expenditures are no longer shown under separate headings but, instead, a single payment representing the net funds provided from the Consolidated Revenue Fund has been included under the heading Advances for Capital Purposes. The new Post Office accounting arrangements also result in changes to the figures for Other Expenditures and Other Revenue; 2. operating expenditures of the other Business Undertakings, the railways and broadcasting and television services, are no longer shown separately. They have been offset against revenue in order to show the net receipts from these business undertakings; 3. the figures shown against State Works and Housing Programmes are in gross form and include expenditure from the proceeds of State domestic loan raisings. Details of these works and housing programmes in each year are set out in Table No. 42 of the White Paper 'Commonwealth Payments to or for the States, 1969-70'; te) The receipts heading 'Net Increase in Other Balances' used in the Budget documents for the years prior to 1968-69 has been dissected to distinguish between transactions which are in the nature of financing items and those which should be regarded as being in the nature of normal receipts and expenditures of the Commonwealth. The latter are included under the receipts heading 'Net Increase in Other Balances of the Commonwealth in the Trust Fund'. {:#subdebate-50-1} #### Financing Transactions The following notes explain the composition of the main headings in Table 2 which summarises the Commonwealth's financing transactions: {: type="a" start="a"} 0. the item 'Credit Arrangements for Defence Purchases in the United States of America' comprises drawings under these credit arrangements, which are in the nature of borrowings, and repayments of these credits from Consolidated Revenue Fund, which are in the nature of redemptions; 1. in the item 'Other Overseas Loan Proceeds', the figures of loan proceeds are the actual cash proceeds from loans, etc., credited to Loan Fund in each year including loans raised on behalf of Qantas Airways Limited and the Australian National Airlines Commission to finance aircraft purchases. Overseas 'refinancing' operations are treated as adding to both loan proceeds and redemptions where they involve receipts into Loan Fund and outlays from Loan Fund; 2. the figures of loan proceeds in Australia include the actual cash proceeds of loans, etc., credited to Loan Fund in each year *plus* amounts raised through State domestic loan raisings. They include the gross proceeds derived from the issue of Special Bonds. Amounts subscribed by the Commonwealth to special loans have, however, been excluded; 3. the redemption items, both 'Overseas' and 'Australia', consist of outlays incurred in reducing the amount of funded debt outstanding (that is, public debt other than temporary borrowings by way of Treasury Bills and Treasury Notes and drawings under the credit arrangements for the purchase of defence equipment in the United States of America). They include all outlays on redemptions, repurchases and repayments from the National Debt Sinking Fund and all outlays on redemptions, etc., from Loan Fund, from the Consolidated Revenue Fund (including repayments of loans raised on behalf of Qantas Airways Limited and the Australian National Airlines Commission) and from the Canadian and Swiss Loan Trust Accounts; 4. 'Other Financing Transactions' includes funds obtained from coinage and bullion transactions, amounts borrowed by Commonwealth trust accounts, net amounts available from Commonwealth trust account transactions in securities, and amounts available from moneys held in trust, etc.; 5. 'Residual Financing' items include net direct borrowing from the Reserve Bank through the issue of Treasury Bills or other securities and the use of cash balances held with the Bank. In the table, the figures show the net change in Treasury Bills on issue after 'funding' operations under which other securities were substituted for Treasury Bills on issue. The securities issued in substitution for Treasury Bills are shown under the heading 'Net Issue of Other Securities to the Reserve Bank'. In 1964-65, 'funding' operations amounted to $100,000,000 and in 1966-67 they were $80,000,000. In addition, in 1966-67, $75,000,000 was borrowed from the Reserve Bank through the issue of Commonwealth securities to the Bank. {: .page-start } page 89 {:#debate-51} ### NOTES ON TABLE 3: FIGURES IN NATIONAL ACCOUNTING TERMS {:#subdebate-51-0} #### Outlay *Net expenditure on goods and services.* This heading covers direct purchases of domestic output and imports, and includes wages and salaries of government employees and pay and allowances of defence forces. Any recoupments of such expenditures from other sectors of the economy or overseas are netted off. Current and capital expenditures are shown separately, and each is further classified by function. In accordance with national accounting conventions, all equipment purchased for defence purposes is classified as current expenditure. *Transfer payments.* Current payments to other parts of the economy or overseas, other than payments for goods or services supplied, are listed in their various forms under this heading. *Net advances.* Loans, advances and additional capital made available by the Commonwealth are shown in the respective items under this heading. Repayments of loans and advances are deducted to arrive at the net figures. {:#subdebate-51-1} #### Receipts *Taxation.* This heading includes, in addition to the larger items listed under the item Taxation' in Table 1, some minor indirect taxes included in 'Other Revenue' in that table. Small amounts of expenditure are offset against receipts. *Interest, rent and dividends.* Interest on loans to the private sector is not included in this item, but is treated as financial enterprises income and included in the next item. *Gross income of public enterprises.* This item represents gross income, *less* operating expenses, of enterprises which operate within the Budget, lt includes interest received on advances to the private sector, which is treated as financial enterprises income. *Net sales of existing assets.* The principal components of this item are sales of land, houses and other buildings, *less* acquisitions of sites and existing buildings. {:#subdebate-51-2} #### Deficit This item is the difference between total outlay and total receipts. It consists of net sales of Commonwealth securities other than to Commonwealth Government trust funds, *less* net purchases of other investments by Commonwealth Government trust funds, *less* the net increase in cash, *less* funds provided for the International Monetary Fund, *plus* minor changes in other liabilities. {: .page-start } page 94 {:#debate-52} ### STATEMENT No. 8- EXTERNAL ECONOMIC AID The official economic assistance financed through the Commonwealth Budget which Australia provides to developing countries, including Papua and New Guinea, is estimated to total $1 62,389,000 in 1 969-70. This is $1 1 ,738,000, or 7 . 8 per cent, greater than expenditure in 1968-69. Details are set out in the following table: The totals shown in this table differ from those quoted in Statement No. 2 - Estimates of Expenditures, 1969-70, because of the inclusion of the estimates of direct expenditure of an economic nature which various Commonwealth Departments incur in Papua and New Guinea from other votes in the Budget. No allowance has been made in this table for the large subventions which the Commonwealth and State Governments make each year towards financing various educational institutions in Australia which are attended by several thousands of private and officiallysponsored students from other countries. Moreover, the figures do not allow for the fact that part of Australia's contributions to the regular budgets of certain international organizations not listed in the table is used to finance aid projects in developing countries. Nor do the figures include defence aid to Malaysia and Singapore, which is estimated to total $7,852,000 in 1969-70, compared with $6,243,000 in 1968-69. Various expenditures of a military nature incurred in Papua and New Guinea also help indirectly to promote economic development. Some brief comments on the more important items shown in the above table follow. *International Development Association.* Australia has pledged a total of $57,125,000 ($US63,980,000) to IDA since its inception. This sum comprises: - an initial capital subscription of $US20, 180,000, payable over the five year period, 1960-1964; - a contribution of $US19,800,000 towards the first replenishment of the Association's resources over the triennium 1965-1967; and - an offer by the Government earlier this year voluntarily to contribute $US24 million to IDA over the next three years in anticipation of the coming into effect of the international agreement governing the second replenishment of IDA's resources. This agreement was negotiated early in 1968 and was originally intended to relate to the period 1968-1970 but, in the event, it did not come into effect until 23 July 1969. Contributions to EDA are initially made available in the form of non-negotiable, noninterestbearing promissory notes which are cashed as and when the funds are required by IDA. Actual cash payments to IDA up to 30 June 1969 totalled $29,933,000. Because of the delay in implementing the second replenishment agreement, the calls made by IDA on its member countries in 1968-69 were lower than usual. Australia was called upon to make cash payments of only $2,020,000 to IDA in that year, compared with $7,134,000 in the previous year. In 1969-70, cash payments to IDA are estimated to total $5,510,000. *Asian Development Bank.* Australia agreed to subscribe $75,893,000 ($US85 million) to the capital stock of the Asian Development Bank, which has been set up in Manila to promote the economic growth of developing countries in the ECAFE region by providing loans, on both commercial and concessional terms, and technical assistance to these countries. Australia's subscription is the fourth largest after those of the United States and Japan (each $US200 million) and India ($US93 million). One-half is to remain at call as security for any borrowings which the Bank might make on international capital, markets to supplement its subscribed capital. The balance is payable in five annual instalments, half in convertible currency and half in domestic currency. Use of the domestic currency portion is confined to the procurement of goods and services in Australia. The amount of $3,795,000 provided in the Budget represents the fourth annual instalment of the convertible currency portion of Australia's subscription. The corresponding domestic currency payment will be made in the form of a non-negotiable, non-interest-bearing promissory note which will be cashed as and when the Bank requires funds to purchase goods and services in Australia. Steps were taken in 1968-69 to encash one of these promissory notes. Apart from enabling the Bank to meet expenses associated with the Annual Meeting of its Board of Governors in Sydney last April, this action will help the Bank to increase the overall return which it obtains on its investments in Australia. As similar action is not envisaged in 1969-70, the payment to the Bank will be $3,794,000 less than last year. *Other Multilateral Programmes.* The estimates provide for increases in Australia's contributions to various multilateral aid schemes. The main increase relates to the UN Development Programme, to which Australia will contribute $US2 million in 1970, compared with $US1,451,000 in 1969. Australia's contribution to the UN High Commissioner's Programmes for Refugees will be increased by 30 per cent to $175,000 in 1969-70. Voluntary contributions of meteorological equipment totalling $40,000 will be made to developing countries in Asia in 1969-70 in connection with the World Weather Watch mounted by the World Meteorological Organization. The number of Australian experts participating in surveys and studies organized by the Asian Industrial Development Council to promote greater economic co-operation between countries in the ECAFE region is expected to increase markedly in 1969-70. *Colombo Plan.* This is by far Australia's largest bilateral aid programme. It covers a wide range of activities, including the training of numerous overseas students and officials in many different subjects in educational institutions, government services and private industry in Australia as well as the assignment of Australian experts in various fields to work and teach in developing countries overseas. At the present time, it also embraces the provision of heavy machinery and equipment for large construction projects (for example, highways, bridges , dams and town water supplies) undertaken in collaboration with foreign governments. In addition, it includes the installation of radio telecommunication systems, assistance in the rehabilitation of telephone and railway networks, and gifts of such diverse items as trucks, buses, landrovers. irrigation and farm equipment, railway wagons and sleepers, dredges, pumps, hospital and broadcasting equipment, wool, bakery equipment, and lathes and teaching aids for vocational training institutes. Various other commodities and manufactured goods have been given to developing countries under the Colombo Plan in the past. Further details of the present programme are given in various official publications by the Department of External Affairs. Since 1967-68, special emergency assistance has been provided to Indonesia under the Colombo Plan to help that country to stabilise and rehabilitate its economy. Most of this assistance has been used to finance what are, in effect, commercial exports to Indonesia of predominantly Australian-made goods on the 'Bonus Export' (B.E.) list which that country has drawn up to reflect its most pressing requirements. As such, it has served to provide general financial support to Indonesia's budgetary and balance of payments position. In 1968-69, this B.E. aid was supplemented with government-to-government gifts of flour, fertilizer, railway equipment and other commodities. The total amount of aid to be provided to Indonesia in 1969-70 is $15 million, compared with expenditure of $11,500,000 in 1968-69. This will be financed from various votes under the Colombo Plan and from the provision for Australia's food aid commitment under the International Grains Arrangement. Thus, it is envisaged that gifts of flour worth $4 million f.o.b. will be made to Indonesia in 1969-70. The comparable figure for 1968-69 was $3,541,000. The total provision for the Colombo Plan in 1969-70, at $23,500,000, is $4,683,000, or 25 per cent, greater than expenditure in 1968-69. Of this increase, $3,041,000 relates to aid to Indonesia. The estimates provide for a substantial increase in the number of training awards to overseas students and officials to study in Australia in 1969-70. *International Grains Arrangement - Food Aid Convention.* Provision has been made in the Budget to meet Australia's commitment under the International Grains Arrangement to provide 225,000 metric tons of wheat or flour equivalent as food aid to developing countries in 1969-70. The estimate is slightly below actual expenditure in 1968-69 because certain expenses incurred last year on freight and insurance costs associated with a shipment of wheat will be recouped in 1969-70. Countries which received gifts of wheat or flour from Australia in 1968-69 were India, Pakistan, Ceylon, Afghanistan, Korea, Nigeria, Fiji and, as previously mentioned, Indonesia. The bulk of the food aid to be provided in 1969-70 is again expected to go to traditional recipients of aid from Australia in the Asian and Pacific regions. *Indus Waters Scheme.* Australia has undertaken to contribute a total of $23,269,000 to the Indus Basin Development Fund to help finance the construction of dams, link canals and barrages on various tributaries of the Indus River designed to divide the waters between India and Pakistan in an equitable manner. Total expenditures for this purpose to 30 June 1969 amounted to $16,366,000. It is expected that the World Bank, which is responsible for administering this scheme, will call up $733,000 of Australia's outstanding commitment in 1969-70, compared with $2,137,000 in 1968-69. *Other Bilateral Programmes.* The estimates for all other bilateral aid items, with two exceptions, are greater than expenditures in 1968-69, in some cases significantly so. The estimates for the relatively new South Pacific Aid Programme and the Special Commonwealth African Assistance Plan, for example, are both more than 20 per cent greater. The two exceptions are the Foreign Exchange Operations Fund in Laos, to which Australia made a supplementary contribution in 1968 greater than the amount by which its pledge for 1969 has been increased, and the contribution that Australia made to the appeal which the International Red Cross organized on behalf of refugees in Nigeria last year. Provision has been made in the Budget for two new items: an initial contribution of $13,500 by Australia towards the Food and Fertilizer Technology Centre to be established in Taipei under the auspices of the Asian and Pacific Council, and expenditure of up to $100,000 in 1969-70 on the establishment of a new aid scheme designed to enlist the services of selected universities in Australia in helping similar institutions in Malaysia, Singapore and Indonesia to tackle the twin problems of food production and population control confronting those countries. *Papua and New Guinea.* Provision has been made for a grant of $96 million to the Administration of Papua and New Guinea in 1969-70. This represents an increase of $9,006,000, or more than 10 per cent, on last year, and is designed to assist the continued economic and social development of the Territory in accordance with the overall economic development plan which has been drawn up in the light of the recommendations of general survey missions from the World Bank. Direct expenditures in Papua and New Guinea by various Commonwealth Departments are expected to decline this year. Growth in Australia's Aid As the following table reveals, Australia has provided nearly $1,300 million in official economic assistance to developing countries, including Papua and New Guinea, since the end of World War II. The Budget allows for a further $162 million to be provided in 1969-70. These figures do not include defence aid, official assistance provided from extra-budgetary sources, indirect educational subsidies to overseas students, or Australia's contributions to the budgets of certain international organizations which finance aid projects in developing countries as part of their regular activities. By the end of the current financial year, Australia will have provided considerably more than $500 million in official aid to developing countries apart from Papua and New Guinea. Although the annual rate of increase in aid expenditures slowed down in 1968-69, largely for reasons over which Australia had no control, aid expenditures have on the whole increased at a much faster rate than total government spending and National Income over the past decade. The fastest rate of increase has occurred in Australia's bilateral aid programmes, which are concentrated upon developing countries in the Asian and Pacific regions. {:#subdebate-52-0} #### International Aid Comparisons Because of conceptual and statistical difficulties, international comparisons of aid efforts by different countries are subject to reservations or qualifications of one kind or another. Nevertheless, the Development Assistance Committee (DAC) of the Organization for Economic Co-operation and Development regularly publishes data on the aid performances of individual member countries which are sometimes used for comparative purposes. Thus, for example, the DAC publishes information on the total flows of financial resources from its members to developing countries each year; these statistics include not only official grants and loans but also private capital flows which comprise both direct and portfolio investments and commercial and trade credits of more than twelve months' duration. It is very doubtful whether such disparate items can be aggregated in any meaningful sense. Nevertheless, all these items are included in the present definition of the 'aid' volume target of one per cent of Gross National Product to which developed countries have been asked to subscribe in international circles. At the same time, the target specifically allows for 'the special position of those countries which are net importers of capital*, such as Australia. In view of the shortcomings in these total flow figures as a measure of aid effort and burden-sharing, the DAC also publishes data on official flows only. These figures are subject to some reservations in that they include loans extended on commercial terms and for purposes other than aid. For example, net purchases by central monetary authorities of bonds issued by institutions like the World Bank are included. Moreover, these statistics fail to allow fully for the difference between grants and loans inasmuch as interest receipts are not deducted in calculating net flows. Further refinements to these statistics are still being made, and the DAC now distinguishes between 'official development assistance' and other official flows. The data for official development assistance provide a more suitable basis for comparing the aid efforts of other donor countries with that of Australia, although the problem of equating loans with grants still remains. On this basis, according to the DAC, Australia ranked among the first three countries in the world in 1968. Preliminary figures for individual donor countries showing their net official development assistance to developing countries in 1968 expressed as percentages of National Income and Gross National Product are set out in the following table: For purposes of comparison with Australia, which provides all of its official aid by way of grants, the data on which the above calculations have been based should be adjusted to take account of the interest payments received by donor countries which provide official aid in loan form. However, the additional information required to enable comparisons to be made on this basis is not yet available. {: .page-start } page 100 {:#debate-53} ### STATEMENT No.9- COMMONWEALTH ASSISTANCE TO INDUSTRY Assistance to Australian industry is provided through the Budget by way of bounties, subsidies and other payments, and by way of contributions to promotion and research. In addition, services and facilities are provided by the Commonwealth for which no charge is made or for which charges fall well short of covering the costs incurred. A large part of the current expenditure of the Commonwealth Scientific and Industrial Research Organization, for which it is estimated $37 million will be provided from Consolidated Revenue in 1969-70, is on activities undertaken for the benefit of Australian industry. Commonwealth Departments providing assistance in the form of services and facilities include Primary Industry, Trade and Industry (including the Australian Tourist Commission), National Development (Bureau of Mineral Resources, and Forestry and Timber Bureau), Civil Aviation and Labour and National Service. A number of the specific purpose grants to the States also assist primary industries - for instance, payments for beef cattle roads, brigalow lands development, water resources investigations, softwood forestry, and so on. In addition, a very considerable and rapidly increasing amount of assistance is being provided through the Budget by way of special taxation concessions which, as they result in a reduction of Commonwealth revenues and a corresponding increase in the funds available to the recipients, are as much a call on the Budget as direct payments which add to expenditures. Assistance of this type is mainly provided by way of income tax concessions which permit firms and individuals to make deductions from their incomes for taxation purposes beyond those normally permitted under the income tax law. In total, the Commonwealth assistance specified under the following three headings, which does not include all the forms of assistance referred to above, amounted to $440 million in 1968-69. {: .page-start } page 100 {:#debate-54} ### COMMONWEALTH PAYMENTS TO INDUSTRY The following table sets out estimates of Commonwealth payments to (or on behalf of) industry in 1969-70 included under the heading 'Commonwealth Payments to Industry', Item No. 10 in Statement No. 2. These payments are estimated to amount to $201,621,000 in 1969-70 which compares with payments of about $80,000,000 five years ago (1964-65) and about $40,000,000 ten years ago (1959-60). The following are comments on the main changes in the estimates for 1969-70. {:#subdebate-54-0} #### Rural Industries *Raw Cotton Bounty.* The estimated reduction of $1,020,000 in bounty payments on raw cotton results chiefly from an amendment made in 1969 to the Raw Cotton Bounty Act. This amendment reduced the ceiling on total bounty payments from $4,000,000 for 1969 to $3,000,000 for 1970. In addition, payments in 1968-69 were accelerated slightly as, during that year, the bounty became payable on a production rather than a sale basis. *Wheat Industry Stabilization.* It is not expected that there will be a wheat stabilization payment in 1969-70 as the 1968-69 season's crop, for which the stabilization payment would normally be made in 1969-70, is unlikely to be fully sold before 30 June 1970. *Devaluation Compensation.* Payments to be made to rural industries in 1969-70 in respect of reduced returns in Australian currency arising from the devaluation of sterling and other currencies in 1967 are estimated to be $29,000,000, $6,000,000 less than in 1968-69. The main reason for this reduction is that no payments in respect of forward exchange losses incurred at the time of devaluation will be made in 1969-70. *Phosphate Fertilizers Bounty.* As a result of a proposed increase from $8 to $12 per ton in the standard rate of bounty and an expected increase in sales, it is estimated that expenditure on the bounty in 1969-70 will increase by $18,735,000 to $50,400,000. *Nitrogenous Fertilizers Subsidy.* With the proposed extension of the subsidy, expenditure is estimated at $15,000,000 in 1969-70, an increase of $3,956,000 on expenditure in 1968-69. *Petroleum Products- All States and Northern Territory.* The subsidy scheme is designed to reduce the prices of certain petroleum products in country areas. The increase of $2,936,000 expected in 1969-70 reflects a realignment of subsidy rates with current distribution costs and an expected increase in consumption. *Marginal Dairy Farm Reconstruction Scheme.* Provision has been made for the expenditure of $1,000,000 in 1969-70. . {:#subdebate-54-1} #### Manufacturing Industries *Shipbuilding Subsidy.* Ships are purchased by the Commonwealth and sold at prices of up to one-third below their cost. The expected increase of $5,063,000 in expenditure in 1969-70 is attributable to increased shipbuilding activity. Receipts are also estimated to increase in 1969-70, though not to the same extent as expenditure, mainly because receipts in 1968-69 included a higher-than-normal incidence of progress payments by purchasers of ships. The net subsidy is estimated to increase by $4,025,000. *Book Bounty.* As an interim measure of assistance, pending an inquiry and report by the Tariff Board, a bounty will be paid to the manufacturer on ali books of Australian production to the extent of 25 per cent of the invoiced price, as from 1 June 1969. It is estimated that payments of this bounty will amount to $800,000 in 1969-70. *Sulphate of Ammonia Bounty.* There are two reasons for the increase of $780,000 in expected expenditure in 1969-70. Payments in 1968-69 covered sales for a nine-months period only, whereas subsidy payments in 1969-70 will cover sales in a 15-months period, and price reductions by manufacturers are expected to lead to increased sales. *Sulphuric Acid Bounty.* Expenditure in 1969-70 is expected to be $208,000 lower than in 1968-69 because of reduced acid production from indigenous sulphur-bearing materials. *Industrial Research and Development.* The increase of $5,500,000 in estimated expenditure on industrial research and development grants in 1969-70 is expected to result mainly from an increase in eligible expenditure by companies. {:#subdebate-54-2} #### Mining Industries *Pyrites Bounty.* Because of the continued high price of imported sulphur, no payments have been made under the Pyrites Bounty Act since the quarter ended 30 June 1966. The 1968-69 expenditure of $385,000 was a special payment made on the recommendation of the Tariff Board. *Petroleum Search Subsidy.* The estimated increase of $1,803,000 is expected to result from revised administrative procedures accelerating subsidy payments. {: .page-start } page 103 {:#debate-55} ### COMMONWEALTH CONTRIBUTIONS TO PROMOTION AND RESEARCH In addition to its direct support of the Commonwealth Scientific and Industrial Research Organization, the main contributions made by the Commonwealth to promotion and research (which are included in Items No. 7 and 1 1 in Statement No. 2) are shown below. The table sets out estimates of expenditure in 1969-70 and actual expenditure in 1967-68 and 1968-69. {: .page-start } page 103 {:#debate-56} ### COMMONWEALTH ASSISTANCE TO INDUSTRY THROUGH THE TAXATION SYSTEM The amount of revenue forgone in 1968-69 through the main concessions in the income tax field is estimated at no less than $177,000,000. The latest estimates for particular concessions which contribute to this total are given below. In addition to the concessions in the income tax law, there are numerous concessions in the sales tax field in the form of special exemptions to assist particular industries. In the case of the pay-roll tax, there is the export rebate scheme, which involved a cost to revenue of $29,000,000 in 1968-69 and is estimated to cost $37,000,000 in 1969-70. The relevant concessions in the income tax field have been grouped in three broad categories, namely: A those which allow the deduction of larger amounts than are authorized under the general provisions of the law; B those which allow certain taxpayers to deduct the cost of items of plant over shorter periods than is the case for the general run of taxpayers; and The main provisions in each of these categories, and the estimated amounts of revenue forgone in 1968-69 are: In the light of the rapid expansion that is occurring and is in prospect in the mining and petroleum exploration and production industries, it seems certain that there will be increases in the cost of the various income tax concessions which these industries enjoy. In particular, as the income from production of Australian petroleum grows, there will be an increasing cost to revenue of the special allowances permitted for petroleum-producing enterprises. These allowances effectively free from tax income from the sale of Australian petroleum and hs products until the capital expenditure incurred in finding and recovering the petroleum and not, in effect, transferred for deduction against shareholders' income by reason of Section 77a, has been recouped out of the mining profits. Dividends paid out of that tax-free income are exempt in the hands pf shareholders of the mining companies. In the 1969-70 Budget, it is proposed that: {: .page-start } page 106 {:#debate-57} ### STATEMENT No. 10- SOCIAL WELFARE AND REPATRIATION EXPENDITURE Commonwealth expenditures in the fields of social welfare and repatriation are brought together in the following table which shows actual expenditures in 1968-69, and estimated expenditures in 1969-70 including the cost of measures announced in the Budget Speech. In addition to expenditures contained in Item No. 4 - Payment to National Welfare Fund, and Item No. 5 - Repatriation Services, in Statement No. 2, this table includes certain expenditures contained in other Items in that Statement. Details of the individual components of these broad headings are given below. {:#subdebate-57-0} #### Social Services Expenditure under this heading comprises amounts charged to the National Welfare Fund and other Social Services expenditures provided for by annual appropriations or by separate legislation. Details of the expenditures charged to the National Welfare Fund are contained in Item No. 4, Statement No. 2. The totals of these expenditures are repeated in the following table which also gives particulars of the other Social Services expenditures. {:#subdebate-57-1} #### National Health Services Certain expenditures on National Health Services are met from the National Welfare Fund. Other expenditures are not charged to the Fund but are provided for by annual appropriations or by separate legislation. Item No. 4, Statement No. 2 provides details of those expenditures for National Health Services charged to the National Welfare Fund. The following table shows the totals of the National Welfare Fund expenditures on National Health Services and particulars of other National Health Services items not charged to the Fund. Repatriation Services Details *of* expenditures on Repatriation Services are given in Item No. 5, Statement No. 2. Housing Benefits Item No. 4, Statement No. 2 gives details of expenditure on Housing Benefits charged to the National Welfare Fund. The following table shows the composition of total expenditure on Housing Benefits. As announced in the Budget Speech, non-repayable grants of $25 million over five years, beginning in 1969-70, will be offered to the States for the purpose of providing self-contained dwelling units at reasonable rentals for single age pensioners, or service pensioners receiving pension on grounds of age, with little or no means apart from pension. The necessary legislation will be introduced during the Budget Sittings of Parliament. {: type="a" start="a"} 0. Supplementary assistance at a maximum rate of $2.00 per week is payable, subject to a means test, to single age and invalid pensioners, and to married pensioners (where the spouse is not a pensioner) and to widow pensioners who pay rent. 1. Wife's allowance is payable, subject to the means test, to a non-pensioner wife if the pensioner is permanently incapacitated for work or is blind or has a child. 2. A child is treated for pension purposes as being under 16 years until he attains 21 years if he is a full-time student and dependent on the pensioner. (if) A guardian's allowance of S4.00 a week is payable to single age and invalid pensioners and to single persons receiving sheltered employment allowances if they have the custody, care and control of a child or children. Under a proposal announced in the Budget Speech, the allowance will be increased to $6.00 a week where there is a child under 6 years or an invalid child requiring full-time care. 3. Child endowment for the fourth and subsequent children under 16 years of age in a family increases by 25 cents per week for each child so that the rate payable is S1.75 per week for the fourth child, S2.00 for the fifth child and so on. 4. Class B Widow's pension may also be payable to certain widows between 45 and 50 years of age. 5. Class C Widow's pension is generally payable for not more than 26 weeks immediately after the husband's death. {: type="A" start="A"} 0. Where a person enrolled in the Pensioner Medical Service meets the funeral costs of another person enrolled in the Service, the maximum funeral benefit is $40.00. A funeral benefit of up to $20.00 is payable to other persons who meet the funeral costs of a deceased age or invalid pensioner who was enrolled in the Pensioner Medical Service at the time of death. 6. Disabled persons may be given rehabilitation treatment, followed where necessary by vocational training. During the period of rehabilitation treatment, patients receive the appropriate pension or benefit, and while receiving vocational training they are paid a rehabilitation allowance. In addition a training allowance and, where appropriate, a living away from home allowance, are also payable, free of means test. Free vocational training, with associated allowances, may also be available to Class A and Class B widow pensioners. 7. Under a proposal announced in the Budget Speech, a subsidy of $5.00 a week will be payable in respect of a person 80 years or more who receives approved personal care and who resides in hostel-type accommodation in an aged persons' home eligible under the Aged Persons Homes Act. {: type="a" start="a"} 0. As announced in the Budget Speech, it is proposed that health insurance benefits equal to standard fund and Commonwealth benefits be provided without cost to the individuals covered by the scheme. The arrangements, which will be introduced in the first half of 1970, will apply to family groups of at least two units, excepting those of pensionable ages, where the family income is $39 a week or less, unemployment and sickness beneficiaries and migrants for a period of two months after arrival in Australia. {: type="1" start="4"} 0. Except tor a charge of S0.S0 per prescription which is payable by patients other than persons enrolled in the Pensioner Medical Service, and their dependants, the Commonwealth meets the cost of a wide range of drugs supplied on a doctor's prescription to any person in the community. 1. The Commonwealth also meets the cost of a wide range of drugs supplied on a doctor's prescription to persons enrolled in the Pensioner Medical Service and their dependants. 2. The Commonwealth provides a benefit for services set out in the Commonwealth Medical Benefits Schedule for medical treatment given to members of approved medical insurance organizations and the dependants of those members. 3. The Commonwealth meets the cost of general practitioner medical services for persons enrolled in the Pensioner Medical Service and their dependants. (/) The Commonwealth Acoustic Laboratories provide a hearing aid service to persons enrolled in the Pensioner Medical Service and their dependants with defective hearing who are able to benefit from a hearing aid. Aids are supplied on loan for a nominal hiring charge of $10.00. This charge includes repairs and maintenance to the aid during the lifetime of the recipient. 4. Tuberculosis allowances are payable, subject to a means test on income, to persons suffering from tuberculosis. {: type="A" start="A"} 0. The Commonwealth reimburses the States the cost of providing free to every school child under the age of thirteen years tip to one-third of a pint of milk on each school day. Also, the Commonwealth meets half the cost of administrative expenses and special equipment connected with the scheme. (0 This item includes the cost of district health laboratory services, the free supply of certain prophylactic materials and biological products (e.g. poliomyelitis vaccine), the supply and maintenance of hearing aids for children, subsidies to various voluntary organizations conducting home nursing services that are assisted by State or local Governments, the supply of artificially produced radio-active isotopes to private medical practitioners and hospitals for medical treatment purposes and for the processing at the Commonwealth Serum Laboratories of blood collected by the Australian Red Cross Society Blood Transfusion Service. HOUSING BENEFITS Commonwealth and State Housing Agreement 1945 Under the 1945 Commonwealth and State Housing Agreement, the Commonwealth, subject to a State's observing the provisions of the Agreement, meets three-fifths of any net losses, including rental rebates granted by the State under the Agreement, incurred in a year. Home Savings Grant Act 1964-1967 The *Home Savings Grant Act* 1964-1967 authorizes the payment to an eligible person of a Commonwealth grant of $1 for every $3 of acceptable savings for a home accumulated over a period of at least three years. The maximum grant payable for a home is $500. {: type="a" start="a"} 0. Special rate pension (commonly referred to as the T.P.I. pension) is granted where an ex-serviceman is, because of incapacity accepted as due to war service, totally and permanently incapacitated - that is, to such an extent as to be precluded from earning other than a negligible percentage of a living wage - or has been blinded as a result of war service. Where a serviceman is only temporarily totally incapacitated, special rate pension is payable only for the period for which he is so incapacitated. It may also be granted under certain conditions to an ex-serviceman who is suffering from pulmonary tuberculosis. 1. Intermediate rate pension is payable where an ex-serviceman, because of the severity of his war- caused disabilities, can work only part time or intermittently and therefore is unable to earn a living wage. 2. General rate pension is payable to an ex-serviceman whose war-caused disabilities do not prevent him from working, although they may reduce his earning capacity. Pension from 10 per cent to 100 per cent of the maximum general rate is payable according to the degree of incapacity as assessed by a Repatriation Board, the Repatriation Commission or an Assessment Appeal Tribunal. An additional pension (but not so that the total pension exceeds the rate of special pension) is payable for certain disabilities - mainly in respect of amputations. The amount of additional pension payable varies with the severity of the amputation. 3. A 'Special Compensation Allowance' is payable to certain general rate pensioners with assessed incapacity ranging from 75 per cent to 100 per cent. 4. Pension is payable to the widow of an ex-serviceman whose death has been accepted as due to bis war service or who has died from causes not due to war service but was receiving, at the time of his death, the special rate of war pension or the rate payable to double amputees. Domestic allowance is also payable to a war widow if she has a dependent child or children under 16 years, or is SO years of age or over, or is permanently unemployable or has a child over 16 years who is undertaking education or training approved by the Department and who, in the opinion of the Department, is not receiving an adequate living wage. {: type="a" start="f"} 0. War orphan's pension is paid for the children of an ex-serviceman whose death occurred in circumstances similar to those mentioned in *(e)* above and continues until they attain 16 years of age. 1. An allowance for an attendant is payable to an ex-serviceman who owing to war service has: >Higher Rate - two arms amputated; or been blinded and also afflicted with total loss of speech or total deafness. > >Lower Rate- twolegs and one arm amputated or two legs amputated above the knees; or been blinded or deemed by the Repatriation Commission to be in need of an, attendant. > >Children of ex-servicemen are eligible under the Soldiers' Children Education Scheme where the ex-serviceman: > >died as a result of a disability accepted as due to war service; or > >is receiving a special rate pension; or > >died from causes not due to war service but was receiving, at the time of his death, the special rate pension or the rate payable to double amputees; or > >is blinded as a result of war service; or > >is suffering from pulmonary tuberculosis and is receiving a pension at the special rate and who is likely to remain in receipt of such pension for a period of three years. > >An allowance for recreation transport, at the rates shown, may be payable to certain classes of seriously disabled ex-servicemen, the rate of allowance depending on the degree of loss of locomotion. > >A motor vehicle may be issued by way of gift to certain classes of seriously disabled ex-servicemen and an allowance, at the rate shown, may be payable towards the upkeep of the vehicle. > >Service pensions, which are broadly the equivalent of the age and invalid pensions payable to civilians, are payable, subject to means test, to an ex-serviceman who: > >is suffering from pulmonary tuberculosis; or . has served in a theatre of war (or in the case of a woman, served abroad or embarked for service abroad) and has attained if a man, the age of 60 years, if a woman, 55 years; or is permanently unemployable. > >Where a service pension is granted to an ex-serviceman on the grounds that he is permanently unemployable or suffering from pulmonary tuberculosis, or if there is an eligible child, service pension may also be paid to his wife and the first four eligible children. > >Where the serviceman's wife is receiving a social service pension, a tuberculosis allowance or a service pension as a 'member of the forces', the rate payable to him is the married rate. > >Guardian's allowance may be payable to a service pensioner who is unmarried, widowed, divorced or married but separated and who has the custody, care and control of a child. Under a proposal announced in the Budget Speech, the allowance will be increased to $6.00 a week where there is a child under 6 years or an invalid child requiring full-time care. > >Supplementary assistance at a maximum rate of $2.00 per week is payable, subject to a means test, to a service pensioner if single (or if married, where his wife is not receiving a pension from the Department of Social Services, or a service pension as an ex-servicewoman) who pays rent. Debate (on motion by **Mr Whitlam)** adjourned. {: .page-start } page 113 {:#debate-58} ### APPROPRIATION BILL (No. 2) 1969-70 Message from the Governor-General recommending appropriation for proposed expenditure announced. Bill presented by **Mr McMahon,** and read a first time. {:#subdebate-58-0} #### Second Reading {: #subdebate-58-0-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: (a) the construction of public works and buildings, (b) the acquisition of sites and buildings; (c) items of plant and equipment which are clearly definable as capital expenditure; (d) grants to the States under section 96 of the Constitution; and (e) new policies not authorised by special legislation. The main points regarding the proposed expenditures in this Bill are dealt with in my Budget Speech. I commend the Bill to honourable members. Debate (on motion by **Mr Crean)** adjourned. {: .page-start } page 113 {:#debate-59} ### BUDGET 1969-70 {: #debate-59-s0 .speaker-009MA} ##### Mr McMAHON:
Treasurer · Lowe · LP -I present for the information of honourable members the following papers in connection with the Budget for 1969-70: >Estimates of Receipts and Summary of Estimated Expenditure for the year ending 30th June 1970. > >Commonwealth Payments to or for the States 1969-70. {:#subdebate-59-0} #### National Income and Expenditure 1968-69 Government Securities on issue at 30th June 1969. Commonwealth Income Tax Statistics for income year 1966-67. Civil Works Programme 1969-70, prepared by the Minister for Works. Ordered to be printed. {: .page-start } page 113 {:#debate-60} ### LOAN (HOUSING) BILL 1969 Bill presented by **Mr Bury,** and read a first time. {:#subdebate-60-0} #### Second Reading {: #subdebate-60-0-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 to borrow a sum of $132,230,000 to be advanced to the States for housing in the current financial year in accordance with the provisions of the Housing Agreement Act 1966. The Australian Loan Council decided at its meeting last. June that the borrowing programme for States' works and housing for 1969-70 should be $758m. Within the limits of this borrowing programme the States have nominated the amounts that they wish to receive as advances under the Commonwealth-State Housing Agreement. The amounts so nominated and agreed to by the Loan Council are as follows: Last year advances to the States under the Housing Agreement totalled $126m. The amounts to be advanced to the States this year thus represent an increase of nearly *5%.* These advances are repayable over S3 years and bear interest at 1% per annum below the long term bond rate. The current Agreement is now in its fourth year of operation. By the end of that period about $501m will have been advanced. At least 30% of these advances will have been used to provide loans to persons seeking to buy or build their own homes. The remainder will have been applied by the States for the erection of homes either for rental or sale to families of low or moderate means. The States themselves determine the type of homes to be erected, their location and the selection of tenants and purchasers for the homes. I commend the Bill to the House. Debate (on motion by **Mr Crean)** adjourned. {: .page-start } page 114 {:#debate-61} ### QUESTION {:#subdebate-61-0} #### TERRITORY OF PAPUA AND NEW GUINEA: LAND TENURE Discussion of Matter of Public Importance Discussion resumed (vide page 30). {: #subdebate-61-0-s0 .speaker-JSU} ##### Mr BRYANT:
Wills **- Mr Speaker,** we are discussing one of the most important matters which is likely to come before this House in this session or which has come before the House over recent years. It refers to Australia's trusteeship responsibilities in the Territory of Papua and New Guinea. Australia is charged with the responsibility of developing this new nation which has an area of 180,000 square miles and a population of between 2 million and *2i* million. These people to our north will be either our friends or hostile to us in the future. The Australian Government has bungled its administration of this trusteeship area terribly and tragically over the last few weeks. Just before the suspension of the sitting for dinner we heard some economic euphoria pouring from the lips of the honourable member . for Evans **(Dr Mackay).** He said that everything will be wonderful and that if a big mine is opened up everything must be beautiful. He suggested that roads will be built, houses will be built, the people will advance socially and there will be tons of money for everybody. Has he ever taken a look at any other mining activities around the world? He does not have to look much further than New Caledonia. The honourable member for Brisbane **(Mr Cross)** has been there, and he might have something to say about it later. Of course, honourable members opposite in the debate this afternoon have avoided their responsibilities in this matter as they have attempted to avoid them all along: The Minister for External Territories **(Mr Barnes)** made a statement to the House this afternoon about the situation on Bougainville Island but refused to debate the matter. He refused to adopt the simplest procedure in the House to allow honourable members to debate the matter. He was avoiding his responsibility, and most of the honourable members on the other side of the House have likewise avoided their responsibilities. The honourable member for Evans consoled himself by attacking the 'Four Corners' television programme which brought this matter to the notice of the people of Australia. There is an unbridgeable gap between the view taken by honourable members opposite and that taken by honourable members on this side of the House. We are concerned with human values and we are sensitive about the traditions and the humane treatment of the people of Papua and New Guinea. Honourable members on the other side of the House are concerned with material values and the power-derived authority they will enforce come what may. There are some matters that have not been considered this afternoon. For instance, today the Government of Zambia announced that it will nationalise in fact, if not in law, the copper mines of that country. No Government of Australia can write a charter for the future of Papua and New Guinea. No Government can give an unconditional guarantee to any company, no matter how keenly and sincerely we feel about it, that its future in the Territory will be secure no matter what we do. The events which have taken place at Bougainville over the last few weeks have ensured that the people there will have a continuing resentment not only of the Administration but also of Conzinc Riotinto of Australia. In handling affairs at Bougainville, the Government has committed the greatest act of folly in the 25 years since the war. On the whole there has been reasonable, though conservative and cautious, progress in Papua and New Guinea. I have been a fairly consistent critic of many of the things which have been done in Papua and New Guinea, but I have always paid tribute to any advances to which I think Australians ought to pay tribute. On the whole the Australian Government has performed better in New Guinea than any other Government has in comparable circumstances, but Australia has done itself a great disservice by its actions in recent weeks. A few weeks ago, as a result of inquiries around my electorate, I visited Bougainville. The Minister for External Territories, on television or in an interview somewhere in his electorate, implied that I had gone to Bougainville and incited the people to revolt. If I can incite people to revolt in 1 day I am greater than Lenin. If I were able to do that I would be the most revolutionary character you have ever seen. But of course that is all nonsense. Part of the reason why the Minister does not see the facts of life is that he is trying to escape from them. I visited Papua and New Guinea. I placed an advertisement in the daily press. People throughout the Territory saw the advertisement and people in the area under discussion saw it. I sent telegrams to the local member of the House of Assembly. I said that I would be there to hear what they had to say, and see things for myself, and that is what I did. I was concerned with what had happened. I had watched the operations of our Government with the Aboriginal people of the Northern Territory, so I went to Bougainville with an open mind but with grave doubts. I went to the area and I discussed the matter with the officials. I received absolute courtesy from them. They are dedicated people. They said to me that they were going to enforce the law. I went up and looked at the mine which is 13 or 15 miles up a very rough, dangerous and difficult road. The visit was worth while. I went down to the beach and sat for 3 hours with the people, including **Mr Paul** Lapun, who is their local member, and **Mr Leo** Hannett, who has been here, who is a member of the University of Papua and New Guinea and who had with him a tape recorder. Somewhere in Papua and New Guinea is a record of this meeting, if anyone cares to look for it. Those people said to me as we sat under the coconut palms on the beach that afternoon: 'If they come on to our land we will fight. We have nothing to fight with, but we will fight.' I was touched with the tragedy and pathos of the situation. These simple folk have nothing but their land and now, with all the power at our disposal, we intend to take that land from them. I had no resources which would enable me to convince them otherwise. I had no way of opening up their minds, if they are to be opened up. Because of the way that we are carrying out this operation I do not believe that these people can be convinced that we do not intend to take their land. When I came back to Australia I made a statement about what I had seen and a fortnight ago I went to the Prime Minister **(Mr Gorton)** and told him that so far as I was concerned I had done my duty as well as I was able, that I had no intention of inciting anybody but that I was making sure that I knew what I was answering for as a member of this Parliament. I believe that what is going on up there is a deep disgrace. I foresaw and prophesied that it would happen. It has happened, and it will go on unless we take steps to stop it. The Prime Minister abdicated his responsibility in the matter, as has the Minister for External Territories, who is now at the table. The fact is that we have a deep trust in Papua and New Guinea. We do not own the place. We have no rights there; we have only duties. We have power in the Territory, but that does not give us the right to railroad people and to do what we like. Bougainville does not belong to us. In the future it might not even be part of a new Papua and New Guinea. It could be associated with the Solomon Islands or be an independent country in some different context altogether. If Nauru and Tonga can be independent, Bougainville also might be independent. In this area we have betrayed the trust that has been placed upon us. We cannot act like this with these people. We do not own them. We treat them even more as foreigners than the people of Italy, France or Greece. People from those countries can settle in Australia, but the people of Bougainville are not permitted to do so. We have a trust; this is a tremendous project. The point that has not been made clear by Government supporters is that we are not arguing today about the mining project. The facts are that the mining project will proceed, that the mining land has been alienated, that the people are going to receive, I think, $2 per acre per year for it and that they are going to be left with a hole in the ground about 8,000 feet long, 4,000 feet wide and perhaps a half mile deep. We are arguing about land for a housing estate - that is what it is. The Commonwealth is to buy land for a housing development. The Commonwealth is going to buy **Mr McKillop's** land, or acquire it, and take land from the Rorovana people - not for a mine, but for a town for other people. It is going to disadvantage one group of people so that another group can be advantaged. When I sat on the beach on that afternoon the people said to me: 'Why can't they build the town up there on that swamp land?' They were referring to the low-lying land behind the beach. Honourable members will find that land mentioned in the debates in the House of Assembly and in statements that have been made here and there. From the map, I would say that the area to which they referred covered 4 or 5 square miles. Of course the area would have to be filled in; but is there any great difficulty in draining marshes or in filling in swamps? There will be about 30 million tons of overburden from the mine. But of course that will not be done; that would take too long. There is an alternative to what has been done. There was an alternative site available, development of which required only money and engineering skill, which is possessed in a very large measure by both the company and the Administration. To do what was. done on Bougainville in order to avoid disadvantage to a private mining company was an act of incredible folly. In my view it is completely unethical for the Government of Australia to act as agent for a private mining company in such an instance. It must be made clear to the people of Australia that what has happened on Bougainville that has led to the trouble has nothing to do with the mining of copper; it is part of the ancillary services. Alternative land is available if we have the wit and the will to utilise it. We have abdicated our responsibilities. We have breached our trust. We will sow the seeds of continuing resentment that will make it difficult for us to operate in the area for years to come. Over the last 3 or 4 years the people have expressed their resentment about certain things. A man at Kieta was sentenced to 2 months gaol last September because he resisted somebody chopping down trees on his land. The Commonwealth will spend millions of dollars on this project for the company's advantage. It will build roads where it would not build them for the local people. It will build primary, secondary and technical schools where it never had the money to build them for the local people. On every count the Government is to be censured in respect of this operation. There is an alternative area for the town site. Anybody who looks at the map or appreciates the competence of Australian engineers can see that there are alternatives. The people of the area have been driven to a state of resentment. The Government has acted with unbecoming violence and in a manner completely unbecoming an Australian and civilised community. In my opinion this is one of the most disgraceful actions- **Mr SPEAKER (Hon. W. J. Aston)Order!** The honourable member's time has expired. {: #subdebate-61-0-s1 .speaker-K5O} ##### Mr CORBETT:
Maranoa -- To raise an issue such as this for discussion as a matter of public importance, which the honourable member for Lang **(Mr Stewart)** has done today, demonstrates a deplorable lack of knowledge of what is needed in the Territory of Papua and New Guinea. This is a very important matter but this is certainly not the way to approach it. This debate will do nothing towards solving the problems that exist in the Territory. I, too, have recently been in Bougainville. I travelled around the area. Together with members of the Government Members Mining Committee I met a very comprehensive cross-section of the community. We were prepared to talk to everybody because it was our desire to ascertain the problems confronting the people of the area. In particular we wanted to meet the indigenous people of the area. We wanted to ascertain their problems and to see what could be done to assist them if assistance could be given. Tonight the Opposition is trying only to make political capital out of a difficult situation. This debate will only add confusion in an area where already the greatest difficulty is being experienced in providing a proper picture of what the natives will eventually get from this project. The objective of the Administration in Papua and New Guinea is the progress and development of the area and the welfare of the people who live within its borders. {: .speaker-KDA} ##### Mr Duthie: -- How can this be relevant? {: .speaker-K5O} ##### Mr CORBETT: -- If he is patient the honourable member for Wilmot will find out in a minute or two. Having regard to its objectives the Administration welcomed an investigation of the possibility of economic development of mineral resources in the area by a company with the financial resources and technical skills possessed by Conzinc Riotinto of Australia. If those financial resources and technical skills had not been available to the company it is quite possible that this very valuable development would never have taken place because a great deal of investigation was required before the mineral deposits could be proved to be of economic significance. When it became obvious that this project was likely to eventuate the Administration's field officers in the area did all they could to explain the position to the natives. I would emphasise the tremendous difficulties with which those officers were confronted. No mention of these difficulties has been made. Reference has been made to the number of languages spoken in the area. There are some 700 over the whole of the Territory. It has been mentioned that there are 19 in Bougainville itself. People who live in quite close proximity to one another cannot converse except by the use of pidgin. Whilst pidgin has done a remarkable job in enabling communication to take place, it leaves a lot to be desired as a medium of communication when explaining something which is entirely new to these people. These were the problems which were faced by the Administration and its officers. The honourable member for Wills went on to say that we have done ourselves a great disservice in this matter. I say that the great disservice has been done by those people who were consistently - and to some effect - stirring up trouble in the area and trying to undermine the good work that has been done by the officers of the Administration. I know, and everyone knows who has been there, that these people have a very great love for their land. They do not want to be moved from it, but when the position is explained to them and when they have a reasonable conception of what is taking place they are prepared to co-operate as they did in relation to the 10,000 acres at Panguna where the mine is situated. The same problems arose there but they were overcome and the natives now are getting some of the benefits from this mining venture. They accepted the proposal because the disrupters did not have quite the same amount of time to get amongst them. It is very easy to convince these primitive people, particularly when you are quite untruthful, stop at nothing and use the tactics that they used to convince these people that the intentions of the Administration are not to benefit them. {: .speaker-YF4} ##### Mr Cross: -- Who are 'they'? {: .speaker-K5O} ##### Mr CORBETT: -- There were enough of them in the area. Fortunately there were not more of them, otherwise there would have been more trouble. I will not name them. The honourable member was there and if he had looked around as I did he would know them and would not want me to name them. There is no need for me to name them. Anyone who has been there in recent times knows that there were not many of them but that they caused a good deal of trouble. As I have said, when we were there we tried to get an opinion from everyone we could interview. We went to the mission; we went to the mine; we went to the Administration officers; we went to the people who were managing the mine. We spoke to the native people wherever we had an opportunity to do so. We went to the Rorovana area and had a meeting with the people. The member for the area, Paul Lapun, was with us and acted as interpreter to convey our remarks to the native people. Our main objective was to learn the problems of the indigenes. At the meeting, which was attended by some fifty people, only one person asked questions although we gave everyone the opportunity to do so. This person, who had been indoctrinated by the people who were trying to undermine the Administration, asked question after question until finally I said: 'It is time someone else was given the opportunity to ask questions'. It appeared that one or two others wished to ask questions. Of the whole group only two others asked questions of us. There we were, members of the Australian Parliament, asking them to tell us their problems so that we could assist them in whatever way we could: We were anxious that they should approach us but they did not tell us of any of their problems. We learned too that they had had discussions with Administration officials who had been approached by the natives at all hours of the day and night - we checked that particularly - and the officials were prepared to listen to the natives as long as the natives wanted to talk. The natives were given every opportunity. This was confirmed by the head of the mission in the area who said that over a considerable period the natives had been approaching him to have the objectives explained to them. There is no doubt that the cooperation which is being given to the Administration and to the company in the area of the mine would certainly have been given in the area where the land is needed for the supporting industries for this great project. I have not the time to deal with many of the aspects of the benefits that will accrue from this venture when it gets under way. I will quote one benefit as an example. I quote from an address given to the House of Assembly. Referring to the educational programme, the speaker stated: >It is estimated that this programme, when fully under way, will involve the company with an annual expenditure of about half a million dollars. Many other benefits', including health benefits, will come as a result of this venture. I do want to emphasise the success that the Administration has achieved. The sensations that we have seen in some of the forms of mass media that provide information to the public show that the mass media have forgotten about the successes that have been achieved. The Administration is to be congratulated on what it has done particularly when its achievements are looked at against the background of the very great difficulties that it has experienced. I wish to congratulate the Administration on what it has achieved. The greatest need at this time is patience, tolerance, understanding and co-operation on the part of all people who have an interest and a concern in this matter. {: .speaker-KUX} ##### Mr Stewart: -- And a little bit of tear gas. {: .speaker-K5O} ##### Mr CORBETT: -The people who are genuinely interested in the welfare of the natives of this area dp regret that any force has to be used.. But the blame for that is on the disrupters who have gone into the area. If the Administration had been given a reasonable opportunity to employ the methods that it was using to encourage the natives to co-operate with it, the problems would have been resolved. When this type of disruption comes into the situation, I suggest that the position becomes tremendously difficult. The real need at this time, is an understanding of the position as well as the tolerance that is required to enable the natives to understand what will happen. Once the natives start to get some tangible benefit from this development, I am sure that we will see a repetition of what happened in the mining area in the area where land is being sought at the moment {: #subdebate-61-0-s2 .speaker-10000} ##### Mr SPEAKER: -- Order! The honourable member's time has expired. {: #subdebate-61-0-s3 .speaker-YF4} ##### Mr CROSS:
Brisbane **- Mr Speaker,** a lot of heat has been engendered in this debate which has been brought before the Parliament today by the honourable member for Lang **(Mr Stewart).** Some very bard things have been said and some very truthful things have been said about various aspects of Australia's administration of the Territory of Papua and New Guinea and that particular part of the Territory on which we focus our attention this evening. I welcome the fact that the Minister for External Territories **(Mr Barnes)** wm follow me in this debate to sum up and to reply from the point of view of the Government. I hope that, in his reply, with his knowledge of the Territory he will clear up some of the misapprehensions and some of the doubts that have been introduced in this debate. The Opposition has brought this matter before the Parliament not in order to make party political capital from the debate but to direct attention to our trusteeship of this Territory. The trusteeship of this Territory was handed over to Australia by the League of Nations. We continue the administration of the Territory under trusteeship from the United Nations. It is a very responsible trust. Unhappily, certain incidents having occurred in the Territory in recent times, we are debating this matter in the Parliament of the Commonwealth of Australia. But the Opposition has brought this matter before the Parliament because we would be failing in our duty if these unfortunate incidents in which batons and tear gas have been used against the indigenous people of Bougainville were not discussed properly in this Parliament. We are asking for a clear statement on what the Government proposes to do. Quite frankly, every Australian is proud of the Australian Administration in Papua and New Guinea. In my time in this Parliament, which has been approximately 8 years, I do not recall any occasion on which the Opposition ever has suggested that the amount of expenditure in the Territory of Papua and New Guinea should not be increased. Indeed, on so many of these things, we are on common ground with the Government. But this is an occasion when, these matters having been brought before the Parliament this afternoon and this evening, the Minister and the Government should not spell out their complacency. The Minister, of course, has not spoken in this debate yet. But we have heard from other Government speakers statements on what has happened, and on the great benefits that will accrue to the Territory. Many features of the Territory's administration we. ourselves support. But we are asking, in the light of what actually has happened, what the Government proposes to do now. I would like the Minister, in his reply, to clear up some of the very loose statements which have been made. He is reported as saying that the situation has not been reported properly in the Australian Press. I hope that the Minister spells out those matters which have not been reported properly in the Australian Press and that he tells us the Government's objectives and in what way he, his Department and the Administration have been misrepresented. A number of speakers from the Government side have spoken of stirrers and agitators who have gone there to stir up trouble. My friend the honourable member for Maranoa **(Mr Corbett)** rather suggested that I had been to Bougainville. Unfortunately, at this point of time I have not. I would have liked to go with my colleague, the honourable member for Oxley **(Mr Hayden),** but commitments prevented me from going at that time. {: .speaker-KUX} ##### Mr Stewart: -- What were those commitments? {: .speaker-YF4} ##### Mr CROSS: -- Modesty prevents me from replying to that. I and every member on this side of the House would resent any suggestion that the honourable member for Wills **(Mr Bryant)** and the honourable member for Oxley would be placed in this category of agitators and stirrers. I have known both of these gentlemen over a period of time. I have known of the interest of the honourable member for Wills in the land rights of Aboriginals at Yirrkala and the rights of the Gurindji people and others. These mysterious statements about agitators and stirrers stirring up trouble have been made by a number of members on the Government side, but we want a clear statement from the Government as to whether these people who are stirring up trouble in the Territory are members of the House of Assembly, missionaries or whatever they might be. Let the Government and the Minister cut aside this cloak of ambiguity and anonymity that shrouds these people and clearly state who is causing trouble in Bougainville. None of us debates the importance of this development for the Territory. I know we would be at variance in this Parliament as to whether or not we should leave these people completely alone. Every responsible member of Parliament realises not only that we carry a responsibility to the people of the Territory of Papua and to the people of the Trust Territory of New Guinea, but also that in the years ahead we will carry a responsibility to the Australian taxpayer. too. The responsibility of advancing the Territory in the future is one that will become increasingly burdensome to this country. We meet this responsibility cheerfully because it is fairly small compared with the responsibility mat Great Britain and other countries have met in the past. Notwithstanding that, the Australian Labor Party, which advocates far greater development in the Territory and the establishment of a far more equitable society in Australia, realises probably more than does any other political Party represented in this Parliament the need for the economy of New Guinea to be placed on a stable and sound basis. So we are not opposed to this mining development, but one has to look at the realities of the situation. A great deal of Australian and overseas capital is being placed into this venture. A great deal of risk capital is involved. I think we would all commend the enterprise, the foresight and the courage of those entrepreneurs who are prepared to invest in an area like Bougainville - an area of possible political instability. I remember that when I came here in 1961, in the aftermath of the Foot report, people said that we would like to be in New Guinea for 30 years but that we may be there for only 7 years. Rather happily, our period of trusteeship seems to have extended. Notwithstanding any of those things, I think that most people who are placing a great deal of capital into an enter, prise there realise that they are taking certain risks. In New Guinea we operate under pressure from the United Nations and from international opinion quite outside the United Nations. Therefore our tenure of office in our capacity as a trustee is uncertain. In all those circumstances Conzinc Riotinto of Australia and Bougainville Copper Pty Ltd have shown some courage; they have displayed some enterprise. Thengreatest asset in the future for the investment they are making in the Territory is the goodwill of the people of the Territory. It is precisely this question that is the crux of the whole debate. We have had certain incidents in which the people of Bougainville have shown their resentment and opposition to the development 'that is taking place there. We have been told that the Administration over a period of some years has gone to a considerable amount of trouble to endeavour to explain to the people just what this development means to them, to their children and to the Territory in the years ahead. We know that the unity of this nation is not well established. We know that some of the problems in the Territory for which we have responsibility are akin to the problems that exist in Indonesia where the national motto is 'Unity in Diversity'. We know that these problems exist. We do not want, in bringing this matter before the House, a statement of complacency. We do not want Government supporters to come forward and say: 'We have done our best. Everything we have done is all right, as time will show'. We believe the unhappy incidents in Bougainville in recent times have been an indication that the actions which have been taken have not been good enough. What the Parliament is calling for tonight, and what the Opposition and the people of Australia are seeking is for the Minister to spell out in the reply he will make in a few minutes just what additional measures the Administration will take and what additional measures the Government will take. The situation is that all Australians are proud of what we have done in New Guinea. We have come to the cross roads in this situation. We have come to the cross roads in regard to an enterprise which economically and in other ways is of great importance to the future of the Territory and which is important, because of that, to the people of this country. We do not want the Government to be complacent, nor do we want the Minister to be complacent, because although we recognise what his administration and he himself have tried to do, the incidents that have happened there indicate that further action is necessary. If we are going to build in the Territory of Papua and New Guinea, including Bougainville, the kind of society and the kind of nationhood we all hope will be built, the ball is back at the feet of the Government and the Minister. We now look forward to the Minister's reply. We hope it will be not a complacent one but one which shows the sense of responsibility which all Australians wish to see in our dealings with the Territory of Papua and New Guinea. {: #subdebate-61-0-s4 .speaker-JOA} ##### Mr BARNES:
Minister for External Territories · Mcpherson · CP -- First of all, I would like to clear up a misrepresentation by the Opposition. It has been suggested that the Government endeavoured to avoid a debate on this matter by refusing to move that the paper be noted. We were forced to do this as a result of our negotiations with the Opposition. I had hoped to have a full and open debate on my statement because I believed that this House, and through this House the people of Australia, should be properly informed of everything that happened at Bougainville. Members of the Government Mining Committee have been there observing the situation. We have had most valuable contributions from them tonight which unfortunately were limited to 10 minutes. What on earth can be done in 10 minutes? They had most valuable tape recordings. The Opposition gave us to understand that it would refuse permission for me to make a statement and the arrangement was that we should not move that the paper be noted so that the Opposition could go on with this discussion of a matter of public importance. As far as I am concerned, this is a disgraceful situation. This was the arrangement. {: .speaker-JSU} ##### Mr Bryant: -- That is not true. {: .speaker-JOA} ##### Mr BARNES: -- It is. Here we are and we have to make do with this. The honourable member should get in touch with his deputy leader and he will find out that this was the arrangement. Anyway, we are doing well enough as it is and we do not need to go any further into that question. We wanted a full debate, and obviously on what has been stated by my colleagues who were up there and observed the situation for themselves it is easy to understand why the Opposition did not want to hear any more. It has been suggested that loose statements have been made and that I have to follow up and gather them together. I made a very full statement covering all details and all questions before this debate began. 1 suggest to those honourable members who have not listened, or if they did listen do not appear to have taken it in, that they should read the statement. If the statement is published people will have an understanding of what has happened. We fear nothing. It is unfortunate when force has to be used; but here again it is the will of the people who have come into this operation and it is the will of the members of the House of Assembly. They made this decision in the interests of their country. Under the Budget introduced tonight, the contribution by the Australian taxpayers this year will be a little short of SI 20m. This is a grant, with no strings tied to it. It is for this Territory of two million people. It represents $60 per capita. No other country measures up to that sort of contribution or comes anywhere near it. Our objective is to bring these people to a point where they are able to run their own show. First of all, they have to have economic viability. They have to be reasonably independent from an economic point of view; otherwise, as I said in my statement today, independence is meaningless. In this primitive operation one is dealing with primitive customs and attitudes, particularly in relation to land - it is a very emotional issue even between native and native - which produce these difficult situations. Over recent weeks, I think, somewhere between ten and fifteen natives have lost their lives in inter-tribal disputes over land. These are the things that are happening all over the Territory. These are the things that one must look at in the context of the Territory. There is one point about which 1 am really concerned in regard to the attitude of the Opposition. It is the denigration of the House of Assembly. This is a very serious situation. The honourable member for Oxley **(Mr Hayden)** indicated that the members of the House of Assembly did not know what they were doing. He said that they were remote and so on. Although he had no reason to answer my interjection, I interjected to clear up this situation. But he would not answer me. The tone of his speech was that the members of the House of Assembly are remote; they do not know what is happening on Bougainville; and the people feel that they are not represented. To support my statement, I point to the very terms of this matter of public importance raised by the Labor Party. They are so strange that they make me quite suspicious that members of the Labor Party did not want a full debate but that they felt duty bound to come up with something. What they have raised is a matter of public importance, which has the lowest status of any protest that can be made in this House, lt is not a motion of censure; it is not an urgency motion; it is a matter of public importance. It shows their attitude when they raise the matter in the lowest status in which a protest can be made. {: .speaker-KUX} ##### Mr Stewart: -- Tell us whether you are going to use tear gas. {: .speaker-JOA} ##### Mr BARNES: -- Do not change the subject. You do not like this. The very terms of this matter of public importance- {: .speaker-10000} ##### Mr SPEAKER: -Order! I remind the honourable member for Lang that he introduced this debate and has spoken in it, and he has been interjecting continually. I suggest that he refrain from interjecting. {: .speaker-JSU} ##### Mr Bryant: -- **Mr Speaker,** I raise a point of order. The Minister just used a term which, I suggest, is offensive to the forms of the House. Surely to say that this matter has the lowest status of any form of the House is not parliamentary. {: .speaker-10000} ##### Mr SPEAKER: -- Order! There is no substance in the point of order. {: .speaker-JOA} ##### Mr BARNES: -- To support my argument on the Opposition's denigration of the House of Assembly, let me quote the following from its matter of public importance: to appoint a Joint Select Committee of the Australian Parliament to inquire into and report upon the most appropriate system of tenure, registration, leasing and resumption of land in the Territory. In other words, the Opposition is saying that members of the House of Assembly do not know what they are doing and are incapable of running their own affairs. Consider the resentment on the part of members of the House of Assembly when the United Nations suggested that they could not run their own elections. Now the Opposition is corning in and snubbing the House of Assembly. That is what it is amounting to. Let us look further at the attitude of the Opposition. Let me take some comments made during previous debates by these honourable members who have been sponsoring Papua and New Guinea. They show the opinions those honourable members had when the House of Assembly was being established. This is what the honourable member for Fremantle **(Mr Beazley)** said on 14th May 1963: 1 did not sense any hatred or tension in New Guinea and we in the Opposition believe for that reason we should trust this Papua-New Guinea Parliament, this Parliament really representative of the people of Papua and New Guinea, considerably more than is evinced on the Government's part in the Government's proposal for a House of Assembly. On 14th May 1963 the Leader of the Opposition **(Mr Whitlam)** said: >The basic thing, however, is that the people there should have the opportunity of representative government. We have heard much from the honourable member for Wills **(Mr Bryant).** On 14th May 1963 he said: >We have a faith in the ability of people to look after themselves, to stand on their own feet and' to develop their self-reliance. Now he wants to tell them what to do. He went to Bougainville and told the people there what they should do to oppose their own elected members. {: .speaker-JSU} ##### Mr Bryant: -- Who did that? {: .speaker-JOA} ##### Mr BARNES: -- You did. The honourable member for Wills is a very voluble gentleman. Again, on 14th May 1963 he said: >All we ask is that the Government give to the people of Papua and New Guinea the self-respect that representative government demands. You will not get self-respect unless you develop selfreliance. Now he wants to interfere. Now his Party asks for the appointment of a joint select committee. {: .speaker-10000} ##### Mr SPEAKER: -Order! The honourable member for Wills is interjecting. I have already warned him during this debate and also this morning against doing so. If he continues I will deal with him. {: .speaker-JOA} ##### Mr BARNES: -- Again the honourable member for Wills, on 27th October 1966, said: >The people of Papua and New Guinea have chosen their representatives. I think it is part of the pattern of development that we place upon them as much responsibility as we can. The people of the Territory have taken the responsibility for developing this copper project, but now the Opposition suggests that we should appoint a joint select committee to tell them what to do. The honourable member on the same date also said: >Perhaps there should be implied sanctions against restriction of freedom of speech and freedom of association. But apart from those, I cannot see many areas where complete faith should not be placed in the House of Assembly. So apparently we have support for the House of Assembly. On 9th May 1968 the Leader of the Opposition said: >More projects are needed, like the New Britain palm oil project, where the Administration is taking up a one-half share in the capital and the projected copper mining project in Bougainville, where the public share will be 20%. But Opposition members have turned turtle. At one time they were building up the House of Assembly; now they are pulling it down. {: .speaker-KSB} ##### Mr McLeay: -- They have shifted their ground. {: .speaker-JOA} ##### Mr BARNES: -- They have. This is political expediency. We have heard valuable contributions from my colleagues on this side of the House, especially the members of the Government Members Mining Committee. They have pointed to the stirrers. The honourable member for Evans **(Dr Mackay)** said that the manager of a plantation went to a village and said he would supply arms for an uprising against the company and that he would fight alongside the villagers. This is the sort of thing that has happened. It has been reported to me that the honourable member for Wills advised the people not to sell their land. But here tonight he said that he only listened. Can any honourable member imagine the honourable member for Wills only listening? That would be absolutely impossible. **Mr Speaker,** I do not think I need add anything more. This is the weakest proposition that Opposi tion members have ever put, but I say again that I am concerned at their snubbing of the House of Assembly. {: #subdebate-61-0-s5 .speaker-JO8} ##### Mr BARNARD: -- I wish to make an explanation. When the Minister for External Territories **(Mr Barnes)** commenced his speech, he commented on the procedure that was to be adopted when he made a statement earlier today. I inform the House that the arrangement sought by the Minister for Air **(Mr Erwin),** acting in his capacity as Leader of the House, was that he would not move that the House take note of the paper. I agreed on the understanding that the honourable member for Lang **(Mr Stewart)** would be allowed to proceed with the matter of public .importance that he wished to raise. I think the Minister ought to understand the position fully. {: .speaker-JSU} ##### Mr Bryant: -- **Mr Speaker,** I wish to make a personal explanation. {: .speaker-10000} ##### Mr SPEAKER: -Does the honourable member claim to have been misrepresented? {: .speaker-JSU} ##### Mr BRYANT: -- Yes, **Mr Speaker,** 1 have been misrepresented. The Minister for External Territories **(Mr Barnes)** asserted that 1 told or advised the people at Bougainville not to sell their land. T went there and listened to what the people had to say. They had been refusing to sell their land for years. They did not need any advice from me. {: .speaker-10000} ##### Mr SPEAKER: -- The discussion has now concluded. House adjourned at 10.1 p.m. {: .page-start } page 124 {:#debate-62} ### ANSWERS TO QUESTIONS UPON NOTICE The following answers to questions upon notice were circulated: {:#subdebate-62-0} #### Premiers' Conferences: Relative Salaries (Question No. 1584) {: #subdebate-62-0-s0 .speaker-6U4} ##### Mr Whitlam: asked the Prime Minister, upon notice: >Has a Premiers' Conference ever discussed the relative salaries to be paid to Commonwealth and State (a) Ministers and parliamentarians, (b) Judges and (c) public servants. {: #subdebate-62-0-s1 .speaker-KH5} ##### Mr Gorton:
LP -- The answer to the honourable member's question is as follows: >I am informed that the records of the proceedings of Premiers' Conferences since 1901 of which a transcript was made and published are obtainable through the Parliamentary Library. Vietnam (Question No. 1576) {: #subdebate-62-0-s2 .speaker-BV8} ##### Mr Calwell:
MELBOURNE, VICTORIA asked the Minister for External Affairs, upon notice: {: type="1" start="1"} 0. Has the Government received any representations from the Government of the United States or the Saigon authorities requesting the grant of permits allowing supporters of the present Saigon regime to settle in Australia as American troops are withdrawn progressively from Vietnam. 1. If so, is he able to say whether these representations were made on behalf of wealthy and reactionary supporters of the Saigon regime. {: #subdebate-62-0-s3 .speaker-JXI} ##### Mr Freeth:
LP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. and (2) The Government has received no representations to this effect from the Government of the United States of America or from the Government of the Republic of Viet Nam. The United States Government's position on the withdrawal of forces from Viet Nam was stated by President Nixon on 14th May, 1969. Prawn Fishing (Question No. 1568) {: #subdebate-62-0-s4 .speaker-KGH} ##### Mr Hansen:
WIDE BAY, QUEENSLAND asked the Minister for Primary Industry, upon notice: {: type="1" start="1"} 0. Has he caused any investigation to be made into the reasons for the absence in any quantity, of prawns in the Gulf of Carpentaria. 1. In particular, has he investigated allegations by prawners that the shortage is a result of the failure of the Queensland and Commonwealth Governments to apply any restrictions on the taking of prawns, especially by foreign vessels. 2. If these allegations prove to be correct, what action will be taken to protect this industry which provides a livelihood for so many people of the north. {: #subdebate-62-0-s5 .speaker-BU4} ##### Mr Anthony:
Minister for Primary Industry · RICHMOND, NEW SOUTH WALES · CP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. Seasonal fluctuations are common in all prawn fisheries and the current decline in catches taken in the Gulf of Carpentaria is not unique. Research into prawn fisheries has taken place in various parts of the world without as yet providing fully satisfactory management techniques. The need for research into the prawn fisheries of northern Australia is fully recognised and steps have already been taken by the Government for an extensive research programme as soon as men and facilities can be arranged. 1. The Commonwealth/ Queensland surveyin the south-east of the Gulf that first located commercial quantities of prawns gave indicationsthat the continuing level of take was likely to be well above that obtained last year. The Government has already acted to rationalise this industry in order to avoid over-exploitation. The Commonwealth has limited the number of processing vessels licensed to operate in the Gulf of Carpentaria and limited the number of processing plants in the Northern Territory. In respect of Queensland, as indicated in my reply to Question 1360 by the Honourable Leader of the Opposition, the introduction of a licensing system for processing plants in that State has presented a number of legal problems which it is hoped can soon be resolved. I understand that the catch taken by foreign boats has been only a fraction of that taken by Australian boats. During 1969 the only fishing undertaken by foreign boats in the Gulf of Carpentaria was by boats attached to approved joint venture enterprises; special conditions have been imposed on such vessels. 2. See (1) and (2) above. As further information on the prawn resources becomes available it will be examined and the Government will, if necessary, introduce additional management measures. Education: Student Teachers (Question No. 1535) {: #subdebate-62-0-s6 .speaker-6U4} ##### Mr Whitlam: asked the Minister for Education and Science upon notice: >In what circumstances are students at teacher's colleges eligible for admission to university colleges and halls of residence the construction or extension of which the Commonwealth has helped to finance. {: #subdebate-62-0-s7 .speaker-QS4} ##### Mr Malcolm Fraser:
WANNON, VICTORIA · LP -- The answer to the honourable member's question is as follows: >Any student at a teachers' college who is also engaged in concurrent university studies is eligible for admission to a university residential college or hall of residence, the construction or extension of which the Commonwealth has helped to finance. Education: Mentally Retarded Children (Question No. 747) {: #subdebate-62-0-s8 .speaker-6U4} ##### Mr Whitlam: asked the Minister for Education and Science, upon notice: {: type="1" start="1"} 0. How many mentally retarded children are eligible for admission to a special school in each State and Territory. 1. Which States and Territories have established: (a) special schools and (b) hostels for mentally retarded children. 2. Who conducts each centre. 3. What assistance is extended to centres in each State and Territory by: (a) the Commonwealth and (b) each State. 4. What (a) number and (b) percentage of eligible children is enrolled in special schools. 5. How many eligible children in each State and Territory live more than twenty miles from their nearest special school 6. What (a) number and (b) percentage of such children is accommodated in hostels. {: #subdebate-62-0-s9 .speaker-QS4} ##### Mr Malcolm Fraser:
WANNON, VICTORIA · LP -- The answers to the honourable member's questions are as follows: >The information in this reply concerning the States has been provided through the co-operation of the State Directors-General of Education. > >A brief summary of the facilities made available by the Commonwealth and State Governments and independent organisations for the education and training of mentally and physically handicapped children in Australia is contained in a Bulletin released by my Department in October last year. Before setting out the reply in detail, 1 would like to point out that the State authorities have responded in different ways to the Honourable Member's question and it was found that to answer each part of the question specifically, from the information provided, would have resulted in misleading comparisons. In defining 'mentally retarded' the States generally base their classification on intelligence quotients, but point out that intelligence quotients are only one of a number of criteria *used* in determining placement in special schools and classes. The percentage of the school population falling into particular intelligence groupings can be estimated and would be similar from State to State, but such estimates may not provide a reliable guide to the need for special forms of education. As indicated, intelligence quotients are only one factor and many children who are mildly handicapped are able to be educated satisfactorily in normal schools. > >The term 'eligible' has been interpreted differently by the State authorities. To provide a meaningful answer it would be necessary to reach a uniform definition of the term. This was not found to be practicable within the context of the Honourable Member's question. However, the following comments for some States may supplement the information given in answers to other parts of this question, particularly (5): > >Victoria - The total known eligibility is 4,319. South Australia - Mentally retarded children are brought to the notice of the South Australian Education Department by regular annual surveys or they are referred by medical practitioners and parents. The annual increase is approximately 100 students. > >Although the Education Department endeavours to place all eligible mentally retarded children in special schools, it may be that the placements are slightly less than the actual number of eligible children. Despite the efforts of the Department, the exact number of children cannot be accurately ascertained, as a few parents do not accept the possibility of schooling for their children. > >Western Australia - A distinction is made between educable mentally retarded children who are capable of managing a modified school course relating closely to adult needs and likely to manage a routine job in the open labour market, if special placement help is given on leaving school between15 and 16 years of age and trainable mentally retarded children. > >The total numbers eligible for admission to a special school are 5,250 educable and 900 trainable. > >Tasmania- Only those mentally retarded children whose intellectual handicaps are ascertained as being of such complexity and severity as to render them incapable of profiting from attendance at a special school for moderately mentally retarded children would be considered ineligible for admission to school. Of these, a number attend the Health Department's Day Centre in Hobart and others have been hospitalised. > >(a) Special schools and classes for mentally retarded children have been established in all States and Territories. (b) Residential hostels for mentally retarded children have been established in all States, but not in the A.C.T. or the Northern Territory. > >New South Wales- Special schools and classes for both the mildly and moderately handicapped have been established by both the Education Department and voluntary or church organisations. Residential facilities attached to special schools are provided by the Education Department for one school for mildly handicapped children, by the Roman Catholic Church at two schools for mildly handicapped children and by a number of voluntary organisations at some of the schools for moderately handicapped children. Further details concerning the facilities and the authorities who conduct them are: > >Moderately Intellectually Handicapped - Department of Education: 11 special schools with 49 classes, 9 classes in 4 psychiatric hospitals and 42 classes in 18 centres owned by voluntary organisations. > >Voluntary Organisations: 130 classes in 34 centres. > >Mildly Intellectually Handicapped - Department of Education: 4 special schools with 29 classes, 194 classes attached to 159 primary schools and approximately450 classes in secondary schools. > >Church Schools: 2 schools with approximately 140 pupils. > >Victoria - Details concerning the facilities and the authorities who conduct them are: > >Queensland- In 1968 the Queensland Education Department conducted 16 centres for slow learners in separate opportunity schools (8 in the metropolitan area and 8 in country centres), and a further nine centres in Opportunity classes attached to primary schools (mostly in country areas). > >A centre for the intellectually handicapped up to the age of 7 years is operated by the Chermside Hospital Board. The Department of Psychiatric Services conducts two centres, which are residential and have schools attached, for mentally handicapped children and adults. > >All other centres for the mentally handicapped are conducted by the Queensland Subnormal Children's Welfare Association. Two types of day training centres cater for children between 5 and 18 years of age: > >Day Schools, for those who can profit from formal training in a school situation. There are 17 Day Schools in the State. > >Special Care Centres, for children requiring training in social competence, observation for diagnostic purposes, and the promotion of general family welfare. There are 13 Special Care Centres. > >Four Family Group Homes (2 more proposed 1968) and 2 other residential centres provide accommodation where necessary for children attending day schools. A residential Intensive Therapy Unit to prepare children to attend day school is currently being established. The Association also conducts 11 sheltered workshops (one is residential). These centres cater for some 1,300 individuals. > >South Australia - The South Australian Education Department conducts 32 special schools in South Australia. Some of these schools also cater for Blind and Deaf children. Approval has been given for the Education Department to be responsible for a school at the Woodville Spastic Centre and a small school within the Adelaide Children's Hospital as from 1/7/69. Both these schools will cater for some mentally retarded children. > >The Education Department does not conduct hostels. The Mount Gambier Branch of the Mentally Retarded Children's Society intends to open a hostel for Mentally Retarded children at Mount Gambier in the near future. The Mentally Retarded Children's Society operates one hostel in the metropolitan area. > >Western Australia - The Education Department of Western Australia conducts 86 special schools for educables and 14 special schools for trainables. The Slow Learning Children's Group conducts 3 hostels. > >Tasmania - The Tasmanian Education Department conducts eight special schools, one of which is a hospital school. > >The Retarded Children's Welfare Association of Tasmania conducts three hostels for mentally retarded children. > >Australian Capital Territory - There is one special school for moderately intellectually handicapped children in the Australian Capital Territory. The school is conducted at Commonwealth expense in conjunction with the Kew South Wales Department of Education. A further special school is under construction. > >There are six special classes at primary level and ten at secondary level for mildly intellectually handicapped children. These classes are provided at Commonwealth expense by arrangement with the New South Wales Education Department. > >Northern Territory - Two special schools for moderately intellectually handicapped children are conducted by the South Australian Education Department on behalf of the Commonwealth. Four special classes are also conducted under similar arrangements. > >The Slow Learners Association Incorporated also conducts a centre in Darwin. > >(a) and (b) > >In Commonwealth territories, the Commonwealth Government bears the cost of the educational facilities it provides for mentally retarded children. Such costs include reimbursement to a State for services provided in a Commonwealth territory by a particular State. > >In general the States bear the cost of the educational facilities they provide for mentally retarded children within their own boundaries. However, certain classes of institution in a State may qualify for capital assistance from the Commonwealth under the States Grants (Mental Health Institutions) Act. Under the National Health Act unmatched Commonwealth benefits are payable in respect of persons who are in the care of approved nursing homes and children under 16 in handicapped persons homes. For those over the age of 16, Commonwealth social service benefits, e.g. invalid pensions are available. > >The Commonwealth and State Governments within their own territories also assist private organisation > >The details of assistance to private organisations are included in the following: > >New South Wales - The State Government provides the following assistance: > >Centres for moderately intellectually handicapped: Subsidy of $2 for $1 towards cost of building and equipping schools and hostels; > >Subsidy towards salaries of teachers (Supervisors) at rate of $1,950 for trained supervisor and $1,500 p.a. for untrained; > >Subsidy towards cost of transport of children to schools. > >Mildly Intellectually Handicapped: No special assistance. > >Victoria - As well as its commitments to the Education Department and the Mental Health Department, the State provides through the Mental Health Department subsidies to Day Training Centre voluntary agencies on buildings, equipment and salaries. Registered schools may obtain transport for pupils through the Education Department. > >Queensland - The Queensland Subnormal Children's Welfare Association receives from the State Government an annual endowable subsidy towards running expenses, subsidies for qualified teachers and qualified clinical staff (for males, $450 per quarter, for females, $325 per quarter), and an annual subsidy towards capital works (except sheltered workshops, which are subsidised by the Commonwealth Government). > >Through the Queensland Department of Education, the State Government also assists in the transport of subnormal children to Day Training Centres. South Australia - Western Australia- The State Government provides and meets the cost of educational facilities and assists the capital cost of hostels on a $ for $ basis. Tasmania - The State Government' meets the total cost of all essential . items of expenditure involved in the running and administration of special schools. School buildings are provided and maintained by the Education Department except at. Launceston where one special school building is owned by the Retarded Children's Welfare Association. Australian Capital Territory- The Commonwealth provides the school site and buildings and equipment while the New South Wales Department of Education provides teachers, the curriculum and related services and is reimbursed by the Commonwealth for these services. The Commonwealth subsidises the cost of transporting children to and from their schools and classes. Northern Territory - The Commonwealth provides financial support to the centre established by the Slow Learners' Association Inc., and also meets the costs of the special schools and classes on behalf of the Commonwealth by the South Australian Education Department The Commonwealth also subsidises the cost of transporting children to and from their schools and classes. {: type="1" start="5"} 0. (a) New South Wales- {: type="a" start="i"} 0. Moderately Intellectually Handicapped: 2,600 {: type="i" start="ii"} 0. Mildly Intellectually Handicapped: 7,700 1. Total: 10,300 Victoria - There are 1.374 children in special schools and 684 children in classes for slow learners. There are 1.780 children in Day Training Centres. Queensland- The Queensland " Education Department states that without a survey involving the individual examination of all mentally handicapped children in the State, it would not be possible to answer this question. The Department further states that such a survey is not feasible at the present time. South Australia - 908 mentally retarded children are enrolled in Education Department Centres in South Australia. All eligible children are enrolled in Education Department special schools if their parents request such enrolment Western Australia - {: type="i" start="i"} 0. 1,825 educable children are in special classes 1. 630 trainable children are in special classes Tasmania - {: type="i" start="i"} 0. As at August 1, 1968: Enrolments of special schools for slow learners 243; for the moder ately retarded 247; Total, 490. 1. The State Education Department considers that the range and number of special schools are adequate for meeting Tasmania's needs at present. Although most schools have small waiting lists, admission delays are expected to be of short duration. It would appear that waiting lists will be reduced as more places become available in hostels. The Tasmanian Government sees as one of its most urgent needs 'in the field the increase in resources in primary and high schools for helping those mentally retarded children who would not be suitably placed in special schools. Australian Capital Territory - {: type="a" start="i"} 0. Moderately intellectually handicapped: 40 {: type="i" start="ii"} 0. Mildly intellectually handicapped: Primary 101; Secondary 196. Northern Territory - {: type="a" start="i"} 0. Moderately intellectually handicapped: 25 {: type="i" start="ii"} 0. Mildly intellectually handicapped: Primary 50; Secondary 25. In addition there are six children at residential institutions interstate. {: type="1" start="5"} 0. (b) In the absence of common definitions, meaningful percentages cannot be provided. 1. New South Wales - The number is not known. Victoria - Education Department figures only: 73 pupils. Queensland - The Queensland Education Department states that without a survey involving the individual examination of all mentally handicapped children in the State, it would not be possible to answer this question. The Department further states that such a survey is not feasible at the present time. South Australia - There is no information about the number of children living 20 or more miles from the nearest special school. It is likely that a few children living in remote areas, or because of the wishes of parents, do not come under notice. A recent survey in two inspectorial districts discovered four additional mentally retarded children. Western Australia - About 60 children are known to be in this category. Of these 35 attend special schools. Tasmania- Approximately 50 eligible children live more than twenty miles from their nearest special schools. Australian Capital Territory - No children live more than 20 miles from the special school or class. Northern Territory - The information on the distance pupils live from the special schools they attend in the Northern Territory is as follows: Darwin Occupation Centre - Five out of 20 children live beyond 20 miles from Darwin. Alice Springs Occupation Centre - All nine children live within 20 miles of Alice Springs. Information is not available concerning children in special classes. {: type="1" start="7"} 0. New South Wales- This information is not known. Victoria- Not known by the State Education Department. Queensland- The Queensland Education Department states that without a survey involving the individual examination of all mentally handicapped children in the State, it would not be possible to answer this question. The Department further states that such a survey is not feasible at the present time. South Australia - No children who attend the South Australian Department's special schools are accommodated in hostels at present. Western Australia - {: type="a" start="a"} 0. 26 1. 42% Tasmania - {: type="a" start="a"} 0. 39 1. 78% Australian Capital Territory - {: type="a" start="a"} 0. None 1. Nil Northern Territory - {: type="a" start="a"} 0. None 1. Nil {:#subdebate-62-1} #### Burdekin River Development (Question No. 1528) {: #subdebate-62-1-s0 .speaker-6U4} ##### Mr Whitlam: asked the Prime Minister, upon notice: {: type="1" start="1"} 0. Did the Queensland Parliament in December 1949 pass the Burdekin River Development Act establishing the Burdekin River Authority and authorising an agreement with the Commonwealth under which the Commonwealth could appoint up to half the members of the Authority, excluding the Chairman. 1. On what dates, by what means and with what results have the Commonwealth and Queensland discussed the agreement authorised by the Act. {: #subdebate-62-1-s1 .speaker-KH5} ##### Mr Gorton:
LP -- I supply the following answer to the honorable member's question: {: type="1" start="1"} 0. Yes. However, the appointment of members of the Authority by the Commonwealth was to be . . in consideration of the Commonwealth affording financial assistance in the construction, maintenance, operation, protection, management, and control of works authorised by this Act and towards the expenses, charges, and other costs incurred in the execution of this Act . . . '. 1. Since the Commonwealth has not undertaken to provide the financial assistance referred to above, the question of implementing the terms of the Agreement has not arisen. However, the Commonwealth has agreed to a request from the Queensland Government to assist the State to undertake investigations for a re-appraisal of the Burdekin River scheme, without any commitment to Commonwealth financial assistance to any resulting projects. {:#subdebate-62-2} #### Taxation Grades (Question No. 1611) {: #subdebate-62-2-s0 .speaker-6U4} ##### Mr Whitlam: asked the Treasurer, upon notice: {: type="1" start="1"} 0. What was the (a) number and (b) percentage of taxpayers in each of the last 14 years in each of the grades of actual income listed in schedule 1.1 of successive reports submitted by the Commissioner of Taxation and volumes of taxation statistics prepared as supplements to his reports. 1. What percentage of (a) their actual incomes and (b) total income tax revenue was paid by taxpayers in each of those grades in each of those years. 2. Is he able to say what were the comparable figures for taxpayers and tax revenues in those grades in (a) Britain, (b) the United States and (c) Canada. {: #subdebate-62-2-s1 .speaker-009MA} ##### Mr McMahon:
LP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. and (2) The grades of income used in Schedule 1.1 of Taxation Statistics 1966-67' were not the same as those used in the tabulations of statistics for some earlier years. Accordingly it has not been possible to provide statistics which are based on the same grades of income for each of the years mentioned. The available information is set out in Attachments 1 to 5 in the grades of income nearest to those used in the 1966-67 Schedule. 1. It is not possible to derive figures for Britain, the United States of America and Canada which are fully comparable with those for Australia. For one thing there are difficulties in the way of determining what level of income in one country would be comparable with a given level of income in another country. Because of differences in income distributions and in levels of real income it cannot be assumed that incomes on the basis of current rates of exchange are in fact comparable. Further, while statutory rates of tax apply to taxable incomes the concept of what constitutes taxable income differs from country to country. The choice of the tax unit, whether the individual or the married couple, is also relevant in this context. In addition, deductions which are allowed from actual income to arrive at taxable income, such as for dependants, medical expenses, etc., vary in both nature and amounts. Apart from these and other complications, account needs to be taken of differences in the roles played by governments, not just as regards their importance in the economy in an aggregate sense, but also in terms of the nature of Government expenditurethat is, what the taxpayer gets in return for the taxes he pays. Attachments 6 to 20 set out information for Britain, the United States of America and Canada along similar lines to that for Australia. The information has been compiled from official publications of the countries concerned and should be interpreted in accordance with explanations contained therein, and in the light of the foregoing general observations. {:#subdebate-62-3} #### Development of Poorer Countries (Question No. 1597) {: #subdebate-62-3-s0 .speaker-JWI} ##### Mr Fox: asked the Minister for External Affairs, upon notice: {: type="1" start="1"} 0. Will he give consideration to the establishment of an institute of development studies at an Australian university for the purpose of (a) the collection of information and research on economic, demographic, political and sociological aspects of development in poorer countries, with particular reference to the potential Australian role and (b) examining the need for the training and recruitment of skilled people for long-term careers in international development to supplement the present short-term programme for the training and provision of experts for the Colombo Plan and the United Nations. 1. Will he also give consideration to increasing Government subsidies to the Overseas Service Bureau for the Australian volunteers abroad programme which is at present limited to150 Australians serving overseas. {: #subdebate-62-3-s1 .speaker-JXI} ##### Mr Freeth:
LP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. Many universities and other institutes of advanced education already provide facilities for collecting information and research in fields relating to development. I do not believe a separate and new institute of development studies needs to be established by the Government, but it is always open to a university to reconsider how it is grouping or organising its own activities. It does not appear to me necessary at present to establish a specialised institute to examine the need for the training and recruitment of skilled persons for long term careers in international development. 1. The Australian Government has provided some financial assistance to the Overseas Service Bureau since 1965, but it has been the Government's and the Bureau's wish that the independent and voluntary character of the Bureau and its activities be preserved. The Bureau has been sponsored by over 100 church, youth, and community groups and is also supported by contributions from individuals and some trusts. The Government has met in full each request of the Bureau for financial assistance in accordance with the agreed formula. The Bureau itself has pointed out that the supply of volunteers is restricted more by the number of suitable persons available than by shortages of funds. Communism in Asia (Question No. 1605) {: #subdebate-62-3-s2 .speaker-KDP} ##### Dr Everingham: asked the Minister for External Affairs, upon notice: {: type="1" start="1"} 0. What persons are employed and for how long has each been so employed, by the Government to interpret policies of Asian Communist parties which are (a) inpower. (b) in rebellion or (c) in a peaceful minority in their respective countries. 1. What are the respective linguistic standards of these employees in relevant languages. 2. Through what channels and what other individuals does each of them communicate with him. {: #subdebate-62-3-s3 .speaker-JXI} ##### Mr Freeth:
LP -- It is not within my competence to furnish information relating to the persons employed by the Government as a whole on the study of a particular subject matter. As far as the Department of External Affairs itself is concerned, it is not desirable to make public details relating to individual officers who may be engaged on the study of particular countries or regions. {:#subdebate-62-4} #### Titanium (Question No. 1562) {: #subdebate-62-4-s0 .speaker-KDV} ##### Mr Charles Jones:
NEWCASTLE, VICTORIA · ALP asked the Minister for National Development the following question, upon notice: >What are the (a) known and (b) estimated deposits of titanium in Australia. {: #subdebate-62-4-s1 .speaker-KDT} ##### Mr Fairbairn:
LP -- The answer to the honourable member's question is as follows: {: type="a" start="a"} 0. No precise figure can be given with respect to proved reserves of titanium in Australia. Reserve figures of rutile and ilmenite (the principal ores of titanium) are those collated from data made available by operating companies, and as such are probably equivalent to measured and indicated reserves. 1. Rutile (96% Ti02). Reserves of rutile based on a cut-off grade of 0.25% rutile in the ground, are estimated to be about 6 million tons. Reserves are virtually confined to the mineral sand deposits of the east coast. Ilmenite (55%Ti02). Ilmenite reserves in Western Australia are estimated to be about15 million tons. In addition, extensive deposits of ilmenite are known to occ along the central Queensland coast and on the offshore islands viz. Fraser and Curtis Islands. If these deposits are proved to be economic, overall ilmenite reserves would be almost doubled. {:#subdebate-62-5} #### Australian Atomic Energy Commission (Question No. 1567) {: #subdebate-62-5-s0 .speaker-6U4} ##### Mr Whitlam: asked the Minister for National Development the following question, upon notice: {: type="1" start="1"} 0. Did the Atomic Energy Commission, in an advertisement in the Australian on 1 February 1969, state that the Physical Metallurgy Group of the Australian Atomic Energy Commission Research Establishment is equipped with a total of four electron microscopes. 1. How many (a) research scientists, (b) experimental officers and (c) technicians were actually on the strength of the Physical Metallurgy Group in each year since 1960. 2. Has the Commission at any time attempted to sell any of its electron microscopes. {: #subdebate-62-5-s1 .speaker-KDT} ##### Mr Fairbairn:
LP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. Yes. The Physical Metallurgy Group at the Research Establishment by that time had just received its fourth instrument- a special scanning electron microscope. Although the four electron microscopes are located in the Physical Metallurgy Group laboratory, that group is not the sole user. Electron microscopy is used in many projects within the Commission's overall research programmes. However, for efficiency, all electron microscopes are located in one centre where they use common dark rooms, specimen preparation rooms and other facilities. Thus only one group of highly competent 6taS on electron microscopy is required. {: type="1" start="2"} 0. The strength of the Physical Metallurgy Group as at 31 May each year since 1960 was as follows: {: type="1" start="3"} 0. No. All of these instruments are being used for the research programme. {:#subdebate-62-6} #### Australian Atomic Energy Commission (Question No. 1566) {: #subdebate-62-6-s0 .speaker-6U4} ##### Mr Whitlam: asked the Minister for National Development the following question, upon notice: {: type="1" start="1"} 0. Which group within the Australian Atomic Energy Commission Research Establishment was responsible for the design and research programme of the new block of high activity handling cells. 1. How many research scientists comprised this group, and how many have resigned since the start of the programme involving the new block. 2. Is the two year delay between the official opening and the effective operation of the new block due to disruption of the research- programme centred on that block. {: #subdebate-62-6-s1 .speaker-KDT} ##### Mr Fairbairn:
LP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. The Chemical Engineering Section of Materials Division was responsible for the design concept of the new block of. high activity handling cells, but the actual design was carried out by the French firm Saint-Gobain Techniques Nouvelles with supervision by project engineers from the Engineering Services Section of Operations Division. The new cells were not built solely for one research programme but as a flexible facility to meet the needs of any future Commission programme. No single group is responsible for the research programme in the new cells since it involves a number of research divisions. The operation of the cells is the responsibility of the Metallurgical Services Branch. The immediate programmes of work in the new cells are: {: type="a" start="a"} 0. Separation of isotopes for medical use from high activity fission products. 1. Post-irradiation examination of fuel pins for water cooled reactors, and 2. Post-irradiation evaluation of zirconium alloy materials which are used for cladding and pressure tubes in water cooled reactors. Future work in the cells will include chemical re-processing of fuels, examination of irradiated fuel elements, development of methods for fixation of wastes of high level of activity etc. {: type="1" start="2"} 0. Six research scientists are employed in the groups responsible for the design of and research programme in, the new hot cells. These are supported by numerous experimental officers and technicians. There have been two resignations of research scientists from the Chemical Engineering Section which was involved in the design of the new hot cell block, but in the same period two research scientists have been recruited and another is under appointment. There have been no resignations of research scientists from the groups responsible for the research programmes in (a), (b) and (c) above. 1. There has been no disruption of the research programmes outlined above involving the new hot cell block. As explained on 25th February, 1969, in the answer to a question by the Leader of the Opposition asked on November 28, 1968, a considerable amount of work is required to mount research programmes which involve very high levels of radioactivity. This includes the provision of specialist in-cell services, and the design and construction of specialist in-cell equipment. {:#subdebate-62-7} #### Royal Australian Navy: Papua and New Guinea (Question No. 1585) {: #subdebate-62-7-s0 .speaker-6U4} ##### Mr Whitlam: asked the Minister for the Navy, upon notice: >What are the differences in pay and allowances for (a) Australians and (b) New Guineans who are serving together iri Royal Australian Navy ships and establishments. {: #subdebate-62-7-s1 .speaker-009MM} ##### Mr Kelly:
Minister for the Navy · WAKEFIELD, SOUTH AUSTRALIA · LP -- The answer to the honourable member's question is as follows: However whilst PNG Midshipmen are training in Australia they are paid an allowance to bring their pay up to the rate paid to RAN Midshipmen. {: .page-start } page 151 {:#debate-63} ### APPRENTICES RAN - 1st year under IS years $11.81 per week PNG- 1st year .. .. $3.00 per week Difference .. .. $8.81 per week In addition to their basic rates of active pay RAN officers and sailors are also paid, if eligible, Marriage Allowances of $1.80 daily. RAN sailors living on board ship are also paid an allowance called Hard Lying Money of 32 cents per day. A single member of the RAN who is not victualled and accommodated in a ship or establishment is paid Living Out Allowance at the rate of SI. 17 per day. Any member of the PNG Division whether married or single who is not victualled and accommodated is paid Living Out Allowance at the rate of 54 cents per day. PNG sailors who are serving in RAN ships in Australian waters or serving on the Australian mainland ure paid an additional allowance, known as Mainland Allowance, at the rate of 90 cents per day. This allowance is designed to cover the extra needs of the sailor whilst he is serving outside his normal environment. The pay rates for the PNG Division are based on those payable to the local Constabulary in Une with the Government's generally accepted principle that wages and salaries both public and private must have regard to the capacity of the local economy to pay and social equality in the indigenous community. {:#subdebate-63-0} #### Royal Australian Navy (Question No. 1505) {: #subdebate-63-0-s0 .speaker-KUX} ##### Mr Stewart: asked the Minister for the Navy, upon notice: {: type="1" start="1"} 0. What are the recreation leave entitlements of Royal Australian Navy personnel who are (a) shore based and (b) serving at sea. 1. How long have these leave entitlements been effective. 2. Are RAN personnel granted any leave or extra pay entitlement for working weekends and public holidays. {: #subdebate-63-0-s1 .speaker-009MM} ##### Mr Kelly:
LP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. (a) Shore Based In Australia- 4 weeks a year plus additional leave up to 2 weeks if on flying duty or serving in a remote area. In South East Asia (other than Vietnam) - 6 weeks a year. Other overseas posts - leave in accordance with local practice plus 2 weeks a year foreign service leave, (b) Sea-going 6 weeks a year. {: type="1" start="2"} 0. Since 1948. 1. Compensation is included in the annual recreation leave entitlement to cover working on duty over weekends and public holidays throughout the year. Public holidays which do not occur during a member's leave may be granted as short leave at the discretion of the Captain where the member is not required for duty. {:#subdebate-63-1} #### Petroleum Search ' (Question No. 1549) {: #subdebate-63-1-s0 .speaker-6U4} ##### Mr Whitlam: asked the Minister for National Development, upon notice: {: type="1" start="1"} 0. Are companies which seek to obtain subsidies under the Petroleum Search Subsidy Act for geological and geophysical investigations required to submit detailed statements of their expenditures in respect of these investigations. 1. If so, do such statements include the salaries of scientists engaged by the company in the investigations. 2. For each class of appropriate scientist is there a maximum salary rate that the Commonwealth will accept for the purpose of calculating subsidy payments. 3. If so. what are the salary rates allowable for each class of scientist concerned, and what are the salary scales paid by the Commonwealth to comparable scientists in the Bureau of Mineral Resources. {: #subdebate-63-1-s1 .speaker-KDT} ##### Mr Fairbairn:
LP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. Companies which apply for subsidy under the Petroleum Search Subsidy Act 1959-1969 for drilling operations and geophysical surveys (there is no subsidy for geological investigations) are required under the provisions of the General Conditions to the Agreement to submit a statement certified by the Operator's auditors showing in detail the costs incurred. The General Conditions form part of the Agreement between the Commonwealth and the Operator in all subsidised operations and these requirements are provided for under section 9 of the Act. 1. The General Conditions provide for inclusion in the allowable costs, supervision in the field and the processing, interpretation and presentation of the results of the operation in report form. Geologists, geophysicists and petroleum engineers employed by the Operator are involved in these activities and their salaries and other costs associated with their part in the operation may be included in the cost statement. Details of these salaries are provided by the applicants for subsidy on a confidential basis. In the case of contractors, who also .employ scientists, the salaries are included in the contract charges and are not specified separately. {: type="1" start="3"} 0. In calculating subsidy the Commonwealth policy is te allow the salary paid by the operating company provided that it does not exceed the rate charged by consultants in the same profession. 1. Although detailed cost estimates may be included in the applications for subsidy and are available in the final cost statements these figures have always been considered strictly confidential. Only the total cost of an operation is available for release. I believe it would be unwise to release details of company personnel salaries as it would constitute a breach of trust. Currently the rates for consultants are of the order of $100 per day but they may range above or below this figure. Rates payable to company geologists, geophysicists and petroleum engineers in subsidised surveys range from $30 to $108 per day. For the calculation of subsidy payments $100 is the maximum rate allowed at the present time. It is not possible to compare realistically the rates paid to company personnel and. Bureau scientists because the conditions and work requirements of the two groups are rarely comparable. Australian Water Resources Council (Question No. HOO) {: #subdebate-63-1-s2 .speaker-6U4} ##### Mr Whitlam: asked the Minister for National Development, upon notice: {: type="1" start="1"} 0. When and where has the Water Resources Council met. 1. What requests or suggestions were made at these meetings for legislative or administrative action by (a) the Commonwealth, (b) the Territories and (c) the States. {: #subdebate-63-1-s3 .speaker-KDT} ##### Mr Fairbairn:
LP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. The Australian Water Resources Council met on the dates and in the places listed below: Meeting Date Place {: type="1" start="2"} 0. The Australian Water Resources Council is an advisory and consultative body of Commonwealth and State Ministers and public pronouncements are not necessarily made on all matters that arc discussed. Press statements have generally been issued on behalf of the Council by me as Chairman following meetings. These statements indicate important matters discussed. {:#subdebate-63-2} #### Australian Forestry Council (Question No. 1099.1 {: #subdebate-63-2-s0 .speaker-6U4} ##### Mr Whitlam: asked the Minister for National Development, upon notice: {: type="1" start="1"} 0. What requests or suggestions were made at the meeting of the Forestry Council in Canberra in February for legislative or administrative action by (a) the Commonwealth, (b) the Territories and (c) the States. {: #subdebate-63-2-s1 .speaker-KDT} ##### Mr Fairbairn:
LP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. The Australian Forestry Council is an advisory and consultative body of Commonwealth and State Ministers and public pronouncements are not necessarily made on all matters that arc discussed. Press statements have generally been issued on behalf of the Council by me as Chairman following meetings. These statements indicate important matters discussed. Northern Development Conferences (Question No. 1401) {: #subdebate-63-2-s2 .speaker-6U4} ##### Mr Whitlam: asked the Minister for National Development, upon notice: >On what dates and at what places had there been conferences of Commonwealth and State > >Ministers and > >Officials concerned with northern development before the current Ministers mct at Port Hedland on 10th April. Mi* Fairbairn - The answer to the honourable member's question is as follows: >The arrangements between the Commonwealth and the States of Western Australia and Queensland for liaison and co-ordination of northern development activities provide for consultation on both a formal and informal basis. > >The last formal meeting of Commonwealth and Suite Ministers and officials concerned with northern development was held at Port Hedland on 9th April 1969. Previous formal meetings "of Ministers, with officials also present, were held in Canberra on 7th May 1964 and 27th August 1965 and in Brisbane on 11th July 1967. Between these meetings continuity has been maintained as necessary by direct contact between myself and the appropriate Commonwealth and/or State Ministers. > >At officer level, liaison and co-ordination between the Commonwealth and States is maintained on a continuing basis by means of designated liaison officers. In the case of the Commonwealth this is the Director of the Northern Division of my Department, in Queensland the Co-ordinator General of Public Works and in > >Western Australia the Director of Engineering. These three officers together with the officers from the Commonwealth concerned with the Northern Territory have met formally on one occasion in Canberra on 11th November 1965. Further separate formal meetings of officials have not been found necessary as these officials are in continuous contact on northern development matters. {:#subdebate-63-3} #### Judges' Salaries (Question No. 1595) {: #subdebate-63-3-s0 .speaker-6V4} ##### Mr Daly:
GRAYNDLER, NEW SOUTH WALES asked the Attorney-General, upon notice: >What increases in the salaries of judges of the (a) High Court of Australia, (b) Commonwealth Industrial Court, (c) Supreme Court of the Australian Capital Territory, (d) Supreme Court of the Northern Territory and (e) Commonwealth Conciliation and Arbitration Commission have been made since 1950. {: #subdebate-63-3-s1 .speaker-JRN} ##### Mr Bowen:
LP -- The answer to the honourable member's question is as follows: {:#subdebate-63-4} #### Vietnam (Question No. 1607) {: #subdebate-63-4-s0 .speaker-KDP} ##### Dr Everingham: asked the Minister for External Affairs, upon notice: {: type="1" start="1"} 0. What proposals or suggestions has Australia made, to whom, and through what channels for: {: type="a" start="a"} 0. reducing military activity, 1. promoting amnesty,, asylum or understanding between warring factions, and 2. promoting diplomatic, or political contact and settlement in Viet-Nam; 1. What responses have followed. {: #subdebate-63-4-s1 .speaker-JXI} ##### Mr Freeth:
LP -- The answer to the honourable member's question is as follows: >The Australian Government maintains consistent and close contacts with the Government of the Republic of Vietnam, with the Government of the countries assisting the Republic, and with other Governments on the entire range of issues relating to our objective of bringing about a just and lasting peace in which the people of South Vietnam are able to determine their own future free from external interference, threat, and terrorism. It would not be helpful in attaining this objective to reveal at this stage precise proposals or responses on the issues involved. Trade Agreements with the United States (Question No. 1525) {: #subdebate-63-4-s2 .speaker-6U4} ##### Mr Whitlam: asked the Minister for External Affairs, upon notice: {: type="1" start="1"} 0. What efforts have been made to conclude a trade agreement with the United States, Australia's largest trading partner, comparable to the agreements concluded with Britain and with Japan, Australia's next largest trading partners, in 1932 and 1957 and in 1957 and 1963 respectively. 1. With what other countries does Australia have bilateral trade agreements and when were they concluded. {: #subdebate-63-4-s3 .speaker-JXI} ##### Mr Freeth:
LP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. Discussions regarding a trade agreement were first held between the Australian and United States Governments in 1934, when the Reciprocal Trade Agreement Act of the United States was passed, giving the President the power to enter into trade agreements. Since that time there have been exchanges of views between the two Governments to arrive at a basis for negotiations but so far these have not been successful. However, trade relations between the two countries are governed by the various provisions of the General Agreement on Tariffs and Trade which was accepted by the Australian and United States Governments in 1947. 1. Australia has trade agreements with the following countries: - Bulgaria (1966), Canada (1925 and 1960), Republic of China (1968), Czechoslovakia (1936), France (1936), Greece (1940), Hungary (1967), Iceland (1952), Indonesia (1959), Israel (1951), Japan (1957), Republic of Korea (1965), Federation of Malaysia (1958), New Zealand (1933 and 1965), Philippines (1965), Poland (1966), Portugal (1930), Romania (1967), South Africa (1935), Spain (1950), Switzerland (1938), U.S.S.R. (1965), United Kingdom (1932 and 1957). Some of the above agreements are for all practical purposes superseded by mutual obligations Under the G.A.T.T. International Population Control (Question No. 1522) {: #subdebate-63-4-s4 .speaker-KDP} ##### Dr Everingham: asked the Minister for External Affairs, upon notice: >In view of the increasing deficit of food production per head of population in the world and the current annual expenditure of some 70,000 times as much on military budgets as on population crisis control, will he consider Australian initiative in setting up an international population control project based on humane, rational and voluntary educational, medical and economic measures. {: #subdebate-63-4-s5 .speaker-JXI} ##### Mr Freeth:
LP -- The answer to the honourable member's question is as follows: >Population problems are an area of major concern to the United Nations. Information about the nature and extent of the work undertaken by the United Nations and its specialised agencies may be found in the U.N. Document E/4486/Add. 1 and in the most recent report of the Population Commission E/4454. These documents are available in the Parliamentary Library. > >Australia is aware of the difficulties posed for the developing countries by rapid population growth especially where population pressures are already severe and standards of living are low. The Australian Government welcomes the growing awareness of this problem and of the need for action. > >The Australian Government supports research into population control and family planning and the provision by international agencies of technical advice and assistance, when requested, for national projects and programme dealing with family planning and population problems. At the same time the Government believes that the population problem is one for each country to approach in the light of its own social values and experience. > >For this reason, and because of the work already being done in the United Nations, an initiative of the kind suggested by the honourable member is not proposed. Rhodesia (Question No. 1493) {: #subdebate-63-4-s6 .speaker-6U4} ##### Mr Whitlam: asked the Minister for External Affairs, upon notice: {: type="1" start="1"} 0. Has an interdepartmental committee been established to consider the application of the Security Council resolutions concerning Rhodesia on 16th December 1966 and 29th May 1968. 1. On what dates has it met. 2. What imports and exports has it examined. 3. What imports and exports have been permitted after examination by the committee and on what grounds were they permitted. {: #subdebate-63-4-s7 .speaker-JXI} ##### Mr Freeth:
LP -- The answer to the honourable member's question is as follows: >There have been frequent interdepartmental consultations co-ordinated by the Department of External Affairs, to consider the successive Security Council resolutions on Rhodesia. Consultations have been held as required to discuss general and particular problems associated with the implementation of the Security Council resolutions. It would not be practicable to give dates for all consultations on these matters among Departments. > >The imports and exports which have been permitted have been those in accordance with the Customs Prohibited Imports and Prohibited Exports Regulations, gazetted on 10th April 1967 and on 19th December 1968. {:#subdebate-63-5} #### Public Service: Technical Officers (Question No. 1517) {: #subdebate-63-5-s0 .speaker-KXI} ##### Mr Webb:
STIRLING, WESTERN AUSTRALIA asked the Prime Minister, upon notice: {: type="1" start="1"} 0. Is there, in the Public Service, a method of adjusting salaries known as 'Salary on Promotion'. 1. Was this method used by the Public Service Board in recent adjustments made to Technical Officers. 2. Were anomalies caused by this technique which led to some persons on the same salary range prior to the agreed increases receiving varying amounts .is a result of the Public Service Board applying different principles to different individuals. 3. Will he investigate the position of **Mr N.** E. Motley, employed as a Technical Officer, Grade 1, in the National Materials Handling Bureau, Department of National Development, with a view to seeing that justice is done to all persons in the Technical Grades {: #subdebate-63-5-s1 .speaker-KH5} ##### Mr Gorton:
LP -- The Public Service Board has provided me with the following answers to the honourable member's questions: {: type="1" start="1"} 0. Yes. 1. and (3). lt is assumed that the honourable member is referring to the method of salary adjustment used in implementing Determination No. 142 of 1968 made by. the Public Service Arbitrator on 14th August 1968, with retrospective effect to the beginning of the first pay period which commenced on or after 22nd January 1968. This was the pay period commencing on 1st February 1968. Determination No. 142 is the Determination applying to the Technical/Drafting Grades of the Commonwealth Public Service. The method of adjustment agreed between the parties to the Determination was applied to all officers covered by the Determination who were employed immediately prior to and on the date of effect of the Determination, and all on the same salary received the same adjustment. Salaries of officers appointed or promoted to positions covered by the Determination on or after the date of effect of the Determination were adjusted by applying the normal rules for salary on appointment or promotion as if the new salary scale had in fact been in existence at the time of their appointment or promotion. Determinations having retrospective effect are consistently applied by the Board in this manner. The result is that different amounts of increase sometimes result for those appointed or promoted after the date of effect of the Determination, but this is a consequence of the backdating of the Determination. {: type="1" start="4"} 0. **Mr N.** E. Motley's position has been investigated, following representations made on his behalf by the Association of Architects, Engineers, Surveyors and Draftsmen of Australia. **Mr Motley** has been treated in accordance with the established practice in the Commonwealth Service and there is no evidence that any injustice was done to **Mr Motley** or any other person in a technical grade as a result of the salary adjustments arising from Determination No. 142 of 1968. {:#subdebate-63-6} #### Conciliation and Arbitration Act (Question No. 1561) {: #subdebate-63-6-s0 .speaker-2V4} ##### Mr Clyde Cameron:
HINDMARSH, SOUTH AUSTRALIA · ALP asked the Minister for Labour and National Service, upon notice: {: type="1" start="1"} 0. Is he able to say in what other countries of the English-speaking world it is lawful for a court to apply the labour injunctions provided for in section 109 of the Conciliation and Arbitration Act and the related contempt provisions contained in section 1 1 1 of the same Act. 1. Under these related contempt provisions has a trade union in Australia already been penalised by a fine of as much as $8,000 plus costs in respect of a one day stoppage and, under the same provisions, can a free man be penalised for exercising his sacred right to give or to withhold his labour power from the service of a fellow human being. {: #subdebate-63-6-s1 .speaker-JTP} ##### Mr Bury:
LP -- The answer to the honourable member's questions is as follows: {: type="1" start="1"} 0. It is not meaningful to make detailed point for point comparisons between industrial legislation operative in different countries whether they be English-speaking or not. As far as can be ascertained there is no English-speaking country with provisions directly comparable with sections 109 and 111 of the Conciliation and Arbitration Act. 1. No. {:#subdebate-63-7} #### Poverty (Question No. 1351) {: #subdebate-63-7-s0 .speaker-BV8} ##### Mr Calwell: asked the Prime Minister, upon notice: {: type="1" start="1"} 0. Has bis attention been drawn to an announcement by President Nixon on 15th March last that he intended to make' drastic cuts amounting to $US2,239m in the defence budget. 1. Was it hinted by the President that these vast savings might be used to help deal with poverty in the United States. 2. If so, will he follow the splendid example of President Nixon and apply any savings from a cut down on Australia's defence budget to the relief of poverty and the improvement of social service benefits to age, invalid and widow pensioners. {: #subdebate-63-7-s1 .speaker-KH5} ##### Mr Gorton:
LP -- The following answer is now supplied: {: type="1" start="1"} 0. I have been unable to identify an announcement on 15th March along these lines. However, on 14th March 1969 President Nixon made the following observations at a news conference: Incidentally, my understanding at this time, and I have seen the preliminary figures, is that the defence budget that Secretary Laird will present will be approximately$21/2 billion less than that submitted by the previous administration.' {: type="1" start="2"} 0. President Nixon went on to say: Whether after considering the defence budget and all of the other budgets that have been submitted, we then can move in the direction of either reducing the surcharge or move in the direction of some of our very difficult problems with regard to our cities, the problem of hunger and others - these are the options that I will have to consider at a later time.' {: type="1" start="3"} 0. The allocation of resources as between social welfare, defence and other national objectives will be fully considered by the Government when framing the 1969-1970 Budget. {:#subdebate-63-8} #### Parliament: Contempt (Question No. 1599) {: #subdebate-63-8-s0 .speaker-RK4} ##### Mr Hayden: asked the Prime Minister, upon notice: {: type="1" start="1"} 0. Did a joint select committee of the Federal Houses of Parliament in 1908 recommend the enactment of legislation investing the High Court of Australia with jurisdiction to try and punish specified contempts of Parliament. 1. Did Prime Minister Menzies in 1955 state that parliamentary contempt laws would be reviewed. 2. Is it a fact that no action has been taken so far on either the 1908 report or on the 1955 undertaking. 3. Will he consider action to transfer jurisdiction on parliamentary contempt matters to the High Court. {: #subdebate-63-8-s1 .speaker-KH5} ##### Mr Gorton:
LP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. Yes. 1. See answer to Question No. 1318 (Hansard 29 May 1969 p. 2562). 2. Legislation as recommended in 1908 has not been enacted. See also answer to Question No. 1318. 3. I have noted the Honourable Member's suggestion. {:#subdebate-63-9} #### Commonwealth Scholarships Board (Question No. 1495) {: #subdebate-63-9-s0 .speaker-6U4} ##### Mr Whitlam: asked the Minister for Edu cation and Science, upon notice: >What research has been conducted or commissioned by the Commonwealth Scholarships Board into (a) the success and (b) the characteristics of > >Commonwealth university scholars and (ii) Commonwealth advanced education scholars. {: #subdebate-63-9-s1 .speaker-QS4} ##### Mr Malcolm Fraser:
WANNON, VICTORIA · LP -- The answer to the question put by the Leader of the Opposition is as follows: >The secretariat of the Commonwealth Scholarships Board is provided by the Department of Education and Science (and was formerly provided by the Commonwealth Office of Education) which conducts a continuing programme of research and investigation into many aspects of the scholarship schemes administered by the Board. {: type="a" start="a"} 0. (i) In respect of Commonwealth University scholars the examination results of scholarship holders are surveyed annually. In the case of students holding Open Entrance awards this is done by means of an analysis of the progress each year of each annual intake. Investigations of progress are also carried out in respect of students who gain Later Year awards. In addition surveys are made from time to time of the performance of other groups of students engaged in university study. 1. (i) The characteristics of Commonwealth University scholarship holders are also kept under regular review. Data are obtained annually on the numbers of scholars in training, classified by sex, institution, course, stage of course and according to whether study is being carried out on a full-time or part-time basis. For students who receive living allowance information is obtained each year on their marital status and also on the level of their parents' income. 2. (ii) The Advanced Education Scholarship Scheme is relatively new but some studies have been made of the progress of scholars in the early years of their courses. These studies will continue. 3. (ii) Data on the characteristics of Advanced Education scholars are collected annually and are similar in content to those outlined in (b) (i), above. From time to time specific research projects and surveys are conducted in respect of particular groups of students. For example, recently a special survey was made of applicants for Mature Age Commonwealth University scholarships. The recent announcement of a variation in the selection method for Open Entrance University scholarships in Victoria followed an investigation in which the Matriculation results and subsequent university performance of students who attempted the Matriculation examination for the first time were compared with those of students repeating the Matriculation examination. {:#subdebate-63-10} #### Postmaster-General's Department, Western Australia (Question No. 1391) {: #subdebate-63-10-s0 .speaker-JZX} ##### Mr Collard: asked the Postmaster-General, upon notice: {: type="1" start="1"} 0. How many (a) houses and (b) residential blocks are (i) owned and (ii) leased by his Department in Western Australia in each of the centres of Geraldton, Carnarvon, Port Hedland, Broome, Derby, Wyndham, Kalgoorlie-Boulder, Esperance, Meekatharra and Merredin. 1. How many additional bouses are required at each centre to satisfy the present demands of married employees. 2. How many houses were built at each centre (a) last financial year and (b) this financial year to date. 3. How many are to be built at each centre in the coming financial year. {: #subdebate-63-10-s1 .speaker-KIF} ##### Mr Hulme:
Postmaster-General · PETRIE, QUEENSLAND · LP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. Houses and residential blocks owned and leased: - Houses - Geraldton 8, Carnarvon 8, Port Hedland 8, Broome 6, Derby 7, Wyndham 8, Kalgoorlie-Boulder 5, Esperance 1, Meekatharra 4, Merredin 7. Residential blocks - Broome 2, bur none at other centres. No houses or residential blocks are leased in these towns. {: type="1" start="2"} 0. Additional houses required to satisfy present demands: - Geraldton 3, Derby 1, Kalgoorlie-Boulder 6, Esperance 5, Merredin 1, Others nil. {: type="1" start="3"} 0. (a) Houses provided 1967/68:- Carnarvon 5, Port Hedland 4, Derby 3, Kalgoorlie 1, Meekatharra 1, Merredin 3, Others nil. {: type="a" start="b"} 0. Houses provided 1968/69:- Carnarvon 4, Port Hedland 4, Derby 1, Wyndham 2, Geraldton 2, Kalgoorlie 2, Others nil. {: type="1" start="4"} 0. Houses to be provided 1969/70:- Port Hedland 6, Derby 1, Kalgoorlie 3, Esperance 3, Others nil. These figures include some houses requisitioned in 1968/69 but which have not yet been taken over by the Department. {:#subdebate-63-11} #### Postal Department: Postmen's Salaries (Question No. 1536) {: #subdebate-63-11-s0 .speaker-5J4} ##### Mr Scholes:
CORIO, VICTORIA asked the Postmaster-General, upon notice: {: type="1" start="1"} 0. What was the average salary, including overtime, of postmen in Melbourne and Geelong in the 3 months prior to the reduction of the number of deliveries per day in those centres. 1. What has been the average income of postmen in these centres, including overtime, since the reduced deliveries were instituted. 2. Have there been any increases in the basic salary of postmen since the introduction of new delivery schedules. 3. How many postmen were employed in the Melbourne and Geelong areas before the introduction of the new schedules, and how many are now employed. {: #subdebate-63-11-s1 .speaker-KIF} ##### Mr Hulme:
LP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. The average salary per fortnight, including overtime, of postmen in Melbourne and Geelong, in the 3 months prior to the reduction of the number of deliveries per day in these centres was: The month of December has not been included because the allowances paid for the extra duty involved in the delivery of Christmas mails are abnormal. This is also true, but to a lesser degree, so far as January is concerned because of the payment in this month of some of the allowances earned over the Christmas period. {: type="1" start="2"} 0. The average income per fortnight of postmen in Melbourne and Geelong, including overtime, since the reduced deliveries were introduced, was $115.90 in March, 1969, and $116.73 in April, 1969. 1. There have been no increases in the basic salary of postmen since the implementation of new delivery schedules in Victoria, commencing on the 10th February, 1969. However, since the decision was made to introduce delivery of mail on a once daily basis, two variations to Postmen's salaries have been made, one on 7th November, 1968, and the other on 2nd January, 1969. These resulted in an average increase in the adult wage of $71 per annum in the first instance and $91 per annum in the second instance. 2. The number of postmen employed in Melbourne and Geelong before, and after, the introduction of the new schedules is as follows: {:#subdebate-63-12} #### Commonwealth Water Resources Programme (Question No. 1563) {: #subdebate-63-12-s0 .speaker-KID} ##### Mr Luchetti:
MACQUARIE, NEW SOUTH WALES asked the Minister for National Development, upon notice: {: type="1" start="1"} 0. How many applications for grants for projects under the Commonwealth Water Resources Programme were received from each Slate. 1. What was the (a) estimated cost of each project, and (b) total cost of all submissions from each State. 2. On what criteria are grants made, and on what basis is the percentage of Commonwealth grants determined. {: #subdebate-63-12-s1 .speaker-KDT} ##### Mr Fairbairn:
LP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. and (2) Details of submissions from the States for grants for projects under the National Water Resources Development Programme are as follows: Reports were only received on the first two projects. Reports were only received on the first two projects. {: type="1" start="3"} 0. Initially, grants were made to Queensland for the Emerald project which had been under study by the Commonwealth before the National Water Programme was instituted, and to Victoria for salinity control works which were urgently needed to assist in controlling water quality in the lower Murray. In selecting the remaining projects use was made of the 'crude rate of return' of each project, which is the estimated net increment in value of annual production at full development expressed as a percentage of the total capital cost. The so-called short list of projects selected for closer examination was compiled on this basis with two minor variations - the King and Mitchell River projects in Victoria, which were very similar in nature and scope, were grouped for comparative studies, and the Cressy-Longford Scheme in Tasmania, which was not quite next in rank, was selected for further study in the belief that unless such studies showed up an unexpected anomaly, a small contribution by the Commonwealth would be worth considering in the light of the importance placed by the State on what will represent the first community irrigation scheme in Tasmania. Two projects which were included in the 'short list' on the above basis, were subsequently omitted from the programme after more detailed studies had been carried out. There were no fixed criteria for determining the proportion of Commonwealth finance allocated to approved projects. This was determined in the light of the individual circumstances associated with each project. {:#subdebate-63-13} #### Public Service (Question No. 1088) {: #subdebate-63-13-s0 .speaker-6U4} ##### Mr Whitlam: asked the Prime Minister, upon notice: {: type="1" start="1"} 0. To which Commonwealth authorities can public servants transfer without reduction or loss of superannuation rights. 1. From which Commonwealth authorities can employees transfer to the Commonwealth Service without reduction or loss of superannuation rights. 2. Between which Commonwealth authorities can employees transfer without reduction or loss of superannuation rights. 3. In what cases and to what extent can Commonwealth employees retain Commonwealth superannuation benefits if they transfer to (a) State, (b) semi-government, (c) local government or (d) private employment. 4. In what cases and to what extent can (a) State, (b) semi-government (c) local government or (d) private employees who become Commonwealth employees obtain Commonwealth superannuation benefits in respect of their- previous employment. {: #subdebate-63-13-s1 .speaker-KH5} ##### Mr Gorton:
LP -- In answer to the honourable member's questions, the Treasurer has advised me as follows: {: type="1" start="1"} 0. A Commonwealth public servant who is contributing under the Superannuation - Act 1922- 1969 and who transfers to full-time employment with any of the Commonwealth authorities that have been defined or prescribed as 'approved authorities' for the purposes of the Act, may continue as a contributor under the Act with no reduction or loss of rights. 'Approved authorities' for the purposes of the Act are listed in Schedule A below. A permanent officer of the Commonwealth Public Service who transfers to full-time employment with a Commonwealth authority or is appointed to a statutory office in relation to which the Officers' Rights Declaration Act 1928-1969 applies may, if he elects to do so, retain his existing and accruing superannuation rights under the Commonwealth Superannuation Act and continue to contribute under the Act on the basis of the salary applicable to him immediately prior to the date of transfer, as adjusted by awards or determinations affecting that salary from time to time. A list of authorities and offices covered by these arrangements has been provided by the Public Service Board and appears as Schedule B below. {: type="1" start="2"} 0. Persons employed by an 'approved authority' (as defined in the answer to (1)) and contributing under the Commonwealth Superannuation Act who transfer to the Public Service of the Commonwealth may do so without reduction or loss of rights under the Act. A person who, immediately before becoming an employee within the meaning of the Commonwealth Superannuation Act, was a contributor to - the Papua and New Guinea Superannuation Fund, established by the Superannuation (Papua and New Guinea) Ordinance 1951-1960 of the Territory of Papua and New Guinea; the Superannuation Fund, established by the Superannuation Ordinance 1928-1955 of the Territory of New Guinea; the Superannuation Fund of the Commonwealth Banking Corporation; the Superannuation Fund of the Reserve Bank of Australia; or the Pilots' Contribution Account maintained by the Australian National Airlines Commission. may elect, within 3 months after the date of bis becoming an employee, to purchase with the refund of contributions receivedfrom the former scheme, fully paid-up units of pension in the Commonwealth Superannuation Scheme. A person who has a vested or contingent right to a pension (other than a widow's pension' under the Defence Forces Retirement Benefits Act 1948- 1968), superannuation allowance or gratuity under any other Commonwealth Act (not including the Repatriation Act) may, within 12 months of becoming an employee of the Commonwealth, elect to contribute under the Commonwealth Superannuation Act for the difference between the actuarial value of that right and the benefits to which he would otherwise be entitled to contribute. Should the actuarial equivalent of that right exceed the benefits to which he would otherwise be entitled to contribute, he may not contribute under the Commonwealth Superannuation Act. {: type="1" start="3"} 0. A person employed by an 'Approved authority' (as defined in the answer to (1)) who is contributing under the Commonwealth Superannuation Act may transfer to another 'approved authority' without loss of rights under the Act. 1. Commonwealth employees contributing under the Commonwealth Superannuation Act who resign to take up State, semi-government, local government or private' employment are entitled to a refund of the contributions made by them to the Superannuation Fund. Legislation governing the operations of State Public Service superannuation schemes includes provisions by which a former contributor under the Commonwealth Superannuation Act may apply the amount of bis tefund towards the purchase of paid-up benefits in the State scheme joined by him. 2. (a) (b) and (c) A person who has a vested or contingent right to a pension, superannuation allowance or gratuity under any State Act may, within twelve months of becoming an employee of the Commonwealth, elect to contribute under the Commonwealth Superannuation Act for the difference between the actuarial value of that right and the benefits to which he would otherwise be entitled to contribute. Should the actuarial equivalent of that right exceed the benefits to which he would otherwise be entitled to contribute, he may not contribute under the Commonwealth Superannuation Act. The Commonwealth Superannuation Act also permits a person who, immediately before becoming an employee within the meaning of the Act, was a contributor to a State Public Service Superannuation Fund, or other prescribed Fund, to elect, within three months after the date of his becoming an employee, to purchase with the refund of contributions received . frorn the former scheme, fully paid-up units of pension in the Commonwealth Superannuation Scheme. The State, semi-government and local government superannuation schemes to which these provisions apply include the following: the Public Service Superannuation Funds of each of the six States; the Electricity Commission Provident Fund, established by the State Electricity Commission constituted by the State Electricity Commission Act 1958 of the State of Victoria; the Government Railways Superannuation Account, established by the Government Railways Act, 1912-1958 of the State of New South Wales; the Local Government Provident Fund, established by the Local Government and Other Authorities (Superannuation) Act 1927-1959 of the Slate of New South Wales; the Melbourne and Metropolitan Board of Works Superannuation Scheme, established under the Melbourne and Metropolitan Board of Works Act 1958 of the State of Victoria; and the Melbourne Harbour Trust Superannuation Account, established under the Melbourne Harbour Trust Act 1958 of the State of Victoria. {: type="a" start="d"} 0. Nil. But it should be noted that, providing a person becomes an employee within the meaning of the Commonwealth Superannuation Act at least twenty years before he will attain his selected age for retirement,he is able to contribute for the maximum pension according to his salary thus attracting a full employer supplement notwithstanding that he will not spend his full working life with the Commonwealth. {: #subdebate-63-13-s2 .speaker-6U4} ##### Mr Whitlam: asked the Minister for the Army, upon notice: How many rounds have been fired at the Holsworthy artillery and field firing ranges in each of the last 10 years. {: .page-start } page 160 {:#debate-64} ### SCHEDULE A Australian Atomic Energy Commission Australian Apple and Pear Board Australian Broadcasting Commission Australian Canned Fruits Board Australian Capital Territory Electricity Authority Australian Coastal Shipping Commission Australian Dairy Produce Board Australian Egg Board Australian Honey Board Australian Institute of Aboriginal Studies Australian Meat Board Australian National Airlines Commission Australian National University Australian Stevedoring Industry Authority Australian Tobacco Board Australian Tourist Commission Australian Wheat Board Australian Wine Board Australian Wool Board Canberra College of Advanced Education Canberra Community Hospital Board Commonwealth Bureau of Roads Commonwealth Scientific and Industrial Research Organisation Commonwealth Serum Laboratories Commission Dried Fruits Control Board Export Payments Insurance Corporation Housing Loans Insurance Corporation National Capital Development Commission National Standards Commission Northern Territory Port Authority Overseas Telecommunications Commission (Australia) Snowy Mountains Hydro-electric Authority Trustees of the Services Canteens Trust Fund Holsworthy Firing Ranges (Question No. 1371) {: #debate-64-s0 .speaker-KIM} ##### Mr Lynch:
LP -- The answer to the honour able member's question is as follows: >Records of the quantity of ammunition fired on Army ranges are not retained for any period longer than 12 months after the year in which the ammunition was fired. Records available for 1968 show that some 37,851 rounds of artillery, mortar and anti-tank ammunition were fired at the Hols worthy Artillery Range during that year. The breakup of the particular type of ammunition fired is as follows: The figure for 1968 quoted above could probably be used as a guide to the average firings for the years 1965, 1966 and 1967, but approximate figures for the years 1959 to 1964 could not be estimated satisfactorily. However the usage in those years would have been considerably below the 1965-69 level. {:#subdebate-64-0} #### Firearms (Question No. 1487) {: #subdebate-64-0-s0 .speaker-KGH} ##### Mr Hansen: asked the Attorney-General, upon notice: {: type="1" start="1"} 0. Has he discussed the licensing of firearms with the State Attorneys-General. 1. Has he noticed the increasing number of crimes being committed by persons using rifles and shotguns. 2. If he has been unsuccessful to date in obtaining the co-operation of the States, will he, in the light of recent happenings, renew efforts to have uniform controls over the use and purchase of firearms. {: #subdebate-64-0-s1 .speaker-JRN} ##### Mr Bowen:
LP -- The answer to the honour able member's question is as follows: {: type="1" start="1"} 0. Yes. 1. There are no statistics available in this area to enable me to state with any exactitude if crimes of this nature are increasing. There may well be an increase but I doubt if the ratio of crimes of this nature to total criminal activity is increasing. 2. The administration of legislation relating to firearms does not fall within my Ministerial responsibility and the same is true of most, if not all, of Attorneys-General of the States. 1 am informed there is a proposal for a meeting of Commonwealth and State Ministers responsible for firearm legislation. {:#subdebate-64-1} #### Commonwealth Assistance to Schools (Question No. 1500) {: #subdebate-64-1-s0 .speaker-6U4} ##### Mr Whitlam: asked the Prime Minister, upon notice: {: type="1" start="1"} 0. On what dates and in what terms has each State last sought Commonwealth assistance for (a) government and (b) non-government schools. 1. On what dates and in what terms has the Commonwealth responded. {: #subdebate-64-1-s1 .speaker-KH5} ##### Mr Gorton:
LP -- The answer to the honourable member's question is as follows - {: type="1" start="1"} 0. and (2) The needs of education were discussed during the course of the Premiers' Conference in June 1966. It would not be practicable to summarise that discussion here but details are available in the published transcript of proceedings of the Conference. On 4th October 1968 the Premier of New South Wales wrote to me enquiring whether the Commonwealth would support an increase of $5m in his State's allocation under the borrowing programmes approved by the Loan Council for State works and housing in 1968-1969. The Premier stated that this increase was required to enable a supplementary school building programme to be undertaken. The Premier was informed that (he Commonwealth Government could not agree, at that stage of the year, to support in the Loan Council a request for such an increase because of: {: type="a" start="a"} 0. the large estimated increase in 1968-1969 in capital funds available to the States from the Loan Council borrowing programmes and from direct Commonwealth assistance; 1. the need to restrain the recent rapid growth in public authority expenditure - particularly public authority capital expenditure - in order to achieve a more appropriate balance between the public and private sectors and to ensure the preservation of a stable economy; 2. the implications in relation to other States and other areas of Government expenditure where, it could be argued, additional funds were equally required for various other improvements to services. On 14th November 1968 the Premier of New South Wales wrote to me about a request for additional Commonwealth funds for the Roman Catholic school system. The request came from the Federation of Catholic Parents and Friends' Associations. In the course of my reply of 26th February 1969, which was subsequently made public, I wrote - I note your view that despite the efforts of your Government to assist independent schools, more needs to be done if the non-Government sector of our dual system of education is to be maintained at a desirable standard. You referred to a noticeable drift of Roman Catholic children to Government schools. In the light of these trends, you asked me to consider supplementing the assistance which the States are able to provide from their own resources. I share your view that the financial problems of independent schools are important and of concern to all Australian governments. For its part, the Commonwealth Government appreciates the significant role played by independent schools in the education of young Australians and both by policy pronouncement and by programmes introduced, has demonstrated its willingness to provide direct assistance to these schools .... My colleagues and I are well aware of the particular problems with the running costs of independent schools and of the difficulties which many of them are experiencing in obtaining sufficient teachers and in paying them reasonable salaries having regard to salaries in Government schools. We have received representations from the Federal Catholic Schools Committee and have had discussions with members of that Committee. As a consequence we have undertaken to look carefully into ways in which the Commonwealth might assist these schools further as part of its policy of assisting both Government and independent school authorities to improve the quality of Australian education. However, anything the Commonwealth were to do would have significant budgetary implications and therefore must be considered with that aspect well in mind. The same situation applies to the specific requests for Commonwealth assistance contained in the resolution conveyed to you by the Federation of Catholic Parents and Citizens Associations. We will be considering the problems of independent schools further in the coming months and will bear in mind the support you have registered for some additional Commonwealth contribution to supplement what the States are now doing'. {:#subdebate-64-2} #### Education (Question No. 1551) {: #subdebate-64-2-s0 .speaker-JSU} ##### Mr Bryant: asked the Minister for Education and Science, upon notice: in each year since the beginning of the Commonwealth university scholarship scheme, what percentage of scholars has received (a) full living away from home allowance, (b) partial living away from home allowance, (c) full living at home allowance, (d) partial living at home allowance, (e) independent scholars allowance and (f) no living allowance. {: #subdebate-64-2-s1 .speaker-QS4} ##### Mr Malcolm Fraser:
WANNON, VICTORIA · LP -- The answer to honourable member's question is as follows: >Payment of living allowance under the Commonwealth university scholarship scheme is made subject to means test and only in the case of fulllime students. The numbers of Commonwealth University scholarship holders in receipt of living allowances, expressed as percentages of the total numbers of full-time scholars in training each year since the inception of the scheme, are as follows: {:#subdebate-64-3} #### Parliament House Staff (Question No. 1574) {: #subdebate-64-3-s0 .speaker-5J4} ##### Mr Scholes: asked the Prime Minister, upon notice: >Will he obtain from the President of the Senate and the Speaker of the House of Representatives answers to the following questions: > >How many persons are employed on the staff of Parliament House. > >How many of these employees are (i) casual and (ii) permanent. > >Are employees on the staff of the Parliament entitled to be members of a trade union or comparable Public Service or white-collar organisation. > >How are the salaries and conditions of these employees determined. > >Does any arbitration mechanism exist to decide wage levels and working conditions. > >If no arbitration mechanism exists, what means exist for claims by employees to be lodged and dealt with. > >If employees cannot be members of a union organisation, what assistance is available to employees in the preparation of a log of claims, legal representation in workers' compensation claims and in advocacy for alteration of wages and conditions of employment.' > >If no assistance is available, will steps be taken to ensure that employees of the Parliament have rights' and protection equal to that of other sections of the community. {: #subdebate-64-3-s1 .speaker-KH5} ##### Mr Gorton:
LP -- **Mr President** and **Mr Speaker** have supplied the following information in answer to the honourable member's question; {: type="a" start="a"} 0. Number of persons employed - Senate - 44 House of Representative - 60 Joint House - 186 (in session); 101 (in recess) Reporting staff- 41 Library - 60 {: type="a" start="b"} 0. (i) Temporary and casual (i.e. employed by the hour, by the day or for a limited duration such as during the session) employees - Senate - 16 temporary House of Representatives - 11 temporary, 4 casual Joint House - 85 casual (during session) Reporting Staff- 13 casual Library - 19 temporary, 6 casual {: type="i" start="ii"} 0. Permanent employees - Senate- 28 House of Representatives- 45 Joint House - 101 Reporting Staff- 28 Library - 35 {: type="a" start="c"} 0. Yes. 1. Under the provisions of the Public Service Act, salaries of Senate officers are determined by the President, salaries of House officers by the Speaker and salaries of the Joint House, Reporting staff and Library officers by the President and Speaker acting jointly. Officers receive the benefit of any salary Determinations of the Public Service Arbitrator affecting their particular designation or Division. The conditions of service of these officers are those prescribed by the Public Service (Parliamentary Officers) Regulations which are made by the Governor-General on the recommendation of the President and the Speaker. The conditions of employment are, in general, based on those applying throughout the Public Service, but modified in some areas to meet purely local conditions. Sessional staff of the Parliamentary Refreshment Rooms are employed under wages and conditions that are, in the main, based on the Liquor and Allied Trades Award (A.C.T.), plus a special loading of 121/2% on their wages to compensate for the short and uncertain duration of their employment. {: type="a" start="e"} 0. The normal procedure is open to a registered organisation of which parliamentary staff are members, to seek *a* determination on the salaries and/or working conditions of its members. 1. See answer to question (e). 2. See answer to question (c). 3. See answer to question (e). {:#subdebate-64-4} #### Overseas Aid (Question No. 1589) {: #subdebate-64-4-s0 .speaker-JTS} ##### Mr Kevin Cairns:
LILLEY, QUEENSLAND · LP asked the Minister for External Affairs, upon notice: {: type="1" start="1"} 0. What percentage of the Australian gross national product is provided in overseas aid to (a) Papua and New Guinea and (b) other countries. 1. Is it likely that the total amount provided in overseas aid could be raised to11/2 per cent of the gross national product. 2. Will he consider the appointment of an International Development Committee or Commission to advise the Government in formulating aid policy and programmes, such a Committee or Commission to represent, if possible, business, trade unions, professional bodies and overseas aid agencies. 3. Is it a fact that at present only about half the available quotas of goods now admissible from less developed countries at preferential rates of duty are being taken up by less developed countries because there is little demand in Australia for many of the goods to which preferential duties are now applied. 4. If so, is it possible to expand the list of goods so admitted. {: #subdebate-64-4-s1 .speaker-JXI} ##### Mr Freeth:
LP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. The table below shows the percentage of the Australian gross national product which has been provided in overseas aid to (a) Papua and New Guinea and (b) other countries in recent years. {: type="1" start="2"} 0. Not in the early future. 1. Many interested organisations and individuals make representations tothe Government or are consulted by it and have opportunity of offering their advice on foreign aid matters. The appointment of a special committee or commission to advise the Government would largely duplicate existing facilities. But at the same time, I recognise that changing situations and problems often require different measures to meet them, and I keep in mind the need to adapt our existing machinery as appropriate. 2. I have been advised that at present quotas actually taken up under the Australian system of tariff preferences for developing countries have fallen well short of the total concessions available. For the quota period January-June 1969, the available total was $24.1 million: of this, quotas actually taken up by importers amounted to $8.6 million. There is no one general reason for the shortfall. Lack of demand could be a factor. However, every concession in the schedule has been established as a result of requests by developing countries themselves, by Australian importers, or by exporters of the goods concerned. In many cases the requests might well be based on prospects for future growth in demand rather than any large-scale current demand. Again, the success of developing countries in exploiting the quotas depends on the energy and expertise with which they attempt it, and different countries have naturally bad differing degrees of success. 3. Since the scheme was introduced in 1966 the schedule of concessions has been progressively extended beyond its original coverage of 57 quota groups, with a total availability of $13.3 million per annum, to 187 quota groups with a total availability of $33.5 million. Further extensions to the schedule are continually being examined. {:#subdebate-64-5} #### Overseas Aid (Question No. 1603) {: #subdebate-64-5-s0 .speaker-RK4} ##### Mr Hayden: asked the Minister for External Affairs, upon notice: {: type="1" start="1"} 0. In answering my question No. 1355 (Hansard, 1st May 1969, page 1655) relating to the target recently set for economically advanced countries to provide 1 per cent of their gross national product as aid to under-developed countries, did he mean to imply that it may not be practical for Australia to achieve this target by 1972. 1. If so, what are the practical constraints operating on the Australian Government that will prevent it from allocating one-hundredth of our gross national product towards the poor nations of the world. 2. Has Government expenditure on defence increased sharply over the past few years so that Australian external economic aid as a proportion of defence expenditure has fallen from 18.25 per cent in 1963-64 to 13.46 per cent in 1967-68. 3. If so, why has defence expenditure been apparently constrained to a lesser extent than expenditure on overseas aid. {: #subdebate-64-5-s1 .speaker-JXI} ##### Mr Freeth:
LP -- The answer to the honourable member's questions is as follows: {: type="1" start="1"} 0. Yes. 1. The value of official external aid provided by the Government depends upon the resources available to the Government and the pressure of other demands on those resources. In deciding what proportion of its funds should be allocated to external aid, the Government must take into account all demands upon its funds as well as the requests of the governments of the less developed countries for economic assistance from Australia. The Government is sympathetic to the needs of developing countries for more external assistance and the rapid growth in Australia's aid expenditures over recent years testifies to this. Australia has supported resolutions on the aid volume target in various international bodies and has been able to do so because the target, as at present defined, includes the clause '. . . having regard to the special position of those countries which arc net importers of capital'. But the government has reservations about the value of setting arbitrary statistical targets for aid-giving which pay no heed to the form and quality of the assistance that is provided or the use to which il is put, and which do not take account of the fact that, just as the aid needs of developing countries might vary from time to time, so the ability of donor countries to provide aid can be affected by changing economic circumstances. 2. Yes. 3. External economic aid expenditures have been increasing at a faster rate than both total government spending and National Income for more than 10 years now. The fact that defence expenditure has increased at an even faster rate since 1963-64 reflects the Government's assessment of the needs of defence over this period. {:#subdebate-64-6} #### Vietnam (Question No. 1608) {: #subdebate-64-6-s0 .speaker-KDP} ##### Dr Everingham: asked the Minister for External Affairs, upon notice: {: type="1" start="1"} 0. Can he provide statistics showing the (a) numbers, (b) percentages relative to other population groups and (c) ages and sexes of (i) refugees, (ii) members of fighting services, (iii) civil servants including police, (iv) full-time school pupils and (v) pre-school children in (A) areas tinder Australian control, (B) areas under control of other non-Vietnamese, (C) areas under control of the Hanoi regime, (D) areas under the control of the National Liberation Front ; and (E) areas under control of the Saigon regime (I) at the time of Australia's first military intervention and (11) at present, in Vietnam. 1. What criteria determine that ti person (a) becomes and (b) ceases to be a refugee for the purposes of statistics listed under (0(0 above. 2. What figures has he to indicate the relative (a) morbidity, (b) mortality, (c) literacy, (d) crime rale, (e) prison population and (f) prostitution rate among any of the groups, referred to under (1) above. {: #subdebate-64-6-s1 .speaker-JXI} ##### Mr Freeth:
LP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. and (3) lt should be obvious that accurate and detailed statistics for all those areas and limes cannot be compiled in the conditions in Vietnam today. 1. The Ministry of Health, Social Welfare and Relief of the Republic of Vietnam regards as temporary refugees persons who come from territory occupied by the Viet Cong to areas controlled by the Government of the Republic and are accommodated in. temporary refugee camps pending return to their villages of origin or reestablishment at another location. They are regarded as having ceased to be refugees when they have returned to their home village or been re-established at another location. {:#subdebate-64-7} #### Fill Aircraft (Question No. 1403) {: #subdebate-64-7-s0 .speaker-6V4} ##### Mr Daly: asked the Minister for Defence, upon notice: {: type="1" start="1"} 0. What was the cost per aircraft quoted when Fill aircraft were ordered from the United States. 1. What is the estimated cost to Australia of all aircraft at this date. 2. What is the estimated cost of all aircraft at the estimated time of delivery. {: #subdebate-64-7-s1 .speaker-KEN} ##### Mr Fairhall:
LP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. As is well known, the arrangement entered into between the late **Mr Townley** and Mi McNamara was for a package deal involving provision of 24 Fill aircraft with ground support equipment, reconnaissance equipment, training and training devices and one year's initial spares at a general order of magnitude cost of approximately $US125m. {: type="1" start="2"} 0. As is equally well known there is a ceiling price to the flyaway cost of the aircraft: for the 24 this is SUS 142.8m. As has been explained on earlier occasions in the House, to this must be added the cost of escalation of labour and materials from April 1965, the cost of Australian configuration requirements and the cost of approved added capability modifications. The cost currently known under these heads amounts to SUS11.621m. 1. The uncertainties to which I have referred in the House on 28th May 1969, do not allow of an answer. {:#subdebate-64-8} #### Defence Bases (Question No. 1304) {: #subdebate-64-8-s0 .speaker-6V4} ##### Mr Daly: asked the Minister for Defence, upon notice: {: type="1" start="1"} 0. How many agreements have been entered into with foreign powers for the establishment of defence bases in Australian territories. 1. How many of these bases are for (a) research and (b) defence uses. 2. What are the names of the nations for whom the bases have been established. 3. Where is each of these bases located. 4. Is he abt? to say what was the cost of each project. 5. What was the cost to Australia in each case. 6. On what dates were the agreements signed, and what are the terms and conditions of each agreement. {: #subdebate-64-8-s1 .speaker-KEN} ##### Mr Fairhall:
LP -- The answer to the honourable member's question is as follows: (l)-(7). The following information is provided on agreements with foreign powers for the establishment of defence facilities in Australia. As the terms and conditions are lengthy, the Honourable Member is referred to the Inter-governmental Agreements which have been tabled in the House. {:#subdebate-64-9} #### Vietnam: Prisoners of War (Question No. 1545) {: #subdebate-64-9-s0 .speaker-6U4} ##### Mr Whitlam: asked the Minister for Defence, upon notice: > How many prisoners have been captured by the Australian forces in Vietnam since his answer to me on 19 May 1967 (Hansard, page 2476) and what changes, if any, have since been made in handling prisoners. {: #subdebate-64-9-s1 .speaker-KEN} ##### Mr Fairhall:
LP -- The answer to the honourable member's question is as follows: >Since May 1967, 58 prisoners of war have been captured by the Australian forces in Vietnam, making a total of 104 from June 1965 when the first Australian battalion arrived in Vietnam to 30 April 1969. There have been no changes in the procedures for handling prisoners. Australian prisoners are passed to the South Vietnamese authorities through the United States authorities at Long Binh. {:#subdebate-64-10} #### Vietnam: American Losses (Question No. 1521) {: #subdebate-64-10-s0 .speaker-BV8} ##### Mr Calwell: asked the Minister for Defence, upon notice: {: type="1" start="1"} 0. Has his attention been drawn to a Press item of 6 May stating that ' United States BrigadierGeneral S. L. A. Marshall, now retired, who was appointed last year by General William C. Westmoreland, then Commander of United States Forces in Vietnam, to assess American troops in the war zones, has reported that (a) 40% of American losses were due to mistakes of their own captains, lieutenants and platoon sergeants, (b) too many decisions that were essentially tactical in nature were made by political leaders for political reasons and made no military sense whatsoever and (c) the halt in the bombing of North Vietnam, ordered last year by President Johnson, was purely a tactical decision made for political reasons. {: type="1" start="2"} 0. If so, are Australian troop movements in Vietnam governed similarly by tactical decisions made, not by the Australian Military Commander in Vietnam but by the Australian Government in Canberra. 1. Will he state the conditions under which Australian troops perform their duties in Vietnam and what political directions have limited the freedom of action, on tactical grounds, of the Australian Commander to date. 2. Has the Australian Military Commander any real authority at all. {: #subdebate-64-10-s1 .speaker-KEN} ##### Mr Fairhall:
LP -- The answer to the honour able member's question is as follows: {: type="1" start="1"} 0. Yes. 1. , (3), (4). The Government has imposed no restrictions on Australian Commanders in Vietnam which might inhibit tactical freedom of action. Broad directions for the conduct of operations by Australian forces in Vietnam are contained in a directive issued by the Australian Government. This directive gives the. Commander Australian Force Vietnam (COMAFV) overall command of units and personnel of theRAN, Australian Army, and RAAF assigned to him for duty in Vietnam, and charges him with the responsibility for their overall conduct and activities including their safety and well being. The directive also defines the approved locations, roles and employment of the respective elements of the force and the areas in which they may be employed, as agreed with the Republic of Vietnam and United Slates Authorities. Operational control of each element of the Australian force is assigned to the appropriate United States Naval, Army, or Air Force Commander who allocates the tasks or missions to the Australian commander concerned. In the case of the Army, the Australian Task Force Commander having been allocated tasks has complete freedom within his allotted area of operations for the employment of his force as the tactical situation dictates. There are no restrictions placed by the Government which would binder him in any way in this regard. Australian Democratic Labor Party: Defence Programme (Question No. 1610) {: #subdebate-64-10-s2 .speaker-BV8} ##### Mr Calwell: asked the Minister for Defence upon notice: {: type="1" start="1"} 0. Is he able to say what is the estimated additional annual cost of implementing the Democratic Labor Party defence programme over the next ten years. 1. What is the cost of the Government's defence programme for 1968-69. {: #subdebate-64-10-s3 .speaker-KEN} ##### Mr Fairhall:
LP -- The answer to the right honourable member's question is: {: type="1" start="1"} 0. If the right honourable member is referring to the programme outlined by the Leader of the Democratic Labor Party in the Senate on 19th March, 1969, no estimate appears possible. 1. Expenditure including expenses from UnitedStates credits for 1968-69 was $ 1,164.697m. Vietnam (Question No. 1612) {: #subdebate-64-10-s4 .speaker-RK4} ##### Mr Hayden: asked the Minister for External Affairs, upon notice: {: type="1" start="1"} 0. Did he, during his press conference in Kuala Lumpur on 22nd April 1969 express the hope that on the settlement of the Vietnam war at least some proportion of the millions of dollars being spent on the war by the countries involved could be diverted to economic assistance in the development, not only of South Vietnam, but of other countries in the region. 1. Does the Australian Government have anyspecific plan regarding the possibilities of diverting some proportion of its expenditure on the Vietnam war to external economic assistance; if so, what is that plan. 2. If no specific planexists, what steps does he intend to take to persuade the Government to formulate a clear programme on this matterand thus ensure that his expressed hope becomes a reality. {: #subdebate-64-10-s5 .speaker-JXI} ##### Mr Freeth:
LP -- The answerto the honourable member's question is as follows: {: type="1" start="1"} 0. Yes. 1. It would be premature to formulate a detailed plan while there are so many uncertainties about the timing and specific points in the military and political outcome. 2. The whole question of economic aid to Vietnam after a cessation of the hostilities is being kept in mind. As appropriate occasion offers, 1 shall make public announcements about Australian aid to Vietnam after a cessation of the hostilities. Australia's current programme of economic assistance to Vietnam continues to meet some important needs of the Vietnamese people. It is contributing to the economic development of the country, and is providing substantial technical assistance and emergency relief. {:#subdebate-64-11} #### National Service: Apprentices (Question No. 1488) {: #subdebate-64-11-s0 .speaker-KGH} ##### Mr Hansen: asked the Minister for Labour and National Service, upon notice: {: type="1" start="1"} 0. Is it a fact that young men who have completed their apprenticeship and are awaiting callup for national service are frequently faced with employment problems. 1. Has his attention been drawn to the reluctance of some employers to retain former apprentices, either because of a policy of discharging them on completion of their apprenticeship or because of the likelihood of their being called-up for service, and that of other employers to engage tradesmen who are liable to call-up because of the re-engagement provisions of the National Service Act which are designed to protect the serviceman. 2. If so, will he give urgent consideration to amending the Act to protect these young men. {: #subdebate-64-11-s1 .speaker-JTP} ##### Mr Bury:
LP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. to (3) lt is firm Government policy to ensure, to the extent possible, that no man should suffer avoidable hardship or restriction because of his national service liability. There are, for example, comprehensive provisions in the National Service Act and the Defence (Re-establishment) Act, binding on all employers, which afford protection to a national service registrant in relation to his existing employment and provide for his rehabilitation and re-instatement in employment after service. Particularly relevant is the provision that an employer may not penalise or prejudice an employee in any way, including by dismissal from his employment, for the reason (hat he is or may become liable to render national service. Any apparent breach which is brought to the notice of my Department is investigated promptly and thoroughly and pursued to finality. In any proceedings the burden is upon the employer to prove that an employee proved to have been penalised or prejudiced in his employment was so penalised or prejudiced for a reason other than national service. Experience has been that employers generally are recognising and honouring their obligations. Very few cases of alleged discrimination have been brought to notice and none has resulted in prosecution action. Where a man is employed under a contract of apprenticeship it is binding only for the period covered by the indentures and it is for the employer to decide whether to continue employment beyond that period. A number of employers have a long standing practice of nol retaining all their apprentices when they become journeymen; some wish their tradesmen to have had wider experience than in their own organisation, others train apprentices in excess of their own requirements as a contribution to industry's skilled work force. The arrangements for the call-up of apprentices liable for national service were determined only after a careful examination of all relevant factors, including trade training, employment and reestablishment after service. They are granted deferment of call-up to enable them to complete their apprenticeships and are medically examined shortly before reaching that stage so that if passed fit they can be included in the first following Army intake. Thus the interval between attaining journeyman status and enlistment in the Army is kept to the minimum and, as I have indicated, employment problems during that period do not normally arise. The honourable member may be assured that in all cases where an employment problem is brought to notice, my Department not only investigates the possibility of a breach of the law but endeavours, through the Commonwealth Employment Service, to place the registrant concerned in suitable employment. {:#subdebate-64-12} #### Petrol Tax (Question No. 1558) {: #subdebate-64-12-s0 .speaker-6U4} ##### Mr WHITLAM:
WERRIWA, NEW SOUTH WALES · ALP asked the Minister representing the Minister for Customs and Excise, upon notice: {: type="1" start="1"} 0. What was the (a) amount and (b) percentage of the increase in collection of Customs and Excise duties on motor spirit and automotive diesel fuel in each of the last 20 years. 1. What was the date and extent of alterations in rates of duty during those years. {: #subdebate-64-12-s1 .speaker-009OD} ##### Mr Nixon:
Minister for the Interior · GIPPSLAND, VICTORIA · CP -- The Minister for Customs and Excise has provided the following answer to the honourable member's question: {: type="1" start="1"} 0. The Commonwealth Statistician has supplied the attached table showing the gross collections of Customs and Excise duties on motor spirit and automotive diesel oil for the years 1948-49 to 1967-68 together with the annual percentage changes for the total duties collected on these items. 1. The dates and extent of alterations in rates of duty arc as follows: From and including 1964/5, duty paid on motor spirit purchased by Commonwealth Departments is included. Primage duty collected under these items is not included in the above table as the figures are not recorded separately. {:#subdebate-64-13} #### Film Censorship (Question No. 1601) {: #subdebate-64-13-s0 .speaker-RK4} ##### Mr Hayden: asked the Minister representing the Minister for Customs and Excise, upon notice: {: type="1" start="1"} 0. What is the total number of hours of film screened by censors for the purpose of censoring films. 1. How many censors are engaged on this duty. 2. What was the average number of hours per day for a 5-day week per censor spent last year in reviewing films for censorship purposes. {: #subdebate-64-13-s1 .speaker-009OD} ##### Mr Nixon:
CP -- The Minister for Customs and Excise has provided the following answer to the honourable member's question: {: type="1" start="1"} 0. During 1967-68 the total number of hours of film screened by censors for the purpose of censoring films was as follows: {: type="1" start="2"} 0. Currently the Commonwealth Film Censorship Board comprises the Chief Film Censor, Deputy Chief Censor and six members. The Chief and Deputy Chief Censors spend much time on administrative duties. 1. Board members average 5i hours per day viewing films. {:#subdebate-64-14} #### Film Censorship (Question No. 1602) {: #subdebate-64-14-s0 .speaker-RK4} ##### Mr Hayden: asked the Minister representing the Minister for Customs and Excise, upon notice: >Has the Commonwealth Film Censor in annual reports recommended 'X' certificates for films; if so, when were the recommendations made, and what action followed the recommendations. {: #subdebate-64-14-s1 .speaker-009OD} ##### Mr Nixon:
CP -- The Minister for Customs and Excise has provided the following answer to the honourable member's question: >The Chief Film Censor has not recommended an 'X' certificate system for films in his annual reports. > >Under current Commonwealth legislation the Film Censorship Board has no authority to apply classifications to films for theatrical use. However, by virtue of the provisions of the Censorship of Films Acts of Victoria, Queensland, Western Australia and Tasmania and agreement between these States and the Commonwealth, the Commonwealth Fibs Censorship Board does impose classifications. > >At a conference in Hobart in January 1968, State Ministers rejected a proposal by the President of the Australian Council for Children's Films and Television that an 'X' type certificate be incorporated in the State systems of film classification. > >Should the States reverse this decision the Commonwealth, through the Film Censorship Board, would have no objection to applying an 'X' certificate classification. {:#subdebate-64-15} #### Imported Films (Question No. 1600) {: #subdebate-64-15-s0 .speaker-RK4} ##### Mr Hayden: asked the Minister represent ing the Minister for Customs and Excise, upon notice: {: type="1" start="1"} 0. What was the total number of (a) 35mm, (b) television and (c) other films imported during each of the past 10 years. 1. How many of the films in each of the above categories were (a) banned and (b) cut during each year. {: #subdebate-64-15-s1 .speaker-009OD} ##### Mr Nixon:
CP -- The Minister for Customs and Excise has provided the following answer to the honourable member's question: {: type="1" start="1"} 0. Total number of films imported in each of the past 10 years. {: type="1" start="2"} 0. Total number of films rejected and cut during each year. {:#subdebate-64-16} #### Commonwealth Departments: Premises (Question No. 1573) {: #subdebate-64-16-s0 .speaker-KGH} ##### Mr Hansen: asked the Minister for the Interior, upon notice: {: type="1" start="1"} 0. What premises are leased or rented by Commonwealth Departments within the Wide Bay Electoral Division. {: type="1" start="2"} 0. What Departments occupy these premises. 1. When do existing leases terminate. {: #subdebate-64-16-s1 .speaker-009OD} ##### Mr Nixon:
CP -- The answer to the honour able member's question is as follows: {:#subdebate-64-17} #### Imported Fish: Dumping (Question No. 1575) {: #subdebate-64-17-s0 .speaker-5J4} ##### Mr Scholes: asked the Minister representing the Minister for Customs and Excise, upon notice: >Will the Minister take action to protect Australian fishermen against dumping from overseas at prices far below the price at which fishermen can economically engage in the fishing industry. {: #subdebate-64-17-s1 .speaker-009OD} ##### Mr Nixon:
CP -- The Minister for Customs and Excise has provided the following answer to the honourable member's question: >The fishing industry has not made a complaint to the Department of Customs and Excise that fish is being dumped by overseas suppliers on the Australian market. > >However if a complaint is lodged with the Department and subsequent enquiries establish that sales are being made to Australia at unfair prices which have resulted in injury to the Australian industry, I am prepared to take action under the Dumping and Subsidies Act. {:#subdebate-64-18} #### Australian Capital Territory Finances (Question No. 1577) {: #subdebate-64-18-s0 .speaker-JWX} ##### Mr J R Fraser:
ALP er asked the Minister for the Interior, upon notice: >What practical result has developed from what was described in the document 'Self-Government for the Australian Capital Territory' in May 1967 as an energetic attack then being made on the problem of rationalising the financial aspects of the Government and administration of the Australian Capital Territory so as to extract from the general financial records of the Commonwealth details of the Australian Capital Territory components in a manner which would reflect Territory finances fully and accurately. {: #subdebate-64-18-s1 .speaker-009OD} ##### Mr Nixon:
CP -- The answer to the honourable member's question is as follows: >Progress has been made to the stage where I was in a position on 28th May 1969 to issue a Press statement to the effect that: > >the Government had approved the principle of publishing municipal type accounts for Canberra; > >the Government had decided that the published accounts must be audited; > >the final form of the accounts was still to be decided; and > >the form the accounts would take would be determined well in time for their publication at the end of the 1969-70 financial year. {:#subdebate-64-19} #### Third Party Premiums (Question No. 1118) {: #subdebate-64-19-s0 .speaker-JWX} ##### Mr J R Fraser:
ALP er asked the Minister for the Interior, upon notice: {: type="1" start="1"} 0. (a) In calculating the National Roads and Motorists' Association's financial results given in the table on page 7 of its report to the Minister dated 14 August 1968, what were the amounts of interest income brought into account by the Australian Capital Territory Third Party Premiums Advisory Committee in respect of each of the three annual and one half-yearly periods covered by that table, (b) On what basis were those amounts of interest income calculated. 1. What was the (a) nature and (b) quantum of the amounts (if any) deducted from net premium receipts in arriving at each of the amounts described as 'Earned Premiums' in the table on page 7 of the Committee's report. 2. (a) What part of the amounts described in Table 1 in the Committee's report as claims paid and incurred relates to estimates of liability on unsettled claims, (b) What adjustments (if any) were made to those estimates to reflect the experience of running off the claims for the 1967 year between the date of lodgment of annual returns for 1967 and the date of the Committee's report. 3. Were the trends in claims rate and costs per claim on which the Committee based its recommendations to the Minister established exclusively by reference to the graphs given on pages 4 and 5 of its report. 4. In respect of each of the years covered by the graphs mentioned in question (4), what was the quantum of each of the amounts used in the calculations underlying those graphs in respect of (a) the number of claims incurred, (b) the number of policies in force and (c) the total cost of claims incurred. 5. Does each of the items of statistics referred to in question (S) relate to the actual statistics of a particular year or do they comprise aggregations of parts of similar items covering more than one year; if so, what, in detail, are the actual statistics so aggregated. 6. (a) What statistical method was used in fitting the trend lines depicted in the graphs referred to in question (4). (b) Was any of the information used in fitting those trend lines weighted for any factor; if so, what were the factors applied. 7. What were the amounts of net premiums received from compulsory third party insurance in the Australian Capital Territory by N.R.M.A. Insurance Limited during each of the years from 1957 to 1967. 8. How many of the third party policies held in each of the years from 1957 to 1967 were issued by N.R.M.A. Insurance Limited. {: #subdebate-64-19-s1 .speaker-009OD} ##### Mr Nixon:
CP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. (a) The amounts of interest calculated by the Committee to have been earned by N.R.M.A. Insurance Limited on moneys invested during the period 1.7.64 to 31.12.67 are as follows: {: type="a" start="b"} 0. The amount of interest was calculated at 4% of the sum of the unexpired premium reserve and the average outstanding claim reserve (at the beginning and end of each year) plus or minus the profit or loss brought forward in the contingency account for each period. {: type="1" start="2"} 0. (a) Before earned premiums were calculated deductions were made for expenses, contingencies, and profits. 1. Amounts deducted were as follows: Earned premiums were then calculated by the following method: {: type="a" start="i"} 0. The amounts in (b) above were deducted from the net premiums received. {: type="i" start="ii"} 0. The earned premiums were then taken as the average of the figure obtained in (i) above and the corresponding figure for the previous year. {: type="a" start="b"} 0. In light of the detailed examination of estimates of liability in previous years, estimates of outstanding claims were taken into account at 100%. {: type="1" start="4"} 0. The graphs shown in the report were for illustrative purposes only; the calculations on which the Committee's recommendations were based did not utilise the graphs and in fact there was a slight variation between the preliminary figures from which the graphs were drawn and the figures later calculated on which the revised premiums were based. These variations are shown in the following table: - These variations are not signficant as in calculating the revised premiums a conservative estimate was made ofthe predicted claim cost as is shown in the following table: - {: type="1" start="6"} 0. The statistics referred to in question (5) relate in each case to the calendar year in which the accident occurred. Further details of each of the items are as follows: {: type="a" start="a"} 0. The claims incurred in a particular calendar year are notified gradually over that year and following years. Until it can be assumed that no timber claims for aparticular calendar year will be notified, an estimate of the number of claims incurred but nol notified is required. These esti mates are shown on the last line of the following table:- {: type="a" start="b"} 0. An accident occurring in a calendar- year may be covered by a policy issued in that year or by a policy issued in the previous year. Thus to relate the number of accidents to the number of insured vehicles, an average of policies issued in successive years is required- Note: Minor discrepancies between the figures in Column (3) and those given in the answer to part (5) are due to differing treatment in rounding the number of policies issued, some of which are in force for periods of less than a year. {: type="a" start="c"} 0. Payments in respect of accidents occurring in a particular calendar year are made during that year and the following years and details are shown in the following table. At any time, there exists a considerable liability in respect of accidents which occurred in previous years. An estimate of this liability as at 31 December 1967 is shown on the last line of the following table: - {: type="1" start="7"} 0. (a) The fitting of the trend lines was done by calculating i egression equations. 1. The factor taken into consideration in fitting the trend line was the need to attach more significance to the more recent data than that available for more distant accident years. This was achieved by using the number of claims in a year as the weight to be applied. {: type="1" start="8"} 0. 1957...... 60,134 1958...... 127,906 1959 .. .. .. 176,342 1960 .. .. .. 246,308 1961 .. .. .. 288,724 1962 .. .. 479,796 1963 .. .. .. 665,306 1964...... 764,054 1965...... 1,019,640 1966...... 1,133,527 1967...... 1,233,279 {: type="1" start="9"} 0. See answer to (6) (b) (1) above. {:#subdebate-64-20} #### Water Resources Research (Question No. 1477) {: #subdebate-64-20-s0 .speaker-RK4} ##### Mr Hayden: asked the Minister for the Interior, upon notice: {: type="1" start="1"} 0. Is there a programme for water resources research in the Alice Springs district. 1. By whom or by what organisations is this programme being conducted. 2. Are cores and cuttings from water drilling operations, associated with this programme, preserved. 3. Who is responsible for housing and examining them. 4. What footage of core and/or cuttings would be obtained in an average week from both government and private drilling operations in that area. 5. What proportion of wells drilled in the last 12 months by (a) government and (b) private contractors have struck usable quantities of water. {: #subdebate-64-20-s1 .speaker-009OD} ##### Mr Nixon:
CP -- The answer to the honourable member's question is as follows: {: type="1" start="1"} 0. Yes. 1. The programme is conducted by the Mines and Water Resources Branch of the Northern Territory Administration with assistance from the Bureau of Mineral Resources, C.S.I.R.O., and the Bureau of Meteorology. 2. Yes. 3. The responsibility for housing and examining the cores rests with the Mines and Water Resources Branch of the Northern Territory Administration with assistance from the Bureau of Mineral Resources. 4. A total of 600 feet a week. 5. (a) and (b) About 50%.

Cite as: Australia, House of Representatives, Debates, 12 August 1969, viewed 22 October 2017, <http://historichansard.net/hofreps/1969/19690812_reps_26_hor64/>.

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